Annual Report 2023

Annual Report 2023

de

Sustainability strategy

For Geberit, sustainability means being oriented towards the future as well as operating and being successful over the long term. To do this, a balance has to be struck 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 durable products; training and education of plumbers, sanitary engineers and architects; the smallest possible environmental footprint along the entire value chain; production sites 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.

Sustained improvement in quality of life

For more information on the “go-to-market” model (business model) at Geberit and how Geberit implements integrated sustainability along the entire value chain and thus creates value, see Business model and value chain. 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.

People, Planet and Profit in harmony

The long-term corporate strategy is based on four pillars: Focus on sanitary products, Commitment to innovation and sustainability, Selective geographic expansion and Continuous optimisation of business processes. This strategy is implemented on the basis of seven growth and earnings drivers. The sustainability strategy supplements the corporate strategy and the growth and earnings drivers with twelve modules. These modules strengthen the “go-to-market” model (business model) and generate added value for various stakeholders in the areas People (employees and society), Planet (environment) and Profit (value chain including compliance and governance) in a targeted manner. The results of these activities show the diverse added value in the three dimensions of sustainability.

Contribution to sustainable development

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 4 (“Quality Education”), Goal 6 (“Clean Water and Sanitation”), Goal 11 (“Sustainable Cities and Communities”) and Goal 13 (“Climate Action”) are a key focus for Geberit. Compared with the previous year, Goal 8 (“Decent Work and Economic Growth”) and Goal 9 (“Industry, Innovation and Infrastructure”) have been replaced in order to define in even more concrete terms the areas where Geberit achieves added value for society.

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
10,947
employees
Info
274
apprentices
Info
14.5 hours
training and education per employee
Info
CHF 9.2 million
on workshops for disabled persons
Info
394 GWh
combustibles consumption (-13.1%)
Info
199 GWh
electricity consumption (-9.1%), 128 GWh green electricity, 78.9% renewable energy
Info
850,178 m3
water consumption (-6.4%)
Info
CHF 197 million
Investments in property, plant and equipment and intangible assets
Info
CHF 70 million
R&D expenditures
Info
37.1%
Equity ratio
Info
25
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 sustainability
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” “Go-to-market” model
  • Technology penetration
  • Value strategy
  • Innovation leadership
  • Sustainability leadership
  • Selective technology penetration
  • Continuous process and cost optimisation

Medium-term goals

Read more
Results
People
Planet
Profit
89%
managerial positions filled with internal candidates
Info
65%
transfer rate of apprentices
Info
AFR 7.3
accidents per million working hours performed
Info
100%
production plants ISO 45001 certified
Info
62.6%
Improvement of eco-efficiency since 2015
Info
121,014 t
CO2 emissions (-19.6%)
Info
100%
production plants ISO 14001 certified
Info
2,940
million m3
water saved due to Geberit products
Info
-4.8%
Currency-adjusted net sales decline
Info
29.9%
Operating cashflow margin
Info
CHF 625 million
Free Cashflow
Info
CHF 18.39
Earnings per share
Info
Creating value for

Employees

Society

Environment

Customers

Shareholders

Materiality analysis
Sustainability strategy

The following pages contain an overview of the sustainability modules with important facts and achievements from 2023, plus an outlook for the years 2024 to 2026. This sustainability strategy covers the entire Geberit Group and indicates how Geberit wants to be a leader in the sanitary industry when it comes to sustainability.

People

Employee attraction & retention

Icon People (icon)

Geberit is an attractive employer and strives to offer jobs of the highest quality.

Important facts and achievements 2023

  • Completion of the implementation of a new performance management process (“valYOU”) for performance assessment, defining objectives and succession planning at all sites worldwide.
  • Development programmes (GROW and LEAD) for young professionals 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 network.
  • Development programme for over 100 regional sales managers from European sales companies based on standardised management principles and instruments.
  • Selective roll-out of active sourcing activities for recruiting new employees (in selected countries for selected functions).
  • Regular exchange of best practices in the area of employee attraction and retention.
  • Employment of 274 apprentices with a transfer rate to a permanent employment relationship of 65%.

Outlook for 2024 to 2026

  • Revision and roll-out of the Geberit Compass and Geberit Code of Conduct for Employees in 2024.
  • Introduction of the Operations Development Programme (ODP) for internal and external managerial staff in Sales and Marketing.
  • Continuation of the development programme for managerial staff at the sales companies.
  • Group-wide employee survey in 2025.
  • Short surveys on specific topics in individual areas and companies.
  • Redesign of employer branding for selected target groups.
  • Targeted support for transfer of apprentices to a permanent position. Target rate is 75%.

Important facts and achievements 2023

  • Completion of the implementation of a new performance management process (“valYOU”) for performance assessment, defining objectives and succession planning at all sites worldwide.
  • Development programmes (GROW and LEAD) for young professionals 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 network.
  • Development programme for over 100 regional sales managers from European sales companies based on standardised management principles and instruments.
  • Selective roll-out of active sourcing activities for recruiting new employees (in selected countries for selected functions).
  • Regular exchange of best practices in the area of employee attraction and retention.
  • Employment of 274 apprentices with a transfer rate to a permanent employment relationship of 65%.

Outlook for 2024 to 2026

  • Revision and roll-out of the Geberit Compass and Geberit Code of Conduct for Employees in 2024.
  • Introduction of the Operations Development Programme (ODP) for internal and external managerial staff in Sales and Marketing.
  • Continuation of the development programme for managerial staff at the sales companies.
  • Group-wide employee survey in 2025.
  • Short surveys on specific topics in individual areas and companies.
  • Redesign of employer branding for selected target groups.
  • Targeted support for transfer of apprentices to a permanent position. Target rate is 75%.

Diversity & equal opportunity

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Geberit is committed to equal opportunities for all employees. The company promotes mixed teams, offers working conditions for good reconciliation of family and working life, and is committed to inclusive workplaces.

Important facts and achievements 2023

  • Approval of strategy for promoting inclusive workplaces and derivation of suitable measures.
  • Development of a Group-wide directive on diversity and equal opportunity.
  • Workshops for disabled persons were commissioned with assembly and packaging work totalling CHF 9.2 million.

Outlook for 2024 to 2026

  • Medium-term goal of 5% share of inclusive workplaces (internal and external).
  • More intensive collaboration with third-party institutions.
  • Communication of the directive on diversity and equal opportunity and derivation of suitable measures.
  • Annual reporting on diversity and inclusive workplaces as part of personnel reporting.

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 2023

  • Initial certification of the plant in Stryków (PL) according to ISO 45001. Global certification of all production plants and central logistics in accordance with ISO 45001 (occupational health and safety).
  • Implementation of the new Group-wide safety standards for the targeted increase of the level of safety in the production plants and in logistics.
  • Exchange of best practices and accident analyses encouraged, plus implementation of cross-site audits based on the new safety standards.
  • Roll-out of the eLearning programme on occupational safety at a further four production plants.
  • Decrease in the accident frequency rate (AFR) by 11% to 7.3 (accidents per million working hours) and in the accident severity rate (ASR) by 24% to 119.7 (days lost per million working hours). The absenteeism rate due to accidents and illness improved to 5.2%.
  • 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 “Geberit Vital” healthcare programme is offered at six locations and is available to around 40% of the entire workforce.
  • Continuation of the action plan for reducing quartz dust, including measurements and monitoring of targets in the ceramics plants.

Outlook for 2024 to 2026

  • Halving of the accident frequency rate and accident severity rate between 2015 and 2025; AFR target: 5.5; ASR target: 90.
  • Further development of the existing safety standards.
  • Conduction of further cross-site audits and integration in the internal audit tool.
  • Roll-out of the eLearning programme on occupational safety at further production plants.
  • Revision of the methods used for accident analysis and safety inspections.
  • Further improvement in ergonomics, particularly in the ceramics plants and in logistics.
  • Continuation of the action plan for reducing quartz dust.

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 2023

  • Geberit employees contributed 2,790 hours of charitable work as part of social projects.
  • Implementation of a social project in India with eleven Geberit apprentices. Construction of a new sanitary wing and renovation of the water supply at a primary school.
  • Support of the “Youth Water Challenge” for students focusing on water and hygiene, carried out by the Swiss Water Partnership network.
  • Continuation of the training programme for plumbers in Ukraine with the local sales company in collaboration with the Swiss Agency for Development and Cooperation (SDC).
  • Approval of the strategy for social commitment at Geberit. Development of a training programme for plumbers in Kenya in collaboration with the Hilti Foundation.

Outlook for 2024 to 2026

  • Implementation of a social project in Cambodia with apprentices.
  • Start of the training programme for plumbers in Kenya in collaboration with the Hilti Foundation.
  • Review of the effectiveness of social projects with apprentices 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 2023

  • The absolute environmental impact decreased by 17.6%, while the environmental impact in relation to currency-adjusted net sales (eco-efficiency) was reduced by 13.4%. 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). Group certificate valid until 2024.
  • The quantity of hazardous substances used in the production plants was reduced by 11%. This figure is clearly above the target of 5% per year.
  • Internal recycling of around 7,200 tonnes of plastic waste from production, with high-quality post-consumer regranulate used: 792 tonnes ABS, 49 tonnes LDPE and 2 tonnes PP.
  • Active participation in Operation Clean Sweep to prevent the pollution of the environment with plastic pellets.
  • Resource efficiency in ceramic production reduced by 2.2% to 0.42 kg waste/kg ceramic.

Outlook for 2024 to 2026

  • Improvement of eco-efficiency by 5% per year.
  • Reduction of hazardous substances in production plants by 5% per year.
  • Renewal of the ISO Group certificate with validity until 2027.
  • Search for further high-quality plastic regranulates and subsequent implementation.
  • Identification of ways in which to close internal material cycles and make production waste useful as secondary materials.
  • Reduction of scrap rate and improvement of resource efficiency in ceramic production by 10% from 2021 to 2024 to 0.4 kg waste/kg ceramic.

Energy & CO2

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Geberit actively contributes to climate change mitigation and consequently reduces its energy consumption and COemissions along the value chain.

Important facts and achievements 2023

  • Comprehensive COstrategy with internal COreference price, bonus-related component and external validation of COemissions.
  • Decrease of absolute COemissions (Scopes 1 and 2) by 19.6% to 121,014 tonnes, and reduction of COemissions in relation to currency-adjusted net sales (COintensity) by 15.6%.
  • Improvement in COintensity of 63.2% since the acquisition of the ceramics business, or 11.8% per year on average.
  • The volume of purchased green electricity increased by 16.5 GWh to 128.3 GWh. Renewable energy sources accounted for 78.9% of electricity and 5.2% of combustibles.
  • 3.0 GWh of green electricity was produced in Givisiez (CH) and Pfullendorf (DE).
  • Five German production plants received ISO 50001 certification (energy).
  • New function in the area of energy focusing on ceramics plants. Detailed review, establishment of a network, exchange of best practices and further development of the energy master plan.
  • Replacement of three old, inefficient kilns with a new, modern tunnel kiln in Carregado (PT).
  • Refinement of the calculation of COemissions for processed materials (Scope 3).

Outlook for 2024 to 2026

  • Same medium-term improvement in COintensity (Scopes 1 and 2) as for eco-efficiency by 5% per year on average.
  • Reduction of relative COemissions (Scopes 1 and 2) by 80% between 2015 and 2035, corresponding to 121,000 tonnes of CO2.
  • Further refinement of the calculation of COemissions for processed materials (Scope 3).
  • Evaluation of technologies and alternative fuels for achieving carbon-neutral ceramic production.
  • Commissioning of the new, modern tunnel kiln in Carregado (PT).
  • Certification of further production plants in Poland according to ISO 50001 (energy).

Water

Icon Planet (icon)

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

Important facts and achievements 2023

  • Almost 100% of the water consumed by Geberit can be attributed to the product usage phase.
  • Since 1998, some 34,940 million m3 of water have been saved to date through the use of water-saving flushing systems (according to a model calculation, compared to 9-litre full flush volume). In 2023 alone, the water saved amounted to 2,940 million m3.
  • Water consumption in relation to the amount of ceramic produced increased by 11.7% to 7.1 l/kg ceramic.

Outlook for 2024 to 2026

  • Registration of additional water-saving products in accordance with the European water label.
  • Reduction of water consumption in relation to the amount of ceramic produced by 5% to 5.6 l/kg ceramic by 2024 compared to 2021.

Eco-design & sustainable products

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In the development process, Geberit products are optimised with regard to their environmental friendliness, resource consumption, CO2 emissions and recyclability. Geberit is the leading partner for sustainable sanitary solutions in green building.

Important facts and achievements 2023

  • Over 185 eco-design workshops have been held in product development since 2007.
  • Various new products with a reduced ecological footprint:
    • Acanto WC with TurboFlush – allows for improved flushing-out performance thanks to optimised hydraulics, with minimal water consumption.
    • Dual-flush units type 208 and type 212 for cisterns – backwards-compatible, flexible setting and allows for good flushing out of the WC pan with minimal water consumption.
    • CleanLine50 shower channel – slim design, integrated slope, and 50% less material used.
  • Guaranteed spare parts availability of 50 years for concealed cisterns, and lifetime guarantee for ceramic products.
  • 97% of bathroom furniture of the Geberit brand and 75% of the remaining bathroom furniture is FSC™ certified (FSC‑C134279).
  • Creation of a new environmental product declaration according to EN 15804 +A2 for the actuator plate Sigma 01/10/20/30. Products with an EPD now account for around 34% of Group sales.
  • Purchase of high-quality COcertificates for ceramic appliances in selected series as part of a forest conservation project run by the Swiss myclimate foundation in Tanzania.
  • Interdisciplinary project for developing expertise in the field of green building.

Outlook for 2024 to 2026

  • Eco-design workshops to be carried out in product development and basic projects.
  • Exchanges with recycling companies and integration of “Design for Recycling” principles in product development.
  • Further expansion of the portfolio of sustainable products: fill valve type 383 (backwards-compatible, efficient and quiet), use of ABS regranulate and Silent‑Pro SuperTube (saves space and resources).
  • 100% of bathroom furniture of the Geberit brand and over 80% of the remaining bathroom furniture is FSC™ certified (FSC‑C134279).
  • Update of existing environmental product declarations in accordance with EN 15804 +A2 and creation of further new EPDs.
  • More systematic recording of environmentally relevant product data, i.e. for BIM.
  • Further training and development of expertise in the field of green building at the sales companies.

Profit

Sustainable supply chain

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Suppliers demonstrably comply with Geberit’s high standards for environmentally friendly and socially responsible production, and support Geberit in reducing COemissions (Scope 3).

Important facts and achievements 2023

  • The Code of Conduct was signed by 3,745 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 168 suppliers (some 6% of the procurement value).
  • Update of the supplier sustainability risk matrix, which contains human rights and other aspects. Five external EHS audits were carried out at suppliers in China, India, Slovenia and Turkey.
  • Regular training on procurement and sustainability at the sales organisation. Exchanges on sustainability at two Supplier Days with the top 100 suppliers, who constituted around 75% of COemissions.
  • Derivation and implementation of measures resulting from new legal requirements, including clarifications on conflict minerals.
  • New function for sustainability and compliance in the area of Corporate Purchasing. Detailed analyses on alternatives in the area of plastics and metal, plus clarifications on the availability of data on COemissions. Exchange of best practices with other large companies.
  • With 76 out of 100 points (same as previous year) EcoVadis gold rating.

Outlook for 2024 to 2026

  • All new suppliers have to sign the Code of Conduct, with the introduction of a customised process for large companies with a global structure.
  • Expansion of the supplier sustainability risk matrix (including human rights) with the addition of indirect spend (including calculation of COemissions).
  • Further EHS audits of suppliers are to be carried out by Geberit and external partners, with the corrective measures being checked.
  • Integration of EHS audits in the internal audit tool.
  • Development of a concept for more intensive collaboration with suppliers in the areas of compliance and the reduction of COemissions (Scope 3), including the definition of goals.

Green production

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

Important facts and achievements 2023

  • Completion of the expansion of logistics in Pune (IN) to create a central distribution centre for India, and further construction of a production hall in Lichtenstein and Pfullendorf (both DE).
  • 242 injection moulding machines (69%) with energy-efficient drive technology (hybrid, fully electrical, standby) and commissioning of a seventh 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 existing systems with the latest generation of WC high-pressure casting cells in Ekenäs (FI) in order to increase efficiency while simultaneously reducing energy consumption.
  • Replacement of conventional plaster casting systems with modern high-pressure casting systems in Koło and Włocławek (both PL) in order to increase efficiency, improve ergonomics and reduce raw material consumption and plaster waste.
  • Installation of further glazing robots in Carregado (PT) in order to increase efficiency, improve ergonomics and reduce raw material 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 in Koło and Włocławek (both PL).

Outlook for 2024 to 2026

  • Further increase in the number of injection moulding machines with energy-efficient drive technology from 242 to 268. Commissioning of an eighth fully electrical blow-moulding machine.
  • Continued process optimisation in the production of welded and straight Mapress fittings.
  • Further installation of the latest generation of WC high-pressure casting cells in Ekenäs (FI).
  • Further replacement of conventional casting systems in Koło and Włocławek (both PL).
  • Further automation of the glazing process for ceramic appliances in Carregado (PT).
  • Modernisation of raw material processing in Carregado (PT).

Green logistics

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

Important facts and achievements 2023

  • The transport service providers handled 524.7 million tkm, which was down on the previous year (644.5 million tkm) mainly due to the decline in volumes. This resulted in COemissions of 52,815 tonnes (previous year 65,889 tonnes).
  • Increased share of state-of-the-art Euro 6 trucks at 89% (previous year 87%).
  • Four trucks powered by natural gas in operation between Jona (CH) and Pfullendorf (DE) and on other routes.
  • The optimised calculation, better utilisation of freight capacity, bundling of long-goods deliveries and deployment of super-size trucks in Scandinavia reduced the number of trips required.
  • The eco-efficiency of logistics (environmental impact per tkm) has improved by 28% since 2015.
  • Development and approval of an applicable Group-wide packaging strategy with the aim of harmonising processes and reducing costs and resources. Improvement of master data and harmonisation of processes, plus the development of an inspection catalogue for reducing transport damage.
  • Standardisation and reduction of packaging for Geberit AquaClean Mera and Sela shower toilets by one-third. Identification of alternatives to expanding PUR-foam in transport logistics.

Outlook for 2024 to 2026

  • 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.
  • Roll-out of the packaging strategy in the plants and logistics, plus integration in the product development process. Implementation of projects with substantial reduction potential.
  • Replacement of physical product instructions with digital alternatives wherever possible (QR code).

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 2023

  • 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.
  • No relevant incidents were reported via the Geberit Integrity Line for employees, and no incidents were reported via the Integrity Line for suppliers.
  • Numerous training courses carried out on antitrust legislation and roll-out of a new eLearning tool for the European markets.
  • Processing of enquiries on the permissibility of marketing and sales campaigns under antitrust legislation, plus execution of numerous internal audits in the area of antitrust legislation.
  • Processing of enquiries on data protection. Further expansion of the data protection management system, comprehensive training activities and execution of numerous internal audits.
  • Geberit Integrity Line for employees adjusted to meet new legal requirements.
  • Migration of the EHS compliance tool for the production plants to a new software version.

Outlook for 2024 to 2026

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