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Annual Report 2016 Report by the Board of Directors Notes Proposed distribution of earnings Auditors' report Eleven-year review Review by business area

Sustainability and environmental facts

Electrolux retains global industry leadership in Dow Jones Sustainability Index 2016

For the tenth consecutive year, Electrolux has been named Industry Leader in the Household Durables category in the prestigious Dow Jones Sustainability World Index (DJSI World). In this annual assessment, published by Robeco­SAM, Electrolux demonstrated a notably big improvement in the area of corporate citizenship and philanthropy.

For more information on Electrolux and sustainability, read the full sustainability report included in the on-line Annual Report.

Environmental activities

At the end of 2016, Electrolux operated 49 manufacturing facilities in 18 countries. Manufacturing comprises mainly assembly of components made by suppliers. Other processes include metalworking, molding of plastics, painting and enameling.

Chemicals such as lubricants and cleaning fluids are used as process aids. Chemicals used in Group products include insulation materials, paint and enamel. Production processes generate an environmental impact through the use of energy and water, as well as water and air-borne emissions, waste and noise.

Studies of the total environmental impact of the Group’s products during their entire lifetime, i.e., from production and use to recycling, indicate that the greatest environmental impact is generated when the products are used. Electrolux aims to develop and actively promote increased sales of products with lower environmental impact.

Mandatory permits and notification in Sweden and elsewhere

Electrolux operates three plants in Sweden, which account for approximately 1.7% of the total value of the Group’s production. Permits are required by authorities for two of these plants and are also required to submit notification. The permits cover such areas as thresholds or maximum permissible values for air and water-borne emissions and noise. No significant non-compliance with Swedish environmental legislation was reported in 2016.

Manufacturing units in other countries adjust their operations, apply for necessary permits and report to the authorities in accordance with local legislation. The Group follows a precautionary principle with reference to both acquisitions of new plants and continuous operations. Potential non-compliance, disputes or items that pose a material financial risk are reported to Group level in accordance with Group policy. No such significant item was reported in 2016.

Electrolux products are affected by legislation in ­various markets, principally involving energy consumption, ­producer responsibility for recycling, and restriction and management of hazardous substances. Electrolux continuously monitors changes in legislation, and both product development and manufacturing are adjusted to reflect these changes.