Milestones

Regaining altitude – this could have been our motto in 2022.

Making buildings more efficient, keeping cities moving, enriching quality of life in urban environments – we continued to fulfil our mission last year, even when it felt at times that the world around us was stumbling.

Indeed, the year 2022 didn’t pull any punches. We had to navigate through a perfect storm, the damages of which are still being felt: the never-ending pandemic, supply chain disruptions, rising inflation, and to top it all, the return of war in Europe.

Besides these external challenges, Schindler had to deal with a number of internal issues related to the production of the new modular elevator platform, prompting us to introduce a leaner, more agile operating model, better suited to the new reality of accelerated changes across the spectrum.

All these disruptions occurred at a time when the contours of the economy are being redrawn by the simultaneous impact of digitalization and climate change. Together, these transformative forces require us to rethink how we function as a society.

It’s against this evolving backdrop that we continue to operate our business, serve our customers and care for our employees, day after day. While doing so, we continue to prepare our business for the next generations, progressing on our journey to embed sustainability across all our operations. This commitment was formalized with the approval of our 2040 Net-zero Road Map by the Science Based Targets initiative (SBTi).

Beyond our own commitment, we actively supported our customers in reaching their own sustainability targets, by providing them with innovative products and services. A prime example, combining digital services and an electric fleet, is the “green elevator maintenance” solution Schindler introduced in Germany, which translates into a reduction of carbon emissions of up to 99.5% compared to a more traditional maintenance approach, as certified by TÜV Rheinland. Innovations like these make a real difference because cities are at the forefront of the fight against climate change, accounting for more than 70% of global carbon emissions.

“The contours of the economy are being redrawn by the transformative forces of digitalization and climate change, requiring us to rethink how we function as a society.”

Contrary to common belief, the key difference will not be made by new buildings that are more sustainable. The most pressing issue is to find solutions for the existing built infrastructure, considering that 80% of the buildings that will be standing in 2050 already exist today. Surprisingly, fewer than 1% of these buildings comply with the requirements of the Paris Climate Agreement. Our commitment to our customers is to assist them in upgrading their portfolio to avoid their built assets becoming stranded, thereby supporting their fight against climate change.

“We continue to prepare our business for the next generations, progressing on our journey to embed sustainability across all our operations.”

Yet it remains that the most sustainable building is the one that does not have to be built. And just as the carbon footprint of a building decreases over time, businesses have the opportunity to become more sustainable with each passing year.

Indeed, sustainability is also about resilience. While the average life span of a business has been on a steady decline for decades – today’s S&P 500 companies last under 20 years, down from 35 in the late 1970s – we can be proud of our 148-year history. Beyond technology and processes, the longevity stems from the commitment of our shareholders, our entrepreneurial spirit, and our family culture, which, combined, have carried our company across five generations.

While taking this opportunity to extend my gratitude to our customers for entrusting us with their business, I would also like to thank our investors for their trust and support. This message would not be complete without an expression of appreciation to the Schindler employees around the world, who have this year yet again shown their unwavering dedication, even amidst the most challenging circumstances.

Silvio Napoli

Chairman of the Board of Directors and CEO