Corporate Responsibility Report 2020
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Corporate Responsibility Report 2020
H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 02
Contents
Highlights 2020 Paving the way Introduction Roadmap 2022 Our reporting areas Appendix
From eco-friendly A conversation Setting the scene: an Global trends How we manage How we report
modernization to with our Chairman external perspective 13 sustainability 41
digitally connected and our CEO 08 15
units 04 Priorities and Statement of the
03 About Schindler goals 2018 – 2022 Environment external assurer
10 14 16 42
A forward-looking Society GRI Content Index
perspective 27 43
11
Governance SASB metrics
36 48
References
49
GRI: Global Reporting Initiative
SASB: Sustainability Accounting Standards Boards
H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 03
Highlights 2020
Eco-friendly
Simplifying building All our major Indian A holistic data solution
modernization
traffic planning sites are certified by for green buildings
Our latest modernization solution,
Schindler InTruss, enables the upgrad- Schindler played a decisive role the Indian Green BuildingMinds, our Berlin-based
ing of escalators and moving walks within ISO in setting the first Building Council start-up, launched its platform
providing advanced analytics and
without the need to change the modern global standard for the Data Scalable Open by
easy-to-use dashboards to define ownership insights design
supporting structure (the truss). This planning and selecting of
elevators in buildings. Our
Boosting hygiene net-zero strategies in the real
means existing escalators and moving Risk Advanced
perspective analytics
walks can be fitted with the latest simulation-based methodology We brought to market our eight estate sector.
energy-efficient technology, providing has been recognized by the Schindler CleanMobility solutions See page 24
lower energy consumption and global norm ISO 8100-32:2020, to support mobility in a post-crisis
better passenger comfort and safety. confirming our leading role in world marked by a heightened
100%
See page 23 reliable traffic planning. focus on hygiene. This new
range includes touchless, saniti- We joined the
See website
zation, and physical distancing UN Global Compact
innovations that boost hygiene of Schindler employees and are committed
and safety in elevators, on completed at least one Code to its 10 universal
We are disclosing sector-specific The garden pavilion
escalators, and on moving walks. at the vast of Conduct training. principles
SASB metrics for the first time. Schindler campus
See page 48 See website and factory in Pune See page 38 See website
90% 1 529 829
Safe installations Technical/safety training delivered (hours) People moved each day on
digitally connected units:
Our robotic system Schindler R.I.S.E – Carbon Disclosure Project Rating 2020
the world’s first self-climbing, autono-
mous robotic system able to conduct of our Shanghai escalator A–
installation work in an elevator shaft assembly plant energy See page 31
– is now operational, making elevator consumption was generated
200
installations in tall buildings faster, from solar panels on-site. We support
more accurate, and safer for our
employees.
See website
Schindler is among the million
top 4% in our industry
(2019: Silver rating)
See page 23
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Paving the way
A conversation
with our Chairman
and our CEO
“We at Schindler
aim to seize the
climate crisis challenge,
and do our part
for our planet,
society, and our
business.”
Silvio Napoli, Chairman
Executive Chairman of the Board
of Directors, Chairman of the Su-
pervisory and Strategy Committee
and of the Nomination Committee
since 2017.
Thomas Oetterli, CEO
CEO since 2016, member of the
Group Executive Committee since
2010.
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Paving the way
Schindler Chairman Silvio Napoli and
CEO Thomas Oetterli discuss major
and the most urgent sustainability
challenges – urbanization, the climate “We are co-creating
crisis, and an aging global population new, sustainable,
– with engeability founder and passenger-centric solutions
with our partners in
Managing Director Barbara Dubach.
science, facility
management, and the
construction industry.”
Silvio Napoli
Chairman
Which global trends are influencing Schindler’s What is the significance of sustainability for Where do you see the biggest innovation potentials
strategy and performance the most? Schindler’s business success and how do you and market opportunities for Schindler to generate
Silvio Napoli, Chairman: The megatrends that mainly integrate the topic in your daily business? significant additional revenue?
influence our business are urbanization, an aging popula- Thomas Oetterli, CEO: Buildings and construction T.O.: Schindler is much more than a manufacturer of
tion, and the climate crisis that has been leading to the account for as much as 38% of global CO2 emissions, with elevators, escalators, and moving walks. Our products and
industrial revolution 5.0. Urban land is a limited resource 80% of all buildings in 2050 already existing today. Our services not only move people safely and sustainably in
and cities will continue to grow vertically. At the same customers are looking for climate-neutral building infra- and across urban areas, but also minimize waiting time for
time, people are aging and need to be assisted in being structure and modernizing solutions. With our range of elevators, for example, and optimize equipment use.
transported within those cities. Both increase the demand digital services and energy-efficient equipment, we enable S.N.: Today, with new technology, we can capture energy
for vertical mobility solutions. The climate crisis will affect this transformation. generated by elevators and send it back into the network.
the way we live. We need to seize the challenge and do We can also connect an elevator ride with public transpor-
our part for our planet, society, and our business. tation. We are co-creating new, passenger-centric solu-
tions with partners from science, the construction and
facility management industries. For example, we work with
EPFL in Switzerland on testing new materials and business
models.
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Paving the way
How has the pandemic impacted your business as How will you ensure that your vehicle fleet reflects What about setting a net-zero strategy for Schindler?
well as your products and services? the transformation in mobility and matches the S.N.: We have been actively working on a net-zero strat-
S.N.: Schindler showed incredible resilience and I am image of a high-tech company? egy since 2020. We are considering both our own com-
humbled to see the resolve and solidarity of our employees, T.O.: Two thirds of our employees are either working on pany as well as the full product life cycle, from design to
who have been going the extra mile to keep all critical
“Our customers are a job site installing or modernizing elevators and escalators manufacturing, installation, and service. Before making a
infrastructure running and to support communities around looking for climate-neutral or providing services to our customers. The CO2 emissions public statement, we want to make sure we understand
the world. Corona has been a catalyst for innovation and equipment and for we generate are mainly caused by our vehicle fleet. There- all the implications, create a comprehensive and actionable
leading-edge digital solutions to become mainstream. fore, we aim to reduce travel and to improve transporta- plan internationally, test feasibility, and ensure account-
Already before the pandemic, Schindler had pioneered
solutions to modernize tion options. We have tested solutions such as biofuel, ability. We are confident that with this thorough approach
touchless technology to use an elevator by recognizing buildings. With our electric cars and bikes, and have adapted our infrastructure we will find our appropriate answer to best tackle this
your ID via a chip or a mobile phone. Our customers have offering we can support by offering charging stations. In China, we are currently important challenge.
embraced our CleanMobility solutions using UV light to launching a new solution, where technicians can transform
disinfect escalator handrails or the air in elevator cabins.
and enable this their suitcase with all their tools into a small scooter.
All these developments prove once more that software is transformation.” S.N.: We are looking into transforming our fleet policy
as important as hardware to offer people safe and efficient Thomas Oetterli to a more holistic Global Mobility Policy. With technology Interview conducted by Dr. Barbara Dubach,
founder and Managing Director of engageability
transportation. CEO we can optimize the routes our technicians use, so they – a Swiss center of excellence for innovative,
spend less time in cars and more time with our customers. future-oriented sustainability business solutions.
What about employee safety in 2020? We are also working with mobility partners and exploring
T.O.: The safety and well-being of our employees, their collaboration opportunities or even drones dispatching
family members, our customers, and the passengers who spare parts in the future. It’s all about connectivity and we
use Schindler elevators and escalators continues to have are confident to reach our goal ‘Reduce CO2 intensity of
the highest priority. Our goal is to have zero fatalities. our global vehicle fleet by 25% compared to 2017’ by 2022.
Regrettably, last year we lost one Schindler employee and
five subcontractors. This is unacceptable. To prevent any
recurrences and foster a “safety first” culture, we are devel-
oping behavioral science-based, awareness campaigns and
dedicated safety workshops for our employees in the field.
We also analyze each accident and build on the findings
for further trainings and measures.
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Introduction
Table of contents
Setting the scene:
an external perspective
08
About Schindler
10
A forward-looking
perspective
11
Salesforce Tower
San Francisco, USA
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Setting the scene: an external perspective
Towards high-density, urban demand for materials, land, and labor. Environments
worldwide were not only mined but completely restructured
There is widespread scientific and policy consensus that
up-building remains a fundamental principle for sustainable
low-footprint cities to meet those demands. cities – for example, the Sustainable Development Goals
(SDGs), the Paris Agreement (United Nations Convention
Now, with the threat of climate change looming, a grow- on Climate Change), and the New Urban Agenda (Habitat
Prof. Dr Stephen Cairns
ing multidisciplinary scientific consortium is warning that III). Taken literally, building up can support higher popula-
Director of the Future Cities Lab (FCL), Singapore future cities built following this old logic will generate tion densities, and higher densities bring many benefits.
and Principal Investigator of Agropolitan Territories
of Monsoon Asia resource demands that exceed the biophysical limits of the These include the convenience of diverse and co-located
planet several times over. services, the clustering of complementary jobs, the energy
efficiencies of proximate consumers and reduction of
The radical city-building processes Accommodating unprecedented urban population growth, travel demand, and the intensification of urban experi-
while repairing environmental degradation, reducing ence. For economists, higher density means better market
triggered by the Industrial Revolution greenhouse gas emissions, and mitigating climate change, integration.
in nineteenth-century Europe and the is the fundamental challenge for city builders today. What
are the appropriate forms of analysis, planning, and fore-
United States have impacted all cities sight needed? How could contemporary cities be retrofit-
ever since. In his account of those ted and adapted? How should future cities be constructed?
processes, the great urban historian How might architects, planners, geographers, policy-
makers, firms, and communities inject their design,
and critic Lewis Mumford identified The first related to the integration of diversifying social and envisioning, restorative, and realization skills? In short, What does the Only half the world‘s
population has
two that proved to be especially economic functions into the city fabric. He called this pro- how might we contribute to what UN Secretary-General corresponding convenient access to
cess “up-building.” The second involved the environmentally António Guterres called the emerging “groundswell of
significant. destructive mining of raw materials needed to construct climate action.” One approach is to reform unsustainable SDG say? public transport
the city fabric – a process he described as “un-building.” city-building around a framework for high-density, Make cities
low-footprint cities. 50%
Up-building the city and un-building the environment and human no access
were, for Mumford, two sides of the same coin. They settlements
formed such a rational, “natural,” and, above all, profitable One approach is to
inclusive, safe, Over 90% of COVID-19
logic, that other more deliberative city-building processes, reform unsustainable cases are in urban areas
such as planning and design, were relegated to the margins. resilient, and
city-building around
sustainable
Today, some 200 years on, the legacy of this city-building a framework for high- 90%
urban
logic has not dimmed but intensified. Processes of imperi- density, low-footprint
alism and then globalization, digitalization, and rapid
urbanization, especially in Africa and Asia, through the cities.
twentieth- and early-twenty-first centuries, escalated
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Setting the scene: an external perspective
Furthermore, by curbing urban sprawl – or limiting the
physical footprint of buildings and roads – high-density cities It has been said that sustainable
can reduce development pressure on food-producing hin- future cities are likely to be built up
around elevators rather than cars.
Hong Kong is
terlands.
The possibility of high-density, low-footprint cities also
regarded as
Despite this consensus, realizing the benefits of high-
density cities is not so straightforward. In the literal sense, depends on how they are connected and interconnected.
It has been said that sustainable future cities are likely to
one of the
high-density cities are always low-footprint cities because
the buildings that constitute them accommodate people be built up around elevators rather than cars. Certainly,
without integrated nonmotorized transport choices and
high-density/
and activities by extending vertically and occupying rela-
tively small portions of land. The lens of the ecological efficient mass transit options, cities will continue to rely on
high-emissions private-car-based systems. Shared vertical,
high-liveability
footprint, which aims to “document the extent to which
human economies stay within the regenerative capacity of horizontal, and responsive transport systems within dense
urban fabrics are imperative.
cities.
the biosphere,” reveals the environmental impacts of build-
ings more forensically. This perspective generates new
pressing questions concerning the life cycle of high-density Shared vertical, horizontal, and
spaces, how they are constructed, serviced, connected, responsive transport systems within
and occupied over time. dense urban fabrics are imperative.
Scientists are increasingly confident that high-density cities These usually implicate high material and emission intensi- The framework for high-density, low-footprint cities neces-
can offer environmental advantages. The UNEP Interna- ties. How density shapes a city can depend on the kind of sarily embraces the realities of both physical and environ-
tional Resource Panel reports, for example, “a general pat- jobs and economy that it supports. The way high-density mental footprints of urban fabric. In one respect, it serves
“This perspective tern of high population density cities having lower urban spaces are occupied can depend on the various cultures of as a reminder that most urbanizing populations around the
generates new DMC per capita” (DMC, or domestic material consump- living that thrive there. world still need better cities – compact, socially inclusive,
tion, refers to the weight of materials used minus materials functionally mixed, energy-efficient and well-connected.
pressing questions
exported in an economy). For example, Singapore, London, Tokyo, and Hong Kong But just as important, it is also a call to creatively reengage
concerning the life cycle are regarded as high-density/high-liveability cities. Yet, the those peri-urban, rural, and wilderness territories that have
of high-density spaces, But current data is not definitive, and so many socio- form of density in each city is quite different, and the social, been residualized by the modern project of urbanization.
technical factors are not yet well understood. Building up cultural, and geographical character of liveability – such as
how they are References see page 49
involves assembling sophisticated materials and tech- tolerance for (and enjoyment of) crowding, life aspirations,
constructed, serviced, nologies for heating, cooling, managing waste, and com- place attachments, and forms of social solidarity – also dif-
connected, and municating. fers markedly across these cities.
occupied over time.”
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About Schindler
What we do Environmental footprint
– Carbon emissions 2020: 172 474 t CO2e
Schindler elevators, escalators, and moving walks transport
– Reducing carbon footprint of maintenance fleet
more than 1.5 billion of us up and down buildings and across Research & develop Market & sell
– 100% green electricity by 2025
transportation hubs every day. Together with our customers, (2020: 19%)
we help organize cities: by moving people and goods, and – Waste to landfill 2020: 2 777 tons
connecting vertical and horizontal transportation systems. (target: zero by 2023)
– Water use 2020: 541 395 m3
Schindler values: Creating value for the customer, Committed
to our people, Safety, Quality, Integrity and trust
Plan & design Values & governance Digitization Produce
What we depend on Value we create
Maintain & modernize Assemble & install
Customers Intangible assets
– More than 500 000 customers worldwide – Maintaining a brand as a reliable and
responsible partner since 1874 Customers Our people
People – R&D spending in 2020: CHF 204 million – Providing efficient and sustainable urban – Offering work opportunities, lifelong training,
mobility through products recognized as and promoting diversity & inclusion
– Over 66 000 employees – Maintenance portfolio
benchmarks for quality and safety
– Salaries and social benefits 2020:
– 40% Asia-Pacific, 22% Americas, 38% EMEA, – Expertise of employees and customer relationships
– Innovating digital solutions for smart buildings CHF 4 069 million paid – 80% of 2020 added
thereof 7% Switzerland
– 1 200 patent families – 20 000 patents and value
– Products installed in office buildings, airports,
– 1 529 829 hours of technical training patent applications worldwide
shopping centers/retail establishments, and
– Leading employee engagement
Materials & inputs Society specialty buildings Shareholders
(85% survey response rate) Tangible assets – Mainly ferrous and nonferrous materials, – Contributing to safe, sustainable living by
– Order intake: CHF 11 018 million – Dividends 2020: CHF 477 million
construction materials improving the quality of life for millions of
– 300 women in leadership training – Production sites in 8 countries
people in urban areas – Earnings per share: CHF 6.72
– Energy 2020:
– Over 1 000 branch offices in over 100 countries.
Suppliers – Fuel for the fleet: GWh 447 – Created added value in 2020: CHF 5 084 million – Planet
– Global R&D and digital hubs – Purchased electricity: MWh 98 791 shared with our stakeholders.
– Enabling densely populated cities with limited
– 46 000 suppliers, including 12 000 providing – District heat: MWh 12 091
– Employing over 66 000 people land to develop vertically
production materials
Collaborators – Voluntary turnover rate 2020: 2.8% – Making the existing building stock more energy-
– Global logistics network
– Co-innovation partners, NGOs, regulators,
Finances efficient by modernizing
– Tax expenses in 2020: CHF 219 million,
– Local subcontractors specifiers. standard-setters, trainers, universities – Net liquidity 2020: CHF 2.7 billion
effective global tax rate: 22.1% – Up to 30% improved energy efficiency with new
– Cost of materials: CHF 3 012 million modular product lines
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A forward-looking perspective
How technology This is an exciting time: more than ever, technology
is helping to usher in the cities of tomorrow.
Alongside these technological innovations, we are seeing
a paradigm shift in the way design and manufacturing is
can make cities more Building on eco-friendly materials “We need to keep
approached. The industry is moving towards a cradle-to-
cradle approach, where the environmental impact of the
sustainable First off, technological advancements will allow for the
development not only of greener building materials, but
people at the heart entire product life cycle is taken into consideration in the
design process – from sourcing through to production,
also of new manufacturing processes that have a better of the design of these use, and disposal. That means components are manufac-
Christian Studer, Head of New ecological footprint. One example is timber, which is new smart cities tured so that they are easily disassembled, with materials
increasingly popular as a building material. Timber is a separated for reuse and recycling.
Technologies at Schindler, shares and remember that
highly sustainable material. Much research has gone into
his view on the role of technologies how engineered timber can be designed and manufac- technology is just a Enhancing the energy efficiency of buildings
in enabling cities to prosper and tured to improve its fire safety performance, robustness, means to an end. In that The engergy efficiency of buildings once in operation is
and durability. This has resulted in this technology crossing another critical aspect in making cities more sustainable –
our customers to succeed in a low- regard, only market and there again, technology is key. System providers in
into the mid-rise building segment. Another example
carbon and inclusive future. would be traditional concrete – the most widely used man- offerings that prioritize sustainable cities will continue to strive for the highest
made material. Its production is highly energy-intensive. user experience and put energy efficiency – whether in the area of building insula-
Thanks to R&D investment, in recent years, greener alter- tion, the design of heating and cooling solutions, or the
the human in the center design of highly efficient permanent magnet-driven eleva-
natives have begun to emerge. This trend of eco-friendli-
ness through technology is set to continue. will be successful.” tor motors that feed braking energy back into thes grid.
Christian Studer
The Elevator & Escalator (E&E) industry, too, has been a Head of New Technologies at Schindler The crucial role of urban mobility systems
champion of sustainable innovation. Thanks to its elevator Urban mobility is, of course, a critical variable in the sus-
belt technology, which allows for light elevator cars and tainable city equation, with technology being at its core.
compact elevator motors, Schindler has one of the most Today’s city mobility systems have shown their limitations,
material-efficient systems in the market – and we are con- whether in terms of pollution, CO2 emissions, use of space,
tinuing to explore ways to further reduce materials use. or capacity. The quest for optimizing the use and interlink-
Among other things, we are looking to improve our use of age of existing urban mobility means the use of trains, sub-
eco-friendly materials – reducing our use of hazardous ways, tramways, elevators, moving walks, and cars contin-
materials to a strict minimum, while using recycled materi- ues. Mobility providers are also exploring the potential of
als when possible. autonomous driving, micro-mobility, e-mobility, and how
to integrate these seamlessly into a single digital platform
for a smooth user experience.
The E&E industry, too,
has been a champion of
sustainable innovation.
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A forward-looking perspective
Which technologies are key to enabling sustainable optimal way to optimize energy efficiency and traffic ca- For these reasons, cybersecurity needs to be front and With our Digital Twin, it will also soon be possible to simu-
smart cities – and how would you define a smart city? pacity. At the construction level, this higher traffic capacity center of the design, governance, and operation of a smart late at the planning stage the energy consumption of a
A smart city is a city where subsystems communicate to means also that fewer of these elevators are needed – city – it can’t be an afterthought. unit, to provide a breakdown of the material used in its
make intelligent decisions based on the data they share freeing up space for other use. manufacturing, and to estimate its CO2 footprint. This
with each other. We think of intelligent decisions as ones More importantly, we need to keep people at the heart of comprehensive overview can inform further design optimi-
that lead to greater user convenience and better overall In a few years from now, elevator technology will allow us the design of these new smart cities and remember that zations to increase the sustainability and energy efficiency
energy performance – ultimately helping to improve the to reduce peak energy demands, which will lead to clear technology is just a means to an end. In that regard, only of a project.
energy efficiency of a subsystem. environmental benefits. By integrating elevators into smart market offerings that prioritize user experience and put the
grids, we will be able to coordinate the energy demand of human in the center will be successful.
Digital Twin
A building’s smart heating and cooling system provides a elevators with the city’s other energy producers and con- Schindler’s Digital Twin accelerates the product development, enabling
every stage of the value chain of continuously improving quality and
classic example of smart devices working together for the sumers – resulting in a more stable grid and more efficient How important is collaboration between planners, elevators and escalators – from safety for passengers and technicians
planning to operation and mainte- alike. A next stage will include using
benefits of users and owners: while incorporating weather production and consumption of energy. architects, constructors, and developers in making nance – through digital modeling and Digital Twin for data insight collection
data, the heating and cooling system is able to interact digital technology work well for city dwellers? simulations. Virtual prototyping and and realizing the full potential of
analytics are applied in every phase of artificial intelligence.
autonomously with the building’s exterior blinds to let Connectivity in smart cities does not just allow for city sub- The design of an energy-efficient building is a complex
more or less sunlight and heat into the building. Another systems to work more efficiently together, it also allows us undertaking – and one that involves a lot of different
example is solar panels, which charge the battery of an to live – and work – more sustainably. In the elevator parties. That’s where Building Information Modeling
See website
electric car when the energy is not used in the building. industry, connectivity plays an increasingly important role, (BIM) and our Digital Twin will make a notable difference.
In general, in a smart city, energy producers and consumers with predictive maintenance and connected elevator units
act more intelligently together to save energy. being more common. That means some elements of Used in combination, these technologies provide a cen- More broadly speaking, city planning is critical in making
physical maintenance visits can be replaced with virtual tralized, place for providers, planners, architects, and cities not only sustainable but enjoyable to live in – cities
checks, reducing the need for field trips – allowing us to developers to exchange information, doing away with plan- with less traffic and more green spaces. Urban neighbor-
Schindler PORT
Schindler PORT has created a suite of
reduce the amount of CO2 emissions generated by our ning inefficiencies while drastically reducing mistakes on hoods and what is known as “slow traffics” – greener forms
mobile apps and services that enable service fleet. construction sites – saving money and time in the process. of transportation – will come to define the cities of tomor-
smoother traffic management in
buildings by reducing waiting times row, ones where work, leisure, and recreation are more
and congestion. Authorized users
and robots can navigate entire What are the key challenges associated with that integrated. This is best encapsulated in the 15-minute city
building complexes to personalized endeavor and the pitfalls that must be avoided? concept, whereby most human needs and many desires
destinations using only a smartphone, Building Information Modeling
badge, or simple IT interface. The hyperconnectivity and digitization of smart cities make (BIM) are all located within a 15-minute radius on foot or bike.
them an obvious target for cyber criminals. Indeed, there An intelligent technology based Schindler will be able to tap into its wealth of experience in
See website on 3-D modeling, BIM provides
are several examples in recent years where hackers have traceability and insights throughout mixed-use buildings and campuses to help shape the cities
the project life cycle – planning,
broken into critical systems of cities. Due to the intercon- design, construction, operation, of tomorrow.
and maintenance.
Elevator technology, too, can optimize a building’s energy nectivity of subsystems, a single hack of one such sub-
performance. Schindler PORT, our transit management systems, such as a freshwater treatment facility or a power
technology, for instance, can be linked with people’s travel plant, can have far-reaching consequences and could
See website
intentions in a building. With the knowledge of where potentially destabilize an entire city.
people are headed, elevator cars can be dispatched in an
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Roadmap 2022
Environmental, social, and gover- Global trends As we progress towards our
nance (ESG) matters are strategically
important to us. We have translated Considering our external environment, we took the following 2022 goals, we know that
our commitment to sustainability megatrends into account as they could impact our strategy learning from our successes
into a roadmap defining Schindler’s and performance: and challenges will be central
priority action areas. These represent to informing our next steps.
our most material topics. of European companies have
To further understand our impact
CO2
by 2050 75% 42% adopted at least one artificial
intelligence technology on society and the planet, we
The Board of Directors defines our strategic direction,
while our Global Sustainability Committee is chaired by 70% are updating our initial 2015
of people
our CEO. We have set accountability, time-bound targets, live in cities materiality analysis. Results will
and performance indicators on which we report progress
and receive external assurance. In 2020, for the first time, Urbanization Climate change Connectivity be available in 2021.
we included our ESG performance in our Annual Report. By 2050, the global proportion of To avoid the worst impacts of climate The construction industry is being
Our sustainability priorities were identified through
people living in cities is expected to change, the world needs to build a reshaped by new technology: Build- By identifying our impact and
reach 70%. In the face of rapid popu- net-zero global economy by 2050. ing Information Modeling (BIM) and
consultations with the Group Executive Committee and
lation growth and limited land supply, Cities are on the frontline of the cli- Digital Twin technology simplify dependencies along our entire
a selection of senior managers. A panel of independent
experts added their insights to ensure our roadmap cities will need to expand vertically. mate battle because they account for design and planning processes, while value chain, we will be able to
is focused on areas where we can make the biggest Super-tall buildings will become ever about 75% of global CO2 emissions. connected elevators and escalators
contribution. more common, further fueling de- Net-zero buildings must become the allow for better maintenance and
better manage our business and
mand for vertical mobility solutions. norm. management – ultimately resulting in deliver greater sustainable benefit
a more efficient use of resources. to all our stakeholders.
Circular economy Social impact Natural infrastructure
Current consumption and production Buildings play a role in social care. Natural ecosystems provide climate
patterns need to change. Resources Infrastructure needs to provide work- benefits. For example, green buildings
should be used and reused in an end- ing and living spaces that prioritize incorporate vegetation that can cap-
less loop. Architects, manufacturers, people’s comfort, safety, and quality ture carbon, retain water, or provide
and those operating in the construction of life, while catering to an aging natural cooling in the form of shade.
sector will be increasingly expected population. Buildings are more than Buildings will be increasingly expected
to apply cradle-to-cradle principles in simply infrastructure. They can offer to provide such benefits in the future.
their projects. an inclusive space where communi-
ties come together.
S C HI N DL E R CORP ORAT E RESP ON SIBILITY REPORT 2020H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 14
Roadmap 2022
We report our performance in Priorities and goals 2018 –2022
three categories:
Priorities Goals Achievements by end of 2020
Enhance safety Reduce the number of employee incidents
Environment
See page 16
and injuries expressed as Total Case Rate
(TCR) by 20% compared to 2017.
–24%
Goal surpassed
Goal: –20%
Society
See page 27 Attract diverse talents Increase the number of women in the
succession planning for leadership roles
Governance
22%
to 25% and promote an inclusive work 88% of goal reached
Goal: 25%
See page 36 culture.
Create value in communities Develop our vocational education
programs to support communities. 4 000 students in over 40 countries
Pioneer smart urban mobility Increase the number of passengers using
Schindler’s digitally connected elevators +200 million
and escalators to over half a billion people 40% of goal reached
Each section of this report begins with the relevant road- Goal: +500 million
map goals, which reflect our most material issues. per day.
Supporting data is included within each report section. Lower vehicle fleet emissions Reduce CO2 intensity of our global
Refer to the Global Reporting Initiative (GRI) index and the vehicle fleet by 25% compared to 2017 –14%
(t CO2e/CHF million). 56% of goal reached
Sustainablity Accounting Standards Board (SASB) sector- Goal: –25%
specific metrics at the end of this report.
See page 43 to quickly locate information and data.on GRI
See page 48 to quickly locate information and data.on SASB metrics Increase sustainability Perform independent sustainability
in the supply chain assessments of suppliers representing 31%
Further details on corporate governance can be found in 75% of our manufacturing purchases. 41% of goal reached
Goal: 75%
the Annual Report.
See Annual Report 2020
S C HI N DL E R CORP ORAT E RESP ON SIBILITY REPORT 2020H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 15
How we manage sustainability
Our approach is to integrate sustain-
Global Sustainability Governance Stakeholder engagement
ability into our business primarily
Feedback from our key stakeholders
through existing management sys- Board
level Board of Directors supports our decisions
tems, policies, and ongoing technical,
business, and leadership trainings. Supervisory and Chaired by the Chairman of the Board of
Directors, the committee sets the strategic
Strategy Committee
We look beyond our direct operations direction, shapes the company positions
and commitments, and reflects external
Employees Academia
demands and developments. The Board of
and engage with our value chain, Directors endorses the corporate responsi-
bility report.
–
–
Quarterly townhall meetings streamed live to all our locations
Biannual employee engagement survey
– Council of Tall Buildings and Urban Habitat (CTBUH)
– Innovation labs with EPFL, MIT, and other universities
while aiming to continually improve –
–
European Works Council and national trade unions
Training centers and global online learning solutions
– Ideation workshop with the Institute of Business
Sustainability
Silvio Napoli Erich Ammann Orit Gadiesh – COVID-19-specific safety, emotional, and financial – Supporting the Swiss Tech4Impact fund with other industry
our products and services. support measures partners to foster applied research on sustainability
– Multiple partnerships with technical colleges
Group
Our sustainability goals support the achievement of Executive Group Executive As the operational owner, the Group ExCo Architects, building developers,
level
implements the strategy and changes required Customers construction companies, Industry associations
Schindler’s corporate strategic targets. We have linked Committee (ExCo) to do business sustainably. operators, and owners
executive remuneration to progress on key sustainability – Partnering with building designers to find solutions to – Railsponsible initiative led by the railway industry supply chain
very specific needs – European Lift Association
performance indicators and defined clear accountabilities. Global Sustainability Chaired by the CEO, this committee is in – Promoting energy-efficient configurations to achieve – Other national industry associations
charge of leading and controlling progress
Our Global Sustainability Committee meets at least three Committee on sustainability. It defines operational
energy-efficient class A elevators – Green Building Councils
– More than 85 000 surveys conducted – Founding member of the International Building
targets, drives implementation and actions, – Net promoter score increased by six points
times a year and regularly reports to the Group and ensures integration across the business. – Responding to EcoVadis as demanded by 60+ global
Performance and Data Initiative
Executive Committee. In addition, as our Corporate customers and achieved Gold rating
Sustainability Office has a direct reporting line to the
Chairman of the Board of Directors, quarterly updates are Thomas Oetterli Urs Scheidegger Christian Schulz Passengers Shareholders
CEO CFO Operations
provided on projects’ progress, changes in the regulatory * In 2021, Sabine
– Safety collaboration projects worldwide
Siméon-Aissaoui and – Annual general meetings and quarterly results presentations
environment, and other sustainability-related topics. Tobias B. Staehelin – Tips and educational material for parents and children – Roadshows and other online engagement
succeeded Egbert on safe use of elevators and escalators – CDP to support investors fiduciary duty to manage climate
Weisshaar and David – Hygiene and social distancing solutions risks across portfolios
Robert Seakins Sabine Siméon- Karl-Heinz Bauer Tobias B. Staehelin * Clymo in the ExCo – MSCI, Sustainalytics, ISS Oekom and other ratings for
Field Quality Aissaoui* CTO Corporate HR as well as the Global transparent review of our sustainability management
& Excellence Escalators and Sustainability Com-
Supply Chain mittee.
Suppliers Global organizations
– COVID-19 resilience strategy collaboration – UN Global Compact and its Swiss network
Corporate Sustainability The CSO reports to the Chairman of the Board
– EcoVadis supplier sustainability assessments – The Conference Board as a founding member of
of Directors and engages with the Group
Office (CSO) ExCo. It advises, recommends, and makes – Discuss sustainability perfomance with vendor policy and the Responsible Sourcing Council
proposals on how to integrate sustainability in supplier evaluation – ISO: contributing to new standards
the business, including external commitments – Global Compact Network Switzerland supply chain initiative – Task Force on Climate-related Financial Disclosures
and target-setting. It is in charge of developing – Continuous dialogue including online workshops (TCFD) supporter
strategy, responding to ratings, and developing
the annual corporate responsibility report.
S C HI N DL E R CORP ORAT E RESP ON SIBILITY REPORT 2020H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 16
Environment
We promote resource efficiency We constantly review and strive to minimize our environ-
Table of contents
mental impact through the use of quality and environmental
and develop products and services management systems based on International Standards
Climate
that seek to continually reduce our Organization (ISO) norms. Life Cycle Assessments (LCA) of
17
our products are conducted to improve and create environ-
environmental impacts and those mental product declarations.
of our customers. Reducing the
We support our customers in meeting green building emissions of our
standards such as Leadership in Energy and Environmental vehicle fleet
Design (LEED), Building Research Establishment Environ- 19
mental Assessment Method (BREEAM), German Green
Building Standard (DGNB), Indian Green Building Council Promoting
(IGBC), and Singapore Green Building Council (SGBC). sustainability in
the supply chain
20
Pioneering smart
urban mobility
21
Manufacturing
and fulfillment
25
Residenze Hadid
City Life, Milan, Italy
S C HI N DL E R CORP ORAT E RESP ON SIBILITY REPORT 2020H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 17
Environment
Climate We support the goals of the Paris Agreement that limit
global temperature increases to well below 2 °C. To help
We want to support our customers in meeting their climate-
related commitments by developing the most sustainable
achieve this, we are using advanced digital technology to products and services while minimizing our own climate
To prevent the worst impacts of enhance the flow of people in cities and buildings, while impacts. We have set targets to reduce emissions from our
constantly improving the energy efficiency of our products, vehicle fleet, to purchase 100% green electricity, and to
climate change, the world needs manufacturing processes, and operations. We are trans- “CDP greatly values engage with a group of strategic suppliers on improving
to build a net-zero global economy forming how we deliver maintenance services and are the support of Schindler. their sustainability performance.
by 2050. engaging with logistics partners to optimize shipping of
our components. Through its 2020 Implementing the TCFD recommendations will help us
We believe elevators, escalators, and engage effectively with our investors and customers on
disclosure to CDP,
moving walks can make a positive In 2020, we started our journey to implement the recom- tackling climate change.
mendations of the Task Force on Climate-related Financial this company has
contribution by enabling efficient Disclosures (TCFD). We enhanced our governance and demonstrated its clear We have responded to the CDP climate questionnaire
mobility and the best use of space management of climate-related issues by establishing a
commitment to since 2015 and welcome its alignment with the TCFD
Global Sustainability Committee. A key decision was to recommendations.
within cities. We want to push transparency around its
launch a climate scenario analysis to better understand the
ourselves to look for ways to do resilience of our business model under 1.5 °C and “business- environmental impact,
more to tackle climate change. as-usual” scenarios.
risks, and opportunities,
100%
Target to purchase
The findings will shape our role in supporting a low-carbon which benefits
future and help us set ambitious carbon reduction goals shareholders,
aligned with the latest science. Action starts by being
customers, and
aware of our impact. Since 2015, our scope 1 and 2
greenhouse gas (GHG) emissions have been externally employees alike.”
assured, and we have extended assurance to our most rele-
vant scope 3 categories since 2019. We are aware of the
green electricity by 2025
data quality challenge involved and are working to address
this situation through better engagement with our supply
chain partners.
Maxfield Weiss
In 2020, we started our Director for Corporate Engagement
at CDP Europe
journey to full TCFD.
S C HI N DL E R CORP ORAT E RESP ON SIBILITY REPORT 2020H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 18
Environment
Overview of GHG emissions Scope 1 and 2 Scope 3 emissions have been calculated since 2015 using
We have reported our scope 1 and 2 emissions since 2011. t CO2e 2020 % 2019 % 2018 % purchasing data to evaluate our value chain and identify
We collect data on emissions through a network of more Buildings and processes 13 604 7.9 13 858 7.1 14 201 7.6 our most important scope 3 categories. The calculation
than 100 sustainability coordinators located across our Refrigerants 1 008 0.6 2’515 1.3 1 370 0.7 methodology (developed by the consulting firm Systain)
offices and production sites. Our reporting units represent Vehicles 115 068 66.7 129 151 65.8 128 941 68.9 is based on recognized scientific data sets (for example from
the Group’s material companies in alignment with our Total scope 1 129 680 75.2 145 524 74.2 144 512 77.2 the OECD or the World Bank) and complies with current
financial reporting structure. Purchased electricity 40 421 23.4 47 864 24.4 39 681 21.2 reporting standards such as the Greenhouse Gas Protocol
See Financial Statements 2020, pages 58–59 District heating 2 367 1.4 2’825 1.4 2 986 1.6 and CDP. We are currently refining the measurement of
Electricity for electric vehicles 6 0.0 5 0.0 1 0.0 our consolidated product use phase footprint for future
We measure and have our carbon footprint assured in Total scope 2 42 794 24.8 50’694 25.8 42 668 22.8 disclosure.
accordance with the GHG Protocol Corporate Accounting Total scope 1 and 2 172 474 100 196 218 100 187 180 100
and Reporting Standard. We report scope 2 emissions Carbon emissions from purchased goods and services
using both the location- and market-based methods as account for almost 90% of total scope 3 emissions, fol-
described in the GHG Protocol Scope 2 Guidance. Scope 3 lowed by upstream transportation and distribution. We are
See assurance statement, page 42 t CO2e 2020 % 2019 % working with transportation partners to develop and opti-
Purchased goods and services 1 610 743 89.9 1 652 696 87.4 mize the availability of logistics data. We have recently
In 2020, we discussed and agreed on measures to signifi- Upstream transportation and distribution 142 119 7.9 180 942 9.6 upgraded our teleconferencing capability, and after the
cantly reduce the carbon footprint of all our locations. Fuel- and energy-related activities 25 378 1.4 25 128 1.3 lifting of pandemic restrictions, our aim is to continue to
While we reduced our carbon emissions by 12% (compared Business travel 7 017 0.4 19 852 1.0 travel less for internal meetings and support working from
to 2019), we believe that to a large extent this was driven Capital goods 6 973 0.4 14 161 0.7 home to reduce commuting.
by global restrictions due to the pandemic. Most of our Waste generated in operations 794 0.0 752 0.0
agreed carbon-reduction measures will come into full effect Total scope 3 1 793 024 100 1 893 531 100 Scope 3 emissions have decreased by 5.3% compared to
only in the coming years. However, we will use learnings 2019, due to a reduction in our purchasing volume (–7.5%
from this year to sustain some of the reductions, such as compared to 2019). At the same time, we have increased
travel reductions through improved video conferencing. our engagement with suppliers to mutually drive forward
improvements in the future.
In the past years, several of our sites all over the world
39 507 40 713 39 126
have expanded their capacity to generate renewable GHG emissions trends relative to revenue
energy, for example by installing solar panels. By the end of Scope 1 and 2 Scope 3 t CO2e/CHF million
2020, Schindler generated more than 6200 MWh of elec- total t CO2e total t CO2e
2018
tricity from these installations, an increase of 42% com-
pared to 2019. More than2 319
93% of this
2 960
was used1 689
directly 172 474 1 793 024 2019
2020 11.9 11.5 10.8
17.2 17.4 16.2
on-site, with the rest fed directly into the public grid. 3.9 4.5 4.0
Total 41 826 43 673 40 816 1.4 1.5 1.4
2020 2019 2018
Buildings Vehicle Electricity and Total
fleet district heating
S C HI N DL E R CORP ORAT E RESP ON SIBILITY REPORT 2020H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 19
Environment
Reducing the
emissions of our
vehicle fleet
Our approach Mobility strategy in Germany
Schindler Germany, for example, has defined a mobility
strategy and roadmap to promote new mobility
options and accelerate fleet electrification. Employee
participation from the early stages of the project was
crucial to correctly assess needs and challenges. As a
Over 60% of our direct carbon result, Schindler Germany is not only installing charging
emissions come from the fleet of points at the company site but is also supporting
vehicles that support the installation Collaborate with our vehicle leasing
partners to choose low-emission models
Reduce the fleet size and implement sharing
concepts
Use public transport and e-bikes in cities employees to set up the necessary charging infrastruc-
ture at home. This way, technicians can start their
and servicing of our products. and use electric models where feasible
customer visits directly from home without first having
To reduce this impact, we are re- to go to the headquarters or even gas stations.
thinking the way we move people
The need to speed up
and goods. Invest in battery charging at our sites Optimize spare parts, materials, and tools
delivery to minimize trips
Increase efficient train driving
In 2020, the intensity of our fleet carbon footprint
We are continually searching for innovative ways to decreased by 14% (compared to our 2017 base year),
reduce the carbon intensity of our vehicle fleet. By in- in part due to the economic slowdown. We recognize
creasing the use of remote monitoring and adaptive the need to speed up our transition to a more sustain-
servicing of our products, we will further reduce the need able vehicle fleet, including tools and spare parts deliv-
Management leadership by switching Deploy digital tools to scale up adaptive Adopt crowd knowledge and digital
to travel. to more sustainable alternatives servicing and reduce the need for site visits expert systems
ery, and to improve product transportation and distri-
See page 20 bution. During 2020, our global large projects division
engaged with transport partners to identify more effi-
And when we have to visit sites, we carefully plan routes cient routes between factories, consolidation hubs,
to ensure our technicians avoid traffic and maximize their and project sites. We are looking at ways of reducing
time with customers. Our goal is to reduce the CO2 inten-
Reduce the need to travel the carbon footprint of transporting components by
sity of our global vehicle fleet by 25% compared to 2017. Optimize planning and logistics sea, air, and road, such as using biofuels to optimize
travel routes.
Transform the fleet
S C HI N DL E R CORP ORAT E RESP ON SIBILITY REPORT 2020H I G HL I G HT S PAVI N G T HE WAY INTRODUCTION ROAD M AP 2022 O U R R E P O RTI N G AR E AS : E N VI R O N M E N T I SO C I E TY I G OVE R NA N C E A PPEN D IX 20
Environment
Adaptive service Promoting sustainability Our approach:
Our service technicians perform a series of planned Service schedules integrate short-, medium- and in the supply chain Set clear requirements for suppliers through policies including our Vendor Policy,
and request declarations of hazardous substances for every new or redesigned
product in line with the EU REACH and RoHS Directives.
activities (maintenance or repair) and unplanned long-term tasks, combining them into one trip
activities (callbacks) throughout the year, which whenever possible. If emergencies arise, service
translates into a large number of field trips. These schedules are reshuffled and travel routes updated
Schindler relies on a global network Request suppliers to inform Schindler if they become aware of any potential
violation to the Vendor Policy.
trips are not only costly, they also account for a in real time. Service technicians have access to their of suppliers for production materials Use the EcoVadis platform to assess a selection of suppliers in line with our Road-
map 2022 targets. These represent our most important production
significant portion of Schindler’s carbon emissions. schedules on their smartphones, which helps them
to perform the tasks on time. and services. material suppliers from around the world.
For this reason, optimizing field trips is of paramount Social and environmental responsibility Assess the improvement of a supplier’s sustainability performance through
supplier scorecards, which also provide suppliers with an overview of strengths
importance. That’s the thinking behind Schindler’s By growing our range of connected units, we will
“Adaptive Service” approach, which allows for a continue to reduce the distance service technicians is at the heart of how we do business, and areas for improvement.
Make this information available during supplier assessment and purchasing
more efficient deployment of service technicians to need to travel. All our connected units, whether and this is reflected in our approach decisions, building a knowledge base integrated into our risk assessment tools.
the field. The end goal: make every field trip count. elevators, escalators, or moving walks, are monitored
remotely. In certain cases, our experts in the to supply chain management. Provide training and engagement to support suppliers on how to use EcoVadis.
At the center of this approach is a proprietary AI- Technical Operation Center are also able to solve Foster internal alignment by training buyers and driving supplier adherence
across the business. To date, 67% of the procurement managers responsible for
powered field service management software, which issues remo-tely. Substituting physical checks and In every market we operate at a regional level, helping our most significant operational sites have received such training. We are
processes job orders and generates optimal schedules interventions with remote inspections and setting up a Purchasing Academy that will address responsible procurement.
us to source as locally as possible. The final assembly of
and travel routes for our service technicians. The maintenance, where regulation permits, allows us to
our elevators and escalators takes place during installation
software considers variables such as travel time, limit our carbon footprint, while ensuring minimum
criticality of tasks, availability of spare parts, and disruption for our customers. at the construction site.
technicians’ qualifications, among others, to create In 2020, suppliers representing 31% of our manufacturing
the most efficient itineraries through dynamic We expect our external suppliers to maintain the highest purchases were assessed using EcoVadis. The decrease
planning. standards of professional conduct and integrity, in align- from the year before is explained by the fact that we adopted
ment with our values and policies. Our supplier requirements a stricter approach regarding suppliers as we were enter-
are embedded in our vendor policies, and supplier contracts ing year two in our supply chain target timeline. Starting in
include social and environmental conditions. Schindler’s 2020, we only include production material suppliers that
supplier approval process requires a systematic evaluation have completed a full EcoVadis assessment in our progress
of prospective suppliers and frequent requalification of report. Among them, more than 25% were responding for
existing partners, which is conducted as part of our supplier the very first time to an external sustainability assessment
At the center of this consistency audits. Schindler values suppliers with certified such as EcoVadis.
approach is a proprie- management systems such as ISO 9001, ISO 14001, and
tary AI-powered field ISO 45001. We have continued to engage externally with peers in
service management
2020 by being an active member of the Responsible
70%
software.
of our major production Sourcing Council and Railsponsible – initiatives to share
material suppliers best practice and learnings on supply chain ESG risk
are ISO 14001 certified. management and engagement.
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