Environment

Environmental protection is firmly anchored in all Swatch Group divisions and companies, and represents a core priority that is respected, promoted and implemented daily by every employee in the company. The Group applies this conviction along the entire value chain, from product design and production processes to the recycling of its products. The Group’s brands develop new products using recycled or recyclable, organic and compostable materials wherever possible. In order to efficiently implement the Group’s strategy for sustainable product design, it has started conducting Life Cycle Assessments (LCAs) to better identify and minimize environmental impacts.

↗ Further information on LCAs can be found on p. 32 of the Sustainability Report.

In addition, measures to reduce energy and resource consumption are being implemented, whether through manufacturing facilities with smart energy control systems or through energy-efficient, heat-insulated and eco-friendly infrastructures and production sites. To optimize ecological and energy performance, ultra-modern technologies and building materials are used for new production buildings, other buildings and renovations; this practice also led to a further improvement in the year under review.

Data acquisition is being continuously improved in terms of both the quality of collection methods and new identifiers. However, it should be noted that due to their diversity, the business entities set their own targets and measures for many key figures, which are not presented in this report in a consolidated form.

↗ Further information on data collection can be found on p. 114 of the Sustainability Report.

GRI 3-3

Energy and emissions

Production, sourcing and sales: Energy is needed to operate buildings and facilities. In addition, there are indirect emissions (Scope 3) from sources such as suppliers, transport and raw materials.

Use of products: The use of Swatch Group products is associated with very low greenhouse gas emissions.  Mechanical watches, for example, are powered by kinetic energy, while quartz watches are powered by solar cells or by batteries produced by the company’s own battery production facility, which runs on renewable electricity. 

As early as 1990, Swatch Group campaigned for a reduction of GHG emissions and lower energy consumption through its sponsorship of the solar mobile The Spirit of Biel / Bienne. The solar mobile  won the World Solar Challenge in Australia at the  time. The first solar-powered Swatch (1995) stems  from this period, and it has lost none of its appeal.  As a result, the Group’s early commitment to  protecting the climate remains an important value,  and Swatch Group remains motivated to play its part in sustainable climate action in the long term.

 

 

The Group aims to achieve the goal of climate neutrality for Scope 1 and Scope 2 by 2050. A strategy to reduce greenhouse gas emissions has been developed; the targets are reviewed regularly and, if possible, a faster reduction strategy is implemented.

In order to reduce Scope 1 emissions, targets for energy efficiency gains and GHG reductions have been set for all production units in Switzerland since 2013, and they apply generally to the entire Group on a consolidated basis. Production sites and distribution companies located outside Switzerland, in particular the many boutiques and service centers, are also working to improve their energy performance. Although the boutiques and service centers consume far less energy than the production plants in Switzerland, they are nevertheless included in the range of measures to reduce emissions and energy consumption.

To this end, a switch is being made to electric heat generation, which will reduce total energy consumption in Scopes 1 and 2 but increase electricity demand in Scope 2. As a result, Scope 2 effects will rise as the progress on decarbonization projects increases.  To reduce these, Swatch Group will:

  • Reduce equipment power consumption through optimization measures and planned shutdowns at the end of production.
  • Develop energy plans to optimize the electrical performance of the heating and cooling appliances operated with refrigerants.
  • Invest in photovoltaic installations on the roofs of Swatch Group-owned buildings.
  • Purchase electricity produced from renewable sources.

Specific reduction targets for greenhouse gas emissions in Scopes 1 and 2 have been defined for every company. The Group reviews the general progress every six months; all companies are being provided with technical support for the measures to optimize and replace the existing systems.

 

1. Avoid the use of resources that have no associated benefit.
2. Reduce energy consumption to the necessary and technically feasible minimum.
3. Efficient and effective operation of installations, as well as heat recovery.
4. Alternative to fossil-fuel energy sources, such as regenerative or zero-carbon energy sources.
5. Independent generation or conversion of energy at the sites themselves.
6. Energy storage systems and carbon offsetting projects.

 

Swatch is also committed to reducing Scope 2 emissions. The following approaches will be used to reduce Scope 2 emissions over the next few years:

  • Reducing electricity consumption; measures for higher energy efficiency.
  • Expanding internal renewable electricity generation.
  • Purchasing electricity from renewable sources.

In order to reduce Scope 1 and 2 greenhouse gas emissions to zero by 2050, each Group company defines its own specific targets and measures. Carbon offsetting is not the top priority, as Swatch Group is prioritizing the actual elimination of emissions and not offsetting projects with carbon certificates.

Experts from the Energy Management Team support the business entities with their climate efforts. In addition to carrying out more extensive assessments and projects aimed at achieving climate neutrality at specific sites, a guideline was developed containing practical tips for saving energy and a list of “Dos and Don’ts”. It suggests different ways that energy consumption can be further reduced in the short and medium term.

The latest Sustainability Report contains various suggestions for improving the carbon footprint and enables all entities to make the appropriate efforts depending on what has been achieved to date and the Group strategy.

Swiss production plant environmental program

In 2013, Swatch Group, with the support of the Energy Agency of the Swiss Private Sector (EnAW), signed a binding target agreement regarding stationary greenhouse gas emissions (Scope 1) with the Swiss Federal Office for the Environment (FOEN). All of the Group’s Swiss production facilities are bound by this agreement and implement measures to help achieve Swatch Group’s energy targets. The first agreement related to the period from 2013 to 2021 and was extended until 2024. A new target agreement with the FOEN is currently being drawn up with the support of the EnAW.