Performance review: People and operations (Ethical business)

• More fully integrate sustainability into business strategy.

• Board informed on strategy, priorities and approach.
• Group management involved in defining carbon reductions strategy.

• Ongoing.

• Engage employees in sustainability objectives and build an understanding of the value Electrolux creates.

• Introduced the Purpose – To make a positive everyday difference in people’s lives and for the planet.
• Developed a workshop to make the Purpose relevant to local markets and each individual.

• Voluntary Purpose workshops will be held across the company in 2013.

Core values –

Embedding a common set of values throughout Group processes and training.

• Integrate a common values system among all employees.
• Integrate core values into Talent Management processes, including performance appraisals.
• Implement the Electrolux Leadership Model.

• Conducted a 2012 Employee Engagement Survey (EES) among all white-collar workers. Response rate: 85%.
• Piloted an EES survey among workers at three factories across Group operations.
• Integrated recommended areas of improvement, based on findings from the 2010 Employee Engagement survey.
• Global induction program includes references to core values.
• Launched the internal People Leadership Award to promote leadership capability and best practice sharing to engage employees.
• Values and policies workshops conducted in the Ukraine and Egypt (2011), and cascaded throughout their organizations.

• Full Employee Engagement Survey to be conducted again in 2014.
• Expand target group for EES to factory workers.
• Ongoing work with core values.
• Further improve corporate culture by focusing on office and factory working environments.
• Further improve the quality of competence development.
• Further improve the implementation of the Electrolux Leadership Model in leadership programs.

• Develop a program to inform all employees about policies for business ethics.
• Inform employees of policies as well as practices that help develop sound judgment on the acceptance and offering of gifts and events.
• Develop a system where all employees can report potential issues.

• European rollout of the Ethics program in seven European countries.
• Approximately 75% of Group employees have access to confidential reporting helplines located in Europe, North and Latin America.
• The new Antitrust policy and guidelines were launched. The Anticorruption policy and guidelines were re-launched.
• Live training on antitrust and anticorruption took place for selected 1,400 employees in all regions.

• Continue rollout of the program across all markets and among all employees.
• Global roll-out of Ethics at Electrolux will be complete by 2014.
• Update Code of Conduct to reflect the UN Guiding Principles and findings of the HR impact assessment.
• Complete live training with the remaining 600 selected employees in all regions in 2013.

• Uphold principles of the Code of Conduct, especially in regions with higher risks from human and labor rights perspectives.

• Conducted Group human rights impact assessment as per UNGP.
• 18 (14) of 28 (29) plants in risk-defined regions were audited for Code of Conduct and environmental compliance by combined teams from Electrolux and third party representatives.

• Ongoing.
• Establish continuous human rights management, built on practices already in place.

• Operate 25% of EMS facilities at manufacturing industry best practice levels by 2015, with the end-goal of zero accidents company-wide.
• Be regarded as leader in the appliance industry sector for safety performance.

• The total case-incident rate is at 1.1 and decreased by 10% (42), while workdays lost due to injuries increased by 36%  (-36).
• Achieved the 2015 goal for EMS facilities.
• 216 injuries were recorded.
• Roll-out of the “Safety Management System” in all business areas, with the exception of Professional.
• Launch of the 100 days without an accident program. EU factories within EMS– 70% reached 200 days in 2012.
• Integrate CTI and Olympic factories in Group performance reporting.
• Define methodologies for office safety and wellbeing.

• Integrate Olympic and CTI in 2015 target.

Minimum 2013 EMS targets:

· Sites with TCIR greater than 1.0: 10% reduction.

· Sites with TCIR less than 1.0: 5% reduction.

• A safety management system will be fully adopted in 2013.
• 100 days: global goal is to achieve 100 accident-free days by end-2013.
• 2013 TCIR goal of 0.87 for CTI and Olympic. By 2015, 0.7 (industry benchmark).
• Introduce a group-wide measure “First Aid Incident Rate” (FAIR)
• Office safety activities at business area headquarters.
• A global provider for ISO and OSHAS certification will monitor performance among Group factories.

Respect and diversity – Development of an innovative culture with diverse employees in terms of cultural backgrounds and gender.

• Create teams that better reflect consumers in the Group’s markets.
• Focus more on gender equality, especially with the objective of raising the share of women in senior management teams.

• The workforce consists of 32% (36) female employees, while 20% (20) of senior management positions are held by women.
• Supported local joint business diversity initiatives in key Group markets such as initiatives through engagement in AIESEC.
• 48 (38) AIESEC trainees were hosted by Electrolux, 26 (18) of whom were female. The global retention rate for interns  is currently 50%.

• Ongoing

Diversity objectives: By 2015, increase female representation:

• In Tier 2 positions: 25%
• In combined Tier 2 and 3 positions: 30%.