SUSTAINABILITY REPORT 2023
EMPOWERING CUSTOMERS TO ACHIEVE MORE WITH LESS

Driving
Sustainability
and Innovation

2

SUSTAINABILITY REPORT 2023

About Oerlikon
Oerlikon is a global technology leader for surface solutions,polymer processing and additive manufacturing. Our solutions
and comprehensive services, together with our advanced materials,
improve and maximize the performance, function, design andsustainability of our customers’ and their customers’ products
and manufacturing processes in key industries.
Pioneering technology for decades, we cherish creating anddesigning the future with our customers close to where they are,enabling them to achieve more with less.
We help our customers to become more sustainable and efficient.
Emissions reduction in transportation, maximized longevity andperformance of tools, luxury accessories and components,
increased energy efficiency, intelligent materials and sustainable
polymer processing are proven hallmarks of our global leadership.
Everything we invent, develop and do is guided by our passion to
support our customers’ goals and foster a sustainable world.
Headquartered in Pfaeffikon, Switzerland, the Group operates
its business in two Divisions – Surface Solutions and Polymer
Processing Solutions. It has a global footprint of more than
12 600 employees at 207 locations in 38 countries and generated
sales of CHF 2.7 billion in 2023.

oerlikon.com

SUSTAINABILITY REPORT 2023

2023 Progress on Targets
Continued to invest in sustainable products:

Increased percentage of women in l­eadership~78% of R&D expenditure.

and management roles to 14%.

Improved on operational environmental

Strengthened diversity further through programs,

targets: +36 sites with energy management

such as celebrating International Women’s Day

systems, i.e. a total of 90 sites, accounting for

and Pride Month, organizing 3rd Diversity

52% of operational sites; +9 sites using solely

Conference (cultural diversity), being a signatory of

renewable electricity.

Equal Voice and creating a total of five employee
resources group.

Reduced total accident frequency rate by
18% to 0.72 vs. baseline (0.88).

Covered 30% of our mapped spending with key
and strategic suppliers using EcoVadis. 66% ofExpanded stakeholder engagement and disclosure

our suppliers improved their overall EcoVadis

on governance, remuneration and sustainability.

score in 2023.

100%

100%
0

52%
35%
22%

12%

53.8
60.9

Baseline

2023

2030E*

Implementing energy management
systems at relevant sites(pages 21, 37)

Baseline2023% of electrical energy fromrenewable sources(pages 21, 38 – 39)

20%

12%

Baseline

2023

2030E*

Reducing emissions in relevant operations
to become climate neutral(pages 21, 43 – 45)

30%
24%

14%

2030E*

22%
21%
27%
42%

Baseline

2023

2030E*% of management and leadershiproles filled by women(pages 21, 50)

Baseline

2023

2030E*% of women in high potential
talent programs(pages 21, 52)

Baseline

2023

2030E*

Reducing % of disposed waste(pages 21, 40)

100%
72%

78%

<0.50
0.72
0.88
Baseline

2023

2030E*% of R&D investment in products thatmust cover ESG criteria(pages 21, 32 – 33)* 2030E – E stands for estimatedBaseline

2023

2030E*

Reduce rate of recordable
work-related injuries (TAFR)(pages 21, 57 – 58)

3

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SUSTAINABILITY REPORT 2023

Sustainable Solutions for Luxury
Riri places a strong emphasis on
sustainable solutions for its high-end
luxury products. An important part ofthis strategy is choosing materials that
reduce environmental impact. For
instance, the brass and steel used in its
metal products, like buttons and zippers, contain a high percentage ofrecycled materials. In addition, Riri
selects only sustainable materials for its
zipper tapes: the polyester is made from
100% recycled post-consumer material
and is certified according to the Global
Recycled Standard (GRS); the cotton iscertified according to the Global Organic
Textile Standard (GOTS), affirming theuse of natural fibers from a socially
responsible and environmentally friendly
supply chain. All precious metals arepurchased exclusively from supplierscertified according to the Responsible
Jewellery Council – Chain of Custody(RJC – CoC), providing the assurance
that responsible extraction and processing procedures are adopted
throughout the entire production anddistribution chain.
Similarly, Riri has embedded sustainability in its operations to substantiallyreduce its environmental impact. Since
2019, Riri has been purchasing certified
renewable electricity for some of its
plants; since January 2023, all Riri sites
have been utilizing electricity solely fromrenewable sources. To further increase
the circularity of plastics, Riri started a
project in 2023 to recover acetal resinand polyester yarn waste at its Tirano
site in Italy.
To reduce emissions from its lacquering
process, Riri installed a Regenerative
Thermal Oxidizer (RTO) at its Mendrisio
plant in 2023. RTOs destroy pollutants
generated by the process gas throughthermal oxidation at high temperature,
thereby reducing more than 77%(~10 VOCs tons/year) of Volatile
Organic Compounds (VOCs)
emissions compared to 2022.

SUSTAINABILITY REPORT 2023
01 Interview with Exec. Chairman & CSO

Interview with the
Executive Chairman and CSO1

A CONVERSATION WITH OERLIKONEXECUTIVE CHAIRMAN, MICHAEL SUESS(SUESS), AND OERLIKON CHIEFSUSTAINABILITY OFFICER (CSO),GEORG STAUSBERG (STAUSBERG).

basis. By leveraging our core competencies and expanding into new applications and markets, we are growing our business and, at the same time, extending ourpositive sustainability impact.
Stausberg: This is the reason why we have set a target
of investing 100% of our R&D expenditure in sustainable

How would you describe Oerlikon’s

products by 2030, which will further expand our sustain-

sustainability strategy?

ability impact and contributions. We are making good
progress on this target. In 2023, we invested 78% of our

Suess: Oerlikon’s strategy is to hold the number 1 or

R&D expenditure in sustainable products.

number 2 positions with our technologies in our end markets. Today, we occupy “sweet spots” in markets withThis report provides many case studies and examples

our innovative technologies, which serve as high barriersof our sustainable solutions for customers in key mar-to entry. We are leveraging our core competencies,

kets. These innovations are an integral part of the

including market leadership, innovations and talents, as

cost-effective and climate-friendly solutions that are

well as sustainability, to drive growth and profitability.

needed by our customers for their own operations andprofit models.

Our sustainability strategy is an important part of ourbusiness strategy. Our vision is to continue empowering

For example, our coatings can extend the lifetime of tools

customers with our technologies so that they canby 20 times, which is equivalent to reducing aroundincrease their efficiency and minimize their environmental

8.3 million metric tons of CO2 or 28% of Swiss CO2 emis-

footprint. At the same time, we are focused on minimiz-

sions in 2022. Our high-tech abradable coatings in jet

ing Oerlikon’s own environmental impact, ensuring aengines increase engine operation safety and reduce fuelstrong health, safety and employee culture, engaging

consumption, thereby cutting CO2 emissions by about

regularly with stakeholders and upholding good gover-

26 million metric tons, or 88% of Swiss CO2 emissions innance.

2022. Collectively, just two of our solutions save more
CO2 emissions than the amount of emissions generated
in 2022 in Switzerland.

Can you elaborate on your sustainableproducts?

Another example is our EvoSteam process for manufacturing staple fibers. This can reduce waste by up to 50%,

Suess: Oerlikon delivers innovative technologies thatlower the carbon footprint by up to 50% and save up to

help customers achieve greater efficiency and produc-

3.2 million liters of water annually.

tivity, while using less energy and producing less waste
and fewer emissions. We serve a broad base of customers

We will continue to develop and enhance our equipment,

in diverse industries – from automotive, aerospace andproducts and materials to extend tool life, reduce automotive and aerospace fuel consumption and improveenergy to luxury, textiles and polymer processing.

textile and machinery efficiency, as well as work to
Owing to our technology leadership and broad market

increase the recycling of fibers and materials. In addition,

reach, Oerlikon is a sustainable company, and contributes

we will continue to pioneer technologies for future

to sustainability across all these industries on an ongoing­mobility and artificial intelligence (AI) applications.

1

GRI 2-22

5

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SUSTAINABILITY REPORT 2023
01 Interview with Exec. Chairman & CSO

We are also applying the same principles and ap-

mapped spending (key and strategic suppliers), an improve-

proaches in our own operations. Our aim is to excel inment on the 20% figure in 2022. Furthermore, 66% of ourour operations, reduce our environmental footprint andsuppliers improved their overall EcoVadis score in 2023. We

improve our diversity, equity and inclusion performance

have also identified and trained regional Sustainability

as we advance toward our 2030 targets.

Champions, who act as our regional experts and single
points of contact for our sustainability campaigns.

What milestones did Oerlikon achieve inenvironmental sustainability in 2023?

What were Oerlikon’s social achievements
in 2023?

Stausberg: We are making good progress in the implementation of our energy management systems (EnMs). In

Suess: In 2023, we further strengthened our diversity

2023, we added another 36 sites, bringing the total

actions and initiatives. The theme of our annual diversity

number of sites with EnMS to 90, or 52% of our opera-

conference was “Connect”. It celebrated the diverse cul-

tional sites. This means that we can expect to meet ourtures, backgrounds and perspectives that constitutetarget of 100% in the next few years. It is also worth

Oerlikon’s fundamental strengths. The talks and panel dis-noting that the 90 sites account for 81% of the total

cussions explored the influence of different cultures andenergy consumed by Oerlikon.

learning attitudes on professional behavior and provided
tips on how to harness cultural diversity to build successful

Another area where we are making progress is our work

international teams.

on Scope 3. With an external partner, we have gained agood understanding of the Scope 3 emissions generated

We also expanded our diversity events and celebrated

along our value chain.

Pride Month, International Women’s Day and International
Women in Engineering Day, among others. To show ourOur machinery and systems sold to customers arecommitment to diversity, Oerlikon is a signatory to Equal

highly reliable and durable, with a lifetime of at least 10

Voice and also of Switzerland’s Trans Rights pledge.

to 15 years. This attests to the quality of our products,
and the resultant positive impact that there is less waste.

Stausberg: In 2023, we also introduced new Employee

That said, Scope 3 requires us to account for the emissions generated by such machinery over their lifetime

Resource Groups (ERGs), such as Parents@Oerlikon andwhen used by our customers.

groupsMultiGen@Oerlikon, whose focus is to advocate for thetheyrepresent

and

help

increasetheopportunities available to them at the workplace.
Thus, we are systematically evaluating how we canmeaningfully improve our Scope 3 impact, including forsuch machinery. We are presently working with an external

How are the forthcoming new sustainability

partner to assess and quantify our Scope 3 categories forregulations impacting Oerlikon’s sustainability

the calendar years 2022 and 2023, and the project isreporting and resources?

expected to be completed by middle of 2024.
Stausberg: Several new regulations are coming into effectWe plan to disclose our Scope 3 emissions in ourover the next years. The current one that applies to thisSustainability Report 2024, in line with requirements of thereport is the new Swiss law, Art. 964a et seqq. of the Swiss

Task Force on Climate-Related Financial Disclosures

Code of Obligations (CO), also known as the counter pro-

(TCFD). Moreover, we also plan to set and commit to a

posal to the Swiss Responsible Business Initiative (RBI).

Science Based Targets initiative (SBTi) target in 2024.
Since our first Sustainability Report 2020, we have beenWith regard to our supply chain, our partnership withvoluntarily and transparently reporting in accordance with

EcoVadis has to date facilitated us to cover 30% of our

the internationally recognized GRI standards and, since ourSUSTAINABILITY REPORT 2023
01 Interview with Exec. Chairman & CSO

2022 report, also in accordance with the SASB Standards.

How do you engage with stakeholders?

Both standards are considered acceptable standards
defined under Art. 964a et seqq. of the CO. Thus, we did

Suess: We work very closely with our customers andnot have to make any adjustments to our reporting.

partners in developing our technologies. With respect
to employees, in addition to our diversity, equity andForthcoming regulations, such as the Swiss Ordinanceinclusion (DEI) events, we regularly conduct employee

on Climate Disclosures and the EU Corporate Sustainableengagement surveys. We also share our strategy andReporting Directive (CSRD), require additional disclo-plans with them, including those on sustainability,

sures, which we have already started working on.

­utilizing our internal communication channels, such as
townhalls and my blog.

Suess: We understand that these laws and regulations
are necessary to ensure that companies are more

As for the financial community, Paul Adams, our inde-accountable and transparent in communicating thependent Lead Director, and I undertook further engage-

impact of their operations on the environment andment initiatives with investors and analysts in 2023 tosociety. That said, we would welcome it if there were a

improve their understanding of our strategically relevant

more aligned approach between the regulators and withgovernance and sustainability topics.

the standards. That would make it easier for companies
to comply and would increase the quality, transparency

Stausberg: With regard to suppliers, we engage withand comparability of the disclosures.

them in our audits and EcoVadis assessments to ensurethat they respect and adhere to our Code of Conduct,
which also strengthens our partnership with them.

How is sustainability governed at Oerlikon?
Suess: Sustainability is governed at the highest level,

Is there anything else you would like to share?

that is at the Board level. ESG topics are regularly on themeeting agenda of the Board of Directors and theSuess: In 2023, we faced demanding challenges in our

Executive Committee, reflecting our leadership and com-

end markets, which were driven by the slowdown inmitment to sustainability.

production, consumption and investment in China.
Despite these challenges, we remain committed toGeorg is a member of the Executive Committee and was
appointed our Chief Sustainability Officer. He is respon-making progress on ESG, both within Oerlikon andacross our value chain.

sible for executing the sustainability strategy and plan,
supported by the Sustainability Management Team andAs mentioned earlier, we are a sustainable company byvarious functions.

virtue of our technology leadership and market reach. At
the same time, we are improving sustainability in our

To further anchor sustainability across the company, we

operations. We intend to continue doing our part inare evaluating whether in addition to the current employee

helping to reduce the global carbon footprint and con-safety metric in our short-term incentive program, there

tributing to society in terms of sustainability.

are other sustainability key performance indicators (KPIs)
that may be relevant for our strategic goals and can be

Both: On behalf of the Board and the Executive

reliably measured.

Committee, as well as the entire Oerlikon team, we would
like to thank all our stakeholders for their support and for

In 2024, we will run a pilot project to assess which ESG

the trust they have placed in Oerlikon, in our sustainable

KPIs can be implemented and measured on an annual

strategy and in our technologies. As always, we arebasis. Feasible KPIs will then be implemented in

grateful for their collaboration and s­ upport as we prog-

2025/2026 as part of the remuneration packages forress together on our sustainability journey.

management and employees.

730% Fewer Tools Needed with BALIQ TISINOS PROBALIQ TISINOS PRO, a new coating that features a refined
micro-structure, is based on Oerlikon’s patented S3p technology.
It is specifically designed for materials that are challenging tomachine. This advanced coating significantly boosts theperformance and longevity of end mills and other cutting tools,
enhancing their efficiency by around 50% compared to its
predecessor. This translates to a roughly 30% decrease in thequantity of tools needed for identical tasks, leading to a substantial reduction in raw materials required for new tool manufacturing, transportation, energy consumption and waste production.
Additionally, end mills coated with BALIQ TISINOS PRO can bereconditioned multiple times after the initial coating wears off,
allowing for reapplication with minimal quality degradation. This
process not only prolongs tool life but also reduces the demand
for new end mills, fostering a more sustainable and resourceconserving approach in the metalworking sector.

SUSTAINABILITY REPORT 2023
Table of Contents

Table of Contents01	Interview with Oerlikon Executive Chairman
and CSO

02

03

04

05
06

Our Commitment to Sustainability

5–7
10 – 26

Our Strategy

10

Leveraging Our Innovative & Sustainable Technology

12Surface Solutions Sustainability Value Proposition

13

Polymer Processing Solutions Sustainability Value Proposition

14

Our Material Topics

15

Key Stakeholders & Our Value Chain

17

Engaging with Stakeholders18

Accelerated Sustainability Agenda

20

Progress on 2030 ESG Targets

21

ESG Highlights in 2023

22Transparency on Non-Financial Matters

24

Our Environmental Commitment 

27 – 45

Sustainable Products

28

Qualification of Sustainable Products

32

Qualification Process of Sustainable Products

34

Environmental Sustainability in Operations

36

Our Social Commitment 

46 – 68

Responsible Employer

47

Health and Safety

55

Responsible Sourcing and Human Rights

64

Our Governance Commitment 

69 – 79

Our Governance

70

Ethics and Integrity

74

About this Report

80 – 108GRI Content Index

82

SASB Mapping86

Index Table: Non-Financial Matters

87

Data Tables

88

Sites Consolidated in Sustainability Reporting

94

Independent Assurance Report

99

Glossary

106

9

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Our Strategy

OERLIKON CORE
COMPETENCIES

G
ES US
C
FO

Oerlikon’s strategy is to hold the number 1 or number 2 positions with our technologies in our end
markets. Presently, we occupy “sweet spots” inmarkets with our innovative technologies, which
serve as high barriers to entry.

TA L E T E D
NPEOPLEWe drive growth and profitability by leveraging ourcore competencies, including market leadership,
innovation and talents, as well as our focus on sustainability (ESG).
Our business objective is to provide customers
with solutions that make their production processes more efficient and their products more
durable. This is also our vision for sustainability at
Oerlikon (see graphic below).
Our solutions and services, together with ouradvanced materials, improve and maximize theperformance, function, design and sustainability of
our customers’ products and manufacturing processes in key industries, as well as those of theircustomers. By increasing efficiency, we enable

LE

IV
P EA
GR BOV
OW E
TH

Y
G S
N

ER
PREF REDPARTNERTKEP
A R SH I
M DER
ASTRATEGYGRI 2-22

TE C HINNO NOL
VA O
TI
O

10

DR D
G

customers to optimize their resource usage, lessen
their energy consumption and reduce waste andemissions.
Our innovative technologies deliver value to customers in the automotive, tooling, space, aviation,
luxury, energy, general industries, textile and polymer processing sectors. As a technology leader,
our solutions are widely adopted across industries,
meaning that people will encounter at least one
solution from Oerlikon every day. As a result,­Oerlikon’s solutions are positively impacting sustainability across diverse industries.

WHAT SUSTAINABILITY STANDS FOR AT OERLIKONPURPOSE

Maintain technology leadership andenable industries and customers to
do more with less.

FOCUS• Help customers and end users
reduce their environmental footprint.
• Minimize Oerlikon’s own
environmental impact.
• Ensure a strong health, safety
and employment culture.
• Uphold good governance and­stakeholder engagement.

VISION

Empower customers to increase
their ­efficiency and productivity,
optimize their use of resources
and reduce their energy use,water consumption and waste.

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Our overarching purpose is to leverage our technology leadership and expand/diversify into new
applications and new markets. By taking advantage of our knowledge and capabilities acrossadditional industries, Oerlikon is able not only todrive growth in its business portfolio but also toincrease its contribution to sustainability.
Moreover, at Oerlikon, sustainability stands for arelentless focus on minimizing our own environmental impact, ensuring a strong health, safety andemployee culture, engaging regularly with stakeholders and upholding good governance.
Oerlikon’s strategy and actions, including for sustainability, are governed at the highest level, specifically by the Board of Directors. Underpinning theBoard’s commitment to sustainability is the factthat the responsibility for sustainability has notbeen assigned to a Board committee but is a taskof the entire Board.
For the execution of our sustainability strategy,
actions and initiatives, the Board has appointed
a Chief Sustainability Officer (CSO), who is amember of the Executive Committee (EC). The
CSO is supported by the Sustainability Management Team and other functions, with representatives from the strategic, operative and businesslevels. Ultimately, line management needs toensure that business activities and processes
within their area of responsibility are aligned withsustainability, and each employee at ­Oerlikon is
individually responsible for adhering to the Oerlikon
Sustainability & HSE Policy.
The governance graphic on page 10 depicts thegovernance structure for sustainability, and further
information on sustainability governance can befound on pages 70 to 72.
Prioritizing sustainability in R&D and delivering
sustainable solutions for customers will always
take precedence. At the same time, we recognize
the need to apply the same standards of excellence to our own operational processes and systems and to reduce the impact of our businesson the environment. In this report, we provide
many examples of how our products contributeto sustainability, as well as the initiatives andactions that we have taken to reduce our environmental impact, improve our diversity, equity andinclusion (DEI) and strengthen our governance.
Ultimately, we are well positioned to maintain
Oerlikon’s technology leadership while delivering­
sustainable value to all stakeholders and simultaneously creating both market and social value.

GOVERNANCE: SUSTAINABILITY EMBEDDED ACROSS OERLIKONGRI 2-9,10,11,12

Responsibility &Oversight

Board of Directors
Mandates Chief Sustainability Officer to monitor, align and execute the sustainability strategy; provides
strategic guidance on the sustainability program; approves the sustainability report.

Audit & Finance Committee
Governance Committee
Monitors financial reporting, risk
Assists BoD in matters relating tomanagement and internal/external
corporate governance
audit

Human Resources Committee
Aligns compensation & incentive
schemes with ESG strategy;­performance assessment and­talent development

Executive Committee
Appoints a dedicated Chief Sustainability Officer to establish, manage and monitor the sustainability
strategy and its implementation

Sustainability Management Team
Executes sustainability strategy and coordinates action plans working with subject matter experts fromthe divisions, business units and functions
SupplyChain

HR

Sales /
Marketing

Legal

Corp.
R&D/QA Operations
Comms.

HSE

Finance/IR

Proposesroad map/
Implementation

11

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SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Leveraging Our Innovative andSustainable Technology
GRI 3-3

Our technologies help customers to increase­efficiency and productivity while using fewer­resources, such as energy and materials.

Total 2023 R&D Investment1
in CHF million

81

By leveraging our cutting-edge surface and polymer technologies, we can easily expand their use
in new applications and growth markets. For
instance, we are developing thin-film coating solutions for vehicles that are powered by batteries andfuel cells (eg. hydrogen), as well as thermal spraysolutions to reduce engine weight.
We are also enabling the production and use ofrecycled PET, as well as supporting the usage of
bioploymers and recycled polymers. More examples of how we are expanding into growth markets
can be found below and on pages 13 to 14 and 28
to 34 in this report.

78%

23

22%

	In sustainable products as per our defined­criteria (see pages 32 – 34).
	In other R&D products and activities.
1

Excluding 2023 acquisition and reversal of accruals.

SUSTAINABILITY DRIVERS

Energyconsumption

Water
consumption

SocialimpactWaste
reduction

Raw material
consumption

Emission
reduction

LEVERAGING TECHNOLOGY LEADERSHIP TO EXPAND INTO GROWTH
MARKETS WITH PROVEN AND NEW SOLUTIONS

Driving growth of lightweight andincreasingly sophisticated polymer
components
Partnering intextile recycling initiatives

Engineering solutions for versatilerPET applications
Accelerating transition of Luxury to
PVD1 coating as a greener technology

Developing additive manufacturingwith potential to enable resource
efficiency/waste reduction

1

Developing solutions for e-mobility
heat shielding, solid-statebatteries and fuel cells EVs

Physical vapor deposition (PVD) is a technique used to deposit a thin layer of material on a substrate surface in a vacuum.

Driving new coating solutions
for semiconductor production
machines

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Surface Solutions
Sustainability Proposition
Oerlikon coatings are omnipresent in the modern
world. Owing to our technology leadership, ourtechnologies have been widely adopted across amultitude of sectors. As a result, our surface solutions have made a clearly discernible contribution
to sustainability.

COATINGS MAKE THE
MODERN WORLD POSSIBLE

As customers continue to seek gains in efficiency,
durability and sustainability, Oerlikon is well positioned to deliver these benefits with its surface
solutions equipment, materials and services,
thereby driving sales growth while simultaneously
contributing to a more sustainable world.

VALUE PROPOSITION DRIVING
SALES GROWTH

ESSENTIAL• Economic viability: Coating significantly
improves an item’s performance and extends its
lifetime; recoating/regrinding gives new life totools.
• Superior characteristics: Durability, erosion
protection, wear resistance, thermal stability,
anti-reflection, clearance control, etc.

28%

A 20x lifetime extension of a metal tool
through coating is equivalent to ~8.3 million
metric tons of CO2 reduction annually or 28%
of Swiss CO2 emissions.1

VERSATILE• In countless applications, including automotive
parts, jet engines, cutting and forming tools,
luxury accessories, semiconductor production,
gas turbines, etc.
• Substitutes heavy materials with lightweightmaterials while still offering enhanced featuresand functions.
•	Color-coded tools facilitate clear visual­differentiation and reduce errors in usage,
resulting in less production downtime and waste.

88%

5% efficiency increase in jet engines throughcoatings is equivalent to ~26 million metric tonsof CO2 reduction annually2 or 88% of Swiss
CO2 emissions.1

SUSTAINABLE• Environmentally friendly alternative (PVD)
to traditional electroplating.3• Reduces waste and resources by ­prolonging the life span of a coated item.
• Improves productivity and saves costs.
1
2
3

Coatings enable the use of lightweight car
materials, which will extend the driving range. For
a 650-km range EV that is 10% lighter, the range
extends by 5 – 7%, equivalent to a marathon.

A total of 29.6 million metric tons in 2022, based on the report “CO2 statistics: Emissions from thermal and motor fuels” by the Swiss Federal Office for the Environment.
Based on the installed base of jet engines in 2019.
PVD coatings conform to the EU REACH regulation and are more environmentally friendly than electroplating because they require no metal derivatives, such as chromium
or nickel, and do not create any hexavalent chromium exposure or hazardous waste.

13

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SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Polymer Processing Solutions
Sustainability Proposition
Fibers and polymers produced with Oerlikon systems are used in a broad scope of applications,from apparel and clothing to seat belts, tire cords
and industrial filters. They are prevalent due to theirversatility and because they are a more sustainable
alternative to natural fibers.

POLYMERS MAKE THE MODERNWORLD POSSIBLE

As customers continue to seek gains in efficiency
and sustainability, and with the advances in recycled fibers and biopolymers, Oerlikon’s Polymer
Processing Solutions are already at the forefront indelivering these solutions, driving sales growth
while simultaneously contributing to a more sustainable world.

VALUE PROPOSITION DRIVING
SALES GROWTH

ESSENTIAL•	
Resource scarcity: High scalability in manmadeyarn production vs. capacity-constrained natural
fibers.
•	
Economic viability: Competing materials aresubstantially more expensive.
• Superior characteristics: Durability, stretchiness, water resistance, stain resistance.

Manmade fibers are less resource intensive
than natural fibers and are increasingly recyclable. A polymer t-shirt saves ~9 bathtubs
of water compared to a cotton t-shirt.

VERSATILE• In countless applications, such as clothing,carpets, industrial filters, seat belts, tire cords,
geotextiles, etc.
• Replacing materials, such as glass, metal andwood; reducing weight in automotive	­applications, such as e-mobility.

New filament equipment delivers ~30% energy
saving, which is equivalent to the annual CO2
emission savings1 produced by the gasoline
consumption of ~500k cars per year.

SUSTAINABLE• Improved ecological impact of manmade vs.
natural yarns.
• Reducing energy consumption and waste
and improving productivity under the e-saveprogram since 2004.
• Recyclability as the enabler of circularity.
•	
Biopolymers are of great interest as alternatives
to fossil-based polymers.
1

New filament equipment1 enables ~30% of
waste reduction, which is equivalent to theweight of 380 million t-shirts.

Data per 2020 installed base for new vs. older generation of FDY on POY take-up and winding machinery.

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Our Material Topics
DETERMINING OF MATERIAL TOPICSGRI 3-1

THE UNITED NATIONS SUSTAINABLE
DEVELOPMENT GOALSIn 2020, we sought input from a diverse crosssection of internal experts and external stakeholders (see table on page 19) for Oerlikon’smateriality analysis. In addition, we assessed thesustainability actions and initiatives communicated in our annual reports and benchmarked
them against details published in more than 120
sustainability reports.
Our aim in conducting this research was to identify
the topics, risks and trends that are most relevant toOerlikon. We examined what has or could have an
impact on Oerlikon and where, conversely, we makeor could make a positive impact. We then depicted
these material challenges in a materiality matrix (seepage 16).

LIST OF MATERIAL TOPICSGRI 3-2
This endeavor enabled us to define our eightmaterial topics, which have not changed since our(first) sustainability report for 2020:(i) Innovation(ii) Climate & energy(iii) Circular economy(iv) Health & safety(v) Employment practices & education(vi) Responsible sourcing & human rights(vii) Governance(viii) Community engagement
Recognizing the importance of these material
topics to stakeholders, we have set 2030 sustainability targets for six of them (see table on page21). The seventh topic drove our collaboration with
EcoVadis to elevate our record of compliance withresponsible sourcing and human rights. The eighth
topic, community engagement, is presently
addressed at a local level, and we are assessing
how we can best create a Group-wide platform
and process to ensure data quality and integrity.

The 17 United Nations Sustainable Development Goals (SDGs) are at the heart of the2030 Agenda for Sustainable Development
and define the world we want.
At Oerlikon, we affirm both the ideals and thenecessities of each of the 17 United Nations
SDGs. Given the nature of our business, processes and operations, we have a greater
impact on certain SDGs compared to others.
Based on where we can make the greatest
difference, both in our practices and in our
impact on the planet and its people, whether
globally or in the communities in which we
work, we have identified eight SDGs: Goal 3
Good Health and Well-Being, Goal 5 Gender
Equality, Goal 7 Affordable and Clean Energy,
Goal 8 Decent Work and Economic Growth,
Goal 9 Industry, Innovation and Infrastructure,
Goal 12 Responsible Consumption and
Production, Goal 13 Climate Action and Goal
17 Partnerships for the Goals.
These eight SDGs serve as additional goals
alongside our eight material topics.

ENVIRONMENTSOCIAL

GOVERNANCE

15

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Through materiality analyses and adherence tointernational GRI Standards, along with our unwavering commitment to transparency, we are confident in our ability to report on our sustainability
impact consistently, credibly and with full accountability to our stakeholders.

With that in mind, we intend to conduct the materiality assessment at reasonable intervals so that
we can evaluate if there is a need for us to makeany adjustments to our material topics. We plan toperform a double materiality assessment in 2024.

We see this sustainability report not as a means of
one-way delivery of information but rather as a toolfor engaging in an ongoing dialogue with our stakeholders. Integral to our sense of responsibility toeach of them is a commitment to soliciting andconsidering their feedback and suggestions. Our
efforts to understand our stakeholders’ perceptions of our products, operations, practices andimpact are a reflection of our belief that communication and the exchange of ideas are the building
blocks for achieving consensus.

Material Topics for OerlikonHigh• Health & safety• Employment practices& education• Responsible sourcing& human rights• Governance•C ommunity engagement

MediumCommunicating oursocial engagement,
corporate
governance andresponsible businesspractices• Innovation• Climate & energy• Circular economy

Low

Our strengths:
this is where we canmake a difference

Our impact on stakeholder assessments & decisions

16

Low

MediumHigh

Significance in relation to Oerlikon’s economic, environmental and social impacts

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Key Stakeholders and
Our Value Chain
GRI 2-6

At Oerlikon, we recognize that our relationships
with all stakeholders in our value chain, such as
customers, communities (employees and partners), the financial community, society, suppliers,
contractors and governments, are essential toenabling us to succeed not only in pursuing our
growth targets but also in making a contribution asa sustainable company.
Oerlikon’s innovations serve customers in key industries, including automotive, aerospace, tooling, textile,

polymer processing, energy and general industries,
and they are demanding smarter, more climate-­friendly solutions. As an employer, we are committed
to embracing diversity, nurturing talent and forging
career development. In all our endeavors, we pledge
Zero Harm to People, respect for human rights, nonuse of child labor and strict adherence to anti-harassment, anti-corruption and non-discrimination, among
others. We conduct our business with integrity and ina fair manner and expect the same from the partners
in our value chain.

Material & services

Services

Suppliers andContractors

Need for innovativetechnologies andsolutions that canhelp reduce
environmental
impactGovernments

WHAT

WHERE

Products, solutions

38 countries

and services

2023
EMPLOYEESSociety

Customers>12 600

SALES
TO WHOM
Automotive, tooling,

CHF 2.7 bn

Need for sustainable
and cost-efficient
products, solutions
and services

R&D INVESTED
CHF 103 m

aerospace, energy,
luxury, textile &general industries

Financial Community

Communities

Capital

Employees and Partners

17

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SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Engaging with Stakeholders
OUR APPROACH TO STAKEHOLDERENGAGEMENTGRI 2-29
Diverse perspectives are an important part of­Oerlikon’s culture because they can help us understand the needs and concerns of all stakeholders in
the industries and communities we serve.
Oerlikon maintains an ongoing dialogue with its
stakeholders, including employees, customers,
suppliers and partners, investors and analysts,
local communities, authorities and government
representatives, nongovernmental organizations,academic institutions and the media.
We depend on multiple channels and processes(see the Stakeholder Engagement table on
page 19) to optimize stakeholder engagement
and ensure comprehensive reporting on areasthat are material to the business.
In 2023, some of our shareholder engagements
included:•	
Customers: We worked closely withcustomers to identify innovations and upgrades
to our products, materials and services that
can help them save energy, reduce waste or
lower emissions. For example, Oerlikon is
working with a number of OEMs and Tier 1
auto suppliers to find customized solutions toresolve the risk of hydrogen embrittlement andloss of lubricity in fuel, which causes loss ofductility, high wear and increased friction.
•	
Financial community: Our Executive
Chairman and Lead Independent Director
continued to engage in multiple discussions
with investors to understand and address theirconcerns and to evaluate how we can provide
greater disclosure to increase transparency
and communication on topics related to governance and sustainability.

•	
Employees: We promoted DEI and raised
awareness for it through multiple events, suchas the Diversity Conference, Pride Month,International Women’s Day, and launched new
Employee Resource Groups, such as
MultiGen@Oerlikon and Parents@Oerlikon, toadvocate for the group they represent and tohelp increase the opportunities available tothem within the workplace. Additionally, using
results from the 2022 employee engagement
survey, in 2023, we focused on robust
follow-ups at the team level to identify current
challenges and measure progress.
•	
Suppliers: We completed the EcoVadis ratingprocess for key and strategic suppliers, whichcollectively represent 30% of Oerlikon’s
mapped spend. We strengthened engagementin the regions by appointing and training
regional Sustainability Champions.
We expect our stakeholder engagement strategy
to evolve further as we explore opportunities togain insights from stakeholder consultations. This
openness to feedback and even criticism plays acentral role in building on our history of continuous
process improvement and upholding our governance, environmental, social and sustainability
standards in our work around the world.
Working together with our stakeholders puts us in
the best position for realizing our mutually sharedgoals of strengthening our business, enriching
human welfare and preserving the planet.

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Stakeholder Engagement at Oerlikon
Stakeholders

Key Concerns of Stakeholder Groups

Examples of Engagement

GRI 2-29

GRI 2-25, 26

GRI 2-29

Employees• Corporate culture• Equality and diversity• Career advancement• Education and training• Health and safety• Environment• Community engagement• Social impact• Employee engagement surveys• Career development• In-person and virtual townhall meetings• Employee newsletters• Executive Chairman blog
• Social media• Annual Health & Safety Days
• Diversity events: International Women's Day,
Pride Month, Diversity Conference• Employee Resource Groups• Financial incentive scheme, incl. ESG metric

Customers• Quality of products & services• Health and safety• Environment• Competitive pricing•A ccessibility and professional client
management• Customer surveys• Exhibitions and customer days
• Customer newsletters• Sales & marketing activities• Website• Social media• E-commerce sites

Suppliers andPartners• Responsible business practices• Health and safety• Environment• Procurement policies• Supplier Code of Conduct• General terms & conditions agreement• Supplier audits and EcoVadis assessment•C ompliance management, incl. case-by-casecommunication, along our supply chain

Investors andAnalysts• Accountability of strategy execution towardfinancial and ESG targets• Reputation and responsible business practices• Corporate governance• Risk management and compliance• Health and safety• Environment• Overall high-level disclosure quality• Capital allocation and innovation aligned withstrategic ambitions• Annual shareholder meeting• Quarterly information• Roadshows, investor and analyst days
• Engagement with analysts, investors, proxies
and stewardship teams, including individual
ESG engagement meetings• Annual report, including governance andremuneration reports• Sustainability (non-financial) report•C orporate website

Local Communities• Employment• Compliance• Environment• Social Impact•R egular information to local newspapers•S ocial media•L ocal CSR and sponsoring activities•E mployee-driven social projects

Authorities andGovernment
Representatives• Taxes• Responsible b­ usiness practices• Compliance• Health and safety• Environment• Cooperations• Information events• Memberships in local associations• Invitation to local events• Regulatory disclosures and reports

Non-Governmental
Organizations andCivil Society• Environmentally and socially responsible
business practices• Compliance• Health and safety• Environment• Corporate disclosure and communication• Cooperations• Information events• Invitation to local events

19

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SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Accelerated Sustainability Agenda
Our sustainability transparency and commitment have advanced rapidly since our inaugural report,
and they will be further strengthened in the coming years through additional disclosures as we
progress toward our 2030 targets.

4th Sustainability Report(SASB and GRI Standards 2021,
Art. 964a et seqq. CO compliant)

Updated Sustainabilityand HSE Policy

1st Health, Safety andEnvironmental (HSE)
Sustainability Policy

2024

2023

2022

2025
2026

REPORT ON
2030 TARGETS

2021
E-save program
launched within
Polymer Processing Solutions

2019

2016

1st Sustainability
Report(GRI Standards 2016)

3rd Sustainability
Report(SASB and GRI
Standards 2021)

2025: Swiss Ordinance on
Climate Disclosures (TCFD)
2026: EU CSRD (ESRS)

Baselinefor 2030 targets

2004

2nd Sustainability
Report(GRI Standards 2016)

OUR REPORTING STANDARDSStarting with our inaugural report, our Sustainability
Reports have been prepared in accordance with GRI
Standards and, in our 2022 Sustainability Report,
also in accordance with the SASB Standards­category: Industrial Machinery & Goods. For the2023 report, it was prepared according to the GRI
Standards 2021, the SASB standards, and it iscompliant with Art. 964a-c of the Swiss Code ofObligations (CO).
Regulatory and legal requirements for sustainability
and sustainability-related topics are growing. We areclosely monitoring developments and plan toincrease our disclosures and transparency withrespect to our sustainability actions and initiatives.

Global Reporting Initiative
This Sustainability Report is published according to
the internationally recognized GRI Standards 2021.

SASB
SASB Standards guide the disclosure of financiallymaterial sustainability information by companies totheir investors. Effective August 1, 2022, the Value
Reporting Foundation – home to the SASB Standards– consolidated into the IFRS Foundation, which established the first International Sustainability Standards
Board (ISSB). SASB Standards now fall under theoversight of the ISSB.

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Progress on 2030 ESG Targets
Based on the materiality assessment, we have set 2030 sustainability targets for six of the identified
material topics and have been reporting on the progress we have made toward achieving those targets.

ENVIRONMENTAL (OWN OPERATIONS)
2019

20217

2022

2023

2030
Target

12%B

19%

33%

52%

100%

Increasing the share of electrical energy
from renewable sources

n.a.

22%B

30%

35%

100%

Reducing emissions in relevant operations
to become climate neutral 3

60.9B

60.8

50.6

53.8

0

Circular
Economy1

Reducing the share of disposed waste

42%B

31%

28%

27%

21%

Innovation

Increasing the share of R&D investment inproducts that must cover ESG criteria

n.a.

72%B

73%4

78%5

100%

2019

2021

2022

2023

2030
TargetPriority Topics

Objective

Climate &Energy1

Implementing energy management
systems at all relevant sites 2

SOCIAL
Priority Topics

Objective

Employment
Practices

Increasing % of women in management
and leadership roles

12%B

12%

13%

14%

20%

Increasing % of women in high potential
talent programs

24%B

23%

19%

22%

30%

0.88B

0.72

0.75

0.72

< 0.50

2019

20218

2022

2023

2030
Target

n.a.

n.a.

n.a.

n.a.

>95%

91%

97%

95%

96%

Health & Safety Ensure Zero Harm to People– Decreasing the rate of recordable workrelated injuries (TAFR)6

GOVERNANCE
Priority Topics

Objective

Ethics &Compliance

Increasing completion of CoC training,
including on human rights and anti-corruption,
both electronically and in person 7– % of employees who completed e-training

Baseline.
Relevant sites are production and large office sites and exclude small offices (<50 employees). Operational sites include small offices if they reported the data.
In 2023, data from 172 operational sites were consolidated, including one small office and sites acquired in 2023.
2
Energy management systems include both ISO-50001-certified and Oerlikon-defined Energy Management Systems.
3
The climate neutrality target for Scope 1 & 2 emissions in all our relevant operations was defined in 2020. In 2022, we elected to use the GHG emissions intensity
level, which is measured in tons of carbon dioxide equivalent per million Swiss francs of sales (tCO2 e/million CHF), as the key performance metric.
4
R&D investment 2021 excludes provisions.
5
R&D investment 2023 excludes the 2023 acquisition and reversal of accruals.
6
Health and safety data includes data from 187 operational sites, including one small site that have provided environmental data and 15 additional small officesthat have also provided health and safety data, as well as acquired sites.
7
Oerlikon plans to ensure that all employees are trained, both electronically and in person. Face-to-face training was piloted in 2022, and rollout started at Surface
Solutions in 2023. The 2030 target remains unchanged.
8
Excluding 2021 acquisitions.
B

1

21

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SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

ESG Highlights in 2023
ESG RATINGS

29.1
mediumrisk

Sectoraverage21
medium
risk

18.9
low
risk

Previous
score

Current
score(Ranked in top 7% of industrial companies)
as of Dec. 2023

Sectoraverage52

BronzeSectoraverage

Previous
score

C

Previous
score

Current
score(Ranked in top 40% of industrial machinery &equipment companies)
as of Dec. 2023

Sustainalytics

44

C
C–

ISS ESG61

SilverAA

A

Current
score

Sectoraverage(Ranked in top 19% of industrial companies)

Previous
score

AAA

Current
score(Ranked in top 15% ofindustrial machinery companies)

as of Jan. 2023

as of Jan. 2024

EcoVadisMSCI

EMBEDDING SUSTAINABILITY IN REMUNERATIONCURRENT

FUTURE•	Since 2015, our short-term incentive (STI) p­ rogramincludes a safety metric as a modifier for individual
targets. This safety modifier serves to increase management’s focus on the well-being of employees andto motivate employees to pay closer attention tosafety at and outside of the workplace.

•	We continually evaluate whether in addition to thecurrent employee safety metric in the STI, there areother sustainability KPIs that may be relevant for our
strategic goals and can be reliably measured. If so,
we will adjust our management and employee
remuneration system accordingly.

•	Sustainability-related targets are directly included aspart of the STI individual targets for some Executive
Committee members.

•	In 2024, we will run a pilot project to assess which
environmental, social and governance KPIs can be
implemented and measured on an annual basis.
Feasible KPIs will then be implemented in
2025/2026 as part of employee remuneration
packages.

•	We are working toward setting explicit sustainability
key performance metrics for employees.

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

RECOGNITION AND PARTICIPATIONGRI 2-28
EcoVadis
Oerlikon received the Silver award from
EcoVadis, one of the world’s leading providersof sustainability ratings for corporate social
responsibility (CSR).

EqualVoice
Oerlikon is committed to the EqualVoice United
initiative, which advocates gender equality andaims to increase the visibility of women in the
media.

EURATEX
Oerlikon is a partner of EURATEX, the European
Apparel and Textile Confederation, representing
the interests of the European textile and clothing
industry, which has an ambitious program toenhance sustainable growth of the European
textile and clothing industry.

TIME World’s Best Companies of 2023
Oerlikon was ranked among the top 750 global
companies on the TIME Magazine’s list of theWorld’s Best Companies of 2023.

Handelszeitung/PME: Switzerland’s Best
Employers 2023
Oerlikon was ranked by PME and Handelszeitung
as one of Switzerland’s top 250 employers on theirlist of Best Employers 2023.

Bilanz/PME: Switzerland’s Top Innovative
Companies 2024
As a leading global innovation powerhouse,
Oerlikon is honored to be recognized as the third
most innovative Swiss company by Bilanz and
PME.

SUPPLIER SUSTAINABILITY
A key stakeholder along our value chain are our
suppliers. Oerlikon enters into relationships only with
suppliers who agree to our Supplier Code of Conduct(SCoC) and must be able to demonstrate compliancewith the rules in our SCoC, covering:•	
Human rights and social standards, such as childlabor, discrimination, diversity and inclusion.
•	Health, safety and environmental protection, suchas process security and product safety.
•	Appropriate business practices, such as tradecompliance and responsible sourcing of minerals
and metals.
•	Governance, such as risk management and accessto remedy.

In 2023, we• Audited 172 suppliers.
Completed EcoVadis rating for suppliers covering•	
30% of our mapped spend (2022: 20%).
•	Integrated and aligned the supply chain strategy
from the acquired company, Riri.
Identified and trained regional Sustainability•	Champions, who act as single points of contact for
the implementation of sustainability campaigns.
•	Achieved our 2023 goals in our sustainableprocurement road map.
Further information on our responsible sourcing
strategy, processes and actions can be found on
pages 64 to 68.

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SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

Transparency on Non-Financial
Matters
Sustainability has always been an integral part of
Oerlikon’s products and services for customers, aswell as in its operations. Since its inaugural
Sustainability Report 2020, Oerlikon has beentransparently reporting on non-financial matters,
often referred to as sustainability topics, in accordance with the GRI standards, and since its 2022
report, also in accordance with the SASB
Standards.
With Art. 964a et seqq. of the Swiss Code ofObligations (CO) coming into effect, Oerlikon
continues to provide the same transparency on
environmental matters, in particular CO2 goals,social issues, employee-related issues, respectfor human rights and combating corruption. To
facilitate an understanding of how Oerlikon isaddressing the specific topics defined byArt. 964a et seqq. of the CO, we have prepared
an executive summary here and an index on
page 87 for the related content.

BUSINESS MODEL
Oerlikon is a global technology leader for surface
solutions, polymer processing and additive manu-

facturing. Our products and services, together with
our advanced materials, improve the performance,
function, design and sustainability of our customers products and manufacturing process, aswell as those of their customers, in key sectors,
such as tooling, automotive, aerospace, luxury,
energy, general industries, polymers and textiles.
Headquartered in Switzerland and servicing customers from 207 sites in 38 countries, Oerlikon
occupies “sweet spots” in end markets, in which
its innovative technologies serve as high barriers toentry. Leveraging its key competencies in engineering, innovation and people, Oerlikon is driving
mid- to long-term growth by strengthening its
market position and expanding into regions, newend markets and applications.

POLICIES AND DUE DILIGENCE
Oerlikon has several policies and directives, applicable Group-wide, which govern different aspectsof sustainability. For further details on our policies
and compliance with laws and regulations, seepages 74 to 79 in this report. The policies anddirectives can be viewed and downloaded here:
www.oerlikon.com/en/sustainability/our-policies/OERLIKON POLICIES AND DIRECTIVES
Overarching Matters• Sustainability and Health, Safety & Environment (HSE) Policy• Code of Conduct• Supplier Code of Conduct• Responsible Sourcing Policy• Reporting (Whistleblowing) Policy

Environmental Matters• Sustainability and HSE Policy

Social and Employee-Related Matters• Non-Discrimination and Anti-Harassment Policy• Sustainability and HSE Policy

Respect for Human Rights• Policy Against Human Trafficking and Slavery• Policy Against the Use of Child Labor• Human Rights Statement• UK Slavery and Human Trafficking Statement

Anti-Corruption• Directive on Anti-Corruption and Anti-Bribery• Policy on Avoiding Conflict of Interest• Policy on Global Antitrust Compliance• Directive on Unannounced Inspections

SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

CONFLICT MINERALS
Under the Swiss Ordinance on Due Diligence andTransparency in relation to Minerals and Metals
from Conflict-Affected Areas and Child Labor(DDTrO), companies or groups that import and process quantities of minerals and metals, such as tin,tantalum, tungsten or gold (3TG), in excess of certain thresholds are subject to due diligence andreporting requirements. A company or group isexempt from these requirements if the minerals
and metals do not originate from conflict-affectedor high-risk areas.
Oerlikon monitors, reviews and documents its
metal and mineral activities on a regular basis,including with respect to whether they are
conflict-related. Based on the results of these regular monitoring activities, Oerlikon has concluded
that it is exempted from the due diligence andreporting obligations under Art. 964j et seqq. of
the CO.

utive ranks and organizational structure. The Boardof Directors has defined five primary objectives for
the Risk Management System:
1.	Secure the company’s continued existence andprofitability by creating a transparent risk profileand continuously improving and monitoring it.
2.	Contribute to improving planning andsupporting the better achievement of targets.
3.	Secure revenue and reduce potential riskrelated expenses, which safeguards andenhances the company’s value.
4.	Align total risk exposure with the company’s
risk-bearing capacity and ensure that the riskreturn ratio of business activities is transparent.
5.	Protect the company’s reputation.

OPERATIONAL AND SUSTAINABILITY RISKS
With regard to operational and sustainability risks
Oerlikon’s risk management covers:•	
Additional costs/warranties.
•	Technology risks.

CHILD LABOR
Under the DDTrO, companies are obliged to check
whether there are reasonable grounds to suspectchild labor and, if such grounds exist, to adhere to
the due diligence and reporting obligations.
Companies are exempted from this obligation if
they can prove that the services and products provided to them originate from countries with a low
risk of child labor.
Oerlikon monitors, reviews and documents its supply
chain regularly regarding any suspicion of child labor.
Based on the result of these regular monitoring activities and checks, Oerlikon has concluded that it isexempted from the due diligence and reporting obligations under Art. 964j et seqq. of the CO.

MAIN RISKS AND MEASURES UNDERTAKEN
Oerlikon takes a company-wide, holistic approachto the identification, assessment and managementof business risks. All organizational units and theirbusiness processes and projects are evaluatedacross the entire spectrum of market, credit, operational and sustainability risks.
Oerlikon uses a Risk Management System to integrate risk management within the company’s exec-•	Legal risks, including competition and anti-trust

law, patent law, tax law, environmental protection
law, trade control law and data protection law.
•	
Supply chain risks, including disruptions andprice increases.
•	
Loss of key people/shortage of qualified
skilled staff and managers.
•	Social issues on a local or global scale,including human rights and corruption.
•	
Climate change risks that could put assets at
risk, and risk related to counteracting/­mitigating
the change/transition to a lower carbon economy, as well as in relation to increasing cost due
to policy/regulatory changes.
•	
IT security, including preparedness for­cyberattacks.
For further information on operational risk management, please refer to pages 71 to 72 in the Annual
Report 2023.

RISKS RELATED TO BUSINESS RELATIONS
We address the main risks and required measures
regarding suppliers by way of our collaboration with
EcoVadis. The EcoVadis methodology covers 21
ESG criteria (see box on page 67). Similarly, the 21
ESG criteria in the EcoVadis methodology provide
us with the framework for addressing anticorruption

25

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SUSTAINABILITY REPORT 2023
02 Our Commitment to Sustainability

risks and measures, including ethics, anti-competitive practices and responsible information management.

For further details on the targets and their progress, see pages 3 and 21 of this report.

For conflict minerals, Oerlikon complies with the EU’s
Conflict Minerals Regulation (2017/821), and it had
already taken steps that anticipated its concerns.
We have instituted a Conflict Mineral policy and voluntarily implemented due diligence measures acrossour supply chain, such as those advocated by theOECD in its Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected
and High-Risk Areas, as well as US legislation.

REPORTING SCOPE

In keeping with our commitment to corporate
responsibility and upholding human rights acrossall operations, we seek to ensure that our suppliers
source 3TG minerals exclusively from mines inconflict-free areas.

In its 2024 report, Oerlikon plans to disclose its
Scope 3 emissions, Science Based Targets
initiative (SBTi) target and other climate issues
defined by the Swiss Ordinance on Climate
Disclosures, in which Art. 3 specifies that companies can make disclosures based on the recommendations of the Task Force on Climate-Related
Financial Disclosures (TCFD).

We expect our suppliers to establish and implement policies and due diligence measures thatassure they supply us with conflict-free 3TG products and components in compliance with the
Responsible Business Alliance (RBA) Code of
Conduct and our Responsible Sourcing Policy. For
further details on supply chain risk, please refer topages 64 to 68 in this report.

MAIN PERFORMANCE INDICATORS
Oerlikon set sustainability targets for 2030 andhas been reporting on their progress in the company’s sustainability report that it publishes
annually. The targets addressing Art. 964a et
seqq. of the CO are depicted in the table below.

The sustainability report is prepared in accordancewith GRI Standards 2021 and SASB Standards.
The annual report and sustainability report cover all
wholly owned and majority-owned entities.
Oerlikon’s 2023 annual report and sustainability
report are published in English and is available atoerlikon.com/sustainabilityreport-2023.

ASSURANCE AND APPROVAL
PricewaterhouseCoopers AG has provided limited
assurance on 2023 Selected Indicators in the
Sustainability Report 2023 (including the GHG statement) for the period ended 31 December 2023. The
independent practitioner’s limited assurance report
can be found on pages 99 to 101.
The Sustainability Report 2023 has been approved by
the BoD and will be put to an advisory vote by shareholders at Oerlikon’s 2024 AGM, which will be held at
ENTRA, Rapperswil-Jona on March 21, 2024.

2030 TARGETS
Environmental Matters

Five environmental targets for 2030:• Implementing energy management systems at all relevant sites.
• Increasing share of electricity from renewable sources.
• Becoming climate neutral in relevant options.
• Reducing the share of disposed waste.
• Increasing the share of R&D investment in products that contribute to ESG.

Social and EmployeeRelated Matters

Two diversity targets and one health & safety target for 2030:• Increasing % of women in management and leadership.
• Increasing % of women in high-potential talent programs.
• Ensuring zero harm to people.

Respect for Human Rights
and Anti-Corruption

A 2030 target requiring employees to complete their training on Oerlikon’s CoC,
which is intended to ensure ethical compliance and correct behavior, including
on human rights and anti-corruption topics:•	>95% of employees are to complete CoC training both electronicallyand in person

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

03

27

Our Environmental
Commitment

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SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

Sustainable Products
GRI 3-3

SDGS IN FOCUS:SIGNIFICANT INDIRECT ECONOMIC
IMPACTSGRI 203-2

equipment, tools and luxury accessories, increased
usage of recycled fibers and materials, and reductionof waste and CO2 emissions.

At Oerlikon, our strategy is to pursue sustainable
innovation in collaboration with our customers sothat they, their customers and industries are
empowered to increase efficiency, optimize
resource use, reduce waste, and/or decreaseenergy and water consumption.

A large number of our products and solutions in
our end markets continue to deliver sustainable
benefits over their life span, be it for months or
years. For example, our coating for tools canCase Example:

As the global population continues to grow and is
projected to exceed 10 billion by 2100, the middle
class will further spark rising demand for energy,
food, clothing and other consumer products. As aconsequence, international trade will respond to thislifestyle trend and trigger the need for manufacturingsolutions that are efficient, productive, profitable anddesigned to support a sustainable circular economy.

INNOVATION FOR BIOPOLYMERS AND SUSTAINABLE
MATERIALS
Collaborating with Wittmann Battenfeld,
Haidlmair and Borealis, Oerlikon innovated a
3-component coffee-to-go cup that is lighterand made of sustainable materials. Using
cutting-edge molding technologies, the cup is
only 2 mm thick, yet has exceptional thermal

SUSTAINABLE PRODUCTS

performance.

As a leading global technology company, we­engineer solutions that contribute to a more­sustainable planet. With our global footprint, we
operate 207 sites in 38 countries, providing jobs formore than 12 600 employees.

Another sustainable solution using Oerlikon
HRSflow technology is the development of anenvironmentally friendly Salt&Pepper flip-top.
This product is made from polylactic acid biopolymer, which is derived through the controlled
fermentation of carbohydrate sources such as

We serve a broad scope of end markets, including
tooling, automotive, aerospace, luxury, energy,­polymer processing and textiles. With a portfolio of
equipment, components and services that­encompasses surface engineering, advanced­materials and fiber production, we promote greater
efficiency in energy consumption, longer lives forcorn starch or sugarcane. A significant challenge
in using bio-based and biodegradable polymers
is their high thermal and shear sensitivity. To
overcome these challenges, the focus was on
eliminating material degradation risks and shortening cycle times by yielding a good gate quality.

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

extend the lifetime of tools by 20 times, equivalent
to the reduction of around 8.3 million metric tonsof CO2 or 28% of Swiss CO2 emissions in 2022.
Our high-tech abradable coatings in jet engines
increase aerospace engine operation safety andreduce fuel consumption, thereby decreasingaround 26 million metric tons of CO2 emissions or
88% of Swiss CO2 emissions in 2022. Collectively,
just two of our solutions save more CO2 emissions
than the amount of Swiss emissions in 2022.

Case Example:
ADVANCING THE HYDROGENECONOMY
Metco 6820UF is a metal powder for coating
components used in solid oxide fuel cells(SOFCs) and solid oxide electrolyzer cells(SOECs). SOFCs can combine hydrogen withoxygen in the air to generate electricity. The
powder is utilized in screen printing and tape

Our Polymer Processing Solutions Division began
its e-save program in 2004, focusing on advancing
sustainable innovation in terms of energy,­economics, the environment and ergonomics. One
such innovation is our durable WINGS (Winding
Integrated Godet Solution), which enables cus­
tomers to save energy consumption by as much as
40% during the yarn manufacturing process.
As a technology leader, we are constantly­developing new products and upgrades that ­deliver
efficiency and sustainability. In 2023, we invested
around 4% of our sales (CHF 103 million) in R&D
and filed 78 new patents. Oerlikon’s R&D is driven
by three priorities: customer needs, market potential and environmental concerns.
An example of our products launched in 2023
include EvoSteam for staple fibers production,offering customers environmental benefits fromcasting processes.
Oerlikon is also working with a team of engineers from major global players in the polymer
electrolyte membrane (PEM) electrolyzer market
to further research on coating solutions forbipolar plates used in production and storage
systems for green hydrogen and fuels.

energy savings to waste and water consumption
reduction (see case study on page 31).
For our PVD coating, we signed a ten-year ­contract
with IPT Aero in 2023 to increase the service life ofengine components, making engine turbines more
efficient and reducing CO2 emissions.
To maintain and improve the aero engine’s turbine
efficiency and prevent the need to drive the turbine

Environment

Industry, Innovation and Infrastructure

Case Study:
COST-EFFECTIVE ALLOY FOR CAR BRAKE DISCS TO REDUCE HARMFUL FINE DUST
The automotive industry is under increasing pressure to reduce emissions of harmful fine dust particles produced
during braking. With evolving regulations and environmental concerns, the use of protective coatings on brakediscs is becoming increasingly important to minimize the release of these particles.
Metco Joining & Cladding has developed a unique alloy using its proprietary Rapid Alloy Development software.
This new material is tailored to cladding cast iron brake discs, adaptable for high-speed laser cladding techniques.
Notably, Metco 9501A does not contain elements like nickel, cobalt or copper, which are still part of conventional
material concepts for brake disc coatings and environmentally harmful. This also means that Metco 9501A not only
fulfills the requirements of the upcoming EURO 7 emission standards, but also meets expected tightened REACH­regulations. Bench tests indicate that Metco 9501A coatings can significantly reduce fine dust emissions by up to 90%.

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SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

harder to meet the power output requirement,
thereby limiting the need for additional fuel usage
and emissions, Metco Joining & Cladding introduced a laser cBN tipping solution used inhigh-temperature clearance-control applications.

Case Example:
PT. KAHATEX INVESTS IN RPETSOLUTION
PT. Kahatex, one of Indonesia’s largest manu-

For e-mobility, lightweight construction is a key
advantage, promoting the use of glass-reinforced
composites (GF) as a preferred material replacing
conventional metal for car parts. With our coating
for forming tools, such as BALINIT MOLDENA, we
are part of the solution for the manufacturing of
FRC-made auto parts.

facturers of woven and circular-knitted fabrics,
has a long-standing commitment to environmental responsibility. In 2023, the company
started operating a recycled PET (rPET) systemfrom Oerlikon, which mechanically recycles PET
waste, including post-industrial materials like
“popcorn”, bottle flakes and films. This innovative technology transforms these materials into

For a car manufacturer in China, Oerlikon Balzers
BALITHERM PRIMERFORM coating increased thesurface hardness of the injection mold used to
produce the headlight of a car from a leading­
German brand. With BALINIT C, the maintenancecycle was extended by more than 1 000%, greatly
reducing the use of polishing paste (waste) andenvironmental impact.

predictive maintenance and service, and components to be used until the end of their lifespan.

Another smart and award-winning coating (Magna
Innovation Award) from Oerlikon is the thin-film
coating with sensors for real-time monitoring of
automotive components. With around 100 miniature sensors in modern cars, sensor arrays can be
integrated on the components themselves using
thin-film coatings, capturing data on load, temperature, pressure, etc. The real-time data enables

In this report, you can find many more examples
and case studies of how our technological ­solutions– often developed in collaboration with customers
and partners – are contributing to sustainability by
reducing carbon footprints, enhancing the performance of equipment and production systems,
reducing the use of energy and resources, as well
as minimizing waste generation.

high-quality textile chips, suitable for reusing in
producing POY (Partially Oriented Yarn) andDTY (Drawn Textured Yarn).

Environment

Responsible Consumption and Production

Case Study:
MULTIPLA FIXTURE FOR RECONDITIONING TOOLS SAVES UP TO 50% TARGET MATERIAL
Reconditioning and recoating used machining tools conserves material resources and energy. MULTIPLA, a newmodular fixture specifically designed for recoating drill heads and mill tips, enhances material and energy savings.
MULTIPLA can accommodate different types of tools and significantly increase each fixture’s loading capacity by
up to 250% per recoating process. With traditional fixtures, the recoating process would also cover parts of thetools that do not need recoating, leading to material waste. MULTIPLA’s flexible clamping mechanism allows forcoating lengths for each tool to be individually adjusted, ensuring that only the worn parts are coated.
Overall, the application of the new MULTIPLA fixtures for reconditioning tools not only boosts efficiency, but also
has the potential to reduce material usage by up to 50% and leads to a 63% shorter coating process time,­resulting in considerable energy savings. Currently, tests are underway to adapt MULTIPLA for use with other tools,
such as stick blades and indexable inserts.

SUSTAINABILITY REPORT 2023
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Environment

Responsible Consumption and Production

Case Study:
EAFK EVO: DESIGN MODIFICATION DELIVERS 25% ENERGY SAVINGS
By further improving the components of the eAFK Evo texturing machine, Oerlikon provides additional energy
savings for customers. The eAFK Evo delivers superior speeds, greater productivity and consistently high productquality, along with lower energy consumption and simpler operation vis-à-vis comparable market solutions.
The modifications include the HTI Heater and the Evo Coolers, where the yarn is stretched and heat-treated, which
is a prerequisite for texturing, and which are decisive core elements for the quality and efficiency of the equipment.
The eAFK’s radically new design enables a more consistent heat input, and thus a more consistent yarn quality,
while its encapsulated design is highly energy efficient, enabling a reduction of up to 25% of energy consumption.
Moreover, the SmartGodets of the eAFK Evo have been enhanced. The individually controllable godets offer more
flexibility when operating the machine with yarn since it is no longer necessary to collectively operate all godets.
This, combined with the special string-up mode, can reduce downtime during maintenance by 65%. The highly
efficient single inverters further enable greater energy efficiency and better yarn quality.

Environment

Industry, Innovation and Infrastructure; Climate Action

Case Study:
A MULTITUDE OF ENVIRONMENTAL SAVINGS WITH EVOSTEAM: AFFIRMED BY BLUESIGN® LABEL
Premiered at ITMA in Milan in July, Oerlikon’s pioneering EvoSteam process for manufacturing PET staple fibers
was developed to lower operating expenses and the carbon footprint by minimizing the consumption of energy,
water and polymer, while ensuring the excellent fiber qualities required for downstream processes and high-­
production volumes.
EvoSteam can increase efficiency by up to 12%, reduce production waste by up to 50% and provide up to 8%
of energy savings. Additionally, it can result in water savings of up to 3.2 million liters per annum and a loweringof the carbon footprint by up to 20%. This system clearly provides fiber manufactures with a multitude ofenvironmental savings that can support them in achieving their sustainability targets.
The savings are realized by replacing the immersion bath with spray nozzles, an optimized draw point release forhigher production speeds and a focus on dramatically reducing the waste generated when manufacturing.
This system received the bluesign verified data label. To qualify for this label, the innovative energy- and resource-­
saving process had to undergo strict data verification. Moreover, all polyester staple fibers produced with
EvoSteam process will actively contribute to the bluesign system in the future.

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SUSTAINABILITY REPORT 2023
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Qualification of Sustainable
Products
At Oerlikon, we see combating climate change
similar to engaging in groundbreaking R&D: if initial
results are not fully aligned with expectations, weanalyze the data and extract the lessons learned
that we could use to attain optimal outcomes. Data
collection and development of methodologies
empower us to see where we are hitting our­performance benchmarks and where we need tomake further efforts and investments in sustainable
innovation solutions.
Oerlikon serves customers in the automotive,­tooling, luxury, textile, polymer processing, space,oil & gas, and aviation sectors, the last of which
has customers in the defense industry. In each, ourtechnologies help customers minimize their­environmental and social impacts using the bestin-class approach. Sales from the defense and oil& gas sectors account for less than 5% of our total
revenue.
In 2021, we defined the criteria to assess the­sustainability of our products, dividing them into
three categories:• Our tool coatings, whose objective is toimprove customers’ production processes froma sustainability perspective and thus contributeto responsible consumption and production.
• Our component and materials business, whose
objective is to enable sustainable applications
or enhance the overall system to mitigate climate change, such as lowering CO² emissions
in aerospace.
• Our equipment business, whose objective is tosupport more sustainable production.

criteria, as tools with standard coatings or
high-performance coatings can outperform
uncoated tools by up to tenfold. Comparisons ofour tool coatings with industry standards ­identified
some gaps – most already known – that­contributed to our blueprint for R&D investments
in next-generation coatings.
The component and materials business encompasses precision components, friction systems
components, the materials business and additive
manufacturing. This category covers a broad
scope of our products. Thus, we have defined thecriteria based on product application. A product isconsidered sustainable if it improves the overallsystem compared to industry standards in one ormore of the following areas: energy consumption,social impact, waste, emissions or service time. If
no industry standard exists for comparison, theproduct is not classified as sustainable.
For our equipment business, we deem products assustainable if they lessen environmental impact­relative to the industry standard in terms of one ormore of the following: raw materials consumption,energy use, water consumption, social impact,
waste, emissions or service time.
In 2022, we introduced an additional evaluation
process for R&D initiatives involving two tiers ofevaluation.
In the first tier, projects directly supporting green
technologies and transitions, such as phasing out
fossil fuels, advancing e-mobility, improving safety
and health care or reducing waste, are ­automaticallyclassified as sustainable.
In the second tier, we consider:

We consider our tool coatings sustainable if they
improve at least one area, such as raw materials
consumption, energy consumption, emissions orservice duration, while delivering the same or ­better
performance than the industry standard.
Our consolidated data shows that all our tool
coatings improve at least one of the environmental• Impact of projects: If the product resulting fromthe project enables customers to shorten
development time, operate more sustainably(e.g. reducing CO2) or improve performancewith an indirect positive sustainability impact(e.g. less waste from fewer test parts), it is­categorized as sustainable.

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment• Research goals: In collaboration with universities or in projects supported by public funding,if the goal is to enhance products or their performance, they are classified as sustainable.

Total 2023 R&D Investment1
in CHF million
23

22%

81

78%

• Digital benefits: If the machine learning or­software solutions and upgrades can reduce
scrap and energy consumption, they are considered sustainable.
Conversely, if cost reduction is the sole aim of agiven project, it is deemed unsustainable.
Based on these criteria for products and projects,
78% of our total R&D investment in 2023 was insustainable products.

	In sustainable products based on
Oerlikon-defined criteria.
In other R&D products and activities.
1

Excluding 2023 acquisition and reversal of accruals.

These criteria and classifications enable us to identify challenging areas and guide our investment insustainability. We continue to collaborate with ourcustomers on the delivery of solution upgrades thatwill strengthen our technology leadership. At thesame time, we will work toward our 2030 R&D target, where 100% of our R&D spend (except for
defense and oil & gas) is on sustainable products.

Environment

Industry, Innovation and Infrastructure; Climate Action
Case Study:
TRACEABILITY AND SUSTAINABILITY IN FASHION, APPARELS AND TEXTILESThe EU strategy for sustainable and circular textiles looks at the entire life cycle of textile products and proposes
actions to change how we produce and consume textiles. One of its visions is that by 2030, the textiles sector iscompetitive, resilient and innovative, with producers taking responsibility for their products along the value chain
and with sufficient capacities for recycling and minimal incineration and landfilling. Among other requirements, an
EU digital product passport will be introduced to provide information about a product’s environmental
sustainability.
Partnering with the Swiss company Haelixa, Oerlikon can today provide customers with manmade fiber systems,
where the fibers are traceable and verifiable along the entire value chain.
An essential part of the solution is Haelixa’s DNA marker technology. Unique DNA carrying the data of the yarn’s
components, qualities, manufacturing conditions and origin is fed into the POY or FDY spinning process, forexample with the spin finish oil. This DNA is irremovable and impervious to falsification or alteration. The DNA
data is stored in atmos.io, Oerlikon’s digital platform, which records and evaluates extensive production andprocess data during the yarn manufacturing process.
Thus, any claim of origin, recycling, manufacturing and quality can be verified and physically traced, which
provides transparency throughout the textile value chain until repurposing or the end of life of the product.

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SUSTAINABILITY REPORT 2023
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Qualification Process of
Sustainable Products
We have broadly classified our solutions into three
categories: tool coatings, component and materials business and equipment business.

The flowcharts below depict the process and­criteria we have defined to enable us to determine
which of our solutions are to be classified as­sustainable.

TOOL COATINGS
Our product improves the customer’s production process in terms of sustainability.
Product

Does it improve the production process in at least
one of these dimensions: raw materials consumption,energy consumption, emissions or service time, without a negative effect on one of the other dimensions?

Does it have the same or better performance than the industry standard,predecessor product or best-in-classcompetitor product?

Y

Y

N

COMPONENT AND MATERIALS BUSINESSOur product is applied in a sustainable field or improves the overall sustainability of a system.
Component/materials

Is it used in a sustainable
field, such as renewableenergy or medical?

Is it applied in acontroversiallydiscussed field?

N

Is the overall system better compared tothe industry standard, predecessor productor best-in-class competitor product?

N

Y

Y

EQUIPMENT BUSINESSOur product delivers sustainability benefits in production.
Equipment

Does the equipment reduce the environmental impact compared to the industry standard, predecessor product or best-in-class competitor product in at least one of the following dimensions: raw materials consumption, energy consumption, water consumption, social impact,
waste, emissions or service time, without a negative effect on one of the other dimensions?
Y

Classified as a sustainable product

Classified as other products or activities

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

Environment

Responsible Consumption and Production; Climate Action

Case Study:
NEW PLANT IN WUXI DESIGNED TO MINIMIZE IMPACT ON THE ENVIRONMENT
Oerlikon Polymer Processing Solutions inaugurated a new plant in Wuxi, China, in August. The facility was
meticulously constructed from scratch, including all operational processes, from the initial design to theconstruction stages.
With a strong focus on environmental, health and safety aspects, this facility aims to significantly reduce theenvironmental footprint of its services and products throughout their entire life cycle. It also aspires to create asecure and healthy working environment for every employee.
For instance, a specialized sustainability team conducted an in-depth analysis of the environmental impacts
associated with the production of heater boxes. They identified the primary pollutants and exhaust gases, such as
smoke from welding, grinding dust, volatile organic compounds from penetrating test materials and oil mist fromthe CNC processing center. Additionally, ultrasonic baths and hydraulic fluids were found to be the main con­tributors to water contamination. In response, a mobile gas purification system was installed, and impulse bag­filters now capture a substantial amount of the grinding dust. Furthermore, a comprehensive large-scale filter­system was implemented to eradicate volatile organic compounds, and a sophisticated water treatment system
was introduced to recycle the wastewater.

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SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

Environmental Sustainability
in Operations
GRI 3-3
Oerlikon has long been dedicated to developing
sustainable innovations and technologies, often incollaboration with external partners and ­customers.
We recognize the need to apply those same­principles of innovation to our own operational­processes and systems and to reduce the impactof our business on the environment.
Our overall strategy for reducing energy consumption and CO2 emissions relies on optimizing efficiency on both small and larger scales. That canmean anything concerning infrastructure (fromtransitioning from diesel to electric forklifts to repurposing recovered heat from combined heat andpower systems) and/or process optimization in
operations (industrial/production processes).
In 2020, we set ambitious targets to achieve by 2030:(i) Implement ISO-50001-certified or Oerlikondefined energy management systems(EnMS) at all relevant sites.
(ii) Use electrical energy derived exclusively fromrenewable resources.
(iii) Reduce the share of disposed waste to
21% of total waste.
(iv) Achieve climate neutrality by reducing­emissions in our operations.
The first two of our environment targets – implementing EnMS at all our relevant sites and ­switching

to purchasing and consuming energy solely fromrenewable resources – combined with other­energy-saving and emission-reducing initiatives,
are designed to support our efforts toward achieving our climate-neutral target in our operations.
For all environmental targets, we consider all production and large office sites as relevant (relevantsites) and generally exclude all small offices (fewer
than 50 employees), as it is neither economicallynor sustainably prudent to have such systems
implemented for small offices. We have in somecases included the data of small sites that havegathered and provided the figures. Together, these
are called operational sites, for which we have­provided consolidated environmental data.
In 2023, the key environmental performance datafrom 172 operational sites were consolidated,
including one small office. That represents anincrease of 17 sites, mainly due to sites acquiredsince the baseline year (2019: 155 sites). No datafrom minority-owned sites were included in 2023.
Our progress in 2023 in environmental metrics is
detailed in the following sections of this chapter.
We will continue to work toward improvements inenergy efficiency and reductions in energy­consumed, resources and waste – and toward
our targets.

Environment

Affordable and Clean Energy
Case Study:
ILLUMINATING EFFICIENCY WITH LED LIGHTING
Among many energy-saving initiatives, the switch to more energy-efficient LED technology is straightforward andnecessary, particularly following bans on incandescent bulbs in certain regions and countries.
At our Oerlikon HRSflow sites in Byron Center, Michigan, USA, and San Polo di Piave, Italy, the shift to LEDs saved
87 622 kWh/year in energy and approximately CHF 9 700 annually. Three Oerlikon Balzers sites in France – SaintQuentin-Fallavier, Duttlenheim and Limoges, and the site in Balzers, Liechtenstein – achieved energy savings of morethan 128 000 kWh/year by switching to LEDs.
The shift to LED lighting not only reduces electricity consumption but also cuts down CO2 emissions, underlining
Oerlikon’s commitment to environmental sustainability.

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

ENERGYGRI 302-1,3,4; GRI 3-3; SASB RT-IG-130a.1
In 2023, our operations, consisting of 172 operational sites, consumed a total of 429.9 GWh ofenergy. This represents an increase of 5.2% compared to 408.6 GWh in the 2019 baseline year, anda very slight increase of 0.2% compared to 2022,
due to the additional sites from acquisitions.
Excluding acquisition, we reduced energy consumption in our operations in 2023 by 2.9%. In
2023, the percentage of energy Oerlikon consumed
that was supplied from grid electricity was 75.8%.
Our target of implementing EnMS at all Oerlikonsites considers the installation of EnMS only at­relevant sites (i.e. large production and office sites),
as it is neither economically nor sustainably ­prudent
to have such systems implemented for small­offices. The target included both ISO-50001certified and Oerlikon-defined EnMS.
The Oerlikon-defined EnMS is a stringent but­lighter version, mirroring the energy management
standards defined by ISO 50001. The definitions of
this system are documented in an internal guideline
endorsed by management to regulate non-ISOsites. The local entities have the option to decide if
they would implement ISO 50001 or the Oerlikondefined EnMS.

In 2023, 36 sites implemented EnMS, bringing thetotal number of Oerlikon sites with EnMS to 90, or
52% of our total operational sites. These sites
account for 81% of Oerlikon’s total energy­consumption. In 2023, 25 of our sites consumed
together around 50% of our total energy used, andall 25 sites have EnMS in place.
An EnMS allows us to address our energy impact,conserve resources and improve cost through­efficient energy management. It is designed as apractical way for our sites to track, monitor andanalyze their energy consumption so as to identify
and implement improvement measures.
ENVIRONMENTAL AND ENERGYCERTIFICATIONS AS OF
DECEMBER 31, 2023
No. ofSites% of Total
Operational
Sites

Oerlikon-defined standard

70

41%

ISO 50001

20

12%

Total

90

52%

ISO 14001:2015
Environmental Management
Systems

52

30%

EnMS according to:1

1

Differences in total reported figure due to rounding.

Environment

Responsible Consumption and Production

Case Study:
LEVERAGING ADAPTIVE 3D ADVANCED CONTROL FOR OPTIMUM ENERGY MANAGEMENT
Industrial air compressors, essential for production, often use outdated mechanical regulations. These com­pressors activate when air pressure falls below a set threshold and run until a predetermined point is reached.
This ­inflexibility results in operating more machines than necessary, excessive energy use and at unnecessarily
high pressures.
To address these inefficiencies, an intelligent air management system, Sigma Air Manager 4.0, was installed at
the Oerlikon Balzers site in Pune, India. Its adaptive 3D advanced control dynamically regulates air compressor­operations, always ensuring maximum energy efficiency. Not only starts and stops are taken into consideration,
but also the idling and frequency converter losses. Moreover, the compressed air system’s pressure values are
optimized and the average pressure is reduced. This upgrade yielded an average annual reduction of 23% in­electricity consumption compared to the old air compressor, the equivalent of a decrease of over 53 metric tons
in CO2 emissions and total annual savings of more than CHF 8 000.

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SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

Energy consumption within the organization1

Electrical power– Electrical power from renewable sources consumed
Natural gas

2023

2022

20212

2019

Unit

Total

Total

Total

Total

GWh

326.9

325.9

309.7

313.2

GWh

113.5

97.2

68.8

n.a.

GWh

60.2

60.8

64.8

38.9

Heat and cooling purchased

GWh

14.6

14.2

14.8

25.9

Gasoline and diesel

GWh

23.1

23.0

21.2

24.0

Other energies

GWh

5.1

4.8

8.6

6.6

Total energy consumption

GWh

429.9

428.8

419.0

408.6

1
2

Differences in total reported figure due to rounding. All figures include acquisitions, except for 2021.
Excluding 2021 acquisitions.

An EnMS provides a framework of requirements foreach site to:• Develop a policy for more efficient use of energy.
• Fix targets and objectives to meet the policy.
• Use data to better understand and makedecisions about energy use.
• Measure the results.
• Review how well the policy works.
• Continually improve energy management.

An example of EnMS adoption, Oerlikon Eldim in
Debrecen, Hungary, achieved a 14% reduction inmachinery energy consumption compared to theprevious year, thanks to the implementation of anenergy monitoring system.
We engage in ongoing analysis to identify further
successful practices that can be implemented
across the Group and obstacles to reducing ­energy
consumption that we need to manage more

Environment

Affordable and Clean Energy

Case Study:
ACCELERATING THE SHIFT TO RENEWABLES THROUGH ROOFTOP SOLAR PHOTOVOLTAICS
To reduce the environmental impacts of fossil-fuel-based electricity, a number of our sites have been graduallyconverting to use solar as a renewable source of energy.
In 2023, our Oerlikon Textile site in Vadodara, India, implemented rooftop solar photovoltaic systems. The
installation generated more than 400 MWh of electricity since the end of 2018, saving over CHF 31 000 in thefirst 4.5 years and cutting CO2 emissions by 162 metric tons in total, which is akin to planting 4 848 trees.
In Europe, Oerlikon Balzers sites in Balzers, Liechtenstein, in Saint-Quentin-Fallavier and Limoges, France, andthe Oerlikon HRSflow site in San Polo di Piave, Italy, adopted similar initiatives. Around 400 MWh was collectively
generated by the panels at the French sites, replacing energy that was normally purchased, and resulted in theequivalent of 23.4 metric tons of CO2 emissions reduction. In Italy, the solar system is projected to reduce the­carbon footprint by 52 500 kWh and achieve over CHF 10 000 in annual savings.

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment­ ffectively. Our system for monitoring energy cone
sumption at sites across the Group includes datacollection on electricity usage on a monthly basis
and other energies on a quarterly basis.

Case Example:
NEW AIR TREATMENT SYSTEM
REDUCES GAS CONSUMPTIONAND EMISSIONS

Oerlikon’s energy-consumption tracking system not
only analyzes energy use, but also provides a breakdown of the proportion of electricity derived fromrenewable sources.

The Oerlikon Balzers site in Limoges, France,
recently replaced its air treatment system,
resulting in savings in gas consumption andemission reductions.

In 2023, 35% of our total electricity consumed was fromrenewable sources, representing an improvement of
13% points compared to our baseline of 22% in 2021,
and an improvement of 5% points compared to 2022.
In terms of consumption, we increased the purchase ofrenewable energy by 17% from 97.2 GWh in 2022 to113.5 GWh in 2023, attributable to eight sites that have
converted to renewable energy and improved the dataprocess and quality. To date, a total of 26 sites ­worldwide
are using energy solely from renewable sources for­electricity.
At many sites, our local teams are active in­implementing energy-saving measures. These indi­vidual instances (see case studies and examples in­boxes) may seem to deliver only minor benefits.
Collectively, they make an impact in contributing toenergy savings. In 2023, such initiatives resulted in
2.4 GWh of energy savings.

The system, which is essential for maintaining
a stable working environment in temperaturesthat often reach 30°C, had reached the end of
its operational life and required significant maintenance, resulting in high costs. In addition, thegas heating system consumed substantial
amounts of fossil fuel energy.
With the new installation, an annual reductionof 78 MWh (higher heating value – HHV) in­natural gas consumption could be achieved, theequivalent of a reduction of 34.5 metric tons of
CO2 per year. The HHV describes the total
amount of heat energy that can be generated
when a fuel is completely burned. It includes
the heat released from both the fuel itself andthe latent heat of vaporization of water, which isformed during the combustion process.

We are on track with our goals and remain committed
to achieving our 2030 targets: to have 100% of our
relevant sites with EnMS implemented and to derive
electrical energy solely from renewable sources.

Environment

Responsible Consumption and Production

Case Study:
ADVANCING WASTEWATER RECYCLING WITH ULTRAFILTRATION TECHNOLOGY
Recycling wastewater is increasingly being implemented in industrial operations, offering both environmental andeconomic benefits. By turning waste into a resource, industries can reduce water consumption and contribute tosustainable water management.
At the Oerlikon Balzers site in Manesar, India, we have implemented an ultrafiltration unit to recycle previously
unused water, including the rejected water from the reverse osmosis plant, and treated effluent water and overflow
from the cooling tower. Thanks to the circular initiative, the site can supply recycled water to the demineralization(DM) plant, cooling tower and garden, achieving savings of 780 m3 of water per year.

39

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SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

WASTE
GRI 306-1,2,3,4,5

CIRCULAR ECONOMY
GRI 3-3

We began reporting on GRI 306 Waste 2020 in our
Sustainability Report 2020 and have set ourselves
the target of reducing the share of waste disposedin 2030 to 21% of total waste, representing a 50%
decrease compared to the 2019 baseline of 42%.

At Oerlikon, we see the future of sustainability as
inextricably linked to circular economy innovations,
regenerative practices and advanced recycling
management. Circular approaches are therefore
central to our strategy for optimizing our environmental performance.

In 2023, we disposed 27% of our total waste, astrong improvement compared to the 42% in thebaseline year and a slight improvement compared
to 2022 (28%), despite acquisitions. Total waste
includes diverted waste (recycled and reused) anddisposed waste (incinerated with and without­energy recovery and landfilling). Waste data from172 operational sites were consolidated in 2023.
The share of waste disposed means the total weightof waste directed to disposal by Oerlikon calculated
as a percentage of the total weight of waste­generated by the Group. Currently, many of thewaste-reduction initiatives are implemented locally.
For example, the Oerlikon Riri team have ­previously
been disposing most of their waste. In 2023, they
started the initiative to recover acetal resin andpolyester yarn waste at the plant in Tirano, Italy.

We are exploring circular solutions that convert ourwaste streams into raw materials for use in otherindustries. In our supply chain, we are purchasing
recycled materials for reuse.
To achieve our hazardous waste goal, multiple
units across Oerlikon work to recycle or recoverwaste streams for reuse.
As we define the processes and measures to­systematically gather and analyze data, identify
measures and report on waste, we seek to work inparallel, and also within our ongoing Scope 3­project, to improve circularity along our value chain.

We are continuously improving the quality of ourreporting on waste and working closely with sitesthat have a high level of disposed waste (in ­absolutevalues) to identify solutions. We continue to ­identify
measures and work toward achieving our 2030
waste target.

2023

2022

20212

2019

Waste1

Unit

Total

Total

Total

Total

Hazardous waste

Kilotons

11.5

10.2

10.2

11.6

Non-hazardous waste

Kilotons

11.5

13.2

11.9

11.3

Total waste generated

Kilotons

23.0

23.4

22.1

22.9

Total waste diverted from disposal

Kilotons

16.7

17.0

15.2

13.3

Total waste directed to disposal

Kilotons

6.3

6.5

6.9

9.6

Share of waste disposed

Kilotons

27%

28%

31%

42%

1
2

All data includes acquisitions, except for 2021.
Excluding 2021 acquisitions.

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

WATER AND EFFLUENTS
GRI 303-1,2,3
Oerlikon’s operations do not require the use of­significant amounts of water for production or­processing. As a result, water is not considered amaterial area where we can make a meaningful
impact.

800

700

At the same time, we recognize that there are communities around the world struggling with water
scarcity. Thus, we seek opportunities to optimize
water management overall across our sites andparticularly in water-stressed locations.

600

In 2021, we expanded our water assessments toinclude an analysis of water stress. Using the World
Resources Institute’s Aqueduct Water Risk Atlas
tool, we mapped out and assessed our operational sites according to the level of baseline water
stress of the local watershed. The tool helps us
identify which of our sites are in water-stressed
areas. With the data, we can monitor and take thenecessary measures to better manage water­consumption and mitigate water risk, particularly inhigh-risk areas.

400

Of the 172 Oerlikon operational sites in 2023,
37 are located in areas facing extremely high levelsof water stress; 16 are in high water-stressed
areas; 43 are in areas with medium to high levelsof water stress and 76 sites are in low and medium
to low water-stressed areas.

362.6

500

115.9

300
98.5

200
26.9

100

165.3

0
2023

Water Withdrawal in WaterStressed Areas (thousand m3)
Extremely highHigh
Medium to highLow to medium
Low

Environment

Responsible Consumption and Production

Case Example:
IMPLEMENTING GOOD PRACTICES TO REDUCE WATER CONSUMPTION
Although water consumption is comparatively low and not considered material at Oerlikon, many of our sites do
evaluate if and how water consumption can be reduced to improve operational sustainability.
As an example, the Oerlikon Fineparts site in Maîche, France, reduced water consumption by implementing a circular­system that reuses rinse water in the galvanic process. By integrating such water management into operations, the siteachieved a 30% reduction in water consumption over the last five years. At an Oerlikon Eldim site in Hungary, water­consumption was reduced by 50% over two years by installing automatic sensor taps in social rooms.
In our coating process, we are working on reducing around 50% of wastewater by removing suspended articles andcleaning the baths during operation, thereby extending the water change intervals.

41

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SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

2023

2022

20212

2019

Total

Total

Total

Total

Water Withdrawal1

Unit

Third-party water withdrawal

Thousand m3

748.0

756.4

707.0

700.2

Surface water

Thousand m

3

7.0

7.4

7.8

11.8

Groundwater

Thousand m

3

14.3

2.8

2.6

4.1

Sea water

Thousand m3

0

0

0

0

Produced water

Thousand m

3

Total water withdrawal
1
2

0

0

0

0

769.3

766.6

717.4

716.2

Differences in total reported figure due to rounding. All figures include acquisitions, except for 2021.
Excluding 2021 acquisitions.

In 2023, total water withdrawal increased compared to our 2019 baseline, mainly due to theacquired sites added. In terms of usage, around165.3 thousand m3 of water was consumed byour sites from extremely high water-stressed
areas, and 26.9 thousand m3 was withdrawn inhigh water-stressed areas, representing 21% and
3% of our total water consumption worldwide,
respectively.
For water discharged, we fully comply with local
regulatory requirements and regularly perform
compliance checks on effluent discharged when
conducting our health, safety and environmental
checks.

22%
31%

9%

13%

25%

Distribution of Water Withdrawal 2023
(as % of total sites)
Extremely highHigh
Medium to highLow to medium
Low

Environment

Responsible Consumption and Production

Case Example:
MINIMUM 90% WASTEWATER REDUCTION ACHIEVED THROUGH EVAPORATION UNIT
The disposal of wastewater often creates additional and potentially risky work for employees and incurs costs
related to transportation and compliance with legal requirements.
The installation of a new evaporation unit at the Oerlikon Balzers site in Kędzierzyn-Koźle, Poland, contributed toreducing wastewater by at least 90%, which resulted in annual savings of CHF 76 000. The equipment also minimizes waste and emissions that would have been generated from the documentation and transportation of wastewater. Moreover, the treated water from the evaporation process can be reused in our cleaning operations, thus
creating a fully sustainable cycle.

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

EMISSIONSGRI 305-1,2,4
Reducing Consumption and Emissions
Oerlikon supports customers who share our commitment to achieving carbon neutrality and count on
our innovations to help them advance toward theirenvironmental goals. The products and services webring to market are designed to minimize their environmental impact over the entire life cycle and along
the value chain, encompassing direct and indirect
customers.
We are equally aware of our own environmental
obligations and have committed to achieving­climate neutrality for Scope 1 and 2 in 100% of our
relevant operations. We are measuring this basedon greenhouse gas (GHG) emissions in relation tosales. Thus, our goal is to achieve zero GHG emissions and emissions intensity (in tons of CO2 equivalents per million Swiss francs of sales) by 2030.
In service of this goal, we are optimizing sustainable
practices in our operations, which can be as simple
as turning off the air conditioner during nights and on
weekends. At the same time, we engage inpractices that reduce our carbon footprint in sales,delivery and maintenance. This is one of our reasonsfor locating Oerlikon sites in close proximity to customers – an approach that strengthens customer
service capabilities and helps to reduce emissions.

We also encourage individual employees toembrace sustainability through measures such asproviding secure parking for those who choose tocommute by bicycle and charging stations for
those who drive electric or hybrid cars.
As part of our sustainability efforts, we recognizethat it is important for us to identify our climate
impact along our value chain (see diagram below).
On this route to climate impact reduction, we havea clear understanding of our Scope 1 and 2 GHG
emissions, which we have been disclosing,­together with our GHG emissions intensity levels,
since our inaugural 2020 report.
We have also mapped out how we intend toachieve our 2030 climate neutrality target for
Scope 1 and 2 in our relevant operations (see­diagram on page 44).
Scope 1 and 2
Our Scope 1 emissions are direct GHG emissions
from owned or controlled sources of the Group,
excluding emissions from small offices whose
emissions are negligible. Scope 2 encompasses
indirect GHG emissions from electricity, steam,heat and cooling purchased by the Group.
Our GHG emissions intensity levels are measured
in tons of carbon dioxide equivalents (tCO2e) per
million of sales in Swiss francs for total Scope 1

ROUTE TO CLIMATE IMPACT REDUCTION
Scope 1

Scope 2

Scope 3

ProcureNon-GHGElectricity

Basket of
Scope 3Scope
1, 2 and 3

2023
EmissionsOperational
Innovations

Logistics,
Travel, etc.

Efficiency
Measures

Technical/
cost-effective
solutions forprocessesthat today
require GHG
emissions

Reduce travel,
digitalization,
efficientlogistics, etc.

Operational
efficiencies
and switching
to renewableenergy onsites~18.9 kt of CO2

Switch net
GHG+ fuels to
renewable/
GHG-neutral
fuels

Quantifying
2022 and2023­emissions;plan todisclose in
2024 report~126.1 kt of CO2

Being assessed

Customers & Supply Chain

Offset Scope
1 and 2­remainder
Oerlikon may
seek to offset
the remaining
emissionsRemaining
Emissions

43

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SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

2030 Operational Environmental Targets (Scope 1 & 2)

100%

100%
Relevant sites withenergymanagement
systems+

Electrical energy
from renewablesources

Small %

100%+

Reduction fromother energy-saving
and emission
reduction
initiatives andactions

and 2 emissions (see page 45 and 88 of the report).
In 2023, emissions data from 172 operational sites
were consolidated.
Our Scope 1 emissions increased by 27% in 2023
compared to the baseline, mainly due to acquiredsites. Compared to 2022, Scope 1 emissions
slightly decreased by 0.5%, despite acquired sites.
In 2023, we reduced our Scope 2 emissions by
12% compared to our 2019 baseline and lowered
the emissions by 2% compared to our 2022 level,
despite acquisitions. The improvement in emissions
levels is attributed mainly to the ­continued shift
toward purchasing and using renewable energy.
In terms of GHG emissions intensity for Scope 1
and 2, which is the metric we are using for our­climate-neutral 2030 target, we have lowered thecarbon intensity of our operations in 2023 (53.8tCO2e/million CHF) compared to 60.9 tCO2e/million
CHF from the 2019 baseline year. Compared to2022 (50.6 tCO2e/million CHF), 2023 saw a slightincrease in intensity due to lower annual sales.
Among our 172 sites, 83 are using the market-based method to report on their Scope 2 emissions, while 89 sites are using the location-based
method, as they do not have contractual information that meets the Scope 2 quality criteria.
Our indirect emissions are attributed mainly toelectricity bought for all sites, heat bought at a few
sites and cooling bought at a handful of sites. Our+

Potential
offset remainderof Scope 1 & 2

100%

=

Climateneutrality inoperations

direct CO2 emissions stem from the combustion ofnatural gas and oil for heating purposes, emissions
from diesel and gasoline for vehicles (private use
excluded) and hydrocarbon gases for specific­production processes, such as thermal spray.
Gases such as propane or acetylene that are usedin the Oerlikon Balzers’ thin-film coating processes
become part of the surface and are not combusted.
Since these gases do not react with oxygen, they
are not considered a form of energy (but rather­process gases) and therefore do not generate CO2
and are excluded from the emissions measurements for the environmental metrics reporting.
In measuring our CO2 emissions, we follow thedefined unit by the GRI Standards, which is tCO2e.
Unlike a number of other industrial companies, we
do not use F-gases in our production processes.
For example, we do not use sulfur hexafluoride(SF6) gas, which is an insulating gas for electricalequipment. These gases are considered much
more damaging GHGs than CO2, with a negative
impact of about 22 000 times that of CO2. Thus,
our CO2 emissions can be considered “real” CO2emissions and not CO2-equivalent emissions(which is how SF6 would be classified).
Scope 3
In 2021, we took the first steps toward reporting on
Scope 3 emissions and started the process withthe appointment of an external partner to work withus on an initial assessment of the 15 categories of
Scope 3 emissions, based on 2020 data.

SUSTAINABILITY REPORT 2023
03 Our Environmental Commitment

2023

2022

20212

2019

Emissions1

Unit

Total

Total

Total

Total

Direct CO2 emissions (Scope 1)

Kilotons CO2 eq

18.9

19.0

19.5

14.9

Indirect CO2 emissions (Scope 2)

Kilotons CO2 eq

126.1

128.1

141.5

143.0

Total Scope 1 and Scope 2 GHG emissions

Kilotons CO2 eq

145.0

147.2

161.0

157.9

Scope 1 and Scope 2 GHG emissions intensity

Tons CO2 eq per
million CHF sales

53.8

50.6

60.8

60.9

1
2

Differences in total reported figure due to rounding. All data includes acquisitions, except for 2021.
Excluding 2021 acquisitions.

The assessment involved first gathering data fromsubject-specific experts and having it evaluated,
including performing a sanity check. Following that,the emission sources were compared to the­emission factors in the ecoinvent Database (lifecycle inventory), the US Environmental Protection
Agency’s (EPA) GHG Emission Factors Hub­document and the UK Department for Business,
Energy and Industrial Strategy (BEIS).
Following this first assessment, we now understand Scope 3 emissions along our ­value chain.
From this initial assessment, four of the 15 cate­gories were considered not applicable, while the­other 11 were quantified.

Case Study:
ABATING VOC EMISSIONSWITH REGENERATIVE THERMALOXIDIZERWith the installation of a Regenerative Thermal
Oxidizer (RTO) at the Oerlikon Riri site in
Mendrisio, Switzerland, we were able to cut
down volatile organic compounds (VOCs)­emitted into the atmosphere from chimneys in
the lacquering department. Operating on­methane gas, this fuel-efficient RTO decom­
poses hazardous gases at high temperatures,
effectively eliminating a significant portion of air
pollutants in the emissions.

To be able to identify the areas that we can best
­influence and make the most meaningful contribution
in reducing emissions, we are tackling the next steps
systematically.

Achieving an over 77% reduction in our carbon
footprint, which is equivalent to about 10 tonsof VOCs per year, this initiative also facilitates
our compliance with Switzerland’s stringent air

We are presently working with an external partner toassess and quantify our Scope 3 categories for thecalendar years 2022 and 2023, which is expected tobe completed by the middle of 2024. We intend to
disclose Scope 3, in line with the TCFD requirements,
in our Sustainability Report 2024. Similarly, we plan tocommit and submit to SBTi in 2024.

emission regulations.

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SUSTAINABILITY REPORT 2023
04 Our Social Commitment

04

Our Social
Commitment

SUSTAINABILITY REPORT 2023
04 Our Social Commitment

Responsible Employer
GRI 3-3

SDGS IN FOCUS:EMPLOYMENTGRI 2-7,8; GRI 401-1,2;
SASB RT-IG-000.B
2023 was a challenging year in our end markets,
and we took actions to protect our business andprofitability. This, unfortunately, meant that we had
to let go of some employees. As a responsible
employer, it was important for us to manage theprocess in a respectful and fair manner.
Equally important for us was that we continued todeliver our quality products and services to customers, maintain our strong innovation pipeline andfulfill our commitment to Diversity, Equity and Inclusion (DEI). It remains an objective for us to work
toward our 2030 gender diversity targets and­nurture promising careers through our professional
development programs for employees identified ashaving leadership potential.
An Employer of Choice for Global Talent
Oerlikon’s global workforce numbered 12 620 fulltime equivalents (FTEs) at the end of 2023, a slightincrease of 3.6% compared to the previous year
due to the acquisition of Riri.
59% of FTEs were based in Europe, followed by
27% in Asia-Pacific and 14% in the Americas. The
majority of Oerlikon’s employees (>94%) are­permanent employees.
Further employment data (headcount), including
breakdowns by permanent, temporary, full-time andpart-time, as well as by regions and gender, can befound on pages 90 to 93. Data for employees with
non-guaranteed hours is not available since thisgroup is very small and thus, Oerlikon does not track
this information.
As an equal opportunity employer, Oerlikon offers
attractive compensation and benefit packages toall employees, including temporary and part-time
employees, as well as apprentices and interns, incompliance with local labor laws and practices.
Parental leave is also part of the employment­package in line with local labor regulations andpractices.
TIME World’s Best Companies 2023
In 2023, TIME launched its inaugural list of theWorld’s Best Companies, in partnership with
Statista, a leading international provider of market
and consumer data and ratings. The prestigious
ranking is based on a comprehensive study,
focusing on three core pillars: employee satisfaction, revenue growth and sustainability (ESG).
Approximately 150 000 participants in 58 countries
were surveyed. Out of 5 000 companies, Oerlikon
was ranked 641, among the world’s top 750­leading organizations recognized by TIME.
The evaluation process was exhaustive and inclusive, covering direct and indirect recommendationsof companies from a diverse array of employees.
The methodology included aspects such as­company image, work environment, working conditions, compensation and equality.

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SUSTAINABILITY REPORT 2023
04 Our Social Commitment

Handelszeitung/PME Best Employer 2023
Oerlikon was ranked by Handelszeitung and PME (inpartnership with Statista) as one of Switzerland’s
250 Best Employers 2023. The ranking is based ondata collected through online access panels anddirectly from the media outlet’s website, capturing
information on more than 1 500 employers, each
employing at least 200 people within the country.
Over 15 000 employees participated, representing abroad regional and social demographic. This accolade reaffirms our dedication to providing a diverse,
inclusive and equitable workplace for employees.
PME/Bilanz Top Innovative Companies 2024
As a leading global technology company, Oerlikon
was proud to be named as the third most innovative
Swiss company by Bilanz and PME (in collaboration
with Statista). A total of 8 900 people, comprising
employees and innovation experts, provided feedback on 500 companies in Switzerland based on
general innovativeness, product innovation andinnovation culture.
The honor of being recognized as the third mostinnovative company across Switzerland and themost innovative in the sector of Electronic andIndustrial Engineering attests to Oerlikon’s unwavering commitment to innovation and the formidable
strengths we have cultivated in this domain.
Employee Engagement Positively Impacting
CultureWe run periodic surveys to assess employee
engagement and identify opportunities for continued improvement. The most recent employee survey was conducted in 2022 with the theme “Your
Voice Matters”; it had a 72% participation rate.
Using the survey results and feedback as a starting
point, 2023 consisted of robust follow-ups at teamlevel to identify current challenges and measureprogress. Looking forward, we aim to continuously
facilitate best-practice sharing across the organization, further enhancing employee engagement andnurturing the Oerlikon culture.
Embedding Desired Behavior in Our Culture
Drawing from feedback gathered from two­employee engagement surveys, along with input
from targeted interviews, we developed the six
concise Success Statements from the Oerlikon
Success Model.

To embed the Success Model into our culture andperformance, the success statements were integrated into employees’ performance evaluations.
Doing this enables us to reinforce our culture andvalues and identify where additional investment isrequired. To ensure transparency and accessibility
across the organization, the performance evaluation system is available in ten languages.
Additionally, we deployed visual aids, such as­posters and stickers, to deepen the understandingof the Success Model. In 2023, posters in 23 languages were strategically placed throughout thecompany’s sites worldwide to inspire and engage
employees with the Success Statements.
Talent Acquisition
The post-pandemic global recruitment landscape
has necessitated greater efficiency and organization in talent acquisition. We rose to this challenge
by leveraging a mix of tools, technologies andstrategies.
The use of HireVue, an AI-powered platform withvideo interviewing, scheduling and candidate
assessment features, continued to play a key rolein our remote and virtual recruitment and onboarding processes.
In 2023, 54% of our acquisitions were sourced over
online platforms such as LinkedIn and Indeed, and
6% of new hires stemmed from these digital platforms. The transformation into a more digital
approach for recruitment has led to significant­savings compared to conventional recruitment
methods.
To attract local talent, we have refined our approachin markets where we operate. For example, in theUS, we employed Spanish-speaking recruiters
in the talent acquisition process for predominantly
Spanish-speaking communities. This regionalization makes hiring decisions at the local level
more efficient and effective.

DIVERSITY AND EQUAL OPPORTUNITYGRI 405-1
Oerlikon is dedicated to cultivating a work environment where every employee feels secure, comfortable and can genuinely be themselves.

SUSTAINABILITY REPORT 2023
04 Our Social Commitment

As part of our DEI initiatives, the Inclusion in Action
program has been active since its successful
launch in December 2021. In 2023, we recorded
a 15% increase with around 80 participants. Spanning three sessions and available in both English
and German, the program aims to heighten individual awareness of inclusive perspectives and to pinpoint areas most susceptible to unintentional andsubconscious biases through inclusion sequence
analysis of workplace procedures and practices.
Inclusion in Action now holds a permanent spot in
our training catalog and can be booked on demand
for specific teams or regions. We anticipate­incorporating the program into our compulsory
training curriculum by the first half of 2024.
Employee Resource Groups (ERGs) are internal
communities of workers with shared identities andinterests, and their main goals are to advocate forthe underrepresented group they represent and help
increase the opportunities they get within theworkplace.

ENRICH@Oerlikon aims to act as a cultural bridgefor employees worldwide, focusing on diversity
objectives, intercultural matters and professional
development of teams.
The Oerlikon Women’s Council is dedicated toadvancing women’s interests and nurturing talented
women as the organization’s future leaders.
Proud@Oerlikon is committed to ­fostering a safe,
inclusive and supportive environment for all, regardless of their sexual orientation, gender identity or
expression.
Parents@Oerlikon offers support for employees
balancing both work and caregiving or parenting
responsibilities, in line with the company’s belief
that a supportive work culture can result in amore satisfied, engaged and productive workforce. The primary aim of MultiGen@Oerlikon is topromote cross-generational collaboration. Its
members span Generations X, Y and Z, as wellas Baby Boomers, working together to address
challenges.

SocialGender Equality
Case Study:
EMPOWERING AN EQUAL FUTURE: OERLIKON’S WOMEN IN LEADERSHIP PROGRAM

As an Equal Voice signatory, Oerlikon is committed to gender equality in business and has set targets that include
increasing female representation in top leadership to 20% by 2030. In line with this objective, we have been
actively identifying professional women with future leadership potential and supporting early career planning tofoster internal talent growth among junior female staff.
To fulfill our commitment to developing high-potential women for senior management roles, we completed a
Women in Leadership pilot program in August 2023. The pilot program, consisting of two 2.5-hour online
sessions, covered various subjects, including the barriers women face in male-dominated environments, strategies
for thriving in such industries, understanding different leadership styles, achieving sustainable personal leadership,
engaging productively in strategic networking, mastering personal branding and self-marketing and forging acareer path that aligns with both professional and personal priorities.
Run by members of the Oerlikon Women’s Council, the pilot saw participants representing a diverse cross-sectionof business units and corporate functions. Following the success of the pilot, it is planned to roll out the programin 2024 with an expanded program, allowing more time for internal and external keynote speakers and subsequentdiscussions.

49

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SUSTAINABILITY REPORT 2023
04 Our Social Commitment

Each of these ERGs plays a crucial role in uniting
employees with shared interests, ensuring organization-wide awareness and appreciation for the diverse
perspectives within Oerlikon’s workforce.

SENIOR MANAGEMENT IN LOCALCOMMUNITIESGRI 202-2
We have long recognized the direct link between
our internal diversity, our capacity to innovate andour market position. Cultural and geographicaldiversity align not only with our values, but also with
our value proposition as a company that derives
strength from the different backgrounds, experiences and areas of expertise within our workforce.
Our global workforce in 2023 was represented by
105 nationalities (2022: 102). Among our leadership team, 19% of our designated Global Leaders
were non-European (2022: 18%). Oerlikon aims tofurther its regional expansion, particularly in its
Surface Solutions Division, so as to realize upsidesales potential in the regions by leveraging thecompetitive advantages of its integrated offeringand broad technology portfolio.
The regional decision-making framework also
supports Oerlikon’s goal of facilitating more crossteam and cross-business collaboration. By doing
so, we are able to achieve business and personnel
benefits in tandem. Customers gain access to amore comprehensive portfolio of materials, technologies, equipment and solutions, while employees gain exposure to a greater range of perspectives, expertise and ideas. The net effect is a moreengaging and satisfying working environment.
Diversity Conference
In November, led by the culture-focused employee
resource group ENRICH@Oerlikon, we hosted ourthird Diversity Conference, called “Connect”, to celebrate the diverse cultures, backgrounds and perspectives that constitute O­ erlikon’s fundamental
strengths. Together, we explored the significance of
cultural diversity for us as individuals, within teams
and across our company. Attended by approximately 400 participants, the three-session conference commenced with a panel discussion, featuring top company leaders who shared insights on
the impact of cultural diversity on their personal andprofessional development. This was followed by aninteractive talk on intercultural communication, conducted by a speaker from Engineers Without
Borders, emphasizing the influence of different cultures and learning attitudes on professional behavior. The afternoon session featured an interactive webinar about harnessing cultural diversity tobuild successful international teams, presented bya renowned author and consultant.
Gender and Sexual Diversity
We remain committed to strengthening gender
diversity on the Board, at senior management level
and across the company. In 2023, two out of eight
members (25%) of the Board were women, while
one out of five members (20%) of the Executive
Committee was female. During 2023, Oerlikon’s
global workforce (FTEs) increased by 3.6% to
12 620, of which 25% were female (2022: 24%).
Achieving gender balance remains challenging
given the predominance of men in engineering. Our
overall workforce is largely male (75%) and womenaccount for 14.3% of management and leadershiproles (2018 baseline: 12%).
We actively work on improving gender diversity
and making Oerlikon an attractive workplace forwomen. To that end, we strive to increase the number of women in leadership positions within thecompany through a variety of initiatives.
On March 8, Oerlikon hosted a virtual International
Women’s Day that featured three presentations,each followed by a Q&A session. The first presentation delved into mental health concerns, focusing
on how to identify and counteract self-limiting
beliefs that can lead to stress and unhappiness.
Additionally, attendees received guidance on­making micro-commitments to support progress
towards greater fulfillment. The second session
addressed reproductive health and how ­progressive
employers can best support it. The third session
gave an overview of the company’s travel policy,
emphasizing practices that ensure women feel safe
while traveling for business.
To commemorate the International Women in
Engineering Day, regional “Lunch and Learn”
events were held on June 23. Members of the­Oerlikon Women’s Council took on the role of presenters in each region, facilitating both Q&A andbrainstorming sessions with attendees. Discussions centered on shared challenges, such as

SUSTAINABILITY REPORT 2023
04 Our Social Commitment

combating discrimination, and strategies to sustain resilience in a male-dominated field.
Additionally, participants deliberated on the measures Oerlikon can implement to bolster careeradvancement for women in science, technology,
engineering and mathematics (STEM).
Following the success of Oerlikon’s inauguralobservance of Pride Month in 2022, the company
expanded its celebrations and activities in 2023.
Two live virtual events held on June 27 provided
employees with the opportunity to learn about thehistory of Pride, understand the importance ofbeing out and proud for LGBTQ+ employees in theworkplace and discover how colleagues can­promote ally visibility.
Oerlikon is also among the signatories of­Switzerland’s Trans Rights pledge, and employees
participated in the 2023 annual Christopher Street
Day parade in Cologne. This event commemorates
the Stonewall Uprising in New York City, which­ignited the birth of the LGBTQ+ rights movement.
Age Diversity
At Oerlikon, age is never a factor in hiring andemployment decisions. Our Company is proud of
its age diversity.
In 2023, approximately 15% of our workforce wasaged 30 or younger, 57% were between the agesof 30 to 50 and 28% were over 50 years of age.
Our equal opportunity approach to age (as well
as all protected characteristics), demonstrated
appreciation of talent and career growth opportunities has resulted in a higher level of workplacesatisfaction among our employees.
As of the publication of this report, 14% of ouremployees have been employed with Oerlikon for
20 years or more (2023: 1 961; 2022: 1 702). This
demonstrates the long-term opportunities we offer
our employees. The average employee tenure at
Oerlikon is 9.78 years (2022: 9 years) – notably
longer than the industry average.
Disability Inclusion
At Oerlikon, we are deeply committed to ­embracing
inclusion and actively seeking diverse future ­talents,
including those with disabilities or chronic illnesses.
We value individuals for their abilities and do notjudge them based on their impairments.

As a partner company in the myAbility Talent­Program Germany 2023 – the first barrier-freecareer initiative for students and academics withdisabilities or chronic illnesses in the DACH region– our Surface Solutions Division received 30 applications, interviewed 10 potential candidates and­proceeded with three in the recruiting process.
Piloted in the summer of 2023, the Polymer ­Processing
Solutions Division launched an apprenticeship andinternship program specifically tailored to candidates
with disabilities. In close collaboration with local institutions, we welcomed one intern with a hearing
impairment and an apprentice with an autism spectrum disorder to join the Oerlikon team. Additionally,
we have strengthened our cooperation with local support institutions, including a special needs school for­children with neurodiversity and learning difficulties.

TRAINING AND EDUCATIONGRI 404-1,2,3
Employee Training and Development
Skill enhancement and professional development
programs are as essential to our market successas they are to our employees’ ambitions. Oerlikon’s
employee training and development programs
include in-person and online learning and careerdevelopment options, such as workshops andcourses designed to upgrade existing skills, andsessions that provide transition assistance.
Employee training is part of the individual’s careerand personal development planning, which is built
into the performance reviews conducted at least
twice a year between employees and their line
managers. During these developmental conversations, the line managers can connect to the online
training catalog to discuss, for example, formal
training options and/or review other on-the-job
development and growth opportunities or special
projects. Our training catalog focuses mainly on
soft skills for leaders and office workers. Training
for technical work, such as machine operation, is­handled locally in line with the operating p­ roceduresof that country. The reviews are documented in the
SuccessFactors system or, where SuccessFactors
is not in place, in manual individual development
plan templates.
In the US, we utilize the RedVector learning management system for health and safety ­training, as

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well as for leadership development programs, providing employees with access to an extensive
library of e-learning courses and opportunities toconnect with additional external vendor libraries. In
2023, we incorporated some knowledge qualifications for the sales organization and an orientation
program for human resources. Looking ahead, ourplan is to also utilize this system to assign prework
to our production manager training.
In 2023, we continued to use digital training tools
and platforms, such as Udemy, to offer employees
the chance to learn remotely from any location, on
any device and at any time.
Apprenticeships
Oerlikon continued to seek out the next generationof talent even before future young professionals
have entered the workforce. In cooperation with anumber of schools, colleges and universities worldwide, we make hands-on, intensive apprenticeships
and internships available to emerging innovators.
High-Potential Talent Programs
Launched in 2018, Oerlikon’s career accelerator
program, Horizons, continues to nurture emerging
talent through an 18-month course. In addition tooffering career path assistance, its focus includes
developing leadership and business skills, creating
visibility at senior levels and building networks.
The first 37 graduates completed the program in
December 2019. The second wave, consisting of
25 participants, completed the modified program
due to the pandemic in May 2022. The third wave
commenced in December 2023 and is expected to­conclude in 2025. This cohort is notably diverse,
consisting of 30 participants, including 10 womenand 15 individuals from non-EU countries.
As part of the Horizons program, teams are formed
to work on specific business projects over six
months. These projects are based on current, reallife business topics, allowing participants to contribute ideas to the business and products, or to
identify solutions to address challenges. At the endof this period, they present their ideas and explain
how they would implement the project. These­proposals are then applied to the business.
Since its launch, more than 65% of the graduates
have been promoted or have taken on additionaljob responsibilities.

In the Polymer Processing Solutions Division, Loop
5 of the two-year OMF+ program commenced in
September 2022 and is scheduled to conclude inlate 2024. Throughout the program, 35 highpotential participants are engaged in strategic­projects, webinars and on-site training. ­Additionally,
mentoring sessions are conducted at various­locations during the program’s duration.
OERLIKON RISE
The RISE program was launched in 2022 to ­develop
high-potential, regional-level talent in preparation for
positions within national or regional management
teams. The first cohort commenced the program in
the summer of 2022 and completed it in October2023.
In this inaugural wave, 156 individuals nominatedthemselves and underwent a three-gate validation
process. This process included:
1.	obtaining line manager permission, completinga self-assessment and an online test;
2.	submitting a video application, undergoingline manager evaluation and participating ina structured interview; and finally3.	securing approvals and endorsements fromHR and leadership.
Of the 57 participants who made it to the final­selection (26 from Europe, 15 from the Americas
and 16 from Asia-Pacific), 20% were women.
RISE focuses on enhancing participants’ leadership skills and business acumen. Through various
business projects, participants gained hands-on
experience and a deeper understanding of­strategic decision-making, further equippingthemselves for the roles of the next generation ofcompany leaders.

LABOR MANAGEMENT RELATIONS,FREEDOM OF ASSOCIATION AND
COLLECTIVE BARGAINING
GRI 402-1, GRI 2-30; GRI 407-1
Oerlikon has operations in 38 countries and respects
the legal rights of its employees to form, join or
refrain from joining worker organizations, including
labor organizations or trade unions. ­Oerlikon complies with applicable local laws worldwide regarding
employee and third-party ­involvement, and will not

SUSTAINABILITY REPORT 2023
04 Our Social Commitment

discriminate based on an employee’s decision to join
or not join a labor organization.
Oerlikon respects the rights of employees to organize
and makes managers at all levels aware of thoserights. The company’s long-standing belief is that theinterests of Oerlikon and its employees are best
served through a favorable, collaborative work environment with direct communication between employees and management. Oerlikon endeavors to establish these kinds of favorable employment conditions,to promote positive relationships between employees
and managers, to facilitate employee communications and to support employee development.
Oerlikon also respects its employees’ rights to takepart in collective bargaining. We abide by legallybinding collective agreements. We also ensure that
employee representatives do not suffer discrimination and that they have open access to membersin the workplace.
For its employees who are not covered by ­collective
bargaining agreements, Oerlikon determines theirworking conditions and terms of employment
based on local employment conditions in line withlocal laws and regulations.
An estimated 45% of our employees were coveredby collective bargaining agreements in 2023 (2022:
45%).
Pertaining to minimum notice periods regarding­operational changes, we have refrained from p­ roviding
more detailed information as each local agreement issubject to local laws and regulations. Overall, we­satisfy the minimum legal requirements in each
respective country, and in some countries, we evenexceed the minimum requirements set by local laws.

INFRASTRUCTURE INVESTMENTS
AND SERVICES SUPPORTED
GRI 203-1, GRI 3-3
Oerlikon has a global footprint of 207 sites in
38 countries. Oerlikon’s presence in communities
throughout the world gives us a global outlook on
how social and service needs vary from one country or community to another. Our local teams identify opportunities to engage with local communities
and give back through a combination of fundraising and volunteer efforts.

In 2023, we continued to encourage community
engagement and volunteer initiatives, both locallyand worldwide, to respond as needs arise.
In the aftermath of the devastating earthquake in
Turkey and Syria in February 2023, we ran aGroup-wide fundraising campaign. This resulted ina donation of CHF 36 000 to AHBAP, a local charity organization that was established to provide allkinds of help to those in need, working with a­value system based on solidarity, sharing, caring
and belonging.
In India, we organized a tree plantation drive andplanted over 600 saplings of native tree species toaddress local environmental needs and preserve
biodiversity. We also distributed educational­materials to underprivileged children and established a mini science center in a school in a tribalarea. In the realm of healthcare, we donated­dialysis machines to a charitable hospital and­provided financial assistance to disadvantaged
children needing heart surgery. Furthermore, topromote gender equality in rural regions, weoffered vocational training to women, enhancing
their livelihood opportunities.
In Brazil, a team of Oerlikon employees in São José
dos Pinhais donated computer and video equipment
to the “Amélias” social project, initiated by the local
NGO Respeito Não Tem Cor. These devices provide
vulnerable women and victims of domestic violence
digital access to resources, such as legal support,
counseling, curriculum development, craft courses
and more. Additionally, the team in Brazil organized acollection of Easter chocolates among employees forthe local orphanage Lar Mãe Maria, which cares for
52 at-risk children and adolescents.
Continuing their good work of the past years, teammembers in Italy further engaged in regular fundraising activities to support I Bambini delle Fate.
This community organization provides economic
support to help people who are living with­disabilities or neurodivergent conditions.
In the US, our Westbury colleagues sponsored a
local organization that provides school supplies forchildren to begin their fall semester. In Lake Orion,
Michigan, we joined forces in a fundraiser ­organizedby St. Jude Children’s Research Hospital during
Childhood Cancer Awareness Month, which
achieved a notable collection of USD 100 000.

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SUSTAINABILITY REPORT 2023
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Moreover, we also engaged with students and­children locally in a number of countries. At theLong Island Manufacturing Day event, the ­Westbury
team showcased our products and presented
potential career paths at Oerlikon to local highschool students from 31 school districts.
In April, the Oerlikon team in Suzhou, China, hosted
its first School Open Day, welcoming college
students from Xi’an Jiaotong University and Jiangsu
University of Technology. Through in-depth­­discussions with our colleagues, some of whom arealumni of these universities, the students were offered
the opportunity to understand Oerlikon’s businesses
and experience the day-to-day operations at aworld-leading technology and engineering company.
In Wohlen, Switzerland, we introduced the­fascinating world of thermal spray on Swiss National Future Day to children aged between five and­seven. After learning about the various operational
processes, they were offered the chance to maskup, grit blast and spray a drink bottle as a souvenirof this fun and educational day.
In Germany, we welcomed over 30 young womenon the national Girls’ Day across six of our ­locations,providing the opportunity to learn more about oursurface solutions, additive manufacturing, ­polymer
processing solutions and digitization. The aim ofthe day is to inspire and motivate young women toenter professions where women have traditionallybeen underrepresented.
As these examples demonstrate, engaging withlocal communities and performing philanthropic
and charitable work are not just core corporate­values at Oerlikon, they are also central to the­feelings of personal responsibility to society foundin many of our employees. We support and applaud
their generosity in engaging with and providing­services to their communities.

SUSTAINABILITY REPORT 2023
04 Our Social Commitment

55

Health & Safety
GRI 3-3

OCCUPATIONAL HEALTH & SAFETY
GRI 403-1
Oerlikon’s ongoing health and safety (H&S) oversight is designed to maintain an attractive and safe
workplace for our employees, as mandated by theGroup’s Executive Committee and Board of Directors (BoD) and in keeping with our core values.
As our “Zero Harm to People” target suggests, we
strive to ensure that no direct or indirect employees,
contractors or visitors come to harm at Oerlikon’ssites or while working for us at external locations.
This ethos extends to our impact on the commu­
nities in which we operate. In keeping with the­principle that all injuries and occupational illnesses
can be avoided, we implement workplace programs that promote health-conscious behavior.
To fulfill our commitment to providing a safe andhealthy working environment, we engage in ongoing actions to:• Continually improve Oerlikon’s HSE performance.
• Meet or exceed legal and Oerlikon’s HSE
requirements.
• Assess and manage all risks in relation to H&S.
• Work systematically to apply the parameters,
processes and tools defined by the Groupwide, division and local H&S directives andguidelines, and within the scope of an H&S­management system.
• Provide relevant H&S training to all employees.
• Conduct regular performance reviews.

H&S is a core component of Oerlikon’s Code of
Conduct, which is detailed in the Ethics & Integrity
section of this report (page 74 to 79). Oerlikon’s
Health, Safety and Environmental (HSE) Sustainability Policy was launched in 2016. In January2022, we formally integrated our other sustainability efforts and HSE into a new policy: theSustainability & HSE Policy. Oerlikon’s intent,­
ambitions, commitments, actions, roles and­responsibilities and governance concerning­­sustainability, health, safety and environment are
defined in the policy, whose key messages appear
on page 73 of this report and at www.oerlikon.
com/en/sustainability/our-policies.

HAZARD IDENTIFICATION, RISKASSESSMENT AND INCIDENTINVESTIGATIONGRI 403-2; SASB RT-IG-440a.1
Our H&S management system governs Group-wide
H&S practices as outlined in a 21-chapter documentthat covers a spectrum of H&S, risk management
and wellness topics (see box below). Many of these
topics are further detailed in Group guidelines andsupplemented by division, business unit and business line standards and procedures regarding HSE
risks or processes.
We require all sites to conduct a legal HSE compliance check annually, and these undergo third­party
reviews every other year. Our system ­maintainsKEY HEALTH AND MANAGEMENT SYSTEM TOPICS
1.	Visible Safety Leadership8.	Hazardous Work Activities

15.	Management Review & Planning

2.	Hazard Identification, Risk

9.	Performance Monitoring

16.	Design Safety

10.	Contractor Safety Management

17.	Document & Records Management

11.	First Aid, Emergency Preparedness &18.	Industrial Hygiene & Monitoring

Assessment & Mitigating Actions
3.	Legal Obligations
4.	Introduction & Training

Response

19.	Health and Wellness Issues

5.	Good Housekeeping

12.	Learn & Share

20.	Occupational Rehabilitation

6.	Roles, Responsibilities &13.	Management of Process Change

21.	Audit & Compliance

Accountability
7.	Safe Working Procedures

14.	Accident, Near-Miss & Unsafe Situation
Reporting, Investigation & Corrective Action

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SUSTAINABILITY REPORT 2023
04 Our Social Commitment

meticulous records that track incidents of andresponses to work-related injuries and significant
near misses, all of which must be reported to top
management and Group HSE within 24 hours. Thisapproach facilitates precision in response andprevention.
Stressors Identification and Exposure
Monitoring
All our divisions and sites must have processes inplace to identify the work environmental stressorsthat are to be monitored (see box below). Each site
is required to undertake environmental stressor(hazard) identification and determine whether
monitoring is needed, and if so, what type of­­monitoring is appropriate.
Approach to Hazardous Substances
In our coating R&D, equipment and services, a
global process directive determines the requirement for the ordering, use and disposal of
dangerous products. Dangerous products are­­substances, preparations, mixtures and solutions
that have dangerous characteristics for people(e.g. poisonous, irritating, etc.) and for the environment (e.g. inflammable, environmentally harmful,etc.) and may therefore involve specific risks. The
directive clearly outlines the approach and preventive steps taken in handling such substances:• B efore a (dangerous) product can be used at aworkplace for the first time, either for tests at thelaboratory level or in the production process,advice on health, safety and the environment
must be provided by the local HSE Manager.
• A list of banned and restricted chemical substances that have a major negative influence on
health and the environment has been established.

STRESSORS MONITORED INCLUDE:• Toxic/hazardous
material exposures• Atmosphericcontamination• Noise• Air quality• Ventilation• Vibration• Temperature• Flammable gases• Fire• Radiation• Ergonomics• Lighting/­
illumination

When requesting these banned and restrictedchemical substances, the reason why no otherchemical product can be used must be­submitted. For every product used, a checkagainst the banned and restricted list has to be
performed. In the event that a banned andrestricted product is used, an alternative must besought, and the banned and restricted productreplaced. This search has to be documented.
• For some chemicals that have been reviewed
and deemed acceptable, a global exception
exists, and the sites do not have to search foralternatives.
• In handling waste, there must be a map clearly
indicating storage areas, which are posted at
multiple locations on site so that no one has
doubts about where to put which kind ofwaste. All employees have to be trained in thehandling of waste, including where to put
which kind of waste, separate and different
waste streams, the dangers of the waste, etc.
If the waste is treated internally after usage, forinstance by evaporation, the safety professional has to make sure the facility in question has
the necessary permits to carry out this activity.
The remaining waste after internal treatment
and the waste, in general, has to be collected
and treated by a certified contractor.
Approach to Noise and Air Quality
Noise and air quality are potential stressors. If they
are identified at the workplace, preventive measures will be implemented, such as noise reduction
initiatives or providing ear protection.
In terms of air quality, specific dust measurement
programs in collaboration with national authorities
for the coating process may take place in addition
to locally required workplace investigations.
­Technical measures to reduce dust and rules for
personal protective equipment are updated­regularly where necessary. This applies equally at
customer facilities using Oerlikon’s equipment andin our own coating centers.
HSE Policy and Incident Management
Oerlikon’s HSE Committee establishes the company’s HSE guidelines and processes, drives theimplementation of related programs and monitors
their performance. The team, led by the Head ofGroup Operational Sustainability & HSE, works acrossall sites and businesses. Standardization of HSEpractices across the Group is facilitated by an online

SUSTAINABILITY REPORT 2023
04 Our Social Commitment

tool used to track and assign tasks to sites and tofollow up on their implementation via an HSE-­
balanced scorecard. For each site, Oerlikon tracks
initiatives on training, safety leadership and risk management, and conducts HSE compliance checks.
We regard every Oerlikon employee as being
responsible for understanding our H&S policies
and making them a reality in practice within our
workplaces. Our managers, in particular, have aduty to lead in this regard, and we provide support
and oversight via an H&S team of specialists who
facilitate Group-wide implementation and moni­
toring of all related topics.

WORK-RELATED INJURIESGRI 403-9; SASB RT-IG 320a.1
Oerlikon’s key performance indicator for safety is ourrate of recordable work-related injuries, referred tointernally as the total accident frequency rate (TAFR),
which is based on 200 000 hours worked by
employees (including temporary workers but­excluding independent contractors). We find it to bea good indicator because it encompasses accidents
and medical treatments that did and did not lead tolost time. H&S data in 2023 includes a few small
offices that provided the data.
We established a TAFR target for 2030 that was
published in the Sustainability Report 2020 anduses 2019 as our baseline year. In 2023, Oerlikon’s
TAFR, including acquisitions, was 0.72, which is areduction of 18% compared to 0.88 in the 2019baseline year. Excluding acquisitions, TAFR was
0.60, a reduction of 20% vs baseline. Compared tothe initial baseline set in 2016, there has been an
aggregate 45% reduction.

At Oerlikon, we consider TAFR to be comparablewith the total recordable incident rate (TRIR) since
the actual number of cases where illnesses did not
result from accidents is low.
The Group also tracks the number of calendar
days lost per each Lost Time Accident (LTA) per
200 000 hours worked. For 2023, this LTA severity
rate was 19.55, a 62% increase over 2022 (whenit was 12.04), attributed to three high-consequencework-related injuries and to the Riri acquisition,
where the rate has notably improved toward theend of the year.
Oerlikon covers a broader scope than just nearmiss incidents and takes into consideration unsafe
situations, which can be unsafe acts or ­conditions,and safety suggestions (referred to i­nternally as“near misses and unsafe situations” – NMUS). In
2023, our NMUS frequency rate increased by 60%
to 48.9 (2022: 30.6), which was one of the reasonsfor the 20% reduction in our TAFR (excluding acquisitions). In 2023, the fatality rate for work-related
fatalities remained at zero.
The number of contractors employed by Oerlikon
is relatively low compared with other industries. At
Oerlikon, we use contractors mainly for equipment
and facility maintenance and repair. Oerlikon tracks
neither the accident/incident rates nor the nearmiss frequency rates for contractors as we do notrecord their working hours. To our knowledge,
there were no work-related accidents or fatalities
recorded by any contractor in 2023.
Oerlikon continues to monitor these indicators­closely and is always seeking new opportunities tostrengthen our performance and improve the health,safety and well-being of every member of our team.

TAFR (12-month rolling)

1.4

1.02

0.87

0.88

0.68

0.751

0.75

0.722

2017

2018

2019

2020

2021

2022

2023

1.2
1.0
0.8
0.6
0.4
0.2
0.0

1
2

Excluding acquisitions, TAFR was 0.72.
In 2023, TAFR excluding acquisitions was 0.60.

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SUSTAINABILITY REPORT 2023
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We comply with the GRI 403 Occupational Healthand Safety 2018 standard by defining high-­
consequence work-related injuries in terms ofrecovery time instead of lost time to determine an
injury’s severity. Recovery time refers to the timeneeded for a worker to recover fully to pre-injury
health status. We currently do not measure­recovery time but intend to implement a process totrack it. In 2023, we had three such cases of work-­
related injuries (2022: two cases).

WORKER TRAINING ON OCCUPATIONALHEALTH AND SAFETY
GRI 403-5“No person is allowed to work for Oerlikon or tovisit an Oerlikon site without having received­adequate safety instruction and training.” This is
the first of our five golden health and safety rules,
which clearly states that new employees mustreceive adequate training before being approved towork at any of our sites.
Training covers site-specific rules, such as walkways
and speed limits, and workplace-specific rules, suchas personal protective equipment. Testing at theconclusion of training is recommended but not­mandatory. The trainer and trainee must sign a­written confirmation that training was conducted.
To reinforce safety in leadership, we piloted asafety leadership training module in 2022 covering
topics such as the Sustainability & HSE Policy, 5golden safety rules, H&S responsibilities, hazard
identifi­cation and risk assessment, behavior-based
safety, safety moments, NMUS and accident
investi­gation. In 2023, we rolled out the training
program, and to date over 530 managers, including the management teams of both divisions,have been trained.
As part of the H&S program, all employees at production sites received their annual safety training,
either as an initial training session or as a refresher.
The annual safety training covered topics such as
cutters, hand safety, fire safety, cranes, forklifts andergonomics. In 2023, 100% of the training was
executed as planned and documented.
Additionally, all operational employees and leaders
were tasked to ensure that they knew their contribution to and responsibility for health and safety.

Each site is required to understand and respect thelegal requirements for the individual’s H&S contribution and responsibilities, and that everyone
understood and accept that they are responsible
for their own safety and well-being. To formalize
this process, each individual’s responsibilities must
be defined and documented, ideally in their job
descriptions.
Since 2015 – except for 2020 due to ­pandemic safety concerns – Oerlikon has hosted an annual global
HSE Day designed to address areas of existing or
potential concern. HSE Day themes have included
risk/hazard identification, ergonomics, safe driving,
fit4life (which encouraged physical activity, healthyeating and getting sufficient sleep), stress management, avoiding toxic substances, well-being andresilience and, in response to COVID-19, ­strategies
for preventing infection and coping with the mental
health impact of the pandemic.
For 2023, employees worldwide participated in
the HSE Day activities and training related to thetheme Ownership for Safety. The gist of the theme
was to reinforce the mindset that each and­everyone needs to take personal responsibility foroccupational health and safety. Beginning with aconference session on accountability that waschaired by the country presidents or site generalmanagers, employees were then invited to openly
discuss the topic. Further workshops on specifictopics were organized for smaller groups, and a
Jeopardy-style quiz provided the interactive funelement to finding the right H&S questions to thegiven answers.
To further highlight the importance of safety atwork, in 2023, a new poster with our five golden
health and safety rules, available in 28 languages,
was prominently placed throughout our sites
worldwide. Moreover, a “H&S welcome card” – aninitiative that began in our Remscheid site – wasadopted by other Oerlikon sites globally, serving
as a reminder to employees coming back fromthe year-end and New Year’s holidays to be vigilant and heed health and safety measures.

OCCUPATIONAL HEALTH SERVICESGRI 403-3
We organize occupational health services atlegal entity or site level in accordance with local

SUSTAINABILITY REPORT 2023
04 Our Social Commitmentr­egulations. Oerlikon appoints a local, usually
external (third-party) doctor to provide services.
The majority of these doctors work off-site, but anumber of doctors have a more permanent­presence and provide in-house services at a few of
our larger facilities. Appointed doctors regularly
attend H&S committee meetings organized by
local management to evaluate problems, issues
and potential areas of improvement.
Oerlikon’s H&S management system requires thatall sites establish and maintain an industrial hygiene
program that, with full medical input, anticipatesand monitors workplace environmental stressorsthat may cause illness or disease. This allows us to
implement mitigation actions, where needed. At
sites where employees work with permitted
hazardous substances or face air quality issues, weregularly monitor the health status of the employees
by means of preventive medical checkups.
We respect the confidentiality of all employee
health- and safety-related information in accordance with local labor laws and data privacy
regulations. The Group’s Data Protection Officer
has established stringent internal data privacy
procedures and regularly provides information andtraining on the topic.

WORKER PARTICIPATION, CONSULTATIONAND COMMUNICATION ON OCCUPATIONALHEALTH AND SAFETY
GRI 403-4
Oerlikon operates 207 sites in 38 countries, eachgoverned by local labor and labor-related laws andregulations regarding worker participation, consultation and communication. Workers’ participationand consultation are set up in compliance withregulations that differ by locality.

Oerlikon’s H&S management system requires concerned personnel to be involved in the risk assessment process and in investigations of accidents
and incidents, and to share lessons learned.
To enhance awareness and communication, safety
moments, which are brief discussions on a safetyrelated topic, are held at the beginning of a work
shift to remind employees about safe practices andissues related to safety. This practice extends toboth Oerlikon and customer sites that operate thesystems.

PROMOTION OF WORKER HEALTHGRI 403-6
In the majority of the countries where Oerlikon
operates, public health systems are in place tomeet Oerlikon employees’ need for non-­occupational medical and healthcare services.
Safety measures that Oerlikon initially implemented in
response to COVID-19 have now been integrated into
our overall approach to workplace health and protecting employees from infectious diseases. These
strategies apply equally to emerging health risks andto long-standing seasonal viruses. We continue tooffer free flu vaccinations worldwide, and althoughparticipation is voluntary, we encourage employees
to protect themselves, their coworkers and their­families by getting the flu vaccination.

WORKERS COVERED BY AN­OCCUPATIONAL HEALTH AND SAFETY
MANAGEMENT SYSTEM
GRI 403-8

Almost all sites have H&S committees to address
health and safety topics. Due to the different local
regulations, there are differences in the details of
how participation, consultation and communication
are done. Generally, committee members include
workers’ representatives, a representative from management, an H&S officer and a company doctor.

Oerlikon’s safety rules also apply to indirect
employees, such as short-term contractors or
technicians servicing machinery. Visitors must
review and sign an acknowledgement of the­safety instructions before being admitted to a site.
This is consistent with our practice of making nohealth and safety management distinction
between direct, permanent staff or temporary
members of our workforce who are employed byoutside agencies but whose work is controlled by
Oerlikon (within legal limits).

Meetings take place regularly several times per
year (in many countries on a quarterly basis).

Our accident rates cover both types of employees
in the same way. Temporary workers accounted for

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SUSTAINABILITY REPORT 2023
04 Our Social Commitment

1% of work-related injuries in 2022 (2022: 13%).
Those figures correspond to the proportion of theirrepresentation within our total workforce in each of
those years.
Likewise, we apply the same safety standards forcontractors we hire to work at our premises or on
customer sites and make the same commitment totheir health and safety.

PREVENTION AND MITIGATION OF
OCCUPATIONAL HEALTH AND SAFETY
IMPACT DIRECTLY LINKED BY
BUSINESS RELATIONSHIPSGRI 403-7

standards from the product design phase throughproduction, assembly, packaging, labeling, training, delivery and on-site customer service.
We also use a certified quality management system
to ensure quality standards. If potential dangers
cannot be completely avoided when using Oerlikon
products, Oerlikon clearly indicates this with healthand safety warnings. When transporting products
or materials, we adhere strictly to international andlocal trade, export, packaging, transportation,labeling and declaration paper regulations.
Oerlikon products and services can be clusteredinto three business models that cover 100% of
Oerlikon’s sales:

Oerlikon adopts the highest standards in ensuring
the safety of our products and services within ouroperations and for customers. We apply these• Machinery and equipment.
• Materials.
• Coating as a service/components/AM.

Oerlikon Approach to Product Safety
Oerlikon products and services are clustered into three business models:
1) Machinery and equipment 2) Materials and 3) Coating as a service/components/AM.
They cover 100% of Group sales.

Machinery &Equipment

Polymer Processing
Solutions

Coating as a Service/
Components/AM

Materials

Surface
SolutionsSurface
SolutionsSurface
Solutions

Ensure compliance with key global regulations: REACH, RoHS, etc.
Directive on Machinery Safety:
1. Transport
2. Assemble/install/test
3. Commissioning
4. Operation/use
5. Decommissioning
6. Disassembly
7. Disposal

Regulatory compliance:
1. Safety data sheet software updated forregulations
2. Product development/training

Regulatory compliance:
1. Coating development & testing
2. Industry standard regulations andaccreditations

Stages:1. Design/customization/risk
2. Support and training
3. Final checks
4. User manuals and safety data sheets
5. Ongoing support

Stages:1. Quality control (test) and packaging
2. Safe transportation
3. Safety data sheets
4. Customer support/training

Stages:1. Quality control (test) and packaging
2. Safe transportation
3. Safety data sheets to customer
4. Customer support/training

Machinery/equipment manufactured by Oerlikon
and operated by customers

Materials (e.g. powder metals) manufactured
and blended by Oerlikon and sold to customers
as consumables

Customer manufacturers components and sends
them to Oerlikon. Oerlikon coats them to specification and sends them back to the customers

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04 Our Social Commitment

For all three categories, Oerlikon has in place­comprehensive safety measures, including safety
directives, safety data sheets (SDS) and productmanuals. Safety is defined and ensured from thevery beginning – from the design stage all the way
to ongoing customer support after delivery of theequipment/product. See the table on page 60 for
further details. In addition, all Oerlikon sites fullycomply with international and local safety ­standards(see list on page 63).
Equipment
Oerlikon’s equipment is basically built according toEuropean standards and regulations and thus
meets one of the highest safety standards in theworld and, at the same time, fully adheres to theregulations of the countries in which the products
are sold, delivered and used.
Risk Assessment and Precautionary
Principle
All equipment undergoes a risk analysis during
development as well as during modification over the
lifetime of the equipment. The risk assessment iscomprehensive, covering technical, operational,
health and environmental risks, and addresses all
risks and mitigation actions needed. The effectiveness of these actions is then tracked during the
project. A final check of the complete risk mitigation
is a prerequisite for the final sign-off of the equipment before the product is placed on the market.

Directives on Machine Safety (MS) are in place forboth Polymer Processing Solutions and ­Surface
Solutions, following the ISO 12100:100 Safety ofmachinery – General principles for design as theauthoritative specification, without being limited
to them. The directives are guided by a closedloop concept (see chart below) that considers legal
requirements, as well as audits at both unit leveland division level.
This internal directive clearly defines the concept,
structure and roles of responsibility for ensuring
product safety. Safety is one of our essential principles, and the directive informs and enforces ourcommitment to protecting the safety of persons
handling our products at Oerlikon or customer
sites worldwide.
At the division and unit levels in the Polymer­Processing Solutions Division, there are also ­Safety
Committees being set up with clearly defined­processes and actions to monitor machinery safetyissues and determine appropriate escalation steps
when required.
In addition, risks originating from the design or
production process are assessed and taken as
the basis for the equipment risk assessment. For
equipment from acquired companies, the risk
assessment is performed during the due diligenceprocess or after the acquisition.

Safety Concept for Machine Safety at Polymer Processing Solutions

Coordinator at Division
Audit at division level

Company Management OPP• Safety Committee

Directive on MS
Organization delegation

Unit• MS Organization• Norms & Standards• Safety Committee
Audit at unit level

Basis: Legal Requirements

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Ensuring Safety from Innovation to Delivery
Safety concepts are created for each system andare applied at each phase of the innovation p­ rocessfrom feasibility and verification through equipment
and process safety. For the European Economic
Area (EEA), CE certification is the final step. Checklists for starting up safety-relevant components aremaintained for each system, as are manuals that
include SDS. Available in all European languages
and more than 10 non-European languages, thesheets highlight residual risks and aspects on
which the operator needs training. These checklists, manuals and SDS are delivered with theequipment to customers.
If incidents are reported, we take the following
actions, if required:• Perform accident analysis with the customer.
• Adapt safety concept.
• Send out technical information/safety information to all customers worldwide for prevention.
The incident will become a product sustainment
project, which will send the technical and safety
information to all customers worldwide to preventand track safety or other issues if they occur.
Moreover, equipment maturity program projects
are executed for older versions of machines and formachines from acquired companies if our required
levels of safety standards are not implemented.
After delivery of the equipment, we continue tomonitor the products for systematic recording
and processing of potential risks and detected
accidents. Reports on near-miss incidents andcustomer product observations provide us withfeedback that results in mitigation actions orflows back into product development for design
improvements.
Customers from both Surface Solutions and­Polymer Processing Solutions receive training via
extensive documentation, including on residual risk
(using an operational manual). We organize regularinternal safety events and training on machinery
safety. All employees in engineering are trained by
the safety department during onboarding andcomplete regular refresher courses.

Materials
SASB RT-IG-440a.1
In our materials business, we regularly check onand enforce our products’ full compliance withall relevant regulations, including the EU’s regulation on Registration, Evaluation, Authorisation andRestriction of Chemicals (REACH) and the EU’s
Restriction of Hazardous Substances (RoHS) regulation. Products that are not compliant are replaced
before introduction on the market.
For all our materials sold, we provide customers
with SDS prepared in strict compliance with thelegal requirements of the applicable country forthe safe use, handling, storage and disposal ofthese materials. These sheets are published in all
the ­relevant local languages and are available fordownload online.
The SDS provide information including:• The national/local emergency telephone number,including 24-hour response service number.
• Composition/information on ingredients.
• First-aid measures.
• Firefighting measures.
• Accidental release measures.
• Exposure controls and personal protection.
• Toxicological information.
• Ecological information.
• Disposal considerations.
• Transport information.
The SDS are generated with software that ­complies
with regulatory standards and is ­updated three tofour times per year to include any new global, regional or local regulatory classifications and requirements. Our team of materials experts’ networkwith industry groups and consultants to exchange
information and keep up to date on ­regulatory andtechnological changes in chemicals and materials.
Coatings
All Oerlikon’s production and coating centers worldwide adhere to strict H&S guidelines p­ rovided by thecompany. It addresses not only health issues, suchas ergonomics, but also safety guidelines on how towork with machinery, ­materials, waste and ensure
protection, such as safety glasses.

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The safety and prevention procedures and processes
for equipment apply to the development of coatings(both thin film and thermal spray) and to the coatingprocesses – both at customer facilities using Oerlikonequipment and in our own coating centers:• Risk analysis is performed before the start of adevelopment project.
• There are clear specifications regarding thebasic materials and substances of the coating,which are subjected to regular supplier audits.
• The layer specifications are determined toensure the absence of hazardous substances
and/or are compliant with limit thresholds
defined by standards, such as REACH, RoHS
or the minimization principle applied at Oerlikon.
• In the event that the coatings or coating­processes generate air particles, specific dust
measurement programs in collaboration withnational authorities for coating processes may
take place in addition to locally required workplace investigations.

Contractor Safety
Contractors working at an Oerlikon site must workin a safe way. In 2022, we began the global implementation of a guideline that sets high-level
requirements for contractor safety and outlines theminimum requirements for contractor safety
management that each site must apply when­­outsourcing jobs and services to contractors. We
have established standards for contractors in­construction works, facility management, machine
installation, ­maintenance and repair, building­maintenance work, industrial services (e.g. transport and packaging) as well as building and commissioning work.
These guidelines apply to direct contractors and tocontractors appointed by the landlord for leased sites.
The contractor selection process must be completed
in close cooperation with the local procurement
department, and the contractor’s safety record, as
well as self-information and its health and safety­management plans and references, must be provided
and considered before the contract is granted.

All employees are trained to comply with the rules
for the use of personal protective equipment, whererequired, and these rules are regularly updated.

OERLIKON COMPLIES FULLY WITH INTERNATIONALAND LOCAL SAFETY STANDARDS, INCLUDING:• CE conformity for all equipment, including ISO
standards (personal and equipment safety);
the CE marking (an acronym for the French“Conformité Européenne” certifies that a producthas met EU health, safety and environmental
requirements, which ensure consumer safety)• Machinery Directive (2006/42/EC)• Machinery Regulation (2023/1230/EU)• Low Voltage Directive (LVD) (2014/35/EU)• Electromagnetic Compatibility (EMC)
Directive (2014/30/EU)• Radio Equipment Directive (RED) (2014/53/EU)• Registration, Evaluation, Authorisation andRestriction of Chemicals (REACH)• Restriction of Hazardous Substances (RoHS 2)
Directive (2014/65/EU)• Germany: Technical Rules for Hazardous
Substances (TRGS)• Pressure Equipment Directive (PED) (2014/68/EU)• ATEX Directive (2014/34/EU)• USA: Underwriters Laboratories (UL)(as per request)

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SUSTAINABILITY REPORT 2023
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Responsible Sourcing & Human Rights
GRI 3-3

SUPPLIER CHAIN& SUPPLIER SOCIAL ASSESSMENTGRI 2-6; GRI 414-1,2
Responsible sourcing at Oerlikon involves an­ongoing investment in strong supplier partnerships.
These are key to ensuring that we are able to maintain our research and production timetables,­sustain uninterrupted operations, deliver on our
obligations to customers and employees and­minimize environmental impact and risk.
Oerlikon’s supplier engagement model supports
these objectives in a manner consistent with our
guiding principles:
1. Sharing risk.
2.	Embracing best practices and the open
exchange of ideas.
3.	Conducting open and regular discussions
to foster unified expectations.
4. Streamlining processes to deliver excellence.
5.	Cultivating trust and mutual satisfaction inmeeting challenges together.
We select suppliers who share our values anddemonstrate an unwavering commitment to
upholding high ethical standards. Their operations
and processes must integrate seamlessly with ourown in terms of sustainability and conformity withworld-class standards of management.
Once identified, all prospective and new suppliers
are invited to go through our five-stage relationshipmanagement process. Oerlikon pursues relationships only with suppliers that complete this ­process
and agree to adhere to our Supplier Code of
Conduct.
The Oerlikon Supplier Code of Conduct, available
in English, German, Spanish, Italian, Chinese,
French, Hindi and Portuguese, is publicly available
for download on our corporate website and setsout our baseline requirements for supplier and subcontractor business ethics as well as legal and regulatory compliance, including:• H uman rights and social standards, such as
those concerning child labor, discrimination,
diversity and inclusion.

• Health, safety and environmental protection,such as process security and product safety.
• Appropriate business practices, such as
trade compliance and responsible sourcing ofminerals and metals.
• Governance, such as risk management andaccess to remedy.
In 2023, we published an updated Supplier Codeof Conduct in the eight languages. It formalizes
our commitment to include sustainability as an
essential part of our procurement strategy. The
updated Supplier Code of Conduct is available at:(www.oerlikon.com/en/sustainability/our-policies/)
and was rolled out successfully to the divisions in
2023.
At Oerlikon, responsible sourcing entails obtaining
the best value for the materials, goods and ­services
we purchase and maintaining the highest ethicalstandards in dealing with suppliers. Value includes
the total cost of ownership, price, quality, logistics
and service. This is essential in order to achievesustained cost reduction and innovative capabilities, while mitigating risks in our supply chain and­optimizing our net working capital.
A defined set of direct and indirect material (DM andIM) categories is managed by an integrated globalorganization. It employs a project-driven approachto maximize efficiency and continually reduce costs
in order to enhance Oerlikon’s profitability.
The Global Category Leader is responsible fordefining DM or IM category strategies and monitoring their implementation in close collaboration
with divisions and sites. The Key Procurement

Oerlikon’s Supplier
Code of Conduct

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04 Our Social Commitment

Manager, the Regional Head of Procurement andthe ­Category Buyers are responsible for executing
the relevant sourcing projects in line with the­category strategy. The Regional Procurement
Organization is defined in five main regions: theAmericas, Europe, Northeast Asia, Southeast Asia
and Japan. Hence, this footprint represents thegeographic locations of our suppliers. Due to­confidentiality constraints, we do not disclose theproportion of spending on local suppliers.
­Generally, 65% of our total spend is for directmaterials and 35% for indirect materials.
EcoVadis
In 2021, we began the process of elevating our
responsible sourcing to the next level by using
EcoVadis as our partner and framework forsustainability assessment.
EcoVadis provides companies with the means toassess the corporate sustainability performance of

their suppliers and other companies that havedecided to share their ratings within the EcoVadis
network.
By collecting data from suppliers and validatingthese data through independent means, we canobtain aggregated performance reports, as well as
individual scorecards with holistic risk profiles using
EcoVadis’ corporate social responsibility (CSR) risk
profiling IQ module.
Our collaboration with EcoVadis enables us to tap
into their resources to enhance the transparency of
our supply chain, ensure compliance with regard to
global regulations and laws and strengthen the
mitigation of potential risks.
As a first step, we completed the Sustainable Procurement Maturity Review with EcoVadis. The maturity review refers to the maturity of each of the defined
five roots: vision & goals, governance & resources,

EcoVadis Assessment Process

Rating & Performance
Monitoring

Corrective Action
Plans (CAP)CSR Risk Profiling
EcoVadis IQ Module

EcoVadis Spotlight
On-Site Audit
Corrective Action Plans

Supplier
Declaration

Supplier
Prioritization

General CSR
ClauseSpend

Codeof Conduct
5-stagemanagement

Commodity

Geography

Reassessment

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SUSTAINABILITY REPORT 2023
04 Our Social Commitment

policies, procedures & processes, capacity building& continuous improvement and reporting.
The review identified governance and resources
as “the most mature root” at Oerlikon and noted
our “strong program sponsorship and a robust
procurement program.” The areas of improvement identified from the review include developing
our sustainable procurement strategy and goals,­cascading sustainability as a mandatory requirement within the global procurement organization and setting internal KPIs/targets, as well as­formalizing and monitoring the progress.
This result reflects the fact that our procurement­strategy in past years has been focused on ensuring
the quality and reliability of suppliers and their compliance with international and local laws and regulations.
With EcoVadis, we are essentially expanding our procurement strategy to make sustainable procurement
another key criterion in managing our supply chain.
In 2022, we took the next step in our sustainability
journey, mapping out our goals in our Sustainable
Procurement Roadmap from 2022 to 2030 in orderto provide us with a plan on how we want to evolve
our sustainable procurement over the next few
years. The roadmap covers our intentions to­develop the program and hone leadership throughtraining and engagement and it sets improvement
goals and individual KPIs.
As part of our expanded procurement strategy, allOerlikon commodity managers must complete thesustainable procurement training via an EcoVadis
webinar, and the program is to be cascaded within
the divisions. In addition, the procurement team istrained on the differences between EcoVadis IQ (riskmapping) and EcoVadis rating (performance monitoring and corrective action plans).
In 2023, we completed the EcoVadis rating ­process
for rated suppliers, covering 30% of mapped
spending (key and strategic suppliers), an­improvement from the 20% in 2022. Our goal is tocover 100% of our mapped spend by 2030.
­Furthermore, 66% of our suppliers improved theiroverall EcoVadis score in 2023.
The EcoVadis tool also covers corrective actions,such as additional due diligence, contract clauses
and monitoring, as well as on-site audits for­suppliers with severe risks or specific needs.

Due Diligence
Besides EcoVadis, 100% of our global procurement
colleagues are trained on Oerlikon’s Supplier Codeof Conduct, and they strictly apply these standards
in our assessment and selection of new suppliers. Allof our suppliers must agree to Oerlikon’s Supplier
Code of Conduct and to the general terms and­conditions. Further training on the Supplier Code of
Conduct is provided on an ongoing basis to ensurethat the team stays current.
Following the acquisition of Riri, its procurement
team was successfully integrated into the Oerlikonorganization. The spend and KPI analyses were
integrated in line with our globally standardized­­process, including commodity reviews, individual due
diligence and risk mitigation procedures.
To strengthen sustainable procurement globally, we
appointed regional Sustainability Champions in 2023.
They received comprehensive training and acted as
single points of contact during the implementation of
our individual sustainability campaigns.
In 2023, we audited 172 of our suppliers to ensurethat our Supplier Code of Conduct is respected.
This represented a decrease from 2022 (216­suppliers audited), which was primarily attributable
to the restructuring of the polymer processing­business and cost ­containment program.
The response to a detected violation depends on
the stage of the process. If a violation is identified
during the onboarding process for new suppliers,
the subject area will be addressed, and the process
is promptly paused.
In the case of gaps identified during sustainability
assessments conducted by EcoVadis, complete
transparency is provided regarding corrective
actions. Suppliers are given specific deadlines toaddress these gaps, and the progress is monitored by external ESG (Environmental, Social andGovernance) experts.
During supplier audits, potential gaps are highlighted, and the respective suppliers are required
to close these gaps accordingly. In a worst-casescenario, specific escalation processes, such as acompliance hotline, may be utilized. If the ­identified
issues persist following a thorough investigation,a phase-out process for the ­suppliers will be
initiated.

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04 Our Social Commitment

RISK AND MEASURES UNDERTAKEN
We address the main risks and required measures
regarding suppliers by way of our collaboration
with EcoVadis. The EcoVadis methodology covers
21 ESG criteria (see box below).
Similarly, the 21 ESG criteria in the EcoVadis­methodology provide us with the framework foraddressing anti-corruption risks and measures,
including ethics, anti-competitive practices andresponsible information management.

Environmental
IssuesSocial Issues

Governance Issues

Climate change andcarbon emissions

Customer satisfaction Board composition

Air and waterpollution

Data protection andprivacy

Audit committee
structure

Biodiversity

Gender and diversity

Bribery andcorruption

Deforestation

Employeeengagement

Executivecompensation

Energy efficiency

Community relations Lobbying

Waste management

Human rights

Political contributions

Water scarcity

Labor standards

Whistleblower
schemes

DUE DILIGENCE AND TRANSPARENCY
ORDINANCE (DDTRO)
Under the DDTrO, companies or groups that importand process volumes of minerals and metals, suchas tin, tantalum, tungsten or gold, in excess ofcertain thresholds are subject to due diligence andreporting requirements. Companies and groups
are exempt if the minerals and metals do not comefrom conflict-affected or high-risk areas.
Oerlikon monitors, reviews and documents its­conflict metal and mineral activities on a regularbasis. As a result of these regular monitoring­activities, including activities of companies
acquired, specifically Riri in 2023, Oerlikon has
concluded that it is exempt from the due diligenceand reporting obligations under Art. 964j et seqq.
of the Swiss Code of Obligations (CO).

CONFLICT MINERALS & THE MANAGEMENTOF RISKS ASSOCIATED WITH THE USE OF
CRITICAL MATERIALSSASB RT-IG-440a.1
The EU Conflict Minerals Regulation (2017/821),
which went into effect in January 2021, regulates
trade in minerals – in particular, tin, tantalum, t­ ungsten
and gold (3TG) – that have been ­extracted frommines in politically unstable or ­conflict-affected areas.
The regulation targets the human rights practices ofarmed movements that finance their campaigns andtheir weapons purchases by r­unning mining­operations that rely on forced and/or child labor.
Under the EU Conflict Minerals Regulation, EU
importers of 3TG minerals must comply with andreport on their supply chain due diligence­obligations if they import minerals that originate
from conflict-affected areas.
The EU regulation was inspired in part by the
Dodd-Frank Act, a US law regarding transparency
and accountability that took effect in 2010. However, it takes a more comprehensive view of conflictmining and trade. While the US law was specific tominerals sourced from the Democratic Republic ofCongo and adjoining countries, the EU rule targets
all countries exporting 3TG minerals to the EU anddoes not contain language that limits its impact tospecific locations. This extends its impact beyond
current conflict areas to countries or regions that
may become conflict-affected in the future.
At Oerlikon, we support this regulation and have infact taken steps that anticipated its concerns. We
have instituted a Conflict Mineral policy and due­diligence measures across our supply chain in
accordance with voluntary efforts, such as thoseadvocated by the OECD in its Due Diligence­Guidance for Responsible Supply Chains of­Minerals from Conflict-Affected and High-Risk
Areas, as well as US legislation.
We are aware that some of Oerlikon’s suppliers ofmaterials have a history of acquiring conflict minerals
in trade from multiple sources worldwide. In keepingwith our commitment to corporate responsibility andupholding human rights across all operations, we are
seeking to ensure that our suppliers source 3TG
minerals exclusively from mines in conflict-free areas.

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We expect our suppliers to establish and implement policies and due diligence measures thatassure they supply us with conflict-free 3TG­products and components in compliance with the
Responsible Business Alliance (RBA) Code of­Conduct and our Responsible Sourcing Policy.
In support of our policy and the OECD five-stepframework, we will:• Exercise due diligence with relevant suppliersconsistent with the OECD Due Diligence
Guidance for Responsible Supply Chains ofMinerals from Conflict-Affected and High-Risk
Areas and following the five-step frameworkand encourage our suppliers to do the samewith their own suppliers.
• Expect our suppliers to cooperate in providing
due diligence information to confirm that the
3TG minerals they are providing are conflict-free.
• Collaborate with suppliers and others on
industry-wide solutions to ensure that products
containing 3TG minerals are conflict-free.
• Consistently implement this policy and makereports available, upon request, to relevant
stakeholders.

We are encouraged by the EU’s regulation on thesourcing of 3TG minerals as a mechanism for­barring illicit trade and boosting supply chain transparency. We take pride in having enacted our own
human rights measures before being required to
do so by law, and we can assure our ­stakeholders
and investors that we will continue to integrate
ESG factors across our supply chain.
Furthermore, Oerlikon is a member of the global
Responsible Minerals Initiative (RMI), which is one of
the most utilized and respected resources for­companies from a range of industries addressing
responsible mineral sourcing issues in their supply
chain (see below for details on the RMI program).
Moreover, the described downstream and upstream
assessment program of the RMI is designed toprovide a robust validation for customer requirements across mineral and metal value chains aswell as to meet the requirements of the EU­Responsible Minerals Regulation (EU Regulation
2017/821) for EU importers of 3TG that do notmeet the definition of a smelter or refiner.

RMI PROGRAM
The RMI identifies smelters and refiners that produce responsibly sourced­materials. To confirm this status, they use specially trained third-party auditors to esponsible Minerals
R
Assurance Process(RMAP)

independently verify that these smelters and refiners have systems in place toresponsibly source minerals in conformance with the RMAP. A list of smelters andrefiners that meet the requirements of the audit standards is published online. The
audit standards are developed according to global standards including the OECD
Due Diligence Guidance for Responsible Supply Chains of Minerals from ConflictAffected and High-Risk Areas and the US Dodd-Frank Wall Street Reform andConsumer Protection Act.

 onflict Minerals
C
Reporting Template(CMRT)The RMI offers a free, standardized reporting template that facilitates the transfer of
information through the supply chain regarding mineral, country of origin and­smelters and refiners being utilized. The template also facilitates the identification of
new smelters and refiners to potentially undergo an audit via the RMAP.

Due Diligence
Guidance

The RMI’s due diligence working group focuses on producing white papers and otheranalyses and guidance for companies about best practices and various standards
that address responsibly sourced minerals in the supply chain and reporting.

Stakeholder
Engagement

The RMI regularly participates in public forums to provide information about the
RMI and RMAP and share tools, best practices and mechanisms to identify andmitigate risks in the mineral supply chain. The RMI engages a variety of non-governmental organizations, responsible investor groups, governments and multilateral
institutions to discuss emerging issues, best practices and work on addressing
shared challenges. The RMI also participates in a range of multi-stakeholder groups
and hosts an annual workshop to provide a forum for dialogue with stakeholders.

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SUSTAINABILITY REPORT 2023
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SUSTAINABILITY REPORT 2023
05 Our Governance Commitment

05

Our GovernanceCommitment

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Our Governance
GRI 3-3

SDGS IN FOCUS:

GOVERNANCESTRUCTURE AND BODY
GRI 2-9

MANAGEMENT APPROACH
GRI 2-9,10,11,12,13,16,17,18

As early adopters of sustainable innovation prac- We are meticulous in our approach to governance.
tices, we have always held the view that our solu- Whether we are monitoring and quantifying
tions should minimize the environmental footprints ­compliance, managing risk or inviting and engaging
of both our customers’ businesses and our own in public discourse, our goal is to foster a company
operations. This philosophy guides our decision-­ and a credo in support of the principle that innovamaking as it pertains to being an optimal global tion goes hand in hand with maintaining customers’
and society’s confidence and trust.
­citizen and delivering sustained shareholder value.
Oerlikon is supportive of worldwide government
initiatives advocating climate protection. Stricter
standards of air and water quality have an impact
on our business and that of our customers. At thesame time, we welcome the opportunity to employ
those regulatory restrictions as parameters for theongoing redefinition of sustainable innovation,
which is at the heart of Oerlikon’s work. Likewise,
we view corporate governance guidelines (e.g. theSwiss Code of Best Practice for Corporate Governance issued by economiesuisse) as fully alignedwith our own principles and described in detail in
the Corporate Governance Report in Oerlikon's
Annual Report and published on www.oerlikon.
com. The company’s Articles of Association can beconsidered as Oerlikon’s “constitution”, outlining
the rules and regulations that stipulate the­company’s affairs; we have amplified these with thecompany’s Organizational Governance Rules andthe Oerlikon Code of Conduct (CoC), which clearly
defines the ethical and legal framework of all ourbusiness activities.

Under our Executive Chairman’s active direction(for an explanation of Oerlikon’s Executive Chair
Model, see the Corporate Governance Report in
Oerlikon’s Annual Report and on Oerlikon’s websitewww.­oerlikon.com) and supported by our Board of
Directors and its committees. Oerlikon holds itself tothe highest standards of economic, environmental
and societal performance, as well as compliancewith laws, regulations and corporate policies thatgovern our operations and practices worldwide.
Furthermore, sustainability is endorsed and overseen by the Board of Directors. The Board’s
agenda covers sustainability topics throughout theyear and dedicates significant time for the purposeof establishing the overall guidance for the OerlikonGroup’s sustainability strategy. In this process,the Board will also delegate specific sustainability
topics to its committees.
The Board has mandated a dedicated Chief
Sustainability Officer (CSO), who is a member of

SUSTAINABILITY REPORT 2023
05 Our Governance Commitment

the Executive Committee (EC) and reports to the
Executive Chairman, to monitor, align and execute the sustainability strategy. Led by the CSO,
the Sustainability Management Team (SMT) works
closely with the divisions and Group functions inexecuting the sustainability strategy, rolling out
programs and action plans and increasing­dialogue and awareness with stakeholders. The
SMT consists of members who represent key
sustainability areas – operational sustainability
and environment (environment), health and safety(social), legal (governance and compliance), HR(social), communications and investor relations.
The chart below provides an overview of how
sustainability is embedded in Oerlikon’s Boardand leadership structure.
Oerlikon is mindful of the interdependence of economic, social and environmental interests andseeks to convert this dynamic into a strength thatserves its operational and societal objectives. Thisis a key component of ensuring that we consistently deliver long-term value creation in our daily
business activities to the benefit of all stakeholders.
Sustainability is thus an integral part of our ­corporate
culture and behavior in business as anchored in

71

Oerlikon’s Code of Conduct, the Success Model
and Oerlikon’s Sustainability, HSE Policy as published on www.oerlikon.com.
Each employee is responsible, on an individuallevel, for upholding the sustainability and HSE­principles, and line management is responsible for
ensuring alignment in business activities and­processes within their area of responsibility.
To ensure a close link to the operational part of thebusiness and full commitment from management,
Oerlikon’s sustainability organizational frameworkencompasses members of the strategic, operative and business levels. This framework reflects
Oerlikon’s management model and enables the­company to draw on the full complement of ­relevant
resources, experience and knowledge.
Board members are selected and nominated in afair and non-discriminating way toward minorities.
Oerlikon strives to have a well-diversified Board,considering skills, experiences, geographic reach,tenure and gender. The Board refreshment process
is described in more detail in the Corporate
Governance Report in Oerlikon’s Annual Report andpublished on www.oerlikon.com.

GOVERNANCE: SUSTAINABILITY EMBEDDED ACROSS OERLIKONGRI 2-9,10,11,12

Responsibility &Oversight

Board of Directors
Mandates Chief Sustainability Officer to monitor, align and execute the sustainability strategy; provides
strategic guidance on the sustainability program; approves the sustainability report.

Audit & Finance Committee
Governance Committee
Monitors financial reporting, risk
Assists BoD in matters relating tomanagement and internal/external
corporate governance
audit

Human Resources Committee
Aligns compensation & incentive
schemes with ESG strategy;­performance assessment and­talent development

Executive Committee
Appoints a dedicated Chief Sustainability Officer to establish, manage and monitor the sustainability
strategy and its implementation

Sustainability Management Team
Executes sustainability strategy and coordinates action plans working with subject matter experts fromthe divisions, business units and functions
SupplyChain

HR

Sales /
Marketing

Legal

Corp.
R&D/QA Operations
Comms.

HSE

Finance/IR

Proposesroad map/
Implementation

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The EC decides on the execution of the sustainability roadmap based on the proposal provided by
the SMT. It prioritizes the allocation of resourcesand defines the investment strategy to enable theexecution of the road map. It also ensures thatappropriate internal systems and controls are inplace to identify and manage economic, social,governance and environmental risks, and thatbusiness is conducted in a responsible manner.
The CSO works with the other members of the EC
to provide leadership and direction on the­sustainability strategy. He establishes, monitorsand manages the sustainability strategy and its
implementation across the Oerlikon Group basedon the road map, annual objectives and an action
program approved by the Board.
The CSO chairs and leads the SMT in managing
and coordinating all sustainability actions and­processes within Oerlikon, including the following:•	Working closely with the divisions and Groupfunctions in executing the sustainability strategy,
program and action plans.

•	
Developing the road map for the rollout of­sustainability initiatives and submitting proposals
to the EC for final approval, within the strategic
guidance defined by the Board.
•	Developing and increasing stakeholder awareness (both internal and external) of the need andbenefits of sustainable behavior and initiatingchanges and improvements.
•	
Identifying and assessing, together with line
management, the significant social, ethical, governance and environmental risks that might havean impact on Oerlikon’s long-term business or
impair Oerlikon’s objective to remain recognized
as a responsible leader in its industry.
•	Managing and coordinating stakeholder dialogues with regard to social, ethical and­environmental matters.
APPROVAL OF REPORT
In line with Art. 964a et seqq., the Sustainability
Report 2023 has been approved by the BoD
and will be subjected to advisory vote by shareholders at Oerlikon’s Annual General Meeting of
Shareholders.

SUSTAINABILITY GOVERNANCE FRAMEWORKGRI 2-9,10,11,12,14,18

Board of Directors• Sustainability is regularly part of the BoD agenda.
• Mandates Chief Sustainability Officer to monitor,align and execute the sustainability strategy.
• Provides strategic guidance on the sustainability program.
• Determines executive compensation and incentives.
• Approves sustainability reports.

Executive Committee• A member of the Executive Committee (EC) has been
appointed Chief Sustainability Officer and is responsible
for establishing, managing and monitoring the sustainability
strategy and implementation.
• Sustainability is regularly addressed as part of the EC’s
agenda.

Sustainability Management Team• Led by the Chief Sustainability Officer.
• Three focus areas: (1) operational/technical,(2) communications / IR and (3) metrics/KPIs.
• Executes sustainability strategy and coordinates actionplans, working with subject matter experts from thedivisions, business units and functions.

SUSTAINABILITY REPORT 2023
05 Our Governance Commitment

Sustainability & HSE Policy
Key Messages
Our Ambitions

Our Actions• Affirm our responsibility as a caretakerof the global ecosystem and a championof sustainability.
• Support the UN’s Sustainable Development
Goals (SDGs) – particularly in areas where
we can make the greatest impact.
• Minimize the environmental impact of ouroperations and products along the value chain.
• Become a company in which equal
treatment, fairness as well as diversity,
equity and inclusion (DEI) are
understood and practiced by all employees.
• Ensure Zero Harm to People. We believethat all injuries, occupational illnesses anddiseases can be avoided.
• Hold ourselves to the highest standardsof governance.

		Overall• Instill a relentless focus on environmental,social and governance (ESG) topics.
• Listen to, partner and work with stakeholders to
improve processes and uphold ESG standards.
• Implement actions, initiatives and measures toachieve our sustainability targets.
• Assess and manage sustainability and HSE risks.
		Environment• Minimize the environmental impact of ourservices and products over their entire life cycle.
• Leverage opportunities in our businesses andproducts to reduce emissions (including CO2),
consumption and waste.
• Execute plans in our operations to meet/ exceed
our environmental targets.
		SocialOur Commitments• Ecologically design and develop safe
products, services and solutions.
• Provide legally compliant and industrystandard safe products.
• Embrace the circular economy (e.g. repair,reuse, recycle) approach, responsible
procurement and manufacturing.
• Achieve operational excellence inemissions reduction.
• Implement industry-leading ethical andsocial policies, programs and actions.
• Consistently exercise strong corporate
governance.
• Promote ecological and health-conscious
behavior.
• Provide a safe and healthy working environment.

• Play a role in speaking out on social justice.
• Develop and run DEI programs and events
to raise awareness.
• Systematically apply and improve health andsafety processes and tools.
• Continually improve health and safety performance to meet or exceed legal and Oerlikon’s
HSE requirements.
• Provide relevant training to employees.
		Governance• Regularly perform governance and compliancereviews.
• Ensure fair, ethical and socially responsible
behavior along the supply chain.
• Assess new and existing governance/regulatory
requirements and risks.

Every employee has a role to play in contributing to the actions listed above.
Managers at all levels to visibly lead the way.
Sustainability and HSE are mandated by the BoD and EC.
For further details, please refer to the Sustainability& HSE Policy at sustainability.oerlikon.com

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SUSTAINABILITY REPORT 2023
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Ethics & Integrity
COMPLIANCE WITH LAWS AND
REGULATIONSPOLICY COMMITMENTS AND PROCESSESGRI 2-23,24,27
Oerlikon’s Group-wide procedures ensure ­compliancewith legal and regulatory statutes, as well as internal
standards, including the company’s Code of Conduct(CoC). This oversight encompasses training, communication and ­consulting activities designed to provide
the Group’s divisions and individuals with the information and resources necessary to fulfill their responsibilities and understand their roles in ensuring ethical­compliance and behavior.
The chain of ethics and compliance accountability
is as follows:• G roup Compliance reports twice a year to the
Audit & Finance Committee (AFC), a c­ ommitteeof the Board of Directors (BoD).
• G
 roup Audit reports all compliance investi­
gations to the AFC.
• A
 ll compliance-related matters are communicated to the BoD via the Chair of the AFC or
the Chief Legal Officer/General Counsel, who
attends all BoD meetings as the BoD secretary.
• T he Head of Audit presents all investigations
and cases to the AFC. These cases arereported to the BoD by the Chair of the AFC
biannually and as required.
• T he Compliance Review Board, which ischaired by the Head of Compliance and has
the Head of Audit as a member, meets
biannually to review all reported cases.
• F rom January 1, 2023, to December 31, 2023,
there were 16 cases.
Oerlikon’s robust compliance and integrity platform
has evolved continually since its launch in 2009.
Our CoC was updated in 2020, making electronic
training a mandatory annual activity for all internal
stakeholders.
Complementing the digital training, the Face2Face(F2F) programs provide the CoC training for
operational employees without digital access.
­­Further developments in promoting ethical behavior
include enhancing our business partner integrity

screening process and communicating our stanceagainst bribery & corruption. Acknowledgment of
Oerlikon’s Supplier Code of Conduct for third­parties is embedded in the company’s contractual
terms and conditions.
The compliance program’s framework has threepillars:
1.	Prevention: policies, directives, training, the
CoC, risk assessment, maturity assessment,compliance councils, internal controls andmetrics, examples and Q&A in all employee
meetings.
2.	Early detection: 24/7 reporting hotline, continuous compliance reviews, controls and internal audits, allegation management process.
3.	Response: disciplinary action on compliancebreaches, process adaptation, resolution plans,
remediation of internal control systems,
fine-tuning of policies.
Moreover, Oerlikon has broadened the scope of its
governance framework by integrating ethics within
its leadership development initiatives, focusing on
the following:
1.	Providing substantive support tohigh-performing teams.
2.	Reinforcing awareness of our commitment
to sustainable practices.
3.	Measuring successes against the triple
bottom-line parameters.
Above all, the CoC prioritizes Oerlikon’s most significant asset: its extraordinary pool of talented
people. By promoting company-wide understanding and appreciation of the core values
encapsulated in the CoC, our leadership teamensures that our employees comply with and takepride in these standards. This creates our s­ trongest
foundation for pursuing the continued evolution of
a comprehensive sustainable ethics and c­ ompliancegovernance framework.
In early 2022, we published our new Sustainability& HSE Policy. All policies at Oerlikon are approvedby the BoD and EC. Responsibility for oversightand implementation rests with a cross-functional

SUSTAINABILITY REPORT 2023
05 Our Governance Commitment

team that includes members from sustainability
management, human resources, compliance, legal
and procurement.
Oerlikon’s policies are publicly available atwww.oerlikon.com/en/sustainability/our-policies/.
Upon issuance of a new, revised or updated policy,
we disseminate the information globally via ourinternal communication platforms, such as theintranet and Yammer. The information is also sharedwith all leaders and senior management to relay totheir divisions and teams.

POLICIES (P), DIRECTIVES (D) AND
GUIDELINES (G) AVAILABLE ONLINE
Name		

LatestLatest			

Issue

Review• D Anti-Corruption and Anti-Bribery

2012

2019

• P Avoiding Conflict of Interest

2019

2019

•	P Policy Against the Use

2021

2021

• Code of Conduct

2021

2021

•	P Policy on Global Antitrust

2015

2019

2021

2021

2021

2021

of Child Labor

Compliance•	P Non-Discrimination andAnti-Harassment Policy• P Against Human Trafficking
and Slavery• Safety Data Sheets (SDS)

Ongoing Ongoing• Supplier Code of Conduct

2022

2022

P Sustainability and Health,
•	

2021

2021

• D Unannounced Inspections

2015

2019

• P Reporting (Whistleblowing) Policy

2021

2021

Safety & Environment (HSE) Policy

Can be found at:www.oerlikon.com/en/
sustainability/our-policies

Oerlikon is committed to training all employees withdigital access annually. Since 2017, electronic compliance training in the CoC and data privacy has
been mandatory for Oerlikon employees. Since then,participation rates for the CoC e-training have
improved steadily, with 60% of ­registered users
completing the training in 2017. This figure rose to
90% in 2019, 91% in 2020 and then 97% in 2021,

excluding employees in ­Germany due to agreementswith worker councils and employees from companies acquired in 2021. In 2022, 95.3% of registeredemployees worldwide, including staff in Germany
and acquired entities, completed the e-training. In
2023, 95.6% of registered employees worldwide,
including acquired entities, completed the e-training.
In 2020, Oerlikon committed to providing regular
CoC training to colleagues without digital access atwork. Due to the pandemic, the rollout of the training
was delayed. In November 2022, the Surface­Solutions Division started rolling out the training andorganized train-the-trainer sessions for several entities to prepare them to conduct training on theirown which continued into 2023. The goal is to provide the tools and materials for the sites to conduct
the training according to the availability of the production employees and their shift schedules. At thePolymer Processing Solutions Division, synergies
are being established with the Surface Solutions
Division to offer F2F training to employees. Our longer-term objective is to have more than 95% of all
employees trained both digitally and F2F by 2030.
Furthermore, as part of the quarterly certification,legal entity heads must certify that they have met
all compliance-related obligations. In addition, allcontracts with suppliers, vendors and third parties
refer to the Group CoC and Supplier Code of­Conduct. All parties who are interested in working
with Oerlikon must adhere to Oerlikon’s CoC and/or their own code of conduct.

MECHANISMS FOR SEEKING ADVICE AND
RAISING CONCERNSGRI 2-26
Oerlikon updated its Reporting (Whistleblowing)
Policy in 2021. The policy is made available to all
employees as well as external stakeholders on thecompany’s website.
Since 2015, we have maintained an active,
24/7/365 reporting hotline, run by an independent
third-party provider, to enable concerned­colleagues to alert us so that we may act swiftly toprevent or address instances of potential wrongdoing. The hotline provides a mechanism forreporting complaints related to wrongdoing or
CoC violations. This includes human rights orhuman sustainability issues, such as harassment,
diversity and inclusion.

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SUSTAINABILITY REPORT 2023
05 Our Governance Commitment

Cases pertaining to the misdirection of funds or tophysical bullying have led to dismissals with cause of
those individuals. Thus, Oerlikon’s CoC ensures thatevery member of staff has a resource to help guide
responsible decision-making in line with our standards of ethics, our culture and values and our commitment to compliance in all our business practices.
To ensure company-wide awareness, we haveengaged in ongoing informational campaigns.
­Initially, we notified employees about the hotline via
posters and through training sessions, townhalls
and internal communications channels. ­Operational
employees in some jurisdictions had messages
sent with their pay notifications. We have also
­prepared materials that walk employees throughthe reporting process. Beginning in 2021, acompliance e-training module included an­
explanation of how to make a whistleblowing­
complaint and F2F training showing operative­
employees how to report via the hotline.
In addition, we encourage employees to feel at­liberty to raise issues with direct line managers,
other colleagues, other managers, humanresources, legal and/or compliance. There is a
dedicated compliance officer in each of the twodivisions of the Group.

Compliance Enforcement
Oerlikon’s Compliance office and Internal Audit
team oversee the company’s internal investigation
protocol.
Compliance Cases
10

2

10

4

7

6

9

8

14

6

16

10

In 2023, we received 16 complaints via thereporting hotline, which is intended primarily toalert management to bribery and corruption issues,
but which yielded information on additional topics
as well. There were 10 substantiated cases: all 10
were related to CoC violations. The company takes
disciplinary action, which can and does include­termination of staff members when evidence
proves improper behavior.

PROCESSES TO REMEDIATE NEGATIVEIMPACTSGRI 2-25
Both our CoC and our Reporting (Whistleblowing)
Policy prohibit retaliation for complaints andallegations brought in good faith. We take all­­complaints seriously, including those submitted
anonymously, and review the evidence provided
with the ­complaint, as well as additional evidence
gathered during any investigation.
Group Compliance and Group Audit serve as
first-line investigators of complaints received via
the whistleblowing hotline, and the Compliance
Review Board, which is part of the Group’s
governance oversight structure, reviews all­­complaints. When more specific expertiseis required, we hire the necessary related experts.
Compliance complaints are communicated to thehighest governance body, the AFC and the BoD.
Any matter that represents a potential material
effect on the company’s profit and loss, forexample, due to a potential fine or sanction, or
brand reputation, or any incident that has caused
harm to any employee that could lead to litigation,is regarded as high risk.
Oerlikon’s Reporting (Whistleblowing) Policy is available online: www.oerlikon.com/en/sustainability/
our-policies/. Employees can also access it in a totalof 11 languages on the company’s intranet.

0.69

0.5

0.15

2018

2019

0.2

0.25

2020

20211

0.1

2022

Total number of cases
Number of substantiated cases
Financial impact (in CHF million)
1

The damages incurred were all related to cyberfraud.

2023

CHILD LABORGRI 408-1
Oerlikon does not participate in and does not accept
child labor. We support all international conventions
pertaining to the nonuse of child labor, and our­Supplier Code of Conduct condemns child labor.

SUSTAINABILITY REPORT 2023
05 Our Governance Commitment

The Oerlikon Policy Against the Use of Child
Labor is endorsed by Oerlikon’s BoD and wasissued in 2021. It includes Oerlikon’s directives onreporting suspected incidences of child labor,
investigating those allegations promptly andtaking all appropriate actions against the practiceof child labor, including, as warranted, sanctions
against or termination of relationships with­partners or suppliers engaged in those practices.
Oerlikon strongly urges employees or representatives to report any incident or complaint of childlabor to their immediate supervisor, their department head, any senior manager of their business
unit, their local human resources representative,
their local procurement representative or over the­Oerlikon 24/7 reporting hotline (SpeakUp).
Any reported allegations of child labor will bepromptly investigated. If use of child labor is foundin Oerlikon’s supply chains, we will take all­appropriate measures to mitigate any risks bydeveloping a responsible solution, which may
include working in partnership with the supplier
and/or a termination.
Adherence to nonuse of child labor is clearly definedin our policy and Code of Conduct as well as our­Supplier Code of Conduct but is managed locallyand by suppliers themselves. We do not currently
have any system in place that gathers data regarding
which operations and suppliers are considered tohave significant risks of such incidents.
Under the Swiss Ordinance on Due Diligence andTransparency in relation to Minerals and Metals
from Conflict-Affected Areas and Child Labour(DDTrO), companies are obliged to inspect whether
there is reasonable suspicion of child labor, and, if
there is reasonable suspicion of child labor, toadhere to due diligence and reporting obligations.
Companies are exempted from this obligation if
they can prove that the services and products­provided to them come from countries with a low
risk of child labor.
Oerlikon monitors, reviews and documents its
supply chain regularly regarding child laborsuspicions. Due to the result of these regular­monitoring activities and checks, Oerlikon­
concludes that it is exempted from the due­diligence and reporting obligations under Art. 964j
et seqq. of the Swiss Code of Obligations.

FORCED OR COMPULSORY LABOR &HUMAN RIGHTS ASSESSMENTGRI 409-1
Oerlikon is committed to a safe work environmentthat is free from and provides protection against
human trafficking and slavery, including forcedlabor and unlawful child labor. Oerlikon does nottolerate or condone human trafficking or slavery in
any part of its global organization. Oerlikon p­ rohibits
human trafficking and slavery.
Employees, contractors, subcontractors, vendors,
suppliers, partners and others through whom
­Oerlikon conducts business must not engage, be
involved in or participate in any practice that constitutes human trafficking or slavery. The Policy Against
Human Trafficking and Slavery is endorsed by­Oerlikon’s BoD and was issued in 2021. It includes
Oerlikon’s directives on reporting suspected incidences of human trafficking or slavery, investigating
those allegations promptly and taking all appropriate
actions against the practices of human trafficking or
slavery, including, as warranted, sanctions against
or termination of relationships with partners or­suppliers engaged in those practices.
As with the process defined for child labor, Oerlikonstrongly urges employees to report any incident orcomplaint of human trafficking to their immediate
supervisor, their department head, any senior ­managerof the business unit, their local human resources representative, their local procurement representative orover the 24/7 reporting hotline (SpeakUp).
Any reported allegations of human trafficking will
be promptly investigated, and Oerlikon will takeappropriate disciplinary action for the violation ofthis policy, which may include the discharge of
employees, subcontractors and agents.
Our operations and suppliers must adhere to thenonuse of forced or compulsory labor, which isclearly stipulated in our policy and CoC and­Supplier Code of Conduct. Management, tracking
and actions taken are handled locally and by­suppliers themselves. We do not currently haveany system in place that gathers data regarding
which operations and suppliers are considered tohave significant risks of such incidents.
Although Oerlikon does not undertake specifichuman rights reviews or impact assessments, we

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SUSTAINABILITY REPORT 2023
05 Our Governance Commitment

do carry out frequent employee and labor relations/rights risk assessments of our own operations in various countries across the world, as well
as t­horough compliance audits of our policies,
including human resources, with applicable­legislation and corporate policies and instructions.
We will continue to monitor our business and theindustries and markets we serve to identify­additional areas of compliance focus through2030 and beyond.

ANTI-CORRUPTION AND ANTI-BRIBERYGRI 205-1, 2

dignity. Each individual has the right to work in a
professional atmosphere that promotes equal
employment opportunities and prohibits discriminatory practices, including harassment. Therefore,
Oerlikon expects that all relationships among­persons in the workplace will be business-like andfree of bias, prejudice and harassment.
In 2021, Oerlikon issued a Non-Discrimination andAnti-Harassment Policy, endorsed by Oerlikon’s
BoD, to underscore the importance of this topic
within the company.

The policy clearly defines that no one should bediscriminated against on the grounds of race,color, national origin, religion, sex, age, physical
Oerlikon and its employees are neither to engage disability, mental disability, medical condition,
nor assist in any behavior that might be construed ancestry, alienage or citizenship status, maritalas corruption or bribery. We support all ­international status, creed, genetic information, height orconventions and local laws that govern anti-­ weight, sexual orientation, gender, gender ­identity,
corruption and anti-bribery.
gender expression, transgender status or any
other characteristic p­ rotected by law. Oerlikon
The Oerlikon Anti-Corruption and Anti-Bribery prohibits and will not tolerate any such discrimiDirective that was approved by the EC has been in nation or harassment.
effect since 2012. The directive, which defines our­ethical business conduct principles in alignment The policy specifies that everyone at Oerlikon has
with the CoC, provides specific guidance with the duty to promote non-discrimination and not toregard to active, passive, direct and indirect tolerate any form of harassment. This cross-­­corruption, direct or indirect benefits, corruption sectional task depends on the active support of all
and bribery, political contributions, charitable employees of Oerlikon. The global human resources­contributions, facilitation payments and giving or team is responsible for implementing this policy.
receiving of gifts, hospitality and entertainment.
Essential elements of this policy are:
The directive is available on Oerlikon’s intranet
and website (www.oerlikon.com/en/sustainability/ •	Recruiting, hiring, training and promoting in all
our-policies/). This topic is covered as part of thejob classifications without regard to race,
annual CoC e-training and F2F training for­color, national origin, religion, sex, age, disability,
employees, and all employees are expected to takealienage or citizenship status, marital status,
creed, genetic information, height or weight,
decisions that align with the principles it details.
sexual orientation, gender identity or genderAs valid for all breaches, Oerlikon strongly urges
expression or any other characteristic
employees to report any incident or complaint of­protected by law.
corruption or bribery to their immediate supervisor, •	Each employee has the opportunity to­contribute their best according to their abilities
their department head, any senior manager of thebusiness unit, their local human resources repreand ­qualifications.
sentative, their local procurement representative or •	The redress of discrimination and harassment,over the 24/7 reporting hotline (SpeakUp).
the removal of barriers and prejudices, alsowith regard to career opportunities•	Ensuring that all personnel actions andNON-DISCRIMINATION­practices are administered in a fair, equalGRI 406-1
and consistent manner.
•	Zero tolerance for harassment of any kind or
Oerlikon is committed to a work environment inbehavior, and prosecution according to the legal
which all individuals are treated with respect andregulations.

SUSTAINABILITY REPORT 2023
05 Our Governance Commitment

For the details regarding the mechanisms forseeking advice or raising concerns and the­processes to remediate negative impacts, pleaserefer to pages 75 and 76.

CUSTOMER PRIVACY
In 2023, Oerlikon did not receive any complaints
from customers or prospects in relation to our useof their personal data or direct marketing activities.
There was no data security breach requiring a notification to data protection authorities. All our
employees passed their annual Group-wide General
Data Protection Regulation (GDPR) training in 2023.
At Oerlikon, we have data protection policies andguidelines that define data protection requirements aswell as roles and responsibilities. We also have ­privacy
notices dedicated to customers and prospects. Our
Group policies and privacy notices are aligned withapplicable data protection laws, in particular theEuropean (GDPR), Swiss and UK data ­protection
requirements. We have also developed local dataprotection guidelines in certain countries – as wehave done so in China in order to comply with Chinese cybersecurity and data protection requirements.

TAX GOVERNANCE AND STRATEGY
Oerlikon ensures that its tax strategy is carried out
in accordance with our CoC, as well as all applicablelegal and regulatory requirements, including thoseconcerning the timely completion and submission oftax returns and the disclosure of tax positions. We
aim to maintain a transparent relationship with tax
authorities in the countries in which we operate,
readily participating in tax audits when necessary topromptly provide requested i­nformation.
The company does not engage in aggressive tax
planning and does not employ convoluted structures or offshore entities to reduce its tax obligations. Furthermore, we uphold arm’s-length principles and adhere to local laws and regulations governing the pricing of intercompany transactions.
The Chief Financial Officer of Oerlikon, who is also amember of the EC, bears responsibility for all financial
matters related to operational management and is
assisted by a team of qualified tax professionals insupport of the Group companies.

TRADE CONTROLGRI 2-6
The international trade of goods is essentially freebut may be subject to restrictions or prohibitions
that states impose to safeguard their national­security interests and the peaceful coexistence ofpeople or to prevent the proliferation of weapons.
These regulations may relate to purchases, sales,
services, technology transfers or payments.
­Additional restrictions may target behavioral changes
of individuals, entities or states, and the scope ofsuch sanctions may encompass (but need not belimited to) asset freezes or travel bans or may eventake the form of total embargoes.
Embargoes usually arise in response to United
Nations Security Council resolutions, decisions of
the Organization for Security and Co-operation in
Europe (OSCE) or common positions of the EU
Council or the US government. Several countries,
including Russia/Belarus, Iran, Cuba, North Korea,
Syria and Sudan, are currently subject to sanctions
regulations.
Management Approach
Oerlikon’s top management attaches importance tothe topic and directs all employees to practice
unconditional compliance. Additionally, we support
nonproliferation efforts and may refrain from a­transaction in cases of continued concerns regarding
the end-use application. This self-restraint prevails
over commercial interest.
To ensure sustainable trade compliance, Oerlikon
has implemented a robust Internal Control Programthat is regularly monitored, continuously developedand safeguarded by state-of-the-art IT measures.
Given the complexity and fluid nature of this subject,
we provide employees with training, as well as
updates on international trade control provisions
and the company’s policies and procedures, which
are designed to ensure that they have:•	Information related to traded items, suchas their nature, origin, components, value andtechnical characteristics.
•	Confirmed the end use and the end user aswell as third parties or agents involved.
Violation by any Oerlikon employee may lead to disciplinary action, including termination of employment.

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SUSTAINABILITY REPORT 2023
06 About this Report

About this Report

REPORTING PRACTICEGRI 2-3
The Oerlikon Sustainability Report 2023 is our fourthreport on our material economic, environmental andsocial impacts and how we manage them.
The report provides an in-depth look at the way weaddress sustainability and implement our sustainability strategy. It also gives an overview of relevant
policies, guidelines and targets established forcontinued improvement in sustainability performance metrics. Furthermore, the report contains a
review of notable achievements in 2023. Oerlikon
intends to continue reporting on sustainability on
an annual basis.
Reporting Scope
The report generally covers all of the OerlikonGroup companies worldwide, including wholly
owned subsidiaries and majority-owned joint ventures, as well as acquired entities. In total, Oerlikon
operates 207 sites in 38 countries in 2023.
The employee data covers employees from all legal
entities of the Group worldwide (see Annual Reportpages 144 and 145). For the environmental andhealth & safety metrics, data from operational sites
were included in the calculation. Operational sites
refer to relevant sites, that is all production sites
and offices with more than 50 employees, plus a
few small offices (< 50 employees) that have provided data in the year under review. The list ofsites/legal entities whose data are consolidated forenvironment and health & safety can be found on
pages 94 to 98 of this report.
Reporting Standards
To define the contents of this report, we havereferred to the GRI Standards 2021, the SASB
Standards and to the results of the materiality

assessment and the material topics identified inthis process (see pages 15 and 16 of this report).
We have also taken into account stakeholder feedback on reporting, best practices in sustainability
reporting and the applicable United Nations SDGs.
GRI Standards are the most widely adopted
global standards for sustainability reporting. Thesestandards help businesses and governments
understand and communicate their impact on avariety of sustainability issues in a common format.
We have mapped our material topics and included
relevant disclosure topics in the GRI content index,
which can be found from pages 82 to 85 of thisreport. Omission from the material issues
addressed in our report does not mean an issue is
not managed.
We have opted in this report to also disclose
according to SASB’s industry category: Industrial
Machinery & Goods. The SASB mapping can befound on page 86. SASB Standards guide thedisclosure of ﬁnancially material sustainability
information by companies to their investors.
Effective as of August 1, 2022, the Value Reporting
Foundation – home to the SASB Standards – consolidated into the IFRS Foundation, which established the ﬁrst International Sustainability Standards
Board (ISSB). SASB Standards now fall under theoversight of the ISSB.
Sections marked with the United Nations SDGs
symbols provide more information on how we
implement strategies and practices that contributetoward supporting these SDGs.
Changes in 2023
The entities acquired in 2023, specifically Riri, areintegrated and consolidated in the 2023 report.
Any new relevant sites opened by Oerlikon in 2023
are also included in the report.

SUSTAINABILITY REPORT 2023
06 About this Report

Data Collection Process
We measure energy consumption at all our operational sites, and the data is consolidated in our SAPBusiness Warehouse. For all environmental metrics,
including energy, renewables, emissions, waste
and water, the total operational sites consolidated
in 2023 are 172, including one small site.
Our energy consumption includes all types ofenergy, including purchased electricity, solar power
generated by us, purchased heat and cooling,natural gas, fuel oil, propane, diesel, gasoline,hydrogen and kerosene.
To calculate emissions, each of our sites is required
to provide the actual CO2 factors for electricity fromtheir respective utility. For fossil fuel, we use average
CO2 factors from various governmental sources.
Sites are required to cross-check locally with respect
to the details provided by their energy suppliers.
The sources for emissions include electricity andsteam generated offsite and all fuels used inboilers and other combustion equipment, including purchased electricity, purchased heat andcooling, natural gas, fuel oil, propane, diesel,
gasoline and kerosene.
The share of disposed waste is calculated as thetotal weight of waste directed to disposal as apercentage of the total weight of waste generated
by Oerlikon.
For our HR data, we use the SAP SuccessFactors
software to manage our people processes, perform analytics and improve visibility and efficiency.
Since SuccessFactors is cloud based, the software
enables us to have real-time updated data about
our employees and their development and helps us
to manage the entire employee life cycle.

majority of Oerlikon’s compliance cases are reported through its 24/7 whistleblowing hotline. Com­
plainants can report anonymously, although we
encourage transparency in order to better handle
cases and to reach a substantiated outcome.
All reported cases are investigated to the full extent
of the facts that have been provided. Cases lacking
in pertinent facts or substantiated evidence areclosed. At the end of each calendar year, Group
Compliance reviews the cases with the Compliance
Review Board (of which the Head of Group
Compliance is the Chair), and the cases are also
reviewed by the Audit and Finance Committee of
the Board of Directors. In the review and assessment of cases, Group Compliance and Internal
Audit make recommendations for modifications tointernal controls and policies and/or proceduresthat may have led to the wrongdoing or any
undesirable behavior.
Reporting Period
This report covers the period between
January 1, 2023, and December 31, 2023.
Independent Assurance SummaryThelimitedassuranceengagementofPricewaterhouseCoopers AG covered Selected
Indicators in our Sustainability Report for the year
ended December 31, 2023. Testing procedures
included – among others – three virtual site visits forrelevant operational sites.The independent practitioner’s limited assurance report can be found on
pages 99 to 101.

CONTACTS
Our Total Accident Frequency Rate (TAFR) data for
health and safety is collected through a monthly
reporting process using SAP Business Warehouseand Cognos TM1. In 2023, health and safety data
include data from 187 operational sites, including
the small site that have provided environmental
data and 15 additional small offices that have delivered health and safety data.

Group Headquarters
OC Oerlikon Corporation AG, Pfäffikon
Churerstrasse 1208808 Pfäffikon SZ
Switzerland
www.oerlikon.com
Group External Communications
Leng Wong

Our compliance data is collected by the Headof Compliance and Internal Audit teams. The

Tel. +41 58 360 96 14
leng.wong@oerlikon.com

81

82

SUSTAINABILITY REPORT 2023
06 GRI Content Index

GRI Content Index

Oerlikon has reported in accordance with the GRI Standards for the period January 1, 2023 to December 31, 2023.
For the Content Index – Essentials Service, GRI Services reviewed that the GRI content index has been presented ina way consistent with the requirements for reporting in accordance with the GRI Standards, and that the informationin the index is clearly presented and accessible to the stakeholders.

GRI Standards/Disclosures

Location/Direct answer

Page

GRI 1: Foundation 2021
GRI 2: General Disclosures 2021
1. The Organization and its Reporting Practices
2-1

Organizational details

Annual Report 2023

29

2-2

Entities included in the organization's sustainability reporting

Sustainability Report 2023

94

2-3

Reporting period, frequency and contact point

Sustainability Report 2023

80

2-4

Restatements of information

There were no restatements in
2023.

2-5

External assurance

Sustainability Report 2023

99

2. Activities and Workers
2-6

Activities, value chain and other business relationships

Sustainability Report 2023

17, 64, 79

2-7

Employees

Sustainability Report 2023

47, 86, 90

2-8

Workers who are not employees

Sustainability Report 2023

47, 902-9

Governance structure and composition

Sustainability Report 2023

11, 70, 71,
72

2-10

Nomination and selection of the highest governance body

Sustainability Report 2023

11, 70, 71,
72

2-11

Chair of the highest governance body

Sustainability Report 2023

11, 70, 71,
72

2-12

Role of the highest governance body in overseeing themanagement of impacts
Delegation of responsibility for managing impacts

Sustainability Report 2023

11, 70, 71,
72

Sustainability Report 2023

70

Sustainability Report 2023

72

2-15

Role of the highest governance body in sustainability
reporting
Conflicts of interest

Annual Report 2023

36 – 38

2-16

Communication of critical concerns

Sustainability Report 2023

70

2-17

Collective knowledge of the highest governance body

Sustainability Report 2023

70

2-18

Evaluation of the performance of the highest governancebody

Sustainability Report 2023

70, 72

3. Governance

2-13
2-14

SUSTAINABILITY REPORT 2023
06 GRI Content Index

GRI Standards/
Disclosures

Disclosure

Location/Direct answer

Page

2-19

Remuneration policies

Annual Report 2023

54 – 70

2-20

Process to determine remuneration

Annual Report 2023

54 – 70

2-21

Annual total compensation ratio

Confidentiality constraints on
employee compensation. Oerlikoncomplies with the Swiss governments' ordinance against excessive
remuneration, whereby the Board
and Executive Committee's remuneration are voted and approved byshareholders at the AGM. Oerlikonalso reports on the total remuneration of its Board and Executive
Committee, including the remuneration of the highest paid individualfor each governing body.

4. Strategy, Policies and Practices
2-22Statement on sustainable development strategy

Sustainability Report 2023

5, 10

2-23

Policy commitments

Sustainability Report 2023

74

2-24

Embedding policy commitments

Sustainability Report 2023

74

2-25

Processes to remediate negative impacts

Sustainability Report 2023

19, 762-26

Mechanisms for seeking advice and raising concerns

Sustainability Report 2023

19, 752-27

Compliance with laws and regulations

Sustainability Report 2023

74

2-28

Membership associations

Sustainability Report 2023

23

5. Stakeholder Engagement
2-29

Approach to stakeholder engagement

Sustainability Report 2023

18, 192-30

Collective bargaining agreements

Sustainability Report 2023

52

Sustainability Report 2023

15

Sustainability Report 2023

15

Sustainability Report 2023

36, 37

GRI 3: Material Topics 2021
3-1
3-2

Process to determine material topics
List of material topics

Climate & Energy
GRI 3: Material Topics 2021
3-3Management of material topics

GRI 302: Energy 2016
302-1

Energy consumption within the organisation(gigawatthours-GWh)

Sustainability Report 2023

37, 86, 88

302-3

Energy intensity (MWh / million CHF sales)

Sustainability Report 2023

37, 86, 88

302-4

Reduction of energy consumption

Sustainability Report 2023

37

GRI 303: Water and Effluents 2018
303-1

Interactions with water as a shared resource

Sustainability Report 2023

41

303-2

Management of water discharge-related impacts

Sustainability Report 2023

41

303-3

Water withdrawal (thousand m3)

Sustainability Report 2023

41, 88

GRI: 305 Emissions 2016
305-1

Direct (Scope 1) GHG emissions

Sustainability Report 2023

43, 88305-2

Energy indirect (Scope 2) GHG emissions

Sustainability Report 2023

43, 88305-4

GHG emissions intensity (tons CO2 equivalents/million CHF)

Sustainability Report 2023

43, 8883

84

SUSTAINABILITY REPORT 2023
06 GRI Content Index

GRI Standards/
Disclosures

Disclosure

Location/Direct answer

Page

Management of material topics

Sustainability Report 2023

40

306-1

Waste generation and significant waste-related impacts

Sustainability Report 2023

40

306-2

Significant waste-related impacts

Sustainability Report 2023

40

306-3

Waste generated (metric tons)

Sustainability Report 2023

40, 89306-4

Waste diverted from disposal (metric tons)

Sustainability Report 2023

40, 89306-5

Waste directed to disposal (metric tons)

Sustainability Report 2023

40, 89Sustainability Report 2023

12, 28Sustainability Report 2023

55

Circular Economy
GRI 3: Material Topics 2021
3-3

GRI 306: Waste 2020

Innovation
GRI 3: Material Topics 2021
3-3Management of material topics

Health & Safety
GRI 3: Material Topics 2021
3-3Management of material topics

GRI 403: Occupational Health and Safety 2018403-1

Occupational health and safety management system

Sustainability Report 2023

55

403-2

Hazard identification, risk assessment, and incident
investigation
Occupational health services

Sustainability Report 2023

55

Sustainability Report 2023

58

Sustainability Report 2023

59

403-5

Worker participation, consultation, and communication
on occupational health and safety
Worker training on occupational health and safety

Sustainability Report 2023

58

403-6

Promotion of worker health

Sustainability Report 2023

59

403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Workers covered by an occupational health and safety
management system
Work-related injuries

Sustainability Report 2023

60

Sustainability Report 2023

59

Sustainability Report 2023

57, 86, 92

Sustainability Report 2023

47

403-3
403-4

403-8
403-9

Employment Practices & Education
GRI 3: Material Topics 2021
3-3Management of material topics

GRI 201: Economic Performance 2016
201-1

Direct economic value generated and distributed

Annual Report 2023

10 – 12

201-3

Defined benefit plan obligations and other retirement
plans

Annual Report 2023

110 – 113

Sustainability Report 2023

50

GRI 202: Market presence 2016
202-2

Proportion of senior management hired from the local
community

GRI 203: Indirect Economic Impacts 2016
203-1

Infrastructure investments and services supported

Sustainability Report 2023

53

203-2

Significant indirect economic impacts

Sustainability Report 2023

28

GRI 401: Employment 2016
401-1

New employee hires and employee turnover

Sustainability Report 2023

47, 92401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

Sustainability Report 2023

47

SUSTAINABILITY REPORT 2023
06 GRI Content Index

GRI Standards/
Disclosures

Disclosure

Location/Direct answer

Page

Sustainability Report 2023

52

GRI 402: Labor/Management Relations 2016
402-1

Minimum notice periods regarding operational changes

Employment Practices & Education (con’t)
GRI 404: Training and Education 2016404-1

Training and education per employee (average hours)

Sustainability Report 2023

51

404-2

Programmes for upgrading employee skills and transition assistance programmes
Employees receiving regular performance and careerdevelopment reviews

Sustainability Report 2023

51

Sustainability Report 2023

51

Sustainability Report 2023

48, 93

Sustainability Report 2023

52

Sustainability Report 2023

53

Sustainability Report 2023

64

404-3

GRI 405: Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

GRI 407: Freedom of Association and Collective Bargaining 2016
407-1

Operations and suppliers in which the right to freedomof association and collective bargaining may be at risk

Community engagement
GRI 3: Material Topics 2021
3-3Management of material topics

Responsible sourcing & human rights
GRI 3: Material Topics 2021
3-3Management of material topics

GRI 414: Supplier Social Assessment 2016414-1

New suppliers that were screened using social criteria

During the reporting period there
were no negative social impacts.

64

414-2

Negative social impacts in the supply chain and actions
taken

During the reporting period there
were no negative social impacts.

64

Sustainability Report 2023

70

Governance
GRI 3: Material Topics 2021
3-3Management of material topics

GRI 205: Anti-corruption 2016
205-1

Operations assessed for risks related to corruption

Sustainability Report 2023

78

205-2

Communication and training about anti-corruption
policies and procedures

Sustainability Report 2023

78

Sustainability Report 2023

78

Sustainability Report 2023

76

Sustainability Report 2023

77

GRI 406: Non-discrimination 2016
406-1

Non-discrimination

GRI 408: Child Labor 2016
408-1

Operations and suppliers at significant risk for incidents
of child labor

GRI 409: Forced or Compulsory Labor 2016409-1

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

85

86

SUSTAINABILITY REPORT 2023
06 SASB Mapping

SASB Mapping
Resource Transformation – Industrial
Machinery & Goods
SASB SUSTAINABILITY DISCLOSURE TOPICS & ACCOUNTING METRICS

Topic

SASB Accounting Metric

Code

Reference

Energy Management(1) Total energy consumed,(2) percentage grid electricity,(3) percentage renewable

RT-IG-130a.1

GRI 302-1,3

Workforce Health &Safety(1) Total recordable incident rate
(TRIR),(2) fatality rate, and(3)	near miss frequency rate (NMFR)
for (a) direct employees and(b) contract employees

RT-IG-320a.1

Fuel Economy &Emissions in­Use-phase

Sales-weighted fleet fuel efficiency formedium- and heavy-duty vehicles

 urther Information andFomissionsPages 37 – 39, 88
GRI 403-9
Pages 57 – 58

We consider TAFR to be comparable to
TRIR since the actual number of cases
where i­llnesses did not result from­accidents are low.

RT-IG-410a.1

N.A.

Not applicable.

Sales-weighted fuel efficiency for
non-road equipment

RT-IG-410a.2

N.A.

Not applicable.

Sales-weighted fuel efficiency forstationary generators

RT-IG-410a.3

N.A.

Not applicable.

Sales-weighted emissions of: (1) nitrogenoxides (NOx) and (2) particulate matter(PM) for: (a) marine diesel engines, (b)locomotive diesel engines, (c) on-road
medium- and heavy-duty engines, and(d) other non-road diesel engines

RT-IG-410a.4

N.A.

Not applicable.

Materials Sourcing

Description of the management of risks
associated with the use of critical materials

RT-IG-440a.1

Pages 55, 62,
67 – 68

Remanufacturing
Design & Services

Revenue from remanufactured products
and remanufacturing services

RT-IG-440b.1

N.A.

We do not yet track revenue along this­breakdown. We are evaluating the­possibility of providing such informationin the future.

SASB ACTIVITY METRICS

 urther Information andFomissions

Activity Metric

Code

Reference

Number of units produced
by product category

RT-IG-000.A

Annual Report

Please refer to Oerlikon Annual Report 2023
(Pages 2, 90)

Number of employees

RT-IG-000.B

GRI 2-7

12 620 (FTEs)

Pages 47, 90 – 93

13 638 (Headcount, incl. external temporary
and non-productive on payroll employees)

SUSTAINABILITY REPORT 2023
06 Data Table

Index Table
Non-Financial Matters
Oerlikon’s 2023 Sustainability Report provides transparency on non-financial matters as defined under
Art. 964a et seqq. of the Swiss Code of Obligations. A summary of the key topics can be found on
pages 24 to 26 in this report. The index table below serves to facilitate the ease of finding the relevant
content and data.

Location

Page

Annual Report 2023

2

Sustainability Report 2023

10, 24

Environmental matters, in particular
the CO2 goals

Sustainability Report 2023

27 – 45

Social Issues and Employee-Related
IssuesSustainability Report 2023

46 – 60

Respect for Human Rights andCombating Corruption

Annual Report 2023: Compliance & Ethics

73

Sustainability Report 2023: Ethics & Integrity

74 – 79

Sustainability Report 2023: Responsible Sourcing & Human Rights

64 – 68

Policies and Due Diligence

Sustainability Report 2023

24, 74 – 79

Conflict Minerals

Sustainability Report 2023

25, 67 – 68Child Labor

Sustainability Report 2023

25, 76 – 77

Main Risks and Measures

Annual Report 2023

71 – 72

Sustainability Report 2023

25

Annual Report 2023

72

Sustainability Report 2023

25

Annual Report 2023

72

Sustainability Report 2023

25, 64 – 68

Main Performance Indicators

Sustainability Report 2023

3, 21, 26

Reporting Scope

Sustainability Report 2023

26, 80 – 81

Assurance

Sustainability Report 2023

26,
99 – 101

Governance and Approval

Sustainability Report 2023

26, 70 – 72

Business Model

Operational and Sustainability Risk

Risk Related to Business Relations

87

88

SUSTAINABILITY REPORT 2023
06 Data Tables
Table

Data Tables1
ENVIRONMENTAL TOPICS
GRI
Disclosures

302-1

Disclosure Description

2023

2022

20212

2020

Electric power

326.9

325.9

309.7

302.5

– Renewable electrical power consumed

113.5

97.2

68.8

n.a.

Energy consumption within the organization (gigawatt-hours – GWh)

– % renewable electrical power consumed

34.7%

29.8%

22.2%

n.a.

Natural gas

60.2

60.8

64.8

41.1

Heat and cooling bought

14.6

14.2

14.8

21.2

Gasoline and diesel

23.1

23.0

21.2

19.5

Other energies

5.1

4.8

8.6

5.7

Total energy consumption

429.9

428.8

419.0

389.8

302-3

Energy intensity (MWh / million CHF sales)

159.6

147.4

158.2

172.6

303-3

Water withdrawal (thousand m³)
748.0

756.4

707.0

698.6

3

Third party water withdrawal
Surface water

7.0

7.4

7.8

5.7

Ground water

14.3

2.8

2.6

2.1

Sea water

0

0

0

0

Produced water

0

0

0

0

769.3

766.6

717.4

706.4

18.9

19.0

19.5

13.7

0

0

0

0

Total Scope 1 emissions

18.9

19.0

19.5

13.7

Scope 2: Energy indirect (Scope 2) GHG emissions(thousand metric tons in CO2 equivalent)Electricity consumption

123.5

125.4

138.9

127.6

2.6

2.7

2.6

5.0

126.1

128.1

141.5

132.6

Total Scope 1 and Scope 2 GHG Emissions (in kilotons)

145.0

147.2

161.0

146.4

Tons CO2 equivalents per million CHF sales, scope 1+2

53.8

50.6

60.8

64.8

Total water withdrawal
305-1

Emissions
Scope 1: Direct (Scope 1) GHG emissions (thousand metric tons)
CO2 from the use of energy
Other (CH4, N2O, HFCs, PFCs, SF6, NF3 in CO2 equivalent)

305-2

District heat and cooling consumption
Total Scope 2 emissions
305-4

GHG emissions intensity (tons CO2 equivalents/million CHF)

Due to rounding, some totals may not correspond with the sum of the separate figures. All data includes acquisitions, except for 2021.
Excluding 2021 acquisitions.
3
SASB RT-IG-130a.1
1
2

SUSTAINABILITY REPORT 2023
06 Data Table

ENVIRONMENTAL TOPICS
GRI
Disclosures

Disclosure Description

306-3

Waste generated (metric tons)
Hazardous waste

306-4

2023

2022

20212

2020

11 486

10 241

10 2409 640

Non-hazardous waste

11 48813 20011 881

10 729Total waste generated

22 97423 441

22 12120 369Waste diverted from disposal (metric tons)
Hazardous Waste
Preparation for reuse
Recycling

13

1

11

45

8 411

6 887

6 495

5 786

Other recovery operations

0

0

0

3

Total hazardous waste

8 424

6 888

6 506

5 835

Non-hazardous Waste
Preparation for reuse

306-5

98

98

58

11

Recycling

7 986

9 833

8 605

7 761

Other recovery operations

160

155

14

12

Total non-hazardous waste

8 244

10 085

8 677

7 784

Total waste diverted from disposal

16 66816 97315 18213 619Waste directed to disposal (metric tons)
Hazardous Waste
Incineration (with energy recovered)

1 161

1 733

2 120

1 695

Incineration (without energy recovered)

957

904

890

1 295

Landfill

815

944

716

725

Other disposal operations

0

0

0

0

Total hazardous waste

3 062

3 353

3 734

3 805

Non-hazardous Waste
Incineration (with energy recovered)

1 433

1 382

969

665

Incineration (without energy recovered)

281

436

787

948

Landfill

1 529

1 296

1 448

1 332

0

0

0

0

Other disposal operations

1

Total non-hazardous waste

3 244

3 115

3 204

2 944

Total waste directed to disposal

6 306

6 468

6 938

6 749

Excluding 2021 acquisitions.

89

90

SUSTAINABILITY REPORT 2023
06 Data Tables
Table

SOCIAL TOPICS
GRI
Disclosures

Disclosure Description

2-7
2-8

Employees1
Workers who are not employees

Total number of employees

2023

2022

2021

2020

13 63813 26812 82011 475

Total workforce by gender (Oerlikon employees)
Female

3 479

2 909

2 765

2 453

Male

10 15210 33310 005

9 022

Other

7

26

50

–

3 765

3 851

3 807

3 209

Total workforce by region (Oerlikon employees)
Asia
Europe

8 102

7 567

7 290

6 646

Americas

1 771

1 850

1 723

1 620

12 301

11 72211 43310 162

Total number of employees by employment contract
Permanent employees
by gender
Female

3 093

2 524

2 431

2 159

Male

9 203

9 186

9 002

8 002

Other

5

12

0

1

by region
Asia

3 380

3 498

3 470

2 849

Europe

7 180

6 413

6 285

5 753

Americas

1 741

1 811

1 678

1 560

Temporary employees

343

436

315

281

by gender
Female

120

109

100

61

Male

223

322

215

220

Other

0

5

0

0

by region
Asia

12

11

16

11

Europe

315

413

293

263

Americas

16

12

6

7

External temporary employees2

579

–

–

–

by gender
Female

126

–

–

–

Male

451

–

–

–

Other

2

–

–

–

by region
Asia

358

–

–

–

Europe

213

–

–

–

8

–

–

–

227

–

–

–

AmericasNon-productive on payroll employees2
by gender
Female

109

–

–

–

Male

118

–

–

–

Other

0

–

–

–

by region

1
2

Asia

7

–

–

–

Europe

217

–

–

–

Americas

3

–

–

–

SASB RT-IG-000.B
Figures were consolidated for the first time in 2023. Thus, comparable figures in prior years are not available.

SUSTAINABILITY REPORT 2023
06 Data Table

SOCIAL TOPICS
GRI
Disclosures

Disclosure Description

2023

2022

2021

2020

Apprenticeship

188

194

210

196

Female

31

35

38

42

Male

157

159

172

154

Other

0

0

0

–

Asia

8

2

10

2

Europe

177

189

197

188

Americas

3

3

3

6

12 864

12 677

12 25510 957by gender

by region

Full-time employees
by gender
Female

3 030

2 585

2 457

2 168

Male

9 828

10 073

9 798

8 789

Other

6

19

0

–

by region
Asia

3 657

3 835

3 758

3 200

Europe

7 454

7 009

6 792

6 158

Americas

1 753

1 833

1 705

1 599

Part-time employees

774

591

565

518

by gender
Female

449

324

314

288

Male

324

260

211

191

Other

1

7

40

39

by region
Asia

108

16

49

9

Europe

648

558

498

488

Americas

18

17

18

21

Total women in workforce by region (Oerlikon Employees)
Asia

772

778

765

674

Europe

2 313

1 718

1 618

1 408

Americas

394

413

388

374

Total

3 479

2 909

2 771

2 456

20.5%

20.2%

20.1%

21.0%

Total women in workforce by region (Oerlikon Employees %)Asia
Europe

28.5%

22.7%

22.2%

21.2%

Americas

22.2%

22.3%

22.5%

23.1%

Total

25.5%

21.9%

21.6%

21.4%

91

92

SUSTAINABILITY REPORT 2023
06 Data Tables
Table

SOCIAL TOPICS
GRI
Disclosures

401-1

Disclosure Description

2023

2022

2021

2020

9.6%

11.3%

10.4%

6.7%

New employee hires and employee turnover
Turnover of all employees
Asia
Europe

11.1%

10.5%

9.0%

5.7%

Americas

18.0%

23.7%

20.9%

23.1%

Total

11.1%

12.8%

11.2%

8.6%

Turnover of all female employees
Asia

9.2%

8.6%

9.7%

8.9%

Europe

7.6%

15.0%

11.0%

7.0%

Americas

22.0%

20.9%

18.6%

24.8%

Total

9.9%

14.2%

11.8%

10.2%

Hires of all employees
Asia

632

540

517

446

Europe

1 596

1 354

1 093

1 143

Americas

543

512

499

431

Total

2 771

2 406

2 109

2 020

Asia

93

100

88

86

Hires of female employees

403-9(2018)

Europe

283

419

225

273

Americas

79

115

72

127

Total

455

626

385

486

Number and rate of fatalities as a result of work-related injury

0

0

01

0

Number of high-consequence work-related injuries (excluding fatalities)

3
0.03

Occupational health and safety:
injuries, lost days, diseases and fatalities 2018
Employees

Rate of high-consequence work-related injuries (excluding fatalities)

2

2

1

1

0.02

0.021

0.01

85

84

691

64

0.72

0.75

0.721

0.68

Number of lost time accidents

67

63

521

40

Number of medical treatment accidents

18

21

171

24

23 739 295 22 432 401 19 296 6941

18 779 569

Number of recordable work-related injuries
Rate of recordable work-related injuries

Number of hours worked
Non-Employees

1

Number and rate of fatalities as a result of work-related injury

0

0

01

0

Number of high-consequence work-related injuries (excluding fatalities)

0

0

01

0

Number of recordable work-related injuries

0

1

11

1

Excluding 2021 acquisitions

SUSTAINABILITY REPORT 2023
06 Data Table

SOCIAL TOPICS
GRI
Disclosures

Disclosure Description

405-1

Diversity of governance bodies and employees

2023

2022

2021

2020

25%

14%

29%

29%

Composition of governance bodies
Board of Directors
Women in Board (percentage)
Age group diversity (percentage)<30 years old

0

0

0

0

30 – 50 years old

25%

29%

29%

29%

>50 years old

75%

71%

71%

71%

9

8

6

7

20%

20%

17%

25%

Number of nationalities
Executive Committee
Women in Executive Committee (percentage)
Age group diversity total (percentage)<30 years old

0

0

0

0

30 – 50 years old

40%

40%

33%

50%

>50 years old

60%

60%

67%

50%

2

2

3

3

Women that are global leaders

7

9

7

10

Men that are global leaders

61

60

57

67

Number of nationalities
Employees that are global leaders

Age group diversity (percentage)<30 years old

0%

0%

0%

0%

30 – 50 years old

38%

43%

53%

51%

>50 years old

62%

57%

47%

49%

Number of nationalities

15

11

11

14

Percentage Women

22%3

19%2

21%

20%

Percentage Men

78%

81%

79%

80%

High Potential Talent Programs1
3

2

Age group diversity (percentage)<30 years old

7%

9%

0%

4%

30 – 50 years old

89%

89%

100%

92%

>50 years old

4%

2%

0%

4%

Number of nationalities

19

18

8

9

Women in total workforce

3 479

2 909

2 765

2 453

Men in total workforce

10 15210 33310 005

9 022

7

26

50

–
15.2%

Total workforce (Oerlikon workforce)

Other
Age group diversity (percentage)<30 years old

14.7%

16.1%

16.3%

30 – 50 years old

57.5%

60.2%

56.9%

56.3%

>50 years old

27.9%

23.6%

26.8%

28.5%

Nationalities
Number of nationalities among female

72

62

58

63

Number of nationalities among male

98

96

90

87

Other
Total number of nationalities

1
2

2

3

2

–

105

102

94

93

Includes the Group Horizons, Polymer Processing Solutions Division’s OMF+ and the regional RISE high potential talent programs
Excluding 2021 acquisitions.

93

94

SUSTAINABILITY REPORT 2023
06 Sites Consolidated

Entities and Sites Consolidated in
Sustainability Reporting
GRI 2-2
For Oerlikon’s sustainability reporting, Oerlikon consolidates data from all its operational sites. Total operational sites include relevantsites – all production/manufacturing sites and large offices (>50 employees) – and a few small offices (<50 employees) when data
is provided. Generally, the company excludes data from minority-owned sites, and data from acquisitions are consolidated in theyear following the acquisition. This approach differs slightly from its consolidated financial statements, where legal entities ownedby the company are consolidated and acquisitions are included after the closing of the acquisition.
In 2023, the company consolidated environmental data from 172 sites, including 1 small office. For health and safety, data from 187
sites was consolidated, that is including the data provided by the 1 small office with environmental data and 15 additional small offices.

SITES CONSOLIDATED IN 2023 FOR ENVIRONMENTAL DATACountry

City

Site

Argentina

Buenos Aires

Oerlikon Balzers Revestimentos Metálicos Ltda

Argentina

Córdoba

Oerlikon Balzers Revestimentos Metálicos Ltda

Austria

Kapfenberg

Oerlikon Balzers Coating Austria GmbH

Austria

Ohlsdorf

Oerlikon Balzers Coating Austria GmbH

Austria

StainzOerlikon Balzers Coating Austria GmbH

Belgium

Sint-Truiden

Oerlikon Balzers Coating Benelux N.V./S.A.

BrazilJundiaí, SP

Oerlikon Balzers Revestimentos Metálicos Ltda

BrazilSáo José dos Pinhais-PR

Oerlikon Balzers Revestimentos Metálicos Ltda

BrazilSão Paulo

Oerlikon Friction Systems do Brasil Ltda.

CanadaFort Saskatchewan, AB

Oerlikon Metco (Canada) Inc.

CanadaGuelphOerlikon Balzers Coating USA Inc.

China

Beijing

Oerlikon Textile Technology

China

Changchun

Oerlikon Balzers Coating (Suzhou) Co., Ltd. Changchun Branch

China

Changchun

Oerlikon Metco Surface Technology (Shanghai) Co., Ltd. Changchun Branch

China

Changzhou

Oerlikon Balzers Coating (Suzhou) Co. Ltd. Changzhou Branch

China

Chengdu

Oerlikon Balzers Coating (Suzhou) Co.,Ltd. Chengdu Branch

China

Chengdu

Oerlikon Friction Systems (China) c/o Oerlikon Metco Surface Technology (Shanghai) Co., Ltd. Chengdu Branch

China

Chongqing

Oerlikon Balzers Coating (Suzhou) Co.,Ltd. Chongqing Branch

China

DalianOerlikon Balzers Coating (Suzhou) Co., Ltd. Dalian Branch

China

DongguanOerlikon Balzers Coating (Suzhou) Co., Ltd. Dalian Branch

China

Hanzhong

Oerlikon Balzers Coating (Suzhou) Co., Ltd. Hanzhong Branch

China

Jinan

Oerlikon Balzers Coating (Suzhou) Co.,Ltd Jinan Branch

China

Shanghai

Oerlikon Metco Surface Technology (Shanghai) Co. Ltd.

China

ShiyanOerlikon Balzers Coating (Suzhou) Co., Ltd Shiyan Branch

China

SuzhouOerlikon Balzers Coating (Suzhou) Co., Ltd.

China

SuzhouOerlikon (China) Technology Co., Ltd.

China

Tianjin

Oerlikon Balzers Coating (Suzhou) Co., Ltd. Tianjin Branch

China

WenLing

Oerlikon Balzers Coating (Suzhou) Co., Ltd. WenLing Branch

China

Wuxi

Oerlikon Textile Machinery (Wuxi) Co. Ltd.

China

Xi'an

Oerlikon Balzers Coating (Suzhou) Co., Ltd. Xi'an Branch

China

Yangzhou

Oerlikon Barmag Huitong (Yangzhou) Engineering Co. Ltd.,

China

Hangzhou

Oerlikon HRSflow China Co.Ltd

China

ZigongZigong Golden China Hardfacing Materials Co., Ltd.

Czechia

Jihlava

Oerlikon Balzers Coating Austria GmbH – organizační složka

Finland

Espoo

Oerlikon Balzers Coating Finland OY

SUSTAINABILITY REPORT 2023
06 Sites Consolidated

SITES CONSOLIDATED IN 2023 FOR ENVIRONMENTAL DATACountry

City

Site

Finland

Pirkkala

Oerlikon Balzers Coating Finland Oy

FranceCharentilly

Oerlikon Balzers Coating France SAS

FranceClusesOerlikon Balzers France SAS

FranceDuttlenheim

Oerlikon Balzers Coating France SAS

FranceFerrières-en-Brie

Oerlikon Balzers Coating France SAS

FranceLimoges

Oerlikon Balzers Coating France S.A.S.

FranceMaîcheCoeurdor SAS

FranceMamirolle

Coeurdor SAS

FranceMamirolle

Coeurdor SAS

FranceSaint-Quentin-Fallavier-Cedex

Oerlikon Balzers Coating France SAS

Germany

Barchfeld

Oerlikon Metco WOKA GmbHGermany

BarlebenOerlikon AM Europe GmbHGermany

Bergisch Gladbach

Oerlikon Balzers Coating Germany GmbHGermany

Bernkastel-Kues

Oerlikon Barmag, Zweigniederlassung der Oerlikon Textile GmbH & Co. KG

Germany

Bielefeld

Oerlikon Balzers Coating Germany GmbHGermany

BingenOerlikon Balzers Coating Germany GmbHGermany

BremenOerlikon Friction Systems (Germany) GmbHGermany

Dietenheim

Oerlikon Balzers Coating Germany GmbHGermany

Erkelenz

Oerlikon Balzers Coating Germany GmbHGermany

Garching

Oerlikon AM Europe GmbHGermanyLangenfeld

Oerlikon Metco Coating Services GmbHGermany

Neumünster

Oerlikon Neumag Zweigniederlassung der Oerlikon Textile GmbH & Co. KG

Germany

Nürnberg

Oerlikon Balzers Coating Germany GmbHGermany

Raunheim

Oerlikon Metco Europe GmbHGermany

Remscheid

Oerlikon Barmag Zweigniederlassung der Oerlikon Textile GmbH & Co. KG

Germany

Salzgitter

Oerlikon Metco Coatings GmbHGermany

Salzgitter

Oerlikon Metaplas GmbHGermany

Schopfheim

Oerlikon Balzers Coating Germany GmbHGermany

Stetten a.k.M.

Oerlikon Balzers Coating Germany GmbHGermany

Stollberg

Oerlikon Balzers Coating Germany GmbHGermany

Thyrnau

Oerlikon Balzers Coating Germany GmbHGermany

Wörnitz

Oerlikon Balzers Coating Germany GmbH

Hungary

Debrecen

Oerlikon Eldim (HU) Kft.

Hungary

Székesfehérvár

Oerlikon Balzers Coating Austria GmbH – Magyarországi Fióktelepe

India

Ahmedabad, Gujarat

Oerlikon Balzers Coating India Pvt. Ltd.

India

Aurangabad

Oerlikon Balzers Coating India Pvt. Ltd.

India

Bangalore

Oerlikon Balzers Coating India Pvt. Ltd.

India

Bangalore

Oerlikon Metco Coating Services India c/o Oerlikon Balzers Coating India Pvt. Ltd.

India

Changdigarh

Oerlikon Balzers Coating India Pvt. Ltd.

India

Chennai

Oerlikon Balzers Coating India Pvt. Ltd.

India

Chennai

Oerlikon Friction Systems (India) Private

India

Jamshedpur

Oerlikon Balzers Coating India Pvt. Ltd.

India

Manesar

Oerlikon Balzers Coating India Pvt. Ltd.

India

Mumbai

Oerlikon Textile India Pvt. Ltd.

India

Pune

Oerlikon Balzers Coating India Pvt. Ltd.

India

Pune

Oerlikon HRSflow India

India

Pune

Oerlikon Metco Friction Systems (India) Private Limited

India

Vadodara Gujarat

Oerlikon Textile India Pvt Ltd.

Italy

Badia al Pino

AMOM S.p.A.

Italy

Bentivoglio

Oerlikon Balzers Coating Italy S.p.A.

Italy

Brugherio

Oerlikon Balzers Coating Italy S.p.A.

95

96

SUSTAINABILITY REPORT 2023
06 Sites Consolidated

SITES CONSOLIDATED IN 2023 FOR ENVIRONMENTAL DATACountry

City

Site

Italy

Caivano (NA)

Oerlikon Friction Systems (Italia) S.r.l.

Italy

Firenze

FCM S.P.A

Italy

LimenaOerlikon Balzers Coating Italy S.p.A.

Italy

Missaglia

Oerlikon Balzers Coating Italy S.p.A.

Italy

Padua

Riri SA

Italy

Palazzo Pignano, CR

Teknoweb Materials S.r.l.

Italy

Palazzolo sull’Oglio

S.P.M. Pressofusione S.r.l.

Italy

Poggio a Caiano

Riri SA/Cobrax Metal Hub

Italy

San Polo di Piave, TV

Oerlikon HRSflow Italy

Italy

Scarperia e San Pietro a Sieve

DMC S.r.l.

Italy

TiranoRiri SAJapan

Hiratsuka

Oerlikon Japan Co., Ltd. Balzers, HQ/Hiratsuka Factory

Japan

Kobe

Oerlikon Japan Co., Ltd. Balzers, Kobe Factory

Japan

NagoyaOerlikon Nihon Balzers and Oerlikon Friction Systems (Japan)

Japan

Nagoya-shi

Oerlikon Japan Co., Ltd. Metco

Japan

Osaka

Oerlikon Japan Co., Ltd. Metco

Japan

Shizuoka

Oerlikon Japan Co., Ltd. Balzers, Shizuoka FactoryJapan

Tochigi

Oerlikon Japan Co., Ltd. Balzers, Tochigi Factory

Japan

Tokyo

Oerlikon Japan Co., Ltd. Metco

Korea

Busan

Oerlikon Balzers Coating Korea Co. Ltd.

Korea

Gunsan-si

Oerlikon Balzers Coating Korea Co. Ltd.

Korea

Gyeongsan

Oerlikon Balzers Coating Korea Co., Ltd.

Korea

Pyeongtaek

Oerlikon Balzers Coating Korea Co. Ltd.

LiechtensteinBalzers

Oerlikon Balzers Coating AG

Luxembourg

Niedercorn

Oerlikon Balzers Coating Luxembourg s.à.r.l.

Malaysia

Johor Bahru

Oerlikon Balzers Coating Malaysia Sdn.Bhd.

MexicoQuerétaro, Qro.

Oerlikon Balzers Coating México, SA de CV

MexicoQuerétaro, Qro

Oerlikon Balzers Coating México, SA de CV (PPD)

MexicoSaltillo

Oerlikon Balzers Coating México, SA de CV

Netherlands

Lomm

Oerlikon Eldim (NL) B.V.

Philippines

Calamba City, Laguna

Oerlikon Balzers Coating Philippines, Inc.

PolandKędzierzyn-Koźle

Oerlikon Balzers Coating Poland Sp. z o.o.

PolandPolkowice

Oerlikon Balzers Coating Poland Sp. z o.o.

PolandTczew

Oerlikon Balzers Coating Poland Sp. z o.o.

PolandWarsaw

Oerlikon Business Services Europe Sp. z.o.o.

Portugal

Alcobaça

Oerlikon Balzers Coating S.A. Sucursal em Portugal

PortugalFundãoCubimateria Polimentos Lda

PortugalFundãoCubimateria Polimentos Lda

Romania

Maracineni (Piteşti)Oerlikon Balzers Coating Austria GmbH, Kapfenberg Austria, Sucursala Maracineni

Singapore

Singapore

Oerlikon Metco Singapore Pte Ltd.

SlovakiaVeľká Ida

Oerlikon Balzers Coating Slovakia s.r.o.

Spain

Antzuola

Oerlikon Balzers Coating Spain S.A.U.

Spain

Montcada i Reixac

Oerlikon Balzers Coating Spain S.A.U.

SwedenHalmstad

Oerlikon Balzers Coating Sweden AB

SwedenKöpingOerlikon Balzers Coating Sweden AB

SwedenStockholm

Oerlikon Metco Europe GmbH, Filial Norden c/o Oerlikon Balzers Coating Sweden AB

Switzerland

Brügg

Oerlikon Balzers Coating S.A., Brügg

Switzerland

Mendrisio

Riri SA

Switzerland

Pfäffikon

OC Oerlikon Management AG, Pfäffikon

Switzerland

WohlenOerlikon Metco AG

TaiwanHsinchu County

Oerlikon Balzers Coating Taiwan Co., Ltd.

SUSTAINABILITY REPORT 2023
06 Sites Consolidated

SITES CONSOLIDATED IN 2023 FOR ENVIRONMENTAL DATACountry

City

Site

Thailand

Chonburi

Oerlikon (Thailand) Co. Ltd.

TurkeyBursa

Oerlikon Balzers Kaplama Sanayi ve Ticaret Ltd. Şti

UKCheshire

Oerlikon Neomet Ltd.

UK

Milton Keynes

Oerlikon Balzers Coating UK Ltd.

UK

Stockport

Oerlikon Neomet Ltd.

USAAgawam, MA

Oerlikon Balzers Coating USA Inc.

USA

Alma, MI

Oerlikon Balzers Coating USA, Inc.

USA

Amherst, NY

Oerlikon Balzers Coating USA, Inc.

USA

Billings, MT

Oerlikon Metco (US)USA

Brunswick, OH

Oerlikon Balzers Coating USA Inc.

USA

Byron Center, MI

Oerlikon HRSflow USA

USA

Charlotte, NC

Oerlikon Textile Inc.

USA

DaltonOerlikon Textile Inc.

USA

Dayton, OH

Oerlikon Friction Systems (US) Inc.

USA

Elgin, IL

Oerlikon Balzers Coating USA Inc.

USA

Geneva, IL

Oerlikon Balzers United States

USA

Houston, TX

Oerlikon Metco (US) Inc.

USA

Huntersville

Oerlikon AM US Inc.

USA

Lake Orion, MI

Oerlikon Balzers United States

USA

Rancho Cucamonga, CA

Oerlikon Balzers Coating USA Inc.

USA

Mequon, WI

Oerlikon Friction Systems (US) Inc.

USA

Murfreesboro, TN

Oerlikon Balzers Coating USA Inc.

USA

Oklahoma City, OK

Oerlikon Balzers Coating USA Inc.

USA

Pell City, AL

Oerlikon Balzers Coating USA, Inc.

USA

Perrysburg, OH

Oerlikon Balzers Coating USA Inc.

USA

Plymouth, MI

Oerlikon Metco (US) Inc.

USA

Richmond, IN

Oerlikon Balzers Coating USA Inc.

USA

Rock Hill, SC

Oerlikon Balzers Coating USA Inc.

USA

Rock Hill, SC

Oerlikon Balzers Coating USA Inc.

USA

St. Louis, MO

Oerlikon Balzers Coating USA, Inc.

USA

Tawas City, MI

Oerlikon Balzers Coating USA, Inc.

USA

Troy, MI

Oerlikon Metco (US) Inc.

USA

Westbury, NY

Oerlikon Metco (US) Inc.

USA

Wixom, MI

Oerlikon Balzers Coating USA Inc.

VietnamHanoi (Bac Ninh)

Oerlikon Balzers Coating Vietnam Co., Ltd.

97

98

SUSTAINABILITY REPORT 2023
06 Sites Consolidated

ADDITIONAL SITES CONSOLIDATED IN 2023 FOR HEALTH & SAFETY DATACountry

City

Site

Brazil

Sao Paulo

Oerlikon HRSflow Brasil

CanadaWindsor, Ontario

Oerlikon HRSflow Canada

FranceLaval Cedex

Oerlikon HRSflow France

Germany

Bisingen

Oerlikon Metaplas GmbHJapan

Aichi-ken

Oerlikon HRSflow Japan

Korea

Gwangmyeong-si

Oerlikon HRSflow Korea

MexicoSantiago de Queretaro

Oerlikon HRSflow Mexico

Netherlands

Tiel

Coating Netherlands

Portugal

Albergaria-a-Velha

Oerlikon HRSflow Portugal (HRSflow SCC Assistencia Técnica Unipessoal lda)

South Africa

Johannesburg

Oerlikon HRSflow South Africa

Spain

BeguesOerlikon HRSflow Spain

Switzerland

Langenthal

Oerlikon Balzers Coating AG, Balzers (FL), Zweigniederlassung Langenthal

Thailand

Bangkok

Oerlikon HRSflow Thailand

TurkeyBursa

Barmag Teknik Servis Hitzmetler ve Ticaret A.S.

USA

Barboursville

Oerlikon Metco (US)SUSTAINABILITY REPORT 2023
06 Independent Assurance Report

Independent practitioner's limited
assurance reporton 2023 Selected Indicators in the Sustainability Report 2023 to theBoard of Directors of OC Oerlikon Corporation AG
Pfäffikon SZ

We have been engaged by the Board of Directors to perform assurance procedures to provide limited assurance on2023 Selected Indicators in the Sustainability Report 2023 (including the GHG statement) of OC Oerlikon Corporation
AG, Pfäffikon and its consolidated subsidiaries (“OC Oerlikon”) for the period ended 31 December 2023.
Scope and subject matter
Our limited assurance engagement relates to the following indicators published in the Sustainability Report 2023(“2023 Selected Indicators”):•

Environment and Greenhouse Gas Emissions:oEnergy consumption within the organization (page 38);oTotal Scope 1 and Scope 2 GHG emissions (page 45);oEnergy intensity (page 88);oWaste generated (page 40);o

Waste directed to disposal (page 40);o

Waste diverted from disposal (page 40);oImplementing energy management system at all relevant sites (page 37); ando•Social:oo•Increasing the share of electrical energy from renewable sources (page 21).
Increasing % of women in management and leadership roles (page 21); andIncreasing % of women in high potential talent programs (page 21).

Occupational health and safety (page 92):oInjuries;oLost days;oFatalities.

o

Diseases; andWe do not comment on, nor conclude on any prospective information nor did we perform any assurance procedures on
the information other than those stated above for the reporting period 2023.
Criteria
The 2023 Selected Indicators (including the GHG statement) were prepared by the Board of Directors of OC Oerlikon
based on the criteria described in the section “About this Report“ in the Sustainability Report 2023 (on pages 80 and 81).
The section “About this Report“ was developed based, among others, on the GRI Sustainability Reporting Standards(GRI Standards 2021) published by the Global Reporting Initiative (GRI) and the Greenhouse Gas (GHG) Protocol Corporate Standard (Revised edition) and summarised in Appendix A – Oerlikon Sustainability Reporting Criteria (together
the "suitable Criteria").

PricewaterhouseCoopers AG, Birchstrasse 160, Postfach, 8050 Zürich, Switzerland
Telefon: +41 58 792 44 00, www.pwc.ch
PricewaterhouseCoopers AG is a member of the global PricewaterhouseCoopers network of firms, each of which is a separate and independent legal entity.

GRI 2-5

99

100

SUSTAINABILITY REPORT 2023
06 Independent Assurance Report

Board of Directors’ responsibility
The Board of Directors of OC Oerlikon is responsible for preparing the Selected Indicators in the Sustainability Report
Inherent limitations
2022 (including the GHG statement) in accordance with the suitable Criteria. This responsibility includes the design, imThe accuracyand
andmaintenancecompletenessofofthe
theinternal
2023 Selected
Indicatorsin theSustainability
Report(including
the GHG
plementation
control system
relatedto thepreparationof the2023
Selected
Indicatorsin thestatement) areReportsubject2022
to inherent
given theirnature and methods
calculatingand estimating
Sustainability
that arelimitations
free from material
misstatement,
whether for
duedetermining,to fraud or error.
Furthermore,thesuch data.
In addition,
the quantificationof the 2023
Selected
Indicatorsin the Sustainability
Report 2023 (including theBoardof Directors
is responsible
for the selection
andapplicationof the suitable
Criteria.
GHG statement) is subject to inherent uncertainty because of incomplete scientific knowledge used to determine factors
related to the 2023 Selected Indicators in the Sustainability Report 2023 and the values needed to combine e.g. emisIndependence
qualitysions of differentand
gases.
Our management
assurance report will therefore have to be read in connection with the suitable Criteria.
We are independent of the OC Oerlikon in accordance with the International Code of Ethics for Professional Accountants(including International Independence Standards) issued by the International Ethics Standards Board for Accountants
Board of Directors’ responsibility(IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code, which is founded
Thefundamental
Board of Directorsof OC
Oerlikonobjectivity,
is responsible
for the preparation
andpresentationof the Sustainability
Reporton
principles
of integrity,
professional
competence
anddue care, confidentiality
and professional
2023(includingtheGHG
statement)inaccordancewithsuitable
Criteria.
This
responsibility
includesthedesign,implebehaviour.
mentation and maintenance of the internal control system related to the preparation and presentation of the Sustainability Report 2023 that are freematerial
misstatement,
whetherdue toManagement
fraud or error.
the
Board
of deDirecPricewaterhouseCoopers
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whether anything has come to our attention that causes us to believe that the 2023 Selected Indicators in the Sustainability Report 2023 (including the GHG statement) were not, in all material aspects, prepared in accordance with suitable
We performed the following procedures, among others:
Criteria.
• Inquiries of the relevant stakeholders for the Selected Indicators in the Sustainability Report 2022
on risk ofandmateriality
considerations, we performed our procedures to obtain sufficient and appropriate assur•Based
Inspection
relevant
documents
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We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
We performed the following procedures, among others:• Review the application of the OC Oerlikon reporting guidelines, the “about this report” section in the the SustainaConclusion
bility Report 2023 together with the suitable Criteria;
Based on the work we performed, nothing has come to our attention that causes us to believe that the Selected Indica•
and walkthroughswith(including
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for the 2023
Selected(including
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•

Inspection of process and control descriptions and other internal guidelines and relevant documents;•

Analytical procedures;•

Reperformance of relevant calculations (including the GHG statement);

2 OC Oerlikon Corporation AG | Independent practitioner's limited assurance report
2 OC Oerlikon Corporation AG, Pfäffikon | Independent practitioner's limited assurance report

SUSTAINABILITY REPORT 2023
06 Independent Assurance Report

Intended users and purpose of the reportThis
is prepared
for, and
only for,asthedeemed
Board ofDirectors(e.g.
of OC
Oerlikon,andsourcesolely tracing);
for the purposeof reporting to• report
Additional
assurance
procedures
necessary
samplebased
andthem on the Selected Indicators in the Sustainability Report 2022 (including the GHG statement) and no other purpose.
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our reportis shown
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come,andandappropriate
no other persons
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rely on our conclusion.
Conclusion
We permit the disclosure of our report, in full only and in combination with the suitable Criteria, to enable the Board of
Based on the work we performed, nothing has come to our attention that causes us to believe that the 2023 Selected
Directors to demonstrate that they have discharged their governance responsibilities by commissioning an independent
Indicators in the Sustainability Report 2023 (including the GHG statement ) of OC Oerlikon Corporation AG for the period
assurance report over the Selected Indicators in the Sustainability Report 2022 (including the GHG statement), without
ended 31 December 2023 are not, in all material respects, prepared in accordance with the suitable Criteria.
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 OC Oerlikon for our work or
this report.users and purpose of the report
IntendedThis report is prepared for, and only for, the Board of Directors of OC Oerlikon Corporation AG, and solely for the purPricewaterhouseCoopers AG
pose of reporting to them on the 2023 Selected Indicators in the Sustainability Report 2023 (including the GHG statement) and no other purpose. We do not, in giving our conclusion, accept or assume responsibility (legal or otherwise) or
accept liability for, or in connection with, any other purpose for which our report including the conclusion may be used, orto any other person to whom our report is shown or into whose hands it may come, and no other persons shall be entitled to rely on our conclusion.
We permit the disclosure of our report, in full only and in combination with the suitable Criteria, to enable the Board ofThierry Troesch
Christine
Blass
Directors
to demonstrate that they have discharged
their governanceresponsibilities by commissioning an independent
assurance report over the 2023 Selected Indicators in the Sustainability Report 2023 (including the GHG statement),
without assuming or accepting any responsibility or liability to any third parties on our part. To the fullest extent permitted
Zurich, 31 March 2023
by law, we do not accept or assume responsibility to anyone other than the Board of Directors of OC Oerlikon Corporation AG for our work or this report.

‘The maintenance and integrity of OC Oerlikon’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
PricewaterhouseCoopersAG
and integrity of the OC Oerlikon‘s
website, accordingly, the assurance providers accept no responsibility for any
changes that may have occurred to the reported Selected Indicators in the Sustainability Report 2022 (including
the GHG statement) or the Criteria since they were initially presented on the website.

Ralf Hofstetter

Remo Satta

Zürich, 20 February 2024

The maintenance and integrity of OC Oerlikon Corporation AG’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 themaintenance and integrity of the OC Oerlikon Corporation AG's website, accordingly, the assurance providers
accept no responsibility for any changes that may have occurred to the reported 2023 Selected Indicators in the
Sustainability Report 2023 (including the GHG statement) or the Criteria since they were initially presented on
the website.

3 OC Oerlikon Corporation AG | Independent practitioner's limited assurance report
3 OC Oerlikon Corporation AG, Pfäffikon | Independent practitioner's limited assurance report

101

102

SUSTAINABILITY REPORT 2023
06 Appendix

Appendix A – Oerlikon Sustainability Reporting Criteria
This section summarizes the basis of preparation for the performance indicators within this report,
presenting clarification and definition of the terminology used within the reported performance indicators.
A set of general definitions is first presented, as well as specific guidance in relation to each of thereported performance indicators, by section of the report.
General definitions
The Reporting Scope covers all Oerlikon Group companies worldwide, including wholly owned
subsidiaries and majority-owned joint ventures. In the Oerlikon Annual Report 2023, the list of legal
entities that are consolidated as part of the Group can be found on page 144 to 145. The scope ofreporting is further defined below.
Group Sites: Oerlikon operates from 207 (in 2023) sites globally, including 2023 acquisitions. Thesecomprise production sites, large offices (>50 employees) and small offices. The number of sites mayvary year-over-year due to newly opened sites, closed sites, divested sites or acquired sites.
“Relevant Sites”: Total relevant sites include all production sites and large offices and exclude small
offices (<50 employees). In 2023, there were a total of 171 relevant sites, including acquired sites.
The “Operational Sites”: Total operational sites include all relevant sites and a few small offices thatprovided data, as well as acquired sites. The total number of operational sites consolidated in 2023 forenvironmental KPIs was 172, including data from one small office. No data from minority-owned sites
was included in 2023. The total number of operational sites consolidated in 2023 for health & safety KPI
was 187, including data from the small office that provided environmental data and 15 additional small
offices. No data from minority-owned sites was included in 2023. The list of operational sites can befound in this report from pages 94 to 98.
The “Non-Operational Sites”: Oerlikon operates a few smaller sites that are not considered material
and thus, outside of the operational boundary for some KPIs. In 2023, there were 36 such small sites,of which 20 did not provide data and 16 provided data that was consolidated in the environment and/or
health & safety KPIs (see above).
In 2023, Oerlikon acquired Riri, who had 12 sites. Effective March 1, 2023, Oerlikon added these sites
to Oerlikon’s global footprint, seven of which are relevant sites. At the end of 2022, Oerlikon closed asite in Gwanju, Korea, which was excluded in the 2023 calculation.
Treatment of Material Adjustments
In circumstances that result in a significant change to a methodology and have a material impact to a
KPI result, either through refining the approach, receiving new information, a change in businessstructure, acquisition of transformational business, or from other events, Oerlikon would initiate arecalculation of previous year’s numbers or will calculate a new baseline.

SUSTAINABILITY REPORT 2023
06 Appendix

GRI no.
302-1(2016)KPI

Energy consumption within
the organization (gigawatthours – GWh)
Increasing the share ofelectrical energy fromrenewable sources

Assessment Criteria

Energy usage is defined as the total energy consumption from theOperational Sites during the calendar year. Energy categories include
electric power, natural gas / other hydro-carbon gases, heat and coolingbought, gasoline, diesel and liquefied petroleum gas. It is consistent withGRI 302-1. For 2023, it was 429.9 GWh.
The number of Operational Sites for this KPI was 172, including one small
office that provided data.
Within the category of electric power, the amount from renewable electrical
power was also disclosed (113.5 GWh or 35% of electricity consumed for2023). A target was set in 2021 that 100% of purchased electricity shall befrom renewable sources by 2030.
In 2019 and 2020, electricity generated from combined heat and power plant(CHP plant) was recorded as electricity. For 2021 onwards, this wasreclassified as energy from natural gas. This resulted in a higher figure fornatural gas and a lower amount from electricity and heat and cooling bought
in 2021, which is the calculation method used since 2021.

302-3(2016)

Energy intensity (MWh/million CHF sales)

Energy intensity is calculated by taking the energy consumption (GRI 302-1)
and dividing by Group sales for 2023.
The 2023 sales figure of CHF 2 693 million was taken from the consolidated
income statement of OC Oerlikon Management AG, Pfäffikon, which was
audited by PricewaterhouseCoopers AG on February 20, 2024.
Thus, energy intensity in 2023 was 159.6 MWh per million CHF sales.

305-1(2016)

Scope 1: Direct (Scope 1)
GHG emissions (thousand
metric tons)

Oerlikon reports Scope 1 figures relating to Operational Sites using the GHG
protocols consistent with GRI 305-1.
The number of Operational Sites for this KPI was 172, including one small
office that provided data.
Oerlikon uses no equivalent gases (CH4, N2O, HFCs, PFCs, SF6, NF3), so
the 2023 figure of 18.9 thousand metric tons resulted solely from use ofenergy.

305-2(2016)

Scope 2: Energy indirect(Scope 2) GHG emissions(thousand metric tons of
CO2 equivalent)

Oerlikon reports Scope 2 figures for Operational Sites. The number ofOperational Sites in 2023 for this KPI was 172, including one small officethat provided data.
Consistent with GRI 305-2 and the GHG protocols, Oerlikon reports themarket-based figure where possible. In geographies where this is notpossible, Oerlikon takes a location-based approach. Among Oerlikon’s 172
Operational Sites in 2023, 83 of them were using market-based method toreport on their Scope 2 emissions, while 89 sites were using the locationbased method as they do not have contractual information that meets the
Scope 2 quality criteria.
Our Scope 2 encompasses indirect GHG emissions from electricity, steam,heat and cooling purchased by the Group. In 2023, our Scope 2 emissions
were 126.1 kilotons of CO2 equivalent.

103

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SUSTAINABILITY REPORT 2023
06 Appendix

GRI no.
305-4(2016)KPI

GHG emissions intensity(tons CO2 equivalents/million
CHF)

Assessment Criteria

GRI 305-1 and GRI 305-2 are totaled and then divided by Group sales.
The 2023 sales figure of CHF 2 693 million was taken from the consolidated
income statement of OC Oerlikon Management AG, Pfäffikon, which was
audited by PricewaterhouseCoopers AG on February 20, 2024.
Thus, total emissions from scope 1 & 2 in 2023 were 145.0 tons CO2
equivalents, corresponding to an intensity of 53.8 tons CO2 equivalents
per million CHF sales.

306-3(2020)

Waste generated (metrictons)

The number of Operational Sites for this KPI was 172, including one small
office that provided data.
Data collected in tons is consistent with GRI 306-3, and the total waste for2023 was 22 974 metric tons.

306-4(2020)

Waste diverted from
disposal (metric tons)

The number of Operational Sites for this KPI was 172, including one small
office that provided data.
Data from GRI 306-3 is segmented into waste diverted form disposal (GRI
306-4) across preparation for reuse, recycling and other recovery operations.
Consistent with GRI 306-4, waste diverted in 2023 was 16 668 tons.

306-5(2020)

403-1-9(2018)

Waste directed to disposal(metric tons): Share of
disposed waste

Occupational health andsafety: injuries, lost days,
diseases and fatalities:
Rate of recordable workrelated injuries (TAFR:
Total accident frequencyrate)

The number of Operational Sites for this KPI was 172, including one small
office that provided data.
Data from GRI 306-3 is segmented into waste directed to disposal(GRI 306-4) across incineration, landfill and other disposal operations. The
data from GRI 306-5 (in 2023: 6 306 tons) was then divided by the data fromGRI 306-3 (in 2023: 22 974 tons) to give 27%.
Data covers Operational Sites. Health & Safety data included 16 small
offices that have provided the data.
Total accident frequency rate was 0.72 in the period from January 1, 2023,
to December 31, 2023.
The total accident frequency rate included the 2023 acquisitions (Riri).
The formula for calculating accident frequency rate is the number of reported
accidents multiplied by 200 000, divided by the number of employee hours
worked.
Recordable work-related injuries defined as lost time accidents (LTAs) andmedical treatment accidents (MTAs). LTAs are work-related accidents
causing the absence of one or more working days (or scheduled shifts),
counting from the day after the injury took place. MTAs are work-related
accident, necessitating the attention of a medically qualified person, such asa medical doctor or a nurse, but not causing an absence.
Total number of hours are usually calculated as recorded hours for blue
collar workers and workers that fill out time sheets and contractual hours forwhite collar hours who do not fill-out timesheets.

SUSTAINABILITY REPORT 2023
06 Appendix

GRI no.
405-1(2016)

KPI

Percentage of women in
management andleadership positions

Assessment Criteria

Oerlikon defines management and leadership positions to include the top,senior and middle management positions. This is reflected by including
those employees classified as grade 13 or above on the last date of acalendar year.
Employee headcount is used to define the number.
Those employees categorized as women in Oerlikon’s HR system weredivided by the total amount.
In 2023, 97 women were classified in management and leadership
positions, representing 14% of the total.

405-1(2016)

Percentage of women inHigh Potential Talent
Programs

Oerlikon runs several high potential talent programs of which Horizons andOMF+ were active for years. In 2022, Oerlikon launched a third program,
RISE, to promote regional talents. Talent programs can last more than one
calendar year, so the total number of individuals included represents those
who participated at any point during the calendar year.
Numbers included in the program are counted on a per person basis.
Those employees categorized as women in Oerlikon’s HR system will be
divided by the total amount.
In 2023, 25 women participated in high potential talent programs,
representing 22% of the total.

n.a.

Sites with energy
management system
implemented

Energy management systems (EnMS) include both ISO-50001-certified andOerlikon-defined energy management systems.
An EnMS allows us to address our energy impact, conserve resources andimprove cost through efficient energy management. It is designed as apractical way for our sites to track, monitor and analyze their energy
consumption, so as to identify and implement improvement measures.
The Oerlikon-defined EnMS is a stringent but lighter version of thestandards, closely mirroring ISO 50001. The definition of this system is
documented in an internal guideline endorsed by management to regulate
non-ISO sites.
Total sites as of December 31, 2023, with EnMS according to:• Oerlikon-defined standard = 70
• ISO 50001 = 20
The total number of sites used as the denominator for this calculation is
Operational Sites. The number of Operational Sites for this KPI is 172.
Total sites that meet these criteria are 90 (out of 172), or 52% of total
Operational Sites.

105

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SUSTAINABILITY REPORT 2023
06 Glossary

GLOSSARY
GeneralDEI

DEI stands for diversity, equity and inclusion. Diversity is the presence of differences within a given setting. Equity is the process of
ensuring that processes and programs are impartial, fair and provide equal possible outcomes for every individual. Inclusion is thepractice of ensuring that people feel a sense of belonging in the workplace.

3TG

The term Conflict Minerals describes 4 elements – Tin, Tantalum, Tungsten and Gold, and is commonly referred to as 3TG.

DDTrO

The “Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour”
was issued by the Swiss Federal Council and is applicable to companies whose seat, head office or principal place of business islocated in Switzerland.

EcoVadis

EcoVadis provides a non-financial web-based rating platform, enabling organizations to assess their own Corporate Social Responsibility(CSR) performance, as well as that of their supply chain.

EqualVoiceAn initiative launched by the Swiss publishing company Ringier, with the aim to advocate gender equality and improve the visibility ofwomen in the media.

ESG

ESG (Environmental, social and governance) criteria are of increasing interest to companies, their investors and other stakeholders.

F-gases

Fluorinated gases (‘F-gases’) are a family of man-made gases used in a range of industrial applications.

FRC

Fiber-reinforced composites; Materials made by combining fibers, such as carbon or glass, with a matrix material, typically a polymer, toenhance strength and stiffness. Their high strength-to-weight ratio and enhanced mechanical properties make FRCs an ideal material foruse in aerospace, automotive, and construction industries.

FTE

Full time equivalent; indicates the workload of an employed person. An FTE of 1.0 is equivalent to a full-time worker.

Gender Diversity

Gender diversity is an umbrella term that is used to describe gender identities that demonstrate a diversity of expression beyond thebinary framework.

GHG

A greenhouse gas (GHG or GhG) is a gas that absorbs and emits radiant energy within the thermal infrared range, causing thegreenhouse effect.

Global Organic Textile
Standard (GOTS)

The Global Organic Textile Standard ensures textiles are made from organic fibers and adhere to stringent environmental and social
criteria throughout their production. GOTS certification covers every step of the supply chain, from the harvesting of raw materials toenvironmentally and socially responsible manufacturing, aiming to provide a credible assurance to the end consumer.

Global Recycled Standard(GRS)

The Global Recycled Standard defines specific rules for certifying the amount of recycled material in a product, how it’s handled throughthe production process, and the social, environmental, and chemical use practices involved in its creation. It aims to encourage moresustainable production and consumption by ensuring that products labeled as “recycled” meet consistent criteria and support claims
through credible certification.

GRI

The Global Reporting Initiative is an international independent standards organization that helps businesses, governments and otherorganizations understand and communicate their impacts on issues such as climate change, human rights and corruption.

HSE

Health, Safety and Environment; A core component of Oerlikon’s code of conduct, with the ambition of “Zero Harm to People,” including
employees, contractors, visitors and the communities in which Oerlikon operates.

HVV

The Higher Heating Value (HVV) describes the total amount of heat energy that can be generated when a fuel is completely burned. It
includes the heat released from both the fuel itself and the latent heat of vaporization of water, which is formed during the combustion
process.

LED

A light-emitting diode (LED) is a semiconductor light source that emits light when current flows through it

PET

Polyethylene terephthalate, the most common thermoplastic polymer resin of the polyester family and is used in fibres for clothing,containers for liquids and foods, and thermoforming for manufacturing, and in combination with glass fibre for engineering resins.

PEM

Polymer Electrolyte Membrane; A semipermeable membrane generally made from ion-conducting polymers. It is a key component invarious electrochemical applications, notably in PEM fuel cells, where it allows protons to pass through while blocking electrons, thus
facilitating the electrochemical reaction that generates electricity.

R-PET

R-PET stands for recycled polyethylene terephthalate (PET). It is a food-safe raw material made from empty PET packaging that has
been collected and prepared for recycling.

REACH

The EU Regulation for Registration, Evaluation, Authorization and Restriction of chemicals (REACH, EU Regulation 1907/2006/EG) aims
to manage the risks that chemicals can pose to human health and the environment throughout the EU. REACH places a duty on
companies which produce or import chemicals (as defined in the legislation) into the EU and to take appropriate measures to manage
any identified risks.

RTO

Regenerative Thermal Oxidizer; An industrial device used for treating exhaust air to reduce harmful emissions. It works by using hightemperatures to oxidize these pollutants, and utilizes a heat recovery system to improve energy efficiency.

RO

Reverse Osmosis; A water purification process that removes contaminants from water by pushing it through a semi-permeable
membrane. This method allows only water molecules to pass through, effectively filtering out impurities and providing clean water forvarious uses.

RoHS

The EU Restriction of Hazardous Substances (RoHS) restricts the use of hazardous substances in electrical and electronic equipment toprotect the environment and public health.

SASB

Sustainability Accounting Standards Board; An independent, private-sector standards organization that develops and disseminates
industry-specific sustainability accounting standards to help publicly listed companies disclose material, decision-useful information toinvestors.

Scope 1, 2 and 3

Scope 1, 2 and 3 emissions are greenhouse gas emissions that cause carbon footprints. Scope 1 covers direct emissions from owned
or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling
consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company’s value chain.

SDG

The United Nations Sustainable Development Goals (UN SDGs, also known as the Global Goals) are 17 goals with 169 targets that all
UN Member States have agreed to work towards achieving by the year 2030. They set out a vision for a world free from poverty, hunger
and disease.

SOEC

Solid Oxide Electrolyzer Cells can produce hydrogen gas from water. They operate at high temperatures and use solid ceramic materialas the electrolyte.

SOFC

Solid Oxide Fuel Cell; An electrochemical conversion device that produces electricity directly from oxidizing a fuel. Fuel cells arecharacterized by their electrolyte material; the SOFC has a solid oxide or ceramic electrolyte.

TAFR

Total Accident Frequency RateSUSTAINABILITY REPORT 2023
06 Glossary

TCFD

Task Force on Climate-related Financial Disclosures; An initiative that develops guidelines for companies to report on the financial
impacts of climate-related risks and opportunities. The Ordinance on Climate Disclosures issued by the Swiss Federal Council
incorporates the TCFD recommendations, mandating enhanced transparency in financial reporting to better inform stakeholders aboutclimate-related risks in the financial sector.

VOC

Volatile Organic Compounds; Chemicals that vaporize at room temperature and are commonly found in the air as pollutants. They
originate from various sources including industrial processes, vehicle emissions, and household products, and are known for contributing to air pollution and health issues such as respiratory problems.

OerlikonBALINIT CROMA PLUS

Coating solution for plastics processing, even for large components. Ideal coatings for PVC window frame and plastic extrusion, and forrubber processing.

BALIQ TISINOS PROBALIQ TISINOS PRO is a AlTiSiN coating, especially suitable for micro cutting tools, based on the advanced S3p technology. Its
increased toughness and wear resistance make it the coating of choice for hard machining up to HRC 70.

DTY

Drawn Textured Yarn is a type of polyester filament yarn produced by processing partially oriented yarn (POY) through a texturing
process. This process disperses, curls and entangles the filaments composing the POY yarn, which gives DTY a fluffy appearance andgives it the properties of both natural and synthetic fiber.

eAFK Evo

3- and 4-deck texturing solution launched by Oerlikon Barmag.

EnMS

ISO-50001-certified or Oerlikon defined Energy Management System (EnMS).

EvoSteam

A new polyester staple fiber process EvoSteam from Oerlikon Neumag. The process dispenses with liquid baths, thus generating
significant savings in terms of water, energy and finishes.

FDY

Fully Drawn Yarn is a type of highly drawn polyester filament yarn that can be used to produce high strength fabrics and textiles. FDY istypically used to produce fabrics and textiles for high-end undergarments, high-end sportswear and home furnishings.

MULTIPLA

A new a new modular fixture by Oerlikon Balzers, specifically designed for recoating drill heads and mill tips, enhances material andenergy savings.

POY

Partially oriented yarn is produced from the melt of the continuous polycondensation or by extrusion of polyester chips or flakes (meltspinning).

PVD

Physical vapor deposition (PVD) is a technique for creating very thin (few thousandths of a millimeter) coatings that are extremely hard.
These coatings improve the performance and durability of precision components in almost any industrial and consumer good, and also
the life of tools for the metal and plastics processing industries.

S3p

Scalable pulsed power plasma technology is Oerlikon’s proprietary technology and the only one that combines the advantages of arc
evaporation and sputtering (HiPIMS) to enable smooth and very high coating density and hardness as well as excellent adhesion to theunderlying surfaces.

WINGS

Winding Integrated Godet Solution is a family of winder technology by Oerlikon Barmag.

107

Disclaimer and cautionary statements
OC Oerlikon Corporation AG, Pfäffikon together with its affiliates, hereinafter referred to as “Oerlikon”, has made great efforts toinclude accurate and up-to-date information in this document. However, Oerlikon makes no representation or warranties, expressedor implied, as to the truth, accuracy or completeness of the information provided in this document. Neither Oerlikon nor any of its
directors, officers, employees or advisors, nor any other person connected or otherwise associated with Oerlikon, shall have any
liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document.
The contents of this document, including all statements made therein, are based on estimates, assumptions and other information
currently available to the management of Oerlikon. This document contains certain statements related to the future businessand financial performance or future events involving Oerlikon that may constitute forward-looking statements. The forward-looking
statements contained herein could be substantially impacted by risks, influences and other factors, many of which are notforeseeable at present and/or are beyond Oerlikon’s control, so that the actual results, including Oerlikon’s financial results andoperational results, may vary materially from and differ from those, expressly or implicitly, provided in the forward-looking statements,
be they anticipated, expected or projected. Oerlikon does not give any assurance, representation or warranty, expressed or implied,that such forward-looking statements will be realized. Oerlikon is under no obligation to, and explicitly disclaims any obligation to,
update or otherwise review its forward-looking statements, whether as a result of new information, future events or otherwise.
This document, including any and all information contained therein, is not intended as, and may not be construed as, an offer orsolicitation by Oerlikon for the purchase or disposal of, trading or any transaction in any Oerlikon securities. Investors must not relyon this information for investment decisions and are solely responsible for forming their own investment decisions.