Ongoing dialogue with stakeholders helps us define and deliver on our promises, and keep ahead of global developments.
Our promises cover actions along our value chain, from sourcing to end-of-life. This means we can’t deliver on our ambitions on our own – and that engaging with our stakeholders is critical. To realize our vision, we depend on our customers, consumers, employees and shareholders, so their insights play a particular role in our engagement process.
We welcome the Sustainable Development Goals (SDGs) launched by the UN in 2015. The SDGs provide a valuable framework for businesses such as Electrolux to contribute positively toward today’s global challenges. As a sustainability leader in the appliance industry, we see that we have a key role to play in goal number 8, ‘Decent work and economic growth’; goal number 12, ‘Responsible consumption and production’ and goal number 13, ‘Climate action’.
Other relevant SDGs for Electrolux are goals 2, 3, 4, 5, 6 and 7. In this report, the SDG icons placed by our ‘For the Better’ promises indicate the relationships between our promises and the goals. Our promise targets strive to contribute toward the SDGs indicated.
Within Electrolux, Sustainability Affairs oversees dialogue on sustainability-related issues with a wide range of internal and external groups. Feedback from these activities is reported to Group Management and feeds into our decision-making to strengthen company strategy and response. An ongoing challenge is to systemize local stakeholder dialogue to ensure that local voices are heard consistently.
| Key stakeholder group | How Electrolux has engaged | The impact on our sustainability approach |
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| Consumers |
Bi-annual brand scorecard on sustainability: We surveyed 200 consumers per market per month in Australia, Brazil, China, France, Germany and the US. In 2014, 69% of consumers interviewed said that environmental impacts were one of the most important factors when buying an appliance. |
Developed ‘For the better’, a communications platform to involve consumers (and employees) in meaningful dialogue on sustainability.
The results of the 2016 brand scorecard survey will be ready during 2017.
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| Customers | Partnerships with specific customers. Dialogue on sustainability is expanding into more markets. Engagement is becoming long-term and strategic. |
Collaborated in areas such as chemicals handling and recycled materials. We discussed criteria and evaluated our process for supply chain monitoring. Our newly-initiated renewable energy projects were inspired by a major customer, and has led to our wider commitment to renewables. |
| Electrolux Professional: Continuous meetings with customers and key stakeholders from all continents to share learnings and discuss sustainable solutions for Professional kitchens and laundries. Topics included are: Energy-efficient products, hygiene, ergonomics, connectivity, customer service, education and training. | Customer insights contribute to raising awareness in the market on the importance of an energy efficient Professional product offering. |
| Investors | In response to a significant growth of share of capital being managed under ESG (environmental, social and governance) mandates, Electrolux is engaging with investors and shareholders on sustainability matters, most recently by inviting key shareholders to present and discuss sustainability in September, 2016. Six of Electrolux ten largest shareholders are signatories to the UN Principles for Responsible Investments. |
Incorporated feedback from investors into priorities for our nine promises in 2014 and 2015.
Enhanced our reporting and activities on CO2 reduction in response to our disclosure to CDP. |
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| Employees |
Ongoing dialogue between management and employee representatives and unions. Topics covered include updates on restructuring plans, feedback on business development, Code of Conduct education, the Ethics Helpline and H&S performance. Examples include:
The head of Industrial Relations and union representatives meet prior to each Board of Directors meeting. 42 of our 49 manufacturing units have local employee-management committees, and all have local H&S committees. |
Integrated views into strategic and operational activities on local, market and Group levels. At local level, collective agreements are in place for 57% of the workforce.
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| Employee Engagement Survey 2016: 80% of employees believe that sustainability is a natural part of their everyday work and 74% are proud of how the company demonstrates its environmental and social responsibility. |
Via the Electrolux global intranet, employees accessed several local and global articles, presentations and films with focus on sustainability during 2016. Viewership of sustainability tagged articles grew five fold in 2016 compared to 2015. |
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| Key supporter of AIESEC, the world's largest student organization and an international platform for young people to explore and develop their leadership potential. |
In 2016, we built on our strategic partnership with AIESEC, to incorporate the partnership ‘Feed the Planet’ – which collaborates with local community projects. In 2017, we will continue our work on creating awareness of our sustainability priorities and ambitions and, together with AIESEC, focus on finding talent within the areas of Science, Technology, Engineering and Mathmatics (STEM pilot program).
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| Suppliers | 2016 was the sixth year of dialogue with key OEMs on energy management. During the year, a mandatory energy improvement target was introduced, as well as mapping water usage and management. Increased scope of supplier capacity building on Code of Conduct through e-learning |
Our level of ambition was communicated and we aggregated energy and water data for 56 (80) % of our OEM supplier spend. Provided online training on our Code of Conduct to critical suppliers in seven markets.
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Continued dialogue with the logistics industry in 2016 to share best practice in transport management. Member of US Environmental Protection Agency-led SmartWay, with a commitment to reduce road transport related emissions. |
As part of the BSR Clean Cargo initiative, we stipulate that Electrolux’s shipping providers must be BSR members.
The Group continued to evaluate environmental performance of logistics companies. The results were included in our supplier-evaluation process in 2016.
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| Industry peers |
Shared best practice on setting stretch targets for renewable energy. Shared best practice on human rights, including at the Ethical Trade Initiative (ETI) conference, the Swedish Network on Business & Human Rights and UNICEF.
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Set a 50% renewable energy target, and committed to use only renewable energy at 13 manufacturing sites in Europe.
Insights provided input into Promises ‘Always act ethically and respect human rights’, ‘Provide sustainable solutions for everyone’ and ‘Be a force for good’.
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| NGOs, academia and governmental initiatives | Attended multi-stakeholder meetings, in which NGOs raised issues such as human rights due diligence, responsible taxation, food and social innovation, education and empowering consumers. | Relevant issues are part of our materiality analysis. |
| Took part in United for Efficiency, a UNEP-led project to develop recommendations on how emerging markets can ‘leapfrog’ to greater energy efficiency. | Formulated our Promise ‘Provide sustainable solutions for everyone’, to bring efficient products to new consumers. | |
| Exchanged ideas with the European Environmental Bureau on energy efficiency and labeling. |
Input to our public policy initiatives in Europe on labeling. |
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| Presented our strategy to increase the use of recycled plastic in our products in several different contexts, from multi-stakeholder conferences, to meetings at Chatham House and with the Environmental Ministers of the OECD countries. | Input on our material efficiency strategy, exchange of best practices with leaders in this field. |