Annual Report 2024

Annual Report 2024

de

Environment

Long-term value creation

Geberit had already drawn up its first environmental strategy and implemented specific measures in 1990. Over the years, this strategy was gradually developed into a comprehensive Sustainability strategy, is now an integral part of the corporate culture, and makes a significant contribution to the Sustainable Development Goals of the United Nations. The sustainability strategy bundles together current and future projects, initiatives and activities, and specifies clear responsibilities with measurable objectives, derived measures and quantifiable key figures for effective monitoring. Twelve sustainability modules form the basis of this strategy. Among these are employee attraction & retention, diversity & equal opportunity, health & safety, social responsibility, resources & circular economy, energy & CO2, water, eco-design & products as well as procurement, production, logistics and compliance & governance.

Twelve modules of the Geberit sustainability strategy

Sustainability Strategy (graphic)

For further details, see Sustainability, Sustainability strategy.

Materiality analysis as basis

The Geberit sustainability strategy is based on the materiality analysis according to GRI standards. This analysis has been regularly updated since 2014.

In the reporting year, Geberit carried out a double materiality analysis according to the European Sustainability Reporting Standards of the Corporate Sustainability Reporting Directive (CSRD). The term “double materiality” relates to the mutual relationship between a company and the economy, environment and society in which it operates. On the one hand, the business activities of a company impact the environment and society in a variety of ways (impact materiality). On the other hand, changes in environment and society have an impact on the business success of the company (financial materiality). The double materiality analysis process was carried out with the involvement of a large group of internal and external stakeholders, who were able to assess potentially material topics for Geberit with the aid of a structured survey.

The list of material topics according to CSRD will form the basis for updating the sustainability strategy. This step will be carried out in 2025. Both the new materiality analysis and the updated sustainability strategy will be published in the Annual Report 2025.

For further details, see Sustainability, Materiality analysis.

Value-oriented management and ESG governance

The value- and future-oriented corporate governance strengthens the resilience of the Geberit business model and thus the long-term value creation of the company. A sustainability-oriented business management philosophy is considered as one of the strategic success factors. This includes the long-term planning of investment projects taking an internal CO2 reference price into consideration, checking whether the defined measures have achieved their targets, and integrating the CO2 reduction target as one of five equally weighted criteria in the calculation of the bonus for management and some of the employees.

All positions involved in the sustainability strategy and its implementation, with the corresponding tasks and responsibilities, are listed below; ultimate responsibility lies with the Board of Directors. Further information can be found in the sustainability report, ESG governance.

Governance-Structure (graphic)

For further details, see Management structure.

Focus on four global goals

In 2015, the United Nations adopted the 2030 Agenda. This details 17 specific targets for sustainable development, the Sustainable Development Goals, which countries are required to implement by 2030 – with significant support from the business world. Four of these goals are particularly important to Geberit. The goal calling for “equitable access to clean drinking water and basic sanitation” (Goal 6) for all people worldwide is key to the company’s efforts, as is the goal of “sustainable cities and communities” (Goal 11). Additionally, high-quality education and further training of employees, the training of skilled crafts launched back in the 1950s and the strategy for social commitment in vocational training in newly industrialised countries (Social responsibility) all play an important role in “ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all” (Goal 4). Moreover, with the CO2 strategy, the energy master plan and the eco-design principle as the basis for product development, Geberit also contributes to “taking urgent action to combat climate change and its impacts” (Goal 13).

Geberit again honoured with EcoVadis award

The Geberit Group has once again been recognised for its sustainability management by EcoVadis. With the Gold rating, Geberit thus finds itself in the top five percent of rated companies. EcoVadis is one of the world’s largest providers of business sustainability ratings and has created a global network of over 150,000 companies in over 180 countries. The comprehensive analysis takes into account 21 criteria in the areas Environment, Labour & Human Rights, Ethics and Sustainable Procurement, and contributes towards ensuring transparency in sustainability performance of the companies. The Gold rating shows both customers and suppliers that Geberit has a comprehensive, systematic sustainability management in place.

Eco-efficiency continuously improved

The absolute environmental impact of the Geberit Group increased by 2.4% in 2024 due to volume-related reasons. Currency-adjusted net sales increased by 2.5% in the same period. In contrast, the relative environmental impact (eco-efficiency; calculated from environmental impact in relation to currency-adjusted net sales) remained stable. Since the integration of the energy-intensive ceramics production in 2015, eco-efficiency has improved by 62.6%, corresponding to an average annual improvement of 10.3%. Geberit therefore remains on course to achieve its long-term target of an average improvement of 5% per year.

In order to measure environmental performance, the Swiss Ecological Scarcity Method has been used for many years, which takes into consideration a wide range of environmental impact factors (emissions, resources, waste) and summarises them as a key figure.

Environmental impact
2015–2024

(Index: 2015 = 100)

% 0 160000 240000 320000 400000 0 25 50 75 125 150 100 2022 2023 2021 2020 2019 2018 2017 2016 2015 2024 % Net sales, currency-adjusted, indexed Environmental impact, absolute Environmental impact, in relation to currency-adjusted net sales, indexed Environmental impact in million UBP* 400,000 320,000 240,000 160,000 80,000 0
* UBP = Eco-points in accordance with the Swiss Ecological Scarcity Method (version 2021)

On the path towards reducing CO2 emissions

The Geberit Group stands for an ambitious and implementation-oriented approach in its activities. As a Swiss company, Geberit is obliged to follow the net zero target for 2050 as targeted in the revised Swiss CO2 Act and the corresponding Swiss climate strategy. The core element of the Geberit climate transition plan is the comprehensive CO2 strategy, which was already introduced in 2022. This CO2 strategy is integrated in all relevant business processes and specifies the handling of CO2 emissions as external costs by means of an internal CO2 reference price. With the CO2 strategy, Geberit’s medium-term goal is a CO2 reduction of 5% per year compared to currency-adjusted net sales, resulting in an 80% reduction in relative CO2 emissions by 2035 compared to the reference year 2015.

Compared to the previous year, absolute CO2 emissions at the Geberit Group increased in 2024 due to volume-related reasons by 2.4% to 123,975 tonnes (2023: 121,014 tonnes). This increase corresponds to the increase in currency-adjusted net sales. As a result, CO2 intensity (CO2 emissions in relation to currency-adjusted net sales) remained at the previous year’s level (-0.1%). However, since the acquisition of the energy-intensive ceramics production in 2015, CO2 intensity has been improved by 63.2% overall, which corresponds to an average reduction in relative CO2 emissions of 10.5% per year. As mentioned above, the medium-term goal is to reduce relative CO2 emissions by 5% per year.

CO2 emissions
2015–2024

(Index: 2015 = 100)

75 100 % 2022 2023 2021 2020 2019 2018 2017 2016 2015 2024 0 25 50 125 150 % CO 2 emissions, in relation to currency-adjusted net sales, indexed Net sales, currency-adjusted, indexed CO 2 emissions, absolute CO 2 emissions in tonnes 250,000 200,000 150,000 100,000 50,000 0

The calculation of Group-wide CO2 emissions was again externally audited in the reporting year. Carried out by the consulting company intep, the successful audit of the greenhouse gas balance sheet (“limited assurance”) included the calculation of CO2 emissions in Scopes 1 and 2, as well as the verification of processes on which this calculation is based. The standards of the WRI/WBCSD Greenhouse Gas Protocol and ISO 14064-1 were applied here (see also Audit Report Greenhouse Gas Balance).

For 2024, the CO2 reference price was set at EUR 80 per tonne. This was based on the price of the European Emissions Trading System (ETS) for CO2. The CO2 reference price embodies the costs for saving one tonne of CO2. An implicit CO2 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. With the CO2 reference price, the responsibility for reducing the carbon footprint is widely supported within the company, thus ensuring that the measures taken have a long-term effect.

CO2 reduction measures: examples from production

Pivotal in the CO2 strategy are measures for saving energy, increasing efficiency, heat recovery and procuring renewable energy in the production plants. The corresponding measures are implemented using an energy master plan. Among other projects, a new tunnel kiln was put into operation in Carregado (PT) in 2024. This kiln is 120 metres long, can be loaded on two levels and replaces three existing kilns. The plant is then not only more energy efficient, but also recovers energy from the hot exhaust air in the cooling zone. This is then used for operating the dryers and ventilation units. By replacing the old kilns with the new system, energy savings of around 40% can be achieved. Furthermore, as part of the structural reduction approach at the ceramics plants, new, alternative technologies for firing the appliances are also regularly evaluated.

In addition to technological innovations such as the aforementioned new tunnel kiln and the installation of a second high-pressure casting system at the ceramics plant in Koło (PL), the manufacturing processes in ceramic production are continually optimised. The goal is to constantly increase quality while simultaneously reducing scrap rates. Both of these aspects contribute to a reduction in energy consumption. A Group-wide project was launched here in 2023. The first measures in the casting area were implemented at the plants in Koło (PL) and Haldensleben (DE). By the end of the reporting year, the process optimisations had, for example, resulted in a reduction in the scrap rate of around 40% at the plant in Koło compared to the initial situation before the start of the project. During the same period, the energy consumption per kilogram of ceramic fell by 6.5% and CO2 emissions by over 9%.

Additionally, the product-specific specialisation at the ceramics plants led to further improvements in the energy efficiency of the ceramic appliances.

Electricity from renewable energy sources

Finally, the reduction of CO2 intensity is also down to the systematic increase in the share of electricity from renewable energy sources in overall electricity consumption. In 2024, 134.6 GWh (previous year 128.3 GWh) of green electricity with proof of origin was purchased, which corresponds to 65.0% of the entire volume of purchased electricity. As a result, CO2 emissions were reduced by around 61,900 tonnes (previous year around 57,500 tonnes). Taking into account electricity from renewable energy sources included in the standard electricity mix, the share of renewable energy sources in electricity was around 80%, the same as in the previous year.

To increase the share of renewable energies, continuous investments are made in the expansion of the photovoltaic infrastructure. In 2024, two new systems were installed on the roofs of the building extensions in Pfullendorf and Lichtenstein (both DE), while the roof of the existing production building in Matrei (AT) was also equipped with systems for generating solar power. For more details, see Performance 2024.

Focus on water consumption

Careful, sparing use of water as a valuable resource is one of Geberit’s core areas of focus. The consistent focus on reducing water consumption both in production and in the product use phase is the company’s greatest lever for contributing to sustainable development.

In the reporting year, water consumption in production totalled 880,759 m3 (previous year 850,178 m3). In comparison with 2015, the year of the integration of the ceramics business, water consumption fell by 24.7%. Geberit consistently applies measures to successively reduce water consumption. In particular, this includes measures such as reusing water in laboratories and the production process. Ceramic production accounts for the biggest share of water consumption at around 80%. In this area, water consumption increased by 7.5% compared to the previous year. However, savings of 25.3% have also been achieved here since 2015.

With eco-design, the products are checked and improved with regard to water consumption. Geberit’s innovative sanitary products help to systematically optimise water consumption in buildings. Rimless ceramic appliances, the optimised TurboFlush technology installed in an increasing number of Geberit toilet models, water-saving taps and urinals as well as the flush valves type 208 and 212 help to handle water sparingly. According to a model calculation, water consumption for toilet flushing, for example, has decreased since 1952 by around 80% from 70 litres to 14 litres per person per day thanks to several innovations such as the flush-stop cisterns and Geberit dual flush.

Circular economy and longevity

The aim of the circular economy is to operate an economic cycle in the most resource and environmentally friendly way possible. Geberit sees the development of durable products as making the largest contribution to saving resources and the circular economy. The longer a product can be used, the lower the resource input per use. Thanks to the use of high-quality materials and strict quality requirements, Geberit products can be used for decades. The service life often exceeds 50 years, for example in the case of plastic drainage pipes. The quality and longevity of products is also supported by a particularly long spare parts availability – 50 years for concealed cisterns and their mechanical components, and 25 years for a significant proportion of the rest of the product range. In addition. a large proportion of the ceramic products come with a lifetime guarantee.

Geberit products can be cleaned, maintained and repaired easily. They are also backwards-compatible, meaning newly launched products and innovations can be combined easily with older models or device components. This backwards compatibility – for example, in the case of actuator plates – also contributes to a longer service life of a previously installed product.

Eco-design

Eco-design is the key to an efficient handling of resources. Geberit has consistently been developing its own products in line with this principle since 2007. All environmental aspects are examined, from the selection of raw materials right through to disposal. The eco-design principle follows the circular economy approach. This ensures that every new product is better than its predecessor from an ecological perspective. The energy efficiency and the water consumption of the products in the product use phase are also continuously improved. Since 2007, around 200 eco-design workshops have been held as part of the development of new products.

The eco-design principle using the example of the Geberit WC System

Ecodesign (graphic)
The WC System with Acanto toilet was also developed consistently in line with the eco-design principle. The principle is illustrated in the figure. The Acanto toilet is installed on the Duofix installation frame. The environmental data for both ceramic appliances and Duofix are shown transparently in an environmental product declaration (EPD). The combination of innovative TurboFlush technology and the flush valve type 212 ensures that the toilet is flushed out cleanly, even with flush volumes of 2.6 litres (partial flush) and 4 litres (full flush). The flush is actuated by the recyclable Sigma30 actuator plate made of plastic, which is fastened in a frame made of 100% recycled ABS. All products are distinguished by their durability. They can be repaired even after many years of use as the availability of spare parts for concealed cisterns – for example, flush and fill valves – is guaranteed for a period of 50 years.

Careful use of plastics

Among other aspects, the use of recycled plastics is also promoted as part of the eco-design workshops. In particular, work continues towards constantly increasing the share of bought-in plastic regranulate used (post-consumer waste). Alongside recycled ABS, a suitable recycled material was also evaluated for applications involving polypropylene (PP) and polyethylene (LDPE). This will be used increasingly, for example as transport protection for Mepla pipes. Thanks to internal recycling, almost 100% of all processed plastic waste can also be reused in the company’s own production.

Furthermore, Geberit participates in the Operation Clean Sweep (OCS) initiative. OCS is an international initiative promoted by the plastics industry dedicated to preventing the loss of plastic granules and ensuring that these materials do not pollute the environment. All Geberit plants that process plastics take part in the initiative and implement appropriate improvements.

Reducing the use of packaging material

Geberit has been following a new packaging strategy since 2023. The goal is to continuously reduce the amount of packaging material while also increasing the share of recycled material used in plastic packaging. The first results from this new strategy can be seen on the shower toilet. The packaging was standardised and simplified in the reporting year, allowing the amount of packaging used to be reduced by a third. Additionally, the packaging of the Sigma01, Sigma20 and Sigma30 actuator plate models was significantly reduced in size.

Green building supported by data transparency

Green building is becoming ever more important. Building standards and certificates such as LEED (Leadership in Energy and Environmental Design), DGNB (Deutsche Gesellschaft für nachhaltiges Bauen – the German Sustainable Building Council) and BREEAM (Building Research Establishment Environmental Assessment Method) have a positive impact on sustainability aspects when planning the sanitary technology, as does digital building planning with BIM. Thanks to the available data relating to sustainability, transparency is increased.

For many years, Geberit has been creating product life cycle assessments and externally inspected environmental product declarations (EPDs) in accordance with the European standard EN 15804+A2, and makes these available to architecture firms and planning offices in digital form. EPDs present relevant, comparable and verified information about a product’s environmental impact in a transparent manner. In the reporting year, the existing 14 EPDs were supplemented by four new EPDs for the fittings on drainage systems (PE, Silent-db20, Silent-Pro and Silent-PP) and one for the AquaClean Alba shower toilet. This means that products with an EPD account for around 42% of Group sales.

Comprehensive controlling and reporting

Since 2006, the sustainability performance of the Geberit Group has been reported annually in accordance with the guidelines of the Global Reporting Initiative (GRI). The information disclosed within the scope of this reporting was compiled in accordance with the GRI Standards 2021. The corresponding GRI Content Index was audited according to the GRI Content Index – Essentials Service and met the requirements, see GRI Content Index.

The content of this report was compiled in accordance with Art. 964a ff. of the Swiss Code of Obligations and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for climate reporting (Art. 964a ff. CO Content Index). It also reflects the recommendations of the Sustainability Accounting Standards Board (SASB Index). Furthermore, the report also shows how the company is contributing to the UN 2030 Agenda for Sustainable Development and to the Sustainable Development Goals (SDGs).

Geberit has been a member of the United Nations (UN) Global Compact since 2008. The purpose of this worldwide agreement between companies and the UN is to place globalisation on a more social and ecological footing. Geberit is also a member of the local network of the UN Global Compact. The Code of Conduct for Employees and the Code of Conduct for Suppliers further incorporate the topic of sustainability. Continuously improved compliance processes ensure compliance with guidelines and directives. A system for the control and management of all risks involved in entrepreneurial activities is in place throughout the Group (see also Risk management).

Geberit aims to further reinforce its leading position in the industry in the area of sustainability. A major tool helping to achieve this target is the integrated Geberit Management System, which unites the aspects quality, environment, occupational health and safety, and energy. All production plants throughout the world, the logistics centre in Pfullendorf (DE) and the management company incorporating all Group functions at headquarters in Rapperswil-Jona (CH) are certified in accordance with ISO 9001 (quality), ISO 14001 (environment) and ISO 45001 (occupational health and safety). Additionally, five German production plants have an ISO 50001 (energy) and nine sales companies an ISO 9001 certification.

Further increased importance of sustainable business management for customers and the capital market

In terms of customers, the importance of sustainable products and sustainable business management is increasing, see also EcoVadis. Geberit uses a variety of information channels to meet the increased demand for information on sustainability. In the reporting year, communication on sustainability was further expanded and consolidated for specific customer groups (architects, sanitary specialists, consumers). At the same time, Geberit employees in marketing were also informed about the topic of greenwashing. Furthermore, education and training on current sustainability topics and due diligence obligations were carried out for the company’s own employees in procurement.

The activities in terms of sustainable business management are also recognised by the capital market. The Geberit share is prominently represented in the sustainability stock indices and sustainability funds segment. Geberit wants to continue to play a pivotal role in the “ESG” and “Water” investment segments.