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Purpose and strategic objectives

Our purpose

We make the shift – advancing the world through engineering

We are forward thinkers, driven by our passion to continuously innovate smarter solutions and enable important shifts.

An illustration in the form of a circle divided into different parts showing Sandvik's purpose, core values and strategic objectives

Strategic objectives

Sandvik will create value by focusing on six strategic areas. We have defined targets for 2025 in each of them to ensure transparency and follow-through.
  • Shift to growth

    We have increased our growth ambitions and raised the long-term growth target that will be generated from organic and acquired growth.

    Targets and examples of actions
    2025 targets Examples of actions
    • A total growth of 7 percent (CAGR) at fixed exchange rates over a business cycle
    • A New Sales Ratio (NSR)* of 30–35 percent
    • Strategic acquisitions
    • Launch of innovative new products, many of which are connected to digitalization and automation

    *NSR is defined as share of sales of products younger than 5 years.

    Find more examples of actions as well as the results for 2022 in the Annual report

  • Digital shift

    We aim for digital leadership in our industries. We combine hardware and software to create optimized solutions for the manufacturing, mining and infrastructure industries.

    Targets and examples of actions
    2025 targets Examples of actions
    • Software and digital sales of SEK 6.5 billion
    • 70 percent of our sites to have modern Enterprise Resource Planning (ERP) platforms implemented to enable a seamless flow
    • Strategic acquisitions
    • Development of customer solutions for e.g. automation and operational insights

    Find more examples of actions as well as the results for 2022 in the Annual report

  • Sustainability shift

    Sandvik has an ambitious sustainability agenda with our four sustainability goals as a base. The goals takes a holistic approach that includes customers, suppliers and our own operations.

    Targets and examples of actions
    2025 targets Examples of actions
    • Reduce greenhouse gas emissions by 25 percent
    • Achieve 80 percent waste circularity
    • Achieve a Total Recordable Injury Frequency Rate (TRIFR) at 2.5
    • Commitment to the Science Based Targets initiative (SBTi)
    • Launch of products that help customers reduce their environmental impact
    • Collaboration with Engineers without Borders, Sweden

    Find more examples of actions as well as the results for 2022 in the Annual report

    Read more about how we work with sustainability

  • Customer's first choice

    We aim to be number one in a majority of the markets where we operate. This is achieved through strong brands and innovative offerings. Our strategic priorities include, for example, price leadership, providing a leading performance-based offering and and close relationships for customer insights.

    Targets and examples of actions
    2025 targets Examples of actions
    • 100 percent of our divisions to measure customer satisfaction and show verified improvements
    • Structured methods for measurement of customer satisfaction
    • Offering of solutions and expertise to support customers in their digital journey
    • Training of indirect sales channels in how our solutions can solve customer problems

    Find more examples of actions as well as the results for 2022 in the Annual report

  • Agile through cycle

    Being agile through a business cycle for us means being flexible in order to effectively manage both the upturns and downturns in line with macroeconomic changes.

    Targets and examples of actions
    2025 targets Examples of actions
    • Achieve an adjusted EBITA margin with the range of 20–22 percent over a business cycle
    • Optimization of operational efficiency
    • Build operational flexibility in e.g. the supply chain, production and logistics
    • Well-prepared contingency plans

    Find more examples of actions as well as the results for 2022 in the Annual report

  • Employer of choice

    We aim to be the employer of choice within our industries and attract, retain and develop top talents.

    Targets and examples of actions
    2025 targets Examples of actions
    • 25 percent female managers
    • An employee engagement rate above 80 percent
    • Various initiatives in areas such as engagement, diversity, inclusion and learning

    Find more examples of actions as well as the results for 2022 in the Annual report

Core values

Customer focus
We are agile, decentralized and make decisions close to customers.

Innovation
We are technology leaders, through innovation.

Fair play
We are ethical and compliant, dedicated to health, safety and sustainability.

Passion to win
We establish market leadership through empowered people, strong performance management and continuous improvements.

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