Transparency in Supply Chains
 

Electrolux Group statement on slavery and human trafficking 2022

About the Electrolux Group

The Electrolux Group is a global leader in home appliances, offering solutions for households including products such as refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small domestic appliances.
The Group has 40 factories on all continents and sells around 60 million products to customers in around 120 countries every year, under brands including Electrolux, AEG, Zanussi and Frigidaire.
In 2022, the Electrolux Group had sales of SEK 135bn and 51,000 employees.

Our commitment

The Group's Code of Conduct and Workplace Policy set out provisions for human rights and labor standards in our own operations. The same requirements are reflected in the Electrolux Supplier Workplace Standard which applies to our suppliers. This Standard defines a zero-tolerance principle towards forced, involuntary, or trafficked labor. This includes indentured, bonded, and unapproved prison labor
choice also known as modern slavery.
Electrolux has over 1,700 direct material suppliers throughout its markets. The Electrolux Responsible Sourcing Program monitors and supports suppliers by screening supplier candidates, monitoring compliance, educating suppliers and building transparent and supportive relationships.

Identifying risks

The Electrolux Group appreciates that certain geographical locations and industries in its supply chain present greater risks of modern slavery. These risks include the use of child labor and other forced, bonded or indentured labor.
Electrolux Group assesses and addresses risks and conditions regarding forced and bonded labor in our product supply chains on an annual basis. The risk analysis is conducted by Electrolux Group, using input from Verisk Maplecroft, a global agency that monitors political, economic and social risks. The number of countries deemed at high risk for forced and bonded labor within our sphere of influence totaled 18 in 2022, and included for example Brazil, China, Egypt, Mexico, Romania and Thailand. Direct suppliers of all categories including components and finished goods - as well as service suppliers are part of the risk assessment. Certain categories of service suppliers, such as manpower agencies, facility management companies and security providers are in themselves considered as high risk.

Auditing and Effectiveness

In order to assess the effectiveness of the risk analysis referred to above, Electrolux conducts audits of suppliers in high and medium risk countries to evaluate supplier compliance with company standards, including forced and bonded labor in supply chains. In 2022, 306 (237) audits were conducted, of which [90] (41) were performed by third party assurers and the rest by our own dedicated Responsible Sourcing auditors. Even though the pandemic eased in many regions in 2022, important players implemented lockdowns, which contributed to supply chain shortages and prolonged impact on businesses around the world. Given such conditions, we continued our monitoring and auditing processes and ran both on-site and remote supplier assessments. The audits are neither independent in that they are carried out by Electrolux Group, nor are they unannounced. Any finding of elements of forced labor puts the supplier in "Disqualified" status until the situation has been remedied, thereby preventing further sourcing assignments from
this supplier. In 2022, there were 3 cases indirectly related to forced labor-related, mainly related to partially retaining worker compensations for future deductions (all 3 requested to be addressed). For information, in case of forced labor or modern slavery-related case is identified, the Responsible Sourcing team has processes in place to support suppliers throughout the remediation process, through training and dialogue.

Certification

The Supplier Workplace Standard is included either in procurement contracts or in a separate formal agreement signed by the supplier.

Electrolux has joined the Responsible Minerals Initiative (formerly Conflict-Free Sourcing Initiative, CFSI), allowing us to influence those suppliers sourcing from countries affected by conflict. Our approach is based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, and is embedded in our policies and activities.

Internal accountability

Electrolux Group maintains accountability standards and procedures for employees and onsite contractors and all are expected to uphold the Workplace Policy. The line managers' responsibility is reinforced by specific e-learning, including requirements for management of suppliers.
Within the Purchasing function, the formal sourcing forum used for all sourcing decisions over EUR 50,000 mandates a completed Supplier Workplace Standard-screening.

Training

Training for our employees on Ethics, Code of Conduct and the Workplace Policy, including human rights is ongoing within the organization. Electrolux Group provides training for employees who have direct responsibility for supply chain management, which includes practices to manage incidents of forced and bonded labor. Our procurement professionals are regularly trained in responsible sourcing procedures.
Suppliers are trained as part of audits in separate seminars and workshops, as well as through e-learning which is available in 6 languages. In 2022, we reached 3020 (5,532) suppliers in different types of capacity-building initiatives.
 

For more details on our Responsible Sourcing Program, including audit outcomes and targets, please see Electrolux Sustainability Report.

Joint modern slavery statement under section 14 of the Australian Modern Slavery Act 2018

For the purposes of the Australian Modern Slavery Act 2018, the reporting entity under this statement is Electrolux Home Products Pty Ltd (ACN 004 762 341), which is the holding company in Australia for the Electrolux Group. Electrolux Home Products Pty Ltd's only operating subsidiaries are Vintec Club Pty Ltd and Electrolux (NZ) Limited.

This statement has been approved by the Board of AB Electrolux as the parent company in the Electrolux Group. The operations in Australia include the manufacturing of home appliances. Electrolux Group manages global Responsible Sourcing for and on behalf of Electrolux Home Products Pty Ltd and its subsidiaries. It is acknowledged that identifying and responding to the risk of modern slavery in local procurement practices is an area that Electrolux Group in Australia is committed to maturing. Ongoing and regular consultation regarding these matters has occurred between key personnel at Electrolux Home Products Pty Ltd, its subsidiaries and AB Electrolux.