We’re making progress on reducing our climate footprint. In 2024, we continued to develop energy-efficient products, 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%.
Driving climate action through more energy-efficient products
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’re not only committed to delivering energy-efficient products — we empower consumers to make smart choices to get the most out of their products and use them more sustainably,” says Tomas Dahlman, Head of Climate & Green Financing. “To encourage consumers to choose more efficient products at the point of purchase, we’ve launched Electrolux and AEG Ecoline, and EcoPlus to highlight our most energy-efficient offerings in Europe and Brazil respectively.”
Importantly, many of our product sales websites around the world now use the Youreko energy savings tool to showcase how much money energy-efficient products can save consumers over their life-time. This empowers them to make more sustainable choices that benefit both the planet and their wallets.
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 our products that use refrigerants, we are transitioning to low Global Warming Potential and hydrocarbon (HCs) refrigerants, which have a significantly lower climate impact.
“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.