Sustainability 2022
Major global events in 2022 highlighted the importance of sustainability work in order to ensure long-term success in a world of constant change.
Optimizing today
– innovating for tomorrow
With one foot in the traditional industrial economy and the other exploring the new digital and sustainable landscape, Alfa Laval is uniquely positioned to play an essential role in transforming the fossil-fuel world into one that is sustainable, decarbonized, open and inclusive. This journey is ongoing, and Alfa Laval is constantly optimizing and refining its existing ways of working, while pioneering and developing new technologies to meet tomorrow’s demands.
Accelerating change
While Alfa Laval is working towards becoming a circular business and reduce carbon emissions across the value chain, one area where it could potentially have a major impact is the difference the company’s products can make in its customers’ operations. Each of its three divisions have exciting possibilities ahead, with opportunities to change the way their customers do business and support them in the upcoming transformation.
The Energy Division can meet the unprecedented demand for energy efficiency with its new generation of products, such as heat exchangers and services. Alfa Laval also helps drive the shift towards cleaner energy, thanks to its leading range of products for the production of biofuels, hydrogen power and for energy storage.
With marine transportation currently responsible for approximately 2.5 percent of global greenhouse gas emissions, the Marine Division is actively supporting the switch to carbon-neutral shipping by developing products for new and more sustainable fuel types. Together with Wallenius, Alfa Laval is developing a ground-breaking, wind-driven maritime vessel as part of the Oceanbird project. This vessel can potentially reduce maritime shipping-related carbon emissions by 90 percent.
The Food & Water Division is seeing great demand for more energy-efficient products. For example, E-motion separators are 70 percent more energy efficient compared to traditional technologies. Within water and waste treatment, new and improved products help reduce customers’ water consumption and make water treatment processes more efficient.
Alfa Laval is far from alone in driving this change and seeks out strong partnerships with suppliers to optimize the supply chain from a sustainability perspective. Innovative collaborations such as the ‘Re-Made to Matter’ initiative with Stena Recycling, make it possible to upgrade to a more energy-efficient heat exchanger and get a refund on the old one, which is then recycled.
Equally important is the shift to a more sustainable and inclusive workplace, where everyone feels welcome and treated equally regardless of gender, age, origin, or role in the company. Alfa Laval needs to attract, develop, and retain the best people, and being a fair, open, and inclusive workplace is key to achieving that goal.
Sustainability notes
The sustainability notes for 2022 including our GRI disclosures.
Data and information
Data and sustainability information for previous years are available here:
A strategic approach
to the journey ahead
A new sustainability strategy was launched and approved by top management and the board in 2021. The strategy includes the most salient areas Alfa Laval is to focus on before 2030. These have been identified through stakeholder assessments and dialogue, through internal prioritization and analysis of which areas are going to be important to the continued competitiveness of the company.
The purpose of the sustainability strategy is to focus on those areas where Alfa Laval has the largest impact and wants to show leadership as a company. The strategy is divided into four main areas – caring, committed, circularity and climate. These areas reflect the environment, social and governance (ESG) issues that are most salient and where Alfa Laval can contribute most.
Each area includes a vision that sets out the ambition.
For the different areas, Alfa Laval has also set long- and short-term targets which will be followed up through KPIs to ensure continuous progress and to meet potential challenges through action. Where applicable, Alfa Laval will encompass the whole value chain in its ambitions including how the products and technologies the company puts on the market contribute to progress. The sustainability section of the annual report for 2022 is divided into the four topics. Each section describes focus areas, targets, processes, governance and how we follow-up on progress.
Climate
Carbon neutral
Alfa Laval has the target to become carbon neutral in Scope 1 & 2 emissions and achieve an absolute reduction in Scope 3 emission by 50 percent by 2030.
Circularity
Circular business
Alfa Laval is dedicated to safeguarding the value of natural resources throughout its value chain.
Caring
Safe inclusive culture
Alfa Laval promotes a safe, inclusive culture both within the company and in its relationships with external partners.
Committed
Ethical business
Alfa Laval is committed to honest, respectful and ethical conduct within its organization, as well as in all external business relationships.
Targets and target achievements
Alfa Laval’s sustainability targets aim to drive efficiency and behavioural change to achieve better results in the short- and long term.
Carbon emissions
Carbon neutral in Scope 1 & 2 emissions 50% absolute reduction in Scope 3 emission
2023 (base year 2020)
Progress made towards target
Energy
5% improvement in energy efficiency (MWh/k direct hours)
2023 (base year 2020)
Well aligned with target
Water
5% reduction of water consumption in sites located in water stressed areas
2023 (base year 2020)
Well aligned with target
Water
100% recirculation of water in sites located in water stressed areas
2030
Progress made towards target
Diversity
<70% homogeneity (gender and nationality) in highest management groups
2025
Well aligned with target
Engaging with stakeholders is an essential process
Alfa Laval has identified customers, shareholders and investors, employees and future employees, business partners (including suppliers, authorities, media, and the communities around us) as priority groups for engagement on sustainability issues. We have selected the stakeholder groups that make up our value chain and that can provide meaningful insight into our company’s sustainability strategy.
The company has regular contact with its customers, and conducts different customer surveys, which provide in-depth understanding of how customers perceive the company.
Alfa Laval shareholders participate in Annual General Meetings and investors are invited to annual capital markets days. Alfa Laval’s potential to effectively respond to future sustainability challenges is one of the topics discussed at these meetings.
Employees are encouraged to give feedback directly to their managers and through employee surveys. Suppliers are important partners for Alfa Laval’s business success. Regular interaction with them results in mutual development. Alfa Laval has an open dialogue with the communities in which the company operates, including collaboration with universities and local governments.
Materiality assessment
Alfa Laval carries out a materiality assessment regularly to review the sustainability topics with greatest relevance. This assessment, together with the stakeholder interaction described above, helps the company to identify material aspects. These are analysed from a risk, opportunity and business impact perspective and are validated by company management.
The sustainability strategy encompasses the topics that are most material, both internally and externally. Moreover, Alfa Laval’s products and services play a key role in enabling our customers to achieve their energy efficiency, climate, circularity and water goals. This is ranked as important, both internally and externally – internally because of the business opportunities created for the company, and externally because our products and solutions can help customers reduce their environmental impacts. The assessment also shows whether stakeholder perceptions of Alfa Laval’s performance in the prioritised areas are in line with their expectations. Group management is involved in these discussions.
Stakeholder engagement
To support the progression towards business and sustainability goals, it is important to listen and engage with different stakeholders.
Alfa Laval’s stakeholders’ engagement builds on both formal and informal dialogues. During 2022, trends where stakeholders are more active in asking questions and open to dialogue around sustainability have continued to grow. Two stakeholder groups stand out in this area – customers and investors. They are, among other sustainability topics, interested in climate change and the responsibility the company takes to respond to this challenge, the company’s role in reaching the UN Sustainable Development Goals and the company’s work on diversity and inclusion, which guide our meetings and regular dialogue with them.