Purpose and structure of organisation

Organisational purpose

Description of the Zehnder Group business model

Zehnder Group is a publicly listed company headquartered in Gränichen (CH) providing worldwide leading solutions for a comfortable, energy efficient and healthy indoor climate. Our product and service portfolio comprises heating, cooling, indoor ventilation and air cleaning. The Group is globally active, developing and manufacturing solutions at its own production sites located in 20 countries across Europe, China and North America. Since 2023, the Zehnder Group’s Articles of Association have explicitly stated that the company is committed to achieving sustainable and enduring value creation as part of its corporate purpose.

The Zehnder value chain

Organisational structure

Organisation chart Zehnder Group

Sustainability organisation of Zehnder Group

Zehnder Group has established an organisational structure for sustainability that is deeply rooted in the company, defining clear roles and responsibilities.

As sustainability holds utmost importance for Zehnder Group, it falls under the ultimate responsibility of our Board of Directors as part of their duty of care. As part of its overall management of the company and issuing of instructions, the Board of Directors has the explicit task of reviewing and approving the sustainability strategy and sustainability targets as well as approving the annual report on non-financial matters. The topic of sustainability also affects the work of the individual committees of the Board of Directors, such as the related risk assessment in the Audit Committee or the incentivisation in the Nomination and Compensation Committee. Sustainability is discussed regularly, at least biannually, as a standing item on the Board’s agenda. Emphasising the significance of sustainability within Zehnder Group, the Chair of the Board of Directors and the Chief Executive Officer (CEO) oversee sustainability matters.

Sustainability expertise is one of multiple criteria when it comes to the recruitment of Board members. Five out of the seven Board members are concerned with sustainability matters on the other boards they sit on. Four external Board members have independently completed various seminars and trainings on the topic. Furthermore, the Board conducts a self-assessment every two years. One of the recurring topics has been sustainability and the fact that it needs to be regularly debated and included in all decision-making processes.

The Sustainability Steering Committee, which is chaired by the CEO and convenes monthly, serves as the central body for sustainability strategy development and decision-making. It comprises the Chair of the Board of Directors and the members of the Group Executive Committee, including the CEO, the Chief Financial Officer (CFO), the Chief Operating Officer (COO) Radiators EMEA (Europe, Middle East and Africa), the COO Ventilation EMEA and the Chief Commercial Officer EMEA. Further members are the heads of Group Marketing & Digital Communication EMEA, Group Sustainability, Investor Relations and Corporate Communications, Group Strategy & Mergers and Acquisitions, Group Human Resources (HR), as well as the Managing Director CAS (clean air solutions) and the Managing Director CORE (heat exchangers).

The Group Sustainability Manager position is a staff position that reports directly to the CEO. This manager supports the Steering Committee and coordinates the development and implementation of mandatory sustainability processes and strategies as well as data analyses, data evaluation and reporting across Zehnder Group. Two full-time equivalents support the Group Sustainability Manager.

Beyond that, Investor Relations and Corporate Communications, Group Procurement, Group Legal, Group Compliance and the Competence Centres for the ventilation and radiator business segments are actively engaged in our sustainability activities.