Home
Menu Download Search
Annual Report 2016 Executive statements Key priorities Progress 2016 Key processes Case studies Reporting framework

Impacts along the value chain

Taking a value chain approach provides us with a big picture view of how we can most effectively tackle our impacts.

Analyzing our sustainability approach through the lens of our value chain helps to identify how we can best leverage our influence and create the greatest value. This makes it easier to identify opportunities, minimize or enhance impacts and understand boundaries. The value chain perspective also helps us recognize how actions and impacts are interconnected.

The diagram below illustrates our degree of influence along major stages of our value chain and provides examples of the value we create. The links under each phase provide context on key impacts and how we tackle them.

R&D

​​ High ability to influence  

Electrolux allocated SEK 3,148m (3,210 m) to R&D, approximately one third of which is sustainability-related. Focus is on energy- and water-efficiency as well as the use of materials.

How we tackle our impacts

  • Improve product performance & efficiency
  • Make better use of resources
  • Eliminate harmful materials
  • Provide sustainable solutions for everyone
  • Work towards our climate target

Generating value

Staying one step ahead of consumer needs on efficiency delivers customer value and aligns with our business strategy, while reducing negative impact on the environment.

Suppliers

Medium ability to influence  

Electrolux has over 3,000 direct suppliers that must manage their performance in accordance with our Group sustainability requirements. The focus is on finding and developing supplier capacity to maintain our high standards in high-risk countries, both in terms of better use of resources and other sustainability aspects. This requires careful assessment and a qualified selection of suppliers.

How we tackle our impacts

  • Improve sustainability in the supply chain
  • Work towards our climate targets

Generating value

Rewarding suppliers that can comply with Electrolux standards stimulates technical progress and local innovation. Promoting universal norms supports human rights and raises environmental, labor and economic standards - especially in low-cost countries. This also builds trust and reduces business and reputational risk.

Transport

Medium ability to influence  

Electrolux emits more CO2 transporting its goods than it emits through the combined energy used in Group operations. About 300,000 tonnes are emitted through the distribution of our goods via sea, land and air in Europe, North America and Brazil.

How we tackle our impacts

  • Improve sustainability in the supply chain
  • Work towards our climate targets

Generating value

As transportation is a major contributor to climate change, reducing our impact benefits society. We can use our purchasing power to support the trend toward more sustainable transport and encourage our logistics suppliers to engage in dialogue with others on how to further reduce their impacts.

Sales

Low ability to influence  

Electrolux sells more than 60 million products in over 150 countries every year. Sales are primarily made through retailers. Together with energy and performance labeling, communications at the point of purchase is our main opportunity to raise consumer awareness on efficiency. We continue to drive the market for efficient products through campaigns that highlight sustainability.

How we tackle our impacts

  • Improve product performance & efficiency
  • Provide sustainable solutions for everyone
  • Work towards our climate targets

Generating value

Working together to increase transparency and promote a sustainable product offering contributes to retailers' sustainability goals, strengthens brands and builds customer loyalty. As seen by our Green range share of sales, an efficient product offering is a profitable strategy for Electrolux.

End-of-life

Low ability to influence  

Legislation on appliance recycling is being introduced in key markets. In Europe, the region with the most comprehensive producer responsibility legislation, 80% of the materials (by total volume) from collected large appliances must be recovered (70% for small appliances).

How we tackle our impacts

  • Make better use of resources
  • Eliminate harmful materials 

Generating value

Reduced impact on the environment through helping to reduce landfill and building closed-loop systems. Saving money and energy and increasing brand trust through innovative designs that reuse materials.