Outro

19 min.

About this report

This is the dormakaba Holding AG (“dormakaba”) Sustainability Report 2020/21, which highlights our sustainability commitment, strategic approach, and progress and is geared to all stakeholders. This is the company’s sixth sustainability report. This report has been prepared in accordance with the GRI Standards: Core option. The report covers the financial year 2020/21, from 1 July 2020 to 30 June 2021. dormakaba reports on an annual cycle and published the previous report in September 2020. While external assurance of the Sustainability Report 2020/21 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 2019/20 is necessary. The restated figure is 74,770 tCO₂e for combined Scope 1 and 2 emissions (market-based approach), as opposed to the previously reported figure of 72,992 tCO₂e. Scope 1 increased to 31,162 tCO₂e due to improvements in data collection based on fleet management software, and Scope 2 (market-based) decreased to 43,608 due to validated certificates of renewable electricity purchase.

Significant changes to the organization and its supply chain

Effective 1 April, Sabrina Soussan assumed executive responsibility as CEO of the dormakaba Group. She joined dormakaba from Siemens Mobility, a leading supplier of transport solutions, where she had been CO-CEO since 2017. Previously, she held several leadership positions in Siemens’ mobility, building technologies, and automotive businesses over the past 20 years. Her predecessor Riet Cadonau remained in his role as Chairman of the Board, which is subject to annual re-election.

Further, dormakaba has agreed a new five-year CHF 525 million syndicated loan with a consortium of banks coordinated by Zürcher Kantonalbank during the reporting year. In addition to the standard increase and extension options as well as to transitional provisions concerning the SARON interest rate, the terms for the first time include incentives for the achievement of ambitious sustainability performance objectives. The loan will be used to create further financial flexibility and to refinance the existing syndicated credit facility of CHF 500 million, which expired on 30 March 2021.

The new syndicated loan has been provided by a banking consortium including BNP, Credit Suisse, Deutsche Bank, HSBC, SEB, UBS, Unicredit (Sustainability Coordinator), and Zürcher Kantonalbank.

Finally, dormakaba has divested its project installation business in Norway. The purchaser of the business, Låssenteret, is a well-established Norwegian security installation group. With this transaction, Låssenteret and dormakaba will further strengthen their existing commercial relationship.

Reporting coverage and processes

The data presented covers 95% of dormakaba employees in 102 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 that on 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, and training hours are gathered on an annual basis by HR for all reporting units in scope via an internal Business Intelligence reporting platform. Injury rates, injury and accident types, corrective actions, and root cause analysis data is collected in a web-based Health and Safety tool which was rolled out on 1 July 2020 across the organization for all sites in the scope of this report. Data quality controls and consolidation for all data are provided after financial-year end by an external consultant.

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. This assessment is currently being renewed as part of the development of a new sustainability strategy for 2021–2027.

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.