Atlas Copco manufactures construction and mining equipment such as air compressors, vacuum solutions, air treatment systems, power tools and assembly systems. The company operates through four segments: Compressor Technique, Industrial Technique, Mining and Rock Excavation Technique and Construction Technique. Headquartered in Sweden, Atlas Copco has over 43,000 employees and conducts sales in approximately 180 countries.
Atlas Copco’s equipment is designed to reduce the footprint of industries with significant environmental impacts, such as the construction and mining industries. The company strives to improve the environmental profile and performance of every product by assessing its lifecycle and implementing innovative solutions, such as energy efficiency upgrades that can save up to ten times more fuel than other products. Additionally, 34% of Atlas Copco’s energy consumption comes from renewable resources, and the firm has set goals to reduce CO2 emissions and energy consumption each 20% by 2020. Scrap metal constitutes most of the company’s waste, and nearly all of it is reused or recycled. Atlas Copco also tracks its total water consumption and operations in water-stressed areas and has implemented policies and programs to decrease both. The company is nearing its goal of having all facilities certified according to ISO 14001 standards. To engage local communities and charities, Atlas Copco employees support Water for All, an organization with efforts and donations matched by the company that has already provided clean drinking water for more than 1.5 million people.
Atlas Copco’s corporate social responsibility report lacks trend data or reduction goals for all of its key performance indicators. Additionally, the company has been criticized for a lack of human rights due diligence in relation to a hydropower plant being constructed in Columbia.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.