Environmental Management 

Environmental management is embedded both at Group level as well as in local processes at the various locations. Several locations work with environmental officers, in others, environmental management is part of quality assurance processes.

National, regional and local laws and regulations must be adhered to at all sites as stipulated in the dormakaba Code of Conduct, and the Group Manufacturing Directive. Legal registers are maintained as part of the ISO 14001 management systems where applicable.

The Group Manufacturing Directive also includes expectations on achieving international standards for environmental management (ISO 14001), and energy management (ISO 50001). All manufacturing sites with more than 100 employees and having negligible hazardous materials in use are expected to maintain a management system based on ISO 14001 by the year 2021. Further, all manufacturing sites are expected to maintain a management system according to ISO 50001 by the year 2021.

Based on a further overview of dormakaba’s supply chain sites including plants, regional logistic centers, local assembly and distribution centers and service hubs, the Directive also gives a framework for expanding the coverage of sites certifying such management systems. Certifications are required for some sites based on a priority listing depending on size, energy consumption and environmental risks.

dormakaba products are manufactured around the world using different processes. Raw materials such as steel, brass, aluminum, zinc and glass are converted into door closers, cylinders, key blanks, hotel locks, sliding and revolving door systems and glass fittings, among other products. The potentially greatest environmental risks lie in the processes used for (1) electroplating and surface finishing, (2) painting, (3) melting, and (4) zinc and aluminum die casting. These processes are used at 25 of the 48 locations covered in this report. Therefore, dormakaba’s environmental management places emphasis on these four processes.

Already 29% of the production sites covered in this report benefit from the rigorous environmental standards set forth by ISO 14001 certification (financial year 2016/17: 33%). The slight decrease in percentage is linked to an increased scope in the reporting, with more sites covered in the 2017/18 financial year. We aim to increase this total to over 50% by 2021. In addition, three sites are certified to ISO 50001.

Segment-wide EHS Management in the Americas

Segment Access Solutions AMER (AS AMER) has developed a centrally managed approach to environment, health and safety (EHS) topics in the 2017/18 financial year. A segment-wide EHS policy and management system has been approved and covers 21 production facilities. The key performance indicators for the coming financial year will include water, energy and waste figures. Each facility will be tasked to improve over the baseline by a determined percentage and implement at least one water, energy and waste reduction project. Performance and results will be monitored and communicated monthly through the EHS Performance Review reporting. Nearly two million Swiss francs in capital expenditure has been allocated for related projects until the 2020/21 financial year.

In addition, the facility in Indianapolis goes beyond regulatory requirements in many aspects. A water-savings target of 5% year-on-year is in place. In the financial year 2017/18, a 14% decrease was achieved by investment in replacing old faucets with touchless valves, a new computer system for the cooling tower, and chillers to close loop water cooling systems. The facility has an industrial discharge permit that contains limits on metals that cannot be in the water at the time of discharge. The treated process water is tested before discharge to ensure compliance, and management is proactively informed if the testing shows are within 70% of the limit.

An energy reduction target of 5% (year-on-year) for heating and electricity is also in place.

The World Economic Forum’s Global Risk Landscape Report (2018) showed two of the three top risks as being climate change related. dormakaba's Materiality Assessment 2017-2021 showed that carbon emissions and energy were the sustainability topics where the company’s potential impact on sustainable development is the highest. As a tech-oriented company, dormakaba also believes in using the latest in scientific knowledge to guide a sound management approach. It has therefore signed a commitment letter to the Science-based Targets Initiative to set a science-based, Group-wide carbon emissions reduction target by the year 2020. In a first step this will involve reporting our Scope 3 emissions more fully as well as expanding the coverage of our Scope 1 and Scope 2 emissions to locations representing over 90% of employees. As a further commitment, dormakaba has set an interim carbon emissions reduction target of -5% tCO₂e by 2021 for the reporting scope and baseline year in this report.

To meet the commitment to the Paris Agreement, every business, government and individual has a role to play. A key element in reducing carbon emissions is to reduce energy consumption and source renewable energy. At dormakaba, energy-intensive processes include melting, and aluminum and zinc die casting. These are used in the production of hotel and high-security locks, door closers, fittings and door handles, among other products. dormakaba strives to continuously improve the energy efficiency for these processes.

Early in the 2017/18 financial year, dormakaba analyzed the water stress levels for its main production sites. This found that one in three sites have a potential for high to extreme water stress, defined as a water demand to supply ratio of 40% or greater for the respective municipality. The data stems from a geographical analysis of water stress at catchment level by the year 2020 for dormakaba main production sites based on the Aqueduct Water Risk Atlas (World Resources Institute) and AQUASTAT (Food and Agriculture Organization). Appropriate action plans for the sites having high or extreme water stress is under development.

Water Stress Level by Sites

Water consumption as well as effluents and waste management are of key importance during the electroplating, surface finishing, as well as painting processes. Filter systems ensure that potentially hazardous substances are not released externally.

Toxic waste arising from painting and electroplating are disposed of as special waste. In addition, scraps from turning and milling or punching are recycled, and are, for example, returned to the suppliers of the raw materials.

For the disposal of industrial waste, chemicals and the recycling of materials, certified disposal companies are commissioned. 

Greenhouse gas emissions

In the 2017/18 financial year, our total greenhouse gas emissions (GHG) amounted to over 75,000 tons of CO₂ equivalent (tCO₂e). More than two thirds were emitted as a consequence of electricity consumption, followed by heating and vehicle fuel consumption, and volatile as well as process gas emissions.

Climate-related initiatives implemented during the reporting year resulted in total annual savings of approximately 12,500 tCO₂e (nearly 17% of our total footprint).

Therein, we worked diligently to source renewable electricity wherever feasible, leading to an emissions avoidance of approximately 11,400 tCO₂e. Nearly 35% of the electricity that dormakaba consumed came from renewable sources. In our AS EMEA and AS DACH segments, this share already reached over 71% and over 50%, respectively. 

Due to the implementation of energy saving initiatives outlined in the following section, we expect an annual reduction of GHG emissions of approximately 1,100 tCO₂e.

Greenhouse gas emissions by source
(in tonnes CO₂e)

Scope 1 and Scope 2 emissions
(in tonnes CO₂e)^1,5

Greenhouse gas emissions by segment (in tonnes CO₂e)

1. Greenhouse gas inventory calculated in accordance with the WRI/WBCSD Greenhouse Gas Protocol. Emission factor sources: UK Defra (2015), US EPA eGRID (2017), Frischknecht (2017).
2. Scope 1: direct greenhouse gas emissions from sources owned or controlled by dormakaba
3. Scope 2: indirect greenhouse gas emissions from sources owned or controlled by another entity, as a consequence of dormakaba’s activities
4. The greenhouse gas emissions associated with electricity consumption are reported according to the “market-based approach,” as defined in the Greenhouse Gas Protocol Scope 2 Guidance. When reported according to the “location-based approach,” the emissions totaled 63,831 tCO₂e.
5. Scope 3 emissions are additionally reported in dormakaba's submission to the Carbon Disclosure Project (CDP).

Energy consumption

The total energy consumption was over 229,000 MWh in the 2017/18 financial year. Electricity and fuels for heating or manufacturing both play a crucial role in dormakaba's production processes, constituting nearly 87% of total energy consumption. The remainder is associated with the fuel consumption of our vehicle fleet.

Many components used to create dormakaba’s products are manufactured in-house, and purchased parts require further processing, both of which impacts on total energy demand. This is also where we focus our energy saving initiatives on.

In the reporting period, such initiatives were implemented or approved at more than a third of the production sites in scope and included retrofitting facilities to LED lighting systems, upgrading equipment such as industrial burners, as well as milling and molding machines, the optimization of heating and cooling systems, and the procurement of renewable electricity. 

As a result of these activities, we realized a total quantifiable annual energy savings in the amount of approximately 4,300 MWh for the sites covered in the scope of this report. In addition, over 29,000 MWh of green electricity was purchased in the reporting year.

Energy use (in MWh)

Purchased electricity by source (in %)

Energy use by segment (in MWh)

Purchased electricity by segment (in MWh) 

Percentage of purchased electricity from renewable sources by segment (in %)

Water

For the sites covered in the scope of this report, the majority of dormakaba’s total water consumption is municipal water used for cooling, manufacturing processes, and sanitation purposes. Wastewater is mainly discharged via the local municipal sewerage system in compliance with local requirements, and is treated by third-party companies where necessary.

Water consumption 

Wastewater discharge

Waste 

The generation of different waste streams is an inevitable consequence of dormakaba's operations. We monitor our waste by treatment method and by waste type. Approximately 73% of the waste stream was recycled, reused or recovered (including raw materials and energy recovery) in financial year 2017/18. At about 70% by weight, the largest proportion of waste is scrap metal.

Non-hazardous Waste by Type
(in metric tons)

Waste by treatment path

Hazardous Waste by Type
(in metric tons)

Materials Use

We use a variety of materials in our manufacturing processes and operations. The most utilized non-renewable raw material types include steel, brass, aluminum, nickel silver, zinc, gypsum board, glass and plastics. Wood, paper and cardboard are made from renewable resources, and also play an important role for our production and operations.

Steel, brass, aluminum, zinc and glass are converted into door closers, cylinders, key blanks, hotel locks, among other products.  Glass, wood and gypsum board are primarily utilized in sliding and revolving door systems, movable walls and glass fittings, for example.

Since the primary extraction of metals from ore and the subsequent refining processes are resource intensive, dormakaba uses metals with recycled content wherever possible. In addition, scrap metal is generally sent to recycling.

Materials use (in %)

Raw material use (in %)

Key Systems

The Key Systems plant in North Carolina (USA) focuses on closed-loop systems in its material use. For example, the facility purchases brass scrap from recyclers to produce its keys. The plant also recycles all internal scrap, either back into own processes or selling it to a local approved recycler. Scrap material is also sent back to the original producer, who then uses this material to make our products, thus resulting in a closed loop system. Similarly, treated water is reused in the manufacturing processes where possible with minor amounts returned to the municipality as non-potable effluent. The long-term goal is to ensure that treated water is acceptable for process reuse and water reduction and recycling initiatives are continued. In terms of emissions, dust collection systems are employed throughout the facility to collect all metal processed dust and recycle the dust back through the manufacturing process.

Finally, the plant is committed to ISO 50001 certification in the 2019/20 financial year. Related projects include air compressor system upgrades, LED lighting systems, boiler control upgrades and upgrades to the key milling machine.

The plant in India is leading the way on energy self-sufficiency by having installed solar lighting in some areas. In the coming financial year 2018/19, the solar panel initiative will be expanded to the canteen.

In Colombia, the facility has released an environment, health and safety policy in the 2017/18 financial year. Major focus has been laid on wastewater management. This involved identifying and controlling the processes that generate wastewater, establishing the conditions for storage and transport of hazardous materials and defining a contingency plan for the containment, control of spills and leaks of hazardous waste. In addition, the plant has switched from halogen to LED lighting in most areas. There is an initiative to collect rainwater to be used in the production and cleaning processes of the plant to reduce the consumption of potable water.

Energy savings and renewable energy purchase in Italy

The Key Systems facility in Vittorio Veneto (Italy) introduced a mid-term project in the year 2014 to reduce overall energy consumption by refurbishing over 120 lighting systems with the latest generation LED systems. This has led to an energy savings of 60%. The facility is already certified to ISO 14001 but plans a ISO 50001 certification by the 2020/21 financial year.

The plant has also switched to renewable energy in the current financial year 2017/18, making it carbon neutral in terms of electricity consumption.

Movable Walls

The Movable Walls facility in Ocholt (Germany) has undergone an energy audit in compliance of the EU Energy Efficiency Directive according to DIN EN 16247-1 standards. The largest source of energy consumption was found to be lighting (25%) and the venting (22%) systems. Suggested improvements were therefore switching to an LED lighting system (amortization of 3 years) and upgrading the motors for the venting system (amortization of 2 years). These recommendations are currently being implemented. The plant in Malaysia has also invested in energy saving initiatives, namely in LED lighting systems, new air compressors and an air conditioner.

Throughout the company, evaluation of the management approach is mainly based on internal and external auditing during ISO 14001 implementation. Results from audits regarding permits are communicated with management. Stakeholder feedback is also used to evaluate the approach. For example, the plant in Wetzikon (Switzerland) has engaged stakeholders and management in a sustainability context analysis to define local materiality of sustainability topics.