Schindler's climate transition plan outlines our comprehensive approach to addressing the challenges posed by climate change.
As a global leader in the elevator and escalator industry, we are committed to reducing our carbon footprint, enhancing energy efficiency, and driving innovation in sustainable technologies.
This plan is aligned with the Paris Agreement and validated by the Science Based Targets initiative (SBTi), ensuring that our targets are scientifically grounded and impactful. By integrating near-term goals for 2030 of a 50% absolute reduction in greenhouse gas (GHG) emissions from our operations (scope 1 & 2) and a 42% reduction across our value chain (scope 3) from a 2020 baseline, Schindler is dedicated to global decarbonization efforts and achieving net-zero greenhouse gas emissions by 2040, with up to 10% remaining emissions that have to be neutralized through carbon removals.
This plan sets forth targets and initiatives to ensure that we not only contribute to a sustainable future but also create vertical transportation solutions that support the transition to a low-carbon economy.
Schindler’s Board of Directors oversees, reviews, and approves Schindler’s values and strategy, including sustainability, and receives regular updates regarding the implementation of the Sustainability Roadmap 2030. The Board of Directors also oversees the enterprise risk management process, which includes material nonfinancial risks.
The Group Executive Committee, which is chaired by the CEO and simultaneously forms Schindler's Sustainability Committee, implements Schindler’s sustainability values. Together with the Supervisory and Strategy Committee, it supervises the implementation of the Sustainability Roadmap 2030 and leads and manages the progress on sustainability, establishing operational targets, driving implementation, and ensuring integration across the business. The Sustainability Committee meets regularly as part of the regular Group Executive Committee meetings.
The CFO leads the annual nonfinancial reporting and is advised by the Global Sustainability Office, which recommends strategies for integrating sustainability into the business, including target setting, progress tracking, and external commitments. Management updates the Board of Directors about climate-related issues through a structured reporting process. Before the approval by the Board of Directors, the Nonfinancial Report is reviewed by the Supervisory and Strategy Committee and the Audit Committee.
As part of their variable compensation, members of the Group Executive Committee receive an annual performance-related cash bonus, as well as a long-term compensation component designed to reward long-term value creation, which includes sustainability criteria linked to the achievement of climate transition plan KPIs, progress towards climate-related targets and achievement of the targets, reduction in absolute GHG emissions (scope 1, 2, and 3), as well as energy-efficiency improvement.
Sustainability has been a focus of Schindler for many years. Since publishing its first sustainability report in 2013, Schindler has made notable progress in its sustainability journey. In the past years, building upon the strategic foundation laid by its 2018 Sustainability Roadmap, Schindler has been proactive in addressing climate-related issues, setting ambitious targets for GHG emission reinforcing Schindler's dedication to aligning its operations with a 1.5-degree pathway outlined in the Paris Agreement. Schindler's transition to a low-carbon economy is anchored in its ambition to achieve net-zero emissions by 2040. To support this ambition, Schindler has developed a climate transition plan. This plan is an integral part of, and aligned with, Schindler’s Sustainability Roadmap 2030 as well as its business strategy.
In 2024, Schindler adopted its new Sustainability Roadmap 2030 to strategically steer its sustainability efforts over the next six years. It identifies nine focus areas, each with specific targets and metrics, aimed at improving energy efficiency, managing resources responsibly, and enhancing social responsibility.
Our strategy also incorporates climate risk assessments to address the impact of climate-related challenges on the business. The climate risk and opportunities assessment methodology employed by Schindler includes a comprehensive, structured approach to identify, prioritize, and evaluate climate-related impacts across various emissions scenarios and time horizons. The risks and opportunities selection process starts with the identification and categorization of a long list of potential risks and opportunities following the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Each risk and opportunity is described by its risk driver, transmission channel and potential impact channel to Schindler’s financial performance. This list is then further refined using objective criteria – such as likelihood and impact scores – to produce a shortlist of the most relevant risks and opportunities for Schindler.
From this shortlist, the six most material risks and opportunities were finally selected for in-depth, climate scenario analyses as stated in the table below. These analyses involved modeling specific climate-related scenarios and a quantification of their potential financial impacts. Physical-risk scenarios were based on the established IPCC Representative Concentration Pathway (RCP) scenarios.
| Climate related risk / opportunity | Brief description | |
|---|---|---|
| Physical risks | Acute | Damage to consolidation hubs, production sites, and office facilities |
| Physical risks | Acute | Disruption to consolidation hubs and production sites |
| Transition risks | Market | Increased energy pricing for Schindler and its suppliers |
| Transition risks | Policy and legal | Increased exposure to carbon cost |
| Transition risks | Technology | Increased costs for transitioning to low-emission materials |
| Transition opportunity | Technology | Increased use of low-impact materials |
These six risks and opportunities were evaluated based on their impact on strategy, business operations, and financial planning. A climate scenario analysis was completed for each using three time-horizons (near, medium, and long-term) and three emission scenarios (low, moderate, and high). The result determined the focus of the climate transition plan on redesigning our products with low-emission materials. Further information will be available in Schindler’s Nonfinancial Report 2024 after its publication on February 12, 2025.
The emissions due to operational infrastructure mainly arise from the vehicle fleet, buildings and processes, refrigerants, purchased electricity, and district heating account for 1% of emissions. Carbon lock-in occurs when fossil fuel-intensive systems delay the transition to low-carbon alternatives. This will not jeopardize Schindler’s ability to meet our SBTi-targets, since it is mainly considered in our fleet and buildings that are an integral part of our decarbonization pathway.
Initiatives to reduce fleet emissions are increasing the share of hybrid and electric vehicles, using telematics to improve efficiency, and running pilot programs to optimize logistics to allow for smaller vehicles. CHF 30 million is planned to be spent on electric and hybrid vehicles globally in 2025.
For Schindler owned company facilities, we are conducting energy efficiency audits at production sites, assessing renewable energy opportunities, e.g. by increasing solar panel capacity, and upgrading aging equipment (chillers, boilers, compressors). At least CHF 5 million is planned to be invested in 2025 to install solar panels at various sites. In leased buildings, we will rent offices with high-energy efficiency standards. We will also switch to low Global Warming Potential refrigerants and explore opportunities for district heating and cooling.
Our value chain emissions are mainly due to the use of sold products (70%) and purchased goods and services (27%). The remaining scope 3 emissions consist of employee commuting, end-of-life treatment of sold products, upstream transportation and distribution, and business travel.
We reduce the emissions of sold products by optimizing the energy consumption and improving transparency by providing environmental product declarations (EPDs). We are continuing to roll out the A-class energy rating modular elevator product line and expand our low-carbon service contract offering. For purchased goods and services, we are strengthening our policies on sustainable procurement and improving the material footprint of our products.
We are implementing the circular economy considerations in product development. We have refurbishment hubs available in several countries and are enhancing the refurbishment process for spare parts to address the end-of-life treatment of sold products to avoid the procurement of new materials and components. In upstream transportation and distribution, we are optimizing routes and shifting to alternative fuels. To internalize economic cost of greenhouse gas emissions and to incentivize sustainable internal decision making, we are developing an internal carbon pricing strategy. These mechanisms will be integrated into our financial and operational planning to channel investments and reduce emissions.
Engaging with our suppliers is key for decarbonization and starts with improving data quality to refine the calculation approach for emissions related to purchased goods and services. Improved data quality about suppliers and their product emissions as well as information on their sustainability programs, will allow Schindler to reflect the decarbonization pathway of our suppliers in our calculations, and thus manage our related emission reduction more accurately. Our responsible sourcing policy and EcoVadis’ assessment of suppliers also support integrating sustainability across the supply chain. The 2024 EcoVadis assessment covers suppliers representing 81% of production material factory spend.
Partnering with organizations keeps us updated on new developments which can help us achieve our targets. We joined the World Business Council for Sustainable Development in 2023 as part of the Built Environment working group to engage in and address on the challenges our sector faces. Since 2012, we aligned our sustainability reports with GRI standards and updated its materiality assessment according to the revised standards in 2023. In 2024 we have reperformed our materiality assessment according to the Corporate Sustainability Reporting Directive (CSRD) standards for Double Materiality Assessment, to prepare for the implementation of CSRD in 2025. We are a member of the UN Global Compact Switzerland & Liechtenstein. As a RE100 member with approved SBTi targets, we support the goals of the We Mean Business Coalition.
The scope of Schindler’s Nonfinancial Report 2024 covers the information required by article 964b of the Swiss Code of Obligations (CO), the Swiss Ordinance on Climate Disclosures, and complies with the recommendations of the TCFD.
Our corporate carbon accounting (scope 1, 2, and 3) follows the guidelines of the Greenhouse Gas Protocol: a Corporate Accounting and Reporting Standard (revised edition, 2004). PricewaterhouseCoopers AG has performed assurance procedures to provide limited assurance on the scope 1, 2, and 3 accounting. Additionally, we respond annually to the Carbon Disclosure Project (CDP) Climate Change and EcoVadis questionnaires to continuously assess our sustainability practices and progress.
This climate transition plan (the "Plan") has been prepared by Schindler Group and the opinions expressed therein are those of Schindler Group and/or its subsidiaries (collectively and individually “Schindler”) as of the date of writing and are subject to change without notice. This Plan is not intended to be legal, underwriting, financial, investment or any other type of professional advice. Schindler disclaims all liability whatsoever resulting from the use of or reliance upon this Plan.
The analysis and data as well as metrics, targets and ambitions described in this Plan are subject to uncertainties and limitations in measurement and data availability due to restrictions given their nature and methods used to calculate and determine them. All information contained in this Plan has been compiled and obtained from sources believed to be reliable and credible but no representation or warranty, express or implied, is made by Schindler as to their accuracy or completeness.
Certain statements in this Plan are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans, developments, targets or objectives of Schindler, including the methodologies and scenarios used and the ability to meet those targets or objectives at all or within expected timeframes. No undue reliance should be placed on such forward-looking statements, as by their nature, they are subject to known and unknown risks and uncertainties, which are beyond Schindler’s control. For additional information on sustainability related matters please refer to our most recent annual report, which can be found on Schindler.com. This Plan may not be distributed or reproduced in whole or in part without prior written permission of Schindler.