Electrolux in Italy hosted its 2010 green event at the Solaro Factory. The annual event brings together business leaders, policymakers and sustainability thought-leaders.
Accountability to consumers, customers, employees, shareholders and others affected by the Group's operations involves sharing experience and addressing concerns. Stakeholder insight also enables Electrolux to better understand its markets and societal trends.
Sharp focus on consumer needs
Consumer insight is decisive for both the business strategy and product development. Trend reports, independent analysis as well as interviews and visits to households throughout the world enable the Group to identify consumer behaviour as well as how people are affected by societal mega-trends. Electrolux is thereby better able to respond to them in the product offering.
In 2010, Electrolux compiled its own micro-trend report to review the sustainability-related drivers and trends most relevant to Electrolux. This analysis is intended to further integrate sustainability thinking into the brand, product development and business strategy.
Long-term relationships with customers
Strong relationships with retailers are central to the business model. Electrolux has long-cooperated informally with retailers to promote environmentally-sound appliances and enhance consumer awareness. As an example, Electrolux Major Appliances in North America conducted training with representatives of some of its largest outlets such as Best Buy, Lowe’s and Sears in order to bring the message of energy efficiency directly to the sales floor. This was particularly relevant during Q2 at the launch of the USD 300m (SEK 2,290m) American Recovery and Reinvestment Act which generated rebates for the purchase of a dishwasher, washing machine or refrigerator carrying an Energy Star efficiency rating.
Growing numbers of retailers are stipulating formal commitments to social and environmental performance standards in their contracts.
Employee input
Employee contributions are highly valued. The Group's Board of Directors comprises non-executive members, the President and, in accordance with Swedish law, three employee representatives and three deputies. They thereby provide employee input into company decision-making.
The Employee Engagement Survey seeks feedback from personnel on the corporate culture and how it meets up to the Electrolux values, team efficiency, and leadership. This is a new generation engagement survey for Electrolux, more closely aligned with the Group's Our Electrolux vision and values program (see case study).
Building relationships with unions
In 2010, Electrolux and IF Metall signed an international framework agreement about workplace conditions at Electrolux (see case study).
Shareholder priorities
Dialog with investors and owners, many of which are pension funds with long-term commitments to Electrolux, is also ongoing. Their primary concerns are that Electrolux understands and acts on emerging issues and that the Group is transparent with regard to long- and short-term risks and opportunities.
Socially responsible investors
Much of the information needs of socially responsible investors (SRI) are reflected in the Group's reporting practices This includes Sustainable Asset Managers (SAM), managers of the prestigious Dow Jones Sustainability Index. Electrolux has been a member of the DJSI investment community since 1998. Electrolux has also reported to the Carbon Disclosure Project since its inception. A synopsis of the Group's answers to the CDP questionnaire are published at Electrolux.com and is titled Climate Q&A.
Shared agenda
The Electrolux staff for sustainability affairs is responsible for Group dialog with internal and external stakeholders on sustainability-related issues, such as climate change, producer responsibility for recycling and responsible sourcing. Identification and choice of partners are primarily based on the weight the organizations carry for issues relevant to the Group.
Stakeholders include organizations such as the Worldwide Fund for Nature (WWF) and Business for Social Responsibility (BSR). Frequency of engagement is issue- and agenda-driven. Since 2004, Electrolux has taken part in the development of ISO 26000 social responsibility guidelines launched in 2010, and in the harmonization of product performance standards through the International Electrotechnical Commission.
At the launch of Vac from the Sea, an awareness-raising campaign to highlight the problem of plastic waste in the oceans, Electrolux partnered with organizations such as the US-based Algalita and 5Gyres (see case study).
Electrolux in Italy hosted its 2010 green event at the Solaro Factory. The annual event brings together business leaders, policymakers and sustainability thought-leaders.
Another focus area for the partnership approach during 2010 was in the area of smart grids. Electrolux entered into public-private partnerships in Italy, Sweden, Denmark and the Netherlands in order to spearhead applications of the technology to reduce residential use of energy and better enable the use of renewable energy in households (see case study).
Additionally, Electrolux representatives have spoken in engagements at COP16 in Mexico, the Business for Social Responsibility conference held in New York, and at various universities.
Endorsing initiatives
Over and above its support of the UN Global Compact (UNGC) and its ten principles Electrolux endorses initiatives such as Caring for Climate, aimed at advancing practical solutions and shaping both public policy and attitudes on climate change. In 2010, Electrolux signed the UNGC CEO Water Mandate, a public-private initiative designed to assist companies in the development, implementation and disclosure of water policies and practices.
Electrolux is also a signatory of the European Appliance Industry Code of Conduct (CECED).
Dialog with governments
Electrolux also maintains continuous dialog with representatives from governments and intergovernmental organizations. This is conducted both directly and through membership in appliance industry associations such as CECED and the American Home Appliance Manufacturers Association (AHAM). Public policy discussions with governmental authorities cover issues such as climate change, energy efficiency, producer responsibility for recycling, product responsibility as well as the introduction of government incentives for consumer purchases of energy-efficient appliances. A milestone announcement was that the US EPA recognizes Electrolux as the EPA/ENERGY STAR Appliance Partner of the Year for 2011.
Integrating insights into business decisions
Feedback from stakeholders are compiled and reported to Group Management, and reflected in their decision-making. Sustainability Affairs also conducts dialog with target audiences on the reporting process.
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 and the United Way in the United States and the Ethos Institute for Companies and Social Responsibility in Brazil. Electrolux also cooperates with other corporations that have similar goals through, e.g., the UN Global Compact and its Nordic network, as well as the Confederation of Swedish Enterprise.
In 2011, Electrolux intends to further intensify its work with stakeholder engagement by building a process that is better integrated into business strategies.