Electrolux applies a product life-cycle approach to managing environmental impacts. Factories, warehouses and offices have processes in place to manage risks and integrate environmental priorities.
Each business area is required by Group Management to implement an environmental management system throughout its operations. The environmental management system is built on the Environmental Policy, Workplace Standard, the Group’s guidelines on how to meet Electrolux sustainability-related codes and policies, and ISO14001 certification. All manufacturing units of over 50 people must be certified to ISO 14001, and newly acquired units are required to complete the certification process within three years of acquisition. 96% of applicable operations are certified according to ISO14001 .
Electrolux Sustainability Affairs, a Group staff function, is responsible for driving and monitoring environmental performance Group-wide, and public disclosure. It co-ordinates environmental reduction targets at the operational level as well as carbon emissions relating to transportation.
The Electrolux Manufacturing System (EMS) is a program to implement lean production that covers global manufacturing facilities for major appliances and floor care. In addition, EMS is used for monitoring and eliminating waste and increasing safety and quality within production processes.
Green Spirit is an initiative focused on environmental performance improvement and employee awareness raising. Energy saving targets are implemented in offices, factories and warehouses through the program. During 2010, the focus on water and transport was sharpened, and reduction targets were set as part of the Green Spirit initiative.
Goals and performance
For 2010 achievements and future objectives, see both performance reviews for Climate Challenge and Responsible Sourcing (for work with suppliers).
Materials
Material use is collated on a site-by-site basis during the annual Environmental Performance Assessment. The site manager is responsible for sending the data to Sustainability Affairs. Continuous improvement in reducing material use is driven through ISO 14001.
The volume of recycled materials in Floor Care’s Green Range grew 190% between 2008 and 2010. Today, Electrolux Floor Care is the only manu-facturer using recycled plastics at this great a scale.
Energy
Electrolux employs a three-part climate strategy:
- Innovating and promoting efficient products
- Raising awareness of the importance of energy-efficient products
- Reducing energy use in operations
The Group’s most relevant climate-related issue is the energy needed by customers using Electrolux products. The Group aims to expand the market for energy-smart products by influencing consumer purchasing through marketing, communications and public policy work. The Group’s approach to green product innovation and design is outlined further under Products and Services.
The Group participates in dialog with lawmakers and authorities to promote financial incentives to stimulate the market for energy-efficient products and product innovation.
Target achievement in factories is monitored through the Electrolux Manufacturing System. Leaner manufacturing is an important part of the Electrolux commitment to tackling climate change.
Green Spirit focuses on environmental performance improvement and employee engagement through action plans. To help achieve energy saving targets in factories, offices and warehouses, each facility gathers energy consumption data and sends it to Sustainability Affairs on a monthly basis. Here it is collated, and best practice examples shared across the group. Green Spirit information points in facilities and offices keep employees up to date with progress against targets. Suggestions from employees for environmental improvement are encouraged and rewarded. During 2010, the focus of Green Spirit across the Group was mostly on energy, and in 2011 a broader range of action plans will be implemented, including reducing water use and cutting carbon emissions from transport.
Group Communications is responsible for engaging in the climate change agenda with stakeholders, as well as raising awareness of the role of energy and water-efficient appliances and their contribution in reducing consumers’ carbon footprint.
Board engagement
While the Board as an entity has oversight responsibility for associated risks, its role is distinguished from the operational responsibilities of the Chief Executive Officer, as is typical for public Swedish companies.
The Board monitors progress in implementing climate change strategies as part of its review of strategic orientation, business risks and its evaluation of operational management. Mechanisms to inform the Board include board oversight, through internal audits, management performance, public disclosure, emissions accounting and strategic planning. In addition, the Board is supplied with Green Range data, which tracks sales and profitability of each business sector’s product offering of energy and water-efficient products, on an annual basis.
Engagement along the value chain
Through the Workplace Standard, Electrolux requests that all suppliers measure and monitor their energy use. Electrolux is partnering six suppliers in a pilot Energy Efficiency Partnership Program to help them develop targeted approaches to reducing their energy impact. The program is due for roll-out to more suppliers in 2011.
Transportation
A Group-wide system for gathering and tracking transport data has been developed, and information collected by sectors is sent to Sustainability Affairs for monitoring. During 2011, the new transport carbon reduction target, set in 2010, will be embedded and best practices shared across the Group.
Water
Producing appliances is not water intensive relative to many other manufacturing industries. Water consumption in factories is managed under Green Spirit, using the same approach as energy saving to compile and share water data across the Group. Electrolux has defined a reductions target for water use of 20% by 2014, using 2010 as a baseline.
Through innovation, and by promoting water-efficient products, Electrolux is helping to reduce water use amongst customers.
Biodiversity
Biodiversity issues are managed locally, with group-wide guidelines as defined by the Workplace Standard as biodiversity is not deemed a material issue for the Group. Two facilities (Solaro, Italy and Revin, France) are adjacent to protected biodiversity areas. Electrolux monitors all its facilities for emissions and no significant impacts on biodiversity have been identified.
Emissions, effluents and waste
All hazardous waste (mainly oils, solvents and other chemicals) is managed in accordance to local regulations.
Products and services
Each business area within Electrolux promotes its own range of water and energy-efficient appliances and vacuum cleaners. Electrolux raises the bar for products qualifying for the range on a yearly basis. Although locally defined to meet each market need and regulatory demand, the series is based on environmental parameters defined by the Group.
The company’s designers are trained on the Electrolux System using the Product Management Flow, which includes sustainability guidelines. These guidelines are currently being reviewed and the revised version will be integrated during 2011.
Electrolux is also preparing for increased legislation world-wide on managing chemicals, energy efficiency standards and producer responsibility for recycling of Group appliances in all markets.
REACH is an EU Directive on the registration, evaluation, authorization and restriction of chemicals. Electrolux sees REACH as a tool for ensuring safe products, safe production and environmental protection. In 2007, Electrolux in Europe established a central chemical office to effectively manage the implementation of the REACH directive.
Global sales in the Green Range, consisting of the Group's most energy and water-efficient appliances, accounted for 22% of sold units during 2010, while they contributed 35% in gross profit.