We’re committed to being an ethical, value-based corporate citizen operating fairly and legally in every market.
Sustainability governance
Sustainability governance starts with the Board of Directors. From there, it flows through Group Management, our Sustainability Council, and into group functions and divisions.
Sustainability Council
Made up of nine senior leaders representing Grundfos’ group functions and divisions, the Sustainability Council meets six times a year to follow up on performance and key initiatives. They’re responsible for ensuring progress on goals and targets, aligning our commitment to our sustainability framework and sustainability standards across our organisation.
KPIs and reporting
Sustainability KPIs are regularly monitored by the Sustainability Council, Group Management and the Board of Directors, with quarterly progress reports shared internally. Group Finance and Group Sustainability ensure data quality, with oversight from the Audit Committee.
Our aim for sustainability data and reporting is to be as robust, coherent and well documented as our financial reporting. To achieve this, we have introduced several new processes, including:
- Assigning responsibility for all sustainability data gathering to Group Finance
- Developing our sustainability reporting manual
- Implementing a new sustainability data gathering system
Executive remuneration
Executive remuneration is tied to our sustainability performance. Two out of six evenly rated KPIs in the Grundfos executive short-term incentive programme are linked to sustainability goals (employee motivation and CO₂ emission reduction in line with our net-zero commitment).
Sustainability goals also account for 25% of the executive long-term incentive programme, with three-year programmes for Scope 1 & 2 and Scope 1, 2 & 3 CO₂ emission reductions introduced in 2022 and 2023 respectively.
Human rights
Our work with human rights is an ongoing process, and our human rights due diligence programme ensures that we respect and advance human rights.
Our commitment to respect Human Rights is integrated and communicated across the organisation through our values, group policies and our Code of Conduct.
Code of conduct
We believe that honesty and integrity are universal languages that align with our core values.
The Code of Conduct applies to all employees of Grundfos in all positions and in all countries. It’s our common reference point for understanding the core elements of our values, policies, ethical principles, and legislation.
Read the Code of Conduct and learn more about how we do business.
Supplier Code of Conduct
We work with suppliers along the global supply chain to ensure they comply with our standards. Our focus is on cooperation, accountability and sustainability audits.
Just as we stipulate standards of ethical practice for ourselves in a formal Code of Conduct, our Supplier Code of Conduct sets out what we require for all of our suppliers.
Code of Conduct Governance
Our Code of Conduct is supported by a strong Code of Conduct Governance Framework. Its role is to support and facilitate the overall understanding of our Code of Conduct along with our compliance, which is rolled out by the executive leadership to each individual employee.
The Grundfos Ethics Committee, an independent body of executive managers appointed by Group Management, is the core element of the framework. Other than continually monitoring our compliance with the Code of Conduct, the Ethics Committee is also responsible for the Grundfos whistle-blower system which provides employees, board members, and third parties cooperating with Grundfos (such as suppliers, advisers, consultants, business partners, etc.) the means to report suspected breaches of the Code of Conduct. We’re committed to conducting business based on honesty and integrity.
Approach to taxes
We see taxes as an essential part of a well-functioning society. We recognise that taxation is a tool to help financing the achievements of the UN Sustainable Development Goals. Acting as a responsible citizen, we strive to ensure a fair and reasonable allocation of the group profit in the jurisdictions/communities where Grundfos is present as well as being in compliance both for direct and indirect taxes.
Governance in action
To ensure a culture of honesty and integrity reaches employees and suppliers in every corner of Grundfos, a range of initiatives promote good governance across the organisation. Here are just some examples of how our commitment translates into practice:
Meet our leadership
CEO Poul Due Jensen and Grundfos Group Management, together with the Board of Directors, are responsible for running and developing our business.
Explore our sustainability journey
Discover more about our initiatives to combat climate change and improve quality of life for people, and keep track of the results in our latest Sustainability Report.