Climate Change Data

Zehnder Group AG

Climate Impact & Sustainability Data (2022, 2023-01 to 2023-06)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:23,373 tCO2e/year (Scope 1+2, market-based)
Scope 1 Emissions:12,161 tCO2e/year
Scope 2 Emissions:11,212 tCO2e/year (market-based)
Scope 3 Emissions:4,917,348 tCO2e/year
Total Energy Consumption:366,367 GJ/year
Waste Generated:13,987 tons/year
Carbon Intensity:6.1 tCO2e/Tsd. EUR in 2022

ESG Focus Areas

  • Environment
  • Employees
  • Society

Environmental Achievements

  • Reduced total carbon footprint (Scope 1+2, market-based approach) by 27% compared to 2021 (23,373 tonnes of CO2e in 2022 vs 32,125 tonnes in 2021). This reduction is mainly driven by substantially increasing green energy purchases.
  • Saved approximately 50% of water, 25% of paint, 43% of electricity and 50% of gas per year at the Vaux Andigny production site in France due to improved efficiency measures and processes.

Social Achievements

  • Certified two more Zehnder sites (Vaux Andigny, France, and Manisa, Turkey) according to ISO 45001 or equivalent occupational health and safety management system.
  • Increased employee satisfaction significantly (82% in 2021, a 15 percentage point increase compared to 2018).
  • Filled 42.1% of advertised management positions with internal employees.

Governance Achievements

  • Revised and expanded the Zehnder Group Code of Conduct, including a new integrity line for anonymous reporting of violations.
  • Completed preparations for implementing the counterproposal to the Corporate Responsibility Initiative in accordance with Swiss legislation on due diligence obligations regarding conflict minerals and child labor.

Climate Goals & Targets

Long-term Goals:
  • Climate neutrality
Medium-term Goals:
  • Achieve certification of all production sites with metal-forming or plastic injection moulding activities according to ISO 45001 or equivalent.
  • Have all key production material suppliers sign the Supplier Code of Conduct or agree to adhere to a similar standard by the end of 2023.
Short-term Goals:
  • Complete at least one life cycle assessment for each main product family/technology over the next 18 months.
  • Develop and submit emissions reduction target for validation by SBTi.

Environmental Challenges

  • Reducing Scope 3 emissions (4,917,348 tonnes of CO2e in 2022), with the largest emissions stemming from the use of sold products (87.52%).
  • Ensuring sustainable practices across the entire value chain, including supplier engagement and accountability.
Mitigation Strategies
  • Analyzing Scope 3 emission categories and developing science-based emissions reduction targets through the Science Based Targets initiative (SBTi).
  • Developing a Circular Design Guideline in 2023 to be applied in all new product developments.
  • Implementing a Supplier Code of Conduct and conducting audits of key suppliers.

Supply Chain Management

Supplier Audits: Around 20 planned for 2023

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001 (at several sites)

Third-party Assurance: PricewaterhouseCoopers AG (limited assurance)

Reporting Period: 2023-01 to 2023-06

Environmental Metrics

ESG Focus Areas

  • Sustainability
  • Climate Protection
  • Digitalization

Environmental Achievements

  • Published 2022 Sustainability Report based on GRI standards
  • Officially committed to the Science Based Targets initiative (SBTi) supporting the 1.5-degree target of the Paris Agreement
  • Relocation of UK production facility to new energy-efficient premises in Maidstone

Social Achievements

  • Successful launch of new products in the ventilation systems segment
  • Website relaunches for various country websites improving customer access to content
  • Expansion of ComfoPlan+ planning software for easier ventilation concept creation

Governance Achievements

  • Share buyback program for capital reduction
  • Consistent pursuit of differentiated strategy of “growth for ventilation - harvest for radiators”

Climate Goals & Targets

Medium-term Goals:
  • Average annual sales growth of 5%
  • EBIT margin of 9%-11%

Environmental Challenges

  • Persistently high inflation rates and increased interest rates impacting the construction industry
  • Significant decline in planning permits for new buildings in Europe
  • Negative impact on renovation business and demand for radiators
  • Uncertainty surrounding government incentive schemes for heating replacements in Germany
  • Ongoing low levels of demand in China
Mitigation Strategies
  • Early introduction of cost-cutting measures
  • Differentiated cost management and selective structural adjustments
  • Reduction of temporary employees and shifts
  • Reduced working hours in Switzerland and France, workforce reduction in Turkey, and partial outsourcing of production in China
  • Proactive pricing policy
  • Cost reductions and efficiency improvements

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

  • ComfoVar Aero airflow controller
  • Combination of Zehnder ComfoAir Q ventilation system with Zehnder ComfoClime Cool air tempering unit