Governance
Our approach to corporate governance
Our culture drives our commitment to social and economic sustainability, implemented through our global management system, Hamra Model. This model includes our Corporate Governance Framework, and all corporate policies, procedures and guidelines that sets the baseline for how we act in our operations worldwide.
The approach we have to governance is designed to support long-term value creation for customers, employees, partners and society. This includes how we ensure compliance, transparency, accountability and continuous improvement.
DeLaval is part of the Tetra Laval Group, which includes Tetra Pak and Sidel, and The Corporate Governance Framework is developed by the Tetra Laval Board and DeLaval Group Management. The Framework sets the baseline for how we act in our operations worldwide, internally as well as in our external relations. It drives our key processes and is key to the sustainable and successful business of DeLaval and consists of the following components:
- Roles and Responsibilities
- The Code of Business Conduct
- Corporate Governance Policies
- Controls
“At DeLaval, we are committed to doing business the right way with integrity and in compliance with laws, with respect for human and animal rights. By doing so we also live up to our sustainability commitment.”
– Paul Löfgren, President & CEO DeLaval
Ensuring we do business in the right way
Our global management system, Hamra Model, set the baseline for how we act in our operations worldwide. This model includes our Corporate Governance Framework, and all corporate policies, procedures and guidelines. We also have an e-learning course available in 12 languages that ensures that our employees are well informed about our Code of Business Conduct, helping to create a culture of integrity and respect across the board. In addition, we launched a Sustainability training programme in 2025 to strengthen overall competence across the different areas of sustainability.
Anti-corruption
As part of our dedication to combating corruption, we require employees and partners associated with DeLaval to never offer, pay, request or accept illicit contributions.
Important highlights from our Human Resources Policy
Non-discrimination
We’re committed to hiring and treating all our employees fairly, without discrimination based on gender, nationality, religion, race, age, disability, sexual orientation, political opinion, union membership, or social or ethnic origin.
Equal opportunities
We believe in treating all employees with equal respect and dignity, providing everyone with equal opportunities to develop their skills and careers. Our commitment to diversity fuels our continuous growth. We cultivate a culture where job appointments, rewards, and personal achievements are based solely on individual abilities and performance. We also uphold a zero-tolerance policy for sexual harassment and other gender-based offences. We stand firm against any behaviour, including gestures, language, and physical contact that is sexually coercive, threatening, abusive, or exploitative in our workplace. We ensure compliance with all legal standards regarding wages and working hours in every country in which we operate, with local monitoring in place.
Working conditions and remuneration
We believe that the working conditions, wages, and benefits we offer to employees are competitive with those provided by other employers in local markets, within the industry. If any employee has concerns about working conditions or compensation, they are strongly encouraged to voice these concerns openly and directly to their managers or to Human Resources
Policies in place
Occupational Health and Safety (OHS)
The OHS policy outlines our commitment to creating and maintaining a safe and healthy work environment for all employees.
Corporate Governance Policies
The Hamra Model is a system that incorporates our Corporate Governance Framework, including our Code of Business Conduct, and all essential corporate policies. These make up the foundation for our processes helping ensure ethical and responsible operations at every level. In addition to OHS and governance frameworks, we maintain policies that guide human resources practices and promote transparency, such as our HR policy, ensuring all employees have the support and resources they need to thrive.
With our Code of Business Conduct as core
The cornerstone of our governance framework is the Code of Business Conduct. The Code defines our expectations for ethical behaviour and responsible business practices across the organisation. It is aligned with the UN Guiding Principles on Business and Human Rights and adapted to the specific context of the dairy industry.
Areas covered by our Code of Business Conduct address, among others, compliance with laws and regulations, health and safety in the workplace, anti-discrimination, confidentiality and information management, conflicts of interest, anti-corruption and antibribery, prevention of child labour and forced labour, export control, environmental responsibility, and trade compliance.
The Code applies to all our employees and has been extended to also cover suppliers and dealers. This end-to-end approach in the value chain represents an important step in strengthening ethical standards both within DeLaval and among our business partners.
Our Code of Business Conduct is underpinned by corporate governance policies. These policies complement the Code of Business Conduct by offering detailed guidance on critical aspects of DeLaval’s operations, including our internal control system.
Suppliers covering 91% of our sourcing spend have signed DeLaval’s Ethics & Sustainability Principles.
Accountability through our policies
The Code of Business Conduct is further supported by the DeLaval Group Corporate Governance Policies, which in more detail set standards for DeLaval’s operations in the various areas covered by the Code of Business Conduct.
Our Policies are a comprehensive control system across our whole organisation that ensures compliance with our standards and covers all our key focus areas. The control functions that are implemented throughout the organisation include:
External audits
External parties conduct independent audits of the financial statements of DeLaval’s legal entities. They provide assurance that our financial statements are accurate, complete and fairly presented.
Internal audits
Internal audits are conducted regularly to ensure that operations follow our corporate governance commitments and that proper internal controls are in place.
Management declaration
The head of each operating unit performs an annual Control Self-Assessment (CSA). This annual Management Declaration is signed by the CEO and reported to the Board as assurance of compliance with the framework.
Whistleblowing
We encourage staff and external stakeholders to report concerns regarding serious misconduct. A whistleblower can submit a report anonymously, and all reports are treated confidentially and investigated appropriately. Anyone who reports concerns in good faith is protected from negative repercussions, and feedback is normally provided withing three months and often much sooner.
Data protection and cybersecurity
We handle data in line with applicable laws and regulations, including the EU General Data Protection Regulation (GDPR). Our focus is on protecting customer and business information through appropriate safeguards and responsible practices. Cybersecurity awareness is embedded in our organisation through regular employee training. This helps them recognize common risks and follow secure practices in their daily work.
Our structure for sustainability governance
Aligned with the corporate governance framework is a DeLaval sustainability governance model. This model ensures that sustainability is an integrated part of everything we do and is led by the Global Sustainability Group.
The Sustainability Team oversees DeLaval’s sustainability strategies, and the Global Sustainability Group ensures that we deliver on these strategies and that our business is run in accordance with our vision: ‘We make sustainable food production possible.’
This includes defining targets and KPIs, monitoring progress and taking action. The Global Sustainability Group also informs and advises DeLaval Group Management, which is the company’s main decision-making body.
The Head of Group Sustainability leads the group, which consists of senior leaders from relevant stakeholder organisations. These include Product Management and Development, Digital Services, Supply Chain, Human Resources, Legal Affairs and all Clusters.
The senior leaders collaborate closely with the Head of Group Sustainability, who reports to DeLaval’s Senior Vice President of Corporate Communications and Sustainability.
The Global Sustainability Group ensures that we deliver on our sustainability strategies and that our business is run in accordance with our vision: ‘We make sustainable food production possible.’
Risk management
We identify, evaluate, and manage risks to ensure operational continuity. We are working according to our risk methodology and risk manual, and we manage risks through our risk‑management tool. Our methodology is based on the international COSO standard. We approach risk from two angles, operational and strategic.
Operational risks
Operational risk arises from internal or external events that impact business objectives. Losses may occur due to inadequate or deficient internal processes, people, and systems.
Strategic risks
Strategic risks stem from long-term shifts in the external environment. This includes political, economic, sociocultural, and technological trends, as well as from the design and implementation of strategies. These risks can either threaten the company’s viability or present opportunities to enhance its competitive advantage.
This approach enables us to quickly adapt to unexpected events, strengthening our ability to protect our operations, uphold ethical standards, and build a sustainable future.
Potential risks
In 2025, we focused on the most critical risk areas, where our efforts could have the greatest impact. While other risks also require attention, concentrating on these key areas has enabled us to deliver significant value and advance our overall risk management strategy.
Trust for milk
As the global population grows, the need for nutritious foods is more important than ever in helping to tackle hunger around the world. At the same time, there are increasing concerns among consumers about animal welfare and the impact of milk production on our environment.
How we work to mitigate the risk
We partner with associations and academic institutions to provide various scientific information regarding the nutritional value of milk and its environmental effects. For our customers, this means helping them reduce the environmental impact of each litre of milk produced in a way that benefits both the animals and everyone working on a farm.
Animal welfare
There is a high prevalence of production-related diseases in cattle herds. Various circumstances and a lack of knowledge can prevent some farmers from managing their farms effectively, resulting in mistreatment of animals.
How we work to mitigate the risk
We provide sensor technology to monitor a farm’s cows’ health, fertility, and production performance, so that health and welfare issues can be detected early and treated appropriately. These technologies also help farmers improve milk production and decrease their climate footprint.
Milk quality
Contaminated milk presents obvious risks to consumers, customers and our own brand. Food safety is critical for all parts of the dairy value chain.
How we work to mitigate the risk
Our compliance and R&D teams work to ensure that no hazardous or potentially hazardous materials and chemicals are used in or involved in the production of our products.
We are using recognised food standards such as food grade stainless steel as specified in food contact legislation.
People
Health and safety risks are always present, whether employees are working in our factories and offices or on customers’ farms.
How we work to mitigate the risk
We have safety procedures in place at our own facilities and monitor workplace accidents carefully.
We provide guides and training to our own staff on “How to stay safe in a cow environment”. We also provide advisory services to farmers on how to use our products in a safe and efficient manner and help them with safe farm behaviour. We have clear reporting procedures should an accident occur on the customers’ premises.