a) Legal Name

Belimo Group, also referred to as Belimo or the Group, with the ultimate parent company BELIMO Holding AG.

b) Nature of Ownership and Legal Form

The ultimate parent company, BELIMO Holding AG, is the only listed company within the Group. Its shares are publicly traded on the Swiss stock Exchange SIX Swiss Exchange (ISIN CH1101098163).

c) Location of the Group‘s Headquarters

The Group has its headquarters in Hinwil (Switzerland).

d) Countries of Operation

Belimo has disclosed all its subsidiaries in its audited consolidated financial statements.

a) Entities Included in the Sustainability Reporting

Generally, all entities that the Group controlled during the reporting period were included in its sustainability report. Consequently, the same group of entities was covered as in the consolidated financial report.

b) Differences to the Reporting Scope of the Financial Reporting

Due to materiality reasons, the Group decided to limit the reporting scope for some sustainability disclosures. In this case, the limited scope is indicated in the respective sustainability topic.

For example, the disclosure of the energy consumption within the organization was limited to the main sites located in Danbury (Connecticut, USA) and in Hinwil (Switzerland).

c) Approach Used for Consolidating the Information

The sustainability disclosures of Belimo show the aggregated figures reported by each legal entity. Effects of non-controlling interest were neglected, due to the current structure of the Group and materiality reasons. Entities that are acquired or sold during the course of the year are included in the reporting with effect from the date on which control commences and excluded from the date on which control is lost.

a) Reporting Period and Frequency of the Sustainability Reporting

The reporting period for BELIMO Holding AG and all of its subsidiaries is January 1, 2022, to December 31, 2022, for this sustainability report. The sustainability report is published once a year as an integrated part of the Annual Report.

b) Reporting Period and Frequency of the Financial Reporting

The reporting period for the financial reporting is the same as the reporting period of the sustainability reporting, covering the period January 1 to December 31 of a reporting year.

c) Publication Date of the Sustainability Report

This sustainability report is published on March 6, 2023.

d) Contact Point for Questions About the Report or Reported Information

The Group CFO and the Investor Relations Officer (IRO) are the designated contact persons:

Dr. Markus Schürch, CFO / Gérard Moinat, IRO
Brunnenbachstrasse 1
8340 Hinwil (Switzerland)
Phone +41 43 843 63 80
E-mail ir@belimo.ch

a) Restatements of Information from Previous Reporting Periods

The Group has not made material restatements of information disclosed in previous reporting periods. Only the employee turnover of 2021 is adjusted from 7.4% to 8.0%. 

a) External Assurance Practice

There is no external review of the sustainability reporting in its entirety, but individual processes, results, and statements are inspected by external parties.

• The consolidated financial statements and its notes are audited by an independent, external auditor (see Financial Statements Statutory Auditor‘s Report).
• The Remuneration Report is audited by an independent, external auditor (see Remuneration Statutory Auditor‘s Report).
• All major Belimo sites are certified according to the international environmental management standard ISO 14001 and quality management standard ISO 9001. These sites also undergo regular audits by the Swiss Association for Quality and Management Systems (SQS) and the China Quality Certification Center (CQC) in China.
  
  For additional information, see Energy Efficiency in Operations.
  
  Furthermore, the GRI inspected whether the GRI content index is clearly presented and the references for disclosures of all GRI Standards in this GRI Content Index match the corresponding parts of the report, as part of the service. The successful inspection is indicated by the GRI label in the GRI Content Index – Essentials.

a) Sectors Belimo is Active in

Belimo is the global market leader in the development, production, and sales of field devices for the energy-efficient control of heating, ventilation, and air-conditioning systems. The focus of our core business is on damper actuators, control valves, sensors and meters.

According to the International Standard Industrial Classification of All Economic Activities (ISIC), our products belong to ISIC 265 – Manufacture of measuring, testing, navigating, and control equipment. 

b) Value Chain Description

Belimo views its suppliers as key partners and as the most critical element of its asset-light model. The main part of the production costs is incurred within a network of suppliers, with Belimo focusing on final assembly, testing, and customizing of products.

The main procurement region is Europe, and most of the suppliers are certified according to ISO 9001 and ISO 14001. For additional information, see Partnerships with Suppliers and Environmental Footprint of the Supply Chain.

About 8.0 million actuators are shipped every year by the subsidiaries located worldwide. 

Sales information by market region and by applications as well as information on geographic regions is disclosed in the segment reporting of the consolidated financial statements.

c) Other Relevant Business Relationships

Belimo has no other relevant business relationships (joint ventures and other entities directly linked to the organization’s operations, products, or services) that are not described as part of its value chain under 2-6-b.

d) Significant Changes Compared to the Previous Reporting Period

There were no material changes in the activities, value chain, and other business relationships in the reporting year.

a) Number of Employees by Gender and by Region

b) Number of Employees by Contract Type, Employment Type, and by Region

Employees by contract type:

Employees by contract type and gender:

Employees by employment type:

Employees by employment type and gender:

c) Methodologies and Assumptions Used to Compile Employee Data

Employee data disclosed in this section correspond to full-time equivalents (FTE) as at the end of the reporting period. An employee is an individual who is in an employment relationship with the organization according to national law or practice.

The definitions of permanent, temporary, full-time, and part-time employees differ between countries. The Group has employees in more than one country. Therefore, the definitions as per the national laws of the countries where the employees are based were used to calculate country-level data. The country-level data then was added up to calculate total numbers, disregarding differences in national legal definitions.

d) Contextual Information

Temporary employees cover production peaks or are engaged for temporary projects. In some regions and functions, it is a standard practice to offer a temporary contract to new employees before an offer of permanent employment is made.

Belimo does not employ non-guaranteed hours employees.

e) Significant Fluctuations in the Number of Employees

During the reporting period, no significant fluctuation took place. 

The Group‘s growth strategy requires continuous talent acquisition. Additional information about the Credibility Culture of the Group is disclosed in the following sections:

• Skill Development and Knowledge Management
• Equal Opportunity Employment

a) Workers Who Are not Employees

Belimo engages external workers to cover production peaks and closely collaborates with external engineers and consultants in research and development projects. Furthermore, the Group offers work opportunities for individuals with disabilities in several programs.

As at December 31, 2022, Belimo engaged 366 (2021: not available) workers who are not employees. 

b) Methodologies and Assumptions Used to Compile Data on Workers Who Are not Employees

Workers disclosed in this section correspond to headcounts as at the end of the reporting period. 

c) Significant Fluctuations in the Number of Workers Who Are not Employees

There were no significant fluctuations in the number of workers.

a) Governance Structure Description

The Board of Directors of BELIMO Holding AG is the highest Governance Body of the Group. It determines the strategic objectives and the general resources for achieving these.

b) Committees of the Highest Governance Body Responsible for Decision-Making

The Board of Directors has established three committees: The Audit Committee, the Remuneration and Nomination Committee, as well as the Strategy Committee.

c) Composition of the Highest Governance Body

The Board of Directors of BELIMO Holding AG comprised a total of six non-executive members as at December 31, 2022. 

Tenure, gender, competencies relevant to the impact on the organization, stakeholder representation of the board members as well as other significant positions and commitments, details about governance structure, the committees, and the composition of the highest governance body are disclosed in the Corporate Governance Report. 

For additional information, see GRI 405-1.

a) Nomination and Selection Processes for the Highest Governance Body

According to the Articles of Incorporation, members of the Board of Directors are elected individually at the Annual General Meeting for a term of office of one year.

The Board of Directors constitutes itself, subject to legal and statutory provisions. The Chairman and the Deputy Chairman of the Board of Directors as well as the members of the Remuneration and Nomination Committee are elected individually at the Annual General Meeting for a term of office of one year, which ends with the next ordinary Annual General Meeting.

b) Criteria Used for Nominating and Selecting Highest Governance Body Members

The Group nominates new members of the Board of Directors in accordance with its Articles of Incorporation, the Swiss Code of Best Practice for Corporate Governance, published by economiesuisse, the regulation of the Swiss stock exchange, SIX Swiss Exchange, and the Swiss Code of Obligations.

Furthermore, the following criteria are used:

• The candidate‘s qualifications considering the needs of the Company, and the current members of the Board of Directors.
• Diversity, to ensure diverse professional and personal backgrounds of the Board of Directors.
• Personality, to nominate individuals of highest character and integrity.
• Independence, the candidate should be free of any conflict of interest.

Details on the nomination and selection process for the highest governance body can be found in Board of Directors in Corporate Governance.

a) Chair of the Highest Governance Body

The Board of Directors consists of non-executive members. This means that no member exercised an operational function for Belimo during the three financial years preceding the reporting period. The other members of the Board of Directors and the companies they represent have no material business relationship with Belimo.

The Chairman of the Board of Directors, Patrick Burkhalter, is an independent, non-executive member of the Board of Directors.

b) Conflicts of Interest

There is no conflict of interest for the Chairman of the Board of Directors. 

a) Role of the Highest Governance Body and of Senior Executives in Developing, Approving, and Updating the Organization’s Purpose, Mission Statements, Strategies, and Policies

The non-transferable responsibilities of the Board of Directors pursuant to the Swiss Code of Obligations and the Articles of Incorporation are disclosed in the Corporate Governance Report of the Group. 

The Board of Directors determines the strategic objectives. The Board of Directors delegates operational business management to the Chief Executive Officer (CEO). The CEO draws up the strategic and financial planning and the budget with the Executive Committee and submits it to the Board of Directors for approval.

The highest body responsible for the corporate strategy regarding environmental, social, and governance topics is the Board of Directors of BELIMO Holding AG. Meanwhile, the Board of Director’s Audit Committee is responsible for the reporting and the compliance regarding environmental, social, and governance topics.

b) Role of the Highest Governance Body in Overseeing the Organization’s Due Diligence and Other Processes to Identify and Manage the Organization’s Impacts

At every board meeting, the CEO or CFO informs the Board of Directors about current business developments (including developments regarding the economy, environment, and people). The Chairman of the Board of Directors maintains regular contact and discussions with the CEO and is kept up to date by him on all transactions and issues that are of fundamental importance or that have wider implications.

c) Role of the Highest Governance Body in Reviewing the Effectiveness of the Organization’s Processes

The Board of Directors has implemented a comprehensive system for monitoring and controlling risks associated with the business activities. A company-wide risk assessment is carried out annually, using a systematic risk management methodology. 

An independent audit firm has been assigned by the Audit Committee to perform objective internal audit services in order to ensure compliance with applicable laws and internal directives and procedures.

Further information on the role of the highest governance body is disclosed in Board of Directors in Corporate Governance.

a) How the Highest Governance Body Delegates Responsibility for Managing the Organization’s Impacts on the Economy, Environment, and People

The Board of Directors has assigned operational management to the Chief Executive Officer. The CEO is authorized to further delegate powers to individual members of the Executive Committee.

At the Executive Committee level, environmental, social, and governance topics are managed by the Sustainability Steering Committee, namely consisting of the Chief Executive Officer, the Chief Financial Officer, and the Chief Technology Officer. They are supported by the Head of Group Division Logistics/Customization, the Global Head of Human Resources, the Head of Group Quality and Sustainability, and the Head of Sustainability.

A Sustainability Working Group consisting of representatives from all major departments of Belimo assists them in operationalizing the corresponding initiatives.

b) Process and Frequency for Senior Executives or Other Employees to Report Back to the Highest Governance Body on the Management of the Organization’s Impacts

The Board of Directors is integrated in the management information system of Belimo and receives monthly financial key figures, and quarterly commented financial statements. 

The Board of Directors holds at least six ordinary meetings per year. During each meeting, the Board of Directors receives an update about major strategic initiatives and current business developments which also includes sustainability-related topics.

More information about the delegation of responsibility is reported in the Corporate Governance Report of the Group.

a) Role of the Highest Governance Body in Sustainability Reporting

The sustainability reporting (including materiality matrix) is reviewed and approved by the Board of Directors as part of the integrated annual report of Belimo.

b) Explanation, if the Highest Governance Body is not Responsible for Reviewing and Approving the Sustainability Reporting

Not applicable.

a) Processes for the Highest Governance Body to Ensure that Conflicts of Interest Are Prevented and Mitigated

The members of the Board of Directors are required to order their personal and business affairs and take whatever mea­sures necessary to ensure that conflicts of interest are avoided as far as possible. Should a conflict of interest nevertheless arise, the member concerned must inform the Chairman of the Board of Directors immediately. The members of the Board of Directors are obliged to abstain from negotiations in business that conflict with their own interests or with the interests of natural or legal persons closely associated with them.

The Board of Directors also complies with the Code of Conduct of Belimo, in which it is written that conflicts of interest are consciously avoided and that we make decisions based on the well-being of the Company, not personal interests.

b) Disclosure of Conflicts of Interest

Material conflicts of interest are disclosed in the Corporate Governance Report of the Group.

For additional information, see Board of Directors in Corporate Governance.

a) Communication of Critical Concerns to the Highest Governance Body

The CEO reports regularly to the Board of Directors on the course of business as well as on risks and changes in personnel at the management level. In addition to periodic reporting, he is obliged to inform the Board of Directors immediately about any business transactions of fundamental importance and about critical concerns.

b) Total Number and Nature of Critical Concerns that Were Communicated to the Highest Governance Body during the Reporting Period

In the 2022 reporting period, no critical concerns incurred that would have been communicated to the Board of Directors. 

a) Measures Taken to Advance the Collective Knowledge, Skills, and Experience of the Highest Governance Body on Sustainable Development

The Board of Directors is informed regularly by the Sustainability Steering Committee to strengthen the aggregated knowledge on sustainable development. 

The Chair of the Remuneration and Nomination Committee, Sandra Emme, is currently attending the ESG (Environment, Social, and Governance) Designation Program for Boards with the aim of understanding critical components of good ESG performance and enhancing important ESG competencies. This knowledge is and will be shared with the Board of Directors. She will obtain the ESG Competent Board Certification and Designation (GCB.D) in March 2023.

For additional information, see Board of Directors in Corporate Governance.

a) Processes for Evaluating the Performance of the Highest Governance Body in Overseeing the Management of the Organization’s Impacts

The Board of Directors conducts a self-evaluation of its work. This includes rating the strategic guidance, the risk management, and the early warning system of economic topics.

b) Frequency and Independence of the Evaluations

The self-evaluation is conducted once a year. The Remuneration and Nomination Committee is currently looking into conducting an external assessment of the Board.

c) Actions Taken in Response to the Evaluations

One relevant action was to permanently establish ESG (Environment, Social, and Governance) matters in the agenda of Board of Directors meetings.

a) Remuneration Policies for Members of the Highest Governance Body and Senior Executives

Belimo publishes a detailed annual Remuneration Report that includes all relevant information concerning the remuneration governance, policies, and the remuneration awarded in the reporting year.

b) Relation Between the Remuneration Policies for Members of the Highest Governance Body and Senior Executives and Their Objectives and Performance

To guarantee independence in executing their supervisory duties, the members of the Board of Directors receive a fixed remuneration that does not contain any performance-related component. For the Executive Committee, 40% of the variable remuneration is linked to non-financial business objectives, which are set at the beginning of the year. They are linked to the Belimo value-creation model and include objectives related to sustainability. 

For additional information, see Remuneration Report.

a) Process for Designing the Remuneration Policies and for Determining Remuneration

The Remuneration and Nomination Committee oversees the process for determining remuneration and comprises at least two non-executive, independent members of the Board of Directors. Information on the duties of the Remuneration and Nomination Committee is disclosed in the Remuneration Report 2022.

b) Results of Votes of Stakeholders (Including Shareholders) on Remuneration Policies and Proposals

The results of votes on remuneration policies and proposals can be found in the minutes of the Belimo Annual General Meeting 2022.

a) Annual Total Compensation Ratio

The annual total compensation ratio is not collected and therefore not disclosed.   

b) Annual Total Compensation Increase Ratio

The annual total compensation increase ratio is not collected and therefore not disclosed.

c) Contextual Information

The types of compensation as well as the title of the highest-paid individual is disclosed in the Remuneration Report.

a) Statement From the Highest Governance Body on Sustainable Development 

The relevance of sustainable development to the organization can be found in the Letter to the Shareholders as well as in in the section Sustainability Goals.

a) Policy Commitments for Responsible Business Conduct

Belimo is determined to manage its business in compliance with high ethical standards and applicable law. The Belimo mission statement has been supplemented by a Code of Conduct of the Belimo Group, on which all employees are required to attend a web-based training.
Furthermore, all suppliers are expected to sign the supplier‘s declaration, agreeing to comply with the Code of Conduct of the Belimo Group, and to demand conformity as well from their sub-suppliers.

b) Policy Commitment to Respect Human Rights

As described in the Code of Conduct of the Belimo Group, the Universal Declaration of Human Rights of the United Nations is respected. The policy commitment covers all internationally recognized human rights, including at-risk or vulnerable groups.
Additional information is disclosed in the Communication on Progress (CoP) of the United Nations Global Compact.

For additional information, see www.unglobalcompact.org > BELIMO Holding AG.

c) Links to Policy Commitments

See Code of Conduct of the BELIMO Group, Code of Conduct –Declaration from Supplier, and anti-bribery and anti-corruption policies (internal).

d) Level at Which Each of the Policy Commitments Was Approved

All policy commitments were approved by the Board of Directors. 

e) Extent to Which the Policy Commitments Apply

All policy commitments apply to all of the organization‘s activities and business relationships equally. Belimo is fully committed to its Code of Conduct and will not tolerate any behavior contrary to its content.

f) Communication of Policy Commitments to Workers, Business Partners, and Other Relevant Parties

See a)

a) Embedding Policy Commitments

Compliance with the Code of Conduct of the Group is an integral part of the onboarding process. All employees are required to attend a training course. Those expected to interact with customers and suppliers are also required to participate in separate training on the Company‘s anti-bribery and anti-corruption policies.

a) Processes to Remediate Negative Impacts

Everybody has access to the globally accessible independent Belimo Integrity Channel, where grievances can be entered anonymously. 

All information on negative impacts are escalated to the Head of Global Human Resources and the General Counsel.

For more information on our communication on critical concerns, see GRI 2-16.

b) Approach to Identify and Address Grievances

Each grievance is reviewed, internally investigated, and answered.

c) Other Processes in the Remediation of Negative Impacts

None.

d) Stakeholders Involved in the Design, Review, Operation, and Improvement of These Mechanisms

The main stakeholders are the Global Head of Human Resources, the General Counsel, and the members of the Executive Committee and the Board of Directors.

e) Tracking the Effectiveness of the Grievance Mechanisms

Each grievance is tracked in the Belimo Integrity Channel and must be closed in the system once resolved.

a) Mechanisms for Seeking Advice and Raising Concerns on Implementing the Organization’s Policies

Seeking advice on implementing our policies and practices for responsible business conduct in the organization‘s operations and business relationships is part of all our ongoing stakeholder engagements.

Employees are encouraged to report violations of the Code of Conduct or breaches of applicable law or ethical standards through the globally accessible Belimo Integrity Channel (see GRI 2-25), where grievances can be entered anonymously. This mechanism is operated by an external provider and is available around the clock seven days a week, in German, English, and Chinese.

a) Number of Significant Instances of Non-Compliance With Laws During the Reporting Period

In 2022, Belimo is not aware of any instances of non-compliance with laws and regulations for which fines or non-monetary sanctions were incurred. 

b) Total Number and Monetary Value of Fines for Instances of Non-Compliance With Laws

There were no instances in 2022.

c) Significant Instances of Non-Compliance

There were no instances in 2022.

d) Determining Significant Instances of Non-Compliance

There were no instances in 2022.

a) Membership Associations

Belimo has been a member of the UN Global Compact (UNGC) since 2013 and is committed to environmental protection, responsible working practices, human rights, and protection against corruption. The UNGC is the largest international initiative for responsible company management. As a trusted partner around the world, Belimo is actively involved in associations that sponsor research and formulate codes and standards.

A list of our affiliated organizations can be found here.

a) Approach to Engaging with Stakeholders

The stakeholders listed  below have been identified by the Executive Committee as important stakeholders in that they fulfil the following two criteria: the stakeholder group exerts a strong influence on the economic, environmental, or social performance of Belimo and the stakeholder group is strongly affected by the economic, environmental, or social performance of the Company.

Sustainability at Belimo is geared toward several stakeholder groups and aims to create added value for all of these groups. Meeting the interests of a stakeholder group, such as customers, must not be at the expense of other stakeholders, such as employees or local interest groups. Customers appreciate reliable and innovative application solutions and high product quality. Further strengths include consulting and service expertise throughout all customer relationship phases and partnership interactions with suppliers and consultants.

Capital Market
The Group CFO and the Investor Relations Officer are the designated contact persons for the capital market (shareholders, portfolio managers, and analysts). They regularly attend investor meetings, calls, conferences, and roadshows. An Annual Report, including a Remuneration Report, and a Semiannual Report are published each year. The Company also organizes at least one Conference for Media and Financial Analysts, an Annual General Meeting, and a Capital Markets Day during the same period.

Customers
The Belimo sales organization consists of outside sales managers, application consultants, training managers, inside sales technicians, customer service representatives and product management. It ensures excellent customer service while securing deep application know-how of the Belimo Organization. The digital customer experience is given by the website with webshop, online training events, application apps, technical support, customer hotline, mailings, interviews, and, most importantly, personal consultations through Belimo sales managers. All customer interactions are managed through a Customer Relationship Management tool.

Employees and Vulnerable Groups
Belimo regularly conducts management training on its corporate mission and values as well as semiannual performance reviews for all employees, new employee orientations and social and team-building events. To assess employee engagement, a group-wide employee survey is conducted every three years.

Suppliers
Initial contact takes place within the scope of the assessment procedure and implementation of the Code of Conduct for Suppliers, close collaboration in joint development projects. Approximately 10% of the supplier base is audited each year.

Municipalities and Authorities
Regular exchanges on topics such as taxes, working permits, and developments of production sites are held with municipalities and authorities.

a) Percentage of Total Employees Covered by Collective Bargaining Agreements

In total, 7.5% (2021: 7.0%) of all employees are covered by collective bargaining agreements.

b) Determining Working Conditions for Employees Not Covered by Collective Bargaining Agreements

For employees not covered by collective bargaining agreements, the working conditions and terms of employment are determined by local labor law regulations.

a) Process to Determine Material Topics

The materiality analysis forms the basis of the Belimo sustainability strategy. Topics are deemed material if they have a significant impact on the economy, environment, and people.

Belimo has determined relevant topics by means of a materiality assessment according to three dimensions: strategic relevance for the business, impact on sustainable development, and relevance for key stakeholder groups of Belimo. By identifying these topics and implementing the following steps to address these material topics, Belimo aims to strengthen its stakeholder relationships, monitor high-level opportunities, safeguard against risks, and maintain its successful mid- and long-term growth performance.

An overview of the topics identified in the process, which started with an industry and peer evaluation and was developed in dialogue with Group management across the Company, is provided in the resulting materiality map. A detailed description of the process is disclosed in the Materiality Overview.

b) Stakeholders and Experts Involved in the Process of Determining Material Topics

Belimo used a broad context analysis to identify a list of potentially relevant topics, taking into account industry-specific circumstances and studies, reporting standards, and customer, employee, and investor expectations. 

The resulting materiality map was set up internally by experts from various disciplines. Based on the material topics, the sustainability strategy and goals were successively defined, and the sustainability reporting was developed. For several years, the Group has been receiving support from an external consulting firm, specializing on sustainability strategy and reporting.  

For additional information, see Materiality Overview.

a) List of Material Topics

Belimo identified the following 16 material topics, which are displayed in the dark-gray fields of the Belimo Materiality Map below:

b) Changes to the List of Material Topics

The material topics remained unchanged compared to prior year.

For additional information, see Materiality Overview.

See Management Report / Economic Performance.

See Financial Report.

See Customer Engagement and Support.

See Partnerships with Suppliers.

See Process Efficiency and Short Lead Times.

See Growth Strategy and Innovation/Balanced Investment Portfolio.

See Strategic IP Management.

See Solution Leadership.

See Quality First.

See Energy Efficiency in Operations.

Scope: Danbury and Hinwil; encompassing approximately 85% of total energy consumption within Belimo

For additional information, see Energy Efficiency in Operations.

For additional information, see Energy Efficiency in Operations.

See High-Performance Solutions for Energy Efficiency and Indoor Air Quality.

For additional information, see Energy Efficiency in Operations.

For additional information, see Energy Efficiency in Operations.

See Digitally Enabled Solutions.

Our quality-first initiative is an essential pillar for managing sustainable product development, ensuring continuous improvement, and handling complaints. All product development at Belimo follows a structured design process – certified according to ISO 9001:2015 and ISO 14001:2015 – where the “voice of the customer” provides vital information. This input is generated through onsite interviews with different customers across different regions, conducted in line with CESIM^®.

For additional information, see Environmental Footprint of the Supply Chain.

See Employee Empowerment and Engagement.