Materiality – Mapping priorities

The materiality process helps Electrolux keep track of how stakeholders perceive Group performance.

Material issues are significant factors that influence the business strategy and how Electrolux manages and reports on sustainability. Based on a previously identified universe of issues, these were the topics identified as most relevant in the 2012 materiality process.

From a universe of approximately 50 issues, Electrolux has identified 27 as material to its business. The issues that are actively managed within the sustainability strategy are identified above. The remaining material issues plotted on this graph include product safety, strategic partnerships, producer responsibility and enabling work life/balance that are ongoing areas of focus for doing business well or are features that define benefits of Electrolux products.


Products, services and markets

The majority of the issues listed in this strategy pillar scored as material, with greater importance attached to rising middle classes, minimum efficiency standards and phase-out of hazardous substances and greenhouse gases.

Overall, stakeholder feedback was positive on how Electrolux manages its products’ environmental impacts. Conflict minerals is an emerging issue that Electrolux will address going forward.

People and operations

A number of issues have risen in importance, including expectations on human rights performance. This is in part due to the introduction of external standards such as UN Guiding Principles on Business and Human Rights into corporate frameworks, as well as increased Group presence in high-risk regions. Issues around freedom of association and compensation are expected to arise in future among suppliers and within Group operations.

New materiality aspects of a strategic nature include value creation, integration of sustainability into the business and aligning new operations to Group standards.

Environmental management continued to be a key material issue and an area in which stakeholders rated Electrolux highly, as seen in the company’s CDP, DJSI and Climate Counts rankings. Expectations increased in 2012 on management of waste and transport.

Stakeholders and society

Responsible sourcing remains an area of significance. Expectations are high for transparency, accountability and dialog, which Electrolux considers a prerequisite for maintaining sustainability leadership.

Although there was limited stakeholder interest in how restructuring is managed, this is considered a strategic priority for the company, and crucial that the process uphold the Foundation values of ethics, integrity and respect.

Efficient refrigerators in China

Based on the theme "Limited space, more possibilities", the innovative OuYu, multi-door refrigerator in China was developed to meet the demand for well-designed and energy-efficient products. In 2012, it won Sina Digital Billboard's Best Home Appliance Award as voted by customers, journalists and industry opinion leaders.