Strategy & Approach

We are committed to championing sustainability in everything we do — from producing more sustainable solutions to helping our customers reduce their environmental footprint, to being a fair and responsible employer and neighbor.

dormakaba strives to promote sustainable development along the value chain as part of our economic, environmental, and social responsibility toward current and future generations. We seek open and transparent dialogue with stakeholders to define strategies and actions based on clear goals and continuous improvements. We adhere to the precautionary principle as the foundation of sustainability. Negative impacts on the environment and health should be avoided in advance to the greatest extent possible by all employees in all business activities. This approach is set out in our Code of Conduct, which outlines our values, principles, standards, and norms of behavior.

At dormakaba we welcome the EU’s and local governments’ ambition to foster more responsibility within the business sector. We take our obligations to comply with the increasing number of sustainability laws and regulations seriously, including the German Supply Chain Act, the Swiss Conflict Minerals and Child Labor Due Diligence Legislation, the EU Taxonomy, and the EU Corporate Sustainability Reporting Directive.

Sustainability is embedded in our strategy and vision

As part of our company strategy Shape4Growth, dormakaba has committed to an industry-leading framework for sustainability with ambitious ESG targets. We share the belief that sustainability is core to the future of our industry, of the building industry in general, and thus to our business model. With Shape4Growth, we have further integrated sustainability into our solutions, operations, and processes to better meet the expectations of our customers. We must do our part to reduce the carbon footprint of the buildings we supply, and we aim to do the same in our internal operations.

Materiality

Our material topics were defined in the course of a comprehensive materiality reassessment in FY 20/21 and are valid for the years 2021–2027. We were able to identify ten topics that are the most relevant for our stakeholders and for those areas, where we have the biggest impact on sustainable development. Full details on the materiality process can be found in the Outro.

Our Sustainability Framework 2021–2027

Following the reassessment of our material topics, we have developed a sustainability framework in line with our most material issues, based on three Pillars: People, Planet, and Partnerships. Within each Pillar, we have set clear sustainability targets that determine our sustainability-related efforts for the period 2021–2027.

We are committed to shaping a more sustainable industry and future. Sustainability is embedded at the core of our strategy and vision and is present in everything we do.

People
We empower our people so that they can unlock their full potential

Aim

We create a fair, inclusive, and safe culture that enables our employees to thrive. We provide a workplace where they can continuously grow, openly contribute with their ideas, and feel proud of their achievements.

Material topics

• Fair Employment
• Training & Education
• Diversity, Equity & Inclusion
• Occupational Health & Safety

Planet
We open the doors wide to a low-carbon and circular economy

Aim

We develop innovative and resource-efficient solutions for the circular economy and do our part to ensure a climate-resilient future. We offer durable and energy-efficient products that help our customers achieve their own sustainability goals.

Material topics

• Energy & Emissions
• Circular Economy & Materials
• Environmental Compliance

Partnerships
We collaborate to promote sustainable development beyond our own doors

Aim

We lead by example and engage with our partners to drive more eco-friendly practices and support the protection of human rights. Through our secure access solutions, we also contribute to peopleʼs health and safety. We work with partners to raise awareness of the safe operating practices of our products.

Material topics

• Supplier Sustainable Development
• Human Rights
• Customer Health & Safety

Strategic targets

In line with this strategic approach, dormakaba has committed to working toward 31 sustainability goals during the current strategic period. In the third year of implementation, we have made good progress on our targets. We are on track with our Scope 1 and 2 CO₂ reduction targets and have substantially increased the share of self-generated renewable electricity. We have also made strides in our employee training, DEI, injury rate, and zero waste to landfill targets. In the area of supplier sustainable development, we have seen continued progress in assessment rates but we have not managed to advance with our decarbonization efforts. We are also behind our plans in shifting the supply chain away from plastic packaging. These areas will be a particular focus in FY 24/25. Below is a summary of the status of the targets as at 30 June 2024. You can read about these achievements and challenges in more detail in the relevant chapters of this report.

People

Material Topic

Target

Target Year

Base­line FY 20/21

Perfor­mance FY 23/24

Notes

Status

Fair Employ­ment

Maintain our employee engagement score at or above the IBM Global Norm (73)

2027

70% 1)

71%

Based on the latest results of the dormakaba dialogue in FY 22/23. The next dormakaba dialogue is planned for FY 24/25.

p3

Training & Education

Increase average training hours to 20 hours per employee per year

2027

13 hrs/FTE

14.3 hrs/FTE

We have improved by 2 hrs/FTE versus the last financial year’s performance, when we had dipped below the baseline. We are satisfied that we have turned the trend around on this target.

p2

Diversity, Equity & Inclusion

1 in 3 managers are women

2027

19%

22%

We have continued our trend of consistent improvement of 1 pp. per annum.

p2

25% women in succession planning for senior management positions

2027

14%

28%

Target has been achieved early. However, we will continue to monitor to ensure the target threshold is maintained thoughout the strategic period.

p10

Occupa­tional Health & Safety

Decrease the recordable work-related injury rate by 33%

2027

1.4

1.19

We have seen a significant drop in the number of recordable work-related injuries (164 vs. 210 in the last financial year).

p4

1 Baseline FY 19/20 in line with the dormakaba dialogue cycle

Planet

Material Topic

Target

Target Year

Base­line FY 20/21

Perfor­mance FY 23/24

Notes

Status

Energy & Emissions

Reduce operational emissions (Scope 1+2) by 42% in line with a 1.5°C future

2030

74,770 tCO 2 e 1)

62,269 tCO 2 e

We are well on track and have reduced emissions by 17% versus the baseline.

p4

Reduce value chain emissions (Scope 3) from purchased goods and services and the use of sold products by 25%

2030

734,850 tCO 2 e 1)

838,248 tCO 2 e

For the second year in a row, we have seen reductions in emissions stemming from the use of sold products. However, emissions from purchased goods and services have continued to increase. Currently, data is collected on a material type basis, rather than disaggregating to an individual supplier level. This means we have little leverage to encourage suppliers to decarbonize. To address this, in FY 24/25 we will collect primary CO 2 data from our most carbon-intensive suppliers and collaborate with them on their reduction strategies.

p0

Become carbon neutral in our operations

2030

74,770 tCO 2 e 1)

62,269 tCO 2 e

Carbon emissions from heating fuels, vehicle fuels, and purchased electricity are to be reduced by our own actions in line with our 1.5°C commitment, and residual emissions will be offset through Gold Standard-certified projects starting in 2030 only.

p4

Achieve net zero emissions

Latest 2050

810,437 tCO 2 e 1)

923,823 tCO 2 e

p0

Have best-in-class energy efficiency for new products

2023

–

Target achieved

We developed an EcoDesign Specification Template, which is mandatory for all new product developments starting from FY 23/24.

p10

Reduce energy intensity of our operations by 25%

2030

100.5 MWh/mCHF 1)

84.8 MWh/mCHF

p6

80% of purchased electricity is from green sources

2030

46%

53%

p3

100% of fleet in Germany, France, and the UK is electric- or hydrogen-based

2030

–

9%

This is an improvement versus 4% in the previous FY.

p1

All manufacturing sites maintain Energy Management Systems based on ISO 50001 3)

2023

21% 2)

61% 4)

p5

Circular Economy & Materials

All new product developments and optimizations are covered by our circularity approach

2023

–

Target achieved

We developed an EcoDesign Specification Template, which became mandatory for all new product developments in FY 23/24.

p10

We offer extended producer responsibility take-back schemes for all products and packaging in top ten sales countries

2027

–

–

Strategic partnership with Resourcify launched for development of pilot schemes in Austria, Germany, Switzerland, and the UK. Kick-off workshop held in Germany.

p5

Zero fossil fuel-based plastic used in packaging

2027

223 tons

472 tons

Unfortunately, the trend is going in the wrong direction and has in fact doubled since the baseline year. We had planned to begin initiatives in FY 23/24 but shifted due to stronger focus on responsible forestry initiatives. Our new aim is to switch 33% of plastic packaging in FY 24/25.

p0

100% of paper, wood, and cardboard stems from Forest Stewardship Council-certified sources 5)

2027

–

25%

We achieved our aim for FY 23/24 of converting 25% of all procurement spend for paper, wood, and cardboard to FSC-certified goods. Our aim is to further increase this to 50% in the next financial year.

p3

Double the total number of sustainability-related product declarations/certifications, including Cradle-to-Cradle and for recycled content

2027

170

322 4)

p9

Zero waste to landfill in operations

2027

3,443 tons

2,553 tons

Six sites with a combined 67% of our waste to landfill baseline received one-on-one support, including an on-site waste audit and specific waste optimization action plans in collaboration with our external experts from Beyondly.

p3

1 Baseline FY 19/20 in line with Science Based Targets initiative validation

2 Baseline FY 19/20

3 Scope refers to all manufacturing sites constituting the top 85% of on-site energy consumption. Also referred to as "Operationalization of Energy Management Systems (EnMS)", as named in our credit facility agreement

4 2023–2024 PwC-assured. The assurance statement is available at bit.ly/Assurance_Report_23_24

5 Or similarly certified by other accepted responsible forestry schemes

Partnerships

Material Topic

Target

Target Year

Base­line FY 20/21

Perfor­mance FY 23/24

Notes

Status

Supplier Sustainable Develop­ment

Assess all high-risk suppliers for their sustainability management through a third party or off-board them for lack of participation

2027

10%

31.7% 1)

p3

At least 45% of our high-risk suppliers participate in our sustainability engagement program

2027

10%

31.7%

p7

Close at least 80% of high-priority corrective actions of assessed suppliers

2027

–

9%

825 high-priority corrective actions have been requested since the launch of our supplier engagement program. However, many suppliers are delayed in implementing them. In FY 24/25, we will increase awareness raising and communication with them, as well as improving our monitoring processes.

p1

90% of assessed suppliers with priority findings have completed a sustainability training

2027

–

–

We developed training packages for our suppliers together with external partner ELEVATE, and we invited 221 suppliers to participate in training to improve their sustainability performance as planned. However, the launch took place near the end of the financial year and thus no update can be provided yet on completion rates.

p2

Provide information regarding conflict minerals for high-risk suppliers

2027

–

–

Suppliers providing 89% of the relevant parts completed Conflict Minerals Reporting Templates upon our request, with over 600 suppliers responding.

p4

Human Rights

Reduce the risk of forced labor for migrant workers by providing ethical recruitment trainings for all our labor agents in sending and receiving countries

2027

–

–

A tailored training program for dormakaba labor agents was developed in FY 23/24 as planned. This will be rolled out in FY 24/25.

p3

Support the right to water in communities where we manufacture by establishing water stewardship programs in areas of high water scarcity, with no absolute increase in water consumption and reducing water intensity by 28%

2027

75,086 m 3 absolute consumption and 25.5 L/hours worked 2)

55,554 m 3 absolute consumption and 18.2 L/hours worked

While the target was achieved ahead of schedule in FY 22/23, we will continue to monitor in the coming years to ensure the level remains within the target threshold in 2027.

p10

Ensure supply chain traceability for minerals with a high risk of child labor

2027

–

–

In FY 23/24 we entered into a ten-year partnership with Save the Children to remediate child labor in the mining industry in the Democractic Republic of China. Regarding our supplier dialogue program, ten suppliers have been prioritized for further action and five invited to join a dialogue. The dialogues are planned for FY 24/25.

p3

Customer Health & Safety

Collaborate on health and safety training with subcontractors and installation partners

2027

–

–

We are behind plan and will refocus efforts in FY 24/25.

p0

Collaborate on training and provide information materials on the safe operation of our products for all end users

2027

–

–

We are behind plan and will refocus efforts in FY 24/25.

p0

At least one corrective action and/or one awareness training session for each product-related injury

2027

–

–

To support the tracking of corrective actions, we have completed the development of a workflow for product safety risk identification in our global incident management tool.

p10

1 2023–2024 PwC-assured. The assurance statement is available at bit.ly/Assurance_Report_23_24

2 Baseline FY 19/20

Sustainability governance

Our Sustainability Charter defines the management framework required to achieve our sustainability vision. In FY 23/24, the Charter was updated to improve governance and execution processes, to be aligned with upcoming regulations like the CSRD, and to adapt to the changes in the organizational structure. The most fundamental changes are related to the responsibilities of the Board of Directors, the Executive Committee, and the Global Sustainability Working Group. We have also introduced the requirement of monthly status reports on Must-Have sustainability initiatives that are shared with the Group Sustainability Council, the Executive Committee, and the Chairman of the Board. Lastly, we have eliminated the Region Sustainability Network to adapt to the organizational changes.

An overview of the dormakaba sustainability organization can be found below. Further duties, authorities, and reporting channels for the various bodies are set out in the Sustainability Charter.

Sustainability organization

Global Sustainability Conference

In November 2023, 40 members of dormakaba’s Global Sustainability Working Group gathered for the annual Sustainability Conference to move the sustainability agenda forward. Representatives from all four Expert Groups worked on action plans to get us closer to achieving our ESG targets. The key topics were – among others – development of an HSE Change Management System; training on our new health and safety incident reporting tool; EcoDesign product specifications, supplier onboarding process, and outreach, both generally and for conflict minerals and cobalt reporting; local DE&I topics and reporting improvements for training hours.

Besides the break-out sessions, further workshops kept the participants busy. The Working Group gave recommendations for updating the Sustainability Charter according to the new S4G organization and upcoming ESG regulations. Furthermore, during an intensive workshop we have discussed financial risks and opportunities for related to sustainability topics, to give valuable input for the financial materiality assessment – a key element in double materiality assessments required by the EU Corporate Sustainability Reporting Directive.

Winners of the Changemaker Awards were once again announced. One employee per Expert Group was honored in recognition of their extraordinary work and for going above and beyond in supporting sustainability initiatives. Furthermore, our then CEO, Jim-Heng Lee, and Svein Richard Brandtzæg, Chairman of the Board of Directors, also joined the event to share their views on the importance of sustainability in the company’s strategy and transformation.

Stakeholder dialogue and partnerships

dormakaba attaches great importance to regular contact and ongoing dialogue with our stakeholders at both local and global levels. We consider the close involvement of our stakeholders to be an asset in our ongoing efforts and therefore pursue a goal of creating better mutual understanding, based on trust, to enhance our partnerships and collaboration. Examples of stakeholder dialogue in FY 23/24 include:

• Employees: 6,655 employees worldwide participated in this yearʼs Pulse Check survey. The implementation of the S4G Transformation required structural changes within several departments and countries, where intensive negotiations took place between employee representatives and dormakaba, to find socially acceptable solutions for all those affected and to significantly reduce and, if possible, avoid layoffs. Solutions to mitigate the negative economic consequences for the employees affected were agreed in the social plans.
• Customers: We organized two workshops with our client, Lindner on sustainability-related topics such as reporting and the circular economy, to share best practices on our work. We opened our second Customer Experience Center in Mumbai (India) to help our customers experience our products and solutions. At our German Partner Congress, more than 430 of our partners joined to meet our CEO, Till Reuter, and to learn about growth opportunities with new products and solutions. Furthermore, we hosted the Architects Connect 2024 summit in collaboration with the German Design Council, that brought together international architects and industry leaders to exchange visionary ideas and reimagine the future of architecture and urban planning. At the Heinze “Klimafestival für die Bauwende” we presented our sustainable solutions MotionIQ and the Door Efficiency Calculator and shared ideas and experiences with many other companies in the building industry working toward a low-carbon economy. dormakaba representatives participated on the panel during our “Whatʼs next? Save resources" discussion to address challenges and opportunities, regulatory trends, and the way forward for a sustainable industry.
• Suppliers: We continuously engage with our suppliers through the EcoVadis platform and lead conversations to gain greater visibility of the upstream parts of our cobalt supply chain. This financial year, we launched sustainability training sessions for suppliers to strengthen our partnership with them, and organized three Supplier Conferences in Germany, China, and the USA.
• Government and Civic Society: dormakaba was honored to be one of only two multinationals to speak at the Swiss Business and Human Rights Forum, a national event bringing together business representatives, leaders from different sectors, policymakers, academic, and civil society experts to discuss and debate on pressing business and human rights issues. Stephanie Ossenbach, our Group Sustainability Officer was elected to the Board of the UN Global Compact Network Switzerland & Liechtenstein, a key organization that helps to raise awareness of and embed responsible business conduct across all sectors in these countries. Additionally, our Head of Product Sustainability was re-elected as Board member of the Institut Bauen und Umwelt e.V., the largest association of building material manufacturers devoted to the concept of sustainable construction.

Working together with industry associations to shape the future of sustainable construction

The Institut Bauen und Umwelt (IBU), or Institute for Construction and Environment, is a German industry organization with over 300 members dedicated to promoting sustainability within the construction sector. It is also one of the EUʼs largest program operators for Environmental Product Declarations (EPDs). These declarations offer transparent and verified information about the environmental impact of construction materials throughout their life-cycle. Overall, the IBU plays a crucial role in advancing sustainable construction by providing essential tools, resources, and certification services to the construction industry.

Lea Rammelmann, our Head of Product Sustainability, has been a member of the IBU’s Board of Directors since 2023. We sat down with Lea to find out more about her role and what this means for dormakaba’s approach to sustainable product development.

Lea, what is the biggest challenge at the IBU at the moment?

The revision of the EU Construction Products Regulation (CPR) is currently a sensitive topic, as it sets harmonized rules for the marketing of construction products. The revision establishes important changes, notably introducing environmental sustainability requirements. It is a significant development that the IBU needs to stay on top of, in order to best advise its members on what it means for the entire construction industry. The IBU’s focus is on establishing stable and sustainable processes and structures so that it can play a proactive role in relation to the new requirements. One of the key decisions taken was to position the IBU as a notified body, which means it will have the authority to validate manufacturersʼ environmental impact assessments, ensuring they meet the stringent regulatory standards.

How do you think this will impact business at dormakaba?

We will need to ensure that our products meet the enhanced standards. This includes obtaining EPDs and other relevant product declarations and certifications for those products for which we have not yet done so. Additionally, the regulation requires more detailed information on the environmental impact of products throughout their life-cycle. We will need to provide transparent data on the environmental performance of our products, which may involve more rigorous testing and documentation processes. And we will need to focus more on designing products that are not only high-performing but also environmentally friendly. This could drive innovation in materials and manufacturing processes to reduce the environmental footprint of our products. The regulation may necessitate a more comprehensive lifecycle analysis of products, from raw material extraction to end-of-life disposal. Furthermore, we will need to integrate these analyses even more into the product development processes to ensure compliance and optimize sustainability.

In your view, is dormakaba well prepared?

Yes, of course! There are still gaps in our EPD portfolio, but with our dormakaba LCA Tool we will be able to close these gaps in the near future. To become even better prepared, we will investigate developing other product declarations and certifications, as the market for green buildings is growing every day. For example, we are planning to publish our first Cradle 2 Cradle certification by the end of this calendar year. We are also working to establish a circular economy approach in which we not only design sustainable products, but also give our customers the opportunity to return our products at the end of life so that they can be reintroduced into our manufacturing processes.

And how do you think the IBU benefits from having you on its Board?

As a representative from dormakaba on the IBU Board, I represent the interests but also the requirements of the Building Product Manufacturers. As we at dormakaba have global expertise in sustainable building solutions and strong sustainability management in general, I can make well-informed recommendations on the future steps of the IBU.

Partnerships

External acknowledgments

We have been awarded a gold medal for our sustainability management by the assessment firm EcoVadis, placing the company in the top 5% of all assessed companies in the assigned sector. Our company has shown an advanced performance in all four assessed categories: environment, labor and human rights, ethics, and sustainable procurement.

We received a B score from the Carbon Disclosure Project (CDP) for our climate-related management. This is in the Management band and the same as the European regional average.

We maintained our “Prime Status” as awarded by the Institutional Shareholder Services (ISS) Environmental, Social and Governance (ESG) Corporate Rating. The ESG Corporate Rating assesses companies based on analysis of more than 100 sector-specific ESG factors. Companies that receive particularly high scores within their respective industry are awarded a Prime Status distinction. This means that they fulfill ambitious absolute performance requirements.

In 2024 our MSCI rating remained unchanged at AA, maintaining our position among the leaders in our industry. The MSCI ESG Rating aims to measure a company’s management of financially relevant ESG risks and opportunities.

We have earned prominent recognition for our sustainability management and are listed as one of the World’s Most Sustainable Companies 2024 by TIME magazine and Statista. dormakaba is among the top 500 companies achieving the highest scores based on more than 20 sustainability criteria from over 5,000 assessed companies.

dormakaba is named as one of Europe’s Climate Leaders 2024 by the Financial Times and Statista. We are among the 600 European companies, that are moving the fastest on decarbonization in parallel to financial growth.