How Electrolux is Pushing EU Green Tech Into the Future
Electrolux Group, a leading global provider of household appliances, has received a substantial €200m (US$206m) loan from the European Investment Bank (EIB).
This funding is earmarked for research and development focused on energy efficiency across various European nations including Italy, Sweden, Germany, Poland and Romania.
With this funding, Electrolux will place a strong emphasis on developing technologies that are both greener and more digitally advanced than current products.
In particular, the funds will target a reduction of both energy consumption and resource utilisation in Electrolux's products.
Slated to conclude by 2026, the primary R&D activities will take place in Pordenone, Italy, which is a critical operational hub for Electrolux.
Such advancements align closely with the European Union's ambitious goals to enhance environmental sustainability and push forward digital transformations.
The view from the European Investment Bank
Backing from EIB comes with high expectations of mutual benefits. EIB Vice President Gelsomina Vigliotti is particularly optimistic about the investment's impact.
“This agreement highlights our commitment to fostering innovation and sustainability in Europe’s leading industries,” she says.
“Reducing energy consumption and the enhancing sustainability of home appliances are crucial steps towards a greener future.”
Thomas Östros - also Vice President of the EIB - is an avid proponent Electrolux's sustainability leadership.
“Through this loan, we continue to support Electrolux in driving the green transition, strengthening Europe’s competitiveness, and contributing to a more sustainable future for both businesses and consumers,” he says.
The arrangement between Electrolux and the EIB is a part of the InvestEU programme, which is set on unlocking over €372bn (US$383bn) in additional investments across Europe by 2027.
This project's purpose is to provide support for initiatives such as the European Green Deal and widespread digitalisation.
An investment in sustainable exploration
Through its next steps, Electrolux will use the loan to hone innovations in home appliances such as those for food preservation, fabric care and dish care, integrating advanced digital technology across its product line to enhance both functionality and the user experience.
“The support Electrolux Group receives from EIB is important in our work to achieve our second science-based climate target, which was approved by the Science-Based Targets initiative after we had achieved the first target three years ahead of time,” says Elena Breda, the Chief Technology and Sustainability Officer at Electrolux.
Highlighting the importance of improved efficiency, she mentioned that appliances account for about 85% of their lifecycle CO₂ emissions.
Therefore, any enhancement in efficiency can significantly impact reducing the environmental footprint.
Electrolux's ongoing relationship with the European Investment Bank
The financing from EIB is just another era in the longstanding partnership between the financial institution and Electrolux, dating back to 1989.
Remarkably, this instance marks the fifth occasion Electrolux is benefiting from EIB's backing, a testament to the bank's confidence in Electrolux's capacity to foster significant environmental and technological advancements.
“Our focus in the coming years will be to accelerate synergies between technology and sustainability to develop smarter and more resource-efficient products to help consumers live more sustainably,” Elena explains.
Electrolux's strategic ambition to mitigate its environmental impact aligns with its corporate objectives seamlessly. In 2023, the company boasted sales of US$12bn and a workforce of 45,000 across 120 markets globally.
With this latest investment, Electrolux is better positioned to blend top-notch performance with substantial sustainability, heralding a new era for household appliances where efficiency and responsibility go hand in hand.
Elena encapsulated this vision aptly, “Our focus is to develop smarter and more resource-efficient products to help consumers live more sustainably.”
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