Taking a value chain approach provides us with a big picture view of how we can most effectively tackle our impacts.
Analyzing our sustainability approach through the lens of our value chain helps identify how we can best leverage our influence and create the greatest value. It makes it easier to identify opportunities, minimize or enhance impacts and understand boundaries. The value chain perspective also helps us recognize how actions and impacts are interconnected.
The graphic below illustrates our degree of influence along major stages of our value chain and provides examples of the value we create. The links under each phase provide context on key impacts and how we tackle them.
High ability to influence
Electrolux allocated SEK 3,210m (2,872m) to R&D, approximately one third of which is sustainability-related. Focus is on energy- and water-efficiency as well as use of materials.
Staying a step ahead of consumer needs on efficiency delivers customer value and aligns with the business strategy.
Medium ability to influence
Electrolux has over 3,000 direct suppliers. All must manage their performance in line with Group sustainability requirements. Focus is on building supplier capacity to maintain our high standards in risk countries.
Promoting universal norms supports human rights and raises environmental, labor and economic standards, especially in low-cost countries. It builds trust and reduces business and reputational risk.
High ability to influence
Electrolux operations – impacting some 60,000 employees – must reflect the qualities of a sustainable business: ethical, efficient and safe.
Communities benefit through jobs, knowledge transfer and economic opportunity. Enhanced competence development, wellbeing and talent retention through positive employee relationships. An estimated SEK 300m less costs incur through lower accident rates.
Medium ability to influence
Electrolux emits more CO2 in transporting its goods than is emitted through the combined energy used in Group operations. About 330,000 tonnes are emitted through the distribution of our goods via ocean, land and air in Europe, North America and Brazil.
As transport is a big contributor to climate change, reducing our impact benefits society. We can use our purchasing power to support the trend towards more sustainable transport and encourage our transport suppliers to engage in dialogue with others on how to further reduce their impacts.
Low ability to influence
Electrolux sells more than 60 million products in more than 150 countries every year. Sales are primarily through retailers. Together with energy and performance labeling, point of purchase’ communications is our bridge to consumer awareness on efficiency.
Working together to increase transparency and promoting a sustainable product offering contributes to retailers' sustainability goals, strengthens brands and builds customer loyalty. As seen by our Green range share of sales, an efficient product offering is a profitable strategy for Electrolux.
Low ability to influence
With the major impacts occurring during product use, product energy efficiency is among our top priorities. Refrigerator and freezer efficiency in Europe improved on average by 3% per year in the last three years.
Appliances deliver social benefits—especially in emerging markets. Providing efficient products in markets with growing middle classes can help counter an increase in the global CO2 footprint caused by increased consumption. Greater efficiency awareness saves energy costs.
Low ability to influence
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).
Helping to reduce landfill. Building closed-loop systems. Saving money and energy and increasing brand trust through innovative designs that reuse materials.