Goals and outcomes
Financial targets
Alfa Laval aims to realize its business purpose, while at the same time meet its financial targets established with regard to growth, profitability and capital utilization. By achieving or exceeding these targets, Alfa Laval creates the necessary scope for its continued favourable development as well as generating increased value for its shareholders in the form of an annual dividend and by maximizing the value of the company.
Financial benchmarks
In addition to its financial targets, Alfa Laval also has a number of financial benchmarks reflecting the company’s ambitions with respect to the net debt / EBITA ratio and cashflow from operating activities. Further information on the financial benchmarks can be found on page 136.
Goal
5%
Growth
Alfa Laval’s goal is to achieve average annual sales growth of at least 5 percent measured over a business cycle. The target was set in light of the longer-term demand trends for Alfa Laval’s key technologies, the prevailing business scenario and against the backdrop of Alfa Laval’s achievements in recent years.
Goal
15%
Profitability
Alfa Laval is to achieve an operating margin – adjusted EBITA – of 15 percent measured over a business cycle. This target was established based on the company’s ambitions for growth, investments and portfolio development, while also taking historical margins into consideration.
Goal
20%
Capital utilization
The goal is to have a return on capital employed of at least 20 percent. The target reflects the company’s ambition to optimize the capital utilization by balancing investments and operating working capital.
Outcome 2023
22.0%
Outcome 2023
16.1%
Outcome 2023
21.0%
Sustainability targets
Alfa Laval’s environmental and social targets aim to drive efficiency and behavioural change to achieve better results in the long term. The table on the next page contains the company’s sustainability targets. More details and information about the progress are presented on pages 46–79.
| Area | Targets | Target Year | Trend* |
| Carbon emissions | 50% reduction Scope 1 & 2 emissions | 2023 (base year 2020) | x |
| Carbon emissions | 95% reduction Scope 1 & 2 emissions, 50% reduction Scope 3 emission | 2030 (base year 2020) | x |
| Energy | 5% improvement in energy efficiency (MWh/k direct hours) | 2023 (base year 2020) | x |
| Water | 5% reduction of water withdrawal at sites located in water stressed areas | 2023 (base year 2020) | x |
| Water | 100% recirculation of water at sites located in water stressed areas | 2030 | x |
| Waste | 85% recycling of waste | Recurring | x |
| Waste | Zero waste to landfill | 2030 | x |
| Materials | 30% recycled material content in products | 2030 | x |
| Diversity | 35% female employees | 2025 | x |
| Diversity | 25% female managers | 2025 | x |
| Diversity | <70% homogeneity (gender and nationality) in highest management groups | 2025 | x |
| Health & Safety | <1.5 Lost Time Injury Frequency Rate (LTIFR) | 2025 | x |
| Chemicals | No unauthorized chemicals used | Recurring | x |
| Ethics | 100% of employees trained in Business Principles, Anti-Bribery, Anti-Corruption | Recurring | x |
*Trend to achieving target based on results 2023
Well aligned with target
Progress made towards target
Not aligned with target