SIKA
BUSINESS YEAR

2023
WWW.SIKA.COM/ANNUALREPORTSUSTAINABILITYREPORT

Sika creates value for all
stakeholders – always
considering ESG and economic aspects in all its­activities by adhering toclear strategic targets.
GHG EMISSIONS PER TON SOLD(SCOPE 1 AND 2)–4.4%

LOST TIME ACCIDENTS PER 1,000 FTEs

–23.9%WOMEN IN SIKA WORKFORCE

24.3%

TABLE OF CONTENTSSUSTAINABILITY AT SIKA 

40

PRODUCTS AND CUSTOMERS

111

Sustainability organizational structure

41

Summary & highlights

111

Sustainability Strategy 2019–2023 

44Innovation management

113

Sika and the Sustainable Development Goals (SDGs) 

46

Product portfolio

116

Materiality analysis

47

Product safety, quality, and reliability

119Partnerships and collaborations

49

Responsible marketing123

Customer relationship management

125

PEOPLE50
Summary & highlights

50

PROCUREMENT127

Corporate governance

52

Summary & highlights 127

Health and safety

53

Responsible procurement

129

Business ethics and integrity 

59

Human rights

62

Labor management

64

Diversity and inclusion

69

Human capital development

DIGITALIZATION AND IT LANDSCAPE

134

Summary & highlights 

134

Digitalization and IT landscape

136

72

ECONOMIC PERFORMANCE AND VALUE CREATION

142

Community relations

75

Summary & highlights 142

Public policy

78

Economic performance

144

Key performance indicators

79

Tax approach

146

PLANET83

METHODOLOGICAL NOTE 

147

Summary & highlights

83

Scope of reporting and consolidation

147

Climate change

85

Reporting standards

147

GHG emissions 

86

Reporting regulations

147

Energy management

89

Data collection and reporting methodologies

149

Water management

92

ESG data governance including rebaselining

150

Waste management

97

INDEPENDENT ASSURANCE REPORT152

Circular economy

99

Biodiversity and nature

101

Air emissions

103

Environmental compliance

104

Key performance indicators

106

SIKA SUSTAINABILITY REPORT 2023
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39

SUSTAINABILITY
AT SIKAAs a technology leader with a global presence, The progress made on sustainability targets isSika focuses on creating value for all stakeholders closely monitored and measured. To ensure acacross the entire value chain – always consider- countability, there is a clear structure in placeing environmental, social, governance (ESG) and whereby financial and non-financial performance
economic aspects in all its activities by adhering metrics are transparently integrated into incento clear strategic targets.
tive programs for senior management.
Sika can make the largest positive impact by The company’s continuous focus on sustainability
offering innovative technologies which allow is assured by the new Strategy 2028, which intethe construction and transportation industries grates both financial and non-financial targets.
to be more sustainable. The company helps its
customers build healthier and safer buildings In the Sika Sustainability Report 2023, the comand vehicles with a lower carbon footprint. By pany discloses its sustainability performance atoffering such innovative and sustainable prod- the end of the strategic cycle 2019–2023 acrossucts and solutions along its entire value chain its six strategic target areas: climate performance,and keeping employee well-being at the center energy, waste/water, community engagement,of its business and operations, Sika directly occupational safety, and sustainable solutions.
contributes to the United Nations Sustainable The structure of the report is built on the material
Development Goals (UN SDGs).
topics identified during the materiality assessment conducted in 2022, highlighting its perforThe outstanding engagement of its employees mance and reflecting the sustainability impact
and their identification with the company are a and dependencies between Sika’s operations,key contributor to Sika’s success. Sika’s healthy products, solutions, and employees, suppliers,
corporate culture promotes an inclusive work customers, communities, and planet.
environment where everyone is treated fairly
and has equal access to opportunities. Since thecompany foundation over 100 years ago, social
responsibility has been integral to the culture.
Sika is committed to fostering stakeholder engagement in all the countries where it is active.

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40

SUSTAINABILITY ORGANIZATIONAL STRUCTURE
GRI 2-12

GRI 2-13

GRI 2-14Over the past years, Sika has strengthened its sustainability
organization, defining roles and responsibilities at various levels
throughout the entire organization.
BOARD LEVELThe Board of Directors (BoD) and the Board Chair are responsible
for Sika sustainability performance. The BoD reviews and endorses the development and implementation of sustainability
policies and strategies, and the Board Chair oversees sustainability-related topics by receiving regular updates from theGroup Management.

Sustainability Committee at Board level. Combining leadershipfor Innovation, Sustainability, and Operation Technologies allows Sika to accelerate the integration of sustainability within
the organization at all levels, and to remain a leader within theindustry. The Chief Innovation & Sustainability Officer is responsible for:— Taking on the leadership and development of the company’s
global R & D strategy and organization, as well as externalinnovation collaborations with parties such as academia orstart-ups.
— Aligning sustainability and R & D teams and strengthening andaccelerating the Sika concept for enabling sustainable construction and transportation by placing sustainability aspects
at the core of strategic and operational innovation processes.
— Raising awareness and knowledge about sustainability andinnovation throughout the organization. Strategizing towards
transformational leadership for impactful innovation andcompetitive advantage through the creation of sustainablevalues. The role brings into focus ESG governance standards
and compliance with sustainability-related legal and regulatory obligations.
— Planning and guiding the net zero and innovation journey inSika’s operations and along the entire value chain.
— Expanding the portfolio of high-performance, sustainableproducts by using the Sika Sustainability Portfolio Management (SPM) Methodology.

The Sustainability Committee (SC) consists of three Board Members, each of whom brings expertise in a specific ESG area. The
group prepares sustainability-related topics for discussion anddecision-making in the Board. The SC focuses on the following
four areas: completing a formal ESG risk and opportunity assessment, including the Materiality Analysis; setting measurable goals that are aligned with the company’s overall strategy;
maintaining the organization and allocating resources; andcommunicating effectively through reporting and stakeholder
engagement. Sika’s strong focus on ensuring the use of accurate
and consistent quantitative measures in non-financial reportingis reflected in the close link between the Sustainability Committee and the Audit Committee, with two of its Members sitting on
both committees. In 2023, the Sustainability Committee met fivetimes. After each meeting, a report was issued to the BoD. For
more information on Sika’s BoD and Board Committees, please The Head Human Resources, Legal & Compliance is a Member
see the Corporate Governance Report on p.163.
of the Group Management who leads the human resources,
legal, and compliance functions to ensure business integrity,
GROUP MANAGEMENT LEVEL
compliance with the law, respect for human rights, diversity,
Group Management is responsible for the development and and people development. The Human Resources function deimplementation of actions that help achieve the defined sus- fines the people strategy that drives employee engagement
tainability strategy and targets. Group Management is also and promotes a culture of continuous learning, which faciliresponsible for risk management at the highest executive level tates growth and development for all Sika employees to enable
and provides regular updates to the Board.
them to perform at their best. Human Resources contributes
to creating an attractive, safe, and inclusive work environment.
The Chief Financial Officer (CFO) is a Member of the Group Sika has developed a framework to promote diversity, as well
Management and leads the corporate finance function, which as measures to ensure fair, inclusive, and equal treatment ofis responsible for financial and non-financial (ESG) controlling. all employees. The Legal and Compliance functions’ primary
The holistic controlling system enables Sika to track finance, op- role is to safeguard the company’s interests and reputation
erations, quality, and sustainability performance in a coordinated by mitigating risks and ensuring that Sika operates within theway, ensuring a high quality of non-financial data and information. boundaries defined by the law, including regulatory complianceFurthermore, this organization strengthens the controlling activi- requirements. Legal and Compliance act as strategic businessties and supports management in their decision-making process. partners, guiding the company through complexities, minimizRisk management (incl. climate-related risks) falls also under the ing potential liabilities, as well as enabling Sika’s growth bydomain of the Corporate Finance department, headed by the CFO. providing advice on acquisitions. They foster ethical businessconduct and a speak-up culture. They help the organization to
The Chief Innovation & Sustainability Officer is a Member of live the Code of Conduct principles every day, raising awarenessthe Group Management and contributes to the agenda of the through systematic trainings to employees.

SIKA SUSTAINABILITY REPORT 2023
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41

The Head Global Procurement reports directly to the CEO. This The Internal Sustainability Committee coordinates all sustainfunction is not a Member of Group Management but attends all ability-related projects aimed at achieving sustainability targets
meetings and ensures that sustainability is embedded in pro- and monitoring implementation of the Sustainability Strategy
curement, focusing on sustainable supply and supplier engage- throughout the Group. It also prepares the decision-making ofment. Procurement plays a key role in supply chain transparency Group Management on such topics. The Committee is chaired byby selecting, evaluating, and cooperating with vendors that are the Chief Innovation & Sustainability Officer and meets quarterly.
committed to ESG standards. With a strong focus on sustain- It includes the following corporate functions: Innovation & Susable supply, cost, and efficiency improvement, the Head Global tainability, Operations, Quality & EHS, Communications & Investor
Procurement ensures responsible sourcing and compliance with Relations, Controlling, Mergers & Acquisitions, Human Resources,
sustainability and quality standards within procurement and Compliance, Procurement, Marketing, and Target Markets. Since
Sika’s upstream supply chain.
2022, Regional Sustainability Managers have joined the Committee to coordinate all projects requiring strong collaboration ofSince 2022, global Quality and Environment, Health & Safety corporate and regional functions.
(Q & EHS) was under the responsibility of the Head Global Procurement. Starting from January 2024, to meet future requirements REGIONAL AND LOCAL LEVEL
and strengthen the organization, a dedicated function has taken At the regional level, a network of four Regional Sustainability
over responsibility for these areas. The newly appointed Head Managers, coordinated by the Sustainability Leadership Team, isGlobal Operations & EHSQ reports directly to the CEO.
tasked with implementing the Sustainability Strategy. Together
with Regional EHS and Operations managers, they support local
CORPORATE LEVEL
subsidiaries in setting and developing their dedicated sustainThe Sustainability Leadership Team, created in 2022, orchestrates ability roadmaps and in implementing Group initiatives. At thesustainability-related projects and facilitates the interaction local level, Local Sustainability Managers are responsible forand information exchange across functions and departments planning sustainability initiatives and developing a sustainability
at Group and regional level, combing three areas: Controlling, roadmap at country level, with the support of General Managers,
Sustainable Products, and Sustainable Portfolio. The Leadership Operations, EHS, Target Market, and R & D Managers.
Team reports directly to the Chief Innovation & Sustainability Officer and is responsible for:
BUSINESS MODEL— Formulating and reviewing policies and guidelines and allocat- Sika is a specialty chemicals company with a globally leading poing budget for projects and initiatives.
sition in the development and production of systems and prod— Ensuring the ESG program – including the net zero roadmap ucts for bonding, sealing, damping, reinforcing, and protection
and targets – is integrated into the business strategy and risk in the building sector and automotive industry. The company ismanagement process.
well-positioned in both emerging and mature markets thanks to— Supporting all four regions and corporate organizations in its global network of national subsidiaries in 103 countries, along
their sustainability journey to ensure a consistent approach with its first-class solutions that are tailored to customer needs.
throughout the Group.
Sika creates sustainable value for its stakeholders to whom the— Raising awareness and knowledge among the workforce derived economic value is distributed. This includes governments
about sustainability-related topics.
through taxes, employees through compensation and benefits,— Liaising with the Sustainability Committee at Board level and shareholders through dividends and increased enterprise value,
the Internal Sustainability Committee.
suppliers and service providers through raw material and service— Ensuring that all relevant sustainability aspects are consid- prices, and society through taxes and community projects. Part
ered in new product development, from the integration of of the value earned is retained and invested to develop newlife cycle assessment (LCA) principles and circular economy products and solutions, acquisitions, and capital investments.
approaches to strategic improvements in product carbon For more information on Sika’s Business Model, please see thefootprint and the application of the Sustainable Portfolio “Strategic Report”, “Business environment” chapter on p.12–13 ofManagement (SPM) Methodology.
the ­Annual Report 2023.
— Optimizing Sika’s product portfolio, focusing on GHG emissions reduction, circular economy, and new business models.
— Ensuring a comprehensive ESG reporting framework to bestmonitor Sika’s sustainability performance.

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42

SIKA SUSTAINABILITY GOVERNANCE
BOARD OF DIRECTORSSUSTAINABILITYCOMMITTEEHEAD GLOBALPROCUREMENTGROUP MANAGEMENTCHIEF FINANCIAL
OFFICERCHIEF INNOVATION &­SUSTAINABILITY OFFICERSUSTAINABILITY LEADERSHIP TEAMHEAD HUMAN RESOURCES,LEGAL & COMPLIANCE

INTERNAL SUSTAINABILITY COMMITTEEREGIONALSUSTAINABILITYMANAGERSLOCALSUSTAINABILITYMANAGERSRISK MANAGEMENT
As a global player in specialty chemicals, Sika is exposed to avariety of risks. To ensure the Group’s freedom of action, safeguard its reputation, and protect the capital invested in Sika,
the Group Management must regularly analyze potential risks
and integrate them into the strategic decision-making process.
The Board of Directors (BoD) is Sika’s highest governing bodyand is responsible for the assessment of risk management. Its
duties include the annual reassessment of the risk situation atGroup level, and it is also the highest governance level of climate-­
related risks and opportunities. It is responsible for reviewing andendorsing the implementation of sustainability policies, while
the Chair of the Board oversees climate-related topics by receiving regular updates from the Group Management.

respect for human rights, and combating corruption, please see
the “Strategic Report”, “Risk Management and TCFD Recommendations” chapter on p.22 of the Annual Report 2023.
Furthermore, between 2021–2022, Sika conducted a Materiality
Analysis, focusing on potential ESGE – environmental, social, governance, and economic – material topics, to capture the sustainability impact, dependencies, risks, and opportunities of Sika’s
operations, products, and services along the entire value chain.
The analysis resulted in the selection of 29 out of over 100 potential material topics. The Materiality Matrix was reviewed andapproved by the Sustainability Committee at Board level. For
more information on the Materiality Analysis conducted in 2022,
please see the summary report • Sika Materiality Analysis 2022
available on the corporate website.

The company has a comprehensive risk management system
structured at Group level which is effective for all its subsidiaries. Risks are identified at an early stage and integrated into
strategic decision-making processes. Risk management helps
identify new opportunities and adds value to the business. Sika’srisk management framework is in line with the Enterprise Risk
Management (ERM) framework. It ensures that business objectives can be achieved and obligations to customers, shareholders,
employees, and society can be met. For more information on
the main risks in relation to environmental matters, in particular
the climate-related goals, social issues, employee-related issues,

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SUSTAINABILITY STRATEGY 2019–2023
The Sustainability Strategy 2023 integrates the results of theMateriality Analysis conducted in 2018 and the development of
the Sika Growth Strategy. It refers to Sika’s ambition to maximize
the value of its solutions and contributions for all stakeholder
groups, while simultaneously minimizing the risks and resource
consumption associated with value generation. With the Strategy 2023, Sika pursued the following six strategic target areas
with 2019 as a baseline:

SUSTAINABILITY PERFORMANCE 2019–2023 1
Climate Performance
We run our business in a responsible way and mitigate climate change and its impacts.
TARGET 2019–2023
of GHG emissions–12% reduction
per ton sold (scope 1 and 2)

PERFORMANCE 2019–2023

PERFORMANCE 2023

of GHG emissions–41.8% reduction
per ton sold (scope 1 and 2) .

of GHG emissions–4.4% reduction
per ton sold (scope 1 and 2) .

The GHG emissions intensity
was reduced by –11.3 kg CO2eq.

The GHG emissions intensity
was reduced by –0.7 kg CO2eq.

1

2

EnergyWe manage resources and costs carefully.
TARGET 2019–2023
energy consumption–15% lessper ton soldPERFORMANCE 2019–2023
in the energy–21.9% reduction
consumption per ton sold.
Energy consumption per ton solddecreased by –83 MJ.

Increase shareof electricity fromrenewable energy sourcesin the share of+40.6% increasepurchased electricity frompoints renewable sources.

Purchased renewable electricity
rate increased from 15.0% to55.6%.

PERFORMANCE 2023
in the energy–6.2% reduction
consumption per ton sold.
Energy consumption per ton solddecreased by –20 MJ.
in the share of–7.0% decreasepurchased renewable electricity

points from renewable sources.

Purchased renewable electricity
rate decreased from 62.7% to55.6%.

Waste/Water
We increase material and water efficiency.
TARGET 2019–2023
waste generation–15% lessper ton soldPERFORMANCE 2019–2023
waste generation–25.0% lessper ton sold.
Waste intensity per ton solddecreased by –3.5 kg.

recycling rate
+25% higherof total waste

waste generation–2.5% lessper ton sold.
Waste intensity per ton solddecreased by –0.3 kg.

recycling rate.
+27.7% higher
Waste recycling rate increased

recycling rate.
+7.5% higher
Waste recycling rate increasedin water consumed–38.4% reduction
per ton sold.

in water consumed–12.2% reduction
per ton sold.

from 34.0% to 43.4%.

water consumption–15% lessper ton soldPERFORMANCE 2023

Water consumption per ton solddecreased by –0.13 m3.

from 40.4% to 43.4%.

Water consumption per ton solddecreased by –0.03 m3.

1 Baseline: 2019
2 Based on market-based GHG emissions.
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Community Engagement
We build trust and create value – with customers, communities, and society.
TARGET 2019–2023

PERFORMANCE 2019–2023

days of volunteering
10,000 working
work per year

average working
3,265 yearlydays were dedicatedto volunteering work.

+50% more projects

were carried+293.2% projects
out in and for local
communities.

+50% more direct beneficiaries

PERFORMANCE 2023
days were dedicated
7,953 working
to volunteering work.

were carried+43.3% projects
out in and for local
communities.

beneficiaries+1,531.7% directof the community

beneficiaries+136.1% directof the community

PERFORMANCE 2019–2023

PERFORMANCE 2023

engagement program.

engagement program.

Occupational Safety
Sika employees leave the workplace healthy.
TARGET 2019–2023–50% Lost Time Accidents

Time Accidents–31.0% Lost
LTAs per 1,000 FTEs

decreased by –43.9%.

0 fatalities

3 fatalities
among Sika employees andcontractors.

Time Accidents–13.9% Lost
LTAs per 1,000 FTEs

decreased by –23.9%.

1 fatality
among Sika employees andcontractors.

Sustainable Solutions
We are leading the industry by pioneering a comprehensive portfolio of customer-focused solutions, combining both higher
performance and improved sustainability.
TARGET 2019–2023
All new product developmentswith Sustainable Solutions

PERFORMANCE 2019–2023
When it comes to product development,
Sika combines higher performance withadditional sustainability benefits.

PERFORMANCE 2023
Sika completed the rollout of the
Sustainability Portfolio Management (SPM)
Methodology to evaluate, classify, andmarket products in terms of performanceand sustainability.

During the • Capital Markets Day in October 2023, Sika released
the new Strategy 2028 – “Beyond the Expected” – which is basedon four pillars: Market Penetration, Innovation & Sustainability,
Acquisitions, and People & Culture, including a set of both financial and non-financial targets. With these pillars, sustainability
comes into further focus.

For more information,please visit www.sika.com/sustainability

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SIKA AND THE SUSTAINABLE DEVELOPMENT GOALS (SDGs)
The United Nations Sustainable Development Goals (UN SDGs),
also known as the Global Goals, were adopted by the United­Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace
and prosperity. The 17 SDGs are integrated — they recognize that
action in one area will affect outcomes in others, and that development must balance social, economic, and environmental
sustainability. Achieving these targets requires concerted and
immediate action from the public and private sectors aroundthe world. The creativity, know-how, technology, and financialr­ esources from all of society are necessary to achieve the SDGs inevery context. In 2023, Sika identified, prioritized, and assessed
its activities to demonstrate how it translates global sustainability commitments into action. The analysis allowed Sika toevaluate which UN SDGs, targets, and indicators its activities
contributed to during the reporting year. In total, the company
contributes to 13 of the 17 UN SDGs. For more detailed information, please consult the document • Sika and the UN SDGs
available on the corporate website.

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MATERIALITY ANALYSISGRI 3-1

GRI 3-2

A materiality assessment is a process to identify the most im- STAKEHOLDER ENGAGEMENT
portant sustainability topics, opportunities, and risks from two Stakeholders are defined as groups or individuals that are sigperspectives: the importance to stakeholders and the importance nificantly affected by the organization’s activities, products,
to the company. The outcome is a materiality matrix, showing all and/or services, or whose actions can be expected to affect the
topics which are identified and prioritized to focus on the ones organization’s ability to achieve its objectives. In the Materialthat matter the most to Sika’s business and its stakeholders. ity Analysis approved by the BoD in May 2022, Sika identified
The information gained through this process supports decision- the most relevant internal and external stakeholder groups formaking about the direction of the business, allows the integra- the company. Regular stakeholder engagement is essential fortion of sustainability topics into the business strategy, and the responsible business practice and key to capturing insights fromselection of relevant topics for sustainability reporting. Between across the business by ensuring inclusiveness. For more detailed
2021 –2022, Sika conducted a Materiality Analysis, focusing on information on engagement activities conducted in 2023 andpotential ESGE – environmental, social, governance, and eco- the key topics and concerns raised, please see the document
nomic – material topics, to capture the sustainability impact, • Stakeholder Engagement Activities 2023 available on thedependencies, risks, and opportunities of Sika’s operations, corporate website.
products, and services along the entire value chain. The analysis
resulted in the selection of 29 out of over 100 potential material
topics. The Materiality Matrix was reviewed and approved by the
Sustainability Committee at Board level. For more informationon the Materiality Analysis conducted in 2022, please see thesummary report • Sika Materiality Analysis 2022 available on
the corporate website.
In 2023, during the Board of Directors’ December meeting, theSustainability Committee reviewed the assessment conducted
in 2022, confirming the selection of the 29 material topics andtheir relevance for the business.
Sika is planning to conduct a new materiality assessment in 2024,
to comply with the requirements of the European Commission’s
proposal for the Corporate ­Sustainability Reporting Directive(CSRD), which requires companies to elaborate on a double materiality perspective.
MATERIAL TOPIC BOUNDARIESThe concept of “topic boundary” is based on the expectationthat organizations have a responsibility not only for the direct
impact they cause, but also for the indirect impact resulting fromtheir business relationships. These concepts are covered in the
UN Guiding Principles on Business and Human Rights and theOECD Guidelines for multinational enterprises 1. Sika structured
the Sustainability Report around its material topics, organizedby dimensions – environmental, social, governance, economic –and their related sub-topics and boundaries. For more detailed
information on material topics and boundaries, please see thedocument • Material Topic Boundaries 2023 available on thecorporate website.

1•

OECD Guidelines for multinational enterprises

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Relevance to Stakeholders

V ER Y HIGH

SIKA MATERIALITY MATRIX

2

1

4

3

3

1

4

6

5

4
5

3

8
8

9

6
6

2
2

HIGH

4

10

5

7

3

7

2

7

1

MEDIUM

1LOW

MED I U M

H IGH

VERY H IGH

Relevance to Sika

ENVIRONMENTAL
1.
2.
3.
4.
5.
6.
7.

Biodiversity and Nature
Water Management
Air Emissions
Waste Management
Product Portfolio
Energy Management
Climate Change

SOCIAL
1.
2.
3.
4.
5.
6.
7.

Community Relations
Stakeholder Engagement
Labor Management
Human Rights
Diversity and Inclusion
Human Capital Development
Talent Attraction andRetention
8. Health and Safety

GOVERNANCE
1.
2.
3.
4.
5.
6.

Public Policy
Tax Strategy
Corporate Governance
Responsible Procurement
Responsible Marketing
Customer RelationshipManagement
7. Compliance
8. IT Landscape
9. Risk and Crisis Management
10. Business Ethics and Integrity

ECONOMIC
1.
2.
3.
4.

Digitalization
Economic Performance
Circular Economy
Innovation Management

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PARTNERSHIPS AND COLLABORATIONSGRI 2-28

Sika partners with numerous organizations to actively drive theprogress of sustainability in its industries and develop its own
performance. Moreover, collaborations across the entire value
chain are part of the principles for strategic management. The

list below provides a non-exhaustive overview of industry associations, initiatives, and relevant strategic partners. For more detailed information, please see • Partnerships and ­Collaborationsand • Equity Indices available on the corporate website.

Reporting Standards & Frameworks

Membership of Associations

Initiatives

Ratings

Indices

Collaborations

For more information,please visit www.sika.com/
partnerships

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PEOPLESUMMARY & HIGHLIGHTSAMBITION
Sika aspires to create an attractive,
inclusive, and safe work environment
where people can grow and unlock
their full potential. The ambition is
to be the employer of choice and to­foster continuous high engagement,
commitment, and a sense of belonging among employees.

APPROACH
The goal is to shape a positive employee
experience, foster leaders’ effectiveness, and encourage everyone to live theSika Spirit. Corporate culture promotes
an empowering working environment
where everyone feels safe and valued,is ­treated fairly and respectfully, and hasaccess to equal opportunities. By­caring, we build trust.

HIGHLIGHTS
Revised Code of Conduct (CoC)
In 2023, Sika rolled out the revised CoC
to reinforce its commitment to sustainability topics with a stronger focus
on promoting equal opportunities,­human rights, labor standards, andsafety at work.

KEY FIGURESEMPLOYEES

33,547+21.1%

Change vs 2022

SHARE OF WOMEN IN
SIKA WORKFORCE

24.3%+0.3%

Change in % points vs 2022

LOST TIME ACCIDENTS PER 1,000 FTEs

5.4
–23.9%

Change vs 2022

Global Safety Survey 2023
The first Sika Global Safety Survey wassent to all employees in late 2022 andcompleted in February 2023 with a global
participation rate of 74%.

SIKA SUSTAINABILITY REPORT 2023
People50

MATERIAL TOPICS
Corporate
Governance

Healthand Safety

Business Ethics
and Integrity

Compliance

Human
RightsLabor
Management

Diversity andInclusion

Human Capital
Development

Talent Attraction
and Retention

Community
RelationsPublicPolicyStakeholder­Engagement

SDGs

SIKA SUSTAINABILITY REPORT 2023
People51

CORPORATE GOVERNANCE
GRI 3-3

POLICIES AND GUIDELINES•

Sika is committed to creating an attractive, inclusive, and safe
work environment where people can grow and unlock their fullpotential. A place where everyone returns home safely at the endof the workday. A place where everyone is treated fairly, with respect, and has equal opportunities. A place where people can betheir true self and develop a strong sense of belonging. It is about
empowering people at all levels to actively contribute to building
a sustainable future and passionately solve daily challenges.

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

In addition to these core values, a Leadership Commitment
framework has been installed with the purpose to inspire thewhole organization and guide the next generation of leaders.
It reflects a close connection between values and principles
and consists of the following four pillars: Drive Change, Unlock­Potential, Win Together, and Inspire. As the company grows andevolves, this framework helps preserve Sika’s corporate culture.

STRONG VALUES AS A SHARED BASIS
Customer First, Courage for Innovation, Sustainability & Integrity,
Empowerment & Respect, and Manage for Results: These are thefive core values and principles that define Sika’s corporate culture.
These values and principles serve as a compass in all countries
where Sika operates and inspire all employees around the globe.
Thus, the Group’s culture of trust, transparency, and openness has
a firm global foundation that is lived by each employee every day.

SIKA VALUES AND PRINCIPLES

1

CustomerFirst

Sika is dedicated toprovide and maintainthe highest ­quality
standards with its
products and services.

2

Courage forInnovation

Sika’s successand reputation isbased on its longstanding traditionof innovation.

3

Sustainability &Integrity

Sika takes a longterm perspectiveon the developmentof the businessand acts with respect
and res­ponsibility
towards its customers, stakeholders,and employees.

4

Empowerment &Respect

Sika believes in
the competence andthe entre­pre­neurial
spirit of its employees.

5Manage forResults

Sika aims for successand takes pride incontinuously achieving
outstanding results
and outperforming its
markets.

SIKA SUSTAINABILITY REPORT 2023
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HEALTH AND SAFETY
GRI 2-27

GRI 3-3

GRI 403-1

GRI 403-2

GRI 403-3

GRI 403-4

GRI 403-5

GRI 403-6

GRI 403-7

GRI 403-9

GRI 403-10

In 2023, Sika continued to focus on increasing awareness on
health and safety throughout the whole company via a dedicatedcommunications campaign and continuation of the key initiatives
launched in 2022 (Start with Safety, Visual Performance, Safety
Walks, and EHS tool deployment). Sika continues to improve its
occupational health and safety programs with further attention
given to safe conduct, employee participation in safety programs,
and a focus on prevention. The integration of MBCC Group into
Sika allowed for benchmarking of the two companies’ approaches
to health and safety. Two key areas for improvement have been
identified for implementation at Sika in 2024: EHS audit programand methodology, and process safety. A Global Safety Survey ofall Sika employees with a 74% participation rate was completed
in February 2023; for more information please see the text box
on p.54 of this chapter. The action plans derived from the global,
regional, and local survey results will ensure that safety remains
on the agenda of all Sika employees. Improvement in the safety
culture score has been added to the 2028 strategic targets. The
survey will be repeated at regular intervals with the objective tomonitor progress and improvement.

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Sika has set strategic targets for health and safety as part ofStrategy 2028 in line with the Safety commitment and vision.
These go beyond lost time accidents and fatalities to include
a significant reduction in recordable injuries and a measurable
improvement in the company safety culture.
RESPONSIBILITIESGeneral Managers bear full responsibility for the implementation of labor practices and safe working conditions in Sika’s
local operations. They report to regional management, whooversee the development of regional strategic plans and targets in accordance with the Group Strategy. At local level, allGeneral ­Managers, Operations Managers, and line managers are
responsible for meeting Sika’s occupational health and safetytargets and for setting local targets accordingly. From 2023, thecompensation scheme of Group Management and Sika Senior
Managers has been linked to the safety performance of thecompany. For more information, please see the Compensation
Report, on p.174 of the Annual Report 2023.

THE SIKA VISION ZERO PROGRAMCOMMITMENT
At Group level, the four key initiatives implemented in 2022 as
As part of the Sika Strategy 2028, launched in October 2023, part of a new and systematic approach for improving EHS perSika’s commitment to health and safety has been further ele- formance continued in 2023:
vated. The company commits to create a workplace where safety — “Start with Safety” behavior at all management levels throughis a value embedded in every action, decision, and interaction.
out the company is crucial. Managers demonstrate that safety
Sika’s vision is a future where every employee, contractor, andis a core value for Sika by role-modelling it. This leadershipstakeholder returns home safely, every day. Through innovabehavior is known to be a key factor in establishing a strong
tion, education, and collaboration, Sika aspires to eliminate all
safety culture. Since January 2023, each Group ­Management
accidents, prioritize the well-being of the workforce, and set an
meeting starts with a review of safety performance, lost
industry-leading benchmark for safety excellence.
time and serious event lessons learned, and an update on
the safety program.
GOALS AND TARGETS— “Safety Walks” to the shop floor that aim to proactively
The strategic target 2023 is to reduce lost time accidents by atchange unsafe behaviors and conditions. Such visits are orleast 50% (baseline 2019: 9.6 LTAs per 1,000 FTEs) and to haveganized at local level, in all regions, and involve on-site teams
no fatalities. Sika evaluates the effectiveness of its management(Production, R & D, EHS, or Administration for example) toapproach according to target achievement. For more informaimmediately implement changes and improvements. Thistion on safety targets and Sika’s related performance, pleaseroutine strengthens the safety leadership and management
see the “Sustainability at Sika” chapter, “Sustainability Strategy
commitment on safety.
2019–2023” section on p.44 of the Sustainability Report 2023.

SIKA SUSTAINABILITY REPORT 2023
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— “Manage Visual Safety Performance” through setting up vis- — A new Health and Safety e-learning program, designed toible EHS corners to display safety performance, news, best
provide comprehensive training in a convenient and accessible
demonstrated practices, etc., and using them as meeting
online format, was launched in October 2023. The e-learning
points where employees can talk about safety.
encompasses mandatory training on the Sika “Life-Saving— Deployed in 2022, the Global Incident Management tool is
Rules” and fundamental EHS minimum requirements for all
fully operational since January 2023. It allows employees
employees, as well as elective training for specific activities.
to report any incident, near miss, or safety observation for — Several communication initiatives were continued toinvestigation and follow-up of corrective and preventive acstrengthen Sika’s safety message and awareness throughtions, bringing transparency on Sika’s safety performance andthe company. The Sika Safety Campaign was refreshed withsupporting the continuous improvement approach. In 2023
new visuals and the message “Stay Alert. Don’t get Hurt”, and
the Global EHS team was active in driving adoption, providing
two Global “Safety@Sika” Newsletters were published. These
training and live sessions to facilitate the use of the tool.
included key messages from the CEO and EHS management,
the most recent safety performance results, as well as testiIn addition, on a regional level, the following activities took placemonials and best practices.
during 2023:— Global Business created a “Safety Scoring” tool, which was— Four Regional Safety Summits involving Regional Managers,
piloted in all Automotive production sites before being adRegional EHS Managers, General Managers, and Local EHS
opted by all regions. The tool is used as a self-assessment by
Managers were organized to raise awareness and generate
Local EHS managers and contributes to identifying areas for
specific action plans for improvement at regional and country
improvement and defining improvement actions. It provides
level.
a holistic picture on the status of the implemented standards— Behavior-Based Safety (BBS) programs led by Regional andand safety programs.
Local EHS Managers continued in each region to further develop safety awareness at the workplace.

GLOBAL SAFETY SURVEY 2023
The first Sika Global Safety Survey was sent to all employees
in late 2022 and completed in February 2023 with a global
participation rate of 74%. The objectives of this initiative
were to:— Receive a portrait of the safety culture at Sika as seen by
employees.
— Compare the safety culture level to industry peers and thebest ones according to the benchmark.
— Analyze differences in perception of safety culture levels
by region, country, function, and employee category.
— Develop action plans to improve safety culture over the
longer term.

the organization and there is a strong correlation between
management and employee perception of safety. To measure
the safety culture, Sika used an external proprietary survey
and scoring system which placed the company at the second
stage of a four-point safety culture scale. In aggregate for
the Group this translates to “Employees view safety as following rules. Accident rates are decreasing”. After completingthe analysis of the findings, regional, country, and functional
breakdowns were provided to top management and senior
managers, and action plans were proposed and shared with
Regional Managers during Safety Summits. The review of thevarious action plans by the regions will be conducted in 2024,
and a second Global Safety Survey will be repeated in 2025.
Based on the results, safety as a value is highly recognized at The strategic target is to reach stage four of the safety culSika and there is a clear commitment to improve the company ture scale, meaning “teams feel ownership and responsibility
performance. However, line management accountability, indi- for safety culture. They believe zero injuries is an attainablevidual responsibility, empowerment, and skills differ across goal”, by 2028.

SIKA SUSTAINABILITY REPORT 2023
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ISO 9001 – QUALITY MANAGEMENT SYSTEMOCCUPATIONAL HEALTH AND SAFETY AND
CERTIFICATIONQUALITY MANAGEMENT SYSTEM
Sika maintains a Corporate Management System which applies Number of sites
Coverage of sites under ISO scope in %440
to all Sika locations and employees and fulfils the requirements
90
440of the ISO 45001 “Occupational Health and Safety Management
420
System” and of the ISO 9001 “Quality Management System”. 420
75
61%
Local Sika companies implement their local Sika Management
60%
400
58%
Systems based on the Corporate Management System and local 400
60
regulatory and legal requirements. Newly acquired companies
380
are integrated under the Corporate Management System as 380
45
part of the integration approach. The Corporate Management
360
System is maintained by the corporate Quality & EHS function 360
30
and deployed through a network of Quality and EHS profession340
15
als throughout the regional and country organizations. Both the 340
Corporate Management System and local Sika Management
320
2021
2022
2023
Systems are audited by external parties as part of the ongoing
ISO certification efforts. Internal audits and monthly reviewsof health and safety performance support the continuous im- NON-COMPLIANCE WITH HEALTH AND SAFETY LAWS
provement of the management system and its implementation. AND REGULATIONSIn 2023, nine Group audits with a dedicated focus on EHS were Sika is committed to mitigate any potential negative impacts
conducted.
with regard to its health and safety management system. This
includes all major non-compliance cases that have been detected
In 2023, among 724 Sika locations under ISO scope 1:
externally. In 2023 Sika had three such cases:— 28% were certiﬁed according to ISO 45001 ( • Table 01: — Sika Corporation (US) – Marion: related to a lost time accident
ISO 45001 – Occupational Health and Safety Managementin 2018 where an interlock was not properly functioning, allowSystem Certification, in the “Key Performance Indicators”
ing an employee to be exposed to moving parts.
section at the end of this chapter). The percentage of certi- — Sika Corporation (US) – Cleburn: related to electrical hazards
fied Sika locations decreased due to the acquisition of MBCC.
due to insufficient covering of control boxes.
Subsequent integration process will start in 2024.
— Sika Limited (UK) – Welwyn Garden City: related to inappropri— 58% were certified according to ISO 9001 ( • Table 02:
ate storage of dangerous and flammable substances.
ISO 9001 – Quality Management System Certification, in the“Key Performance Indicators” section at the end of this chap- In all the above cases Sika has worked together with the local
ter). The percentage of certified Sika locations decreased due authorities to address all findings and implement the necessary
to the acquisition of MBCC. Subsequent integration process improvements.
will start in 2024.
HAZARD IDENTIFICATION, RISK ASSESSMENT,ISO 45001 – OCCUPATIONAL HEALTH AND SAFETY
AND INCIDENT INVESTIGATIONMANAGEMENT SYSTEM CERTIFICATION
Sika considers hazard identification to be the basis of safe work,
Number of sites
and therefore applies the STOP principle (Substitution, TechCoverage of sites under ISO scope in %220
nical measures, Organizational measures, Personal protective
90
220
measures) to all risk and incident investigations. Sika compa200
nies are required to regularly assess hazards and analyze risks
75
200
within their premises and operations, and to define corrective
180
and preventive measures accordingly. Each Sika site conducts
60
180
adequate risk assessment within the workplace. These are led by
160
EHS professionals and serve to give a comprehensive and valid
45
160
judgment regarding the protection level of occupational health
140
33%
28%
and safety. Risk analyses are reviewed when new information
30
140
26%
becomes available, e.g., new legal requirements, changes to
120
15
120
systems, equipment, raw material, incidents, accidents, nearmisses, etc.
100
2021

2022

2023

1	Considered under ISO scope are: headquarters, plants, warehouses, and technology centers. Sales offices, administrative offices, training centers are excluded asthese activities do not fall under the scope of respective ISO standards.

SIKA SUSTAINABILITY REPORT 2023
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It is the responsibility of all employees to ensure that all accidents or incidents, as well as near misses, are promptly reported
to line management to ensure timely investigation and corrective
action. All incidents that happen within Sika entities and premises and that involve Sika employees as well as contractors andvisitors are included in the scope. To ensure prompt awarenessof management, incidents with high or potentially high severity(including all accidents resulting in lost time) must be reported
within 24 hours through a central notification system. Investigation and root cause analysis are significant drivers of continuous
improvement in Sika health and safety performance. It is ensured
that each incident is investigated, that a root cause analysis isperformed, and that lessons learned are shared across the business for assessment and implementation of risk mitigation
measures. Since 2023, this process has been fully supported by
the Global EHS Incident Management tool, which was rolled out
during 2022. The tool enables Sika employees to report, manage,
analyze, and share EHS observations, near misses, and incidents.
The tool has been fully operational since January 2023, and it isin use across all Sika entities and will also be rolled out to theacquired MBCC companies and further acquisitions in 2024.

OCCUPATIONAL HEALTH SERVICES AND WORKERS’HEALTH PROMOTION
The provision of occupational health services is under the responsibility of local management teams in accordance with the Sikainternal Safety Manual and Sika “Life-Saving Rules” and might
differ depending on local regulations and healthcare systems,
for example:— In the US, a dedicated procedure has to be strictly followed in
the case of Emergency Medical Attention or Non-Emergency
Medical Attention, relying either on emergency assistance oron a medical hotline. If first aid is required, responding personnel must have received and be current with CPR 1/First
Aid/AED 2/Blood Borne Pathogen training for adults.
— In Brazil, Argentina, Mexico, a doctor is available on factory
sites to conduct consultations and occupational clinical assessments related to the occupational risk of each employee.
— In the Asia/Pacific region, an REBA (Rapid Entire Body Assessment) initiative for ergonomics risks has been deployed
to reduce injuries from manual handling.
— In all locations in Switzerland, internal first aiders are available for employees. They are the first contact for any healthrelated incident.

EMPLOYEES AND CONTRACTORS’ TRAININGSON OCCUPATIONAL HEALTH AND SAFETY
Promoting employee health goes beyond work-related incident
Occupational health and safety trainings are organized at vari- prevention. All local companies are responsible for promoting
ous levels within the company for Sika employees and external workers’ health beyond the workplace and for facilitating accessworkers:
to non-occupational medical and healthcare services depending— At Group level, 13 e-learning modules have been developed on the local context and according to local regulations. Acrossand deployed covering the Sika Life Saving Rules and the the globe, Sika promotes employees’ health via different chantwelve Sika EHS Minimum Requirements. All Sika employees nels, such as health campaigns, financial support to participate inare required to complete the Sika “Life-Saving Rules”, General sports activities, dedicated sessions delivered by mental health
Site Rules, Personal Protective Equipment training, and Rules professionals, lectures on stress release techniques, and first aid
for Visitors training. The remaining e-learnings are elective trainings, for example:
based on the activity of the employee and are included in the — In some countries (e.g., Brazil and Switzerland), HR departlocal curricula.
ments conduct an annual flu vaccination campaign for em— At local level, new employees receive an induction safety trainployees and their families.
ing that is embedded in the introductory program, focusing on — In the UK, a mental health hotline is available for all employees.
safety policies, guidelines, and procedures. Regular refresher — In Latin America, several initiatives promote health services
training sessions on health and safety are also performed.
and workers’ health: health communication campaigns (highApart from the mandatory health and safety induction trainblood pressure, heart care, cancer, use of prescription glasses,
ing sessions, local management teams are responsible foretc.), warm-up sessions to start the day with active breaks andsetting up and deploying specific additional health and safety
exercises for body posture to improve ergonomics, and healthy
trainings. Each country develops a program to ensure thatnutrition in canteens and for meeting catering.
employees are trained to these standards and that local legal
compliance is ensured.
— For contract workers, both the contracted party and Sika
must be fully aware of and prepared for potential hazards.
Contractors need to demonstrate a clear understanding of
the task being performed and have a system to understandand control the risks. Training needs assessment, content,
and effectiveness are completed at local level under EHS
Manager, HR, and General Manager responsibilities. The
same safety rules and trainings apply to contractors as for
employees.

1	Cardiopulmonary resuscitation
2		Automated External Defibrillator

SIKA SUSTAINABILITY REPORT 2023
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WORKERS PARTICIPATION, CONSULTATION, AND
The number of lost time accidents decreased compared to 2022
COMMUNICATION ON OCCUPATIONAL HEALTH AND SAFETY (–13.9%), leading to a lower Lost Time Accident (LTA) rate per
In addition to the Safety Campaign rollout, Sika ensures that 1,000 FTEs (5.4, –23.9% vs 2022). Analysis of lost time accidents
employees can always have direct contact with superiors and showed that the majority were related to slip, trips, falls, andmanagement on occupational health and safety issues. This al- manual handling, with the most prevalent injuries being sprains
lows employees to raise their concerns to improve health and and strains, cuts, and fractures. In addition to accidents, Sika also
safety at work and the management system. All local entities captures all near misses and encourages the reporting of safety
are responsible for organizing formal joint management-worker observations for action and follow-up.
health and safety meetings on a regular basis. In addition, employees participate in the analysis of errors, accidents, and other WORK-RELATED INCIDENTS OF SIKA EMPLOYEES 1
events if they wish or can contribute.
2021
2022 22023
For example:— All employees are encouraged to raise safety observations in Fatalities (No.)
001
the global incident management tool and a program has been Lost Time Accidents (No.) 3
256
209
180
launched to extend system access down to the plant worker
Days lost due to Lost Timelevel.
4,919
5,716
4,849
— In North America, the Incident Review Committee meets Accidents (No.)
monthly to discuss lost time accidents and significant near Average days lost per Lost Time
19.2
27.3
26.9
misses. A statement from the injured worker is generally col- Accident (No.)
lected prior to the incident review meeting. The supervisor or LTA per 1,000 FTEs (Rate)
9.2
7.1
5.4
the Local EHS Manager has the responsibility to present the LTIFR per 200,000 hours (Rate) 4
0.92
0.70
0.53
facts to the rest of the team for discussion and corrective
Recordable injuries (No.)
–
361
335
actions. The Operations Leadership Team meets monthly and
5
–
1.22
0.98
discusses health and safety as the first item on the agenda, TRIR per 200,000 hours (Rate)and the Steering Team meets quarterly and discusses safety Occupational illnesses (No.)
101222
as the first item on the agenda.
OIFR per 200,000 hours (Rate) 6
0.04
0.04
0.06
— In Latin America, the “Big Brother – Small Brother” scheme
consisting of mutual support between countries in the EHS
1	Apprentices and interns are excluded from FTEs and worked hours used for thefield has been strengthened.
calculation of LTAs per 1,000 FTEs, LTIFR, OIFR, and TRIR.
— In the Asia/Pacific region, factories have installed EHS corners
2	2022 figures related to LTAs, days lost due to LTAs and related KPIs have been
and a visual performance management board, which commurevised upwards to take account of the incorrect classification of three incidents
nicates regular information on safety issues and ­EHS-related
identified after publication.
updates. At such corners, workers are also invited to provide 3	Lost Time Accident is an accident which results in one or more lost days, notincluding the day of the accident.
inputs and suggestions on EHS improvements and protec4	
Lost Time Injury Frequency Rate.
tion measures. Non-managerial representatives are invited tocontribute to the local EHS Committee. In addition, a Safety 5	Total Recordable Injury Rate.
Day is conducted each year in September in every entity in 6	Occupational Illness Frequency Rate.
the region. The slogan for 2023 was “Act Safely Beyond the
Expected”. All employees are encouraged to participate and to
give suggestions to improve safety. A target “Everyone reports WORK-RELATED INCIDENTS OF CONTRACTORSat least one EHS event” was set and is monitored monthly.
2021
2022 1
2023— In the EMEA region, employees participate in the preventive in numbers
program as event reporters and report on near misses and Fatalities000
observations. Furthermore, through hazard hunting groups, Lost Time Accidents
30
27
19
employees and managers conduct safety walks together.
1	2022 figures related to LTAs of contractors have been revised upwards to take
EMPLOYEE WORK-RELATED INJURIES
account of the incorrect classification of one incident identified after publication.
We are deeply sorry to report that one employee lost their life
while working for Sika in 2023. The fatality occurred due to themechanical failure of a goods elevator during regular production Sika places equal importance on the health, safety, and welloperations in India. As a result of the incident and investigation, being of contractors as on Sika employees. In 2023, no workthe concerned elevator is being replaced, and all elevators in related fatalities of Sika contractors occurred. The number of
the Sika manufacturing network were checked for compliance contractors’ lost time accidents decreased by –29.6% comparedwith code and maintenance schedule and results. Corrective ac- to 2022. Implementation of Group-wide minimum requirements
tions were taken where necessary. For each serious incident or for on-site contractors’ management continued to contribute toaccident with lost time, a root cause investigation is conducted, this improvement.
and corrective and preventive actions are defined. An internalreport summarizing circumstances, causes, and lessons learned
is circulated across the Group for follow-up and action to prevent
similar events.

SIKA SUSTAINABILITY REPORT 2023
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OCCUPATIONAL ILLNESSESIn 2023, 22 occupational illnesses were reported for Sika employees, an increase by ten cases compared to 2022, as reflected in
the Occupational Illness Frequency Rate development. The mostcommon causes were related to musculoskeletal disorders, witha spate of cases occuring in Mexico, where a high level of manual
handling led to occupational illnesses. An automated palletizer
was implemented as a preventive measure. In all cases, employees were supported by local Human Resources and Health and
Safety functions.
CUSTOMER HEALTH AND SAFETY
Customer health and safety is crucial for Sika and is factored into
product development work (formulation work, system design,etc.) where product characteristics are determined. Moreover,Sika ensures that its customers are fully aware of handlingrequirements so that they can work safely. For this reason,customers and product users can attend application training
sessions to learn the proper use of the products. For more information on how Sika guarantees customer health and safety
through product safety, please see the “Products and Customers” chapter, “Product Safety, Quality, and Reliability” section on
p.119 of the Sustainability Report 2023.

SIKA SUSTAINABILITY REPORT 2023
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BUSINESS ETHICS AND INTEGRITYGRI 2-16

GRI 2-25

GRI 2-26

GRI 3-3

GRI 205-1

GRI 205-2

GRI 205-3

GRI 206-1

GRI 406-1

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Business integrity is at the core of Sika’s corporate culture. During 2023, Corporate Compliance audited 14 selected entities­ ccordingly, Sika enjoys an excellent reputation in the market. following a risk-based approach. To strengthen the “Detect” pillar,
A
Stakeholders all around the globe know Sika as a reliable and Corporate Compliance will continue the Compliance audit program
highly ethical partner. The company believes that sustainable and in 2024. To assure proper records management and follow-up, a
successful business performance is a result of acting in compli- Group-wide audit tool will be used in coordination with other assurance with laws and regulations. Sika operates a Group-wide, cul- ance functions. Compliance audits focus on four specific risk areas:turally well-accepted Compliance Management System, covering 1) Ethical leadership and human rights, 2) Anti-bribery & corruption,
the main pillars of Prevent, Detect, and Respond & Adjust. The 3) Anti-trust & fair competition, and 4) Third party risks includingGroup pursues a holistic approach to compliance and engages sanctions. The program enhanced compliance-related risks awarethe whole organization through all hierarchies, functions, and ness, collaboration between the Regions and Corporate Compligeographical areas. During 2023, major compliance initiatives ance functions as well as the collaboration between Compliance
took place, including:and other insurance functions, such as Internal Audit, Legal, etc.
— Sika Code of Conduct (CoC) awareness campaign of the revised Code of Conduct.
COMMUNICATION OF CRITICAL CONCERNS, OPEN DOOR
— Opening of the Sika Trust Line, an online reporting platform, POLICY, AND SIKA TRUST LINE
to external stakeholders.
Sika promotes transparency and a speak-up culture around the— Onboarding of acquired companies (incl. MBCC) on Sika’s Com- world. The company encourages everyone to speak up openly
pliance Management System.
about potential concerns or wrongdoings. Sika also grants ­every— Compliance trainings across the organization with a focus on employee who speaks up in good faith protection against releadership.
taliation. Concerns that can be reported include any violation of— Compliance audits in various countries.
the Sika CoC and cover various aspects such as bribery; unfair
competition; fraud (including theft, embezzlement, conﬂict of
COMPLIANCE MANAGEMENT SYSTEM, GLOBAL
interests, etc.); environment, health and safety, quality or trade
ORGANIZATION, AND ASSESSMENTS
law violations; abusive labor or employment practices (including
Sika’s Compliance Management System rests on a life cycle violations of human and labor rights, sexual harassment, disof three closely interrelated core activities: Prevent – Detect – crimination, harassment, retaliation, etc.); or breach/misuse of­Respond & Adjust. It is administered by a matrix organization conﬁdential information (including violation of privacy protection
under the leadership of the Head Human Resources, Legal & Com- laws) as well as conflict minerals.
pliance and enables synergies on trainings and investigations. The
Corporate Compliance team consists of dedicated resources, who Sika has established various channels for raising concerns:
coordinate the Group-wide compliance initiatives. Depending on — Open door policy: The company promotes a speak-up culture
the compliance topic concerned, the Corporate Compliance teamthat allows every employee to report any wrongdoing to his
is supported by the Regional HR Heads, Legal, or Controlling emor her superior at local level, a local legal and/or complianceployees who act as part-time Compliance Oﬃcers. Together they
team member, or to management on corporate level.
represent Sika’s cross-functional Global Compliance Organization, — Sika Trust Line: This is an externally hosted web-based platwhich aims inter alia at preventing incidents of wrongdoings
form system that ensures safe and confidential reporting,(fraud, bribery, and unfair competition etc.) by means of implewith the option for anonymity. This platform is available
menting targeted policies, trainings, audits, investigations, as
globally for all employees and was opened to third parties
well as disciplinary and improvement measures. A separate team(customers, suppliers, distributors, and other stakeholders)
ensures compliance with data protection and privacy regulations.
in November 2023 (testing phase), to go live in January 2024.
Where required by local law, they are supported by a designated — Alternative channels: Concerns may also be sent by e-mail tolocal Data Protection Manager. For more information on data proCorporate Compliance ( • compliance@ch.sika.com), altertection, please see the “­Digitalization and IT” chapter on p.134 ofnatively via post. In selected geographic locations, and often
the Sustainability Report 2023.
based on local requirements, there may be additional independent points of contact to liaise on compliance concerns; thismay include workers council representatives, or third parties
such as professional ombudspeople or external legal counsel.

SIKA SUSTAINABILITY REPORT 2023
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All reports received are managed by the Group Compliance Organization under the supervision of the Corporate Complianceteam. Each member must ensure impartial actions, particularly
by being independent and not bound by instructions. The Group
Compliance Organization is specially trained and obligated tomaintain confidentiality.
Concerns raised are categorized in three “priority levels”, suchas ­Priority 1 (P1), Priority 2 (P2), or Priority 3 (P3) depending on
their severity.

Employees are the biggest source of information and of raisingconcerns. For the year under review, about half of the overall
reports received came directly through the Sika Trust Line; theother half originated from audits, assessments, and management. In 2023, various reports were raised by third parties,
such as former employees, resellers, as well as vendors. Theseamounted to about 10% of the overall reports received.
Out of 73 reports received, 68 cases were investigated (as some
reports are related to the same matter), including cases andconcerns relating to conflict of interest, harassment, and EHS.

In 2023, the annual “­Compliance Confirmation” developed into COMPLIANCE INVESTIGATIONS
an internal digitalized questionnaire named “­ESG Confirmation”. The initial responsibility for managing reported incidents of unThis ESG Confirmation is sent to all General Managers (GMs) by ethical or unlawful behavior lies with those Sika employees/manCorporate Compliance once per year to confirm their commitment agers who observe the wrongdoing or receive the initial report.
to Sika’s core compliance policies and manuals regarding funda- Based on a defined escalation process, these initial recipientsmental environmental, anti-corruption, fair competition, labor are required to handle the complaints either locally or escalate
laws, and human rights ,and that they have provided adequate them to Corporate Compliance. If escalated, Corporate Compliinformation and training concerning these topics to their staﬀ 1. ance decides a) whether to launch an investigation, and b) who
should take the lead.
Internal audits as well as compliance assessments may also un­cover possible or actual misconduct or violations of Sika policies, In 2023, Corporate Compliance received 73 reports:
as well as contribute to the identification of improvement oppor­ — 47 reports of misconduct could be confirmed/substantiated.
tunities to further strengthen the Sika Compliance Management — 17 reports could not be substantiated.
System. Through the open door approach of raising and as far — Nine reports are still under investigation at the publication ofas possible clearing concerns, local, area, regional, or functional
this report.
management are also making their strong contributions.
The 2023 compliance investigations analysis allows for the folCOMPLIANCE COMPLAINTS WITH HIGH PRIORITY
lowing conclusions:(P1, P2) RECEIVED AND SUBSTANTIATED— Most investigations centered on either people behavioralrelated topics or fraudulent behavior.
in numbers
2021
2022
2023
— Twelve reports were submitted anonymously, all via the Sika
Trust Line.
Reports received
63
48
73
—
There were no government investigations nor any penalties
Reports resulting in
againstSika entities or employees anywhere in the world­investigations
50
47
68
concerning alleged corruption or bribery. Six internal investiSubstantiated reports
33
22
47
gations focused on potential cases of bribery. In one instance,
Complaints leading to
the allegation was conﬁrmed. To the extent that the involved
disciplinary measures 1
23
2335
employee was still an employee of Sika, the employee wasdismissed with immediate eﬀect.
Thereof cases with— The increased reports were the result of the ongoing strong
dismissals/voluntary
focus on compliance by management, and a zero tolerance
resignations
14
11
31
approachon substantiated cases.
Thereof cases with only
warning letters

9

11

14

Thereof assignments of
new roles

011

1 Not all identified violations lead to disciplinary measures (for instance, insome cases, the employee responsible for the violation may already have left
the company).

MBCC INTEGRATIONIn support of global post-merger integration activities during2023, the compliance team undertook or supported various activities. An online-based information platform was made available
to all new colleagues from MBCC Group on Day 1 of joining Sika.
This included general organizational information on Sika, Values
and Principles, CoC, and other key policy reference documents,
as well as an overview of the Sika reporting channels to enable
the raising of any concerns. Furthermore, all new colleagues
from MBCC Group globally were enrolled into the CoC awarenesscampaign. Just like Sika employees, they have full access to theSika Trust Line, where all potential wrongdoings may be reported.

1 The ESG Confirmation does not cover MBCC legal entities for 2023 as the acquisition was closed during the fiscal year.
SIKA SUSTAINABILITY REPORT 2023
People60

AWARENESS CAMPAIGN ON THE
REVISED CODE OF CONDUCTIn 2023, Sika rolled out the revised Code of Conduct which
underscored the company’s strong commitment to sustainable development, including human rights, l­abor
standards, and environmental protection. In addition,
the revised Code now reflects all recent changes of Sikainternal policies including the Sika Trust Policy, Supplier
Code of Conduct, Gift & Entertainment Policy, and Global
Privacy Policy.
This campaign aimed at fostering integrity and transparency, raising awareness on risks and misconduct suchas fraud, corruption, or discrimination. It encompassed
e-learning modules for employees with e-mail addresses
and in-person/classroom training sessions for those
without e-mail access. After closing the acquisition of
MBCC Group in May 2023, Sika extended invitations andenrolled all new colleagues in the relevant training. In
Sika, the campaign achieved a completion rate of 89%,
whereas the training in MBCC is ongoing as part of the
post-merger integration activities.

ANTI-CORRUPTION
Corruption exists worldwide, causing economic damage andcontributing to an unfavorable business environment by distorting market mechanisms and increasing the cost of doing
business. Sika supports the Swiss chapter of • Transparency
International (TI) through its membership, and participation in
the TI Switzerland compliance practitioners’ circle.

FAIR COMPETITION
To prevent anti-competitive behavior, Sika not only prohibits such
behavior in its internal policies, but also runs annual trainings
with risk-exposed employees, reminding them not to share sensitive market information with competitors. The risk of abusing amarket dominant position is negligible because Sika operates invery fragmented markets and does not hold a dominant position.
On an annual basis, General Managers are asked to conﬁrm thatno government action was taken against their entities for anticompetitive behavior. As in previous years, General Managers in
the ESG Confirmation issued such confirmation for the calendar
year 2023, with the exception of the investigation launched by theCompetition authorities in the EU countries, UK, Turkey, and the
USA into suspected antitrust irregularities in the area of additives
for concrete and cement. Sika supports the investigations, andit has been fully cooperating with the various authorities since
its start in October 2023. The fair operation of the markets isfundamental to the company, and the strong compliance culture
and the zero tolerance approach applies to all business areas.
ETHICAL LEADERSHIP PLEDGE
By signing the Compliance Commitment 2024–2025, all Senior
Managers at Sika have renewed their strong commitment to
uphold Sika’s Code of Conduct, its Values and Principles, and toalways act with integrity and respect. The Compliance Commitment is a pledge to promote ethical behavior and transparency
across the organization and to act as role models for all colleagues. Senior Managers commit to escalate serious violations
or well-founded compliance concerns, make sure that suspected
misconduct receives proper and timely follow-up, and that employees who report suspected misconduct in good faith are notsubject to retaliation. In addition, Senior Managers also commit
to provide their teams with adequate trainings. Senior Managers
are encouraged to seek the same kind of Compliance Commitment from each member of their management team.

GMs are required to immediately escalate suspicions or allegations of bribery to Corporate Compliance so matters may be re- THIRD PARTY DUE DILIGENCE AND MONITORING
viewed accordingly, and prompt actions taken.
In 2023, Sika tightened its third party due diligence and monitoring on a global level. For more information on Sika’s supply chain,
Even though Sika operates in countries that are highly ranked please see the “Procurement” chapter on p.127 of the Sustainon Transparency International’s Corruption Perceptions Index, its ability Report 2023.
exposure to corruption risks remains moderate to low: a) Sika’sbusiness partners are mostly private sector companies. Inter- TARGETED TRAINING INITIATIVES
action with the public sector, which is particularly susceptible Members of the Global Compliance Organization conduct anto corruption, is very limited; b) Sika is a specialty chemicals nual compliance trainings with speciﬁc risk/target groups. In
company, and therefore less exposed to corruption risks than the context of leadership development, Senior Managers, tocompanies belonging to the extractive, construction, transporta- gether with other employees, are invited regularly to participate
tion industries.
in Compliance trainings highlighting the importance of ethicalleadership at Sika to conduct business with integrity. During
Nonetheless, Sika employees in countries where corruption is 2023, specific trainings were included in the new General Managwidespread are exposed to the private sector risk of oﬀering ers Program, and in Global and Regional Leadership Programsor accepting kickbacks, inappropriate gifts, or entertainment. with interactive compliance workshop sessions. Multiple other
Sika is addressing the identiﬁed risks with targeted measures learning opportunities were provided on compliance leadershipsuch as a zero tolerance position against corruption anchored and were conducted in events across Sika through e-learning as
in its CoC, clearly formulated local Gift & Entertainment P­ olicies, well as in a classroom setting.
­anti-corruption trainings for employees, and regular reviews
and assessments of local practices related to third party
engagements.

SIKA SUSTAINABILITY REPORT 2023
People61

HUMAN RIGHTSGRI 3-3

GRI 406-1

GRI 408-1

GRI 409-1

GRI 407-1

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

As a signatory of the UN Global Compact and in accordance with INTERNAL HUMAN RIGHTS-RELATED AUDITS,
the Universal Declaration of Human Rights (UDHR) and the core ASSESSMENTS, AND INSPECTIONSConventions of the International Labor Organization (ILO), Sika General Managers are obliged to strictly adhere to internal hupromotes the protection of universally acknowledged human and man rights-related guidelines and applicable local laws, and tolabor rights. In its Code of Conduct, Supplier Code of Conduct, supervise their entities accordingly. They are also responsible
and the annual ESG Conﬁrmation, Sika has deﬁned minimum for taking preventive action and providing adequate training tohuman and labor rights standards to be implemented globally, their staﬀ. By means of audits and inspections, Sika ensures theincluding the prohibition of forced, slave, compulsory, or child protection of human and labor rights among its Group compalabor, the freedom of association, the prohibition of any form nies. On an annual basis, the Global Compliance Organization,of discrimination, and the guarantee of fair compensation and Corporate Legal, and Internal Audit are expected to run a total
equal opportunities for all employees. With hundreds of opera- of roughly 50 assessments to monitor the implementation oftions around the globe, Sika is active in many regions that rank Sika’s human and labor rights standards for its own workforce
high on human rights risk indices. Sika takes its responsibility and to implement improvement measures if necessary. In addiseriously to prevent human rights violations in its own operations tion, on-site EHS risk and quality audits are partially focused on
and to implement adequate measures to assure that no such protecting human rights and labor standards by ensuring theviolations occur in its supply chain.
implementation of minimum health and safety requirements.
Sika conducts about 15 such risk and quality audits each year.
ESG CONFIRMATION
In 2023, the above-mentioned functions performed a total of
General Managers and their local management team are obliged 46 human-rights-related audits, assessments, and inspections
to monitor the protection of human rights and labor standards across the globe.
within their entities and their areas of responsibility. Collected by
Corporate Compliance, Sika’s ESG Conﬁrmation asks all General SUPPLIER AUDITS AND ASSESSMENTSManagers to conﬁrm yearly that they have implemented and For more information on this topic, please see the “Procurement”
communicated the following principles to their staﬀ: the prohibi- chapter, “Responsible Procurement” section on p.129 of the Sustion of forced, slave, compulsory, or child labor; the freedom of tainability Report 2023.
association; the right to fair work hours and fair compensation,and the non-discrimination and equal opportunity principles.
CHILD LABOR
In line with Sika’s commitments to human rights, it categoriThe ESG Confirmation also aﬃrms that Sika promotes diversity, cally prohibits child labor. General Managers are obliged to strictly
inclusion, equal opportunities, and fair treatment in employment adhere to the prohibition. For 2023, 100% of General Managers
and occupation, and that Sika prohibits any form of discrimina- confirmed compliance with the norm. To date, no violation hastion 1. Further, the Confirmation underscores the right of work- ever been reported internally, whether via the Sika Trust Line orers – to the extent permitted by local laws – to establish and join other speak-up channels. To ensure that no child labor exists inlabor organizations of their own choosing without the need for its supply chain, Sika requires all of its tier 1 suppliers to sign itsprior authorization.
Supplier Code of Conduct (SCoC), which also contains a categorical child labor prohibition. Suppliers are expected to have systems
For 2023, 100% of Sika’s General Managers have conﬁrmed – by in place that ensure the proper implementation, training, andmeans of their annual ESG Conﬁrmation – that no violations of monitoring of the “no child labor” principle and all other fundafundamental human or labor rights have been identiﬁed.
mental human and labor rights among their own personnel aswell as the employees of their subcontractors and suppliers. Sika
regularly performs supplier audits and assessments to monitor
compliance with its SCoC.

1	Discrimination being defined as “the act and result of treating people unequally by imposing unequal burdens or denying beneﬁts rather than treating each person
fairly based on individual merit”.

SIKA SUSTAINABILITY REPORT 2023
People62

Since 2022, Sika has assessed the geographical network of its more information, please see the “Procurement” chapter on
own operations and of its tier 1 suppliers and the prevalence of p.127 of the Sustainability Report 2023.
child labor violations within those countries. This yearly evaluation is based on the UNICEF Index of Children’s Rights in the Through Sika’s Together for Sustainability (TfS) membership, over­Workplace 1. The analysis shows that, at operational level, Sika 1,000 Sika suppliers have been assessed and/or audited under
does not operate in countries with a high risk of child labor. How- the TfS framework at global level. In 2023, over 821 TfS assessever, the company is present in 68 countries with medium risk. As ments 3 with EcoVadis and 255 TfS and Sika audits were carried
far as Sika’s suppliers are concerned, there are tier 1 suppliers in out, including suppliers in the identified medium-risk countries.
61 medium-risk countries and no suppliers in high-risk countries. Such assessments provide the necessary transparency and visibility on the sustainability activities and contributions of Sika
In 2023, in line with the OECD Guidelines 2, Sika further estab- suppliers based on international standards, with a focus on childlished its Supply Chain Due Diligence and Risk Management labor where applicable.
Approach, integrating it in its Supplier Relationship Management (SRM) Process. The Supply Chain Due Diligence and Risk If the findings of an EcoVadis assessment or a TfS Audit highManagement Approach is made of five steps: pre-evaluation and light a suspicion or violation of the child labor prohibition, theESG risk assessment, qualification, evaluation, development, and organization investigates, applying a case-by-case approach.
termination where necessary. Sika utilizes a dedicated platform – In general, the first step is to initiate a Corrective Action Plan
­EcoVadis IQ – to establish Supplier Risk profiles, identifying (CAP). However, if the supplier does not implement or solve thepotential ESG risks associated to business partners including issue via the defined CAP, the case can be escalated at regional
criteria on the prevalence of child labor within the applicable procurement level, and Sika can decide to stop any business orindustries and countries of its supply chain. Potential high-risk cooperation with the supplier. This process is described in Sika’s
suppliers are prioritized for ESG assessments and audits. For internal Sustainable Procurement Guidelines and Policies.

CHILD LABOR RISK MAP

Sika operations
Sika operations + tier 1 suppliers

1	The methodology of the Atlas is guided by the United Nations Guiding Principles for Business and Human Rights (UNGPs) and Children’s Rights and Business Principles(CRBPs), which set out the expectations of companies in respect of human and children’s rights. Many of the more than 150 indicators are child-specific and some are
human rights indicators that affect children directly and indirectly in the contexts in which they and their families work and live. The Workplace Index measures the extent
to which countries eliminate child labor and provide decent work for young workers, parents, and caregivers. It evaluates five issues categories such as minimum ageof employment, categorical worst forms of child labor, hazardous work, decent work conditions, and maternity protection. The focus of Sika is on countries consideredat “enhanced” (medium risk) and “heightened” (high risk) risk of child labor. Sika analysis has been updated according to the latest Index update made in June 2023.
2  • OECD Due Diligence Guidance for Responsible Business Conduct
3	Can refer to assessments or re-assessments.

sika operations
sika operations + tier 1 suppliers

SIKA SUSTAINABILITY REPORT 2023
People63

LABOR MANAGEMENTGRI 2-7

GRI 2-8

GRI 2-30

GRI 3-3

GRI 401-1

GRI 401-2

GRI 401-3

GRI 402-1

GRI 405-2

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Sika’s success is only possible with committed employees who EMPLOYEES AND NET VALUE ADDED
Net added value (CHF thousands)
have the necessary specialist knowledge and share a common Number of employees
36000
purpose. Each day, more than 33,500 employees worldwide are 36,000
140highly dedicated to working for the company. Sika’s commit30000
ments reﬂect the following priorities and goals: Empowerment & 30,000
130­Respect; Sustainability & Integrity; Development & Training.
24000
24,000

121

118

116

120

MBCC ACQUISITION
18000
In 2023, Sika completed its largest-ever acquisition, incorpo- 18,000
110
rating 6,000 employees across more than 60 countries from
12000
MBCC Group. Prior to the acquisition’s closure, the aspired 12,000
100
combined culture between both companies revealed a strong
6000
90alignment of joint values. Celebrations in May and June 2023, in- 6,000
cluding the Sika Day event, facilitated employee integration and 0
2021
2022
2023
collaboration to build strong joint teams. New colleagues from
MBCC were onboarded onto Sika’s Values and Principles, Code of
Conduct, and Trust Policy (internal Speak-up Policy) immediately Together, the workforce generated a net added value ofafter closing the acquisition.
CHF 3,557 million in 2023 (previous year: CHF 3,321 million). This
corresponds to an annual average net added value per employee
Since the closing, country-specific integration plans have been of CHF 116,000 (previous year: CHF 121,000) ( • Table 04: Net
developed, focusing on defining the target organization and Added Value per Employee, in the “Key Performance Indicators”
potential synergies, and planning the brand transition strategy. section at the end of this chapter).
Regular checkpoints have been implemented and execution is
ongoing and being monitored to ensure milestones are met. Pulse In 2023, the EMEA region saw the highest increase in number ofcheck surveys are regularly being conducted to gauge employ- employees, growing by +28.4% compared to the previous year.
ees’ perceptions, risks, and support needs during the integration. MBCC added over 3,000 employees to the region ( • Table 05:
Through integration newsletters employees are also being up- Breakdown of ­Employees per Region, in the “Key Performance
dated on milestones, integration progress, and success stories Indicators” section at the end of this chapter).
to drive employee engagement and foster the sense of belonging.
BREAKDOWN OF EMPLOYEES PER REGION
in numbers
EMPLOYEES: THE KEY TO SUCCESS
36000
The outstanding engagement of Sika’s employees and their
36,000strong identiﬁcation with the company are key to success. Their
30000
great dedication and customer-focused work signiﬁcantly con- 30,000
tribute to the achievement of Sika’s strategic targets.
24000
24,000The number of employees increased by +21.1% during the year
18000
under review to 33,547 (previous year: 27,708) ( • Table 03: Total 18,000
Number of Employees, in the “Key Performance Indicators” sec12000
tion at the end of this chapter). Female employees in the Group 12,000
account for 24.3% of the total workforce (previous year: 24.0%).
6000
This is despite acquisitions having a negative effect on the share 6,000
of women in the workforce. MBCC had a female ratio of 22.7%. 0

2021

2022

EMEA

Americas

Global BusinessCorporate Services

2023
Asia/Pacific

SIKA SUSTAINABILITY REPORT 2023
People64

The age structure at Sika is broadly balanced with 11.9% of BREAKDOWN OF EMPLOYEES PER CONTRACT
employees under 30 years old (previous year: 12.8%), 62.1% be- in %100
tween 30–50 years old (previous year: 62.0%) and 26.0% over 50
100(previous year: 25.3%). To attract, engage, and promote more
80
women, the company provides numerous Trainee programs 80(e.g., Women in Sales initiative) that cater to the needs of young
60
women and support their professional development. With a de- 60
mographic that has 16.1% of female employees under 30 years
40
old, compared to 10.6% of males in the same age group, trainee 40
programs offer valuable opportunities for young women to ad20
vance in their careers and should contribute to a higher share 20
of women in the company and senior management over time
0
2021
2022
2023
( • Table 06: Breakdown of Employees per Age and per Gender,
in the “Key Performance Indicators” section at the end of thisPermanent
Fixed-termApprenticeship/internshipchapter). For more information on Sika’s approach to diversity,
please see the “Diversity and Inclusion” section on p.69 of the
Sustainability Report 2023.
40.1% of apprentices and interns are women, which is higher than
the average percentage of women at Sika and is providing opTo increase the number of employees under 30 years old, Sika’s portunities for women to gain valuable experience and training
employer branding strategy positions the company as the em- through apprenticeship programs. The percentage of fixed-termployer of choice for the next generations. As a project sponsor of workers in the Asia/Pacific region is higher due to higher rates
several universities, Sika engages in a lively dialogue with young in China, where the use of fixed-term contracts is a strategic
talents and oﬀers a wide range of internship and traineeship approach to navigate the complexities of local labor practices,
opportunities for a variety of diﬀerent academic backgrounds balancing workforce needs with operational requirements, alincluding chemistry, business studies, industrial engineering, ways in compliance with local legal requirements ( • Table 08:
chemical engineering, civil engineering, architecture, and mate- Distribution of Employees per Contract and per Region, in the
rial sciences.
“Key Performance Indicators” section at the end of this chapter).
BREAKDOWN OF EMPLOYEES PER AGE
36000
30000
24000
18000
12000
6000
0

BREAKDOWN OF EMPLOYEES PER CONTRACT AND
PER REGION IN 2023

in numbers

Permanent

Fixed-termApprenticeship/
internship

EMEA

13,644495

250

Americas

7,863

116

12

Asia/Pacific

5,912

2,285

1

Global Business

1,878

289

23

36,000in numbers

30,00024,00018,00012,000

Corporate Services
Group

6,000

719

24

36

30,016

3,209

322

EXTERNAL TEMPORARY WORKERS
Sika
is committed to limiting the use of external temporary< 30 years
30–50 years> 50 years
workers to specialized, non-core activities, during peak times,
or to an acceptable maximum percentage only, in accordanceSika is committed to oﬀering long-term prospects to its em- with applicable national labor laws. Where external temporary
ployees within the company and supports internal promotions. working arrangements are used, Sika takes adequate measures
89.5% of employees (89.9% of men and 88.0% of women) have to reduce possible negative eﬀects of such arrangements.
permanent employment contracts (previous year: 88.6%), ensuring that the workforce has the stability and security it needs to External temporary workers engaged through employment agenthrive ( • Table 07: Breakdown of Employees per Contract and cies and service providers accounted for 9.1% of Sika’s total workper Gender, in the “Key Performance Indicators” section at the force by the end of the year (previous year: 8.3%)1. These external
end of this chapter).
temporary workers are not Sika employees, but ­under contract
with employment agencies/service providers. The number ofexternal temporary workers varies depending on the seasonality of the business in the individual Sika companies. The work
performed by these external temporary workers is mainly related
2021

2022

2023

1 Based on FTEs.

SIKA SUSTAINABILITY REPORT 2023
People65

to manufacturing, warehousing, and logistics. The ­number ofexternal temporary workers ﬂuctuated between 8.1% and 9.1%
throughout 2023.

Sika hired 4,083 new employees in 2023 (4,137 in 2022) ( • Table 09: Group Recruitment Rate per Gender, in the “Key Performance Indicators” section at the end of this chapter). In addition, 6,000 new employees joined Sika with the acquisition of
MBCC Group.

COLLECTIVE BARGAINING AGREEMENTS AND
TRADE UNIONS
Sika operates in 103 countries with both small and large subsidiar- GROUP RECRUITEMENT RATE 1
ies. In many of the smaller companies, the number of employees in numbers
5000
is low and no collective bargaining agreements exist. However, in 5,000
many big countries, e.g., USA, Germany, France, etc., collective
4000
bargaining agreements for workers are the rule, and most work- 4,000
ers at these locations are covered. In 2023, more than 37% of
3000
the total workforce was covered either by trade unions or work 3,000
councils (2022: 33%), while roughly 36% of the total workforce2000
was bound by collective bargaining agreements (2022: 43%) 1.
2,000
13.9%

Recruitment rate in %
50
40
30

15.1%

13.3%

20

1000
EXPERIENCING GROWTH OPPORTUNITIES ALL
101,000
AROUND THE WORLD
0
2021
2022
2023
Sika is growing fast and can oﬀer employees adaptable career
paths. With its flexible and nurturing culture, the company offers
Male recruitments
Female recruitments
a vast array of individual career opportunities. Sika thus encourages employees to enrich their experiences and accelerate their 1	The recruitment rate is calculated as follows: number of recruitments/((headcount at the beginning of the year + headcount at the end of the year)/2).
growth through working abroad for other Sika companies, offeringinternational career opportunities. Internal candidates are given
preference for job openings. Sika is proud to employ individuals 29.0% of new employees are women, which is slightly lower than
who remain with the company for a long time and contribute with in 2022 (29.5%) but still above the current percentage of women
their knowledge and experience over several years. The company in the workforce. The recruitment rate for the Group decreased
has fully embraced digital communications channels to connect from 15.1% in 2022 to 13.3% in 2023. The female ratio decreased
with younger generations and enhance its reputation as a top to 16.0% (18.9% in 2022) and the male ratio decreased to 12.5%
employer. Sika recognizes the importance of exploring the poten- (13.9% in 2022). In 2023, recruitment rates in all regions experitial of new technologies and embracing them together with the enced a decline due to a significant influx of employees throughworkforce. Through digital enablement Sika encourages the stra- acquisitions, resulting in reduced demand for external hires
tegic use of technology and digital tools, empowering employees ( • Table 10: Breakdown of Recruitments per Region and per
and teams to work more efficiently, effectively, and innovatively. Gender, in the “Key Performance Indicators” section at the end
The external recruitment strategy is aimed at hiring and devel- of this chapter).
oping young talents, improving gender balance, and attracting
more candidates from emerging economies. Sika also invests in In 2023, it was observed that 35.3% of the newly joining emupskilling and reskilling of long-term employees to improve their ployees were under the age of 30, 54.8% were between the ages
knowledge and ensure their continuous employability.
of 30 – 50, and 9.9% were over the age of 50. Sika analyzes therecruitment rate per age category to ensure the achievement of
NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER
its diversity targets, and a balanced recruitment of talents fromSika monitors the turnover of employees including newly hired all age categories ( • Table 11: B­ reakdown of Recruitment Rateones in real time using targeted dashboards. Corporate and Local per Age Category in 2023, in the “Key Performance Indicators”
HR Departments regularly analyze reports based on diﬀerent section at the end of this chapter).
dimensions such as “gender” and “age” and take action to ensure
a balanced workforce.
BREAKDOWN OF RECRUITMENT RATE PER REGION
In addition, the HR organization has made further improvements
in its reporting capabilities to generate meaningful insights thatwill allow Sika to attract, engage, retain, and promote employees. The dashboards are continuously updated to reflect the most­relevant Key Performance Indicators to the business and help
drive the strategic agenda. Current dashboards include analysis
on headcount development, fluctuation, age, and gender distribution. As an example, the analysis on gender reveals areas where
there may be under-representation of certain groups, highlighting
the need for targeted recruitment efforts to increase diversity.

in %2021 1

2022

2023

EMEA

11.2

10.9

10.6

Americas

16.6

22.0

16.3

Asia/Pacific

16.3

14.6

13.6

Global Business

14.2

18.3

15.8

Corporate Services

9.8

15.3

21.0

1	2021 recruitment rate at regional level was restated due to a miscalculation.

1 Based on the data collected through the ESG Confirmation.

SIKA SUSTAINABILITY REPORT 2023
People66

Sika invests in the development of its managers who demon- — A global exit interview process, introduced in 2023, to gather
strate the leadership skills and competencies to drive superior
feedback from departing employees, identify areas of imperformance. In 2023, Sika promoted 802 employees into higher
provement, and develop retention strategies.
management positions (previous year: 399), resulting in an in- — A reinforced performance debrief dialogue process, which
ternal promotion rate of 2.4% (previous year: 1.4%) ( • Table 12:
allows continuous feedback as well as development and skill
Internal Promotions, in the “Key Performance Indicators” secenhancement opportunities for employees.
tion at the end of this chapter). The big increase vis-à-vis 2022 is — Young Leadership programs are promoted to highlight growth
mainly explained by the establishment of the new Senior Managopportunities at Sika.
er layer, which resulted in promotions for around 300 employees.
BREAKDOWN OF TURNOVER RATE PER REGION
In terms of workforce turnover, Sika managed to maintain a
2021
2022
2023
relatively stable employee turnover rate. In 2023, the voluntary in %fluctuation rate amounts to 8.5% (9.3% in 2022), the overall fluc- EMEA
9.1
10.2
10.5
tuation rate amounts to 13.5% (13.6% in 2022). Women’s overall Americas
13.5
19.1
19.8
fluctuation was 13.9% (14.3% in 2022) and men’s overall fluctua13.0
13.4
12.5
tion was at 13.3% (13.4% in 2022). ( • Table 13: Group Turnover Asia/Pacific
11.1
17.4
13.7
Rate per Gender, in the “Key Performance Indicators” section at Global Businessthe end of this chapter).
Corporate Services
5.7
7.7
12.5
GROUP TURNOVER RATE 1
5000
4000
3000
2000
1000

Turnover rate in %in numbers
5,000

50

4,000

40

3,000

30

2,000

13.6%

11.1%

13.5%

10

1,000

0

2021
Male leavers

20

2022

2023

Female leavers

1 The employee turnover rate considers all departures: natural fluctuations,
voluntary leavers, and involuntary leavers. It is calculated as follows: all
departures/[(headcount at the beginning of the year + headcount at the endof the year]/2). Natural fluctuations refer to retirement or death for example.

The company has decided to adapt the organizational setup
from 2023 on and install a new senior management groupthat will increase the agility and dynamism of the organization.
Around 300 managers were nominated either as Regional Senior­Managers (RSM) or Corporate Senior Managers (CSM). They complement the Sika Senior Management (SSM) group. As current
and future leaders, they are actively shaping the developmentof the company, functioning as ambassadors for Sika’s culture
and values and being tasked with implementing the strategy
within the organization. Sharing knowledge fosters innovation
by bringing together different perspectives and broadening thehorizons of managers across the company.
In 2023, the percentage of part-time employees slightly increased
to 3.1% (previous year: 2.8%). 9.2% of women and 1.1% of men
were employed in a part-time position ( • Table 16: Breakdownof Employees per Employment Type (Full-time, Part-time) andper Gender, in the “Key Performance Indicators” section at theend of this chapter).

Considering only the voluntary ﬂuctuation rate, women wereat 9.5% (previous year: 10.3%) and men at 8.1% (previous year: BREAKDOWN OF EMPLOYEES PER EMPLOYMENT TYPE
9.0%) ( • Table 14: Breakdown of Turnover per Region and per in numbers
36000
Gender, in the “Key Performance Indicators” section at the endof 36,000
this chapter). Despite the decreased fluctuation rates, Sika con30000
tinues to emphasize the importance of people and culture topics 30,000
in the organization and will launch new HR initiatives , including
24000
a “People & Culture” campaign, to foster employee engagement, 24,000
retention, and a sense of belonging among its workforce.
18000
18,000Sika has a voluntary fluctuation rate among employees under
12000
the age of 30 of 19.1%, which is a total of 718 leavers in the year 12,0002023 ( • Table 15: Breakdown of Voluntary Turnover Rate per
6000
Age Category, in the “Key Performance Indicators” section at the 6,000
end of this chapter). Although this is in line with current market 0
trends, the company has implemented a range of initiatives toreduce attrition among the younger employees:
Full-time

2021

2022

2023

Part-time

SIKA SUSTAINABILITY REPORT 2023
People67

TEMPORARY OR PART-TIME EMPLOYEES’ BENEFITSAGAINST FULL-TIME EMPLOYEES’ BENEFITS
There are no intended diﬀerences between beneﬁts provided
to full-time employees and temporary or part-time employees,
although diﬀerences in individual cases cannot be excluded.
FLEXIBLE WORKING HOURS AND HOME OFFICE
Sika’s success stems from a collaborative work environment andpersonal relationships. Sika is a people company, and the Sikaculture is to be nurtured and lived every day. This is especiallyfostered through face-to-face formal and informal exchanges onsite. Sika allows flexible working arrangements (part-time andflextime) for a high percentage of the workforce; including workfrom home for suitable jobs in ­accordance with local labor law.
PARENTAL LEAVE
Local management teams in all countries worldwide enable Sika
to act with ﬂexibility and agility. The local legislation and cultural
background on parental leave vary across the organization. Sika
promotes a family-friendly job environment and is extending
parental leave beyond local laws for most of its employees inmany countries.

PAY EQUALITY
Sika is committed to pay equality and fairness in all countries
the company operates in. The company performs regular internal
analysis to ensure that employees are paid fairly and to address
any potential pay gap. In 2023, Sika analyzed the compensation of Sika Senior Managers and General Managers globally(168 ­senior executives)1. The results confirmed that Sika is fullycompliant with equal pay for men and women (insignificant deviation below 5% depending on function).
The company initiated a global rollout of standardized job gradesin 2023 that is planned to be finished by 2024. This constitutes avital step to enhance fairness, transparency, and gender equality.
This approach ensures uniform job evaluation criteria, provides
clear progression paths, and promotes pay equity.
The company performs regular internal analysis to ensure that
employees are paid fairly and to address any potential pay gap.
Sika completed the equal pay analysis in several countries such as:— Switzerland, as required by the Swiss Federal Act on Gender Equality introduced in 2020. The results of the analysis
showed that Sika is fully compliant with Swiss equal pay
standards.
— UK, as required by the Equality Act 2010, performs regular pay
audits and assessments to ensure that any gender pay gapsthat exist in the organization are addressed.
— France performed the analysis according to the “Index del’égalité professionelle”.
— USA followed the methodology used by the United States
Department of Labor’s Office of Federal Contract Compliance
Programs (OFCCP), which involves multiple regression analyses on groups of at least 30 employees.
— Peru, in line with law No. 30709, ensures equality and nondiscrimination between men and women by evaluating groupsof jobs based on the tasks involved, the necessary skills, andjob profiles.

MINIMUM NOTICE PERIOD REGARDING OPERATIONALCHANGES
Sika commits to transparency, fairness, and strict compliancewith local employment laws. Adhering to all applicable laws is
the first principle stated in Sika’s Code of Conduct, compliancewith which has been confirmed by all General Managers by meansof the 2023 ESG Confirmation. This includes compliance withlegal minimum notice periods. Local notice period policies alignwith local legal requirements to ensure employees receive ample
time to prepare for transitions and foster seamless handoversof responsibilities. In 2023, eleven operational changes with asubstantial impact on employees occurred. For example:— Regarding the divestment of the Chongquing factory in­Sichuan (China), five employment relationships had to beterminated. Employees were informed four months before ADHERENCE TO LOCAL MINIMUM WAGE AND RATIOS
the factory was closed.
OF STANDARD ENTRY LEVEL WAGES BY GENDER— Regarding the closure of the Samuprakarn factory (Thailand), All GMs confirmed in their 2023 ESG Confirmation that all emall impacted employees were given a 30-day notice.
ployees are paid above the local minimum wage. Sika does not— Regarding the closure of the MBCC factory in Hanoi (Vietnam), differentiate by gender when it comes to standard entry-level
three out of the four internal headcounts were transferred to wages.
Sika, one employee voluntarily left the company. Sika complied with the local legal minimum notice period of 45 days forpermanent employment contracts and 30 days for fixed-term
employment contracts.
— Regarding the closure of the Jackson factory (USA), employees
were offered positions in the warehouse on-site or given theoption to relocate to other Sika facilities. Four employees accepted the severance package.
— In Romans (France), Sika applied dismissal for economic
reasons. As required by local law, before giving notice, thecompany looked for possible redeployment within Sika France.
After giving notice, employees remained on notice for ninemonths, during which they were accompanied by an external
agency to help them find another job.

1	Excluding MBCC.

SIKA SUSTAINABILITY REPORT 2023
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DIVERSITY AND INCLUSIONGRI 3-3

GRI 202-2

GRI 405-2

GRI 406-1

GRI 405-1

POLICIES AND GUIDELINES•

SIKA’S FIRM COMMITMENT TO DIVERSITY
Sika’s global presence and proximity to customers makes it
extremely important to understand diverse cultures and shareexperience across national boundaries. A diverse and inclusive
workforce enables a wider talent pool, drives innovation, andenhances profitability and competitiveness. The company’s
ambition is to improve gender balance aiming towards equal
representation of women at all levels and a steady increase in theshare of women in the total workforce. At courses and seminars,
Sika managers are encouraged to give high priority to diversity
in team and project planning.

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

GENDER MIX
Sika is constantly working on increasing the percentage ofwomen in all regions and conducted many initiatives during theperiod under review. For the company, the quota of female employees slightly improved from 24.0% in 2022 to 24.3% in 2023.
Excluding acquisitions, the share of women in the workforce
increased organically by +0.7% points to 24.7%. The region withthe highest ratio of female employees is Corporate Services, with35.9% women in 2023 (35.3% in 2022) ( • Table 17: Breakdown of
Employees per Gender and per Region, in the “Key Performance
Indicators” section at the end of this chapter).

BREAKDOWN OF EMPLOYEES PER GENDER
More specifically, Sika is committed to:Female employees in %— Fight against discrimination based on race, religion, gender, in numbers
36000
nationality, disability, age, or any other discriminatory charac60
36,000teristic which is of high importance due to its global presence.
30000
This is also reflected in a diverse senior management team.
50
30,000— Provide equal opportunities for all its employees.
24000— Recruit and integrate people with disabilities through improv- 24,000
40
ing working conditions. Sika supports non-discriminatory
18000
practices in terms of employment, and practices equal op- 18,000
24.3% 30
24.0%
23.2%
portunities in the recruitment process and in the professional
12000
development of its employees.
20
12,000— Increase the percentage of women, particularly in sales and
6000
10
6,000
management positions.
To support this commitment, Sika established a Global Diversity
Steering Committee (GDSC) that presides over Diversity, Equity,and Inclusion (DEI) initiatives and sets global targets. On a global
level, three pillars have been identified to foster DEI: attract,
engage, and promote. The GDSC measures the effectivenessof the Diversity, Inclusion, and Equal Opportunity strategy andproposes adjustments. It focuses on three levels of actions: theindividual level, to challenge the conscious and unconscious­biases of both women and men; the company level, to provide
equal opportunities; and the society level, in order to be a rolemodel and contribute to changing mindsets. Discussions of the
GDSC cover critical topics such as Sika’s Speak-up Culture initiative, awareness raising for bias, and equity analysis to informcompany policies. Similar focus groups are operating at theregional and local level – supported for specific initiatives by aglobal working team.

0

2021
Male employees

2022

2023

Female employees

SIKA SUSTAINABILITY REPORT 2023
People69

In 2023, the percentage of women at Staﬀ level increased by+0.3% points to 24.6%; the percentage of women in Middle
Management decreased by –0.4% points to 22.8%. The numberof women in Company Management increased by +1.4% points
to 22.2% ( • Table 18: Breakdown of Employees per Gender andper Category, in the “Key Performance Indicators” section at theend of this chapter).
BREAKDOWN OF EMPLOYEES PER GENDER
AND PER CATEGORY
36000
30000
24000
18000
12000
6000

in numbers
36,00030,00024,00018,00012,000
6,000

0

M
Staff

2021

F

M

Middle Management

2022

F

M

2023

F

Company Management1

DIVERSITY OF SIKA SENIOR MANAGEMENT
The company believes that employee diversity is a major factor ofits success, especially among senior management. At courses andseminars, Sika managers are encouraged to give high priority todiversity in team and project planning. Sika counts 67 nationalities among its senior managers (previous year: 43). 64% of Sika
General Managers are from the country they manage. The regional split of Sika senior managers has remained stable over the last
three years. 36.8% of Sika senior managers are in countries thatbelong to the EMEA region. 20.2% belong to Corporate Services,
21.2% to Americas, 16.8% to Asia/Paciﬁc, and 5.0% to the Global
Business region ( • Table 20: Breakdown of Senior Managers
per Region, in the “Key Performance Indicators” section at theend of this chapter).
Sika has widened its management pool, further strengthening
the diversity of its senior management. In pursuit of improved
gender balance, progress has been made within Sika’s senior
management and general management teams. As of 2023,
17.1% of senior management roles are now held by women, an
increase of +4.4% points compared to 2022. Likewise, 11% ofgeneral management positions are currently occupied by women(7% in 2022), highlighting Sika’s commitment to fostering gender
diversity at all levels.

37+21+17520

BREAKDOWN OF SENIOR MANAGERS PER REGION 1
in %1 Both Sika Senior Managers and local Company Management Teams areincluded in this category.

CORPORATE SERVICES
20.2%

EMPLOYEES WITH A DISABILITY
Sika values diversity and inclusion and considers itself to be anequal opportunity employer. The company strives to promote an
inclusive work environment that enables people with disabilities
to be part of the workforce. Sika carefully observes any legal requirements that might exist in the different jurisdictions thecompany operates in.

GLOBAL BUSINESS
5.0%
ASIA/PACIFIC
16.8%

EMEA
36.8%

AMERICAS
21.2%

1 Corporate Services: including Group Management members.

DIVERSITY OF BOARD OF DIRECTORSAt the end of 2023, the Board of Directors consisted of eight
members – five men and three women. All eight members wereover 50 years old ( • Table 19: Board of Directors – Breakdown
per Gender and per Age, in the “Key Performance Indicators”­section at the end of this chapter).

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DIVERSITY INITIATIVES
Sika’s strategy is to attract, engage, and promote more women,
particularly in sales. Therefore, recruitment campaigns acrossvarious channels are increasingly targeting them and, as part of
the Women of Sika (WoS) campaign, an action plan with dedicated toolkits was developed for the organization.

of belonging for all employees at Sika. Sponsored by the EMEA
Executive Team, there is a six-month campaign through the firsthalf of 2024, led by Internal Communications, that will use online
trainings, Senior Manager exchanges, and communication campaigns, testimonials, and videos to underline the strategic importance that diversity and inclusion have for Sika’s business success.

As an example, Latin America has invested in creating pro- At Group level, improvements are measured through yearly Corgrams to support career and leadership development. In 2023, porate HR reporting which is executed to monitor data not only
22 ­women were taking part in a mentoring program to inspire on gender but also on age and nationality. For more information,and guide them in their professional life, and in the “Poderosa” please see the “People” chapter, “Labor Management” section
leadership program to develop their leadership skills.
on p.64 of the Sustainability Report 2023.
In North America, Sika has set up a Women of Sika (WoS) Committee, which is sponsored by the local Top Management and consistsof several dedicated sub-committees. Those sub-­committees focus on specific topics, e.g., communication, recruiting, networking, and training, and each have a dedicated team, defined goals,
and clearly outlined actions. In 2023, both the United States andCanada hosted a Women of Sika forum where women discussed
the different initiatives the WoS is working on and gave their
feedback.
In EMEA, Sika has committed to a regional Diversity & Inclusion
strategy with “Culture”, “Performance and Talent Management”,
and “Recruiting” as the strategic pillars. Each of these pillars has
different workstreams, including training for all HR departments
across the region on “Diversity Friendly Recruitment” to educate
HR colleagues on inclusive language and practices within the hiring process. For Talent Management, there is specific focus on
identifying and developing female talent across all functions of
the business to be able to meet the targets for gender mix. EMEA
is also working on an employee awareness campaign as part of
the “Culture” pillar. It will take all EMEA employees on a journey
to learn more about diversity, equity, and inclusion, unconscious
bias, and creating a safe environment at work where everyone
feels empowered to speak up and/or speak out, fostering a sense

WOMEN OF SIKA COMMITTEE (NORTH AMERICA)
QUARTERLY MEETINGWITH OPERATIONAL
COMMITTEESTRATEGIC BOARD / SPONSORSMONTHLY MEETINGOPERATIONAL COMMITTEECOMMUNICATION /AWARENESSWOMEN’S NETWORKRECRUITING PROCESSTRAINING

MEETING AS NEEDEDKPI / MONITORING

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HUMAN CAPITAL DEVELOPMENTGRI 3-3
GRI 404-3

GRI 404-1

GRI 404-2

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Even as a large, multinational company, Sika has maintained its — Targeted development with means of a comprehensive andagility, which allows the company to implement business opscalable development portfolio available to all levels of emportunities quickly. To ensure that this remains the case, employees, enabling knowledge sharing and developing skills forployee knowledge must keep up with current trends and market
the future.
demands. That is why Sika invests in its employees to promotebusiness resilience by improving their skills, knowledge, and TALENT DEVELOPMENT AND LEADERSHIP PROGRAMS
expertise as well as attracting diverse talents, in terms of age, Talent development is a strategic imperative to ensure a high pergender, and culture.
forming and sustainable organization. That is why Sika strives to:— Attract and retain best talents.
MEASURES TO ATTRACT, DEVELOP, AND RETAIN TALENT— Enable people growth and upskilling for the future.
The attraction, retention, and development of talent is key for — Drive employee commitment and engagement through confuture Sika growth prospects. Therefore, talent shortage istinuous learning and attractive growth opportunities.
deemed as one of the top risks for Sika in the Enterprise Risk — Sustain and reinforce Sika value-based culture and leverage
Management framework. Sika’s fast growth and the diversion strong leadership.
fication of the markets will demand numerous management
and technical talents, so highly targeted hiring and retention Talent development activities have been designed to identify
measures are very important to mitigate another risk: the loss and develop employees both in the areas of business acumenof the unique Sika culture. To mitigate such risks, the company and leadership competencies enhancement. This approach enimplements several measures which are reviewed and updated sures systematic employee succession planning in the respective
yearly. For more information, please see the “Risk Management organizations.
and TCFD Recommendations” chapter on p.22, and the “People”
chapter, “Labor Management” section on p.64 of the Sustain- Sika takes pride in a comprehensive leadership development
ability Report 2023.
portfolio at global, regional, and local level to boost the talentpipeline. The portfolio is constantly growing as the company
Sika’s core measures to attract, develop, and retain talent:needs to stay on top of the requirements of the business and— An alignment of people strategy with Sika business strat- adapt the offering to employees’ needs to succeed. The current
egy and people initiatives between Corporate and Regional offering includes:
Management (i.e., people engagement initiatives, succession — The Global Leadership Program (GLP), which is delivered withplanning, talent reviews, etc.).
the purpose to enhance the required capabilities portfolio to— HR marketing and branding initiatives such as the global emfill the senior level talent pipeline for business-critical key
ployer branding campaign called “Going Beyond. Together” topositions​. The program combines gaining knowledge of theemphasize the environment where employees have a meanmarket with a customer centric mindset; the leader learns
ingful impact in what they are doing, a safe place to work, andabout long-term transformational plans as well as strategic
a great team spirit.
adjustments to take advantage of short-term opportunities.
— New approach to performance management with the imple- — The General Manager Program (GMP), which is dedicated tomentation of the Performance Debrief Dialogue (PDD) process
newly appointed general managers and focuses on training
focusing on employees’ key achievements, aspirations, andand sharpening business operational skills to confidently headdevelopment needs.
and govern a Sika subsidiary. It is tailored specifically to Gen— Global initiatives on culture, people, and leadership such aseral Manager role needs.
Global Employee Survey, Leadership Commitment framework, — The Regional Leadership Program (RLP), which is designed toSika Day, and Women of Sika campaign.
enhance the required capabilities portfolio to fill large country,— Fostering international careers by offering attractive opporarea, or regional positions for the purposes of stocking thetunities to work abroad and supporting assignees with custalent pipeline for business-critical key positions​. Regional
tomized agreements based on the international assignment
leaders deepen their business acumen and leadership skills
framework and guidelines.
by understanding key financial figures, their active role inoptimizing business results, and how their leadership drives
engagement.

SIKA SUSTAINABILITY REPORT 2023
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— The Leadership Accelerator Program, which is dedicated to first DIGITAL LEARNING
time managers and middle management employees to expand Digitalization has been a major transformation driver, enhancing
managers’ leadership competencies and increase their indi- collaboration, innovation, and learning across the organization.
vidual and team performance. It is a complementary offering to Sika has used this momentum to implement a global Learning
the core talent development dedicated programs such as RLP. Management System, called “SikaLearn”, which went live in all— Young Leadership Programs 1, which are delivered to help Sika countries 2 in early 2023. As a blended learning platform, thisyoung employees to build the future perspective, engage, and interface simplifies and facilitates content sharing while creating
expose. It prepares the next generation of Sika leaders with in- a more intuitive and user-friendly learning experience. In 2023,
novative and accelerated development. Furthermore, it creates Sika expanded the online portfolio with 183 new ­e-learning
a robust leadership foundation for our future leaders’ success courses and 16 hybrid learning courses.
today and tomorrow and provides a strong sense of belonging
and engagement through a promising development journey.
In 2024, Sika will re-launch executive learning programs which
are tailored to Sika Senior Management including the Regional ­Senior Managers and Corporate Senior Managers. These­Executive D­ evelopment Programs (EDPs) are a part of continuous
learning journey and focus on the Sika Strategy 2028 implementation and leadership.
TRAININGS BEYOND TALENT AND LEADERSHIPPROGRAMS
Sika’s Learning and Development (L & D) function offers a myriadof skills-based programs supporting the continuous improvement of all employees. This paves the way to achieving an engaged workforce and fosters a high-performance culture.

PLANT WORKER PROJECTIn 2023, the “Plant Worker Project” was initiated to empower all plant and factory workers with a digital identity.
This initiative represents a fundamental step toward therealization of a digital future for all Sika employees. By
granting digital identities to employees in factories andwarehouses, barriers that had previously impeded theiraccess to the digital environment are eliminated. This
inclusion guarantees their active participation on thecompany’s communication channels, involvement in incident management, and convenient access to mandatorye-learning and training sessions.

The L & D team organizes a broad range of internal and external AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE
training programs based on the Group Management’s strate- With more than 33,500 employees globally, Sika considers traingic initiatives and collaborates closely with General Managers, ing and education to be an important instrument in developing,­Regional HR Managers, Area HR Managers, Country HR Manag- promoting, and retaining its workforce. The company is prouders, and other key business leaders to identify focus areas. Apart of its large share of long-serving employees and recognizes thefrom the talent management and leadership trainings portfolio, need to keep employees up to date in terms of their knowledge
the Sika Business School offers sales trainings, professional and skills. In 2023, each employee received on average 12.5 hours
skills trainings, and support to Sika academies in the areas of of training, a decrease of –6.6% compared to 2022. This was due
procurement, operations, and sustainability.
to MBCC Group acquisition which leads to diluted figures.
Future managers are trained at various levels, either through continuous training initiated by the respective national organizationor provided by the Sika Business School, Sika Academies, andexternal education partners. In 2023, Sika continued to cooperatewith various business schools and universities, where the company provided training for talented employees with the potential
to assume Senior Management positions.
Training activities for each Sika employee are determined basedon the evaluation by the line manager. A nomination to a youngor regional talent program is additionally validated by the area
and regional management team, whereas a nomination to a
Global Leadership Program (GLP) is further validated by theCEO. Furthermore, Sika encourages the external education of its
employees by providing sponsorships on a case-by-case basis.
All non-management functions are evaluated and managed bytheir line managers and HR to identify training and development
needs. As part of the PDD process, yearly performance evaluation
discussions integrate a systematic focus on employees’ aspirations, competencies, and development needs.

AVERAGE TRAINING HOURS PER EMPLOYEE 1
in numbers

2021

2022

2023

Hours of training per employee

11.1

13.4

12.5

1	Excluding apprenticeship, MBA, and PhD at educational institutions.

In the year under review, Sika spent a total of CHF 12.5 million(previous year: CHF 10.8 million) on employee development.
SPENDING ON EMPLOYEE DEVELOPMENT
in CHF mn

2021

2022

2023

Spending on employee
development

8.8

10.8

12.5

1 Programs’ names might differ across Sika regions due to regional requirements.
2 Excluding MBCC. However, a reduced version of SikaLearn has been made available to all MBCC employees within the first week after closing to facilitate onboardingon important topics, e.g. Sika’s Code of Conduct.
SIKA SUSTAINABILITY REPORT 2023
People73

EMPLOYEE PERFORMANCE REVIEW AND DEVELOPMENTAll Sika entities have a local performance evaluation system inplace, which includes a Management By Objectives (MBO) and
Employee Development discussion. Around 62% of Sika employees receive regular performance reviews ( • Table 21: Employee
Performance Reviews in the “Key Performance Indicators” section at the end of this chapter).
In 2023, Sika launched the performance management “Global
Performance Debrief Dialogue (PDD)”. This is to encourage meaningful debrief conversations between managers and employees
and integrate continuous feedback into daily business life. In
particular, the dialogue focuses on employee’s key achievements,
impactful contributions, highlights of performance of the past
year, and Sika’s desired performance behaviors (Leadership Commitment pillars). Until now, the initiative has involved around
7,000 employees across the whole organization. Most participants were at Staff level.
The rollout of the Global Performance Debrief Dialogue will continue and is planned in a staged approach. By the end of 2025,
the entire organization will be onboarded on this approach.

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COMMUNITY RELATIONSGRI 2-27
GRI 413-2

GRI 3-3

GRI 413-1

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

As a socially responsible company, Sika supports local communi- GOALS AND TARGETS
ties. Community engagement for Sika is the process of working Sika’s targets for 2023 were to complete 10,000 working days ofcollaboratively with neighborhoods to address issues aﬀecting volunteering work annually, run 50% more projects, and increase
the well-being of its residents. This engagement is the driver to the number of direct beneficiaries by 50% compared to 2019. For
bring social, environmental, and behavioral changes that will im- more information on community engagement targets and Sika’s
prove the lives of the communities and its members. This involves related performance, please see the “Sustainability at Sika” chappartnerships with NGOs and associations that help mobilize re- ter, “Sustainability Strategy 2019 –2023” section on p.44 of thesources and inﬂuence the prospects of those neighborhoods in Sustainability Report 2023.
a positive way. Sika deﬁnes “communities” as non-commercial
stakeholder groups of local companies, neighborhoods, educa- RESPONSIBILITIES
tional institutions bringing forward social activities and projects, The corporate teams of Corporate Communications and Innovaenvironmental programs, and the development of recovery tion & Sustainability, with the strategic involvement of the Global
programs.
HR organization, are responsible for developing and monitoring
the community engagement scheme. The regional and local line
Community engagement activities bring the following advan- management is responsible for implementing the scheme locally.
tages to Sika:
The patron of the “Sika Cares” program is the CEO; however, op— Working together improves communication and understand- erational responsibility is conducted by Sika subsidiaries on a local
ing of mutual points of view.
level and projects are managed on team level.
— Committing to social issues demonstrates Sika’s responsibility to society.
“SIKA CARES” ENGAGEMENT PROGRAM— Increasing awareness and understanding of Sika’s values and The “Sika Cares” community engagement program, which started
expertise locally.
in 2019, focuses on improving the quality of life of children, adults,— Supporting collaborative efforts to advance social and busi- and families in the local communities in which Sika operates
ness-related projects.
worldwide. Sika employees enjoy many intangible beneﬁts fromthis program, including greater connection with their communiIn turn, such projects have a positive impact on communities and ties, team building, and the satisfaction of trying to make thelocal citizens by:world a better place. The company aims to support local third— Helping underprivileged stakeholders gain greater control over parties to help people to develop themselves. With this program,their lives and improve their situation on a sustained basis.
Sika companies ensure that local community members have ac— Drawing on Sika knowledge leads to practical and effective cess to valued social settings and activities, that Sika staﬀ cansolutions.
contribute meaningfully to those activities through volunteer— Encouraging individuals to learn about issues in-depth ing work, and that functional capabilities are provided to enablethrough practical experience.
individuals to participate in their communities. To achieve this— Helping community members to develop capabilities that en- goal, cooperation with and support for existing and professionalable them to be an active part of society and to contribute to charity organizations is given priority. “Sika Cares” focuses on thethe community itself.
following thematic areas:— Education and vocational training: Investment in good eduCOMMITMENT
cation gives young and underprivileged people the mostSika is committed to building trust and creating value with its
important tool they need to lead an independent life. Sika
customers, communities, and society.
provides support on training and capacity building in termsof refurbishment and construction projects. The company
promotes quality education for orphans and vulnerable children or neighborhood-focused employability approaches. In
this way, Sika increases employment opportunities of sociallydisadvantaged people.

SIKA SUSTAINABILITY REPORT 2023
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— Buildings and infrastructure: The health and dynamism of REPORTING SYSTEM
communities also depends on the infrastructure in place for To facilitate the processing, communication, and reporting ofpeople and the environment. This is where Sika comes in with community engagement activities worldwide, a new tool wasits expertise and product solutions, providing housing and launched in 2023. It enables all Sika employees to share insights
accommodation for social NGOs, enabling, and optimizing on local projects and get inspired from activities taking place
health and safety infrastructures, or traﬃc/transport services in other countries. The tool is aligned with the Sika corporate
and facilities for the local communities.
reporting system and provides qualitative insights, KPI relevant— Water and climate protection: Sika employees support proj- data, and additional granularity to the previous reporting.
ects which link social causes with ecological interest: projects
raising awareness on climate change, community health and COMMUNITY ENGAGEMENT INDICATORS
safety, initiatives promoting the provision of drinking water
2021
2022
2023
in dry areas or technological development to stimulate theeconomic growth of local communities. Sika also seeks to pro- Community engagement
mote on-the-ground self-help. Supporting self-management projects (No.)
242
406
582
involves enabling and instructing people about their condition Volunteering days of employees
and care, and motivating them to care for themselves and to (Days) 1
1,392
2,595
7,953
expand their quality of life by capacity-building
Direct beneficiaries (No.)
44,18853,666 126,705— Promoting self-help can encompass a portfolio of information,techniques, and tools that help individuals access new know1	Some of the projects do not require any volunteering work from Sika employees
how and improve their situation in a sustainable way.
and therefore not all projects led to volunteering days. Starting from 2023,— Health and well-being: Healthy communities rely on camcommunity engagement guidelines have been strengthened. A minimum ofpaigns and solutions in support of health promotion and8 hours of volunteering work needs to take place to consider a project as
disease prevention across a wide range of dimensions. By“community engagement”.
recognizing and working to improve their impacts on healthand well-being among their own employees, across global
value chains, and within local communities, Sika aims to
SIKA DAY 2023 – FOCUS ON
help to foster and benefit from a more robust economy andmarketplace,a healthier, happier, and more productive work­COMMUNITY ENGAGEMENT
force, and more resilient supply chains and communities.
Under the motto “Caring for each other. Beyond the
expected”, the Sika Day helped to further build a caring
Community engagement guidelines are available for all Sikaculture in the organization. The Sika Day is an employeeemployees to provide clear guidance and ensure a common unoriented day to celebrate its people, the company, andderstanding of project management in this domain.
how they work together. Caring for people means also
caring for the communities they live in. This is a way of
For each project, Sika companies are required to put forward
giving back. All over the world, community engagement
speciﬁc aid applications and, together with local partners, suand social work projects brought together people frompervise the projects on site until completion. The company enSika on site as well as the new colleagues from MBCC.
deavors to provide intelligent support through the application
These cross-functional team activities included contribof company-speciﬁc expertise, voluntary work, and long-term
uting to renovating a school, helping people cope withcollaboration with partners. For more information, please visit
theirsometimes-difficult daily lives, or by preserving and•the corporate webpage Community Relations.
taking care of the environment by cleaning up a beachor a forest.
In 2023, community engagement activities took place in 89 countries. Sika sponsored 582 projects (previous year: 406 projects).
This equates to a year-on-year strong increase of 43.3%. In total,
Sika employees spent 7,953 days of volunteering work (previous
year: 2,595 days, +206.4%). 126,705 individuals were beneﬁtting
directly (previous year: 53,666, +136.1%). The increase in volunteering days was mainly due to the community-related activities that took place on the occasion of the Sika Day, and to therelaxation of COVID-19-related restrictions in many countries.
Additionally, the topic of “community engagement” underwent
heightened scrutiny throughout the entire company, prompting
Sika teams to increasingly leverage it as a means to assist others
and foster team bonding through shared experiences.

SIKA SUSTAINABILITY REPORT 2023
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OPERATIONS WITH SIGNIFICANT ACTUAL AND POTENTIAL
NEGATIVE IMPACTS ON LOCAL COMMUNITIESAs a socially responsible company, Sika collaborates with local
communities to address issues affecting their well-being. In 2023,
less than 5% of Sika’s General Managers indicated – by meansof their annual ESG Conﬁrmation – that they have received
complaints from local communities regarding Sika’s operations.
The very few complaints received were primarily related to noise,odors, and maintenance work. Most of them have been resolved1.
Sika fosters an ongoing dialogue with local communities, e.g.,through open door events or special phone numbers to contact
the local management.
When opening a new site, Sika follows defined steps to interact
with community stakeholders. The planning process focuses oncompliance with all laws and regulations, which required approvals
are in place, coordination with local fire departments, as well as
information and interaction with the neighboring community. The
steps of this process include early-stage contacts with local authorities regarding environmental, commercial, health and safety
aspects as well as information sessions for the local neighborhood.
Actions and initiatives are partly adapted to the local situation.

1	Sika is aware of the case in the Virrey del Pino Plant, Argentina. This plant was acquired by Sika from Parex in 2019. Sika takes the concerns of the neighborhood
seriously and fully cooperates with local authorities, including implementing voluntary improvements at the plant.

SIKA SUSTAINABILITY REPORT 2023
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PUBLIC POLICYGRI 3-3

GRI 415-1

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

The UN Sustainable Development Goal 17 stresses the need for
public-private partnerships. Companies are playing an increasingly active role in society to support sustainable growth andinnovation.
Sika contributes to positive global initiatives where it can, in linewith the company’s strategy and business objectives, to shapesustainable policy development. As a responsible corporate actor,
Sika facilitates open, honest, and transparent communication
with all stakeholders, including politicians, authorities, businessassociations, as well as non-government organizations, in a number of relevant policy areas including chemistry, climate change,energy, circular economy, and industrial, trade and innovation
policies.
POLITICAL CONTRIBUTIONS
According to its • Code of Conduct (CoC), Sika commits to ethical and sustainable operations and development in all businessactivities. One company rule prescribes that “using Sika funds
to support politicians, political candidates, or political parties is
prohibited. Donations to political campaigns supporting Sika’s
strategy or business activities need to be approved by GroupManagement”. In 2023, Sika did not give donations to politicalparties, politicians, or related organizations 1.
MEMBERSHIPS OF ASSOCIATIONS AND OTHER FORUMS
Sika’s engagement with associations and other platforms supports strategic alignment across the industry and provides anopportunity for exchange on perspectives and best practices.
For more information on memberships of associations, initiatives, and collaborations, please visit the corporate webpage• Partnerships and Collaborations.

1 Based on the data collected through the ESG Confirmation.

SIKA SUSTAINABILITY REPORT 2023
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KEY PERFORMANCE INDICATORSTABLE 1: ISO 45001 – OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM CERTIFICATION 1

•

2021

2022

2023

Sites certified ISO 45001 (No.)

147

196

206

Coverage of sites under ISO scope (%)

26

33

28

1	Considered under ISO scope are: headquarters, plants, warehouses, and technology centers. Sales offices, administrative offices, training centers are excluded asthese activities do not fall under the scope of respective ISO standards.

TABLE 2: ISO 9001 – QUALITY MANAGEMENT SYSTEM CERTIFICATION 1

•

2021

2022

2023

Sites certified ISO 9001 (No.)

345

361

422

Coverage of sites under ISO scope (%)

61

60

58

1	Considered under ISO scope are: headquarters, plants, warehouses, and technology centers. Sales offices, administrative offices, training centers are excluded asthese activities do not fall under the scope of respective ISO standards.

TABLE 03: TOTAL NUMBER OF EMPLOYEES•

in numbers

2021

2022

2023

Employees

27,05927,70833,547in CHF thousands

2021

2022

2023

Annual average – net added value per employee

118

121

116

2021

2022

2023

EMEA

11,243

11,206

14,389Americas

6,002

6,559

7,991

Asia/Pacific

6,997

7,056

8,198

Global Business

2,136

2,173

2,190

TABLE 04: NET ADDED VALUE PER EMPLOYEETABLE 05: BREAKDOWN OF EMPLOYEES PER REGION••

in numbers

Corporate Services

681

714

779

27,05927,70833,547in numbers

2021

2022

2023

<30 years

3,663

3,534

3,991

Female

–

1,128

1,309

Male

–

2,406

2,682

16,572

17,176

20,831Group

TABLE 06: BREAKDOWN OF EMPLOYEES PER AGE AND PER GENDER•

30–50 years
Female

–

4,218

5,194

Male

–

12,95815,637>50 years

6,824

6,998

8,725

Female

–

1,305

1,635

Male

–

5,693

7,090

SIKA SUSTAINABILITY REPORT 2023
People79TABLE 07: BREAKDOWN OF EMPLOYEES PER CONTRACT AND PER GENDER

•

in %

2021

2022

2023

Permanent

87.4

88.6

89.5

Female

–

23.5

23.9
76.1

Male

–

76.5

Fixed-term

11.9

10.6

9.6

Female

–

26.8

26.3
73.7

Male

–

73.2

0.7

0.8

0.9

Female

–

43.2

40.1

Male

–

56.8

59.9

Apprenticeship/internship

TABLE 08: DISTRIBUTION OF EMPLOYEES PER CONTRACT AND PER REGION
2021

2022

2023

Permanent

Temporary

Apprentices/interns

Permanent

Temporary

Apprentices/interns

3.1

1.4

94.8

3.5

1.7

•

Permanent

Temporary

Apprentices/interns

EMEA

95.0

3.8

1.2

95.5

Americas

95.2

4.7

0.1

98.1

1.8

0.1

98.4

1.5

0.1

Asia/Pacific

67.2

32.8

0.0

68.9

31.1

0.0

72.1

27.9

0.0

Global Business

89.0

10.1

0.9

87.1

11.9

1.0

85.8

13.2

1.0

Corporate Services

93.8

2.1

4.1

93.1

2.7

4.2

92.3

3.1

4.6

in %

TABLE 09: GROUP RECRUITMENT RATE PER GENDER

•

in %

2021

2022

2023

Recruitment rate

13.9

15.1

13.3

Female

16.0

18.9

16.0

Male

13.2

13.9

12.5

TABLE 10: BREAKDOWN OF RECRUITMENTS PER REGION AND PER GENDER•

2021
Recruitments(No.)

Recruitment
Rate (%)

F

M

F

M

EMEA

330

903

13.5

10.5

Americas

247

682

20.2

15.6

Asia/Pacific

259

816

15.7

16.5

Global Business

90

205

19.5

12.7

2022
Recruitments
(No.)
F

2023

Recruitment
Rate (%)

M

F

397

830

406

977

258
108

Recruitments(No.)

Recruitment
Rate (%)

M

F

M

F

M

15.4

9.6

426

932

14.0

9.6

28.4

20.1

303

885

17.8

15.9

768

14.9

14.5

272

763

14.8

13.2

286

21.4

17.3

115

230

21.5

14.0

Corporate Services

29

36

13.9

7.9

53

54

22.5

11.7

67

90

25.2

18.7

Group

955

2,642

16.0

13.2

1,222

2,915

18.9

13.9

1,183

2,900

16.0

12.5

TABLE 11: BREAKDOWN OF RECRUITMENT RATE PER AGE CATEGORY IN 2023 1•

Recruitments (No.)

Recruitment Rate (%)<30 years

1,438

38.2

30–50 years

2,236

11.8

>50 years

403

5.1

1	Since 2023, Sika added granularity to the reporting of recruitment related indicators. The breakdown of hirings is now available per age category from the global
HR system which covers 99.6% of all employees in 2023. 2021 and 2022 have not been restated accordingly.

SIKA SUSTAINABILITY REPORT 2023
People80

TABLE 12: INTERNAL PROMOTIONS

•

2021

2022

2023

Internal promotions to a higher management position (No.)

446

399

802

Internal promotions to a higher management position (%)

1.6

1.4

2.4

2021

2022

2023

TABLE 13: GROUP TURNOVER RATE PER GENDER

•

in %

Employee turnover rate

11.1

13.6

13.5

Female

10.6

14.3

13.9

Male

11.3

13.4

13.3

7.4

9.3

8.5

1

Employee voluntary turnover rate1	The employee turnover rate considers all departures: natural fluctuations, voluntary leavers, and involuntary leavers. It is calculated as follows: all departures/((headcount at the beginning of the year + headcount at the end of the year)/2). Natural fluctuations refer to retirement or death for example.

TABLE 14: BREAKDOWN OF TURNOVER PER REGION AND PER GENDER•

2021
Leavers
(No.)

2022

TurnoverRate (%)

Leavers
(No.)

2023

TurnoverRate (%)

Leavers(No.)

TurnoverRate (%)

F

M

F

M

F

M

F

M

F

M

F

M

EMEA

245

761

10.1

8.9

293

856

11.4

9.9

347

995

11.4

10.2

Americas

106

648

8.7

14.8

255

946

17.9

19.5

325

1,115

19.1

20.0

Asia/Pacific

218

638

13.2

12.9

269

676

15.6

12.8

236

719

12.8

12.4

Global Business

54

176

11.7

10.9

93

282

18.5

17.1

85

214

15.9

13.0

Corporate Services

10

28

4.8

6.2

18

36

7.6

7.8

38

55

14.3

11.4

Group

633

2,251

10.6

11.3

928

2,796

14.3

13.4

1,031

3,098

13.9

13.3

TABLE 15: BREAKDOWN OF VOLUNTARY TURNOVER RATE PER AGE CATEGORY 1•

Voluntary Leavers (No.)

Voluntary Turnover Rate (%)<30 years

718

19.1

30–50 years

1,554

8.2

>50 years

309

3.9

1	Since 2023, Sika added granularity to the reporting of turnover-related indicators. The breakdown of departures is now available per age category from the global
HR system which covered 99.6% of all employees in 2023. 2021 and 2022 have not been restated accordingly.

TABLE 16: BREAKDOWN OF EMPLOYEES PER EMPLOYMENT TYPE (FULL-TIME, PART-TIME) AND PER GENDER•

in numbers

2021

2022

2023

Full-time

26,272

26,92332,513

Female

–

6,100

7,391

Male

–

20,82325,122Part-time

787

785

1,034

Female

–

551

747

Male

–

234

287

SIKA SUSTAINABILITY REPORT 2023
People81

TABLE 17: BREAKDOWN OF EMPLOYEES PER GENDER AND PER REGION•

2021
in numbers

2022

2023

F

M

F

M

F

M

EMEA

2,509

8,734

2,637

8,569

3,462

10,927

Americas

1,338

4,664

1,519

5,040

1,886

6,105

Asia/Pacific

1,732

5,265

1,720

5,336

1,963

6,235

485

1,651

523

1,650

547

1,643

Global BusinessCorporate Services
Group

220

461

252

462

280

499

6,284

20,775

6,651

21,0578,138

25,409TABLE 18: BREAKDOWN OF EMPLOYEES PER GENDER AND PER CATEGORY•

2021
in numbers

2022

2023

F

M

F

M

F

M

5,180

16,715

5,439

16,933

6,739

20,607

Middle Management

870

3,096

983

3,252

1,113

3,761

Company Management 1

230

946

229

872

294

1,033

2

6

2

6

2

6

Staff

Thereof Group Management1	Sika Senior Managers and local Company Management Teams are included in this category.

TABLE 19: BOARD OF DIRECTORS – BREAKDOWN PER GENDER AND PER AGE•

in numbers

2021

2022

2023

Male

7

5

5

Female13330–50 years

0

0

0

>50 years

8

8

8

2021

2022

2023

TABLE 20: BREAKDOWN OF SENIOR MANAGERS PER REGION•

in numbers

EMEA

63

57

153

Americas

28

28

88

Asia/Pacific

34

27

70

Global Business

13

11

21

Corporate Services 1

36

35

84

2021

2022

2023

50

50

62

1	Including Group Management members.

TABLE 21: EMPLOYEE PERFORMANCE REVIEWS

•

in %

Employees with performance reviews

SIKA SUSTAINABILITY REPORT 2023
People82

PLANETSUMMARY & HIGHLIGHTSAMBITION

KEY FIGURES

Sika plays a key role helping its industry
achieve net zero. The company promotes efficient use of resources while
minimizing impacts on ecosystems.

GHG EMISSIONS INTENSITY(SCOPE 1 AND 2)

APPROACH
Sika contributes to sustainable development by offering sustainable solutions
for the construction and transportationindustries. Global sustainability trends
generate business opportunities.

in kg CO2eq per ton sold

15.7
–4.4%

Change vs 2022

WATER CONSUMPTION INTENSITY
in m3 per ton sold

HIGHLIGHTS
SBTi Targets Validation
Following the commitment in September 2022, Sika submitted its emissions
reduction targets in line with the latest
SBTi criteria in October 2023. The­validation process will take place in thefirst half of 2024.

0.21–12.2%

Change vs 2022

WASTE INTENSITY
in kg per ton sold

10.6
–2.5%

Change vs 2022

SIKA SUSTAINABILITY REPORT 2023
Planet83

MATERIAL TOPICS
ClimateChangeEnergyManagement

Water
Management

Waste
Management

Circular
EconomyBiodiversity andNatureAir
Emissions

Compliance

Risk and Crisis
Management

SDGs

SIKA SUSTAINABILITY REPORT 2023
Planet84

CLIMATE CHANGE
GRI 3-3

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

SIKA’S WAY TO NET ZERO
SIKA NET ZERO ROADMAPTo keep the world livable, we must limit temperature increase at In 2022, Sika initiated a net zero project to develop a detailed
a maximum of 1.5°C above pre-industrial levels. Achieving this roadmap with GHG emissions abatement targets. Steered by thegoal will require rapid system transformation, and the private Sustainability Leadership Team, the project involves several funcsector has a crucial role to play in the process. Businesses need tions including R & D, Procurement, Operations, Logistics, andto match their climate ambition with robust strategies and Target Markets, both at corporate and regional level.
­effective implementation to transition to a net zero economy.
Sika supports the Science-Based Target initiative (SBTi) and During the first phase of the net zero project, Sika conductedjoined the growing group of leading corporations that are set- a high-level assessment to identify potential decarbonizationting emissions reduction targets in line with the objective of the levers. In 2023, the net zero project continued and focused on
Paris Agreement. By doing so, Sika recognizes the crucial role the development of a decarbonization model to best quantify
companies can play in minimizing the risk climate change poses different decarbonization levers. The model factors in several
to the future of our planet.
hypotheses and assumptions regarding the availability of alternative raw materials, sectoral trajectories, and future waste
SBTI TARGETS VALIDATION
treatment infrastructure. The tool helps to identify the largest
Following its official commitment in September 2022, Sika devel- decarbonization levers, compare raw material alternatives, andoped and submitted its emissions reduction targets in line with test different scenarios. Based on the outputs of the decarbonthe latest SBTi criteria in October 2023. The validation process will ization model, roadmaps are currently being developed in differtake place in the first half of 2024. Sika’s commitment focuses on ent departments.
two time horizons for both scope 1 and 2 as well as scope 3 with anear-term target in ten years, and a net zero target by 2050. All Achieving net zero requires a combined effort from all staketargets are defined with 2022 as a baseline. For more information holders upstream and downstream of the company’s value chain.
on Sika’s carbon accounting ­methodology that serves as a basis Thus, creating strong partnerships and collaboration is key forfor its SBTi commitment, please see the “GHG emissions” section the success of this initiative. Collaboration with suppliers is aon p.86 of the Sustainability Report 2023. For more information foremost element of Sika’s net zero roadmap. For more informaon Sika’s ESG data governance including re-baselining, please see tion on supplier engagement activities in 2023, please see thethe “Methodological Note” chapter on p.147 of the Sustainability “Procurement” chapter on p.127 of the Sustainability Report 2023.
Report 2023.
For more information on Sika’s net zero roadmap, please see thecorporate webpage • Sika’s Way to Net Zero.
SBTI TARGETS AND TIME HORIZONS 1
The understanding and the engagement of Sika’s employees
Near-term (2032)
Net zero (2050)
is crucial for the success of the net zero project. In addition
Scope 1 and 2–42%–90% to internal cross-functional workshops, training instruments
emissions(1.5°C scenario aligned) (1.5°C scenario aligned) (e.g., net zero concept, scope 3 emissions methodology) andinternal tools (e.g., scope 3 emissions dashboard, visualization–25%
Scope 3(well below 2°C–90% of emissions hotspots per material category, integration ofemissionsscenario aligned) (1.5°C scenario aligned) GHG emissions data into R & D Development tools for new formulations) are now available to relevant employees to further
Total
support them in their projects.
emissions

–25%

–90%

1 As at 2023, scope 1 and 2 emissions account for ~2% of the total GHG emissions
emitted by Sika while scope 3 emissions account for ~98%.

SIKA SUSTAINABILITY REPORT 2023
Planet85

GHG EMISSIONS 1
GRI 3-3

GRI 305-1

GRI 305-2

GRI 305-3

GRI 305-4

GRI 305-5

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Sika monitors its greenhouse gas (GHG) emissions as part of the GHG EMISSIONS SCOPE 1 AND 2 – MARKET-BASED
environmental responsibility the company has for the climate. in 1,000 tons of CO 2eq
kg CO 2eq per ton sold300
Sika’s corporate carbon accounting (scope 1, 2, and 3) follows the30300
reporting guidelines of the Greenhouse Gas Protocol (GHGP).
250
250

25

SCOPE 1 AND 2 GHG EMISSIONS
200
Since 2019, Sika has defined the strategic target “climate per- 200
17.6
20
16.4
15.7
formance” for reducing scope 1 and 2 GHG emissions per ton
150
sold by 12% until 2023. Moreover, the compensation scheme of 150
15
Group Management and Senior Management was linked to the100
GHG emissions performance of the company (scope 1 and 2) in 100
10
the short-term incentive (STI) plan. Starting from 2024, the com50
5
pensation scheme of Top Management and Senior Management 50
has been adjusted to reflect the Strategy 2028. The performance 0
2021
2022
2023
conditions include environmental targets: GHG emission reduction (scope 1 and 2 per ton sold), water discharge reduction, andScope 1
Scope 2waste disposal reduction. The targets will be incorporated in thelong-term incentive (LTI) plan.
In absolute figures, scope 1 emissions increased at Group level
GHG EMISSIONS INTENSITY – SCOPE 1 AND 2 2
compared to 2022 (160,463 tons of CO2eq, +2.8% compared to
In 2023, the GHG emissions intensity per ton sold (scope 1 and 2) 2022) ( • Table 02: Breakdown of Scope 1 GHG Emissions per
was reduced from 16.4 to 15.7 kg CO2eq per ton sold, a reduction ­Region, in the “Key Performance Indicators” section at the endof –4.4%. Excluding acquisitions, the organic reduction was at of this chapter). This increase is driven by the MBCC acquisition,–8.1%. The GHG emissions intensity was negatively impacted which had a strong impact on direct energy, especially vehicle
by 2022 and 2023 acquisitions (+0.6 kg CO2eq per ton sold). The fuel (+14.6% compared to 2022). Excluding acquisitions, scope 1
continuous focus on maximizing renewable electricity sources in emissions decreased by –6.9% compared to previous year. This
Sika operations (–1.0 kg CO2eq per ton sold) and on various en- reduction is mainly related to reduced emissions from natural gas
ergy saving initiatives (–0.9 kg CO2eq per ton sold) were the most (–10.1% organic compared to 2022).
important levers to improve the GHG emissions intensity for theyear under review. The emission factor changes related to the
update of countries’ residual mixes for the scope 2 market-based
calculation also had a positive impact (–0.2 kg CO2eq per ton sold)( • Table 01: GHG Emissions Scope 1 and 2 – Market-Based, in the“Key Performance Indicators” section at the end of this chapter).

1 Acquisitions that occurred in 2023 did not lead to a restatement of 2021 and 2022 GHG emissions indicators disclosed in this section except when stated specifically.
2	Based on GHG market-based emissions.

SIKA SUSTAINABILITY REPORT 2023
Planet86

In accordance with the GHGP, refrigerant gas emissions are con- BREAKDOWN OF SCOPE 2 GHG EMISSIONS –sidered as fugitive emissions under Sika’s scope 1 inventory and MARKET-BASED PER REGION
represent 1% of scope 1 emission for 2023. These gases have an in 1,000 tons of CO 2eq
180
extremely high climate impact (up to or above 1,000 kg CO2eq/kg).
180
All local companies must comply with applicable laws and regula150
tions related to refrigerant gases. Local maintenance teams are 150
responsible for monitoring refills of such gases and equipment
120
changes. In the year under review, 1,602 tons of CO2eq were emit- 120
ted due to leakages of refrigerant gases (+46.6% vs 2022). The
90
related volume is included in the GHG Emissions intensity indica- 90
tor, with an impact of +0.1 kg CO2eq per ton sold.
60
60

BREAKDOWN OF SCOPE 1 GHG EMISSIONS PER REGION
180
150
120
90

in 1,000 tons of CO 2eq
180
150

30

30

0

2021

2022

EMEA

Americas

Global BusinessCorporate Services

2023
Asia/Pacific120

INTERNAL CARBON PRICING
Sika has implemented an internal carbon price for scope 1 and 2
60
emissions. It is considered for all major investment decisions and60
is relying on a shadow price mechanism. For the year under review,
30
30
the internal carbon price was set at CHF 80 per ton of CO2eq 1.
Scope 3 emissions are considered for process in-/outsourcing, for
0
2021
2022
2023
example insourcing of a sand-drying process considering the useof more energy efficient equipment helping to improve the overEMEA
AmericasAsia/Pacific
all emission footprint. Embedding a hypothetical cost of carbon
Global BusinessCorporate Services
emissions in the calculation for potential investments provides
a deeper understanding of how pricing GHG emissions affects
Market-based scope 2 emissions increased to 84,966 tons business cases. This strategic tool will further help Sika to steer
of CO2eq (+14.0% compared to 2022). Excluding acquisitions, its investment decisions towards climate-adapted operations,scope 2 market-based emissions decreased by –8.3% compared low-carbon investments, and opportunities. In the context of
to previous year thanks to an increased coverage of energy at- Sika’s net zero SBTi commitment and ongoing targets validation,
tribute certificats in Americas, Asia/Pacific, and Global Business a broader concept will be defined and set up over the coming years.
( • Table 03: Breakdown of Scope 2 GHG Emissions – MarketBased per Region, in the “Key Performance Indicators” section at SCOPE 3 GHG EMISSIONS
the end of this chapter). For additional information on Sika’s GHG Sika systematically identifies and calculates emissions from its
emissions reporting – location-based, please refer to • Table 04: material scope 3 GHG categories in accordance with the requireGHG Emissions – ­Location-Based and • Table 05: Breakdown ments of the GHGP. The calculation of scope 3 GHG emissions is anof Scope 2 GHG Emissions – Location-Based per Region, in the evolving topic based on various data sources. Sika is continuously“Key Performance Indicators” section at the end of this chapter. reviewing the calculation methodology to ensure transparency
and data robustness. This process helps the company to better
understand how it can lower its scope 3 emissions and engage
within the organization. In 2023, the changes in methodology
focused on the following categories:— Category 1 – Purchased goods and services: The calculationof upstream emissions of trading products and purchased
packaging changed from a spend-based to a quantity-based
methodology.
— Categories 4 and 9 – Upstream and downstream transportation: Additional granularity in the vessel distance is considered
for the top 50 transportation routes.
— Category 5 – Waste generated in operations: Emissions related
to wastewater treatment were added.
90

1 The price of Sika’s internal carbon mechanism is based on Bloomberg, Traded EU Carbon certificates. The price used is a fixed price per year, based on the average yearly price.

SIKA SUSTAINABILITY REPORT 2023
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— Category 7 – Employee commuting: All Sika entities follow the Sika’s scope 3 GHG emissions represent 98% of the company’ssame methodology. Any assumptions regarding home office carbon footprint and are driven by category 1 – purchased goods
for specific entities have been revised.
(53%), category 12 – EoL of sold products (30%), and category 4 –— Category 12 – End-of-life (EoL) of sold products: Various sce- upstream transportation (9%). With the acquisition of MBCC
narios were reviewed and updated for all material categories. Group Sika has recalculated its 2022 baseline and also consi­
dered its full impact for the year 2023. Even with the inclusion of
For additional information on the scope 3 assessment and cal- MBCC Group, Sika’s scope 3 GHG emissions decreased from 2022
culation, please see the • Sika Methodology for Scope 3 Emis- to 2023. The decrease was mainly due to a reduction of raw masions Calculation.
terial emissions driven by various initiative including a transition
from cements with high levels of clinker to low clinker cements.
The identification of material scope 3 categories provides de- Additionally, there was a methodology change for packaging
tailed information to drive scope 3 reduction initiatives. Within and trading products going from spend- to quantity-based.
the net zero roadmap, Sika focuses on key dedicated reduc- Upstream and downstream transportation were impacted bytion opportunities along the company’s value chain consider- increased emission factors from the GLEC framework update.
ing scope 3 emissions’ hotspots. For more information, please Capital goods mainly increased due to the additional assets
see the “­Climate Change” section on p.85 of the Sustainability coming from the MBCC acquisition.
Report 2023.
TOTAL SCOPE 1, 2, AND 3 GHG EMISSIONSSCOPE 3 GHG EMISSIONS
in 1,000 tons of CO2eq

2021

2022

Cat. 1 Purchased goods
and services

6,595

8,728

7,934

Cat. 12 End-of-life treatmentof sold products

4,190

4,641

4,554

Cat. 4 Upstream transportationand distribution

1,070

1,149

1,384

172

253

499

Cat. 2 Capital goods

1

2023

2

in 1,000 tons of CO2eq

2021

2022 12023 2

Scope 1

156

191

170

Scope 2 – Market-based

82

104

95

Scope 3

12,553

15,54715,082

Total scope 1, 2, and 3
GHG emissions

12,791

15,842

15,3471	2022 scope 1, 2, and 3 GHG emissions have been recalculated to reflect the
MBCC Group acquisition in line with SBTi net zero standards.
2	2023 scope 1, 2, and 3 GHG emissions disclosed in this table include the fullreporting year of 2023 acquisitions.

Cat. 9 Downstream
transportation and distribution

139

206

279

Cat. 11 Use of sold products

108

246

123

Cat. 5 Waste generated inoperations

108

102

89

in tons of CO2eq/CHF mn

2021

2022 12023 2

Cat. 3 Fuel- and energy-related
activties

81

87

89

GHG intensity (scope 1, 2, and 3)
per net revenue
1,382.5

1,509.9

1,365.5

Cat. 7 Employee commuting

63

79

80

Cat. 6 Business travel

6

23

28

Cat. 8 Upstream leased assets

21

33

23

Total scope 3 GHG emissions

12,553

15,54715,0821	2022 scope 3 GHG emissions have been recalculated to reflect the MBCC Groupacquisition in line with SBTi net zero standards.
2	Scope 3 GHG emissions include the full reporting year of 2023 acquisitions.

GHG EMISSIONS INTENSITY PER REVENUE

1	2022 GHG emissions intensity per net revenue includes 2022 scope 1, 2, and 3
GHG emissions from MBCC Group.
2	2023 figure includes the full reporting year of 2023 acquisitions.

OUT-OF-SCOPE EMISSIONS
According to the GHGP, CO2 emissions from biogenic sources
should be reported separately from the total scope 1, 2, and 3
GHG emissions inventory. In 2023, Sika extended the calculation of out-of-scope emissions to include emissions related to
relevant scope 3 categories (cat. 1 and cat. 12). Sika generated
56,671 tons of CO2 emissions from biogenic sources. For scope 1,
Sika’s biogenic CO2 emissions (1,671 tons of CO2eq) come from theconsumption of biodiesel and ethanol as vehicle fuel. For scope
3 category 12, biogenic CO2 emissions come from the end-of-life
incineration or landfilling of biobased materials and are calculated using the carbon content method (55,000 tons of CO2eq).
For scope 3 category 1, biogenic uptake is based on the IPCC
AR6 GWP100 impact assessment and represents the net biogenic uptake in biobased raw materials (282,000 tons of CO2eq)( • Table 06: Out-of-Scope Emissions, in the “Key Performance
Indicators” section at the end of this chapter).

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ENERGY MANAGEMENT 1
GRI 3-3

GRI 302-1

GRI 302-3

GRI 302-4

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Even if Sika’s own production is not energy-intensive, Sika sees ENERGY INTENSITY
itself as responsible for minimizing its impact by reducing its The company strives to improve its manufacturing energy effienergy consumption and improving energy efficiency throughout ciency and has set the target of reducing its energy intensity by
its production processes. Through the Global Energy Efficiency 3.0% per ton of product sold per year. In 2023, the energy intenMonitoring Program initiated in 2020, which has been rolled out sity of Sika operations per ton sold was 295.8 MJ, a decrease ofin all regions with the support of the Global Operations Technol- –6.2% compared to 2022. This improvement was mainly driven
ogy Department, Sika continues to implement energy efficiency by the increased tons sold from technologies that are less energy
projects around four categories:
intensive ( • Table 07: Energy Intensity, in the “Key Performance— Sand dryer optimization: Natural gas is the major source of Indicators” section at the end of this chapter).
Sika’s direct GHG emissions, so the optimization of sand dryer
processes is an important energy efficiency lever in mortar ENERGY INTENSITY
Energy intensity (MJ) per ton soldproduction facilities. Installing moisture sensors connected in TJ
4800
to the control system of the dryer, active drainage systems
450
4,800
in sand storage areas, and heat recovery systems can signifi4000
cantly reduce energy consumption. In 2023, the implementa- 4,200
375
324.7
315.5
tion of moisture sensors was extended to additional factories
295.8
3200
in Latin America and in Asia/Pacific.
300
3,200
— Manufacturing process optimization: The optimization and2400
replacement of energy-intensive equipment (chillers, mo- 2,400
225
tors, or heating and cooling systems) lead to energy savings.
1600
Production process improvements such as energy recovery, 1,600
150
compressed air control (leakage detection and elimination
800
75
of air losses in pressurized air system), or energy-efficient 800
processes of cooling water in membrane production also have 0
2021
2022
2023
an impact. Checklists, recommendations, and best demonstrated practices (BDPs) related to energy efficiency throughDirect energy consumption
Indirect energy consumption
process optimization in operations are shared and available
to an extensive network of Sustainability and Operations repENERGY INTENSITY PER REVENUE
resentatives within Sika.
— Utilities management: Sika aims to improve the energy ef2021
2022
2023
ficiency of its premises with various initiatives such as in MJ/CHF mn
LED lighting, building and roofing insulation improvement, Energy intensity per net revenue
474.3
422.3
411.3
air conditioning system improvement, and vehicle fleet optimization. Energy efficiency is integrated into the planningand building of new premises.
— Self-production of renewable energy: Solar panel projects
have been installed in several new countries.
Every quarter, a regional reporting on this program, its initiatives, and their associated impacts on energy and GHG emissions
savings is submitted by Regional Sustainability Managers to
ESG Controlling to ensure consistent aggregation and monitoringat Group level and ensure the sharing of best practices.

1 Acquisitions that occurred in 2023 did not lead to a restatement of 2021 and 2022 energy indicators disclosed in this section.

SIKA SUSTAINABILITY REPORT 2023
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ENERGY CONSUMPTION WITHIN SIKA OPERATIONSSika relies on several energy types for drying, stirring, mixing,
melting, cooling, ventilation, heating processes, and pumping, as
well as buildings’ heating or air conditioning and transportation.
For 2023, Sika used 4,623 terajoule (TJ) of energy, an increase of+4.3% compared to 2022. More than half of the energy used inSika direct operations (60.5%) comes from the conversion of primary energy, such as light liquid fuel (2.7%), Liquified Petroleum
Gas (2.8%), vehicle fuel (17.7%) and natural gas (37.3%). Self-produced renewable energy represented 0.4% of Sika’s total energy
consumption for 2023. Purchased electricity makes up 38.9% of
the energy used in Sika sites while district heating remains minor
with 0.2%. The overall increase in energy consumption is mainly
driven by MBCC Group. Excluding acquisitions, Sika energy consumption decreased by –4.9% ( • Table 08: Breakdown of Direct
Energy Consumption per Region, and • Table 09: Breakdown
of Indirect Energy Consumption per Region in the “Key Performance Indicators” section at the end of this chapter).
BREAKDOWN OF DIRECT ENERGY CONSUMPTIONPER REGION
3000
2500
2000
1500
1000
500

in TJ

BREAKDOWN OF ENERGY CONSUMPTION PER SOURCE
in TJ

2021

2022

2023

Direct energy

2,771

2,750

2,817

Heavy liquid fuel

3

–

0

Light liquid fuel

192

133

126

Natural gas

1,786

1,794

1,727

Liquified Petroleum Gas

98

109

127

Vehicle fuel

689

707

819

3

7

18

Indirect energy

1,617

1,680

1,806

Purchased electricity

1,617

1,672

1,799

Self-produced electricity fromrenewable sources

District heating
Total energy

1

–

8

7

4,388

4,430

4,623

1	In 2022, district heating was added to the scope 2 inventory as per the GHGP
and included in Sika’s indirect energy consumption. 2021 data have not been
restated accordingly.

3,000
2,500
2,000
1,500
1,000
500

0

2021

2022

EMEA

Americas

Global BusinessCorporate Services

2023
Asia/Pacific

BREAKDOWN OF INDIRECT ENERGY CONSUMPTIONPER REGION
1800
1500
1200
900
600
300

in TJ
1,800
1,500
1,200
900
600
300

0

2021

2022

EMEA

Americas

Global BusinessCorporate Services

2023
Asia/Pacific

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PURCHASED RENEWABLE ELECTRICITY RATE 1
RENEWABLE ENERGY% of purchased renewable electricity rate
In addition to its focus on energy efficiency, Sika also aims at in TJ
1800
extending the share of both direct and indirect energy from80
1,800
renewable sources. For direct energy, biofuel is being used for
1500
vehicle fleets in several countries (25 TJ, +33.8% vs 2022). In 1,500
70
62.7%
the past few years, Sika has also invested in on-site renewable
1200
electricity self-production through installing solar panels on Sika 1,200
55.6% 60
buildings. From 2021, internal carbon pricing was implemented
52.3%
900
to favor solar panel investments and increase self-produced re- 900
50
newable energy. For more information, please see the “Planet”
600
chapter, “GHG Emissions” section on p.86 of the Sustainability 600
40
Report 2023. In 2023, self-produced renewable electricity in300
30
stallations were operational across 18 countries, representing 300
18 TJ of self-produced direct energy. In the same year, solar panel 0
2021
2022
2023
installations were completed in Austria, Switzerland, Portugal,
China, and Thailand. More installations are planned for 2024.
Purchased non-renewable electricity
Purchased renewable electricity
BREAKDOWN OF ENERGY CONSUMPTIONPER RENEWABLE SOURCES
in TJ

1 This renewable rate does not consider self-produced renewable electricity. It
also excludes renewable shares from local electricity grid mix.

2021

2022

2023

Direct energy from renewablesources3

26

43

Vehicle fuel from renewablesources–

19

25

Self-produced electricity fromrenewable sources

3

7

18

Indirect energy from renewablesources – Purchased renewableelectricity

845

1,048

1,001

Total energy from renewablesources

848

1,074

1,044

Regarding indirect energy, Sika aims at maximizing the shareof renewable electricity supply in its operations through diverse
types of renewable instruments. Sika’s purchased renewableelectricity rate decreased to 55.6% at the end of 2023 (–7.0 percentage points compared to 2022). This decrease is driven
by MBCC Group acquisition, with a low purchased renewableelectricity rate, and by a lower volume of Energy AttributeCertificates purchased in the EMEA region compared to 2022
( • Table 10: Purchased Renewable Electricity Rate, in the “KeyPerformance Indicators” section at the end of this chapter). As
part of Sika’s net zero journey, ensuring a high renewable electricity rate will be a key lever for reducing scope 2 GHG emissions.

Securing long-term renewable electricity instruments is preferable, and 49.5% of purchased renewable electricity is coveredby those instruments. In addition, 6.2% of renewable electricity
comes from a Power Purchase Agreement settled in the UnitedStates for one automotive factory. However, depending on thelocal context, the availability of green contracts can be limited.
Thus, 43.8% of the purchased renewable electricity comes fromone-time Energy Attribute Certificates (EACs) such as RECs(­Renewable Energy Certificates), I-RECs (International Renewable Energy Certificates), or quarterly Guarantees of Origins (GOs).
BREAKDOWN OF PURCHASED RENEWABLE
ELECTRICITY PER TYPE OF INSTRUMENTin %OTHERS 1
0.5%

ONE-TIME
PURCHASED EACs
43.8%

6+49+441

PPA(POWER ­PURCHASE­AGREEMENT)
6.2%
GREEN TARIFFS OR
LONG-TERM RECs/
GO CONTRACTS
49.5%

1	Ethiopia, Paraguay, and Uruguay report 95% of their electricity as renewablesince their local grid is 95% renewable (source: RE100 Technical criteria 2021).

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WATER MANAGEMENT 1
GRI 3-3

GRI 303-1

GRI 303-2

GRI 303-3

GRI 303-4

GRI 303-5

GRI 306-1

GRI 306-5

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Although Sika’s production is less water-intensive than other BREAKDOWN OF WATER WITHDRAWAL PER SOURCE 1
industrial companies within the chemical sector, Sika takes in million m3
full responsibility for minimizing its impact on water resources4,8 4.8throughout the value chain. Water is needed for the following
4,0
uses:
4.0
— Input material: Some Sika products are water-based in the
3,2
product range of concrete admixtures, coatings, and adhe- 3.2
sives solutions, among others.
2,4— Direct operations: Water is used directly in Sika’s operations 2.4
for process and cooling purposes but also for cleaning.
1,6— Indirect operations: Water is not only used by suppliers in 1.6
their operations but also by customers when using or applying
0,8some of Sika’s products. Water can be a mixing component or 0.8
used for cleaning tools once the product has been applied. 0,0
2021

2022

2023

As water scarcity and water-related extreme weather events
Groundwater
Public supply
intensify in many regions of the world, this may pose a threat
Surface waterbodies
Rainwater
to business operations. Especially in areas where freshwater isscarce, businesses may be exposed to water shortages, lower 1 This indicator includes the volume of water used as an input material.
­water quality, water price volatility, and reputational issues.
Therefore, Sika continues to implement dedicated water effi- To reduce the amount of processed freshwater withdrawal andciency initiatives globally to reduce the amount of processed limit the dependency on public water supply reservoirs, several
freshwater withdrawal, optimize water-related production initiatives were implemented:
processes with closed-loop cooling systems or cooling towers, — Several factories have switched from public water supply tocleaning processes, and reuse of treated wastewater.
groundwater sourcing.
— A few factories – 17 factories in 13 countries – collect rainwater
WATER WITHDRAWAL(0.5% of total water withdrawal) to cover part of their freshWater is withdrawn across the operations from groundwater wells
water demand, specifically in locations in which the public(51.0%), public supply (47.3%), surface waterbodies (1.2%) andwater supply is limited. The rainwater is then either used for
rainwater (0.5%). In line with water usage, the volume of watercleaning processes and sanitary purposes or filtered/treated
withdrawal increased by +4.0% compared to 2022 due to MBCC
and used in the production processes instead of freshwater.
Group acquisition ( • Table 11: Breakdown of Water Withdrawal — In the concrete admixture production, one key initiative is toper Source, in the “Key Performance Indicators” section at the
reduce the amount of water withdrawal by collecting cleaning
end of this chapter). Excluding acquisitions, water withdrawal
and rinsing water from production processes and reusing it asvolumes decreased by –6.1% compared to 2022.
a raw material input.

1	Water indicators for 2021 and 2022 disclosed in this section have been restated due to a stricter application of internal reporting rules for groundwater volumes
withdrawn used for cooling processes in one factory. Acquisitions that occurred in 2023 did not lead to a restatement of 2021 and 2022 water indicators disclosed inthis section.

SIKA SUSTAINABILITY REPORT 2023
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WATER CONSUMPTION
In 2023, the water consumption per ton sold was 0.21 m3, a de- BREAKDOWN OF WATER USAGE PER TYPE
crease of –12.2% compared to 2022 ( • Table 12: Water Consump- in million m3
tion Intensity, in the “Key Performance Indicators” section at the4,8 4.8
end of this chapter). Excluding acquisitions, water consumption
4,0
per ton sold decreased by –8.0%. This improvement was partially 4.0
supported by the continuous implementation of water initiatives
3,2
across the Group and the increased sales of products that con- 3.2
sume less water in Sika operations.
2,4
2.4

WATER CONSUMPTION INTENSITY 1
4,2
3,5
2,8
2,1
1,4
0,7

in million m 3

1,6

Water intensity (m per ton sold)

0.30
0,8

4.2

0.25

3.5

0.24

0.25
0,0

0.21

2.8

0.20

2.1

0.15

1.4

0.10

0.7

0.05

0,0

2021

2022

2023

1	The water intensity ratio is only based on process and cooling water andsanitary water. Water in products is excluded from this indicator.

WATER INTENSITY PER REVENUE
in m3/CHF mn

2021

2022

2023

Water intensity per net revenue 1

370.5

319.1

291.2

1	The water intensity ratio per net revenue is only based on process and coolingwater and sanitary water. Water in products is excluded from this indicator.

In its direct operations, Sika used around 4.5 million m3 of water(+4.2% compared to 2022). This increase is due to MBCC Groupacquisition. Excluding acquisitions, water usage decreased by–6.0%, with a positive impact of continuing water initiatives in the
United States. Water is used for processing and cooling (56.1%)
but also for sanitary purposes (17.0%). Almost one-third of thewater used at Sika is utilized as an input material for products(26.9%) ( • Table 13: Breakdown of Water Usage per Type, in the“Key Performance Indicators” section at the end of this chapter).
76% of the process and cooling water used in operations comesfrom three sites: Verona (Italy), Sarnen (Switzerland), and­Innsbruck (Austria). These factories withdraw large quantities ofwater for cooling processes and then discharge it back to original
sources with negligible losses or variation in quality.

1.6
0.8

2021
Process and cooling water

2022
Water in products

2023
Sanitary water

In terms of water usage, main water initiatives focus on optimizing the equipment, production processes, and cleaning processes:— Sika aims to reduce the volume of wastewater generated.
Some facilities have their own wastewater treatment installation, which allows reuse of the treated wastewaterin production, cooling, or cleaning processes through water
sedimentation, distillation, or filtration. The optimizationof producing and cleaning processes is also a major sourceof wastewater reduction. As an example, implementing a
production matrix and defining a color change routine canminimize the need for cleaning between different production
batches.
— Closed-loop systems have been implemented in Sika’s factories across the world for many years to ensure water efficiency.
— Cooling processes can be water intensive. Several actions arerolled out through the Group to reduce the related impacts.
— Lastly, flow reducers and automatic valves are commonly installed to reduce the water used in R & D laboratories or social
areas.
WATER DISCHARGE
All local companies must discharge water in line with local legislation and permits, either to sewers or sewage plants, or directly
to surface waterbodies or to underground water formations. In
many Sika factories, the water used for processing and cooling iscollected in tanks and treated in Sika’s own treatment plants or
through third party treatment facilities. In 2023, Sika discharged
3.1 million m³ of water, a decrease of –2.0% compared to 2022.
Excluding acquisitions, water discharge decreased by –7.2%
compared to previous year. 37.2% of water used is discharged
to underground water formations, 31.7% of water used goesto sewers or sewage plants, whereas 29.1% of water used isdischarged directly into surface waterbodies. In addition, 2.0%
of water used is sent off-site for treatment by a third party( • Table 14: Breakdown of Water Discharge per Destination,in the “Key Performance Indicators” section at the end of thischapter). The difference between the water discharge and thewater use comes from the evaporation that takes place during
the cooling process of some production technologies.

SIKA SUSTAINABILITY REPORT 2023
Planet93

BREAKDOWN OF WATER DISCHARGE PER DESTINATION
4,2
3,5
2,8
2,1
1,4
0,7
0,0

in million m 3
4.2

As part of Strategy 2028 global rollout, the focus on water-stressareas and related mitigation plans will be reinforced to reduce
freshwater intake.
In 2023, to boost the focus on water-related risks, Sika hasrepeated and extended the assessment of its manufacturing
sites 1 at risk of water stress based on the World Resource Institute (WRI) Aqueduct tool 2, including not only extremely highwater stress but also high-water stress areas. The underlying
GPS coordinates of each site were taken into consideration toensure a precise analysis per location. According to this database, 154 manufacturing sites in 43 countries are in areas withextremely high or high water stress.

3.5
2.8
2.1
1.4
0.7

2021

2022

2023

Water to ground

Water to sewage plant

Water to surface waterbodies

Water sent off-site for treatment

WATER DISCHARGE PARAMETERS
All local companies must comply with applicable laws and regulations related to water discharge parameters. For example,
the quality of effluent is monitored through discharge analysis
measurements and several indicators (e.g., PH, temperature,chemical oxygen demand (COD), and solids in suspension) at site
level depending on local regulations.

MANUFACTURING SITES IN WATER STRESS AREA
in numbers

Factories in extremely
high water stress

Factories in highwater stress

EMEA

44

16

Americas24

18

Asia/Pacific26

21Global Business

4

1

Group

98

56

WATER–RELATED RISKS, IMPACTS, AND MITIGATIONACTIVITIESWater availability is a crucial need along Sika’s value chain. Thus,
water scarcity and water stress expose Sika’s business to various risks such as lower water quality, freshwater shortage, andreduced water accessibility. It could result in increased watersupply and manufacturing costs, manufacturing disruption in
Sika’s admixtures factories or throughout the value chain, andincreased regulatory burden or reputational issues.
As water becomes scarcer, this presents an opportunity for
Sika to reinforce its market share and sales, especially in highwater-stressed areas. As an example, the application of Sika’swaterproofing products helps reduce water loss, and Sika’s concrete admixtures allow less water use during the production of
concrete.

1	Non-production sites such as warehouses not linked to manufacturing locations, sales offices, and headquarters have been excluded from the analysis. Sika’s supply
chain has not been covered by this assessment.
2	Using the Aqueduct Water Risk Atlas, Sika identifies the projected exposure of each manufacturing location to baseline water stress. Baseline water stressmeasures the ratio of demand for water by human society divided by available water. It is an indicator of competition for water. Locations facing extremely highwater stress (>80%) and high water stress (40-80%) were identified by applying the indicator “bsw” (Baseline Water Stress).

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WATER STRESS MAP – MANUFACTURING SITESREGION EMEA
AngolaGreeceQatar

Azerbaijan

Iraq

RussiaBelgium

Iran

Saudi Arabia

Bahrain

Italy

SenegalGermany

JordanTunisia

Algeria

LebanonTurkeyEgypt

MoroccoGreat Britain

Spain

NigeriaSouth Africa

FrancePortugal

REGION
ASIA/PACIFIC
Australia
REGION AMERICAS
BrazilCanadaBangladesh
China
Indonesia

Chile

India

Mexico

Korea

Peru

Mongolia

United States

PakistanVenezuela

Thailand

Factories located in high water stress areas
Factories located in extremely high water stress areas

SIKA SUSTAINABILITY REPORT 2023
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In 2023, water withdrawal in extremely high water-stress locations re­presented 644,284 m3 (14.4% of the total Group) and
358,136 m3 in high water-stress locations (8.0% of the total
Group). In these locations, water was mainly withdrawn frompublic water supply (88.2%) but also from groundwater wells(10.0%) and surface water­bodies (1.4%). 0.4% of water withdrawal came from rainwater.

Moreover, in alignment with the TNFD guidance, Sika is building
an understanding of the importance of nature-related issues andhas started gathering the required information and resources.
For more information, please see the “Biodiversity and Nature”
section on p.101 of the Sustainability Report 2023.

WATER-RELATED IMPACTS IN THE SUPPLY CHAIN
At supplier level, it is important that the chosen suppliers are
For the year under review, the water usage of extremely high committed to the same sustainability standards as Sika. Supwater-stress locations was 647,193 m3 (14.5% of the total Group) pliers must operate in full compliance with all laws, regulations,and 358,585 m3 in high water-stress locations (8.0% of the total and international standards – including health, safety, andGroup). In these locations, 64.4% was used as an input material environmental laws and regulations – applicable both to theirinto Sika products, 23.9% for sanitary purposes, and 11.7% as operations and products. A core pillar of Sika’s supplier qualifiprocess and cooling water in production.
cation process is the Sika Supplier Code of Conduct, which setsout Sika’s e­ xpectations for the supplier network, as well as clear
Water discharge in extremely high water-stress locations was rules and guidelines regarding the environmental standards that
198,956 m3 (6.3% of the total Group) and 120,928 m3 in high must be implemented by Sika suppliers. For more information onwater-stress locations (3.8% of the total Group). 76.4% of wa- the Sika Supplier Relationship Management approach including
ter used goes to sewers or sewage plants, 10.2% is discharged ESG risk assessments and evaluations, please see the “Procuredirectly into surface waterbodies, whereas 2.7% is discharged to ment” chapter on p.127 of the Sustainability Report 2023.
underground water formations. In addition, 10.7% of water used
is sent off-site for treatment by a third party ( • Table 15: Water HOW SIKA ENGAGES CUSTOMERS WITH SIGNIFICANT
Withdrawal, Usage, and Discharge in Water-Stress Areas, in the WATER-RELATED IMPACTS“Key Performance Indicators” section at the end of this chapter). Water consumption is a major issue for Sika’s customers and atarget area of the Sika Sustainability Strategy. A variety of Sika
In these extremely high and high water-stress areas, several solutions are available for water infrastructure, such as:
mitigation measures have been implemented:— Water reservoirs: Sika products comply with public water au— Scheduling and optimization of production sequence in thethorities’ strict regulations and can be designed and adapted
admixture line.
to meet the specific needs and requirements of all customers.
— Use of air conditioning drain water for domestic usage.
— Water dams: Sika solutions make a positive contribution to the— Collection and filtration of rainwater then used for domestic
overall performance of all types of hydraulic structures, while
usage.
also potentially reducing construction and operating costs.
— Installation of water saver filter taps for optimized water dis- — Sewage and wastewater treatment plants: Sika has innovacharges in washrooms.
tive solutions to prevent leaks and protect water quality – for— Storm drainage collection system to collect rainwater sepanew construction and maintenance.
rately for roofs and paved areas.
— Treatment and reuse of cleaning water/wastewater in produc- Overall, Sika solutions help to reduce water consumption andtion processes (e.g., in the blending process of admixtures improve quality of water, contributing to mastering the challenge
production).
of providing a growing global population with access to clean— Treatment of water through sewage treatment plants used drinking water. For instance, concrete admixtures such as Sika®
for flushing activities.
ViscoCrete® reduce the amount of water required for manufac— Reuse of treated water for sanitary services and domestic turing concrete by up to 40%. The concrete remains flowable,
usage.
achieves a higher strength when cured, and valuable resources— Reuse of water from the cooling process for domestic usage. are saved.
Not only water stress but also other water-related risks are ACCESS TO WASH SERVICES
monitored by the company. More information on the assess- Sika is devoted to contributing to the achievement of the United
ment of Sika’s direct exposure to riverine and coastal flood, Nations Sustainable Development Goals (UN SDGs). Goal 6 forainfall, heavy rainfall, and longest dry spell is available in the cuses on the universal provision of safely managed water, sanichapter “Physical climate-related impact analysis” on p.5 of the tation, and hygiene services (WASH services). The provision of• TCFD Report 2023.
safely managed WASH services at the workplace is managed
at local level across the company’s operations, and according toEven if the current analysis did not consider the impact of water- applicable local regulations.
related risks beyond Sika’s operation, the company acknowledges
that such risks could have an impact up and down the value
chain. For example, business disruption at supplier level leading
to shortages and price increase of raw materials and, therefore,
increased operational costs for Sika.

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WASTE MANAGEMENT 1
GRI 3-3

GRI 306-1

GRI 306-4

GRI 306-5

GRI 306-2

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Improving Sika’s material efficiency through applying circular In 2023, the quantity of waste generated per ton sold was 10.6 kg,
principles along the value chain will be critical for Sika’s path to a decrease of –2.5% compared to 2022. The waste intensity
net zero. Sika is committed to preventing waste in its activities compared to total input materials remained stable at 1.3%. In
and ensuring optimal waste management along the value chain. absolute numbers, waste volumes increased by +8.5% compared
The promotion of circular principles, the efficient use of input to 2022 due to MBCC Group acquisition. Excluding acquisitions,materials for production, and the reuse or recycling of materials waste volumes decreased by –2.9%. This was driven by theto reduce waste are key priorities for Sika. The company reduces continuous implementation of various waste management inithe amount of waste per ton sold by optimizing production plan- tiatives ( • Table 16: Waste Intensity, in the “Key Performancening, streamlining the production process layout, and reusing Indicators” section at the end of this chapter).
production offal. In addition, Sika has started to implement performance enhancements by using more recycled materials. Sika’s WASTE INTENSITY
Waste intensity (kg per ton sold)waste management approach focuses on several reduction and in 1,000 tons
180
optimization levers:
18
180— At raw material level, Sika optimizes the sourcing of pur150
chased materials, for example by seeking ideal packaging 150
15units (primary and secondary), bigger supply units (bulk,
120
tanker lorry, and big bags vs small packaging units), and 120
12
11.2
10.8
10.6
recycling supply units. Developing weekly materials supply
90
programs, optimizing the specific tolerances of raw materi- 90
9als, and minimizing quality control sampling also reduce the60
quantity of waste generated during the procurement phase. 60
6— At production level, Sika focuses on streamlining production30
3process layout and on optimizing production planning and 30
processes. Sika aims to reuse and recycle production offal. 0
2021
2022
2023
Wastewater from rinsing or cleaning processes for tanks,delivery trucks, or production equipment can be separated
Hazardous waste
Non-hazardous waste
and reused in production processes. Through recycling or byproduct reuse in manufacturing processes, Sika diverts material from disposal.
— At warehouse level, innovative warehouse management helps
to improve product turnover and reduce the quantity of expired products.
— Regarding downstream logistics, the reuse of raw materials’ pallets and bulk containers for transportation of finishedproducts is a strong focus that helps reduce the amount ofvirgin packaging needed downstream.

1 Acquisitions that occurred in 2023 did not lead to a restatement of 2021 and 2022 waste indicators disclosed in this section.

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Sika’s waste is mainly classified as non-hazardous waste: 87.0% In 2023, the waste recycling rate increased by +7.5% compared to(88.3% in 2022). In 2023, approximately half of the waste volume 2022. This increase was mainly driven by several factories imple(56.6%) was categorized as non-recoverable, of which 68.9% menting initiatives to divert waste from disposal ( • Table 18:
went into landfill and 31.1% was incinerated with or without en- Recycling Rate, in the “Key Performance Indicators” section at
ergy recovery. The remaining 43.4% was recycled. Non-hazardous the end of this chapter).
waste went mainly to recycling (45.8%) and to landfill (42.4%),
the remaining (11.8%) was incinerated. Hazardous waste went RECYCLING RATE
Recycling rate in %mainly to incineration (56.5%) and to recycling (27.5%), the in 1,000 tons
180
remaining (16.0%) went to landfill. In the coming years, Sika
60
180
will keep working on diverting waste from disposal and reduc150
ing waste to landfill where possible ( • Table 17: Breakdown of 150
50
43.4%
Waste by Type of Destination, in the “Key Performance Indica120
40.4%tors” section at the end of this chapter).
40
120
BREAKDOWN OF WASTE BY TYPE OF DESTINATION
180
150
120
90
60
30
0

in 1,000 tons

90
60

180

30

150

0

120

33.9%
90

30

60

20

30

10

2021

2022

2023

Hazardous waste (total volume disposed)90

Non-hazardous waste (total volume disposed)

60
30

2021
Waste to recycling

2022
Waste to landfill

2023
Waste to incineration

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CIRCULAR ECONOMY 1
GRI 3-3

GRI 301-1

GRI 301-2

Circularity principles are becoming increasingly compelling
due to higher awareness and shifting demand towards moresustainable solutions among customers in construction andtransportation markets. Sika’s initiatives help the developmentof a circular economy in its industry. These include partneringwith downstream customers, universities, and startups toco-design and implement products. Collaboration projects are
essential because deep circularity interventions rely on accessto cost-­effective sustainable energy and renewable/recyclable
feedstock with appropriate specifications. Sika has started toseek performance enhancements by using recycled materials
and alternative non-fossil-based raw materials. One example isthe development of mortars formulated with recycled fillers or
residues that come from other industries.

resource consumption in downstream industries, such as inconstruction or industrial manufacturing, where Sika solutions
enable customers to increase the use of recycled input materials.
Three-quarters of all materials used in production 2 are mineralssuch as inorganic fillers and cement. The remaining volume ofmaterials – e.g., for adhesives, resin products, roofing and water­
proofing membranes, polymer concrete admixtures, or parts
for the automotive industry – are based on crude oil or crude
oil derivatives (downstream products) or require fossil fuels forconversion.

The company uses a small amount of renewable raw materials
from plant-based sources, such as castor oil or alcohol. The expanded use of renewable raw materials going forward depends onavailability, economic viability, quality and limitations in the use
Moreover, Sustainability Portfolio Management (SPM) is the in formulations compared to non-renewable feedstock. However,backbone of the Sustainable Solutions strategy. It defines how through R & D, the company is constantly exploring ways to use
Sika structures the innovation of products that combine perfor- non-petroleum-derived materials for Sika products. For moremance and sustainability benefits. The Sustainability evaluation information on Sika’s raw material procurement, please see thecarried out in accordance with SPM is a comprehensive evaluation “Procurement” chapter on p.127 of the Sustainability Report 2023.
of the product profile along the 12 most relevant Sustainability
Categories for Sika and its stakeholders, following a 360° perspec- In 2023, Sika used 13.0 million tons of input materials, an intive beyond current regulations. “Resources/­Circular ­Economy” crease of +8.8% compared to 2022, in line with the acquisitionis one of the 12 Sustainability Categories, against which new impact of MBCC Group. For the year under review, 1.9% of total
product developments will be systematically evaluated. For more input materials used in production were recycled materials, a
information on Sika’s SPM concept, please see the “Products and decrease by –1.4 percentage points compared to 2022 due to a
Customers” chapter, “Product Portfolio” section on p.116 of the lower rate for MBCC entities ( • Table 19: Input Materials Used,
Sustainability Report 2023.
in the “Key Performance Indicators” section at the end of thischapter). In 2023, over 370 ktons of Supplementary Cementitious
MATERIALS USED BY WEIGHT OR VOLUME
Materials (SCM) were used such as fly ash or slag.
Sika strives to constantly increase efficiency in the use of input materials. Research and development are governed by theprinciples of sustainable development and enhanced customer
utility, such as the demand for resource-saving construction
methods, energy-efficient construction materials, or lighter andsafer vehicles.
With the deployment of the SPM Methodology, product development projects will also be geared towards a higher inherent
sustainability profile in raw material sourcing, consumption,
production, marketing, use-phase, and end-of-life treatment.
Through its sustainable solutions, Sika strives to reduce the1 Acquisitions that occurred in 2023 did not lead to a restatement of 2021 and 2022 indicators disclosed in this section.
2	Based on quantities.

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INPUT MATERIALS USED 1
15,0
12,5
10,0
7,5
5,0
2,5
0,0

in millions of tons

% of recycled input materials (tons)

15.0

6

12.5

5

3.7%

10.0

4

3.2%
3

7.5

1.9%

5.0

2

— At supplier level, Sika has rolled out a Sustainable Packaging
Challenge initiative in various regions with the goal of engaging with current and potential new suppliers to seek innovative
sustainability performance enhancement in packaging. For
more information on this initiative, please see the “Procurement” chapter on p.127 of the Sustainability Report 2023.
— As part of the 2023 edition of the Global Innovation Challenge, the winning team focused on sustainable packaging.
For more information, please see the “Products and Customers” chapter, “Innovation Management” section on p.113 of
the Sustainability Report 2023.

1

2.5

2021

2022

2023

1	Excluding water, packaging, and semi-finished products (raw materials alreadyprocessed by Sika through a first production/assembly process).

For many other secondary materials, such as packaging or solvents, local Sika companies use circular systems or rely on therecycling systems in place in their respective countries.
PACKAGING MATERIALSSika has started to seek sustainability performance enhancement in its approach to packaging. Its products are mainly delivered in the following types of primary packaging:— Plastic is mainly used for water-based products like mortars
and concrete products, flooring, and adhesives.
— Tinplate and steel are mainly used for solvent-based and multi­
component products like adhesives, flooring, and coatings.
— Aluminum is used for sealants, adhesives, and pre-treatments.
— Paper packaging is used for cementitious and mortar productsthat are distributed in valve bags.
As part of Sika’s net zero journey, using less carbon-intensive
packaging materials, increasing the share of recycled packaging materials and reusable packaging solutions, and reducing
the amount of packaging materials will be a strong focus in the
future. For this reason, Sika is cooperating with various stakeholders (suppliers, distributors, customers, and universities) todevelop packaging solutions with a lower environmental impact.
For example:— In 2023, the packaging manufacturer Muhr & Söhne GmbH &Co. KG, Germany, and Sika were awarded the German Packaging Award 2023 for their sustainable concept of the latest generation of tinplate cartridges – MUHR TinKart – forsilicones, acrylics, and various other adhesives and sealants.
The award-winning concept relies on a nearly 100% recyclable
tinplate cartridge made from certified recycled steel which
contributes significantly to circularity and CO2 reduction.
Sika uses tinplate made of certified recycled steel with anincreased proportion of scrap in the balance sheet for tinplatecontainers in Austria, Germany, and the USA.

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BIODIVERSITY AND NATURE
GRI 3-3

Biological diversity is essential for our ecosystem and well-being. In 2023, in alignment with the guidance for the “Locate” step,
But it is often overshadowed by other imminent environmental Sika performed a first analysis to identify and prioritize potential
risks such as climate change. Businesses are as dependent on nature-related issues and main business interfaces focusing only
biodiversity as humans are – without it, raw materials and supply on direct operations. For this purpose, four different tools werechains would be heavily disrupted. Biodiversity is highly intercon- used: ENCORE 3, SBTN Sectoral Materiality 4, World Resource Innected with other environmental issues, including deforestation, stitute (WRI) Aqueduct 5, and IBAT 6.
pollution, climate change, urbanization, and water scarcity.
Sika used the first two tools to screen and investigate the moderIn 2022, “Biodiversity and Nature” was identified as one of ate, high, and very high dependencies and impacts on nature forthe material topics (for more information, please see • Sika the specialty chemicals sector 7. By leveraging ENCORE to screen­Materiality Analysis 2022), and in the same year Sika joined the this sector, moderate and high impacts and dependencies wereTaskforce on Nature-related Financial Disclosures (TNFD) Forum 1, identified for Sika’s direct operations. The analysis excludes ima global multidisciplinary consultative group of institutions with pacts and dependencies that occur within the supply chain.
over 1,300 Forum members. With its participation at the TNFD
Forum, Sika shares the ambition of the TNFD to develop a risk
management framework for organizations to report and act on IMPACTS FOR THE SPECIALITY CHEMICALS SECTOR
evolving nature-related risks. This supports a shift in global
Impact driver1­financial flows toward nature-positive outcomes. Moreover, the Materiality
2
TNFD and Science Based Targets Network (SBTN) are working High
Water use
to align further to make it more efficient for corporates to apply
Non GHG air pollutants
both frameworks.
Water pollutants
LEAP APPROACH
Nature-related risks and opportunities have never been investigated by Sika before. Therefore, in alignment with the TNFD“­getting started” guidance, Sika is building an understanding of
the importance of nature-related issues and has started gathering the required information and resources. As a start, Sika
has used the tools and resources provided by the TNFD to gain
an understanding of TNFD’s LEAP (Locate, Evaluate, Assess,­Prepare) approach:— Locate your interface with nature.
— Evaluate your dependencies and impacts.
— Assess your risks and opportunities.
— Prepare to respond and report.

1•

TNFD – Taskforce on Nature-related Financial Disclosures

2•

SBTN – Science Based Targets Network

GHG emissions
Solid waste
Soil pollutants
Terrestrial ecosystem use
1 Impact drivers are defined as a measurable quantity of a natural resource thatis used as an input to production or a measurable non-product output ofbusiness activity.

3	ENCORE (Exploring Natural Capital Opportunities, Risks, and Exposure) was developed by a partnership consisting of Global Canopy, UNEP FI, and UNEP-WCMC.
ENCORE is a tool used to assess the dependencies and impacts of different economic sectors and subsectors.
4	This tool was used as an additional screening source to ensure the comprehensiveness and consistency of the ENCORE screening.
5	• Aqueduct World Resources Institute6	IBAT (Integrative Biodiversity Assessment Tool) offers visual screening of critical biodiversity and provides geographic data linked to global databases on protectedareas, the IUCN red list of threatened species, and key biodiversity areas.
7	ENCORE uses a classification of production processes per sector. The production processes of the specialty chemicals sector were evaluated to be the most relevant
for Sika. As such, all products produced by Sika were assumed to fall within this sector.
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Dependencies on nature are evaluated by considering the ecosystem services and the flows of benefits to people and theeconomy that are relevant for the organization’s business model.
Similar to impacts, ecosystem services can be screened with asector-specific lens. As with impacts, all moderate, high, and very
high dependencies on ecosystem services will be considered forthe further assessment in alignment with the LEAP approach.
Based on the analysis, two ecosystem services are material for
Sika’s direct operations:— Direct Physical Inputs.
— Protection from Disruption.
Direct physical inputs are inputs needed for production that derivefrom an environmental asset. The specialty chemicals sector canbe considered highly dependent on both groundwater and surface water. Production processes within the sector benefit fromclean water. This clean water is provided by ecosystem services
groundwater and surface water. Also, ecosystem services thatprovide protection from a disruption to the production processes
were recognized as material for the sector. Among these services,
flood and storm protection can be considered as a moderate dependency. Various natural habitats and the planted vegetation
within are able to shelter and buffer the impacts of floods andstorms and thus provide a benefit to the sector.
As a second step, the WRI Aqueduct and IBAT tools were used
to prioritize Sika’s locations of direct operations 1. Three criteria –baseline water stress 2, proximity to key biodiversity areas 3, andproximity to protected areas 3 – were chosen to identify sensitive locations. After screening the company’s sensitive locations
accordingly, further work will be needed to identify, quantify,
and assess the potentially material nature-related impacts anddependencies at these locations. Subsequently, this materiality
assessment can be used to understand the main nature-relatedrisks and opportunities.
In the coming years, Sika will further investigate the magnitudeof impacts and dependencies at these sensitive locations and willleverage the LEAP process to understand the key nature-relatedrisks and opportunities. Sika will further develop a nature-related
risk assessment and work towards integrating various elementsof the TNFD framework.

1	Value chain locations have not yet been considered but will be investigated in the future, to expand the analysis on nature-related risks and opportunities.
2	Assessment based on the Aqueduct Water Risk Atlas. For more information on water stress, please see the “Planet” chapter, “Water Management” section on
p.92 of the Sustainability Report 2023.
3	Assessment based on the IBAT Tool.

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AIR EMISSIONS 1
GRI 3-3

GRI 305-7

All local companies must comply with applicable laws and regulations related to air emissions parameters. Air emissions aremonitored by Sika as part of its legal obligations. This topic ismanaged directly by local operation facilities in accordance withlocal regulations and internal guidelines. In 2022, the calculation methodology of air emissions indicators was reviewed andupdated. For more information, please refer to the Sustainability
Report 2022.

AIR EMISSIONS
in tons

2021

2022

2023

Nitrogen oxides (NOx)

482.1

245.4

208.5

Volatile organic
compounds (VOCs) 1

69.5

194.8

175.2

Dust PM 10

31.9

172.9

159.6

72.8

125.5

113.1

2

Carbon monoxide (CO)Sika monitors the following air emissions parameters:
Sulfur oxides (SOx)
3.6
1.9
2.1
— NOx, SOx, and CO emissions are based on and limited tothe combustion of fuel and gas. The decrease of NOx emis- 1 In 2022, VOC reporting was extended to include emissions from thesions (–15.0% compared to 2022) is driven by the update ofpetrochemical materials and related processes. 2020 and 2021 data havenot been restated accordingly.
emission factors and by the stable consumption of diesel
compared to other fuels in 2023. The slight increase of SOx 2	In 2022, dust reporting was extended to include emissions from the mortar
production. 2020 and 2021 data have not been restated accordingly.
emissions (+8.0% compared to 2022) is related to the updateof emissions factors and to higher volumes of vehicle fuel –biodiesel, ethanol and Liquified Petroleum Gas during theyear. Carbon monoxide decrease (–9.9% compared to 2022)
is mainly driven by the update of emission factors.
— Besides calculating VOC emissions originating from the combustion of fuel and gas, the VOC report also includes the quantification of VOC emissions from petrochemical materials andrelated processes. Average intensity per ton produced was
calculated based on the 2022 survey. This average intensity
is extrapolated to similar plants based on factory segments 2.
A similarity between factories in the same factory segment isassumed. VOC emissions decreased by –10.3% compared to2022, mainly driven by a change in product mix.
— Dust reporting includes a quantification of dust emissions
from the mortar production. Average intensity per ton produced was calculated based on the 2022 survey. This averageintensity is extrapolated to similar plants based on factory
segments. A similarity between factories in the same factory
segment was assumed. Dust PM 10 emissions decreased by–7.7% compared to 2022, mainly driven by the update of emissions factors related to fuel combustion.

1	The calculation of air emissions related to the combustion process of Sika fuel and gas consumption is based on the emission factors of the UK National Atmospheric
Emissions Inventory (NAEI) and Swedish Environmental Protection Agency (EPA). In 2022, Sika updated the conversion factors related to primary energy from m3 to GJ
to reflect the gross CV (calorific value) based on Defra/BEIS recommendations. It has an impact on the calculation of air emissions from 2022 onwards. 2021 is notrestated accordingly. MBCC entities and Thiessen Team USA have been excluded from consolidated 2023 disclosed figures in this section.
2	The allocation of a manufacturing site to a particular factory segment depends on the type of production equipment required for the manufacturing technology andproduct technology (chemical and physical properties). Mortar production facilities have been excluded from the extrapolation since we assume that VOC emissions
are not material in this production process. This assumption was verified with cross-checks with the largest mortar factories.

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ENVIRONMENTAL COMPLIANCE
GRI 2-27

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Environmental compliance is a material topic for Sika operations ISO 50001 – ENERGY MANAGEMENT SYSTEM
across all regions. However, regulations related to the environ- CERTIFICATION
ment vary widely between regions and countries. Sika therefore in numbers% of sites covereddelegates the responsibility for environmental compliance to the30 30
6operating subsidiaries. Each site strictly adheres to the applicable
5%25
legislation on environmental matters.
5
25
4%
20
ENVIRONMENTAL AND ENERGY MANAGEMENT SYSTEMS
420
In 2023, among 724 Sika sites under ISO scope 1:
153%— 43% were certified according to ISO 14001 ( • Table 20: 15
3
ISO 14001 – Environmental Management System Certifica10
tion, in the “Key Performance Indicators” section at the end 10
2of this chapter). The percentage of certified Sika locations
5
1
significantly decreased due to the acquisition of MBCC. The 5
subsequent integration process will start in 2024.
0
2021
2022
2023
— 4% were certified according to ISO 50001 ( • Table 21:
ISO 50001 – Energy Management System Certification, in
the “Key Performance Indicators” section at the end of this NON-COMPLIANCE WITH ENVIRONMENTAL LAWS
chapter). The number of certified Sika sites is stagnating due AND REGULATIONS
to the change of focus.
Sika strives for full legal and regulatory compliance with allenvironmental regulations. It maintains a Corporate Management System (CMS) that applies to all locations and employees
ISO 14001 – ENVIRONMENTAL MANAGEMENT SYSTEM
and fulfils the requirements of ISO 14001 and ISO 50001. Sika
CERTIFICATION
companies implement their local Sika Management Systems
in numbers% of sites covered
360
based
on the CMS and local regulatory and legal requirements.
60
300
Newly acquired companies are integrated under the CMS. The
48%
49%
300
CMS is maintained by the corporate Quality and EHS function
50
250
43%
and deployed through a network of Quality and EHS profession240
als throughout the organizations. Both the CMS and local Sika
40
200Management Systems are audited by external parties as part of180
the ongoing ISO certification efforts. Internal audits and regular30
150
EHS reviews support the continuous improvement of the CMS
120
and its implementation.
20
100

60
0

10

50

2021

2022

2023

1	Considered under ISO scope are: headquarters, plants, warehouses, and technology centers. Sales offices, administrative offices, training centers are excluded asthese activities do not fall under the scope of respective ISO standards.

SIKA SUSTAINABILITY REPORT 2023
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All GMs stated in their 2023 ESG Confirmation that no significant
violations 1 of environmental laws and regulations occurred within
their entities, with one exception in Chile. On July 28, 2023, Sika
Chile reported to the National Forestry Corporation CONAF (Government agency) an involuntary violation of the Law n. 20.283/08
on Native Forest Recovery and Forest Promotion. At the timeof this report, Sika Chile has already met with CONAF and areagreeing on a reforestation plan in a defined place in the samecommunity which should be implemented in 2024. The timelineof the restoration plan has not yet been defined by the authority.
In 2023, Sika recorded one tier 1 process safety event resulting
in an extensive fire and the subsequent destruction of a factory. Nine further significant inci­dents 1 occurred: three process
safety events, three spills, and three notifications to authorities.
Process safety events and spills were contained locally withoutcausing any environ­mental damage. The increased number ofcases reported in 2023 is partially due to the complete rollout of
Sika’s global incident management system, leading to increased
awareness and reporting of loss of containment and spills.
SIGNIFICANT INCIDENTS
in numbers

Significant incidents

2021

2022 1

2023

2

5

10

1	Restatement of 2022 figure to account for the resolution of a 2021 US EPA
final order which resulted in a fine in 2022.

1	An incident (spill, environmental incident or emissions release) is considered significant when reported to authorities, having media coverage, or creatinga significant cost (above CHF 2,000).

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KEY PERFORMANCE INDICATORS 1
TABLE 01: GHG EMISSIONS SCOPE 1 AND 2 – MARKET-BASED•

Scope 1 (tons of CO2eq)

2021

2022

2023

156,419

156,096

160,463

Scope 2 – Market-based (tons of CO2eq) 2

82,08974,55784,966

Total GHG emissions (tons of CO2eq)

238,508

230,653

245,429

17.6

16.4

15.7

1

GHG emissions intensity (kg CO2eq per ton sold)1	Scope 1 GHG emissions (direct energy and fugitive emissions) are calculated based on Defra/BEIS, 2022 emission factors.

2 For scope 2 market-based GHG emissions, purchased electricity covered by energy attribute certificates is considered with an emission factor of zero. For non-renewablepurchased electricity, residual mix emission factors are gathered from AIB 2021 European Residual Mixes (applied to European locations) and 2022 Green-e Residual
Mix Emissions Rates (applied to US locations). The location-based 2022 emission factor from the International Energy Agency (IEA) is applied to all other locations.
Scope 2 emissions related to district heating are based on Defra/BEIS, 2022 emission factors.

TABLE 02: BREAKDOWN OF SCOPE 1 GHG EMISSIONS PER REGION•

in tons of CO2eq

2021

2022

2023

EMEA

81,75575,891

79,368Americas46,93749,37653,536

Asia/Pacific

16,027

19,09816,378Global Business

11,70011,724

11,174–7

7

156,419

156,096

160,463

Corporate Services
Group

TABLE 03: BREAKDOWN OF SCOPE 2 GHG EMISSIONS – MARKET-BASED PER REGION•

in tons of CO2eq

2021

2022

2023

EMEA

9,849

11,922

26,815

Americas25,377

21,333

17,526

Asia/Pacific

33,15232,18633,365Global Business

13,711

9,114

7,259

–

2

1

82,08974,55784,966

2021

2022

2023

156,419

156,096

160,463

Corporate Services
Group

TABLE 04: GHG EMISSIONS – LOCATION-BASED•in tons of CO2eq

Scope 1
Scope 2 – Location-based
Total GHG emissions

1

159,157

160,351

173,722315,576

316,447

334,1851	Scope 2 location-based GHG emission factors are gathered from US EPA eGrid 2021 Emission Rates (applied to US locations) and IEA Emission Factors 2022
(applied to all other locations).

1	Acquisitions that occurred in 2023 did not lead to a restatement of 2021 and 2022 indicators disclosed in this section except when stated specifically. Water indicatorsfor 2021 and 2022 disclosed in this section have been restated due to a stricter application of internal reporting rules for groundwater volumes withdrawn used forcooling processes in one factory.

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TABLE 05: BREAKDOWN OF SCOPE 2 GHG EMISSIONS – LOCATION-BASED PER REGION•

in tons of CO2eq

2021

2022

2023

EMEA

48,98545,83548,453

Americas36,34933,15739,068Asia/Pacific

45,62054,62759,520Global Business

28,203

26,726

26,676–6

5

159,157

160,351

173,722

2021

2022

2023

CO2 emissions from biogenic sources (scope 1)

–

1,233

1,671

CO2 emissions from biogenic sources (scope 2)

–

2,252

–

Biogenic uptake in biobased raw material (scope 3 – cat. 1)–––282,000

CO2 emissions from biogenic sources (scope 3 – cat. 12)––

55,000

Corporate Services
Group

TABLE 06: OUT-OF-SCOPE EMISSIONS 1•

in tons of CO2eq

1 Biogenic CO2 emissions related to biofuels are calculated based on Defra/BEIS 2023. Biogenic CO2 emissions related to biomass electricity (Brazil) were calculated
based on the International Energy Agency (IEA) Emission Factors. This contract is not operational anymore and therefore no emissions have been calculated for 2023.
For scope 3 category 1, biogenic uptake in biobased raw material is based on the IPCC AR6 GWP100 impact assessment. For scope 3 category 12, biogenic CO2 emissions
are calculated based on the carbon content methodology.

TABLE 07: ENERGY INTENSITY•

in MJ per ton sold

2021

2022

2023

Energy intensity

324.7

315.5

295.8

in TJ

2021

2022

2023

EMEA

1,470

1,331

1,388

Americas

819

868

944

Asia/Pacific

256

331

280

Global Business

226

220

205

TABLE 08: BREAKDOWN OF DIRECT ENERGY CONSUMPTION PER REGION•

Corporate Services

–

0.1

0.1

2,771

2,750

2,817

in TJ

2021

2022

2023

EMEA

691

668

722

Americas

398

416

458

Asia/Pacific

275

332

361

Global Business

253

264

265

Group

TABLE 09: BREAKDOWN OF INDIRECT ENERGY CONSUMPTION PER REGION•

Corporate Services
Group

–

0.2

0.3

1,617

1,680

1,806

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TABLE 10: PURCHASED RENEWABLE ELECTRICITY RATE•

Purchased electricity (TJ)
Thereof purchased renewable electricity (TJ)

1

Purchased renewable electricity rate (%) 2

2021

2022

2023

1,617

1,672

1,799

845

1,048

1,001

52.3

62.7

55.6

1	This indicator is based on 100% green contracts, Energy Attribute Certificates (EACs) such as Guarantees of Origins (GOs), Renewable Energy Certificates (RECs)
or International Renewable Energy Certificates (I-RECs) or Power Purchase Agreements.
2	This renewable rate does not consider self-produced renewable electricity. It also excludes renewable shares from local electricity grid mix.

TABLE 11: BREAKDOWN OF WATER WITHDRAWAL PER SOURCE

•

in m3

2021

2022

2023

Public supply

1,922,637

1,959,347

2,112,299

Groundwater

2,422,271

2,284,007

2,281,956

50,682

29,20051,967

Surface waterbodies
Rainwater
Total water withdrawal 1–

24,862

23,7584,395,590

4,297,416

4,469,980

2021

2022

2023

0.25

0.24

0.21

2022

2023

978,081

949,160

1,205,747

2,753,499

2,699,077

2,512,7641	Including the volume of water used as an input material.

TABLE 12: WATER CONSUMPTION INTENSITY•

in m3 per ton sold

Water consumption

1

1	The water intensity ratio is only based on process and cooling water and sanitary water. Water in products is excluded from this indicator.

TABLE 13: BREAKDOWN OF WATER USAGE PER TYPE

•

in m3

Water in products
Process and cooling water

2021

Sanitary water

674,658

649,418

760,048

Total water use 1

4,406,238

4,297,655

4,478,559

1	The difference between water withdrawal and water use is related to water storage. Rainwater is considered under water withdrawal from 2022 onwards and could
also be a source of difference between water withdrawal and water use in 2021.

TABLE 14: BREAKDOWN OF WATER DISCHARGE PER DESTINATION

•

in m3

Water to sewage
Water to surface waterbodies
Water to ground
Water sent off-site for treatment
Total water discharge

2021

2022

2023

913,590874,591

997,150

1,928,147

1,184,128

915,017438,876

1,113,542

1,168,725–

37,88464,273

3,280,613

3,210,145

3,145,165

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TABLE 15: WATER WITHDRAWAL, USAGE, AND DISCHARGE IN WATER-STRESS AREAS

•

in m3

2022 1

2023

Water withdrawal

346,364

1,002,421

Public supply

299,872

884,214Groundwater

33,062

100,505

Surface waterbodies

12,31014,138

Rainwater

1,120

3,564

Water usage

346,406

1,005,778

Water in products

219,451

647,290

Process and cooling water

40,245

117,655

Sanitary water

86,710240,833

Water discharge

105,910319,885

Water to sewage

85,233

244,443

Water to surface waterbodies

12,22032,589Water to ground

5,035

8,705

Water sent off-site for treatment

3,422

34,148

1 2022 figures as disclosed in Sustainability Report 2022 (only considering locations in extremely high water-stress areas). Data is not reworked as per 2023 assessment.

TABLE 16: WASTE INTENSITY•

Non-hazardous waste (tons)

2021

2022

2023

129,884

134,385

143,757

Hazardous waste (tons)

21,676

17,852

21,430Total waste (tons)

151,560

152,237

165,187

Waste intensity (kg per ton sold)

11.2

10.8

10.6

Waste intensity compared to total input materials (%)

1.3

1.3

1.3

in tons

2021

2022

2023

Landfill

67,50961,70164,411TABLE 17: BREAKDOWN OF WASTE BY TYPE OF DESTINATION

Hazardous waste

–

2,649

3,430

Non-hazardous waste–

59,05260,981

32,60329,07529,065–

11,085

12,111•

Incineration
Hazardous waste
Non-hazardous waste
Recycling
Hazardous waste
Non-hazardous waste
Total waste–

17,99016,95451,44861,46171,711

–

4,118

5,889

–

57,34365,822

151,560

152,237

165,187

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TABLE 18: RECYCLING RATE

•

in %

2021

2022

2023

Recycling rate

33.9

40.4

43.4

2021

2022

2023

11.6

11.9

13.0

3.7

3.2

1.9

TABLE 19: INPUT MATERIALS USED•

Volume of input materials used (millions of tons)

1

Thereof recycled input materials (%)

1	Excluding water, packaging, and semi-finished products (raw materials already processed by Sika through a first production/assembly process).

TABLE 20: ISO 14001 – ENVIRONMENTAL MANAGEMENT SYSTEM CERTIFICATION 1

•

2021

2022

2023

Sites certified ISO 14001 (No.)

275

297

313

Coverage of sites under ISO scope (%)

48

49

43

1	Considered under ISO scope are: headquarters, plants, warehouses, and technology centers. Sales offices, administrative offices, training centers are excluded asthese activities do not fall under the scope of respective ISO standards.

TABLE 21: ISO 50001 – ENERGY MANAGEMENT SYSTEM CERTIFICATION 1

•

2021

2022

2023

Sites certified ISO 50001 (No.)

17

27

27

Coverage of sites under ISO scope (%)

3

5

4

1	Considered under ISO scope are: headquarters, plants, warehouses, and technology centers. Sales offices, administrative offices, training centers are excluded asthese activities do not fall under the scope of respective ISO standards.

TABLE 22: ENVIRONMENTAL PERFORMANCE INCLUDING ACQUISITIONS FOR THE FULL YEAR 2023 1
Excluding pre-acquisition data

Including pre-acquisition data

Scope 1 (tons of CO2eq)

160,463

169,503

Scope 2 – Market-based (tons of CO2eq)

84,966

95,153

15.7

16.2

Total energy (TJ)

4,623

4,855

Energy intensity per ton sold (MJ per ton sold)

295.8

297.9

Purchased renewable electricity rate (%)

55.6

53.4

3,272,812

3,339,235

0.21

0.20

•

GHG EMISSIONS SCOPE 1 AND 2

GHG emissions intensity (kg CO2eq per ton sold)
ENERGY

WATER
Total water consumption (m3)
Water consumption per ton sold (m )3

WASTE
Total waste disposed (tons)

165,187

172,867

Waste intensity (kg per ton sold)

10.6

10.6

Recycling rate (%)

43.4

43.2

1	With the SBTi commitment and the new Strategy 2028 Sika has new baselines leading to systematic inclusion of newly acquired companies to properly reflect thedevelopment of the strategic environmental indicators over years. For 2023, it considers MBCC Group and Thiessen Team USA for the full reporting year.

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PRODUCTS AND CUSTOMERSSUMMARY & HIGHLIGHTSAMBITION

KEY FIGURES

Sika focuses its R & D activities on generating customer benefits, marketing safe
products, and adapting to the impacts ofclimate change.

INVENTIONSAPPROACH
Intensive research efforts allow Sika toaddress the demand for resource-savingbuilding methods, energy-efficient andlow-emission construction materials, highspeed manufacturing processes, modular
construction and lighter and safer vehicles.

HIGHLIGHTS
Sustainability Portfolio Management(SPM)
SPM is used by Sika to evaluate andclassify its products in market segments
in terms of both Performance and Sustainability. In 2023, 232 products were
evaluated via the new methodology.
New Intellectual Property (IP) Tool
Sika concluded the worldwide rollout
of its new IP Tool to streamline invention
submission and to ensure transparent
innovation.
“Nuage” – The Global Digital R&D Lab
Sika started to implement its concept for
digitalizing R & D processes and the workin Sika labs around the world, covering all
regions and core technologies.

188+11.9%

Change vs 2022

PATENT APPLICATIONS

108+3.8%

Change vs 2022

EMPLOYEES WORKING IN R & D

1,780+33.4%

Change vs 2022

NUMBER OF GLOBALTECHNOLOGY CENTERS 1

18–14.3%

Change vs 2022

1 In 2023, Sika reorganized its R & D facilities into Global Technology Centers (GTCs), Technology Centers with regional and area focuses, and local labs. As a consequence,
the number of GTCs decreased, and the number of local and regional R & D facilities increased. MBCC’s facilities are included in the scope.

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MATERIAL TOPICS
Innovation
Management

Product
Portfolio

Health and
SafetyRisk and Crisis
Management

Compliance

Responsible
MarketingCustomer
RelationshipManagement

SDGs

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INNOVATION MANAGEMENTGRI 3-3

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

The strategic interplay between innovation and sustainability RESPONSIBILITIES
serves as a guiding force, enabling Sika to lead the transforma- Sika’s long history of innovation has made it a recognized global
tion of the construction and transportation industries. Sustain- technology leader in many markets worldwide. The Sika innovaability is integrated into strategic and operational innovation tion culture reflects courage for innovation, creation, and knowlprocesses; at the same time, it fuels operational efficiency and edge, and the importance of networking and cross-­functional
excellence throughout the organization. In tandem, digitaliza- teamwork. Sika’s research and development activities are contion acts as a catalyst, propelling Sika to the forefront of innova- ducted by 1,780 employees (previous year: 1,334) across 18 Global
tion and sustainability. This dedication to an innovative culture Technology Centers (2022: 21) and over 100 local and regional
empowers employees to challenge the status quo and actively research and development facilities (2022: 80) 1. While investing
participate in innovation. In 2023, the innovation rate reached in its Technology Centers, the company also nurtures an interna24.4% (previous year: 22.6%). For more information concerning tional network of scientists, partners, suppliers, and customers.
Sika’s sustainability governance and the combined leadership for
Innovation and Sustainability, please see the “Sustainability at In addition, an innovation management team seamlessly inteSika” chapter on p.40 of the Sustainability Report 2023.
grates sustainability and innovation across functions, facilitating initiatives and solutions to meet evolving customer needs
COMMITMENT
and market dynamics. This team consisted in 2023 of the Global
Sika is leading the industry with its comprehensive portfolio of Innovation Manager and exploration teams in all regions to fahigh-quality, sustainable solutions. Sika’s capability to address cilitate projects and partnerships. Sika’s collaborative approachsustainability megatrends is evaluated from a life cycle perspec- to innovation management not only embraces a newly designed
tive along the value chain. The Sika brand is a worldwide symbol exploration process but also adopts a customer-centric mindset.
for technically superior, user-friendly, and long-lasting products.
Bringing innovation to life requires customer cen­tricity and cour- SUSTAINABILITY AS INNOVATION DRIVER
age. For Sika, innovation means implementing something new Sika aims to innovate products that enable sustainable conthat adds value. Sika employees drive progressive solutions that struction and transportation, reducing environmental impact
move the industry forward and show customers the value of in- along the value chain. Indeed, sustainability has become the key
novative approaches.
driver for R & D projects at Sika. It fuels the quest for alternative, renewable materials, low carbon solutions, new recycling
GOALS AND TARGETS
concepts more efficient production methods like modular buildInnovation was a core objective of the Sika Strategy 2023. Now, ing, resource efficiency, healthier and safer spaces for living andwith Strategy 2028, the integration of innovation and sustain- working, enhanced product flexibility, and digitally enhanced
ability has emerged as a compelling imperative. Innovation and solutions. In 2023, innovation and sustainability were included
sustainability are inextricably linked, and their convergence in in the curricula of various training programs due to their highSika’s corporate agendas reflects a necessity for long-term suc- strategic relevance for Sika: the Global Leadership Programs, Recess. The confluence of these two critical elements has become a gional Leadership Programs, the General Manager (GM) Program,necessity to give answers to today’s challenges in the construction and the Global Talent Training Programs.
and automotive industry. The strategic correlation between sustainability and innovation supports Sika’s journey to net zero. The CUSTOMER CENTRICITY
emphasis on durability, the development of sustainability enablers, Sika helps its customers meet their challenges by developing
the reduction of CO2 emissions, the embrace of circular economy new products in response to tighter climate-related and chemiprinciples, and the replacement of hazardous raw materials all un- cal regulations, increased sustainability awareness among
derscore the critical role of innovation in advancing sustainability their customers, and a shortage of skilled labor. Sika prioritizes
goals. Sika innovates to create value-added products that combine customer-centricity in innovation and sustainability by actively
performance and sustainability into one concept. Therefore, all engaging with customers to understand their needs and chalnew product developments are Sustainable Solutions.
lenges. Customers and market partners contribute to tailoring

1 In 2023, Sika reorganized its R & D facilities into Global Technology Centers (GTCs), Technology Centers with regional and area focuses, and local labs. As a consequence,
the number of GTCs decreased, and the number of local and regional R & D facilities increased. MBCC’s facilities are included in the scope.
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product development and solutions to address specific customer munity. It has transformed into a dynamic mentoring initiative,
requirements while promoting sustainability through sustainable with senior managers taking on mentorship roles to assist teams
materials and practices. Sika aims to deliver value-driven innova- to propel selected makers’ initiatives towards success.
tions that not only meet customer demands but also align withenvironmental and social responsibilities, fostering long-term The Sika Global Innovation Challenge (GIC) is another initiative
partnerships and sustainable growth.
to foster the innovative drive of high-potential employees. This
program prepares a new generation of innovation leaders and
INTELLECTUAL PROPERTY
embraces key change drivers such as sustainability, digitalizaThe protection of intellectual property (IP) plays a vital role in com- tion, and the circular economy. In 2023, Sika ran the second GIC
petitive markets. While inventions need to be protected against with 34 candidates from 15 countries in the context of its Talimitators, ensuring FTO (freedom to operate) for new products ent Management and its ambition to foster the innovative drive
over third party IP is important, too. To achieve the best possible of high potential. Six teams found solutions for challenges likebenefit for the Group, the patent strategy is focused on three basic digitalization/AI, raw material scarcity, removable adhesives andpillars (i) risk management and mitigation for third party patents, sealants, and sustainable packaging.
(ii) protection of new inventions according to commercial relevanceof the products/solutions, and (iii) leveraging patents to support During the reporting year, Sika also participated in hackathons forbusiness. 188 new inventions were reported in 2023 (previous sustainability and innovation as they offer a dynamic platform toyear: 168), and 108 new patent applications were filed (previous harness fresh ideas and talent. They foster sustainable solutions
year: 104). By the end of 2023, Sika’s patent portfolio included by encouraging the development of eco-friendly technologies and1,600 unique patent families with 5,680 single national patents. In processes. To harness the creative and technical talents of the2023, Sika concluded the worldwide rollout of its new Intellectual global hackathon community, Sika participated at the H­ ackZurich
Property (IP) Tool to streamline invention submission and to ensure in September 2023. This hackathon united the world’s best techtransparent innovation management. Furthermore, in 2023, Sika talents, selected from thousands of applications, representing
integrated a substantial portfolio of patents and inventions as part several elite universities and leading organizations from moreof the acquisition of MBCC and its associated brands.
than 85 countries, to collaborate and develop innovative web,mobile, and hardware applications during a 40-hour hackathon.
The result of this hackathon led to a concept for an interactive
platform connecting and synchronizing Sika’s knowledge (raw
GLOBAL DIGITAL R & D LABORATORY
data, documents, etc.) to enable communication and fast data
extraction for internal and external users. Hackathons were
In 2023, Sika started implementing its concept (“­Nuage”)
also supported in other countries. In October 2023, the secondfor digitalizing R & D processes worldwide. Nuage faciliedition of the Prontuario Sika Hackathon Awards for Industates collaboration across teams in different geogratrial
E­ ngineering and Marine Engineering students took placephies and enables researchers to conduct experiments
inM­
adrid.
Sika Spain organized and steered the hackathon, inand simulations using digital tools and technologies. The
which 56 talents took part, triggering a new wave of enthusiasm.
new global digital laboratory allows researchers to work
remotely, collaborate with others in real time, and accessa wide range of data, software, and hardware resources.
The collaboration of the Nuage project team with experts
from every core technology group and region, as well asfrom IT, procurement, operations, and technical service,
has been a prerequisite for success. After the successful completion of the pilot phase in all core technologies
and across regions, testing of performance, and security
indicators, the rollout of Nuage started in 2023; the onboarding of R & D teams worldwide continues in 2024.

PARTNERSHIPS AND COLLABORATIONS
Cross-functional collaborations within Sika, alongside partnerships with technology companies, scientific institutions, and universities, have yielded fresh insights and scientific breakthroughs.
This collaborative effort has resulted in products and solutions
that offer both enhanced performance and bring about sustainability benefits. Sika enhances its research efforts by cooperatingwith renowned universities and scientific institutions such as
ETH Zurich (Swiss Federal Institute of Technology in Zurich), EPFL
(Swiss Federal Institute of Technology in Lausanne), Universityof Pennsylvania (USA), Princeton University (USA), the Beijing
University of Chemical Technology (PRC), and similar instituINNOVATION CHALLENGES
tions across the globe. In addition, Sika’s subsidiaries cooperate
A variety of established internal initiatives challenge the status with research institutes in their local markets. An example of aquo and nurture innovation across all regions. These include successful scientific partnership on a corporate and local level isglobal and regional programs like “Shark Tanks” in Global Busi- the partnership with the University of Cádiz (UCA). In 2023, Sikaness, Innovation Challenges, and local initiatives such as the and the UCA agreed to cooperate in concrete protection, building“Sika Maker Program” in China, which consolidates the expertise facades, and industrial processes. The cooperation results fromof innovative minds throughout the organization to anticipate a successful partnership focusing on innovative techniques for
future requirements and foster the development of innovative preserving concrete structures. Now, the UCA and Sika bundle
solutions. Internal innovation pitches, so-called Shark Tanks, their knowledge on global and local levels to expand these techserve Sika as dynamic arenas, catalyzing the surfacing of novel nologies to further application areas and to open new market
ideas and their seamless implementation. In China, the so-called potential. For more information, please visit the corporate web“Maker Plan” fosters continuous ideation within the R & D com- page • Partnerships and Collaborations.

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INNOVATIONS THAT SUPPORTSUSTAINABILITY
Sika is keen to advance its own net zero targets and help its
customers along this path.
Thanks to its innovation power, Sika can significantly help reduce
global greenhouse gas emissions. Important focus areas for R & D
initiatives driving net zero include:

Advancements to reduce the use of virgin sand both in its own
mortars and in the concrete produced by its customers are madepossible thanks to Sika’s century-long expertise in chemistry.

STEEL SLAGS: THE NEXT ALTERNATIVE
SIKA’S COMMITMENT TO SUSTAINABLE EPOXY RESINS:TO PORTLAND CEMENTEMBRACING BIO-BASED SOLUTIONSThe urgency to discover alternatives to Portland cement is ­evident. Sika’s sustainability journey shows the way to a consistent comIn response to this global challenge, steel slags have emerged as a bination of sustainability and innovation. A pivotal part of thispromising alternative. Steel slag is a waste product deriving from journey is the transition to partially bio-based epoxy resins. Trasteel production and represents a slag category that so far has ditionally, the epoxy industry has relied on “fossil” epoxies, but
only been reused to a limited extent due to its chemical composi- Sika is making a conscious shift to bio-based alternatives.
tion. Leveraging Sika’s chemistry know-how, steel slag is gaining
wide acceptance as a supplementary cementitious material (SCM). The bio-based glycerin used for epichlorohydrin synthesis is a
What makes it particularly attractive is its abundant availability by-product of biodiesel production and primarily derives fromof over 180 million tons each year. The geographic availability of waste oils, leftover cooking fats from large kitchens, rapeseed
this waste material aligns well with the footprint of Sika’s mortar oil, and other vegetable oils. This shift not only reduces relianceplants, facilitating seamless integration into their formulations. on fossil resources but also paves the way for more sustainable
manufacturing processes.
Until now, steel slag has been downcycled and primarily usedin soil remediation and road construction. However, with Sika’s In 2023, Sika successfully produced flooring coatings with epoxy
chemistry expertise, it is now possible to incorporate it into vari- resins containing 28% of bio-based carbon. This commitment toous categories of Sika mortars without any negative impact on sustainable epoxy resins not only signifies a substantial reducperformance, opening new horizons for sustainable construction. tion in Sika’s reliance on fossil resources but also underscores
Notably, 11 patents have been applied for, indicating Sika’s com- Sika’s unwavering commitment to environmental responsibility.
mitment to innovation in this area. The environmental benefitsof this shift are substantial. By embracing steel slag-based SECURED ROOF WATERPROOFING
binder technology, Sika plans to save an estimated 135,000 to OVER THE ENTIRE LIFE CYCLE
180,000 tons of CO2 emissions each year, horizon 2028. This Sustainability and durability meet innovation with Sarnafil® AT
projection assumes 20% to 25% of ceramic tile adhesives using FSH Self-healing technology, revolutionizing roofing membranes.
this waste material in their formulations. As the world grapples Water-reactive polymers power this remarkable advancement,with the pressing need for sustainability, solutions like steel offering autonomous healing for roofs, safeguarding valuableslag-based binders provide a crucial avenue to reduce the carbon assets. Sarnafil® AT FSH Self-healing membranes feature water-­footprint of construction materials.
reactive polymers, triggered by water contact, sealing minor cracks
and punctures. This hydrophilic technology efficiently prevents
SECURING ALTERNATIVES TO NATURAL SANDS:
further moisture ingress, contributing to durable product perforEXAMPLE CHINA
mance, reliability, and extended building life. The new technology
Sika China has strongly progressed in reducing the use of virgin is ideal for environments where water damage is critical, such as
sand. In 2023, a 13% alternative sand ratio was achieved, up data centers, museums, and pharmaceutical facilities. Even whenfrom 5% in 2021. The goal, by 2028, is to reach a 50% alternative water intrusion occurs, it self-seals, minimizing disruption andsand ratio, which is a significant reduction in natural sand us- ensuring peace of mind for building owners.
age. To meet this goal, several initiatives and actions have been
implemented. For instance, the team developed manufactured Sika Sarnafil® AT Self-Healing is part of the Sarnafil® AT productsand to supply two tile adhesive plants in G
­ uangzhou; and ad- line. Notably, Sarnafil® AT was the first thermoplastic roofing
ditionally tailing sand was developed to serve as a raw material membrane in the market to be Cradle to Cradle Certified™, underfor a new plant. Currently, half of Sika’s tile adhesive plants in scoring Sika’s commitment to the circular economy. In the year
China are already using alternative sand. Two plants have made under review, Sika successfully completed the Cradle to Cradle®
remarkable strides, replacing 100% of virgin sand with tailing re-certification for Sarnafil®-AT. Sika has held a valid certificate
sand. Sika works on different initiatives worldwide to reduce the since 2020.
use of virgin sand. Another key advancement in this regard is
the ability to utilize sand derived from recycling processes. For
example sand derived from Sika’s ­reCO2ver® ­technology or fromconcrete mud – the unhardened waste concrete from trucks andconcrete factories.

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PRODUCT PORTFOLIOGRI 3-3

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

At Sika, the strong commitment to developing sustainable solu- Following the 2022–2023 pilot, Sika launched an e-learning
tions has a central focus, evident in both the Strategy 2023 and program and guidelines for company-wide SPM adoption.
the Strategy 2028. It is also reflected on all levels, from company ­Applicable to all products, the methodology facilitates fact-based
level down to product groups and individual products. For this communication, allowing Sika to promote products under thereason, the communication message for Sustainable Solutions “More Performance – More Sustainable” and “More Sustainable”
encompasses two distinct levels which belong to the same overall brands. Integrated into the Product Creation Process (PCP), SPM
scope, underlining sustainability as a central topic at Sika:evaluations occur early and before market release, providing a— Company level: “Sika as enabler of sustainable construction standardized approach for efficient product development andand transportation”. This message highlights Sika’s brand informed decision-making.
positioning and its commitment to continuously measure, improve, and report sustainable value creation for its The initial SPM Evaluation in the PCP aims to identify potenstakeholders.
tial risks and benefits, guiding product development toward— Product level: “More Performance – More Sustainable” and improved sustainability and performance. As projects progress,“More Sustainable”. These messages apply for products which data quality evolves from qualitative to quantitative, requiring
have an approved SPM Profile and are classified with a posi- robust evidence for comprehensive sustainability assessments.
tive sustainability rating.
SPM Evaluations focus on the Product – Technology – ­Application
Combination (PTAC) segmentation approach, ensuring a conSUSTAINABILITY PORTFOLIO MANAGEMENT (SPM)
sistent approach within defined market segments. The SPM­METHODOLOGY
Methodology follows a four-step approach.
Managing innovation and sustainability together, minimizing therisks, maximizing the opportunities, and creating positive business impact: This is the purpose of Sika’s Sustainability Portfolio
Management (SPM) Methodology. The company’s goal is to de�velop and market Sustainable Solutions combining performanceand sustainability benefits.
Sika’s SPM Methodology is based on the World Business Coun�cil for Sustainable Development (WBCSD) Chemical Industry
Methodology for Portfolio Sustainability Assessments (PSA) 1.
Externally validated in 2021, it covers key aspects such as circularity, safety, climate, and more, merging sustainability andperformance into one concept. Sika is one of the first companies
within the specialty chemicals and building materials sector todevelop and rollout a methodology based on the WBCSD PSA
framework. In addition, SPM was selected in the 2023 Responsible Care Awards as a showcase in the European Chemical Industry
Council (CEFIC) online gallery 2.

1  • Chemical Industry Methodology for Portfolio Sustainability Assessments (PSA) – World Business Council for Sustainable Development (WBCSD)
2•

Sustainability Portfolio Management – cefic.org

SIKA SUSTAINABILITY REPORT 2023
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116THE SPM FOUR-STEP APPROACH
1. SEGMENTATION
Products are evaluated and classified in specificsegments. This segmentation determines thecontext of its unique technology and application
combination.

SUSTAINABILITY CATEGORIES

2. SUSTAINABILITY
Evaluation of the product against the range of
criteria covered under 12 different Sustainability
Categories (SPM sustainability profile).

3. PERFORMANCE
Evaluation of the product against the range of
criteria covered under 6 different Performance
Categories (SPM performance profile).

Supplier
Sustainability

Chemical Hazard
and Exposure

Reputational andBusiness Risks

Regulatory Trends
and Forthcoming
Regulation

ClimateAir Quality andEmissions

EnergyHealth and
SafetyResources andCircularity

PackagingGreen BuildingStandards

Cost Savings
Downstream

PERFORMANCE CATEGORIES

4. CLASSIFICATION
The final step combines the results of steps 2 and 3
into the final product classification (SPM Profile).

Technical
Performance

Durability

Application
Performance

Esthetics /OpticsCost
Performance

Others

SPM evaluations are executed by interdisciplinary teams, includ- The objective of applying Sika’s SPM Methodology is to develop
ing representatives from the key functions identified as rating a portfolio of classified products within given PTACs. In the longresponsible within each of the 12 SPM Sustainability Categories term, applying this methodology will enable Sika to sistematicallyand 6 SPM Performance Categories.
evaluate the Sustainability and Performance of its products andto strategically steer its product portfolio towards Sustainable
The outcome of the SPM Evaluation is a portfolio view of the Solutions due to its integration within Sika’s innovation process.
assessed product in the corresponding segment (PTAC). The
aim of this portfolio is to develop a deeper understanding of the For more information on the SPM Methodology, please see thesustainability and performance characteristics of Sika’s products • Sika Sustainability Portfolio Management Methodology
and to transition to an offering solutions with a proven sustain- ­Paper available in the download center of the corporate website.
ability performance. This portfolio view enables the clustering ofproducts into six clusters, with three positive, one neutral, and At the end of the reporting year, Sika had conducted 232 SPM
two negative clusters.
evaluations, of which 85 were finalized, resulting in 3 productswith a negative classification, 16 with a neutral classification, andA Governance structure has been established to evaluate the next the remaining 66 with a positive one (Clusters A, B, and C) – out ofsteps following the final product classification resulting from an which 56 in Cluster A. 147 are still ongoing. For examples of prodSPM Evaluation. This process defines the key actions that need ucts please check the • Sustainability Portfolio M­ anagement
to be taken depending on SPM Profile as an outcome of a product on the corporate website.
SPM Evaluation.
Products with a positive sustainability rating (Clusters A, B, and C)
can be promoted as Sustainable Solutions. Products classified in
Cluster A can additionally be promoted as “More Performance –More Sustainable” with a dedicated branding. Sika’s objective isto transition all products and developments towards Clusters A,
B, and C and to minimize products classified in Clusters E and F.

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SUSTAINABLE PRODUCTS ASSESSMENTS
LIFE CYCLE ASSESSMENT
In 2023, Sika developed and implemented a new capacity building strategy to support the organization’s growing need for
product sustainability assessments, with a core focus on Life
Cycle Assessment (LCA) and the evaluation of product-related
climate change impacts.
The strategy transforms Sika’s approach to building global capacity with the integration of three new pillars: corporate competence center, regional specialist network, and global automation
pathways.
The first two pillars were extensively developed during the reporting period. Within the corporate competence pillar, a comprehensive range of guidelines, tools, training, and collaboration
spaces were created to support the new regional network of
product sustainability specialists. The network was also staffedwith 22 new specialists from across the organization, covering
all regions. The new network will be equipped with the skills,
tools, and training needed to undertake product sustainability
assessments such as LCA, Product Carbon Footprint (PCF), andEnvironmental Product Declarations (EPDs). Members of the
network in Sika’s R & D departments strengthen the focus on developing Sustainable Solutions in line with Sika’s Sustainability
Strategy. The establishment of the new network will enable Sika
to be more agile in responding to increasing customer requests
for transparent, product-related environmental information.
The focus for the following years will be to fortify the first two
pillars and additionally develop automation strategies to further
amplify Sika’s capacity in product sustainability.
ENVIRONMENTAL PRODUCT DECLARATION
In 2023, Sika concluded its first Environmental Product Declaration (EPD) automation project. The project aimed to support
local Sika organizations in meeting growing customer demandfor EPDs of concrete admixtures. This is in the context of thegrowing pressure exerted on concrete producers to reduce theenvironmental impacts per cubic meter of concrete, producing
the need for more transparent product-related data, including
data from admixture manufacturers.
Sika initiated the project in 2021 with the goal to partially automate the procedure for creating EPDs for a group of six concrete
admixture families by means of a custom software application.
A comprehensive parameterized model was built and configured,
allowing users to work with a smooth data collection procedure to
generate streamlined LCA results that can be integrated into an
EPD report. Throughout the year, users spanning all Sika regions
were trained to use the tool and create product-specific EPDs oflocal admixture formulations. With this new solution, Sika aims
to massively increase its ability to generate product-specific EPDs
for concrete admixtures.
Sika will investigate the applicability of the solution for otherproduct technologies in the coming year.

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PRODUCT SAFETY, QUALITY, AND RELIABILITYGRI 3-3

GRI 416-1

GRI 416-2

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Sika has always placed a strong focus on product quality and reli- (customer safety), application (customer safety), use-phase (cusability. The Sika triangle – a symbol more than 100 years old – is tomer safety), and finally end of life (customer safety). 100% ofsynonymous with performance, quality, reliability, and service. Sika chemical products are assessed for their impact on healthThis is emphasized by the corporate claim: Building Trust. Prod- and safety. 100% of Sika products are safe and do not harm huuct governance at Sika involves maintaining product quality and man health if handled according to the instructions in the SDS
safety, responsibly communicating safe handling procedures for and PDS.
chemicals to customers, accurately labeling chemical products,
and marketing products responsibly.
RESPONSIBILITIESSika products must be accompanied by an SDS in compliance
PRODUCT SAFETY AND PRODUCT LABELINGwith the country’s legal requirements and in the required local
Sika’s assessment and improvement of the health and safety language when distributed or sold. Packaging and labeling must
impacts of its products is state-of-the-art. The company utilizes meet local compliance standards, as well as the Sika branding andglobal Product Compliance software with one common database, labeling rules. The company creates, maintains, and publishes
product stewards for all finished goods categories, trainings for SDS, using the global Product Compliance System. To safeguard
all local users, benchmarking, and quality control. Sika’s manage- legal compliance and customer safety, the requirement for all
ment strives to avoid any negative impact on customer health local Sika companies is that the SDS shall not be older than twoand safety through its products. Precautionary measures are years. This is monitored by Global Regulatory & ­Product Complitaken to mitigate risks related to product safety. Sika issues ance and reported quarterly to all responsible Area Managers,
documentation about occupational safety, how to wear safety General Managers, Regional Operations Managers, EHS Managers,
equipment, and the safe transportation and storage of goods. All and Product Stewards. In 2023, no instances of non-complianceproduct information, specifically Safety Data Sheets (SDSs) and with Safety Data Sheets were reported 1.
Product Data Sheets (PDSs), are reviewed regularly. Informationon the SDS of individual products can be found on the website CORPORATE LEVEL
of the local Sika companies.
The Global Regulatory & Product Compliance (RPC) team, which
reports to Head Global Quality & EHS, is responsible for providing
COMMITMENT
a globally compliant database and classification system (SAP
Sika is committed to managing chemical product compliance in Product Compliance), to support regions in setting up and dea careful and diligent way, as highlighted in its mission state- ploying RPC processes, and to exchange information on emerging
ment: “We want to assume our responsibility for safety and the regulatory developments. 310 representatives in regional andenvironment along the entire value chain. We are committed local organizations from 120 Sika companies use SAP-Productto considering all requirements and obligations arising for sub- Compliance. Furthermore, the team is responsible for productstances used in our products.” When formulating products, the health and safety-related data being available, correct, and concompany only uses raw materials that comply with all relevant tinuously updated. It coordinates the classification of products
regulations, and that have been thoroughly assessed for their according to regional and international regulations and the monihealth and safety impacts.
toring of new hazards of raw materials.
The Global Product Stewardship team, which is part of the Global
GOALS AND TARGETS
Regulatory & Product Compliance team, is responsible for:Sika’s goal is to test all raw materials used as product compo- — Training and supporting all regional and local Product Stewnents, as well as all chemical products for their health and safetyardship functions and Regulatory Product Compliance teams.
impact during transport, storage, production, distribution, andTraining programs and workshops are specifically held for theuse. The company makes sure that all products comply with all
local Product Stewards and Regulatory Affairs Managers inchemical regulations and legal requirements along the entire
all regions and areas, at least every two years.
value chain. From product development to the selection and pur- — Monitoring the raw material database and the chemical subchase of raw materials, and then to their handling and manufacstance database that serve as the basis for product composituring of products (workplace safety of employees), packaging
tion and the preparation of Safety Data Sheets (SDS) and labels.
of products (transport safety), shipping to customers (transport — Acting as a support center for the Globally Harmonized Syssafety, dangerous goods regulations, customer safety), storagetem (GHS) of Classification and Labeling of Chemicals.
1 Based on the data collected through the ESG Confirmation.
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— Monitoring Sika Substance Risk Management Rules and thelist of hazards and restrictions to be shared with the concerned Sika unit.
— Maintaining and updating rules for SDS creation, dangerous
goods management, and label information.
— Providing global product stewardship solutions, including
SAP Product Compliance with global content and algorithms,
specific analysis and calculation tools, regular performanceoverview (KPIs), process descriptions and manuals, etc.

— Approving local labels and local SDS, packaging, entry of local
raw materials and finished goods data into the databases.
— Supporting local organizations in all product safety-related
matters.
— Supporting customers regarding their demands on productsafety.
— Implementing and enforcing the Sika Banned Substance Process by conducting regular screening of the existing productportfolio.
— Ensuring that Sika products (except non-chemical products)
The Global Regulatory Affairs team, which reports to the Global
are accompanied by an SDS, meeting the legal requirements
Regulatory & Product Compliance (RPC) team, oversees theof the country and translated into the required language(s).
compliance of the Sika Group with regulations in chemicals — Ensuring that packaging and labeling are controlled andlegislation. More specifically, the team supports local line manmanaged for local compliance, and compliance with the Sika
agement, which has overall responsibility for ensuring that allbranding and labeling rules.
products manufactured and/or brought to market comply withlocal regulatory requirements. In cooperation with corporate TRAINING
functions (R & D, Procurement, Marketing, Operations, Target Regular internal training and education for local Product StewMarkets) and with Corporate and local Expert Teams, the Global ards and Regulatory Affairs Managers is provided in all regions
Regulatory Affairs team defines and initiates tasks, programs, and areas at least every two years. Such trainings update local
and compliance projects. It coordinates activities to comply with teams on regulations, on the Globally Harmonized System (GHS)
chemicals legislation and enables the production and marketing of Classification and Labeling of Chemicals, and on the impact ofof products in the countries through notification and registra- the Product Compliance Reporting tool. In 2023, the global Prodtion activities. It also provides support in the form of chemical uct Stewardship team organized 51 trainings, involving 696 Sikaand regulatory advice. Based on cost-benefit analysis, and in employees from various functions (Product Stewardships, Regucooperation with the R & D functions and external consultants, latory Affairs, EHS, Risk & Crisis Management, Marketing, andthe team prepares registration dossiers for the inclusion of sub- R & D) in all Sika regions: 10 trainings in EMEA; 11 in Asia/Pacific;
stances and products in local registries.
19 in Americas; and 11 in Global Business.
The Substance Risk Management (SSRM) Committee 1 is com- ASSESSMENT OF THE HEALTH AND SAFETY IMPACTS
prised of members from Product Stewardship, Regulatory Affairs, OF SIKA PRODUCTS
Sustainability, and R & D. The Committee assesses substances Sika is committed to continuously improving the safety and enwith an elevated risk potential based on the GHS classification. vironmental sustainability of its products and operations. Thisis achieved by working internally on procedures, informing and
REGIONAL LEVEL
educating product users through safety data and worker proThe regional Regulatory & Product Compliance team is respon- tection requirements, reducing hazardous chemicals, solvents,
sible for rolling out RPC processes, querying local requirements, volatiles, and reactive components wherever possible, and using
and supporting countries in setting and targeting RPC objectives, devices for safe contact-free application. In 2023, all entities ofas well as organizing training and development programs. The the Sika Group were compliant with applicable regulations andregional Product Stewardship team is responsible for data main- did not report any significant incidents concerning the health andtenance and classification of regional/area raw materials and safety impact of products 2.
products, creation of SDS and label information, support for label
creation in certain areas, and checking and notifying modifica- A central corporate REACH and Chemical Regulatory Departtions of chemical substances.
ment (the Regulatory & Product Compliance Team) coordinates
all corporate activities, covering the requirements of the Globally
LOCAL LEVEL
Harmonized System (GHS), Classification, Labeling and PackagThe responsibility for the products sold in the individual Sika ing (CLP), as well as other relevant chemical legislation to ensure
countries lies with the local organizations, and ultimately with the protection of human health and the environment from risks
the General Manager. With support from the global and regional that can arise from chemicals.
Product Stewardship teams, local line management has theoverall responsibility for ensuring that all products placed on As part of Sika’s commitment to manage chemical productthe market meet local legislation requirements, as well as as- compliance, potential water pollutants such as synthetic orsigning a Product Stewardship role to manage raw material and ganic compounds are identified and classified by suppliers or byfinished goods data, customer safety information, and labeling. Sika according to the CLP regulation. Sika strives to minimize
In particular, the local Product Stewardship team ensures that all adverse impacts of such potential pollutants during the productproducts follow the Sika Global Regulatory Product Compliance use-phase. Best practice instructions on product use are docu(RPC) rules and is responsible for:mented and issued in SDSs and PDSs.
1 In 2023, due to a new organizational set up, the Steering Team Banned Substances (please see the Sika Sustainability Report 2022, p.127) was renamed theSubstance Risk Management (SSRM) Committee.
2 Based on the data collected through the ESG Confirmation.
SIKA SUSTAINABILITY REPORT 2023
Products and customers120Sika maintains a comprehensive Product Stewardship process DEFINITION OF SUBSTANCES OF CONCERN
and network, including a database for impact assessments, toxi- Substances falling under the “SSRM” definition must be checked
cological evaluations and product registration, classification, and for replacement by alternative substances in all processes delabeling.
fined in the Sika Product Creation Process (PCP) and processes ofRegulatory & Product Compliance. Based on the classification of
CHEMICAL SUBSTANCES RISK MANAGEMENT
the Globally Harmonized System (GHS), “Substances of Concern”
Sika has a comprehensive risk management system structured are divided in two main categories:
at Group level which is effective for all its subsidiaries. Risks are — Category 1: substances which shall not be used in any products
identified at an early stage and integrated into strategic decisionsold (both manufactured and trading products), materials
making processes. As part of the Enterprise Risk Management
handled in manufacturing plants, or in the supply chain. Only
(ERM), reviewed and approved by the Board of Directors (BoD)
substances used for R & D purposes are exempt.
yearly, the risk “Changing Product Compliance requirements and — Category 2: substances which may be used in controlled
regulations” was confirmed to be one of the top risks. The risk
manufacturing processes if the defined concentration limits
is defined as “Changing product compliance requirements forare not exceeded in the final product.
products, product solutions, production processes, and procurement, driven by changing customer requirements and regula- REGULATORY LANDSCAPE
tions”. In the due diligence process for acquisitions, the teams Sika continuously follows regulatory, scientific, and toxicologicalinvolved, such as EHS, Product Stewardship, and Legal, collect developments on chemical substances. This also provides theinformation including material management and environmental company with early knowledge of future regulatory changes andcompliance. Potential acquisitions can be stopped if the analysis requirements. These are discussed in Sika’s expert teams withof a company’s product portfolio does not meet the necessary Research & Development, Marketing, Operations, Procurement,
requirements. For more information on the risk management and Product Stewardship, and appropriate steps for substituapproach, top risks, and related measures, please see the “Risk tion are coordinated with all process participants. Sika is also
Management and TCFD Recommendations” chapter, on p.22 of taking part in several meetings and public consultations throughthe Annual Report 2023.
associations (FEICA, CEFIC) to monitor the developments of upcoming regulations within the European Union Chemical Strategy
HAZARDOUS SUBSTANCES
for Sustainability (EU CSS) on topics like restrictions roadmap,
A wide range of chemicals are used in the formulation of Sika’s review of REACH regulation, Classification, Labeling, Packaging
products. This includes hazardous chemicals 1 which are funda- (CLP) reform, grouping approach, etc. The same procedure is folmental to achieve the technical requirements such as loadbearing lowed by the local organization in all Sika regions.
strength and longevity of buildings and structures. The company
aims to reduce these substances from products and production
processes wherever possible.
In 2023, the company reviewed the Sika Banned Substance
Process, with a view to accelerate progress in this importantarea and continue to review and assess the use of substancesof concern. As a result, Sika introduced the “Sika Substance
Risk Management (SSRM)” process. The latter, which applies at
Group level, supports the organization in assessing and treating
substances with an elevated risk potential based on the Globally
Harmonized System (GHS) hazard classification. This internal
process is complementary to local legal requirements, emphasizing Sika’s uncompromising commitment to quality, safety, andenvironmental sustainability.
Moreover, the Sika Substance Risk Management (SSRM) Policy
regulates the use of defined hazardous substances in Sika operations and in products. Depending on the category, Sika prohibits
or restricts the use of these substances in products above a defined concentration limit. Use in production is subject to specificpermits.

1 Classified as “hazardous” by a regulatory authority.

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STRATEGY 2028
substances are being evaluated. In 2023, the involved products
Within the framework of Strategy 2028, starting from 2024 on, generated less than 0.5% of total sales. Within the Strategy 2028
Sika has clearly stated the ambition to reduce usage of hazardous a further reduction of these substances is targeted.
materials and define a reduction plan for selected substancesof concern. Moreover, it has defined the target “All new product In the past, for instance, following this approach, Sika initiateddevelopments to be SPM validated with a positive validation” measures as early as 2009 to substitute:which is dedicated to the transformation of the product port- — Bisphenol A (BPA), a chemical compound primarily used in the
folio through the Sustainability Portfolio Management (SPM)
manufacturing of various plastics, used by Sika as an ingrediframework. For more information, please see the “Products andent in the products of the Target Market Flooring. In 2016, BPA
Customers” chapter, “Product Portfolio” section on p.116 of thewas added to the REACH Annex XVII restricted substances list
Sustainability Report 2023.
and has been identified as “substance of very high concern”(SVHC). In 2019, it was proposed for addition to the authoSUSTAINABILITY PORTFOLIO MANAGEMENT (SPM)
rization list by the European Chemical Agency (ECHA). The
The SPM framework defines how Sika structures the innovation
decision of the European Commission to do so is still pendingof products that combine both performance and sustainability
but can come into force with any of the next additions. Frombenefits. The sustainability evaluation is a comprehensive evaluthen on, a three-years transition period until the sunset dateation of the product profile along 12 Sustainability ­Categories,
will apply, and the legal use of BPA will be banned in the EU.
following a 360° perspective. Among key focus areas are Chemi- — Nonylphenol (NP) was substituted as an ingredient incal Hazard and Exposure (Sustainability Category 3), Regulatory­Sikadur®, an adhesive from the Target Market Sealing and
Trends and Forthcoming Regulation (Sustainability Category 4),
Bonding. In 2016, the EU published the Regulation 2016/26
and Health and Safety (Sustainability Category 6) which require
to regulate nonylphenol and its ethoxylates (NPEOs) as a new
Sika to look beyond current regulation and compliance and inentry 46a to REACH Annex XVII. Since January 2017, NPEO has
novate products with improved chemical profiles. A dedicatedfeatured in the authorization list by ECHA. The production andprocedure has been developed for all categories to support SPM
use of nonylphenol ethoxylates has been prohibited in the EU
project teams in undertaking risk assessments in line with thesince March 1, 2023 (sunset date).
requirements of the criteria included within the categories. For
instance:— In the Sustainability Category 3 “Chemical Hazard and ExpoPER- AND POLYFLUOROALKYL
sure”, products are evaluated on human and environmental
SUBSTANCES (PFAS) OR “­ FOREVER
exposures, assessing any potential risks.
— In the Sustainability Category 4 “Regulatory Trends and
CHEMICALS” ­INVESTIGATION
Forthcoming Regulation”, substances used in products are
Sika is not a PFAS producer and the amount of PFAS usedevaluated based on current and upcoming regulations asin product formulations is very small. As a result of anwell as globally relevant conventions (e.g., Montreal Protocol,
evaluation kicked off in 2023, only a few Sika products
Stockholm Convention, Rotterdam Convention, IARC list, Calicontain input materials that fall under this definition,
fornia Prop. 65, REACH Annex XIV and XVII, REACH Candidate
accounting for well below 0.4% of Group sales. Within
List of Substances of Very High Concern).
this project Sika is contacting its suppliers and conducts— In the Sustainability Category 6 “Health and Safety”, products
investigations on how a reduction of these substances
are evaluated on their human toxicity profile, whether they
can be reached in the most efficient way. The main chalreduce exposure to harmful or toxic substances during thelengesare:production process and during application.
— PFAS definition varies across countries/regions.
— Due to legal requirements being in the development
For more information on the SPM Methodology, please see thestage, Sika has to rely on information provided by• Sika Sustainability Portfolio Management Methodology
suppliers since not all information needed is currently­Paper available in the download center of the corporate website.
available on raw materials’ Safety Data Sheets (SDSs).
Similarly as for other sustainability-related topics (e.g.,
REDUCTION PLAN
emissions accounting), suppliers’ knowledge may not
The Sika Substance Risk Management (SSRM) Steering Commitbe equally distributed. Therefore, continuous engagetee continuously reviews the substances of highest concern. As at
ment activities are pivotal to progress.
end 2023, Sika did not generate any revenue with products listed
under the EU Persistent Organic Pollutants (POPs) Regulation.
MBCC’s product portfolio could not be included in the
Moreover, the company has less than 5% 1 global turnover withscopeof the evaluation since the company was officiallysubstances listed in the EU Candidate List of Substances of Veryacquired on May 2, 2023. Evaluation of MBCC’s portfolio
High Concern (SVHC) above 0.1% by weight. Currently, 28 2 subwill continue in 2024.
stances have been identified as Category 1. Some of these areincluded in the list of SVHC. Alternative solutions to C
­ ategory 1
1 Based on 2023 revenues. The assessment does not include the MBCC product portfolio. The latter will be assessed in the coming months.
2 In 2023, Sika changed its banned substance process to the new Sika Substance Risk Management (SSRM) process, leading to a change in assessing and treating
substances with an elevated risk potential based on the GHS classification.

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RESPONSIBLE MARKETING
GRI 3-3

GRI 417-2

GRI 417-3

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

The main goal of the Marketing function at Sika is to support — The Corporate Marketing Services team is responsible forbusiness growth, generate and nurture customer leads, and crecreating the packaging artwork by compiling the information
ate a globally recognized brand. Packaging is essential for suchfrom the Technical, Product Stewardship, and and Productpurposes as it is used to identify Sika products. It enhances theManagement team, Operations, and suppliers. Productappearance of the label for product promotion and provides inforStewardship information is retrieved from the local andmation about the correct and safe use of the product.
global Product Stewards. Product classification and labeling information is determined via the globally deployed SAPCOMMITMENT
Product Compliance System. Corporate Technical & Product
Provide accurate information about all Sika products in compliManagement information is provided directly via the Productance with local laws and regulations and enhance the appearanceManagement team.
of the label for product promotion.
REQUIREMENTS FOR PRODUCT, SERVICE, INFORMATION,GOALS AND TARGETS
AND LABELINGThe marketing and labeling activities at Sika provide Sika cus- Sika complies with all laws and regulations concerning producttomers and stakeholders with compliant, accurate, and valuable and service information and labeling. All entities of the Sika
information regarding classification, labeling, and packaging Group must be compliant with local laws and regulations. No(CLP) rules and the application of its products. Labels should significant violation of regulations concerning this topic wasinclude legal and regulatory requirements, as well as customers’ reported in 2023 1.
requirements, depending on the customer type (either distribution or direct sales).
At Corporate level, the labeling process is divided into a strategical and operational part, respectively managed by the Marketing
RESPONSIBILITIESServices department and the Regulatory & Product ComplianceTo achieve this commitment, four Sika teams are involved at team. The strategical part encompasses the creation of key
Corporate and local levels:
visuals, pictograms/icons, and templates based on packaging/— The Corporate Technical team is responsible for Product Data label type in accordance with Sika Corporate Identity (CI) and
Sheets and product certifications such as Declaration of Per- Corporate Design (CD) guidelines and providing them to theformance or Declaration of Conformity. By fulfilling these ac- Regulatory & Product Compliance team. The operational part
tivities, the technical team complies with regional and local encompasses the creation of the actual packaging/label artworks
product regulations, for example the EU Construction Prod- using templates and elements and – additionally – adding theucts Regulation, EU Marine Equipment Directive, and similar following information:
legislation.
— Product marketing information such as product description,— The local Product Stewardship team is responsible for proviapplication instructions, etc., are provided by the Corporatesion of and compliance with CLP-required hazard symbols,
Product Manager/Engineer.
statements, information, and data for labels and packaging. — Health and safety information such as hazard/precaution
By fulfilling these activities, the Product Stewardship teamphrases, hazard icons etc., are provided by the Global Productcomplies with policies and regulations such as the Globally
Stewardship team.
Harmonized System (GHS) of Classification and Labeling of — Product characteristics and approvals (CE mark, EC1PLUS etc.)
Chemicals, CLP, and REACH.
are provided by the Corporate Technical department & Product— The Product Management team, both Corporate and local, isManager/Engineer.
responsible for defining instructional and descriptive texts — Operational requirements (SAP item numbers, barcodes,(as per Product Data Sheet); main illustration (if applicable)
no-print zones) are provided by the Corporate Master Dataand icons, and country combinations.
department (SAP item numbers, barcodes, etc.) and by the
Packaging & Labeling department (no-print zones etc.).

1 Based on the data collected through the ESG Confirmation.

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123Local entities are involved in the approval workflow describedabove by including at least one employee representing each local
Sika entity in the various steps. These employees must check if
the submitted artwork is compliant with local regulations andlaws. Artworks are only released for use if every single user inthe workflow has given approval.
Each packaging/label artwork is created using the Sika Artwork
Management platform (SAM) by assigning the appropriate workflow and approvers to make sure that each section of the artwork
is checked (if necessary, properly translated) by the stakeholders(if necessary, checked by their local counterparts). Any change
requests are to be reviewed and implemented properly until all
parties have approved the artwork. After that, it is stored andreleased for public use and the corresponding packaging/label
supplier is automatically notified.
This ensures that, on one hand, only artworks that have been
fully vetted and approved are published. On the other hand, that
suppliers are made aware in case new/updated artworks areavailable.
Should there be any change requiring an artwork to be updated(e.g., updated CE marking, health and safety information, etc.),a request is sent to the Regulatory & Product Compliance teamand the process described above is being triggered once again.
REQUIREMENTS REGARDING MARKETING­COMMUNICATIONSSika complies with all laws and regulations concerning marketing communications, including advertising, promotion, andspon­sorship. All entities of the Sika Group must be compliant
with applicable laws and regulations. No significant violation ofregulations concerning marketing communications was reported
in 2023 1.

EMEA MARKETING ACADEMYThe EMEA Marketing Academy has operated since 2020.
It is a valuable internal resource for employees, offering
trainings on various marketing and digital marketing
topics (theory, external trends,tips and tricks, and best
demonstrated practices). The Academy is primarily focused on supporting EMEA countries but is open to all ofSika globally. Since it started in 2020, the Academy has
logged 3,684 individual hours of training with more than
240 participants. In 2023, it focused on the topic of “ethicalmarketing”. Sika aims to transparently communicate, delivering meaningful content and refraining from invasivetactics such as pop-up banners in third party channels.

1 Based on the data collected through the ESG Confirmation.

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CUSTOMER RELATIONSHIP MANAGEMENTGRI 3-3

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Long-lasting success is achieved when an organization attracts
and retains the confidence of customers and society at large.
Understanding the current and future needs of customers allows
Sika to achieve sustainable success over time, and this is why“Customer First” is one of Sika’s five core values.

Local companies were evaluated based on the implementation
status of the minimum set of tools for different activities thecustomer is performing online. Sika’s ambition is to reassess thestatus by end-2025 and have 100% of local subsidiaries operatingin green, i.e., within the expectations.

COMMITMENT
Sika’s commitment to its customers is strongly embedded in thecompany’s values and principles. “Customer First” reflects Sika’s
dedication to maintaining the highest quality standards for its
products and services. All Sika solutions are customer-centric
to ensure the long-lasting success of customers and mutually
beneficial relationships.

In addition, in 2023 Sika implemented a comprehensive dashboard to monitor progress in five dimensions of customer experience; namely how they search for information, how they networkwith Sika, how they learn and develop, how they use services,and how they buy. Via this dashboard the organization can gauge
the effectiveness of the solutions and take measures accordingly. This dashboard has been made available to all General
Managers. As a continuation of this reporting, Sika is automating
the process via the project Customer Centric Analytics, a crossfunctional and cross-geographies project housed under Customer
Centricity, which will allow for more advanced understanding ofcustomer interactions with the organization. The first results will
be harvested in early 2024.

GOALS AND TARGETS
Positive customer relationships and satisfaction are particularly important to Sika, and the company aspires to achieve a
100% customer satisfaction rate.
RESPONSIBILITIES
Local line management is responsible for maintaining customer
relationships and providing customers with products and services
that address their needs. Local line management is also responsible for collecting customer feedback, managing enquiries, andensuring best-in-class customer service.
CUSTOMER EXPERIENCE
Sika has invested significantly in the last two years to enablelocal subsidiaries with a comprehensive set of technologicalsolutions to enhance interactions with customers. These technological solutions aim at providing customers with the ability
to engage with the organization in a meaningful and effortless
fashion, from finding the right content or technical documentation to effectively purchasing products. This portfolio of solutions
encompasses circa 40 digital tools which are optimized from anarchitectural standpoint to leverage information from single
sources of truth and to integrate data in seamless journeys.

Despite its decentralized nature, in 2023 Sika initiated a series ofglobal studies with customers, which aim at improving customer
understanding, hence providing improved experience. One ofthese studies focused on the importance of sustainability in thecustomers’ buying decision. It was performed in six different
representative countries (Unites States, Brazil, France, Sweden,
Italy, and Vietnam) and reached approximately 1,000 customers from different trades. The results are now being processed
to develop a customer-centric approach to support customers
in various challenges regarding sustainability targets. Anotherstudy focused on gauging customers’ experience. It was performed with one pilot country, Spain, and will be rolled out toother geographies within 2024.

In 2023, Sika performed a global assessment to identify:— Where each local subsidiary stands in regard to the portfolio’s
implementation.
— How advanced each local subsidiary is in making proper useof the portfolio to enhance customer experience.

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CUSTOMER FEEDBACK
Sika countries rely on a single platform to collect customer
feedback. This allows the company to create visually engaging,branded, mobile-ready customer surveys and associate the survey responses with data. The platform offers a range of templates for featured surveys, customer success, customer service,employee engagement, marketing feedback, product feedback,and sales feedback. Sika began rolling out the platform in 2022,with the goal to create local and regional dashboards across all
Sika countries to monitor and compare performance, and makesure the corporate team provides support whenever necessary.
As of end of the reporting year, the implementation status in
the regions is the following:— EMEA gained valuable insights on how teams continuously
improve training events, market research, and when customers have made inquiries through the website. There are pilot
countries using the tool to automate surveys to anyone who
has made an enquiry through the website to measure service/response levels.
— Canada collected feedback from 595 customers who scored
Sika services as “excellent”. Implementation of the platformin North American countries is still ongoing and results will
be shared in the next years.
— Latin America has integrated the platform with WhatsApp todeliver NPS results. In 2023, Sika received almost 8,000 customers’ requests with a 90% response rate. Customers scored
Sika services as “excellent”.
— Asia/Pacific has plans to onboard the countries in 2024 fortheir annual customer satisfaction surveys.

CUSTOMER SATISFACTION IN SIKA REGIONS
Thanks to the company’s decentralized business model, Sika’s
local entities are the ones responsible for measuring and monitoring satisfaction rates through surveys, interviews, B2B key
account management, trainings, and workshops, either by relying on their in-house teams or on external research institutes.
As a step towards this goal, in 2023 Sika created a global role
dedicated to customer insights. One of the responsibilities ofthis newly created position is to establish standards on how the
local organization collects, analyzes, and addresses customers’
feedback. This position will also support the interpretation andimplementation of results.

GLOBAL BUSINESS
Sika Global Business applies a pure B2B approach where multiple
roles and functions among the organization actively engage withboth Original Equipment Manufacturer (OEM) and Original Equipment Supplier (OES) customers. All managers ensure projects are
executed according to plan, proposing new products and solutions
based on customer requirements. When necessary, based on customers’ requests, development projects for products are started
and run by the R & D organization. Concurrently, the Technical Service team supports the organization of testing, training, regularmeetings, and workshops at the customer site to demonstrate
how to apply Sika products and solutions. A dedicated Customer
Service team is responsible for customer inquiries in the logistic
and supply chain of projects already in the execution phase andsupporting ongoing business. The team is responsible for several
activities such as coordinating deliveries and managing packaging
and documentation in the customer’s B2B platforms. The goal of
Global Business is not included in the scope since it applies its own this team is to ensure flawless customer relations with targets forcustomer management approach. See information provided below. the quality of the products or services and the stringent timing ofdeliveries. As a supplier, Sika receives monthly performance reports
CUSTOMER SATISFACTION METRICS
from its customers. This allows the company to monitor progress
The Group supports an omnichannel approach for the collection against targets and to measure results. If targets are not met, theof customer feedback and aims to create a consistent experi- responsible team, including assigned customer quality managers,
ence throughout the touchpoints to ensure a high satisfaction develops an action plan for response and improvement. To manrate. Sika countries use a variety of metrics to measure customer age the customer relationship, most customers have a dedicatedsatisfaction, set quantitative targets, and continuously improve Key Account Manager (KAM), who is their designated contact for
performance. For instance:
any inquiry. The KAM often visits customer sites and organizes— Customer loyalty tells how loyal a customer is to the brand meetings at Sika’s premises to nurture an open dialogue, present
and how likely he/she is to promote it. A Net Promoter Score innovative products, and find solutions to customers’ projects.
(NPS) survey commonly measures loyalty with the question“How likely would you be to recommend Sika to a friend or TRAINING FOR CUSTOMERS
colleague from 1 to 10?”Sika is not only selling products, but also integrated solutions,— Customer satisfaction (CSAT) feedback examines how sat- providing training to customers on how to best apply Sika prodisfied customers are with Sika products, services, and other ucts and how to choose the best solution based on their needs.
interactions. Satisfaction is measured with both functional Customer training can be assigned to three main categories: toand emotional metrics, including questions like “How did you transfer generic knowledge; to explain a specific product or its
use...?” and “How did you feel about...?”
application; and to introduce the application of new technical— Direct feedback and customer interviews allow customers developments at congresses. These trainings are usually carried
to share how they felt about their experience throughout out in collaboration with regional and local Sika entities, enabling
the sales process. This feedback is collected through direct, customization based on local markets and customers’ needs.
post-purchase phone, or e-mail surveys, and follow-up with Training can be held at the customer site, within a Sika facility,
prospects who did not close.
or online. In every training, Sika aims to fully engage customers— Customer service or support feedback is like sales feedback, and ensure the collection of valuable feedback. At the end of
but it instead examines a customer’s experience with a ser- each training course, customers are usually asked to answer avice or dedicated support. This type of feedback is collected questionnaire, which exposes their impressions regarding quality
through phone or e-mail surveys after customer support tick- of training content, quality of training tools, and the frequency
ets are raised.
and content of future training.

SIKA SUSTAINABILITY REPORT 2023
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126

PROCUREMENTSUMMARY & HIGHLIGHTSAMBITION

KEY FIGURES

Sika aspires to build relationships with
suppliers to add value in terms of quality,
cost, innovation, and sustainability. The
goal is to reduce risk, establish high sustainability standards and support the
network to improve its ESG performance.

DIRECT MATERIAL EXPENDITURES(IN CHF BN)

APPROACH
Sustainability in procurement and the
supply chain is essential to protect ecosystems, conserve natural resources, andpromote economic viability by adopting
innovative practices. At Sika, procurement
is aligned to the Corporate Strategy. The
company participates in improving thesustainability performance of the supply
chain upstream.

HIGHLIGHTS
Due Diligence Process
In 2023, Sika formalized its Supply Chain
Due Diligence approach en­compassing risk
identification, risk evaluation, and supply
chain development and improvement.
Sika Sustainable Packaging Challenges
In 2023, three Sika Sustainable Packaging
Challenges were successfully carriedout in Latin America, North America, andEurope, all with the common goal ofengaging with packaging suppliers toseek sustainability performance enhancement in Sika’s approach to packaging.

5.2–1.8%

Change vs 2022

SUPPLIERS WHO SIGNED THE ­SCoC 1

55%

TfS ASSESSMENTS

821
+7%

Change vs 2022

AUDITS

255+7%

Change vs 2022

1 55% of the Sika Group’s direct spending was covered by suppliers who signed the revised Sika Supplier Code of Conduct. All information disclosed in this chapter
refers to tier 1 suppliers.

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127

MATERIAL TOPICS
Responsible
Procurement

Human
RightsLabor
Standards

Risk and Crisis
Management

SDGs

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128

RESPONSIBLE PROCUREMENT 1
GRI 3-3

GRI 308-1

GRI 407-1

GRI 408-1

GRI 409-1

GRI 414-1

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Sika’s supplier portfolio is remarkably diverse and varies depend- Sika employs a material risk management approach which is deing on the multiple business segments Sika is active in. Sika scribed in the “Risk Management and TCFD Recommendations”
companies source direct materials, packaging, and trading goods chapter on p.22 of the Annual Report 2023.
both locally and internationally. To complement Sika’s global
supplier network, Sika strives to collaborate with local suppliers COMMITMENT
wherever possible to reduce lead time, risk, and transport, and Procurement enforces Sika’s sustainability strategy and comto increase availability and control quality. Due to Sika’s diverse mitment in activities upstream of the supply chain. The function
purchasing portfolio, with around 65,000 materials from more ensures the supplier base is compliant with current and upcoming
than 18,000 suppliers, there are no primary brands. In 2023, the supply chain due diligence requirements, and social and environamount of direct material expenditures was CHF 5.2 billion, which mental standards.
corresponded to 46.4% of Group total net sales. Material expenses
decreased as a percentage of net sales by –4.2 ­percentage points. GOAL AND TARGETS
Sika’s values are centered around respecting universal humanand workers’ rights, acting in accordance with fundamental enDIRECT MATERIAL EXPENDITURES
vironmental, health, and safety standards, and investing eﬀorts
in CHF mn% of total net sales
6000
in sustainable development and corporate responsibility. The
60
6,000
entire supplier network is expected to embrace the same set of
50.6%
48.2%
5000
valuesand enforce them in their own supply chain. The same
5,000
46.4% 50
standards and expectations will apply to any acquisitions that
4000
Sika integrates. Sika’s goal is that 100% of all new suppliers must
40
4,000
sign the Sika Supplier Code of Conduct (SCoC).
3000
3,000

30

2,000

20

SIKA GLOBAL PROCUREMENT ORGANIZATION
Sika’s procurement organization is aligned with the business toallow close collaboration with internal and external key stake1000
holders. This translates into a matrix organization with material
10
1,000
categories and geographical responsibilities.
0
2021
2022
2023
— Material category roles: All materials for Sika’s core technologies are structured around material categories. A Global
Sourced raw materials include bulk chemicals and minerals,
Category Manager globally coordinates each material catamong others. Main materials based on quantity from theegory. Depending on the size and complexity of spending in
diﬀerent material categories include grey cement, supplementary
the respective categories, Global Material Group Managers
cementitious materials (SCMs), sand, carbonates, polyols, epoxy
might further manage material groups. Global Category
resins, lignosulphonates, polyvinyl chloride (PVC), and bitumen.
Managers and Material Group Managers will be supported in
the regions by Regional Category Managers to ensure better
In Sika factories, the raw materials are converted into higher
target achievement and coordination.
value goods, usually through mixing, blending, compounding, — Geographic roles: All procurement activities within each reand suitable form-giving. From Sika’s ﬁnished goods warehouses,
gion in Sika are coordinated by a Regional Procurement Head.
products are distributed within the respective country and partly
Regional responsibilities can be delegated to areas which areexported. Sika today collaborates with more than 18,000 direct
coordinated by an Area Procurement Head. Likewise, all counmaterial suppliers, for both local and global sourcing. Sika’s suptry level procurement activities are coordinated by a Country
ply chain includes goods purchased locally and across regions, in
Procurement Head.
alignment with Sika’s global reach and presence.
In addition, Procurement dedicates a category and specialized
roles to supply chain due diligence and decarbonization.

2000

1 All information disclosed in this chapter refers to tier 1 suppliers.

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RESPONSIBLE MATERIAL MANAGEMENT
CONFLICT MINERALS
Purchased raw materials are the Group’s biggest cost factor. Sika is active in 103 countries and collaborates with more than
Approximately two-thirds (in terms of spend) of the materials 18,000 material suppliers. In 2023, Sika carried out a global review
used by Sika in production, such as polyols, epoxy resins, acrylic of various regulations and their corresponding thresholds relating
dispersions, and polycarboxylates, are based on fossil fuels or to due diligence of conflict minerals or metals (tin, tungsten, tantheir derivatives. Consequently, purchase prices vary according to talum, gold). Sika’s Global Procurement department conducted
the supply and demand of each raw material and oil price fluctua- the necessary due diligence assessment to identify whether directtions. To reduce its dependency on crude oil, Sika is continuously materials purchased by the company fall under the applicable
exploring alternative renewable raw materials, such as sugar regulations. Considering the defined rules and thresholds, noderivatives, bioethanol derivatives, and natural oils. Moreover, materials which fall under these requirements were identified.
recycled raw materials are used wherever possible, and production plants implement their own, or externally operated, recycling Sika will continue to monitor its procured materials against theloop systems. Mineral substances, such as calcium carbonate, regulatory thresholds related to conflict minerals and metals on
sand, and cement, make up the remaining raw materials. For a yearly basis at global procurement level. In addition, Sika takes
more information, please see the “Planet” chapter, “Circular responsibility for answering inquiries about the use of materials
Economy” section on p.99 of the Sustainability Report 2023.
and products containing potential conflict minerals.
Sika purchases its base chemicals in accordance with strict quality EXTRACTION OF RAW MATERIALS AND RELATED
requirements from certiﬁed suppliers offering the best value for ­PAYMENTS TO GOVERNMENTS
money. In the case of key raw materials with limited availability For more information, please see the • Report on Payments toor large purchase volumes, Sika mandates at least two suppliers Governments 2023 available on the corporate website.
whenever possible. For unique, highly innovative technologies,
the Group seeks to manufacture raw materials itself, or source SUPPLIER RELATIONSHIP MANAGEMENT
them in close collaborative partnerships with innovative suppliers. Sika’s Supplier Relationship Management (SRM) process embodIn respect to all the materials used, compliance with the relevant ies the end-to-end life cycle of Sika’s vendors. This process, which
statutory registration requirements (e.g., Registration, Evalua- is also highlighted in Sika’s internal Sustainable Procurementtion, Authorization and Restriction of Chemicals [REACH] or Toxic Guidelines and Policies, enables Sika to manage its suppliers in
Substances Control Act [TSCA]) is monitored and ensured by a a transparent and collaborative way. ESG criteria play an integral
network of global and local Sika specialists, as well as external role throughout Sika’s SRM approach.
consultants. For more information, please see the “Products andCustomers” chapter, “Product Safety, Quality, and Reliability” sec- SUPPLY CHAIN DUE DILIGENCE
tion on p.119 of the Sustainability Report 2023.
Sika expects that the highest ethical standards will be appliedby its suppliers. As of 2023, in line with the OECD guidelines 1,
Sika’s procurement specialists and technical experts collaborate the company has been further establishing its Supply Chain Dueclosely with suppliers’ technical units to fully understand the Diligence and Risk Management Approach, integrating it in its
raw material ﬂows, and continually optimize costs, quality, avail- Supplier Relationship Management (SRM) Process. The Supply
ability, and sustainability.
Chain Due Diligence and Risk Management Approach is made offive steps: pre-evaluation and ESG risk assessment, qualification,
MATERIAL RISK MANAGEMENT
evaluation, development, and termination where necessary.
All purchased materials are evaluated through Sika’s Material
Risk Management Process to ensure uninterrupted material 1. PRE-EVALUATION AND ESG RISK ASSESSMENT
availability. Based on the ﬁndings, Sika can identify potential As of 2023, Sika started to pre-evaluate and select suppliers
risks and determine relevant measures, such as maintaining according to a defined set of environmental and social criteria.
safety stocks, and/or securing long-term supply contracts. The Procurement is responsible for performing a comprehensive risk
company uses this risk management process stringently to en- analysis of all prospective and existing suppliers, based on country
sure any potential impact on the organization and its custom- and industry-related ESG risks. To perform this pre-­evaluation,ers is mitigated. Local procurement is responsible for ensuring the company uses the EcoVadis IQ tool. Depending on identitheir respective materials are rated, evaluated, and mitigated fied risks and thresholds, specific suppliers will additionally bewhen considered high risk. The results of Sika’s risk management asked to complete a Sika Supplier Self-Assessment evaluating aprocess are often supplemented by an evaluation of a suppliers’ supplier’s management and reporting system, ESG criteria, and
ESG standards and internal processes, in line with Sika’s Supplier quality assurance of the materials provided.
Relationship Management (SRM) process.

1•

OECD Due Diligence Guidance for Responsible Business Conduct

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ECOVADIS IQ
EcoVadis IQ is a platform to comprehensively evaluate
Sika’s tier 1 supplier base for potential ethical, social,and environmental risks. The development of the tool
started in February 2023 and is being rolled out globally.
It supports the identification and assessment of ESG
risks at supplier level while providing transparency also
on country and industry-related risks. The tool builds ona vast array of information sources and metrics to provide
a holistic view of sustainability context at specific supplier level, the so-called Supplier Risk Profiling. It relies on
global human rights indexes and intensity factors related
to issues like child labor, climate, and health and safety.
The underlying methodology of risk mapping is alignedwith EcoVadis ratings criteria, which prominently featurelabor and human rights as a central pillar. This platform
can be instrumental in enhancing Sika’s responsible andsustainable procurement practices while mitigating risks.

2. QUALIFICATION
Following the pre-evaluation, the supplier qualification process
is initiated with all selected business partners. Suppliers need tomeet the minimum requirements designed to ensure compliancewith international human rights and labor standards as well asprescribed quality, environmental, and health and safety criteria.

3. EVALUATION
Embedded in the SRM approach, the supplier evaluation process
helps Sika to obtain ESG-related information improving transparency and risk management at supplier level. Based on such evaluations, Sika can define action plans and engage with supplierson the development of tailored improvement roadmaps. Vendors
identified as potential high risk during pre-evaluation are prioritized and requested to conduct an EcoVadis assessment and/or
audits which are tailored based on the size of the supplier and its
location, under the Together for Sustainability (TfS) framework.
Over 1,000 Sika suppliers have been assessed and/or audited
under the TfS framework. In 2023, 821 TfS supplier assessments 1 with EcoVadis and 255 TfS and Sika supplier audits wereconducted. Through this approach, Sika increases its ability toensure compliance of its suppliers with accepted Corporate Social
Responsibility (CSR) and ESG norms, including fundamental human and labor rights. In 2023, over 650 suppliers of Sika werere-/assessed under the TfS framework. Sika surpassed its selfdefined and TfS-approved annual target of TfS assessments in
2023. For more information on Sika’s risk management approach
to child labor, please see the “People” chapter, “Human Rights”
section on p.62 of the Sustainability Report 2023.
4. DEVELOPMENT
Sika has implemented a remediation and development process
for all vendors that do not meet the company’s expectations
and standards in their respective evaluations. These vendors
are then prioritized for Corrective Action Plan (CAP) and/or reassessment/re-audit. Sika provides learning resources, such as
the TfS Academy, and other internal guidelines to support suppliers during corrective actions. Based on the evaluations Sika
carried out in 2022, a corrective action was initiated in 2023 withthose suppliers where a need was identified. For more information, please see the box “Due diligence case study” on p.132 and“Trainings for Suppliers” on p.133.

The Sika Supplier Code of Conduct is an integral element when
qualifying Sika’s tier 1 suppliers, and sets out the company’s expectations for its supplier network, reflecting the ten principles of
the United Nations Global Compact initiative, the United ­Nations’
Guiding Principles on Business and Human Rights, the International Labor Organization’s Declaration on Fundamental Principles
and Rights at Work, the global chemical industry’s ­Responsible
Care® program, and the Conflict Minerals Regulations. It is the 5. TERMINATION
expectation of Sika that the supplier network embraces the same Violations identified during the due diligence process are escaset of values and commits to Sika’s zero tolerance policy regard- lated to the Head Global Procurement applying a case-by-caseing the respect of basic human rights including child labor, forced approach and, where necessary, suppliers are phased out. In 2023,
labor, modern slavery, and the right to freedom of association no significant or actual risks that led to the phasing out of supand collective bargaining. Sika thereby ensures that suppliers are pliers were identified.
informed of Sika’s ethical, environmental, and social expectations
and guidelines and that they conduct their processes and enforce SUPPLY CHAIN DUE DILIGENCE KEY FIGURES
the same standards and commitments to their respective supply (TIER 1 SUPPLIERS)
chains. As a minimum obligation, Sika requires that all suppliersin numbers
2022
2023
sign and agree to meet the standards set out in the revised Sika
770
821
Supplier Code of Conduct. As of end of 2023, 55% of the Sika Suppliers assessed during the year 1
Group’s direct spending was covered by suppliers who signed the Total suppliers with valid assessment 2
1,019
1,172
revised Sika Supplier Code of Conduct (2022: 33%). The goal isto reach 100% coverage of new suppliers, in the coming years.
1	This indicator refers to both new assessments and re-assessments.
After a successful qualification, suppliers are then onboarded and2	Under the TfS framework EcoVadis assessments have a validity period of three
integrated into Sika’s systems and processes.
years. Therefore, the current indicator shows the sum of the assessments
conducted in the last three years.

1 Can refer to assessments or re-assessments.

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131Following the acquisitions that took place in 2023 and in line with TfS operates along the principle “An assessment or audit for onethe ongoing integration process, Sika will focus on harmoniz- member company is an assessment or audit for all”. The sharing of
ing Supplier Relationship Management processes for concerned supplier evaluations among all members lessens the administrative
entities in 2024.
burden and leverages synergies among the member companies.
This operating model of TfS promotes and provides transparency onsustainability activities and contributions within the supply chain,allowing Sika to initiate and achieve measurable improvements.

DUE DILIGENCE CASE STUDY

In 2023, and in accordance with Sika’s sustainability risk
assessment for suppliers, a Sika procurement team identified a supplier in Pakistan operating within an industry
susceptible to human rights violations. To mitigate andprevent any potential risk of harm to individuals or incompliance with applicable regulations and standards, theresponsible Sika procurement team initiated an engagement with the identified vendor on this specific topic.
The supplier conducted an ESG assessment, and thescorecard revealed key areas of improvement regarding
up-to-standard policies and reporting. During continued
engagement through 2023, all participants in the processagreed on actions and connected timelines to improve
the practice. Sika facilitated awareness training sessions
and conducted constructive meetings to support theirprogress. Furthermore, the supplier was given access totraining materials on human rights, environmental protection, and governance. This initiative-taking approach
will foster a more ethical and environmentally conscious
business environment.

In addition to audits and assessments performed under the TfS
framework, Sika utilizes its own Sika Supplier audit approach.
Trained and experienced auditors incorporate ESG risk-related
topics in their Supplier audit process to ensure transparency onsustainability practice in Sika’s own supply chain. All evaluations
provide the nominated suppliers and TfS with a comprehensivescorecard and/or findings report, and any measures or findings
identified are reviewed via re-assessments or audits during supplier remediation.
For more information on audits and assessments conducted during
the reporting year under the TfS framework, please see the “Supplier Relationship Management” section on p.130 of this chapter.
Sika Procurement has additionally implemented a monthly status
and update report to share how the different TfS projects areprogressing and where Sika stands regarding its targets related toassessments and audits throughout the regions. TfS coordinators
have been set up for all regions, providing useful inputs from local
and regional procurement teams to steer the initiatives internallyand to share best practices.

Sika is a highly active member of the TfS Initiative, participatingin three of the five core Workstreams through 2023:— The WS1 Governance and Partnership focuses eﬀorts on theoverall scope and growth of the TfS initiative, promotes cooperation with other chemical associations and sustainability
organizations, updates the TfS KPIs and governance, and initiates best practice sharing. Sika is chairing WS1.
— The WS3 audits enable member companies and their suppliers to assess, drive, and improve sustainability performance ofchemical supply chains through a shared infrastructure. WS3
ensures that all TfS audits are conducted by approved third party
TfS provides member companies with the framework to conauditors who meet the required standards and evaluate theduct ESG assessments and audits, by partnering with approved­future progress and potential of Supplier Sustainability Audits.
third party providers specialized in evaluating sustainability — The WS5 GHG Emissions allows Sika to work on a solution to
performance. TfS assessments are conducted by its key partner
create a standard for the scope 3 GHG emissions Product ­Carbon
EcoVadis, whose methodology is built on international sustainFootprint calculation in the chemical industry. This will improveability standards, including the Global Reporting Initiative, thetransparency in the industry and enable eﬀective reduction manUnited Nations Global Compact, and the ISO 26000. Their evaluagement. In Q4 2023, TfS launched the TfS White Paper initiaations consider performance across twenty-one indicators in thetive1, which explores challenges and solutions for harmonizing
themes of Environmental, Ethics, Labor & Human Rights, andcarbon accounting methodologies, uncovering complexities andSustainable Procurement.
strategies for a more sustainable chemical industry. This Paper
covers three macro topics fundamental for the chemical industry
TfS audits are on-site ESG evaluations conducted by approved
regarding carbon accounting: biogenic carbon accounting, massand certified third party providers, in which the sustainability
balance as a transition mechanism, and recycled materials andperformance of a supplier is verified against a defined set ofcontent. It is an open-source document and can be downloaded
audit criteria on Management, Environment, Health & Safety,
from the TfS website. Sika is chairing WS5.
Labor & Human Rights, and Governance.
TOGETHER FOR SUSTAINABILITY
Since February 2020, Sika has been an active member of Together
for Sustainability (TfS), a member-driven initiative working todeliver the de facto global standard for environmental, social,and governance performance of the chemical supply chains. The
program is based on the UN Global Compact and Responsible
Care® principles. It is a global organization with regional members’
representation in Asia, North America, and Latin America. As of
December 2023, 50 member companies were part of the initiative.

1•

Scope 3 GHG Emissions Programme – TFS Initiative (tfs-initiative.com)

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SUPPLIER ENGAGEMENT
As part of Sika’s supplier engagement approach, several strategic sustainability meetings were organized with tier 1 suppliersin 2023. Not only were meetings led by the Chief Innovation &Sustainability Officer and Head Global Procurement were conducted, but also some more targeted supplier engagement meetings
were held between Sika’ procurement professionals and suppliersin Region Americas and within specific procurement categories.
The conversations were all focused on climate-related strategies,
carbon footprint impact at raw material level, related reduction
levers, and social aspects. Such meetings not only fostered discussions on reducing emissions effectively, but also highlighted
the importance for Sika to collect supplier-specific data, paving
the way for increased collaborations to introduce sustainable raw
materials and products in line with Sika’s sustainability strategy
and net zero commitment.

Overall, more than 40 of Sika’s current and potential suppliers
have participated in the three challenges conducted in 2023.
Among the submitted proposals, many were related to the introduction of post-consumer recycled content (PCR) to substitutevirgin materials in aluminum/plastic cartridges and pails. Other
recurrent proposals included the introduction of a single material
for paper bags, making them more recyclable, and a shift fromrigid to flexible plastic pails. Updates about the ongoing challenges are regularly shared on Sika’s main social media channels
such as LinkedIn, X, and Facebook.

TRAINING
TRAINING FOR SUPPLIERS
Sika continuously leverages externally provided sustainabilityrelated trainings and webinars for suppliers. More specifically, Sika
relies on the TfS Academy, a tailored learning and development
platform specifically designed to help upskill procurement teams
The focus on supplier-specific data collection is becoming increas- and their suppliers on sustainability-related topics: health andingly crucial to improve data accuracy, consistency, and reliability safety, environment, sustainable procurement, labor and humanat raw material level. Collecting supplier specific data will help to rights, management, and governance. The TfS Academy was
focus on raw material replacement with lower carbon-intensive launched in March 2022 and counts more than 340 courses ofsolutions. With this information, CO2 reduction at supplier level fered in ten different languages. By identifying the key concerns
will be quantified and tracked in a transparent way. Supplier and ﬁndings per region and/or supplier groups and streamlining
engagement, training, and development will help in increasing exercises and improvement guidance, Sika ensures that it prothe share of supplier-specific data. To optimize and automatize vides its supplier network with the necessary support to reachthe collection of Product Carbon Footprint (PCF), Sika plans to the required expectations through the Academy. In 2023, during
use the SiGreen platform, a TfS PCF sharing solution, developed supplier engagement meetings, Sika took the opportunity to
by Siemens. Sika is currently taking part in the pilot phase that concretely show its support for those suppliers with less experistarted in 2023 and the platform is expected to go live in 2024.
ence on sustainability-related topics, by sharing with them the
TfS Product Carbon Footprint (PCF) Guidelines and by giving them
Another noteworthy supplier engagement activity is the Sika access to the TfS Academy.
Sustainable Packaging Challenge. This initiative was launchedin 2022, in Latin America, with the goal of engaging with current TRAINING FOR EMPLOYEES
and potential Sika suppliers to seek innovative sustainability Sustainability-related trainings and best environmental andperformance enhancement in its approach to packaging. This social practices are included in every area and regional procuresuccessful initiative was then repeated in 2023 in North America, ment meeting, to increase awareness on the topic and ensure it
Latin America, and Europe. The format of the challenge is as becomes a priority for everyone, in line with Sika’s sustainability
follows: after an initial round of suppliers being invited, those strategy and net zero commitment. Overall, five area meetings
who show interest in participating are requested to submit their and three regional meetings took place in 2023, for a total ofsustainable packaging proposal(s) within about two months. around 150 procurement people involved. The topic of sustainThereafter, each proposal is evaluated by a Sika committee, com- able procurement was also a focus in the last Sika Sustainability
posed of Sika’s key departments (sustainability, procurement, Academy, held in October 2023, and attended by about 25 Sika
R & D, operations, marketing, and communication). The top five employees from distinct functions and more than fourteen
finalists are selected to participate in a Sustainable Packaging different countries. In addition, in 2023, Sika conducted theChallenge Live Exhibition, and the winning proposal receives the “Supplier auditor training program”, a yearly initiative for procuresupport it needs to facilitate the integration of a new and sus- ment, technical, and quality experts attended by roughly 100 Sika
tainable packaging solution into Sika’s product portfolio.
employees.
The 2023 challenges received great interest from both Sika’s suppliers and the employees involved, contributing to the overall
success of this project, which is planned to be conducted regularly within the various Sika regions.

SIKA SUSTAINABILITY REPORT 2023
Procurement

133

DIGITALIZATION
AND IT ­L ANDSCAPE
SUMMARY & HIGHLIGHTSAMBITION

KEY FIGURES

Sika aims to tap into new digital businessareas aligned with its successful Growth
Strategy. The company focuses on including
its people, customers, and business partners in the digital transformation process,while at the same time managing risks.

INVESTMENTS IN RATIONALIZATION,EFFICIENCY IMPROVEMENTS,
AND DIGITALIZATION (IN CHF MN)APPROACH
The company’s digitalization vision is
structured around four main pillars
which are put into practice via five digitalbuilding blocks.

HIGHLIGHTS
MBCC Group IT Integration
The combined IT teams have been working
closely together to develop an integration
masterplan supporting synergy generation.
Focus has also been on laying a foundation
for all employees to be connected andfacilitate collaboration.

63.5+2.3%

Change vs 2022

NUMBER OF DATA BREACHESREPORTED TO THE AUTHORITIES

0–/+0.0

Change vs 2022

Cybersecurity Strategy Assessment
To evaluate the effectiveness of cyber­security controls and drive improvement
initiatives, a full Cybersecurity Strategy
assessment was completed, including arevision of the security technology stack.

SIKA SUSTAINABILITY REPORT 2023
Digitalization and IT landscape134

MATERIAL TOPICS
Digitalization

IT Landscape

Risk and Crisis
Management

SDGs

SIKA SUSTAINABILITY REPORT 2023
Digitalization and IT landscape135

DIGITALIZATION AND IT LANDSCAPE
GRI 3-3

GRI 418-1

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

Digitalization has implications for everybody – private individuals — Operational Efficiency to increase transparency and to realize
as well as companies. The rise in digital networking is not only
efficient and effective business processes using data andleading to exponential growth in communication possibilities,
innovative technology. Examples include: Internet of Things
but it also has a deep-rooted impact on market dynamics and(IoT) embedded in production, warehouse, and logistic prosocial structures. Companies are confronted with the challenge
cesses to drive transparency for smart decisions in planningof tapping into new digital business areas alongside their tradiand execution; shop floor automation with integration intional market approaches, including their employees, customers,
the Enterprise Resource Planning (ERP) using Artificial Inteland business partners in the transformation process. Thanks toligence (AI) technology to optimize our recipes; and verticalSika’s determination to become a digital leader in its markets,
integration of information.
the company succeeded in integrating these opportunities in — New Business Models and Innovation leverages new busiits growth trajectory and has benefited from the surge in deness opportunities with technology and collaboration withmand in e-commerce and the new opportunities created by theinnovative start-ups. Examples include integration into theintroduction of analytical capabilities. In 2023, Sika invested
BIM (Building Information Modeling) ecosystem; new ways
CHF 63.5 million (2022: CHF 62 million) in rationalization, effiof building with concrete like 3D concrete printing or robot
ciency improvements, and digitalization.
applied “Mesh” technology; smart IoT connected membranes
and building structures; digital services provided by Sika Apps
VISION AND STRATEGY
to help our customers increase concrete quality and improve
Sika’s digitalization vision is structured around four main pillars:
resource management; and an inclusive innovation approachrevenue, efficiency, relevance, and acceleration. The first one isleveraging the ideas of all employees called “Scouts”.
about building new revenue streams with digital services and — Effective Knowledge Worker increases employee productivity,
new business models. The second involves using digital technolofacilitating collaboration and knowledge sharing. Examples
gies to drive down costs and increase efficiency in processes andinclude cultural and organizational readiness to foster digiproductivity in manufacturing and the supply chain. The third
talization and innovation, access to company information foris about the positioning as a relevant participant in the digital
all employees from everywhere at any time, digital learning,world, facilitating doing business with Sika for customers andtranslation automation, and effective approval and collaboragrowing by transferring offline strength to digital. The latter letion workflows supported by apps.
verages digital tools to drive growth, adoption, and collaboration — IT Excellence drives the provisioning of an effective IT archiacross Sika’s decentralized organization. These pillars are put
tecture that is based on standardized modern core IT platinto practice via five digital building blocks:
forms (e.g., SAP S/4, Salesforce or O365) and supports a strict— Customer Centricity offers a full set of digital capabilities withsingle source of truth approach for data. These core platforms
the goal of increasing Sika’s knowledge about customer needs
are connected via powerful integration layers to agile apps,
and providing access to the services of Sika via the preferredcloud, IoT, mobile, social media, and big data. With strong
channel of choice, be it physical or digital. ­Examples include
capabilities in cybersecurity, the corporate IT team safeguards
customer portals such as exchange platforms for services andthe integrity of the IT landscape and protects Sika data frominformation; digital sales channels like Sika eShop, Electronic
being compromised.
Data Interchange (EDI), or web-integrated “Buy now buttons”
for placing orders 24/7; customer-specific apps; customer
training platforms to support safe application of products;
and customer analytics supported by AI technology.

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GOVERNANCE
SIKA’S DIGITAL TEAMSThe Sika Global Digital Board was established in 2020 in response The four digital teams “Customer Centricity”, “Operational Excelto the increasing relevance of topics like digitalization and cyber- lence”, “Effective Knowledge Worker”, and “IT Excellence” support
security. These social and economic development trends create the Sika Digital Board to define digital strategies, execute digitalrisks as well as business opportunities that allow Sika to actively projects, and help to increase the digital maturity of all Sika comshape the process of change, diversify, and improve customers’ panies. New Business Models and Innovation is a result of theengagement channels. The Board is composed of the CEO, CFO, different Target Markets using the company’s digital capabilities
Regional Manager EMEA, Regional Manager Americas, Head to develop digital products and services. Another source of digital
Construction, Chief Innovation & Sustainability Officer, and the innovation is Sika’s innovation concept named “Scout” that alHead IT Sika Group.
lows participation of all Sika employees in innovation challenges.
The Board is mandated to transfer Sika’s strength from analog
to digital, enabling each digital team to progress in a productive
and cohesive way. It oversees the alignment between Sika’s Corporate Strategy and projects related to the five digital building
blocks described above. It is also responsible for approving digiSIKA GLOBAL DIGITAL BOARD
CEO, CFO, Regional Manager EMEA,
Regional Manager Americas, Head Construction,
Chief Innovation & Sustainability Officer,
Head IT Sika GroupCUSTOMER
CENTRICITYOPERATIONAL
EXCELLENCENEW BUSINESSMODELS & INNOVATIONEFFECTIVEKNOWLEDGE WORKER
IT
EXCELLENCEDIGITAL TEAM “CUSTOMER CENTRICITY”
Customer Centricity is a crucial piece of Sika’s digitalization efforts, as it pays directly into its “Customer First” value. The
company’s aim is to translate its “Customer First” approachalso via digital technologies by offering consistent and relevant
experience to its customers. To achieve this goal, Sika takes acustomer-centric approach and sets up its initiatives according
to customer intents rather than technologies. One example is“Learn and Develop”. Understanding that customers want seamless learning and development opportunities via digital channels,
Sika provides these opportunities in different platforms suchas “Knowledge Articles” on the website, customer webinars on
various relevant topics, or the “Sika Knowledge Center”, an online
portal where customers can visit courses and earn certificates.
All digital solutions provided by Sika are optimized technologically,
meaning they are integrated with the larger platforms, or single
sources of truth, such as the company’s Customer RelationshipManagement (CRM) and Enterprise Resource Planning (ERP).
This same logic is applied throughout Sika’s customer centricity
digital program. The company’s current marketing technology
stack encompasses approximately 50 global satellite platforms,
which are organized around customers’ intent and technological function. This is how Sika addresses the needs of its localorganization while leveraging efficiencies from an operational
standpoint. Not all solutions are adopted by all subsidiaries, as
the organization allows for local decision-making on what andwhen to implement a given solution.

tal strategies and Sika’s digital architecture. To facilitate global
digital activities, it can grant funds to projects that demonstratehigh potential for Sika’s digital transformation. It ensures that
digital initiatives adhere to the application and data strategy
defined for effective global implementation. It also nominates The Digital Team Customer Centricity is led by Corporate Constructhe team leads and core members of the global digital teams tion and includes team members from all regions, corporate, andthat drive the activities in the five digital building blocks. In 2023, IT that are engaged in serving Sika’s customers.
the Global Digital Board met three times and discussed the following topics:
In 2023, the focus was on rolling out many of Sika’s established— Digital innovation: e.g., approval of the “Nuage” Sika project customer solutions to additional geographies and on promotthat will reduce data silos in R & D and thus increase efficiency ing several new digital initiatives from pilot to implementationand transparency; Sika AI concept; project Customer Centric phase. One such example is a solution that facilitates the display
Analytics (CCA) to achieve better transparency on the cus- of relevant product data on customers’ websites or e-commerce
tomer journey and support targeted customer services.
platforms, mostly used by distribution customers active in om— Digital housekeeping: e.g., approval to review Sika’s Sales- nichannel. Another example is a further development of Sika’s
force platform architecture and enforce data and process social media management solution, allowing local organizations
standards; approval to implement an Operational Technology to go beyond posting promotional messages and provide timely(OT) security framework.
and precise answers to customers’ requests.
— Digital architecture: e.g., approval of a new digital innovation strategy; the implementation of a Digital Lab; approvalof the frontline worker project enabling provision of a digital
identity to every single employee; the “Mercury” Sika project
to establish a global data management framework.

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DIGITAL TEAM “OPERATIONAL EXCELLENCE”— Artificial Intelligence (AI): Many of the tools and apps that areOperational efficiency is a strategic focal point for Sika as initiacurrently being developed and considered by Sika are based
tives in this area are contributing to profitability. Digitalization
on machine learning or deep learning. R & D activities will relyof processes and data management plays a fundamental role
increasingly on machine learning, where statistical methods
in further developing and optimizing Sika operations. However,are used to accelerate the positive outcome of experimentainitiatives driving operational efficiency are implemented in varition. Sika started to explore use cases for this technology inous areas within the company with the aim to reduce operating
operations.
expenses, e.g., in production, logistics, procurement, R & D, HR, — Training: The topics of digitalization and operational efficiency
finance, sales, and marketing. With the acquisition of MBCC, thehad dedicated sessions in 2023 Operations Academy. The
company has enlarged the organization and related operations.
Global Operations Technology team is also working closely
To generate synergies, an integration masterplan has been detogether with the Learning and Development group as well as
veloped, which also entails a comprehensive IT and ERP strategy.
the “Efficient Knowledge Worker” digital team to further deSika aims to integrate the acquired business onto its solid core
sign programs to enhance the skills and capabilities towards
platform in an accelerated manner. This will substantiate thethe future use of digital tools and processes. On a regional andfoundation of the company’s Digital Strategy 2028.
country level, the organization includes operational efficiency
as content in training and development programs.
The digital team “Operational Excellence” is led by a representative of Sika’s Global Operations team (GOPS) and includes team “NEW BUSINESS MODELS AND INNOVATION”
members from all regions, corporate and IT that are engaged Sika leverages digital technology to optimize and enhance proin operation and supply chain. It closely collaborates with the cesses related to the use of its products and solutions and their
newly established Global Process Owner that is responsible- life cycle. One example of optimization is the range of calculafor designing, simplifying, harmonizing, and protecting Sika’s tion software made available to customers. These tools allow
end-to-end business processes based on a best demonstrated for more speed in the selection of Sika products, avoiding waste
practice template. It also engages with Sika’s regional process or shortage of material during a given application. One example
teams who coordinate the implementation of digital solutions of enhancement is the range of monitoring tools, which allow
across business functions.
customers to identify structures’ need of repair. These tools allow customers to better manage the life cycle of a project andAlongside digitalization, automation has also provided a powerful optimize processes during application.
boost. Sika’s operating systems are increasingly interconnectedto the company’s IT landscape through interfaces between SAP/ The range of digital solutions developed by Sika covers the entire
ERP and Manufacturing Execution Systems (MES) or Warehouse value chain of concrete production, from raw materials analysis
Management Systems (WMS). This makes it possible to design, to concrete mixing, and in transit quality control. Sika’s Sand App,monitor, and manage real processes via digital twins in the digital for example, is a highly innovative digital solution for fast sandworld. Sika has implemented several initiatives in different areas analysis. In 2023, the rollout of this tool continued, with a focus
to promote efficiency in its operations:on Europe. In the USA, Sika further developed its cooperation— Smart logistics and warehousing: Sika is currently investing in with CiDRA Concrete Systems Inc., a company specializing in Ina fully automated new warehouse and distribution center in ternet of Things (IoT) based digital systems to monitor concrete
Ohio, USA, which is currently under construction. The opening properties during transport. Sika and CiDRA already oﬀer thisis foreseen for the end of the first quarter of 2024. In this service to customers in the USA and Canada, and plan to expand
pilot project, Sika will use autonomous forklifts which will into other markets. High-precision on-board systems measure
be interconnected to the extended warehouse management the quality of the concrete during its transport from the batchsystem (EWMS) as part of the Enterprise Resource Planning ing plants to the job sites. Customers beneﬁt from this oﬀer
(ERP) system SAP. This will allow the project to become a through a data subscription service, enabling concrete producbest-­demonstrated practice with an automated put-away ers to access real-time concrete quality data such as workability
and picking strategy and autonomous material transporta- and air content through a cloud-based data portal for every truck
tion. In addition, Sika has successfully completed a pilot for operating in their ﬂeet.
the introduction of a Transportation Management System(TMS) to achieve transparency in managing freight cost in a Digitalization is also revolutionizing the construction and manumore accurate and automated way. TMS will also allow Sika facturing sectors through 3D printing, concrete pouring without
to optimize freight planning, driving efficiencies and reducing formwork (MESH), digital planning, and support tools that inthe carbon footprint by transport route optimization. Sika is crease accuracy and save time. Sika is the only company able toplanning to enhance and rollout the platform in the course supply all the technologies required for industrial 3D concreteof 2024.
printing from one source. The range of solutions includes mortars,— Manufacturing technologies: With the focus on providing a admixtures, and the printing system together with the software.
safe and ergonomic work environment, the company continu- Sika has teamed up with several partners to commercialize 3D
ously invests in solutions to automate manual processes and concrete printing technology in the construction industry and toautomation projects. Besides the safety and ergonomic en- capture its vast potential. Sika’s solution combines sustainability
hancements, we gradually improve the efficiency in material with operational efficiency and productivity improvements. Softflow and associated processes.
ware developed by Sika focuses on modeling complex 3D printed

SIKA SUSTAINABILITY REPORT 2023
Digitalization and IT landscape138elements. Advanced Sika 3D printing technologies allow the realization of new building concepts and more complex shapes whileachieving perfect printing quality with minimum material.

Reaching out to all employees with targeted digital information
is a challenge since not every employee has access to a personal
computer. In 2023, Sika executed the Plant Worker Project withthe goal to create a digital Sika identity for all plant workers. For
Another strategic topic is the modular approach to construction, more information on this project, please see the “People” chapter,
which increases the degree of automation and efficiency in the “Human Capital Development” section on p.72 of the Sustainrealization of construction projects, while simplifying compliance ability Report 2023.
with rigorous safety standards. With its products, systems, andsolutions, Sika can accelerate technological change on construc- DIGITAL TEAM “IT EXCELLENCE”
tion sites.
Sika’s IT architecture is tuned to support digital transformation.
Based on core applications that are standardized and implementIn roofing solutions, Sika offers an efficient system for leak ed globally, such as SAP (ERP), Salesforce (CRM), Successfactors
monitoring and detection. In digital construction, a range of (HR platform), or Microsoft O365, Sika generates vast amounts of
exciting challenges across economic, environmental, technical, process data every single day. These data are exposed via powerand architectural ﬁelds are evolving. In 2023, Sika established ful integration platforms to our consuming applications such asa strategic partnership with Duramon, a Swiss start-up com- Websites, eShops, Customer Portals, or web applications. The
pany engaging in sensors for monitoring corrosion in concrete protection of this architecture and our data is tasked to Sika’s
structures. As a prototype Sika also aggregated the data from Cybersecurity Team and to Data Governance.
sensors and applications in Concrete, Roofing, and Engineered
Refurbishment into a digital-twin platform allowing for visual- Sika Group IT Management team (GIM) is led by the Head IT
ized monitoring in a single portal.
Sika Group and includes the functional service line managers for
IT Infrastructure, SAP, IT Applications, IT Services, and CyberSika covers all activities required for the complete digitalization security, as well as the regional IT Managers. This team definesof the construction industry, including design, processes and the IT Strategy of the Sika Group, approves new applications andoperations, additive materials, and connected devices. Digitali- their implementation, and is responsible for life cycle managezation supports not only efficiency and growth, but also Sika’s ment and operation of the IT landscape.
sustainability agenda.
In 2023, the following initiatives were implemented:
To identify digital opportunities, the Sika Group also uses the in- — IT landscape modernization: Keeping the IT landscape up to
novation concept “Scout” that allows every employee to actively
date ensures that the business can benefit from the newest
participate in a digital challenge. In addition, Sika participates infunctionalities and high operational availability and security. A
innovation platforms like HackZurich or collaborates with startmajor program is the consolidation of all legacy ERP to Sika’s
ups to get access to outside knowledge. For more informationcore SAP S/4 platform or, for smaller companies, to SAP Busion such initiatives, please see the “Products and Customers”
ness by Design (ByD).
chapter, “Innovation Management” section on p.113 of the Sus- — Acquisition integration: The high pace in acquiring companies
tainability Report 2023.
calls for strong IT integration capabilities and concepts. Highfocus is on the integration of the MBCC companies where
DIGITAL TEAM “EFFECTIVE KNOWLEDGE WORKER”
IT security assessments have been accomplished and theDigital workplace (DWP) transformation is key to simplify prooverall integration plan has been developed together withcesses for Sika’s employees and increase effectiveness. This rethe regional and local stakeholders. Already by end of 2023,
quires employees to be equipped with the right skills and tools
some 20 MBCC companies were integrated into the local Sika
so they can excel in today’s dynamic work environment. With
companies.
digital workplace tools based on the Microsoft platform, Sika — Single source of truth data architecture: Sika has enforced
facilitates collaboration and communication as well as automathe focus on a powerful corporate data architecture and hastion of processes and approval workflows.
launched a project that will provide the needed infrastructure(e.g., Data Lakes) and analytics capabilities (e.g., Analytics
The activities of “Efficient Knowledge Worker” are managed byWorkbench). This will reduce complexity, secure data integrity,
the Digital Workplace (DWP) User Adoption team. It consists ofprovide flexible data journey, and enable strong AI capabilities.
members of the corporate Learning department and corporate
IT managers. To multiply the success of the DWP User Adoption Team, a champions’ network named “Booster Organization”
has been established to support the business with the digitaltransformation on a local level. Boosters are Digital WorkplaceChampions and have the task to strengthen user acceptanceof new or existing IT solutions, such as Microsoft 365, and toincrease the benefits for the company and employees in the digital transformation at Sika. Boosters are early adopters and help
coordinate communication and training on site.

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139

CYBERSECURITY
International corporations are exposed to cyberattacks that
include any type of offensive maneuvers targeting computer
information systems, infrastructures, computer networks, and/or personal computer devices through malicious acts. Sika has
a strong organization in place to monitor, detect, mitigate, andresolve such risks.
GOVERNANCE
Cyber risks are amongst the top risks in Sika’s Enterprise Risk
Management framework. These risks are regularly assessed by
the Board of Directors. The CFO is responsible for risk management in cybersecurity, supported by the Head IT Sika Group. For
more information, please see the “Risk Management and TCFD
Recommendations” chapter on p.22 of the Annual Report 2023.

INCIDENT RESPONSE PROCEDURES
Major incident response activities are addressed by the Sika
Cyber Emergency Board according to procedures and planslaid out in the Cyber Emergency Handbook, which includes theIT contingency planning and incident response procedures. Local
responsibility for severe security incident preparation lies witheach Sika company. Since the IT contingency plan is managed
by local Sika companies, the disaster recovery and cyber emergency response tests are carried out locally and performed atleast once per year. This is also the case for the procedures forthe global C­ yber Emergency Board and cyber emergency response
tests which are carried out locally and performed at least once
per year. This also applies to the procedures of the global Cyber
Emergency Board, where test scenarios are built and run together
with an external partner.

The execution of Sika’s Cybersecurity Strategy is assigned to theSika Cybersecurity Team who is responsible for ensuring that Sika
employs the necessary processes, frameworks, and policies, andthat IT Security aspects are effectively implemented.

EXTERNAL VERIFICATION AND VULNERABILITY A­ NALYSIS
Sika employs specific processes and technologies to identify andmanage IT risks and vulnerabilities at multiple layers. Besides themultilevel simulations of cyberattacks in the form of Red Teaming/Purple Teaming exercises, the company is using advanced
A dedicated and highly professional Security Operations Cen- detection and response capabilities, threat hunting, vulnerability
ter, which is part of the Sika Cybersecurity Team, is in place to and patch management processes, and scanning services for incontinuously monitor and improve Sika’s security posture by ternal Sika IT infrastructure. For the services and infrastructure
detecting, analyzing, and responding to cybersecurity incidents components exposed to the internet, external security ratingworldwide. Sika’s Security Operations Center defends against services are used.
security breaches based on the newest industry relevant threat
intelligence and participates in vulnerability management pro- TRAINING
grams that help reduce cybersecurity risks. Additionally, Sika Sika provides its staff with the appropriate training and reinforcset up an Incident Response retainer contract with an external es its IT organization within the Group accordingly. The measurespartner. The effectiveness of Sika’s cybersecurity framework is to defend against such attacks are continually reviewed with thetested regularly. The Group Management monitors and approves help of external specialists and adapted in line with any new
actions and reports on cybersecurity activities to the Audit Com- situations that may arise. Mandatory for every employee is tomittee. The company has put the following measures in place to successfully pass the e-learning on “IT security for Users”.
reduce cybersecurity risk:— Comprehensive cyber incident management framework andprocesses for effective cyber response and IT Continuity
Planning.
— Constant assessments of cyber maturity.
— Internal cybersecurity skills that are backed up by support
from external specialists.
— Internal IT security audits of local sites across the world according to Sika’s IT Audit framework based on the ISO 27001
standard.
— Regular training of the Sika workforce on developments incyber risks and how to counter these risks.
In 2023, the security awareness of Sika employees was further
strengthened. Regular phishing awareness campaigns and simulated phishing attacks were organized, and key improvements
were made in the relevant metrics. In addition, a full Cybersecurity Strategy assessment and transformation was completed,including a complete revision of the security technology stack.
Such assessments and updates are driven with the “assume
compromise” stance to continuously evaluate the effectivenessof Sika cybersecurity controls and drive various initiatives to improve IT resilience capabilities.

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DATA PROTECTION AND CUSTOMER DATA PRIVACY
While Sika does not want to hinder the flow of information required for the business, it is crucial to protect Sika’s know-how
from improper use. The company is committed to respecting thedata privacy and integrity of all employees, customers, and third
parties. Sika applies all technical and organizational measuresnecessary to guarantee adequate protection and the accuracyof the personal data on file. The Data Protection Policy is closelyaligned with widely accepted international standards and is
adapted to local requirements during compliance implementations of local data protection legislations (e.g., implementation of
the Swiss Federal Act on Data Protection (FADP)). It is reviewed
regularly and updated if necessary to meet business needs,changes in technology, or regulatory requirements. In addition,
the Sika Group is currently implementing a project to classify
and protect its non-structured documents and e-mails to further
protect Sika’s critical and sensitive information.
GOVERNANCE
At Group level, Sika’s data protection organization is run by
the Data Protection Steering Committee, which is responsiblefor defining Privacy Group Strategy & Program (DP Principles),coordinating Corporate Functions on Privacy Risk, managing
Incident Breach cases, coordinating Supervisory Authorities investigations, and monitoring the adequacy of Group technicaland organizational measures (TOMs). A Group Data Protection
Manager (Group DP Manager) who coordinates the implementation of the Group ­Privacy Program supports local DPOs (Data
Protection Officers) and DPCs (Data Protection Champions),
who are locally responsible for the adherence and implementation of the privacy program and compliance. The Group DP
Manager also manages the Privacy Portal, provides guidance,
supports the implementation of new projects and applications,monitors adherence to privacy principles and conducts implementation checks (privacy audits), and collaborates with othercorporate functions – in particular IT, HR, and Marketing – on
privacy mapping and risk. Sika collects, processes, and transfers
personal data only, if necessary, to maintain accurate customer,
supplier, business partner, shareholder, or investor informationand improve relations with these groups; to optimize internal
processes and the delivery of goods and services; to protect thecompany sites and infrastructure (access control, video, andIT surveillance) and for other security reasons; to fulfil contractual or legal obligations, or to make legal claims, in connection
with these groups; and to respond to a court order.

the local authorities and/or the individual(s) (in case of high risks
for the individual). If necessary, the local data protection employee responsible, with the support of the Group DP Manager,
then notifies the authorities and/or individuals a­ ccordingly. The
breach must be documented, and mitigation actions to prevent
similar breaches must be documented and implemented. The
DP Group Manager supervises the implementation and documentation of the mitigation measures. In 2023, 100% of Sika’s
General Managers conﬁrmed – by means of the annual ESG
Conﬁrmation – that there were no data breaches which needed
to be reported to the authorities.
DATA BREACHES
in numbers

Data breaches reported to theautorities

2021

2022

2023

0

0

0

TRAINING
In 2023, Sika provided several trainings throughout the organization on the following topics:— Data Privacy Awareness Training: e-learning for all non-EU andnon-adequate/comparable GDPR countries with or without adedicated data protection regulation.
— General Data Protection Regulation (GDPR) e-learning: mandatory e-learning for all EU employees with an e-mail address,
covering GDPR-specific data protection topics.
— New Swiss Data Protection Law, FADP e-learning: mandatorye-learning for all Swiss employees with an e-mail address,
covering the FADP training requirements.
— Data Protection Essentials Training: additional e-learningavailable in English, which includes the basic data protection
principles and other general data protection information.
— Anti-fraud: Since 2021, all employees must complete the newanti-fraud online training, aiming to raise awareness aboutcyber fraud, primarily among those employees most exposedto cyber risks.

DATA BREACHESIn the event of data breaches, Sika has a process in place whichmust be applied in EU countries and countries that have a dedicated data breach reporting requirement. When a controller,
processor and/or an individual becomes aware of a potential
breach, this needs to be reported immediately to the local dataprotection officer and/or the Group DP Manager. Subsequently,
the affected Sika company(ies) is/are required to collect thenecessary information and an incident response questionnaireneeds to be completed in the Sika OneTrust Privacy Portal. As anext step, the Group DP Manager reviews the available information, which is forwarded to the DP Committee for evaluation. The
DP Committee assesses if the breach requires a notification to

SIKA SUSTAINABILITY REPORT 2023
Digitalization and IT landscape141ECONOMIC PERFORMANCEAND VALUE CREATIONSUMMARY & HIGHLIGHTSAMBITION

KEY FIGURES

A profitable business model securesthe long-term viability of the company
and is an important cornerstone tomaintain global technology leadership.

SALES GROWTH (IN CHF MN)APPROACH
Sika develops innovative solutions
together with its customers along­several strategic pillars, allowing thecompany to create sustainable value
for stakeholders. Sika is committed
to being a socially responsible corporate
fiscal citizen.

HIGHLIGHTS
Economic performance 2023
Sika maintained its profitable growthtrajectory in 2023 even in a challenging
economic environment, generatingrecord sales. In local currencies sales
grew by +14.5%. Material margin
expanded significantly to 53.6%(2022: 49.4%).

11,238.6+7.1%

Change vs 2022

MATERIAL MARGIN

53.6%+4.2%

Change in % points vs 2022

DISTRIBUTION OF VALUE-ADDED(IN CHF MN)

3,557+7.1%

Change vs 2022

TAX RATE

20.5%–1.9% points Change vs 2022

SIKA SUSTAINABILITY REPORT 2023
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142

MATERIAL TOPICS
Economic
Performance

Tax
Approach

Risk and Crisis
Management

SDGs

SIKA SUSTAINABILITY REPORT 2023
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143

ECONOMIC PERFORMANCEGRI 3-3

GRI 201-1

GRI 201-4

POLICIES AND GUIDELINES•

Financial stability and long-term profitability ensure that Sika
remains a reliable and value-adding partner for all its stakeholders now and in the future. Economic performance is an importantfactor to maintain global technology leadership by facilitating
continual investment in R & D, as well as the ability to stay close
to customers and serve all markets. Economic strength allows
Sika to distribute value to various stakeholders. It is also criticalfor developing high-performing products, developing its workforce, providing long-term shareholder returns, and being a good
corporate citizen that gives back to the community.

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

national subsidiaries are consolidated into regions with higherlevel management functions. The regions are EMEA (Europe,
Middle East, and Africa), Americas, Asia/Paciﬁc, and Global
Business. The regional and local management teams bear full
proﬁt and loss responsibility, and – based on the Group strategy – develop regional and country-speciﬁc strategic plans andtargets. From 2024 on, Global Business will be integrated into thegeographical regions and the reporting segments will be EMEA(Europe, Middle East, and Africa), Americas, and Asia/Pacific.

GOVERNANCE
COMMITMENT
Sika evaluates its management approach through a process
Sika committed to deliver on the strategic pillars of its Strat- steered by the BoD. Both the CEO and the CFO report to the BoD
egy 2023 – Market Penetration, Operational Efficiency, Acqui- in writing on the development of business at least once a month.
sitions, Values – and related targets. Starting from 2024, the A monthly management package on financial performance is
new Strategy 2028 is in place, and it is based on four key pillars: shared with Group Management and the BoD to provide an upMarket Penetration, Innovation & Sustainability, Acquisitions, date on the company. In addition, nine Group Management andPeople & Culture. For more information on strategic pillars, twelve BoD meetings took place throughout the year, to review
please see the “Strategic Report”, “Strategy 2028 – Beyond the and discuss all strategic topics (financial performance, investExpected” chapter on p.17 of the Annual Report 2023.
ments, acquisitions, business activities, non-financial performance, etc.). Extraordinary events are reported immediately to
GOALS AND TARGETS
the Board Chair or the Audit Committee, if such events relate
Strategy 2023 was launched in 2019 and was aligned with Sika’s to the latter’s area of responsibility. The Audit Committee isgoal for sustainable and profitable growth. The strategy was or- responsible for reviewing internal and external audits and risk
ganized around six pillars focused on ambitious financial targets management. For more information, please see the Corporate
and on improving the carbon footprint of the company’s opera- Governance report on p.163 of the Annual Report 2023.
tions. Within these six pillars, Sika aimed to grow by 6 –8% in local currencies per year up to 2023 and to achieve an EBIT margin DIRECT ECONOMIC VALUE GENERATED AND
of 15 –18%. The new Strategy 2028 builds on the success of the DISTRIBUTED
previous growth model, setting ambitious financial and nonin CHF mn
2021
2022
2023
financial targets. It envisages leveraging Sika’s leading market
9,252
10,492
11,239position and innovative strength, setting the course towards Revenues
even stronger company performance over the coming years. The Intermediate inputs
5,838
6,806
7,196
annual growth target in local currencies has been lifted to 6–9%
Non-liquidity related expenses
342
365
486
and the profitability target is now an EBITDA margin of 20–23%.
RESPONSIBILITIESOverall responsibility for economic performance at Group level
lies with the Board of Directors (BoD) along with the Group Management. Sika’s international expansion began soon after thefoundation of the company more than 100 years ago. Since then,the company has organized its global activities by country. The

Distribution of value added

3,072

3,321

3,557

Employees wages and benefits

1,637

1,711

2,007

Payments to governments

331

390

328

Payments to lenders andshareholders

410

503

652

Economic value retained

694

717

570

SIKA SUSTAINABILITY REPORT 2023
Economic performance and value creation

144

Sika creates sustainable value for its customers, the supply chain,and many other stakeholders. The company generates substantial value for governments (through taxes), employees (throughcompensation and benefits), shareholders (through dividends),
suppliers and service providers (through raw material and service
prices), and society (through taxes and local community projects). Part of the value generated is retained in the company fordeveloping new technologies, acquisitions, capital investments,
and to remain independent from capital market fluctuations. For
more information, please see the “Strategic Report”, “Businessenvironment” chapter on p.12 of the Annual Report 2023, and the“Financial Report”, “Consolidated Financial Statements” chapter
on p.200 of the Annual Report 2023.
FINANCIAL RESOURCES
Sika’s high cash generation results in a solid balance sheet.
The strong deleveraging profile supports a strong credit rating,which in turn gives Sika good access to the capital markets. Reliable cash generation enables consistent investments in future
growth. For example, in R & D, expansion of the geographicalproduction footprint to fully capture market potential, bolt-on
acquisitions, or training and development of employees. In addition to financing its growth and operations with cash, Sika usesbank loans and bonds. When issuing bonds, Sika makes sureto keep a well-­balanced and conservative maturity profile. To
finance the MBCC acquisition, Sika successfully placed various
bonds in the Swiss and Euro market. The trust of capital markets in Sika’s sustainable growth was demonstrated through thestrong demand for such bond placements. For more information, please see the “Strategic Report”, “Business environment”
chapter on p.12 of the Annual Report 2023, and the “Financial
Report”, “­Consolidated F­ inancial Statements” chapter on p.200of the ­Annual Report 2023.
FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENT
In 2023, Sika received CHF 0.8 million (previous year: CHF 1.5 million)in government subsidies for employment relationships. The company also received CHF 5.5 million in government support (previous year: CHF 6.6 million) through specific grants. Please see
Note 4 and Note 5 in the “Notes to the Consolidated Financial
Statements” on p.205 of the Annual Report 2023.

SIKA SUSTAINABILITY REPORT 2023
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145

TAX APPROACH
GRI 3-3

GRI 207-1

GRI 207-3

GRI 207-4

GRI 207-2

POLICIES AND GUIDELINES•

For more information, please visit
the ­corporate webpage ESG Policies
and Guidelines

TAX VALUES
ing and control systems are in place to collect information on
Through its tax principles, internal policies, and actions, Sika is significant tax risks relating to compliance, financial reporting
committed to being a socially responsible corporate fiscal citizen. and planning, tax audits as well as legislative developments.
Sika pursues a long-term, sustainable Tax Strategy which ensurescompliance with national and international tax laws and regula- INTERACTIONS WITH TAX AUTHORITIES
tions. In the 2023 ESG Confirmation, all GMs confirmed that there Sika promotes open and transparent relationships with tax
were no violations of applicable tax laws in their entities. The ­authorities. When applicable, Sika uses appropriate mechanisms
active management of tax matters ensures that Sika pays a fair to clear the tax impact of major transactions with relevant tax
share of tax in each of the 103 countries where Sika operates.
authorities in advance. Tax audits are conducted in a supportiveand collaborative way and requested information is provided in a
TAX GOVERNANCE
timely manner. On certain occasions, Sika may provide technicalSika’s tax approach is in line with the Organisation for Economic input to the relevant authorities with respect to proposed tax
Co-operation and Development (OECD)/G20 guidelines. By fol- legislations, using the appropriate channels, to constructively
lowing a business-oriented approach based on functions, as sets, improve the competitiveness of a tax system.
and operating risks when determining processes and transactions,Sika has a market-based outcome. The company is committed to TAX RATE
paying its fair amount of taxes in each jurisdiction where it operin %
2021
2022
2023
ates. The outcome of the business-oriented approach is always
21.5
22.4
20.5
checked for its compliance with all applicable laws. Furthermore, Tax rate
potential impacts on stakeholders and Sika’s reputation are considered. In line with Sika’s corporate values, the objective of Sika’s
Tax Policy is to comply in good faith with the letter and the spirit In 2023, the income tax rate amounted to 20.5%, thereby deof all applicable tax laws and obligations in all countries where creasing compared to the level of the previous year (22.4%). On
the company operates, across all direct and indirect taxes, as a average, Sika’s tax rate is stable, showing the company’s relicompany and employer, as well as with international treaties and ability as a taxpayer.
guidelines. This approach results in an effective Group tax ratethat reflects Sika’s global footprint, the decentralized nature of COUNTRY-BY-COUNTRY REPORTING
the business, and the Group’s successful local operations.
Starting in 2016, Sika was one of the first companies to submit an annual Country-by-Country Report (CbCR) to the Swiss
TAX RISK MANAGEMENT­Federal Tax Administration (SFTA) on a voluntary basis. This
Based on genuine business rationale and with a long-term view OECD/G20 standard includes pertinent information such as profit
of sustainability and predictability, Sika proactively manages the and taxes paid per country where the company is active. In line
tax aspects of its business operations and transactions. Total tax with the OECD’s intention, the SFTA passes this report on tocosts are managed within clear risk parameters in line with the the tax ­authorities in other countries where Sika is subject toSika Group business operations. Sika adheres to “arm’s length taxation. The result of the CbCR demonstrates that Sika is duly
principles” and complies with local laws and regulations for pric- complying with its tax obligations and paying its fair share of tax.
ing intercompany transactions. Sika maintains transfer pricing
documentation in compliance with local legislation.
VIEW AND CONCERNS OF STAKEHOLDERS
Sika is committed to openness and transparency. The • Sika Trust
FULL DISCLOSURE OF TAX RISK AND TAX PLANNING
Line allows for anonymous reporting directly to the attention
Sika does not: engage in aggressive tax planning; use complex of Corporate Compliance. For more information, please see thestructures or offshore havens to minimize its tax liabilities; adopt “People” chapter, “Business Ethics and Integrity” section on p.59
tax schemes based on form without commercial substance; use of the Sustainability Report 2023.
offshore entities that lack business purpose and substance; oruse hybrid instruments and/or entities in structures that result PUBLIC POLICY ADVOCACY ON TAX
in tax avoidance, double deduction, or no taxation. Sika engages For more information, please see the “People” chapter, “Public
external advisors when appropriate to manage tax risks. Report- Policy” section on p.78 of the Sustainability Report 2023.

SIKA SUSTAINABILITY REPORT 2023
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146

METHODOLOGICAL NOTEGRI 2-2

GRI 2-4

SCOPE OF REPORTING
AND CONSOLIDATION— The Sika • UN Global Compact Index shows that Sika adheres to the ten principles of the UN Global Compact in its
business practices, comprising the four areas of human rights,
labor standards, environment, and anti-corruption.
The scope of Sika Sustainability reporting is aligned with the — Sika’s corporate carbon accounting (scope 1, 2, and 3) follows
scope of entities consolidated in the Group financial statements,
the reporting guidelines of the Greenhouse Gas Protocol
as described on p.209 of the Annual Report 2023. If 2023 acquisi(GHGP) Corporate Accounting and Reporting Standard. For
tions are excluded from consolidated 2023 figures, a dedicatedadditional information on the scope 3 assessment, a detailed
mention is available in the relevant section.
methodology paper • Sika Methodology for Scope 3 Emissions Calculation is available in the download center of the
In the year under review, the scope of consolidation of the Suscorporate website.
tainability reporting was expanded to include:— The Sika Sustainability Report 2023 also complies with the rec— The acquired companies MBCC Group and Thiessen Team USA.
ommendations of the Task Force on Climate-related Financial— The newly founded companies Sika (Zhejiang) Novel Material
Disclosures (TCFD), which are described in more detail in the• TCFD report 2023 available in the download center of theCo., Ltd., Jiaxing City (China). and SikaDavco (Liaoning) New
Materials Co., Ltd., Liaoning (China).
­corporate website.
More information on these acquisitions and expansions is available in the “Financial Report” on p.199 of the Annual Report 2023. REPORTING REGULATIONSGenerally, acquired companies’ data are included in the Sustainability reporting from the acquisition date onwards. The list of all CORPORATE SUSTAINABILITY REPORTING DIRECTIVE
consolidated companies is detailed in the “Notes to the Consoli- Sika Group will disclose information and KPIs in accordance withdated Financial Statements” on p.248 of the Annual Report 2023. the Corporate Sustainability Reporting Directive (CSRD) frombusiness year 2025, with first mandatory reporting in 2026. The
More information on the scope of reporting and consolidation company will comply with the European Sustainability Reportingof scope 3 emissions is available in the • Sika Method­ology for Standard (ESRS) developed by the European Financial ReportScope 3 Emissions Calculation available in the download center ing Advisory Group (EFRAG). In 2024, Sika will conduct a doubleof the corporate website.
materiality assessment which is needed to develop a roadmap
to fulfil ESRS requirements.

REPORTING STANDARDSEU TAXONOMY
The EU Taxonomy requirements will affect the Sika Group beThe Sika Sustainability Report 2023 is part of the Sika corpo- cause of the CSRD. Therefore, the company kicked off the “EUrate reporting package. The Sika Group has reported the infor- Taxonomy” project in 2022. Specifically, Sika initiated the eligimation cited in the Sustainability Report 2023 for the period bility analysis of its business activities for two environmental
01.01.2023–31.12.2023 with reference to the GRI Standards 2021. objectives (­climate change mitigation and adaptation). Sika will
In addition, the following documents are available in the down- pursue the exercise to ensure an exhaustive identification of its
load center of the corporate website:
taxonomy-eligible economic activities and consistently report on— The Sika • GRI Content Index reports information on Sika’s related KPIs (Turnover, CapEx, and OpEx) in the following years.
material topics for the period 01.01.2023–31.12.2023 with reference to the GRI Standards 2021.
NON-FINANCIAL DISCLOSURES IN ACCORDANCE— The Sika • SASB Content Index provides an overview of WITH THE TRANSPARENCY REQUIREMENTS OF
Sika’s reporting practices in accordance with the Sustainability THE SWISS CODE OF OBLIGATIONS
Accounting Standards Board (SASB) sustainability disclosure The Sika Sustainability Report 2023 includes the company’s distopics and accounting metrics for the Resource Transforma- closures of non-financial matters required by the Swiss Code oftion– Chemical (RT–CH) sector.
Obligations (CO 964).
— The • Sika and the UN SDGs document shows which UN SDGs
and related targets and indicators Sika’s activities directly contributed to during the reporting year.

SIKA SUSTAINABILITY REPORT 2023
Methodological note

147

SWISS CODE OF OBLIGATIONS MAPPING TABLE
Section in the Sustainability
Report (SR) 2023/
Annual Report (AR) 2023

Page number(s) and/or URL(s)and /or other documents

Description of the business model

SR – Sustainability at Sika
AR – Strategic Report

p.42
p.12

Description of the main risks in relation to the non-financial matters

SR – Sustainability at Sika
AR – Strategic Report

p.43
p.22
• S
 ika Materiality Analysis 2022
• T
 CFD Report 2023

ART. 964 A-C TRANSPARENCY ON NON-FINANCIAL MATTERS

Environmental matters
Policies

SR – Planetp.83
SR – Products and Customers p.111• E
 SG Policies and Guidelines

Measures including evaluation of their effectiveness

SR – Planetp.83
SR – Products and Customers p.111

Performance indicators

SR – Planetp.83
SR – Products and Customers p.111

CO2 goals

SR – Planet

p.83
• S
 ika’s Way to Net Zero

Social matters
Policies

SR – People
p.50
SR – Procurementp.127
SR – Products and Customers p.111• E
 SG Policies and Guidelines•S upplier Code of Conduct(SCoC)

Measures including evaluation of their effectiveness

SR – People
p.50
SR – Procurementp.127
SR – Products and Customers p.111

Performance indicators

SR – People
p.50
SR – Procurementp.127
SR – Products and Customers p.111

Employee-related matters
Policies

SR – People

p.50
•
•

C
 ode of Conduct (CoC)E
 SG Policies and Guidelines

Measures including evaluation of their effectiveness

SR – People

p.50

Performance indicators

SR – People

p.50

SR – People

p.62

Human rights matters
PoliciesS upplier Code of Conduct(SCoC)• C ode of Conduct (CoC)• E
 SG Policies and Guidelines•

Measures including evaluation of their effectiveness

SR – People

p.62

Performance indicators

SR – People

p.62

SIKA SUSTAINABILITY REPORT 2023
Methodological note

148

SWISS CODE OF OBLIGATIONS MAPPING TABLE
Section in the Sustainability
Report (SR) 2023/
Annual Report (AR) 2023

Page number(s) and/or URL(s)and /or other documents

SR – People

p.59

Anti-corruption
PoliciesS upplier Code of Conduct(SCoC)• C ode of Conduct (CoC)• E
 SG Policies and Guidelines•

Measures including evaluation of their effectiveness

SR – People

p.59

Performance indicators

SR – People

p.59

ART. 964 D-I – TRANSPARENCY IN RAW MATERIAL COMPANIES
Report on payments to government bodies for companies active in theextraction of raw materials•R eport on Payments toGovernments 2023

ART. 964 J-L – DUE DILIGENCE AND TRANSPARENCY IN RELATIONTO MINERALS AND METALS FROM CONFLICT-AFFECTED AREAS
AND CHILD LABOR
Conflict minerals

SR – Procurement

p.130

Child labor

SR – People

p.62

DATA COLLECTION AND REPORTING
METHODOLOGIES
Sustainability Performance Indicators disclosed in the Sika Susindicators with a defined baseline for strategic performancetainability Report 2023 are based on the following:
monitoring ( •  ­Table 22: Environmental Performance 2023
— Social, Environmental, and Health and Safety (EHS) data arein the “Key Performance Indicators” section of the “Planet”
collected through the Sika corporate reporting and BI syschap­ter on p.106). The new strategic targets for 2023–2028
tem. Environmental indicators are reported at site level on aare defined with 2023 as a baseline. For more information onquarterly basis. Health and Safety indicators are reported at
Sika’s ESG data governance including rebaselining, please seesite level on a monthly basis. Training hours are reported atthe “Methodological Note” chapter on p.147 of the Sustaincompany level on a quarterly basis.
ability Report 2023.
— Community Engagement indicators are reported quarterly at — Water indicators for 2021 and 2022 disclosed in the “Water
company level.
Management” and “Key Performance Indicators” sections of— The ESG Confirmation does not cover MBCC legal entities forthe “Planet” chapter have been restated due to a stricter ap2023 as the acquisition was closed during the fiscal year.
plication of internal reporting rules for groundwater volumes— Since 2022, Sika has added granularity to the reporting ofwithdrawn used for cooling processes in one factory.
headcount-related indicators. The breakdown of employees — Many of the strategic KPIs disclosed in the “Planet” chapter
per age, contract, and employment type is now available
are measured by using tons sold as a denominator. Tons soldper gender. 2019, 2020, and 2021 have not been restatedinclude all Sika manufactured and third party traded products.
accordingly.
The development of the third party traded tons sold in the— Since 2023, Sika has added granularity to the reporting of repast four years has been stable and therefore does not impact
cruitment and turnover-related indicators. The breakdown of
the overall performance.
hirings and departures is now available per age category. 2019, — Sika’s corporate carbon accounting (scope 1, 2, and 3) follows
2020, 2021, and 2022 have not been restated accordingly.
the reporting guidelines of the GHGP Corporate Accounting— Acquisitions and scope changes that occurred in 2021 andand Reporting Standard. According to the same guidelines,
2022 did not lead to a restatement of the environmental
CO2 equivalent (CO2eq) is defined as the universal unit ofindicators disclosed in the “Planet” chapter. Likewise, acquimeasurement to indicate the global warming potential (GWP)
sitions that occurred in 2023 did not lead to a restatementof each of the six greenhouse gases, expressed in terms ofof 2021 and 2022 environmental indicators disclosed in the
the GWP of one unit of carbon dioxide. It is used to evaluate“Planet” chapter except when stated specifically. However, in
releasing (or avoiding releasing) different greenhouse gases
accordance with Sika’s new ESG data governance framework,
against a common basis.
they have been included for the full 2023 reporting year for

SIKA SUSTAINABILITY REPORT 2023
Methodological note

149

OVERVIEW OF EMISSION FACTORS DOCUMENTATION PER SCOPE
Scope 1 GHG emissions – D­ irect energy

Defra/BEIS 2022

Scope 1 GHG emissions – F­ ugitive emissions

Defra/BEIS 2022

Scope 2 GHG emissions – Electricity – Market-based— AIB 2021 European Residual mixes(residual emission factors for European locations)— 2022 Green-e residual mix emissions rates(residual emission factors for US locations)— IEA emission factors 2022 for all other locations

Scope 2 GHG emissions – Electricity – Location-based— US EPA eGrid 2021 Emission Rates— IEA emission factors 2022 for all other locations

Scope 2 GHG emissions – D­ istrict heating

Defra/BEIS 2022

Scope 3 GHG emissions•

Biogenic CO2 emissions – Scope 1

Defra/BEIS 2023

Biogenic uptake – Scope 3 cat. 1

Sphera CUP 2023.2

Biogenic CO2 emissions – Scope 3 cat. 12

Based on the carbon content methodology

Air emissions— UK National Atmospheric Emissions Inventory (NAEI)— Swedish Environmental Protection Agency (EPA)— In 2022, Sika added granularity to the reporting of vehicle
fuel. The reporting is now split per type of fuel (diesel, gasoline, biodiesel, ethanol, LPG, and natural gas) with a different
emission factor applied to each category. Scope 1 emissions
from 2019, 2020, and 2021 have not been restated accordingly.
— In 2022, fugitive emissions related to refrigerant gases wereadded to the scope 1 inventory as per the Greenhouse Gas
Protocol. These emissions are calculated based on Defra/BEIS
2021 emission factors. Scope 1 emissions from 2019, 2020, and2021 have not been restated accordingly since fugitive emissions represent 0.5% of Sika’s scope 1 and 2 emissions for 2022.
— In 2022, district heating was added to the company scope 2 inventory as per the Greenhouse Gas Protocol. These emissions
are calculated based on Defra/BEIS 2021 emission factors.
Indirect energy consumption and related scope 2 emissions
from 2019, 2020, and 2021 have not been restated accordingly
since district heating represents 0.2% of Sika’s scope 1 and 2
emissions for 2022.
— Since 2022, scope 1 and 2 emissions related to Sika Corporate
Services companies in Switzerland have been reported separately. 2019, 2020, and 2021 have not been restated accordingly.
— In 2022, rainwater was added to the reporting of water withdrawal per type of source. Water withdrawal data from 2019,2020, and 2021 have not been restated accordingly.
— Up to 2021, wastewater disposed separately due to local regulations could be reported under waste and excluded from water
discharge. From 2022 onwards, the reporting methodology ofwater discharge has been adjusted. A new account “Water sent
off-site for treatment” was created to capture the total volume
of wastewater under water discharge, leading to a shift fromwaste to water discharge. The indicator “Water to ground” hasalso been added. Waste and water data from 2019, 2020, and2021 have not been restated accordingly to the new methodology.
— Since 2022, waste volumes per type of disposal method havebeen detailed for hazardous and non-hazardous waste. Waste
data from 2019, 2020, and 2021 have not been restated accordingly to the new level of granularity.
— All information disclosed in the “Procurement” chapter refers
to tier 1 suppliers.

S ika Methodology for Scope 3 Emissions Calculation

The methodological note needs to be read in conjunction with thefootnotes described in all sections of the Sustainability Report
2023 for dedicated indicators and KPIs.

ESG DATA GOVERNANCE INCLUDINGREBASELINING
In the context of its SBTI commitment and with a dynamic ESG
data landscape continuously changing, Sika defined an internal
ESG data governance policy in 2023 to ensure consistency, reliability, and traceability in data reporting. This governance framework,
applied from 2023 onwards, provides systematic guidance for thefollowing cases:— Changes in reporting structure: structural changes such as
merger and acquisitions, divestitures, or outsourcing of business activities.
— Reporting errors: calculation error, reporting mistakes or missing data.
— Methodological changes: scientific research changing themethodology, advancement in emission measurement technologies, changes in methodologies of calculation, changes
in regulatory requirements, shift from one emission factor
database to another, update of emission factor database due
to methodological changes related to calculation update or
error, more specific data available.
— Change of emission factors: change from average emission
factor to supplier-specific emission factor, more precise emission factors that were unavailable in the database in previous
years, regular update of database (average) such as Sphera,
IAE, Defra, or GLEC, etc. (assuming that these updates reflect
real change in GHG emissions; for example resulting from achange of energy mix in electricity supply).

SIKA SUSTAINABILITY REPORT 2023
Methodological note

150

ESG REBASELINING AND ADJUSTMENT GOVERNANCEENVIRONMENT
GHG
emissionsscope 1
and 2

GHG
emissionsscope 3

SOCIAL AND GOVERNANCE
Water
and
waste

OthersHealthandsafetyFTE
andheadcount

OthersAcquisition and divestment
With baseline
Without baseline

Rebaselining*
N/A

Per closing date
Per closing date

Per closing date

Methodology changeWith baseline

Without baseline

Rebaselining based on +/–5% of Group total

N/A

Restatement PY
based on +/–5% orless of Group total

Rebaselining based on +/–5% of Group total
Restatement PY based on +/–5% ofGroup total

Error
With baseline

Without baseline

Rebaselining based on +/–5% of Group total

N/A

Restatement PY
based on +/–5% ofGroup total

Rebaselining based on +/–5% of Group total
Restatement PY based on +/–5% ofGroup total

Change of emission factors
With baseline
Without baseline

Considered in the following year**
N/A

Considered in thefollowing year**

N/A
N/A

With baseline: Corresponds to KPIs for which Sika has goals compared to a reference year.
Without baseline: Corresponds to KPIs for which Sika does not compare to a reference year.

General Remarks+/– 5%		 		This threshold needs to be considered per dimension of impact and for scope 1, 2, and 3 GHG emissions based on the absolute
CO2eq amount of the most recent year. Sika might consider rebaselining/restatement for impacts below +/–5%. Sika will track
the changes cumulatively and review them on a two-three year basis for potential rebaselining.
*Rebaselining		Newly acquired companies will be assessed for rebaselining even if the impact is lower than 5%.
If data of an acquired company is not available, the closest succeeding available data is used as a proxy for the baseline andacquisition year. If no emission data is available at all, one option is to use the revenue of the former years multiplied by
the acquired company’s ratio of GHG emissions per revenue (tCO2eq/CHF).
**Change emission factors

In the event of new scientific findings on emission factors and global warming potentials, these will be taken into account in
the calculation of the GHG emissions in the following year.
Scope 1–2: All factors are updated in January of the following year.
Scope 3 per category: All average factors are updated once a year.

SBTi net zero consideration

Sika will track the changes cumulatively since the last rebaselining and will review them on a two to three-year basis for potential
rebaselining according to the SBTi Target Validation Protocol. This approach excludes acquisitions since newly acquiredcompanies will be systematically assessed for rebaselining. Additionally, Sika will not resubmit all rebaselinings to the SBTi in
consideration of the normal five years target review.

SIKA SUSTAINABILITY REPORT 2023
Methodological note

151

I

Independent practitioner's limited
assurance reporton selected 2023 Sustainability Indicators to the Board of Directors ofSika AGBaar
We have been engaged by Board of Directors to perform assurance procedures to provide limited assurance on selected 2023 Sustainability Indicators of Sika AG and its consolidated subsidiaries (hereinafter “Sika”) contained within
Sika AG’s Sustainability Report 2023 (including the GHG reporting) for the period from 1 January 2023 to 31 December
2023 (hereinafter “Sika’s Sustainability Report”).
Scope and subject matter
The following selected 2023 Sustainability Indicators were subject to our limited assurance engagement (“2023 Selected
Indicators”) and represent the subject matter information:•

Scope 1 GHG emissions (tons of CO2eq), table 1 on page 106;•

Scope 2 – Market-based (tons of CO2eq), table 1 and Scope 2 – Location-based (tons of CO2eq) GHG emissions,table 4 on page 106;•

GHG emissions intensity (kg CO2eq) per ton sold, table 1 on page 106;•

Scope 3 GHG emissions, table on page 88;oooCategory 1 Purchased goods and services
Category 2 Capital goods
Category 3 Fuel- and energy-related activitiesoCategory 4 Upstream transportation and distributionoCategory 5 Waste generated in operationsoooCategory 6 Business travel
Category 7 Employee commuting
Category 8 Upstream leased assetsoCategory 9 Downstream transportation and distributionoCategory 11 Use of sold productsoCategory 12 End-of-life treatment of sold products•

Breakdown of energy consumption per source (TJ), table on page 90;•

Energy intensity per ton sold (MJ per ton sold), table 7 on page 107;•

Purchased renewable electricity rate, table 10 on page 108;•

Water consumption per ton sold (m3), table 12 on page 108;•

Total Waste generated (tons) and Waste intensity (kg per ton sold), table 16 on page 109;•

Recycling rate (%), table 18 on page 110;•

Number of lost time accidents (LTA) (No.) and Number of fatalities of Sika employees, table on page 57;•

LTA rate per 1’000 FTEs, table on page 57;•

Lost Time lnjury Frequency Rate (LTIFR) per 200'000 hours, table on page 57;•

Number of lost time accidents (LTA) (No.) of contractors and Number of fatalities of contractors, table on page 57;•

Community engagement projects (No.), table on page 76;•

Volunteering days of employees (Days), table on page 76;

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•

Breakdown of Employees per Gender and Category, table 18 on page 82;•

Board of Directors - Breakdown per Gender and Age, table 19 on page 82; and•Breakdown of Senior Managers per region, table 20 on page 82.

With reference to pages 88 and 147 in Sika’s Sustainability Report, Sika discloses the fact that during the period underreview, the scope of consolidation of the Sustainability reporting was expanded with the acquisition of the companies
MBCC Group and Thiessen Team USA. Our limited assurance engagement does not conclude on pre-acquisition information, on comparative prior year figures, or any prospective information included in Sika’s Sustainability Report. Consequently, we do not comment on, nor conclude on any such information.
Criteria
The 2023 Selected Indicators (including the GHG statement) were evaluated against the criteria described in Sika’s Sustainability Report. The 2023 Selected Indicators contained within Sika's Sustainability Report (including the GHG reporting) were prepared by the Group Management of Sika AG (the “Company”) based on the criteria summarised in Methodological Note in the Sustainability Report.
The section “Methodological Note" was developed based, among others, on the GRI Sustainability Reporting Standards(GRI Standards 2021) published by the Global Reporting Initiative (GRI) and the Greenhouse Gas (GHG) Protocol Corporate Standard (Revised edition) and Sika’s Methodology for Scope 3 emissions calculation available on Sika’s website(together the "suitable Criteria").
Inherent limitations
The accuracy and completeness of the 2023 Selected lndicators contained within Sika's Sustainability Report (including
the GHG reporting) are subject to inherent limitations given their nature and methods for determining, calculating andestimating such data. In addition, the quantification of the 2023 Selected lndicators contained within Sika's Sustainability
Report (including the GHG reporting) are subject to inherent uncertainty because of incomplete scientific knowledge
used to determine factors related to the 2023 Selected lndicators contained within Sika's Sustainability Report (including
the GHG reporting) and the values needed to combine e.g. emissions of different gases. Our assurance report will therefore have to be read in connection with the suitable Criteria as defined above and described within Sika’s Sustainability
Report in the Methodological Note and in Sika’s Methodology for Scope 3 emissions calculation for relevant definitions
and procedures on the 2023 Selected Indicators.
Group Management’s responsibility
The Group Management of Sika AG is responsible for preparing the 2023 Selected Indicators contained within Sika's
Sustainability Report in accordance with the suitable Criteria. This responsibility includes the design, implementation andmaintenance of the internal control system related to the preparation of the 2023 Selected Indicators contained within
Sika's Sustainability Report that are free from material misstatement, whether due to fraud or error. Furthermore, theGroup Management is responsible for the selection and application of the suitable Criteria.
Independence and quality management
We are independent of the Sika AG in accordance with the International Code of Ethics for Professional Accountants(including International Independence Standards) issued by the International Ethics Standards Board for Accountants(IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code, which is foundedon fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional
behaviour.
PricewaterhouseCoopers AG applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliancewith ethical requirements, professional standards and applicable legal and regulatory requirements.
Practitioner’s responsibility
Our responsibility is to perform an assurance limited engagement and to express a conclusion on the 2023 Selected
lndicators contained within Sika's Sustainability Report (including the GHG reporting). We conducted our engagement inaccordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) ‘Assurance engage-

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Auditing and Assurance Standards Board. Those standards require that we plan and perform our procedures to obtain
limited assurance whether anything has come to our attention that causes us to believe that the 2023 Selected lndicators contained within Sika's Sustainability Report (including the GHG reporting) were not prepared, in all material aspects, in accordance with the suitable Criteria.
Based on risk and materiality considerations, we performed our procedures to obtain sufficient and appropriate assurance evidence. The procedures selected depend on the assurance practitioner’s judgement. A limited assurance engagement under ISAE 3000 (Revised) and ISAE 3410 is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Consequently, the nature, timing and extent of procedures forgathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance engagement andtherefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance engagement.
We performed the following procedures, among others:•

Assessment of the Methodological Note in the Sustainability Report and Sika’s Methodology for Scope 3 emissions
calculation, including the criteria to determine whether they are appropriate when applied in relation to the 2023 Selected Indicators (including the GHG statement);•

Inquiries of the relevant stakeholders for the 2023 Selected Indicators in Sika’s Sustainability Report (including the
GHG reporting);•

On-Site visits for selected Sika sites in USA, Canada, Chile, Argentina, Brazil, Mexico, China, Indonesia, Japan,
Romania, Germany, Italy, Czech Republic, Spain and Morocco. The selection was based on quantitative and qualitative criteria;•Interviews with personnel responsible for the sustainability reporting and data collection at the selected Sika sites
visited and at the Corporate level to determine the understanding and application of Sika’s specified guidelines andmethodology;•

Sample based inspection of relevant documents and testing of underlying data;•

Reconciliation of data collected with financial reporting data and other underlying records;•

Reperformance of relevant calculations; and•Analytical procedures on selected site-level, as well as Corporate level.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Conclusion
Based on the work we performed, nothing has come to our attention that causes us to believe that the 2023 Selected
lndicators (including GHG reporting) of Sika AG, for the period from 1 January 2023 to 31 December 2023, as publishedin Sika’s Sustainability Report 2023 and in the Annual Report 2023, are not, in all material respects, prepared in accordance with the suitable Criteria.
Intended users and purpose of the report
This report is prepared for, and only for, the Board of Directors of Sika AG, and solely for the purpose of reporting tothem on the 2023 Selected lndicators contained within Sika's Sustainability Report (including the GHG reporting) and noother purpose. We do not, in giving our conclusion, accept or assume responsibility (legal or otherwise) or accept liability
for, or in connection with, any other purpose for which our report including the conclusion may be used, or to any otherperson to whom our report is shown or into whose hands it may come, and no other persons shall be entitled to rely on
our conclusion.

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We permit the disclosure of our report, in full only and in combination with the suitable Criteria, to enable the Group Management and the Board of Directors to demonstrate that they have discharged their governance responsibilities by commissioning an independent assurance report over the 2023 Selected Indicators in Sika’s Sustainability Report (including
the GHG reporting), without assuming or accepting any responsibility or liability to any third parties on our part. To thefullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Group Management
or the Board of Directors of Sika AG for our work or this report.
PricewaterhouseCoopers AG

Thierry Troesch

Christine Blass

Zürich, 14 February 2024

‘The maintenance and integrity of Sika AG’s website and its content are the responsibility of the Group Management; the work carried out by the assurance provider does not involve consideration of the maintenance andintegrity of the Sika AG's website, accordingly, the assurance providers accept no responsibility for any changes
that may have occurred to the reported 2023 Selected Indicators contained within Sika's Sustainability Report(including the GHG reporting) or suitable Criteria since they were initially presented on the website.”

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