RUAG International Holding Ltd
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate change and carbon emissions
- Energy efficiency and sourcing
- Responsible sourcing
Environmental Achievements
- Launched an energy saving campaign
- Switched to electricity from 100% renewable energies in Austria
- Implemented continuous energy savings through technical optimization in Austria
- Implemented step-by-step conversion to LED lighting in Austria
- Expanded electromobility in Austria
Social Achievements
- Launched a comprehensive ESG project with the aim of publishing a far-reaching ESG report for the first time in 2023
- Launched a space incubator to support start-ups
- Launched internal STARS program including Woman Alliance Community and Work out Loud platform
Governance Achievements
- Launched a comprehensive ESG project
- Implemented a whistle-blower system
- Integrated Code of Conduct for Business Partners into General Terms and Conditions
- Systematically implemented the “Anti Corruption” directive
- Expanded enterprise risk management system to include all major ESG topics
Climate Goals & Targets
Long-term Goals:
- Privatization of Beyond Gravity by the end of 2025
Medium-term Goals:
- Achieve net zero emissions (target year not specified)
Short-term Goals:
- Publish a comprehensive ESG report in 2023
Environmental Challenges
- Global inflation and supply chain disruptions
- Higher Covid sickness rates in the first months of 2022
- Supply chain difficulties intensified with the start of the Ukraine war
- Lower margins in the Satellite business at Beyond Gravity
Mitigation Strategies
- Targeted measures such as specific stockpiling of critical materials and components
- Expansion and extension of strategic partnerships
- Reduction of “single-source” materials and regular monitoring
- Investments in new production facilities in Decatur and Linköping
- Improving productivity, quality and increased cost flexibility at RUAG Aerostructures
Supply Chain Management
Responsible Procurement
- Supplier commitment to business code of conduct and defined goals
- Software-based monitoring and evaluation solution
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, SASB
Certifications: ISO 14001
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:116'330 tCO2-eq (2022)
Scope 1 Emissions:1,350.8 tCO2-eq
ESG Focus Areas
- Climate change and carbon emissions
- Energy efficiency and sourcing
- Responsible sourcing
Environmental Achievements
- Commitment to net zero greenhouse gas emissions within its own operations by 2026.
- Approximately 15% of the total energy consumption of the new facility in Linköping will be generated by solar panels on the roof. The new production facility in Decatur incorporates numerous energy-saving measures, including energy-efficient heating and cooling, variable-speed motors for compressed air and vacuum systems as well as LED lighting.
Social Achievements
- Launched a Group-wide ESG initiative in 2022.
- Strengthening the People & Culture division with new Chief People Officer.
- Opening the Lisbon site creating around 200 new jobs by 2025.
Governance Achievements
- Established anti-corruption training and directive.
- Updated Code of Conduct for Business Partners.
- Independent reporting office for whistle-blower system.
Climate Goals & Targets
Short-term Goals:
- Net zero greenhouse gas emissions within its own operations by 2026.
Environmental Challenges
- Inflationary market environment and strained supply chains.
- Delivery delays in the international supply chains, changing customer requirements and production volumes as well as one-off expenses due to the divestment projects.
- Reduced reliability and delivery dependability on the part of suppliers, changing customer orders and the suspension of individual programmes.
Mitigation Strategies
- Investments were made in the expansion of production and the digital future of the space business.
- Initiated attractive follow-up solutions for all areas of aerostructures.
- EZYone transformation project for the end-to-end digitalization of development, production and back office.
Supply Chain Management
Responsible Procurement
- Works closely with its own suppliers, in particular to implement laws and its own guidelines in relation to human rights issues.
Climate-Related Risks & Opportunities
Opportunities
- development of energy-efficient products
Reporting Standards
Frameworks Used: GRI
Sustainable Products & Innovation
- reusable payload fairings