Electrolux: Funding Green Manufacturing Through EIB Loan

Electrolux Group, a leading global provider of household appliances, has secured a substantial €200m (£206m) loan from the European Investment Bank (EIB).

This funding is designated for research and development aimed at improving energy efficiency across several European nations, including Italy, Sweden, Germany, Poland and Romania.

With this investment, Electrolux will focus on developing technologies that are both greener and more digitally advanced than current products. Specifically, the funds will target reducing energy consumption and resource utilisation in Electrolux’s products.

Slated for completion by 2026, the primary R&D activities will be based in Pordenone, Italy, a key operational hub for Electrolux.

These advancements align closely with the European Union's ambitious goals to promote environmental sustainability and accelerate digital transformation.

The European Investment Bank's perception

Support from the 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.

“Reducing energy consumption and the enhancing sustainability of home appliances are crucial steps towards a greener future.”

Thomas Östros, Vice President of the EIB, is a key advocate for Electrolux's sustainable 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 part of the InvestEU programme, which aims to unlock more than €372bn (US$383bn) in additional investments across Europe by 2027.

The purpose of this project is to support initiatives such as the European Green Deal and widespread digitalisation.

Refining innovations in home appliances

Through its next steps, Electrolux will use the loan to refine innovations in home appliances, such as those for food preservation, fabric care and dish care, integrating advanced digital technology across its product range 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, Elena mentions that appliances account for about 85% of their lifecycle CO₂ emissions.

Therefore, any improvement in efficiency can significantly impact reducing the environmental footprint.

Electrolux and EIB's partnership

The financing from the EIB marks another chapter in the longstanding partnership between the financial institution and Electrolux, which dates back to 1989.

Remarkably, this is the fifth occasion Electrolux has benefited from the EIB's support, a testament to the bank's confidence in Electrolux's ability to drive 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 seamlessly with its corporate objectives. In 2023, the company reported sales of US$12bn and employed 45,000 people across 120 markets globally.

With this latest investment, Electrolux is better positioned to combine top-notch performance with substantial sustainability, heralding a new era for household appliances where efficiency and responsibility go hand in hand.

“Our focus is to develop smarter and more resource-efficient products to help consumers live more sustainably," Elena concludes.

Explore the latest edition of Manufacturing Digital and be part of the conversation at our global conference series, Manufacturing LIVE.

Sign up to our weekly newsletter here.

Discover all our upcoming events and secure your tickets today.