Sustainability in the home appliance industry is constantly evolving – and there is no doubt that the rate of progress is only accelerating. Governments across the world are firming up their commitments to 2030 and beyond, regulatory initiatives are following suit, and sustainable choices are fast becoming top of mind for any future-forward industry professional, regardless of sector and area expertise. With the immense environmental impact – and equally robust potential – of the architecture, design and construction industry, it’s one of the crucial sectors advancing the global sustainability agenda. Considered product specification – including home appliances – is fast becoming a fundamental cornerstone of environmentally driven design practices.
The global consumer is becoming increasingly concerned with environmental impact, too, and this trend is reflected in the Australian market. The “Consumer electronics: Safety and sustainability in 2023” report by YouGov, an online research data and analytics technology group, indicates that sustainability has moved up from tenth place for previous purchases to seventh for future purchase priorities. This suggests that consumers are increasingly receptive to sustainability when considering new purchases and may be more receptive to more environmentally friendly products.
“Consumer expectations have shifted dramatically over the last 10 years in regard to sustainability,” says Daniel Virgona, Senior Sustainability Manager at Electrolux. “We see this played out across the news and media every day, resulting in greater awareness and movement amongst consumers. Whether it's from energy efficiency, product provenance, circularity or social responsibility.”
Daniel adds that the Group’s robust internal research spanning 10 key markets and over 12,000 respondents confirms that sustainability is a key selection criterion, with a staggering 93% of consumers drawn to the idea of a more sustainable life. “Globally, two out of three consider sustainability as an important factor when buying electrical appliances,” he expands. “And that means, we need to be firmly on top of our game.”
And that, Electrolux certainly is. A leader in sustainable solutions when it comes to home appliances, Electrolux has been paving the way when it comes to positive environmental impact at scale. While already accomplished in the sustainability space, the company is not planning on slowing down – especially in light of the new Corporate Sustainability Reporting Directive (CSRD) coming into effect later this year in the EU, giving sustainability data the same level of importance as financial data. “These metrics will need to be externally audited and published within the Annual Report,” Daniel explains.
Shaping Living for the Better
This is certainly the kind of environmental rigour Electrolux is more than happy to embrace. The Group has been driven by the ambition to shape living for the better for over 100 years, prioritising the sustainable consumer experience innovation as a key driver for long-term profitable growth. “Back in 1991 we implemented our first environmental policy and by 1995 published our first environmental report,” Daniel explains. “We have a proud set of sustainability milestones that have been recognised externally and have been evolving and improving throughout that journey to inform where we are today.”
Since 2016, the Groups 'For the Better 2030' framework has guided its business strategy. In 2021, the company further reinforced this framework by introducing long-term incentives for top managers to drive a sustainable business strategy. This framework reflects the most relevant sustainability themes, identified through a thorough analysis and informed by collaborative dialogue with stakeholders.
The themes within the framework translate into actionable goals that Electrolux is looking to achieve by 2030, falling into a few major areas objectives many industry professionals will already be familiar with: Better Company, Better Solutions and Better Living. “The framework also helps fulfil the Group’s broader purpose to Shape Living for the Better,” says Daniel, “and address the expectations of the Global Reporting Initiative (GRI) and the UN Sustainable Development Goals (SDGs).”
So, what are some of the most pertinent initiatives the company is undertaking to advance its sustainability journey under the For the Better framework?
Better Company
Operations remain one of the main focus areas for Electrolux, and they are looking to continue making incremental progress building on the significant strides that have been made in this space over the years.
“Globally, 60% of our energy use came from renewable sources and we have seen efficiency improved by 5.7% compared with 2020,” Daniel says. The company also improved water efficiency of its operations by almost 40% compared to 2015 by strategically implementing a range of water-saving measures, and – Daniel adds – almost 100% of Electrolux’s total manufacturing waste was either reused or recovered, with the aim to have 100% of their factories “Zero Waste to Landfill” certified by a third party by 2025.
In addition, from a company point of view, Electrolux continues focusing on advancing the efforts of the Electrolux Food Foundation. Having met the previous target of three million meals an impressive seven years ahead of time, Electrolux has now doubled the target, setting to provide six million meals to those in need in the next six years.
Better Solutions
This area of the framework is where the Group’s sustainable product innovation really shines – the global home appliances leader is introducing more efficient products that save both energy and water, while delivering additional benefits.
“In Europe, we have recently launched our new Electrolux and AEG EcoLine selection,” Daniel enthuses. “It’s our most energy-efficient kitchen and laundry appliances, and our most efficient home care appliances. Electrolux and AEG EcoLine make it easier for both retailers and consumers to select these products with confidence, either online or in-store.”
In addition, Electrolux is also committed to delivering on their UN Cool Coalition agreement, which assumes phasing out High Global Warming Potential gases from products containing refrigerants. The end of 2023 saw Electrolux phase out the gases from 97% of their offering, and the company is committed to addressing the remaining 3% by 2026 at the latest.
Better Living
While Better Company and Better Solutions are fundamental aspects of the Group’s framework, Better Living is its very core. Driven by the desire to shape living for the better for over 100 years, the company is always looking to improve their offering to ensure that their products enhance the lives of those who use them. So, what has their attention at the moment? Fostering sustainable eating as the preferred choice. Now, how is Electrolux going about it?
“We address this through products that we offer as well as education and awareness to promote more sustainable food habits,” Daniel explains the two-fold strategy. “Almost 30% of food waste reduction can be achieved in our new built-in refrigerators and our air fryer functionality in our ovens uses little to no oil for healthier cooking.”
The ambition to positively affect the global community’s quality of life extends beyond the kitchen, and better fabric garment care stands as another essential point of focus for Electrolux. “Our objective is to make clothes last twice as long with half the environmental impact,” Daniel states. “We are continuously pushing to improve the next generation of energy efficiency with machine software developments and have introduced new features, such as Colour Care, which treat the water to improve the use of detergents even in cold temperatures.”
This multifaceted approach reinforces the Electrolux Group’s leadership in sustainable home appliances, while highlighting its potential to drive much broader positive change that can inspire and shift behaviours. Deeply concerned for people and the environment, the Group’s steadfast and uncompromising commitment to pursuing increasingly ambitious environmental goals serves as an example for any major global manufacturer. And it’s this unwavering commitment that has been recognised by the global environment non-profit CDP (Carbon Disclosure Project), and in the Household Durables category of the Dow Jones Sustainability Index.
With such an impressive track record and ambitious priorities, what’s next for Electrolux?
What’s next?
The commitment to climate goals of a net-zero value chain by 2050 remains the fundamental objective for the global powerhouse. “Our climate goal roadmap includes our new science-based climate target that was approved by the Science Based Targets initiative (SBTi) in 2023. It also includes the commitment to contribute to the United Nations Global Compact Business ambition for 1.5°C,” Daniel explains. “We achieved our first science-based target in 2022, three years ahead of plan, and developed a new target to maintain the momentum.”
As outlined by the Group’s Chief Technology and Sustainability Officer Elena Breda “the new target has been designed to help reduce emissions across Electrolux’s operations (Scope 1 and 2) by 97% by 2030 compared with 2015. We aim to achieve the target of net-zero emissions in our operations by 2033 despite the challenging global economic outlook and some manufacturing processes to be addressed together with our suppliers,” Elena explains. “With approximately 85% of the climate impact of an appliance generated when it is in use, the target will help us to offer more resource and energy-efficient products, which is where we can have the greatest impact.”
The Group’s aspirations are further underscored by partnerships and collaborations that help foster a more sustainable mindset at large. Some of the most crucial collaborations are with Stena Recycling, an organisation Electrolux partners with on circularity, as well as Workplace Pride, a cornerstone of diversity and inclusion. These commitments are also reflected in the Group’s pledge to the UN Global Compact. As a long-term signatory, the global appliances leader expresses its commitment to the 10 fundamental principles on human rights, labour, environment and anti-corruption, which continue to be absolutely critical to all of the Electrolux Group’s sustainability efforts.
To say that the sustainability journey is guided by consumer trends would be a significant understatement – while most certainly in touch with the evolving needs and preferences of the global community, Electrolux takes it upon itself to lead the way by offering more sustainable products that not only promote a more sustainable way of living, but also strive to improve its very quality. It's this outstanding thought-leadership and unwavering commitment to innovation that prioritises the wellbeing of both people and the planet that positions the global home appliance leader as the perfect choice for the architecture, design and construction community driven by the same beliefs, principles and ambition to create better built environment – and shape living for the better.
