Sustainability Report 2020

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Sustainability In Brief

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Our sustainability achievements 2015-2020

Following the completion of our ‘For the Better 2020’ sustainability framework at the end of 2020, this page summarizes the key achievements we have made since 2015.

The ‘For the Better 2020’ sustainability framework included nine Promises and a Climate target. The key achievements for each of our Promises are listed in the tables below. For our progress in 2020, read the Key priorities and progress 2020 section, which covers our latest ‘For the Better 2030’ sustainability framework.

Constantly improve product performance and efficiency

Roadmap 2015 to 2020 What we achieved 
Continue to develop products with good environmental performance, with focus on energy and water efficiency. 

These are examples of energy efficient products launched.

  • Line 6000 professional tumble dryer, which achieves over 60% energy savings compared with normal driers while providing the shortest drying times on the market.
  • SoftWater Technology, available in our  the AEG 9000 Series washing machines, prevents fading and keeps fabrics soft and in-shape while reducing the environmental impact of laundry.

Electrolux is a member of U4E, a public-private partnership led by the United Nations Environment Program to promote high-efficiency appliances and equipment.

Make better use of resources

Roadmap 2015 to 2020 What we achieved 
Increase the volume of recycled plastic to 20,000 metric tons annually. 

We have made progress on incorporating recycled plastic into our products since 2015 and used 6,800 metric tons in 2020. Despite not meeting our 20,000 metric ton target, we have raised our future ambition since we see large potential to increase the use of recycled plastic in the coming years.

Increase the amount of scrap-based steel in our production. 

We increased the amount of recycled steel we used in our products between 2015 to 2017. However, volumes decreased since then as the policy landscape in the US the conditions for scrap based steel became unfavorable.

Since we began measuring CO2 savings due to our use of recycled steel, we have avoided around 1.6 million metric tons CO2 in total.

Identify and evaluate relevant circular business models that can be scaled up. We have identified, evaluated and developed circular business models, with the aim of scaling up the most successful. These include fixed-price repair services in Europe, new product leasing concepts for municipal housing companies in Sweden and holiday homes in Denmark, and a subscription-based business model for our award-winning Pure i9 robotic vacuum. 

Eliminate harmful materials

Roadmap 2015 to 2020 What we achieved 
Raise the bar on chemical requirements, taking into account new scientific findings. Raising our chemical standards has been an ongoing process between 2015 and 2020, and continues to be an important part of our chemical management process. During the period, the RoHS directive (Restriction of Hazardous Substances) was rolled out globally, and substances such as BPA (bisphenol A) in food contact applications have been banned from Electrolux products. 
Eliminate high-impact greenhouse gases from our products. 

Our progress on phasing out high-impact greenhouse gases has been tracked through our 50% CO2 reduction target. We have made significant progress but eliminating such gases is not currently technically possible.

Following several years of advocacy in the US, spearheaded by Electrolux and the North American industry organization AHAM, the US safety standards were revised in 2018 to allow producers of consumer refrigerators and freezers to transition away from Hydrofluorocarbons (HFCs) to more eco-friendly hydrocarbon refrigerants. This has enabled the development of new energy efficient products in our ‘cold products’ category that are part of new automated production processes. 

UN Cool Coalition initiative – Electrolux will replace all high-impact greenhouse gases in all appliances with more sustainable alternatives by 2023 at the latest.

Achieve more with less

Roadmap 2015 to 2020 What we achieved 

Improve the energy efficiency of manufacturing sites by 20% by 2020 (baseline 2015), engaging all facilities world wide.

Electrolux improved its energy efficiency per product by 11.5% compared to 2015. The energy management program has contributed to over SEK 700m annually in reduced energy costs. The program includes the monthly follow up on actions, fulfilment of targets and sharing best practice. In addition, all plants are certified according to our energy, water and climate scheme with grades from bronze to platinum. In 2020, 75% of our plants reached Gold or Platinum level.

Reduce water consumption in manufacturing by 5% every year in areas of water stress, until the site has reached optimal levels of efficiency.

Between 2015 and 2020, we reduced water consumption by 25% in our plants in water-stressed areas.   We used the WWF Water Risk Filter to help identify which of our plants were located in water-scarce areas and formulated targets for those plants. Processes were established to share water management best practices, report monthly on water performance indicators and conduct water mapping. We have also established closed loop systems at our plants to recycle process water, and harvest rainwater.

Attain energy management certification for our operations around the world. Around 60% of plants were certified as of the end of 2020. The certification process was delayed by the coronavirus pandemic in 2020. 
Increase our proportion of renewable energy. We exceeded our target to source 50% of our renewable energy for our operations and sourced 53% by the end of 2020. At the end of the period, Electrolux generated on-site renewable energy at 11 plants around the world, and purchased 88% of its electricity from renewable sources. 
Implement a Zero Landfill program at all manufacturing sites by 2020. The global Electrolux Zero Waste to Landfill program was developed and implemented at all Electrolux factories. The program proactively works to reduce the environmental footprint of each site by finding 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. 

Ensure the best health and safety

Roadmap 2015 to 2020 What we achieved 
Attain safety certification for our operations around the world. Work with implementing and certifing our factories to the ISO 45001 standard is ongoing. In some regions implementation planning has been performed, in others factories are already certified.
Integrate the Group’s safety program into new acquisitions within three years of purchase. 

Integration of the safety program is an ongoing process. Since 2015, three new manufacturing sites have been acquired and the safety program has been successfully integrated.

Always act ethically and respect human rights

Roadmap 2015 to 2020 What we achieved 

Develop and implement a cohesive, Group-wide approach to human rights.

We developed and implemented a Group-wide assessment to identify and assess human rights risks. Based on this assessment, an action plan methodology was developed for local human rights impact assessments. Four such assessments had been conducted by the end of 2020 – in Egypt, Thailand, Ukraine and Romania.

Read more in understanding and managing human rights.

Provide guidance to employees on how to do the right thing by promoting the Code of Conduct. 

The Electrolux Code of Conduct was created and launched to crystallize our key ethical principles. This process also required the company to identify key areas in its business, enshrining them in 15 mandatory Group Policies.

All employees are required to sign-off on the Code of Conduct periodically and take an e-learning on the Code. In addition, mandatory trainings for all employees have been rolled out for the Anti-corruption policy, Anti-trust policy and our Workplace policy. Online training modules have been complemented by webinars and face-to-face training on various Code of Conduct related topics.

Be responsive and respectful when dealing with issues of concern, building trust in our Ethics Program among employees. 

Electrolux launched a Group Directive and developed training for employees appointed to handle complaints raised through the Electrolux Ethics Helpline or other channels. Information campaigns for employees have been conducted to build trust in the helpline and our Code of Conduct. The helpline was launched in additional countries, such as France, Belgium, Luxemburg and Austria.

The latest Employee Engagement Survey (EES) showed increased trust in the ethics helpline - from 76% in 2018 to 77% in 2019. 

Continue to develop an effective global Anti-Corruption compliance program. 

Significant elements in the Anti-corruption program were enhanced, including more specific requirements on sponsorships, donations, gifts, meals and events. Regular face-to- face trainings continued for select employees. In addition, engagement and oversight by senior management has been formalized by the creation of global committees that meet regularly throughout the year.

Solutions for healthy and sustainable living for more people

Roadmap 2015 to 2020 What we achieved 
Engaging in United for Efficiency (U4E), a UNEP-led project to advice governments on areas such as energy labeling, incentive programs and the disposal of refrigerators. Electrolux plays an active role in United for Efficiency (U4E), led by the United Nations Environment Program to develop recommendations on how emerging markets can leapfrog to greater energy efficiency. The program aims to advise governments on areas such as energy labeling, incentive programs, and the end-of-life treatment of redundant appliances. 

Be a force for good

Roadmap 2015 to 2020 What we achieved 
Together with our global and local partners, explore possible project models, replicate and scale up, with the aim of maximizing societal impact.  

We identified successful project models, which we began replicating, scaling up and developing.

The Food Foundation and the Feed the Planet partnership support projects that do one or more of the following:
- Education on sustainable cooking and eating habits.
- Professional culinary training for the unemployed.
- Sustainability education in the culinary field.
- Support people in need. 

Key highlights between 2015 and 2020 were:

- 117 million in viewership.

- Over 40,000 kids, consumers and professionals engaged and inspired in sustainable eating habits.

- 1,808 people in the culinary field trained in sustainability.

- The equivalent of 1.4 million meals provided to people in need.

Improve sustainability in the supply chain

Roadmap 2015 to 2020 What we achieved 
Screen prospective suppliers to ensure they can live up to the Group’s expectations. 

We have developed a supplier screening methodology to promote and drive sustainability performance. The tool was fully integrated into our processes and new Purchasing organization in 2020. 

Increase awareness and capabilities among our prospective and existing suppliers through training and dialogue. 

We have continued to develop and deploy digital learning tools to reach more people working within our supply base. From 2020, suppliers have been trained through our second- generation e-learning. In 2020, we developed digital versions of our tools to assess and develop our suppliers during the coronavirus pandemic.

The QuizRR digital learning platform has been used to train over 13,000 workers at our suppliers in China and Thailand.  

We started to investigate the use of conflict minerals in our supply chain in 2017. We publish a report on this issue annually.

Drive the improvement of supplier environmental footprints. 

We have continuously developed our analysis of the environmental performance of our suppliers since 2015. This has involved implementing energy management self-assessment tools for our main suppliers. The tools are used by 25% of our OEM suppliers to set energy improvement targets. We also began requesting our top direct material suppliers to report their emissions to CDP. 

Annual workshops have been held with suppliers to share best practice, reward good performance and promote their willingness to improve. 
Sustainability parameters have been introduced to supplier performance reviews.

Leverage our influence over logistics companies to improve the CO2 efficiency of transportation by 15% by 2020. 

Between 2015 and 2020 absolute CO2 emissions reduced by 17% from land and sea transport and CO2 efficiency were improved by 11% and 23% respectively.

We implemented a scorecard to assess our logistics suppliers in Brazil, North America and Europe to ensure the most sustainable alternatives.  

Collaborating with logistics suppliers included pilot projects to test biofuels and electric trucks. Electrolux started working with other shippers to better align purchasing and logistics.

We have been very active in the BSR Clean Cargo initiative, which aims to improve the environmental performance of marine container transport.  

Our 2020 Climate Target

Roadmap 2015 to 2020 What we achieved 
Halve our 2005 CO2 emissions by 2020.  

Overall, we reduced our CO2 emissions by 39% between 2005 and 2020.  

Product use 
Between 2005 and 2020, we have focused on product efficiency in our main categories as the use phase of our products is our largest source of lifecycle emissions. Although our ambitious targets were not met, we have continuously improved the efficiency of our products every year, despite it being increasingly difficult to achieve improvements due to technological limitations.  

High impact greenhouse gases 
Significant progress has been made in phasing out high-impact greenhouse gases from our air conditioners, yet completely eliminating such gases is not currently technically possible. Despite delays in our re-engineering investments in the US, they will enable us to totally replace HFCs from our refrigerator category when complete.  

Manufacturing 
Although accounting for a small portion of our total lifecycle emissions, Electrolux has reduced the energy use per product by 45% since 2005.  

Transport 
Logistics account for a small proportion of the overall lifecycle emissions. Electrolux has reduced approximately 100,000 tons CO2 compared to the estimated 2005 baseline. In the last five years CO2 efficiency improved by 23% in sea transportation and by more than 11% in land transportation.

Electrolux

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.

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