Influencing the value chain
Since some of the Group’s greatest sustainability impacts occur outside Group operations, sustainability efforts are increasingly about working with others to address indirect impacts.
Taking a value chain approach provides a helicopter view of where impacts occur, which partners to engage and how the greatest value can be created for Electrolux and its stakeholders. This holistic view makes it easier to identify opportunities, minimize impacts and understand boundaries.
Click on each element of the value chain below to find out more about key issues, challenges and how Group action is creating value.
Electrolux allocated SEK 2.5bn to R&D, approximately one third of which is sustainability-related. Focus is on energy- and water-efficiency as well as use of materials. Reduction goals for energy, water and chemicals are in place for all major product categories.
- Developing efficient products
- Products for the middle class in emerging markets
- Phasing out chemicals of concern
The company's more than 3,000 suppliers must manage their sustainability performance in line with Group requirements. Audits target those in high- and medium-risk countries, esp. in China, the Ukraine, Egypt, Chile and Argentina. Focus is on building supplier capacity to maintain high standards. (Indirect impact)
- Supplier Code of Conduct compliance
- Health and Safety
The Electrolux Foundation sets out the guiding principles: respect & diversity, ethics & integrity, safety & sustainability. The Group's factories, warehouses, offices and close to 61,000 employees must be managed accordingly. (Direct impact)
- Reductions in energy, water, waste and emissions
- Code of Conduct compliance - including anti-corruption, human rights
- Health and Safety
- Integrating sustainability
Electrolux is partnering with logistics suppliers to improve transport efficiency. Logistics makes up about 1% of the product lifecycle CO2 footprint. (Indirect impact)
- Carbon footprint and improved efficiency
Retailers are the bridge to consumer engagement. Along with energy and performance labeling, partnerships help consumers make the switch to sustainable products. (Indirect impact)
- Promote sales of green products
With the major impacts occurring during product use, product efficiency is the top priority. Refrigerator and freezer efficiency in Europe improved on average by 3% per year between 2008 and 2013. (Indirect impact)
- Product efficiency
- Products for the growing middle class
Legislation on appliance recycling is being introduced in key markets. In Europe - the region with the most comprehensive producer responsibility legislation - major appliances have to be recycled to 80% (70% for small appliances). (Indirect impact)
- Phasing out chemicals of concern.
- Transparency and accountability
In 2013 we continued to deliver above our growth target and delivered 4.5% in organic sales growth.
I'm convinced that raising product efficiency for the growing middle class is where long-term shareholder value creation lies.
Electrolux is the only appliance manufacturer in the industry to offer complete solutions for both consumers and professionals. The focus is on innovative and energy-efficient products in the premium segments.
Achieving the Group's vision of sustainability leadership is crucial to realizing the business strategy. The objective is to develop smarter, more accessible, resource-efficient solutions that meet people's needs and improve their lives. Read the comprehensive sustainability performance review.
Awards & recognition
Net sales for the Electrolux Group in 2013 amounted to SEK 109,151m, as against SEK 109,994m in the previous year. The organic sales growth was 4.5%, while currencies had an impact of -5.3%.