We started the new strategic cycle with an even stronger sustainability organization, more than 30 ESG targets to focus on and with the development of over 200 initiatives to achieve them.

With this financial year, we stepped into a new five-year sustainability strategic cycle. As a start, we have launched an industry-leading framework with more than 30 ambitious targets. Sustainability has also been embedded at the core of our corporate strategy and vision, which clearly shows its importance for dormakaba. Furthermore, we have strengthened our sustainability governance by simplifying the structure and setting up four Expert Groups, which play a key role in achieving our targets. The Expert Groups have started the development of more than 200 initiatives worldwide and have already achieved some important milestones. Key highlights include:

This is the first time that I am introducing the dormakaba Sustainability Report as the CEO of the company. And I am doing it with confidence, knowing that we are on the right track to contribute to a more sustainable industry and to strengthen our leading position in this area.

It has been half a year since we launched our new corporate strategy, Shape4Growth, and since then we have been passionately working towards our vision to become "the trusted partner worldwide for safe, secure, and sustainable places where people can move seamlessly". We keep emphasizing that sustainability is core to our future, to the building industry and thus to our business model.

Therefore, we have embedded sustainability in Shape4Growth as an important element of our customer centricity pillar, in recognition of the increasing demand for environmentally friendly products in the green building industry. For example, we have launched the ST PRO Green RC3 in the Austrian and Swiss markets. The product is a new, energy-saving automatic sliding door with a thermally separated profile system that reduces energy loss in the building due to a very low heat transfer coefficient. This is the first dormakaba product aligned with the EU Taxonomy climate change mitigation objectives, which is the classification system established to clarify which investments are environmentally sustainable, in the context of the European Green Deal.

Sustainability is also engrained in how we run our business. To walk the talk, we have started the implementation of three Group-wide directives that set minimum business requirements for environmental management and fair labor conditions in line with international standards.

Furthermore, our new sustainability framework and ESG targets have led to stronger collaboration, engagement, and accountability across many of our global functions, from HR to operations, product development and procurement. Four Expert Groups within the Global Sustainability Working Group, with a membership of more than 50 colleagues, are developing around 200 initiatives worldwide to achieve our ESG targets. We have made progress towards several of these targets and reached important milestones during the period under review.

For example, we achieved a 2.4% year-on-year reduction in Scope 1+2 carbon emissions. Particularly impressive is the increase in the manufacturing sites that have established energy management systems. As at 30 June 2022, 67% of our plants, local assembly centers and regional logistics centers have established energy management systems (previous year: 21%). Good energy management is key to meeting our climate targets.

And as part of the commitment towards a 1.5°C future and to reducing our operational emissions by 42% by 2030 (baseline 74,770 tCO2 e in FY 2019/20), we started a Value Discovery Audit process in partnership with Siemens at ten of our largest manufacturing sites. The aim of the partnership is to execute projects based on audits to discover energy efficiency and carbon saving potentials, and to maximize energy and CO2 savings by implementing the right strategies and measures for the unique site.

Siemens, in cooperation with our employees, identified efficiency and savings opportunities, ranging from low-cost operational improvements and control optimization approaches to capital-intensive equipment retrofits with an emphasis on the highest priority conservation initiatives. The Value Discovery Audit has been successfully closed at the ten sites, resulting a potential reduction of over 4,000 tCO2 .

Additionally, our manufacturing facility in Chennai (India) has expanded its on-site solar power generation capacity by 200% in the reporting year. Now, the site can cover 25% of its total energy needs from its own renewables. To reach our 42% reduction target, further initiatives are planned, including the electrification of the fleet, and further green electricity projects.

In terms of our goal to assess all high-risk suppliers for their sustainability management by a third party by 2027, we improved from 10% in the prior reporting period to 18.7% in the FY 2021/22. Further, we have seen a slight improvement in diversity and inclusion objectives, with female representation at management level at 20% (vs. 19% in FY 2020/21). We have signed the United Nations Women's Empowerment Principles (WEPs), as part of our commitment to promoting gender equality in the workplace, and have launched various projects and awareness-raising campaigns.

Our sustainability performance continues to be acknowledged by external parties. We were named as one of the most climate-conscious companies in Switzerland in a recent ranking by BILANZ, Le Temps and Statista. The ranking acknowledges our emissions reduction efforts and with it, our contribution to a low-carbon economy. In addition, our MSCI rating improved from A to AA in the reporting period.

Recent geopolitical and global issues, such as energy dependency, ESG-related regulations, disruptions in supply chains, and the market trend towards a greener economy, determine a clear path we all need to follow. Strategic initiatives led through a sustainability lens also contribute to innovation, employee and customer satisfaction, and ultimately to long-term business success.

Keeping to our sustainability commitments, we continue in this direction with a clear focus, setting higher sustainability standards within our industry, for every place that matters.

This is an excerpt of the original content. To continue reading it, access the original document here.

DORMA+KABA Holding AG published this content on 31 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2022 08:09:07 UTC.