Sustainability Report 2007
Creating lasting value
Social and environmental responsibility is not new to Electrolux. In fact, our investments in environmentally-sound products extend over decades. A new trend, however, is that consumers are starting to demand it.
I notice this trend often when I talk with both our consumers and our retailers. They recognize the role energy-lean appliances have in tackling climate change. I believe that the time for sustainable products has arrived.
Today, just under a quarter of our gross profits in Europe comes from products with a strong sustainability profile. Our aim is to build on our competitive advantage in environmental excellence to increase this share. This generates lasting value for households, for the environment and for the Electrolux brand.
I am proud of our achievements. We have dedicated significant resources – human and financial – to sustainable in-novation. Continuing to meet – or even exceed – our customers’ expectations in this area is a challenge to which Elec-trolux has a long-term commitment.
The right climate for change
To raise the profile of our most environmentally-sound appliances, every business sector is launching a green range of products. They will proactively market and sell the most efficient appliances in terms of energy and water consump-tion. As standards of living improve around the world and more households acquire appliances, we have to minimize the impact this has on our planet by helping consumers leapfrog to energy-lean technologies.
Our efforts don’t stop at products. We are improving the efficiency of our operations. Group Management has commit-ted to cutting energy use across all our factories by 15% by 2009. This will also help us reduce our CO2 emissions and improve our operating margins. This is a first step. By becoming systematically aware of our energy use, we can reduce still further.
With our footprint becoming increasingly global, our aspiration is for the imprint we leave to be a positive one – envi-ronmentally, socially and ethically. Through our Responsible Sourcing Program, we are engaging suppliers to pursue the standards defined in our Code of Conduct and Environmental Policy. In China, Latin America and Eastern Europe, we are actively raising workplace standards and enhancing business practices.
We can be part of the solution. Electrolux is driving the shift to more energy-efficient products. The technology already exists to help us lead more climate-smart lives. What’s needed now are strong market incentives that support green consumer choices. I urge governments to explore how tax credits can help to reduce society’s carbon footprint.
We live in a globalized, resource-constrained age. Transforming these constraints into opportunities will allow us to create lasting value.
Stockholm, April 2008
Hans Stråberg
President and Chief Executive Officer
