Sustainability leadership is crucial to realizing the Group's strategy. Electrolux can grow profitably while simultaneously contributing to society by making smarter and more resource-efficient solutions accessible to an increasing number of people around the world. The objective is to steadily become better at meeting people's needs and improving their daily lives in a sustainable way. The Group’s sustainability priorities target nine main areas that combined will contribute to: Better solutions, Better operations and a Better society.
Electrolux can best contribute to remediating the climate change issue through its products. The Group is cutting its CO2 impact by 50% by 2020 relative to 2005 levels. Approximately 25 million tonnes of CO2-equivalents will be cut in emissions deriving from product use, from production and transportation as well as from the use of greenhouse gases. As of 2015, 14 million tonnes have been cut.
-50%
CO2 2020
-25
million tonnes
* Calculated as the avarage of eleven different appliances.
The sustainability priorities of Electrolux are a result of dialogs with internal and external stakeholders. Emerging issues are continuously monitored and the impact on business is assessed.
The global market for household appliances is growing. Meeting this demand without further impact on the environment requires more effective use of such resources as raw materials, water and energy.
The global market for household appliances is growing. Meeting this demand without further impact on the environment requires more effective use of such resources as raw materials, water and energy.
As a global company, Electrolux affects millions of people – customers, suppliers and local communities. Electrolux strives to create a positive impact by collaborating to meet local needs and promote improvements.
Electrolux offers a Green Range comprising the most resource-efficient products. In 2015, the Green Range products represented 20% of products sold and 32% of gross profit. One example is the AEG ÖKOKombi washer dryer that extends the lifetime of clothes and is also very energy and water efficient, consuming 40% less energy compared to other washer dryers that are rated A for energy efficiency.
Materials used in household appliances comprise primarily steel, plastic and electronic components. The main contribution that Electrolux can make toward greater resource efficiency is to increase usage of recycled materials and support initiatives for recycling electronic products. In 2015, Electrolux used over 50% more recycled plastics than in 2014.
The Electrolux competence center for chemicals established in 2014 continues to develop processes to phase out hazardous material. New scientific findings and stakeholder requirements are used to regularly update the restricted materials list (RML).
Electrolux has a responsibility for every employee. Effective health and safety routines rank among the most important things that Electrolux can offer its employees. The Group’s global incident rate (TCIR) was 0.9 in 2015. Since 2005, the incident rate has been reduced by 72%. The estimated cost reduction for injuries with lost days was more than SEK 300m in 2015, compared with 2005 based on historic data.
Energy and water consumption in production is significantly less than when the products are used, but high priority is still given to streamlining the use of resources. Efficient use of resources also has benefits in terms of cost savings. Targets are set to continuously reduce resource use through the Green Spirit program, an integral part of the Electrolux Manufacturing System. In 2015, Electrolux completed the third Green Spirit round. The relative energy consumption was reduced by 18% since 2011 in comparable plants surpassing the target of 15%. The new target is a 20% improvement in energy efficiency at plants and warehouses by 2020 compared with 2015.
Across the world Electrolux operations are based on a shared foundation: respect, diversity, integrity, ethics, safety and the environment. The Group has a global ethics program encompassing both training and a whistleblowing system – the Electrolux Ethics Helpline. In 2015, the first groupwide training program for the updated Code of Conduct was launched, and over 10,000 employees participated in e-learning.
As a global company, Electrolux can contribute to a faster transfer of technology to new growing markets. Resource-efficient solutions improve the lives of people and keep the environmental impact as low as possible. Zanussi’s LINDO washing machines and tumble dryers are examples of highly energy-efficient (A+++) products intended for the mass market.
Through the Group's global reach and local presence, there are opportunities to make a positive difference, benefiting the local communities, Electrolux employees and the business. One such example is Electrolux Professional’s cooperation with the WorldChef initiative. Electrolux Centers of Excellence are offered for workshops that educate chefs on the importance of incorporating sustainable practices.
Regardless of where the Group’s products and components are manufactured, it is done with respect for people and the environment. This responsibility expands with the proportion of sourcing in growth markets. As part of our responsible sourcing efforts, Electrolux carried out 427 supplier audits in 2015, and 180 staff members from 80 suppliers received training in the Electrolux Code of Conduct and other relevant sustainability issues. As a signatory of the UN Global Compact, Electrolux is committed to promoting the ten principles covering human rights, labor standards, the environment and anti-corruption across its value chain.