Geberit : Sustainability 2023

G E B E R I T A N N U A L R E P O R T 2 0 2 3	

Sustainability

Geberit Group

Sustainability

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Sustainability → Introduction sustainability report (Report on non-financial matters)

Sustainability

Introduction sustainability report (Report on non-financial matters)

The sustainability report constitutes the report on non-financial matters, pursuant to Art. 964a ff. of the Swiss Code of Obligations (CO). The sustainability report of Geberit AG is published as part of the online Annual Report on a shared platform. The company's systematic and transparent communication on the subject of sustainability is addressed to a range of target groups, including customers, partner companies, investors, the general public and company employees.

Since 2006, a sustainability performance report has been presented annually in accordance with the guidelines of the Global Reporting Initiative (GRI). In recent decades, GRI was the leading, international standard for sustainability reporting. As part of the reporting in compliance with GRI (first in accordance with the GRI G3 and G4 guidelines, then in compliance with the GRI Standards), Geberit endeavoured to provide comprehensive reporting on all material topics and deployed the "comprehensive" option until the revision of the standard. This approach is also followed in the present report.

The sustainability report now also meets the requirements regarding non-financial reporting in the revised Swiss Code of Obligations. The necessary reporting on climate, social and employee matters, adherence to human rights and fighting corruption has been integrated into existing reporting, which has been developed according to the GRI Standards over the course of many years. Information on risks, concepts (including the due diligence review), measures and performance indicators were, where necessary, supplemented and are integrated in existing management approaches in accordance with the GRI Standards in the material topics (matters), see also  Content Index on non-financial reporting according to the Swiss Code of Obligations (Art. 964a ff. CO). Necessary information on the business model and the value chain has also been summarised in a separate chapter.

The Geberit sustainability report (report on non-financial matters) comprises not only the Sustainability Performance Report compiled in compliance with the GRI Standards, but also further information at different levels:

•  Business model and value chain
•  Materiality analysis
•  Sustainability strategy
•  Sustainability Performance Report
•  Key figures sustainability
•  GRI Content Index
•  Art. 964a ff. CO Content Index
•  SASB Content Index
•  SDG Reporting
•  Communication on Progress UNGC
•  TCFD Reporting
•  Audit Report Greenhouse Gas Balance

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Sustainability → Business model and value chain

Sustainability

Business model and value chain

With its innovative solutions for sanitary products, Geberit aims to achieve sustained improvement in people's standard of living. The economy benefits from Geberit's leading role in the change towards a sustainable sanitary industry. Geberit contributes to this change in the industry through better sanitary and hygiene standards, a durable, resource-efficient sanitary infrastructure, through know-how transfer in the sanitary industry, via impetus for the economy in regional economic areas, and through strong and long-term relationships with suppliers.

"Go-to-market" model (business model)

Geberit offers customers high-quality, durable sanitary products and solutions for applications in buildings. The products are used in both renovation projects and new buildings. The product area Installation and Flushing Systems comprises all sanitary installation technology plus a broad range of flushing systems for toilets including cisterns and fittings. The product area Piping Systems includes building drainage and supply systems and comprises all piping technology found in buildings for drinking water, heating, gas and other media. The Bathroom Systems product area comprises all relevant furnishings in a bathroom such as bathroom ceramics, furniture, showers, bathtubs, taps and controls and shower toilets. For further information on the product range, see www.geberit.com > Products > Product portfolio.

In terms of market cultivation, Geberit relies on a three-stage distribution channel, see also  Business Report > Business and financial review > Financial Year 2023 > Customers. The vast majority of products are distributed via the wholesale trade. Dealerships then sell them to plumbers and present them at exhibitions and other events where end customers can gain information. At the same time, Geberit provides plumbers and sanitary engineers with intensive support through training and advice.

In 2023, net sales amounted to a total of CHF 3,084 million (previous year CHF 3,392 million). For net sales by markets/regions as well as by product areas, see  Business Report > Business and financial review > Financial Year 2023 > Net sales. Significant indicators for the creation and distribution of value can be found in the  financial reporting.

Value chain

Geberit forms part of the value chain in the construction industry. It has significant impacts for the employees, on the customer side at sanitary engineers, plumbers and end users, as well as at suppliers and transport companies. Continuous investment in the production plants in Europe, China, India and the USA, as well as the logistics centre in Germany for installation and flushing systems and piping systems as well as the decentralised network of 13 European distribution sites for ceramic appliances and bathroom furniture will strengthen these individual economic areas. Geberit know-how and Geberit products and system solutions significantly reduce the burden on water and drainage systems, thus reducing the associated costs and consumption of resources.

Geberit is committed to sustainable sanitary systems which, as elements in construction, help to shape the infrastructure as a whole. Geberit lends impetus to the sanitary industry with new products that are sold and installed worldwide by wholesalers, plumbers and sanitary engineers. In the reporting year, some 60,000 professionals were provided with education and further training on Geberit products, tools, software tools and installation skills at 30 Geberit Information Centres in Europe and overseas. In this way, Geberit supports innovation, growth and value added in the sanitary industry.

Furthermore, Geberit is an important employer for the communities around its sites. Added to this is Geberit's contribution as a training company for apprentices. At the end of 2023, Geberit employed 274 apprentices, thus supporting training in different countries, see also  GRI 404.

The economic impact on suppliers and transport companies is also significant. In 2023, Geberit procured goods amounting to CHF 883 million (previous year CHF 1,136 million) and had business relations with a total of 1,603 direct suppliers. Geberit does not have its own transport fleet and therefore generates orders for external transport companies.

For further information on management of the value chain, see  Procurement as well as the chapters  Procurement,  Production and  Logistics in the business and financial review.

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Value creation - an overview

The value creation graphicsummarises how Geberit creates value for employees, society, customers, the environment as well as shareholders. The long-term corporate strategy is based on four pillars: Focus on sanitary products, Commitment to innovation and sustainability, Selective geographic expansion and Continuous optimisation of business processes. Values such as integrity, team spirit, enthusiasm, modesty and an ability to embrace change are core factors. This strategy is implemented on the basis of seven growth and earnings drivers. These are as follows: "go-to-market" model, technology penetration, value strategy, innovation leadership, sustainability leadership in the sanitary industry, selective technology penetration, and continuous process and cost optimisation. The sustainability strategy supplements the corporate strategy with twelve modules. These modules strengthen the "go-to-market" model (business model) and generate added value for various stakeholders in the areas People (employees and society), Planet (environment) and Profit (value chain including compliance and governance) in a targeted manner. The results of these activities show the diverse added value in the three dimensions of sustainability. At the same time, the results contribute to the UN Sustainable Development Goals (SDGs) set out in the 2030 Agenda for Sustainable Development, see  SDG Reporting.

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Sustainability → Materiality analysis

Sustainability

Materiality analysis

Process of determining material topics (GRI 3-1)

Since 2006, Geberit has been reporting in accordance with the guidelines of the Global Reporting Initiative (GRI). In the present report, Geberit implements the current GRI Standards from 2021. The starting point is a materiality analysis that has been developed further over the years, which is based on the procedure described in the GRI Standards.

Material topics are determined in a gradual process. Twenty topics were chosen from a range of economic, social and environmental issues relating to common sustainability standards, industry-specific information as well as the corporate strategy and sustainability strategy of Geberit. These were evaluated according to their relevance for the success of the business in an internal process involving different managers. The stakeholder panel convened by Geberit on a regular basis was used to evaluate the relevance of issues in terms of their impact on the business activities of Geberit. The results were consolidated in a list of economic, social and environmental issues and were validated and approved by the Board of Directors and the Group Executive Board. The materiality analysis has been updated on a regular basis since the first analysis in 2014.

Material topics and related measures are presented in compact form within the Sustainability strategy. Also of a material nature are the principles of the UN Global Compact that Geberit has committed itself to uphold and that are presented in the

• Communication on Progress UN Global Compact.

For further information on sustainability topics that were of particular relevance in the reporting year, see Business and financial review with the following chapters:  Employees,  Customers,  Innovation,  Procurement,  Production,  Logistics,  Sustainability,  Social responsibility and  Compliance.

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Sustainability → Materiality analysis

List of material topics (GRI 3-2)

In accordance with the principle of double materiality, Geberit classifies topics as material if they are significant for the business success of Geberit or if the business activities of Geberit have significant economic, environmental or social effects. A differentiated assessment according to these two dimensions is not shown. The plan for 2024 is to adapt the materiality analysis to correspond to the new guidelines of the Corporate Sustainability Reporting Directive (CSRD) of the European Union.

The topics that Geberit identified as material in the economic, environmental and social dimensions are shown in the graphic below.

People				Planet				Profit
Employee		Diversity & equal		Resources &		Energy & CO2		Products &		Operations
attraction &		opportunity		circular economy			innovation
retention
Health & safety		Social		Water		Eco-design &		Customer		Compliance &
	responsibility			sustainable		relations		governance
					products

The following topics will not be processed further or shown in more detail by Geberit:

• Taxes: As part of its reporting, Geberit provides information on income taxes, see  Note 25 in the consolidated financial statements.
• Biodiversity: Geberit production sites do not endanger biodiversity in protected areas. Biodiversity plays a role when procuring mineral raw materials for ceramic production. This subject was addressed and examined as part of supplier audits. During these audits, it was found that the suppliers in this sector actively address the topic of biodiversity and take appropriate measures within the context of their licence to operate.
• Politics: No support is given to political parties or politicians. Participation in the political process is confined to membership in certain associations and is therefore limited.

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Sustainability → Sustainability strategy

Sustainability

Sustainability strategy

For Geberit, sustainability means being oriented towards the future as well as operating and being successful over the long term. To do this, a balance has to be struck between economic, environmental and social aspects in all decision-making processes. In addition to sustained high profitability, value is simultaneously created for many other stakeholders: innovative, design-oriented and durable products; training and education of plumbers, sanitary engineers and architects; the smallest possible environmental footprint along the entire value chain; production sites with prospects for employees in numerous regions; a cooperation with suppliers and business partners that is based on fairness; and leadership for sustainable development in the sanitary industry.

Sustained improvement in quality of life

For more information on the "go-to-market" model (business model) at Geberit and how Geberit implements integrated sustainability along the entire value chain and thus creates value, see Business model and value chain. The vision of achieving sustained improvement in the quality of people's lives with innovative sanitary products represents the starting point. To bring this vision to fruition, Geberit continuously refines its products, systems and services and sets new standards as a market leader in the area of sanitary products. Values such as integrity, team spirit, enthusiasm, modesty and an ability to embrace change are core factors.

People, Planet and Profit in harmony

The long-term corporate strategy is based on four pillars: Focus on sanitary products, Commitment to innovation and sustainability, Selective geographic expansion and Continuous optimisation of business processes. This strategy is implemented on the basis of seven growth and earnings drivers. The sustainability strategy supplements the corporate strategy and the growth and earnings drivers with twelve modules. These modules strengthen the "go-to-market" model (business model) and generate added value for various stakeholders in the areas People (employees and society), Planet (environment) and Profit (value chain including compliance and governance) in a targeted manner. The results of these activities show the diverse added value in the three dimensions of sustainability.

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Contribution to sustainable development

At the same time, the results contribute to the UN Sustainable Development Goals (SDGs) set out in the 2030 Agenda for Sustainable Development, see  SDG Reporting. Goal 4 ("Quality Education"), Goal 6 ("Clean Water and Sanitation"), Goal 11 ("Sustainable Cities and Communities") and Goal 13 ("Climate Action") are a key focus for Geberit. Compared with the previous year, Goal 8 ("Decent Work and Economic Growth") and Goal 9 ("Industry, Innovation and Infrastructure") have been replaced in order to define in even more concrete terms the areas where Geberit achieves added value for society.

The modules of the sustainability strategy bundle current and future projects, initiatives and activities. Each module contains clear responsibilities with measurable objectives, derived measures and quantifiable key figures for effective monitoring.

People

Planet

Profit

Employee

Diversity & equal

Resources &

Sustainable

Green

attraction &

Energy & CO2

opportunity

circular economy

supply chain

production

retention

Health & safety

Social

Water

Eco-design &

Green logistics

Compliance &

responsibility

sustainable

governance

products

The following pages contain an overview of the sustainability modules with important facts and achievements from 2023, plus an outlook for the years 2024 to 2026. This sustainability strategy covers the entire Geberit Group and indicates how Geberit wants to be a leader in the sanitary industry when it comes to sustainability.

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Employee attraction & retention

Geberit is an attractive employer and strives to offer jobs of the highest quality.

Important facts and achievements 2023

• Completion of the implementation of a new performance management process ("valYOU") for performance assessment, defining objectives and succession planning at all sites worldwide.
• Development programmes (GROW and LEAD) for young professionals within the company. Establishment and development of management, methodological and social skills in preparing for the next career step.
• Operations Development Programme (ODP) for talented internal and external prospects in Operations.
• Promotion of decentralised collaborations with universities, plus active participation in the international UNITECH network.
• Development programme for over 100 regional sales managers from European sales companies based on standardised management principles and instruments.
• Selective roll-out of active sourcing activities for recruiting new employees (in selected countries for selected functions).
• Regular exchange of best practices in the area of employee attraction and retention.
• Employment of 274 apprentices with a transfer rate to a permanent employment relationship of 65%.

Outlook for 2024 to 2026

• Revision and roll-out of the Geberit Compass and Geberit Code of Conduct for Employees in 2024.
• Introduction of the Operations Development Programme (ODP) for internal and external managerial staff in Sales and Marketing.
• Continuation of the development programme for managerial staff at the sales companies.
• Group-wideemployee survey in 2025.
• Short surveys on specific topics in individual areas and companies.
• Redesign of employer branding for selected target groups.
• Targeted support for transfer of apprentices to a permanent position. Target rate is 75%.

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Diversity & equal opportunity

Geberit is committed to equal opportunities for all employees. The company promotes mixed teams, offers working conditions for good reconciliation of family and working life, and is committed to inclusive workplaces.

Important facts and achievements 2023

• Approval of strategy for promoting inclusive workplaces and derivation of suitable measures.
• Development of a Group-wide directive on diversity and equal opportunity.
• Workshops for disabled persons were commissioned with assembly and packaging work totalling
  CHF 9.2 million.

Outlook for 2024 to 2026

• Medium-termgoal of 5% share of inclusive workplaces (internal and external).
• More intensive collaboration with third-party institutions.
• Communication of the directive on diversity and equal opportunity and derivation of suitable measures.
• Annual reporting on diversity and inclusive workplaces as part of personnel reporting.

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