2. Sustainability Reporting at Alfa Laval
Reflections on ’The EU Directive (2014/95/EU) on non-financial and diversity information:
Is a new toothless tiger born?’
Catarina Paulson
24 April 2018

3. Agenda Setting the scene: Alfa Laval The EU directive
About the company
Sustainability
Reporting
The EU directive
What it meant for Alfa Laval’s reporting
A few concluding remarks

4. Solutions
Alfa Laval aims at creating better everyday conditions for people by providing highly efficient and environmentally responsible solutions for energy production, water supply and food.
Alfa Laval aims at creating better everyday conditions for people by providing highly efficient and environmentally responsible solutions for energy production, water supply and food.

5. Our corporate mission
To optimize the performance of our customers’ processes. Time and time again.
Explanation of the image:
The orange is used in the Pure Performance campaign in an ad when releasing the new Alfa Laval brand identity.
Title in the ad: From juicy idea to global brand
Text in the ad:
1883.
That was the year when Gustav de Laval founded the company that today is Alfa Laval. Its success was based on his brilliant invention of the continuous separator. Since then we have added heat transfer and fluid handling to our expertise in separation. We are now the world leader in all three of these technologies, with strong positions in dynamic market segments. We grow by helping our customers to grow. It’s a fruitful partnership.

6. Key technologies
Heat transfer
Energy saving solutions for heating, cooling, ventilation, evaporation and condensation
Products:
Plate heat exchangers, including brazed and welded heat exchangers
Shell-and-tube heat exchangers
Air heat exchangers
Spiral heat exchangers
Thermal fluid systems
Boilers

7. Key technologies
Separation
Efficient separation of liquids from liquids, of particles from liquids and of fluids and solids from gases
Products:
High speed separators
Decanters
Membrane filtration

8. Key technologies Safe transport and control of fluids Fluid handling
Products:
Pumps (hygienic and marine applications)
Valves
Mixers
Tank equipment
Installation material

9. Capital sales / Technology
Heat transfer
47%
18%
13%
22%
Separation
Other
Fluid handling

10. Key figures 2017 Order intake 3 802 Invoicing 3 665 Adj EBITA 582
MEUR (1 EUR = SEK)
Order intake
Invoicing
Adj EBITA
Adj EBITA as % of sales
ROCE as %
Average No. of employees

11. Sustainability
Business Principles
Business Opportunities

12. Business Principles Social Respect for human rights
Business integrity High ethical standards
Environment Optimizing the use of natural resources
Transparency Commitment to open dialogue
Our Business Principles define the way we should act in society whilst achieving our business goals. The four Business Principles – social, business integrity, environment and transparency – form the basis for our sustainability work. Our approach is to focus on the areas where we have identified the highest risks and where we can have the greatest influence.
The Business Principles are based on the OECD’s Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights and the United Nations Global Compact.

13. Business Opportunities
Alfa Laval solutions contribute to the UN Global Goals
Our solutions help create better everyday conditions for people:
Energy efficiency
Water supply
Safe food

14. Reporting history 2003 2010 2015 Drivers Content External frameworks
Reputation: ”Licence to operate”
Stakeholders: Customers/owners
Business:
”Licence to Grow”
Content
Presentation of Business Principles
Progress on Business Principles
Business Principles & Business Opportunities
External frameworks
Global Compact
Global Reporting Initiative/CDP
EU Directive 2014/95/EU
Summary
Reactive
Active
Proactive

15. Alfa Laval Sustainability Report 2017
Business Principles
Business opportunities
Implementing Business Principles and policies across the value chain
Sustainability-related risks & mitigation actions
Our products & service support our customers in reaching their environmental targets
Alfa Laval contributes to achieving the UN Global Goals
The Sustainabiltiy Report covers how Alfa Laval implements its Business Principles and policies across the value chain as well as information about sustainability-related risks and actions to mitigate these
Business opportunities related to sustainability – how we help our customers in reaching their environmental targets and how Alfa Laval contributes to achieving the UN Global Goals

16. EU Directive: What difference did it make?
Business Principles
Business opportunities
Implementing Business Principles and policies across the value chain
Sustainability-related risks & mitigation actions
Our products & service support our customers in reaching their environmental targets
Alfa Laval contributes to achieving the UN Global Goals
The Sustainabiltiy Report covers how Alfa Laval implements its Business Principles and policies across the value chain as well as information about sustainability-related risks and actions to mitigate these
Business opportunities related to sustainability – how we help our customers in reaching their environmental targets and how Alfa Laval contributes to achieving the UN Global Goals

17. EU Directive – impact and effect
EU Directive did not change what we report in any significant manner
It did have an impact on how we report

18. Concluding thoughts Regulating reporting not a change agent
But a catalyst
Small companies vs. Multinationals
The value of human & natural resources vs. financial value?

19. What really makes a difference may not be legislation…
Examples of how our offering contributes to the UN Global Goals
2 Alfa Laval products and solutions improve shelf life, reduce waste and make food production hygienic and safe.
3 Alfa Laval delivers efficient, hygienic equipment that delivers sustainable performance to the pharmaceutical industry.
6 Alfa Laval offers a wide range of technologies to treat wastewater contributing to clean water across the globe.
7 Alfa Laval products are involved through-out the renewable production process, from heating and cooling to mixing and separation.
9 Alfa Laval invests heavily in R&D, launches between new products per year and has over 3,000 patents.
12 Alfa Laval’s ambition is to make every new product more efficient than its predecessor in a life cycle perspective.
14.Alfa Laval offers a whole range of products in the areas of energy and environment, mainly for customers in the marine industry.
17 Alfa Laval has been a signatory of the UN Global Compact since 2011.