Since some of the Group’s greatest sustainability impacts occur outside our operations, sustainability efforts are increasingly about working with others to address indirect impacts.
Taking a value chain approach provides a big picture view of where impacts occur, which partners to engage and how the greatest value can be created for our stakeholders and our company. This holistic approach makes it easier to identify opportunities, minimize impacts and understand boundaries.
Electrolux allocated SEK 2,872m (2,739m) to R&D, approximately one third of which is sustainability-related. Focus is on energy- and water-efficiency as well as use of materials. Reduction goals for energy, water and chemicals are in place for all major product categories.
Finding ways to scale energy-efficient solutions from premium to mass and making them cost-efficient. Increasing fleet efficiency.
Staying a step ahead of consumer needs on efficiency delivers customer value and aligns with the business strategy.
The company's 3,000-plus suppliers must manage their sustainability performance in line with Group requirements. Audits target those in high- and medium-risk countries, esp. in China, the Ukraine, Eastern Europe, Egypt, Chile and Mexico. Focus is on building supplier capacity to maintain high standards. (Indirect impact).
Growing numbers of suppliers are in countries with less stringent legislation and/or inadequate enforcement. Achieving long-term change among suppliers and building partnerships to realize sustainable innovation.
Promoting universal norms supports human rights and raises environmental, labor and economic standards, esp. in low-cost countries. It builds trust and reduces business and reputational risk.
The Electrolux Foundation sets out the guiding principles: respect & diversity, ethics & integrity, safety & sustainability. The Group's factories, warehouses, offices and close to 60,000 employees must be managed accordingly. (Direct impact)
Integrating acquired operations. Engaging staff in sustainability goals, embedding sustainability fully in all sectors and achieving consistency across the organization.
Communities benefit through jobs, knowledge transfer and economic opportunity. Enhanced competence development, wellbeing and talent retention through positive employee relationships. Energy reductions of SEK 375m (300m) a year in cost savings compared to 2005. Reduced costs through lower accident rates.
Electrolux is partnering with logistics suppliers to improve transport efficiency. Logistics makes up about 1% of the product lifecycle CO2 footprint. (Indirect impact)
Transport will increase due to product volumes. Accurate data collection on CO2 emissions is still not standardized. Increasing rail, intermodal and sea transport.
As transport is a big contributor to climate change, reducing its impact benefits society. As a transport buyer, Electrolux can help drive change in the logistics industry.
Legislation on appliance recycling is being introduced in key markets. In Europe—the region with the most comprehensive producer responsibility legislation—80% of major appliances has to be recovered (70% for small appliances).
Promote the introduction of market incentives for Design for Environment. Partnering with retailers and NGOs to raise awareness. Making better use of modularization.
Reduced landfill. Building closed-loop systems. Innovative designs that reuse materials, save money and energy and increase brand trust.
With the major impacts occurring during product use, product energy efficiency is the top priority. Refrigerator and freezer efficiency in Europe improved on average by 3% per year in the last three years. (Indirect impact)
Helping consumers understand the value of high sustainability standards. Raising awareness on the role energy use in households has in reducing climate impact.
Appliances deliver social benefits—especially in emerging markets—provided their CO2 footprint shrinks. Greater efficiency awareness saves energy costs.
Retailers are the bridge to consumer engagement. Along with energy and performance labeling, partnerships help consumers make the switch to sustainable products. (Indirect impact)
Ensuring point-of-sales personnel have the right tools to raise awareness, and encouraging more consumer market incentives for sustainable products.
Working together to increase transparency and promoting a sustainable product offering contributes to retailers' sustainability goals, strengthens brands and builds customer loyalty. The Green range represented 13% of sold products and 25% of gross profit in 2014.