Sustainably enhancing quality of lifeSustainability Report 2007
Geberit AG
Schachenstrasse 77
CH-8645 Jona
T +41 (0) 55 221 63 00
F +41 (0) 55 221 67 47
www.geberit.com
Sustainably enhancing quality of life
Geberit’s objective is a sustained improvement in the quality of people’s
lives through innovative solutions in plumbing technology, thus assuming
economic, ecological, and social responsibility. This is how Geberit inter-
prets sustainability.
Geberit is the European market leader in plumbing technology and is globally
oriented. The products, systems and services are continuously being further de-
veloped and set new standards. This is only possible thanks to the top-level
performance of our employees and long-term partnerships with companies and
organizations from the fields of business, research and society. Because this
is always a matter of dialog and cooperation with people, we allow these to have
their say in our Sustainability Report 2007. Our central theme of water – in all its
manifestations – forms the backdrop for this.
Contents
2 ForewordbytheCEO
4 TheGeberitGroup
6 Ourproductsandourproductknow-how
8 Apracticedcommitmenttosustainability
12 Amarketleaderwithafocus
16 Satisfiedcustomersthankstonewstandardsinplumbingtechnology
22 Thinking,shaping,changing:workingforGeberit
28 Innovationfactoryforsustainableproducts
34 Responsiblemanagementofproductionandprocurement
40 Socialcommitment
44 CorporateGovernance
46 GlobalReportingInitiative–indexofcontents
47 Aboutthisreport
Coverpicture:ApprenticesfromGeberitPottenbrunn(AT)
“Geberithasshownthateconomicsuccess,acting
inanenvironmentallyfriendlymannerandsocialbalance
arenotacontradictioninterms.”
AlbertM.Baehny,ChiefExecutiveOfficer(CEO)
ForewordbytheCEO
Mr. Baehny, following on from 2004, Geberit is now publishing its second
Sustainability Report. Why?
Sustainabilityandsocialresponsibilityarecloselyinterrelatedandareimportant
subjectsforus.Geberithasshownthateconomicsuccess,actinginanenviron-
mentallyfriendlymannerandsocialbalancearenotacontradictioninterms.
Onthecontrary,weregardsustainabilityasanopportunitytogodownnewroads.
TheGeberitGroupwishestomaintainitstoppositionamongstitscompetitors
inthefieldofsustainabilityandthustocontinuetobearolemodelfortheindustry
infuture.
2 GeberitSustainabilityReport2007
ForewordbytheCEO
What activities are affected above all by the subject of sustainability?
Sustainabilityhasaninfluenceonourstrategicorientationandisthebasisfornumerous
decisions.Inresearchanddevelopment,wefocusonincreasingtheenvironmental
performanceofourproductsandthequalityoflifeofourcustomers.Inproduction,effi-
ciencywithoutexhaustingresourcesistraditionallyattheforefront.Wealsopayparti-
cularattentiontotheprocurementofrawmaterialsandsemi-finishedproducts,whichis
noworganizedonaglobalscale.Alsoofimportanceforusisahumanresourcespolicy
whichcanmaintaintheframeworkconditionsforgoodteamworkandvalue-oriented
leadershipatahighlevelduringperiodsofgrowth.Notonlyisourpracticedcommitment
tosustainabilityrecognizableinalloftheseactivities,butalsoourcommitmenttosocial
matters.
What has Geberit achieved in the field of sustainability over the past three years?
WehaveachievedalmostalltheobjectivessetoutintheSustainabilityReport2004;
somehaveevenbeenexceeded.Theeconomicareadistinguisheditselfthroughsus-
tainedgrowthwithhighoperatingprofitability.Intermsofproducts,wehavesucceeded
inachievingmoreeconomicwaterconsumptionandimprovedstandardsinhygiene
andacousticinsulation.Ourenvironmentalmanagementinproductionhasbeenfurther
expanded.SinceJanuary2007,wehaveheldacombinedGroupQualityandEnviron-
mentCertificateasperISO9001andISO14001.Inaddition,wehaveextendedourrisk
managementindealingswithsuppliersandcarryoutmoreprecisechecks,above
allconcerningenvironmentalandsocialrisks.Inthehumanresourcessector,wehave
evaluatedanemployeesurveyandreactedwithconcretemeasures:Wecannow
drawonaGroup-widesystemofpersonnelandsocialreporting.Newguidingprinciples
andacodeofconductarecurrentlybeingintroducedthroughouttheGroupand
implementedtogetherwithouremployees.Ourwishistoreportinatransparentand
clearlyunderstandablemanneronobjectives,measuresandresults.Thisiswhy,for
thefirsttime,wearenowpublishingtheSustainabilityReportinaccordancewiththe
guidelinesoftheGlobalReportingInitiative(GRI).
What are the fundamental challenges for the coming years?
Geberitwishestocontinueitsworldwidegrowthinfutureandtobemeasuredagainst
theyardstickofsustainability.Weshallpayparticularattentiontotwotrends:Ontheone
hand,theincreasedneedofpeoplefordesign-oriented,attractiveandlargebathrooms.
Atthesametime,wearewitnessingincreasinginterestinplumbingsystemsthatuse
lesswater,causelessnoiseandadheretohighstandardsofhygiene.Weinterpretthis
doubleneedasamandateforresponsiblecontinuationofourgrowthcourse.
GeberitSustainabilityReport2007 3
TheGeberitGroup
Acompanyhistorydatingbackmorethan130years
Salesof2.2billionSwissFrancsandanoperatingcashflowmarginof26%in2006
5,269employeesin40countries
17productionlocationsworldwide
TheGeberitGroup,withitsheadquartersinRapperswil-Jona(CH),istheEuro-
peanmarketleaderinplumbingtechnologyandisgloballyoriented.Sinceits
foundationin1874,thecompanyhasbeenoneofthepioneersintheindustry
andhasalwayssetnewtrendswithcomprehensivesystemsolutions.
In2006,Geberitachievedsalesof2.2billionSwissFrancsandcontinuedthe
pleasingandsustaineddevelopmentinprofitabilityofthepastseveralyears
withanoperatingcashflowmarginof26.1%.TheGroupemploysapproximately
5,300peopleworldwide.ThecompanyhasbeenlistedontheSwissStock
Exchangesince1999.
European market leader with a global presence
Geberithasownrepresentativesinaround40countries.Theproductsaresold
in100countriesthroughouttheworld.Thesalesemphasisisonthemain
Europeanmarkets.OutstandinggrowthperspectivesexistinCentralandEast-
ernEurope,France,UnitedKingdom,theIberianpeninsula,theNordiccoun-
tries,NorthAmerica,ChinaandSouthEastAsia.TheAsianandNorthAmerican
marketsareworkedwithproductsadaptedtoregionalrequirements.Tothis
end,localcompetencecentersexistinShanghai(CN)andChicago(US).
Thecompanyhas17specializedproductionlocationsineightdifferentcountries
closetothemostimportantsalesmarkets.Themainproductionplantsare
locatedinGermany,AustriaandSwitzerland.TheGroupalsooperatesproduc-
tionplantsintheUSAandChina.
Sales 2006 by markets
Germany(34.3%)
Italy(12.1%)
Switzerland(11.6%)
Benelux(8.4%)
Central/EasternEurope(5.9%)
Austria(5.9%)
Nordiccountries(4.2%)
UnitedKingdom/Ireland(4.1%)
France(3.4%)
Iberianpeninsula(1.7%)
MiddleEast/Africa(1.7%)
America(5.2%)
FarEast/Pacific(1.5%)
4 GeberitSustainabilityReport2007
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Focused product range in the field of plumbing technology
Theproductrangewasconceivedbothfornewconstructionaswellasforreno-
vationsandmodernizations.Itincludessixproductlinesintheproductareas
ofsanitarysystems(installationandflushingsystems,wastefittingsandtraps,
public)andpipingsystems(buildingdrainagesystems,supplysystems).
Close cooperation along the entire value chain
Geberitbrandedproductsareinnovative,durableandenvironmentallyfriendly
goodsfortradecustomersandcraftsmen,aswellasforendusers.In2006,
thecompanyprovidededucationandfurthertraininginGeberitsystemsand
softwaretoolsforaround30,000plumbersandplanners,aswellasforarchi-
tects,atthecompany’sown25informationcentersinEuropeandoverseas.In
thisway,aswellasthroughdirectadvisingoftheplumbersontheconstruc-
tionsite,demandforGeberitproductsisstimulated.Inthemainsalesareaof
Europe,theproductrangeisdistributedexclusivelyviathewholesaleplumbing
trade.Inadditiontorawmaterialssuchasmetalsandplastics,semi-finished
productsandspecializedcomponentsarealsoprocuredfromexternalsources.
Geberitattachesgreatimportancetodevelopingacloseandlong-termcooper-
ationwithallsuppliers.
TheGeberitGroup
Sales 2006 by product areas and product lines
Sanitary systems (55.4%)
Installationsystems(34.1%)
Flushingsystems(10.0%)
Public(6.7%)
Wastefittingsandtraps(4.6%)
Piping systems (44.6%)
Buildingdrainagesystems(16.5%)
Supplysystems(28.1%)
GeberitSustainabilityReport2007 5
Geberitofferscustomershigh-qualitysystemsolutionsforapplicationsinprivate
residentialbuildingandinpublicbuildings.Thesystemsareusedinbothreno-
vationprojectsaswellasinnewbuildings.Abroadrangeofproductsisoffered
withinthetwoproductareassanitaryandpipingsystems.Thisrangesfrom
installationsystems,concealedandexposedcisterns,includingWCandurinal
flushingsystemsaswellaslavatorytapsandtraps,throughtofreshwater,
roofdrainageanddrainagesystems.GreatimportanceisattachedtopreWall
technologywhichcreatesclearadvantagesforallpartners,inparticularduring
renovationwork.Inthisway,Geberitwishestoevenfurtherpenetrateexisting
marketsandtodevelopnewones.
Thecompanymakesresoluteandconsistentuseofitsextensiveexpertknowl-
edgeinthecreationofinnovations.Bysodoing,itmakesuseofsynergies
andoptimizestheefficiencyofentiresystems.Thismannerofthinkingandacting
isembodiedbythecentralKnow-HowInstalledidea.Amongstotherthings,
theresearchteamsconcernthemselveswithhydraulics,statics,fireprotection,
hygiene,acousticsandelectronics.
Ourproductsandourproductknow-how
6 GeberitSustainabilityReport2007
TheGeberitGroup
GeberitSustainabilityReport2007 7
Apracticedcommitmenttosustainability
Sustainabilityasacentralthemesince1990
Over4,500millionm3ofwatersavedthroughGeberitproductsuntil2006
Activedialogconcerningsustainabilitywithpartnersandstakeholders
HowdoesGeberitinterpretresponsibilityintermsofsustainabilityandwhich
aspectsofsustainabledevelopmenthaveaparticularinfluenceonGeberit?
Sustainabilitymeanssatisfyingtherequirementsofthepresent-daygenerationin
amannerthatwillensureagoodfoundationforfuturegenerations.Acore
questioninthisrespectistheincreasingconsumptionofnaturalresourcessuch
aswaterandenergy.
Water as a central theme
Geberit’ssustainabilitystrategyandtheobjectivesderivedfromitarebasedon
globaltrendssuchastheincreasingconsumptionofwater,ensuringhigh
standardsofhygieneaswellasontheexpectationsofinternalandexternalstake-
holders.TheUnitedNationsmillenniumgoalsonsustainabledevelopmentalso
playanimportantrole.Theyincludetheresolvetosignificantlyincreasetheshare
oftheworld’spopulationwithaccesstosafedrinkingwaterandbasicplumbing
facilities.ProductsfromGeberithelpachievethisobjective.
FirmlyestablishedenvironmentalprinciplesobligeGeberittotreatwater,energy
andotherresourcescarefully.Productionismadeasenergy-efficientandresource-
sparingaspossible.Byfarthegreatesteffectisseeninthoseproductsthat
consumewateronadailybasis.Until2006,theentiredualflushandstop-and-
go“fleetofcisterns”fromGeberit–producedsince1998andstillinoperation
today–succeededinsavingover4,500millioncubicmetersofwater.Inthis
respect,theassumptionwasmadethatthewater-savingtechnologymadeit
possibletoreplacecisternswith9-literfullflushing.Thisamountofwaterwould
besufficienttosupplyroughlyaquarterofthepopulationofAfricawithitsan-
nualbasicrequirementofwater(50litersperpersonandday).Innovative,water-
savingproductsystems,combinedwithoutstandinghygieneattributes,are
thusafocusofdiscussiononsustainabilityatGeberit.
8 GeberitSustainabilityReport2007
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Sustainability strategy: objectives and principal measures Area Objective Principalmeasures2007–2009
Economy Geberitenjoyslong-termsuccessthankstoaclearbusinessstrategyanditsresoluteimplemen-tation.
Focusonplumbingtechnology
Commitmenttoinnovation
Selectivegeographicexpansion
Continuousoptimizationofbusinessprocesses
Customers Geberitoffersitscustomersafirst-classandreliableservice,andisperceivedastheleadingsystemproviderinthefieldofhygieneandwatersaving.
Promotingqualifiednext-generationplumbingprofessionalsthroughtargetededucationandfur-thertraining
Increasedapproachtothetargetgrouparchitectsandbuildingownersonthesubjectofsustainabil-ityandsustainablebuilding
Makingbetteruseofthewaterthemeforsensitiz-ingandincreasingcustomerloyalty
Employees Geberitoffersattractiveandsecurejobs.Geberitrespectshumanrightsandlabor-lawstandards.Allformsofcorruptionarerejected.
Processtowardsnewcorporatevaluespreparedjointlywithemployees
WorldwideCodeofConductintroducedin2007bymeansofGroup-wideinformation
Implementationofresultsfromemployeesurveys
Products Geberitproductsareenvironmentallyfriendly,water-savingandensurehighstandardsofhygiene.
SystematicintegrationofenvironmentalaspectsintonewdevelopmentsthroughEco-Design
Searchforalternativestotheproblematichexa-valentchromeinsurfacecoating
Ifpossible,alldisposablepartsfromalternativeplasticsorregenerate
Production Geberitoperatesaclean,safeandenergy-efficientproduction,along-livingandhigh-qualityinfra-structure,andoptimizedlogisticsintermsofenergyconsumption,emissionsandpackaging.
CertificationofallproductionplantsasperISO14001by2008
EstablishindustrialhealthandsafetydelegatealsoatGrouplevel
ImplementGroup-widestrategyonenergyefficiencyandrenewableenergies
Procurement GeberitworksexclusivelywithsupplierswhomakethecommitmenttoadheretotheCodeofConduct.
CodeofConductforsuppliersdrawnupin2007
100%ofsuppliersfromregionswithincreasedsustainabilityriskwillsigntheCodeofConductby2008
Socialcommitment Geberittakesonsocialcommitmentswithacloselinktothecorebusiness,theknow-howandthecorporatecultureandthussupportstheUNmillenniumgoals.
Long-termpartnershipwithnon-governmentalorganization(NGO)inthefieldofbasicplumbingfacilitiesasfrom2007
AccessiontotheUnitedNationsGlobalCompact2008
TheGeberitGroup
GeberitSustainabilityReport2007 9
Geberitexertsaninfluenceontheenvironmentatvariouslevels.Thefocusinthe
productionplantsisonpermanentoptimizationofenergyconsumption.In2006,
all17oftheGroup’splantsusedroughlyasmuchelectricityasasmalltownof
15,000inhabitants.ForGeberit,however,byfarthegreatestinfluenceonenergy
consumptionresultsfromimprovementsintheuseoftheproductsproduced,
aboveallintoiletflushes.Overthecourseoftheirentirelifecycle,thecisterns
producedin2006willrequireatotalofaround16timesasmuchenergy–forthe
provisionanddisposalofthewaterconsumed–astheenergyconsumption
oftheproductionplantsduringayear.Consequently,savingwateralsomeans
savingenergy.
Water-savingdevelopmentsareparticularlyimportant;however,theyarenot
theonlyimportantsustainabilitythemeforGeberit.Sustainedandprofitablegrowth
isthecentraleconomicobjective.Atthesametime,thehighlevelofcustomer
satisfactionandloyaltyshouldberetained.Theover5,000employeesarepaid
inlinewithmarketratesandhaveattractivedevelopmentopportunities.In
additiontoambitiousqualityrequirements,thecooperationwithsuppliersmust
alsotakeaccountofenvironmentalaspectsandtheadherencetohighethical
standards.Soastobeabletopursuethesustainabilitythemesinanintegral
manner,GeberithasdevelopedaSustainabilityStrategywithconcreteobjectives
andmeasures.
Dialog with important partners as part of the corporate culture
Geberitmaintainsaclosedialogwithstakeholdersofparticularrelevanceforthe
workofGeberitorfundamentalforthesuccessofthecompany.Feedbackfrom
thesediscussionsflowsintothesustainabilitystrategy.Contactsinthecourseof
dailydealingswithvariouspartnersofferthebestopportunityfordialog.Addi-
tionally,forexample,customersurveyshavebeencarriedoutonacountrylevel,
thusmakingitpossibletodeterminetheprecisetrainingrequirements.Surveys
amongstemployeeshaveresultedinnewideasformanagementdiscussionsin
ordertodeterminedevelopmentopportunitiesevenmoreeffectively.Initialdis-
cussionswithnewsuppliershaveprovidedadditionalpointsofreferenceforthe
collaborationinenvironmentalandsocialmatters.Andthecontinuousexchange
ofinformationwithnon-profit-makingorganizationsandassociationshas
revealednewoptionsforsocialcommitmentsinlinewiththeGeberitculture.The
ruleapplicablefortheexchangeofinformationwithallpartnersisthatcommu-
nicationiscommittedtothemotto“clearandtrue”.
Engagement in organizations with a sustainability connection
Geberitisinvolvedinvariousassociationsandorganizationsthatmakeacontri-
butiontowardssustainability.Substantialcommitmentsintheperiodunder
reviewwere:
·Aseatonthe“Health,SafetyandEnvironment”workinggroupofTEPPFA(The
EuropeanPlasticsPipesandFittingsAssociation)
·InvolvementintheöbuAssociation(SwissAssociationforEnvironmentally
ConsciousManagement)
·MemberofTransparency,aninternationalorganizationfortheworld-wide
combatingofcorruption
10 GeberitSustainabilityReport2007
ProfAlexanderJ.B.ZehnderisPresidentoftheBoardoftheSwissFederalInstitutesofTech-nology(ETHBoard)andformerDirectoroftheWaterResearchInstitute(Eawag)inDüben-dorf(CH).
Professor Zehnder, what role
does water play in sustainable
development?
Wateristhekeytosustainable
development.Mostinfectiousdis-
easesthroughouttheworldare
transmittedbycontaminatedwater.
Thequalityofdrinkingwaterand
waterforpersonalhygieneisofcen-
tralimportance.Onlyahealthy
populationcanfreeitselffrompov-
erty.Thequantityofwateravailable
isimportantforthegeneration
offoodstuffs.Roughly80percentof
theaverageamountofwatercon-
sumedbyonepersonisrequiredfor
theproductionoffood.Inthisre-
spect,weareincreasinglyrunning
upagainstlimitingfactorsamongst
thegrowingworldpopulation.
Can water-saving technology
make a fundamental contribution
towards solving the problem?
Byallmeans.Thusforexample,effi-
cientplumbingtechnologyensures
thataslittleofthepreciousand
expensivelyprocessedwateras
possibleiswasted.Water-saving
technologycontributestowards
ensuringthatwastewaterisnot
dilutedunnecessarilyandtherefore
thatwastewaterpurificationisno
moreexpensivethannecessary.
Watersavedintheplumbingfieldis
additionalwateravailableforthe
productionoffoodstuffs.
How do you estimate the role of
water scarcity and plumbing tech-
nology in Asia?
Cleanwaterthatisavailableinsuffi-
cientquantitiesisoneofthemost
importantprerequisitesforthesuc-
cessfuldevelopmentofcountries
suchasChina.Asdevelopmentis
onlyjustbeginninginmanycities,
itwouldbepossibletousethelatest
plumbingtechnologyfromthe
verybeginning.Thisisanopportu-
nityforcompaniessuchasGeberit,
wherebylocaltrainingisalso
importantinadditiontotechnical
quality.
It is often said that there is
enough water in Switzerland. Is
saving water of any importance
at all here?
Thepublicwaterinfrastructure
requiresrenewingevery50to80
years.Overthenext20years,
costsofaroundCHF150billionare
reckonedwithinSwitzerland–
thatmeansCHF15,000to20,000
perhead.Savingwaterlowersthe
quantityofwastewaterandthus
long-termcosts.Switzerlandisalso
adevelopmentmarketfortech-
nologyintheplumbingfield–tech-
nologythatisurgentlyneeded
throughouttheworldandwhichthus
offersmajoropportunitiesonthe
worldmarket.
TheGeberitGroup
ThroughthevoluntaryapplicationofthestandardsoftheGlobalReportingInitia-
tive(GRI)inthepresentreport,Geberitismakingacontributiontowardstrans-
parencyandcomparabilityinreportingonsustainability.Geberitiscurrentlynota
formalmemberoftheUnitedNationsGlobalCompact;nevertheless,itorients
itselftowardstheobjectivesofthischarterandalreadymeetsitsrequirementsto
afundamentalextent.
GeberitSustainabilityReport2007 11
Wirtschaft
SinceitsInitialPublicOffering,RemoRosenauhasbeenmonitoringGeberitasananalyst,
holdsregulardiscussionswiththemanagementandvisitstheproductionplants.Sofar,
hehasbeenconvincedbythehighinnovativestrength,theoutstandingfinancialperformance
andbythefactthatactionsmatchwords.AccordingtoRosenau,Geberitcouldalso
contributetoeasingtheincreasingglobalscarcityofwaterthroughitsproducts.Asaresult,
thisshouldalsomeanexcellentopportunitiesontheworldmarketinfuture,enablingthe
creationoflong-termvalueashasbeenthecaseinthepast.
“Geberitisamasterofinnovation.”RemoRosenau,FinancialAnalyst,BankVontobel,Zurich(CH)
Uninterruptedgrowthtrendwithhighprofitability
Processesandinfrastructureonahighlevel
Geberitsharespopularamongstsustainability-consciousinvestors
TheGeberitGrouphasbeenexperiencingpleasinggrowthformanyyears,pri-
marilyasaresultoforganicgrowth,additionally,however,throughselective
acquisitions.Saleshaveincreasedbyanaverageof9.2%p.a.overthepastten
years(CAGR).Atthesametime,operativeprofitabilityhascontinuedtorise
further.Eachyear,thecompanygeneratesasubstantialamountoffreeliquid
funds.TheseareusedforfurtherinvestmentsinthefutureofGeberit.Never-
theless,thesefundsarealsoavailablefortherepaymentofdebts,fordividend
payments,therepurchaseofsharesorforacquisitions.Thankstothehealthy
financialsituation,Geberitisadependableemployeraswellasareliablepartner
forcustomers,suppliersandtheinterestedpublic.Theshareholdersparticipate
inthesuccessthroughapermanentincreaseinthevalueofthecompanyand
increaseddividendpayments.
AdecisivefactorinthesuccessofGeberitsofarisaclearstrategy,combined
withresoluteandconsistentimplementation.Thestrategywiththefourelements
setoutbelowformsthebasisforfuturesuccess:
1. Focus on plumbing technology
Geberitisfocusingonplumbingtechnology.Thecompanyhaslongandpro-
foundexpertiseinthisarea.Themainfocusofattentionisonthetransport
ofwaterinbuildings.Here,integratedplumbingtechnologyofsuperiorquality
isoffered.
2. Commitment to innovation
ForGeberit,theongoingoptimizationandextensionoftheproductrangeis
decisiveforfuturesuccess.Inadditiontomeetingcustomerrequirements,the
productrangemustsatisfythehighestenvironmentalstandards.At2.0%of
sales,ourinvestmentinresearchanddevelopmentisabovethestandardlevel
forourindustry.Around100patentshavebeenappliedforoverthepastfive
yearstoprotecttheinnovations.
Economy
Amarketleaderwithafocus
Net income 2004–2006
2006 2005 2004
EBIT 482.2 366.9 305.5
EBITDA 569.1 455.9 453.4
Netresult 355.0 262.5 194.4
Sales development 1996–2006 (inCHFmillion)
2,250
2,000
1,750
1,500
1,250
1,000
750
500
250
0
96 97 98 99 00 01 02 03 04 05 06
GeberitSustainabilityReport2007 13
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Integration of Mapress into the Geberit
Group brought to a successful conclusion
In2004,theMapressproductionplantinLan-
genfeld(DE),oneoftheworld’sleadingmanu-
facturersofpressfittingsystemsmadefrom
stainlesssteel,carbonsteelandcopper,was
successfullyintegratedintotheGeberitGroup.
Around500employeesworkforGeberit
Mapresscustomersinproduction,logistics
andadministration.Marketingandsalesare
fromasinglesource.Geberithasalsofully
completedtheintegrationofMapressonthe
productsidewiththedevelopmentofan
adapterfittingforusebetweentheMepla
multilayerandtheMapresspipes.
3. Selective geographic expansion
TheacceleratedpenetrationofmarketssuchasFrance,GreatBritain,theIberian
peninsula,EasternEuropeandtheNordiccountriesisanimportantfactorin
thelong-termsuccess.OutsideofEurope,thecompanyadoptsaveryselective
approach.InadditiontoourinvolvementinNorthAmerica,Geberitiscon-
centratingpredominantlyontheprojectbusinessintheregionsChina,Singapore,
SouthKorea,AustraliaandtheUnitedArabEmirates.Inthisrespect,thecom-
panyalwaysadheresstrictlytotheexistinghighstandardsintermsofquality
andprofitability.Whenbuildingupandexpandingthelocalorganizations,dealing
respectfullywithdifferingculturesisregardedasastandardofdecencyand,
additionally,asasuccessfactor.ThismakesGeberitaninternationallyrespected
partner.
4. Continuous optimization of business processes
Geberitiscontinuouslyoptimizingbusinessprocessesandinfrastructurewitha
long-termhorizon.Withjustafewexceptions,bothareashavereachedalevel
withwhichthegrowthplannedforthemediumtermcanbemanaged.Oneof
themostimportantstrategictasksisthepermanentoptimizationofthebusiness
processes.Ontheonehand,inGroup-wideprojectsinwhich,forexample,
thelogisticsstrategyisfurtherdevelopedortheEuropeandistributionactivities
reviewed.Ontheotherhand,itistheemployeeswhorecognizeopportunities
forimprovementtimeaftertime,thusmakingadecisivecontributiontotheposi-
tivedevelopment.
Improved reputation on the capital market as a result of efforts in the field
of sustainability
Theeffortsintermsofsustainablecorporatemanagementarebeingrewarded
bythecapitalmarket.Geberitiswellrepresentedinthe–comparativelystill
smallbutconstantlygrowing–segmentofsustainabilitystockindexesandsus-
tainabilityfunds.ThusitisthattheGeberitsharenowfeaturesintheDowJones
SustainabilityIndex(DJSISTOXX),theEthibelSustainabilityIndex(ESI)and
theFTSE4GoodIndex(EuropeandGlobal).Inaddition,renownedsustainability
fundsholdtheGeberittitlesintheirportfolios.Geberit’sobjectiveistocontinue
14 GeberitSustainabilityReport2007
toplayasignificantroleintheconstantlygrowinginvestmentsegments“Sus-
tainability”and“Water”.
Thesustainedpositivedevelopmentofthesharepricealsobearswitnesstoa
long-termandsuccessfulstrategyimplementation.Intheperiodbetweenthe
InitialPublicOfferinginJune1999andtheendof2006,theGeberitsharerose
byanaverageof26.0%p.a.
An overview of quantitative economic aspects
Setoutbelowisanoverviewofsomefundamentaleconomickeyfigures.Inpart,
thesewillbediscussedingreaterdepthintheensuingchapters.
(inCHFmillion) 2006 2005 2004
Direct economic value added Sales 2,183.5 1,922.9 1,906.8
Operatingresult(EBIT) 482.2 366.9 305.5
Economic values passed on Operatingexpenses,netexcludingpersonnelexpenses 924.2 854.8 906.8
Personnelexpenses 442.3 418.5 441.1
Wagesandsalaries 343.5 322.5 344.4
Pensioncontributions 17.2 19.6 11.5
Othersocialbenefits 62.0 58.9 67.6 Otherpersonnelexpenses 19.6 17.5 17.6
Paymentstoprovidersofcapital 116.2 107.5 92.8
Dividends 101.5 90.3 69.6
Interest 14.7 17.2 23.2
Taxes(incometaxespaid) 123.1 80.6 62.1Socialcommitments(contributionsanddonations) 1.9 5.0 1.9
Retained economic values Investmentsinproperty,plantandequipment 81.3 79.5 87.8Divestmentsofproperty,plantandequipment 2.6 6.3 9.2
Repurchaseofshares 179.0 0.0 0.0
Geberit wins the “Best of European Business Award” 2006
Itisnotpossibletoapplytobeconsideredfortheprize,whichisawardedbytheConsultingCompany
RolandBergerincooperationwithmediacompaniesintenEuropeancountries.Morethan1,000Swiss
companiesoperatingEurope-widewereanalyzedandassessedonthebasisofstrictcriteria.Geberit
achievedtoppositionasthestrongestgrowingSwisscompany,aboveallasaresultofthehighand
profitablegrowthbutalsothankstoitshighinnovativestrength.In2007,Geberitverynarrowlymissed
outonanotherdistinction:the“CorporateSocialResponsibility(CSR)Award”,likewiseawardedby
RolandBerger.Asaclosesecond,Geberitwaspraisedaboveallforitsmeasuresinthefieldofenviron-
mentalprotectionaswellasforitsenvironmentallyfriendlyproducts.
Economy
Development of the share price since the Initial Public Offering (inCHF)
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0 00 01 02 03 04 05 06
Geberitshare
SwissPerformanceIndex(SPI)
(Source:ThomsonFinancialDatastream)
GeberitSustainabilityReport2007 15
16 GeberitNachhaltigkeitsbericht2007
WolfgangSchulztookoverthe40-year-oldplumbinginstallationbusinessfromhisfather
eightyearsago.Withastaffof20,heworksonmanymedium-sizedandlargerobjects
suchasretirementandnursinghomes.Thesecustomersarequalityorientedandwantnot
onlyconsistentandgoodqualityproductsbutalsoexpectmaximumpossiblehygiene.
WolfgangSchulzusesexclusivelyGeberitcomponents.Thereliabilityoftheproducts,the
quick,uncomplicatedinstallationandtheflexibilityofdesignoftheGeberitsystemsare
appreciatedequallyasmuchbyhisemployeesasbyhiscustomers.
“WepassoursatisfactionwithGeberitontotheenduser.”WolfgangSchulz,ManagingDirectorSchulzsanitäreAnlagen,Haigerloch(DE)
Satisfied customers thanks to new standards in plumbing technology
Geberit products are the key to design-oriented and hygienically optimized plumbing areas
Customer training courses with around 30,000 participants in 2006
Geberit as a partner for sustainable building
Geberit is not simply products. The concept Know-How Installed characterizes
the company in a fitting manner. As a knowledge-oriented company, Geberit
creates a constantly growing fund of know-how and passes this on to its cus-
tomers. Permanently optimized quality standards and reliability, as well as
quick and simple installation, are success factors for high customer satisfaction.
New marketing organization strengthens service for customers
In recent years, Geberit has taken steps to act in an even more market- and
customer-oriented manner. The strengthening of marketing at Group level took
account of the increasing internationalization of business and of the need to
exploit synergies. Cooperation between marketing, sales and product manage-
ment was further optimized with the aim of satisfying customer requirements
to an even greater extent with innovative new products.
In terms of market servicing, Geberit is placing its faith resolutely in the three-
stage distribution channel. Geberit products are distributed exclusively via the
wholesale trade. The trade subsequently sells the products to plumbers and
also maintains, for example, displays, in which the Geberit products are shown
to the end user. The partnership approach is demonstrated through joint
marketing campaigns with the wholesale trade. At the same time, Geberit
provides plumbers and planners with intensive support through training
and advising which in turn leads to an increased demand for Geberit products
at the wholesalers.
Architects and building contractors are an increasingly important target group
for the exchange of information and training, as they recognize and set trends in
the building sector. Geberit wishes to take up these trends as early as possible
and to implement them in concrete products. End users are becoming increas-
ingly important for Geberit to the extent that their need for design-oriented, com-
Customer
The business model
Geberit Organization
Wholesaler
Plumber
End user
Planner/Architect/Contractor
Push sales
Pull demand
Training/Support
Geberit Sustainability Report 2007 17
·
·
·
fortableandhygienicallyoptimizedplumbingareasisconstantlyrising.Conse-
quently,thecompany’sadvertisingexplainshowGeberitcancontributetowards
thistypeofsolution.
Setting new standards in plumbing technology with Know-How Installed
Accordingtoacustomersurvey,thetermsquality,functionality,reliabilityand
partnershipdescribethecoreofthecompany.Theproductrange,theorganization
andtherelationswithcustomersandbusinesspartnersarebestsummarized
usingtheseterms.However,thisisnotsufficientforensuringfuturesuccess.
Thefundamentalvalues“integration”,“innovation”and“knowledge”distinguish
Geberitfromtheothermarketplayers.Thesevaluescharacterizethethinking
andactionsofGeberitemployees.Theyguaranteethatthepositionasmarket
leadercanbemaintainedandthatnewstandardscanbesetinplumbing
technologytimeaftertime.Inthisrespect,theextensivespecialistknowledge
shouldbeusedresolutelyforthecreationofinnovations.Thiswillenablethe
useofsynergiesandtheoptimizationoftheefficiencyofentiresystems.Based
onthis,GeberithasdevelopedamarketingconceptinKnow-HowInstalled
withwhichthepositionofmarketleaderistobeunderlined.
Top quality thanks to professional management processes
Qualitycreatesenthusiasmandtrust.Itcanonlydevelopfromqualityawareness
andisstandardatGeberit.Qualityistheresultofcontrolledprocesses
throughoutthecompany,andissupportedbythecentralqualitymanagement
department.
Geberitstrivestowardsthezero-errorprinciple.Onthebasisofsystematic
analyses,measuresandproceduresaredevelopedwhichareintendedtoexclude
defectsonapreventativebasis.Thecompanyorientsitselftowardscustomer
requirements,statutoryregulationsandstandards.Theobjectiveistoexceed
thesetimeaftertime.Allproductspassthroughadefinedprocess.Thusfor
example,healthandsafetyrequirementsofallproductsaretestedandensured,
fromthedevelopmentstagethroughtocertificationandmanufacture,andright
throughtouse.
Over 7,200 workshop participants
TheinformationcentersinPfullendorf(DE)
andLangenfeld(DE)illustratetheintensityof
thetrainingprograms.In2006,atotalof
545workshopswereorganizedatthesetwo
locations,duringwhich4,758plumbers,
357plannersandarchitects,265wholesale
employees,1,473representativesofvoca-
tionalschoolsandtechnologyuniversitiesas
wellas379internationalvisitorsweretrained.
The Know-How Installed marketing concept
18 GeberitSustainabilityReport2007
Inno
vatio
nQuality
FunctionalityReliabilityPartnership
Know-How
Knowled
ge
Integration
Installed
Themanagementofqualityensuresefficienthandlingofcomplaintswithintegrated
erroranalysis,theinitiationofsustainedcorrectivemeasuresandthedevelop-
mentofconceptsforcustomerservicingincooperationwiththesalesorganiza-
tions,plantsanddevelopment.Geberithasachievedahighstandardinthe
processingofcomplaints,andreactsdirectlyandinasolution-orientedmanner
ineachindividualcase.Thisisdocumentedbyfundamentalindicators:Group-
wide,therehasneverbeenanycourtjudgmentagainstGeberitinvolvingcontra-
ventionsofregulationsonthehealthandsafetyofproductsandservices,
orproductandserviceinformation.Likewise,nosignificantfineshaveeverbeen
imposedinconnectionwithGeberitproductsandservicesortheiruse.Inthe
marketingsectortoo,therearenoknownviolationsofcustomerdataprotection.
Training as a central success factor in customer relations
Nevertheless,goodproductquality,aswellasspeed,simplicityandsafetyin
installationanduse,arenotsufficientbythemselves.Activeservicingofthe
marketisextremelyimportant.Around500technicaladvisersworkinginthefield
areincontactonadailybasiswithplumbers,plannersandarchitects,inpar-
ticular.In2006,around30,000customerswereprovidedwitheducationand
furthertraininginGeberitsystemsandsoftwaretoolsinthe25informationcenters
inEuropeandoverseas.Thecompanycooperatescloselywithitscustomers
onsubjectssuchashygiene,hydraulics,staticsaswellasfireprotectionand
acousticinsulation,andoffersintensivetrainingmeasures.Inadditiontomany
customereventsorganizedbythelocalsalescompanies,numerousexhibitions
atwhichGeberitispresentserveasaplatformforkeepingupcustomercon-
tactsandcommunicatingtheinnovativestrength.Targetedtrainingmeasuresare
alsoofferedforspecialistmastercraftsman’sschoolsanduniversities,residential
buildingcompanies,contractorsandpropertymanagementcompanies,pro-
ductionengineersinlargeplantsandemployeesfrombuildingandhealthauthor-
ities.Inordertoincreasetransparency,GeberithasbeenofferingspecialLife
CycleAssessmentleafletsforvariousproductsforanumberofyears.Theseillus-
tratethemostimportantenvironmentalaspects.
Customer
Geberit on tour
InSwitzerland,Geberitlaunchedmorethan
300newproductsontothemarketin2006.
Geberitworkstogetherwithwholesalersin
ordertokeepplumbersuptodateasregards
thetopthemesandnewdevelopmentsin
theplumbingfield.Truetothemotto“Nocom-
promise”,atotalof33eventswereheld
throughoutSwitzerlandin2006.Campaigns
concerningpipingandpreWallsystems
informedaround1,900plumbersregarding
currentsolutionswhichenableadherence
tonewfireprotectionandacousticinsulation
standardsaswellasensuringhighquality
andfunctionality.
GeberitSustainabilityReport2007 19
Satisfied customers as the basis for success
ThequalityofGeberitproductsandservicesisthebasisforthesuccessof
plumbersinthemarketplace.Theplumbercanbecertainthat,throughthein-
stallationofGeberitproducts,heissellinghiscustomershigh-qualityandreliable
solutions.Asanadditionalservice,Geberitofferssoftwareasasimple,target-
orientedandoperator-friendlyplatformforplanningandthepreparationofquo-
tations.Standard-conformcalculationscanbepreparedintime-savingmanner
andimplementedinquotationsoptimallytailoredtocustomerrequirements.
Thiscontributiontotheirsuccessisgreatlyappreciatedbythecustomers.Ensur-
ingcustomersatisfactionalsoincludesthetakingbackofoldproducts.Here
too,Geberitgoesbeyondthestatutoryminimumrequirementsandtakesback
electricalappliances,suchasWCcontrolunits,onavoluntarybasis.
AperceptionstudycarriedoutinsevenEuropeancountrieshasconfirmed
thatGeberitisastrong,highlyrespectedbrandinthepremiumsegment.Never-
theless,itwasalsoclearthatthecompanyhasareputationofbeingtoocon-
servative,andofnotcommunicatingandpositioningitscapabilitiesandspecialist
knowledgetoasufficientextentinthemarket.ForGeberit,thisservedasmoti-
vationtoinvestigatecommunicationwithcustomersandtoadaptitaccordingly.
Thecustomershouldbekeptbetterinformedregardingthelatestdevelopments.
TheaimistoshowwhereandhowGeberitisshapingthetrendsoftomorrow.
Shaping the future together with our partners
Geberitwishestosettrendsinplumbingtechnologytogetherwithitscustomers.
Anincreasinglyimportanttopicissustainablebuilding.Geberitmaintainsa
dialogwithleadingarchitects,forexampleconcerningthequestionofhowwater
saving,flexibleandmodularbuilding,andoptimumacousticinsulationcan
supportasustainablemannerofbuildingand,atthesametime,enableelegant
bathroomswithmaximumcomfort.Asmarketleader,Geberitisalsowell
positionedintermsoftouch-freetechnologiestorespondtotheincreasingsen-
sitizationregardinghygieneaspectswithconcretesolutions.Togetherwith
itspartners,newtrendsshouldbesetinpublicandsemi-publicWCfacilitiesas
wellasinprivateresidentialbuildings.
In Singapore saving water is a State
objective
Singaporeobtains60%ofitswaterfromneigh-
boringMalaysiaandwishestoreducethis
dependence.Consequently,thegovernment
haslaiddownwater-savingobjectives(are-
ductionindailyconsumptionfrom162liters
perpersonin2004to155litersin2012)and
wishestomakedualflushcompulsoryforall
WCapplications.Geberitofferstheproducts
requiredforthis:e.g.inthe“Pinnacle”project,
thewinningprojectinaStateinvitationtoten-
derforresidentialbuilding,orinthehigh-rise
buildingproject“TheSail”,privatelyowned
apartmentsforpeoplewithhigherexpectations.
20 GeberitSustainabilityReport2007
Sustainable building at the highest level
GeberitsupportsthebuildingofthenewMonte
RosaHutinthecenterofthehighalpineSwiss
mountains.Thebuilding,planned2,795meters
abovesealevelbytheSwissFederalInstitute
ofTechnologyZurich(ETH)togetherwiththe
SwissAlpineClubSAC,combinesresearch
andtop-leveltechnologywithdesignandsus-
tainability.Meltwaterfromthesurrounding
areaisusedforthewatersupply.Theplumbing
facilities,suchastoilets,whichusepurified
wastewater,arerealizedwithGeberitknow-
howandproducts.
Photomontage:ETHZurich(CH)
Customer
MatteoThun,aninternationallyknownandre-nownedarchitectfromMilan(IT),issettingnewtrendsinsustainablebuilding.Healsousestheterm“Aestheticsoftheinvisible”incon-nectionwithGeberit.
What does sustainable building
mean to you?
Thetermisbasedonarespectful
understandingofthenatureof
nature.Forme,thismeansadapted
tothelandscape,incorporated
intothecountryside,withoutdisturb-
ingthenaturaltopography.In
organicarchitecture,buildingloca-
tion,structureandfacilitiesbecome
aunitandareinharmonywiththe
surroundingarea.
How do you implement your
sustainability philosophy?
Iendeavortoanswervariousques-
tionsformyself:Whatistheratioof
heatingenergysavedtoproduction
energyused?Whatisthesituation
asregardsthedisposalofmaterials,
howscarcearetherawmaterials?
Anexampleofthisiswoodinhigh-
riseconstruction.SincetheSecond
WorldWar,only60to70percent
usehasbeenmadeofrenewable
woodfromEuropeanforests.Ifone
weretojustunderdoubletoday’s
marketshareofwood-frameconstruc-
tion,itwouldbepossibletouse
theamountofwoodthatwould
resultfromecologicallysensibleuse
offorests.
What is behind the term
“Aesthetics of the invisible”?
Iliketoexplainthisusingtheexample
ofacompactmoduleforbathroom
andtoiletthathasbeendeveloped
inclosecooperationwithGeberit.
Thebasisforthedesignofthe“Aes-
theticsoftheinvisible”isinterface
optimization.Thismeansthatall
technicalelementsaresituated
behindthesurfaces.Theresultis
flexibilityandthepossibilityofquick
revision.
Thankstotheintegrationofallcom-
ponentsintoamoduleandbehind
smoothsurfaces,fewerdepositsof
dustanddirtresult.Theresultis
cleanlinessandhygiene.Conse-
quently,thecompactmoduleisout-
standinglywellsuitedforpublicand
semi-publicareasandtoilets,for
exampleinhotelsorairports.The
minimallanguageofform,freefrom
disturbingelements,generatesa
positiveassociationwiththeproduct
onthepartoftheuser,andalso
communicatesonapsychological
levelthatthereisnoriskofillnessor
dirt.Putbriefly:aperfectshape
whichconformstothefunctionand
identityoftheproduct.
GeberitSustainabilityReport2007 21
22 GeberitNachhaltigkeitsbericht2007
ChristofBlatterhasbeenworkingforGeberitfornineyears.Immediatelyfollowinghisstudies,
hejoinedthecompanyasJuniorProjectManagerforthedevelopmentofEasternmar-
kets,spenttwoyearsinDubaiandhasnowbeeninMoscowforfouryears.There,hehas
successfullybuiltupthenationalrepresentationorganization.Forhim,itisimportantto
passonthesupport,theconfidenceandthefreedomthathehasreceivedfromheadquarters
tohisteam.HealsowantstoenablehisRussiancolleaguestobenefitfromthesamegood
careeropportunitiesthathehasenjoyed.HewillbereturningtoSwitzerlandshortlyandis
pleasedthataRussianemployeewillbetakingoverthecompanymanagementinMoscow.
“Iwassoongiventhenecessaryfreedom,yetIwasneverleftalone.”ChristofBlatter,HeadRepresentativeOfficeGeberitRussia,Moscow(RU)
Thinking,shaping,changing:workingforGeberit
Corporatevaluesandguidelinesmadetangible
Educationandfurthertrainingatahighlevel
Goodrelationstotheemployeerepresentatives
Withinnovativesolutionsinplumbingtechnology,Geberitwishestoimprove
people’squalityoflifeonasustainablebasis.Everyday,allemployeesworldwide
makeavaluablecontributiontotherealizationofthisvision.Highethicalstan-
dards,teamspirit,enthusiasmforthecompany,modestyandthewillingnessto
adapttoarapidlychangingenvironmentcharacterizethecorporateculture
andthuscreatethesuccess.
Toensurethissuccessinthelongterm,Geberitorientsitselftowardscentral
guidelinesandfundamentalvalues.SinceDecember2006,thesehavebeen
summarizedinthenew“GeberitCompass”andserveasaframeworkforaction
androadmapintothefutureforallemployees.Anewmanagementteamat
thetopoftheGroupandtheincreasinginternationalizationhavenecessitated
thefurtherdevelopmentofprovenguidelines.Forthisreason,thenewGeberit
Compasshasreplacedtheprevious“GeberitIdentity”.
International cooperation encourages team spirit
TheGeberitCompassstates:“Therightemployeesareourmostimportant
asset.”Asoftheendof2006,Geberitemployedatotalof5,269peoplefrom63
nationsworldwide.Inthisrespect,thereisanoticeableincreaseintheimpor-
tanceofcooperationininternationalnetworksandorganization-spanningteams.
TheGeberitCodeofConductwasdrawnupinordertotakeaccountofthis
development.Itappliesforallemployeesworldwideand–alongsidetheGeberit
Compass–formsthebasisfordailyworkandrequiresstrictadherencetolaws
andethicalstandards.Itoffersprotectionagainstworkplacebullying,sexualhar-
assment,andchildorforcedlabor,aswellasagainstdiscrimination,forexample
basedonnationality,ethnicorigin,religion,genderorsexualorientation.Unfair
businesspracticessuchascorruptionorrestrictionsonfaircompetitionare
rejected.UponintroductionoftheCodeofConduct,allemployeeswillbepro-
videdwithextensiveinformationconcerningtherightsandobligationscontained
therein.EmployeescommittoadheretothisCodeofConductand,atthe
sametime,acquiretherighttoreportviolationsinconfidenceandwithprotection
againstreprisals.
Employees
GeberitSustainabilityReport2007 23
·
·
·
Personal development work in Michigan
City
TheproductionplantinMichiganCity(US)
requiredthesupportofanexperiencedMan-
ageratshortnotice.HartmutMüller,who
hadsuccessfullybuiltuptheLichtenstein(DE)
plantasManagingDirector,spontaneously
offeredhisservices.Duringhisthree-month
assignmentintheUSA,hesucceededintrans-
ferringhisknow-howtothebenefitofall
involved.Theworkininterculturalteamswas
anenrichingexperienceforbothsides.
Education and further training as a companion
Qualifiedandcommittedemployeesareindispensableforthefuturesuccessof
Geberit.Forthisreason,thecompanyattachesparticularimportancetowell-
foundededucationandfurthertrainingofallemployeesandtoequalityofoppor-
tunities.Anexampleofthisistheemploymentof80severelyhandicapped
personswithintheGeberitGroup.
AtGeberit,theprofessionalcareerofayoungpersoncanbeginwithcommercial,
industrialortechnicaltraining.Whetherplasticstechnicianorindustrialclerk:
theaimistocommunicateallskillsrequiredforexpert,independentandautono-
mousexerciseofthechosenprofession.Asoftheendof2006Geberitemployed
177apprentices.
Thecompanyanditsproductsareexplainedtonewemployeesinvariousintro-
ductionprogramswhentheytakeuptheirpositions.Theserangefromindividually
designedintroductorymeetingsinvariousdepartmentsthroughtotheweek-
longbasiccoursewhichcommunicatespracticallyrelatedGeberitknowledgein
smallgroups.
Ineverydayworkinglife,thepersonalandprofessionaldevelopmentofeach
individualemployeeisencouragedinavarietyofways.Thiscoversallareasof
work,functionsandagegroups.Opportunitiesfordevelopmentareidentified
withintheframeworkofhalf-yearlyorannualappraisalinterviewsandobjective-
agreementmeetings.Subsequently,objectivesandimplementationmeasures
aredefinedtogetherwiththesupervisor.
In2006,employeesspentanaverageof13hoursonfurthertraining.Aspartof
afurthertrainingagreement,Geberitalsosupportsemployeesstartingsupple-
mentarytrainingorpost-graduatestudies.Theaimisthecreationofacommon
basisforlong-termcooperation.Managershavetheopportunityoftakingpart
inspeciallytailoredmanagementtrainingcourses.
Employees 2006 by countries
Germany(38%)
Switzerland(19%)
China(11%)
Austria(8%)
USA(5%)
UnitedKingdom(4%)
Slovenia(4%)
Italy(2%)
Denmark(1%)
Others(8%)
24 GeberitSustainabilityReport2007
Talentednext-generationmanagersareencouragedandcanpassthrougha
specificManagementDevelopmentProgramaspreparationforpositionsof
responsibilityinmiddleandseniormanagement.
Motivated employees thanks to good working conditions
Regulareducationandfurthertrainingcontributetowardshealthandsafetyat
theplaceofwork.Theverylowabsenteeismrateof2.6%throughouttheGroup
demonstratesthisinimpressivemanner.Intheperiodunderreview,just0.1%
wasaccountedforbyaccidentsatwork;theremaining2.5%wasabsenteeism
duetoillness.Eventhispercentageisverylowatmanylocationsthanksto
targetedhealthprecautions(dietaryadvising,anti-smokingtraining,sportspro-
grams,etc.).
Forallemployees,safetyattheplaceofworkincludesbeingsecureinthe
knowledgethattheirremunerationisfairandinlinewithmarketlevels.Localreg-
ulationsonminimumwagesarerespected.In2006,expenditureonwages
andsocialbenefitstotaledCHF442.3million.Shareparticipationprogramsat
attractiveconditionsenableemployeestoparticipateintheeconomicsuccess
ofthecompany.
Geberittakesemployeeinterestsseriously.Determiningtheirsatisfactionandtheir
requirementswastheaimoftheGroup-wideemployeesurveycarriedoutin
2004in23countries.Over3,300employeestookpart.Satisfactionwas70%.At
79%,supportforthecorporateobjectives–ascertainedintargetedreplieson
identification,commitmentandbindingtothecompany–waswellabovecom-
parativevaluesforgloballyoperatingcompanies.Variousimprovementmeasures
werederivedfromtheresultsofthesurveyintheindividualcountriesandim-
plemented.ThegoodworkingconditionsatGeberitincludeflexibleworkinghour
models.Thesemakeadecisivecontributiontoemployeesatisfaction,asthey
supportthebalancebetweenprivateandworkinglife.
Theshareoffemaleemployeesisaround30%,inuppermanagement,thisfigure
isjustunder5%.
Slovenian subsidiary celebrates ten years
as a member of Geberit
TheplantinRuše(SI)hasbeenpartofthe
GeberitGroupsince1997.Thecompanyis
amongstthe20largestintheregion.The
numberofemployeeshasdoubledoverthe
pasttenyears.Theplanthasdeveloped
intoafullyintegratedGeberitGrouplocation.
Theintegrationoftheemployeesranpositively
andidentificationwithGeberitishigh.
Employees
Employees 2006 by business process
Production(55.7%)
MarketingandSales(26.3%)
Administration(11.2%)
ResearchandDevelopment(3.4%)
Apprentices(3.4%)
Sales per employee(inthousandsofCHF)
Numberofemployees
Salesperemployee
04 05 06
430
410
390
370
350
330
310
290
5,600
5,500
5,400
5,300
5,200
5,100
5,000
4,900
GeberitSustainabilityReport2007 25
Adopting an active approach to life after
retirement
InSwitzerland,Geberitoffersallemployeesas
wellastheirpartnersprofessionallyaccom-
paniedworkshopsinpreparationforretirement.
Themainemphasisofthetwo-and-a-half-
dayworkshopsisonchallengingparticipants
toorganizetheirnewlifeinanactiveand
individualmanner.Newideasandpossibilities
areusedtostimulateintellectualvitalityin
theinterestsofdeterminingone’sownlifestyle
awayfromdutiesandtheemployment
market.Geberitassumesallcostsforthis
popularworkshops.
Information and constant dialog
Geberit’seconomicenvironmentisbecomingincreasinglycomplexandischanging
rapidly.Thisdevelopmentisalsoreflectedinthefluctuationquota–despite
highlevelsofemployeesatisfaction,thissharewas11.8%attheendoftheperiod
underreview(includingnaturalturnover,e.g.retirement).
Thismakesforward-thinkingandactiveformulationofchangeprocessesallthe
moreimportantforthelong-termsuccessofthecompany.Open,honestand
clearcommunicationisthebasisforthis.Geberitmakesuseofvariousinternal
andexternalmeansofcommunicationandmaintainsaconstantdialogwith
theemployeesandthelocalemployeerepresentatives.Inaddition,regularinfor-
mationisprovidedoncurrentthemes,trendsandactivitiesthroughelectronic
newsletters,employeemagazines,brochuresaswellasinformationevents.
Therearenoformalregulationsastowhenandhowfrequentlytheemployees
aretobeinformed.Incasesofmajorstructuralchanges,Geberitmakesevery
efforttoinvolvetheemployeesatanearlystage.Thetake-overandsuccessful
integrationoftheGermanMapressGroupin2004providesanexemplaryillus-
trationofthis.Atthetime,around870additionalemployeesjoinedtheapproxi-
mately4,400existingGeberitstaff:amajorchallengeforallthoseinvolvedand
onethatwasmasteredsuccessfully.
WhenpartingwiththenowindependentItaliancompanyDeriplastin2005,Geberit
strivedtoachieveapartnership-likeandsociallyacceptablesolution.Success-
fully:Dismissalswereavoided.Bothcompanies,aswellastheiremployees,are
nowbenefitingfromtheclearfocusontherespectivemarketsegment.
“Sustainability means not
just being applicable once but
on a continuous basis.”
“Working with consideration
for others.”
“Leaving a good and
lasting impression.”
“Training young people
for the future.”
StatementsbyapprenticesatGeberitPottenbrunn(AT)onthekeywordsustainability
26 GeberitSustainabilityReport2007
Europe Forum as a dialogue platform for
employee representatives
TheGeberitEuropeForum,heldtwiceayear,
offersrepresentativesofthecompanies
presentanopportunityforexchanginginforma-
tion.In2006,forexample,concerninga
surveyonthesubjectofpersonnelandsocial
reporting.Thiswasaboutassessingand
improvingvariousperformancesoftheindivid-
ualcompanies,includingthefieldofemployee
assessment,employeerepresentationor
healthmanagement.
Employees
HeinzAmberger,apprenticessupervisoratGeberitPottenbrunn(AT),hasacquiredexperi-encefromteachingover40apprentices.
Numerousdistinctionsdocumentthecommit-mentofGeberittotraining.In2006,forexam-ple,itwasawardedtheAnton-BenyaPrizeforoutstandingperformancesintheinstructionofapprentices.
You have been involved in
teaching apprentices for eleven
years. What aspect of your work
particularly appeals to you?
Workingwithyoungpeopleisgreat
funanditfillsmewithpridetosee
howournextgenerationcontinues
todevelopfollowingtheperiodof
training–bothprofessionallyand
personally.
What is particularly important to
you in training?
Ourapprenticesarenotunskilled
laborers.Traininghasthehighest
status.Ourtrainingisveryinten-
siveandcompany-related–with
manyinternalandexternaltraining
measuresandworkshops.And
wealsoprovidetheoreticalteaching
inourowntrainingfacilityinaddition
tothevocationalschool.Another
aspectthatisparticularlyimportant
tome,isthatweencourageyoung
peopleinsuchamannerthat
theydevelopintomatureandself-
confidentpersonalities.
How can you support the
development of their personality?
Thebestwayofgettingthrough
toyoungpeopleisviaspecialactivi-
ties,suchasour3-dayoutdoor
workshop.Thisalwayshasadiffer-
enttheme,suchasprevention
ofaddiction,theabilitytoworkina
team,fearandovercomingfear.
Theyoungpeoplecanchoosethe
themethemselves.Followingthe
workshop,theapprenticesreportto
thecompanymanagementon
theirexperiencesintheformofa
presentation.
You offer training in professions
such as electrician or plastics
technician. Can women also be-
come apprentices?
25%ofourapprenticesinPotten-
brunnarefemale;inthisrespect,it
shouldnotbeforgottenthatweonly
offertrainingintechnicalprofes-
sions.Forourselectionprocedure,
thecolorofaperson’sskin,their
nationalityorgenderareofnorele-
vance.Importantforusisthatwe
areabletorecruitcapableyoung
peoplewhomwewishtoprovide
withgoodtrainingandsubsequently
makebestuseofinourcompany.
Nevertheless,wesupportmeasures
suchastheGirls’Day,anannual
Austrianeventinwhichrenowned
companiesofferyoungwomenan
insightintotechnicalmatters.
GeberitSustainabilityReport2007 27
28 GeberitNachhaltigkeitsbericht2007
Togetherwithexternalpartnersinuniversitiesandbusiness,theteamheadedby
AbdullahÖngöreniscarryingoutbasicresearchinthefieldsoffluidtechnology,structural
mechanics,acousticsandmeasuringtechnology.Hisdepartmentprovidesthelatest
technologiesandmethodsinordertoshortendevelopmenttimesandoptimizetheprod-
ucts.Ecologicalnecessityandthetrendtowardsreducedwaterconsumptionaretaken
seriously.ForAbdullahÖngören,makingproductsmoreefficientalwaysmeansdesigning
themforlowerconsumption.Withnew,virtualdevelopmentmethods,histeamconstantly
keepsacoupleofstepsaheadofthecompetitionasfarasthisthemeisconcerned.
“Smaller,moreefficientandquieterproductsaretheobjective.”AbdullahÖngören,HeadBasicSanitaryTechnology,GeberitJona(CH)
Innovation factory for sustainable products
Structured process and the latest methods as a basis
Saving water remains a central theme
New products fully focused on hygiene
Innovative ideas, committed employees, pronounced core competences and
well thought-out work processes make Geberit products what they are: highly
developed, reliable, lasting and optimally coordinated sanitary and piping sys-
tems. Environmental aspects are taken into consideration as early as the initial
phase of the development process. Here, Geberit sets standards for sparing use
of the resource water, with simultaneous highest comfort and maximum hygiene.
Market-oriented further development thanks to the innovation process
development
Being European market leader in plumbing technology is a distinction, achievement
and obligation at the same time. To enable Geberit to offer its customers highly
developed quality products year after year, work is continuously being carried out
on new developments and on the optimization of existing systems. This is
why the company has been practicing applied research and development for de-
cades. Many impulses come direct from the customer. The marketing and sales
experts as well as product managers monitor and analyze developments in
the markets. They identify the latest trends, evaluate them and prepare project
proposals.
Geberit operates its own “innovation factory”. Following on from the preparation
of the idea, the project managers compile interdisciplinary teams. As a result,
product managers, engineers, application engineers and technical designers, as
well as experts from procurement, marketing, sales, and environmental and
quality management, work together towards the successful realization of a proj-
ect. All new developments are prepared and optimized on the basis of the
structured “Innovation Process Development” (IPD). This ensures that optimum
use is made of the creative potential of the ideas and that the development
activities are tailored to the requirements of the market. The IPD consists of six
phases: preparation of the idea, concept, development, implementation, opti-
mization and marketing. The know-how of numerous departments and laborato-
ries as well as – if required – of external partners is incorporated.
Product development
Innovation Process Development (IPD)
Preparation of ideas
Concept
Development
Implementation
Optimization
Marketing
Geberit Sustainability Report 2007 29
·
·
·
50 years in three months
IntheGeberitplumbinglaboratory,aboveall
newlydevelopedproductsaretestedright
downtothefinaldetail.Forthistask,Geberit
hasdevelopedtestsoftware,temperature
cycleandlong-timetestingdevicesaswellas
devicesforcharacterizingsusceptibilityto
contaminationanddeposits.Stabilityunder
load,longevityandsealintegrityareatthe
forefrontofthesetests.Thecisternsaresub-
jectedtoalong-timetestinvolvingatleast
200,000flushesinthreemonths.Thiscorre-
spondstoaproductlifeofupto50years.
Eco-Design as the key to environmentally friendly products
Asarule,environmentalimpactdoesnotresultbychance.Inthedevelopment
process,earlyplanningcanensurethatasenvironmentallyfriendlymaterialsas
possiblearechosen,risksminimizedandhighefficiencyofresourcesachieved.In
concreteterms,so-calledEco-Designworkshopsareheldforallimportantproj-
ectsundertheleadmanagementoftheenvironmentandsustainabilitydepartment.
Theseworkshopsincludeasystematicproductanalysisduringalllifephases,
theinvolvementofstatutoryrequirementsaswellastheanalysisofcompetitor
products.Importantinthisrespectisthepresenceoftheentireprojectteaminclud-
ingrepresentativesofalldisciplines.Theknowledgegainedisincludedinthe
performancespecificationfortheproduct.TheaimofEco-Designistomakeeach
newproductbetterthanitspredecessorintermsofenvironmentalaspects.
The latest development methods as a basis
Geberitproductscanonlybeleadersifweusethelatestresearchmethodsas
wellasthelatestdevelopmentandtestingprocedures.Forexample,weuse:
·computer-assistedsimulationtechnologyinordertobetterunderstandtheflow
behaviorandthustooptimizehydraulics
·anefficientandseries-authenticprototypeconstructionthankstomanufac-
turingprocessessuchas3-Dprinting
·anoptimallyequippedplumbinglaboratorywithcomputer-assistedlong-time
testsofplumbingsystems,soastoensurethetraditionallyhighstrain-bearing
capacityandservicelifeofGeberitproducts
·amodernmaterialslaboratoryinordertotestchemicalandtechnicalattributes,
andtodeveloptailor-madespecialrecipesifrequired
Facilitiessuchastheindustry’sleadingbuildingtechnologyandacousticslabora-
toryensurethattheproductsarestructurallyoptimized,quietandfire-resistant,
andthussafe.Inthelaboratory,itispossible,amongstotherthings,tosimulate
thetransmissionofsoundinamulti-storyresidentialbuilding.Asaresult,itis
possibletotestandimprovenotonlyindividualcomponentsbutalsoentireinstal-
lationandpipingsystemsintermsoftheirnoiseconduct.Inthisway,wecomply
withtheconstantlyrisingneedforpeaceandquietinresidentialpremises.
30 GeberitSustainabilityReport2007
Continuing the history of success in water saving
TheenvironmentalprinciplescontainedintheGeberitCodeofConductrequire
caringhandlingofwater,energyandotherresources,whichgoesbeyondthe
statutoryrequirements.ThetraditionalstrengthofGeberitproductsintermsof
watersavingshowsbyfarthegreatestleverageeffecthere.Thustherehasbeen
amassivereductionintheamountofwaterconsumedperflush–previously
over14liters.TheGeberitflush-stopmakesitpossibletoregulatetheflushing
volume.Withthedual-flushtechniquewhichhasbeenonthemarketsince
1996,flushingcanbewithalarge(6liters)orasmallquantity(3liters).1-liter
urinalswithelectronicallytriggeredflushingandwater-lessurinalswithodor
traparenewdevelopmentswithpositiveeffectsonwaterconsumptioninevery
respect.
Thehighsignificanceofthesubjectofwatersavingisalsoshownintheproduct
lifecycleassessmentofaDuofixWCelement.Dominantatover90%istheuse
phase,i.e.theconsumptionofwaterthroughflushingoftheWC.Thecalculation
tookaccountofboththeprocessingandthetransportofthewateraswellas
ofdisposalinasewageplant.Consumptionofwaterisquitesimplyalsoconsump-
tionofenergy.ThisiswhyGeberitdevelopmentengineersattachparticular
importancetooptimumwaterconsumptioninflushingsystemsandfaucets.Prod-
uctlifecycleassessmentshavealongtraditionatGeberit.Theyalsoprovide
valuableinformationintermsofimprovementmeasuresforotherproductsand
areanimportantbasisfortheEco-Design.
New products fully adapted to hygiene
Inadditiontowatersavingsofupto30%,electroniccontrolunitsforurinalsen-
abletheconsistentimprovementofhygieneinplumbingareaswhilstatthesame
timeincreasingcomfort.Automaticflushactuationandtouch-freewashbasin
faucetsinpublicWCfacilitiesusedbycountlesspeopleeveryday,areincreas-
inglyindemandandcorrespondinglypopular.Giventhewetenvironment,
electronicsinplumbingtechnologyrequireagreatdealoftechnicalskill.Here,
Geberitdistinguishesitselfthroughitsparticularlyextensiveexperience.
Remote-controlledelectronicsforlavatorytabs,enablingtheservicetechnician
1-liter urinals with Geberit technology
Hygieneandsecurityoffunctionatlowcosts
andwithlowmaintenanceareindemand
forsemi-publicandpublicplumbingareas.The
1-literurinalflushingtechnologyfromGeberit
guaranteeslowoperatingcoststhankstomini-
mumwaterconsumptionandatthesame
time,highhygienethroughflushingwithwater
followingeachuse.The1-litercompacturinal
offeredbyceramicspartnersissuitablefor
installationswithhighuserfrequencies,and
fulfilsallrequirementsintermsofprotection
againstvandalismandcleanliness.
Productdevelopment
Environmental impact of cisterns by life phase
Use(94.0%)
Rawmaterial(5.0%)
Production(0.6%)
Disposal(0.4%)
GeberitSustainabilityReport2007 31
Wonders of fluid technology
Oneofthemostimportantprerequisitesfor
theperfectfunctioningofnewproductsisopti-
mizationintermsoffluidtechnology.The
flowcircuitsaswellasthepressureandspeed
distributionofthewaterareanalyzedusing
computer-assistedsimulationtechniques.The
hydraulicscanbeoptimizedaccordingly.
ThismakesGeberitproductsevenquieterand
moreeconomizingwithregardtowater
consumption,withsimultaneouslylongermain-
tenanceintervalsforthecustomer.
tocommunicatewiththefaucetusingnormalcommerciallyavailablepocket
computers,provideaninsightintothefuture.Physicallyhandicappedpersons
willnodoubtbeparticularlypleasedbytheremotetriggeringoftoiletflushes
fromthesupporthandle.
Inthefieldofdrinkingwaterhygiene,peoplearebecomingincreasinglysensitive
andstandardsstricter.Initsnewlyestablished“DrinkingWaterHygiene”depart-
ment,Geberitexchangesexperienceandinformationwithvariousdivisions
andcountries.Thedepartmentisinclosecontactwiththemarkets,customers,
universitiesandauthorities.Itorganizestrainingmeasures,preparespublica-
tions,initiatesresearchanddevelopmentprojectsandadvisesindevelopment
matters.
Safeguarding innovation in the long term
Geberitproductsarenotlaunchedontothemarketuntiltheyhavebeentested
forallpossiblefunctionalandmaterialattributes,fulfillnormal,nationalstandards
forthecountryconcernedandhavereceivedallapprovalsrequired.Theinter-
nationallyoperatingStandards/Patents/Approvalsdepartmentappliesforthe
protectedprivilegesofnewproductsandtechnicalinnovations,monitorscom-
petitionand,ifnecessary,assertsGeberit’sinterestsinlegalproceedings.It
accompaniesproductdevelopmentinallphasesoftheproject,andcanallow
country-specificrequirementstobeincorporatedintotheproductdevelopment
atanearlystagethroughitsactiveinvolvementinnational,Europeanandinter-
nationalstandardsbodies.Eachyear,Geberitappliesforpatentsforanaverage
ofaround20products,andmonitorsworldwidepatentactivitiesinthefieldof
plumbingtechnologywithgreatinterest.Thisensuresthatdevelopmenttenden-
ciesandtrendsarealwaysidentifiedatanearlystage,analyzedandtakenup,
andtheinnovationfactorykeptfullyinformed.
32 GeberitSustainabilityReport2007
New products promote drinking water
hygiene
Longperiodsinpipingsystemswithoutmove-
mentcanresultinstandingdrinkingwater
becomingahygieneproblem.Duringthefilling
ofdrinkingwatersupplypipes,bacteriacan
besweptinwhichcanmultiplysignificantlyin
theperiodupuntilinitialuse.Geberitoffers
newproductstosolvetheseproblems:anauto-
matichygieneflushsystemthatflushesduring
idleperiodsthusreplacingthewaterinthe
pipes,andaGeberithygienefilterforbacteria-
freefillingandpressuretestingofnewinstalla-
tions.
Productdevelopment
DanielIrányifromTribecraftworkedwithGeberitontheTNG–ToiletNewGeneration–project.
TribecraftAGinZurich(CH)isaspin-offcompanyfromtheSwissFederalInsituteofTechnology(ETH)andspecializesintheplanning,designandengineeringofproducts.
The toilet of the future – what
could it look like?
Theprototypedevelopedreveals
possibletrendsinwatersavingand
flexibility:Featureswerenewflush-
ingtechnologyenablingwatercon-
sumptionoflessthan1literper
flush.Thetoiletcouldbeconnected
toanyexistingdrainagepipe.On
theonehand,thispermitsflexible
installation,i.e.youcanplacethe
toiletwhereveryoulike;ontheother
hand,italsoopensupadditional
opportunitiesintermsofarchitecture.
Does a project of this nature
require new points of reference
for development?
Duringtheinterdisciplinarycoopera-
tionbetweenTribecraft,theSwiss
FederalInstituteofTechnology(ETH)
andGeberit,weridourselves
completelyofnormalpracticalcon-
straints.Wedefinedtheareas
humanity,technologyandenviron-
ment,allofwhichweexamined
profoundly.Astudyoftheintercul-
turaluseoftoiletsattheInstitute
forEthnologyinBernerevealed
interestingaspectsofworldwide
customsandtaboos.
How does Geberit benefit
from such a long-term planned
project?
Today,areasofthefuturearebeing
openeduponathemeandknowl-
edge-basedbasis.Aprojectlikethis
isanimportantbuildingblockfor
afuture-orientedproductstrategy.
Innovativesolutionsarenotpossible
withoutchallenges.Geberithas
thishealthyattitudeofthinkinginan
uprightandlong-termmanner.
How can your results be used
now?
TheprototypeinstalledatGeberit
hasrevealedthatthetechnical
conceptfunctionssmoothlyeven
overanextendedperiod.There
wereinformativeindicationscon-
cerningpsychologicalandergo-
nomicaspectsoftheuseoftoilets.
Nevertheless,thecentralfactor
isthatelementsoftheTNGarealso
suitableformanyothersystem
approaches,forexampleurinal
applications.
GeberitSustainabilityReport2007 33
34 GeberitNachhaltigkeitsbericht2007
Precision,speedandhighlyinnovativeproductioncharacterizethecomplexmanufacture
ofMeplamultilayerpipesinGivisiez.Thankstotheoptimizationofthehotwatercircuit,
therehasbeenasignificantreductioninenergyandwaterconsumptioninrecentyears.The
investmentrequiredforthiswashigh;however,itwasamortizedafterjusttwoyears.
MichelPittetalsoinvestswillinglyinemployeetrainingonsafetyandenvironmentalprotec-
tion.ThishasnotonlymadeGeberitGivisiezagoodexamplefortheSwissNational
AccidentInsuranceFund(Suva)buthasalsomadeitpossibletoincreasetheprofitability
oftheproduction.
“Investmentsinthesavingofwater,electricityandgasareamortizedquickly.”MichelPittet,ManagingDirectorGeberitProductionPlant,Givisiez(CH)
Responsiblemanagementofproductionandprocurement
Eco-efficiencyimprovedbyanaverageof9%inthelastthreeyears
Waterconsumptionreducedbytotally35%inthelastthreeyears
Riskmanagementforsupplierstakesaccountofsustainabilityaspects
InitsCodeofConduct,Geberitsetsoutthatenvironmentalaspectsflowintoall
decision-makingprocessesandactivities,andthattheenvironmentalper-
formanceisconstantlyimproved.Correspondingmeasuresinproductionand
procurementshowthatthestatutoryrequirementsarefrequentlyexceeded
inthisrespect.
Practiced environmental management shows success
AtGeberit,therehasbeenatraditionofenvironmentalmanagementsincethe
earlynineties.Thecentralenvironmentandsustainabilitydepartmentplays
animportantroleinthisrespectandcontributestowardsmakingdecisionmakers
sensitivetotheseaspects.Thepronouncedenvironmentalawarenessresults
inconstantimprovementsineco-efficiencyaswellasminimizingcostsandrisks.
Thebasisforthisisacomprehensiveenvironmentalmanagementsystem.
Sincethebeginningof2007,GeberithasbeeninpossessionofacombinedGroup
qualityandenvironmentcertificateasperISO9001andISO14001.Asofthe
endof2006,elevenEuropeanproductionlocationswerecertifiedforthefirsttime
asperISO14001;theplantsintheUSAandChinaaretofollowbytheendof
2008.
Measurementandcontroloftheenvironmentalimpacttakestheformoftheannual
corporateeco-balance.Animportantillustrationofperformanceinthisrespect
isthecalculationoftheenvironmentalimpactwhichcoversall17productionloca-
tionsworldwideandthus85%ofthegrossvalueadded.Theenvironmental
impactiscalculatedineco-pointsinaccordancewiththeSwissEcologicalScar-
cityMethod(2006version).Intheperiod2004to2006,theabsoluteenviron-
mentalimpactfellslightlyadjustedbyacquisitions.Thesameperiodsawacon-
siderableincreaseineconomicperformanceandvalueadded.Asaresult,the
environmentalimpactpervalueaddedunit(eco-efficiency)hasincreasedby9%
p.a.overthelastthreeyears.Thisisabovethe5%targetstrivenfor.
Productionandprocurement
Development environmental impact andeco-efficiency 2004–2006
Environmentalimpact Eco-efficiency
Environmentalimpact
Eco-efficiency
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
140
130
120
110
100
90
80
70
60
5004 05 06
GeberitSustainabilityReport2007 35
·
·
·
Combined Group Certificate for Quality and Environment as of 2007
Eversincetheeighties,Geberithasbeenconcerningitselfwithecologicalmatters,andthemajorplants
wereenvironmentallycertifiedroughlytenyearsago.In2002,theGroupwithdrewfromre-certification
asthecost-benefitratiowasnolongerappropriateandthecertificationcompanieswereveryinflexible.
Today,thecertificationcompanieshavechangedsignificantly.Theyareincreasinglyplacingthemain
emphasisoftheirworkonthebenefitsfortheircustomersandnowofferthepossibilityofobtainingGroup
certificates.TheGroupcertificateenablesamoreefficientandthusmorecost-favorableprocedure.
ThisiswhythedecisionwastakentointroducethecombinedGroupcertificateQuality(ISO9001:2000)
andEnvironment(ISO14001:2004)worldwideatGeberitasofthebeginningof2007.Companies
benefitfromthereducedexternalauditingburdenresultingfromthenew3-yearcycle.Thisaffectsall
productionplantsandthecentralmanagementcompany.
Increased energy efficiency as the key to environmental performance
Atjustunder90%oftheenvironmentalimpact,energyconsumptionisofcentral
importanceforproduction.Themainenergyconsumediselectricityforthe
manufactureofsanitaryandpipingsystemsfromplasticmaterials.Ininjection
molding,blowingandextrusionprocesses,plasticgranulesismelteddown,
broughttothedesiredshapeandsubsequentlycooled.Absoluteconsumption
ofelectricityfellslightlyintheperiod2004to2006adjustedbyacquisitions.
Electricityconsumptionpervalueaddedunitwasevenreducedbytotally23%in
thesameperiod.Thisshowsthesuccessofsystematicenergymanagement
whichrelievestheenvironmentandsavescostsatthesametime.
Importantmeasuresincludeincreasingtheefficiencyofproductionfacilities,the
optimizationofcoolingplantsthroughtheuseofnaturalambientcold(free
cooling),improveduseofwasteheat(heatrecovery)aswellasthecarefuluseof
compressedair.Sofar,renewableenergieshavebeenusedmainlywithin
theframeworkoftheelectricitymixboughtin.Theaimistoachieveaconscious
expansionoftheirshareinfuture.Intermsoftherelativelylowconsumption
ofcombustibles,theaimisabovealltoimprovetheinsulationofthebuildings
andtoreplaceheatingoilbymoreenvironmentallyfriendlynaturalgas.Fuel
isusedbythecompany’sownfleetofvehicles.Sincethemiddleof2005,diesel
vehicleshavebeenpurchasedexclusivelywithparticulatefilters.
AtGeberit,emissionsofgreenhousegasesresultmainlyfromtheconsumption
ofenergyandaremeasuredinCO2equivalents.Theemissionsofgreenhouse
gasespervalueaddedunitfellby8%p.a.intheperiod2004to2006.By2009,
theaimistoachieveacumulative15%reductioncomparedwith2006.The
measuresfortheimplementationofthisobjectivearebasedonthethreepillars
“energysaving”,“increaseenergyefficiency”andthe“targetedexpansionof
theshareofrenewableenergycarriers”.InSwitzerland,Geberitisworkingwith
theBusinessEnergyAgencyandhasalsoobtainedcorrespondingCO2certifi-
cates.
Distribution of environmental impact 2006
Electricity(74%)
Disposal(9%)
Combustibles(8%)
Fuels(7%)
Processes(1%)
Water(1%)
Energy consumption
2006 2005 2004
Electricity(GWh) 113 112 115
Heatingoilextralight(t) 212 398 452
Naturalgas(m3) 4,786,443 4,910,388 4,810,222
Gasoline(l) 325,578 404,071 571,961
Diesel(l) 835,122 872,178 822,323
36 GeberitSustainabilityReport2007
Efficient management of substances and materials
Generallyspeaking,theenvironmentalrisksemanatingfromtheproductspro-
ducedbyGeberitandthecorrespondingproductionprocessesareonthe
lowside.Asimportantenvironmentalaspectsaretakenintoconsiderationas
earlyasthedevelopmentphase,itispossibletokeeptheshareofenviron-
mentallyharmfulmaterialslow.Additionally,comprehensivemanagementof
hazardoussubstancesensuresthatproductionstaffarenotexposedtoany
unnecessaryrisks.
Around75%ofthetotalof12,000metrictonsofwastein2006floweddirectly
orindirectlyintorecyclingprocesses.Despitethis,wasteisthesecondlargest
sourceofenvironmentalimpactatGeberit.Futuremeasureswillfocusaboveall
onthefurtherreductionofmixedwasteandhazardouswaste.Theconsumption
offreshwaterandtherelatedwastewaterareoflowimportance.Nevertheless,
Geberithasanimportantrole-modelfunctionhere.Thankstotheintroductionof
closedwatercircuitsandthereplacementofdirectwatercooling,therehas
beenareductionofaround35%inthetotalconsumptionoffreshwaterinthe
period2004to2006.
Reliable and environmentally friendly logistics
Withitsnewlogisticsstrategy,GeberitisaimingatGroup-wideoptimization
oftransportroutes.Almost50%ofcustomerdeliveriesaremadefromthehighly
automatedlogisticscenterinPfullendorf(DE).Additionallogisticsservicesare
providedfromtheplantsLangenfeld(DE),Jona(CH),Pottenbrunn(AT),Villadose
(IT),Aylesford(GB)andRuše(SI).InChinaandNorthAmerica,thelocalstruc-
turesandthegloballinkwillbereviewedandoptimizedin2007aspartofthe
strategicorientation.Variousmeasureswillbetakentoreduceenvironmental
impactfromlogistics:environmentallyfriendlyvehiclesasarequirementonfreight
forwarders,bundlingoffreight,preparationofoptimumtourplansaswellas
theavoidanceofincorrectdeliveries.
Water and energy savings thanks to
process optimization
Meplamultilayerpipesaremanufacturedat
theGivisiez(CH)plant.Thefinalprocessstage
comprisestheinterlinkingofthepipesinan
autoclave.Thisiscarriedoutunderpressure
withheatingtoaround110degreesCelsius.
Previously,thewaterhadtobeletoffaftereach
passage.Theinstallationofaspecialfilter
nowmakesitpossibletorecyclethewaterfully.
Waterconsumptionpermeterofpipeis
reducedby60%andenergyconsumptionby
25%.Asaresult,ithasbeenpossibleto
reduceannualwaterconsumptionby30,000 m3.
Productionandprocurement
Consumption of materials
(inmetrictons) 2006 2005 2004
Rawmaterialplastics 59,880 68,459 62,779
Rawmaterialmetal 57,491 44,383 55,639
Otherrawmaterials 1,016 1,241 n.a.
Semi-finishedproducts 29,049 24,610 21,888
Finishedproducts 56,326 45,807 30,401
Total consump-tion of materials 203,762 184,500 170,707
Waste
(inmetrictons) 2006 2005 2004
Incineration 779 675 751
Incinerationofhazardouswaste 218 173 127
Recyclingofhazardouswaste 1,447 1,312 896
Inertwastelandfill 523 314 491
Mixedwastelandfill 1,315 1,494 1,710
Recycling 7,716 7,635 7,118
Total waste 11,998 11,604 11,092
2004 2005 2006
300,000
250,000
200,000
150,000
100,000
50,000
0
Water consumption 2004–2006(inm3)
Freshwater
Wastewater
GeberitSustainabilityReport2007 37
Environmentally friendly logistics with
the railways
InAustria,GeberitHuterissendingalarge
partofproductdeliveriesbyrail.Over3,600
deliveriesor1,300metrictonsaresenteach
yearviatheenvironmentallyfriendlyRailCargo
Austria.Thisformoftransportdoesnotresult
inlongerdeliverytimes.Theefficientlogistics
systemstartswiththetransportorderinthe
morning.Deliveryandfinedistributiontothe
respectivelogisticscenterarecarriedoutby
truck,themaintransportstretchistraveledat
nightbyrail.
Western Europe as the dominant procurement market
Theprocurementofrawmaterials,semi-finishedandfinishedproductswitha
worldwidepurchasingvalueofCHF676millionin2006isofgreatimportancefor
Geberit.WesternEuropeisbyfarthemostimportantprocurementmarket
withashareofaround90%.Nevertheless,thesignificanceofothermarketsis
increasing.Theworldwideprocurementpolicyhasbeendeterminedwithin
theframeworkofatotalcostapproachandtakingaccountofrisksidentified.
CurrenttrendsgiverisetoexpectationsofanincreaseinprocurementfromAsia.
High requirements on suppliers
Procurementisbasedonproveneconomicguidelines.Forexample,theriskof
reciprocaldependencybetweensupplierandGeberitshouldbekeptaslow
aspossible.IfGeberitcontributesmorethan30%tothesupplier’svalueadded,
farther-reachingcontractualmeasuresmustbeagreedinordertoprotect
bothsides.Geberitalsohashighrequirementsintermsofenvironmentaland
socialconduct.Thequalityrequirementshaveapositiveeffectonsustainability.
Theyrequirethoroughcontrolofprocessesbythesuppliers,aswellaswell-
trainedandqualifiedemployees.Theriskofpoorworkingconditionsorchildlabor
isthereforerelativelylow.Nevertheless,nothingislefttochance.Since2005,
Geberithasintroducedsystematicriskmanagementforsuppliersthatalso
assessessustainabilityrisks(includingrespectforhumanrights).Thisisimposed
onallnewsuppliersand,periodically,onthe25mostimportantsuppliersper
productgroup.Cooperationorsupplycontractsincludethebindingintegration
ofsocialandenvironmentalaspects.Inaddition,theintroductionofaCode
ofConductespeciallyforsuppliersisplannedfor2007.Buyerswillbegivencor-
respondingtrainingandthusmadeincreasinglysensitivetoenvironmental,
socialandqualityaspects.Theinternalcorporateauditdepartmentchecksthe
processinordertokeeprisksatalowlevel,particularlyinnewmarkets.
Purchasing value 2006 by region
WesternEurope(90%)
EasternEurope(3%)
America(3%)
Asia(3%)
Others(1%)
38 GeberitSustainabilityReport2007
Productionandprocurement
Environmental and social objectives in
China
Thehighenvironmentalandsocialstandards
ofGeberitalsoapplyforcontractpartners
worldwide.Thisincludes,forexample,aman-
ufactureroffaucetsproducinginChina.As
acontractpartner,thiscompanyhasmadethe
commitmenttoprotectitsemployeesfrom
discriminationandabuseofthelaw,aswellas
torejectchildlabor.Thedeliveryrelationmust
notbeattheexpenseofsustainablesocialand
ecologicaldevelopment.
ThomasHübnerreportsonthelong-standingsupplierrelationwithGeberit.
HübnerGmbHisamedium-sizedcompanyinMarktoberdorf(DE)withextensiveexperienceinplasticsgalvanizing.
What form does the cooperation
with Geberit take?
Geberithasbeenacustomerof
ourssince1972.Wecooperatein
thefieldofgalvanizedplasticparts
suchasactuatorplates,outletsand
traps.Inconcreteterms,this
involvesthejointdevelopment,the
productionoftheinjectionmolding
tool,theactualproductionthrough
galvanizingoftherawpartthrough
tolaserinscription,assemblyand
packingforaspecificplasticpart.
What is your recipe for success
as regards long-term business
relations?
Themotivationforallofusisvery
easilyexplained:Workingtogether
towardsagoalandpullingtogether
isfun.Thusitisthat,asregardsthe
cooperationwithGeberit,wedonot
considerourselvesashavingaclas-
sicalsupplier-customerrelation;
rather,weregardourselvesasbeing
“ateyelevel”withthecustomerina
partnership-likesense.Forexample,
wealsocarryoutajointannual
reviewofthefinalcontrolssothatno
artificialwasteisgenerated.
Environmentally friendly
galvanic processes – is that at
all possible?
Yes,butitisaprocess.Ournew
plasticgalvanizingprocessthatwe
havebeenusingsince2003,
wasamajorstepforward.Thisuses
anoticeablymoreenvironmentally
friendlyprocess.Thankstothe
shorterprocess,harmfulchemicals
thataremoredifficulttotreatin
wastewaterareavoided.Theuseof
thisprocesswasalsorecom-
mendedandwelcomedbyGeberit.
Currently,forexample,wearemak-
ingjointattemptstoswitchfrom
problematic,hexavalentchrometo
moreenvironmentallyfriendly
chrome.Thisalsobenefitsindustrial
safety.
Are environmental audits by your
customers actually a help?
Yes,forustheyprovideanimpor-
tantinsightbyanoutsideparty
whichmakesiteasiertorecognize
opportunitiesforimprovement.
Weobtainedgoodimpulsesabove
allintermsofriskmanagement.
Theseenabledustoderivedirect
measures.
GeberitSustainabilityReport2007 39
40 GeberitNachhaltigkeitsbericht2007
TheBalmFoundationisafacilityformentallyhandicappedpeople,andperformsassembly
andpackingworkforGeberitasaprofit-orientedindustrialpartner.Theworkisnotsimplyjust
anoccupationforthehandicappedpeople;italsofulfilsthehighrequirementsintermsof
theefficientprocessingofaround250differentGeberitarticles.Geberitprovidesandmaintains
themachinesanddevicesrequired.ForKurtGüttinger,thecooperationwithGeberitis
characterizedbygoodcommunicationandlong-termpartnership.Ifaproductisdiscontinued
byGeberit,theBalmFoundationfrequentlyobtainsthecontractforthesuccessorproduct.
“Forover40years,Geberithasbeenenablingourspecialneedsemployeestoexperienceameaningfuleverydayworkinglife.”KurtGüttinger,ManageroftheIndustrialWorkshopoftheBalmFoundation,Jona(CH)
Socialcommitment
Clearcriteriaforsocialcommitment
DonationsandcontributionsofCHF8.8millionin2004–2006
Anti-corruptionmeasuresstrengthened
Geberitwishestopromotequalityoflifethroughinnovativeproducts.Innovation
andqualityoflifearethereforealsoofcentralimportanceforthecompany’s
socialcommitment.ForGeberit,highethicalstandardsareamatterofcourse.
Focus on innovation and access to basic plumbing facilities
GeberitmadedonationsandcontributionstotalingCHF8.8millionin2004
to2006.Inaddition,facilitiesforhandicappedpersonsandthelong-termunem-
ployedwereawardedorders(simpleassemblyandpackingwork)ofaround
CHF8million.DonationsofCHF1.9millionweremadein2006,amongstother
thingsformaintainingSwitzerland’sinnovativestrengththroughcontributions
totheETHZurichFoundation.InRapperswil-Jona(CH),thecompany’shead-
quarters,asubstantialcontributionwaspaidtowardsexpansionoftheindoorice
arena.Theaimofthisinvolvementistopromoteup-and-comingsportingtalent.
AtGeberit,thereisatraditionoffinancial,materialanddirectsupportoflocal
initiativesaswellasofassociationsandprojectsatthelocations.Whenitcomes
tomajorinternationalaidprojects,Geberitattachesimportanceaboveallto
ensuringthatthecombinationoffinancialsupport,donationsofmaterialandthe
transferofknow-howguaranteesasustainedeffectwiththemaximumbenefit
forthoseconcerned.Examplesofthisare:
·reconstructionofaschoolfor400orphanedchildreninBandaAceh,Indonesia,
destroyedbytheTsunami
·freematerialfortheproductionofsimplebuteffectivewaterfiltersforthepopu-
lationinVietnam
·buildingofaccommodationforaround400femaleclothing-factoryemployees
inCambodia:planningoftheentireplumbingfacilities,financing,supplyof
materialandtraining
Formanyyears,GeberithasalsobeenworkingwiththeGermanenvironmental
organizationBUND(FederalSectionBaden-Württemberg)forresponsible
handlingofwater(www.ja-zum-wasser.de).Throughallofthesecommitments,
Socialcommitment
GeberitSustainabilityReport2007 41
·
·
·
Waste water tower for the Beijing
University of Technology
SavingwaterisanimportanttopicinChina.
Nevertheless,usinglesswatercreatesincreased
demandsonhydraulicsindrainagesystems.
Thewastewatertower,builtwiththefinancial
supportofGeberit,fulfilstheroleoftraining
futureengineersinthefieldofmodernwaste
watertechnology.Atthesametime,the
UniversityofBeijingalsousesthe8-meter-high
and5-meter-widedemonstrationobjectfor
scientificexchange.
Geberitwishestomakeapositivecontributiontosociety,andalsoreceives
excitingimpulsesforinnovationsandnewbusinessideas.Thesecommitments
alsohaveapositiveeffectonemployeeloyalty.Clearcriteriahavebeendrawn
upforfurtherfocusingofthesocialcommitment.Centralcriteriainthisrespect
areproximitytoplumbingtechnologyandtotheGeberitculture,internationalori-
entationaswellassupportfortheUnitedNationsmillenniumdevelopmentgoals
concerningglobalaccesstocleandrinkingwaterandfundamentalplumbing
facilities.Wearecurrentlysearchingforamainpartnerforalong-termcoopera-
tionarrangement.Alldonationsandrelatedcommitmentsareneutralfroma
partypoliticalpointofview.Geberitmakesnosignificantdonationstopartiesor
politicians,usuallymakesnopoliticalstatementsanddoesnotinvolveitselfin
politicallobbying.
A fair partner with high ethical standards
ForGeberit,faircompetitionthroughouttheworldisamatterofcourse.Price
agreements,otherformsofcartelsorothercompetition-distortingactivitiesare
rejected.Thecompanyhasneverbeenthesubjectofsignificantinvestigations
concerninganti-competitivebehaviorand,asanactivememberoftheinterna-
tionalorganizationTransparency,iscommittedtohighstandardsincombating
corruption.Auditingoftheproductionplantsandsalescompaniesbytheinternal
auditdepartmenttakesaccountofcorruptionaspects.IntheeventofTranspar-
encyindicatinganincreasedriskofcorruptionforacountry,thecompanycon-
cernedissubjectedtoaparticularlyintensiveaudit.In2006,acaseofcorruption
wasdiscoveredinSouthKoreaandledtotheinstantdismissaloftheemployee
concerned.ThenewGeberitCodeofConductcontainsclearrulingsonthe
preventionofcorruptionandonrespectforhumanrights.Allemployeesarein-
formedoftheCodeandobligedtoadheretoit.
42 GeberitSustainabilityReport2007
Reconstruction of a school for 400
orphaned children following the Tsunami
IncooperationwiththeSwissRedCross,
Geberitparticipatedinthereconstructionofa
schoolfor400orphanedchildreninBanda
Aceh,Indonesia.Geberitassumedthefull
costsforallplumbingfacilitiesaswellasproject
planningandtrainingofthecraftsmenonsite.
InJanuary2007,aGeberitteamfromSinga-
poretravelledespeciallyforcorresponding
training.Asaresult,thepopulationaffectedcan
benefitfullyfromthecorecompetencesof
Geberitandsignificantlyimproveitsqualityof
life.
HeidiBucher,HeadofMarketingCommuni-cationatGeberit,spentaweekworkingintheSteinhofnursinghomeinLucerne(CH).
Today,socialcompetenceonthepartofman-agersisingreaterdemandthanever.The“SeitenWechsel”(Changeofsides)teachingprogramoftheSwissNon-Profit-MakingSociety,supportedbyGeberit,offersthepos-sibilityoffurtherdevelopingone’sownknowl-edgeandcapabilitiesinthisfieldandofgainingvaluableexperienceinasocialinstitution.
What form did your work in the
nursing home take?
Igainedaninsightintoverydiffering
areasofwork.Forexample,with
thedailyhealthreportofthehome
residentsorbyhelpingwiththe
preparationofmedicine.Apleasant
aspectofmyworkwastalkingto
thehomeresidents,modelingor
accompanyingthemonavisittoan
exhibition.
What aspect of your work in the
nursing home created a particular
impression on you?
Thedailyworkisaboutpeopleand
theirphysicalandmentalconstitu-
tion.Ifthehomeisanurseshort,
thereisanimmediateneedfora
replacement,asthecarecannotbe
postponedfordays.Thismadeit
cleartomehowunexpectedlysick-
nessescanoccur.Ontheother
hand,therewereimpressiveand
motivatingmeetingswithhomeresi-
dentsagedover80.Thatmakes
youthinkmoreaboutage.
What is your conclusion?
Thisweekwasanenrichmentfrom
apersonalpointofview.Igained
additionalunderstandingofand
respectforfellowhumanbeings
whosefrailtydoesnotmeanhaving
tosacrificeintellectualpresence,
orwhocanstillbeinterestingpersons
evenfollowingrepeatedaddiction
toalcohol.Howspecificcaretech-
niques–forexampleactivationther-
apiesorbodyhygiene–canstimu-
latethelifeofthoseincareand
facilitatemattersforthecarers,was
somethingthatimpressedme.
And compared with your other
work?
Foronceitwasnotaboutcomparing
salesfigures.Itwasabouttaking
pleasureintheemotionalandphysi-
calwell-beingofpeople.Itwasnice
alsotohavetimeforobservations.
Iamcertainthattheexperience
gainedwillflowintomyfuturework-
inglifeinavarietyofways.This
couldtaketheformofquestioning
prejudices,pursuingunusualsolu-
tionsorlisteningmoreprofoundly.
Socialcommitment
GeberitSustainabilityReport2007 43
CorporateGovernance
Geberitpracticescleardecision-makingprocessesandapolicyoftransparent
information,includinginparticularasregardsCorporateGovernance.This
ensuresthatthecompanyismanagedwithalong-termorientationandthatthe
interestsofshareholdersaresafeguarded.
AnextensiveillustrationoftheCorporateGovernanceinaccordancewiththe
correspondingguidelinesoftheSwissStockExchange(SWX)isincludedin
theannualreport.Atthispoint,weshallthereforerestrictourselvestoselected
aspectsconcerningresponsible,sustainablecorporatemanagement.
Clear rules on management and control mechanisms
TheBoardofDirectorsdeterminesthestrategicobjectivesandthegeneralfunds
forachievingthese,anddecidesonmajorbusinesstransactions.TheBoardof
Directorsismadeupofsixmembers,noneofwhichisinvolvedinoperative
management.Asof31.12.2006,GünterF.KelmwasChairmanandKurtE.Feller
ViceChairman.TheBoardofDirectorshasformedtwocommittees.ThePer-
sonnelCommitteepreparesproposalsconcerninghumanresourcesdecisions,
remunerationmodelsaswellasconcerningtheannualremunerationofthe
BoardofDirectorsandGroupManagement,andsubmitsthesetothefullBoard
ofDirectors.ThecommitteeismadeupofthreemembersoftheBoardof
Directors,withtheViceChairmanasChairman.TheAuditCommitteeistheupper-
mostsupervisionbodyforinternalandexternalaudits,andmonitorsfinancial
reporting.AllmembersoftheBoardofDirectorsbelongtothiscommittee.The
ViceChairmanistheChairmanoftheCommittee.
TheremunerationoftheBoardofDirectorsispaidintheformofsharesandset
outintransparentformintheannualreport.Inordertoencouragealong-
termorientationofdecisionsoftheBoardofDirectors,thesesharesareblocked
fortwoyears.TheBoardofDirectorsreceivesadiscountontheshareprice
dependentonthesuccessofthecompany;thisdiscountcorrespondstothatof
theemployeeswithintheframeworkoftheemployeeprograms.Theperiodof
officeofamemberoftheBoardofDirectorsisthreeyears,thestatutoryagelimit
is70.Reelectionisonanindividualbasisandisstaggered.Therearenocross
interests–i.e.reciprocalseatsonboardsofdirectors.
Participatory rights of the shareholders
PersonsenteredintheshareregisterofGeberitAGasashareholderwithavoting
rightareentitledtovote.Treasurysharesdonotentitletheholdertovote.
44 GeberitSustainabilityReport2007
CorporateGovernance
Onapplicationandagainstevidenceofacquisition,personsacquiringsharesare
enteredintheshareregisterasashareholderwithavotingright,provided
theyissueanexplicitdeclarationthatthesharesareheldintheirownnameand
fortheirownaccount.Theentryofsharesheldbynomineesisrestrictedas
setoutindetailintheannualreport.
TheGeneralMeetingisconvenedbytheBoardofDirectorsatthelatest20days
beforethedateofthemeeting.Thearticlesofincorporationdonotincludeany
rulesonparticipationthatdifferfromthelaw.TheGeneralMeetingcanonlypass
resolutionsconcerningmattersindicatedatthetimeofconvening.Excepted
fromthisareapplicationsfortheconveningofanExtraordinaryGeneralMeeting
orfortheperformanceofaspecialaudit.Shareholdersrepresentingshares
withanominalvalueofCHF4,000candemandinclusionofitemsontheagenda.
Thismustbedoneinwritingatleast45daysinadvance.
Group Management responsible for the implementation of the strategic
objectives
Withinthescopeofthelegallimits,theBoardofDirectorshastransferredoperative
managementofthecompanytotheChiefExecutiveOfficer(CEO)–sincethe
beginningof2005AlbertM.Baehny.TheGroupManagementbelowtheCEOis
madeupofafurtherthreememberswhoareresponsibleforthedivisionsSales,
ProductsandFinance.Themaindepartmentsresponsibleforsustainableman-
agementofthecompany–HumanResourcesandEnvironment/Sustainability–
reportdirectlytotheCEO.
TheGroupManagementprovidestheBoardofDirectorswithcomprehensive
informationconcerningfundamentalbusinesstransactions,theongoingcourse
ofbusinessandthefinancialsituationofthecompany.Reportingiscarriedout
ontheoccasionofeachmeetingoftheBoardofDirectorsaswellasinwritten,
monthlyreports.Inaddition,acomprehensivesystemforcontrollingbusiness
riskshasbeenintroducedbyorderoftheBoardofDirectors.
TheremunerationoftheGroupManagementismadeupofafixedsalary,abonus
dependentontheresultsofthecompany,aswellasanindividualperformance
component.Theremunerationissetoutinatransparentmannerintheannual
report.
GeberitSustainabilityReport2007 45
GlobalReportingInitiative–indexofcontents
ThepreparationofthisreportisbasedontheguidelinesoftheGlobalReporting
Initiative(GRI).GRIhassetitselftheobjectiveofmakingglobalcorporatereport-
ingmoretransparentandmorecomparable(www.globalreporting.org).The
guidelinescoverreportingonoverridingmatterssuchassustainabilityobjectives
andstrategy.Furthermore,managementapproaches(DMA)andnumerous
performanceindicatorsinthefieldsofeconomics(EC),environment(EN),prod-
uctresponsibility(PR),laborpractices(LA),humanrights(HR)andsociety(SO)
shouldbedisclosed.Thefollowingtableincludesalistforspeciallyinterested
partiesconcerningthesectionsofthereportinwhichGRIindicatorsare
describedforGeberit.InformationonfurtherGRIindicatorsforGeberitcanbe
foundinthesustainabilitysectionofthewebsite(www.geberit.com).Thepresent
reportandthedetailedGRIContentIndexintheInternetcovertheGRIguide-
linesinfull,thusfulfillingtheA-levelofthelatestGRIG3guidelines.Thiswas
checkedandapprovedbyGRI.Inthisway,Geberitwishestounderlineitsrole
asaleaderinsustainability.
Section of the report Pages GRI points described
ForewordbytheCEO 2–3 1.1
TheGeberitGroup 4–5 2.1,2.3,2.4,2.5,2.6,2.7,2.8
Ourproductsandourproductknow-how 6–7 2.2
Apracticedcommitmenttosustainability 8–11 1.2,4.8,4.12,4.13,4.14,4.15,4.16,4.17,EC-2,EC-9,DMA-EN,EN-6,
EN-26,DMA-LA,DMA-HR
Amarketleaderwithafocus 12–15 2.9,2.10,DMA-EC,EC-1
Satisfiedcustomersthankstonewstandardsinplumbingtechnology
16–21 EC-8,DMA-PR,PR-1,PR-2,PR-4,PR-5,PR-6,PR-8,PR-9
Thinking,shaping,changing:workingforGeberit
22–27 2.9,2.10,4.8,EC-5,DMA-LA,LA-1,LA-2,LA-5,LA-7,LA-8,LA-10,LA-11,
LA-12,LA-13,DMA-HR,HR-6,HR-7
Innovationfactoryforsustainableproducts 28–33 DMA-EN,EN-6,EN-26,DMA-PR
Responsiblemanagementofproductionandprocurement
34–39 DMA-EN,EN-1,EN-3,EN-5,EN-8,EN-16,EN-18,EN-21,EN-22,
EN-29,DMA-HR,HR-2
Socialcommitment 40–43 EC-8,EC-9,HR-3,DMA-SO,SO-2,SO-3,SO-4,SO-5,SO-6,SO-7
CorporateGovernance 44–45 2.3,4.1,4.2,4.3,4.4,4.5,4.6,
GlobalReportingInitiative–indexofcontents 46 3.12
Aboutthisreport 47 3.1,3.2,3.3,3.5,3.6,3.7,3.8,3.9,3.10,3.11
Backcover 50 3.4
46 GeberitSustainabilityReport2007
Aboutthisreport
ThisisGeberit’ssecondSustainabilityReport.Itexpandsonandupdatesthe
firstreportonsustainabilityfromtheSummerof2004.Throughthisreport,
Geberitisfulfillingitsstatedintentionofpublishingadetailedreportonsustain-
ablecorporatemanagementeverythreeyears.Assuch,thereportcoversthe
financialyears2004to2006.Asarule,theinformationisbasedonthisthree-
yearperiodoronthesituationasoftheendoftheperiodunderreview,i.e.
31.12.2006,asregardsvaluesforaspecificpointintime(inventoryvalues)oron
thefinancialyear2006asfarasannuallydeterminedvaluesareconcerned
(cumulativevalues).Incaseswhereindividualinformationisbasedonotherperi-
ods,thisisstatedexplicitly.
Generallyspeaking,thereportconcernstheentireGeberitGroup.Ifonlypartof
thecompanyismeantasanexampleorasaresultoftheavailabilityofdata,
thisisclearlyindicated.Allrelevanteconomic,environmentalorsocialeffectsof
thecompanybasedontheGRIguidelineshavebeendiscussedinsofaras
correspondinginformationwasavailable.Thepresentreportdiffersfromthe2004
reportintermsoftheindicatorsandmeasuringmethodsstated,abovealldue
totheuseofthenewGRIG3reportingstandardasabasis.Theguidelinesofthis
newGRIstandardwereappliedwhereverthedatasituationpermittedthis.
Geberitalsoprovidesinformationonaspectsofsustainabilityinitsannualreports.
Additionally,regularlyupdatedinformationonthesubjectisavailableintheInternet.
Allstatementsincludedinthisreportwhichdonotconcernhistoricfacts,are
futurestatementswhichgivenoguaranteewhatsoeverintermsoffutureperfor-
mances;theyincluderisksanduncertainties,including,butnotrestrictedto,
futureglobaleconomicconditions,currencyexchangerates,statutoryregula-
tions,marketconditions,activitiesofcompetitorsaswellasotherfactorsoutside
ofthecontrolofthecompany.
TheSustainabilityReport2007ispublishedinGermanandEnglish,andisalso
availableasanonlineversionintheInternet.TheprintedGermanversionis
binding.
SustainabilityReport2007 47
Concept, content:sustainservGmbH,ZurichandBoston,Geberit
Texts:sustainservGmbH,Burson-Marsteller,Zurich,Geberit
Layout and design:WirzCorporateAG,Zurich
Prepress/Press:Linkgroup,Zurich
Pictures:AndreasMader(Peoplephotog-raphy),BenHuggler,ÖBB,Geberit
Furniture:wohnbedarfag,Zurich
Paper:PlanoArt
Cert no. SQS-COC-100142
Sustainably enhancing quality of life
Geberit’s objective is a sustained improvement in the quality of people’s
lives through innovative solutions in plumbing technology, thus assuming
economic, ecological, and social responsibility. This is how Geberit inter-
prets sustainability.
Geberit is the European market leader in plumbing technology and is globally
oriented. The products, systems and services are continuously being further de-
veloped and set new standards. This is only possible thanks to the top-level
performance of our employees and long-term partnerships with companies and
organizations from the fields of business, research and society. Because this
is always a matter of dialog and cooperation with people, we allow these to have
their say in our Sustainability Report 2007. Our central theme of water – in all its
manifestations – forms the backdrop for this.
Sustainably enhancing quality of lifeSustainability Report 2007
Geberit AG
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