Electrolux 2014 Annual Report Download - page 95

Other facts
Asbestos litigation in the US
Litigation and claims related to asbestos are pending against
the Group in the US. Almost all of the cases refer to exter-
nally supplied components used in industrial products manu-
factured by discontinued operations prior to the early s.
The cases involve plaintiffs who have made substantially
identical allegations against other defendants who are not
part of the Electrolux Group.
As of December , , the Group had a total of ,
(,) cases pending, representing approximately ,
(approximately ,) plaintiffs. During , , new cases
with , plaintiffs were filed and , pending cases with
approximately , plaintiffs were resolved.
The Group continues to operate under a  agreement
with certain insurance carriers who have agreed to reimburse
the Group for a portion of its costs relating to certain asbes-
tos lawsuits. The agreement is subject to termination upon 
days notice and if terminated, the parties would be restored
to their rights and obligations under the affected insurance
policies.
It is expected that additional lawsuits will be filed against
Electrolux. It is not possible to predict the number of future
lawsuits.
In addition, the outcome of asbestos lawsuits is difficult to
predict and Electrolux cannot provide any assurances that the
resolution of these types of lawsuits will not have a material
adverse effect on its business or on results of operations in
the future.
For information on certain additional legal proceedings, see Note  Contingent
liabilities.
Environmental activities
At the end of , Electrolux operated  manufacturing
facilities in  countries. Manufacturing comprises mainly
assembly of components made by suppliers. Other processes
include metalworking, molding of plastics, painting and
enameling.
Chemicals such as lubricants and cleaning fluids are used
as process aids. Chemicals used in Group products include
insulation materials, paint and enamel. Production processes
generate an environmental impact through the use of energy
and water, as well as water- and air-borne emissions, waste
and noise.
Studies of the total environmental impact of the Group’s
products during their entire lifetime, i.e., from production and
use to recycling, indicate that the greatest environmental
impact is generated when the products are used. Electrolux
aims to develop and actively promote increased sales of
products with lower environmental impact.
Mandatory permits and notification in Sweden
and elsewhere
Electrolux operates three plants in Sweden, which account for
approximately .% of the total value of the Group’s pro-
duction. Permits are required by authorities for two of these
plants and are also required to submit notification. The permits
cover such areas as thresholds or maximum permissible val-
ues for air- and- water-borne emissions and noise. No signifi-
cant non-compliance with Swedish environmental legislation
was reported in .
Manufacturing units in other countries adjust their opera-
tions, apply for necessary permits and report to the authori-
ties in accordance with local legislation. The Group follows a
precautionary principle with reference to both acquisitions of
new plants and continuous operations. Potential non-compli-
ance, disputes or items that pose a material financial risk are
reported to Group level in accordance with Group policy. No
such significant item was reported in .
Electrolux products are affected by legislation in various
markets, principally involving energy consumption, producer
responsibility for recycling, and restriction and management
of hazardous substances. Electrolux continuously monitors
changes in legislation, and both product development and
manufacturing are adjusted to reflect these changes.
ELECTROLUX ANNUAL REPORT 