R&D
In 2013, Electrolux will allocate SEK 3bn to R&D, approximately one third of which is sustainability-related. Focus is on energy- and water-efficiency and design-for-recycling. Reduction goals for energy, water and chemicals have been set for all major product categories. (Direct impact)
- Developing efficient products and meeting minimum efficiency standards
- Products for the growing middleclass
- Phasing out potentially hazardous substances and greenhouse gases
- Material efficiency and Design-for-recycling
Finding ways to scale up energy-efficient solutions from premium to mass and making them cost-efficient. Increasing fleet efficiency.
Staying a step ahead of consumer needs delivers customer value and increases long-term company viability.
Suppliers
The company's 3,000-plus suppliers must manage their sustainability performance in line with Group expectations. Audits target those in high- and medium-risk countries. Focus is on building supplier capacity to maintain high standards. (Indirect impact)
- Transparency, accountability and dialog
- Building strategic partnerships
- Compliance to the Electrolux Workplace Standard
- Resource efficiency
Demonstrating long-term change. Growing number of suppliers in countries with inadequate legislation and/or enforcement. Building supplier partnerships to realize sustainable innovation.
Applying universal norms supports human rights and raises environmental, labor and economic standards, esp. in low-cost countries. It builds trust and reduces business complexity and reputational risk.
Electrolux operations
The Electrolux Foundation sets out the guiding principles: respect & diversity, ethics & integrity, safety & sustainability. The Group's 58 factories, 32 warehouses, 48 offices and close to 60,000 employees must be managed accordingly. (Direct impact)
- Reducing energy, water, waste and emissions
- Aligning new operations to Group standards
- Ethical business practices – including human rights and health and safety
- Restructuring
Integrating newly acquired operations. Engaging staff in sustainability goals. Aligning sustainability and business priorities.
Communities benefit through jobs, knowledge transfer and economic opportunity. Enhanced competence development, wellbeing and talent retention through positive employee relationships. Energy reductions of SEK 300m a year in cost savings compared to 2005. Reduced costs through lower accident rates.
Transport
Electrolux is partnering with logistics suppliers to improve transport efficiency by 15% between 2010 and 2014. Logistics makes up about 1% of the product lifecycle CO2 footprint. (Indirect impact)
- Carbon footprint and improved efficiency
Transport will increase due to product volumes. Accurate data collection on CO2 emissions is still not standardized. Increasing rail, intermodal and sea transport.
As transport is a big contributor to climate change, reducing its impact benefits society. As a transport buyer, Electrolux can help drive change in the logistics industry.
Point of purchase
Retailers are the bridge to consumer engagement. Along with energy and performance labels, partnerships help consumers make the switch to sustainable products. (Indirect impact)
- Promote sales of green products
- Minimum efficiency standards and labeling
- Transparency and accountability
- Building strategic partnerships
Ensuring point-of-sales personnel have the right tools to raise awareness. Meeting varied retailer requirements on labor, human rights and environment.
Working together to increase transparency and promoting a sustainable product offering contributes to retailers' sustainability goals, strengthens brands and builds customer loyalty. The Green range represented 10% of sold products and 18% of gross profit in 2012.
Consumer use
With main impacts occurring during product use, product efficiency is the top priority. Refrigerator and freezer efficiency in Europe improved on average by 3% per year from 2008 to 2012. (Indirect impact)
- Efficient products
- Products for the growing middle class
- Product safety
- Public advocacy on the role of efficient appliances
Helping consumers understand the value of high sustainability standards. Raising awareness on the role energy use has in reducing climate impact.
Appliances deliver social benefits – especially in emerging markets – provided their CO2 footprint shrinks. Greater efficiency awareness saves energy costs.
End-of-Life
Legislation on appliance recycling is being introduced in key markets. In Europe – the region with the most comprehensive producer responsibility legislation – major appliances are designed to be 80% recyclable (70% for small appliances). (Indirect impact)
- Phasing out hazardous substances
- Producer responsibility
- Transparency and accountability
- Public advocacy on the importance of recycling
Lack of regional harmonization in recycling legislation. Partnering with retailers and NGOs to raise awareness. Greater internal focus on design-for-recycling.
Reduced landfill. Building closed-loop systems. Innovative designs that reuse materials save money and energy and increase brand trust.
