A holistic approach based on value creation and engagement is driving sustainable procurement throughout the Electrolux Group supply chain.
“A fundamental part of our strategy is constantly raising the bar when it comes to labor, human rights, health and safety standards in our value chain together with our suppliers and partners,” says Ewerton Gruba, Director Global Responsible Sourcing. “A holistic approach covering both social and environmental topics in our value chain is essential for our business.”
In 2022, a Responsible Sourcing scoring model was implemented globally to be used in sourcing decisions that reward and promote good supplier performance on sustainability as well as to improve underperforming suppliers.
Promoting climate responsibility across the supply chain
“With company supply chain emissions being on average 12 times higher than operational emissions, we recognize that working with suppliers is vital to reducing our overall carbon footprint as we look to reach net-zero emissions throughout our value chain by 2050,” says Carla De Luca, Senior Program Manager Group Purchasing. “Our holistic approach to sustainable procurement ensures we take better informed decisions to make our company sustainability goals a reality.”
“In our supplier training sessions, we raise awareness that sustainability can actually leverage cost reductions, for example through energy and resource efficiency,” says De Luca. “Our value-based approach to purchasing takes a much broader perspective on value than just cost, which is both good for business and a more sustainable world.”
Suppliers have been encouraged to start measuring their carbon footprint, set emission reduction targets and start reducing their emissions, which promotes climate benefit as well as helps them to reduce costs.
“I am really proud of our suppliers who I have spent a lot of time engaging with to make sure they are on board with our sustainability approach,” says De Luca.
The importance of supplier engagement
Engaging and collaborating with suppliers has been key. In 2022, Electrolux Group was the only CDP member company in the world with a 100% supplier response rate (among 250+ customers with over 150 suppliers engaged).
“As companies have an average response rate of 65-70%, we have a clear advantage when we engage with our supply chain,” claims De Luca. “Collaboration is also important as it allows us to share best practice and build on all our expertise and experience – both within Electrolux Group and among our suppliers.”
Another example of collaboration is the supplier improvement program in Egypt in cooperation with the International Labor Organization (ILO). Five Electrolux Group material suppliers from Egypt participated in a three-month improvement and development journey as part of the ILO program SCORE – Sustaining Competitive and Responsible Enterprises. The program was led by industry experts and included practical training and an in-factory counselling program.
“I am convinced that the learnings from this project – everything from how improvement projects are managed and performed to achieve the best results, to actual identified best practices – can be documented and internalized within the Group,” says Jorgen Lisspers Karlsson, Manager Responsible Sourcing, Group Sustainably. “We will share the learnings in our future training sessions, instructions and internal development projects around the world.