Electrolux 2004 Annual Report Download - page 100

96 Electrolux Annual Report 2004
Environmental performance is a central element of the Group’s
overall business strategy. It impacts all phases of Group operations,
from product development and manufacturing to marketing and
consumer communication.
Electrolux has a long history of continuously improving environ-
mental performance of products, e.g., by reducing water and
energy consumption, and by designing products with due consid-
eration for efficient recycling. Because improved environmental per-
formance also means lower lifetime operating costs for consumers,
it plays a key role in marketing and product development, and is a
source of competitive advantage.
A proactive approach to environmental challenges reduces risk,
enhances positive brand awareness, strengthens employee satis-
faction and ensures good relations with local communities in which
the Group operates.
Strategy and policy
The Electrolux environmental strategy is based on a lifecycle
approach. The Group recognizes three basic drivers for its strategy
of developing and marketing products with outstanding environ-
mental performance: regulations, consumer demand and resource
efficiency.
• The most important trends in legislation and regulation involve
energy efficiency, recycling and restrictions on the use of poten-
tially hazardous substances. See table below.
• Consumers are increasingly aware of the direct relationship
between higher efficiency and lower lifecycle costs.
• The continuous pursuit of cost savings leads to more efficient use
of material and energy resources in manufacturing.
Environmental impact and risk
during manufacturing
Environmental regulations for manufacturing facilities vary between
countries and regions, and so do their application by authorities.
Group units comply with local regulations, and exercise caution in
light of the long-term nature of operations.
In connection with acquisitions of companies and plants, an
assessment is made of potential environmental risks and the invest-
ment that might be required to modify production. When necessary,
an analysis based on standardized routines is performed to deter-
mine possible contamination of soil and ground water. The assess-
ment is integrated in the acquisition process. This process is regu-
lated by law in many regions, particularly in North America.
The Group works continuously to reduce consumption of energy
and water at production sites, and to achieve high use-rates for
purchased material and components, see Manufacturing perform-
ance indicators on page 97.
Electrolux shows above-average environmental performance in
comparison with the durable goods manufacturing industry as a
whole. This has been confirmed by investigations conducted for the
Dow Jones Sustainability Index, FTSE4Good, Oekom Research
and several other business-analysis organizations.
Environmental Activities
The Electrolux Environmental Policy
We want our products, services and production to be part of a
sustainable society.
We are committed to:
• Designing products to reduce their adverse environmental
impact in production, use and disposal.
• Reducing resource consumption, waste and pollution in our
operations.
• Taking a proactive approach regarding environmental legis-
lation that affects our business.
• Encouraging suppliers, subcontractors, retailers and recy-
clers of our products to adopt the same environmental
principles as Electrolux.
• Giving appropriate weight to this environmental policy when
making future planning and investment decisions.
• Setting targets and objectives, within the scope of the
environmental management system, to achieve continual
improvement and a sustainable development.
This environmental policy has been formally adopted by
Electrolux Group Management.
For more information, see www.electrolux.com/environment
Summary of environmental issues for which regulations affect the Group’s business areas
Affected products
Issues Regulations and operations
Energy efficiency Mandatory energy consumption criteria for Consumer Durables
certain products in EU, US, other markets, voluntary Professional Products
industry commitments on some products in EU
Energy labeling Mandatory labeling in EU, North America, Mexico, Japan, Consumer Durables
Australia, China, voluntary labeling in Hong Kong, Brazil Professional Products
Producer responsibility WEEE Directive in EU, state/provincial legislation in North America All electrical products
sold in EU, products
sold on certain markets
in North America
Eco-design requirements EuP Directive in EU, eco-design requirements in product development All products
Emissions from combustion engines EU and US. Canada to introduce US harmonized regulation in 2005 Outdoor Products
Air and waterborne emissions, solid waste EU, US, other markets All plants
Greenhouse effect Kyoto Protocol, national implementation Consumer Durables
Ozone depletion Montreal Protocol, national implementation Refrigerators, freezers,
air conditioners
Hazardous substances RoHS Directive in EU, and similar legislation in China. REACH All products and plants
in EU, state/provincial legislation in North America