Core elements of the ESG strategy

Three focus areas

ESG is an integral part of the Komax Group’s strategy and embedded in its corporate culture. The company has embedded ESG topics consistently in its business processes. As part of this, it has defined three focus areas – Fairness, Responsibility, and Climate Protection – with which it intends to concentrate in particular on its customers, employees, suppliers, and the planet.

Materiality and material topics

Where the most progress can be made

The Komax Group is influenced by the various trends, risks, and opportunities that have an impact on long-term business success. In addition, through its activities it exerts its own impact on the environment, the economy, and society. In order to identify the key interacting and influencing factors, the Komax Group carried out a comprehensive double materiality analysis. This forms the basis for the ESG strategy.

As part of this analysis, the key stakeholders were identified as well.

The following is a brief summary of the material topics identified in the double materiality analysis. Details regarding the materiality analysis and these topics can be found in the ESG Report.

Nine topics identified as material

1
Sustainable and Profitable Growth

The Komax Group aims to achieve sustainable and profitable growth. By this it means the all-encompassing, long-term development of the Komax Group and its environment in upcoming decades, with the aim of creating value not just in the economic sense, but also in environmental and social terms. This includes:

  • A sustainable and social contribution to society
  • A long-term oriented strategy
  • Rejecting any notion of making profits at the cost of the environment
  • The responsible use of natural resources
  • A supportive work environment
  • Financial stability

2
Lean Management and Operational Excellence

If the corporate goals of the Komax Group in the area of longevity and sustainability are to be achieved, streamlined organizational and process structures are required, as is a constant willingness to improve, i.e., Lean Management and Operational Excellence. These include:

  • Continuous process optimization
  • Exchange with partners and peers for continuous learning
  • Employee training in lean management methods

3
Digital Transformation

The Komax Group is addressing the challenges of digital transformation through two closely interconnected strategic initiatives. While the SMART FACTORY by KOMAX includes digital offerings for customers, the DIGITAL KOMAX initiative is about developing the Komax Group into an end-to-end digitalized company across all processes. Within these, topics such as the following are addressed:

  • Advancments in AI
  • A growing range of digital customer solutions
  • Digital continuity and interoperability of internal systems
  • Cleaning and standardizing internal data and systems
  • Protective measures against cyber risks
  • Responsible data management

4
Greenhouse Gas Emissions and Energy Efficiency

The Paris Agreement of 2015 envisages limiting global warming to a maximum of 1.5°C, but at any rate to well below 2°C compared with the pre-industrial era. A key element in achieving these goals is the reduction of greenhouse gas emissions, above all CO₂ emissions. As part of its climate transition plan and in line with its ESG goals, the Komax Group is doing its part in this regard. It:

  • Strives to reduce total energy consumption and increase energy efficiency at its sites in order to reduce its CO₂ emissions
  • Has set a net zero target for 2025
  • Is replacing fossil fuels with renewable energy sources
  • Raises employee awareness of climate and energy issues

5
Product Life Cycle Management

The Komax Group considers all environmentally relevant aspects of its products throughout their entire life cycle. This starts at the development stage and continues into production, encompassing the materials and energy required at this point. This is followed by packaging, delivery, and the period of use at customer production sites, which encompasses servicing activities and ends with product disposal. The Komax Group manufactures several thousand machines every year, which require tons of steel and aluminum as well as wood and cardboard for packaging. In order to conserve resources and at the same time help customers to reduce their carbon footprint, the Komax Group strives to offer products that are as efficient and long-lasting as possible. It focuses on:

  • Eco design checks for its products
  • Sustainable resource management in production
  • Reduction of material usage where possible
  • Sustainable waste management that maximizes recycling and supports the circular economy model

6
Workplace Safety and Well-Being

For several years now, the labor markets at the locations of the Komax Group have been confronted by the trends of rising wage costs and a shortage of skilled labor. The ability to attract and retain talented and motivated staff is absolutely critical for a growth-oriented company like the Komax Group.

Through active and sustainable personnel management, it can increase its appeal as an employer and foster a diverse and committed staff. That’s why motivated and satisfied employees are a core part of the ESG strategy. The Komax Group addresses this by:

  • A supportive work environment where performance and personal stability go hand in hand
  • Salaries in line with market rates and social benefits typical for the sector and the respective country
  • Frequent employee motivation surveys
  • Comprehensive training and professional development opportunities
  • Targeted support and development of its employees and the provision of opportunities for their professional future
  • Measuring and improving the LTIR (Lost Time Injury Rate) to reduce workplace accidents
  • Improving well-being and health in the workplace through various initiatives and training opportunities
  • Providing financial and volunteer support to local communities
  • Implementing integrated management systems (ISO 9001, ISO 14001, ISO 45001) at all of its production sites

7
Customer Relations

Intensive, needs-based customer care is the foundation for a trusting partnership and, therefore, for business success. For the Komax Group, several elements play an important role in maintaining and improving its customer relationships:

  • Customer proximity through a global distribution and service network
  • On-time delivery
  • High product quality throughout the entire life cycle
  • An open and measurable feedback culture
  • Training to increase customer productivity
  • Frequent customer satisfaction surveys

8
Business Ethics and Compliance

The Komax Group interacts with its stakeholders in an ethical and responsible manner. These have high expectations regarding the company’s transparency, trustworthiness, timely communication, and integrity. Therefore:

  • The Komax Group has implemented a Code of Conduct as well as guidelines and regulations covering topics such as human rights, corruption, and sustainability
  • Risks are systematically identified, analyzed, monitored, and managed on an annual basis through an institutionalized risk management system
  • The Komax Group complies with local laws and regulations at all times
  • The company promotes a corporate culture characterized by integrity
  • There is an external whistleblowing office to address misconduct and concerns
  • The Komax Group protects its patents and actively enforces its rights against competitors when necessary

9
Supply Chain Risk Management

At the Komax Group, sustainability in the supply chain encompasses the socially and environmentally responsible procurement of raw materials, components, packaging, and services, as well as appropriate risk management. It addresses various procurement risks by:

  • A strict trade compliance management and responsible management of its supply chains
  • Maintaining stable long-term relationships with suppliers and conducting regular audits
  • A Code of Conduct for suppliers, as well as various guidelines, for example, on human rights, minerals and metals from conflict areas, and the prohibition of child and forced labor
  • ESG ratings for suppliers (particularly via Ecovadis)
  • Regular training on topics such as export controls, embargoes, current Incoterms, and customs and tax legislation

13 ESG targets until 2028

Moving forward with focus

The Komax Group has a long-term ambition for each of the three focus areas, and has defined 13 overarching targets for next five years in 2023. In order to attain these targets, various strategic initiatives are being pursued and comprehensive reporting established, whose progress is regularly measured and updated.

Progress in 2025

  • In 2025, we developed a detailed climate transition plan with the goal of achieving net-zero emissions by 2050.
  • We succeeded in significantly increasing the share of renewable energy compared to the base year of 2023 – from 23% to 58% – thereby already exceeding our ESG target of 50% for 2028.
  • We significantly reduced our group-wide Scope 1 and Scope 2 emissions by 707 tCO₂e in 2025, which corresponds to a 10.8% reduction.
  • We were able to reduce our global energy consumption by 768 MWh.
  • We conducted our first product life cycle assessments and gained insights into how we can make our products more sustainable.
  • Employee motivation remained at a good level despite a challenging year.
  • Our customer satisfaction remained above average compared to our industry peers.
  • All employees successfully completed training on the Code of Conduct.
  • 86% of our suppliers have already signed the Supplier Code of Conduct. We have thus significantly exceeded our interim target of 80% for 2025.

Risk management

Taking responsibility

Climate-related risks and opportunities

Addressing climate change and its consequences is an essential part of the Komax Group’s corporate responsibility. That’s why it actively addresses the associated opportunities and risks. The company pursues a climate strategy aimed at achieving net zero emissions by 2050, guided by Switzerland’s climate targets and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The Komax Group has identified various physical and transitional climate opportunities and risks (> see TCFD Report below).

Risk management

⁠The company has a systematic risk management function in place. Climate-related risks are an element of the risk matrix of the Komax Group, which comprises 13 risk categories. Climate risks were classified as a sub-area of environmental risks in the risk matrix, with their probability of occurrence and impact on revenues, EBIT, and reputation assessed in the same way as for other risks. The risk assessment process takes place once a year. Thanks to this approach and the strategy adopted in response to these risks, the Komax Group has the most resilient framework in place to combat climate-related changes. Further information on risk management can be found in the financial report.

Climate transition plan

Long-term development

Net zero target by 2050

To ensure that the Earth does not warm by more than 1.5°C and that there are no serious disruptions to the environmental system, global CO2 emissions must fall to net zero by 2050. This is shown by the special IPCC report on global warming of 1.5°C. Industrial production accounts for a significant proportion of these emissions.

Short-, medium-, and long-term goals

The Komax Group will play its part in reducing these emissions, and has developed a climate transition plan with 2023 as the base year. It plans to gradually reduce its own CO2 emissions in the areas of Scope 1 and Scope 2 to zero by 2050. The company has set itself short-, medium-, and long-term targets for this. The first short-term interim target is a 10% reduction of each Scope by 2028, followed by two medium-term targets of –30% by 2030 and –60% by 2040.

The Komax Group plans to achieve its short-term target primarily by substituting fossil fuels with renewable energies at its sites. The company has already defined targets in the areas of its own direct emissions, and purchased indirect emissions in order to sustainably reduce CO2 emissions and energy consumption.

Besides the resolute continuation of the ongoing switch to renewable energy sources, additional measures in the areas of fleet management and energy efficiency are necessary to achieve the two medium-term targets.

CO₂ emissions reduction pathway for Scope 1 and Scope 2 to net zero target

Scenario analysis

The Komax Group considered several climate scenarios to assess the impact of climate change on the company. These form the basis of the climate-related risk assessment. To assess the risks associated with climate change and relate them to the company, the Komax Group used three IPCC emission scenarios. These scenarios are explained in the TCFD report.