Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Our People
• Society
• Governance

Environmental Achievements

• 21.8% reduction in scope 1 and 2 CO2e emissions relative to net sales compared to 2020
• 40.4% of total electricity consumed came from renewable sources
• 85.4% of Franke production sites with a certified quality management system according to ISO 9001
• 8% reduction in waste relative to net sales compared with 2020
• 85% of Franke’s packaging came from renewable resources

Social Achievements

• Launched Franke Graduate & Early Career (GEC) Program
• 5.3% reduction in the number of injuries involving lost working time compared to 2020
• CHF 77,860 cash donations and over CHF 130,000 worth of products donated to charities
• New remote-working policy allowing employees to spend up to 40% of their time working remotely

Governance Achievements

• Implemented a new global strategic directive for monitoring and improving diversity and inclusion
• 24 out of 28 production sites certified to ISO 45001 standards (85.7 percent)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Worsening global cost of living
• Potential risks with increased remote working (limitations to teamwork and collaboration, increased demands on leadership skills)
• Challenges in accurately measuring water consumption across all facilities due to lack of water meters
• Challenges in obtaining accurate data on the impact of products and product efficiency improvements

Mitigation Strategies

• Developing a cohesive strategy for social engagement
• Building scope 3 emissions inventory through the Greenhouse Gas (GHG) Protocol and setting emissions reductions targets aligned with SBTi criteria
• Developing various tools to guide employees on remote working best practices
• Setting future targets for water consumption and discharge levels
• Conducting product life cycle assessments (PLCAs) for its products and engaging key suppliers through CDP Climate Change questionnaire

Supply Chain Management

Supplier Audits: Risk-based audits for high-impact suppliers

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (flooding, tornadoes) disrupting production

Transition Risks

• Not disclosed

Opportunities

• Increasing market for resource-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, Greenhouse Gas (GHG) Protocol, Carbon Disclosure Project (CDP), Science Based Targets initiative (SBTi)

Certifications: ISO 9001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 16

Detailed explanations of Franke's contributions to each SDG are provided throughout the report.

Sustainable Products & Innovation

• Franke “Mythos 2gether” induction hob
• Air Hub extractor fan
• Aerostation 3in1 hood
• Franke Cloud Hood
• Dalla Corte “Zero” coffee machine

Awards & Recognition

• Franke Home Solutions named one of the 150 most sustainable companies in Italy by Il Sole24Ore
• OBAL ROKU award for new cardboard sink packaging
• Golden Peacock Innovative Product / Service Award for Aerostation 3in1 hood
• 2021 Outstanding Product Innovation Award for Franke Cloud Hood
• 2021 Outstanding Quality Brand award
• 2021 Smart Label Award for Dalla Corte “Zero” coffee machine

Environmental Metrics

ESG Focus Areas

• Environment
• Our People
• Society

Environmental Achievements

• 7.5% reduction in natural gas consumption compared to 2022
• 14% of total electricity consumed came from renewable sources
• 20% reduction in Scope 1 and 2 CO2e emissions compared to 2022
• 77.2% of waste recycled (vs. 75.8% in 2022)
• An estimated 49.5% of stainless steel composed of recycled materials

Social Achievements

• 96% of employees trained in one of our Leadership Development Programs since the launch in 2022
• 300% increase in employees being reviewed in the talent management succession planning
• 22 out of 25 production companies are ISO 45001 certified in 2023
• Internal promotion rate for the Global Leadership Team was 74%
• More than 50% of Franke's employees had at least one My Contribution Dialogue

Governance Achievements

• 24 out of 25 production companies are ISO 9001 certified (96%)
• Sustainability award for Faber Italy from the German Institute for Quality and Finance

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions
• Reducing life-cycle impact on the planet

Mitigation Strategies

• Continuously increasing understanding of Scope 3 emissions and making better sourcing decisions
• Embedding circularity in the conception of offerings
• Analyzing distribution networks and partnering to find better solutions
• Fostering projects which reduce emissions or enable a switch to renewable sources
• Assessing and improving product life cycles and investing in R&D to optimize energy consumption

Supply Chain Management

Supplier Audits: For the third year, our suppliers fill in the CDP questionnaire to tackle our Scope 3 emissions.

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: United Nations Sustainable Development Goals (SDGs), Science-based Targets initiative (SBTi), Carbon Disclosure Project (CDP), Sedex, United Nations Global Compact (UNGC), Global Reporting Initiative (GRI), Greenhouse Gas Protocol (GHG)

Certifications: ISO 9001, ISO 45001

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Mythos T-Shelf hood

Awards & Recognition

• Sustainability award for Faber Italy from the German Institute for Quality and Finance