A top commitment

2011 will mark a shift in tempo for Electrolux. As CEO, I intend to drive implementation of our sustainability strategy.

A strong commitment to sustainability is a precondition for excelling in our business.

In my previous position as Head of Global Operations, I was a member of the Electrolux Sustainability Task Force, representing both Group purchasing and manufacturing. In 2010, we began the process of developing a blueprint for action to strengthen our sustainability commitment. We improved our grasp on emerging global challenges. We sharpened our insight into how these will affect evolving consumer needs and business conditions. We know that to lead in tomorrow’s markets we have to do more with less, and—through our products—empower consumers to use less resources, too.

Foot to the floor

2011 will mark a shift in tempo for our work with sustainability. As CEO, I intend to drive implementation of our strategy. I want to be clear about what leading in sustainability means. I want put a stake in the ground—and make it visible across our organization. From our brand values and communications, to product design, from our supply chain to the partners we choose and the issues we support—all should align with our commitment.

Green product range potential takes off

Sustainability leadership feeds through our product offerings in three ways: showcasing innovation through our green flagship range; promoting water and energy efficiency across all our offerings; and by growing the market for sustainable products.

We’re seeing results. Each of our business sectors is launching and marketing a green range of its most environmentally-savvy products, for example in the areas of energy and water consumption. Every year, the bar for entry to these ranges is raised. Global sales of these ranges have progressed steadily since rolling them out in 2008. In 2010, our most water and energy-efficient appliances captured 22% of net sales, and contributed 35% of the Group’s gross profits.

We know we can do much more to ensure our entire product offering shares this same ambition for resource efficiency. We are developing a methodology for defining efficiency targets and our renewed focus on brand and product values will ensure sustainability is front of mind in future product lines.

Growing the market for green

We see the need for smart, green, connected appliances. I’m very excited about the value innovation for sustainability can bring to consumers’ lives.

To accelerate uptake of energy- and water-efficient appliances, we need to drive home the importance of smart-consumer choices through marketing. Strong sustainability messaging generates results. Our Vac from the Sea campaign, highlighting the paradox of excessive plastic waste in the oceans and shortage of recycled plastic on land, helped deliver a doubling of sales of vacuum cleaners containing recycled plastics. Importantly, it also got suppliers talking about increasing supply.

With the right market framework, we can do much more. In the US, Electrolux partnered with retailers during last year’s ‘Cash for Appliances’ incentive program in the US. The result: end of year sales increased 20%. In the first quarter of 2011, our delivery of green range appliances and efforts to educate consumers saw Electrolux Appliances named Energy Star Partner of the Year by the US Department of Energy (DOE) and the US Environmental Protection Agency (EPA).

2011 will see increased visibility and more powerful market engagement in this area.

Streamlining operations

Electrolux is here for the long term. We know natural resources can’t be consumed faster than they can be renewed. It’s time to step up to the plate.

This calls for a holistic approach right across Electrolux. One that builds on our heritage of care for the environment to find solutions to 21st century challenges.

Our actions on climate change are one example. I’m proud of how close we’ve come to reaching our 2012 energy-reduction goal—already we’ve cut energy 25% and are three percent shy of reducing it by 28% compared to our 2005 baseline. We’re not only cutting carbon, we’ll be saving 200 mSEK a year in energy costs. With volatile energy prices, this is a good outcome for shareholder and society alike.

Doing ethical business and creating safe workplaces

I’m pleased to say we’ve made great progress on health and safety, too. Today, we have in place a global organization tasked with shaping a strong safety culture, with targets to cut the number of accidents in our facilities. We’re aiming high—a quarter of all facilities will operate at best global manufacturing practice levels by 2016.

Electrolux has a Code of Ethics. But codes, policies and governance systems alone are not enough. We have to live our values. Developed in 2010, our ‘Ethics at Electrolux’ program is designed to engage employees around the company’s expectations for ethical conduct and personal and corporate accountability. The program will be rolled out throughout the Group during 2011. Our Ethics Helpline will also be in place, allowing employees and business partners to report areas of concern both confidentially and anonymously.

Good business sense

I’m engaged in sustainability because it makes integral business sense. Sustainability is about synergies: efficiency works for society and for the bottom line. It’s part of delivering long-term shareholder and stakeholder value.

We don’t have all the answers, but my role is to drive the thinking forward, set the direction and leverage the networks and partnerships that will help us deliver solutions to the marketplace. That’s why I’m committed to keeping sustainability among my top priorities.

Related information in this report

Sustainable strategy

CEO statement AR

Electrolux supports the UN Global Compact principles on human rights, labor, enviroment and anti-corruption. The Electrolux code of Ethics, Workplace, Code of Conduct, Policy on Bribery and corruption and Enviromental Policy align with these principles.