Commitments

Aligning our strategic priorities with stakeholder demand

When setting our strategic priorities, we regularly interact with our stakeholders to safeguard that different perspectives are considered. We also assess our impacts, risks and opportunities from an environmental, social and governance perspective.
Female employee engaging with team members

Double Materiality Assessment

To identify which sustainability topics that are most relevant to us as a Group, we regularly conduct so called materiality assessments. The outcome is used to:

  • Guide our strategic priorities
  • Serve as the basis for setting Group targets
  • Identify sustainability reporting and disclosure requirements

In 2023, we aligned our methodology with the requirements of the European Union's Corporate Sustainability Reporting Directive (CSRD), and we conducted a Double Materiality Assessment (DMA).

The DMA is essentially a strategic tool for prioritization to address main impacts, risks and opportunities as well as to stay relevant and in line with different stakeholders’ expectations.

The DMA process explained

Watch the video to learn how we conduct a Double Materiality Assessment (DMA) and what it is used for.

Impacts, risks and opportunities

When conducting a DMA, we assess and identify our main impacts, risks and opportunities (IROs) throughout our value chain. We look at what positive and negative impacts we, as a Group, have on the planet and society. We also look at how the planet and society affect us in terms of financial risks and opportunities.

Basis for our Group targets

The outcome of the DMA has guided us in what targets to set for the strategy period 2025-2027 including our long-term commitments for 2030. The DMA results also define the scope of our sustainability reporting and disclosure. We review the DMA results on an annual basis and make updates when needed.

Our material topics 2025

The table provides an overview of our material topics from a value chain perspective. Materiality is determined based on multiple actual and/or potential impacts, as well as financial risks and/or opportunities (IROs). The table summarizes the main aspects.

  Sub-topic Summary of main aspects Materiality Upstream Own operations Downstream
Climate change Climate change mitigation GHG emissions are generated across the value chain, with the vast majority occurring in scope 3 downstream. Through energy efficiency improvements and low-carbon technologies, we help our customers to reduce emissions. Impact and financial x x x
Energy A majority of our products consume significant amounts of energy during use. Through energy efficiency, we support our customers in optimizing their energy consumption. Impact and financial     x
Resource use and circular economy Resource inflows, including resource use We source and use materials, such as metals, that have significant environmental impacts. Impact x    
Resource outflows related to products and services We aim to develop technologies based on circular design principles to meet stakeholder expectations. Financial     x
Waste Our operations generate waste throughout the value chain. Impact x x x

  Sub-topic Summary of main aspects Materiality Upstream Own operations Downstream
Own workforce Working conditions We provide good working conditions and employment opportunities. Poor health and safety performance could harm people and negatively affect our reputation. Impact and financial   x  
Equal treatment and opportunities for all We provide learning and development opportunities for employees and promote equality and inclusion. Failure to do so could result in discrimination and gender gaps. Impact   x  
Workers in the value chain Working conditions Poor working conditions at business partners may pose social and labor risks, including health and safety issues. Impact x   x
Equal treatment and opportunities for all Discrimination remains a widespread global issue and represents a potential risk within our value chain. Impact x   x
Other work-related rights The non-responsible sourcing of minerals may give rise to human rights violations. Impact x    
Consumers and end-users Personal safety of consumers and/or end-users Customers rely on us to provide solutions that are safe and ergonomically designed. Product malfunctions could harm users and negatively affect our reputation. Impact and financial     x

  Sub-topic Summary of main aspects Materiality  Upstream Own operations Downstream
Business conduct Corporate culture We uphold an ethical corporate culture guided by our Code of Conduct. Impact and financial   x  
 Management of relationships with suppliers Non-responsible supplier management may increase negative environmental, social, and governance impacts. Impact x    
 Corruption and bribery As a global company, we and our business partners are present on markets where corruption is prominent. Impact x x x

Stakeholder consultation

The so called ‘materiality assessment’ for the strategy period 2022-2024 was done in 2021. It gathered insights from external and internal stakeholders to identify key strategic areas. We consulted stakeholders, including customers, employees, investors, NGOs, peers, and board members, through in-depth interviews and surveys. This process evaluated the importance of topics like our carbon footprint, gender balance, and safety and well-being.

Analysis and results

Third-party experts analyzed the input to create a materiality matrix, highlighting the significance of each topic to our success and impact. The below assessment is what guided the 2022-2024 strategy period and strategic targets.

Learn how we work with our material topics

Environment

Climate

Through our technologies and together with our business partners, we enable the transition to a low-carbon society. By setting science-based targets, we have committed to cut greenhouse gas emissions across our value chain in line with the Paris Agreement.
Learn about our climate efforts
Solar panels and two service technicians

Environment

Circularity

We integrate circularity in different stages of a product’s life – from design to waste reduction. We aim to systematically apply circularity principles in our product development, covering all new and redesigned products by 2027.
Learn how we work with circularity
Man adjusting machinery used in production

Careers

Diversity and inclusion

We firmly believe that diversity and inclusion have a positive impact on our workforce and that it strengthens employee engagement, while contributing to innovation and better decision-making.

Learn how we work with diversity and inclusion
A woman and a man are sitting on a couch. She is looking up from her laptop at the camera. He is looking at the computer.

Careers

Learning and development

Lifelong learning is part of our core. Our culture actively promotes learning, for the good of your professional and personal development.
Learn how we work with learning and development
Woman working in research and development.

Social and governance

Safety, health and well-being

Creating a safe working environment and addressing occupational health and safety risks are important to us. We promote a culture of safety awareness and continuous improvement, with regular monitoring and reporting of safety performance.
Learn how we ensure safety and health
Three female colleagues in safety gear standing proudly facing the camera in one of our warehouses.

Social and Governance

Human rights

We are committed to upholding high standards of business ethics and human rights throughout our value chain. This includes due diligence and compliance with international frameworks and ensuring that our business partners adhere to our Code of Conduct.
Learn how we work with human rights
Collegues from different ethnical backgrounds cooperating in the office.

Social and governance

Business partners

We work with business partners who share our ethical standards. We require all significant business partners to sign our Business Partner Criteria to confirm compliance with our Code of Conduct. A collaborative approach helps manage risks and promote sustainability.
Learn how we work with business partners
Two colleagues, a man and a woman, sitting down with laptops in their laps in an office reception area.

Social and governance

Code of Conduct

Our Code of Conduct fosters ethical business practices and is the core of everything we do. It applies globally, with mandatory training and compliance for employees and business partners. Any suspected breach of the Code can be reported through our external system SpeakUp.
Explore our Code of Conduct
Colleagues gathered around a laptop in an office sitting area.

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Strategy

Our Group targets

The outcome of the Double Materiality Assessment (DMA) defines our strategic priorities and serves as the basis when setting our Group targets. Sustainability is integrated in our strategy and guides our priorities, targets and long-term commitments.

Explore our targets
Group of employees taking a look at the K-Flow flow drill.

Investors

Our Annual Report

Our integrated annual report includes both financial and sustainability information. Among other things, the report describes our Double Materiality Assessment (DMA) process in more detail, including our impacts, risks and opportunities. 

Read our Annual Report
Annual General Meeting in Stockholm, Sweden, on April 27, 2023.