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.
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.
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.
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Procent of total | 92 | 91 | 94 | 96 | 93 |
The share of factories with more than 50 employees that have certified ISO14001 environmental management systems.
| Aspect | Policy, governance and commitments | Responsibility & resources | Training and specific actions |
|---|---|---|---|
| Transport |
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. |
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| 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. |
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. |
We support labor rights as set out by the ILO Core Conventions and the Declaration on Fundamental Principles and Rights at Work. We have an International Framework Agreement with the global unions, affirming our commitments in this area. Our Code of Conduct and Workplace Standard apply in equal measure to Electrolux’s operations and throughout the supply chain.
The report section on auditing and monitoring outlines how operations and suppliers meet Group expectations and commitments.
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Aspect |
Policy, governance and commitments | Responsibility and resources | Training and specific actions |
|---|---|---|---|
| Investment | Human rights screening is included in our acquisition processes of new operations. | Responsibility lies with each business area line management, supported by Group Legal and Sustainability functions. | This was the case in the purchase of a new Professional manufacturing site in China in 2015. |
| Non-discrimination, child labor, forced or compulsory labor |
Specified in the Code of Conduct and Workplace Standard.
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Responsibility lies with each unit’s line management, including communication requirements within their unit through training, and annually assessing the unit’s performance.
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Group-wide Code of Conduct e-learning was launched in 2015 and continued in 2016. Code of Conduct compliance is reviewed and discussed with employee representatives on an ad hoc and annual basis. Dialogue covers the outcomes of Code of Conduct assessments and internal audits, an overview of cases reported through the Ethics Helpline and general improvement areas. Code of Conduct compliance and general improvement areas are discussed with employee representatives. Topics can include outcomes of Code of Conduct assessments and internal audits, and overview of cases reported through the Ethics Helpline. |
| Occupational health and safety |
Specified in the Code of Conduct and Workplace Standard. A Safety Management System is in place that covers all manufacturing facilities. Each facility has developed a plan to contribute to the group-wide goal. The overriding aim is to prevent injuries and environmental incidents from occurring in the first place.
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The Global Industrial Operations safety team defines goals, monitors progress, shares best practice and implements the monthly recording system and daily incident reports, in order to align according to production groups, regions and product line.
As outlined in the Promise Ensure the best health and safety. |
Ongoing local workshops and training on safety procedures, reporting systems and certification programs. Global Safety Day, designed to engage employees in manufacturing, and inform of the ‘best performing’ and ‘most improved’ regional facilities. |
| Training and education |
One of the focus areas of the People Plan is to become a Learning Organization. The company’s training and education program is built on the 70-20-10 learning model. 70% of the learning is achieved through challenging assignments and on-the-job experience, 20% of the learning is developed through relationships, networks, and feedback and 10% of the learning is delivered via formal training processes. |
Responsibility lies with each unit’s line management, supported by each business area and Group HR functions. | On average, white-collar employees received 13 (17) hours of training in 2016. |
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| Employment, Diversity and equal opportunity |
As specified in the Code of Conduct and Workplace Standard. A component of the Business Strategy, the People Plan, describes our aim to become a high performing learning organization with the right people in the right jobs. The Appointment of Senior Managers, the Recruitment and Internal Transfer Policy, and the Grandparent principle – are designed to ensure fair and transparent hiring practices – together with the Compensation Policy and Pension.
As outlined in the Promise Always act ethically and respect human rights.
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Senior Vice President of Human Resources sets the People Plan, and is responsible for the HR-related policies. Implementation of policies and remuneration are managed through sector responsibility.
As part of the Talent Planning process for the Top 200 positions, opportunities for promoting women are constantly reviewed. |
Through performance appraisals and talent reviews, we evaluate the performance of our people and focus on their development, whilst at the same time promoting diversity and equal opportunies. Through appraisals and talent reviews, we evaluate our people and focus on their development. The annual Employee Engagement Survey measures employee engagement and their perceptions on equal opportunities and diversity. The continous assessment of HR data provide us an insight into our progress. We focus on stimulating our ways of working to attract, develop and retain more female qualified candidates for first time leadership and project management roles in our core of business. A pilot initiative to increase the proportion of women in R&D positions is planned for 2017.
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| Labor & management relations |
Specified in the Code of Conduct and Workplace Standard. Industrial Relations Strategy. The International Framework Agreement, signed together with the Swedish trade unions IF Metall, Unionen and IndustriAll, informs our strategy. In the agreement, Electrolux and key unions underline the Group’s commitment to maintain the same standards in all countries it operates, specifying core ILO conventions.
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Primary responsibility for realizing the strategy locally lies with the country and local line organizations, supported by HR Country Managers and the Group Industrial Relations function. Best practice is shared across regions through the HR country manager network.
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Dialogue with international unions such as IndustriAll and IF Metall, learnings from experiences in emerging markets, and engagement with investors informed the strategy process. Specialized training on the strategy for line managers is ongoing. Code of Conduct training for employees includes guidance on employee rights for the freedom of association.
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| Supplier assessment for labor practices and human rights |
Specified in the Code of Conduct and Workplace Standard. Code of Conduct compliance is mandatory and non-negotiable parts of evaluating potential and existing suppliers.
As outlined in Promise Improve sustainability in the supply chain.
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Responsibility lies with the Sourcing Boards in each region, with support from the Responsible Sourcing Team.
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Prospective suppliers are required to outline their capabilities and performance in labor, human rights, and environmental management. Electrolux employees in key positions in procurement receive training on the requirements of the Code of Conduct. |
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| Security practices |
Specified in the Code of Conduct and Workplace Standard.
A new Security Program was developed in 2015, covering selection criteria for security providers, requirements for security guards, and incident reporting. |
Primary responsibility for fulfilling the Code and Security Program locally lies with unit line management, supported by the Chief Security Officer. |
The program – including internal inspections and Code of Conduct audits in the supply chain – was implemented during 2016.
Security inspections are performed at all sites and offices in accordance with the Security Program.
Security requirements are included in Code of Conduct training for all employees and line managers, as well as in the ALFA self-assessment for plant managers.
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| Grievance mechanisms for labor practices, human rights. |
In line with Group Policies, we have launched a confidential reporting mechanism – the Ethics Helpline. Employees can report misconduct confidentially and anonymously (where legally permitted) without fear of negative consequences. It can be accessed by 99% of our employees. Suppliers can report possible non-compliances through the Code of Conduct mailbox.
As outlined in the Promise Always act ethically and respect human rights.
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Accountability for the grievance mechanism lies with the Ethics and Human Rights Steering Group, which comprises of representatives from Group Management. Trained investigators are assigned to the cases and are responsible for the investigations, in line with our principles of confidentiality and integrity. Most cases relate to abusive or discriminatory behavior.
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A grievance mechanism was introduced for Electrolux suppliers in 2015. |
| Anti-corruption, anti-competitive behavior |
Specified in the Code of Ethics, Policy on Corruption and Bribery, Policy on Anti-trust and the Code of Conduct.
As outlined in the Promise Always act ethically and respect human rights.
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The Corporate Legal department is responsible for the policies on corruption and bribery, and anti-trust, and for communication and follow up. Management Assurance and Special Assignments (MASA), conducts investigations into reported cases of corruption. The Ethics at Electrolux program, including the Ethics Helpline, is a cross-functional initiative, led by Sustainability Affairs together with Human Resources, Group Legal and Internal Audit (MASA) through the Ethics Steering Group.
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We apply a risk-based approach to training relating to corruption and bribery, targeting policy training for those working in sales, marketing and procurement.
An e-learning on anti-corruption and anti-trust, which was launched in 2015 and continued in 2016, includes training and information for all employees.
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| Public policy |
Overall responsibility for public policies and positions lies with Group Management and functional heads. Coordination of positions and other public affairs matters is managed by the Group External Affairs Committee, consisting of representatives from the business sectors. |
Responsibility for establishing contacts with their respective policy-makers lies with each business area. Public policy initiatives are primarily conducted through industry organizations such as the European Appliance Industry Association (CECED) and the American Home Appliance Manufacturers Association (AHAM). |
2016 key actions Influencing policy in:
Europe EU legislation on circular economy and resource efficiency
EU waste and chemical legislation
Revision of the EU energy label legislation framework
North America Environmental Protection Agency (EPA) rulemaking
Energy efficiency standards
Asia Pacific Revised water efficiency and energy labelling requirements
Chemical regulations
Latin America Recycling regulations in several countries
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