Management approach

The Electrolux Foundation, the Group’s operational values, affirms the corporate culture and commitment to sound and universal ethical business practices. They are defined as ethics, integrity, respect, diversity, safety and the environment. As an endorser of the 10 principles of the UN Global Compact, Electrolux aligns management of the environment, labor and human rights with the Foundation through Group codes and policies, both internally and along the supply chain.

The following tables cover GRI aspects that are deemed material to Electrolux operations. The most relevant aspects are integrated into the Nine ‘For the Better’ Promises and our approach is outlined under each related promise in other areas of this report, most notably under Performance. Aspects have been clustered if they have common management approach, policy.

Economic

For 2015 information regarding economic management approach and reporting practices, see Accounting principles and Market information. Financial objectives are presented in Mission - financial goals.

Environment

Policies and governance

The Electrolux Environmental Policy outlines how Electrolux intends to improve environmental performance in production and product use, as well as how to design products for disposal. A description of how to meet expectations in our own operations and among suppliers is available in the Workplace Standard.

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. We also apply the precautionary principle —where we act responsibly despite not having the full scientific knowledge of negative impacts — to ensure that we stay ahead of potential risks, such as in managing chemicals.

Each business area is required by Group Management to implement an environmental management system throughout its operations. All operations with 50 employees or more are expected to have ISO14001 certification.

Auditing and Monitoring outlines how operations and suppliers meet Group expectations and commitments.

ISO 140001 certification

2011

2012

2013

2014

2015

100

Download SVG Download PNG

	2011	2012	2013	2014	2015
Procent of total	93	92	91	94	96

The share of factories with more than 50 employees that have certified ISO14001 environmental management systems.

Environment

Aspect	Policy, governance and commitments	Responsibility & resources	Training and specific actions
Materials	Outlined in the Code of Conduct and Workplace Standard.	Responsibility lies with each business area. Data is supplied by local operations for annual reporting.	Included in Code of Conduct training, and function-specific training.
Energy, emissions and water	Outlined in the Code of Conduct and Workplace Standard. The Green Spirit program focuses on environmental performance improvement and employee engagement, covering offices, manufacturing sites and warehouses. Local objectives are set to reduce energy consumption and water, aligned with Group goals. Green Spirit certification has its own energy management certification system, where criteria for attaining certification are raised annually.	Responsibility lies with each business area. Local facilities provide monthly reports on energy use. As outlined in Promise 4.	Electrolux continues its support of the UNGC Water Mandate.
Effluents and waste	Outlined in the Code of Conduct and Workplace Standard. All hazardous waste (oils, solvents and other chemicals) is managed in accordance with local regulations.	Responsibility lies with each business area. Local facilities supply data for annual reporting.
Products and services	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.	Responsibility for improving product efficiency lies with each business area and status is monitored by top management. Each business area is responsible for raising awareness of the role of energy- and water-efficient appliances and for promoting our range of efficient products. A reporting platform combines product based sales and sustainability data. It enables comprehensive product efficiency information sharing. As outlined in Promise 1.	Designers are trained to ensure that potential sustainability issues are addressed in product development through an integrated sustainability analysis tool.
Compliance	N/A	Responsibility lies with each business area; best practice is exchanged between sectors and public affairs functions.	We are preparing for stricter legislation for chemicals, energy-efficiency labeling producer responsibility for recycling of appliances, and for legislation relating to the circular economy and phase out of HFCs.
Transport		Responsibility lies with each business area. The goal is monitored and coordinated through Sustainability Affairs function. As outlined in Promise 9.	All shipping suppliers must be a member of Business for Social Responsibility’s Clean Cargo Working Group to standardize calculations for emissions. Initiated strategic partnership with Maersk Line to improve sustainability performance of shipping transport.
Supplier environmental assessments	Outlined in the Code of Conduct and Workplace Standard. Code of Conduct compliance is mandatory and non-negotiable parts of evaluating potential and existing suppliers. Workplace Standard, outlines that OEM and ODM suppliers must measure and monitor their energy use and report it through the energy-reporting standard. As of this year, they must report on water impacts as per WWF’s Water Risk Filter.	Responsibility lies with each Business Area’s Sourcing Board, with support of the Responsible Sourcing Team and Sustainability Affairs. As outlined in Promise 9.	Approximately 80% of direct suppliers report on their energy use. At present, supplier energy consumption is not integrated into the Group’s external reporting of energy use. Applied WWF’s Water Risk Filter to help map locations at risk of water stress.

Social

We support labor rights as set out by the ILO Core Conventions and the Declaration on Fundamental Principles and Rights at Work. We have an International Framework Agreement with the global unions, affirming our commitments in this area. The Code of Conduct and Workplace Standard apply in equal measure to Electrolux operations and along the supply chain.

Auditing and Monitoring outlines how operations and suppliers meet Group expectations and commitments.

Labor practices, human rights and society

Aspect	Policy, governance and commitments	Responsibility & resources	Training and specific actions
Investment	Human rights screening is part of acquiring new operations.	Responsibility lies with each business area line management, supported by Group Legal and Sustainability functions.	This was the case in the purchase of a new Professional manufacturing site in China this year.
Non-discrimination, child labor, forced or compulsory labor	Specified in the Code of Conduct and Workplace Standard. As outlined under approach in Promise 6.	Responsibility lies with each unit’s line management, including communicating requirements within their unit through training and annually assessing the unit’s performance.	Group-wide Code of Conduct training was launched in 2015. Code of Conduct compliance is reviewed and discussed with employee representatives on an ad hoc and annual basis. Dialogue covers outcomes of Code of Conduct assessments and internal audits, an overview of cases reported through the Ethics Helpline and general improvement areas.
Occupational health and safety	Specified in the Code of Conduct and Workplace Standard. A Safety Management System is in place, covering all manufacturing facilities. Each facility has developed a plan to contribute to the group-wide goal. The overriding aim is to prevent injuries and environmental incidents from occurring in the first place.	The Global Industrial Operations safety team defines goals, monitors progress, shares best practice and implements the monthly recording system and daily incident reports, thereby aligning production groups, regions and by product line. As outlined in Promise 5.	Ongoing local workshops and training on safety procedures, reporting systems and certification programs. Global Safety Day, designed to engage employees in manufacturing, where ‘best performing’ and ‘most improved’ regional facilities are recognized.
Training and education	One of three focus areas of the People Plan is Learning organization. The backbone of the company’s training and education program is built on the 70-20-10 model. 70% of learning is achieved through challenging assignments and on-the-job experience, 20% of learning is developed through relationships, networks, and feedback and 10% of learning is delivered via formal training processes.	Responsibility lies with each unit’s line management, supported by each business area and Group HR functions.	On average, white-collar employees in EMEA, Latin America and Asia Pacific received 17 hours of training.
Employment, Diversity and equal opportunity	Specified in the Code of Conduct and Workplace Standard. A component of the Business Strategy, the People Plan highlights 3 priorities, among them: to be a high performing learning organization and increase the ratio of internal talents. Appointment of Senior Managers Policy, the Recruitment and Internal Transfer Policy, and the Grandparent principle—all designed to ensure fair and transparent hiring practices—as well as the Compensation Policy and Pension. As outlined in Promise 6.	Senior Vice President of Human Resources sets the People Plan, and owns HR-related policies. Implementation—including for remuneration—is managed through sectors. As part of the Talent Planning process for the Top 200 positions, opportunities for promoting women are constantly reviewed.	Through appraisal talks and talent reviews we evaluate our people and focus on their development. The annual Employee Engagement Survey measures employee engagement and their perceptions on equal opportunities and diversity. We are piloting an initiative to increase the share of women in R&D positions.
Labor & management relations	Specified in the Code of Conduct and Workplace Standard. Industrial Relations Strategy. The International Framework Agreement, signed together with the Swedish trade unions IF Metall, Unionen and IndustriAll, informs our strategy. In it, Electrolux and key unions underline the Group’s commitment to maintain the same standards in all the countries where it operates, specifying core ILO conventions.	Primary responsibility for realizing the strategy locally lies with the country and local line organizations, supported by HR Country Managers and the Group Industrial Relations function. Best practice is shared across regions through the HR country manager network.	Dialogue with international unions such as IndustriAll and IF Metall, learnings from experiences in emerging markets and engagement with investors informed the strategy process. Specialized training on the strategy for line managers is ongoing. Code of Conduct training for employees includes guidance on employee rights for freedom of association.
Supplier assessment for labor practices and human rights	Specified in the Code of Conduct and Workplace Standard. Code of Conduct compliance is mandatory and non-negotiable parts of evaluating potential and existing suppliers. As outlined in Promise 9.	Responsibility lies with Sourcing Boards in each region, with support of the Responsible Sourcing Team.	As of 2015, supplier candidates are required to outline their capabilities and performance in labor, human rights, and environmental management. Electrolux employees in key positions in procurement receive training on the requirements of the Code of Conduct.
Security practices	Specified in the Code of Conduct and Workplace Standard. A new Security Program was developed in 2015, covering selection criteria for security providers, requirements for security guards, and incident reporting.	Primary responsibility for fulfilling the Code and Security Program locally lies with unit line management, supported by the Chief Security Officer.	The program – including internal inspections and Code of Conduct audits in the supply chain – will be implemented during 2016. Included in Code of Conduct training.
Grievance mechanisms for labor practices, human rights.	In line with Group Policies, we have made available a confidential reporting mechanism – the Ethics Helpline. Employees can report misconduct confidentially and anonymously (where legally permitted) without fear of negative consequences. It can be accessed by 98% of our employees. Suppliers can report possible non-compliances through the Code of Conduct mailbox. As outlined in Promise 6.	Accountability for the grievance mechanism lies with the Ethics Steering Group, comprising representatives from Group Management. Trained investigators are assigned to the cases and responsible for the investigations, in line with our principles of confidentiality and integrity. Most cases relate to abusive or discriminatory behavior.	A grievance mechanism was introduced for Electrolux suppliers.
Anti-corruption, anti-competitive behavior	Specified in the Code of Ethics, Policy on Corruption and Bribery, Policy on Antitrust and the Code of Conduct. As outlined in our Promise 6.	The Corporate Legal department is the owner of the policies on corruption and bribery, and anti-trust, with responsibility for communication and follow up. Management Assurance and Special Assignments (MASA), conducts investigations into reported cases of corruption. The Ethics at Electrolux program, including the Ethics Helpline, is a cross-functional initiative, led by Sustainability Affairs together with Human Resources, Group Legal and (MASA) through the Ethics Steering Group.	We apply a risk-based approach to training relating to corruption and bribery, targeting training in the policy to those working in sales, marketing and procurement. E-learning on anticorruption and anti-trust were launched in 2015 and includes training and information on these issues to all employees.
Public policy	Specified in the Code of Ethics. Employees of European Affairs are members of the Society of European Affairs Practitioners (SEAP). They have signed its Code of Conduct and taken part in its training program.	Responsibility for establishing contacts with their respective policy-makers lies with each business area. Public policy initiatives are primarily conducted through industry organizations such as the European Appliance Industry Association (CECED) and the American Home Appliance Manufacturers Association (AHAM).	2015 agenda: Europe: Revision of the energy label legislation, Circular economy: Including product durability, recycling and availability of spare parts. North America: Phase out of HFC

Aspect

Policy, governance and commitments

Responsibility & resources

Training and specific actions

Investment

Human rights screening is part of acquiring new operations.

Responsibility lies with each business area line management, supported by Group Legal and Sustainability functions.

This was the case in the purchase of a new Professional manufacturing site in China this year.

Non-discrimination, child labor, forced or compulsory labor

Specified in the Code of Conduct and Workplace Standard.

As outlined under approach in Promise 6.

Responsibility lies with each unit’s line management, including communicating requirements within their unit through training and annually assessing the unit’s performance.

Group-wide Code of Conduct training was launched in 2015.

Code of Conduct compliance is reviewed and discussed with employee representatives on an ad hoc and annual basis. Dialogue covers outcomes of Code of Conduct assessments and internal audits, an overview of cases reported through the Ethics Helpline and general improvement areas.

Occupational health and safety

Specified in the Code of Conduct and Workplace Standard.

A Safety Management System is in place, covering all manufacturing facilities.

Each facility has developed a plan to contribute to the group-wide goal. The overriding aim is to prevent injuries and environmental incidents from occurring in the first place.

The Global Industrial Operations safety team defines goals, monitors progress, shares best practice and implements the monthly recording system and daily incident reports, thereby aligning production groups, regions and by product line.

As outlined in Promise 5.

Ongoing local workshops and training on safety procedures, reporting systems and certification programs.

Global Safety Day, designed to engage employees in manufacturing, where ‘best performing’ and ‘most improved’ regional facilities are recognized.

Training and education

One of three focus areas of the People Plan is Learning organization.

The backbone of the company’s training and education program is built on the 70-20-10 model. 70% of learning is achieved through challenging assignments and on-the-job experience, 20% of learning is developed through relationships, networks, and feedback and 10% of learning is delivered via formal training processes.

Responsibility lies with each unit’s line management, supported by each business area and Group HR functions.

On average, white-collar employees in EMEA, Latin America and Asia Pacific received 17 hours of training.

Employment, Diversity and equal opportunity

Specified in the Code of Conduct and Workplace Standard.

A component of the Business Strategy, the People Plan highlights 3 priorities, among them: to be a high performing learning organization and increase the ratio of internal talents.

Appointment of Senior Managers Policy, the Recruitment and Internal Transfer Policy, and the Grandparent principle—all designed to ensure fair and transparent hiring practices—as well as the Compensation Policy and Pension.

As outlined in Promise 6.

Senior Vice President of Human Resources sets the People Plan, and owns HR-related policies. Implementation—including for remuneration—is managed through sectors.

As part of the Talent Planning process for the Top 200 positions, opportunities for promoting women are constantly reviewed.

Through appraisal talks and talent reviews we evaluate our people and focus on their development.

The annual Employee Engagement Survey measures employee engagement and their perceptions on equal opportunities and diversity.

We are piloting an initiative to increase the share of women in R&D positions.

Labor & management relations

Specified in the Code of Conduct and Workplace Standard.

Industrial Relations Strategy.

The International Framework Agreement, signed together with the Swedish trade unions IF Metall, Unionen and IndustriAll, informs our strategy. In it, Electrolux and key unions underline the Group’s commitment to maintain the same standards in all the countries where it operates, specifying core ILO conventions.

Primary responsibility for realizing the strategy locally lies with the country and local line organizations, supported by HR Country Managers and the Group Industrial Relations function.

Best practice is shared across regions through the HR country manager network.

Dialogue with international unions such as IndustriAll and IF Metall, learnings from experiences in emerging markets and engagement with investors informed the strategy process.

Specialized training on the strategy for line managers is ongoing.

Code of Conduct training for employees includes guidance on employee rights for freedom of association.

Supplier assessment for labor practices and human rights

Specified in the Code of Conduct and Workplace Standard.

Code of Conduct compliance is mandatory and non-negotiable parts of evaluating potential and existing suppliers.

As outlined in Promise 9.

Responsibility lies with Sourcing Boards in each region, with support of the Responsible Sourcing Team.

As of 2015, supplier candidates are required to outline their capabilities and performance in labor, human rights, and environmental management. Electrolux employees in key positions in procurement receive training on the requirements of the Code of Conduct.

Security practices

Specified in the Code of Conduct and Workplace Standard.

A new Security Program was developed in 2015, covering selection criteria for security providers, requirements for security guards, and incident reporting.

Primary responsibility for fulfilling the Code and Security Program locally lies with unit line management, supported by the Chief Security Officer.

The program – including internal inspections and Code of Conduct audits in the supply chain – will be implemented during 2016.

Included in Code of Conduct training.

Grievance mechanisms for labor practices, human rights.

In line with Group Policies, we have made available a confidential reporting mechanism – the Ethics Helpline. Employees can report misconduct confidentially and anonymously (where legally permitted) without fear of negative consequences. It can be accessed by 98% of our employees.

Suppliers can report possible non-compliances through the Code of Conduct mailbox.

As outlined in Promise 6.

Accountability for the grievance mechanism lies with the Ethics Steering Group, comprising representatives from Group Management.

Trained investigators are assigned to the cases and responsible for the investigations, in line with our principles of confidentiality and integrity. Most cases relate to abusive or discriminatory behavior.

A grievance mechanism was introduced for Electrolux suppliers.

Anti-corruption, anti-competitive behavior

Specified in the Code of Ethics, Policy on Corruption and Bribery, Policy on Antitrust and the Code of Conduct.

As outlined in our Promise 6.

The Corporate Legal department is the owner of the policies on corruption and bribery, and anti-trust, with responsibility for communication and follow up. Management Assurance and Special Assignments (MASA), conducts investigations into reported cases of corruption.

The Ethics at Electrolux program, including the Ethics Helpline, is a cross-functional initiative, led by Sustainability Affairs together with Human Resources, Group Legal and (MASA) through the Ethics Steering Group.

We apply a risk-based approach to training relating to corruption and bribery, targeting training in the policy to those working in sales, marketing and procurement.

E-learning on anticorruption and anti-trust were launched in 2015 and includes training and information on these issues to all employees.

Public policy

Specified in the Code of Ethics.

Employees of European Affairs are members of the Society of European Affairs Practitioners (SEAP). They have signed its Code of Conduct and taken part in its training program.

Responsibility for establishing contacts with their respective policy-makers lies with each business area.

Public policy initiatives are primarily conducted through industry organizations such as the European Appliance Industry Association (CECED) and the American Home Appliance Manufacturers Association (AHAM).

2015 agenda:

Europe:

Revision of the energy label legislation,
Circular economy: Including product durability, recycling and availability of spare parts.

North America:

Phase out of HFC