Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employees
• Products and value chains
• Environment
• Social and societal engagement
• Integrity and compliance

Environmental Achievements

• 31 business units at 15 ZEISS Group production facilities were certified in accordance with the environmental management system ISO 14001 in 2018/19.
• ZEISS set clear targets for reducing energy consumption, carbon emissions, water consumption and waste.
• ZEISS aims to transition to carbon neutral energy by 2022.

Social Achievements

• ZEISS invests continually in the promotion and professional development of its employees and positions itself as an attractive employer.
• 62 million euros contributed to the ZEISS company pension in fiscal year 2018/19.
• EUR 1.1 million in funding for around 150 social projects at the sites in Germany.
• ZEISS provides support to a home in Tanzania where experts examine children with albinism and provide them with eyeglasses featuring special filters for their light-sensitive eyes.

Governance Achievements

• A compliance management system ensures that any errors are identified and corrected.
• Available in 14 languages the e-learning module on compliance topics can be accessed by employees all around the world.
• ZEISS approved a Code of Conduct in 2007 that is valid throughout the world.

Climate Goals & Targets

Environmental Challenges

• Reluctance to invest was felt in the traditional automotive and the associated supplier industries.
• The global market for eyeglass lenses continues to be characterized by fierce price pressure and ongoing consolidation activities among competitors.
• The market for camera lenses remained challenging and fiercely contested.
• Increasing demands on potential employers are becoming noticeable.
• Rising energy prices and the potential pricing of emission allowances as well as capacity bottlenecks in the supply chain in some industries are also driving up costs.
• The risk of a hard Brexit may have an effect on business in the UK as well as on the financial market, customs duties and taxes.

Mitigation Strategies

• ZEISS is continuously working to stabilize supply chains, reduce the dependence on individual suppliers and review partners’ business practices.
• ZEISS continuously adapts its strategic supplier pool as part of product group management.
• ZEISS conducts systematic audits for these suppliers that also include social standards and environmental aspects.
• A task force is in place to address Brexit risks.
• ZEISS is seeking to become carbon neutral with regard to its consumption of energy.
• ZEISS is positioning itself as a target-group-oriented employer as well as with a global recruitment strategy and a consistent recruitment process.
• ZEISS offers a broad spectrum of opportunities for development to attract professionals and managers and to retain them in the long term.
• A variety of location-based initiatives and social benefits are offered, including health promotion programs and models for reconciling work and family life.

Supply Chain Management

Supplier Audits: Around 50 percent of the external purchasing volume is covered by key strategic suppliers. These suppliers must accept the Responsible Business Alliance's Code of Conduct and forward it to their subcontractors.

Responsible Procurement

• Responsible Business Alliance's Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers GmbH (PwC)

Awards & Recognition

• top ranking in the 2019 Public Value Atlas

Environmental Metrics

ESG Focus Areas

• Climate action
• Circular economy
• Value for society

Environmental Achievements

• 17% reduction in relative water consumption compared to fiscal year 2018/19
• 14% reduction in relative waste accumulation compared to fiscal year 2018/19
• 5% reduction in relative energy use compared to fiscal year 2018/19

Social Achievements

• Launched "A Heart for Science" initiative to encourage STEM studies
• Conferred ZEISS Women Award for exceptional female IT students
• Trained 670+ managers and OHS officers in new OHS software

Governance Achievements

• Revised compliance training programs
• Established guidelines for compliant professional training events with healthcare professionals
• Optimized compliance risk assessment tool

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Increasing regulatory requirements on product safety and environmental compliance
• Water scarcity in some regions

Mitigation Strategies

• Implemented business continuity plans
• Developed a risk-based approach to supplier management
• Installed rainwater collection system in Bangalore

Supply Chain Management

Supplier Audits: Approximately 50 audits

Responsible Procurement

• RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Emissions trading, CO2 tax policy, regulatory changes, scarcity of oil, gas, and coal

Opportunities

• Demand for measuring and testing solutions in e-mobility; development of energy-efficient products and systems

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001 (33 business units), ISO 45001 (19 business units in Germany and 10 international sites)

UN Sustainable Development Goals

• SDG 3 (Health and well-being)
• SDG 4 (Quality education)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

ZEISS's products and initiatives contribute to these goals through healthcare solutions, educational programs, employee development, sustainable production, and climate protection measures.

Sustainable Products & Innovation

• Retrofit packages for measuring machines; resource-saving sunglass lenses; energy-efficient lithography systems

Awards & Recognition

• 2021 Environmental Technology Award in Baden-Württemberg for Retrofitting

Environmental Metrics

ESG Focus Areas

• Value for society
• Climate action
• Circular economy

Environmental Achievements

• ZEISS sites worldwide were almost entirely powered by green energy in fiscal year 2021/22
• Good progress made towards initial delivery of next generation of EUV lithography systems, which will enable even greater improvement in energy efficiency of microchips.

Social Achievements

• Launched "A Heart for Science", an internal volunteering program to kindle interest in STEM among young people.
• Aloka Vision Programme provided optical and ophthalmic care to over 300,000 patients in India.
• 11th ZEISS Women Award presented to three accomplished young students in IT.

Governance Achievements

• Expanded the Executive Board to include the function of Chief Transformation Officer (CTO).

Climate Goals & Targets

Environmental Challenges

• War in Ukraine
• Energy crisis in Europe
• Supply chain difficulties
• Ongoing COVID-19 pandemic
• High inflation
• Geopolitical uncertainty
• Tense labor markets
• Supply chain disruptions due to the war in Ukraine and high demand for electronics, special plastics, chemicals, and semi-finished metal products.
• Rising energy prices and potential gas supply restrictions in Germany.

Mitigation Strategies

• Internal task forces monitor and evaluate current developments and take preventive measures to safeguard business operations.
• Increased inventories of critical materials through longer-term purchase obligations or stockpiling.
• Addressing supply chain disruptions in task force mode using predictive models and alternative sourcing strategies.
• Reducing dependence on gas and compensating with alternative energies.
• Strengthening global positioning as an attractive employer.
• Differentiating recruitment strategy to cover different country requirements.
• Expanding recruitment capacity worldwide.
• Offering a broad spectrum of development opportunities and location-based initiatives and social benefits (health promotion programs, hybrid work models, work-family life balance).

Supply Chain Management

Responsible Procurement

• Demands that principal suppliers recognize the Code of Conduct of the Responsible Business Alliance (RBA).

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8
• SDG 9
• SDG 12
• SDG 13

ZEISS is contributing to the implementation of these sustainability goals through its business processes, product portfolio and services.

Sustainable Products & Innovation

• ZEISS Lattice Lightsheet 7 microscope
• ZEISS INTRABEAM intraoperative radiation device
• ZEISS PerformanceFit retrofitting program
• EUV lithography systems

Awards & Recognition

• Deutscher Zukunftspreis (German Future Prize) 2022
• Intel’s 2022 EPIC Distinguished Supplier Award
• 2021 Baden-Württemberg Environmental Technology Award