Rümlang/Switzerland, 26 November 2021
UN Global Compact - Communication on Progress (COP) Financial Year 2020/21
This Communication on Progress (COP) is the sixth such report for dormakaba. The former Kaba Group joined as a participant in the UN Global Compact in 2013.
CEO Statement
To our Stakeholders:
Sustainability stands out as a rising trend in 2021, as we have seen accelerated action by regulators towards achievement of national decarbonization goals, and investors' increased interest in the ESG space. In my first months as CEO at dormakaba, I have spent a lot of time listening to our stakeholders, and they all confirm the importance of good sustainability management. Therefore, I am proud to head a company that is already a sustainability pioneer in many areas in our industry.
In alignment with our efforts in sustainable development, we are pleased to reconfirm our commitment and support of the Ten Principles of the United Nations Global Compact. In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations.
We continued our contribution to fight climate change by offering more green solutions for sustainable buildings and by decreasing the environmental impact of our own operations. I am pleased to share that dormakaba is the first company within the access solutions industry to have emissions targets in line with climate science and approved by the Science Based Targets initiative. Investments in energy-saving projects and the purchase of green electricity have resulted in decreasing our carbon footprint by 6% compared to last year.
Turning to our customers, we have been intensifying our open communication on the environmental impact of our products, notably with our new Group-wide life cycle assessment tool, that now covers over 70 products across six of our eight product clusters. We notice increasing interest from our customers and expect the green building market to grow annually by close to 15%. By providing Environmental Product Declarations derived from the tool, we support our customers in meeting the requirements for green buildings certifications and achieving their own sustainability goals.
Looking ahead, I am personally committed to further drive sustainability, which is placed at the core of our vision and strategy. As a consequence, we have expanded our sustainability frameworkwith revised material topics, newly defined focus areas and ambitious targets.
We will continue to actively report on our sustainability progress, through for example an annual Sustainability Report aligned to the Global Reporting Initiative Standards and through this Communication on Progress. We also commit to share this information with our stakeholders using our primary channels of communication.
Sincerely yours,
Sabrina Soussan
Chief Executive Officer, dormakaba Group
dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com
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UN Global Compact - COP 2020/21 | ||||
Human Rights Principles | ||||
Principles | Disclosures | Source | ||
Principle 1: | • | dormakaba acknowledges our responsibility to respect human rights as outlined in | Modern | |
Businesses | ||||
Slavery | ||||
the UN Guiding Principles on Business and Human Rights (UNGPs) as well as in the | ||||
should support | Statement | |||
Australian Modern Slavery Act 2018 and the UK Modern Slavery Act 2015. Acting in | ||||
and respect the | alignment with the local laws and regulations remains the unquestioned basis of | 2020/21 | ||
protection of | dormakaba's day-to-day business. | |||
internationally | • | The dormakaba Code of Conduct (CoC) contains standards and rules on human | Code of | |
proclaimed | rights, bribery and corruption, equal employment opportunities, workplace | Conduct | ||
harassment, conflicts of interest, antitrust and competition law and procedures for | ||||
human rights | ||||
reporting misconduct. | ||||
• | dormakaba has also set forward our Supplier Code of Conduct (SCoC) which | |||
includes three main sections of specific bearing, namely human rights, fair labor | Supplier | |||
conditions and the suppliers' own procurement practices. The dormakaba SCoC is | Code of | |||
integrated in the company's online bidding system. It is further included as part of | Conduct | |||
new standard contracts. | ||||
• | Our human rights commitment was published in the form of the dormakaba | |||
Statement of Commitment on Human Rights. It was elaborated based on a gap | SR 2020/21 | |||
assessment, stakeholder consultations and the salient issues identified. As part of | Human Rights | |||
our Human Rights Roadmap, dormakaba sought to better understand migrant | ||||
workers' risks and vulnerability by carrying out social audits in the financial year | ||||
2020/21 in our operations in Malaysia and Singapore. | ||||
• | To achieve this, we leveraged our membership to the Responsible Labor Initiative to | |||
work with local auditors to assess our operations based on the Responsible | ||||
Business Alliance Code of Conduct. The audits revealed, for example, that migrant | ||||
workers under employment had paid recruitment fees. However, under the Employer | ||||
Pays Principle, the costs of recruitment should be borne not by the worker but by the | ||||
employer. We have therefore committed to reimbursing all recruitment fees within | ||||
the timeline defined by the Responsible Labor Initiative. This was supplemented by a | ||||
specific Zero Recruitment Fees Directive as a preventative measure. | ||||
dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com
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UN Global Compact - COP 2020/21
Principle 2: | • | Senior managers and the general managers of local companies are responsible for | Code of |
implementation and enforcement of the Code of Conduct (CoC) and are trained in | Conduct | ||
make sure that | |||
dealing with the CoC. The Compliance Officer within the Legal Department monitors | |||
they are not | these processes and, alongside line managers, is one of the defined contacts for | ||
complicit in | reporting infringements of the CoC. | ||
• | In the financial year 2020/21, we continued to make significant progress in our | SR 2020/21 | |
human rights | |||
supplier sustainability engagement strategy which includes human rights criteria in | |||
abuses | three key areas: | Supplier Social | |
and | |||
o Scaling up supplier off-site assessments in collaboration with EcoVadis | |||
Environmental | |||
o Roll out of procedures in case of non-participation or non-compliance | Assessment | ||
o Training of procurement employees on sustainability and the processes | |||
related to off-site assessments. | |||
• | In the area of Human Rights Due Diligence and in addition to the activates reported | ||
under Principle 1, dormakaba progressed as follows in the financial year 2020/21: | |||
o We commissioned a study by the University of St. Gallen to gain deeper | |||
insight in tracing cobalt in fragmented supply chains related to electronics | |||
components that we use in our products. The study identifies and maps | SR 2020/21 | ||
key actors within the cobalt value chain, along with the relevant legal | |||
Human Rights | |||
frameworks. The research also assesses typical human rights risks, as | |||
well as governance and traceability challenges and provides solutions | |||
based on desk research and expert interviews. | |||
o Recommendations to work together with relevant multi-stakeholder groups | |||
to amplify activities were taken up and supplemented by our joining the | |||
Responsible Minerals Initiative (RMI). | |||
o We developed a Responsible Labor Directive as a result of policy gaps | |||
discovered in the course of social audits. The aim was to give more | |||
concrete guidance and minimal standards on topics such as freely chosen | |||
employment, working hours, worker's accommodation, and responsible | |||
recruitment on a global level. | |||
Labor Principles
Principle 3: | • | dormakaba respects the rights of all our employees in respect of freedom of | SR 2020/21 |
association and collective bargaining. Collective bargaining agreements are | Freedom of | ||
Businesses | |||
managed in accordance with the respective local regulations and differ within the | Association | ||
should uphold | various dormakaba units. Approximately 57% of the employees in the scope of the | and Collective | |
the freedom of | sustainability reporting 2020/21 were unionized or covered by collective bargaining | Bargaining | |
agreements. | |||
association and | |||
• | In the financial year 2020/21, clauses regarding freedom of association from were | ||
the effective | |||
formalized in the Responsible Labor Directive. These include ensuring that workers | |||
recognition of the | can exercise their rights to organize in a climate free of violence, pressure, fear or | ||
right to collective | threats and that workers and/or their representatives shall be able to openly | ||
communicate and share ideas and concerns with management regarding working | |||
bargaining | |||
conditions and management practices without fear of discrimination, reprisal, | |||
intimidation, or harassment. | |||
Principle 4: | • | dormakaba's values and our Codes of Conduct condemn all forms of forced and | Modern |
compulsory labor as well as child labor. The full dormakaba Modern Slavery | Slavery | ||
the elimination of | |||
Statement 2020/21 is available on our website. | Statement | ||
all forms of | • | Regarding the minimum employment age, we follow the principles of the UN Global | 2020/21 |
forced and | Compact and the conventions of the International Labor Organization (ILO). | ||
• | The topics of forced or compulsory labor and child labor are also included in the | Code of | |
compulsory labor | |||
dormakaba supplier sustainability engagement program and have been identified as | Conduct | ||
salient issues in the company's human rights due diligence process. The potential | |||
Principle 5: | impact on these issues exists primarily in the upstream value chain and not in | Supplier | |
dormakaba operations. These topics are therefore included in the frame of the | |||
the effective | company's human rights roadmap with planned activities to increase value chain | Code of | |
abolition of child | transparency. | Conduct | |
labor | |||
dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com
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UN Global Compact - COP 2020/21
Principle 6: | • | dormakaba is committed to fostering a diverse and inclusive workforce that reflects | Code of |
the varied markets in which it operates. The Group-wide Code of Conduct (CoC) | Conduct | ||
the elimination of | |||
defines the principles of collaboration, which are binding for all employees. This | |||
discrimination in | includes the declared aim of dormakaba to avoid discrimination for reasons of age, | ||
respect of | gender, race or color of skin, nationality, social or ethnic origin, language, sexual | ||
orientation, marital status, religion, state of health or disability or any other legally | SR 2020/21 | ||
employment and | |||
protected status under local law. | Employment | ||
occupation | • | All potential complaints can be addressed with the supervisor, the supervisor's | |
manager, a member of the Executive Committee, Segment HR, Group HR or the | |||
Compliance Officer, who investigate them promptly and discreetly. Employees will | |||
not suffer adverse consequences as a result of reporting in good faith any act of | |||
discrimination or harassment. | |||
• | Compliance to various regulations such as the obligatory gender pay reporting in | ||
Australia, Switzerland and the UK, and the US Employer Information Report to the | |||
Equal Employment Opportunity Commission is ensured at a local level. | |||
• | On a global level, the Group Directive Compensation, approved by the | ||
Compensation Committee of the Board of Directors, establishes fair compensation; | |||
determination is based on the job function and relevant local market benchmarks. It | |||
is not influenced by personal attributes such as age, nationality or gender. The | |||
global grading system ensures that functions are evaluated in a consistent manner | |||
across the organization. | |||
• | Examples of activities fostering diversity and equal opportunity in the financial year | ||
2020/21 included, among others: | |||
o AS AMER implemented a partnership with a leading provider of diversity | |||
recruitment to promote all open positions in the USA on minority and | |||
diversity job boards to reach a broader, more diverse candidate pool. | |||
Additionally, an intercultural training module was launched at our Phoenix | |||
site aimed at increasing intercultural understanding with the Hispanic | |||
culture. | |||
o AS DACH started a scholarship program in which engineering students | |||
from Singapore complete a practical semester at one of our facilities in | |||
Germany, in order to support intercultural understanding of both markets. | |||
o AS EMEA's gender diversity program began its second year. It aims to | |||
promote more women from within our own ranks, especially in commercial | |||
and general management positions. A series of actions to start addressing | |||
the diversity challenges has been developed, including a review of | |||
recruitment processes to remove gender biases in job ads and interviews, | |||
increased focus on female talents in career progression and development, | |||
and actions to strengthen the self-affirmation of our female talents. One | |||
initiative is the Female Leaders Network which now has 54 participants. | |||
The focus is on self-development, mentoring, culture, and communication. | |||
The network has regular meetings to collaborate and share experiences, | |||
work on self-development, diversity projects, and learn from inspiring | |||
guest speakers. | |||
o Key & Wall Solutions conducted trainings on equal employment | |||
opportunity, diversity, and anti-harassment in the USA. | |||
Environmental Principles
Principle 7: | • | The potentially greatest environmental risks lie in the processes used for | SR 2020/21 |
electroplating and surface finishing, painting, melting as well as zinc and aluminum | Environmental | ||
Businesses | |||
die casting. These processes are used at 35 of the 102 locations covered in the SR | |||
Management | |||
should support a | 2020/21. dormakaba's environmental management places emphasis on these four | ||
precautionary | processes. | ||
• | The Group Manufacturing Directive includes expectations on achieving international | ||
approach to | |||
standards for environmental management, energy, and health and safety, and | |||
environmental | specifically for any locations carrying out the above-mentioned processes. Based on | ||
challenges | an overview of dormakaba's sites including plants, regional logistic centers, local | ||
assembly and distribution centers and service hubs, the Directive sets a framework | |||
for expanding the coverage of sites maintaining such management systems. | |||
Certifications are required for some sites based on a priority listing depending on | |||
size, resource consumption and environmental risks. | |||
• | Today, 50% of manufacturing sites already benefit from environmental standards set | ||
forth by ISO 14001 (or similar) certification. During the financial year 2020/21, nine | |||
of our operational sites in Germany, Austria, and Switzerland became ISO 9001, | |||
ISO 14001, and ISO 45001 certified under one coordinated audit process. | |||
dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com
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UN Global Compact - COP 2020/21
- In the 2020/21 financial year, dormakaba was not subject to incidents of non- compliance with environmental laws and regulations.
Principle 8: | Energy and Carbon Emissions | SR 2020/21 | |
• | Electricity and fuel usage play a crucial role in dormakaba's operations due to the | Environmental | |
undertake | |||
processes involved. Many of the components used in our end-products are | |||
Management | |||
initiatives to | manufactured in-house, in addition to further processing of bought-in parts. Some of | ||
promote greater | the commodities such as nickel silver are also produced on site, which adds to | ||
energy demand. The total energy consumption was over 250,000 MWh in the | |||
environmental | |||
2020/21 financial year. Electricity and fuels for heating or manufacturing both play a | |||
responsibility | crucial role in production processes, constituting nearly 80% of total energy | ||
consumption. The remainder is associated with the fuel consumption of our vehicle | |||
fleet. | |||
• | In the financial year 2020/21, our total greenhouse gas emissions (GHG) amounted | ||
to 70,313 tCO2e. Around 60% were emitted as a consequence of electricity | |||
consumption, followed by heating and vehicle fuel consumption, and volatile as well | |||
as process gas emissions. | |||
• | As part of our commitment to the Science Based Targets initiative, we carried out a | ||
screening of Scope 3 emissions. The screening showed that the largest sources of | |||
Scope 3 emissions stem from purchased goods and services (75%) and use phase | |||
of sold products (11%). We also learned that Scope 3 emissions constituted around | |||
90% of our combined Scope 1, 2 and 3 carbon emissions, highlighting the | |||
importance of Scope 3 emissions on our climate strategy. | |||
• | We therefore developed carbon inventories for these categories of purchased goods | ||
and services and use phase of products. For the latter, we calculated the footprint of | |||
the 334 products that consume energy after installation, including those that are | |||
battery-operated. For the financial year 2020/21, value chain emissions for the use | |||
phase of products totaled 181,600 tCO2e. As mentioned, value chain emissions | |||
from purchased goods and services represents the vast majority, totaling 802,400 | |||
tCO2e in the reporting period. | |||
• | Climate-related initiatives implemented during the reporting year resulted in total | ||
annual savings of approximately 15,500 tCO2e (nearly 21% of our total footprint). | |||
Therein, we worked diligently to source renewable electricity wherever feasible, | |||
leading to an emissions avoidance of approximately 14,400 tCO2e. 45% of the | |||
electricity that dormakaba consumed came from renewable sources. | |||
• | In the financial year 2020/21, energy saving initiatives were being implemented at | ||
various sites in the reporting coverage. This work included retrofitting facilities to | |||
LED lighting systems, upgrading equipment such as air compressors, and the | |||
optimization of heating and cooling systems (installation of air curtains, heat | |||
recovery, and the renewal of circulation pumps, radiators and valves). |
Water and Effluents
-
Most of the water consumed by dormakaba's operations is drawn from municipal water supplies and is primarily used for cooling, manufacturing processes (e.g. electroplating) and sanitation. Wastewater is discharged in compliance with the local requirements and is treated by specialized third party companies where necessary. Some examples of good water and effluent management initiatives in the financial year 2020/21 included:
o AS AMER optimized the wastewater treatment process at the Indianapolis (USA) facility and achieved 50% increase in throughput and decreased the use of treatment chemicals. At the Huntsville (USA) manufacturing facility, the water used for washing parts was recirculated into the system, resulting in a significant reduction of approximately 50% in overall water usage for the site. At the Montreal (Canada) facility, 36% of the washing and urinal systems in washrooms are now touchless.
o AS APAC at the Chennai (India) facility installed an electromagnetic flow meter to quantify and control sewage discharge; furthermore, in the toilets and washroom areas the new control valve solutions resulted in the reduction of water consumption by 5% per year. At Taishan (China), the water consumption was reduced by 3% on a YoY basis by correcting leakages in the underground pipeline and by optimizing water consumption in the canteen.
o AS DACH at the Ennepetal facility replaced the gravel filter with a drum belt filter in the wastewater treatment plant of the electroplating unit, which resulted in lower zinc and iron levels in the wastewater; furthermore, they introduced a cobalt-free coating process for corrosion protection. At the Singapore and Suzhou (China) facilities, the water consumption trend is
dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com
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DORMA+KABA Holding AG published this content on 10 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 December 2021 08:15:09 UTC.