Electrolux Group’s long-term ambition is to ensure that its entire value chain is net zero by 2050. This supports the UN Global Compact — Business Ambition for 1.5°C.
In 2018, Electrolux Group was one of the first 100 companies in the world to set a climate target approved by the Science Based Targets initiative (SBTi). Having achieved its 2025 climate target three years ahead of plan in 2022, Electrolux Group got its second science-based target approved in late 2023.
As product energy use is responsible for approximately 85% of Electrolux Group’s climate impact, product efficiency is where the Group can make its greatest contribution to tackling climate change. Electrolux Group is also reducing carbon emissions from its own manufacturing facilities as well as from transportation, materials used in products and business travel.
With this Sustainability-Linked Financing Framework, Electrolux Group has now created a link between the Group’s climate targets and its financing, offering debt investors to be part of the Group’s journey to become a truly sustainable company.
Key Performance Indicators (KPI) and Sustainability Performance Targets (SPT)
The KPIs have been selected as they represent material and direct measures of Electrolux Group’s performance on its strategic climate targets.
KPI/SPT 1
Definition: Reduction of absolute scope 1 and 2 GHG emissions, as approved by SBTi
Target: An 85% reduction of absolute scope 1 and 2 GHG emissions between 2021 and 2030
KPI/SPT 2
Definition: Reduction of absolute scope 3 GHG emissions, as approved by SBTi
Target: A 42% reduction of absolute scope 3, category 1, 4, 6, 11, GHG emissions between 2021 and 2030
The framework has been developed in accordance with the Sustainability-Linked Bond Principles (SLBP), established by the International Capital Markets Association (ICMA) in June 2023, and the Sustainability-Linked Loan Principles (SLLP), established by the Loan Market Association (LMA), the Asian Pacific Loan Market Association (APLMA) and the Loan Syndications and Trading Association (LSTA) in July 2023.
Alignment with SLBP and SLLP has been independently reviewed and evaluated by Morningstar Sustainalytics.
Contacts
- Martin Bendixen, VP Treasury, Tax & Risk Management, martin.bendixen@electrolux.com
- Tomas Dahlman, Head of Climate & Green Financing, tomas.dahlman@electrolux.com