MANAGEMENT APPROACH
Electrolux applies a product lifecycle approach to managing environmental impacts, taking into account all phases of a product’s life from supplier impacts through to transport, manufacturing and product use.
For 2014 achievements and future objectives, see performance reviews for Products, markets and services, People and operations (Efficiency) and Stakeholders and society (Responsible sourcing), the latter covers work with suppliers.
During 2014, the focus was on:
Electrolux Sustainability Affairs, a Group staff function, is responsible for driving and monitoring environmental performance group-wide, as well as public disclosure. It co-ordinates environmental reduction targets at the operational level as well as carbon emissions relating to transportation.
The Electrolux Manufacturing System (EMS) is a program to implement lean production that covers global manufacturing facilities for both major and small appliances. In addition, EMS is used for monitoring and eliminating waste and increasing safety and quality within production processes.
The Green Spirit program is an integral part of the EMS. Objectives are set to continuously reduce resource consumption, waste and emissions. The Green Spirit initiative includes energy management, technological investments, employee awareness raising and behavior change. Energy-saving targets are implemented in offices, factories and warehouses through the program.
Each business sector is required by Group Management to implement an environmental management system throughout its operations. The global certification program is described in Auditing and monitoring A total of 46 factories underwent ISO14000 audits and today, 94 % of applicable operations are certified according to ISO14001.
| 05 | 06 | 07 | 08 | 09 | 10 | 11 | 12 | 13 | 14 | |
| ISO 14001 certification | 91 | 91 | 95 | 92 | 94 | 96 | 93 | 92 | 91 | 94 |
The share of factories with more than 50 employees that have certified ISO14001 environmental management systems.
Green Spirit focuses on environmental performance improvement and employee engagement. Electrolux continues to focus on energy use and carbon emissions in manufacturing. Both relative and absolute targets have been set. As part of the Group’s 2020 50% carbon reduction target, a series of shorter-term energy-saving targets have been specified for factories, offices and warehouses. Each facility gathers energy and water consumption data and reports on a monthly basis to Sustainability Affairs where data is collated. A waste target is under development.
Green Spirit information points in facilities keep employees up to date on progress against targets. Suggestions from employees for environmental improvement are encouraged and rewarded.
Electrolux has monthly meetings to report performance and share best practice among the different sectors. In addition, in 2014, the Group held its first global Green Spirit conference with participation from all regions and sectors. External corporate climate change leaders and experts were also invited to share their experiences.
Electrolux has developed and implemented its own energy management certification system, called Green Spirit Certification. Each Electrolux site is evaluated annually on performance criteria including energy performance, energy management and implemented actions. Sites are given a grading from zero to four stars, depending on the outcome of the evaluation.
Criteria for attaining Green Spirit certification levels are raised annually. For example, a factory aiming for three stars today must pass new requirements to maintain its three star status in the upcoming year.
During 2014, the focus of Green Spirit across the Group was on working towards the target to reduce energy use by 15% by 2015, based on 2011 production volumes.
Electrolux is making excellent progress towards its 2015 energy reduction target and in 2014 the Group achieved a 15% relative improvement in comparable factories making finished products compared to 2011. During the year the Group decreased its energy use by 3.4% in absolute terms.
The average energy consumption per unit produced in comparable factories decreased by 22% during the last 5 years.
Annually, improved energy efficiency saves more than SEK 375m in energy costs and results in 200,000 tonnes lower carbon dioxide emissions compared to 2005.
Work will also continue on reducing emissions from transport and water use as described in the transport and water sections below.
Energy use and the resulting CO2 emissions are the highest priorities for resource efficiency. As part of the sustainability strategy, Electrolux is reducing its CO2 impact and engaging in climate-related issues. During 2014 Electrolux was included in CDP’s (formerly known as Carbon Disclosure Project) index for Transparency, the Climate Disclosure Leadership Index.
Material use is collated on a site-by-site basis during the annual environmental performance assessment, a process used to track operational environmental management and compliance around, for example materials, waste and chemicals. The site manager is responsible for sending data to Sustainability Affairs.
Electrolux continues its support of the UNGC Water Mandate. Its Communication on Progress is included in this GRI report.
Electrolux defined a reduction target for water use of 20% by 2014, using 2010 as a baseline. This was achieved two years ahead of schedule, and by 2014 the saving was more than 40%. Water consumption in factories is managed under Green Spirit, using the same approach as the energy-savings target to compile and share water data across the Group. Performance is monitored on a monthly basis through the Green Spirit program.
Together with WWF, Electrolux has mapped water-related risks associated with Group factories. As a result, more stringent targets have been set for factories in areas of high water risk. Electrolux engages with local authorities on issues such as water availability in regions where production facilities are located. Water availability is a local issue and raising awareness among employees is an important part of achieving water reductions.
The Green Spirit program engages employees in local savings initiatives. Electrolux operations will continue to increase investment in innovation for water-efficient products and improve its processes in the area of assessing and monitoring water management.
Continuous improvement in water management is outlined as an expectation in the Workplace Standard and Environmental Policy and is mandatory for all suppliers.
All hazardous waste (oils, solvents and other chemicals) is managed in accordance with local regulations.
Biodiversity management is in general not deemed a material issue for the Group. Biodiversity issues are managed locally. Group-wide general guidelines as outlined in the Workplace Standard describe the methodology that should be applied in issues such as biodiversity. Two facilities were adjacent to protected biodiversity areas in 2014, Solaro in Italy and Revin in France, whose ownership was transferred during the year. Electrolux monitors all its facilities for emissions and no significant impacts on biodiversity have been identified.
Through the Workplace Standard, Electrolux requests that all suppliers measure and monitor their energy use. Electrolux rolled out its energy-reporting standard, based on GRI criteria, among OEM (original equipment manufacturing) and ODM (original design manufacturing) suppliers. At present, supplier energy consumption is not integrated into the Group’s external reporting of energy use.
During 2014, Electrolux collected data from approximately 70% of the Group’s OEM supplier spend on their environmental performance. In 2015, the share is expected to rise to 80%. During 2015, OEM suppliers will be asked to report on water usage for the first time, after completing a water risk mapping exercise according to the WWF water risk methodology.
During 2014 Electrolux developed its strategy for carbon efficient transportation. The implementation of the group-wide system for gathering and tracking transport data continued. Information collected by sectors is reported to Group level for monitoring. A new target of to reduce transport emissions by 3% between 2014 and 2015 was set.
The Electrolux Global Ocean Team has partnered with Business for Social Responsibility’s Clean Cargo Working Group to standardize calculations for emissions on ocean-going cargo and drive CO2 reductions from ocean shipments. Overall Electrolux achieved improved carbon efficiency of more than 25% between 2010 and 2014 in its ocean transportation.
Group emissions from transport in 2014 were approximately 410,000 tonnes of CO2, slightly lower than the previous year. This is mainly due to improved filling rates and efficiency measures in the supply chain.
As a first step in reducing the CO2 impact of transportation, a group-wide system for gathering and tracking transport data is partially implemented for Electrolux main markets. A new annual target for 2015 has been set.
Sustainability Affairs is responsible for aligning and promoting the climate change agenda for Electrolux with key stakeholders, while Business Sectors work to raise the awareness of the role of energy and water-efficient appliances in reducing consumers’ carbon footprint.
Electrolux is setting product targets as a part of the objective to be the sustainability leader in our industry. Product efficiency is considered to be one of the most important contributors to meeting our target of reducing carbon emissions by 50% by 2020,
Energy efficiency targets are set as a result of a process that includes inputs from existing and anticipated product regulation as well as data about competitors on the market. This data is used together with knowledge about options for product development to set targets for planned product development. The objective is to occupy the first or second position for energy efficiency in each market, for each product line and in each consumer segment.
At the outset, the target will apply to products within the kitchen, laundry and small appliances ranges. As methodologies evolve, Electrolux will extend the target to more products and regions.
During 2014 Electrolux piloted a reporting platform in Europe that combines product based sales and sustainability data. It will enable more comprehensive product efficiency information sharing. Similar platforms for North America and Australia will be developed during 2015.
Each business sector within Electrolux promotes its range of water- and energy-efficient products. Electrolux raises the bar for products qualifying for the Green Range on a yearly basis. The criteria are based on environmental parameters defined by the Group to reflect regional market need.
The company’s designers are trained on the Product Management Flow, which includes an integrated sustainability analysis tool to ensure that potential sustainability issues are addressed in product development. Information is shared and responsibility for sustainability is assigned to the Project Manager.
Electrolux is preparing for stricter legislation worldwide for chemicals, energy efficiency limits and producer responsibility for recycling of appliances.
REACH is an EU regulation on the registration, evaluation, authorization and restriction of chemicals. Electrolux sees REACH as a tool for ensuring safe products, safe production and environmental protection.
The EU F-Gas Regulation came into force on January 1st 2015. It includes cap and phase-down of HFCs availability on the market and restrictions for higher global warming potential F-Gases in some applications. As part of its 2020 Carbon Target, Electrolux will phase out high global warming potential gases in advance of the restrictions within this Regulation.
In 2014 Electrolux set up a global chemical office to better co-ordinate and manage chemicals use across the Group. This includes developing a global system for the collection and management of information from suppliers on chemical content in products to facilitate compliance with existing regulation such as REACH, on F-gases and forthcoming regulation on conflict minerals. This system will also facilitate the management of Electrolux requirements for chemicals on the Electrolux Restricted Materials List.
During 2014 Electrolux rolled out its carbon target. The Group has the objective to cut its CO2 impact by 50% by 2020 relative to 2005 production levels. Approximately 25 million tonnes will be cut in emissions deriving from product use, use of high global warming potential greenhouse gases, in production and in transportation.
To achieve its carbon target on an on-going basis, Electrolux is:
In 2014 workshops were held with the leadership teams of Business Sectors, Staff functions and with Group management to further align and integrate sustainability themes into the business including the carbon target.
The implementation of the carbon target activities will continue during 2015.
The Group’s most relevant climate-related issue is the energy needed by consumers using Electrolux products. To achieve its new carbon target, Group products must be among the leaders in energy efficiency in each product segment and market. The Group aims to expand the market for energy-smart products by influencing consumer purchasing through marketing, communications and public policy work. See Next Back and A game-changing vacuum cleaner.
Eliminating greenhouse gases used in products with a global warming potential higher than 15 is a key part of the target. During 2015 a road map will be developed to phase out gases with high global warming potential that are used as blowing agents for insulation in refrigerators as well as refrigerants for cooling and air care.
The Group’s approach to green product innovation and design is outlined further under Products and services.
Target achievement in factories is monitored by Group Sustainability Affairs and reported to management and through the Electrolux Manufacturing System (EMS). Leaner manufacturing is an important aspect of the sustainability strategy. The Green Spirit’s 2020 program is to reduce energy consumption by more than 50%.