Schöck AG 2022 Sustainability Report
Thomas Stürzl (left), Mike Bucher (middle), Dr. Harald Braasch (right)
Dear Readers, We are delighted to present the first Schöck sustainability report to you today. Since the company was founded Schöck has always been concerned about sustainability. Years ago, with the writing of our Strategy 2025, we defined our already clear goals for the first time. We were aware that with the increasing size of the company, this was the only way to establish our attitude, we had developed over a long period of time For us, sustainability means first and foremost safeguarding the future. As an innovative family-owned company, we are committed to protecting and preserving life and the environment in the long term, and put this before short-term profit-seeking. Not only doing what pays off immediately in the here and now, but looking ahead and breaking new ground . We see sustainability as an opportunity to constantly develop and positively play our part in creating the conditions actively under which we want to live and work tomorrow. We cordially invite you to use this report to get an own idea of the extent to which we are already living up to these expectations today. We hope you will find inspiration here, and also specific answers to your questions. Above all, we hope that you will be able to identify with the ideas and approaches in this report and feel more closely linked to us as a result. Only this way can sustainability succeed as a joint project. Dr. Harald Braasch Chief Technical Officer Mike Bucher Chief Executive Officer Thomas Stürzl Chief Commercial Officer 3 Schöck Sustainability Report 2022
Not just right, but really good. 4
The Schöck sustainability mission statement. When we decide to get something done at Schöck, we make sure we do it properly. This has been the attitude at our company ever since Eberhard Schöck gathered his powerful "Schöck Bautrupp" (building crew) around him: People who wanted to make a difference and who had a vision of better building which has become reality thanks to their courageous work. That’s still the way we approach things even today. We explore, optimise and perfect until we are 100% satisfied with the result. If something is good, we want to make it better. We don't leave any stone unturned. We don't want to just do a job, we want to set an example. And it’s with this inexhaustible drive that we are also tackling the issue of sustainability in the company. Everything we already do today to protect the climate, conserve our resources or create personal and professional opportunities for employees: We see this as just the beginning of so many things, we still can do. What interests us is the abundance of possibilities, and not the minimum of effort. Simply ticking off lists of standards and doing only what is necessary is not our way of approaching things. We fill sustainability with new life every day. Out of our inner conviction and with an attractive goal in mind: to make the place where we will all live – namely the future – a place where we and all future generations like to live. Let's get started. Preferably right now. 5 Schöck Sustainability Report 2022
Company 8 Schöck AG. 8 Acting responsibly. 10 Organisation, products, markets and customers. 12 Independence meets responsibility. 14 The company in figures. 16 Special solutions for high efficiency. 18 A focus on regional suppliers. 19 Building the future together. 20 Quality, proof in black and white. 21 Sustainability management 22 Sustainability management. 22 Sustainability strategy. 24 Climate neutrality. 26 Resource management. 26 Goal oriented competence development. 27 Fields of activity and sustainability goals. 28 Materiality analysis. 30 Stakeholders. 32 Value chain. 34 Process management. 36 Rules and processes. 38 Monitoring of sustainability. 39 Incentive systems. 39 "Sustainability is in Schöck's DNA." 40 Content 6
Fields of activity 42 Environmental efficiency. 42 Constructive cooperation. 44 Reducing the volume of waste. 45 Resource-saving production. 49 Climate protection. 50 Climate protection. The ultimate benchmark. 52 Achieving more with less. 54 Sleeves up for the climate. 56 Product responsibility. 58 Developed for the future. 60 Sustainability in the innovation process. 61 The ecological dimension of the products. 63 Comprehensive quality assurance. 66 Sustainable supply chains. 68 Proximity creates trust. 70 Cooperation based on binding principles. 72 Employment. 74 Leading by example. 76 Dialogue and co-determination at Schöck. 77 Safety in the workplace. 80 Diversity and equal opportunity. 82 Remuneration and pensions. 83 Work-life balance. 84 Corporate values. 85 Employee development. 86 Strengthening strengths to secure the future. 88 Corporate governance. 94 Being a role model, in word and deed. 96 Compliance guidelines at Schöck. 100 GRI Content Index 102 GRI Content Index 102 7 Schöck Sustainability Report 2022
Schöck AG. Shaping tomorrow's construction today. Architecture office, Stutensee, DE Company Sustainability management Fields of activity GRI content index 8
Ever since the founding of the company, the idea of Schöck has been to rationalise construction and enable high efficiency in terms of costs and energy. To achive this Schöck has repeatedly questioned the existing and driven forward technological innovations.. This is also expressed in our vision: Shaping tomorrow's construction today. A glance at the portfolio shows that Schöck is standing for integrated solutions for thermal insulation, impact sound insulation and reinforcement technology. With its durable, high-quality products, Schöck is now a familiar name on building sites all over the world. Digital components that make work easier for customers and partners, by supporting construction planning or enabling precise calculations of benefits, are also increasingly coming into focus. The product that justifies Schöck's success like no other is the Isokorb®. It contributes permanently improving the energy efficiency of buildings by maximising the insulation of the building envelope and closing weak points in the building: Thermal bridges at cantilevered structural parts such as balconies can be minimised with Schöck Isokorb®. The topic of "sustainability" is thus credibly anchored at the heart of Schöck product development. As an experienced partner in construction, Schöck not only offers outstanding quality by continuously optimising its product portfolio, it also provides a reliable, technically versed service that responds to the individual needs of the customer. Eberhard Schöck, founder of the company “If you want to be successful, you have to develop entirely new things or improving existing things.” 9 Schöck Sustainability Report 2022
Commitment In the construction industry, Schöck aims to convince through a high level of commitment to statements, agreements and goals. This applies to delivery capability, delivery reliability as well as to product quality or technical solutions. The claim “Dependable by design” outwardly demonstrates our commitment to reliability. It is a promise on which Schöck is willing to stake its reputation. Focus on the people The culture at Schöck has always been characterised by a strong focus on people – whether customers, business partners or employees – thanks to the company's founder, Eberhard Schöck. People are the basis for success. They shape the company in all its relationships. Acting responsibly. Values as the basis for growth and success When the company was founded, Eberhard Schöck established a culture whose values still provide orientation today. Because for all his enthusiasm for technology and innovation, the interpersonal aspect was always crucial for the civil engineer. With his passion, inventiveness and ability to convince others of his ideas, he gathered the "Schöck Bautrupp" around him in the sixties. And even todaythis cooperation based on mutual trust is still the basis for success. 10 Company Sustainability management Fields of activity GRI content index
Openness Both inside and outside the company, Schöck engages with people in an atmosphere of respectful cooperation and vehemently opposes discrimination on the grounds of ethnic origin, gender, religion, disability, age or sexual identity. Only the ability to perform the respective roles counts, and is the focus – independent of all external appearances of the persons. Focus By concentrating on the development of insulation and load-bearing solutions, Schöck has become a leading niche supplier. This comes from the expectation that it should always be an expert with a high level of specialist knowledge who delivers a comprehensive service to its customers in the respective area. With the continued focus of the corporate strategy on innovations, internationalisation and digitalisation, this strength is being continuously expanded. Trust Schöck strives for a long-term, lasting relationship with all its stakeholders, which is characterised by an open and appreciative culture of discussion. Employees in particular are given a high degree of trust to work independently. As a family-owned company, Schöck is convinced that an active partnership based on trust is the key to sustainable and reliable processes. The Schöck Code of Conduct Schöck corporate guidelines Ambitiousness for the cause, ethical integrity in our dealings with one another. That is Schöck. With top technical and technological solutions, Schöck strives for market leadership and at the same time wants to create an environment in which employees, customers and suppliers meet one another fairly, on an equal footing and with respect. We have set out exactly what this means in the national rules and globally applicable standards of the Schöck Code of Conduct. 11 Schöck Sustainability Report 2022
Belvedère, Hilversum, NL Organisation, products, markets and customers. Reliable force. For more than 60 years. Company Sustainability management Fields of activity GRI content index 12
As a world leading manufacturer, Schöck focuses on technologies that provide a load-bearing function, a high structural and physical benefit and thus help to meet the complex requirements of modern construction – also in the context of sustainability. With innovative developments, Schöck has repeatedly set standards in construction since the company was founded more than 60 years ago. The aim has always been to enable high construction quality for sustainable buildings and also to rationalise building processes and make them cost-effective. Schöck Sustainability Report 2022 13
Independence meets responsibility. Organisational structure Schöck understands itself as a family-owned company. Independence has a high value. This is ensured by the fact that a large part of the company is still owned by the founding family even today. The Schöckfoundations also play their part in organisational independence and social awareness. Shareholder structure of Schöck AG. A solid foundation. Eberhard-Schöck-Stiftung 45,4 % Others 5,4 % Schöck family 29,2 % Schöck-Familien-Stiftung gGmbH 20,0 % 14 Company Sustainability management Fields of activity GRI content index
Supervisory Board The Supervisory Board of Schöck AG includes two members of the Schöck family. The Supervisory Board (from left to right): Alfons Hörmann (Vice Chairman), Dr. Christof Maisch, Sabine Wagner, Felicitas Schöck, Wolfgang Prüße, Nikolaus Wild (Chairman), Robin Schöck. Board of Management As CEO Mike Bucher (middle) is responsible for management of Schöck Group and its sales division. He is supported by Chief Technical Officer Dr. Harald Braasch (right) and Chief Financial Officer Thomas Stürzl (left). Together they ensure the successful combination of flexibility and continuity. 15 Schöck Sustainability Report 2022
Production sites As a globally active company with around 1,100 employees supplying more than 40 markets, Schöck sets standards in the construction industry and also assumes a pioneering role in the relevant topics of digitalisation and sustainability. The high-quality Schöck products for insulation and load-bearing applications in buildings are today manufactured at six production sites in four European countries. A further production site in the USA is currently being established. Focussing the expertise of dedicated people ensures continuous development of innovative technologies and service on an equal footing. 1,064 employees Record sales were achieved in the 2022 financial year, an increase of 10.2 percent compared to the previous year. € 259 m turnover The Schöck headquarters is in Baden-Baden, Germany. Production takes place at a total of seven locations in five countries: Germany, Austria, Poland, Hungary and the United States. The products are marketed by the individual Schöck companies, with a focus on Europe, Asia and North America. In addition, Schöck solutions are distributed by sales partners around the world, supported worldwide by the New Markets team. The core business is supported by participations and opens up growth opportunities through the strategic fields of innovation and digitalisation (generic.de software technologies AG, beamionic GmbH, Robotic Eyes GmbH). 40 markets 7 The company figures. 16 Company Sustainability management Fields of activity GRI content index
Baden-Baden (headquarters) Germany Tychy plant Poland Essen plant Germany Pilis plant Hungary Halle plant Germany Bordentown plant USA Pucking plant Austria Production sites worldwide 17 Schöck Sustainability Report 2022
Special solutions for high efficiency. The Schöck product portfolio Schöck is a specialist in the field of construction, providing full-fledged-products and solutions for thermal insulation, impact sound insulation and reinforcement technology. Thermal insulation Climate protection and sustainability are becoming increasingly important for the construction industry. Improving the insulation properties is one means of meeting even the most strict energy efficiency requirements. Our portfolio of fully-fledged products puts us in an excellent position to do so. Impact sound insulation Silence is a basic need, particularly within your own four walls. However, this can quickly be disrupted by noise from neighbouring rooms or the stair enclosure. One of the causes is impact sound. Here too, Schöck offers pioneering solutions to improve living comfort. Reinforcement technology Concrete is an indispensable building material in the modern world. In addition to its extraordinary durability, concrete can be flexibly formed and has a very high compression strength. One weakness of this material, however, is its tensile strength. This is where reinforcement technology solutions come in. Product portfolio Schöck Isokorb® For preventing thermal bridges on cantilevered structural components. Schöck Sconnex® For preventing thermal bridges at walls and columns. Schöck Tronsole® The complete system for impact sound insulation across all trades. Schöck Isolink® The thermally insulating façade fastener. Schöck Stacon® The reinforcement for the transfer of shear forces in expansion joints. Schöck Bole® The punching shear reinforcement for industrial or commercial buildings. Schöck Combar® The corrosion-resistant glass fibre reinforcement for concrete. Schöck Signo® The concrete formwork for the perfect frame. 18 Company Sustainability management Fields of activity GRI content index
Focus on regional suppliers. Proximity after all creates trust It is not only innovative, durable products that underline Schöck's pioneering role. Actively supporting our customers in all phases of construction has also helped us make a name for ourselves as a reliable partner worldwide. Uncompromising quality is the basis for this. It starts with the choice of raw materials and preliminary products. Whenever possible, Schöck uses regional suppliers at its locations. This shortens delivery routes – a desirable effect in the context of sustainability. All the materials used in our products must meet the highest quality standards in accordance with the building supervisory approvals for the relevant country. Villa Neo, Hamburg, DE Schöck Sustainability Report 2022 19
Building the future together. The customer spectrum Schöck supports many different customer groups along the entire value chain, whether new-build or renovation project. It starts with the design and planning of the buildings (architects), calculation of technical details (structural engineers), invitation to tender (architects), the order (specialist building product retailers) and ends with the installation of the products when roughing out (construction companies) as well as in precast concrete products (precasters). At each phase, Schöck maintains contact with the customer, provides advice and offers comprehensive know-how through trainings. Furthermore, Schöck focuses on the dynamics of digitalisation in addition to innovative product solutions. Schöck accompanies and shapes the digital transformation of the construction industry: with forward-looking solutions and comprehensive expertise. Just as expected from the market leader. Responsibility for the environment, society and employees was already anchored in the corporate guidelines of 1985 and has been further developed to this day, for example by the Code of Conduct. This commitment is also reflected in following memberships: 2017 Member of Institut Bauen und Umwelt e.V. 2016 Admission to network of Klimaschutz-Unternehmen e.V. following an audit by the Federal Ministry of Education and Research 2013 Member of the Energie-Effizienz-Tisch, BadenBaden 2008 Member of the DGNB 20 Company Sustainability management Fields of activity GRI content index
Certifications/awards Schöck achieves and supports its sustainability goals in terms of quality, process optimization and customer orientation on the basis of various certifications. The following standards already apply at Schöck today: Schöck also looks for benchmarks for its own standards in relation to other companies or industries . This includes participation in awards for innovation management, e.g. "Top 100" or "German Innovation Award". For customer orientation with architects Schöck regularly faces the top-class jury of "architects darling". Environment management in accordance with ISO 14001 In the sense of an integrated environmental strategy, emissions, waste and waste water are reduced and environmentally conscious behaviour is systematically promoted. For this reason, Schöck's environmental management is certified in accordance with ISO 14001. Environmental aspects are taken into account as early as the product development phase. This includes a conscious use of materials and consumables and also orienting productiontowards sustainability. The environmental compatibility of the products throughout their entire life cycle is always considered. Energy management in accordance with ISO 50001 Schöck's energy management system forms the basis for efficient energy use. This is certified in accordance with ISO 50001, based on environmental and energy-related principles. The energy management system helps Schöck reduce its energy consumption, and hence also its energy costs. The certified energy management system provides information on which measures can be used to save energy. The certification obliges Schöck to conduct regular audits and to review implemented energy-saving measures as well as the energy management system itself. Occupational health and safety in accordance with ISO 45001 Schöck systematically invests in the occupational health and safety of its employees. Top priority is always given to preventing injuries and illnesses. The implemented occupational health and safety management system (OH&S) serves to prevent work-related injuries and illnesses as well as to generally protect the health of employees in the workplace. Various guidelines and standards contain specifications for this system and have been certified by the DEKRA Certification GmbH. The certification attests that the organisation has implemented and maintains a management system for occupational safety and health in accordance with the ISO 45001 standard (formerly BS OHSAS 18001). The certified areas concern the development, production and distribution of reinforcement products for construction as well as application technology consulting. The plants in Baden-Baden, Essen and Landsberg near Halle in Germany and Tychy in Poland were certified. Quality, proof in black and white. 21 Schöck Sustainability Report 2022
Sustainability management A clear plan for shaping tomorrow. Hörnlihütte, Zermatt, Switzerland Company Sustainability management Fields of activity GRI content index 22
Not only economically productive, but also socially relevant at all times: That always was and still is important to us. That is why we regularly review our strategic orientation and adapt it to new developments. The issue of sustainability has also played a key role for years. Consequently, this is also reflected in the Schöck Agenda 2025. As part of our own sustainability strategy, we have defined areas in which we see our existing strengths and future potentials and also compare these with the official standards, such as the Sustainable Development Goals of the United Nations or the German Sustainability Code, in order to offer more transparency. At the same time, we are establishing a viable internal sustainability organisation. We are developing a structured process management with clear goals, indicators and responsibilities in order to put all the tasks we have set ourselves into practice across all our divisions. Schöck Sustainability Report 2022 23
Sustainability strategy Anchored in the corporate strategy. 24 Company Sustainability management Fields of activity GRI content index
Sustainability as part of the Schöck Agenda 2025 Sustainability has not always borne this name at Schöck, but many aspects of sustainable action have been part of the corporate culture for decades, as already outlined in the chapter on the company. Sustainability has been systematically developed at Schöck for around 10 years and has so far been clearly manifested in product development from the point of view of energy efficiency, in the environmentally friendly expansion of the sites and in the creation of a safe, equal-opportunity working environment with individual development opportunities for all employees. The complex of sustainability was explicitly addressed for the first time in the "Agenda 2025" back in 2021. Three overarching areas in which Schöck concentrates its sustainability activities were identified in this context: Resource management Target-oriented competence development Climate neutrality 25 Schöck Sustainability Report 2022
Climate neutrality. Resource management. The board resolution on climate neutrality from the previous project reads: Dr. Harald Braasch, Chief Technical Officer “Germany aims to stop emitting greenhouse gases by 2050. In the first step, emissions must be reduced by around 60% by 2030. Schöck aims to get there faster. The goal is to be climate-neutral by 2025. We are currently working out a detailed roadmap for this.” "Resource management” is the umbrella term used at Schöck to describe the financial and human resources required to achieve climate neutrality. In an agile process, these are continuously reviewed and adapted in order to be able to react flexibly to changes. 26 Company Sustainability management Fields of activity GRI content index
Goal oriented competence development. Sustainable development can only be achieved if the employees are trained and educated accordingly. The following perspective was developed for this: Based on the requirements of the Strategy 2025, we focus on the further development of our employees with an eye to the future within the framework of strategic human resources planning. Our fields of activity are focused on • Managers development • Competence development • Staff recruitment Management development means successfully shaping the ongoing further development of leadership competencies and change processes. At the same time, the competencies of the employees must be systematically developed, both professionally and methodologically, in order to meet existing and future requirements. By establishing new training opportunities and expanding our existing recruitment channels, also on an international scale, we aim to recruit specialists with know-how that is important for the future. With various measures that fall under these fields of activity, we support the implementation of the requirements from the Strategy 2025 on the HR side. Susanne Grande Head of Human Resources 27 Schöck Sustainability Report 2022
Fields of activity and sustainability goals. Achieving more with a clear focus The range of issues and structure of Schöck's sustainability strategy are essentially based on recognised frameworks such as the German Sustainability Code (DNK) and the performance indicators of the Global Reporting Initiative (GRI). Over the past 10 years, Schöck has successfully introduced and certified the following management systems which provide a binding framework for measures in key areas associated with sustainability: • 2013: Environmental management system ISO 14001 • 2014: Occupational health and safety management system ISO 45001 • 2014: Energy management system ISO 50001 In addition, Schöck has been a member of "Klimaschutzunternehmen e.V.", a voluntary network of well-known German companies that play a model role in issues such as climate protection or energy efficiency and share their experience in the network, since 2016. The above-average performance of the association members is verified by external experts during a stringent admission procedure. Company Sustainability management Fields of activity GRI content index 28
Liability through clear defined goals The Schöck sustainability strategy includes a total of seven fields of activity. Specific sustainability goals that are clearly related to the UN's Sustainable Development Goals (SDGs) are assigned to each field of activity. Performance indicators have been developed for each field, which make progress measurable and thus also transparent and verifiable. Details of the performance indicators are provided in the chapters dedicated to the individual fields of activity. The following table provides an overview of the fields of activity and the sustainability goals: • Reduction of relative energy consumption • Reduction of our own emissions • Reduction of emissions from purchased goods and services Climate protection • Superior quality • Provision of products that meet the highest energy efficiency standards Product responsibility • Compliance with environmental legislation and international labour standards Sustainable supply chains • Continuous and requirement-based further training and qualification Employee development • No violation of employee and co-determination rights • Avoidance of injuries and illnesses in the workplace • Work satisfaction • Equal opportunities without discrimination Employment • Fair remuneration • Promotion of employee health • Corporate values • Family friendliness and worklife balance • Compliance with all laws • No corruption • Social engagement Corporate governance 29 Schöck Sustainability Report 2022 • Waste reduction • Safe disposal methods • Resource-saving production • Use of renewable and recycled materials Environmental efficiency
Materiality analysis. The following aspects influence the business activities of Schöck Building industry Schöck's business performance is dependent on the building industry worldwide, in particular on developments in residential construction, mainly multi-family house construction. Due to supply bottlenecks, the previously important building permits have been replaced by the start and completion of the respective building projects. Rising building costs According to the Federal Statistical Office, the cost of a conventionally constructed new residential building rose in November 2021 by 14.4% compared with the same month in the previous year. Schöck also felt the price trend for primary materials such as reinforcing steel, whose prices rose by 53% in 2021. The increase in the price of primary materials has forced Schöck to adjust its material cost surcharges and pass them on to the customers. Energy and electricity prices The energy-intensive manufacturing of Schöck products at six different locations was affected by the steady rise in prices for electricity and gas in 2021. Here, prices rose by over 10 eurocents per kWh during the year under review. Gas prices also doubled. Schöck influences the following aspects of sustainability with its business activities There is a continuing need for housing worldwide due to population growth and the migration of refugees. This requires large quantities of raw materials such as cement, steel, gravel, sand or gypsum. Their extraction is very energy-intensive and generates considerable amounts of greenhouse gases. According to the 2020 UN GLOBAL STATUS REPORT FOR BUILDINGS AND CONSTRUCTION, this accounts for 38%. In addition, however, the building industry is also a special driver of the economy and a crucial factor for economic growth, especially in residential construction. Successful companies such as Schöck generate economic added value from this, which enables them to meet their responsibilities towards their employees and to make investments that generate income and wealth elsewhere. Risks and opportunities The materiality analysis is also based on a risk analysis. The results obtained were incorporated into the materiality assessment of the individual sustainability topics. The following challenges were identified in this context: Energy and fuel prices, raw material prices, circular economy in the building industry, scarce resources and supply bottlenecks, sustainable materials, climate neutrality, legal obligations in the area of sustainability, shortage of skilled workers, employee attractiveness and the growth of the organisation. 30 Company Sustainability management Fields of activity GRI content index
The following opportunities for Schöck were identified: Strengthening the market position as a sustainable supplier of products to increase the energy efficiency of buildings, increasing the attractiveness for professionals with a high awareness of sustainability, reducing the cost of fossil fuels, anticipating regulatory requirements such as the implementation of the Corporate Sustainability Reporting Directive. The selection process of relevant core topics Schöck's sustainability strategy is derived from the results of the preceding materiality analysis. Here, a total of 40 sustainability topics were considered in relation to Schöck's business activities and analysed from the following three perspectives: Relevance for the company Relevance for the environment and society Relevance for the company's important stakeholders The following aspects were taken into consideration in the materiality analysis: Ecological aspects With a comprehensive product portfolio for increasing the energy efficiency of buildings, Schöck makes an active contribution to climate protection with its business activities. This is achieved by minimising thermal bridges at cantilevered structural components such as balconies or canopies, at the base of walls, within façade fasteners and, in future, also at columns and walls. Furthermore, CO2 emissions are being continuously reduced at the production sites and monitored via a monitoring system in the German plants. Socio-economic aspects Safety during installation and in the use of the products is also part of Schöck's sphere of responsibility. The highest material quality, installation aids and increased safety standards for simple and proper implementation of the products for high structural safety in the buildings have top priority. Special political and legal aspects Standards and regulations in Germany and Europe create a clear framework for Schöck, particularly in terms of thermal insulation. Schöck products meet the requirements for thermal insulation in accordance with DIN 4108 and the German Building Energy Act (GEG) with its possibilities for thermal bridge verification, as well as in accordance with ISO 10211, which specifies in detail the handling of thermal bridges up to the high requirements of the passive house standard. A particularly high priority was given to the following sustainability topics: Product responsibility Material/resources Emissions Leadership skills Compliance Occupational health and safety Employee rights Working conditions Education and training 31 Schöck Sustainability Report 2022
Stakeholders. Stakeholder groups and dialogue routes Continuous dialogue with internal and external stakeholders is an important basis for implementation of the sustainability strategy. For each sustainability topic, Schöck has analysed whether central stakeholders are associated with it, what wishes and expectations are linked to the topic and its significance for the respective stakeholder group. The stakeholder interests were not identified by means of a selective survey, and instead reflects the wealth of experience from many years of active exchange. Results from past surveys were also included in the analysis. Overview of stakeholders The following list shows the most important concerns of the stakeholders. It also specifies the dialogue channels with each stakeholder group. 32 Company Sustainability management Fields of activity GRI content index
Internal stakeholders Employees Description: Employees at the Baden-Baden headquarters, in all plants and at all sales offices worldwide. Concerns: Safety at the workplace, further development opportunities, fair remuneration, equipment at the workplace, collegial work relationships. Dialogue platforms: Intranet, appraisal interviews, employee events, works meetings, employee app. Supervisory Board Description: Committee with representatives of the family, employees, experts and trusted family associates. Concerns: Representation of the owners, sustainable and profitable business development, strategic corporate governance, compliance with laws and guidelines. Dialogue platforms: meetings of the Supervisory Board. Owners Description: Schöck family, Eberhard Schöck Foundation, Schöck Family Foundation. Concerns: Environmental protection, saving energy, equal treatment and appreciation for employees, annual general meeting. Dialogue platforms: Coordination meetings with the Executive Board. External stakeholders Planning clients Description: Architects, structural engineers, building physicists, façade planners in pre-sales and tendering. Concerns: High product quality, reducing planning workload, technical safety, availability. Dialogue platforms: Printed and digital media, e.g. Schöck website, social media channels, brochures, price lists, newsletters and much more. Also trade fairs, seminars, webinars, one-to-one exchange. Buying customers Description: Special building material trade, precasting plants, building companies, façade engineers involved in direct purchasing and fabrication. Concerns: Easy installation, dependability, delivery reliability, punctuality. Dialogue platforms: Printed and digital media, e.g. Schöck website, social media channels, brochures, price lists, newsletters and much more. Also trade fairs, seminars, webinars, one-to-one exchange. Suppliers & banks Description: Suppliers of key materials and building materials such as steel, stainless steel, plastic parts, glass fibres, cement, Sparkasse Bühl house bank. Concerns: Punctual payment, good credit rating, reliability, transparency, loyalty. Dialogue platforms: Supplier meetings, framework agreements with suppliers, bank meetings. Associations Description: Chambers of trade and industry, business associations, professional associations, , construction associations. Concerns: Pursuit of common interests, e.g. fighting against the shrinking of skilled workers, promoting construction-related innovations. Dialogue platforms: General member meetings, participation in expert committees. Regional environment Description: City of Baden-Baden, Baden-Baden Rebland, Municipality of Sinzheim, City of Bühl, City of Essen, City of Halle, associations, social institutions. Concerns: Commitment to the well-being of the city and the region, maintaining the economic strength of the location, social support, promotion of culture. Dialogue platforms: Personal contact with the senior mayor, mayor, local principals, support of municipal projects, fund-raising campaigns, sponsoring. 33 Schöck Sustainability Report 2022
Value chain. Responsibility throughout the product life cycle With measures along the entire value chain, Schöck assumes responsibility and increases sustainability in many dimensions: On the transport routes: Preference for regional suppliers, wherever possible. During the lifecycle: Sustainable safety through high durability throughout thelifecycle of the products. In the application: Supporting occupational safety through user-friendly, safe installation on the construction site. In production: e.g. by increasing energy efficiency, innovations in the materials and processes used, reduction of packaging material. 34 Company Sustainability management Fields of activity GRI content index
The diagram below illustrates the stages of the value chain of Schöck's main product: Isokorb®. Logistics Research & Development HR Management Finance & Controlling IT & Organisation Marketing Primary material Supporting the circular economy Continuous improvement, resource conservation Compliance with standards, ordinances, regulations Ensuring energy efficiency, quality, statics, durability Production Finished product Service Existing buildings Recycling Use Consulting, training, certification, digital tools, documentation Thermal insulation, impact sound insulation, reinforcement technology Welding, bending, gluing, casting Reinforcing steel, stainless steel, plastics, cement Waste in production, demolition Single-family houses, multi-family houses, industry, infrastructure Installation in the shell of the building, in precast concrete products in new buildings, renovation 35 Schöck Sustainability Report 2022
Process management Persons and responsibilities. Finance Human resources Strategic purchasing Marketing Product management Research & Development Quality management Plant management Production planning 36 Company Sustainability management Fields of activity GRI content index
Each to the best of their ability. Moving forward together. At Schöck, sustainability is anchored in all levels of the company to ensure effective control and implementation of strategies and measures. The Executive Board of Schöck AG, consisting of Mike Bucher (CEO and Sales), Thomas Stürzl (Chief Commercial Officer) and Dr. Harald Braasch (Chief Technical Officer), is responsible for the connectivity to the corporate strategy and the success of the sustainability strategy. The department, division and plant managers are responsible for successful implementation of the measures which are coordinated by a sustainability manager. In addition, employees in all departments are encouraged to make suggestions for increasing sustainability in their daily work, because they above all others know the potentials from their daily work environment. The sustainability management function includes the following tasks: Elaboration & further development of the sustainability strategy Communication of sustainability goals to plants & divisions Organisation of meetings for implementation of measures & review Reporting to the Executive Board (twice a year) Management & implementation of communication (internal, external) Preparation of sustainability reports 37 Schöck Sustainability Report 2022
Rules and processes. Reaching the goal systematically The development of a sustainability organisation at Schöck is in full swing. In 2022, a sustainability strategy that is compatible with the corporate strategy was developed on the basis of analyses, interviews, workshops and questionnaires. In addition to the development of the actual sustainability aspects, proposals for a mission statement, communication and organisation were also derived. The concept was further refined during the year in line with the requirements of the Executive Board. A basis for this already exists and will be further expanded and documented in 2023 to serve as a prerequisite for effective sustainability management. All departments involved will be given time to align their own area with the new requirements and to define suitable measures. Schöck's sustainability manager is in close contact with the specialist departments in order to evaluate the practicability of the sustainability strategy. He meets regularly with the Executive Board and reports on the implementation of the sustainability strategy in the company. From 2024, the Schöck Executive Board will define the focus topics and objectives of the sustainability strategy once a year. The division managers, plant managers, heads of the specialist departments and the sustainability manager will provide the Executive Board with advice and support. The departments are given a great scope for action in the choice of measures. Every six months, an interim status is determined and presented to the Executive Board so that adjustments can be made in good time. At the end of the year, the sustainability manager reports to the Executive Board on the status of implementation, development of the performance indicators and the degree of target fulfilment in the departments involved. The internal and external sustainability communication is already being implemented through the marketing today. Reports on successfully implemented sustainability measures are continuously provided during the year. After the end of a reporting period, the marketing prepares and publishes a sustainability report. 38 Company Sustainability management Fields of activity GRI content index
Monitoring of sustainability. Incentive systems. Performance indicators and other parameters In the first phase of the sustainability strategy, Schöck's sustainability goals are open and unquantifiable, and are defined in only general terms. This is intended to give the specialist departments a scope to develop and implement the measures with metrics. In order to monitor the impact of the sustainability strategy at operational level, each sustainability goal is accompanied by one or more performance indicators. The gradual improvement in these performance indicators is a guarantee for Schöck that the company is on the right track in terms of sustainable development. The performance indicators of Schöck's sustainability strategy are predominantly based on performance indicators of the Global Reporting Initiative (GRI). They are put into practice in accordance with the specifications of the respective GRI standard. In addition, established indicators from quality and human resources management are used. The specific performance indicators are presented in this sustainability report in the context of the relevant field of activity. Stronger link to sustainability goals Systems for participation in the company's success are already in place for all employees, but are not linked to sustainability goals. Schöck is currently working on establishing a stronger link here. The prerequisite for this is to make the sustainability goals measurable using objective parameters. 39 Schöck Sustainability Report 2022
"Sustainability is in Schöck's DNA." An interview with Mike Bucher CEO of the Schöck AG Mr. Bucher, why is sustainability so important in the building industry? The building industry is a strong sector in Germany, so we are inevitably the focus of public interest when it comes to achieving climate neutrality by 2045. But it has to be said that not all players in the building industry work in a resource-intensive way to the same extent; in terms of CO2 emissions, Schöck tends to produce less. But there is of course room for improvement. We can consider it a positive aspect that several Schöck products actively support sustainability in the usage phase of a building. The Isokorb®, for example, is a product for thermal insulation and helps to save energy over the entire life cycle of a building. Sustainability includes economic, ecological and social aspects. Where are Schöck's strengths, and where do the challenges lie? We have to be a role model in every respect if we want to live sustainability in accordance with our own aspirations. The economic aspect, optimum resource efficiency, is already self-evident for economic reasons. The social aspect, employee welfare and social responsibility, is naturally a high priority for us as a family-owned company, especially since two thirds of our shares are held by foundations of the founding family. In the field of ecology, we are currently taking big steps forward. We expect to achieve the target of climate neutrality by 2025 sooner than that. Investing in our own projects instead of financing foreign green projects and not just blindly trading in CO2 emissions deals is our way of ensuring high quality standards. The large-scale photovoltaic plant in Spain can be seen as a flagship project here; it is expected to be completed and put into operation this year. Internationalisation also poses a challenge. Here it is our task to harmonise value orientation and growth. What about sustainability in the supply chain? This is where suppliers are under increasing pressure. That is good, because pressure gener40 Company Sustainability management Fields of activity GRI content index
"Diversity inspires innovation." ates creativity. And quality. If we have a choice between two suppliers and one offer stands out due to superior sustainability parameters, then we choose that offer. A few years ago, this was not such a big issue. Today it is different. Let's talk about modern workplace models and diversity. What does Schöck have to offer here? We live diversity where we can, because diversity inspires innovation. People of many nationalities and cultures with different backgrounds and mindsets work for us. That is particularly important in a segment as specialised as ours. Admittedly, there are more men working for us than women at present. But that is only due to the traditionally high proportion of men in our production, who account for about half our employees. When we talk about modern workplace models, then we inevitably also talk about working from home. That is technically not possible for this group, for example. However, we have noticed that many colleagues like working together in place and are very happy to come to the office. It is also a fact that many good ideas and exciting thoughts arise unplanned, during informal chats at lunchtime or in the corridor over a coffee. If you only have scheduled online meetings, this factor which cannot be overlooked as part of the innovation process is lost. Are ideas on sustainability actively promoted in the company? We have the "CIP", the continuous improvement process. Always making things better is part of the Schöck culture. This is where we leverage the potentials for optimisation that arise in our day-to-day work. The momentum of sustainability often plays a part in this quite automatically. At the same time, we naturally have a structured process in product development to drive technological innovation forward, with clear milestones from the initial idea through to series production. And here again, we notice that new ideas related to sustainability are always popping up. From a legal standpoint, Schöck doesn't really have to present its first sustainability report until 2026. Why this early initiative? That's just the way we are. We don’t wait, we get started. It also focusses our attention internally and enables a good learning curve. In the coming years, we will continue to optimise the reporting process and will therefore be well prepared when the time comes. "You can't make sustainability by order." What do you think of this statement? I would agree with it in principle, because intrinsic motivation makes the difference between acting out of obligation and of free will. And at Schöck we always strive for free will in order to expand our leading role also in the field of sustainability. Nevertheless, I don't want to deny that the pressure from society, legislators and players within the building industry (e.g. planners) is growing in momentum. Commitment and clear framework conditions are needed. Only then can things be achieved on a large scale. 41 Schöck Sustainability Report 2022
Environmental efficiency Seeing the “bigger picture”. Company Sustainability management Fields of activity GRI content index 42
Schöck has its roots in a region rich in natural beauty. We are aware of the value of these natural resources and actively contribute to ensuring that soil, air and water are not unnecessarily polluted by our business activities. In production, the focus is on responsible handling of waste and resource-saving manufacturing. Wherever possible, we use recycled and renewable materials to improve our eco-balance. We are also developing innovative materials to reduce our emissions footprint. Together, we work to achieve a balance between our productivity goals and preserving the natural environment. All our employees are involved in this process through continuous improvement measures. For example, we have made great progress in reducing packaging material and also in using alternative, low-emission materials in recent years. Waste management and resource-efficient use of materials Schöck is progressively reducing its waste and ensuring safe disposal methods. All products are manufactured in the most resource-efficient way as possible. Wherever possible, Schöck employs renewable or recycled materials. Sustainability goals: Sustainability topic: The following SDGs (Sustainable Development Goals) are supported by the measures in this topic: Ensuring healthy lives for all people of all ages and promoting their well-being Ensure sustainable consumption and production patterns Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss Promoting sustained, inclusive and sustainable economic growth, productive full employment and decent work for all Building a resilient infrastructure, driving inclusive and sustainable industrialisation and supporting innovation Schöck Sustainability Report 2022 43
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