About this report
This is the dormakaba Holding AG (“dormakaba”) Sustainability Report 2021/22, which highlights our sustainability commitment, strategic approach, and progress, and is geared towards all stakeholders. This is the company’s seventh sustainability report. This report has been prepared in accordance with the GRI Standards: Core option. The report covers the financial year 2021/22, from 1 July 2021 to 30 June 2022. dormakaba reports on an annual cycle and published the previous report in September 2021. External assurance of the full Sustainability Report 2021/22 was not performed. External assurance of a limited scope of key performance indicators including Scope 1+2 carbon emissions is currently ongoing, and the assurance letter will be published on the dormakaba website in October 2022. The compensation of the Board of Directors and the Executive Committee, as well as the financial statements found in the Annual Report, 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 FY 2020/21 is necessary. The restated figure is 70,311 tCO2e for combined Scope 1+2 emissions (market-based approach), as opposed to the previously reported figure of 70,314 tCO2e. Scope 1 decreased by 3 tCO2e due to improvements in accounting for biofuels mixes. Additionally, the Scope 3 emissions pertaining to Category 11 Use of Sold Products need to be restated due to improvements in precision for country-based sales volumes. The restated emissions are 272,900 tCO2e.
Significant changes to the organization and its supply chain
In November 2021, the new corporate growth strategy, Shape4Growth, was presented to the public and its implementation began at the start of January 2022. Shape4Growth will accelerate profitable growth through a focus on core businesses, core markets, and customer-centricity, enabled by enhancements in operational excellence and scale, capital deployment, and culture. This focus will be further anchored in the company through a change in the operating model to three customer-centric regions and sales organizations for Access Solutions – Americas, Asia-Pacific and Europe & Africa – which will be supported by global functions to capture synergies. The expected benefits include significant improvements in customer centricity, in scale, and operational efficiency, as well as in transparency and accountability.
Effective as of 1 January 2022, Jim-Heng Lee assumed the role of CEO of dormakaba. The Singaporean national joined dormakaba in 2014 and had been a member of the Executive Committee since that time. During FY 2021/22, the following changes within the Executive Committee have also been made: Mathias Mörtl joined dormakaba on 1 December 2021 as COO. Andy Jones was appointed President Asia Pacific as of 12 January 2022. Bernd Brinker stepped down from his role as CFO and was succeeded by Kaspar W. Kelterborn as interim CFO as of 1 April 2022.
dormakaba has had a number of acquisitions in FY 2021/22. Fermatic Group (Fermatic), a provider of services, repair and installation of automatic doors, automatic gates, and automatic garage doors, was acquired. Fermatic primarily operates in the multi-housing market in the North-West of France, and also serves other verticals such as Offices, Retail and Public Buildings. dormakaba has also acquired the Australian Reliance Doors and Best Doors Australia Groups (RELBDA), a leading Australian provider of residential garage doors, automatic openers, industrial overhead doors, and related services.
dormakaba has divested its interior glass business (IGS) including the Dorma-Glas GmbH manufacturing site in Bad Salzuflen (Germany), and selected sales units in Europe. dormakaba has also divested its Mesker hollow metal doors business to the key principals of Trimco and Metal Manufacturing Industries (MMI).
Reporting coverage and processes
The data presented covers 95% of dormakaba employees in 100 locations worldwide, as represented by the blue dots on 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 everything except materials use, internal reporting deadlines are set at the 6th, 10th, and 12th 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 within the scope of this report. Data quality controls and consolidation for all data are provided after financial-year end by an external consultant.
Materiality process in detail
In the FY 2020/21, dormakaba carried out a comprehensive materiality reassessment as part of the development of a new sustainability strategy for 2021–2027.
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
The basis for the long-list of 27 topics taken up into the assessment were:
- the material and non-material topics under consideration in the 2017/18 materiality assessment, updated based on recent risk assessments and due diligence processes (particularly on human rights);
- Circular Economy, as an additional topic based on the sustainability context of the industries in our value chain: and
- the topic of Responsible Tax Practices.
Overall, the assessment process has not only helped to identify hotspots along the value chain, it also has generated internal momentum and sharpened understanding of these impacts. It 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 focused on the relevance of sustainability topics for our stakeholders, both internal and external. The stakeholder dialogue was thorough and validated in a robust, multi-stage process. This included an online survey of over 2,000 employees around the world, around 100 senior managers, including members of the Executive Committee, and a separate survey for the members of the Sustainability Working Group and other employees who regularly deal with sustainability matters in their day-to-day work. Additionally, bilateral discussions with the members of the Group Sustainability Council and with external representatives such as investors, banks, customers, suppliers, partners, and local government were conducted.
Threshold-setting and validation
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. A recommendation to the Group Sustainability Council on the proposed threshold for material topics was developed in a workshop with the Sustainability Working Group. Stakeholders included representatives from a range of global and regional functions within the Procurement, Human Resources, Compliance, Operations, EHS, and Product Development departments.
The majority of 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. Most topics with a medium to high relevance to our stakeholders were defined as material as well.
In a final step, the proposed material topics were discussed with the Group Sustainability Council and the Executive Committee, which then approved them. In addition, the Executive Committee defined the topic of Diversity as material.
Changes in material topics
Many topics which had been previously defined as material were reconfirmed through the reassessment process. In addition, two new topics were newly added as material, as seen in the table below. Some topics that had been previously defined as material were shown to be of less relevance to stakeholders or to have less potential impact on sustainable development by the company. While these topics are less material within the sustainability framework and targets, we have elected to continue reporting key performance indicators on the topics of anti-corruption, water, and waste in our ESG Performance Table. Particulary our commitment to the principles related to anti-corruption continues as a member of the UN Global Compact.
New material topics
Previously defined as material
Freedom of Association & Collective Bargaining
dormakaba interactive Materiality Matrix 2021–2027
The dormakaba Materiality Matrix below highlights the material topics we have set strategic targets to, and will monitor and report on through to 2027, while tracking any emerging global issues or risks for future consideration. For each topic, the topic boundaries are defined based on the potential impacts along the dormakaba value chain, and prioritized accordingly. Click on each material topic to learn more.
Definition: Enhancement of circular economy approach in operations and product design; e.g. improvement of recyclability, retrofitability and reparability of products; modular design with re-usable and/or replaceable parts; take-back and repairing programs; development of product leasing models as alternative to common buying models; improvement of material efficiency; use of recyclable, biologically degradable or bio based plastics and packaging; increased recycled goods purchased.Potential Impact per Value Chain Step
Customer health and safety
Definition: Assurance of the health and safety of customers, consumers and other users.Potential Impact per Value Chain Step
Definition: Enhancement of diversity, equal opportunity and prevention of discrimination along the value chain; e.g. women in leadership positions; integration of people with disabilities, different cultural backgrounds and nationalities, adaptation to an ageing workforce; equal pay; proactive diversity management; prevention of harassment and non-discrimination on any grounds such as gender, sexual orientation, age, ethnic origin, race, culture, religion, political opinion, or social origin.Potential Impact per Value Chain Step
Definition: Greenhouse gas (GHG) emissions and air pollutants in the supply chain, logistics and operations; e.g. CO2, NOx, SOx, volatile organic compounds (VOCs), fine dust emissions, ozone-depleting substances, reduction of the risks of related human health impacts.Potential Impact per Value Chain Step
Definition: Employment and job creation by the organization and along the value chain; e.g. employment practices, wages, working conditions, hiring and retention of employees, social dialogue, employee-management relations.Potential Impact per Value Chain Step
Definition: Energy consumption and use of renewable energy in the supply chain, logistics, operations and products, e.g. energy efficiency, use of local and renewable energy, energy efficiency of products.Potential Impact per Value Chain Step
Definition: Compliance with environmental laws and regulations along the value chain (e.g. reduction of financial risks through fines and negative impacts on reputation, avoidance of clean-up obligations or other costly environmental liabilities).Potential Impact per Value Chain Step
Definition: Respecting human rights along the value chain; e.g. obligation and training of employees and business partners to adhere to human rights, provision of grievance mechanisms, human rights due diligence. Human rights include but are not limited to e.g. freedom of religion, right to life, protection from discrimination, freedom from slavery and forced labor.Potential Impact per Value Chain Step
Definition: Efficient use of materials in production and in the supply chain, e.g. optimization of the production process, responsible sourcing of conflict minerals and wood, ensuring material traceability, responsible use, recycling and reuse of materials and product recovery, responsible use of scarce materials.Potential Impact per Value Chain Step
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.Potential Impact per Value Chain Step
Supplier sustainability assessment
Definition: Reduction of negative environmental and social impacts in the supply chain and of business partners, i.e. supplier screening, due diligence processes, prevention, mitigation and remediation of negative impacts. Requirement of social standards for suppliers and business partners, i.e. code of conduct, certifications, audits in the supply chain. Sustainable sourcing of raw materials, e.g. impacts of extraction (including conflict minerals), procurement from politically unstable regions.Potential Impact per Value Chain Step
Training and education
Definition: Enhancement of employee and talent development along the value chain; e.g. vocational training, development planning, performance evaluation, promotion of skills, employee training and education, promotion of lifelong learning opportunities, facilitation of continued employability.Potential Impact per Value Chain Step
dormakaba Holding AG
8153 Rümlang, Switzerland
Project support: Renata Jendrolovits, Specialist Corporate Sustainability
Project management: Stephanie Ossenbach, Group Sustainability Officer
Editor: dormakaba Holding AG
Data support and validation: Sulytics, Zürich
Realization: NeidhartSchön, Zürich
© Natalia Gianinazzi, Supplier Sustainable Development
© Link Arkitekter, Ratio Arkitekter, Bølgeblikk, Helse Sør-Øst RHF, Customer Health & Safety
© Thomas Rodriguez, Diversity&Inclusion
© Chao Zhou, Occupational Health & Safety; Diversity&Inclusion
Copyrights: © dormakaba Holding AG, 2022