Performance review: Stakeholders and society (Responsible sourcing)

Focus area Objectives / Challenges 2011 Performance Next step
Engage suppliers in the Group’s sustainability strategy
  • Gain suppliers’ commitment and support to the Electrolux sustainability strategy.
  • Hosted a workshop with 40 major Chinese suppliers to introduce them to the strategy.
  • Continue with similar activities in other regions.
Integrate suppliers’ energy use into Electrolux reporting.
  • Gain better insight into the energy consumed by suppliers and how they are managing it.
  • Introduced energy reporting among major suppliers.
  • Electrolux will report energy use of OEM and ODM suppliers as of 2012.
Continue to develop the Responsible Sourcing Program globally.
  • Proportion of procurement from low-cost countries increased from 30% in 2004 to approximately 60% in 2011 and will continue to rise.
  • New suppliers in high-risk countries require greater geographical coverage and new challenges for Responsible Sourcing.
  • Set up procedures to accommodate new suppliers in high-risk countries such as the Ukraine, Argentina and Egypt.
  • Evaluate the need for additional resources in high-risk countries.

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.
  • 5 (9) training sessions on the Workplace Standard held in Brazil (1), Mexico (1) and China (3).
  • Increase the number of projects in all regions.

Raise the level of environmental criteria. The 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.
  • Develop a system to collect carbon data from suppliers.
  • Piloted the Energy Efficiency Partnership Program (EEPP) among six selected suppliers in China.
  • Hosted 40 suppliers at the Responsible Sourcing Summit in China.
  • Apply EEPP learnings to more suppliers.
  • Collect and analyze energy data from selected suppliers.

Conduct audits on compliance to Workplace 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.
  • 360 (328) supplier audits were performed this year, 327 (271) by Group auditors and 33 (57) by third-party assurers.
  • Ongoing.