Alfa Laval’s 2025 Capital Markets Day: Driving Sustainable Development and Industrial Innovation

Overview

Alfa Laval’s upcoming Capital Markets Day on November 24, 2025, will highlight the company’s leadership in decarbonization and industrial innovation. The event, hosted at Alfa Laval’s new Flemingsberg site in Sweden, will emphasize the company’s strategic innovation and ambitious sustainability targets, aligning closely with the United Nations Sustainable Development Goals (SDGs).

Accelerating Sustainability: From Net Zero to Global Impact

Alfa Laval has advanced its net zero target for Scope 1 and 2 emissions to 2027, three years ahead of its original 2030 goal, demonstrating a strong commitment to SDG 13 (Climate Action). This acceleration is supported by investments in renewable energy, energy-efficient processes, and a global shift away from fossil fuels.

The company’s impact extends beyond its operations by enabling other industries to decarbonize. Key initiatives include:

• Ammonia Fuel Supply System (FCM Ammonia): Contracted for seven new LPG/ammonia carriers, this technology supports the maritime industry’s transition to low-carbon fuels, contributing to SDG 9 (Industry, Innovation, and Infrastructure) and SDG 14 (Life Below Water).
• Acquisition of Fives Cryogenics (€800 million): Enhances Alfa Laval’s capabilities in cryogenic heat transfer technologies essential for hydrogen production and LNG storage, supporting SDG 7 (Affordable and Clean Energy) and SDG 12 (Responsible Consumption and Production).

Innovation-Driven Growth: A Pipeline of High-Impact Technologies

Alfa Laval’s innovation strategy fuels both growth and ESG leadership, addressing multiple SDGs through the following initiatives:

1. Food Innovation Center in Copenhagen: Tackling the UN’s projected 70% increase in global food demand by 2050, this center develops technologies to reduce waste and energy consumption in food production, advancing SDG 2 (Zero Hunger) and SDG 12.
2. NRG Marine Acquisition: Ultrasonic anti-fouling systems reduce vessel fuel consumption by up to 15%, directly supporting maritime decarbonization and SDG 13.
3. Biofuel Contracts: A SEK 350 million agreement to supply HVO pre-treatment technology for Europe’s largest biofuel facility promotes sustainable aviation fuel (SAF) production, aligning with SDG 7 and SDG 13.

These initiatives form a cohesive strategy targeting markets where sustainability and efficiency are critical. Alfa Laval’s 2024 sales reached SEK 66.9 billion, a 5% year-on-year increase, with a proposed dividend of SEK 8.50 per share, reflecting financial resilience alongside sustainability commitments.

Investment Case: Long-Term Value in a Transition Economy

Alfa Laval’s dual focus on operational sustainability and customer-driven innovation presents a compelling investment opportunity, supported by the following factors:

1. Decarbonization Tailwinds: Global green energy infrastructure spending is projected to reach $1.8 trillion annually by 2030 (IEA). Alfa Laval’s heat transfer, separation, and fluid-handling solutions are critical enablers in this transition, supporting SDG 7 and SDG 13.
2. Scalable Partnerships: Collaborations with companies such as SSAB (low-carbon steel) and Outokumpu demonstrate cross-industry synergies that reduce emissions and create new revenue streams, advancing SDG 9 and SDG 17 (Partnerships for the Goals).
3. Strong Balance Sheet: Robust cash flow and disciplined capital allocation, exemplified by the Fives Cryogenics acquisition, indicate management’s ability to execute growth strategies while maintaining shareholder returns.

Risks and Considerations

• Macroeconomic challenges, including potential slowdowns in industrial demand, may impact growth.
• Execution risks related to ambitious sustainability and innovation targets exist but are mitigated by Alfa Laval’s proven track record, such as achieving Scope 1 and 2 net zero targets three years early.

Conclusion: A Leader in the Transition to a Sustainable Economy

Alfa Laval’s 2025 Capital Markets Day is expected to reinforce its role as a strategic partner for industries undergoing decarbonization. With a clear trajectory toward SEK 100 billion in sales by 2030 and innovations addressing critical sustainability challenges, the company is well-positioned to capitalize on structural shifts in energy, food, and transport sectors.

For investors prioritizing ESG leadership combined with financial growth, Alfa Laval represents a strong candidate. Its historical outperformance relative to peers and expanding addressable markets underscore its potential as a leader in the global transition to a low-carbon economy, directly contributing to multiple Sustainable Development Goals.

Jeanna Smialek’s analysis highlights the importance of aligning investment strategies with global sustainability objectives. Alfa Laval exemplifies how pioneering solutions to environmental challenges can drive long-term success.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • Focus on renewable energy investments and energy-efficient processes.
   • Development of technologies like ammonia fuel supply systems and cryogenic heat transfer for hydrogen production and LNG storage.
2. SDG 9: Industry, Innovation and Infrastructure
   • Innovation-driven growth through new technologies and acquisitions (e.g., Fives Cryogenics, NRG Marine).
   • Development of advanced industrial solutions to support decarbonization.
3. SDG 12: Responsible Consumption and Production
   • Food Innovation Center addressing food waste and energy use reduction in food production.
   • Scaling sustainable aviation fuel (SAF) production via biofuel contracts.
4. SDG 13: Climate Action
   • Accelerated net zero targets for Scope 1 and 2 emissions.
   • Solutions enabling decarbonization of maritime shipping and other industries.
5. SDG 17: Partnerships for the Goals
   • Collaborations with companies like SSAB and Outokumpu to reduce emissions and foster cross-industry synergies.

2. Specific Targets Under Those SDGs

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.3: Double the global rate of improvement in energy efficiency.
2. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
3. SDG 12: Responsible Consumption and Production
   • Target 12.3: Halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains.
   • Target 12.2: Achieve sustainable management and efficient use of natural resources.
4. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into policies, strategies, and planning.
   • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation.
5. SDG 17: Partnerships for the Goals
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships.

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 7 Indicators
   • Proportion of energy from renewable sources in total final energy consumption (Indicator 7.2.1).
   • Energy intensity measured in terms of primary energy and GDP (Indicator 7.3.1).
2. SDG 9 Indicators
   • CO2 emission per unit of value added (Indicator 9.4.1).
   • Proportion of industries using clean and environmentally sound technologies (implied through Alfa Laval’s technology adoption).
3. SDG 12 Indicators
   • Global food loss index (Indicator 12.3.1).
   • Material footprint, material footprint per capita, and material footprint per GDP (Indicator 12.2.1).
4. SDG 13 Indicators
   • Greenhouse gas emissions per unit of GDP (Indicator 13.2.2).
   • Number of countries with climate change strategies (implied through Alfa Laval’s net zero targets and climate action integration).
5. SDG 17 Indicators
   • Amount of financial and technical assistance committed to sustainable development partnerships (implied through acquisitions and collaborations).

4. Table: SDGs, Targets and Indicators

Source: ainvest.com