Recycled materials in consumer products opportunities & challenges. Cecilia Nord Group Sustainability Affairs AB Electrolux

Transcription

1 Recycled materials in consumer products opportunities & challenges Cecilia Nord Group Sustainability Affairs AB Electrolux 1

2 MARKETS COUNTRIES MILLION Electrolux 2013 Position Sales SEK 109 billion Op income SEK 5.2 billion Sales in more than 150 markets A world leader in appliances 150 People 61,000 in 60 countries 60 Products More than 50 million products per year To meet the real needs of consumers and professionals 50 2

3 A long tradition in sustainability ISO Group standard since 1996 Environmentally leading products Sustainability reports since 1995 Advocating sound environmental principles Promoting eco-efficient products - launched Ecosavings in 1997 Endorsing Global Compact (2002) - founder of the Nordic Network 3

4 Circular Economy in the 90 s - Functional sales 4

5 Circular Economy in the 00 s - Producer Responsibility Founded in 2002 by Braun, Electrolux, HP and Sony Cost-effective implementation Innovative recycling strategies Pan-European recycling competition National implementation of compliance scheme European Recycling Platform WEEE, PV, batteries and packaging schemes 29 compliance schemes in 15 countries 2,400 members in Europe Collected 2,000,000 tons of WEEE (2013) WEEE in the EU Today ~10 million tons of WEEE is generated per year In 2020 it is estimated to be 12 million tons Collection target for 2019 is 20 kg per capita Ref. ec.europa.eu/environment 5

6 Circular Economy in the 10 s - Closing the material loop Venturing into recycled materials in vacuum cleaners Adding a Green member to all premium platforms Expanding the sales from N Europe to all continents 6

7 Circular Economy in the 10 s - Closing the material loop Planned Green range relaunch and enlargement in 2010 Addressing two main environmental challenges Poor management of plastics Lack of recycling Vision Raise awareness of environmental issue Stimulate greater supply of plastics & show potential use Boost distribution and sales of green products in the category 7

8 Closing the material loop - The challenges of pushing boundaries Technical - connected to product Existing products & tools Several polymer types Sub-supplier dependencies Quality-, aesthetical & chemical compliance requirements Design requirements Commercial / organizational - connected to campaign Credibility Speed to market Low involvement product Breaking the clutter in the market Lighting the internal fire

9 Closing the material loop - Realizing opportunities > % sales increase Close to 30% of Ultra Silencer platform sales Reaching +200M people, in the most successful campaign in company history

10 Closing the material loop further pilots GREEN Steam Iron range with recycled plastics and energy savings * 99% RECYCLED PAPER ** 27% RECYCLED PLASTICS *** 30% AUTO-OFF SAVINGS **** >60 CASH ENERGY SAVINGS (3h/w, 6Y) 10

11 Closing the material loop - Applying the knowledge Total usage in the European Small Appliances plant tons of recycled PP, representing one third of the PP used! 11

12 Recycled materials - Does it make sense to go mainframe? Being guided by a product life-cycle approach, we work to reduce the environmental impact of our products throughout their life. Materials, after product use, are the second big environmental footprint contributor. End-of-life Materials Manufacturing Transportation Use Source: Öko Institute. Typical carbon footprint of a WM 12

13 Cost [M SEK] Recycled polymers what is the potential? Electrolux plastic consumption - Major Appliances Europe 750 Size of balls and number represents Global Warming Potential [t CO2-eq] PU foam 380, PS-refrig. 185, PP-co 15,000 ABS 60,000 HIPS 85,000 PP/compound 30,000 GPPS 145,000 PP-ho 100,000 Total: - 300,000 tons of plastics - 1,000,000 ton CO 2 eq 25,000 50,000 75,000 Volume [tons] 13

14 Recycled polymers - Chemical compliance Electrolux requirements for recycled plastics - Introduced as an Annex in the Electrolux Restricted Material List Guidelines to promote the use of recycled plastic without compromising a high quality and environmental standards of Electrolux products Includes: Legal requirements Electrolux requirements and recommendations 14

15 Recycled polymers - The Electrolux approach TARGET: minimizing the risk deriving from introduction of recycled plastic TECHNICAL GUIDELINES for our suppliers of recycled plastic were developed, requirements and quality procedures, ensuring supplier process control and full reliability of the recycled plastic grade SUPPLIER APPROVAL Supplier AUDIT to verify process control, quality and capability MATERIAL APPROVAL Material is homologated according to internal specs. Physical and chemical properties are assessed. COMPONENT APPROVAL Homologation of the component is run for final approval

16 TRACEABILITY Full TRACEABILITY of the material is a key point for minimizing the risk of introduction of recycled plastic. From the lot delivered Electrolux requires the supplier to be able to trace back the process up to the scraps bales used. Process recording is verified during supplier audit procedure Incoming scraps bales are codified with supplier, date and reference num. Operating schedule for washing/shredding lines and extrusion lines is traced and documented (num of scrap bales processed) Monitoring quality checks on material are done and recorded during extrusion. Lot certification (Certificates of Analysis) is performed on final product. Final delivery reports production date and lot.

17 The advanced scenario and its challenges Introducing recycled PP in high weight & volume parts could mean Recycled polymer content in all product categories Up to 14% of total plastics [weight] in recycled grade GWP of PP used lowered by 20% RECYCLED PP (advanced scenario) 14% Challenges: Communication Conflicting customer requirements VIRGIN 86% ELUX EMEA plastic consumption TOTAL polymers ELUX EMA-EMEA consumption 17

18 To conclude You can only work in parts of the life cycle you control or can influence. Material changes must positively impact the total resource efficiency of the product and the cost equation must work, even if changed. Customers and consumers are needed onboard to complete the journey. Be patient the journey will take longer than you expect. For now, Electrolux is going from Vac from the Sea. to Back from WEEE 18

19 To be continued France: Component of Vigeo Index Sustainability industry leader in the world ( ) The UK: Component of the FTSE4Good Index Series ( ) Sector leader ( ) Germany: Component of Oekom Research (2012) Global: Sustainability leaders and Gold Class (2013) The most sustainable corporations (2012) UN Global Compact 100 stock index (2013) Component of the World s Most Ethical Companies ( ) Climate Disclosure Leadership Index & Climate Performance Leadership (2013) Leader in household durables (2013) Financial analysts and organizations like CDP rate Electrolux among sustainability leaders. In 2013, Electrolux was ranked #35 in The World's Best Regarded Companies for CSR.

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