Materiality analysis

Since 1990, Geberit has followed a long-term environmental strategy. Over the years, this strategy was continuously expanded into a sustainability strategy. This sustainability strategy is based on a materiality analysis according to the GRI standards. The Geberit Group has been reporting in accordance with these standards since 2006.

Material topics are determined in a gradual process. Twenty topics were chosen from a range of economic, social and environmental issues relating to common sustainability standards, industry-specific information as well as the corporate strategy and sustainability strategy of the Group. These were evaluated according to their relevance for the success of the business in an internal process involving management. Additionally, the stakeholder panel convened on a regular basis assesses the relevance of various issues in terms of their impact on the business activities of Geberit. The results were consolidated in a list of economic, social and environmental issues and were validated and approved by the Board of Directors and the Group Executive Board. The materiality analysis has been updated on a regular basis since the first analysis in 2014.

Double materiality in accordance with CSRD

The Geberit Group carried out a double materiality analysis in the 2024 reporting year. 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 analysis of material topics is based on the following regulatory requirements and reporting standards: the provisions regarding non-financial reporting detailed in Art. 964a ff. of the Swiss Code of Obligations (CO) applicable from 1 January 2024, including climate reporting in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and the European Sustainability Reporting Standards (ESRS) of the Corporate Sustainability Reporting Directive (CSRD).

The materiality analysis process consists of the following steps:

Context analysis: Identification of the relevant stakeholders and analysis of the value chain.

Initial assessment of topics: Evaluation of the 94 ESRS topics in terms of their actual and potential impacts on people, society and environment (scale, scope, irremediability and likelihood) and financial effects on Geberit (magnitude, likelihood). This was made in close cooperation with internal departments: Human Resources, Procurement, Sustainability, Legal Services/Compliance, Finance, Marketing and others. Their assessments were based on internal investigations, regulatory requirements and trends seen in the industry and globally.

Selection of shortlist: Based on the internal assessment, 40 topics were selected and combined to form a shortlist of 20 topics. These topics were then subjected to a further analysis and evaluated in terms of their impacts, risks and opportunities.

Survey of impact materiality: 99 of a total of 168 surveyed internal and external stakeholders (industry partners, investors, customers, suppliers, media, authorities, own employees, NGOs, research institutions and transport companies) evaluated the 20 selected topics on a scale of 1 (low) to 4 (significant) in terms of the positive and negative impacts of Geberit’s business activities on people, society and environment.

Survey of financial materiality: 24 of a total of 30 surveyed Geberit managers evaluated the 20 selected topics on a scale of 1 (low) to 4 (significant) in terms of the actual and potential financial risks and opportunities for the business success of Geberit.

Prioritisation of topics: A value of 3.0 was defined as the limit for prioritisation. This value indicates that the topic goes beyond that of simple relevance and demands significant attention and resources, or indicates material economic, environmental or social impacts. Topics that reached or exceeded this limit value in at least one of the two areas were included in the list of material topics according to ESRS.

The list of material topics resulting from the process forms the basis for updating the sustainability strategy. This step will be carried out in 2025. The results of the new materiality analysis and the updated sustainability strategy will be published in the Annual Report 2025.

The current report still refers to the sustainability strategy valid in 2024 Sustainability strategy and the resulting processes and goals.