Sustainability

Report
 1. Introduction
Table of contents

2. Environmental Impact
1. Introduction 4. Business Ethics About the report

This report provides a comprehensive overview of our activities and covers

04 CEO Letter 63 Quality, Product Compliance Grundfos Holding A/S and Grundfos Group including all subsidiaries, unless
otherwise noted.
05 2023 Key Achievements and Customer Safety
We have been publishing Sustainability Reports since 1999 and this is the
06 We are Grundfos 64 Business Conduct latest version, published 27 February 2024.

11 Sustainability Governance & Strategy 68 Sustainable Supply Chain Together with the Grundfos Annual Report, this report constitutes Grundfos'
UN Global Compact Communication on Progress (COP) and our CEO Water
71 Tax Governance Mandate Report. Our Sustainability Report ensures compliance with the
requirements of Section 99a of the Danish Financial Statements Act on
2. Environmental Impact

3. Social Impact
corporate social responsibility.

26 Climate 5. Assurance Data in this report covers the period between 1 January and 31 December
2023, unless otherwise noted. The report groups topics relevant to our
36 Water 75 Accounting Principles stakeholders into four main areas: introduction (governance), environmental
impact (environmental), social impact (social) and our business ethics.
39 Circular Business 79 Management’s Statement The basis for the restatement of previously reported data, relevant calculation
methodologies and data limitations are explained where applicable. We base
80 Assurance Report our reporting on the best available data. Methods and data collection are
maturing and improving, which is a development that will continue.
3. Social Impact
For further information or questions regarding the Grundfos Sustainability
43 Human Rights Report, reach out to us at [email protected].

46 Water Access For further information about Grundfos and sustainability,

4. Business Ethics
visit www.grundfos.com/sustainability.
49 Diversity, Equity and Inclusion
52 Learning and Talent Development
55 Health, Safety and Wellbeing
59 Employee and Community Engagement

Frontpage photo:
Grundfos' new office and lab
building in Bjerringbro, Denmark.
The building is designed to
minimise its carbon footprint.

5. Assurance
2 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 1. Introduction
2. Environmental Impact
3. Social Impact
Introduction

4. Business Ethics
04 CEO Letter
05 2023 Key Achievements
06 We are Grundfos
11 Sustainability Governance & Strategy

5. Assurance
3 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
CEO Letter

2. Environmental Impact
At Grundfos, we believe water is the net-zero target for 2050 approved by the We strive to provide transparency
most essential resource on the planet. Science Based Targets initiative (SBTi), and reliable data in our sustainability
Yet to realise its potential and transition and in 2023, we built on this milestone reporting. It is one of our core values to
to a water-secure, net-zero future, the by further developing a comprehensive be open and trustworthy: we say what
world faces several challenges. Amongst decarbonisation roadmap. Through we do, and we do what we say. By taking
these are the need to move more water collaboration with our customers, responsibility for our actions and working

3. Social Impact
while using less energy, increase our suppliers, and other partners across together, we contribute to solving the
resilience to the impacts of climate sectors, we will drive concerted action world’s most pressing sustainability
change, and improve access to water towards our ambitious net-zero target challenges in a better way. Through our
for all. These are global challenges and and live up to our purpose to pioneer commitments and actions, Grundfos is
Grundfos is committed to playing our solutions to the world’s water and climate taking a leading role in addressing these
part in solving them. challenges and improve the quality of life challenges. We continue to support the
Water is at the core of our business, for people. UN Global Compact and recognise that
and we are guided by our principles of Improving the quality of life is critical to only together can we achieve our greatest
protecting, respecting and advancing Grundfos fulfilling its purpose. Grundfos ambitions and goals and solve the most

4. Business Ethics
the flow of water. These principles also recognises that respect for human urgent challenges of our time.
underpin our approach to products, rights plays a crucial role in creating a
solutions, innovation, and partnerships. workplace that promotes diversity, equity, Best wishes,
For example, reducing the amount of and inclusion (DE&I), as well as one
water needed in our own operations and that prioritises the health, safety, and
enabling our customers to better recycle wellbeing of our employees. Embedding a Poul Due Jensen
and reuse precious resources. human rights mindset into daily decision- Group President, CEO
Grundfos remains committed to making is not only the right thing to do, it
“At Grundfos,
achieving net zero in line with the Paris is also key to our success as a sustainable
we believe water
Agreement. In 2022, we became the first business and a way of contributing to the
is the most essential
company in the water sector to have its development of society.
resource on the planet.”

5. Assurance
4 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
2023 Key Achievements

2. Environmental Impact
9.5% 7% reduction 109% 7m
emissions in water increased PPA for people
reduction withdrawal take-back onshore wind reached
CLIMATE WATER CIRCULAR BUSINESS RENEWABLE ENERGY WATER ACCESS
Since the baseline year 2020, We reduced our water withdrawal 134,098 kg pumps returned for Grundfos has signed a power purchase In 2023, our sold pumps provided
Grundfos has reduced CO2e emissions by 7% compared to 2022, and reached recycle programme in 2023, agreement to cover 80% of Grundfos' basic water access to 2m people via
by 11.7%. Compared to 2022 we have 96% progress to our 2025 target. which is a 109% increase power consumption in the NGO partners and an estimated
reduced emissions by 9.5%. compared to 2022 figures. EU with renewable energy from 2025. 5m people through standard

3. Social Impact
sales operations.

Sustainability 25% DKK Employee

in leadership women 700,000 Motivation EcoVadis
remuneration leaders to Water2Life Score of 78 Gold medal

4. Business Ethics
GOVERNANCE DIVERSITY, EQUITY EMPLOYEE & COMMUNITY EMPLOYEE MOTIVATION SURVEY SUSTAINABILITY RATING
Implemented our new sustainability & INCLUSION ENGAGEMENT We reached our 2025 target for employee In 2023 we received an EcoVadis
scorecard and integrated total carbon In 2023, we continued to increase the DKK 700,000 donated by our motivation with the score of 78 in our gold medal placing Grundfos in the
emission reduction into executive and share of women leaders by one percentage employees and Grundfos to Water2Life 2023 employee motivation survey. top 5% of all rated companies.
senior leadership remuneration. point, approaching our 2025 target of programmes across the world.
27% women in leadership positions.

5. Assurance
5 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
2. Environmental Impact
19,937 65 158 4.3
Number of employees Number of countries Entities representing EBIT in billion DKK
the Grundfos Group

3. Social Impact
We are Saving water and energy
in water treatment

Grundfos Water treatment plays a pivotal role in

numerous industrial processes. As part of
Grundfos’ Group 2025 ambition, we have
efficiency and lower energy consumption,
and this is where we can drive significant
impact using our best-in-class technology
MECO has a global presence in
pharmaceutical water treatment owing
to its proprietary vapour compression

4. Business Ethics
Our purpose is to pioneer solutions to the world’s water and been on a journey to become a strong, and unique service capabilities. In recent technology, deep process knowledge and
climate challenges and improve quality of life for people. global water treatment solutions provider, years, Grundfos has expanded our portfolio experience, and proven ability to offer
Operating globally, supported by a team of close to 20,000 increasing our collective impact and taking of water treatment solutions by bringing reliable solutions to customers.
employees, Grundfos serves a wide range of applications on critical global challenges towards water new companies into the Grundfos Group:
across four divisions: Commercial Building Services, Domestic treatment and water reuse. We support Water Works has brought a
Building Services, Industry and Water Utility. Together, we industrial customers in becoming more Eurowater has a strong position in complimentary product portfolio with
provide our customers and end users with intelligent and sustainable and delivering on their water process and drinking water, providing a smaller capacity, high purity water
energy-efficient solutions to meet their everyday needs. and energy efficiency plans. We see many world class value proposition to especially systems and superior service capabilities
Starting with pumps 79 years ago, our product portfolio unexplored opportunities to enhance water our European customers. in California.
has diversified to also cover water treatment solutions
and technologies.

5. Assurance
6 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 1. Introduction
Our promise

2. Environmental Impact
To respect, protect
and advance the
flow of water

3. Social Impact
4. Business Ethics
5. Assurance
7 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Our values
We have six core values that guide our

2. Environmental Impact
behaviour in line with our purpose.

Sustainable Open & trustworthy Focused on people

3. Social Impact
Grundfos runs its business in a responsible and ever more In Grundfos, we do what we say, and we say Grundfos is our people. We develop the
sustainable way. We make products and solutions that help what we do. Our communication is open individual. Everyone in Grundfos has passion and
our customers save natural resources and reduce climate and honest among ourselves and with the potential. Everyone has the power to influence.
impact. We take an active role in the society around us. world around us. We put the facts on the Everyone must feel respected and valued.
Grundfos is a socially responsible company. We take care table – also when it is not pleasant.
of our people – also those with special needs.

4. Business Ethics
Independent Partnership Relentlessly ambitious
The main shareholder of Grundfos – now and in the Grundfos creates value through close In Grundfos, we never stop challenging ourselves
future – is the Poul Due Jensen Foundation. Profit is relations with customers, suppliers, and to create better solutions faster. We take pride in
a means to growth – not a goal in itself. We ensure a other stakeholders. We are a global company delivering premium quality in everything we do.
healthy financial foundation at all times. building on local entrepreneurship. We believe We show leadership and innovate the future.
that diversity drives innovation and growth.

5. Assurance
8 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
2. Environmental Impact
Our Four
Divisions

3. Social Impact
Commercial building services Domestic building services Industry Water utility

CBS serves a multitude of customers within DBS serves OEMs, distributors, installers, and The IND division delivers a wide range of premium WU provides intelligent, sustainable pumping

4. Business Ethics
commercial buildings services with reliable and homeowners with some of the world’s most quality products, solutions, and services based and solar-powered solutions aimed at optimising
high-technology products and solutions, as well energy-efficient pumps and solutions for domestic on pumping and water treatment systems. water management in groundwater and irrigation,
as a range of services, including energy and homes. DBS develops, produces, and sells smaller IND optimises industrial utilities and industrial clean water distribution, wastewater collection and
system optimisation. CBS works dedicatedly domestic pumps and solutions for single-family processes, covering areas such as water treatment transport, as well as water intake. Furthermore, the
to helping commercial buildings’ end users housing and residential buildings, serving six or water reuse, system integration, energy and division has dedicated a specific strategic business unit,
reach their water and climate ambitions, while domestic applications in heating, HVAC OEM, process optimisation, and liquid composition, as SafeWater, to transforming underserved communities
respecting, protecting and advancing the flow domestic hot water, boosting, drainage, and well as delivering value-adding digital solutions. through commercially viable and sustainable water
of water. wastewater. The DBS division aspires to offer The division helps industrial customers and end solutions in close collaboration with strategic partners.
homeowners the most attractive choices for users globally reach their water and climate WU is committed to transforming challenges into
sustainable homes and comfortable lives. ambitions while maximising their output. opportunities, pioneering innovation, and delivering
consistent value.

5. Assurance
9 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION
Grundfos Sustainability Framework

1. Introduction
Four Ambitions
Where we have
the greatest impact
1. Saving Energy 2. Saving Water 3. Circular business 4. Water access
Through smarter and Through the development Embedding circular principles Providing water
more efficient pump of water-efficient and throughout our business to people in need
technology water reuse solutions

2. Environmental Impact
Sustainability Differentiators
Where we go beyond

at Grundfos
stakeholder expectations

Operate on Advance a diverse workforce, Provide a safe and healthy

renewable energy inclusive culture and equal workplace, ensuring
opportunities staff wellbeing

Sustainability and a deep-rooted respect Fundamentals

Where we perform to

for people and planet has always been the highest levels of
professional
excellence
Own
footprint
Sustainable
supply chain
Customer
engagement,
Human rights
due diligence
Employee
motivation and
Community
engagement
Chemical
and product
branding and sales satisfaction compliance
at the core of our business.

3. Social Impact
Customer health Code of Public policy and Human Sustainability data Governance
and safety, marketing conduct socio-economic development and reporting
and labelling compliance and training

Sustainability remains ingrained in how the company the sustainability framework and initiatives across Taken together, our four sustainability ambitions set Saving water
Enabling end users to save water
operates and constitutes a fundamental component the business. Grundfos’ course in the ongoing development of our
through water reuse and water
in our 2025 business strategy. We continue to improve The framework outlines our four ambitions – products and solutions. efficiency.

4. Business Ethics
our approach to sustainability to ensure we manage saving energy, saving water, circular business and Importantly, our sustainability ambitions are fully
Water access
sustainability impacts across our value chain, address water access – which are the areas where we want aligned with the commitments we have made to Contributing to improve water ac-
the needs of our stakeholders, and continue to drive to take a leadership role and where we believe we international standards and regulatory frameworks cess for 300 million people in need.
positive social and environmental change in the areas have the greatest impact. such as the SBTi, the UN Global Compact and the Paris
where we operate. Next are our differentiators, where we aim to Agreement. We also recognise the value of the United Saving energy
deliver beyond the expectations of our stakeholders. Nations Sustainable Development Goals (UN SDGs). Enabling end users to save energy
by innovating and delivering smart
Grundfos’ sustainability framework Underpinning all of this, our fundamentals describe We have identified two SDGs where we have the pumps and new solutions.
Aligned with our 2025 business strategy, our the areas where we will perform at the highest level most positive impact through our operations and
Circular business
sustainability framework guides the approach we of professional excellence – from respect for human wider influence. These are Goals 6 (Clean water and
Developing towards a
take to sustainability across our operations. Our rights and a sustainable supply chain to sustainability sanitation) and 13 (Climate action). circular business.
Sustainability Council governs the implementation of governance, data and reporting.

5. Assurance
10 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION
We want our entire workforce to

1. Introduction
be engaged in sustainability. As a
result, we promote education on
sustainability matters through

Sustainability
our internal learning platform,
the Sustainability Toolbox.

Governance
This online, one-stop shop

2. Environmental Impact
for sustainability information
supports all our employees with

& Strategy
the integration of sustainability
across our organisation.

Through the voluntary training

available in the toolbox, our
Our approach to sustainability is strictly governed employees have access to the
most up-to-date information
to ensure that we deliver on our commitments about Grundfos’ approach to
across the business. Ultimately, this enables us sustainability.

to maximise our impact on the global transition

3. Social Impact
to an equitable, sustainable, and resilient future.

Our approach

Sustainability governance at Grundfos is anchored Grundfos’ sustainability strategy and allocating the include key subject matter experts and members of Grundfos’ key sustainability efforts. They lead the
within the Board of Directors and flows through Group appropriate resources to ensure its delivery. It is also functional leadership to ensure that progress across all implementation of our Sustainability Framework

4. Business Ethics
Management and our Sustainability Council into Group responsible for signing off targets and associated areas is reviewed to identify any areas for improvement. and Ambitions, and advise the Sustainability Council
functions and Divisions. initiatives to support the delivery of our strategy. The Council assesses and manages sustainability- through regular updates on progress made towards
related risks, impacts and opportunities associated the achievement of key targets. Group Sustainability
Board of Directors – Oversees strategy and Sustainability Council – This is composed with the delivery of the strategy. Progress and key risks, furthermore oversee the alignment with key global
its implementation. The Audit Committee oversees of nine senior leaders, representing Grundfos’ Group impacts and opportunities are communicated to Group regulations, standards and frameworks such as the
progress on sustainability ambitions and KPIs as well functions and divisions. Chaired by our Vice President of Management, with recommendations on the strategic EU Corporate Sustainability Reporting Directive (EU
as Grundfos' compliance with sustainability-related Sustainability, External Relations, and Communications, direction of the sustainability strategy. CSRD) and the Science Based Targets initiative (SBTi).
legal and reporting requirements. the Council meets six times a year to coordinate and Group Sustainability also act as subject matter experts,
align on Grundfos’ sustainability agenda, with members Group Sustainability – At the foundation providing support to Group functions and divisions
Group Management – Group Management being responsible for ensuring that progress is made of our sustainability governance structure is Group on planning and executing roadmaps, initiatives and
is responsible for setting the strategic direction of towards the goals and targets. The Council meetings Sustainability, which comprises functional leads for activities in line with Grundfos’ strategy.

5. Assurance
11 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Spotlight: Sustainability Performance
Our progress in 2023 in Executive Remuneration
In Grundfos, we are firmly committed to our sustainability strategy. “Climate and employee motivation

2. Environmental Impact
We continuously work to improve our processes and
We have therefore linked the achievement of key sustainability are integrated in our remuneration
accountability to ensure we keep pace with the ever-
targets to our executive and senior leadership remuneration. Dating schemes to encourage behaviour
changing world around us. In 2023, we refined and
back to 2017, our Short Term Incentive programme was designed to and decisions that align with our
strengthened our focus within sustainability by reinforcing
link executive remuneration to our Sustainability Index, a KPI that purpose and with our long-term goals.
the governance structure for each of our four ambitions
acted as a single point of measurement for the performance of a We are accountable for our sustainability
and for our key sustainability initiatives to ensure effective
broad selection of Grundfos’ social and environmental metrics. performance in the same way as we are
progress, impact and accountability.
From 2023, we changed the sustainability KPIs in executive for our financial performance.”
In 2023, we have taken the first steps towards aligning
remuneration to focus on employee motivation and CO2 emission
with the EU CSRD. We assessed the overall maturity of our Mikael Geday
reduction in line with our Net-Zero commitment. These KPIs are
sustainability governance and reporting setup, completed Group Executive Vice President, Chief Financial Officer
included as part of Grundfos’ executive and senior leadership
our first double materiality assessment, and undertook an
remuneration programme for short-term and long-term incentives.
in-depth gap analysis of our CSRD-reporting readiness.

3. Social Impact
2023 was also the year for Grundfos to conduct our first
EU Taxonomy eligibility assessment.
ESG in executive Short Term Incentive
To ensure alignment and effectiveness, the Council
ESG-component Weight Target 2023 Result Bonus (Yes/No)
meeting participant group has also been extended to
include key subject matter experts and members of Reduction of CO2 emissions (Scope 1, 2 and 3) 17% Annual reduction target based on long 200%* of target Yes
term commitment.
functional leadership. By covering the full spectrum of
sustainability topics, from human and labour rights to Employee Motivation and Satisfaction (EMS) 17% Score in Employee Engagement 150%* of target Yes
Survey. +1 compared to 2022.
emissions and compliance, the Sustainability Council is
the cross-functional governance body ensuring alignment Total weight of ESG-components in executive STI 33% 2 of 6 evenly rated KPIs in the Grundfos executive STI-programme
are linked to sustainability goals.
of efforts and monitoring of progress towards our

4. Business Ethics
sustainability goals.
Our sustainability KPIs are monitored by the ESG in executive Long Term Incentive
Sustainability Council, Group Management and the Board ESG-component Weight Target 2023 Result Bonus (Yes/No)
of Directors on an ongoing basis with progress reports 2022-2024 Reduction of CO2 emissions 25% Accumulated 2022, 2023 and 2024 reduction, N/A** N/A**
shared internally on a quarterly basis. (Scope 1 and 2) based on long term commitment.
2023-2025 Reduction of CO2 emissions 25% Accumulated 2023, 2024 and 2025 reduction, N/A** N/A**
(Scope 1, 2 and 3) based on long term commitment.

* The target is achieved at 100%. 200% is the highest performance result that will trigger incentive payout.
** 3 year programmes. First one established in 2022. Results will be final after the last year of each programme.

5. Assurance
12 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 INTRODUCTION

1. Introduction
Reporting on progress

We adopt and follow standards and guidelines that support the strengthening of
our sustainability performance and encourage and provide transparency on progress.

2. Environmental Impact
CDP logo guidelines

The CDP logo is available:

When CDP works in partnership with an organization, for the duration

of the partnership or relating to a particular project.
To accompany communications to indicate that a company publicly
takes part in the CDP process, as a signatory or reporting
organization.
When an organization buys a service from CDP (eg Reporter Services,
Ecovadis allows us and our customers to
Supply Chain membership). Grundfos is rated C with CDP Our SBTi approved Net-Zero Our focus is on SDGs #6 and #13
get a detailed
When the business insight
is accredited into
by CDP our own
to provide progress
services aligned Climate based on 2022 data. Target sets the direction for where we strive to contribute to

3. Social Impact
with our missionwithin
for theenvironment,
period that they labour and human
are accredited. We continue to aim for an A. our climate actions. positive development.
rights,
To indicate that ethicsisand
a company sustainable
in the procurement.
current reporting year’s A List.
Grundfos holds an Ecovadis Gold certificate.
The logo must never be recreated. The full color version must only be
applied to white backgrounds. A white only version is supplied for use on
coloured backgrounds. The primary logo features our strapline
‘Disclosure Insight Action’. Please use this version wherever possible.

To ensure the CDP logo maintains impact, especially in busy graphic

environments, a defined clear space must be maintained around it
(please see diagram).

4. Business Ethics
Always ensure the logo is prominently positioned. In situations where it is
necessary to feature it at a smaller size, please do not apply it at a width
less than 25mm.

We continue to support the As part of Grundfos’ SBTi-validated Net-Zero target, Grundfos is committed to supporting
October 2022
UN Global Compact and to we have also signed onto the Business Ambition for 1.5 the transition toward a net-zero future.
report on progress accordingly. Campaign by UN Global Compact which continues to This includes transforming our own
call on companies to set ambitious emissions reductions fleet of vehicles to run on electricity.
targets in line with the Corporate Net-Zero Standard.

5. Assurance
13 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION Our four divisions

1. Introduction
Impacts Along Our Value Chain

Commercial Domestic Industry Water Utility

Building Building
Services Services

2. Environmental Impact
1. Design & product development 2. Purchasing 3. Operations
We focus on developing products and solutions We strive to reduce negative impacts on people and We work continuously to reduce our carbon
that enable energy and water efficiency, as well the planet in close collaboration with our suppliers. and water footprint by improving operational
as circularity and reduced material use. efficiencies, while ensuring the best conditions for
our employees’ health, safety, and wellbeing.

3. Social Impact
8. End of life 4. Sales
We collect end-of-life products through our Take We are transparent with our customers
Back programme with the ambition of reducing about our products and ensure the most
waste through re-manufacturing and reuse. suitable solutions for their needs.

6. Use
99% of our emissions come from the use-phase of our products.
We enable our end users to save energy and water through

4. Business Ethics
smarter and more energy- and water-efficient solutions, while
maintaining the highest level of product safety.

7. Service 5. Distribution
Through our global service programme, We engage in collaborative initiatives to minimise the impact
we optimise the performance of our products of our logistics, including a focus on reusable packaging,
and solutions as well as maintain and prolong reducing resource consumption and CO2 emissions.
the life of existing installations.

5. Assurance
14 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Grundfos Double
Materiality

2. Environmental Impact
Assessment
In 2023, we have started preparing for EU CSRD,
conducting our first double materiality assessment
and EU Taxonomy eligibility assessment.

3. Social Impact
Our approach

The double materiality assessment is one of the external stakeholders, but have external perspectives
first steps in the preparation for the EU Corporate represented through findings from desktop research
Sustainability Reporting Directive, on which Grundfos and Grundfos' own subject matter experts.
is required to report from financial year 2025. Our Since 2023 was our first time performing a double
assessment is primarily guided by the EU CSRD and the materiality assessment, we this year prioritised to get
European Sustainability Reporting Standards (ESRS) and the input from our internal subject matter experts and

4. Business Ethics
related topics. leadership.
At completion of the double materiality assessment,
we conducted a gap assessment, mapping and ESRS topics identified as material to Grundfos
outlining the most significant gaps based on the results Building on input from Grundfos' subject matter
from the double materiality assessment. In 2024, we experts as the foundation of the 2023 double
will develop roadmaps to ensure closing of these gaps. materiality assessment, all relevant ESRS topics have
More than 30 internal leaders and experts were been reviewed according to their associated impacts,
involved in identifying, defining and scoring impacts, risks, and opportunities and have been assessed in
risks and opportunities. A clear methodological terms of materiality. The scale used for scoring impact
choice has been made for the 2023 double and financial materiality is aligned with the scales used
materiality assessment, to not directly include in Grundfos’ Enterprise Risk Management.

5. Assurance
15 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Double Materiality
Process and Results

2. Environmental Impact
Input Assessment Validation Grundfos material topics
We have identified risks and opportunities within the categories listed below:

The double materiality Inside-out • Calibration with VP Group

Environmental Social Governance
assessment is based on: Assessment of the social and Sustainability, VP Financial
environmental impact Grundfos Planning & Analysis, Head Climate change mitigation Own workforce equal rights and Business conduct and

3. Social Impact
EU CSRD standards and topics. has on its surroundings based of Group Enterprise Risk and adaptation and Grundfos opportunities, working conditions Grundfos' ability to manage
on likelihood and severity of Management & Insurance, ambition to positively impact and other work-related rights that the risks related to corruption,
Internal subject matter experts’ an impact. Head of Strategic Consulting. climate challenges and meet are material to fostering a safe and  bribery and protection of
insights. our net-zero target. inclusive workplace. whistleblowers, as well
When scoring severity, scale, • Calibration with as balancing political
Human Rights Impact scope and irremediability have Sustainability Council, Water sustainability and Workers in the value chain equal engagement and lobbying
Assessments. been considered. subject matter experts and water management. rights and opportunities, working activities.
Group Sustainability. conditions and other work-related
ESG trends. Outside-in Resource inflows and outflows rights including risks related to

4. Business Ethics
Assessment of the financial risks • Validation by Sustainability and Grundfos’ ability to seize child and forced labour and conflict
and opportunities to Grundfos Council. opportunities. minerals.
business.
Pollution to water and soil Consumers' and end users’ personal
Scoring of the financial impact is including substances of safety and Grundfos’ ability to
based on likelihood and severity. concern. manage related risks.

Affected communities and Grundfos'

ability to engage with and positively
impact communities.

5. Assurance
16 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
EU Taxonomy
Eligibility Assessment
EU Taxonomy results for the fiscal year 2023
The Taxonomy Regulation lists activities under six objectives.
Non-eligible
Climate objectives cover climate change mitigation and
Eligible
climate change adaptation, whereas environmental objectives1

2. Environmental Impact
encompass sustainable use and protection of water and marine Turnover OPEX CAPEX
52.7% 42.3% 38.2%
resources, transition to a circular economy, pollution prevention
and control, and protection and restoration of biodiversity
47.3 57.7 61.8
and ecosystems.2 According to the EU Taxonomy, an economic
activity is considered sustainable if it contributes significantly
to at least one of these objectives and does not significantly
compromise another environmental objective.
Among our sustainability goals, climate change mitigation, 52.7 42.3 38.2
reducing water use, and the transition to a circular economy are
of particular importance. We therefore examined the activities
defined by the EU Taxonomy, in particular the ones contributing
3.1. Manufacture of renewable technologies: 0.8% 3.1. Manufacture of renewable technologies: 0.6% 3.5. Manufacture of energy efficiency equipment for buildings: 14.9%
to the aforementioned three objectives, and assessed which of

3. Social Impact
3.5. Manufacture of energy efficiency equipment for buildings: 32.0% 3.5. Manufacture of energy efficiency equipment for buildings: 28.4% 3.6. Manufacture of other low carbon technologies: 2.9%
these activities are carried out by Grundfos. 3.6. Manufacture of other low carbon technologies: 12.5% 3.6. Manufacture of other low carbon technologies: 8.6% 5.2. Sale of spare parts: 0.4%
5.1. Repair refurbishment and remanufacturing: 0.9% 5.1. Repair refurbishment and remanufacturing: 0.4% 7.1. Construction of new buildings: 14.4%
5.2. Sale of spare parts: 5.6% 5.2. Sale of spare parts: 4.1% 7.2. Renovation of new buildings: 3.1%
Based on the preliminary eligibility assessment, the identified 7.3. Installation, maintenance and repair of energy efficiency 7.3. Installation, maintenance and repair of energy efficiency 7.3. Installation, maintenance and repair of energy efficiency equipment: 0.1%
equipment: 0.7% equipment: 0.2%
most relevant EU Taxonomy activities are: 7.4. Installation, maintenance and repair of charging stations for electric
9.3. Professional services related to energy performance of vehicles in buildings: 0.2%
buildings: 0.2% 7.6. Installation, maintenance and repair of renewable technologies: 1.8%

Climate change mitigation: 8.2. Data-driven solutions for GHG emissions reductions: 0.4%

• 3.1. Manufacture of renewable energy technologies

• 3.5. Manufacture of energy efficiency equipment for buildings
• 3.6. Manufacture of other low-carbon technologies

4. Business Ethics
• 7.1. Construction of new buildings
• 7.2. Renovation of new buildings
• 7.6. Installation, maintenance and repair of renewable energy The eligible turnover and OPEX is mainly efficiency and low GHG emission. Turnover of CAPEX, several other activities have also
technologies related to the manufacturing of energy products that are relevant in both categories been identified to be eligible, such as
efficiency equipment for buildings' activity, are categorised under Manufacture of energy the renovation of existing buildings or
Transition to a circular economy: which primarily covers heating and cooling efficiency equipment for buildings to avoid installation, maintenance and repair of
• 5.1. Repair, refurbishment and remanufacturing solutions for commercial and residential double counting. renewable energy technologies. However, as
• 5.2. Sale of spare parts buildings. Another significant contributor to The non-eligible activities are related complex investments have been challenging
the eligible ratios is the manufacturing of to water utility and industrial solutions, to be allocated to EUT activities, we aim to
other low-carbon technologies containing which are not covered by the Climate improve data availability for more precise and
1
EU 2021/2139, amended by EU 2022/1214 and EU 2023/2485
products with special focus on energy & Environmental Delegated Acts. For potentially higher CAPEX KPI.
2
EU 2023/2486

5. Assurance
17 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Sustainability

2. Environmental Impact
Data and
Reporting
Comprehensive and accurate data on sustainability
efforts enable us to monitor our progress and identify
opportunities for improvement. We strive for the highest

3. Social Impact
level of trust in our data. The majority of our most
impactful KPIs have obtained reasonable assurance.

4. Business Ethics
Our approach

Timely and accurate ESG data is our consolidation system in 2022, which
essential foundation for balancing enables us to handle our sustainability
financial and ESG impacts in our business data and reporting in one location. With
decisions. Additionally, global requirements this system in place, we have established a
and demands for reliable and robust monthly reporting cadence, and therefore
sustainability information have increased. follow up on ESG performance in the same
We have responded to the increasing manner as in our financial reporting.
requirements by launching our ESG data

5. Assurance
18 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
2. Environmental Impact
3. Social Impact
Reporting and performance adding and balancing target setting on key ESG KPIs companies must follow the same processes and
management with financial and other non-financial targets. standards. As a result of these processes, ESG data Looking ahead

4. Business Ethics
In 2023, we focused on improving our process for maturity assessments have also been integrated
monthly monitoring and reporting of ESG data. A major Data quality and control environment into our due diligence processes for mergers and Following the outcome of our double materiality
step was the implementation of our Sustainability In 2023, we have further improved internal, centralised acquisitions. assessment, we conducted a gap analysis on CSRD
Scorecard with KPIs across our sustainability ambitions control processes which are integrated into the We continuously strive to improve our data quality, readiness to identify where we need to strengthen
– currently 14 KPIs. We have therefore improved data financial control system, enabling us to provide timely and as a result of that effort, we obtained reasonable our sustainability governance and programmes,
quality and timelines for internal tracking and reporting and reliable frequent reporting. ESG data is part of our assurance for five ESG KPIs in 2022. In 2023, we and where to extend our data collection and
of progress. The ESG performance is reported to the internal audit framework, and in 2023, we conducted obtained reasonable assurance for our most impactful, reporting processes. In 2024, we will deploy our
Grundfos Sustainability Council once a month, and sustainability audits in four local entities. while obtaining limited assurance on all other KPIs. CSRD readiness roadmap, laying the groundwork
to Group Management on a quarterly basis. New processes for sustainability data integration Our ambition is to continuously increase the scope of for reporting in compliance with the EU CSRD
In 2023, we also increased our ESG integration into of acquired companies have been established as well. ESG KPIs obtaining reasonable assurance. from reporting year 2025.
our financial planning and forecasting process, by As Grundfos Group continues to grow, all Grundfos

5. Assurance
19 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Sustainability Performance Overview
GENERAL DATA UNIT 2023 2022 2021 2020 2020 2019 Ambition Progress on target Assurance level
baseline 2023 data

2. Environmental Impact
Number of employees Headcount 19,937 20,026 20,154 19,221 19,060 Reasonable assurance

Earning before interest and tax (EBIT) before special items DKK Millions 4,309 3,939 3,266 2,606 2,791 Reasonable assurance

Revenue DKK Millions 34,407 33,341 28,733 26,340 27,518 Reasonable assurance

ENVIRONMENTAL DATA
Total emissions Scope 1, Scope 2, Scope 3 t CO₂e 105,661,961 116,736,701* 119,720,887 Reduce total absolute emissions by 90% Reduced total emissions by 11.7%
in 2050 compared to 2020 baseline. compared to 2020 baseline.

Total emissions Scope 1, Scope 2 (market-based) t CO₂e 94,109 100,323* 114,631* 114,865* 118,870 Reduce Scope 1 and 2 absolute Reduced Scope 1 and 2 emissions Reasonable assurance
emissions by 50% by 2030 by 20.8% compared
compared to 2020 baseline. to 2020 baseline.

Emissions Scope 1 t CO₂e 25,485 28,182 28,387 26,256 28,853 Reasonable assurance

Emissions Scope 2 market-based t CO₂e 68,624 72,141* 86,244* 88,609* 90,017 Reasonable assurance

Emissions Scope 2 location-based t CO₂e 41,854 49,929* 58,378* 55,748* 56,735 Reasonable assurance

Emissions scope 3 t CO₂e 105,567,852 116,636,378* 119,602,016 Reduce Scope 3 absolute emissions Reduced Scope 3 emissions by 11.7%

3. Social Impact
by 25% by 2030 compared compared to 2020 baseline.
to 2020 baseline.

Emission from purchased goods and services (category 1) t CO₂e 1,039,031 1,196,729 825,460 Limited assurance

Emission from capital goods (category 2) t CO₂e 94,556 72,161* 77,590 Limited assurance

Emission from fuel and energy related activities (category 3) t CO₂e 16,495 18,849 17,339 Limited assurance

Emission from upstream transportation and distribution (category 4) t CO₂e 69,540 85,495 105,453 Limited assurance

Emission from waste generated in operations (category 5) t CO₂e 1,008 1,078 2,249 Limited assurance

Emission from business travel (category 6) t CO₂e 46,147 26,075 39,140 Limited assurance

Emission from employee commuting (category 7) t CO₂e 15,981 12,886 18,441 Limited assurance

Emission from use of sold products (category 11) t CO₂e 104,281,692 115,219,793* 118,513,555 Reasonable assurance

4. Business Ethics
Emission from end-of-life treatment of sold products (category 12) t CO₂e 3,401 3,313 2,789 Limited assurance

Energy consumption (scope 1, scope 2) MWh 286,264 319,641 333,705 310,613 279,471 Reasonable assurance

Water withdrawal m 3
339,608 365,126 341,538 318,469 386,060 Reduce water withdrawal by 50% Reduced water withdrawal by Reasonable assurance
in 2025 compared to 2008 baseline. 48% compared to baseline.

Total waste to landfill t 872 965 1,098 1,426 Reduce waste to landfill by 50% in 2025 Reduced waste to landfill by Limited assurance
compared to 2018 baseline. 65% compared to baseline.

Hazardous waste to landfill t 76 64 129 202 Limited assurance

Non-hazardous waste to landfill t 797 901 969 1224 Limited assurance

Resource recovery through take-back kg 134,098 64,288 37,992 ≈ 14,665 ≈11,977 Recover 500,000 kg Positive trend in take-back, Reasonable assurance
from take-back in 2025. 27% of ambition achieved.

* Number has been restated, please refer to page 78.

5. Assurance
20 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Sustainability Performance Overview - continued
GENERAL DATA UNIT 2023 2022 2021 2020 2020 2019 Ambition Progress on target Assurance level
baseline 2023 data

2. Environmental Impact
SOCIAL DATA
Women Board of Directors % 20 33 33 20 33% women in Board Reasonable assurance
of Directors by 2025.

Women leaders % 25 24 22 24 24 27% women in leadership Positive trend in Women leaders, Reasonable assurance
positions by 2025. another 2%-point improvement required
to meet ambition.

Early career voluntary turnover % 16 Reasonable assurance

Total voluntary turnover % 8 Reasonable assurance

People with disabilities % 2.8 3.0 3.0 3.1 3.2 3.5% representation of people 80% of 2025 target achieved. Limited assurance
with disabilities by 2025.

Lost Time Injury (LTI) ratio per million 1.77 2.06 2.23 1.81 2.52 LTI ratio of 1.5 by 2025. Positive trend in LTI ratio, another Limited assurance
working 0.27 improvement in ratio required
hours to meet ambition.

3. Social Impact
Employee Motivation and Satisfaction (EMS) score 78 76 77 77 75 EMS score of 78 by 2025. EMS target achieved. Reasonable assurance

Stress level % 21 22 Reduce the level of stress 9%-point improvement required in Reasonable assurance
to 12% by 2025. stress level to meet ambition.

People reached with drinking water access number 2,050,934 Promote access to drinking water Please refer to page 47. Limited assurance
for 300 million people by 2030.

GOVERNANCE
Sourcing Sustainability Index % 100.0% Limited assurance

Overall CSR Compliance rate - EV & BV (CSR) % 91.6% Limited assurance

EcoVadis Supplier Onboarding (CSR) % 107.7% Limited assurance

Spend coverage - with data (Carbon footprint) % 22.3% Limited assurance

4. Business Ethics
Spend Coverage (Water footprint) % 20.1% Limited assurance

Chemical compliance hit rate (Compliance) % 101.3% Limited assurance

Conflict Minerals - declaration coverage (Compliance) % 92.5% Limited assurance

5. Assurance
21 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Partnerships
and Advocacy

2. Environmental Impact
To address global challenges and drive systemic
solutions on water sustainability, climate action, and
advancement of human rights, we engage in collective
action and partnerships across sectors and continents.

3. Social Impact
Our approach Our progress in 2023

We recognise our position as a global industry leader in driving Our advocacy work involves using our presence at major events Through partnerships, we aim to share our insights and know-how to
global change, and we are committed to working with key public to demonstrate our ambition to be part of the solution to the positively impact climate, water and other critical topics. This year, we
and private stakeholders in investing and driving collective action world’s water and climate challenges. We aim to contribute to have built upon our relationships with our partners and attended multiple
for social and environmental sustainability. global conversations on advancing climate action and water events, such as the UN 2023 Water Conference and the World Economic
Through our strategic partnerships and advocacy with sustainability at key events such as IWA conferences, Global Water Forum’s Annual Meeting, to advocate for the role of water in developing

4. Business Ethics
international organisations, governments and NGOs, we are Summit and the UNFCCC COPs. an equitable and sustainable world that can protect and improve people’s
addressing the global climate and water agendas while promoting Our advocacy for stronger government intervention is also vital quality of life, particularly in the face of water scarcity and climate change.
the advancement of human rights and wellbeing, step by step. for the global sustainability agenda to advance. We provide input We also organised activities throughout Europe, particularly in
Grundfos and the Poul Due Jensen Foundation have long- into the legislative process at national and international levels Denmark, Germany and the United Kingdom, to improve energy efficiency
standing relationships with partners such as the International related to sustainability. For example, in recent years, we have standards within buildings, products and homes. The International Energy
Water Association (IWA), C40 Cities, EV100, and the World reviewed and welcomed revisions of multiple energy efficiency Agency has recognised that energy efficiency is a core variable in achieving
Economic Forum. These strategic partnerships, some of which are and water-related directives such as the EU Energy Efficiency net-zero carbon emissions by 2050;3 therefore, the time is now for policy
funded by the Poul Due Jensen Foundation, help us collaborate Directive in 2021 and the EU Energy Performance of Buildings intervention and bringing standards up to the required level.
with a wide network of businesses, industries and governments, Directive.
charities and not-for-profit organisations to deliver on our 3
International Energy Agency, World Energy Outlook 2022, 44 > https://iea.blob.core.windows.net/
environmental and social ambitions. assets/830fe099-5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf

5. Assurance
22 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Spotlight: Spotlight:
Supporting young water Building sustainable business
professionals to drive SDG6 action relations with Chinese partners

2. Environmental Impact
In 2022, Grundfos partnered with the International Water Association to launch Grundfos is committed to advancing the agendas the Shandong province, as well as business leaders
the Youth Action for SDG6 Fellowship. This initiative selected 12 Young Water of energy efficiency and decarbonisation with representing young Chinese entrepreneurs and
Professionals (YWPs) from all over the world to actively participate in the UN Water customers, partners, and policy makers across growing companies with a focus on building greener
Conference in New York City in March 2023. The YWPs seek to promote and create continents. and more energy-efficient industries.
a geographically and gender-balanced water sector, promoting diversity and In 2023, we welcomed a delegation from China's commitment to achieve carbon neutrality
thought leadership to solve these complex, worldwide water challenges. Shandong, China, to Grundfos headquarters in before 2060 suggests an acceleration in the
Following the conference, the YWPs visited Grundfos’ headquarters in Bjerringbro, Bjerringbro to discuss our future collaborations country's transition towards a green economy.
Denmark, to present their main findings and learnings from the conference and and how we can work together to drive our Through our collaboration with Chinese partners,
collaborate with Grundfos employees, as well as the IWA, to brainstorm ideas. decarbonisation agendas and achieve net zero. we aim to support the decarbonisation of China's
These ideas were integrated into a joint publication providing insights into the The delegation included political stakeholders from emission-heavy manufacturing sectors.
crucial role of young people in the implementation and delivery of the
2030 SDG Agenda within the water sector.

3. Social Impact
The publication was launched in December 2023 at the IWA Water Development
Conference in Kigali, Rwanda.
Link to Youth Action for SDG 6 - IWA and Grundfos Fellowship Outcomes here.

4. Business Ethics
5. Assurance
23 \ GRUNDFOS SUSTAINABILITY REPORT 2023
INTRODUCTION

1. Introduction
Partnership Overview
Partner and Grundfos engagement

2. Environmental Impact
Being a member of the CEO Grundfos’ experience in water IWA is a non-profit with10,000+ Rare-earth raw materials are fundamental
members (academic researchers, utilities The Poul Due Jensen Foundation
Water Mandate extends our management is put into use via our to the production of our pumps. In 2020,
practitioners and regulators) focusing has intensified its involvement in
commitment to address global close partnership with C40 Cities, we developed a global overview of the
on accelerating the implementation of the World Economic Forum, actively
water challenges by supporting aiming to make the world’s megacities quantified sustainability impact of these
the latest knowledge across the globe. contributing to key groups focused
collaborative efforts. more climate resilient for the benefit of materials throughout our supply chain,
Grundfos' engagement has been focused on advancing the global water
millions of citizens worldwide. Funded by from mine to magnet to product. It allowed
on sponsoring the major IWA Conference agenda, such as the Alliance of CEO
the Poul Due Jensen Foundation, C40’s us to identify sustainable suppliers. As a

3. Social Impact
(Copenhagen 2022 and Toronto 2024) Climate Leaders and the centres
Water Safe Cities Accelerator helps cities result of this work, we became a founding
and youth engagement, more specifically for Nature and Climate and Urban
address flooding and drought challenges partner of the European Raw Materials
through the IWA Grundfos Fellowship Transformation.
and improve resilience by 2030. Each Alliance (ERMA).
city will also take steps to improve water Youth 4 SDG 6, which brought 14
Grundfos and the 50L Home access, flood protection or wastewater young water professionals to the UN
Water Conference 2023 and released
Coalition focuses on making management. To date, 16 cities have
the publication Youth Action 4 SDG 6
the reuse and recycling of water joined the Water Safe Cities Accelerator.
presenting the outcomes of the fellowship
the norm in homes, cities, and
programme.
regions; calling for smarter By signing The Pledge in 2021, Grundfos has committed to taking positive action on

4. Business Ethics
approaches that allow ‘fit-for- workplace mental health and taking steps to progress the six Pledge Commitments:
purpose’ water use. Grundfos 1. Develop and deliver an action plan to support good mental health in our organisation.
works with fellow Coalition 2. Promote an open culture around mental health, working towards eliminating stigma.
members and partners to 3. Take proactive steps to develop our culture and ways of working towards creating
help identify and scale up new positive mental health and reducing mental ill-health.
Being a member of the UN Global
technologies that can transform 4. Empower all our people to manage and prioritise their own mental health, and to
Compact aligns our efforts with a global
the way we use water and the support one another.
movement and allows us to benefit
energy needed to heat it. As part of EV100, Grundfos is committed 5. Signpost our people to mental health tools and the support they need.
from and contribute to collective action
to working towards EV integration into its 6. Regularly measure the impact of our efforts, being open about our progress to
in the areas covered by the UNGC’s Ten
own fleet of light vehicles. influence and inspire change in our organisation and beyond.
Principles.

5. Assurance
24 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 1. Introduction
2. Environmental Impact
3. Social Impact
Environmental impact

4. Business Ethics
26 Climate
36 Water
39 Circular Business

5. Assurance
25 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Climate 2023 Total Carbon Emission Footprint

In 2023 we reached 11.7% carbon emission reductions

2. Environmental Impact
since baseline year 2020, 9.5% reductions since 2022 0.1%
Scope 1 and 2
Own operations
and invested DKK 134m in climate initiatives.

106
million tonnes CO e
1.2% Scope 3 Upstream
2
Total Carbon Emissions
The water and climate connection

3. Social Impact
At Grundfos, we are committed to achieving net-zero move, manage and treat water for a growing world will Scope 3, Category 11:
carbon emissions across our value chain and to support increase further in the coming decades. 98.7% Use of sold products
the global transition to an equitable, low-carbon and It is therefore paramount to decarbonise the flow
climate resilient economy. of water to mitigate further climate change, and it is
Every day, Grundfos products and solutions support increasingly important to adapt to the impacts of climate
customers around the world to cool and heat commercial change with climate- and water-resilient solutions for
buildings and residential homes, to manage water companies, communities, and societies.
and liquids in manufacturing, and not least to provide Given that Grundfos delivers hard-working and energy- Scope 1 Scope 3 Upstream Scope 3, Cat. 11
essential services of drinking water and wastewater consuming products and solutions with a lifetime of more • Natural gas • Purchased goods and services Emissions generated

4. Business Ethics
treatment to citizens. than ten years, the total amount of carbon emission in our • Fleet • Capital goods from the electricity used
According to a recent report from Global Water value chain that we are responsible for is 106m tonnes. • Refrigerants • Fuel and energy related activities during a 10-year use-
Intelligence, the water utilities sector alone accounts The vast majority, 98.7%, takes place in the use-phase of • Upstream transportation and distribution phase of our products.
for 2% approx.4 of global carbon emissions, and pumps our sold products, which sets us on the daunting mission Scope 2 • Waste generated in operations
account for 25% of all electricity consumed by industrial of decarbonising more than 100m tonnes of CO2e in the • District heating • Business travel
electric motors.5 It takes large amounts of energy to move use of our products. As we progress on reducing carbon • Electricity • Employee commuting
and treat water. With the impacts of climate change often emissions in our scope 3 downstream, we will enable our • End-of-life treatment of sold products
materialising in the form of water impacts, the need to customers to reduce carbon emissions in their operations.

4
https://www.globalwaterintel.com/water-without-carbon
5
https://www.pumps.org/2022/06/27/epri-sees-energy-savings-in-pumps/

5. Assurance
26 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Our approach

The climate science is clear: we must limit global warming To reach our net-zero target by 2050, deep decarbonisation

2. Environmental Impact
to 1.5°C above pre-industrial levels and achieve net zero by is imperative across our operations and wider value
2050.6 We are committed to achieving net-zero emissions chain. This mission involves every function and division in
and support the global transition to a climate resilient, Grundfos, and we are working diligently to orchestrate this
equitable and low-carbon economy. transition journey.
In 2022, Grundfos became the first water solutions Paving the way towards a net-zero future requires
company worldwide to have its 2050 Net-Zero Target collaboration at a global level, so to guide, accelerate and
validated by the Science Based Targets Initiative (SBTi). amplify our efforts we have forged partnerships with a
We are proud of this achievement as the SBTi defines and range of organisations, including the Science Based Targets
promotes best practice in setting science-based emissions initiative (SBTi), Climate Group EV100, C40 Cities, and the
reduction targets. World Economic Forum (see page 24).

3. Social Impact
Our Net-Zero Journey

Near-Term Target Net-Zero Future

Baseline Activation
Scope 1 and 2: 50% emission reduction Scope 1 and 2: > 90% emission reduction
Scope 3: 25% emission reduction Scope 3: > 90% emission reduction

4. Business Ethics
Balancing out residual emissions to reach net zero

Emissions
within
our value
chain 2020 2022 2030 2040 2050

5. Assurance
27 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
2023 key actions to build the foundation
and drive progress across scopes:

2. Environmental Impact
Climate investments
To drive decarbonisation across our value chain, we invested an additional DKK 134m in
climate initiatives. Part of the investments were dedicated to driving energy efficiency in our
own operations and progress on our roadmap for electric vehicles in our fleet. The majority of
the investments has been dedicated to driving progress in our downstream Scope 3 through
innovation in product energy efficiency and digital solutions, as well as investing in customer
advisory services on energy efficiency and advocacy for policies to drive uptake of energy
efficient solutions and green energy transition.

2030 roadmap
We developed and started implementing our decarbonisation roadmap towards our near-term

3. Social Impact
2030 targets across Scope 1, 2 and 3. Given that the use of our products constitutes 98.7% of our

134m total carbon footprint, our decarbonisation efforts are predominantly focused on providing our
end users with smarter and more energy-efficient solutions. Nonetheless, we are working hard
DKK invested in to continually reduce our Scope 1 and 2 emissions.

climate initiatives
in 2023 Climate governance
We strengthened our climate governance model with clearer decision mandates, robust

2023 progress: building programme management, and transparency on progress. This includes monthly tracking and
internal reporting on our GHG emission reduction targets as part of the Sustainability Scorecard

4. Business Ethics
a solid foundation and and the integration within the overall sustainability governance and operations model.

showing first results Re-baselining

In Q4 2023 we finalised the re-baselining for our SBTi goal in alignment with SBTi guidelines. Key
In 2023, we continued our ambitious climate journey, leveraging the momentum from elements in our re-baseline process were applying actual and activity-based data from our latest
having our near-term and long-term net-zero targets validated by SBTi in 2022. Our efforts company acquisitions and applying more accurate emissions factors in our climate calculations.
focused on building a solid foundation for the long journey ahead as well as realising Details on our re-baseline are specified in a dedicated statement in this report and the statement
absolute reductions in carbon emissions with an 11.7% reduction from our 2020 baseline. will also be shared with SBTi according to their guideline for disclosure of re-baseline.

5. Assurance
28 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Our Science-Based Net-Zero Journey

2030 Goals & Roadmap Net Zero by 2050

2. Environmental Impact
Scope 1 & 2 Scope 3 Downstream Scope 3 Upstream

• Energy efficiency in operations​ • Highly energy-efficient product portfolio • Supplier decarbonisation engagement min.
• Electrification of heating​ • Digital solutions for intelligent water programme
•
•
Electric fleet conversion​
Renewable energy sourcing​
management
• Advise and empower customers to
decarbonise
• Circular principles across our value chain
• Lower carbon raw materials and compo-
nents
90%
• Industry partnerships and alliances • Decarbonising business travel and
Absolute reduction max.
for decarbonisation in Scope 1, 2 and 3
• Advocacy for a just and green transition
transportation of goods
10%
to net zero Removal of
residual
emissions
50% 25% 25%

3. Social Impact
reduction reduction reduction

Baseline year 2020

Targets 2023 progress Progress from baseline 2020

Total carbon emissions 9.5% reduction in total emissions 11.7% reduction in total emissions

4. Business Ethics
Total carbon emission reductions in 2023 compared to 2022 figures. compared to baseline year 2020.
In 2023 we have taken solid steps towards our 2030 targets
and ultimately our net-zero goal. Our total carbon emission
reduction in 2023 was 9.5% compared to 2022, and a total
Reduce Scope 1 and 2 absolute -6.2% -20.8%
of 11.7% compared to our baseline in 2020. Since the use of emissions by 50% by 2030 and
sold products is 98.7% of our total emissions, this number is by 90% by 2050
closely tied to our overall sales results as well as to the market
conversion to energy-efficient and intelligent pump solutions
In the coming years, we will focus on a further decoupling of Reduce Scope 3 absolute -9.5% -11.7%
emissions by 25% by 2030
our carbon emissions from our business growth.
and by 90% by 2050

5. Assurance
29 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Spotlight:
Grundfos enters an ambitious
power purchase agreement
Scope 1 and 2: Reducing emissions from own operations from renewable energy, and as a result, the PPA is a

Reducing operational We acknowledge that curbing our own operational

emissions is necessary to meet our near- and long-
key enabler in helping us to achieve the 50% carbon
emission reduction from our operations in 2025, five

2. Environmental Impact
carbon emissions term net-zero targets. In 2023, Grundfos announced
an ambitious new partnership with the German
years earlier than originally planned. The PPA alone
will account for approximately 40% of the decrease

ahead of target renewable energy company, ABO Wind.

Our partnership involved signing a power purchase
in emissions.
The wind farm, located in Finland, will be fully
agreement (PPA), which means that Grundfos can commissioned by the end of 2024, and we have
secure access to green electricity, covering our committed to buying energy sourced from the wind
At Grundfos, we focus on combining energy-efficient operations with the operational emissions related to electricity. 80% of farm for the next 10 years.
transitioning away from the use of fossil fuels as well as the decarbonisation Grundfos’ EU power consumption will be sourced
of our Scope 2 footprint. Electricity constitutes a significant source of our
operational emissions, which is why we are ambitious in our approach to
decarbonise our electricity consumption.

3. Social Impact
Accelerating renewable energy
In 2023, we signed our first Power Purchase Agreement, which will enable us
to cover 80% of our EU power consumption with renewable energy from 2025.

11.7%
total emission reduction
in 2023 compared to our

4. Business Ethics
baseline in 2020.

9.5%
total emissions reduction
in 2023 compared to 2022.

5. Assurance
30 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Spotlight: Spotlight:
LEED-Gold in Serbia DGNB-Gold in Denmark
Reducing our operational emissions In our LEED Gold-certified manufacturing facility in In Bjerringbro, Denmark, we have constructed our new
Initiatives are continuously launched in Grundfos to reduce Serbia, we utilise geothermal-powered heat pumps South 2 office and lab building which is pre-certified
emissions in own operations. In 2023, we took steps to heat and cool the facility through our Vertical as DGNB Gold, a German sustainability certification
to improve the energy efficiency of our manufacturing Geothermal Closed Loop system (144 boreholes that of buildings, the first of its kind to be built within

2. Environmental Impact
equipment and machinery through retrofitting and go 125 meters below soil surface). This is a Grundfos Grundfos. This accreditation demonstrates that the
installation of new parts. We achieved this by utilising our first, and the largest geothermal field in Serbia. design of the South 2 building ensures that emissions
designated CAPEX investment pool for initiatives designed are kept below 12 kg CO2e/m2/year.
to reduce emissions and energy usage.

Real-time Environmental Monitoring

In 2023, Grundfos took a significant step towards
environmental sustainability by implementing real-
time environmental data monitoring in our first plant.
We installed new meters and connected both new
and existing meters to a software platform for easy
data access and improved data quality. This strategic

3. Social Impact
roll-out marks the first step of a comprehensive global
initiative aimed at digitalising environmental data
across Grundfos plants.

Environmental Management System Spotlight: Carbon Busters Network

Grundfos has implemented the ISO 14001:2015
In 2023, Grundfos introduced The Carbon Busters Network, reducing carbon emissions at home by offering advice on
standard for all global sites. This international
an internal voluntary network of Grundfos employees with how to avoid food waste, how to make it easy to use public
standard focuses on the continual improvement of
a mission to catalyse cultural change one emission-saving transportation, and how to save energy at home. Called

4. Business Ethics
the environmental performance of our four business
action at a time. The Carbon Busters Network has 700 the ‘Carbon Busters Going Home Meetings,’ these sessions
divisions, including objectives and targets relating to
actively participating members. encouraged members to make CO2 reductions even outside
energy consumption. By having this standard in place,
The Carbon Busters Network gets together in virtual of work through simple and practical everyday choices. 
coupled with our group policy for EHS and our SBTi
meetings live from across the globe, sharing practical advice The Carbon Busters Network aims to inspire and motivate
Net-Zero Target, we are guided in our approach to
on refurbishing pumps, reducing idle modes, implementing Grundfos employees worldwide to reduce both their personal
reducing our climate impact in our own operations.
circular office furniture, performing weekly energy walks to and the company’s carbon footprint by taking climate action.
lower energy consumption, innovating circular pumps of Through sharing and advocating CO2 reduction strategies, the
tomorrow, and taking back and reusing pumps and parts. network will support Grundfos’ commitment to sustainable
In addition, The Carbon Busters Network provided input on development and science-based climate targets.  

5. Assurance
31 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Spotlight:
36% energy reduction at Hilton Hotel in Thailand
Scope 3 Downstream: Hilton Hua Hin, a 32-year-old beachside property to approximately 120,000 kg of CO2 reduction. In

Decarbonising use of located in Thailand, was looking at ways to improve

their overall energy efficiency. As their pumps
addition, the system is now also fully optimised and
responds to changes of load in the building through

sold products for and supplying chilled water for their HVAC system were the installed variable speed drives and sensors, while

2. Environmental Impact
starting to age and operated manually without ensuring a great comfort for the hotel guests.

with customers optimisation or control, it was time to consider an

upgrade. Read the full story on our website here.
After carrying out a complete system audit with
hydraulic measurements, Grundfos identified the
The main category for our Scope 3 emissions shared net-zero journey, providing our
opportunity to reduce energy consumption by
is category 11 “Use of Sold Product”. Our customers with the most energy-efficient
replacing the existing chiller and condenser pumps as
road to net zero is therefore a joint journey solutions and empowering their climate
well as adding control logic.
with our clients as the decarbonisation of our ambitions and actions. We fully believe that
The pumps were upgraded and now they use
value chain will mean a decarbonisation for if we race together, we will have a stronger
36% less energy, which is a significant saving to
our customers in their operations. platform for reaching our joint ambition of
the energy bill, but just as important it translates
We want to be a trusted partner on this a net-zero future.

3. Social Impact
In 2023, we have focused our efforts on the following:

Spotlight: Net-zero training • Investing in innovation and accelerating product • Promoting our energy efficiency solutions, so called
of our Industry division colleagues development roadmaps for highly energy-efficient E-products and iSolutions, to our customers. Each division
products and further development of digital solutions has actively engaged with customers to showcase and
In 2023, Grundfos developed and imple- • Net-Zero and Science-based targets
enabling connected and intelligent water and pump deliver the benefits of energy-efficient solutions to their
mented a new net-zero and science-based (SBT): What net zero is and helping
management systems. We also continued to drive our sustainability ambitions as well as our targets.

4. Business Ethics
targets competence development employees understand the specific
portfolio of products running directly on renewable
programme for all Industry division em- terminology and our Grundfos • Engaging in alliances and advocacy for policies
energy from solar or wind.
ployees. The training, which is delivered roadmap. supporting the green transition with a focus on enabling
online and face-to-face, is designed to • E-pumps and iSOLUTIONS: Covers • Investing in customer advisory capabilities and environments for energy-efficient solutions and
appropriately meet the needs of em- the (digital) solutions and products training customer facing colleagues on our net-zero renewable energy. We supported the UN Global Compact
ployees based on their level of customer we have on offer to customers today, transformation journey and how they can contribute Nordics CEO Statement calling for a just and green
engagement. Currently, 62% of employees to reduce our carbon footprint and trough advisory services to customers and conversion of transition to a net-zero future, and the World Economic
have completed the relevant training help customers reduce theirs when sales to energy-efficient and intelligent pump solutions Forum Alliance of CEO Climate Leaders open letter ahead
according to their daily responsibilities linked to energy efficiency. with lower energy consumption than traditional pumps. of COP28.
which focuses on two core areas:

5. Assurance
32 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Scope 3 Upstream: Carbon footprint of direct
procurement clusters
Decarbonising with suppliers

2. Environmental Impact
Various 2% Direct/Undefined1%

and logistics partners Mechanics 7%

Packaging 7%
Casting 25%

Electromechanics 7%
At Grundfos, we take responsibility for the The importance of data quality and clear
emissions from our supply chain as we know KPIs is integral to achieving planned levels
that raw materials, components, packaging, of decarbonisation. Over the course of
and transportation are the key contributing 2023, we collected our suppliers’ historical
Polymerschemicals 8%
areas to our upstream emissions footprint. absolute emissions from Scopes 1, 2 and 3,
and intensity data where available. We aim to
Supply chain decarbonisation improve our emissions reporting by moving

3. Social Impact
Led by our Group Purchasing team in close from a spend-based calculation method to a
collaboration with other internal functions, hybrid calculation approach, where we will Machined 11%
Metal 20%
we are engaging with our key suppliers to integrate a more accurate footprint data for
build a joint journey towards a net-zero supply purchased materials as well as suppliers.
chain. In 2023, we have defined our supply Going forward, when we procure materials Electronics 12%
chain decarbonisation ambition and strategy to manufacture products, we intend to
towards a 25% reduction of carbon emissions consider specific emissions factors in addition
by 2030. to price, where possible.
Decarbonisation levers
for 25% reduction

4. Business Ethics
Our supply chain decarbonisation strategy
builds on three main pillars:
• Measuring the emission reduction that
comes from our suppliers’ own initiatives. Supplier’s own Lower-carbon Supplier
• Using lower-carbon materials to initiatives materials engagement

10% 10% 5%
manufacture our products.
• Engaging our key suppliers to help with
reducing our carbon footprint.

5. Assurance
33 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
2. Environmental Impact
Our main initiatives
in 2023 were:

Reducing transportation and distribution emissions

Over the course of 2023, by using the internationally recognised life cycle,
well-to-wheel (WTW) approach, Grundfos achieved more than 15% CO2e
reduction in upstream transport and distribution emissions compared
to 2022. This was in large part due to a much lower amount of air freight
volume, which meant reduced air-related CO2e emissions. Furthermore,
emission reductions were achieved by the continued use of electric trucks
and sustainable fuel trucks in selected markets, as well as a sustained
effort to reduce emissions from ocean freight.

3. Social Impact
Introducing waste-based biofuel
Additionally, 2023 was the first full calendar year where Grundfos required
waste-based biofuel as a standard fuel for all ocean freight shipments.
Our ocean freight partners, GEODIS and DHL, use the method of in-setting
waste-based biofuel, such as the used cooking oil from various industries.
By working with Maersk, we have been able to collaborate with a company
which applies the latest methanol technology as well as collecting
‘brown grease’, using it as a source of fuel for Maersk vessel engines, thus
preventing them from polluting the water supply.

4. Business Ethics
Our plans for 2024
We have started and will continue to optimise various aspects of our
Transportation and distribution supply chain to reduce transportation and distribution-related emissions,
such as increased conversion from road to rail transport and encouraging
Although emissions associated with upstream and downstream our employees to use more optimal planning parameters for air freight,
transportation and distribution accounts for a small portion of our which will enable ocean freight with its lower carbon intensity. We will
own total carbon footprint in Scope 3 (including use of sold products), also fully replace our own IT tool with that from EcoTransIT to calculate our
it is equal in size to the emissions from our factories – making it an transport-related emissions more accurately.
important area of our business to continue to decarbonise.

5. Assurance
34 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
2. Environmental Impact
Looking ahead

In 2024 and the years to come, we will continue

our net-zero journey and further expand the
scope and scale of our climate transition efforts.

1 2 3 4 5

3. Social Impact
Develop and deploy Climate Driving energy efficiency Accelerating decarbonisation Partnerships and solutions Understanding
Transition Action Plan and renewable energy for and with our customers for climate resilience climate-related risks
In 2024 we will further develop our According to the International Energy In 2024, we will accelerate the As one of the world’s largest In our sustainability journey, we
roadmaps and governance models and Agency (IEA) and the latest Energy decarbonisation of our value chain manufacturers of smart water solutions, acknowledge the pressing reality of
introduce Grundfos Climate Transition Efficiency Report we need to double the through increased focus on reducing our Grundfos has a central role in supporting climate-related risks that our company
Action Plan (CTAP). Our CTAP will be pace of energy efficiency and triple the customers' footprint via smarter and customers and communities in faces. While we recognise the existence
the overarching framework which will amount of renewable electricity by 2030. more energy-efficient pump solutions transitioning to an equitable, low-carbon of these risks, we currently lack a
continue to build clarity on how we move At Grundfos, we are aligned with the IEA and water technologies as well as and climate resilient future. Therefore, comprehensive understanding of their

4. Business Ethics
from setting goals to taking near-term and ambitions and recommendations. We will increased focus on advisory services we will explore solutions, partnerships scope and potential impacts. To address
long-term action and achieve our goals continue accelerating our investments to our customers. As an example, and collaborations to support customers this critical gap, we are committed to
in line with a 1.5°C emissions reduction in and advocacy for energy-efficient our Industry division will strengthen and communities adapting to the undertaking a thorough climate risk
pathway. The CTAP is an ambitious next pump solutions and water technologies. the collaboration with customers by impacts of climate change and building and opportunity mapping and analysis
step on the journey towards corporate Through our renewable energy power providing an in-house consultancy service a water- and climate-resilient future. We initiative in the first half of 2024. In this
climate leadership, and for Grundfos it purchase agreement with ABO Wind, to support customers in identifying areas believe there are many possibilities in the assessment we will look both at our own
means a forward-looking list of current we will also begin to see a significant of improvement, including new Grundfos deployment of existing solutions as well operations, as well as our key market and
and future actions to align internal reduction in our market-based scope 2 solutions to reduce energy usage and as opportunities for innovation and new customer segments. The output of this
strategies and action plans as well emissions at the end of 2024, which will emissions. partnerships. analysis will serve as a critical input to our
as external climate and energy policy take us a long way towards achieving our Climate Transition Action Plan.
advocacy to reduce GHG emissions. 2030 target for our own operations.

5. Assurance
35 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Water

2. Environmental Impact
Grundfos is committed to pioneering
solutions to the world’s water challenges.
In 2023, we reached 96% of our 2025
target to reduce water withdrawal in own
operations by 50%, and we enabled end users

3. Social Impact
to save 1.6bn m3 of water in their operations.

Possibility
in every drop Our approach

4. Business Ethics
The water crisis is complex because water problems making its effects more unpredictable. But the linkages and in the natural world, water is vital for the At Grundfos, we are accelerating action
are linked to local contexts. This makes scaling global between water and climate extend beyond the more functioning of nature’s carbon sinks. Water is a critical on water by optimising our products and
solutions more challenging. Yet, the causes of the water frequent floods, droughts, and extreme events that ingredient in the production of energy and will play solutions for our own business, end users and
crisis are similar from country to country. climate change brings. Water also has the potential to a vital role in the clean energy transition. From green the planet. But fixing the water crisis will take
From governance, finance and political will, to capacity, be a potent climate solution. With improvements to its hydrogen to hydropower, a lower emissions future more than just a focus on water technology.
technology and the inability to truly value this precious management, water can enable emissions reductions, relies on water. Water-based climate adaptation can Effective action needs a collective effort.
resource. To solve these problems across the world we support the energy transition and climate mitigation also bring the resilience we need to withstand the This is why we work with our customers
need to work together to tackle the root causes. efforts, and bring resilience. changes in the world around us. and partners across not only our solutions
Beyond the chronic drivers of the water crisis, climate More efficient water and wastewater management technologies, but also on innovation and on
change is now exacerbating water insecurity and translates to lower emissions from the water sector, strengthening policy to catalyse change.

5. Assurance
36 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
96%
of 2025 target reached
for reducing water
withdrawal in own
operations.

2. Environmental Impact
Our progress in 2023

3. Social Impact
2023 has been a year with great focus on water and deliverables of the operational water management Spotlight:
within Grundfos. We have driven solid progress on workstream are threefold: 1) To better understand How optimal pressure
our ambition for reduction of water withdrawal in our water-related risks in our operations and opportunities management saves water
operations, where we reached 96% of our 2025 target. for positive impact. 2) To identify potential compliance
Grundfos solutions also continue to enable our end gaps related to upcoming water legislation. 3) To renew A water utility company in Poland reduced revealed further efficiency opportunities, and
users to save water in their operations, whether in mitigation and investment plans to address significant their annual water losses by 60,000 m³ after so began the replacement of the vertical pumps
industrial production sites or water service networks. water-related risks and impacts. implementing Grundfos Demand Driven with new high-efficiency Grundfos CR pumps,
We estimate the total water saving of end users in Distribution (DDD). DDD enables dynamic and the implementation of a DDD control

4. Business Ethics
2023 to be 1.6bn m3. Additionally, our 2023 focus has been on: pressure control at strategically placed measuring system.
Outside of Grundfos, we have also seen a growing • reducing total water withdrawal in our operations points in the network, optimising pressure As a result, the utility’s NRW decreased to
focus on water and water management. Grundfos • re-assessing water risks at our production sites adjustments according to fluctuating demand 9.3% – a substantial reduction of 3.2 percentage
welcomes the introduction of new legislation and the • increasing water reuse through advanced water thereby leading to fewer underground leaks. points that prevents the loss of 60,000 m³
strengthening of voluntary standards, as we see these treatment technology  Goleniów Water and Sewage Utility (GWiK) is of fresh, treated water annually. Energy
as key levers to accelerate action on water. • enabling end users to optimise their water use very ambitious in its work on network efficiency consumption was also reduced by 43%, saving
In 2023, we have taken the first steps and laid the through dedicated support services  and optimisation. It wanted to improve its 194,000 kWh in the first year.
foundation for the development of our next level • raising the visibility of water solutions on the global already low non-revenue water (NRW) rate
water sustainability strategy. In this first phase, we are stage of 12.5%. A Grundfos audit of their system Read the full story on our website here.
focusing on strengthening water management in our • advocating for new water regulation to drive
own operations across continents. The main activities action on water.

5. Assurance
37 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Policy, Advocacy
and Partnerships Looking ahead

In 2023, we joined civil society, governments and private sector actors In 2025, Grundfos will reach the end of the first phase of
to call for action on water and to champion its value. This has involved its water sustainability journey in which we have focused

2. Environmental Impact
policy dialogues, for example on new European legislation on industrial mainly on saving water.
water use and speaking on the global stage. We’ve taken our messages In 2024, we will develop and launch a new, more
to the UN 2023 Water Conference in New York, the World Water Week ambitious and holistic strategy that both expands our
in Stockholm, and to COP28 in Dubai. At each event, our delegation has strategic focus and better leverages the different parts of
focused on raising the profile of water with a relentless focus on scaling our business to drive action. This will include changing
uptake of the solutions. how we manage water in our own operations, how we use
We have built a systematic approach to working with EU decision- our supply chain to drive down water risks, and how we
makers to solve water challenges. Together with Carlsberg, State of can make better use of our policy and external relations
Green and Danish Industry, we organised a conference on water reuse agendas. We will explore themes of water resilience
for European Industry in the European Parliament. Speakers included and water efficiency. Finally, we want to explore and
politicians from the European Parliament and high-level civil servants further develop cross-sector partnerships to drive water
from the European Commission. The conference was the launch of our sustainability action locally and globally.

3. Social Impact
advocacy for an EU Blue Deal. Grundfos continues to work with Danish
Industry and WaterEurope to advocate for concrete policy proposals for
a Blue Deal.

Our water
performance

4. Business Ethics
2025 Targets 2023 Performance 2022 Performance Progress on target We have two targets for our current ambition on water.
Our internal target is to reduce water withdrawal by 50%
Reduce our water withdrawal by 339,608 m3 365,126 m3 96% by 2025. In 2023, we have achieved 96% of this target.
50% by 2025 compared to the This represents significant progress in our journey to
2008 baseline year  improved water sustainability and resilience across our
operational sites.
Enable our end users to save 1.6 billion m3 1.8 billion m3 Since 2020 we have enabled Our external target tracks progress towards enabling
50 billion m3 water by 2030 end-users to save an estimated end users to save water through the use of our products.
against a 2020 baseline.  6.7 billion m3 water, achieving We continue to make progress on this front but recognise
13.4% of our 2030 target. there is more to do to drive change.

5. Assurance
38 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Circular Business

2. Environmental Impact
We are constantly striving to embed circularity principles
across the lifecycle of our products, and reduce waste in
our global operations. In 2023, we more than doubled the
results in our take-back programme, and surpassed our
2025 target for waste-to-landfill reductions in operations
by 15% compared to 2018 baseline.

3. Social Impact
Our approach

By separating economic activity from the Product design

consumption of limited resources, the circular Products designed for reuse, refurbishing
economy is a key part of the solution to tackling and remanufacturing.
climate change and other global challenges, such
Input
as biodiversity loss.

4. Business Ethics
Non-virgin and renewable use in material
Embedding circularity principles across the
input, ideally via controlled or closed-loop
lifecycle of our products represents the opportunity
resource cycles.
to reduce our resource consumption while still
growing our business. Business model
We see this not only as a sound business strategy Circular service and solutions for product
but also as critical to environmental issues related longevity and enabling end-of-life collection.
to resource extraction, waste management,
End of life (EoL) and next life
water scarcity, and the protection of biodiversity.
Products taken back and value created
for next-life offerings.
To guide our approach towards becoming circular
business leaders, we have defined four action areas.

5. Assurance
39 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ENVIRONMENTAL IMPACT

1. Introduction
Our progress in 2023

In 2023, we surpassed our initial reduction in waste-to-

landfill target for 2025. As a result, we will set a new target

2. Environmental Impact
and work to further reduce waste, while also implementing
our new circularity strategy which will include additional KPIs
and targets.
In 2023, we received 134,098 kg of pumps through the
take-back scheme, which represents a 109% increase on
2022 figures.
However, to achieve our 2025 take-back target of 500,000
kg, we foresee that our voluntary take-back programme alone
will not bring us the volumes we aspire to achieve. Therefore,
we will focus even more on partnerships across the value
chain to bolster the volumes of products our customers send
back to us for remanufacture.

3. Social Impact
4. Business Ethics
Risks and
opportunities 2025 Targets 2023 Performance 2022 Performance Progress on target

Grundfos believes the upcoming EU CSRD will increase the We aim to reduce waste to 872.3 tonnes 964.9 tonnes In 2023 we surpassed our 2025
water industry’s focus on the circular economy. Additionally, landfill by 50% based on our 2018 target of reduction in waste to
the EU CSRD will make it easier to compare a company’s baseline. landfill by 15%.
circular maturity directly with its competitors. It is our
ambition to lead the industry within circular business, so we We aim to take back 500,000 kg of 134,098 kg 64,288 kg 27% of our 2025 target
welcome this new upcoming directive and standard as an used products by 2025. has been achieved.
opportunity to share openly and honestly about our goals,
barriers, opportunities, and results.

5. Assurance
40 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 1. Introduction
Spotlight:
Working with NIBE AB
to boost efficiency while
supporting sustainability
Last year, one of our global customers, NIBE AB, decided

2. Environmental Impact
to expand its involvement in our take-back programme
and ordered 10,000 circulator pumps – all to be fitted with
remanufactured, reused rotors. We diligently adhere to high
processing standards, so we were able to ensure that all these Looking ahead
circulators are of the same high-level quality, functionality and
reliability as their brand-new counterparts. It has been a major The upcoming EU CSRD will require us to comprehensively
step in improving the way we responsibly manage end-of-life report on Grundfos’ resource use and circular economy
products. goals, activities, processes and results. In 2024, we will work
Through our partnership with NIBE, we have been able on aligning our processes and data collection to ensure we
to increase the level of sustainable manufacturing without fully comply with the upcoming CSRD requirements once
compromising on efficiency, technology or performance. Plans the standards come into effect. To do this, we will focus on
for the second stage with NIBE have already started, where we establishing baseline measures for our focus themes and

3. Social Impact
will deliver 5,000 units of remanufactured pump houses. identify 2030 goals that will set us on an ambitious course
towards circular business.
We will also continue our efforts to scale the take-back
programme, as well as further ramp up our remanufacturing
efforts on returned end-of-life components. Our aim for
2024 will be to significantly scale up the number of pumps
produced with remanufactured components. Additionally,
in 2024, we will continue our work to reduce the volume of
waste diverted to landfill.

4. Business Ethics
5. Assurance
41 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 1. Introduction
2. Environmental Impact
3. Social Impact
Social impact

4. Business Ethics
43 Human Rights
46 Water Access
49 Diversity, Equity and Inclusion
52 Learning and Talent Development
55 Health, Safety and Wellbeing
59 Employee and Community Engagement

5. Assurance
42 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Human

2. Environmental Impact
Rights
Respecting human rights is an integral part of the
way we do business. Key actions in 2023 include
launching and amplifying Human Rights training
across the company, and conducting a Human
Rights Impact Assessment in the Philippines.

3. Social Impact
Our approach

As a company, we have a responsibility to respect the of regulators, such as the expected upcoming EU potential risks and impacts and use the findings to As part of our commitment, we conduct an annual
human rights of all our employees, and of the people Corporate Sustainability Due Diligence Directive further strengthen our respect for human rights by review of our identified, prioritised salient human rights
we interact with and impact through our business (CSDDD), and from customers and other stakeholders. integrating these learnings into internal policies and issues which are based on the results of our HRIAs,
activities across the value chain. Our work with human rights due diligence is an processes and implement mitigation actions. It is external trends and significant changes in our business

4. Business Ethics
Upholding and respecting human rights is everyone’s ongoing process. It starts with our Human Rights essential for us to engage with local stakeholders to or the locations in which we operate. The salient issues
responsibility at Grundfos. Group Sustainability works Policy which governs our approach, our commitments, better understand how our operations impact the we identify help us prioritise our due diligence efforts.
with respective functions to ensure implementation of expectations, and responsibilities to operate in line with people we interact with.
human rights considerations in our internal processes international regulations, conventions and guidance Another important area of our human rights Our salient human rights issues are:
and policies and to integrate them into our day-to-day defined by the OECD Guidelines for Multinational programme is awareness and capacity building as a • Forced labour
operations ensuring we deliver on our commitments, Enterprises, the UN Guiding Principles on Business and key enabler for meeting our commitments. We engage • Child labour and employment of minors
strategy, and goals. Human Rights (UNGPs), and the International Labour with both internal and external stakeholders to build • Non-discrimination, fair and equitable treatment
Increasing regulation and growing expectations Organization. capacity and deliver training to increase knowledge • Freedom of association and collective bargaining
confirm that human rights is a material topic to Our human rights programme aims to ensure that of human rights risks, how to act, mitigate, as well as • Health and Safety
Grundfos. It is critical to our business that we we respect and advance human rights. We conduct uphold our policies and procedures to ensure adherence • Working hours, wages and social security benefits
continue to advance our efforts to meet the demands human rights impact assessments (HRIAs) to identify with Grundfos’ standards and values. • Right to privacy

5. Assurance
43 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
2. Environmental Impact
Our progress

In 2023, we made progress in four main areas: provide an opportunity for us to work with
• Expanded our external knowledge-sharing peers and human rights experts to identify
network and collaboration. ways to avoid and address negative impacts
• Conducted Minimum Safeguards alignment through a knowledge-sharing process, helping
with the EU Taxonomy and prepared our us continually improve our processes and
readiness for the EU’s Corporate Sustainability performance in this area.
Due Diligence Directive (CSDDD). To ensure we meet the minimum safeguards

3. Social Impact
• Conducted a new Human Rights Impact criteria of the EU Taxonomy, we commissioned
Assessment in the Philippines. a UNGP/OECD gap assessment as part of
• Provided further guidance and improved Article 3 of the EU Taxonomy’s ‘Criteria for
employee capacity and awareness of human environmentally sustainable economic activities’,
rights. aligning with the minimum safeguards laid down
in Article 18. Overall, the assessment concludes Spotlight: Raising employee awareness and
We want to collaborate and we believe that, that Grundfos complies with the minimum capabilities through training and eLearning
collectively, we can better advance and promote safeguards as outlined in the EU Taxonomy
respect for human rights in business. In 2023, Regulation. We are currently implementing Following the revision of our Human Rights Policy in of what human rights are and how they relate to
we became members of the Nordic Business recommendations to further advance our efforts. 2022, we engaged with our employees to increase Grundfos. Additionally, we developed guidelines for our

4. Business Ethics
Network on Human Rights, which is facilitated As a result of the assessment, we have knowledge of human rights risks and impacts leaders and employees to support them in integrating
by the Danish Institute of Human Rights, identified an opportunity to enhance our within their local operations. We achieved this the Human Rights Policy into their daily work.
adding to our current memberships with the human rights due diligence process through through webinars and on-site training sessions In 2024, we will further increase the accessibility
Business for Social Responsibility (BSR) as well documentation refinement, which can further with employees, as well as suppliers and local and usage of both eLearning and guidelines by
our engagement with the BSR Human Rights empower us to uphold our commitments more service providers in China and India, following up on translating them into ten languages and embed the
Working Group. effectively. previously conducted HRIAs. eLearning into the onboarding learning development
Additionally, we continue to be an active Additionally, in 2023, we revised and published As part of Grundfos’ plan to strengthen our human plans for all new employees and management
member of the UN Global Compact and our annual Modern Slavery Act Report in rights programme, we identified the opportunity to positions globally.
participated in the UN Global Compact compliance with UK and Australian regulations, create an eLearning course to boost internal awareness
Business and Human Rights Accelerator as well as a new statement to comply with new
programme. These networks and programmes Norwegian Transparency Act.

5. Assurance
44 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Spotlight:
Human rights impact
assessment in the Philippines

To understand the actual and potential human rights risks and impacts across our
operations, it is crucial that we cover all types of operations. In October 2023, we
Human Rights Ambitions
conducted a new human rights impact assessment (HRIA) of our activities and

2. Environmental Impact
• Ensure preparedness for compliance with EU Corporate
presence in the Philippines. This involved visiting our own sites, conducting interviews
Sustainability Due Diligence legislation.
and training sessions with our own workforce, engaging with service providers, as well
• Ensure our business practices follow the UN Guiding as with local stakeholders to understand the impacts of our operations, and how we
Principles and further embed human rights due diligence can advance respect for human rights for both our own people and people we impact
into existing business policies and processes. in the country.
• Increase awareness and develop internal capacity This assessment helped us to reconfirm our need to further expand the scope of
on human rights risks and impacts. our Sustainable Supplier Management Program.
We also recognised the challenges relating to the safety of employees working at
customers’ sites or in conflict zones. Together with our team in the Philippines, we
are working on an action plan to address these issues. As part of the assessment, we
also identified local good practices to foster an inclusive and supportive workplace
environment. This includes extending health coverage to same-sex partners as well as

3. Social Impact
non-biological children of our employees, which is not standard procedure locally.
In addition, one of the key findings was the opportunity to promote a living wage
to contracted workers at our sites, as we identified a difference from the provided
national legal minimum wage.

4. Business Ethics
Looking ahead

In 2024, we will build on the progress through wider accessibility of our eLearning
we made in 2023 and prepare ourselves as well as other training sessions.
for EU CSRD and CSDDD compliance. In We will also conduct a human rights risk
addition, we will initiate a global living wage and saliency assessment to further improve
benchmarking assessment, and we will our understanding of risks and impacts across
continue to improve the knowledge capacity our value chain and continue to advance our
of our employees regarding human rights human rights efforts.

5. Assurance
45 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Water Access
‘Possibility in every drop’ is particularly

2. Environmental Impact
significant for Grundfos in light of our
ambitious goal to assist in providing clean
drinking water to 300 million people by 20306

Our approach

3. Social Impact
Water is instrumental in spurring economic growth, Our strategy hinges on forging strategic partnerships Regional roadmap deployment Assessment of impact
enhancing health, enabling learning and education, and and pioneering innovative solutions that make a The focus of our water access strategy is on sub- Assessing exactly how many people we are reaching
ensuring dignity and quality of life. Two billion people substantial difference in the water access arena. Saharan Africa and South Asia, where 78% of the through our efforts is challenging. We collect project
globally do not have the opportunities afforded by This focused and collaborative approach means we world’s water-poor live. Water Utility, the division specific data from our partners where possible. This
having clean water in the home. can support our partners more efficiently, providing within Grundfos that drives the water access ambition, is the most reliable method and this year’s data was
SafeWater, as a strategic business unit of Grundfos, solutions that fit the specific needs of each community. currently operates in 11 countries in these regions, with subject to audit for the first time, validating a limited
drives our ambition on water access, initiating and To achieve the 300 million goal, Grundfos knows 183 dedicated professionals who collaborate with our sample of our sales.
monitoring programmes across the business. In it must transcend traditional business approaches. partners to deliver our solutions. The SafeWater team, We also estimate our reach through sales figures.
addition, SafeWater proactively supports our NGO and Our Water Utility division plays a pivotal role in this, comprising specialists in water-access delivery, These numbers are data-informed, conservative
humanitarian partners in delivering vital water access engaging a diverse array of stakeholders across the is present across five countries. calculations.

4. Business Ethics
services globally. water service delivery spectrum. This includes not We proactively engage and collaborate with We developed the framework in line with the
To achieve our goal of bringing clean water to 300 only public utilities, but also governments financing customers, designers, consultants, suppliers and other JMP service ladder for drinking water, and country-
million people by 2030, we have created the Grundfos institutions, NGOs, and humanitarian organisations. partners to design water-access solutions. level data, supplementing that with direct customer
Water Access Roadmap, which charts a path to assist Grundfos provides solutions for only part of the We also provide training and technical support for and implementing partner data. We are continually
underserved markets and expand our role in the water value chain – we cannot achieve our goal implementation and maintenance. These solutions improving this methodology, incorporating richer
broader quest for sustainable water solutions. By alone. Therefore, we partner with other progressive range from high-performance projects for urban datasets as we get them.
offering smart, commercially viable, and sustainable sustainability-focused organisations around the world networks to small, solar-powered systems for
technologies, we aim to enhance water access for to enhance water access. off-grid communities.
communities and municipalities in need.

6
https://www.un.org/sustainabledevelopment/water-and-sanitation/

5. Assurance
46 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Our progress

In 2023, we continued to improve water million individuals have been confirmed (CTVET) in Ghana and launched the pilot Spotlight:
access for communities in need in a through a limited assurance verification laboratory at St. Paul’s Technical School in Are manual handpumps
variety of ways. An important step in this process. This number is likely to increase Kukurantumi. The ambition is to roll out a technology of the past?

2. Environmental Impact
process has been to quantify our impact so during this year, as we continue to collect this concept across TVETS in the rest of
Handpumps have served a valuable purpose in
far as part of the ecosystem. This is a and verify data. Ghana and beyond its borders.
increasing water access over recent decades. No one
significant milestone for Grundfos, as In 2023, we expanded our support in This training is vital as it enables rural
knows exactly how many handpumps are installed,
it gives us insights into where and how Africa’s Sahel region, which is currently in communities to be self-sufficient in
but estimates place it between 340,00 and 600,000
we are supporting progress. With this the grip of complex geopolitical tensions implementing, operating and maintaining
handpumps in rural sub-Saharan Africa. The failure
knowledge we can devise the best strategy that pose risks to water access. water systems.
rate is estimated to be between 26 and 33 per
to support our partners in multiplying their We have supported the International We also provided training for our
cent. The sustainability of these simple solutions
successes. Committee for the Red Cross (ICRC), partners, both face-to-face and online, on
is being brought into question. As a result, public
We continue to refine our methodology one of our valued partners, to improve a range of topics from end-to-end pump
authorities and organisations like UNICEF are
for estimating how many people we reach, water access to 99 project sites across 19 operations and troubleshooting to the
evaluating whether handpumps are the right choice.
which is based on sales in our Water Utility countries, including Chad, Nigeria, Niger, installation of Grundfos’ solar products,
There is a growing consensus that the starting point
division, incorporating data collected Mali, Sudan and Burkina Faso. such as the SQFlex. We conducted training
for improving access to water should begin with

3. Social Impact
through a survey of our distributors. Capability building is at the core of our in Kenya and Dubai at the ICRC’s knowledge
mechanised, durable solutions.
Using our improved methodology, we values. Grundfos and the Poul Due Jensen hubs on how to install, maintain and
Governments in sub-Saharan Africa are beginning
have begun reporting our impact as a Foundation supported the Global Water repair our most commonly used pump
to take the initiative through national programmes
cumulative number. We estimate that we Centre to develop a nationally approved solutions. In total, we provided training to
to replace handpumps. Entreprise Moderne de
have provided access to 7.05 million people curriculum for water system operators 294 individuals in 15 countries; in 2024 our
Technologie (EMT), a Grundfos partner, has installed
in 2023 and 34 million cumulatively since through the Commission for Technical target is to train 1,000 people.
Grundfos solar pumps for 50,000 people in the
2020. Out of the estimated total, 2.05 and Vocational Education and Training
Sokodé district of Togo under such an initiative. The
daily struggle to collect water was characterised
by the unreliability of the water supply, low water

4. Business Ethics
pressure, and significant physical exertion.
Grundfos submersible pumps (SP) were paired
Targets Data source 2023 Performance 2022 Performance Progress
with a solar inverter, PV panels, and PowerAdapt,
which facilitates the automatic switch between
Promote access to Reported project 2.05 million people reached 4 million people were Cumulative estimate
solar and grid power to enable water access 24/7.
drinking water for 300 data with drinking water in 2023. given access to drinking 34 million people
The deployment of efficient and sustainable solar-
million people by 2030 water in 2022. reached between
powered technology is part of a wider national
2020 and 2023 from
projects and calculated initiative to provide reliable water access for the
Sales data 5 million people 5.8 million people entire Togolese population by 2030.
sales data.
(estimate)

5. Assurance
47 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Risks and

2. Environmental Impact
opportunities Looking ahead
Spotlight: Water desalination
The primary challenge in realising our ambitious 2030 goal in Mykolaiv, Ukraine As individuals and communities climb the
lies in the scalability of innovative, transformative solutions water ladder and gain access to improved
Boreal Light GmbH, a German OEM a stable water supply for Mykolaiv's
for water access. Success hinges on fostering partnerships water sources, their quality of life improves
specialising in solar desalination, placed population of 500,000. In September
that encompass governments, financial institutions, significantly. Through our Water Access Ambition,
an order for 10 CRN pumps to be used 2023, we commissioned new desalination
technology providers, entrepreneurs, and installers we aim to extend our reach by a significant
in five solar desalination systems in the systems that will harness water from
with the necessary capabilities and reach. As a global 70% in 2024. The specific initiatives that have
city of Mykolaiv, Ukraine. The region faces the Black Sea, relying entirely on solar
entity, Grundfos is committed to playing a pivotal role in been targeted include increasing our footprint
significant challenges related to water energy generated from a 500 kW solar
establishing a coordinated movement that will ensure that in underserved markets, exploring financing
scarcity and electricity shortages, making field, making it Europe’s largest solar
scalable solutions become reality. mechanisms for water access, and entering into
these systems invaluable in ensuring desalination system.
Knowledge-sharing enables us to amplify and promote public-private partnerships at scale.

3. Social Impact
the importance of improved water access worldwide Achieving our goals will undeniably yield
and helps us understand our partners’ challenges. We many benefits, and we will proceed with due
participate in international conferences, such as the IGAD consideration for the potential collateral stresses
Expert Dialogue on Water Security in Kenya, and the OECD/ on local water resources and ecosystems.
AfDB Roundtable on Financing Water. We will continue to mitigate these
Regions where water-access initiatives are urgently challenges by promoting sustainable aquifer
Spotlight: Providing water in the desert
needed often overlap with war zones or are affected by management and efficient water-use practices
other security and law and order issues. These high-risk with our partners, embracing innovative water
Kargil is located 2,700 m above sealevel at availability. Glacial and spring water, as well
landscapes present challenges such as lack of infrastructure, technologies, adopting renewable energy sources
the foot of the Indian Himalayas in Cold as trucked water is used to provide for daily
corruption and security concerns that can hinder operations. for water infrastructure, and integrating climate-

4. Business Ethics
Desert Cultural Landscape at the foot of needs.
We mitigate these challenges by conducting detailed risk resilient practices into water management
the Himalayas. Based on its unique climatic Under the Jal Jeevan Mission, our local
assessments and collaborating with our partners. systems.
conditions (low precipitation and extreme channel partner, SIAB Surgiments, installed
A growing threat is the decline in donor funding within Going forward, we will seek to amplify our
weather variations) it contains a unique solarised drinking water solutions to provide
the sector. Such funding plays a vital role in supporting impact by training our partners and increasing
ecosystem, making it a UNESCO World reliable water supply to the area. Despite
projects in challenged economical environments, and its their skills in the use and potential of our
Heritage site. The communities that live how the hilly terrain made it challenging
reduced availability is harming the scale and effectiveness solutions. Assisting our partners with capacity-
in the Cold Desert experience significant to find even ground to install the solar
of our partners’ efforts. To drive solutions at scale, we are building is vital as it enhances our mutual
challenges, including accessibility, panels, more than 30,000 people are served
exploring alternative funding models, including results- capabilities and contributes to the long-term
topography, temperatures of -32°C, lack of via 500 solar water pumps (SQ Flex) and
based financing and humanitarian blended finance, in success of our projects.
vegetation, water scarcity and poor power submersible pumps (SPs).
collaboration with our partners, such as the International
Committee of the Red Cross (ICRC).

5. Assurance
48 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Diversity,
Equity and

2. Environmental Impact
Inclusion
We want to create a culture that champions respect
and fosters a diverse and inclusive workplace, where
people feel valued, respected, and supported. We
believe our approach to diversity, equity, and inclusion

3. Social Impact
(DE&I) builds competitive advantage.

Global Recruitment Standard: This is to ensure the transparency and consistency

of the recruitment process and its implementation across Grundfos. We aim to attract and
recruit talented and committed professionals who share our core values. We strive to
provide equal opportunities to all employees and applicants and want to guarantee that
our approach and practices in the talent acquisition process reflect an ethical approach:
fair, free of discrimination, effective, and efficient.

4. Business Ethics
Workplace Accommodations Commitment: We understand that people
Our approach with physical, mental, cognitive or sensory disabilities often experience barriers in everyday
life. We believe that anyone with a disability – temporary or permanent – should receive
We strive to have a global culture where everyone is included and valued reasonable workplace accommodations so that all Grundfos employees can bring their best
within Grundfos’ virtual and physical spaces. We aspire to prioritise selves to work.
equitable possibilities for all and to use diversity and inclusion as critical
keys for building a more sustainable future. We have three main DE&I DE&I Council: Our DE&I Council consists of eight appointed Grundfos leaders and two
elements that enable us to ensure we are providing equitable possibilities employee-elected members from across different business units in our organisation. Chaired by
to all. Each contributes to our recruitment processes, day-to-day our Group Vice President Sustainability, External Relations and Communications, the Council is
operations, and overall DE&I governance function. responsible for developing and driving aspirations, targets and initiatives of our DE&I efforts.

5. Assurance
49 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Five DE&I key themes:
• Leadership commitment
• Inclusive and equitable culture

2. Environmental Impact
• Recruitment and advancement of women
• Early career development
• Representation of people with disabilities

We have developed associated KPIs and targets for each

theme to support our ambition of providing equitable
possibilities to all.
These KPIs are measured through various points:
our annual employee motivation survey (EMS), our
voluntary, annual DE&I survey, and our HR dashboard.

Inclusive and equitable culture

3. Social Impact
We also look to foster inclusive environments through a
variety of initiatives, including our four global employee
resource groups (ERGs). The purpose of the ERGs is to
create a sense of belonging, provide a forum for knowledge
Our progress
sharing and collaboration, to develop future leaders, and to
invite their voices into company-wide business challenges
In 2023, our annual DE&I survey identified We work to continually educate leaders and content for employees to access at any time
and bring relevant solutions forward. Our four ERGs are:
important learnings on our current progress and HR to understand what a disability is, and to through our Viva Learning platform. In 2024, we
• Pride
indicated what further direction we should take ensure the needed psychological safety for our will offer Inclusive Leadership training to all our
• Abilities
moving forward. From the survey, we observed employees to disclose their disability. people managers as part of our newly-launched

4. Business Ethics
• Future
that a focus on promoting DE&I to our employees We made progress in 2023 towards the first global leadership development offers.
• Women
and management is having a positive effect, with generation of DE&I KPIs, with an increase in the By embedding this into basic leadership
employees largely acknowledging Grundfos’ DE&I number of women in leadership positions* that training, we want all our managers to further
We include DE&I factors in all our people processes,
efforts and seeing the benefits of our strategy, saw us approach our 2025 target of 27% with an promote inclusive practices throughout their
such as talent reviews and succession management.
specifically recognising that immediate managers end of year status of 25%. departments, and we intend to measure this
We also conduct DE&I learning and development training
act as inclusive leaders and support DE&I. Additionally, we progress our DE&I learning through our EMS scores going forward.
to support employees in understanding more about
Our current workforce is officially comprised of and development initiatives. In 2023, we
Grundfos’ approach to DE&I and the importance of
2.8% of employees who acknowledge a disability. developed ‘Learning Bites’, our bite-sized learning
fostering an inclusive workplace every day.

* Please see the Grundfos Annual Report for the representation of women in Board of Directors and top leadership level.

5. Assurance
50 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Board composition Targets 2023 Performance 2022 Performance Progress on target

Number of Leadership commitment 81 81 Status quo.

2. Environmental Impact
Board members “Leadership overall makes a positive difference

8 for diversity, equity and inclusion.”

Target end of 2025: 85

Number of independent
Board members:
Inclusive and equitable culture 81 78 95% of 2025 target
Women “My perspectives are heard and respected at work.” reached.
1 Target end of 2025: 85

Men

4 Recruitment and advancement of women 25% 24% 93% of 2025 target

3. Social Impact
Representation of women in leadership positions. reached.
Target end of 2025: 27%
Women on
the Board

2 Early career development (New KPI)

Voluntary turnover rate. Office: 12% 14% 2.3 points increase in
Number of employees as Office: Shop floor: 25% 23% voluntary turnover rate
Target end of 2025: 12.8% for shop floor employees.
elected Board members:
Shop floor:
Women

4. Business Ethics
Target end of 2025: 21.3% 1.6 points reduction in
1 voluntary turnover rate
for office employees.
Men

2
Representation of people with disabilities
Target end of 2025: 3.5% 2.8% 3.0% In 2023 we did not
progress as expected.

5. Assurance
51 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Learning
and Talent

2. Environmental Impact
Development
At Grundfos, we want to be a world-class
place to work, learn, and grow. In 2023, we
continued to strengthen our global leadership
and employee development programmes, and
maintained a consistently high Learn & Grow

3. Social Impact
score on 80 points.

Our approach

4. Business Ethics
We recognise that keeping our employees a learning environment, and we provide
Employee motivation and satisfaction survey results 2022 2023
challenged and motivated in their roles is them with the programmes, platforms, and
fundamental to the success of our business. tools to support a culture of continuous Learn & grow. 80 80
We are committed to empowering our improvement.
It is clear to me where I need to develop in my job. 80 80
employees to take ownership of their This is evidenced in our 2025 strategy
personal development. As a part of this, we and our focus on being a world-class place In my department, we openly discuss our mistakes in order to learn from them. 80 80
continue to foster a growth mindset across to work, learn and grow, building a high-
My immediate manager actively discusses my development with me. 80 80
Grundfos, which we believe highlights the performing learning organisation. This is
importance we place on learning at every also reflected in our yearly motivation and I utillise my opportunities to learn and grow. 80 81
level of the organisation. To achieve this, our satisfaction survey with stable high feedback
I know where to find the tools and resources to grow myself. 78 78
managers play an integral role in building on 80 points.

5. Assurance
52 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
2. Environmental Impact
Our progress

In 2023, we fully transitioned our learning opportunities to empower its graduates to

platforms towards a single destination in acquire and enhance sustainability skills.
Microsoft Viva Learning, and this has simplified The graduate programme has been
the way our employees undertake learning successful in Denmark and expanded to India
activities. Additionally, by shifting to Viva and China in 2021 and to the USA in 2022. In
Learning, we have made learning more relevant 2023, the programme had a batch of 20 global
to our employees’ daily work with a focus on graduates – 3 from India, China and the USA,
the skills that matter most to our employees. and 11 from Denmark. We aim to include
This includes supporting communities of talents from three to four more countries in

3. Social Impact
practice across Grundfos to build a habit of 2024 to create a stronger global cohort and
continuous learning. presence. Our goal is to create a community of
In 2023, we redesigned our global leadership like-minded individuals from early careers who
and employee development portfolio to will contribute to a sustainable future.
provide for diverse needs of different employee Furthermore, in 2023, our ‘Value Behaviour’
groups like young talent, women and learning journeys were offered to all
experienced managers. Through the creation employees. This has helped to strengthen our
and launch of 66 digital learning journeys common understanding of what Grundfos’
across Grundfos, we have been able to provide core values mean with respect to the way we

4. Business Ethics
a more diverse range of skills development work and collaborate. Lastly, we bolstered
opportunities for key groups. our performance and development dialogues
Our Global Graduate Programme aims (PDD) over the course of 2023. This has helped
to attract the best talents available in the to support our employees in navigating their
market. With an increasing number of young careers at Grundfos and has improved the
employees looking for employers who align quality and engagement between our leaders
with their values and offer a sense of purpose, and their teams. We will measure the effect of
The Grundfos Global Graduate Programme these efforts in 2024.
provides training programmes and project

5. Assurance
53 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT
Risks and

1. Introduction
opportunities

Over the past year, we have experienced a significant shift

in our ways of working by the creation of a hybrid workplace
environment. Despite the risks associated with a hybrid
structure which enables our staff to work from Grundfos
locations or their own home, we have been able to nurture a
Spotlight:

2. Environmental Impact
healthier work-life balance.
Transitioning to
Changing our work habits has furthermore provided us
the use of Microsoft
with the opportunity to support our employees in adapting to
Viva Learning
change and building general resilience towards change. Our
Following an employee survey in 2023, efforts are ultimately focused on enabling our employees to
there was a clear need to make it easier develop the skills for the future.
for globally dispersed employees to find
opportunities to learn, especially as
Looking ahead
the business continues to expand. By
adopting Viva Learning, Grundfos created
Our 2025 ambition is to establish Grundfos as a high-performing
a learning platform destination that is
learning organisation. To do this, we will explore ways to bring
easily accessible, simple to use and meets
forward broader ranges of development opportunities for our

3. Social Impact
employees where they already work.
employees, focusing on:
Through a centralised hub of learning
• Mentoring and coaching programmes
content and resources, our staff are able
• Learning analytics to improve tracking and transparency on
to not just learn and build new skills, but
learning KPIs
also share and recommend training across
• Tailored development programmes.
teams and business divisions.

In 2024, we will launch further programmes within our leadership

“We want to empower
development portfolio, creating programmes for new managers,
Grundfos’ employees to
experienced managers and executive managers. In 2024, we will
drive their own learning and

4. Business Ethics
launch a set of three new global talent programmes that aim
development. That’s why we
at developing and helping our talents to take on new and more
have introduced a one-stop
complex roles. Additionally, we will implement a global learning
shop for learning in the flow
programme for all plant supervisors in our manufacturing facilities.
of work.”
We furthermore encourage our employees to identify external
Marcus Jøhnck Bendt Haure, training opportunities that uniquely position them in their career
Product Owner for Learn & Grow Technologies aspirations, and we bring this perspective into the performance
at Grundfos and development dialogue for each employee. We continue to
invest in our digital transformation of Grundfos, and we expect this
will continue to impact which skills are in demand for the future.

5. Assurance
54 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Health, Safety

2. Environmental Impact
and Wellbeing
In 2023, we reduced our Lost Time Injury Rate (LTIR)
by 13% to 1.77 and achieved the highest ever score
of 78 points in our Employee Motivation Survey
reaching our 2025 target ahead of time.

3. Social Impact
Our health, safety and wellbeing ambition
revolves around three core behaviours:
Our approach
Be present
Our ambition is to drive the health, safety, and wellbeing of our employees Pay attention to your own and to your co-workers’ needs.

4. Business Ethics
by providing a safe work environment, preventing injuries, ensuring good
Take action
physical conditions and psychological balance. We want to transition from
Demonstrate care for yourself and your colleagues. Have the courage to discuss
a culture where health, safety and wellbeing is created by some, to
risk situations openly with others even when they are beyond the scope of your
a culture where everybody is motivated to take a collective responsibility.
responsibility.
As part of our integrated management system, we have been
accredited to the ISO 45001 standard for Occupational Health and Safety Don’t compromise
Management since 2000. This encompasses our overall approach to Look for ways to continuously improve, report every hazard and dangerous
health, safety and wellbeing. situation. Compromising on health, safety and wellbeing is not an option.

5. Assurance
55 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Our progress in 2023

In 2023, we continued to celebrate Health, Safety and Wellbeing

Week to raise further awareness of the importance of good

2. Environmental Impact
practice regarding physical health and safety, and mental health
and wellbeing. During the week, we promoted the launch of
our digital solution for risk assessments to improve people’s risk
awareness. The week also featured a range of sessions designed
to help relieve stress and improve wellbeing. These sessions
provided colleagues with the tools, techniques, and solutions to
navigate potential work-related stressors.

Employee motivation and satisfaction

In 2023, our employee satisfaction and motivational survey was
completed with the highest participation rate in its history. 96%
of the surveyed Grundfos employees made their voices heard,

3. Social Impact
providing valuable insights into different aspects of work life in
our company. This robust feedback provides a solid basis to make
Grundfos an even better place to work, learn and grow.
The Grundfos Group score is at the highest ever on index 78,
well above top-in-class peers and very close to the top 10%.
Overall, the conclusion from the Employee Motivation Survey
(EMS) 2023 is that Grundfos is an organisation with a highly
engaged workforce, our employees like their jobs, colleagues and
team managers. Grundfos is an organisation with a high level of In 2023, we focused our engagement and wellbeing
safety trust and respect and continuously improving wellbeing. efforts on the following three key EMS areas:

4. Business Ethics
Mental health and wellbeing Simplicity and speed Stress and wellbeing Collaboration and
In our drive to better our employees’ wellbeing and improve our We investigated three complex HR We identified the need to ensure that communication
stress scores, we completed the development of our Engagement processes and piloted how to reduce we have support in place for all levels We recognise the importance of
and Wellbeing Roadmap. The roadmap is built to cater for six root complexity, thereby ensuring improvement – organisation, managers, teams, and collaboration and communication to
causes detected in a deep dive analysis conducted end of 2022. of efficiency and reduction in the workload individuals to mitigate symptoms of help employees better understand their
The roadmap outlines the plans, initiatives and projects that we for our employees, allowing them to stress and improve wellbeing. roles and responsibilities across their
aim to conduct up to 2025. prioritise their important tasks. teams, following Grundfos’ organisational
restructure in 2022.

5. Assurance
56 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
2. Environmental Impact
To mitigate our principal health and safety
risks and to achieve our 2025 Lost Time Injury
Rate (LTIR) target of 1.5, we must develop an
interdependent safety culture.

3. Social Impact
Team Health Project with the systemic challenges at a team level. mandatory health and safety training, we included Risks related to health,
In 2023, we identified the need to work with teams and Along with conducting the Team Health Project, we our risk awareness eLearning training as part of the safety, and wellbeing
managers who were at a high risk of stress, as identified upskilled and built a ‘community of facilitators’, who onboarding process for all office-based workers. We also For health and safety at Grundfos, we monitor the
by their EMS scores. As a result, we developed the Team can conduct the Team Health workshops independently conducted Managing Safely training, accredited by the risks and work to mitigate them accordingly. In 2023,

4. Business Ethics
Health Project, where we directly supported 29 high- within their business area. The project generated Institution of Occupational Safety and Health (IOSH), at our most severe cases happened within the areas
risk teams through the facilitation of three focused and positive yields on employees’ levels of stress and three global sites in France, the UK, and the USA. of moving machine parts, hazardous surfaces, and
dedicated workshops. Following the workshops, we wellbeing. Furthermore, we launched our ‘Last-Minute Risk manual handling (ergonomics). We mitigate these
were able to identify three systemic challenges which Assessment Learning Programme’ specifically for our risks by creating safer work conditions and raising risk
were driving stress: Physical health and safety 900 Service Delivery employees. Ultimately, these awareness amongst colleagues simultaneously, and we
• Unclear priorities To mitigate our principal health and safety risks and to initiatives have helped to develop a more proactive monitor the impact through our LTIR performance.
• Unclear roles and responsibilities achieve our 2025 Lost Time Injury Rate (LTIR) target of approach to health and safety in our company. This is
• Accelerating work without clear processes. 1.5, we must develop an interdependent safety culture. demonstrated in the reduction of our LTIR score in
In 2023, one of the ways we set out to achieve this was 2023 by 13%.
Using these insights, we developed a substantial by improving risk awareness and building competencies
catalogue with supporting tools and processes to work on risk assessment processes. In addition to our

5. Assurance
57 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Looking ahead

For physical health and safety, we plan to from a 5-point system to a 10-point system
launch our new TRIR metric (Total Recordable as this is in line with all other questions

2. Environmental Impact
Injury Ratio) which will enable us to begin asked in our employee motivation survey.
monitoring all forms of reportable injuries We believe this will provide more accurate
and implement measures for reducing their data on employees’ perceived levels of stress,
occurrences. We will also continue the focus workload, and other wellbeing metrics. We
on risk assessments across the organisation. will continue to build our community of
For mental health and wellbeing, our plans facilitators for the Team Health initiative to
centre around achieving our long-term goal encompass more teams and divisions. To
of reducing stress levels to 12%. Following improve a healthy workplace, we will train
the successful development of our roadmap health advisors globally as a local first point
and delivery of initiatives on our key focus of entry to pick up symptoms of stress and
areas for 2023, we want to strengthen the to give our employees access to immediate
foundation we have developed. support. Regarding healthy work behaviours,

3. Social Impact
We plan to continue to improve the we will launch a micro-break platform, which
impact of our employee motivation survey will provide tools and techniques for our
process by increasing our scoring metrics employees to practice healthy working habits.

2023 2022 Progress

Targets Performance Performance on target

Lost Time Injury (LTI) ratio 1.77 2.06 In 2023, we reduced our Lost Time Injury

4. Business Ethics
(LTIR) to 1.5 by 2025. Rate (LTIR) by 13% to 1.77.

Reduce the level of stress 21% 22% In 2023 we reduced the level of stress
to 12% by 2025. to 21%, which is a 1 percentage point
improvement on 2022 figures.

Employee satisfaction and motivation 78 76 2025 target reached.

scores of 78 in our annual employee
motivation survey (EMS) in 2025.

5. Assurance
58 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Employee and
Community

2. Environmental Impact
Engagement
In 2023, employees continued to support the Water2Life
programme, and 53 employee-led community
development projects received a total of DKK 21.7m
from the Poul Due Jensen Foundation Community Grants.

3. Social Impact
Our approach

Joining forces to make a positive impact in local • Community Engagement Grants: The Community
communities is at the heart of the Grundfos culture. Grants are funded by the Poul Due Jensen
We experience a wide array of benefits when our Foundation to support projects contributing to
employees and their communities thrive. Hence, improving water access, the natural environment,
Grundfos actively encourages its people to support and social standards.
the communities and local organisations they care
about the most. To guide our approach supporting our local

4. Business Ethics
Ultimately, we aim to improve the quality of life and communities, we were proud to publish our Global
general wellbeing of the communities we work with Volunteering Policy at the end of 2022. The policy
through our employee and community engagement applies to all Grundfos regular full-time, part-time and
programmes, such as: fixed-term employees, including internal temporary
workers. Through this policy, our employees will be
• Water2Life (W2L): A programme initiated and able to take three days of paid time off each year to
driven by employees that seeks to deliver clean do volunteer work towards improving water access,
water to impoverished communities. the natural environment, and social standards. We
• Employee volunteering: Our employees volunteer also use a Community Engagement Portal to track
in the areas of water, climate, and people, all of our volunteering impact, as well as to process and
which directly relate to our purpose. showcase our community grants.

5. Assurance
59 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Our progress

Employee participation in individual volunteering

2. Environmental Impact
programmes continues to be lower than our
expectations. In 2023, 1% of our workforce
have registered their participation in employee
volunteering. As a result, we are aware that further
work is needed to achieve our target of 20% by
the end of 2025. It takes time to integrate a new
behavioural mindset into the organisation, and
we will continue to encourage this bottom-up as
well as top-down, while removing barriers to ease
participation and registration, as we can see that
many have volunteered but not registered their
participation.

3. Social Impact
Through Water2Life, our projects in Nigeria
and Venezuela, we continue to contribute to our
Water2Life target of providing 100,000 people with
access to drinking water by 2030. For our water
project in India we have however experienced delays
due to unexpected challenges with water quality. We
have in 2023 installed a larger and improved water
system, which is now providing clean drinking water
to the community.
With respect to community grants from the Poul

4. Business Ethics
Due Jensen Foundation, the pool of funds was 2025 Targets 2023 Performance 2022 Performance Progress
increased from DKK 20m to DKK 25m in 2023. We
always intend to use the funds to improve social Increase employee volunteering 1% n/a Progress has not been as expected.
standards and have a positive impact on local participation to 20% by 2025, In 2024 we are enhancing our
communities. At the end of 2023, DKK 21.7m of and 50% by 2030. communication efforts to encourage
community grants were issued to 53 projects. more colleagues to volunteer.

Provide 100,000 people with Status quo. 65,168 people were provided Due to delays in our projects we are
access to drinking water through access to clean drinking water. not able to report 2023 numbers in
Water2Life by 2030. this report.

5. Assurance
60 \ GRUNDFOS SUSTAINABILITY REPORT 2023
SOCIAL IMPACT

1. Introduction
Risks and
opportunities

Water2Life
Partner risks, supply chain challenges, on-site local challenges and

2. Environmental Impact
internal donation support are the main risks associated with our
Water2Life programme. We mitigate these risks by carefully selecting
partners who are equipped and experienced with these challenges,
and by creating awareness through internal channels and hosting
fundraising events for our employees. We see an opportunity to
further strengthen Water2Life with more funding and donations
and through a larger network of volunteers.

Community grants
Our employee involvement in the community grants process deepens
the connection with our organisation. We see that we have an
amazing opportunity to benefit all local communities where we

3. Social Impact
operate, as well as involve our employees in the process.

Volunteering
Spotlight: Improving the natural
There is a risk of employees not feeling allowed to volunteer or of
environment through collaboration
them logging their time incorrectly or not at all, despite our approved
Through our new Volunteering Policy, improving policy for three days of paid volunteering every year. Furthermore,
the natural environment and working to improve there is a risk of negative social impact through volunteering.
the climate is one of our three purposes for which We mitigate these risks through our Global Volunteering Policy
our employees can take paid leave to volunteer. awareness campaigns and ensure that each volunteer request is
In October 2023, over 100 Grundfos employees approved by a local people leader.

4. Business Ethics
in Viborg, Denmark, utilised half of their working
day to improve the natural environment by
planting trees. Through collaborating with the Looking ahead
Growing Trees Network, Grundfos donated
55,000 trees, a thousand of which were planted In 2024, we will partner with the not-for-profit Water Mission, once
by our employees. We have already committed again tapping into their expertise in building safe water systems
to collaborating again with the Growing Trees in the more remote parts of the world, this time in Mexico. We will
Network in 2024 and continue to use this also give extra attention to communicating about volunteering
initiative to improve the natural environment. opportunities and our Community Engagement Grants; these
opportunities are tangible examples of how our employees can
make a significant difference locally.

5. Assurance
61 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 1. Introduction
2. Environmental Impact
3. Social Impact
Business Ethics

4. Business Ethics
63 Quality, Product Compliance
and Customer Safety
64 Business Conduct
68 Sustainable Supply Chain
71 Tax Governance

5. Assurance
62 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
Quality, Product
Compliance and

2. Environmental Impact
Customer Safety
Quality is at the very core of our products, brand,
value propositions, and how we work and think.
By upholding high-quality standards, we continuously
work to ensure compliance of all products, as well
as our customers’ safety when using the products.

3. Social Impact
Our approach

Our approach to quality, product compliance and relate to electrical and mechanical issues, radiated • Test and verify products to international safety Our success also depends on the quality provided by
customer safety is rooted in our company purpose. energy and regulated materials or substances. standards such as IEC 60335, IEC 61010, IEC 61800, our suppliers. Through our Procurement, Supplier
Our Grundfos Quality Policy defines our overarching IEC 60034. Quality and Sourcing Sustainability teams, we are
approach to quality and applies universally to all Therefore, to mitigate this risk, we take the following • Certify all products coming into contact with committed to developing strong partnerships and
companies within the Grundfos Group. To ensure actions as part of our management approach: drinking water according to relevant certification cooperating with our suppliers to continue driving

4. Business Ethics
that our products and solutions always meet quality • Ensure use of CE-marking where relevant. schemes, and assess water contact materials on a quality performance and results.
specifications, we are certified to the ISO 9001 • Certify that all domestic products are a part of the regular basis.
Standard for Quality Management, and this informs the IEC CB scheme. Looking ahead
structured process we follow during the development • Develop a Technical Construction File for all products. In the event of a non-conformity, we have established
and market introduction of new offerings. Currently, 41 • Conduct supplier audits to ensure adherence to the a structured processes to determine its severity. For In 2024, we will continue our commitment to deliver
Grundfos entities – including 17 plants, 6 development Grundfos Focus List, which details a list of chemical minor non-conformities, we follow our regular claim products and services that not only meet regulatory
centres, 10 assembly centres, 7 sales offices and substances that are banned or restricted from use management procedures, while more critical non- requirements but also fulfil the expectations of our
our headquarters – participate in the ISO multisite in our products. conformities trigger an escalation process. valued customers. We are starting initiatives to digitalise
certification programme. • Undertake safety risk assessments, including Regardless of their severity, all non-conformities and orchestrate product compliance data so that, going
Our offerings could impact the health and safety of chemical and product compliance checks, on are documented and serve as valuable insights to forward, we can make it easily available to customers
our customers if not managed responsibly. These risks products. continuously improve our quality performance. and authorities.

5. Assurance
63 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
Business
Conduct

2. Environmental Impact
At Grundfos, we see business ethics as a fundamental
aspect of our corporate culture and long-term success.
In 2023, all employees conducted mandatory training,
and a new and expanded Code of Conduct was approved
by Group Management and the Board of Directors.

3. Social Impact
Our approach

Our deep commitment to the sustainability encouraged but embedded in the fabric of
agenda and our global presence means we need Grundfos.
to act responsibly at all times. Grundfos Ethics Committee oversees the
Business ethics is the framework that guides upholding of ethical standards across Grundfos.
conduct in the business world. At Grundfos, we Our Code of Conduct (CoC) provides guidance
recognise the importance of ethical behaviour for our employees in dilemmas or situations
not only as a legal and regulatory requirement they may face as part of their job. All Grundfos

4. Business Ethics
but also as a fundamental aspect of building employees are required to adhere to the CoC.
trust, fostering a positive corporate culture, Should any breaches of our CoC be reported, we
and sustaining long-term success. conduct a formal investigation process and take
Business ethics at Grundfos is driven by appropriate action. If local laws and regulations
a holistic approach across our value chain are more stringent than our CoC, we follow the
that combines our purpose, our values, local legislation.
leadership, employee engagement, stakeholder Several of the CoC topics are elaborated
expectations, legal compliance, industry further in policies, procedures, compliance
standards and social responsibilities. By programmes, guidelines and external
embracing these factors, we aspire to foster commitments.
a culture where ethical behaviour is not only

5. Assurance
64 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
Our progress in 2023

2. Environmental Impact
In February 2023, the annual mandatory training in
Grundfos' Code of Conduct (CoC) was completed for all
employees, including our shop-floor workers. All new
employees joining throughout 2023 also completed the
CoC training.
In the autumn of 2023, a new CoC was approved
by Group Management and the Board of Directors.
This updated version reflects new topics, such as the
deployment of artificial intelligence (AI) tools, and
contains more inclusive and accessible language in line
with our aspiration on diversity, equity, and inclusion.

3. Social Impact
The new CoC will be launched globally in 2024,
following translation into multiple languages. After the
launch, we will conduct training for all employees to
enable awareness and understanding of the elements
in the CoC. 4% 2%
2%
Whistleblower reports 2%
Grievance mechanisms
Grundfos’ goal is to make the reporting of concerns The total number of reported 40%
about ethical and compliance issues as easy as possible. whistleblower cases in 2023 was 53.
20%

4. Business Ethics
Our whistleblower system gives all employees and The reported cases were in the following
third parties cooperating with Grundfos as well as other categories:
relevant stakeholders a channel to report suspected Harassment, Compliance with Laws and
breaches or non-compliance with Grundfos’ CoC. The Regulation, Travel, Entertainment, Gifts
reported cases are processed by the Grundfos Ethics and Personal Benefits, Bookkeeping Harrassment
Committee. and Accounts, Non-Code of Conduct. Compliance with Laws and Regulation
In 2023, we found four of the reported Travel, Entertainment, Gifts and Personal Benefits
Bookkeeping and Accounts
whistleblower cases to be breaches of
Non-Code of Conduct
the Grundfos Code of Conduct. Insufficient Information
Out of Scope
15% Cases still open by end of 2023

5. Assurance
13%
65 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
In 2023, general legal compliance training for We have defined the Grundfos Cyber Security
employees with a sales focus was held. This Framework based on the Cyber Threat Model
training included basic elements of competition Zero Trust. The framework is built on a series
law. Further, targeted ongoing monitoring, of international standards and links into our
guidance, training, and counselling is carried Enterprise Risk Management process which

2. Environmental Impact
out by Group Legal to avoid anti-competitive considers risk appetite and impact.
practices. New compliance measures covering
competition law aspects were also prepared Anti-corruption and bribery
in 2023, concerning particularly the reseller Group Legal investigate all cases of bribery and
partners of Grundfos. Additionally, a new corruption, and take the relevant actions. We
competition law action plan is in progress to believe that businesses should work against
make risk management within this area even corruption in all its forms, including extortion
more structured and comprehensive. The new and bribery.
action plan is planned to launch in 2024, providing
general and division-specific competition law Conflicts of interest
training in connection with rolling out our new Grundfos will ensure that business decisions are
Code of Conduct. made in the best interest of the organisation. We

3. Social Impact
do not allow employees to use their position for
Data and customer privacy personal gain or any other interest other than
Grundfos ensures compliance with applicable Grundfos’ interest.
data privacy legislation such as the General Data
Protection Regulation (GDPR) in the EU, the Cyber Anti-discrimination
Security Law (CSL) in China, and the California Grundfos will provide an inclusive environment
Consumer Privacy Act (CCPA) in the USA. We for all members of our staff, clients, volunteers,
assign mandatory training for all new employees, subcontractors, vendors, customers and any other
tailored to their specific roles; for example, we parties doing business with Grundfos. Any form
have developed bespoke data privacy training for of discrimination is strictly prohibited, and we are

4. Business Ethics
Marketing, Sales, HR and IT Services. committed to the elimination of discrimination
in respect of employment and occupation.
New Whistleblower Policy option within our whistleblower system to report Cyber security
Grundfos updated its Whistleblower Policy and concerns via voice recording using mobile phones. In recent years, cyber security risks have been Harassment prevention
a related Data Privacy Policy in line with the EU rated high by Grundfos Group Enterprise risk Grundfos is committed to providing a safe and
Whistleblowing Directive, including fundamental Ensuring fair competition management with an increasing global threat inclusive workplace free of abuse and harassment.
principles such as confidentiality and non-retaliation. Online training programmes on fair and legal level. We monitor and mitigate six key risk areas: We provide a welcoming environment for
As a result of the policy update, Grundfos is currently competition are available for all Grundfos employees, ERP IT, production line IT, digital products, sensitive all members of our staff, clients, volunteers,
reviewing the procedures and ways of working of the and have been tailored for the USA, EU, and the company information, people information (GDPR) subcontractors, vendors, customers and any
Ethics Committee, with a plan to adopt the new rules majority of Asia. For the most exposed employee and cyber fraud with a focus on awareness, other parties doing business with Grundfos
of procedure in early 2024. We also implemented an groups, a basic competition law training is mandatory. ownership and risk mitigations. and a workplace free of harassment or abuse.

5. Assurance
66 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
Risks and opportunities

To manage all identified legal risks, we go through our

annual Legal Risk Management process. This culminates
in the development of our Legal Risk Management Report.
The purpose of this report is to identify and assess key
legal risks to mitigate and save Grundfos from significant

2. Environmental Impact
negative financial and operational impact. Each identified
material risk is tracked on an annual basis to assess if any
risks need to be escalated and followed up with mitigation
measures. This report is overseen by the General Counsel,
and necessary mitigating and preventive actions are taken.
This year has seen the rapid development of AI and its
use in tools and software, which will only accelerate in
years to come.
AI also presents a significant opportunity for Grundfos,
as we can use it in new digital technologies within our risk
and compliance programmes. To manage the risks arising
from AI and realise the opportunities related to it, we will

3. Social Impact
introduce processes and ways of working to ensure that
risks linked to the use and application of AI are addressed.

Looking ahead

In 2024, we will roll out our new CoC, and facilitate

4. Business Ethics
training for all employees. We will also conduct tailored
compliance training for our Sales, Service, Purchasing,
Finance, Branding, Solution and Marketing departments
across Grundfos, covering competition law, sanctions and
export control, anti-money laundry, bribery, corruption, and
selected topics from the CoC.
We will continue to monitor all our legal risks and
those resulting from Grundfos’ engagements. We will also
strengthen our cyber security measures in our operating
procedures in our production facilities, in line with the EU’s
NIS2 Directive.

5. Assurance
67 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
Sustainable

2. Environmental Impact
Supply Chain
At Grundfos, we are committed to driving social and
environmental sustainability in our supply chain. By the
end of 2023 we onboarded 408 suppliers to the EcoVadis
platform for sustainability performance monitoring,
and saw a 92% compliance rate on supplier audits.

3. Social Impact
Our approach Spotlight:
Sustainability
Supply chain management plays an integral role in delivering Strategy and policy deployment
Supplier Award
Grundfos’ sustainability targets and our customers expect us Ensuring that legal compliance, ethical practices, and business continuity is embedded
to provide products and services that adhere to high standards in our supplier collaboration and sourcing decisions through our supplier code of conduct, In 2023, we launched the Grundfos Sustainability

4. Business Ethics
for ethical sourcing and sustainability. Therefore, we set high as well as ongoing due diligence across our supply chain. Supplier Award. The Sustainability Supplier Award
expectations to our suppliers, and our ambition is to build a is given yearly to a direct and an indirect supplier,
procurement process where sustainability is integrated as a Supplier performance monitoring who have shown outstanding sustainability
core element in all our sourcing activities. Evaluating our suppliers’ overall sustainability performance through online assessments and on- performance throughout the previous year.
Through our Sustainable Supplier Management Program, site audits, collecting carbon and water footprint data, and gathering data to eliminate the use Grundfos presents the award in recognition of
we actively support our suppliers and other partners to of restricted substances and ensure that sourced minerals do not come from conflicted areas. excellent performance in CSR and carbon maturity,
value sustainability as much as we do. Our Supplier Code a contribution to building transparency in
of Conduct (SCoC) sets out the standards and expectations Supplier engagement environmental footprint reduction, and verifying
which we expect our suppliers to uphold in their interactions To enable continuous improvement and upholding of our supplier code of conduct, we compliance in chemical and conflict minerals.
with us and their own supply chain. To drive deployment and collaborate with suppliers on capability building and deployment of additional programmes
integration, we focus on the following key areas: and processes to drive sustainability in our supply chain.

5. Assurance
68 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
2. Environmental Impact
3. Social Impact
Our progress in 2023

Grundfos has approximately 30,000 suppliers who have Sourcing Roadmap, significant initiatives were purchased goods [1a] and services [1b]) – short-term categories where we can achieve the highest impact
varying levels of maturity with respect to executed to drive sustainability standards throughout activity list by 2025 and scaling up by 2030. by raising awareness.
sustainability performance. Monitoring and engaging our supply chain. • Development of a supply chain-specific water risk • Emphasis on the importance of process
our suppliers on a wider range of sustainability topics management and supplier engagement program set transparency, sustainability policy and governance
enable us to strive for a long-term, high-performance Updating our Sustainable Sourcing Roadmap to be ready by 2025. standards as a continuous activity, development of

4. Business Ethics
approach and mitigate sustainability-related risks We are working to ensure our SCoC is a prerequisite • Collecting chemical compliance related information a dedicated site on the internal platform Integral
across our supply chain. when selecting suppliers, and that it implements from our supply base on an extended scope. Management System (IMS).
Previously, supplier performance was measured using business-related consequences for suppliers not • Driving conflict minerals related data collection on a
a corporate social responsibility (CSR) focused KPI. In complying with the code. In 2023, we updated our revised supplier scope. Improving the measurement of supplier performance
2023, we began measuring performance by introducing Sustainable Sourcing Roadmap to secure due diligence • Supplier performance measurement: regular We extended our suppliers’ performance measurement
a new KPI framework for sustainable sourcing, which and to mitigate these risks. assessment and monitoring of supplier performance with the launch of our new Sustainable Sourcing KPI
adds to our CSR-focusedmetric by covering a wide range on the criteria within our Sourcing Sustainability KPI. an industry-unique measurement approach that covers
of sustainability aspects, including carbon and water Our updated roadmap covers core elements, including: • Supplier collaboration, support, and promotion a wide range of sustainability aspects. The KPI relies
footprints, chemical compliance, and conflict minerals. • The promotion of human rights standards and the of positive actions through our yearly Sustainable on four main topics and six indicators.
To further drive the deployment of our Sustainable mitigation of risks as a continuous activity. Supplier Award, deploying Sustainability Summit See table on next page.
Supplier Management Programme and Sustainable • Decarbonisation of supply chain (Scope 3 upstream, and category-specific supplier webinars in those

5. Assurance
69 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
Looking ahead

Our long-term goal is to have a broad supplier Statement outlines Grundfos’ approach to responsible such as human rights and conflict minerals across our Our objective is to establish a baseline and set
performance measurement approach and to integrate mineral sourcing, including conflict minerals, to ensure supply chain will also be crucial to ensuring compliance reduction ambitions. This initiative is crucial because

2. Environmental Impact
this into sourcing decisions. The Sourcing Sustainability that our products and water solutions are free from with growing legislative requirements. Some of our our supplier base currently ranks as the most significant
Index we have established supports us in a greater materials that finance or benefit armed groups engaged focus areas for 2024 will be to increase transparency contributor to Grundfos’ overall water footprint.
understanding of our suppliers’ sustainability activities, in human rights abuses. Alongside the Conflict Minerals in our processes, strengthen our data collection and
risks, and opportunities, which is also required in the Statement, we are also launching our Sustainable quality, and establish supplier engagement programmes
EU CSRD. Procurement Policy. which take into consideration the level of maturity
In 2024, we will publish a new, company-wide Looking at 2024 and beyond, it will be paramount for demonstrated by our suppliers.
statement on responsible minerals that details our us to have clear visibility of our supply chain through Next year, we will also be dedicated to developing our
stance on conflict minerals. The Conflict Minerals robust due diligence. Addressing and mitigating risks Supply Chain Water strategy.

Results from the new KPIs used to inform the Sourcing Sustainability Index can be found below.

3. Social Impact
KPI 2023 Target 2023 Performance 2024 Target

Sourcing Sustainability Index 93% 100% 96%

Performance table

2025 targets 2023 Performance 2022 Performance Progress on target

4. Business Ethics
500 suppliers to be onboarded to 408 304 82%
be Ecovadis platform by 2025.

Compliance rate of 91% for 92% 90% 101%

all audited suppliers by 2025.

Increase the coverage of our indirect area 29% 23% 83%

audits and assessments to 35% by 2025.

100% data coverage about conflict minerals 93% 88% 93%

within the identified supplier scope by 2025.

5. Assurance
70 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
Grundfos strives to manage our business responsibly and play

Tax
an active role in society. Strong governance and transparency
on tax is an essential part of our business. We act as a

2. Environmental Impact
Governance
responsible citizen in all jurisdictions in which we operate, and
contributed DKK 6.5 billion in tax payments globally in FY 2023.

Our approach

Our Group Policies and Global Tax Principles state we Officer (CFO), who ensures the appropriate people, The purpose of the training is to ensure awareness and March 2022 and decided to fully close the business in

3. Social Impact
will act as a responsible tax citizen and strive to ensure processes and systems are in place to comply with local understanding of new rules, regulations or laws. August 2022. Activities in 2023 relate to being formal
a fair and reasonable allocation of the group profits in and international tax laws. legal owner of the companies and related close-down
the jurisdictions and communities where we have a The CFO delegates responsibility for managing the Responsible tax behaviour activities.
presence, complying with requirements for direct and areas of corporate income tax, transfer pricing and VAT We see taxes and responsible behaviour on taxes as Where we identify any errors related to our
indirect taxes. Our Group Policies are underpinned by to the Head of Group Tax, employee taxes to the Head an essential part of a well-functioning society and disclosures or calculations, we act with integrity and
our Global Tax Principles. The Global Tax Principles apply of HR and custom duties to the Head of Group Supply recognise that taxation is a tool to help financing work with the relevant authorities to amend any errors
to all Grundfos entities1. Due to local requirements in Chain. All three positions are global functions to ensure achievements of the UN Sustainable Development made. As an example, in 2023 we worked with the
Poland, we additionally publish a fully-aligned local tax complete oversight of processes and procedures. Goals (SDGs). By adhering to our Global Tax Principles Chinese Authority to amend an error in our VAT export
strategy published on our Polish website. Our Group Tax department works with local finance and paying taxes responsibly in all jurisdictions where declaration. Following the identification, we performed
teams to ensure local tax compliance. Local level we operate, we are supporting SDG 8, ‘Promote a self-disclosure to correct the import price. Following

4. Business Ethics
Governance and compliance compliance is either carried out by the local Grundfos sustained, inclusive and sustainable economic growth, this, we have taken the relevant steps to improve and
The Global Tax Principles encapsulate our approach to team or outsourced to external partners. Group Tax is full and productive employment and decent work for mitigate the risk of this arising again in the future by
taxes. This is governed by the Board of Directors Audit responsible for ensuring an adherent application of the all’, as responsible tax behaviour can help increase gross installing the relevant processes to identify what to
Committee, who are responsible for reviewing and tax principles throughout the Group. domestic product (GDP) globally, and drive economies. do if a similar instance arises. The Chinese Custom
approving the principles. Ultimate accountability sits Group Tax provides training, workshops and guidance In addition, we do not operate in tax havens, Authority use our case as a good example of excellent
with the Chair of the Audit Committee. The frequency on tax for relevant employees such as financial based on the EU and OECD’s lists of non-cooperative collaboration and transparency between companies
of the review is done on an ad-hoc basis. compliance specialists, colleagues within our Finance tax jurisdictions. Russia was added to the EU list of and the Authority.
As a group, the operational accountability for Shared Service Centres, salespeople and business non-cooperative tax jurisdictions in February 2023,
management of taxes sits with the Chief Financial partners. however we already paused our business in Russia in

1
The global tax principles also meet the local specific requirement in the UK (disclosure obligation under Schedule 19 of FA16).

5. Assurance
71 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
Planning and use of tax incentives incentives are widely accessible, the use is comfortably principle, meaning the tax returns, for example, are always seek to provide the information required by

2. Environmental Impact
Changes in commercial business strategies and the within the intention of the law and the establishment reviewed by a colleague or an external service provider. the authorities to provide such guidance.
evolving regulatory environment inform decisions of businesses are not driven by these opportunities. Group Internal Audit Services conduct periodic audits of • Where possible, we will seek to meet with local
on how to structure our commercial arrangements. For a full list of the tax incentives utilised in 2023, see general financial compliance including taxes. tax authorities to enable them to understand our
Tax is one of the many factors involved in key Appendix 3 in our Responsible Tax Report 2023. Whenever there is complexity or uncertainty in business.
business planning activities. When evaluating the To highlight an example, we are making use of relation to tax risks, we may collaborate with external • When we are offered to enter into tax compliance or
tax implications of a business decision, the following the super deduction of R&D costs in Denmark. This professional advisors to ensure we get a second opinion co-operative compliance schemes, we will properly
criteria are considered: incentive supports our 2025 strategy, where innovation and remain compliant during the implementation of evaluate proposals on a case-by-case basis. Key
• Commercial purpose leadership is a must win battle: “Our main source new systems and new regulations. factors in the evaluation will include openness and
• Tax technical analysis of competitiveness is differentiation – and the very Significant identified risks must be reported to trustworthiness, estimated time consumption and
• Financial impact foundation for differentiation is innovation”. Grundfos Group Tax, who will report the most significant expected benefits.
• Any downside risks is actively engaged in advocating the super deduction. ones to the Group CFO and the board of Directors • We seek to reduce double taxation through
• Internal resource commitment Grundfos Serbia was granted a 10-year corporate Audit committee as part of the uncertain tax risk mechanisms such as engaging the competent

3. Social Impact
• Reputational impact income tax exemption as part of establishing a local provision, and at an aggregated level as part of the authorities in mutual agreement procedures or
production plant, and Grundfos Hungary was granted a overall Enterprise Risk Management reporting. At implementing advance pricing agreements.
Additionally, we have implemented the following 10-year development tax incentive (80% tax exemption) Grundfos we have a whistleblower system to allow the
fundamental principles to guide our navigation of this as part of establishing local production plants. This is discretionary reporting of suspected criminal acts or We engage in broader stakeholder engagement on
evolving regulatory environment: the explanation behind the low corporate income tax non-compliance with the Grundfos Code of Conduct by responsible tax behaviour in a variety of ways. We
1. No business decisions are made for the sole purpose payments listed in the country-by-country reporting2 employees, board members and third parties working participate around three times a year in the tax panel
of tax optimisation. for Hungary and Serbia. with Grundfos such as suppliers or consultants. The meetings of Danish Industry (DI), where our Head of
2. No arrangement will be implemented if the main reporting can be done in any language. Group Tax provides input and comments on new tax
purpose is to obtain a tax benefit that is not intended Tax risk management law proposals, such as drafts of new legislation which

4. Business Ethics
by the relevant tax rules. Our Group Tax Policy establishes our process for tax risk Relationship with tax authorities and stakeholders implements EU or OECD guidelines. We have provided
3. Payments are not routed through other entities in management. We proactively seek to identify, evaluate, Our tax obligations inevitably and appropriately involve comments to DI on the bill implementing Pillar Two
a back-to-back arrangement for the sole purpose of manage, and monitor tax risks to ensure they remain our engagement with tax authorities in the jurisdiction (a Danish implementation of the EU Minimum Tax
withholding tax. within the Group’s risk appetite. in which we operate. All such engagements are Directive).
4. No hybrid financing will be implemented with the Key risk areas are identified at Group level, undertaken in line with the following standards: We also participate in the ‘Tax Dialogue Project’
sole objective of obtaining a tax benefit. with controls and procedures being developed to • We have an open and transparent dialogue with tax held by Oxfam, where we engage with other private
manage them. Group Tax manages and reviews the authorities. businesses, pension funds and civil society to bring our
We will accept and utilise tax incentives, reliefs and most significant risk areas on an ongoing basis. All • Where possible, we will seek early guidance on tax and business insights to the table in the informal
similar to support local development where the compliance tasks are based on a four-eyes-review matters of complexity. Where we do this, we will discussions around responsible tax, tax legislation

2
See Responsible Taxes report 2023, which include the CBCR.

5. Assurance
72 \ GRUNDFOS SUSTAINABILITY REPORT 2023
BUSINESS ETHICS

1. Introduction
2. Environmental Impact
and practice. To date, the work has contributed finances via tax payments3 for the financial year Global cash tax payments FY 2023, DKK Global cash tax payments FY 2023, DKK
to greater tax transparency amongst target 2023 with the total amount of DKK 6.5 billion. Other 0.2bn (3%) Tax footprint Tax borne Tax collected
companies, pension funds and progress on tax We have split the total tax contribution into 4
Profit 3.0bn
transparency. This knowledge sharing helps different types of paid taxes: employee-related 1.5bn (23%) 3bn
Grundfos be heard on its tax agenda, as well as taxes, product/sales taxes, corporate income People
allowing us to gain valuable insights into good taxes and other taxes4. 3.0bn (46%) 2bn 1.8bn
1.5bn
tax practice so we can continue developing. The main tax contribution comes from
1bn
In 2023, we also joined a new member group employee-related taxes, which includes payroll Product
1.8bn (28%)
0.2bn
at CSR Europe to collaborate on the development taxes and social contributions, which constitute 0bn
People Product Profit Other
of an index to assess how companies, across all 46% of our total contribution.
sectors, perform in terms of tax transparency The effective tax rate for the Grundfos Group

3. Social Impact
and responsible tax behaviour. The project is in the Annual Report was 27% in 2023 and we
expected to be complete at the end of 2024 paid DKK 1.5bn in corporate income taxes, which The split between collected and borne taxes is 50% collected taxes and 50% borne taxes.
with the launch of the Tax Responsibility and is 32% of our consolidated profit before taxes. Taxes collected are taxes generated by the Grundfos operations (like payroll taxes and value
added taxes) and taxes borne are charged to the profit and loss account (e.g. corporate
Transparency Index. Please refer to the country-by-country reporting
income taxes, custom duties and employer social contributions).
for further information on corporate income tax
Global Tax Footprint which also includes a split of the total corporate
Grundfos has globally contributed to local public income tax per country.
Total cash tax contribution
FY 2023 in %, DKK

4. Business Ethics
6.5bn Tax borne
3.2bn
(50%)
Total tax contribution
FY 2023 in DKK.

Tax collected
3.2bn (50%)

3
Tax payments are payments by Grundfos to the Government, direct and indirect though an agent on an annual cash-paid basis.
4
Employee-related taxes is payroll taxes and social contributions and product/sales taxes is value added taxes and custom duties.

5. Assurance
73 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 1. Introduction
2. Environmental Impact
3. Social Impact
4. Business Ethics
Assurance
75 Accounting Principles
79 Management Statement
80 Assurance Report

5. Assurance
74 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ASSURANCE

1. Introduction
Accounting

2. Environmental Impact
Principles
At Grundfos, ensuring complete and accurate • Light fuel oil For these types of energy consumption and refrigerant service sector of the global economy. Subsidiaries that
sustainability data is of paramount importance to • Diesel in stationary units gases, we apply conversion factors published by the do not have detailed spending breakdowns are scaled
us. This principle enables us to remain proactive and • Renewable fuel UK’s Department for Business, Energy & Industrial by their spending value or cost of sales with respect to
allows all stakeholders to track our sustainability • Solar energy Strategy (BEIS) unless supplier-specific factors are Grundfos’ emission-to-spending/revenue intensity.
progress through quantitative information. The aim is • Consumed fuels in our global vehicle fleet and available locally. Our Scope 2 emissions are emitted

3. Social Impact
to further increase the completeness and accuracy of Grundfos jet through our usage of purchased electricity, electric Category 2 Capital goods
Grundfos’ ESG data within a single platform, continuing • Refrigerant gases vehicles, heat and steam. For market-based Scope 2 Capital goods include all upstream emissions associated
our journey towards reasonable assurance. All of emissions, we apply supplier-specific conversion factors with their production and that have been purchased
our Business Unit’s environmental and safety data is Grundfos discloses information (if it fulfils GHG Protocol quality requirements), residual within the reporting period. Capital goods are those
consolidated in Sphera Cloud, with the exception of on Scope 1, 2 and 3 emissions mix (Green-e, AIB) and location-based factors obtained that are treated as fixed assets or as property, plant
data sourced for CO2e from refrigerant and a few Scope Grundfos Group calculates and presents the Scope from the International Energy Agency (IEA), in this order and equipment. Goods expensed in the accounting
3 emission categories. Human resources related data 1, 2 and 3 emissions in CO2e in line with the GHG of availability. For location-based Scope 2 emissions, year (i.e. operating expenditure or “Opex”) should be
is collected in Employee Central. People reached with Protocol. For the basis of reporting we use manual we use the IEA and Environmental Protection Agency included in Category 1 instead. Emissions are calculated
drinking water access and Sourcing Sustainability Index meter readings, automated real-time consumption (EPA) for the United States. We refresh our factors on 1 based on the investment spending and multiplied by
KPIs are calculated in their own separate database. All monitoring systems and invoices from our utility January every year based on the latest available figures. the corresponding EEIO emissions factors. EEIO factors

4. Business Ethics
data is reported to relevant management bodies. suppliers as the source of information. Our Scope 1 are provided by Carbon Trust and adjusted for global
There are a few locations and small offices, with minor emissions arise from the usage of natural gas, light SCOPE 3 inflation, average global improvements in CO2e/GDP,
environmental impacts, which are excluded, but these fuel oil, diesel in our production activities and from Category 1a,b Purchased goods and services and switch to service sector of global economy.
are covered by estimations according to internal process the burning of fuels in our vehicles (compressed and (product and non-product)
descriptions. liquefied gas, petrol, diesel and jet fuel). Our Scope 1 Emissions are calculated based on the spending Category 3 Fuel and energy-related activities
emissions also include the effect of refrigerant gases. (excluded VAT) of each purchased goods and service The category includes the upstream emissions relating
CO2e emissions and energy consumption CO2e emissions from refrigerants are based on data category and multiplied by the corresponding to the production of fuels and electricity consumed
Our energy consumption stems from the use of: collection (total amount of refrigerants in the system) Environmentally-Extended Input-Output (EEIO) by Grundfos. Emissions are calculated based on the
• Electricity and extrapolation based on square metres considering emissions factors. EEIO factors are provided by the energy consumption of various energy sources as stated
• Heat and steam offices and production areas separately. Based on LEED Carbon Trust and adjusted for global inflation, average in Scope 1 and 2 and multiplied by the corresponding
• Natural gas V4.0 we calculated a total refrigerant leakage of 3%. global improvements in CO2e/GDP, and switch to the latest available indirect factors in Sphera Managed LCA

5. Assurance
75 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ASSURANCE

1. Introduction
Content (MLC – formerly GaBi), except energy from from hotels. Emissions are calculated by our external Category 12 End-of-life treatment of sold products we have established a KPI specifically measuring the
liquified gas and jet fuel where the source of factors partner. For the rest, we calculate emissions based on Category 12 refers to emissions from the waste disposal total weight of our waste disposed of in landfills,
is BEIS (DEFRA) library. Emission from renewable fuel the spending in each category, multiplying them by the and treatment of the products sold at their end of life excluding construction waste. The waste components

2. Environmental Impact
consumption is reported in scope1 category. corresponding emissions factors from the BEIS (DEFRA). (EoL) and based on the analysis report from STENA on in this indicator are categorised as hazardous and non-
Subsidiaries that are not included in the calculation are nine of the key products in Grundfos. Emissions are hazardous waste. Data is collected on a monthly basis,
Category 4 Upstream transportation and distribution scaled by the spending/revenue value following the calculated based on the total weight of all Grundfos’ based on invoices and assumptions based on in-house
Upstream transportation and distribution include emission-to-spending/revenue intensity of Grundfos. sold product. For each product family we assigned a measurements.
emissions from goods transportation for Grundfos proxy based on the nine key products by characteristic
globally. CO2e is measured on a Well to Wheel (WTW) Category 7 Employee commuting resemblances. Material weight and its assumed waste Resource recovery through take back
basis according to international standards. Data is The employee commuting category refers to all handling method are established and multiplied by Resource recovery from take back is the total amount
derived from a combination of transport supplier emissions arising from the transportation of employees the BEIS (DEFRA) emissions factors. Subsidiaries that of end-of-life pumps in kg, including field returns,
reports, 3rd party companies maintaining the transport between their homes and worksites. These may include are not included in the calculations are scaled by the retrieved to Grundfos, through a reversed supply chain
and data from the Grundfos ERP system with one emissions from automobile, bus and rail travel as revenue value following the emission-to-revenue with the aim of finding the best environmental use for
month delay. Subsidiaries that are not included in the well as other modes. Emissions are calculated on a intensity of Grundfos. them, their components, and materials. The end-of-life
calculations are scaled by the spending/revenue value country level, based on the number of employees and Category 8 Upstream leased assets, 9 Downstream pumps, including field returns, are accounted for when

3. Social Impact
following the emission-to-spending/revenue intensity multiplied by emissions factors. Emissions factors transportation and distribution, 10 Processing of sold they arrive at the designated disassembly facilities
of Grundfos. from the BEIS (DEFRA) are adjusted based on the products, 13 Downstream leased assets, 14 Franchises, and are ready for treatment. The pumps are collected
categorisation of a country’s income and level of 15 Investments were excluded on the basis that there in Denmark, Netherlands, the United Kingdom, Italy,
Category 5 Waste generated in operations public transportation service. were no emissions identified to be included in these Germany, France, and Sweden before being sent
Category 5 includes all emissions from the third categories following Grundfos Group operation. to Grundfos’s disassembly facilities in Bjerringbro,
party disposal and treatment of waste generated by Category 11 Use of sold products (direct) Denmark, or Sunderland, United Kingdom.
Grundfos’ owned or controlled operations. Emissions The category refers to the use-phase emissions from Water withdrawal
are calculated based on the collected waste categories the electricity consumption of the use of products Grundfos’ global water withdrawal consists of two Number of employees
and multiplied by the corresponding emissions sold by Grundfos to end users during their lifetime. major sources: The number of employees with a valid permanent
factors from BEIS (DEFRA)library. Non-hazardous and Lifetime is estimated to be 10 years for all products • Municipal water source or temporary Grundfos contract, excluding employees

4. Business Ethics
hazardous waste disposed at landfill are collected based on industrial association alignment, EuroPump. • Groundwater from our own wells on leave. The number is measured as headcount at
monthly, all other categories are collected quarterly. Emissions are calculated based on the energy year-end.
Emission for construction waste is calculated based consumption per product number, multiplied by For the basis of reporting we apply manual meter
on estimated material composition and with the lifetime operation hours (based on product type); sold readings, automated real-time consumption Women board of directors
corresponding factors in BEIS (DEFRA). quantity of the product and emissions factors of the monitoring systems and invoices from our water The percentage of women in the Board of Directors is
sold country from the IEA. Emissions factors are IEA suppliers as the source of information. calculated by dividing the number of women Non-
Category 6 Business travel location-based data with a 10 year forecast adjustment. Executive Directors elected by the Assembly General to
For all Grundfos companies that use the Group Subsidiaries that are not included in the calculation are Waste to landfill the Board of Directors (i.e. excluding employee-elected
business travel service, we calculate emissions from scaled by the revenue value following the emission- In Grundfos we strive to recycle waste as much as members of the Board of Directors) by the total number
air travel based on the flight distance and airline, from to-revenue intensity of the corresponding Grundfos possible and dispose as little in landfills as we can from of Non-Executive Directors elected by the Assembly
other forms of transportation (taxi, car rental) and business unit. both production and non-production sites. Therefore General in the reporting year multiplied by 100.

5. Assurance
76 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ASSURANCE

1. Introduction
The number of women Non-Executive Directors elected Lost time injury ratio (LTI ratio) WaterWorks, Eurowater, Grundfos Istra, Grundfos OOO, Peerless Pump Company, Solvermedia B.V., Sintex a/s,
by the Assembly General to the Board of Directors was LTI ratio is the number of injuries that have led to therefore it covers 85% of the total headcount. Deutsche Vortex GmbH & Co, Water Mill, Mechanical
one by the end of 2023. The total number of Board of lost working hours in all areas of Grundfos, including Equipment Company, Metasphere, WaterWorks,

2. Environmental Impact
Directors members was five. office, sales, production, and warehouse expressed as Stress level Eurowater, Grundfos Istra, Grundfos OOO, therefore it
percentage of the total hours worked by the employees. The number shows the percentage of in-scope covers 85% of the total headcount.
Women leaders ratio Lost time injuries are injuries that have prevented an employees who answer quite or very much (from the 5
Leaders are Grundfos employees in band levels 1-9 employee from being able to return to work the day possibilities: not at all, only a little, some, quite much, Total voluntary turnover
based on the year-end headcount, including employees after the injury. All LTIs are registered per occurrence very much) to the question related to stress in the Defined as the number of all voluntary leavers during
on leave. Band levels are defined by Grundfos’ date. Status is made per 31 January for the previous Employee Motivation Survey. a 12-month rolling period compared with the ending
internal career level structure. Leaders have people fiscal year. If a case turns into an LTI later than this Employees in scope for the survey are: all employees headcount, including employees on leave, expressed
responsibility, i.e. they have employee(s) reporting date, e.g. due to surgery linked to the specific case, with minimum 3 months of employment on the as a percentage. The following companies are not
directly to them. Women leaders ratio represents the that will be accounted for the next fiscal year. The date where the data collection starts. This includes included in the KPI: Biral, DWT Holding S.p.A., Poul Due
number of women in leadership positions divided by indicator is indexed as the number of lost time injuries apprentices, craftsmanship (full time employment); Jensens Fond, Peerless Pump Company, Solvermedia
the total number of leadership positions multiplied by per the total hours worked by all Grundfos employees office trainees (full time employment); employees on B.V., Sintex a/s, Deutsche Vortex GmbH & Co, Water
100. The following companies are not included in the multiplied by one million. part time (e.g. in flex job); global graduates; employees Mill, Mechanical Equipment Company, Metasphere,

3. Social Impact
KPI: Biral, DWT Holding S.p.A., Poul Due Jensens Fond, on gradual return/part-time sick leave; employees on WaterWorks, Eurowater, Grundfos Istra, Grundfos OOO,
Peerless Pump Company, Solvermedia B.V., Sintex a/s, Employee motivation and satisfaction short term leave (sick, maternity/paternity, parental therefore it covers 85% of the total headcount.
Deutsche Vortex GmbH & Co, Water Mill, Mechanical The level of employee motivation and satisfaction etc.), that is no longer than 12 weeks by the start of
Equipment Company, Metasphere, WaterWorks, score among employees, measured through a weighted the survey collection. The following companies are not People reached with drinking
Eurowater, Grundfos Istra, Grundfos OOO, therefore it average of underlying questions on the Employee included in the presented number: Biral, DWT Holding water access
covers 85% of the total headcount. Motivation Survey. The KPI is measured in a scale of S.p.A., Poul Due Jensens Fond, Peerless Pump Company, People reached from registered projects is based on
0-100 based on four questions. Solvermedia B.V., Sintex a/s, Deutsche Vortex GmbH data collected from partners of Grundfos (primarily
People with disabilities Employees in scope for the survey are: all employees & Co, Water Mill, Mechanical Equipment Company, non-profit and humanitarian organisations and
From 2023 the name of the KPI has changed to reflect with minimum 3 months of employment on the Metasphere, WaterWorks, Eurowater, Grundfos Istra, utilities) that install Grundfos water solutions for
our aspiration to consider all people in our organisation date where the data collection starts. This includes Grundfos OOO, therefore it covers 85% of the total underserved communities. Grundfos products are sold

4. Business Ethics
with disabilities. This indicator is measured as a apprentices, craftsmanship (full time employment); headcount. either directly to the partner executing the project, or
percentage of employees with disabilities relative to office trainees (full time employment); employees on indirectly via a distributor; in either case the executing
the total headcount at year-end, including employees part time (e.g. in flex job); global graduates; employees Early career voluntary turnover (ECD) partner reports on the project(s), which is linked to the
on leave. We define a person with disability as a person on gradual return/part-time sick leave; employees on Defined as the number of all voluntary ECD leavers corresponding sales order(s). Partners are requested to
who has a long-term physical, mental, cognitive, sensory short term leave (sick, maternity/paternity, parental during a 12-month rolling period compared with the report annually on installed drinking water solutions;
impairment, or a chronic disease, which in interaction etc.), that is no longer than 12 weeks by the start of ending ECD headcount, including employees on leave, including the product types and the number of products,
with various barriers may hinder their full and effective the survey collection. The following companies are not expressed as a percentage. ECD employees are defined as the number of people served with water by these
participation in the workplace on an equal basis with included in the KPI: Biral, DWT Holding S.p.A., Poul Due those who are less than or equal to 35 years of age, and solutions, and their geographical location. Data is
others. The definition is in accordance with the UN and Jensens Fond, Peerless Pump Company, Solvermedia have less than 5 years of seniority on the termination provided based on project design specifications or usage
WHO definition. People are registered with no official B.V., Sintex a/s, Deutsche Vortex GmbH & Co, Water date. The following companies are not included in the data, and validated by SafeWater against official national
documentation as well as people with documentation. Mill, Mechanical Equipment Company, Metasphere, KPI: Biral, DWT Holding S.p.A., Poul Due Jensens Fond, census data on population location. If there are multiple

5. Assurance
77 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ASSURANCE

1. Introduction
projects in one area, these projects are accumulated • Water footprint spend coverage (10%): spend of Restatement of scope 1, scope 2 emissions We have recalculated our historical data from 2020 to
and checked against the population living in the same suppliers who completed our data sharing request In order to remain consistent and to avoid adjustments 2022 based on the new methodology.
area. Only pumps installed and people reached in the within the total purchasing spend – considering having to be made to emission figures that have already

2. Environmental Impact
relevant calendar year are counted, as reported by the spending from last closed year. been reported internally, Grundfos fixes emission Restatement of scope 3
customer. Reported number of people reached per factors in the actual reporting year. Emissions from capital goods (category 2) has been
project is not checked against pump capacity, since Compliance (Weight 10%): Up to 2022 the emissions were recalculated based on restated for 2022 due to a calculation error. Calculation
water consumption patterns are not known. • Chemical Compliance data coverage (7%): number the latest available emission factors during the fourth methodology has not been changed.
of accepted data collected within the defined quarter of the reporting year backwards for the already Emissions from use of sold products (category 11)
Sourcing Sustainability Index scope compared to the year-end target. Every bill of reported months within the fiscal year (until January in has been restated for 2022 as we have improved the
The Advanced Sourcing Sustainability KPI is a material supplier is in the scope of data collection, the actual year). From 2023 we refresh our factors on 1 calculation to include DWT Holding S.p.A. as bottom-up
comprehensive supplier sustainability performance prioritisation is conducted as per a risk-based January based on the latest available figures, thus data calculation instead of uplifting.
measurement approach, that relies on 6 indicators approach. within the year is not recalculated.
related to CSR, Environmental footprint reduction • Conflict Minerals Declaration coverage (3%):
and Compliance. The indicators have different completed data sharing request within the defined
weights based on the strategic importance and scope. Every bill of the material supplier within the

3. Social Impact
the data collection maturity of the area. The Global concerned categories is in the scope of the data Restatement of Science Based Targets initiative baseline 2020
Sourcing Sustainability Process Manager defines collection, and prioritisation is conducted as per
Original submitted in 2022 Rebaseline in 2023
yearly KPI targets which are aligned with the Sourcing comprehensive risk-based selection criteria.
Sustainability Team and relevant stakeholders from
t CO₂e 133,608,707 119,720,887
other departments. The targets must be approved by These six indicators give one consolidated index based
the Group Purchasing Leadership Team. The indicators on the weighted average, known as the Sourcing Scope 1 t CO₂e 24,839 28,853
measure the following: Sustainability Index. This index has been incentivised
Scope 2 t CO₂e 59,966 90,017
within Group Purchasing to ensure focused attention
CSR (Weight 60%) on suppliers’ performance improvement. Scope 3 t CO₂e 133,523,902 119,602,016
• EcoVadis onboarding (30%): number of suppliers

4. Business Ethics
with EcoVadis assessment result, compared to the * compliant suppliers: meeting Grundfos’ minimum SBTi has approved Grundfos Net Zero target using 2020 as baseline year available factors. Emissions of M&A since 2020 (Eurowater, Mechanical
year-end target. requirement (online assessment score is 45 or higher, in November 2022. Grundfos has subsequently improved data quality Equipment Company, Waterworks) are now also included.

• Overall CSR compliance rate (30%): number of on-site audit rating is “B” or “A”). and methodology to improve accuracy and transparency with changes as
listed below. Scope 3: Use of Sold Product baseline value was calculated at product
compliant suppliers* within the total number of
number level, energy consumption multiplied with regional level emission
audited and assessed suppliers. Restatement Scope1: Emissions calculated from the use of refrigerants, and effect of factors. Grundfos has improved the methodology to calculate the product
In order to maintain consistency and remain able to M&A since 2020 (Eurowater, Mechanical Equipment Company, Water- level emission based on each individual sold unit delivered to country,
Environmental footprint (Weight 30%): compare the same category of datasets, in certain cases works) are now included. using emission factors at country level. New baseline also includes the
• Carbon footprint spend coverage (20%): spend of the baseline of our KPIs, targets and/or historic figures effect of emission from capital goods (category 2) restatement and the

suppliers who completed our data sharing request are recalculated or restated based on the company Scope 2: In order to be consistent with our reporting throughout the effect of M&A since 2020 (Eurowater, Mechanical Equipment Company,
year, we update our CO2e emissions each year only on 1 January with the Waterworks). Grundfos submitted SBTi re-baseline in Feb 2024.
within the total purchasing spend – considering restatement and re-baseline policy.
latest available factors. Previously, factors were updated in Q3 with latest
spending from last closed year.

5. Assurance
78 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ASSURANCE

1. Introduction
Management’s

2. Environmental Impact
Statement
Statement by the Executive Board and the Board of Directors
Registered Group Management
We have today submitted the Sustainability Report for the period 1 January
to 31 December 2023 for Grundfos Holding A/S.
Poul Due Mikael Andreas Jens Ulrik
Jensen Holm Geday Gernow
We consider that the report provides a true and fair view of Grundfos Holding Group President, Group Executive Vice President, Group Executive Vice President,
A/S’ impact on society for the period 1 January to 31 December 2023. CEO CFO COO

3. Social Impact
In addition, it is our opinion that the information in the report is consistent
with the applied accounting principles. Sustainability Report 2023 is
recommended to be adopted on the general meeting.

Board of Directors
Bjerringbro, 26 February 2024
Jens Winther Moberg Carsten Joachim Reinhardt Henrik Ehlers Wulff
Chair Vice Chair Member of the Board

4. Business Ethics
Jacoba Theresia Maria Claus Aagaard Kitty Thaarup
van der Meijs Member of the Board Herholdt
Member of the Board Member of the Board,
elected by employees

Rudolf Martini John Bjerregaard

Member of the Board, Jacobsen
elected by employees Member of the Board,
elected by employees

5. Assurance
79 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ASSURANCE

1. Introduction
Assurance
Report

2. Environmental Impact
Independent auditor’s Assurance Report
on Grundfos Holding A/S’ Sustainability Report

To the stakeholders of Grundfos Holding A/S selected ESG KPIs allows for different, but acceptable, We conducted our examinations in accordance ‘Sustainability Performance Overview’ on page 20-21,
As agreed, we have performed an examination with measurement techniques and can affect comparability with ISAE 3000 Assurance Engagements Other than our objective was to perform such procedures and to
a combined reasonable and limited assurance, as between entities and over time. Audits or Reviews of Historical Financial Information obtain such evidence which we consider necessary in
defined by the International Standards on Assurance Other than as described in the preceding paragraph, and additional requirements under Danish audit order to provide us with sufficient appropriate evidence

3. Social Impact
Engagements, on Grundfos Holding A/S (Grundfos) which sets out the scope of our engagement, we did regulations to obtain assurance for the purposes of to express an opinion with reasonable assurance.
selected ESG KPIs in the table ‘Sustainability Data not perform assurance procedures on the remaining our conclusion. In obtaining limited assurance over the selected
Overview’ on page 20-21 in for the period from 1 information included in the Sustainability Report, EY Godkendt Revisionspartnerselskab applies ESG KPIs tagged with “Limited Assurance" in
January 2023 to 31 December 2023. and accordingly, we do not express an opinion on this International Standard on Quality Management 1, ‘Sustainability Performance Overview’ on page 20-
information. ISQM1, which requires the firm to design, implement 21 our objective was to perform such procedures
Specifically, we are to conclude on: and operate a system of quality management including as to obtain information and explanations which
• reasonable assurance over the selected ESG KPIs Management’s responsibilities policies or procedures regarding compliance with we consider necessary in order to provide us with
tagged with “Reasonable Assurance” identified Grundfos's Management is responsible for selecting ethical requirements, professional standards and sufficient appropriate evidence to express a conclusion
in ‘Sustainability Performance Overview’ on page the accounting principles and for presenting the applicable legal and regulatory requirements. with limited assurance. The procedures performed in
20-21. selected ESG KPIs in accordance with the accounting We have complied with the independence and connection with our limited assurance engagement

4. Business Ethics
• limited assurance over the selected ESG KPIs tagged principles, in all material respects. This responsibility other ethical requirements of the International Ethics are less than those performed in connection with a
with “Limited Assurance” identified in ‘Sustainability includes establishing and maintaining internal controls, Standards Board for Accountants’ International Code reasonable assurance engagement. Consequently, the
Performance Overview’ on page 20-21. maintaining adequate records, and making estimates of Ethics for Professional Accountants (IESBA Code), degree of assurance for our conclusion is substantially
that are relevant to the preparation of the selected ESG which is founded on fundamental principles of less than the assurance which would be obtained had
In preparing the selected ESG KPIs, Grundfos applied KPIs, such that it is free from material misstatement, integrity, objectivity, professional competence and due we performed a reasonable assurance engagement.
the accounting principles described on pages 75- whether due to fraud or error. care, confidentiality and professional behaviour as well As part of our examination, we performed the below
78. The selected ESG KPIs needs to be read and as ethical requirements applicable in Denmark. procedures:
understood together with the accounting principles, Auditor’s responsibilities • Interviewed those in charge of selected ESG KPIs
which management is solely responsible for selecting Our responsibility is to express a conclusion based on Description of procedures performed to develop an understanding of the process for the
and applying. The absence of an established practice our examinations on the presentation of the selected In obtaining reasonable assurance over the selected preparation of the selected ESG KPIs and for carrying
on which to derive, evaluate, and measure the ESG KPIs in accordance with the scope defined above. ESG KPIs tagged with “Reasonable Assurance” in out internal control procedures.

5. Assurance
80 \ GRUNDFOS SUSTAINABILITY REPORT 2023
ASSURANCE

1. Introduction
2. Environmental Impact
• Performed an analytical review of the data and In our opinion, the examinations performed provide
trends to identify areas of the selected ESG KPIs a sufficient basis for our conclusion.
with a significant risk of misleading or unbalanced
information or material misstatements and obtained Conclusion
an understanding of any explanations provided for In our opinion the Sustainability information for
significant variances. selected ESG KPIs tagged with “Reasonable Assurance”
• Based on enquiries we evaluated the appropriateness in ‘Sustainability Performance Overview’ on page 20-21
of accounting principles used, their consistent in Grundfos' Sustainability Report for the period from
application and related disclosures in the selected ESG 1 January 2023 to 31 December 2023 which has been
KPIs. This includes the reasonableness of estimates subject to our reasonable assurance procedures have, in
made by management. all material respects, been prepared in accordance with
• Designed and performed further procedures the accounting principles on pages 75-78.

3. Social Impact
responsive to those risks and obtained evidence that Based on the limited assurance examinations and the
is sufficient and appropriate to provide a basis for our evidence obtained, nothing has come to our attention
conclusion. that causes us to believe that the selected ESG KPIs
• In connection with our procedures, we read the tagged with “Limited Assurance” in Grundfos' selected
other sustainability information in the Grundfos ESG KPIs for the period 1 January 2023 to 31 December
Sustainability Report and, in doing so, considered 2023, have not been prepared, in all material respects, in
whether the other sustainability information is accordance with the accounting principles described on
materially inconsistent with the selected ESG KPIs or pages 75-78.
our knowledge obtained in the review or otherwise
appear to be materially misstated. Copenhagen, 26 February 2024

4. Business Ethics
In addition to the above we performed the following EY Godkendt Revisionspartnerselskab
procedures for the selected ESG KPIs subject to CVR no. 30 70 02 28
reasonable assurance:
• Agreed key items and representative samples based on
generally accepted sampling methodology to source
information to check accuracy and completeness of
the data. Henrik Kronborg Iversen Esben Hansen
• Site visits to conduct walkthroughs of data gathering, Partner, State Authorised Partner
calculation and consolidation processes related to Public Accountant Climate Change and
the reasonable assurance of metrics. mne24687 Sustainability Services

5. Assurance
81 \ GRUNDFOS SUSTAINABILITY REPORT 2023
 © Grundfos Holding A/S 02.2024
GRUNDFOS Holding A/S
Poul Due Jensens Vej 7
DK-8850 Bjerringbro
Tel: +45 87 50 14 00
www.grundfos.com
82 \ GRUNDFOS SUSTAINABILITY REPORT 2023