Planet

Progress 2024

The lower sales and production volumes in financial year 2024 resulted in a reduction in absolute numbers of the following key performance indicators:

Energy consumption (-28.4 percent), greenhouse gas emissions (GHG emissions) scope 1 and 2 (-32.6 percent), water withdrawal (-21.3 percent) and waste generated (-23.8 percent). Although this raised the intensity rate for the relevant environmental key performance indicators, Rieter was able to achieve all intensity targets in 2024.

• The share in renewable energy consumption increased by 5.7 percentage points to 28.6 percent. Rieter is currently developing a plan to switch consumption of purchased electricity, gas and crude oil to 100 percent renewable sources by 2030.
• In 2024, Rieter began to calculate and report initial scope 3 GHG emissions. Total GHG emissions (scopes 1, 2 market-based, and 3) amount to 4 246 369.5 tCO₂e. The use of products sold in the scope 3 category 11 has the largest impact on Rieter’s GHG emissions at 4 100 000 tCO₂e or 96.6 percent. In 2025, Rieter aims to start development of measures to reduce GHG emissions in this category.
• In 2024, the recycling rate decreased by 7.9 percentage points to 83.4 percent, due to one-time effects from the office relocation to the Campus in Winterthur (Switzerland).
• 2025: Rieter plans to develop new environmental targets for 2030, improve GHG emission calculation of scope 3 and work on the financial quantification of climate-related risks linked to TCFD. The company’s net zero roadmap 2040 is under development.

Environmental disclosures

Environmental topics, such as energy consumption and emissions reduction, water conservation, waste management and pollution prevention, are essential for sustainable development and for safeguarding natural resources for future generations. Addressing these issues minimizes ecological impacts, ensures operational efficiency and helps Rieter to comply with regulations while reducing operational risks.

Rieter’s Code of Conduct reinforces these environmental priorities by setting expectations for responsible and sustainable behavior, guiding employees and stakeholders to act with integrity in ways that protect the environment. The Supplier Code of Conduct extends these values to the entire supply chain, ensuring that suppliers also adhere to standards that minimize pollution, waste and water consumption. Additionally, the company’s robust Risk Management Policy helps to identify and mitigate environmental risks, such as potential contamination or excessive emissions, allowing Rieter to proactively manage these issues and reduce the company’s impact on the environment.

Climate change

Material impacts, risks and opportunities

The double materiality analysis identified climate change, including energy consumption, as a material issue in the short, medium and long term. This is due to the energy requirements of manufacturing machinery and production facilities, as well as the high cost and volatility of energy prices. In addition, the risk of a global energy crisis remains. The company’s GHG emissions are presented on a global scale, with Rieter’s sites distributed worldwide. For more information on the anticipated material physical and transitional risks and potential opportunities with regard to climate change, see the TCFD statement.

With an energy consumption intensity of 0.0978 MWh per CHF 1 000 sales, Rieter was again below the target of 0.1000 MWh per CHF 1 000 sales. The 2024 financial year was characterized by lower customer demand, which led to a decrease in sales and production volumes compared to 2023. Lower production volumes resulted in a reduction in energy consumption of 28.4 percent to a total of 84 027.6 MWh in 2024.

Rieter’s European sites were the main consumers of purchased electricity from both renewable and nuclear sources whereas those in Asia were the main consumers of purchased electricity from fossil sources. At company-owned sites in China, India and the Czech Republic, Rieter has a total capacity of 6 800 MWh for self-generated solar energy. The increase in the share of energy consumption from renewable sources from 22.9 percent to 28.6 percent at December 31, 2024 is mainly related to a disproportionally higher reduction in energy consumption from fossil and nuclear sources. Rieter is currently developing a plan to switch consumption of purchased electricity, gas and crude oil to 100 percent renewable sources by 2030.

At 1 047.3 MWh, the fuel consumption from crude oil for heating returned in 2024 to the level of 2022. The security reserve of crude oil for heating, which was consumed in 2023 as a result of the global energy crisis, was no longer required in 2024.

In 2024, the energy consumption of purchased electricity was allocated into renewable and non-renewable sources for the first time. The comparative period 2023 has been adjusted accordingly. In 2023, the allocation of purchased electricity in renewable and non-renewable sources resulted in an increase in the share of energy consumption from renewable sources (2023: increase from 15% to 22.9%).

Transition plan to climate change mitigation

Rieter is committed to minimizing its impact on the environment in line with the Paris Agreement. As a first step in developing the transition plan, Rieter has assessed its GHG footprint including scope 1, 2 and 3 emissions. Due to the nature of Rieter’s business, scope 1 and 2 emissions are estimated to be low compared to the company’s overall footprint. A full calculation of the complete scope 3 emissions is currently ongoing and expected to be improved for the 2025 financial year.

Rieter has identified the following decarbonization levers for scope 1 and 2 emissions, as well as associated targets:

In 2024, Rieter committed to submit a net-zero GHG emission target for validation by the Science Based Target initiative. A large number of departments are involved in the decarbonization process. Scope 1 and 2 GHG emissions are managed centrally by the global Sustainability and Environment, Health and Safety (EHS) department. Local EHS is responsible for projects related to infrastructure, while projects related to GHG emissions are identified and implemented by the managing directors of each site.

In 2024, Rieter started differentiating between location- and market-based scope 2 GHG emissions. The comparative period 2023 has been adjusted accordingly.

Methodologies and assumptions

Calculation of GHG emissions is performed according to the GHG Protocol and covers all GHG emissions as agreed by the Kyoto Protocol (CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃). Scope 1 GHG emissions related to refrigerants were not calculated as the associated data was not available. However, the impact of refrigerants on Rieter’s GHG emissions is expected to be insignificant. Scope 1 and 2 GHG emissions are related to the energy consumption of Rieter’s owned or leased sites and other assets (e.g. vehicles), and are therefore calculated based on the operational control assumption. Rieter accounts for 100 percent of emissions from operations over which it has operational control. Leased sites have been included insofar as Rieter is able to control the GHG emissions at the respective sites.

Energy data is mainly primary data from energy invoices and meter readings. For offices in shared buildings or small area offices, energy consumption was allocated according to square-meter share wherever possible. Energy consumption for 2024 was collected for the first ten months based on direct data, while the months of November and December were estimated based on the previous year or expected values. The data is collected in a company-owned, comprehensive database called Social, Environmental, Economic Data (SEED).

None of Rieter’s scope 1 GHG emissions were regulated in emission trading schemes. Emission factors used for scope 1 GHG emissions calculation are in line with the emission factors presented by the United Kingdom Department for Environment, Food and Rural affairs (DEFRA), which is widely recognized as an industry benchmark in this area.

In 2024, Rieter made progress in improving its methodologies and assumptions with regard to the calculation of GHG emissions by differentiating between location- and market-based scope 2 GHG emissions. Location-based scope 2 GHG emissions purchased from renewable and non-renewable electricity sources were calculated using the most recent country-specific electricity grid emission factors. The respective emission factors were released by Carbon Footprint Ltd., a British-based carbon calculator consultancy, and were based on the Statistical Review of World Energy 2024 from the Energy Institute, an organization for professionals in energy-related fields. The emission factors represent fuel mix data from 2022 published in 2024.

Market-based scope 2 GHG emissions were calculated by each site using supplier-specific emission factors requested from the respective energy suppliers. Where an energy supplier was not able to provide specific emission factors, the location-based emission factor as mentioned above was used. The most recent emission factor data available was from the year 2022.

At 96.6 percent, GHG emissions from the use of sold products (category 11) have the biggest impact on Rieter’s GHG footprint. These emissions were calculated considering the annual energy consumption of the respective machine type (ring spinning, air-jet spinning, etc.), an expected useful life of 15 years and an average global emission factor. This category covers the main division Rieter Machines & Systems.

Scope 3 GHG emissions from upstream activities (categories 1, 2, 4, 5, and 6) use indirect sources such as industry-average emission factors converting expenditure into CO₂e and covering 74.0 percent of sales. Emission factors used are in line with spend-based emission factors presented by the US Environmental Protection Agency.

All categories not listed in the table above are expected to be less significant. For 2025, Rieter aims to improve data availability and calculation methods by collecting supplier-specific information.

With a NO_x and SO₂ intensity of 0.0112 kg per CHF 1 000 sales, Rieter was slightly above the target of 0.0100 kg per CHF 1 000 sales. The decrease is in line with the reduction in the energy consumption. In 2024, the SO₂ emissions returned to 2022 levels as the security reserve of crude oil for heating, which was consumed in 2023 as a result of the global energy crisis, was no longer required in 2024.

Nitrogen oxide (NO_x) and sulfur dioxide (SO₂) emissions are related to the energy consumption of Rieter’s owned or leased sites and other assets (e.g. vehicles).

SO₂ and NO_x emissions are formed in industrial plants when fossil fuels are burned during the production process. Emergency generators are also used at some sites to maintain production capacity in the event of a power outage. Legally required air purification systems and filters at all Rieter production sites help reduce acidification. Emission factors used for calculating NO_x and SO₂ emissions are in line with the emission factors presented by DEFRA.

Resource efficiency and circular economy

Material impacts, risks and opportunities

In connection with resource efficiency, there is a particular focus on the topics of water reduction and waste avoidance. Water is a critical resource with material impacts on Rieter’s operations and global sustainability efforts. Effective water management can enhance operational efficiency and reduce costs. The risk associated with water scarcity and pollution may jeopardize supply chains and harm Rieter’s reputation within the communities in which its subsidiaries operate.

Local EHS departments are responsible for compliance with local legislation, the management of water permits and reporting requirements.

Waste generation, treatment and disposal are significant for Rieter as they directly impact operational efficiency, regulatory compliance and environmental sustainability. Poor waste management poses significant risks, including legal penalties, increased disposal costs and reputational damage. Through waste reduction and waste recovery, Rieter can reduce costs as well as strengthen its environmental footprint and its reputation among stakeholders as an environmentally conscious company. Local Environment, Health and Safety (EHS) departments are responsible for waste management and increasing the recycling rate. The local EHS management receives special training for this purpose.

With a water withdrawal intensity of 0.254 m³ per CHF 1 000 sales, Rieter again achieved the target of 0.275 m³ per CHF 1 000 sales. The 2024 financial year was characterized by lower customer demand, which led to a decrease in sales and production volumes compared to 2023. Lower production volumes resulted in a reduction in water withdrawal of 21.3 percent to a total of 217 998.7 m³ in 2024.

As a result of a change in methodology, the scope was extended by adding surface water to the water withdrawal figure in 2024. The comparative period 2023 has been adjusted accordingly.

Methodologies and assumptions

Municipal water withdrawal includes water purchased from external parties, mostly from local authorities. Ground water was withdrawn from Rieter-owned groundwater supplies, whereas surface water was withdrawn from rivers or lakes near Rieter sites.

Water withdrawal was measured for owned and leased sites in line with the operational control approach. Leased sites have been included insofar as Rieter is able to control water withdrawal at the respective premises.

The data is mainly primary data from invoices and meter readings. For offices in shared buildings or small area offices, water withdrawal was allocated according to square-meter share wherever possible. Water withdrawal for 2024 was collected for the first ten months based on direct data, while the months of November and December were estimated based on the previous year or expected values. Currently, Rieter only measures the volume of water withdrawal. In future, Rieter will focus on gathering detailed information on water usage and discharge, which will enable the Group to better assess its impact. The data is collected in the company’s SEED database.

With a waste intensity of 9.1 kg per CHF 1 000 sales, Rieter again achieved its target of 10.0 kg per CHF 1 000 sales. Lower production volumes resulted in a reduction in waste generation of 23.8 percent, reaching a total of 7 803.1 tons in 2024. This reduction primarily affects recycling waste. The decrease in the recycling rate from 91.2 percent to 83.4 percent is related to the relocation to the new Campus in Winterthur (Switzerland), as a material amount of waste was sent for incineration during the move.

Methodologies and assumptions

Hazardous waste includes all classes of waste defined as “hazardous” by local legislation, and mainly includes the disposal of sludge, chemical waste or lubrication and grease. Non-hazardous waste includes metal, plastic and other kind of waste (e.g. composting or paper waste). Recycling covers waste that has been re-entered into the process, either by creating a product of equal quality (closed loop), another product of lesser value or new raw material (open loop). Rieter differentiates between internal recycling, where waste is diverted from disposal and re-used internally, and external recycling, where waste is disposed to external recycling services providers. More than 95.0 percent of recycled waste is disposed to external recycling services providers. As a consequence, Rieter’s recycling rate includes only external recycling.

Waste was measured for owned and leased sites in line with the operational control approach. The data includes mainly primary data from invoices of waste suppliers. For offices in shared buildings or small area offices, waste was allocated according to square-meter share wherever possible. For 2024, waste was collected for the first ten months based on direct data, while the months of November and December were estimated based on previous year or expected values. The data is collected in the SEED database.