A comprehensive analysis of non-financial risks requires cross-functional insights from Group management, business areas and local facilities.
We focus on the future to prepare for the changing business landscape and mitigate potential risks. The global trends described in the External influences – 2018 and beyond section will impact Electrolux in the coming years. Understanding and managing the non-financial risks and opportunities associated with these megatrends is an integral part of managing our business.
A number of Group functions are involved in identifying and managing non-financial risks in their area of responsibility. These risks are regularly reported to Group management and fed into our materiality process. Read more about how Electrolux manages risk in the Annual Report, Sustainability Reporting.
Evaluates and improves governance, internal control and risk management processes
Benchmarks and monitors key risks in operations and key suppliers
Manages the following risk assessment processes:
Materiality
Responsible Sourcing
Ethics
Human rights
ISO Coordination
Conducts risk assessments related to:
Global Industrial Operations Product Lines
Purchasing
Legal
Finance
Communication
HR Exec Team
Monitors regulatory development in all regions and develops common Group positions
As we better understand how our business impacts human rights, we implement actions and procedures to mitigate them. This ongoing process has made important progress in recent years – through engagement and dialogue with internal and external stakeholders.
We developed a human rights impact assessment methodology in 2016, aligned with the UNGP Reporting Framework, which helped us identify our salient human rights risks at Group level. In 2017, the methodology was used to conduct local human rights assessments in two of our prioritized high-risk countries – Thailand and Egypt.
The human rights assessment involved a review of Electrolux’s most salient human rights issues and their likelihood and potential severity to harm people. These include six specific issues and three business processes, as listed below and in more detail in the related sections.