IFRS Sustainability Disclosures
Since 2024, Belimo has reported in accordance with the IFRS® Sustainability Disclosure Standards as issued by the International Sustainability Standards Board (ISSB). While IFRS S1 outlines general requirements for sustainability-related financial information and offers general clarifications, IFRS S2 focuses specifically on climate-related disclosures. By applying IFRS S2, Belimo is aligning its sustainability disclosures with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD).
Governance
The Board of Directors of BELIMO Holding AG is the highest governing body of the Group. It determines the strategic objectives and oversees the climate-related risks and opportunities impacting the Group. The members of the Board bring broad expertise in sustainability. In 2023, two Board members, Sandra Emme and Ines Pöschel, completed the ESG Designation Certificate for Board Members, a program tailored to board-level ESG education. Furthermore, the Group Sustainability Team provides information to the Board on matters relevant to its collective knowledge in sustainable development. The Audit Committee of the Board of Directors is responsible for reporting and ensuring compliance regarding ESG topics.
The Board of Directors sets the strategic goals of the Group and delegates operational management to the Chief Executive Officer (CEO). The CEO is authorized to delegate further powers and responsibilities to specific members of the Executive Committee. The Executive Committee is advised and guided by the Head of Group Sustainability. Sustainability initiatives are operationalized by the Sustainability Program Team comprising representatives from all the main Belimo departments. Group Sustainability reports quarterly to the CEO on ESG topics, including climate change and coordinates the integration of these aspects into core business activities.
Climate-related risks and opportunities impacting the Group are an integral part of the annual, Company-wide risk assessment and are treated like other operational and financial risks and opportunities. The Executive Committee directly oversees progress towards strategic targets, including those related to climate change. Regular reviews enable the Executive Committee to take the necessary operational and strategic actions to keep targets on track. The Board of Directors is regularly informed by the Executive Committee and Group Sustainability about the progress towards climate targets.
Strategy
Belimo has assessed twelve climate-related risks and opportunities that could reasonably affect the Company's prospects. The assessment covers both the Company's own operations (OO) and the entire value chain (VC). The climate-related risks are classified as either physical or transition risks. The potential effects of these risks are expected to occur over short-, medium-, or long-term time horizons. The definition of these time horizons is aligned with the Belimo Double Materiality Assessment:
- Short-term: below 2 years
- Medium-term: 2-5 years
- Long-term: >5 years
Physical / Transition | Category | Name | Opportunity vs. Risk | Own Operation vs. Value Chain | Time horizon | Description | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Physical | Chronical patterns | Long-term climate patterns | Opportunity | VC | Long-term | Increased global warming leading to heat waves and maximum temperature requires climate adaptation with more intelligent and efficient building automation and HVAC systems (cooling). | ||||||
Transition | Resource efficiency | Resource efficiency through circularity | Opportunity | VC | Medium-term | Introduction of circular business practices and further developments in reuse / refurbishment and recycling of products reduce the environmental and climate impact and reduces the need to rely on virgin raw materials, which reduces material costs (sourcing). | ||||||
Resource efficiency through building optimization | Opportunity | VC | Long-term | Opportunity to contribute to more energy-efficient buildings and enable carbon savings by installing Belimo products: meeting the customer need for energy efficiency which leads to increased revenues and better competitive position. | ||||||||
Policy and Legal | GHG emissions pricing | Risk | OO / VC | Medium-term Long-term | Increased GHG emission pricing, e.g. Carbon Border Adjustment Mechanism (CBAM) in Europe leading to increased operating / compliance costs. | |||||||
GHG emissions reporting | Opportunity | OO / VC | Medium-term | Opportunity to create transparency on GHG emissions (Company and product level) and to gain competitive advantage when reporting progress against targets and disclosing a product's carbon footprint transparently. | ||||||||
Regulations on products | Risk | VC | Medium-term Long-term | Increased regulatory requirements on products / certifications / declaration leading to write-offs, asset impairment, and early retirement of existing assets. |
Physical / Transition | Category | Name | Opportunity vs. Risk | Own Operation vs. Value Chain | Time horizon | Description | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Transition | Products & Services | Products substitution | Opportunity | VC | Medium-term Long-term | Development of new low-carbon products through R&D and innovation leading to increased revenue through demand for lower emissions products. | ||||||
Technology | Cost of product technology | Risk | OO / VC | Medium-term Long-term | Costs for transition to lower emission technology, e.g. costs to adopt new practices and processes, capital investment in technology development, higher R&D expenditures, higher prices of sourcing material / products. | |||||||
Opportunity | VC | Medium-term Long-term | Cost savings in use-phase for customers due to lower energy demand. | |||||||||
Reputation | Consumer preferences | Risk | VC | Medium-term Long-term | Shift in customer preferences and perceptions of Company with regard to climate change leading to reduction of revenue from decreased demand for products. | |||||||
Opportunity | VC | Medium-term Long-term | Shift in consumer preferences and perceptions of Company / products with regard to climate change leading to increased demand for products by meeting their requirements. | |||||||||
Stakeholder concern | Risk | VC | Medium-term Long-term | Increased stakeholder concern or negative stakeholder feedback on climate mitigation actions of Company leading to reduction in capital availability and overall worse reputation of Company. |
Belimo has identified five significant climate-related opportunities:
- Resource efficiency through building optimization
- Long-term climate patterns
- Consumer preferences
- Product technology costs
- Product substitution.
Additionally, stakeholder concern has been recognized as a significant climate-related risk.
The impact of climate-related risks and opportunities on Belimo's business model and value chain is primarily concentrated in the downstream value chain, particularly during the use-phase of its products.
More broadly, Belimo's product portfolio across its three business lines offers a wide range of solutions to help customers reduce their climate impact and building energy costs, while also supporting adaptation to long-term climate trends.
Thus, Belimo is in the process of further developing product compliance and sustainability requirements to meet customer preferences and regulatory requirements related to climate change. This includes sustainable material sourcing, shifts in transportation modes, and reducing energy consumption during the product's use-phase. Belimo also engages closely with suppliers on their climate change mitigation actions. Regular interaction with customers helps Belimo identify climate-related requirements that support our customers in meeting their own targets.
Innovation and R&D remain key priorities for the Company, which invested CHF 75.5 million in R&D in 2025. These investments are directed toward developing innovative new products and solutions that deliver ecological, climatic, and social benefits during the product use-phase.
To set near- and long-term climate targets, Belimo has defined a climate transition plan and decarbonization model focused on reducing energy consumption during the product use-phase (standby energy), actively engaging suppliers to reduce GHG emissions, sourcing lower carbon materials, and optimizing the transport network to further reduce shipping emissions while maintaining short lead times.
The effects of climate-related risks and opportunities on financial performance during the reporting period were assessed as part of the risk assessment process, but will not be disclosed quantitatively. The same applies to the anticipated effects on financial performance over the short-, medium- and long-term. In general, Belimo expects its financial performance to improve due to increased revenues from products aligned with the lower-carbon economy.
Risk Management
Belimo uses a standardized Enterprise Risk Management process to assess and prioritize climate-related risks and opportunities. This annual process is carried out by the Executive Committee. Climate-related risks and opportunities were collected and defined by Group Sustainability and Group Finance and approved by the CFO.
Risk scenarios were reviewed and assessed by the Executive Committee during a dedicated Enterprise Risk Management workshop. The results were subsequently analyzed, and the overall risk exposure was discussed in plenary. The Audit Committee was then briefed, and the Board was informed of the outcomes and provided guidance on strategic risks. Belimo assesses risks and opportunities based on their nature (classification of risks and opportunities), likelihood (probability of occurrence) and magnitude (financial impact), considering any mitigating measures implemented. The financial impact of risks is quantified and classified in accordance with the following scales:
Financial impact | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Quantified impact on EBIT for the Company over 12 months in case the risk occurs | < MCHF 1.25 | MCHF 2.5 | MCHF 5.0 | MCHF 10.0 | MCHF 20.0 | > MCHF 40 | ||||||
Probability of occurrence | ||||||||||||
Quantified probability of the risk occurring over 12 months | < 3% | 6% | 12% | 25% | 50% | 100% | ||||||
In identifying and defining risks, Belimo refers to the recommendations by the TCFD on transitional risks such as technological, political, reputational and market developments. The Company has identified opportunities in the areas of products and services, resource efficiency, technology and stakeholder requirements.
Although the Company does not disclose climate-related scenario analysis in the current disclosures, Belimo is implementing new processes and measures to meet this reporting requirement in the future.
Metrics and Targets
Belimo annually measures and reports absolute GHG emissions (in tons CO2 equivalent) classified as Scope 1, Scope 2 and Scope 3 categories. GHG emissions are measured in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011) for all relevant Scope 3 categories. In addition, Belimo discloses market-based and location-based Scope 2 emissions.
In tCO2e | 2025 | 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|---|---|
Scope 1 | 542 | 610 | 525 | 606 | ||||
Scope 2 market-based | 1 414 | 1 720 | 1 735 | 1 721 | ||||
Scope 2 location-based | 3 109 | 2 244 | 2 268 | 2 278 | ||||
Category 1: Purchased goods and services | 122 406 | 100 721 | 69 227 | 100 898 | ||||
Category 4: Upstream transportation and distribution | 17 268 | 12 297 | 7 466 | 11 824 | ||||
Category 5: Waste generated in operations | 315 | 196 | 186 | 173 | ||||
Category 6: Business travel | 4 730 | 3 513 | 3 634 | 2 595 | ||||
Category 7: Employee commuting | 1 675 | 1 468 | 1 369 | 1 369 | ||||
Category 9: Downstream transportation and distribution1) | - | - | - | - | ||||
Category 11: Use of sold products | 508 916 | 501 899 | 485 716 | 572 972 | ||||
Category 12: End-of-life treatment of sold products | 4 896 | 4 565 | 4 550 | 4 373 | ||||
Total Scope 3 | 660 206 | 624 660 | 572 148 | 694 204 |
1) Transportation of previous years is now listed in Category 4
Belimo is not applying an internal carbon price in decision-making. However, as part of its Climate Strategy, Belimo supports the Belimo Climate Foundation and applies a carbon price of CHF 200 per ton CO2e to finance GHG emissions reduction through building optimization projects. Find out more about the BCF: Belimo Climate Foundation
Belimo has set near-term and net-zero reduction targets for Scope 1, 2, and 3 emissions. These climate targets align with the Paris Agreement to limit global warming to 1.5°C and are validated by SBTi. The targets apply to the entire Group, not just specific business units or geographical regions. With GHG accounting processes in place, progress toward the targets is frequently monitored internally and disclosed publicly on an annual basis.
Belimo is on track to meet its near-term GHG emission targets. All Scope 1, Scope 2 and Scope 3 GHG emissions are covered by science-based GHG emission targets. These targets are based on the total emissions produced. The targets are not derived using a sectoral decarbonization approach.
Related GRI Disclosures
Further related information can be found in the following sections of the GRI report:
IFRS S2 Topic | GRI Disclosure | |
|---|---|---|
Governance | 2-12 Role of the highest governance body in overseeing the management of impacts | |
Strategy | ||
Metrics and targets | ||