It’s widely accepted that although each one of us bears responsibility to make more sustainable decisions and minimise the impacts of climate change however we can, a far greater contribution can be made by companies. Businesses – and larger businesses in particular – have the ability to drive sustainability through their own operations, their supply chains, their products and, in turn, their customers. Electrolux Group's take on ESG responsibility certainly reflects this layered sense of accountability, and their sustainability framework – aptly titled ‘For the Better 2030’ – is already driving results.
Electrolux Group is all too aware that the evolving global megatrends shaping the world at large create both challenges and opportunities for sustainability in their business. For the Better 2030 helps them manage these shifting sands across a number of key areas:
Demographics
Global demographic trends such as population growth, the growing middle class, an ageing population and urbanisation, are increasing the demand for home appliances, which puts more pressure on energy and natural resources. Electrolux Group is meeting this challenge with strong innovation targeted at improving the environmental performance of their products.
Resource and planetary boundaries
With ongoing and irreversible damage to the planet’s fragile ecosystems now a reality, Electrolux Group is focusing on the ability to work within planetary boundaries by developing circular business models that promote resource efficiency, such as product subscription (which positions an appliance as a service), repair or take-back services.
“We see planetary boundaries as a tool, not a hindrance,” explains Monica Mazioun, Electrolux Group’s Design Lead for Sustainability. “With a megatrend towards a more transient lifestyle, one of the business models we’re looking at is appliance-as-a-service. So essentially enabling people to rent appliances so that when they need to leave a place rather than just getting rid of stuff, we can come in, get the appliance, refurbish and repurpose it appropriately. It makes it easier for consumers, and ultimately means fewer appliances produced, and less waste.”
Technology and digitalisation
With new technologies scaling rapidly and globally, and innovations like the Internet of Things (IoT) enabling new business models and functionality through connected appliances, Electrolux Group is looking to stronger consumer empowerment, closer supplier integration and circular business models to capitalise on the opportunities for environmental impact presented by technology.
Always a strong global leader in the sustainability space, the company has evolved the way they think about sustainability, now a defining characteristic that makes financial, social, and environmental sense. And it’s certainly showing results, with the Group’s most energy and water efficient products accounting for 24% of total units sold and 39% of gross profit in 2022. “We’re actively working towards a science-based target that has been approved by the Science Based Targets initiative, and are committed to contributing to the United Nations Global Compact Business ambition to limit global warming to 1.5 C° by achieving a climate neutral value chain by 2050,” says Monica. In addition, the company also takes its responsibility as a corporate citizen very seriously, and to that end the Electrolux Food Foundation that has engaged with more than 124,000 people since 2016 to inspire more sustainable eating and support those in need.
But all of this strategy is nothing without action and impact, and Electrolux Group is already making waves. “We’re incredibly proud of the fact that we’ve been able to meet our 2025 science-based climate target three years early,” says Monica. “We managed to reduce Scope 1 and 2 emissions by 82% and Scope 3 emissions by more than 25%, compared with 2015.” They continue to work towards efficiency and climate neutrality in their operations by transitioning towards renewables (98% of the electricity used in global operations came from renewable sources in 2022), and implementing self-made frameworks, such as the Zero Waste to Landfill program, to which 55% of their factories are now certified.
The company continues to drive sustainability across products too, through innovations like a built-in refrigerator range with an Ecometer that helps consumers to make more energy efficient choices. They have introduced refrigerator solutions such as Cooling 360 and ColdSense to help foods last longer and help reduce food waste. Front-load washers now save 450 litres of water per year compared with a top-load washer. They also launched a vacuum cleaner without paint to reduce chemical use, energy and material impact, and end-of-life recyclability. In addition, they launched the consumer focused Break the Pattern campaign, which raised awareness among millions of consumers on the environmental impacts of “throw-away fashion” and how to make clothes last longer, using Electrolux products.
But perhaps one of their most exciting innovations is within the demo HyHome, launched in partnership with the Australian Gas Infrastructure Group (AGIG). The conceptual HyHome features hydrogen gas-powered appliances, and is an exploratory look into a possible future where hydrogen gas (which produces only heat and water vapour when burned). Electrolux Group’s concept UltimateTaste 900 Hydrogen Gas harnesses the full power of hydrogen gas to offer unparalleled efficiency and sustainability, and zero greenhouse gas emissions when burned from renewable hydrogen gas while delivering swift and precise heat. And while the cooktop is still currently in prototype, it’s testament to Electrolux Group’s commitment to enabling better and more sustainable living in the future (enshrined in their Better Living 2030 program).
Electrolux Group is all set to keep the proverbial pedal to the metal where sustainability is concerned, with a laser focus on achieving the goals set out in the For the Better framework, as well as a long-term incentive program for senior management that is directly connected to those sustainability targets. But, as Monica says, the real success is driven by the understanding that sustainability and business are now one and the same. “Sustainability is fundamental to our purpose to shape living for the better by promoting more sustainable living for millions of people around the world,” she sums up. “And we truly believe that by focusing on that purpose and sustainable strategy we’re making a pivotal contribution towards the long-term success of our business – and the future of the planet.”
