2023
Sustainability
ReportCONTENTS
3

Editorial
Sustainability Management

Editorial

4

Sustainability Management

12

For Our Environment

13

CO2

20

Circularity

27

Environmental Protection

31

Supplier Sustainability

36

For the People

37

User Health and Safety

40

Sustainable Building

44

Our Culture of Engagement

51

Employee Health and Safety2

Hilti 2023 Sustainability Report55

For Our Society

56

Business Ethics

61

Social Impact

65

About this Report

68

Auditors’ Limited Assurance Report

70 GRI Content Index
75

CONTENTS

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For Our Environment
For the People
For Our Society
About This Report
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Editorial

EDITORIAL
Sustainability Management
For Our Environment
For the People

Dear Readers,

For Our Society

2023 was another exciting year in our sustainability
journey. With the global rollout of our Group Strategy
Lead 2030, sustainability has become firmly anchoredacross our business. We have expanded oursustainability ambitions beyond our own operations bymaking them part of our customer promise with the aimof being our customers’ best partner for productivity,
safety and sustainability. Here are some of thehighlights of what we achieved in 2023 across our threestrategic sustainability pillars: environment, people
and society.
In pursuit of our first concrete CO2 target, we reachedcarbon neutrality within our operations by the end of2023, reducing 60% of our Scope 1 and 2 emissions
compared to a baseline set in 2019. The remaining
40% are offset through projects developed exclusively
for Hilti in collaboration with the Hilti Foundation and an
external partner. The projects have been successfully
implemented and the CO2 savings are being monitored
and verified by external parties. All our projects
undergo third-party verification which is conductedin accordance with either the “Gold Standard” or the“Verra Verified Carbon Standard” for offsetting projects.
While reaching CO2 neutrality within our operations
marks a significant milestone, we have alreadyembarked on the next step of our CO2 reduction

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Hilti 2023 Sustainability Report

EDITORIAL

journey: our path to net zero 2050. In 2022, we
committed to the Science Based Targets initiative,
which engages companies worldwide to significantly
reduce their total carbon footprint. In 2023, we
diligently formulated a comprehensive set of measureslinked with targets throughout the organization, which
we will submit for validation in 2024 to the Science
Based Targets initiative.
Within our circularity program, deemed pivotal forachieving our science-based targets, we expanded
initiatives throughout the cycle. We systematicallyintegrated sustainability into product design and further
expanded tool reuse options to include batteries.
We developed proprietary software that allows us toplug in batteries that have been collected and assess
whether they meet the criteria for having a second
life. These structural developments are represented in
the improvements of our qualitative Circularity Score,
which helps assess the details of circular economy
implementation within our company.
Our commitment to the well-being of our people
remains high. The rollout of our safety mindset
roadmap continued with workshops and communication
measures. These actions supported the reduction of
the lost time incident rate in our own operations by 9%,
having already fallen by 17% in the previous year.

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In terms of societal impact, our ‘Engaged Beyond
Business’ corporate volunteering initiative saw morethan 11,000 team members contributing roughly
72,000 volunteer hours for over 850 social andenvironmental projects. Alongside our team members’
eagerness to make an impact via our corporate
volunteering program, the long-standing social
engagement of the Hilti Foundation demonstrates ourdedication to making a positive impact in the society
we live and work in.
In summary, Hilti’s sustainability journey is marked by
the noteworthy achievements mentioned earlier and aplethora of others that await your exploration within thisreport. As I review the consolidated developments anddata-driven progress of our sustainability program, I am
extremely grateful to our Hilti colleagues, customers
and partners for their continued support on this journey
to make construction better.
Peter Rupp
Head of Corporate Sustainability

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Sustainability
Management
Our purpose, “Making Construction Better”, islinked with our aim to “be our customers’ best
partner for productivity, safety and sustainability”.
Construction is the largest industry globally. About
15 percent of global GDP is generated by construction
and about 10 percent of global employment is inconstruction. Construction covers one of the basic
human needs and touches practically everyone living
on our planet. Construction, however, faces significant
challenges. Amongst others, it is one of the largest
sources of carbon emissions worldwide and is theindustry with one of the highest numbers of workrelated health & safety issues. To overcome thesechallenges, the construction industry is transforming.
Sustainability is becoming an important ingredientfor our customers’ success whilst health & safety ismoving up the agenda.
It is our aim to play a key role in driving thistransformation. Differentiation, direct customer

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Hilti 2023 Sustainability Report

relationships and the trust that our customers put into
our brand make us best positioned to drive this change.
This defines our purpose, “Making Construction
Better”. Better means improved productivity, safety
and sustainability. Our strategic objective – value
creation through leadership, built on differentiation anddirect customer relationships – illustrates our aspiration
to create value for all stakeholders and to make apositive contribution to society.
We want to secure long-term success by valuing
ecological, people and social aspects along witheconomic factors. In 2020, we laid an important
foundation by developing a holistic sustainability
strategy and anchoring sustainability throughout theorganization. In 2021, we extended our sustainability
governance and focused on the implementation

SUSTAINABILITY MANAGEMENT

Editorial
SUSTAINABILITY MANAGEMENTFor Our Environment
For the People
For Our Society
About This Report
Auditors’ Limited Assurance Reportof sustainability in our operations and businessprocesses. In 2022, sustainability became a coreelement of our new Group Strategy Lead 2030.
Since the 2020 financial year, we have voluntarily
reported with reference to the Global Reporting
Initiative (GRI) standards, demonstrating ourgovernance structure, the integration of sustainability
into our corporate strategy and disclosing our
performance in our strategic sustainability pillars
environment, people and society. Our auditor,
PricewaterhouseCoopers AG, has provided limited
assurance on sustainability metrics, such asGreenhouse Gas Emissions, Energy Consumption
and Lost Time Incident Rate, since the 2021 reporting
period. We initiated a project in 2023 to prepare for the
mandatory sustainability reporting introduced by theEuropean Union’s Corporate Sustainability Reporting
Directive (CSRD), starting with the 2025 financial year.
A second project has been initiated in response to
the European Union’s Taxonomy regulation. It aims toidentify and quantify taxonomy-eligible and taxonomyaligned economic activities within the Hilti Group.
We will publish this information as part of our CSRD
reporting also starting with the 2025 financial year.

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Lead 2030

Our Understanding of
Sustainability

Editorial
SUSTAINABILITY MANAGEMENTFor Our Environment
For the People

Environment

For Our Society
About This Report
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UmweltPublication Details

PeopleSociety

MenschenGesellschaft

Securing long-term success througha business strategy that values
ecological, people and social aspects
along with ­economic factors.

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SUSTAINABILITY MANAGEMENTOur sustainability strategy
We strive to become our customers’ best partner forsustainability. This is at the core of our strategy. In
order to achieve that, we are accelerating our existing
activities to make Hilti a more sustainable company
while also increasing our focus on making ourcustomers’ business more sustainable.

We aim to provide more sustainable products to ourcustomers. In order to achieve this, we have a strong
commitment to reduce carbon emissions in ouroperations and our supply chain. We have set our nearterm target to reduce 30 percent in our Scope 1, 2 and3 emissions by 2032, in line with the Science Based
Target initiative (SBTi), and we aim to reach net zero by
2050. We have also expanded our offering to support
building methods with a lower carbon footprint. We
continue to accelerate our investment in circularsolutions that create lower amounts of waste andlower energy consumption. One additional way wesupport our customers is through relevant services

in the product life cycle, like Fleet Management andour repair services. Health and safety complement
our sustainable offering. These help in creating a safe
working environment, an aspiration that extends toour own team members. In everything that we do,
we aim to ensure the highest standards in businessethics, both in our own operations and within the entire
product value chain. To contribute to a better society
beyond our value chain, we aim to create social impact
at scale with our corporate volunteering program
and together with the Hilti Foundation, our integrated
partner for sustainability.

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SUSTAINABILITY MANAGEMENTFor Our Environment
For the People
For Our Society
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Our Global Priorities

Customers
Best partner for:

Hilti:

Environment

PeopleSocietyLow carbon footprint solutions

User health and safety andbuilding safety

Highest standards inbusiness ethics

Lead in employee healthand safety

Create social impact at scale

Circular solutions

Reduce CO2 emissions in line with Science
Based Target initiative
Role model for circularity in our operations

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Hilti 2023 Sustainability Report

SUSTAINABILITY MANAGEMENTOur Materiality Matrix

We have assigned all our material topics to one of ourthree strategic sustainability pillars – environment,
people and society – and have evaluated our
impact on achieving the United Nations Sustainable
Development Goals (see p. 8).

7Hilti 2023 Sustainability Report

SUSTAINABILITY MANAGEMENT

Very highEnvironment

PeopleSociety

For Our Society

CO2
Circularity

Waste

Plastic Consumption
Employee Nutrition
Engagement in Local
Communities… and many more

About This Report

User Health & Safety

Hazardous Substances
LOCAL INITIATIVESSUSTAINABILITY MANAGEMENTFor Our Environment
For the People

GLOBAL PRIORITIESGLOBAL TOPICS

Relevance for Hilti’s Stakeholders

During the development of our sustainability strategy,
we carried out a materiality analysis to identify therelevant topics for our organization. These topics stemfrom initiatives such as the UN Global Compact, theUN Sustainable Development Goals, various studies,and the survey and analysis of responses from bothinternal and external experts and stakeholders. We
evaluated this large number of topics in terms of
their relevance for business success and respective
stakeholders as well as their impact on the environmentand society. While the impact and relevance forstakeholders were assessed by external experts,
we conducted interviews and an internal survey
regarding business relevance. The results are part of
the foundation for the topics that are material to ourcompany. We have grouped the topics according totheir relevance into “Global Priorities” and “Global
Topics” (see illustration on the right). The engagementof our team members at a local level plays a central
role in the implementation of our sustainability strategy.
Accordingly, the global priorities and global topics aresupplemented by numerous local initiatives.

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Building Safety

Contaminant Emissions
Water Efficiency

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Employee Health & Safety

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Social Impact

Supplier Sustainability
Learning & Development
Work-Life-Balance

Business Ethics
Employee EngagementInclusion &Diversity

High

Materiality assessment

High

Very highImpact and relevance for the long-term success of Hilti

With the adoption of the EU’s Corporate Sustainability
Reporting Directive in late 2022, the concept of double
materiality was introduced. A double materiality
analysis is the process of identifying and prioritizing
sustainability topics from an outside-in and inside-out
perspective. Material topics are those that (may) trigger
material financial effects on our development (outsidein), or through which we (may) have a material impact
on society or the environment (inside-out). This analysis
is required by the CSRD and is an essential first step
towards regulatory compliance. We started our double
materiality analysis in 2023 and intend to finish it by
mid-2024. The analysis is the basis for updating oursustainability strategy and defining the scope of our
future sustainability reporting.

Strategic
action field

Our sustainability results are assessed annually by theinternational, independent sustainability rating agency
EcoVadis, which is recognized as a globally accepted
standard for holistically assessing the sustainability
performance of companies in the categories ofEnvironment, Labor Practices, Fair Business Practices
and Sustainable Procurement. For the third year ina row, we achieved a gold rating and are thereby
ranked among the top 5 percent of more than
100,000 companies evaluated by EcoVadis worldwide.

UN Sustainable Development Goals:
our prioritization

For the People
For Our Society

Environment

UmweltSUSTAINABILITY MANAGEMENT

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PeopleMenschenSociety

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SUSTAINABILITY MANAGEMENTFor Our Environment

Gesellschaft

8

EditorialResponsibilities foraccountable action

EditorialA

SUSTAINABILITY MANAGEMENT

Corporate Sustainability TeamOur Corporate Sustainability Team (A) reports
directly to the CEO. It drives and oversees the global
sustainability program, acts as an interface for all
relevant parties and supports the implementation of
initiatives. Our Customer Sustainability Management
Team has the primary focus of making our customers’
business more sustainable. The team coordinates
all aspects connected to our sustainability offering.
It is anchored in one of our global business units
and acts in close collaboration with the corporate
sustainability team.

orchestrates, integrates, supports

For Our Environment+

Customer Sustainability Management TeamFor the People

coordinates sustainability offeringB

For Our Society
About This Report

Topic responsibles

drive concept development, provide guidance, collect data

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Sustainable Building: p. 40

9Hilti 2023 Sustainability Report

CO2

Circularity

User Health& Safety

Building
SafetyEmployee
Health &SafetySocialImpactBusiness
EthicsSUSTAINABILITY MANAGEMENT

localize, plan, implement

Operational units

Regions/
Marketorganizations

C

We have defined strategic and operational
responsibilities within the organization for all
16 global priorities and topics (B). Furthermore,
we have established responsibilities in the different
organizational units (C) and in corporate functions,to promote a stronger anchoring and exchange of
information within the Group. In all our regions and insome local organizations, sustainability managers
implement our sustainability roadmap locally and act
as the counterparts to the corporate sustainability
team. Furthermore, they act as sustainability
employee engagement managers and ensure
continuous sustainability learning within the region.
Several regional customer sustainability managers
collaborate with the global customer sustainability
team to integrate the existing sustainability offering into
the launch of new products and salesforce training.
This helps to identify and consolidate sustainability
trends and customer needs and to establish trustful,
innovative partnerships for new sustainable solutions
for the construction industry.

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Business
units

PlantsGloballogistics
Service
centers

More

=

D

Sustainability communities

ensure cross-functional implementation into business processes

GlobalTopicsPublication Details

To support the integration of sustainability in thevarious business processes within our value chain, we
have established thirteen sustainability communities(D). Each community is led by an expert in therespective area. The expert involves team members
from across the organization, for example in regularcommunity dialogs and in workshops, and by providing
digital platforms or playbooks.
The Strategic Sustainability Steering Board (formerly
Sustainability Council) is the advisory body for ouractivities. It meets three times a year and provides
strategic advice and support on cross-functional
challenges. It is chaired by the CEO and includes theheads of the two largest regions and business units,
as well as the heads of the legal, human resources,
logistics, manufacturing and communications
departments. In addition, to ensure operationaloversight of initiatives concerning sustainability
data management, steering and reporting, quarterly
Sustainability Project Review Meetings (PRM)
were initiated in 2023. The PRMs are chaired by
the head of corporate sustainability and include thehead of one business unit, as well as the heads ofglobal aftermarket services, controlling, operational
excellence, compliance, and IT.

In dialog with our stakeholders
We put great emphasis on regular communication anddialog with our internal and external stakeholders.
Direct and regular on-site contact with our customers
has always been a distinct element of our businessmodel. Our team members in the field interact withour customers in more than 280,000 individual
contacts each day. In our direct sales model, there
are no intermediaries between our customers andthe end users of our products and solutions. Hilti
supports construction professionals from the planningphase, through consulting and software engineering
applications, to the construction, maintenance,and demolition of a building by supplying tools,
fastening consumables, software and services.
The trades we serve are building & construction,mechanical & electrical engineering, civil engineering,interior finishing, installation, energy & industry,renovation and rental. We aim to have long-term
relationships with our customers in more than
120 countries in which we operate.
Besides the direct contact through our accountmanagers, we also communicate with our customers
on a daily basis via customer service, by phone ande-mail, in Hilti Stores or digitally via our website andsocial media. We systematically ask for our customers’
opinions once a year as part of customer surveys.

We have intensified the exchange with our key
accounts on sustainability-related topics, which isfacilitated by our Customer Sustainability Management
Team, as well as the regional or local customer
sustainability managers.

Editorial

In addition to customers, our team members are
an important stakeholder group. We promote regularexchanges within the workforce not only in thedaily working environment, but also through various
internal media and event formats. We survey our teammembers about their engagement with Hilti in theannual Global Employee Opinion Survey (GEOS),
which also asks team members about their perceptionof Hilti’s sustainability efforts. In the reporting year, ourteam members’ positive perception of the statement“Hilti is a socially and environmentally responsibleorganization” increased by 1 percentage point to86 percent – the fourth increase in four years.

For the People

Additionally, we involve our team members throughevents and dialog. To promote sustainability within
the company, a sustainability learning platform
is available for all team members around the globe.
Besides bringing sustainability knowledge to all teammembers, we want to help them find out how they
can contribute to sustainability individually in theirprivate and professional environment and to enable
them to engage with our customers on the topic. An
integrated and integral part of our practical learning is
our Engaged Beyond Business corporate volunteering
program.
Our Culture of Engagement: p. 44; Social Impact: p. 61

10Hilti 2023 Sustainability Report

SUSTAINABILITY MANAGEMENTSUSTAINABILITY MANAGEMENTFor Our Environment

For Our Society
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We work internationally with many suppliers andbusiness partners. It is important for us to build
partnerships on equal terms and engage in regularpersonal discussions. Our cooperation is based on
the highest ethical standards, which are set out in our
Code of Conduct for Suppliers. Before embarking
on a business relationship with us, suppliers must
contractually agree to follow our principles against
bribery and corruption, the violation of human rights,
and to be in favor of humane working conditions andminimum wages as well as environmental protection
and the correct handling of hazardous substances. In
terms of specific human rights, our suppliers commit,
for example, to eschew slave labor, servitude, forced
or compulsory labor and human trafficking, to pay
minimum wages and not to make use of child labor.
Regular audits are conducted to assess compliancewith our Code of Conduct for Suppliers. We also
work together with various research institutes
and universities and are engaged in sustainabilityrelated associations and working groups, such as
the Conference Board’s Corporate Responsibility
and Sustainability Council, and we are an actively
committed member of the UN Global Compact
Switzerland/Liechtenstein.
Supplier Sustainability: p. 31; Business Ethics: p. 56

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Hilti 2023 Sustainability Report

Sustainability data management,steering and reporting
In 2023, we formed the sustainability data
management, steering and reporting program.
A cross-functional team of experts is working on
streamlining, enhancing and extending the collectionof product and corporate sustainability data toultimately facilitate internal sustainability steering,external corporate sustainability reporting and productsustainability transparency.
To enhance our group steering and complement
our understanding of value creation, we started to
introduce a new metric called Value-to-Society. This
metric assesses our contribution to the environment,
people and society, comprehensively quantified inmonetary terms. We are working on integrating Valueto-Society into our performance management system.
This monetized impact valuation also provides valuable
input to identify material topics as part of the double
materiality analysis under the Corporate Sustainability
Reporting Directive. Starting with the 2025 financial
year, our external reporting will be enhanced
by following the requirements of the European
Sustainability Reporting Standards, which wereintroduced under the CSRD.

SUSTAINABILITY MANAGEMENT

In our commitment to assisting customers in theirjourney toward sustainability, we are enhancing
transparency regarding the sustainability performanceof our products. Throughout the reporting period, we
refined the life cycle assessment (LCA) process for our
products. LCAs serve to illustrate the environmental
impacts of our products and are frequently requested
by our customers in the construction industry.
Additionally, we have expanded the accessibility of
LCAs for our products, now encompassing 40 percent
of our portfolio.

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For the People
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For Our
Environment

Editorial
Sustainability Management
FOR OUR ENVIRONMENT
CO2
Circularity
Environmental Protection
Supplier Sustainability

For the People
For Our Society
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CO2 Neutrality
achieved in own operations(Scope 1 and 2) and business travel

SBTi

Targets set throughout
organization to reduce
Scope 1, 2 and 3 emissions
in line with Science Based
Target initiative

10,000 to
160,000
Increase in number of spare parts
reused in repair in three years

For a Better
ClimateAt a Glance• Achieved carbon neutrality goal within our own
operations plus business travel• First delivery of certified CO2 offsets by own
projects• Commitment to reduce carbon emissions inline with the Science-Based Target initiative,
and to achieve net zero emissions by 2050

Editorial
Sustainability Management
For Our Environment
CO2
Circularity
Environmental Protection
Supplier Sustainability

For the People
For Our Society

CO2

About This Report

In 2020, we set out to achieve carbon neutrality in ouroperations and in business travel by 2023. We reachedthis milestone through emission reduction, replacementof fossil energy sources, our own production of green
electricity and offsetting. Compared to a scenario
without mitigation measures, we saved 60 percent
of CO2 emissions (vs. 2019 baseline) and offset theremaining 40 percent of CO2 emissions with our own
certified offsetting projects. This is an important step
toward our goal of net-zero emissions by 2050, aligningwith the 1.5-degree pathway of the Science-Based
Target initiative (SBTi).
Company Report

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Hilti 2023 Sustainability Report

CO2Management approach

Organizational anchoring

Managing our CO2 emissions holds significance not
only in our day-to-day operations but also for informed
decision-making and shaping our company’s strategic
actions. In 2023, we unveiled our new Group Strategy
Lead 2030, formulating our customer promise aiming
to be the best partner for sustainability by placing
CO2 emissions reduction at the core of our strategic
objectives. Beyond our own operations, we assess
and mitigate CO2 in our value chain both by engaging
with our suppliers and by aiming to be the best
partner for our customers in providing low-emission
construction solutions. We regularly engage with our
relevant stakeholders to ensure that their feedback,needs and suggestions for improvement are given due
consideration.

Our carbon emissions are monitored and managed
by the Corporate Sustainability Team, which reports
to the CEO. The executives responsible for CO2 are
the Head of Corporate Sustainability and the Headof Finance. Furthermore, there are regular exchanges
in several internal online communities, such as
the sustainability in development, sustainability
in facilities, sustainability in transportation andsustainability in procurement communities. These
groups drive initiatives to reduce CO2 emissions,for example by changing our vehicle fleet fromgasoline and diesel engines to electric drives andhybrid vehicles, enhancing the energy efficiency in
our facilities or raising the focus on carbon reduction
within our supply chain. The purpose of these

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Direct and indirect CO2 emissions
incl. business travel in 2023

communities is to share best practices, exchange
experience, establish standardized processes andsupport the development of common environmental
guidelines, helping to decentralize and anchor
environmental protection measures within Hilti’s
business processes.

Scopes 1 and 2

Environmental Protection: p. 27

Energy Logistics Centers

Energy Hilti Stores

2% (2 kt)

1% (1 kt)

Energy Repair Centers

Energy MO Buildings

1% (1 kt)

2% (2 kt)

Energy Plants
3% (3 kt)

97 kt

Fuel (cars)

Scope 322% (21 kt, of which approx. 16 kt flights)

These include emissions from purchased
products and services as well astransport and logistics by third parties.

1

 usiness travel is part of Scope 3 emissions, but is also consideredB
in the climate neutrality target.

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Hilti 2023 Sustainability Report

CO2

We have a group-wide environmental policy in place.
The topic of CO2 emission reductions is anchored inthis policy, which sets the strategic approach to climate
protection. All our plants, our headquarters facilities
and nine of our market organizations are certified forenvironmental management according to ISO 14001.
Moreover, our plants in Kaufering and Nersingen,Germany, as well as in Kecskemét, Hungary, have acertified energy management system in accordancewith ISO 50001.
Environmental Protection: p. 27

69% (67 kt)

Business travel1

Management systems and policies

2023 implementation examples
Our strategy to become carbon neutral in our own
operations, including business travel, in 2023 involves
reducing energy consumption and transitioning
to green energy sources. Consequently, we havemanaged to reduce emissions by approximately
60 percent when compared to a scenario without thesemitigation measures on our 2019 baseline. To address
the remaining 40 percent of emissions, we rely on our
proprietary offset projects.

Editorial
Sustainability Management
For Our Environment
CO2
Circularity
Environmental Protection
Supplier Sustainability

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Reduce

ReplaceOur topmost priority is the reduction of energy
consumption and CO2 emissions whenever feasible.
This objective is addressed through the adoption of
cutting-edge technologies, more efficient equipment,
and behavioral training and adjustments in ourbusiness practices.

In areas where reducing energy consumption presents
challenges, our focus shifts to replacing existing energy
sources with environmentally friendly alternatives.
Since 2020, we have adopted exclusively green
electricity practices on a global scale – either throughprocurement or via our own photovoltaic systems. We
invest in top-tier green electricity certificates that adhere
to the highest standards established by organizations
like EKOenergy and Green-e. Furthermore, we are
actively transitioning to climate-friendly alternatives
for our energy supply wherever feasible, such as the
adoption of district heating systems.

• In the reporting year, we implemented numerous
energy efficiency measures in our existing
facilities via a broad engagement of our teammembers, leading to a significant reduction in energy
consumption. This includes minimizing heating andcooling measures and changing lighting to LEDs.
• When constructing or leasing buildings for our own
operations, we use sustainability principles for
guidance. A notable example is our new production
plant in India which was inaugurated in January
2024. Our aim is to achieve the highest standards,
specifically the gold standards established by
the German Sustainable Building Council “DGNBInternational”, which would make this plant thefirst of its kind in all of India. Our focus on energy
efficiency has allowed us to influence many aspectsof the plant during the planning stage. Consequently,
the plant is projected to require less than 20 percentof the original energy estimate. Additionally, it will
be equipped with a substantial photovoltaic (PV)installation to serve as an energy source.

CO2

Sustainability Management
For Our Environment
CO2
Circularity
Environmental Protection
Supplier Sustainability

CO2 equivalents

For Our Society

in kton
~240

250

200

Carbon neutral

Scope 1, 2 + biz travel

GRI Content Index

60%

reduced150

CO2 Emissions
from all Hilti operations
and business travel

100

CO2 Savings
through business initiatives

2019

About This Report
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195
145

0

Hilti 2023 Sustainability Report

Editorial

For the People

50

15• We aspire to transition our global vehicle fleet tomore sustainable solutions. During the reporting
period, we further reduced emissions for the second
consecutive year and were able to decouple theemissions from the increased vehicle usage. While
the global vehicle supply crisis is causing delays toour ambitious plans, by the end of 2023 we increased
the total number of ordered vehicles to about 6,500,
which represents more than 40 percent of our global
fleet. More than two thirds of ordered vehicles weredelivered and are on the road.

85

92

94

97

2020

2021

2022

2023

40%

offset

CO2 Offsetting
through own projects
COVID Impact

Publication Details

Produce
We are fostering investments in renewable energies by
installing photovoltaic (PV) systems in various locations
worldwide.
• In 2023, we increased the output through our strategic
expansion of PV installations to 9000 MWh. Our
installed PV capacity now covers 6 percent of our
total electricity consumption, which would supply
about 3600 European households for one year. At
our central warehouse in Liechtenstein, we installed
one of the largest PV systems in the country, withan output capacity of approximately 1000 MWh, on
top of the 1800 MWh installed in the previous years.
We are planning to continue to invest heavily in solar
in the future and have already approved a numberof new large installations for 2024: for example,
1300 MWh at our plant in Hungary, and 1600 MWh
at our plant in India.

OffsetBy saving energy and using alternative energy sources,
we can significantly reduce CO2 emissions. To close thegap to zero emissions, we compensate the remaining
amount with CO2 savings elsewhere. In cooperation
with the Hilti Foundation and a renowned external
partner, we have created an exclusive Hilti portfolio ofcompensation projects. We are meaningfully involvedin the development of these projects to ensure that theobjectives pursued are in line with our values and thatthey give back to the local communities.

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CO2• The Cookstoves Project provides rural households
in Kenya with modern and clean methods to cook
food. The project replaces the practice of burning
biomass in open fires and other inefficient cooking
facilities which contribute to indoor air pollution andclimate change. By providing modern and clean
cookstoves, the project helps to significantly reduceenergy consumption, CO2 emissions and harmfulindoor air pollution from smoke emissions. The
roughly 33,000 stoves distributed through the projectwill offset 90,000 tons of CO2 per year. The project
also creates social impact by generating cost savingsfor the families, creating jobs in the area and byhelping people stay healthy.

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CO2
Circularity
Environmental Protection
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For the People
For Our Society• The Biogas Project supports families in Madhya
Pradesh, India, in replacing inefficient cooking
systems with a biogas digester and a biogasbased cookstove unit, which saves firewood andother cooking and heating fuels. Each digester isconnected to an individual house. The biogas is
generated using locally collected organic waste.
Completed during the reporting year, the project
has provided more than 8000 families with digesters,
thereby offsetting 30,000 tons of CO2 emissions.
Besides the positive social impact of generating
jobs, improving health conditions and livelihoods,
the project also helps to reduce deforestation as
firewood is no longer needed.

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We will reduce
our CO2 emissions
in line with the
Science Based
Target initiative
and aim to reachnet zero by 2050.
Commitment to the Science Based
Targets initiative (SBTi)
Achieving carbon neutrality in Scope 1, 2 and in
business travel by 2023 marks an important initial
milestone in our efforts to combat climate change.
We nonetheless recognize the vital importance ofaddressing emissions beyond our own operations. Toalign with the ambitious goals outlined in the 2015 Paris
Agreement, emissions must be reduced across theentire value chain, encompassing Scopes 1, 2 and 3.
We are committed to contributing to this extremely
ambitious endeavor and have therefore pledged toestablish targets in accordance with the Science Based

17

Hilti 2023 Sustainability Report

CO2

Targets initiative (SBTi). We have set our near-termtarget to significantly reduce about 30 percent in our
Scope 1, 2 and 3 emissions by 2032 and we aim toreach net zero by 2050.
To bring the SBTi to life, we estimate an investment of
triple-digit million Swiss francs will be needed over the
next decade to incorporate systematic changes into
our own business processes and to further encourage
our partners to develop in this regard. Decreasing
emissions along the entire value chain will support ourcustomers’ sustainability initiatives and enable us tocontribute to the much-needed transformation of ourindustry.
As illustrated in the table on page 19, the largest
portion of our CO2 emissions originates from thecategory of purchased goods and services (69 percent),
specifically the materials directly integrated into our
products. During the reporting year, the organizational
units responsible for product-related emissions were
engaged in developing their respective CO2 reductionplans. Furthermore, individual CO2 targets weredeveloped in all market organizations. The in-depth
analysis uncovered opportunities for leveraging andachieving CO2 savings, resulting in the implementationof initial measures, such as the sourcing of greener
materials. Furthermore, we have established in-houseprocesses and tools to incorporate CO2 reduction
targets into our product development practices. The
initial pilot projects have been successfully completed
and we are in the process of rolling out these practices
company-wide.

In 2023, we focused on reducing Scope 3 emissions,particularly regarding the transportation aspectsof our global supply chain. In North America, we
optimized our logistics network, reducing delivery
distances and achieving an approximate 3000 ton
CO2 reduction. Additionally, we have the first trucking
routes being converted to more eco-friendly HVO(hydrogenated vegetable oil), which contributes to
the CO2 savings in the logistics area. In the large
Scope 3 area of purchased goods and services, wemade further advancements in data transparency
and are in preparation for raw material changes tomore sustainable variants, which will take effect in
the following years.

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Climate risk management

Measuring our progress

In 2022, we undertook an initial systematic risk
assessment of the impact that climate change has on
our business. In our risk management approach, we
focus on the significant physical and transitory risks
caused by climate change. In addition to this, there arevarious business opportunities, particularly in the realmof developing products, that actively contribute toclimate change mitigation.

CO2 emissions associated with our neutrality goal
(Scope 1, 2 and business travel) increased slightly
compared to the previous year from 94 to 97 kilotons.
This change is attributed to an increase in businesstravel activities as well as increased use of district
heating. During the reporting year, we conductedevaluations and initiated efforts aimed at reducing
emissions related to business travel, with plans forlong-term implementation.

Based on our materiality matrix, and in discussions
with internal experts, we systematically identified
and specified climate-related risks for Hilti. We
looked at physical risks (acute risks, like extreme
weather events, as well as the chronic risk ofincreasing temperatures) for our own operations andthe transitory risk of an increasing carbon price. In
terms of transitory risk, the global development of
the carbon price, which will affect Hilti’s operations
as well as that of our suppliers, was assessed up to2030. With the help of an external provider, we did an
initial risk quantification. This year we further quantified
sustainability-related risks, opportunities and financial
impacts, which is an ongoing project and planned toshow results by mid-2024.
To manage the identified climate-related risks, they
will be integrated into the existing enterprise-wide risk
management structure, which categorizes material
risks for the company in terms of strategy, market,
operational, financial and compliance. These risks
are managed by internal risk owners and our top
management. The integration of climate-related risks
ensures high-level management responsibility andunderlines their materiality.

18

Hilti 2023 Sustainability ReportCO2

Our Scope 3 emissions decreased by 10% percent
in the reporting year, which was largely caused
by lower emissions in the purchased goods andservices category. Besides implementing reduction
measures, the largest driver for the reduction was
our decreased purchasing volume compared to theprevious year. Emissions in the upstream transportationand distribution category decreased for the same
reason significantly besides the measures described
beforehand. Business travel increased slightly, stillcoming back from covid restrictions, whereas the useof products decreased, mainly due to a change in the
product mix. 				in MWh
2021

2022

2023

Change(vs. 2022)

148,112156,175

152,496

–2%

100%

100%

100%

–

Combustibles and fuels

333,581329,355

326,019–1%

District heating

10,233

7,959

17,230

116%

0

240

1,387

477%

Total energy consumption within the organization

491,926

493,249

495,746

1%

Number of employees (headcount)

31,11532,487

34,111

5%

15.8

15.2

14.5

–4%

of which renewable electricity

Sold energy (subtracted)

MWh / employee

Sustainability Management
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Energy consumption

Electricity

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CO2 emissions1

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in t

Scope 1

2021

2022

2023

Change(vs. 2022)

78,96575,87775,242–1%

Scope 2 (market-based approach)

234

181

339

87%

Total CO2 emissions Scope 1 and 2

79,19976,05975,581–1%

Purchased goods and services2

891,370

1,120,741

1,001,345–11%

Capital goods3

85,664

69,14873,166

6%

Fuel- and energy-related activities

19,294

18,871

18,8170%

Upstream transportation and distribution

103,041

109,235

80,597–26%

Scope 3For Our Environment
CO2
Circularity

Upstream

Waste generated in operations

427

805

656

–19%

Business travel4

13,034

17,416

21,06021%

Employee commuting

12,21818,09819,074

5%

Upstream leased assets

991

327

35

–89%

Downstream transportation and distribution5

18,633

9,400

9,187

–2%

Use of sold products6

123,365

152,157

135,572–11%

Downstream

7,047

6,884

7,235

5%

Total CO2 emissions Scope 37

End-of-life treatment of sold products

1,275,084

1,523,082

1,366,744–10%

Total CO2 emissions all scopes7

1,354,283

1,599,140

1,442,325–10%

Total CO2 emissions corresponding to our
CO2 neutrality goal7, 892,23393,474

96,641

3%

Number of employees (headcount)

31,11532,487

34,111

5%

3.0

2.9

2.8

–3%

CO2 emissions

7, 8/ employee

 missions from all greenhouse gases converted into CO2 equivalents
E
2
The 2022 values for Purchased Goods and Services were restated due to more granular material
data being available and an updated Multi-Regional-Input-Output model, increasing the emission
by 57,692t from 1,046,911t to 1,120,741t.
3
The 2022 values for Capital Goods were restated due to an updated Multi-Regional-Input-Output
model, decreasing the emission by 31,449t from 100,597t to 69,148t.
4
The 2022 values for Business travel were restated due to an updated Multi-Regional-Input-Output
model, decreasing the emission by 810t from 18,226t to 17,416t.
5
The 2022 values for Downstream transportation and distribution were restated due to an updated
Multi-Regional-Input-Output model, decreasing the emission by 8,211t from 17,611t to 9,400t.
6The 2022 values for use of sold products were restated due to better data quality,
increasing the emission by 22,032t from 130,125t to 152,157t.
7
The value for 2022 was restated due to single restatements above.
8
Scope 1, 2 and business travel
1

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Hilti 2023 Sustainability Report

CO2

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Doing Morewith Less

At a Glance• Number of tool spare parts reused increased,from 10,000 to 160,000 over three years, as partof global refurbishment program• Iconic Hilti tool cases produced with 40 percent
recycled content in Europe, stemming fromclosed-loop recycling of red material• Proprietary software implemented to assessbattery health for second life options

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CO2
CIRCULARITY
Environmental Protection
Supplier Sustainability• Qualitative Circelligence Circularity Score
improved in the areas of product design,business model and end of life

For the People
For Our Society

CIRCULARITY
The circular economy aims to detach economic
success from the consumption of resources and toensure that resources remain in circulation for as longas possible, preventing the loss of valuable materials.
This approach not only allows for ecological benefits,
but also provides new strategic impulses for business.
Hilti owns the value chain – from product design, to
production, transport, customer contact and end of life.
This gives us the unique possibility to drive circularity
in our industry.

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Raw Materials

Input

CIRCULARECONOMY
Production

Business Modeland Usage
Hilti 2023 Sustainability Report

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End of Life

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Product
DesignOur goal is to leadthe industry incircularity.

• Ensure reuse options for tools and components
which meet our high-quality standards• Increase material recovery in end-of-life recycling
through close collaboration with recycling partners• Provide our customers with full transparency on theircircular contribution.

Management approach

Organizational anchoring

We understand circularity as generating maximum
added value with a minimum use of virgin raw
materials, a concept that includes much more thanmere recycling. Our circularity strategy, completed
in 2020, made us one of the first companies to use
a specific methodology to quantify and track ourcircular progress. The strategy forms the basis for clear
priorities that give circularity even more significance:

The topic of circularity is anchored in our business
units, in production, logistics, our markets and ouraftermarket sales organization, all of which perform
initiatives for improvement. A central project teamin our Tool Services Business Unit consolidates,
challenges and advises operating units on theiractivities. Regular steering committees inform Hilti’s
Executive Board directly on the program’s progressand help to set steering priorities. In 2023, the existing
team, consisting of circularity program manager andcircularity operations manager, was complemented by
two circularity project managers. One project manager
is responsible for structuring and expanding our reuseprogram, such as spare part reuse and tool reuse. The
other project manager works to enable full item reuseas part of our global refurbishment program.

• Institutionalize circularity in supply and design
decisions, from material selection to designing forrepairability and interchangeability• Improve, reduce and reuse packaging of products
and in the supply chain• Further enhance our circular business model of Fleet
Management with tool park optimization and lifetime
extension options

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Hilti 2023 Sustainability Report

CIRCULARITY

How we measure circularity
To advance the measurability of circularity, we were
the first company worldwide to develop and use theCircelligence method, together with Boston Consulting
Group (BCG). We now evaluate the circularity of ourentire product portfolio on a yearly basis in terms of both
quality and quantity. For details on the methodology
used, please visit our 2020 Sustainability Report. We
continue to focus on advancing the measurability ofcircularity for businesses. In 2023, we continued ourcollaboration with BCG and SAP on data automatization,with a focus on data visualization. This project is now
concluded. Circelligence by BCG, available within
the SAP Store, allows companies to create circularity
assessments. Hilti has established a sustainability data
management, steering and reporting program. Amongst
other things, this program aims at establishing a solid
software back end, supporting the automation of ourcircularity data and reporting.
Sustainability Management: p. 4

The qualitative assessment shows the maturity of thecontrol system regarding the latest findings in the fieldof circular economy. Grades range from “A” (circularity
has been implemented in all business areas) to “F” (theactivities and instruments for the implementation of
circularity have yet to be developed). The qualitativeevaluation helps to assess details of circular economy
implementation within a company. Drawing on what
was learned in measuring aspects of circularity, BCG
again adjusted various questions used in determining acompany’s qualitative score in 2023.

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Qualitative Score

Editorial

A

B

C

D

highest score

E

F

Sustainability Management(A = very good / F = insufficient)

For Our Environment

British school grading systemlowest score

2023

The rating is based on the

2022

CO2

Input

A

B

C

D

E

F

C

Product Design

A

B

C

D

E

F

E

Environmental Protection

Production

A

B

C

D

E

F

D

Supplier Sustainability

Business Model and Usage

A

B

C

D

E

F

E

End of Life

A

B

C

D

E

F

E



Business Implementation

A

B

C

D

E

F

D

Collaboration & Ecosystems

A

B

C

D

E

F

D

CIRCULARITY

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In 2023, we improved in three categories compared toprevious years:• Product design: We increasingly implement
circularity in product design, building on our historyof designing for longevity and repairability, and willin the future focus even more on design for reuse.
Together with our targets to reduce our productcarbon footprint, these will be a key focus in the
coming years.

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Hilti 2023 Sustainability Report

CIRCULARITY• Business model: Overall, the full integration oftargets for circular economy into our new group
strategy, with trackers at every level, ensures ahigh level of engagement and action across theorganization. We are running an increasing number ofpilots with customers to test different modes of reusefor our tools. The customer feedback so far has beenvery positive.

• End of life: We significantly improved thetransparency of end-of-life initiatives, including
reuse and recycling. We also expanded the shareof products for which repair and maintenanceservices are available. We are continuing to expand
this transparency through supplier engagement
and reporting, as well as control of our own reuse
operations.

Quantitative Score
Product Design

Input

62% (63%)23% (26%)

CONSUMABLES

Ø 36% (38%)

End of Life

Production

11% (11%)82% (83%)

Business Modeland Usage

3% (4%)

Input

Product Design

28% (28%)

58% (59%)

In the reporting year, the quantitative score for tools
remained at 55 percent while decreasing from 38 to
36 percent in consumables. These changes stem from
improved data quality, which informs the assumptions
that feed the Circelligence methodology. As themethodology adjusted its data source for measuring
the recycled content in steel from 100 percent to
90 percent, our score dropped in the input category.
We consider transparency on environmental initiatives
a key value and a continuous learning journey. We
therefore decided not to restate previous years basedon improved knowledge and data quality.

TOOLS

89% (88%)

Business Modeland Usage

68% (61%)

Previous year figures in brackets
Increase compared to 2022

Decrease compared to 2022
Stagnant compared to 2022

Hilti 2023 Sustainability Report• Input: We increased recycled content in productpackaging for cardboard, paper and polymers.
However, these increases could not compensate
for the changes in data on the recycling rates ofour high-volume steel suppliers. We also increased
the reuse of tools and components to 150 tons ofmaterial, from a previous 120 tons of material.
• Business model: We increased the sales of tools
in our Fleet Management circular business model,
ensuring that more customers have access toour circular value proposition, such as Tool Park
Optimization, contract extension and short-term use
options.
• End of life: The tools’ End-of-Life score experienced
a decline due to better data quality, primarily
characterized by the adoption of updated, often
lower, rates for both internal and external (statistical)
recycling.

CIRCULARITY

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By weight (in t)

2021

2022

2023

Percentage ofrecycled raw­materials(vs. 2022)

Renewable materials(paper, cardboard, wood)

31,61132,22030,157

50% (+2%pts.)

Non-renewable materials

21% (–3%pts.)

Production

End of Life

30% (38%)

Other important developments relevant to the scorederive from the following topics:

Materials used in 2023

Ø 55% (55%)

23

The quantitative assessment provides information on
the implementation status of circularity based on theweight of resources used and ranges from 0 percent(all materials and products are handled in a linear way
at all stages of the value chain) to 100 percent (fullimplementation of circularity). We distinguish between
calculations for tools and consumables, such as
fasteners and other accessories, as the two areas differ
fundamentally.

244,736

255,839

226,992of which steel

152,622

158,197

139,62131% (–4%pts.)of which plastics

17,751

19,77921,15510% (+2%pts.)of which chemicals

0% (0%)

53,46856,21045,695

Products not yet analyzed

7,564

6,552

5,608

Total materials used
(products and packaging)

283,911294,611

262,757

24% (–2%pts.)

2023 implementation examples
Input• Raw material usage:
We strive to minimize the use of virgin materials.
Our products and packaging contain on average
24 percent of recycled metal and plastic content.
• Packaging:
Our approach to sustainable packaging is, first andforemost, to reduce the amount of packaging and,secondly, to increase usage of recycled content andensure recyclability throughout our supply chain. All
these considerations do not deter from the fact that
all our products must arrive safely. Higher fill rates,
bulk packaging and reuse of packaging contributeto this effort. Currently, there are more than 20 active
packaging improvement initiatives in three mainmaterial categories: plastic (single-use plastic andtool cases), paper and cardboard. Some of thehighlights are listed below.

content of recycled material, thus supporting themarket for recycling plastics.
◾
Our iconic Hilti tool cases are produced with
40 percent recycled content of the red material in
Europe, which stems partially from closed-loop
recycling. This means that old Hilti tool cases
serve as material for new Hilti tool cases. We did
extensive testing with recycled plastic from themarket, versus the recycled content of our oldtool cases, and concluded that we can only keep
our high quality with closed-loop recycling where
we can guarantee our own recipe. Closed-loop
recycling also allows us to guarantee supply
and price stability and will become part of ourstandard process in producing tool cases in
Europe going forward.

◾

Cardboard: from 54 to 74 percent
Paper: from 17 to 49 percent• Plastic has certain unique properties, such as
corrosion protection and chemical barrier functions.
Nevertheless, we want to limit its use in single-use
packaging, while ensuring that when it is used, it isrecyclable, reusable or compostable and has a high24

Hilti 2023 Sustainability Report

CIRCULARITY◾

◾

• Paper – throughout 2023, we continued to reduce
the amount of paper and improve the recycledcontent of our printed Instructions for Use (IFUs).
◾
In 2023, all IFUs for our Nuron chargers weresignificantly shortened (from 400 pages to 200) in
the course of a redesign project, which will save
us 60 tons of paper per year.
◾
We are working on identifying high-volume
manuals that will have a significant impact onsize reduction once legislation supports this. In
the meantime, we are increasing the recycledcontent of the paper used for our IFUs, and haveadvanced from 36 percent in 2022 to 49 percent
in 2023.

• We have set ourselves targets on recycled content
per packaging material type and and are striving
towards 100 percent recyclable, reusable orcompostable secondary packaging by 2025. We
have already made good progress on increasing theamount of recycled content from 2020 to 2023:◾

◾

to include other flat inserts currently placed inblister packaging.
We are continuing to switch all clips on ourinserts packaging to a paper-based solution,
which will save us 32 tons of plastic per year
once we have scaled the solution to moreproducts (~2.4 million pieces).
We are switching the transparent part of insert
packaging tubes from PVC (~55 tons per year)
to widely recyclable polypropylene. Goingforward, we plan to scale this solution to all tube
packaging.
We switched from virgin material to 85 percent
recycled content for our HUD anchor plasticbags. This change will save roughly four tons ofplastic material.

◾

We shifted the packaging for most of our cutting
blades from PVC blister plastics to recyclable
cardboard sleeves, saving ten tons of virginplastics per year, and we are scaling this change• Cardboard – we continue to analyze the recycling
content of our portfolio and work together with our
suppliers to improve the recycling content in ourexport and sales packaging.

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Product Design

Production• Technology and design projects:
With our commitment to the Science Based Target
initiative, we are now tackling CO2 emissions beyond
our direct operations. As more than 90 percent of our
Scope 3 emissions are directly related to products,
we began systematically integrating sustainability
into product design and material selection.

• Green electricity:
Since 2020, we have been using 100 percent
green electricity, either generated via photovoltaic
systems or purchased, in all our operations,
including production.

CO2: p. 13• Our development teams continue to identify ways toinclude circularity aspects in their design projects.
One specific example is our Firestop Speed
Sleeve, which was designed to be modular andfully disassembled to allow for multiple use cycles.
More than 90 percent of the components can berecycled, and some component materials werechanged from plastics to organic materials.
Sustainable Building: p. 40• Another example is the next generation of Rotating
Lasers. We have started to design for circular reuseof non-wear parts in multiple product generations.
We intentionally accept higher costs, for example
by selecting more robust connectors. These aredesigned to withstand multiple plug-in and plugout cycles to qualify in future either for spare parts
reuse or circularity in production for upcoming
generations.

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Hilti 2023 Sustainability Report

CIRCULARITY• Water consumption:
We are reducing water consumption and increasingly
moving away from using groundwater in favor of
surface water and runoff.
• Waste production:
We have committed ourselves to disposing zerowaste to landfills. In the reporting year, we went one
step further and are close to being landfill-free in all
our production plants.
CO2: p. 13; Environmental Protection: p. 27

Business Model & Usage• Circular value proposition of Fleet Management:
An important prerequisite for supporting ourcustomers in circularity is our Fleet Management
model. This service model offers customers a longterm usage agreement for our tools while giving us fullcontrol over our products throughout their life cycle.
Fleet Management allows customers to use thelatest generation of tools along with a full suite ofservices covering eventualities like repairs and theft.
All tools should have reached their maximum service

life at the end of their contract period. At that point,
customers can choose to extend the contract, andsimply keep the tool for longer, or upgrade to Hilti’s
latest innovations.
We recognize that unused tools are bad for theenvironment and bad for customers’ bottom
line. Therefore, we offer a professional Tool Park
Optimization service where we propose an
optimally configured tool park based on the individual
needs of our customers. Our new modular platformof Nuron cordless tools integrates a whole suite ofdata collection capabilities, which will enhance ourability to provide insights for customers’ tool needs
based on personalized usage data.
Applying actionable data has also allowed us toincrease the standard duration of many of our Fleet
Management tools in 14 markets, ensuring highperformance for a longer time. We also offer our Fleet
Management customers a flexible solution, Tools
on Demand, which addresses short- and mediumterm tool needs. This service is now available in
27 markets.
• Repair:Hilti tools are built to last and repaired to last longer.
Our global network of more than 70 repair centers,
staffed by more than 800 specialized and trained
technicians, carry out tool repairs locally, where ourcustomers work. Our team members in repair are
also part of product design teams, to bring insights
on repairability into product development.

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• Circularity Report:
We are pioneers in providing transparency to
showcase our customers’ circular contribution ata country-specific and a customer-specific level.
We now have information on collection, reuse andrecycling at country level in 40 markets. In 2023,
we also began offering customer-specific circularity
reports in 29 markets. These show personalized
details on short-term tool use, collection, reuse andrecycling and aim to support customers on theirsustainability journey.

End of Life
• Collection:
Collection is a key step in circularity. Our integrated
business model and reverse logistics experience
allow us to offer free and convenient tool collection
globally. Every year, we collect over one million tools,
batteries and accessories from around the worldthat are part of Hilti’s Fleet Management service, at
no additional cost. We also provide free collection
for purchased and non-Hilti tools. We also offer freerecycling for tools not under our Fleet program,including those from other providers.
• Reuse program:
Our high collection rates enable us to find options
for giving Hilti tools a second life after their initial
contract. We do this at many different levels: Sometools that are the functional equivalents of a new tooljoin our inventory of loaner tools, ensuring the tool
is used longer, meeting our customers’ short-term
needs.
The reuse of spare parts from returned tools is
now a standard operational process in our tool
service centers. Within three years we increased
the number of spare parts being reused from10,000 to 160,000 per year. This initiative saves
about 120 tons of valuable electronics, motors
and rotors per year. We test each part to ensure it
meets our high standards for professional repair
and offer the same guarantee as we would for a
new spare part. Based on the high quality achievedin this reuse initiative, we expanded our efforts toinclude additional components. We have developed
proprietary software to assess battery health. This
software allows us to plug in batteries that have beencollected and assess whether they meet the criteria
for having a second life.

26

Hilti 2023 Sustainability Report

CIRCULARITY

We have started to standardize and scale ourdonation program of returned fleet tools. In 2023,
we donated tools for humanitarian and educational
purposes in 20 countries, for example to help educate
the next generation of construction employees in
Sweden or to support students with special needs
in Italy improving their wood-working skills.
Social Impact: p. 61

Through this set of measures, we managed toincrease the reusage rate of expired tools from
2 to 13 percent in four years, despite more than
60 percent greater volume of expired materials overthe same period. In 2023, we have adjusted themethodology to calculate our reusage rate as part ofour corporate strategy rollout. While we previously
calculated the reusage rate of all collected tools,
we have now adjusted the scope to expired tools.
This also allows us to further drive improvements incollection and widen the scope of reuse of what wealready collect.
• Recycling:
If no reuse option is possible, we work with our bestin-class recycling partners to ensure that all materials
enter proper recycling channels. Given the highpercentage of metals in our tools, over 70 percent of
our tools’ mass can be recycled. In many markets,
our ratios are even higher. Based on the upgradein our external recycling infrastructure in previous
years, we now have better data transparency and arestarting to investigate more options for closed-loop
recycling and improvements in our operations.

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Greater
Resource
Efficiency

At a Glance• 25% reduction of standby electricity throughemployee engagement and increased
awareness in our plant in Austria• Implemented a reusage strategy for PersonalProtective Equipment (PPE) and apparel in ourmarket organization in Italy• Installed oil centrifuges in our plant in

Liechtenstein to significantly reduce oil
consumption

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ENVIRONMENTAL PROTECTION
Within our plants, but also in logistics, repair centersand product testing, we aim to minimize our impact on
the environment and to continuously improve resource
efficiency. Our focus areas are waste reduction, water
efficiency and contaminant emissions reduction, as
well as reducing our CO2 emissions and exploring thefull potential of the circular economy. Besides focusing
on our operative processes, we continuously optimize
our own buildings for environmental performance overtheir life cycle.
CO2: p. 13; Circularity: p. 20

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Organizational anchoring

Management approach

The topic of environmental protection is handled in
our Health, Safety and Environment (HSE) department
under the direction of the Chief Compliance Officer.
We have also appointed approximately 200 HSE
representatives who work in our various plants,
warehouses and repair centers. Furthermore, the topic
of environmental protection is anchored in different
company communities.

In addition to complying with local environmental
protection laws, we have established a standardized
and optimized environmental management system
and a group-wide environmental policy, which
was adapted to reflect our new Group Strategy
Lead 2030, during the reporting year. The policy
comprises, for example, continuous improvements,
data measuring and target setting. We encourage
all team members to measure their daily actions
against the standards described in the policy and todemonstrate a potential for improvement. We also

ENVIRONMENTAL PROTECTION

Sustainability Management: p. 4; CO2: p. 13

raise our team members’ awareness of environmental
protection at Hilti and their individual responsibility
by means of internal training. Beyond mandatory
trainings, we provide training sessions on hazardous
substances and on the proper disposal and recyclingof waste. All our product manufacturing units are
subject to ISO 14001 Environmental Management
System certification. In addition, our developing
and engineering services, marketing and distributionof equipment, tools and fastening solutions for theconstruction industry are ISO 14001 certified. On top of
that, nine of our market organizations maintain a local
environmental certification.
In the reporting year, we passed an externalsurveillance audit for ISO 14001 in the respective
scope without any deviations. Furthermore, an external
service provider trained our internal auditors on
ISO 14001 audits according to the standard, to further
increase our in-house capabilities.
We aim to reduce waste and increase water andenergy efficiency and we work on the corresponding
data management as well as the definition of smart
reduction targets. Hence, we constantly increase themeasurability and accuracy of data on energy, waste,water and contaminant emissions to better track ourprogress and to derive targeted measures that willfurther optimize our resource use. We engage with all
relevant stakeholders, such as our team members andsuppliers, to reduce water consumption and waste andto optimize the use of resources.

We manage the waste generated in our own operations
by working with external service providers who have theappropriate certifications for disposal of the respective
waste types. We have committed to contributing zerowaste to landfills in all our operations long term andare working on different projects to further strengthen
our efforts in this direction. In the reporting year, wemanaged to be landfill-free at all our production plants1.
An overview of our waste by category can be found in
the tables on page 30.
Some of our production processes produce
contaminant emissions. We measure these emissions
at all locations, comply with local statutory emission
requirements and have received the necessary
permits for our operations. Based on our plantspecific environmental matrices, we identify whichemissions we want to initially focus on reducing and/or
eliminating. In each of our plants, we have the expertise
to monitor the emissions and support our agenda
to reduce them. We are working to further reduce
contaminant emissions but are also aware that, in the
future, we will need to find ways and new technologies
to holistically move away from these pollutants.
We mainly use water in our plant operations for several
production steps and we constantly work to reducewater consumption through new technologies andvarious improvement activities, especially keeping
water in the cycle. Almost two thirds of group-widewater consumption is allocated to our plants andjoint ventures, which remain the focus of our activities
to achieve further improvements. According to the“Aqueduct Water Risk Atlas” tool, two of our plants

1

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Hilti 2023 Sustainability Report andfill-free is defined as sending no more than 1 percent of waste to l­andfills andLless than 10 percent of waste to waste-to-energy (incineration).

ENVIRONMENTAL PROTECTION

and joint ventures are in areas subject to “extremelyhigh” water stress; six sites are in areas subject to “high”
water stress. We are working on the respective risk
assessments and are defining and implementing actions
to mitigate the associated risks. We also take the topic
of water scarcity into consideration when defining future
plant operations and planning new buildings. Designingsites and operations for minimal water usage, as wellas implementing rainwater harvesting measures, areintegral parts of this process. Where needed, waterused in our industrial processes is treated in in-housewastewater treatment facilities before it is returned to
the respective wastewater systems. There are legal
standards regarding the quality of effluent discharge
which we fully comply with. Also, we comply with alllegal wastewater limits and strive to go beyond them inthe future. In the reporting year, we began expanding ourplants in India and Hungary. International certifications
from the German Sustainable Building Council
underscore our strong focus on water consumption,
including rainwater harvesting and grey water utilization.

2023 implementation examples• In our plant in Schaan, Liechtenstein, several oil
centrifuges were installed during the reporting year.
With this technology, we can clean the oil comingfrom a converting process. This significantly cuts theamount of new oil that must be added to the process.
During the reporting year, we expanded to five oilcentrifuges in total. These investments enabled us
to reduce oil consumption in 2023 by 20 percent. In
2024 we expect a further reduction to 40 percent.

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• We actively engage our team members in the pursuitof energy and resource reduction. At our plant inThüringen, Austria, the environmental impact of ourplant activities is explained to all team members inyearly town hall meetings which raise awarenessfor the topic of sustainability. Furthermore, teammembers are encouraged to bring in their ideas
to reduce our ecological footprint to the weekly“Hungry Lion” community, where solutions are being
developed together. “Saving Sponsors” in all areas
ensure that every team member has a contact pointand can play an active role in reducing our ecologicalfootprint. Together with “automated reduction”, theseactions led to a reduction of more than 25 percent in
the standby electricity needed during the reportingyear. By involving our team in these initiatives, wecreate a collaborative environment where sustainableideas and contributions are valued.
• Our Market Organization in Italy is taking care of
Personal Protective Equipment (PPE) as well as theapparel of our colleagues. So far, these items havenot been a focus of our recycling strategy. Together
with an external partner, Hilti Italia implemented
a collection and recycling system for both PPE
and clothes. In 2022, in total around 700 PPE kits
(helmets, safety shoes, ear protection, gloves andmasks) were ordered for new team members andfor replacing used items. They are separated andrecycled to sound-absorbing panels or mats forplaygrounds and other products. The initiative started
in our Italian Headquarter and the logistics and repair
center. All Hilti Stores in Italy will be involved nextyear, and the project will serve as a role model for theentire Adriatic region. For the colleagues, it createsa very positive experience to actively contribute toused PPE and clothing recycling.

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Measuring our progress
Waste and recyclable fractions from different materialgroups, especially concrete and metal, are generated
in production and product testing. We have reduced
the amounts of waste from these applications over thelast few years.
Materials containing hazardous substances, such ascobalt in cutting tools, are used in various production
processes. In 2023, 1,390 tons of hazardous waste
were produced in our production processes (see tableon page 30). We aim to reduce their relative usage
and eliminate these substances as much as possible.
As an example, we managed to eliminate hazardous
substances from various diamond core bits.
An overview of water consumption in our plants can befound in the table below. The water we use is drawn
from ground and surface water sources. Over the last
few years, we were able to significantly reduce water
consumption in our plants through different activities
and measures.

ENVIRONMENTAL PROTECTION

Water consumption in our plants

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in m3

Sustainability Management

200,000

150,000

For Our Environment

142,287
117,277

115,971

100,000

CO2
Circularity

50,000ENVIRONMENTAL PROTECTION
0

2021

2022

2023

The data includes the water consumption in our own plants and in all of our joint
venture plants.

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We aim to minimize
our impact on theenvironment andto continuously
improve resource
efficiency.

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Breakdown of total waste by category 1, 2

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in t
Change(vs. 2022)

2021

2022

2023

Total Waste3

25,22426,353

26,2720%Concrete

7,522

6,583

6,160

–6%

6,433

6,268

5,877

–6%

1,252

1,441

1,396

–3%

1,152

1,326

1,390

5%

Metal
Chemical waste

3

of which hazardous3

101

115

6

–95%

Paper

of which non-hazardous

2,951

3,654

2,659

–27%

Plastic

889

1,180

1,059

–10%

Wood

1,385

1,227

968

–21%

Electronic waste incl. batteries

2,715

2,803

3,771

35%

Other

2,077

3,197

4,382

37%

1
2
3

Incl. returned Fleet Management toolsIncreased reporting scope in 2022 compared to 2021; total waste decreased by 2 percent excluding this effectThe 2022 values for Chemical Waste (of which hazardous) were restated by 108t due to more granular data being available,
reducing total Chemical Waste from 1549t to 1441t and Chemical Waste (of which hazardous) from 1434t to 1326t.

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Responsible
Partner

At a Glance• Extended Supplier Recognition Model toadditional business units• Started first initiative with business partner
for technical plastics to reduce productcarbon footprint• Significantly reduced conflict and criticalraw materials usage in cutting and drilling
product lines

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SUPPLIER SUSTAINABILITY
Our global supplier network contributes significantly
to the added value, quality and innovative strengthof our company as well as to its overall sustainability
performance along our value chain. Our relationships
with suppliers, while giving them significant influenceon whether we achieve our sustainability goals, is also
aimed at helping them become more sustainable.

Management approach
We work with roughly 650 core direct suppliers topurchase the material that is directly used in our
products. Approximately 65 percent of these suppliers
are based in Europe, 28 percent in the Asia/Pacific31

Hilti 2023 Sustainability Report

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region and 7 percent in the Western Hemisphereoutside Europe. We procure more than 42 percent ofour direct purchase volume locally in the regions where
products will eventually be sold.
The principles of collaboration with our direct suppliers
are regulated in our Code of Conduct for Suppliers, whichmust be contractually agreed to by all suppliers before
we embark on a business relationship. Alternatively,
suppliers may have their own established principles
or codes that meet our requirements. These include
principles against bribery, corruption and the violationof human rights, and in favor of humane working
conditions and minimum wages, as well as the correct
handling of hazardous substances and environmental

About This Report

protection. In terms of specific human rights, oursuppliers commit, for example, to eschewing slavelabor, servitude, forced or compulsory labor and humantrafficking, to pay minimum wages and not to make useof child labor.
The Hilti Code of Conduct, specifically the sections
on human rights and the environment, as well as theProhibited Practices Policy, which includes theAnti-Corruption, Anti-Money Laundering, Anti-Fraud
and Anti-Bribery Policies, must be observed whensourcing decisions are taken. All Hilti team members
working in sourcing and in purchasing-related functions
are responsible for complying with the policy, theCode of Conduct and any supplementary policies,

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instructions and guidelines. To ensure this policy’scorrect application, we are training our internal supply
community on sustainable sourcing. In addition, we
have systematically introduced mandatory e-training to
educate the supply community on (product) compliance
topics related to procurement.
Our standard supplier assessment processincorporates sustainable sourcing principles as afundamental component. To uphold our supplierstandards, our Code of Conduct for Suppliers
stipulates a risk-based approach, and we haveestablished Sustainable Sourcing Policies for both direct
and indirect material sourcing. Since 2018, we have
implemented a multi-factor, risk-based assessment
for all direct materials suppliers. We are ensuring athorough risk assessment through third-party solutions
such as Integrity Next (self-assessment) and PreWave(external 360° assessment). To ensure compliancewith our relevant standards, our sustainable sourcing
policies also serve as internal guidance, managed byin-house experts responsible for verifying suppliercontract compliance. Additionally, we collaborate with
Bureau Veritas to assess compliance with domestic
regulations and high standards for employee treatment,
including working conditions and safety. Prior toestablishing a new serial supplier, we conduct special
audits which focus on product quality. In cases wherea business partner violates the agreed-upon standards
and fails to demonstrate sufficient improvement, we
terminate the business relationship. Moreover, if there
is a suspicion or indication of a violation of our Code of
Conduct for Suppliers, such as non-compliance with

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local regulations, human rights abuses, or the use ofchild labor, we initiate follow-up actions, either internallyor through Bureau Veritas for ­on-site verification.
During the reporting year, a total of 44 audits wereconducted to assess compliance with our Code of
Conduct for Suppliers. The audit results indicate thatall suppliers performed satisfactorily, and none requireda reassessment.
Business Ethics: p. 56

We are committed to the ten principles of the UN
Global Compact and to respecting internationallyrecognized human rights, as set out in the Universal
Declaration of Human Rights and the Declaration of
the International Labor Organization on fundamental
principles and rights at work, and we are committed
to protecting these rights. We have published modern
slavery statements in accordance with the applicablelegislation, for example under the UK Modern Slavery
Act 2015, and under the Australian Modern Slavery Act
2018. For the purposes of these statements, we haveconsidered the definitions of modern slavery, which
cover various forms of exploitation including slavery,
servitude and forced or compulsory labor; humantrafficking; sexual exploitation and forced marriage;
child labor; deceptive recruiting practices and debt
bondage.
In 2023, we reported for the first time under the
Norwegian Transparency Act. Moreover, we havebegun to publish a declaration of principles according
to the German Act on Corporate Due Diligence in
Supply Chains (LkSG), which will be applicable for ourorganization in Germany in 2024. As global regulations
and supply chain acts continue to evolve, such as
the European Corporate Sustainability Due Diligence
Directive, we keep on proactively preparing for future
requirements.

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Business Ethics: p. 56

The SAP Ariba supplier relationship management
system is the basis for handling all supplier-related
information digitally on one platform. We are alreadyconnected to almost all of our roughly 650 coresuppliers via this system. These core suppliers
handle 99 percent of our total purchasing volumeof direct materials. Our goal is to have the contract
documentation and communication of all supplierson this one platform, including those from whom wepurchase our indirect supplies, such as office supplies
and services. This enables us to document standards,
product compliance statements, agreements and audit
results, helping us in systematically cultivating our
supplier relationships.
The close collaboration with our suppliers enables us
to directly incorporate feedback and common insights.
During the reporting year, we intensified the exchangewith selected major suppliers, conducting workshops
to identify potential product improvements. We started
with an exchange exploring our common sustainability
strategy, our values and goals, and proceeded withdeep dives into the sourcing strategy, elaborating our
expectations towards our suppliers. Whistleblowing
and grievance mechanisms are available via our“SpeakUp” hotline for our suppliers.

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Organizational anchoring

Step 1Our Sourcing Excellence Team is responsible forsupplier sustainability for direct materials. A dedicatedglobal process manager is in place to coordinate
sustainability in our supply chain and product design.
This enables an effective and aligned global approachfor sustainable sourcing and development activities.

In the first step, we focus on creating a high degreeof transparency concerning our business partners.
The goal is to track and manage all product-related
compliance certificates and declarations transparently(e.g. RoHS and REACH). As a result, all companyrelated environmental certificates, the signed Codeof Conduct for Suppliers, the results of our supplieraudits, and external ratings and validated supplier datafrom, among others, Dun & Bradstreet, EcoVadis andIntegrityNext, are on a single platform.

The Global Procurement Indirect Materials function
manages the topic of supplier sustainability forindirect materials. This function is responsible for
ensuring that processes for supplier selection andsupplier relationship management are in place andadhered to. Procurement Indirect Materials drives,
or is closely involved in, successful projects that areat the top of the sustainability agenda for Hilti, suchas global renewable energy sourcing, travel demand
management, offsetting projects for CO2 compensation,
shifting to lower emission vehicles and many more.
CO2: p. 13; Circularity: p. 20

2023 implementation examples
We follow a five-step strategy that gradually raises
our activities to a higher sustainability level. With thehelp of this strategy, we were able to maintain oursustainable procurement sub-score, in the EcoVadis
rating, of 70 out of 100 possible points in 2023, which
is significantly above the average.
Sustainability Management: p. 4

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Hilti 2023 Sustainability Report

SUPPLIER SUSTAINABILITY• We are aware that we currently process various
materials in our products which may originate fromminerals sourced from conflict-affected and highrisk areas. To mitigate associated risks, we ask
our suppliers about the origins of their materials,
and we require them to critically assess their own
supply chains, ensuring that no materials derived
from regulated conflict minerals are present in our
products. In 2023, we instigated a more in-depth
review process for the replies provided by our
suppliers. This was to ensure that the replies werecomplete and compliant with the standards set by
the Responsible Minerals Initiative. It also served
to identify the most concerning suppliers and to
put them at the top of the follow-up list. Within
this scope, we set up an internal risk management
process to contact relevant suppliers who either
did not reply to our inquiries or who provided
incomplete and/or erroneous information. We intend

to significantly reduce the number of incomplete and/or erroneous statements by 2024, and to continue
raising awareness of raw materials due diligenceacross our supply chain. For more information onrisk mitigation measures on minerals from conflictaffected and high-risk areas, refer to the sub-chapter“Raw materials due diligence & supply chain
reliability” below.

Step 2The second step considers the sustainability
assessments and the related key figures of our
suppliers in all procurement processes. Sustainability
assessments, such as those from EcoVadis andIntegrityNext, are part of a bonus-malus system,
which gives advantages to suppliers in the awarding
process if they have proven to be more sustainable.
The assessments deploy a structured and uniform
manner to compare suppliers more transparently andcomprehensively. Sustainability is a central criterion in
the bonus-malus system.
Business Ethics: p. 56• In 2021, we started to monitor the performanceand recognize the efforts of our supply partners in
one business unit via an internally created Supplier
Recognition Model (SRM). In 2022 we beganawarding the top performing suppliers in four
different categories, sustainability being one of them.
In the current reporting year, we started to roll out
the SRM evaluation concept to additional business

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units. We are also improving the SRM by using moredetailed sustainability information on our suppliers,
collected via the IntegrityNext portal. Exemplary
evaluation criteria include information on the
supplier’s energy management and carbon footprint
management.

Step 3After evaluating our entire supplier portfolio, the third
step focuses on sustainability initiatives for individualmaterial groups.
• During the reporting year, we deepened thecooperation with BASF SE, one of our key suppliers
for engineering plastics. Engineering plastics, likepolyamides, are a key pillar in our raw material
portfolio and fully transparent regarding their productcarbon footprints (PCF). Together with our business
partner and based on the current PCF values, we aredefining a road map to convert our entire engineering
plastics portfolio into a more circular and sustainable
one. The road map contains topics related to raw
materials, as well as improvements in production
processes.

Steps 4 and 5
In the fourth step, we have started to systematically
expand our sustainable sourcing practices to include
our sub-suppliers, including the monitoring of theirrespective performance in our sustainability scores
and awarding practices. Finally, the fifth step applies
model-driven sustainability engineering practices
to influence our product design and development
process, further promoting the integration of

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sustainable sourcing and the circular economy. Global
implementation of these practices in our development
processes continues and is driven by a dedicatedprocess manager.
Circularity: p. 20

Raw materials due diligence &supply chain reliability
We are aware that we currently process various
materials in our products which may originate fromminerals sourced from conflict-affected and high-riskareas (CAHRAs). At present, there is no equivalent
substitute for these minerals, the extraction of which
may help finance armed conflicts or lead to politicalinstability, insecurity, widespread violence andprevalent human rights violations in these areas.
To mitigate associated risks, we ask our suppliers
about the origins of their materials, and we requirethem to critically assess their own supply chains,ensuring that no materials derived from regulated
conflict minerals are present in our products. By using
the Conflict Minerals Reporting Template (CMRT),developed and maintained by the Responsible Minerals
Initiative (RMI), we gather information throughout the
supply chain regarding the countries of origin andthe smelters and refiners utilized for processing tin,tantalum, tungsten and gold (commonly abbreviatedas “3TG”). In addition, by using the Extended Minerals
Reporting Template (EMRT) from the RMI, we also gain
clarity on our cobalt supply chain. Both the CMRT and
EMRT standards are designed to be aligned with theOECD Due Diligence Guidance for Responsible Supply
Chains of Minerals from Conflict-Affected and HighRisk Areas.

We have successfully obtained replies from almost
all our relevant suppliers, the vast majority of whom
either declared that 3TG minerals and/or cobalt are
not contained in the products they supply to us or thatany 3TG minerals and/or cobalt have been properly
sourced, as evidenced by an attached CMRT and/or EMRT. Furthermore, we have established a clear
process in which a supplier is contacted directly
through the Sourcing Excellence Team if they do notrespond to our CMRT and EMRT requests, or if therequested CMRT and EMRT have not been completed
correctly and fully.
Beyond the considerations of raw materials due
diligence, another issue of growing concern is supply
chain reliability. Unhindered and reliable access tocertain raw materials is a growing concern across theglobe, as evidenced by the recent proposal for an
EU Critical Raw Materials (CRM) Act, and by similar
initiatives across G20 member states. As part of the
proposal for the EU CRM Act, a list of 36 strategic
CRMs was published which highlighted materials
having a high supply risk and high technologicalimportance. From this list, cobalt, nickel, tantalum andtungsten are worth highlighting due to their relevanceto current R&D activities mentioned below.
Our long-term objective remains to replace all materials
potentially linked to CAHRAs with less problematicones and to reduce the use of CRMs as part of largerscale efforts to align our product designs with ourprinciples of sustainability. Within this scope, we would
like to highlight four current R&D activities.

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First, we recently switched some of the hard materials
used for saw blade applications from traditional
tungsten carbide – cobalt (WC-Co) hard metals totitanium carbonitride (TiCN)-based cermets. Not only
does this lead to a considerable reduction in thecontent of tungsten, cobalt and tantalum, but also toa substantial performance improvement in terms oflifetime, considerably reducing the cost-per-cut for ourcustomers. Our new line of X-Cut circular saw blades,
for thin and structural metal cutting applications
and launched in 2022, already benefits from thissubstitution. We are investigating possible expansion
to other product lines. In addition, we kicked off R&D
projects with academic partner institutions to develop
custom cermets for our applications, thus further
driving product differentiation and sustainable productdesign.
Second, we are conducting an extensive internal
project to reduce, or even obviate, the use of cobalt
and nickel in our diamond inserts. We are investigating
the use of cobalt- and nickel-free metal matrix
composites and alternative thick coatings for these
inserts, while ensuring that their best-in-class cutting
performance remains unchanged. This goes hand inhand with establishing reliable manufacturing process
chains in collaboration with our plant engineeringcolleagues.

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Third, we are actively researching novel alternatives
to traditional tungsten carbide – cobalt (WC-Co)
hard metals for percussion drilling applications incollaboration with academic partner institutions.
Several cobalt-free candidate materials emerged
from a sponsored PhD project, which concluded in
2023, in partnership with the Technical University of
Vienna. These materials are currently being refined incollaboration with external suppliers and will soon entera testing and optimization phase.
Fourth, through our involvement in wider-scale R&D
projects, which are jointly funded by public institutions,by private companies and by industry consortia andtrade associations, we are supporting long-term,
cutting-edge scientific research. The most recent
development is our active involvement in the EU- andindustry-funded “Accelerate the design and insertionof non-CRM hard materials for next generation
extreme applications”, or AIM-NEXT project. It will
focus on establishing new experimental methods andcomputational approaches for the design of tools
without CRMs, such as tungsten or cobalt, which are
currently essential for high-performance applications
like percussion drilling. This 4-year project will kick off
in 2024 and will fund ten researchers at institutions
across the EU. Hilti will host two researchers as partof AIM-NEXT, who will focus on 1) strengthening

the binder phase for percussion drilling applications
without the inclusion of cobalt, and 2) microstructuraldesign for damage-tolerant components exposed towear. Furthermore, our internal experts will play a key
advisory role for other topics within the AIM-NEXT
project in close collaboration with our research andindustry partners.

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For thePeopleEditorial
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User Health and Safety
Sustainable Building
Our Culture of Engagement
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New technology further enhancesuser health & safety#12

Rank among the “World’s
best Workplaces™”-9%

Reduced lost time incident
rate in own operations

Safety at
Construction
Sites

At a Glance

Editorial
Sustainability Management• Launched new cordless tools that help to avoid

For Our Environment• Launched next generation shoulder

For the Peoplerisks of unhealthy fumes or flying sparks

exoskeleton that is easier to wear and adjust• Introduced cordless concrete vibrator thatcomes with ergonomic backpack

USER HEALTH AND SAFETY
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USER HEALTH AND SAFETY
Construction sites remain dangerous workplaces
despite the numerous applicable safety regulations
and the measures and strategies already taken bycompanies that aim to help prevent accidents. We
want to be our customers’ best partner for user healthand safety. For more than 80 years, our products andservices have been making work on construction
sites safer. Our technological innovations support
the protection of users from injuries, accidents anddiseases, such as cuts and silicosis. This begins in thedevelopment process of our products and continues
all the way to consulting and user training.

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Our aim is to be
our customers’
best partner forsafety.

GRI Content Index
Publication Details

Organizational anchoring
User health and safety is deeply incorporated into thestrategy of all our business units. We continuously
evaluate how we can improve existing products,
whether we can extend existing safety solutions to
new product groups and which new solutions arefeasible for increasing health and safety in construction.
Improved safety does not detract from ease of use.
We place a great amount of emphasis on ensuringthat all safety features are seamlessly integrated andcomplement a tool’s performance.

In addition to the business units, the central Corporate
Research & Technology area in Schaan, Liechtenstein,and our Competence Center for Health & Safety
Technologies in Kaufering, Germany, drive innovationin user health and safety. For many years, we havecontinuously examined how to implement innovationsin this context as part of our exploratory technology
development.

How we promote user
health and safety
Our goal is to provide solutions for greater health andsafety for users on the construction site. We intend
to do so with a comprehensive and state-of-the-art
hardware, software and service offering.

Our sales structure of direct customer contact
and feedback from our worldwide repair centersenable us to collect user experiences quickly andcomprehensively, effectively looping this back to
product managers at a regional and global level. Hence,
if complaints indicate injuries or product defects, thisis swiftly noted and brought to the attention of therelevant people who take all the necessary steps to
identify and solve the issue.

Management systems and policies
In the product development process, which
incorporates standards such as the European
Machinery Directive, we assess the ecological andhealth properties of a future product at an early stage.
This assessment includes a variety of criteria, suchas vibration or noise and dust generation. Productdevelopment only enters the next phase if all safetyrelated points have been addressed. This structured
development approach enables products to surpass
regulatory safety requirements.

• Product Safety Technologies:
The launch of our new Nuron battery platform not
only represents the development of new products
and solutions but has also allowed us to extend
current safety solutions to further increase user
health and safety on the construction site, andthereby live up to our aim to be our customers’ best
partner in safety. These solutions include, but are
not limited to:

USER HEALTH AND SAFETYFor Our Environment
For the People
USER HEALTH AND SAFETY

Our Culture of Engagement

Solutions for greater health and safety for users
on the construction site

Employee Health and Safety

For Our Society

Product Safety
Technologies

Ergonomics

Dust Management
Systems

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Hazard Reduction

Fatigue Reduction

Face-2-Face Group Sessions

Hilti 2023 Sustainability Report

Sustainability Management

Sustainable Building

Dust Exposure Reduction

Health and Safety Trainings

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Editorial

Remote sessions

E-Learnings• Sens Tech: a new feature that recognizes if the user
loses control of the tool and automatically shuts it
down.

• Exoskeleton EXO-S: we introduced the next
generation shoulder exoskeleton, which is easier towear and adjust.

• AVR: our Active Vibration Reduction (AVR)
technology reduces vibration and increases working
comfort. It is also available on our Nuron platform,
for example with the TE 2000-22 and TE 60-22.

In addition to DRS systems and vacuum cleaners, theAIC 1000 and 2000 air cleaners further expand ourportfolio for jobsite and worker safety. They help toreduce a worker’s dust exposure by filtering very finedust particles, which are the most harmful to our lungs
and otherwise can remain in the air for several days.
Air cleaners are mostly found on renovation jobsites
where large amounts of dust are created.

• 3D ATC: our Active Torque Control system (ATC)has now been further developed to also recognize
when the tool in question moves away from theworkpiece and shuts off the tool.
• FX 3 Stud Fusion: the cordless stud fusion system
helps to prevent flying sparks and fire hazards. This
cordless welding system works entirely without
heavy gas cylinders, power cords, angle grinders,fumes or light radiation.
• DSH 700-22: battery-powered rear handle cutoff saw for floor-focused tasks – the DSH 70022 gets the same work done as gas cut-off saws
in this class, but without the fumes, noise, extra
maintenance and fuel mix issues.
• SL 10-22 tower light: improved visibility on jobsites
thanks to powerful tower light with 360° lightcoverage for cordless, indoor jobsite illumination.
• Ergonomics:
We work on solutions that automate the workplace,and that enhance ergonomics to ease repetitive anduncomfortable tasks that stress the user’s body. In
the current reporting year, we launched the following
new products:

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has had its own dedicated Dust Lab since 2008. This
is where our experts investigate and evaluate solutions
to effectively minimize dust. In the development,
we focus on optimizing the entire system, from dust
extractor to dust shroud and power tool. Our Dust
Removal Systems (DRS) help to remove dust at
the source and efficiently collect it with the help of
powerful vacuum cleaners, such as the VC 10-22.

• NCV 10-22 concrete vibrator: highly versatilecordless concrete vibrator with an ergonomic
backpack minimizes set-up time and potential work
interruptions.
• Dust Management Systems:
Dust is omnipresent at construction sites. Due to theirsmall size, dust particles may stay in the air for a longtime and penetrate deep into a worker’s lungs. Our
focus in developing solutions is to minimize user dust
exposure while enabling maximum productivity.
In 1995, we launched the first tool on the market tohave an integrated dust extraction system. Today, up
to 95 percent of our power tools can be used virtually
dust-free. Our Health & Safety Competence Center• Training and advice:
We are dedicated to raising awareness on
construction sites. Hence, our comprehensive
hardware offering to enhance user health and safety
is complemented by a wide range of interactive
training sessions specifically for users. The focusof all our training modules is on risk and accident
reduction according to the STOP method: risk
reduction through substitution as well as technical,
organizational and personal protection measures.
We currently offer more than ten different training
modules, for example in the field of dust or working
with angle grinders that can generate flying sparks,
and are constantly developing our portfolio further.
Our wide range of training courses includes on-sitetraining at a customer’s premises, virtual formats with
our experts and e-learning courses. Approximately
12,000 users were trained in 2023.

Editorial
Sustainability Management
For Our Environment
For the People
USER HEALTH AND SAFETY
Sustainable Building
Our Culture of Engagement
Employee Health and Safety

For Our Society
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Safer andGreener
Construction

At a Glance• Hilti concrete sensors supported reduced

material usage and associated CO2 savings• Fleet Management services enabled Tool Park

Optimization which led to CO2 emissions being

reduced• Hot and cold aisle container, modular support

systems and fire stopping solutions increased
customers’ energy efficiency and safety

Editorial
Sustainability Management
For Our Environment
For the People
User Health and Safety
SUSTAINABLE BUILDING
Our Culture of Engagement
Employee Health and Safety

For Our Society
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SUSTAINABLE BUILDING
New construction projects aim to reduce negative
effects on the environment while also creating a
positive atmosphere for the people who live and workin these buildings. We want to be our customers’
best partner for building safety. Our cooperation withcustomers, universities, research institutes, code
officials and approval bodies has helped to establish
high construction standards and allowed us to makesignificant contributions to increasing building safety.

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Furthermore, we support more sustainable “green
buildings” that are characterized by lower carbon
emissions with higher resource and energy efficiency,
along with the use of renewable and uncontaminatedraw materials. Our aim is to help customers achievethese high standards.

Our aim is to be
our customers’
best partner forsafety.

Management approach

Editorial

In 2023, we carried out many customer meetings
to discuss the prevailing sustainability trends andassociated requirements in the construction industry.
Based on these collaborative efforts, we confirmed
five trends that are important for sustainable building
at Hilti:

Solutions helping to save lives and protect assets

For Our Environment

Better protection against
critical events

Lifetime performance

SUSTAINABLE BUILDING

Seismic
Protection

Fire
Protection

3. Improvements to the health and safety of the people
living or working in the building

Hilti’s solutions provide building owners with anopportunity to decrease their carbon footprint in theconstruction phase and increase energy efficiency
during the operational phase, while giving theirbuildings a healthier and safer environment. Our
products also support our customers in achieving
green building standards. For example, ourEnvironmental Product Declarations (EPD) are issued
by the Institut Bauen und Umwelt e.V., and our Material
Health Certificates are issued by the Cradle-to-Cradle
Products Innovation Institute.

Building safety
Our aim is to be our customers’ best partner for safety.
In order to do so, we have defined two strong pillars

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High-performing
HardwareQuality Installationand ­Documentation

Our Culture of Engagement
Employee Health and Safety

Safer building designs

4. High adaptability to changing environments withminimum environmental impact
5. Data transparency and collaboration with customers
on data transparency

For the People
User Health and Safety

1. Resource efficiency to optimize material usage andreduce waste
2. Energy efficiency to reduce operational emissions

Sustainability Management

For Our Society
About This Report

Training & Consulting

DesignSoftware

Building Information
Modeling Design

Auditors’ Limited Assurance Report
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which stand on a foundation of safer building design:
better protection against critical events, such as fireor earthquakes, and lifetime performance, ensuring
the long-term durability of our solutions.
In the field of seismic protection, we offer solutions
designed to help fasteners, rebar connections, fireprotected penetrations and joints better withstand theimpact of an earthquake. In the area of fire protection,
we offer passive firestop solutions that better enablefire containment, thereby reducing the impact on both
occupants and structure.

The foundation of long-lasting buildings is createdin part by the durable hardware elements placed inthose buildings. We help to ensure the performance of
our fasteners by running long-term testing in corrosive
environments, such as in coastal areas that havefluctuating temperatures and high humidity levels. But a
product’s features, and lifetime performance, can only
be guaranteed if a product is correctly installed. We
have therefore developed systems and services thatallow for high-quality installation, maintenance andcorresponding documentation.

Publication Details

In support of safer building design, our field-basedengineering force consults on critical safety problems
and provides technical assessments, engineering
services and on-site testing during the designand construction phase. We also support generalcontractors in planning their projects more effectively,modeling and calculating safety-critical solutions
directly within the Building Information Modeling (BIM)
methodology.

Organizational anchoring
Improving both the environmental footprint and safetyof a building is the task of our business units. We follow
a structured development process that integrates
security features into our products at a very earlystage. In addition to tests anchored in the guidelines,
we check for a wide variety of contingencies, suchas incorrect product storage and varying installation
conditions. We only market a product once these risk
assessments have been completed. In addition to
our obligation to monitor a product after its launch,
feedback from our customers also plays a key rolein the continuous improvement of our product offering.
Experts in our development teams carry out structured
reviews of customer input, performing additional tests
and site visits if necessary.
To illustrate our commitment to helping our customers
on their journey towards a sustainable future, weestablished a Customer Sustainability Management
Team. The team’s mission is to collaborate withcustomers, raise awareness and provide transparency
on sustainability within the construction industry while
helping Hilti customers achieve, among other things,
low carbon footprint solutions, circularity, building
safety and user health & safety. Furthermore, the teamsupports the organizational transformation towards a

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mindset of sustainability, from design to production andaftermarket service processes.
Sustainability Management: p. 4

Management systems and policies
We partner closely with standardization organizations,
helping to ensure compliance with regulations and theeffective performance of our solutions. We are also
actively engaged in these organizations, such as theEuropean Committee for Standardization, the European
Organization of Technical Assessment and theInternational Code Council. These associations allow
us to strive to develop standards and regulations thatcreate a foundation for both safer and more practicaldesign solutions. We promote these standards andregulations in the markets in which we operate, and weparticipate in public consultations carried out by therespective national committees.

used Hilti Concrete Sensors (HCS) on this project.
Sensor technologies enabled DPR to optimize thecast-in-place concrete on this project, which allowed
the project team to move faster, save money andreduce the CO2 impact of the concrete. An estimated
24 percent cement reduction was achieved throughthe strategic selection of concrete mixes and theintegration of the HCS solution. These sensors offer
vital data on concrete maturity and timeline, aiding
DPR in selecting the most suitable mix for theirproject and avoiding waste.

Sustainability Management
For Our Environment
For the People
User Health and Safety
SUSTAINABLE BUILDING
Our Culture of Engagement
Employee Health and Safety

For Our Society
About This Report
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2023 implementation examples

GRI Content IndexE xplore how we help our customers to reach their sustainability
goals in our 2022 Company Report• Concrete Sensor: DPR Construction is a generalcontracting firm in the US. At DPR, project teams
typically place high value on accomplishing projects
on time and on budget. This is why DPR decided touse concrete sensors for the delivery of the Granite
Southlake building that won the Outstanding Buildingof the Year award in 2022. This project poured
4540 cubic yards of concrete for elevated decks
in the summer in Texas. As concrete cures, heat is
generated, and large structural elements get hot.
To measure the in-place concrete temperatures andestimate in-place concrete strength, DPR’s team

Editorial

Publication Details• Doing more with less: Benelmat is a construction
equipment rental company, part of the CFE group,with headquarters in Belgium. The CFE grouphas sustainability and innovation at the heart oftheir activities, principles that Benelmat put into
practice when providing on-site assistance during
construction and renovation. Benelmat reached out
to Hilti in order to improve the sustainability value
proposition of their small equipment fleet. Thanks
to Hilti’s Tool Park Optimization service, Benelmat
was able to reduce their small equipment park from1200 tools, batteries and chargers to little more than700. This switch resulted in savings of 20t CO2 or
40 percent of Benelmat’s emissions from power tools
used during building construction and installation.
• Resource and energy efficiency: Telia Helsinki
Data Center is the largest open data center in
the Nordics. Telia Helsinki Data Center provides
secure data center and infrastructure services
for both Finnish and international companies andorganizations. Telia built a new data center where Hilti
contributed to deliver sustainability, energy efficiency
and safety thanks to our solutions for hot and cold
aisle containment, modular support systems andfirestopping. Hilti modular systems have been usedin the data halls so that the rack aisles can be easily
modified and adjusted to the data center’s needs.
In addition to separating hot and cold air, the Hilti
aisle containment system is designed to support
all cabling, trays and busbars. This multipurpose
application allows the use of less material. Pipes,
ducts and cable penetrations through fire rated walls
require firestops. Hilti speed sleeves are easy toopen and re-seal for future cable penetrations. They
also help with air tightness, contributing to energy
efficiency, which translates into less operating carbon
emission. Hilti solutions contributed to Telia Helsinki
Data Center receiving LEED Gold certification.
Company Report

Responsible handling of hazardous
substances
Health and safety play a central role in our business.
Accordingly, we strive to better protect users of our
products, building occupants and our team members
from hazardous substances that may be present
in some of our products. Part of our sustainability
strategy is thus based on intensifying our efforts to

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avoid using hazardous substances, both to minimize
their environmental impact and to lessen any possible
adverse health effects. We want to reduce their sharein our products across our entire portfolio, for example
in chemical anchors, fire protection products and tools,
as much as is technically possible. Our commitment tohigh performance and quality remains our top priority.
We act in accordance with the safety, product andsubstance compliance regulations that apply in ourmarkets, including the EU Regulation on Registration,
Evaluation, Authorization and Restriction of Chemicals
and the EU Directive on the Restriction of Hazardous
Substances. We monitor regulatory developments
and adapt to new or revised regulations at an earlystage. We already go beyond the legal requirements
regarding the use of hazardous substances in manyof our products and we also require all our suppliers
to disclose their handling of hazardous substances
and to comply with our standards. Every suppliermust complete a chemical checklist, which includes
questions on key product and substance complianceregulations. In addition, our Fastening & Protection
Business Area requests more extensive informationfrom its suppliers when it comes to chemical products.
Our product development process focuses intensely
on eliminating or finding alternatives for hazardous
substances. At an early stage in the process,we systematically examine alternatives for such
substances and their suitability in the product.
We place emphasis on preformed products in fire
protection, for example, reducing the risk that a user
may come into contact with reactive chemicals.
We are continuing our work to reduce the amount ofcobalt in our diamond inserts portfolio by switchingfrom materials containing cobalt to alternative, lesshazardous materials. Our aim remains to remove cobalt

entirely from our top line of diamond inserts by 2030.
Also, to reduce the amount of lead, we switched toalternative, lead-free steel and copper alloys fora number of our components. We will continue withfurther actions towards the reduction of the amount oflead in Hilti components.
Furthermore, we offer preformed fire protection
solutions. These add to our range of preformed
joint solutions, complementing options for interior
finishing contractors, covering both the top and bottomof walls in flat and metal deck construction. Thisapproach allows for the further reduction in the amountof chemicals used in wet application processes,
increasing productivity and safety on the jobsite andallowing for an easy installation system. Even wherecertain fire protection applications cannot be replacedwith preformed solutions, such as our range of cablecoating products, our ethos of protecting environmental
and human health from hazardous substances
continues. We continue to work on replacing hazardous
substances contained in our cable coating materials.
In doing so, we are not only progressing toward safer
products, but also eliminating the need for dangerous
goods labelling and the associated costly special
handling, usage and transportation that were previously
required.
To reduce hazardous substances in our chemicalmortars, we are continuously working to identify andqualify less harmful alternatives and recently revised thecomposition of two of our HIT-HY products. Moreover,
we reached a major milestone in 2022 by introducing
our first inorganic chemical mortar: FP 700 R. This newtechnology has the same fire rating as concrete andis an example of our efforts to provide additional safer
and more sustainable solutions for our customers.

Editorial
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For Our Environment
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Our Culture of Engagement
Employee Health and Safety

For Our Society
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Care and
Perform

At a Glance

Editorial
Sustainability Management• Achieved outstanding result by ranking

For Our Environment• Achieved best-ever employee engagement

For the People#12 among the “World’s best Workplaces™”
score of 78 percent and made it into the top

quartile in our annual Global Employee Opinion
Survey (GEOS)

User Health and Safety
Sustainable Building
OUR CULTURE OF ENGAGEMENT
Employee Health and Safety

For Our Society

OUR CULTURE OF ENGAGEMENTManagement approach

The foundation of our business success is our peopleoriented corporate culture. Our shared values ofcommitment, courage, teamwork and integrity
form the basis for our caring and performanceoriented environment which, in turn, paves theway for the success of our worldwide team. All our
activities are aimed at engaging our team members,
making employee engagement a keystone of ourpeople strategy. Engagement allows us to find greater
meaning in our work and to experience professional
growth while creating an impact and developing
deeper connections. Our focus on diversity, equity
and inclusion helps us to leverage the potential of our
growing global team. These overarching ambitions aresupported by continuous learning and development
and ensuring the well-being of all Hilti team members.
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Hilti 2023 Sustainability Report

We want to be a great employer for everyone,
everywhere, and inspire engaged, inclusive andempowered teams who are passionately driving highperformance. We live our caring and performanceoriented culture every day, act with integrity ineverything we do and show courage to try new things,
practice teamwork and live up to our commitments bydelivering what we promise.
Our ‘people approach’ gives our people ownership for
their development and transparency on the essential
parts of the employee experience at Hilti – thecontribution we make, setting objectives and rewarding
and recognizing the work we do. Feedback andrecognition are a part of our everyday activities. Our
people are empowered to take action now, and forthe future, by frequently discussing their experience

OUR CULTURE OF ENGAGEMENT

About This Reportwith managers and mentors and accessing tools andresources that put success at their fingertips.

Organizational anchoring
The strategic group-wide people approach isdeveloped by Global Human Resources, which reports
to the Executive Board. Our centers of excellenceaddress talent acquisition and management, diversity,
equity and inclusion, learning and development,
as well as reward and benefits. Human resources
teams support the organization – team members
and team leaders – in their personal and professional
development.

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Our People Approach

Management systems and policies

Freq
ue
nt

s
gth
n
re
st

Co

ns
atio
ers
nv

Foc
us
on

FOR EVERYONE,
YER
EVE
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M
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E
GR

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45

RI

NG

AN

hip

DP

Hilti 2023 Sustainability Report

Business Ethics: p. 56

ti o

Ow

nn

ow

Employee
Engagement

Tak

ER FO

in g

N
RM A N CE - O R I E

Ac

TED

OUR CULTURE OF ENGAGEMENT

C

TU
UL

Fair labor relations, respect for human rights, freedomof association and equal opportunities form thecore labor standards of the International Labor
Organization. Our own ambitions exceed these by far.
Our Code of Conduct and our Anti-discrimination
and Anti-harassment Policy are among our key
internal regulations. Our Anti-discrimination and Antiharassment Policy include information about how one
should intervene when team members observe any
type of situation involving discrimination or harassment.
We regularly monitor our processes and guideline
compliance through internal audits and have external
reviews carried out according to recognized standards.
A large number of our organizations worldwide have
ISO 9001 certification, which covers more than90 percent of our team members. This ISO standard
was successfully recertified by the Swiss Associationfor Quality and Management Systems in the reportingyear. Violations of internal or external regulations
are not tolerated. In addition to the respective
team leaders’ and team members’ representatives,contact persons are available in our global and local
compliance organizations.

RE

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Diversity, Equity & Inclusion

GEOS Employee Engagement Score
in %80
top quartile(global)70

norm(global)

75

71.9

64

76

71.5
65

77

77

75

74

67

66

78

77

77

78

68

68

Our
Engagement
Score

60

50

2018

2019

2020

2023 implementation examples
Employee Engagement
Employee engagement is at the heart of our people
strategy. We seek feedback from our team members
regarding engagement and benchmark ourselves
against other leading companies. To improve, we
regularly collect and implement ideas received from ourteam members. Our annual Global Employee Opinion
Survey (GEOS) provides us with valuable information in
the areas of engagement, leadership, team, organization,
strategy, development and inclusion, to name a few.
We aim to be in the top quartile of all companies in thecomprehensive database of our external provider withrespect to the GEOS Employee Engagement Score.
• In 2023, 91 percent of our team members
participated in the GEOS survey and submitted
almost 15,000 comments, while employee
engagement increased from 77 to 78 percent,our best result so far. Hence, for the first time wewere able to enter the top quartile at 1 percentage

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Hilti 2023 Sustainability Report

2021

2022

2023

point inside the top quartile result. The feedback
has improved across many dimensions, with thebiggest improvements in feeling encouraged tosuggest improvements, feeling supported to engage
in social initiatives and in providing flexibility tobalance personal and professional life. At the sametime, we still have some dimensions with room for
improvement. The true value of GEOS lies in a deep
analysis of what our team members tell us and thendefining action plans to address the feedback.
• We participate in the Great Place to Work®
Institute’s assessment in multiple countries aroundthe world. A company’s final ranking score is largely
based on feedback received directly from teammembers. In 2023, we ranked 12th on the “World’s
Best Workplaces™” list, 8th on the “Best Workplacesin Europe™” list and 17th on the “Best Workplacesin Asia™” list. Also, for the first time ever, we
ranked 24th among the “Best Workplaces in Latin
America™” list. We were also recognized as one of
the best employers in several countries.
C ompany Report

OUR CULTURE OF ENGAGEMENT

Our passionate and inclusive global team isat the core of our success and our caring andperformance-oriented culture. With a global team of
34,000 colleagues, we strive to create an environment
where everyone feels a sense of belonging. In thepast, our efforts were defined through the three
G’s: generation, gender and global. With the launchof our new corporate strategy, Lead 2030, we arebroadening our approach from diversity and inclusion
to encompass equity (DEI), welcoming visible andinvisible diversity, and focusing on embracing diversityof thought.
C ompany Report
To achieve this, we cultivate an inclusive environmentthat mirrors the diverse communities we serve andlive in. Every member is respected and valued fortheir unique qualities and shares the responsibility ofcreating a brighter future, not just for today but for
generations to come.
• To transform our DEI vision into actionable positive
steps, we have launched a global initiative, DEI
diagnostic workshop, to establish a baseline for
DEI within each entity at Hilti and empower eachleadership team to pinpoint DEI blind spots and build
impactful action plans.
• We have an active network of 50 engaged, teammember-led resource groups worldwide known as
Own It! These groups serve as a global communityand champion our DEI initiatives.
• Our yearly employee engagement survey lets us track
our progress on inclusion. This year, we are proud toreport that we have remained in the top quartile andhave an inclusion index of 80 percent.

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• We are dedicated to increasing diversity within
our workforce. We want to be able to measureprogress and have a clear ambition to increase ourrepresentation of women in our workforce by 1 to
2 percent points year-on-year. This has led to a
current proportion of 28 percent of women in our
workforce.
• We believe in fair end equitable compensation. While
we consider objective criteria, we do not tolerate
discriminatory measures. In 2023, we conducted
our second equal pay analysis, extending our scope
to cover all Hilti colleagues worldwide and focusing
on gender in all markets and on ethnicity in themarkets where the data was available. The results
have placed us on par with other highly regarded
multinational organizations. Overall, Hilti’s global
equal pay gap is 2.46 percent, with our largest
entities having a gap below 2 percent, and we areclosely examining any individual disparities andtaking proactive steps to rectify them.

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Learning & Development
Developing our people is a primary focus and one of
our core competencies. Our learning portfolio includes
both user-generated content and formal learningjourneys to convey performance-based knowledge
and application, as well as a predominant focus onlearning on the job. The content on our internal learning
platform, which has an average of 61,500 views per
week, is largely written by more than 1,200 teammembers across all functions. More than 1,300 teammembers act as community managers to engage withlearners and ensure the transfer of knowledge.
• By supporting our team members’ development,
we live up to our ambition to promote more than
80 percent of our team leaders from within.
Over decades, the Hilti Group’s success is strongly
connected to our long-term stability in key leadershiproles and succession planning.
• In preparation for the launch of our new strategy,
Lead 2030, we held interactive, company-widetraining sessions for all our team members. Ignite
Lead 2030 is an in-person learning session that gives
team members the chance to explore, understand,discuss and internalize our Lead 2030 strategy.

OUR CULTURE OF ENGAGEMENT• The L&D team partnered with key business areas
to ensure both a change management journey andcompetence across our organization for the mosttransformational product launch in our company’s
history. Our Nuron Learning Journey won two
different 2023 Brandon Hall Group Awards – GOLDfor Best Learning Program Supporting a Change
Transformation Business Strategy, and SILVER forBest Unique or Innovative Sales Training Program.
• In 2023, we ran 57 leaders through a new program.
Leading Leaders prepares our Level 5 leaders forthe additional challenges that they encounter intheir roles. The course included both theoretical andpractical segments, such as leading an organization
through business acumen and developing a strategic
view, eliminating the tendency of leaders to do
too much work themselves, influencing throughnetworking and leading change.
• In 2023, WIN became embedded in every region.
WIN is designed to support new team members
throughout their first year, creating deeper bonds
to Hilti, each other and customers. The WIN model
focuses on prioritizing bonding our team members
to Hilti, helping them to become engaged, confident
and customer-focused account managers.

Editorial
Sustainability Management
For Our Environment
For the People
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Sustainable Building
OUR CULTURE OF ENGAGEMENT
Employee Health and Safety

For Our Society
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Employee Well-being
We understand our team members’ well-being to be
the combination of their physical, mental, financial,social and career well-being. This is vital to deliveringoutperformance.
• During mental well-being week in May 2023, weorganized a series of events around the world, suchas mindfulness sessions, mental health talks andwebinars. This marked the second time a majority ofthe events were made available to our global teammembers. We continue providing one-day “Care andPerform” sessions on the topics of resilience andmindfulness to all our team members around theworld.

• On physical health, each Hilti organization drives
local activities and programs to encourage a focus on
physical health, from health screening (e.g. in the US)
to fitness facilities in our office buildings and healthy
employee nutrition. For example, our staff restaurant
at corporate headquarters features a permanentvegan buffet. To ensure maximum use and sourcingof seasonal and local products, we work with various
local suppliers. To help combat food waste, we havecreated an offering of dishes made from ingredients
which have an extended shelf life. The remaining
organic waste is used in the production of biogas.
Hilti’s “Rote Haube” personnel restaurant in Schaan
is certified according to ISO22.

• We recognize that team members want more
flexibility to work remotely. Lessons from thepandemic have demonstrated the opportunities
flexibility can bring to our company. Last year, allHilti organizations started measures designed tofacilitate flexible ways of working. For example, in
several of our market organizations around the world,
team members now have the opportunity to work atleast half of their weekly working hours from home,provided their tasks allow for this.

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Hilti 2023 Sustainability Report

OUR CULTURE OF ENGAGEMENT

Editorial
Sustainability Management
For Our Environment
For the People
User Health and Safety
Aktueller Stand / Zuordnung
zu Bereichen wird geliefert
Sustainable Building
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Our Global Team in 2023

Employees by gender and management level2021
Executive Board

6

6

6

0%

0

0

0

0%

Male

6

6

6

0%

179

177

180

2%

Female

30

26

25

–4%

Male

149

151

155

3%

5,775

6,373

6,738

6%

Female

1,380

1,621

1,754

8%

Male

4,395

4,751

4,984

5%

0

1

0

–100%

2nd managementlevel

Non-binary
Team members

25,15525,931

27,187

5%

Female

6,873

7,346

7,783

6%

Male

18,277

18,582

19,399

4%

5

3

5

67%

31,11532,487

34,1115%

Non-binary
Total employees
by gender and­management level

New employees by region 2023

NumberNumberEastern Europe /Middle East / Africa

Europe18,2703,457Americas

5,898

34,111

Asia / Pacific

6,486

49

Hilti 2023 Sustainability Report

Eastern Europe /Middle East / Africa

Americas

1,178

3,129

Asia / Pacific

1,245

OUR CULTURE OF ENGAGEMENT

6,176

Sustainability Management
For Our Environment
For the People
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Europe624

2023

Female
1st management
level

Total employees by region 2023

2022

Editorial
Change(% vs.
2022)

Employee by age and management level

Total full-time

2021

2022

2023

Change(% vs.
2022)

Executive Board

6

6

6

0%

25 and under

0

0

0

0%

26–35

0

0

0

0%

36–45

1

1

0

–100%

Non-binary

46–54

4

3

5

67%

of which temporary

55 and above

1

2

1

–50%

1st management
level

179

177

180

2%

25 and under

0

0

0

0%

26–35

4

4

4

0%

36–45

80

68

72

6%

46–54

70

78

76

–3%

55 and above

25

27

28

4%

2nd managementlevel
25 and under

5,775

6,373

6,738

6%

14

11

8

–27%

26–35

1,824

1,973

1,982

0%

36–45

2,387

2,673

2,923

9%

46–54

1,041

1,163

1,220

5%

55 and above

509

553

605

9%

Team members

25,15525,931

27,1875%

25 and under

2,039

2,408

2,664

11%

26–35

10,79011,033

11,331

3%

36–45

6,568

6,762

7,148

6%

46–54

3,377

3,473

3,626

4%

55 and above

2,111

2,255

2,418

7%

Total employee
by age and­management level

31,11532,487

34,111

Total employee retention rate in %
2021

2022

2023

Change(% vs.
2022)

28,30629,31330,538

4%

Female

7,013

7,539

7,994

Male

21,28821,770

5

2021

2022

2023

Female

90.1

90.3

90.6

0.3%pts.

6%

Male

90.4

91.1

91.6

0.5%pts.

22,5404%

Non-binary

100

100

4

4

0%

1,573

1,848

2,109

14%

Total employee­retention rate in %

90.3

90.9

Female

504

643

671

4%

Male

19%

of which permanent

1,069

1,205

1,437

Non-binary

0

0

1

Total full-time

29,87931,16132,647of which permanent

2021

2022

2023

Change(% vs.
2022)

1,090

1,177

1,310

11%

Female

689

749

825

10%

Male

401

428

485

13%

Non-binary

0

0

0

0%

of which temporary

146

149

154

3%

Female

77

62

67

8%

Male

69

87

87

0%

Non-binary

0

0

0

0%

1,236

1,326

1,464

10%

Total part-time

5%

OUR CULTURE OF ENGAGEMENT

0.5%pts.

2022

2023

Total target­agreements

23,68725,14528,045

12%

Female

6,095

6,686

7,689

15%

Male

17,58918,454

20,353

10%

3

1

3

200%

Non-binary
Total ­documented­development­discussions

22,314

21,33525,16618%

Female

5,674

5,684

6,804

20%

Male

16,63915,64818,359

17%

1

3

3

0%

31,11532,487

34,1115%

Non-binary
Total number of­employees

Number of apprentices
2021

2022

2023

Change(% vs.
2022)

383

401

427

6%

Female

110

104

110

6%

Male

273

297

317

7%

Total

Sustainability Management
For Our Environment
For the People
User Health and Safety
Sustainable Building

2021

145

128

164

28%

Female

53

35

46

31%

Male

92

93

118

27%

383

401

427

6%

Total number of­apprentices
Hilti 2023 Sustainability Report

91.4

Change(% vs.
2022)

5%

Total part-time

80 –20%pts.

Number of employees with

New in respective year

50

Editorial
Change(%pts.
vs. 2022)

OUR CULTURE OF ENGAGEMENT
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The TeamCountsAt a Glance• Introduced “accident safety alert” template
to foster learning from incidents within theorganization

Editorial
Sustainability Management
For Our Environment
For the People• Implemented ten Corporate Health & Safety –High Risk Work Standards globally• Lost time incident rate improved by 9 percent

User Health and Safety
Sustainable Building
Our Culture of Engagement
EMPLOYEE HEALTH AND SAFETYFor Our Society

EMPLOYEE HEALTH AND SAFETY
We want to provide our approximately 34,000 teammembers worldwide with the safest possible working
conditions in all areas of activity – in our plants andlaboratories, in logistics, in repair centers, in direct
sales, at offices and, to the extent possible, on thejobsites we visit. Consequently, we aim to create avirtually accident- and injury-free workplace. We focus
not only on the risk of injury to our team members,
but also on their long-term health, counteracting thevarious stresses of everyday working life.
Our Culture of Engagement: p. 44

51

Hilti 2023 Sustainability ReportManagement approach

No Hilti employee should be exposed to dangerous
situations. Team members are instructed to immediately
draw attention to any such situation, stop it and only
continue once it is mitigated. We expressly accept
interruptions to our work processes in this context.
If, despite all precautionary measures, a dangerous
situation or accident occurs, a defined reporting
process is used to investigate, in a structured manner,

EMPLOYEE HEALTH AND SAFETY

About This Report

the factors that led to it and the immediate measuresand longer-term improvements that are necessary toensure that it does not recur across our operations.
This is part of our occupational safety management
system. There are daily exchanges between local
Health & Safety experts and team members across all
hierarchy levels in our production and operating units.
Across the company, we strive to make occupationalsafety a permanent agenda item – we do this with asafety contact concept. We have a safety mindset
road map to drive our Health & Safety management.

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Our goal is tobecome anindustry leader
in employee
Health & Safety.
In the current reporting period, we assessed our
global progress over the last two years with surveys
and external audits. Based on this analysis, we will
review the road maps for all business areas and, in a
subsequent step, update and adapt them. This year’s
Perception Survey marks the completion of the current
control loop that commenced with the Safety Mindset
Initiative, launched in 2021. The increased participation,nearly four times that of 2021, is an explicit indicationof the commitment to this cause. The survey clearlyshows that the presence of safety as a company value,
and the empowerment of individuals to take action on
safety concerns, are core strengths of Hilti. However,the survey also shows the need for ongoing efforts.

We are aware that the level of safety in all areas cannot
be increased through regulations and training alone.
Therefore, we ask all team members to take our safety
mindset to heart and to think and act in a safetyconscious manner according to the maxim “safety iscaring”. Our team leaders have a special responsibility
to foster this mindset and are asked to internalize it andto show their team members a better way to handle
safety issues.

Organizational anchoring
We direct our activities through safety steeringcommittees where leadership members serve as safety
ambassadors. While safety steering meetings takeplace on a quarterly basis, the committees meet every
month. The steering is responsible for controlling the
progress of the work and ensuring the right direction.
The Global H&S Process Manager coordinates theoverarching interaction between the various steeringcommittees.
In addition to their responsibility for compliance withlocal occupational Health & Safety legislation, the maintask of the local H&S teams is to prevent occupational
accidents and work-related illnesses. The teams ensurethat our internal policies, standards and guidelines,
which typically go beyond national legal requirements,
are implemented. As in other areas, we work with acommunity approach to connect colleagues worldwide
and manage a knowledge exchange.
Sustainability Management: p. 4

52

Hilti 2023 Sustainability Report

EMPLOYEE HEALTH AND SAFETYManagement systems and policies
The six occupational Health & Safety principles inour Health & Safety Policy apply to the Hilti Group
worldwide and are based on recognized standards.
The policy discusses the Hilti Code of Conduct
section regarding Health & Safety and reflects on
the Occupational Health and Safety Management
Systems (OHSMS) we use to steer our organizations
worldwide. Different OHSMS are prevalent in different
regions. These include ISO 45001 in Europe and
OHSAS in the USA, as well as other national andindustry-wide systems. The management systems
throughout the Group are therefore similar, but not
identical.
We work with industry-leading providers to gain
a comprehensive picture of the applicable legal
requirements and then provide them in an IT-based
management system to our local organizations. The
management system is used centrally to list tasks andassign and delegate responsibilities to local colleagues.
To ensure that the standards are implemented incompliance with applicable laws, regulations andlicenses, internal and external occupational safety
specialists conduct on-site visits and safety inspectionsat our plants, repair centers and in logistics operations.
The specialists exchange information and experiencesin regular H&S online groups to promote learning fromothers and sharing of best practices.

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Building a strong safety mentality begins with reflection

Editorial
Sustainability Management

Leadership
Starting point
Assessmentof our current
safetymentality• Development ofmanagement systems
according to ISO
standards• ­Assignment ofresponsibilities

1

Behavior• Team leaders
exemplify a ­safetymentality in thecompany• Team members aretrained regularly

MutualCaring2

Engagement• Team members are­actively ­involvedin i­mproving­safety and directly­questioned
about it3

For Our Environment
For the People

ResultFewer
accidents anda strong senseof safety

User Health and Safety
Sustainable Building
Our Culture of Engagement
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2023 implementation examples
Three dimensions are decisive in anchoring the “Safety
is Caring” mentality as an integral part of our Group’s
caring and performing culture: the responsibility of ourteam leaders (leadership), the processes and habits indaily work (behavior), and the transfer of knowledge
and creation of risk awareness (engagement). The
result aims at fewer occupational accidents and an
ongoing journey towards an accident- and injury-freeworkplace.

53

Hilti 2023 Sustainability Report• Development of an accident safety alert:
In the current reporting period, we introduced asafety alert template – which is implemented by the
H&S community. The alert is used to share examples
and experiences from previous accidents or nearmisses, the root causes that were identified and thesubsequent actions that were taken. This enables us
to increase transparency and awareness of accidents
within the broader organization. The alert also fosters
learning and aims to avoid the recurrence of similar
situations and accidents going forward.

EMPLOYEE HEALTH AND SAFETY• Introduction of H&S newsletter:In the current reporting period, the Health & Safety
community in the company’s aftermarket service(AMS) area introduced an H&S newsletter, which
is published monthly. The newsletter consistsof different elements, including an overview ofaccidents, potential prevention measures andmitigation actions that were implemented. It alsoenables us to spread awareness throughout theorganization. In 2023, we saw a significant reductionin accident numbers and a change in the safety
behavior in the AMS centers. Increasing safety anddecreasing accident levels are two examples that
illustrate that the topic is understood and, more
importantly, taken to heart.

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• Implementation of corporate safety standards:
In the current reporting period, we developed andimplemented Corporate Health & Safety Standards
in ten high-risk areas. These standards supplement
our Hilti Health & Safety Policy, and they extend our
Occupational Health & Safety Management System
by detailing the basic Health & Safety rules Hilti
has established for its team members, visitors andcontractors while they are working for Hilti or on
Hilti premises. The common, global set of standards
creates a baseline and gives life to the goal of
creating a harm-free workplace. These standards
have set minimum requirements for mitigating a
range of occupational risks present at Hilti locations
and where Hilti team members do business. Thesestandards also represent our efforts to encourage
occupational safety excellence throughout theorganization. Additionally, we have developed
an implementation guide, a self-assessment anda requirement matrix which is separated into
the different functional areas and shows thecorresponding requirements that must be met.
• Continued rollout of ENGAGE workshops:
In the current reporting year, we continued to reinforce
Hilti’s safety commitment while strengthening thesafety mindset within the company culture. As partof our safety mindset road map, we fully rolled out
and conducted evaluate, name, gather, assess,generate, execute (ENGAGE) workshops, whichwere introduced as pilot projects in 2022. In theseworkshops, we raise awareness in the organization
concerning occupational safety and create or adapt
a corresponding action plan.

54

Hilti 2023 Sustainability Report

Measuring our safety progress
Our main indicator for measuring our safety
performance is the lost time incident rate (LTIR).
It measures the number of accidents that result in
more than one day of absence from work per one
million working hours. In the reporting year, we
further increased the transparency of our data as
described below. In 2023, the overall health and safety
performance at Hilti improved. The total number ofaccidents decreased from 227 in 2022 to 214 in 2023.
The LTIR came down by 9 percent to 3.55. In 2023,
4 accidents with severe consequences occurred. The
main types of work-related injuries and hazards in2023 were cuts, especially to hands and fingers – weare working hard to reduce these further.

Structured reporting is an integral part of measuringsafety progress. For the reporting of work-related
hazards and hazardous situations, we have a processwith clear steps and responsibilities in place. Incidents
or observations must be reported immediately throughour online reporting tool, either by someone observing
the incident or by the employee involved.

Editorial
Sustainability Management
For Our Environment
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User Health and Safety
Sustainable Building
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EMPLOYEE HEALTH AND SAFETYFor Our Society

Employee1 accidents during work

About This Report
2021

2022

2023

Change(% vs. 2022)

261

227

214

–6%

of which with severe c­ onsequences 3

11

13

4

–69%

of which fatal 4

0

0

0

–

Lost time incident rate(based on 1,000,000 hours worked)

4.7

3.9

3.55

–9%

Accident rate with severe c­ onsequences(based on 1,000,000 hours worked)

0.2

0.2

0.1

–50%

Fatality rate(based on 1,000,000 hours worked)

0.0

0.0

0.0

–

Total

2

2

Internal employees incl. contingent workers (2021, 2022)
2
Employees absent from work for at least one day
3
Accidents with subsequent work loss > 60 days
4
Fatal traffic accidents
1

EMPLOYEE HEALTH AND SAFETY

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For Our
Society

Editorial
Sustainability Management
For Our Environment
For the People
FOR OUR SOCIETY
Business Ethics
Social Impact

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Publication Details~72,000
hours spent within our corporate
volunteering program Engaged
Beyond Business

CHF

47.9 million
spent to continue the impactful
work of the Hilti Foundation

Anti-trust campaign
rolled out

CreateTrust

At a Glance• Rolled out anti-trust policy campaign• Launched Company Policy Portal• Revised Fair Competition Policy andrelated guidelines

Editorial
Sustainability Management
For Our Environment
For the People
For Our Society• Revised internal ComplianceManagement Reporting

BUSINESS ETHICS
Social Impact

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BUSINESS ETHICS
Our approach to business ethics is driven by integrity,
a core company value of our caring and performancedriven culture. We not only aim to meet existing
legal requirements, but also want to make a visible
statement for responsible corporate governance. We
have set this ambitious goal realizing that corporate
attitudes and behavior cannot be changed in the shortterm. This involves constantly improving our internalorganization, regularly questioning existing systems
and making changes as required.

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Organizational anchoring

Compliance Management System

Our group has a compliance department headed by the
Chief Compliance Officer (CCO). The CCO has overall
responsibility for compliance management and reports
to the General Counsel, who reports to the CEO. In
addition, the CCO is in direct contact with the Board of
Directors’ Audit Committee.

The CCO is responsible for our Group-wide
Compliance Management System (CMS),
which is based on ISO 37301, ISO 37001 and the
IDW PS 980 audit standard. It also encompasses
our health, safety and environment topics related
to ISO 14001 and 45001. The CMS applies to all
Group companies, addressing all formal complianceobjectives as well as the resolutions of both theBoard of Directors and the Executive Board. It
includes policies, guidelines, regulations, processes,organizational structures, roles and responsibilities,
as well as information on planning and implementing
compliance measures.

The CCO’s responsibilities include monitoring andassessing compliance risks in the context of Groupwide risk management, which is updated annually
together with the internal Group audit.
Information on our Corporate Governance can befound in our 2023 Financial Report.
Financial Report: p. 81

56

Hilti 2023 Sustainability Report

BUSINESS ETHICSWe upholdourselves and theindustry to thehighest standards
in business ethics.
Topics covered in our CMS:

Supplier Sustainability: p. 31• Antitrust Law• Corruption Prevention• Conflict of Interest Management• Anti-Money Laundering• Anti-Discrimination and Anti-Harassment• Product Regulatory Compliance• Human Rights / Prevention of Forced and Child Labor• Export Control and Sanctions Law
The extended responsibility of the compliancedepartment also covers:• Health & Safety and Environmental Protection (HSE)• Data Privacy

57

Hilti 2023 Sustainability Report

The CMS’s internal policies are built upon the Hilti
Code of Conduct for Employees and theCode of Conduct
for Suppliers, further detailed in the
Sustainable Sourcing
Policies and process. Accepting and adhering to theCode of Conduct for Suppliers is a mandatory partof all direct supplier contracts and indirect supplier
relationships based on a risk matrix. In the reporting
year, we significantly enhanced and automated our
supplier monitoring procedures, harnessing a rangeof software tools to comprehensively evaluate andproactively manage supply chain risk data driven fromboth a top-down and bottom-up perspective. We
additionally conduct in-person audits through a thirdparty service provider.

BUSINESS ETHICS

The Code of Conduct training for team members,
initially introduced in 2021 and 2022, has been followedby an anti-corruption (2022) and anti-trust e-learning
campaign (2023), achieving a 90 percent adoption
rate. In 2024, we will be moving to an integrated
e-learning onboarding experience for new colleagues.
We maintain a commitment to continuously review andupdate our Code of Conduct to ensure its relevanceand effectiveness.
We oversee various aspects within the CMS via a newcomprehensive dashboard, encompassing reporting
metrics such as the overall risk score, protective
measures such as training coverage and behaviorinfluencing initiatives, and our incident reporting.
The dashboard is regularly presented to the audit
committee.

How we embed business ethics in our
processes
Comprehensive and target group-oriented compliancetraining concepts ensure that we inform our teammembers about our compliance requirements thatare relevant for them. Besides the online component,
our on-site training and case studies are an
essential part of our compliance training strategy.
The training courses provide a general introduction
to compliance issues and more in-depth handlingof individual aspects. A monthly topic-specificcommunication by the compliance department in
our internal communication platforms, with concise,easy-to-remember content, is intended to increaseawareness of current and relevant compliance topics.
It also serves as a reminder for completed or optionale-learning courses. Furthermore, all new generalmanagers at our local organizations are trained incompliance issues in their area of responsibility as
part of their comprehensive training immediately
after taking the position.
In the context of compliance management, weundertake a great effort to make any conflicts ofinterest transparent. New team members must
disclose all relevant conflicts during the recruitment
and onboarding process and existing team members
must participate in a conflict of interest survey at least
every three years, or more frequently if required by
local regulations.

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All team members are encouraged to prevent andreport violations of legal regulations or internal
guidelines. We have numerous options andcontact channels for trustworthy and anonymous
reporting. Our team members can contact the local
and regional compliance officers, the corporate
compliance department, the CCO and the anonymous
whistleblowing hotline, “SpeakUp”. In the reporting
year, 81 incidents were reported through ourwhistleblower procedure (see graphic below). We
diligently review all reported incidents to ensure thatfacts are clarified and systemic problems or patterns
are identified. We ensure that the rights of both
the whistleblower and the involved person are notcompromised (non-retaliation policy).
Incoming Messages
80
70
60
50

Including other incoming reports, we handled
222 cases in 2023, of which 167 are completed, 52 arestill pending and two are on hold. Of those completed,
84 led to disciplinary measures while 68 have beenclosed without findings. 37 cases were closed withother measures. More than 60 percent of our casereviews are related to minor inter-company matters.

Product Regulatory Compliance
We have positioned ourselves as an innovative,
premium provider in our industry, fostering faircompetition and driving technical progress anddigitalization. The Product Regulatory Compliance(PRC) function, reporting to the CCO, acts
independently of the business units and supports
and monitors the fulfillment of product regulatory
requirements across the various areas of the company.
In this role, the Compliance Officer also provides
legal databases, in addition to those of the technicaldepartments, to ensure timely access to information on
regulatory developments.

40
30

Data protection & cybersecurity

20
10
0

2016

58

2017

2018

2019

2020

Hilti 2023 Sustainability Report

2021

2022

2023

BUSINESS ETHICS

In 2022, we obtained approval from the Liechtenstein
Data Protection Authority for our Binding Corporate
Rules, following the European Data Protection Board’sfavorable opinion and active engagement with all
relevant EU supervisory authorities. Upholding theapplication of these binding corporate rules within Hilti
requires a sustained effort, encompassing training,
audits, updates and meticulous documentation.

Every Hilti Group subsidiary is firmly committed
to upholding the fundamental principles of dataprotection and ensuring the enforceable rights of data
subjects. This commitment serves to provide robust
safeguards for the transfer of personal data outside theEU within the Hilti Group. Our team members receive
data protection training tailored to their specific job
roles and the data protection regulations pertinent
to their respective countries. For instance, in ourSouth African entity, we’ve introduced specialized
training on the Protection of Personal Information Act.
Furthermore, within our software development units,
we have introduced dedicated face-to-face training
sessions that cover data protection.

Editorial

Cybersecurity is a top priority within Hilti and is
supported by various technical and organizational
measures. The Hilti Cybersecurity Policy follows
the latest ISO 27001 standard and provides thebaseline for our IT control catalog. This serves theambition to ensure reliable, maintainable and effective
control management. On top of this, regular audit
engagements are performed to provide an independent
third-party opinion of our control environment, whichis reflected in Hilti’s ISAE 3000 attestation. Beyond
this, Hilti heavily focuses on capability improvements,
such as IT governance, network security andprivilege access management, securing more than
1000 privileged users. We additionally invest in
ongoing security testing capabilities, ranging from
penetration tests and attack simulations to purple/red
teaming exercises to further strengthen our cyberattack resilience. Our Security Operations Center is
continuously increasing their detection use cases,
ensuring transparency across the company against

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Sustainability Management
For Our Environment
For the People
For Our Society
BUSINESS ETHICS
Social Impact

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attacks. Moreover, to further strengthen cybersecurity
awareness within the company, we regularly update
our mandatory cybersecurity training for all teammembers globally and ensure that our colleagues
are aware of current cybersecurity threats. This isadditionally supported by ongoing awareness andphishing campaigns, as well as target group-specifictraining. In 2023, Hilti was not confronted with any
major cybersecurity incident. The impact of continuing
the active management of our external attack surface
is also reflected in our external ratings. In September
2023, we received a BitSight rating that reconfirms
Hilti’s place in the advanced sector.

Human rights due diligence
As a globally active company with complex value
chains, Hilti is exposed to human rights-related
impacts. We strive to avoid adverse human rights
impacts throughout our business operations and in thecommunities in which we engage. We are committed
to the ten principles of the UN Global Compact andto respecting internationally recognized human rights
as set out in the Universal Declaration of Human
Rights and the Declaration of the International
Labor Organization on fundamental principles andrights at work. We are committed to protecting theserights. They are reflected in our Code of Conduct
for Employees, our internal policies and our Code of
Conduct for Suppliers and, from 2023, in our Human
Rights Policy.
Our Culture of Engagement: p. 44

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BUSINESS ETHICS

During the reporting year, we set up an internal
dashboard, creating transparency within our
direct supplier network, on the suppliers and theirsustainability performance. This allows us to ensurethat our business partners respect human rights, which
we screen with the support of different IT tools andthe stipulations of our Supplier Code of Conduct. We
closely monitor supply chain acts around the globe,
such as the German Due Diligence in the Supply Chain
Act and the Norwegian Supply Chain Transparency Act,preparing for the EU Supply Chain Directive. Moreover,
we publish our statement of compliance with modern
slavery reporting requirements in Hong Kong, Australia,
the United Kingdom and California.
Supplier Sustainability: p. 31

We carry out comprehensive due diligence in the formof background checks and screening of third parties.
We screen our direct suppliers with the support of threedifferent IT-supported mechanisms. These screenings
include topics such as ethical behavior, health andsafety management and compliance with human rights.
The related supplier self-assessment has become arequired condition to take up or maintain a business
relationship with Hilti, as described in our Sustainable
Sourcing Policy. We added this policy to our longstanding approach of supplier screening to exclude,for example, sanctioned parties, smelters that are notwhitelisted and suppliers with human rights violations.
A similar screening process is applied to our customers
to comply with export regulations and sanctions
laws. The process is fully automated as it includes,for example, automated shipping restrictions in our

logistics operations, particularly in our warehouses.
We monitor, evaluate and solve incoming alerts daily.
We maintain a specific, stringent policy for business
partner onboarding in China. Regarding our own teammembers, our human resources department carries out
personal background checks in countries which havea high-risk exposure when hiring an external candidate
for critical management positions.
Supplier Sustainability: p. 31

2023 implementation examples• Adoption of Human Rights Policy for Supply
Chain Due Diligence on Human Rights and theEnvironment:
We are vigilant in ensuring that our business
operations and supply chains worldwide reflect our
dedication to ethical practices and respect for humanrights and the environment. We adopted the ‘Human
Rights Policy for Supply Chain Due Diligence on
Human Rights and the Environment’ that details the
Human Rights section of the Hilti Code of Conduct
and environmental aspects, amongst others, toaddress global Supply Chain Acts. Besides our topdown and bottom-up risk assessment procedures,
our due diligence framework is established toprevent or remedy any human rights violations in thecontext of our business operations. Our grievanceprocedures and reporting, as well as training andcapacity building, are also set out in this Policy.

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Sustainability Management
For Our Environment
For the People
For Our Society
BUSINESS ETHICS
Social Impact

About This Report
Auditors’ Limited Assurance Report
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• Anti-Trust Campaign Rollout andPolicy Revision:
We train our team members to enable them tocomply with competition laws. Our mandatorycompetition law training is designed to equip teammembers with the knowledge and skills required fora range of situations, such as market information
gathering and engagement with competitors. The
training emphasizes the severe consequencesof anti-competitive behavior, underscoring thatany short-term gains from such practices pale incomparison with the long-term risks they pose.
In navigating these complex market conditions,a commitment to ethical and lawful conduct isparamount. Furthermore, to further support ourteam members in navigating in the complex market
conditions, we replaced our Antitrust Directivewith the ‘Fair Competition Policy on Anti-Trust andCompetition Law’ in 2023. The Policy details the Fair
Competition section of the Hilti Code of Conduct byoutlining the basic rules on topics such as: generalcompliance with anti-trust laws, participation inassociations, interactions with customers, dominantmarket position or buy-sell relationships with
suppliers.

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Hilti 2023 Sustainability Report

BUSINESS ETHICS• Company Policy Portal:
During the reporting year, we launched our Company
Policy Portal, a user-friendly platform designed toserve as the central repository for all our policies,
guidelines and standards, accessible to all teammembers. This portal offers a host of features
aimed at enhancing the user experience andmaintaining the integrity of our documentation. One
key feature is automated content filtering based onuser profiles and geographical locations, ensuringthat team members are presented with the most
pertinent information up-front. Furthermore, we’ve
implemented permanent links to guarantee that users
always have access to the latest versions of ourdocuments.
To maintain the relevance and accuracy of ourpolicies, we’ve established a continuous validity
workflow. This workflow ensures that both the policy
content and its ownership are regularly reviewed andupdated, with a streamlined process for managerial
escalations and automated removal of unconfirmed
or orphaned policies. Additionally, language versionsof our policies are linked to the primary English
version, making it convenient for users to accessdifferent language versions from a single location.
This comprehensive approach to our Company
Policy Portal reflects our commitment to providing aseamless and up-to-date resource for all our teammembers.

Training sessions completed

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E-learning and workshops

Sustainability Management
For Our Environment

2021

2022

2023

E-learnings of antitrust law1

11,802

13,59128,288Face-to-face workshops on­compliance, incl. antitrust law
and anti-corruption

247

1,159

1,584

Percentage of employees
trained in anti-corruption
policies

46%

96%

90%

–

100%

100%

Percentage of employees
trained in business ethics topics

54%

77%

86%

About This Report

Cumulated number of supplieraudit training participants

312

286

147

Auditors’ Limited Assurance Report2

Percentage of board m­ embers(EB and BoD) trained in­anti-corruption policies

 021 includes numbers of participants who completed general compliance2e-learnings (incl. antitrust), as well as e-learnings focusing on antitrust law
2 
Number of participants in general compliance workshops (incl. antitrust law andanti-corruption), as well as workshops with focus on antitrust law for specificuser groups

For the People
For Our Society
BUSINESS ETHICS
Social Impact

1 

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Helping
Sustainably

At a Glance• 800+ corporate volunteering projects supported
by 11,000+ team members within the corporate

volunteering program Engaged Beyond Business• Vocational training program for Kenya’s construction
sector successfully launched with the first

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Sustainability Management
For Our Environment
For the People
For Our Society

300 trainees hired by 40 companies• Launched ‘Fire Up,’ a streamlined teacher training to

amplify our global Music for Social Change programs• Reached the next level in bamboo construction byintroducing its technology to build larger structures

Business Ethics
SOCIAL IMPACT

About This Report
Auditors’ Limited Assurance Report

SOCIAL IMPACT
Management approach

Wherever our team members work and live, societal
challenges exist. As a group, we want to have asustainable positive social impact at scale.
Our social engagement is based on two pillars:

GRI Content Index

Projects of the Hilti Foundation

Corporate Volunteering Program

to grow and take control of their own lives. To unlock

For decades, Hilti team members have shown great

We believe that every individual should have the ability
the potential that lies within every human being, theHilti Foundation strives to empower people in need

to become economically independent through theirown efforts, allowing them to live better and more

self-determined lives. Together with a network of longstanding partners, the Hilti Foundation develops andimplements programs in clearly defined focus areas,

pursuing sustainable social change for the beneficiaries

and the communities they live in. The foundation’s work
focuses primarily on people living below or just above
the poverty line. Investments in charitable projects
amounted to CHF 47.9 million, supporting around

89 projects in the year under review. By working with
Hilti, our customers contribute to a better world: The

Hilti group donates a substantial amount of its annual
profit to the Hilti Foundation.
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Hilti 2023 Sustainability Report

SOCIAL IMPACT“Engaged Beyond Business”

compassion by contributing to the communities they
live and work in. As a socially responsible company,

Hilti wants to support and encourage team members’social and environmental commitment through theEngaged Beyond Business corporate volunteering

program. The program was launched in 2020 together
with the Hilti Foundation. The goal is clear: to provide
every single Hilti team member worldwide with

opportunities to participate in social or environmental
initiatives beyond business. Already today there issubstantial engagement in many Hilti organizations
happening and we want to pool the energy andreadiness of our approx. 34,000 team members. We areconvinced that every one of us can make a difference,
according to our maxim: “Your engagement is ourmost powerful tool.”

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Non-profit engagement of the Hilti Foundation

By working with Hilti, our customers
contribute to a better future: The Hilti Group
donates a significant amount of its annual
profit to the Hilti Foundation.
Organizational anchoring

Our social engagement in numbers

The Corporate Sustainability Team is responsible
for the Engaged Beyond Business corporate
volunteering program. The Corporate Sustainability
Team coordinates the social engagement of teammembers worldwide at the Group level. It makes
general recommendations to Hilti organizations, steers
local implementation of the targets and facilitates a
structured experience exchange within the Engaged
Beyond Business community.

We want to ensure that our team members’
engagement positively impacts society, and our nonprofit engagement drives sustainable systemic change.
Therefore, defining the right tools to track and measure
any social initiative is an important element.

The Hilti Foundation is jointly funded by the Martin Hilti
Family Trust and the Hilti Group. The Hilti Foundation
Board acts as its governing body with representatives
from both entities. The responsibility for the operational
business lies with the Foundation’s management
team, which also performs an advisory function for the
Corporate Sustainability Team of the Hilti Group.

Engaged Beyond Business1

Hilti 2023 Sustainability Report

SOCIAL IMPACT

2022

2023

Number of employee projects

> 300

637

854

Number of employees­participating

6,000

9,145

11,563

Number of volunteer hours
registered in our system

26,00069,00071,672

Donations raised throughour projects in CHF million

1.3

1.5

1.1

Average volunteer days
per employee

0.1

0.27

0.26

1

62

2021

 ore accurate numbers are displayed starting with the year 2022 due toMimproved data quality

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2021

2022

2023

Number of projects supported

76

88

89

Monetary value of investments in s­ upport projects in
CHF million

31.9

47.1

47.9

For our corporate volunteering program, we have
set the goal of devoting an average of one working
day a year for each team member to social orenvironmental engagement. Overall, this would
correspond to an annual engagement of roughly
160 full-time working years. In 2023, the averagevolunteer days per employee amounted to 0.26 which
is a decrease from 0.27 in 2022. The numbers show
that, while we were able to increase the absolute numberof team members participating in our volunteering
program, the hours volunteered per person decreasedslightly. With our continued focus on the promotionof the Engaged Beyond Business program with adedicated global communication campaign, we aim
to engage even more employees to participate in the
coming years.
We have developed a digital reporting tool that allows
us to provide transparency and track the progress of
our corporate volunteering program Engaged Beyond
Business. The reporting tool is integrated in thecommunity platform project we introduced in 2021.
Since its launch, we have focused on the global rolloutof the community platform and the reporting tool.
This platform is now available in the largest 20 market
organizations in our various regions.

Sustainability Management
For Our Environment
For the People
For Our Society
Business Ethics
SOCIAL IMPACT

About This Report
Auditors’ Limited Assurance Report
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In 2023, we started to integrate the global initiative
for tool donation into our Engaged Beyond Businessprogram. This initiative stems from the circularity
program as part of giving a second life to returned
fleet tools. We donate returned tools for humanitarianand educational purposes. In 2023, we donated tools
in 20 countries, for example to support construction
education in Sweden or to assist wood workshops forpeople with special needs in Italy. Going forward, we
will focus on expanding the geographical scope of ourtool donation program, implementing additional tool
donation options and including tracking in our reporting
tool for Engaged Beyond Business.
Circularity: p. 20

Every year we measure team members’ perception
in our global employee opinion survey, GEOS, on thequestion: “Hilti actively supports me to engage in social
initiatives beyond business.” In the 2023 reporting year,
we increased the positive perception by 5 percentage
points, from 77 to 82 percent, at Group level. This
marks a significant increase for the third year in a row
since we began measuring team members’ perception
towards our corporate volunteering program. We see
this positive improvement as an indication that weare moving in the right direction, and will focus ourefforts on scaling and promoting the Engaged Beyond
Business program.

Engaged Beyond Business –A chance to volunteer for everyone
Volunteering at Hilti can be as diverse as our teams
are. We support projects on-site through technicalor hands-on activities. We encourage skills-based
involvement, where team members support projects
with their professional know-how and competencies.
And we encourage team-led charitable and fundraising
activities. Many of our programs are run locally andfocus on social commitment for causes directly
where our team members live and work. Hilti teammembers get paid time off to volunteer for their causes
of interest. To round it off, the Hilti Foundation has
selected partnerships with organizations and offersinternational projects that our team members may join.

SOCIAL IMPACT

Discover a selection of first-hand stories of ourteam members’ volunteer engagement in our2023 Company ReportCompanyReportSustainability Management
For Our Environment
For the People
For Our Society
Business Ethics

Installation of Beehives in Bulgaria

SOCIAL IMPACT

About This Report

GRI Content Index
Publication DetailsB ed Distribution Drive for Underprivileged Children in India

Hilti 2023 Sustainability Report

Exploreour stories

Auditors’ Limited Assurance Report

Our Culture of Engagement: p. 44

63

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Focus areas of the
Hilti Foundation
Together with highly competent partners, the Hilti
Foundation develops and executes projects in threemain strategic areas.

Learn more about the Hilti Foundation in our 2023 Company Report

Economic Empowerment

conviction on which the work in the focus area “Music for

For Our Environment

students build skills and mindsets that empower them on

For the People

them to develop and use their full potential while taking

For Our Society

Social Change” is based on. By making music together,
their path to adulthood. Strong self-confidence enables
responsibility for themselves and the community.
M usic for Social Change• By supporting social music programs around the world,

all about. Special programs provide both the ruraldevelopment opportunities that enable them to growpopulation and the young generation in the cities ofEast African countries with the ability to escape poverty
and become part of an emerging middle class.
Economic Empowerment

Sustainability Management

Every young person is entitled to a quality education, aEnabling people in need to become economicallyindependent is what economic empowerment is

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Music for Social Change

the Hilti Foundation offers children and young people

beyond themselves and overcome the limits set by theirsocio-economic background. This requires not only musicas such, but also well-trained teachers who focus on the
personal development of their young students.

• AIM, the Academy for Impact through Music, provides
a platform for these teachers to develop and test

innovative and impact-oriented teaching methods.

In 2023, AIM has started to develop “Fire up”, a lessavailability of many teachers and therefore condenses

About This Reportprogram. This allows AIM to also extend the reach of the

Auditors’ Limited Assurance Report

the core elements of AIM’s 15-month teacher training
program.

GRI Content Index

families in rural East Africa with professional training,

Affordable Housing & Technology• In 2014, the Hilti Foundation launched the BASE Bahay

better living standard through their own efforts.

By 2030, an estimated 3.0 billion people worldwide arematerial for the Global South. Focusing on housing• Since 2022, the vocational training project PropelA

significant impact not only on their safety and health but

provides Kenya’s youth with excellent practical skills

for sustainable employment and thus for a self-reliant
life. The program’s success requires commitment

from the government and from the private sector, with40 leading plumbing and electricalcompanies employing the initial

300 apprentices, who will graduate
with a national diploma after two

years. PropelA aims to transform thevocational education completely in
Kenya’s construction sector.

64

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farming enterprises. This enables them to earn asustainable and growing income, so they can afford a

Hilti 2023 Sustainability Report

SOCIAL IMPACT

SOCIAL IMPACT

time intensive course that recognizes the limited time

• The enterprise development program provides

coaching and microfinancing to create thriving

Business Ethics

expected to live in substandard housing. This has aalso on their economic and social opportunities. “Affordable
Housing & Technology” contributes to creating safer andaffordable living spaces for people in need by developing

innovative technologies and sustainable building concepts.
A ffordable Housing & Technology

Foundation to establish bamboo as a standard building
for low-income families, more than 1500 homes havebeen built in the Philippines and Nepal using Hilti’s

innovative CBFT bamboo technology. Although bamboo
is considered resilient, green, and affordable, it is still aniche product in the construction industry.

• To reach the next level in building with bamboo, BASE is

now enabling the construction of special structures, suchas schools, community centers and market halls, based on

the high-level research of its innovation center. Thus, BASE
is also helping to create a bamboo industry, including,among others, treatment facilities and prefabrication
centers. These also provide exciting business

opportunities for local entrepreneurs and communities.

ABOUT THIS REPORT
Basis of reporting

The 2023 Sustainability Report is the fourthsustainability report of the Hilti Group. The report also
contains information provided by the Hilti Foundation.
The reporting period is the 2023 financial year fromJanuary 1 to December 31, 2023. Deviating reporting
periods of data or content are shown separately. The
editorial deadline was March 8, 2024. We are reporting
annually on our progress. The next Sustainability
Report will therefore be published in 2025.
The report is based on the internationally recognizedreporting framework of the Global Reporting Initiative(GRI). This report has been prepared with reference to
the GRI Standards.
GRI Content Index: p. 70

The forward-looking statements made in the report are
based on internal assessments of future developmentsthat are subject to uncertainties and are not under thecontrol of Hilti. The report is published in English only.

Material topics and their delimitation
The material topics for Hilti were identified using
a materiality analysis based on the principles
formulated by the GRI, such as stakeholder
engagement, considering impacts in the context
of business activities and relationships, materiality
and completeness. In addition, general reporting
principles were observed: accuracy, balance, clarity,
comparability, completeness, sustainability context,
timeliness and verifiability.
Sustainability Management: p. 4

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Hilti 2023 Sustainability Report

ABOUT THIS REPORTThe table on page 67 shows the scope of the material
topics according to GRI 3-1 and the associated GRI
standards. There are no associated GRI standards
for the “Employee Engagement” and “Hazardous
Substances” topics. We have therefore referred directly
to the corresponding pages in the report to find the
management approach. The management approaches
to the topics “Waste”, “Water Efficiency” and“Contaminant Emissions” have been combined andare reported jointly in the “Environmental Protection”
chapter. The management approaches to the topics“Employee Engagement”, “Inclusion & Diversity”,“Learning & Development” and “Work-Life Balance”
have been combined and reported jointly in the “Our
Culture of Engagement” chapter.

Data and content
Quantitative sustainability reporting at Hilti is still underdevelopment. Therefore, we are not yet able to report
standardized Group data but have different data bases
depending on the topic. The content and data were
determined using surveys in the respective departments,
globally available information, and estimates. The data
published in this Sustainability Report was collected
and processed with the highest degree of accuracy.
Nevertheless, we cannot completely exclude thepossibility of transmission errors.
For calculation reasons, rounding differences of ± one
unit (CHF, % etc.) may occur in the tables.

CO2 calculations
This Sustainability Report contains data on Scope 1,
Scope 2 and Scope 3 CO2 emissions. These emissions

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are accounted for according to the Greenhouse Gas(GHG) Protocol and reported as CO2 equivalents.
Besides CO2, this also includes other greenhousegases defined by the Kyoto protocol.
We have determined Scope 1 emissions for the Group
using energy consumption and local emission factors.
We use real information on gas and oil consumption in
our buildings, as well as vehicle fuel consumption in ourmarket organizations. We included estimates for locations
and time intervals where no consumption data wereavailable. For the last two months of the reporting period,
we systematically generated estimated data. Theseestimates are based on, for example, prior period data,
average consumption per car (vehicles), per square meter(warehouses), per repair output hour (repair centers), peremployee (office buildings) or per building (Hilti stores).
We account for our Scope 2 CO2 emissions using amarket-based approach, assuming that there are zero
Scope 2 emissions for green electricity. We source
green electricity globally in the form of certificates(RECs or GOOs). Additionally, we generate our own
photovoltaic electricity in some of our locations. We
included estimates for locations and time intervals
where no consumption data were available. For the last
two months of the reporting period, we systematicallygenerated estimated data. These estimates are basedon, for example, prior period data, average consumption
per car (vehicles), per square meter (warehouses), per
repair output hour (repair centers), per employee (officebuildings) or per building (Hilti stores).
We analyzed and evaluated our Scope 3 emissions in
the upstream and downstream stages of our value chain
and identified eleven categories which are applicable for
Hilti. For the calculation of Scope 3 emissions in every
category, different methods are used.

Sustainability Management
For Our Environment
For the People
For Our Society
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• For Category 1 (Purchased Goods and Services),for direct materials, an average-data method isused where possible. Cradle-to-gate greenhousegas (GHG) emission factors were combined with
their respective material weights to generate their
Scope 3 GHG emissions. For weight categories
with no associated emission factor, line items withno associated weight and for indirect procurement
spending, a spend-based method is used. Ifavailable, data from suppliers were preferred overaverage data or spend data.
• For Category 2 (Capital Goods), a spend-based
method is used to calculate the Scope 3 GHG
emissions. The total capital expenditure is used as
input for using the spend-based method. The countryof the supplier is assumed to be the same as thecountry of the purchasing Hilti organization.
• For Category 3 (Fuel and Energy Related Activities),
an average-data method is used to calculate the
Scope 3 emissions. Well-to-Tank (WTT) emissions
factors are combined with fuel usage and electricity
consumption of our own operations to calculate
Scope 3 emissions. Electricity consumption emission
factors include both generation and transmission &distribution.
• For Category 4 (Upstream Transportation andDistribution), a distance-based method is used.
The weight-distance values are combined with theappropriate weight-distance emission factors to
calculate the Scope 3 emissions. The basis for weights
used are statements from the deliveries from Hilti’s
ERP system (inbound, replenishment and last mile).
• For Category 5 (Waste Generated in Operations),
a waste-type-specific method is used to calculate
the Scope 3 emissions. Emission factors for
specific waste types and waste treatment methods
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Hilti 2023 Sustainability Report

ABOUT THIS REPORT

are combined with the relevant waste weights tocalculate the Scope 3 emissions.
• For Category 6 (Business Travel), Scope 3 GHG
emissions are calculated from the distance traveledby transport method for business-related activities.
This primary emissions data is provided by travel
agencies. For Hilti organizations with spending forbusiness travel but no data for distance traveled,a spend-based method is used. Spending on
passenger transport, hotels and restaurants is
excluded from the indirect procurement spending
ledger in Category 1 to prevent double counting.
• For Category 7 (Employee Commuting), a distancebased method is used for headquarters locations
and an average-data method is used for otherlocations to calculate the Scope 3 emissions. The
analysis of employee commuting is calculated
from detailed commuting distance data and theHilti Mobility Management online survey for theheadquarters in Liechtenstein, and from headcountby country for the other locations.
• For Category 8 (Upstream Leased Assets), an
asset-specific method is used to calculate the
Scope 3 emissions.
• For Category 9 (Downstream Transportation andDistribution), the analysis is calculated from thedownstream transport of products and the revenue ofretailers attributed to Hilti products. A spend-based
method is used for downstream retailers to calculate
the Scope 3 emissions. Specifically for the retailer“Motek”, the downstream transport Scope 3 emissions
are calculated from Motek’s Carbon Accounting
Report as a proportion of Motek’s downstream
transport emissions equal to the proportion of revenue
attributed to Hilti products. For the rest of theretailers, a spend-based estimate is used.

• For Category 11 (Use of Sold Products), an
average-data method is used to calculate the
Scope 3 emissions.

Editorial• For Category 12 (End-of-Life Treatments of Sold
Products), a waste type-specific method is used
to calculate the Scope 3 emissions. Emission
factors for specific waste types and waste treatment
methods are combined with the relevant waste
weights to calculate the Scope 3 emissions.

For Our Environment

Waste data
Waste data is collected at our operational sites: in allplants and approximately 90 percent of the logistics
centers (by volume) and 78 percent of the repair
centers (by repair output). Waste from offices buildings
and Hilti Stores is not included, but also consideredinsignificant compared to the operational sites.

Water data
Water data is collected at our plants. We have notincluded water consumption in our logistics and repair
centers, office buildings and Hilti stores.

Data on circularity
The calculation basis of the quantitative circularity scorecovers various periods from 2022 and 2023. Purchasing
and sales volumes were included in the period
from 08/22 to 07/23, production data from 07/22 to
06/23 and transport packaging from 07/22 to 06/23.

Employees
We record data on our employees throughout theGroup. Except for employee retention numbers, alldata relates to the reporting date of December 31. Alldata are headcount figures. Apprentices, trainees andinterns are included in the total number of employees.

Sustainability Management

For the People
For Our Society
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Editorial
Material topic

Relevance

Related GRI standard(s)Sustainability Management

within Hilti

externally

CO2

x

x

305 Emissions 2016
302 Energy 2016

Circularityxx

301 Materials 2016
306 Waste 2020

Waste

x

x

306 Water 2020

Water Efficiencyxx

303 Water and Effluents 2018

Contaminant Emissionsxx

303 Water and Effluents 2018
204 Procurement Practices 2016308 Supplier Environmental Assessment 2016
414 Supplier Social Assessment 2016

Auditors’ Limited Assurance Reportx

Publication Details

Environment

Supplier Sustainability
PeopleUser Health & Safetyx

416 Customer Health and Safety 2016

Building Safetyx

416 Customer Health and Safety 2016

Hazardous SubstancesxPage 27 –30

Employee Health & Safetyx

403 Occupational Health and Safety 2018

Employee Engagementx

Page 44 – 46

Inclusion & Diversityx

405 Diversity and Equal Opportunity 2016

Learning & Developmentx

404 Training and Education 2016

Work-life Balancex

401 Employment 2016

SocietySocial Impactx

Business Ethics

67

Hilti 2023 Sustainability Reportx

ABOUT THIS REPORTx

413 Local Communities 2016x

2–27 Compliance with Laws and Regulations 2021
202 Market Presence 2016
205 Anti-corruption 2016
206 Anti-competitive Behavior 2016
402 Labor/Management Relations 2016
406 Non-discrimination 2016
407 Freedom of Association and Collective Bargaining 2016
408 Child Labor 2016
409 Forced or Compulsory Labor 2016
415 Public Policy 2016
417 Marketing and Labeling 2016
418 Customer Privacy 2016

For Our Environment
For the People
For Our Society
ABOUT THIS REPORTGRI Content Index

INDEPENDENT PRACTITIONER’S
LIMITED ASSURANCE REPORT

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Sustainability Management
For Our Environment

on selected indicators in the 2023 Sustainability Reportto the Board of Directors of Hilti Aktiengesellschaft, Schaan
We have been engaged by Board of Directors to performassurance procedures to provide limited assurance on
selected indicators in the 2023 Sustainability Report(including the GHG statement) of Hilti Aktiengesellschaft
for the period from 1 January 2023 to 31 December
2023. The selected indicators will be published in the
Sustainability Report 2023.
The following selected 2023 indicators were subject toour engagement (“selected indicators”):• Environment (pages 18,19 and 29 of the2023 Sustainability report)• Table “Energy consumption”;• Total Scope 1, Scope 2 GHG emissions and Total
Scope 3 emissions in table “CO2 emissions”• Total Water consumption in plants• People (page 54 of the 2023 Sustainability report)• Employee Health and Safety – table “Employee
accidents during work”
The 2023 Sustainability Report was prepared by
the Management of Hilti Aktiengesellschaft (the‘Company’) based on the guidelines for sustainability
reporting of the Global Reporting Initiative, the “GRI
Standards” (latest versions) and the Greenhouse Gas(GHG) Protocol Corporate Standard. The Company
presents its Basis of reporting in the section “About thisReport” in the 2023 Sustainability Report, from page
65 to 67 (the “suitable Criteria”).
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Hilti 2023 Sustainability Report

For the People

Inherent limitations

Independence and quality management

The accuracy and completeness of the selectedindicators (including the GHG statement) are subject
to inherent limitations given their nature and methods
for determining, calculating and estimating such data.
In addition, the quantification of the selected indicators(including the GHG statement) is subject to inherent
uncertainty because of incomplete scientific knowledge
used to determine factors related to the selectedindicators (including the GHG statement) and thevalues needed to combine e.g. emissions of different
gases. Our assurance report will therefore have to beread in connection with the suitable criteria used by
Hilti Aktiengesellschaft.

We are independent of the Hilti Aktiengesellschaft
in accordance with the International Code of Ethics
for Professional Accountants (including International
Independence Standards) issued by the International
Ethics Standards Board for Accountants (IESBA Code).
We have fulfilled our other ethical responsibilities inaccordance with the IESBA Code, which is foundedon fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality
and professional behaviour.

Board of Directors’ responsibility
The Board of Directors of Hilti Aktiengesellschaft
is responsible for preparing and presenting theEnvironment and People in accordance with thesuitable criteria. This responsibility includes thedesign, implementation and maintenance of theinternal control system related to the preparation of
the selected indicators (including the GHG statement)that are free from material misstatement, whether due
to fraud or error. Furthermore, the Board of Directors
is responsible for the selection and application of thesuitable criteria.

AUDITORS’ LIMITED ASSURANCE REPORT

PricewaterhouseCoopers AG applies International
Standard on Quality Management 1, which requires
the firm to design, implement and operate a system of
quality management including policies or procedures
regarding compliance with ethical requirements,
professional standards and applicable legal andregulatory requirements.

Practitioner’s responsibility
Our responsibility is to perform an assurance
limited engagement and to express a conclusionon the Environment and People (including the
GHG statement). We conducted our engagementin accordance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised)‘Assurance engagements other than audits or

For Our Society
About This Report
AUDITORS’ LIMITED ASSURANCE REPORTGRI Content Index
Publication Details

reviews of historical financial information’ and theInternational Standard on Assurance Engagements
3410, Assurance Engagements on Greenhouse Gas
Statements (‘ISAE 3410’), issued by the International
Auditing and Assurance Standards Board. Thosestandards require that we plan and perform ourprocedures to obtain limited assurance whether
anything has come to our attention that causes us tobelieve that the Environment and People (including the
GHG statement) was not be prepared, in all material
aspects, in accordance with the suitable criteria.
Based on risk and materiality considerations, we
performed our procedures to obtain sufficient andappropriate assurance evidence. The procedures
selected depend on the assurance practitioner’s
judgement. A limited assurance engagement under
ISAE 3000 (Revised) and ISAE 3410 is substantiallyless in scope than a reasonable assurance engagement
in relation to both the risk assessment procedures,
including an understanding of internal control, and theprocedures performed in response to the assessedrisks. Consequently, the nature, timing and extent
of procedures for gathering sufficient appropriate
evidence are deliberately limited relative to a reasonableassurance engagement and therefore less assurance isobtained with a limited assurance engagement than fora reasonable assurance engagement.
We performed the following procedures, among others:• Assessing the suitability in the circumstances ofCompany’s use of the suitable criteria, applied as
explained in the Basis of reporting in the section“About this Report” on the pages 65 to 67 in the2023 Sustainability Report (including the GHG
statement) to the selected indicators in the2023 Sustainability Report (including the GHG
statement);

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Hilti 2023 Sustainability Report• Inquiries and detailed walkthroughs with relevant
stakeholders for the selected indicators 2023 in
the 2023 Sustainability Report (including the GHG
statement);• Inspection of process and control descriptions andother internal guidelines and relevant documents;• Analytical procedures;• Reperformance of relevant calculations (including the
GHG statement);• Additional assurance procedures as deemednecessary (e.g. sample based source tracing);• Local level procedures (site visits to inspect local
processes and reconcile source evidence).
We believe that the evidence we have obtained issufficient and appropriate to provide a basis for ourconclusion.

Conclusion
Based on the work we performed, nothing has cometo our attention that causes us to believe that selectedindicators (including the GHG statement) of Hilti
Aktiengesellschaft for the period from 1 January 2023 to
31 December 2023 are not prepared, in all material
respects, in accordance with the suitable criteria.

Intended users and purpose of the report
This report is prepared for, and only for, the Board of
Directors of Hilti Aktiengesellschaft, and solely for the
purpose of reporting to them on the selected criteria(including the GHG statement) and no other purpose.
We do not, in giving our conclusion, accept or assume

AUDITORS’ LIMITED ASSURANCE REPORT

responsibility (legal or otherwise) or accept liability for,or in connection with, any other purpose for which ourreport including the conclusion may be used, or toany other person to whom our report is shown or into
whose hands it may come, and no other persons shallbe entitled to rely on our conclusion.
We permit the disclosure of our report, in full only andin combination with the suitable Criteria, to enable
the Board of Directors to demonstrate that they
have discharged their governance responsibilities bycommissioning an independent assurance report overselected indicators in the 2023 Sustainability Report(including the GHG statement), without assuming or
accepting any responsibility or liability to any third
parties on our part. To the fullest extent permitted
by law, we do not accept or assume responsibility
to anyone other than the Board of Directors of Hilti
Aktiengesellschaft for our work or this report.
PricewaterhouseCoopers AG
Stefan Räbsamen		Petar Lesic

Zürich, 14 March 2024
‘The maintenance and integrity of Hilti Aktiengesellschaft’s

website and its content are the responsibility of the Board of

Directors; the work carried out by the assurance provider does
not involve consideration of the maintenance and integrityof the Hilti Aktiengesellschaft’s website, accordingly, theassurance providers accept no responsibility for any changes

that may have occurred to the reported Environment and People(including the GHG statement) or suitable Criteria since they
were initially presented on the website.

Editorial
Sustainability Management
For Our Environment
For the People
For Our Society
About This Report
AUDITORS’ LIMITED ASSURANCE REPORTGRI Content Index
Publication Details

GRI CONTENT INDEX

Editorial
Sustainability Management

GRI 1: Foundation 2021

For Our Environment

Hilti Group has reported the information cited in this GRI content index for the period January 1, 2023 and December 31, 2023 with reference to the GRI Standards.

For the People
For Our Society

GRI Standard

Disclosure

GRI 2

General Disclosures 2021

GRI 2-1

Organizational details

p. 3; Financial Report 2023: Chapter “Group at a Glance”

GRI 2-2

Entities included in the organization’s sustainability reporting

Financial Report 2023: p. 19

GRI 2-3

Reporting period, frequency and contact point

p. 65, 75

GRI 2-4

Restatements of information

p. 19, p. 30

GRI 2-5External assurance

p. 68

GRI 2-6

Activities, value chain and other business relationships

www.hilti.group
Company Report 2023: “Get to Know Hilti”

GRI 2-7

Employees

p. 4ff., 49 ff.

GRI 2-8

Workers who are not employees

p. 50

GRI 2-9

Governance structure and composition

Financial Report 2023: Chapter “Corporate Governance”;
Company Report 2023: “Board of Directors” and “Executive Board”

GRI 2-10

Nomination and selection of the highest governance body

Financial Report 2023: Chapter “Corporate Governance”;
Company Report 2023: “Board of Directors” and “Executive Board”

GRI 2-11

Chair of the highest governance body

Company Report 2023: “Board of Directors”

GRI 2-12

Role of the highest governance body in overseeing the ­management of impacts

The Corporate Sustainability Team regularly presents relevant sustainable development topics
from within the organization and outside the organization to the Board of Directors

GRI 2-13

Delegation of responsibility for managing impacts

p. 9 ff.

GRI 2-14

Role of the highest governance body in sustainability reportingp. 10 ff.

GRI 2-15

Conflicts of interest

p. 57

GRI 2-16

Communication of critical concerns

Financial Report 2023: Chapter “Corporate Governance”

GRI 2-17

Collective knowledge of the highest governance body

The Corporate Sustainability Team regularly presents relevant sustainable development topics
from within the organization and outside the organization to the Board of Directors

GRI 2-18

Evaluation of the performance of the highest governance body

Financial Report 2023: Chapter “Corporate Governance" and Note “Related Parties”

GRI 2-19

Remuneration policies

Financial Report 2023: Note “Related Parties”

1

Location

The numbers refer to the relevant 10 principles of the UN Global Compact.

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GRI CONTENT INDEXUNGC1About This Report
Auditors’ Limited Assurance Report
GRI CONTENT INDEX
Publication Details

GRI Standard

GRI 2-20

Disclosure

Location

Process to determine remuneration

UNGC1

Editorial

Hilti uses standardized salary group structures for all functions and in all countries and ­regularly
reviews them. This includes a reasonable compensation range for each position, to ensurecompensation is set based on the position and free from any discriminatory factors, as well as incompliance with local minimum wage regulations. A gender pay equity review is performed every
two years.

Sustainability Management

For more information, refer to Financial Report 2023: Note “Personnel expenses”

For the People

GRI 2-22

Statement on sustainable development strategy

p. 3, 4 ff.; Financial Report 2023: Chapter “Management Report”

GRI 2-23

Policy commitments

p. 57

GRI 2-24

Embedding policy commitments

p. 31 ff., 45, 56 ff.

GRI 2-25

Processes to remediate negative impacts

p. 56 ff.

GRI 2-26

Mechanisms for seeking advice and raising concernsp. 58

For Our Environment

For Our Society

1, 2About This Report
Auditors’ Limited Assurance Report

See Company Report: “Business Ethics”
GRI 2-27

Compliance with laws and regulations

GRI 2-28

Membership associations

Swissmem
EPTA – European Power Tool Association
ZVEI – Zentralverband Elektrotechnik- und Elektronikindustrie e. V.
European Committee for Standardization
European Organization of Technical Assessment
International Code Council
UNGC

GRI 2-29

Approach to stakeholder engagement

p. 10 ff.

GRI 2-30

Collective bargaining agreements

We have collective agreements in all countries where it is legally required. We ensure that all
employees are paid in line with the market.

GRI 3

Material Topics 2021

GRI 3-1

Process to determine material topics

GRI 3-2

List of material topics

p. 7, 67

GRI 3-3Management of material topics

p. 7

GRI 201

Economic Performance 2016

GRI 201-2

Financial implications and other risks and opportunities due to climate change

GRI 202

Market Presence 2016

GRI 202-1

Ratios of standard entry level wage by gender compared to local minimum wage

1

The numbers refer to the relevant 10 principles of the UN Global Compact.

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GRI CONTENT INDEXGRI CONTENT INDEX

There were no major incidents reported in accounting or tax fraud, corruption, bribery,­competition, the provision of products and services, or labor issues.

p. 7 ff.

p. 13 ff.
Hilti uses standardized salary group structures for all functions and in all countries and regularly
reviews them. This includes a reasonable compensation range for each position, to ensure compensation is set based on the position and free from any discriminatory factors, as well as in compliancewith local minimum wage regulations. A gender pay equity review is performed every two years.

Publication Details

3

GRI Standard

Disclosure

Location

GRI 204

Procurement Practices 2016

GRI 204-1

Proportion of spending on local suppliers

GRI 205

Anti-corruption 2016

UNGC1

Sustainability Managementp. 31

For Our Environment

GRI 205-1

Operations assessed for risks related to corruption

Corruption risk assessment conducted for all entities globally

10

GRI 205-2

Communication and training about anti-corruption policies and proceduresp. 32, 57, 60

10We are not aware of any confirmed cases of corruption in the Group.

10

GRI 205-3

Confirmed incidents of corruption and actions taken

GRI 206

Anti-competitive Behavior 2016

GRI 206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

GRI 301

Materials 2016

GRI 301-1

Materials used by weight or volume

There are no legal proceedings pending due to anti-competitive behavior or the formation ofanti-trust or monopolies.
p. 23

8

GRI 301-2

Recycled input materials used

p. 23 ff.

8, 9

Reclaimed products and their packaging materials

p. 26

8, 9

GRI 302

Energy 2016
8

GRI 302-1

Energy consumption within the organization

p. 18 ff.

GRI 302-3

Energy intensity

p. 18
p. 18, 27 ff.

8, 9
7, 8

GRI 302-4

Reduction of energy consumption

GRI 303

Water & Effluents 2018

GRI 303-1

Interactions with water as a shared resourcep. 27 ff.

GRI 303-2

Management of water discharge-related impacts

p. 27 ff.

GRI 303-5

Water consumption

p. 29

GRI 305

Emissions 2016

7, 8

GRI 305-1

Direct (Scope 1) GHG emissions

p. 14, 15, 17 ff.

8

GRI 305-2

Energy indirect (Scope 2) GHG emissions

p. 14, 15, 17 ff.

8

GRI 305-3

Other indirect (Scope 3) GHG emissions

p. 14, 17 ff.

8

GRI 305-4

GHG emissions intensity

p. 19

8

GRI 305-5

Reduction of GHG emissions

p. 13 ff.

8, 9

GRI 306

Waste 2020

GRI 306-1

Waste generation and significant waste-related impacts

p. 28 ff.

GRI 306-2

Management of significant waste-related impacts

p. 27 ff.

GRI 306-3

Waste generated

p. 19, 30

GRI 306-4

Waste diverted from disposal

p. 23, 26, 28

GRI 306-5

Waste directed to disposal

p. 25, 28

The numbers refer to the relevant 10 principles of the UN Global Compact.

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Hilti 2023 Sustainability Report

GRI CONTENT INDEXFor the People
For Our Society
About This Report

GRI 301-3

1

Editorial

8

Auditors’ Limited Assurance Report
GRI CONTENT INDEX
Publication Details

GRI Standard

Disclosure

Location

GRI 308

Supplier Environmental Assessment 2016

GRI 308-1

New suppliers that were screened using environmental criteria

GRI 401

Employment 2016

GRI 401-1

New employee hires and employee turnover

GRI 403

Occupational Health and Safety 2018

GRI 403-1

Occupational health and safety management system

p. 51 ff.

GRI 403-2

Hazard identification, risk assessment, and incident investigation

p. 52, 54

GRI 403-3

Occupational health services

p. 52

GRI 403-4

Worker participation, consultation, and communication on occupational healthand safety

p. 54

GRI 403-5

Worker training on occupational health and safety

p. 53

GRI 403-6

Promotion of worker healthp. 48

GRI 403-7

Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships

p. 54

GRI 403-8

Workers covered by an occupational health and safety ­management system

p. 51

GRI 403-9

Work-related injuries

p. 54

GRI 404

Training and Education 2016

GRI 404-2

Programs for upgrading employee skills and transition ­assistance programs

p. 47

GRI 404-3

Percentage of employees receiving regular performance and career development
reviews

p. 47

GRI 405

Diversity and Equal Opportunity 2016

UNGC1

Sustainability Management
p. 31 ff.

For Our Environmentp. 49

For the People
For Our Society
About This Report
Auditors’ Limited Assurance Report
GRI CONTENT INDEX
Publication Details

GRI 405-1

Diversity of governance bodies and employees

p. 49

6

GRI 405-2

Ratio of basic salary and remuneration of women to men

p. 47

6

GRI 406

Non-discrimination 2016

GRI 406-1

Incidents of discrimination and corrective action taken

GRI 407

Freedom of Association and Collective Bargaining 2016

GRI 407-1

Operations and suppliers at which the right to freedom of a
­ ssociation and­collective bargaining may be at risk

GRI 408

Child Labor 2016

GRI 408-1

Operations and suppliers at significant risk for incidents of child labor

1

The numbers refer to the relevant 10 principles of the UN Global Compact.

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Editorial

We have implemented an anti-discrimination policy. Violations can be reported via our various
compliance tools. No cases were known during the reporting year.
All suppliers are committed to maintaining the highest ethical standards. In cases of suspicion,
external audits are carried out.

3

All suppliers are committed to maintaining the highest ethical standards. In cases of suspicion,
external audits are carried out.

5

GRI Standard

Disclosure

GRI 409

Forced or Compulsory Labor 2016

GRI 409-1

Operations and suppliers at significant risk for incidents of forced or compulsory
labor

GRI 413

Local Communities 2016

GRI 413-1

Operations with local community engagement, impact ­assessments, and­development programs

p. 7, 16, 62 ff.

GRI 413-2

Operations with significant actual and potential negative ­impacts on local­communities

We do not engage in business activities with significant or potential negative impacts on local
communities.

GRI 414

Supplier Social Assessment 2016

GRI 414-1

New suppliers that were screened using social criteria

GRI 415

Public Policy 2016

GRI 415-1

Political contributions

GRI 416

Customer Health and Safety 2016

GRI 416-1

Assessment of the health and safety impacts of product and service categories

GRI 417

Marketing and Labeling 2016

GRI 417-2

Incidents of non-compliance concerning product and service information andlabeling

We are not aware of incidents in the reporting year.

GRI 417-3

Incidents of non-compliance concerning marketing ­communications

We are not aware of incidents in the reporting year.

GRI 418

Customer Privacy 2016

GRI 418-1

Substantiated complaints concerning breaches of customer privacy and lossesof customer data

1

Location

Hilti 2023 Sustainability Report

Editorial
Sustainability Management

All suppliers are committed to maintaining the highest ethical standards. In cases of suspicion,
external audits are carried out.

p. 31 ff.

4

For Our Environment
For the People
For Our Society
About This Report
Auditors’ Limited Assurance Report

The numbers refer to the relevant 10 principles of the UN Global Compact.

74

UNGC1

GRI CONTENT INDEXAs a matter of principle, Hilti does not support any political parties.
Hilti examines all products with regard to their impact on the health and safety of users andbuilding occupants.

To our knowledge, there were no substantiated complaints in the reporting year.

GRI CONTENT INDEX
Publication Details

PUBLICATION DETAILS
Publisher

Hilti Corporation
Corporate Sustainability
PO Box 333, 9494 Schaan, Liechtenstein

Editor-in-chief

The complete sustainability report, the principles ofcorporate governance, the Group organizational chart,
a list of consolidated companies and information on theMartin Hilti Family Trust can be found on the Internet atwww.hilti.group.

Peter Rupp

Contact

sustainability@hilti.com

Concept

Kirchhoff Consult AG (Hamburg, Germany),
Hilti Corporate Sustainability

Editorial team, text

Lead: Lukas Vogt
Team: C hris Larson, Patricia Minogue, Alexandra Risch,Iris Schmutz, Katrin Walser-Kessler

DesignKirchhoff Consult AG, Benno Erhardt (Hilti)

Photography
Hilti AG

Image processing
Kirchhoff Consult AG

Production

Kirchhoff Consult AG, Katrin Walser-Kessler (Hilti)

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Hilti 2023 Sustainability Report

We would like to thank our customers, employees andpartners for their support. The sustainability report ispublished in English. Duplication, even in part, only withpermission of the publisher.

PUBLICATION DETAILSOur Communication on Progress (CoP) 2023 for
the UN Global Compact is fully integrated into thissustainability report.

Editorial
Sustainability Management
For Our Environment
For the People
For Our Society
About This Report
Auditors’ Limited Assurance Report
GRI Content Index
PUBLICATION DETAILS