Outro
About this report
This is the dormakaba Holding AG (“dormakaba”) Sustainability Report 2023/24, which highlights our sustainability commitments, strategic approach, and progress, and is geared towards all stakeholders. This is the company’s ninth sustainability report. This report has been prepared in accordance with the GRI Standards. The report covers the financial year 2023/24, from 1 July 2023 to 30 June 2024, and it was published on 3 September 2024. dormakaba reports on an annual cycle and published the previous report in August 2023.
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 data analysis and calculation procedures, we have better granularity on our Scope 3 emissions figures. We are better able to differentiate between different categories, leading to a restatement of Scope 3 Category 1: Purchased goods and services, as some emissions attributed to this category are now reflected under categories 2, 4, 5, 6, or 9. The restated figures are available in our ESG Performance table.
Significant changes to the organization and its supply chain
The Board of Directors of dormakaba appointed Till Reuter as the new CEO effective 1 January 2024. Till Reuter has the broad industrial expertise and proven leadership skills to further develop dormakaba on its growth path and effectively execute its strategy and transformation program. He stepped down from the Board of Directors of dormakaba at the same time, having been a member since October 2023.
Alex Housten, Chief Operations Officer (COO) and member of the Executive Committee (EC), left the company at the end of March 2024. The Board of Directors has appointed Carsten Franke to take over the role effective 1 August 2024. He possesses an extensive track record in driving companies toward operational excellence through optimizing their manufacturing footprint and supply chain, as well as enhancing plant and procurement performance.
Reporting coverage and processes
The data presented covers 95% of dormakaba employees in 111 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. 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 TCFD report, the ESG Performance table, and the Strategic Targets table. The Audit Committee is responsible for contributing to the integrity of the Sustainability Report and monitoring the assurance of it, and the Board of Directors reviews and approves it.
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 also 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 are familiar with 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 guidance for our employees to ensure compliance with relevant laws and to minimize any related risks.
Specifically, the Group Anti-Corruption and Bribery Directive defines clear requirements in terms of documentation and approval for granting and accepting benefits in the public and private sectors depending on certain thresholds and the mandatory consideration of additional principles to prevent even the mere appearance of corruption. Employees affected, e.g., in sales or procurement, receive training on these requirements. To simplify compliance with the documentation and approval requirements, we have established an electronic workflow. Other anti-corruption measures include – among others – the Global Compliance department providing anti-corruption advice and communication measures, e.g., regarding business benefits before Christmas. Furthermore, employees that are part of our international Compliance Organization are specially trained in anti-corruption and serve as a regional or local contact for related questions. Finally, donation and sponsoring activities are monitored annually to avoid the circumvention of our anti-corruption provisions.
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 in which employees speak up and are encouraged to address concerns as outlined in the abovementioned process.
Global Compliance carefully considers all notifications received and, depending on the nature of 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 by 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 Global IT and digital-based product development in Europe and North America. The Group Information Security Directives and the Data Protection Management System Directive provide guidance for our employees to ensure compliance with relevant laws and to minimize any related risks.
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 deepened the 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. This financial 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.
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 the company was deemed to have a reduced potential impact on sustainable development. 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 continues as we are a member of the UN Global Compact.
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New material topics |
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Previously defined as material |
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Circular Economy |
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Anti-competitive Behavior |
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Diversity |
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Anti-corruption |
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Freedom of Association & Collective Bargaining |
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Water |
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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 reusable 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 aging 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., workersʼ 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 Sustainable 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 Zühlke
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
Copyright: © dormakaba Holding AG, 2024