Performance review: Responsible sourcing

Focus area Objectives / Challenges 2010 Performance Next step
Continue to develop the Responsible Sourcing Program in Latin America and Eastern Europe.
  • Proportion of procurement from low-cost countries increased from 30% in 2004 to approximately 56% in 2010 and will continue to rise.
  • Expanding the Responsible Sourcing teams enables the Group to cover a greater number of suppliers and continue with development projects in the areas where support is most needed.
  • The number of specialists increased with focus on expanding Mexican and Polish presence.
  • New suppliers in high-risk countries such as the Ukraine  require greater geographical coverage and new challenges for the Responsible Sourcing Program.
Integrate Responsible Sourcing in global and local purchasing procedures.
  • Define a cohesive approach to evaluating existing and potential suppliers among global and local suppliers.
  • Internal training sessions and joint audits with quality departments.
  • Code of Conduct priorities integrated into regular purchasing procedures for identifying and evaluating suppliers group-wide.
  • Ongoing.
  • Increase monitoring activities in high-risk countries.
Supplier development program (Workplace standard compliance).
  •  Encourage supplier ownership for upholding high environmental and social standards by presenting how to meet expectations and raise standards.
  • Broadened the scope of strategic suppliers.
  • Established a supplier development team in Asia/Pacific.
  • Increase the number of projects in all regions.

Raise the level of environmental criteria.

  • The Electrolux Workplace Standard requires that all suppliers measure their energy use.
  • Increase understanding among suppliers for their environmental impacts and what is required to address them.
  • In the long term, develop a system to collect carbon data from suppliers.
  • Piloted the Energy Efficiency Partnership Program (EEPP) among six selected suppliers in China.
  • Apply EEPP learnings to more suppliers.
  • Collect and analyze energy data from selected suppliers.
Conduct audits on compliance to Code of Conduct and Environmental Policy among existing and potential suppliers.
  • Increase the number of audits. 
  • Stimulate long-standing commitment to high environmental and social standards among suppliers.
  • 328 (290) audits conducted, 271 by Group sustainability auditors and 57 by third-party assurers.
  • Ongoing