Living our commitments
Alfa Laval is uniquely positioned to play an essential role in enhancing the efficient use of energy, food, water, and other critical resources on which we all depend. We are pioneering game-changing solutions and partnering with innovative organizations to make this happen. At the same time, Alfa Laval is living up to commitments through transforming operations and supporting our value chains in preventing and mitigating negative impacts on people and the planet.
Sustainability strategy sets
key priorities
The Alfa Laval sustainability strategy is organized around four central themes – Climate, Circularity, Caring, Committed – and sets the agenda and key sustainability priorities for the business to focus on until 2030. Group targets are in place for all material issues, some with a deadline in 2025, others in 2030. Science-based carbon emission reduction targets have been set for the near term and a net-zero emissions target for 2050 covering the full value chain.
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 reflects the environmental, social and governance (ESG) issues that have been identified as the most significant in Alfa Laval’s double materiality assessment of sustainability impacts, risks and opportunities.
Each area includes a vision that sets out the ambition, which is expressed in Alfa Laval group policies. The Alfa Laval Business Principles is the overarching governing document connecting all other policies. The Environmental Policy addresses all topics in Climate and Circularity. Within Caring, there is an overall People Policy, as well as a Human Rights Policy and Health & Safety Policy. In Committed, there is an Anti-Bribery and Anti-Corruption Policy, and the Alfa Laval Business Principles for Suppliers is the cornerstone of the responsible sourcing program.
For the different areas, Alfa Laval has also set long- and short-term targets which are followed up through relevant performance metrics 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 we put on the market contribute to the sustainable transformation of business and society.
The sustainability section of the annual report follows the structure of the 4C sustainability strategy. Each section provides an overview of impacts and focus areas, activities during the year, targets and performance metrics. Key sustainability risks are addressed on pages 116-119, and business opportunities relating to sustainability are part of the strategy presentation and division overview in other parts of the annual report.
Climate
Net-zero emissions
Alfa Laval aims to achieve net-zero carbon emissions in own operations and the value chain by 2050.
In focus
- Scope 1 emissions
- Scope 2 emissions
- Scope 3 emissions
Circularity
Circular business
Alfa Laval is dedicated to safeguarding the value of natural resources throughout its value chain.
In focus
- Improving process efficiency
- Extending product life span
- Reuse and recycling
Caring
Safe inclusive culture
Alfa Laval promotes a safe, inclusive culture both within the company and in its relationships with external partners.
In focus
- Health & Safety
- Diversity, Equity & Inclusion
- Human Rights
Committed
Ethical conduct
Alfa Laval is committed to honest, respectful and ethical conduct within its organization, as well as in all external business relationships.
In focus
- Business Principles
- Anti-Bribery, Anti-Corruption
- Whistleblowing
Targets and achievements
Alfa Laval’s sustainability targets aim to drive efficiency and behavioural change to achieve better results in the short- and long term. The table below shows the company’s sustainability targets. Progress on the targets is presented in more detail within each section of the report as well as in the Sustainability Notes document available on www.alfalaval.com.
| Area | Targets | Target year | Trend to achieving target | Read more |
| Carbon emissions | 60% reduction Scope 1 & 2 emissions (base year 2020) | 2025 | x | p. 32-37 |
| Carbon emissions | 95% reduction Scope 1 & 2 emissions (base year 2020) | 2027 | x | p. 32-37 |
| Carbon emissions | 50% reduction Scope 3 emission (base year 2020) | 2030 | x | p. 32-27 |
| Energy | 5% annual improvement in energy efficiency (MWh/k direct hours) | Recurring | x | p. 38-41 |
| Water | 5% annual reduction of water withdrawal at sites in water-stressed areas | Recurring | x | p. 38-41 |
| Water | 100% recirculation of water at sites located in water-stressed areas | 2030 | x | p. 38-41 |
| Waste | 85% recycling of waste | Recurring | x | p. 38-41 |
| Waste | Zero waste to landfill | 2030 | x | p. 38-41 |
| Materials | 30% recycled material content in products | 2030 | x | p. 38-41 |
| Diversity | 35% female employees | 2025 | x | p. 42-47 |
| Diversity | 25% female managers | 2025 | x | p. 42-47 |
| Diversity | <70% homogeneity (gender/nationality) in top management | 2025 | x | p. 42-47 |
| Health & Safety | <1.5 Lost Time Injury Frequency Rate (LTIFR) | 2025 | x | p. 42-47 |
| Chemicals | No unauthorized chemicals used | Recurring | x | p. 42-47 |
| Ethics | 100% of white-collar employees trained in Anti-Bribery and Anti-Corruption | Recurring | x | p. 48-53 |
Well aligned with target
Progress made towards target
Not aligned with target
About the Alfa Laval sustainability report
Reporting scope and principles
Alfa Laval’s Statutory Sustainability Report according to the Swedish Annual Accounts Act (that applied before July 1, 2024) is found on pages 26-57 in this Annual Report, with key sustainability risks highlighted on pages 114-117. To ensure reporting in accordance with the GRI Standards, a separate “Sustainability Notes” document is published on the Alfa Laval corporate website www.alfalaval.com. The sustainability information in the Annual Report (excluding EU Taxonomy disclosures) and in the Sustainability Notes have been reviewed (limited assurance) by external auditors. Sustainability reports for previous years are available at www.alfalaval.com/about-us/sustainability/a-matter-of-trust/sustainability-reports/.
Alfa Laval’s sustainability reporting covers the 2024 calendar year and focuses on material topics and activities in line with stakeholder concerns. It covers the entire Alfa Laval group and all wholly owned subsidiaries. All Alfa Laval manufacturing sites, service centers and large offices are required to report environmental and health & safety data. Employee data relating to diversity presently covers Alfa Laval branded companies reporting through our human resources system, corresponding to about 85 percent of total Alfa Laval employees.
Materiality assessment
Focusing on the most material sustainability issues is essential for an effective sustainability strategy and a focused sustainability report. Alfa Laval has in the past carried out regular impact materiality assessments to review the sustainability issues with greatest significance and ensure that the company’s sustainability strategy remains relevant.
In 2024, Alfa Laval carried out a double materiality assessment based on the principles set out in the European Sustainability Reporting Standards (ESRS) for the first time. The assessment process involved a series of workshops and interviews with key corporate functions and individuals with subject matter expertise on the sustainability issues being assessed. This was followed by more thorough research and discussions with divisional management and internal business owners, and contacts with selected external stakeholders to verify the assessment. The consolidated findings from the workshops, research and consultations were discussed in Group Management meetings, and the final assessment and prioritization of material impacts, risks and opportunities was then reviewed and decided by the Board of Directors.
The outcome of the double materiality assessment largely confirms that the focus areas of the current sustainability strategy are material topics. Climate and circularity were highlighted as the most important environmental topics, both in terms of impact materiality and financial materiality. Reducing carbon emissions in own operations and the value chain remains a high priority for Alfa Laval, and this is closely linked to improving the efficient and circular use of resources and products put on the market. Supporting customers in the transition towards a fossil-free and less resource-intensive future is at the core of Alfa Laval’s business strategy and represent material opportunities.
As a large company, Alfa Laval employs a significant number of people and impacts even more workers in the value chain, particularly employees working for our suppliers. Ensuring decent working conditions and respecting fundamental labor rights of Alfa Laval employees as well as supply chain workers were established as material impacts and potential risks in the materiality assessment. This implies continued focus on existing prioritizations in the Alfa Laval sustainability strategy, including safeguarding health and safety in the workplace, promoting diversity and inclusion, and offering training and skills development for employees.
Maintaining a strong responsible sourcing program and a commitment to uphold ethical business principles were also identified as material sustainability issues in the double materiality assessment. Employee or supplier non-compliance with the Alfa Laval Business Principles can potentially have a significant impact on people and possibly the environment, and also presents a financial risk to Alfa Laval that may affect brand value and undermine stakeholder trust.
Further information
For more information about Alfa Laval sustainability activities and reporting, please contact
Anna Celsing, VP Group Sustainability
Tel: + 46 730 55 48 00
e-mail: anna.celsing@alfalaval.com