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Annual Report 2023
Annual Report 2023
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5 About this report

This Nonfinancial Report 2023 was approved for publication by the Board of Directors of Schindler Holding Ltd. on February 14, 2024, and will be presented to the General Meeting of Shareholders for approval on March 19, 2024.

In addition to the information required by article 964b CO, the GRI Standards 2021 serve as a basis of preparation for the information disclosed in the Nonfinancial Report.

Aligning with Group financial reporting, the figures disclosed in section 4 as well as the figures disclosed elsewhere in this Nonfinancial Report were prepared based on the consolidation scope applied for the Group’s consolidated financial reporting (see section 3.1 of the Notes to Schindler’s Consolidated Financial Statements 2023). Changes in the consolidation scope due to acquisitions or divestments between 2020 and 2023 did not lead to any restatement of the figures disclosed in section 4 for scope 1 and 2 GHG emissions.

Schindler’s corporate carbon accounting (scope 1, 2 and 3) follows the guidelines of the Greenhouse Gas Protocol: a Corporate Accounting and Reporting Standard (revised edition, 2004). For the calculation of scope 2 emissions, Schindler uses the GHG Protocol Scope 2 Guidance. Emissions were calculated using the Sphera-curated GaBi v14 (12/2021) factors for scope 2 and the GHG Protocol/IEA (11/2021) factors for scope 1 except for refrigerants (HFCs), which were calculated using Defra v10.0 (09/2021) factors. For the calculation of scope 2 market-based emissions, the emission factors based on the data sources of the Association of Issuing Bodies (AIB) European residual mix and Green-e residual mix factors are applied. In order to report GHG emissions data in time for the publication of the annual report, the source data for GHG emissions calculation was collected for January until October 2023 and estimated for November and December 2023.

Scope 3 emissions cover the categories considered relevant for our science-based targets and are measured as follows:

  • Category 1: Purchased goods and services

In 2023, Schindler refined the emission calculation methodology for scope 3 category 1. The methodology changes were applied to Schindler’s 2020 (baseline), 2021, and 2022 and the emission figures were restated in this document. Schindler uses a hybrid model which combines spend-based and quantity-based methods. The spend-based method uses procurement spend data, inflation rates, and location-based emissions factors from Exiobase v. 3.8.2. The quantity-based method uses procurement quantity data and emissions factors from Ecoinvent v. 3.7.1 (for years 2020, 2021, and 2022) and Ecoinvent v. 3.9.1 (for year 2023).

The hybrid model excludes procurement data from dual brands. The emissions from dual brands are calculated based on spend data for production materials, average material prices, order intake data, environmental impacts related to packaging and auxiliary materials sourced from life cycle assessment (LCA) studies, and location-based emissions factors sourced from Ecoinvent v. 3.7.1 (for years 2020, 2021, and 2022) and Ecoinvent v. 3.9.1 (for year 2023), whenever location-based factors were available. Given that not all product lines have a LCA study, similar product lines are taken as proxies.

  • Category 4: Upstream transportation and distribution

Schindler revised the calculation approach for scope 3 category 4 emissions in 2023 and increased the granularity of the approach. The methodology changes were applied to Schindler’s 2020 (baseline), 2021, and 2022, and the emission figures were restated in this document. The model is based on procurement spend data and inflation rates. The emissions are calculated by applying location-based emissions factors from Exiobase v. 3.8.2.

  • Category 6: Business travel

Schindler applies a model based on procurement spend data taking into account inflation effects. The emissions are calculated by applying location-based emissions factors from Exiobase v. 3.8.2. As the calculation approach for scope 3 category 6 was refined and based on more granular data, the change was applied to Schindler’s 2020 (baseline), 2021, and 2022, and the emission figures were restated in this document.

  • Category 7: Employee commuting

Schindler uses an average-data method, which involves estimating emissions from employee commuting based on average national data on commuting patterns.

  • Category 11: Use of sold products

The weighted annual energy consumption is calculated by region based on the share of products sold per energy class each year (A to D for elevator products, A++++ to B for escalator products), as defined in the relevant ISO standards for elevators and escalators. For the calculation of the emissions, the annual weighted energy consumption is multiplied by the expected lifetime of the products, the order intake values and the zone-specific emission factors. The emissions factors are sourced from Ecoinvent v. 3.7.1 (for years 2020, 2021, and 2022) and Ecoinvent v. 3.9.1 (for year 2023).

  • Category 12: End-of-life treatment of sold products

Schindler calculates the emissions based on order intake data and environmental impacts related to waste processing and waste disposal sourced from life cycle assessment (LCA) studies. Given that not all product lines have a LCA study, similar product lines are taken as proxies.

Further metrics and targets disclosed in the report were defined as follows:

  • The frequency rate is calculated by multiplying the total number of lost work day cases for the year by 1’000’000, divided by the total number of working hours

  • Senior leadership refers to the individuals who hold top-level positions within the organization and are responsible for making critical decisions that impact the overall direction, strategy, and success of the company. Internally this is defined following an analytical evaluation of the position and its impact for the company, and is designated as Global Senior Management in our HR position ranking scale

  • A connected unit is an elevator, escalator or a moving walk which is maintained by Schindler and connected with a data gateway to Schindler’s IoT (Internet of Things) ecosystem

  • Vocational education and training students refer to individuals who hold an apprenticeship or traineeship contract within the organization, which can be either in technical or support functions

  • The baseline for the top 100 production material factory suppliers is based on spend data as of December 31, 2023. The average EcoVadis assessment score is calculated as a weighted average score based on spend

PricewaterhouseCoopers AG has performed assurance procedures to provide limited assurance on a selection of key performance indicators, including Schindler’s carbon footprint (see Independent practitioner’s limited assurance report).