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 prots in Europe comes from products with a strong sustainability prole. 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 signicant resources human and nancial to sustainable innovation. Continuing to meet or even exceed our customers expectations in this area is a challenge to which Electrolux has a long-term commitment. The right climate for change To raise the prole of our most environmentally-sound appliances, every business sector is launching a green range of products. They will proactively market and sell the most efcient appliances in terms of energy and water consumption. 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 dont stop at products. We are improving the efciency of our operations. Group Management has committed to cutting energy use across all our factories by 15% by 2009. This will also help us reduce our CO2 emissions and improve our oper-
ating margins. This is a rst 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 environmentally, socially and ethically. Through our Responsible Sourcing Program, we are engaging suppliers to pursue the standards dened 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-efcient products. The technology already exists to help us lead more climate-smart lives. Whats needed now are strong market incentives that support green consumer choices. I urge governments to explore how tax credits can help to reduce societys carbon footprint. We live in a globalized, resource-constrained age. Transforming these constraints into opportunities will allow us to create lasting value.

800 600

Initial audits 20052006 Zero tolerance Major non- Minor nonconformance conformance Total ndings Follow up 2007
% Climate change Recycling Fair treatment of employees
Result of the Electrolux materiality process, %
Chemicals in the environment Health and safety in the workplace Environment & labor standards in supply chain
In total, 500 employees responded to the materiality survey that we conducted in early 2007. We polled representatives from the top ten investors in Electrolux, along with retailers and consumer organizations. All were requested to select ve top issues from a list of 13. The chart shows how individual stakeholder groups ranked the issues.
Company values Globalization Anti-corruption Equal opportunity (gender and ethnic) Contributing to local communities Global income gap Restructuring 0 Customers and consumer organizations (7) Investors (9) 100
Electrolux employees (503)

climate change

Climate change strategies
Tackling climate change is a responsibility Electrolux takes seriously. It is an issue that also presents opportunities. Our climate-smart appliances meet the demands of growing numbers of engaged consumers. Our target to reduce energy use is also a win-win investment: less CO2 in the atmosphere and operational savings for Electrolux.
With our biggest environmental impacts occurring during the product use phase, by far our greatest potential to reduce CO2 is to sell energy-lean products. In 2007, products with the best environmental performance represented 17% of Electrolux units sold and 22% of our gross prots in Europe a rise from 2006 of 11% and 16% respectively. Goals for products and operations To build on this momentum, in 2008 each business sector will dene a green range of products that are energy and water lean, or which feature climate-smart functions. The product sales and protability will be tracked on an annual basis. Group Management has also committed to reduce energy use in our operations generating savings of approximately SEK 100m (12m) annually. (See p. 12) As a rst step, it is an ambitious target, but not an unrealistic one says Henrik Sundstrm, Vice President, Sustainability Affairs. Yet there are challenges in applying common, group-wide targets because of differences in regions, consumer preferences, products, and even the energy mix in facilities. To track progress against our target, a management system has been set up at Group level. Evaluations will also be conducted on a per unit basis through yearly performance assessments.
Raising awareness One area with a critical inuence on how appliances impact CO2 is consumer choice. Electrolux is therefore using targeted marketing campaigns to communicate the role of efcient appliances. Our US brand Frigidaire developed the campaign Plant the seeds of change to encourage the purchase of Energy Star-rated products. In partnership with Clubmom.com, Frigidaire also launched a site to provide tips for consumers on how to maximize appliance efciency. After a week, 1,000 visitors had contributed advice on how they live green. In Europe, a communications platform will be launched in 2008 under the Green Spirit banner. It will encompass TV advertisements, print, a website and point of sale material. Energy efciency across the spectrum The Electrolux Group continues to improve the efciency of all its products. We realized a 2% product efciency improvement this year. While some products, like refrigerators, lend themselves to continuous improvement, for others such as dishwashers, improvements require re-engineering of the products design. Our stakeholders expect Electrolux to lead and continually improve. They also expect us to dene goals. Our three-pronged approach is designed to exceed these expectations.

Fleet average

% 20 0
Refrigerators/ Dishfreezers washers Washing machines
We realized a 2% energy efciency improvement in our product offering in Europe in 2007. Refrigerators demonstrate the highest efciency improvement, and dishwashers remain at similar levels as 2006 and 2005. The energy index is set at 100% in the year 2002.

Share of gross prot

Electrolux products with the best environmental performance, accounted for approximately 17% of total units sold within household appliances in Europe and 22% of gross prot. In 2008, our green range appliances will be expanded to all business sectors in the Group.
In spring 2008, Electrolux Major Appliances in Europe will launch its Green Range marketing communications campaign. Products belonging to the range are the most energy-efcient and climate-smart appliances in each product category.
A presentation of our most energy-efcient appliances

Our material world

Climate change is a core material issue for Electrolux. In 2007, public awareness surged1, sparking debate over the role that individuals, government and business can play in reducing CO2 emissions. We clearly have an opportunity, a role and a responsibility to be engaged, says Henrik Sundstrm, Vice President of Group Sustainability Affairs. To map our journey, weve dened group-wide objectives. With our strong focus on innovation, our global presence and our broad consumer interface, Electrolux is in a unique position to effect positive change. Our efforts to reduce CO2 encompass our products, our operations and wider awareness-raising on the role of efcient appliances. This three-pronged approach is fully integrated into how we do business from boardroom to product design; from factory oor to marketing and communications. With climate change now rmly in the mainstream, our strategy is to remain a step ahead of this fast-moving challenge.
1) In an Electrolux 2007 survey of 2,400 consumers in 12 countries, 70% of those polled were concerned or extremely concerned about the impact human activities have on our environment.
Henrik Sundstrm Vice President, Group Sustainability Affairs

Ultrasilencer Green

Through a product life-cycle approach, we know how much energy is consumed in manufacturing, during operation and at disposal. The Electrolux Ultrasilencer Green uses 33% less energy and is made with 55% recycled plastic. It illustrates the impact and potential benets a smart vacuum cleaner can have on a consumers carbon footprint.
Consumer insight & product innovation
Energy savings and recycling rank highly as pro-climate activities in consumer research studies. The Electrolux Ultrasilencer Green meets the demand for energy efciency and more sustainable material use. Without compromising quality, performance or noise, it presents: 33% energy efciency* 55% recycled plastic

Production & transport
With recycled material, we consume 90% less energy during manufacturing than is used to produce the same components with virgin plastics. By using 55% recycled PP content for the body of the vacuum, 2 liters of crude oil and 80 liters of water are saved per vacuum cleaner. Ultrasilencer Green is manufactured in Lehel, Hungary. Products are distributed from the plant by truck. Through its Green Spirit program, Lehel has a program in place to contribute to Group targets to reduce energy and water use. Lehel, Hungary: 2009 Energy efciency in production

KWh/K Eur

An efcient suction fan unit combined with our Dust Magnet Floor Nozzle helps deliver the same performance in terms of dust pick-up with a lower wattage motor. Vacuum motors often waste energy by producing heat. Our 1,250W motor and nozzle produce comparable dust pick-up and little heat. *Compared to a 2000W vacuum cleaner

2,000 1,600 1,09

Actual Target
CO2 footprint of appliances
Environmental life cycle assessment
Electrolux has estimated that about 2% of the CO2 emitted in Europe relates to the use of the 630 million large and small appliances in operation. This is a signicant drop of 50 percent compared with the mid-1990s. Despite the increasing presence of electrical products in peoples homes, the CO2 footprint from appliances has continued to decline.
Material supply, 22% Manufacturing, 2% Transportation, 0.2% Consumer use elecrticity, 72% Consumer use water, 4%
The greatest environmental impact occurs when our products are in operation. For a washing machine, energy supply currently represents 72% of the life cycle impact. Through a concerted effort to develop more energy-efcient products, coupled with the introduction of market
Communicating with the consumer
With the Ultrasilencer Green, we aim to change the perception that high wattage equates to greater cleaning performance, by promising the same cleaning effect with lower energy. Vacuum cleaners and other small appliances are not encompassed in the EU energy labeling scheme that is otherwise compulsory in large appliances.

Use phase

The use phase represents about 75% of the products environmental impact. In its lifecycle, cutting energy used to operate the vacuum presents our greatest opportunity to save CO2. On average, a vacuum is used an hour a week and is expected to service a home for ten years. In its lifetime, the Ultrasilencer Green can save: 364kWh of energy; enough to make a 60W light bulb burn 24 hours for 253 days 320kg CO2 emissions Approximately SEK 700 (73) off energy costs over 10 years, equivalent to saving a third of the purchase price. (*Compared to a 2000W vacuum cleaner)
Average 2000W VC Ultrasilencer Green

Recycling

Recycling is vital for an energy-lean society. The recycling process has a net positive impact on CO2 by recovering energy. Wherever within the European Union a vacuum cleaner is purchased, there is a system in place to take back the appliance it replaces. Easy recyclability was a determining factor in the choice of materials for the Ultrasilencer Green. We attained 93% recyclability and most remaining material can be incinerated to recover heat.

Workplace Code of Conduct
Policy on Corporate Countering Bribery Legal Affairs and Corruption Environmental Policy VP, Group Sustainability Affairs
SVP, Group Communications Management and Branding
*Responsible for developing, communicating, monitoring and enforcing
Awareness of, and compliance with, the Workplace Code of Conduct are assessed through the ALFA (Awareness-Learning-Feedback-Assessment) system and on-site audits. Internal and external audits also monitor implementation of the Environmental Policy. A key priority for 2008 is to ensure group-wide policies are communicated across the organization. Particular focus will be placed on the Code of Conduct and the Electrolux Code of Ethics, which formalizes the principles for our relations with employees, shareholders, business partners and other stakeholders. Ensuring that everyone at Electrolux upholds high social and environmental values is vital in building the trust on which our brand success depends.
An analysis of our governance structure in relation to the GRI G3. Formulations of sustainability related codes and policies. 2007 Corporate Governance Report.
ALFA tracks Code of Conduct

*53 factories

Awareness of the Code Manager responsible for the Code Awareness of Management Practices
Manager responsible for Management Practices Initiated implementation of Management Practices Completed implementation of Management Practices Communicated the Code to all relevant managers Communicated the Code to all employees Documentation demonstrating compliance with the Code
Data covers 100% of our production facilites. Levels of awareness of the Code of Conduct, and how it is organized and communicated to managers and employees are high throughout the Group. Although implementation levels for managment practices are also high, there is room for improvement in 2008.
Data covers 100% of our production facilites.
Training and engaging staff
Training staff in our facilities about the Workplace Code of Conduct ensures that our ethical standards are upheld across the globe.
Code of Conduct Quiz in Thailand
New members of staff at Rayong Major Appliances and Professional Indoor facilities in Thailand learn about our Code during induction. This includes a game and a Question and Answer session to bring issues into sharp relief. To refresh awareness, a prize quiz in the facility newsletter was run to test employees knowledge and incorrect answers were followed up. To check that the Code is being properly applied, the facility was audited in 2007. No major issues were raised. Suppliers remain a challenge, however, as Likhit Somboon, HR Director, Thailand Manufacturing explains: We send suppliers a questionnaire and audit their factory for a day. Work on this will continue through the action plan within our Responsible Sourcing Program. (See p. 26)

Brazil in the limelight

Electrolux in Brazil set itself the daunting task of training over 5,285 staff in the Workplace Code of Conduct in 20 days, representing 82% of white collar and 93% of blue collar staff. Rather than present a dry list of dos and donts to attendees, the Human Resources (HR) team at Electrolux Brazil brought life to the Code. They hired professional actors to simulate Code transgressions such as bullying or discrimination. On feedback forms, 98% of those trained thought the experience was excellent. Staff with concerns or suggestions about the Code of Conduct can express them via an anonymous suggestion box, e-mail, a local web site or standard mail. The HR team tailors its response and actions according to whether the comment was a doubt, a suggestion or a serious criticism.
Induction training in Poland
Like Thailand, in Poland each Electrolux recruit learns about the Workplace Code of Conduct at induction and a signed acceptance form is kept on their HR le. During induction, employees are asked about their approach to health, safety or ethical situations to conrm their full understanding of the Code. Management training highlights the codes relevance, explains Krzysztof Spiehs, Plant Manager at Zarow: We identied Code of Conduct-related risks and opportunities and, based on them, we developed an action plan. Training may be in place, but Beata Krakowska, HR manager at Zarow knows their job is far from over: the real challenge is to implement the Code of Conduct amongst our suppliers, and to make sure that we maintain awareness of it in our factory.

Communicating the Code

Electrolux applies the Workplace Code of Conduct universally, including for suppliers and sub-contractors. It covers safety, health and environment, and addresses workers rights such as child and forced labor. In 2007, Code of Conduct training was conducted for our HR function, purchasing and other managers in Asia/Pacic, Poland and Brazil. They, in turn, have responsibility to train their own staff. In communicating the Code of Conduct, a local approach enables our employees to recognize how the Code is relevant to their workplaces, says Jens Schlyter, Manager, Corporate Social Responsibility. The training weve done in 2007 demonstrates the full gambit of how we communicate the big picture in a local context. Used annually at all units, the ALFA tool communicates the key concepts of the Code, offers feedback opportunities and tests its integration into Group units. In 2007, internal auditors assessed units in Thailand and China and audits in Mexico and Romania were conducted by third parties. Together with other Group staff functions, a group-wide ethics program embracing the Code of Conduct and other policies will be launched in 2008.

Safety net

Every safety incident is preventable with proper procedures, training and hands-on engagement by both manager and employee. One step at a time, we will reach our end-objective of zero accidents at our facilities.
Every factory within the Group has procedures to ensure a safe workplace. The factorys general manager and ultimately the head of the business sector have responsibility to see that they are effectively managed. Workplaces are monitored according to the Code of Conduct and management systems such as OHS18001. Of our 53 factories, 37 apply a standardized production method called the Electrolux Manufacturing System (EMS). Safety is one of nine indicators used to gauge procedures within EMS. The safety indicator is measured in incidents per 200,000 manhours, or the TCIR. In 2007, three business sectors worked towards a 10% global TCIR reduction target from the previous year. North Americas goal was a TCIR of 1.5. Three of four sectors achieved their objective. Best practice in North America Electrolux has demonstrated stable incident rates since groupwide data collection began in 2003. During this time, Electrolux has also opened factories in China, Thailand, Poland and Mexico. Our journey is best exemplied by Electrolux in North America. When we started in 2003, the industry recordable injury rate was about nine and we were at about 16. Today were at about one, says Keith McLoughlin, Head of Electrolux Major Appliances in North America. Today, our plant in Juarez, Mexico has a TCIR that ranks third of eight production locations in North America. Developing a common approach in Asia/Pacic Our three factories in China and Thailand have also demonstrated improved performance (all of which have a TCIR under 2), with improvements in Australia (TCIR 4.1 and 11.2, down 30 %). Weve taken what North America has done and were building on it, Tom Bell, who manages the health and safety program for Electrolux Asia/Pacic, explains. With our presence in low cost countries, we cant cut corners. In fact, we are off to a better start than our older factories. Work continues in two plants in Australia to enhance the safety mindset. As people become older, they are more susceptible to injuries, for example from lifting. The average age of our factory workers in Australia is 44. Our focus is therefore on wellness issues such as the importance of exercising and good eating habits. To develop a more coordinated approach in Asia / Pacic, general managers, safety and HR managers of their ve plants will meet in Hangzhou, China for an H&S summit in May 2008. Employee ownership of safety McLoughlin explains the key to safety: It just cant be a top-down management issue. Its got to be ingrained in the culture of all employees on the shop oor level. With this mindset, activities will continue at each facility to embed safety values and behaviors.

responsible sourcing avsnitt

Supplying change

Since 2004, supply chain Code of Conduct monitoring has been an integrated part of sourcing from China. As we rene our procedures, work conditions are improving amongst most suppliers but better detection also reveals more cases of non-conformance to resolve.
In 2007, 102 audits were conducted by Electrolux Code of Conduct specialists and 14 by external auditors worldwide. Our program placed particular focus on Asia. Following his 50th re-audit, Andrew Feng, Corporate Social Audit Manager within Electrolux Purchasing in China, drew two conclusions: the number of non-compliance cases was dramatically reduced by 38% but only seven out of 50 were in full compliance with our Code of Conduct. Our audit methodology has improved, which is why were nding more non-compliance by some suppliers than we did during initial audits, says Henrik Dahlstrm, Director of the Responsible Sourcing Program. While most categories show improvement, health and safety, child labor and working hours remain an issue in China. (See p. 28 and p. 29) Managing risk Responsible sourcing helps ensure that suppliers uphold the values enshrined in the Electrolux Code of Conduct and Environmental Policy. Supplier assessments take into account four areas of risk: 1. Geographical location (Asia, Latin America and Eastern Europe) 2. Extent of business with a supplier 3. Type of supplier relationship 4. Type of operation 2007 milestones Of ve objectives set in our 2006 Sustainability Report, four were achieved: Code of Conduct specialists are in place in China. Specialist teams in Eastern Europe and Latin America were approved by Group Management. Four purchaser training sessions were held in China and Thailand and one in Sweden. Follow-up audits were conducted in China with all active suppliers audited in 20052006.
Work in cooperation with Global Purchasing on our fth objective, the development of common procedures for Code of Conduct assessments, is ongoing. Our end goal is to introduce a methodology that includes all aspects of the purchasing organization. Achieving transparency and engagement along the supply chain is a long-term goal of Electrolux. Through training, we are helping suppliers foster a sense of ownership of the issues and facilitate sustained improvement.

Raising the bar Focus areas in 2008 include: Launch the program in Latin America and Eastern Europe Further develop our methodology and tools, including more detailed environmental requirements and criteria Internal training and capacity building within Purchasing and Quality organizations Introduce training sessions and other supporting activities for our suppliers outside the audit framework
Communicating a risk-based approach
Banco Fonders Sasja Beslik is among Swedens leading socially responsible investors. He puts our risk-based approach into broader context and explains his expectations of Electrolux. In a risk-based approach, location of the supplier in most cases supersedes other risk criteria. Brazil, China and Eastern Europe share a similar set of risks, but there are slight differences. Social issues lie closer to Brazilian culture--businesses have a tradition of being proactively engaged in society. Addressing environmental issues is less clear, however. On the whole, in Eastern Europe corporate responsibility is not a strong element of doing business. For emerging markets such as China, health and safety and overtime are among the key issues. The underlying problem is that companies are not necessarily provided with the full picture of their suppliers performance. I want to know that Electrolux has an organization in place to address these issues, the ndings it has uncovered and the action it has taken to address what it has uncovered.
Sasja Beslik Banco Fonder
No matter where our approximately 3,800 suppliers are located, we expect the same levels of compliance to the Electrolux Code of Conduct and Environmental Policy. In fact, both requirements are an integrated part of our purchasing policy. The Groups emphasis on cost reduction and quality, coupled with its sharp focus on universal standards on human rights, labor standards, environment and anti-corruption, present a complex challenge for managing the supply chain, says Francois van Caeyzeele, Chief Purchasing Ofcer for Electrolux. We are therefore driving this process with a disciplined and consistent approach. In the last three years, the share of purchases from low-cost countries has risen from approximately 30% in 2004 to 48% in 2007. Some regions pose higher risks for breaches in working conditions and environment than others, often because of poor enforcement of existing laws. In 2007, Electrolux continued to monitor progress in its responsible sourcing program in China, and piloted monitoring in Brazil and Eastern Europe.

*Jiao-jie is not her real name.

Perspectives: UNICEF

Anna Ryott, UNICEF Swedens fundraising director, provides her insight on child protection: In China, issues relating to children in the workforce are highly complex and are increasing at the same rate as its rapid economic growth. Some 58 million children have been left behind by parents seeking work elsewhere, increasing these minors vulnerability. When a company discovers children in its supply chain, each childs situation must remain in sharp focus. About 20 million children have migrated to urban areas from their home communities. School and healthcare rights as dened by the UN Convention on the Rights of the Child are therefore inaccessible to them. Upholding the convention should guide every companys approach. With the objective of protecting each individual child, companies should assess, dene policies and procedures on what happens to children when they are no longer employed. Provisions may include support to attend school, and/or reintegrating them into their home, school and community. We also recommend that the company consult with country-specic NGOs regularly.

Checking in

A visit to a factory in Ningbo City, China, shows the Electrolux audit process at work and highlights the typical issues uncovered. Among the audit ndings at this motor plant; worker compensation and overtime, re safety and juvenile worker protection.
A three-hour journey from Shanghai conveys Electrolux auditors to a vacuum cleaner motor assembly plant for an announced inspection of the facilities. The factory with its 400 employees, will take a full day to inspect. The plant is a key supplier for Electrolux Floorcare and a priority for the purchasing department. Auditors note employee ages, labor contracts, payroll documentation and time cards. They keep their eyes open for workers who look under-age, tired, have injuries or who work under potentially hazardous conditions. They also investigate whether potentially dangerous materials are used in production. At this plant, no chemicals are in evidence and the youngest worker was born in 1991. By close of day, factory management will receive a copy of our Corrective Action Plan, which includes recommendations on how to remedy the 17 ndings (8 major and 9 minor non-compliances). These include issues such as working hours, re safety, compensation and proper documentation for juvenile workers (over 16 years). The supplier is requested to respond within seven days, with an indication of how they intend to address non-compliances and when. Findings are reported to the responsible purchaser and the plant will be revisited within three months to monitor progress. An integral part of the visits, moreover, is our consultative role aimed at increasing transparency, engagement and understanding. Its not just about policing; we strive to help the supplier continually improve, Andrew Feng, CSR Audit Manager, summarizes.

A description of how Electrolux monitors corrective action

5. 6. 7. 8.

Two auditors entered the six story factory facility, employing 400 workers. The day-long announced inspection was a rst for the supplier. The 30-minute opening meeting with the factorys general and sales managers and security ofcer. We outline the purpose of the visit, why it is important to Electrolux and underline how good performance can improve their business opportunities. Audit specialists Lucy Wang and John Yan review the factorys human resource, nancial and licensing les. A tour of the production area veries whether employees work in an obstruction-free environment. We make recommendations on how to improve working conditions. Selected randomly from the payroll list and work-oor, eight employees are individually interviewed in a secluded area by our auditors. This inspection focused on the safety issues. Auditors check that re extinguishers are functioning and are easily accessible to workers. Health and safety represents 42% of our audit ndings in China. This audit score on health and safety was quite good. A worker dons proper noise protection equipment and gloves.
Follow up audit comparisons

China audit ndings 2007

Health and safety, 43%

Discrimination, 1%

Follow-up audits were carried out with all active Chinese suppliers that were audited in 2005 and 2006. The number of non-conformances has been dramatically reduced, especially in areas considered feasible to address, such as health & safety.
Working hours, 12% Wages, 16% Environment, 3% Under-age labor 5% General requirements, 3% Laws and regulations, 9% Supplier and subcontractor, 4% Forced labor (Deposits), 4%
More on audit ndings on page 38.

Zero tolerance

Major non- Minor nonconformance conformance

Total ndings

Initial audits 20052006

Follow up 2007

Spirited away in Italy
Sustainability is a cornerstone of Electrolux in Italy. Under the banner Green Spirit, we are building long-term engagement, not only with Italian consumers who want their brand of choice to walk the talk, but with employees, government contacts, trade associations and suppliers.
Driven by innovation, design and an increased product range, Electrolux is a leader in the Italian appliance market. Our standing is enhanced by being a shade greener than our competitors, thanks to a product life-cycle approach and strong internal engagement. The only way to achieve real environmental protection is through an integrated approach that can affect the entire life cycle of an appliance and that involves the whole value chain, says Gianfranco Schiava, Head of Electrolux Zanussi Italia. Electrolux in Italy has launched the Green Spirit program to engage suppliers, employees, trade associations and end consumers in the Groups commitment to the environment. Tapping into growing consumer interest, Green Spirit includes a series of new products to help consumers lead climate-smart lives. Our green product features go beyond energy efciency to help consumers reduce both waste and bottled water consumption. Engagement must start from within. Electrolux Floorcare and Professional sectors were integral partners in developing the Green Spirit program internally. Together, we are contributing to the group-wide 15% reduction targets for energy. We have also dened targets for water savings and reducing waste. The experience gathered here is serving as an inspiration for our factories all over Europe. (See p. 10)

Electrolux Consumer Insight Research: Importance of environmentally sound appliances
Energy Savings in Operations

90 Target 2009

All countries Sweden UK Netherlands USA Austria Italy Germany Belgium Spain France
Um augait autatio exer 0 secte faccummy

Poland

Russia
Um augait autatio exer secte faccummy
Green Spirit launch At the launch of Green Spirit in May, Electrolux in Italy played host to top manageDionsequisl ment, sustainability guru and economist Jeremy Rifkin and 200 eminent guests from Autpatue deliscing the media, NGOs, government as well as trade representatives. The objective was to Giam, conullutpat. Ut raise awareness and enhance the public augiam, sit, si tat pro dolorem diametum do le of our environmental engagement. Green Spirit et ilit wis numsan hen- intends to take its message to a dipis et, sectewide range of stakeholders, including more ent.Gue doloborting ex active dialogue with the Italian Minismin henittry of Environment on how to encourage ut. consumers to purchase energy-efcient products. Water will be Green Spirits underlying theme in 2008.

Susegana Group 07

The Italian consumer Italian SEKm consumers are increasingly recog-% nizing the role of appliance energy ef125,ciency (see above chart) and they want to see engagement in the issues by the com8 100,000 panies from which they purchase. In a survey conducted by IPSOS Mori* in October 6 75,000 2007, 33% of Italian consumers polled would 4 50,000 be more likely to purchase products from a company with a reputation for environmental responsibility. 2 25,* Corporate environmental behavior and the 07 impact03 brand value, October 2007, p. 6 on
Susegana factory Susegana was rst in Europe to kick off Dionsequisl, 22% the Green Spirit project for our production Autpatue deliscing, 2% a roadmap to cut facilities. Susegana set energy use by 15% Dionseeliscing, 0.2% by 2009, incorporating reductions of 4,992,000 kWh electricity Ruedeliscing, 72% and 3,800 tons of greenhouse gases. This Sequaeliscing, 4%the CO emitted by 1,200 corresponds to 2 cars driving 20,000 kilometers/year. The Giam, conullutpat. Ut augiam, sit, si plant also intends to cut water use by tat diametum do dolorem et ilit wis 150,000 m3. numsan hendipis et, secte doloborting Employees have access to environmenex ent.Gue min henit ut. tal data and can track the plants energy consumption targets and results in real time.

WWF cooperation

SEKm Electrolux in Italy has enjoyed a 15-year partnership with %
Wasting away Urban waste management has considerable impact on the Dionsequisl, 22% environment and has been a hot media topic recently in Italy. Autpatue deliscing, 2% The Electrolux bio-waste disposal unit manages and colDionseeliscing, 0.2% lects organic household waste, reducing waste volume by as much as 80%. Ruedeliscing, 72% Our patented system of counteracting blades makes it posSequaeliscing, 4% sible to grind all types of organic waste, which is then sprayed with liquid enzymes toGiam,the fermentationaugiam, sit, si stop conullutpat. Ut process and odor build-up. tat diametum do dolorem et ilit wis The unit is compact and can be easily tted to doloborting numsan hendipis et, secte kitchens. It provides the added benet of reducing the ut. ex ent.Gue min henit quantity of unseparated waste going to incinerators and thus minimizes use of plastic rubbish bags. It is available in Italy under the Electrolux brand. (See also p. 4)

Electrolux in Sweden

Electrolux was founded in Sweden in 1919 by Axel Wenner-Gren. Since then, Electrolux has grown enormously and now sells more than 40 million products to customers in more than 150 markets every year.
Sales In 2008 Electrolux net sales in Sweden totaled SEK 3,559 million. Electrolux products are sold at major chains and also at Electrolux Home storesa franchise chain that is run by Electrolux and has independent shop owners located throughout the country. Popular Electrolux brands in Sweden include Electrolux, Elektro Helios, Volta and Husqvarna. Facilities and offices Sweden is home to the Electrolux Groups headquarters, four production facilities, and a spare-parts warehouse: Group Headquarters The Electrolux Group has its headquarters in Stockholm. Approximately 800 people work at this office, although many of these employees work for other divisions, such as Floor Care and Small Appliances, the Swedish sales organization, and the service department. Motala Cookers and hobs are manufactured at this production facility. These cookers are mainly for the Electrolux, AEG-Electrolux, Elektro Helios, Husqvarna, VOSS and Rosenlew brands. They are distributed mainly to the Nordic market. Approximately 250 people work at this facility. Mariestad Refrigerators are manufactured at this production facility. These refrigerators are manufactured for the Electrolux, AEG-Electrolux, Elektro Helios, Husqvarna and Rosenlew brands. They are distributed mainly to the Nordic market. Approximately 550 people work at this facility.
Electrolux headquarters, Stockholm.
Electrolux in Sweden in brief Headquarters: Stockholm Number of employees: approx. 2,500 Production facilities located in: Motala, Mariestad, Ljungby and Nygrd Net sales: SEK 3,559 million (2008)
Ljungby Located near Vxj, this plant houses R&D, sales and production facilities for laundry products aimed at the professional market. Approximately 500 people work at this facility. Nygrd Bags and filters for vacuum cleaners are manufactured at this production facility, located north of Gothenburg. Approximately 50 people work at this facility. Torsvik Located outside Jnkping, this is a warehouse for spare parts in Sweden. Approximately 200 people work at this warehouse.

AB ELECTROLUX (PUBL)

POSTAL ADDRESS SE-STOCKHOLM VISITING ADDRESS S:T GRANSGATAN 143 PRESS HOTLINE +07 TELEFAX +61 INVESTOR RELATIONS +03 WEB SITE www.electrolux.com E-MAIL ADDRESS press@electrolux.com REG.NO. 556009-4178

Page 2 of 2

History In 1908, Swede Axel Wenner-Gren was strolling the streets of Vienna when he caught glimpse of a bulky vacuum cleaner. Although the machine was expensive and heavy (around 20 kilograms!), Wenner-Gren was inspired: in his mind, the machine became smaller, lighter and less expensive. And thus the Electrolux story started. The official founding of Electrolux occurred on August 29, 1919, when Elektromekaniska AB was renamed AB Elektrolux (the spelling was changed to Electrolux in 1957). Elektromekaniska was a wholly owned subsidiary of Elektron, where Wenner-Gren was the dominant shareholder. The new Elektrolux name was a combination of the company names Elektromekaniska, Elektron and Lux. Stock market listings The Electrolux share is listed on NASDAQ OMX Stockholm and the London Stock Exchange. Learn more If you would like to know more about Electrolux, visit www.electrolux.com or call our press hotline at +07.

Axel Wenner-Gren.

Electrolux is a global leader in household appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 markets every year. The company focuses on innovations that are thoughtfully designed, based on extensive consumer insight, to meet the real needs of consumers and professionals. Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners and cookers sold under esteemed brands such as Electrolux, AEG-Electrolux, Eureka and Frigidaire. In 2008, Electrolux had sales of SEK 105 billion and 55,000 employees.