Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employees
• Energy
• Society

Environmental Achievements

• Modernized boiler room and ice water facility at Sulgen plant, resulting in slightly lower energy amount per tonne of product.
• Installed CO2 recovery equipment at Sulgen plant, processing CO2 emissions for further use.
• Reduced lorry trips by 15% due to new logistics center.

Social Achievements

• Created 20 full-time employee positions in production due to higher processing volume and growth in Baby Care segment.
• Trained 11 apprentices, offering permanent employment contracts to 60% after apprenticeship completion.
• Offered English courses to 23 employees.

Governance Achievements

• Implemented a new enterprise resource planning system (ERP) for higher cost transparency and process simplification.
• Restructured Swiss operations under HOCHDORF Swiss Nutrition Ltd.
• Launched KAP AMAX project to optimize production planning and capacity utilization.

Climate Goals & Targets

Environmental Challenges

• Higher energy and water consumption due to growth in baby care and whey products.
• Lack of filling capacities in Baby Care segment.
• Intense competition in roller-dried whole milk powder market in Switzerland.
• Deterioration of market situation for lactose and whey proteins.
• Strong Swiss Franc impacting competitiveness.

Mitigation Strategies

• Modernized plant facilities and conducted energy analysis to identify optimization measures.
• Optimizing plant capacity in the short term and exploring external filling options for Baby Care.
• Developing and selling products with more added value, including proprietary production of lactose and whey proteins.
• Renegotiating supplier contracts in CHF and increasing prices in Baby Care area.
• Acquiring Uckermärker Milch GmbH and Marbacher Ölmühle GmbH for international growth.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Professional procurement in areas of gas, water, and power.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: BRC Standard (Version 6)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Employee well-being
• Climate and greenhouse gas emissions
• Waste prevention, water consumption and wastewater
• Sustainable milk and animal welfare

Environmental Achievements

• Developed Sustainability Strategy 2030 with ambitious goals and measures along the value chain (to be finalized by end of 2021)

Social Achievements

• Prioritized employee protection and maintained production and delivery capabilities during the COVID-19 pandemic
• Implemented OPTIMA efficiency improvement program

Governance Achievements

• Restructuring of the HOCHDORF Group, focusing on core business
• Development of Strategy 2025
• New composition of the Board of Directors
• Implementation of new organizational structure

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting supply chains, demand from Swiss premium chocolate manufacturers, and international projects
• Restructuring of the company leading to divestments and site closures

Mitigation Strategies

• Broad and diversified customer and product portfolio helped compensate for disruptions
• Restructuring focused on core business and improved gross margin and cost structure
• OPTIMA efficiency improvement program strengthened cost competitiveness
• Development of Strategy 2025 laid foundations for the future

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Improved operational cooperation with Pharmalys Laboratories

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• 80.7% higher energy costs
• Sharp rise in raw material costs
• Currency fluctuations
• Legacy burdens affecting 2022 results
• High level of debt

Mitigation Strategies

• Strict adjustment of product range and customer premiums
• Contract and price adjustments
• Broader base for procurement of strategic raw materials
• Securing raw materials for future growth
• Seeking long-term financing solution

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Securing a broader base for the procurement of strategic raw materials such as milk and whey

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed