Climate Change Data

SGS SA

Climate Impact & Sustainability Data (2013, 2019, 2020, 2021, 2022, 2023)

Reporting Period: 2013

Environmental Metrics

ESG Focus Areas

  • Sustainability in the furniture and furnishings industry
  • Nutritional sustainability and environmental product declaration
  • Sustainability in the electrical and electronics industry
  • Sustainability in the food industry
  • Chemical safety in toys
  • Cosmetic packaging migration

Environmental Achievements

  • Over 2000 products by 51 manufacturers achieved BIFMA level® certification (as of February 2012)
  • Development of Product Category Rules (PCRs) for furniture life cycle assessments by BIFMA
  • Implementation of Enhancing Furniture’s Environmental Culture (EFEC) program by AHFA members leading to waste and energy reduction
  • Over 1000 environmental declarations registered for electrical, electronic, HVAC and refrigeration products under the PEP ecopassport program (since late 2011)

Social Achievements

  • Development of sustainable supplier programs using GSCP guidelines to improve working and environmental conditions in global supply chains
  • Focus on improving collaboration with milk suppliers to develop new working methods (Sainsbury’s example)

Governance Achievements

  • Implementation of EFEC program by AHFA members leading to less reporting, permit flexibility, faster approvals and reduced fees
  • Development of “Smart” compliance strategies for managing restricted substances (RoHS, REACH, Prop 65) in the electronics industry

Climate Goals & Targets

Environmental Challenges

  • Compliance with evolving global chemical regulations (RoHS, REACH, Prop 65)
  • Increasing visibility of environmental and social situation of suppliers in developing countries
  • Meeting increasing requirements for energy efficiency (ErP, Energy Star, EPEAT)
  • Ensuring compliance with EU Cosmetic Regulation (EC) No 1223/2009 regarding packaging migration
  • Managing the use of TRIS flame retardants in children's products and furniture due to health concerns and legislation
Mitigation Strategies
  • Development of “Smart” compliance strategies including software for supplier information management, supplier training, risk assessments, and data monitoring
  • Development of sustainable supplier programs based on GSCP guidelines
  • Implementation of Ecodesign practices guided by ISO 14062 and LCA
  • Use of food grade certificates and test reports according to Regulation (EC) No 1935/2004 for cosmetic packaging
  • Providing chemical and technical expertise to help achieve compliance with flame retardant legislation

Supply Chain Management

Responsible Procurement
  • GSCP guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14062, ISO 14025/TR, GSCP, REACH, RoHS, Prop 65, Energy Star, EPEAT, EU Cosmetic Regulation (EC) No 1223/2009, WEEE2, ErP, CLP Regulation (EC) 1272/2008, Regulation (EC) No 1935/2004, Regulation (EU) No. 10/2011

Certifications: BIFMA level®

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:159,848 tCO2e
Scope 1 Emissions:113,443 tCO2e
Scope 2 Emissions:16,758 tCO2e
Scope 3 Emissions:917,839 tCO2e
Renewable Energy Share:94%
Total Energy Consumption:934,291 MWh
Water Consumption:1,900,000 m3
Waste Generated:54,032 tons
Carbon Intensity:1.7 tCO2e/FTE; 24.2 tCO2e/million CHF

ESG Focus Areas

  • Professional Excellence
  • People
  • Environment
  • Community

Environmental Achievements

  • Maintained carbon neutral status
  • 22% decrease in total greenhouse gas emissions since 2014
  • Increased renewable electricity investment

Social Achievements

  • 57% reduction in Lost Time Incident Rate since 2014
  • 60% reduction in Total Recordable Incident Rate since 2014
  • 4.6 million hours dedicated to employee training
  • Continued development of initiatives to protect human rights across the value chain

Governance Achievements

  • Named Industry Leader in the Dow Jones Sustainability Indices (DJSI) World and Europe for the sixth year in a row
  • Included in the CDP A List
  • Named CDP Supplier Engagement Leader
  • Ranked in the FTSE4Good Index for the third consecutive year
  • Received Platinum medal recognition from EcoVadis
  • Received RobecoSam Gold Class Award
  • Adopted the Integrated Reporting Framework

Climate Goals & Targets

Long-term Goals:
  • 100% renewable energy by 2020 (RE100 commitment)
Medium-term Goals:
  • Achieve 45% reduction in CO2 emissions (scopes 1, 2, and 3 (business travel)) by 2025 (against 2014 baseline)
  • Achieve 55% reduction in CO2 emissions (scopes 1, 2, and 3 (business travel)) by 2030 (against 2014 baseline)
  • Achieve 50% reduction in Scope 3 emissions by 2030 (against 2014 baseline)
Short-term Goals:
  • Reduce water consumption
  • Reduce annual CO2 emissions by 20% by 2020 (against 2014 baseline)

Environmental Challenges

  • Supply chain disruptions due to various risks (economic, political, social, environmental)
  • Climate change risks (transitional and physical)
  • Human rights risks in operations and supply chain
Mitigation Strategies
  • Sustainability risk assessment across 220 geographies
  • Implementation of the Task Force on Climate-related Financial Disclosures (TCFD) principles
  • Supplier Self-Assessment Questionnaire
  • SGS Supplier Code of Conduct
  • Human rights e-learning training
  • Business Continuity guidelines
  • Add Value with Lëss initiative

Supply Chain Management

Supplier Audits: Over 2,700 suppliers assessed via SAQ in 2019

Responsible Procurement
  • SGS Supplier Code of Conduct
  • Sustainability Assessment process for Tier 1 suppliers
  • Self-Assessment Questionnaire (SAQ)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events affecting facilities and employees
Transition Risks
  • Increased taxes on fuel and energy
  • Legislation mandating greater use of renewable energy
  • Less use of fossil fuels due to economy decarbonization
Opportunities
  • Development of lower-emission products and services
  • Increased demand for sustainability-related services

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, AA1000 Accountability Principles Standard, Integrated Reporting Framework, Greenhouse Gas Protocol (GHG Protocol)

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte SA

UN Sustainable Development Goals

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17

SGS services and operations contribute to various SDGs through empowerment, education, environmental sustainability, and professional excellence initiatives.

Sustainable Products & Innovation

  • Lower-emission products and services
  • Digital solutions for various sectors

Awards & Recognition

  • Industry Leader in DJSI World and Europe
  • CDP A List
  • CDP Supplier Engagement Leader
  • FTSE4Good Index
  • EcoVadis Platinum medal
  • RobecoSAM Gold Class Award
  • PwC’s Best Integrated Report in Switzerland

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:122,952 tCO2e/year
Scope 1 Emissions:98,274 tCO2e/year
Scope 2 Emissions:11,864 tCO2e/year
Scope 3 Emissions:829,450 tCO2e/year
Renewable Energy Share:95%
Total Energy Consumption:862,525 MWh/year
Water Consumption:1.7 million m3/year
Waste Generated:49,570 tons/year
Carbon Intensity:21.9 tCO2e/Million CHF in 2020

ESG Focus Areas

  • Professional Excellence
  • People
  • Environment
  • Community

Environmental Achievements

  • Maintained carbon neutral status since 2014
  • 43% decrease in total greenhouse gas emissions against a 2014 baseline
  • 95% electricity from renewable sources

Social Achievements

  • 48.8 training hours per employee
  • 0.23 Lost Time Injury Rate (decreased by 62% since 2014)
  • 0.36 Total Recordable Incident Rate (decreased by 68% since 2014)
  • 28.7% women in senior leadership positions
  • Launched SGS People 15 Day Challenge to boost employee morale

Governance Achievements

  • 100% of spend analyzed for sustainability risks
  • 83% of customers satisfied with SGS service
  • 99% completion rate of data protection and privacy eLearning
  • 0 human rights violations

Climate Goals & Targets

Long-term Goals:
  • Reduce CO2 emissions for scope 3 by 50% by 2030
  • Source 100% renewable energy by 2025 (RE100 commitment)
Medium-term Goals:
  • Reduce CO2 emissions for scopes 1, 2, and 3 (business travel) by 55% by 2030
  • Certify all sites with more than 200 FTE employees to ISO 45001:2018 and ISO 14001:2015 by 2023
  • Transition to a multi-site building management system by 2025
Short-term Goals:
  • Reduce CO2 emissions for scopes 1, 2, and 3 (business travel) by 45% by 2025

Environmental Challenges

  • Covid-19 pandemic impacting operations and supply chains
  • Climate change risks (extreme weather, regulatory changes, market shifts)
  • Supply chain disruptions
  • Data privacy and cybersecurity threats
Mitigation Strategies
  • Implemented Covid-19 safety measures and developed 'Next Normal' solutions
  • Adopted TCFD recommendations for climate risk management
  • Developed alternative sourcing strategies
  • Strengthened information security and data protection measures
  • Developed a new non-financial risk strategy

Supply Chain Management

Supplier Audits: Approximately 4,000 suppliers assessed globally

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability criteria in requests for proposals

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity of extreme weather events affecting employees and facilities
Transition Risks
  • Legislation mandating greater use of renewable energy
  • Less use of fossil fuels due to economy decarbonization
  • Increasing taxes on fuel, energy, and carbon
Opportunities
  • Development of lower emissions products and services

Reporting Standards

Frameworks Used: GRI Standards (comprehensive option), SASB Standard for Professional & Commercial Services Industry, AA1000 AccountAbility Principles Standard, TCFD

Certifications: ISO 45001, ISO 14001

Third-party Assurance: Deloitte SA

UN Sustainable Development Goals

  • SDG 1 (No Poverty)
  • SDG 3 (Good Health and Well-being)
  • SDG 4 (Quality Education)
  • SDG 5 (Gender Equality)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 9 (Industry, Innovation and Infrastructure)
  • SDG 13 (Climate Action)
  • SDG 15 (Life on Land)

SGS contributes to these SDGs through its services, operations, and community initiatives.

Sustainable Products & Innovation

  • QiiQ remote inspection app
  • Transparency-One supply chain visibility program
  • BEN AI data platform for fisheries sector

Awards & Recognition

  • Dow Jones Sustainability Indices (DJSI) World and Europe (first place for seven consecutive years)
  • DJSI Gold Award
  • CDP A- rating
  • CDP Supplier Engagement Leader
  • MSCI ESG AAA rating
  • Sustainalytics 'low risk' rating
  • ISS ESG Corporate Rating PRIME

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • ESG metrics included in variable compensation plans for Operations Council members.

Social Achievements

  • Commitment to promoting a workplace that provides equal opportunity for all employees and an environment of dignity and respect; Anti-Discrimination and Dignity at Work policy.

Governance Achievements

  • Continued 'say-on-pay' vote structure at the Annual General Meeting (consultative vote on the Remuneration report, binding votes on compensation amounts for Board of Directors and Operations Council).

Climate Goals & Targets

Medium-term Goals:
  • Sustainability Ambitions 2030
Short-term Goals:
  • Short-term 2023 sustainability targets aligned with the 2023 business strategy.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OaEC (Ordinance against Excessive Compensation at Listed Joint-Stock Companies), economiesuisse Swiss Code of Best Practice for Corporate Governance, SIX Directive on Information relating to Corporate Governance

Third-party Assurance: PricewaterhouseCoopers SA

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:116,505 tCO2e (Scope 1+2 market-based) + 850,621 tCO2e (Scope 3)
Scope 1 Emissions:77,261 tCO2e (vehicles) + 30,785 tCO2e (buildings)
Scope 2 Emissions:38,459 tCO2e (market-based)
Scope 3 Emissions:850,621 tCO2e
Renewable Energy Share:97%
Total Energy Consumption:947 MWh
Water Consumption:1,985,965 m3
Waste Generated:78,560 tons
Carbon Intensity:17.5 tCO2e/CHF million (Scope 1+2 market-based)

ESG Focus Areas

  • Compliance and integrity
  • Customer relationship management
  • Public policy
  • Sustainable procurement and supply chain
  • Human rights
  • Information security and data privacy
  • Workforce diversity
  • Learning and development
  • Employee engagement
  • Talent attraction and retention
  • Remuneration
  • Operational integrity
  • Community investment
  • Climate change
  • Water and waste management

Environmental Achievements

  • Reduced energy consumption through initiatives such as the Energy Efficiency in Buildings (EEB) program, sustainable transport, and Green IT.
  • Achieved 97% renewable electricity in total electricity consumption.
  • Further reduction in incident rates related to operational integrity.

Social Achievements

  • Increased investment in community and doubled the number of volunteering hours.
  • Improved Total Recordable Incident Rate (TRIR) and Lost Time Incident frequency Rate (LTIR).
  • 84.5% customer satisfaction score.

Governance Achievements

  • 100% of employees signed the code of integrity.
  • 99.9% of employees trained on the code of integrity.
  • 100% of operations analyzed for risks related to corruption.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions targets approved by SBTi
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Supply chain disruptions due to global events and geopolitical instability.
  • Data limitations in certain areas (e.g., refrigerant gases, district heating).
Mitigation Strategies
  • Ongoing dialogue with suppliers to reach the highest social, economic, and environmental standards.
  • Improving data collection and reporting systems.

Supply Chain Management

Supplier Audits: 100% of Tier 1 suppliers analyzed for sustainability risks

Responsible Procurement
  • Ongoing dialogue with suppliers to reach the highest social, economic, and environmental standards.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, SASB, Integrated Reporting Framework

Certifications: ISO 45001 (for some sites)

Third-party Assurance: PricewaterhouseCoopers SA (PwC)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1141845 tCO2e/year
Scope 1 Emissions:104760 tCO2e/year
Scope 2 Emissions:225036 tCO2e/year
Scope 3 Emissions:812049 tCO2e/year
Renewable Energy Share:97%
Total Energy Consumption:948152 MWh/year
Water Consumption:2051434 m3/year
Waste Generated:70348 tons/year
Carbon Intensity:16.9 tCO2e/CHF million (Scope 1+2 market-based)

ESG Focus Areas

  • Climate Change
  • Human Rights
  • Employee Engagement
  • Integrity
  • Supply Chain Sustainability
  • Operational Integrity

Environmental Achievements

  • Achieved 14% reduction since 2019 in scope 1 and 2 absolute GHG emissions.
  • Achieved 5% reduction compared to 2022 in scope 3 absolute GHG emissions.
  • Energy efficiency measures in 100 most energy intensive owned buildings reached 85% coverage (10% increase compared to 2022).
  • Achieved 10% reduction in car fleet GHG emissions since 2019.
  • Achieved 15% of cars with low-carbon technologies.

Social Achievements

  • Achieved 31.9% women at CEO-3 level.
  • Achieved LTIR of 0.17 and TRIR of 0.32, a 31% and 22% reduction respectively compared to 2018.
  • An additional 20% of operational sites obtained independent certification to ISO 45001 and ISO 14001, bringing the cumulative total to 644 sites.
  • Achieved 4.7 million hours and 48.1 hours per FTE of job-related training (27% and 15% variation compared to 2020).
  • Achieved 7.6/10 employee engagement average score and 8.3/10 of management support average score.
  • Achieved CHF 1.7 million of community donations and 32 590 hours of volunteering (22% and 89.5% increase respectively compared to 2019).

Governance Achievements

  • 99.9% employees trained on our Integrity Principles.
  • 65% of goods and services spend from suppliers who have signed our Code of Conduct or commit to comparable standards.
  • Sustainability criteria embedded in new RFP tool as mandatory fields for all online RFPs.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Supply chain disruptions (implied)
  • Data limitations (e.g., refrigerant gases, district heating)
Mitigation Strategies
  • Robust data gathering process
  • Improving data collection systems (e.g., refrigerant gases)

Supply Chain Management

Supplier Audits: 100% of Tier 1 suppliers analyzed for sustainability risks

Responsible Procurement
  • Code of Conduct for Suppliers
  • Sustainability self-assessment questionnaire (SAQ)

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Version 2021), SASB, TCFD

Certifications: ISO 45001, ISO 14001

Third-party Assurance: PricewaterhouseCoopers SA (PwC)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed