Electrolux in a changing world
Global megatrends that shape our business
The world in which we operate is constantly changing due to the influence of global megatrends, which create challenges for our business – as well as enormous opportunities. Our sustainability framework – For the Better 2030 – helps us manage these global megatrends, and ensures we contribute toward international sustainable development objectives such as the UN Sustainable Development Goals.
Global megatrends
Demographics
Global demographic trends – such as population growth, the growing middle class, an aging population and urbanization – are increasing the demand for home appliances, which puts more pressure on energy and natural resources. By 2035, another billion people are expected to buy their first refrigerator.
Implications for Electrolux
- Significant growth potential in emerging markets.
- Continued need to improve the environmental performance of products.
- Growing importance of older consumer groups and the increasing number of smaller households.
- Potential for new business models, e.g. shared ownership.
Resources & planetary boundaries
There is scientific evidence that humans are causing irreversible damage to the planet’s fragile systems, and that there is an urgent need to reduce greenhouse gas emissions and adapt to a changing climate. There is also a pressing need for businesses to work within planetary boundaries by developing "circular business" models that promote resource efficiency, cleaner chemistry and waste reduction.
Implications for Electrolux
- Continued need to improve the environmental performance of products.
- Pressure to reduce water consumption in areas with water scarcity.
- Competition for metals and minerals.
- Growing importance of circular solutions.
- Expectations to go beyond chemical legislation.
Technology & digitalization
New technologies are scaled rapidly and globally, with purchasing decisions increasingly influenced by online information and social media. The Internet of Things (IoT) enables new business models and functionality through connected appliances.
Implications for Electrolux
- Greater consumer empowerment and awareness requires transparency and sustainable business practices.
- Digitalization will drive the next wave of operational efficiency, including closer integration with suppliers.
- Connectivity offers opportunities for circular business models that result in better resource efficiency.
- IoT enables a lifelong relationship between producers and consumers but requires high standards of data security and privacy.