Sustainability Report

Sustainability«Sustainability is an integrated
part of our new strategy, and a key
to creating leading compression
solutions for a sustainable energy
future.»Fabrice Billard,CEO

Online-AR
report.burckhardtcompression.com/
sustainability-report

30 Annual Report 2022

Burckhardt Compression

Sustainability Report

Ambitious sustainability targets for our Mid-Range Plan 2023–2027
and a net-zero commitment for Scope 1 and Scope 2 emissions by 2035
We have reached another milestone by embedding sustainability into our business strategy with our new
Mid-Range Plan 2027. Sustainability is now deeply rooted in our new purpose and a key pillar for the businessstrategies of both divisions. To underline our commitment, we have defined eight key sustainability targets
for 2027, one for each material topic.

–50%

≥ 80%

2021: 2.1 kg CO2e/h

2020: 79%

> 75%

< 0.7

2021: 23%2021: 1.1

+100%

0

2021: 100 (Index)

2021: 040%

02021: 16%2021: 0

Greenhouse gas
emission intensity*

Share of renewableelectricity*

Revamp + upgrades
activities in Services

Order intake supporting
the energy transition

Engagement Scorein employee survey**

Lost Time Injury Rate
below 0.7 each year

Incidents related to
product safety

Incidents on corruption or
anti-competitive behavior* Excluding the Shenyang foundry, where we rely on renewable grid electricity or technological developments to achieve our ambitions.
**Based on current survey methodology.

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Sustainability Report

On a strategic path
to a sustai­nableorganization
Our holistic approach to sustainability considers our beneficial and adverse impacts
on the economy, society, and the environment, as well as the opportunities and risks
that arise for our company in return.

We have rooted sustai­­n­­ability deeply in ourcore business and ourorganization with our
new Mid-Range Plan.
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Three main strategic directions guide us on ourjourney.
Creating leading compression technology for asustainable energy future
The world has to meet a growing demand forenergy while mastering the trilemma of energy
security, environmental sustainability, and energy equity. Our compression technology plays a
key role in different areas of a sustainable energy
future and the transition towards it. Compressors
are needed to expand the production of solar
panels, support energy security through versatileenergy transportation options such as Liquefied
Natural Gas (LNG), or enable scalable use ofhydrogen as a future energy carrier.

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Supporting our customers on theirsustainability journey
Increasingly, our customers are embarking ona sustainability journey, just as we are. With our
products and services, we can support our customers on this path. When it comes to energy
efficiency or reduction of gas leakages, we canrealize significant savings together with our customers, since around 99% of the greenhouse gas
footprint of a compressor comes from the usephase. If we consider the approximately 70’000
existing industrial-sized reciprocating compressors in the world, our potential positive impact issubstantial.
Integrating sustainability in our organizationand the supply chain
As a global industrial technology company withclose to 3’000 employees (FTE), we have the capabilities and the commitment to contribute toa sustai­nable development. We have integrated
sustai­nability in our core strategy, our new MidRange Plan. We also recognize our responsibility
to exer­cise our due diligence obligations in the
supply chains and uphold our product responsibility. The largest sustainability potentials for ourcompany lies in our eight material topics as outlined in this Sustainability Report.

Sustainability Report

Systems Division

Compression
technology for asustainable future
Compressors are critical components inseveral areas of the energy transition
and therefore a decisive building blockfor its success.

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Sustainability Report

Our compressors are a key component ina wide range of applications related to
power generation, transport, and supply.
Applications on the journey towards a sustai­nableenergy future include hydrogen, biodiesel, ammonia, solar energy, Liquefied Natural Gas (LNG),
and others. In recent years, three applications inparticular have contributed to our fast growth.
Enabling the expansion of solar power
Burckhardt Compression’s technology is used in
two steps of solar cell production. First, a solar
panel usually contains a thin, transparent plastic film made from ethylene-vinyl acetate (EVA)
encapsulating the solar cell. This layer needs tohave good radiation transmission properties anddemonstrate low sunlight degradation. EVA is
produced with a chemical reaction at more than
3’000 bar, requiring some of the largest compressors available in the world, and for which
Burckhardt Compression is a leader. The second
step requiring our compressors is the productionof polysilicon, which is the core of the solar cell.
Empowering hydrogen as an energy carrier
Our equipment has been compressing hydrogenfor decades, but the importance of this molecule
as a key building block of a sustainable energy
future gives it entirely new dimensions. There areseveral critical components to make hydrogen a
viable and economical option such as the electrolyser, the compressor, its motor, and the dispenser in fuel stations. We have stand-out technology for scaling hydrogen compression, which
will be an important step toward an economic useof this gas.
Making LNG accessible as a transitional energy
Liquefied Natural Gas (LNG) is an important component of the global energy supply as a shortand medium-term bridge energy for replacing
coal or as a fuel for marine applications, replacing
carbon-intensive heavy fuel oil until zero-emissions solutions are available. Our compression
technology is used, for example, in re-liquefaction
processes, boil-off-gas handling, or for providing
fuel gas to modern dual-fuel engines.

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Burckhardt Compression

Glass
EVA film
Solar cell
EVA film
Backsheet

H2

Sustainability Report

Services Division

Energy efficiency
for our customers
Our compressors are used mostly in industrial and energy supply processes. Savings
and improvement measures that we achievewith our customers have a multiplier effectdue to the long operating hours and service
lives.

We were able to successfully implement various
revamp and upgrade
services for our customers.

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Sustainability Report

Contributions to the sustainable
development goals (SDGs)

SDG 7
Enabling energy savings
through efficiency gains.

SDG 13
Reduction of CO2 emissions
resulting from energy savings.

SDG 12
Extension of service life forwear parts.

A path away from shutdowns and wastefulenergy consumption
In the past fiscal year, we enabled significant efficiency gains for one of our customers, a global chemicals company. Two vertical Process Gas
Compressors equipped with another brand’s rings
were facing challenges with extensive leakages,
reduced gas flow, temperature issues, and a very
short lifetime of wear parts. This led to frequent
compressor shutdowns and wasteful energy consumption.
Our thorough system integrity analysis provided the basis for our repair and overhaul measures. We upgraded the piston and packing rings
to Persisto® 850, a leading material that we developed for dry-running reciprocating compressors. Further, we repaired the piston rods, applied
an enhanced coating, and refurbished the packing and other components at our local Service
Center.

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Considerable energy and wear part savings
achieved
With the overhauled compressor solution, wewere able to facilitate several sustainability benefits for our customer. In addition to an improved
uptime of the compressor, internal leakages could
be eliminated, and a nominal gas flow restored.
The service life of the wear parts was exten­ded,thus reducing maintenance costs. Looking at theenergy balance, an approximate efficiency gain
between 500-1’000 MWh per year could be realized. This corresponds to the annual electricity
consumption of around 150 to 250 average Swisshouseholds.

Burckhardt Compression

Sustainability Report

Sustainability
Report 2022
Our sustainability roadmap is fully integrated in our Mid-Range Plan 2027. It follows
a strategic approach, is focused on eightmaterial topics, and has a firmly anchored
governance.

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Burckhardt Compression

Sustainability Report

Our Strategic Approach
We create leading compression solutions for a sustainable energy
future and aspire to incorporate economic, environmental, and so­cial aspects into our business activities and decisions. Burckhardt
Compression is an industrial technology company specializing in reciprocating compression solutions for all types of gases. With a company history stretching back over 179 years and products with a usefullife of more than half a century, we base our business decisions on
a long-term perspective. And we approach sustainability with thesame mindset: pragmatic, focused on the long-term, creating value
and impact driven.
Strategic focus on eight material topics
In our sustainability approach, we focus on eight material topics, which we identified by analyzing our impacts on the economy,
environment, and society. These eight material topics build ourframework and the core of our sustainability roadmap.

Burckhardt Compression is committed to supporting the Sustainable Development Goals (SDGs) as defined by the United Nations. These SDGs address the world’s most pressing sustainability
challenges and are to be achieved as part of Agenda 2030
for Sustainable Development. We have stated five sustainability
ambitions, each linked to a strategic SDG and directly related toour material topics:– Safeguarding human health (SDG 3: Good health andwell-being)– Promoting prosperous work (SDG 8: Decent work andeconomic growth)– Tackling climate change (SDG 13: Climate action)– Driving energy transition (SDG 7: Affordable and clean energy)– Valuing natural resources (SDG 12: Responsible consumption
and production)
We have also identified six additional SDGs to which we can contribute.

Strategic sustainability framework

Tackling
climate change

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Burckhardt Compressionserpo

39 Annual Report 2022

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Sustainability Roadmap

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Driving energy
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Promotingprosperous work

Valuing
natural resourcesSustainability Report

Our senior leaders play a key role in achieving our goals, which iswhy sustainability is now part of the remuneration in the form or
our long-term incentive plan. Our 2027 target to reduce our greenhouse gas emission intensity by 50%* (2021: 2.1 kg CO2e/h) is one ofthree key performance indicators for the long-term incentive of our top
management.
We developed a commitment to net-zero greenhouse gas
emissions by 2035 which goes beyond our Mid-Range Plan target
for 2027. We follow a 1.5°C climate aspiration in reference to theParis Climate Agreement for our Scope 1 and Scope 2 emissions.
In addition, we are committed to reducing our Scope 3 emissions.
Overarching due diligence on human rights and international
environmental standards
The focus on our material topics and sustainability ambitions includes an overarching due diligence approach. We acknowledge
the responsibility to respect internationally recognized human rights
and international environmental standards, which is also defined in

our Code of Conduct. We incorporate the precautionary principle
into our activities and decision-making, such as the considerationof environmental requirements in product design, the consideration of human rights in our supply chain, and the assurance of safe
product operation at our customers' sites.
Supply chain management plays a key role in this. Burckhardt
Compression taps into its suppliers’ experience to continuously improve its products, because an important part of the value creation is provided by them. We source raw materials for the foundryin Shenyang, China, raw materials and semi-finished products forthe manufacture of compressors in our factories, and components
and other accessories to complete and maintain the compressor
systems on-site. For this, we have an established global supply
chain, with core suppliers for production located in the wider regional area.
Through our Code of Conduct for business partners, we set thesame high standards for suppliers as we do within our company,
and we also include them in our environmental and quality policy.

Material topics
value chain impacts

1. Greenhouse gas emissions &climate change

Impacts on climate change, including greenhouse gas emissions along
the value chain, and mitigation of climate change risks.

2. Energy use & efficiency

Energy consumption, efficiency and sources for the production, provisionand operation of Burckhardt Compression’s products and services.

3. Longevity & cyclability

Fostering a long lifecycle and the circularity of materials and products
in Burckhardt Compression’s business activities, including maintenanceand repair services.

4. Environmental impacts ofapplication purpose

Environmental impacts of the use case of Burckhardt Compression’s
products and services, including the contribution to a sustainableenergy transition.

5. Working conditions

Employment terms including working hours, compensation, andlabor-management relations as well as the satisfaction of employeeswith those terms.

6. Occupational
health & safety

Maintaining and promoting a safe and healthy working environment
for workers involved in the production and provision of Burckhardt
Compression’s products and services.

7. Product safety

Maintaining and promoting the safe and healthy operation of
Burckhardt Compression products and maintained products ofother brands.

8. Business conduct

Ensuring and promoting that Burckhardt Compression’s businessactivities are conducted in compliance with regulations, standards
and ethical principles.

EconomySociety

Environment

supplychain*Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

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own
use/endoperations of-lifeSustainability Report

We conduct checks on-site or when goods arrive to ensure observance of specifications and verify this by reviewing the required
audit reports. We adopted a policy on conflict minerals and initiated a risk-identification process for child labor and other humanrights risks. In the reporting period we also updated our supplierassessment process, including sustainability, which we will roll out
in fiscal year 2023.

Burckhardt Compression commits to
net-zero emissions in its operations by 2035
We follow a 1.5° C climate aspiration in reference to the Paris
Climate Agreement for our Scope 1 and 2 emissions. In addition,
we are committed to also reduce our Scope 3 emissions. Our roadmap to operational net-zero emissions is built on four key pillars:
Decoupling business growth from emission growth through avoidanceand savings programs

Our Material Topics

1. Greenhouse gas emissions and climate change

Conversion to renewable electricity (by 2027: 75% renewable electricity
without foundry)
Reduction of Scope 1 emissions until 2035 through savings and replacement
Counterbalance any remaining emissions through carbon removal

2035 business as
usual assumption

Topic lead: President Systems Division

Target: Reduce greenhouse gas emission intensity for Scope 1 and 2 by 50%.*(2021: 2.1 kg CO2e/h)

Tackling climate change is one of the most pressing global challenges. The potential consequences of climate change are grave,in some cases irreversible, and affect individuals, organizations, andcountries alike. The Paris Agreement of 2015 is a legally binding international treaty between states on climate change. It recognizes
the need to limit global warming to below 2°C above pre-industrial
levels, preferably as low as 1.5°C.
Burckhardt Compression recognizes its responsibility and thepotential to reduce its greenhouse gas emissions across the entire
value chain. Our activities and technology make an increasing contribution to combating climate change and to supporting Sustai­n­able Development Goal 13: Climate action.
The majority of the emissions associated with our business activities arises in the use phase of our compressors due to their long
lifetime of 30 to 50 years. Other emissions occur in our operating
facilities, where we have the most direct influence, and in logistics
and the materials used.

Our approach
Burckhardt Compression endeavors to reduce the company’s carbon footprint and optimize emissions during the use phase of thecompressors. We focus on three key areas:– Reduction of the company’s carbon footprint– Optimization of the impact of our inbound and outboundlogistics– Improvement of the carbon footprint of compressors
Reduction of greenhouse gas emissions during the use phase of ourcompressor systems is an integral part of our product and innovation management. With our services, we help our customers reduce
emissions from installed compressors.

*Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

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2021(Baseline)

2035

Net-zeroSustainability Report

Our climate policy is the basis for all our activities related to climate change and part of our wider environmental policy. Our environmental management system, certified in accordance with ISO
14001, is a key instrument in reducing our environmental footprint.
Each subsidiary takes responsibility for reducing its own greenhousegas emissions according to the global targets.
We have embedded our target of reducing our greenhouse gas
emission intensity by 50%* (2021: 2.1 kg CO2e/h) as part of top management’s long-term incentives.

Progress in fiscal year 2022
We focused on the analysis of our mid- and long-term reduction
potential for direct (Scope 1) and energy-related indirect (Scope 2).
This enabled us to set our ambitious 2027 target for the Mid-Range
Plan and develop a roadmap for net-zero emission. In addition, wewere able to successfully map the data collection for Scope 1 andScope 2 emissions onto a new software platform.
On an operational level, we continued with various projects
addressing our emissions. The measures implemented locally focused mainly on electricity consumption and renewable electricity.
Burckhardt Compression Spain, for example, installed solar panelson their roof which cover around 40% of their energy use. We arealso pursuing similar initiatives in other locations like Switzerland,
China, and South Korea.

Greenhouse gas emissions of various compressors over the entire life cyclein %Process Gas Compressor 2B1Y
life cycle 20 years

Materials: 0.0764%

Transport: 0.0251%

Production: 0.0306%

Use phase: 99.8678%

End-of-life: 0.0001%

Production: 0.3620%

Use phase: 98.7718%

End-of-life: 0.0010%

Transport: 0.0114%

Production: 0.0086%

Use phase: 99.9047%

End-of-life: 0.0002%

Transport: 0.0129%

Production: 0.0010%

Use phase: 99.9479%

End-of-life: 0.0001%

Diaphragm Compressor MD10
life cycle 20 years

Materials: 0.7802%

Transport: 0.0850%

Laby®-GI Compressor 5LP250V
life cycle 30 years

Materials: 0.0751%
Hyper Compressor K8
life cycle 30 years

Materials: 0.0381%

The vast majority of emissions over the entire life cycle of a compressors are caused in the use phase due to the high power range of our compressors, their long lifetimeand their uninterrupted operation.
* Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

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Sustainability Report

We started a screening and approximate calculation of our Scope
3 emissions. We expect to publish this data in fiscal year 2023. The
majority of our Scope 3 emissions is in the use phase of the compressor. The key factor is the electricity source used by our customers to power the electric motor which is driving the compressor.
Inbound and outbound logistics are less significant than the usephase, but we have a direct influence. We therefore analyzed our
logistics more closely to identify improvement potentials.
Greenhouse gas emissions also play a vital role in our continued product development and collaboration with our customers.
We see high potential for avoidance of gas leakage, particularly
where greenhouse gases are compressed. We therefore continued
our efforts in research and development projects for comprehensive
emissions management of existing compressors.
In addition, we have invested further in digitalization and are
one of the pioneers in our industry. Solutions such as UP! Solutions
Remote Support contribute to a reduction of greenhouse gas emissions through reduced travel by service technicians.

Greenhouse gas emissions

Our performance
The absolute greenhouse gas emissions for Scope 1 and Scope 2
amount to 20’070 metric tons of CO2 equivalents (CO2e). Scope 1
and Scope 2 emissions have increased due to a continuous strong
growth, especially in China where renewable energy options arelimited. The greenhouse gas emission intensity by working hours
rose from 3.3 to 3.4 (2.1 to 2.3 without foundry) but the greenhousegas emission intensity in tons of CO2e per million sales decreased
from 26.8 to 24.2. The results correspond with our expectation andplanning for the 2027 sustainability target to reduce the greenhousegas emission intensity by 50%* (2021: 2.1).
Business travel forms only a small part of Burckhardt Compression’s other indirect greenhouse gas emissions (Scope 3) but can bedirectly influenced. Compared with the previous year, the number ofbusiness trips has increased but remains below the pre-pandemic
level of 2019 (3’429 tCO2e). By strengthening our digital infrastructure, we intend to reduce travel frequency in the medium term.

Greenhouse gas emissions
intensity Scope 1 and 2

Outlook for fiscal year 2023
In the coming year, we are launching a global Mid-Range Plan initiative to reduce our greenhouse gas emissions as a key to reachingour 2027 sustainability target. We also expect to be able to implement further solar panel projects next fiscal year. We continue tosupport our customers in reducing their emissions and are working
to further develop special service offerings.

in tons of CO2e (per calendar year)

15’396
4’674

Scope 2
Scope 1

22

4’221
21

20

5’187

8’369

13’19820’070in kg of CO2e per working hour (per calendar year)

22

21

20

2.7

3.3

3.4

Greenhouse gas emissions
business travel
in tons of CO2e (per calendar year)

2’567
Airplane* Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

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Burckhardt Compression

22

21

20

19

1’902
26
56
584

Train
Bus
Car

Sustainability Report

Energy consumption

2. Energy use and efficiency

in MWh (per calendar year)*Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

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Burckhardt Compression

22

49’92821

in kWh/working hours (per calendar year)

22

9.4
21

10.1

Share of renewableelectricity
in % (per calendar year)

22

15

21

20 2

Our environmental policy and ISO 14001-certified environmental
management system form the basis of our activities related to energy consumption in our value chain. Each subsidiary takes responsibility for reducing its energy consumption and increasing the shareof renewable electricity according to our global target.
Our Winterthur site, for example, is in the process of implementing a multi-year project to save energy in production operations
and offices. As another example, the factory in Pune has won theGreenCo Star Performer Award (Gold Rating) several times. GreenCo is an initiative created by the Confederation of Indian Industry(CII). GreenCo’s rating system takes a holistic approach to measurement of the results of corporate environmental initiatives.
The energy consumption of our compressor systems forms an integral part of our product and innovation management. Through ourcomprehensive services, we improve the energy requirements of ourown and third-party compressor systems throughout their entire
life cycle.

Energy intensity

21

Our approach
Burckhardt Compression endeavors to reduce energy demand andpromote renewable energies. The focus is on:– Energy use, energy efficiency, and energy quality, including
renewable energy in our operations.
– Use and efficiency of energy in the operation of our products at
customers’ sites throughout the use phase.

20

The development of society depends on the conversion, use, storage, and transmission of power. Reliable and affordable access topower is a basic need. However, the extensive demand for energy
is also tied to significant environmental impacts.
Burckhardt Compression’s business activities have a significant
impact on energy consumption, especially in production, raw material supply and the electricity consumption of our compressors in
the use phase. Through energy-saving production processes, compressor design and services we can contribute to the Sustainable
Development Goal 7: Affordable and clean energy.
Our activities require energy in the manufacturing process, but
by far the largest impact of our activities is in the use phase of our
products.

9.1

Target: Increase the share of renewable electricity to 75%.* (2021: 23%)

20

Topic lead: Vice President Compressor Engineering &Manufacturing

45’61959’107

Sustainability Report

Progress in fiscal year 2022
In the reporting period, Burckhardt Compression continued its
measures to reduce energy consumption at different sites. Our main
production site in Winterthur, for example, was able to reduce theenergy consumption for electricity and heating by around 4% despite the significantly higher capacity utilization. Burckhardt Compression India achieved an energy reduction of 153 MWh in the factory through various efficiency projects.
We have planned for the expansion of renewable electricity
production at our facilities, following our new Mid-Range Plan target of 75%* renewable electricity by 2027. Our subsidiary in Spain
has already been able to install new solar panels on their roof, producing up to 40% of their electricity by solar energy. We also pursue
corresponding initiatives in other locations like in Burckhardt Compression Switzerland, where we have initiated a project to installsolar panels on the buildings.
We made significant progress in defining measures and a methodology to track and compare the energy consumption rates ofour compressor portfolio. This will allow us to better evaluate andbenchmark the engineered-to-order compressor projects and drive
measurable performance improvements in energy efficiency.
Our performance
The absolute energy consumption increased to 59’107 MWh as we
went through major business growth. Subsequently, the energy intensity also increased from 9.4 to 10.1, partly because we were grewstronger in output than in working hours. We were able to increase
the Group-wide proportion of renewable electricity from 15% to 21%.
The performance is in line with our expectations and planning forreaching our sustainability targets 2027.
With product improvements and services, we managed to reduce our customers’ energy consumption in the reporting period.
To date, we have evaluated few projects in terms of energy savings
because access to data is challenging. We have identified this as
an improvement area for our management approach.

Energy savings of 320 MWh per year achieved withminimal modifications
A customer of Burckhardt Compression India oper­
ated a compressor with reduced capacity due tolow customer demand. The bypass system resulted ina high power loss of about 50 kW. Burckhardt
Compression India offered a solution to reduce thevolume flow to the customer’s requirements with minimal modifications. With this solution, we achieved apower saving of 40 kW. On a standard yearly runtime
of a compressor, this amounts to 320 MWh a year
which is around a third of the entire electricity consumption of Burckhardt Compression India including
the factory.

Outlook for fiscal year 2023
In the fiscal year 2023, we will continue our roadmap to increase theshare of renewable electricity across the Group. Specific projects
are under evaluation or implementation in Switzerland, Korea, andChina. Local energy-saving measures at operational level will be an
ongoing activity. We also plan to undertake further efforts to better
quantify our energy savings with our customers and increase our
impacts with such services.

3. Longevity and cyclability

Topic lead: President Services Division

Target: Increase the revamp and upgrade sales of Services Division by 100%.
(2021: 100 – Index)

Second generation Multistage Clearance
Adjustment enables energy savings up to 30%
The second generation of our Pneumatic Multistage
Clearance Adjustment System developed by our
subsidiary Shenyang Yuanda Compressor builds on
the successes of the first generation. The system has
been installed in China successfully nine times infiscal year 2022 (22 times since the launch in 2019),
leading to an electricity saving of 34.5 MWh (basedon 8’000 operating hours per year). A single installation can save up to 30% of the compressors’ energy
consumption during part-load operation. Since theinitial launch of the first generation, a cumulativeelectricity saving of around 958 MWh was enabled.
This is equivalent to the annual electricity consumption of over 250 average Swiss households.
*Excluding the Shenyang foundry where we rely on renewable grid electricity
or technological developments to achieve our ambitions.

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A large number of natural resources are finite, and raw material
extraction is associated with significant environmental and social
consequences. It is thus essential to keep raw materials for longer inthe use phase and to close loops to use materials circularly.
Our compressor systems are built for a defined lifetime of morethan 25 years and the average lifetime is 30 to 50 years. Our oldest
known compressor still in service is 93 years old. Our compressors are
made of more than 95% iron and steel, which ensures a long service
life and makes them highly recyclable.
In the manufacture and servicing of compressors, we have asignificant scope to contribute to a circular economy and support
Sustainable Development Goal 12: Responsible consumption andproduction.
Significant impacts result from the raw materials used for ourcompressors, the replacement of components during the use phaseand the use of operating materials such as lubricant.

Sustainability Report

Our approach
Burckhardt Compression fosters long life cycles and the circularityof materials for own compressors and those from other manufacturers by focusing on:– Longevity of new products through technology, engineering,easy maintenance, and optimized wear parts– Longer life cycles of existing compressor systems throughretrofitting, overhauling, and longer maintenance intervals– Repairing of components and compressors– Use of recycled materials, in compliance with material
requirements and standards– Recyclability of our products
To foster longevity, we use our in-depth technical knowledge todevelop reliable, long-lasting, and high-performance compressor
solutions. Our innovations such as Persisto® materials and Redura®
sealing systems ensure a long-lasting operation. We offer a fullrange of reliable services and durable compressor components
developed in-house to achieve our long product lifetime of 30 to
50 years.
By reconditioning equipment, we support the short recycling
loop with a comprehensive range of revamp and upgrade services,
as well as our refurbish programs for entire compressor systems. We
also repair and refurbish compressor components such as valvesusing our global network of service centers.

Complete overhaul of a hyper compressor for the
next life cycle
Burckhardt Compression was commissioned to conduct a complete overhaul of a hyper compressor fromanother brand. The compressor was no longer fit for
purpose in its unreliable condition. Through the total
overhaul, including an upgrade of key components
and a repair of the foundation, the compressor could
be granted a second life, thereby avoiding the needto produce a new compressor. In the process, theclosed-loop concept was also applied in small details.
The old piston rods were used, for example, to makethe new stud bolts for the bearing covers.

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Proportion of reused or refurbished com­ponents in service work in 2021/2022 forselected key components.
in %

81%

2021: 100% = 26’422
Valve

76%

2022: 100%= 41’725

59%2021: 100% = 227
Crank gear94%

2022: 100% = 898

2021: 100% = 1’223

51%

Cylinder88%2022: 100% = 4’893

Hypercomponents

69%2021: 100% = 1’680
2022: 100% = 1’833

62%

100% = Total components recycled or newly manufactured
by Burckhardt Compression for service activities.

Progress in fiscal year 2022
We have anchored the topic of longevity and cyclability in our business development for new machines and services as part of the
new Mid-Range Plan. Our long-term approach in services business
represents a paradigm shift in compressor maintenance: moving
away from standardized replacement plans based on the operating cycle to predictive maintenance based on the actual conditionof the compressor.
We were able to successfully implement various revamp andupgrade services for our customers. Projects went from smallerparts upgrades to full-scale and highly complex overhauls, where
we transformed compressors for a second life. In one case, we addressed our customer’s need with a second-hand compressor from
our inventory. We maintain a stock of compressors which we boughtback at the end of their service life in good condition.
We are particularly proud of the successful retrofit of several
Laby®-GI compressors to dry-running systems without cylinder lubrication. Oil-free compression of the gas renders oil separationand filtration of the gas superfluous and saves up to 1’200 liters of
lubricant per year and per compressor.

Sustainability Report

Sales volume for revamp
and upgrade services
in index points, base year 2021 = 100

22

100
21

87

Outlook for fiscal year 2023
We will continue our condition-based maintenance initiative in thecurrent fiscal year 2023. This undertaking will continue until 2025
and, along with our digital offering, will be one of the main themesin the Services Division.
Another focus will be to enhance our service activities with anemphasis on revamping, upgrading, and reprocessing compressor
systems to extend their service life.

159

20

Our performance
Our target for 2027 is to double our revamp activities comparedto the base year 2021 (=100). In fiscal year 2022, we could increase
sales to 159 compared with the base year, with some exceptionallylarge projects included.
Repair instead of replacement is a key component in the circular economy. We contribute to it through our services; for example,
the share of refurbished components for valves is 76% in all service
interventions.

A circular compression solution for a Brazilian
recycling pioneer
Lwart Environmental Solutions offers a sophisticatedwaste management service based on the concept ofcircular economy. The company collects, allocates,
and transforms finite natural resources to bring themback to the cycle. They needed a quick and a cost-efficient compression solution to keep their processes
running. Burckhardt Compression was able to provide
already built but unused compressors which wereavailable in the ’second-hand’ inventory. The technically sound solution met the required operational conditions without the need to build a new compressor.

Operating hours in comparison
LABY® Compressor 3K160

Passenger car

Weight:Weight:Operating hours:

Operating hours:

9t

1.5 t

8’000
per year
47 Annual Report 2022

Burckhardt Compression

When our specialists
carry out the firstservice, an average
passenger car has
already been replaced a long time ago.

5’000 total** Assumption: 300’000 km with

60 km/hSustainability Report

4. Environmental impacts of application purpose

Topic lead: Vice President Sales Systems Division

Target: Order intake of 40% in applications supporting the energy transition.
(2021: 16%)

Our core competence is mastering gas compression technologies
for a wide range of gases and applications. Gas plays a crucial rolein the process industries and energy supply, with applications ranging from conventional energy supply to industrial gases to renewable energy systems. A significant part of the indirect environmental
impact of our business activities is linked to the application purpose.
We have the potential to contribute to three of our strategic
Sustainable Development Goals (7, 12 and 13). The main impacts ofthis topic are related to the use phase of our products and services.

Our Approach
Burckhardt Compression is committed to the long-term alignmentof its business activities with a sustainable economic system. We
identified four positive impact areas:– Climate change mitigation– Energy transition– Circular economy– Environmental pollution prevention
We have developed a sustainability screening approach to analyze our business activities from an environmental impact perspective. This classification system makes use of international standards
such as the EU taxonomy for sustainable activities or South Korea’s
K-Taxonomy, without claiming to fulfil all their technical requirements. The main purpose of our screening system is to serve as acompass for the development of our business activities towards asustainable energy future.

Largest compressor package for Burckhardt
Compression India to date
Burckhardt Compression India has successfully
delivered a 38-ton compressor package on a single
skid including motor, consoles, and air coolers. The
package is used for a hydrogen installation in Europe
and is yet another successful step in our booming
segment of hydrogen mobility and energy.

48 Annual Report 2022

Burckhardt Compression

24 Standard High Pressure (SHP) Compressors for
BiogasBurckhardt Compression India has been awarded
several contracts with 24 Standard High Pressure (SHP)
Compressors for compressed biogas. The compressedbiogas market in India is growing fast due to the subsidy announced by the Indian government. Burckhardt
Compression India is a market leader in this application in India.

We are expanding the range of application for our customers andsupporting the transition to a sustainable economy through ourcontinuous innovation in compressor systems, materials, components, and services. Our approach is mainly driven by our innovation, product management and sales processes. We invest in R&D
for key applications of the energy transition. The current focus lieson:– Solar energy value chain, where our compressors are key
equipment for the production of a thin ethylene-vinyl acetate(EVA) film on top of a solar panel and for the polysilicon
production of the core.
– Liquefied Natural Gas (LNG) as a short- and medium-term
bridge energy for replacing coal, ensuring energy security during the transition or as a fuel for marine applications, replacing
carbon-intensive heavy fuel oil until zero-emission solutions areavailable.
– Hydrogen as an important component of a sustainable energy
future, in which our compressors play a key role in meeting thespecific technical challenges of these new applications. The
technological advantages of reciprocating compressors for thisapplication are unrivaled efficiency and long service lives.

Progress in fiscal year 2022
We have continued to expand our activities that contribute toa sustainable economy. We were able to achieve strong growthin hydrogen mobility and energy and to help the industry solve
specific compressor-related technical challenges. This is not least
due to our increased R&D and the strengthening of our businessdevelopment resources for these markets.
The fiscal year 2022 marked yet another significant increase of
projects for the solar industry. We reached a new record order intake for EVA and polysilicon applications.
In addition to our focus areas of LNG, solar industry, and hydrogen, we were able to win further projects in the areas of green
ammonia and biodiesel.
The development of the new test facility at Burckhardt Compression in Winterthur, Switzerland is progressing as planned andis expected to go live in fiscal year 2023. The facility is part of ourpartnership with Shell Renewables and Energy Solutions for thedevelopment of heavy-duty hydrogen refueling stations.

Sustainability Report e had an exceptionally high order intake in fiscal year 2022 forW
projects supporting the energy transition. We expect a return to theprevious reference range over the next two years. However, this year’s
success shows that we are on track to achieve 40% of our order intake
supporting the energy transition in the long term.

Outlook for fiscal year 2023
In the coming fiscal year, we will continue our development of innovative non-lube, high-pressure and high-flow hydrogen compressor
systems to meet the specific technical challenges along the hydrogen value chain. We will also evaluate the extension of our screening approach to the Services Division.

Sustainability classificationof order intake

23

in %

Conventional or not yet classified

New energy

22

17

Transitional
21 8 8

Our Performance
We extended the application of our sustainability screening approach to the entire Systems Division, representing 72% of the totalorder intake:– We classified around 17% (2021: 8%) of the total order intake as
new energy applications. Examples are green hydrogen projects in hydrogen mobility and energy or projects for the solar
panel industry.
– Around 23% (2021: 8%) of the total order intake is classified as
being transitional with environmental advantages but not yet
fully sustainable. Examples are, biogas applications in refinery, dual-fuel LNG applications in gas transport & storage, andgrey hydrogen projects in hydrogen mobility and energy.
– Around 32% (2021: 35%) of total order intake is classified asconventional applications. Examples are conventional industrial
gas or petrochemical applications without a clear link to asustainability use case.
– 28% (2021: 49%) of the total order intake has not yet beenclassified.

Overhaul of four non-Burckhardt Compressors forgreen steel production
One of Europe’s most significant steelmaking companies needed quick help to revive four non-Burckhardt
compressors that had not been used in 10 years. The
company turned one of its plants into a sustainablesteelmaking plant. Burckhardt Compression successfully supported the customer on its sustainability journey and provided a customized solution responding
exactly to the customer’s needs.

5. Working conditions
Compressor for another green hydrogen production
plant in Switzerland
A major energy provider in Switzerland has started
construction for a green hydrogen production plant,
where a 2.5 MW Electrolyzer is fed with hydroelectric
power. The hydrogen production capacity of this plant
will reach up to 350 tons per year, which is equivalent
to 1.5 million liters of diesel fuel. The hydrogen fuel will
be delivered from the production site to the fuel stations directly.

49 Annual Report 2022

Burckhardt Compression

Topic lead: Chief Human Resources Officer

Target: Maintain an employee engagement score of ≥ 80% (2020: 79%)

Jobs with decent working conditions are a basic premise for thedevelopment of individuals and society. They drive prosperity andprovide a livelihood for people. Our employees are central to our
success, and we are proud of our global and diverse workforce inour global production sites and service centers.

Sustainability Report

With our engagement in providing good working conditions, we
contribute to the targets of Sustainable Development Goal 8: Decent work and economic growth. Our most direct impact concerns
the working conditions of our more than 2’900 employees (FTE).
Further impacts are along our supply chain, also with regard to human rights. We recognize our responsibility to exercise due diligencein collaboration with our business partners.

Employee turnover ratio

Our approach
Burckhardt Compression is committed to upholding fundamental
international labor standards and strives to provide conditions thatexceed the local industry average overall. To achieve this, we focus
on three areas:– Dialog and relations– Terms and compensation– Organizational culture

Involuntary

The impacts on employees of suppliers, contractors, and outsourced activities are managed mainly through our supply chain
due diligence approach.

Terms and compensation:
Burckhardt Compression offers attractive terms and conditions of
employment adapted to prevailing requirements on an ongoingbasis. We benchmark our salaries against external salary surveys
conducted by Willis Towers Watson and have an ongoing monitoring system in place to eliminate significant salary differences between equivalent positions. We have greatly expanded our flexibility in terms of staff working from home and have enhanced our
infrastructure to enable our employees to work comfortably from avariety of locations.

Dialog and relations:
We acknowledge and support freedom of association as set out in
our Code of Conduct. Open dialog with employees is a priority for
Burckhardt Compression and is fostered in various ways. In addition
to employee surveys and a continuous exchange with line managers, employees are informed online several times a year personally by members of the Executive Management about the state of
the business and other matters, whereby questions are answered.
Our online platform and mobile application “BC Connect” is an exchange platform accessible to all employees and allows them toreceive, comment on, and write messages. Other dialog tools areused at local level in the form of collective bargaining and employee representation. 63% of Burckhardt Compression’s employees
worldwide are covered by a collective agreement.

Among the most attractive employers in Switzerland
Burckhardt Compression ranks as one of the most
attractive Swiss employers in the mechanical andplant engineering sector 2023. This ranking is basedon an independent survey of employees, and was
carried out by data analyst Statista via an online
access panel, combined with input from the readersof Handelszeitung and Le Temps. More than 1’500
employers with 200 or more employees in Switzerland
were identified for the survey. Burckhardt Compression was placed an excellent 10th in its sector and agood 123rd rank over all sectors which means a top
9% ranking.

50 Annual Report 2022

Burckhardt Compression

in % of yearly average of full-time equivalent

Other

2.1
1.1

2020: 9.5
2021: 10.1

2022: 10.7

Voluntary

7.5

Organizational culture:
We believe that our well-established corporate culture forms thefoundation of our competitiveness. A comprehensive program
called “Values and Behaviors” ensures that employees in all Group
locations and companies share and actively uphold the same
corporate values and principles. The internal Code of Conduct
is designed to set fundamental standards and principles for how
employees should interact and behave with partners, stakeholders,
and the environment. A global Speak Up channel operated by athird party is available to report violations of our standards, values,
and behavioral guidelines.
Progress in fiscal year 2022
In the previous reporting period, we conducted our biennial worldwide employee survey with a high voluntary participation rate of
90%, which reflects the remarkable level of engagement of our staff.
In this reporting period, we systematically analyzed the results todrive measures designed to improve the engagement of our employees even more.
These measures consider the specific local needs of the employees in the individual subsidiaries. For example, numerous measures were implemented at our production site in Shenyang basedon the survey results. These include 21 new tea rooms, a football andbasketball court, a new laundry room, sports training, and annual
health checks.

Sustainability Report

We also launched a global award program for the recognition of
exceptional team performance. This program rewards teams thathave particularly excelled and contributed to the success of thecompany through their performance.

Our performance
The employee turnover rate increased slightly to 10.7% in the reporting period. This figure includes all departures, including fixed-term
employment contracts that came to an end. Of this, 7.5 percentage points are accounted for by voluntary departures. High levelsof employee loyalty and identification with the company are also
confirmed by the fact that the typical employee has been with thecompany for 8 years.
We conduct our employee survey every two years. Therefore,
there are no updated results this year compared to the last report.
The average score for the statement “All in all, I am satisfied withmy current work situation” is 77 out of a possible 100 points. For thestatement “I would recommend Burckhardt Compression as a goodplace to work”, our rating is at 84 points.
Burckhardt Compression conducts an annual appraisal andperformance review with its employee which includes personal development goals and suggestions for continuous improvement. 86%of employees completed the performance appraisal cycle in thereporting period.
Outlook for fiscal year 2023
In the coming fiscal year, we will refresh our employee survey. The
findings will be our benchmark to drive measures locally in order toaddress the specific needs of our employees in the different regions.

Rating from employee survey
January 2020 and January 2022

Average points scored for the statement:“All in all, I am satisfied with my current work situation”
71

20

77

22
0
Strongly disagree

100
Strongly agree

Average points scored for the statement:“I would recommend Burckhardt Compression to others
as a good place to work”
77

20

84

22
0
Strongly disagree

100
Strongly agree

Average points scored for the statement:“The top management provides information to employees
in a way they can understand”
72

20

80

22

Equal pay for equal work
Burckhardt Compression conducted a 2020 wageequality analysis between men and women for its
main production site and headquarters in Winterthur.
The Swiss legal requirements demand a maximum
discrepancy between men and women of –5%.
Burckhardt Compression is significantly below theserequirements with –1.8%. The results were verified byan independent auditing organization. Equal pay for
equal work is an important principle for us and wecontinue working to ensure this.

0Strongly disagree

100
Strongly agree

Average points scored for the statement:“My work generally provides me with sufficient opportunities to balance my work life and my private life”
67

20

74

22
0
Strongly disagree

100
Strongly agree

Average points scored for the statement:“In our company employees are treated with respect,no matter what job they perform”
76

20

83

22
0
Strongly disagree

51

Annual Report 2022

Burckhardt Compression

100
Strongly agree

Sustainability Report

6. Occupational health and safety

Rating from employee survey
January 2020 and January 2022

Points scored for the statement:“My workplace is designed to prevent any harm to my health”
Topic lead: Vice President Quality & Infrastructure

Target: Keep the Lost Time Injury Rate (LTIR) below 0.7 every year (2021: 1.1)

71

20

79

22

The protection of physical integrity and the promotion of mental
well-being are top priorities for us. By providing a safe working environment and promoting health, we can help achieve Sustainable
Development Goal 3: Good health and well-being, and also Sustainable Development Goal 8: Decent work and economic growth.
Our influence in this area extends to our own employees, to external
employees in our workplaces, and to working conditions in supply
chain companies.

Our approach
We are committed to the prevention of accidents and work-related illnesses and to the promotion of the mental well-being of employees and workers whose work or workplace is under the control
of Burckhardt Compression. We focus our approach on two components:– Occupational health and safety system and prevention culture– Mental health and well-being
The impact on employee health and safety in our supply chain iscontrolled through the responsible procurement approach.
Our occupational safety policy and management system certified in line with ISO 45001 form the basis that governs all activities
relating to health and safety in the workplace. Numerous measures ranging from detailed risk assessments, safety walks accompanied by management to workplace safety training, and mandatory wearing of protective footwear, protective eyewear, and otherwork-relevant protective equipment demonstrate their effectiveness through steadily falling risk exposure. Creation of a culture of
prevention through raising awareness and involving employee representatives in the safety committee at each site is an importantpart of our approach.
We have several local programs to support the mental healthand well-being of our employees. These include developing knowledge on topics such as stress management, sleep, and nutrition as
well as promoting and encouraging sports activities.

52 Annual Report 2021

Burckhardt Compression

0
Strongly disagree

100
Strongly agree

Progress in fiscal year 2022
We were able to successfully conduct our external audits at Grouplevel in accordance with the ISO 45001 standard. We systematically incorporated the findings of the local certification bodies. We
launched a safety awareness campaign in all manufacturing sites
including illustrative flyers. We have also evaluated a dedicatedsoftware to improve the management of precarious situations andnear misses, which will be rolled out in fiscal year 2023.
Further, we implemented a stringent safety management system for work done on customer sites under the overall supervisionof Burckhardt Compression. We have incorporated the findings andfeedback from the health and safety section of the bi-annual employee survey.

Sustainability Report

1.1

Per 200’000 hours worked (per calendar year)

21

22

0.6

0.7

Outlook for fiscal year 2023
One focus will be to strengthen our safety culture, which we intend to achieve by enhancing the awareness campaign launchedin 2022 and providing further information at local level. The expansion of our global health and safety organization will support thisundertaking.
A second focus will be on internal coordination and integration
within the Group. In fiscal year 2023, we will focus on the locations
Shenyang and Shanghai in China, the US, and the Netherlands. The
aim is to align local approaches and achieve continuous improvement through shared learning experiences.

Lost Time Injury Rate (LTIR)

20

Our performance
The Lost Time Injury Rate (LTIR) has decreased from 1.1 to 0.6. This
marks a clear improvement compared to last year and is within ourtarget range for our sustainability targets 2027. Although the trend
is encouraging, occupational health and safety remains a major
challenge, particularly due to the increased workload in the factories and the associated new hires. During this reporting period, werecorded no fatal accidents and no case of work-related ill-health.

Severity Rate (SR)Lost days/recordable incidents (per calendar year)

22

25.0
21

24.0

24.6

20

Program to raise health and safety awarenessIn fiscal year 2022, we launched a broad awareness-raising program on the topic of occupationalsafety in our major production and assembly sites.
Using various media, including leaflets, videos,
and on-site installations, we highlighted the mostimportant sources of danger. In this fiscal year, we
conducted a review of the campaign and received
very positive feedback from our employees.

Lost Time Workday Rate
(LTWR)

27.8

Per 200’000 hours worked (per calendar year)

53 Annual Report 2022

22

21

20

16.4

15.6

Burckhardt Compression

Sustainability Report

7. Product safety

Topic lead: Vice President Contracting Systems Division

Target 2027: Maintain zero incidents every year related to product safety (2021: 0)

Compressors are critical equipment in various applications in theprocess industry and energy provision. System safety and reliability are the most important areas of expertise in our business dueto the high pressures, continuous operation, integration in complex industrial processes, and the individual hazard potentials of
the compressed gases. By ensuring product safety, we contribute to
the Sustainable Development Goal 3: Good health and well-being.
The main impacts are in the commissioning and operational phaseand extend over the compressors’ decades of life.

Successful launch of new engineering platform
In a period characterized by new product launches, organizational developments, business growth,and regionalization it is of the utmost importance tomaintain the Burckhardt Compressions engineering
standard. We launched a new engineering platform, providing pre-engineered modules, ranging
from pre-configured elements up to whole projects
designs. These pre-configurations and the platform
itself define a technical framework that supports
compliance with product safety requirements. New
developments for hydrogen applications are
already being integrated into this platform, which
offers a uniform, globally valid standard.

54 Annual Report 2022

Burckhardt Compression

Our approach
Burckhardt Compression assures safe operation of compressor systems in every phase of their life cycle. Our approach encompasses
five main areas of risk mitigation:– International norms and standards
Where available, we use and follow international standards
for the development, production, commissioning, and maintenance of compressor systems. This includes the evaluationof safety risks and certification in accordance with mandatory
laws and standards.
– Simulation, calculation and testing
Our comprehensive knowledge of calculation and simulation
allows us to optimize the dimensioning of compressor systems.
We also use specific testing and inspection procedures to ensure safety and functionality.
– Outstanding processes
Defined working principles, processes and our ISO 9001-certified quality management system ensure our processes meetthe strict requirements.
– Control systems and maintenanceOur compressor systems are fitted with a minimum protection
system that shuts down the system in the event of a critical
disruption. Our PROGNOST®-SILver system for monitoring anddiagnosing the condition of reciprocating compressors andour UP! Solutions for long uptime and maximum reliability arefurther key tools for increasing reliability and safety.
– Documentation and training
To ensure the smooth and safe operation of compressor systems, we produce a specific set of operating documents foreach system and also offer a wide range of training modules
available either online or at our training centers.
Progress in fiscal year 2022
We have successfully implemented an updated pre-order risk assessment and risk mitigation process, which is applied for all projects. Additionally, a new sales release matrix across all productlines serves as an advanced control and screening mechanism tocomply with the different country standards and customer guidelines.
In the reporting year, we invested significantly in competencedevelopment throughout the organization. We strengthened the“career path for technical expertise” in contracting, conducted onthe job training for new products lines, empowered our project engineering office, and set up a competence center for several engineering disciplines, allowing for global knowledge management.
In the area of control systems and instruments, we successfully implemented remote access devices for the first product lines inmarine high-pressure applications. Additionally, we launched anengineering base software that allows the utilization of pre-engineered modules to ensure a high product and safety level for execution during ramp-up and beyond. The new engineering platform

Sustainability Report

also presents the data source for a “digital twin”, enabling us tosimulate operating conditions to improve our design, product reliability and safety.

Our performance
As part of the approval process, 100% of the new product configurations have been through a risk and design assessment that includes product safety. No incidents related to the product safety of
our compressors were registered over the reporting period. Similarly,
no violations of regulations or voluntary codes took place in relation to product safety. In the reporting period, we registered one
near miss for a new product application. The problem was identified before the compressor was handed over to the customer andrectifications have been implemented by Burckhardt Compression
as part of the installation and commissioning process.
The number of new compressors fitted with a Burckhardt
Compression control system was further increased. We firmly believe that our control solutions offer significant added value in termsof reliability, safety, and lifecycle management of our compressors.
Outlook for fiscal year 2023
Our focus for the coming period will be on the further strengthening of our organizational capacities for project execution and for
new product launches. We also aim to utilize our new engineering
platform for the majority of new projects globally. The applied concepts for product release, risk assessments, as well as knowledge,
competence, and reliability management will be strengthened incollaboration with all internal and external stakeholders, including
clients and suppliers.

8. Business conduct

Topic lead: General Counsel

Target 2027: Maintain zero incidents every year related to corruption or
anti-competitive behavior (2021: 0)

Unethical business practices have the potential to damage theeconomy and society. They cause economic losses, promote social inequality, and undermine democratic processes. As a global
business with a far-reaching network of business partners, we arecommitted to conducting our business ethically, legally, and in anenvironmentally and socially responsible manner, which is a precondition for all other material sustainability topics.

Our approach
Burckhardt Compression undertakes to carry out its business activities in an ethical, legal, and environmentally and socially responsible manner. We expect every business partner with which we havea business relationship to conduct itself in a similar manner. We
assess every aspect of our business relationship and focus particularly on:– No corruption– Free competition– Export compliance
Our Code of Conduct defines the fundamental standards and principles for employee interaction and behavior with partners, stakeholders, and the environment. With the Code of Conduct for business partners, our suppliers, local agents, and partners commit to
conducting their business in an ethical, legal, and environmentallyand socially responsible manner. Both have been reviewed andapproved by the Board of Directors. All employees are required to
explicitly acknowledge their understanding of the Code of Conduct
on a regular basis. We train our employees in the fields of anti-corruption, compliance with free competition, and strict adherence toexport controls.
Burckhardt Compression carries out regular internal audits of
all its subsidiaries with a focus on financial, legal, and compliance
topics. Every subsidiary is audited in a three-year cycle.
Our Speak Up reporting system is a complaints channel operated by an independent third party. It allows employees, business
partners, and third parties that are or might be aware of suspected
misconduct to register it in the reporting system. The system is designed to allow protection of the identity of the reporting party andfor comments to be made anonymously. Burckhardt Compression

55 Annual Report 2022

Burckhardt Compression

Sustainability Report

is committed to investigating all cases according to our Speak Up
policy and to cooperating in the remediation of negative impacts
caused or contributed to.

5 Speak Up notifications, 2022

Progress in fiscal year 2022
We have updated and rolled out our “Values and Behaviors” which,
together with our Code of Conduct, form the fundamental behavioral guidelines at Burckhardt Compression. The updated version
clearly emphasizes the importance of “Responsibility” as one of thefour pillars of our “Values and Behaviors”. We also continued withthe roll-out of our Code of Conduct for our business partners, which
has been signed by suppliers and business partners representing
more than 80% of our purchasing volume.
To further raise awareness of compliance with the law in our
focus areas of no corruption, free competition, and export compliance, we provide targeted modules for employees concerned.
In the reporting period, a total of 372 employees who deal withthese areas in their work have successfully completed such training modules.
Speak Up, which is now running for the second year, is actively used and accepted among employees and business partners.
We comply diligently with the export control provisions and legal
sanctions applicable concerning Russia’s war with Ukraine. We decided not to accept any new contracts from or with Russia as of
mid-March 2022 and have maintained this policy ever since. We do
not have any subsidiaries in either Russia or Ukraine.

External

Our performance
A total of five suspected cases of misconduct in violation with theCode of Conduct or law were recorded on the Speak Up reporting
system: four by employees and one by external business part­ners.
All the cases were processed and closed within the reporting period. The average processing time to the conclusion of the investigation was 45 days.
We conducted nine internal audits of subsidiaries following our
audit cycle. All past identified risks have been mitigated and no
significant new risks regarding corruption and anti-competitive
behavior have been detected in this financial year.
No violations of competition law or instances of corruption connected to our business activities were identified during the reporting period, nor were any sanctions imposed for any other significant
non-compliance with environmental, social, or any other legislation.
In the reporting period, two employees of Burckhardt Compression AG were accused of having exploited insider knowledge
when they purchased shares for the company’s ordinary employee
stock ownership program on behalf of the company in May 2020.
Burckhardt Compression has cooperated fully with the law enforce-

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Burckhardt Compression

Notifications of potential misconduct

1

Internal

4

ment authorities in the investigation and is of the opinion that its
employees acted correctly but leaves the legal assessment of thematter to the court.
Our existing processes and preliminary clarifications of export
controls have proven their worth. 24 requests for clarification of export regulations were forwarded to the appropriate authorities during the reporting period. Of these, 22 cases were approved, andtwo were rejected by the authorities. One initially approved casehas been reversed at a later stage whereupon we withdrew fromthe project. No violations of export controls were identified.

Outlook for fiscal year 2023
We are planning to further strengthen our training activities for business conduct. We are increasing the reach of our Code of Conduct
for business partners, particularly in cooperation with our suppliers.

Sustainability Report

Firmly anchored sustainability governance
The very top of our organization is committed to sustainability. Responsibilities are clearly defined at every level and closely linked
to strategy. All sustainability-related activities are supervised by
the Board of Directors. The Strategy and Sustainability Committee
supports the CEO in developing corporate strategy and advises
the Board of Directors on all matters relating to strategy and sustainability.
All members of the Executive Management are also membersof the Executive Sustainability Team, which is responsible for the
strategic approach at Group level and compliance with our sustainability roadmap.
Every material topic is led by a member of senior management.
These managers form the Sustainability Steering Group together
with the Managing Directors of the production and assembly sites,
and the Regional Heads from the Services Division. The Sustain­
ability Steering Group is responsible for implementing the sustain­
ability roadmap and defining the topic-specific management
approach.
Implementation is supported by designated experts in the field
and key local individuals in the subsidiaries. They provide technicalexpertise and ensure on-site implementation.
A designated sustainability manager leads and moderates thesustainability-related activities at Group level and, as a technicalexpert, supports all functions and subsidiaries with implementationof the roadmap.

EcoVadis silver medal award
Burckhardt Compression was awarded the EcoVadis
silver medal for sustainability management with its
place in the top 25% in the sector. EcoVadis is oneof the largest platforms for assessment of supplier sustainability and is used by many Burckhardt
Compression customers. We also improved our scorein major ESG ratings like MSCI, Sustainalytics, ISS ESG
and S&P Global, which puts us in the top 10% – 50%of companies in our industry, depending on the rating
agency.

57 Annual Report 2022

Burckhardt Compression

Sustainability governanceat Burckhardt Compression
Board Strategy & Sustainablity Committee

Sustainability Management

Our Commitment

Executive Sustainability Team
Executive Management & Corporate Communication

Sustainability Steering Group
Topic leaders, Managing Directors & Regional Heads

Implementation Support
Topic contributors

Sustainability Report

A clear focus based on our materiality analysis
We use a materiality analysis to determine where our company’s
activities have the greatest impact on society, the environment,
and the economy. For this purpose, we conducted an impact analysis, where we assessed actual and potential positive and negative impacts of our activities along the value chain. The aspectsof scale, scope, and likelihood of impacts were considered as assessment categories with a precedence of scale and scope. In thisprocess, we gathered the views and concerns of our key stakeholders – investors, customers, employees, and suppliers – online and inperson. We updated the analysis in this reporting period to reflect
the updated requirements of the GRI Standards. Impact is now the
only determinant for materiality definition, and water has been included as an operational topic.

For each of the eight material topics, we have appointed a topic leader who, together with subject matter experts, develops ourapproach. Operational topics are important to us as well, but
we do not pursue them with the same strategic approach as thematerial topics. They are integrated into the operational businessactivities at the departmental level. Other topics may be of greater
relevance for a specific subsidiary, but not across the whole Group.
We address these topics on a situation-specific basis.

Material topics

Operational topics• Business conduct• Asset & process integrity• Biodiversity• Energy use & efficiency• Data security & privacy• Conflict & security• Environmental impacts ofapplication purpose• Diversity, inclusion & equal
opportunity• Corporate citizenship & community 		
impacts• Greenhouse gas emissions& climate change• Non-greenhouse gas air emissions• Economic contribution• Longevity & cyclability• Resource/material efficiency• Forced labor/child labor• Training & development• Intellectual property & accessto knowledge• Occupational health & safety• Product safety• Working conditions• Water & effluents• Waste & hazardous substances

Other topics• Land degradation• Land rights/indigenous rights• Noise, vibration, odor & radiation• Political accountability• Sales & project implementation 		practices• Social impacts of application purpose• Tax contribution & allocation

High

Significant
Aggregated impact on society, environment and economy

58 Annual Report 2022

Burckhardt Compression

Moderate

Sustainability Report

Dialog with our stakeholders
The appropriate involvement of our various stakeholders isextremely important to Burckhardt Compression. We have identified
four key stakeholders within our sustainability management:
customers, employees, investors, and suppliers. We are engaged
in more detailed discussions with them and actively involve them in
identifying material topics. In addition, we also maintain an open
dialog with other stakeholder groups, such as the local community,
media, the scientific community, associations, civil society, and thestate, as required.

Global workforce by gender
Employees (FTE)

465
2’508

416
2’316

2’158 379

2’973

female

22

21

male
20

Our employees are the key to our success
Together, we are successful and create sustainable value.
Burckhardt Compression is thus engaged in the advancement of
all employees and a diverse workforce. They are a vital factor in theimplementation of our sustainability ambitions.
We appreciate our employees’ expertise and promote knowledge sharing. Personal training and development are part of theannual appraisal and performance review process and are financially supported by the company. To ensure the ongoing development of technological expertise and personal and managerial skills
within the company, employees around the world participate in internal technical, product, and leadership training modules, which
are conducted across the Group throughout the year with a rangeof programs. In the fiscal year 2022, we provided on average 13.2 hof internal training per FTE and reached 84% of our employees with
our offering.
We promote and support new talent at all levels and are committed to the Swiss system of apprentice training. The company
currently has 49 apprentices in Switzerland and 22 in India in eightoccupations. Burckhardt Compression is a founding member of theinitiative launched under the auspices of the Swiss Federal Officefor Professional Education and Technology and the Swiss-Indian
Chamber of Commerce to establish an apprenticeship system inIndia based on the Swiss model; the company is also a corporate
sponsor of the AZW Training Center in Winterthur for vocational
career pathways.
Burckhardt Compression fundamentally believes that mixed
teams perform better. In the reporting period, women made up
33.3% of the Board of Directors and 20% of Executive Management.
Of the global workforce, 15.6% (2021: 15.2%) is female.

Global workforce by region, 2022
in %Americas

10
APAC

EMEA

2’973 FTE

43

47

Global workforce by age, 2022
in %<25 years

455+ years

14

25 – 34 years

45 – 54 years

21

2’973 FTE

26

35 – 44 years

35

59 Annual Report 2022

Burckhardt Compression

Sustainability Report

Customers
Burckhardt Compression seeks long-term customer relations. The
longest-standing customer relationship dates back to 1885, when
the company supplied BASF in Ludwigshafen with one of the firstcompressors ever built. Customer satisfaction is measured using
various tools. The results are evaluated as part of the management process with the divisional management teams, and actions
are initiated and implemented in accordance with the results. For
example, customer surveys were carried out in the reporting period with a focus on the Services Division. Customer priorities in thefield of sustainability were climate, energy, and occupational safety.
All three topics are key elements of our approach to sustainability.
Investors
Burckhardt Compression maintains an open and transparent dialog
with its investors and other interested parties. The aim of investor
relations is to accurately portray the company and its markets toenable a fair valuation of Burckhardt Compression stock. Leading
Swiss business newspaper “Finanz und Wirtschaft” gives Burckhardt
Compression’s investor relations and transparency an A– rating(A is the highest rating).
In recent years, the importance of ESG (Environment, Social,
Governance) rating agencies have also increased significantly forour investors. Important sustainability priorities for our investors include climate change, business conduct, and energy consumption.
All three are covered in the material topics.
Employees
Open dialog with employees is a central priority for Burckhardt
Compression and is carried out in different ways. The most important dialog channels are described in this report in the material
topic working conditions. The key priorities for employees are healthand safety at work, working conditions, and training and development. We actively deal with the first two within our material topics.
Training and development are a central pillar of our HR management.

60 Annual Report 2022

Burckhardt Compression

Suppliers
We work closely with suppliers in the development phase, with theaim of long-term partnerships. Exchanges and performance reviews
take place on a regular basis via on-site visits, virtual meetings,
audits, or inspections. The central sustainability priorities for suppliers are occupational health and safety, energy consumption, andbusiness conduct. All three topics are key elements of our approachto sustainability.
Communities and other stakeholders
We maintain an open relationship with the local community. We
established distinct communication channels for inquiries and communicated these contact points on our website. We also support
and promote local initiatives, for example in the areas of educationand sports. We practice transparency in our exchange with the media and authorities and strive for timely and open communication.

Sustainability Report

Extended key figures
Environmental metrics1
2022

2021

2020

EnergyEnergy use

59’10749’92845’619

Electricity

MWh30’65827’77918’915

Fuels and combustibles 2

18’58516’60818’569District heating

9’864

5’541

8’135

Share of renewable electricity
Energy intensity

%

21

15

2

kWh /working hour

10.1

9.4

9.1

Greenhouse gas emissions
Greenhouse gas emissions Scope 1 3

4’674

4’221

5’187

Combustibles

tCO2e

1’551

1’485

2’541

Fuels

2’914

2’508

2’421

Others

209

228

225

15’396

13’1988’369

Electricity

13’712

12’252

6’980

District heating

1’684

946

1’389

Greenhouse gas emissions Scope 2 4, 5

tCO2e

Greenhouse gas emission intensity
by working hours (Scope 1 and 2)

kgCO2e /working hour

3.4

3.3

2.7

Greenhouse gas emission intensity
by working hours without foundry (Scope 1 + 2)

kgCO2e /working hour

2.3

2.1

1.9

tCO2e / mCHF

24.2

26.8

20.6

tCO2e

2’567

1’361

1’211

Water 6m3

78’687

83’81091’218Waste 6

t

3’530

2’805

2’605

Greenhouse gas emission intensity
by sales volume (Scope 1 + 2)
Greenhouse gas emissions business travel(Scope 3)
Water and waste1 ith the exception of the figures for water consumption and waste, the data relate to all sites of the Burckhardt Compression Group. The data collection for environmenW
tal data is performed by calendar year. The denominators sales volume and working hours are collected per fiscal year. The greenhouse gas inventory was calculated
according to the WRI/WBCSD Greenhouse Gas Protocol Standard. ’Operational control’ was selected as the consolidation approach. Energy and greenhouse gas
emissions data for 2020 and 2019 have been recalculated due to methodological adjustments, conversion factors and working hours calculation. The values are higher
than in the previous report.
2
From fossil sources.
3
Scope 1 includes all directly caused emissions (e.g. combustion of fuels, loss of refrigerants).
4
Scope 2 includes emissions caused with purchased energy (electricity, district heating).
5
Reported according to the market-based approach under the Greenhouse Gas Protocol Scope 2 standard. The location-based approach results in emissionsof 15’801 tCO2e in 2022 (2021: 13’653 tCO2e, 2020: 8’574 tCO2e).
6
Data refer to the production and assembly sites of the Burckhardt Compression Group, including headquarter (Switzerland, India, China, South Korea, United States).

61

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Sustainability Report

Health and Safety1
2022

2021

2020

Health and Safety1
Lost Time Injury Rate (LTIR)2

0.6

1.1

0.7

Severity Rate (IR)3

24.6

25.0

24.0

Lost Time Workday Rate (LTWR)4

15.6

27.8

16.4

2022

2021

2020

2’538

1

The data collection for occupational health and safety data is performed by calendar year.
Rate per 200’000 working hours for number of recordable incidents with lost time > 1 working day.
Number of lost days/incidents subject to registration with loss > 1 working day.
4
Rate per 200’000 working hours for total of lost workdays.
2

3

Employee structure

Employee structure
2’973

2’732

Permanent

Number of employees

2’724

2’508

2’339

Male

2’320

2’145

2’000

FTE

Female

404

363

339

EMEA

1’264

1’152

1’037

APAC

1’155

1’066

1’014

Americas

305

290

288

Temporary

249

224

199

Male

188

171

158

Female

61

53

40

EMEA

19

16

13

APAC

229

207

185

1

1

1

Full-time

2’856

2’628

2’445

Male

2’442

2’256

2’103

Female

414

372

342

Americas

EMEA

1’167

1’065

959

APAC

1’384

1’273

1’199

305

290

287

Part-time

Americas

117

104

93

Male

66

60

56

Female

51

44

37

EMEA

116

103

91

APAC

0

0

0

1

1

2

Number of external workers

Americas

305

298

187

Number trainees & apprentices

178

153

91

62 Annual Report 2022

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Sustainability Report

Employee turnover2022

New employee hires(% of yearly average)

2021

2020

FTE

% yearly average

FTE% yearly average

FTE% yearly average

510

17.7%

451

17.1%

149

5.8%

FTE

% end of year

FTE

% end of year

FTE

% end of year

New employee hires(% of end of year)

510

17.2%

451

16.5%

149

5.9%

Male

427

17.0%

382

16.5%

119

5.5%

Female

83

17.9%

69

16.6%

30

7.8%
20.3%

<25 years

55

43.6%

45

50.2%

16

25–34 years

210

26.9%

171

22.2%

54

6.9%

35–44 years

145

13.8%

121

13.7%

35

4.5%

45–54 years

63

10.3%

69

11.6%

27

4.9%

54+ years

37

9.2%

45

11.4%

17

4.8%

FTE

% yearly average

FTE% yearly average

Headcount1% yearly average1

308

10.7%

266

10.1%

249

9.5%

FTE

% end of year

FTE

% end of year

Headcount1% end of year

Employee turnover (% of end of year)

308

10.4%

266

9.7%

249

9.6%

Male

264

10.5%

230

9.9%

214

9.8%

Female

44

9.4%

36

8.7%

35

8.8%

<25 years

17

13.4%

17

19.1%

19

23.5%

Employee turnover (% of yearly
average)

25–34 years

100

12.8%

82

10.6%

77

9.8%

35–44 years

80

7.6%

87

9.9%

53

6.7%

45–54 years

43

7.0%

36

6.0%

39

6.9%

54+ years

68

16.9%

44

11.1%

61

16.7%

1

Turnover data for 2020 is based on headcount.

63 Annual Report 2022

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Sustainability Report

GRI content index
Burckhardt Compression has reported in accordance with the GRI Standards for the period 1 April 2022 to 31 March 2023.
GRI 1 Foundation 2021 has been used for compiling this report and there is no applicable GRI Sector Standard.

GRI standard

Disclosure

Reference

Further informationand omissions

2-1 Organizational details

p. 102,
pp. 124–125

a. Burckhardt Compression Holding AG

2-2 Entities included in the organization’ssustainability reportingp. 100,
pp. 124–125

iii. Consolidation approach applies to all
disclosures.

2-3 Reporting period, frequency, and contact
point

–

a. Sustainability report: 04.01.2022 to
03.31.2023, yearlyb. Annual report: 04.01.2022 to 03.31.2023
c. Publication: 06.06.2023
d. Contact: sustainability@burckhardtcompression.com

2-4 Restatements of information–

Energy consumption and intensity, andsubsequently CO2 emissions and intensity.
for 2019 and 2020 have been recalculated
due to methodological adjustments of
conversion factors and working hours calculation. The values are higher than statedin the previous report.

GRI 1: Foundation 2021
GRI 2: General disclosures 2021
The organization and its
reporting practices
GRI 2: General disclosures 2021

Share of renewable electricity of 2020 has
been recalculated due to methodologicaladjustments. The values are slightly higher
than stated in the previous report.
We adjusted the 2021 values for projectsustainability screening due to more
rigorous classification criteria.
2-5 External assurance–This report was not externally verified.

2-6 Activities, value chain, and other business
relationships

p. 7, p. 40,
p. 102,
p. 1042-7 Employees

p. 62

c. FTE at the end of the reporting period.
d. Trainees & apprentices are not included
since some of our apprentices have an external work contract with the AZW Training
Center in Winterthur.

2-8 Workers who are not employees

p. 62

a. i. Production employees, service
technicians and engineers.
a. ii. Engineering, project management,
field services, compressor manufacturing
and assembly.
b. FTE at the end of the reporting period.

Activities and workers
GRI 2: General disclosures 2021

64 Annual Report 2022

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Sustainability Report

Governance
GRI 2: General disclosures 2021

2-9 Governance structure and composition

pp. 73-79

2-10 Nomination and selection of the highest
governance body

Bylaws Art.
15-16,
pp. 73-79

2-11 Chair of the highest governancebody

pp. 74-76

2-12 Role of the highest governance body inoverseeing the management of impacts

p. 55, p. 57,
pp. 76-79,
Organi­zationregulation
1.-4.

2-13 Delegation of responsibility for managing
impacts

p. 57,
pp. 76-79,
Organi­zationregulation
1.-5.

2-14 Role of the highest governance body insustainability reporting–

Board of Directors releases the Annual
Report for the general assembly ofshareholders.

2-15 Conflicts of interest

p. 71,
pp. 73-75

a. Annual written confirmation by all
members of the highest governance body.

2-16 Communication of critical concerns

pp. 55-56,
Speak Up
policy2-17 Collective knowledge of the highest governance bodyp. 77, Organization
regulation
1.4.4.

2-18 Evaluation of the performance of thehighest governance body

p. 79

2-19 Remuneration policy

pp. 84-87

2-20 Process to determine remuneration

pp. 84-87

2-21 Annual total compensation ratio–

2-22 Statement on sustainable development
strategy

pp. 8-10

2-23 Policy commitments

pp. 39-41,
pp. 55-56,
Code of
Conduct

2-24 Embedding policy commitments

pp. 55-56,
Organization regulation 3.-4.

2-25 Process to remediate negative impacts

pp. 55-56,
Speak Up
policy2-26 Mechanisms for seeking advice andraising concerns

pp. 55-56,
Speak Up
policy2-27 Compliance with laws and Regulations

p. 56

Strategy, policies, and practices
GRI 2: General disclosures 2021

65 Annual Report 2022

Burckhardt Compression

b. i. Annual discussion with major shareholders and proxy advisors.
b. ii.-iv. Disclosed, applying not publicly
disclosed criteria.

Through ongoing communication andreporting.

This information is not available. We are
evaluating the possibility of providing suchinformation in the future.

Sustainability Report

GRI standard

Disclosure

Reference

Further informationand omissions

2-28 Memberships associations–– AZW Winterthur, Board– CII Confederation of Indian Industry– EFRC - European Forum for Reciprocating Compressors– ICAAMC - Compressor Applications andMachinery Committee– Joint Chamber of Commerce Switzerland– CIS/Georgia– SWISSMEM - Schweizer Maschinen-,
Elektro- und Metall-Industrie– Swiss Mechatronics– Swiss-American Chamber of Commerce– Swiss-Chinese Chamber of Commerce– Swiss-Indian Chamber of Commerce– Switzerland Global Enterprise

Stakeholder engagement
GRI 2: General disclosures 2021

2-29 Approach to stakeholder engagement

pp. 59-60

2-30 Collective bargaining agreements

p. 50

3-1 Process to determine material topics

p. 58

3-2 List of material topics

p. 58

b. Where usual and available we takeexisting bargaining agreements as abenchmark.

Material topics
GRI 3: Material Topics 2021
Greenhouse gas emissions andclimate change
GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 41-43

GRI 305: Emissions 2016305-1 Direct (Scope 1) GHG emissions

p. 43, p. 61

305-2 Energy indirect (Scope 2) GHG emissions

p. 43, p. 61

305-3 Other indirect (Scope 3) GHG emissions

p. 43, p. 61

305-4 GHG emissions intensity

p. 43, p. 61

We are working on a full Scope 3 emission
calculation. We expect to publish this datain fiscal year 2023.

Energy use and efficiency
GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 44-45

GRI 302: Energy 2016

302-1 Energy consumption within the organization

p. 44, p. 61

302-3 Energy intensity

p. 44, p. 61

Own indicator

Share of renewable electricity

p. 44, p. 61

Longevity and recyclability
GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 45-47

Own indicators

Reused or refurbished components

p. 46

Sales of revamp and upgrade services

p. 47

GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 48-49

Own indicators

Sustainability classification of business activities

p. 49

Environmental impacts ofapplication purpose

Working conditions
GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 49-51

GRI 401: Employment 2016

401-1 New employee hires and employee
turnoverp. 50, p. 63

Own indicators

Score satisfaction work situation

p. 51

Score workplace recommendation

p. 51

Score employee engagementp. 51

66 Annual Report 2022

Burckhardt Compression

The breakdown by region is not disclosed
for business reasons.

Sustainability Report

Occupational health and safety
GRI 3: Material Topics 2021

3-3 Management of material topics

p. 52

GRI 403: Occupational Healthand Safety 2018403-1 Occupational health and safety
management system

p. 52

b. All employees who are under the careand control of Burckhardt Compression(including external employees on our premises) are covered.

403-2 Hazard identification, risk assessment,
and incident investigation–a. The EOHS team (Environment, Occupational Health, and Safety team), under the
direction of the Quality Team and Safety
Officer, is responsible for conducting risk
assessments using risk graphs. The risk
assessment will be used for training andawareness activities in the respective workarea. Safety inspections are used for risk
mitigation.
b. Notifications will be made using a dedicated EOHS notification form.
c. A work stoppage procedure is in place
to stop work in the event of an unsafe
situation.
d. There is a procedural policy for reportingnear misses, incidents, investigations, nonconformities, and corrective and preventive
actions.

403-3 Occupational health services–

There is a company ambulance service atthe site in Winterthur, which is operated inconjunction with surrounding companies.

403-4 Worker participation, consultation,and communication on occupational healthand safety–

A specific procedure for Consultation &Participation, Communication regulates
the involvement of employees. Involvementtakes place at all levels (steering committee, core team, execution teams).

403-5 Worker training on occupational healthand safetyp. 52

In addition to mandatory training during induction, regular specific training is provided
on work-related hazards, first aid, andemergency and evacuation.

403-6 Promotion of worker healthp. 52

Non-occupational services and offerings
depend on country-specific implementation and may include the following:– regular health check-ups– access to medical facilities– other preventive measures, for example
as part of our Dr. BeWell program

403-7 Prevention and mitigation of occupational health and safety impacts directly linked
by business relationships

pp. 40-41

This aspect is covered in our approach tosupply chain due diligence.

403-8 Workers covered by an occupational
health and safety management system

p. 52

i. 100% are covered by an occupational
health and safety management system.
ii. 100% of employees are covered by aninternally audited system.
iii. 91.6% are covered by an externallycertified system.

403-9 Work-related injuries

pp. 52-53,
p. 62

We have no differentiation between
high-consequence work related injuries(a. ii.) and work-related injuries (a. iii.).

403-10 Work-related ill health

p. 53

67

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Sustainability Report

GRI standard

Disclosure

Reference

Product safety
GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 54-55

GRI 416: Customer Healthand Safety 2016416-1 Assessment of the health and safety
impacts of product and service categories

p. 55

416-2 Incidents of non-compliance concerning
the health and safety impacts of products andservices

p. 55

GRI 3: Material Topics 2021

3-3 Management of material topics

pp. 55-56

GRI 205: Anti-corruption
2016

205-1 Operations assessed for risks related tocorruption

p. 56

205-2 Communication and training aboutanti-corruption policies and procedures

p. 56

205-3 Confirmed incidents of corruption andactions taken

p. 56

GRI 206: Anti-competitive
behavior

206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

p. 56

68 Annual Report 2022

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Business conduct

Further informationand omissions

Sustainability Report

SASB Mapping
SASB Sustainability Disclosure Topics & Accounting Metrics
Topic

SASB Accounting Metric

Code

Reference

Further Information andomissions

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

RT-IG-130a.1

GRI 302-1
GRI 302‑3
Page 61

Percentage grid electricity has
not been evaluated separately
until now. We are working on
making this breakdown available
in the future.

Employee Health & Safety(1) Total recordable incident rate
(TRIR),(2) fatality rate, and(3) near miss frequency rate
(NMFR)

RT-IG-320a.1

GRI 403-1
to 8 Pages
53, 62

We do not yet track near miss frequency rate (NMFR). We are evaluating the possibility of providing
such information in the future.

Fuel Economy & Emissions in
Use-phase

Sales-weighted fleet fuel efficiency for medium- and heavy-duty
vehiclesRT-IG-410a.1

n/a

Sales-weighted fuel efficiency for
non-road equipment

RT-IG-410a.2

n/a

Not applicable to our products.
The vast majority of Burckhardt
Compression’s compressors are
powered by electricity.

Sales-weighted fuel efficiency forstationary generators

RT-IG-410a.3

n/aSales-weighted emissions of: (1)nitrogen oxides (NOx) and (2) particulate matter (PM) for: (a) marine
diesel engines, (b) locomotive diesel engines, (c) on-road mediumand heavy-duty engines, and (d)other non-road diesel engines

RT-IG-410a.4

n/aMaterials Sourcing

Description of the managementof risks associated with the use ofcritical materials

RT-IG-440a.1

Pages 40-41,
78-79,

Remanufacturing
Design & Services

Revenue from remanufactured
products and remanufacturingservices

RT-IG-440b.1

Activity Metric

Code

Reference

Further Information andomissions

Number of units produced byproduct category

RT-IG-000.A

n/aThis information is not disclosed
for business reasons.

Number of employees

RT-IG-000.B

GRI 102-8
Page 62

69 Annual Report 2022

Burckhardt Compression

SASB Activity Metrics

This information is not disclosed
for business reasons.