Drive supply chain sustainability

Our products are to be made in the same way throughout our global supply chain – with respect for the people who made them and care for the environment.

Our promise

Electrolux will take its sustainability leadership agenda into the supply chain. We will work with suppliers so they can live up to our high expectations, no matter where they are located, and we will drive and support the transition to more sustainable practices.

Read more about our progress on this Promise

Roadmap 2020 to 2030

  • Secure compliance to Electrolux principles among our direct suppliers of components, finished goods, licensed products and services. Engage in high-priority geographies and topics further up the supply chain.
  • Ensure transparency in mineral and material supply chains from high-risk areas, working towards a conflict free supply chain by 2025.
  • Drive the environmental performance of all strategic suppliers on key metrics, aiming to help them to be climate neutral by 2030 – toward a carbon neutral supply chain by 2050.
  • Build partnerships with suppliers of all categories to contribute toward the Electrolux sustainability priorities.
  • Halve our transport emissions by 2025 and make our logistics climate neutral by 2030.

The case for action

Our industry is dependent on complex supply chains and our overall sustainability impact often depends on decisions made in our supply chain. As a sustainability leader, we have an obligation to take ownership and see our suppliers as an extension of ourselves.

This means that we expect suppliers to support our sustainability agenda by actively working to improve their own performance. This promotes progress, not only in our own supply chains, but for supply chains around the world.

Logistics is also a key area in our supply chain as Electrolux emits more CO2 in distributing its goods than is emitted through the energy consumed in Group operations. Around 300,000 metric tons are annually emitted through the global transportation of our goods via sea, air and land.

Our approach

Our experience shows that enhanced sustainability performance can be a competitive advantage, particularly in energy use, and health and safety, which improves the bottom line. We pass on this knowledge by working together with suppliers to strengthen relationships, and ultimately create mutual benefit.

We work to form special partnerships with our most strategic suppliers. Such suppliers are identified by the Electrolux Purchasing and sourcing teams and may play an essential role in our supply chain by supplying fundamental components or due to their size. Establishing long-term partnerships is fundamentally important to our strategies as it enables us to ensure a responsible and sustainable supply chain in the future.

Responsible sourcing

We work together with our direct suppliers as an active partner to ensure they abide by our requirements and have the performance targets to continuously improve. Our +2,000 direct suppliers are required to live up to our Supplier Workplace Standard and Workplace Directive, which are equivalent to the Workplace Policy and Workplace Directive that apply to our own entities. They cover our environmental, health and safety and human rights requirements for suppliers to follow.

In close cooperation with the Electrolux Purchasing and sourcing organizations, we demand high standards of performance among our suppliers. This involves proactively screening prospective suppliers to ensure they can live up to our high standards and contribute to our ambitions. We also want to reward suppliers based on their performance by enabling good performers to win more business – to increasingly build our supply chain on our best performing suppliers. We drive our initiatives further up our supply chain by working more closely together with our tier one suppliers and by directly including selected tier two suppliers.

More on our Responsible sourcing here

Conflict minerals

The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas is embedded into our policies and activities to avoid sourcing conflict minerals. Our objective is to ensure conflict free smelters by 2025 and we work actively to drive this agenda throughout our supply chain by working with our direct suppliers.

Supplier environmental footprints

We work to implement and drive environmental programs that reduce the environmental impacts of our suppliers. These programs involve reducing greenhouse gas emissions, energy consumption and water use within our value chain. We share our knowledge with suppliers, provide tools to assist them in evaluating their environmental footprint and define suitable improvement activities, and reward progress and proactivity. We request our most strategic suppliers to report their climate impact through CDP.

Logistics

Approximately 300,000 metric tons of CO2 are emitted through the distribution of our goods by sea, air and land transportation in Europe, North America and Brazil each year.

We use our purchasing power to influence the logistics industry by developing more sustainable transport solutions together with our logistics partners. We also set environmental requirements in the tender process, and all shipping companies must be members of the BSR Clean Cargo initiative.

Challenges

  • Ensuring high sustainability performance throughout our value chain beyond direct suppliers.
  • Adopting a collaborative approach with industry peers to bring about greater positive change among our shared suppliers.
  • Monitoring and auditing our +2,000 direct suppliers involves capacity challenges for Electrolux.
  • Suppliers in some regions that lack access to renewable energy and more sustainable modes of transport will struggle to meet our low-carbon objectives.
  • Local politics, and differences in work culture can sometimes resist and create obstacles to working with sustainability topics, which makes it difficult to bring about positive change.