Strategic Approach and Targets
Our sustainability roadmap follows an impact driven approach, is focused on material topics and has a firmly anchored governance.
We have a long track record of implementing high standards in terms of working conditions, employment relations, environmental management, health and safety at work and our durable and repairable products. This is a comprehensive commitment that we continue to expand.
We aspire to create sustainable values with our products and services by incorporating economic, environmental and social aspects in equal measures into our activities.
Strategic focus on the UN Sustainable Development Goals (SDG)
We are committed to supporting the Sustainable Development Goals (SDG) as defined by the United Nations. The SDG address the world’s most pressing sustainability challenges and are to be achieved as part of Agenda 2030 for Sustainable Development.
Our strategic approach to sustainability is based on our eight material topics and is aligned with the SDG. We have stated five sustainability ambitions, each linked to a strategic SDG and directly related to our material topics:
- Safeguarding human health (SDG 3: Good health and well-being)
- Promoting prosperous work (SDG 8: Decent work and economic growth)
- Tackling climate change (SDG 13: Climate action)
- Driving energy transition (SDG 7: Affordable and clean energy)
- Valuing natural resources (SDG 12: Responsible consumption and production)
We have also identified six additional SDG to which we can make a contribution.
Our 2027 sustainability targets
We have defined one key target for each material topic in our Mid-Range Plan for 2027.
- Greenhouse gas emissions and climate change: We want to reduce greenhouse gas emission intensity for scope 1 and 2 by 50%.*
- Energy use and efficiency: We want to increase the share of renewable electricity to 75%.*
- Longevity and cyclability: We want to double the revamp and upgrade activities.
- Environmental impacts of application purpose: We want to reach an order intake of 40% in applications supporting the energy transition.
- Working conditions: We want to maintain an employee engagement score of ≥ 80% and implement targeted improvements on the previous survey.
- Occupational health and safety: We want to keep the Lost Time Injury Rate (LTIR) below 0.7 every year.
- Product safety: We want to maintain zero incidents every year related to human health aspects of product safety.
- Business conduct: We want to maintain zero incidents every year related to corruption or anti-competitive behavior.
* Excluding the Shenyang foundry where we rely on renewable grid electricity or technological developments to achieve our ambitions. We are committed to reduce emissions and increase renewable energy at the foundry as far as possible today and buy renewable grid energy or other options as soon as available.
Overarching due diligence on human rights and international environmental standards
The focus on our material topics and sustainability ambitions includes an overarching due diligence approach. We acknowledge the responsibility to respect internationally recognized human rights and international environmental standards. We incorporate the precautionary principle into our activities and decision making, such as the consideration of environmental requirements in product design, the consideration of human rights in our supply chain and the assurance of safe product operation at our customers’ sites.
Through our recently devised Code of Conduct for business partners, we set the same high standards for suppliers as we do within our company, and we also include them in our environmental and quality policy.
Supply chain management plays a key role in this. We use our suppliers’ experience to continuously improve our products, because an important part of the value creation is provided by them. We source raw materials for the foundry in Shenyang, China, raw materials and semi-finished products for the manufacture of compressors in our factories and components and other accessories to complete and maintain the compressor systems on-site. For this, we have an established global supply chain, with core suppliers for production located in the wider regional area.