Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Employee Well-being
• Environmental Performance
• Product Energy Efficiency

Environmental Achievements

• Group-wide energy consumption in 2019 was below the level of the previous year (19,800 MWh vs 21,600 MWh) and again the lowest it has been for many years.
• The photovoltaic plant at the new production site in Vuadens produced 1,403 MWh of electricity in 2019 and fed it into the grid (compared with 1,230 MWh in 2018).
• The approximately 100 MWh of electricity produced annually by the photovoltaic plant at the Rorschacherberg site is consumed by the company itself.
• The company’s own paint shops use environmentally-friendly water-soluble paints rather than solvent-based paints wherever possible.
• Recyclable materials and waste such as oil, grease and chips are reused as part of a systematic recycling process.

Social Achievements

• Chemnitz site was honored by the employers’ association SACHSENMETALL as one of the top training companies in the industry.
• Monchengladbach site was honored by the local Chamber of Industry and Commerce as one of the top training companies in the region.
• Accident figures and absences through illness remained at low levels in 2019; no serious incidents involving employees were recorded.
• Numerous nutrition, healthcare and physical activity measures at the various sites are designed to enhance employee well-being.
• The high level of employee satisfaction is reflected in a staff turnover rate that has been low for years.
• In 2019, 145 apprentices and students were trained in more than ten professions.

Governance Achievements

• The “Starrag 2021” programme, launched in spring 2019, aimed for a significant and long-term sustainable improvement in profitability.
• New group structure implemented in mid-2019, geared towards the requirements of the target markets.
• Restructuring resulted in annual cost savings of CHF 8 million to CHF 10 million from 2021.
• The company ensures comprehensive transparency regarding the compensation of members of the Board of Directors and the Executive Board.

Climate Goals & Targets

Environmental Challenges

• Lower order intake in 2019 (26% below 2018 levels).
• Unsatisfactory earnings in 2019 (EBIT margin of 1.1%).
• Delays in order processing in previous years.
• Weakening economic environment in customer markets.
• Misjudgements of developments in customer markets or competitive environment.
• Failure in R&D and innovation activities.
• Lack of availability of financial resources.
• Natural events impairing operating activities.

Mitigation Strategies

• Implementation of the “Starrag 2021” programme to optimize product portfolio, leverage synergies, strengthen leadership, and improve project management.
• Job cuts at Mönchengladbach site (150 jobs) to reduce costs.
• Concentration on market segments and regions with best growth and earnings potential (China and US).
• Measures to improve project management to offset delays in order processing.
• Holistic risk management process to identify, monitor, reduce, and prevent risks.
• Cautious investment activity to manage financial resources.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swiss GAAP FER

Certifications: ISO 50001 (at Bielefeld, Chemnitz and Mönchengladbach sites)

Third-party Assurance: PricewaterhouseCoopers AG

Sustainable Products & Innovation

• eeMC (energy efficient machining centre) range of machine systems

Awards & Recognition

• Chemnitz site honored as top training company by SACHSENMETALL
• Monchengladbach site honored as top training company by local Chamber of Industry and Commerce

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Employee Well-being
• Energy Efficiency
• Environmental Performance

Environmental Achievements

• Group-wide energy consumption in 2021 was below the level of the previous year (18'000 MWh vs 18'300 MWh)
• Photovoltaic plant at Vuadens produced 1'317 MWh of electricity in 2021
• Photovoltaic plant at Rorschacherberg produced approximately 100 MWh of electricity annually, consumed by the company
• Use of environmentally-friendly water-soluble paints in paint shops
• Systematic recycling process for recyclable materials and waste

Social Achievements

• Low staff turnover rate for years
• No serious incidents involving employees were recorded in 2021
• Continued implementation of measures in workplace safety, health management, and working atmosphere
• Training of 123 apprentices and students in more than ten professions
• Chemnitz site honored as a top training company by SACHSENMETALL, Mönchengladbach site honored by the local Chamber of Industry and Commerce

Governance Achievements

• High marks for value reporting and corporate governance in external rankings (59th out of 238 in HarbourClub ranking, 43rd out of 171 in Inrate zRating)
• Implementation of the “Starrag 2021” programme, aiming to optimize earnings in the long term, including restructuring measures
• Permanent reduction in operating costs and staff costs by over CHF 30 million in 2020 and 2021

Climate Goals & Targets

Environmental Challenges

• Significant external and internal challenges
• Restructuring costs at the Mönchengladbach site (CHF 13.3 million)
• Ongoing negotiations with the works council at the Bielefeld site
• Most relevant trade fairs cancelled in 2021 due to the coronavirus pandemic
• Economic currency risks and pressure from the strong Swiss Franc

Mitigation Strategies

• Implementation of the “Starrag 2021” programme
• Consistent cost optimization and increase in process efficiency
• Reaching agreement with the works council on a reduction of 96 employees at Mönchengladbach
• Measures to ensure liquidity and profitability (capacity adjustment, cost-saving programs, working capital reduction, essential investments, stabilized credit lines)
• Continuous productivity increases and cost reductions in Switzerland to counteract pressure from the strong Swiss Franc

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• eeMC (energy efficient machining centre) range of machine systems

Awards & Recognition

• Chemnitz site honored as a top training company by SACHSENMETALL
• Mönchengladbach site honored by the local Chamber of Industry and Commerce

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installation of a new photovoltaic system at the Rorschacherberg site in 2023, expected to cover about half of the site's electricity needs with renewable energy.
• Replacement of lights in several halls with energy-efficient LED lighting.
• Purchase of 8 electric vehicles for service and sales employees.
• Installation of charging stations for electric vehicles at Chemnitz, Vuadens, and Rorschacherberg sites.
• Support for employees leasing job bicycles at German sites.
• Energy-efficient renovation of the apprentice workshop at the Rorschacherberg site in 2023.
• Switch to electronic advertising brochures from the third quarter of 2023, reducing printed brochures by 90%.
• Use of environmentally friendly water-soluble paints in paint shops.
• Systematic recycling of materials and waste.

Social Achievements

• Expansion of the training center at Rorschacherberg, doubling training capacity and supporting learners from the entire region.
• Training of 26 apprentices, including polymechanics, design engineers, IT specialists, logistics specialists, automation specialists, and commercial employees.
• Resumption of company sports events and family events after a two-year break.
• Manager training course in cooperation with “Great Place 2 Work”.
• Update of Business Conduct Guidelines, clearly defining ethical requirements and introducing a reporting procedure.

Governance Achievements

• Election of Christian Androschin and Bernhard Iseli as new members of the Board of Directors.
• Appointment of Martin Buyle as CEO.
• Appointment of Rainer Hansjürgens as Head of the Large Parts Manufacturing Systems (LPMS) business unit.
• Appointment of Christian Kurtenbach as Head of the High Performance Systems (HPS) business unit.

Climate Goals & Targets

Environmental Challenges

• Geopolitical turbulence, including the Ukraine/Russia conflict and its impact on the global economy.
• Supply chain disruptions due to geopolitical events.
• Shortage of skilled workers.

Mitigation Strategies

• Restructuring measures completed in 2021, resulting in a lower cost base.
• Focus on market segments with high growth potential.
• Expansion of the training center to address the shortage of skilled workers.
• Active cost management.
• Continuous productivity increases and cost reductions at Swiss locations to counteract the pressure of the strong Swiss franc.

Supply Chain Management

Responsible Procurement

• Revision of group-wide purchasing conditions, adding sustainability requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 14001

Certifications: ISO 14001, EcoVadis

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed