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Sustainability Report

Innovative products and solutions

Even good things can be improved. The ongoing development and optimisation of products and solutions have a high priority at Arbonia. Our focus is on market-oriented and energy-saving offers as well as green technologies. The companies also conserve valuable resources in production and sales, while focusing on uncompromising quality at the same time.

Heating, Ventilation and Air Conditioning Division

Meeting high customer demands

Securing and expanding the market position through innovation is the declared objective of the HVAC Division. The task is challenging, as customers are making greater and greater demands on products and their performance. To meet these demands, the HVAC Division optimises the use of resources and enhances customer benefits. Solid project management as well as a systematic, goal-oriented product development promise success. When possible, the division protects its developments by applying for industrial property rights.

Award-winning products eligible for subsidies

The division works hard to create a positive public perception. Due to the COVID-19 pandemic, almost no national or international trade fairs took place during the reporting year, which meant that an important element for the market launch of new products and for customer care was missing. As face-to-face customer visits were not an option either at times, digital communication media became fundamentally more important. These include a variety of digital tools tailored to the respective customer group, from webinars on various topics (e.g. indoor air quality) to individualised homepages of the respective brands to special apps in an augmented reality format as product configurators.

In 2020, the products of the HVAC Division were also able to score in design competitions and were awarded prizes such as the Best of SHK Award (sanitary, heating, and air conditioning). The division is also developing more and more products that are suitable for both new buildings as well as renovations and that benefit from subsidy programmes enacted by European governments to reduce CO2 emissions.

Continuous product optimisation

The division gains new impetus for innovations through trade fairs, technical literature, and further training of employees. Regular reports to the management as well as deadline and cost monitoring guarantee controlled and continuous product optimisation.

Key figures of innovative products and solutions: HVAC Division

2020

2019

Delta

Employees in Research & Development (FTE)

58

57

2%

Expenditure for research & development (TCHF)

8 986

9 145

−2%

Expenditure on research & development as a share of revenues

1.7%

1.6%

Share of net revenues from third parties with new products1

13.3%

13.4%

Share of investments in new revenue sources

43.9%

33.2%

1 New products are defined as products introduced during the last three years.

Sanitary Equipment Division

Picking up trends

Particularly due to the COVID-19 pandemic, there is a strong homing trend in society and thus an identifiable increasing willingness to invest in bathrooms as a feel-good space. The central task of the division is to meet these customer demands by expanding and optimising its products and, at the same time, to further expand and strengthen its market position due to the high demand.

The division is countering the increased cost pressure with a more efficient use of resources, such as optimised film-free packaging. The steady expansion of the services offered is also important for the continuous strengthening of customer relationships.

Using digital channels

In the reporting year, the Sanitary Equipment Division launched new products and product extensions. Since a physical presentation was not possible due to cancelled industry trade fairs such as the SHK Essen (D) and the IFH Nuremberg (D), it relied on other channels, especially digital ones. These included new product and assembly videos, a completely revised homepage, and digital training for sales representatives. The products of the Sanitary Equipment Division were once again successful at design competitions in the reporting year: Kermi and Koralle were pleased to receive prizes at the Universal Design Awards (Expert and Consumer Jury), the German Design Awards 2020, as well as the Iconic Award 2020, among others.

Optimisation with a system

The Sanitary Equipment Division gains new impetuses for product developments through in-depth market observation. Systematic project management and the associated deadline and cost control as well as regular reporting to the management guarantee the control of new developments.

Key figures of innovative products and solutions: Sanitary Equipment Division

2020

2019

Delta

Employees in Research & Development (FTE)

19

17

13%

Expenditure for research & development (TCHF)

1 685

1 930

−13%

Expenditure on research & development as a share of revenues

1.2%

1.3%

Share of net revenues from third parties with new products1

15.3%

20.3%

Share of investments in new revenue sources

40.2%

7.9%

1 New products are defined as products introduced during the last three years.

Windows Division

Innovations as competitive advantages

Product innovations are essential for the Windows Division because it operates in a very competitive environment. In addition to compliance with all relevant standards, the factors of "energy efficiency", "quality", and "price" define market success.

Promising new developments

EgoKiefer and Slovaktual impressed in 2020 with the newly launched flush-fitted secondary sashes in the "EgoAllround" and "Optim" systems. This product allows an increased proportion of glass and thereby improves the thermal insulation. The new vinyl and aluminium front doors developed by the division also have a 10% better heat transfer coefficient. This is achieved through an above-average construction depth and new, stronger infill variants. Furthermore, additional and ongoing optimisations of the production processes took place at the Wertbau site in Langenwetzendorf (D). Forklift transports could be almost completely replaced by a fully automatic buffer storage. Thanks to digital control, components reach employees directly.

Launching innovations even faster

The division wants to expand its market position in some markets, including the Czech Republic and Austria, and launch new products even faster in the future. While doing this, it ensures that innovations are nevertheless mature and fault-free in order to retain customer confidence. Thanks to a large dealer network, Slovaktual, for example, can quickly bring new developments to the customer. Windows that insulate even better remain a focus of development. For such windows, the frame plays a subordinate role. The decisive factor for a high thermal insulation is that the glass covers as large an area as possible. Therefore, the frame will become even narrower in future window generations. With the newly established in-house insulating glass production in Pravenec (SK), the division has the necessary flexibility to bring innovations to the market quickly. At the same time, efficiency and profitability have to be right. In order to combine this, the market is constantly monitored and customer wishes are ascertained through surveys and personal discussions. The close cooperation with suppliers also leads to new product developments and solutions, such as the sealing system and the plastic joints of the new wood/aluminium window generation.

Key figures of innovative products and solutions: Windows Division

2020

2019

Delta

Employees in Research & Development (FTE)

29

25

14%

Expenditure for research & development (TCHF)

3 315

3 480

−5%

Expenditure on research & development as a share of revenues

0.5%

1.0%

Share of net revenues from third parties with new products1

37.8%

20.4%

Share of investments in new revenue sources

54.4%

45.0%

1 New products are defined as products introduced during the last three years.

Doors Division

Inspiring customers and partners with innovations

With its innovative products and solutions, the Doors Division repeatedly achieves a unique selling point and gains market shares. The focus is on technical advances as well as on innovative design that not only satisfies residents but also the installers of the products. Examples of this include the new residential line, the new fire protection approval of RWD Schlatter, or the premium edge with zero joint technology from Prüm and Garant launched in 2019. A particular technical innovation resulted from the minority share in the Berlin (D) property technology company KIWI.KI GmbH. Their "SmartDOOR" is a door from Prüm and Garant that is equipped with digital access technology from KIWI not visible from the outside. Thanks to the digital access system, housing companies can digitise their key property managers and increase convenience for their tenants. Managers and owners can adapt access rights online in real time and therefore no longer have to meet in person to hand over keys.

Using materials efficiently and avoiding errors

It is well known that product innovations should be resource-efficient and economical. RWD Schlatter achieved this goal in 2020, for example, by standardising certain components that can now be used in all doors. Prüm and Garant were also able to reduce the use of materials and ensure more efficient processes through uniform blank structures. Lower material stocks and the minimisation of waste make production more efficient in terms of lean management. In 2020, RWD Schlatter also improved the data management in their production system to further reduce mix-ups or incorrect orders. The challenge of developing high-quality products with low material input will occupy the division in the coming years as well. Regular customer surveys ensure that buyers' demands are taken into account in the innovation process. The companies of the division are also involved in shaping future standards and regulations through active participation in committees and bodies. This allows new requirements to be taken into account at an early stage in the development process.

Key figures of innovative products and solutions: Doors Division

2020

2019

Delta

Employees in Research & Development (FTE)

25

22

14%

Expenditure for research & development (TCHF)

2 925

2 769

6%

Expenditure on research & development as a share of revenues

0.8%

0.8%

Share of net revenues from third parties with new products1

19.6%

15.0%

Share of investments in new revenue sources

56.3%

53.1%

1 New products are defined as products introduced during the last three years.

CO2 and energy

The responsible use of energy and the reduction of CO2 emissions are tasks that affect all areas of the company's work – from product development and manufacturing to transport and logistics. Arbonia correspondingly attaches great importance to these issues and is determined to make a significant contribution to climate protection and resource conservation. Increasing customer expectations regarding sustainability and growing legal requirements are also causing Arbonia to strengthen its commitment in these areas.

Energy consumption by energy source 2020

Almost 90 % of the energy consumption of Arbonia is covered by electricity, natural gas, and the company's own heat generation plants.

Data basis and calculation methodology

The key environmental figures include the resource consumption of all manufacturing companies of the Arbonia Group as well as the headquarters in Arbon (CH). Pure distribution companies were not included due to their comparatively low environmental impact. The calculation of the greenhouse gas inventory follows the guidelines of the WRI / WBCSD Greenhouse Gas Protocol.

Scope 1: Emissions from own heating systems.

Scope 2: Emissions that result from the production of purchased electricity and purchased district heating. Emission factors used: IEA 2020 and DEFRA 2020.

Key environmental figures

2020

2019

Delta

Energy consumption in MWh

363 619

351 080

4%

Thereof renewable

33.5%

31.1%

Electricity

125 623

121 894

3%

Own electricity production 1

8.8%

9.1%

Total renewable electricity

19.4%

20.0%

Heat

203 357

189 253

7%

Own heat production (wood chips/shavings)

97 529

84 976

15%

Natural gas

100 403

99 572

1%

Heating oil

3 066

3 513

−13%

District heating

2 360

1 193

98%

Fuels

34 639

39 932

−13%

Diesel

32 987

38 576

−14%

Petrol and Liquified Petroleum Gas (LPG)

1 652

1 356

22%

Energy consumption in kWh/CHF Net turnover

0.26

0.25

5%

GREENHOUSE GAS EMISSIONS in tCO2e

80 352

79 759

1%

Scope 1

32 129

33 309

−4%

Own heat production (wood chips/shavings) 2

1 507

1 313

15%

Natural gas

20 579

20 409

1%

Heating oil

820

939

−13%

Diesel

8 820

10 314

−14%

Petrol and Liquified Petroleum Gas (LPG)

403

334

21%

Scope 2

48 223

46 450

4%

Electricity

47 699

46 185

3%

District heating

524

265

98%

Greenhouse gas emissions in kgCO2e/CHF Net sales

0.058

0.056

2%

1 The company's own electricity is produced by means of photovoltaic systems and a wind turbine. These plants do not cause any CO2-emissions during operation.

2 Direct emissions due to the production of the greenhouse gases methane and nitrous oxide, which are not absorbed during growth. Biogenic CO2 emissions are reported outside of scopes according to the GHG Protocol and amounted to 34 483 t CO2e in 2020 and 30 045 t CO2e in 2019.

Heating, Ventilation and Air Conditioning Division

Saving energy systematically

Reducing energy consumption and CO2 emissions are important issues for the HVAC Division because they not only contribute to environmental protection and resource conservation but also improve its profitability and market position. By increasing energy efficiency, the division not only reduces its own expenses, but end customers also benefit from energy-efficient products. The climate packages of the European countries provide for tax depreciation and subsidies for the modernisation of house and especially heating systems in order to reduce CO2 emissions. The division is intensively pursuing the strategy of offering a holistic, CO2-free heating system with solutions ranging from efficient heat generation and energy-conscious heat transfer up to energy storage.

Traditional heat exchange also offers considerable potential for reducing energy consumption. Radiators equipped with the "x2 inside" principle (serial flow through flat panel radiators) reduce the energy demand of conventional flat panel radiators by 11%. Overall, the energy-efficient products of the HVAC Division sold since 2010 – heat pumps, "Therm-x2" flat panel radiators, fan coils and filters, ventilation units, as well as heat exchangers – will save up to one million tonnes of CO2 annually from 2025.

Portfolio expansions for more energy efficiency

Environmentally friendly products are continuously being added to the existing product portfolio of the division. These include a new generation of heat pumps that use the refrigerant "R32", which has a lower global warming potential than conventional alternatives. The new "Hydrotower" heat and cold storage system also has a higher energy efficiency than older systems. For improved indoor climate, the division impresses with its newly developed residential ventilation in a compact design, which enables a highly efficient heat recovery.

The patented electrostatic filter system "Crystall®", which is able to remove around 95% of impurities from the air, was also very well received in 2020. Its energy consumption is up to 75% lower than that of conventional, mechanical filters, and it is compatible with fan coils, airhandling units, ventilation units, and residential ventilation and can be easily retrofitted for existing products. In addition, the system eliminates the need for energy-intensive heating of the air after conventional ventilation procedures such as opening windows. Unlike the widely used HEPA filter inserts, the filter can be easily cleaned and reused.

In order to complete its heating system, the division is working intensively on the development of an environmentally friendly, resource-saving, and cost-efficient storage system for electricity generated from solar energy. The storage is currently in the prototype phase.

In building technology, the technology used offers decisive advantages: It is currently the longest-lasting storage solution on the market because it can be charged and discharged as often as desired without losing capacity (no degeneration of the storage medium). In addition, it is non-flammable and thus guarantees a high degree of operational health and safety for use in buildings. The storage is also convincing in terms of environmental friendliness, as it does not require rare earths or raw materials from conflict areas, thus enabling significantly more ecological and resourcesaving electricity storage.

Certified sites

As a result of its ISO 14001 and 50001 certification, the HVAC Division has been addressing the issue of energy efficiency for years. The ISO 50001 standard requires the monitoring of key energy figures, which is why monitoring and evaluation of energy efficiency are standard. At the largest production plant of the division in Plattling (D), for example, a modern energy data acquisition system is in use that analyses weak points in production so that inefficient energy consumers can be immediately replaced. In addition, clear responsibilities and specially appointed energy officers within the division guarantee a systematic approach. With the help of energy management, the division aims to reduce energy consumption by 1000 MWH compared to the 2020 financial year.

Taking charge of our own energy production

The HVAC Division primarily focuses its energy management on the largest energy consumers. Through investments in modern, efficient production machinery and energy-saving LED lighting, electricity consumption is being reduced in a targeted manner. Various locations produce a large part of their own electricity consumption using their own photovoltaic systems, including Plattling (D), Corbetta (I), and Dilsen (BE). Extensions to the existing photovoltaic systems and the construction of new ones are planned. The Dilsen (BE) site also has its own wind turbine with a capacity of 2 MW. The plant produces around 3.7 GWh of green electricity annually.

New buildings and refurbishments of warehouses and production halls are also based on the most modern energy aspects, such as the modernisation of the welding line cooling system in Plattling (D). In addition, the division has specifically optimised its vehicle fleet so that it complies with the "Euro 6" emissions standard. Thanks to these measures, the division will reduce its CO2 emissions by at least 400 tonnes per year.

Active against avoidable waste

At the Stříbro (CZ) site, the HVAC Division is optimising packaging and switching from film and Styrofoam to recyclable cardboard packaging. At the Plattling (D) production plant, it is working on film-free packaging for steel panel radiators.

Sanitary Equipment Division

Established standards ensure efficiency

The reduction of energy consumption and CO2 emissions has been central to the Sanitary Equipment Division for many years, both in product development and in the entire manufacturing process. This makes it possible to reduce costs in the long term, improve the division's own profitability, and strengthen its market position. This is also underscored by the quality, environmental, and energy management certified according to ISO 9001, 14001, and 50001. A modern energy data acquisition system is used at the Plattling (D) site to analyse weak points in production so that inefficient energy consumers can be immediately replaced. Energy officers on site also ensure efficient processes.

Investments in energy-saving technology

The investment of the Sanitary Equipment Division in state-of-the-art production facilities and the use of energy-saving LED lighting will reduce electricity consumption in the long term. Attention is also paid to energy-saving technology in new buildings and renovations at the locations of the division. For example, the new office building with the Shower Centre of Bekon-Koralle in Dagmersellen (CH) was designed with state-of-the-art environmental considerations in mind and equipped with the latest, most energy-efficient products from Arbonia. In addition, photovoltaic systems on the roofs of the buildings in Plattling (D) and Dagmersellen (CH) ensure environmentally friendly energy generation.

Reduction of packaging material

The Sanitary Equipment Division is very active in the areas of film-free packaging and transport in order to offer environmentally friendly solutions. To reduce transport weight and thus improve the environmental balance, it replaced wooden packaging with lighter but equally functional cardboard honeycomb panels.

Windows Division

Keeping heat in the house

Windows also play a decisive role in the energy demand in buildings. Modern, insulating building envelopes and windows reduce the energy consumption and thus the ancillary costs as well. Against this background, the Windows Division is aware of its special responsibility with regard to saving energy and protecting the climate. In the course of an energy-related building renovation, the insulation performance can be decisively improved by replacing windows, because old windows have heat transfer coefficients of around 3 W/m²K, while modern windows have coefficients of around 0.7 W/m²K. A modern window is therefore better insulated by a factor of 4 and further reduces heat loss by gaining solar heat. If the windows face south, it is even possible that a modern window will compensate for its heat losses through solar energy and gain more energy than it loses over an entire heating period.

Products with an exemplary ecological balance

Technical product features are continuously optimised through new developments. In particular, the new vinyl and vinyl/aluminium frames improve energy efficiency because they can accommodate wider glass packages that are thus more energy-efficient. Part of the window range is Minergie-certified and has an excellent ecological balance thanks to its high quality and durability. In this way, the products positively affect the energy certification of buildings and ensure the value of real estate. At the same time, the technically high-quality windows also contribute to a pleasant living climate.

With a view to the value-added chain

A holistic process ensures that the windows meet high sustainability and quality standards. This holds for the entire value-added chain, from procurement of the raw materials and goods through development, production, marketing, sales, and logistics to disposal. The persons responsible for these areas meet regularly to optimise the value-added chain and reduce material consumption. For this purpose, the key performance figures "reject rate", "productivity", "logistics costs", and "error costs" are continuously monitored.

Recycling is becoming more important

In the production competence centres of the Windows Division, the automation of processes and the conservation of energy and material are continually improved. The division's own test laboratory ensures high product quality through quality testing. The division is guided by the international ISO 9001 quality standard. An important aspect of this is the minimisation of rejects and waste. The Windows Division processes more and more recycled plastic. It pays attention to this not only with suppliers but also in its own plants. In the Pravenec (SK) and Zambrów (PL) production plants, plastic waste is processed and returned to production. The production plant in Langenwetzendorf (D) uses wood chips that are generated during production for heating or sells them to pellet manufacturers.

Optimisation of logistics and operation

The Windows Division also minimises environmental impacts by reducing transport distances. To save on travel, the division has installed its own insulating glass production facility at the Pravenec (SK) site. This "in-house" solution makes manufacturing both more flexible and higher-quality. With the Transport Logistic Optimizer (TLO), the division has also introduced a system for optimising logistics. Measures are decided in monthly meetings; among other things, it has been possible to reduce the number of vehicles because more windows are transported per truck. The division also avoids business trips as much as possible; this was the case even before the COVID-19 pandemic. In the interest of environmental and climate protection, meetings are held via video conference whenever possible. In addition, a photovoltaic system on the roof of the production plant in Langenwetzendorf (D) ensures the production of clean electricity.

Doors Division

Energy management for continuous improvement

Energy management according to ISO 50001 is a high priority in the Doors Division. The goal is to continuously reduce energy consumption and greenhouse gas emissions. An annual budget is available for corresponding measures. In 2020, for example, it was possible to eliminate a filter house at Garant by restructuring machines and systems, which made it possible to dismantle exhaust air lines and the associated motors. Furthermore, one third of the production area was converted to LED lighting. Prüm has set itself the goal for 2021 of reducing energy consumption by 100,000 kWh per year by completely replacing its lighting with LEDs.

Internal and external audits provide clarity

The energy management system raises awareness for savings, and internal and external controls make the development of consumption values transparent. Garant, for example, evaluates key energy figures defined on a monthly basis. The measuring points for monitoring and evaluating energy consumption have been expanded for this purpose. Prüm also determines the key energy figures every month. For 2020, the company set itself the goal of using a maximum of 11.09 kWh per produced part. This goal was already exceeded at the end of October. On the one hand, this was thanks to new energy-efficient equipment for the production of the premium edge and, on the other hand, thanks to an exceptionally good order situation, which meant that the energy-intensive start-up and shut-down of the machines was no longer necessary due to extra shifts. In addition to internal consumption monitoring, Prüm and Garant have their energy management systems externally checked and certified by TÜV every year. Invado in Poland also monitors its electricity consumption during operation, especially with regard to production volume. Every year, the company compares the values with those of the previous year. In accordance with regulations, detailed audits are also carried out at regular intervals. In the future, the division intends to expand and optimise its energy management further.

Energy-efficient machines pay off

The Doors Division is pursuing several approaches to reduce energy consumption. At RWD Schlatter, a new, in-house painting facility was put into operation, eliminating the need for transport to an external service provider. In addition, the company can now better control the painting processes and quality. Another important point is new, more energy-efficient machines and processes, which require a consistent investment policy. Whenever a machine needs to be replaced, the division acquires modern, energy-saving equipment. An example of this is the significantly more efficient CNC machining centre of RWD Schlatter and, in the machinery of Invado, the replacement of large motors with energy-saving electric spindles coupled to frequency converters. Savings are also being made in lighting; Invado is currently switching to LED lights, for example.

Using production waste sensibly

In 2020, Invado realised a major thermal energy project: A newly installed Biotec boiler enables the thermal utilisation of harmless production waste. The obtained thermal energy is used for heating and hot water processing. Residual materials from production – wood chips and dust – are also burned in the existing combined heat and power (CHP) plant at the Prüm door factory. The heat produced there heats a large part of the factory and drives a turbine to generate electricity. Over the year, the CHP plant produces more electricity and heat than the site consumes. Therefore, surrounding industries can buy the surplus green energy. The division is also making progress in the area of packaging; less film and Styrofoam packaging conserves resources and minimizes waste.

Resource efficiency

Arbonia is committed to using resources responsibly. Clever product design and a production that is as free of defects as possible ensure that materials are used efficiently. Although it is not possible to completely avoid production residues, at least some of them are returned to production through recycling.

The figures for commercial and hazardous waste cover all manufacturing companies in the Arbonia Group as well as the headquarters in Arbon, Switzerland. Pure distribution companies were not included.

Key figures for resource efficiency

2020

2019

Delta

Error costs in % of net revenues

1.6

1.7

−5%

Waste in t

25 128

25 224

−0.4%

Non-hazardous waste

15 925

15 821

1%

Incineration

4 967

4 801

3%

Landfill

2 002

2 153

−7%

Recycling

8 956

8 867

1%

Hazardous waste

9 203

9 403

−2%

Incineration

6 069

6 033

0.6%

Landfill

1 123

955

18%

Recycling

2 011

2 415

−17%

Heating, Ventilation and Air Conditioning Division

Good resource management relieves the burden on the environment, avoids waste, and reduces material consumption and rejects. The objective of the HVAC Division is to reduce error costs to less than 1% of revenue annually while increasing productivity. The division also wants to use more recycled materials.

Resource efficiency is continuously monitored, among other methods, by tracking key figures for internal and external error costs, by internal audits as well as supplier audits, by functional cost and value analyses, and by monthly reporting.

By complying with internal and external guidelines and thanks to efficient processes, it was possible to reduce reject and error costs further in 2020.

Sanitary Equipment Division

The Sanitary Equipment Division attaches great importance to resource-efficient manufacturing in product development in order to optimise material consumption and avoid waste. The objective is to minimise reject and error costs through continuous monitoring of resource efficiency.

In the past years, the division has changed its packaging concept for this reason and now largely dispenses with the use of film. This has enabled it to reduce its plastic consumption and the associated costs. By progressively using digital media, the division has also succeeded in greatly reducing its paper consumption for brochures and printed advertising material.

Windows Division

The Windows Division reduces production waste to an absolute minimum. In contract manufacturing, this poses a challenge since each product is individually customised according to the customer's requirements. The risk of errors is higher and the need for optimisation is greater than in serial manufacturing.

Where technically possible and economically viable, production residues are recycled: In the vinyl window production at Dobroplast, there is an almost seamless cycle. Profile scrap that is created during production is ground and added back to the dry blend (dry mix of vinyl powder). In addition, recycling materials are consistently used alongside fresh vinyl. The production sites of the suppliers are certified as "zero granulate loss" according to the pro-K industrial association and are members of Rewindo GmbH. In the new insulating glass production in Pravenec (SK), as well as at Dobroplast, the glass cutting is also continuously optimised to reduce waste.

Doors Division

The Doors Division achieves maximum utilisation of materials through the reduction of waste and through stable, simple processes. Residual materials from production are recycled as much as possible. However, informing and training employees is also important to improve resource efficiency. The division links this topic closely to product quality, because high-quality products mean fewer customer complaints and thus fewer rejects. The companies of the division also want to reduce their inventories and improve delivery accuracy.

At Invado, the sustainability certification of products is an important topic. More and more buyers are paying attention to low-pollutant materials and the seal of the Forest Stewardship Council (FSC). In the future, Invado therefore wants to launch more products on the market with the FSC label as well as products that emit less formaldehyde. In 2020, the company was able to significantly increase both the sales volume of certified products as well as the material efficiency. Emission control is also a focus for the other companies of the Doors Division. The products of Prüm and Garant are therefore regularly subjected to a pollutant test by the ECO Institute and certified accordingly.

Prüm, Garant, and RWD Schlatter achieved further successes in 2020. Prüm harmonised the materials that it used and was therefore able to purchase larger quantities at better prices as well as reduce transport costs. Thanks to an adjustment of the design processes and the associated outsourcing of a sub-process to a more efficient supplier, Prüm and Garant were able to simplify manufacturing and reduce rejects.

Procurement & supply chain

Arbonia mainly uses wood, steel, aluminium, as well as vinyl in its production and pays attention to sustainability not only in its own organisation but also with its suppliers. Since the majority of materials are sourced from suppliers in the EU, a high standard is already enshrined in law. Nevertheless, environmental and social criteria play an increasingly important role in the selection of suppliers. The group is raising awareness of ESG criteria in purchasing and is working on a group-wide standard for supplier assessment that includes ESG-relevant content. Technically, this assessment is to be mapped on a group e-procurement platform.

As part of the digitisation of procurement, the Corporate Procurement department began establishing such a platform as a technical layer over the ERP systems of the divisions in the reporting year. This allows the most modern procurement processes to be established in a modular system. In the future, the platform will also enable efficient networking with suppliers, external information providers, and service providers. For supplier evaluation, in addition to internally generated key figures, external key figures such as creditworthiness, risk indicators, or ESG ratings are to be combined into a holistic assessment. Arbonia is currently examining how creditworthiness indicators and ESG information can be recorded in the system for the 200 largest suppliers as early as 2021. At the same time, it is evaluating the purchase of an external ESG rating for its most important suppliers in order to check how many suppliers and what portion of the purchasing volume is covered by an ESG assessment. Suppliers already have to guarantee that human rights are respected and, in particular, that child labour and forced labour are prevented. Since more than 95% of the purchasing volume comes from the EU or the EEA, Arbonia assumes that there are no risks in this respect in the supply chain.

Arbonia prefers to procure the materials, semi-finished goods, and products required for its production from local suppliers in order to promote the local economy and minimise delivery distances. The total purchasing volume of Arbonia in the last years was around one billion Swiss francs per year. Of this, Arbonia purchased almost 65% from local suppliers, i.e. suppliers from the same country as the purchasing companies of Arbonia. When including suppliers based in countries where Arbonia also has sites, the proportion is even higher at around 80%.

The responsible use of energy and the reduction of CO2 emissions are tasks that affect all areas of the company's work – from product development and manufacturing to transport and logistics. Arbonia correspondingly attaches great importance to these issues and is determined to make a significant contribution to climate protection and resource conservation. Increasing customer expectations regarding sustainability and growing legal requirements are also causing Arbonia to strengthen its commitment in these areas.