AVK sustainability report 2023 with links A4 - Flipbook - Page 14
OUR RISKS
AND OPPORTUNITIES
All companies face risks and opportunities. For a company to grow, it is crucial to make
the right choices at the right time. As an industrial Group of companies with sales in
many market segments and across continents, AVK is relatively resilient to fluctuations in
individual markets. 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, including
political decisions on infrastructure investments,
especially in the water sector.
The global economy
The global economy has been affected by
several factors in the past year and it is
expected that these factors will continue to have
an impact on the economy in the coming years.
The Covid-19 pandemic and the subsequent
crisis in global supply chains, further impacted
by the war in Ukraine, had a significant impact
on prices and thus the funding of many
projects. Supply chains have stabilised, but
subsequent inflation and higher interest rates
have had a negative impact on investment in
most markets. The economy is expected to
continue to be affected by this in the coming
year, as well as increased uncertainty due to
geopolitical conflicts.
We see increased protectionism with trade
barriers and political demands for local supply
chains. For AVK, this means further investments
in local production and supply chains, but
overall, we are well positioned with our global
network of companies and manufacturing
presence in most major markets.
There remains significant long-term potential
for the AVK’s products, as there is a strong
need for infrastructure investments in the water,
wastewater and energy sectors in Asia, Africa,
14 | AVK Sustainability report 2022/2023
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 is strong
with its diverse product portfolio.
There is also very high water wastage in many
developed markets, resulting in both lost water
and additional energy costs for pumping water.
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.
Organisational development
The AVK Group consists of over 100 companies
that largely act as independent entities, which
gives AVK a fast adaptability and enables local
adjustments to our business and organisation.
In our efforts to make sustainability an integral
part of our business, we have chosen to
take a centrally coordinated and systematic
approach in focus areas. Therefore, in 2021 we
established a global Sustainability Committee
and in 2022 we established a central
sustainability department. During 2023, we
have established an internal network group that
focuses on CO2 reduction and circular economy,
among other things.
The AVK Sustainability Policy
Our global presence requires high ethical
standards and actions of our organisation.
We want to be a responsible and credible
company that balances economic,
environmental, and social matters. This is
mirrored in our Sustainability Policy.
Group Policies
AVK has established group policies that define
how the individual companies are to comply
with our corporate social responsibility in the
areas of employees, environment, ethics, safety,
and quality.
The policies are available in the AVK’s
quality management system (QEMS) and
communicated to all companies in the Group.
In addition, through our Supplier Code of
Conduct, we have defined principles and
guidelines for environmental protection and
human rights compliance.
This way, we constantly strive to be a credible
and ethically responsible partner for our
customers, suppliers, and other stakeholders.
