After more than eight years as CEO and 16 years in the Group management team, Electrolux Group President & CEO Jonas Samuelson has today informed the Board of Directors that he will leave his position and the Board on January 1, 2025. The Board will now initiate a recruitment process for a successor
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CDP gives Electrolux Group an “A” for climate leadership
CDP has included Electrolux Group in the A list, confirming its leading role in performance and transparency on climate change🌍 “This is a fantastic result that recognizes the commitment of the people in Electrolux Group. Each of us contributes to reducing the our impact on the climate, from using less energy in our industrial activities, to designing and selling more efficient products. But we cannot do it alone and we must continue to collaborate along the entire value chain”, says Elena Breda, Chief Technology & Sustainability Officer. Electrolux Group has been working to address climate change for years and recently announced its second science-based climate target to reduce greenhouse gas emissions in products and industrial activities, in support of the Paris Climate Agreement
Carbon Trust report names Electrolux Group as a leader in climate action
Electrolux Group has been named a leader in climate action in the air conditioning industry in the Carbon Trust report, which offers a snapshot of how the sector is transforming to tackle climate change. We are one of four global manufacturers of products containing refrigerants that have made a clear commitment to phase out gases with high global warming potential (GWP) and to have a plan to replace them with low or very low GWP gases. By the end of 2023, we had replaced high-GWP gases from 97% of our products containing refrigerants and insulation foams
Electrolux Group announced its second science-based climate target
Electrolux announced that it has set a new science-based climate target to reduce greenhouse gas emissions in products and operations in support of the Paris climate agreement. The new target comes after the Group achieved its previous science-based target three years ahead of plan. “We’re very proud – says Electrolux Group CEO Jonas Samuelson – to have our second science-based climate target approved at the end of 2023 by the Science Based Targets initiative after achieving our first science-based target three years ahead of plan. We’re focused on keeping up our momentum to drive climate action throughout our value chain”. The new target aims to reduce the company’s direct and indirect emissions resulting from its own operations (scope 1 and 2) by 85% and to reduce the Group’s absolute scope 3 emissions (use of sold products, materials, transport of products and business travel) by 42% between 2021 and 2030. The target is aligned with the Paris climate agreement, which aims to keep the global temperature rise within 1.5°C this century to avoid the most severe impacts from climate change. Electrolux Group was one of the first 100 companies in the world to set an ambitious climate target approved by the Science Based Targets initiative in 2018. With the new scope 1 and 2 target, the Group will achieve a 97% emission reduction in operations by 2030 compared with 2015. “The new science-based target – explains Elena Breda, Chief Technology and Sustainability Officer at Electrolux Group – will bring us close to zero emissions in operations by 2030, despite the challenging global economic outlook and some manufacturing processes to be addressed together with our suppliers. As approximately 85% of the global climate impact of an appliance is generated when it is in use, therefore by offering resource and energy efficient products is where we can have the greatest positive climate y and our scope 3 target supports our work on this
Electrolux Group reports loss in the fourth quarter – driven by North America
Electrolux Group announced today that operating income, excluding non-recurring items, in the fourth quarter of 2023 is estimated to be approx. SEK -0.7bn (-0.6). The underlying loss in business area North America is estimated at approx. SEK -1.4bn (-1.2), driven by intensified price pressure, lower volumes and elevated cost levels related to the cooking manufacturing transition.
Net sales in the fourth quarter for the Group is estimated to be approx. SEK 35.6bn (35.8), an organic decline of about 1%. Operating income for the Group is estimated to approx. SEK -3.2bn (-2.0) and includes non-recurring items of approx. SEK -2.5bn (-1.4). Cash flow generation was strong in the quarter, expected to lead to an operating cash flow after investments for the full year 2023 of approx. SEK 3bn (-6.1).
The main driver behind the loss in North America was intensified price pressure and weak demand during Black Friday, as well as the remainder of the year. Cost discrepancy between production located in North America compared to certain parts of Asia, as previously reported, driven by currency, raw material and inflationary impacts, has resulted in lower market price levels, particularly in refrigeration, which is a key category for business area North America.
As previously communicated, the finalization of the transition of cooking manufacturing in Springfield from the legacy factory, which was closed in the quarter, to the new factory impacted earnings in North America negatively, both in terms of additional costs and impact on product availability. The ramp-up of the new Springfield factory is expected to be finalized in terms of volumes and cost efficiency by the end of 2024.
Elena Breda to lead Electrolux Group’s sustainability
From February 1 next year, Elena will lead Electrolux Group’s sustainability work as part of her wider new role as Chief Technology & Sustainability Officer, reporting to Electrolux Group CEO Jonas Samuelson.
“I really look forward to leading this core part of our business at a time when efforts by companies such as Electrolux Group will be critical to counteract climate change,” says Elena.
Elena succeeds Vanessa Butani who has been appointed to Chief Sustainability Officer at Volvo Cars.
Electrolux Group: all the 5 Italian sites are “Zero Waste to Landfill” certified
Electrolux Group, Italy is the first country in Europe to have all production sites certified “Zero Waste to Landfill” by Intertek, an independent external certification body. “Thanks to innovative projects, the scouting of new partners and technologies, the definition of procedures, the collaboration with suppliers and above all the commitment of the people who work at our sites – explains Massimiliano Ranieri, CEO of Electrolux Italia – we succeeded in 2022 to recycle and recover 99.7% of the waste produced, for a total of over 19,800 tonnes. Net of the approximately 2% that was converted into energy, this result led to an annual saving of over 56,000 tonnes of CO2 equivalent. This is an extraordinary result, which confirms how sustainability is at the center of Electrolux’s strategy from multiple points of view. Certainly from a product point of view, given that our appliances enable significant energy savings for consumers, but also from a production point of view, as demonstrated by the targets achieved thanks to the Zero Waste to Landfill programme”. The certification provides that less than 1% of the waste produced in each plant can be sent to landfill or incinerated without energy recovery. Electrolux Group has further raised the bar, going beyond the certifier’s requirements and compliance with the Italian and European law on waste management, disposal and transport. In fact, it has established that its production sites limit below 3% the waste that can be converted into energy. A desire that has a precise objective: to favor recycling and reuse projects.
Electrolux Group launches refurbished product subscription service for Swedish consumers
With the launch of AtEase (Electrolux Group’s new product subscription-based service for Sweden), consumers can make more sustainable choices. This innovation is part of Group’s ambition to reduce electronic waste and contribute to the circular economy, with Swedish consumers having the option to subscribe to a new product or a refurbished one. AtEase is an all-inclusive service that covers everything needed to keep the appliance running smoothly, including proactive maintenance, automatic shipments of accessories, and support (the appliance is replaced within three days if a fault occurs during the subscription). Crucially, every product returned to Electrolux Group is refurbished for reuse or gives life to new appliances by donating its parts. “If the product is too damaged or worn to be refurbished, we can reuse parts such as circuit boards, rubber bumpers, or casings to extend the life of other products. In fact, 75% of the parts we use in the refurbishment of a robot vacuum cleaner have been harvested from an end-of-life product”, says James Ostridge, Product as a Service Director. The products currently offered through AtEase include the Pure i9 robotic vacuum cleaner, Well A7 air purifier and Pure A9 air purifier. Further floor and air care products will be introduced later this year, and more products, including kitchen and garment care, will be added to the service over time. The launch of AtEase is a natural step following a successful pilot launched in 2019 to offer Swedish consumers the Pure i9 on a subscription pay-per-use basis. AtEase will also be introduced to further markets beyond Sweden in the coming years.
Electrolux Group Recalls Frigidaire Gas Laundry Centers Due to Fire Hazard
Electrolux Home Products recalled about 13,600 Frigidaire Gas Laundry Centers
The problem, according to the U.S. Consumer Product Safety Commission recall notice, is “The felt seal on the dryer drum can be folded inward which can lead to lint accumulation, creating a fire hazard.”This recall involves all Frigidaire Gas Laundry Centers with model numbers FFLG4033QW and FFLG4033QT. The Laundry Centers were sold in white and titanium colors and have “FRIGIDAIRE” written below the dryer door. The serial number is located on a white sticker inside the dryer door, and the following serial numbers are included in this recall:
Model Numbers
Serial Numbers
FFLG4033QWX
4E44114739 through 4E81603034
FFLG4033QTX
4E44308482 through 4E81603380
Remedy:
Consumers should immediately stop using the dryer of the recalled Laundry Centers and contact Electrolu
Electrolux Group sets provision mainly relating to French antitrust case
Electrolux Group will set a provision of approximately SEK 650m in connection to the previously reported investigation of alleged breaches of antitrust rules in France between 2009 and 2014. A minor part of the provision relates to settlement of another legal matter in Europe. The provision will be reported as a non-recurring item affecting operating income for Business Area Europe in the second quarter of 2023.
As previously disclosed in press releases and annual reports, Electrolux Group became in 2013 the subject of an investigation by the French Competition Authority regarding possible violations of antitrust rules. The Competition Authority thereafter decided to conduct two separate investigations of which the first, relating to the period 2006-2009, was completed in December 2018.
The provision communicated today relates to the second investigation. In February 2023, the Competition Authority issued a Statement of Objections involving various parties within the home appliance sector and where Electrolux France was alleged to have acted in breach of antitrust rules in France between 2009 and 2014.
A settlement has now been agreed with the Competition Authority and Electrolux Group is therefore in accordance with accounting principles setting this provision. The final amount will be decided at the end of the procedure.
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