Introduction

Two years after the launch of our sustainability framework and the more than 30 ESG targets, we are proud to share what we have achieved and the focus of our future plans so we can provide more sustainable access solutions for every place that matters.

2022/23 in brief

• Scope 1+2 emissions were reduced by more than 10,000 tCO₂e since our baseline in FY 19/20
• On-site solar energy generation increased by 50%
• 240 sustainability-related product declarations and certifications are now available
• 156 high-risk suppliers were assessed in our Supplier Sustainability Engagement Program
• 1,261 unsafe observations were submitted across our operations in an effort to foster a more proactive safety culture
• More than 51,000 online and blended courses were completed by our employees, with additional face-to-face trainings also taking place
• We published Group Directives for Health & Safety and Sustainable Procurement, and started the development of a global Diversity, Equity & Inclusion (DE&I) recruitment policy.
• External acknowledgments: Gold medal from EcoVadis; CDP score A-; Prime Status from ISS ESG Corporate Rating; “Best Sustainability Program 2022” prize from EBH AG

Letter from the CEO

Dear Stakeholders,

In FY 22/23 we continued to deliver on our sustainability commitments with good results. But we also noted several trends impacting our sustainability efforts. The global energy landscape has shifted as a result of the war in Ukraine, which disrupted energy supplies across Europe, creating energy insecurity, rising costs, and a strong incentive for investment in renewable energy sources. In the short term, we have focused on energy–saving measures to reduce both costs and carbon emissions. Due to this and other energy–saving initiatives, I am happy to report that we have met our annual target to reduce our Scope 1+2 carbon emissions in line with a 1.5°C pathway.

At the same time, sustainability regulations are rapidly evolving across the globe. The EU Corporate Sustainability Reporting Directive, the German Supply Chain Due Diligence Act, and mandatory requirements to apply the recommendations of the Task Force on Climate–related Financial Disclosures (TCFD) in various jurisdictions are just some of the new policies and reporting requirements that are changing the way companies do business.

As a company, we are well–positioned to respond to these new requirements. Indeed, as a first measure to align with the TCFD, we are sharing our climate transition plan with the public for the first time in this Sustainability Report.

Our Sustainability Framework and the more than 30 ESG targets that we announced in November 2021 provide a solid foundation not only to be compliant, but also to maintain our leading sustainability position in the industry. We are proud that we keep receiving positive feedback across various external channels for our efforts. In this financial year, we were awarded a gold medal from the sustainability rating agency EcoVadis, and our CDP (Carbon Disclosure Project) score improved from B to A-, moving us into the Leadership band for the first time. We have also received Prime Status from the Institutional Shareholder Services (ISS) Environmental, Social, and Governance Corporate Rating. Furthermore, EBH AG, the largest European trade association for fittings, awarded us the “Best Sustainability Program 2022” prize.

We have continued our active role in multistakeholder discussions, such as on the platforms of the United Nations Global Compact (Swiss network), and raised awareness about human rights standards, and best practices. In collaboration with the University of St. Gallen, we published a study early this summer to help other companies improve their understanding and management of the human rights risks linked to their cobalt supply chains.

During this financial year, we launched ground–breaking product innovations in the field of sustainability, such as a sensor-controlled automatic door system that significantly contributes to improving the energy balance of the building, reducing operating costs, and ensuring greater safety during operation. Furthermore, our brand-new consultative tool, the Door Efficiency Calculator, helps customers find the most suitable automatic doors for their buildings in terms of energy efficiency, costs, and carbon footprint. These innovations were introduced at the BAU trade fair and were received positively by customers. Moreover, by successfully integrating a comprehensive list of sustainability criteria during the design phase of product developments, we have reached one of our targets for 2023: that all new product developments and optimizations are covered by our circularity approach.

In terms of our goal to assess all high-risk suppliers for their sustainability management via a third party, we improved from 18.7% in the prior reporting period to 23.7% in FY 22/23. Furthermore, we took important steps toward increasing the purchase of Forest Stewardship Council-certified paper, carton and wood for our packaging, completing a baseline assessment of all existing suppliers in this area. On the other hand, shifting our purchasing power toward metals with higher recycled content has proven challenging, as our supplier base seems to have little awareness of the topic. In the upcoming financial year, we will put special emphasis on this to achieve greater progress.

We have also adopted our Group Health & Safety Directive, which defines globally applicable health and safety management requirements for our employees, contractors, and visitors within our facilities, and for our field service technicians working primarily outside of our facilities. The Directive is the most important foundation of a positive safety culture, and enables all employees to report unsafe observations, which is a key element in proactively preventing injuries and accidents. We have already seen our employeesʼ increased engagement in this area. During FY 22/23, employees submitted 1,261 unsafe observations versus seven in the previous year.

Employee engagement and training programs are fundamental to promoting change and to making progress in all areas of our business. In FY 22/23, the average training hours per employee was 12.4, a marginal improvement versus the previous year. More than 51,300 online and blended courses were completed — that is almost 17,000 more than in the previous financial year. This includes the training of 1,207 employees who completed our Sustainability eLearning and the almost 2,000 managers and HR business partners, who completed our Diversity, Equity & Inclusion (DE&I) training on unconscious bias. For a diverse and inclusive workplace, besides fostering a deeper general understanding of DE&I within the organization, we also need to make sure that our recruitment processes are fair and free of discrimination and biases. Therefore, in FY 22/23 we began the development of a global DE&I recruitment policy.

These are just some of the key initiatives and results of FY 22/23. In this report you can read about additional achievements and case studies that demonstrate our commitment to sustainable development. For a more sustainable future and industry we will continue to improve our ever-evolving sustainability journey and address some of the most urgent global challenges of our time.

Sincerely yours,

Jim-Heng Lee

CEO dormakaba

About dormakaba

Our business

dormakaba Group (dormakaba) is one of the world’s top three companies providing smart, secure, and sustainable access solutions. Its comprehensive portfolio of strong brands offers customers a broad range of products, solutions, and services for secure access to premises, buildings, and rooms. With a clear portfolio segmentation, dormakaba concentrates on global core businesses such as Access Automation Solutions (door operators, sliding doors, and revolving doors), Access Control Solutions (connected devices and engineered solutions), Access Hardware Solutions (door closers, exit devices, and mechanical key systems), and Services. The company is also a market leader for Key Systems (key blanks, key cutting machines, and automotive solutions such as transponder keys and programmers), as well as Movable Walls including acoustic movable partitions and horizontal and vertical partitioning systems.

dormakaba has a long tradition of innovation and engineering expertise. It strives to be an innovation leader that anticipates and fulfills customer needs through continuous technological advancement, creating state-of-the-art solutions that add value for customers and end users alike.

dormakaba is active in around 130 countries and is present in all relevant markets through production sites, distribution and service offices, and collaboration with local partners.

As a publicly listed company, dormakaba’s fundamental goal is to increase its long-term enterprise value across industry cycles and economic fluctuations. It is assisted in this by a strong Pool Shareholder Group that ensures the long-term orientation of its strategy. The company aims to create shareholder value while also furthering the interests of other stakeholders: most importantly its customers, as well as technology and distribution partners, employees, and associates.

dormakabaʼs corporate strategy – Shape4Growth (S4G) – is about transforming the company, shaping it to its full potential, and accelerating profitable growth. It does so by building on five strategic pillars:

• Accelerating profitable growth: To strengthen commercial and innovation capabilities. The regional layers were dissolved: all Access Solutions business, starting 1 July 2023, is now the responsibility of the Chief Commercial Officer (CCO), with the company’s seven key markets (USA/Canada, Germany, Australia, Switzerland, UK/Ireland, China, and India) reporting directly to the CCO.
• Focus on customer centricity: The customer is at the heart of everything we do. As a result, dormakaba invests in tailoring services to the needs of our customers and specification capabilities, as well as reducing complexity in the operating model. Furthermore, the company puts sustainability at the center of its business model: Recognizing that sustainable operations are key to continued growth, Shape4Growth sets out an industry-leading sustainability framework with ambitious targets across three strategic areas: Planet, People, and Partnerships.
• Improve operational excellence and gain scale: dormakaba strives to continuously improve efficiency and effectiveness across the entire value chain. To support that, the company is driving a more global management of functions (e.g. HR, Finance, Operations) and driving economies of scale by bundling our activities across markets and functions. Furthermore, dormakaba is harmonizing its processes driven by global operating standards, optimized operating procedures, and investments in machines and technology to enable people and processes, as well as quality and efficiency.
• Realize effective capital deployment: Innovation is a key priority for dormakaba and the foundation that secures the company’s future success by clearly differentiating ourselves from competition and delivering on true customer needs. dormakaba will pursue innovation with an increased focus on technologies, products, and markets that offer the highest growth and profit potential. In addition, we continue to diligently manage our portfolio of businesses, products, and locations to reduce complexity, gain scale, and enable attractive returns on capital employed.
• Customer-centric and high-performance culture: dormakaba plays to win – fostering a culture that focuses on the customer and on high performance. We act as one global dormakaba team with effective, cross-functional collaboration enabled by transparency and accountability, and supported by state-of-the-art processes and technology.

Operating model

The Access Solutions (AS) business is divided into three customer-centric regional sales organizations – Americas, Asia Pacific, and Europe & Africa. These three Regions are supported by Global Functions to secure efficiencies of scale and to capture business synergies in product development, product management, and operations. To enable a strong customer focus and sales generation, the three Regions are built around:

• Project and solutions sales, focusing on architects, design engineers, and influencers to increase specification capabilities
• Indirect sales, focusing on distributors, general contractors, and project managers to enhance a dedicated offering for key verticals and to push cross-selling
• Services, focusing on facility managers, building operators, or installers to support services growth as part of the company’s global core business

Key & Wall Solutions completes the organizational setup as a standalone global segment.

A detailed description of the structure can be found in the Notes to the consolidated financial statements for financial year 2022/23.

Our value chain

Our employees¹

Employees by region

Employees by contract type

Employees by employment type

The key performance indicators for the above human resources data and the fluctuation figures available in the Fair Employment chapter and the ESG Performance Table are based on 100% of dormakaba Group employees as at 30 June 2023. The total workforce in this scope consisted of 15,629 employees, based on headcount. While the majority of our employees work full-time and on the basis of permanent contracts, 6% are engaged on a part-time basis. 44.1% of the employees in this scope are covered by collective bargaining agreements. In addition, dormakaba engaged 316 apprentices, trainees, and interns, and employed 1,836 contract workers at the sites in scope.

The other social and all environmental key performance indicators found in this report represent 95% of dormakaba employees as at 30 June 2023, which are located at the 112 sites in the reporting coverage (see Outro for a map of included sites).