dormakaba

Sustainability Report 2021/22

2

dormakaba

Sustainability Report 2021/22

Introduction
We started the new strategic cycle with an even stronger
sustainability organization, more than 30 ESG targets to focus on
and with the development of over 200 initiatives to achieve them.
2021/22 in brief
With this financial year, we stepped into a new five-year sustainability strategic cycle. As astart, we have launched an industry-leading framework with more than 30 ambitious
targets. Sustainability has also been embedded at the core of our corporate strategy andvision, which clearly shows its importance for dormakaba. Furthermore, we havestrengthened our sustainability governance by simplifying the structure and setting up fourExpert Groups, which play a key role in achieving our targets. The Expert Groups havestarted the development of more than 200 initiatives worldwide and have already achieved
some important milestones. Key highlights include:• 17,400 tCO 2 e saved through energy efficiency projects and green electricity
purchases• 46.4% of electricity purchased from renewable sources• On-site solar energy generation increased by 10%• 67% of our sites have an energy management system in place• 117 high-risk suppliers were assessed in our Supplier Sustainability Engagement
Program• More than 700 suppliers provided Conflict Minerals Reports• 200 sustainability-related product declarations and certifications are available• 20% of our managers are female• 12,429 employees completed at least one eLearning module• 87% of our employees are covered by a health and safety management system• Three Group-wide directives published: the Environment, Responsible Labor, and Zero
Recruitment Fees Directives

Introduction

3

dormakaba

Sustainability Report 2021/22

Introduction

Letter from the CEO
Dear Stakeholders,This is the first time that I am introducing the dormakaba Sustainability Report as the CEOof the company. And I am doing it with confidence, knowing that we are on the right track
to contribute to a more sustainable industry and to strengthen our leading position in thisarea.
It has been half a year since we launched our new corporate strategy, Shape4Growth, andsince then we have been passionately working towards our vision to become “the trusted
partner worldwide for safe, secure, and sustainable places where people can moveseamlessly”. We keep emphasizing that sustainability is core to our future, to the building
industry and thus to our business model.
Therefore, we have embedded sustainability in Shape4Growth as an important element ofour customer centricity pillar, in recognition of the increasing demand for environmentallyfriendly products in the green building industry. For example, we have launched the ST PRO
Green RC3 in the Austrian and Swiss markets. The product is a new, energy-saving
automatic sliding door with a thermally separated profile system that reduces energy loss
in the building due to a very low heat transfer coefficient. This is the first dormakaba
product aligned with the EU Taxonomy climate change mitigation objectives, which is theclassification system established to clarify which investments are environmentally
sustainable, in the context of the European Green Deal.
Sustainability is also engrained in how we run our business. To walk the talk, we havestarted the implementation of three Group-wide directives that set minimum business
requirements for environmental management and fair labor conditions in line withinternational standards.
Furthermore, our new sustainability framework and ESG targets have led to stronger
collaboration, engagement, and accountability across many of our global functions, fromHR to operations, product development and procurement. Four Expert Groups within the
Global Sustainability Working Group, with a membership of more than 50 colleagues, aredeveloping around 200 initiatives worldwide to achieve our ESG targets. We have madeprogress towards several of these targets and reached important milestones during theperiod under review.
For example, we achieved a 2.4% year-on-year reduction in Scope 1+2 carbon emissions.
Particularly impressive is the increase in the manufacturing sites that have establishedenergy management systems. As at 30 June 2022, 67% of our plants, local assembly
centers and regional logistics centers have established energy management systems(previous year: 21%). Good energy management is key to meeting our climate targets.
And as part of the commitment towards a 1.5°C future and to reducing our operationalemissions by 42% by 2030 (baseline 74,770 tCO 2 e in FY 2019/20), we started a Value
Discovery Audit process in partnership with Siemens at ten of our largest manufacturing
sites. The aim of the partnership is to execute projects based on audits to discover energy
efficiency and carbon saving potentials, and to maximize energy and CO 2 savings byimplementing the right strategies and measures for the unique site.
Siemens, in cooperation with our employees, identified efficiency and savings opportunities,
ranging from low-cost operational improvements and control optimization approaches tocapital-intensive equipment retrofits with an emphasis on the highest priority conservation
initiatives. The Value Discovery Audit has been successfully closed at the ten sites, resulting
a potential reduction of over 4,000 tCO 2 .
Additionally, our manufacturing facility in Chennai (India) has expanded its on-site solar
power generation capacity by 200% in the reporting year. Now, the site can cover 25% of
its total energy needs from its own renewables. To reach our 42% reduction target, further
initiatives are planned, including the electrification of the fleet, and further green electricity
projects.

Jim-Heng Lee, CEOdormakaba

4dormakaba

Sustainability Report 2021/22

In terms of our goal to assess all high-risk suppliers for their sustainability management by
a third party by 2027, we improved from 10% in the prior reporting period to 18.7% in the
FY 2021/22. Further, we have seen a slight improvement in diversity and inclusion objectives,with female representation at management level at 20% (vs. 19% in FY 2020/21). We havesigned the United Nations Women’s Empowerment Principles (WEPs), as part of ourcommitment to promoting gender equality in the workplace, and have launched various
projects and awareness-raising campaigns.
Our sustainability performance continues to be acknowledged by external parties. We werenamed as one of the most climate-conscious companies in Switzerland in a recent ranking
by BILANZ, Le Temps and Statista. The ranking acknowledges our emissions reduction
efforts and with it, our contribution to a low-carbon economy. In addition, our MSCI rating
improved from A to AA in the reporting period.
Recent geopolitical and global issues, such as energy dependency, ESG-related regulations,disruptions in supply chains, and the market trend towards a greener economy, determine aclear path we all need to follow. Strategic initiatives led through a sustainability lens also
contribute to innovation, employee and customer satisfaction, and ultimately to long-termbusiness success.
Keeping to our sustainability commitments, we continue in this direction with a clear focus,
setting higher sustainability standards within our industry, for every place that matters.
Sincerely yours,

Jim-Heng Lee
CEO dormakaba

Introduction

5

dormakaba

Sustainability Report 2021/22

About dormakaba
Our businessdormakaba Group (dormakaba) is one of the world’s top three companies providing smart,secure, and sustainable access solutions. Its comprehensive portfolio of strong brands
offers customers a broad range of products, solutions, and services for access to premises,buildings, and rooms. The portfolio includes locking systems – from cylinders, keys, and locks
to fully networked electronic and cloud-based access solutions – along with physical accessand automatic door systems, as well as a comprehensive range of door hinges, fittings, anddoor closers. The access solution business is complemented by products for time andenterprise data recording and high-security locks.. The company is also a market leader for
key blanks, key-cutting machines, and automotive solutions such as transponder keys andprogrammers, as well as acoustic movable partitions and horizontal and verticalpartitioning systems.
dormakaba has a long tradition of innovation and engineering expertise. Its innovation
leadership anticipates and fulfills customer needs through continuous technologicaladvancement, creating state-of-the-art solutions that add value for customers and end
users alike.
dormakaba is active in over 130 countries and is present in all relevant markets throughproduction sites, distribution and service offices, and collaboration with local partners.
As a publicly listed company, dormakaba’s fundamental goal is to increase its long-term
enterprise value across industry cycles and economic fluctuations. It is assisted in this by astrong Pool Shareholder Group that ensures the long-term orientation of its strategy.
Beyond creating shareholder value, the company’s strategy sustains the interests of otherstakeholders, most importantly its customers, partners as well as employees andassociates. A customer-centric approach – backed by the strong positioning of
dormakaba’s products, solutions, and services through production facilities coordinated by
the Group and distribution channels in all key industry markets – provides a firm foundation
for global growth.

In November 2021, the new corporate growth strategy, Shape4Growth, was presented tothe public and its implementation began at the start of January 2022 . Shape4Growth will
accelerate profitable growth through a focus on core businesses, core markets, andcustomer-centricity, enabled by enhancements in operational excellence and scale, capital
deployment, and culture.
This growth strategy creates clear portfolio segmentation concentrated on dormakaba’s
global core businesses: Access Automation Solutions (AAS; formerly Entrance Systems),
Access Control Solutions (ACS; formerly Electronic Access & Data, Lodging Systems),
Access Hardware Solutions (AHS) 1 ) , and Services. These businesses are less exposed toeconomic and market fluctuations and offer the highest growth and margin potential.
Shape4Growth also emphasizes the markets where dormakaba has established thestrongest position and where its global core businesses can expand the most.
A clear focus on operational excellence, notably in procurement, pricing, and IT, provides asecure basis for profitable growth, which will be further supported by effective capital
deployment through improved R&D return, continued active portfolio management, andtargeted partnerships. The company has established a range of internal initiatives to foster

Introduction

6

dormakaba

Sustainability Report 2021/22

a strong culture that focuses on the customer, emphasizing teamwork, implementation,transparency, and accountability.
The broad business goals of the Shape4Growth strategy include enhancing growthpotential by driving innovation and quality, expanding services businesses, and maintaining
or achieving a top-three leadership position in all core countries.
1)

Within this product cluster, only Door Closers are identified as global core products

Operating model
The implementation of Shape4Growth includes changes to dormakaba’s operating model,
which took effect on 1 January 2022. There are now three customer-centric regions andsales organizations for Access Solutions – Americas, Asia Pacific, and Europe & Africa –supported by global functions that secure efficiencies of scale and business synergies, such
as Marketing & Products, Product Development, and Operations. Key & Wall Solutions(KWS) remains unchanged as a self-contained global business. The Group is making
additional IT investments to secure the growth potential of this organizational
rearrangement by, harmonizing and optimizing its IT infrastructure, reducing internal
complexity, and enabling growth.

A detailed description of the new structure can be found in the Notes to the consolidated financial
statements for financial year 2021/22.

Our value chain

Introduction

7

dormakaba

Sustainability Report 2021/22

Our employees 1 )Employees by region

Employees by contract type1)

Employees by employment type

Headcount as at 30 June 2022, excluding apprentices, trainees, interns, and contract workers

The key performance indicators for the above human resources data and the fluctuation
figures available in the Fair Employment chapter and the ESG Performance Table arebased on 100% of dormakaba Group employees as at 30 June 2022. The total workforce inthis scope consisted of 15,716 employees, based on headcount. While the majority of ouremployees work full-time and on the basis of permanent contracts, 6% are engaged on apart-time basis. 45% of the employees in this scope are covered by collective bargaining
agreements. In addition, dormakaba engaged 290 apprentices, trainees, and interns, andemployed 2,187 contract workers at the sites in scope.
The other social and all environmental key performance indicators found in this report
represent 95% of dormakaba employees as at 30 June 2022, which are located at theapproximately 100 sites in the reporting coverage (see Outro for a map of included sites).

Introduction

8

dormakaba

Sustainability Report 2021/22

Strategy & Approach
We are committed to shaping a more sustainable industry andfuture. Sustainability is embedded at the core of our strategy andvision, and it is present in everything we do.

dormakaba strives to promote sustainable development along the value chain as part ofour economic, environmental, and social responsibility toward current and future
generations. We seek an open and transparent dialogue with stakeholders to definestrategies and actions based on clear goals and continuous improvements. We adhere to
the precautionary principle as the foundation of sustainability. Negative impacts on theenvironment and health should be avoided in advance to the greatest extent possible by all
employees in all business activities. This approach is set out in our Code of Conduct, which
outlines our values, principles, standards, and norms of behavior.

Sustainability is embedded in our strategy and vision
As part of our new company strategy Shape4Growth, dormakaba has committed to anindustry-leading framework for sustainability with ambitious ESG targets. We share thebelief that sustainability is core to the future of our industry, of the building industry ingeneral and thus to our business model. With Shape4Growth, we have further integrated
sustainability into our solutions, operations, and processes to better answer the
expectations of our customers. We must do our part to reduce the carbon footprint of thebuildings we supply, and we aim to do the same in our internal operations.

Materiality
Our material topics were defined in the course of a comprehensive materiality
reassessment in FY 2020/21 and are valid for the years 2021–2027. We were able to identify
ten topics that are the most relevant for our stakeholders and for those where we have thehighest impact on sustainable development. Full details on the materiality process can befound in the Outro.

Strategy & Approach9dormakaba

Sustainability Report 2021/22

Strategy & Approach10

dormakaba

Sustainability Report 2021/22

Our Sustainability Framework 2021–2027
Following the reassessment of our material topics, we have developed a sustainability
framework in line with our most material issues, along three Pillars: People, Planet, andPartnerships. Within each Pillar, we have set clear sustainability targets that determine oursustainability-related efforts for the period 2021–2027.

Strategy & Approach11dormakaba

Sustainability Report 2021/22

Strategy & Approach

Strategic targets
In line with this strategic approach, dormakaba has committed to work towards 31
sustainability goals during the current strategic period. As the targets were set in late 2021,
only a part of the planned initiatives have started to be implemented, although we havereached important milestones in several of these. Below is a summary of the status of thetargets as of 30 June 2022. You can read about these achievements in more detail in therelated chapters of this report.

PeopleMaterial Topic

TargetTargetYear

Baseline
FY 2020/21

Performance
FY 2021/22

Notes

Fair Employment

Maintain our employee
engagement score at or
above the IBM Global Norm
(71)

2027

70*

No change

The next dormakaba
dialogue is planned for FY
2022/23

Training &Education

Increase average training
hours to 20 hours per
employee2027

13 hr/FTE

12 hr/FTE

There were substantiallyfewer mandatory trainings
on Compliance andInformation Security in FY
2021/22 versus the previous
year.

Diversity &Inclusion

1 in 3 managers are women

2027

19%

20%

25% women in succession
planning for senior
management positions

2027

14%

No change

Decrease the recordable
work-related injury rate by
33%

2027

1.4

1.5

Occupational
Health & Safety*

StatusThe Nomination Committeeof the Board of Directors
had not yet confirmed thesuccession planning as at
30 June 2022.

Baseline FY 2019/20 in line with the latest dormakaba dialogue results

PlanetMaterial Topic

TargetEnergy &EmissionsBaseline
FY 2020/21

Performance
FY 2021/22

Reduce operational emissions 2030
(Scope 1+2) 42% in line with a
1.5° future

74,770tCO2e*

68,625 tCO2e

Reduce value chain emissions(Scope 3) from purchased
goods & services, and the useof sold products by 25%

2030

1,124,936
tCO2e*

1,132,000 tCO2e

Although emissions frompurchased goods andservices have decreased,
improvements in datacollection systems including in the precision ofcountry-level sales figures have led to an increase in
Scope 3 emissions as awhole.

Become carbon neutral in our 2030
operations

74,770tCO2e*

68,625 tCO2e

Carbon emissions fromheating fuels, vehicle fuels,and purchased electricity
are to be reduced by ourown actions in line with our
1.5° commitment, andresidual emissions will be
offset through Gold
Standard-certified projects
starting in 2030 only.

Achieve net zero emissions

TargetYear

Latest 1,199,704
2050 tCO2e*

1,200,625 tCO2e

Notes

Status12

dormakaba

Sustainability Report 2021/22

Circular Economy& Materials*

Strategy & Approach

Have best-in-class energy
efficiency for new products

2023

-

An industry
benchmarking on energy
efficiency for 16
representative productclasses in partnershipwith external experts
was commissioned, to
set benchmarks for
future productdevelopments.

Reduce energy intensity of
our operations by 25%

2030

100.5
MWH/
mCHF*

92.2 MWH/mCHF

80% of purchased electricity
is from green sources

2030

45.5%

46.4%

100% of fleet in Germany,
France, and the UK iselectric- or hydrogen-based

2030

–

1%

All manufacturing sites
maintain energy
management systems basedon ISO 50001

2023

21%**

67%

All new productdevelopments andoptimizations are covered byour circularity approach

2023

–

EcoDesign, Design for
Repair, Disassembly &Recycling guidelines arebeing developed inconjunction with three
new productdevelopments in our
Door Hardware,
Electronic Access, andData and Entrance
Systems productclusters.

The pilots will continue in
FY 2022/23 and theresulting guidelines will beincorporated as part ofglobal ProductDevelopment directives andprocesses.

We offer extended producer
responsibility take-backschemes for all products andpackaging in ten top sales
countries

2027

–

-

9 out of the 10 top sellingcountries will develop
detailed four-year actionplans for launching takeback programs and toevaluate local recycling
companies for partnerships
in FY 2022/23.

Zero fossil fuel-based plastic
used in packaging

2027

223 tons

312 tons

The launch of related
initiatives is planned for FY
2023/24.

100% of paper, wood, andcarton stems from Forest
Stewardship Councilcertified sources

2027

–

-

Integrating requirements
into specifications andpackaging guidelines starts
in FY 2022/23.

Double the total number ofsustainability-related
product declarations/certifications, including
Cradle-to-Cradle and forrecycled content

2027

170

200

Zero waste to landfill in
operations

2027

3,443 tons

2,724 tons

33 manufacturing sites willdevelop detailed Zero
Waste to Landfill actionplans in FY 2022/23.

Baseline
FY 2020/21

Performance
FY 2021/22

Notes

10%

18.7%

Baseline FY 2019/20 in line with Science Based Targets initiative validation** Baseline FY 2019/20

Partnerships

Material Topic

TargetTargetYear

Supplier
Sustainable
Development

Assess all high-risk suppliers
2027
for their sustainability
management by a third party
or off-board them for lack ofparticipation

Status13

dormakaba

Human Rights

Customer Health& Safety*

Sustainability Report 2021/22

Strategy & Approach

At least 45% of our high-risk
suppliers participate in oursustainability engagement
program

2027

10%

18.7%

Close at least 80% of highpriority corrective actions ofassessed suppliers

2027

-

52%

90% of assessed supplierswith priority findings havecompleted a sustainability
training

2027

-

–

The launch of related
initiatives is planned for FY
2022/23.

Provide information
regarding conflict minerals
for high-risk suppliers

2027

-

-

Developing process for
Conflict Minerals Reporting
Template distribution isplanned to start in FY
2022/23.

Reduce the risk of forcedlabor for migrant workers byproviding ethical recruitment
trainings for all our labor
agents in sending andreceiving countries

2027

–

–

The launch of related
initiatives is planned for FY
2023/24.

Support the right to water incommunities where we
manufacture by establishingwater stewardship programsin areas of high water
scarcity, with no absoluteincrease in water
consumption and reducing
water intensity by 28%

2027

75,086 m3 66,464 m3 absoluteabsolute
consumption andconsumption 20.7 L/hours worked*
and 25.5 L/
hours
worked*Ensure supply chain
traceability for minerals
having high risk of child labor

2027

–

Cobalt traceability
dialogues with key
suppliers have been
started in order tounderstand Tier 2+
supply chain
characteristics.

Developing process for
Cobalt Reporting Template
distribution is planned tostart in FY 2022/23.

Collaborate on health andsafety training with
subcontractors andinstallation partners

2027

–

-

The launch of related
initiatives is planned for FY
2023/24.

Collaborate on training andprovide informationmaterials on the safe
operation of our products toall end users

2027

–

-

The launch of related
initiatives is planned for FY
2023/24.

At least one corrective action
and/or one awarenesstraining for each productrelated injury

2027

–

-

The launch of related
initiatives is planned for FY
2023/24.

Baseline FY 2019/20

14

dormakaba

Sustainability Report 2021/22

Sustainability governance
Our Sustainability Charter defines the management framework required to achieve oursustainability vision. In FY 2021/22, the Charter was updated in line with our new corporate
strategy and sustainability framework, and a new sustainability organization was defined.
The most fundamental change to this is the establishment of four Expert Groups that are
integrated into the overarching Global Sustainability Working Group: Sustainable Products,
Supplier Sustainable Development, People and Environment, Health & Safety. Eachsustainability target is allocated to a particular Expert Group with the most relevant job
functions and business know-how. Their contribution is key to ensuring the successful
implementation and development of strategic initiatives to achieve our sustainability
targets.
An overview of the dormakaba sustainability organization is found below. Further duties,
authorities and reporting channels for the various bodies are set out in the Sustainability
Charter.

Sustainability organization

Strategy & Approach15

dormakaba

Sustainability Report 2021/22

Strategy & Approach

Board of Directors

Executive Committee

Guides the dormakaba sustainability framework and is

Sets and approves the strategic objectives and defines an

responsible for its overall governance by reviewing andappropriate strategic thrust that incorporates theendorsing it.

objectives of the organization, its operational structure
and the business processes needed to meet thecompany’s obligations

Group Sustainability Council

Corporate Sustainability

Ensures proper implementation of the sustainability

Develops, monitors, and coordinates the implementation

framework. It has the mandate of supporting valueof the sustainability management system across thecreation for the main stakeholders by integrating ethical,

organization and develops its related policies andsocial, and environmental responsibility into daily activities

standards. The role of Corporate Sustainability is toas defined in the dormakaba Code of Conduct and based

report and make appropriate recommendations to theon global best practice. Its purpose is to review

Group Sustainability Council with regard to thesustainability performance and discuss and recommend

company’s management of its sustainability and its

to the EC the policies, processes, systems, and staff

conduct of business in accordance with the above-

required to identify and meet the relevant international

mentioned external and internal policies, regulations,standards and agreements in the social, environmental,

charters, and principles.

and economic fields to which it is formally committed as amember of the UN Global Compact.

Global Sustainability Working GroupRegion Sustainability Network

Discusses global and regional sustainability performance,

This is not a required body but may support the successful

exchanges on current sustainability initiatives and best

local implementation of sustainability initiatives throughpractice, develops concepts for new initiatives thatthe development of guidelines, templates, and knowledge

support the achievement of sustainability targets andsharing. It recommends and develops concepts for theoperationalizes them wherever appropriate. Consists ofcorresponding Expert Group’s sustainability action planfour Expert Groups: Sustainable Products, Supplierand supports activities to raise sustainability awareness.

Sustainable Development, People, and Environment,
Health & Safety. The function of the Expert Groups is toconceptualize and operationalize specific initiatives within
the members’ functional area of expertise to ensure
target achievement.

Site Sustainability TeamThe Site Head and any local team members are ultimately
responsible for the local implementation of sustainability
projects and improvement initiatives based on global
sustainability targets.

16

dormakaba

Sustainability Report 2021/22

Stakeholder dialogue and partnerships
dormakaba attaches great importance to regular contact and ongoing dialogue with our
stakeholders at both the local and global level. We consider the close involvement of our
stakeholders to be an asset in our ongoing efforts and therefore pursue a goal of creating
better mutual understanding, based on trust, to enhance our partnerships andcollaboration. Examples of stakeholder dialogues include:• Besides selected internal stakeholders, external stakeholders, including NGOs andhuman rights experts, were invited to provide input on our analysis of salient humanrights issues (FY 2018/19).
• Sustainability stakeholder dialogues were held with representatives from the Group
Sustainability Council and with external stakeholder groups including banking andinvestment partners, suppliers, customers and governmental bodies as part of ourmateriality assessment process (FY 2020/21).
• All employees were invited to give their opinion on the most important sustainability
challenges that we should address. Over 2,000 employees participated, and theresults formed an integral part of the development of our current sustainability
strategy (FY 2020/21).
• Our Global Brand Tracking survey examines customer demand, and their perceptionof our performance. The survey included sustainability-related questions for thesecond time (FY 2021/22).
• The findings of in-depth interviews with various internal and external stakeholder
groups shaped the development of the new Shape4Growth strategy (FY 2021/22).
• During a panel discussion with architects from well-known international architecturalfirms, we received positive validation of our work and the direction set regarding
product sustainability (FY 2021/22).

Stakeholder

Key topics and concerns

Platforms

Grievance mechanisms

Employees

Employment practices
and benefits,
occupational health andsafety, sustainablebusiness practices,
environmentally safe
production processes

dormakaba dialogue
survey, bilateralmeetings with local
Human Resources
representatives,
employee works councils
or trade unions, safetycommittees

Reporting channels
defined in the Code of
Conduct, open-door
policies, grievancemechanisms in place aspart of collective
bargaining agreements,
meetings with tradeunion representatives

Investors

Business performance
Anchor Shareholders
and strategy, responsible Events, Capital Market
business practices,Day, roadshows, analyst
ecoproducts,
conferences, bilateraltransparent reporting,meetings, ESG rating
as well as quantifiable
questionnaires
objectives

Interviews with Investor
Relations and membersof the Executive
Committee upon request

Architects,
specifiers

Product offering,product design andquality, trustworthinessand reliability, price level,
innovation

Annual brand tracking
survey, trade shows andassociations, customer
service hotlines

Customer complaint
process

Partners,
installers,
distributors,
customers andend users

Technical training andproduct specifications,product design andquality, trustworthinessand reliability, price level,sustainability demands
for green building
certifications

Partner Days
Customer complaint(conferences), in-house process
product training, annual
brand tracking survey,
trade associations, directe-mail requests

Suppliers

Qualification process

Bilateral meetings,
surveys, on-site audits

Third party
whistleblowing hotline

Bilateral meetings

Direct contact

Local government Employment, health,safety, andenvironmental
compliance

Strategy & Approach17

dormakaba

Sustainability Report 2021/22

Partnerships

External acknowledgments
dormakaba has been awarded a silver medal for our sustainability
management by the assessment firm EcoVadis, placing thecompany in the top 9% of all assessed companies in the assigned
sector. Our company is especially strong in the areas of labor andhuman rights (top 9%) and sustainable procurement (top 6%)
compared to other companies in our industry.

dormakaba received an encouraging score of B for the 2021 Carbon
Disclosure Project (CDP) report. CDP requests thousands ofcompanies to report on climate change on behalf of over 800
investors with assets of USD 100 trillion. The B rating reflects
the strong progress dormakaba shows on climate change and carbon emissions
management. Our 2020 CDP score is higher than the average score in our assigned sector(B-) as well as the CDP worldwide average (B-).

dormakaba has improved its MSCI rating from A to AA, which puts
us among the leaders in our industry. The MSCI ESG Rating aims tomeasure a company’s management of financially relevant ESG risks and opportunities.

Strategy & Approach18

dormakaba

Sustainability Report 2021/22

Contributing to the UN
Sustainable Development Goals
In 2015, the 193 countries of the United Nations General Assembly adopted the Agenda
2030, with 17 Sustainable Development Goals (SDGs) and 169 targets at its heart. These
are ambitious targets for people, the planet, and prosperity which require partnerships
between governments, non-governmental organizations (NGOs), businesses, andinstitutions of higher learning. If we are to achieve them, everyone should be aware ofthem.
Because of their importance, dormakaba aims to increase stakeholder awareness of theSDGs, especially within our workforce, which we have done through our Enterprise Social
Network. As a first step towards contributing to the SDGs, we have mapped our definedmaterial topics to the targets of the SDGs. While it is essential to achieve all 17 Global
Goals, we can make a substantial contribution to nine of the SDGs by addressing ourmaterial topics. We also see the SDGs as a guide to new business opportunities.

Goal 3 – Good Health and Well-being

Goal 3. Ensure healthy lives and promote well-being for all at all ages
By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals
and air, water and soil pollution and contamination (Target 3.9).

Material Topic: Customer Health & Safety
How we are contributing
Studies show that in North America and Europe people spend about 90% of their timeindoors and many indoor environments have pollution levels two to five times higher thanoutdoor levels. It is therefore our responsibility to ensure that our products do not containhazardous materials that may harm people’s health. We provide our customers withtransparent product declarations on the materials used, under the Health ProductDeclaration (HPD) standard, as well as in accordance with related regulations such as
REACH and RoHS. Several products have qualified as testing for low emissions of volatileorganic compounds. As of today, we have published 40 HPDs.

UN Sustainable Development Goals

19dormakaba

Sustainability Report 2021/22

We continuously work to reduce the use of hazardous materials in our production
processes, and our filter systems ensure that potentially hazardous substances are notreleased externally. In Malaysia, for example, we have replaced the use of HMT-11 with theless harmful LK-11 during a metal treatment process, and a dust collector system has been
installed. As a result, chemical exposure monitoring showed 0.046 mg/m 3 , which isconsiderably less than the permitted exposure limit (10.0 mg/m 3 ). Further, in China wehave replaced a solvent-based tetrachloroethene (PERC) component washing machinewith a water-based one and upgraded a closers washing machine (Y-degreasing). In total,
the use of tetrachloroethene has thereby been reduced by over 70% at the manufacturingsite. In another facility, we have substituted the use of hydrochloric acid with pre-mixed
boric acid salt, which also reduced chemical exposure hazards.

Goal 4 – Quality Education

Goal 4. Ensure inclusive and equitable quality education and promote lifelong
learning opportunities for all
By 2030, ensure equal access for all women and men to affordable and quality technical,
vocational, and tertiary education, including university (Target 4.3).
By 2030, ensure that all learners acquire the knowledge and skills needed to promotesustainable development (Target 4.7).
By 2030, substantially increase the number of youth and adults who have relevant skills,
including technical and vocational skills, for employment, decent jobs, and entrepreneurship(Target 4.4).

Material Topic: Training & Education
How we are contributing
We provide our employees with regular vocational training on topics such as leanmanagement, health and safety, and product offerings. We partner with local schools anduniversities by offering apprenticeships and internships as well as work-study programs. To
raise awareness of sustainable development, we regularly communicate our sustainability
initiatives to employees through our intranet. Furthermore at the beginning of FY 2022/23
we are launching two eLearning modules on sustainability in five languages. We have madegood progress in developing the skills of our workforce. For example, 87% (12,429
employees) have completed at least one eLearning module, compared to 83% in theprevious financial year. We keep adapting our learning and development portfolio in linewith current trends. Furthermore, by 2027 we aim to increase average training hours to 20
hours per employee (baseline 13 hours/FTE in FY 2020/21).

UN Sustainable Development Goals

20dormakaba

Sustainability Report 2021/22

Goal 5 – Gender Equality

Goal 5. Achieve gender equality and empower all women and girls
By 2030, end all forms of discrimination against all women and girls everywhere (Target
5.1).
By 2030, ensure women’s full and effective participation and equal opportunities forleadership at all levels of decision-making in political, economic and public life (Target 5.5).

Material Topic: Fair Employment, Diversity & Inclusion
How we are contributing
We recognize, respect, and embrace the differences between each other and provide equal
opportunities for our employees. By 2027, we aim to achieve our target of ensuring that
one-third of our managers are female, and to improve the gender diversity of ourleadership pipeline. As signatories of the UN Women's Empowerment Principles (WEPs),
we are committed to implementing the seven principles that guide businesses to foster
gender equality and women’s empowerment.

Goal 7 – Affordable and Clean Energy

Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all
By 2030, increase substantially the share of renewable energy in the global energy mix(Target 7.2).
By 2030, double the global rate of improvement in energy efficiency (Target 7.3).

Material Topic: Energy & Emissions
How we are contributing
We currently source renewable electricity for 31% of the locations within the scope of thisreport (see map in the Outro). We are focused on increasing our use of renewable energy
as a central component of our strategy to reduce our carbon emissions. This approachaligns with our commitment to the Science Based Targets initiative (SBTi) and the Paris
Agreement.
In FY 2021/22, energy-saving initiatives were implemented at various sites in the reporting
coverage. This work included: retrofitting facilities to feature LED lighting and monitoring
systems; upgrading equipment such as air compressors, air heaters, and air dryers; theoptimization of heating and cooling systems; and the procurement and on-site productionof renewable electricity. These efforts led to an annual emissions avoidance ofapproximately 17,000 tCO 2 e. In addition, we expanded the production of on-site solar
energy by 10%.

UN Sustainable Development Goals

21

dormakaba

Sustainability Report 2021/22

Goal 8 – Decent Work and Economic Growth

Goal 8. Promote sustained, inclusive, and sustainable economic growth, full andproductive employment and decent work for all
Protect labor rights and promote safe and secure working environments for all workers,
including migrant workers, in particular women migrants, and those in precarious
employment (Target 8.8).
Take immediate and effective measures to eradicate forced labor, end modern slavery andhuman trafficking, and secure the prohibition and elimination of the worst forms of childlabor (Target 8.7).
By 2030, achieve full and productive employment and decent work for all women and men,
including for young people and persons with disabilities, and equal pay for work of equalvalue (Target 8.5).

Material Topics: Fair Employment; Human Rights; Occupational Health & Safety
How we are contributing
We are committed to providing our nearly 16,000 employees with fair working conditions.
This entails fulfilling our duty of care towardsour employees in terms of healthy working
environments, fair compensation, and full respect for the ILO core labor standards.
We therefore address not only the safe operation of machines, ergonomic workplaces, andthe handling of hazardous substances, but also mental health issues including stress,
depression, and emotional well-being, and refrain from offering excessively low wages (i.e.,
wage dumping). Furthermore, our Group-wide Responsible Labor Directive regulates theminimum business standards applied during recruiting, hiring, and employment regarding
freely chosen employment, working hours, wages and benefits, the prevention of child labor,
freedom of association, and workers' accommodation. Besides this, the Zero Recruitment
Fees Directive regulates the business standards regarding fees and costs associated withrecruitment governed by the Employer Pays Principle. We are, however, also committed tofurther expanding our sphere of influence with regard to our suppliers. This is why theseprinciples are also enshrined in our Supplier Code of Conduct and are part of our supplierrisk assessments.

Goal 9 – Industry, Innovation, and Infrastructure

Goal 9. Build resilient infrastructure, promote inclusive and sustainableindustrialization, and foster innovation
By 2030, upgrade infrastructure and retrofit industries to make them sustainable, withincreased resource-use efficiency and greater adoption of clean and environmentally soundtechnologies and industrial processes, with all countries taking action in accordance with
their respective capabilities, and specifically, reduce the CO 2 emission per unit of value
added (Target 9.4).

Material Topics: Energy & Emissions; Circular Economy & Materials
How we are contributing
Further to our contributions to resource-use efficiencies in the production phase, which are
outlined under Goal 7, we also aim to increase the resource efficiency of our products. Our
Group-wide Environment Directive regulates minimum business standards inmanufacturing practices, product circularity, and eco-design, including material selection
and the energy efficiency of the product use phase. The dormakaba sustainability
commitment and life cycle approach are also integrated into our Product Design Manual.

UN Sustainable Development Goals

22dormakaba

Sustainability Report 2021/22

We have several examples in place to provide transparent information on our products,
including material compliance activities, and publishing product declarations andsustainability-related certifications. Furthermore, our digital Product CO 2 Inventory Tool
provides information on the carbon emissions of energy-consuming products during theiruse phase. This supports product development and optimization activities with the aim tocreating more energy-efficient products. An example is our ST PRO Green RC3, recently
launched in the Austrian and Swiss markets, which is a new, energy-saving automatic
sliding door with a thermally separated profile system that reduces energy loss in thebuilding thanks to a very low heat transfer coefficient.

Goal 10 – Reduced Inequalities

Goal 10. Reduce inequalities within and among countries
By 2030, facilitate orderly, safe, regular and responsible migration and mobility of people,
including through the implementation of planned and well-managed migration policies(Target 10.7).

Material Topics: Fair Employment
How we are contributing
We are committed to “Zero Recruitment Fees” throughout our global operations. We takespecial care to enforce the Employer Pays Principle, particularly in the recruitment offoreign workers, in order to facilitate orderly, safe, and responsible migration and mobilityof people. Should we discover that recruitment fees have been paid by our employees, weare committed to reimbursing these within a short time frame.

Goal 12 – Responsible Consumption and Production

Goal 12. Ensure sustainable consumption and production patterns
By 2020, achieve the environmentally sound management of chemicals and all wastes
throughout their life cycle, in accordance with agreed international frameworks, andsignificantly reduce their release to air, water, and soil in order to minimize their adverse
impacts on human health and the environment (Target 12.4).
By 2030, substantially reduce waste generation through prevention, reduction, recycling,
and reuse (Target 12.5).
By 2030, ensure that people everywhere have the relevant information and awareness forsustainable development and lifestyles in harmony with nature (Target 12.8).

Material Topic: Circular Economy & Materials
How we are contributing
The generation of different waste streams is an inevitable consequence of our operations,although by implementing the circular economy approach, we aim to send zero waste tolandfill in our operations by 2027 (baseline 3,443 tons in FY 2020/21). We monitor our wasteby treatment method and waste type. Approximately 73% of the waste stream wasrecycled, reused, or recovered (including raw materials and energy recovery) in FY 2021/22.
Our contributions to the environmentally sound management of chemicals and hazardous
materials are detailed under Goals 3 and 6.

UN Sustainable Development Goals

23dormakaba

Sustainability Report 2021/22

Goal 13 – Climate Action

Goal 13. Take urgent action to combat climate change and its impacts
Strengthen resilience and adaptive capacity to climate-related hazards and natural
disasters in all countries (Target 13.1).
Improve education, awareness raising, and human and institutional capacity on climatechange mitigation, adaptation, impact reduction, and early warning (Target 13.3).

Material Topic: Energy & Emissions
How we are contributing
In addition to the initiatives mentioned under Goal 9, in 2021, SBTi has approved our targets
for operational and value chain emissions, including emissions from purchased materials
and the use of our products. Progress towards the operational emissions target is being
tracked as part of our sustainability-linked credit facility. We aim to reduce Scope 1+2
emissions in line with a 1.5° world by 42% versus our baseline by 2030, and to reduce Scope
3 emissions by 25% in the same time period. We have reduced our Scope 1+2 carbon
emissions by 8.2% versus the target baseline of FY 2019/20 through green electricity
purchases and energy efficiency projects.

UN Sustainable Development Goals

24

Sustainability Report 2021/22
Peopledormakaba

Sustainability Report 2021/22

Fair Employment
We strive to create an engaging and fair working environment, where
the rights of our employees are respected and where our employees
can leverage their strengths and build their skills.
Our approach
Our success is based on the passion and performance of our employees. It is their
dedication to deliver excellent solutions to our customers that helps us maintain and further
develop our competitive global position, which is why we have a strong focus on people inour corporate strategy. As a company with employees in over 50 countries, we aim toensure an engaging working environment to be an employer of choice for current andprospective employees. We also ensure that we treat employees fairly and in accordancewith our company values, and that we provide them with equal opportunities and fair
remuneration.
Our approach towards our employees is governed primarily by our Code of Conduct, as well
as by country-based labor regulations and the local employee handbooks, where available.
Our Group-wide Responsible Labor Directive regulates the minimum business standards
during recruitment, hiring and employment regarding freely chosen employment, working
hours, wages, and benefits, the prevention of child labor, freedom of association, andworkers' accommodation. Furthermore, the Zero Recruitment Fees Directive regulates thebusiness standards regarding fees and costs associated with recruitment governed by the
Employer Pays Principle. The Directives came into force in September 2021.

Key activities
Engaging our employees
High employee engagement has been proven to lead to increased productivity, fewer
workplace accidents, and improved customer satisfaction. A key method for supporting
employee engagement is to ensure a culture of open dialogue across the organization.
To monitor any changes in the level of employee engagement, we use the IBM global
norm 1) . Our target is to maintain our Employee Engagement score at or above the IBM
Global Norm (71% favorable) until 2027. In the latest Employee Engagement survey“dormakaba dialogue” in 2020, we achieved a score of 70%. The next assessment isplanned for 2023.
In FY 2021/22, we focused on including employees in the change process resulting from the
new company strategy Shape4Growth. We used employee surveys, known as Pulse Checks,
to understand sentiment towards the change process itself and the perceived impact ofShape4Growth in general. For each round of Pulse Checks, a new random representative
group of dormakaba employees is selected to take part. The first Pulse Check was
conducted in March 2022 in 12 languages with a participation rate of 54%.
The main findings were:• High level of agreement that the changes connected to Shape4Growth are necessary
and will make dormakaba more customer-centric• Predominantly positive feelings towards the Shape4Growth process• High level of pride in working at dormakaba• Need for further clarification of the meaning of the change for each individual
employee
1)

The IBM global norm is a composite of employee responses from 400 companies acrossorganizations from all industries and all geographies. It provides comparative results that represent
the average scores across all organizations in the IBM norm database running employee surveys for
multiple years.

People26

dormakaba

Sustainability Report 2021/22

Innovation throughteamwork
At the Access Control
Solutions Hackathon,
employees can work for
two and a half days on aself-selected topic
connected to thedormakaba business. This

Image from the Hackathon in Rümlang, Switzerland

can be a challenge fromtheir customers’ or their own everyday life, a known problem, or a creative idea. The
Hackathon offers them room to question the status quo, networking opportunities,
and the chance to implement their ideas away from the daily work routine. This
allows the participants to move outside of roadmaps and current processes, withthe aim of developing innovative solutions for customers and markets.
The first open dormakaba Hackathon took place in 2021, bringing together around70 colleagues from various business units. The jury tested the ideas with specificcritical questions to check their quality and suitability for the business, then voted
for the winners in three categories. The winner of the fourth category was selectedby the audience. As a result, six ideas were selected to become part of the portfolioof dormakaba. One of these ideas was launched in January 2022, while the others
are still under development.
After last year’s success, the Hackathon was organized for the second time in
Rümlang (Switzerland) with around 65 colleagues from all over the world.

“The hackathon represents many of the dormakaba values such as courage. The
participants had to be courageous to introduce and showcase their innovations infront of the jury and their peers, which I find inspirational.” - Andreas Haeberli, CTO
of dormakaba and member of the Hackathon jury.
During FY 2021/22,
another interesting
employee engagement
initiative took place inFrance, the Teamstarter
program. Employees
could publish
dormakaba employees in an office garden

improvement projects(including the objective,

target and cost) on an online platform under the following five topics: Health &Safety; Society & Sustainability; Well-being at work; Customer experience; andTeamwork/collaboration. All dormakaba France employees had the opportunity toplace virtual money behind projects that they thought would be worth bringing tolife.
After 10 months, 23 projects were published and ten of them were realized. For
example, employees created a garden and introduced yoga courses in theworkplace, implemented touchless solutions in the building, and organizedworkshops on business-related topics. 70% of the employees of dormakaba France
took part in the program, either as organizers or as voters.

Fair remuneration and benefits
We aim to establish fair compensation that is determined based on job function andrelevant 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 aconsistent manner across the organization. In addition, we provide locally specific benefits

People27

dormakaba

Sustainability Report 2021/22

Peopleand welfare programs. In FY 2021/22 for example, we rolled out benefits during maternity,
adoption, and paternity leave in the UK and introduced four weeks' paid parental leave forboth mothers and fathers in the USA. As stipulated in the Group Compensation Directive,
we refrain from offering excessively low wages (i.e., wage dumping).
After having conducted social audits in Malaysia and Singapore, we were confronted withthe fact that an especially vulnerable group, migrant workers, frequently pay fees toagencies, i.e. for the recruitment itself, travel, passport and visa processing. To protect
them, we have developed improvement actions and the Zero Recruitment Fee Directive,
which regulates the minimum business standards regarding fees and costs associated withAn overview of bestpractice employmentrelated policies and benefits
across the Group can befound in the Policies andBenefits Table.

recruitment and was published in FY 2021/22. It commits dormakaba to bear the costs
associated with any services rendered by respective migrant worker recruitment agencies.

Policies and Benefits

Fees discovered to have been paid by migrant workers have since been reimbursed.

Closing the living wage
gap
We started the global
screening process todiscover any living wage
gaps for direct andcontract workers, and in a
few countries, forexample in the UK and
Peru, we have alreadystarted to develop actions
to close discovered gaps.
In the UK, the process started back in 2013, when we agreed to gradually increase
the pay for our lowest earning staff to be in line with the Real Living Wage (RLW),
a sum higher than the statutory national minimum wage. In each annual salary
review, this group received a higher percentage until we reached the target (£9.50
per hour) in 2020. Even during the pandemic, we increased pay for this group in linewith the RLW by 2.2%.
After the results of an internal analysis proved that our employees' hourly rates
were being paid above the minimum rates set by the RLW Foundation, as well as
gaining commitment from our contractors, we acquired the Real Living Wage
certification for our UK entity in FY 2021/22. We are committed to continuing to
track and pay the RLW and ensure that our contractors also do the same. This
commitment covers 594 headcounts and 86 contractors within our UK legal
entities.

Employee attraction and retention
We provide our employees with long-term professional development opportunities in order
to attract and retain a qualified workforce. This is vital to the company’s success. Whenfilling open positions, promoting from within our own workforce is preferred.

We strive to create adiverse and inclusive
workplace, where everyone
can be their authentic
selves.

Diversity & Inclusion

28

dormakaba

Sustainability Report 2021/22

PeopleAn employer of choicefor emerging talents
We offer young talents
challenging tasks in anenvironment where they
can grow and feelappreciated. The
dormakaba Rising TalentParticipants in the Rising Talent Development Program

Development Program in
the Region Americas gives interns the opportunity to gain experience in their areaof study while working on projects that have a lasting impact on our team,customers, and community to make access in life smart and secure. During FY
2021/22, 27 interns (including apprentices, co-ops, and Early Talent Rotation
Professionals) from Canada, the USA, Mexico, and Brazil took part in the program.
Four stayed beyond the initial program and an additional five were hired as fulltime employees. In June 2022, the new program was launched with 41 interns. The
participants work together with various functions, including Engineering, Finance,
IT, Operations, or Product Development, to mention just a few. Find out more
about the program from the interns themselves in this video.
In FY 2021/22, welaunched anothersuccessful graduate
trainee program, Project
Qingmiao in China, with
15 graduates fromdifferent universities andmajors. The project
includes four stages:
starting your career,
exploring businessdepartments, production
Graduates of Project Qingmiaoline practice, and businessdepartments rotation, offering 10 months of blended learning experience for theparticipants. In April 2022, the trainees completed their graduation report and 13 ofthem were officially appointed to their posts. In the next financial year, we areplanning to launch a Management Trainee Program at the same location. “Project
Qingmiao” will continue to supply outstanding talent to support the growth of our
Wah Yuet business.

Fluctuation
In FY 2021/22, a total of 2,560 employees joined the company and 1,975 left within thereporting scope. This corresponds with rates of 17% and 13% respectively, which reflects ahigher joiner rate than leaver rate. This can be explained by the large number of joiners

Further breakdown offluctuation data can befound in the ESG
Performance Table

through acquisitions within the reporting period.
ESG Performance Table

29

dormakaba

Sustainability Report 2021/22

Fluctuation by region (in percentage and headcount of permanent staff)

Employee fluctuation in Asia and the Americas was higher than in other regions, as inprevious reporting periods. In the Americas, this is attributed to continued consolidation of
manufacturing activities. The higher fluctuation in Asia Pacific is to be expected based onregional workforce trends.
In addition, in China, employees are usually appointed on the basis of fixed-term labor
contracts before being eligible for an indefinite contract. This results in a temporal shift of
the fluctuation rates for Asia Pacific and to a certain extent overall, since employees withpermanent contracts joining and leaving dormakaba are counted only after their contracts
have been converted (usually after the completion of two consecutive fixed-term contracts,
in accordance with Chinese Labor Contract Law).
The workforce aged under 30 shows higher joining and leaving rates compared to the otherage groups. This is consistent across all regions, and congruent with findings from a study
on general workforce turnover trends periodically conducted by the human resources
consulting firm Mercer.

Providing more flexible
working arrangements
to attract talent
As we learn from thepandemic and look to the
future, we recognize adesire for greater
flexibility and for more
options when it comes toRemote working at dormakaba

deciding how, where, andwhen we work. This was confirmed in one of our recent employee Pulse Checksurveys. Therefore, remote working has become a standard opportunity at
dormakaba for tasks that can be done remotely.
So far 25 countries have put remote working policies in place; an additional fivecountries are working on their polices. The progress of the implementation was
supported by a training initiative for managers and employees on working andcollaborating remotely. For roles that require on-site presence, local organizations
are exploring potential other forms of flexibility, for example changing shiftsystems in manufacturing or offering part-time work where feasible.

OutlookIn the upcoming financial year, one main focus will be on continuously supporting thebusiness in the change process resulting from Shape4Growth. To gain further insights into
this, another Pulse Check is planned for September 2022.

People30

dormakaba

Sustainability Report 2021/22

Also connected to Shape4Growth, we will introduce our new company culture. Newly
defined behaviors will be integrated into all HR processes such as recruiting andonboarding, the Perform & Grow performance management process, career development,
and learning and development. The development of the culture will be continuously
measured in the employee engagement survey, dormakaba dialogue. The next survey isplanned for 2023. Further, all existing Employer Branding material will be adjusted
according to our new company culture, thereby extending our portfolio by adding additional
image and video material of our employees which was produced during a photo and video
shoot in FY 2021/22. Lastly, we will start the first local rollouts of the dormakaba career
websites in Australia and Singapore.

People31

dormakaba

Sustainability Report 2021/22

Training & Education
Employee development is vital to maintaining and improving the skillsof our workforce and the quality of our offering.
Our approach
Today’s dynamic and globalized world requires new competencies. At the same time, manyindustries face serious skills shortages, especially in the areas of information technology anddigitalization. Employee development is vital to maintaining and improving the skills of ourworkforce and the quality of our products. This is especially true for a technology-driven
company like dormakaba. We want to offer careers instead of jobs and to prepare our
employees for the fast-changing world. This improves their motivation and performance on
the job, and increases their long-term employability. We will continue to invest in thedevelopment of both our employees and business leaders.

Our activities
We offer various training and development programs for our employees. While we apply
some of these programs on a consistent global basis – particularly leadership development– others are developed at the regional or country level to serve local needs.
We regularly gather and evaluate participant feedback after training sessions in order tomaintain and continually adapt the quality of our training and education programs. In
addition, our training programs are regularly evaluated as part of external audits for ISO
9001 certification. If a negative trend is identified through this audit process, management
meets to review the root cause and determine any potentially required remediation, which
may include increased communication and/or modifying the training program.
Our goal is to increase average training hours to 20 hours per employee by 2027 (baseline
13 hours/FTE in FY 2020/21). To provide our staff with the competencies they require to
perform their tasks safely and efficiently, and to support their career advancement,
dormakaba focuses on three areas:
1. Leadership development
2. Individual development and career management
3. Vocational and technical training

Leadership development
In line with our strategy and ambition, we aim to have the best leaders in key positions.
Therefore, we designed and deliver core leadership trainings, like Leading for Success,Leading Leaders, and individual executive coaching. Furthermore, we also continued tooffer both agile and classical project management trainings as standard curricula. During
FY 2021/22, a total of 268 employees took part in a leadership development program.
Our management development programs, the Advanced Management Program (AMP) andTalent Development Program (TDP), aim to develop the future leaders of the company. The
AMP focuses on further strengthening the leadership and business expertise of existing
successful managers, while the TDP focuses on high-potential employees. Both programs
are co-facilitated by our Executive Committee members and supported by faculty fromexternal business schools. The second module of the bi-annual AMP and TDP programs took
place in November 2021 with 32 participants from across the globe. The TDP program had afemale representation of 50%. The agenda included leadership, design thinking andinnovation, and M&A. All participants were offered a mentor at senior management level
after the program. Due to the success of the program, we are planning to continue it in
future fiscal years.

Individual development and career management
Our combined performance and succession management process known as Perform &Grow provides a common framework for measuring and managing performance andpotential. The objective-setting is based on the principle of Objectives and Key Results.

People32

dormakaba

Sustainability Report 2021/22

In FY 2021/22, we extended the number of users of Perform & Grow to 4,380 employees(approx. 500 more compared to the previous financial year) and will continue with further
rollouts in the coming years. Following the launch of the Shape4Growth strategy and thesubsequent changes to our operating model, all EC-1 positions worldwide have been
evaluated with regard to their value (job evaluation). The evaluated positions define thebasic framework of a new job architecture and are the foundations of career paths for
managerial positions as well as expert positions. This is the basis for robust Career
Management and is relevant to current employees and future career steps. In addition, we
extended the number of licenses for LinkedIn Learning and Coursera to 750 users, which
offers self-paced learning opportunities across a wide range of subjects.

Vocational and technical training
In today’s rapidly changing world of work, the importance of lifelong learning is steadily
increasing. For our business success, it is essential that our employees have the relevant
skills for their work. The training we provide covers topics such as lean management, healthand safety, and product offerings. Additionally, the increasing digitalization of our products
and services also requires new competencies – for example, on big data analytics andartificial intelligence. To ensure that our employees have the relevant skills in the long term,
we continue to invest in their vocational development and in promoting their talents.

Sales Excellence
ProgramIn FY 2021/22, we
continued our Sales
Excellence Program toprovide our salesorganization withinformation, metrics, andtools across the sales

Sales enablement training in Gothenburg, Sweden

process to help themachieve business growth and drive customer centricity.
Region Europe & Africa organized ten sales management trainings for 110
managers in English, French, and Russian. Furthermore, a core skills training wasdelivered in the Scandinavian countries, South Africa, France, the UK, and Ireland to
212 sales employees. At the same time, we executed a "train the trainer" programfor employees in Spain, Italy, and the Region Asia Pacific. From the Asian region, 52
sales leaders have been trained as facilitators, who are now able to further train
the over 500 sales colleagues in the region. Lastly, as part of a truly global focus onsales excellence, Region Americas also carried out three programs focusing on
Virtual Sales Effectiveness, Sales Leader Effectiveness, and Seller Rep
Effectiveness with 462 participants.

Our performance
Two topics characterized this financial year: first, the Covid-19 pandemic still had an impact
on how we set up our learning and development portfolio. Accordingly, the content of preexisting training formats was digitized on an ongoing basis. Second, the changes that
resulted from implementing our new company strategy also played an important role. To
support our employees in the change process, we offered different training courses onchange such as Change Leadership and Dealing with Uncertainty and Change. The
trainings were conducted by internal and external trainers and executive coaches.
Furthermore, a network of around 140 change agents was established, to support thesenior management in communicating the changes and implementing them within theirbusiness units. They were intensively trained over the course of three modules to preparethem for their tasks.

People33

dormakaba

Sustainability Report 2021/22

Below you can find the key results of our Learning and Development programs for FY
2021/22:• The average number of training hours per employee was 12 hours per year (versus 13hours/FTE in FY 2020/21). The downward trend is attributed to lower levels of
mandatory trainings related to compliance and Information Security.
• Over 14,000 employees now have access to our Learning Management System(LMS). In total, 87% (12,429 employees) of the users who have access to the systemcompleted at least one eLearning module in the past fiscal year, compared to 83% in
FY 2020/21. This continuous improvement is especially noteworthy, as in the pastfiscal year there were no global mandatory compliance trainings rolled out.
• 325 new eLearning modules have been added, and 463 classroom courses and 269
webinars have been offered on the platform. These were held both virtually andgradually also in face-to-face form. This reflects an increase in both eLearning (+44)
and classroom courses (+79) in comparison with the previous fiscal year. Of the new
training courses provided, 61% are product-related, which is a significant increase of
20% compared to last financial year.
• Combined, the compliance-related training activities (including those on the Code of
Conduct, antitrust, anti-corruption, and information security) had 7,939 participants,
making up 38% of all training completions. Many of these topics were introduced in
the past and continue to be assigned to new employees.

Outlook
Change management will continue to be an important part of our work in the new fiscal
year. We will focus on further nurturing the Change Agents Network and delivering skills
trainings needed for the successful implementation of the company strategy,
Shape4Growth.
Furthermore, we will increase cross-regional collaboration in training design anddeployment by establishing joint governance for trainings, in the form of the dormakaba
Learning Hub. It aims to create synergies by using standardized training content (with theoption to localize if needed) and utilizing the same technology and platforms, reducing thenumber of redundant applications. Finally, during FY 2022/23, all employees with access to
the LMS can have access to LinkedIn Learning.
In general, establishing dormakaba-specific eLearnings will play an essential role in reaching
many audiences on diverse topics. To date, the following eLearnings have therefore beenplanned:• As mentioned in our Diversity & Inclusion chapter, we are launching an eLearning forManagers - called Diversity & Inclusion at dormakaba - to create an understanding of
unconscious bias and how to foster a more inclusive culture. We will also offer
additional trainings such as Managing Micro Aggressions.
• Two global Sustainability eLearning courses to improve general understanding ofsustainability, and our commitment, framework, and targets.
• An eLearning on the company transformation through Shape4Growth, including the
new Vision, Purpose, and Mission.
• Regular release of Information Security-related micro-learnings as part of ourongoing efforts to stay vigilant on topics such as phishing and cybersecurity.

People34

dormakaba

Sustainability Report 2021/22

Diversity & Inclusion
We believe in the success of diverse teams and provide equal
opportunities for our employees. We value the uniqueness of each of
our colleagues and strive to create a culture where everyone can betheir authentic selves.
Our approach
We aim for a culture that encourages people to be their authentic selves and to sharediverse thoughts and opinions, which lead to better decision-making and innovation. Our
global presence and operations in various markets mirror our commitment to promoting adiverse and inclusive workforce. As our Code of Conduct states, we respect the equality ofpeople and cultures and we believe in the positive impact that the inclusion of a diverse
workforce can bring to the culture and success of our organization.

Becoming a signatory
to the UN Women's
Empowerment
Principles (WEPs)
Established by the UN
Global Compact and UN
Women, the UN
Women's Empowerment
Principles (WEPs) is a setof principles that guidebusinesses in fostering gender equality and women’s empowerment. The principles
include topics related to treating all women and men fairly at work and thereby
respecting and supporting human rights and nondiscrimination.
In FY 2021/22, our CEO Jim-Heng Lee signed the CEO Statement of Support, whichstrengthens our commitment to contributing to the UN Sustainable Development
Goals and to empowering our employees, so that they can unlock their fullpotential, regardless of their gender.
As signatories, we are committed to implementing the following seven principles:• Principle 1: Establish high-level corporate leadership for gender equality• Principle 2: Treat all women and men fairly at work – respect and support humanrights and nondiscrimination• Principle 3: Ensure the health, safety and well-being of all women and men
workers• Principle 4: Promote education, training, and professional development for
women• Principle 5: Implement enterprise development, supply chain and marketing
practices that empower women• Principle 6: Promote equality through community initiatives and advocacy• Principle 7: Measure and publicly report on progress to achieve gender equality

People35

dormakaba

Sustainability Report 2021/22

Our activities
In FY 2021/22, we set Group-wide targets to improve gender diversity within ourorganization. We aim to have one in three managers be female (19% in FY 2020/21) and toincrease the ratio of women in succession planning for senior management positions to
25% by 2027 (14% in FY 2020/21).
Besides women, we are also committed to supporting other minorities within ourorganization and to launching initiatives that further improve the inclusiveness of ourculture. The newly established network of global Diversity & Inclusion Experts is key in theimplementation of these initiatives. In May we launched workshops for senior management
teams on inclusive leadership and on how to build diverse and inclusive teams. Also in May,
we launched a LinkedIn campaign for Diversity Month, spotlighting dormakaba employees
from all over the globe and their take on diversity at dormakaba. In France, local HR started
discussions with employees on the topic of disability in the workplace, and they also
partnered with a specialized consultancy to analyze current practices and to learn about
possible solutions. Lastly, in Indianapolis (USA) we started to offer free beginner's andintermediate English courses to the increasing number of employees whose first language is
not English.

Strengthening gender diversity across the organization
During FY 2021/22, female employees across the globe had the chance to take partin events to grow and develop themselves both professionally and personally.
In Region Europe & Africa, the Female Leaders Network successfully completed two
waves of the Time to Grow mentoring program. A total of 37 female employees
were matched with senior leaders from the business and took part in mentoring
sessions to empower and guide them to achieve their career goals. In the UK, wehave launched a pilot for attaining an EDGE gender equality certification, a first forany dormakaba entity.
In Vittorio Vento (Italy), 20 female managers and non-managers from Key & Wall
Solutions took part in a training series to experiment with and embrace newperspectives in their relationships with others both on a personal and professional
level. The project has been a pilot for future trainings for female employees, aimed
at removing cultural hurdles to their professional growth and self-development.
The Project T.E.L.A. (Talenti rosa, Empowerment e Lavoro Agile - in English: Female
Talents, Empowerment, and Smart Working) has been partially financed by theEuropean Social Fund and the Veneto Region.
In March, for International Women’s Day, several activities took place across theorganization to raise awareness of the importance of gender equality and diversity.
On this day, the Women’s Network for the Americas was also established tofurther engage, connect, and develop our female colleagues.

People36

dormakaba

Sustainability Report 2021/22

PeopleOur performance
In FY 2021/22, female employees represented 29% of the total workforce. Across all
management levels, 20% were female (vs. 19% in FY 2020/21). Employees aged between
30 and 50 make up the majority (54%) of employees represented in this report.
Employees

OutlookIn early FY 2022/23, we will launch a global eLearning program on Diversity & Inclusion for
all managers, which we expect will be a key enabler in supporting higher rates of diversity
among hires and a more inclusive management style. We will also focus on awareness-

Information on the diversityof governance bodies canbe found in the ESG
Performance Table

raising for all employees by establishing an Info Hub with communication materials on
Diversity & Inclusion.
We will also research best practice for parental leave policies to see how we could improve
our offering, evaluate recruitment practices, and recommend improvements for attracting
and selecting more women, as well as further expanding Female Networks including
gender-specific development and coaching.
In the UK, we will keep focusing on the EDGE certification project for gender equality, which
was launched in May 2022 as a pilot. In France, the steering committee for Disability in the
Workplace will continue to define the priority actions to improve our practices in this field.

ESG Performance Table

37

dormakaba

Sustainability Report 2021/22

Occupational Health & Safety
Throughout our business and most especially at our manufacturing
sites worldwide, we respect the human right to safe workplaces.
Our approach
All workers share the human right to safe and healthy working conditions, and as an
employer we do our utmost to protect the physical and mental integrity and well-being of
our employees. Accidents and work-related illnesses can be of a long-term nature andentail costs to society and the company. We can only be successful in the long term if we
help ensure our employees remain healthy. Occupational Health & Safety (OHS) addresses
not only the safe operation of machines, ergonomic workplaces, and the handling of
hazardous substances, but also mental health issues including stress, depression, andemotional well-being. We strive to simultaneously create optimal working conditions for our
employees and to ensure operational efficiency.

Our activities
We have already put in a lot of effort to provide a safe workplace. Injuries can still occur inand around our facilities, including cuts, stumbles, commuting accidents, burns in smelting
operations, injuries due to heavy lifting, or exposure to toxic fumes in galvanization
processes. Currently, we have location-specific systems in place to align with national
regulations and standards, as well as ISO 45001 certifications at larger manufacturing
facilities. Our goal is that by the year 2027 we will decrease the recordable work-related
injury rate by 33% (baseline 1.4 in FY 2020/21).

Risk analysis andpreventative actions
We have been using root
cause analysis of injury
incidents globally toidentify and implement
the corrective actions
necessary to prevent
repeat incidents. A

Inside a dormakaba manufacturing sitefurther example of preventative processes is the Corrective Action Read Across
Program in the Americas, initiated in FY 2021/22 with the goal of reducing potential
injuries by implementing corrective actions regionally. All investigations into
recordable injuries are assessed to determine whether the corrective actions may
be applicable at other locations. The key idea behind the program is that every
injury is an opportunity to prevent the same thing from happening in the future atother locations.

“A critical component in any injury investigation is the implementation of effective
corrective action. Many of our locations have similar processes, equipment, andconditions where the same injuries could also happen. The Corrective Action Read
Across program has strengthened our safety culture in the Americas. Within thefirst year of implementation, we have already deployed over 35 corrective actions
throughout our facilities.” - Kristin Jarrett, AVP EHS Region Americas.

To ensure our employees remain healthy, dormakaba focuses on three areas:
1. Employee engagement and training
2. Reducing hazardous materials
3. Designated safety personnel and safety committees

People38

dormakaba

Sustainability Report 2021/22

Employee engagement and training
To identify and address our health and safety risks, employee engagement is crucial. Our
employees are encouraged to report challenges and near misses in order to address theserisks. Several regions, for example, regularly train employees to report near-miss incidents
that have a potential for injury or property damage in an effort to be proactive. This
program helps employees recognize hazards or unsafe acts and to correct them
immediately or to ask for support to correct the issue. Near-miss reports are given thesame emphasis and attention as injury reports, and the respective supervisor follows up
with the near-miss to ensure it is corrected.

Proactively reporting
safety suggestions
Across many sites, wehave employee
engagement programs inplace that motivate
employees to identify andreport any near-missincidents, unsafe acts andconditions. For example,
in Melaka (Malaysia) wehave Hazard
Identification Tags, in
Singapore we have the
STOP for Safety Program

A dormakaba employee in front of corporate gifts they canchoose from, in return to submitting safety suggestions.

and in Nogales (Mexico)
the Improvement Ideas Program to motivate employees to submit their safetysuggestions and their ideas are rewarded.
The similar Me Safe Program in Dyersville (USA) also collects employee ideas, which
are evaluated by the local EHS Coordinator. Once approved, actions are
implemented, and the employee gets immediate recognition. Between July 2021
and April 2022, 320 suggestions were submitted in Dyersville, resulting in a drop in
the Total Case Incident Rate from 8.8 to 4.7.

“We want everyone to be involved in the safety process by helping identify hazards
and making recommendations to improve safety. The employees in the
manufacturing area understand the process best and often have the greatest
ideas. The Me Safe Program gives employees a voice that is heard and also helps toimprove the communication between management and manufacturing. Safety is
one thing we all have in common and an interest in seeing it succeed." – Kerry
Bartlett, EHS Engineer at Modernfold in Dyersville.

During FY 2021/22, we launched several health and safety trainings locally. These included a
CPR training in Singapore with 56 participants, a general health and safety training at all
locations in Sweden for about 100 participants, safe driving courses and emergency
trainings on fire control, evacuation, and first aid in Spain and Portugal, as well as training
on potential health and safety risks and the implementations of 5S practices in San Jose
(USA).

People39

dormakaba

Sustainability Report 2021/22

Reducing hazardous materials
The potential impact on employees’ health when working with hazardous materials is of
special concern, and we seek to eliminate or reduce their use as much as possible.
Hazardous materials are used as cooling lubricants, oils in machining, and for the cutting of
raw materials. Some hazardous materials are used to protect materials from corrosion in
the electroplating area as well.
Key activities during FY 2021/22 included:• In Melaka (Malaysia), HMT-11 has been replaced by the less harmful LK-11 during themetal treatment process. Furthermore a dust collector system has been
implemented. As a result of the replacement, chemical exposure monitoring showed
0.046 mg/m 3 , which is considerably less than the permitted exposure limit (10.0 mg/
m 3 ).
• In Suzhou (China), a solvent-based tetrachloroethene (PERC) component washingmachine has been replaced by a water-based one, avoiding 20 tons of PERC annually.
Another key project at the site was the renovation of the closers washing machine (Ydegreasing), which included the installation of a new distillation machine and a chiller
device. The main function of distillation is to remove oil from PERC and to ensure agood cleaning quality. The oil removed from the distillation machine is disposed forspecial treatment by a qualified third party. As a result of this upgrade, we were able
to reduce PERC consumption by an additional 20 tons (from 35 to 15 tons).
• In Rocky Mount (USA), the hydrochloric acid was replaced by pre-mixed boric acidsalt, which reduced the chemical handling hazard, improved the quality of the
product plating, and even reduced product scrap.

Designated safety personnel and safety committees
dormakaba employs designated safety personnel and safety committees in order to ensurethat workers comply with company policies and government regulations. These forums also
facilitate communication and cooperation between management and personnel. The key
responsibilities of the committees are to define and review safety strategies, policies andmetrics, discuss incidents, and disseminate safety information.

People40

dormakaba

Sustainability Report 2021/22

PeopleOutstanding Health &Safety results indormakaba España
Good action plans andprocesses, clear
communication, employee
engagement, and the
support and commitmentof the management teamare key to achieving
positive health and safety
outcomes. A dedicatedA dormakaba facility in Spainteam in Spain and Portugal strive to create optimal working conditions for theirapproximately 160 employees. Below are some of their key activities andachievements:• Accidents and injuries must be reported in the dedicated system and analyzed on
the same day. Both local management and employees are informed of the issue
and the possible corrective actions to prevent similar situations in the future.
• They regularly launch health and safety trainings, for example on safe driving
habits and emergency topics, like fire control and evacuation.
• At the beginning of each meeting at the Iberian sites there is a “safety first”
discussion, including KPIs and their status. Moreover, employees can access a
dedicated online platform for health and safety information, and they can alsocollaborate by sharing improvement ideas through an email account.
• Before moving to a new location in Valencia, the team ran ergonomic evaluation
studies both on physical load and the adequacy of machines. The workstations in
the new facility were defined according to the results of the study. A conveyor
belt was designed especially for this location to increase productivity and reduce
discomfort at the same time.
• In March, dormakaba España was certified with the ISO 45001 standard, and thesite already had a plan in place to go beyond the requirements of thecertification, through detailed internal audits and risk assessment updates.
• dormakaba España goes beyond its responsibility for its own employees and has
started a collaboration with key installation partners to improve their health andsafety systems, thereby contributing to customer health and safety too.

Our performance
Among all our reporting sites – including offices – 28% have a health and safety
management system certified according to ISO 45001, and 71% maintain a health andsafety management system. For these sites, health and safety training goes beyond the

87% of our employees arecovered by a health &safety management systemmandatory requirements to include emergency and risk prevention. For example,
assessments of repetitive movement and heavy load-lifting, to prevent work-related
illnesses, take place at various sites.

ESG Performance Table

41

dormakaba

Sustainability Report 2021/22

In FY 2021/22, 198 occupational injury cases were registered, compared to 186 in theprevious reporting year. This is a recordable injury rate of 1.5 compared to 1.4 in the previous
reporting year 1 ) . Of these, 92 cases were expected to result in more than three days of lostworking time. Cuts and bruises were the most common types of injuries, and most injuries
were sustained to the arms and hands. Most accidents occurred in production plants, withthe second highest occurring during installation or service at customer sites. The mostcommon root cause has been reported as lack of concentration. Through our global injury
incident reporting tool, we have tracked over 268 corrective actions being launched in FY
2021/22. The majority of corrective actions have been organizational safety measures.
There were no fatalities as a result of work-related injuries, nor were there any highconsequence injuries reported.
1)

Recordable work-related injury rate = number of recordable work-related injuries / number of hours
worked x 200,000

Outlook
Our focus in FY 2022/23 will be the reduction of injury rates across 45 locations by 5.5%
versus the previous year. This includes initiatives such as behavior-based safety awarenesstraining, the formalization of monthly safety audits, and Hazard Walk-throughs at the
manufacturing plants. Some locations will focus on improving protective personalequipment or changing work processes to reduce manual handling, including implementing
semi-automated polishing processes.

People42

Sustainability Report 2021/22
Planetdormakaba

Sustainability Report 2021/22

Energy & Emissions
We are demonstrating leadership in the transition to a low-carbon
economy within the industry and beyond.
Our approach
The emission of greenhouse gases (GHG), which are generated through the burning of fossil
fuels, is one of today’s biggest challenges. Every business, government, and individual has arole to play in meeting the goals of the Paris Agreement. We understand the risks posed byclimate change, and we take action to reduce our energy consumption and related
emissions for a low-carbon economy. We use the latest scientific knowledge to guide asound management approach, and our emission reduction targets have been validated by
the Science Based Targets initiative (SBTi).
Our energy consumption and GHG emission reduction program is part of our global
Environment Directive. Furthermore, our Expert Groups Environment, Health & Safety, andSustainable Products are developing and implementing initiatives to achieve the related
targets. One such target is the establishment of energy management systems at our
manufacturing sites, which is key to managing and reducing our energy consumption. As at
30 June 2022, 67% of our plants, local assembly centers, and regional logistic centers haveestablished energy management systems (vs. 21% in the previous financial year).

Our contribution to the fight against climate change
In 2018, we committed to setting science-based targets and in 2021, the SBTi approved ourtargets for operational and value chain emissions. We aim to reduce operational (Scope1+2) emissions at least 42% in line with a 1.5°C future by 2030, without the use of carbon
offsets (baseline 74,770 tCO 2 e in FY 2019/20). Any residual emissions will be voluntarily
compensated through Gold Standard offsets to achieve our target of becoming carbon
neutral as of 2030. We also aim to reduce our value chain emissions (Scope 3) frompurchased goods and services, and the use of sold products by 25% by 2030 (baseline
1,124,936 tCO 2 e in FY 2019/20). Progress against the operational emissions target is being
tracked as part of our sustainability-linked credit facility.
Many components used to create our products are manufactured in-house throughprocesses including melting, aluminum and zinc die casting, and purchased parts also
require further processing. Both of these processes impact total energy demand. As aresult, we are focusing many of our energy-saving initiatives in this area. In line with ourscience-based emission reduction targets, we aim to reduce the energy intensity of ouroperations by 25% by 2030 (baseline 100.5 MWh/mCHF in FY 2019/20).
To achieve our ambitious targets, we are focusing on the following activities:• Investing in energy efficiency projects• Increasing on-site production of solar power• Purchasing electricity from renewable sources• Electrifying our fleet• Improving the energy efficiency of our products in the use phase• Working with suppliers to reduce their emissions

Our performance
Greenhouse gas emissions
In FY 2021/22, our total greenhouse gas (GHG) emissions (Scope 1+2) amounted to around69,000 tCO 2 e. More than 55% were emitted as a consequence of electricity consumption,
followed by vehicle and heating fuel consumption, and volatile as well as process gas
emissions. Climate-related initiatives implemented during the reporting year resulted in
total annual savings of approximately 17,400 tCO 2 e (over 25% of Scope 1+2 emissions).

Planet44

dormakaba

Sustainability Report 2021/22

PlanetDue to the implementation of the energy-saving initiatives outlined in the next section, we
expect to reduce our annual GHG emissions by approximately 430 tCO 2 e. We have worked
diligently to source renewable electricity or generate our own renewable energy where
feasible, leading to an annual emissions avoidance of approximately 17,000 tCO 2 e. In
addition, we expanded the production of on-site solar energy by 10%.
Greenhouse gas emissions by source (tCO 2 e)

1)

Scope 1 and Scope 2 emissions (tCO 2 e) 1)

Greenhouse gas inventory calculated in accordance with the WRI/WBCSD Greenhouse Gas Protocol.
Emission factor sources: UK Defra (2019), US EPA eGRID (2018), IEA (2019), AIB (2018).

2) Scope 1: direct greenhouse gas emissions from sources owned or controlled by dormakaba.
3) Scope 2: indirect greenhouse gas emissions from sources owned or controlled by another entity, as aconsequence of the company’s activities.
4) Biogenic emissions associated with the combustion of biofuel amount to 15 tCO 2 e. These are called"outside of scopes" emissions and reflect the impact of burning biomass and biofuels. The fuelsource itself absorbs an equivalent amount of CO 2 during the growth phase to that released
through combustion.
5) The greenhouse gas emissions associated with electricity consumption are reported according to the“market-based approach”, as defined in the Greenhouse Gas Protocol Scope 2 Guidance.

Year-on-year absolute Scope 1+2 emissions (tCO 2 e)
For historical and moredetailed emissions data,
view the ESG Performance
Table.

ESG Performance Table45

dormakaba

Sustainability Report 2021/22

Further expansion ofsolar power generationin Chennai
A key element of ourclimate transition
strategy is to expand thescope of solar panel
installations, particularly
in regions where green
electricity is not readily
available on the market.
Our manufacturing
facility in Chennai (India)

dormakaba employees on the rooftop of the manufacturing
facility in Chennai (India)

had already installed solar panels on the roof in FY 2018/19. In the reporting year,
the installation was expanded to generate 200% additional capacity. Today, thesite can cover 25% of its total energy needs from own renewables.

“In line with dormakaba's commitment to contribute to a sustainable industry andfuture, we have taken steps to reduce the carbon footprint of our operations inIndia progressively. Our additional investment in solar panels further fortifies this,and we are becoming less dependent on fossil fuels and embracing this renewablesource of energy.” - Krishna Kumar Kp, Deputy Vice President Operations Region
Asia Pacific.

Scope 3 emissions constitute around 90% of our combined Scope 1, 2 and 3 carbon
emissions, highlighting the importance of Scope 3 emissions for our climate strategy. In FY
2019/20, we carried out a screening and carbon inventory development of Scope 3
emissions, which showed that the largest sources of Scope 3 emissions stem frompurchased goods and services (75%) and the use phase of sold products (11%). For FY
2021/22, value chain emissions for the use phase of products totaled 263,700 tCO 2 e. As
mentioned, value chain emissions from purchased goods and services represent the vast
majority, totaling 868,300 tCO 2 e in the reporting period. Although emissions frompurchased goods and services have decreased, improvements in data collection systems including in the precision of country-level sales figures - have led to an increase in Scope 3
emissions as a whole (+0.62% versus baseline FY 2019/20).

Planet46

dormakaba

Sustainability Report 2021/22

Scope 3 emissions: purchased goods and services (tCO 2 e) 1, 2)

Scope 3 emissions: use phase of products (tCO 2 e) 3)

1) Calculated via direct material weight. Emission factor sources: UK Defra(2019), US EPA eGRID (2018), IEA (2019), AIB (2018). 2) Calculated via
spend volume.

3) Calculated via energy consumption during the use phase. Emission
factor sources: UK Defra (2019), US EPA eGRID (2018), IEA (2019), AIB(2018).

PlanetYear-on-year absolute Scope 3 emissions (tCO 2 e)
We reduce value chain
emissions among others by
procuring more goods withhigher recycled content andby improving the energy
efficiency of our products.
Life cycle assessments andour digital ProductCO 2 Inventory Tool are key
to understanding andreducing our impact.

Learn more

Energy consumption
Our total energy consumption for FY 2021/22 was over 254,000 MWh. Electricity and fuels
for heating or manufacturing constitute over 76% of the total energy consumption and playa crucial role in our production processes. Fuel consumption of our vehicle fleet makes up
for the remaining energy consumption.
Energy-saving initiatives were implemented at various sites within the reporting coverageduring FY 2021/22. This work included: retrofitting facilities to feature LED lighting andmonitoring systems; upgrading equipment such as air compressors, air heaters and air
dryers; and the optimization of heating and cooling systems.

47

dormakaba

Sustainability Report 2021/22

Below are some specific examples of activities from our facilities across the world:• In Fougères (France), by replacing one air heater, the energy consumption reduced
from 600 to 356 MWh/year.
• In Suzhou (China), the replacement of an old air compressor reduced energy
consumption by about 15%.
• At our Melaka (Malaysia) facility, retrofitting with LED lighting and the regulation of
the cooling fan and pump operations from 100% to 65% daily, resulted in a reduction
in electricity consumption of 7,689 kWh/year and 19,625 kWh/year respectively.
• At our facility in Singapore, an energy monitoring application for the air conditioning
system was implemented, reducing the system's energy consumption by 25% versus
the previous financial year.
As a result of these and other activities, we realized total quantifiable annual energy
savings of approximately 2,700 MWh for the sites covered within the scope of this report.
In addition, over 58,000 MWh (46.4%) of the electricity that we consumed came fromrenewable sources.

Focusing on energy
efficiency and carbon
savings potentials
globally
Part of our commitment
towards a 1.5°C future isto reduce our operationalemissions by 42% by 2030
(baseline 74,770 tCO 2 e indormakaba production site at Melaka, Malaysia

FY 2019/20). To reachthis goal, we started a Value Discovery Audit process in partnership with Siemens
at 10 of our largest manufacturing sites (Taishan (China), Chiayi (Taiwan), Rocky
Mount (USA), Dyersville (USA), Indianapolis (USA), Montreal (Canada), Quebec(Canada), Melaka (Malaysia), Singapore, and Suzhou (China)).
The aim of the partnership is to execute projects based on audits to discover energy
efficiency and carbon savings potentials, to maximize energy and CO 2 savings byimplementing the right strategies and measures for the unique site. Siemens, incooperation with dormakaba employees, identified efficiency and savings
opportunities, ranging from low-cost operational improvements and control
optimization approaches, to capital-intensive equipment retrofits with an emphasison the highest priority conservation initiatives.
The Value Discovery Audit has been successfully closed at the ten sites, resulting ina discovered potential reduction of over 4,000 tCO 2 . To reach our 42% reduction
target, further initiatives are planned to fill the gap, including the electrification of
the fleet, and green electricity projects.

Planet48

dormakaba

Sustainability Report 2021/22

Energy use (in MWh)

Electricity by source (in %)1) Including own generation

Outlook
One of the major areas of work in the upcoming financial year will be the continued global
partnership with Siemens to support the development of Investment Grade Audits forlarger plants in Asia and the Americas. We expect the installation of more energy-efficientequipment to begin in the second quarter of 2023.
To support the transition to e-mobility in Germany, we will install 25 EV charging stations at
our sites and 100 charging stations in employees’ homes. Additionally, solar panels will be
installed on the rooftops of two large manufacturing sites in the Region Asia Pacific. Finally,
13 sites will complete the set-up of energy management systems.

Planet49

dormakaba

Sustainability Report 2021/22

Circular Economy & Materials
We are accelerating circular solutions to develop material-efficient,energy-efficient, high-quality products that reduce our customers’
environmental impact and meet the needs of a sustainable built
environment.
Our approach
We live in and depend on an interconnected world, with complex environmental, social,economic, and cultural systems. Damaging one element may cause unexpected impact
elsewhere. We understand the limits of our planet and that we must act more sustainably
in order to meet increasing social and economic demands. As a leading manufacturer,
dormakaba is committed to incorporating the latest product life cycle approaches andenvironmental technologies to continuously advance our product development and improve
our own as well as our customers’ sustainability performance. This not only provides newopportunities for our design and manufacturing processes; it also addresses our customers’
expectations regarding environmentally friendly products.
Our Group-wide Environment Directive regulates minimum business standards inmanufacturing practices, product circularity, and eco-design, including material selection
and the energy efficiency of the product use phase. The dormakaba sustainability
commitment and life cycle approach are also integrated into the company’s Product Design
Manual.
A circular economy provides solutions for some of the key global challenges by eliminating
waste and pollution and circulating products and materials.
Our Circularity Approach

Planet50

dormakaba

Sustainability Report 2021/22

PlanetOur activities
Product design with the circular approachWith an average life span of 40 to 50 years, buildings should ideally be constructed in a waythat allows the required materials and natural resources to be used efficiently. We arededicated to producing high-quality and reliable products and solutions, while also
integrating our customers’ desire for environmentally friendly options. As a result, productLearn about our activities
and key results regarding
value chain emissions(Scope 3) from purchased
goods & services, and theuse of sold products.

design remains a core focus of our sustainability strategy, with an emphasis on energy
consumption and carbon emissions during the product’s use phase, waste management,
and recyclability at its end of life.
Our sustainability commitment and sustainable design criteria are integrated into our
Product Design Manual, which is binding for all new dormakaba-branded products. By
2023, we plan to cover all new product developments and optimizations with our circularity
approach.
Life Cycle Assessments (LCA) provide a reliable calculation of the environmental
performance of a product. This includes the systematic assessment of the environmental
impacts arising during the extraction of raw materials, through production, distribution,and use phases, which are quantified based on materials, energy consumption, transportroutes, emissions, and the life span of the products.
There are two LCA approaches: cradle-to-gate and cradle-to-grave. The first approachconsiders all production stage modules: raw material supply, transport, and manufacturing.
The latter covers all life cycle modules, which means that in addition to the cradle-to-gatestages, cradle-to-grave analyzes the building construction process, the product use stage,and end of life (i.e., the upstream value chain). We mainly use cradle-to-gate “with options”
so that we can select the relevant upstream life cycle module(s).

Energy & Emissions

51

dormakaba

Sustainability Report 2021/22

Digital energy
calculator for the
product use phase
In terms of primaryenergy consumption, thebuilding sector is one of
the largest energy users
in the world – as a result,its influence on climate

The energy-efficient ST PRO Green RC3 sliding doorchange is enormous. Therefore, we have set a target of having best in class energy
efficiency for new products by 2023. In FY 2021/22, we launched the ST PRO GreenRC3 in the Austrian and Swiss markets, for example, which is a new, energy-saving
automatic sliding door with a thermally separated profile system that reduces
energy loss in the building due to a very low heat transfer coefficient.
Our digital Product CO 2 Inventory Tool provides information on the carbon
emissions of energy-consuming products during their use phase. This supports
product development and optimization activities to create more energy-efficient
products and also contributes to our target of decreasing Scope 3 emissions fromthe use phase of sold products.
The Product CO 2 Inventory Tool includes the footprint of around 350 products that
consume energy after installation, including those that are battery-operated orconnected to the electricity grid. Through the tool, our Product Managers andEngineers are able to continuously check and improve data quality based on
product parameters, easily make updates to include new products, and have abetter understanding of where the biggest impact is taking place.
The tool collects information for example about the products’ lifetime, the numberof operating days per year, energy consumption and related features. The
parameters are in line with requirements found in the Environment Directive (seesection B.9). Based on the number of sold products and country-specific emission
factors, we are able to determine the greenhouse gas emissions for the whole
lifetime of a product. Our calculation method is in line with the GHG Protocol.

Designing environmentally friendly packaging
For the packaging of our products, we mostly use plastic, wood, paper, and cardboard. It is
our aim to substitute packaging materials with more sustainable alternatives. By 2027 wewant to use zero fossil-fuel based plastic in our packaging (baseline 223 tons in FY 2020/21)
and 100% of paper, wood, and carton used should stem from Forest Stewardship Council(FSC)-certified sources. We have started exploring possibilities, and at our Vittorio Veneto(Italy) manufacturing site, it is already the standard to use FSC-certified packaging.

Planet52

dormakaba

Sustainability Report 2021/22

Providing transparent information about our products
As of early 2021, components imported or sold in the European Union, with Substances ofVery High Concern (SVHCs) in a concentration higher than 0.1% must be reported in theso-called SCIP Database, created by the European Chemical Agency. To be compliant with
European regulations, we are continually uploading the required data on SVHCs to the SCIP
database. Furthermore, we adhere to the requirements of the RoHS Directive 2011/65/EU,
which restricts the use of certain hazardous substances in electrical and electronicequipment.

Product declarations and green building certifications
We quantify and disclose a product’s environmental impact through its entire life cycle in
our Environmental Product Declarations (EPDs), which are based on the international
standards ISO 14025, 14040, 14044 and the European standard EN 15804. Our EPDs meetall mentioned standards to ensure that our environmental information is transparent,
reliable, and credible.
dormakaba also offers various health-related product declarations which transparently
account for the materials found in our products. These take the form of Health ProductDeclarations (HPDs) or Building Product Declarations (BPDs), depending on local market
requirements.
By 2027, we aim to double our sustainability-related product declarations/certifications,
including Cradle to Cradle and for recycled content (baseline 170 in FY 2020/21). To date,
we can provide our customers with 200 such declarations and certifications. By providing
transparency regarding our sustainability performance, we secure our market position andoffer added value to customers seeking green building certifications.
Product information from environmental or health-related product declarations cancontribute to Building Information Modelling (BIM) and specifications or help attain thehighest levels of green building certifications, such as Leadership in Energy andEnvironmental Design (LEED). dormakaba publishes the product information oninternationally recognized sustainability platforms such as the Sustainable Product
Information Module (SuPIM) by the Institut Bauen und Umwelt (IBU). SuPIM provides all
product-related sustainability data from the manufacturers for various building
certification systems such as DGNB, BNB, LEED, and BREEAM. These are compiled in adata sheet and supplemented by the corresponding verification documents. For quality
assurance purposes regarding the underlying documents, IBU offers manufacturers areview of the entered data.
Such databases provide transparent environmental and health information for users andensure easy access to specific product data. By providing this level of product information,
we seek to lower market entry barriers in the green building industry, enabling our inclusion
in related bidding processes.

Planet53

dormakaba

Sustainability Report 2021/22

PlanetProduction with lower environmental impact
At dormakaba, we recognize that environmental responsibility is integral to producing
world-class products. Besides adhering to environmental laws and regulations, we focus on
improving our management of environmentally relevant processes and on monitoring andreducing our energy consumption, carbon emissions, water consumption, and effluents, as

Activities and key results
regarding carbon emissions(Scope 1 & 2) and energy
consumption during
production.

well as monitoring our waste disposal and recycling rates.
Energy & Emissions

Responsible use of materials
Among the raw materials we use for our products, there are metals such as steel, brass,aluminum, nickel silver, and zinc, as well as gypsum board, glass, and plastics. Since theHistorical information onmaterial use.

primary extraction of metals from ore and the subsequent refining processes are resourceintensive, one key focus is to increase the use of metals with high recycled content. Other
important materials are wood, paper, and cardboard, which are made from renewable
resources.
Material use (in %)Raw material use (in %)ESG Performance Table

54

dormakaba

Sustainability Report 2021/22

Successful substitutionof materials with leadcontent
The heavy metal lead (Pb)
is often used as a minor
addition to alloys found incomponents of our
products, to improve theirmechanical properties.
This allows better andmore efficient machining
and cutting, and thus
plays a key role in our
production processes andin the quality of ourfinished products. It ischallenging to substitute

Brass has been substituted by eco-brass in the dormakaba
Lock Series 122

it, and we are continuously searching for solutions by taking part in industry-wide
discussions and through own R&D.
In the previous year, Key & Wall Solutions redesigned several steel components withhigh lead content and started the sale of lead-free steel keys in the Region Europe& Africa. During FY 2021/22, we were able to substitute brass with eco-brass in one
component of our Lock Series 122, after thorough examination of this material’s
specifications, including strength, elasticity, color, weight, and external testing. We
are planning to substitute other small parts in several other products within our
portfolio, as we have done for the c-lever coupling system.

Several production sites focus on closed-loop systems in their material use. The
manufacturing facilities recycle most internal scrap metal, either back into their own
processes or by selling it to a local approved recycler. Scrap material is also sent back to theoriginal producer, who then uses it to make our purchased materials, resulting in a closedloop system. Examples include:• For over six years, the production facility in Vittorio Veneto (Italy) has had over 70%
of produced scrap going back into its closed-loop system.
• The facility in Taishan (China) reuses zinc alloy scrap in the die casting process, while
in Melaka (Malaysia), aluminum chips are remelted in the foundry for reprocessing.
• In Suzhou (China), the wooden pallets in which door closers arrive from Melaka(Malaysia) are reused for delivering other products to Singapore (approximately 610
pieces per year), where they are used for internal processes or provided to local
suppliers, who use them to deliver other components back to the Suzhou plant. The
Singapore team is investigating how to eventually circulate the pallets back to the
Melaka plant.

Planet55

dormakaba

Sustainability Report 2021/22

PlanetWaste management
In addition to water consumption and effluents, waste management is of key importanceduring the electroplating, surface finishing, and painting processes. Our filter systems
ensure that potentially hazardous substances are not released externally. Toxic waste
arising from painting and electroplating is disposed of as special waste. Certified disposal
companies are commissioned to dispose of industrial waste and chemicals, and to recycle
materials.
The generation of different waste streams is an inevitable consequence of our operations,although by implementing the circular economy approach, we aim to send zero waste tolandfill in our operations by 2027 (baseline 3,443 tons in FY 2020/21). We monitor our wasteby treatment method and waste type. At 74.6% by weight, the largest proportion of waste
is scrap metal. In FY 2021/22, approximately 73% of the waste stream was recycled, reused,

We respect the universal
human right to safe andclean drinking water andsanitation. Learn about ouractivities and key results
regarding water andeffluents management.

or recovered (including raw materials and energy recovery). In Dyersville (USA), for example,
the wood sent to landfill has been decreased by 40%, as a result of the replacement ofwooden crates with returnable containers, in which they receive glass from a supplier. In Le
Mesnil St-Denis (France), waste is separated into nine categories. Today, approximately
95% of the waste generated on site is sorted according to these categories. Recycling is
processed by specialized and certified companies, one of which employs people withdisabilities or who are socially disadvantaged.
Non-hazardous waste by type

Hazardous waste by type(in metric tons)(in metric tons)

Human Rights

56

dormakaba

Sustainability Report 2021/22

Waste by treatment path*

Waste intensity(in metric tons)(t/mCHF net sales)*On-site storage includes waste that is temporarily stored at the premises before being
directed to treatment/disposal

Take-back programs
All of our products have a long life span of up to 20 years, but their purpose should not end
after deinstallation. Some of the components of our products can be reused, repaired, orreintroduced as raw materials back into the manufacturing cycle.
Collecting products and components from customers and partners requires collaboration
between various dormakaba departments. Logistics, quality management, productdevelopment and production are all important functions that should be involved. Take-backprograms have multiple benefits, such as stronger customer relationships, alternative
supply of critical raw minerals, mitigated risks associated with hazardous materials
handling, reduced environmental impact, and cost savings.
By 2027, we plan to offer extended producer responsibility take-back schemes for all
products and packaging in ten top sales countries. During FY 2021/22, we started thedevelopment of a pilot program in Switzerland and Austria for locks and cylinders.

OutlookDuring the next financial year, we will focus on the following activities:• We have identified further products for which we will develop sustainability-related
declarations/certifications, including pre- and post-consumer recycled content
certifications. Additionally, we will develop circularity guidelines for new productdevelopments.
• Together with an external consultancy, we will develop further benchmarks for highrecycled content and energy efficiency.
• Our leadership teams in nine out of the ten top selling countries will develop detailed
four-year action plans for launching take-back programs and to evaluate local
recycling companies for partnerships.
• Lastly, 33 manufacturing sites will develop detailed zero waste to landfill action plans,
showing how they will achieve a 25% reduction per year starting in FY 2023/24.

Planet57

Sustainability Report 2021/22
Partnerships

dormakaba

Sustainability Report 2021/22

Partnerships

Supplier Sustainable Development
To further develop partnerships in the supply chain based on
responsible business behavior, we are engaging our suppliers andtrading partners in our endeavor to foster sustainable development.
Our approach
We believe sustainable supply chains ensure the well-being of the people and environments
they procure from, as we seek to grow our business through ethical and legal businesspractices. We are therefore committed to leveraging our purchasing power to benefit thosepartners whose values align most closely with ours. Furthermore, the rise of supply chaintransparency legislation points to the increasing mandate that a company must be awareof the economic, environmental, and social dimensions of its supply chain, and that it must
proactively monitor and manage those dimensions.
The dormakaba Supplier Code of Conduct (SCoC) outlines our requirements with regard tohuman rights, fair working conditions, environmental responsibility, and business ethics,
among others. It is integrated into our online bidding system and is also part of ourstandard supplier contracts.

Our activities

Download the dormakaba
Supplier Code of Conduct

Our global supply chain is large and complex, which poses a challenge in this regard. Global
procurement volumes with external vendors, excluding inventory, correspond to
approximately 32% of total sales, making the company’s procurement strategy highly
relevant to achieving our financial and sustainability targets. The number of active suppliers
for goods and services is approximately 21,000, with spend focused in Europe (45.7%),
North America (27.4%), and Asia (22.6%).
Supplier Sustainable Development is one of the strategic topics in our Sustainability
Framework 2021–2027, for which we have set ambitious targets. By 2027, we aim to:• assess all high-risk suppliers for their sustainability management by a third party or
off-board them for lack of participation• have at least 45% of our high-risk suppliers participate in our sustainability
engagement program• close at least 80% of high-priority corrective actions by assessed suppliers• have 90% of assessed suppliers with priority findings complete a sustainability
training• provide information regarding conflict minerals for high-risk suppliers.
To ensure our suppliers contribute to social and environmental well-being, dormakaba
focuses on five areas:
1. Identifying supply chain risks
2. Supplier off-site assessments
3. Supplier on-site audits
4. Training of internal and external stakeholders
5. Procedures in case of non-participation or non-compliance

Identifying supply chain risks
dormakaba has defined a target group for sustainability assessments based on identified
sustainability risk factors – such as origin country and the material content of the goods
procured. The latter refers to material compliance topics that are included in the European
Union’s REACH regulations and RoHS Directive. Suppliers over a certain procurement
threshold were taken into consideration as part of the categorization work.
To determine sustainability risk factors on a country level, an impact assessment andhotspot analysis were used as a baseline. The hotspot analysis identified the following
sustainability topics as being of highest relevance in the supply chain: (1) Energy and

Download59

dormakaba

Sustainability Report 2021/22

Partnerships

Emissions; (2) Effluents and Waste; (3) Occupational Health and Safety; (4) Materials; (5)Training and Education; (6) Freedom of Association; (7) Human Rights. For these highimpact topics, any supplier from countries listed as high-risk was included in thesustainability target group for assessment. The high-risk group includes approximately 10%(2,089) of our Tier 1 supplier base, both for direct (e.g. material goods) and indirect (e.g.
services) spend.
Supplier categorization for sustainability assessment

Supplier off-site assessments
Since 2019, we have been working together with EcoVadis, a leading provider formonitoring sustainability in global supply chains, to reduce supplier risk and support supplierdevelopment. The assessment covers 21 sustainability criteria across four areas(environment, labor and human rights, ethics, sustainable procurement).
We apply a comprehensive self-assessment for all potential new suppliers as part of the
supplier qualification process. The self-assessment questions related to sustainability are
regularly assessed and improved based on changes to our sustainability strategy andregulatory trends.
In FY 2021/22, we engaged over 400 high-risk suppliers and asked them to participate in
the EcoVadis assessment. The positive participation rate was 28%. Of the 117 suppliers witha completed rating as at 30 June 2022, 33% achieved a bronze, silver, gold, or platinum
rating by EcoVadis, considered as moderate or advanced performance. However, themajority of assessed suppliers (54%) had only partial performance, with an additional 14%
considered to have insufficient performance.
Since the launch of our collaboration with EcoVadis, 18.7% of our high-risk suppliers havebeen assessed. Improvement plans for 234 suppliers were requested because of theassessment results and 52% of these were closed during this reporting year. Furthermore,
six business relationships were terminated and two suppliers were blocked from new
business.

We invited over 400 highrisk suppliers from our Tier 1
group to participate in the
EcoVadis assessment in FY
2021/22.

60

dormakaba

Sustainability Report 2021/22

Overall score distribution **All EcoVadis-rated dormakaba suppliers since 2019

Supplier on-site audits
To examine our suppliers’ situation on-site, we developed a standard audit questionnairethat contains topics related to quality management. Among these, sustainability topics
such as internal Code of Conducts (CoCs), the dormakaba SCoC, and labor, health andsafety, and environmental standards are checked. Auditors are asked to checkdocumentation on-site related to:• Workers’ ages and identity records• Receipt of wages• Training and communication on internal CoCs
• Signature of the dormakaba SCoC
• Hazardous materials storage and worker training on safe handling• Injury rates• Development of water, energy, and waste metrics over recent years.
As on-site audits require immense effort and cost, we have introduced a risk assessment
process that takes into account the potential risk of specific locations, products, andperformance. This risk assessment results in a score ranking, indicating the frequency ofauditing required for the relevant supplier.
In FY 2021/22, we conducted on-site audits for 24 suppliers in China. Regarding
sustainability criteria, there were no findings of non-conformance. In addition, we havereassessed the audit criteria and now include mandatory on-site quality audits based on
countries of high-risk for forced labor and for high-risk outsourced services. The Supplier
Audit Checklist has also been updated with a more comprehensive sustainability andcompliance section.

Procedures in case of non-participation or non-compliance
We have procedures and process flows in place for auditing rules and corrective actionplans in terms of the sustainability performance of suppliers. Since FY 2020/21, we havebeen integrating a sustainable development clause into contracts for new suppliers and forexisting suppliers in the course of contract renewals. The so-called Sustainability
Supplementary Agreement establishes and describes the suppliers’ obligation to participate
in and pay for off-site assessments and/or on-site audits, and to commit to and implement
an improvement plan if performance is below our defined benchmarks.

Partnerships

61dormakaba

Sustainability Report 2021/22

In addition, at the beginning of the supplier relationship, the supplier is presented with thedormakaba SCoC for signature. Suppliers refusing to sign the SCoC or who do not havetheir own of equal quality are blocked.
If a supplier is invited to participate in the EcoVadis off-site assessment, further actions are
determined by their assessment score. For suppliers with bronze, silver, gold, or platinum
level, further reassessments are required in three to five years. For suppliers with partial
performance, an annual reassessment is required, and an improvement plan is definedwithin the EcoVadis system.
Refusal to participate in an off-site assessment qualifies a supplier for an on-site audit.
Likewise, suppliers whose off-site assessment score is insufficient are shortlisted for an onsite audit. A corrective action plan is defined in the course of the on-site audit, with a oneyear implementation deadline. Suppliers are blocked or placed in active elimination for lackof implementation.
Additionally, a Responsible Procurement Steering Committee meets regularly to takedecisions on a case-by-case basis for special circumstances, such as when dealing withmonopoly suppliers, quality checks of suppliers’ internal Code of Conducts, acceptance ofsustainability assessments by providers other than EcoVadis, and monitoring andevaluation of suppliers listed as blocked or in active elimination due to sustainability
performance.

Sustainability trainings for procurement employees
Our procurement employees have a core role in achieving our goals related to Supplier
Sustainable Development. Their understanding of the sustainability aspect and theprogram with EcoVadis is key. Therefore, employees who are working together with
suppliers, participate in training programs that prepare them for sustainability- andassessment-related conversations with the partners. In total, 34 colleagues were trained
and 18 attended the virtual supplier onboarding meetings in FY 2021/22.

Further activities
In FY 2021/22, we continued to make significant progress in our supplier sustainability
engagement strategy, for example by initiating virtual supplier onboarding meetings to
improve the response rate in the EcoVadis Assessment Program. Furthermore, we havestarted working on the implementation of SAP Ariba, to automize processes for supplieronboarding, development, and communication. Through this system, we will be able tocollect and evaluate sustainability-related information of all suppliers. In case of ESGrelated risks, we contact the suppliers to participate in our sustainability assessment andimprovement process (in partnership with EcoVadis). This applies to all suppliers from highrisk countries and those that provide high-risk commodities, before registering on theplatform. Furthermore, a more detailed sustainability questionnaire will be sent out tospecific suppliers, for example regarding recycled content, conflict minerals, and various
certifications. The platform will be launched at the end of 2022.
Lastly, we developed a Sustainable Procurement Directive that is currently under review for
approval and will come into force in FY 2022/23. The policy includes basic regulations oncontractual sustainability agreements, sustainable purchasing factors and criteria, requests
for sustainability information, life cycle costing, supplier categorization for sustainability
assessments, and procedures in case of non-participation or non-compliance.

Partnerships

62dormakaba

Sustainability Report 2021/22

Improving transparency regarding conflict minerals in the supply chain
In FY 2020/21, we joined the Responsible Minerals Initiative, a well-respected multistakeholder organization evolving business practices to support responsible mineralproduction and sourcing globally, including but not limited to conflict-affected andhigh-risk areas. The information and tools we can access through the organization
help us to improve transparency in our supply chain with regard to the use ofmaterials, including conflict minerals.
Using their Conflict Minerals Reporting Template, we launched a US-wide
campaign with more than 1,200 suppliers (excluding non-production suppliers andservices) to provide relevant information to our customers to whom theaforementioned law might apply. As at 30 June 2022, around 60% of thecontacted suppliers submitted Conflict Mineral Statements. Approximately 40% of
the supplier responses indicated that no 3TGs (Tungsten, Tantalum, Tin, and Gold)
were intentionally used in the delivered goods, 13% have a strong complianceprogram, and 6.6% have weak conflict mineral procedures.
In this financial year, more than 700 suppliers globally provided Conflict Minerals
Reports upon our request.

Source of image: focusright Ltd., Conflict Minerals - Q&A to support companies’ due diligence,
January 2022 (Illustration by Natalia Gianinazzi, natalia-gianinazzi.ch)

OutlookDuring the next financial year, we will focus on developing processes that contribute to ourtarget of improving the percentage of recycled content in our metal products. With regard
to conflict minerals and supply chain transparency, we plan to establish a Conflict Minerals
Directive based on the OECD Due Diligence Framework.
And of course, we will continue to assess suppliers for their sustainability management
through EcoVadis. We acknowledge that following up with suppliers, encouraging their
participation in the assessment, and monitoring progress on corrective actions requires
time and resources. This has proved a challenge in FY 2020/21. Therefore, we will also
increase capacity internally by recruiting additional dedicated staff for suppliersustainability assessments for each business region. We strongly believe this increased
focus will provide our business partners with better support and awareness and will result
in better participation and improvement rates.

Partnerships

63dormakaba

Sustainability Report 2021/22

Partnerships

Human Rights
dormakaba acknowledges the responsibility to respect human rights
as outlined in the UN Guiding Principles on Business and Human
Rights (UNGPs).
Our approach
At dormakaba, we want to lead by example and engage with our partners to drive more
eco-friendly practices and support the protection of human rights. In today’s ever moreinterconnected and globalized world, there is increasing public focus on how companies arerespecting human rights in their operations as well as through their business relationships
across value chains. This means demonstrating that they are not harming the fundamental
dignity and welfare of people as they go about their legitimate work and generate the jobs,
wealth, and growth that benefit all communities. Human rights are rights inherent to all
human beings, irrespective of nationality, place of residence, sex, national, or ethnic origin,color, religion, language or any other status. Above all, human rights are interrelated,interdependent, and indivisible.
As a company with global supply chains, dormakaba is exposed to increased risks of being
directly or indirectly linked with human rights violations. We therefore treat the respect ofhuman rights as a top priority and require our business partners to do the same.
Our human rights commitment was published in FY 2019/20 in the form of the dormakaba
Statement of Commitment on Human Rights and extends to all individuals throughout thevalue chain. It was developed based on a gap assessment, stakeholder consultations, andthe salient issues identified (see details in the following section), and approved by our thenChairman and CEO. In prioritizing these salient issues, dormakaba recognizes that somegroups may be at greater risk of negative human rights impacts due to their vulnerability or
marginalization. We also recognize that the evaluation of the severity of potential impacts
may change and that other issues may grow in importance over time. We will therefore
regularly re-assess salient issues and human rights risks based on internal and external
stakeholder feedback and expert judgments.
We are guided by international human rights frameworks, which include but are not limited
to the “Protect, Respect, Remedy” framework of the UN Guiding Principles on Business andHuman Rights (UNGPs), the Universal Declaration of Human Rights (UDHR), theInternational Covenant on Civil and Political Rights, the International Covenant on
Economic, Social and Cultural Rights, the Core Labor Conventions of the International
Labor Organization (ILO), and the OECD Guidelines for Multinational Enterprises.

The commitment to humanrights is further put into
effect by the human rightsrelated sections in both thedormakaba Code of
Conduct and the Supplier
Code of Conduct, which
establish the company’s
expectations on humanrights for employees andsuppliers.

64dormakaba

Sustainability Report 2021/22

Human Rights Due Diligence (HRDD)
Our aim is to conduct Human Rights Due Diligence (HRDD) throughout our business toproactively assess, identify, prevent, and mitigate actual and potential adverse humanrights impacts on potentially affected rightsholders across the value chain. We also use
HRDD to identify where we can better support and promote individuals’ ability to live andexercise their fundamental human rights.
We have defined the following HRDD process and outlined it in the Statement ofCommitment on Human Rights to ensure dormakaba will be able to effectively implement
our commitment to respect human rights:

Process of Human Rights Due Diligence (HRDD)

Assessing potential impacts to define salient issues
dormakaba does not attribute more importance to one human right over another.
However, for the implementation of our human rights commitment, dormakaba prioritizes
human rights issues that are most salient to the business – identified via a formal humanrights saliency assessment conducted in accordance with the UNGPs.
This included consultations with 20 key internal and external stakeholders including humanrights experts, customers, and suppliers, which generated a focused list of salient humanrights issues for dormakaba and formed the basis for the company’s Statement ofCommitment on Human Rights.
Saliency was defined based on the inherent human rights risk, without reference to how
well our company manages the topic already. Thirteen issues appeared as most relevant,and these were further analyzed in terms of the company’s leverage and the potential
severity of impact. Severity here is defined by the scale, scope, and remediability of thepotential human rights impacts on people.

Partnerships

65dormakaba

Sustainability Report 2021/22

dormakaba Human Rights Saliency Matrix

Among the broader human rights issues identified, we commit to focusing on the salient
human rights issues (in alphabetical order) defined below:
Salient issue

Potential human rights impacts

Illustrative example in our value chain(not exhaustive)

Child labor

Rights on the protection of thechild;
Right to a family life;
Right to an education

Child labor used for cobalt andmica mining.

Contributing to conflict

Right to the security of theperson;Freedom from cruel, inhumane,and degrading treatment

Sourcing raw materials fromconflict zones and therefore
indirectly financing armed
conflicts.

Customer safety

Right to health

Door not stopping during
operation and injuring someone,
or not opening in case of fire andleading to a fatality.

Environmental issues
impacting human rights

Right to safe and clean drinking
Bauxite mine polluting water usedwater and sanitation;
by local communities for drinking,Right to health;washing, and cooking.
Right to an adequate standard oflivingMigrant workers (forcedlabor)

Right not to be subjected toMigrant workers in plants hired
slavery, servitude, or forced labor; through recruitment agencies at
Right to freedom of movement
risk of modern slavery/bonded
labor.

Outsourced services

Right to health;
Right to enjoy just and favorable
conditions of work

Outsourced/subcontracted
employees in plants facing health& safety risks (e.g., cleaning &security staff).

Occupational health &safetyRight to health;
Right to enjoy just and favorable
conditions of work;
Right to social security, including
social insurance

Staff installing products onbehalf of dormakaba facing injury
risks: lifting heavy equipment,
unsafe construction sites, roadaccidents, etc.

Partnerships

66dormakaba

Sustainability Report 2021/22

Partnerships

Given the challenges of limited transparency in the value chain, our salient issues are
regularly analyzed in more detail through human rights impact assessments or social audits
in high-risk areas in order to develop appropriate measures. We have committed to
conducting one social audit per financial year by 2027. The results of the social audit
planned for FY 2021/22 are currently pending.
In order to achieve this, we leverage our membership with the Responsible Labor
Initiative to work with local auditors to assess our operations based on the Responsible
Business Alliance Code of Conduct. Previous audits revealed, for example, that migrant
workers under employment had paid recruitment fees. However, under the Employer Pays
Principle, the costs of recruitment should be borne not by the worker but by the employer.

Integrate findings and take appropriate action
As a result of previous social audits, we have developed relevant mitigation measures,
including:• Development of service agreement templates for labor agents and labor contractors
to better address freely chosen employment and responsible recruitment practices• Requirements for pre-departure training for foreign migrant workers on recruitment
fees and the dormakaba whistleblowing system• Training requirements for a wider range of stakeholders on the dormakaba supplierassessment and engagement program

Tracking and communicating performance
We commit to transparently reporting on the progress of our efforts in our annual
sustainability report as well as to publicly accounting – through this report and our annual
Modern Slavery Statement – for how human rights issues are addressed.
We track the effectiveness of our actions and influence to ensure human rights arerespected in the value chain. We do this through a management system with concretetargets and key performance indicators, monitoring the implementation of the humanrights road map.

Remediating adverse impacts
When adverse human rights impacts are uncovered due to our business activities or fromlinks to our operations, we are committed to taking timely and transparent action to
remediate in a fair and equitable manner in line with the UNGPs. Where we find impacts
linked to our business relationships, we will use our influence to encourage suppliers andbusiness partners to respect human rights.
In FY 2020/21, when it was discovered that recruitment fees were paid by foreign migrant
workers in Malaysia in the past, we committed to fully reimbursing these fees dating backto those that had been paid even ten years ago. All foreign migrant workers wereinterviewed to collect information on recruitment fees paid and reimbursements have been
made within the recommended time frame by the Responsible Labor Initiative.

Access to grievanceThe dormakaba whistleblowing system and tool have been evaluated by an external party
for conformity to the effectiveness criteria for grievance mechanisms laid out by the UN
Guiding Principles on Business and Human Rights, which were mostly met. A description of
our reporting channels is included in the dormakaba Code of Conduct and a communication
campaign was launched, including print media (poster campaign) for local implementation
to reach production workers.

Policy commitment
In addition to our Statement of Commitment on Human Rights, our Responsible Labor
Directive and the specific Zero Recruitment Fees Directive lay out our policy commitments
on human rights-relevant topics of labor conditions for our workforce. The directives give
more concrete guidance and set minimum standards on topics such as freely chosen
employment, working hours, workers’ accommodation, and responsible recruitment on a
global level.

dormakaba issues anannual Modern Slavery
Statement pursuant to
Section 54, Part 6 of the UK
Modern Slavery Act 2015.
The statement sets out thesteps dormakaba has taken
to ensure that slavery andhuman trafficking are nottaking place in its supply
chains or any part of thebusiness.

67

dormakaba

Sustainability Report 2021/22

Our activities
During the current strategic cycle (2021–2027), we are focusing our efforts regarding theprotection of human rights on the following activities:• Ethical recruitment trainings• Cobalt traceability• Respecting the right to water

Ethical recruitment trainings
Based on the tools and training modules developed by the Responsible Labor Initiative, we
commit to providing ethical recruitment trainings for our labor agents by 2027 in sending
and receiving countries where we recruit foreign workers. This includes but is not limited tomigration corridors between Nepal, Myanmar, and Malaysia, and between Taiwan and thePhilippines. The aim of the trainings is to protect and reduce the risk of forced labor for
migrant workers. Implementation is slated to begin in FY 2023/24.

Cobalt traceability
We are aware that the mining of cobalt is often linked to human rights violations, includingchild labor, especially when sourced from the DRC region. As a company procuring
electronic components, we must take action to increase transparency in our supply chain,regarding human rights violations during the mining of high-risk minerals. Therefore, it isour goal to ensure supply chain traceability for minerals having high risk of child labor by2027.
In the first (research) phase of our cobalt traceability work, we started consultations withhuman rights experts, and in partnership with the University of St. Gallen, we developed astudy to gain deeper insight into tracing cobalt in fragmented supply chains related to theelectronic components that we use in our products. The study assessed typical humanrights risks, including child labor, as well as governance and traceability challenges.
The second phase started in FY 2020/21 with cobalt traceability dialogues with key
suppliers. Our aim is to start conversations on human rights and environmental risks in joint
upstream value chains and discuss opportunities for collaboration to meet increased legal
and public expectations. We also want to gain a common understanding of sustainability
engagements and learn more about the level of traceability of raw materials as well asdelivered products. Based on a risk assessment, we invited suppliers from the electronics
and copper supply chain to participate. As our copper suppliers are usually closer to themining source, and since copper and cobalt have similar upstream supply chains, we expect
deeper insights into the traceability of materials. The dialogues are ongoing.

Partnerships

68dormakaba

Sustainability Report 2021/22

Partnerships

Respecting the right to water
We recognize that the human right to water entitles everyone to have physical andfinancial access to sufficient, safe, and acceptable water for personal and domestic use. In
our obligation to respect this right, we assess the level of water scarcity in areas where we
operate. The latest analysis revealed that approximately 40% of our sites have thepotential for high to extreme water stress, defined as a “water demand to supply ratio of
40% or greater for the respective municipality”. The water stress analysis is based on thetwo databases Aqueduct Water Risk Atlas by the World Resources Institute and
AQUASTAT by the Food and Agriculture Organization. Seven manufacturing sites havebeen found to have (1) high or extreme water stress, and (2) high water consumption
relative to other sites.
Water stress level by sites*
Water consumption data
for all locations within thescope of our reporting areavailable in our ESG
Performance Table.

ESG Performance Table* Based on all locations, including those beyond the regular scope of this report.

Water stewardshipprogram in Peru
To support the right towater in communities
where we manufacture,
we have set a target toestablish water
stewardship programs inareas of high water
scarcity, with no absoluteincrease in water
consumption andWater treatment plant in Villa El Salvador (Peru)

reducing water intensity by 28% until 2027 (baseline 5,086 m 3 absoluteconsumption and 25.5 L/hours worked, in FY 2019/20).
In FY 2021/22, we implemented a water treatment plant at our site in Villa El
Salvador (Peru) that collects and cleans water from the production process. The
plant recovers 50% of the water, with projected savings of 1,472 m 3 water (during
the period April 2022 — April 2023). We are focused on establishing another water
treatment plant in Tocancipá (Columbia), and in order to do so, we are completinga feasibility study and evaluating the options for increasing the recovery rate to100%.

OutlookDuring the upcoming financial year, we will finalize the supplier dialogues on cobalt
traceability, and based on these results we will develop practical recommendations for
improving procurement processes for cobalt and potentially for other raw material value
chains. In addition, we will start collecting the newly introduced Extended Mineral Reporting
Template from relevant suppliers, which includes information on cobalt supply chain due
diligence. We will implement any corrective actions resulting from the social audit of our69

dormakaba

Sustainability Report 2021/22

facility in Senai (Malaysia) and also conduct a further social audit of our manufacturing
facility in Taishan (China).
The seven sites under the scope of our water stewardship targets have several initiatives
planned, including employee awareness campaigns, water recycling for the fire system,
implementation of drip irrigation systems, and water-saving faucets.

Partnerships

70dormakaba

Sustainability Report 2021/22

Customer Health & Safety
Our vision is to make access in our customers’ lives safe, secure, andsustainable. End user health and safety is therefore a top priority andan inherent part of our business plans.
Our approach
As one of the top three global access control and security solutions companies, customer
health and safety is fundamental to our sense of product responsibility. By identifying andminimizing all possible risks relating to our products – including those arising from harmful
materials or potentially endangering functional features – we ensure the safety of ourcustomers and end users.

Our activities
Public buildings must meet high standards in terms of public health & safety – this also
applies to our built-in products and solutions. dormakaba meets these product andcustomer requirements with product certifications for internationally recognized standards
such as the European Standard (EN), American National Standards Institute (ANSI), or theDeutsches Institut für Normung (DIN). We pay particular attention to the DIN 18040
standards, which apply to barrier-free construction in public buildings. Furthermore, ISO
9001 processes ensure that quality management requirements are continuously monitored
and improved. No product can be installed in the field or released for production without
the appropriate certification.
To ensure product- and solution-specific customer health and safety, our Access Solutions
and Key & Wall Solutions businesses are developing adequate action plans.

Access Solutions
Our Access Solutions (AS) business provides products such as escape routes, entrance
systems, and hotel access systems. We work to address fire safety, electromagnetic
interference, and to reduce hazardous substances, as well as ensuring that emergency exits
open following a power failure.

Fire testing of the ED
250 door operator
An example of a fire test
requires the door
assembly with locks to beplaced in a door leaf andsubjected to atemperature determinedin the door leaf
specification for a periodof three hours.
Requirements are met if

dormakaba ED 250 door operator in a fire test

no flaming occurs on the unexposed surface of a door assembly during the first 30
minutes of the testing period, among other prerequisites. The fire test fails if
flames penetrate the door leaf at any point during the whole test time.
The dormakaba ED 250 door operator with flat scan and IRS door sensors
underwent a successful fire resistance test (EI60) for continued Certifire
Certification in FY 2021/22. After the product was installed in the fire door, it was
exposed to fire for 73 minutes without flames spreading to the non-exposed side of
the wall. The fire test results define the requirements for dormakaba engineerswhen it comes to the installation aspect of the sensors and their wiring.

Partnerships

71dormakaba

Sustainability Report 2021/22

Hazardous substances: products are designed to comply with the EU Directive on the
restriction of the use of certain hazardous substances in electrical and electronic equipment(RoHS Directive 2011/65/EU and its enforced amendments, especially 2015/863/EU). Allcomponents and materials in electronic products sold in the EU market must be RoHScompliant before any product manufacturing begins.

Outstanding VOCs test
result for Variflex
Studies show that about
90% of people's time isspent indoors in North
America and Europe.
Therefore, it is important
to be aware of the healthimpacts that indoor air
quality might have. Low
Volatile Organic
Compounds (VOCs) areuseful indicators of indoor
air quality, which is also afactor for building
certification systems such as DGNB, LEED, and BREEAM.
In a recent emissions test by the eco-INSTITUT, the Variflex movable wall system by
Dorma Hüppe was analyzed for its VOCs content. As a result of the 28-day test,
the Variflex product showed only 0.021 mg/m³ VOCs, while the maximum allowedreference value is 1 mg/m³, based on the AgBB (Committee for Health-related
Evaluation of Building Products) guidance.

Electrostatic discharges: for various Electronic Access & Data products, we focus on
product certification. For example, the dormakaba Wireless Gateway 90 42 is certified
according to EN 55024, which tests for immunity in cases of electrostatic discharges, power
surges and interruptions, or radio frequency interference. The product is also certified
according to IEC 60950, which specifies requirements intended to reduce the risk of fire,electric shock, or injury to the service person, operator, or end user who may come into
contact with the product.
Emergency exits and escape routes: automatic doors are subject to the highest safety
demands, in accordance with EN 16005. To meet these demands, self-monitoring sensors
are mandatory. Obstacle self-detection and automatic reversing are also included in many
products. For example, the KTV ATRIUM revolving door systems feature a safety sensor
system. Emergency exit and escape route doors are equipped with a redundant operator,
an additional control unit for safety purposes, and a self-monitoring motion detector.
Additionally, revolving doors require a safety risk assessment before installation, in
accordance with DIN 18650. This is provided by us at the building site before a sale is made.

Customer complaint process
In case of emerging risks and customer complaints, we have a Group-wide customer
complaint process in place based on the principles of ease of access, solution-driven
expertise, short response times, positivity, and focus on our value “Customer First”.
The process follows five steps:
1. Acknowledge that the customer has an issue, ideally within 24 hours.
2. Assess the problem, prioritize, and find a solution driver.
3. Resolve the issue.
4. Respond in a timely manner, keeping the customer informed of the status.

Partnerships

72dormakaba

Sustainability Report 2021/22

5. Conclude with a proper follow-up to assess the customer’s satisfaction and integratelessons learned.
6. Regulatory compliance is at the top of the list of priorities for any productdevelopment leader and requires immediate action plans. An incident response plan is
also put in place to enable direct access to the required resources.

Key & Wall Solutions
Our Key & Wall Solutions business manufactures automotive solutions, keys, and spacedividing solutions. Both our Key Systems and Movable Walls business units have individual
approaches to customer health and safety that are product-specific.
The business unit Key Systems approaches customer health and safety as an element of its
ISO 9001 certifications and ensures compliance with both mandatory (such as theEuropean CE Declaration of Conformity) and voluntary safety standards. It has over 16
product certifications. Each Key Systems product features: proper documentation, such asa user manual; a Declaration of Compliance; contact details for the manufacturer; quick
guides and tutorials available on the web; and training on demand or during productinstallation to provide the customer with all the information relevant for proper product use
and safety features. Regional distributors are periodically trained on the same topics.
In addition to the Group-wide customer complaint process, there is a further grievancemechanism operated by Quality Assurance managers. The management steps involved are:registering the complaint in the ticketing system, evaluation, problem analysis andcorrective actions, verification, lessons learned, and closure. The effectiveness of thegrievance mechanism is based on the number of open, accepted, refused, and closed
complaints per fiscal year. Additionally, at least once a year, a management review
assessment evaluates related KPIs and performance status.

Raising awareness about the safe use and installation of our products
Besides certifications and maintaining our high-standard processes, we also believe that it
is important to efficiently communicate with our partners and customers about the safe
installation, operation, and use of our products. We have set the following targets tofurther minimize any health and safety risks related to our products. By 2027, we aim to:• collaborate on health and safety trainings with subcontractors and installation
partners;• collaborate on trainings and provide information materials on the safe operation of
our products to all end users; and• have at least one corrective action and/or one awareness training for each productrelated injury.

Safety andmaintenance training
for hospital staff
We are providing door
hardware products andspecial hermetic doors to
the new Drammen
Hospital in Norway, forexample 3800 series
levers, ED 250, TS 98 XEA,

Photo credit: Link Arkitekter, Ratio Arkitekter, Bølgeblikk,
Helse Sør-Øst RHF

and mechanical key systems. As part of the product delivery, we have also started
developing eLearning modules on the safe use of these doors and interlock
solutions, to be shared with all hospital staff. Furthermore, we will deliver on-sitetrainings on maintenance - related topics to the technical staff and facility
managers. The project will be finished in 2025.

Partnerships

73dormakaba

Sustainability Report 2021/22

Partnerships

Our performance
We internally and externally verify customer health and safety through various certification
programs including ISO 9001, testing, and stakeholder feedback. In FY 2021/22, 55% ofreporting sites achieved ISO 9001 certification.
In FY 2021/22, there have been no incidents of non-compliance with regulations or voluntary
codes concerning the health and safety impacts of products and services that have resulted
in a fine, penalty, or written warning.

Outlook
We will continue our efforts to ensure customer health and safety in relation to the use of
our products. Management of product safety has been very locally driven in the past,making the development of global processes a challenge. In FY 2022/23, a global sufficiency
assessment on product safety trainings and information materials is planned to optimize
our internal processes.

55% of our sites haveachieved ISO 9001
certification

ESG Performance Table74

dormakaba

Sustainability Report 2021/22

Outro
About this report
This is the dormakaba Holding AG (“dormakaba”) Sustainability Report 2021/22, whichhighlights our sustainability commitment, strategic approach, and progress, and is geared
towards all stakeholders. This is the company’s seventh sustainability report. This reporthas been prepared in accordance with the GRI Standards: Core option. The report covers
the financial year 2021/22, from 1 July 2021 to 30 June 2022. dormakaba reports on anannual cycle and published the previous report in September 2021. External assurance ofthe full Sustainability Report 2021/22 was not performed. External assurance of a limited
scope of key performance indicators including Scope 1+2 carbon emissions is currently
ongoing, and the assurance letter will be published on the dormakaba website in October
2022. The compensation of the Board of Directors and the Executive Committee, as well as
the financial statements found in the Annual Report, were audited by an external auditor.
Due to improvements in data quality and validation processes, a restatement of thepreviously reported carbon footprint data from the FY 2020/21 is necessary. The restatedfigure is 70,311 tCO 2 e for combined Scope 1+2 emissions (market-based approach), as
opposed to the previously reported figure of 70,314 tCO 2 e. Scope 1 decreased by 3 tCO 2 e
due to improvements in accounting for biofuels mixes. Additionally, the Scope 3 emissions
pertaining to Category 11 Use of Sold Products need to be restated due to improvements inprecision for country-based sales volumes. The restated emissions are 272,900 tCO 2 e.

Significant changes to the organization and its supply chain
In November 2021, the new corporate growth strategy, Shape4Growth, was presented tothe public and its implementation began at the start of January 2022. Shape4Growth will
accelerate profitable growth through a focus on core businesses, core markets, andcustomer-centricity, enabled by enhancements in operational excellence and scale, capital
deployment, and culture. This focus will be further anchored in the company through achange in the operating model to three customer-centric regions and sales organizations
for Access Solutions – Americas, Asia-Pacific and Europe & Africa – which will be supported
by global functions to capture synergies. The expected benefits include significant
improvements in customer centricity, in scale, and operational efficiency, as well as intransparency and accountability.
Effective as of 1 January 2022, Jim-Heng Lee assumed the role of CEO of dormakaba. The
Singaporean national joined dormakaba in 2014 and had been a member of the Executive
Committee since that time. During FY 2021/22, the following changes within the Executive
Committee have also been made: Mathias Mörtl joined dormakaba on 1 December 2021 as
COO. Andy Jones was appointed President Asia Pacific as of 12 January 2022. Bernd
Brinker stepped down from his role as CFO and was succeeded by Kaspar W. Kelterborn asinterim CFO as of 1 April 2022.
dormakaba has had a number of acquisitions in FY 2021/22. Fermatic Group (Fermatic), a
provider of services, repair and installation of automatic doors, automatic gates, andautomatic garage doors, was acquired. Fermatic primarily operates in the multi-housing
market in the North-West of France, and also serves other verticals such as Offices, Retailand Public Buildings. dormakaba has also acquired the Australian Reliance Doors and Best
Doors Australia Groups (RELBDA), a leading Australian provider of residential garage
doors, automatic openers, industrial overhead doors, and related services.
dormakaba has divested its interior glass business (IGS) including the Dorma-Glas GmbH
manufacturing site in Bad Salzuflen (Germany), and selected sales units in Europe.
dormakaba has also divested its Mesker hollow metal doors business to the key principals of
Trimco and Metal Manufacturing Industries (MMI).

Outro

75

dormakaba

Sustainability Report 2021/22

Reporting coverage and processes
The data presented covers 95% of dormakaba employees in 100 locations worldwide, as
represented by the blue dots on the below map. These are locations with more than 20
employees and include all manufacturing facilities. Environmental data, including that onenergy, water, waste, and materials consumption, is collected via an internal BusinessIntelligence reporting platform. Each location has a dedicated reporter. For everything
except materials use, internal reporting deadlines are set at the 6th, 10th, and 12th monthof the financial year. Materials use is reported at financial-year end. Human Resources data
pertaining to GRI 100, such as fluctuation and workforce composition, is gathered throughthe Group-wide Human Resources Information Platform of SAP SuccessFactors. Figures on
corruption cases, collective bargaining, and training hours are gathered on an annual basis
by HR for all reporting units in scope via an internal Business Intelligence reporting
platform. Injury rates, injury and accident types, corrective actions, and root cause analysis
data is collected in a web-based Health and Safety tool, which was rolled out on 1 July 2020
across the organization for all sites within the scope of this report. Data quality controls
and consolidation for all data are provided after financial-year end by an external
consultant.

Sites covered

Outro

76

dormakaba

Sustainability Report 2021/22

Materiality process in detail
In the financial year 2020/21, dormakaba carried out a comprehensive materiality
reassessment as part of the development of a new sustainability strategy for 2021–2027.

Impact assessment
As part of the materiality process, we focused our efforts on a study-based impact
assessment of sustainability topics along our value chain. The aim was to focus efforts
where dormakaba can have the most impact on sustainable development. The analysis
included dormakaba data from procurement, sales, production, and human resources. Thiswas overlaid with over 50 risk indicators from social hotspot databases, the World Bank,and the Organisation for Economic Co-operation and Development (OECD).
The approach provided a structured qualitative analysis of environmental, social, andeconomic indicators for the countries and industries dormakaba is involved in throughout
the value chain.

dormakaba value chain

For ease of modelling, the company’s value chain was simplified into four steps in the sustainability
impact assessment: 1.) Raw materials & sourced goods; 2.) Transportation; 3.) Own activities; and 4.)Distribution, use, and end-of-life.

The basis for the long-list of 27 topics taken up into the assessment were:• the material and non-material topics under consideration in the 2017/18 materiality
assessment, updated based on recent risk assessments and due diligence processes(particularly on human rights);• Circular Economy, as an additional topic based on the sustainability context of theindustries in our value chain; and• the topic of Responsible Tax Practices.
Overall, the assessment process has not only helped to identify hotspots along the value
chain, it also has generated internal momentum and sharpened understanding of these
impacts. It will serve as a basis for informed decision-making as the company manages its
sustainability efforts going forward.

Stakeholder dialogue
The second dimension in the materiality reassessment focused on the relevance ofsustainability topics for our stakeholders, both internal and external. The stakeholder
dialogue was thorough and validated in a robust, multi-stage process. This included an
online survey of over 2,000 employees around the world, around 100 senior managers,
including members of the Executive Committee, and a separate survey for the members of
the Sustainability Working Group and other employees who regularly deal withsustainability matters in their day-to-day work. Additionally, bilateral discussions with themembers of the Group Sustainability Council and with external representatives such as
investors, banks, customers, suppliers, partners, and local government were conducted.

Outro

77

dormakaba

Sustainability Report 2021/22

Outro

Threshold-setting and validation
The results of the impact assessment and stakeholder dialogue were quantified in theReporting Frameworks

dormakaba Materiality Matrix. A recommendation to the Group Sustainability Council on
the proposed threshold for material topics was developed in a workshop with the
Sustainability Working Group. Stakeholders included representatives from a range of global
and regional functions within the Procurement, Human Resources, Compliance, Operations,
EHS, and Product Development departments.
The majority of topics where dormakaba was shown to have a medium to high impact onsustainable development were taken up as material. These were topics where dormakaba
either makes a positive contribution to sustainable development – for example through job
creation or training – or topics whereby our own operations or those of business partners
and suppliers could have a negative impact, for example energy consumption andgreenhouse gas emissions resulting from the manufacturing process. Most topics with amedium to high relevance to our stakeholders were defined as material as well.
In a final step, the proposed material topics were discussed with the Group Sustainability
Council and the Executive Committee, which then approved them. In addition, theExecutive Committee defined the topic of Diversity as material.

Changes in material topics
Many topics which had been previously defined as material were reconfirmed through thereassessment process. In addition, two new topics were newly added as material, as seen in
the table below. Some topics that had been previously defined as material were shown to
be of less relevance to stakeholders or to have less potential impact on sustainable
development by the company. While these topics are less material within the sustainability
framework and targets, we have elected to continue reporting key performance indicatorson the topics of anti-corruption, water, and waste in our ESG Performance Table.
Particulary our commitment to the principles related to anti-corruption continues as amember of the UN Global Compact.
New material topics

Previously defined as material

Circular Economy

Anti-competitive Behavior

Diversity

Anti-corruption
Freedom of Association & Collective Bargaining
Water
Waste

This report has been
prepared in accordancewith the GRI Standards:
Core option.
dormakaba also reports to
the Carbon Disclosure
Project annually. Last year,
dormakaba achieved a B
score for its report.
dormakaba is a member of
the UN Global Compact
and publishes its annual“Communication on
Progress” on the UN Global
Compact website.

78dormakaba

Sustainability Report 2021/22

dormakaba Materiality Matrix 2021–2027
The dormakaba Materiality Matrix below highlights the material topics we have set
strategic targets to, and will monitor and report on through to 2027, while tracking any
emerging global issues or risks for future consideration. An interactive version is available in
the web version of this report. For each topic, the topic boundaries are defined as per
impacts along the dormakaba value chain, as seen in the subsequent charts. We prioritizethese issues according to the degree of potential impact.

Outro

79

dormakaba

Sustainability Report 2021/22

Circular economy
Definition: enhancement of a circular economy approach in operations and product design,
e.g. improvement of recyclability, retrofitability, and reparability of products; modular
design with re-usable and/or replaceable parts; take-back and repairing programs;
development of product leasing models as an alternative to common buying models;
improvement of material efficiency; use of recyclable, biologically degradable, or bio-based
plastics and packaging; increased recycled goods purchased.
Potential Impact per Value Chain Step

Customer Health & Safety
Definition: assurance of the health and safety of customers, consumers, and other users.
Potential Impact per Value Chain Step

Outro

80

dormakaba

Sustainability Report 2021/22

Diversity
Definition: enhancement of diversity, equal opportunity, and prevention of discrimination
along the value chain, e.g. women in leadership positions; integration of people withdisabilities, different cultural backgrounds and nationalities; adaptation to an ageing
workforce; equal pay; proactive diversity management; prevention of harassment anddiscrimination on any grounds such as gender, sexual orientation, age, ethnic origin, race,
culture, religion, political opinion, or social origin.
Potential Impact per Value Chain Step

EmissionsDefinition: greenhouse gas (GHG) emissions and air pollutants in the supply chain, logistics
and operations, e.g. CO 2 , NOx, SOx, volatile organic compounds (VOCs), fine dust
emissions, ozone-depleting substances, reduction of the risks of related human healthimpacts.
Potential Impact per Value Chain Step

Outro

81

dormakaba

Sustainability Report 2021/22

Employment
Definition: employment and job creation by the organization and along the value chain, e.g.
employment practices, wages, working conditions, hiring and retention of employees, social
dialogue, employee-management relations.
Potential Impact per Value Chain Step

EnergyDefinition: energy consumption and use of renewable energy in the supply chain, logistics,
operations, and products, e.g. energy efficiency, use of local and renewable energy, energy
efficiency of products.
Potential Impact per Value Chain Step

Outro

82

dormakaba

Sustainability Report 2021/22

Environmental compliance
Definition: compliance with environmental laws and regulations along the value chain, e.g.
reduction of financial risks through fines and negative impacts on reputation, avoidance ofclean-up obligations or other costly environmental liabilities.
Potential Impact per Value Chain Step

Human rights
Definition: respecting human rights along the value chain, e.g. obligation and training of
employees and business partners to adhere to human rights, provision of grievancemechanisms, human rights due diligence. Human rights include but are not limited to e.g.
freedom of religion, the right to life, protection from discrimination, freedom from slavery
and forced labor.
Potential Impact per Value Chain Step

Outro

83

dormakaba

Sustainability Report 2021/22

Materials
Definition: efficient use of materials in production and in the supply chain, e.g. optimizationof the production process, responsible sourcing of conflict minerals, and wood, ensuring
material traceability, responsible use, recycling and reuse of materials and product recovery,
responsible use of scarce materials.
Potential Impact per Value Chain Step

Occupational Health & Safety
Definition: accidents, injuries, and wellbeing of people involved in activities along the value
chain, e.g. workers' exposure to risks and hazardous substances, (personal) protective
equipment, health and safety training, health checks, case management, ergonomic work
spaces.
Potential Impact per Value Chain Step

Outro

84

dormakaba

Sustainability Report 2021/22

Supplier sustainability assessment
Definition: reduction of negative environmental and social impacts in the supply chain andof business partners, i.e. supplier screening, due diligence processes, prevention, mitigation,and remediation of negative impacts. Requirement of social standards for suppliers andbusiness partners, i.e. code of conduct, certifications, audits in the supply chain. Sustainablesourcing of raw materials, e.g. impacts of extraction (including conflict minerals),
procurement from politically unstable regions.
Potential Impact per Value Chain Step

Training and education
Definition: enhancement of employee and talent development along the value chain, e.g.
vocational training, development planning, performance evaluation, promotion of skills,
employee training and education, promotion of lifelong learning opportunities, facilitationof continued employability.
Potential Impact per Value Chain Step

Outro

85

dormakaba

Sustainability Report 2021/22

86

KPI Summary

ESG Performance Table
Environmental Performance
GRI ref.

Indicator description

2021/222020/212019/20

GRI 301 – 1

Materials used 1) (metric tons)
Non-renewable resources

70,75275,361

74,56059,116

62,98561,852

Steel (incl. stainless steel)

28,566

27,621

32,167

Brass

11,194

10,334

8,872

Aluminium

8,011

8,686

8,587

Nickel silver

1,829

2,058

1,469

Zinc

3,127

3,145

4,330

CopperGRI 302 – 1

6

38

34

Gypsum board

3,171

8,095

2,963

Glass

1,719

1,696

2,250

Plastics (parts and packaging material)

1,493

1,312

1,181

Renewable resources

11,636

12,376

12,708Wood (incl. packaging material)

7,404

8,146

8,362

Paper and cardboard (incl. packaging material)

4,232

4,230

4,346

Energy consumption within the organization (MWh)254,212

252,571

255,240

Electricity total

125,149

125,136

124,900

Electricity from renewable sources2)

Electricity from non-renewable sources

GRI 302 – 2

58,06856,971

48,23767,081

68,16476,664

District heating

1,675

1,627

1,489

Heating fuels total

67,231

67,92469,739Heating oil and diesel for backup generators

7,246

6,828

7,128

Natural gas

58,52659,334

61,223

LPG/propane

1,458

1,763

1,388

Vehicle fuels total

60,15757,884

59,112

Diesel

44,95744,17446,447Gasoline

13,467

11,80911,302

LPG/propane

1,622

1,766

1,280

Other vehicle fuels: bioethanol and natural gas

110

135

83

Energy intensity (MWh/mCHF net sales)

92.2

101.0

100.5

Greenhouse Gas Emissions (tCO2e)
Scope 1+2 (market-based)

68,62570,311

74,768

Scope 1+2 (location-based)

85,797

85,34185,4071,200,625

1,145,611

1,199,704

Scope 1 (direct) GHGs 3,4)

30,521

30,244

31,160

Vehicle fuels (owned and leased fuels) 6)

15,88815,295

15,661

Heating fuels (incl. diesel for back-up generators)

14,26914,391

14,770Volatile and process emissions (e.g. refrigerants andwelding processes)

364

558

729

38,10440,06743,60838,05840,027

43,57546

40

33

Scope 3 (indirect) GHGs

1,132,000

1,075,300

1,124,936

Purchased goods and services

868,300

802,400

957,336

Use phase of sold products

263,700

272,900

167,600

24.9

28.1

29.4

Scope 1+2+3 (market-based)
GRI 305 – 1

GRI 305 – 2

Scope 2 (indirect) GHGs 3,5)
Electricity

7)

District heating
GRI 305 – 3

GRI 305 – 4

Carbon intensity 8) (tCO2e/mCHF net sales)

GRI 303 – 3

Water withdrawal (m 3 )752,904

841,474

734,847

Municipal water supplies (tap water)

659,053758,021649,213Ground water (drown directly from well)

89,483

78,95380,537

Surface water (drown directly from rivers, lakes, wetlands,
etc.)

4,369

4,500

5,097

dormakaba

Sustainability Report 2021/22

Water intensity (m 3 /mCHF net sales)
GRI 303 – 4

GRI 306 – 3

GRI 306 – 4,5

87

KPI Summary

273.1

336.6

289.4

Wastewater discharge (m 3 )472,825

472,569

461,670

Municipal sewerage system

197,816

210,482

241,661

Disposal to water bodies

167,037

157,606

136,524

Treated by third party

107,972

104,481

83,485Non-hazardous waste

35,94136,28939,606

Scrap metal

28,791

28,776

31,831Other commercial and industrial (mixed) waste

3,829

4,507

4,870

Wood

1,717

1,521

1,561

Paper and cardboard

1,314

1,239

1,181

Plastics

244

197

108

Glass

46

47

56

Hazardous waste

2,634

2,396

2,238

Chemicals and other

Waste generated (metric tons)

2,521

2,279

2,065

Electronic scrap

84

82

96

Batteries

29

35

76

Non-hazardous waste

35,94136,28939,606

Recycling

19,564

17,415

17,839

Reuse

7,018

10,694

9,641

On-site storage

6,115

4,092

7,624

Landfill

2,724

3,443

3,841

Incineration

485

608

636

Recovery

35

37

26

2,634

2,396

2,238

Recycling

1,406

1,351

1,021

On-site storage

1,028

845

819

152

167

367

Waste disposed (metric tons)

Hazardous waste

Incineration
Landfill

48

33

31

Waste intensity (t/mCHF net sales)

14.0

15.5

16.5

1) Not included are materials and volumes that can only be accounted for in pieces or monetary terms.
2) Including own generation
3) Greenhouse gas inventory calculated in accordance with the WRI/WBCSD Greenhouse Gas Protocol. Emission factor sources: UK Defra (2019), US EPA
eGRID (2018), IEA (2019), AIB (2018).
4) Scope 1: direct greenhouse gas emissions from sources owned or controlled by dormakaba.
5) Scope 2: indirect greenhouse gas emissions from sources owned or controlled by another entity, as a consequence of the company’s activities.
6) Biogenic emissions associated with the combustion of biofuel amounting to 15 tCO2e. These are called "outside of scope" emissions and reflect the
impact of burning biomass and biofuels. The fuel source itself absorbs an equivalent amount of CO2 during the growth phase to that released throughcombustion).
7) The greenhouse gas emissions associated with electricity consumption are reported according to the “market-based approach”, as defined in theGreenhouse Gas Protocol Scope 2 Guidance.
8) Regarding Scope 1+2 emissions

dormakaba

Sustainability Report 2021/22

88

KPI Summary

Social Performance
GRI ref.

Indicator description

GRI 102 – 41

Collective bargaining agreements

GRI 102 – 8

Total number of employees 1)

GRI 401 – 1

New employee hires and employee turnover
New employee hires (joiner rate)

GRI 403 – 9

2021/222020/2145%
15,716

2019/2057%
15,2501,492

64%
15,472

2,560

17%

10%

1,545

10%

Female

720

17%

455

11%

463

11%

Male

1,840

17%

1,037

10%

1,082

10%

< 30 years

587

66%

321

23%

328

22%

30 – 50 years

1,463

17%

879

11%

910

11%

> 50 years

510

10%

301

6%

307

6%

Employee turnover (excluding retirement)

1,975

13%

1,700

12%

1,835

12%

Female

625

15%

500

12%

568

13%

Male

1,341

13%

1,200

11%

1,267

12%

< 30 years

365

41%

295

22%

320

21%

30 – 50 years

1,131

13%

937

12%

972

12%

> 50 years

479

9%

468

9%

543

10%

Retirement

143

1%

149

1%

141

1%

Occupational Health & Safety
Registered work-related injury cases

198

186

231

Recordable work-related injury rate 2)

1.5

1.4

1.7

Employee work-related fatalities

–

–

–

GRI 404 – 1

Average hours of training per employee per year (hours)

12

13

17

GRI 405 – 1

Diversity of governance bodies and employees
Employees
Female

4,578

29%

4,452

29%

4,471

Male

11,13871%

10,79871%

11,00171%< 30 years

1,618

10%

1,420

9%

1,574

10%

30 – 50 years

8,537

54%

8,412

55%

8,481

55%

> 50 years

5,561

35%

5,418

36%

5,417

35%

Female managers

20%

19%

29%

n.a.

Board of Directors
Female

2

20%

3

30%

3

30%

Male

8

80%

7

70%

7

70%

< 30 years––

30 – 50 years

2

2

2

> 50 years

8

8

8

–

Executive Committee

GRI 414 – 2

Female

–

0%

1

12.5%

–

0%

Male

9

100%

7

87.5%

9

100%

< 30 years

–

–

–

30 – 50 years

2

1

–

> 50 years

7

7

9

Number of suppliers assessed 3)

390

146

86

Number of suppliers allocated with corrective action plan

234

45

–

6

–

–

Supplier Engagement & Sustainability Assessment

Number of business relationships terminatedEthics, integrity, and human rights

Our approach:We emphasize integrity, governance, and responsible business practices, and regard fair competition as the soundest basis forour growth and corporate success. As a member of the UN Global Compact, we are committed not only to avoiding bribery,
extortion, and other forms of corruption, but to developing related policies and specific programs, both internally and within our
supply chain.
Related policies / directives:
dormakaba Code of Conduct
dormakaba Supplier Code of Conduct
Group Antitrust Directive
Group Anti-corruption Directive

dormakaba

GRI 412 – 1

Sustainability Report 2021/22

Operations that have been subject to human rights reviews
or impact assessments

1

2

n.a.

10

20

19

Number of total cases resolved

6

18

14

Number of confirmed corruption incidents

–

–

–

7,939

12,452

7,900

Number of incidents reported through whistleblowing
systemNumber of employees participated in compliance-related
trainings

89

KPI Summary

Information security
Our approach:
Safeguarding our customers’ rights to data protection and privacy includes obtaining data by lawful and fair means, protecting
the personal data of customers by adequate information security safeguards, and using customer data responsibly. We have an
Information Security Management System (ISMS) in place, which is based on the ISO/IEC standard 27001:2013. The scope ofthe certification covers Group IT, dormakaba digital in Europe and the USA, and digital-based product development in Europe.
Related directives:
Group Information Security Directive
Data Protection Management System Directive
Percentage of product categories with an information
security management system certified to ISO 27000 (orequivalent)
Number of confirmed information security incidents withregard to customer
privacy or losses of customer data

60%

–

50%

–

50%

–

1) Headcount, excluding apprentices, trainees, interns, and contract workers
2) Recordable work-related injury rate = number of recordable work-related injuries / number of hours worked x 200,000
3) % value reflects cumulative coverage of assessment of high-risk suppliers

EHS Management Systems
GRI ref.

Indicator description

ISO 9001 Certificate

55

54

53

53%

51%

% employees covered (based on FTEs)

79%

77%

73%

43

33

25

% locations covered in reporting scope*

43%

32%

24%

% employees covered (based on FTEs)

71%

62%

60%

54

52

45

% locations covered in reporting scope*

54%

51%

44%

% employees covered (based on FTEs)

77%

72%

64%

8

7

4

% locations covered in reporting scope*

8%

7%

4%

% employees covered (based on FTEs)

22%

19%

15%

Maintain Energy Management System

38

23

15

% locations covered in reporting scope*

38%

23%

15%

% employees covered (based on FTEs)

68%

43%

35%

ISO 50001 Certificate*

2019/2055%

Maintain Environmental Management System

GRI 403 – 8

2020/21% locations covered in reporting scope*
ISO 14001 Certificate

GRI 403 – 8

2021/22

ISO 45001 Certificate

28

20

22

% locations covered in reporting scope*

28%

20%

22%

% employees covered (based on FTEs)

39%

23%

40%

Maintain OHS Management System

71

65

65

% locations covered in reporting scope*

71%

70%

63%

% employees covered (based on FTEs)

87%

85%

76%

Including offices; Total locations: 103 in FY 2019/20, 102 in FY 2020/21, 100 in FY 2021/22

dormakaba

Sustainability Report 2021/22

Policies and Benefits
Policies (additional to Code of Conduct)% FTE covered

Whistleblower Policy

100%

Health and Safety Policy

90%

Equal Opportunity Employment Policy

92%

Drug- and Alcohol-Free Workplace Policy

65%

Equal Pay for Equal Work Policy

67%

Employee Counselling and Discipline Policy

70%

Anti-Bullying Policy

47%

Non-Harrassment/Non-Discrimination Policy

64%

Training and Professional Development Policy

50%

Flexible Working/Home Office Policy

83%

Open Door Policy

40%

Benefits% FTE covered

Vacation and holidays*

73%

Health insurance benefits for employees

68%**

New employee referral bonus

74%

Incentive/bonus scheme

54%

Health insurance benefits for employees’ families/dependents

47%

Disability benefits*

47%

Pension plan*

41%

Maternity, paternity, or parental leave*

47%

Financial contribution to external training

46%

Other special leave offerings*

55%

On-site fitness classes or gym discounts

17%

Measures%
implementing***

Provision of protective equipment to all impacted employees

91%

Training of relevant employees on health and safety risks and best working
practices

94%

Flexible organization of work available to employees (e.g. remote work,
telecommuting, flexitime, etc.)

91%

Regular assessment (at least once a year) of individual performance

91%

Provision of skills development training

76%

Recognition program65%

Official measures to anticipate or reduce layoffs and associated negative
impacts (e.g. financial compensation, outplacement service, etc.)50%

Working time reduction measures (part-time, job sharing, etc.)

47%

Employee representatives or employee representative body (e.g. works council)

56%

Communication on freedom of association and the right to collective
bargaining (e.g. trade unions, works councils)

47%

Annual medical exams

41%

Measures to promote gender and/or minority inclusion in the workplace

41%

Equal pay for equal work audit

41%

Employee assistance program (counselling for, e.g. psychological, addiction or
financial problems)

35%

Training on freedom of association and the right to collective bargaining (e.g.,
trade unions, works councils, etc.)

26%

Awareness training to prevent discrimination and/or harassment

38%

Dependent care support (on-site childcare, financial support or allowances,holiday care, referral services)9%*

Beyond legal requirements** An additional 28% of employees have universal public or mandatory private health insurance*** From surveyed countries. These cover 36 countries representing 97% of full-time equivalent
employees

KPI Summary

90

dormakaba

Sustainability Report 2021/22

GRI Index

GRI Index
GRI 100 Foundation 2016
GRI 102: General Disclosures 2016

Organizational profile
102 – 1 Name of the organization

About this report

102 – 2 Activities, brands, products, andservices

About dormakaba

102 – 3 Location of headquarters

About this report

102 – 4 Location of operations

Sites covered

102 – 5 Ownership and legal form

Corporate Governance

102 – 6 Markets served

About dormakaba

102 – 7 Scale of the organization

About dormakaba
Key Figures

102 – 8 Information on employees andother workers

About dormakaba

102 – 9 Supply chain

Supplier Sustainable Development

102 – 10 Significant changes to theorganization and its supply chain

About this report

102 – 11 Precautionary principle orapproach

Strategy & Approach

102 – 12 External initiatives

Strategy & Approach

102 – 13 Membership of associations

dormakaba is a member of various industry associations and organizations. The focus thereby lies onorganizations concerned with door hardware, the security industry, building, locks and fittings, as wellas metal, and glass hardware, with memberships varying across countries and markets. These
memberships include but are not limited to: Builders Hardware Manufacturers Association (USA),
Swissmem (Switzerland), Association of Swiss Locks and Builders Hardware Manufacturers, European
Locksmith Association, Security Industry Association (USA), The American Institute of Architects, UnitedStates Green Building Council, Door and Hardware Federation (UK), Singapore Manufacturing
Federation, German Sustainable Building Council, Construction Specifications Institute (USA), Glass
Association of North America, Canadian Security Association, American Association of Automatic Door
Manufacturers, China Construction Metal Structure Association, Hong Kong Fire Protection
Association, Japan Lock Manufacturer’s Association, Japan Security Systems Association, National Fire
& Civil Emergency Preparedness Council (Singapore), Architectural Door Hardware Association(Australia).

Strategy
102 – 14 Statement from senior decisionmaker

Letter from the CEO

Ethics and integrity
102 – 16 Values, principles, standards, and Our Code of Conduct outlines our values, principles, standards, and norms of behavior.
norms of behavior
Governance
102 – 18 Governance structure

Board of Directors
Strategy & Approach

Stakeholder engagement
102 – 40 List of stakeholder groups

Strategy and Approach

102 – 41 Collective bargaining
agreements

ESG Performance Table

102 – 42 Identifying and selecting
stakeholders

Strategy & Approach

102 – 43 Approach to stakeholder
engagement

Strategy & Approach

102 – 44 Key topics and concerns raised

Strategy & Approach

Reporting practice
102 – 45 Entities included in the
consolidated financial statements

About this report

102 – 46 Defining report content andtopic Boundaries

Strategy & Approach

102 – 47 List of material topics

Strategy & Approach

About this report
About this report

102 – 48 Restatements of information

About this report

102 – 49 Changes in reporting

No changes

91dormakaba

Sustainability Report 2021/22

102 – 50 Reporting period

About this report

102 – 51 Date of most recent report

About this report

102 – 52 Reporting cycle

About this report

102 – 53 Contact point for questions
regarding the report

About this report

102 – 54 Claims of reporting inaccordance with the GRI Standards

About this report

102 – 55 GRI content index

GRI Content Index

102 – 56 External assurance

About this report

GRI 300 Environment
GRI Standard

Disclosure

Materials

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Circular Economy & Materials

103 – 3 Evaluation of the management approach

Circular Economy & Materials

Circular Economy & Materials

GRI 301: Materials 2016
301 – 1 Materials used by weight or volume

Circular Economy & Materials
ESG Performance Table

EnergyGRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Energy & Emissions

103 – 3 Evaluation of the management approach

Energy & Emissions

Energy & Emissions

GRI 302: Energy 2016
302 – 1 Energy consumption within the organization Energy & Emissions
ESG Performance Table
Water

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Human Rights

103 – 3 Evaluation of the management approach

Human Rights

Human Rights

GRI 303: Water 2016
303 – 1 Water withdrawal by source
Emissions

ESG Performance Table

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Energy & Emissions

103 – 3 Evaluation of the management approach

Energy & Emissions

Energy & Emissions

GRI 305: Emissions 2016
305 – 1 Direct (Scope 1) GHG emissions

Energy & Emissions
ESG Performance Table

305 – 2 Energy indirect (Scope 2) GHG emissions

Energy & Emissions
ESG Performance Table

Effluents and Waste

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Circular Economy & Materials

103 – 3 Evaluation of the management approach

Circular Economy & Materials

Circular Economy & Materials

GRI Index

92

dormakaba

Sustainability Report 2021/22

GRI Index

GRI 306: Effluents and Waste 2016
306 – 2 Waste by type and disposal method

Circular Economy & Materials
ESG Performance Table

Environmental Compliance

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Adhering to international and local environmental
laws, regulations, and material restrictions is thebottom line in our Environmental Management. At
dormakaba, we recognize that environmental
responsibility is integral to producing world-classproducts. Therefore, we seek further solutions in
our manufacturing operations and material choicesthat go beyond laws and regulations, to minimize
adverse effects on the community, environment,
and natural resources, while safeguarding thehealth and safety of the public.
Our Group-wide Environment Directive regulates
the minimum business standards as regards theenvironment for product development andmanufacturing and/or service processes. The
Directive is based on the principles, prevention,
monitoring, reduction, and reporting regarding
topics like pollution, resources, waste, air emissions,materials, water, energy consumption, andgreenhouse gases. Environmental management isembedded at both the Group and local levels of ourvarious production sites. Several sites haveenvironmental officers, while others haveincorporated environmental management into
their quality assurance processes.

103 – 3 Evaluation of the management approach

Circular Economy & Materials
Energy & Emissions

GRI 307: Environmental Compliance 2016
307 – 1 Non-compliance with environmental laws
and regulations

Supplier Environmental Assessment

There have been no incidents of non-compliancewith environmental laws or regulations in FY
2021/22.

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Supplier Sustainable Development

103 – 3 Evaluation of the management approach

Supplier Sustainable Development

Supplier Sustainable Development

GRI 308: Supplier Environmental Assessment 2016
308 – 2 Negative environmental impacts in the
supply chain and actions taken

Supplier Sustainable Development
ESG Performance Table

GRI 400 Social
GRI Standard

Disclosure

Employment

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Fair Employment

Fair Employment

Due to the local nature of employment practices,
our segments, regions, and countries develop
employment policies according to local
requirements. Labor regulations and businessneeds are taken into consideration to find the best
and most sensible solutions on a local level.
103 – 3 Evaluation of the management approach

Fair Employment

GRI 401: Employment 2016
401 – 1 New employee hires and employee turnover

Fair Employment
ESG Performance Table93

dormakaba

Occupational Health and Safety

Sustainability Report 2021/22

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Occupational Health & Safety

103 – 3 Evaluation of the management approach

Occupational Health & Safety

Occupational Health & Safety

GRI 403: Occupational Health and Safety 2016
403 – 2 Types of injury and rates of injury,
occupational diseases, lost days, and absenteeism,and number of work-related fatalities
Training and Education

Occupational Health & Safety
ESG Performance Table

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Training and Education

103 – 3 Evaluation of the management approach

Training and Education

Training and Education

GRI 404: Training and Education 2016
404 – 1 Average hours of training per year per
employee

Diversity and Equal Opportunity

Training and Education
ESG Performance Table

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Diversity & Inclusion

103 – 3 Evaluation of the management approach

Diversity & Inclusion

Diversity & Inclusion

GRI 405: Diversity and Equal Opportunity 2016
405 – 1 Diversity of governance bodies andemployees
Human Rights Assessment

ESG Performance Table

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Human Rights

103 – 3 Evaluation of the management approach

Human Rights

Human Rights

GRI 412: Human Rights Assessment 2016
412 – 1 Operations that have been subject to human ESG Performance Table
rights reviews or impact assessments
Supplier Social Assessment

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Supplier Sustainable Development

103 – 3 Evaluation of the management approach

Supplier Sustainable Development

Supplier Sustainable Development

GRI 414: Supplier Social Assessment 2016
414 – 2 Negative social impacts in the supply chain
and actions taken
Customer Health and Safety

Supplier Sustainable Development

GRI 103: Management Approach 2016
103 – 1 Explanation of the material topic and its
boundary

Materiality Matrix

103 – 2 The management approach and its
components

Customer Health & Safety

Customer Health & Safety

GRI Index

94

dormakaba

Sustainability Report 2021/22

GRI Index

Our product management team is responsible forthis work, in close consultation with productdevelopment, as required by the Group Adaptive
Innovation Methodology (AIM) Directive anddefined by Group Innovation Management. Our
product quality assurance process, which includes
both internal and external resources, ensures thatour products have all the necessary labels.
In our business units and at our production sites,
ISO 9001 processes are implemented locally andmanaged by local quality assurance managers.
103 – 3 Evaluation of the management approach

Customer Health & Safety

GRI 416: Customer Health and Safety 2016
416 – 2 Incidents of non-compliance concerning the Customer Health & Safety
health and safety impacts of products and services

95dormakaba

Sustainability Report 2021/22

Contact
dormakaba Holding AG
Hofwiesenstrasse 24
8153 Rümlang, Switzerland
sustainability@dormakaba.com

Imprint
Project support: Renata Jendrolovits, Specialist Corporate Sustainability
Project management: Stephanie Ossenbach, Group Sustainability Officer
Editor: dormakaba Holding AG
www.dormakabagroup.com
Picture credits:© Natalia Gianinazzi, Supplier Sustainable Development© Link Arkitekter, Ratio Arkitekter, Bølgeblikk, Helse Sør-Øst RHF, Customer Health &Safety© Thomas Rodriguez, Diversity&Inclusion© Chao Zhou, Occupational Health & Safety; Diversity&Inclusion© d3sign, Cover page
© Chao Zhou, People© Billie Hustace, Planet© Michael Blann, Partnerships
Copyrights: © dormakaba Holding AG, 2022

GRI Index

96