We are creating ever more efficient, high-performance appliances, which help consumers and customers to live better lives, save money and reduce their environmental footprint.
Electrolux will improve the energy and water performance of our appliances, raising the bar for product efficiency around the world.
Tackling climate change by reducing greenhouse gases is one of the greatest, most urgent challenges facing society. At the same time, demand for water is set to increase by as much as 40% by 2030, meaning that a billion more people will live in places where water can no longer be taken for granted.
Efficient appliances can help with these issues, by saving energy and water throughout the lifespan of the appliances. Efficient dishwashers for example are more water efficient than washing dishes by hand. Product energy use is responsible for over 80% of our climate impact, product energy efficiency is where we can make our greatest contribution to tackling climate change.
Product efficiency targets and KPIs are integrated into our product generation planning - supported by an analysis of the regulatory landscape, energy labeling, market position and energy-efficiency improvements. We strive to be a market leader in product efficiency in all our main markets, and we set our product performance targets accordingly. Our individual product efficiency targets are also designed to contribute toward our 50% climate reduction targets.
In our reporting, we measure sales volumes and gross profit from our Green range in main markets compared with our global offering. Our Green Range includes our most energy and water efficient products.
Besides product efficiency innovation, we are also exploring efficiency opportunities related to digitalization and connectivity. For example, the potential for smart appliances to measure consumer behaviour or connect to a smart grid to optimize energy use.
This promise is embedded in the Group's R&D processes through defined targets and KPIs for each major product category where efficiency standards exist. We have a clear follow-up methodology for energy and water performance that allows us to track progress against our goals.
Engaging in dialogue directly with consumers on the value of using appliances optimally and efficiently will help us overcome these challenges.
Electrolux will improve the energy and water performance of our appliances, raising the bar for product efficiency around the world.
| The roadmap to 2020 | Next steps |
|---|---|
| Be a leader in product efficiency in our most important markets by 2020. |
|
| Continue to develop products with good environmental performance, with focus on energy efficiency. |
|
| Continue to drive the market for efficient products through awareness-raising customer and consumer campaigns. |
|
On track
Additional effort is required
Off track
Work has not yet begun
Year on year, Electrolux has demonstrated the value of efficient products. In 2017, the global Green range of our most energy and water efficient products accounted for 19% (19) of total units sold and 28% (28) of gross profit for consumer products. Every year we raise the bar in terms of the criteria used to evaluate the products included in the Green Range.
The profitability and choice of products going to market is determined on the local level, based on energy efficiency requirements and consumer demand. Of our key markets, Europe, the US, Brazil and some Asia-Pacific countries currently have efficiency requirements in place, with varying levels of ambition.
In Europe, which represents 32% of total Group sales, energy efficiency has improved by an average of 3% per year since 2013 (see graph EU Fleet Average below), and Electrolux is well established in the European efficiency market. Our leadership position is also evident in fabric care across markets and for food preservation, both of which are high-volume categories.
Examples of how we have engaged in consumer dialogue during the year include the Ten Stories About Food Waste documentary, and the AEG Care Label project to highlight more sustainable food and laundry practices among consumers. We have also launched the efficient green&clean rack type professional dishwasher, which uses a glass of water to clean each rack, and the Zero Waste All Taste campaigns for Electrolux Professional customers.
Efficiency is a priority across all product categories, and each major category has 2020 targets in place for its markets, as well as indicators to track progress.
The global approach to product design and modularization is crucial for stepping up the level of ambition across product categories. The expenditure for research and development in 2017, including capitalization of SEK 355m (274), amounted to SEK 3,621m (3,372) corresponding to 3.0% (3.0) of net sales.
EU Fleet average
In Europe, Electrolux continuously improved its energy efficiency across three product categories in 2017. The energy index is set at 100% for 2013.
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Video
Electrolux dishwasher runs on a glass of water
