Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human rights
• Labor standards
• Environment
• Anti-corruption

Environmental Achievements

• Reduced waste generation by about one-quarter compared to the previous year.
• Reduced CO2 emissions from production (though energy consumption relative to production volume rose due to low capacity utilization and parallel manufacturing in a new and temporary building in Thailand).
• Reduced CO2 emissions from transport (though air freight increased due to high demand and limited sea freight capacity during the COVID-19 pandemic; air freight from China to Europe was gradually replaced with rail transport).

Social Achievements

• Maintained workplace safety, further reducing the injury rate at plants.
• Implemented strict measures to prevent COVID-19 infections at the Shanghai plant and other locations, including work sharing, hiring freezes, early retirements, and a successful transition to home offices.
• Opened a new building at its largest production plant in Thailand, designed with employee well-being in mind (ergonomic workstations, recreation areas, cafeterias).
• Promotes employee diversity and intercultural collaboration.
• Supports employee development through individual training and development goals.

Governance Achievements

• Established a Business Ethics Committee to handle internal tips about anti-corruption and compliance violations.
• No anti-corruption or compliance violations were reported in fiscal year 2019/2020.
• Board of Directors and Executive Committee waived part of their compensation to reduce costs.

Climate Goals & Targets

Environmental Challenges

• Declining demand in key markets (industrial market and automotive industry, especially in Asia and Europe) exacerbated by the COVID-19 pandemic and lockdowns.
• Postponements of rail projects in China and Europe.
• Supply chain disruptions due to the COVID-19 pandemic.
• High expenses for winning and implementing new projects in the Automotive division.

Mitigation Strategies

• Introduced cost reduction measures early in the first quarter, including work sharing, hiring freezes, early retirements, reduction of overtime and temporary employees.
• Comprehensive review of Power Magnetics activities to improve profitability.
• Focus on strategically important initiatives such as electromobility development projects.
• Maintained capacity in research and development and process engineering.

Supply Chain Management

Responsible Procurement

• Responsible Business Alliance (RBA) Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Filters marked with labels instead of ink (reducing solvent use)
• Transformer rewinding services (extending service life and recycling copper)

Environmental Metrics

ESG Focus Areas

• Human rights
• Labor standards
• Environment
• Anti-corruption

Environmental Achievements

• Reduced waste generation by about one-quarter compared to the previous year.
• New head office building in Luterbach heated primarily with energy from groundwater, using an electrically powered heat pump and solar power system.

Social Achievements

• Further reduced the work-related lost time accident rate.
• Promotes employee diversity and intercultural collaboration.
• Supports career and family life compatibility through family-friendly working conditions.
• Confirmed adherence to the principle of equal pay for work of equal value.

Governance Achievements

• Maintains a Business Ethics Committee to review anti-corruption and compliance violation tips.
• No anti-corruption or compliance violation tips received in fiscal year 2019/2020.

Climate Goals & Targets

Environmental Challenges

• Challenges in visits to customers and global logistics due to longer transport times and higher costs.
• Shortage of semiconductor chips in the automotive industry slowed demand for Schaffner products.
• Higher logistics costs and raw material prices.
• COVID-19 related restrictions delayed certification for a new solution for smart grids.

Mitigation Strategies

• Implemented an infection prevention protocol at all Group locations.
• Price adjustments to offset higher raw material prices and elevated energy and logistics costs.
• Gradually replaced air freight from China to Europe with rail transport (though capacity bottlenecks sometimes necessitated a switch back to air freight).
• Reduced international travel and adopted digital collaboration methods.

Supply Chain Management

Responsible Procurement

• Adopted the Code of Conduct of the Responsible Business Alliance (RBA).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• New product family for robotics applications.
• New product families of EMC filter solutions for electric-vehicle charging stations and for LED lamps.

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Published first sustainability report in accordance with GRI standards.
• Relies more on sea freight than air freight to save shipping costs and emissions.
• Installed a solar roof on the factory in Thailand.

Social Achievements

• Not disclosed

Governance Achievements

• Published corporate governance report following SIX Swiss Exchange and Economiesuisse guidelines.
• Annual election of Board members by the General Meeting.
• Established Nomination and Compensation Committee and Risk and Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Supply chain bottlenecks.
• Price spikes in freight rates and raw materials.
• Impact of COVID-19 lockdowns in China and the war in Ukraine.
• Large-scale lockdown in China.

Mitigation Strategies

• Rapidly increased production capacity.
• Adjusted price structure to higher costs.
• Ensured material availability.
• Found alternative transportation methods.
• Passing on higher raw material prices and optimizing logistics costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed