2003 EMAS Environmental Statement 03 -...

Gorenje 2003 Sustainable Development Report and Gorenje, d.d.2003 EMAS Environmental Statement

Susceptible to diversity,prone to change.

sdr 2003 Manageable flexibilityin all fields of operation.

Gorenje 2003 SustainableDevelopment Report

Gorenje 2003 Sustainable Development Report and Gorenje, d.d.2003 EMAS Environmental Statement

Gorenje 2003 SustainableDevelopment Report and Gorenje, d.d.2003 EMAS Environmental Statement

Contents

pageChairman's Letter 4

1. The Gorenje Group Corporate Profile 61.1 Basic Information 61.2 The Gorenje Group Company Structure 81.3 Sales 92. Vision, Mission, Values and Strategic Goals 102.1 Vision, Mission and Values 102.2 Strategic Goals 113. Sustainable Growth 133.1 Social Responsibility by Companies 133.2 The EMAS System 134. Gorenje's Attitude Towards Employees

and the Social Environment 144.1. The Staff 144.1.1 Number and Educational Structure of Employees 154.1.1.1 The Gorenje Group 154.1.1.2 Gorenje, d.d. 154.1.2 Human Resource Development 174.1.3 Training and Personal Development of Staff 184.1.4 Health Situation among Employees 194.1.5 Night Work of Women 214.1.6 Participation of Gorenje Employees in Management 214.2 Occupational Health and Safety 224.3 Communication 224.4 Culture 224.5 Awards for Positive Attitude by Gorenje

Towards Sustainable Development 235. Environment Protection 245.1 Environment Protection at the Gorenje Parent Company 245.1.1 Handling Waste Electric and Electronic Equipment 245.2 Environment Protection in other Companies

of the Gorenje Group 256. EMAS Environmental Statement by Gorenje, d.d. 286.1 Statement on the Credibility of Environmental Data 286.2 Gorenje, d.d. Company Profile 286.2.1 Business Activities 286.2.2 Scope of Activities by Gorenje, d.d., covered by EMAS 296.2.3 Production 296.3 Development 306.4 Investments 306.5 Gorenje's Environmental Policy 316.6 Environmental Management System 326.6.1 Responsibility for the Environment 326.7 Assessment of Environmental Impacts 346.8 Environment Protection Data 386.8.1 Balance of Materials 386.8.2 Meeting Environment Protection Goals 396.8.3 Meeting Environment Protection Implementation Targets 416.9 Environment Protection Targets in 2004 436.10 Meeting Legal and other Requirements 44

Environment protection is a veryimportant component in all businessfields, particularly in the developmentof products and services, sales,purchasing, production, training ofstaff, communication with employeesas well as communication with thelocal and wider social environment.Therefore, it is not unusual to putenvironment protection in the veryfocus of our short-term and long-termstrategies and goals, and that it hasbecome an important part of theGorenje corporate culture.

In 2003, Gorenje completed aseveral-year long investment cycle intothe production of householdappliances, which was aimed atincreasing production capacity andupgrading technological processes. It was carried out according to therequirements of the most stringentinternational, particularly Europeantechnical and environmentalstandards, occupational health andsafety provisions as well as fire-protection standards. During thisperiod of intensive investment intoproduction facilities Gorenje managedto score important results indecreasing negative environmentalimpact and consumption of naturalresources. In 2003, the success rate inthis field has slightly decreased thusclosely following environmentalprograms.

Typical of the year 2003 was intensiveinvestment into the development ofnew products, which will continue even

in 2004, and which apart from designand functionality also takes intoaccount its compliance withenvironmental design principles,based on the complete lifecycle of theproduct from development,production, use and disposal after itslifetime.

The fields of occupational health andsafety as well as fire protection playan important role not only in selectingand integrating new technologicalequipment but in everyday care forthe safety of employees andproduction technology.

The care for employees and theirhealth as well as well-being is a keyfactor for us, since motivation andcreativity of employees contributedecisively to an increase of all otherresources. Therefore, great care istaken regarding working conditionsand solving problems of individuals,maintaining and improving their healthas well as elimination of any asocialphenomena. The visible resultsgenerated this way are demonstratedby loyalty, mutual relations, growth ofproductivity and other indicators eveneconomic ones.

For Gorenje taking care of employeesis not only a social component of itsacivity. Great care is given toemployment of people, who are well-trained to meet the challenges ofincreasingly demanding workprocesses. Education, training anddevelopment of human resources

Chairman's Letter

Despite tight competition indemanding European and othermarkets the Gorenje Group hasmanaged to generate constantphysical and economic growth formore than a decade. During all thistime its business conduct was guidedby principles of sustainable growth,while its results prove that successfulbusiness operations are closely linkedto a comprehensive care for the staffas well as a responsible attitudetowards the environment in its widestsense.

within Gorenje has been one of themost important fields of activity, whichface constant development. In 2003,special attention was paid to newapproaches in order to carefuly planand systematicaly define the availableknowledge base, assess deficient skillsas well as to the organisation andappreciate knowledge not only in thephase of acquiring it but also in thephase of transferring it within andoutside the company.

Even culture is an organised andspecific communication method amongemployees but it is also used toaddress the local and wider socialenvironment. For Gorenje »culture«means many different aspects. It hasan important role in business life, whileit manifests its contents in the form ofnew humanistic and aesthetic horizons.Among them are cultural venues,exhibitions and reading culture,educational forms like round tablediscussions, presentations, exchange ofviews and workshops along with theorganisation of exhibitions byacclaimed artists. Culture withinGorenje contributes a great deal tothe growth of the basic general valuesof life and the values of the businesssystem.

Even for the future we are aware ofthe responsibility for conductingbusiness based on sustainabledevelopment. By the EU-accession ofSlovenia and the adoption of the newLaw on Environment Protection inSlovenia, the opportunity is providedfor voluntary participation in theEMAS System. Gorenje, d.d. took thedecision to participate in thisEuropean environmental system,therefore the existing environmentalstandard ISO 14001 has beenenhanced accordingly. This makesGorenje even more effective andtransparent in the field of environmentprotection.

Franjo BobinacChairman of the Management Board

The Gorenje Group Corporate Profile1.

In 2003, the Gorenje Groupconsisted of the Gorenje, d.d.,parent company and 47 subsidiaries,operating in Slovenia and abroad.

1.1.Basic Information

SSuubbssiiddiiaarriieess CCoouunnttrryy DDiivviissiioonn SShhaarree %%1. Gorenje I.P.C., d.o.o. Slovenia GA 100.00%2. Biterm, d.o.o. Slovenia GA 75.00%3. Gorenje Notranja oprema, d.d. Slovenia NO 98.05%4. Gorenje Glin, d.o.o. Slovenia NO 98.05%5. Gorenje TIKI, d.o.o. Slovenia TSO 82.56%6. Gorenje Orodjarna, d.o.o. Slovenia TSO 100.00%7. Gorenje Indop, d.o.o. Slovenia TSO 100.00%8. Gorenje GTI, d.o.o. Slovenia ST 100.00%9. Gorenje Gostinstvo, d.o.o. Slovenia ST 100.00%10. LINEA, d.o.o. Slovenia ST 98.69%11. Energygor, d.o.o. Slovenia EVO 100.00%12. Opte Ptuj, d.o.o. Slovenia EVO 100.00%13. Kemis, d.o.o. Slovenia EVO 66.66%14. Elgor, d.o.o. Slovenia EVO 100.00%

Household appliances divisionInterior design divisionThermal and machine equipment divisionServices divisionPower management and environmentprotection division

Legend:

GANOTSOSTEVO

SSuubbssiiddiiaarriieess CCoouunnttrryy DDiivviissiioonn SShhaarree%%1. Gorenje Beteiligung GmbH Austria GA 100.00%2. Gorenje Austria Handels GmbH Austria GA 100.00%3. Gorenje Vertriebs GmbH Germany GA 100.00%4. Gorenje Körting Italia S.r.l. Italy GA 100.00%5. Gorenje France SA France GA 100.00%6. Gorenje BELUX S.a.r.l. Belgium GA 100.00%7. Gorenje UK Ltd. United Kingdom GA 100.00%8. Gorenje Skandinavien A/S Denmark GA 100.00%9. Gorenje Sverige AB Sweden GA 100.00%10. Gorenje Pacific Pty. Ltd. Australia GA 100.00%11. Gorenje USA Inc. USA GA 100.00%12. Gorenje Spol, s r.o. Czech Republic GA 100.00%13. Gorenje Commerce, d.o.o. Bosnia and Herzegovina GA 100.00%14. Gorenje Slovakia s r.o. Slovakia GA 100.00%15. Gorenje Budapest Kft. Hungary GA 100.00%16. Gorenje Polska Sp. z o.o. Poland GA 100.00%17. Gorenje Bulgaria EOOD Bulgaria GA 100.00%18. Gorenje Zagreb, d.o.o. Croatia GA 100.00%19. Gorenje Podgorica, d.o.o. Serbia and Montenegro GA 98.00%20. Gorenje OY Finland GA 100.00%21. Gorenje Skopje, d.o.o. Macedonia GA 100.00%22. Gorenje, d.o.o. Serbia and Montenegro GA 100.00%23. Gorenje Romania S.R.L. Romania GA 100.00%24. Gorenje AS Norway GA 100.00%25. Gorenje Küchen GmbH Austria NO 100.00%26. Gorenje Kuchyne spol, s r.o. Czech Republic NO 100.00%27. Gorenje Kuhinje, d.o.o. Bosnia and Herzegovina NO 98.05%28. Hyundai Auto, d.o.o. Serbia and Montenegro ST 100.00%29. Hyundai auto Zagreb d.o.o. Croatia ST 100.00%30. Gorenje Real Spol. s r.o. Czech Republic ST 100.00%31. Gorenje Real Kft. Hungary ST 100.00%32. Kemis Zagreb, d.o.o. Croatia EVO 66.66%33. Kemis BiH, d.o.o. Bosnia and Herzegovina EVO 62.73%

The companies of the GorenjeGroup can be classified into thefollowing five divisions:

household appliances division,comprising companies producing andselling household appliances,

interior design division, includescompanies manufacturing and sellingkitchen and bathroom furniture,sanitary equipment and ceramic tiles,

thermal and machine equipmentdivision, includes companies forproducing and selling water heaters,tools and industrial equipment,

services division, comprisescompanies active in the field oftrading, engineering, distribution,catering and tourism, as well as real-estate management,

power management andenvironment protection division,includes companies for handlingspecial waste, removal and processingsludge as well as production and saleof bricks, ceiling supports and supportbeams.

HHoouusseehhoolldd aapppplliiaanncceess ddiivviissiioonn

comprising fridge-freezers, cookers, dishwashers and washing machines,complementary and outsourced programmes, components program, Point program…

Basic activity

Furniture:– kitchens– bathrooms– halls– living rooms– ceramics

Other activitiesIInntteerriioorr ddeessiiggnnddiivviissiioonn

trading

representation andengineering

car sales

catering andtourism

real-estatemanagement

SSeerrvviicceess ddiivviissiioonn

powermanagement

environmentprotection

PPoowweerrmmaannaaggeemmeenntt aanndd eennvviirroonnmmeennttpprrootteeccttiioonn ddiivviissiioonn

machine building

toolmaking

thermal technology: – radiators– air-conditioners– water heaters

TThheerrmmaall aannddmmaacchhiinneeeeqquuiippmmeenntt ddiivviissiioonn

The management board was appointed onJuly 18th, 2003 for a period of five years.The mandate of the supervisory boardexpires on July 18th, 2006.

Management andSupervisory Board

1.2.The Gorenje Group Company Structure

Management board

Franjo BobinacChairman of the Board

Andrej VizjakMember of the Board

Franc KošecMember of the Board

Žiga DebeljakMember of the Board

Drago BahunMember of the Board

1.3.Sales

NNeett ssaalleess rreevveennuuee bbyy ddiivviissiioonn iinn MMiioo.. SSIITT 22000033 22000022Household appliances division 153,502.3 148,284.3Interior design division 15,514.9 11,404.4Thermal and machine equipment division 6,633.6 5,516.3Services division 19,007.9 16,313.0Power management and environment protection division 1,572.0 –Total 196,230.7 181,518.0

80%60%40%20%0

Revenue structureby division in 2003

household appliances

interior design

thermal and machineequipment

services

power managementand environment

80%60%40%20%0

Revenue structureby division in 2002

household appliances

interior design

thermal and machineequipment

services

power managementand environment

In 2003, the total consolidated netrevenue from sales by the GorenjeGroup amounted to 196,230.7 Mio.SIT, which means an increase by8.1 % compared to 2002.

The revenue structure shows that thehousehold appliances division sectorslightly shrunk, while on the other

hand the share of the interior designdivision increased because of the inte-gration of the Glin, d.d. company intothe group, along with the share of thepower management and environmentprotection division because of the inte-gration of the companies Kemis, d.o.o.and Opte, d.o.o. into the Group.

The strategy of operational flexibilityof the Gorenje Group companiesrequired constant monitoring ofchanges in the business environment,assessing its own capabilities foradapting to change, creatingconditions for adapting andintroducing any required changes. Thespecified processes were carried outon all operation levels of the companyas well as the Group as a whole: onthe level of business activities, on thelevel of techniques and productmanufacturing technologies orperforming services, on the level ofcustomers, suppliers, employees….

Due to constant need for adapting,which meant flexibly responding tochallenges from the environment, suchbusiness conduct led to a high level ofoperation complexity and thusrelatively higher cost than it wouldhave incurred through constant,balanced and evolutionary adaptingto change. Therefore one of the basicstrategies by the Gorenje Group was,is and will be constant optimisation ofbusiness processes and thus its

operating cost on all levels and in allforms of its operation.

The consequence of the describedstrategy of business flexibility alongwith cost optimisation is the operationof the Gorenje Group companies indifferent business fields, which by theirbasic activity provide synergisticeffects and because of this providebroader business optimisationopportunities. Developing differentactivities enables the parent companyand all affiliate ones economicparticipation in the business environ-ment, mutual involvement andmaximising economic abilities as wellas balanced redistribution of businessrisks.

Maximising earnings is not the onlygoal of the Gorenje Group but ratherreaching a long-term equilibrium ofbusiness operations, which in the longrun balances expectations by theowners, employees, business partnersand other people involved in thecompany. In implementing its missionof producing, applying and marketingof quality, user –friendly products andservices, the Gorenje Groupimplements its values of creating long-term shareholder value, maintainsrelations with its customers andbusiness partners, takes care about itsemployees, their knowledge base,maintains and strengthens loyaltytowards Gorenje, develops acorporate as well as the Gorenjetrademark identity and encouragesenvironmental awareness ofemployees and the environment itoperates in.

Vision, Mission, Values and Strategic Goals2.

Throughout the development history ofthe business system, the companies ofthe Gorenje Group were facingnumerous challenges, imposed by thebusiness environment: the need fordynamic development and closelyfollowing the development speed ofthe competition, along with the needfor active monitoring and flexibleadapting to change in the businessenvironment, as well as the need forsegmentation of its operations byfields of activity.

The specified basic challenges ofbusiness in the past and of the futurewere sumarised by the parentcompany and the Gorenje Group inthe following vision of the strategicplan.

Gorenje strives to be a flexible andmanageable business system in allfields of its operation.

2.1.Vision, Mission and Values

excellence in managing internalbusiness processes by applying thestrategy of optimising businessprocesses, their control, optimising thevalue chain and innovativedevelopment,

implementation of the learningmodel and business system growth byapplying the strategy of developmentand strengthening corporate culture,development of the compensationsystem, implementation of theknowledge management model aswell as providing autonomy ofemployees, and

increasing shareholder value byapplying the strategy of revenue andprofitability growth as well as thestrategy of cost effectiveness.

The specified goals and strategic focusarising from them are the basis forattaining the goals of long-termbalanced operation of the individualcompanies, part of the Gorenje Groupand the Group as a whole.

In its 2003 – 2006 strategic businessplan, adopted in 2002, the GorenjeGroup clearly defined its basicstrategic focus and goals, which it wasable to define because of the cleargoals of its operations. With the helpof the model of strategically focusedbusiness system it opted for thefollowing basic goals:

business excellence regarding itsrelations with customers and otherbusiness partners by applying thestrategy of differentiation on variouslevels (on the level of products andservices as well as on the level ofclients and other business partners),

2.2.Strategic Goals

NewIn 2003, Gorenje harmonised its operation with the EMAS System requirementsas stipulated by the EU regulationNo. 761/2001.

We are on the right track. Our horizon is communication openness.

Direction is more important than speed.

WWee ssttrriivvee ttoo bbee

ooff oouurr aaccttiivviittyy..

aa fflleexxiibbllee aanndd

iinn aallll aaeerraass

mmaannaaggeeaabbllee ccoorrppoorraattee ssttrruuccttuurree

Valuescorporate identityequilibrium between expectations of shareholders, employeesproduction and marketing of user-friendly products and servicesmaintaining relations with customers and business partners

In 1999, the World Council forSustainable Development wrote:"Social responsibility means constantcommitment of the company to ethicalconduct, economic development,improving the quality of life ofemployees, their families, the localcommunity and the society in general."

To define key areas of socialresponsibility within a company it isnecessary to consider basic principlesfor implementing social responsibilityof companies which are: fair andequal treatment of employees, ethicaland fair business conduct, respectingbasic human rights, responsibleattitude toward the environment aswell as a fair relation towards theimmediate local community and thewider social environment.

Since companies are responsible fortheir activities, which have an impacton people, societies and their naturalenvironment,they have to research,identify and quantify negative andpositive impact. Based on theseassessments the company has to plansocial responsibility in such a way thatit constantly reduces the negativeimpact of its operation.

An increasing number of companiesinform target audiences about theiractivities in the field of socialresponsibility. The reports can becomprehensive, prepared based onrecommendations, like for example theGlobal Reporting Initiative, whichdefines 50 major and 47 additionalenvironmental, social and economicindicators. Even more widespread arereports based on differentinternational standards (ISO 14001,EMAS, SA 8000,…).

The environment management systemaccording to the EMAS System (Eco-management and Audit Scheme) wasintroduced by the European Unionalready back in 1995 by adopting the1836/93/EEC guideline. The schemewas initially intended for companies inthe industry sector. In 2001, the EUadopted a new guideline no.761/2001/EC, by which it upgradedthe original scheme so that therequirements by the ISO 14001standards were enhanced by morestringent requirements in the field ofmeeting legal requirements, publicrelations and involving employees aswell as internal audits, while it alsorequires organisations to prepare andpublish annual audited environmentalstatements.

In the field of legal requirements it isnot enough just to know them, theresults have to prove not only theirimplementation, but also that theserequirements are constantly met. Theenvironmental statement is one of thekey elements of the EMAS System. Thisstatement establishes communicationand dialogue with the public andother interested parties regarding theimpact of the organisation on theenvironment and its environmentaleffectiveness. The environmentalstatement needs to be revised andaudited once a year.

Sustainable Growth3.3.2.The EMAS System

3.1.Social Responsibility byCompanies

requirements of the work process.Gorenje also continues to raiseawareness and to constantly remindpeople, that the care for one’s ownhealth and safety is in particular avery individual responsability. By jointefforts of the human resourcesdepartment and the management ofindividual programs for improving thework atmosphere and interpersonalrelations as well as constant investinginto improving working conditions,Gorenje managed to decrease thelevel of sick-leave, while evenindicators of the severity and incidenceof injuries at work are better than theyear before.

Gorenje also started to prepare asystemisation of workplaces or bettertheir harmonisation with the newoccupational legislation. Newdescriptions of workplaces for up tothe educational level V have alreadybeen prepared, while for moredemanding workplaces thedescriptions will be prepared later thisyear.

Employees are the key factor ofsuccess in the future. By theirknowledge, motivation and loyalty tothe company they represent a valuableasset, which requires investment,development and protection.

In the 2003 business plan, theregarding employees followingimportant goals have been defined:

care for the education of employeesand development of their creativepotential,

training employees to take new rolesin the implementation of the SAPinformation system,

harmonisation of the systemisation ofworkplaces with the new occupationallegislation,

bringing programs of managerialtraining up-to-date and upgrading theprogram with contents for managingand working with people,

care for good working conditions,safe and healthy work as well as goodinterpersonal relations,

developing habits of employees fora healthy lifestyle and responsibilityfor their own health.

These goals have been implemented in2003 in all fields quite successfully. A number of employees take part inadditional education while working inthe company not only to attain ahigher education level, but also toacquire new additional knowledge,which is increasingly important forwork. This way they are getting moreflexible, they can adapt easier to new

Gorenje’s Attitude Towards Employees and the Social Environment

All economic entities – private andpublic ones from EU countries as wellas Iceland, Norway and Liechtenstein –can participate in the EMAS System.The accession to the scheme isvoluntary, while the participatingparties have to meet clearly definedrules. Slovenia plans to implement thescheme shortly after joining the EU.

The use of the EMAS logo facilitatesconsumers, partners and otherinterested parties to select a moreenvironment friendly product, serviceor activity. Companies, which haveimplemented the EMAS System arebound to conduct their businessresponsibly on the basis of sustainabledevelopment.

4.1.The Staff

The Gorenje Group

The operating results by the GorenjeGroup are the result of efforts by itsemployees which at the end of 2003totalled 9,427 people.This representsan increase by 7.5 % compared to theyear before. The reason for such an

4.1.1.1.

4.1.1.2.

4.1.1.Number and Educational Structureof Employees

Number of employeesat the end of 2003

Level of professionaleducation at the endof 2003

Gorenje, d.d.

Since 2000, when the output of house-hold appliances increased consider-ably, the number of employees alsorose thus reaching the highest numberin the last decade of 2003.

In the following years the number ofemployees will not increase consider-ably or may stabilise at an average of5,400 employees.

important increase in the number ofemployees is the organic growth of theGorenje Group and expansion of thebusiness, which enabled that the setgoals for 2003 have been achieved.

Number of employees by division Number of employees Average numberon Dec. 31st

2003 2002 2003 2002Household appliances division 7,092 6,760 6,821 6,620Interior design division 1,228 1,073 1,243 1,081Thermal and machine equipment division 666 628 653 600Services division 361 311 352 309Power management and environment protection division 80 – 77 –TToottaall 99,,442277 88,,777722 99,,114466 88,,661100

Gorenje Group Gorenje d.d.Level of professional education No. of employees No. of employees

Dec.31st2003 Dec.31st2002 Dec.31st2003 Dec.31st2002I. 3,093 2,950 1,984 1,948II. 537 511 393 393III. 315 316 183 180IV. 2,529 2,328 1,395 1,355V. 2,008 1,881 1,159 1,112VI. 376 304 169 162VII. 531 453 271 241VIII. 38 29 25 20TToottaall 99,,442277 88,,777722 55,,557799 55,,441111

education or are Masters of Sciences.The improvement of the professionaleducation level is the consequence ofa more selective approach in employ-ment, since even in production sectorsGorenje prefers to employ people witha least a completed vocational educa-tion. They are able to learn faster andare more flexible. On the other handthere is also growing interest by thealready employed to continue theireducation while working, since theyare very much aware that with moderntechnologies which are being intro-duced, education is very important fortheir career.

Year after year the professional educa-tion level of employees is improving.Despite predominant employment inthe production sector, the number ofemployees without formal professionaleducation is decreasing, while thenumber of employees with vocationaland secondary one is increasing. Alsoon the rise is the share of employeeswith higher or university education. In2003, out of all the workforce therewere more than third unskilled work-ers, ten percent have at least twoyears of vocational training. A quarterof all employees has standard voca-tional education, a fifth secondaryeducation. More than 8 % of theworkforce have higher or university

Number of employeessince 1994

6,0005,0004,0003,0002,0001,0000

Number of employees

The main function in the humanresource development is to identifyindividual advantages, wishes andambition, and to develop them accord-ing to one’s goals and the goals of thecompany. There are various sources ofgetting such information, so Gorenjeuses various procedures and instru-ments like psychological tests as wellas different research projects in theform of interviews. The scope of the

assessed personality features can givea more comprehensive picture thusincreasing objectiveness, since just onepiece of information can result in incor-rect conclusions.

4.1.2.Human Resource Development

Structure of professionaleducational level since1994

6,0005,0004,0003,0002,0001,0000

Professional educational level I.+II. III.+IV. V. VI. VII.+VIII.

2,377 1,578 1,159 296169

2,341 1,535 1,112 261162

2,246 1,381 1,024 226161

2,314 1,373 982 200152

2,034 1,074 851 182139

2,073 1,005 773 158133

2,317 1,053 777 148136

2,181 918 738 147137

2,279 943 764 138133

2,369 924 740 136121

4.1.3.Training and PersonalDevelopment of Staff

In 2003, apart from high-level prepa-ration and implementation of the edu-cational and training plan, the educa-tional centre started to createprocedures and define criteria, whichshould result in improved quality ofeducation and human resource deve-lopment along with a higher qualitylevel of acquiring new knowledge. Inpreparing and implementing of theannual plan special attention was paidto all participants, who take part inthe education program. The prepara-tions included intensive cooperationwith users of educational programs, aswell those who perform such educa-tion. Even professional services as well

as professional and managerial staffby Gorenje were asked to participate,since they are an important source ofinformation in defining and acquiringnew knowledge.

In 2003, 4,692 employees participat-ed in 450 different courses, seminarsor conferences. 66,530 hours of edu-cation were provided. The trainingtook place during working hours, outof working hours (the majority of lec-tures), while the number of educationalprogrammes held during weekendsand on holidays was reduced. 45.7 %of all employees participated in trainings.

An 83-percent share of internallyorganised programs confirms ourdirection that by appropriate organi-sation and transfer of knowledgewithin the company cost is reducedand the circulation of knowledgewithin the company increases.

The structure of hours by differentsubject show that the largest numberor 44 % of them were dedicated toprofessional training and education ofemployees. This ensures furthersuccessful development, sincefollowing trends, development andrequirements of new technologies is

imperative to maintain one’s marketposition.

Programs in the field of quality andenvironment management comesecond with a share of 21 %. Thebusiness processes by Gorenje isbased on respecting the highestenvironmental standards. In this partintensive training was carried out totrain employees not only forenvironment management but also forsafe and healthy work (6 %). Theshare of hours for improving skills inthe field of communication was 2 %.

80%60%40%20%0

Training and Personal Developmentof Staff

professional training

computer sciences and IT

languages

functional training in the fieldof management

functional training in the field ofcommunication skills

functional training in the field ofoccupational health and safety

functional training in the field ofenvironment management and quality

transfer information and cultural valuesas well as to encourage initiativeamong employees.

The goal of managerial training is toupdate knowledge within the organi-sation, get to know the business policyof the company as well as monitor andassess personality features of individu-als with potential. Training programsfor all three management levels withinthe company were carried out:

25 participants took part in the15th generation of the GorenjeManager Academy, among them 16from Gorenje, d.d. and 9 potentialmanagers from subsidiares. During thefour modules within one year thecandidates acquired theoreticalknowledge on management, includingsustainable development as well aspractical skills through publicappearances using techniques ofpreparing and presenting businessplans to the company management.

The care for employees, their healthand well-being at work is of key impor-tance to the company, since motivationand creativity of the staff are the mostimportant contribution for enhancingall other resources.

Therefore a lot of attention is paid toworking conditions and to solvingproblems by individuals, maintainingand improving their health and elimi-nation of any asocial phenomenon.This results in a higher level of loyaltyand better interpersonal relations.The effects are not only humane butalso economic ones with an extremelypositive impact on productivity andbusiness results.

Tasks or activities for eliminating allthose factors, which in the workingenvironment have a negative impacton the general state of health andabsence from work are:

operation of The first aid dispensary,performing health education and

prevention programmes,cooperation with doctors,allocating employees with reduced

work ability to less demandingworkplaces,

visits at home,providing help in case of

psychological problems,financial assistance in cases of

protracted illnesses.

All these activities are held in coopera-tion with people from different servicesand production programs, so witheven doctors.

4.1.4.Health Situation among Employees

The information age requires peopleto adapt to the ever changing techno-logical solutions, therefore the share ofthis field is quite high (7 %), even sothe number of hours dedicated toimproving foreign language skillswhich totals 10 %. This can be regar-ded as a consequence of opening thecompany on a larger scale and cooperation with international compa-nies.

In 2003, special attention was paid tomanagement programs. These semi-nars had a 10 % share among alleducational programs. The programs were prepared in sucha way that managers were trained toconvey the mission and vision of thecompany to employees based on theirown example.

At the same time the seminars madethem acquire skills and knowledge to

Legend:* FNH = full number of hours

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

% v RČF9,5%

9.38.9

7.87.5 7.5 7.6

100%80%60%40%20%0

17.59%

Share of sick leaveand other absencefrom work in 2003(% of FNH*) forGorenje, d.d.

Sick leavethroughout theyears (% of FNH*)for Gorenje, d.d.

sick leave

other absence

full number of hours

6.7 6.66.2

In 1993 and 1994, there was aconsiderable increase which wasprobably the consequence of changeswithin the society, a new healthlegislation which led to the eliminationof in-company sickrooms, the new rightto choose one’s own doctor etc.Typical of this period is the transitionto market economy and restructuringof companies. Employees are usuallynot prone to change even if theybenefit from them; sometimes the fearabout loosing security arises, which isone of the main reasons why many at

that time attempted to improve theirstatus by going on sick leave orgetting various medical certificates.Almost all Slovene companies had tocope with the same problem.In 1995 the trend started to improve –not only because of the changes inmentality but also because of variousmeasures to reduce sick leave.

Health and sick leave

Health does not depend on biologicalfactors only, like for example: age, sexand hereditary factors. The lifestyle ofthe individual as well as different envi-ronmental factors – situation within thesociety, family, at the workplace – alsohave an important role.

Since a sick and discontented employeecan not be successful, but rather goeson sick leave, Gorenje tries to eliminateany negative factor at the workplace.

Operation of The first aid dispensary

One of the result of the operation ofthe first aid dispensary, which employstwo nurses, is improved health byemployees as well as a reduction inthe numbers of hours lost because ofhealth problems. The two nurses per-form in particular the following tasks:

first aid in the event of injuries andvarious pain conditions,

consulting and health educationprograms,

parental therapy and bloodpressure check-ups,

classification of patients prior seeinga doctor, issuing sick leave certificates

cooperation with the Health andSafety service related to accidents atwork.

Performing health education and pre-ventive programmes

Health education is carried out mainlyin Gorenje’s own dispensary. Witharticles in the "Črno na belem" ("Blackon White") internal magazine in theregular "Health" column a positive atti-tude towards life and work, as well asgreater care for the physical healthand mental stability is promoted.Health education also became part ofvarious internal educational programs.

Cooperation with doctors

Every day Gorenje closely cooperateswith personal doctors of its employees,while on a temporary basis it alsoworks together with selected doctorsand some specialists.

When inspecting and assessing work-places Gorenje always ensures theparticipation of a doctor of occupa-tional medicine.

The main aim of these contacts is tosolve problems regarding repeatedand long-term sick leave of employees– seeking appropriate solutions (moreappropriate work, agreements regard-ing therapy, kicking off procedures infront of the disability commission etc.)

Allocating work to employees withreduced work ability (disability issues):It is of paramount importance that allemployees with reduced work abilityare provided with work they can per-form successfully thus spending lesstime on sick leave.

Based on medical diagnoses andopinions by selected doctors Gorenjetries to find appropriate tasks, isinvolved in assigning different work-places and cooperates in proceedingsin front of the disability commission.

Visits at home

The aim of visits at home is to verifyhow employees on sick leave followthe doctor's instructions and how thegeneral regulations in times of sickleave are followed.

Quite important is also to get to knowpeople's problems, expectations, wish-es and to communicate all this infor-mation to the working environment.In this way a better insight into thehealth problems or reasons for sickleave is provided.

Gorenje, d.d. employs 50.8 % ofwomen. It strives to use its productioncapacity correctly and wisely. Due tobottlenecks in production at somedepartments even in 2004, night workcan not be completely eliminated.

According to valid occupational legis-lation the scope of night work bywomen and their number is scheduledexclusively with the consent of theWorker's Council and the individualsin question.

The following table shows that thenumber of hours performed duringnight shifts in 2003 despite increasedproduction in no production programexceeded the scheduled number ofhours, which women scheduled fornight-shifts were supposed to workwithin the total annual number of hour.

In 2002, night work by women wasperformed without any problems andcontinued uninterrupted. During nightshifts there were no serious injuries, thesupervision and meals were appropri-ate, transportation to and from workwas provided.

4.1.5.Night Work by Women

In all Gorenje Group companies thereare Worker's Councils in place, whilsthalf of the Gorenje, d.d. SupervisoryBoard members are representatives ofthe employees. This way Gorenje pro-vides conditions for the participationof employees in management accor-ding to current legislation and generalstandards known to democratic societies.

4.1.6.Participation of GorenjeEmployees in Management

year 1995 1996 1997 1998 1999 2000 2001 2002 2003Number of women 247 272 219 328 314 284 341 290 385

Number of womenperforming three-shift work

In 2003, the systemic interdisciplinarypreventive measures introduced someyears ago began to prove their cor-rectness and started to show first posi-tive results. The following systemwidepreventive measures contributed mostto healthy and safe work:

considering principles of preliminarysafety during set-up of newtechnological equipment andprocesses,

safety training at all productionlevels with particular focus on practicaltraining for correct and safe work,

performing guided health promotionprograms, based on risk assessment,

implementing the 20 keys system.Particularly key number 1, whichdiscusses the set-up of the workenvironment, has a great impact onthe rate of accidents and relatedeffects,

emphasis on an analytical approachfor risk assessment following eventsinvolving damage and providingreasons and possible solutions toresponsible managers andprofessional supporting services forindividual programs and activities onall levels of the organisationalstructure.

The professional fire brigade pays alot of attention to educating and trai-ning its members as well as theemployees of Gorenje in the field offire prevention by organising tacticalfire-fighting exercises. All divisions feature fire-alarm system, while activefire protection is provided on a selec-tive basis.

One of the essential factors for the suc-cess of the parent company and theGorenje Group are employees. Moti-vated employees make the differencebetween average and excellence. Nomatter how well-considered businessstrategies are, without employeesbeing able and prepared to imple-ment them they are doomed to fail.The employees want and have theright to be informed about issues,directly affecting their wok. By provid-ing information on a regular and sys-tematic basis this condition is met. Oneof the internal communication tools arepublications by Gorenje: a weekly"Črno na belem" and a periodical"Pika na G", while at the end of theyear the first issue of the electronic "E-glasilo" was released. Issues involvingsustainable development are constantlypart of the discussed topics.

At Gorenje culture as an organisedand specific communication methodamong employees has a 26-year longtradition. By its specific method of driv-ing awareness for critical ways ofthinking and education for human val-ues, even for the environment, it con-tributes in different forms to the profileof entrepreneurial or corporate cul-ture. As such it requires a systematicapproach and position within the busi-ness system thus helping to be recog-nised as part of the vision and strategyof the company.

During all these years Gorenje hasorganised different educational ven-ues, round table discussions, culturalevents and expositions by recognisedSlovene and foreign academic artists(painters, sculptors,…).

In 2003, at the Gorenje gallery exhi-bitions by the academic painter Kle-mentina Golija, the academic painterKlavdij Palčič, the academic sculptor

Dušan Džamonja were held, while theVelenje castle was host of the exhibi-tion of paintings by Goran Horvat tomark its 30 years of work. All theseremarkable cultural events contributeto a positive self-image, cultivate thefeeling for beauty among employeesand the wider public as well as gene-rate the impression of the companyitself to be well organised.

Apart from exhibitions, Gorenje cher-ishes a special attitude towards booksand reading.

Works by numerous writers, who visi-ted Gorenje or the Kulturnica book-shop, often express a critical socialview thus matching principles of sus-tainable development.

During the week of the world environ-ment day, an exhibition by the aca-demic painter Štefan Marflak washeld. Among the motives wereemblems of Slovenehood. This way theday when all Slovenes should focustheir thoughts and deeds into a confir-mation of their national identity, thuskeeping Slovene natural treasuresintact and providing an appropriatesustainable development was remem-bered.

4.2.Occupational Health and Safety

4.3.Communication

4.4.Culture

In 2002, Gorenje was awarded anumber of prizes and acknowledge-ments for its efforts in the wider areaof sustainable growth.

In 2002, the Agency for Effective Useof Energy (AURE) awarded Gorenjethe prize for the most energy efficientcompany. It qualified for the prize bycontinually reducing the use of energyresources in the production processand the use of its products, the attitudeof management and employeestowards sustainable growth, educationand training of employees, as well asthe wider public, along with the imple-mentation of investments into restruc-turing technological processes.

For a number of years the attitude ofthe company management towards afriendly working environment, introduc-tion of cleaner technologies, participa-tion of employees in creating an envi-ronmental culture, as well as a socialresponsibility of the company hasbeen assessed in Slovenia with specialprizes being awarded. In 2002, justas many years before, Gorenjereceived a recognition from theSlovene Chamber of Economy for thebest working environment in Sloveniain the category of large enterprises.

In October 2002, the company wasvisited by a large group of partici-pants of the international conferenceon methods of increasing companycompetitiveness, which was held inLjubljana. Among them was the authorof the 20 keys method, the Japaneseprofessor Ivao Kobaiashi. On thatday, the special 20 keys company

award ceremony 2002 was held inLjubljana. Among the participatingSlovene companies the award went toGorenje. In the explanation it was saidthat apart from introducing the methodin its own companies, the GorenjeGroup is also active in promoting theculture of constant improvement withinthe wider Slovene area.

At the end of 2002 Gorenje receivedanother equally important recognitioncalled the "Golden Leaf", which wasawarded to Gorenje for universal sup-port and an active role in the "RisingBook" project. The "Rising Book" is aspecial symbol of the Slovene past,present and in particular the future, anexceptional message on preservingthe Slovene cultural heritage.

In May 2003, the Learning CompanyInstitute (IUP) from Ljubljana awardedrecognitions to all those Slovene com-panies, which in the past year cameclosest to the tenet of a Learningorganisation. Gorenje was among therecipients for the third time in a row.This recognition once again provesthat the development of staff and edu-cation as part of the basic values ofcorporate culture are not just adeclared intent.

At the chamber of commerce for thesavinjsko-šaleška region an assessmentof the most well-organised workingenvironments in the area was carriedout also in 2003. In the category oflarge enterprises the commissionselected as candidate the companyGorenje Orodjarna, which alsoreceived this award in November.

The attitude by the management andemployees towards the environment,implementation of environmental poli-cy, goals and programs as well ascooperation with the interested publicwas confirmed by the award for bestenvironmental company in Slovenia.This recognition is awarded by theGospodarski vestnik magazine andthe Slovene Ecology and DevelopmentFund. Gorenje won this prize for thefirst time in 2001, and received itagain in 2003.

Ten companies competed for the titleEnvironment-friendly company 2003,by proving their environmental focusthrough publicly disclosed reports theyhad prepared during the last threeyears as part of implementing an envi-ronment management system accor-ding to the ISO 14001 standard.

This award is a confirmation andincentive for Gorenje to keep up con-stant investments into environment pro-tection, which is one of the importantsegments laid out in the strategicgoals of the company while slowlygaining a new dimension. By 2006 itwill develop into a new business activi-ty.

As the winner in the category environ-ment-friendly company, Gorenje isa candidate for the European Awardfor the Environment, which is awardedby the European environmental commission.

4.5.Awards for Positive Attitude byGorenje Towards SustainableDevelopment

5.1.1.Handling Waste Electric andElectronic Equipment

From the aspect of sustainable devel-opment environment protection hasbeen part of the operations of Gore-nje ever since its very beginning. Untilthe mid-eighties environmental impactwas dealt with the help of differentfunctional departments. In 1985, thedepartment Ecology was set-up whichrepresents the beginning of a uniformdevelopment an effective environmen-tal strategy. Later the department wasmerged with the analytical laboratoryand the Central wastewater treatmentplant. It was called Ecology and ana-lytical chemistry with central waste-water treatment plant.

Since 2003 environment protectionwithin the parent company is organi-sed as an independent field of activity,which performs tasks of consulting,control, coordination, education, coop-eration with authorities and performsoperative tasks.

In 2000 the environment managementsystem was adapted to meet therequirements of the ISO 14001 stan-dard and the system was certified.

In 2003, the existing environmentmanagement system was upgradedaccording to the requirements for par-ticipating in the European environmen-tal system EMAS. Beginning of AprilGorenje successfully passed the EMASaudit. Conditions for being acceptedto the EMAS list were first providedafter May 1st, 2004, when Sloveniabecame full EU-member.

The results of the environment manage-ment policy are given in this report. Infuture Gorenje's activities will focus onthe decomposition of electric and elec-tronic waste, reducing the use of cer-tain hazardous substances as part ofthe electric and electronic equipmentas well as development of new prod-ucts according to requirements of envi-ronment-friendly design.

On February 13th, 2003 the Euro-pean parliament adopted the2002/96/EC directive on waste elec-tric and electronic equipment (WEEE).The basic aim of this environmentalpolicy is to maintain, protect andimprove environment qua-lity, protectthe health of people and to use natu-ral resources wisely and effectively.The main aspect of this directive is thatremedy for environmental damage hasto be borne by the source and that thepolluter has to pay for it. In this case itis the manufacturer. The directiveapplies to all manufacturers of electricand electronic equipment, from smallto large household appliances, com-puters, TVs, printers to electric tools,medical equipment and beveragevending machines.

On August 13th, 2004, this directiveshall be adopted by national legisla-tion in all 25 EU-member countriesand will oblige not only authorities butalso producers to meet their obliga-tions. Authorities are obliged to pro-vide conditions for the implementationof the directive and are responsible forreporting the achieved results to theEuropean commission. One of themain goals is that countries ensure thata minimum of 4 kg of waste equipmentis collected per capita (the annualsales account for around 12 kg percapita). The producers on the otherside are obliged individually or in clus-ters to set-up such a system for processingwaste equipment which will ensure thebest results of processing and recy-cling. The directive stipulates levels ofprocessing and recycling for every cat-egory of equipment defined in it.

The cost linked to the handling andprocessing waste equipment exceptthe cost of collecting from households,is covered by producers. In the interimperiod (approx. 10 years), when equip-ment, already sold in the market in thepast and for which producers did notset-up any disposal fund, the cost forhandling discarded equipment will bepassed on be to customers of new

equipment in a transparent way.The cost estimate for the disposal ofdiscarded equipment will be in aver-age around 0.5 EUR per kilogram ofequipment.

Gorenje, as Slovenia's largest producerof equipment, which is bound by thisdirective will set-up a system which willminimise the cost for handling and dis-posal of waste electric and electronicequipment. Gorenje will make its sys-tem available to other producers,distributors and importers, who selltheir products on the Slovene market.

Technology, required for the process-ing of electric and electronic equip-ment has to meet technical and safetystandards, it has to be certified byauthorities and through its processesensure the implementation of goalsdefined by the directive regarding pro-cessing and recycling levels as well asgoals regarding limiting the use of cer-tain hazardous substances (RoHS). InSlovenia, such technologies are cur-rently non-existent, therefore investmentinto this industry is required becauseonly this way cost which incurs throughprocessing waste could be optimised.

According to current Slovene legisla-tion the end-users of such equipment inhouseholds are obliged to comply withthe Regulations on separate gathering,which also deals with electronic andelectric equipment. Most probably theywill also be obliged to pay a certainclearly declared amount, which willcover the cost for processing wasteequipment, which has been or will besold prior to August 13th, 2005. Fromthis day on all electronic and electricequipment will carry the logo ofcrossed dustbin. The logo clearly indi-cates that equipment dealt with by thedirective may not be disposed oftogether with other household waste,that it belongs to equipment, which wassold after August 13th, 2005 and thatthe manufacturer is thus obliged to cov-er the cost of its disposal.

Environment Protection5.5.1.Environment Protection at theGorenje Parent Company

At Gorenje Orodjarna, d.o.o., an envi-ronment management system accor-ding to the requirements of the ISO14001 standard has been set-up andcertified. In 2003, the new Termofor-ming profit centre managed to reducethe quantities of waste aluminium chipsby simply changing the size of inputmaterial. By implementing emulsionpurification devices at the machinedepartment they also managed toextend the stability of the emulsionthus directly reducing the quantity ofdiscarded emulsion and at the sametime they prevented that unpleasantodour is generated.

At Gorenje Indop, d.o.o., the impacton the environment is managedaccording to the requirements of theirISO 14001 certified system. Withinthis system they follow in particular thefollowing goals: systematic monitoringof the effects of their activity on theenvironment, planning technical devel-opment of products in a way that theproduction as well as the productsthemselves will have as little effect onthe environment as possible, and con-trol of all important environmentalparameters along with the consump-tion of energy media. Compared to2002 in 2003, the quantity of wastewas reduced by around 5 %, thesewage system was thoroughly recon-structed, the electric energy consump-tion was reduced by 3 % and the con-sumption of energy for heating wasreduced by 5 %.

Gorenje I.P.C., d.o.o. received its envi-ronment management certificate inDecember 2002. The system is integ-rated into the quality management sys-tem. During the first year following thereceipt of the certificate a system formonitoring absolute and specific con-sumption of energy media (electricpower, thermal energy, water andgas) as well as their cost, consumptionof raw materials, handling hazardoussubstances and chemicals, separatecollection of waste and monitoring ofindividual environmental parametersaccording to legal requirements wasset-up.

Gorenje GTI, d.o.o., which set-up andcertified its environment managementsystem according to the requirementsof the ISO 14001 back in 1999, man-aged to fully implement its goals. Theactivities were focused in particular onpreparing and adapting to legalrequirements in the field of new anddiscarded packaging, waste as well asozone-depleting substances. Accord-ing to the annual plan they trainedemployees and even performed areadiness and response exercise foremergency situations. During the lastmonths they also started activities forsetting-up a system for waste manage-ment and compliance to other environ-mental requirements at their new distri-bution centre in Ljubljana.

Biterm, d.o.o. received the certificatefor its ISO 14001 environment man-agement system in 2001. In 2003,they adopted a comprehensive pro-gram of environment managementwhich was subsequently successfullyimplemented. Important improvementshave been achieved in the field ofreducing the consumption of naturalresources. They managed to reducethe specific consumption of energymedia and input materials. Comparedto the year before they managed toreduce the consumption of electricpower by 8 %, compressed air by 7 %,water by 71 %, ethyl alcohol by 7 %and the specific use of tins by 24 %.Waste was collected separately bytype. They also implemented othergoals of the program like education ofemployees and training of internalauditors along with managing emer-gency situations and occupationalhealth. The outline goals and targets-for 2004 have already been con-firmed and adopted.

Even in companies which have so farnot yet certified their environment man-agement systems according to interna-tional standards, environmental issuesremain carefully and systematicallymanaged.

5.2.Environment Protection in otherCompanies of the Gorenje Group

Gorenje Notranja oprema, d.d.,implemented a system for monitoringtechnological wastewater at the furni-ture, ceramics and Marles subdivi-sions, a system for monitoring emis-sions of substances released into theair at the furniture, bathrooms andceramics subdivisions as well as noiseemission in the ceramics and bathroomsubdivisions. For all programs targetsfor waste generated by productionhave been defined. At the bathroomand furniture subdivisions activitieswere started to reduce the emissionsof evaporating organic compoundsinto air. At the ceramics and bathroomsubdivision they implemented meas-ures for reducing noise emissions. Inall production processes separategathering of waste was set-up, while atthe Marles and bathroom subdivisionswood waste started to be applied asan energy media, while in the ceram-ics and Marles subdivisions they man-aged to reduce the consumption ofthermal energy. The implementation ofthe project of optimum use of electricenergy was also carried on in all sub-divisions.

At Gorenje Tiki, d.o.o. the agreementon accepting waste and implementa-tion of separate waste collection withthe Dinos d.d. company was renewedthus decreasing the quantity of wastefor disposal by 50 %. Hazardouswaste and waste, which may not bedisposed in utility landfills, were dis-posed of through authorised compa-nies (Opte Ptuj, d.o.o., Kemis, d.o.o).For all types of waste the correspon-ding assessments were performed andhandling was changed to comply withthem. The industrial wastewater is puri-fied at a mechanical wastewater treat-ment plant. In 2003, this water wassubject to operational monitoring. Itwas established that the results complywith legal requirements. Air-emissionand noise level monitoring stipulatedby regulations were also carried out.With the kind assistance of the Goren-je, d.d. professional services, activitiesfor complying with regulations regard-ing disposable packaging materialwere carried out along with a trainingfor employees on handling hazardouschemicals. Apart from that environ-ment protection goals for 2004 weredefined.

At Gorenje Gostinstvo, d.o.o. the col-lecting and disposal of used edible oilon all locations has been set-up toreflect legal requirements. The usededible oil is disposed of by an autho-rised contractor. In 2003, the projectof building – reconstruction of a self-service restaurant and kitchen withservice facilities was begun. The pro-ject also includes a system for process-ing organic refuse which will result inan 80 % decrease in the quantity ofwaste.

Opte Ptuj, d.o.o. has the status of acompany for the disposal and process-ing of waste. As such it is entered intothe register by the correspondingagency of the republic of Slovenia. Ituses dedicated equipment and appliesprocedures particularly for the dispos-al of galvanic sludge and processingof waste oil. Regarding their servicesof disposal and processing of wasteOpte has in 2003 among other inten-sified its control over accepting indivi-dual types of waste, adopted andimplemented measures for improvingthe performance of technological pro-cedures in the fields of disposal andprocessing, implemented an opera-tional monitoring of emissions of sub-stances into air and made sure to com-ply with other legal and technicalregulations in the field of waste man-agement.

Kemis, d.o.o. with its basic activity ofremoving and disposal of waste con-tributes to reducing pollution. In2003, it started to implement therequirements of the ISO 14001 and18001 standards into their ISO 9001(2000) quality management system.Among others its policy includes acommitment to protect the environmentand ensure health and safety ofemployees, clients and the environ-ment it is operating in. This policy alsoincludes the company’s duty to reducethe consumption of natural resourcesas well to reduce the cost for the dis-posal of hazardous waste for cus-tomers.

As part of the 2003 improvementsprogram, Kemis managed to developthe area around its shredder facility bysetting-up a service area and construc-tion of a roof thus reducing the possi-bility of negative impact on the envi-ronment during the waste shreddingprocess. Their distillation equipmentwas moved to appropriately recon-structed premises, a new warehousewas built and the equipment for inter-nal logistics was modernised.

Social responsibility meansconstant commitment of the companyto ethical conduct, economic development, improving the qualityof life of employees.

We are on the right track. Our horizon is communication openness.

Direction is more important than speed.

WWee ssttrriivvee ttoo bbee

ooff oouurr aaccttiivviittyy..

aa fflleexxiibbllee aanndd

iinn aallll aaeerraass

mmaannaaggeeaabbllee ccoorrppoorraattee ssttrruuccttuurree

their families,the local comunityand the societyin general.

In 2003, Gorenje, d.d. harmonised itsoperations with the requirements ofEMAS according to the EC Regulationno. 761/2001. We hereby declarethat all data and facts, specified in theEMAS environmental statement byGorenje, d.d. for 2003, are fullycredible and reflect the actual status ofthe environment management systemwithin the company.

The implementation of EMAS withinGorenje, d.d. was audited in Apriland in September 2004 by theSlovene Institute for Quality andMetrology (SiQ) which came to theconclusion that the system complies therequirements of the EMAS Regulation.

Vilma FeceManaging Director of theEnvironmental protection

EMAS Environmental Statement by Gorenje, d.d.6.6.1.Statement on the Credibility ofEnvironmental Data

Company name:Gorenje, gospodinjski aparati, d.d.

Date of entry into the commercialregister:December 31st, 1997

Short name of the company:Gorenje, d.d.

Seat of the company:Velenje, Partizanska 12

Activities of the company: production, sale and servicing ofelectrical and non-electrical householdappliances and electric heatingdevices:

refrigerators, freezers and coolingappliances

washing machines and tumble-dryers

electrical, gas cookers and ovens.

Activity code:29.710 Production of electricityoperated household appliances

Tax number:SI 72615320

Register number:5163676

Subscribed capital: 12,200,000,000 SIT

Shares:12,200,000 ordinary shares with aface value of 1,000 SIT; the stocks ofthe Gorenje, d.d. company with theacronym GRVG are listed on theLjubljana stock exchange.

6.2.Gorenje, d.d. Company Profile

6.2.1. Business Activities

EMAS covers all activities by Gorenje,d.d.in Velenje (mixed spheres, intended forindustrial, after-sales service, craft andservicing activities). The activityincludes the production and sale ofhousehold appliances.The productionconsists of:

the fridge-freezers program:production of refrigerators, freezers,deep freezers and combinedappliances,

the cooker program: production ofelectric and gas cookers, ovens andstoves,

the dishwasher and washingmachine program: production ofwashing machines, tumble-dryers andpantry kitchens,

the MEKOM program: productionof metal and plastic components.

EMAS does not include the productionof pipe radiators and metalcomponents at the Rogatec plant andthe MEKOM program also producedat that site.

The production of household appliancesis based on four main product lines:fridge-freezers, washing machines andtumble-dryers, cooker program andMEKOM program, which are all carriedwithin the Gorenje, d.d. company.

The project of developing and produc-ing appliances for the American marketmade Gorenje enter the second phasein the fridge-freezers product range,which includes glass cabinets for coolingdrinks as well as glass cabinets for cool-ing wine, refrigerators for open-air useas for example on terraces as well asrefrigerators for delicatessen. The kick-off of the project regarding the new generation of fridge-freezers featuring awidth of 600 mm means the beginningof its complete redesign.

In the second half of 2003, the projectof developing and introducting new gen-eration of washing machines and tumbledries was concluded. From the aspect ofproducts this will mean a redesign ofalmost a quarter of the complete rangeof household appliances by the secondhalf of 2004.

6.2.2.Scope of Activities byGorenje, d.d., covered by EMAS

6.2.3.Production

Comprehensive range oftop quality products Production (pcs.) Cookers Washing Fridge-- Total

machines freezers1999 634,809 500,833 965,339 2,100,9812000 739,467 590,315 1,016,502 2,346,2842001 788,247 594,098 1,062,989 2,445,3342002 904,635 666,324 1,155,095 2,726,0542003 888,546 679,442 1,200,785 2,768,773Annual growth(average) +9.5% +6.4% +5.0% +6.7%

100%80%60%40%20%0

Cookers Washing machines Fridge-freezers

199930.2%

43.3%25.2%31.5%

43.5%24.3%32.2%

42.4%24.4%33.2%

43.4%24.5%32.1%

After more than five years of intensivedevelopment of new products and rede-sign of all families of cooking appliancesthe work will turn to a more moderatepace. A new generation of integratedovens, combined and gas cookers of 50cm width as well as some niche-productslike cooking centre, integrated ceramiczones of 850 mm width with warm-upzone as well as a free-standing cookerof 60 cm with inductive hotplates werereleased for production.

The MEKOM component program wasrounded off by setting-up a plastics fac-tory, where Gorenje started to produceglass doors of fridge-freezers for theAmerican market, as well as anotherproduction site in Rogatec, where themanufacturing process of dynamic con-densers for fridge-freezers for the Ameri-can marked has been set-up.

Additionally, a new radiator for dryingfootwear was developed and a projectof a new production facility was started.

In all of its research activities theGorenje Group is driven by its strive tothoroughly understand the needs ofcustomers and business partners.These needs are strongly shaped byglobal changes in the society, whichare reflected by individuality, steadilygrowing age of the population,increasing communication betweenpeople with the help of electronicmedia, their attitude towards trade-marks and traditional values as forexample the family, while in the busi-ness world the trends are mergersbetween producers or even distribu-tors, higher quality level of servicesand products, strong foothold by com-petition from the Far East in the tradi-tional European market, volatility ofthe European market due to the EUenlargement etc.

The response to such a developmentcan only be a well-balanced develop-ment of the complete society from theeconomic, social and environmentalaspect on one side, and a carefullybalanced development of products,technologies and business processeson the other. Such an approachenables Gorenje to be adequatelyprepared for the unexpected thusbuilding trust not only with customersbut also business partners.

In 2003, the basis for the develop-ment of products continued to bedesign excellence, associated withoptimum functional solutions, low ener-gy consumption, almost silent opera-tion, integrated intelligent systems,which additionally help to save energyand add to the quality of basic func-tions thus linking products into com-pact electronically interconnected sys-tems and well-engineered technicalsolutions.

The development of technologies tookplace in parallel to the development ofproducts, while being focused on ahigher level of automation andincreasing production capacity, which

6.3.Development

Most of the investments within theGorenje Group in 2003 were made inthe household appliances divisionamounting to 22,496.7 Mio. SIT,where 17,824.1 Mio. SIT alone wereinvested by the Gorenje, d.d. company.

Intensive investment into markets andtechnologies resulted in enhancedproductivity, flexibility and reliability ofthe production processes, environ-mental focus as well as reduced cost.

6.4.Investments

is in-line with the goals of the strategicplan. From the aspect of price, the cor-responding application of materialsand optimum development solutionshave enabled Gorenje to keep a tightgrip over material and labour cost.

A lot of attention was paid to thedevelopment of business processes aswell as the ongoing IT upgrade, whichhas enabled the optimisation of busi-ness processes:

the most demanding control systemfor the development, introduction andmanufacturing of products based onthe 6 sigma quality approach as wellas its implementation in productionhave opened doors to new customers;

the 20 keys method for assessingthe competitiveness of a company onthe market and its constantimprovement has been applied inalmost all companies of the Group;

the use of simultaneousdevelopment, where techniques areapplied, which considerably shortenthe development cycle, has been fullyadopted and implemented;

the establishing of an innovationcentre, whose mission is to activatepotential intellectual resources in thefield of a new knowledge basethrough cooperation with faculties andR&D institutions from Slovenia andabroad;

membership of Gorenje, d.d. in theCECED – the European Committee ofDomestic Equipment Manufacturers,where major European producershave started a joint initiative, whichwould lead to a long-termdevelopment of the industry andsatisfaction of customers onstandardised platforms.

6.5Gorenje's Environmental Policy

The strategic plan by Gorenje for themedium-term period between 2002and 2006 is based on the currentapproval of the vision: being a flexibleand manageable business system inall fields of its operation. This is alsotrue for environment protection. Duringproduction and constant developmentof its products Gorenje complies withthe most stringent internationalenvironmental standards, whileenvironment protection is an importantpart of Gorenje’s relationship with thelocal and wider social environment.

Because of its importance, theenvironmental policy has become anintegral part of the managementpolicy of Gorenje, d.d. and itsorganisational culture.

Environment protection is one of thebasic rights, duties and responsibilitiesof all employees and is considered anintegral part of the companymanagement.

We bind ourselves also in the futureto:

include ecology into ourdevelopment strategy, annual andoperative plans including anticipatedmeasures, means, bearers, performersand timeframes in order to constantlyreduce any negative environmentalimpacts;

change and asses environmentalaspects and in case of discrepanciestake appropriate measures;

improve the ecological situationwithin our company while respectingenvironmental regulations;

use such materials and components,which will meet the most demandinglocal and international environmentalstandards;

plan and introduce newtechnologies and products accordingto environment protection principles,which includes the complete lifecycleof the product: from development,manufacture, use and disposal afteruse;

take care of reducing the quantity ofthe produced waste and take everymeasure for the effective use of energyresources;

train employees and develop humanresources in order to raise theirawareness regarding the responsibilitytowards the working and widerenvironment;

actively cooperate with theconcerned internal and externalpublic, and so contribute to thesuccess of joint ecological efforts;

inform the public about ourachievements in the field ofenvironment protection.

In 2003, Gorenje, d.d. completed itsfirst six-year period since the adoptionof the first environmental policy system,practical implementation targets andprograms. This period was stronglyshaped by intensive investment intonew technologies and products,organisational and managementrestructuring changes as well asthorough changes of the legislation inthe field of environment protection.

A consequence of all these efforts isalso a new, upgraded environmentalpolicy, which was signed by FranjoBobinac chairman of the managementboard on February 24th.

Gorenje is building its environmentalmanagement system by a follow-up ofthe environmental progress andimplementation of stipulationsaccording to the ISO 14001 standardand EMAS regulation.

Requirements according to the ISO14001 standard and the EMASregulation are met by constant trainingfor checking environmental impacts.

Policy: includes all strategic goals byGorenje.

Proceedings: is the basic document ofthe environmental management systemand describes measures for constantmonitoring and improving of theenvironment condition within thecompany.

Programs: are carried out constantlyto attain the defined goals, whichenable constant environmentalprogress.

Verifications and audits: control of theprogram implementation to attain thedefined goals within the environmentalmanagement system.

Releasing reports: summarise andpresent information

Managing production from theenvironmental aspect is defined byindividual organisational units throughinternal standardisation documents.The implementation of environmentprotection programs and goals withinthe parent company Gorenje, d.d., isthe responsibility of the Environmentprotection, which apart from practicaltasks (wastewater treatment, wastemanagement, supervision ofhazardous chemicals, education,..)also performs consulting andcoordination tasks for the wholeGorenje Group.

As stipulated by the ISO 14001standard and EMAS regulation aswell as the Gorenje strategy, arepresentative of the management forthe environment is appointed, which isat the same time managing director ofthe Environment protection. Whenpreparing environmental goals andprograms, introducing newenvironmental approaches andlegislative requirements as well assolving environmental problems withinthe company, apart from theemployees of the Environmentprotection, environment coordinatorscan be appointed, who arerepresentatives from individualprograms and business fields.

6.6.EnvironmentalManagement System

6.6.1.Responsibilityfor the Environment

Responsibilityfor the Environment

- development of new products, types and modifications following the principles of simultaneousdevelopment

MMaannaaggeemmeenntt

DDeevveellooppmmeenntt

- consulting- supervision- coordination- education

EEnnvviirroonnmmeennttpprrootteeccttiioonn

- market research- product information- client requirements

MMaarrkkeettiinngg

- sending requests to suppliers

- looking for environment firendly materials

PPuurrcchhaassee

- production of environment friendly products and packaging

- activities for reducing energy comsumption, waste, emissions

- separate waste collection

- environment management system assessment

- education for environement protection

PPrroodduuccttiioonn

- communicating with the public

- information on environment management within the company

PPuubblliicc rreellaattiioonnss

- selecting environment friendly transportation methods

LLooggiissttiiccss

- providing adequate spare parts

- training of service personel for environment friendly conduct

CCuussttoommeerr ccaarree

- preparation of publications

CCoommmmuunnuuccaattiioonnsswwiitthh eemmppllooyyeeeess

When assessing impacts on the environment, generated by Gorenjethrough its operation and products,the following issues were considered:

direct impacts, which representdirect consequences of proper action,

indirect impacts, which means effectscaused directly by others, althoughGorenje activity may have aninfluence on the occurrence of sucheffect, its scope and/or nature ofpollution.

Impacts on the environment thusmeans any change of the environment,a positive or negative one, which canbe by itself or partially attributed tothe acti-vities, products or services byGorenje. The activity elements, whichinteract with the environment arecalled environmental aspects.

When analysing environmental aspectswe have to consider all phases of theproduction process (including logistics),products and activities in standardoperating condition as well as in anemergency situation. Any group ofexperts, which analyses an individualenvironmental aspect has to considerthe following criteria:

environmental policy and legalrequirements,

opinion of the parties in questionrisk assessment,proper assessment,assessment in non-standard

conditions and emergency situation.

The environmental aspects can bedefined as:

identifiedimportant oressential

6.7.Assessment of EnvironmentalImpacts

Essential environmental aspects inGorenje are significant environmentalaspects defined by EMAS regulation.They are considered when definingoutline and implementation goals andprograms. In setting goals andprograms other aspects are consideredaccording to Gorenje’s own assessment.

Environmental impacts induced byproduction processes of Gorenje, d.d.are the following:

natural resources consumption(inbound raw materials, electric andheating energy, natural gas, water),

air pollution,water pollution, especially with

pollutants of metallic sourcenoise,impact of waste on environment

(hazardous waste, secondary rawmaterials and waste for disposal),

and environmental impacts of use ofwhite goods:

consumption of natural sources(electric energy and water),

water pollution (municipal water),noise,impact of waste on environment

(packaging waste and and-of-lifeappliances).

11.. RRAAWW MMAATTEERRIIAALL

Environmental aspects, defined in 1998

In 1998 aspects were defined andestimated by Gorenje for the firsttime. Based on such views thetargets and goals were set for theperiod 1998 – 2003. - dangerous

substances and preparations

IImmppoorrttaanntteennvviirroommeennttaallaassppeeccttss

EEsssseennttiiaalleennvviirroommeennttaallaassppeeccttss

- sheet-metal- metal and non-metal based components

- chemicals- thermal and sound insulation

- semi-finished goods made of rubber and plastic

- packaging material

44.. EEMMIISSSSIIOONNSS - emission into air- emission into soil- noise emission

- emission into air(organic solvents,dust)

22.. EENNEERRGGYY MMEEDDIIAA - electric power- thermal energy- natural gas

- compressed air- water

- electric power- thermal energy- natural gas

- compressed air- water

66.. PPRROODDUUCCTTSS - products

55.. WWAASSTTEE - wastewatertechnological

wastewatercooling

wastewaterutility wastewatersewage systemoutflow from

Central wastewatertreatment plant- hazardous waste- secondary raw materials

- waste for disposal

- wastewatertechnological

wastewater (nickel-content)

- hazardous waste- secondary raw materials

- wastewatertechnological

wastewatercooling

wastewaterutility wastewatersewage systemoutflow from

Central wastewatertreatment plant- hazardous waste- secondary raw materials

33.. OOTTHHEERR

IIddeennttiiffiieeddeennvviirroommeennttaallaassppeeccttss

- electric power

- natural gas(consumption)

- compressed air- water(consumption)

- personal protectionequipment

- office supplies- cleaning clothes- glass- paper and fancy goods

- emission into air- emission into soil- noise emission

Environmental impacts Gorenje confronted with in this period, werethe following: consumption of naturalsources (electric energy, natural gas,water), air pollution, impact of wasteon environment (industrial effluents,hazardous waste and secondarywaste as well as waste for disposal).

After the programmes of environmen-tal protection have been implemented,enabling us to fulfil the targets set inthe period 1998 – 2003, the newestimation of environmental aspectswere carried out by Gorenje, d.d.. Relevant views are defined in the table»Environmental aspects, redefined in2004«. It is evident from the table thatthe focus of Gorenje’s operationimpacts was reoriented from the

production issues to solving the envi-ronmental issue incurred by the product.Wishing to retain the continuity of con-trol over environmental achievements,and based on aspects redefined in2004, the essential environmentalaspects according to our own consideration, among other alsorational consumption of energysources, have been included in theprogram (water, electric energy, heatingenergy, compressed air and naturalgas) as well as quantity reduction ofwaste (hazardous waste, secondarymetal raw materials, waste for disposal).

11.. RRAAWW MMAATTEERRIIAALL

Environmental aspects, redefined in 2004

They have served as the basis forthe preparation of targets in theperiod 2004 – 2006.

The largest environmental impact ofGorenje, d.d. is actually observedin its secondary impact, due toproducts exploitation and theirafter-sales servicing: consumption ofnatural sources (electric energy,water), water pollution withmunicipal effluents, noise andimpact of waste on environment.

IImmppoorrttaanntteennvviirroommeennttaallaassppeeccttss

EEsssseennttiiaalleennvviirroommeennttaallaassppeeccttss

44.. EEMMIISSSSIIOONNSS - emission into air- emission into soil- noise emission- emission into water

technologicalwastewater

coolingwastewater

utility wastewatersewage system:

- acidic sewer system- precipitate sewersystem- faeces sewer system

22.. EENNEERRGGYY MMEEDDIIAA - electric power- thermal energy- natural gas- compressed air- water

- electric power- thermal energy- natural gas- compressed air- water

66.. PPRROODDUUCCTTSS - product / service- proper parts- outsourced parts

- product / service- product / service- proper parts- outsourced parts

55.. WWAASSTTEE - hazardous waste- secondary raw

materials- waste for disposal

- hazardous waste- secondary raw materials

33.. OOTTHHEERR

IIddeennttiiffiieeddeennvviirroommeennttaallaassppeeccttss

- office supplies- additional material

- emission into air- emission into soil- noise emission- emission into water

technologicalwastewater

coolingwastewater

utility wastewatersewage system:

- acidic sewer system- precipitate sewersystem- faeces sewer system

6.8.Environmental Protection Data

6.8.1. Balance of Materials

2003Material input 155,390.0 t 100.00%

OutputProducts 139,684.6 t 89.93%Metal-based secondary raw material 11,702.1 t 7.54 %Non-metal-based secondary raw material 2,258.9 t 1.45 %Waste for disposal 1,216.8 t 0.78 %Hazardous waste 502.3 t 0.32 %Emissions into water 0.2 t 0.0001 %Emissions into air 12.5 t 0.008 %

Power mediaElectric power 22.24 kWh/productNatural gas 1.03 Nm3/productWater 0.19 m3/product

The basic raw materials used in theproduction process of household appli-ances are sheet-metal, plastic gra-nules, electric components, chemicalsand packaging material.

The output of the material balanceincludes products (household appli-ances), waste as well as emissions intoair and water.

Waste can be classified into secon-dary raw materials (metal and non-metal based), hazardous waste andwaste for disposal (disposed of onnon-hazardous waste dump of Velenjemunicipality).

Particularly waste sheet-metal, paper,wood and polymer waste are recycledin Gorenje’s own processes or by itsbusiness partners. This category alsoincludes waste packaging material.

The largest share as far as hazardouswaste is concerned represents sludge,which is generated during the purifica-tion of technological wastewater.Apart from that there are waste oiland emulsions, oil-soaked cloths,waste chemicals as well as waste polyol and isocyanates.

Air emissions include emissions fromall technological processes of Gorenje, d.d.. The largest portionpresent is the emission of solvents fromscreen printing processes and maintenance of technological devicesas well as the dust from powder coating and enamelling processes.CO2 emissions, as a consequence ofthe consumed electric power and natural gas as energy resources havebeen disregarded.

Emissions into water include all para-meters, required according to thenational legislation with the exceptionof sulphate, which for the business ofGorenje does not represent an impor-tant environmental aspect.

Major part of natural gas in Gorenjeis used in coating processes. Electricenergy is necessary in all manufac-turing procedures for appliances andcomponents; extraordinary large consumer is automated production.Water is used in processes of surfaceprotection and for cooling.

6.8.2.Meeting Environment Protection Goals

water by 48 % and the consumptionof natural gas by 20 %. How well the implementation targets in individualyears have been met is given below.To point out just some of the achieve-ments by Gorenje:

the quantity of hazardous wastewas reduced by 67 % per product.

the quantity of waste for disposalwas reduced by 61 % per product.

the wastewater treatment plant fortechnological wastewater wasreleased by 74 %,

the consumption of water wasreduced by 66 % per product.

the consumption of natural gas wasreduced by 47 % per product.

Outline goals until 2003 were definedbased on 1997 data considering theenvironmental impact. Meeting thisgoals ensures a decrease of negativeeffects on the environment as a conse-quence of the Gorenje, d.d. opera-tions, and secures its sustainable deve-lopment.

Between 1997 and 2003, investinginto the modernisation of technologicalprocesses, thus introducing cleanertechnologies and implementing organi-sational measures, led to a decreasein the quantity of hazardous waste by51 %, the quantity of waste fordisposal by 31 %, consumption of

Outline Goals for 2003Compared to the InitialYear 1997

* Gorenje failed to reach this goal. Such animportant discrepancy is the consequenceof a much larger increase in output,enlarged assortiment and modifications(more sofisticated) in design.

Aspect Unit 1997 2003 Goal % implementeduntil 2003 by 2003

reducing the quantity of– hazardous waste kg/product 0.55 0.18

(1,018.9 t) (502.3 t) –50 –51– secondary raw materials kg/product 3.72 4.23

(7,091.9 t) (11,714.7 t) –20 +160*– waste for disposal kg/product 1.14 0.44

(11,772 m3) (8,112 m3) –30 –31

effective use of energy resources– consumption of water m3/product 0.56 0.19

(1,042,067m3) (540,542m3) –35 –48– consumption of natural gas m3/product 1,93 1,03

(3,552,936 m3) (2,842,552 m3) –20 –20

reduction of organic solvent emissions by % 400 t 9.7 t –90 –98reduction of dust emission by % 18 t 2,185 t –90 –89reduction of the nickel-content from the CWWTP % 0.65 mg/l 0.37 mg/l –40 –43

– quantity of appliances produced 1,843,126 2,768,773

water treatment plant was reducedthus ensuring that its operation complies to the legislator requirements.

According to the defined outline goalsthe nickel-content released from ourown mechanical chemical central waste-

dary metal-based raw materials, whichis explained in the footnote to table.However, regarding secondary rawmaterials the specific values for 2003(4.23 kg/product) compared to year1997 (3.72 kg/product) increased by13.7 %.

Based on the defined outline goals inthe field of environment protection untilthe year 2003 and comparing themto 1997 data it can be establishedthat all the outline environment protec-tion goals have been achieved exceptone in the field of managing secon-

Thetargets in the field ofreducing emissions oforganic solvents and dust

1997 1998 199 2000 2003t/year t/year t/year t/year t/year

Solvents 400 312 120 45 9.7 Dust 18 19.95 14.98 5.38 2.18

1.31.4

1.21.11.00.90.80.70.60.50.40.30.20.10.0 1997 1998 1999 2000 2001 2002 2003

nickel (mg/l)

1.100.98

0.290.34 0.37

maximumpermissiblenickel-content

The quantity of waste for disposal(calculated per product) decreased by10.2 % and reached 0.44 kg/product.Despite efforts the defined target of0.40 kg/product could not beattained. The reduction of the absolutequantity of waste for disposal is aresult of the consequent elimination ofnon-metal-based secondary material(paper, cardboard,…).

Compared to 2002 in 2003 the spe-cific water consumption increased by5.7 % which means that Gorenje hasfailed to attain the defined target of0.17 m3/product. There was also anincrease in the consumption of electricpower by 2.9 % (however, even theobtained level is quite a success, asGorenje, despite of automation in theproduction, succeeded in retainingelectric energy consumption on thesame level), thermal energy by 7.8 %and natural gas by 1 %.

resulted in a 3.1 % decrease of thegenerated enamelled and varnish-coated waste sheet metal, but this isunfortunately not true for non-processed and stainless sheet-metal.One of the consequences is the 8.5 %discrepancy from the defined targetfor secondary materials (3.90kg/product).

In 2003, some 2,258 tons of non-metal-based secondary material(wood, polystyrene, foil, plastic, paperin rolls) were collected, whichrepresents a decrease by 4.7 % com-pared to the year before.

A considerable decrease was estab-lished particularly in the quantity ofwaste wood, where its quantitydecreased by from 709 to 543 tonsor by 23.5 %. The given data speaksfor a growing quantity of reusablepackaging, which may be due also tothe new Slovene legislation regardingnon-recyclable packaging, which cameinto force in 2004.

The absolute quantity of hazardouswaste, produced in 2003, was 502.3tons, which is 27.5 % less than in2002 or 0.18 kg/product. The set target of 0.22 kg/product has thusbeen achieved. Such a good result isamong others the consequence of thereconstruction of the system for dehy-dration of silt at the central wastewatertreatment plant (CWWTP), which isalready in its final stage. The quantityof waste silt was reduced by 160.7tons or by 37.6 % despite an increase in production.

In 2003, the quantities of secondarymetal-based waste did not change.The absolute figure was 11,714.70 ton,which is more than the year before,but due to the increase in output thewaste/product ratio remains the same(4.23 kg/product).

The result of a project approach to themanagement of the generated quanti-ties of metal-based waste as well asincrease in technological discipline

6.8.3.Meeting Environment Protection Implementation Targets

Meeting Environmental Targets in 2003

Aspect unit 1997 1998 1999 2000 2001 2002 Targets Implemented2003 2003

Reduction of the quantity of hazardous waste kg/product 0.55 0.43 0.37 0.30 0.25 0.25 0.22 0.18secondary raw materials kg/product 3.72 3.71 3.99 4.45 4.68 4.23 3.90 4.23waste for disposal kg/product 114 1.06 1.05 1.01 0.75 0.49 0.40 0.44

Effective use of energy resources

consumption of water m3/product 0.56 0.44 0.37 0.30 0.21 0.18 0.17 0.19consumption of power kWh/product 21.41 21.07 21.15 20.82 21.95 21.62 21.60 22.24consumption

of thermal energy kWh/product 24.28 21.74 20.14 15.81 15.05 12.47 12.45 13.28consumption

of compressed air m3/product 21.37 21.41 23.26 21.66 19.49 15.09 15.05 13.45consumption of natural gas Nm3/product 1.93 1.69 1.32 1.16 1.09 1.02 1.00 1.03

reduction of organicsolvent emissions by % / implemented implemented implemented / / / /

reduction ofdust emission by % / / implemented implemented / / / /

reduction of the nickel-content from the CWWTP % / / / / implemented / / /

Natural Gas

Electric Power

Thermal Energy

0.0 1997 1998 1999 2000 2001 2002 2003

Water (m3/product)0.56

0.21 0.18 0.19

0.0 1997 1998 1999 2000 2001 2002 2003

Natural gas (Nm3/product)

1.931.69

1.321.16

1.09 1.02 1.02

20.0 1997 1998 1999 2000 2001 2002 2003

Electric power (kWh/product)

21.0721.15

0 1997 1998 1999 2000 2001 2002 2003

Thermal energy (kWh/product)

21.7420.14

15.8115.05

0 1997 1998 1999 2000 2001 2002 2003

Compressed air (m3/product)

21.37 21.41

21.6619.49

15.0913.45

Compressed Air

variation range, which is defined bythe environment management system.

sumption of compressed air. Other tar-gets were slightly exceeded, but theyremain within the 15 % acceptable

ronmental aspects because of its newinvestments and changes in legislationas well as organisational modificationand management restructuring. Basedon this assessment Gorenje definednew outline goals for the periodbetween 2004 and 2006.

These outline goals are:

requirements of the RoHS directive(to produce appliances, which complyto European regulations regarding thecontent of hazardous substances: toverify the share of hazardoussubstances in products in the light ofEU regulations 2002/95/EC and2003/11/EC, replace components,which include hazardous substances,transfer part of the responsibilityregarding the share of hazardousmaterial also to suppliers),

recycling of waste electrical andelectronic equipment,

reducing the quantity of industrialnon-reusable packaging (reducing thequantity of non-reusable packaging,increasing the share of reusablepackaging, in cooperation withsuppliers eliminate inappropriatepackaging),

The Gorenje, d.d. business plan forthe period between 1998 and 2003included the goal of providing addi-tional activities regarding developmentsupport of the existing businessprocess of environment protection anddeveloping marketing systems in thefield of environment protection. TheGorenje, d.d. company implementedsuch an active development support ofthe existing business process by apply-ing the policy, goals and programswithin the environment managementsystem according to requirements ofthe ISO 14001 standard. Since in2003 a very intensive investment cycleinto production facilities was comple-ted, the steep increase of parametersindicating the reduction of negativeimpact of the household applianceproduction process on the environmentas well as the level of consumption ofnatural resources, became slower. Theimplementation of goals and pro-grams became more and moredependent on employees, which havebeen well trained in the field of envi-ronment protection.

At the end of last year, and in thebeginning of 2004 Gorenje, d.d, per-formed a complete assessment of envi-

6.9.Environment Protection Targets in 2004

The defined targets for 2003 wereattained in the field of reducing quanti-ties of hazardous waste and the con-

reducing the quantity of generatedwaste,

cost-effective use of energyresources.

Requirements of RoHS directive(restriction of use of certain hazardoussubstances in electrical and electronicequipment), as well as requirementsrelated to handling waste electric andelectronic equipment, are met throughrequirements related to the content ofhazardous substances in inbound rawmaterials and product assembly.Gradual reduction of industrialpackaging waste will result in quantityreduction of waste for disposal.

Results obtained though fulfilledtargets for 2004 will be a constituentpart of EMAS Declaration, which willbe published together with the AnnualReport on company businessoperations, expectedly in May 2005.

The implementation targets for 2004 have been prepared according to outline goals:

aspect unit 1997 1998 1999 2000 2001 2002 2003 target2004

Reduction of the quantity ofhazardous waste kg/product 0.55 0.43 0.37 0.30 0.25 0.25 0.18 0.16- secondary raw materials kg/product 3.72 3.71 3.99 4.45 4.68 4.23 4.23 3.90- waste for disposal kg/product 1.14 1.06 1.05 1.01 0.75 0.49 0.44 0.38

Effective useof energy resources- consumption of water m3/product 0.56 0.44 0.37 0.30 0.21 0.18 0.19 0.17- consumption of power kWh/product 21.41 21.07 21.15 20.82 21.95 21.62 22.24 21.90- consumptionof thermal energy kWh/product 24.28 21.74 20.14 15.81 15.05 12.47 13.28 12.45

- consumptionof compressed air m3/product 21.37 21.41 23.26 21.66 19.49 15.09 13.45 14.50

- consumptionof natural gas Nm3/product 1.93 1.69 1.32 1.16 1.09 1.02 1.03 1.00

by the ISO 14001 standard and theEMAS.

We would like to point out that we fulfil all legally stipulated limit valuesfor the following fields: wastewater,emission into the air and noise, specifically defined for our activity.Other above mentioned fields are notlimited by law.

Based on following legal (in the fieldof water emissions, air emissions,waste, noise, packaging, chemicals,rational use of energents, erectingbuildings and protection against natural and other accidents) and other requirements in the field of environment protection, careful environ-mental assessment of the companyoperations, reports on environmentalaudits and accompanying documenta-tion as well as results of inspections,we believe that the operations of theGorenje, d.d. company complies withlegal and other requirements, defined

6.10.Meeting Legaland other Requirements

Contact: Gorenje, d.d.Environment Protection Mrs.Vilma FecePartizanska 123503 VelenjePhone:+ 386 (3) 899 1623Fax:+ 386 (3) 899 2516e-mail:vilma.fece@gorenje.sihttp://www.gorenje.com

Text: Gorenje, d.d.Design and photo: Studio Breg, d.o.o.Photo on page 28: Irena Herak (GV)Printed by: Gorenjski Tisk, d.d.May 2004

EMAS statement was supplementedand validated by SiQin September 2004.

2003 EMAS Environmental Statement 03 -...

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