Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Waste and Circularity
• Conscious Materials
• Equality, Diversity, & Inclusion
• Empowerment & Education
• Rights & Respect

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 12% and Scope 3 emissions by 26% since 2019.
• Developed a comprehensive Greenhouse Gas (GHG) inventory across Scopes 1, 2, and 3.
• Strengthened retail architecture and operations protocol (GLEAM) to achieve greater energy efficiency.
• Began investigating and implementing opportunities to switch to renewable energy sources.
• Completed a product life-cycle assessment.
• Started creating guidance to define sustainable collections.
• Established a sustainable materials pipeline.
• At least 50% of brass came from sources with a recycling content of 70% or more.
• Evaluated several Infinity Accelerator programs in key material areas.
• Mapped and analyzed waste streams at Wattens, leading to programs aimed at reducing waste.
• Carried out a detailed assessment of packaging and began switching to FSC-certified and recycled paper materials.
• Recycled more than 100 tonnes of retail construction waste.
• Expanded and formalized the reignited crystals program.

Social Achievements

• Created and initiated an action plan to further improve WEPs benchmark score.
• Substantially increased diverse representation in advertising materials.
• Conducted first social media activity in support of Pride.
• Held digital transgender awareness sessions.
• Created a new strategy to work with the next generation of sustainable thinkers.
• Kicked off Sustainability Circle to address issues across the value chain.
• Established an internal strategy to increase understanding and engagement on sustainability.
• Completed an assessment with ELEVATE to evaluate human rights due diligence approach.
• Audited four manufacturing sites against internationally recognized standards.
• Continued monitoring working conditions of third-party supply chain, conducting 78 audits.

Governance Achievements

• Established a new governance structure ensuring sustainability is integral to operations.
• Created the Sustainability Circle to align core business functions towards a sustainable future.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Resource depletion
• Human toxicity
• Supply chain disruptions
• Waste management
• Energy consumption

Mitigation Strategies

• CO2 reduction measures
• Switching from virgin materials to recycled resources
• Implementing more efficient production systems
• Closing material loops
• Investing in energy infrastructure, including renewables
• Driving energy efficiency in manufacturing and retail
• Electrification of glass-melting furnaces
• Outbalancing remaining energy consumption with renewable Energy Attribute Certificates
• Increasing product material efficiency
• Operating a global hybrid working policy
• Switching from primary to recycled metal sources
• Engaging with suppliers who use more renewable energy
• Reducing transport emissions
• Optimizing internal processes to enable sea transport
• Recycling former elements of store architecture

Supply Chain Management

Supplier Audits: 78 audits in 2021

Responsible Procurement

• Responsible Sourcing Initiative (RSI), covering social and environmental aspects, up to tier 3 suppliers
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, ISO 22301:2019

Third-party Assurance: Ernst & Young Ltd (limited assurance on selected KPIs)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 5 (Gender equality)
• Goal 4 (Quality education)
• Goal 8 (Decent work and economic growth)
• Goal 6 (Clean water and sanitation)

Initiatives contribute to these goals through various programs and targets

Sustainable Products & Innovation

• Reignited crystals program
• 3D glass printing using recycled materials

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Waste and Circularity
• Conscious Materials
• Equity, Diversity and Inclusion
• Empowerment and Education
• Rights and Respect

Environmental Achievements

• Achieved a 30% reduction of Scope 1 & 2 Greenhouse gas emissions compared to 2021.
• 60% of brass used in internal production was from recycled sources.
• Increased the proportion of renewables in our energy mix from 22% to 36% in 2022.
• Kept 49% of global manufacturing operations' waste out of landfill (up from 41% in 2021).
• Recycled 600 tonnes of retail construction waste from store refurbishments in China (six times more than in 2021).

Social Achievements

• 77% of our global workforce are women, and 36% of our leadership roles are filled by women.
• Entered a partnership with The Trevor Project.
• In India, BSR HERproject provided a 12-month health awareness program to 575 workers.
• Partnered with 5 leading international design schools and educated over 150 students on integrating sustainability into their designs.
• 100% of recruiters attended unconscious bias workshops.

Governance Achievements

• Became one of the first members of the WJI 2030 (Watch & Jewellery Initiative 2030).
• Performed 77 social audits and 12 environmental audits of third-party suppliers.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions rose slightly in response to business growth.
• Supply chain disruptions (implied by the report's discussion of the war in Ukraine and energy crisis in Europe).

Mitigation Strategies

• Focusing on the reduction of Scope 3 emissions.
• Implementing a global energy saving plan.
• Responsible Sourcing Initiative to work with suppliers on sustainability.
• Switching from air freight to sea and land routes.

Supply Chain Management

Supplier Audits: 77 social audits and 12 environmental audits in 2022

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Initiative (RSI)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes, market shifts, energy crisis

Opportunities

• Development of energy-efficient products, renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards, Science Based Targets initiative (SBTi), Future-Fit Business Benchmark, LEED (Leadership in Energy and Environmental Design), GLEAM (GuideLines for Engineering Architecture and Management)

Certifications: SA8000, SMETA, ISO 45001, ISO 14001, ISO 50001, FSC

Third-party Assurance: Ernst & Young Limited (limited assurance on selected KPIs in 2021 report; no assurance in 2022 report)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fluenta collection (reignited crystals and recycled metal)
• Crystal Fishnet Banding (100% certified recycled materials)

Awards & Recognition

• Best Companies To Work For In Asia 2022 (Swarovski Manufacturing Vietnam)