We’re making progress on reducing our climate footprint. In 2024, we continued to develop products designed to support more efficient energy use, set a new ambitious recycled materials target and switched to more low Global Warming Potential refrigerants.
By the end of 2024, we had successfully reduced carbon emissions from our operations (scope 1 and 2) by 36% compared with 2021. Additionally, we decreased our other value chain emissions (scope 3) — mainly from the use of our products — by 31%. Our science-based climate target aims to reduce these two groups of emissions by 85% and 42% respectively, so we’ve made some good progress but still have work to do.
We were proud to receive an A- leadership score from the global non-profit organization CDP for our work to tackle climate change. We’re also involved in the CDP Supply Chain program, which helps our suppliers disclose their emissions and set ambitious targets. In 2024, our CDP supplier response rate was an impressive 98%, well above the industry average of 60%.
Supporting climate action by striving to develop products that are more energy-efficient
Approximately 85% of our value chain carbon emissions are generated by our products during their use phase in the homes of consumers around the world.
“We strive to help consumers identify products with strong energy performance and features designed to help reduce energy use in everyday life,” says Tomas Dahlman, Head of Climate & Green Financing. “To support this, we launched Electrolux EcoLine/AEG EcoLine in Europe and EcoPlus in Brazil.”
Many of our product sales websites around the world now use the Youreko energy savings tool to provide consumers with estimated energy-cost savings over a product’s lifetime based on defined assumptions and usage scenarios. This information helps consumers compare products on the basis of energy performance and expected operating costs.
Renewed focus on low-carbon materials and refrigerants
As the materials in our products are responsible for our second largest source of greenhouse gas emissions, we refined our target to increase the share of recycled plastic and steel used in the products manufactured by the Group to 35% by 2030. This will double the amount of recycled material compared with our previous target.
In products that use refrigerants, we are transitioning to refrigerants with lower Global Warming Potential (GWP), including hydrocarbon (HC) refrigerants. These refrigerants have a lower GWP than the refrigerants they replace.
“Since signing up to the UN-led Cool Coalition initiative in 2019, we have phased out high-impact HFCs from 99% of our products with refrigerants and have a plan to phase out the remaining high- impact HFCs by the end of 2026,” explains Dahlman.
Financing our green transition
Our Green Financing Framework helps us to fund climate investments and other environmental initiatives. We also incentivize our senior management to drive progress on reducing our carbon emissions by linking our long-term incentive (LTI) program to our science-based climate target.
“The framework enables us to access more investors and to secure more favorable interest rates for company loans,” says Dahlman. “These mechanisms play a crucial role in financing our green transition and will enable us to achieve our ambitious climate and sustainability objectives in the years ahead.