Electrolux: Using Suppliers to Drive Sustainability Strategy
Electrolux, one of the world’s leading home appliance manufacturers, is pioneering better sustainable practices across its supply chain for both itself and partners, as it works with them to support the transition into new practice.
The domestic appliance company has strong sustainability leadership aspirations, after having its second science-based climate target approved by the Science-Based Targets initiative, after achieving its first target three years ahead of schedule .
Now Electrolux Group is looking at its suppliers as an extension of its own operations, outlining its plans in its 2023 Sustainability Report.
Partners in its supply chain are expected to support Electrolux's sustainability agenda by actively working to improve their own performance in terms of the impact on the environment and on people. As the group believes this drives progress, not only in it's own supply chains, but in supply chains around the world.
Electrolux and Science Based Targets
Elena Breda, Chief Technology and Sustainability Officer for Electrolux Group, said: “We have developed a new target to keep up the momentum on driving climate action throughout our value chain.
“Our new science-based climate target aims to reduce the group’s emissions from operations (scope 1 and 2) by 85% and emissions mainly from products sold (scope 3) by 42% between 2021 and 2030. Our new target was approved by the Science Based Targets initiative at the end of 2023.”
The new target is aligned with the Paris Agreement, which aims to limit average global temperature rises to 1.5°C this century to avoid the most severe impacts of climate change.
Logistics is also a key area in the supply chain as Electrolux Group emits more greenhouse gas emissions by distributing its goods than through the energy consumed in the group’s manufacturing. Approximately 270,000 metric tons of carbon dioxide are annually emitted through the global transportation of the group’s goods via land, sea and air.
Electrolux Responsible Sourcing Programme
Last year, the group continued to work with suppliers to improve their sustainability performance through its Responsible Sourcing Programme and the auditing of their operations.
A Responsible Sourcing scoring model has been globally implemented and is used in sourcing decisions to reward and promote good supplier performance on sustainability, as well as to improve underperforming suppliers.
In 2023, 742 of the group’s suppliers were considered to be critical and were the focus of the program.
Electrolux defines a critical supplier as a supplier that has elevated risks related to their operations, such as running factories in high-risk areas, or production processes that pose higher risks for environmental, labour and human rights violations, or health and safety incidents.
As well as continuing to be on integrating social sustainability aspects into the supplier evaluation process, spearheaded by supplier compliance with the Electrolux Group Supplier Workplace Standard. Progress was also made in standardising social sustainability requirements across sourcing processes, which involved promoting collaboration across the value chain.
It’s a continuation of Electrolux’s efforts, after a strategy called For The Better 2030, which seeks to reduce its carbon footprint, have resource efficient operations and drive better performance from their procurement ecosystem.
Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain LIVE 2024
**************
Procurement Magazine is a BizClik brand
