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Sustainability Report 2017 Case studies

Best-in-class sustainable sourcing

Electrolux has long strived for all suppliers to live up to its high sustainability expectations. We now want to inspire our suppliers to do the same with their partners.

Responsible sourcing everywhere

In many cases, Electrolux has higher requirements than the local legislation and practices in place, which means that we raise the bar for suppliers when we start auditing them. This also means that suggestions and demands for improvement mainly come from us, not from other customers or the local society, impacting on the pace of change. In 2017, we conducted a total of 387 on-site supplier audits:

  • Latin America: 77
  • North America: 10
  • Europe, Middle East and Africa: 69
  • China: 199
  • South and Southeast Asia: 32

Latin America and North America: In 2017, the number of findings per audit at suppliers increased to 12.25 (from 9.73 in 2016) due to a focus on previously not audited suppliers. The rate of findings in Mexico almost doubled. Still it was possible to reach a satisfactory improvement rate of 60% between initial and follow-up audit, comparing to the global average of 48%. In the United States, the program is in its infancy and findings per audit are therefore, as expected, high. Improvement rate, however, is at an encouraging 73%. In Brazil, the situation was similar to 2016.

Europe, Middle East and Africa: EMEA continues to see a significant drop in supplier findings per audit, from 10.01 in 2016 to 7.16. The improvement rate is however only 46%, below the global average.

China: The findings per audit have improved slightly, but there is a persistent high occurrence of certain kinds of findings – for instance, regarding violations in working hour and compensation management – and the improvement rate dropped in 2017 to 39%.

South and Southeast Asia: The findings per audit are, as can be expected, high since the program has just been deployed. Findings are especially common in environmental management. We expect the findings to continue to be high in 2018, as we are expanding our coverage of Southeast Asia.

This case study is related to our promise Improve sustainability in the supply chain.