Annual Report 2022

Annual Report 2022

de

Sustainability strategy

For Geberit, sustainability means being oriented towards the future as well as operating and being successful over the long term. A long-term orientation means striking a balance 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 sustainable 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.

The graphic below shows how Geberit implements integrated sustainability and thus creates value. 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. 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 six growth and earnings drivers. The sustainability strategy supplements the corporate strategy and the growth and earnings drivers with twelve concrete modules. These modules strengthen the 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. 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 number 6 – “Clean Water and Sanitation” – and goal number 11 – “Sustainable Cities and Communities” – are a key focus for Geberit. However, significant contributions are also made when it comes to “Decent Work and Economic Growth” (goal number 8) and “Industry, Innovation and Infrastructure” (goal number 9). In addition, Geberit is consistently committed to climate change mitigation (goal number 13) and to inclusive, equitable, high-quality education for employees and customers (goal number 4).

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
11,514
employees
Info
283
apprentices
Info
17 hours
training and education per employee
Info
CHF 9.5 million
on workshops for disabled persons, meaningful work for about 550 people
Info
453 GWh
combustibles consumption (-10.3%)
Info
219 GWh
electricity consumption (-5.5%), 112 GWh green electricity, 71.3% renewable energy
Info
908,407 m3
water consumption (-1.8%)
Info
CHF 155 million
Investments in property, plant and equipment and intangible assets
Info
CHF 72 million
R&D expenditures
Info
43.7%
Equity ratio
Info
27
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” business model
  • Technology penetration
  • Value strategy
  • Innovation leadership
  • Sustainability leadership
  • Selective technology penetration
  • Continuous process and cost optimisation

Medium-term goals

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Results
People
Planet
Profit
57%
managerial positions filled with internal candidates
Info
83%
transfer rate of apprentices
Info
AFR 8.2
accidents per million working hours performed
Info
99.8%
employees in production plants certified with ISO 45001
Info
56.8%
Improvement of eco-efficiency seit 2015
Info
150,591 t
CO2 emissions (-18.1%)
Info
99.8%
employees in production plants certified with ISO 14001
Info
3,840
million m3
water saved due to Geberit products
Info
+4.8%
Currency-adjusted net sales growth
Info
26.8%
Operating cashflow margin
Info
CHF 562 million
Free Cashflow
Info
CHF 20.48
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 2022, plus an outlook for the years 2023 to 2025. This sustainability strategy covers the entire Geberit Group and indicates how Geberit wants to be a pioneer and leader in the sanitary industry when it comes to sustainability.

People

Employee attraction & retention

Icon People (icon)

Geberit positions itself as an attractive employer and strives to offer jobs of the highest quality.

Important facts and achievements 2022

  • Expansion of the valYOU performance management process for assessing performance at individual production sites.
  • Introduction of a standardised Group-wide management training course, particularly for new managerial staff.
  • Potentials Management Programme for talented prospects 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 and BEST networks.
  • Development programme for over 100 regional sales managers from European sales companies based on standardised management principles and instruments.
  • Employment of 283 apprentices with a transfer rate to a permanent employment relationship of 83%.
  • Execution of management training with the Business School at the University of St. Gallen for some 220 senior managers.

Outlook for 2023 to 2025

  • Group-wide implementation of valYOU at all production sites.
  • 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.
  • Targeted support for transfer of apprentices to a permanent position. Target rate is 75%.

Important facts and achievements 2022

  • Expansion of the valYOU performance management process for assessing performance at individual production sites.
  • Introduction of a standardised Group-wide management training course, particularly for new managerial staff.
  • Potentials Management Programme for talented prospects 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 and BEST networks.
  • Development programme for over 100 regional sales managers from European sales companies based on standardised management principles and instruments.
  • Employment of 283 apprentices with a transfer rate to a permanent employment relationship of 83%.
  • Execution of management training with the Business School at the University of St. Gallen for some 220 senior managers.

Outlook for 2023 to 2025

  • Group-wide implementation of valYOU at all production sites.
  • 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.
  • Targeted support for transfer of apprentices to a permanent position. Target rate is 75%.

Diversity & equal opportunity

Icon People (icon)

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 2022

  • Strategic review on diversity, equal opportunity and inclusion.
  • Employee survey on needs in the areas of equal opportunity, the promotion of women and the reconciliation of family and working life.
  • Workshops for disabled persons were commissioned with assembly and packaging work totalling CHF 9.5 million, thus giving around 550 people meaningful work.
  • Approval of strategy for promoting inclusive workplaces.

Outlook for 2023 to 2025

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

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 2022

  • Global certification of all production plants (except Stryków (PL)) and central logistics in accordance with ISO 45001 (occupational health and safety).
  • Exchange of best practices and accident analyses encouraged, plus implementation of audits across plants.
  • Increase in the accident frequency rate (AFR) by 3.8% to 8.2 (accidents per million working hours) and in the accident severity rate (ASR) by 3.1% to 157.5 (days lost per million working hours). The absenteeism rate due to accidents and illness was 5.46%.
  • 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.
  • Development of applicable Group-wide safety standards aimed at increasing the safety level.

Outlook for 2023 to 2025

  • Initial certification of the plant in Stryków (PL) according to ISO 45001.
  • Halving of the accident frequency rate and accident severity rate between 2015 and 2025; AFR target: 5.5; ASR target: 90.
  • Implementation of further cross-site audits.
  • Further improvement in ergonomics, particularly in the ceramics plants and in logistics.
  • Expansion of “Geberit Vital” programme to additional sites.
  • Continuation of the eLearning programme on occupational safety in the production plants.
  • Continuation of the action plan for reducing quartz dust.
  • Roll-out of safety standards in the production plants and logistics.

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 2022

  • Geberit employees contributed 1,890 hours of charitable work as part of social projects.
  • Performance of a volunteering project in Nepal with 14 Polish employees in collaboration with Helvetas.
  • Implementation of a social project in Turkey with twelve Geberit apprentices. Renovation of sanitary installations at a primary school for over 1,000 children.
  • 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).
  • Development of a revised strategy for social commitment at Geberit.

Outlook for 2023 to 2025

  • Implementation of a social project in India with apprentices.
  • Review of the effectiveness of social projects with apprentices two to three years after their implementation.
  • Implementation and further development of a training programme for plumbers in Kenya in collaboration with the Hilti Foundation.

Planet

Resources & circular economy

Icon Planet (icon)

Geberit conserves natural resources and practises the circular economy along the value chain.

Important facts and achievements 2022

  • Update of the basic data (Ecoinvent) and eco-factors, plus switchover to local electricity mix (market-based).
  • The absolute environmental impact decreased by 17.1%, while the environmental impact in relation to currency-adjusted net sales (eco-efficiency) was reduced by 20.9%. This figure is clearly above the target of 5% per year.
  • Global certification of all production plants (except Stryków (PL)) 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 13%.
  • Internal recycling of around 9,100 tonnes of plastic waste from production, with 934 tonnes of high-quality ABS regranulate and 4.1 tonnes of PP regranulate used.
  • Active participation in Operation Clean Sweep to prevent the pollution of the environment with plastic pellets.
  • Resource efficiency was improved in ceramic production by 7.6% to 0.41 kg waste/kg ceramic.

Outlook for 2023 to 2025

  • Improvement of eco-efficiency by 5% per year.
  • Reduction of hazardous substances in production plants by 5% per year.
  • Initial certification of the plant in Stryków (PL) according to ISO 14001.
  • Search for further high-quality plastic regranulates.
  • 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

Icon Planet (icon)

Geberit actively contributes to climate change mitigation and consequently reduces its energy consumption and CO2 emissions along the value chain.

Important facts and achievements 2022

  • New CO2 strategy with comprehensive targets and measures, introduction of an internal CO2 reference price and establishment in the bonus matrix. External validation of CO2 emissions carried out for the first time.
  • Update of the basic data (Ecoinvent), plus switchover to local electricity mix (market-based).
  • Decrease of absolute CO2 emissions (Scopes 1 and 2) by 18.1% to 150,591 tonnes, and reduction of CO2 emissions in relation to currency-adjusted net sales (CO2 intensity) by 21.9%.
  • Improvement in CO2 intensity of 56.4% since the acquisition of the ceramics business, or 9.9% per year on average.
  • The volume of purchased green electricity increased by 26.7 GWh to 111.8 GWh. Renewable energy sources accounted for 71.3% of electricity and 4.9% of combustibles.
  • 3.3 GWh of green electricity was produced in Givisiez (CH) and Pfullendorf (DE).
  • Five German production plants received ISO 50001 certification (energy).
  • Development of an internal guideline for planning and building PV installations.

Outlook for 2023 to 2025

  • Same improvement in CO2 intensity as for eco-efficiency by 5% per year on average.
  • Reduction of relative CO2 emissions (Scopes 1 and 2) by 80% between 2015 and 2035 to 121,000 tonnes.
  • Introduction of an energy/CO2 master plan at the plants with the largest carbon footprint.
  • Evaluation of technologies and alternative fuels for achieving carbon-neutral ceramic production.
  • Replacement of three old, inefficient tunnel kilns with a new modern kiln in Carregado (PT).
  • Purchase of an additional 10 GWh of certified green electricity in Slovenia and Italy.

Water

Icon Planet (icon)

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

Important facts and achievements 2022

  • Almost 100% of the water consumed by Geberit can be attributed to the product usage phase.
  • Since 1998, some 42,050 million m3 of water has been saved to date through the use of water-saving flushing systems. In 2022 alone, the water saved amounted to 3,840 million m3.
  • Water consumption in ceramic production increased by 8.7% to 6.4 l/kg ceramic.

Outlook for 2023 to 2025

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

Eco-design & sustainable products

Icon Planet (icon)

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 2022

  • Over 180 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 unit type 212 for cisterns – flexible setting, backwards-compatible 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 in production.
    • ProTect Silent sound insulation panel for prewalls – fewer resources used, good recyclability and 60% of the material used comes from recycled PET bottles.
  • 97% of bathroom furniture of the Geberit brand and 65% of the remaining bathroom furniture is FSC™ certified (FSC-C134279).
  • Creation of a new environmental product declaration for the Duofix WC element in accordance with the EN 15804+A2 standard. Products with an EPD now account for around 30% of Group sales.
  • Voluntary purchase of high-quality CO2 certificates for ceramic products in selected series from a forest conservation project run by the Swiss myclimate foundation in Tanzania.
  • With 76 out of 100 points, Geberit was awarded the platinum rating on the EcoVadis platform for the third year running.

Outlook for 2023 to 2025

  • Eco-design workshops carried out in product development and basic projects.
  • Integration of “Design for Recycling” principles in product development.
  • Further expansion of the portfolio of sustainable products.
  • Spare parts availability increased from 25 to 50 years for concealed cisterns, plus lifetime guarantee for ceramic products.
  • 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 according to EN 15804+A2 and creation of further EPDs.
  • More systematic recording of environmentally relevant product data, i.e. for BIM.
  • 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 CO2 emissions (Scope 3).

Important facts and achievements 2022

  • The Code of Conduct was signed by 3,296 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 167 suppliers (some 7% of the procurement value).
  • The supplier sustainability risk matrix was updated, with four third-party EHS audits carried out at suppliers in China, Turkey and Bosnia and Herzegovina.
  • Regular training on procurement and sustainability at the sales organisation. Participation in a working group of the UN Global Compact on sustainable supply chains.
  • Analysis of existing and new laws on supply chains in Europe together with the derivation of suitable measures.

Outlook for 2023 to 2025

  • All new suppliers have to sign the Code of Conduct.
  • 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 newly developed internal audit tool.
  • Development of a concept for more intensive collaboration with suppliers for reducing CO2 emissions (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 2022

  • Expansion of logistics in Pune (IN) and construction of a production hall in Lichtenstein and Pfullendorf (both DE). Opening of a new site for manufacturing bathroom furniture in Stryków (PL).
  • 229 injection moulding machines 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 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.
  • Commissioning of first glazing robot in Carregado (PT) in order to increase efficiency, improve ergonomics and reduce raw material consumption.

Outlook for 2023 to 2025

  • Further increase in the number of injection moulding machines with energy-efficient drive technology from 229 to 245. Commissioning of an eighth fully electrical blow-moulding machine.
  • Continued process optimisation in the production of welded and straight Mapress fittings.
  • 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 and water 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.
  • Further automation of the glazing process 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 2022

  • Update of the logistics calculator for calculating CO2 emissions and environmental impact with new basic data and ecological factors, plus expansion with additional drive types for trucks.
  • The transport service providers handled 644.5 million tkm, which was down on the previous year (672.3 million tkm) mainly due to the decline in volume. This resulted in CO2 emissions of 65,889 tonnes (previous year 70,666 tonnes).
  • Increased share of state-of-the-art Euro 6 trucks at 87% (previous year 82%).
  • Four trucks powered by natural gas in operation between Jona (CH) and Pfullendorf (DE) and on other routes.
  • The optimised calculation and better utilisation of freight capacity as well as the bundling of long-goods deliveries reduced the number of trips required.
  • The eco-efficiency of logistics (environmental impact per tkm) has improved by 31% since 2015.
  • The ongoing reduction of the amount of packaging saves resources and reduces the environmental impact.

Outlook for 2023 to 2025

  • 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.
  • Development of an applicable Group-wide packaging strategy with the aim of harmonising processes and reducing costs and resource consumption.
  • Further optimisation of packaging quantities taking into account the optimal protection and transportability of the products.

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 2022

  • 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.
  • Three incidents were reported via the Geberit Integrity Line for employees, and no incidents were reported via the Integrity Line for suppliers.
  • Repetition of the eLearning programme on antitrust legislation at sales companies outside Europe. Development of new training concepts for the European markets, which were carried out in several countries.
  • Processing of enquires 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 enquires on data protection. Further expansion of data protection compliance, comprehensive training activities and execution of numerous internal audits.
  • Roll-out of the EHS compliance tool in six additional production plants in Europe and in central logistics in Pfullendorf (DE).

Outlook for 2023 to 2025

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