Performance review: Climate challenge

Focus area Objective / challenge 2010 performance Next step
Innovating and promoting efficient products: Promote a green range of products in each business area. Green Range incorporates state-of the- art energy and water-efficient appliances.
  • Raise the bar on Green Range criteria in ways that are relevant for the Group’s major markets.
  • Realize the potential of a Green Range offering through marketing and communica-tions.
  • Global Green Range accounted for 22% of total sold units and 35% of gross profit for consumer products.
  • Sales of products within the Floor Care Green Range doubled.
  • Continue to build on the ranges of top environmental performing products.
  • Floor Care to complete roll out a new series of 5 Green Range products in 2011.
  • Strengthen marketing and communications of Green Range products.
Define efficiency targets across product fleet in main markets.
  • Set ambitious long and short-term targets for energy and water efficiency and chemical use in products.
  • Established a methodology for setting and verifying targets.
  • Set product efficiency targets 2011
Reducing energy use in operations An absolute reduction target for energy consumption in operations by 28% between 2005 and 2012. This both reduces carbon emissions and improves operating margins.
  • Reduce the Group’s environmental footprint (particularly by reducing energy and carbon dioxide) in the short and long term.
  • An accumulated absolute energy reduction of 25% (24) since 2005, in line with the 2012 target.
  • 173,000 fewer tons of carbon were emitted since 2005.
  • Integrated energy use into Electrolux Manufacturing System’s performance assessment and site certification.
  •  Transportation: Mapped carbon emissions impact and mode of transport group-wide.
  • Set a 15% carbon reduction target by 2014 for transport emissions, using 2010 as the baseline.
  • Further reduced the Group’s environmental footprint by setting reduction targets for water.
  • Continue toward the 2012 target and evaluate the program.
  • Increase efforts to reduce water from operations by sharing experience and best practice
  • Continue work to reduce emissions from transport by sharing experience and best practice
  • Define targets for waste and emissions reductions in factories.
  
Raise awareness along the value chain on the climate strategy. This includes communicating with consumers, partnering with business partners and dialog with policymakers on how efficient appliances can reduce total carbon emissions.
  • One in three appliances in operation is over 10 years old. In Europe, 188 million of the 630 million appliances are inefficient by today’s standards. The challenge is to convince consumers to exchange these appliances with energy-lean ones, which would result in an annual reduction of 22 Mton C02.
  • Performance standards and legislation vary between countries. Electrolux strives to support their global harmonization.
  • Build strategic partnerships with suppliers, customers, business partners and NGOs to reduce carbon along the value chain, from suppliers to end-users.
  • Dialog with representatives of governments, policy-makers and intergovernmental organizations on the importance of providing financial incentives for consumers to purchase energy-efficient appliances.
  • Cooperated in the US with retailers such as Best Buy, Lowes and Sears in the Electrolux 'Swap and Save' Program to motivate consumers to get energy-thirsty appliances off the electricity grid.
  • Participated in the development of smart-grid projects in Italy, Denmark and Sweden, together with EU, municipal authorities and business partners. Electrolux is contributing with a cutting edge application of smart-grid technology in household appliances.
  • Hosted International Energy Agency (IEA) workshop "The Smartness of Smart Grids." A forum for IEA and the business community to examine the way forward in developing sustainable grid energy.
  • Engaged suppliers in the Group’s energy-efficiency objectives with a pilot project of 6 suppliers in China, to further reduce upstream energy use.  
  • Ongoing stakeholder dialog.
  • Continued work with smart grids, particularly at the Royal Seaport urban development project in Stockholm, Sweden. The smart grid solution will be tested in 2012.
  • Roll-out learnings from the Energy Efficiency Partnership Program to other suppliers.
  • Electrolux Appliances in North America was named the sole ENERGY STAR 2011 Partner of the Year for Appliances by the U.S. Department of Energy and the U.S. Environmental Protection Agency.