Electrolux 2005 Annual Report Download - page 111
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Please find page 111 of the 2005 Electrolux annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Electrolux Annual Report 2005 107
Energy directives and product labeling
Energy-efficiency and product labeling are core issues for the Group,
and for the appliance industry as a whole. In the Group’s major
markets, Europe and North America, regulations require that every
product bear a label indicating the product’s energy consumption.
Environmental impact and electricity costs are thus displayed to the
consumer and become factors in purchasing decisions. Similar
labeling regulations exist in Australia, Brazil, China, India, Japan and
Mexico.
The Group’s products are within all regulatory limits and are represented
in the highest energy-effi ciency classes as defi ned by the EU’s Energy+
scheme from 2004 and the US Environmental Protection Agency’s
Energy Star program. Electrolux anticipates that it will qualify for
recently-enacted US energy tax credits as a result of the sale of Energy
Star appliances. The credits are available for US production of such
appliances in 2006 and 2007. In addition, Electrolux and other major
manufacturers in Europe are committed to voluntary agreements on
improving energy-efficiency for large household appliances. The
European Commission has endorsed these voluntary agreements.
Environmental regulations affecting the Group’s operations
Issue Regulation Product/operation
Energy efficiency Mandatory energy consumption criteria for specific products in EU, US, Consumer Durables
other markets. Voluntary industry commitments on some products in EU Professional Products
Energy labeling Mandatory labeling in EU, North America, Mexico, Japan, Australia, Consumer Durables
and China. Voluntary labeling in Hong Kong and Brazil Professional Products
Producer responsibility WEEE Directive in EU All electrical products
sold in EU
Eco-design requirements Energy using Products (EuP) Directive in EU, All products
eco-design requirements in product development
Emissions from combustion engines EU, US and Canada Outdoor Products
Air and waterborne emissions, solid waste Several markets including EU, and US All plants
Climate change 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, state/provincial All products and plants
legislation in North America and Australia
A list of environmental legislation affecting the Group’s global operations is available at www.electrolux.com/sustainability/legislation
Social Responsibility
The Group strives to be an attractive employer, fulfilling its responsi-
bility for providing safe and healthy workplaces and guaranteeing fair
treatment for all employees. Furthermore, the Group endeavors to
improve quality of life through its products, and assure that products
are safe to use and manufacture.
The Group has established policies and guidelines as well as
management procedures aimed at guaranteeing fair business prac-
tices and consistent monitoring of social performance.
The Electrolux Workplace Code of Conduct defines high employ-
ment standards for all Electrolux employees in all countries and
business sectors as well as for all subcontractors. The Code
incorporates issues such as child and forced labor, health and
safety, workers rights and environmental compliance.
Management guidelines
Practical guidelines have been developed regarding Code-related
procedures and documentation that are required of Electrolux busi-
ness units. These guidelines are intended to help integrate the Code
of Conduct into the daily operations of all entities.
Internal communication and monitoring
The Group has developed an electronic assessment tool called ALFA
(Awareness–Learning–Feedback–Assessment) in order to support
internal implementation of the Workplace Code of Conduct and to
continuously monitor Electrolux units regarding compliance.
In 2005, ALFA was deployed in all Electrolux business sectors for
the third time to measure how units have progressed in their work
with the Code. In total, 166 units have been evaluated and rated. The
results have been communicated to the units involved in order to
assist them in identifying areas where performance is good as well as
those where it needs to be improved.
ALFA Group-wide evaluation
Unit Sent to Responses Response rate
Production units 85 85 100%
Offices/warehouses 102 81 79%
Total 187 166 89%
Facilities excluded: Olara and Zarow in Poland; Capetown, South Africa; Fuenmayor,
Spain; Ödeshög, Sweden; and Rayong, Thailand.
Training
The Group has developed training material based on the principles of
the Code in order to meet the training needs of local operations.
External third-party monitoring
The process of reviewing internal Code of Conduct performance
continued in 2005. All production units in Asia and Latin America
have been audited on-site by third party auditors and corrective
actions have been taken. Audits have helped some units improve
routines in certain areas such as health, safety and working hours.
Electrolux People Process
The Electrolux People Process provides support at Group level for
managers with regard to recruitment and development of employees.
It also aims to ensure that individuals are treated fairly by the com-
pany. A 2005 talent management survey covered 1,300 employees in
senior positions worldwide. Four out of five respondents stated that
the Electrolux approach to personnel management has contributed
positively to the Group’s bottom line.
Social Responsibility