Outro

19 min.

About this report

This is the dormakaba Holding AG (“dormakaba”) Sustainability Report 2019/20, which highlights our sustainability commitment, strategic approach and progress and is geared to all stakeholders. This is the company’s fifth sustainability report. This report has been prepared in accordance with the GRI Standards: Core option. The report covers the financial year 2019/20 from 1 July 2019 to 30 June 2020. dormakaba reports on an annual cycle and published the previous report in September 2019. While external assurance of the Sustainability Report 2019/20 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. Due to improvements in data quality and validation processes, a restatement of the previously reported carbon footprint data from the financial year 2017/18 is necessary. The restated figure is 70,733 tCO₂e for combined Scope 1 and 2 emissions (market-based approach), as opposed to the previously reported figure of 75,541 tCO₂e.

Significant changes to the organization and its supply chain

In the financial year 2019/20, dormakaba appointed Steve Bewick as Chief Operating Officer of the AS EMEA segment and thus a Member of the Executive Committee as of 1 January 2020. Steve Bewick (53) was previously Senior Vice President UK, Ireland and Benelux and a member of the Segment Management Team of AS EMEA.

The company announced in March 2020 that both Michael Kincaid (58), Chief Operating Officer AS AMER, and Jörg Lichtenberg (55), Chief Manufacturing Officer, were to step down from their respective positions and as members of the Executive Committee as at 30 June 2020 at the latest. As successor of Michael Kincaid, the Board of Directors has appointed Alex Housten (39). He joined dormakaba as of 1 April 2020 and after an onboarding period will assume responsibility as COO AS AMER and joining the Executive Committee on 1 July 2020.

With Jörg Lichtenberg leaving the company, it was decided to discontinue the Chief Manufacturing Officer role. Over four years after the merger, the company’s new operating model is well established which allows Management to reassign the Chief Manufacturing Officer’s respective responsibilities within the organization.

Further, dormakaba completed the acquisition of Alvarado Manufacturing Co. Inc., based in Chino (CA/USA). Alvarado is a leading manufacturer of physical access solutions in North America such as speed gates, turnstiles and other admission devices with a focus on office, commercial and government buildings, as well as sports, leisure and entertainment facilities. This business was not in scope in this or previous sustainability reports in terms of environmental or human resources figures.

Event after the balance sheet date

On 9 July 2020 dormakaba has announced that the Board of Directors has appointed Sabrina Soussan as the new CEO of dormakaba effective 1 April 2021. Sabrina Soussan has been Co-CEO of Siemens Mobility, a leading supplier of transport solutions, since 2017, and held several leadership positions in Siemens’ mobility, building technologies and automotive businesses over the past 20 years. Riet Cadonau, CEO of dormakaba Group since 2011, will hand over his CEO responsibilities at the end of March 2021 and focus on his role as Chairman, following his re-election at the upcoming Annual General Meeting.

Reporting coverage and processes

The data presented covers 95% of dormakaba employees in 103 locations worldwide, as represented by the blue dots in the below map. These are locations with more than 20 employees and include all manufacturing facilities. Environmental data including energy, water, waste and materials consumption is collected via an internal Business Intelligence reporting platform. Each location has a dedicated reporter. For all except materials use, internal reporting deadlines are set at the 6^th, 10^th and 12^th month of the financial year. Materials use is reported at financial-year end. Human Resources data pertaining to GRI 100 such as fluctuation and workforce composition is gathered through the Group-wide Human Resources Information Platform of SAP SuccessFactors. Figures on corruption cases, collective bargaining, health and safety and training hours are gathered on an annual basis by HR for all reporting units in scope via Excel spreadsheets. Data quality controls and consolidation for all data are provided after financial-year end by an external consultant. This report was reviewed and approved by the Chief Executive Officer and Chief Finanial Officer.

Sites covered

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 & 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.