Management approach

At Electrolux, everything we do and all decisions we make must be governed by the principles of ethics, integrity and respect for people and care for the environment. This affirms our commitment to sound and universal ethical business practices.

Our business model

To achieve our Purpose – to shape living For the Better – and drive profitable growth, Electrolux uses a business model that focuses on delivering best-in-class consumer experiences in taste, care and wellbeing. The objective is to create a steady stream of consumer-relevant innovations under strong brands in key experience areas. We focus on enabling great-tasting food, great care for clothes and healthy wellbeing in the homes of consumers.

Sustainability integrated into our business

Sustainable development is defined as a transformational driver in our business model, as we recognize the growing importance of sustainability performance and reputation – including the impact of our business and products on the planet. Electrolux is acknowledged as a sustainability leader.

As an endorser of the UN Global Compact, Electrolux abides by universal principles, including the environment, labor and human rights through Group codes and policies, both internally and among suppliers. The following tables cover Global Reporting Initiative (GRI) topics that are deemed as being material to Electrolux.

The most relevant topics are integrated into our nine For the Better Promises and our approach and progress are outlined under each related Promise in the Key Priorities and Progress 2018 section. The aspects have been combined if they have a common management approach or policy.

For the Better

Based on our materiality analysis we have developed our sustainability framework - For the Better. Read more about our material sustainability topics, promises and progresses in Key priorities and progress 2018. Here we describe our material sustainability topics, where they occur as well as any relevant boundaries. We also comment on the performance in relation to each of our promises.

Sustainability governance

Our sustainability framework – For the Better – is directly overseen by our Group management and Business Area management teams through various reference groups and steering groups. The legal sustainability reporting as part of the Annual Report is approved by the Board. Group management has also adopted policies concerning Environment, Workplace, and Anti-corruption, while the Board has endorsed the Electrolux Code of Conduct.

Each business area is responsible for contributing to the fulfillment of Group targets under the nine Promises and several of the KPIs are broken down and followed up at business area level.

Group Sustainability Affairs is our expert function that drives the development of our sustainability agenda by supporting sustainability integration throughout operations and monitoring performance. Group Legal Affairs is responsible for implementing our Anti-Corruption Program. The Electrolux global Ethics Helpline (whistleblower function) and Ethics Program are overseen by the Ethics & Human Rights Steering Group.

Policy framework

Evaluation of our management approach

Progress on topics is tracked towards our defined targets. As described in Our materiality process an annual materiality review is undertaken.  Both the scope and focus of the For the Better framework i tested. An annual evaluation of external influences is performed in relation to each promise. Management and effectiveness of promises are defined by how we measure progress. The next steps for each promise define the necesssary actions to reach our targets.

For more information on the effectiveness of the specific actions please see Key Priorities and Progress 2018

For more information on external influences see External influences

For more information on emerging areas of importance see An evolving agenda

Economic

For 2018 information regarding our economic management and reporting practices, see Annual Report: Note 1 Accounting principles. For our work on anti-corruption see Always act ethically and respect human rights

Environment

Electrolux applies a product lifecycle approach to managing environmental impacts, which considers the entire lifecycle – from supplier impacts to transport, manufacturing and use. We also apply the precautionary principle, whereby we act responsibly despite not having the full scientific knowledge of negative impacts, to ensure we stay ahead of potential risks.

Environmental management

Each business area is required to implement an environmental management system throughout its operations, and all operations with over 50 employees are expected to have ISO 14001 certification.

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

Level of ISO14001 certification

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

Social

We support labor rights according to the ILO Core Conventions and the Declaration on Fundamental Principles and Rights at Work, and have an International Framework Agreement with unions that affirms our labor commitments. Our Code of Conduct includes our Human Rights Policy Statement, and how we fulfill these commitments is further detailed in a Human Rights Directive. The Workplace Policy, the Supplier Workplace Standard and the Workplace Directive apply to our operations and our supply chain and include key requirements concerning labor standards.

The report section on Auditing and Monitoring outlines how operations and suppliers meet Group expectations and commitments.