2023 Sustainability Report
An overview of Hilti's commitment and initiatives towards sustainability in the year 2023.
2023 Sustainability Report
CONTENTS 3 Editorial 55 For Our Society 4 Sustainability Management 56 Business Ethics 61 Social Impact 12 For Our Environment 65 About this Report 13 CO22 20 Circularity 68 Auditors’ Limited Assurance Report 27 Environmental Protection 70 GRI Content Index 31 Supplier Sustainability 36 For the People 75 Publication Details 37 User Health and Safety 40 Sustainable Building 44 Our Culture of Engagement 51 Employee Health and Safety
Editorial Dear Readers, 2023 was another exciting year in our sustainability journey: our path to net zero 2050. In 2022, we journey. With the global rollout of our Group Strategy committed to the Science Based Targets initiative, Lead 2030, sustainability has become 昀椀rmly anchored which engages companies worldwide to signi昀椀cantly across our business. We have expanded our reduce their total carbon footprint. In 2023, we sustainability ambitions beyond our own operations by diligently formulated a comprehensive set of measures making them part of our customer promise with the aim linked with targets throughout the organization, which of being our customers’ best partner for productivity, we will submit for validation in 2024 to the Science safety and sustainability. Here are some of the Based Targets initiative. In terms of societal impact, our ‘Engaged Beyond highlights of what we achieved in 2023 across our three Business’ corporate volunteering initiative saw more strategic sustainability pillars: environment, people Within our circularity program, deemed pivotal for than 11,000 team members contributing roughly and society. achieving our science-based targets, we expanded 72,000 volunteer hours for over 850 social and initiatives throughout the cycle. We systematically environmental projects. Alongside our team members’ In pursuit of our 昀椀rst concrete CO target, we reached integrated sustainability into product design and further eagerness to make an impact via our corporate 22 expanded tool reuse options to include batteries. volunteering program, the long-standing social carbon neutrality within our operations by the end of 2023, reducing 60% of our Scope 1 and 2 emissions We developed proprietary software that allows us to engagement of the Hilti Foundation demonstrates our compared to a baseline set in 2019. The remaining plug in batteries that have been collected and assess dedication to making a positive impact in the society 40% are offset through projects developed exclusively whether they meet the criteria for having a second we live and work in. for Hilti in collaboration with the Hilti Foundation and an life. These structural developments are represented in external partner. The projects have been successfully the improvements of our qualitative Circularity Score, In summary, Hilti’s sustainability journey is marked by implemented and the CO22 savings are being monitored which helps assess the details of circular economy the noteworthy achievements mentioned earlier and a and veri昀椀ed by external parties. All our projects implementation within our company. plethora of others that await your exploration within this undergo third-party veri昀椀cation which is conducted report. As I review the consolidated developments and in accordance with either the “Gold Standard” or the Our commitment to the well-being of our people data-driven progress of our sustainability program, I am “Verra Veri昀椀ed Carbon Standard” for offsetting projects. remains high. The rollout of our safety mindset extremely grateful to our Hilti colleagues, customers roadmap continued with workshops and communication and partners for their continued support on this journey While reaching CO22 neutrality within our operations measures. These actions supported the reduction of to make construction better. marks a signi昀椀cant milestone, we have already the lost time incident rate in our own operations by 9%, embarked on the next step of our CO reduction having already fallen by 17% in the previous year. Peter Rupp 22 Head of Corporate Sustainability
Sustainability Management Our purpose, “Making Construction Better”, is of sustainability in our operations and business linked with our aim to “be our customers’ best processes. In 2022, sustainability became a core partner for productivity, safety and sustainability”. element of our new Group Strategy Lead 2030. Since the 2020 昀椀nancial year, we have voluntarily reported with reference to the Global Reporting Initiative (GRI) standards, demonstrating our governance structure, the integration of sustainability Construction is the largest industry globally. About relationships and the trust that our customers put into into our corporate strategy and disclosing our 15 percent of global GDP is generated by construction our brand make us best positioned to drive this change. performance in our strategic sustainability pillars and about 10 percent of global employment is in This de昀椀nes our purpose, “Making Construction environment, people and society. Our auditor, construction. Construction covers one of the basic Better”. Better means improved productivity, safety PricewaterhouseCoopers AG, has provided limited human needs and touches practically everyone living and sustainability. Our strategic objective – value assurance on sustainability metrics, such as on our planet. Construction, however, faces signi昀椀cant creation through leadership, built on differentiation and Greenhouse Gas Emissions, Energy Consumption challenges. Amongst others, it is one of the largest direct customer relationships – illustrates our aspiration and Lost Time Incident Rate, since the 2021 reporting sources of carbon emissions worldwide and is the to create value for all stakeholders and to make a period. We initiated a project in 2023 to prepare for the industry with one of the highest numbers of work- positive contribution to society. mandatory sustainability reporting introduced by the related health & safety issues. To overcome these European Union’s Corporate Sustainability Reporting challenges, the construction industry is transforming. We want to secure long-term success by valuing Directive (CSRD), starting with the 2025 昀椀nancial year. Sustainability is becoming an important ingredient ecological, people and social aspects along with A second project has been initiated in response to for our customers’ success whilst health & safety is economic factors. In 2020, we laid an important the European Union’s Taxonomy regulation. It aims to moving up the agenda. foundation by developing a holistic sustainability identify and quantify taxonomy-eligible and taxonomy- strategy and anchoring sustainability throughout the aligned economic activities within the Hilti Group. It is our aim to play a key role in driving this organization. In 2021, we extended our sustainability We will publish this information as part of our CSRD transformation. Differentiation, direct customer governance and focused on the implementation reporting also starting with the 2025 昀椀nancial year.
Lead 2030 Our Understanding of Sustainability Environment Umwelt People Society Menschen Gesellschaft Securing long-term success through a business strategy that values ecological, people and social aspects along with economic factors.
Our sustainability strategy We aim to provide more sustainable products to our in the product life cycle, like Fleet Management and customers. In order to achieve this, we have a strong our repair services. Health and safety complement We strive to become our customers’ best partner for commitment to reduce carbon emissions in our our sustainable offering. These help in creating a safe sustainability. This is at the core of our strategy. In operations and our supply chain. We have set our near- working environment, an aspiration that extends to order to achieve that, we are accelerating our existing term target to reduce 30 percent in our Scope 1, 2 and our own team members. In everything that we do, activities to make Hilti a more sustainable company 3 emissions by 2032, in line with the Science Based we aim to ensure the highest standards in business while also increasing our focus on making our Target initiative (SBTi), and we aim to reach net zero by ethics, both in our own operations and within the entire customers’ business more sustainable. 2050. We have also expanded our offering to support product value chain. To contribute to a better society building methods with a lower carbon footprint. We beyond our value chain, we aim to create social impact continue to accelerate our investment in circular at scale with our corporate volunteering program solutions that create lower amounts of waste and and together with the Hilti Foundation, our integrated lower energy consumption. One additional way we partner for sustainability. support our customers is through relevant services Our Global Priorities Environment People Society Customers Low carbon footprint solutions User health and safety and Highest standards in Best partner for: Circular solutions building safety business ethics Reduce CO22 emissions in line with Science Lead in employee health Hilti: Based Target initiative and safety Create social impact at scale Role model for circularity in our operations
Materiality assessment Our Materiality Matrix During the development of our sustainability strategy, we carried out a materiality analysis to identify the Environment People relevant topics for our organization. These topics stem Society from initiatives such as the UN Global Compact, the UN Sustainable Development Goals, various studies, ery high GLOBAL PRIORITIES and the survey and analysis of responses from both V internal and external experts and stakeholders. We CO evaluated this large number of topics in terms of 22 GLOBAL TOPICS their relevance for business success and respective Circularity stakeholders as well as their impact on the environment Waste and society. While the impact and relevance for User Health & Safety Hazardous Substances stakeholders were assessed by external experts, LOCAL INITIATIVES Building Safety we conducted interviews and an internal survey Contaminant Emissions regarding business relevance. The results are part of Employee Health & Safety s Stakeholders Plastic Consumption the foundation for the topics that are material to our Water Ef昀椀ciency Social Impact company. We have grouped the topics according to Employee Nutrition Supplier Sustainability their relevance into “Global Priorities” and “Global Business Ethics Topics” (see illustration on the right). The engagement Engagement in Local Employee Engagement of our team members at a local level plays a central Communities Learning & Development Relevance for Hilti’ role in the implementation of our sustainability strategy. Inclusion & … and many more Work-Life-Balance Diversity Accordingly, the global priorities and global topics are supplemented by numerous local initiatives. We have assigned all our material topics to one of our three strategic sustainability pillars – environment, people and society – and have evaluated our High impact on achieving the United Nations Sustainable Development Goals (see p. 8). High Very high Impact and relevance for the long-term success of Hilti
With the adoption of the EU’s Corporate Sustainability Strategic UN Sustainable Development Goals: Reporting Directive in late 2022, the concept of double action 昀椀eld our prioritization materiality was introduced. A double materiality analysis is the process of identifying and prioritizing sustainability topics from an outside-in and inside-out perspective. Material topics are those that (may) trigger material 昀椀nancial effects on our development (outside- in), or through which we (may) have a material impact on society or the environment (inside-out). This analysis is required by the CSRD and is an essential 昀椀rst step Environment towards regulatory compliance. We started our double Umwelt materiality analysis in 2023 and intend to 昀椀nish it by mid-2024. The analysis is the basis for updating our sustainability strategy and de昀椀ning the scope of our future sustainability reporting. Our sustainability results are assessed annually by the international, independent sustainability rating agency EcoVadis, which is recognized as a globally accepted standard for holistically assessing the sustainability performance of companies in the categories of People Environment, Labor Practices, Fair Business Practices Menschen and Sustainable Procurement. For the third year in a row, we achieved a gold rating and are thereby ranked among the top 5 percent of more than 100,000 companies evaluated by EcoVadis worldwide. Society Gesellschaft
Responsibilities for accountable action A Our Corporate Sustainability Team (A) reports Corporate Sustainability Team directly to the CEO. It drives and oversees the global orchestrates, integrates, supports sustainability program, acts as an interface for all + relevant parties and supports the implementation of Customer Sustainability Management Team initiatives. Our Customer Sustainability Management coordinates sustainability offering Team has the primary focus of making our customers’ business more sustainable. The team coordinates all aspects connected to our sustainability offering. It is anchored in one of our global business units B Topic responsibles and acts in close collaboration with the corporate drive concept development, provide guidance, collect data sustainability team. Sustainable Building: p. 40 Employee We have de昀椀ned strategic and operational User Health Building Health & Social Business Global responsibilities within the organization for all CO2 Circularity & Safety Safety Safety Impact Ethics Topics 16 global priorities and topics (B). Furthermore, we have established responsibilities in the different Regions/ organizational units (C) and in corporate functions, Market to promote a stronger anchoring and exchange of organizations information within the Group. In all our regions and in Business some local organizations, sustainability managers units implement our sustainability roadmap locally and act as the counterparts to the corporate sustainability Plants team. Furthermore, they act as sustainability employee engagement managers and ensure Global continuous sustainability learning within the region. logistics Several regional customer sustainability managers Operational units collaborate with the global customer sustainability C localize, plan, implementService team to integrate the existing sustainability offering into centers the launch of new products and salesforce training. This helps to identify and consolidate sustainability More trends and customer needs and to establish trustful, innovative partnerships for new sustainable solutions = D Sustainability communities for the construction industry. ensure cross-functional implementation into business processes
To support the integration of sustainability in the In dialog with our stakeholders We have intensi昀椀ed the exchange with our key various business processes within our value chain, we accounts on sustainability-related topics, which is have established thirteen sustainability communities We put great emphasis on regular communication and facilitated by our Customer Sustainability Management (D). Each community is led by an expert in the dialog with our internal and external stakeholders. Team, as well as the regional or local customer respective area. The expert involves team members sustainability managers. from across the organization, for example in regular Direct and regular on-site contact with our customers community dialogs and in workshops, and by providing has always been a distinct element of our business In addition to customers, our team members are digital platforms or playbooks. model. Our team members in the 昀椀eld interact with an important stakeholder group. We promote regular our customers in more than 280,000 individual exchanges within the workforce not only in the The Strategic Sustainability Steering Board (formerly contacts each day. In our direct sales model, there daily working environment, but also through various Sustainability Council) is the advisory body for our are no intermediaries between our customers and internal media and event formats. We survey our team activities. It meets three times a year and provides the end users of our products and solutions. Hilti members about their engagement with Hilti in the strategic advice and support on cross-functional supports construction professionals from the planning annual Global Employee Opinion Survey (GEOS), challenges. It is chaired by the CEO and includes the phase, through consulting and software engineering which also asks team members about their perception heads of the two largest regions and business units, applications, to the construction, maintenance, of Hilti’s sustainability efforts. In the reporting year, our as well as the heads of the legal, human resources, and demolition of a building by supplying tools, team members’ positive perception of the statement logistics, manufacturing and communications fastening consumables, software and services. “Hilti is a socially and environmentally responsible departments. In addition, to ensure operational The trades we serve are building & construction, organization” increased by 1 percentage point to oversight of initiatives concerning sustainability 86 percent – the fourth increase in four years. mechanical & electrical engineering, civil engineering, data management, steering and reporting, quarterly interior 昀椀nishing, installation, energy & industry, Sustainability Project Review Meetings (PRM) renovation and rental. We aim to have long-term Additionally, we involve our team members through were initiated in 2023. The PRMs are chaired by relationships with our customers in more than events and dialog. To promote sustainability within the head of corporate sustainability and include the 120 countries in which we operate. the company, a sustainability learning platform head of one business unit, as well as the heads of is available for all team members around the globe. global aftermarket services, controlling, operational Besides the direct contact through our account Besides bringing sustainability knowledge to all team excellence, compliance, and IT. managers, we also communicate with our customers members, we want to help them 昀椀nd out how they on a daily basis via customer service, by phone and can contribute to sustainability individually in their e-mail, in Hilti Stores or digitally via our website and private and professional environment and to enable social media. We systematically ask for our customers’ them to engage with our customers on the topic. An opinions once a year as part of customer surveys. integrated and integral part of our practical learning is our Engaged Beyond Business corporate volunteering program. Our Culture of Engagement: p. 44; Social Impact: p. 61
We work internationally with many suppliers and Sustainability data management, In our commitment to assisting customers in their business partners. It is important for us to build steering and reporting journey toward sustainability, we are enhancing partnerships on equal terms and engage in regular transparency regarding the sustainability performance personal discussions. Our cooperation is based on In 2023, we formed the sustainability data of our products. Throughout the reporting period, we the highest ethical standards, which are set out in our management, steering and reporting program. re昀椀ned the life cycle assessment (LCA) process for our Code of Conduct for Suppliers. Before embarking A cross-functional team of experts is working on products. LCAs serve to illustrate the environmental on a business relationship with us, suppliers must streamlining, enhancing and extending the collection impacts of our products and are frequently requested contractually agree to follow our principles against of product and corporate sustainability data to by our customers in the construction industry. bribery and corruption, the violation of human rights, ultimately facilitate internal sustainability steering, Additionally, we have expanded the accessibility of and to be in favor of humane working conditions and external corporate sustainability reporting and product LCAs for our products, now encompassing 40 percent minimum wages as well as environmental protection sustainability transparency. of our portfolio. and the correct handling of hazardous substances. In terms of speci昀椀c human rights, our suppliers commit, To enhance our group steering and complement for example, to eschew slave labor, servitude, forced our understanding of value creation, we started to or compulsory labor and human traf昀椀cking, to pay introduce a new metric called Value-to-Society. This minimum wages and not to make use of child labor. metric assesses our contribution to the environment, Regular audits are conducted to assess compliance people and society, comprehensively quanti昀椀ed in with our Code of Conduct for Suppliers. We also monetary terms. We are working on integrating Value- work together with various research institutes to-Society into our performance management system. and universities and are engaged in sustainability- This monetized impact valuation also provides valuable related associations and working groups, such as input to identify material topics as part of the double the Conference Board’s Corporate Responsibility materiality analysis under the Corporate Sustainability and Sustainability Council, and we are an actively Reporting Directive. Starting with the 2025 昀椀nancial committed member of the UN Global Compact year, our external reporting will be enhanced Switzerland/Liechtenstein. by following the requirements of the European Supplier Sustainability: p. 31; Business Ethics: p. 56 Sustainability Reporting Standards, which were introduced under the CSRD.
For Our Environment CO Neutrality 10,000 to 2 SBTi 160,000 achieved in own operations Targets set throughout Increase in number of spare parts (Scope 1 and 2) and business travel organization to reduce reused in repair in three years Scope 1, 2 and 3 emissions in line with Science Based Target initiative
At a Glance For a Better • Achieved carbon neutrality goal within our own operations plus business travel • First delivery of certi昀椀ed CO offsets by own 22 projects • Commitment to reduce carbon emissions in Climate line with the Science-Based Target initiative, and to achieve net zero emissions by 2050 CO 22 In 2020, we set out to achieve carbon neutrality in our Management approach Organizational anchoring operations and in business travel by 2023. We reached this milestone through emission reduction, replacement Managing our CO22 emissions holds signi昀椀cance not Our carbon emissions are monitored and managed of fossil energy sources, our own production of green only in our day-to-day operations but also for informed by the Corporate Sustainability Team, which reports electricity and offsetting. Compared to a scenario decision-making and shaping our company’s strategic to the CEO. The executives responsible for CO22 are without mitigation measures, we saved 60 percent actions. In 2023, we unveiled our new Group Strategy the Head of Corporate Sustainability and the Head of CO emissions (vs. 2019 baseline) and offset the Lead 2030, formulating our customer promise aiming of Finance. Furthermore, there are regular exchanges 22 to be the best partner for sustainability by placing in several internal online communities, such as remaining 40 percent of CO emissions with our own 22 CO the sustainability in development, sustainability certi昀椀ed offsetting projects. This is an important step 22 emissions reduction at the core of our strategic toward our goal of net-zero emissions by 2050, aligning objectives. Beyond our own operations, we assess in facilities, sustainability in transportation and with the 1.5-degree pathway of the Science-Based and mitigate CO22 in our value chain both by engaging sustainability in procurement communities. These Target initiative (SBTi). with our suppliers and by aiming to be the best groups drive initiatives to reduce CO22 emissions, Company Report partner for our customers in providing low-emission for example by changing our vehicle 昀氀eet from construction solutions. We regularly engage with our gasoline and diesel engines to electric drives and relevant stakeholders to ensure that their feedback, hybrid vehicles, enhancing the energy ef昀椀ciency in needs and suggestions for improvement are given due our facilities or raising the focus on carbon reduction consideration. within our supply chain. The purpose of these
Direct and indirect CO emissions communities is to share best practices, exchange 2 2 experience, establish standardized processes and incl. business travel in 2023 support the development of common environmental guidelines, helping to decentralize and anchor Scopes 1 and 2 environmental protection measures within Hilti’s business processes. Environmental Protection: p. 27 Energy Logistics Centers Energy Hilti Stores 2% (2 kt) 1% (1 kt) Management systems and policies We have a group-wide environmental policy in place. Energy MO Buildings Energy Repair Centers The topic of CO22 emission reductions is anchored in 1% (1 kt) this policy, which sets the strategic approach to climate 2% (2 kt) protection. All our plants, our headquarters facilities and nine of our market organizations are certi昀椀ed for environmental management according to ISO 14001. Energy Plants Moreover, our plants in Kaufering and Nersingen, Germany, as well as in Kecskemét, Hungary, have a 3% (3 kt) certi昀椀ed energy management system in accordance with ISO 50001. 97 kt Environmental Protection: p. 27 Fuel (cars) 69% (67 kt) 2023 implementation examples Our strategy to become carbon neutral in our own operations, including business travel, in 2023 involves reducing energy consumption and transitioning to green energy sources. Consequently, we have managed to reduce emissions by approximately 11 60 percent when compared to a scenario without these Business travel Scope 3 mitigation measures on our 2019 baseline. To address 22% (21 kt, of which approx. 16 kt 昀氀ights) These include emissions from purchased the remaining 40 percent of emissions, we rely on our products and services as well as proprietary offset projects. transport and logistics by third parties. 11 Business travel is part of Scope 3 emissions, but is also considered in the climate neutrality target.
Reduce Replace • We aspire to transition our global vehicle 昀氀eet to more sustainable solutions. During the reporting Our topmost priority is the reduction of energy In areas where reducing energy consumption presents period, we further reduced emissions for the second consumption and CO22 emissions whenever feasible. challenges, our focus shifts to replacing existing energy consecutive year and were able to decouple the This objective is addressed through the adoption of sources with environmentally friendly alternatives. emissions from the increased vehicle usage. While cutting-edge technologies, more ef昀椀cient equipment, Since 2020, we have adopted exclusively green the global vehicle supply crisis is causing delays to and behavioral training and adjustments in our electricity practices on a global scale – either through our ambitious plans, by the end of 2023 we increased business practices. procurement or via our own photovoltaic systems. We the total number of ordered vehicles to about 6,500, invest in top-tier green electricity certi昀椀cates that adhere which represents more than 40 percent of our global • In the reporting year, we implemented numerous to the highest standards established by organizations 昀氀eet. More than two thirds of ordered vehicles were energy ef昀椀ciency measures in our existing like EKOenergy and Green-e. Furthermore, we are delivered and are on the road. facilities via a broad engagement of our team actively transitioning to climate-friendly alternatives members, leading to a signi昀椀cant reduction in energy for our energy supply wherever feasible, such as the consumption. This includes minimizing heating and adoption of district heating systems. cooling measures and changing lighting to LEDs. • When constructing or leasing buildings for our own CO2 equivalents operations, we use sustainability principles for in kton guidance. A notable example is our new production plant in India which was inaugurated in January 250 ~240 Carbon neutral 2024. Our aim is to achieve the highest standards, Scope 1, 2 + biz travel speci昀椀cally the gold standards established by 195 the German Sustainable Building Council “DGNB 200 International”, which would make this plant the 145 60% reduced 昀椀rst of its kind in all of India. Our focus on energy ef昀椀ciency has allowed us to in昀氀uence many aspects 150 CO Emissions of the plant during the planning stage. Consequently, 2 from all Hilti operations the plant is projected to require less than 20 percent and business travel of the original energy estimate. Additionally, it will 100 be equipped with a substantial photovoltaic (PV) CO Savings 2 installation to serve as an energy source. through business initiatives 50 85 92 94 97 40% offset CO Offsetting 2 through own projects 0 COVID 2019 2020 2021 2022 2023 Impact
Produce • The Cookstoves Project provides rural households in Kenya with modern and clean methods to cook We are fostering investments in renewable energies by food. The project replaces the practice of burning installing photovoltaic (PV) systems in various locations biomass in open 昀椀res and other inef昀椀cient cooking worldwide. facilities which contribute to indoor air pollution and climate change. By providing modern and clean • In 2023, we increased the output through our strategic cookstoves, the project helps to signi昀椀cantly reduce expansion of PV installations to 9000 MWh. Our energy consumption, CO22 emissions and harmful installed PV capacity now covers 6 percent of our indoor air pollution from smoke emissions. The total electricity consumption, which would supply roughly 33,000 stoves distributed through the project about 3600 European households for one year. At will offset 90,000 tons of CO per year. The project our central warehouse in Liechtenstein, we installed 22 also creates social impact by generating cost savings one of the largest PV systems in the country, with for the families, creating jobs in the area and by an output capacity of approximately 1000 MWh, on helping people stay healthy. top of the 1800 MWh installed in the previous years. We are planning to continue to invest heavily in solar in the future and have already approved a number of new large installations for 2024: for example, 1300 MWh at our plant in Hungary, and 1600 MWh at our plant in India. • The Biogas Project supports families in Madhya Pradesh, India, in replacing inef昀椀cient cooking Offset systems with a biogas digester and a biogas- based cookstove unit, which saves 昀椀rewood and By saving energy and using alternative energy sources, other cooking and heating fuels. Each digester is we can signi昀椀cantly reduce CO emissions. To close the connected to an individual house. The biogas is 22 generated using locally collected organic waste. gap to zero emissions, we compensate the remaining amount with CO22 savings elsewhere. In cooperation Completed during the reporting year, the project with the Hilti Foundation and a renowned external has provided more than 8000 families with digesters, partner, we have created an exclusive Hilti portfolio of thereby offsetting 30,000 tons of CO22 emissions. compensation projects. We are meaningfully involved Besides the positive social impact of generating in the development of these projects to ensure that the jobs, improving health conditions and livelihoods, objectives pursued are in line with our values and that the project also helps to reduce deforestation as they give back to the local communities. 昀椀rewood is no longer needed.
Targets initiative (SBTi). We have set our near-term In 2023, we focused on reducing Scope 3 emissions, target to signi昀椀cantly reduce about 30 percent in our particularly regarding the transportation aspects We will reduce Scope 1, 2 and 3 emissions by 2032 and we aim to of our global supply chain. In North America, we our CO emissions reach net zero by 2050. optimized our logistics network, reducing delivery 2 distances and achieving an approximate 3000 ton in line with the To bring the SBTi to life, we estimate an investment of CO22 reduction. Additionally, we have the 昀椀rst trucking triple-digit million Swiss francs will be needed over the routes being converted to more eco-friendly HVO Science Based next decade to incorporate systematic changes into (hydrogenated vegetable oil), which contributes to our own business processes and to further encourage the CO savings in the logistics area. In the large our partners to develop in this regard. Decreasing 22 Target initiative Scope 3 area of purchased goods and services, we emissions along the entire value chain will support our made further advancements in data transparency and aim to reach customers’ sustainability initiatives and enable us to and are in preparation for raw material changes to contribute to the much-needed transformation of our more sustainable variants, which will take effect in net zero by 2050. industry. the following years. As illustrated in the table on page 19, the largest portion of our CO emissions originates from the 22 category of purchased goods and services (69 percent), speci昀椀cally the materials directly integrated into our Commitment to the Science Based products. During the reporting year, the organizational Targets initiative (SBTi) units responsible for product-related emissions were engaged in developing their respective CO22 reduction Achieving carbon neutrality in Scope 1, 2 and in plans. Furthermore, individual CO22 targets were business travel by 2023 marks an important initial developed in all market organizations. The in-depth milestone in our efforts to combat climate change. analysis uncovered opportunities for leveraging and We nonetheless recognize the vital importance of achieving CO22 savings, resulting in the implementation addressing emissions beyond our own operations. To of initial measures, such as the sourcing of greener align with the ambitious goals outlined in the 2015 Paris materials. Furthermore, we have established in-house Agreement, emissions must be reduced across the processes and tools to incorporate CO22 reduction entire value chain, encompassing Scopes 1, 2 and 3. targets into our product development practices. The We are committed to contributing to this extremely initial pilot projects have been successfully completed ambitious endeavor and have therefore pledged to and we are in the process of rolling out these practices establish targets in accordance with the Science Based company-wide.
Climate risk management Measuring our progress Our Scope 3 emissions decreased by 10% percent in the reporting year, which was largely caused In 2022, we undertook an initial systematic risk CO emissions associated with our neutrality goal by lower emissions in the purchased goods and 22 services category. Besides implementing reduction assessment of the impact that climate change has on (Scope 1, 2 and business travel) increased slightly our business. In our risk management approach, we compared to the previous year from 94 to 97 kilotons. measures, the largest driver for the reduction was focus on the signi昀椀cant physical and transitory risks This change is attributed to an increase in business our decreased purchasing volume compared to the caused by climate change. In addition to this, there are travel activities as well as increased use of district previous year. Emissions in the upstream transportation various business opportunities, particularly in the realm heating. During the reporting year, we conducted and distribution category decreased for the same of developing products, that actively contribute to evaluations and initiated efforts aimed at reducing reason signi昀椀cantly besides the measures described climate change mitigation. emissions related to business travel, with plans for beforehand. Business travel increased slightly, still long-term implementation. coming back from covid restrictions, whereas the use Based on our materiality matrix, and in discussions of products decreased, mainly due to a change in the with internal experts, we systematically identi昀椀ed product mix. and speci昀椀ed climate-related risks for Hilti. We looked at physical risks (acute risks, like extreme weather events, as well as the chronic risk of EEnneerrggyy co connsusummppttiioonn increasing temperatures) for our own operations and in MWh the transitory risk of an increasing carbon price. In terms of transitory risk, the global development of Change the carbon price, which will affect Hilti’s operations 2021 2022 2023 (vs. 2022) as well as that of our suppliers, was assessed up to Electricity 148,112 156,175 152,496 –2% 2030. With the help of an external provider, we did an of which renewable electricity 100% 100% 100% – initial risk quanti昀椀cation. This year we further quanti昀椀ed Combustibles and fuels 333,581 329,355 326,019 –1% sustainability-related risks, opportunities and 昀椀nancial District heating 10,233 7,959 17,230 116% impacts, which is an ongoing project and planned to Sold energy (subtracted) 0 240 1,387 477% show results by mid-2024. Total energy consumption within the organization 491,926 493,249 495,746 1% Number of employees (headcount) 31,115 32,487 34,111 5% To manage the identi昀椀ed climate-related risks, they MWh / employee 15.8 15.2 14.5 –4% will be integrated into the existing enterprise-wide risk management structure, which categorizes material risks for the company in terms of strategy, market, operational, 昀椀nancial and compliance. These risks are managed by internal risk owners and our top management. The integration of climate-related risks ensures high-level management responsibility and underlines their materiality.
11 COCO22 emi emisssisioonnss in t Change 2021 2022 2023 (vs. 2022) Scope 1 78,965 75,877 75,242 –1% Scope 2 (market-based approach) 234 181 339 87% Total CO emissions Scope 1 and 2 79,199 76,059 75,581 –1% 22 Scope 3 Upstream Purchased goods and services22 891,370 1,120,741 1,001,345 –11% Capital goods33 85,664 69,148 73,166 6% Fuel- and energy-related activities 19,294 18,871 18,817 0% Upstream transportation and distribution 103,041 109,235 80,597 –26% Waste generated in operations 427 805 656 –19% Business travel44 13,034 17,416 21,060 21% Employee commuting 12,218 18,098 19,074 5% Upstream leased assets 991 327 35 –89% Downstream Downstream transportation and distribution55 18,633 9,400 9,187 –2% Use of sold products66 123,365 152,157 135,572 –11% End-of-life treatment of sold products 7,047 6,884 7,235 5% 77 Total CO emissions Scope 3 1,275,084 1,523,082 1,366,744 –10% 22 77 Total CO emissions all scopes 1,354,283 1,599,140 1,442,325 –10% 22 Total CO emissions corresponding to our 22 7, 87, 8 CO neutrality goal 92,233 93,474 96,641 3% 22 Number of employees (headcount) 31,115 32,487 34,111 5% 7, 87, 8 CO emissions / employee 3.0 2.9 2.8 –3% 22 11 Emissions from all greenhouse gases converted into CO22 equivalents 22 The 2022 values for Purchased Goods and Services were restated due to more granular material data being available and an updated Multi-Regional-Input-Output model, increasing the emission by 57,692t from 1,046,911t to 1,120,741t. 33 The 2022 values for Capital Goods were restated due to an updated Multi-Regional-Input-Output model, decreasing the emission by 31,449t from 100,597t to 69,148t. 44 The 2022 values for Business travel were restated due to an updated Multi-Regional-Input-Output model, decreasing the emission by 810t from 18,226t to 17,416t. 55 The 2022 values for Downstream transportation and distribution were restated due to an updated Multi-Regional-Input-Output model, decreasing the emission by 8,211t from 17,611t to 9,400t. 66 The 2022 values for use of sold products were restated due to better data quality, increasing the emission by 22,032t from 130,125t to 152,157t. 77 The value for 2022 was restated due to single restatements above. 88 Scope 1, 2 and business travel
At a Glance Doing More • Number of tool spare parts reused increased, from 10,000 to 160,000 over three years, as part of global refurbishment program • Iconic Hilti tool cases produced with 40 percent recycled content in Europe, stemming from with Less closed-loop recycling of red material • Proprietary software implemented to assess battery health for second life options • Qualitative Circelligence Circularity Score improved in the areas of product design, business model and end of life CIRCULARITY The circular economy aims to detach economic Raw Materials Input Product success from the consumption of resources and to Design ensure that resources remain in circulation for as long as possible, preventing the loss of valuable materials. This approach not only allows for ecological bene昀椀ts, but also provides new strategic impulses for business. Hilti owns the value chain – from product design, to CIRCULAR production, transport, customer contact and end of life. This gives us the unique possibility to drive circularity ECONOMY in our industry. End of Life Production Business Model and Usage
• Ensure reuse options for tools and components How we measure circularity which meet our high-quality standards Our goal is to lead To advance the measurability of circularity, we were • Increase material recovery in end-of-life recycling the 昀椀rst company worldwide to develop and use the the industry in through close collaboration with recycling partners Circelligence method, together with Boston Consulting Group (BCG). We now evaluate the circularity of our circularity. • Provide our customers with full transparency on their entire product portfolio on a yearly basis in terms of both circular contribution. quality and quantity. For details on the methodology used, please visit our 2020 Sustainability Report. We continue to focus on advancing the measurability of Management approach Organizational anchoring circularity for businesses. In 2023, we continued our collaboration with BCG and SAP on data automatization, We understand circularity as generating maximum The topic of circularity is anchored in our business with a focus on data visualization. This project is now added value with a minimum use of virgin raw units, in production, logistics, our markets and our concluded. Circelligence by BCG, available within materials, a concept that includes much more than aftermarket sales organization, all of which perform the SAP Store, allows companies to create circularity mere recycling. Our circularity strategy, completed initiatives for improvement. A central project team assessments. Hilti has established a sustainability data in 2020, made us one of the 昀椀rst companies to use in our Tool Services Business Unit consolidates, management, steering and reporting program. Amongst a speci昀椀c methodology to quantify and track our challenges and advises operating units on their other things, this program aims at establishing a solid circular progress. The strategy forms the basis for clear activities. Regular steering committees inform Hilti’s software back end, supporting the automation of our priorities that give circularity even more signi昀椀cance: Executive Board directly on the program’s progress circularity data and reporting. and help to set steering priorities. In 2023, the existing Sustainability Management: p. 4 • Institutionalize circularity in supply and design team, consisting of circularity program manager and decisions, from material selection to designing for circularity operations manager, was complemented by The qualitative assessment shows the maturity of the repairability and interchangeability two circularity project managers. One project manager control system regarding the latest 昀椀ndings in the 昀椀eld is responsible for structuring and expanding our reuse of circular economy. Grades range from “A” (circularity • Improve, reduce and reuse packaging of products program, such as spare part reuse and tool reuse. The has been implemented in all business areas) to “F” (the and in the supply chain other project manager works to enable full item reuse activities and instruments for the implementation of as part of our global refurbishment program. circularity have yet to be developed). The qualitative • Further enhance our circular business model of Fleet evaluation helps to assess details of circular economy Management with tool park optimization and lifetime implementation within a company. Drawing on what extension options was learned in measuring aspects of circularity, BCG again adjusted various questions used in determining a company’s qualitative score in 2023.
Qualitative Score A B C D E F The rating is based on the highest score lowest score British school grading system (A = very good / F = insuf昀椀cient) 2023 2022 Input A B C D E F C Product Design A B C D E F E Production A B C D E F D Business Model and Usage A B C D E F E End of Life A B C D E F E Business Implementation A B C D E F D Collaboration & Ecosystems A B C D E F D In 2023, we improved in three categories compared to • Business model: Overall, the full integration of • End of life: We signi昀椀cantly improved the previous years: targets for circular economy into our new group transparency of end-of-life initiatives, including strategy, with trackers at every level, ensures a reuse and recycling. We also expanded the share • Product design: We increasingly implement high level of engagement and action across the of products for which repair and maintenance circularity in product design, building on our history organization. We are running an increasing number of services are available. We are continuing to expand of designing for longevity and repairability, and will pilots with customers to test different modes of reuse this transparency through supplier engagement in the future focus even more on design for reuse. for our tools. The customer feedback so far has been and reporting, as well as control of our own reuse Together with our targets to reduce our product very positive. operations. carbon footprint, these will be a key focus in the coming years.
Quantitative Score The quantitative assessment provides information on Other important developments relevant to the score the implementation status of circularity based on the derive from the following topics: weight of resources used and ranges from 0 percent Input Product Design (all materials and products are handled in a linear way • Input: We increased recycled content in product 23% (26%) 62% (63%) packaging for cardboard, paper and polymers. at all stages of the value chain) to 100 percent (full However, these increases could not compensate implementation of circularity). We distinguish between for the changes in data on the recycling rates of calculations for tools and consumables, such as our high-volume steel suppliers. We also increased fasteners and other accessories, as the two areas differ CONSUMABLES fundamentally. the reuse of tools and components to 150 tons of Ø36% (38%) material, from a previous 120 tons of material. In the reporting year, the quantitative score for tools End of Life Production remained at 55 percent while decreasing from 38 to • Business model: We increased the sales of tools 11% (11%) 82% (83%) 36 percent in consumables. These changes stem from in our Fleet Management circular business model, ensuring that more customers have access to improved data quality, which informs the assumptions our circular value proposition, such as Tool Park that feed the Circelligence methodology. As the Optimization, contract extension and short-term use Business Model methodology adjusted its data source for measuring and Usage the recycled content in steel from 100 percent to options. 3% (4%) 90 percent, our score dropped in the input category. We consider transparency on environmental initiatives • End of life: The tools’ End-of-Life score experienced a decline due to better data quality, primarily Input Product Design a key value and a continuous learning journey. We 28% (28%) 58% (59%) characterized by the adoption of updated, often therefore decided not to restate previous years based lower, rates for both internal and external (statistical) on improved knowledge and data quality. recycling. TOOLS MMaatteerriiaalls us usseed id in 2n 2002233 Ø55% (55%) By weight (in t) Percentage of recycled raw End of Life Production materials 30% (38%) 89% (88%) 2021 2022 2023 (vs. 2022) Renewable materials (paper, cardboard, wood) 31,611 32,220 30,157 50% (+2%pts.) Business Model Non-renewable materials 244,736 255,839 226,992 21% (–3%pts.) and Usage of which steel 152,622 158,197 139,621 31% (–4%pts.) 68% (61%) of which plastics 17,751 19,779 21,155 10% (+2%pts.) of which chemicals 53,468 56,210 45,695 0% (0%) Previous year 昀椀gures in brackets Products not yet analyzed 7,564 6,552 5,608 Increase compared to 2022 Decrease compared to 2022 Total materials used (products and packaging) 283,911 294,611 262,757 24% (–2%pts.) Stagnant compared to 2022
2023 implementation examples content of recycled material, thus supporting the to include other 昀氀at inserts currently placed in market for recycling plastics. blister packaging. Input ◾ Our iconic Hilti tool cases are produced with ◾ We are continuing to switch all clips on our 40 percent recycled content of the red material in inserts packaging to a paper-based solution, • Raw material usage: Europe, which stems partially from closed-loop which will save us 32 tons of plastic per year We strive to minimize the use of virgin materials. recycling. This means that old Hilti tool cases once we have scaled the solution to more Our products and packaging contain on average serve as material for new Hilti tool cases. We did products (~2.4 million pieces). 24 percent of recycled metal and plastic content. extensive testing with recycled plastic from the ◾ We are switching the transparent part of insert market, versus the recycled content of our old packaging tubes from PVC (~55 tons per year) • Packaging: tool cases, and concluded that we can only keep to widely recyclable polypropylene. Going Our approach to sustainable packaging is, 昀椀rst and our high quality with closed-loop recycling where forward, we plan to scale this solution to all tube foremost, to reduce the amount of packaging and, we can guarantee our own recipe. Closed-loop packaging. secondly, to increase usage of recycled content and recycling also allows us to guarantee supply ◾ We switched from virgin material to 85 percent ensure recyclability throughout our supply chain. All and price stability and will become part of our recycled content for our HUD anchor plastic these considerations do not deter from the fact that standard process in producing tool cases in bags. This change will save roughly four tons of all our products must arrive safely. Higher 昀椀ll rates, Europe going forward. plastic material. bulk packaging and reuse of packaging contribute to this effort. Currently, there are more than 20 active • Paper – throughout 2023, we continued to reduce packaging improvement initiatives in three main the amount of paper and improve the recycled material categories: plastic (single-use plastic and content of our printed Instructions for Use (IFUs). tool cases), paper and cardboard. Some of the ◾ In 2023, all IFUs for our Nuron chargers were highlights are listed below. signi昀椀cantly shortened (from 400 pages to 200) in the course of a redesign project, which will save • We have set ourselves targets on recycled content us 60 tons of paper per year. per packaging material type and and are striving ◾ We are working on identifying high-volume towards 100 percent recyclable, reusable or manuals that will have a signi昀椀cant impact on compostable secondary packaging by 2025. We size reduction once legislation supports this. In have already made good progress on increasing the the meantime, we are increasing the recycled amount of recycled content from 2020 to 2023: content of the paper used for our IFUs, and have advanced from 36 percent in 2022 to 49 percent ◾ Cardboard: from 54 to 74 percent in 2023. ◾ Paper: from 17 to 49 percent • Cardboard – we continue to analyze the recycling • Plastic has certain unique properties, such as content of our portfolio and work together with our corrosion protection and chemical barrier functions. ◾ We shifted the packaging for most of our cutting suppliers to improve the recycling content in our Nevertheless, we want to limit its use in single-use blades from PVC blister plastics to recyclable export and sales packaging. packaging, while ensuring that when it is used, it is cardboard sleeves, saving ten tons of virgin recyclable, reusable or compostable and has a high plastics per year, and we are scaling this change
Product Design Production life at the end of their contract period. At that point, customers can choose to extend the contract, and • Technology and design projects: • Green electricity: simply keep the tool for longer, or upgrade to Hilti’s With our commitment to the Science Based Target Since 2020, we have been using 100 percent latest innovations. initiative, we are now tackling CO22 emissions beyond green electricity, either generated via photovoltaic our direct operations. As more than 90 percent of our systems or purchased, in all our operations, We recognize that unused tools are bad for the Scope 3 emissions are directly related to products, including production. environment and bad for customers’ bottom we began systematically integrating sustainability line. Therefore, we offer a professional Tool Park into product design and material selection. • Water consumption: Optimization service where we propose an CO : p. 13 We are reducing water consumption and increasingly optimally con昀椀gured tool park based on the individual 22 moving away from using groundwater in favor of needs of our customers. Our new modular platform • Our development teams continue to identify ways to surface water and runoff. of Nuron cordless tools integrates a whole suite of include circularity aspects in their design projects. data collection capabilities, which will enhance our One speci昀椀c example is our Firestop Speed • Waste production: ability to provide insights for customers’ tool needs Sleeve, which was designed to be modular and We have committed ourselves to disposing zero based on personalized usage data. fully disassembled to allow for multiple use cycles. waste to land昀椀lls. In the reporting year, we went one More than 90 percent of the components can be step further and are close to being land昀椀ll-free in all Applying actionable data has also allowed us to recycled, and some component materials were our production plants. increase the standard duration of many of our Fleet changed from plastics to organic materials. CO : p. 13; Environmental Protection: p. 27 Management tools in 14 markets, ensuring high 22 Sustainable Building: p. 40 performance for a longer time. We also offer our Fleet Business Model & Usage Management customers a 昀氀exible solution, Tools • Another example is the next generation of Rotating on Demand, which addresses short- and medium- Lasers. We have started to design for circular reuse • Circular value proposition of Fleet Management: term tool needs. This service is now available in of non-wear parts in multiple product generations. An important prerequisite for supporting our 27 markets. We intentionally accept higher costs, for example customers in circularity is our Fleet Management by selecting more robust connectors. These are model. This service model offers customers a long- • Repair: designed to withstand multiple plug-in and plug- term usage agreement for our tools while giving us full Hilti tools are built to last and repaired to last longer. out cycles to qualify in future either for spare parts control over our products throughout their life cycle. Our global network of more than 70 repair centers, reuse or circularity in production for upcoming staffed by more than 800 specialized and trained generations. Fleet Management allows customers to use the technicians, carry out tool repairs locally, where our latest generation of tools along with a full suite of customers work. Our team members in repair are services covering eventualities like repairs and theft. also part of product design teams, to bring insights All tools should have reached their maximum service on repairability into product development.
• Circularity Report: End of Life We are pioneers in providing transparency to We have started to standardize and scale our showcase our customers’ circular contribution at • Collection: donation program of returned 昀氀eet tools. In 2023, a country-speci昀椀c and a customer-speci昀椀c level. Collection is a key step in circularity. Our integrated we donated tools for humanitarian and educational We now have information on collection, reuse and business model and reverse logistics experience purposes in 20 countries, for example to help educate recycling at country level in 40 markets. In 2023, allow us to offer free and convenient tool collection the next generation of construction employees in we also began offering customer-speci昀椀c circularity globally. Every year, we collect over one million tools, Sweden or to support students with special needs reports in 29 markets. These show personalized batteries and accessories from around the world in Italy improving their wood-working skills. details on short-term tool use, collection, reuse and that are part of Hilti’s Fleet Management service, at Social Impact: p. 61 recycling and aim to support customers on their no additional cost. We also provide free collection sustainability journey. for purchased and non-Hilti tools. We also offer free Through this set of measures, we managed to recycling for tools not under our Fleet program, increase the reusage rate of expired tools from including those from other providers. 2 to 13 percent in four years, despite more than 60 percent greater volume of expired materials over • Reuse program: the same period. In 2023, we have adjusted the Our high collection rates enable us to 昀椀nd options methodology to calculate our reusage rate as part of for giving Hilti tools a second life after their initial our corporate strategy rollout. While we previously contract. We do this at many different levels: Some calculated the reusage rate of all collected tools, tools that are the functional equivalents of a new tool we have now adjusted the scope to expired tools. join our inventory of loaner tools, ensuring the tool This also allows us to further drive improvements in is used longer, meeting our customers’ short-term collection and widen the scope of reuse of what we needs. already collect. The reuse of spare parts from returned tools is • Recycling: now a standard operational process in our tool If no reuse option is possible, we work with our best- service centers. Within three years we increased in-class recycling partners to ensure that all materials the number of spare parts being reused from enter proper recycling channels. Given the high 10,000 to 160,000 per year. This initiative saves percentage of metals in our tools, over 70 percent of about 120 tons of valuable electronics, motors our tools’ mass can be recycled. In many markets, and rotors per year. We test each part to ensure it our ratios are even higher. Based on the upgrade meets our high standards for professional repair in our external recycling infrastructure in previous and offer the same guarantee as we would for a years, we now have better data transparency and are new spare part. Based on the high quality achieved starting to investigate more options for closed-loop in this reuse initiative, we expanded our efforts to recycling and improvements in our operations. include additional components. We have developed proprietary software to assess battery health. This software allows us to plug in batteries that have been collected and assess whether they meet the criteria for having a second life.
At a Glance Greater • 25% reduction of standby electricity through employee engagement and increased awareness in our plant in Austria • Implemented a reusage strategy for Personal Protective Equipment (PPE) and apparel in our Resource market organization in Italy • Installed oil centrifuges in our plant in Liechtenstein to signi昀椀cantly reduce oil consumption Ef昀椀ciency ENVIRONMENTAL PROTECTION Within our plants, but also in logistics, repair centers Organizational anchoring Management approach and product testing, we aim to minimize our impact on the environment and to continuously improve resource The topic of environmental protection is handled in In addition to complying with local environmental ef昀椀ciency. Our focus areas are waste reduction, water our Health, Safety and Environment (HSE) department protection laws, we have established a standardized ef昀椀ciency and contaminant emissions reduction, as under the direction of the Chief Compliance Of昀椀cer. and optimized environmental management system well as reducing our CO22 emissions and exploring the We have also appointed approximately 200 HSE and a group-wide environmental policy, which full potential of the circular economy. Besides focusing representatives who work in our various plants, was adapted to re昀氀ect our new Group Strategy on our operative processes, we continuously optimize warehouses and repair centers. Furthermore, the topic Lead 2030, during the reporting year. The policy our own buildings for environmental performance over of environmental protection is anchored in different comprises, for example, continuous improvements, their life cycle. company communities. data measuring and target setting. We encourage CO : p. 13; Circularity: p. 20 Sustainability Management: p. 4; CO : p. 13 all team members to measure their daily actions 22 22 against the standards described in the policy and to demonstrate a potential for improvement. We also
raise our team members’ awareness of environmental We manage the waste generated in our own operations and joint ventures are in areas subject to “extremely protection at Hilti and their individual responsibility by working with external service providers who have the high” water stress; six sites are in areas subject to “high” by means of internal training. Beyond mandatory appropriate certi昀椀cations for disposal of the respective water stress. We are working on the respective risk trainings, we provide training sessions on hazardous waste types. We have committed to contributing zero assessments and are de昀椀ning and implementing actions substances and on the proper disposal and recycling waste to land昀椀lls in all our operations long term and to mitigate the associated risks. We also take the topic of waste. All our product manufacturing units are are working on different projects to further strengthen of water scarcity into consideration when de昀椀ning future subject to ISO 14001 Environmental Management our efforts in this direction. In the reporting year, we plant operations and planning new buildings. Designing 11 sites and operations for minimal water usage, as well System certi昀椀cation. In addition, our developing managed to be land昀椀ll-free at all our production plants . and engineering services, marketing and distribution An overview of our waste by category can be found in as implementing rainwater harvesting measures, are of equipment, tools and fastening solutions for the the tables on page 30. integral parts of this process. Where needed, water construction industry are ISO 14001 certi昀椀ed. On top of used in our industrial processes is treated in in-house that, nine of our market organizations maintain a local Some of our production processes produce wastewater treatment facilities before it is returned to environmental certi昀椀cation. contaminant emissions. We measure these emissions the respective wastewater systems. There are legal at all locations, comply with local statutory emission standards regarding the quality of ef昀氀uent discharge In the reporting year, we passed an external requirements and have received the necessary which we fully comply with. Also, we comply with all surveillance audit for ISO 14001 in the respective permits for our operations. Based on our plant- legal wastewater limits and strive to go beyond them in scope without any deviations. Furthermore, an external speci昀椀c environmental matrices, we identify which the future. In the reporting year, we began expanding our service provider trained our internal auditors on emissions we want to initially focus on reducing and/or plants in India and Hungary. International certi昀椀cations ISO 14001 audits according to the standard, to further eliminating. In each of our plants, we have the expertise from the German Sustainable Building Council increase our in-house capabilities. to monitor the emissions and support our agenda underscore our strong focus on water consumption, to reduce them. We are working to further reduce including rainwater harvesting and grey water utilization. We aim to reduce waste and increase water and contaminant emissions but are also aware that, in the energy ef昀椀ciency and we work on the corresponding future, we will need to 昀椀nd ways and new technologies data management as well as the de昀椀nition of smart to holistically move away from these pollutants. 2023 implementation examples reduction targets. Hence, we constantly increase the measurability and accuracy of data on energy, waste, We mainly use water in our plant operations for several • In our plant in Schaan, Liechtenstein, several oil water and contaminant emissions to better track our production steps and we constantly work to reduce centrifuges were installed during the reporting year. progress and to derive targeted measures that will water consumption through new technologies and With this technology, we can clean the oil coming further optimize our resource use. We engage with all various improvement activities, especially keeping from a converting process. This signi昀椀cantly cuts the relevant stakeholders, such as our team members and water in the cycle. Almost two thirds of group-wide amount of new oil that must be added to the process. suppliers, to reduce water consumption and waste and water consumption is allocated to our plants and During the reporting year, we expanded to 昀椀ve oil to optimize the use of resources. joint ventures, which remain the focus of our activities centrifuges in total. These investments enabled us to achieve further improvements. According to the to reduce oil consumption in 2023 by 20 percent. In “Aqueduct Water Risk Atlas” tool, two of our plants 2024 we expect a further reduction to 40 percent. 1 Land昀椀ll-free is de昀椀ned as sending no more than 1 percent of waste to land昀椀lls and less than 10 percent of waste to waste-to-energy (incineration).
• We actively engage our team members in the pursuit Measuring our progress Water consumption in our plants of energy and resource reduction. At our plant in in m3 Thüringen, Austria, the environmental impact of our Waste and recyclable fractions from different material 200,000 plant activities is explained to all team members in groups, especially concrete and metal, are generated yearly town hall meetings which raise awareness in production and product testing. We have reduced 150,000 142,287 for the topic of sustainability. Furthermore, team the amounts of waste from these applications over the 117,277 115,971 members are encouraged to bring in their ideas last few years. to reduce our ecological footprint to the weekly 100,000 “Hungry Lion” community, where solutions are being Materials containing hazardous substances, such as developed together. “Saving Sponsors” in all areas cobalt in cutting tools, are used in various production 50,000 ensure that every team member has a contact point processes. In 2023, 1,390 tons of hazardous waste and can play an active role in reducing our ecological were produced in our production processes (see table 0 footprint. Together with “automated reduction”, these on page 30). We aim to reduce their relative usage 2021 2022 2023 actions led to a reduction of more than 25 percent in and eliminate these substances as much as possible. the standby electricity needed during the reporting As an example, we managed to eliminate hazardous The data includes the water consumption in our own plants and in all of our joint year. By involving our team in these initiatives, we substances from various diamond core bits. venture plants. create a collaborative environment where sustainable ideas and contributions are valued. An overview of water consumption in our plants can be found in the table below. The water we use is drawn • Our Market Organization in Italy is taking care of from ground and surface water sources. Over the last Personal Protective Equipment (PPE) as well as the few years, we were able to signi昀椀cantly reduce water We aim to minimize apparel of our colleagues. So far, these items have consumption in our plants through different activities not been a focus of our recycling strategy. Together and measures. our impact on the with an external partner, Hilti Italia implemented environment and a collection and recycling system for both PPE and clothes. In 2022, in total around 700 PPE kits to continuously (helmets, safety shoes, ear protection, gloves and masks) were ordered for new team members and improve resource for replacing used items. They are separated and recycled to sound-absorbing panels or mats for playgrounds and other products. The initiative started ef昀椀ciency. in our Italian Headquarter and the logistics and repair center. All Hilti Stores in Italy will be involved next year, and the project will serve as a role model for the entire Adriatic region. For the colleagues, it creates a very positive experience to actively contribute to used PPE and clothing recycling.
1,1, 2 2 BBrreeaakdkdoowwn on of tf toottaal wl waasstte be by cy caatteeggoorry y in t Change 2021 2022 2023 (vs. 2022) Total Waste33 25,224 26,353 26,272 0% Concrete 7,522 6,583 6,160 –6% Metal 6,433 6,268 5,877 –6% Chemical waste33 1,252 1,441 1,396 –3% of which hazardous33 1,152 1,326 1,390 5% of which non-hazardous 101 115 6 –95% Paper 2,951 3,654 2,659 –27% Plastic 889 1,180 1,059 –10% Wood 1,385 1,227 968 –21% Electronic waste incl. batteries 2,715 2,803 3,771 35% Other 2,077 3,197 4,382 37% 11 Incl. returned Fleet Management tools 22 Increased reporting scope in 2022 compared to 2021; total waste decreased by 2 percent excluding this effect 33 The 2022 values for Chemical Waste (of which hazardous) were restated by 108t due to more granular data being available, reducing total Chemical Waste from 1549t to 1441t and Chemical Waste (of which hazardous) from 1434t to 1326t.
At a Glance Responsible •Extended Supplier Recognition Model to additional business units • Started 昀椀rst initiative with business partner for technical plastics to reduce product carbon footprint Partner • Signi昀椀cantly reduced con昀氀ict and critical raw materials usage in cutting and drilling product lines SUPPLIER SUSTAINABILITY region and 7 percent in the Western Hemisphere protection. In terms of speci昀椀c human rights, our Our global supplier network contributes signi昀椀cantly to the added value, quality and innovative strength outside Europe. We procure more than 42 percent of suppliers commit, for example, to eschewing slave of our company as well as to its overall sustainability our direct purchase volume locally in the regions where labor, servitude, forced or compulsory labor and human performance along our value chain. Our relationships products will eventually be sold. traf昀椀cking, to pay minimum wages and not to make use with suppliers, while giving them signi昀椀cant in昀氀uence of child labor. on whether we achieve our sustainability goals, is also The principles of collaboration with our direct suppliers aimed at helping them become more sustainable. are regulated in our Code of Conduct for Suppliers, which The Hilti Code of Conduct, speci昀椀cally the sections must be contractually agreed to by all suppliers before on human rights and the environment, as well as the we embark on a business relationship. Alternatively, Prohibited Practices Policy, which includes the Management approach suppliers may have their own established principles Anti-Corruption, Anti-Money Laundering, Anti-Fraud or codes that meet our requirements. These include and Anti-Bribery Policies, must be observed when We work with roughly 650 core direct suppliers to principles against bribery, corruption and the violation sourcing decisions are taken. All Hilti team members purchase the material that is directly used in our of human rights, and in favor of humane working working in sourcing and in purchasing-related functions products. Approximately 65 percent of these suppliers conditions and minimum wages, as well as the correct are responsible for complying with the policy, the are based in Europe, 28 percent in the Asia/Paci昀椀c handling of hazardous substances and environmental Code of Conduct and any supplementary policies,
instructions and guidelines. To ensure this policy’s local regulations, human rights abuses, or the use of organization in Germany in 2024. As global regulations correct application, we are training our internal supply child labor, we initiate follow-up actions, either internally and supply chain acts continue to evolve, such as community on sustainable sourcing. In addition, we or through Bureau Veritas for on-site veri昀椀cation. the European Corporate Sustainability Due Diligence have systematically introduced mandatory e-training to During the reporting year, a total of 44 audits were Directive, we keep on proactively preparing for future educate the supply community on (product) compliance conducted to assess compliance with our Code of requirements. topics related to procurement. Conduct for Suppliers. The audit results indicate that Business Ethics: p. 56 all suppliers performed satisfactorily, and none required Our standard supplier assessment process a reassessment. The SAP Ariba supplier relationship management incorporates sustainable sourcing principles as a Business Ethics: p. 56 system is the basis for handling all supplier-related fundamental component. To uphold our supplier information digitally on one platform. We are already standards, our Code of Conduct for Suppliers We are committed to the ten principles of the UN connected to almost all of our roughly 650 core stipulates a risk-based approach, and we have Global Compact and to respecting internationally suppliers via this system. These core suppliers established Sustainable Sourcing Policies for both direct recognized human rights, as set out in the Universal handle 99 percent of our total purchasing volume and indirect material sourcing. Since 2018, we have Declaration of Human Rights and the Declaration of of direct materials. Our goal is to have the contract implemented a multi-factor, risk-based assessment the International Labor Organization on fundamental documentation and communication of all suppliers for all direct materials suppliers. We are ensuring a principles and rights at work, and we are committed on this one platform, including those from whom we thorough risk assessment through third-party solutions to protecting these rights. We have published modern purchase our indirect supplies, such as of昀椀ce supplies such as Integrity Next (self-assessment) and PreWave slavery statements in accordance with the applicable and services. This enables us to document standards, (external 360° assessment). To ensure compliance legislation, for example under the UK Modern Slavery product compliance statements, agreements and audit with our relevant standards, our sustainable sourcing Act 2015, and under the Australian Modern Slavery Act results, helping us in systematically cultivating our policies also serve as internal guidance, managed by 2018. For the purposes of these statements, we have supplier relationships. in-house experts responsible for verifying supplier considered the de昀椀nitions of modern slavery, which contract compliance. Additionally, we collaborate with cover various forms of exploitation including slavery, The close collaboration with our suppliers enables us Bureau Veritas to assess compliance with domestic servitude and forced or compulsory labor; human to directly incorporate feedback and common insights. regulations and high standards for employee treatment, traf昀椀cking; sexual exploitation and forced marriage; During the reporting year, we intensi昀椀ed the exchange including working conditions and safety. Prior to child labor; deceptive recruiting practices and debt with selected major suppliers, conducting workshops establishing a new serial supplier, we conduct special bondage. to identify potential product improvements. We started audits which focus on product quality. In cases where with an exchange exploring our common sustainability a business partner violates the agreed-upon standards In 2023, we reported for the 昀椀rst time under the strategy, our values and goals, and proceeded with and fails to demonstrate suf昀椀cient improvement, we Norwegian Transparency Act. Moreover, we have deep dives into the sourcing strategy, elaborating our terminate the business relationship. Moreover, if there begun to publish a declaration of principles according expectations towards our suppliers. Whistleblowing is a suspicion or indication of a violation of our Code of to the German Act on Corporate Due Diligence in and grievance mechanisms are available via our Conduct for Suppliers, such as non-compliance with Supply Chains (LkSG), which will be applicable for our “SpeakUp” hotline for our suppliers.
Organizational anchoring Step 1 to signi昀椀cantly reduce the number of incomplete and/ or erroneous statements by 2024, and to continue Our Sourcing Excellence Team is responsible for In the 昀椀rst step, we focus on creating a high degree raising awareness of raw materials due diligence supplier sustainability for direct materials. A dedicated of transparency concerning our business partners. across our supply chain. For more information on global process manager is in place to coordinate The goal is to track and manage all product-related risk mitigation measures on minerals from con昀氀ict- sustainability in our supply chain and product design. compliance certi昀椀cates and declarations transparently affected and high-risk areas, refer to the sub-chapter This enables an effective and aligned global approach (e.g. RoHS and REACH). As a result, all company- “Raw materials due diligence & supply chain for sustainable sourcing and development activities. related environmental certi昀椀cates, the signed Code reliability” below. of Conduct for Suppliers, the results of our supplier The Global Procurement Indirect Materials function audits, and external ratings and validated supplier data Step 2 manages the topic of supplier sustainability for from, among others, Dun & Bradstreet, EcoVadis and indirect materials. This function is responsible for IntegrityNext, are on a single platform. The second step considers the sustainability ensuring that processes for supplier selection and assessments and the related key 昀椀gures of our supplier relationship management are in place and • We are aware that we currently process various suppliers in all procurement processes. Sustainability adhered to. Procurement Indirect Materials drives, materials in our products which may originate from assessments, such as those from EcoVadis and or is closely involved in, successful projects that are minerals sourced from con昀氀ict-affected and high- IntegrityNext, are part of a bonus-malus system, at the top of the sustainability agenda for Hilti, such risk areas. To mitigate associated risks, we ask which gives advantages to suppliers in the awarding as global renewable energy sourcing, travel demand our suppliers about the origins of their materials, process if they have proven to be more sustainable. management, offsetting projects for CO22 compensation, and we require them to critically assess their own The assessments deploy a structured and uniform shifting to lower emission vehicles and many more. supply chains, ensuring that no materials derived manner to compare suppliers more transparently and CO : p. 13; Circularity: p. 20 from regulated con昀氀ict minerals are present in our comprehensively. Sustainability is a central criterion in 22 products. In 2023, we instigated a more in-depth the bonus-malus system. review process for the replies provided by our Business Ethics: p. 56 2023 implementation examples suppliers. This was to ensure that the replies were complete and compliant with the standards set by • In 2021, we started to monitor the performance We follow a 昀椀ve-step strategy that gradually raises the Responsible Minerals Initiative. It also served and recognize the efforts of our supply partners in our activities to a higher sustainability level. With the to identify the most concerning suppliers and to one business unit via an internally created Supplier help of this strategy, we were able to maintain our put them at the top of the follow-up list. Within Recognition Model (SRM). In 2022 we began sustainable procurement sub-score, in the EcoVadis this scope, we set up an internal risk management awarding the top performing suppliers in four rating, of 70 out of 100 possible points in 2023, which process to contact relevant suppliers who either different categories, sustainability being one of them. is signi昀椀cantly above the average. did not reply to our inquiries or who provided In the current reporting year, we started to roll out Sustainability Management: p. 4 incomplete and/or erroneous information. We intend the SRM evaluation concept to additional business
units. We are also improving the SRM by using more sustainable sourcing and the circular economy. Global We have successfully obtained replies from almost detailed sustainability information on our suppliers, implementation of these practices in our development all our relevant suppliers, the vast majority of whom collected via the IntegrityNext portal. Exemplary processes continues and is driven by a dedicated either declared that 3TG minerals and/or cobalt are evaluation criteria include information on the process manager. not contained in the products they supply to us or that supplier’s energy management and carbon footprint Circularity: p. 20 any 3TG minerals and/or cobalt have been properly management. sourced, as evidenced by an attached CMRT and/ or EMRT. Furthermore, we have established a clear Step 3 Raw materials due diligence & process in which a supplier is contacted directly supply chain reliability through the Sourcing Excellence Team if they do not After evaluating our entire supplier portfolio, the third respond to our CMRT and EMRT requests, or if the step focuses on sustainability initiatives for individual We are aware that we currently process various requested CMRT and EMRT have not been completed material groups. materials in our products which may originate from correctly and fully. minerals sourced from con昀氀ict-affected and high-risk • During the reporting year, we deepened the areas (CAHRAs). At present, there is no equivalent Beyond the considerations of raw materials due cooperation with BASF SE, one of our key suppliers substitute for these minerals, the extraction of which diligence, another issue of growing concern is supply for engineering plastics. Engineering plastics, like may help 昀椀nance armed con昀氀icts or lead to political chain reliability. Unhindered and reliable access to polyamides, are a key pillar in our raw material instability, insecurity, widespread violence and certain raw materials is a growing concern across the portfolio and fully transparent regarding their product prevalent human rights violations in these areas. globe, as evidenced by the recent proposal for an carbon footprints (PCF). Together with our business EU Critical Raw Materials (CRM) Act, and by similar partner and based on the current PCF values, we are To mitigate associated risks, we ask our suppliers initiatives across G20 member states. As part of the de昀椀ning a road map to convert our entire engineering about the origins of their materials, and we require proposal for the EU CRM Act, a list of 36 strategic plastics portfolio into a more circular and sustainable them to critically assess their own supply chains, CRMs was published which highlighted materials one. The road map contains topics related to raw ensuring that no materials derived from regulated having a high supply risk and high technological materials, as well as improvements in production con昀氀ict minerals are present in our products. By using importance. From this list, cobalt, nickel, tantalum and processes. the Con昀氀ict Minerals Reporting Template (CMRT), tungsten are worth highlighting due to their relevance developed and maintained by the Responsible Minerals to current R&D activities mentioned below. Steps 4 and 5 Initiative (RMI), we gather information throughout the supply chain regarding the countries of origin and Our long-term objective remains to replace all materials In the fourth step, we have started to systematically the smelters and re昀椀ners utilized for processing tin, potentially linked to CAHRAs with less problematic expand our sustainable sourcing practices to include tantalum, tungsten and gold (commonly abbreviated ones and to reduce the use of CRMs as part of larger- our sub-suppliers, including the monitoring of their as “3TG”). In addition, by using the Extended Minerals scale efforts to align our product designs with our respective performance in our sustainability scores Reporting Template (EMRT) from the RMI, we also gain principles of sustainability. Within this scope, we would and awarding practices. Finally, the 昀椀fth step applies clarity on our cobalt supply chain. Both the CMRT and like to highlight four current R&D activities. model-driven sustainability engineering practices EMRT standards are designed to be aligned with the to in昀氀uence our product design and development OECD Due Diligence Guidance for Responsible Supply process, further promoting the integration of Chains of Minerals from Con昀氀ict-Affected and High- Risk Areas.
First, we recently switched some of the hard materials Third, we are actively researching novel alternatives the binder phase for percussion drilling applications used for saw blade applications from traditional to traditional tungsten carbide – cobalt (WC-Co) without the inclusion of cobalt, and 2) microstructural tungsten carbide – cobalt (WC-Co) hard metals to hard metals for percussion drilling applications in design for damage-tolerant components exposed to titanium carbonitride (TiCN)-based cermets. Not only collaboration with academic partner institutions. wear. Furthermore, our internal experts will play a key does this lead to a considerable reduction in the Several cobalt-free candidate materials emerged advisory role for other topics within the AIM-NEXT content of tungsten, cobalt and tantalum, but also to from a sponsored PhD project, which concluded in project in close collaboration with our research and a substantial performance improvement in terms of 2023, in partnership with the Technical University of industry partners. lifetime, considerably reducing the cost-per-cut for our Vienna. These materials are currently being re昀椀ned in customers. Our new line of X-Cut circular saw blades, collaboration with external suppliers and will soon enter for thin and structural metal cutting applications a testing and optimization phase. and launched in 2022, already bene昀椀ts from this substitution. We are investigating possible expansion Fourth, through our involvement in wider-scale R&D to other product lines. In addition, we kicked off R&D projects, which are jointly funded by public institutions, projects with academic partner institutions to develop by private companies and by industry consortia and custom cermets for our applications, thus further trade associations, we are supporting long-term, driving product differentiation and sustainable product cutting-edge scienti昀椀c research. The most recent design. development is our active involvement in the EU- and industry-funded “Accelerate the design and insertion Second, we are conducting an extensive internal of non-CRM hard materials for next generation project to reduce, or even obviate, the use of cobalt extreme applications”, or AIM-NEXT project. It will and nickel in our diamond inserts. We are investigating focus on establishing new experimental methods and the use of cobalt- and nickel-free metal matrix computational approaches for the design of tools composites and alternative thick coatings for these without CRMs, such as tungsten or cobalt, which are inserts, while ensuring that their best-in-class cutting currently essential for high-performance applications performance remains unchanged. This goes hand in like percussion drilling. This 4-year project will kick off hand with establishing reliable manufacturing process in 2024 and will fund ten researchers at institutions chains in collaboration with our plant engineering across the EU. Hilti will host two researchers as part colleagues. of AIM-NEXT, who will focus on 1) strengthening
For the People #12 -9% New technology further enhances Rank among the “World’s Reduced lost time incident user health & safety best Workplaces™” rate in own operations
At a Glance Safety at • Launched new cordless tools that help to avoid risks of unhealthy fumes or 昀氀ying sparks • Launched next generation shoulder exoskeleton that is easier to wear and adjust • Introduced cordless concrete vibrator that Construction comes with ergonomic backpack Sites USER HEALTH AND SAFETY Construction sites remain dangerous workplaces Organizational anchoring despite the numerous applicable safety regulations Our aim is to be and the measures and strategies already taken by User health and safety is deeply incorporated into the companies that aim to help prevent accidents. We our customers’ strategy of all our business units. We continuously want to be our customers’ best partner for user health evaluate how we can improve existing products, and safety. For more than 80 years, our products and best partner for whether we can extend existing safety solutions to services have been making work on construction new product groups and which new solutions are sites safer. Our technological innovations support safety. feasible for increasing health and safety in construction. the protection of users from injuries, accidents and Improved safety does not detract from ease of use. diseases, such as cuts and silicosis. This begins in the We place a great amount of emphasis on ensuring development process of our products and continues that all safety features are seamlessly integrated and all the way to consulting and user training. complement a tool’s performance.
In addition to the business units, the central Corporate How we promote user • Product Safety Technologies: Research & Technology area in Schaan, Liechtenstein, The launch of our new Nuron battery platform not and our Competence Center for Health & Safety health and safety only represents the development of new products Technologies in Kaufering, Germany, drive innovation Our goal is to provide solutions for greater health and and solutions but has also allowed us to extend in user health and safety. For many years, we have safety for users on the construction site. We intend current safety solutions to further increase user continuously examined how to implement innovations to do so with a comprehensive and state-of-the-art health and safety on the construction site, and in this context as part of our exploratory technology hardware, software and service offering. thereby live up to our aim to be our customers’ best development. partner in safety. These solutions include, but are not limited to: Our sales structure of direct customer contact and feedback from our worldwide repair centers enable us to collect user experiences quickly and comprehensively, effectively looping this back to product managers at a regional and global level. Hence, if complaints indicate injuries or product defects, this Solutions for greater health and safety for users is swiftly noted and brought to the attention of the on the construction site relevant people who take all the necessary steps to identify and solve the issue. Product Safety Ergonomics Dust Management Management systems and policies Technologies Systems In the product development process, which EXO-S incorporates standards such as the European Machinery Directive, we assess the ecological and health properties of a future product at an early stage. This assessment includes a variety of criteria, such as vibration or noise and dust generation. Product development only enters the next phase if all safety- related points have been addressed. This structured development approach enables products to surpass Hazard Reduction Fatigue Reduction Dust Exposure Reduction regulatory safety requirements. Health and Safety Trainings Face-2-Face Group Sessions Remote sessions E-Learnings
• Sens Tech: a new feature that recognizes if the user • Exoskeleton EXO-S: we introduced the next has had its own dedicated Dust Lab since 2008. This loses control of the tool and automatically shuts it generation shoulder exoskeleton, which is easier to is where our experts investigate and evaluate solutions down. wear and adjust. to effectively minimize dust. In the development, we focus on optimizing the entire system, from dust • AVR: our Active Vibration Reduction (AVR) extractor to dust shroud and power tool. Our Dust technology reduces vibration and increases working Removal Systems (DRS) help to remove dust at comfort. It is also available on our Nuron platform, the source and ef昀椀ciently collect it with the help of for example with the TE 2000-22 and TE 60-22. powerful vacuum cleaners, such as the VC 10-22. • 3D ATC: our Active Torque Control system (ATC) In addition to DRS systems and vacuum cleaners, the has now been further developed to also recognize AIC 1000 and 2000 air cleaners further expand our when the tool in question moves away from the portfolio for jobsite and worker safety. They help to workpiece and shuts off the tool. reduce a worker’s dust exposure by 昀椀ltering very 昀椀ne dust particles, which are the most harmful to our lungs • FX 3 Stud Fusion: the cordless stud fusion system and otherwise can remain in the air for several days. helps to prevent 昀氀ying sparks and 昀椀re hazards. This Air cleaners are mostly found on renovation jobsites cordless welding system works entirely without where large amounts of dust are created. heavy gas cylinders, power cords, angle grinders, fumes or light radiation. • Training and advice: We are dedicated to raising awareness on • DSH 700-22: battery-powered rear handle cut- • NCV 10-22 concrete vibrator: highly versatile construction sites. Hence, our comprehensive off saw for 昀氀oor-focused tasks – the DSH 700- cordless concrete vibrator with an ergonomic hardware offering to enhance user health and safety 22 gets the same work done as gas cut-off saws backpack minimizes set-up time and potential work is complemented by a wide range of interactive in this class, but without the fumes, noise, extra interruptions. training sessions speci昀椀cally for users. The focus maintenance and fuel mix issues. of all our training modules is on risk and accident • Dust Management Systems: reduction according to the STOP method: risk • SL 10-22 tower light: improved visibility on jobsites Dust is omnipresent at construction sites. Due to their reduction through substitution as well as technical, thanks to powerful tower light with 360° light small size, dust particles may stay in the air for a long organizational and personal protection measures. coverage for cordless, indoor jobsite illumination. time and penetrate deep into a worker’s lungs. Our We currently offer more than ten different training focus in developing solutions is to minimize user dust modules, for example in the 昀椀eld of dust or working • Ergonomics: exposure while enabling maximum productivity. with angle grinders that can generate 昀氀ying sparks, We work on solutions that automate the workplace, and are constantly developing our portfolio further. and that enhance ergonomics to ease repetitive and In 1995, we launched the 昀椀rst tool on the market to Our wide range of training courses includes on-site uncomfortable tasks that stress the user’s body. In have an integrated dust extraction system. Today, up training at a customer’s premises, virtual formats with the current reporting year, we launched the following to 95 percent of our power tools can be used virtually our experts and e-learning courses. Approximately new products: dust-free. Our Health & Safety Competence Center 12,000 users were trained in 2023.
At a Glance Safer and • Hilti concrete sensors supported reduced material usage and associated CO22 savings • Fleet Management services enabled Tool Park Optimization which led to CO emissions being 22 Greener reduced • Hot and cold aisle container, modular support systems and 昀椀re stopping solutions increased Construction customers’ energy ef昀椀ciency and safety SUSTAINABLE BUILDING New construction projects aim to reduce negative Furthermore, we support more sustainable “green effects on the environment while also creating a buildings” that are characterized by lower carbon Our aim is to be positive atmosphere for the people who live and work emissions with higher resource and energy ef昀椀ciency, in these buildings. We want to be our customers’ along with the use of renewable and uncontaminated our customers’ best partner for building safety. Our cooperation with raw materials. Our aim is to help customers achieve customers, universities, research institutes, code these high standards. best partner for of昀椀cials and approval bodies has helped to establish high construction standards and allowed us to make safety. signi昀椀cant contributions to increasing building safety.
Management approach In 2023, we carried out many customer meetings Solutions helping to save lives and protect assets to discuss the prevailing sustainability trends and associated requirements in the construction industry. Based on these collaborative efforts, we con昀椀rmed 昀椀ve trends that are important for sustainable building Better protection against Lifetime performance at Hilti: critical events 1. Resource ef昀椀ciency to optimize material usage and reduce waste Seismic Fire High-performing Quality Installation 2. Energy ef昀椀ciency to reduce operational emissions Protection Protection Hardware and Documentation 3. Improvements to the health and safety of the people living or working in the building Safer building designs 4. High adaptability to changing environments with minimum environmental impact 5. Data transparency and collaboration with customers Training & Consulting Design Building Information on data transparency Software Modeling Design Hilti’s solutions provide building owners with an opportunity to decrease their carbon footprint in the construction phase and increase energy ef昀椀ciency during the operational phase, while giving their which stand on a foundation of safer building design: The foundation of long-lasting buildings is created buildings a healthier and safer environment. Our better protection against critical events, such as 昀椀re in part by the durable hardware elements placed in products also support our customers in achieving or earthquakes, and lifetime performance, ensuring those buildings. We help to ensure the performance of green building standards. For example, our the long-term durability of our solutions. our fasteners by running long-term testing in corrosive Environmental Product Declarations (EPD) are issued environments, such as in coastal areas that have by the Institut Bauen und Umwelt e.V., and our Material In the 昀椀eld of seismic protection, we offer solutions 昀氀uctuating temperatures and high humidity levels. But a Health Certi昀椀cates are issued by the Cradle-to-Cradle designed to help fasteners, rebar connections, 昀椀re- product’s features, and lifetime performance, can only Products Innovation Institute. protected penetrations and joints better withstand the be guaranteed if a product is correctly installed. We impact of an earthquake. In the area of 昀椀re protection, have therefore developed systems and services that Building safety we offer passive 昀椀restop solutions that better enable allow for high-quality installation, maintenance and 昀椀re containment, thereby reducing the impact on both corresponding documentation. Our aim is to be our customers’ best partner for safety. occupants and structure. In order to do so, we have de昀椀ned two strong pillars
In support of safer building design, our 昀椀eld-based mindset of sustainability, from design to production and used Hilti Concrete Sensors (HCS) on this project. engineering force consults on critical safety problems aftermarket service processes. Sensor technologies enabled DPR to optimize the and provides technical assessments, engineering Sustainability Management: p. 4 cast-in-place concrete on this project, which allowed services and on-site testing during the design the project team to move faster, save money and and construction phase. We also support general reduce the CO impact of the concrete. An estimated contractors in planning their projects more effectively, 22 Management systems and policies 24 percent cement reduction was achieved through modeling and calculating safety-critical solutions the strategic selection of concrete mixes and the directly within the Building Information Modeling (BIM) We partner closely with standardization organizations, integration of the HCS solution. These sensors offer methodology. helping to ensure compliance with regulations and the vital data on concrete maturity and timeline, aiding effective performance of our solutions. We are also DPR in selecting the most suitable mix for their actively engaged in these organizations, such as the project and avoiding waste. Organizational anchoring European Committee for Standardization, the European Organization of Technical Assessment and the Improving both the environmental footprint and safety International Code Council. These associations allow of a building is the task of our business units. We follow us to strive to develop standards and regulations that a structured development process that integrates create a foundation for both safer and more practical security features into our products at a very early design solutions. We promote these standards and stage. In addition to tests anchored in the guidelines, regulations in the markets in which we operate, and we we check for a wide variety of contingencies, such participate in public consultations carried out by the as incorrect product storage and varying installation respective national committees. conditions. We only market a product once these risk assessments have been completed. In addition to our obligation to monitor a product after its launch, 2023 implementation examples feedback from our customers also plays a key role in the continuous improvement of our product offering. E xplore how we help our customers to reach their sustainability Experts in our development teams carry out structured goals in our 2022 Company Report reviews of customer input, performing additional tests and site visits if necessary. • Concrete Sensor: DPR Construction is a general • Doing more with less: Benelmat is a construction contracting 昀椀rm in the US. At DPR, project teams equipment rental company, part of the CFE group, To illustrate our commitment to helping our customers typically place high value on accomplishing projects with headquarters in Belgium. The CFE group on their journey towards a sustainable future, we on time and on budget. This is why DPR decided to has sustainability and innovation at the heart of established a Customer Sustainability Management use concrete sensors for the delivery of the Granite their activities, principles that Benelmat put into Team. The team’s mission is to collaborate with Southlake building that won the Outstanding Building practice when providing on-site assistance during customers, raise awareness and provide transparency of the Year award in 2022. This project poured construction and renovation. Benelmat reached out on sustainability within the construction industry while 4540 cubic yards of concrete for elevated decks to Hilti in order to improve the sustainability value helping Hilti customers achieve, among other things, in the summer in Texas. As concrete cures, heat is proposition of their small equipment 昀氀eet. Thanks low carbon footprint solutions, circularity, building generated, and large structural elements get hot. to Hilti’s Tool Park Optimization service, Benelmat safety and user health & safety. Furthermore, the team To measure the in-place concrete temperatures and was able to reduce their small equipment park from supports the organizational transformation towards a estimate in-place concrete strength, DPR’s team 1200 tools, batteries and chargers to little more than
700. This switch resulted in savings of 20t CO22 or avoid using hazardous substances, both to minimize entirely from our top line of diamond inserts by 2030. 40 percent of Benelmat’s emissions from power tools their environmental impact and to lessen any possible Also, to reduce the amount of lead, we switched to used during building construction and installation. adverse health effects. We want to reduce their share alternative, lead-free steel and copper alloys for in our products across our entire portfolio, for example a number of our components. We will continue with • Resource and energy ef昀椀ciency: Telia Helsinki in chemical anchors, 昀椀re protection products and tools, further actions towards the reduction of the amount of Data Center is the largest open data center in as much as is technically possible. Our commitment to lead in Hilti components. the Nordics. Telia Helsinki Data Center provides high performance and quality remains our top priority. secure data center and infrastructure services Furthermore, we offer preformed 昀椀re protection for both Finnish and international companies and We act in accordance with the safety, product and solutions. These add to our range of preformed organizations. Telia built a new data center where Hilti substance compliance regulations that apply in our joint solutions, complementing options for interior markets, including the EU Regulation on Registration, 昀椀nishing contractors, covering both the top and bottom contributed to deliver sustainability, energy ef昀椀ciency and safety thanks to our solutions for hot and cold Evaluation, Authorization and Restriction of Chemicals of walls in 昀氀at and metal deck construction. This aisle containment, modular support systems and and the EU Directive on the Restriction of Hazardous approach allows for the further reduction in the amount 昀椀restopping. Hilti modular systems have been used Substances. We monitor regulatory developments of chemicals used in wet application processes, in the data halls so that the rack aisles can be easily and adapt to new or revised regulations at an early increasing productivity and safety on the jobsite and modi昀椀ed and adjusted to the data center’s needs. stage. We already go beyond the legal requirements allowing for an easy installation system. Even where In addition to separating hot and cold air, the Hilti regarding the use of hazardous substances in many certain 昀椀re protection applications cannot be replaced aisle containment system is designed to support of our products and we also require all our suppliers with preformed solutions, such as our range of cable all cabling, trays and busbars. This multipurpose to disclose their handling of hazardous substances coating products, our ethos of protecting environmental application allows the use of less material. Pipes, and to comply with our standards. Every supplier and human health from hazardous substances ducts and cable penetrations through 昀椀re rated walls must complete a chemical checklist, which includes continues. We continue to work on replacing hazardous require 昀椀restops. Hilti speed sleeves are easy to questions on key product and substance compliance substances contained in our cable coating materials. open and re-seal for future cable penetrations. They regulations. In addition, our Fastening & Protection In doing so, we are not only progressing toward safer also help with air tightness, contributing to energy Business Area requests more extensive information products, but also eliminating the need for dangerous ef昀椀ciency, which translates into less operating carbon from its suppliers when it comes to chemical products. goods labelling and the associated costly special emission. Hilti solutions contributed to Telia Helsinki handling, usage and transportation that were previously Data Center receiving LEED Gold certi昀椀cation. Our product development process focuses intensely required. Company Report on eliminating or 昀椀nding alternatives for hazardous substances. At an early stage in the process, To reduce hazardous substances in our chemical we systematically examine alternatives for such mortars, we are continuously working to identify and Responsible handling of hazardous substances and their suitability in the product. qualify less harmful alternatives and recently revised the substances We place emphasis on preformed products in 昀椀re composition of two of our HIT-HY products. Moreover, protection, for example, reducing the risk that a user we reached a major milestone in 2022 by introducing Health and safety play a central role in our business. may come into contact with reactive chemicals. our 昀椀rst inorganic chemical mortar: FP 700 R. This new Accordingly, we strive to better protect users of our technology has the same 昀椀re rating as concrete and products, building occupants and our team members We are continuing our work to reduce the amount of is an example of our efforts to provide additional safer from hazardous substances that may be present cobalt in our diamond inserts portfolio by switching and more sustainable solutions for our customers. in some of our products. Part of our sustainability from materials containing cobalt to alternative, less strategy is thus based on intensifying our efforts to hazardous materials. Our aim remains to remove cobalt
At a Glance Care and • Achieved outstanding result by ranking #12 among the “World’s best Workplaces™” • Achieved best-ever employee engagement score of 78 percent and made it into the top quartile in our annual Global Employee Opinion Perform Survey (GEOS) OUR CULTURE OF ENGAGEMENT Management approach We want to be a great employer for everyone, with managers and mentors and accessing tools and everywhere, and inspire engaged, inclusive and resources that put success at their 昀椀ngertips. The foundation of our business success is our people- empowered teams who are passionately driving high oriented corporate culture. Our shared values of performance. We live our caring and performance- commitment, courage, teamwork and integrity oriented culture every day, act with integrity in Organizational anchoring form the basis for our caring and performance- everything we do and show courage to try new things, oriented environment which, in turn, paves the practice teamwork and live up to our commitments by The strategic group-wide people approach is way for the success of our worldwide team. All our delivering what we promise. developed by Global Human Resources, which reports activities are aimed at engaging our team members, to the Executive Board. Our centers of excellence making employee engagement a keystone of our Our ‘people approach’ gives our people ownership for address talent acquisition and management, diversity, people strategy. Engagement allows us to 昀椀nd greater their development and transparency on the essential equity and inclusion, learning and development, meaning in our work and to experience professional parts of the employee experience at Hilti – the as well as reward and bene昀椀ts. Human resources growth while creating an impact and developing contribution we make, setting objectives and rewarding teams support the organization – team members deeper connections. Our focus on diversity, equity and recognizing the work we do. Feedback and and team leaders – in their personal and professional and inclusion helps us to leverage the potential of our recognition are a part of our everyday activities. Our development. growing global team. These overarching ambitions are people are empowered to take action now, and for supported by continuous learning and development the future, by frequently discussing their experience and ensuring the well-being of all Hilti team members.
Our People Approach Management systems and policies Fair labor relations, respect for human rights, freedom of association and equal opportunities form the V core labor standards of the International Labor E E R R Y O O F Organization. Our own ambitions exceed these by far. N R E E , Y O E L V P E Our Code of Conduct and our Anti-discrimination R M Y E W H and Anti-harassment Policy are among our key T A E E R internal regulations. Our Anti-discrimination and Anti- R E G harassment Policy include information about how one should intervene when team members observe any F type of situation involving discrimination or harassment. r e s q h u t e We regularly monitor our processes and guideline g n n t e r C t o compliance through internal audits and have external s n v n e reviews carried out according to recognized standards. o r s s A large number of our organizations worldwide have u a c t i o o ISO 9001 certi昀椀cation, which covers more than F n s 90 percent of our team members. This ISO standard was successfully recerti昀椀ed by the Swiss Association Employee for Quality and Management Systems in the reporting Engagement year. Violations of internal or external regulations are not tolerated. In addition to the respective team leaders’ and team members’ representatives, w contact persons are available in our global and local Ow no compliance organizations. ne ion Business Ethics: p. 56 rsh Act ip king a T CARIN URE G T AND D CUL PERFORMANCE-ORIENTE
GEOS Employee Engagement Score Diversity, Equity & Inclusion in % 78 77 Our passionate and inclusive global team is 80 77 77 77 78 Our at the core of our success and our caring and top quartile 75 76 74 75 Engagement performance-oriented culture. With a global team of (global) 71.9 71.5 Score 34,000 colleagues, we strive to create an environment 70 68 68 where everyone feels a sense of belonging. In the norm 65 66 67 (global) 64 past, our efforts were de昀椀ned through the three G’s: generation, gender and global. With the launch 60 of our new corporate strategy, Lead 2030, we are broadening our approach from diversity and inclusion to encompass equity (DEI), welcoming visible and 50 invisible diversity, and focusing on embracing diversity 2018 2019 2020 2021 2022 2023 of thought. C ompany Report 2023 implementation examples point inside the top quartile result. The feedback To achieve this, we cultivate an inclusive environment has improved across many dimensions, with the that mirrors the diverse communities we serve and Employee Engagement biggest improvements in feeling encouraged to live in. Every member is respected and valued for suggest improvements, feeling supported to engage their unique qualities and shares the responsibility of Employee engagement is at the heart of our people in social initiatives and in providing 昀氀exibility to creating a brighter future, not just for today but for strategy. We seek feedback from our team members balance personal and professional life. At the same generations to come. regarding engagement and benchmark ourselves time, we still have some dimensions with room for against other leading companies. To improve, we improvement. The true value of GEOS lies in a deep • To transform our DEI vision into actionable positive regularly collect and implement ideas received from our analysis of what our team members tell us and then steps, we have launched a global initiative, DEI team members. Our annual Global Employee Opinion de昀椀ning action plans to address the feedback. diagnostic workshop, to establish a baseline for Survey (GEOS) provides us with valuable information in DEI within each entity at Hilti and empower each ® the areas of engagement, leadership, team, organization, • We participate in the Great Place to Work leadership team to pinpoint DEI blind spots and build strategy, development and inclusion, to name a few. Institute’s assessment in multiple countries around impactful action plans. We aim to be in the top quartile of all companies in the the world. A company’s 昀椀nal ranking score is largely comprehensive database of our external provider with based on feedback received directly from team • We have an active network of 50 engaged, team respect to the GEOS Employee Engagement Score. members. In 2023, we ranked 12th on the “World’s member-led resource groups worldwide known as Best Workplaces™” list, 8th on the “Best Workplaces Own It! These groups serve as a global community • In 2023, 91 percent of our team members in Europe™” list and 17th on the “Best Workplaces and champion our DEI initiatives. participated in the GEOS survey and submitted in Asia™” list. Also, for the 昀椀rst time ever, we almost 15,000 comments, while employee ranked 24th among the “Best Workplaces in Latin • Our yearly employee engagement survey lets us track engagement increased from 77 to 78 percent, America™” list. We were also recognized as one of our progress on inclusion. This year, we are proud to our best result so far. Hence, for the 昀椀rst time we the best employers in several countries. report that we have remained in the top quartile and were able to enter the top quartile at 1 percentage C ompany Report have an inclusion index of 80 percent.
• We are dedicated to increasing diversity within Learning & Development • The L&D team partnered with key business areas our workforce. We want to be able to measure to ensure both a change management journey and progress and have a clear ambition to increase our Developing our people is a primary focus and one of competence across our organization for the most representation of women in our workforce by 1 to our core competencies. Our learning portfolio includes transformational product launch in our company’s 2 percent points year-on-year. This has led to a both user-generated content and formal learning history. Our Nuron Learning Journey won two current proportion of 28 percent of women in our journeys to convey performance-based knowledge different 2023 Brandon Hall Group Awards – GOLD workforce. and application, as well as a predominant focus on for Best Learning Program Supporting a Change learning on the job. The content on our internal learning Transformation Business Strategy, and SILVER for • We believe in fair end equitable compensation. While platform, which has an average of 61,500 views per Best Unique or Innovative Sales Training Program. we consider objective criteria, we do not tolerate week, is largely written by more than 1,200 team discriminatory measures. In 2023, we conducted members across all functions. More than 1,300 team • In 2023, we ran 57 leaders through a new program. our second equal pay analysis, extending our scope members act as community managers to engage with Leading Leaders prepares our Level 5 leaders for to cover all Hilti colleagues worldwide and focusing learners and ensure the transfer of knowledge. the additional challenges that they encounter in on gender in all markets and on ethnicity in the their roles. The course included both theoretical and markets where the data was available. The results • By supporting our team members’ development, practical segments, such as leading an organization have placed us on par with other highly regarded we live up to our ambition to promote more than through business acumen and developing a strategic multinational organizations. Overall, Hilti’s global 80 percent of our team leaders from within. view, eliminating the tendency of leaders to do equal pay gap is 2.46 percent, with our largest Over decades, the Hilti Group’s success is strongly too much work themselves, in昀氀uencing through entities having a gap below 2 percent, and we are connected to our long-term stability in key leadership networking and leading change. closely examining any individual disparities and roles and succession planning. taking proactive steps to rectify them. • In 2023, WIN became embedded in every region. • In preparation for the launch of our new strategy, WIN is designed to support new team members Lead 2030, we held interactive, company-wide throughout their 昀椀rst year, creating deeper bonds training sessions for all our team members. Ignite to Hilti, each other and customers. The WIN model Lead 2030 is an in-person learning session that gives focuses on prioritizing bonding our team members team members the chance to explore, understand, to Hilti, helping them to become engaged, con昀椀dent discuss and internalize our Lead 2030 strategy. and customer-focused account managers.
Employee Well-being • On physical health, each Hilti organization drives local activities and programs to encourage a focus on We understand our team members’ well-being to be physical health, from health screening (e.g. in the US) the combination of their physical, mental, 昀椀nancial, to 昀椀tness facilities in our of昀椀ce buildings and healthy social and career well-being. This is vital to delivering employee nutrition. For example, our staff restaurant outperformance. at corporate headquarters features a permanent vegan buffet. To ensure maximum use and sourcing • During mental well-being week in May 2023, we of seasonal and local products, we work with various organized a series of events around the world, such local suppliers. To help combat food waste, we have as mindfulness sessions, mental health talks and created an offering of dishes made from ingredients webinars. This marked the second time a majority of which have an extended shelf life. The remaining the events were made available to our global team organic waste is used in the production of biogas. members. We continue providing one-day “Care and Hilti’s “Rote Haube” personnel restaurant in Schaan Perform” sessions on the topics of resilience and is certi昀椀ed according to ISO22. mindfulness to all our team members around the world. • We recognize that team members want more 昀氀exibility to work remotely. Lessons from the pandemic have demonstrated the opportunities 昀氀exibility can bring to our company. Last year, all Hilti organizations started measures designed to facilitate 昀氀exible ways of working. For example, in several of our market organizations around the world, team members now have the opportunity to work at least half of their weekly working hours from home, provided their tasks allow for this.
Our Global Team in 2023 EmpEmpllooyyeeeess b byy g genendederr a anndd m maannagageemmenentt le levvelel Change (% vs. 2021 2022 2023 2022) Executive Board 6 6 6 0% Female 0 0 0 0% Male 6 6 6 0% 1st management level 179 177 180 2% Female 30 26 25 –4% Male 149 151 155 3% 2nd management level 5,775 6,373 6,738 6% Female 1,380 1,621 1,754 8% Male 4,395 4,751 4,984 5% Non-binary 0 1 0 –100% Team members 25,155 25,931 27,187 5% Female 6,873 7,346 7,783 6% Male 18,277 18,582 19,399 4% Non-binary 5 3 5 67% Total employees by gender and management level 31,115 32,487 34,111 5% Total employees by region 2023 New employees by region 2023 Number Number Eastern Europe / Europe Eastern Europe / Europe Middle East / Africa 18,270 Middle East / Africa 3,129 3,457 624 Americas Americas 5,898 34,111 1,178 6,176 Asia / Pacific Asia / Pacific 6,486 1,245
EmpEmpllooyyeeee b byy ag agee a anndd m maannagageemmenentt le levvelel TToottaall fu fullll--ttimeime TToottaal el emmppllooyyeee re reetteennttiioon rn raatte ie in %n % Change Change Change (% vs. (% vs. (%pts. 2021 2022 2023 2022) 2021 2022 2023 2022) 2021 2022 2023 vs. 2022) Executive Board 6 6 6 0% of which permanent 28,306 29,313 30,538 4% Female 90.1 90.3 90.6 0.3%pts. 25 and under 0 0 0 0% Female 7,013 7,539 7,994 6% Male 90.4 91.1 91.6 0.5%pts. 26–35 0 0 0 0% Male 21,288 21,770 22,540 4% Non-binary 100 100 80 –20%pts. 36–45 1 1 0 –100% Non-binary 5 4 4 0% Total employee 46–54 4 3 5 67% of which temporary 1,573 1,848 2,109 14% retention rate in % 90.3 90.9 91.4 0.5%pts. 55 and above 1 2 1 –50% Female 504 643 671 4% 1st management Male 1,069 1,205 1,437 19% NNumumbberer o off em emppllooyyeeeess wi witthh level 179 177 180 2% Non-binary 0 0 1 25 and under 0 0 0 0% Change Total full-time 29,879 31,161 32,647 5% (% vs. 26–35 4 4 4 0% 2021 2022 2023 2022) 36–45 80 68 72 6% Total target 46–54 70 78 76 –3% TToottaall pa parrtt--ttiimmee agreements 23,687 25,145 28,045 12% 55 and above 25 27 28 4% Change Female 6,095 6,686 7,689 15% 2nd management (% vs. Male 17,589 18,454 20,353 10% level 5,775 6,373 6,738 6% 2021 2022 2023 2022) Non-binary 3 1 3 200% 25 and under 14 11 8 –27% of which permanent 1,090 1,177 1,310 11% Total documented 26–35 1,824 1,973 1,982 0% Female 689 749 825 10% development Male 401 428 485 13% discussions 22,314 21,335 25,166 18% 36–45 2,387 2,673 2,923 9% Female 5,674 5,684 6,804 20% 46–54 1,041 1,163 1,220 5% Non-binary 0 0 0 0% Male 16,639 15,648 18,359 17% 55 and above 509 553 605 9% of which temporary 146 149 154 3% Non-binary 1 3 3 0% Team members 25,155 25,931 27,187 5% Female 77 62 67 8% Total number of 25 and under 2,039 2,408 2,664 11% Male 69 87 87 0% employees 31,115 32,487 34,111 5% 26–35 10,790 11,033 11,331 3% Non-binary 0 0 0 0% 36–45 6,568 6,762 7,148 6% Total part-time 1,236 1,326 1,464 10% 46–54 3,377 3,473 3,626 4% NNumumbberer o off a apppprreennttiicceess 55 and above 2,111 2,255 2,418 7% Change (% vs. Total employee 2021 2022 2023 2022) by age and Total 383 401 427 6% management level 31,115 32,487 34,111 5% Female 110 104 110 6% Male 273 297 317 7% New in respective year 145 128 164 28% Female 53 35 46 31% Male 92 93 118 27% Total number of apprentices 383 401 427 6%
At a Glance The Team • Introduced “accident safety alert” template to foster learning from incidents within the organization • Implemented ten Corporate Health & Safety – High Risk Work Standards globally Counts • Lost time incident rate improved by 9 percent EMPLOYEE HEALTH AND SAFETY We want to provide our approximately 34,000 team Management approach the factors that led to it and the immediate measures members worldwide with the safest possible working and longer-term improvements that are necessary to conditions in all areas of activity – in our plants and No Hilti employee should be exposed to dangerous ensure that it does not recur across our operations. laboratories, in logistics, in repair centers, in direct situations. Team members are instructed to immediately This is part of our occupational safety management sales, at of昀椀ces and, to the extent possible, on the draw attention to any such situation, stop it and only system. There are daily exchanges between local jobsites we visit. Consequently, we aim to create a continue once it is mitigated. We expressly accept Health & Safety experts and team members across all virtually accident- and injury-free workplace. We focus interruptions to our work processes in this context. hierarchy levels in our production and operating units. not only on the risk of injury to our team members, Across the company, we strive to make occupational but also on their long-term health, counteracting the If, despite all precautionary measures, a dangerous safety a permanent agenda item – we do this with a various stresses of everyday working life. situation or accident occurs, a de昀椀ned reporting safety contact concept. We have a safety mindset Our Culture of Engagement: p. 44 process is used to investigate, in a structured manner, road map to drive our Health & Safety management.
We are aware that the level of safety in all areas cannot Management systems and policies be increased through regulations and training alone. Our goal is to Therefore, we ask all team members to take our safety The six occupational Health & Safety principles in mindset to heart and to think and act in a safety- our Health & Safety Policy apply to the Hilti Group become an conscious manner according to the maxim “safety is worldwide and are based on recognized standards. industry leader caring”. Our team leaders have a special responsibility The policy discusses the Hilti Code of Conduct to foster this mindset and are asked to internalize it and section regarding Health & Safety and re昀氀ects on to show their team members a better way to handle the Occupational Health and Safety Management in employee safety issues. Systems (OHSMS) we use to steer our organizations worldwide. Different OHSMS are prevalent in different Health & Safety. regions. These include ISO 45001 in Europe and Organizational anchoring OHSAS in the USA, as well as other national and industry-wide systems. The management systems We direct our activities through safety steering throughout the Group are therefore similar, but not In the current reporting period, we assessed our committees where leadership members serve as safety identical. global progress over the last two years with surveys ambassadors. While safety steering meetings take and external audits. Based on this analysis, we will place on a quarterly basis, the committees meet every We work with industry-leading providers to gain review the road maps for all business areas and, in a month. The steering is responsible for controlling the a comprehensive picture of the applicable legal subsequent step, update and adapt them. This year’s progress of the work and ensuring the right direction. requirements and then provide them in an IT-based Perception Survey marks the completion of the current The Global H&S Process Manager coordinates the management system to our local organizations. The control loop that commenced with the Safety Mindset overarching interaction between the various steering management system is used centrally to list tasks and Initiative, launched in 2021. The increased participation, committees. assign and delegate responsibilities to local colleagues. nearly four times that of 2021, is an explicit indication To ensure that the standards are implemented in of the commitment to this cause. The survey clearly In addition to their responsibility for compliance with compliance with applicable laws, regulations and shows that the presence of safety as a company value, local occupational Health & Safety legislation, the main licenses, internal and external occupational safety and the empowerment of individuals to take action on task of the local H&S teams is to prevent occupational specialists conduct on-site visits and safety inspections safety concerns, are core strengths of Hilti. However, accidents and work-related illnesses. The teams ensure at our plants, repair centers and in logistics operations. the survey also shows the need for ongoing efforts. that our internal policies, standards and guidelines, The specialists exchange information and experiences which typically go beyond national legal requirements, in regular H&S online groups to promote learning from are implemented. As in other areas, we work with a others and sharing of best practices. community approach to connect colleagues worldwide and manage a knowledge exchange. Sustainability Management: p. 4
Building a strong safety mentality begins with re昀氀ection Behavior Engagement Leadership Starting point • Development of • Team leaders • Team members are Result management systems exemplify a safety actively involved Assessment according to ISO mentality in the in impr oving Fewer of our current standards company safety and directly accidents and safety questioned a strong sense mentality • Assignment of • Team members are about it of safety responsibilities 1 trained regularly 2 3 Mutual Caring 2023 implementation examples • Development of an accident safety alert: • Introduction of H&S newsletter: In the current reporting period, we introduced a In the current reporting period, the Health & Safety Three dimensions are decisive in anchoring the “Safety safety alert template – which is implemented by the community in the company’s aftermarket service is Caring” mentality as an integral part of our Group’s H&S community. The alert is used to share examples (AMS) area introduced an H&S newsletter, which caring and performing culture: the responsibility of our and experiences from previous accidents or near is published monthly. The newsletter consists team leaders (leadership), the processes and habits in misses, the root causes that were identi昀椀ed and the of different elements, including an overview of daily work (behavior), and the transfer of knowledge subsequent actions that were taken. This enables us accidents, potential prevention measures and and creation of risk awareness (engagement). The to increase transparency and awareness of accidents mitigation actions that were implemented. It also result aims at fewer occupational accidents and an within the broader organization. The alert also fosters enables us to spread awareness throughout the ongoing journey towards an accident- and injury-free learning and aims to avoid the recurrence of similar organization. In 2023, we saw a signi昀椀cant reduction workplace. situations and accidents going forward. in accident numbers and a change in the safety behavior in the AMS centers. Increasing safety and decreasing accident levels are two examples that illustrate that the topic is understood and, more importantly, taken to heart.
• Implementation of corporate safety standards: Measuring our safety progress Structured reporting is an integral part of measuring In the current reporting period, we developed and safety progress. For the reporting of work-related implemented Corporate Health & Safety Standards Our main indicator for measuring our safety hazards and hazardous situations, we have a process in ten high-risk areas. These standards supplement performance is the lost time incident rate (LTIR). with clear steps and responsibilities in place. Incidents our Hilti Health & Safety Policy, and they extend our It measures the number of accidents that result in or observations must be reported immediately through Occupational Health & Safety Management System more than one day of absence from work per one our online reporting tool, either by someone observing by detailing the basic Health & Safety rules Hilti million working hours. In the reporting year, we the incident or by the employee involved. has established for its team members, visitors and further increased the transparency of our data as contractors while they are working for Hilti or on described below. In 2023, the overall health and safety Hilti premises. The common, global set of standards performance at Hilti improved. The total number of creates a baseline and gives life to the goal of accidents decreased from 227 in 2022 to 214 in 2023. creating a harm-free workplace. These standards The LTIR came down by 9 percent to 3.55. In 2023, have set minimum requirements for mitigating a 4 accidents with severe consequences occurred. The range of occupational risks present at Hilti locations main types of work-related injuries and hazards in and where Hilti team members do business. These 2023 were cuts, especially to hands and 昀椀ngers – we standards also represent our efforts to encourage are working hard to reduce these further. occupational safety excellence throughout the organization. Additionally, we have developed an implementation guide, a self-assessment and 11 a requirement matrix which is separated into EmpEmpllooyyeeee a acccicidendenttss d dururinging w woorrkk the different functional areas and shows the Change corresponding requirements that must be met. 2021 2022 2023 (% vs. 2022) 22 • Continued rollout of ENGAGE workshops: Total 261 227 214 –6% In the current reporting year, we continued to reinforce of which with severe consequences 33 11 13 4 –69% Hilti’s safety commitment while strengthening the of which fatal 44 0 0 0 – 22 safety mindset within the company culture. As part Lost time incident rate of our safety mindset road map, we fully rolled out (based on 1,000,000 hours worked) 4.7 3.9 3.55 –9% and conducted evaluate, name, gather, assess, Accident rate with severe consequences generate, execute (ENGAGE) workshops, which (based on 1,000,000 hours worked) 0.2 0.2 0.1 –50% were introduced as pilot projects in 2022. In these Fatality rate (based on 1,000,000 hours worked) 0.0 0.0 0.0 – workshops, we raise awareness in the organization 1 1 Internal employees incl. contingent workers (2021, 2022) concerning occupational safety and create or adapt 2 2 Employees absent from work for at least one day 3 3 Accidents with subsequent work loss > 60 days a corresponding action plan. 44 Fatal traf昀椀c accidents
For Our Society CHF ~72,000 47.9 million hours spent within our corporate spent to continue the impactful Anti-trust campaign volunteering program Engaged work of the Hilti Foundation rolled out Beyond Business
At a Glance Create • Rolled out anti-trust policy campaign • Launched Company Policy Portal • Revised Fair Competition Policy and related guidelines Trust • Revised internal Compliance Management Reporting BUSINESS ETHICS Our approach to business ethics is driven by integrity, Organizational anchoring Compliance Management System a core company value of our caring and performance- driven culture. We not only aim to meet existing Our group has a compliance department headed by the The CCO is responsible for our Group-wide legal requirements, but also want to make a visible Chief Compliance Of昀椀cer (CCO). The CCO has overall Compliance Management System (CMS), statement for responsible corporate governance. We responsibility for compliance management and reports which is based on ISO 37301, ISO 37001 and the have set this ambitious goal realizing that corporate to the General Counsel, who reports to the CEO. In IDW PS 980 audit standard. It also encompasses attitudes and behavior cannot be changed in the short addition, the CCO is in direct contact with the Board of our health, safety and environment topics related term. This involves constantly improving our internal Directors’ Audit Committee. to ISO 14001 and 45001. The CMS applies to all organization, regularly questioning existing systems Group companies, addressing all formal compliance and making changes as required. The CCO’s responsibilities include monitoring and objectives as well as the resolutions of both the assessing compliance risks in the context of Group- Board of Directors and the Executive Board. It wide risk management, which is updated annually includes policies, guidelines, regulations, processes, together with the internal Group audit. organizational structures, roles and responsibilities, as well as information on planning and implementing Information on our Corporate Governance can be compliance measures. found in our 2023 Financial Report. Financial Report: p. 81
The CMS’s internal policies are built upon the Hilti How we embed business ethics in our Code of Conduct for Employees and the Code of Conduct processes for Suppliers We uphold , further detailed in the Sustainable Sourcing Policies ourselves and the and process. Accepting and adhering to the Comprehensive and target group-oriented compliance Code of Conduct for Suppliers is a mandatory part training concepts ensure that we inform our team industry to the of all direct supplier contracts and indirect supplier members about our compliance requirements that relationships based on a risk matrix. In the reporting are relevant for them. Besides the online component, highest standards year, we signi昀椀cantly enhanced and automated our our on-site training and case studies are an supplier monitoring procedures, harnessing a range essential part of our compliance training strategy. in business ethics. of software tools to comprehensively evaluate and The training courses provide a general introduction proactively manage supply chain risk data driven from to compliance issues and more in-depth handling both a top-down and bottom-up perspective. We of individual aspects. A monthly topic-speci昀椀c additionally conduct in-person audits through a third- communication by the compliance department in party service provider. our internal communication platforms, with concise, Topics covered in our CMS: Supplier Sustainability: p. 31 easy-to-remember content, is intended to increase awareness of current and relevant compliance topics. • Antitrust Law The Code of Conduct training for team members, It also serves as a reminder for completed or optional • Corruption Prevention initially introduced in 2021 and 2022, has been followed e-learning courses. Furthermore, all new general • Con昀氀ict of Interest Management by an anti-corruption (2022) and anti-trust e-learning managers at our local organizations are trained in • Anti-Money Laundering campaign (2023), achieving a 90 percent adoption compliance issues in their area of responsibility as • Anti-Discrimination and Anti-Harassment rate. In 2024, we will be moving to an integrated part of their comprehensive training immediately • Product Regulatory Compliance e-learning onboarding experience for new colleagues. after taking the position. • Human Rights / Prevention of Forced and Child Labor We maintain a commitment to continuously review and • Export Control and Sanctions Law update our Code of Conduct to ensure its relevance In the context of compliance management, we and effectiveness. undertake a great effort to make any con昀氀icts of The extended responsibility of the compliance interest transparent. New team members must department also covers: We oversee various aspects within the CMS via a new disclose all relevant con昀氀icts during the recruitment comprehensive dashboard, encompassing reporting and onboarding process and existing team members • Health & Safety and Environmental Protection (HSE) metrics such as the overall risk score, protective must participate in a con昀氀ict of interest survey at least • Data Privacy measures such as training coverage and behavior- every three years, or more frequently if required by local regulations. in昀氀uencing initiatives, and our incident reporting. The dashboard is regularly presented to the audit committee.
All team members are encouraged to prevent and Including other incoming reports, we handled Every Hilti Group subsidiary is 昀椀rmly committed report violations of legal regulations or internal 222 cases in 2023, of which 167 are completed, 52 are to upholding the fundamental principles of data guidelines. We have numerous options and still pending and two are on hold. Of those completed, protection and ensuring the enforceable rights of data contact channels for trustworthy and anonymous 84 led to disciplinary measures while 68 have been subjects. This commitment serves to provide robust reporting. Our team members can contact the local closed without 昀椀ndings. 37 cases were closed with safeguards for the transfer of personal data outside the and regional compliance of昀椀cers, the corporate other measures. More than 60 percent of our case EU within the Hilti Group. Our team members receive compliance department, the CCO and the anonymous reviews are related to minor inter-company matters. data protection training tailored to their speci昀椀c job whistleblowing hotline, “SpeakUp”. In the reporting roles and the data protection regulations pertinent year, 81 incidents were reported through our to their respective countries. For instance, in our whistleblower procedure (see graphic below). We Product Regulatory Compliance South African entity, we’ve introduced specialized diligently review all reported incidents to ensure that training on the Protection of Personal Information Act. facts are clari昀椀ed and systemic problems or patterns We have positioned ourselves as an innovative, Furthermore, within our software development units, are identi昀椀ed. We ensure that the rights of both premium provider in our industry, fostering fair we have introduced dedicated face-to-face training the whistleblower and the involved person are not competition and driving technical progress and sessions that cover data protection. compromised (non-retaliation policy). digitalization. The Product Regulatory Compliance (PRC) function, reporting to the CCO, acts Cybersecurity is a top priority within Hilti and is Incoming Messages independently of the business units and supports supported by various technical and organizational and monitors the ful昀椀llment of product regulatory measures. The Hilti Cybersecurity Policy follows 80 requirements across the various areas of the company. the latest ISO 27001 standard and provides the In this role, the Compliance Of昀椀cer also provides baseline for our IT control catalog. This serves the 70 legal databases, in addition to those of the technical ambition to ensure reliable, maintainable and effective 60 departments, to ensure timely access to information on control management. On top of this, regular audit 50 regulatory developments. engagements are performed to provide an independent 40 third-party opinion of our control environment, which 30 is re昀氀ected in Hilti’s ISAE 3000 attestation. Beyond 20 Data protection & cybersecurity this, Hilti heavily focuses on capability improvements, 10 such as IT governance, network security and In 2022, we obtained approval from the Liechtenstein privilege access management, securing more than 0 Data Protection Authority for our 1000 privileged users. We additionally invest in Binding Corporate 2016 2017 2018 2019 2020 2021 2022 2023 Rules ongoing security testing capabilities, ranging from , following the European Data Protection Board’s favorable opinion and active engagement with all penetration tests and attack simulations to purple/red relevant EU supervisory authorities. Upholding the teaming exercises to further strengthen our cyber- application of these binding corporate rules within Hilti attack resilience. Our Security Operations Center is requires a sustained effort, encompassing training, continuously increasing their detection use cases, audits, updates and meticulous documentation. ensuring transparency across the company against
attacks. Moreover, to further strengthen cybersecurity During the reporting year, we set up an internal logistics operations, particularly in our warehouses. awareness within the company, we regularly update dashboard, creating transparency within our We monitor, evaluate and solve incoming alerts daily. our mandatory cybersecurity training for all team direct supplier network, on the suppliers and their We maintain a speci昀椀c, stringent policy for business members globally and ensure that our colleagues sustainability performance. This allows us to ensure partner onboarding in China. Regarding our own team are aware of current cybersecurity threats. This is that our business partners respect human rights, which members, our human resources department carries out additionally supported by ongoing awareness and we screen with the support of different IT tools and personal background checks in countries which have phishing campaigns, as well as target group-speci昀椀c the stipulations of our Supplier Code of Conduct. We a high-risk exposure when hiring an external candidate training. In 2023, Hilti was not confronted with any closely monitor supply chain acts around the globe, for critical management positions. major cybersecurity incident. The impact of continuing such as the German Due Diligence in the Supply Chain Supplier Sustainability: p. 31 the active management of our external attack surface Act and the Norwegian Supply Chain Transparency Act, is also re昀氀ected in our external ratings. In September preparing for the EU Supply Chain Directive. Moreover, 2023, we received a BitSight rating that recon昀椀rms we publish our statement of compliance with modern 2023 implementation examples Hilti’s place in the advanced sector. slavery reporting requirements in Hong Kong, Australia, the United Kingdom and California. • Adoption of Human Rights Policy for Supply Supplier Sustainability: p. 31 Chain Due Diligence on Human Rights and the Human rights due diligence Environment: We carry out comprehensive due diligence in the form We are vigilant in ensuring that our business As a globally active company with complex value of background checks and screening of third parties. operations and supply chains worldwide re昀氀ect our chains, Hilti is exposed to human rights-related We screen our direct suppliers with the support of three dedication to ethical practices and respect for human impacts. We strive to avoid adverse human rights different IT-supported mechanisms. These screenings rights and the environment. We adopted the ‘Human impacts throughout our business operations and in the include topics such as ethical behavior, health and Rights Policy for Supply Chain Due Diligence on communities in which we engage. We are committed safety management and compliance with human rights. Human Rights and the Environment’ that details the to the ten principles of the UN Global Compact and The related supplier self-assessment has become a Human Rights section of the Hilti Code of Conduct to respecting internationally recognized human rights required condition to take up or maintain a business and environmental aspects, amongst others, to as set out in the Universal Declaration of Human relationship with Hilti, as described in our Sustainable address global Supply Chain Acts. Besides our top- Rights and the Declaration of the International Sourcing Policy down and bottom-up risk assessment procedures, . We added this policy to our long- Labor Organization on fundamental principles and standing approach of supplier screening to exclude, our due diligence framework is established to rights at work. We are committed to protecting these for example, sanctioned parties, smelters that are not prevent or remedy any human rights violations in the rights. They are re昀氀ected in our Code of Conduct whitelisted and suppliers with human rights violations. context of our business operations. Our grievance for Employees, our internal policies and our Code of A similar screening process is applied to our customers procedures and reporting, as well as training and Conduct for Suppliers and, from 2023, in our Human to comply with export regulations and sanctions capacity building, are also set out in this Policy. Rights Policy. laws. The process is fully automated as it includes, Our Culture of Engagement: p. 44 for example, automated shipping restrictions in our
• Anti-Trust Campaign Rollout and • Company Policy Portal: Training sessions completed Policy Revision: During the reporting year, we launched our Company We train our team members to enable them to Policy Portal, a user-friendly platform designed to EE--leleaarrnninging a anndd w woorrkksshhooppss comply with competition laws. Our mandatory serve as the central repository for all our policies, competition law training is designed to equip team guidelines and standards, accessible to all team 2021 2022 2023 members with the knowledge and skills required for members. This portal offers a host of features E-learnings of antitrust law11 11,802 13,591 28,288 a range of situations, such as market information aimed at enhancing the user experience and 22 gathering and engagement with competitors. The maintaining the integrity of our documentation. One Face-to-face workshops on compliance, incl. antitrust law training emphasizes the severe consequences key feature is automated content 昀椀ltering based on and anti-corruption 247 1,159 1,584 of anti-competitive behavior, underscoring that user pro昀椀les and geographical locations, ensuring Percentage of employees any short-term gains from such practices pale in that team members are presented with the most trained in anti-corruption comparison with the long-term risks they pose. pertinent information up-front. Furthermore, we’ve policies 46% 96% 90% In navigating these complex market conditions, implemented permanent links to guarantee that users Percentage of board members a commitment to ethical and lawful conduct is always have access to the latest versions of our (EB and BoD) trained in paramount. Furthermore, to further support our documents. anti-corruption policies – 100% 100% Percentage of employees team members in navigating in the complex market trained in business ethics topics 54% 77% 86% conditions, we replaced our Antitrust Directive To maintain the relevance and accuracy of our Cumulated number of supplier with the ‘Fair Competition Policy on Anti-Trust and policies, we’ve established a continuous validity audit training participants 312 286 147 1 1 Competition Law’ in 2023. The Policy details the Fair work昀氀ow. This work昀氀ow ensures that both the policy 2021 includes numbers of participants who completed general compliance Competition section of the Hilti Code of Conduct by content and its ownership are regularly reviewed and e-learnings (incl. antitrust), as well as e-learnings focusing on antitrust law 2 2 Number of participants in general compliance workshops (incl. antitrust law and outlining the basic rules on topics such as: general updated, with a streamlined process for managerial anti-corruption), as well as workshops with focus on antitrust law for speci昀椀c user groups compliance with anti-trust laws, participation in escalations and automated removal of uncon昀椀rmed associations, interactions with customers, dominant or orphaned policies. Additionally, language versions market position or buy-sell relationships with of our policies are linked to the primary English suppliers. version, making it convenient for users to access different language versions from a single location. This comprehensive approach to our Company Policy Portal re昀氀ects our commitment to providing a seamless and up-to-date resource for all our team members.
At a Glance Helping • 800+ corporate volunteering projects supported by 11,000+ team members within the corporate volunteering program Engaged Beyond Business • Vocational training program for Kenya’s construction sector successfully launched with the 昀椀rst Sustainably 300 trainees hired by 40 companies • Launched ‘Fire Up,’ a streamlined teacher training to amplify our global Music for Social Change programs • Reached the next level in bamboo construction by introducing its technology to build larger structures SOCIAL IMPACT Management approach Projects of the Hilti Foundation Corporate Volunteering Program We believe that every individual should have the ability “Engaged Beyond Business” Wherever our team members work and live, societal to grow and take control of their own lives. To unlock For decades, Hilti team members have shown great challenges exist. As a group, we want to have a the potential that lies within every human being, the compassion by contributing to the communities they sustainable positive social impact at scale. Hilti Foundation strives to empower people in need live and work in. As a socially responsible company, to become economically independent through their Hilti wants to support and encourage team members’ Our social engagement is based on two pillars: own efforts, allowing them to live better and more social and environmental commitment through the self-determined lives. Together with a network of long- Engaged Beyond Business corporate volunteering standing partners, the Hilti Foundation develops and program. The program was launched in 2020 together implements programs in clearly de昀椀ned focus areas, with the Hilti Foundation. The goal is clear: to provide pursuing sustainable social change for the bene昀椀ciaries every single Hilti team member worldwide with and the communities they live in. The foundation’s work opportunities to participate in social or environmental focuses primarily on people living below or just above initiatives beyond business. Already today there is the poverty line. Investments in charitable projects substantial engagement in many Hilti organizations amounted to CHF 47.9 million, supporting around happening and we want to pool the energy and 89 projects in the year under review. By working with readiness of our approx. 34,000 team members. We are Hilti, our customers contribute to a better world: The convinced that every one of us can make a difference, Hilti group donates a substantial amount of its annual according to our maxim: “Your engagement is our pro昀椀t to the Hilti Foundation. most powerful tool.”
NNoonn--pprroo昀椀昀椀t et ennggaaggeemmeennt ot of tf thhe He Hiilltti Fi Foouunnddaattiioonn By working with Hilti, our customers 2021 2022 2023 contribute to a better future: The Hilti Group Number of projects supported 76 88 89 Monetary value of invest- ments in support projects in donates a signi昀椀cant amount of its annual CHF million 31.9 47.1 47.9 pro昀椀t to the Hilti Foundation. For our corporate volunteering program, we have set the goal of devoting an average of one working day a year for each team member to social or environmental engagement. Overall, this would Organizational anchoring Our social engagement in numbers correspond to an annual engagement of roughly 160 full-time working years. In 2023, the average The Corporate Sustainability Team is responsible We want to ensure that our team members’ volunteer days per employee amounted to 0.26 which for the Engaged Beyond Business corporate engagement positively impacts society, and our non- is a decrease from 0.27 in 2022. The numbers show volunteering program. The Corporate Sustainability pro昀椀t engagement drives sustainable systemic change. that, while we were able to increase the absolute number Team coordinates the social engagement of team Therefore, de昀椀ning the right tools to track and measure of team members participating in our volunteering members worldwide at the Group level. It makes any social initiative is an important element. program, the hours volunteered per person decreased general recommendations to Hilti organizations, steers slightly. With our continued focus on the promotion local implementation of the targets and facilitates a 11 of the Engaged Beyond Business program with a structured experience exchange within the Engaged EEngngagageedd B Beeyyoonndd B Buussineinessss dedicated global communication campaign, we aim Beyond Business community. to engage even more employees to participate in the 2021 2022 2023 coming years. The Hilti Foundation is jointly funded by the Martin Hilti Number of employee projects > 300 637 854 Family Trust and the Hilti Group. The Hilti Foundation Number of employees We have developed a digital reporting tool that allows Board acts as its governing body with representatives participating 6,000 9,145 11,563 us to provide transparency and track the progress of from both entities. The responsibility for the operational Number of volunteer hours our corporate volunteering program Engaged Beyond business lies with the Foundation’s management registered in our system 26,000 69,000 71,672 Business. The reporting tool is integrated in the team, which also performs an advisory function for the Donations raised through community platform project we introduced in 2021. Corporate Sustainability Team of the Hilti Group. our projects in CHF million 1.3 1.5 1.1 Since its launch, we have focused on the global rollout Average volunteer days of the community platform and the reporting tool. per employee 0.1 0.27 0.26 This platform is now available in the largest 20 market 1 1 More accurate numbers are displayed starting with the year 2022 due to organizations in our various regions. improved data quality
In 2023, we started to integrate the global initiative Engaged Beyond Business – for tool donation into our Engaged Beyond Business A chance to volunteer for everyone program. This initiative stems from the circularity Explore program as part of giving a second life to returned Volunteering at Hilti can be as diverse as our teams our stories 昀氀eet tools. We donate returned tools for humanitarian are. We support projects on-site through technical and educational purposes. In 2023, we donated tools or hands-on activities. We encourage skills-based Discover a selection of 昀椀rst-hand stories of our in 20 countries, for example to support construction involvement, where team members support projects team members’ volunteer engagement in our education in Sweden or to assist wood workshops for with their professional know-how and competencies. 2023 Company Report people with special needs in Italy. Going forward, we And we encourage team-led charitable and fundraising C ompany Report will focus on expanding the geographical scope of our activities. Many of our programs are run locally and tool donation program, implementing additional tool focus on social commitment for causes directly donation options and including tracking in our reporting where our team members live and work. Hilti team tool for Engaged Beyond Business. members get paid time off to volunteer for their causes Circularity: p. 20 of interest. To round it off, the Hilti Foundation has I nstallation of Beehives in Bulgaria selected partnerships with organizations and offers Every year we measure team members’ perception international projects that our team members may join. in our global employee opinion survey, GEOS, on the question: “Hilti actively supports me to engage in social initiatives beyond business.” In the 2023 reporting year, we increased the positive perception by 5 percentage points, from 77 to 82 percent, at Group level. This marks a signi昀椀cant increase for the third year in a row since we began measuring team members’ perception towards our corporate volunteering program. We see this positive improvement as an indication that we are moving in the right direction, and will focus our efforts on scaling and promoting the Engaged Beyond Business program. Our Culture of Engagement: p. 44 B ed Distribution Drive for Underprivileged Children in India
Focus areas of the Music for Social Change Hilti Foundation Together with highly competent partners, the Hilti Every young person is entitled to a quality education, a Foundation develops and executes projects in three conviction on which the work in the focus area “Music for main strategic areas. Social Change” is based on. By making music together, Learn more about the Hilti Foundation in our 2023 Company Report students build skills and mindsets that empower them on their path to adulthood. Strong self-con昀椀dence enables them to develop and use their full potential while taking responsibility for themselves and the community. Economic Empowerment Music for Social Change • AIM, the Academy for Impact through Music, provides a platform for these teachers to develop and test Enabling people in need to become economically • By supporting social music programs around the world, innovative and impact-oriented teaching methods. independent is what economic empowerment is the Hilti Foundation offers children and young people In 2023, AIM has started to develop “Fire up”, a less all about. Special programs provide both the rural development opportunities that enable them to grow time intensive course that recognizes the limited time population and the young generation in the cities of beyond themselves and overcome the limits set by their availability of many teachers and therefore condenses East African countries with the ability to escape poverty socio-economic background. This requires not only music the core elements of AIM’s 15-month teacher training and become part of an emerging middle class. as such, but also well-trained teachers who focus on the program. This allows AIM to also extend the reach of the Economic Empowerment personal development of their young students. program. • The enterprise development program provides families in rural East Africa with professional training, coaching and micro昀椀nancing to create thriving farming enterprises. This enables them to earn a Affordable Housing & Technology • In 2014, the Hilti Foundation launched the BASE Bahay sustainable and growing income, so they can afford a Foundation to establish bamboo as a standard building better living standard through their own efforts. By 2030, an estimated 3.0 billion people worldwide are material for the Global South. Focusing on housing expected to live in substandard housing. This has a for low-income families, more than 1500 homes have • Since 2022, the vocational training project PropelA signi昀椀cant impact not only on their safety and health but been built in the Philippines and Nepal using Hilti’s provides Kenya’s youth with excellent practical skills also on their economic and social opportunities. “Affordable innovative CBFT bamboo technology. Although bamboo for sustainable employment and thus for a self-reliant Housing & Technology” contributes to creating safer and is considered resilient, green, and affordable, it is still a life. The program’s success requires commitment affordable living spaces for people in need by developing niche product in the construction industry. from the government and from the private sector, with innovative technologies and sustainable building concepts. 40 leading plumbing and electrical Affordable Housing & Technology • To reach the next level in building with bamboo, BASE is companies employing the initial now enabling the construction of special structures, such 300 apprentices, who will graduate as schools, community centers and market halls, based on with a national diploma after two the high-level research of its innovation center. Thus, BASE years. PropelA aims to transform the is also helping to create a bamboo industry, including, vocational education completely in among others, treatment facilities and prefabrication Kenya’s construction sector. centers. These also provide exciting business opportunities for local entrepreneurs and communities.
ABOUT THIS REPORT Basis of reporting The table on page 67 shows the scope of the material are accounted for according to the Greenhouse Gas topics according to GRI 3-1 and the associated GRI (GHG) Protocol and reported as CO equivalents. standards. There are no associated GRI standards Besides CO 22 The 2023 Sustainability Report is the fourth 22, this also includes other greenhouse sustainability report of the Hilti Group. The report also for the “Employee Engagement” and “Hazardous gases de昀椀ned by the Kyoto protocol. contains information provided by the Hilti Foundation. Substances” topics. We have therefore referred directly to the corresponding pages in the report to 昀椀nd the The reporting period is the 2023 昀椀nancial year from We have determined Scope 1 emissions for the Group January 1 to December 31, 2023. Deviating reporting management approach. The management approaches using energy consumption and local emission factors. periods of data or content are shown separately. The to the topics “Waste”, “Water Ef昀椀ciency” and We use real information on gas and oil consumption in editorial deadline was March 8, 2024. We are reporting “Contaminant Emissions” have been combined and our buildings, as well as vehicle fuel consumption in our annually on our progress. The next Sustainability are reported jointly in the “Environmental Protection” market organizations. We included estimates for locations Report will therefore be published in 2025. chapter. The management approaches to the topics and time intervals where no consumption data were “Employee Engagement”, “Inclusion & Diversity”, available. For the last two months of the reporting period, The report is based on the internationally recognized “Learning & Development” and “Work-Life Balance” we systematically generated estimated data. These reporting framework of the Global Reporting Initiative have been combined and reported jointly in the “Our estimates are based on, for example, prior period data, (GRI). This report has been prepared with reference to Culture of Engagement” chapter. average consumption per car (vehicles), per square meter the GRI Standards. (warehouses), per repair output hour (repair centers), per GRI Content Index: p. 70 Data and content employee (of昀椀ce buildings) or per building (Hilti stores). The forward-looking statements made in the report are We account for our Scope 2 CO emissions using a 22 based on internal assessments of future developments Quantitative sustainability reporting at Hilti is still under market-based approach, assuming that there are zero that are subject to uncertainties and are not under the development. Therefore, we are not yet able to report Scope 2 emissions for green electricity. We source control of Hilti. The report is published in English only. standardized Group data but have different data bases green electricity globally in the form of certi昀椀cates depending on the topic. The content and data were (RECs or GOOs). Additionally, we generate our own determined using surveys in the respective departments, photovoltaic electricity in some of our locations. We Material topics and their delimitation globally available information, and estimates. The data included estimates for locations and time intervals published in this Sustainability Report was collected where no consumption data were available. For the last The material topics for Hilti were identi昀椀ed using and processed with the highest degree of accuracy. two months of the reporting period, we systematically a materiality analysis based on the principles Nevertheless, we cannot completely exclude the generated estimated data. These estimates are based formulated by the GRI, such as stakeholder possibility of transmission errors. on, for example, prior period data, average consumption engagement, considering impacts in the context per car (vehicles), per square meter (warehouses), per of business activities and relationships, materiality For calculation reasons, rounding differences of ± one repair output hour (repair centers), per employee (of昀椀ce and completeness. In addition, general reporting unit (CHF, % etc.) may occur in the tables. buildings) or per building (Hilti stores). principles were observed: accuracy, balance, clarity, comparability, completeness, sustainability context, CO calculations We analyzed and evaluated our Scope 3 emissions in 22 the upstream and downstream stages of our value chain timeliness and veri昀椀ability. Sustainability Management: p. 4 This Sustainability Report contains data on Scope 1, and identi昀椀ed eleven categories which are applicable for Scope 2 and Scope 3 CO emissions. These emissions Hilti. For the calculation of Scope 3 emissions in every 22 category, different methods are used.
• For Category 1 (Purchased Goods and Services), are combined with the relevant waste weights to • For Category 11 (Use of Sold Products), an for direct materials, an average-data method is calculate the Scope 3 emissions. average-data method is used to calculate the used where possible. Cradle-to-gate greenhouse Scope 3 emissions. gas (GHG) emission factors were combined with • For Category 6 (Business Travel), Scope 3 GHG their respective material weights to generate their emissions are calculated from the distance traveled • For Category 12 (End-of-Life Treatments of Sold Scope 3 GHG emissions. For weight categories by transport method for business-related activities. Products), a waste type-speci昀椀c method is used with no associated emission factor, line items with This primary emissions data is provided by travel to calculate the Scope 3 emissions. Emission no associated weight and for indirect procurement agencies. For Hilti organizations with spending for factors for speci昀椀c waste types and waste treatment spending, a spend-based method is used. If business travel but no data for distance traveled, methods are combined with the relevant waste available, data from suppliers were preferred over a spend-based method is used. Spending on weights to calculate the Scope 3 emissions. average data or spend data. passenger transport, hotels and restaurants is excluded from the indirect procurement spending Waste data • For Category 2 (Capital Goods), a spend-based ledger in Category 1 to prevent double counting. method is used to calculate the Scope 3 GHG Waste data is collected at our operational sites: in all emissions. The total capital expenditure is used as • For Category 7 (Employee Commuting), a distance- plants and approximately 90 percent of the logistics input for using the spend-based method. The country based method is used for headquarters locations centers (by volume) and 78 percent of the repair of the supplier is assumed to be the same as the and an average-data method is used for other centers (by repair output). Waste from of昀椀ces buildings country of the purchasing Hilti organization. locations to calculate the Scope 3 emissions. The and Hilti Stores is not included, but also considered analysis of employee commuting is calculated insigni昀椀cant compared to the operational sites. • For Category 3 (Fuel and Energy Related Activities), from detailed commuting distance data and the an average-data method is used to calculate the Hilti Mobility Management online survey for the Water data Scope 3 emissions. Well-to-Tank (WTT) emissions headquarters in Liechtenstein, and from headcount factors are combined with fuel usage and electricity by country for the other locations. Water data is collected at our plants. We have not consumption of our own operations to calculate included water consumption in our logistics and repair eam Leased Assets), an Scope 3 emissions. Electricity consumption emission • For Category 8 (Upstr centers, of昀椀ce buildings and Hilti stores. factors include both generation and transmission & asset-speci昀椀c method is used to calculate the distribution. Scope 3 emissions. Data on circularity • For Category 4 (Upstream Transportation and • For Category 9 (Downstream Transportation and The calculation basis of the quantitative circularity score Distribution), a distance-based method is used. Distribution), the analysis is calculated from the covers various periods from 2022 and 2023. Purchasing The weight-distance values are combined with the downstream transport of products and the revenue of and sales volumes were included in the period appropriate weight-distance emission factors to retailers attributed to Hilti products. A spend-based from 08/22 to 07/23, production data from 07/22 to calculate the Scope 3 emissions. The basis for weights method is used for downstream retailers to calculate 06/23 and transport packaging from 07/22 to 06/23. used are statements from the deliveries from Hilti’s the Scope 3 emissions. Speci昀椀cally for the retailer ERP system (inbound, replenishment and last mile). “Motek”, the downstream transport Scope 3 emissions Employees are calculated from Motek’s Carbon Accounting • For Category 5 (Waste Generated in Operations), Report as a proportion of Motek’s downstream We record data on our employees throughout the a waste-type-speci昀椀c method is used to calculate transport emissions equal to the proportion of revenue Group. Except for employee retention numbers, all the Scope 3 emissions. Emission factors for attributed to Hilti products. For the rest of the data relates to the reporting date of December 31. All speci昀椀c waste types and waste treatment methods retailers, a spend-based estimate is used. data are headcount 昀椀gures. Apprentices, trainees and interns are included in the total number of employees.
Material topic Relevance Related GRI standard(s) within Hilti externally Environment CO22 x x 305 Emissions 2016 302 Energy 2016 Circularity x x 301 Materials 2016 306 Waste 2020 Waste x x 306 Water 2020 Water Ef昀椀ciency x x 303 Water and Ef昀氀uents 2018 Contaminant Emissions x x 303 Water and Ef昀氀uents 2018 Supplier Sustainability 204 Procurement Practices 2016 x 308 Supplier Environmental Assessment 2016 414 Supplier Social Assessment 2016 People User Health & Safety x 416 Customer Health and Safety 2016 Building Safety x 416 Customer Health and Safety 2016 Hazardous Substances x Page 27 –30 Employee Health & Safety x 403 Occupational Health and Safety 2018 Employee Engagement x Page 44 – 46 Inclusion & Diversity x 405 Diversity and Equal Opportunity 2016 Learning & Development x 404 Training and Education 2016 Work-life Balance x 401 Employment 2016 Society Social Impact x x 413 Local Communities 2016 2–27 Compliance with Laws and Regulations 2021 202 Market Presence 2016 205 Anti-corruption 2016 206 Anti-competitive Behavior 2016 402 Labor/Management Relations 2016 Business Ethics x x 406 Non-discrimination 2016 407 Freedom of Association and Collective Bargaining 2016 408 Child Labor 2016 409 Forced or Compulsory Labor 2016 415 Public Policy 2016 417 Marketing and Labeling 2016 418 Customer Privacy 2016
AUDITORS’ LIMITED ASSURANCE REPORT INDEPENDENT PRACTITIONER’S LIMITED ASSURANCE REPORT on selected indicators in the 2023 Sustainability Report to the Board of Directors of Hilti Aktiengesellschaft, Schaan We have been engaged by Board of Directors to perform Inherent limitations Independence and quality management assurance procedures to provide limited assurance on selected indicators in the 2023 Sustainability Report The accuracy and completeness of the selected We are independent of the Hilti Aktiengesellschaft (including the GHG statement) of Hilti Aktiengesellschaft indicators (including the GHG statement) are subject in accordance with the International Code of Ethics for the period from 1 January 2023 to 31 December to inherent limitations given their nature and methods for Professional Accountants (including International 2023. The selected indicators will be published in the for determining, calculating and estimating such data. Independence Standards) issued by the International Sustainability Report 2023. In addition, the quanti昀椀cation of the selected indicators Ethics Standards Board for Accountants (IESBA Code). (including the GHG statement) is subject to inherent We have ful昀椀lled our other ethical responsibilities in The following selected 2023 indicators were subject to uncertainty because of incomplete scienti昀椀c knowledge accordance with the IESBA Code, which is founded our engagement (“selected indicators”): used to determine factors related to the selected on fundamental principles of integrity, objectivity, indicators (including the GHG statement) and the professional competence and due care, con昀椀dentiality • Environment (pages 18,19 and 29 of the values needed to combine e.g. emissions of different and professional behaviour. 2023 Sustainability report) gases. Our assurance report will therefore have to be • Table “Energy consumption”; read in connection with the suitable criteria used by PricewaterhouseCoopers AG applies International • Total Scope 1, Scope 2 GHG emissions and Total Hilti Aktiengesellschaft. Standard on Quality Management 1, which requires Scope 3 emissions in table “CO emissions” the 昀椀rm to design, implement and operate a system of 22 quality management including policies or procedures • Total Water consumption in plants Board of Directors’ responsibility regarding compliance with ethical requirements, • People (page 54 of the 2023 Sustainability report) The Board of Directors of Hilti Aktiengesellschaft professional standards and applicable legal and • Employee Health and Safety – table “Employee is responsible for preparing and presenting the regulatory requirements. accidents during work” Environment and People in accordance with the suitable criteria. This responsibility includes the Practitioner’s responsibility The 2023 Sustainability Report was prepared by design, implementation and maintenance of the the Management of Hilti Aktiengesellschaft (the internal control system related to the preparation of Our responsibility is to perform an assurance ‘Company’) based on the guidelines for sustainability the selected indicators (including the GHG statement) limited engagement and to express a conclusion reporting of the Global Reporting Initiative, the “GRI that are free from material misstatement, whether due on the Environment and People (including the Standards” (latest versions) and the Greenhouse Gas to fraud or error. Furthermore, the Board of Directors GHG statement). We conducted our engagement (GHG) Protocol Corporate Standard. The Company is responsible for the selection and application of the in accordance with the International Standard on presents its Basis of reporting in the section “About this suitable criteria. Assurance Engagements (ISAE) 3000 (Revised) Report” in the 2023 Sustainability Report, from page ‘Assurance engagements other than audits or 65 to 67 (the “suitable Criteria”).
reviews of historical 昀椀nancial information’ and the • Inquiries and detailed walkthroughs with relevant responsibility (legal or otherwise) or accept liability for, International Standard on Assurance Engagements stakeholders for the selected indicators 2023 in or in connection with, any other purpose for which our 3410, Assurance Engagements on Greenhouse Gas the 2023 Sustainability Report (including the GHG report including the conclusion may be used, or to Statements (‘ISAE 3410’), issued by the International statement); any other person to whom our report is shown or into Auditing and Assurance Standards Board. Those whose hands it may come, and no other persons shall standards require that we plan and perform our • Inspection of process and control descriptions and be entitled to rely on our conclusion. procedures to obtain limited assurance whether other internal guidelines and relevant documents; anything has come to our attention that causes us to We permit the disclosure of our report, in full only and believe that the Environment and People (including the • Analytical procedures; in combination with the suitable Criteria, to enable GHG statement) was not be prepared, in all material the Board of Directors to demonstrate that they aspects, in accordance with the suitable criteria. • Reperformance of relevant calculations (including the have discharged their governance responsibilities by GHG statement); commissioning an independent assurance report over Based on risk and materiality considerations, we selected indicators in the 2023 Sustainability Report performed our procedures to obtain suf昀椀cient and • Additional assurance procedures as deemed (including the GHG statement), without assuming or appropriate assurance evidence. The procedures necessary (e.g. sample based source tracing); accepting any responsibility or liability to any third selected depend on the assurance practitioner’s parties on our part. To the fullest extent permitted judgement. A limited assurance engagement under • Local level procedures (site visits to inspect local by law, we do not accept or assume responsibility ISAE 3000 (Revised) and ISAE 3410 is substantially processes and reconcile source evidence). to anyone other than the Board of Directors of Hilti less in scope than a reasonable assurance engagement Aktiengesellschaft for our work or this report. in relation to both the risk assessment procedures, We believe that the evidence we have obtained is including an understanding of internal control, and the suf昀椀cient and appropriate to provide a basis for our PricewaterhouseCoopers AG procedures performed in response to the assessed conclusion. risks. Consequently, the nature, timing and extent Stefan Räbsamen Petar Lesic of procedures for gathering suf昀椀cient appropriate Conclusion evidence are deliberately limited relative to a reasonable Zürich, 14 March 2024 assurance engagement and therefore less assurance is Based on the work we performed, nothing has come obtained with a limited assurance engagement than for to our attention that causes us to believe that selected ‘The maintenance and integrity of Hilti Aktiengesellschaft’s a reasonable assurance engagement. indicators (including the GHG statement) of Hilti website and its content are the responsibility of the Board of Aktiengesellschaft for the period from 1 January 2023 to Directors; the work carried out by the assurance provider does We performed the following procedures, among others: 31 December 2023 are not prepared, in all material not involve consideration of the maintenance and integrity respects, in accordance with the suitable criteria. of the Hilti Aktiengesellschaft’s website, accordingly, the • Assessing the suitability in the circumstances of assurance providers accept no responsibility for any changes Company’s use of the suitable criteria, applied as Intended users and purpose of the report that may have occurred to the reported Environment and People explained in the Basis of reporting in the section (including the GHG statement) or suitable Criteria since they “About this Report” on the pages 65 to 67 in the This report is prepared for, and only for, the Board of were initially presented on the website. 2023 Sustainability Report (including the GHG Directors of Hilti Aktiengesellschaft, and solely for the statement) to the selected indicators in the purpose of reporting to them on the selected criteria 2023 Sustainability Report (including the GHG (including the GHG statement) and no other purpose. statement); We do not, in giving our conclusion, accept or assume
GRI CONTENT INDEX GRI 1: Foundation 2021 Hilti Group has reported the information cited in this GRI content index for the period January 1, 2023 and December 31, 2023 with reference to the GRI Standards. GRI Standard Disclosure Location UNGC 1 GRI 2 General Disclosures 2021 GRI 2-1 Organizational details p. 3; Financial Report 2023: Chapter “Group at a Glance” GRI 2-2 Entities included in the organization’s sustainability reporting Financial Report 2023: p. 19 GRI 2-3 Reporting period, frequency and contact point p. 65, 75 GRI 2-4 Restatements of information p. 19, p. 30 GRI 2-5 External assurance p. 68 GRI 2-6 Activities, value chain and other business relationships www.hilti.group Company Report 2023: “Get to Know Hilti” GRI 2-7 Employees p. 4ff., 49 ff. GRI 2-8 Workers who are not employees p. 50 GRI 2-9 Governance structure and composition Financial Report 2023: Chapter “Corporate Governance”; Company Report 2023: “Board of Directors” and “Executive Board” GRI 2-10 Nomination and selection of the highest governance body Financial Report 2023: Chapter “Corporate Governance”; Company Report 2023: “Board of Directors” and “Executive Board” GRI 2-11 Chair of the highest governance body Company Report 2023: “Board of Directors” GRI 2-12 Role of the highest governance body in overseeing the management of impacts The Corporate Sustainability Team regularly presents relevant sustainable development topics from within the organization and outside the organization to the Board of Directors GRI 2-13 Delegation of responsibility for managing impacts p. 9 ff. GRI 2-14 Role of the highest governance body in sustainability reporting p. 10 ff. GRI 2-15 Con昀氀icts of interest p. 57 GRI 2-16 Communication of critical concerns Financial Report 2023: Chapter “Corporate Governance” GRI 2-17 Collective knowledge of the highest governance body The Corporate Sustainability Team regularly presents relevant sustainable development topics from within the organization and outside the organization to the Board of Directors GRI 2-18 Evaluation of the performance of the highest governance body Financial Report 2023: Chapter “Corporate Governance" and Note “Related Parties” GRI 2-19 Remuneration policies Financial Report 2023: Note “Related Parties” 1 The numbers refer to the relevant 10 principles of the UN Global Compact.
GRI Standard Disclosure Location UNGC 1 Hilti uses standardized salary group structures for all functions and in all countries and regularly reviews them. This includes a reasonable compensation range for each position, to ensure compensation is set based on the position and free from any discriminatory factors, as well as in GRI 2-20 Process to determine remuneration compliance with local minimum wage regulations. A gender pay equity review is performed every two years. For more information, refer to Financial Report 2023: Note “Personnel expenses” GRI 2-22 Statement on sustainable development strategy p. 3, 4 ff.; Financial Report 2023: Chapter “Management Report” GRI 2-23 Policy commitments p. 57 GRI 2-24 Embedding policy commitments p. 31 ff., 45, 56 ff. GRI 2-25 Processes to remediate negative impacts p. 56 ff. 1, 2 GRI 2-26 Mechanisms for seeking advice and raising concerns p. 58 See Company Report: “Business Ethics” GRI 2-27 Compliance with laws and regulations There were no major incidents reported in accounting or tax fraud, corruption, bribery, competition, the provision of products and services, or labor issues. Swissmem EPTA – European Power Tool Association ZVEI – Zentralverband Elektrotechnik- und Elektronikindustrie e. V. GRI 2-28 Membership associations European Committee for Standardization European Organization of Technical Assessment International Code Council UNGC GRI 2-29 Approach to stakeholder engagement p. 10 ff. GRI 2-30 Collective bargaining agreements We have collective agreements in all countries where it is legally required. We ensure that all 3 employees are paid in line with the market. GRI 3 Material Topics 2021 GRI 3-1 Process to determine material topics p. 7 ff. GRI 3-2 List of material topics p. 7, 67 GRI 3-3 Management of material topics p. 7 GRI 201 Economic Performance 2016 GRI 201-2 Financial implications and other risks and opportunities due to climate change p. 13 ff. GRI 202 Market Presence 2016 Hilti uses standardized salary group structures for all functions and in all countries and regularly GRI 202-1 Ratios of standard entry level wage by gender compared to local minimum wage reviews them. This includes a reasonable compensation range for each position, to ensure compen- sation is set based on the position and free from any discriminatory factors, as well as in compliance with local minimum wage regulations. A gender pay equity review is performed every two years.
GRI Standard Disclosure Location UNGC 1 GRI 204 Procurement Practices 2016 GRI 204-1 Proportion of spending on local suppliers p. 31 GRI 205 Anti-corruption 2016 GRI 205-1 Operations assessed for risks related to corruption Corruption risk assessment conducted for all entities globally 10 GRI 205-2 Communication and training about anti-corruption policies and procedures p. 32, 57, 60 10 GRI 205-3 Con昀椀rmed incidents of corruption and actions taken We are not aware of any con昀椀rmed cases of corruption in the Group. 10 GRI 206 Anti-competitive Behavior 2016 GRI 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices There are no legal proceedings pending due to anti-competitive behavior or the formation of anti-trust or monopolies. GRI 301 Materials 2016 GRI 301-1 Materials used by weight or volume p. 23 8 GRI 301-2 Recycled input materials used p. 23 ff. 8, 9 GRI 301-3 Reclaimed products and their packaging materials p. 26 8, 9 GRI 302 Energy 2016 GRI 302-1 Energy consumption within the organization p. 18 ff. 8 GRI 302-3 Energy intensity p. 18 GRI 302-4 Reduction of energy consumption p. 18, 27 ff. 8, 9 GRI 303 Water & Ef昀氀uents 2018 7, 8 GRI 303-1 Interactions with water as a shared resource p. 27 ff. 7, 8 GRI 303-2 Management of water discharge-related impacts p. 27 ff. GRI 303-5 Water consumption p. 29 GRI 305 Emissions 2016 GRI 305-1 Direct (Scope 1) GHG emissions p. 14, 15, 17 ff. 8 GRI 305-2 Energy indirect (Scope 2) GHG emissions p. 14, 15, 17 ff. 8 GRI 305-3 Other indirect (Scope 3) GHG emissions p. 14, 17 ff. 8 GRI 305-4 GHG emissions intensity p. 19 8 GRI 305-5 Reduction of GHG emissions p. 13 ff. 8, 9 GRI 306 Waste 2020 GRI 306-1 Waste generation and signi昀椀cant waste-related impacts p. 28 ff. GRI 306-2 Management of signi昀椀cant waste-related impacts p. 27 ff. GRI 306-3 Waste generated p. 19, 30 8 GRI 306-4 Waste diverted from disposal p. 23, 26, 28 GRI 306-5 Waste directed to disposal p. 25, 28
GRI Standard Disclosure Location UNGC 1 GRI 308 Supplier Environmental Assessment 2016 GRI 308-1 New suppliers that were screened using environmental criteria p. 31 ff. GRI 401 Employment 2016 GRI 401-1 New employee hires and employee turnover p. 49 GRI 403 Occupational Health and Safety 2018 GRI 403-1 Occupational health and safety management system p. 51 ff. GRI 403-2 Hazard identi昀椀cation, risk assessment, and incident investigation p. 52, 54 GRI 403-3 Occupational health services p. 52 GRI 403-4 Worker participation, consultation, and communication on occupational health p. 54 and safety GRI 403-5 Worker training on occupational health and safety p. 53 GRI 403-6 Promotion of worker health p. 48 GRI 403-7 Prevention and mitigation of occupational health and safety impacts directly p. 54 linked by business relationships GRI 403-8 Workers covered by an occupational health and safety management system p. 51 GRI 403-9 Work-related injuries p. 54 GRI 404 Training and Education 2016 GRI 404-2 Programs for upgrading employee skills and transition assistance programs p. 47 GRI 404-3 Percentage of employees receiving regular performance and career development p. 47 reviews GRI 405 Diversity and Equal Opportunity 2016 GRI 405-1 Diversity of governance bodies and employees p. 49 6 GRI 405-2 Ratio of basic salary and remuneration of women to men p. 47 6 GRI 406 Non-discrimination 2016 GRI 406-1 Incidents of discrimination and corrective action taken We have implemented an anti-discrimination policy. Violations can be reported via our various compliance tools. No cases were known during the reporting year. GRI 407 Freedom of Association and Collective Bargaining 2016 GRI 407-1 Operations and suppliers at which the right to freedom of association and All suppliers are committed to maintaining the highest ethical standards. In cases of suspicion, 3 collective bargaining may be at risk external audits are carried out. GRI 408 Child Labor 2016 GRI 408-1 Operations and suppliers at signi昀椀cant risk for incidents of child labor All suppliers are committed to maintaining the highest ethical standards. In cases of suspicion, 5 external audits are carried out.
GRI Standard Disclosure Location UNGC 1 GRI 409 Forced or Compulsory Labor 2016 GRI 409-1 Operations and suppliers at signi昀椀cant risk for incidents of forced or compulsory All suppliers are committed to maintaining the highest ethical standards. In cases of suspicion, 4 labor external audits are carried out. GRI 413 Local Communities 2016 GRI 413-1 Operations with local community engagement, impact assessments, and p. 7, 16, 62 ff. development programs GRI 413-2 Operations with signi昀椀cant actual and potential negative impacts on local We do not engage in business activities with signi昀椀cant or potential negative impacts on local communities communities. GRI 414 Supplier Social Assessment 2016 GRI 414-1 New suppliers that were screened using social criteria p. 31 ff. GRI 415 Public Policy 2016 GRI 415-1 Political contributions As a matter of principle, Hilti does not support any political parties. GRI 416 Customer Health and Safety 2016 GRI 416-1 Assessment of the health and safety impacts of product and service categories Hilti examines all products with regard to their impact on the health and safety of users and building occupants. GRI 417 Marketing and Labeling 2016 GRI 417-2 Incidents of non-compliance concerning product and service information and We are not aware of incidents in the reporting year. labeling GRI 417-3 Incidents of non-compliance concerning marketing communications We are not aware of incidents in the reporting year. GRI 418 Customer Privacy 2016 GRI 418-1 Substantiated complaints concerning breaches of customer privacy and losses To our knowledge, there were no substantiated complaints in the reporting year. of customer data
PUBLICATION DETAILS Publisher We would like to thank our customers, employees and Hilti Corporation partners for their support. The sustainability report is Corporate Sustainability published in English. Duplication, even in part, only with PO Box 333, 9494 Schaan, Liechtenstein permission of the publisher. Editor-in-chief The complete sustainability report, the principles of Peter Rupp corporate governance, the Group organizational chart, a list of consolidated companies and information on the Contact Martin Hilti Family Trust can be found on the Internet at [email protected] www.hilti.group. Concept Our Communication on Progress (CoP) 2023 for Kirchhoff Consult AG (Hamburg, Germany), the UN Global Compact is fully integrated into this Hilti Corporate Sustainability sustainability report. Editorial team, text Lead: Lukas Vogt Team: Chris Larson, Patricia Minogue, Alexandra Risch, Iris Schmutz, Katrin Walser-Kessler Design Kirchhoff Consult AG, Benno Erhardt (Hilti) Photography Hilti AG Image processing Kirchhoff Consult AG Production Kirchhoff Consult AG, Katrin Walser-Kessler (Hilti)
