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

Management approach

The Group’s operational values affirm the corporate culture and commitment to sound and universal ethical business practices. They are defined as ethics, integrity, respect, diversity, safety and the environment. As an endorser of the UN Global Compact, Electrolux aligns the management of the company with universal principles. These include the environment, labor and human rights through Group codes and policies, both internally and along the supply chain. 

The following tables cover Global Reporting Initiative (GRI) aspects that are deemed material to the Group’s operations. The most relevant aspects are integrated into the nine ‘For the Better’ Promises and our approach is outlined under each related promise in other areas of this report, most notably under ‘Progress 2016’. The aspects have been clustered if they have a common management approach or policy.

Sustainability governance

Our framework for sustainability leadership – For the Better – is directly overseen by our Group Management. Group Management and Sector Management teams have been engaged in the development of the priorities and objectives for our nine promises. In 2016, this involved further definitions of KPIs and targets for the framework, and formal support for the approaches to human rights and social investment. During the year, Group Management also approved a position paper on Climate Change and another on Product Recycling Sustainability, which were both part of the agenda of two Group Management meetings during 2016. 

Each business sector is responsible for contributing to the fulfilment of the group targets under the nine promises and several of the KPIs are broken down and followed up at sector level. 

In order to drive the agenda forward on specific sustainability related topics, a number of reference groups and steering groups with Group Management and Senior management participation are in place for various programs, e.g. the Ethics & Human Rights Steering Group (EVP of HR, General Legal Counsel, VP Sustainability, VP Corporate Communications), the Connectivity Forum (COO), and Global Industrial Operations (operational efficiency and health & safety).

Group Sustainability Affairs is the expert function within the group that drives the development of the sustainability agenda, supports the business to enable the efficient integration of sustainability throughout operations, and follows up on results.


For 2016 information regarding our economic management approach and reporting practices, see Accounting principles and Market information. Financial objectives are presented in our Mission - financial goals.


Policies and governance

The Electrolux Environmental Policy outlines how Electrolux intends to improve environmental performance in production and product use, as well as how to design products for disposal. A description of how to meet expectations in our own operations and among suppliers is available in the Workplace Standard.

Electrolux applies a product lifecycle approach to managing environmental impacts, which takes into account all phases of a product’s lifecycle: from supplier impacts through to transport, manufacturing and product use. We also apply the precautionary principle - whereby we act responsibly despite not having the full scientific knowledge of negative impacts - to ensure we stay ahead of potential risks, such as in managing chemicals.

Each business area is required by Group Management to implement an environmental management system throughout its operations. All operations with 50 employees or more are expected to have ISO 14001 certification.

Auditing and Monitoring outlines how operations and suppliers meet Group expectations and commitments.


Aspect Policy, governance and commitments Responsibility & resources Training and specific actions 

Responsibility lies with each business area. The goal is monitored and coordinated through our Sustainability Affairs function. 


As outlined in the Promise Improve sustainability in the supply chain.

All our shipping suppliers must be a member of Business for Social Responsibility’s Clean Cargo Working Group to standardize calculations for emissions.

Developed the partnership with Maersk Line to improve sustainability performance of shipping transport. 

Supplier environmental assessments

Outlined in the Code of Conduct and Workplace Standard. Code of Conduct compliance is mandatory and non-negotiable parts of evaluating potential and existing suppliers.


Workplace Standard outlines that OEM and ODM suppliers must measure and monitor their energy use and report it through the energy-reporting standard. 

As of this year, they must report on water impacts as per WWF’s Water Risk Filter.

Responsibility lies with each Business Area’s Sourcing Board, with the support of the Responsible Sourcing Team and Sustainability Affairs.


As outlined in Promise Improve sustainability in the supply chain

Approximately 56(80)% of OEM suppliers report on their energy use


At present, supplier energy consumption is not integrated into the Group’s external reporting of energy use.


Applied WWF’s Water Risk Filter to help map locations at risk of water stress.