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Annual Report 2015 CEO statement Strategic priorities Performance Snapshots Our approach GRI & UNGC

Managing sustainability risks

A 360o analysis of risk requires insights from Group Management, the function level and local facilities. That’s why identifying and addressing non-financial risks is a cross-functional responsibility. 

At Electrolux, a future focus enables us to pinpoint and prepare for a changing business landscape. The emergence of a global middle class, the growth of megacities, the urgency of climate change, chemical pollutants, access to water, energy and raw materials and breakthrough technologies will all impact the way we do business, and how we are perceived as a company. Understanding and managing the non-financial risks and opportunities associated with these macro drivers is an integrated part of managing our business. 

Management Assurance and Special Assignments

  • Evaluates and improves governance, internal control and risk management processes

Group Risk Management

  • Benchmarks and monitors key risks in operations and key suppliers

Other Group Staffs & Functions

  • Global Operations
  • Product Boards
  • Sourcing Boards
  • Legal
  • Finance
  • Communication
  • HR Exec Team

Sustainability Risk Management Processes

  • Materiality
  • Responsible Sourcing
  • Ethics
  • ISO Coordination



Managing Human Rights risks

As we increase our understanding of how our business impacts human rights, we are putting in place the tools to mitigate and remedy them.

Our impact assessments include a risk analysis of human rights, completed most recently in 2013. In our analyses, we map operations at risk for specific issues using tools such as Verisk Maplecroft, Freedom House for civil and political rights, Human Development Index, (World Bank). Transparency International’s Corruption Perception Index and WWF Water Risk Assessment for water risks.

Electrolux facilities

Tackling many of the issues that emerge from our analysis starts at the local level, with each facility and supplier located in regions we deem as high and medium risk. Our classification is adjusted every year, taking into account the facility’s location and past performance, as well as the number of employees, types of activities, Ethics Helpline records and customer requests. This forms the basis for where we conduct audits. Operations in Latin America, China and Egypt were the focus of audits in 2015.

Human rights screening is part of acquiring new operations. This was the case in the purchase of a new Professional manufacturing site in China this year.

Human rights risks

Right Issue(s) Value chain Context
Freedom of association Industrial relations

Own units


We have operations and suppliers located in countries where this right is restricted and where effective labor/management dialogue is in its infancy.
Conditions at work

Health & safety

Working hours

Own units


Audit findings from both suppliers and our own units continue to indicate room for improvement. Both issues are complex and require constant follow up.

Right to education

Protection of the family

Children's rights

Minimum age Suppliers Risks relate to non-compliance to requirements on working conditions for authorized minors (age 16-18), inadequate procedures to determine age at time of hiring, and occasional findings of children below minimum working age. 
Right to adequate standards of living Compensation

Own units


With operations in low-cost countries, the risks that salary levels do not cover costs for the workers to be able to provide for themselves and their families increases.

Right to life

Right to liberty

Security arrangements

Conflict minerals

Own units


Security providers need to meet high standards to ensure their practices do not raise risks for human rights infringements.

We need to ensure that our procurement of certain minerals do not finance human-rights violations.


Gender equality

Diversity & non-discrimination

Own units


The largest improvement potential here lies in the area of gender diversity.


Based on a long list of potential impacts incurring from our activities, we have identified the above human rights risks as most relevant – or salient – to managing in our operations. This current assessment takes into account:

We monitor performance of these issues through a combination of our Ethics Helpline, management-labor dialogue, health and safety committees, local grievance mechanisms and the Code of Conduct mailbox for suppliers. Employee interviews are also included in our audits, which help capture important issues. We address our findings through local corrective action plans and overall performance is reported to business sectors. We will further develop our approach to identifying and managing these issues in 2016, including Group level and local risk assessments.

A number of Group functions are accountable for both identifying and managing non-financial risks in their area of responsibility. These risks are reported on to Group Management regularly and are also fed into our materiality process. Our approach is outlined further in the Annual report.​


  Drivers What this means for us

The global middle class

An aging population

  • Increasing importance of emerging markets
  • New competitors
  • Growing importance of the silver haired consumer group
  • More smaller households
Access to resources



  • Continuing need to reduce energy use of household appliances
  • Pressure to reduce water consumption in areas with water scarcity
  • Competition for metals and minerals
  • Increasing risk of resource nationalism

Climate change

Chemicals pollutants

  • Rising pressure to improve product energy efficiency and eliminate high impact greenhouse gases
  • Growing focus on chemicals in products
  • Lack of global harmonization in chemical legislation makes chemical management complex for producers

Accelerating technology change

  • Increasing consumer power, making communication and transparency more important
  • Continued trend to improve the environmental performance of appliances
  • Internet of Things will enable online communication between producers and consumers, but increases risks around data privacy