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

Managing sustainability risks

A 360o analysis of risk requires insights from Group Management, the function level and local facilities. That’s why identifying and addressing non-financial risks is a cross-functional responsibility. 

At Electrolux, we focus on the future to pinpoint and prepare for a changing business landscape. The emergence of a global middle class, the growth of megacities, the urgency of climate change, chemical pollutants, access to water, energy and raw materials, and breakthrough technologies will all impact the way we do business, and how we are perceived as a company. Understanding and managing the non-financial risks and opportunities associated with these macro drivers is an integrated part of managing our business.

  Drivers What this means for us

The global middle class
An aging population

Increasing importance of emerging markets.

New competitors.

Growing importance of the silver haired consumer group.

More smaller households.

Access to resources




Continuing need to reduce the energy use of household appliances.

Pressure to reduce water consumption in areas with water scarcity.

Increasing risk of resource nationalism.


Climate change

Chemicals pollutants

Increasing pressure to improve product energy efficiency and eliminate high impact greenhouse gases.

Growing concern over chemicals in products.

Lack of global harmonization in chemical legislation makes chemical management complex for producers.



Increasing consumer power, making communication and transparency more important.

Internet of Things will enable online communication between producers and consumers, but increases risks around data privacy.

Production must adapt to more automated processes to stay competitive.

A number of Group functions are accountable for both identifying and managing non-financial risks in their area of responsibility. These risks are reported to Group Management regularly and are also fed into our materiality process. Our approach is outlined further in the Annual report.​

Management Assurance and Special Assignments

Evaluates and improves governance, internal control and risk management processes

Group Risk Management

Benchmarks and monitors key risks in operations and key suppliers

Sustainability Risk Management Processes
Responsible Sourcing
Human rights
ISO Coordinatione

Other Group Staffs & Functions

Global Industrial Operations
Product Lines
HR Exec Team

Group External Affairs Committee
Monitors regulatory development across all regions and develops Group common positions

Human Rights risks

As we increase our understanding of how our business impacts human rights, we are putting the tools in place to mitigate and remedy them. This is an ongoing process where we have made important progress the last few years. The results build on the involvement and dialogue with internal and external stakeholders.

Progress in 2016

During 2016, we developed a methodology to identify and assess human rights impacts, aligned with the UNGP framework. The human rights impact assessment was piloted on a corporate level, resulting in a list over Electrolux salient human rights issues. In 2017, the methodology will be used to conduct local human rights assessments, directly integrating stakeholder perspectives and with a focus on high-risk locations.

Salient human rights issues

As a result of the human rights impact assessment, Electrolux has reviewed the most salient human rights issues with respect to likelihood and severity of the potential harm to people. These entail six specific issues and three business processes, presented in the overview below and in more detail in the related sections.


  • Industrial relations
  • Working hours & wages
  • Diversity & non-discrimination
  • Privacy & Integrity
  • Purchase of sexual services during business travel/representation
  • Corruption and bribery

Business processes

  • Supply chain management
  • Acquisitions
  • Market entry & partners