Responsible, sustainable and effective

Corporate governance identifies what the decision-making process at Alfa Laval looks like and the structures that regulate how the company is governed. Sound corporate governance is an essential basis for ensuring that Alfa Laval, from a shareholder perspective, is governed responsibly, sustainably and effectively. As a Swedish public limited liability company with shares listed on Nasdaq Stockholm, the framework for Alfa Laval’s corporate governance is dictated by external rules as set out, inter alia, in the Swedish Companies Act, the Swedish Annual Accounts Act, the Nordic Main Market Rulebook for Issuers of shares (“Main Market Rulebook”) and the Swedish Corporate Governance Code (“the Code”). These provisions are supplemented by internal principles and regulations, such as procedures for control and risk management as well as governing documents with guidelines and instructions. At Alfa Laval, these internal governing documents include the Articles of Association, the Board and CEO instructions as well as Alfa Laval’s Business Principles and governing policies.

This Corporate Governance Report describes Alfa Laval’s corporate governance for 2024. The report has been prepared in accordance with the Swedish Annual Accounts Act and the Code, and has been reviewed by the company’s auditors.

Acting in society and reaching business goals

In today’s society, human impact on our planet is in constant focus. As new legislation becomes increasingly stringent, a sustainability paradigm is taking deeper root in society. This paradigm is leading Alfa Laval, and many other companies, to voluntarily take initiatives aimed at improvements.

In Alfa Laval, such initiatives are, inter alia, reflected in the Sustainability Strategy and in the Group’s Business Principles. Alfa Laval’s four Business Principles, Planet, Transparency, Caring and Committed, guide all of the Group’s work and describe how Alfa Laval and its employees must act in society whilst achieving the business goals – in other words, ethically and sustainably. Adhering to the Business Principles means that there are many occasions and situations where Alfa Laval can contribute to a more sustainable future and to the success of Alfa Laval’s customers, people and the planet. All employees at Alfa Laval are to comply with the Business Principles and are encouraged to report anything that conflicts with these principles. A distinct Code of Conduct is also included in Alfa Laval’s Business Principles.

As a part of its internal work, Alfa Laval regularly reviews its governing documents to ensure that they are relevant and consistent with applicable laws and developments in, for example, the Group’s Business Principles. In recent years, Alfa Laval’s Internal Controls Framework Policy, Group Information Security Policy, Group People Policy, Anti-Bribery and Anti-Corruption Policy, Environment Policy, Sourcing Policy, Health and Safety Policy, Human Right Policy, Business Resilience Management Policy, Data Privacy Policy and others have been reviewed and revised.