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Alfa Laval

Alfa Laval

IndustrialsOverall: Advancing

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Exponential Framework

Standing firm in uncertain times - delivering world-leading results in climate solutions enablement

Alfa Laval's Leadership in the Exponential Framework

Where Alfa Laval Can Have the Biggest Impact: Pillar 3: Build & Scale Solutions (60%)

As an industrial equipment manufacturer, Alfa Laval's climate impact comes through their products' efficiency. Their heat exchangers are up to 5x more efficient than alternatives, avoiding 50 MtCO₂e annually - roughly equal to their own Scope 3 footprint.

Highlighted areas show where Alfa Laval demonstrates climate leadership

Click any highlighted category to see evidence

Cut Operational Emissions
115%
Cut Operational Emissions
Secondary
Decarbonize Value Chain
225%
Decarbonize Value Chain
Primary
Build & Scale Solutions
345%
Build & Scale Solutions
Mobilize Finance & Investment
410%
Mobilize Finance & Investment
Shape Policy & Narrative
55%
Shape Policy & Narrative
Leading
Advancing
Moderate
Not highlighted

Pillar Impact Profile

Where this company can have the biggest climate impact

P1
15%
P2
25%
P3
50%
P4
5%
P5
5%
Sector Archetype

Technology

Software, hardware, semiconductors

PRIMARYP3: 50%

Build & Scale Solutions

Climate solutions, avoided emissions, product innovation

SECONDARYP2: 25%

Decarbonize Value Chain

Scope 3 upstream emissions from suppliers and materials

Why These Weights?

Alfa Laval's products enable customer decarbonization (P3: 50%). Their heat exchangers, separators, and fluid handling equipment help customers reduce energy consumption by up to 50%. Secondary impact comes from their own manufacturing supply chain (P2: 25%).

Adjustments Applied

P3
Products halve customer energy use+10%
Learn how we calculate pillar weights

Climate Performance Across Five Pillars

Detailed assessment of commitment and reporting across each transformation pillar

Cut Operational Emissions
Pillar 1

Cut Operational Emissions

Leading

Commitment

95% Scope 1&2 reduction by 2027 (accelerated from 2030), Net Zero by 2050 - SBTi validated

  • 95% Scope 1&2 reduction by 2027 (originally 2030 target)
  • Net Zero across entire value chain by 2050
  • 96% renewable electricity achieved
  • Phase out fossil fuels in testing processes

Progress & Evidence

57% Scope 1&2 reduction achieved vs 2020 baseline - 3 years ahead of schedule

  • Scope 1: 16,113 tCO₂e (2024)
  • Scope 2: ~5,000 tCO₂e market-based (2024)
  • Operational intensity: 3.6 tCO₂e/€M (best in class vs GEA 5.9, Wärtsilä 7.4)
  • 96% renewable electricity across operations
Leading - 57% achieved, on track to hit 95% target by 2027
Decarbonize Value Chain
Pillar 2

Decarbonize Value Chain

Secondary Impact AreaAdvancing

Commitment

50% Scope 3 reduction by 2030 through product efficiency and low-carbon materials

  • 50% Scope 3 reduction by 2030 (vs 2020 baseline)
  • Engage suppliers on low-carbon steel and copper
  • Concept Zero™ products with fossil-free materials
  • SSAB partnership for fossil-free steel

Progress & Evidence

Scope 3 dominated by Use of Sold Products (96.8%) - addressing through product efficiency

  • Total Scope 3: 49.5M tCO₂e (2024)
  • Use of Sold Products: 47.96M tCO₂e (96.8%)
  • Purchased goods & services: 1.37M tCO₂e (2.8%)
  • Concept Zero™: 39% embodied carbon reduction per unit
Challenging - absolute Scope 3 rose 8.7% due to sales growth, but intensity improving
Build & Scale Solutions
Pillar 3

Build & Scale Solutions

Primary Impact AreaLeading

Commitment

Products ARE the climate solution - enabling 50 MtCO₂e avoided annually through energy efficiency

  • 50 MtCO₂e avoided annually (2024 data)
  • 100 GW energy capacity saved globally
  • Plate heat exchangers: up to 5x more efficient than shell-and-tube
  • Industrial heat pumps: 6.6 MtCO₂e avoided, 29 TWh saved

Progress & Evidence

Efficiency Multiplier: For every tonne emitted, one tonne avoided vs baseline technology

  • Counterfactual: Standard tech would emit ~99 MtCO₂e vs Alfa Laval's 49 MtCO₂e
  • PHE in petrochemicals: potential 28 MtCO₂e avoided globally
  • Preem refinery: 14,600 tCO₂e/year saved at single site (+45% energy recovery)
  • Data center heat recovery: 95%+ energy utilization vs standard 40%
THIS IS ALFA LAVAL'S STORY: Their products halve the carbon footprint of every application
Mobilize Finance & Investment
Pillar 4

Mobilize Finance & Investment

Advancing

Commitment

Sustainability-linked executive compensation and green financing framework

  • Executive LTI: 50/50 financial and sustainability targets
  • EMTN program for potential green bond issuance
  • Revolving credit facility with sustainability linkage
  • Climate KPIs integrated into investment decisions

Progress & Evidence

Strong governance linking executive pay to Scope 1&2 reduction targets

  • 50% of Long-Term Incentive tied to sustainability targets
  • Internal carbon pricing considerations
  • Green financing framework in place
  • Climate risk integrated into financial planning
Advancing - strong governance, room for more green financing
Shape Policy & Narrative
Pillar 5

Shape Policy & Narrative

Leading

Commitment

First Movers Coalition member, advocating for carbon pricing and energy efficiency standards

  • First Movers Coalition: committed to near-zero steel and aluminum
  • COP29 signatory calling for bold energy efficiency action
  • SSAB partnership for fossil-free steel supply chain
  • Boliden partnership for low-carbon recycled copper

Progress & Evidence

Active advocate for policies that drive demand for efficient heat transfer technology

  • First Movers Coalition member since 2023
  • COP29 energy efficiency advocacy
  • Renewable Hydrogen Coalition member
  • Public support for carbon pricing and efficiency standards
Leading on industry coalitions and policy advocacy

The Efficiency Enabler

Alfa Laval's products halve the carbon footprint of every application they serve. For every tonne of energy consumed by their products, one tonne is avoided compared to standard technology.

The Efficiency Enabler

Alfa Laval's products halve the carbon footprint of every application they serve. For every tonne of energy consumed by their products, one tonne is avoided compared to standard technology.

🏢
Annual Avoided Emissions
Products vs standard shell-and-tube technology
~50 Million tCO₂e/year
50% less
☀️
Counterfactual Baseline
If customers used standard technology instead
~99 MtCO₂e (vs 49M actual)
Halved
Industrial Heat Pumps
Waste heat recovery replacing gas boilers
6.6 MtCO₂e/year, 29 TWh saved
Energy
🌬️
Global Energy Capacity
Total energy capacity saved by Alfa Laval products
100 GW saved globally
Scale
Project Multiplier Range
50x

Alfa Laval's climate projects achieve multipliers ranging from 50x(project avoided emissions vs. Alfa Laval's total operational footprint of ~49.6 Million tCO₂e (2024)).

Impact Ratio Formula: Handprint ÷ Footprint = Multiplier. The handprint is "the reduction of the carbon footprint of others" (VTT Guide, p.11). A 10x multiplier means for every tonne emitted, the company enables 10 tonnes avoided for customers.

View Full Methodology & Scientific References

Company Details

Legal entity information and industry classification

Company Details

Legal Entity Name
Alfa Laval AB
Entity Type
Large Corporate
GICSIndustry Classification (GICS)
Industrial Machinery
GLEIFLegal Entity Identifier (LEI)
549300UCKT2UK88AG251

Entity identifiers sourced fromGLEIFGLEIF,WikidataWikidataandLinkedInLinkedIn

Industry Classification Hierarchy

GICS

GICS Classification

Global Industry Classification Standard (MSCI/S&P)

Sector
Industrials
20
Industry Group
Capital Goods
2010
Industry
Machinery
201060
Sub-Industry
Industrial Machinery & Supplies & Components
20106020

GICS® is a registered trademark of MSCI Inc. and S&P Global Inc.

NACE Rev. 2.1 Classification

EU Statistical Classification of Economic Activities

Section
Manufacturing
C
Division
Manufacture of machinery and equipment n.e.c.
28

NACE Rev. 2.1 is the statistical classification of economic activities in the European Union.

Sources & References

Data sources and documentation supporting this profile

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