Performance review: Stakeholders and society (Responsible sourcing)

Focus area Objectives / Challenges 2012 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 some 60 suppliers in Thailand.
  • Introductory workshops with main suppliers in Brazil  and China in 2013.
Integrate suppliers’ energy use into Electrolux reporting.
  • Gain better insight into the energy consumed by suppliers and how they are managing it.
  • Collected data from approximately 60% of the Group’s OEM supplier spend on their environmental performance. Supplier energy consumption is not integrated into the Group’s external reporting of energy use.
  • Incorporate environmental data from 80% of OEM / ODM supplier spend, and introduce improvement targets.
Continue to develop the Responsible Sourcing Program globally.
  • Proportion of manufacturing from low-cost countries increased from 30% in 2004 to approximately 60% in 2012 and will continue to rise.
  • Increasing numbers of local suppliers to Group factories in risk-based countries require a shift in strategy and awareness-raising.
  • 293 (360) audits were conducted with a focus on markets defined as high or medium risk. Most findings related to health and safety issues
  • Follow-up audits carried out at 53 suppliers indicate considerable improvement by most.
  • Procedures are in place to accommodate new suppliers in high-risk countries such as the Ukraine, Argentina and Egypt.
  • Ensure that the right resources are in place in high-risk countries.
  • Continue to follow up on performance and progress.
Integrate Responsible Sourcing in global and local purchasing procedures.
  • Define a cohesive approach to evaluating existing and potential suppliers among global and local suppliers.
  • Developed a common process for establishing the annual audit program across all regions.
  • Procedures for continuous sharing of supplier performance established.
  • Improve and align tools for supplier risk assessments and results reporting in 2013.
  • Implement new supplier rating principles in 2013.
  • Tighten escalation process to drive the pace of improvement of suppliers’ CoC performance in 2013.