Our strategic approach
Our sustainability roadmap is fully integrated in our Mid-Range Plan 2027. It follows a strategic approach, is focused on eight material topics, and has a firmly anchored governance.
We create leading compression solutions for a sustainable energy future and aspire to incorporate economic, environmental, and social aspects into our business activities and decisions. We are an industrial technology company specializing in reciprocating compression solutions for all types of gases. With a company history stretching back over 180 years and products with a useful life of more than half a century, we base our business decisions on a long-term perspective. And we approach sustainability with the same mindset: pragmatic, focused on the long-term, creating value and impact driven.
Strategic focus on eight material topics
In our approach, we focus on eight material topics, which we identified in our materiality assessment. These eight topics constitute our framework and the core of our sustainability roadmap. In 2023, we have enhanced our materiality analysis to a double materiality by analyzing our impacts on the economy, environment, and society as well as the implications on our business success.
We are committed to supporting the Sustainable Development Goals (SDGs) as part of United Nation’s Agenda 2030 for Sustainable Development. We have stated five sustainability ambitions, each linked to a strategic SDG and directly related to our eight 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 SDGs to which we can contribute.
Our senior leaders play a key role in achieving our goals, which is why sustainability is part of the remuneration in the form or our longterm incentive plan. Our 2027 target to reduce our greenhouse gas emission intensity by 50%* (2021: 2.1 kg CO₂e/h) is one of three key performance indicators for the long-term incentive of our top management (see page 100, Annual Report 2023).
We developed a commitment to net-zero greenhouse gas emissions by 2035 which goes beyond our Mid-Range Plan target for 2027. We follow a 1.5°C climate aspiration in reference to the Paris Agreement for our Scope 1 and Scope 2 emissions. In addition, we are committed to reducing our Scope 3 emissions.
Overarching human rights, environmental, and governance due diligence
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 and governance standards, which is also stated in our Code of Conduct. 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.
Our third-party risk management policy ensures the uphold of our principles from our Code of Conduct in the collaboration with our partners along the value chain. Supply chain management plays a key role in this. In fiscal year 2023, we strengthened our approach on supply chain due diligence, in particular regarding child labor and conflict minerals.