Annual Report 2013


Performance review: Stakeholders and society (Responsible sourcing)

As part of its sustainability approach, Electrolux communicates objectives, progress on priorities of each stated aspect of its strategic pillars, along with the next step for 2014 and onwards.

Focus area Objectives / Challenges 2013 Performance Next step
Engage suppliers in the Group’s sustainability strategy
  • Gain suppliers’ commitment and support to Electrolux sustainability priorities.

  • Identify and assess impacts along suppliers beyond direct material suppliers.
  • Trained a total of 127 suppliers, representing 13% of high-risk suppliers.

  • Electrolux employees in key positions in procurement have received between two and eight hours of dedicated training.
  • Provide introductory training for main suppliers in new geographies: Chile, Argentina and Egypt.

  • Provide training in China with focus on transparency and compliance.

  • Hold a 2014 workshop for all major Brazilian suppliers.

  • Evaluate tools for on-line training for suppliers to increase reach.
Integrate suppliers’ energy use into Electrolux reporting.
  • Gain better insight into the energy consumed by suppliers and how they are managing it.
  • Kicked off regular reporting from more than 60% of the Group’s OEM supplier spend on energy consumption and requiring minimum improvement targets.

  • At present, supplier energy consumption is not integrated into the Group’s external reporting of energy use.
  • Increase share of OEM supplier spend participating in energy reporting and saving initiative to 70% in 2014.
Continue to develop the Responsible Sourcing Program globally.
  • Proportion of procurement from low-cost countries increased from 30% in 2004 to approximately 65% in 2013 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.
  • Conducted 376 (293) audits with a focus on markets defined as high or medium risk. Most findings related to health and safety and environmental issues.

  • Carried out follow-up audits at 87 suppliers, indicating considerable improvement by most.

  • Defined KPIs to measure the reach of supplier training.
  • Develop audit tools to match content and requirements of new CoC and Workplace Standard.

  • Expand audit scope to include suppliers of indirect materials.

  • Pilot audit activities beyond direct material suppliers.

  • Continue to follow up on performance and progress.
Integrate Responsible Sourcing in global and local purchasing procedures.
  • Define a comprehensive approach to evaluate existing and potential suppliers among global and local suppliers.
  • Improved and aligned tools for assessing supplier risk and reporting results across all regions.

  • Reviewed and tightened non compliance grading.

  • Implemented new supplier rating principles.

  • Defined KPIs to drive improvement speed and follow-up of zero-tolerance findings.
  • Assess existing supplier candidate evaluation processes and align and implement a common process.

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