V-Zug Ltd.

Climate Impact & Sustainability Data (2019-07 to 2020-12, 2021, 2023)

Reporting Period: 2019-07 to 2020-12

Environmental Metrics

Total Carbon Emissions:4,518 tCO2e/year

Scope 1 Emissions:4,169 tCO2e/year

Scope 2 Emissions:280 tCO2e/year

Scope 3 Emissions:69 tCO2e/year

Total Energy Consumption:113.2 TJ/year

ESG Focus Areas

Circular products and services
Employees
Environment, energy and climate
Society and sustainable growth

Environmental Achievements

CO2-neutral production since 2020, including offsetting via V-Forest reforestation project and internal CO2 levy.
Reduced CO2 emissions by 4% compared to 2019 due to less diesel use and reduced air travel.

Social Achievements

Launched V-ZUGconnect for dialogues on wellbeing, performance, skills and perspectives.
Increased share of women in top management roles to 20.3% in 2020.
Reduced turnover rate to 11.2% in 2020.

Governance Achievements

Human Resources department directly represented on the Executive Committee since November 2020.
Compliance with legal and regulatory requirements for corporate governance in Switzerland.

Climate Goals & Targets

Long-term Goals:

Achieve carbon neutrality across all scopes.

Medium-term Goals:

Further reduce CO2 emissions by 30%.

Short-term Goals:

Reduce use of private motor vehicles to less than 40% by 2022.

Environmental Challenges

Creating transparency in upstream supply chains and circularity.
Limited staff resources for sustainability initiatives.
Conflicting interests within the company.

Mitigation Strategies

Developing tools and metrics for better transparency.
Reliance on departments to share personnel and financial costs.
Further honing company profile and consolidating strengths in 2021.

Supply Chain Management

Supplier Audits: 67 audits in 2020

Responsible Procurement

Clear quality and sustainability standards; supplier code based on internal Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ISO 9001, ISO 14001, ISO 45001

UN Sustainable Development Goals

SDG 7, SDG 8, SDG 9, SDG 12, SDG 13

See Table 2 on page 19.

Sustainable Products & Innovation

AdoraDish V6000 dishwasher with heat pump, OptiDos washing machine function

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:4608 tCO2e/year

Scope 1 Emissions:4290 tCO2e/year

Scope 2 Emissions:289 tCO2e/year

Scope 3 Emissions:29 tCO2e/year (air travel)

Renewable Energy Share:Not disclosed

Total Energy Consumption:117.4 TJ/year

Water Consumption:49.6 Mm3/year

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Products and services for a future-fit society
Healthy and committed employees
Environment and climate protection
Entrepreneurship for sustainable prosperity

Environmental Achievements

Reduced Scope 1 and 2 CO2 emissions by 2% despite growth and transformation, primarily due to increased gas consumption in Zug and parallel operations at Arbon and Sulgen.
Achieved carbon neutrality for Scope 1 and 2 emissions through offsetting.
Successfully transitioned to the new, more stringent EU energy efficiency labels, with a significant portion of appliances still falling into the highest efficiency classes.
Implemented life cycle assessments for several appliances, providing insights into environmental impacts and informing design and production processes.
Substituted a more environmentally friendly alternative for a component made of conventional petroleum-based polycarbonate in the new Excellence Line, reducing the associated carbon footprint.

Social Achievements

Launched a tripping hazard awareness campaign, aiming to reduce workplace accidents.
Maintained a high first-time fix rate for appliance service visits (90.9%).
Increased the proportion of women in senior management roles to 23.6%.
Improved employee survey results, indicating progress in work satisfaction, commitment, and employee engagement.
Implemented a “Refurbishment for charity” project, refurbishing and donating used appliances to a local youth center.

Governance Achievements

Conducted an internal equal pay analysis, confirming equal remuneration for equal work.
Established a partnership with the Swiss Crisis Intervention Foundation for reporting serious grievances.
Developed a new supplier code based on the Code of Conduct.

Climate Goals & Targets

Long-term Goals:

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Medium-term Goals:

Reduce Scope 1 and 2 emissions by 80% by 2030.
Reduce the relative environmental impact by at least 40% by 2030.
Achieve significant reduction in Scope 3 emissions by 2030 (target definition in 2022).

Short-term Goals:

Achieve 90% recyclability of appliances by 2025.
Conduct life cycle assessments for all appliances by 2023.
Increase the proportion of women in senior management to >25% by 2025.
Stabilize and lower the absence rate by 2025.

Environmental Challenges

Supply chain disruptions due to the COVID-19 pandemic.
Increased workplace accidents (18.7% increase compared to 2020).
Slight increase in the absence rate (0.3 percentage points).
Pandemic-related travel restrictions limiting the number of supplier audits.

Mitigation Strategies

Implemented targeted measures and training to address workplace hazards.
Developed proactive risk management tools for supplier management (riskmethods and IntegrityNext).
Expanded online consultation services in response to the pandemic.
Deployed the services of leading audit and certification provider SGS for audits abroad due to travel restrictions.

Supply Chain Management

Supplier Audits: 62 audits/year (reduced due to pandemic)

Responsible Procurement

Code of Conduct, supplier sustainability requirements, self-assessments, confidentiality agreements, financial information, pre-audits, regular monitoring and improvement of ESG and compliance performance, zero-tolerance attitude towards forced labour and child labour.

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Development of energy-efficient products, expansion of renewable energy sources.

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ISO 9001, ISO 14001, ISO 45001 (Zug site)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

7, 8, 9, 12, 13

V-ZUG's initiatives contribute to these SDGs through resource-efficient products and processes, renewable energy use, employee well-being, responsible supply chain management, and climate protection measures.

Sustainable Products & Innovation

Excellence Line with environmentally friendly components, network-enabled appliances with eco-functions.

Awards & Recognition

Employers We Trust quality label for employee survey methodology.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:5130 tCO2e/year (location-based), 3690 tCO2e/year (market-based)

Scope 1 Emissions:3545 tCO2e/year

Scope 2 Emissions:1585 tCO2e/year (location-based), 145 tCO2e/year (market-based)

ESG Focus Areas

Climate Change

Environmental Achievements

Fully offset CO2 emissions from scope 1 and 2 through the Ripa Gar Foundation's Glen Lochay reforestation climate project in Scotland and a backup project in India.