Environment

Policies

ESRS 2 MDR-P; E1-2

Decarbonisation is a strategic priority for us, driven by our Environmental Management- and Energy Policies, which align with International Organization for Standardiazation (ISO) 14001 and ISO 50001 standards. These policies are the foundation of our efforts to mitigate climate change, enhance resource and energy efficiency, and promote the use of renewable energy. Our commitment extends across the entire value chain and is reinforced through our Procurement Policy, Supplier Code of Conduct and Product Evolution Process (PEP). We collaborate closely with suppliers and customers to address climate impacts. We evaluate the effectiveness of our policies using clearly defined metrics and targets. Progress is continuously reviewed through site-level meetings, process reviews, and audits to ensure continuous improvement.

Targets

ESRS 2 MDRT-T; E1-1; E1-3; E1-4

In 2016, we committed to a science-based GHG reduction target for Scope 1+2 and 3 emissions by 2025, validated by Science Based Targets initiative (SBTi) experts. Originally aligned with the 2 °C goal, the target for Scope 1+2 was revised in 2019 to meet the stricter 1.5 °C criteria. As the original target period concludes in 2025, we submitted updated targets covering all three scopes in 2024. These were approved by the SBTi in January 2025 and set us on a clear path toward achieving net-zero emissions by 2050. To support our climate targets, we employ a 1.5 °C climate scenario as a strategic framework to navigate developments across dimensions, like technology, market, and policy. This scenario informs key decarbonisation levers, such as efficiency of our own operations, sustainable supply chain, and our product portfolio.

In addition to our emissions reduction targets, we have committed to reducing our global energy intensity by 15% by 2030, using 2021 as the baseline year.

In 2024, we set 2023 as our baseline year for the new near-term climate targets. The baseline – 7’735 tCO2eq in Scope 1+2, 189’920 tCO2eq in Scope 3 – reflects our current organisational structure and strategic direction, enabling more accurate progress tracking. It covers 99% of Scope 1+2 emissions and 74% of Scope 3 emissions across our global upstream and downstream operations. The target boundary includes land-related emissions and removals from bioenergy feedstocks.

In 2023, we conducted a comprehensive Scope 3 screening covering 97% of our total emissions. Due to data quality limitations, we exclude capital goods, use phase, and end-of-life (EOL) from our SBTi-approved 2030 Scope 3 target, though we remain committed to improving data accuracy. Unlike many electronics firms, we primarily supply passive components with minimal use-phase emissions – mainly power cables used in Europe’s low-emission rail sector. Active components, such as antennas and optical equipment, represent a small portion of our portfolio. The baseline for our net-zero target is 248’141 tCO₂-eq and also covers the use-phase.

Our ability to meet the 2030 target for Scope 3 depends on several external factors beyond our direct control. These include the pace of transformation across the value chain, the availability and demand for low-carbon materials, and access to reliable supplier data. These elements are critical in shaping our emissions reduction pathway and underscore the importance of collaboration and transparency throughout our supply chain.

Actions and resources: climate transition plan

ESRS 2 MDR-A; E1-1; E1-2; E1-3; E1-4; E1-6; E1-7; E1-8

Our climate transition plan, which was approved by the EGM and BoD in 2024, is fully embedded in our business strategy. The plan initially focuses on reducing emissions in line with our validated SBTi targets by 2030, and from 2040 to 2050, we will address remaining emissions through targeted reductions and carbon removals. All significant financial requirements, including capital allocation for targeted reduction measures, are embedded within our standard budgeting and investment processes. This ensures that consistent decision-making criteria are applied across all initiatives.

To determine targeted decarbonisation measures for our Scope 1 and 2 emissions, a cross-functional team conducted a detailed assessment of our five largest and highest-emitting sites. The team identified a range of emission reduction opportunities with the potential to reduce emissions by approximately 5’500 tCO₂-eq by 2030, along with the corresponding emissions reduction costs. As a result of this initiative, we plan to invest CHF  3 million in capital expenditures (CAPEX) through 2030, along with an additional annual operating investment of CHF  450’000 to upgrade production processes and infrastructure and further reduce emissions. Our Scope 1+2 target focus on renewable energy generation, waste heat recovery for heat integration, energy efficiency improvements, as well as process redesign and electrification. In 2025, we implemented transition plan projects with an investment of CHF 1.25 million. The resulting Scope 1 and 2 emission reductions could not yet be reliably quantified for 2025, as several measures will only deliver measurable impacts in subsequent years. We align our Scope 3 reduction efforts with our sourcing policies, focusing on Purchased goods and services, the largest contributor. Our regional-for-regional sourcing strategy helps keep transport emissions low, while continuous improvement initiatives under our lean management programme support material reduction.

We have mitigated the risk of locked-in emissions in our product portfolio, as we have no significant capital expenditure (CAPEX) investments in fossil fuel–related economic activities. On the infrastructure side, we have ceased investments in fossil fuel heating systems and are phasing out existing ones.

We apply a shadow carbon price to guide the Group’s broader decision-making process, assessing the financial impact of carbon emissions and influencing decisions accordingly. The fixed price was increased to CHF 750 per ton CO₂ in 2022, reflecting the cost of permanent removal. The carbon price serves exclusively as a management tool to guide decision-making. Being indicative and not based on actual emission costs, the GHG volumes in Scopes 1 to 3 covered by the scheme cannot yet be disclosed; however, we are refining the methodology to enable more detailed and transparent reporting in the future.

In 2025, our largest Polish factory achieved ISO 50001 certification, enhancing energy efficiency and reducing costs. We do not currently plan to systematically use biofuels and therefore report no relevant biogenic Scope 1 emissions. 75% of location-based Scope 2 emissions were offset by EACs, fully comprised of unbundled Renewable Energy Certificates.

Methodologies and assumptions

E1-5; E1-6

Our reporting period is the calendar year 2025. In cases of expected disproportionate delays in evaluation, the data for December 2025 were estimated. We estimate the deviation from the calendar year period to be less than ±5%. We continuously strive to improve data quality and granularity.

In 2025, the definition of “intensity value” was updated from “added value” to “net revenue” (“net sales” in the financial report). Previously, “added value” was used to calculate GHG and energy intensity.

All entities under the full operational control of HUBER+SUHNER Group have reported at a minimum their energy consumption and employee commuting data for carbon footprint calculations. Energy consumption reporting includes all fuels used in manufacturing processes, heating, and in both owned and leased vehicles. For certain rented buildings, energy usage is estimated based on floor area. The electricity mix is estimated based on the mix declared by suppliers, using the previous year as a proxy, along with the EACs procured. We apply an inventory analysis based on input-output models. Each production site is considered a unit into which energy and materials enter (input) and from which emissions, waste, wastewater, and products are generated (output).

Based on our 2023 screening, we report only the material Scope 3 categories that meet sufficient data quality standards with a reasonable level of certainty. Seven of the 15 categories are included in our emissions inventory (see Table 6). The remaining categories – also excluded from our SBTi target – each contribute less than 5% of total Scope 3 emissions but carry high uncertainties, particularly regarding the use-phase emissions of power cables, where end-use applications are unclear. Additionally, some categories are not applicable, as we do not engage in franchising and have no leases or investments.

For Scope 3 emissions, we apply tailored, data-driven methods to each category, ensuring accurate, transparent reporting that reflects the unique characteristics of each source. Purchased goods and services are primarily sourced externally, with certain plastic compounds produced in Pfäffikon (CH) and processed in Pfäffikon (CH), Changzhou (CN) and Herisau (CH). Quantities are tracked through the Enterprise Resource Planning (ERP) system.

Upstream transport and distribution emissions are calculated based on transport distances between supplier sites and our locations, determined using postal codes. Air freight is the primary source of emissions in this category. Emissions from waste are calculated based on site-level waste volumes, categorised by type, using 100% company-specific data to ensure accuracy and consistency. Data for business travel is collected via a centralised travel system and spend management tools, using 100% activity-specific data from transport providers. Commuting emissions are driven mainly by car use, with site-specific patterns and home-office setups taken into account. Emissions from downstream transport are calculated based on centralised supply chain data, covering air, rail, road, and marine transport. Air freight and trucking are the main contributors. We use the latest activity data to measure and disclose emissions. Relevant data is provided to an external service that calculates the carbon footprint.

Global warming potentials (GWP) factors from the Sixth Assessment Report of the UN Intergovernmental Panel on Climate Change (IPCC) have been applied, in line with recommendations from the Greenhouse Gas (GHG) Protocol and Carbon Disclosure Project (CDP). The GHGs accounted for include carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF₆), and nitrogen trifluoride (NF₃), as listed in the amended Annex A of the Kyoto Protocol. Emissions are expressed in tCO₂-eq for standardised reporting. Calculations are performed using the expert system REGIS. Emission factors are derived from published GHG inventories and current ecoinvent versions, with IPCC2013 used before 2022 and IPCC2021 from 2022 onwards. We updated the 2025 background data using v3.12 of the ecoinvent data, released at the end of 2025. The percentage of Scope 3 GHG emissions calculated using primary data is 36%.

The Group does not have any GHG emissions subject to regulated emissions trading schemes. However, HUBER+SUHNER AG is a participant in the Swiss Energie-Agentur der Wirtschaft (EnAW) programme, which supports long-term agreements focused on energy efficiency and CO₂ reduction targets.

We quantify CAPEX based on actions in our transition plan and major investments outside it. Ongoing upgrades to processes and infrastructure at all sites, aimed at improving resource efficiency, are not captured within this CAPEX. We are not yet able to quantify the impact of these measures on operational expenditures (OPEX). Future disclosures will provide greater transparency.