Sustainability Report 2019

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Sustainability In Brief

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Ongoing dialogue with stakeholders helps us define and deliver on our promises and keep ahead of global developments.


Our Promises require improvements throughout our value chain, from sourcing to end-of-life. Consequently, we cannot deliver on our ambitions alone – and engagement with customers, consumers, employees, shareholders, suppliers, industry peers and NGOs is crucial for us to deliver our sustainability framework For the Better.

Sustainability Affairs oversees dialogue on sustainability-related issues with a wide range of internal and external groups. Feedback from this dialogue is reported to Group management and feeds into our decision-making to strengthen our strategy and response. An ongoing challenge is to systemize local stakeholder dialogue to ensure that local voices are heard.

Stakeholder priorities and our response

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Consumers

Consumer choices drive our business, and consumer behavior shapes our sustainability performance

How Electrolux engages with consumers

  • Bi-annual customer brand scorecard survey on sustainability in various markets.
  • Customer surveys in key markets to understand perceptions on sustainability.
  • Better Living Program Report about consumer attitudes and challenges related to sustainable living.

Consumers shape our sustainability approach

  • We have developed a Better Living Program communications platform to engage consumers (and employees) on sustainability topics.

Customers

Our sustainability work must align with customer values to optimize business benefit for Electrolux

How Electrolux engages with customers

  • Partnerships with specific customers. Sustainability engagement is becoming more long-term and strategic.
  • Ongoing engagement with customers and key stakeholders to share learnings and discuss sustainability and our products.
  • Feed the Planet partnership with Worldchefs.

Customers shape our sustainability approach

  • Collaboration in areas such as chemicals handling and recycled materials. We discuss criteria and evaluate our process for supply chain monitoring.
  • Customer insights contribute to raising market awareness on the importance of efficient products.

Investors

ESG investors drive our sustainability agenda forward

How Electrolux engages with investors

  • In response to significant growth in ESG (Environmental, Social and Governance) investment, Electrolux engages with investors and shareholders on sustainability topics during regular meetings and investor dialogues.
  • Eight of our ten largest shareholders are signatories to the UN Principles for Responsible Investment. 

Investors shape our sustainability approach

  • Investor feedback helped shape our new sustainability framework - the For the Better 2030 - by providing their input on the relative importance of different sustainability topics to Electrolux.
  • We have enhanced our reporting and activities on CO2 reduction through our disclosure to CDP.
  • We developed a Green Bond framework in alignment with the Green Bond Principles 2018, with projects eligible for funding defined to support the UN Sustainable Development Goals and the Paris Climate Agreement.

Employees

Our sustainability work helps to motivate, retain and attract employees

How Electrolux engages with employees

  • Ongoing dialogue between management and employee representatives and unions. Topics include updates on restructuring plans, feedback on business development, audit outcomes, human rights assessments, our Ethics Helpline, and Health and Safety performance.
    Read more in our Promise Always act ethically and respect human rights.
  • The Employee Engagement Survey gathers employee perceptions and feedback on our sustainability agenda.
    Read more in our Promise Always act ethically and respect human rights.
  • We identify talented potential employees by being a key supporter of AIESEC, the world’s largest student organization and an international platform for young people to explore and develop their leadership potential.
  • We arrange crowdsourcing events for our employees to contribute toward our sustainability work.

Employees shape our sustainability approach

  • We integrate employee perceptions into strategic and operational activities on a local, market and Group level.
  • Our global intranet also allows employees to influence our sustainability agenda. Each month, 20,000 non-production employees access the global intranet featuring global articles, local news, presentations and films on sustainability related issues published systematically during the year. Through interactive features, our employees can comment on these materials, publish their own information and create a dialogue on ongoing and new projects. Production employees have access to information via a smartphone app and their voices are heard through other face-to-face channels.
  • We continue to develop our strategic partnership with AIESEC and our employees through our Feed the Planet activities, with a particular focus on promoting sustainable food habits as part of local and global projects.
    We also focus on finding talented women we can recruit within the areas of Science, Technology, Engineering and Mathematics (STEM) together with AIESEC, as part of our Global Engineer Program.
  • In 2019, we invited our employees to a global digital crowdsourcing event where they could suggest initiatives for our new sustainability framework - the Better Living Program. Some of these ideas were selected by the Electrolux management to shape our Better Living Program.

Suppliers

Working with suppliers is crucial to implementing our sustainability framework – For the Better

How Electrolux engages with suppliers

  • During our Responsible Sourcing and Quality auditing and assessment work, we regularly dialogue with suppliers to understand the topics of greatest importance and concern to them. Our regular regional Supplier Sustainability Days provides further such opportunities, also providing suppliers possibilities to share best practice with their peers.
  • Our annual global Supplier Award Day, when we celebrate our most innovative and efficient key suppliers, allows these suppliers to connect with top management and key functions, to share their ideas and priorities. The 2019 theme was sustainability. 
  • We share best practice in transport management with the logistics industry. Electrolux is a member of the U.S. Environmental Protection Agency-led SmartWay, with a commitment to reduce road transport-related emissions, and Clean Cargo focusing on reducing impact in sea transport.

Suppliers shape our sustainability approach

  • Supplier expert knowledge, and co-innovation together with suppliers help improve our sustainability performance in for example product energy and water efficiency, circularity and to reduce the environmental footprint of our operations. 
  • Electrolux engages with key Original Equipment Manufacturers (OEMs) on topics such as energy and water management, sharing tools and internal and external knowledge.
  • As part of the BSR Clean Cargo initiative, Electrolux logistics suppliers must be BSR members.
  • We continuously evaluate the environmental performance of our logistics suppliers.

Industry peers

Benchmarking and sharing best practice ensure we continue to be an industry leader

How Electrolux engages with industry peers

  • We conduct competitor analyses.
  • Shared best practice on setting stretch targets for renewable energy.
  • Shared best practice on human rights, including at the Nordic Purchasing Strategy Forum and the Swedish Network on Business & Human Rights.

Industry peers shape our sustainability approach

  • Extensive competitor analyses and best practice information was gathered to shape our new sustainability framework - For the Better 2030.
  • Many of our Promises illustrate that we are an industry leader in terms of sustainability.
  • We exchange best practice with other industry leaders.

NGOs, academia and governmental initiatives

Cooperation with NGOs, academia and governmental initiatives ensures we remain up to date with key sustainability topics

How Electrolux engages with NGOs, academia and governmental initiatives

  • We engage with experts on human rights and labor rights – including advocacy groups, local representatives of international organizations, academia and embassies.
  • Electrolux engages with the European Environmental Bureau on energy efficiency and labeling.
  • We present our strategy to increase the use of recycled plastic in our products at various multi-stakeholder events and meetings.

NGOs, academia and governmental initiatives shape our sustainability approach

  • Input from these stakeholders is a crucial part of our materiality analysis.
  • Input to our public policy initiatives in Europe on labeling.

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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.

S:t Göransgatan 143

SE-105 45 Stockholm, Sweden

Terms & Conditions 2019