Planet

Progress 2025

After delivering consistently strong environmental performance from 2021 to 2024, Rieter closed the 2025 reporting cycle having missed four out of five intensity targets, mainly due to the sharp decline in sales during the year. On the positive side, absolute figures for energy consumption, greenhouse gas emissions (scope 1 and 2), water withdrawal and waste generation declined year-on-year, despite the additional energy consumption resulting from the integration of Prosino S.r.l. (Borgosesia, Italy) and Petit Spare Parts SAS (Aubenas, France). These subsidiaries, acquired in 2024, were included in the reporting for the first time in the year under review. Rieter made further notable progress: The share in renewable energy consumption in 2025 alone increased by 10.1 percentage points to 38.7 percent. Rieter is on track with its plan to transition to 90 percent renewable sources for purchased electricity, gas and crude oil by 2030 and the company’s continued waste management efforts helped raise the recycling rate to 84.1 percent. Reporting against the new targets begins in 2026, aligned with the latest materiality assessment.

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. One means of defining environmental priorities is Rieter's risk assessment process, as set out in its Risk Management Policy.

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. Rieter introduced a new Environmental, Health and Safety (EHS) policy in 2025, which focuses on managing environmental impacts at the site level and sets clear requirements for employees and any other individuals who work on site.

Climate action

Material impacts, risks and opportunities

The double materiality analysis identifies climate action and energy efficiency as material issues 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.

Absolute energy consumption decreased by 2.3 percent to 82 074.1 MWh, driven by targeted energy efficiency measures and initiatives derived from energy audits. This reduction came despite the first-time inclusion of the two newly acquired subsidiaries. Energy consumption intensity reached 0.120 MWh per CHF 1 000 sales, falling short of the 0.100 MWh intensity target due to the decline in sales.

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. Rieter’s company-owned sites in China, India and the Czech Republic collectively offer a total capacity of 6 100 MWh of self-generated solar energy. The increase in the share of energy consumption from renewable sources from 28.6 percent to 38.7 percent was driven by changes in procured renewable energy contracts at three European sites. Rieter is currently developing a plan to switch consumption of purchased electricity, gas and crude oil to 90 percent renewable sources by 2030.

Transition plan to climate change mitigation

Rieter is committed to minimizing its impact on the environment in line with the Paris Agreement.

Rieter began its transition plan by assessing its greenhouse gas (GHG) emissions footprint, including scope 1 (direct emissions), scope 2 (indirect emissions from purchased energy) and scope 3 (other indirect 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.

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. Scope 1 and 2 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.

Under its long-term commitment to boost energy efficiency and the use of renewable resources, Rieter reduced its market-based GHG intensity to 0.028 tCO₂e per CHF 1 000 sales, well below the target upper limit of 0.045 tCO₂e per CHF 1 000 sales.

Methodologies and assumptions

Energy data is mainly derived from utility invoices and meter readings. For offices in shared buildings or small areas, energy consumption was allocated based on an estimated share of square meters wherever possible. Energy consumption for 2025 is drawn from direct data for the first nine months, while October through December were estimated based on prior-year or projected values.

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). GHG emissions related to refrigerants were collected for the first time, resulting in an increase of overall scope 1 emissions. Scope 1 and 2 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.

None of Rieter’s scope 1 emissions were regulated in emission trading schemes. Emission factors used for scope 1 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.

Location-based scope 2 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 2025 from the Energy Institute, an organization for professionals in energy-related fields. The emission factors represent fuel mix data from 2024 published in 2025.

Market-based scope 2 emissions were calculated by each site using supplier-specific emission factors requested from the respective energy suppliers. If a supplier did not provide specific emission factors, the location-based factor referenced above was applied. The most recent emission factor data available was from 2024.

GHG emissions from the use of sold products (category 11) have by far the greatest impact on Rieter’s GHG footprint – over 95 percent – and are attributable to the Machines & Systems Division. Emissions in this category were calculated based on the annual energy consumption of different machine types (ring spinning, air-jet spinning machines etc.), an expected useful life of 15 years, and an average global emission factor.

Scope 3 GHG emissions from upstream activities (categories 1, 2, 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. In 2025, Rieter further refined its scope 3 emissions calculation methodology, particularly in relation to logistics and distribution. For categories 4 and 9, Rieter transitioned from a spend-based to a supplier-specific emission calculation approach by collecting and incorporating emissions data directly provided by suppliers.

All categories not listed in the table on GHG emissions are expected to be less significant.

With a NO_x and SO₂ intensity of 0.0136 kg per CHF 1 000 sales, Rieter missed its target of 0.0100 kg per CHF 1 000 sales.

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

Two key factors in resource efficiency are water reduction and waste avoidance. While water is a critical resource globally, it is of limited relevance in the company’s operations and in the spinning process overall. As such, the latest materiality assessment does not identify water as a topic of high relevance, and reporting on this topic will cease after 2025. Nonetheless, Rieter remains committed to the responsible use of water throughout its operations.

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

Due to low sales volumes in the year under review, Rieter’s water withdrawal intensity amounted to 0.304 m³ per CHF 1 000 sales, falling short of its target of 0.275 m³ per CHF 1 000 sales for the first time. In absolute terms, however, the company succeeded in reducing its water withdrawal for the year to 208 193.4 m³. Close collaboration with local water utilities also saw a large proportion of groundwater sources reclassified as surface water. This change explains the noticeable shift in categorization of water sources in the 2025 data.

Methodologies and assumptions

Groundwater withdrawal includes water that is purchased from local authorities and stored in their reservoirs. In contrast, surface water is drawn from rivers or lakes near Rieter sites. Before entering a Rieter site, the withdrawn groundwater is treated at sewage plants operated by local authorities. Water withdrawal was measured for owned and leased sites in line with the operational control approach. The data is mainly sourced from invoices and meter readings. For offices in shared buildings or small areas, water withdrawal was allocated based on an estimated share of square meters wherever possible. Water withdrawal for 2025 is drawn from direct data for the first nine months, with October to December estimated based on prior-year or projected values.

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.

In 2025, Rieter generated a total of 7 701.4 tons of waste directed to disposal, a slight reduction compared to the previous year, despite the first-time inclusion of the two newly acquired subsidiaries. However, the waste intensity of 11.2 kg per CHF 1 000 sales fell short of the target of 10.0 kg per CHF 1 000 sales, which was once again primarily attributable to lower sales volumes.

The recycling rate increased by 0.7 percentage points year-on-year to 84.1 percent, driven by Rieter’s ongoing commitment to improving recycling practices.

Methodologies and assumptions

Hazardous waste includes all classes of waste defined as “hazardous” by local legislation, and mainly includes the disposal of sludge, electronic and chemical waste, lubrication and grease. Non-hazardous waste includes metal, plastic and other kinds 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 a 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 are mainly primary data sourced from invoices of waste suppliers. For offices in shared buildings or small areas, waste was allocated based on an estimated share of square meters wherever possible. For 2025, waste was collected for the first nine months based on direct data, while October through December were estimated based on prior-year or projected values.