Communication on Progress UNGC

Human rights
Principle 1: Support and respect the protection of internationally proclaimed human rights in the company’s own area of influence		When hiring employees and determining their assignment in the company, Geberit attaches great importance to qualifications appropriate to the task description. In accordance with their qualifications, the majority of Geberit employees at the production sites and sales companies are paid well above the minimum wage range. This considerably reduces the risk of human rights violations. See Management approach employment In its Code of Conduct, Geberit undertakes to be an exemplary, reliable and fair business partner and employer at all times. As a fair partner, Geberit recognises all laws, directives and internationally recognised standards as well as the UN Guiding Principles on Business and Human Rights, and complies with them in full. All new employees at Geberit are trained on the Code of Conduct as part of the Welcome events. See Geberit Code of Conduct, GRI 2-24 Compliance with the Code of Conduct is monitored Group-wide as part of an annual survey and supplemented by internal audits on site. There were no breaches related to human rights in 2022. See GRI 2-24 The Geberit Integrity Line gives all employees the opportunity to report irregularities anonymously. Three cases were recorded by the Integrity Line for employees in 2022. All cases were followed up and are now closed, including the two cases from the previous year.
Principle 2: Make sure the company is not complicit in human rights abuses		With respect to human rights abuses, the greatest risk for Geberit lies with suppliers, who can be influenced only indirectly. Geberit does all it can to minimise this risk and requires that business partners and suppliers comply with comprehensive standards. See Sustainability strategy, Management approach procurement The Code of Conduct for Suppliers is intended to ensure that Geberit’s suppliers act in accordance with internal and external guidelines, such as the UN Guiding Principles on Business and Human Rights and the ILO core labour standards. As of the end of 2022, a total of 3,296 direct and indirect suppliers had signed the Code of Conduct. This equates to over 90% of the total procurement value. In 2022, 167 existing suppliers were identified in the highest risk category as defined by Geberit, which corresponds to around 7% of the procurement value of Geberit. A systematic planning and performance of audits is conducted for these suppliers. See Code of Conduct for Suppliers, Management approach procurement In 2022, four third-party audits were carried out at suppliers in China, Turkey and Bosnia and Herzegovina. The results showed that the majority of obligations set out in the Code of Conduct for Suppliers were complied with. Appropriate corrective measures were agreed in cases of non-compliance. See GRI 414-2

Labour practices
Principle 3: Uphold the freedom of association and the effective recognition of the right to collective bargaining		No rights with respect to exercising the freedom of association or collective bargaining as defined in the ILO core labour standards are subject to restriction at the Geberit Group. This is verified annually as part of a Group-wide survey. No restrictions were in effect in 2022. See GRI 407 There are currently 9,635 employees (corresponding to 81% of the workforce) who are covered by collective agreements (e.g. collective labour agreements, wage agreements). In Germany, Austria, Switzerland, France, Italy, Finland, Sweden, Poland and Ukraine, around 90% of employees are subject to a collective labour or wage agreement. There are no collective agreements with employees in place in the USA. The employment conditions of employees who are not covered by collective agreements are also in line with market standards. See GRI 2-30
Principle 4: Uphold the elimination of all forms of forced and compulsory labour Principle 5: Uphold the effective abolition of child labour		Geberit’s exposure with respect to forced or child labour is considered low because of its industry, business model and the countries in which business activities are carried out, its high level of vertical integration as well as its high quality requirements in the supply chain. See GRI 408, GRI 409 Geberit categorically rejects all forms of forced and child labour. According to the annual Group-wide survey, no cases of forced and compulsory or child labour were discovered in 2022, nor were any cases revealed during the course of the audits performed among the suppliers. The basic principles established in the Code of Conduct for Suppliers expressly include compliance with the ILO core labour standards for the exclusion of forced or child labour. See GRI 408, GRI 409
Principle 6: Uphold the elimination of discrimination in respect of employment and occupation		The Geberit Code of Conduct clearly specifies how employees are to behave and how Geberit assumes responsibility as an employer in order to counteract discrimination in adherence with the ILO core labour standards. According to the annual Group-wide survey, there were two cases of sexual harassment in the workplace in 2022 and both the accused people have left the company. There was one complaint concerning discrimination that could not be upheld. See GRI 406-1 Geberit’s personnel policy and recruitment practices do not differentiate between members of the local community and other applicants or employees. See GRI 406 Protection of the principles of equality is anchored in the Geberit Code of Conduct. This includes the prohibition of discrimination against any employee on the basis of gender. Fair and equal pay for men and women is a matter of course at Geberit, as was verified and documented in 2021 as part of the annual Group-wide survey. The certified auditors PwC checked and confirmed that the analysis was carried out correctly. The proportion of female employees at the end of 2022 was 24%; in management this figure was 11%. See GRI 405, Geberit Code of Conduct for Employees Measures are defined in the “Diversity & equal opportunity” module in the sustainability strategy, leading to the development of a Group-wide directive on diversity and equal opportunity. It is planned to step up collaboration with third-party institutions and to promote inclusive workplaces. See Sustainability strategy

Environmental protection
Principle 7: Support a precautionary approach to environmental challenges		Since 1990, Geberit has followed a long-term environmental strategy, plus a sustainability strategy that was developed later. It has been committed to environmentally friendly, resource-efficient production as well as to the development of innovative, water-saving and sustainable products. This is also defined as a management principle in the Geberit Compass. Environmental criteria are considered in all decision-making processes. A demonstrably high standard is achieved in this regard, one which often exceeds statutory requirements. See Geberit Compass The core element of the new CO₂ strategy introduced in 2022 is its integration into all relevant business processes. In addition to improved transparency brought about by a comprehensive monthly CO₂ report, a focus is being placed on the measurability and direct responsibility of management and employees by means of short-term and medium-term goals. The annual achievement of objectives regarding CO₂ reduction is now relevant to bonuses with a weighting of 20% for the entire Group management (around 220 managers) as well as employees in Switzerland (a total of 1,500 employees). In order to integrate the CO₂-reducing activities into the business processes in the best possible manner, internal CO₂ pricing was introduced in 2022. Once a year, the Group Executive Board suggests a CO₂ reference price as part of the budget, which is then approved by the Board of Directors. This CO₂ price serves as a basis for deciding on investments in measures to reduce the amount of energy used or CO₂ emissions. In the reporting year, the calculation of CO₂ emissions was updated with new basic data and a switchover made to the local electricity mix (market-based). In 2022, CO₂ emissions (Scopes 1 and 2) amounted to 150,591 tonnes (previous year 183,886 tonnes), corresponding to a decrease of 18.1%. CO₂ intensity (CO₂ emissions in relation to currency-adjusted net sales) was reduced by 21.9% in the same period, thus clearly exceeding the target of 5% per year. See GRI 305-2, GRI 305-4 Since the acquisition of the energy-intensive ceramics business in 2015, Geberit has been able to reduce CO₂ intensity by 56.4%. The goal in the future is to continue to reduce CO₂ intensity by an average of 5% per year. As such, Geberit is planning to achieve a long-term reduction in absolute CO₂ emissions from 183,886 tonnes in 2021 to 121,000 tonnes by 2035. In comparison with the reference year 2015, relative CO₂ emissions are to be reduced by 70% by 2030 and by 80% by 2035, while absolute CO₂ emissions are to fall by 47% and 50% by 2030 and 2035, respectively. The targeted reduction in emissions (Scopes 1 and 2) is equivalent to a contribution to a reduction path that limits CO₂ emissions to “well below 2°C” above pre-industrial levels. See GRI 305
Principle 8: Undertake initiatives to promote greater environmental responsibility		The Geberit Group has a Group certificate in accordance with ISO 9001 (quality), ISO 14001 (environment) and ISO 45001 (occupational health and safety) that is valid until 2024. The annual preparation of a corporate eco-balance has been an established part of Geberit’s environmental strategy since 1991. The absolute environmental impact fell by 17.1% in 2022. Eco-efficiency (environmental impact per currency-adjusted net sales) improved by 20.9%, meaning that Geberit clearly exceeded its target of 5% per year. See ISO Group Certificate, Environment, Sustainability strategy Pivotal in energy management and the new CO₂ strategy are measures for saving energy, increasing efficiency and procuring energy in the plants. The corresponding measures are implemented using an energy master plan and a rolling CO₂ forecasting of the significant plants. The proportion of renewable energies is being further increased throughout the company, always taking the internal CO₂ reference price and the economic efficiency of the planned projects into consideration. See GRI 302 Beginning with the development process, the most environmentally friendly materials and functional principles are used, risks are minimised and high resource efficiency is pursued. Eco-design has been an integral part of the development processes since 2007 and has already been adopted in more than 180 development projects. Eco-design is also implemented in product modifications and technology projects. Every new product is to be better than its predecessor with respect to environmental aspects. See Products and innovation
Principle 9: Encourage the development and diffusion of environmentally friendly technologies		The water footprint throughout the Geberit value chain shows that nearly 100% of the water consumption is attributable to the use of products by customers. Water-saving solutions can therefore exert a major impact: all dual-flush and flush-stop cisterns produced since 1998 have saved around 3,840 million m³ of water in 2022 alone. See SDG Reporting Climate change may cause regional restrictions in the availability of water. Water-saving, resource-efficient products will become increasingly important. Geberit is taking advantage of the opportunity to meet the growing worldwide demand for water-saving products and to contribute towards the diligent handling of water, investing in water-saving, energy-efficient and resource-saving technologies and products. See TCFD Reporting The environmental impacts of Geberit’s products are improved continually through the consistent application of eco-design principles in product development. One current example that particularly helps to reduce the environmental impact and reduce water consumption and CO₂ emissions is the Acanto WC with TurboFlush. It offers improved flushing-out performance thanks to optimised hydraulics, with minimal water consumption. For further examples, see Products and innovation Geberit advocates the economical use of water beyond processes and products. In 2017, it was involved in establishing the Unified Water Label Association (UWLA; formerly European Bathroom Forum). One of the first tasks was the launch of a new European water label as a voluntary and flexible instrument to support customers in the selection of resource-efficient products. See Products and innovation Sustainable building is a market of the future experiencing strong growth throughout the world. As a leading system provider of sanitary solutions, Geberit is already offering suitable products for this purpose.

Anti-corruption
Principle 10: Work against corruption in all its forms, including extortion and bribery		As a long-term member of Transparency International Switzerland, Geberit is committed to high standards in combating corruption. In addition to the Code of Conduct, there are additional guidelines on prevention and employees receive training in this area. See GRI 205 In 2022, the Internal Audit Department audited a total of 23 companies and did not discover any cases of corruption. Since 2017, an Integrity Line has been available to suppliers for anonymously reporting irregularities in the procurement process. The Integrity Line is operated by an external company with experience in this area. No cases were reported in the reporting year. See GRI 2-16 As a rule, Geberit does not make donations to parties or politicians. All donations are neutral from a party political point of view. This was verified and documented as part of the annual Group-wide survey.

Human rights
Principle 1: Support and respect the protection of internationally proclaimed human rights in the company’s own area of influence		When hiring employees and determining their assignment in the company, Geberit attaches great importance to qualifications appropriate to the task description. In accordance with their qualifications, the majority of Geberit employees at the production sites and sales companies are paid well above the minimum wage range. This considerably reduces the risk of human rights violations. See Management approach employment In its Code of Conduct, Geberit undertakes to be an exemplary, reliable and fair business partner and employer at all times. As a fair partner, Geberit recognises all laws, directives and internationally recognised standards as well as the UN Guiding Principles on Business and Human Rights, and complies with them in full. All new employees at Geberit are trained on the Code of Conduct as part of the Welcome events. See Geberit Code of Conduct, GRI 2-24 Compliance with the Code of Conduct is monitored Group-wide as part of an annual survey and supplemented by internal audits on site. There were no breaches related to human rights in 2022. See GRI 2-24 The Geberit Integrity Line gives all employees the opportunity to report irregularities anonymously. Three cases were recorded by the Integrity Line for employees in 2022. All cases were followed up and are now closed, including the two cases from the previous year.
Principle 2: Make sure the company is not complicit in human rights abuses		With respect to human rights abuses, the greatest risk for Geberit lies with suppliers, who can be influenced only indirectly. Geberit does all it can to minimise this risk and requires that business partners and suppliers comply with comprehensive standards. See Sustainability strategy, Management approach procurement The Code of Conduct for Suppliers is intended to ensure that Geberit’s suppliers act in accordance with internal and external guidelines, such as the UN Guiding Principles on Business and Human Rights and the ILO core labour standards. As of the end of 2022, a total of 3,296 direct and indirect suppliers had signed the Code of Conduct. This equates to over 90% of the total procurement value. In 2022, 167 existing suppliers were identified in the highest risk category as defined by Geberit, which corresponds to around 7% of the procurement value of Geberit. A systematic planning and performance of audits is conducted for these suppliers. See Code of Conduct for Suppliers, Management approach procurement In 2022, four third-party audits were carried out at suppliers in China, Turkey and Bosnia and Herzegovina. The results showed that the majority of obligations set out in the Code of Conduct for Suppliers were complied with. Appropriate corrective measures were agreed in cases of non-compliance. See GRI 414-2

Labour practices
Principle 3: Uphold the freedom of association and the effective recognition of the right to collective bargaining		No rights with respect to exercising the freedom of association or collective bargaining as defined in the ILO core labour standards are subject to restriction at the Geberit Group. This is verified annually as part of a Group-wide survey. No restrictions were in effect in 2022. See GRI 407 There are currently 9,635 employees (corresponding to 81% of the workforce) who are covered by collective agreements (e.g. collective labour agreements, wage agreements). In Germany, Austria, Switzerland, France, Italy, Finland, Sweden, Poland and Ukraine, around 90% of employees are subject to a collective labour or wage agreement. There are no collective agreements with employees in place in the USA. The employment conditions of employees who are not covered by collective agreements are also in line with market standards. See GRI 2-30
Principle 4: Uphold the elimination of all forms of forced and compulsory labour Principle 5: Uphold the effective abolition of child labour		Geberit’s exposure with respect to forced or child labour is considered low because of its industry, business model and the countries in which business activities are carried out, its high level of vertical integration as well as its high quality requirements in the supply chain. See GRI 408, GRI 409 Geberit categorically rejects all forms of forced and child labour. According to the annual Group-wide survey, no cases of forced and compulsory or child labour were discovered in 2022, nor were any cases revealed during the course of the audits performed among the suppliers. The basic principles established in the Code of Conduct for Suppliers expressly include compliance with the ILO core labour standards for the exclusion of forced or child labour. See GRI 408, GRI 409
Principle 6: Uphold the elimination of discrimination in respect of employment and occupation		The Geberit Code of Conduct clearly specifies how employees are to behave and how Geberit assumes responsibility as an employer in order to counteract discrimination in adherence with the ILO core labour standards. According to the annual Group-wide survey, there were two cases of sexual harassment in the workplace in 2022 and both the accused people have left the company. There was one complaint concerning discrimination that could not be upheld. See GRI 406-1 Geberit’s personnel policy and recruitment practices do not differentiate between members of the local community and other applicants or employees. See GRI 406 Protection of the principles of equality is anchored in the Geberit Code of Conduct. This includes the prohibition of discrimination against any employee on the basis of gender. Fair and equal pay for men and women is a matter of course at Geberit, as was verified and documented in 2021 as part of the annual Group-wide survey. The certified auditors PwC checked and confirmed that the analysis was carried out correctly. The proportion of female employees at the end of 2022 was 24%; in management this figure was 11%. See GRI 405, Geberit Code of Conduct for Employees Measures are defined in the “Diversity & equal opportunity” module in the sustainability strategy, leading to the development of a Group-wide directive on diversity and equal opportunity. It is planned to step up collaboration with third-party institutions and to promote inclusive workplaces. See Sustainability strategy

Environmental protection
Principle 7: Support a precautionary approach to environmental challenges		Since 1990, Geberit has followed a long-term environmental strategy, plus a sustainability strategy that was developed later. It has been committed to environmentally friendly, resource-efficient production as well as to the development of innovative, water-saving and sustainable products. This is also defined as a management principle in the Geberit Compass. Environmental criteria are considered in all decision-making processes. A demonstrably high standard is achieved in this regard, one which often exceeds statutory requirements. See Geberit Compass The core element of the new CO₂ strategy introduced in 2022 is its integration into all relevant business processes. In addition to improved transparency brought about by a comprehensive monthly CO₂ report, a focus is being placed on the measurability and direct responsibility of management and employees by means of short-term and medium-term goals. The annual achievement of objectives regarding CO₂ reduction is now relevant to bonuses with a weighting of 20% for the entire Group management (around 220 managers) as well as employees in Switzerland (a total of 1,500 employees). In order to integrate the CO₂-reducing activities into the business processes in the best possible manner, internal CO₂ pricing was introduced in 2022. Once a year, the Group Executive Board suggests a CO₂ reference price as part of the budget, which is then approved by the Board of Directors. This CO₂ price serves as a basis for deciding on investments in measures to reduce the amount of energy used or CO₂ emissions. In the reporting year, the calculation of CO₂ emissions was updated with new basic data and a switchover made to the local electricity mix (market-based). In 2022, CO₂ emissions (Scopes 1 and 2) amounted to 150,591 tonnes (previous year 183,886 tonnes), corresponding to a decrease of 18.1%. CO₂ intensity (CO₂ emissions in relation to currency-adjusted net sales) was reduced by 21.9% in the same period, thus clearly exceeding the target of 5% per year. See GRI 305-2, GRI 305-4 Since the acquisition of the energy-intensive ceramics business in 2015, Geberit has been able to reduce CO₂ intensity by 56.4%. The goal in the future is to continue to reduce CO₂ intensity by an average of 5% per year. As such, Geberit is planning to achieve a long-term reduction in absolute CO₂ emissions from 183,886 tonnes in 2021 to 121,000 tonnes by 2035. In comparison with the reference year 2015, relative CO₂ emissions are to be reduced by 70% by 2030 and by 80% by 2035, while absolute CO₂ emissions are to fall by 47% and 50% by 2030 and 2035, respectively. The targeted reduction in emissions (Scopes 1 and 2) is equivalent to a contribution to a reduction path that limits CO₂ emissions to “well below 2°C” above pre-industrial levels. See GRI 305
Principle 8: Undertake initiatives to promote greater environmental responsibility		The Geberit Group has a Group certificate in accordance with ISO 9001 (quality), ISO 14001 (environment) and ISO 45001 (occupational health and safety) that is valid until 2024. The annual preparation of a corporate eco-balance has been an established part of Geberit’s environmental strategy since 1991. The absolute environmental impact fell by 17.1% in 2022. Eco-efficiency (environmental impact per currency-adjusted net sales) improved by 20.9%, meaning that Geberit clearly exceeded its target of 5% per year. See ISO Group Certificate, Environment, Sustainability strategy Pivotal in energy management and the new CO₂ strategy are measures for saving energy, increasing efficiency and procuring energy in the plants. The corresponding measures are implemented using an energy master plan and a rolling CO₂ forecasting of the significant plants. The proportion of renewable energies is being further increased throughout the company, always taking the internal CO₂ reference price and the economic efficiency of the planned projects into consideration. See GRI 302 Beginning with the development process, the most environmentally friendly materials and functional principles are used, risks are minimised and high resource efficiency is pursued. Eco-design has been an integral part of the development processes since 2007 and has already been adopted in more than 180 development projects. Eco-design is also implemented in product modifications and technology projects. Every new product is to be better than its predecessor with respect to environmental aspects. See Products and innovation
Principle 9: Encourage the development and diffusion of environmentally friendly technologies		The water footprint throughout the Geberit value chain shows that nearly 100% of the water consumption is attributable to the use of products by customers. Water-saving solutions can therefore exert a major impact: all dual-flush and flush-stop cisterns produced since 1998 have saved around 3,840 million m³ of water in 2022 alone. See SDG Reporting Climate change may cause regional restrictions in the availability of water. Water-saving, resource-efficient products will become increasingly important. Geberit is taking advantage of the opportunity to meet the growing worldwide demand for water-saving products and to contribute towards the diligent handling of water, investing in water-saving, energy-efficient and resource-saving technologies and products. See TCFD Reporting The environmental impacts of Geberit’s products are improved continually through the consistent application of eco-design principles in product development. One current example that particularly helps to reduce the environmental impact and reduce water consumption and CO₂ emissions is the Acanto WC with TurboFlush. It offers improved flushing-out performance thanks to optimised hydraulics, with minimal water consumption. For further examples, see Products and innovation Geberit advocates the economical use of water beyond processes and products. In 2017, it was involved in establishing the Unified Water Label Association (UWLA; formerly European Bathroom Forum). One of the first tasks was the launch of a new European water label as a voluntary and flexible instrument to support customers in the selection of resource-efficient products. See Products and innovation Sustainable building is a market of the future experiencing strong growth throughout the world. As a leading system provider of sanitary solutions, Geberit is already offering suitable products for this purpose.

Anti-corruption
Principle 10: Work against corruption in all its forms, including extortion and bribery		As a long-term member of Transparency International Switzerland, Geberit is committed to high standards in combating corruption. In addition to the Code of Conduct, there are additional guidelines on prevention and employees receive training in this area. See GRI 205 In 2022, the Internal Audit Department audited a total of 23 companies and did not discover any cases of corruption. Since 2017, an Integrity Line has been available to suppliers for anonymously reporting irregularities in the procurement process. The Integrity Line is operated by an external company with experience in this area. No cases were reported in the reporting year. See GRI 2-16 As a rule, Geberit does not make donations to parties or politicians. All donations are neutral from a party political point of view. This was verified and documented as part of the annual Group-wide survey.

Communication on Progress UNGC

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