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Annual Report 2016 Executive statements Key priorities Progress 2016 Key processes Case studies Reporting framework

Safe and sound operations at our suppliers

Electrolux’s promise is clear – we will ensure that all suppliers live up to our high expectations on labor and human rights and environmental management, no matter where they are located. The only way to achieve this is to continuously work together. 

Clarity rules

“We want suppliers to realize that being a good employer and protecting the environment is not primarily about compliance, but about running a sound, future-oriented business,” says Cecilia Nord, Group Sustainability Director Responsible Sourcing.

The Group’s supply chain monitoring focuses on direct suppliers of components, finished goods and licensed products and services. The Electrolux Code of Conduct is the backbone of the supply chain efforts, and the Responsible Sourcing Program makes the difference in the field.

Being safe at work

The approach involves assessing risks, systematically monitoring suppliers and supporting suppliers’ improvement efforts. Electrolux conducts both country and supplier-by-supplier risk assessments, and these evaluations help our direct monitoring efforts. Potential suppliers are screened and critical existing suppliers are audited at least every second year.

In 2016, 471 audits were carried out to verify safety, labor and human rights, environmental management and governance among Electrolux suppliers around the world.

Jesus Garcia

Years with Electrolux: 6
28 years in manufacturing (the maquiladora industry in Ciudad Juarez)
Education: Industrial engineer, majored in total quality
Outside of work: Enjoys mountain biking


Nesreen Mosallam

Years with Electrolux: 6
Experience: Quality manager at the Electrolux cooker factory outside of Cairo
Education: Mechanical engineer
Favorite CoC section: Safety and environment

Supplier audits in 2016

Latin America: 122
North America: 2
Europe, Middle East and Africa: 113
Asia Pacific: 234


Responsible sourcing everywhere

In many cases, Electrolux has higher requirements than the local legislation and practices in place, which means that we raise the bar for suppliers when we start auditing them.

Latin America and North America: The number of findings per audit at suppliers decreased from 12.78 to 9.73 between 2015 and 2016. This makes this part of the world best in class. Mexico had only 6.27 findings per audit and the largest improvement (82%) between initial and follow-up audit in 2016, which is far above the global average of 57%. In Brazil, an increased incidence of certain kinds of findings, such as those relating to health and safety, can be partially explained by the economic downturn in the country.

Europe, the Middle East and Africa: EMEA has seen a significant drop in supplier findings per audit from, 12.2 in 2015 to 10.01 in 2016. All types of findings have decreased. The improvement rate between the initial and follow-up audit of 59% remains unchanged from last year.

Asia Pacific: The findings per audit have improved slightly, but there is an increase in the number of certain kind of findings – for instance regarding compensation violations, as well as environmental management. We expect the findings to continue in 2017, as we are increasing our focus on suppliers in South East Asia.

This case study is related to our promise Improve sustainability in the supply chain