GRI 2-12 Role of top management and Board of Directors in monitoring the impacts of Geberit’s business activities

Geberit’s long-standing success is based on the fact that the Board of Directors and the Group Executive Board pursue a long-term perspective. The Board of Directors and Group Executive Board have defined and adopted key mission statements and principles such as the Geberit Compass and the Geberit Code of Conduct, see GRI 2-23. The Board of Directors determines the corporate strategy and sustainability strategy together with the Group Executive Board. The Group Executive Board is responsible for the implementation (including the CO₂ strategy as part of the sustainability strategy).

The impacts, risks and opportunities in terms of sustainability are discussed and reviewed by the Board of Directors and the Group Executive Board annually in connection with the sustainability reporting and the sustainability strategy. Results and the achievement of objectives are submitted to the Board of Directors and to the Group Executive Board for verification at least once annually. This also comprises the TCFD Reporting, the Communication on Progress UN Global Compact and the Geberit Compliance Report, including the audit results with respect to the Code of Conduct. Key figures on energy and CO₂ are presented monthly and key figures on occupational safety quarterly to the Group Executive Board. They are presented on a regular basis to the Board of Directors.

In 2022, Geberit consulted an external Stakeholder Panel for the sixth time. Their mandate was to give feedback on the sustainability performance, materiality analysis, new CO₂ strategy, strategic approaches on the topics of diversity and inclusion, and ESG governance. This input is used for the strategic review and continued development of the company. The next stakeholder panel is planned for 2024.

The participatory rights of shareholders are based on the Articles of Incorporation of Geberit AG. The employee representatives of the European sites meet regularly with a member of the Group Executive Board and the Head Corporate Human Resources. Selected concerns can be addressed to the Board of Directors through this channel. There is no employee representative on the Board of Directors.

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 addressed. 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.

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. These are 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. For further information on risk management by Geberit, see Business Report > Business and financial review > Strategy and goals > Risk management. For further information on climate-related risks and opportunities, see TCFD Reporting. For an overview of the Geberit compliance topics, see Business Report > Business and financial review > Financial Year 2022 > Compliance.