EIB Lends €200M to Electrolux to Develop Energy-Efficient Household Appliances

Electrolux Group plans to use the financing to develop cutting-edge household appliances aimed at improving sustainability and energy efficiency.

The European Investment Bank (EIB) has announced a €200 million loan to Sweden-based Electrolux Group, a global leader in household appliances, to support the development of more environmentally friendly consumer goods. The loan will fund green-focused research, development, and innovation (RDI) activities across several European countries, including Italy, Sweden, Germany, Poland, and Romania.

Electrolux Group plans to use the financing to develop cutting-edge household appliances aimed at improving sustainability and energy efficiency. The research will focus on innovations for food preparation, food preservation, fabric care, and dish care, while also integrating advanced digital technologies across all product platforms. These efforts will significantly reduce energy consumption and resource use, while enhancing user experience and performance in a range of household appliances.

The RDI work is expected to be completed by 2026, with the majority of the research and development activities taking place at Electrolux Group’s facility in the northeastern Italian province of Pordenone. The project is aligned with the European Union's sustainability goals and backed by InvestEU, a programme designed to unlock €372 billion in investments across Europe by 2027.

EIB's Commitment to Sustainability and Innovation

EIB Vice-President Gelsomina Vigliotti emphasized the importance of this partnership in advancing Europe’s sustainability efforts, stating, “This agreement highlights our commitment to fostering innovation and sustainability in Europe’s leading industries. Reducing energy consumption and enhancing the sustainability of home appliances are crucial steps towards a greener future.”

In addition, EIB Vice-President Thomas Östros noted that the loan strengthens Electrolux’s role in driving the green transition. “Electrolux has a long history of being a leader in the household appliance industry, based on innovation, sustainability, and quality,” Östros said. “Through this loan, we continue to support Electrolux in strengthening Europe’s competitiveness and contributing to a more sustainable future for both businesses and consumers.”

Focus on Sustainability in Household Appliances

Electrolux Group's commitment to sustainability is evident in its focus on reducing the environmental impact of its products. Household appliances are responsible for approximately 85% of their total carbon-dioxide lifecycle emissions, making RDI in this sector crucial for achieving broader climate goals. The company aims to further integrate sustainability into its product development processes, enhancing efficiency and minimizing resource consumption.

Elena Breda, Chief Technology and Sustainability Officer at Electrolux Group, highlighted the importance of the EIB loan in supporting the company’s ambitious climate targets. “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,” Breda said. “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.”

Strengthening the Long-Term Relationship

The new loan is part of a long-standing partnership between the EIB and Electrolux Group, marking the fifth financial operation between the two since their first collaboration in 1989. This continued partnership underscores the EIB’s commitment to supporting European businesses that are driving innovation and sustainability.

With the additional funding, Electrolux aims to further its green transition and contribute to a more sustainable, energy-efficient future in the household appliance sector.