Compliance
The number of incidents and non-compliances has been investigated. No significant fines and non-monetary sanctions have been identified, as stated in the Board of Directors report.
Transport
Electrolux emits at least as much carbon dioxide through transportation of its goods as is emitted through energy use from Group-combined operations (including plants, warehouses and offices). About 400,000 tons of carbon dioxide are emitted through the distribution of goods in the Group’s main markets. This comes from logistical activities, including transportation via ocean, land and air as well as business travel.
In 2010, Electrolux set a target to reduce carbon dioxide emissions from transportation by 15% by 2014, with 2010 as a baseline. A successful logistics pilot study was undertaken in Italy in 2010 to develop the methodology for calculating emissions for road transport, using external expertise, yet tailored to Electrolux operations. This was adopted widely within the Group during 2011. An objective for 2012 is to include low carbon procurement stipulations for logistics suppliers.
A key challenge in defining the target was to find a way to calculate carbon dioxide that is reliable, relevant to Group operations and easily comparable between industry, transport mode and supplier. The company continues dialog with road transport suppliers to gain better insight into fuel consumption. As a partner of BSR’s Clean Cargo Working Group, Electrolux is also involved in developing a common standard to calculate carbon emissions data for sea-faring cargo (see case study).
On the road
Electrolux joined the US Environmental Protection Agency-led program SmartWay to aid in defining baseline performance for road transport. SmartWay is slated for rollout in other regions, including Europe. The Group is also stepping up internal activities and surveying carriers to evaluate their environmental performance. The result will be included in the supplier-evaluation process in 2012.