Electrolux 2011 Annual Report Download - page 184

The Electrolux approach to reporting
With over 70% of the total environmental impact of appliances
occurring during use, improving product efficiency is the most rel-
evant issue from a life-cycle perspective. It is also where the com-
pany can make the greatest difference in lowering consumers’
environmental footprint.
Lowering environmental impact
During 2012 product targets for energy and water reductions
and chemical use in all major markets will be defined. Electrolux
has demonstrated progress on efficiency improvements over a
long period. For example, today’s energy class A++ refrigerator/
freezer consumes 66% less energy than an average appliance
from 1995; an improvement from 574kWh/year to 196kWh.
Challenges remain to implement further improvements in the
Group’s product fleet. These include raising the bar on product
efficiency, and continually phasing out hazardous materials.
As part of its 2015 goals, the Group will increase investment in
advanced technology by 20%. The R&D priorities are to innovate
products for energy efficiency and design for recycling.
The learnings from implementing the European RoHS and
REACH regulation have been used for updating the restricted
materials program across the Group. Electrolux revises its
Restricted Materials List every year, resulting in more stringent
requirements for suppliers.
Growing the market
Efficient products are crucial to continued business success.
Each year, Electrolux identifies new criteria for the most environ-
mentally sound appliances among all Group products. Each mar-
ket has a Green Range of energy and water efficient products
based on these criteria.
Group business units must report on yearly sales of these prod-
ucts as a proportion of the entire product range. In 2011, sales of
the green ranges accounted for 7% of sold units and 15% of gross
profit, confirming that products with outstanding environmental
performance generate higher profits.
The challenge of growing the market for the most efficient prod-
ucts is ongoing, and despite the economic downturn, there is
market promise. Energy efficiency and other environmental mes-
saging have played a larger role in marketing efforts.
In line with its business strategy, the Group also sees strong
potential for growth in emerging markets where a rising middle
class is placing increased strains on limited resources such as
water and energy.
Electrolux has a three-tiered approach to sustainability
reporting, including an extensive GRI report available
on-line.
Global Green Range
16
12
8
4
0
%
Share of units sold
Share of gross profit
Consumer products with the best
environmental performance
accounted for 7% of total sold
units and 15% of gross profit.
2. The Electrolux annual sustainability performance
review, Sustainability Matters, is built around the
GRI framework for sustainability reporting and is
included in the on-line Annual Report. It can be
accessed at www.electrolux.com/sustainability
1. Sustainability information is integrated throughout
this printed Annual Report. Targeted to shareholders
and other stakeholders, the focus is on how sustain-
ability issues relate to the business strategy, as well
as goals and performance. (See also p. 48, in the
Annual Report Strategy book).
3. Future InSight: Aimed at employees and business
contacts, this outlook report is designed to spark
debate and communicate how the Group intends to
realize its sustainability strategy through integration,
driving innovation and building partnerships. It can
be accessed at www.electrolux.com/sustainability
Products, services and markets
Core issues:
• Innovative, energy and water efficient products
• Hazardous materials
• Design for recycling and using recycled material
• Growing the market for more efficient products
• Designing products for the growing middle class in
emerging markets
101