Electrolux identifies the issues most relevant to its business by assessing stakeholder priorities and gauging the importance of the issues impacting the business.
The sustainability strategy sets out clear priorities linked to important aspects of business operations and strategy. These take into account market and consumer megatrends and issues of importance to stakeholders, including those most affected by the business and most critical to its success.
Setting priorities
Electrolux uses a materiality process based on Accountability’s The Materiality Framework to identify priorities and align strategy and reporting with emerging stakeholder expectations.
The Group monitors issues across the product lifecycle, engages in external and internal dialog, conducts surveys and interviews, consults market intelligence reviews and follows a range of media to keep abreast of trends and key issues. It draws on a number of global standards, from ISO and the Global Reporting Initiative (GRI) to the UN Guiding Principles on Business and Human Rights. Each year, the process is reviewed and updated and adjustments made accordingly to the company’s sustainability priorities, risk management and dialog agenda.
A dual approach
The process is based on analyzing a universe of sustainability issues from two perspectives: the priorities of key stakeholders and the influence on business priorities.
Customers, employees, consumers and shareholders are the most important stakeholders and the success of the sustainability strategy is measured against their perception of Electrolux. Stakeholder expectations and insights and how these influence the business are outlined in An inclusive approach.
Other key stakeholders include:
- Opinion leaders/NGOs for human rights
- Opinion leaders/NGOs for environment
- UN and other global agencies
- SRIs (socially responsible investors)
- Media
- Scandinavian companies
- Industry peers
- Government contacts
- GRI, ISO standards and guidelines
These groups are weighted according to their influence on, and importance to, the business and strategy. The company then reviews internal business processes that have an influence over the sustainability strategy. These elements are also weighted.
Specialists responsible for each area of the sustainability strategy individually score and collectively review the importance of each issue for every stakeholder and for each element of the business. The Sustainability Affairs function concludes the internal mapping by challenging outcomes and sharing stakeholder insights and feedback collated throughout the year.