Annual Report 2013

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Influencing the value chain

Since some of the Group’s greatest sustainability impacts occur outside Group operations, sustainability efforts are increasingly about working with others to address indirect impacts.

Taking a value chain approach provides a helicopter view of where impacts occur, which partners to engage and how the greatest value can be created for Electrolux and its stakeholders. This holistic view makes it easier to identify opportunities, minimize impacts and understand boundaries.

Click on each element of the value chain below to find out more about key issues, challenges and how Group action is creating value.


R&D

Suppliers

Electrolux
operations

Transport

Point of
purchase

Consumer use

End-of-Life

R&D

Electrolux allocated SEK 2.5bn to R&D, approximately one third of which is sustainability-related. Focus is on energy- and water-efficiency as well as use of materials. Reduction goals for energy, water and chemicals are in place for all major product categories.

  • Developing efficient products
  • Products for the middle class in emerging markets
  • Phasing out chemicals of concern
Finding ways to scale energy-efficient solutions from premium to mass and making them cost-efficient. Increasing fleet efficiency.

Suppliers

The company's more than 3,000 suppliers must manage their sustainability performance in line with Group requirements. Audits target those in high- and medium-risk countries, esp. in China, the Ukraine, Egypt, Chile and Argentina. Focus is on building supplier capacity to maintain high standards. (Indirect impact)

  • Transparency
  • Supplier Code of Conduct compliance
  • Health and Safety
Growing numbers of suppliers are in countries with inadequate legislation and/or enforcement. Achieving long-term change among suppliers and building partnerships to realize sustainable innovation.

Electrolux
operations

The Electrolux Foundation sets out the guiding principles: respect & diversity, ethics & integrity, safety & sustainability. The Group's factories, warehouses, offices and close to 61,000 employees must be managed accordingly. (Direct impact)

  • Reductions in energy, water, waste and emissions
  • Code of Conduct compliance - including anti-corruption, human rights
  • Health and Safety
  • Restructuring
  • Integrating sustainability
Integrating acquired operations. Engaging staff in sustainability goals, embedding sustainability fully in all sectors and achieving consistency across the organization.

Transport

Electrolux is partnering with logistics suppliers to improve transport efficiency. 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.

Point of
purchase

Retailers are the bridge to consumer engagement. Along with energy and performance labeling, partnerships help consumers make the switch to sustainable products. (Indirect impact)

  • Promote sales of green products
  • Transparency
Ensuring point-of-sales personnel have the right tools to raise awareness. Meeting varied retailer requirements on labor, human rights and environment.

Consumer use

With the major impacts occurring during product use, product efficiency is the top priority. Refrigerator and freezer efficiency in Europe improved on average by 3% per year between 2008 and 2013. (Indirect impact)

  • Product efficiency
  • Products for the growing middle class
Helping consumers understand the value of high sustainability standards. Raising awareness on the role energy use in households has in reducing climate impact.

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 have to be recycled to 80% (70% for small appliances). (Indirect impact)

  • Phasing out chemicals of concern.
  • Transparency and accountability
Promote the introduction of market incentives for Design for Environment. Partnering with retailers and NGOs to raise awareness. Making better use of modularization.

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