FEATURE
Sustainability PRODUCTS | PACKAGING | PRIORITIES
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Beko reflects on significant progress in sustainability journey Sustainability is a core pillar of the Beko business, reflected in its 2025 Integrated Report released in July this year, which confirmed that its SBTi-validated Net Zero by 2050 commitment is ahead of schedule. Progress is measured by absolute Scope 1 and 2 emissions reductions, tracked against the company’s 2022 baseline and verified annually by independent third parties aligned with the SBTi methodology.
THE HIGHLIGHTS IN NUMBERS
• 46% reduction in Scope 1 and 2 emissions against the 2022 baseline, already surpassing the 42% target set for 2030. • 63.5% of Beko’s manufacturing is powered by green electricity with a target of 100% green electricity in manufacturing by 2030. • 28,997 tonne reduction in the use of raw material and 31,665 tonnes of recycled plastics incorporated into Beko products.
• 148,862 appliances were refurbished for resale, all while maintaining a 99.6% waste diversion rate from landfill. • US$100 million sustainability-linked loan secured from the International Finance Corporation (a member of the World Bank Group) to accelerate green manufacturing. • TRY 9.8 billion (A$280 million) of total R&D expenditure with 28 R&D centres across 12 countries driving the next generation of sustainable technologies. • 48.3% of total revenue now comes from energyefficient products. “Our sustainability roadmap is built on science-based, time-bound targets that leave no room for ambiguity. Over the next 12 months, our priorities centre on three pillars: decarbonising operations, scaling product-level impact and embedding sustainability across the value chain,” Beko Australia and New Zealand managing director, Jim Kalotheos said. “In 2025, almost two-thirds (63.8%) of our products sold by unit count were classified as energy-efficient; that’s down from 76.3% in 2024. This shift reflects a deliberate decision to raise the minimum energy efficiency threshold we use to classify products, setting
#1 in our industry
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We need to simplify the sustainability landscape, which is cluttered with labels, ratings, and claims that can overwhelm rather than empower.
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– Jim Kalotheos, Beko.
a higher bar that better reflects genuine bestin-class performance. Our focus is on increasing this share under the stricter methodology, while accelerating the integration of recycled and biobased materials across all product lines.” Beko is also advancing Digital Product Passport readiness through the company’s involvement in the EU-backed CIRPASS-2 (Digital Product Passports Enabling At-Scale and Real-Life Circular Economy Use Cases) and ENCIRCLE (Enabling Circular Value Chains via Production Digitisation and Human Empowerment) Horizon Europe projects. “We currently have 222 suppliers with environmental targets, and we are expanding our Supplier Sustainability Program to bring more partners on board. We will continue deepening engagement through supplier audits, training, and incentive structures, measured by the percentage of strategic suppliers with verified environmental and social targets.”
FOUR KEY TRENDS SHAPE SUSTAINABLE PURCHASE BEHAVIOUR
Beko’s Smart Living Index, an annual study spanning 12 countries and 6,000 consumers, gives the company a real-time view of how sustainability is shaping purchasing behaviour, with four key trends standing out. 1. Energy efficiency is now non-negotiable: Rising energy costs have made it the single most influential purchase driver. Consumers see highefficiency products as a financial necessity, not a premium choice. 2. Durability and repairability are rising fast: Consumers increasingly expect appliances to last longer and be easier to repair. The EU’s Right to Repair agenda has accelerated this, especially across European markets.
ABOVE: For Ankara, Beko deployed 35+ internally developed digital solutions, integrated through its IoT platform, FLOW. The results reported include a 46% reduction in time-to-market.
3. Trust and transparency are becoming differentiators: Fewer than 20% of European consumers trust AI-enabled appliance features. Across markets, people want clear, substantiated claims, not slogans. 4. ‘Green premium’ perception persists: In 8 of 12 markets, cost remains the biggest barrier to sustainable purchasing. Consumers want to do the right thing, but need proof it’s also the smart financial choice, making total cost of ownership messaging increasingly critical. “The problem is not the economics; it is that the message is not landing at the point of sale. Too often, the conversation stops at the sticker price. This is where manufacturers and retailers must work together. We need to shift the conversation to total cost of ownership, equipping retail teams with the tools and training to articulate lifetime savings confidently,” Kalotheos said. “We also need to simplify the sustainability landscape, which is cluttered with labels, ratings, and claims that can overwhelm rather than empower. Standardised, easy-to-compare metrics like annualised running costs make the sustainable choice the obvious choice. “Underpinning all of this is trust. Consumers are rightly sceptical of greenwashing, which is why manufacturers and retailers need to come together to agree on clear, consistent, and verified sustainability messaging. When the entire industry speaks with one credible voice, consumers can make informed choices with confidence, and everybody wins, including the planet.” →
ow Our parent company ranks #89 in TIME's Most Sustainable Companies, 2026. *Based on TIME and Statista's World's Most Sustainable Companies of 2026 List.
Find out more on bekocorporate.com
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PRODUCT LIFECYCLE APPROACH
When asked about product longevity, repairability, recyclability and end-of-life management, Beko said it takes a full product lifecycle approach, from the drawing board to the moment a product is recycled into something new. “Our products are engineered for durability, with a 36% improvement in Service Call Rate over five years, supported by 7,100 authorised service centres across 59 countries and AI-powered diagnostics tools like SmartFix that boost firsttime fix rates. We design with modularity in mind, making components easier to access and replace,” Kalotheos explained. Recyclability is built into every product Beko makes including 99% for washing machines and refrigerators, and 98% for tumble dryers. The company also conducts Life Cycle Assessments across categories to continuously improve. “At end-of-life, we have recycled nearly two million WEEE units since 2014 and refurbished 148,862 products in 2025 alone. Digital Product Passports, which we are co-developing through EUbacked projects, will soon give recyclers the data they need to maximise material recovery. “The greatest opportunity lies in scaling takeback and refurbishment infrastructure beyond Europe. In Australia, Beko is a proud member of COFOSS (Coalition for Sustainable Solutions), which enables manufacturers and retailers to collaborate on systems needed here in Australia to create a truly circular loop, one that benefits consumers, the environment, and business alike.” Beko’s Reliability campaign, now in its second year, leads with the message ‘We stress test our appliances so you can be stress-free’, supported by category-specific point of sale materials that make durability visible at the shelf. “We communicate clear, substantiated claims across every category. For example, EnergySpin technology in Beko washing machines saves up to 15% energy and bigger savings on water, Beko heat pump dryers achieve 9- and 10-star energy ratings,
Automation, AI, robotics and IoT power high-volume production at Beko’s WEF Global Lighthouse Refrigerator Plant in Eskişehir, Turkey.
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Beko dishwashers offer the highest energy and water ratings in their price bracket, and Beko AeroPerfect ovens cook faster with less energy. These are not vague promises, they are measurable, comparable, and meaningful to consumers in store,” Kalotheos said. For retail teams, Beko invests in both online training and face-to-face in-store programs. “We back this up with a standard five-year warranty on registration across all major domestic appliances, better specifications than competitors at the same price point, and our ongoing EPS-free packaging rollout, which benefits consumers, retailers, and the environment alike.”
EU REGULATIONS TO DRIVE FUTURE SUSTAINABILITY DEVELOPMENTS
Beko sees several converging forces that will reshape the industry, mainly being driven out of the EU, including Digital Product Passports, AI and IoT to unlock even further efficiency gains, heat pump technology, circular economy regulation and increasing consumer expectations. “EU’s regulatory push for Digital Product Passports, which we are actively co-developing through the CIRPASS-2 and ENCIRCLE Horizon Europe projects, will bring unprecedented transparency to the appliance lifecycle. Within two to three years, consumers and retailers will be able to scan a product and access its full environmental footprint, repairability score, recycled content percentage, and expected lifetime. “Technologies like our AdaptiveCool (which delivers up to 20% energy savings through AI-driven cooling optimisation), EnergySpin (15% energy savings in laundry), are just the beginning. As connected appliances become the standard, real-time optimisation of energy and water use will deliver savings that static efficiency ratings cannot capture. “Our Heat Pump Dishwasher, a TIME Best Invention of 2025, represents a step-change in what is possible. Heat pump technology, already established in tumble dryers, is set to expand across dishwashers and other categories, slashing energy consumption by up to 50% compared to conventional models. “EU regulations being introduced including the Right to Repair, Ecodesign for Sustainable Products Regulation (ESPR), and extended producer responsibility frameworks will raise the bar for all manufacturers. Those who have already invested in design for disassembly, recycled materials, and refurbishment infrastructure, as we have, will lead the market. “Our research shows that younger consumers in particular are not waiting for legislation. They expect brands to lead on sustainability, and they are willing to switch to those that do. Over the next two to three years, sustainability will shift from a differentiator to a baseline expectation, and the brands that recognised this early will earn lasting loyalty. “At Beko, we are not waiting for the future to arrive. With 4,500+ patents, 28 R&D centres, and a deep commitment to making sustainable living accessible in every home, we are building it, one innovation at a time.” AR
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The ConnectLife app brings the Hisense range and other compatible devices into one dashboard, giving customers greater transparency over their household appliances.
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Hisense champions greater accessibility and transparency
isense is constantly looking at how it can refine processes to build sustainable and real efficiency into its entire customer offering, from sourcing materials and product development to packaging for delivery. In 2026, a key priority for Hisense has been making household sustainability more accessible and seamless for customers. “In our product range, this has included continued improvements in energy and water efficiency, alongside premium features such as Auto Dosing that take the guesswork out of everyday chores and smart processes that can streamline and schedule household routines,” Hisense Australia general manager of marketing, Michelle Wee said. “Our ConnectLife smart home app has played a central role in this approach, bringing the Hisense range and other compatible devices into one dashboard, giving customers greater transparency over their household appliances.” Hisense has observed sustainability and connectivity become increasingly important factors when customers purchase new appliances, adding to the traditional considerations for performance, design and value. “This trend highlights how customers are increasingly choosing products that align with their own values, while simultaneously helping simplify their everyday routines. Our team is committed to developing and delivering products and features that are intuitively sustainable, leading the industry in efficiency standards and ultimately showcasing how Hisense has designed its product range for real life, taking the complexity out of chores and giving customers time back to focus on the moments that matter.” Hisense is committed to supporting customers in product maintenance with a dedicated service team based in Australia equipped to help diagnose, reassure and solve product related issues. “Our team works closely with our retail partners and technicians to ensure customers receive the best service and that products continue to meet their expectations. We also
remain focused on reducing the environmental impact of our products through more sustainable materials and packaging that minimises waste.” The challenge of clearly communicating sustainability claims, translating them into practical benefits and overcoming misconceptions, has slowed the adoption of more sustainable appliances, according to Hisense, which believes both manufacturers and retailers have an important role in helping customers navigate, particularly on the shop floor. “Manufacturers need to equip store staff with the training required to translate energy and water efficiency information into clear, relevant benefits,” Wee said. “We invest in point-of-sale displays and training programs to ensure key themes are best conveyed on the shop floor and retail partners are best equipped to handle customer concerns, bust misconceptions and showcase how sustainability is no longer a luxury feature. “For Hisense, proving sustainability doesn’t stop at the sale, it is something that we continue to reinforce through our ConnectLife platform, to continue demonstrating the impact our appliances are having on customer lives and fostering sustainable habits.” In the coming years, Hisense expects sustainability features to become an established expectation in all everyday appliance offerings. Smarter technology will become the standard, rather than a novelty, as households demand greater control and transparency over their appliances, while finding new ways to intuitively streamline everyday processes and better meet the needs of real life. “Connected platforms such as our ConnectLife app will play an important role in this shift. In addition, AI and continued investment in R&D will create even more opportunities to optimise appliance processes and performance around individual household needs, helping make sustainability simpler and more integrated into everyday life.” AR www.applianceretailer.com.au
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V-ZUG pilots washing machine project based on remanufacturing
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-ZUG is taking the next step towards a circular economy with the Adora Circular Edition. The environmental impact of the materials used in the Adora Circular Edition is reduced by almost 50%, as the first washing machine consisting of more than 30 reused parts. The project shows how existing production structures can be used to conserve resources and keep materials in circulation for longer, without compromising on quality or functionality. In March 2026, V-ZUG produced the first 10 Adora Circular Edition models as a pilot series. The washing machine is based on the principle of remanufacturing. Used washing machines are taken back, dismantled and their components are carefully inspected, cleaned, prepared for reuse and reassembled. This results in an appliance made mostly of used components, but functionally equivalent to a new appliance. Components that are not subject to heavy wear or do not come into contact with water, such as housing parts or covers, are particularly well-suited for reuse. Critical components, such as electronics or water-bearing parts, are systematically replaced with new parts. The appliances are assembled on the same line and under the same conditions as standard appliances. Although used components are installed, the same quality standards apply to the Adora Circular Edition as to new appliances. “Our goal is to keep materials in the cycle and in the highest quality for as long as possible. By reusing components, the environmental impact of the parts used can be significantly reduced – by almost half in the case of the Adora Circular Edition,” V-ZUG head of sustainability, Marcel Niederberger said.
With the inauguration of the first methane pyrolysis plant on the V-ZUG production site in Zug, the Swiss industry is sending a strong signal on the path to net zero.
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V-ZUG has produced the first 10 Adora Circular Edition washing machines based on the principle of remanufacturing. Used washing machines are taken back, dismantled and their components are carefully inspected, cleaned, prepared for reuse and reassembled.
In terms of decarbonisation, V-ZUG continues to electrify its own vehicle fleet of approximately 350 service vans and 15 trucks. In the meantime, V-ZUG has introduced a new kind of fuel type – Hydrotreated Vegetable Oil (HVO) 100% Renewable Diesel – for the remaining fleet, before electrifying it. “This is an important step to reduce our CO2 emissions in Scope 1.” V-ZUG continues its 2020-2030 roadmap with several targets within the company’s four focus topics. The first is ‘Products and services for a future fit society’ with several targets to increase energy efficiency and apply circular economy principles. The second is ‘Resilient and committed employees’ with several targets around health and safety, education, inclusion and diversity. The third is ‘Environment and climate protection’ with a target to reduce CO2 emissions Scope 1 and Scope 2 by 80% and Scope 3 by 30% through improved energy efficiency and waste treatment. The fourth is ‘Entrepreneurship for sustainable prosperity’ with several targets around earnings, growth and suppliers. In 2025, V-ZUG introduced Product Lifecycle Analysis reflecting its total environmental footprint, and now publishes Product Sustainability Reports (PSR) across all products. “Additionally, we want to push the communication around circular economy because material matters, not just energy and water consumption, and there are more R-Strategies beyond Repair and Recycle,” Niederberger said. “Moving forward, we see potential in further reducing our environmental footprint, strengthening partnerships, new business models and increasing resilience by reducing raw material dependency.” V-ZUG manages CO2 emissions by preventing, reducing and offsetting. An example is its internal CO2 levy taxes (120 CHF (A$206/tCO2) emissions, which both incentivises, and finances, efforts to reduce them. The effect of such initiative is that production is now CO2 neutral (Scope 1 and 2 according to Greenhouse Gas Protocol) and has been since 2020. AR
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Electrolux Group emphasises real-world impact of sustainability claims ABOVE: The Electrolux Brisbane Distribution Centre has been certified 6-star Green Star by the Green Building Council of Australia.
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lectrolux Group continually brings improvement to its sustainability initiatives and goals every year. The Electrolux Brisbane Distribution Centre was certified 6-star Green Star in August 2026 by the Green Building Council of Australia; the second of the group’s sites to achieve this recognition following from Ravenhall, Victoria. “This recognition reflects years of planning, innovation and collaboration and our drive to create more resource-efficient operations and workspaces for our employees,” Electrolux Australia and New Zealand managing director, Kurt Hegvold said. “What makes me proudest is that our people, the Port of Brisbane and McNab set a benchmark the industry can now follow. Alongside our other 6-Star facility in Melbourne and our Adelaide plant, where we’ve installed the group’s first electric furnace, it shows what our commitment looks like in practice in Australia.” In 2025, the group conducted a comprehensive review of its ‘For the Better’ program to ensure sustainability continues to drive impact, differentiation, and competitiveness. The updated framework will be launched later in 2026. “The core pillars of the framework are unchanged, and the foundation remains to protect people, the planet, our business, and our reputation. Electrolux
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Group achieved its first Science-Based Targets (SBTi) in 2022, three years ahead of plan, and continues to advance its climate leadership through second SBTi targets, aligned with the 1.5°C pathway. “The second round of SBTi targets aim to reduce 85% of Scope 1 and Scope 2 emissions and 42% of Scope 3 emissions by 2030 versus 2021, and a net-zero carbon emission commitment by 2050. Meeting the Scope 1 and Scope 2 target by 2030 would represent a 97% reduction compared to 2015, reinforcing our industry leadership.”
SUSTAINABILITY TRENDS IN THE MAJOR APPLIANCE INDUSTRY
Consumers are increasingly looking for appliances that combine performance with lower environmental impact. Energy efficiency remains one of the strongest purchase drivers globally and in Australia and New Zealand, alongside water efficiency, durability and reliability. “We’re also seeing growing interest in products that help reduce household waste, extend the life of clothing and reduce energy use without compromising performance. Consumers want sustainability to be simple and practical, delivered through features and design rather than complexity,” Hegvold said.
SUSTAINABILITY REPORT AR “Features such as cold water washing through product design, with most new models defaulting to 30°C or below, encourage the adoption of more energy-efficient practices. These product enhancements are reinforced by comprehensive educational initiatives aimed at updating consumers on the proven effectiveness of contemporary detergents, clarifying the advisory nature of care label temperatures, and correcting misconceptions regarding washing temperature and perceived cleanliness.” Extending product life is particularly important for consumers, so the Electrolux Group continues to invest in repairability and serviceability, supported by spare parts availability and repair services. “We have also developed design guidelines that help our product teams improve repairability from the earliest stages of development. At end-of-life, we support appliance recycling programs across our markets and continue to explore refurbishment, remanufacturing and material recovery initiatives to keep valuable resources in circulation. We are also increasing recycled content in products and reducing waste from our operations. Our ANZ operations are regularly achieving an average reduction in waste to landfill of over 95%,” Hegvold said. Supporting and advocating the adoption of sustainable packaging solutions across the consumer electronics and home appliance sector is the key challenge the group is seeking to address. “The focus for the group and the appliance industry generally is eliminating problematic materials and improving recovery rates in the supply chain. I’m proud of the work our teams around ANZ have achieved in this area and the combined industry voice of COFOSS (Coalition for Sustainable Solutions) in driving change in product and packaging stewardship.”
HELPING CONSUMERS MAKE MORE INFORMED DECISIONS
While consumers are increasingly interested in sustainability, there is often a gap between purchase intent and understanding. Many consumers find sustainability claims difficult to compare or are unsure how product efficiency translates into everyday benefits. Price sensitivity can also remain a factor. “Appliance companies and retailers can work together by making information clearer and easier to understand. By focusing on practical benefits such as lowering energy bills, reducing water usage, and improving product longevity helps consumers make informed decisions with confidence,” Hegvold said. “We focus on communicating sustainability through clear product benefits and trusted industry labelling. Energy and water efficiency ratings remain important tools, but we also continue to develop product features and communications that make resource savings tangible and easier to explain.”
Electrolux Group aims to connect sustainability with outcomes consumers care about from extending garment life and reducing food waste to lowering household energy consumption and improving home wellbeing. “This helps retail teams translate sustainability into meaningful everyday value. Our trade operations team are always on the lookout to help them to deliver compelling stories about our products and, importantly, how to impart information about the key features that can make a difference for consumers.” Looking ahead, the Electrolux Group expects an increasing focus on product efficiency, circularity and transparency across the appliance industry. As regulations evolve and consumer expectations grow, areas such as repairability, recycled materials, carbon reduction and product lifecycle performance will become increasingly important, according to Hegvold. “Digital connectivity and smart technologies will also play a larger role by helping consumers optimise energy and water usage, extending product lifespans and improving the ownership experience through predictive maintenance and upgrades. Ultimately, sustainability will continue to be most effective when it is built into product innovation and helps consumers live better while reducing environmental impact,” he said. AR
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We have developed design guidelines that help our product teams improve repairability... At end-of-life, we support appliance recycling programs across our markets and continue to explore refurbishment, remanufacturing and material recovery initiatives
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– Kurt Hegvold, Electrolux.
The Electrolux showroom at the group’s Australian headquarters in Mascot, Sydney.
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Product longevity, repairability and resource efficiency are central to Miele's approach to sustainable product development.
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Built to last: Miele focuses on longevity and repairability
iele is proud of its rapid “We’re also expanding our focus on progress toward its 2030 refurbishment. More than 12,000 electronic climate targets. In particular, components were refurbished for our spare the company has achieved a 27% parts system in 2024, while a pilot in the reduction in emissions generated Netherlands has seen around 600 washing during the use phase of Miele machines refurbished and offered for resale, appliances – compared to the 2019 exploring the potential to give complete baseline – meaning it is well on track to appliances a second life. meet its 2030 target of a 30% reduction. “At the same time, we’re looking at Miele is revalidating its sciencehow future products can be designed The Miele app allows customers to track their electricity and water consumption, and compare it over time. based targets and developing a with recyclability and end-of-life recovery climate transition plan based on the in mind. One example is Vooper, our SBTi Net-Zero Standard to help map its longer-term approach to modular cordless vacuum cleaner design study. The unit can be reducing greenhouse gas emissions across the business and in completely dismantled and, with the exception of the battery, its products, while establishing the next long-term climate targets. components can almost entirely be returned to the material cycle. One important area is the use of Product Carbon Footprints to This is where we see significant opportunity for improvement: assess emissions throughout an individual product’s lifecycle. This continuing to increase the use of recycled materials, while making helps the company identify where the greatest impacts occur and products and components easier to repair, refurbish, dismantle where changes in design, materials, production or efficiency can and ultimately recycle,” Slater said. make the greatest difference. “Circularity will also remain a major priority including how INTENTION VERSUS EVERYDAY BEHAVIOUR we can increase the use of recycled materials, refurbish more Research commissioned by Miele found that three in five (61%) components and appliances, and design future products respondents considered sustainability criteria when purchasing so valuable materials can be recovered and returned to the products, yet only 11% said they most frequently selected Eco cycle more easily,” Miele Australia consumer data and product programs on their washing machines and dishwashers. engineering manager, Matthew Slater said. Miele has developed a ‘Sustainability in Practice’ learning Energy and water efficiency continue to be important too. module with talking points on reducing water, detergent, Miele’s latest Sustainability Report shows growing customer and energy consumption and associated greenhouse gas interest in electricity and water consumption, with efficiency emissions. Miele service technicians also receive regular ratings playing an important role in purchase decisions. sustainability training. “At the same time, there are now more ways to help customers Over the coming years, Miele’s focus will remain on understand what those efficiency figures mean once an appliance progressing 2030 sustainability targets, continuing to reduce is being used at home. Through the Miele app, customers can energy consumption across operations, increasing renewable see how much electricity and water individual programs use, energy generation and reducing emissions from the vehicle fleet. while the Consumption Dashboard allows them to track their “At the same time, we’ll focus on reducing the environmental consumption, compare it over time and access tips for using their impact of our products throughout their lifecycle. Research and appliances more efficiently.” innovation also play an important role. Miele is involved in the Product longevity and repairability remain central to Miele’s Sustainable Lifecycle Engineering research project, which is approach, with the company currently holding around 72,000 developing methods and tools to evaluate different approaches original spare parts, with functionally important parts available for to circularity and greenhouse gas reduction and to support at least 10 and up to 15 years after production ends. more sustainable product development.” AR 10
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Midea doubles down on improving circular economy
ne of the most significant aspects of Midea’s sustainability progress in 2026 is the scale at which the company can demonstrate a measurable impact across manufacturing, energy use, water management, product innovation and recycling.
• 100% of Midea manufacturing bases are certified to ISO 14001 and ISO 50001 standards. • 16 zero-waste factories and 19 factories with Zero Waste-tolandfill certification. • 1,390 energy conservation projects have been implemented across the business. • In renewable energy, Midea has already reached 412MW of installed photovoltaic generation capacity across 38 factories, against a 2030 target of 500MW. • Midea’s Hefei washing machine facility in China became the group’s first Carbon Neutral Factory, certified by SGS under ISO 14068-1. It has deployed a 22.83MW photovoltaic and energystorage system, with a 98% self-consumption rate for generated power. It is delivering annual carbon reductions of more than 13,000 tonnes of CO2e, reduced energy consumption of key equipment by 31%, reduced overall factory water consumption by 33.7%, and increased its water recycling rate by 40%. • Technology such as nano-bubble washing contribute to an estimated 1.6 billion litres of water saved annually. Over the next 12 months, Midea’s priorities are focused on progress against long-term targets, particularly in renewable energy, product carbon measurement, recycling, R&D and supply chain sustainability. “We are also focused on improving the environmental impact of our products across their full lifecycle. Carbon-footprint coverage of Midea’s major smart home products currently stands at 41.3%, with a 2030 target of 100%. Expanding that coverage gives us better data to identify where reductions can be made across materials, manufacturing, transportation, product use and end-of-life management,” Midea Australia and New Zealand general manager, Ivan Ma said.
“Midea has reached 13.8 million recycled products, against a 2030 target of 50 million units. That means continuing to expand recycling systems, reverse logistics, trade-in initiatives and partnerships that make it easier for products and materials to remain within the circular economy for longer.” Midea has established a Green Recycling Management scheme incorporating recycling channels, trade-in programs and partnerships with recycling enterprises. Midea’s first Green Recycling Industrial Park in Chongqing combines recycling, smart manufacturing and intelligent logistics. “Internationally, we’re building reverse-logistics networks and working with specialist recycling partners. The greatest opportunity now is making that circular approach easier and more consistent. Collection, repair, reuse and recycling systems vary considerably between countries, so collaboration between manufacturers, retailers, governments and recycling partners is critical.” The biggest barrier is still the consumer perception that sustainability comes at a premium, especially when price remains important for most households in this economic environment. “If we’re asking consumers to choose a more sustainable product, the industry needs to demonstrate that sustainability can also represent better long-term value, be it through lower energy or water consumption, greater durability and a longer life,” Ma said. Another challenge is that sustainability can become too technical so supporting sustainability claims with recognised standards, certifications and measurable product performance is imperative. “For retail, the opportunity is to translate those credentials into benefits that can be easily understood.” In the years ahead, Midea believes product carbon footprints, recycled and lower-carbon materials, repairability, Extended Producer Responsibility (EPR) and more sophisticated end-of-life systems will become increasingly important. “We also see a strong move towards greater transparency. Consumers, retailers and regulators want to know not only how efficient an appliance is when operating, but where its materials came from, its carbon footprint, whether it can be repaired and what happens to it at the end of its life.” AR
The Air Conditioning, Heating, and Refrigeration Institute (AHRI) is collaborating with Midea to advance regional energy efficiency standards and streamline regulatory pathways for market access across global regions.
Midea is focused on improving the environmental impact of its products across their full lifecycle.
HIGHLIGHTS IN NUMBERS:
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Winning Group sharpens focus on Scope 3 emissions
ne of the most significant sustainability milestones for Winning Group this year was the transition towards an electrified delivery fleet through a strategic partnership with global fleet electrification and battery storage specialist, Zenobē. The partnership sees 30 electric trucks deployed across Australia, including 10 trucks at Winnings’ Kemps Creek, NSW distribution centre and a further 20 in Altona, Victoria. “We’re particularly proud that brand partners including Electrolux and Fisher & Paykel are supporting us on this journey. Decarbonising the supply chain will require collaboration across the industry, and partnerships such as these demonstrate what is possible when retailers, manufacturers and logistics providers work together,” Winning Group head of sustainability and industry impact, Alice Kuepper said. Winning Group has also continued to build an understanding of the climate impact of its longstanding takeback and recycling programs. Preliminary analysis suggests that the removal and recycling of old appliances, packaging and mattresses avoided an estimated 12,370 tonnes of CO2-e in FY26 through improved material recovery. “To put this into context, this is double our reported Scope 1 and Scope 2 emissions of 6,141 tonnes of CO2-e, which represent emissions from our direct operations and purchased energy.”
SCOPE 3 EMISSIONS IN THE SPOTLIGHT
Winning Group recognises that a significant proportion of its emissions sit outside its direct operations. The group will therefore focus on improving the quality and granularity of its emissions data, while working more closely with suppliers and other value chain partners to identify the greatest opportunities for emissions reduction. “We will also continue to pursue practical opportunities across our own operations, including transport, energy efficiency, renewable energy, circularity and waste.”
Winning Group has transitioned towards an electrified delivery fleet through a strategic partnership with global fleet electrification and battery storage specialist, Zenobē.
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Energy and water efficiency continue to be important considerations for appliance customers, particularly as households look at the ongoing cost of running their appliances. Appliances Online makes more efficient products easier to identify through the Efficient Rows initiative, which highlights products that meet defined energy and water-efficiency criteria. “We are also seeing a broader consumer interest in the overall lifecycle of products including how long an appliance is expected to last, whether it can be repaired and what happens to it at the end of its life,” Kuepper said.
MOVING BEYOND POINT OF SALE
Appliances Online’s educational campaigns provides practical information about caring for appliances, maintaining performance, minimising energy use, accessing repairs and spare parts, and responsibly managing products when they are no longer usable. The Home Clearance business also supports product longevity by giving products that may otherwise have limited retail pathways, including transport-damaged, superseded, returned or lightly faulty products, an opportunity to find a new home. At the end of life, Winning Group facilitates the collection and recycling of old appliances, mattresses and packaging associated with products sold through Winnings, Appliances Online and Andoo, as well as through selected logistics partners. “We see significant opportunities to continue improving collection, repair, recycling and material recovery across the industry. No single business can build a circular economy alone, so collaboration between manufacturers, retailers, logistics providers, recyclers and government will be critical to scaling these solutions,” Kuepper said.
SCALE, CONSISTENCY AND COLLABORATION
One of the biggest developments is the continued implementation of mandatory climate-related financial reporting and an increasing focus on Scope 3 emissions. “As reporting requirements mature, we expect greater transparency around emissions data and a stronger focus on where those emissions can be reduced. We also expect circular economy and product stewardship to become increasingly important. Improving collection, repair, reuse, recycling and material recovery requires infrastructure and collaboration across the entire value chain, rather than action by individual businesses in isolation. “The transition to lower-emissions logistics is another area where we expect to see significant progress. Our own electric truck deployment is one example of how retailers, manufacturers, logistics providers, infrastructure partners and the government can work together to address emissions beyond the traditional boundaries of a business,” Kuepper said. AR
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Zip Water prioritises waste reduction and resource efficiency
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ip Water continues to make meaningful progress across its sustainability priorities. Zip Water products have helped customers avoid the equivalent of more than three billion single-use plastic bottles, while delivering over two billion litres of drinking water through its installed product base. Zip Water has also achieved 90% diversion of manufacturing waste from landfill and now powers its Australian manufacturing facility with 100% renewable electricity. “We’ve continued to advance product innovation through the expansion of lead-free certifications, the rollout of low global warming potential refrigerants, and the development of more inclusive solutions such as the Zip Accessible Remote,” Zip Water ANZ managing director, Mike Abbott said. Key priorities over the next 12 months include increasing the use of low global warming potential refrigerants, progressing emissions reduction initiatives, and improving waste diversion and circularity outcomes. “We measure progress through emissions data, renewable energy consumption, waste diversion rates, lifecycle assessments, product certification milestones and independently verified reporting processes.” Consumers are increasingly looking beyond energy efficiency and focusing on transparency, product credentials, resource efficiency and lifecycle impacts. There is growing demand for independently verified sustainability information and products that support wellbeing, waste reduction and environmental responsibility. “We’re also seeing customers place greater value on recognised certifications and credible evidence rather than broad sustainability claims.” Zip Water designs its products for long-term performance and supports them through installation, servicing and maintenance programs. “We also use product lifecycle assessments and Environmental Product Declarations to better understand and improve product impacts across their lifespan.
“Our packaging is now fully recyclable, and we’re working with customers and waste partners to improve recycling outcomes for decommissioned units. Looking ahead, we see opportunities to further strengthen product recovery, recycling and broader circular economy initiatives.” One of the biggest barriers is the complexity of sustainability information, according to Zip Water. Consumers are often faced with multiple claims, certifications and environmental metrics that can be difficult to compare and understand. “Manufacturers and retailers can help by simplifying messaging, providing independently verified information and focusing on clear, measurable benefits that help consumers make informed choices. At Zip Water, we support this through our EPD and Declare labels, which promote transparency of product materials and encourage the responsible selection of ingredients. The certification process helps identify and eliminate materials of concern, reducing potential environmental and health impacts.” Zip Water focuses on transparency and third-party verification. This includes Environmental Product Declarations (EPDs), Declare labels, recognised certifications and affiliations such as Works with WELL, which provide clear and credible information about product performance and sustainability credentials. “We also provide tools such as our HydroTap Impact Calculator, helping customers understand practical outcomes such as reductions in plastic waste and carbon emissions.” Looking ahead, Zip Water expects increased demand for transparency and verified sustainability reporting, greater focus on product lifecycle impacts and circular economy principles, and stronger links between sustainability, health and wellbeing. “Consumers, regulators and businesses are increasingly expecting credible evidence to support environmental claims, while also looking for products that help reduce waste, improve resource efficiency and contribute to healthier homes and workplaces,” Abbott said. AR www.applianceretailer.com.au
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COFOSS board members: Ronald Tan (JB Hi-Fi Group), Darren Spencer (Narta), Kurt Hegvold (EHP), Katy Dorsett-Lynn (Retravision), Alice Kuepper (Winning Group), Paul Reid (Panasonic) and Julian Conti (Samsung) at the inaugural COFOSS Conference.
COFOSS continues to build momentum
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026 has been a significant year of growth and momentum for the Coalition for Sustainable Solutions (COFOSS), with the organisation moving from establishing its foundations to building greater industry alignment, advocacy and practical solutions. In addition to welcoming new members including ASKO, Breville, De’Longhi, Hisense, JURA, LG, and SMEG, a key milestone was the inaugural COFOSS Conference, which brought together more than 60 senior leaders from across Australia’s consumer electronics and home appliance industries. “The message was clear: sustainability is increasingly moving beyond a compliance agenda to become a strategic business imperative,” COFOSS board director and Winning Group head of sustainability and industry impact, Alice Kuepper said. “The industry has a choice: wait for regulation to dictate the pace of change or work collectively to help shape the solutions. The strong appetite for collaboration reinforced COFOSS’ role in bringing industry together to tackle issues that individual organisations cannot solve alone.” A central part of the conference was a 90-minute industry workshop where participants highlighted the need to make repair more accessible, improve consumer education and develop more effective collection and recovery pathways. COFOSS is now working to translate these shared concerns into a robust, evidence-based position on product stewardship.
ADVOCACY
COFOSS’s advocacy work has also progressed, with members coming together to respond to emerging regulatory issues affecting the appliance industry. “One example has been our work on proposed microplastics filtration requirements for washing machines in NSW. COFOSS members collaborated to gather evidence and research from European counterparts and develop a comprehensive, industryled briefing for the NSW Government outlining concerns around the proposed implementation timeline,” Kuepper said. “This work demonstrated the value of having a collective industry platform capable of bringing together technical 14
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expertise, international experience and the practical realities of the Australian market.” The NSW EPA has subsequently welcomed further engagement with COFOSS and identified the Coalition as a key stakeholder for ongoing consultation as the regulations are developed.
KNOWLEDGE
COFOSS partnered with the Australian Packaging Covenant Organisation (APCO) to deliver a webinar for members on the direction of packaging reform in Australia, enabling them to better understand the proposed mandatory Extended Producer Responsibility (EPR) framework, as well as potential fee methodologies and eco-modulation. The webinar also shared practical insights from COFOSS’ work on EPS recovery, alongside industry initiatives such as Beko’s EPS-free packaging pilot. It also gave members the opportunity to ask questions and build their understanding of a complex and changing policy environment. “With packaging reform now delayed, COFOSS provides members with timely education, trusted industry insights and opportunities to engage with policy developments helping businesses stay informed and prepared.”
LOOKING AHEAD
As COFOSS enters its next phase, the focus is on translating collaboration into outcomes centred around product stewardship, packaging stewardship, policy advocacy and harmonisation, education and partnerships, and organisational sustainability. “The challenges facing the appliance sector are complex and increasingly urgent, but 2026 has demonstrated that there is a growing willingness across the industry to work together. The opportunity is to turn that into coordinated action. We need to be proactive, forward-thinking and prepared to help lead change and shape future regulation. We encourage suppliers and retailers to join existing members in having a hand in the future design and delivery of critical initiatives that will shape the future of our industry,” Kuepper said. AR
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APCO: Australia’s packaging transition needs certainty
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ackaging is designed years before it reaches retail shelves and recycling infrastructure takes years to finance and build. Businesses and investors need confidence about where the system is heading, so the Australian Packaging Covenant Organisation (APCO) was disappointed by the Commonwealth Government’s decision not to introduce a national packaging scheme in the current term, when it was made public in early September. “We respect the government’s decision, and our support for a nationally consistent Extended Producer Responsibility (EPR) approach does not change,” APCO said in a statement shared with Appliance Retailer. “In the meantime, our priority is to make the current framework work harder for members and to build the practical capability needed for the future. “Shortly after the government’s decision was known, APCO published its first Policy Platform, which sets out the principles and policy positions we believe should guide Australia’s transition to a nationally consistent EPR framework. At the same time, we published a Year in Review that reflects the progress made over the past year. “Over the past year APCO’s members, industry, governments and the recycling sector have continued building the foundations
APCO’s Policy Platform outlines the practical design principles for a nationally consistent approach to packaging reform.
for a more circular economy. APCO has been focused on strengthening programs that deliver value to members today while building the systems and capability needed for the future approach. Whether this is delivered through the existing co-regulatory arrangement or through new regulation, the practical requirements remain the same.” According to APCO, state-by-state regulation would increase cost and complexity for businesses operating nationally. A nationally consistent approach, whether through new regulation or the existing framework of the National Environment Protection Measure (NEPM) and Covenant, offers the lowest-cost, most effective long-term path. APCO’s Policy Platform outlines the practical design principles for such a consistent approach, supporting investment certainty, encouraging nationally consistent implementation, improving system transparency, reducing unnecessary cost, strengthening accountability and supporting better environmental outcomes. “Together, these positions are designed to work for every stakeholder across the packaging value chain. Successful reform depends on every participant in this chain working within a coordinated national framework,” APCO said. To find out more, visit apco.org.au/policy-platform AR
Tempo receives B Corp Certification
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empo, an Australian-owned consumer products company, is now a Certified B Corporation, joining a global community of businesses verified as meeting B Lab Standards for social and environmental performance, transparency and accountability. Tempo has over 25 years of experience supplying leading retailers across Australia, New Zealand, Asia, Europe, the United Kingdom and North America. The certification marks an important milestone in Tempo’s responsible business journey and reflects its belief that commercial success and positive impact can, and should, go hand in hand. The three company directors are brothers, Harry Stergiotis, Nick Stergiotis and Andrew Stergiotis. “Becoming a Certified B Corporation is a significant achievement for Tempo and a reflection of the values that guide our business every day,” Nick Stergiotis said. “We believe businesses have a responsibility to create value beyond financial returns by supporting our people, serving our customers, strengthening communities and reducing our environmental footprint. B Corp Certification validates our commitment to being a force for good.” Tempo has partnered with many of the world’s leading retailers, delivering trusted consumer products that support everyday living. Through a growing portfolio of brands spanning
audio visual, appliances, whitegoods, TVs, personal care, snacking, canned seafood and hygiene and household products. The company remains focused on delivering quality, innovation and value while operating with integrity, accountability, and care. The B Corp Certification process assessed Tempo’s governance, employee practices, environmental management, community engagement, and customer stewardship. As a Certified B Corporation, Tempo will continue to advance responsible sourcing, reduce environmental impacts, support employee wellbeing, strengthen ethical governance and help consumers make more sustainable choices. “Certification recognises the commitment our people, partners and stakeholders have made over many years,” Stergiotis said. “It also reinforces our responsibility to keep improving, measuring our impact and ensuring future growth creates positive outcomes for all stakeholders.” AR
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#1 in our industry
For the third time in a row
Our parent company ranks #89 in TIME's Most Sustainable Companies, 2026. Find out more on bekocorporate.com
*Based on TIME and Statista's World's Most Sustainable Companies of 2026 List.