Electrolux: Climate leadership in cooling

Electrolux surpasses climate goals three years early, leading the cooling industry with green finance. As global temperatures climb, so does the demand for cooling solutions. This increase is a boon for the cooling industry but poses significant challenges for the environment.

Energy consumption for space cooling has more than tripled since 1990, now contributing to over 7% of global greenhouse gas emissions, as highlighted in a recent report by the Carbon Trust and UN Cool Coalition. These emissions are projected to surpass 10% of global emissions by 2050 without significant intervention.

Makhtar Diop, Managing Director of the International Finance Corporation (IFC), emphasises the crucial role of the private sector in funding and innovating sustainable cooling solutions. The report advocates for widespread adoption of passive cooling, super-efficient equipment and appliances, and the use of ultra-low Global Warming Potential (GWP) refrigerants and insulation foam gases.

Who's leading the charge?

The report reviews 55 cooling suppliers, noting a significant increase in companies with Science-Based Targets initiative (SBTi) validated targets, rising from 16 to 31 in two years. Most have set ambitious Scope 1 and 2 targets for 2030, with nearly all committing to Scope 3 targets for the same period.

Nine suppliers, including Electrolux, are recognised as 'transformers' for their robust climate ambitions and decarbonisation efforts.

Electrolux: Cooling industry’s net zero vanguard

Electrolux stands out for its proactive approach, meeting its ambitious SBTi verified climate targets three years early. With a commitment to reduce absolute Scope 1&2 GHG emissions by 80% by 2025 from a 2015 baseline, and a 25% reduction in Scope 3 emissions, Electrolux has already achieved an 82% reduction in Scope 1 and 2 emissions and met its Scope 3 target.

The Group is leading in phasing out high-GWP gases, replacing them with low to ultra-low GWP alternatives in 97% of its products by the end of 2023.

Paul Huggins of the Carbon Trust applauds Electrolux for its sustainability leadership, highlighting its achievements and support for industry-wide climate action, bolstered by green financing.

Green financing

Electrolux has channelled SEK 6.8bn into green assets through its Green Financing Framework, issuing five Green Bonds in 2022 to support clean operations and the development of circular products.

These investments aim for a 20% improvement in energy efficiency in manufacturing and the creation of product lines that are 15% more energy-efficient, expected to reduce CO2 emissions by 240,000 tonnes.

Elena Breda, who recently took over as Chief Technology and Sustainability Officer at Electrolux, is dedicated to developing sustainable products that align with Electrolux's 'For the Better 2030 Goals'.

Encouraging climate cation

The report suggests that cooling suppliers like Electrolux, which are leading the way towards net zero, share several characteristics: clear SBTi-verified targets, a collaborative approach to industry transformation, and significant capital investment in sustainable operations. They leverage green finance, such as green bonds, to fund these transitions.

To achieve net zero cooling, suppliers must commit to ultra-low GWP refrigerants and super-efficient equipment, address Scope 3 emissions aggressively, and collaborate on industry-wide solutions.