Home
Menu Download Search
Annual Report 2014 CEO statement Sustainability governance Strategic priorities Performance and progress Snapshots GRI & UNGC

Performance review:
People and Operations

As part of its sustainability approach, Electrolux communicates objectives, progress on priorities of each of its strategic pillars, and the next step for 2015 and beyond

Focus area

Objective / challenge

2014 performance

Next step

Operational Efficiency

  • Reduce the Group’s energy use by implementing a medium-term relative reduction target for energy consumption in operations by 15% by 2015, baseline 2011.
  • Lower the Group’s carbon emissions.

  • Completed an action plan for 2015 for energy-efficient processes.
  • Realized a 5.1% relative improvement in energy use, indicating a significant rise in production efficiency in comparable factories. In absolute terms the Group decreased energy use by 3.4%.
  • Achieved energy cost savings in 2014 of more than SEK 375m compared to 2005.
  • Emitted approximately 200,000 tonnes of CO2 less annually compared to 2005 (including acqusitions).

  • Implement the 2015 energy action plan.
  • Detail an investment strategy for energy efficient equipment and processes.
  • Set a new energy target for 2020, baseline 2015.

Operational Efficiency

  • Reduce carbon emissions from the transportation of goods.
  • Define measuring methods that allow comparing CO2 impacts from transportation.

  • Enabled development of new baseline for target through improved transport carbon data accuracy.

  • Share experience and best practice between the regions on e.g. tender requirements, fill rate improvement, and product packaging.
  • Roll out low carbon procurement stipulations to more suppliers.

Operational Efficiency

  • Reduce emissions from ocean shipments.
  • Achieved more than 25% improvement in carbon efficiency between 2010 and 2014 in ocean transportation.
  • Set annual target to reduce the relative emissions from logistics by 3%.
  • Participate in BSR Clean Cargo Working Group in line with the 2015 action list.

Operational Efficiency

  • Develop water management targets for all factories.
  • Set a water target for factories in potential water risk areas.

  • Achieved a 20% water reduction target two years ahead of schedule. The target was set for 2014 against a 2010 baseline. By 2014 the saving was more than 40%.
  • Carried out monthly follow up of progress towards the target and implementation actions.
  • Share  experience and best practice.
  • Set new water management target.

Operational Efficiency

  • Understand success factors and establish conditions for cooperation with suppliers on energy management.
  • Integrate suppliers’ energy use into Electrolux reporting.
  • Increased regular reporting to more than 70% (60%) of the Group’s OEM supplier spend on energy consumption.
  • At present, supplier energy consumption is not integrated into the Group’s external reporting of energy use.
  • Include supplier achievements in 2015 energy reporting.

Ethical business

  • Involve employees with the Purpose – the company’s aim beyond financial and market objectives.
  • Engage employees in sustainability objectives and build an understanding of the value Electrolux creates.
  • Continued roll-out of voluntary Purpose workshops to local markets and each individual. Over 4,200 employees took part by year-end 2014.
  • Further evolve the Purpose program to embed it in Group culture.

Ethical Business

  • Establish an ethics program based on the Code of Ethics and related policies.
  • Inform employees about ways to apply policies in practice.
  • Launched program in South Africa and the Netherlands.
  • Rolled out ethics e-learning program in Asia.

  • Introduce the Ethics program in remaining countries.
  • Deliver educational campaigns in Group Policies.

Ethical Business

  • Develop a system enabling all employees to report potential concerns.
  • Developed an internal whistle-blowing processes for investigation and reporting.
  • Maintain awareness of, and trust in, the Ethics Helpline through internal communication.

Ethical Business

  • 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.
  • Achieved a 2% increase in the share of women in Tier 2 positions (to 22%).
  • Matched the share of women in Tier 3 positions compared to 2013 (25%).
  • Equaled the workforce share of 33% (32%) female employees.
  • Increased the proportion of women on the Board of Directors. Of its nine members, three are women.
  • Pursue ongoing diversity objectives: By 2017, increase female representation:
    • In Tier 2 positions: 25%

    • In Tier 3 positions: 30%

Ethical Business
  • Integrate common values among all employees.
  • Integrate core values into Talent Management Process, including performance appraisals.
  • Implement to Electrolux Leadership Model. 
  • Conducted Employee Engagement Survey (EES) among production and non-production employees across the Group, with 77% and 88% response rates respectively.
  • Teamship launched at top management meeting 2014 and incorprated as an index in the 2014 EES.
  • Industrial Relations Strategy introduced to Leadership Teams.
  • Conduct EES annualy, starting 2015 (previous frequency every 18 months).
  • Teamship workshops offered to employees in all regions. 
  • Teamship Awards to be launched in each sector. 
  • Launch training on Industrial Relations Strategy, in tandem with Code of Conduct roll-out.

Human and Labor Rights

  • Implement Code of Conduct (CoC) and monitor performance.
  • Uphold principles of the CoC, especially in regions with higher risks from human and labor rights perspectives.
  • Received formal approval of the updated Code of Conduct.

Human and Labor Rights

  • Provide training around the Code of Conduct.
  • Conducted introductory sessions with Sector Leadership Teams in the Code of Conduct.
  • Developed educational materials.

  • Carry out educational campaign of the Code of Conduct and Industrial Relations.

Human and Labor Rights

  • Monitor and audit performance against the Code of Conduct.
  • Completed ALFA assessment of manufacturing units, based on the updated CoC and Workplace Standard.
  • Audited 12 plants in high. risk countries for Code of Conduct compliance.
  • Launch new audit procedure based on the updated Code of Conduct.

Health and Safety

  • Ensure global  approach  to health and safety (H&S) management and behavioral change.
  • Operate 25% of Major Appliances facilities at manufacturing industry best practice levels by 2015, with the end-goal of zero accidents company-wide.

  • The Global case incident rate (TCIR) is at 0.9 and  and decreased by 10% while workdays lost due to injuries decreased by 46%.
  • Total injuries recorded were 401 within the Group, 283 of these were within Major Appliances.

  • Minimum 2015 Major Appliances targets:
    • Achieve not more than 5 out of 38 factories with TCIR greater than 1.0.
    • Reach a 5% reduction in factories with TCIR less than 1.0.
  • Fulfill TCIR goal of 0,66 (0.87) for Major Appliances facilities.

Health and Safety

  • Be regarded as a leader in the appliance industry sector for safety performance
  • Continued the roll-out of the “Safety Management System” in all business areas, with the exception of Professional facilities.
  • Expanded current program to ‘150 (100) days without an accident’.

  • Carry out full assessment of the safety management system in all Major Appliances factories by the OHS global team.
  • Achieve global goal of 150 consecutive accident-free days by end 2015.
  • Define and follow up a FAIR target for each factory.

Health and Safety

  • Incorporate new acquisitions in OHS performance reporting.
  • Integrated Chilean and Egyptian factories in Group performance reporting.