Climate Change Data

On Holding AG

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Diversity & Inclusion
  • Responsible Manufacturing
  • Social Impact

Environmental Achievements

  • Decreased CO2eq emissions per unit of value added by 12% compared to 2019.
  • Enhanced incorporation of recycled polyester in products to 85%.
  • Developed CleanCloud®, a high-performance EVA foam made from carbon emissions (prototype stage).
  • Launched Cyclon™, a subscription-based circularity program for fully recyclable Cloudneo shoes and Cyclon-T apparel in 34 markets.
  • Launched Onward™, a re-commerce program in the US, giving 9,600+ used items a second life.

Social Achievements

  • No gender pay gap.
  • Increased diversity in recruitment.
  • 86% of On teammates believe they can be their authentic selves at work.
  • Supported 16 partner organizations globally through Right To Run program, impacting 60,000 community members.
  • Donated $200,000 in grants and 4,300 products through Right To Run.

Governance Achievements

  • Annual pay equity analysis.
  • Commitment to transparency and accountability.
  • Growing sustainability team (from 4 to 10 members).

Climate Goals & Targets

Long-term Goals:
  • 46% absolute reduction in Scope 1 and 2 emissions by 2030.
  • 55% economic intensity reduction in Scope 3 emissions by 2030.
  • 100% of strategic Tier 1 partners fully powered by renewable energy by 2027.
  • 100% of strategic Tier 1 and 2 partners to eliminate coal use by 2028.
  • 100% PFAS-free by 2027.
  • All vehicles 100% electric by 2030.
Medium-term Goals:
  • 100% recycled polyester, polyamide, and organic/recycled/petrol-free cotton in products by 2024.
  • 80% of strategic Tier 1 partners to achieve level 3 conformance with ZDHC MRSL by 2025.
  • 100% of Tier 1 manufacturing partners to have implemented a living wage by 2025.
  • Waste diversion rate at Tier 1 factories >90% by 2025.
Short-term Goals:
  • All On o/f_f.ligaices and stores powered by 100% renewable electricity by 2024.
  • 100% of Tier 1 and 80% of strategic Tier 2 partners to undergo workplace standards audit by 2023.
  • Develop a comprehensive guideline for sustainable packaging by 2023.

Environmental Challenges

  • Supply chain disruptions.
  • Data limitations and quality issues in emissions reporting.
  • Achieving 100% renewable energy for district heating.
  • Scaling circularity initiatives.
  • Ensuring living wages across the supply chain.
Mitigation Strategies
  • Revised methodology and recalculated emissions data since 2019.
  • Exploring innovative ways to reduce district heating impact.
  • Piloting projects to improve waste management and chemical management.
  • Collaborating with partners on renewable energy solutions.
  • Gathering wage data and providing training to suppliers.

Supply Chain Management

Supplier Audits: 100% of Tier 1 suppliers audited in 2022.

Responsible Procurement
  • Supplier Code of Conduct
  • Chemical Management & Testing Guidelines
  • Higg FEM assessments

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Innovation in sustainable materials

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), GHG Protocol, Planetary Boundaries, Life Cycle Assessment (LCA)

Certifications: bluesign®

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 10 (Reduced Inequalities)

Initiatives contribute to these goals through renewable energy use, waste reduction, emissions reductions, responsible sourcing, and social impact programs.

Sustainable Products & Innovation

  • CleanCloud®
  • Cloudneo
  • Cyclon-T