As a leader in home appliance manufacturing, Electrolux is not only advancing in its sector but also pioneering sustainable supply chain practices, setting ambitious climate targets, and working closely with suppliers to foster a greener future.
Sustainability at the Forefront
Electrolux, the renowned Swedish home appliance manufacturer, is making waves with its unwavering commitment to sustainability. The company’s efforts are evident in its recent approval of a second science-based climate target by the Science-Based Targets initiative, a milestone achieved well ahead of its schedule.
Collaborative Efforts for a Greener Future
Understanding that suppliers are integral to its operations, Electrolux’s 2023 Sustainability Report emphasizes the importance of its partners’ role in environmental impact reduction. This collaborative approach is seen as a catalyst for broader global supply chain advancements.
Embolden Climate Goals
Elena Breda, Electrolux Group’s Chief Technology and Sustainability Officer, highlights the company’s sharp focus on climate action. The new target, in line with the Paris Agreement, aims for an 85% reduction in operational emissions and a 42% decrease in product-sold emissions by 2030.
Logistics: A Critical Consideration
With logistics being a significant contributor to greenhouse gas emissions, Electrolux is honing in on this area. The transportation of goods alone accounts for around 270,000 metric tons of CO2 annually, surpassing the emissions from manufacturing.
Enhancing Supplier Sustainability
Through its Responsible Sourcing Programme, Electrolux is actively engaging with suppliers to elevate their sustainability performance. A global responsible sourcing scoring model influences sourcing decisions, incentivizing suppliers with strong sustainability practices and aiding those that need improvement.
Focus on Critical Suppliers
In 2023, Electrolux prioritized nearly 750 critical suppliers, defined by elevated operational risks, for its Responsible Sourcing Programme. These suppliers are often situated in high-risk areas or engage in processes prone to environmental or social issues.
Integrating Social Sustainability
Electrolux is also making strides in incorporating social sustainability into supplier evaluations, promoting cross-value chain collaboration. This is part of the company’s broader strategy, For The Better 2030, which aims to minimize carbon footprint, optimize resource efficiency, and enhance procurement performance.
Electrolux’s dedication to sustainable supply chain practices is evident through its collaborative efforts, ambitious climate goals, and focus on critical suppliers. By integrating social sustainability into its operations and engaging with suppliers through responsible sourcing practices, Electrolux is leading the way towards a greener future.
