How we manage sustainability

Together with our customers, we drive sustainable, smart urban mobility and contribute to making cities more people-­centric, greener, and more inclusive, enhancing the quality of life for current and future generations.

Sustainability is integral to our way of doing business, defining how we work – creating value for all over the long term.

Managing our most significant impacts on the economy, the environment, and people is strategically important to our long-term success. We focus on integrating sustainability in our business through our corporate policies, management systems, technical and leadership trainings, and engagement with our stakeholders. We look beyond our direct operations and engage with our suppliers, while aiming to continually improve our solutions for vertical mobility and transit management.

As part of our 2030 Sustainability Road Map, we are developing mid- and long-term goals for each of our material topics, with clearly defined accountabilities. We report our social and environmental performance annually and are further integrating our ESG and financial data control and management systems.

Further information can be found at group.schindler.com

Resilient supply chain management and procurement

We rely on a global network of suppliers for production materials and services, including a global logistics network. In every market, we operate as much as possible at a regional level, which helps us to source closer to our supply chain network.

Sustainability considerations are central to building efficient and resilient supply chains, minimizing risks, and promoting business continuity. Supply chains are exposed to many external risk factors. Extreme weather conditions, climate change, pandemics, raw material shortages, and geopolitical unrest can severely disrupt logistics, impair reliability, and threaten the security of supply. In the construction sector, supply chain disruptions can delay projects and put critical infrastructure out of service. By improving supply chain management systems, we can increase the efficiency of production processes and remain competitive in the long term, while also meeting increasing customer requirements.

Our commitment to improving sustainability in the supply chain is embedded across our corporate environment, quality, and vendor policies. In addition, social, environmental, and ethical business practice conditions are integrated into our contracts, and we request declarations of hazardous substances for every new or redesigned product in line with the EU REACH Regulation and RoHS Directive. By the end of 2022, all our global key production material suppliers had signed the Vendor Policy. Compliance risks are addressed during the selection process as part of our supplier qualification audits, while compliance evaluation is part of our supplier consistency audits.

In 2022, we revised our supplier requirements to align with increased regulatory standards and guidance on responsible business conduct. Our new Responsible Sourcing Policy defines criteria to be used in our supplier selection and evaluation process and replaces our previous Vendor Policy. It is founded on internationally recognized guidelines, such as the principles of the United Nations Global Compact, the International Labor Organization (ILO) conventions, the ISO management standards, and other issue-specific standards. Topics covered by the policy include compliance with human rights, the exclusion of child and forced labor, safeguarding labor and social standards, antidiscrimination, and anti-corruption policies, and protecting the environment.

We actively promote sustainability in our supply chain. To achieve this, we set a target in 2018 to perform independent sustainability assessments for 75% of our manufacturing purchases by 2022 using the EcoVadis platform. These purchases are sourced from our most important production material suppliers around the world, which supply car systems, door systems, machines, as well as mechanical and electromechanical components. At the end of 2022, suppliers representing 79% of our manufacturing purchases were assessed. The EcoVadis system provides supplier scorecards that enable us to assess the improvement of a supplier’s sustainability performance. We will use these results to engage and align global tier 1 suppliers with Schindler’s scope 3 science-based 2030 target.

Sustainability data is integrated into our global supplier relationship management processes and tools, together with spend and quality data to support risk assessments, procurement decisions, and collaboration with suppliers. Our global procurement performance dashboard facilitates engagement on the implementation of corrective action plans.

In 2023, our new global Procurement Center of Excellence will further embed sustainability into our strategy and processes by aligning, coordinating, and standardizing procurement practices on a global scale.

In 2022, 65% of our major production material suppliers were ISO 14001 certified, and 83% were ISO 9001 certified.

Climate

Green buildings are a global priority for smart and sustainable cities. We work with our customers to help them meet their environmental goals and engage with other players in the built environment to drive change across our entire value chain in collaboration with the whole sector. Our goal is to develop the most sustainable products and services, while minimizing our own climate impacts.

Our products – elevators, escalators, moving walks, and related software and services – can play an important role in the required urban transformations by enabling efficient vertical mobility and creating the best use of space in cities. We transport more than 1.5 billion people up and down buildings and across transportation hubs every day.

In 2021, we were the first global E&E company to declare the commitment to achieve net zero by 2040, with mid-term 2030 targets covering scope 1, 2, and 3 emissions against a 2020 baseline aligned to a 1.5°C pathway. These were formally approved in 2022 by the Science Based Targets initiative (SBTi), a multi-stakeholder climate initiative.

We have also committed to shorter-term targets: fully transitioning to renewable electricity by 2025 when joining RE100 in 2021; the global environmental initiative led by the Climate Group in partnership with CDP; and implementing an ISO 50001 management system for all major production sites by 2025.

Reducing impacts from production

Decarbonizing our manufacturing processes is essential to tackle climate change. To achieve this goal, we continuously streamline our packaging materials, as well as our upstream and downstream transportation processes. This elimination of surplus materials, combined with our modular packaging approach, aims to achieve a higher truck loading capacity.

To track and optimize the impact of all these measures, we further improved our carbon footprint measurement tool, deployed in 2021. In 2022, we expanded the scope of the tool to include all transportation means in our logistics between tier 1 suppliers, including factories and end customers. To further strengthen and continuously monitor our efforts to reduce our impact from production, we are implementing a systematic energy management system. By 2025, we plan for all major production sites to be ISO 50001 certified.

Transitioning to renewable electricity

In 2022, 90% of our electricity for all production sites came from renewable energy sources. We reached this through several measures: on-site generation of renewable electricity, selection of green electricity products from local utilities, entering long-term power-purchasing agreements, and the purchase of energy attribute certificates. In parallel, we continue to invest in the installation of solar panels on our buildings’ roofs.

In 2022, 90% of our electricity was sourced from renewable energy.

Reducing of impact from maintenance and service

Our approach to decreasing the impact of maintenance and service is to reduce the need to travel, optimize planning and logistics, and transform the fleet. By deploying remote recovery and adaptive maintenance, we make every trip count. Through connectivity, we can perform digital “health checks” (function checks) and resolve breakdowns remotely. Furthermore, if a technician needs to be dispatched on-site, we can confirm if and which components are defective beforehand, thereby reducing the number of unnecessary trips. In 2022, more than 25% of our maintained portfolio was cloud connected, and we have extended these capabilities to non-Schindler elevators. In Germany, we launched a low-carbon maintenance model. As a result, the carbon footprint of a digital service contract using electric vehicles has been reduced by 99.5% compared to a traditional on-site visit, as certified by TÜV Rheinland, an independent certification company.

In addition to increasing our connectivity, we are pushing the electrification of our fleet and investing in on-site charging stations. As part of our 2022 Sustainability Road Map we had set ourselves the target to reduce our fleet’s carbon intensity by 25% by 2022 compared to a 2017 base year, contributing to the transport sector’s imperative need for decarbonization. In 2022, we achieved 24.7% due to the late delivery of already ordered electric vehicles.

Promoting sustainable building design through technology

Promoting environmentally preferable products

Through Environmental Product Declarations (EPDs) and Green Labels, we are further increasing transparency about our products to support our customers in making sustainable decisions. We focus on local production for our local markets and customers. To uphold this commitment, we decided to create EPDs for each individual sourcing zone. Our EPDs provide transparent and third-party-verified information on the environmental impact of a product throughout its life cycle. Recognized by most green building certification schemes, including LEED, DGNB, and BREEAM, our EPDs can help our customers receive credits for their building certification projects. In addition to our EPDs, a large number of our products are certified in accordance with green labels such as the Green Mark Product Certification in Singapore.

Improving energy efficiency

Growing demand for green building standards presents an opportunity to innovate and develop the most energy-efficient products possible, helping our customers shrink the carbon footprint of their buildings. Schindler’s latest product generation improves energy efficiency by up to 30% compared to previous products and can achieve energy class A according to ISO 25745.

In 2022, we introduced Schindler KERS (Kinetic Energy Recovery System), which optimizes efficiency and energy consumption in older elevator systems from almost all manufacturers. KERS ensures that energy generated by elevators during the braking process is not released as heat but stored temporarily. The stored energy is used for the next elevator ride.

Improving transit management and supporting mixed-use buildings

With Schindler PORT 4D, our leading transit management solution, we make buildings more appealing, eco-friendly, and easy to access. It is the first holistic building traffic management system that enables seamless and secure transportation and repurposing of buildings, while reducing the energy consumption of an elevator group by up to 40%. Additionally, Schindler’s broad range of mobility solutions is ideal for mixed-use buildings. Our solutions balance the needs of both building owners and tenants by optimizing traffic flow through the building.

Investing in digital solutions for real estate management

We’ve been the sole investor of Berlin-­based start-up BuildingMinds since it was founded in 2019. BuildingMinds develops digital solutions that enable our customers to manage their real estate portfolios.

BuildingMinds provides a wide range of services, from energy monitoring and physical climate risk analysis to digital twins and environmental, social and governance (ESG) reporting. The platform offers a multitude of solutions for reducing risk and protecting the value of real estate.

Building resilient supply chain management and procurement

We are committed to increasing sustainability and environmental awareness in our supply chain. Therefore, we implemented an ongoing relationship and performance management system for suppliers. Through independent sustainability assessments of our suppliers, we receive regular updates on their environmental performance, and can intervene if necessary.

Employees

Our employees are the cornerstone of our success. We want to attract and retain highly skilled people for our company and support them in their development. We cultivate an inclusive work environment where diverse people feel empowered to come together as they are to do their best work, and we promote a safety culture.

The Schindler Employee Engagement Survey is our communication channel, through which we get feedback from our employees on how they experience Schindler as an employer. Conducted globally every two years, it is a crucial component of our employee engagement process. In 2022, 87% of our employees participated in the survey. In addition, we have evolved our employee interaction tools by offering more regular, targeted, and locally relevant surveys to better capture and understand their employee experience and involve them in shaping their working environment. Jardine Schindler Group has been certified as a Best Place to Work across its Asian markets for the period 2022–2023. Schindler has also been recognized as a Top Employer 2022 in Europe by the Top Employers Institute.

Learning, development, and leadership

Investing in our people’s development and careers is fundamental to maintaining quality and leadership in technological innovation, while creating exceptional value for our customers.

This is why we provide employees with access to an extensive range of tools and resources on our online career center, a platform dedicated to growth and development in Schindler. Digital learning, cross-functional mentoring programs, job rotations, international mobility, and on-the-job assignments are on offer. Through our online learning library, our employees can explore thousands of courses in different learning formats, from videos to courses and audiobooks.

Our commitment to people development has garnered international recognition annually since 2019 from the Brandon Hall Group for various internal programs. Their annual Human Capital Management (HCM) Excellence Awards recognize organizations that have successfully deployed programs, strategies, processes, systems, trainings, and tools that have achieved measurable results. In 2022, we won three awards and were duly recognized in the category “Future of Work.” We also support our colleagues in achieving their career aspirations by offering annual development reviews. In 2022, the completion rate of such individual development plans was 90% (2021: 94%; 2020: 38%). All our employees receive a performance review at least once per year.

Leadership development is a key priority. Our leadership training programs offer a virtual and blended learning experience developed in collaboration with Group companies and business functions to combine local expertise with market and customer intelligence. Our holistic learning approach offers courses throughout the year, such as live webinars, eLearning modules, videos, and opportunities to interact and learn from peers and trainers. Since 2017, we have promoted diversity in leadership through a dedicated ten-month coaching-based program involving women from across all markets.

Safety and health

Safety is a core value at Schindler and our aspiration is zero incidents. We have a responsibility to our almost 70 000 employees. Our safety culture is rooted in accountable leadership and a rigorous policy framework together with regular science-based behavioral and technical trainings.

Our employees

All Group companies and subcontractors have to follow our Employee Safety and Health Policy. It focuses on four areas constituting the foundation of our occupational health and safety management system and programs: product improvement, methods and tools, mindset and behavior, and risk and incident management.

Our service technicians and fitters are encouraged to voice concerns and suggest improvements through specific dedicated channels. Employees can report on-site observations through mobile and offline apps and can share ideas on incident prevention by addressing these to a dedicated contact.

We do not tolerate any breaches to safety rules. Compliance with procedures is mandatory and monitored through systematic field evaluations reported to the Group. Technical compliance and safety audits are integrated in the Group audits with a defined calendar every year.

Our technical training uses acknowledged, certified experts ensuring our fitters and service technicians receive regular trainings on the latest skills required to install and maintain our products safely. This includes theory and hands-on practical training in 230 elevator shafts and escalators specially set up for learning. Coordinated by training centers around the world, the programs are supervised by the Head of Field Quality and Excellence at Group and country level. Employees are encouraged to improve their level of certification, and we provide additional, targeted training to meet specific needs around the world. In 2022, field employees received an average of 5.1 days of technical training (2021: 4.2 days). In addition, our Behavior Lab focuses on strengthening our safety culture through behavior change interventions targeting employees, subcontractors, and users.

We monitor our progress by tracking our Total Case Rate (TCR). This widely accepted indicator measures the number of all work-related injuries per million working hours. In 2022, our TCR was 2.7 – a 46% improvement from our 2017 baseline (5.0). Our Lost Time Incident Rate (LTIR) continued to improve from our baseline year with 1.3 this year compared to 2.2 in 2017. This result was overshadowed by the loss of five Schindler employees and two subcontracted workers, reinforcing the urgency to further enforce our lifesaver rules and on-site supervision.

Inclusion and diversity

We believe that our work environment must be inclusive and equitable, welcoming people of all backgrounds and empowering them to achieve great things. We are committed to ensuring equal opportunities and equitable treatment, as well as providing a safe and respectful work and business environment that is free of discrimination and harassment (D&H).

As a responsible employer, we recognize that having an inclusive and diverse workforce is a source of strength. It contributes to an innovative and engaging work environment that opens opportunities for us to better serve our customers and unlock competitive advantages. Being inclusive and diverse helps us attract and retain talent, thus supporting our future success. This makes equity and inclusion an important topic for our shareholders and stakeholders alike.

Our global Policy against Discrimination and Harassment defines discrimination, harassment, sexual harassment, bullying, and retaliation as unacceptable behaviors in the workplace. Our approach is based on prevention, detection, and response.

Inclusion and Diversity (I&D) is driven from the top. The Group Executive Committee reviews our progress and works to align and prioritize our efforts globally. Our Global I&D Leads network is the operational arm working to implement the six-pronged strategy decided by our Supervisory and Strategy Committee. The strategy focuses on reinforcing inclusive behaviors, especially among our leaders, improved sponsoring and development of a diverse talent pool, as well as engaging employee networks to identify and address inclusion challenges.

To ensure all understand the expectations set down in our global Policy against D&H, our gamified eLearning module has been assigned to current and new employees. In addition, we have integrated inclusive leadership modules into our leadership development programs and launched a specific inclusive leadership program called “The Power of Inclusion,” which focuses on putting inclusive actions into practice.

In line with our Valuable 500 Commitment, a global business collective made up of 500 CEOs and their companies innovating for disability inclusion, we continued to support disabilities inclusion through specific inclusion programs in our factories in Switzerland and Slovakia and in our call center in Spain.

As a signatory to the UN Women’s Empowerment Principles (WEPs), we are committed to promoting gender equality. Back in 2017, we set ourselves the target to increase the number of women in our succession planning for leadership roles to 25% by 2022. We met our target one year ahead of our self-imposed deadline. Our journey is far from over, and we still need to increase the number of women in key leadership positions. We currently have 18% of key positions held by women; our goal is to reach 30% by 2030.

In 2022, for the second year in a row, we were recognized by Forbes as one of the Top 300 Female-Friendly Companies.

Human Rights

Our goal is to respect human rights and to comply with regulations related to human rights due diligence (HRDD) in our entire business operations. By conducting a HRDD, we aim to proactively assess, identify, prevent, and mitigate actual and potential adverse human rights impacts across our whole value chain. Since 2021 we have been analyzing the extent to which our current policies, processes, and practices met the requirements outlined in international frameworks such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. In parallel, we conducted a human rights risk assessment to identify our salient human rights issues. Based on this analysis, we developed our Human Rights Policy, which outlines our continuous commitment to upholding human rights.

Our new Schindler Human Rights Policy was approved by the Board of Directors. The policy is guided by international human rights frameworks, and in alignment with the Swiss Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labor including the following:

• United Nations Guiding Principles on Business and Human Rights (UNGPs)
• Universal Declaration of Human Rights (UDHR)
• International Covenant on Civil and Political Rights
• International Covenant on Economic, Social and Cultural Rights
• Core Labor Conventions of the International Labor Organization (ILO)
• OECD Guidelines for Multinational Enterprises