Climate Change Data

Grundfos Holding A/S

Climate Impact & Sustainability Data (2024)

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Modern Slavery
  • Human Rights
  • Environmental Abuses

Social Achievements

  • Launched a Human Rights Working Group.
  • Developed a new Code of Conduct e-learning course.
  • Translated human rights e-learning and guidelines into ten additional languages.
  • Conducted online workshops in more than fifteen countries to raise awareness of human rights policies.
  • Conducted 67 on-site audits and 87 online assessments of suppliers.
  • 31 non-compliant suppliers completed Corrective Action Plans (CAPs).

Governance Achievements

  • Updated Supplier Code of Conduct and contract templates.
  • 61.5% of supplier spend signed the Supplier Code of Conduct.
  • Introduced new reporting categories in the whistleblower system.

Climate Goals & Targets

Long-term Goals:
  • Initiate actions to gain better visibility and due diligence of sub-tier suppliers.
Medium-term Goals:
  • Follow up on action plans and activities recommended in our group-wide human rights risk & saliency assessment.
  • Revise our supplier human rights risk assessment tool.
Short-term Goals:
  • Continue to strengthen internal competencies on human rights and modern slavery risk.
  • Conduct additional HRIA at a production site and spot-check.
  • Develop action plans based on a global living wage benchmarking assessment.

Environmental Challenges

  • Risk of modern slavery in the supply chain, particularly sub-tier suppliers and high-risk industries (electronics, labor agencies).
  • Need for stronger monitoring and assessment processes for the indirect supply chain.
  • Some outsourced service workers earning below the recommended living wage.
  • Inconclusive documentation on policies for child and forced labor from some suppliers.
  • Lack of information on measures regarding sustainable procurement from some suppliers.
Mitigation Strategies
  • Human rights impact assessments (HRIAs) conducted in multiple countries.
  • Supplier audits (on-site and online) conducted by third-party and internal auditors.
  • Development of a human rights heatmap tool to assess supplier risk.
  • Corrective Action Plans (CAPs) implemented for non-compliant suppliers.
  • Living wage assessments conducted at ten Grundfos locations.
  • Collaboration with suppliers to improve performance and address non-compliance.
  • Training provided to suppliers on human rights and sustainability requirements.
  • Strengthened oversight and accountability mechanisms.

Supply Chain Management

Supplier Audits: 67 on-site audits and 87 online assessments in 2024

Responsible Procurement
  • Supplier Code of Conduct (SCoC)
  • UN Global Compact principles
  • Sustainability evaluation in supplier approval process
  • Responsible Minerals Initiative (RMI) tool

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights (UNGPs), OECD Guidelines for Multinational Enterprises, International Labour Organization (ILO) standards, UK Modern Slavery Act 2015, Australia’s Modern Slavery Act 2018, Norwegian Transparency Act 2022, Canada’s Fighting Against Forced Labour and Child Labour in Supply Chain Act, German Supply Chain Act (LkSG)

Certifications: ISO 14001, ISO 45001