dormakaba

Sustainability
ReportFinancial Year

2020/21

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Sustainability Report 2020/21

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Sustainability Report 2020/21

Introduction

Introduction
As we close our first sustainability strategic period, we realize just how
far we have come.
2020/21 in brief

Progress made during the sustainability strategic period 2015–2021
In the last five financial years, we have built a strong foundation in sustainability in line withsocietal expectations. We have shown leadership in our industry in several areas of oursustainability management as well. Key highlights include:• The sustainability governance and organization were defined in a formal Sustainability
Charter.
• We invested in sustainability management tools to improve our reporting processes
and data quality.
• We made significant steps to live up to our commitment to respecting human rights.
For example, we have conducted a human rights saliency assessment, developed ourStatement of Commitment on Human Rights, and joined the Responsible Labor
Initiative.
• dormakaba is one of the first big companies in the building industry to engage with
suppliers to assess their social and environmental performance through independent
third parties.
• We introduced the life cycle approach into our product development and publishednearly 100 Environmental Product Declarations and Health Product Declarations.
• We reduced 20% of our carbon footprint versus our baseline in financial year 2017/18.
• In 2019, we received a Gold Medal for our efforts in sustainability management fromthe rating firm EcoVadis.

Letter from the CEO
Dear Stakeholders,
Sustainability stands out as a rising trend in 2021, as we have seen accelerated action by
regulators towards achievement of national decarbonization goals, and investors’ increased
interest in the ESG space. In my first weeks as CEO at dormakaba, I have spent a lot of time
listening to our stakeholders, and they all confirm the importance of good sustainability
management. Therefore, I am proud to head a company that is already a sustainability
pioneer in many areas in our industry.
We continued our contribution to fight climate change by offering more green solutions forsustainable buildings and by decreasing the environmental impact of our own operations.
Investments in energy-saving projects and the purchase of green electricity have resulted in

Sabrina Soussan, CEOdormakaba

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decreasing our carbon footprint by 6% compared to last year. We have implemented manyenergy efficiency initiatives, including upgrading air compressors and boilers, for total energy
savings of nearly 3,000 Megawatt hours per year.
Turning to our customers, we have been intensifying our open communication on theenvironmental impact of our products, notably with our new Group-wide life cycle
assessment tool, that now covers over 70 products across six of our eight product clusters.
This has been a great achievement due to cross-segmental collaboration with many
purchasing, product management, and engineering teams across the globe. We noticeincreasing interest from our customers and expect the green building market to growannually by close to 15%. By providing Environmental Product Declarations derived from thetool, we support our customers in meeting the requirements for green buildings
certifications and achieving their own sustainability goals.
Furthermore, I am pleased to share that dormakaba is the first company within the accesssolutions industry to have emissions targets in line with climate science and approved by the
Science Based Targets initiative. Achieving this has required over two years of dedicatedhard work from many colleagues to expand our carbon accounting to cover 95% of ouroperational emissions and to develop a carbon inventory for our value chain emissions,
including for nearly 400 energy-consuming products.
Sustainability is, of course, also very much about people: I care for the health and safety of
our employees. We must and will progress here as well. I am heartened by some goodpractices I saw, starting with the rigorous measures we took to keep our employees safe
during the pandemic. I would also like to acknowledge the efforts of our team in Nogales,
Mexico which I have recently visited. The health and safety team has received external
government recognition for their management of the pandemic two years in a row, and they
achieved almost 500 days with no accidents or injuries.
On a Group-wide basis, we have now stepped up the focus on monitoring injury incidents,
addressing their root causes and taking corrective actions: in the reporting year, welaunched over 200 corrective actions to reduce future incidences. And the tone comes fromthe top, as safety is the first item discussed in my monthly management meetings with eachbusiness.
As you know, we are now closing a five-year strategic period, with strong achievements andprogress made in sustainability. I am grateful that our efforts in responsible businesspractices have been increasingly recognized externally, through improved scores in ESG
ratings and thought leadership. Beyond our strong conviction that sustainability brings value
to the company, these recognitions motivate us to further drive our contributions to asustainable future.
Looking ahead, I am personally committed to further drive sustainability and to place it at
the core of our vision and strategy. As a consequence, we will expand our sustainability
strategy with revised material topics, newly defined focus areas and ambitious targets: wewill, for instance, incorporate our emissions targets in our new strategy and, more generally,
increase our efforts to contribute to a low-carbon society.
Please learn more about our performance in this report and “stay tuned” about the next
chapter of our sustainability journey.
Sincerely yours,

Sabrina Soussan
CEO dormakaba

Introduction

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About dormakaba
Worldwide presence

Our businessdormakaba makes access in life smart and secure. We are one of the leading companies in
the global access solutions market. With our comprehensive portfolio and strong brands, weoffer our customers products, solutions, and services for anything related to access tobuildings and rooms from a single source. dormakaba has distribution channels andproduction facilities in all of the industries’ key markets and will accelerate global expansion
through a strengthened presence in Europe, the Americas, and Asia Pacific. dormakaba is a
growth-oriented company with a strong pool shareholder group that will ensure our longterm strategy. Under the leadership of the new CEO, Sabrina Soussan, who started on
1 April 2021, a strategy review process has been initiated. Details of a revised strategy are
expected to be communicated in the second quarter of the financial year 2021/22.
The current strategy is based on the following pillars:• Providing a superior offering of products and services to meet the needs of customers
and their installations along the entire life cycle;• Expanded presence in existing markets, vertical extension of these markets, andexpansion into new markets;• Achieving enterprise excellence by improving processes and driving efficiency andcompetitiveness along the entire value chain;• Leadership in innovation for superior customer value;• Active management of the portfolio of business activities and disciplined pursuit ofoptions for corporate transactions (acquisitions, divestments, joint ventures);• Efficient deployment of employees: having “the right people in the right roles”.
These strategic pillars are based on the two foundations of (1) sustainability and (2)enhancing the global brand power.

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Operating Model
dormakaba has divided the areas of business in which the company is globally active into
five segments. Access Solutions (AS), which comprises four segments, is structured byregion: AS AMER (North and South America), AS APAC (Asia Pacific), AS DACH (Germany,
Austria, and Switzerland), and AS EMEA (Europe, Middle East, and Africa). The segment Key& Wall Solutions is globally positioned and consists of the business units Key Systems andMovable Walls.

Our value chain

Introduction

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Our employees 1 )Employees by region

Employees by contract type1)

Employees by employment type

Headcount as at 30 June 2021, excluding apprentices, trainees, interns, and contract workers

The key performance indicators for the above human resources data and the fluctuation
figures available in the Employment chapter are based on 100% of dormakaba Group
employees as at 30 June 2021. The total workforce in this scope consisted of 15,250
employees, based on headcount. While the majority of our employees work full-time and on
the basis of permanent contracts, 6% are engaged on a part-time basis. Over 57% of theemployees in this scope are covered by collective bargaining agreements. In addition,
dormakaba developed nearly 250 apprentices, trainees and interns, and employed over
1,800 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 2021, which are located at the 102
sites in the reporting coverage (see Outro for a map of included sites).

Introduction

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Strategy & Approach
dormakaba defines sustainability as one of the key success factors tobeing recognized as the trusted industry leader. That is why
sustainability is one of the two foundations of the company’s current
business strategy.

dormakaba strives to promote sustainable development along the value chain as part of oureconomic, environmental, and social responsibility toward current and future generations.
We commit to an open and transparent dialogue with stakeholders to define strategies andactions based on clear goals and continuous improvements. We adhere to the precautionary
principle as the foundation of sustainability. Negative impacts on the environment andhealth 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 ourvalues, principles, standards, and norms of behavior.

Materiality
Our material topics were defined in the course of a comprehensive materiality assessment
and are valid for the years 2017–2021. They have been aligned to the four focus areas of oursustainability strategy: Transparency, Process & Production, People, and Products. Fulldetails on the materiality process are found in the Outro.

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Our focus areas
Transparency – We are committed to being a socially responsible corporate citizen and to
upholding the principles of international conventions, laws and internal rules and regulations.
We also expect our suppliers and business partners to adhere to similar standards and rules.
Process & Production – We seek to reduce the environmental impact of production andadhere to environmental laws and regulations. We strive to ensure a healthy and safe
workplace and to safeguard our customers’ rights to privacy and security.
People – We offer fair working conditions in which our employees can leverage theirstrengths and build their skills. We foster an engaged workforce where we have the rightpeople in the right roles.
Products – We are dedicated to producing high-quality, reliable products and solutions, aswell as supporting the health and safety of end users through good practice in productdevelopment. We aim to reduce our customers’ environmental impacts by designing
material- and energy-efficient products.

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Strategic targets
In line with this strategic approach, dormakaba has committed to achieving sevenoverarching sustainability goals in our current corporate strategy 2015–2021 as follows:
TargetDeadline

Financial year 2020/21

Meet target submission
September 2020
requirements as part of thecommitment to the
Science Based Targets
initiative (SBTi)

Operational and value
chain targets submitted
and approved by SBTi

Reduce Scope 1 and 2
carbon emissions by 5%
tCO2e (baseline 2017/18)

End of financial year
2020/21–20%*

Increase the share of ISO
14001 certified production
sites to >50% (baseline
2017/18)

End of financial year
2020/2150%

All manufacturing sites
maintain health & safety
management systems
based on ISO 45001

End of financial year
2021/2282%

All manufacturing sites
maintain energy
management systems
based on ISO 50001

End of financial year
2022/23

32%

Increase the revenue share End of financial yearof products with
2020/21environmental and/or
health product declarations
to >30%32%

Operationalize a supplieraudit system based onsustainability criteria

420 suppliers invited for
EcoVadis assessment and
146 assessed; Procedures
for non-participation andnon-compliance rolled out

End of financial year
2020/21

Status* Of which 17 percentage points are attributable to increased purchase of green electricity
and energy efficiency projects, and the rest due to various factors including the business
impact of Covid-19 primarily in the financial year 2019/20.

We have successfully achieved many of our expiring sustainability targets, particularly on ourcommitment to reduce carbon emissions, and succeeded in operationalizing a suppliersustainability audit system. For the latter, we have rolled-out escalation processes for noncompliance of the Supplier Code of Conduct and for non-participation in our supplierengagement program, as planned. In addition, we have submitted our Scope 1, 2 and 3
targets to the Science Based Targets initiative (SBTi) for approval. These long-term targets
have been approved, making us a pioneer in the access solutions market. The targets will beannounced soon as part of our upcoming corporate strategy review. In addition, we have
reduced our Scope 1 and 2 emissions by 20%, surpassing the –5% target we had set
manyfold.
For the further targets set to expire at the end of the financial year 2020/21, namely the aim
to increase the share of ISO 14001 certified production sites and the aim to increase revenue
share of products with environmental and/or health product declarations, we have seen vast
improvements. Indeed, with the launch of a company-wide life cycle assessment tool in thereporting period, we have over 70 Environmental Product Declarations in the pipeline. These
are undergoing third-party assessment and verification processes and will be published on
our corporate website soon. In total, we will have Environmental Product Declarations or
Health Product Declarations covering products representing 32% of our revenues, which is inline with the originally set target of 30%.
For both remaining targets, we continue to share best practice and work towards
achievement. Based on current planning, the target related to health and safety
management systems will be achieved. We have already increased coverage by 9 percentage
points versus the previous reporting year.
However, the target related to energy management systems is particularly challenging. Thisis due in part as many of our smaller manufacturing facilities such as local distribution
centers or local assembly centers lack the technical know-how and resources for setting up

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such management systems. Therefore, the Executive Committee has agreed to extend thistarget for local assembly centers for one additional year, to be achieved until the end of thefinancial year 2022/23. Manufacturing plants will remain under the original target deadline.
Despite the challenges, we are satisfied with the increase in coverage to 32% in the financial
year 2020/21 (versus 21% in financial year 2019/20).
As part of the strategy review process dormakaba will soon be launching a new vision
cementing the central role of sustainability in our company’s endeavors. As a consequence,
we will expand our sustainability strategy, as a core part of our overall corporate strategy,
with revised material topics, newly defined focus areas, and ambitious targets in 2021.

Sustainability governanceIn the financial year 2019/20, the sustainability governance and organization were defined ina formal Sustainability Charter, with the aim to improve strategy and resource planning aswell as monitoring of progress against targets and accountability across all levels of thecompany. The most fundamental changes include:• The Board of Directors is responsible for reviewing and approving the overallsustainability governance framework, and the Chairperson of the Board is explicitly
responsible for monitoring sustainability strategy implementation progress against
targets and for evaluating and monitoring sustainability risks and opportunities.
• A newly formed Group Sustainability Council is a cross-functional body of senior
management representatives of Group and segment business functions relevant tothe company’s material topics and is chaired by the Chief Executive Officer.
Below is an overview of the dormakaba sustainability organization. Further duties,
authorities and reporting channels for the various bodies are set in the Sustainability
Charter.

Sustainability organization

Regions / Sites

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Strategy & Approach

Board of Directors

Executive Committee

Approves the overall sustainability governanceApproves material topics and strategy. Monitors strategy

framework. The Chairperson is responsible for monitoring

implementation and ensures appropriate resource

strategic progress and evaluating sustainability risks andallocation.

opportunities.

Group Sustainability Council

Corporate Sustainability

Chaired by the CEO. Recommends strategic priorities,

Monitors and coordinates the implementation of thetargets, and objectives to the Executive Committee.

sustainability strategy across the organization. Advises on

Reviews annual sustainability action plans from Groupappropriate measures based on international standards

and segment level.

and external stakeholder expectations. Assesses theenvironmental and social risks in the value chain.

Sustainability Working Group

Segment Management Team

Develops concepts for sustainability initiatives andDevelops and reviews the segment’s annual sustainability

operationalizes them as appropriate. Consists of theaction plan. Ensures appropriate resource allocation.

Segment Sustainability Leads and representatives from

Sustainability is integrated in performance management.

other functions reflected in the Group Sustainability
Council.

Segment Sustainability Lead

Segment Sustainability Network

Adjunct member of the segment management team.

Acts as an advisory body that supports local

Monitors implementation of strategy at segment level.

implementation through the development of guidelines

Advises on appropriate measures for achieving

and knowledge sharing. Recommends and develops

sustainability commitments.

concepts for sustainability initiatives and operationalizes
them as appropriate.

Regions/Sites
The so-called Site Head is responsible for local
implementation of annual strategic plans and reports on
progress to targets. Locations with over 100 employees
have a local sustainability team.

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Strategy & Approach

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 and collaboration.
In order to identify and select stakeholder groups for dialogue, we held workshops withinternal experts in the financial year 2015/16. Specific target groups were selected
depending on the aims of the stakeholder engagement. As an example, a high-levelsegmentation of customer stakeholder groups was validated based on input from country
managers in the frame of our annual brand tracking survey. In another example,
stakeholders for the human rights dialogues were selected based on relevance of the job
function, such as health and safety managers or authors of related policies such as the
Supplier Code of Conduct. In addition, external stakeholders, including NGOs and humanrights experts, were invited to provide input to our analysis of salient human rights issues.
In the financial year 2020/21, sustainability stakeholder dialogues were held withrepresentatives from the Group Sustainability Council and with external stakeholder groups
including banking and investor partners, suppliers, customers, and governmental bodies aspart of our materiality assessment process. In addition, all employees were invited to give
their opinion on the most important sustainability challenges that we should address. Over2,000 employees participated, and results form an integral part of the ongoing developmentof our sustainability strategy as part of the upcoming new strategic cycle.
Stakeholder

Key topics and concerns

Platforms

Grievance mechanisms

Employees

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

dormakaba dialogue
Reporting channels
survey, bilateraldefined in the Code of
meetings with local
Conduct, open-door
Human Resources
policies, grievance
representative, employee mechanisms in place asworks councils or trade
part of collective
unions, safetybargaining agreements,
committees
meetings with tradeunion representatives

Investors

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

Interviews with Investor
Relations and membersof the Executive
Committee upon request

Architects,
specifiers

Product offering, product Annual brand tracking
design and quality,
survey, trade shows &trustworthiness andassociations, customer
reliability, price level,service hotlines
innovation

Customer complaint
process

Partners,
Technical training andinstallers,
product specifications,distributors,
product design andcustomers and end quality, trustworthinessusers
and reliability, price level,sustainability demands
for green building
certifications

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

Suppliers

Bilateral meetings,
surveys, on-site audits

Third party
whistleblowing hotline

Bilateral meetings

Direct contact

Qualification process

Local government Employment, health,safety, andenvironmental
compliance

Increasingly, customers,
partners, and end users inthe building industry aredemanding environmentallyfriendly products, giving riseto new market
opportunities. At the sametime, responsible businesspractices are demanded bylegislators and investors aswell as employees.

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Partnerships

External acknowledgments
dormakaba has been awarded a gold medal for our sustainability
management by the assessment firm EcoVadis, placing thecompany in the top 5% of all assessed companies in the assigned
sector. Our company is especially strong in the areas of labor andhuman rights (top 7%) and ethics (top 7%) among other companies
in our industry. The EcoVadis assessment for 2021 is currently
ongoing and results will be published on our website soon.

dormakaba received an encouraging score of B for the 2020 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 thestrong progress dormakaba shows on climate change and carbon emissions management.
Our 2020 CDP score is higher than the average score in our assigned sector (C) as well as
the CDP worldwide average and the European program average (both C).

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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 areambitious targets for people, planet, and prosperity which require partnerships between
governments, non-governmental organizations (NGOs), businesses, and institutions ofhigher learning to be able to achieve. If we are to achieve them, everyone should know them.
Because less than half of the global population has even heard of them (OECD, 2017 ),dormakaba aims to increase stakeholder awareness of the SDGs, especially within our
workforce, which we have done through our Enterprise Social Network. As a first step tocontribute to the SDGs, we have mapped our defined material topics to the targets of the
SDGs. While it is essential to achieve all 17 Global Goals, we can make a substantial
contribution to 8 of the SDGs by addressing our material 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
People spend up to 90% of their time inside buildings and many indoor environments havepollution levels two to five times higher than outdoor levels. It is therefore our responsibility
to ensure that our products do not contain hazardous materials that may harm people’s
health. We provide our customers with transparent product declarations on the materials
used, including those under the Health Product Declaration and Declare standards, as wellas those in accordance with related regulations such as REACH and RoHs. Several products

Sustainable Development Goals

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have qualified as testing for low emissions of volatile organic compounds or as “Red List
Free”. This means they are free from the worst-in-class materials prevalent in the building
industry, which pollute the environment, bioaccumulate to toxic levels in the food chain, and/or are harmful to construction and factory workers. Today, 32% of our products are coveredby a Health Product Declaration or similar standard, such as the Declare Label.
We continuously work to reduce the use of hazardous materials in our production processes,
and our filter systems ensure that potentially hazardous substances are not released
externally. Activities include the substitution of solvent-based paints for water-based paints,
and using web-based systems that allow facilities to easily analyze the current hazardous
materials in order to prioritize for material substitution.

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 about sustainable development, we regularly communicate oursustainability initiatives to employees through our intranet. We have made good progress indeveloping the skills of our workforce. For example, 83% (10,183 employees) have completed
at least one eLearning module, compared to 80% in the previous financial year. We keep
adapting our learning and development portfolio to current trends. In the financial year
2020/21 it was influenced by five drivers: the Covid-19 pandemic, customer needs,
digitalization, employee development needs, and cybersecurity.

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Goal 6 – Clean Water and Sanitation

Goal 6. Ensure availability and sustainable management of water and sanitation forall
By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing
release of hazardous chemicals and materials, halving the proportion of untreatedwastewater and substantially increasing recycling and safe reuse globally (Target 6.3).
By 2030, substantially increase water-use efficiency across all sectors and ensuresustainable withdrawals and supply of freshwater to address water scarcity andsubstantially reduce the number of people suffering from water scarcity (Target 6.4).

Material Topic: Water
How we are contributing
Our electroplating processes inherently require strong controls on wastewater treatment,
because we are working with metallic ions that need to be captured, consolidated, anddisposed of properly before discharging the cleaned process water back into theenvironment. Our biggest challenge is how to most effectively separate the hazardous
material and concentrate it into a metals-rich sludge, so as to minimize total generatedmass.
We have mapped our facilities for the degree of water stress and scarcity in theircommunities, with a plan to focus our water reduction activities in those areas of high-water
stress. Several facilities have implemented water-use reduction projects. At the Huntsville(USA) manufacturing facility, for example, the water used for washing parts wasrecirculated into the system, resulting in a significant reduction of approximately 50% in
overall water usage for the site.

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
How we are contributing
We currently source renewable electricity for 32% of the locations in the scope of this report(see map in the Outro). We are focused on increasing our use of renewable energy as acentral component of our strategy to reduce our carbon emissions. This approach aligns withour commitment to the Science Based Targets initiative (SBTi) and the Paris Agreement.
In the financial year 2020/21, energy-saving initiatives were being implemented at various
sites in the reporting coverage. This work included retrofitting facilities to LED lighting andautomated control systems; upgrading equipment such as air compressors and an air dryer;
the optimization of heating and cooling systems; and the procurement as well as on-site
production of renewable electricity.

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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: Employment; Human Rights Assessment; Occupational Health &Safety; Freedom of Association & Collective Bargaining
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 for our 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, or thehandling 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). We are, however, also committed to further expanding our sphere of influence toour suppliers. This is why these principles are also enshrined in our Supplier Code of
Conduct and are part of our supplier risk 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: Emissions; 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. An
important first step was including a sustainable life cycle approach to product developmentin our Product Design Manual. We also invested in the development of a Life Cycle
Assessment (LCA) tool, which helps us to better understand the environmental impact ofour products during their whole life cycle. By using the LCA Tool, over 70 more
Environmental Product Declarations (EPDs) will be published by the end of the calendar
year. To supplement the existing EPDs, we have created a carbon inventory for nearly 400
products that consume energy in their use phase. We currently offer several products thatbring our customers energy efficiency gains, including the SafeRoute escape route system,
the ST FLEX Green and ST PRO Green sliding door.

Sustainable Development Goals

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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, andreuse (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: Effluents & Waste
How we are contributing
The generation of different waste streams is an inevitable consequence of our operations.
We monitor our waste by treatment method and by waste type. Approximately 76% of thewaste stream was recycled, reused, or recovered (including raw materials and energy
recovery) in the financial year 2020/21. Our contributions to the environmentally soundmanagement of chemicals and hazardous materials are detailed under Goals 3 and 6.

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: 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 andthe use of our products. Progress against the operational emissions target is being tracked
as part of our sustainability-linked credit facility. The targets will be announced publicly as
we unveil our new corporate strategy by the end of the calendar year. Furthermore, we
reduced our carbon emissions by 20% versus the financial year 2017/18 through increased
purchase of renewable energy and energy efficiency projects.

Sustainable Development Goals

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Focus Area Transparency
We are committed to being a socially responsible corporate citizen
and to upholding the principles of international conventions, laws andinternal rules and regulations. We also expect our suppliers andbusiness partners to adhere to similar standards and rules.
Fair competition &Anti-corruption

Human Rights
Assessment

Supplier
Sustainability
Assessment

By standing up to and rejecting anticompetitive behavior and corruption in all
forms, we enhance our stakeholders’ trust
while securing the basis for future business.

We acknowledge our responsibility to respecthuman rights as outlined in the UN Guiding
Principles on Business and Human Rights.

We are committed to leveraging ourpurchasing power to benefit those partners
whose values and beliefs align most closelywith ours.

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Fair competition & Anti-corruption
By standing up to and rejecting anti-competitive behavior andcorruption in all forms, we enhance the trust our stakeholders place in
us. This protects our reputation and secures the basis for futurebusiness.
Why it matters
Our mission is to make access in life smart and secure. This can only be realized if we work
together and consistently apply a legal and ethical approach in all matters. Trust andcredibility are built over many years but can be lost in a single moment. In particular,
corruption and anti-competitive behavior are unfair business practices that destroy society’s
trust in the economy and the business community.

Key activities
We aim to be a trusted global partner and believe our customers’ interests are best served
by focusing on our company value “Customer First” and strict adherence to all applicablelaws. Illegal business practices, such as corruption, subvert the rule of law and erode trust,
while anti-competitive behavior distorts markets and produces inefficiencies. Therefore, we
emphasize integrity, governance, and responsible business practices, and regard faircompetition as the soundest basis for our growth and corporate success. As a member of
the UN Global Compact, we are committed not only to avoiding bribery, extortion, and otherforms of corruption, but to developing related policies and specific programs, both internallyand within our supply chain.

dormakaba Code of Conduct & Directives
We set a clear tone from the top regarding compliance by providing guiding documents andtraining to all employees. Principles of antitrust regulations, anti-corruption and ethicalbusiness dealings, for example, are part of our Code of Conduct (CoC). The dormakaba CoC
is binding for all our employees. It is each employee’s responsibility to comply with laws andinternal regulations as per the CoC. The respective manager is responsible for ensuring that
employees know the regulations and understand expectations. In the course of therecruitment and onboarding process, new employees receive and acknowledge thedormakaba CoC.
Group Compliance publishes new directives and supports internal communication of any
related publications and topics, such as in the case of the Group Directive Antitrust.
Functional owners of the directives must ensure appropriate communication and training
for the respective addressees.
Group Compliance revised and published the Group Directive Antitrust and a new Group
Directive Anti-corruption. The latter was published early in the financial year 2020/21. This
directive sets Group-wide minimum standards for granting and accepting of benefits in the
public and private business sectors, including documentation and approval requirements
depending on certain thresholds, and the mandatory consideration of additional principles toprevent even the mere appearance of corruption. These include the principles of social
adequacy, transparency, and separation. As part of the roll out program, the focus in thefinancial year 2020/21 was on internal communication and the global anti-corruption
training initiative (see below section on increasing awareness).

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Reporting misconduct & grievances
The CoC outlines the standard procedure for reporting grievances and/or breaches of law.
As a first step, any employee should ideally contact their direct manager. Subsequently, thematter may be escalated to the local HR function, Group Legal, or Group Compliance.

Reporting channels

We strive to create a culture where employees speak up and are encouraged to addressconcerns as outlined in the abovementioned process. On matters of transparency, therespective manager is encouraged to contact Group Compliance directly. Group Compliancecarefully considers all notifications received and, depending on the matter, creates an action
plan or sets up a project to solve any potential issues. The remediation progress is tracked byGroup Compliance and may include direct legal advice, the involvement of external experts,
internal investigations, or the development of workshops or customized training. If
necessary, Group Legal and Group Compliance will involve the CEO and/or other relevant
members of the Executive Committee.
Although employees are encouraged to speak up, potential whistleblowers may want to stayanonymous for various reasons. Group Compliance implemented an integrity line
(whistleblowing tool) that allows dormakaba employees and third parties (e.g., customers or
suppliers) to submit notifications about potential violations of laws and threats to our
reputation. The dormakaba whistleblowing tool is available globally 24/7 and is offered invarious languages. Whistleblowers using the online tool receive a first response within 2–3
days and are provided with regular updates on their case, if a postbox allowing anonymous
communication has been set up.
An overview of reports of misconduct and investigative activities is shared with the senior
management, including in the annual Corporate Compliance Report, which is discussed with
the Audit Committee in detail.
Additionally, the whistleblowing system was assessed compared to the effectiveness criteria
for grievance mechanisms provided by the UN Guiding Principles on Business and Human
Rights. The results of the assessment are found in the Human Rights Assessment chapter.

Identifying & addressing risks
Antitrust and corruption risks are identified top-down and bottom-up. Risks can beaddressed in the company’s risk model as part of the global risk management process whichis conducted every six months. Within our risk evaluation process, the segments can addressrisks, including any perceived gaps within the internal organization and processes. Segment
management can also address relevant issues to Group Internal Audit during regular audit
planning and on an ad hoc basis. The Audit Committee can make use of a top-down
approach by mandating audits (either performed by Group Internal Audit or through third
party support) with a focus on bribery and corruption matters. Triggers include hints from
whistleblowers (received through anonymous letters, e-mails, or further whistleblowing

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reports), from the organization itself, from impressions during on-site visits, external
factors, or regional risk factors.
Regarding anti-corruption, Group Internal Audit integrates the Corruption Perceptions Index(CPI), an index developed by Transparency International as one criterion for developing its
internal audit plan. Procurement and sales functions, as well as processes, are regularly
subjected to internal audits. In each standard audit engagement, Group Internal Audit
verifies whether the principle of segregation of duties is maintained. Furthermore, risks are
identified and addressed in the course of advising the business or in training sessions.

Increasing awareness through training activities
dormakaba aims to ensure compliance with applicable laws by strengthening awarenessthrough employee training. Enabling employees to comply with legal requirements helps
avoid breaches of laws and negative financial impact to the company, and safeguards our
reputation. Group Compliance develops training models and activities, e.g., on faircompetition and anti-corruption. Group Compliance liaises with segment management
about the training initiatives within their segments. The latter can then give feedback on the
training strategy or indicate whether training content should be adjusted based on the local
setting or local legislation.
Our goal is to train every employee on our Code of Conduct (CoC). New employees receive
and acknowledge the CoC upon hiring, and an eLearning module on its contents are
regularly part of the onboarding package.
Since the publication of the Group directives on antitrust and anti-corruption, we havefocused on dedicated training for management and employees of relevant functions.
The antitrust training includes a blended training concept consisting of an eLearning and(virtual) live trainings to increase internal awareness and knowledge on antitrust issues. The
relevant target group (e.g., sales, procurement, general management) was identified andthen assigned the eLearning module, which was made available in different languages. Morethan 1,200 employees worldwide have participated in the eLearning, of which 100
participated in the financial year 2020/21. In addition, virtual classroom trainings wereconducted globally by Group Compliance in the financial year 2020/21, with participation of
more than 60 employees across all segments and various Group functions.
As regards anti-corruption, Group Compliance again applied a training concept comprising a
mix of eLearning and virtual live trainings. The target group includes management andemployees from sales and procurement, among others. While the anti-corruption eLearning
campaign is now well advanced with more than 3,100 participants, the live trainings haverecently re-started wherever feasible and subject to the ongoing Covid-19 restrictions. By
30 June 2021, more than 80 employees had participated in a live training on anti-corruption
and more will follow in the upcoming financial year.

Our performance
The biggest milestones of Group Compliance’s work in the financial year 2020/21 include thepublication of the Group Directive Anti-corruption, the launch of the corresponding training
initiative, and the further development of the Compliance Organization, focusing on internal
training, best practice sharing and further enhancing collaboration between Group
Compliance and the Compliance Ambassadors of all segments. It was also the second yearof implementation of the whistleblowing tool, which allows employees and third parties todisclose possible misconduct globally and anonymously. Awareness of the tool is promoted
via several means, including through feature stories on our intranet.
Through all reporting channels, including the whistleblowing tool, 20 incidents have beenreported and thereafter investigated in the financial year 2020/21. This is a slight increase ofreceived reports of potential misconduct compared to the previous financial year (19). In
around 50% of incidents reported, misconduct was confirmed, and appropriate corrective
action has been taken. Two incidents remain under investigation as at 30 June 2021.

Our whistleblowing tool isavailable in 9 languages forour internal and external
stakeholders

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With operations in over 50 countries, it is vital that we comply with all applicable laws andregulations at the local, national and international level. Compliance with laws andregulations is a key factor for the sustainability of our business. We confirm that there wereno legal actions pending or completed for anti-competitive behavior in the financial year
2020/21 known to us. There were also no confirmed incidents of corruption in the financial
year 2020/21 known to us.

OutlookIn the financial year 2021/22, dormakaba Group Compliance aims to continue its antitrust
and anti-corruption trainings.

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Human Rights Assessment
We acknowledge the responsibility to respect human rights asoutlined in the UN Guiding Principles on Business and Human Rights(UNGP).
Why it matters
In today’s ever more interconnected and globalized world, there is increasing public focus on
how companies are respecting human rights in their operations as well as through theirbusiness relationships across value chains. That means demonstrating that they are notharming 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, humanrights are interrelated, interdependent, and indivisible.
As a global company with highly complex supply chains, we are exposed to increased risks ofbeing directly or indirectly linked with human rights violations. We therefore treat the issueof human rights as a priority and require our business partners to do the same.

Key activities
Our human rights commitment was published in the financial year 2019/20 in the form of
the dormakaba Statement of Commitment on Human Rights. It was elaborated based on a
gap assessment, stakeholder consultations, and the salient issues identified (see details in
the following section) and approved by our then Chairman and CEO. In prioritizing thesesalient issues, we recognize that some groups may be at greater risk of negative humanrights impacts due to their vulnerability or marginalization. We also recognize that theevaluation of the severity of potential impacts may change and that other issues may growin importance over time. We will therefore regularly re-assess salient issues and humanrights risks based on internal and external stakeholder feedback and expert judgments.
In line with the “Protect, Respect, Remedy” Framework provided by the UN Guiding
Principles on Business and Human Rights (UNGP) and as outlined in the Statement ofCommitment on Human Rights, we recognize the important role the company has inrespecting human rights. We are guided by international human rights frameworks, which
include but are not limited to the UNGPs, the Universal Declaration of Human Rights(UDHR), the International 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
We are committed to fully respect the personal dignity, privacy, and individual rights of ourcolleagues, customers, suppliers, and other stakeholders. Our commitment to respecthuman rights extends to all individuals throughout the value chain, and we use therelationships with co-manufacturers, independent suppliers, and other business partners toencourage and promote the principles of the Statement of Commitment on Human Rights
throughout our network. We believe that we can influence others through leading by
example and therefore communicate proactively about our commitment.
Our aim is to conduct Human Rights Due Diligence (HRDD) throughout our business toproactively assess, identify, prevent, and mitigate actual and potential adverse human rights
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 and exercise
their fundamental human rights.

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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
We do not attribute more importance to one human right over another. However, for the
implementation of our human rights commitment, we prioritize human rights issues that are
most salient to the business – identified via a formal human rights 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 and formed the basis for the company’s Statement of Commitment on Human
Rights.
The stakeholder consultations were focused on the potential gross risk of human rights
impacts on rightsholders, as opposed to a standard risk assessment approach, which looks
at the risk to the company. The company’s current management of human rights-related
topics was not evaluated. In other words, saliency was defined based on the inherent humanrights 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 thecompany’s leverage and the potential severity of impact. Severity here is defined by thescale, scope, and remediability of the potential human rights impacts on people.
Where possible, we will strive to measure the actual impacts of our actions on the humanrights of potentially affected rightsholders.

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.

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dormakaba Human Rights Saliency Matrix

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

Potential human rights impacts

Illustrative example in our value chain(not exhaustive)

Child labor

Rights on protection for the child;
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 toslavery, servitude, or forced labor;
Right to freedom of movement

Migrant workers in plants hired
through recruitment agencies atrisk 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 on behalfof dormakaba facing injury risks:
lifting heavy equipment, unsafe
construction sites, road accidents,
etc.

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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 UNGPs.
The criteria are:• Legitimate• Accessible• Predictable• Equitable• Transparent• Rights-compatible• Source of Continuous Learning• Based on Engagement and Dialogue
Generally, the criteria of Legitimate, Predictable, Equitable, and Rights-compatible were
met well. Considering that the whistleblowing system has been implemented recently, somecriteria such as Source of Continuous Learning (i.e., identifying lessons for improving themechanism) and Based on Engagement and Dialogue (i.e., a feedback mechanism for users
regarding the processes of the system itself) could not yet be fully assessed. For the target
group of own employees, the grievance mechanism also met the Accessibility criteria well. A
description of our reporting channels is included in the dormakaba Code of Conduct. A
communication campaign has also been launched, including print media (poster campaign)for local implementation to reach production workers.
The assessment was also intended to be a source of continuous learning and for evaluatingareas for potential improvement, e.g., raising awareness of the system for other intended
users, such as external business partners, suppliers, etc. Accessibility for external users who
are unable to read or have no internet access is by the very nature of a web-based tool morechallenging.

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 the 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 human rights
road map.

Our performance
We focused on the following areas in the financial year 2020/21:
1. Assessing actual impacts
2. Integrating findings and committing to appropriate action
3. Remediating adverse impacts
4. Developing further policy commitments

Assessing actual impact
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. In the financial year 2020/21, we
fulfilled our commitment to carry out such an assessment to gain a better understanding of
migrant workers’ risks and vulnerability in our operations in Malaysia and Singapore.
In order to achieve this, we leveraged our membership to the Responsible Labor Initiative towork with local auditors to assess our operations based on the Responsible Business Alliance
Code of Conduct. The audits revealed, for example, that migrant workers under employment
had paid recruitment fees. However, under the Employer Pays Principle, the costs ofrecruitment should be borne not by the worker but by the employer.

In addition, dormakaba
issues an annual 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 the supply
chains or any part of thebusiness.

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In addition, we also worked together with the University of St. Gallen and commissioned a
study to gain deeper insight in tracing cobalt in fragmented supply chains related toelectronics components that we use in our products. The study identifies and maps key
actors within the cobalt value chain, along with the relevant legal frameworks. The researchalso assesses typical human rights risks, as well as governance and traceability challenges
and provides solutions based on desk research and expert interviews.
Recommendations to work together with relevant multi-stakeholder groups to amplify
activities were taken up and supplemented by our joining the Responsible Minerals Initiative(RMI). We will evaluate how to apply the RMI’s 10-step process for responsible sourcing ofcobalt as we continue to develop our due diligence.

Integrate findings and take appropriate action
Based on the human rights-related risks and impacts identified in Singapore and Malaysia,
we have developed prevention and mitigation measures. This has included several workshopswith local stakeholders to raise awareness, assess root causes, and develop solutions in acollaborative way. Besides priority findings related to recruitment fees, other findings
related to supplier responsibility, due diligence processes for recruiters, and lack ofcommunication on the whistleblowing mechanism were discovered. Mitigation measures
include, amongst others:• 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• Development of a responsible recruitment self-assessment questionnaire for precontracting/pre-qualification phase with labor agents and labor contractors

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 the financial year 2020/21, when it was
discovered that recruitment fees has been paid by foreign migrant workers in Malaysia, we
committed to fully reimbursing these fees dating back to those that had been paid even ten
years ago. All foreign migrant workers were interviewed to collect information on
recruitment fees paid and reimbursements have been made within the time frame
recommended by the Responsible Labor Initiative.

Developing further policy commitments
In the financial year 2020/21, we developed a Responsible Labor Directive as a result ofpolicy gaps discovered in the course of social audits. The aim was to give more concrete
guidance and minimal standards on topics such as freely chosen employment, working hours,
worker’s accommodation, and responsible recruitment on a global level. This was
supplemented by a specific Zero Recruitment Fees Directive as a preventative measure.
As regards our approach towards human rights, our biggest achievements in the financial
year 2020/21 were the social audits conducted in Malaysia and Singapore and thedevelopment of associated improvement actions, including reimbursements for recruitment
fees, and the development of our Zero Recruitment Fees and Responsible Labor Directives.
However, the biggest challenge of limited leverage and limited transparency in the upstream
and downstream value chain remains. This is especially true at the mineral extraction stage
or in terms of improper use of our products by end users. This is why we have planned tocontinue the development of traceability processes based on the findings of the initial study
on cobalt value chains.

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OutlookIn the financial year 2021/22, we will focus on the global roll out of the Responsible Laborand Zero Recruitment Fees Directives and on leveraging due diligence tools and guidelines
provided through our new membership in the Responsible Minerals Initiative, in order toimprove supply chain traceability.

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Supplier Sustainability Assessment
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.
Why it matters
We believe sustainable supply chains ensure the well-being of the people and environments
they procure from, as we seek to grow the 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.

Key activities
The rise of supply chain transparency legislation points to the increasing mandate that acompany must be aware of the economic, environmental, and social dimensions of its supply
chain, and that it must proactively monitor and manage those dimensions. Our global supply
chain is large and complex, which poses a challenge in this regard. Global purchasing
volumes with external vendors correspond to approximately 47% of total sales, making thecompany’s procurement strategy highly relevant to achieving our financial and sustainability
targets. The number of active suppliers for goods and services is approximately 25,600, withspend focused in Europe (47%), North America (26%), and Asia (18%).
The dormakaba Supplier Code of Conduct (SCoC) outlines our requirements with regard tohuman rights, fair working conditions, environmental responsibility, and business ethics,
among other things. It is integrated in our online bidding system and is also part of ourstandard supplier contracts.
To ensure our suppliers contribute to social and environmental well-being, we focus on threeareas:
1. Identifying supply chain risks
2. Supplier off-site assessments
3. Supplier on-site audits

Identifying supply chain risks
We have defined a target group for sustainability assessment based on identified
sustainability risk factors – such as origin country and the material content of the goods
purchased. 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 andEmissions; (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. This list will be reviewed in the regular course of
future impact and materiality assessments in our sustainability management.

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Supplier categorization for sustainability assessment

Supplier off-site assessments
As a further step in assessing the sustainability performance of our suppliers, we havepartnered with a leading provider for monitoring sustainability in global supply chains called
EcoVadis to reduce supplier risk and support supplier development. The assessment covers
21 sustainability criteria across four themes (environment, labor and human rights, ethics,
sustainable procurement).
We also apply a comprehensive self-assessment for all potential new suppliers as part of the
supplier qualification process. This general self-assessment includes basic sustainability
elements, such as management practice related to social benefits, formal employee
suggestion programs, and environmental management systems. The self-assessment
questions related to sustainability are regularly assessed and improved based on changes inour sustainability strategy and regulatory trends.

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 suchas internal Code of Conducts (CoCs), the dormakaba SCoC, and labor, health and safety
and environmental standards are checked. Auditors are asked to check documentation onsite related to:• Workers’ ages and identity records• Receipt of wages• Training and communication on internal CoC• 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 from specific locations, products, andperformance. This risk assessment results in a score ranking, indicating the frequency ofauditing required for the relevant supplier. In the financial year 2020/21, we conducted onsite audits for 26 suppliers in China. Regarding sustainability criteria, there were no findingsof non-conformance.

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Our performance
In the financial year 2020/21, we continued to make significant progress in our suppliersustainability engagement strategy in three key areas:• Scaling up supplier off-site assessments in collaboration with EcoVadis• Roll out of procedures in case of non-participation or non-compliance• Training of procurement employees on sustainability and the processes related to offsite assessments.

Scaling up off-site supplier assessments
The financial year 2020/21 was the second year of collaboration with EcoVadis on supplieroff-site assessments. Again, we invited around 450 suppliers to participate in theassessment. We saw substantial improvements in the participation rate, with 146 suppliers
joining the assessment versus 86 in the previous reporting year.
Of the 146 assessed suppliers, 37% achieved a bronze, silver, or gold rating by EcoVadis,
considered as moderate or advanced performance. However, the majority of assessed
suppliers (55%) had only partial performance, with an additional 8% considered to haveinsufficient performance. Improvement plans for 45 suppliers were requested because of theassessment, and no business relationships were terminated.
Overall score distribution **all our rated suppliers in the financial years 19/20 and 20/21

Procedures in case of non-participation or non-compliance
We have rolled out procedures and process flows for auditing rules and corrective actionplans in terms of sustainability performance of suppliers in the financial year 2020/21. At its
core is the integration of a sustainable development clause in contracts for new suppliers
and for existing 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.
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, or gold level, further
reassessments are required in three to five years. For suppliers with partial performance, an

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annual reassessment is required, and an improvement plan is defined within 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 on-site
audit. A corrective action plan is defined in the course of the on-site audit, with a one-year
implementation deadline. Suppliers are blocked or in active elimination for lack ofimplementation.
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 CoCs, acceptance of sustainability
assessments by providers other than EcoVadis, and monitoring and evaluation of suppliers
listed as blocked or in active elimination due to sustainability performance.

Training of procurement employees
To raise more awareness of the process and sustainability in general across the procurement
organization, an eLearning module was developed to train procurement employees on the
supplier sustainability assessments with particular focus on the new escalation processes.
Upon successful completion of the eLearning, procurement employees were invited to live“role playing” sessions, where participants had a chance to practice how to react to realworld scenarios on supplier’s questions – or refusal – of the EcoVadis assessment. In total,
320 procurement colleagues were trained in the financial year 2020/21.

Outlook
We plan to continue our collaboration with EcoVadis in the financial year 2021/22, aiming to
invite around 500 suppliers to be assessed. We will also monitor the progress of the 45
suppliers where we have made requests for improvement.

320 procurement
employees were trained on
supplier sustainability
assessments

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Supplier engagement program in collaboration with EcoVadis
EcoVadis is the leading provider of business sustainability ratingsfor global supply chains. They have assessed more than 75,000
companies on their sustainability performance. We sat with Adeline
Lefort, Customer Success Manager at EcoVadis to learn her
perspective on supplier due diligence and our performance.

70% of business impact on social and environmental topics is in the
supplier base. How do companies manage it generally?
Companies are more and more aware of their impact and want to mitigate risks along their
supply chains. Furthermore, there is a generally increasing demand both from the legislationand customers to ensure more transparency and visibility in the supply chain. According to
the Business Sustainability Risk and Performance Index 2020 of EcoVadis, the overallsustainability performance of companies is improving globally. In 2019, 57% of the rated
companies achieved scores 45 or higher (meaning good, advanced, or outstanding
performance), compared to 45.2% in 2015.
You have been working with us since 2019 on our Supplier Engagement Program. As anexpert in the topic, how would you describe our performance?
dormakaba was one of the first big companies in the construction industry to engage with
suppliers, which shows how innovative you are. Before 2019, you already had experience insupplier assessment and engagement by using your own self-assessment questionnaire. This“in-house” solution was, however, too time- and resource-consuming and with a limited
coverage. Based on this experience, you decided to collaborate with us to expand yourSupplier Engagement Program and developed a strategy to focus on high-risk suppliers,
materials, and countries in the first round, with ambitious targets set.
This approach already showed your commitment, but in order to perform better, we codeveloped an action plan. This includes, for example, the appointment of “regional
champions”, to engage with the buyers and through them with the suppliers. We also
developed an escalation process, to implement actions in case of refusal of the assessment
invitation. By also involving top management in the process, organizing internalsustainability trainings, and setting KPIs publicly, you clearly demonstrate your commitment
towards the topic.
Where do you think we could improve?
You have been doing a lot since you started the journey on supplier engagement andassessment, but we are talking here about change management, which needs time to be
fully integrated into the daily procurement processes. Procurement is generally reduced to a
cost reduction division, although this is also an area where risks can be mitigated and value
created. With your Supplier Engagement Program, this is exactly what you are aiming at,together with your buyer organization.
Considering your industry and pioneer role in supplier sustainability assessments, theresponse rate looks good (about 30%–40% global response rate) but there is still room for
improvement. Thanks to the action plan, the baseline for success has been set and will
ensure a better response rate.
What is the benefit for suppliers to go through the assessment?
Suppliers are increasingly understanding the value of improved sustainability performanceand being assessed by EcoVadis, as it enables them to grow and to create stronger
partnerships with their customers; moreover, it has a positive reputational value. If suppliers
are at the beginning of their sustainability journey and get a relatively low score during theassessment, we send them a corrective action plan to work on specific topics. They are
guided through this action plan, to improve their sustainability performance before the next
assessment.

Transparency

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Focus Area Process & Production
We seek to reduce the environmental impact of production andadhere to environmental laws and regulations. We strive to ensure ahealthy and safe workplace and to safeguard our customers’ rights to
privacy and security.
Environmental
Management

Occupational
Health & Safety

CustomerPrivacy

We focus on improving our management ofenvironmentally related processes andreducing our carbon emissions, energy andwater consumption.

The protection of the physical and mental
integrity and well-being of employees is a core
responsibility of dormakaba.

As a technology-oriented company, we place
great importance on safeguarding ourcustomers’ right to privacy and security.

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Process & Production

Environmental Management
We seek to reduce the environmental impact of our production and toadhere to environmental laws and regulations.
Why it matters
Every business, government, and individual has a role to play in meeting the goals of theParis Agreement. For our part, dormakaba aims to reduce our energy consumption andrelated emissions. We use the latest scientific knowledge to guide a sound management
approach. Our energy-intensive processes include melting, and aluminum and zinc die
casting. We use these materials to manufacture numerous products, including hotel andhigh-security locks, door closers, fittings, and door handles.

Key activities
We seek to reduce the environmental impact of our production and to adhere toenvironmental laws and regulations. We focus on improving our management ofenvironmentally related processes and on monitoring and reducing our energy consumption,
carbon emissions, water consumption, and effluents, as well as monitoring our waste
disposal and recycling rates.
Environmental management is embedded at both the Group and local levels of our various
production sites. Several sites have environmental officers, while others have incorporated
environmental management into their quality assurance processes.
Our environmental management covers the following aspects:
1. Energy and emissions
2. Water and effluents
3. Waste

Energy and emissions
The emission of greenhouse gases, which are generated through the use of fossil fuels, is oneof today’s biggest challenges. In 2018, we committed to setting science-based targets andto having these validated by the Science Based Targets initiative (SBTi).
In 2021, SBTi has approved our targets for operational and value chain emissions, including
emissions from purchased materials and the use of our products. We are the first in theindustry to have targets validated by the SBTi. Progress against the operational emissions
target is being tracked as part of our sustainability-linked credit facility. The targets will beannounced publicly as we unveil our new corporate strategy by the end of the calendar year.
As a further commitment, we have set an interim carbon emissions reduction target of –5%
tonnes of carbon dioxide equivalent (tCO 2 e) by the end of the financial year 2020/21 for thereporting scope and baseline of the financial year 2017/18. We are pleased to report that wehave exceeded this target level. We reduced 20% versus the baseline, with approximately
17 percentage points stemming from increased purchase of renewable energy and energy
efficiency projects. Other reductions in emissions are explained by decreased production due
to the business impact of Covid-19 particularly in the financial year 2019/20, consolidation of
production facilities in the USA, improvements in data quality and changes in seasonal
weather patterns.

Energy consumption
Total energy consumption was over 250,000 MWh in the financial year 2020/21. Electricity
and fuels for heating or manufacturing both play a crucial role in our production processes,
constituting nearly 80% of total energy consumption. The remainder is associated with thefuel consumption of our vehicle fleet.
Many components used to create our products are manufactured in-house, and purchased
parts require further processing, both of which impact total energy demand. As a result, we
focus many of our energy saving initiatives in this area.

We are the first within theaccess solutions industry tohave emissions targets
approved by the Science
Based Target initiative

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Process & Production

In the financial year 2020/21, energy saving initiatives were being implemented at various
sites in the reporting coverage. This work included retrofitting facilities to LED lighting andautomated control systems; upgrading equipment such as air compressors and an air dryer;
the optimization of heating and cooling systems; and the procurement as well as on-site
production of renewable electricity.
As a result, we realized total quantifiable annual energy savings of approximately
2,900 MWh for the sites covered in the scope of this report. In addition, over 58,000 MWh(45.5%) of the electricity that we consumed came from renewable sources. In our Access
Solutions (AS) EMEA segment, this share already reached over 80%. All other segments
showed a percentage of electricity consumption from renewable resources ranging from
34% to 60%.
Examples of energy reduction activities in the financial year 2020/21 included:• AS AMER at the Indianapolis (USA) manufacturing facility reduced natural gas usage
by approximately 11,000 million BTU/year after replacing a 4 million BTU gas-fired
space heater with a heating, ventilation, and air conditioning (HVAC) system. The
Montreal (Canada) manufacturing site included LEED certification criteria in its
building expansion project and the Reamstown (USA) facility switched to LED
lightning. The Nogales (Mexico) manufacturing site installed a more efficient air
compressor, implemented a lighting shutdown process, and started the conversion to
LED lightning.
• AS APAC optimized the usage of air conditioners at the Chennai (India), Yantai and
Shenzhen (China) sites. In addition, the Chennai facility completed the ISO 50001
recertification. The Taishan (China) manufacturing site has begun purchasing steam
produced as a byproduct of industrial processes from a neighboring facility, thus
eliminating the need to use a diesel boiler as had previously. These and otherimprovements resulted in annual energy savings of 5%.
• AS DACH at the Ennepetal (Germany) manufacturing site switches off therefrigeration system for several hours during weekends, resulting in energy savings of
29,120 kWh/year. In addition, the retrofit of LED lighting saved 22,080 kWh/year. At
the Singapore manufacturing facility we achieved around 1.4% (223,000 kWh/year)
reduction in energy consumption by optimizing the chiller and air handling unit system.
Our manufacturing facilities in Suzhou (China), Melaka (Malaysia), and Singapore are
now ISO 50001 certified.
• AS EMEA at the Fougéres (France) manufacturing facility changed its air dryers fromdesiccant to refrigerant technology, which decreases the electricity consumption of
the compressor by 3.5% on an annual basis. At the Wetzikon (Switzerland) facility, athree-year energy efficiency project has been completed with the modernization of
the heating, ventilation, and air conditioning (HVAC) system, which is to reduceheating oil consumption by 86,000 liters per year and carbon emissions by 288 tonnes
per year.

45.5% of our purchased
electricity came fromrenewable sources38

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in MWh2020/21

Energy consumption

252,574

Electricity

125,136

District heating

1,627

Heating fuels total

67,924

Heating oil and diesel for backup generators

6,828

Natural gas

59,334

LPG/propane

1,763

Vehicle fuels total

57,886

Diesel

44,174Gasoline

11,809LPG/propane

1,766

Other vehicle fuels: bioethanol and natural gas

138

Energy use

Purchased electricity by source

(MWh)

(%)

Energy intensity (MWh/mCHF net sales)

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Process & Production

Energy use by segment (MWh)Purchased electricity by segment (MWh) ** Including own generation

Percentage of purchased electricity from renewable sources by segment (%) ** Including own generation

Greenhouse gas emissions
In the financial year 2020/21, our total greenhouse gas emissions (GHG) amounted toaround 70,000 tCO 2 e. Nearly 60% were emitted as a consequence of electricity
consumption, followed by vehicle and heating fuel consumption, and volatile as well asprocess gas emissions. Climate-related initiatives implemented during the reporting year
resulted in total annual savings of approximately 15,500 tCO 2 e (nearly 21% of our total
footprint from own operations).
Due to the implementation of the energy-saving initiatives outlined above, we expect toreduce our annual GHG emissions by approximately 1,100 tCO 2 e. We also worked diligently
to source renewable electricity or generate own renewable energy wherever feasible, leading
to an annual emissions avoidance of approximately 14,400 tCO 2 e.
Examples of GHG reduction activities in the financial year 2020/21 included:• Our AS EMEA facilities in Milan and Castel Maggiore (Italy) switched to green
electricity, saving 66 tCO 2 e per year. The rollout of a fuel-efficient driving training
across UK & Ireland has been completed, with in-cab feedback technology built in into
about 100 vehicles; furthermore, electric vehicle charging points were installed.

Our annual greenhouse gas
emissions savings was
15,500 tCO 2 e40

dormakaba

Sustainability Report 2020/21• Key & Wall Solutions started a pilot project on e-mobility in Germany and expanded
the solar panel installation in the Senai (Malaysia) manufacturing facility, resulting inan annual carbon emission reduction of 19.8%.
Greenhouse gas emissions by source

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

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 20 tCO 2 e. 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 CO 2 during the growth phase to that released throughcombustion).
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. Whenreported according to the “location-based approach”, the Scope 2 emissions totaled 60,370 tCO 2 e.

Greenhouse gas emissions by segment (tCO 2 e)

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Carbon intensity

Year-on-year absolute Scope 1 and 2(t CO 2 e/mCHF net sales)

emissions(t CO 2 e)

As part of our commitment to the Science-Based Targets initiative, we carried out ascreening and carbon inventory development of Scope 3 emissions in the financial year
2018/19 . The screening showed that the largest sources of Scope 3 emissions stem frompurchased goods and services (75%) and use phase of sold products (11%). We also learned
that Scope 3 emissions constituted around 90% of our combined Scope 1, 2 and 3 carbon
emissions, highlighting the importance of Scope 3 emissions to our climate strategy. In asecond phase, we therefore developed carbon inventories for these categories of purchased
goods and services and use phase of products. For the latter, we calculated the footprint of
the 334 products that consume energy after installation, including those that are batteryoperated. For the financial year 2020/21, value chain emissions for the use phase of
products totaled 181,600 tCO 2 e. As mentioned, value chain emissions from purchased goods
and services represents the vast majority, totaling 802,400 tCO 2 e in the reporting period.
Scope 3 emissions: purchased goods andScope 3 emissions: use phase of products

services(tCO 2 e) 3

(tCO 2 e)

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.

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

Water and effluentsIn the financial year 2019/20, dormakaba reassessed the water stress levels for all our sites,
including those beyond the regular scope of this report. The new analysis revealed thatapproximately 40% of sites have the potential 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 the two databases Aqueduct Water Risk Atlas by the World
Resources Institute and AQUASTAT by the Food and Agriculture Organization. Results of the
updated risk assessment were shared with those sites having (1) high or extreme water
stress, and (2) high water consumption relative to other sites for development of mitigationplans. Commitment to water stewardship initiatives and reduction targets for seven ofthese manufacturing sites have been agreed in the financial year 2020/21.
Water stress level by sites** Based on all locations, including those beyond the regular scope of this report.

The majority of our total water consumption is municipal water used for cooling,
manufacturing processes, and for sanitation purposes. Wastewater is mainly discharged via
the local municipal sewerage system, in compliance with local requirements and treated bythird-party companies where necessary.
Examples of contribution to water-saving activities and good practices in effluentsmanagement in the financial year 2020/21 included:• AS AMER optimized the wastewater treatment process at the Indianapolis (USA)facility and achieved 50% increase in throughput and decreased the use of treatment
chemicals. At the Huntsville (USA) manufacturing facility, the water used for washingparts was recirculated into the system, resulting in a significant reduction of
approximately 50% in overall water usage for the site. At the Montreal (Canada)facility, 36% of the washing and urinal systems in washrooms are now touchless.
• AS APAC at the Chennai (India) facility installed an electromagnetic flow meter toquantify and control sewage discharge; furthermore, in the toilets and washroom
areas the new control valve solutions resulted in the reduction of water consumption
by 5% per year. At Taishan, the water consumption was reduced by 3% on a YoY basis
by correcting leakages in the underground pipeline and by optimizing water
consumption in the canteen.
• AS DACH at the Ennepetal facility replaced the gravel filter with a drum belt filter inthe wastewater treatment plant of the electroplating unit, which resulted in lower
zinc and iron levels in the wastewater; furthermore, they introduced a cobalt-freecoating process for corrosion protection. At the Singapore and Suzhou (China)
facilities, the water consumption trend is monitored, in line with the water
stewardship effort, which allows the detection of unusual levels of consumption.
• Key & Wall Solutions at the Lima (Peru) manufacturing facility established a newwastewater treatment plant, which is expected to recycle up to 80% of the water
usage. As the factory is not connected to the municipal water system, it will help toreduce water purchase by 70%.

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Water consumption

Wastewater discharge

(m3)

(m3)

Water intensity(m 3 /mCHF net sales)

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Waste
Next to water consumption and effluents, waste management is of key importance during
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. In
addition, scraps from turning and milling or punching are recycled, and returned, forexample, to the suppliers of the raw materials. Certified disposal companies arecommissioned to dispose of industrial waste and chemicals, and to recycle materials.
The generation of different waste streams is an inevitable consequence of our operations.
We monitor our waste by treatment method and waste type. Approximately 76% of thewaste stream was recycled, reused, or recovered (including raw materials and energy
recovery) in financial year 2021/21. At about 74% by weight, the largest proportion of waste
is scrap metal.
Examples of contribution to waste activities in the financial year 2020/21 included:• AS AMER implemented a program at the Nogales (Mexico) manufacturing facility toseparate organic and inorganic waste in the cafeteria. The organic waste is now
diverted to a local farm as animal feed and so the general garbage volume has been
reduced by 26%.
• In Germany, AS DACH has continued recycling 96% of the waste in the production
facility in Ennepetal (Germany).
• AS EMEA’s manufacturing facility in Konstancin-Jeziorna (Poland) introduced steps toreduce paper waste, for example through electronic document circulation, the reuse of
cardboard boxes and fillers for shipments, and the use of electronic order forms.

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Non-hazardous waste by type

Hazardous waste by type

(metric tons)(metric tons)

Waste by treatment path

Waste intensity(metric tons)(t/mCHF net sales)

Our performance
To ensure our environmental management is state of the art, we refer to international
standards for environmental management (ISO 14001) and energy management (ISO
50001). All manufacturing sites that have more than 100 employees, and use non-negligible
amounts of hazardous materials, are expected to maintain an environmental management
system based on ISO 14001. Those with production process that could potentially seriously
harm the environment are required to certify their environmental management system.
These processes include plating, anodizing, polishing, galvanizing, painting, and casting.

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Today, 50% of the manufacturing sites based on our baseline reporting scope in 2017/18
have achieved ISO 14001 (or similar) certification, which is in line with our strategic target on
increasing coverage to this level by the end of the financial year 2020/21.
In the financial year 2020/21, 9 of our manufacturing sites in Germany (VillingenSchwenningen, Velbert, Bad Berka), Austria (Herzogenburg, Eggenburg) and Switzerland(Wetzikon, Rümlang, St. Gallen, Lausanne), were ISO 14001 certified and handle
environmental issues according to the international standard.
Further, all manufacturing plants are expected to maintain an energy management system
based on ISO 50001 by the end of the financial year 2021/22. Smaller manufacturing sites(e.g., local assembly centers) have been given an extended deadline for achieving this until
the end of the financial year 2022/23. Currently, 21% of manufacturing sites have met thisstandard. In order to raise awareness and clarify expectations, a checklist on Group
standards for energy management systems was developed and shared with all
manufacturing sites.
Segment

ISO 14001
Maintain
Certificate Environmental
Management
System

ISO 50001
Certificate

Maintain
EnergyManagement
System5

AS AMER

2

13

AS APAC

35

1
5AS DACH

8

9AS EMEA

14

17

3
7
5

KWS

6

8

1

3

Total

33

52

7

23

% locations covered in reporting
scope*

32%

51%

7%

23%

% employees covered (based on
FTEs)

62%

72%

19%

43%

* Including offices

There have been no incidents of non-compliance with environmental laws or regulations in
the financial year 2020/21.

Outlook
We will continue our efforts to achieve our target towards full coverage of manufacturing
sites with energy management systems and to advance our global environmental activities.
Planned projects and initiatives include:• AS AMER will implement energy management systems at all manufacturing sites;
furthermore, it plans energy performance evaluations for the Indianapolis (USA) andMontreal (Canada) facilities. The Huntsville (USA) facility plans to evaluate thecurrent chemicals used to clean parts in the wash system. This initiative will allow thefacility to convert to a non-hazardous, alkaline cleaner and sealer that will only
produce small volumes of landfillable waste, and no byproducts requiring removal ofhazardous waste.
• AS APAC in the Chiayi (Taiwan) facility is planning to install a rooftop solar panel
system.
• AS DACH plans the conversion to LED lighting at the Bad Salzuflen (Germany) site,which is expected to result in annual energy savings of 186,278 kWh. In Melaka(Malaysia), we plan to purchase green electricity, aiming to reduce emissions by 2835
CO 2 e. The segment also plans to gain ISO 14001 certification at 3 locations inGermany (Bad Salzuflen, Bühl, and Zusmarshausen).
• AS EMEA at the Fougéres (France) facility will refurbish the heating and ventilation
system, while in Konstancin-Jeziorna (Poland) and Wetzikon (Switzerland) LED lights
and motion detectors will be installed.
• Key & Wall Solutions expects to implement ISO 50001 and ISO 45001 management
systems across 9 sites and three ISO 14001 certifications across various facilities.

Process & Production

45% of all our
manufacturing sites are
ISO 14001 certified

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Improving environmental management processes through matrix
certification
During the financial year 2020/21, nine of our operational sites in Germany, Austria, andSwitzerland became ISO 9001, ISO 14001, and ISO 45001 certified under one coordinatedaudit process. As a result, we have achieved a matrix certification, which simplifies
processes between the countries and saves audit costs and time, while also increasing
customer satisfaction.
ISO 14001, the most widely used international standard for environmental management
systems (EMS), helps to better manage and control environmental processes, reduce
negative impacts, and ensure legal compliance. ISO 14001 is accompanied by ISO 45001,
which additionally covers topics related to occupational health & safety, and ISO 9001, whichis concerend with quality management.
In the first year of the certification process the focus was, among others things, on theimplementation of environmental management processes, reporting, measurement, REACH
and RoHS regulations, as well as business continuity management, including risk analysis
and crisis action plans.
Despite the Covid-19 situation, which added even more challenges to this generally complex
audit process, we have successfully reached our goal. The dedicated and professional workof the Quality Managers and other team members, and the already existing quality-oriented
mindset of our employees all contributed to this.
One of the biggest benefits of having a matrix certification is that we need to work with
only one certification body, which audits one system instead of the three that we previously
had. Therefore, this adjustment obviously resulted in cutting expenses and saving time. In
addition, as we now use standardized processes and tools, the cooperation between
countries in this area is also easier and more efficient. And finally, as processes have been
simplified through harmonization, we are able to respond faster and better to customer
requests regarding quality and sustainability.
“The ISO matrix certification enables us to better support eachother across these nine locations, through sharing experiences andbest practices in quality management, occupational health & safety
and environmental issues. I am proud of this achievement, which is
the result of the successful cooperation of our QHSE (Quality,
Health, Safety, and Environment) teams in Germany, Austria, andSwitzerland. We are confident that this experience can serve as a
blueprint for future projects at more sites.”René Minder, Deputy Vice President Quality, Health & Safety,
Environment, Operations AS EMEA

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Occupational Health & Safety
Throughout our business and most especially in our manufacturing
sites worldwide, the health and safety of our employees is a priority.
Why it matters
The protection of the physical and mental integrity and well-being of employees is a core
responsibility of dormakaba. Accidents and work-related illnesses can be of a long-term
nature and entail costs to society and the company. We can only be successful in the longterm if we help ensure our employees remain healthy. Occupational health and safety (OHS)
addresses not only the safe operation of machines, ergonomic workplaces, and the handlingof hazardous substances, but also mental health issues, including stress, depression, andemotional well-being. We strive simultaneously to create optimal working conditions for our
employees and to ensure operational efficiencies.

Key activities
Throughout our business and particularly at our manufacturing sites worldwide, the healthand safety of our employees is a priority. We want to provide a safe workplace, though
injuries still occur in and around our facilities: including cuts, stumbles, commuting accidents,
burns in smelting operations, heavy lifting, or exposure to toxic fumes in galvanization
processes. Currently, dormakaba has only location-specific systems in place to align withnational regulations and standards, as well as ISO 45001 certifications in larger
manufacturing facilities.
It is our goal that, by the end of financial year 2021/22, all dormakaba manufacturing sites
will maintain an occupational health and safety management system based on the rigorous
standards set forth by ISO 45001. A total of 82% of our manufacturing sites have alreadyachieved this. These sites have designated safety personnel, safety committees, regularsafety training, and they collaborate with external partners to ensure that health and safety
standards are integrated in prevailing production processes at dormakaba.
In addition, 24% of the manufacturing sites covered in this report benefit from ISO 45001
certification. Nine of our sites in Germany (Villingen-Schwenningen, Velbert, Bad Berka),
Austria (Herzogenburg, Eggenburg) and Switzerland (Wetzikon, Rümlang, St. Gallen,
Lausanne), for example, successfully implemented ISO 45001 standards in the financial year
2020/21.
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

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 segments, 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 treated thesame as injury reports, and the respective supervisor follows up with the near-miss to ensure
it is corrected.

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Examples of our employee engagement and training activities in the financial year 2020/21
included:• AS AMER at the Indianapolis (USA) facility installed safety blue lights on the vehicles
and several dome mirrors at intersections, in order to reduce the risk of contact withpedestrians, as part of a comprehensive Forklift Safety Program. The facility storeshazardous waste in drums, which were equipped with automatic lids to ensure they
are properly closed at all times. Thanks to its health & safety programs, the Nogales(Mexico) facility remained accident and injury free for almost 500 days. For its
management of the Covid-19 measures and the implementation of essential business
operating guidelines, the facility received external recognition from the government.
Furthermore, AS AMER initiated conversations with employees on health & safetyissues and implemented their suggestions for improvements. For example, in Chino(USA) they introduced daily discussions in an open forum style and in Montreal(Canada) they dedicated a whole month for health & safety awareness.
• AS DACH continued to implement operational health management systems in all
departments in Germany, including defining roles and functions, and introducing
measures designed to promote health and reduce sickness rates.
• AS EMEA offers regular health & safety trainings and supporting materials for
employees. In UK & Ireland, each employee has their own health & safety training plan,and each field-based operative is also subject to unannounced audits to ensure they
are working in line with their training. Regular Toolbox Talks discuss different health &safety matters, for example Covid-19, working at height, use of ladders, andhypodermic needles.

Reducing hazardous materials
The potential impact on employees’ health of working with hazardous materials is of special
concern. Hazardous materials are used as cooling lubricants, as oils in machining and for the
cutting of raw materials. They are also used in the electroplating process to protect
materials from corrosion.
Examples of our activities to reduce hazardous materials in the financial year 2020/21
included:• The AS DACH manufacturing facility in Suzhou (China) completed renovations to thepainting system in order to switch over from solvent-based to water-based
application.
• AS EMEA at the Herzogenburg (Austria) facility established a new nickel bath in theelectroplating process, which allows longer operating time, reduces the amount ofchemical waste, and improves occupational health & safety. COSHH (Control of
Substances Hazardous to Health) Assessments and Material Safety Data Sheets areavailable for all substances used by our operatives in the UK & Ireland. The COSHH
register is regularly reviewed and any hazardous substances that cannot beadequately controlled are removed accordingly. Air quality testing has been carried out
on our Tiverton (UK) site and levels of dust, nickel, ethanol, and propane were found tobe far below the local workplace exposure limits. In Wetzikon (Switzerland) we have
set up a database monitoring the management of over 200 hazardous substances.
• Key & Wall Solutions at the Vittorio Veneto (Italy) plant installed 2 evaporators andreduced liquid hazardous waste coming from the nickeling and milling process by
about 90%.

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.
Examples of our safety personnel and safety committee activities in the financial year
2020/21 include:• AS APAC has designated safety personnel in Taiwan and Chennai (India). In the
manufacturing facility in Taishan (China) we established safety committees and a
new EHS manager was appointed. In addition, the facility in Yantai (China) conducted

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Process & Production

an external safety audit, which, combined with internal knowledge sharing, helped to
improve safety practices at the site.
• AS DACH started the implementation of health & safety management systems at 3
locations (Bad Salzuflen, Bühl, and Zusmarshausen).

Our performance
Among all our reporting sites – including offices – 20% have a health and safety
management system certified to ISO 45001 or the equivalent local standard; and 70%
maintain a health and safety management system. For these sites, health and safety
training goes beyond the mandatory requirements to include emergency and risk prevention.
For example, assessments of repetitive movement and heavy load-lifting, to prevent workrelated illnesses, take place at various sites.
Segment

ISO 45001
Certificate

Maintain OHSManagement
SystemAS AMER

118

AS APAC

2

15

AS DACH

3

10

AS EMEA

12

20

KWS

2

8

Total

22

65

% locations covered in reporting scope*

20%

70%

% employees covered (versus Group-wide FTEs)

23%

85%

*

Including offices

In the financial year 2020/21, 186 occupational injury cases were registered, compared to 231
in the previous reporting year. This is a recordable injury rate of 1.4 compared to 1.7 in theprevious reporting year 1) . There was an even split between injuries resulting in less than 3days of lost working time and those resulting in more than 3 days of lost working time. Cuts
were the most common type of accident, and most injuries were sustained to arms or hands.
Most accidents occurred in production plants, with the second highest occuring during
installation or service at customer sites. The most common root cause has been reported aslack of concentration. Through our global injury incident reporting tool, we have tracked over
200 corrective actions being implemented. The majority of corrective actions have beenorganizational safety measures. There were no fatalities as a result of work-related injuries
in the financial year 2020/21, nor were there any high-consequence injuries reported.
1)

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

Outlook
We will continue our efforts to ensure our employees remain safe and healthy. Planned
projects and initiatives include:• AS AMER will focus on implementing or expanding EHS training programs andsystems at the Indianapolis (USA) and Montreal (Canada) facilities to more effectively
train employees and strengthen overall safety culture. The Nogales (Mexico) site plansto pursue ISO 45001 certification.
• AS DACH plans to certify the Bad Salzuflen, Bühl, and Zusmarshausen (Germany)sites to ISO 45001.
• AS EMEA will implement health & safety management systems based on ISO 45001 in
Moscow (Russia), Budapest (Hungary), and Warsaw (Poland). In the UK & Ireland thereporting process on health & safety issues will be improved, and the HSQE team will
increase field visits to service branches. In addition, the vetting process for subcontractors is being reviewed and the approval criteria amended as necessary toensure compliance is met with all sub-contractors.

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Outstanding occupational health & safety performance in Mexico
Our manufacturing facility in Nogales (Mexico) received external recognition for health andsafety management related to the Covid-19 pandemic. The facility also achieved almost 500
days with no accidents or injuries, as a result of effective leadership and employee
cooperation.
The Covid-19 pandemic forced numerous companies to decrease production or even
shutdown operations in case protective measures could not be applied. During thesechallenging times, the dormakaba facility in Nogales could continue working unaffected as
an essential business, as a result of implementing and exceeding most of the preventative
measures recommended by the Mexican health authorities and adjusting the internal
guidelines and procedures.
For meeting the highest standard of the federal Covid-19 compliance program, the facility
was granted the Mexican Social Security Institute’s Sanitary Security Protocol certification.
The program included, among others things, employee trainings on health & safety,
protective measures, workforce management, safe “return to work” guidance, andtemporary pandemic policies.
The Nogales facility also received the Optimal Sanitary Performance certification from theprestigious International Society for Societal Performance & Kaufman Center for theiroutstanding achievement in keeping the pandemic under control in the plant. During a 3month project a multifunctional team of our employees collaborated with experts fromuniversities in Argentina, Spain, and Mexico to evaluate the effectiveness of the measures.
As a result of this cooperation, they also created a best practice manual, customized for the
Nogales facility and our employees.
The team in Nogales also deserves acknowledgment for another extraordinary achievement,
namely being injury- and accident-free for almost 500 days. A long list of measurescontributed to this accomplishment. This included the annual health, safety and environment
training program (312 training hours in total), daily communication and awareness-raising at
the beginning of each shift, the powered industrial vehicle and the machine guarding
program, and job safety analysis, among other things. Furthermore, the plant is STPS(OSHA equivalent) certified for occupational health & safety.
“We are proud what we have achieved this year, but most of all, we are proud of theemployees who helped us reach the goals we set for dormakaba Nogales. Thanks to theirefforts, we managed to keep our employees safe during the pandemic.” - Q. Adalberto Vega
Garcia, EHS Supervisor, AS AMER

The Covid Group and the Safety Committee together with CEO Sabrina Soussan and COO AS AMER
Alex Housten in Nogales (Mexico)

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Customer Privacy
As a technology-oriented company, we place great importance on
safeguarding our customers’ rights to privacy and security.
Why it matters
Customers and business partners place a great deal of trust in dormakaba as a premium
partner for safe, smart and seamless access and security solutions. dormakaba takes theprotection of data and information very seriously. Abuse and misuse of data andinformation can lead to major tangible and intangible damage due to, for example, relevant
information being unavailable, rendered unusable or incorrect, or – in the worst-casescenario – made available or accessible to a malicious third party.

Key activities
Safeguarding our customers’ rights to data protection and privacy includes obtaining databy lawful and fair means, protecting the personal data of customers by adequate
information security safeguards, and using customer data responsibly. dormakaba also
considers the proliferation of new technologies and security risks because we understand wehave a responsibility to protect sensitive information against unauthorized access, loss, or
falsification. We place a strong focus on:• Personal data, in particular customer and employee data
• Operating and business data
• IT systems• Financial data
Considering all information and data available within dormakaba, we pursue the following
security aims:• Confidentiality: confirmation that access to information is limited to persons entitled
to see it.
• Availability: entitled persons can access information during defined periods and fromdefined locations.
• Integrity: warranty that information is correct and complete.
The dormakaba Group Data Protection Officer, in cooperation with the Group Information
Security Manager, oversees our approach to customer privacy.

Information Security Management System at the core
To meet our security aims, senior management introduced an Information Security
Management System (ISMS) in line with best practice in the industry. Our Chief Technology
Officer (CTO) also acts as the Chief Information Security Officer (CISO) within the ISMS.
This management system is based on the international ISO/IEC standard 27001:2013, themost recognized standard in the field. Certification to the standard was achieved in thefinancial year 2019/20. The scope of the certification covers Group IT, dormakaba digital in
Europe and the USA, and digital-based product development in Europe, such as for theElectronic Access & Data product cluster. In the financial year 2020/21, the scope was
extended to include the workforce analytics IT tool.
As outlined in the Group Directive Information Security, the goal of the ISMS is to achieve
and maintain an adequate security level by leveraging risk management methods,
continuous improvement, and best practices – all adjusted to our needs. The risk
management included in the ISMS is used to identify, assess, and treat risks adequately.
Reporting to the CISO, the Group Information Security Manager is responsible for
anticipating and assessing new threats related to information security risks; and ise also
responsible for implementing the necessary security levels for dormakaba, as defined by the
Security Board in accordance to its Charter. Additionally, Information Security Coordinators(ISC) are responsible for the implementation of the ISMS within an assigned segment orGroup function, and for providing support during security audits.

Process & Production

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Process & Production

EU General Data Protection Regulation (GDPR)
Our internal compliance processes are aligned with the EU General Data Protection
Regulation (GDPR). The GDPR aims primarily to give control to citizens and residents overtheir personal data, bringing with it a new set of “digital rights” for EU citizens at a time
when the digital economy places increasing economic value on personal data.
We have set ourselves three objectives:• Compliance with requirements: the legal and contractual requirements for theprotection of personal data will be adequately implemented and complied with at all
times.
• Embedding in the organization: the protection of personal data is a centralcomponent of all projects, activities, and processes in which this data is processed.
• Continuous improvement: guidelines, procedures, measures, and structures for theprotection of personal data will follow uniform principles and be continuously
developed and adapted to changing conditions.
We have established a Data Protection Management System (DPMS), a manual, and adocument library to serve all employees. Where relevant, project managers must carry out
GDPR assessments prior to any project being activated. This also applies to the developmentof new products or apps. Product managers are provided with a guideline of GDPR
requirements, including of the legal requirement of applying Privacy by Design and Privacy
by Default in the development process.

Raising employee awarenessWe are aware that technological advances in IT security cannot always guarantee thesecurity of the entire business environment and that human behavior can affect information
security and the associated risks. Phishing and other social engineering techniques use thehuman risk factor. The trend has continued for such attacks, and we are seeing an increasein ransomware in society. Attackers are even using technologies such as artificial intelligenceto develop their attack scenarios and make fraudulent e-mails and messages appear more
real to the victim.
However, people can learn to deal with risks in a professional and smart way. Raising
employee awareness of information security risks is a continuous process that, if done
correctly, turns the root of the problem into part of the solution. With our information
security training programs, in which all our employees must participate, we not only train
employees to recognize suspicious messages, phone calls, and other social engineering
tactics, we also build a culture of information security awareness that enables us to manage
our risks in a targeted and effective way. The training series is made up of four modules:
Information Security, Phishing, Social Engineering, and Cyber Security.

Our performance
We have continued the mitigation of information security risks through Group-wide security
training in order to strengthen employee awareness. The eLearning for the four dataprotection modules was completed by around 5,600 employees in the 2019/20 and 2020/21
financial years.
We have published four new directives setting out the internal rules and regulations for dataprotection early in the financial year 2020/21. A reporting process with corresponding key
performance indicators (KPIs) has been developed in order to provide standardized reports.
The KPIs will be used to manage, monitor, and improve the data protection organization andthe DPMS.
While the company is regularly subject to attempted malicious information security attacks
or approaches, there have been no reported incidents resulting in breaches of customer
privacy or losses of customer data nor substantiated relevant complaints concerning
customer privacy within the financial year 2020/21.

5,600 employees completed
the eLearning modules ondata protection

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PeopleSustainability Report 2020/21

Focus Area People
We offer fair working conditions in which our employees can leverage
their strengths and build their skills. We foster an engaged workforce
where we have the right people in the right roles.
Employment

Training &Education

Freedom of
Association &Collective Bargaining

We strive to create an engaging working
environment t-so as to be an employer ofchoice for current and prospective employees.

Employee development is vital to maintaining
and improving the skills of our workforce andthe quality of our products.

dormakaba respects the right of all workers
to form and join a trade union without fear of
intimidation or reprisal, in accordance withnational laws.

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Sustainability Report 2020/21

Employment
We offer fair working conditions in which our employees can leverageon their strengths and build their skills. We foster an engaged
workforce where we strive to have the right people in the right roles.
Why it matters
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 global competitive position, which is why we have a strong people focus in our corporate
strategy. As a company with employees in over 50 countries, we must ensure an engaging
working environment to be an employer of choice for current and prospective employees.
We must also ensure that we treat employees fairly and with respect in accordance with ourcompany values, and that we provide them with equal opportunities and fair remuneration.

Key activities
A key element of our corporate strategy is that we continuously shape a productive andequitable working environment and foster an atmosphere of trust. As we strive to have theright people in the right roles, dormakaba offers fair working conditions in which our
employees can leverage their strengths and build their skills. This leads to an engaged
workforce and helps to minimize risks, such as loss of know-how and personnel shortages.
Our approach toward our employees is governed primarily by our Code of Conduct as well as
by country-based labor regulations and the local employee handbook, where available.
Our Human Resources (HR) management team is spread globally – in addition to Group HR,
there are HR professionals at the segment level and HR representatives at the local market
level in larger countries. Group HR provides strategic direction based on our corporate
strategy and develops global best practice programs accordingly. These programs can thenbe customized and implemented in each segment and region to respond to local market
requirements and conditions. The local HR representatives also develop and implement local
initiatives and programs suited to the needs of their employees, helping to react to thedifferent local customers and markets as effectively as possible. We continue to invest intechnology and business applications that allow us to more effectively deliver services to ouremployees, including a Group-wide Learning Management System.
Due to the local nature of employment practices, our segments, regions, and countries
develop employment policies according to local requirements. Labor regulations andbusiness needs are taken into consideration to find the best and most sensible solutions on a
local level. An overview of best practice policies across the Group can be found in thefollowing table.

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Sustainability Report 2020/21

Policies and benefits

Policies (additional to Code of Conduct)% FTE covered

Whistleblower Policy

100%

Health and Safety Policy

95%

Equal Opportunity Employment Policy

74%

Drug- and Alcohol-free Workplace Policy

74%

Equal Pay for Equal Work Policy

68%

Employee Counselling and Discipline Policy

67%

Anti-Bullying Policy

63%

Non-Harrassment/Non-Discrimination Policy

61%

Training and Professional Development Policy

54%

Flexible Working/Home Office Policy

44%

Open Door Policy

40%

Benefits% FTE covered

Vacation and holidays*

67%

Health insurance benefits for employees

63%**

New employee referral bonus

54%

Incentive/bonus scheme

52%

Health insurance benefits for employees’ families/dependants

42%

Disability benefits*

42%

Pension plan*

39%

Maternity, paternity, or parental leave*

37%

Financial contribution to external training

31%

Other special leave offerings*

28%

On-site fitness classes or gym discounts

16%

Measures%
implementing***

Provision of protective equipment to all impacted employees

100%

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

100%

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

94%

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

94%

Provision of skills development training

94%

Recognition program67%

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

67%

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

56%

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, etc.)

56%

Annual medical exams

53%

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

42%

Equal pay for equal work audit

39%

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

36%

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

33%

Awareness training to prevent discrimination and/or harassment

31%

Dependent care support (on-site childcare, financial support or allowances,holiday care, referral services)19%*

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

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PeopleTo provide employees with a working environment in which they can thrive, we focus ouractivities on the following four areas:
1. Engaging our employees
2. Creating an inclusive and diverse workforce with equal opportunities
3. Fair remuneration and benefits
4. Employee attraction and retention

Engaging our employees
High employee engagement has been proven to lead to increased productivity, decreases in

Read also about theimportance we place on
Training & Education here.

workplace accidents, and improved customer satisfaction. A key method to support
employee engagement is to ensure a culture of open dialogue across the organization.
In order to gauge employee sentiment, engagement, and the potential impacts on wellbeing during the pandemic, a global Pulse Check was conducted in April 2021. Thirteen survey
items covered the topics of (personal) well-being during the global pandemic, the employees’
own individual work situation, sentiment towards home office beyond the pandemic, thecompany strategy, our value “Customer First”, and confidence in the future of dormakaba.
The survey was available in 18 languages and 70% of dormakaba employees participated.
The survey revealed both strengths as well as room for improvement on a global level. The
main findings were:• High confidence in the future of dormakaba• High satisfaction with safety precautions taken to protect employees from Covid-19
on-site• Need for more employee recognition and for further promoting a “Customer First”
mindset• Low personal well-being during the pandemic in some countries• Strong feeling of being part of “one dormakaba” despite majority of office workers
still working from home
• Most office workers would like remote working to become a permanent option beyond
the pandemic
As a result, a global project team is developing guidance and recommendations on remote
working and a hybrid working model. Key questions from the dormakaba Pulse Check will be
included in the next dormakaba dialogue to measure progress.
dormakaba dialogue is a broader Group-wide employee survey conducted regularly to gauge
employee engagement and performance enablement. The latter focuses on, for example,
whether employees feel they have the required skills, tools, and information they need to dotheir jobs effectively. After the last survey, conducted in early 2020, team leaders discussed
the results in dedicated team sessions to develop actions e.g., on leadership behavior, team
topics, processes, and infrastructure, etc. in the financial year 2020/21. HR representatives
trained team leaders throughout the company on how best to communicate the results anddevelop their action plans. Over 850 teams worldwide worked with their survey results andlaunched more than 1,500 team actions, which they will follow-up on in their individually set
time frame.
A follow-up global survey is planned for spring 2022, to measure the effectiveness of theongoing actions.
In addition to the global employee survey, segments and regions have local solutions
designed to gather employee feedback, address employee concerns and grievances, andencourage employee engagement.
Examples of such activities in the financial year 2020/21 included:• In China, AS APAC implemented an “Employee of the Quarter” award program toshow appreciation for outstanding employees that live our company values. In Japan,
employees are invited to special lunch sessions with local management to share theirideas and suggestions for improvement.

70% of employees
participated in our Pulse
Check survey.

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dormakaba

Sustainability Report 2020/21• In France, AS EMEA provides employees with an opportunity to engage with the local
community through thier work with the Priority Education Network. Around 30
dormakaba employees volunteered to conduct workshops and training sessions at our
premises for schoolchildren to gain insight into our industry.
• In addition to dormakaba dialogue, Key & Wall Solutions organized weekly video callswith no specific agenda for all staff in Australia and Malaysia to offer an open forum
for employees to share their concerns and anxieties related to the current state of thebusiness but also related to the impacts of the Covid-19 pandemic.

Creating an inclusive and diverse workforce with equal opportunities
Our global presence and operations in various markets mirror our commitment to promote adiverse and inclusive workforce. As our Code of Conduct states, we respect the equality ofpeople and cultures. In the financial year 2020/21, female employees represented 29% of thetotal workforce. Employees aged between 30 and 50 make up the majority (55%) of
employees represented in this report.
The topic of diversity and equal opportunity is driven by local activities. Examples of activities
in the financial year 2020/21 included:• AS AMER implemented a partnership with a leading provider of diversity recruitment
to promote all open positions in the USA on minority and diversity job boards to reacha broader, more diverse candidate pool. Additionally, an intercultural training module
was launched at our Phoenix site aimed at increasing intercultural understanding with
the Hispanic culture.
• AS DACH started a scholarship program in which engineering students fromSingapore complete a practical semester at one of our facilities in Germany, in orderto support intercultural understanding of both markets.
• AS EMEA’s gender diversity program began its second year. It aims to promote more
women from within our own ranks, especially in commercial and general management
positions. A series of actions to start addressing the diversity challenges has beendeveloped, including a review of recruitment processes to remove gender biases in job
ads and interviews, increased focus on female talents in career progression anddevelopment, and actions to strengthen the self-affirmation of our female talents.
One initiative is the Female Leaders Network which now has 54 participants. The
focus is on self-development, mentoring, culture, and communication. The network has
regular meetings to collaborate and share experiences, work on self-development,
diversity projects, and learn from inspiring guest speakers.
• Key & Wall Solutions conducted trainings on equal employment opportunity, diversity,and anti-harassment in the USA.

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Employees

Board of Directors

Sustainability Report 2020/21

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Executive Committee

Fair remuneration and benefits
We aim to establish fair compensation that is determined based on the 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
and welfare programs. As stipulated in the Group Directive Compensation, we refrain fromoffering excessively low wages (i.e., wage dumping).
Examples of our fair remuneration and benefits activities that have continued in thefinancial year 2020/21 included:• In Singapore, AS APAC has continued its pledge to the Fair@Work Promise started by
the Tripartite Alliance. This is a commitment to fair employment practices based on
the five principles of merit-based and non-discriminatory recruitment, respect for
employees, fair opportunity for training and development, fair rewards and incentives,and adherence to labor law.
• The AS DACH segment has an Equal Pay for Equal Work policy in place, according tonational legislation in Germany, Austria, and Switzerland. Further, in Switzerland, anannual salary survey is carried out by an independent third party, as is standardpractice for all companies with membership to Swissmem – the Swiss association of
mechanical and electrical engineering industries. The analysis compares all the salariesof the member companies who use Switzerland’s general collective agreement as abasis for employment.

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.
Examples of recruiting and career opportunity activities in the financial year 2020/21
included:• In AS APAC, management recruits are provided with varied training and learning
opportunities. A special training program has been implemented for younger
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professional skills but also at shaping their behavior and mindset to be exceptional
contributors to the company and society.
• In order to better understand the reasons why employees end their employment
relationship, AS DACH in Switzerland implemented an exit questionnaire, which will be
used for evaluation and improvement of employee retention. In addition, several
measures were implemented to retain our employees during the Covid-19 pandemic,
including a bonus paid to compensate for restrictions in Austria and Germany, freetesting, and support for vaccinations.
• AS EMEA has launched an employee initiative called #profitUP in January 2021. This isa contest for the best ideas to improve sales or profitability and to develop creativity
and entrepreneurial thinking among all employees by inviting them to makesuggestions for business improvement. The best ideas that are also realistic toimplement within specific timelines and show measurable impact are awarded with acash prize and widely communicated. In addition, New Work@dormakaba has beenlaunched in Switzerland, where a step-by-step approach to the world of Work 4.0 has
been made, addressing topics like annual working time and more flexible forms ofwork.
Fluctuation

Overall fluctuation (in percentage and headcount), calculated withpermanent staff

In financial year 2020/21, a total of 1,492 employees joined the company and 1,700 left in thereporting scope. This corresponds with rates of 10% and 12%, respectively, which was ahigher leaver rate than joiner rate. Both rates are in line with those from the previous
financial year.

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 with

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Sustainability Report 2020/21

permanent 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).

Fluctuation by age and gender (in percentage and headcount of permanent staff)

The workforce aged under 30 again shows higher joining and leaving rates compared to theother age groups. This is consistent across all regions, and congruent with findings from astudy on general workforce turnover trends periodically conducted by human resources
consulting firm Mercer.

Our performance
Since the beginning of the Covid-19 pandemic, large focus was put on defining guidelines
and specific measures such as strengthened safety precautions in the production
environment as well as for sales staff and service technicians. Further guidelines adressed
office workers working from home for a longer period of time, and travel restrictions.
Another integral part was and still is providing our employees with informational material on
safety precautions and safe behavior to avoid the spread of the virus, and continuously
communicating updates to related measures, stay-at-home policies or lockdowns set by
local governments. Further, we continue to put a strong focus on offering regular testing
possibilities to our employees, and we have established a clear Group-wide guideline forsupporting Covid-19 vaccination as a responsible employer and corporate citizen.
The Covid-19 pandemic has slowed regular HR processes and plans for the financial year
2020/21, such as in extending our portfolio of employer branding measures. Nonetheless, weare continuously making progress in several areas. The follow-up process of the second
round of dormakaba dialogue was successful despite having to postpone necessary inperson team sessions and conducting the majority of sessions as virtual meetings.
Following the successful rollout of an eRecruiting system in Canada, Germany, and the USA
in the financial year 2019/20, the system was rolled out in Austria and Switzerland, and isplanned for further regions and countries.

OutlookAs mentioned above, the third round of dormakaba dialogue will take place in spring of 2022.
The implementation of actions planned during the last round of dormakaba dialogue is an
ongoing process. Further, segments and management teams will continue to work with theresults of the dormakaba Pulse Check and act on them where needed.
A global communication and implementation timeline for the abovementioned remote work
project is in preparation. This will be accompanied by training measures on leading remoteteams and on working remotely. Further eRecruiting rollouts in the AS EMEA and Key & Wall
Solutions segments for France, Spain, the UK and the Middle East and ScanBalt are planned
for the financial years 2021/22 and 2022/23.

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As part of our Talent Development Program, a project group is working on a proposal for a
global strategic framework on the topic of diversity and inclusion. Project results are
expected for the financial year 2021/22.
AS AMER plans to deploy unconscious bias training sessions for management, as well as todevelop functional career ladders that aid in an employee’s career path and development
plan. Exit interviews will be carried out to gain a deeper, more holistic view of why employees
leave and how we can prevent regrettable departures.
AS EMEA will continue its work on gender diversity, introducing an eLearning module on
constructive behaviors and further virtual learning on handling microaggressions anddifficult situations. Another major focus will be on reducing the social silence on gender
diversity, with all senior managers having dialogue sessions with their female leaders andalso working on the concept of allyship. In addition, the mentoring program “Time to Grow”
will kick-off where members of the Female Leaders Network will be matched with seniorleaders from across the business, who will guide and support them with their careerdevelopment.

Promoting gender diversity through the Female Leadership Network
The Female Leadership Network in the AS EMEA Segment was launched in September 2020
to support the career development of female professionals and improve the gender diversityof dormakaba’s leadership pipeline.
The Female Leadership Network focuses on a wide range of topics, including personal
development, gender stereotyping, communication, allyship, and mentoring. The programaims to enable women in mid and senior leadership positions to have the skills, confidence,and support they need to fulfil their professional ambitions.
The virtual workshops utilize traditional training methods to uncover the diversity andinclusion challenges faced, with a focus on dialogue sessions, self-discovery, teamwork, andrelationship-building. The meetings offer an open and inclusive environment for women todevelop. Learning with their peers and from the invited guest speakers enables theparticipants to master challenges along their career paths and utilize their strengths andvalues to lead.
The network is also working on projects to improve inclusion, generally within AS EMEA. The
most recent initiative of the network is the “Time to Grow” mentoring program, wherefemale participants are matched with senior leaders from across the business, who guideand support them with their career development. This is also an opportunity for reverse
mentoring and knowledge sharing, as it allows the senior leadership to learn about
challenges female leaders are facing across the regions. The current workshops mostly
include women in mid to senior leadership positions from various functions across the AS
EMEA Segment, with future waves likely to focus on more junior female leaders and talentsfrom atypical career paths.
“Inclusion initiatives help us to improve our corporate culture, andhow we treat people. Applying what we learn about gender diversity
to further types of diversity initiatives ultimately helps us to create amore inclusive workplace and become an employer of choice in our
industry.”
Tracey Storr, Deputy Vice President Human Resources UK, Ireland & BeNeLux

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Training & Education
Employee development is vital to maintaining and improving the skillsof our workforce and the quality of our offering.
Why it matters
Today’s dynamic and globalized world and rising trends towards digitization require newcompetencies. At the same time, many industries face serious skills shortages, especially inthe areas of information technology and digitization. Employee development is vital tomaintaining and improving the skills of our workforce and the quality of our products. We
want to offer careers instead of jobs and to prepare our employees for the fast-changing
world. This improves their engagement, performance on the job and increases their longterm employability. We will continue to invest in the development of our employees andbusiness leaders.

Key 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 segment or country level to serve local needs.
Local training includes a range of vocational training and dual study programs, language andproject management courses, as well as opportunities for job rotation. With our Learning
Management System (LMS), we provide employees with worldwide access to a variety ofeLearning modules, on topics ranging from product, sales, leadership. Within the LMS, wehave continued to offer LinkedIn Learning, which has a library of more than 10,000
eLearning courses. Our LMS also allows us to roll out global learning initiatives such as
information security training, compliance training, and antitrust training.
To provide staff with the competencies they require to safely and efficiently perform theirtasks 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
We view leadership as the ability to move oneself and others toward a common goal.
Specifically, we want our leaders and managers to act according to our company values andto apply constructive leadership styles (e.g., working toward self-set goals, developing
others, resolving conflicts constructively, cooperating) while acting as strong role models forour employees to follow. In line with our strategy and ambition, we aim to have the bestleaders in key positions. We are aware that this requires clarity and support for potential
leadership candidates in their development.
We have therefore compiled a Leadership Toolbox, which is a unique set of methods andtools we want our leaders to understand and apply, e.g. constructive leadership behavior,
best practice facilitation skills, and further core leadership skills and tools. This toolbox also
serves as the basis for a globally consistent rollout of leadership trainings, e.g., our standard
manager training Leading for Success and the senior manager training Leading Leaders. We
have also established two management development programs – the Advanced
Management Program (AMP) and the Talent Development Program (TDP) – to develop
future leaders of the company. The AMP focuses on further strengthening the leadershipand business expertise of already successful managers, while the TDP focuses on highpotential employees. Both programs are co-facilitated by our Executive Committee
members and supported by faculty from external business schools.

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PeopleExamples of our leadership programs in the financial year 2020/21 included:• The full range of leadership development trainings was virtualized. One example is theoriginal five-day classroom training Leading for Success. We developed three modules
which contain central leadership topics such as effective methods of leadership,
performance management, and employee development, paired with a lot ofinteraction. We also implemented the concept of a “learning buddy” where twoparticipants team up and share their learning progress in between the modules. A
series of Leading for Success training sessions were conducted with around 147
managers from various segments.
• AS DACH held virtual trainings on remote leadership in Austria and Switzerland, andpublished a Leadership Handbook.
• The first module of AMP and TDP 2021 took place in April and May 2021, which was
conducted for the first time virtually. Overall, 33 participants from all segments andGroup Functions from all over the world participated in various interactive sessions on
topics such as strategy, leadership, and innovation. The topic of finance was conveyed
through a computer-based simulation. Highlights included the sessions that were cocreated and co-facilitated by our CEO, Sabrina Soussan. The second module will takeplace in November and it is currently planned to meet in person.

Individual development and career management
Our combined performance and succession management process known as Perform & Grow
provides a common framework to measure and manage performance and potential. The
objective setting is based on the principle of Objectives and Key Results, a goal-setting
methodology that organizations use to facilitate growth, improvement, and innovation.
Employees and their managers are asked to formulate 2 to 5 key results for each objective
to ensure an appropriate measurement. The Perform & Grow process also includes the
documentation of individual development activities and related measures and trainings.
Furthermore, it provides criteria to identify high talent potentials and creates thefoundation for systematic succession management to ensure that each leadership position
has viable successors.
Examples of our career management initiatives in the financial year 2020/21 included:• We extended the number of users for Perform & Grow to 3,900 employees (more than
twice as many compared to the previous financial year) and will continue with further
rollouts in the coming years. To achieve this, we will continue to work together to alignPerform & Grow with local works councils wherever this is required. As an important
tool extension, we included a new Continuous Performance Management module,
which helps employees to document their achievements throughout the year.
• In AS APAC, we have developed and implemented our technical support competency
framework to enable talents in different locations to work easier on inter-segmental
projects and build the technical support capability required to meet current and futurebusiness needs.
• In Switzerland, Austria, and Spain, AS EMEA has successfully rolled out a career
management programs for product development specialists and managers. After agood start to the project, we are now restructuring job families and adding at least 2
new ones which have become relevant in the context of the Scaled Agile Framework.
This shows that we can evolve the system in line with the changing needs of theorganization. So far, we have created over 50 job descriptions and created a fullgrading system within the global framework, successfully allocating over 120
employees via the career management program.
• Key & Walls Solutions re-evaluates development plans for high talents twice a year.
Initiatives include special project assignment, experiences abroad, support for Master’s
programs and dedicated in-class or individual training plans. A succession plan is
deployed for all senior roles up to two levels below the Executive Committee.

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, health and

3,900 employees haveaccess to our performanceand succession
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safety, and product offerings. Additionally, the increasing digitalization of our products andservices also requires new competencies – for example, on big data analytics and artificial
intelligence. To ensure that our employees have the relevant long-term skills, we continue toinvest in their vocational development and in promoting their talents.
Examples of our vocational and technical training in the financial year 2020/21 included:• In AS APAC, we have launched a cross-selling academy in China to enable our sales
colleagues to provide more tailored solutions to our customers in different verticalmarkets. We are also in the process of piloting cross-team vertical sales projects.
• AS EMEA in the Netherlands has become the first Smart Building-accredited training
company in the region Rivierenland. Through this initiative, we are cooperating with alocal vocational school and several other parties and companies to set up a four-year
course called Smart Building. The content focuses on building more efficiently andsustainably through optimal cooperation and integration of construction andinstallation processes. In addition to innovative technical solutions, this also involves
innovative means of communication such as Building Information Modeling (BIM). As
part of the program, we will additionally host internships and apprentices.
• Key & Wall Solutions launched a digital transformation blended-learning program with
45 participants from all regions, functions, and organization levels supported byexternal digital transformation experts. The program was aimed at equipping
participants with know-how and practical insights on how to design, lead, andaccelerate digital transformation in the segment. The result was the design of thesegment’s digital road map, embedding various projects in their Core-Growth-Explore
business development map. Lean training and coaching for manufacturing employees
was also conducted, as was sales enablement training.

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PeopleOur performance
There were five drivers that influenced how we set up our learning and development
portfolio in the financial year 2020/21: the Covid-19 pandemic, customer needs,
digitalization, employee development needs, and cybersecurity.
Key drivers

Focus of activities

ExamplesCovid-19 pandemic

Development of even more online
learning content and a virtualized
training delivery;
Enabling employees to work
remotely;
Ensuring collaboration andteamwork remotely

Provided training and support fororganizing large virtual events;
Added new content to the toolbox
on working from home

Customer needs

Introducing further training tofocus on customer needs and thedormakaba strategy

AMP and TDP cover methods thatenable managers to identify
customer needs;
Vertical Learning Academy was
introduced in AS APAC tostandardize learning content,
create blended learning
experiences, develop internal
trainers, and enable theorganization to achieve crossselling and solution-selling indifferent verticals

Digitalization

Establishing agile project
management methods as analternative to waterfall project
management, to enable us todevelop products and services
faster and in more customeroriented manner

Provided certified trainings on
agile methodologies for around
200 participants between
January 2020 and May 2021 (i.e.,
SCRUM Master, SCRUM Product
Owner, Leading SAFe 5.0, SAFe
for Teams, ITIL4)

Employee development
needs

Improving employee learning &development (as requested in thelatest dormakaba dialogue
survey)Doubled the user base of Perform& Grow vs. previous year;
Invested in strengths-based
development;
Offered access to learning
content on LinkedIn Learning and
Coursera

Cybersecurity

Distributing global mandatory
trainings on cybersecurity

In January 2021, we completed
our Information Security
Awareness training program withthe assignment of the latest
module to more than 12,000
employees

We continue to expand the scope of Group-wide reporting on training hours per employee
toward our goal of full reporting scope in the mid-term. For the financial year 2020/21, thesites already reporting this figure covered 95% of our workforce based on full-time
equivalent employees (versus 87% coverage in the financial year 2019/20). For these, theaverage number of training hours per employee was 13 hours per year, which was lower thanthe previously reported figure (17 hours). We expected this result, as most classroom
trainings were not feasible under pandemic constraints. We relied on shorter, virtual
trainings instead where possible. In addition, we have increased scope coverage to include
smaller locations.
We have made good progress on developing the skills of our workforce. For example, over
12,000 employees now have access to our Learning Management System (LMS). To enable
hassle-free access, the LMS is now available through single sign-on, so employees can moreeasily access learning content from direct links in newsletters or on the intranet. In total,
83% (10,183 employees) of the users who have access to the system completed at least one
eLearning module in the past fiscal year, compared to 80% in the previous year.
The LMS is used for both global and local trainings, and the offering has been expanded. In
the financial year 2020/21, 281 new eLearning modules have been added, and 185 classroom
courses and 348 webinars have been offered on the platform. Of the new training courses
provided, 41% are product-related, usually with a focus on sales or technical aspects.

Over 12,000 employees
have access to learning
content in our Learning
Management System

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In general, compliance-related training modules continue to have the highest participation inabsolute terms, including those on the Code of Conduct, antitrust, and information
security. While many of these topics have been introduced in the past and continue to be
assigned to new employees, we have added a new module to the compliance training
portfolio. Starting in November 2020, we assigned an anti-corruption eLearning module tomore than 3,300 employees. The target group comprises mainly sales, service, procurement,
HR, and other functions who face a higher risk of exposure to bribery attempts. Combined,
the compliance-related training activities had 12,452 participants in the financial year
2020/21.
Our segments and Group HR regularly gather and evaluate participant feedback after
training sessions in order to maintain and continually adapt the quality of our training andeducation programs. In addition, our training programs are regularly evaluated as part ofexternal 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 potentiallyrequired remediation, which may include increased communication and/or modifying thetraining program.

OutlookBesides a general training program for all employees to help them understand the potentialchanges implicated by a new corporate strategy, which is currently under development, thetopics of compliance, digitalization, sales excellence, and growth initiatives in particular will
be of great importance on a Group-wide level. Examples of planned initiatives include:• We will develop additional modules related to information security for specific target
audiences and their training needs.
• We will implement a pilot for a global training approach for IT-related topics, with astrong focus on processes rather than pure application training. The new portfolio will
cover both off-the-shelf applications and customized solutions.
• More than 500 employees will participate in a global training program to support ourorganization on improving credit management and receivables collection across theend-to-end “Order to Cash” process. Individual learning paths for finance teammembers as well as sales & service managers will help us to tailor the training to thespecific needs of each group.
To ensure full coverage and management attention, we have agreed on a new standardized
approach for global training initiatives including a more centralized roll out, reporting, andfollow-up.
Examples of additional activities planned for the financial year 2021/22 on a businesssegment level include:• AS AMER sales enablement initiatives are underway and will focus heavily on Sales
Excellence, Sales Operations, Sales Marketing, and Field Sales in the financial year
2020/21. The segment will also launch an Early Talent Development Program, which isa 24-month hands-on learning program providing new college graduates with a unique
opportunity to rotate through different departments/disciplines within a function (orthrough multiple functions) to gain a deeper, more holistic view of the function/organization while solving complex business challenges. We will also partner with local
vocational schools in select areas to create a pipeline of entry-level skilled
tradespersons for manufacturing operations. Key areas of focus will be machining,
tool and die making, and welding.
• AS APAC will continue their journey of embracing Agile work methods and will certify
internal Scrum Masters, form an agile community, and leverage expertise fromexternal experts through project collaboration.
• Key & Wall Solutions will focus on building negotiation skills for procurement and sales
teams as well as offering training courses on remote selling.

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Investing in technology and knowledge base to improve sales
performance
The Sales Enablement Initiative of our segment AS EMEA aims, across the salesorganization, to improve the processes, information, skills, and tools that are needed tobetter serve customers and sell more effectively.
The development of the Sales Enablement Initiative started in March 2020, and soon thesales operating model was defined. It is built on three pillars: Great people, Efficient process,Common metrics.
Great people. Sales managers have a major impact on sales performance, therefore
improving their skills and competences is key. The Sales Leader Training program includes
ten modules on relevant sales topics (i.e., indirect and direct sales, international key
accounts, services sales), management skills, and coaching. The training content wasdeveloped in collaboration with the AS AMER Sales Enablement team, which had alreadylaunched a similar initiative. The program is compulsory for all our sales directors andmanagers across the AS EMEA segment. Besides this, the Remote Selling Training programprovides sales representatives with the skills and the confidence to effectively conduct sales
meetings in a virtual environment, which has been more common since the beginning of theCovid-19 pandemic.
Efficient process. To support the work of our sales representatives, we aim to implement a
harmonized Customer Relationship Management (CRM) tool in each country across AS
EMEA by the end of 2022. The first launch took place in France in June 2021. Furthermore, asales enablement platform, first piloted by AS AMER, is also being deployed to provide
relevant, easily accessible sales information to the salespeople and foster best practice
sharing across the countries.
Common metrics. We are implementing standardized sales processes, targets, and metrics,
which are discussed in weekly progress calls with the COO of EMEA, the five Region Leads,
the Segment Finance Lead, the Sales Enablement Lead, and the Segment HR & Sales
Enablement Lead to create a cadence, “Rhythm and Rigour”, as we call it. This brings moretransparency and makes it possible to continuously monitor activities.
One of the major outcomes of the program so far, is that we could create an international
community of sales professionals across the AS EMEA segment. The participants feel moreengaged and are proud to be part of the sales community.
“The Sales Enablement Initiative is already a successful program, as
it brings the sales teams into greater focus, changes the mindset ofthe segment to more customer centricity, supports decision-making,helps to achieve better forecasting accuracy, and to react more
quickly to changing customer and business needs.”
Paul-Olivier Raynaud-Lacroze, Senior Vice President HR & Sales
Enablement, AS EMEA

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Freedom of Association &Collective Bargaining
As a member of the UN Global Compact, dormakaba respects theright of all workers to form and join a trade union without fear of
intimidation or reprisal, in accordance with national laws.
Why it matters
The right of employees to form or join trade unions and employee representative
organizations of their own choice fosters our constructive dialogue culture at all our
locations. For dormakaba, this also facilitates structured communication with our employees
on fair working conditions, reducing turnover, and achieving high performance andengagement amongst members of our workforce. Our aim is to ensure that employees feel
comfortable in communicating openly with their leaders and managers.

Key activities
As a member of the UN Global Compact, dormakaba respects the right of all workers toform and join a trade union without fear of intimidation or reprisal, in accordance withnational laws. Furthermore, our employees are free to collectively bargain, if they so desire.
We work proactively with employee representative bodies to achieve positive results for both
employees and the company. Collective bargaining agreements are in effect in various
locations including Australia, Austria, Brazil, China, Colombia, France, Germany, Italy,
Mexico, New Zealand, Switzerland, and the USA. In Poland, alternative employee
representation is in place which is also based on a transparent election process. However,the committee serves in a more consultative capacity.
To guarantee the right of all workers to form and join a trade union and to bargain
collectively, dormakaba focuses on two areas:
1. Identifying risks, fostering openness and transparency
2. Negotiating for mutual benefit and performance gains

Identifying risks, fostering openness and transparency
In the financial year 2017/18, we conducted a comprehensive impact assessment along ourvalue chain (see Outro) to identify which sustainability topics were most relevant in which
geographical areas and steps along the value chain. The sustainability impact assessment
revealed that countries such as China, Malaysia, the United Arab Emirates, and the USA
present a higher risk when it comes to respecting the rights of freedom of association andcollective bargaining. Hence, we explicitly foster and ensure that employees can engage inunions and works councils in all our operating regions and business segments.
Specifically, our actions in the financial year 2020/21 included:• In Australia, AS APAC has reached an agreement with local trade unions to put
negotiations on hold due to the pandemic. However, during the pandemic, union
representatives were consulted on topics relating to the health and welfare of staff.
Discussions revolved around, for example, the wearing of personal protective
equipment, and hygiene procedures when on service calls, and leave allowances for atrisk workers.
• AS APAC subsidiary in Taiwan continues to explicitly forbid: (1) threatening,
disciplining, punishing, or firing workers because they exercise this right; (2) refusing tohire a candidate because of their association with trade unions; and (3) blacklisting ofunion organizers by providing their names and details of their activities to other
employers, or to employers’ associations.
• Key & Walls Solutions held regular, collaborative meetings with the works council toalign company plans such as granting worktime flexibility and conflict prevention, also
in conjunction with measures related to the Covid-19 pandemic.

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Negotiating for mutual benefit and performance gains
dormakaba regularly engages in negotiations of provisions in collective bargaining
agreements. These collective bargaining agreements allow dormakaba to improve its
business practices but also to offer improved employment provisions for staff. For thisreason, some local entities put works councils in place to ensure the representation of all
employees.
Examples of our collective bargaining agreements in the financial year 2020/21:• During the Covid-19 pandemic, AS AMER partnered with the local iron workers union in
Illinois (USA) and gained cooperation for the implementation of enhanced health &safety protocols to secure the continued operations of the site as an “Essential
Business Operation”.
• Negotiations to renew a collective bargaining agreement for the service operations in
Missouri (USA) have begun and will focus on remuneration.

Our performance
In the financial year 2020/21, 57% of our employees were covered by collective bargaining
agreements. This underscores the importance we place on fostering openness andtransparency with trade unions and works councils to negotiate for mutual benefit andimproved employment provisions. Our most significant achievement last year in securing andimproving core labor rights for employees is demonstrated in the examples above. However,our biggest challenge remains in respecting the right to collectively bargain in countries
where this is factually or legally impeded.

Outlook• In the financial year 2021/22, AS DACH will continue to work on further harmonizing
the different works council agreements in Germany and Austria, in order to offer
equal benefits and job conditions for employees in each country.
• In Australia it is expected that negotiations on collective bargaining agreements thathave been put on hold due to the pandemic will be finalized. These agreements will
include a focus on work-life balance, fatigue management, and thermal comfort.
• Additionally, Key & Wall Solutions will renegotiate a collective bargaining agreementwith local trade unions in the USA.

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Products

Sustainability Report 2020/21

Focus Area Products
We are dedicated to producing high-quality, reliable products andsolutions, as well as integrating our customers’ health and safetyconcerns. We aim to reduce our customers’ environmental burdens bydesigning material- and energy-efficient products.
Product-related
Energy, Emissions,Effluents & Waste

Materials

Customer Health &SafetyWe incorporate the latest product life cycle
approaches in our product development.

We focus on choosing materials that are bothsafe and environmentally friendly.

End user health and safety is an inherent partof our business plans.

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Energy, Emissions, Effluents &Waste
We aim to reduce our customers’ environmental impacts by designing
material- and energy-efficient products.
Why it matters
In terms of primary energy consumption, the building sector is one of the largest energy
users in the world – as a result, its influence on climate change is enormous. As a leading
manufacturer, we are committed to incorporating the latest product life cycle approaches
and environmental technologies to continuously advance our product development andimprove our, as well as our customers’, sustainability performance. This not only provides
new opportunities for our design and manufacturing processes; it addresses our customers’
expectations regarding environmentally friendly products.

Key activities
We aim to reduce our customers’ environmental impacts by designing material- and energyefficient products. We are dedicated to producing high-quality and reliable products andsolutions, while also integrating our customers’ desire for environmentally friendly options.
As a result, product design remains a core focus of our sustainability strategy, with anemphasis on energy consumption and carbon emissions during the product’s use phase, andwaste management and recyclability at its end of life.
The trend toward sustainable design and ecodesign is here to stay. With an average life
span of 40 to 50 years, buildings should ideally be constructed in a way that allows requiredmaterials and natural resources to be used efficiently. Green building certification schemes –such as Leadership in Energy and Environmental Design (LEED) or the German Sustainable
Building Council (Deutsche Gesellschaft für Nachhaltiges Bauen, DGNB) – rate thesustainability of an entire building. The green building market is forecast to experience a
CAGR of more than 14.3% through 2027. By developing sustainable products and providing
transparency on our sustainability performance, dormakaba secures our market positionand offers added value to customers seeking green building certifications.
To reduce product-related energy consumption, emissions, effluents and waste, dormakaba
focuses on three areas:
1. Product design with a life cycle approach
2. Greater transparency with Life Cycle Assessments and Environmental ProductDeclarations
3. Sustainability platforms for greater information sharing

Product design with a life cycle approach
Our sustainability commitment and life cycle approach are integrated into the company’s
Product Design Manual, which is binding for all new dormakaba-branded products in the
Access Solution segments. By integrating life cycle thinking in the Product Design Manual,
dormakaba is taking the first steps in integrating environmental impacts into our decisionmaking, as well as in product and process development. This product development anddesign process requires Aesthetic Design Approvals, so-called ADECO, to ensure our design
integrity. Each step in our design development stage requires close collaboration between
our engineers and producers. Final approval for preproduction is granted by Operations,
Product Development, Product Management, and Product Design. The manual’s productdesign requirements are binding for all new dormakaba-branded products and productranges. The life cycle approach covers the complete value chain from resources, production,and distribution to use and waste/recycling:

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Greater transparency with Life Cycle Assessments and Environmental ProductDeclarations
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 the production, distribution,and use phases which are quantified based on materials, energy consumption, transportroutes, emissions, and the life span of the products.
dormakaba uses two LCA approaches: cradle-to-gate and cradle-to-grave. The first
approach considers all production stage modules: raw material supply, transport, andmanufacturing. The latter covers all life cycle modules, which means that in addition to thecradle-to-gate stages, cradle-to-cradle analyzes the building construction process, productuse stage, and end of life, i.e., our upstream value chain. We mainly use cradle-to-gate “withoptions” so that we can select the relevant upstream life cycle module(s).
We quantify and disclose a product’s environmental impact through its entire life cycle in ourEnvironmental Product Declarations (EPDs), which are based on the international standards
ISO 14025, 14040, 14044 and the European Standard EN 15804. We have adopted them toensure that our environmental information is transparent, reliable, and credible. Our goal
was that by the end of the financial year 2020/21, products representing 30% of our total
turnover would have EPDs and/or Health Product Declarations (HPDs). To achieve this andto better support product innovations based on life cycle assessments in the design phase, asemi-automated dormakaba LCA Tool was implemented in the financial year 2020/21. With
this solution, we are able to speed up the EPD development process due to a more flexible,
less cost- and time-consuming approach. The LCA Tool (for semi-automated EPD
generation) is approved by the EPD program operator IBU. The advantage of an approved
LCA Tool is a more efficient way to generate EPDs in larger numbers, due to the possibilityof a short verification process once the system is third-party approved.

Sustainability platforms for greater information sharing
Product information from EPDs, HPDs, and Declare Labels can contribute to the Building
Information Modelling (BIM) and specifications or help attain the highest levels of green
building certification systems, such as Leadership in Energy and Environmental Design(LEED).
dormakaba publishes the product information from such product declarations on
internationally recognized sustainability platforms such as the DGNB Navigator or mindful
MATERIALS. These databases provide transparent environmental and health information
for users and ensure easy access to specific product data. By providing product information
on such databases, we seek to lower market entry barriers in the green building industry,making our inclusion in related bidding processes possible.

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Products

Our performance
The know-how we have acquired over the years enables us to set appropriate priorities in aconstantly changing international market environment with ever new demands onsustainability issues. At the same time, this evolving marketplace remains our biggest
challenge. We constantly exchange knowledge with our colleagues worldwide to remain
abreast of customer demands and to raise awareness on the importance of achieving acomprehensive understanding of sustainability issues.
We have been publishing LCAs in the form of EPDs since 2011. The first EPD we offered tocustomers was for our main door closer TS 93. Since then, our EPD and HPD portfolio has
steadily expanded to cover nearly 100 of our top-selling and tender-relevant products.
Our aim for the financial year 2020/21 was integrate the majority of our product clusters in
the new dormakaba LCA Tool. In parallel, EPDs for another 13 products, which were alreadyin the pipeline, have been developed outside of the LCA Tool.
We have successfully set up the dormakaba LCA Tool for 6 product clusters in the financial
year 2020/21. By using the LCA Tool, over 70 EPDs will be published based on theenvironmentally relevant data collected so far, pending third-party verification. This will
nearly double our EPD offering versus the previous financial year, which is a great
achievement, made possible by cross-segmental collaboration with many procurement,
product management, and engineering teams across the globe.
These efforts have substantially contributed to achieving the dormakaba sustainability
target of having EPDs and/or HPDs for products representing 30% of total annual revenue.

OutlookIn the financial year 2021/22, we will continue with our efforts to develop life cycle
assessments and EPDs for new products using the dormakaba LCA Tool, including for our
Safe Locks and Electronic Access & Data product clusters. The Key Systems business unit
(Key & Wall Solutions segment) will evaluate new packaging solutions and the viability of an
EPD for a key cutting machine, which would be an industry first.

Our life cycle assessments,
EPDs and HPDs coverproducts representing 32%
of revenue share (vs. 19% in
the previous reportng
period).

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Creating more transparency along the whole life cycle of our products
Under the leadership of the Product Development team AS DACH, we set up a semiautomated Life Cycle Assessment (LCA) Tool, which helps us to better understand theenvironmental impact of our products during their whole life cycle and to develop a higher
number of Environmental Product Declarations (EPDs). Thus, it will open more possibilities
for sustainable innovation.
The LCA Tool assesses the raw materials and processes in every phase of a product’s life
cycle, provides a transparent overview about the environmental footprint of the product,and supports the development of EPDs.
EPDs are increasingly requested by stakeholders such as customers, architects, anddesigners, as they are important for assessing the sustainability of buildings. EPDs describe
the environmental impact of a building product, based on life cycle assessments and provide
information about their functional and technical characteristics. So far, we have developed
nearly 50 EPDs and we have submitted LCA data to the third-party provider for verification
to develop over 70 more with the new tool, covering a broad range of product clusters(Electronic Access & Data, Door Hardware, Mechanical Key Systems, Entrance Systems,
Interior Glass Systems, and Safe Locks).
"The LCA Tool makes the EPD development process faster, more
flexible, and cost-effective, but most importantly it allows us tobuild an in-house competence center for life cycle assessment. This
increased efficiency will help us provide greater transparency formore products that will in turn support our customers in achieving
green building certifications.”
Melanie Schaumann, Manager Sustainable Projects, ProductDevelopment AS DACH

With the setup of the product cluster-specific LCA tools, we are more flexible in creating
EPDs and are able to provide our customers with a wide range of EPDs for their projects. It
also supports sustainable product development through a hot-spot analysis, which helps us
identify possibilities for sustainability improvements on existing products or even at thestart, during the product development phase.
“Our LCA Tool and the EPDs developed with it are credible andinternationally accepted. The tool is verified by the Institut für Bau
und Umwelt (IBU) and uses the GaBi database. All our EPDs arecompliant with ISO 14025, ISO 14040/44, and EN 15804, which are
the leading standards for environmental product labels worldwide.”
Lea Kullmann, Manager Sustainable Projects, Product Development
AS DACH

Products

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Materials
Knowing that healthier materials contribute to customer health andsafety, we focus on choosing materials that are both safe andenvironmentally friendly.
Why it matters
It has been well documented that healthier building materials have a positive impact onbuilding occupants’ well-being. We therefore focus on choosing product materials that areboth environmentally friendly and consumer safe to ensure we are simultaneously
addressing any impacts to the environment and to our customers’ health and safety.

Key activities
Our products are manufactured around the world using different processes. The mostutilized non-renewable raw materials include metals such as steel, brass, aluminum, nickel
silver, and zinc, as well as gypsum board, glass, and plastics. Other important materials arewood, paper, and cardboard which are made from renewable resources. Metal parts areoften converted, for example, into door closers, cylinders, key blanks, hotel locks, and glass
fittings. Glass, wood, and gypsum board are primarily utilized in sliding and revolving door
systems and movable walls.
The potentially greatest environmental risks lie in the processes used for (1) electroplating
and surface finishing, (2) painting, (3) melting, and (4) zinc and aluminum die casting. These
manufacturing processes are used at 35 of the 102 locations covered in this report. To
reduce our environmental footprint, we focus on monitoring and mitigating theenvironmental impact of these operational steps. When it comes to optimizing our choice ofmaterials, we focus on complying with international material requirements; developing
environmental and health-related product declarations; and utilizing the life cycle approach
whenever possible. In addition, since the primary extraction of metals from ore andsubsequent refining processes are resource-intensive, we use metals with recycled content
whenever possible. Further, we generally send scrap metal to recycling.
Knowing that architects and building inhabitants wish to have more transparency on thecontent of products, we highlight the possible health impacts of our products. We havedeveloped various Health Product Declarations (HPDs) and regularly perform tests – forexample on volatile organic compounds (VOCs) in a movable wall product or on hazardous
substances in electronic products. To reduce our environmental and customer impacts
related to the choice of materials, dormakaba focuses on three areas:
1. Complying with international material requirements
2. Health-related product declarations
3. Closing cycles

Complying with international material requirements
We manage compliance issues on both an ad hoc and strategic basis. Customer and internal
requests on used materials or training, for example, are addressed ad hoc; while liaising withexternal legal support is a more strategic endeavor in order to review changes to regulatory
requirements. Through our Supplier Code of Conduct, we also set clear expectations that
our suppliers should actively support ongoing efforts to manage and demonstrate productcompliance with the abovementioned regulations.
In the financial year 2020/21, the major impact on our Material Compliance efforts was theamendment 2015/851/EU of the European Waste Framework Directive 2008/98/EC
coming into force. This updated regulation demands all manufacturers, distributors, andimporters of products in the European Union to upload information on articles and complex
objects containing so-called Substances of Very High Concern (SVHC) into the SCIP
Database created by the European Chemical Agency (ECHA).

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Health-related product declarations
We offer various health-related product declarations which transparently account for thematerials found in our products. These are in the form of HPDs, Building ProductDeclarations (BPDs), or Declare Labels, depending on local market requirements.
An HPD provides a detailed list of the materials and contents of a building product and theassociated effects on human health. The declaration is a common reporting format withwhich the required transparency can be guaranteed. BPDs are particularly relevant in the
Scandinavian market and are based on the standard from the Byggvarubedömningen(BVB), a business association of Sweden’s major property owners and building contractors.
The requirements have become more extensive in recent years. Information must be
provided on chemical content and life cycle assessment, in addition to other documents such
as Material Compliance Statements or Safety Data Sheets.
In the financial year 2020/21, we developed six new HPDs which all followed the newstandard 2.2. We also published BPDs for the Argus half-height sensor barriers, and for the
Scandinavian DEA 90x panic exit device series.

Closing cycles
Several production sites focus on closed-loop systems in their material use, including inAustralia, Brazil, China, Italy, and the USA. 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 the original producer, who then uses it to make ourpurchased materials, resulting in a closed-loop system. For over five years, the production
facility in Vittorio Veneto (Italy) accomplished this with over 70% of produced scrap goingback into its closed-loop system. Even intracompany trade of scrap takes place, as in theexample of our facility in Bogota (Colombia) selling its brass scrap to our facility in Rocky
Mount (USA). And the AS APAC facility in Taishan (China) reuses zinc alloy scrap in the die
casting process, whereas in Melaka (Malaysia) aluminum chips are remelted in the foundry
for reprocessing.
The AS AMER manufacturing facility in Indianapolis (USA) conducts on-site oil reclamation
generated from the machining processes. The site utilizes a system whereby oil is spun off ofthe scrap metal and collected for reprocessing. Once the water content in the oil has
evaporated, the oil is reconditioned and supplied back to the equipment for use. In thefinancial year 2020/21, the team in Indianapolis also converted the cooling process of a newtrimmer machine into a closed-loop system where water would continuously recirculate,thereby reducing the overall water usage.
In Singapore, one machining facility has installed a closed-loop system for the metal andaluminum chips produced. All chips produced are transported via underground conveyor to acentralized system where oil and/or coolant are separated and looped back to be used in the
production line. The chips are sent to the recyclers.
Downstream material cycles are also taken into consideration. In Germany, we launched atake-back program for sales and transport packaging. We report the annual packaging
volumes to a regulatory body as well as a third-party partner, who then takes back the
packaging from our customers and ensures it is properly recycled. We have estimated thatnearly 5,000 tons of packaging material is taken back and recycled through this process per
year.

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Products

Our performancedormakaba has made good progress in enhancing our products and their material
composition and origin, beyond the legal requirements. In addition to the new BPDs
mentioned above, we published six new HPDs for the room-partitioning systems ALTERRA
ALT100, ALTERRA ALT50, and DORMA Hüppe Variflex 88/100, as well as the door closer
HD8056 and HD8016, and the automatic sliding door operator ES PROLINE.
We have continued to improve on material compliance and also further embedded theMaterial Compliance Network which was initiated in financial year 2019/20. The network,
sponsored by the Chief Technology Officer, strives to mitigate the overall risk of Material
Compliance and ensure transparency, as well as a global strategic alignment of related
research and development initiatives.
With the setting up of the dormakaba LCA Tool and the data collection for the SCIP
database, we have investigated a wide range of Bill of Material and production data withrespect to hazardous or restricted material for the different product clusters. Whenassessing materials, we usually follow the IEC 63000 standard and obtain laboratory tests
where needed.
There are, however, still many challenges to tackle; for example, material compliancerequires the extensive collection of data. Our supply chains are global and complex, whichmakes it difficult to conduct any necessary follow-up or investigation. And we have to ensurethat changes in material composition do not impact product quality.
Therefore, in the financial year 2020/21, we have continued our collaboration with a thirdparty supply chain data management provider to support product compliance for all US
operations with California Prop 65, but also REACH, RoHS and Conflict Minerals
requirements. In addition, we are proud to have joined the Responsible Minerals Initiative, awell-respected multistakeholder organization evolving business practices to support
responsible mineral production and sourcing globally, including, but not limited to, conflictaffected and high-risk areas.
in metric tons 1)

2020/21

Non-renewable resources

62,985

Steel (incl. stainless steel)

27,621

Brass

10,334

Aluminium

8,686

Nickel silver

2,058

Zinc

3,145

Copper38

Gypsum Board

8,095

Glass

1,696

Plastics (parts and packaging material)

1,312

Renewable resources

12,376

Wood (incl. packaging material)

8,146

Paper and cardboard (incl. packaging material)

4,2301) Not included are materials and volumes which can only be accounted for in pieces or monetary terms.

As a member of the
Responsible Minerals
Initiative, we support
responsible mineralproduction and sourcing

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Raw material use (%)

Outlook
We continue to stay well-informed of the upcoming changes to relevant materials
regulations. Similarly, we will stay abreast of changes in the BPD and HPD standards andrevise our existing portfolio accordingly in the coming financial year.
A key focus will be the rollout of a new Environment Directive which regulates roles andresponsibilities at the local level across the organization regarding materials restrictions andhazardous materials management and minimization. A training module will be developed toincrease awareness on best practice and support implementation of the policy. In addition,
we will leverage the tools and resources from the Responsible Minerals Initiative to improvesourcing polices and processes.

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Simplified reporting process with the iPoint SCIP Database Connector
In order to encourage substitution of Substances of Very High Concern (SVHCs) with safer
alternatives, enable consumers to make better informed purchasing decisions, and provide
information on how to best dispose of affected products, the European Union introduced
regulations for greater product transparency in 2021. To be compliant and also support ourcustomers in responding to the new regulation, we have invested in digitizing dataprocesses.
As of early 2021, components with SVHCs in a concentration above a set threshold, which
are imported or sold in the European Union, must be reported in the so-called SCIP
Database, created by the European Chemical Agency. Working together with internal
stakeholders, a global taskforce was setup to develop data collection and reporting
processes for the European market through the iPoint SCIP Database Connector tool.
As a first step, we assessed our top-selling products in the European Union affected by the
SCIP database reporting requirement. We then identified – for each product type – the“worst case scenario” of the product’s Bill of Materials, meaning all possible accessories,
materials and combinations of manufacturing part numbers were included for further
assessment. The newly developed LCA Tool and the Environmental Product Declarations(EPDs) were the key resources for the analysis. Finally, we created the dossier data andsubmitted them to the central database. Currently, we have entered 25 dossiers of our topselling products and now we are continuing with further products.
During the assessment, we took a particular focus on metal alloys containing lead, which is aknown SVHC. Lead is normally alloyed with other metals to improve their mechanicalproperties, which allow machining and cutting and thus play a key role in our production
processes and in the quality of our finished products. It is challenging to subsitute its use.
But, together with a university partner and members of our internal Material Compliance
Network, we are continuously searching for solutions to reduce the lead content in our
products without compromising their quality. As members of the ARGE (European
Federation of Associations of Locks and Builders Hardware Manufacturers), we also take anactive part in industry-wide discussions on potential ways to reduce the lead content in locks
and keys.
“The regulation requires us to provide an enormous amount of data,
through a complex process. With the iPoint SCIP Database
Connector tool we found a solution that enables us to be more
efficient throughout the data collection and entry processes andultimately to comply with the reporting obligations. We are also
better able to respond to requests for data from customers, who inturn are obligated to submit information on the products andcomponents they purchase from us.”
Christina Siemsen, Specialist Material Compliance

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Customer Health & Safety
It is our aim to make access in our customers’ lives seamless, smart,and secure. End user health and safety is therefore a top priority andan inherent part of our business plans.
Why it matters
For us 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 and minimizing all possible risks of our products – including those arising fromharmful materials or potentially endangering functional features – we ensure the safety of
our customers and end users.

Key activities
It is our aim to make access in our customers’ lives seamless, smart, and secure. End-user
health and safety is therefore a top priority and an inherent part of our business plans.
Public buildings must meet high standards in terms of public health and safety, as well as forour built-in products and solutions. dormakaba meets these product and customer
requirements with product certifications for internationally recognized standards such as
from the European Standard (EN), American National Standards Institute (ANSI), or
Deutsches 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.
Our product management team is responsible for this work, in close consultation withproduct development, as required by the Group Directive Adaptive Innovation Methodology(AIM) and defined by Group Innovation Management. Our product quality assurance
process, which includes both internal and external resources, ensures that our products have
all necessary labels. No product can be installed in-field or released for production without
the appropriate certification in hand. This is a necessary step in the product development life
cycle, i.e., the product verification phase based on AIM. In our business units and at our
production sites, ISO 9001 processes are implemented locally and managed by local quality
assurance managers.
To ensure product- and solution-specific customer health and safety, business segments
develop adequate action plans:
1. Access Solutions segments
2. Key & Wall Solutions segment

Access Solutions segments
Our Access Solutions (AS) segments provide products such as escape routes, entrance
systems, and hotel access systems. we work to address fire safety, electromagnetic
interference, and hazardous substances, as well as the need to ensure emergency exits open
following a power failure. To ensure customer health and safety, our business addresses
these topics through the following activities:• Hazardous substances: products are designed to comply with the EU Directive on the
restriction of the use of certain hazardous substances in electrical and electronicequipment (RoHS directive 2011/65/EC and its amendment 2015/863/EC). Allcomponents and materials in electronic products sold in the EU market are
determined to be RoHS-compliant before any product manufacturing begins.
• Fire testing: an example of a fire test requires the door assembly with locks be placedin a door leaf and subjected to a temperature determined in the door leaf
specification for a period of three hours. Requirements are met if 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
during the whole test time.

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Sustainability Report 2020/21• Electrostatic discharges: for various Electronic Access & Data products, we focus on
product certification. For example, the dormakaba Wireless Gateway 90 42 is certified
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
to IEC 60950, which specifies requirements intended to reduce risks of fire, electric
shock, or injury to the service person, operator, or end user who may come in 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 equippedwith a redundant operator, an additional control unit for safety purposes and a selfmonitoring motion detector. The ES 200-2D door operator features emergency
opening following a power failure. 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.
• User testing: in some cases, new product launches require the product development
team to initiate an alpha (internal) and a beta (external) user testing. This is inaddition to product certification and performance testing. Beta testing is the process
by which the first initial products released from the production line are installed in alimited customer setting, and monitored closely by the technical support, productmanagement, and engineering teams. During the beta testing, any issues can be
escalated to the team, whereupon an investigation is carried out and issues resolved
prior to the full launch of the product in the field. This provides an extra layer ofverification and validation to most of our product launches and further deployments.
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.
5. Conclude with a proper follow-up to assess the customer’s satisfaction and integratelessons learned.
Regulatory compliance is at the top of the list of priorities for any product development
leader and requires immediate action plans. An incident response plan is also put in place toenable direct access to the required resources.

Key & Wall Solutions segment
Our Key & Wall Solutions segment provides product categories such as automotive solutions,keys, and space-dividing solutions. Both business units, Key Systems and Movable Walls,
have individual approaches to customer health and safety that are product-specific:• The business unit Key Systems approaches customer health and safety as an elementof its ISO 9001 certifications and ensures compliance with both mandatory (such as
the European CE Declaration of Conformity) and voluntary safety standards. Over 16
product certifications apply. Each Key Systems product features: proper
documentation, such as an owner’s manual; a Declaration of Compliance; contact
details for the manufacturer; quick guides and tutorials available on the web; andtraining on demand or during product installation to provide the customer with all theinformation relevant for proper product use and safety features. Regional distributors
are periodically trained on the same topics.
• The business unit Movable Walls has over ten active certifications, including thosefrom Underwriter’s Laboratory (UL) and the Canadian Standards Association (CSA).
Product certification includes fire testing, smoke testing, ball-throwing tests, andweight-bearing tests on suspension track systems, for example. The related legal
registers are regularly monitored and updated.

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Products

In addition to the Group-wide customer complaint process, the ISO 9001 quality system
within Key Systems includes a further grievance mechanism. Each production site
implements its ISO 9001 processes locally. Quality assurance managers have ownership of
the grievance mechanism and track any complaints from receipt to closure, including
feedback to the customer. The steps involved are: registering the complaint in the ticketingsystem, evaluation, problem analysis and corrective actions, verification, lessons learned, andclosure. The intended users of the grievance mechanism are the relevant stakeholders, suchas customers, technical assistance, procurement, quality control, logistics, manufacturing,product development, and sales teams. Effectiveness of the grievance mechanism is basedon 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.

Our performance
To ensure we are on the right track, we internally and externally verify customer health andsafety through various certification programs (including ISO 9001), testing, and stakeholder
feedback. For example, 53% of reporting sites have achieved ISO 9001 certification.
Examples of contributions to customer health and safety in the financial year 2020/21
included:• AS APAC continued its practice of regular customer training and education programsfor its channel partners to raise awareness on new solutions, e.g., space occupancy
management, health and safety check entrances, and the use of antimicrobial-coatedofferings.
• AS DACH continued to develop Health Product Declarations (HPDs) that help identify
hazardous materials in the products, and as a next step, the segment will work on
solutions to reduce or eliminate them. In order to fulfill the products’ health and safety
requirements, regular trainings are conducted in the Wuppertal (Germany) training
center for employees and customers. As an example, trainings on the correct and safe
handling of our revolving doors are offered to installation teams and customers.
• AS EMEA continued collaboration with a technical university in Austria to study
materials that could be substituted for lead in our metal alloys.
• The Key & Wall Solutions segment provided declarations of substances for the SCIP
database, and in addition the Movable Walls business unit provided Health ProductDeclarations (HPDs) to help consumers make better informed purchase decisions.
Furthermore, the Movable Walls business unit redesigned several steel components
with high lead content, and the Key Systems business unit started sales of lead-freekeys in the EMEA region. The Movable Walls business unit further improved
operational and assembly instructions, including short videos, to enable safe
installation and use of products. Modernfold has launched a “Pilot Build Program” toramp up production and get user feedback on newly launched products. Customer
feedback is used, among other things, to update safety notes and warnings ininstallation and user manuals prior to full production release.
In the financial year 2020/21, there have been no incidents of non-compliance withregulations or voluntary codes concerning the health and safety impacts of products andservices that have resulted in a fine, penalty, or written warning.

Outlook
We will continue our efforts to ensure customer health & safety in relation to the use of our
products. Planned projects and initiatives include:• Because of the Covid-19 pandemic, demand in the access and security market has
shifted to touchless solutions. The protection of the health of staff and visitors tobuildings and hospitals, and prevention of the spread of contagions, is more important
than ever. AS APAC plans, for example, to expand antimicrobial coating options andtouchless identification with facial recognition readers, seeking collaboration with local
occupancy management and contact-tracing providers.

53% of our sites haveachieved ISO 9001
certification85

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Sustainability Report 2020/21• We will continue scouting new lead- and nickel-free materials and less hazardous
materials in the market. Our goal is to integrate these materials into existingproduction infrastructure with minimal modifications to the machinery. To address
the issue, AS EMEA, for example, joined a cross-industry working group under theumbrella of ARGE (The European Federation of Associations of Locks & Builders
Hardware Manufacturers). The first action will be to measure the lead release rate inkeys with different materials.
• The business unit Movable Walls in the Key & Wall Solutions segment is continuing toperform VOC (volatile organic compounds) emission tests on several products and is
expanding the VOC certifications to increase transparency on indoor air quality, as thisis an increasing customer concern.

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Outro
About this report
This is the dormakaba Holding AG (“dormakaba”) Sustainability Report 2020/21, whichhighlights our sustainability commitment, strategic approach, and progress and is geared toall stakeholders. This is the company’s sixth sustainability report. This report has been
prepared in accordance with the GRI Standards: Core option. The report covers the financial
year 2020/21, from 1 July 2020 to 30 June 2021. dormakaba reports on an annual cycle andpublished the previous report in September 2020. While external assurance of the
Sustainability Report 2020/21 was not performed, the compensation of the Board of
Directors and the Executive Committee, as well as the financial statements, were audited by
an external auditor. Due to improvements in data quality and validation processes, arestatement of the previously reported carbon footprint data from the financial year
2019/20 is necessary. The restated figure is 74,770 tCO 2 e for combined Scope 1 and 2
emissions (market-based approach), as opposed to the previously reported figure of 72,992
tCO 2 e. Scope 1 increased to 31,162 tCO 2 e due to improvements in data collection based on
fleet management software, and Scope 2 (market-based) decreased to 43,608 due tovalidated certificates of renewable electricity purchase.

Significant changes to the organization and its supply chain
Effective 1 April, Sabrina Soussan assumed executive responsibility as CEO of thedormakaba Group. She joined dormakaba from Siemens Mobility, a leading supplier oftransport solutions, where she had been CO-CEO since 2017. Previously, she held several
leadership positions in Siemens’ mobility, building technologies, and automotive businesses
over the past 20 years. Her predecessor Riet Cadonau remained in his role as Chairman of
the Board, which is subject to annual re-election.
Further, dormakaba has agreed a new five-year CHF 525 million syndicated loan with aconsortium of banks coordinated by Zürcher Kantonalbank during the reporting year. In
addition to the standard increase and extension options as well as to transitional provisions
concerning the SARON interest rate, the terms for the first time include incentives for theachievement of ambitious sustainability performance objectives. The loan will be used tocreate further financial flexibility and to refinance the existing syndicated credit facility of
CHF 500 million, which expired on 30 March 2021.
The new syndicated loan has been provided by a banking consortium including BNP, Credit
Suisse, Deutsche Bank, HSBC, SEB, UBS, Unicredit (Sustainability Coordinator), and Zürcher
Kantonalbank.
Finally, dormakaba has divested its project installation business in Norway. The purchaser ofthe business, Låssenteret, is a well-established Norwegian security installation group. With
this transaction, Låssenteret and dormakaba will further strengthen their existing
commercial relationship.

Outro

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Reporting coverage and processes
The data presented covers 95% of dormakaba employees in 102 locations worldwide, as
represented by the blue dots in 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 all except
materials use, internal reporting deadlines are set at the 6 th , 10 th and 12 th month of thefinancial 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 iscollected in a web-based Health and Safety tool which was rolled out on 1 July 2020 acrossthe organization for all sites in the scope of this report. Data quality controls andconsolidation for all data are provided after financial-year end by an external consultant.

Sites covered

Outro

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Materiality process in detail
In the financial year 2017/18, dormakaba invested in a comprehensive materiality
reassessment to be aligned to the GRI Standards. This assessment is currently being
renewed 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 andthe 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 thevalue 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 26 topics taken up into the assessment were:• The material aspects as defined in the financial years 2015/16 and 2016/17,• Topics based on the sustainability context of the industries in our value chain, and• Ongoing sustainability initiatives in the company.
Overall, the assessment process has not only helped to identify hotspots along the value
chain, it has generated internal momentum and sharpened understanding of such impacts.
This 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 was focused on the relevance of thesustainability topics for our stakeholders, both internal and external. The stakeholder
dialogue which had taken place in the financial year 2015/16 was thorough and validated in arobust, multi-stage process. This included an online survey of around 100 employees
including the Executive Committee, the Senior Management and employees who regularly
deal with sustainability matters in their day-to-day work. Additionally, bilateral discussions
with external representatives such as investors, customers, suppliers, partners, and local
government were conducted. The results were therefore taken as a basis for this dimension
in the current materiality reassessment. For further details, refer to the 2016/17
Sustainability Report.

Outro

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Outro

Threshold-setting and validation
Reporting Frameworks
The results of the impact assessment and stakeholder dialogue were quantified in thedormakaba materiality matrix. The threshold for material topics was defined in a workshop
with the international dormakaba Sustainability Working Group, including representatives
from a range of global and segmental functions within the Supply Chain, Procurement,
Human Resources, Compliance, Operations, Quality Control, Material Compliance andCommunications departments. After intensive discussion on a third and final dimension –i.e., importance of the individual topics to the company strategy and values, as well as
possible risks and opportunities – the materiality threshold was agreed.
All topics where dormakaba was shown to have a medium to high impact on sustainable
development were taken up as material. These were topics where dormakaba either makes
a positive contribution to sustainable development – for example through job creation ortraining – or topics whereby our own operations or those of business partners and suppliers
could have a negative impact, for example, energy consumption and greenhouse gas
emissions resulting from the manufacturing process. Areas of highest interest to
stakeholders were also considered. Most topics with a medium to high relevance to ourstakeholders were defined as material.
In a final step, the proposed material topics were discussed with the Executive Committee,
which then approved them. In addition, the Executive Committee defined the topics ofCustomer Health and Safety and Customer Privacy as material, highlighting our company
value “Customer First”.

Changes in material topics
Many topics which had been previously defined as material were reconfirmed through thereassessment process, which indicated that the company was on track in its sustainability
management. In addition, six topics have been newly added as material, as seen in the below
table. Some topics which had been previously defined as material were shown to be of lessrelevance to stakeholders or of less potential impact on sustainable development for thecompany. While these topics are less material in the sustainability strategy, ourcommitment to the principles related to forced labor and non-discrimination continues as amember of the UN Global Compact.
New material topics

Previously defined as material

Materials

Socioeconomic ComplianceFreedom of Association and Collective
Bargaining

Forced Labor

Customer Privacy

Diversity and Equal Opportunity

Customer Health and Safety

Economic Performance

Supplier Environmental Assessment

Product and Service Labelling

Supplier Social Assessment

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.

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dormakaba Materiality Matrix 2017–2021
The dormakaba Materiality Matrix below highlights the 17 material topics we plan tomonitor and report on through the year 2021, while tracking any emerging global issues orrisk for future consideration. An interactive version is available in the web-version of thisreport. For each topic, the topic boundaries are defined as per impacts along the dormakaba
value chain as seen in the subsequent charts. We prioritize these issues according to thedegree of potential impact.

Outro

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Anti-competitive Behavior
Definition: Prevention of any form of anti-competitive behavior, extortion, collusion, conflictsof interest, price fixing. Anti-trust and monopoly practices, whistleblowing procedures.
Potential Impact per Value Chain Step

Anti-corruption
Definition: Prevention of any form of corruption and bribery in the supply chain, logistics andoperations. Policy regarding payments to authorities and whistleblowing procedures.
Potential Impact per Value Chain Step

Outro

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

Customer privacy
Definition: Safeguarding of customer's rights of data protection and privacy; e.g. obtaining
data by lawful and fair means, protection of personal data of customers by adequate
information security safeguards, responsible use of customer data in sales, proliferation of
new technologies and security risks / liabilities, cyber security.
Potential Impact per Value Chain Step

Outro

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Effluents and Waste
Definition: Pollution in the supply chain, logistics and operations; e.g. emissions of toxic orhazardous substances from manufacturing to soil or water, responsible use, storage anddisposal of potential pollutants, preventing chemical spills, wastewater treatment; waste
generation, recycling of generated waste.
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 , NO x , SO x , volatile organic compounds (VOCs), fine dust emissions,ozone-depleting substances, reduction of the risks of related human health impacts.
Potential Impact per Value Chain Step

Outro

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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

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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

Freedom of Association and Collective Bargaining
Definition: Risk and non-compliance with the freedom of association and collective
bargaining in the supply chain, logistics and operations.
Potential Impact per Value Chain Step

Outro

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Human rights assessment
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 e.g. freedom of religion, rightto life, protection from discrimination, freedom from slavery and forced labor.
Potential Impact per Value Chain Step

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

Outro

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Occupational health and 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
areas.
Potential Impact per Value Chain Step

Supplier environmental assessment
Definition: Reduction of negative environmental impacts in the supply chain and of business
partners, i.e. supplier screening, due diligence processes, prevention, mitigation andremediation of negative impacts. Sustainable sourcing of raw materials, e.g. impacts ofextraction (including conflict minerals), procurement from politically unstable regions.
Potential Impact per Value Chain Step

Outro

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Supplier social assessment
Definition: Requirement of social standards for suppliers and business partners, i.e. code of
conduct, certifications, audits in the supply chain. Sustainable sourcing of raw materials, e.g.
impacts of extraction (including conflict minerals), procurement from politically unstableregions.
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, facilitation ofcontinued employability.
Potential Impact per Value Chain Step

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Water
Definition: Water consumption in the supply chain, logistics and operations and impact onwater availability and pollution; e.g. water withdrawal and affected sources; measures toensure availability and sustainable management of water and sanitation; adaptation towater scarcity, water saving measures.
Potential Impact per Value Chain Step

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

Organizational profile
102 – 1 Name of theorganization

About this report

102 – 2 Activities, brands,
products, and services

About dormakaba

102 – 3 Location of
headquarters

About this report

102 – 4 Location ofoperations

Sites covered

102 – 5 Ownership and legal Corporate Governanceform
102 – 6 Markets served

About dormakaba

102 – 7 Scale of theorganization

About dormakaba

102 – 8 Information on
employees and otherworkers

About dormakaba

102 – 9 Supply chain

Supplier Social and Environmental Assessment

Key Figures

102 – 10 Significant changes About this reportto the organization and its
supply chain
102 – 11 Precautionary
Principle or approach

Strategy and Approach

102 – 12 External initiatives

Strategy and Approach

102 – 13 Membership ofassociations

dormakaba is a member of various industry associations andorganizations. The focus thereby lies on organizations concerned withdoor hardware, the security industry, building, locks and fittings, aswell as metal and glass hardware, with memberships varying acrosscountries and markets. These memberships include but are notlimited 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,
United States Green Building Council, Door and Hardware Federation(UK), Singapore Manufacturing Federation, German Sustainable
Building Council, Construction Specifiers Institute (USA), Glassassociation 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 fromsenior decision-maker

Letter from the CEO

Ethics and integrity
102 – 16 Values, principles,standards, and norms of
behavior

Our Code of Conduct outlines our values, principles, standards andnorms of behavior.

Governance
102 – 18 Governancestructure

Board of Directors
Strategy and Approach

Stakeholder engagement
102 – 40 List of stakeholder Strategy and ApproachgroupsGRI Content Index101dormakaba

Sustainability Report 2020/21

102 – 41 Collective
bargaining agreements

Freedom of Association and Collective Bargaining

102 – 42 Identifying andselecting stakeholders

Strategy and Approach

102 – 43 Approach to
stakeholder engagement

Strategy and Approach

102 – 44 Key topics andconcerns raised

Strategy and Approach

Reporting practice
102 – 45 Entities included in About this report
the consolidated financial
statements
102 – 46 Defining reportcontent and topic
Boundaries

Strategy and Approach

102 – 47 List of material
topicsStrategy and Approach

102 – 48 Restatements of
information

About this report

102 – 49 Changes inreportingNone

102 – 50 Reporting period

About this report

102 – 51 Date of mostrecent report

About this report

102 – 52 Reporting cycle

About this report

102 – 53 Contact point forquestions regarding thereportAbout this report

About this report

About this report

102 – 54 Claims of reporting About this reportin accordance with the GRI
Standards
102 – 55 GRI content index

GRI Content Index

102 – 56 External assurance About this report

GRI 200 Economic
GRI Standard

Disclosure

Anti-corruption

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Fair competition and anticorruption
103 – 2 The management
approach and its components

Fair competition and anticorruption

103 – 3 Evaluation of the
management approach

Fair competition and anticorruption

GRI 205: Anti-corruption 2016
205 – 3 Confirmed incidents ofcorruption and actions taken

Fair competition and anticorruption

Anti-competitive Behavior GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Fair competition and anticorruption
103 – 2 The management
approach and its components

Fair competition and anticorruption

103 – 3 Evaluation of the
management approach

Fair competition and anticorruption

GRI 206: Anti-competitive Behavior 2016
206 – 1 Legal actions for anticompetitive behavior, anti-trust,and monopoly practices

Fair competition and anticorruption

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GRI 300 Environment
GRI Standard

Disclosure

Materials

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Materials
103 – 2 The management
approach and its components

Materials

103 – 3 Evaluation of the
management approach

Materials

GRI 301: Materials 2016
301 – 1 Materials used by weight or Materials
volumeEnergyGRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Environmental Management
103 – 2 The management
approach and its components

Environmental Management

103 – 3 Evaluation of the
management approach

Environmental Management

GRI 302: Energy 2016
302 – 1 Energy consumption within Environmental Management
the organization
Water

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Environmental Management
103 – 2 The management
approach and its components

Environmental Management

103 – 3 Evaluation of the
management approach

Environmental Management

GRI 303: Water 2016
303 – 1 Water withdrawal bysourceEmissions

Environmental Management

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Environmental Management
103 – 2 The management
approach and its components

Environmental Management

103 – 3 Evaluation of the
management approach

Environmental Management

GRI 305: Emissions 2016

Effluents and Waste

305 – 1 Direct (Scope 1) GHG
emissions

Environmental Management

305 – 2 Energy indirect (Scope 2)
GHG emissions

Environmental Management

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Environmental Management
103 – 2 The management
approach and its components

Environmental Management

103 – 3 Evaluation of the
management approach

Environmental Management

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

Environmental Management

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Environmental Compliance GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Environmental Management
103 – 2 The management
approach and its components

Environmental Management

103 – 3 Evaluation of the
management approach

Environmental Management

GRI 307: Environmental Compliance 2016
307 – 1 Non-compliance withenvironmental laws andregulations
Supplier Environmental
Assessment

Environmental Management

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Supplier Sustainability
Assessment
103 – 2 The management
approach and its components

Supplier Sustainability
Assessment

103 – 3 Evaluation of the
management approach

Supplier Sustainability
Assessment

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

Supplier Sustainability
Assessment

GRI 400 Social
GRI Standard

Disclosure

Employment

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Employment
103 – 2 The management
approach and its components

Employment

103 – 3 Evaluation of the
management approach

Employment

GRI 401: Employment 2016
401 – 1 New employee hires andemployee turnoverOccupational Health and
SafetyEmployment

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Occupational Health and Safety
103 – 2 The management
approach and its components

Occupational Health and Safety

103 – 3 Evaluation of the
management approach

Occupational Health and Safety

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

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Training and Education
103 – 2 The management
approach and its components

Training and Education

103 – 3 Evaluation of the
management approach

Training and Education

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

Training and Education

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Freedom of Association andCollective Bargaining
103 – 2 The management
approach and its components

Freedom of Association andCollective Bargaining

103 – 3 Evaluation of the
management approach

Freedom of Association andCollective Bargaining

GRI 407: Freedom of Association and Collective Bargaining 2016
407 – 1 Operations and suppliers in Freedom of Association andwhich the right to freedom ofCollective Bargaining
association and collective
bargaining may be at risk
Human Rights Assessment GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Human Rights Assessment
103 – 2 The management
approach and its components

Human Rights Assessment

103 – 3 Evaluation of the
management approach

Human Rights Assessment

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

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Supplier Sustainability
Assessment
103 – 2 The management
approach and its components

Supplier Sustainability
Assessment

103 – 3 Evaluation of the
management approach

Supplier Sustainability
Assessment

GRI 414: Supplier Social Assessment 2016
414 – 2 Negative social impacts in
Supplier Sustainability
the supply chain and actions taken Assessment
Customer Health and
SafetyGRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Customer Health and Safety
103 – 2 The management
approach and its components

Customer Health and Safety

103 – 3 Evaluation of the
management approach

Customer Health and Safety

GRI 416: Customer Health and Safety 2016
416 – 2 Incidents of noncompliance concerning the healthand safety impacts of products
and services
Customer Privacy

Customer Health and Safety

GRI 103: Management Approach 2016
103 – 1 Explanation of the material Materiality Matrix
topic and its Boundary
Customer Privacy
103 – 2 The management
approach and its components

Customer Privacy

103 – 3 Evaluation of the
management approach

Customer Privacy

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GRI 418: Customer Privacy 2016
418 – 1 Substantiated complaints
concerning breaches of customer
privacy and losses of customer
data

Customer Privacy

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

Imprint
Project support: Renata Jendrolovits, Specialist Corporate Sustainability
Project management: Stephanie Ossenbach, Senior Manager Corporate Sustainability
Editor: dormakaba Holding AG
www.dormakabagroup.com
Picture credits:© Daniel Koebe, Human Rights / Supplier Assessments / Occupational Health & Safety /Customer Privacy / Energy, Emissions, Effluents and Waste;© Karsten Rabas, Environmental Management;© Bine Bellmann, Customer Health & Safety;© LAB 821, Occupational Health & Safety;© Tomas Rodriguez, Employment / Training & Education;© Adobe Stock (Quka), Materials;© Chao Zhou, Freedom of Association & Collective Bargaining
Copyrights: © dormakaba Holding AG, 2021

GRI Content Index106