Electrolux Group’s 2025 Sustainability Journey: Accelerating the Transition to a Responsible and Circular Future

Electrolux Group’s 2025 Sustainability Statement presents one of the company’s most comprehensive and ambitious plans to date. Anchored in the European Sustainability Reporting Standards (ESRS), the report outlines how Electrolux is reshaping its business strategy, operations, and value chain to align with global climate goals, mounting regulatory expectations, and growing consumer demand for sustainable solutions. While the Group has long positioned sustainability as a strategic cornerstone, the 2025 statement demonstrates a significant evolution: sustainability is no longer an initiative — it is the operating system.

At the heart of Electrolux’s transformation is its “For the Better” framework, which has guided the company for nearly a decade. Built on three pillars — Better Company, Better Solutions, and Better Living — the framework integrates nine long‑term sustainability goals and a suite of science-based climate commitments. These are aligned with the UN Sustainable Development Goals, the UN Global Compact, and the Science Based Targets initiative (SBTi). In 2025, Electrolux began revising the framework to incorporate new findings from its updated Double Materiality Assessment and respond to evolving stakeholder expectations and global environmental realities.

Climate Leadership: A Rapid March Toward Net-Zero

Climate action remains the company’s largest and most urgent priority. Electrolux aims for net-zero emissions across its value chain by 2050, supported by SBTi‑approved near‑term targets requiring an 85% reduction in Scope 1 and 2 emissions and a 42% reduction in key Scope 3 categories by 2030, from a 2021 baseline.

The 2025 results show strong progress. Electrolux has already reduced Scope 1 and 2 emissions by 45%, and Scope 3 emissions by 33%. These reductions stem from significant decarbonization levers: boosting energy efficiency in manufacturing, increasing renewable electricity procurement to 97%, electrifying operations and logistics, phasing out high‑impact refrigerants, and launching more energy‑efficient appliances.

Since 85% of Electrolux’s total carbon footprint occurs during the use phase of its products, the company continues to invest heavily in product innovation. In 2025, 26% of total units sold belonged to its most resource‑efficient product tier, generating 36% of gross profit, demonstrating that sustainability and profitability reinforce one another.

A robust Climate Transition Action Plan operationalizes this strategy, linking production, R&D, procurement, supply chain, and product development to clear emissions‑reduction outcomes. Climate performance is tied directly to executive compensation: 20% of senior leaders’ long-term incentive pay depends on achieving CO₂‑reduction milestones.

Circularity and Resource Efficiency: Designing for a Regenerative Future

The shift from a linear to a circular model is another major theme of the 2025 statement. Electrolux is rethinking how products are made, used, and recovered by focusing on three principles — Use Less, Use Longer, Use Again.

In 2025, recycled steel and plastic represented 23% of total material use, with a target of 35% by 2030. This was supported by new internal standards aligned with ISO 14021:2016 to improve traceability and data accuracy for recycled content. Meanwhile, more than 99% of manufacturing waste was recycled or recovered, and 91% of finished‑goods sites achieved Zero Waste to Landfill certification, despite geopolitical and infrastructural challenges at a small number of locations.

Electrolux also advanced circular consumer solutions. The Repairability Index in France reached an average of 8.5/10, reflecting better spare‑parts availability, improved product design, and clearer consumer guidance. Refurbishment pilots in Latin America and waste‑to‑resource initiatives in Asia further demonstrate how Electrolux is exploring secondary‑use pathways across its global footprint.

Protecting Water Resources and Ecosystems

Water stewardship plays a key role in Electrolux’s sustainability agenda. The company set ambitious 2025 targets: a 25% increase in water efficiency in high‑risk areas and 5% in all other regions, compared to 2020. By 2025, Electrolux achieved 24% efficiency improvements in water‑stressed regions and 7% globally, driven by closed‑loop cooling systems, rainwater harvesting, and improved monitoring.

Electrolux also completed its first Group-wide biodiversity and ecosystems assessment, using frameworks such as ENCORE, WWF’s Biodiversity Risk Filter, and TNFD’s LEAP approach. While the most significant impacts occur upstream and downstream — especially through raw material extraction and consumer detergent use — two manufacturing sites were identified as being located close to Key Biodiversity Areas. Importantly, the assessment found no negative biodiversity impacts from Electrolux-owned operations, thanks to ISO 14001‑aligned mitigation systems.

Chemicals, Pollution, and Safe Materials Management

Pollution prevention remains a core operational focus. Electrolux maintains a rigorous Restricted Materials List, aligned with global regulations such as RoHS, REACH, the Stockholm Convention, and PFAS restrictions. In 2025, the Group tested 3,500 components for chemical compliance and reached 470 suppliers for SVHC reporting under the EU SCIP regulation.

The company is already phasing out PFAS in food‑contact applications in Europe and North America and has committed to proactive chemical substitution when safer alternatives are available.

People, Inclusion, and Ethical Business Conduct

Electrolux’s social commitments continue to evolve, with a focus on safe working environments, fair treatment, and diversity. In 2025, the company achieved a Total Case Incident Rate (TCIR) of 0.33, moving steadily toward its 2030 target of 0.30. All manufacturing sites are now certified to ISO 45001.

The workforce numbers 40,917 employees, with women comprising 40% of new hires and 37% of STEM roles. The share of female people leaders reached 30.3%, progressing toward the 2030 target of 40%. The company undertook broad inclusion initiatives across markets, as well as extensive training in ethics, anti‑corruption, and human rights.

The Speakup Line, Electrolux’s global whistleblowing system, handled 570 cases in 2025, reflecting greater trust and transparency, with no corruption convictions or fines.

EU Taxonomy Alignment: Transparency for Green Finance

Electrolux reports extensively under the EU Taxonomy, an increasingly critical element for investors. In 2025:

• 6.7% of turnover

• 6.8% of CapEx, and

• 13.8% of OpEx

qualified as Taxonomy‑aligned, driven almost entirely by the production of high‑efficiency appliances under the Climate Change Mitigation objective. These disclosures reflect improvements in product efficiency, stronger alignment with energy-labelling standards, and expanded eligibility assessments.

A Company Transforming Its Future

The 2025 Sustainability Statement makes clear that Electrolux is not merely complying with regulation but transforming its business around environmental and social purpose. From aggressive decarbonization to circular design, biodiversity protection, water stewardship, and human‑rights due diligence, the Group is embedding sustainability at every tier of its value chain.

Electrolux’s progress is measurable, its commitments science‑based, and its roadmap transparent — and while challenges remain, especially in Scope 3 emissions and supply-chain resilience, the company’s 2025 report signals both readiness and responsibility as it moves toward a net‑zero, circular, people‑centered future.