Category: Case Studies

Sustainability at Alvi Group – Laying the Foundation

Alvi Group has rapidly advanced its commitment to responsible business since formalizing sustainability efforts in 2021/2022. This has mainly been driven by increasing expectations from owners, customers, and spurred on by the initial scope of the Corporate Sustainability Reporting Directive (CSRD). This sharpened focus has led to the development of new policies, including a Supplier Code of Conduct and a group-wide Environmental Policy, integrating sustainability deep into operations. The creation of Alvi’s first sustainability report is another key outcome of this strategic shift.

A Strategic Approach to Sustainable Growth

Our sustainability strategy is informed by thorough benchmarking and stakeholder dialogue. It’s built on three core pillars:

Safe & Stimulating Work Environment: Prioritizing employee well-being, professional growth, and fostering an inclusive and diverse culture.
Sound Business Ethics: Upholding integrity, transparent stakeholder communication, responsible supply chain management, and a culture of integrity.
Environmentally Friendly Production: Minimizing environmental footprint through energy efficiency, waste reduction, and reducing Scope 1-3 greenhouse gas (GHG) emissions.

The sustainability strategy is not separate but integral to our business strategy, enhancing efficiency, managing risks, and strengthening stakeholder engagement. Recognizing the evolving landscape, we view our strategy as a “living document,” designed for continuous adaptation.

Crafting Our First Sustainability Report

Alvi Group’s 2024 sustainability report is structured in accordance with CSRD standards, which means we have collected hundreds of various qualitative and quantitative data points. This extensive undertaking has been challenging for a company of our size and business structure. However, it has provided invaluable insights into our operations and value chain, enabling us to identify key areas for future improvement.

A crucial step in preparing the report was conducting a double materiality assessment (DMA). This process identified over 70 potential impacts, risks, and opportunities across Alvi’s value chain. After a rigorous scoring, 18 material IROs were identified, aligning with six ESRS disclosure requirements: E1 (climate change), E3 (water & marine resources), E5 (resources & circular economy), S1 (own workforce), S2 (workers in the value chain), and G1 (business conduct), forming the report’s structure.

Alvi’s Path Forward

Our sustainability journey is ongoing and will continue to develop. When bringing forth our first sustainability report, we have identified several areas of improvement. Three key topics that will be prioritized going forward are:

Supply Chain Management: In 2025, key suppliers will be required to sign Alvi’s Supplier Code of Conduct, and a human rights checklist will be implemented for site visits.
Higher Data Quality: Alvi aims to transition from spend-based to more activity-based or supplier-specific data for Scope 3 GHG emissions, enhancing accuracy and identifying more effective reduction levers.
Continuous Improvement: The inaugural sustainability report provides a strong foundation. Alvi is committed to using insights gained to refine its strategy and improve processes across all ESG aspects.

“We’ve laid a solid foundation and now begins the hard work of translating our learnings into actionable results – it’s an exciting time ahead for Alvi as we continue to integrate sustainability into every aspect of our operations” says Måns Emeus, Sustainability Project Manager.

Our Commitment to Social Responsibility and Sustainable Development

As a core component of our company’s strategy, we are dedicated to integrating social responsibility with sustainable development. For years, we have consistently supported poverty-stricken areas in Daliangshan, Sichuan, China, by donating educational supplies. In 2024, we launched a solar streetlight project to provide students with a safer lighting environment. Meanwhile, our annual visits to Suzhou Welfare Institutes embody our commitment—engaging employees in providing care for orphans, organizing birthday celebrations for the elderly, and facilitating interactive activities as part of our systematic CSR practice.

From providing educational support in mountainous areas to offering care for children and the elderly, we drive social value through pragmatic actions. Looking ahead, we aim to deepen collaborations with non-profit organizations, expanding our social responsibility programs in education assistance and community services. Guided by the principle of sustainable development, we remain committed to contributing to societal well-being with continuous efforts.

Powering a Sustainable Future: Techmould Investment in Solar Energy

We are proud to announce a significant step forward in our commitment to sustainability and renewable energy. As part of our long-term environmental strategy, we have successfully completed the installation of a large-scale solar energy system on the roof of our facility in Suzhou, China. The energy system has a total capacity of 1,256 kWh.

Estimated
annual generation

1.2

million kWh

Estimated annual
emmision reduction

1300

tCO2e

Annual carbon
offset equivalency of

1800

trees planted

The project was executed in two phases. Phase 1, covering 6,500 square meters, went live on January 30th, 2024. Phase 2, which added another 1,100 square meters, was commissioned on September 12th, 2024. In total, our rooftop now supports 7,600 square meters of solar panels – a powerful symbol of our commitment to cleaner energy.

The system is estimated to generate approximately 1.2 million kilowatt-hours (kWh) of electricity annually. This production will cover around 18% of our total power consumption, significantly reducing our dependency on non-renewable energy sources.

This investment reflects both our responsibility and ambition to lead by example in reducing our environmental footprint

Mr. Fredrik Carlsson
Managing Director at Techmould

– Harnessing the power of the sun allows us to make a tangible contribution toward a more sustainable future, says Mr. Fredrik Carlsson.

In addition to reducing our reliance on fossil fuels, this solar installation will also contribute to a substantial reduction in CO₂ emissions with 1300 tons CO₂ saved annually. The energy produced each year is equivalent to the carbon offset of 1800 trees planted, making a measurable impact on our environmental goals.

This project marks a major milestone in our sustainability journey, but it is by no means the end. We remain dedicated to exploring further opportunities to improve our energy efficiency and reduce our environmental impact across all areas of our operations.

Together, we’re investing in a cleaner, greener tomorrow.

Driving Efficiency Through In-House Automation

In recent years, we have significantly enhanced our ability to design and build automation equipment internally—an important milestone in our continuous improvement journey.

– This is a step forward in our ongoing commitment to excellence, says Mr. Fredrik Carlsson, our Managing Director.

– By developing our own automation solutions, we gain greater control over quality, cost, and innovation.

Our in-house automation capabilities reduce the need for direct labor, increase production efficiency, and ensure consistent, high-quality output. These improvements not only strengthen our operational performance but also enhance our overall competitiveness—ultimately delivering greater value to our customers.

Mr. Victor Zhao, our Operations Manager, adds:

– Building automation in-house allows us to respond faster to production needs and tailor solutions that fit our exact processes. It’s a strategic advantage that supports both our team’s performance and our customer commitments.

With each innovation, we continue to streamline processes, raise standards, and create smarter solutions for the future.