BETTER Operations
Achieve more with less
We are reducing our own footprint by running efficient operations all around the world.
Our promise
Electrolux will continue to reduce its environmental footprint by shifting to renewables, and optimizing the use of energy and other resources throughout its operations.
Read more about our progress on this Promise
Roadmap 2015 to 2020
- Improve energy efficiency at our manufacturing sites and warehouses by 20% by 2020 (baseline 2015), engaging all facilities worldwide.
- Reduce water consumption in manufacturing by 5% every year in areas of water stress, until the site has reached optimal levels of efficiency.
- Attain energy management certification for our operations around the world.
- Increase the proportion of renewable energy for our operations to 50% by 2020.
- Implement a Zero Landfill program at all manufacturing sites by 2020.
The case for action
This promise applies to everything we do. We aim to run resource-efficient operations as an integral part of our work by applying industry-leading practices. This reflects our values and what we stand for as a company – being part of the solution is important for both our employees and consumers.
Our approach
Operational resource management – including energy, water, waste and emissions – is coordinated globally with a common process and strategy wherever in the world we operate.
Resource efficiency management
The Electrolux Green Spirit program is our internal resource efficiency program and rating system that includes criteria related to energy and water performance, management, engagement and implemented actions that are reviewed annually. The program benefits the environment, reduces our carbon footprint and makes financial savings. It drives constant improvement and promotes the sharing and implementation of best practice among manufacturing sites.
In addition, our renewable energy target is tracked on an annual basis and reviewed on a Group level. We are raising our level of ambition with renewable energy sources, such as hydro, solar, wind and biomass. We also learn from existing on-site renewable installations and explore new projects around the world.
Action plans include energy management, technological investments, employee awareness raising and behavioral change. Every facility reports energy and water consumption data on a monthly basis, and this data is aggregated on a regional and global level against monthly performance indicators. We have both relative and absolute targets for energy consumption.
Our Zero Landfill program has the objective to reduce the amount of waste sent to landfill or incinerated without energy recovery. To achieve this, we work to reduce the waste we generate, and identify opportunities for reusing waste materials.
All manufacturing units with over 50 employees must be certified to ISO 14001, and 95% of our factories were certified at the end of 2019. In addition, we are striving to implement the ISO 50001 energy management system at all our manufacturing sites by 2020. At the end of 2019, 58% of our factories were certified.
Challenges
Following over a decade of prioritized investments with good payback periods, it is becoming increasingly challenging to realize new savings with acceptable payback periods.
The progress on our promise
How we measure progress
- Energy efficiency (energy used per unit produced).
- Water efficiency (water used per unit produced).
- Proportion of manufacturing sites with a certified energy management system.
- Proportion of renewable energy.
- Number of factories where the Zero Landfill program is implemented.
Electrolux is implementing a SEK 8bn re-engineering program, which involves modernizing, automating and optimizing its operations at several key facilities. This program is expected to realize annual cost savings of SEK 3.5bn by 2024, and at the same time it will reduce our total manufacturing footprint by reducing our energy, climate, water and waste impacts.
Resource efficiency
In 2019, we improved our energy efficiency per product by 2.7% compared with the previous year and 44% compared to 2005. This was achieved through a continued focus on energy management, technological investments in new equipment, employee awareness and behavioral change, and by implementing best practice throughout our operations. We also introduced technology roadmaps, which will help us to become more action oriented and move faster toward lean operations.
Operational resource efficiency
Our internal Green Sprit program, including our rating and certification system, also continues to be crucial in driving resource efficiency. In 2019, 65% of our facilities in scope achieved top ratings - either Gold or Platinum.
A new certification system, Green Spirit 2.0, will be implemented in 2020. In 2019, we conducted a number of pilots with test audits at selected Electrolux factories. The new certification involves more comprehensive criteria and new themes, such as digitalization, process excellence and electrification.
Efficiency improvements in recent years, together with a shift to renewable electricity, has reduced energy consumed at our manufacturing sites per product by around 44% and absolute CO2 emissions by 75% compared with 2005, which equates to an annual financial saving of over SEK 600m. Over this period, the Group's revenue has increased, which illustrates that Electrolux has decoupled revenue growth from CO2 emissions.
Energy management systems
We have made good progress on implementing the ISO 50001 energy management system, which promotes the more efficient use of energy in our operations. ISO 50001 had been implemented at 58% of Electrolux sites around the world at the end of 2019, and the remaining sites are in the process of certification.
Renewable energy
In 2019, we increased the number of sites that generate a proportion of their own electricity through solar photovoltaic systems. By the end of 2019, Electrolux has its own solar photovoltaic systems at 10 sites in Italy, Thailand, Australia, Mexico, China and Sweden.
In 2019, 26 of our manufacturing sites and several offices in Europe, North America and Brazil procured 100% of their electricity from renewable energy sources, which contributed toward our 50% renewable energy target by 2020. By the end of 2019, over 45% of our total energy purchased was from renewable sources. The shift to renewable energy, together with energy efficiency, has contributed toward an absolute reduction of our CO2 emissions by 65% and CO2 emissions per unit by 60% since 2015.
Climate
CDP, an international non-profit that encourages society to cut emissions, mitigate climate risks and develop a low-carbon economy, included Electrolux in its leadership A- category for our action on climate change.
In 2019, Electrolux launched the Better Living Program, including the objective to make our business circular and climate neutral by 2030. This new target complements our science-based target to reduce our scope 1 and 2 emissions by 80% between 2015 and 2025. Read more about our climate targets.
Water
In 2019, we improved our overall water efficiency by 34% compared with 2015. We made particularly good progress on water efficiency with factories in water scarce regions.
Our water targets are based on the WWF Water Risk Filter, which helps us to identify which of our factories are located in water scarce areas. Decisions around our water targets are based on the tool, and our factories are divided into two groups – Water Risk and Water Management factories. The Green Spirt program involves sharing water management best practices, monthly reporting on water performance indicators as well as conducting water mapping.
Many of our plants recycle process water and some are already closed loop in terms of reusing process water. We are currently investigating opportunities in several other facilities. We also use harvested rainwater in manufacturing processes, such as in Thailand, Brazil and Australia.
In 2019, Electrolux was included in the leadership A- category in the CDP Water questionnaire.
Zero Landfill program
The global Electrolux Zero Waste to Landfill program has been further developed and expanded to all our factories around the world. The aim of the program is to reduce our environmental footprint, find opportunities for material reuse and recycling, and at the same time decrease the amount of waste sent to landfill and/or incinerated without energy recovery.
During 2019, the global program has been applied to all sites and all identified standard indicators have been measured quarterly and followed by the management. The common waste database now includes data from all our factories in a structured approach that follows the 2008 CEE Directive. Our factory in Solaro, Italy, became the second plant to achieve the Zero Waste to Landfill certification issued by a third party. The first one was in Sao Carlos, Brazil.
During the year, we have globally reduced our amount of disposed waste by more than 35%. Our target for 2020 is to ensure that all our factories continue the positive reduction of waste disposed. We aim globally to achieve another 6% improvement and to certify an additional three factories according to our Zero Landfill program.
Total direct1) and indirect CO2 gas emissions by weight. (metric tons)
1) Includes contributions from energy use and greenhouse gas fugitive emissions
Greenhouse gas (GHG) emissions1) intensity
1) Includes contributions from energy use and greenhouse gas emssions
Next steps
| Roadmap 2015 to 2020 | Next steps | Status |
|---|---|---|
| Improve the energy efficiency of manufacturing sites and warehouses by 20% by 2020 (baseline 2015), engaging all facilities worldwide. | Develop annual energy efficiency action plans, set targets and engage employees. | dot2 |
| Reduce water consumption in manufacturing by 5% every year in areas of water stress, until the site has reached optimal levels of efficiency. | Roll out the water best practice list and review the water stress strategy. | dot2 |
| Attain energy management certification for our operations around the world. | Attain global certification for energy management according to ISO 50001. | dot2 |
| Increase our proportion of renewable energy. | Continue to increase the use of renewable energy throughout our operations. | dot2 |
| Implement a Zero Landfill program at all manufacturing sites by 2020. | Ensure more factories embark on the Zero Landfill program and become zero landfill. | dot2 |
The next steps towards 2030 will be announced in the 2020 report.
On track
Additional effort is required
Off track
Work has not yet begun
Electrolux
Electrolux is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent taste, care and wellbeing experiences for millions of people around the world, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our brands, including Electrolux, AEG and Frigidaire, we sell approximately 60 million household products in approximately 120 markets every year. In 2019 Electrolux had sales of SEK 119 billion and employed 49,000 people around the world.
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