Transitioning to clean energy in operations

The Electrolux Group is on an ambitious journey to only source clean energy for its operations.

Electricity accounts for around 60% of the Group’s total energy use and is a key component of its journey to reduce 85% of its emissions in operations (scope 1 and 2) by 2030 compared to 2021.

“We have a long history of continuously driving leaner and greener operations,” explains Tomas Dahlman, Head of Climate and Green Financing. “Our step-by-step approach in recent years has involved improving energy efficiency, shifting to renewable electricity and phasing out fossil fuels in our processes.”

“By continuing to add renewable electricity generation in our operations around the world and switching our remaining sites to fully renewable electricity contracts, we expect to source 100% green electricity throughout our global operations by 2025,” says Dahlman.

Besides electricity, 40% of the Group’s total energy use is currently sourced from natural gas to power some energy-intensive manufacturing processes, such as enameling and painting. The Group has developed a roadmap to phase out the use of fossil fuels from these processes by 2033.

Electrification enables greener operations

“We now use renewable electricity from both on-site solar photovoltaic (PV) generation as well as sourcing renewable electricity through different third-party verified Renewable Energy Certificates. This is helping us to reduce our impact and at the same time increase the demand for renewable energy around the world,” adds Dahlman.

Electrolux Group now has sites with solar PV systems that generate their own electricity in Italy, Mexico, Thailand, Australia, China, South Africa and Sweden. In 2023, these systems avoided greenhouse gas emissions of approximately 5,000 metric tons of CO2e by producing around 10 GWh of electricity, which is equivalent to the annual electricity needs of about 40,000 refrigerators.1)

Renewable power partnerships in Italy and beyond

To speed up the implementation of on and off-site renewable electricity generation, the Group is investigating renewable power purchase agreements (PPAs). Such agreements involve a third-party developer that invests in, installs, owns and operates a wind or large-scale solar PV system.

In 2023, the Electrolux Group factory in Porcia, Italy, agreed an on-site PPA with an energy company to provide 14,740 solar panels that will cover a roof area the size of ten football pitches with a power of 7.4 MWh — enough to power approximately 2,600 Italian homes.

“PPAs are really interesting for us, and off-site agreements can help us overcome space limitations and increase energy generation while helping to secure the renewable electricity we need for the future,” says Dahlman.

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1) Based on the European average consumption of a combi bottom refrigerator.