Better company
Be climate neutral and drive clean and resource-efficient operations
We are reducing our footprint by running efficient operations all around the world.
2021 Highlights
- The carbon footprint of our operations decreased by 8% compared to 2020 despite increased production volumes.
- Water efficiency improved by 8% in water risk areas compared to 2020.
- 11 Electrolux plants were certified by the end of 2021 according to our Zero Waste to Landfill program.
Our Goal
Be climate neutral and drive clean and resource-efficient operations
Electrolux will continue to reduce its environmental footprint by shifting to renewables, and optimizing the use of energy and other resources throughout its operations. We aim to have climate neutral operations by 2030.
Roadmap to 2030
- Reduce our CO2 footprint by 85% by 2025 (2015 baseline) and achieve climate neutral operations by 2030.
- Improve energy efficiency at our manufacturing sites and warehouses by an additional 12.5% by 2025 (2020 baseline).
- Improve water efficiency at our manufacturing sites by 25% by 2025 (2020 baseline) in potential water risk areas, until the site has reached optimal levels of efficiency.
- Increase the proportion of renewable energy for our operations to 65% by 2025.
- Certify all plants to the Zero Waste to Landfill program by 2025.
The case for action
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, waste and emissions – is coordinated globally with a common process and strategy wherever in the world we operate. We have a comprehensive approach to reducing our climate footprint – including our own operations and the lifecycle impact of our products. This section looks at our own operations. Read more about Our Climate Goals for an overview of our roadmap to become climate neutral across the value chain.
Resource efficiency management
The Electrolux Green Spirit program is our internal resource efficiency program and rating system that includes criteria related to climate, energy and water performance, management, engagement and actions that are reviewed annually. The program is continuously improved to reduce our environmental impact and operational costs. It drives and promotes the sharing and implementation of best practice among our manufacturing sites globally.
In addition, our renewable energy target is tracked on a monthly basis and reviewed on a Group and regional level. We are raising our level of ambition with renewable energy sources, such as hydro, solar, wind, biomass and biofuel. We also learn from existing on-site renewable installations and explore new projects around the world.
Action plans include energy management, technological investments, employee awareness 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.
Our Zero Waste to Landfill program has the objective 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. To achieve this, we work to reduce the waste we generate, and identify opportunities for reusing waste materials. Standard indicators are measured quarterly and followed up by management. The common waste database includes data from all factories in a approach that follows the 2008 CEE Directive.
All manufacturing units with over 50 employees must be certified to the ISO 14001 environmental management system. In addition, we are working to implement the ISO 50001 energy management system at all our manufacturing sites.
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 our factories are divided into two groups – Water Risk and Water Management factories. The Green Spirt program shares water management best practice, monthly reporting on water performance indicators as well water mapping globally.
Challenges
- Following over a decade of prioritized investments with good payback periods, it is becoming increasingly challenging to realize continuous improvements in energy and water efficiency with acceptable payback periods.
- During the year, the coronavirus pandemic continued to be a challenge for our operations.
- Phasing out fossil fuels is a challenge in high temperature processes due to the lack of technical and economically viable alternatives.
The progress on our Goal
How we measure progress
- CO2 emissions reduction in our operations toward climate neutrality.
- Energy efficiency (energy used per unit produced).
- Water efficiency (water used per unit produced).
- Proportion of energy generated by renewable sources.
- Number of factories certified to the Zero Waste to Landfill program.
Electrolux is implementing a SEK 8bn re-engineering program, which involves modernizing, automating and optimizing its operations at several key facilities. This program is expected to realize annual cost savings of SEK 3.5bn by 2024, and at the same time it will reduce our total environmental footprint by reducing the energy, climate, water and waste impacts in our manufacturing.
Resource efficiency
In 2021, we improved our energy efficiency per unit produced by 1.1% compared with the previous year despite the coronavirus pandemic, and compared to 2005, we improved efficiency per unit produced by 43%. 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.
We are also implementing technology roadmaps, which will help us to move faster toward even more lean operations.
Operational resource efficiency
Driving resource efficiency
Our internal Green Sprit program, including our rating and certification system, continues to be crucial in driving resource efficiency. In 2021, 76% of our facilities achieved top ratings – either Gold or Platinum.
In 2021, we started to implement Green Spirit 2.0. The updated program draws on best practices and criteria to support our journey toward climate neutral operations through digitalization, process excellence and electrification.
Energy
Energy efficiency
In 2021, we reduced the energy consumed at our manufacturing sites per product by around 43% compared with 2005. We made good progress on decreasing the environmental footprint of our operations, reducing our emissions from energy use in manufacturing, warehouses and offices by more than 74% since 2015 and by 8% compared with 2020. Over this period, the Group's revenue has increased, which illustrates that Electrolux has decoupled revenue growth from CO2 emissions.
During the year, we implemented studies to phase out the use of fossil fuels in our manufacturing processes, including space heating, and developed a roadmap to switch from fossil fuel to renewable fuels or electrification in our processes.
Energy management systems
We are working to implement the ISO 50001 energy management system at all our manufacturing sites by 2022 (excluding recently acquired/launched plants). At the end of 2021, 78% of our factories were ISO 50001 certified.
Renewable energy
The shift to renewable energy, together with energy efficiency, has contributed toward an absolute reduction of our CO2 emissions in operations by more than 74% since 2015.
In 2021, 56% of our total energy purchased was from renewable sources. 34 of our manufacturing sites and several offices in Europe, North America, Latin America and APAC procure 100% of their electricity from renewable energy sources.
We increased our renewable energy capacity through solar photovoltaic systems. Electrolux has its own solar photovoltaic systems at sites in Italy, Thailand, Australia, Mexico, China, South Africa and Sweden. We are also looking into the potential for solar power purchase agreements (PPAs) both on and off Electrolux sites. Our ambition is to have the first PPA up and running in 2023.
Climate and water
Energy efficiency and the shift toward renewable energy drives our efforts to reduce the climate impact of our operations.
In 2021, we were recognized for our sustainability leadership with a prestigious “double A” score for climate and water and as a Supplier Engagement Leader by the global non-profit CDP. Electrolux was one of a few companies to receive top marks for its efforts to tackle climate change, protect water security and engage with suppliers. We have been on the CDP Climate A list for the past six years and on the Water A list since 2020.
During the year, we improved our overall water efficiency by more than 43% compared with 2015. We made particularly good progress on water efficiency with factories in water scarce regions.
Many of our plants recycle process water and some are already closed loop in terms of reusing process water. We are currently investigating opportunities in several other facilities. We also use harvested rainwater in some manufacturing processes in Thailand, Brazil and Australia.
Waste
Zero Waste to Landfill program
Our global Electrolux Zero Waste to Landfill program has been implemented at all our manufacturing sites around the world.
During 2021, our factories at Manaus and Curitiba in Brazil, Adelaide in Australia, Rosario in Argentina, Olawa and Zabrze in Poland, and Susegana in Italy achieved the Zero Waste to Landfill certification issued by a third party. Together with our factories in Sao Carlos in Brazil, Solaro and Porcia in Italy and Cairo in Egypt that were certified in recent years, 11 Electrolux plants were certified by the end of 2021. Our objective is to certify all our manufacturing sites around the world by 2025.
By implementing the Electrolux Zero Waste to Landfill program at each of our factories, we are gradually reducing the amount of waste we send to landfill. In 2021, our improved waste management ensured that 97.3% of the total waste produced at our manufacturing sites was either reused or recovered.
e-waste
A global Master Services Agreement was signed in 2021 between Electrolux IT Solutions AB and a recycling partner for the collection of our unwanted IT equipment globally until 2025. The agreement will ensure that the IT equipment that we no longer need will be reused, repaired or properly recycled to avoid it becoming e-waste, reducing the negative environmental impact and promoting circularity in the coming years.
Total Scope 11) and Scope 2 CO2 gas emissions by weight. (metric tons)
1) Scope 1 and 2 emissions, including contributions from energy use and greenhouse gas fugitive emissions.
Greenhouse gas (GHG) emissions1) intensity
1) Scope 1 and 2 emissions, including contributions from energy use and greenhouse gas fugitive emissions.
Next steps
| Roadmap to 2030 | Next steps | Status |
|---|---|---|
Reduce our CO2 footprint by 85% by 2025 (2015 baseline) and achieve climate neutral operations by 2030. | Continue the inventory of our fossil fuel footprint in our operations. Develop a global roadmap based on fossil free equipment and processes. | |
Improve energy efficiency at our manufacturing sites and warehouses by an additional 12.5% by 2025 (2020 baseline). | Continue with the Green Spirit 2.0 certification and the energy management certification scheme. | |
Improve water efficiency at our manufacturing sites by 25% by 2025 (2020 baseline) in potential water risk areas, until the site has reached optimal levels of efficiency. | Implement the roadmap based on the WWF water risk assessment for our manufacturing footprint. | |
Increase the proportion of renewable energy for our operations to 65% by 2025. | Continue to source electricity from certified renewable sources. Continue to pilot bio fuels and the electrification of processes. | |
Zero Waste to Landfill third-party certification for all plants by 2025. | Continue the certification process. |
- On track
- Additional effort is required
- Off track
- Work has not yet begun