Annual Report 2021

Annual Report 2021

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Sustainability strategy

Sustainability strategy

For Geberit, sustainability means being oriented towards the future as well as operating and being successful over the long term. A long-term orientation means striking a balance between economic, environmental and social aspects in all decision-making processes. In addition to sustained high profitability, value is simultaneously created for many other stakeholders: innovative, design-oriented and sustainable products; training and education of plumbers, sanitary engineers and architects; the smallest possible environmental footprint along the entire value chain; production plants with prospects for employees in numerous regions; a cooperation with suppliers and business partners that is based on fairness; and leadership for sustainable development in the sanitary industry. The graphic below shows how Geberit implements integrated sustainability and thus creates value. The vision of achieving sustained improvement in the quality of people’s lives with innovative sanitary products represents the starting point. To bring this vision to fruition, Geberit continuously refines its products, systems and services and sets new standards as a market leader in the area of sanitary products. Values such as integrity, team spirit, enthusiasm, modesty and an ability to embrace change are core factors. The long-term core strategy is based on four pillars: Focus on sanitary products, Commitment to design and innovation, Selective geographic expansion and Continuous optimisation of business processes. This strategy is implemented on the basis of six growth and earnings drivers. The sustainability strategy supplements the core strategy and the growth and earnings drivers with twelve concrete modules. These modules strengthen the business model and generate added value for various stakeholders in the areas People, Planet and Profit in a targeted manner. The results of these activities show the diverse added value in the three dimensions of sustainability. At the same time, the results contribute to the UN Sustainable Development Goals (SDGs) set out in the 2030 Agenda for Sustainable Development (see SDG Reporting). Goal number 6 – “Clean Water and Sanitation” – and goal number 11 – “Sustainable Cities and Communities” – are a key focus for Geberit. However, significant contributions are also made when it comes to “Decent Work and Economic Growth” (goal number 8) and “Industry, Innovation and Infrastructure” (goal number 9). The modules of the sustainability strategy bundle current and future projects, initiatives and activities. Each module contains clear responsibilities with measurable objectives, derived measures and quantifiable key figures for effective monitoring.

Sustainability Strategy (graphic)
Value
Creation
Materiality analysis
Sustainability strategy
Mission
We continuously improve the quality of people’s lives with innovative sanitary products.
Resources
People
Planet
Profit
11,809
employees
Info
278
apprentices
Info
11,3 hours
training and education per employee
Info
CHF 9.7 million
on workshops for disabled persons, meaningful work for about 550 people
Info
505 GWh
combustibles consumption (+7.2%)
Info
232 GWh
electricity consumption (+7.4%), 85 GWh green electricity, 49.5 % renewable energy
Info
925,230 m3
water consumption (-2.9%)
Info
CHF 169 million
Investments in property, plant and equipment and intangible assets
Info
CHF 78 million
R&D expenditures
Info
59.0 %
Equity ratio
Info
41
Number of new patents
Info
Values and Strategy
Values
  • Integrity
  • Team spirit
  • Enthusiasm
  • Modesty
  • Ability to renew ourselves

Geberit Compass as PDF
Read more about our values

Read more
Strategy
Focus on sanitary products
Geberit concentrates on sanitary and piping systems for transporting water in buildings, as well as bathroom ceramics and furniture. In these areas, Geberit has comprehensive know-how and supplies high-quality, integrated and water-saving sanitary technology as well as attractive design.
Commitment to innovation and design
Continuously optimising and extending the product range is crucial for future success. Innovative strength is founded on research in areas such as hydraulics, statics, fire protection, hygiene and acoustics, as well as process and materials technology. The insights gained are systematically applied in the development of products and systems for the benefit of customers. Here, the aspects of design are constantly growing in importance.
Selective geographic expansion
An important factor in long-term success is stronger growth in the markets in which Geberit products or technology are still under-represented. Outside Europe, Geberit concentrates on the most promising markets. These include North America, China, Southeast Asia, Australia, the Gulf Region, South Africa and India. With the exception of North America and Australia, the company mainly engages in project business in these markets. The company always adheres strictly to the existing high standards in terms of quality and profitability.
Continuous optimisation of business processes
Efficient processes will help to establish a leading and competitive cost structure on a long-term basis. Process optimisation will be partly achieved through Group-wide projects and partly through employees identifying improvement potential in their day-to-day work, thus making a major contribution toward positive development.
Growth and earnings drivers
  • «Push-Pull» sales model
  • Technology penetration
  • Value strategy
  • Geberit AquaClean initiative
  • Innovation leadership
  • Continuous process and cost optimisation

Medium-term goals

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Results
People
Planet
Profit
50 %
managerial positions filled with internal candidates
Info
85 %
transfer rate of apprentices
Info
AFR 7.9
accidents per million working hours performed
Info
26/26
production plants certified in accordance with ISO 45001
Info
40.9 %
Improvement of eco-efficiency since Sanitec acquisition
Info
217,009 t
CO2 emissions, reduction target achieved ahead of time
Info
26/26
production plants certified in accordance with ISO 14001
Info
3,590
million m3
water saved due to Geberit products
Info
+ 14.7 %
Currency-adjusted net sales growth
Info
30.9 %
Operating cashflow margin
Info
CHF 809 million
Free Cashflow
Info
CHF 21.34
Earnings per share
Info
Creating value for

Employees

Society

Environment

Customers

Shareholders

Materiality analysis
Sustainability strategy

The following pages provide an overview of the sustainability modules with important facts and achievements from 2021 as well as the outlook for 2022 to 2024. The current sustainability strategy covers the entire Geberit Group and shows how Geberit intends to be a pioneer and leader in the area of sustainability in the sanitary industry.

People

Employees & corporate culture

Icon People (icon)

Geberit positions itself as an attractive employer and strives to offer jobs of the highest quality. Geberit supports disadvantaged employees and apprentices.
 

Important facts and achievements 2021

  • Group-wide roll-out of the revised valYOU performance management process for white collar employees and pilot phase for blue collar employees, combined with a training course for managerial staff.
  • Potentials Management Programme for talented prospects within the company. Establishment and development of management, methodological and social skills in preparing for the next career step.
  • Operations Development Programme (ODP) for talented internal and external prospects in Operations.
  • Promotion of decentralised collaborations with universities, plus active participation in the international UNITECH and BEST networks.
  • Development programme for over 100 regional sales managers from European sales companies based on standardised management principles and instruments.
  • Employment of 278 apprentices with a transfer rate to a permanent employment relationship of 85%.
  • Group-wide employee survey with good to very good results overall. Derivation of suitable measures at the local companies.
  • Execution of an equal pay analysis conducted by PwC in Switzerland confirming that equal pay between female and male employees is upheld.

Outlook for 2022 to 2024

  • Roll-out of the valYOU process in all companies for blue collar employees.
  • Introduction of a standardised Group-wide management training course, particularly for new managerial staff.
  • Further development of the Operations Development Programme (ODP) for internal and external managerial staff in Sales and Marketing.
  • Execution of a leadership programme with the Business School at the University of St. Gallen for around 200 members of senior management.
  • Continuation of the development programme for managerial staff at the sales companies.
  • Targeted support for transfer of apprentices to a permanent position. Target rate is 75%.
  • Implementation of the measures defined as a result of the employee survey.

Important facts and achievements 2021

  • Group-wide roll-out of the revised valYOU performance management process for white collar employees and pilot phase for blue collar employees, combined with a training course for managerial staff.
  • Potentials Management Programme for talented prospects within the company. Establishment and development of management, methodological and social skills in preparing for the next career step.
  • Operations Development Programme (ODP) for talented internal and external prospects in Operations.
  • Promotion of decentralised collaborations with universities, plus active participation in the international UNITECH and BEST networks.
  • Development programme for over 100 regional sales managers from European sales companies based on standardised management principles and instruments.
  • Employment of 278 apprentices with a transfer rate to a permanent employment relationship of 85%.
  • Group-wide employee survey with good to very good results overall. Derivation of suitable measures at the local companies.
  • Execution of an equal pay analysis conducted by PwC in Switzerland confirming that equal pay between female and male employees is upheld.

Outlook for 2022 to 2024

  • Roll-out of the valYOU process in all companies for blue collar employees.
  • Introduction of a standardised Group-wide management training course, particularly for new managerial staff.
  • Further development of the Operations Development Programme (ODP) for internal and external managerial staff in Sales and Marketing.
  • Execution of a leadership programme with the Business School at the University of St. Gallen for around 200 members of senior management.
  • Continuation of the development programme for managerial staff at the sales companies.
  • Targeted support for transfer of apprentices to a permanent position. Target rate is 75%.
  • Implementation of the measures defined as a result of the employee survey.

Health & safety

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Geberit operates safe production plants and logistics sites, and promotes a health and safety culture at a high level.
 

Important facts and achievements 2021

  • Global certification of all production plants and central logistics in accordance with ISO 45001 (occupational health and safety).
  • Exchange of best practices and accident analyses encouraged.
  • Decrease in the accident frequency rate (AFR) by 11.2% to 7.9 (accidents per million working hours) and in the accident severity rate (ASR) by 11.1% to 152.8 (days lost per million working hours). The absenteeism rate due to accidents and illness was 4.71%.
  • Increased occupational health and safety and ergonomics as part of the continuous optimisation and modernisation of processes and systems, by replacement of hazardous substances, by reduction of noise emissions and by the use of robots and lifting aids.
  • The comprehensive “Vital” healthcare programme is offered at six locations, which represent around 40% of the entire workforce.
  • Start of an eLearning programme to raise awareness of behaviour-related accidents.
  • Implementation of the action plan for reducing quartz dust, including measurements and monitoring of targets in the ceramics plants.
  • Final roll-out of the software for capturing and monitoring accident data.

Outlook for 2022 to 2024

  • Halving of the accident frequency rate and accident severity rate between 2015 and 2025; AFR target: 5.5; ASR target: 90.
  • Implementation of audits across plants.
  • Further improvement in ergonomics, particularly in the ceramics plants and in logistics.
  • Expansion of the measures in the “Vital” programme to additional countries and sites.
  • Continuation of the eLearning programme on occupational safety in the production plants and logistics.
  • Continuation of the action plan for reducing quartz dust.

Compliance & governance

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Geberit complies with all laws, guidelines, norms and standards. Geberit checks the effectiveness of its internal monitoring systems and guidelines and implements appropriate measures in the event of misconduct.

Important facts and achievements 2021

  • The review of adherence to the Geberit Code of Conduct in all organisational units and in interviews conducted by the Internal Audit Department with managing directors on topics from the Code of Conduct resulted in the discovery of no significant breaches.
  • Two incidents were reported via the Geberit Integrity Line for employees, and no incident was reported via the Integrity Line for suppliers.
  • Processing of enquires from various countries on the permissibility of marketing and sales campaigns under antitrust legislation.
  • Revision of the eLearning programme on antitrust legislation at sales companies outside Europe. Comprehensive training activities and execution of numerous internal audits in the area of antitrust legislation.
  • Further expansion of data-protection compliance, comprehensive training activities, execution of numerous internal audits, plus external auditing.
  • Execution of an external audit of the Geberit compliance organisation by KPMG focusing on antitrust legislation, corruption, product liability, employee rights and sustainability, with good results achieved overall.

Outlook for 2022 to 2024

  • Roll-out of the eLearning programme on antitrust legislation for markets outside Europe.
  • Regular training activities and execution of audits in the area of antitrust legislation in collaboration with the Internal Audit Department.
  • Further development of data-protection compliance, regular training activities and execution of audits in collaboration with the Internal Audit Department.
  • Further roll-out of the EHS compliance tool in production plants and logistics in Europe.

Social responsibility

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Geberit fulfils social responsibilities in society within the scope of the UN Sustainable Development Goals.
 

Important facts and achievements 2021

  • Geberit employees contributed 1,650 hours of charitable work as part of social projects.
  • Partnership with the Swiss development organisation Helvetas on the topic of drinking water and sanitary facilities in developing countries.
  • A social project was carried out in Ukraine with eight Geberit apprentices. Renovation and new construction of sanitary facilities at a vocational school and student hall of residence.
  • Workshops for disabled persons were commissioned with simple assembly and packaging work totalling CHF 9.7 million, thus giving around 550 people meaningful work.
  • Reuse of ceramic products that are no longer required in various social institutions in Moldova.

Outlook for 2022 to 2024

  • Performance of a volunteering project in Nepal with Polish employees in collaboration with Helvetas.
  • Implementation of a social project in Turkey with apprentices.
  • Review of the effectiveness of social projects two to three years after their implementation.

Planet

Resources & circular economy

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Geberit conserves natural resources and practises the circular economy along the value chain.
 

Important facts and achievements 2021

  • The absolute environmental impact increased by 4.0%, while the environmental impact in relation to currency-adjusted net sales (eco-efficiency) was reduced by 9.3%. This figure is clearly above the target of 5% per year.
  • Global certification of all production plants and central logistics in accordance with ISO 14001 (environment). Renewal of the Group certificate with validity until 2024.
  • The number of hazardous substances used in the production plants was reduced by 3%.
  • Internal recycling of around 10,000 tonnes of plastic waste from production, with 957 tonnes of high-quality ABS regranulate and 4.2 tonnes of PP regranulate used.
  • Participation in Operation Clean Sweep to prevent the pollution of the environment with plastic pellets.
  • Resource efficiency was improved in ceramic production by 6.1% to 0.45 kg waste/kg ceramic. 13.1% improvement since 2018, thus exceeding the three-year target (10%).

Outlook for 2022 to 2024

  • Improvement of eco-efficiency by 5% per year.
  • Reduction of hazardous substances in production plants by 5% per year.
  • Search for further high-quality plastic regranulates.
  • Identification of ways in which to close internal material cycles and make production waste useful as secondary materials.
  • Participation in TEPPFA study on the overall consideration of environmental aspects in the plastic pipe industry.
  • Reduction of scrap rate and improvement of resource efficiency in ceramic production by a further 10% from 2021 to 2024 to 0.4 kg waste/kg ceramic.

Energy & CO2

Icon Planet (icon)

Geberit actively contributes to climate change mitigation and consequently reduces its energy consumption and CO2 emissions.
 

Important facts and achievements 2021

  • Increase of absolute CO2 emissions (Scopes 1 and 2) by 5.1% to 217,009 tonnes, and reduction of CO2 emissions in relation to currency-adjusted net sales (CO2 intensity) by 8.4%.
  • Improvement in CO2 intensity of 38.3% since the acquisition of the ceramics business, meaning the target for 2021 was exceeded.
  • The volume of purchased green electricity increased by 17 GWh to 85 GWh. Renewable energy sources accounted for 49.5% of electricity and 5.0% of combustibles.
  • 4.0 GWh of green electricity was produced in Givisiez (CH) and Pfullendorf (DE).
  • Addition of a PV installation on the logistics building in Alsager (UK), plus replacement of existing lighting with LED technology.
  • Five German production plants received ISO 50001 certification (energy).
  • Update to the CO2 strategy with comprehensive targets and measures, introduction of an internal CO2 reference price and establishment in the bonus matrix.

Outlook for 2022 to 2024

  • Same improvement in CO2 intensity as for eco-efficiency by 5% per year in the medium term.
  • Reduction of absolute CO2 emissions (Scopes 1 and 2) by 47% between 2015 and 2035 to 136,000 tonnes (organic, according to SBTi WB2D).
  • Introduction of an energy/CO2 master plan at the plants with the largest carbon footprint (including ceramics plants).
  • Evaluation of technologies for carbon-neutral ceramics production.
  • Project for reusing ceramic waste for new products.
  • Purchase of an additional 20 GWh of certified green electricity in Poland and Germany.
  • Fuel-reduction plan for new vehicles and promotion of electromobility.

Water

Icon Planet (icon)

Geberit supports the economical and careful use of water along the value chain.
 

Important facts and achievements 2021

  • Almost 100% of the water consumed by Geberit can be attributed to the product usage phase.
  • Since 1998, some 38,210 million m3 of water has been saved to date through the use of water-saving flushing systems. In 2021 alone, the water saved amounted to 3,590 million m3.
  • Water consumption in ceramic production reduced by 9.5% to 5.9 l/kg ceramic. 10.3% improvement since 2018, thus exceeding the three-year target (5%).

Outlook for 2022 to 2024

  • Registration of additional water-saving products in accordance with the European water label.
  • Reduction of the amount of water consumed in ceramic production by a further 5% from 2021 to 2024 to 5.6 l/kg ceramic.

Eco-design & sustainable products

Icon Planet (icon)

During the development process, Geberit products are optimised with regard to their environmental friendliness, resource efficiency, recyclability and durability. Environmental aspects are already considered during technology development.
 

Important facts and achievements 2021

  • Over 170 eco-design workshops have been held in product development since 2007.
  • A wide range of product improvements has been made with regard to environmental friendliness:
    • Further roll-out of the Geberit iCon toilet range with Rimfree Plus technology and new flush valve type 212, with optimal setting of the flush volume and very good flush performance.
    • New fill and flush valves for floor-standing WCs in the Nordic markets, with flush volumes of 4/2 litres and the share of plastic regranulate used exceeding 50%.
    • New Geberit FlowFit drinking water system: hydraulically optimised, ergonomically enhanced, halogen-free and with a system for returning used protective caps and pressing indicators.

Outlook for 2022 to 2024

  • Systematic continuation of eco-design workshops for product development.
  • Integration of “Design for Recycling” principles in product development.
  • Search for alternative materials or a combination of existing materials for optimising resource efficiency in sanitary products.
  • Expansion of the product portfolio to support sustainable building.

Profit

Sustainable supply chain

Icon Profit (icon)

Suppliers demonstrably comply with Geberit’s high standards for environmentally friendly and socially responsible production.
 

Important facts and achievements 2021

  • The Code of Conduct was signed by 2,568 suppliers. This equates to over 90% of the total procurement value. No incidents were reported via the Integrity Line for suppliers.
  • EHS (Environment, Health and Safety) audits were conducted and tracked, particularly in the highest sustainability risk category. This comprises 171 suppliers (some 8% of the procurement value).
  • The supplier sustainability risk matrix was updated, with five third-party EHS audits carried out at suppliers in China.
  • Regular training on procurement and sustainability at the sales organisation. Participation in a working group of the UN Global Compact on sustainable supply chains.
  • Revised purchasing strategy focusing on the total value of ownership, plus a holistic assessment of suppliers, including sustainability aspects.

Outlook for 2022 to 2024

  • All new suppliers have to sign the Code of Conduct.
  • Further EHS audits of suppliers are to be carried out by Geberit and external partners, with the corrective measures being checked.
  • Analysis of existing and new laws on supply chains in Europe together with the derivation of suitable measures.
  • Integration of EHS audits in the newly developed internal audit tool.
  • More intensive collaboration with suppliers in the area of sustainability and CO2.

Green production

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Geberit procures, builds and operates durable and high-quality infrastructures such as buildings, equipment and tools.
 

Important facts and achievements 2021

  • Closure of three smaller plants in Daishan (CN), Elyria (US) and Dymer (UA). Expansion of logistics in Pune (IN) and preparatory work for the construction of a new production hall in Lichtenstein (DE).
  • 209 injection moulding machines with energy-efficient drive technology (hybrid, fully electrical, standby) and commissioning of a fifth fully electrical blow-moulding machine.
  • Process optimisation in the production of welded Mapress Stainless Steel fittings in order to improve efficiency, quality, waste and ergonomics, while also simultaneously reducing pickling step by step.
  • Manufacture of a WC seat and lid using recyclable thermoplastics instead of non-recyclable duroplast plastics in Pfullendorf (DE).
  • Replacement of conventional plaster casting systems with modern high-pressure casting systems in Kolo (PL) and Slavuta (UA) in order to increase efficiency, improve ergonomics and reduce raw material consumption and plaster waste.

Outlook for 2022 to 2024

  • Further increase in the number of injection moulding machines with energy-efficient drive technology from 209 to 239. Commissioning of a sixth fully electrical blow-moulding machine.
  • Continued process optimisation in the production of welded and straight Mapress fittings.
  • Replacement of existing systems with the latest generation of WC high-pressure casting systems in Ekenäs (FI) in order to increase efficiency while simultaneously reducing energy and water consumption.
  • Modernisation of raw material processing, including the installation of silos and conveyor systems and automatic dosing in order to increase efficiency and reduce dust emissions.
  • Step-by-step automation of the glazing process in Carregado (PT) in order to increase efficiency, improve ergonomics and reduce raw material consumption.

Green logistics

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Geberit optimises its logistics with regard to energy consumption, emissions and packaging.

Important facts and achievements 2021

  • The transport service providers handled 672.3 million tkm, which was up on the previous year (528.6 million tkm) mainly due to sales growth, an increase in deliveries to far-away countries and adjustments in data collection. This resulted in CO2 emissions of 77,292 tonnes (previous year 61,653 tonnes).
  • Increased share of state-of-the-art Euro 6 trucks at 82% (previous year 73%).
  • Four trucks powered by natural gas in operation between Jona (CH) and Pfullendorf (DE) and on other routes.
  • The optimised calculation and better utilisation of freight capacity as well as the bundling of long-goods deliveries reduced the number of trips required. Around 325 truck journeys were saved thanks to the double stacking of cisterns for major customer deliveries in Germany.
  • The eco-efficiency of logistics (environmental impact per tkm) has improved by 31% since 2015.
  • The ongoing reduction of the amount of packaging saves resources and reduces the environmental impact.

Outlook for 2022 to 2024

  • Further optimisation of loading capacity through scheduling and organisational changes as well as the use of larger shipping containers.
  • More intensive use of Euro 6 vehicles.
  • Identification of suitable alternative drive technologies for trucks as part of a pilot project with a transport service provider.
  • Optimisation of packaging quantities taking into account the optimal protection and transportability of the products.

Sustainable building

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Geberit has in-depth expertise in the fields of water conservation, quality of drinking water, sound insulation, hygiene and cleanliness. Geberit is the leading partner in the planning and implementation of first-class sanitary solutions for sustainable building.

Important facts and achievements 2021

  • A broad range of Geberit products that help with the implementation of sustainable building concepts and standards such as LEED, BREEAM, DGNB and Minergie.
  • Member of various sustainable building associations in CH, DE, ES, US and AU.
  • Over 95% of bathroom furniture of the Geberit brand and all new bathroom furniture is FSCTM certified (FSC-C134279).
  • Two new Environmental Product Declarations created for Geberit Mapress pipes and fittings in accordance with the EN 15804 standard. In total, products with an EPD account for 23% of Group sales.
  • With 76 out of 100 points, Geberit attained Platinum status as a supplier on the EcoVadis platform for sustainable supply chains for the second year running.
  • BIM product data available for the entire Geberit range, with the Revit plug-in already downloaded over 6,500 times.

Outlook for 2022 to 2024

  • Training and development of expertise in the field of sustainable building at the sales companies.
  • 100% of bathroom furniture of the Geberit brand and over 80% of the remaining bathroom furniture is FSCTM certified (FSC-C134279).
  • Creation of further Environmental Product Declarations and simplification of the creation process.
  • More systematic recording of environmentally relevant product data, i.e. for BIM.