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Page 1 / 7
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UN Global Compact – Communication on Progress (COP)
Classification: Public
Financial Year 2021/22
This Communication on Progress (COP) is the seventh such report for dormakaba, having reported since thefinancial year 2015/16. The former Kaba Group joined as a participant in the UN Global Compact in 2013.

CEO Statement
To our Stakeholders:
It has been a year since we launched our new corporate strategy, Shape4Growth, and since then we havebeen passionately working towards our vision to become “the trusted partner worldwide for safe, secure,and sustainable places where people can move seamlessly”. We keep emphasizing that sustainability is core
to our future, to the building industry and thus to our business model.
In alignment with our efforts in sustainable development, we are pleased to reconfirm our commitment andsupport 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 and got closer to achieving our science-based emissions
targets. For example, in the financial year 2021/22, we achieved a 2.4% year-on-year reduction in Scope 1+2
carbon emissions and increased the on-site generated electricity by 10%. Furthermore, we started a Value
Discovery Audit process in partnership with Siemens at ten of our largest manufacturing sites, to discoverenergy efficiency and carbon saving potentials, and to maximize energy and CO2 savings by implementing theright strategies and measures for the unique site. The result of the audit is a potential reduction of over 4,000
tCO2.
In terms of our goal to assess all high-risk suppliers for their sustainability management by a third party until
2027, we improved from 10% (in financial year 2020/21) to 18.7%. Furthermore, we have slightly improved thefemale representation at management level to 20% (vs. 19% in the financial year 2020/21). As part of ourcommitment to promoting gender equality in the workplace, we signed the United Nations Women’s
Empowerment Principles (WEPs), and have launched various projects in this topic.
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,

Jim-Heng Lee,
Chief Executive Officer, dormakaba

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 2021/22

Human Rights Principles
Principles
Principle 1:
Businesses
should supportand respect theprotection ofinternationallyproclaimed
human rights

Disclosures

Source•→ Modern
SlaveryStatement
2021/22

•

•

•

•

dormakaba acknowledges our responsibility to respect human rights as outlined in
the UN Guiding Principles on Business and Human Rights (UNGPs) as well as in theAustralian Modern Slavery Act 2018 and the UK Modern Slavery Act 2015. Acting inalignment with the local laws and regulations remains the unquestioned basis of
dormakaba’s day-to-day business.
The dormakaba Code of Conduct (CoC) contains standards and rules on humanrights, bribery and corruption, equal employment opportunities, workplaceharassment, conflicts of interest, antitrust and competition law and procedures forreporting 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
conditions and the suppliers’ own procurement practices. The dormakaba SCoC is
integrated in the company’s online bidding system. It is further included as part of
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
assessment, stakeholder consultations and the salient issues identified. As part ofour 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 towork 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 theemployer. We have therefore committed to reimbursing all recruitment fees within
the timeline defined by the Responsible Labor Initiative. This was supplemented by aspecific Zero Recruitment Fees Directive as a preventative measure.

→ Code ofConduct→ Supplier
Code of
Conduct→ SR 2021/22
Human Rights

dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com

Page 3 / 7
UN Global Compact - COP 2021/22

Principle 2:
make sure thatthey are notcomplicit inhuman rights
abuses•Senior managers and the general managers of local companies are responsible for
implementation and enforcement of the Code of Conduct (CoC) and are trained indealing with the CoC. The Compliance Officer within the Legal Department monitorsthese processes and, alongside line managers, is one of the defined contacts forreporting infringements of the CoC.
In the financial year 2021/22, we continued to make significant progress in our
supplier sustainability engagement strategy, which includes human rights criteria infour key areas:o
To scale up supplier off-site assessments in collaboration with EcoVadis,
we initiated virtual supplier onboarding meetings and assessed 18.7% of
our high-risk suppliers by the end of the financial year 2021/22.
o
We have procedures in place in case of non-participation or noncompliance. During the financial year 2021/22, improvement plans for 234
suppliers were requested, furthermore, six business relationships were
terminated, and two suppliers were blocked from new business.
o
We continuously offer trainings for procurement employees onsustainability and the processes related to off-site assessments. 34
colleagues were trained and 18 attended the virtual supplier onboarding
meetings in the financial year 2021/22.
o
We developed a Sustainable Procurement Directive, that will come into
force in the financial year 2022/23.
In the area of Human Rights Due Diligence and in addition to the activities reported
under Principle 1, in the financial year 2021/22
odormakaba started the enforcement of the Responsible Labor Directive
and the Zero Recruitment Fees Directive.
o
We continued to work together with the Responsible Minerals Initiative(RMI). Using their Conflict Minerals Reporting Template, we launched a
US-wide campaign with more than 1,200 suppliers to provide relevant
information to our customers and around 60% of them submitted Conflict
Mineral Statements.
o
We continued cobalt traceability dialogues with key suppliers on humanrights and environmental risks in joint upstream value chains anddiscussed opportunities for collaboration.

→ Code ofConduct•

dormakaba respects the rights of all our employees in respect of freedom of
association and collective bargaining. Collective bargaining agreements aremanaged in accordance with the respective local regulations and differ within thevarious dormakaba units. Approximately 45% of the employees in the scope of thesustainability reporting 2021/22 were unionized or covered by collective bargaining
agreements.

→ SR 2021/22
ESG
Performance
Table

•

Clauses regarding freedom of association are formalized in the Responsible Labor
Directive. These include ensuring that workers can exercise their rights to organize
in a climate free of violence, pressure, fear or threats and that workers and/or theirrepresentatives shall be able to openly communicate and share ideas and concernswith management regarding working conditions and management practices without
fear of discrimination, reprisal, intimidation, or harassment.

•

dormakaba’s values and our Codes of Conduct condemn all forms of forced andcompulsory labor as well as child labor. The full dormakaba Modern Slavery
Statement 2021/22 is available on our website.
Our Responsible Labor Directive prohibits all forms of non-voluntary work, including
forced, compulsory, bonded (including debt bondage) or indentured labor;
involuntary or exploitative prison labor; slavery or trafficking of persons.
Regarding the minimum employment age, we follow the principles of the UN Global
Compact and the conventions of the International Labor Organization (ILO).
The topics of forced or compulsory labor and child labor are also included in thedormakaba supplier sustainability engagement program and have been identified assalient issues in the company’s human rights due diligence process. The potential
impact on these issues exists primarily in the upstream value chain and not indormakaba operations. These topics are therefore included in the frame of thecompany’s human rights roadmap with planned activities to increase value chaintransparency, such as our cobalt traceability efforts.

••→ SR 2021/22
Supplier
Sustainable
Development→ SR 2021/22
Human Rights

Labor Principles
Principle 3:
Businesses
should upholdthe freedom of
association andthe effective
recognition of theright to collective
bargaining

Principle 4:
the elimination of
all forms offorced andcompulsory labor
Principle 5:
the effective
abolition of child
labor

•
•
•

→ Modern
SlaveryStatement
2021/22→ Code ofConduct→ Supplier
Code of
Conduct

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 2021/22

Principle 6:
the elimination of
discrimination in
respect of
employment andoccupation

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•

•
•

•

dormakaba is committed to fostering a diverse and inclusive workforce that reflects
the varied markets in which it operates. The Group-wide Code of Conduct (CoC)
defines the principles of collaboration, which are binding for all employees. This
includes the declared aim of dormakaba to avoid discrimination for reasons of age,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
protected status under local law.
All potential complaints can be addressed with the supervisor, the supervisor’s
manager, a member of the Executive Committee, Segment HR, Group HR or theCompliance 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 inAustralia, 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 theCompensation 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
2021/22 included, among others:o
We acquired the Real Living Wage certification for our UK entity. This
commitment covers 594 headcounts and 86 contractors.
odormakaba became a signatory to the UN Women's Empowerment
Principles (WEPs), which strengthens our commitment to contributing to
the UN Sustainable Development Goals and to empowering our
employees, so that they can unlock their full potential, regardless of theirgender.
o
In the UK, we have launched a pilot for attaining an EDGE gender equality
certification.
oFemale employees across the globe took part in events to grow anddevelop themselves, for example in the Female Leaders Network in the
Region Europe & Africa, or in the Project T.E.L.A. (Talenti rosa,
Empowerment e Lavoro Agile - in English: Female Talents,
Empowerment, and Smart Working) in Italy.
oWe established the Women’s Network for the Region Americas and a
network of global Diversity & Inclusion Experts who are responsible toimplement initiatives that further improve the inclusiveness of our culture.
o
We launched a LinkedIn campaign for Diversity Month, spotlighting
dormakaba employees from all over the globe and their take on diversity
at dormakaba.
o
In France, local HR started discussions with employees on the topic ofdisability in the workplace, and they also partnered with a specialized
consultancy to analyze current practices and to learn about possible
solutions.

→ Code ofConduct→ SR 2021/22
Fair
Employment→ SR 2021/22
Diversity &Inclusion

Environmental Principles
Principle 7:
Businesses
should support aprecautionary
approach toenvironmental
challenges

•

•
•

•

The Group-wide Environment Directive regulates minimal business standards as
regards the environment for product development and manufacturing and/or service
processes at local level, including pollution prevention, resource efficiency,
hazardous substances, solid waste, air emissions, materials restrictions, water
management, energy consumption, greenhouse gases, product circularity and ecodesign.
We use the latest scientific knowledge to guide a sound management approach, andour emission reduction targets have been validated by the Science Based Targets
initiative (SBTi).
The potentially greatest environmental risks lie in the processes used forelectroplating and surface finishing, painting, melting as well as zinc and aluminum
die casting. These processes are used at 49 of the 100 locations covered in the SR
2021/22.
dormakaba is committed to incorporating the latest product life-cycle approaches
and environmental technologies to continuously advance our product development
and improve our own as well as our customers’ sustainability performance.

→ Directive
Environment→ SR 2021/22
Energy andEmissions→ SR 2021/22
Circular
Economy &Materials

dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com

Page 5 / 7
UN Global Compact - COP 2021/22

Principle 8:
undertakeinitiatives topromote greater
environmental
responsibility•

Certifications are required for some sites based on a priority listing depending onsize, resource consumption and environmental risks. Today, 56% of manufacturing
sites already benefit from environmental standards set forth by ISO 14001 (orsimilar) certification. As of 30 June 2022, 67% of our plants, local assembly centers,
and regional logistic centers have established energy management systems (vs.
21% in the previous financial year).

•Electricity and fuel usage play a crucial role in dormakaba’s operations due to theprocesses involved. Many of the components used in our end-products are
manufactured in-house, in addition to further processing of bought-in parts. Some of
the commodities such as nickel silver are also produced on site, which adds toenergy demand. The total energy consumption was over 254,000 MWh in thefinancial year 2021/22. Electricity and fuels for heating or manufacturing both play a
crucial role in production processes, constituting around 76% of total energy
consumption. The remainder is associated with the fuel consumption of our vehicle
fleet.
In the financial year 2021/22, our scope 1+2 greenhouse gas emissions (GHG)
amounted to about 68,600 tCO2e. 55% were emitted as a consequence of electricity
consumption, followed by heating and vehicle fuel consumption (44%), and volatile
as well as process gas emissions (1%). As part of our commitment to the Science
Based Targets initiative, we carried out a screening and carbon inventory
development of Scope 3 emissions in the financial year 2019/20. The screening
showed that the largest sources of Scope 3 emissions stem from purchased goods
and services (75%) and the use phase of sold products (11%). For the financial year
2021/22, value chain emissions for the use phase of products totaled 263,700 tCO 2e
and for purchased goods and services 868,300 tCO2e.
Climate-related initiatives implemented during the reporting year resulted in total
annual savings of approximately 17,400 tCO2e (over 25% of our Scope 1+2
emissions). Therein, we worked diligently to source renewable electricity whereverfeasible, leading to an emissions avoidance of approximately 17,000 tCO2e. 46.4%of the electricity that dormakaba consumed came from renewable sources.
In the financial year 2021/22, energy saving initiatives were being implemented atvarious sites in the reporting coverage. This work included retrofitting facilities tofeature LED lighting and monitoring systems; upgrading equipment such as air
compressors, air heaters and air dryers; and the optimization of heating and coolingsystems.
Part of our commitment towards a 1.5°C future is to reduce our operationalemissions by 42% by 2030 (baseline 74,770 tCO2e in FY 2019/20). To reach thisgoal, we started a Value Discovery Audit process in partnership with Siemens at 10
of our largest manufacturing sites (Taishan (China), Chiayi (Taiwan), Rocky Mount(USA), Dyersville (USA), Indianapolis (USA), Montreal (Canada), Quebec (Canada),
Melaka (Malaysia), Singapore, and Suzhou (China)). The audit resulted in a
discovered potential reduction of over 4,000 tCO2. To reach our 42% reduction
target, further initiatives are planned to fill the gap, including the electrification of the
fleet, and green electricity projects.
We respect the universal human right to safe and clean drinking water andsanitation. Most of the water consumed by dormakaba’s operations is drawn frommunicipal water supplies and is primarily used for cooling, manufacturing processes(e.g. electroplating) and sanitation. Wastewater is discharged in compliance with thelocal requirements and is treated by specialized third party companies where
necessary. In the financial year 2021/22 we implemented a water treatment plant at
our site in Villa El Salvador (Peru) that collects and cleans water from the production
process. The plant recovers 50% of the water, with projected savings of 1,472
m3 water (during the period April 2022 - April 2023).
An inherent aspect of dormakaba’s production processes is the generation ofdifferent wastes. For each waste type, a specific treatment method is applied.
Approximately 73% of the waste stream is recycled, reused or recovered (including
raw materials and energy recovery).
In the 2021/22 financial year, dormakaba was not subject to incidents of noncompliance with environmental laws and regulations.

•

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•

→ SR 2021/22
Energy andEmissions→ SR 2021/22
Human Rights→ SR 2021/22
Circular
Economy &Materials

dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com

Page 6 / 7
UN Global Compact - COP 2021/22

Principle 9:
encourage thedevelopment anddiffusion ofenvironmentallyfriendly
technologies

•

•

•

dormakaba proactively strives to mitigate environmental impacts of our products,
solutions and services. Quantified disclosures of a product’s environmental impacts
through our entire lifecycle are described according to international standards in theform of Environmental Product Declarations (EPD), which we can develop with ourLife Cycle Assessment Tool. EPDs can help our customers to achieve green
building certifications, such as DGNB, BNB, LEED, and BREEAM, that rate thesustainability of an entire building. dormakaba offers various health-related productdeclarations as well, which transparently account for the materials found in our
products. These are in the form of HPDs or Building Product Declarations (BPDs),
depending on local market requirements. We can provide our customers with about
200 sustainability-related product declarations/certifications, including Cradle toCradle and for recycled content (as of June 30, 2022).
Our digital Product CO2 Inventory Tool provides information on the carbon emissionsof energy-consuming products during their use phase. This supports productdevelopment and optimization activities to create more energy-efficient products. he
Product CO2 Inventory Tool includes the footprint of around 350 products that
consume energy after installation, including those that are battery-operated orconnected to the electricity grid (as of June 30, 2022).
A circular economy provides solutions for some of the key global challenges by
eliminating waste and pollution and circulating products and materials. With the aim
to have all new product developments and optimizations covered by our circularity
approach by 2023, we have started the development of the EcoDesign, Design for
Repair, Disassembly & Recycling guidelines in conjunction with three new productdevelopments in our Door Hardware, Electronic Access, and Data and Entrance
Systems product clusters.

→ SR 2021/22
Circular
Economy &Materials

Anti-Corruption Principles
Principle 10:
Businesses
should work
against corruption
in all its forms,
includingextortion andbribery

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dormakaba believes in a system of competitive free enterprise. The company iscommitted to conducting itself in accordance with all applicable anticorruption,
antitrust and competition laws, and with the dormakaba specific ethical standards
with respect to corruption and bribery [B1, B2]*.
The Group Directive Anti-Corruption and Bribery aims at reducing corruption risks
and provides detailed guidance on how to deal with benefits and, thereby, how tocomply with national and international anti-corruption laws such as the U.S. Foreign
Corrupt Practices Act (FCPA), the United Kingdom Bribery Act (UKBA) [B2].
In addition, Group Internal Audit integrates the Corruption Perceptions Index (CPI)
as one criteria for developing their internal audit plan [B6]. Corruption risks are also
addressed in dormakaba’s risk model as part of the company’s global risk
management process, conducted every six months. The dormakaba Supplier Codeof Conduct additionally addresses the topic of corruption and bribery and sets
expectations of compliance to business partners [B3].
The dormakaba Code of Conduct (CoC) contains standards and rules regarding
bribery and corruption. The CoC is fully supported by the Board of Directors and the
Executive Committee and forms an integral part of the dormakaba management
system [B4].
The CoC is available to all employees of the dormakaba Group in various
languages and in electronic and printed form. When employees join the company,
they confirm in writing that they have received and acknowledge the documents. In
addition, all CoC training options (e-learning and live trainings) have a focus on anticorruption, including how to deal with conflicts of interest, how to seek approval forbenefits, etc. Besides this, an anti-corruption eLearning is also available and had
been completed by 207 employees during the financial year 2021/22. Moreover,
464 employees took part in our live anti-corruption trainings [B5].
The CoC further specifies how employees should manage conflicts of interest as
well as donations and sponsoring. Possible conflicts of interest must be reported tothe supervisor, Human Resources or Group Compliance. The situation must be
resolved in the best interest of the organization based on consultation between theemployee and the supervisor as well as Human Resources. The consultation must
be documented and related summary minutes provided to Group Compliance [B6].
dormakaba has implemented an integrity line (whistleblowing tool), allowing
dormakaba employees and third parties (e.g. customers or suppliers) to submit
notifications about potential violations of laws and threats to our reputation.
The dormakaba whistleblowing tool is available globally 24/7 and is offered invarious languages. Through the whistleblowing tool, 10 incidents have beenreported and thereafter investigated in the financial year 2021/22. Whistleblowers
using the online tool receive a first response within 2–3 days and are provided with

→ Code ofConduct→
Whistleblowing
systemdormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com

Page 7 / 7
UN Global Compact - COP 2021/22

regular updates on their case, if a post-box allowing anonymous communication has
been set up. In 60% of incidents reported, misconduct was confirmed, andappropriate corrective action has been taken. Four incidents remained underinvestigation as at 30 June 2022.[B7].

*all Indicators in [ ] refer to Basic Reporting Elements according to the Reporting Guidance on the 10th Principle.
SR = dormakaba Sustainability Report 2021/22. The dormakaba Sustainability Report covers the period from 1 July
2021 to 30 June 2022, in line with the financial year 2021/22.

dormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com