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

9. Improve sustainability in the supply chain

Our products are to be made in the same way throughout our global supply chain – with respect for the people who made them and care for the environment.

The promise

Electrolux will ensure that all suppliers live up to our high expectations, no matter where they are located and we will support the transition to more sustainable practices.

The roadmap to 2020

  • Focus on our direct suppliers of components, finished goods and licensed products and services and engage selectively further up the supply chain.
  • Screen supplier candidates to check that their standards are in line with ours, and audit critical suppliers at least every second year.
  • Increase awareness and capabilities among our potential and existing suppliers through training and dialogue to help them improve their own sustainability performance, including energy and water management.
  • Through our power as a transport buyer, improve the CO2 efficiency of our transportation by 15% over five years and increase our use of alternatives to road transportation, year on year.

The case for action

Electrolux has high standards for environmental, labor, anti-corruption and human rights practices, and we expect our suppliers to live up to them, too.

As a global company, we have a duty to drive improvement in this area, especially as more of our business is conducted in emerging markets. Our responsible sourcing program has been ongoing since 2006, and we introduced even stricter audit standards in 2015. From our own experience, we know that raised sustainability performance—particularly in health and safety and energy use—improves the bottom line. We want to pass on this knowledge, working together with our suppliers strengthens relationships, benefitting us both.

We have longer-term contracts with an estimated 15% of our suppliers. Between 2013 and 2015, we reduced our direct material supplier base by over 15%, while increasing our spend to the same degree. With fewer suppliers, we can build tighter relationships and better partner with them on issues such as quality and productivity. This also sets the scene for strategic partnerships on shared sustainability goals.

We need to reduce CO2 not just through our own operations, but also across our value chain. Transport is a significant contributor to climate change and, as a transport buyer, Electrolux can help drive change towards a more sustainable logistics industry.

Electrolux emits more CO2 in distributing its goods than is emitted through the energy consumed in Group operations: about 330,000 tonnes are emitted through transport via ocean, land and air in Europe, North America and Brazil.

This promise will contribute to the Climate Target 2020

Progress on this promise