Sweden. AB Electrolux

The loan has been provided to AB Electrolux to support its company-wide sustainability investments during 2024–2032.

The interest rate margin on the sustainability-linked loan is tied to Electrolux’s climate targets of reducing greenhouse gas (GHG) emissions from its own operations and value chain.

The agreed sustainability targets address:

• KPI 1: a decrease in Electrolux’s carbon emissions from own production by 85% by 2030 (Scopes 1 & 2)
• KPI 2: lower indirect carbon emissions in Electrolux’s value chain by 42% by 2030 (Scope 3)
• KPI 3: a decrease in carbon emissions from the use of sold products (with fixed energy mix and sales volumes) by 1% per year by 2030 (Scope 3)

KPIs 1 and 2 have been validated by the Science Based Targets initiative (SBTi) for the 1.5 °C alignment pathway.

The target achievements will be reported annually, and NIB will follow up the selected key performance indicators with the client.

Electrolux Group is a leading global appliance company. Under a group of leading appliance brands, including Electrolux, AEG and Frigidaire, the Group sells household products in around 120 markets every year. In 2023 Electrolux Group had sales of SEK 134 billion and employed 45,000 people around the world.

The targets set by Electrolux fit NIB’s environmental mandate and address material sustainability issues for the company. The agreed KPIs are linked to the company’s climate change mitigation targets, and the KPIs will address nearly 98% of the client’s GHG emissions. In addition to climate change, the KPIs will contribute to resource efficiency.

Electrolux has ambitious targets to also reduce indirect emissions occurring in the user phase of the products by increasing energy efficiency, as well as the circularity of the material. To achieve the targets, innovation and product development are therefore expected which may have productivity implications.