Outro

19 min.

About this report

This is the dormakaba Holding AG (“dormakaba”) Sustainability Report 2018/19, which highlights our sustainability commitment, strategic approach and progress and is geared to all stakeholders. This is the company’s fourth sustainability report. This report has been prepared in accordance with the GRI Standards: Core option. The report covers the financial year 2018/19 from 1 July 2018 to 30 June 2019. dormakaba reports on an annual cycle and published the most recent report in September 2018. While external assurance of the Sustainability Report 2018/19 was not performed, the compensation of the Board of Directors and the Executive Committee, as well as the financial statements, were audited by an external auditor. No restatements of any information given in previous reports is necessary in the financial year 2018/19.

Significant changes to the organization and its supply chain

In the financial year 2018/19, dormakaba shareholders approved the proposed elections and re-elections to the Board of Directors (BoD), each for the proposed term of one year. Riet Cadonau was elected as a new Member and BoD Chair, and Jens Birgersson was elected as a new Member of the Board. The existing Members Rolf Dörig, Stephanie Brecht-Bergen, Daniel Daeniker, Karina Dubs-Kuenzle, Hans Gummert, John Heppner, Hans Hess and Christine Mankel were all re-elected to the BoD. Ulrich Graf, who was BoD Chair for 12 years, and Elton SK Chiu, who sat on the Board from year 2010, did not stand for re-election. As stated in the run-up to the election in October 2018, Riet Cadonau intends to continue in his role as CEO of dormakaba Group for two to a maximum of three years, in parallel with his role as BoD Chair. Together with the dual role of BoD Chair and CEO, the BoD established the role of Lead Independent Director (LID). This role is specifically designed to ensure the independence of the BoD from the BoD Chair and CEO and is equipped with competencies that are defined in the Organizational Regulations. Hans Hess was appointed to the newly created function of Lead Independent Director as well as the Vice Chairmanship.

Further, dormakaba reached an agreement in July 2018 on the sale of the 40% shareholding in ISEO to the Facchinetti family, who already own the remaining 60% of the company. Italy-based ISEO is a manufacturer of security products such as cylinders, master Key Systems business unit, locks and panic hardware, mainly for the European market. In December 2018, dormakaba also divested part of its US Door Hardware Service business in Segment AS AMER, since this business failed to meet expectations in terms of profitability.

Further, on 27 June 2019, dormakaba announced that it had signed an agreement to acquire Alvarado Manufacturing Co. Inc., based in Chino (CA/USA). Alvarado is a leading manufacturer of physical access solutions in North America. The transaction was concluded after the balance sheet date on 31 July 2019.

These businesses were not in scope in previous sustainability reports in terms of environmental or human resources figures.

Sites covered

Americas

Bogota, Colombia
Cambridge, Canada*
Detroit, USA
Deerfield Beach, USA
Dyersville, USA
Greenfield, USA*
Huntsville, USA
Indianapolis, USA
Lake Bluff, USA
Lexington, USA
Mesquite, USA
Montreal, Canada
Nogales, Mexico*
Phoenix, USA
Reamstown, USA
Rio de Janeiro, Brazil
Rocky Mount, USA
Sao Paulo, Brazil
Steeleville, USA
Whitby, Canada
Winston-Salem, USA

Europe, Middle East & Africa

Ayazaga-Sisli, Turkey*
Bad Salzuflen, Germany
Bonn, Germany*
Bühl, Germany
Brugge, Belgium*
Creteil Cedex, France*
Dodewaard, Netherlands*
Drammen, Norway*
Dreieich, Germany
Dubai, United Arab Emirates
Eggenburg, Austria
Ennepetal, Germany
Eskilstuna, Sweden*
Fougères, France
Hitchin, England
Johannesburg, South Africa
Konstancin-Jeziorna, Poland*
Le Mesnil-Saint-Denis, France*
Madrid, Spain*
Moscow, Russia
Nuneaton, England
Ocholt, Germany
Rümlang, Switzerland*
Seekirchen, Austria*
Sofia, Bulgaria
St. Gallen, Switzerland*
Tiverton, England
Velbert, Germany
Villingen-Schwenningen, Germany
Vittorio Veneto, Italy
Wetzikon, Switzerland
Wuppertal, Germany
Wuppertal-Ronsdorf, Germany*
Zusmarshausen, Germany

Asia Pacific

Banyo, Australia*
Chennai, India*
Coorparoo, Australia*
Hallam, Australia
Mumbai, India*
Melaka, Malaysia
Moorebank, Australia*
New Delhi, India
Regents Park, Australia*
Senai, Malaysia
Shanghai, China*
Shenzhen, China
Singapore
Suzhou, China
Taishan, China
Yantai, China
Yokohama, Japan*

* Newly reporting in 2018/19

The key performance indicators for environmental and human resources data in this report represents 79% of all dormakaba employees as at 30 June 2019, and which are located at these 73 sites in the reporting coverage.

Materiality process in detail

In the financial year 2017/18, dormakaba invested in a comprehensive materiality reassessment to be aligned to the GRI Standards. The latter have clarified the inside-out nature of the term “impacts” in their latest materiality definition.

Impact assessment

As part of the materiality process, we focused our efforts on a study-based impact assessment of sustainability topics along our value chain. The aim was to focus efforts where dormakaba can have the most impact on sustainable development. The analysis included dormakaba data from procurement, sales, production and human resources. This was overlaid with over 50 risk indicators from social hotspot databases, the World Bank and the Organisation for Economic Co-operation and Development (OECD).

The approach provided a structured qualitative analysis of environmental, social and economic indicators for the countries and industries dormakaba is involved in throughout the value chain.

dormakaba value chain

For ease of modelling, the company’s value chain was simplified into four steps in the sustainability impact assessment: 1.) Raw materials & sourced goods; 2.) Transportation; 3.) Own activities; and 4.) Distribution, use and end-of-life.

The basis for the long-list of 26 topics taken up into the assessment were:

The material aspects as defined in the financial years 2015/16 and 2016/17,
Topics based on the sustainability context of the industries in our value chain, and
Ongoing sustainability initiatives in the company.

Overall, the assessment process has not only helped to identify hotspots along the value chain, it has generated internal momentum and sharpened understanding of such impacts. This will serve as a basis for informed decision-making as the company manages its sustainability efforts going forward.

Stakeholder dialogue for materiality

The second dimension in the materiality reassessment was focused on the relevance of the sustainability topics for our stakeholders, both internal and external. The stakeholder dialogue which had taken place in the financial year 2015/16 was thorough and validated in a robust, multi-stage process. This included an online survey of around 100 employees including the Executive Committee, the Senior Management and employees who regularly deal with sustainability matters in their day-to-day work. Additionally, bilateral discussions with external representatives such as investors, customers, suppliers, partners, and local government were conducted. The results were therefore taken as a basis for this dimension in the current materiality reassessment. For further details, refer to the 2016/17 Sustainability Report.

Threshold-setting and validation

Reporting Frameworks

This report has been prepared in accordance with the GRI Standards: Core option.

dormakaba also reports to the Carbon Disclosure Project annually. Last year, dormakaba achieved a B score for the report.

dormakaba is a member of the UN Global Compact and publishes an annual “Communication on Progress” on the UN Global Compact website.

The results of the impact assessment and stakeholder dialogue were quantified in the dormakaba materiality matrix. The threshold for material topics was defined in a workshop with the international dormakaba Sustainability Working Group, including representatives from a range of global and segmental functions within the Supply Chain, Procurement, Human Resources, Compliance, Operations, Quality Control, Material Compliance and Communications departments. After intensive discussion on a third and final dimension – i.e. importance of the individual topics to the company strategy and values, as well as possible risks and opportunities – the materiality threshold was agreed.

All topics where dormakaba was shown to have a medium to high impact on sustainable development were taken up as material. These were topics where dormakaba either makes a positive contribution to sustainable development – for example through job creation or training – or topics whereby our own operations or those of business partners and suppliers could have a negative impact, for example, energy consumption and greenhouse gas emissions resulting from the manufacturing process. Areas of highest interest to stakeholders were also considered. Most topics with a medium to high relevance to our stakeholders were defined as material.

In a final step, the proposed material topics were discussed with the Executive Committee, which then approved them. In addition, the Executive Committee defined the topics of Customer Health and Safety and Customer Privacy as material, highlighting our company value “Customer First”.

Changes in material topics

Many topics which had been previously defined as material were reconfirmed through the reassessment process, which indicated that the company was on track in its sustainability management. In addition, six topics have been newly added as material, as seen in the below table. Some topics which had been previously defined as material were shown to be of less relevance to stakeholders or of less potential impact on sustainable development for the company. While these topics are less material in the sustainability strategy, our commitment to the principles related to forced labor and non-discrimination continues as a member of the UN Global Compact.

New material topics		Previously defined as material
Materials		Socioeconomic Compliance
Freedom of Association and Collective Bargaining		Forced Labor
Customer Privacy		Diversity and Equal Opportunity
Customer Health and Safety		Economic Performance
Supplier Environmental Assessment		Product and Service Labelling
Supplier Social Assessment

dormakaba interactive Materiality Matrix 2017 – 2021

The dormakaba Materiality Matrix below highlights the 17 material topics we plan to monitor and report on through the year 2021, while tracking any emerging global issues or risk for future consideration. By clicking on a topic of interest, a box will appear which defines the topic and the degree of potential impact along our value chain. For each topic, the topic boundaries are defined as per impacts along the dormakaba value chain. We prioritize these issues according to the degree of potential impact.

material topicnon-material topic

Occupational health and safety

Definition: Accidents, injuries and wellbeing of people involved in activities along the value chain; e.g. workers' exposure to risks and hazardous substances, (personal) protective equipment, health and safety training, health checks, case management, ergonomic work areas.