product performance and efficiency
We are creating ever more efficient, high-performance appliances, which help consumers to live better lives, save money and reduce their environmental footprint.
Electrolux will improve the energy and water performance of our appliances, raising the bar for product efficiency around the world.
Read more about our progress on this Promise
Roadmap 2015 to 2020
- Be a leader in product efficiency in our most important markets by 2020.
- Continue to develop products with good environmental performance, with a focus on energy efficiency.
- Continue to drive the market for efficient products through awareness-rising consumer campaigns.
The case for action
Tackling climate change by reducing greenhouse gases is one of the greatest, most urgent challenges facing society. At the same time, demand for water is set to increase by as much as 40% by 2030, meaning that a billion more people will live in places where water can no longer be taken for granted.
Efficient appliances can help with these issues, by saving energy and water throughout their lifespan. Product energy use is responsible for over 80% of our climate impact, so product energy efficiency is where we can make our greatest contribution to tackling climate change. In terms of water use, dishwashers for example, are more water efficient than washing dishes by hand.
Product generation planning
Product efficiency targets and KPIs are integrated into our product generation planning – supported by an analysis of the regulatory landscape, energy labeling, market position and energy-efficiency improvements. We strive to be a market leader in product efficiency in all our main markets, and we set our product performance targets accordingly. Our individual product efficiency targets are also designed to contribute toward our climate targets.
In our reporting, we measure the proportion of sales volumes and gross profit from our most resource efficient products in main markets compared with our global offering. Our most resource efficient products include washing machines that meet the European A+++ energy rating. We have a clear follow-up methodology for energy and water performance that allows us to track progress against our goals.
Product efficiency innovation
This promise is embedded in the Group's R&D processes through defined targets and KPIs for each major product category where efficiency standards exist. We are also exploring efficiency opportunities related to digitalization and connectivity by developing smart appliances to measure consumer behavior or connect to a smart grid to optimize energy use.
- Raising consumer awareness of the benefits of using more efficient products - particularly in markets without energy labels.
- With already high product efficiency in Europe, the cost of further product improvements is increasing as the potential new efficiency savings reduce.
- Various energy efficiency standards around the world make it difficult to apply worldwide best practice.
The progress on our promise
How we measure progress
- Fleet average (the energy efficiency of Electrolux products available) in key markets.
- Progress on product-related contributions to the Climate Target for 2020.
- Percentage of R&D budget spent on sustainability-related innovation.
Our efficient products
During the year, we continued our work to gather product data, which forms the basis for our work with promoting efficient products. This data enables Electrolux to demonstrate the value of more efficient products – both from an environmental and financial perspective.
Every year we raise the bar in terms of the criteria used to define our most energy and water efficient products. Our most resource efficient products also make good business sense in terms of profitability for Electrolux as they accounted for 23% (21) of total units sold and 32% (29) of gross profit for consumer products.
New efficient products
Our new efficient products launched in 2019 included washing machines with UltraCare, which allows clothes to be washed at lower temperatures, and the QuickSelect dishwasher user interface, which makes it easy for consumers to optimize the use of Electrolux dishwashers.
During 2019, we worked with product cycle planning to ensure our products meet forthcoming European energy labelling regulations from 2019/20. This involves upgrading the energy performance of products such as refrigerators, dishwashers and washing machines.
Stakeholder engagement on product efficiency
In 2019, Electrolux joined the UN 'Business Ambition for 1.5°C pledge, which is a global movement of business leaders working toward zero emissions by 2050, in line with the Paris Agreement. Electrolux is making an important contribution through its ongoing investment programs for cooling appliances – to reduce the climate impact of its factories and products.
We work to mitigate the challenge of different energy efficiency standards around the world by cooperating with various organizations. We continue to work with United4Efficiency (U4E), which is led by the United Nations Environment Program to develop recommendations on how emerging markets can leapfrog to greater energy efficiency.
Efficiency requirements and fleet average
The profitability and choice of products going to market is determined at the local level, based on energy efficiency requirements and consumer demand. Of our key markets, Europe, the U.S., Brazil and some Asia-Pacific countries currently have efficiency requirements in place, with varying levels of ambition.
In Europe, which represents 38% of total Group sales, energy efficiency has improved by an average of 2% per year since 2015 (see the graph EU Fleet Average below), and Electrolux is well established in the European efficiency market. For example, we are a clear leader in the fabric care category.
EU Fleet Average 2015-2019
In Europe, Electrolux continuously improved its energy efficiency across three product categories in 2019. The energy index is set at 100% for 2015.
Our most energy and water efficient products accounted for 23% of total units sold but 32% of gross profit for consumer products in 2019.
Contributing to our climate targets
Energy efficiency is a priority across all our product categories, and each major category has 2020 targets in place for its markets, as well as indicators to track progress.
R&D spent on sustainability-related innovation
Our global approach to product design and modularization is crucial for stepping up the level of ambition across product categories. Our expenditure on research and development in 2019, including the capitalization of SEK 788m (412), amounted to SEK 3,899m (3,566), which corresponds to 3.3% (3.1) of net sales.
|Roadmap 2015 to 2020||Next steps||Status|
|Be a leader in product efficiency in our most important markets by 2020.|
Preparing for energy labeling and raised energy-efficiency standards in the EU and for refrigeration in Australia.
|Continue to develop products with good environmental performance, with focus on energy efficiency.|
Further integration into product R&D. Continue to spend one-third of our R&D budget on sustainable product innovation, in terms of water and energy efficiency.
The next steps towards 2030 will be announced in the 2020 report.
Additional effort is required
Work has not yet begun
Electrolux is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent taste, care and wellbeing experiences for millions of people around the world, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our brands, including Electrolux, AEG and Frigidaire, we sell approximately 60 million household products in approximately 120 markets every year. In 2019 Electrolux had sales of SEK 119 billion and employed 49,000 people around the world.
S:t Göransgatan 143
SE-105 45 Stockholm, Sweden