Climate Change Data

Dätwyler Holding Inc.

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

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:80,000 tCO2e/year (Scope 1 and 2)
Renewable Energy Share:40% (by end of 2021)
Water Consumption:1.6 million m3/year (2020)
Waste Generated:14,119 tons/year (2020)

ESG Focus Areas

  • Climate risk and regulation
  • Pressure from society and investors to take climate action
  • Pressure from investors on ESG transparency and performance
  • Circular economy and life-cycle thinking
  • Demographic and Social Change
  • Industry specific sustainability trends

Environmental Achievements

  • Reduced absolute CO₂ emissions by 10% compared to 2019
  • Reduced relative CO₂ emissions by almost 5% compared to revenue over the past five years
  • 40% of Datwyler’s total electricity consumption at all plants from renewable energy sources at the end of 2021
  • Reduced water consumption by almost a fourth from 2.1 million m3 in 2016 to 1.6 million m3 in 2020

Social Achievements

  • Increased use of recycled aluminum in Nespresso’s coffee capsules
  • Implemented a Diversity, Equity, and Inclusion (DEI) policy
  • Established a Diversity Council
  • 85% of Datwyler employees in the “genuinely satisfied” category according to employee survey

Governance Achievements

  • Developed a new sustainability governance model
  • Established a Sustainability Steering Committee and Sustainability focus teams
  • Formalized ESG governance with policies and mechanisms
  • Integrated a sustainability component into variable pay for all bonus-eligible employees (planned for 2022)

Climate Goals & Targets

Long-term Goals:
  • Climate neutrality by 2030
Medium-term Goals:
  • Climate neutral operations (scope 1+2) until 2030
  • 30% female representation on the Board of Directors by 2025
  • 20% female representation in Executive Management by 2030
  • Ecodesign systematically integrated in all new products by 2025
Short-term Goals:
  • All new product developments include Ecodesign check by 2023
  • Reduce waste volume relative to tons of products produced by 3% per year
  • Reduce water consumption relative to tons of products produced by 3% per year
  • Reduce electricity consumption relative to tons of products produced by 3% per year
  • Reduce fuel consumption relative to tons of products produced by 6% per year

Environmental Challenges

  • Insufficient measurability and comparability of sustainability contributions
  • Challenges posed by established product and process development practices
  • Introducing eco-design principles, life-cycle, and zero waste thinking
  • Global supply chain disruptions due to the pandemic
  • Unprecedented material shortages
Mitigation Strategies
  • Following the Science Based Targets approach
  • Working closely with customers to develop more sustainable products
  • Creating an hybrid organization
  • Securing the supply of materials and guaranteeing production continuity
  • Shortening supply chains with a more local-for-local approach
  • Proactively reducing supply risk through dual sourcing and safety stocks

Supply Chain Management

Supplier Audits: 80% of suppliers met Code of Conduct requirement in 2020

Responsible Procurement
  • Binding Code of Conduct for suppliers
  • Guidelines for sustainable procurement
  • ESG criteria embedded in procurement processes
  • Supplier Sustainability Assessment program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 8
  • SDG 9
  • SDG 12
  • SDG 13

Datwyler contributes to these goals through its value chain activities, including safe and healthy workforce, employer of choice, high-quality products and ecodesign, resource-friendly production, and climate neutral operations.

Sustainable Products & Innovation

  • Sealing solution for lightweight engine in LeiMot project

Awards & Recognition

  • EcoVadis silver rating (2020)
  • PMA Companies’ Risk Management Excellence Award (Pennsauken site)
  • Awards from Ningguo local government (China)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:78,000 tCO2e (Scope 1 and 2)
Renewable Energy Share:38%
Total Energy Consumption:267,876 MWh/year
Water Consumption:1,523,875 m3/year
Waste Generated:17,205 tons/year

ESG Focus Areas

  • Climate risk and regulation
  • ESG compliance, transparency, and performance
  • Circular economy
  • Demographic and social changes
  • Industry-specific sustainability trends

Environmental Achievements

  • Share of renewable electricity increased from 20% to 38%
  • Reduction of CO2 emissions per revenue unit by 8.1%
  • New photovoltaic system in India put into operation
  • 2.5% reduction in absolute CO2 emissions compared to 2020
  • 14% decrease in relative CO2 emissions compared to 2020

Social Achievements

  • Diversity, Equity, and Inclusion (DEI) policy formulated
  • 85% of Datwyler’s employees are “genuinely satisfied”
  • Increased EcoVadis score (Silver rating fourth time in a row)

Governance Achievements

  • Reduction of the accident rate from 0.33 to 0.31 (work-related accidents / working days)
  • Sustainability targets integrated in compensation systems

Climate Goals & Targets

Long-term Goals:
  • Climate neutrality (Scope 1 and 2) at all sites worldwide by 2030
Medium-term Goals:
  • Waste-free production and reduction in water consumption relative to tons of products produced by 3% per year
  • Climate neutral operations (scope 1+2) by 2030 applying the Science Based Targets (SBT) approach
  • Reduce waste volume relative to tons of products produced by 3% per year
  • Reduce water consumption relative to tons of products produced by 3% per year
  • Reduce electricity consumption relative to tons of products produced by 3% per year
  • Reduce fuel consumption relative to tons of products produced by 6% per year
  • 20% female representation in Executive Management by 2030
Short-term Goals:
  • All new product developments include eco-design check by 2023
  • Reduce electricity by 3% and heating by 6% relative to sales

Environmental Challenges

  • Dependence on resources in certain regions
  • Supply chain disruptions
  • Need to reduce Scope 3 emissions
Mitigation Strategies
  • Investing in renewable energy sources (photovoltaic systems)
  • Developing alternative sourcing strategies
  • Implementing eco-design principles
  • Quantifying and addressing Scope 3 emissions

Supply Chain Management

Supplier Audits: Supplier Sustainability Assessment program covering 80% of spend

Responsible Procurement
  • Code of Conduct for suppliers
  • Guidelines for sustainable procurement
  • ESG criteria embedded in procurement processes

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

  • 3
  • 4
  • 5
  • 8
  • 9
  • 12
  • 13

Datwyler's activities contribute to these SDGs through various initiatives described in the report.

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:38% (2021)

ESG Focus Areas

  • Climate Change
  • Health and Safety
  • Human Rights
  • Diversity and Inclusion
  • Governance
  • Supply Chain Sustainability
  • Waste Reduction
  • Resource Efficiency
  • Renewable Energy

Environmental Achievements

  • Reduced CO2 emissions per revenue unit by 8.1% for the fourth consecutive time (2021)
  • Increased electricity from renewable sources to 38% of total consumption (2021)
  • Reduced water consumption per revenue unit by 12.7% for the fifth consecutive time (2021)
  • Improved recycling rate to 74.1% for the fifth consecutive time (2021)
  • Schattdorf plant reduced CO2 emissions by 1300 tons/year (since 2008) and further by 2300 tons/year (since 2012) by switching to renewable energy sources.
  • DuraCoat™ product design reduced aluminum usage by 15%.

Social Achievements

  • Supported local communities in Kesurdi, India through CSR programs, including water treatment system installations and maintenance.
  • Provided 45 days of food for a Covid-19 treatment hospital and 200 meals a day for underprivileged people in India.
  • Initiated numerous community projects involving employee participation.
  • Worked with NGO Planet Water to improve local infrastructure in India, providing clean drinking water to over 10,800 people.

Governance Achievements

  • Member of the UN Global Compact since 2009.
  • Produces annual sustainability reports following GRI guidelines.
  • Issued a formal Diversity, Equity, and Inclusion (DEI) policy in 2020.
  • Formed a new talent development team in 2020 to promote diversity and inclusion.

Climate Goals & Targets

Long-term Goals:
  • Become carbon neutral by 2030
Short-term Goals:
  • Reduce waste volume relative to revenue units by 3% per year
  • Reduce water consumption relative to revenue units by 3% per year
  • Reduce electricity consumption relative to revenue units by 3% per year
  • Reduce fuel consumption relative to revenue units by 6% per year

Environmental Challenges

  • High greenhouse gas emissions compared to other industries.
  • Supply chain challenges related to the shift to complex biologics and offshoring of manufacturing.
  • Lack of diversity in clinical studies.
  • Risks associated with data privacy in digital health.
  • Environmental regulations in emerging markets.
Mitigation Strategies
  • Membership in Alliance to Zero to achieve net-zero emissions.
  • Transitioning to electric vehicle fleets.
  • Redesigning buildings for energy efficiency.
  • Redesigning products to be less carbon-intensive.
  • Eliminating single-use plastics.
  • Implementing cutting-edge firewalls and cybersecurity measures.
  • Supporting research on clinical trial bias to increase diversity.
  • Implementing a comprehensive ESG strategy with quantifiable targets.

Supply Chain Management

Responsible Procurement
  • Use of recyclable materials
  • Reduction of plastic in packaging

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

  • DuraCoat™

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:90'116 tCO2e/year (Scope 1 and 2)
Scope 1 Emissions:13'819 tCO2e/year
Scope 2 Emissions:76'297 tCO2e/year (market-based)
Scope 3 Emissions:250'000 tCO2e/year (estimated)
Renewable Energy Share:30.7% of total energy use
Total Energy Consumption:318'114 MWh/year
Water Consumption:2'354'929 m3/year (including 747'230 m3 groundwater cooling)
Waste Generated:21'488 tons/year
Carbon Intensity:78.3 tCO2e/CHF million (2023)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Increased the amount of electricity from renewable sources to 38.3%
  • Offering first PCF analyses to customers based on requests
  • Strengthening the credibility of non-financial information through external assurance

Social Achievements

  • Achievement of the EcoVadis Gold rating, ranking in the top 5% of all evaluated companies worldwide
  • Employee commitment rate of 85, which is above industry benchmark
  • 70% of sites engaged in at least one external community activity

Governance Achievements

  • EcoVadis Gold rating
  • Increased focus on human rights
  • Integration of three sustainability metrics with a total weighting of 20% in the calculation of the variable incentive for all eligible employees

Climate Goals & Targets

Long-term Goals:
  • Human rights considerations naturally taken into account in all business decisions
  • Eco-design integrated in all new product developments
  • Low-waste and highly water-efficient production
  • Further improve ESG-compliant processes and supply chain and bring in sustainability solutions through our supplier base
Medium-term Goals:
  • Climate-neutral operations (scope 1+2) by 2030
  • Annual reduction in absolute scope 1 and 2 emissions by 4.2% compared to 2023
  • Product carbon footprint available for each new product
  • All quality-critical suppliers to sign Supplier Code of Conduct
  • Annual increase of the ESG maturity level of supplier base
  • Identify five product replacements with better sustainability performance annually by 2030
  • Employee commitment rate above industry benchmark for all sites
  • Strive for zero accidents, zero injuries, and a healthy working environment
  • ISO 45001 certificate at all production sites
  • Perceived as a sustainability leader by customers
  • High rankings in customer service rating for sustainability
Short-term Goals:
  • Reduce water consumption relative to net revenue by 3% per year
  • Reduce waste volume relative to net revenue by 3% per year
  • ISO 14001 and ISO 50001 certificates at all production sites
  • Board of Directors to reach 30% female representation by 2025
  • Executive Management to reach 20% female representation by 2030

Environmental Challenges

  • Supply chain disruptions
  • Increased attention of regulators, investors and large customers for ambitious climate goals for the whole value chain
  • Exponential growth of SBTi commitments and scope 3 analyses
  • Mandatory disclosure of climate governance, risks, and strategy (TCFD guidelines)
  • Growing customer preference regarding low carbon products and solutions
  • Increasing ESG regulations
  • Increased requirements from regulators, investors, and NGOs on diversity in management and workforce, and on protecting human rights
  • Regulations pertaining to human rights, health & safety, and environment
  • Far-reaching regulations on responsible supply chains
  • Global warming contributing to more unpredictable events, such as natural disasters or droughts
  • Scarcity of water impacting operations
  • Stricter environmental regulations (e.g., potential ban on specific chemicals)
  • Carbon taxes leading to increasing costs of raw materials and energy
  • Social risks on the rise due to increasing regulation
  • Potential shortage of suitable labor in the future due to demographic trends
  • Inability to respond quickly enough to changing market demands
  • Risk of not meeting stakeholder expectations if ESG data is not reported transparently
  • Increasing regulatory requirements requiring additional monitoring of legal and geopolitical developments
  • Corruption incidents impacting business relationships and investor confidence
Mitigation Strategies
  • Updated sustainability strategy with higher focus on human rights
  • Human rights policy, risk and impact assessments, stakeholder consultations, and identification of salient human rights issues
  • New components and materials for electric vehicles supporting the transformation to e-mobility
  • Institutionalized and systematic risk management system
  • Proactive adoption of environmental changes/requirements
  • Measures to improve water efficiency
  • GHG reduction plan to reduce potential carbon taxes
  • 10 production sites sourcing 100% renewable electricity
  • Eight production sites producing solar power
  • Broad and proven supplier base and expertise in procurement teams
  • Encouraging suppliers to propose more sustainable materials
  • Increasing share of locally sourced materials
  • Development of high-quality components for the brake systems of electric vehicles
  • Development of efficient, system-critical sealing technologies
  • Defining measures to reuse waste water
  • Expanding sustainability risk management with a focus on climate change risks and risks in the supply chain
  • Business Continuity Planning (BCP) integrating key ESG risks such as climate change

Supply Chain Management

Supplier Audits: 65 suppliers assessed in 2023

Responsible Procurement
  • Supplier Code of Conduct
  • Guidelines for sustainable procurement
  • ESG criteria embedded into procurement processes
  • Local-for-local sourcing
  • Reducing packaging material
  • Sourcing environmentally friendly raw materials

Climate-Related Risks & Opportunities

Physical Risks
  • Changing temperature (air, freshwater, marine water)
  • Drought
Transition Risks
  • Increasing costs of raw materials
  • Technology substitution
  • Carbon pricing mechanisms
Opportunities
  • Access to new markets
  • Development of new products
  • Resource efficiency

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact, TCFD guidelines

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: KPMG

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 8
  • SDG 9
  • SDG 12
  • SDG 13
  • SDG 17

Various initiatives contribute to these goals through customer health and safety, chemical compliance, employer of choice, human rights and equal opportunities, resource-friendly production, eco-design, climate-neutral operations, sustainable supply chain, and value-driven engagement with customers.

Sustainable Products & Innovation

  • Components and materials for electric vehicles
  • Recycled plastic box for Healthcare product packaging
  • Projects to reduce need for fossil fuels in elastomer manufacturing (replacing oil-based polymer with sugar cane-based polymer, using vegetable-based plasticizer, replacing plastic fibers with modified cellulose)

Awards & Recognition

  • EcoVadis Gold rating