Focus topics

In 2021, the Executive Group Management (EGM) determined three focus topics, which have since been reaffirmed. The EGM defined clear targets for these focus topics for the coming years.

Approach

Sustainable growth

The financial health and commercial success of HUBER+SUHNER are the result of the Group's value creation, long-term and customer-focused innovation, and strong relationships with its employees, customers, shareholders, suppliers, local communities, and other stakeholders. Financial strength and economic success are prerequisites for investing in the interests of the environment and society, which in turn is an indispensable part of sustainability.

Core markets and focused market verticals are the basis of today’s business. Their turnover is crucial to secure the company in its current size and setup. The aim is to be in attractive core markets which allow the company to use all its strengths to take a strong position. Their contribution is essential to reach today’s goals and fund the growth initiatives. The business strategy includes four components that synergistically influence and strengthen each other: the entry into new markets, the ambition to strong positions in target markets, the development of innovative products and technologies, and the ability to sustain these positions through operational excellence.

Growth initiatives have been identified based on their potential for significant sales, profitable growth, and their strategic fit: aerospace and defense, data center, advanced driver assistance system (ADAS), electric vehicle, and rail communications. To succeed, HUBER+SUHNER ensures a dedicated approach, pre-investments in resources, and the formation of highly committed teams. Growth initiatives are expected to grow faster than the company and the markets. They have the potential in size and attractiveness to become core markets of the future.

Climate change and greenhouse gas emissions

The EGM decided to make climate change and greenhouse gas (GHG) emissions a focus topic because it considers this topic a crucial challenge to mankind, one that presents the company with both risks and opportunities.

In 2017, the company had two intensity-based greenhouse gas emissions reduction targets approved by the Science Based Targets initiative (SBTi). CEO Urs Ryffel officially signed the SBTi's net-zero commitment. In 2024, the company plans to submit new interim absolute targets for 2030 to reduce emissions across all three scopes to the SBTi for approval.

Community involvement and development

Community involvement and development became a focus topic because it stands out due to its many aspects. It includes the promotion of education, culture, and sports, as well as support for groups at the edge of social and workplace exclusion in the catchment area of our sites. Open, honest, and fair dealings with local and regional administrative authorities are also part of this complex topic.

HUBER+SUHNER has the goal of spending at least 0.5 % of the budgeted earnings before interest and taxes (EBIT) or CHF 500,000, whichever one is higher, for community development.

Progress

The Group is mostly on track regarding its targets. In 2024, we will review these targets and define a new target for sustainable growth.

Sustainable growth: Net sales share from growth initiatives in 2023 was 31 % (plus 5 percentage points y-o-y). The goal was to achieve 33 % of net sales from growth initiatives by 2023. Despite narrowly missing this target, our growth initiatives contributed significantly to our net sales in 2023.

Climate change and greenhouse gas emissions: In 2023, HUBER+SUHNER managed to further reduce its scope 1+2 GHG emission by 19 % (year-on-year) to 7,735 t CO2-eq and remains on track with its SBTi commitment.

Community involvement and development: In 2023, HUBER+SUHNER supported 211 community development projects with a total CHF 515,000 in the form of cash or contributions in kind, along with paid leave hours for employees involved in these projects, thereby achieving our spending goal in community involvement and development.

Table 1: Score card focus topics

Score card