Better solutions
Lead in energy and resource efficient solutions
We are creating more efficient, high-performance appliances that help consumers to live better lives, save money and reduce their environmental footprint.
2021 Highlights
- In 2021, our resource efficient products accounted for 19% of our total units sold but 31% of gross profit.
- Scope 3 emissions as defined in our science-based target decreased by almost 20% compared to 2015.
- Expenditure in sustainability-related innovation accounted for 30% of our total R&D spend.
Our Goal
Lead in energy and resource efficient solutions
Electrolux will continuously improve the energy and water performance of our appliances, raising the bar for product efficiency around the world.
Roadmap to 2030
- Be a leader in product resource efficiency for key product categories and markets by 2030.
- Continue to develop products with good environmental performance, with a focus on energy and water efficiency.
- Continue to drive the market for efficient products by integrating sustainability into the Group's branded offerings.
The case for action
Tackling climate change by reducing carbon emissions is one of the greatest, most urgent challenges facing society. Energy efficient appliances can help to save energy and thus reduce carbon emissions.
According to UNESCO, 3.6 billion people currently live in areas that experience water scarcity at least one month a year, and predict this figure will increase to six billion by 2050.1) Water efficient appliances can contribute to save water.
Our approach
As product energy use is responsible for over 85% of our climate impact, product energy efficiency is where we can make our greatest contribution to tackling climate change. In terms of water use, our dishwashers can make a difference as they are more water efficient than washing dishes by hand.
As a manufacturer of water-efficient dishwashers and washing machines, we have a key role to play in helping people to use less water in their homes – as well as promoting water efficiency in our operations. Raising awareness of the benefits of modern and efficient appliances is key. For example, the average dishwasher is four times more water efficient than washing by hand per place setting according to research.2) Dishwashers also use around a third of the energy and save significant time for consumers.
Our new approach involves mapping the innovation evolution of our product platforms for the coming five years. We've introduced a mission scorecard with a number of strategic KPIs, which are also tied to environmental-related long-term incentives for our Top Management.
The new approach to product cycle planning also aims at ensuring our products meet the latest energy labelling regulations.
Product generation planning
Product efficiency KPIs are integrated into our product generation planning – supported by an analysis of the market position, energy efficiency improvements, regulatory landscape and energy labeling. Read more about new legislation.
We strive to be a market leader in product efficiency in all our key categories and markets. Our product efficiency objectives are also designed to contribute toward our climate targets.
Reporting tools
Product energy efficiency is where we can make our greatest contribution to tackling climate change. Part of our science-based target aims to reduce our absolute scope 3 emissions from the use of our sold products by 25% between 2015 and 2025. The scope 3 target covers two-thirds of all products sold by Electrolux and is calculated based on annual energy consumption (as defined by standard use models for each major market), sales volumes per category, IEA's ETP 2017 emission scenario factors per region, and estimated product lifetime. This methodology and the data quality are evolving and improving over time. We aim to include more product categories as this work continues. Read more about Our Climate Goals.
We also measure the proportion of annual sales volumes and gross profit from our most resource efficient products in main markets compared with our global offering. We have a methodology for the monitoring of energy and water performance. Every year, we raise the bar in terms of the criteria used to define our most energy and water efficient products based on: energy efficiency of the sold products, the standards for average usage and expected durability as well as the energy legislation, as defined regionally and nationally.
Product efficiency innovation
Product efficiency is embedded in the Group's R&D processes through defined targets. We are also exploring further energy efficiency opportunities related to digitalization and connectivity by developing smart appliances that can help consumers to use their appliances in the most sustainable way.
Challenges
- 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 increases while new efficiency savings are more difficult to achieve.
- Various energy efficiency standards around the world make it difficult to apply worldwide best practice.
- Global data management complexity.
1) UNESCO (2018). World Water Development Report 2018.
2) Which? (2020). Which? research reveals how little water dishwashers use compared to hand-washing.
The progress on our Goal
How we measure progress
- Be a leader in product efficiency for our key categories and markets by 2030.
- Progress on product-related contributions to the Electrolux science-based targets.
- Percentage of R&D budget spent on sustainability-related innovation.
Developing efficient products
Examples of new products in 2021 that enable consumers to live more sustainably in terms of energy and water management:
- Electrolux front-load washers in North America - save an average of over 450 liters (120 gallons) of water per year compared with a top-load washer.
- The PURE 4X water filter in Latin America - saves 3,000 liters of purified water from plastic bottles. In addition, it has a new slimmer shape that reduces the amount of plastic in the product by 27%, which in turn reduces packaging.
- The new Genesi refrigerator range - incorporates a variety of solutions to protect food quality for longer to reduce food waste while boosting energy efficiency. The range will start using recycled plastics in 2022.
- Microplastic filter – an Electrolux external filter that can be fitted to any washing machine to capture microplastics.
In Europe, the energy performance of products such as refrigerators, dishwashers and washing machines was upgraded in line with the new energy legislation during the year.
Contributing to our Climate Goals
Energy efficiency is a priority across all our key product categories and markets and is related to the Electrolux science-based target, as well as indicators to track progress.
Scope 3 emissions defined in our science-based target decreased by almost 20% compared to the emissions in 2015.
Our most resource efficient products make good business sense in terms of profitability for Electrolux as they accounted for 19% (26) of total units sold but 31% (36) of gross profit for consumer products in 2021.
19/31%
Our most energy and water efficient products accounted for 19% of total units sold but 31% of gross profit for consumer products in 2021.
Stakeholder engagement on product efficiency
Electrolux supports 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.
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.
Electrolux has submitted a plan to replace its high-impact greenhouse gases to the UN Cool Coalition initiative. Read more in our Goal Eliminate harmful materials.
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 2021, including the capitalization of SEK 578m (563), amounted to SEK 3,864m (3,799), which corresponds to 3.1% (3.3) of net sales.
Next steps
| Roadmap to 2030 | Next steps | Status |
|---|---|---|
| Be a leader in product efficiency for key categories and markets by 2030. | Continue to deliver more efficient products to meet new stringent energy efficiency standards in the EU and Brazil. | On track |
Continue to develop products with good environmental performance, with a focus on energy and water efficiency. | Continue to integrate environmental performance processes 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. | On track |
Continue to drive the market for efficient products by integrating sustainability into the Group's brands. | Use our global influence to inspire and educate consumers on sustainable living globally. | On track |
- On track
- Additional effort is required
- Off track
- Work has not yet begun