CO₂ and other emissions (GRI 305)

Management approach CO₂ and other emissions

Geberit sets out its approach to climate change and, in particular, the associated risks and opportunities in reports drawn up in accordance with TCFD recommendations, see TCFD Reporting.

Geberit has been calculating its carbon footprint along the value chain (Scopes 1 to 3) since 2012. Within this context, the following activities are relevant: the purchase of (production) materials and the provision of combustibles and fuels (both Scope 3), the manufacture of products (Scopes 1 and 2), logistics, and the use and disposal of products (all Scope 3). An analysis revealed that the purchase of (production) materials (55.0%) is by far the largest source of CO₂ emissions. Manufacturing (12.0%) and the disposal of sold products (21.7%) also play a major role. Intercompany and distribution logistics (5.2%), the provision of combustibles and fuels (2.3%), business flights (<0.1%), and the use of products sold (3.8%, direct emissions resulting from electricity consumption) result in only few emissions. For further information, see Key figures sustainability > Environment.

The calculation of greenhouse gas emissions is based on the internationally recognised Ecoinvent database (version 3.8) and the IPCC (Intergovernmental Panel on Climate Change) factors from 2013. Production-related process emissions are also taken into consideration and, where possible, the effectively purchased local electricity mix (market-based). Greenhouse gas emissions were calculated according to IPCC and are shown as a sum parameter (CO₂ equivalents or simply CO₂).

Production emissions are recorded, calculated and analysed in detail as part of the corporate life cycle assessment. CO₂ emissions are particularly important to Geberit. Other Air emissions (NO_x, SO₂, hydrocarbons, etc.) are also recorded and calculated, but have a comparatively minor impact on the environment. The reduction of these emissions is directly related to the reduction targets of the CO₂ strategy.

The Geberit Group stands for an ambitious and implementation-oriented approach in its activities. This also applies to the CO₂ strategy, which was revised in 2022. This stipulates that the CO₂ intensity (Scopes 1 and 2) should fall by an average of 5% per year. As such, Geberit is looking 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) corresponds to a contribution to a reduction path that limits CO₂ emissions to “well below 2°C” above pre-industrial levels.

A central element of the CO₂ strategy is its integration 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 CO₂ strategy consists of six elements: transparency, accountability, CO₂ pricing, energy, structural reduction, and offsetting or removal.

Transparency

The annual preparation of a comprehensive corporate life cycle assessment 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. Geberit has been calculating its carbon footprint along the value chain (Scopes 1 to 3) since 2012, see Key figures sustainability > Environment.

As part of the revised CO₂ strategy, internal CO₂ reporting was further expanded: key figures on CO₂ emissions were included in the regular monthly reporting and forecasting processes. Additionally, the calculation of CO₂ emissions (Scopes 1 and 2) was audited externally 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 of the (production) materials from the supply chain.

Accountability

Since 2022, the annual achievement of targets in reducing CO₂ 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 around 1,500 employees).

CO₂ pricing

The internal CO₂ pricing is of central importance. Once a year, the Group Executive Board proposes a CO₂ reference price as part of the budget, which is then approved by the Board of Directors – this was EUR 80 per tonne of CO₂ for 2023. This figure 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. The lower the CO₂ project price, the more attractive the project, whereby the price for implementing a project has to be under the CO₂ reference price.

Energy

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 green electricity with proof of origin, long-term Power Purchase Agreements (PPA) with selected operators, or the installation of photovoltaic systems on the roofs of the production plants to generate electricity to be used within the company (GRI 302, GRI 305-5).

Structural reduction

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 cast plaster moulds or ceramic blanks. Furthermore, projects were launched to investigate the possibilities of switching to renewable energy sources – for example, biogas or green hydrogen – in the long term, as well as the systematic reuse of ceramic waste, see GRI 301.

Geberit contributes to reducing Scope 3 emissions as part of purchasing and product development. Since 2007, all new products have been optimised in terms of sustainability as part of eco-design workshops, see Eco-design. 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 when the products are used
• Reduction of the quantities of material used and prevention of hazardous substances
• 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 has a major impact on Scope 3 emissions at Geberit. Through the continuous development of products, the company can secure competitive advantages at customers with an increased awareness of sustainability and reduce potential risks resulting from future regulations.

A sustainable supply chain also contributes to reducing Scope 3 emissions. 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 Procurement.

Offsetting or removal

Geberit has the goal of significantly reducing CO₂ emissions on its own, wherever possible. There is an increasing demand for CO₂-reduced or carbon-neutral products among customers. As part of the CO₂ strategy, Geberit is testing out the approach of compensating for currently unavoidable CO₂ emissions from ceramic production with the purchase of high-quality CO₂ certificates as part of a pilot project run by the Swiss myclimate foundation. The environmental product declaration (EPD) of sanitary ceramic forms the basis for calculation here.

Direct greenhouse gas emissions (Scope 1) (GRI 305-1) and indirect, energy-related greenhouse gas emissions (Scope 2) (GRI 305-2)

In 2023, CO₂ emissions (Scopes 1 and 2) amounted to 121,014 tonnes (previous year 150,591 tonnes), corresponding to a reduction of 19.6%. This includes 3,468 tonnes of CO₂ emissions (2.9% of Scope 1 and 2 emissions) from rented or leased buildings and vehicles. At 69.8% (previous year 64.3%), combustibles are the largest source of CO₂, followed by electricity at 23.9% (previous year 30.9%) and fuels at 5.7% (previous year 4.4%), as well as process emissions and district heating at 0.6% in total (previous year 0.4%).

Key figures concerning greenhouse gas emissions can be found at Key figures sustainability > Environment.

Other indirect greenhouse gas emissions (Scope 3) (GRI 305-3)

Where other indirect greenhouse gas emissions (Scope 3) are concerned, Geberit concentrates on the following categories:

• The calculation of CO₂ emissions from purchased (production) materials was further refined and optimised in the reporting year. The resulting CO₂ emissions amounted to 555,619 tonnes (previous year 706,192 tonnes).
• CO₂ emissions from the provision of combustibles and fuels, which in 2023 accounted for 19,114 tonnes from combustibles (previous year 21,683 tonnes) and 4,539 tonnes from fuels (previous year 4,590 tonnes). CO₂ emissions of electricity generation from the upstream chain are included in GRI 305-2.
• Business flights, at 695 tonnes of CO₂ emissions (previous year 732 tonnes). These CO₂ emissions comprise direct and indirect emissions and are based on the Ecoinvent database (version 3.8) and the IPCC factors from 2013.
• Intercompany and distribution logistics (see GRI 302-2), which gave rise to a total of 52,815 tonnes of CO₂ in 2023 (previous year 65,889 tonnes). The reduction in CO₂ emissions was mainly due to the decline in volume. Since 2015, Geberit has managed to improve the eco-efficiency of its logistics operations (environmental impact per tkm) by 28%.
• Use of the products (shower toilets and washbasin taps): Consumption of electricity required to operate the products or provide hot water, and the resulting CO₂ emissions at 38,152 tonnes (previous year 44,668 tonnes).
• Disposal of products: Rough estimate of CO₂ emissions resulting from the disposal of products. CO₂ emissions amounted to 219,151 tonnes (previous year 265,750 tonnes) in the reporting year. The calculation is based on the assumption that plastic parts are incinerated at a waste incineration plant, mineral products are sent to landfill, and metals, cardboard and paper are recycled.

Intensity of greenhouse gas emissions (GRI 305-4)

CO₂ emissions (Scopes 1 and 2) in relation to currency-adjusted net sales (CO₂ intensity) decreased by 15.6% in 2023. Since the acquisition of the ceramics business in 2015, CO₂ intensity has been reduced by 63.2%, or 11.8% per year on average. This figure is clearly above the target of 5% per year.

Reduction of greenhouse gas emissions (GRI 305-5)

The measures for implementing the CO₂ strategy (Scopes 1 and 2) are based on the three pillars energy saving, heat recovery, and the replacement of fossil fuels with renewable energy sources, see also GRI 302.

In the reporting year, the purchase of green electricity with proof of origin increased by 16.5 GWh to 128.3 GWh (previous year 111.8 GWh). Overall, renewable energy sources thus accounted for 78.9% of electricity (previous year 71.3%). As a result, CO₂ emissions were reduced by around 57,500 tonnes (previous year 51,400 tonnes).

The share of renewable energies for district heating and combustibles was 5.2% in total in 2023 (previous year 4.9%). The block heating station in Pfullendorf (DE), which was commissioned in 2012 and which was fed by 6.1 GWh of regionally generated biogas in 2023, makes a key contribution. Additionally, 14.9 GWh of district heating was sourced from a paper factory and a block heating station powered by wood.

A wide range of measures for saving energy and increasing efficiency is planned at the plants. Accordingly, the area of ceramics, which accounts for around two-thirds of all Geberit’s CO₂ emissions, has the largest structural savings potential. This includes a special focus on the reduction of scrap rates. The firing process and the use of the resulting waste heat will be further optimised. This can be used for other process steps, such as drying the cast plaster moulds or ceramic blanks. Furthermore, projects were launched to investigate the possibilities of switching to renewable energy sources – for example, biogas or hydrogen – in the long term, as well as the systematic reuse of ceramic waste.

Fuel consumption is determined primarily by the company’s own and leased fleet of cars and delivery vans. Since early 2008, binding guidelines have also applied to the purchase of new vehicles and in 2019, these rules were adjusted to take into account the new Worldwide Harmonised Light Vehicles Test Procedure (WLTP).

Geberit also encourages awareness among all employees for the promotion of environmentally friendly behaviour. New employees receive training on the subject of sustainability at Geberit as part of their job orientation programme. In the largest plants, this is also tailored to the target group of production employees.

The consistent application of eco-design in product development is paramount in terms of reducing CO₂ emissions in Scope 3. Specific examples of sustainable, CO₂-reducing products can be found at Product management and innovation.

All targets and measures for improving the carbon footprint are disclosed in detail as part of the company’s participation in the Carbon Disclosure Project (CDP) and in the TCFD Reporting on climate-related risks and opportunities.

Emissions of ozone-depleting substances (GRI 305-6)

Emissions of ozone-depleting substances, measured in CFC-11 equivalents (chlorofluorocarbons), can be calculated based on the corporate life cycle assessment using the basic data from the Ecoinvent database (version 3.8). The calculation includes both direct emissions (Scope 1) from the burning of combustibles and fuels and process emissions (solvents), as well as indirect emissions (Scope 2) resulting from electricity consumption and the provision of district heating. Key figures concerning ozone-depleting substances can be found at Key figures sustainability > Environment.

Nitrogen oxides (NO_X), sulphur oxides (SO_X) and other air emissions (GRI 305-7)

Emissions of NO_x, SO₂, NMVOC (non-methane VOC) and dust (PM 10) can be calculated based on the corporate life cycle assessment using the basic data from the Ecoinvent database (version 3.8). The calculation includes both direct emissions (Scope 1) from the burning of combustibles and fuels and process emissions (solvents), as well as indirect emissions (Scope 2) resulting from electricity consumption and the provision of district heating. Key figures concerning emissions can be found at Key figures sustainability > Environment.