Case study: How Miele is developing and manufacturing energy efficient products

What are the material issues the company has identified?

In its 2015 Sustainability Report Miele identified a range of material issues, such as product safety, longevity and reliability, employee satisfaction, compliance with social and ethical standards, pollution-free products. Among these, as the company takes an all-encompassing approach to developing durable products, designing all of its appliances to deliver top performance and superior results while using as little energy, water and chemicals as possible, developing and manufacturing energy efficient products stands out as a Miele’s top material issue.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Miele engages with:

How stakeholder engagement was made to identify material issues

As part of an expert stakeholder survey conducted in financial year 2013/14, 22 experts from the economic, scientific and political fields, as well as from non-governmental organisations (NGOs) and media, were invited to offer their assessments. In a second, publicly conducted survey, Miele asked 600 customers and 25 dealers and retailers for their input. Both surveys were intended to evaluate relevant topics and assess Miele’s sustainability performance.

The internal perspective on relevant sustainability topics was determined in a survey of 39 managerial staff members and plant managers and also in special workshops involving employees in positions of accountability in relevant areas of the company, such as production, human resources, purchasing, quality and environmental management and outbound logistics.

A comparison of the internal company perspective with that of the external stakeholders allowed Miele to create an updated materiality matrix, which provided increased clarity regarding the relevance of the individual topics. Using this updated matrix, it was then possible to illustrate where the identified and prioritised sustainability issues were relevant on the value chain – be it inside or outside the company. The results showed that the topics considered most relevant by the external stakeholders were also viewed as vital to the company’s long-term success from an internal standpoint.

What actions were taken by Miele to develop and manufacture energy efficient products?

In its 2015 Sustainability Report Miele set the following targets for developing and manufacturing energy efficient products, based on the company’s approach to materiality – on taking action on what matters, where it matters:

• Increasing the energy efficiency of Miele’s domestic appliances

In the reporting period, a number of measures and developments contributed to a continued increase in the energy efficiency of Miele’s domestic appliances. In business year 2013/14, 63 percent of all Miele washing machines produced for EU countries were rated in the highest energy efficiency class (A+++). This figure had been at 54 percent in business year 2011/12 and the resulting change was equal to a 17-percent increase. Today (as per 11/2015) all washing machines from the new generation to which energy labelling applies are in the top A+++ category, exceeding the required level by up to 40 percent (depending on the model). A large part of the energy-efficiency improvement in the Miele product portfolio was due to the introduction of the new “PowerWash” washing system (2013) and the enhanced “PowerWash 2.0” (starting in 2014). The innovative system features an additional water pump that soaks laundry faster and more effectively. This in turn shortens programme cycle times, reduces the amount of water used in the main washing process and, as a result, also lowers energy consumption. This allows PowerWash appliances to outperform the class A+++ limits by up to 40 percent (depending on the model) – with programme cycle times under three hours. The introduction of the new energy label for dryers in early 2013 has made it possible to more accurately differentiate dryers in terms of their energy consumption. For Miele, this means that the 57 percent of its appliances with an A+ rating under the old label in financial year 2012/13 increased to a much higher 70 percent in financial year 2013/14 with the advent of the new label. Miele has also enhanced the energy efficiency of its dishwashers. In financial year 2011/12, 22 percent of the company’s dishwashers were rated in the A+++ class, with that number growing to 30 percent in 2013/14. This was equal to a 22-percent increase. The percentage of Miele dishwashers in the A++ class remained unchanged. Positive trends were also noticeable for Miele’s refrigeration products. In financial year 2013/14, 67 percent of all models were rated in either the A++ or A+++ energy efficiency classes. Both of these segments showed growth: the amount of A+++ models grew from 3 percent in 2011/12 to 8 percent in 2013/14, while the proportion of models with an A++ rating increased from 35 percent to 59 percent over the same period. Overall, Miele was able to increase the amount of washing machines, dishwashers and refrigeration products produced in the top two energy efficiency classes (A++ and A+++) by 28 percent in the reporting period. The internal target for dryers manufactured for the European market was an A+ rating on 60 percent of all models. At 73 percent by the close of financial year 2013/14, Miele actually exceeded this mark by a clear margin.

• Increasing the energy efficiency of Miele’s commercial appliances

Miele’s Professional division, whose product lineup includes commercial appliances manufactured for use in medical facilities and laboratories, made further consumption-related improvements to its machines in 2014. Fully demineralised water from Miele disinfection appliances, which are used to reprocess surgical instruments, for example, is collected in a tank and can then be reused in Miele’s large-capacity cleaning units (for containers and transport trolleys). Depending on the number of cleaning cycles, this can provide substantial energy and water savings. In 2013, Miele launched a new generation of commercial freshwater dishwashers to market. The special feature of these appliances is that, unlike tank-based dishwashers, they use fresh water for each new washing cycle (the freshwater system is the more economical option when less than 40 washing cycles are performed per day). Depending on the programme selected, these new machines can use up to 50 percent less electricity than the previous models – while delivering the same cleaning excellence.

• Equipping Miele’s appliances with “Eco-friendly functions”

All of Miele’s appliances come equipped with a number of “Eco-friendly functions”, which give users the option of saving additional energy and can thus help to reduce resource consumption. For example, Miele is an industry leader in the area of automatic detergent dosing, a technique that can significantly reduce the amount of detergent used. In 2006, the company presented LiquidWash, the world’s first dosing system for liquid detergent. In 2010, Miele then introduced AutoDos, the world’s first automatic dosing system for liquid and powder detergents. At the 2013 IFA consumer electronics trade fair, Miele unveiled its TwinDos, the first fully-integrated automatic dosing system that can also be used with whites and heavily soiled laundry. This technology is possible in conjunction with Miele’s two detergents “UltraPhase 1” (for removing grease and protein stains) and “UltraPhase 2” (for removing tough spots), which are dispensed in consecutive programme segments by the TwinDos system. TwinDos uses up to 30 percent less detergent, as verified in 2013 by the independent Oeko-Institut, the European Institute for Applied Ecology. Alternatively, TwinDos can also be used to dispense conventional liquid or powder detergents and fabric conditioners through the classic detergent dispenser. With the EcoFeedback function, which was first introduced by Miele in 2010, users can track current consumption statistics for their washing machine and also change them by selecting a different programme. EcoFeedback predicts the level of water and electricity consumption even before the user starts the selected programme. It shows the estimated consumption levels in the form of bar diagram on the appliance display. This allows users to easily recognize that a programme with longer cycle times or lower temperatures will require less energy, for example. Once the programme has finished, the actual consumption levels are displayed in kilowatt hours and litres. EcoFeedback is a product feature that has been very well received. Of all washing machines (front loaders) sold in the private customer segment in 2013/14, 39 percent (more than one-third) were equipped with the EcoFeedback function. Miele AllWater washing machines also offer significant potential savings, since they can be used with both service water or hot water. To make this possible, the appliances are equipped with two water connections. The use of an existing hot water supply can result in energy savings of up to 43 percent – as confirmed by the Oeko-Institut in Freiburg in 2008. AllWater appliances have been part of Miele’s product lineup since 1993 and have been continuously updated to keep pace with each new series. Miele places great importance on communicating these product features to consumers in advertisements, user manuals and personal consultations in order to promote resource-friendly user behaviour and appeal to consumers’ concern for the environment.

• Introducing energy-intelligent domestic appliances and smart home applications

Miele is the industry pioneer when it comes to networking domestic appliances with other home technology components and the Internet. In the 1990s, the company introduced the first mobile status updates for domestic appliances with the Miele InfoControl. InfoControl made it possible for users to determine the remaining cycle time on a washing machine located in the cellar via a mobile hand-held transmitter, for example. In subsequent years, Miele introduced additional applications for greater comfort, safety and energy efficiency. This group of applications is now referred to as Miele@home. At the 2010 IFA trade fair, Miele introduced the first washing machines and dryers to feature smart grid compatibility. One year later, the company introduced a smart grid-ready dishwasher. Within a preset timeframe, these appliances automatically switch on (“Smart Start”) when energy suppliers offer economical electricity rates or when a particularly high amount of renewable energy is available on the electrical grid. Unfortunately, the necessary infrastructure, e.g. the electric meters required for variable-rate billing (“smart meters”), still only exists in pilot projects and on newer buildings, where smart meters have been mandatory since 2011. Despite this, Miele has been working with the solar technology group SMA to market its smart technology since 2012. In this case, a private photovoltaic system (PV system) takes the place of the smart electrical grid, while still automatically checking online weather forecasts for smart operation. The “Smart Start” occurs when the PV system is able to provide enough energy. This application promotes the use of renewable energy, increases private energy consumption and lessens the load on electrical grids, all while lowering electricity costs – since the private consumption of user-produced energy is ultimately more economical than obtaining energy from the grid. In order to promote new ideas in home appliance networking, Miele has been involved with Deutsche Telekom’s Qivicon Home Management Platform as a founding member since 2011. Qivicon is a cross-industry networking solution which offers a large number of applications for greater comfort, security and energy efficiency. Since 2014, owners of Miele domestic appliances have been able to download the Miele domestic appliance app from the Qivicon portal. This app allows users to control their appliances and check the status from any desired location. It is truly a useful application. Ever wonder whether the cooker at home is actually switched off after leaving the house for work? With a smartphone and the Miele app, users can make sure that the situation is under control when they’re on the go. RWE Effizienz GmbH, a Miele systems partner since 2013, also offers a similar application that includes an app for controlling domestic appliances. Both of these network platforms received the “Security-Tested Smart Home Product” distinction from the AV-TEST Institut in 2014. The AV-TEST Institut is a leading independent provider of security services and anti-virus research in the global IT market. Miele’s international product lineup includes approximately 400 network-capable domestic appliances. These appliances are ready to be networked, which means that they require additional communication components that are easily installed in virtually all cases. For the applications mentioned above, one communication module and one central gateway are required per machine. The communication both between individual appliances and with the gateway is based on a wireless standard, so that no cables need to be routed through the building. The use of solar power generated in the home makes domestic appliances sustainable and cost-effective. With the introduction of its solar-powered tumble dryer in September 2011, Miele unveiled a product which set a new standard for energy-efficient drying in laundry care. To dry clothing and linen, this appliance uses hot water that is generated by a solar-thermal array and stored in a stratified tank from Solvis. The system functions by feeding the heated water from the stratified tank (a component in the home’s water-heating system) to the dryer. Heat exchangers convert the energy stored in the water into hot air for the drying process and return the cooler water and condensate to the storage tank. Because the circulation system connecting the solar-powered dryer and the storage tank is closed, there are minimal losses in the system. The costs of drying with Miele’s solar-powered dryer are roughly 50 percent lower than when using a heat pump dryer and can be as much as 80 percent lower when compared with a condenser dryer. An added benefit of the solar-powered dryer is that it helps to ensure that the capacity of the building’s solar array is fully utilized in the summer months. In 2013, Miele’s solar-powered dryer received the GreenTec Award, one of Europe’s most prestigious environmental awards.

Which GRI indicators/Standards have been addressed?

The GRI indicators/Standards addressed in this case are:

1) G4-EN7: Reductions in energy requirements of products and services – the updated GRI Standard is: Disclosure 302-5 Reductions in energy requirements of products and services

2) G4-EN27: Extent of impact mitigation of environmental impacts of products and services

3) G4-PR3: Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant products and service categories subject to such information requirements – the updated GRI Standard is: Disclosure 417-1 Requirements for product and service information and labeling

References:

1) This case study is based on published information by Miele, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

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