Appliance Retailer Sustainability Report December 2023

FEATURE

SUSTAINABILITY MARKETING | PRODUCTION | PACKAGING | EDUCATION | DIVERSITY | PRIORITIES

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THE TRANSFORMATION OF SUSTAINABILITY:

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From an expense to a cost-saving strategy

greater focus on sustainability is being driven by heightened awareness of environmental concerns. According to Euromonitor International’s latest Voice of the Industry: Sustainability Survey, between 50% and 60% of Australian consumers demonstrate awareness of sustainability issues, with most trying to have a positive impact on the planet.

This shift is evident in the appliance industry as consumers prioritise energy and water efficiency.

“This consideration is further accentuated by the ongoing inflationary crisis in 2023. Interest rates have placed significant pressure on mortgage holders, coupled with rising energy prices, which has led to a reduction in discretionary spending and diminished consumer confidence,” Euromonitor International research analyst, Icey Huang said.

“The surge in inflation is expected to impact consumer trade-offs between affordability and sustainable shopping in general. Consequently, consumers now view high energy ratings as a pathway to long-term savings, encouraging them to invest in energy efficient appliances.”

In refrigeration appliances, preservation/cooling technology has become a central focus in enhancing product competitiveness, particularly in light of rising food costs. “The importance of refrigerators that not only keep ingredients fresh, but also extend shelf life to reduce food waste, cannot be overstated,” Huang said.

In fact, the Sustainability Survey found that three in five (62%) consumers in Australia reduce food waste to have a positive impact on the environment.

Turning to laundry appliances, an increasing number of consumers favour models that combine shorter washing cycles with full washing capacity.

“This feature is particularly appreciated by Australian consumers for convenience in revitalising lightly soiled clothing without the need for a full wash. The incorporation of less intensive washing cycles is seen as a practical means to achieve substantial energy savings. In addition, auto dosing has gained market interest as it prevents excessive sudding during washes and minimises wastage.”

A GLOBAL OUTLOOK

In 2023, consumers around the world continue to prioritise public health threats including climate change and air quality, according to the 2023 Global Outlook on Sustainability report published by Mintel. The survey revealed climate change as the top environmental concern, among 47% of respondents, up from 39% in 2021, ahead of air quality (37%), water shortages (35%) and plastic pollution (32%), with deforestation rounding out the top five at 25%.

Exposure to extreme weather events and supply shortages have seen sustainability shift from a nice-to-have premium purchase to an essential issue. Focused on resilience towards diminishing resources, coupled with rising food and energy prices, six in 10 (60%) Australian respondents feel utilities are becoming unaffordable.

When exploring sustainable behaviours in the last 12 months, the most popular activity was recycling packaging (61%), closely followed by planning meals at home to avoid food waste (55%), up 3% since 2021. AR

We’ve been named the most sustainable home appliance company in the world* *Based on Corporate Knights 2023 Global 100 Most Sustainable Corporations list

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MORE THAN A MARKETING MESSAGE

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Beko’s in-store point of sale is made from sustainable and fully recyclable materials.

Continuing to be recognised for its sustainability efforts by several authorities, Arçelik was listed as the highest-scoring household durables company for the fourth consecutive year among 46 companies assessed in DHP Household Durable Industry in the Dow Jones Sustainability Index of the S&P Global Corporate Sustainability Assessment, achieving a score of 87 out of 100 (as of December 2022).

lobally, more than one-third (38%) of consumers don’t trust companies to be honest about their environmental impact, and in Australia, this increases to 41%, according to the Mintel 2023 Global Outlook on Sustainability report.

When canvassed on what would encourage them to consider buying more responsible products, respondents prioritised labelling to show a product’s direct environmental impact, using a system similar to the grading schemes on food packaging like the Australian Health Star Rating (HSR).

A recent GfK Consumer Life report shows when it comes to barriers for purchasing green products, 60% of Australians agree or somewhat agree that environmentally friendly alternatives are too expensive, while 33% say they don’t work as well and 17% say their family won’t accept any alternatives to products they use.

Arçelik, parent company of Beko, is now in the 15th year of its sustainability journey, having long been an advocate for sustainable development from a holistic perspective.

Economic, environmental, and geo-political challenges and uncertainties are driving consumer behaviour changes, coupled with government regulations and standards, which are bringing sustainability more into focus.

Beko promotes sustainability by engaging customers through various channels, such as digital advertising, trade publications, face-to-face and online training. Since 2022, Beko has offset the carbon footprint of large-scale training events and on the shop floor, point of sale is made from sustainable and fully recyclable materials with modular displays that can be easily changed and refreshed. →

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Having re-evaluated its role in the global landscape, Smeg recognises the need for greater contribution and is amplifying its commitment and dedication to sustainability, which spans over two decades, evident in its award-winning headquarters and energy ratings.

BSH is dedicated to creating a positive impact with a commitment to developing efficient appliances that are increasingly engineered for a longer life, more readily repairable and, that maximise recyclability and re-use at end of life.

Since 2020, BSH has achieved carbon neutrality at all locations worldwide as part of scope 1 and 2 emissions. Every BSH product is developed and manufactured without leaving a carbon footprint behind. The company has a goal of achieving 100% green energy use by 2030 and making products with at least 50% recycled material by 2030.

With the belief that a sustainable future begins with informed choices, BSH says water and energy rating labels give customers the power to make environmentally conscious choices, conserve resources and save costs. As part of its mission to make sustainable living accessible to all, BSH offers water and energy efficient products across all price ranges.

Electrolux views its sustainability messaging as trusted education – how together people can make a difference in what they do and how they do it.

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Appliance Retailer December 2023 – Sustainability Report

“From a sustainability perspective, our messaging is not conditional upon purchasing a certain product from us. Naturally we would like consumers to see our products as being beneficial in achieving outcomes that have a positive and sustainable impact, but underlying our messaging is shifting behaviours to facilitate the necessary change to make a difference,” Electrolux ANZ managing director, Kurt Hegvold said.

“Our EcoLine range, for example, is promoting the best performing products in each category to provide value and sustainable benefits. This allows a sustainable focus in our retail messaging, providing assurance to our partners in which products to recommend with confidence.”

For more than 120 years, sustainability has been the backbone of Miele’s corporate strategy.

Issues such as increasingly scarce resources, climate change, dwindling biological diversity and supply chain complexity are addressed through a variety of approaches.

Anker released its first annual ESG report this year – a big step forward in its journey towards being more sustainable. Globally, Anker has partnered with Oceana, the largest international ocean conservation advocacy organisation dedicated solely to ocean conservation and is exploring local ESG partnership opportunities in Australia.

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Rather than just labelling a product as eco-friendly, it’s important for us to explain the product attributes and what we’ve done to reduce its environmental impact.

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ABOVE: Beko offsets the carbon footprint of largescale training events.

BELOW: Miele vacuum sealing drawers help extend shelf life of food.

Recent examples of Miele’s local communiciation initiatives include ‘Stories of Sustainability’ with chefs Matt Stone and Jo Barrett, as well as the ‘Eat Better, Tread Lighter’ series made in collaboration with first-generation farmer and second-generation restauranteur, Palisa Anderson.

Sustainability has been part of Nespresso’s DNA since its inception 36 years ago, with the first portioned coffee system designed for precision consumption, optimising the use of water, energy and coffee to minimise waste.

“Sustainability is considered at every step, from the farms where coffee is grown through to the locations where Nespresso coffee is enjoyed.

We communicate our actions with partners and customers through our Positive Cup reports, product packaging, marketing materials, in-store activations, and our B Corp certification. We also encourage recycling behaviour in our boutiques, on packaging, and via our owned channels,” Nespresso Oceania managing director, Stefan Vermeulen said.

Communication from Olimpia Splendid is largely via word of mouth, namely in training sessions with retailers and at trade fairs for resellers and end consumers. The messages are focused on solutions such as heat pumps and inverter technology, highlighting efficiencies in lower power consumption.

Panasonic is communicating a consistent message at a global level through the Panasonic Green Impact (PGI) initiative, which embodies efforts towards a more sustainable global environment, and ultimately a better life for all.

Panasonic positions sustainability at the heart of its business, taking practical steps to reduce its own carbon emissions while contributing to reducing carbon emissions from factories to homes.

Panasonic companies are currently responsible for around 110 million tonnes of carbon emissions per year across the group’s entire value chain (Scopes 1, 2 and 3). By 2050, the goal is to reduce and avoid more than 300 million tonnes of carbon emissions – about 1% of current total global carbon emissions.

By 2030, Scope 1 and 2 emissions will be reduced to zero – this includes not only the group’s estimated 250 production sites and factories, but office locations and energy used for these sites. By 2050, the group will have decarbonised its entire value chain (including Scope 3 emissions) and product lifecycles.

What’s important to Belkin when marketing sustainability is context and making the message simple and concise.

“Rather than just labelling a product as eco-friendly, it’s important for us to explain the product attributes and what we’ve done to reduce its environmental impact. We want to ensure we can talk specifically and transparently about product attributes in a way that’s tangible for end consumers to ultimately help them make more informed choices. Too often, companies use broad general terms without explaining details behind it and why it’s meaningful,” Belkin head of global sustainability, Ernie Roberts said. AR www.applianceretailer.com.au

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ENVIRONMENTALLY FRIENDLY production methods

ABOVE: Arçelik employees at the company’s solar panel plant.

BELOW: Smeg headquarters in Guastalla, Italy.

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ost Australians (64%) agree or somewhat agree that it is important for companies to take environmentally responsible actions, such as using environmentally friendly materials, according to the GfK Consumer Life report. Interestingly, more than two in five (44%) agree or somewhat agree that the government is responsible for addressing environmental problems, and not individual people.

Arçelik’s sustainable actions are aligned with five strategic pillars: Climate Change and Decarbonisation, Water Management, Circular Economy, Biodiversity, and Products that Reduce Environmental Footprint.

Environmental efforts are guided by legal compliance and policies, as well as internationally recognised standards. All manufacturing plants have an ISO 14001 Environmental Management System (EMS) Certificate, supporting environmental

protection, pollution prevention, waste minimisation, as well as reducing energy, water and materials consumption. The company’s first Industry 4.0. factory in Ulmi, Romania, was selected as one of the World Economic Forum (WEF) Sustainability Lighthouses.

Smeg is enhancing its energy infrastructure, expanding its photovoltaic system in Italy and introducing a new setup at its Bonferraro dishwasher factory. These systems will cover 31% and 20% of energy needs. Overall power will increase from 28kWp to 1.9MWp, while Bonferraro’s will reach 1.6MWp. Comprising over 900 photovoltaic modules with power optimisers, these initiatives are expected to remove 1,710 tonnes of carbon emissions annually, marking a 42% reduction in electricity-related emissions.

The evolution of production methods at BSH is underpinned by sustainability targets including the goal to reduce waste sent to landfill to below 1% by 2025, making products from at least 50% recycled →

At all locations, Smeg has switched to energy-efficient LED lighting, monitoring consumption at transformer stations, and using water from wells for production. Its motor vehicle fleet has transitioned to hybrid or electric models.

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Appliance Retailer December 2023 – Sustainability Report

MINIMISING OUR E N V I R O N M E N TA L I M PA C T Smeg’s dedication to preserving and defending the environment stands as a pillar of our mission.

Enter Tritan Renew: a material composed of 50% certified recycled content, utilising cutting-edge molecular recycling to transform challengingto-process plastic waste into fresh, sustainable materials.

Several Smeg products are made with 50% certified recycled content.

Find out more smeg.com/tritan-renew

www.smeg.com/tritan-r enew

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material by 2030 and ensuring 95% of materials used in products can be recycled by 2030. Also by 2030, BSH aims to reduce indirect emissions resulting from the material, logistics and product energy consumption by 15% compared to 2018 levels. BSH appliances are designed to conserve water, energy and detergent to help prevent waste in the kitchen and laundry.

A strong focus for Electrolux is the Zero Waste to Landfill program, setting a target for all factories to be certified by 2025. By adopting waste solution initiatives, the Dudley Park factory in South Australia was one of the first to achieve this certification.

“Upon identifying waste enamel powder as a major source of waste to landfill from the factory, the local team created a solution to incorporate a proportion of waste powder into the enamel powder mix. The solution avoids sending approximately six tonnes of waste enamel powder to landfill each year and was a key step in certifying the factory to the Zero Waste to Landfill program. We remain committed to seeking opportunities for investment in technologies that are increasing the use of renewable sources,” Kurt Hegvold said.

Since 2021, Miele has been using low-carbon or ‘green’ steel in the manufacturing of its ovens.

Following a successful pilot project, Miele has signed memorandums of understanding with ThyssenKrupp Steel Europe AG, Salzgitter AG and H2 Green Steel with the intent of guaranteeing the blanket use of green steel, which reduces carbon emissions by more than 66% thanks to renewable energy sources and use of scrap steel.

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ABOVE: Arçelik Ulmi washing machine plant in Romania.

BELOW: The Electrolux Ravenhall distribution centre in Victoria is a testament to the group’s commitment to the Zero Waste initiative.

Appliance Retailer December 2023 – Sustainability Report

The enamelling process, critical to the presentation of high gloss finish appliances, is an area of focus at the Electrolux Dudley Park factory. A furnace bonds the enamel finish at intense heat, which is key to achieving the desired result. After exploring alternative options, a new electrical furnace constructed in Germany is now being shipped to Australia.

Scheduled for installation and commissioning in early 2024, the furnace will be supported by the 2.2MW on-site solar array.

SUSTAINABILITY REPORT AR Earlier this year, Miele started the procurement of primary aluminium produced with 100% green electricity from hydropower. This step alone reduces Miele’s carbon footprint by more than 600 tonnes per year.

At its headquarters in Gütersloh, Germany, Miele has commissioned the installation of around 2,400PV modules, which can generate more than 750,000kWh of electricity per year. Miele also plans to use geothermal energy with the potential to save more than four million kWh of heat from fossil fuels per year.

Miele is increasing the use of recyclates in the manufacturing of its appliances. While recycled plastics were initially introduced for vacuum cleaner accessories and some tumble dryer components, Miele intends to increase the amount of recycled plastics to more than 5,000 tonnes per year by 2025.

Anker is investing in Research and Development (R&D) with a particular focus on its production processes. For example, the exterior casing of the latest Nano series charging products incorporate up to 80% post-consumer recycled plastic, verified by ISO standards, confirming that carbon emissions have been reduced by 80%.

Moving forward, Anker will continue integrating more eco-friendly materials into product designs to create high-performance products that positively contribute to the environment.

Nespresso is scaling up its investment in regenerative agriculture on coffee farms. So far, Nespresso and its partners have planted 7.4 million trees, of which 5.3 million have been for carbon removals. Nespresso is also working to reduce the use of agrochemicals such as fertilisers and instead, embedding nature-based practices.

Nespresso is also focused on energy efficiency and increasing the use of renewable energy across its operations. So far, all three Nespresso production centres in Switzerland procure 100% renewable energy.

From a product perspective, the Nespresso Vertuo Pop and Vertuo Next machines incorporate 54% and 35% of recycled materials respectively, with Nespresso coffee capsules incorporating recycled aluminium.

Panasonic is reimagining its design philosophy to prioritise extended product lifecycles, promoting modular designs for easier repair, incorporating IoT for predictive failure detection, and offering frequent functionality updates.

Within its Green Impact Plan, the company’s goals include 37 zero-carbon factories, 13 circular economy businesses, 99% factory waste recycling ratio and 90,000 tonnes of recycled resin used, all by fiscal 2025.

Over the last 12 months, Belkin has launched products with recycled plastic, and transitioned to plastic free packaging, made possible through R&D and collaboration with suppliers.

In Australia, Panasonic supports the B-cycle Scheme and contributes to the Battery Stewardship Council’s commitments.

Panasonic’s battery manufacturing plant in Thailand has been carbon neutral since 2022 and environmentally friendly battery packaging will soon be produced, starting with alkaline products.

ABOVE: Anker’s Nano series charging products incorporate up to 80% PCR plastic.

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Miele intends to increase the amount of recycled plastics to more than 5,000 tonnes per year by 2025.

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By transitioning to plastic free packaging, we’ve been able to reduce waste while increasing efficiencies on the assembly line. We’ve made every effort to eliminate plastic where we can and in other instances, incorporate recycled plastic,” Ernie Roberts said.

“We worked with one of our packaging suppliers on a solution to incorporate recycled PET. We collect water bottles, grind them down and wash them to create plastic sheets, which are then used for our screen protection trays coming from postconsumer waste, rather than a virgin plastic source.

“For our power and audio products, one of the transitions we’ve made is from plastic trays to paper trays using FSC paper. This was another engineering led project to meet structural packaging requirements without compromising on protection.” AR www.applianceretailer.com.au

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AR SUSTAINABILITY REPORT Trophies for the APCO 2023 Annual Award winners.

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AUSTRALIA’S 2025 NATIONAL PACKAGING TARGETS

n 2018, Australia established the 2025 National Packaging Targets designed to create a new sustainable pathway for managing packaging.

THE FOUR TARGETS ARE:

1. 100% of packaging being reusable, recyclable or compostable 2. 7 0% of plastic packaging being recycled or composted 3. 50% of average recycled content included in packaging 4. Phase out of single-use plastic packaging The National Packaging Targets apply to all packaging made, used and sold in Australia. The Australian Packaging Covenant Organisation (APCO) is charged with delivering these industryled targets.

A review of the 2025 National Packaging Targets conducted

by APCO in April 2023 found that while the targets are driving transformation, they are not on track to be met by 2025. The target of recycling or composting 70% of plastic packaging is presenting the biggest challenge. Barriers include cost, competitive risk, hard-to-recycle items, recycling capacity, limited access to high quality recycled content, inconsistent policy, poor data to support decision making and measure impact, as well as uncertainty about future outcomes.

For Arçelik, the transition to more sustainable packaging alternatives is not a new area of development or something purely to meet government legislation, but part of the total product stewardship value chain.

Arçelik is investing across three main areas: reducing product packaging volume and weight to produce minimum waste, carrying out reuse and recycling projects to reduce environmental impact and increasing the recycled content of packaging, eliminating Expanded Polystyrene (EPS) and choosing easily recyclable and sustainable materials.

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Appliance Retailer December 2023 – Sustainability Report

Beko ANZ will switch packaging for a range of products regardless of weight, implementing a full change for laundry and dishwasher ranges. Beko plans to start production of ANZ products including washing machines, tumble dryers, dishwasher and 60cm built-in ovens from late Q1 2024, followed by rangehoods and cooktops in Q2 2024.

Partnering with universities, research centres, and specialised suppliers, Smeg is innovating its packaging. A technical study is currently underway to gradually replace EPS inserts with recycled cardboard. At the San Girolamo plant in Italy, select appliances are packed in eco-friendly paper pulp and at the Bonferraro factory in Italy, a machine cleans, shreds, and repurposes polystyrene, reducing waste.

In 2021, Smeg recovered and resold around 100 tonnes of compressed polystyrene, a significant increase from 2020.

Ongoing packaging transformation, primarily in the SDA division, focuses on eliminating unnecessary polyethylene bags,

Nespresso coffee capsules are made from aluminum which is infinitely recyclable and used coffee grounds can be turned into compost for soil mix. Through its recycling schemes, Nespresso’s global recycling rate is 32%. In Australia, Nespresso has invested in local trials such as the Curby kerbside collection and Recycling Rewards, and is now working with other organisations towards an industry scheme.

SUSTAINABILITY REPORT AR substituting non-disposable ones with bio-based or cellulosic material, and replacing protective polypropylene layers with eco-friendly water-based paint.

BSH is committed to meeting Australia’s 2025 National Packaging Targets, continually reviewing and modifying its packaging assortment. The company has phased out EPS from all floorcare products, replacing it with more sustainable materials, and uses cardboard packaging that contains approximately 80% recycled content.

Beyond reducing plastic packaging, BSH continues to increase the recycled content of packaging and reduce plastic packaging wherever possible. The company is also moving towards a phase-out of moulded EPS. When it comes to packaging, Electrolux’s Kurt Hegvold believes there’s a conundrum of not addressing one problem and potentially creating another problem. “For example, packaging large appliances with only paper-based materials requires a lot of cardboard. We need to ensure the carbon footprint and quantity of waste generated in this process isn’t higher than with EPS,” he said.

The Electrolux Group global packaging team is working to integrate more recycled content into packaging materials without compromising protection. This includes cardboard, EPS and polyethylene film with recycled content. “Ultimately, we remain committed to finding solutions while continuing to work within government regulatory requirements.”

As an APCO member, Miele provides regular updates and transparency regarding Australia’s 2025 National Packaging Targets via publicly accessible annual reports and action plans.

While significant progress has already been made with recyclable packaging materials for small appliances such as vacuum cleaners, the effective protection of major domestic appliances poses significant challenges to minimise risk of breakage or deterioration. For most major Miele appliances, packaging predominantly consists of wood, cardboard and polyethylene film, although some EPS elements remain because of superior properties and protection.

Anker is well aware of APCO packaging requirements, as part of its commitment to align with Australia’s 2025 National Packaging Targets, identifying current products likely to still be in circulation by 2025 and ensuring 80% of these products phase out EPS by the end of 2023. This commitment extends to new products, with an EPS phase out task being incorporated into new product development.

Smeg’s eco-friendly packaging design for small appliances.

Arçelik is the first home appliance manufacturer in the world to offer a major domestic appliance line-up with EPS-free packaging including dryer, dishwasher, refrigerator, cooktop, oven, and washing machine products. These products were launched at IFA 2022 and released in Europe in Q4 2023, with plans to expand to all product ranges. Approximately 255 tonnes of 100% recycled and recyclable cardboard and 168.5 tonnes of moulded pulp were used instead of EPS. Recycled PET bottles were used in packaging strips, recycled plastic was used in accessory and product bags, and recycled shrink was used in product packaging.

Nespresso’s actions align with the objectives of parent company, Nestlé, to have 100% of packaging recyclable or reusable by 2025, and to reduce use of virgin plastics by onethird. Most packaging is recyclable and made of at least 80% recycled material. Single-use plastic has also been removed from Nespresso boutiques and replaced with reusable or recyclable cutlery, cups and bags.

Olimpia Splendid has contacted its suppliers and where possible, especially with packaging, investigating the use of paper and cardboard as an alternative to EPS. Panasonic has developed its own packaging manual to ensure new and existing packaging is evaluated and complies with sustainable goals. Panasonic has implemented a Global Environmental Management Plan worldwide, which details how recycled products will be used to create more sustainable packaging throughout its supply chain.

Panasonic is taking positive steps to meet the 2025 National Packaging Targets and phase out EPS for consumer products.

Packaging for the latest Technics turntables is free of EPS and made of cardboard, including a cardboard box for accessories.

At the APCO 2023 Annual Awards, Belkin was awarded the Best of Reporting Excellence Award and Industry Sector Award for Electronics. Earlier this year, Belkin released its first products made from at least 72% post-consumer recycled plastics (PCR) into the Australian market, becoming the first electronics company to make these products available to consumers.

“The plastic screen protection tray I referenced earlier, is made of 100% recycled plastic. APCO’s goal was to incorporate at least 30% of recycled content but we wanted to challenge ourselves to see how far we could go with it,” Ernie Roberts said.

“We’ve transitioned a lot of our packaging to paper, and we chose paper because it’s one of the most easily recyclable materials in the world – even more so than plastic in many cases.

We redesign packaging by removing all the plastic, including the film, for repulp and then we turn that paper back into pulp. We carry out testing to make sure it meets recovery requirements of recyclers, not only in Australia but globally.” AR www.applianceretailer.com.au

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Nespresso encourages customers to bring used coffee capsules to its boutiques or participating collection points.

IMPORTANCE OF CONSUMER EDUCATION

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he GfK Consumer Life report highlights the importance of education and convenience when it comes to sustainable choices. Close to one-third (30%) of survey respondents agree or somewhat agree that they would do more for the environment, but they don’t know how, with 21% suggesting they’re too busy to make their lifestyle more environmentally friendly.

When asked about sustainable consumption decisions, almost three-quarters (74%) said they recycle all or most of the time, closely followed by 69% who said they conserve energy in the home and 66% conserve water. This was followed by reducing wasteful consumption by buying only what’s needed (59%).

Arçelik strives to develop innovative technologies, enhance consumer awareness, and improve accessibility to more energy efficient products to help households decrease their environmental impact and save money.

Beyond being innovative and reliable, Arçelik believes products should also be good for health and the planet through efficient programs that save energy and water

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Appliance Retailer December 2023 – Sustainability Report

for peace of mind, design and functionality that promote wellness, and quieter operation enabling healthier living, particularly in open plan or smaller spaces.

Educating consumers about sustainable product use, empowering them to make eco-friendly choices and actively participate in conservation efforts is essential, according to Smeg. Informed consumers are more likely to choose energy efficient appliances, recycle effectively, and conserve water, which benefits the environment and saves them money. Raising awareness about sustainable practices also creates demand for eco-friendly products, prompting businesses to innovate and produce environmentally responsible goods.

Through the Robert Bosch Stiftung charitable foundation, BSH uses its profits to benefit society, the environment, and future generations in a sustainable way. The company is committed to empowering consumers with knowledge on how to use products more sustainably. By offering more energy efficient programs, consumers can save energy and money.

SUSTAINABILITY REPORT AR Electrolux Ultimate Care washing machine with AutoDose system.

Life Cycle Assessment (LCA) is a comprehensive tool used to measure and reduce the environmental impact of products throughout their life cycle. There are five stages of the LCA including raw material extraction, manufacturing, transportation, use phase and end of life with usage accumulating the highest global warming potential by far, particularly among major appliances.

Electrolux strives to create consumer awareness of long-term sustainability implications of behaviour. The Electrolux Food Foundation educates consumers about reducing food waste and campaigns such as Break the Pattern raises awareness regarding fast fashion and ways to make clothes last longer. Some product examples include the AutoDose function in the Electrolux Ultimate Care washing machine for the correct dose of laundry detergent, and AEG ProSteam technology to freshen up garments in around 25 minutes; saving water compared to a full wash cycle.

From Miele’s total global carbon emissions in the 2022 calendar year, 83% could be attributed to the use of its appliances. The company strives to encourage customers to make positive changes, be more responsible and live better lives. By supporting them with assistance programs and apps, customers can use their Miele appliances in a more sustainable way, while saving money.

Anker recognises that it is increasingly important to enlighten consumers about the environmental impact of their behaviours, with a responsibility to find smart and scalable ways to reduce the impact of its products and manufacturing processes.

Nespresso believes product information must be accessible for consumers to make informed decisions. For example, about where its coffee comes from and how it has been sourced, choosing energy efficient machines and turning them off after use, and recycling packaging such as coffee sleeves or capsules.

Olimpia Splendid believes most customers want to do what’s right by the environment and contribute to sustainability, recognising that low power consumption products can reduce their bills.

Panasonic has produced a series of videos with Australian cook and home appliance ambassador, Marion Grasby, demonstrating how its PRIME+ Edition refrigerators keep food fresher for longer and reduce food waste. Panasonic research shows that Australian households waste up to $128 million worth of refrigerated food every week – or up to $6.7 billion every year. AR

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The Electrolux Food Foundation educates consumers about reducing food waste and campaigns such as Break the Pattern raise awareness regarding fast fashion and ways to make clothes last longer.

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Bosch heat pump dryer with a 10-star energy rating.

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FOSTERING DIVERSITY, EQUITY AND INCLUSION IN THE WORKPLACE ABOVE: The Beko 100 Women Dealers project.

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he Diversity Council Australia describes diversity as the mix of people in an organisation, with inclusion relating to a workplace environment that enables that mix to work.

The benefits of a diverse and inclusive workplace are well recorded in numerous studies and move well beyond financial gains of higher cashflow, revenue and profits. These workplaces foster improved decision-making, collaboration and innovation, are better at capturing new markets and relating to a broader customer base, and also have higher retention rates with most employees rating diversity, equity and inclusion as important or very important.

Arçelik focuses on the sustainability of its workforce by providing a safe, healthy, diverse, and inclusive workplace for employees to feel engaged, included and rewarded. In 2022, a dedicated global team focusing on diversity, equity and inclusion (DEI) and a supervisory position was formed. To better understand employee expectations, a global survey specific to inclusion was conducted with 6,000 employees. Focus group interviews were held and a global DEI Committee was established to further improve the employee experience.

Arçelik has been a signatory of the WEPs (Women’s Empowerment Principles) since 2017, actively promoting gender equality among key stakeholders, raising awareness, increasing women’s employment opportunities, and supporting professional development. In cooperation with the

Appliance Retailer December 2023 – Sustainability Report

UN Women’s Generation Equality Forum, under the leadership of Koç Holding, a gender equality movement in technology and innovation was launched, supporting the Action Coalition platform and submitting commitments to achieve change for women by 2026.

Smeg believes embracing diversity enriches workplace culture, while enhancing the ability to innovate and thrive. The company continually evolves to create a workplace where everyone can contribute and succeed. In a diverse environment, employees bring a wide array of perspectives, experiences, and ideas to fuel creativity and innovation. Different backgrounds and viewpoints challenge the status quo and approach problems from various angles.

Electrolux maintains a determined focus on diversity, inclusion and equity, seeking ways to create equity in areas such as age, race, religion and education right from the recruitment stage. For several years, Electrolux has championed employeeled diversity and inclusive initiatives through the WE program with a variety of activities that foster a better understanding of people in the workplace.

For example, having employees who’ve relocated to Australia provide talks on what makes their homeland unique are considered fun, but also important in developing cultural awareness.

Miele has more than 23,000 employees and as a family-owned company, mutual esteem and respect is particularly important. Miele’s 2022 International Diversity Week, held at various

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Arçelik designed The Beko 100 Women Dealers project, supporting women’s economic empowerment and strengthening their role in business and society. As part of the project, women entrepreneurs are empowered through training on finance, product and sales, and mentorship activities, alongside assistance for finding store locations, decoration, and rent support, a free cash register obtained from TOKEN financial technologies, and extra display package discounts.

company locations, consisted of presentations and workshops on diversity, inclusion and putting a stop to prejudice. In the same year, the international LGBTIQ network, ‘Queer & Mie’ was established, allowing lesbian, gay, bisexual and transgender employees to exchange experiences and provide support to one another.

Nespresso’s goal is to create a thriving team culture which champions DEI. Its action plan is designed to provide equal opportunities for everyone to contribute, grow and feel valued. This includes equal access to opportunities, career advancement, support and rewards through four key focus areas.

The first area is gender balance, which encompasses unconscious bias training, paid parental leave, flexible work policies, mentoring and championing equal pay. The second area is people with disabilities and creating a workspace where they

TOP: Arçelik female forklift driver.

ABOVE: Arçelik female robot operator.

can connect, learn and thrive. The third area is race and ethnicity, increasing understanding, value and recognition of Aboriginal and Torres Strait Islander cultures, histories, knowledge and rights. The fourth area is LGBTIQ+ and creating a workplace where individuals are treated with dignity and respect regardless of sexual preference or gender.

A diverse group of staff members work at Olimpia Splendid. Management runs a flat structure and encourages opinions from all staff members via a suggestion box where contribution is rewarded. All staff are also included in open forum style meetings.

At a global level, Panasonic has set out its own definition of DEI based on its management philosophy. Panasonic defines diversity as embracing and respecting the individuality of each person who accepts challenges and finding value in individual differences. Equity is defined as delivering fairness and providing opportunities for those who accept challenges, creating a workplace where everyone is treated fairly. Panasonic defines inclusion as the cultivation of an environment where each person who accepts challenges can value their own individuality, with the aim to build an inclusive culture.

Belkin describes itself as a people-first organisation with a Diversity, Inclusion and Belonging (DIB) group, responsible for creating employee resource groups called ‘vibes’; a safe space for people from different backgrounds to collaborate and receive mentorship, from women’s network groups to black excellence in tech. The fundamental approach for anything in Belkin is diversity of thought, ideas and solutions; a concept that has been in Belkin’s DNA since conception. AR www.applianceretailer.com.au

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AR SUSTAINABILITY REPORT

Winning Group head of sustainable business and corporate social responsibility, Alice Kuepper.

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WINNING GROUP EXPLAINS SUSTAINABILITY STRATEGY

he Winning Group published its inaugural Sustainability Progress Report in June 2023, recognising the role of awareness and education in influencing behaviours and driving more conscious decision making.

“Our commitment to sustainability sits at the core of our business, within our mission to create the best experience in the world, for the world – for our people, our customers, our communities and the planet,” Winning Group head of sustainable business and corporate social responsibility, Alice Kuepper told Appliance Retailer.

“Our sustainability strategy contributes to the UN’s SDGs, in particular goals 7, 8, 9 and 12, and helped form our four main pillars: community, awareness and education, responsible sourcing and environment (CARE Framework). Our sustainability team is dedicated to driving initiatives aligned with our CARE framework and company mission.”

DEVELOPING A CARBON EMISSIONS FOOTPRINT

The first step in managing its carbon emissions was to develop an understanding of its carbon impact.

At the start of 2021, Winning Group engaged an environmental consultancy to develop its first carbon emissions footprint.

“From there, we were able to calculate operational greenhouse gas emissions (Scope 1 and 2) such as those resulting from the use of electricity and fuels. Where possible, all data analysis complied with requirements of the Greenhouse Gas Protocol Accounting and Reporting Standard,” Kuepper said.

“We also want to develop an understanding of emissions across our entire value chain. We are estimating 16

Appliance Retailer December 2023 – Sustainability Report

Scope 3 emissions, understanding the ‘use of sold products’ as the dominant source, associated with manufacturing energy, use phase and end-of-life treatment.

“Winning Appliances is part of the National Australian Built Environment Rating System (NABERS) advisory panel and accelerate program for our showrooms, developing a solar feasibility case study. Having a way to measure and manage energy consumption means that we can chart a path towards a more sustainable future.”

DIVERTING PACKAGING WASTE FROM LANDFILL

The Winning Group has been pioneering whitegoods take-back and recycling schemes since 2005. However, a renewed focus on systems, processes, governance and investment into recycling was identified as an opportunity. At the start of 2021, Winning Services ran a Bin Trim waste assessment of packaging waste and applied for the EPA Bin Trim rebate.

“We were then able to secure an EPS densifier, enabling our NSW operation to densify large volumes of EPS by melting it into nuggets. On the back of implementation in NSW, the Winning Group launched a recycling program for packaging waste associated with products such as cardboard packaging, EPS and soft plastics. The program is free for customers and helps tackle EPS, preventing it from going into landfill,” Kuepper explained.

“On average, we are achieving up to 80% diversion from landfill of customer packaging and recycling 100% of the EPS. With this program, Winning Group is supporting Australia’s National Packaging Targets and demonstrating accelerated progress in voluntary stewardship of packaging waste.”

SUSTAINABILITY REPORT AR

CONSUMER EDUCATION PRE- AND POST-PURCHASE

To determine its approach to sustainability, the Winning Group conducted a review of material, social and environmental issues, identifying customer education and awareness as an opportunity for positive impact.

In 2021, a survey of 22,000 customers revealed that 86% are interested in seeing more sustainable product options.

In late 2022, Appliances Online introduced new efficient product rows, highlighting water and energy efficient products in laundry, refrigeration and dishwasher categories – an industry-first initiative.

“These rows are designed to highlight efficient products to help our customers make informed purchasing decisions and reduce their environmental impact. We continue to expand our efficient rows, which now also include TVs and air conditioners,” Kuepper said.

“We also launched our Maintain Campaign, which educates customers on how to care for and implement practices to maximise the lifespan of their new products. Approximately three months after purchase, customers are sent tips and tricks on how to get the most out of the appliances they purchased.”

LOOKING AHEAD

In 2024, the Winning Group will focus on carbon management in line with its sustainability strategy and incoming requirements to report climate related financial risks and opportunities.

“From a waste and recycling perspective, we will further improve our landfill diversion across stores and DCs, implementing circular initiatives. We will continue our Responsible Sourcing Roadmap with a focus on increasing supply chain visibility through our Modern Slavery SelfAssessment Questionnaire.

“We will continue our partnerships with Good360 Australia and Inner Circle participation, alongside our support of Dignity Homelessness, as well as maturing our reconciliation journey by working through our Innovate RAP framework.

We will share our learnings and invest in maturing our efforts through industry partnerships and collaboration.” AR

The ‘Green Divide’ – how to target different customer cohorts Sustainability means different things to different people, with recent research from leading consumer intelligence company, NIQ, showing divisiveness on this topic, with Australians at different stages of understanding and action orientation.

NIQ believes an understanding of these different cohorts is helpful to determine which groups should be targeted. How much information are they seeking?

What claims will resonate best? How can less motivated consumers be encouraged to take greater action?

As part of NIQ’s program of research on sustainability, a segmentation exercise was undertaken, to understand mindsets, attitudes and behavioural patterns that influence how consumers think and behave differently, and then identify the leaders versus the laggards.

The segmentation exercise uncovered a clear polarisation in Australia when it comes to sustainability, with five distinct groups.

1

Skeptics – This group accounts for close to one-third of the population (31%). They are skeptical on the topic of sustainability and are likely to be climate change deniers. It’s not a priority for them and they are distrustful of claims and efforts.

2

Idealists – This group is passionate about sustainability but struggles to put it into practice.

Accounting for less than one in 10 (9%) Australians, they are often motivated by events or other people, while trusting all groups are trying to progress sustainability.

3

Minimalists – Defined by a basic awareness of sustainability but little motivation to make change, the group with 26% share of the population is mostly focused on pollution and resource protection. Cost is the major barrier to more sustainable living.

4

Healthy ‘me’ & ‘planet’ – Resonating with just 9% of the population, this group is focused on their own personal health needs and health benefits of a greener planet.

5

Evangelists – At the other extreme of Skeptics, accounting for more than one-quarter of the population (26%), Evangelists put great importance on sustainability and are taking actions to live more sustainably – in fact, they take more than 10 actions on a regular basis to be more sustainable on a personal level. They are spurred to action for the good of all, thinking beyond the here and now to the need to work collectively for the sake of future generations.

www.applianceretailer.com.au

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AR SUSTAINABILITY REPORT Miele co-owners, Dr Markus Miele and Dr Reinhard Zinkann.

Miele co-owners see sustainability as a perfect fit for

LONGEVITY-FOCUSED BRAND

M

iele co-owner, Dr Markus Miele has committed the company to working on sustainability platforms as it aligns with the values of the brand.

Speaking with Appliance Retailer during his recent visit to Sydney, Miele said the 20-year commitment to retailers and consumers continues to represent a key element of its sustainability message.

“Sustainability fits perfectly with the Miele brand. We test our appliances to last 20 years and for us longevity is the ultimate element of our sustainability message. We see sustainability is not only a societal trend, as appliance customers also want to know how much carbon we are using as well as the alternatives to styrofoam packaging.

We use a different type of composition to ship products around the world such as Australia.

“The carbon footprint of making our machines is only one part of the discussion, as 83% of the carbon over the lifespan of a product is generated in the usage phase. This is why we have created a consumption dashboard within the Miele app to advise how much water and energy is used during the most recent cycle to help encourage consumers to use features such as the eco program more frequently.

“Our research has shown consumers only use the eco program on dishwashers 25% of the time and when it comes to washing machines – this is only 5% of the time. Unfortunately there is still a belief that longer programs use more energy and this is simply not true.

We don’t expect consumers to use these energy-saving programs all of the time, but let’s try and increase the 5% to 10% and the 25% to 30% – it helps the climate and the consumer’s wallet.

“Great retailers understand what consumers want from their appliances and they are able to understand these needs when selling appropriate products - whether it is longevity or energy saving options as well as features such as TwinDos that helps reduce waste in other ways by managing the detergent needed to clean clothes.”

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Appliance Retailer December 2023 – Sustainability Report

In a recent interview with Appliance Retailer, Miele co-owner, Dr Reinhard Zinkann reiterated that the key market trend continues to be sustainability.

“Sustainability and especially energy efficiency are important to our customers. Networked household appliances will continue to be a mega-trend in the coming years, and we have added many new applications to our smart home portfolio in recent years, which could also be combined with sustainability.

“For example, we see further potential in energy management through networking applications. Our home appliances are able to start automatically when the home’s own PV system supplies sufficient solar power.

The new Consumption Dashboard in our Miele app offers full transparency regarding energy consumption on washing machines and dishwashers. This provides customers with sound tips on how to use their appliances even more sustainably and efficiently.

“Our IFA booth this year is a good example – it is 80% recycled by using materials from last year’s exhibition – not because we didn’t change things – but because we stored these materials and re-used them by remodelling the stand this year. Sustainability has to be lived and we need to take our share of responsibility through leading by example.

“Our new dust bags HyClean Pure, announced at IFA, are 80% produced from recyclable material and, as far as we know, we are the only ones that have taken the time to make that enormous step possible. Even though dust bags will never be an exciting product, it is a clear example of sustainability and what is possible.

“Our job is to do the best we can and stay consistent in our efforts. This means giving the best service and best products to our consumers in the sense of keeping our brand promise ‘Immer Besser’. We will continue to be focused on sustainability and technology, as well as design. There will always be people who want value and not only price. Price is soon forgotten, value remains.

Our goal is always long-term value.” AR

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FOCUS AREAS FOR

2024 ANKER

• Minimising the use of plastic in product packaging with a goal to transition towards a plastic-free packaging model.

• Actively exploring ESG partnerships with the goal to achieve 100% plasticfree packaging by 2027.

ARÇELIK

• Decarbonisation – building on the 25,964 tonnes of carbon emissions and 309,592 GJ of energy saved since 2019.

• New technologies and solutions to produce energy and water efficient products using natural resources and include more recycled and alternative raw materials.

BELKIN

• Continue to address Scope 1 and Scope 2 emissions in line with 2025 goals.

• Building energy efficiencies in facilities and wider operations, like the Leadership in Energy and Environmental Design (LEED) certified building at the company’s headquarters.

• Assessment and audit of the supply chain to reduce Scope 3 emissions.

BSH

• Understanding repairs can be a more sustainable choice than replacing an entire appliance, BSH is extending

spare parts availability for appliances produced after January 1, 2023. For major appliances, spare parts will be available for 15 years (previously 10 years), and for small appliances, availability will be extended to 10 years (previously seven years).

• Increasing recycled content within appliances and packaging, as well as reducing energy in the manufacturing process and when sourcing components.

ELECTROLUX

• The commissioning of an electric furnace for the appliance enamelling process at the Dudley Park, South Australia factory.

• Construction of a new 6-star Green Energy rated distribution centre in Brisbane, Queensland.

• Ongoing investigation of alternative energy sources in line with the shift away from gas.

MIELE

• Supporting customers in reducing emissions during the usage phase by maximising the number of connected Miele appliances around the world.

• Ongoing evaluation of additional solar installations and greater electrification of local vehicle fleet.

NESPRESSO

• Advancing regenerative agricultural practices to restore landscapes and expand solutions that build resilient communities and transform livelihoods.

• Endorsing circular principles where end-of-life materials are considered resources.

• Planting a further 36,000 trees with Greening Australia, driving further engagement with recycling programs, and supporting community causes.

OLIMPIA SPLENDID

• Transforming packaging in line with APCO guidelines and government regulations.

PANASONIC

• Partnership with Reclaim Energy for the local launch of a carbon hot water heat pump solution as a cost-effective alternative to gas and electric hot water heating.

• Accelerating activities like the recent fuel cell trial in Western Australia to convert hydrogen to electricity.

SMEG

• Further use of Tritan Renew, a premium recycled co-polyester material, to replace plastic components in Smeg small appliances.

CONTRIBUTORS

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We’ve been named the most sustainable home appliance company in the world*

We’re taking real actions because healthy living is only possible on a healthy planet.

Find out more on beko.com/au-en/sustainability

*based on Corporate Knights 2023 Global 100 Most Sustainable Corporations list ** Source Euromonitor International Limited; Large Appliances as per “Major Appliances” in Consumer Appliances 2023ed, retail volume, 2022 data