How we measure progress
- Energy efficiency (energy used per unit produced).
- Water efficiency (water used per unit produced).
- Proportion of manufacturing sites with a certified energy management system.
- Proportion of renewable energy.
- Number of factories where the Zero Landfill program is implemented.
Through ambitious targets and by integrating our goals into the Group’s manufacturing system, we’ve demonstrated real progress in reducing our CO2 footprint in our operations.
Year on year, we have shown that ambitious targets, together with integrating our strategy into Electrolux Manufacturing System, considerably reduces our CO2 footprint. Average energy consumption per unit produced has decreased by 3% since 2015, and in the same period the average CO2 emissions per unit has decreased by 25%. The improvement in CO2 in Europe is the result of a shift to renewable electricity. But the benefits don’t stop there: had we maintained the same relative energy levels as in 2005, Electrolux would have had to pay SEK 425m in 2016 in additional energy costs.
Since 2005, our performance has resulted in decoupling revenue growth from CO2 emissions. We have achieved a savings of 293,000 tonnes of CO2 equivalent in operations between 2005 and 2016, while the Group’s revenue has increased by 20%. This represents a 50% reduction in absolute CO2 emissions compared to 2005.
This year, our efforts have focused on efficiency investments and their further integration into our operations and throughout our supply chain. We have:
- Implemented our Energy Action Plan, including individual annual targets per plant, with 2015 as a baseline. We have committed to a 20% energy reduction by 2020, and a 5% reduction in water consumption per year for manufacturing sites in water-stressed regions.
- Formulated an investment strategy for energy-efficient equipment and processes.
- Set a new target to reach 50% renewable energy by 2020.
- Gathered energy data from 56% of our OEM supplier base. Our ambition is to encourage key suppliers to set their own targets for energy reduction.
The ISO 50001 energy management system has been implemented at 3 Electrolux sites to date, and several more are in the process of certification.
In 2016, 13 Electrolux manufacturing sites in Europe procured 100% of their electricity from renewable sources, which reduced our total emissions in Europe by 60%, and 20% as a Group.
The Zero Landfill program spread in 2016. Four pilot factories, in Europe, North America, Latin America and Asia Pacific, have started implementing the program. The program focuses on the re-use of materials and waste reduction by identifying waste generation points and opportunities for material re-use.
In the last decade of reducing our energy use, we have prioritized investments with optimal payback periods.
As our performance improves, it is becoming increasingly challenging to realize new savings with good payback periods. We are ready to raise our level of ambition with the use of renewable energy sources, such as hydro, solar, wind and biomass. We will also apply the lessons learned from existing onsite renewable installations and explore new projects around the world.