Rümlang/Switzerland, 17 November 2020

UN Global Compact – Communication on Progress (COP)
Financial Year 2019/20
This Communication on Progress (COP) is the fifth such report for dormakaba, the first having been publishedafter the merger of the former Kaba Group and the former Dorma Group for the financial year 2015/16. The
former Kaba Group joined as a participant in the UN Global Compact in 2013.

CEO Statement
To our Stakeholders:With Covid-19, we are facing a global pandemic that has major negative impact on people and theirlivelihoods, disrupting supply chains, accentuating potential inequalities and putting progress on the UN
Sustainable Development Goals in question. From the beginning of the Covid-19 outbreak, our focus has beenon ensuring the health and safety of our employees while at the same time making sure that the impact on
business operations and the supply chain is managed and limited as much as possible. This pandemic
illustrates how important sustainability factors like health at workplaces are for our company and ourcommunities.
At the same time, we continue to face a global climate challenge with severe impacts for people and all thenatural systems that sustain us. In the face of these interconnected challenges, we cannot afford to tackle oneor the other. Human health depends on planetary health. We can – and must – tackle both. And as dormakaba
is setting corporate emission reduction targets in line with climate science through the Science Based Targets
initiative, we remain committed to do our part to achieve a resilient, zero-carbon economy.
We must also acknowledge that sustainability cuts across a variety of topics, business functions, andgeographies, which brings its challenges. In order to succeed, we need everyone to contribute in their own
way, and we need a strong governance system behind it. To acknowledge this, we have developed andbrought into force a Sustainability Charter in the financial year 2019/20, which strengthens the sustainability
governance within our company and clearly outlines the responsibilities and contributions expected from alllevels of the business, including of the Board of Directors.
In alignment with our efforts in sustainable development, we are pleased to reconfirm our commitment andsupport of the Ten Principles of the United Nations Global Compact. In this annual Communication on
Progress, we describe our actions to continually improve the integration of the Global Compact and its
principles into our business strategy, culture and daily operations.
We actively report on our sustainability progress, through for example an annual Sustainability Report aligned
to the Global Reporting Initiative Standards and through this Communication on Progress. We also commit toshare this information with our stakeholders using our primary channels of communication.
Sincerely yours,

Riet Cadonau,
Chairman and Chief Executive Officer, dormakaba Groupdormakaba Holding AG | Hofwisenstrasse 24 | 8153 Rümlang | Switzerland | T +41 44 818 90 11 | F +41 44 818 90 18 | www.dormakaba.com

Page 2 / 6
UN Global Compact - COP 2019/20

Human Rights Principles
Principles
Principle 1:
Businesses

Disclosures•

should supportand respect theprotection ofinternationally•proclaimed
human rights••

Principle 2:•

make sure thatthey are notcomplicit inhuman rights•

abuses•

Sourcedormakaba acknowledges our responsibility to respect human rights as outlined in
the UN Guiding Principles on Business and Human Rights (UNGPs) as well as in theAustralian Modern Slavery Act 2018 and the UK Modern Slavery Act 2015. Acting inalignment with the local laws and regulations remains the unquestioned basis of
dormakaba’s day-to-day business.
The dormakaba Code of Conduct (CoC) contains standards and rules on humanrights, bribery and corruption, equal employment opportunities, workplaceharassment, conflicts of interest, antitrust and competition law and procedures forreporting misconduct.
dormakaba has also set forward our Supplier Code of Conduct (SCoC) which
includes three main sections of specific bearing, namely human rights, fair labor
conditions and the suppliers’ own procurement practices. The dormakaba SCoC is
integrated in the company’s online bidding system. It is further included as part of
new standard contracts.
Our human rights commitment was published in the financial year 2019/20 in theform of the dormakaba Statement of Commitment on Human Rights. It waselaborated based on a gap assessment, stakeholder consultations and the salientissues identified. As part of our Human Rights Roadmap, dormakaba sought tobetter understand migrant workers’ risks and vulnerability in the financial year
2019/20. We carried out a survey to examine where we employ migrant workers,
what type of work they were doing, which countries they came from and whether
recruitment agencies were used in the recruitment process. This assessment laid
the foundation for scoping a human rights impact assessment which is being carriedout in the financial year 2020/21.

 Modern
SlaveryStatement
2019/20

Senior managers and the general managers of local companies are responsible for
implementation and enforcement of the Code of Conduct (CoC) and are trained indealing with the CoC. The Compliance Officer within the Legal Department monitorsthese processes and, alongside line managers, is one of the defined contacts forreporting infringements of the CoC.
In the financial year 2019/20, we made significant progress in our suppliersustainability engagement strategy which includes human rights criteria in three key
areas:oScaling up supplier off-site assessments in collaboration with EcoVadiso
Development of procedures in case of non-participation or noncomplianceoTraining of procurement employees on sustainability and the processes
related to off-site assessments.
In the area of Human Rights Due Diligence, dormakaba focused on the following
areas in the financial year 2019/20:

 Code ofConductoooCommunicating our policy commitment
Assessing potential impacts through the migrant worker’s risk assessment
Evaluating the dormakaba whistleblowing system and tool for conformity

 Code ofConduct

 Supplier
Code of
Conduct
 SR 2019/20
Human Rights

 SR 2019/20
Supplier Social
andEnvironmental
Assessment

 SR 2019/20
Human Rights

to the effectiveness criteria for grievance mechanisms from the UNGPs

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

Page 3 / 6
UN Global Compact - COP 2019/20

Labor Principles
Principle 3:•dormakaba respects the rights of all our employees in respect of freedom of
association and collective bargaining. Collective bargaining agreements aremanaged in accordance with the respective local regulations and differ within thevarious dormakaba units. Approximately 64% of the employees in the scope of thesustainability reporting 2019/20 were unionized or covered by collective bargaining
agreements.

 SR 2019/20
Freedom of
Association
and Collective
Bargaining•

dormakaba’s values and our Codes of Conduct condemn all forms of forced andcompulsory labor as well as child labor. The full dormakaba Modern Slavery
Statement 2019/20 is available on our website.
Regarding the minimum employment age, we follow the principles of the UN Global
Compact and the conventions of the International Labor Organization (ILO).
The topics of forced or compulsory labor and child labor are also included in thedormakaba supplier sustainability engagement program and have been identified assalient issues in the company’s human rights due diligence process. The potential
impact on these issues exists primarily in the upstream value chain and not indormakaba operations. These topics are therefore included in the frame of thecompany’s human rights roadmap with planned activities to increase value chaintransparency.

 Modern
SlaveryStatement
2019/20

dormakaba is committed to fostering a diverse and inclusive workforce that reflects
the varied markets in which it operates. The Group-wide Code of Conduct (CoC)
defines the principles of collaboration, which are binding for all employees. This
includes the declared aim of dormakaba to avoid discrimination for reasons of age,gender, race or color of skin, nationality, social or ethnic origin, language, sexual
orientation, marital status, religion, state of health or disability or any other legally
protected status under local law.
All potential complaints can be addressed with the supervisor, the supervisor’s
manager, a member of the Executive Committee, Segment HR, Group HR or theCompliance Officer, who investigate them promptly and discreetly. Employees will
not suffer adverse consequences as a result of reporting in good faith any act of
discrimination or harassment.
Compliance to various regulations such as the obligatory gender pay reporting inAustralia and the UK, and the US Employer Information Report to the Equal
Employment Opportunity Commission is ensured at a local level.
On a global level, the Group Directive Compensation, approved by theCompensation Committee of the Board of Directors, establishes fair compensation;
determination is based on the job function and relevant local market benchmarks. It
is not influenced by personal attributes such as age, nationality or gender. The
global grading system ensures that functions are evaluated in a consistent manner
across the organization.
Examples of activities fostering diversity and equal opportunity in the financial year
2019/20 included, among others:o
In Taiwan, the Access Solutions (AS) APAC segment has invested in
improving the living conditions and safety standards of the foreign
workers’ dormitory, as part of a renovation to make the facility more
earthquake resilient. The renovations to the dormitory included a 25-point
environment and safety assessment by an external agency. Foreign
workers were included in the renovation plans and were able to give
feedback to their needs, which resulted in additional electrical systems
being installed.
o
In Germany, AS DACH has continued to support the #moveforward
campaign to raise awareness of accessibility barriers in public and private
spaces and to confront inaccessibility as a form of discrimination. Morethan 200 people with disabilities are employed in Germany.

 Code ofConduct

Businesses
should upholdthe freedom of
association andthe effective
recognition of theright to collective
bargaining
Principle 4:
the elimination of
all forms offorced andcompulsory labor••

Principle 5:
the effective
abolition of child Code ofConduct
 Supplier
Code of
ConductlaborPrinciple 6:•

the elimination of
discrimination in
respect of
employment andoccupation

•

•
•

•

 SR 2019/20
Employment

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

Page 4 / 6
UN Global Compact - COP 2019/20

o

AS EMEA has launched a gender diversity program, with the aim topromote more women from within the own ranks, especially in commercial
and general management positions. An internal survey assessing thecurrent status of gender diversity showed that there are a number of
unconscious biases prevalent in various areas of the business that should
be addressed. A series of interventions to start addressing the diversity
challenges is now being developed, including a review of recruitment
processes to remove gender biases in job ads and interviews, increased
focus on female talents in career progression and development, actions tostrengthen the self-affirmation of our female talents, a Workplace Allies
scheme, and female peer networks, conferences and events.

Environmental Principles
Principle 7:•

Businesses
should support aprecautionary
approach to•environmental
challenges•

Principle 8:•

undertakeinitiatives topromote greater
environmental
responsibility
•

•

•

•

The potentially greatest environmental risks lie in the processes used forelectroplating and surface finishing, painting, melting as well as zinc and aluminum
die casting. These processes are used at 29 of the 102 locations covered in the SR
2019/20. dormakaba’s environmental management places emphasis on these four
processes.
The Group Manufacturing Directive includes expectations on achieving international
standards for environmental management, energy, and health and safety, andspecifically for any locations carrying out the above-mentioned processes. Based onan overview of dormakaba’s sites including plants, regional logistic centers, local
assembly and distribution centers and service hubs, the Directive sets a framework
for expanding the coverage of sites maintaining such management systems.
Certifications are required for some sites based on a priority listing depending onsize, resource consumption and environmental risks.
Today, 36% of manufacturing sites already benefit from environmental standards set
forth by ISO 14001 (or similar) certification. We aim to increase this total to over 50%
by the end of the financial year 2020/21 (baseline financial year 2017/18). In thefinancial year 2019/20, our manufacturing facilities in Senai (Malaysia), Westerstede(Germany) and in Taiwan, for example, became ISO 14001 certified and handle
environmental issues according to the international standard.

 SR 2019/20

Electricity and fuel usage play a crucial role in dormakaba’s operations due to theprocesses involved. Many of the components used in our end-products are
manufactured in-house, in addition to further processing of bought-in parts. Some of
the commodities such as nickel silver are also produced on site, which adds toenergy demand. The total energy consumption was over 247,000 MWh in the
2019/20 financial year. Electricity and fuels for heating or manufacturing both play a
crucial role in production processes, constituting nearly 80% of total energy
consumption. The remainder is associated with the fuel consumption of our vehicle
fleet.
In the financial year 2019/20, our total greenhouse gas emissions (GHG) amounted
to nearly 73,000 tCO2e. Around 60% were emitted as a consequence of electricity
consumption, followed by heating and vehicle fuel consumption, and volatile as wellas process gas emissions. As part of our commitment to the Science Based Targets
initiative, we carried out a screening and carbon inventory development of Scope 3
emissions. The screening showed that the largest sources of Scope 3 emissions
stem from purchased goods and services (75%) and use phase of sold products(11%). We also learned that Scope 3 emissions constituted around 90% of our
combined Scope 1, 2 and 3 carbon emissions, highlighting the importance of Scope
3 emissions on our climate strategy.
Climate-related initiatives implemented during the reporting year resulted in total
annual savings of approximately 16,400 tCO2e (over 20% of our total footprint).
Therein, we worked diligently to source renewable electricity wherever feasible,
leading to an emissions avoidance of approximately 14,100 tCO2e. 37% of theelectricity that dormakaba consumed came from renewable sources.
In the financial year 2019/20, energy saving initiatives were being implemented atvarious sites in the reporting coverage. This work included retrofitting facilities to
LED lighting systems; upgrading equipment such as air compressors, as well as
milling and key biting machines; the optimization of heating and cooling systems(installation of air curtains, heat recovery, and the renewal of circulation pumps,
radiators and valves).
Most of the water consumed by dormakaba’s operations is drawn from municipal
water supplies and is primarily used for cooling, manufacturing processes (e.g.

 SR 2019/20

Environmental
Management

Environmental
Management

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

Page 5 / 6
UN Global Compact - COP 2019/20•

Principle 9:•In the 2019/20 financial year, dormakaba was not subject to incidents of noncompliance with environmental laws and regulations.

•dormakaba proactively strives to mitigate environmental impacts of our products,
solutions and services. Green Building certification schemes such as Leadership in
Energy and Environmental Design (LEED) or the German Sustainable Building
Council (Deutsche Gesellschaft für Nachhaltiges Bauen, DGNB) rate thesustainability of an entire building. At dormakaba, quantified disclosures of a
product’s environmental impacts through our entire lifecycle are described according
to international standards in the form of Environmental Product Declarations (EPD).
In the financial year 2019/20, we published 13 EPDs, including for the full productlines of the room-partitioning systems of our Skyfold (3) and Modernfold (7) brands(Segment Key & Wall Solutions). EPDs were also published for the TS 98 XEA door
closer, its accessories and the Argus sensor barriers. Our further aim to renew the
EPD for the TS 93 was also achieved.
dormakaba offers various health-related product declarations which transparently
account for the materials found in our products. These are in the form of HPDs,
Building Product Declarations (BPDs) or Declare Labels, depending on local market
requirements.
In the financial year 2019/20, dormakaba updated 30 HPDs to the latest version of
the standard (2.1.1). Additionally, we published new BPDs for four door hardware
products. Overall, we have published BPDs for 24 global products.
This contributes to achieving the dormakaba sustainability target of having EPDs
and/or HPDs for products representing 30% of total turnover by 2021. Currently 19%
of our products based on sales volumes are covered by EPDs and/or HPDs.

encourage thedevelopment anddiffusion ofenvironmentallyfriendlyelectroplating) and sanitation. Waste water is discharged in compliance with thelocal requirements and is treated by specialized third party companies where
necessary. Some examples of water saving initiatives in the financial year 2019/20
included: replacement of rusted underground water pipes in the manufacturing
facility in Taishan (China), saving 3,500 m3 of water per year. Installation of waterreuse processes in Taiwan, thereby reusing 1,220 m3 of grey water, and theinstallation of drip irrigation to water the gardens in Chennai (India), reducing around
10% of overall water consumption.
An inherent aspect of dormakaba’s production processes is the generation ofdifferent wastes. For each waste type, a specific treatment method is applied.
Approximately 68% of the waste stream is recycled, reused or recovered (including
raw materials and energy recovery).

•technologies•••

 SR 2019/20
Product-related
Energy,Emissions,Effluents &Waste
 SR 2019/20
Materials

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

Page 6 / 6
UN Global Compact - COP 2019/20

Anti-Corruption Principles
Principle 10:•

Businesses
should work
against corruption•

in all its forms,
includingextortion andbribery

•

•

•

•

•

dormakaba believes in a system of competitive free enterprise. The company iscommitted to conducting itself in accordance with all applicable anticorruption,
antitrust and competition laws, and with the dormakaba specific ethical standards
with respect to corruption and bribery [B1, B2]*.
In addition, Group Internal Audit integrates the Corruption Perceptions Index (CPI)
as one criteria for developing their internal audit plan [B6]. Corruption risks are also
addressed in dormakaba’s risk model as part of the company’s global risk
management process, conducted every six months. The dormakaba Supplier Codeof Conduct additionally addresses the topic of corruption and bribery and sets
expectations of compliance to business partners [B3].
The dormakaba Code of Conduct (CoC) contains standards and rules regarding
bribery and corruption. The CoC is fully supported by the Board of Directors and the
Executive Committee and forms an integral part of the dormakaba management
system [B4].
The CoC is available to all employees of the dormakaba Group in various
languages and in electronic and printed form. When employees join the company,
they confirm in writing that they have received and acknowledge the documents. In
addition, all CoC training options (e-learning and live trainings) have a focus on anticorruption, including how to deal with conflicts of interest, how to seek approval forbenefits, etc. [B5].
The CoC further specifies how employees should manage conflicts of interest as
well as donations and sponsoring. Possible conflicts of interest must be reported tothe supervisor, Human Resources or Group Compliance. The situation must be
resolved in the best interest of the organization based on consultation between theemployee and the supervisor as well as Human Resources. The consultation must
be documented and related summary minutes provided to Group Compliance [B6].
dormakaba implemented an integrity line (whistleblowing tool) in the financial year
2018/19, allowing dormakaba employees and third parties (e.g. customers or
suppliers) to submit notifications about potential violations of laws and threats to our
reputation. The dormakaba whistleblowing tool is available globally 24/7 and isoffered in various languages. Through all reporting channels, including thewhistleblowing tool, 19 incidents have been reported and thereafter investigated in
the financial year 2019/20. This is twice as many as the previous financial year.
Whistleblowers using the online tool receive a first response within 2–3 days andare provided with regular updates on their case, if a postbox allowing anonymous
communication has been set up. In around 75% of incidents reported, misconduct
was confirmed, and appropriate corrective action has been taken.
Due to the relevance of corruption and bribery, a directive that governs these issues
was developed in the financial year 2019/20. The Group Directive Anti-Corruption
and and the accompanying anti-corruption training initiative will roll out in thefinancial year 2020/21. [B7].

 Code ofConduct

 SR 2019/20
Fair
competition &Anti-corruption*all Indicators in [ ] refer to Basic Reporting Elements according to the Reporting Guidance on the 10th Principle.
SR = dormakaba Sustainability Report 2019/20. The dormakaba Sustainability Report covers the period from 1 July
2019 to 30 June 2020, in line with the financial year 2019/20.

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