European household appliance maker Electrolux Group gets €200 million EIB loan for greener goods

• EIB lends Electrolux Group €200 million to develop energy-efficient household appliances.
• Stepped-up company research planned in Italy, Sweden, Germany, Poland and Romania.
• EIB credit advances European environmental-sustainability and digital goals.

The European Investment Bank (EIB) is lending €200 million to Sweden-based Electrolux Group, a leading manufacturer of household appliances, to forge a range of more environmentally friendly consumer goods. Electrolux Group will use the EIB credit for green-focused research, development and innovation (RDI) activities in Italy, Sweden, Germany, Poland, and Romania.

The financing will enable Electrolux Group to develop advanced appliances for food preparation, food preservation, fabric care, and dish care, while also enhancing digital technologies across all product platforms. This support will back the Group's pioneering research aimed at improving performance, user-friendliness, and user experience, as well as reducing energy consumption and resource use for a variety of household goods.

The RDI is due to be completed by 2026, with most of the work carried out at Electrolux Group facilities in the northeastern Italian province of Pordenone. The EIB loan is backed by the InvestEU, the programme of the European Union that aims to mobilise over €372 billion of extra investments by 2027.

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

"Electrolux has a long history of being a leader in the household appliance industry, based on innovation, sustainability and quality," said EIB Vice-President Thomas Östros. "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."

Household-appliance research, innovation and digitalisation are crucial for sustainability because use of such goods accounts for around 85% of their 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 after we had achieved the first target three years ahead of time. Our focus 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,” said Elena Breda, Chief Technology and Sustainability Officer, Electrolux Group.

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

Background information

About the EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs. In Italy, the EIB Group provided €58 billion in financing for projects in Italy in the past five years.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards. 

About InvestEU

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps to crowd in private investment for the European Union's strategic priorities such as the European Green Deal and the digital transition. InvestEU brings all EU financial instruments previously available for supporting investments within the European Union together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

About Electrolux Group

Electrolux Group is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent taste, care and wellbeing experiences for millions of people, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our group of leading appliance brands, including Electrolux, AEG and Frigidaire, we sell 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.