Annual Report 2022

Annual Report 2022


TCFD Reporting

Geberit reports on climate-related risks and opportunities according to TCFD guidelines (Task Force on Climate-related Financial Disclosures) for the first time in 2022. The report on governance, strategy, risk management, key figures and goals indicates how Geberit identifies and deals with physical risks and transitional risks and opportunities that are caused by climate change and may have a financial impact on the company.

For Geberit, sustainability means thinking and acting responsibly on a long-term basis and thus being successful over the long term as a result. This means striking a balance between economic, environmental and social aspects in all decision-making processes. Geberit stands for a high level of environmental awareness and has been committed to environmentally friendly, resource-saving production as well as the development of innovative, high-quality water-saving and energy-saving products with outstanding design. Climate change mitigation is also managed with this in mind. Geberit has the strategic goal of making an active contribution towards climate change mitigation and consistently reducing energy consumption and CO2 emissions – both inside and outside the company.

1. Governance

The responsible and future-oriented corporate governance of Geberit strengthens the resilience of the business model and thus the long-term value creation of the company. As a result, Geberit has taken its responsibility in the field of sustainability seriously for many years and continually improves the holistic management approach towards the most important topics. The Board of Directors has the highest level of direct responsibility for climate-related risks and opportunities. Climate-related topics affect all business areas at Geberit and thus have to be overseen and controlled at the highest level within the organisation.

The Board of Directors determines together with the Group Executive Board the corporate strategy. The sustainability strategy supplements the corporate strategy with twelve concrete modules. Important modules with a connection to climate change mitigation include energy and CO2 reduction in production and logistics, the development of innovative, sustainable and resource-saving products, the consistent implementation of eco-design principles, and a sustainable supply chain. Intelligent water management both in terms of production and products also plays an important role here. The new CO2 strategy – which includes an internal CO2 price and bonus-related component for Group management and employees in Switzerland – was developed by the Group Executive Board in 2021 and was then checked and approved by the Board of Directors. It has been in force since the start of 2022. The Group Executive Board is responsible for implementing the sustainability strategy (including the CO2 strategy as part of the sustainability strategy). Results and the achievement of objectives are submitted to the Board of Directors for verification at least once annually.

The way in which the topic of sustainability is approached has been further developed within the company on a regular basis. The topic has been addressed actively for over 30 years and has had a dedicated function at the company since 1992, starting with a focus on environmental topics and then constantly growing to include added topics and responsibilities. The central environment and sustainability department has reported directly to the CEO for over 20 years. Since 2020, this department has also been responsible for Group-wide process management and ISO certification and was renamed Sustainability and Process Management. Among other aspects, it coordinates the further development of the sustainability strategy and CO2 strategy, plus the associated activities. It also develops approaches for identifying, assessing, monitoring and reporting climate-related risks and opportunities. Various relevant environmental data, such as energy and water consumption, is recorded on a monthly basis in a central tool. This allows climate-related key figures to be monitored monthly and distributed to the Group Executive Board and the responsible managers – particularly plant managers – as part of energy and CO2 reporting. In-depth findings from the monitoring of climate-related topics are summarised annually in a Corporate Environmental Report. Sustainability and Process Management is also responsible for the annual sustainability report according to GRI Standards, including the sustainability strategy, key figures sustainability, as well as various additional reporting standards such as SASB, SDG and UNGC. It is also responsible for reporting in line with the Carbon Disclosure Project (CDP).

Either the individual business units or – centrally – Sustainability and Process Management are responsible for planning and implementing the measures detailed in the twelve modules included in the sustainability strategy. In terms of direct responsibility, the production plants are responsible for the green production module, Group logistics for the green logistics module, and Group purchasing for the sustainable supply chains module. A network of EHS managers at the production plants coordinate environment, health and safety topics and implement the goals and measures from the sustainability strategy locally together with plant management. Additionally, a global meeting takes place once a year, where managers discuss best practice and further develop Group-wide standards and processes.

Governance-Structure (graphic)
* EHS: Environment, Health and Safety

The Corporate Governance report included in the Annual Report 2022 contains further information on the governance structure.

2. Strategy

According to TCFD guidelines, a distinction is made between physical risks and transitional risks and opportunities. Material risks and their financial significance are regularly reviewed and assessed by Geberit as part of risk management.

Physical risks include short-term acute, extreme weather events and longer-term chronic, localised effects such as increasing average temperatures, rising sea levels or increasing periods of drought. These short-term and longer-term effects may result in damage to property and infrastructure, adversely affect logistics operations or cause disruptions in the supply chain. Rising average temperatures and an increase in the number of hot days lead to increased energy demand for the cooling of machines, processes and workplaces during the summer months, as well as to a possible reduction in energy demand for heating buildings in the winter. Rising sea levels may mean that production sites located on the sea have to be protected against flooding.

All in all, the physical risks affecting Operations in particular (Purchasing, Production and Logistics) are classified as being of low to moderate risk.

Transitional risks and opportunities arise from new legal, technological, societal and economic trends and framework conditions triggered by climate change.

  • Changes in environmental protection laws and tighter regulations may lead to stricter requirements concerning energy efficiency and the use of renewable energy sources, as well as an increase in CO2 taxes on fuels and combustibles, leading to increased energy costs. In terms of water, lower availability and poorer quality may also result in stricter requirements. This would lead to increased demand for water-saving sanitary systems – particularly toilets – and Geberit could gain market shares.
  • The trend towards resource efficiency and a circular economy is leading to increasing demands in terms of the quality, durability, repairability and recycling of products and building materials. These developments could have an impact on the product portfolio and production plants. Furthermore, customers, investors and employees also have increasing expectations in terms of sustainable, low-carbon products and services. With its high-quality, durable products, Geberit is well positioned and has the opportunity of gaining further market shares.
  • The biggest opportunity for Geberit can be found in the limited local availability of water in many places as the result of climate change. In the risk analyses conducted periodically by the World Economic Forum (WEF) and published in its Global Risk Report 2023, water scarcity (a central topic in the context of crises in natural resources) was classified as one of the ten highest global risks in terms of impact over the next ten years. This trend has an influence on the development of sanitary technology. 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, thus making a name for itself as a leader in sustainability. Water-saving products already make a substantial contribution to Group sales.

All in all, the trends and changes addressed above primarily result in opportunities for Geberit to gain market shares as a sustainability leader and market leader in sustainable sanitary products.

Integration in business processes

In order to minimise risks and utilise opportunities on the market, Geberit’s overall strategic approach is of key importance: Geberit integrates the sustainability approach step by step in its business processes and core business – and has been doing so for over 30 years. Sanitary technology behind the wall combines reliability and quality with innovation. This allows for easy, quick and reliable planning and installation. Meanwhile, bathroom systems in front of the wall offer convincing design, functionality and sustainability, for example, in terms of saving water. By applying the eco-design principle, each product is inspected and optimised throughout the entire life cycle. By developing and selling water-saving sanitary solutions, Geberit makes a valuable contribution to saving increasingly scarce drinking water resources. A second major contribution can be found in climate change mitigation – saving water also means saving energy, and thus indirectly also a reduction in CO2 emissions.

With the consistent implementation of its sustainability strategy and CO2 strategy, Geberit is working on minimising risks caused by climate change and taking advantage of the associated opportunities.

New CO2 strategy

The Geberit Group stands for an ambitious and implementation-oriented approach in its activities. This also applies to the new CO2 strategy. The central element is the integration of the CO2 strategy in all relevant and existing business processes as well as the handling of CO2 emissions as external costs by means of internal CO2 pricing. In this way, Geberit wants to ensure that the procedure of reducing the company’s carbon footprint is widely supported within the company, incorporated in daily business activities, and that the measures taken have a long-term, sustainable effect.


The annual preparation of a comprehensive corporate eco-balance is an established part of environmental management. It covers all production plants worldwide, central logistics in Pfullendorf (DE), other smaller logistics units and the larger sales companies. Since 2012, a carbon footprint has been calculated along the value chain (Scopes 1 to 3), see CO2 and other emissions.

As part of the new CO2 strategy, internal reporting has been further expanded: Key figures on CO2 emissions are included in the regular monthly reporting and forecasting processes. Additionally, the calculation of the carbon footprint (Scopes 1 and 2) was also audited externally for the first time as part of a limited assurance engagement, see Audit report greenhouse gas balance.

In addition to focusing on Scope 1 and 2 emissions, work also continued on the transparency of Scope 3 emissions. This took place on a product level as part of environmental product declarations (EPDs) and also for Scope 3 emissions from the supply chain.


Since 2022, the annual achievement of targets in reducing CO2 intensity has been integrated as one of five equally weighted criteria in the calculation of the Group bonus. The annual reduction goals are thus bonus-related with a weighting of 20% for the entire Group management (around 220 managers) as well as for the employees in Switzerland (a total of 1,500 employees).

CO2 pricing

The internal CO2 pricing is of central importance. 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 was EUR 60 per tonne of CO2 for 2022. This is based on the price of the European Emissions Trading System (ETS) for CO2. The internal CO2 reference price embodies the reference costs for saving one tonne of CO2. An implicit CO2 project price is calculated for each project using an economic efficiency calculation. This serves as a basis for deciding on investments in measures to reduce energy or CO2.


Pivotal in the CO2 strategy are measures for saving energy, increasing efficiency, heat recovery and procuring energy in the plants. The corresponding measures are drawn up and implemented as part of 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. There are various ways of doing this: purchasing high-quality green electricity, long-term Power Purchase Agreements (PPA) with selected operators, or the installation of proprietary photovoltaic systems on the roofs of the production plants to generate electricity to be used within the company, see Energy.

Structural reduction

Accordingly, the area of ceramics, which accounts for around two-thirds of all Geberit’s CO2 emissions (Scopes 1 and 2), has the largest savings potential. This includes a special focus on the reduction of scrap rates and refiring rates. The firing process and the use of the resulting waste heat will be continually optimised. This can be used for other process steps, such as drying the plaster moulds or ceramic blanks. Furthermore, projects were launched to investigate the possibilities of switching to renewable energy sources – for example, green hydrogen – in the long term as well as the systematic reuse of ceramic waste, see Resources and circular economy.

Geberit also contributes to reducing Scope 3 emissions as part of purchasing and product development. Furthermore, since 2007 all new products have been optimised in terms of sustainability as part of eco-design workshops. Seen across the entire life cycle, each product should be better than its predecessor from an ecological perspective – and all without sacrificing on quality, functionality or durability. With regard to the individual areas in the upstream and downstream value chain, the planned measures are aiming for the following improvements:

  • Ensuring high quality, durability and repairability
  • Reduction of water and energy consumption in the product use phase
  • Reduction of the quantities of material used
  • Increasing the share of recycled and sustainable, CO2-reduced materials
  • Simplification of dismantling and recycling products and their components
  • Reduction of packaging material
  • Optimisation of transport routes and maximising shipping container utilisation

The sustainable design of products makes a significant contribution to Scope 3 emissions at Geberit. Through the continuous development of products, Geberit can secure competitive advantages at customers with an increased awareness of sustainability, gain technological competitive advantages and reduce potential risks resulting from future environmental regulations.

A sustainable supply chain also contributes to reducing risks. In principle, Geberit’s production processes entail a high in-house production depth, i.e. it largely purchases raw materials and semi-finished products with a high share of raw materials. Geberit’s suppliers are obligated to maintain comprehensive environmental and social standards. Supplier management incorporates a risk management approach on environmental, occupational safety and human rights matters, among other aspects. The selection of suitable raw materials with minimal CO2 emissions plays an increasingly important role, and is addressed in discussions with suppliers and included in decision-making processes, see Purchasing. Climate risks at suppliers can lead to difficulties in raw material procurement for Geberit and thus affect operational workflows in production at the company. Risk management towards a sustainable procurement strategy for raw materials with a strong regional and local orientation helps to better manage and reduce climate risks in the supply chain.

Offsetting or removal

Geberit has the goal of significantly reducing CO2 emissions on its own, wherever possible. There is an increasing demand for low-carbon or carbon-neutral products among customers. As part of the new CO2 strategy, Geberit is testing out the approach of calculating currently unavoidable CO2 emissions based on the environmental product declaration (EPD) for ceramic appliances and compensating for these by investing in a selected, high-quality climate change mitigation project. In 2023, a pilot project was started with the myclimate foundation from Switzerland in order to gather initial experiences.

3. Risk management

The Geberit Group has a risk management system that is approved by the Board of Directors. The risk policy defines a structured process according to which the business risks, including sustainability and climate risks, are systematically assessed and managed. In this process, the risks are identified, analysed and assessed in terms of their probability of occurrence and extent, and measures are then defined to control the risks. Operationally, the Group Executive Board is responsible for controlling risk management. In addition, responsible persons are designated in the company for significant individual risks; in the case of sustainability and climate risks, this is the Head Corporate Sustainability and Process Management. These responsible parties decide on specific actions for risk mitigation and monitor their implementation. The Internal Audit Department coordinates the risk management process and issues a risk report for the attention of the Board of Directors every other year. Significant risks are also constantly discussed in the meetings of the Group Executive Board and Board of Directors, which take place on a regular basis.

Integration of climate risks in general risk management at the organisation

The risk management process involves the following steps:

  1. Risk identification and classification: Correct identification and assessment of the significant risks. These are discussed in depth every other year by the Group Executive Board and the Board of Directors.
  2. Risk analysis: Assessment of specific business risks and analysis of the changes since the last survey. The former is assessed with the Probability of Occurrence, on a scale of improbable (1) to frequent (5). To scale the effects of a risk that has been identified, the scale of the Impact of Risk Event is used. The scale ranges from insignificant (1) to very critical (5). The risks are classified on the basis of the combined scores.
  3. Risk management: Instruments, measures and responsibilities are defined for each risk and checked at regular intervals.
  4. Risk monitoring and reporting: Risk monitoring is part of regular reporting to the Group Executive Board and the Board of Directors, and is also part of the risk assessment that takes place every two years.

Risks associated with climate change are an integral part of the overall risks of the company and are therefore also taken into account in risk assessment.

Assessment of risks and opportunities arising from climate change

The following table shows the most important climate-related risks and opportunities that Geberit has identified to date and assessed as having a possible impact on the company.

Physical risks



Impact on Geberit (risks and opportunities)




Extreme weather events, such as storms, flooding or landslides


Extreme weather events can affect Geberit’s in-house production or supply chain. Due to (i) the continuous high investments in building infrastructures and (ii) the procurement strategy focusing on regional/local suppliers and plants close to the sales markets, the risks to the supply chain in particular are minimised.


Minimising risks

  • Regular assessment of acute physical risks as part of business continuity management (BCM)
  • Supply chains are kept short, with alternative suppliers established wherever possible
  • Continuation of the production strategy and increased flexibility in the ceramics plants for relocating products to other plants



Longer-term, localised effects of climate change, such as increasing average temperatures, rising sea levels or increasing periods of drought


Rising average temperatures lead to increased energy demand for the cooling of machines, processes and workplaces during the summer months, which can lead to increased costs.
Rising sea levels would affect the two production sites located on the sea at Gaeta (IT) and Ekenäs (FI), which are responsible for around 2.5% of Group sales. The remaining 24 plants that make up 97.5% of Group sales are not affected.
Increasing periods of drought can have a negative impact on the availability and quality of drinking water or process water, leading to increased costs in ceramic production in particular.

Rising average temperatures lead to a reduction in energy demand for heating buildings in the winter, which can reduce heating costs.


Minimising risks and taking opportunities

  • Regular assessment of chronic physical risks as part of the risk management system
  • Ongoing investment in resource-efficient, energy-saving and water-saving production
  • Investments in infrastructure, such as the construction of a defensive wall or the implementation of emergency concepts for protecting the affected production plants
  • Relocation of products from the two at-risk ceramics plants to the other eight unaffected plants
Transitional risks and opportunities



Impact on Geberit (risks and opportunities)



Regulatory and statutory

Increased demands for energy efficiency and the use of renewable energy sources, plus increased CO2 taxes on fossil combustibles and fuels


Increased CO2 taxes on fossil combustibles and fuels lead to increased operating costs, primarily in the European ceramics plants. However, these could be passed on thanks to the high price-setting power, or could also be absorbed if necessary due to very high, industry-leading profitability. The higher operating costs do not have a significant risk for Geberit.

Due to Geberit’s industry-leading profitability, competitors would be affected more by higher costs, which could result in Geberit gaining market shares.


Minimising risks

  • Further implementation of the comprehensive CO2 strategy: (i) implementation of measures for saving energy, heat recovery and increasing efficiency in the plants, (ii) increasing the share of green electricity and replacing heating systems using fossil fuels and energy-intensive technologies, (iii) applying internal CO2 price for efficient decision making

Increasing requirements for saving water


Increasing requirements for saving water lead to an increased demand for water-saving solutions in sanitary applications. Geberit has a broad product portfolio of water-saving WC systems and helps to systematically and holistically optimise the handling of water in buildings while ensuring the highest levels of hygiene, including in drinking water applications.


Taking opportunities

  • Further expansion of the portfolio of water-saving sanitary products, particularly WC systems
  • Increased marketing measures for promoting water-saving solutions, particularly toilet flushes

Tighter regulations in terms of the circular economy, particularly through the European Green Deal


High product quality and durability mean that Geberit can gain market shares in the event of tighter regulations and/or increased awareness relating to the circular economy.
The European Green Deal leads to increased activity in renovations and new buildings in the European construction sector, meaning Geberit benefits as the leading provider of sanitary products.


Taking opportunities

  • Consistent development of products according to the eco-design principle
  • Identification of ways in which to close internal material cycles and make production waste useful as secondary materials
  • Increasing the share of recycled materials (e.g. ABS regranulate) in production and searching for further high-quality plastic regranulates



New technologies such as energy-efficient machines and low-carbon or carbon-neutral production processes using green hydrogen


Increased costs for procuring new machines, the use of alternative fuels (e.g. green hydrogen) and the changeover of production processes for achieving carbon neutrality.

Due to its proven high willingness to invest and industry-leading financial strength, Geberit benefits from technology risks compared to the competition.


Minimising risks and taking opportunities

  • Regular assessment of technology risks as part of the risk management system
  • Implementation of new CO2 strategy, particularly structural reduction and the internal CO2 price for efficient decision making on more cost-effective solutions
  • Ongoing renewal of machine fleet and infrastructure, plus continued investments in the latest technology



Changes to customer needs and preferences


Competitors catch up in the area of sustainability and sustainable products, Geberit recognises new customer expectations or new trends too late and cannot meet them.

Geberit already has a wide range of sustainable and water-saving products and can use its innovative strength to further expand the product portfolio in this direction.
Gaining of market shares and higher income due to exploitation and increase of product share for low-emission products.


Minimising risks and taking opportunities

  • Regular assessment of market risks as part of the risk management system
  • High level of innovation maintained for sanitary products and system solutions
  • Major investments in water-saving, energy-efficient and resource-saving technologies and products, as well as in product quality; annual investments of around CHF 72 million in R&D
  • Industry-leading know-how in the fields of hydraulics, water conservation, drinking water quality and sound insulation
  • Establishment and development of skills in the field of green building
  • Consistent development of products according to the eco-design principle
  • Voluntary purchase of high-quality CO2 certificates for selected ceramic appliance series
  • Transparent communication of environmental impacts of our products as part of EPDs







Changing expectations of employees, customers and society


Competitors catch up in the area of sustainability and position themselves as sustainability leaders with ambitious claims.

Geberit reinforces its position as a leader and role model in sustainability in the sanitary industry and in the marketing of innovative, water-saving and sustainable sanitary solutions. Geberit supports the transformation in the construction industry towards more sustainable solutions and green building in cities and communities. There is a particular focus on saving water.


Minimising risks and taking opportunities

  • Regular assessment of reputation risks as part of the risk management system
  • Regular employee and customer surveys carried out
  • Regular review of sustainability strategy and communication as part of the external stakeholder panel
  • Increased external communication of the sustainability efforts that have been firmly established at Geberit for decades and the corresponding sustainability performance report

In terms of climate change, the risks for Geberit are outweighed by the opportunities. The risks are classified as being of low to moderate risk. Stricter environmental rules and regulations – particularly in terms of energy, water consumption and water quality – and greater environmental awareness among customers in general are creating additional demand for durable products that conserve water, energy and resources. Geberit already offers a wide range of suitable products here.

Risks and opportunities arising from climate change were also discussed with the external stakeholder panel in 2020 and 2022. As detailed in the Panel Statement 2020, the panel members assume that the political and regulatory framework conditions on climate change mitigation will change and become stricter. The demand for water-saving products as a result of climate change is assessed as “moderate” by the panel. However, it is expected that the demand for products that improve drinking water quality and hygiene will increase. Similarly, there will also be an increasing demand on the market for products that can be repaired and reused, or can be recycled. As detailed in the Panel Statement 2022, the panel all agreed that the development of innovative, durable sanitary products with exceptional quality and design is pivotal for Geberit, as is resource efficiency in production and during the product use phase. As a result, the focus on the innovation and sustainability of sanitary products in the strategy is particularly important in minimising climate-related risks for Geberit in future and utilising the opportunities to their full potential.

4. Key figures and goals

For many years, Geberit has disclosed comprehensive key figures and goals on sustainability and CO2 as part of its sustainability reporting: