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 Goal

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 Goal

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 toward 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

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.

By better aligning our suppliers with our environmental and social standards, we can significantly enhance the sustainability performance of our value chain. We partner with suppliers that have an essential role in supplying fundamental components or due to their size, as identified by the Electrolux Purchasing, Sourcing and Licensing teams. Our long-term partnership with them is key to implement our strategy and to help ensure a responsible and sustainable supply chain.

Responsible sourcing

We work together with our suppliers to ensure they abide by our requirements and set the performance targets to continuously improve. Our 1,700+ 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 operations. They cover our environmental, health and safety and human rights requirements for suppliers to follow. In 2021, we updated our Workplace Directive, which increased the standards that our suppliers are requested to comply with.

In close cooperation with the Electrolux Purchasing, Sourcing and Licensing, organizations, we demand high standards of performance. This involves proactively screening prospective suppliers. We also reward suppliers based on their performance by offering good performers more business. We drive our initiatives further up our supply chain by working more closely with our tier one suppliers and by directly including selected tier two suppliers.

Read more about our work with responsible sourcing.

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 with our suppliers to drive this agenda throughout our supply chain.

Supplier environmental footprints

We work to implement and drive plans to reduce the environmental impacts of our suppliers. This involves reducing greenhouse gas emissions, energy consumption and water use within our value chain. We share our knowledge with suppliers, provide tools to evaluate their environmental footprint, define suitable improvement activities and reward progress and proactivity. We request our strategic suppliers to report their climate impact through CDP.

Logistics

We use our purchasing power to influence the logistics industry by developing more sustainable transport solutions together with our partners. We also set environmental requirements in the tender process – i.e. 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 1,700+ direct suppliers.
  • Suppliers lacking access to renewable energy and more sustainable modes of transport struggle to meet our low-carbon objectives.
  • Local politics and differences in work culture can be obstacles to working with sustainability topics.