Measuring progress

Atlas Copco’s vision is to be First in Mind–First in Choice for all our stakeholders. This can only be achieved by safeguarding people, profit and planet. The goals we set support our mission: sustainable, profitable growth. We have defined goals in six focus areas: profitability, people, ethics, product and services, environment, and safety and well-being.

For five of these areas – people, ethics, products and service, environment, and safety and well-being – there are new goals for 2019-21 and 2030. The operational entities and divisions are responsible for incorporating the goals into their three-year plans and following up on results and progress towards reaching the Group goals.

Sustainable profitable growth - people, planet, profit

The goals are developed with the input of representatives of all business functions and all business areas through a series of workshops and follow-up meetings with business area management teams before being approved by the Executive Management. Results, best practices and success stories are reported on a continuous basis internally.  Progress in relation to the sustainability targets is part of the variable compensation for the Executive Management as well as other employees.  

See the Annual Report for more information about our Group goals and results for the previous year.

Focus areas for sustainable growth

Focus area

Vision

Financial goals

Profitability

Our growth is sustainable and profitable
  • Revenue growth measured over a business cycle. Target: 8% per annum. Growth should primarily be organic, supported by selective acquisitions.
  • Sustained high return on capital employed by constantly striving for operational excellence and generating growth.
  • Earnings as dividends to shareholders. Target: about 50%.
   

Non-financial goals

People

Our culture of collaboration and inclusion drives our success
  • The degree to which Atlas Copco employees agree there is opportunity to learn and grow should be above the global benchmark and continuously increase.
  • The degree to which Atlas Copco employees agree we have a work culture of respect, fairness and openness should be above the global benchmark and continuously increase.
  • Atlas Copco should have 30% female employees at year end 2030.

Ethics

We are known for ethical behavior, openness and respect
  • All employees sign the Business Code of Practice.
  • All employees are trained in the Business Code of Practice.
  • All managers in risk countries lead trainings in the Business Code of Practice.
  • All significant suppliers sign the Business Code of Practice.
  • All significant distributors sign the Business Code of Practice.

Products & Service

Our products create lasting value and make a positive impact
  • All projects for new or redesigned products have clear and specific targets for reduced environmental impact by 2021.
  • Projects for new and redesigned products achieve significantly reduced environmental impact. Target to be defined.

Safety & Well-being

The way we work contributes to our safety and well-being

  • The degree to which Atlas Copco employees agree that the company takes a genuine interest in their well-being should continuously increase.
  • Atlas Copco should have a balanced safety pyramid, meaning that more near misses than minor injuries, and more minor injuries than recordable injuries are reported.

The Environment

Our processes minimize our impact on the environment
  • CO2 emissions from energy in operations and transport of goods in relation to cost of sales should be reduced with 50% by 2030.
  • Continuous reduction of waste in relation to cost of sales.
  • Continuous reduction of water consumption in relation to cost of sales.
  • Continuous increase of significant direct suppliers with an approved environment management system.

How we deliver lasting value

Our industrial ideas empower our customers to grow and drive society forward. This is how we create a better tomorrow.

Focus area

 Goal

Target

2019

2018

People 

The degree to which Atlas Copco employees agree there is opportunity to learn and
grow should be higher than global benchmark and continuously increase 
Above global benchmark; continuous increase 71 n/a
The degree to which Atlas Copco employees agree we have a work culture of respect, fairness and openness should be higher than global benchmark and continuously increase  Above global benchmark; continuous increase 74 n/a
Share of female employees (year end)  30% by 2030 19.8% 19.1%

Ethics 

Employees sign the Business Code of Practice  100% annually 98% n/a
Employees are trained in the Business Code of Practice  100% annually  94% n/a
Managers in risk countries lead trainings in the Business Code of Practice  100% annually 91% n/a
Significant suppliers sign the Business Code of Practice  100% annually 90% 86%
Significant distributors sign the Business Code of Practice  100% annually 59% n/a

Products & Service

Projects for new or redesigned products with targets for reduced environmental impact by 2021  100% by 2021 n/a n/a
Projects for new or redesigned products have achieved significantly reduced
environmental impact 
Each division sets a target n/a n/a

Safety & well-being 

The degree to which Atlas Copco employees agree that the company takes
a genuine interest in employees’ well-being should continuously increase 
Continuous increase 69 n/a
Balanced safety pyramid, meaning that more near misses than minor injuries,
and more minor injuries than recordable injuries are reported 
Near miss > minor injury. Minor injury > recordable injury yes n/a

The Environment 

CO2 emissions from energy in operations and transport (tonnes) in
relation to cost of sales. Base year: 2018 
50% by 2030 4.3 (-19%) 5.3
Waste (kg) in relation to cost of sales  Continuous reduction 597 667
Water consumption (m3) in relation to cost of sales  Continuous reduction 7.2 (-17%) 8.7
Significant direct suppliers with an approved environment management system Continuous increase 28% n/a