Sustainability strategy

The textile industry is one of the most resource-intensive industries and a burden on the environment. Less than one percent of textile waste is recycled into equivalent products in a closed-loop process. Spinning is just one small, high-tech step in the overall textile manufacturing process, but it plays an increasingly important role in sustainability. Rieter develops state-of-the-art technologies for yarn production. When combined with textile expertise, Rieter’s technology ensures positive effects in the spinning process that save raw materials and energy and promote the recyclability of textiles.

Rieter has been integrating Environmental, Social and Governance (ESG) issues into its corporate strategy for many years. Two dimensions are considered here: the development and provision of high-quality technology for the spinning process and the minimization of the company’s own environmental footprint.

For the spinning process, Rieter offers state-of-the-art technologies that use digitization and artificial intelligence to increase energy efficiency and optimize the use of raw materials. The company’s recycling spinning systems enable spinning mills to overcome the challenges associated with processing mechanically recycled fibers. This allows spinning mills to capitalize on the growing demand for sustainable textiles.

At the same time, the recycling systems contribute to reducing textile waste and help to further promote the circular economy. In addition to technologies, Rieter supports its customers with textile expertise in the production of innovative yarns from plant-based, recycled or chemically produced fibers.

In 2024, through the Science Based Targets initiative (SBTi), Rieter made a commitment to define, within the next two years, company-wide emission reduction targets for the year 2040, which are consistent with scientifically based net-zero goals. In this way, Rieter supports the Paris Climate Agreement. Rieter is currently working with its suppliers to identify appropriate emission reduction measures to reduce environmental impacts throughout the value chain. One component is the definition of interim targets to achieve net-zero emissions by 2040. Annual reporting on progress towards the “Planet” and “People” targets for 2025 will continue.

Focus on key sustainability issues

Rieter focuses its sustainability strategy on the key issues identified in the double materiality assessment in 2023 with the involvement of internal and external stakeholders: climate change, resource efficiency and circular economy, working conditions and social engagement, and corporate governance.

Targets for the key topics

Climate change

The company’s traditional focus on the energy efficiency of its products is also reflected in the way it deals with its ecological footprint. To address climate change, the company has set reduction targets for energy efficiency and greenhouse gas (GHG) emissions for 2025. In 2024, Rieter joined the SBTi with the aim of achieving net-zero emissions by 2040. As an interim target, the company aims to switch completely to renewable energies by 2030.

Energy efficiency is a hallmark of Rieter’s spinning systems. Rieter engineers have always attached great importance to this when developing new machines. This focus helps spinning mills reduce the environmental impact of their operations, which in turn contributes to the decarbonization of the entire textile value chain.

Rieter has set itself measurable targets for energy reduction in all spinning systems by 2025 and 2030:

Resource efficiency and circular economy

Resource efficiency and the circular economy are key issues where Rieter is able to make a big difference both in its own operations and through its products and services.

Rieter ensures that resources are used sparingly at all production sites, and strives for circular production processes in order to reuse raw materials wherever possible.

Working conditions and social engagement

Rieter strives to be an employer of choice. The new corporate strategy has placed a greater focus on this goal.

Corporate governance

Integrity and trust form the core of Rieter’s corporate culture.

Rieter strives to create a meaningful and value-oriented environment through its mission and vision. The company ensures compliance with the Code of Conduct, which is an integral part of all employment contracts. A special whistleblowing platform enables reporting of violations of statutory regulations or internal rules, such as the company’s compliance guidelines.

Sustainability disclosure

Based on the requirements of the Task Force on Climate-related Disclosures (TCFD), the company’s risk management team has conducted a comprehensive analysis of its exposure to climate-related risks. The analysis included physical risks and transition risks, taking into account various climate scenarios. Risk management processes have been refined to address these climate risks and integrated into the company’s business processes. This allows Rieter to mitigate risks and make better use of opportunities (more on TCFD here).

Governance – sustainability

The Board of Directors of Rieter Holding Ltd. defines the company’s sustainability strategy at the Group level and sets goals and priorities, while the Group Executive Committee is responsible for implementing the sustainability strategy at the operational level.

In 2024, an internal Sustainability Committee was formed, comprising leaders from the areas of supply chain, finance, legal, occupational safety and environmental protection, communications and human resources as well as sustainability. The Committee meets every two months to review the progress on sustainability initiatives. In 2024, the Committee met five times, chaired by the CEO. The finance department collects the non-financial data, thus providing the basis for transparent reporting. Product and market-related measures, such as optimizing the energy consumption of individual spinning systems, are the responsibility of the respective country organization. The Rieter subsidiaries are accountable for site-specific measures in the areas of energy, GHG emissions, waste, biodiversity and occupational safety. They are supported by technical experts at Group level.