Electrolux 2008 Annual Report Download - page 45

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Thirdly, the Group communicates the benefits of efficient appli-
ances. Electrolux aims to expand the market for climate-smart
products by influencing consumer purchasing through marketing
and communications. With the right market conditions, the indus-
try can do more. Electrolux is, therefore, calling on decision-
makers to create financial incentives that increase demand of
efficient appliances.
Responsible sourcing
Upholding high workplace and environmental standards within
the Group’s supply chain is essential. More than 3,800 companies
supply Electrolux with products, components and services. Com-
pliance to the Electrolux Code of Conduct and Environmental
Policy is mandatory for all of these suppliers.
The goal of the Responsible Sourcing program is to build trans-
parent business relationships and improve labor and environmen-
tal conditions. Suppliers are monitored by Group sustainability
auditors based in Asia/Pacific, Eastern Europe and Latin America
as well as through external audits. The program applies a risk-
based approach, with a focus on those regions that pose particu-
lar challenges because of poor enforcement of existing national
labor and environmental protection laws.
The program is expanding, audit tools are evolving and work
conditions are improving amongst audited suppliers.
Restructuring
In order to maintain and enhance competitiveness, 60% of Group
plants will be located in low-cost countries by 2010.
How responsibly the company manages the restructuring pro-
cess that this involves, and its effects on communities and indi-
viduals, is linked to the Group’s reputation. Through transparency,
engagement and dialogue, Electrolux seeks a positive future for
those involved.
Transfer of operations and technologies to emerging econo-
mies generates social and economic benefits for local communi-
ties. It also positions Electrolux in markets of the future and helps
improve today’s operating margins.
DJSI World Index
Electrolux is the only manufacturer of major household appliances
listed in the prestigious Dow Jones Sustainability World Index.
This places the Group within the top 10% of the 2,500 companies
included in the Dow Jones Global Indexes with regard to long-term
economic, environmental and social performance.
Responsible sourcing: Follow-up audit comparisons
500
400
300
200
100
0
Number of non-conformances
Zero
tolerance
Minor non-
compliance
Major non-
compliance
Initial audits 2007–2008 Follow-up audit 2008
97
400
324
369
305
Follow-up audits were carried out
at 64 suppliers in China during
2008. Initial audits were completed
in 2007 and early 2008. The out-
come of the audits indicate insuffi-
cient improvements by suppliers.
In addition, follow-up audits
revealed additional findings. The
results will be further analyzed to
improve the efficiency of the pro-
gram.
2004
2005
2006
2007
2008
Dish-
washers
Refrigerators/
freezers
Washing
machines
100
80
60
40
20
0
%
Reduction in energy con-
sumption for products
sold in Europe, with
energy index set at 100%
in the year 2003.
Fleet average
41