Outro
About this report
This is the dormakaba Holding AG (“dormakaba”) Sustainability Report 2022/23, which highlights our sustainability commitment, strategic approach, and progress, and is geared towards all stakeholders. This is the company’s eighth sustainability report. This report has been prepared in accordance with the GRI Standards. The report covers the financial year 2022/23, from 1 July 2022 to 30 June 2023, and it was published on 31 August, 2023. dormakaba reports on an annual cycle and published the previous report in August 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. Select KPIs from the Sustainability Report have also been assured.
Due to improved control mechanisms, we have discovered that adherence to the Group requirements regarding energy management systems was not fulfilled at 17 manufacturing sites that had previously reported conformance to maintaining an energy management system. Thus a restatement is needed. In FY 21/22, only 35% of all manufacturing sites had an energy management system in place, as opposed to the reported 67%. Support and training will be provided to the 17 sites in order for them to close the discovered gaps. Additionally, improved data and parameters for energy use after installation for two products has led to a need to restate figures regarding Scope 3 Category 11: Use of Sold Products. The restated figure is 229,790 tCO2e as opposed to the previously reported figure of 263,700 tCO2e.
Significant changes to the organization and its supply chain
The Annual General Meeting in October 2022 approved the appointment of Svein Richard Brandtzæg, Kenneth Lochiatto, and Michael Regelski as new independent members of the Board of Directors. As a further move in the renewal of the Board of Directors, Riet Cadonau stepped down as Chairman and member of the Board on 30 April 2023. Svein Richard Brandtzæg, previously Lead Independent Director and Vice-Chair of the Board, has taken over as Chairman, with Thomas Aebischer, Chair of the Audit Committee, assuming the role of Vice-Chair.
The Board of Directors appointed Christina Johansson as Chief Financial Officer and member of the Executive Committee of dormakaba Group effective 1 December 2022.
Additionally, a simplification of the organizational structure to support the Shape4Growth transformation was announced in March 2023. dormakaba will introduce two new roles, Chief Commercial Officer (CCO), and Chief Innovation Officer (CIO), to strengthen its commercial and innovation capabilities. The current regional layer will be dissolved: all Access Solutions business will be under the lead of the Chief Commercial Officer, with the company’s seven key markets (USA/Canada, Germany, Australia, Switzerland, UK/Ireland, China, and India) reporting directly to the CCO. The new role of Chief Innovation Officer will lead all global engineering capabilities and be responsible for dormakaba’s innovation strategy, including the platform and connectivity initiatives through the EntriWorX ecosystem. All organizational changes took effect as of 1 July 2023.
These organizational changes mean that starting 1 July 2023, dormakaba’s Executive Committee reduced from nine to six members, enabling more efficient, focused leadership with enhanced agility and speed of decision-making. Alwin Berninger, Chief Marketing & Products Officer, and Mathias Mörtl, Chief Operations Officer, left their roles at the end of March 2023.
Reporting coverage and processes
The data presented covers 95% of dormakaba employees in 112 locations worldwide, as represented by the blue dots on the map below. 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 for the 6th, 10th, and 12th month of the financial year. Materials use is reported at the end of the financial year. Human Resources data pertaining to GRI 100, such as fluctuation and workforce composition, is gathered through the Group-wide human resources information platform SAP SuccessFactors. Figures on corruption cases, collective bargaining, and working 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 the end of the financial year by an external consultant.
The Sustainability Report review process has several phases, including the review of the dedicated chapters (both qualitative and quantitative content) and relevant parts of the ESG Performance Table and the Strategic Targets table by topic owners in the Executive Committee and direct reports of the CEO. Furthermore, the CFO and the CEO review abstracts of the chapters, the ESG Performance Table, and the Strategic Targets table.
Sites covered
Transparency and compliance
We are committed to being a socially responsible corporate citizen and to upholding the principles of international conventions and laws and internal rules and regulations. We also expect our suppliers and business partners to adhere to similar standards and rules. We emphasize integrity, governance, and responsible business practices, and regard fair competition as the soundest basis for our growth and corporate success. As a member of the UN Global Compact, we are committed not only to avoiding bribery, extortion, and other forms of corruption, but to developing related policies and specific programs, both internally and within our supply chain.
We set a clear tone from the top regarding compliance by providing guiding documents and training to all employees. Principles of antitrust regulations, anti-corruption, and ethical business dealings, for example, are part of our Code of Conduct (CoC). The dormakaba CoC is binding for all our employees. It is each employee’s responsibility to comply with laws and internal regulations as per the CoC. The respective manager is responsible for ensuring that employees know the regulations and understand expectations. In the course of the recruitment and onboarding process, new employees receive and acknowledge the dormakaba CoC. Global Compliance publishes new directives and supports internal communication of any related publications and topics. Functional owners of the directives must ensure appropriate communication and training for the respective addressees. The Group Anti-Corruption and Bribery Directive and the Group Antitrust Directive provide our employees with guidance to ensure compliance with relevant laws and to decrease any related risks.
Reporting misconduct and grievances
The CoC outlines the standard procedure for reporting grievances and/or breaches of law. The dormakaba whistleblowing tool is available globally 24/7 and is offered in nine languages. Whistleblowers using the online tool receive a first response within two to three days and are provided with regular updates on their case, if a mailbox allowing anonymous communication has been set up. We strive to create a culture where employees speak up and are encouraged to address concerns as outlined in the abovementioned process. On matters of transparency, the respective manager is encouraged to contact Global Compliance directly. Global Compliance carefully considers all notifications received and, depending on the matter, creates an action plan or sets up a project to solve any potential issues. Remediation progress is tracked by Global Compliance and may include direct legal advice, the involvement of external experts, internal investigations, or the development of workshops or customized training. If necessary, Global Legal and Global Compliance will involve the CEO and/or other relevant members of the Executive Committee. Furthermore, Global Compliance regularly reports on compliance cases on an aggregated level to the Executive Committee.
Information security
Safeguarding our customers’ rights to data protection and privacy includes obtaining data by lawful and fair means, protecting the personal data of customers using adequate information security safeguards, and using customer data responsibly. We have an Information Security Management System (ISMS) in place, which is based on the ISO/IEC 27001:2022 standard. The scope of the certification covers Group IT, dormakaba digital in Europe and the USA, and digital-based product development in Europe.
Materiality process in detail
In FY 20/21, dormakaba carried out a comprehensive materiality reassessment as part of the development of a new sustainability strategy for 2021–2027. We assess any emerging global issues or risks for future consideration on an annual basis.
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
The basis for the long list of 27 topics incorporate 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 has also generated internal momentum and sharpened understanding of these impacts. It serves 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 assessment 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 members of the Group Sustainability Council and external representatives such as investors, banks, customers, suppliers, partners, and local government were conducted.
Reporting Frameworks
This report has been prepared in accordance with the GRI Standards.
dormakaba also reports to the Carbon Disclosure Project annually. Last year, dormakaba achieved an A- 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.
Threshold-setting and validation
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 due to its business relevance (double materiality).
Changes in material topics
Many topics that had been previously defined as material were reconfirmed through the assessment process in FY 20/21. In addition, two new topics were added as material, as seen in the table below. Some topics that had been previously defined as material were shown to be less relevant to stakeholders or to have reduced 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. Our commitment to the principles related to anti-corruption in particular continues as we are a member of the UN Global Compact.
|
New material topics |
|
Previously defined as material |
|
Circular Economy |
|
Anti-competitive Behavior |
|
Diversity |
|
Anti-corruption |
|
|
|
Freedom of Association & Collective Bargaining |
|
|
|
Water |
|
|
|
Waste |
dormakaba interactive Materiality Matrix 2021–2027
The dormakaba Materiality Matrix below highlights the material topics we have set strategic targets for, 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.
Circular economy
Definition: enhancement of a 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 repair programs; development of product leasing models as an alternative to common buying models; improvement of material efficiency; use of recyclable, biologically degradable, or bio-based plastics and packaging; increased amount of 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
Diversity
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 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
Emissions
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 risk to human health.
Potential Impact per Value Chain Step
Employment
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
Energy
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
Environmental Compliance
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
Human Rights
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 freedom of religion, the right to life, protection from discrimination, freedom from slavery and forced labor.
Potential Impact per Value Chain Step
Materials
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 and Safety
Definition: accidents, injuries, and well-being 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 workspaces.
Potential Impact per Value Chain Step
Supplier Sustainability Development
Definition: reduction of negative environmental and social impacts in the supply chain and of business partners, e.g. supplier screening, due diligence processes, prevention, mitigation, and remediation of negative impacts. Requirement of social standards for suppliers and business partners, e.g. 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
Contact
dormakaba Holding AG
Hofwiesenstrasse 24
8153 Rümlang, Switzerland
Imprint
Project support: Serena Alonso, Ann Fiona Blau, Nicole Claase, Dora Healey, Kristin Jarrett, Lea Rammelmann, Anita Sequeira, Christina Siemsen, Karola Steputat, Malin Fabienne Zuehlke
Project management: Stephanie Ossenbach, Marita Burgard, Renata Jendrolovits, Sandi Ruiz
Data quality assurance: Schnabl + Partners, AG
Editor: dormakaba Holding AG
www.dormakabagroup.com
Design: NeidhartSchön, Zurich
Copyrights: © dormakaba Holding AG, 2023