Electrolux Secures $209M for R&D

New EU-backed loan will finance ‘advanced appliances’

YSN Staff 

Electrolux Group has signed a $208.6 million loan agreement with the European Investment Bank (EIB), the lending arm of the European Union, to fund the research and development of next-gen home appliances. 

Electrolux said the financing will allow it to develop “advanced appliances” for food preparation, food preservation, fabric care and dish care, while also enhancing digital technologies across all product platforms. The cash infusion will support the company’s efforts toward improving its products’ performance, user-friendliness and user experience, while also reducing energy consumption and resource use. 

Electrolux believes research, innovation and digitalization are “crucial for sustainability,” as home appliance usage accounts for about 85% of the products’ total carbon-dioxide lifecycle emissions. 

“The support Electrolux Group receives from EIB is important in our work to achieving our second science-based climate target, which was approved by the Science Based Targets Initiative [SBTi] after we had achieved the first target three years ahead of time,” said Elena Breda, chief technology and sustainability officer. “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.” 

The Science Based Targets initiative was established in 2015 to help corporations set emission reduction targets in line with climate sciences and Paris Agreement goals, and is funded by IKEA Foundation, Amazon, Bezos Earth Fund, Rockefeller Brothers Fund and UPS Foundation, among others. 

The EIB loan is backed by InvestEU, a European Union initiative that’s looking to generate $388 billion in private investments to back sustainable initiatives by 2027. 

The new EIB loan is the fifth transaction between the EIB and Electrolux Group, extending a relationship that dates back to 1989. 

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