BETTER Operations
Achieve more with less
We are reducing our own footprint by running efficient operations all around the world.
Our promise
Electrolux will continue to reduce its environmental footprint by shifting to renewables, and optimizing the use of energy and other resources throughout its operations.
Roadmap 2015 to 2020
- Improve energy efficiency at our manufacturing sites and warehouses by 20% by 2020 (baseline 2015), engaging all facilities worldwide
- Reduce water consumption in manufacturing by 5% every year in areas of water stress, until the site has reached optimal levels of efficiency
- Attain energy management certification for our operations around the world
- Increase the proportion of renewable energy for our operations to 50% by 2020
- Implement a Zero Landfill program at all manufacturing sites by 2020
The case for action
This promise applies to everything we do. We aim to run resource-efficient operations as an integral part of our work by applying industry-leading practices. This reflects our values and what we stand for as a company – being part of the solution is important for both our employees and consumers.
Our approach
Operational resource management – including energy, water and waste – is coordinated globally with a common process and strategy wherever in the world we operate. Our Green Spirit program includes criteria related to energy performance, management, engagement and implemented actions that are reviewed annually. The program benefits the environment, reduces our carbon footprint and makes financial savings. We also share best practice among manufacturing sites through the program.
All manufacturing units with over 50 employees must be certified to ISO 14001, and 94% of our factories were certified at the end of 2018. In addition, we are striving to implement the ISO 50001 energy management system at all our manufacturing sites by 2020.
Action plans include energy management, technological investments and employee awareness raising and behavioral change. Every facility reports energy and water consumption data on a monthly basis, and this data is aggregated on a regional and global level against monthly performance indicators. We have both relative and absolute targets for energy consumption.
In addition, our renewable energy target is tracked on an annual basis and reviewed on a Group level. We are raising our level of ambition with renewable energy sources, such as hydro, solar, wind and biomass. We also learn from existing on-site renewable installations and explore new projects around the world.
Our Zero Landfill program has the objective to reduce the amount of waste sent to landfill or incinerated without energy recovery. To achieve this, we work to reduce the waste we generate, and identify opportunities for reusing waste materials.
Challenges
- Following a decade of prioritized investments with good payback periods, it is becoming increasingly challenging to realize new savings with acceptable payback periods
The progress on our promise
How we measure progress
- Energy efficiency (energy used per unit produced).
- Water efficiency (water used per unit produced).
- Proportion of manufacturing sites with a certified energy management system.
- Proportion of renewable energy.
- Number of factories where the Zero Landfill program is implemented.
Electrolux has again been identified as a global leader in responding to climate change by CDP. The CDP Climate Change A list includes an exclusive group of companies, with only 2% of corporate global leaders making the list in 2018.
Energy efficiency
In 2018, we improved our energy efficiency per product by 5.5% compared with the previous year. This was achieved through a continued focus on energy management, technological investments in new equipment, employee awareness and behavioral change, and by implementing best practice throughout our operations.
Operational resource efficiency
Our Green Sprit program, including our Green Sprit rating and certification system, was also crucial in driving energy efficiency. In 2018, we held workshops with internal and external stakeholders as part of the development of Green Sprit 2.0, which will involve developing a completely revised program with more comprehensive criteria and new themes, such as digitalization. We plan to pilot Green Sprit 2.0 in 2019 with test audits in selected Electrolux factories around the world, and the aim of full implementation in 2020.
In 2018, we held four face-to-face Green Spirit summits in North America, Latin America, APAC, and a global summit for the Professional sector. The attendees included people from our manufacturing sites as well as from the regional and global leadership teams. The summits looked into how we can develop our strategy and factory teams were encouraged to share their learnings on best practices. A global meeting with regional leaders was also held to discuss Green Spirt 2.0 and digitalization.
Efficiency improvements in recent years, together with a shift to renewable electricity, has reduced energy consumed at our manufacturing sites per product by around 44% and absolute CO2 emissions by 66% compared with 2005, which equates to an annual financial saving of over SEK 500m. Over this period, the Group's revenue has increased, which illustrates that Electrolux has decoupled revenue growth from CO2 emissions.
In 2018, Electrolux formulated an investment strategy for energy efficient equipment and the optimization of our IT solution by including energy criteria on hardware - i.e. computers, printers and monitors for IT Suppliers. In addition, a quarterly follow up on energy efficiency in our data centers has been introduced.
Energy management systems
We made good progress on implementing the ISO 50001 energy management system, which promotes the more efficient use of energy in our operations. ISO 50001 has been implemented at 25 (8) Electrolux sites to date, and several more are in the process of certification. These include sites in Brazil, Chile, Argentina, Australia, Germany, Italy, Hungary, Thailand, China, Australia and Sweden.
Renewable energy
In 2018, we increased the number of our sites that generate a proportion of their own electricity through photovoltaic solar systems. By the end of 2018, Electrolux has its own solar systems at 9 sites in Italy, Thailand, Australia and Mexico.
In 2018, 24 Electrolux manufacturing sites and several offices in Europe and North America procured 100% of their electricity from renewable energy sources, which contributed toward our 50% renewable energy target by 2020. By the end of 2018, 30% of our total energy purchased was from renewable sources. The shift to renewable energy, together with energy efficiency, has contributed toward an absolute reduction of our CO2 emissions by 47% and CO2 emissions per unit by 47% since 2015.
Water
We made good progress on water efficiency during the year – particularly with factories in water scarce regions. Our water targets are based on the WWF Water Risk Filter, which helps us to identify which of our factories are located in water scarce areas. Decisions around our water targets are based on the tool, and the factories are divided into two groups – Water Risk and Water Management factories.
In 2018, we hosted a conference on water footprinting and water efficiency at our head office as part of the Stockholm World Water Week. The conference was attended by international water experts, businesses and NGOs, and provided us with good stakeholder input on our approach to water issues and the next steps we should take.
The Green Spirt program involves sharing water management best practices, monthly reporting on water performance indicators as well as conducting water mapping. During the year, we began looking at potential secondary uses for process water. Some of our plants are already closed-loop in terms of reusing process water, but we are investigating opportunities in several other facilities. We also use harvested rainwater in manufacturing processes, such as in Thailand, Brazil and Australia.
In 2018, we achieved an overall improved water efficiency in operations of 35% compared with 2015.
In 2018, we responded to the CDP Water program and were rated B.
Zero Landfill program
The global Electrolux Zero Waste to Landfill program has been further developed and expanded since January 2018 to all our factories around the world. The aim of the program is to reduce our environmental footprint, find opportunities for material reuse and recycling and at the same time decrease the amount of waste sent to landfill and/or incinerated without energy recovery.
During the year, the global guidelines that specify the standard indicators and targets to be reached were further developed. At the same time, a common waste database has been applied to all factories. In October 2018, our São Carlos factory in Brazil was our first to achieve Zero Waste to Landfill certification issued by a third party (Intertek). Our target for 2019 is to ensure that all our factories have adopted the Zero waste to Landfill program, with the objective to become Zero Landfill Factories. Going forward, the program will focus on the re-use of materials and waste reduction directly at the sources of waste.
Total direct1) and indirect CO2 gas emissions by weight. (metric kton)
1) Includes contributions from energy use and Green House Gas fugitive emissions
Greenhouse gas (GHG) emissions1) intensity
1) Includes contributions from energy use and Green House Gas emssions
Next steps
| Roadmap 2015 to 2020 | Next steps in 2019 | Status |
|---|---|---|
| Improve the energy efficiency of manufacturing sites and warehouses by 20% by 2020 (baseline 2015), engaging all facilities worldwide. | Develop annual energy efficiency action plans, set targets and engage employees. | dot2 |
| Reduce water consumption in manufacturing by 5% every year in areas of water stress, until the site has reached optimal levels of efficiency. | Roll out the water best practice list and review the water stress strategy. | dot2 |
| Attain energy management certification for our operations around the world. | Attain global certification for energy management according to ISO 50001. | dot2 |
| Increase our proportion of renewable energy. | Continue to increase the use of renewable energy throughout our operations. | dot2 |
| Implement a Zero Landfill program at all manufacturing sites by 2020. | Ensure more factories embark on the Zero Landfill program and become zero landfill. | dot2 |
On track
Additional effort is required
Off track
Work has not yet begun
Electrolux
Electrolux shapes living for the better by reinventing taste, care and wellbeing experiences that make life more enjoyable and sustainable for millions of people. Through our brands, including Electrolux, AEG and Frigidaire, we sell more than 60 million household and professional products in more than 150 markets every year.
S:t Göransgatan 143
SE-105 45 Stockholm, Sweden