AVK CSR 2023-24 web - Flipbook - Page 18
OUR RISKS
AND OPPORTUNITIES
All companies face risks and opportunities. For a company
to grow, making the right choices at the right time is
crucial. As an industrial Group of companies with sales
in many market segments and all over the world, AVK
is relatively resilient to fluctuations in individual markets.
Furthermore, customer relationships are long-lasting and
provide additional stability to AVK’s business.
The general development of the global
economy presents both opportunities and
risks. This includes political decisions regarding
infrastructure investments, especially in the
water sector.
The global economy
The global economy has been affected by
several factors in the past years, and it is
expected that these factors will continue to
have an impact on the economy in the coming
years. The global supply chain crisis, initially
triggered by the COVID-19 pandemic and
further exacerbated by ongoing geopolitical
conflicts, has significantly driven up costs,
heavily affecting the financial outcomes of many
projects. Supply chains have stabilised, but
subsequent inflation and higher interest rates
have had a negative impact on investment in
most markets. There is still much uncertainty
on the general economic development, but we
have seen prices stabilise and partly reduce in
the last year, and we expect a more positive
development for our markets in the coming
year helped by lower interest rates. Geopolitical
conflicts and new governments in many of
the important markets for AVK can impact our
business.
We see increased protectionism with trade
barriers and political demands for local supply
chains. For AVK, this means further investments
in local manufacturing and supply chains, but
overall, we are well positioned with our global
network of companies and manufacturing
presence in most major markets.
18 | AVK Sustainability report 2023/2024
The Group’s products hold substantial longterm potential, driven by the growing need
for infrastructure investments in the water,
wastewater, and energy sectors, particularly
across Asia, Africa, and South America. An
essential prerequisite for a safe supply of clean
drinking water and less water waste is the use
of quality products in the distribution network.
Here, AVK has an advantage with our diverse
product portfolio.
initiatives related to sustainability are governed
by the Executive Directors and managed by
a dedicated Group Sustainability and ESG
function.
Many developed markets also experience
significant water wastage, leading to both water
loss and increased energy costs for pumping.
The increasing focus on sustainability and
thus reduced energy consumption increases
the demands on the water supply and a
reduction in the loss rate from waterworks
to consumer. Therefore, there is a need
for continued investment in renovating and
improving the water supply. Likewise, there will
be an increasing focus on intelligent products
for water supply (Smart Water Systems) that
ensure better monitoring and control of the
distribution network.
We want to be a responsible and credible
company that balances economic,
environmental, and social matters. This is
mirrored in our Sustainability Policy.
Organisational development
The AVK Group consists of more than 100
companies that largely act as independent
entities, enabling the local companies to adjust
to local business.
In addition, through our Supplier Code of
Conduct, we have defined principles and
guidelines for environmental protection and
human rights compliance that our suppliers are
required to live up to.
At AVK, sustainability is an integral part of
our business and a key global focus for the
Group. This commitment is supported by
AVK Holding, reflected in our activities, and
reinforced through coordinated requirements
across all Group companies. The policies and
In this way, we constantly strive to be a
credible and ethically responsible partner for
our customers and suppliers, a supportive
workplace for our employees, and a responsible
actor towards all other stakeholders.
The AVK Sustainability Policy
Our global presence requires high ethical
standards and a strong coordination to
ensure that we act in the same way across all
countries.
Group Policies
AVK has established Group Policies that define
how the individual companies are to comply
with our sustainability efforts within the areas:
environment, social, and governance.
The policies are available in the Group’s
management system (QHSE) and
communicated to all companies in the Group.
