G001
Customer price sensitivity amid economic uncertainty may hinder premium technology adoption
Stakeholder coverage map
Industrial customers
Strategic priorities
- Revenue growth 5-7%
- Market leadership (#1/#2 positions)
- Technology leadership
Investments
- R&D €1.0-1.2B annually
- Advanced technology solutions
- Digital/automation technologies
Target outcomes
- Financial performance targets
- Sustainability impact metrics
Sustainability links
- E Customer emissions avoidance several hundred megatons CO2e 2022-2030
Coverage notesCritical for growth targets and sustainability impact delivery
Investors and financial markets
Strategic priorities
- EBITA margin 16-20%
- >20% ROCE
- Acquisition strategy
Investments
- 3-5 bolt-on acquisitions annually
- €500M-1B share buybacks
- R&D €1.0-1.2B annually
Target outcomes
- Financial returns
- Portfolio transformation
Sustainability links
- G Executive compensation 20% sustainability weighting
Coverage notesEssential for funding ambitious capital allocation strategy
Technology talent and workforce
Strategic priorities
- Technology leadership
- Digital transformation
- R&D leadership
Investments
- AI projects 250+
- 40%+ R&D workforce on software/digital
- Employee development
Target outcomes
- Strategic execution capability
- Innovation pipeline
Sustainability links
- S Gender diversity 30% women in senior management by 2030
Coverage notesCritical bottleneck risk for strategy execution
Acquisition targets and partners
Strategic priorities
- Growth through targeted acquisitions
- Technology leadership
- Portfolio optimization
Investments
- 3-5 acquisitions annually
- Strategic acquisitions for capability expansion
Target outcomes
- Portfolio expansion
- Enhanced market position through acquisitions
Sustainability links
- G Culture of integrity across value chain
Coverage notesCentral to achieving ambitious growth through acquisitions
Regulatory authorities and policymakers
Strategic priorities
- Regional manufacturing model
- Geopolitical risk management
Investments
- Local manufacturing investments
Target outcomes
- Market access preservation
- Operational flexibility
Sustainability links
- E Climate targets alignment with regulatory frameworks
Coverage notesEssential for managing trade policies and regulatory environment
Supply chain partners
Strategic priorities
- Sustainability leadership
- ESG excellence
Investments
- SSP implementation
- Human rights due diligence systems
Target outcomes
- 70% supply spending SSP coverage by 2030
Sustainability links
- S Human rights due diligence across value chain
Coverage notesCritical for achieving 2030 sustainability targets
Board members and governance stakeholders
Strategic priorities
- Culture of integrity
- ESG leadership
Investments
- Governance frameworks
- Risk management systems
Target outcomes
- Maintained ESG ratings
- Effective risk oversight
Sustainability links
- G 40% women board members, sustainability-linked compensation
Coverage notesOversight body for sustainability targets and integrity programs
Third party business partners
Strategic priorities
- Zero tolerance for corruption
- Culture of integrity
Investments
- Global due diligence framework
- Anti-corruption programs
Target outcomes
- Risk-based due diligence by 2030
- Enhanced compliance
Sustainability links
- G Global risk-based due diligence framework by 2030
Coverage notesEssential for maintaining integrity across value chain
Objectives assessment
Industrial customers
Communications objectiveDemonstrate clear ROI and competitive advantage from the company's technology leadership, particularly in sustainability outcomes and operational efficiency gains.
Supports prioritiesTechnology leadership, Revenue growth, Market leadership
Gaps / tensionsLacks specificity on how to overcome customer price sensitivity amid economic uncertainty and how to accelerate adoption of premium digital solutions
Recommended emphasisQuantified sustainability ROI case studies and operational efficiency proof points
Investors and financial markets
Communications objectiveBuild confidence in the company's ability to deliver superior financial returns while executing complex portfolio transformation and maintaining technology leadership.
Supports prioritiesFinancial targets, Acquisition strategy, Technology leadership
Gaps / tensionsDoes not address investor skepticism about sustainability investment ROI or provide clear metrics for acquisition integration success
Recommended emphasisConcrete acquisition integration track record and sustainability-linked financial performance
Technology talent and workforce
Communications objectivePosition the company as a leading technology company offering compelling career opportunities in sustainability and digital innovation while reinforcing commitment to employee development, safety, and diversity initiatives.
Supports prioritiesTechnology leadership, Digital transformation
Gaps / tensionsAddresses positioning but lacks specificity on retention strategies for critical talent bottleneck risk; diversity targets (25% women by 2030) may be insufficient to attract top talent in competitive market
Recommended emphasisSpecific career development pathways in AI/digital and concrete diversity acceleration plans
Acquisition targets and partners
Communications objectiveEstablish the company as the preferred strategic acquirer by demonstrating successful integration track record, respect for entrepreneurial culture, and ability to accelerate growth through global market access.
Supports prioritiesGrowth through targeted acquisitions, Portfolio optimization
Gaps / tensionsExecution challenge in proving cultural alignment claims without specific case studies; risk of over-promising on integration speed given complex global operations
Recommended emphasisFocus on specific integration success metrics and cultural preservation examples
Regulatory authorities and policymakers
Communications objectiveDemonstrate the company's commitment to local economic development, technology sovereignty, and climate goals while advocating for policies that enable global technology collaboration.
Supports prioritiesRegional manufacturing model, Geopolitical risk management
Gaps / tensionsTension between advocating for global technology collaboration while addressing technology sovereignty concerns; lacks specific metrics for local economic impact demonstration
Recommended emphasisQuantify local manufacturing investments and job creation metrics
Supply chain partners
Communications objectiveBuild understanding of mutual benefits of sustainable supply chain practices and provide clear guidance for compliance with new standards.
Supports priorities80% SSP coverage by 2030, Human rights due diligence
Gaps / tensionsRisk of partner resistance to enhanced requirements; unclear how mutual benefits will be quantified and demonstrated to skeptical partners
Recommended emphasisDevelop concrete business case examples and implementation support resources
Board members and governance stakeholders
Communications objectiveDemonstrate clear progress on sustainability metrics tied to compensation and provide transparency on risk management effectiveness.
Supports prioritiesESG leadership, Sustainability-linked compensation
Gaps / tensionsChallenge of proving risk management effectiveness without revealing sensitive operational vulnerabilities; potential board concern about ambitious 2030 target achievability
Recommended emphasisBalance transparency with competitive sensitivity in risk reporting
Third party business partners
Communications objectiveEstablish clear expectations for third-party compliance while demonstrating how integrity standards protect mutual business interests.
Supports prioritiesZero tolerance for corruption, Global due diligence framework by 2030
Gaps / tensionsImplementation challenge with partners unfamiliar with anti-corruption protocols; risk of losing partners who resist enhanced due diligence requirements
Recommended emphasisProvide comprehensive training and phase-in approach for compliance requirements
Sustainability alignment check
E
Industrial customers
- Customer emissions avoidance several hundred megatons CO2e 2022-2030
- 50% of offerings support the core technology transition
Alignmentstrong
GapsNeed quantified ROI proof points for customer sustainability investments
E
Regulatory authorities and policymakers
- Climate targets alignment
- CDP A rating maintenance
Alignmentstrong
GapsNeed to demonstrate concrete local environmental impact metrics
S
Technology talent and workforce
- Gender diversity 30% women in senior management by 2030
- Zero harm workplace safety
- Employee engagement top-tier 80/100
Alignmentpartial
Gaps25% gender diversity target may be insufficient for competitive talent attraction
S
Supply chain partners
- 70% supply spending SSP coverage by 2030
- Human rights due diligence across value chain
Alignmentstrong
GapsPartner readiness and capability building support
G
Investors and financial markets
- Executive compensation 20% sustainability weighting
- Culture of integrity across value chain
Alignmentstrong
GapsNeed clearer sustainability ROI metrics for investor confidence
G
Board members and governance stakeholders
- 20% sustainability weighting in LTIP
- 40% women board members
- Culture of integrity oversight
Alignmentstrong
GapsTransparency balance between openness and competitive sensitivity
G
Third party business partners
- Global risk-based due diligence framework by 2030
- Zero tolerance for corruption
Alignmentstrong
GapsPartner education and compliance support systems
Gap register
| ID | Description | Stakeholder | Strategy element | Severity | Suggested action |
|---|---|---|---|---|---|
| G001 | Customer price sensitivity amid economic uncertainty may hinder premium technology adoption | Industrial customers | Revenue growth 5-7% | HIGH | Develop quantified ROI calculators and financing options for premium solutions |
| G002 | Talent retention risks with aggressive 3-5 acquisitions annually integration demands | Technology talent and workforce | Acquisition strategy | HIGH | Create dedicated integration support teams and retention incentives |
| G003 | Supply chain partner readiness gap for enhanced sustainability requirements | Supply chain partners | 80% SSP coverage by 2030 | HIGH | Create comprehensive partner capability building program |
| G004 | Investor skepticism about sustainability investment ROI without clear metrics | Investors and financial markets | Sustainability commitments | MEDIUM | Develop sustainability-linked financial performance dashboards |
| G005 | Lack of quantified local economic impact metrics for regulatory communications | Regulatory authorities and policymakers | Regional manufacturing model | MEDIUM | Develop standardized local impact measurement framework |
| G006 | Gender diversity target of 25% may be uncompetitive in technology talent market | Technology talent and workforce | Diversity commitments | MEDIUM | Benchmark against tech industry leaders and consider raising targets |
| G007 | Risk of partner attrition due to enhanced due diligence requirements | Third party business partners | Global due diligence framework by 2030 | MEDIUM | Implement phased compliance approach with support resources |
| G008 | Board concern about 2030 sustainability target achievability | Board members and governance stakeholders | 2030 sustainability targets | MEDIUM | Develop detailed milestone tracking and contingency planning |
KPI framework
| Theme / stakeholder | KPI | Definition | Target | Cadence | Data source |
|---|---|---|---|---|---|
| Industrial customers | Customer sustainability ROI demonstration | Quantified emissions reduction and efficiency gains per customer engagement | several hundred megatons CO2e customer impact by 2030 | Quarterly | Customer impact assessments |
| Technology talent and workforce | Critical talent retention rate | Retention of key technical personnel in AI/digital roles | 95%+ retention of identified critical talent | Quarterly | HR systems and performance reviews |
| Acquisition targets | Integration success rate | Acquired companies meeting integration milestones and talent retention targets | 90%+ of acquisitions meeting key integration KPIs | Semi-annual | Integration project tracking |
| Supply chain partners | SSP Coverage Progress | Percentage of supply spending in focus countries covered by Supplier Sustainability Business Management | 80% by 2030 | Annual | Supply chain management systems |
| Board members and governance stakeholders | Sustainability LTIP Weight | Percentage weighting of sustainability targets in Long Term Incentive Plan | 20% | Annual | Compensation committee reporting |
| Third party business partners | Due Diligence Framework Implementation | Percentage of third-party partners covered by risk-based due diligence processes | 100% by 2030 | Quarterly | Risk management systems |
Proof points inventory
Technology leadership in its core technology transition and automation
R&D investment of $1.3-1.5 billion annually (4.0-4.5% of revenues)
SOURCES Integrated Report 2023; Integrated Report 2025; Integrated Report 2024
Active portfolio management and growth strategy
Make five to ten small to mid-sized bolt-on acquisitions per year with 6-8 acquisitions annually delivering $500+ million in combined revenues
SOURCES Integrated Report 2023; Integrated Report 2025; Integrated Report 2024
Strong financial performance targets
Raised operational EBITA margin target to 16-20% (from 16-19%) and ROCE target to >20% (from >18%)
SOURCES Integrated Report 2025; Q4 2025 Group Results Presentation
Climate leadership and sustainability commitment
Science-based targets: 80% scope 1&2 emissions reduction by 2030, 100% by 2050, and several hundred megatons CO2e customer emissions avoidance through products sold 2022-2030
SOURCES Integrated Report 2025; Sustainability Report 2023; Sustainability Statement 2024
Innovation and digital transformation
Venture capital investments of €25-60 million annually in AI and digital ventures
SOURCES Integrated Report 2023; Integrated Report 2025; Integrated Report 2024
Operational excellence and accountability
the company's operating model increasing operational accountability, transparency, and speed with free cash flow conversion target >95%
SOURCES Integrated Report 2023; Integrated Report 2025; Integrated Report 2024
Circular economy and resource efficiency
80% of products to be covered by Circular Economy Framework by 2030 and zero manufacturing waste to landfill target
SOURCES Integrated Report 2025; Sustainability Report 2023; Sustainability Statement 2024
Technology leadership in AI and digitalization
180+ AI projects, 50%+ of R&D workforce focused on software/digital
SOURCES Integrated Report 2025; Integrated Report 2024
Customer emissions impact capability
several hundred megatons CO2e avoided through products sold 2022-2030
SOURCES Integrated Report 2025; Sustainability Report 2023
Employee safety commitment
Zero fatalities target, LTIFR reduction to 0.14-0.15
SOURCES Integrated Report 2025; Integrated Report 2024