An inclusive approach

Consumer perception

Consumer insight helps shape the business strategy and product development. Brand scorecards, trend reports, independent analysis as well as interviews and visits to households around the world enable the Group to keep up to date with consumer behavior.

The Group aims to be a sustainability leader and among the ways to measure this is consumer perception. As of 2012, a brand scorecard module on sustainability asks consumers in Brazil, China, USA, Germany, France and Australia how they perceive the importance of efficient appliances, along with the issues that most engage them.

The value chain approach

Electrolux is committed to working in partnership along the value chain to develop sustainable solutions. See more at Influencing the value chain.

The company hosted a workshop in Thailand with around 60 major suppliers to introduce them to the strategy and underline the value of energy efficiency and high labor standards. Read more at Sharing the wisdom.

Electrolux has long track record of informal cooperation with retailers and customers to promote environmentally sound appliances, enhance consumer awareness and achieve common sustainability objectives.

Cutting carbon is a shared priority for Electrolux and its customers. In 2012, in cooperation with Carlsberg, Electrolux developed a solution to dramatically cut the carbon footprint of dispensing beer in aluminum kegs. For more information, see Snapshot: Reinventing the beer keg.

Retailers increasingly stipulate formal commitments to social and environmental performance standards in their contracts. They also periodically request Code of Conduct audits of Electrolux facilities. In 2012, four major retailers requested Code of Conduct audits of Electrolux facilities and contracted manufacturers (OEM) suppliers.

To help optimize residential use of energy in households, Electrolux participates in the development of smart-grid technologies in appliances and in public policy debate. The Group has partnerships in Europe, Australia and the US with energy providers, ICT companies and local governments.

Employee input

Employee contributions are highly valued. The Group's Board of Directors comprises non-executive members, the CEO and, in accordance with Swedish law, three employee representatives and three deputies who provide employee input into company decision-making.

In 2012, 85% of the Group’s white-collar workers took part in the Employee Engagement Survey. Approximately 80% stated that company actions reflected its Foundation values. Fair and equal treatment was an area identified by employees as needing improvement. The Group aims to extend the survey to factory workers. Read more at Snapshot: Feedback foremost.

This year, Electrolux also introduced a Purpose program to engage employees in sustainability objectives. The program aims to build an understanding of the value Electrolux creates beyond financial and market objectives. Workshops are scheduled across the company in 2013. Read more at Snapshot: On Purpose.

In 2012, comments were sought from top managers across the company on the Group’s sustainability strategy and priorities. Responses emphasized that sustainability was among the Group’s top five priorities, with energy constraints and water scarcity as the global issues most relevant to the business. Integration and alignment with business strategies were identified as key challenges.

Building relationships with unions

Since signing the International Framework Agreement (IFA) with unions in 2010, meetings have been arranged on an annual and as needs basis with employee representatives to review the Group’s Workplace Code of Conduct compliance and fulfillment of the IFA. Additionally, meetings take place with the head of Industrial Relations and union representatives before each Board of Directors meeting.

Shareholder priorities and rating agencies

Electrolux maintains ongoing dialog with investors and owners, many of whom are pension funds with long-term commitments to Electrolux. Their primary concern is transparency over long- and short-term risks and opportunities affecting the business.

The Group strives to meet the information needs of socially responsible investors (SRI) through its reporting activities. Electrolux also submits tailored information to select rating agencies. This includes RobecoSAM, managers of the prestigious Dow Jones Sustainability Index.

Electrolux also reports to the Carbon Disclosure Project. In 2012, it achieved a score of 86 points, placing it among the top CDP Nordic reporters.

In 2012 Electrolux operations in Juarez, Mexico hosted a visit of SRI specialists representing a Swedish bank. They were particularly interested in evaluating the Group’s practices with regard to freedom of association in sensitive markets.

Shared agenda

Sustainability Affairs is responsible for Group dialog with internal and external stakeholders on sustainability-related issues, as well as choice of suitable partners for collaboration on issues relevant to the Group.

Electrolux is currently in dialog with human rights and environmental organizations. The Group also works with other companies to address areas of common concern through the think-tank organization Business for Social Responsibility (BSR), and the International Council of Swedish Industry. The frequency of engagement is issue- and agenda-driven. The Group took an active part in 2012 in BSR working groups such as Clean Cargo (CCWG) to influence the development of carbon emissions calculation standards for transportation.

Electrolux hosted a Human Rights seminar in May with experts from Middlesex University (UK), the Swedish Foreign Ministry and other companies, on how to implement the UN Guiding Principles on Human Rights (UNGP). Dialog will continue through involvement with UNICEF’s network on Children’s Rights and Business Principles, and the Swedish Network for Business and Human Rights.

Electrolux also sponsored the Sears 2012 Sustainability Conference held in the US. Conference attendees included large utility companies, manufacturers, third party support companies, and representatives from the Environmental Protection Agency.

Electrolux has been a signatory of the European Appliance Industry Code of Conduct (CECED) since its inception. Harmonization of product performance standards is a key topic among national and international bodies such as the International Electrotechnical Commission and the industry association CECED.

Under the banner of Green Spirit, Electrolux in Italy held the third edition of Seeds of Sustainability, an event organized with WWF, targeting a wide range of stakeholder groups – from government, institutions and media to customers and students.

Additionally, Electrolux representatives spoke at engagements such as a Supply Chain seminar (Stockholm), and the Economist’s World Oceans Summit, (Singapore).

Endorsing initiatives

The Group cooperates with other corporations sharing similar goals through, e.g., the UN Global Compact (UNGC) and its Nordic network, as well as the national industry organization Confederation of Swedish Enterprise.

Over and above its support of the UNGC's ten principles, Electrolux endorses initiatives such as Caring for Climate, aimed at advancing practical solutions and shaping public policy and public attitudes on climate change. In 2010, Electrolux signed the UNGC CEO Water Mandate, a public-private initiative to assist companies in the development, implementation and disclosure of water policies and practices.

Together with Friends of the Earth Europe, the European Environmental Bureau, ECOS, and other appliance manufacturers, Electrolux has signed a statement highlighting the benefits of European product policy under Ecodesign legislation. The joint NGO-industry statement was launched during the 2012 EU Sustainable Energy Week in Brussels, to help drive adoption of minimum energy-efficiency limits for a wide range of products.

Dialog with governments

Electrolux maintains dialog with opinion-formers and policymakers from governments and intergovernmental organizations. This is conducted directly, and through membership in appliance industry associations such as the European association CECED and the American Home Appliance Manufacturers Association (AHAM).

Public policy discussions with government authorities cover issues such as climate change, energy efficiency, resource efficiency, phasing out of hazardous substances, producer responsibility for recycling and collection of waste, smart appliances, product responsibility and the introduction of government incentives for consumer purchases of energy-efficient appliances.

In the "Super-Efficient Appliances" roundtable discussion at the Clean Energy Ministerial in London, the Electrolux Chief Technology Officer (CTO) exchanged ideas with energy ministers from 20 participating countries. Topics included ways to drive public-private engagement in support of clean-energy deployment. The CTO is part of a consulting group to develop new theme clusters for a seven-year EU innovation program focused on energy-efficiency subsidies.

In Australia, Electrolux is working with government on the new Minimum Efficiency Performance Standards for 2015, and collaborating with government technical consultants to ensure that resulting levels are consistent with best industry practice.

Locally-driven engagement 

Each market and business area is responsible for maintaining dialog with representatives from relevant interest groups. Local operations cooperate and engage with non-governmental organizations such as WWF in Italy, the Ovarian Cancer Research Fund, Save the Children and the United Way in the United States and Joy for Life (Livslust) in Sweden.

Locally-driven engagement around Vac from the Sea continued in 2012 in Mongolia, New Zealand, South Africa, Poland, Finland and Brazil. Vac from the Sea is an umbrella campaign designed to raise awareness among consumers on plastic pollution in the world’s oceans and seas and the importance of using recycled plastics. Read more at Community

Stakeholder-engagement platform

Year on year, Electrolux seeks to improve its stakeholder engagement. In 2013, priority focus areas will be reducing its climate footprint along the value chain and human rights, particularly issues relating to freedom of association.