The AVK Group Sustainability Report 2023/2024

During the past year, the global economy has faced several challenges that have significantly impacted our business. Geopolitical tensions increased uncertainty and disrupted global supply chains, while persistent inflation in many countries has driven up raw materials and energy costs. Changes in interest rates have reduced investments, and regulatory shifts have affected our operations. Additionally, extreme climate events and a growing demand for sustainable practices have further complicated the landscape.

In response, we are investing in local production and supply chains to maintain a strong presence in key markets. Despite these challenges, we have achieved satisfactory results this year, focusing on long-term, sustainable investments that benefit our company, employees, customers, and the environment.

Founded in 1941, AVK is built on the core values: quality, innovation, reliability, sustainability, and customer service. Thus, sustainable development is a cornerstone of our business strategy.

In October 2023, Niels Aage Kjær stepped down as CEO of the AVK Group after 53 years, passing the leadership to the new Executive Directors. At the same time, a Group Executive Board was established, with the overall responsibility for the Group. Here the Chairman of the three business units along with AVK Holding directors and the Executive Directors are represented. Niels Aage Kjær has assumed the role as Chairman of the Board, ensuring our continued commitment to sustainable development.

Also in October 2023, we made our largest acquisition to date, welcoming over 500 new colleagues from the companies Bayard and Belgicast into the AVK Group.

AVK’s purpose is to develop, produce, and market high-quality, long-lasting products essential for vital infrastructure, including water supply, wastewater management, and energy supply, as well as various industrial applications. These efforts contribute to a sustainable development, public health, and a better environment.

AVK operates globally through three business units: AVK Water, AVK Industrial, and AVK Advanced Manufacturing. Our companies provide diverse solutions, including innovative products like PolyAl, made from recycled drinking cartons, which we incorporate into our plastic pallets. This report highlights how our products support sustainable development across multiple sectors.

We are committed to optimising processes and reducing our environmental impact. Significant investments in automation across our manufacturing units have enhanced quality and productivity as well as work processes. This year, we were honoured with the DIRA Automation Award 2024, recognising our long-term commitment to advanced automation.

In the 2023/24 financial year, we have initiated a strategic implementation of the EU Corporate Sustainability Reporting Directive (CSRD). As part of the process, AVK has initiated a double materiality assessment. The purpose of the double materiality assessment is to identify and prioritise our most significant impacts, risks, and opportunities and highlight materiality topics and areas we need to focus on.

We are focused on environmental efforts, having obtained several Environmental Product Declarations (EPDs) that calculate CO₂e emissions throughout our value chain for a given product, during the last year. We aim to minimise energy consumption while increasing our use of green energy sources through investments in solar panels and low-energy solutions, and we are phasing out fossil fuel-powered passenger cars. In addition, we focus on waste management and the use of recycled materials in the production of high-quality products.

With operations in various countries, our diverse workforce is a strength that enhances our local and global development. We embrace this diversity, fostering a dynamic and enriching work environment. AVK is committed to being a healthy, professionally challenging, and safe workplace, actively working to reduce work-related accidents.

AVK operates in several business areas that are pivotal to driving sustainable development worldwide. In recent years, there has been an increasing focus on the management of drinking water and wastewater, which has an enormous impact on health and quality of life, as well as energy consumption and climate.

This past year, AVK has demonstrated resilience and a strong commitment to sustainability amid challenges. Our leadership transition and recent acquisition position us for future growth, enhancing our capabilities and market presence.

We remain dedicated to our core values, ensuring our products benefit both customers and the environment. By fostering a diverse and safe workplace, we empower our employees to drive innovation.

As we look ahead, we are excited about the opportunities to continue leading in sustainability and excellence. Thank you for your support as we move forward together.

Søren Kjær, Lars Kudsk and Bo Johansen, Executive Directors, AVK Holding