Improve sustainability in the supply chain

Improve sustainability in the supply chain

Our products are to be made in the same way throughout our global supply chain – with respect for the people who made them and care for the environment.

Our promise

Electrolux will ensure that all suppliers live up to our high expectations, no matter where they are located and we will support the transition to more sustainable practices.

The roadmap to 2020

  • Monitor and secure minimum performance at our direct suppliers of components, finished goods, licensed products and services. Engage selectively further up the supply chain and promote responsibility among all suppliers toward their own supply chain.
  • Screen prospective suppliers to ensure they can live up to the Groups’s expectations.
  • Increase awareness and capabilities among our prospective and existing suppliers through training and dialogue.
  • Drive the improvement of supplier ecological footprints.
  • Leverage our influence over logistics companies to improve the CO2 efficiency of our transportation by 15% by 2020.

The case for action

We have a duty to drive improvements in our supply chain, particularly as more of our business is conducted in emerging markets. Our experience shows that enhanced sustainability performance, particularly in health and safety and energy use, improves the bottom line. We pass on this knowledge by working together with our suppliers to strengthen relationships, and ultimately create mutual benefit.

Logistics is also a key area in our supply chain as Electrolux emits more CO2 in distributing its goods than is emitted through the energy consumed in Group operations. Around 315,000 tonnes are emitted through the global transportation of goods via sea, air and land.

Our approach

Sourcing

Our over 3,000 direct suppliers are required to live up to our Code of Conduct and Workplace Standard. Our Responsible Sourcing Program provides both online and face-to-face training for suppliers in every region to support suppliers’ own development, and supplement supply chain auditing and performance monitoring. Our direct suppliers are responsible for communicating The Group’s standards to Tier 2 suppliers and beyond, where we have limited influence.

Non-compliances are addressed through mandatory corrective actions, as well as beyond compliance support activities such as training and capacity building. Serious non-compliances are reported to the top management in each region.

We also work to reduce carbon emissions throughout our value chain, by promoting our internal approach to monitoring and reducing energy consumption among key suppliers.

We engage with suppliers that source from countries affected by conflict. Our approach is based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, and is embedded in our policies and activities.

Logistics

We use our purchasing power to influence the logistics industry by developing more sustainable transport solutions together with our logistics partners. We also set environmental requirements in the tender process, and all shipping companies must be members of the BSR Clean Cargo initiative.

Challenges

  • Ensuring high sustainability performance throughout our value chain beyond direct suppliers remains a challenge
  • Adopting a collaborative approach with industry peers to bring about greater positive change among our shared suppliers
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