Focus Topics – Environmental matters

Resource-efficient production

Impacts, risks, and opportunities

Impacts

Zehnder’s operations, particularly radiator manufacturing, are resource-intensive, relying on materials like aluminium and steel, whose extraction processes generate significant CO2e emissions and pollution. The production also demands substantial energy and water use, involves hazardous substances, and produces waste, wastewater, and air pollutants such as nitrogen oxides (NOx), sulphur oxides (SOx), and volatile organic compounds (VOC).

While Zehnder’s chroming facilities produce wastewater and sludge, proper treatment ensures environmental safety. In contrast, ventilation system production is less resource-intensive, primarily involving assembly. However, both ventilation systems and electric radiators rely heavily on electronics, requiring scarce resources and potentially conflict minerals, underscoring the importance of sustainable sourcing. The company’s focus on durable materials extends product life cycles, reducing overall resource demand.

Risks and opportunities

Zehnder faces risks tied to resource efficiency, including rising operational costs from stricter emissions and water use regulations, as well as reputational risks if pollution and waste are not properly managed. The resource-intensive nature of radiator manufacturing amplifies these challenges.

However, enhancing resource efficiency offers several opportunities. By streamlining production and reducing waste, Zehnder can cut costs and improve regulatory compliance. Product innovations prioritising energy efficiency, durability, and repairability align with the increasing demand for circular economy solutions, bolstering the company’s market competitiveness.

Management approach

Zehnder prioritises resource efficiency through continuous process monitoring and improvements to reduce waste, water use, and emissions while safeguarding biodiversity. Each production site is responsible for implementing measures and providing regular progress updates to the Sustainability Steering Committee. Regular due diligence includes site certifications, with all European radiator production sites certified under ISO 14001 for environmental management.

Protecting biodiversity

Zehnder recognises the indirect impact its activities can have on ecosystems, particularly from land-use changes and pollution. The company adheres strictly to environmental regulations and participates in local biodiversity initiatives where applicable. Tools like the WWF Biodiversity Risk Filter1 are used to assess potential impacts on ecosystems and to prioritise initiatives. Several production sites are located near protected areas, requiring careful management of pollution and wastewater. The target “Assess our main supply chains for materials that are a risk to biodiversity and define measures to improve hot spots” has been reallocated, as we no longer address this topic in isolation but integrate it within our supply chain risk management. This ensures that biodiversity goals remain a priority and are accounted for, particularly where they are relevant along the value chain.

Reducing pollution

Zehnder’s production processes, particularly in radiator manufacturing, are energy-intensive and produce hazardous emissions. To address this, the company is trialling alternative surface treatments to reduce dependence on chroming, which generates wastewater and sludge. Emissions of NOx, SOx, and VOC are tracked, and Zehnder works to reduce them wherever possible, ensuring full compliance with local environmental regulations.

Water use and wastewater treatment

Our approach to water and wastewater management focuses on reducing freshwater withdrawal and ensuring responsible treatment of wastewater to protect local ecosystems and comply with regulatory standards.

Based on the assessment using the Aqueduct Water Risk Atlas2 (conducted in 2023) 14 of our sites are located in areas with “high” or “extremely high” water stress, where water demand exceeds 60% of available renewable resources. Three of these sites – Manisa (Türkiye), Vaux-Andigny (France), and Dachang (China) – are radiator production sites with water-intensive processes like painting, plating, and cutting. However, Dachang ceased radiator production in July this year, and the water-related targets outlined below are now applicable only to the two remaining sites in high water stress areas. The other 11 flagged sites are offices or production sites that do not involve water-intensive processes.

For radiator production, water is sourced from springs or the drinking water network. We have set a target to reduce freshwater use by increasing water reuse, recycling, and conducting regular leak checks. Wastewater from sites in Manisa (Türkiye), Vaux-Andigny (France), Bolesławiec (Poland), Gränichen (Switzerland), and Lahr (Germany) undergoes pre-treatment before being processed by public sewage plants, with efficiency monitored by public authorities. Independent bodies regularly test our wastewater to ensure compliance with legal standards.

Waste management and recycling

Efforts in radiator production include reducing the use of protective films and other packaging materials, with a focus on increasing the use of recycled and recyclable materials. Additionally, initiatives are in place to lower production rejects and reuse primary products, contributing to overall waste reduction.

1The WWF Biodiversity Risk Filter is a tool developed by the World Wide Fund for Nature (WWF) to help companies identify, assess, and manage biodiversity-related risks in their operations and supply chains by using global data to highlight potential impacts on ecosystems and species.

2The Aqueduct Water Risk Atlas developed by the World Resources Institute is an online global database of local-level water risk indicators and a global standard for measuring and reporting geographic water risk.

Implementation and outlook

To implement the above management approach and policies, we formulated two ambitions which are supported by one or more targets and monitored via specific KPIs.

Targets

Ambition: Significantly reduce our energy consumption, waste generation, use of hazardous substances, polluting air emissions and water consumption

Target: Increase waste recycling

Target: Introduce circular business models including refurbishment to leverage product returns

Target: Replace hazardous substances with non-hazardous substances

Target: Reduce polluting air emissions

Target: Decrease water withdrawal in production sites located in areas with water stress

1C-profiles are C-shaped protective profiles typically made of plastic that safeguard product edges during transport.

Metrics

GRI 303: Water and Effluents 2018
Disclosure 303-3 Water withdrawal
Disclosure 303-3a Total water withdrawal from all areas

Indicator description

Unit of measure

2024

2023

Change from prior year

Surface freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

0.15

-

n/a

Other surface water withdrawal (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Total surface water

ML

0.15

-

n/a

Groundwater freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

9.48

9.45

0.3

%

Other groundwater withdrawal (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Total groundwater

ML

9.48

9.45

0.3

%

Seawater freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

-

-

-

Other seawater withdrawal (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Total seawater

ML

-

-

-

Produced freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

-

0.33

–100.0

%

Other produced water withdrawal (> 1,000 mg/L total dissolved solids)

ML

0.03

0.03

-

Total produced water

ML

0.03

0.36

–91.1

%

Third-party freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

68.25

76.54

–10.8

%

Other third-party water withdrawal (> 1,000 mg/L total dissolved solids)

ML

70.62

64.80

9.0

%

Total third-party water

ML

138.86

141.34

–1.8

%

Total freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

77.87

86.32

–9.8

%

Total other water withdrawal (> 1,000 mg/L total dissolved solids)

ML

70.65

64.83

9.0

%

Total water withdrawal

ML

148.52

151.15

–1.7

%

The unit of measure ML is used as an abbreviation for megalitre and is equal to 1 million litres.

Water withdrawal was measured in most business units, with some exceptions of very small offices where water withdrawal has been calculated based on instructions provided by the Group.

GRI 303: Water and Effluents 2018
Disclosure 303-3 Water withdrawal
Disclosure 303-3b Total water withdrawal from all areas with water stress

Indicator description

Unit of measure

2024

2023

Change from prior year

Surface freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

-

-

-

Other surface water withdrawal (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Total surface water

ML

-

-

-

Groundwater freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

8.55

8.15

4.9

%

Other groundwater withdrawal (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Total groundwater

ML

8.55

8.15

4.9

%

Seawater freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

-

-

-

Surface freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

-

-

-

Total seawater

ML

-

-

-

Produced freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

-

0.33

–100.0

%

Other produced water withdrawal (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Total produced water

ML

-

0.33

–100.0

%

Third-party freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

23.36

28.41

–17.8

%

Other third-party water withdrawal (> 1,000 mg/L total dissolved solids)

ML

70.62

64.80

9.0

%

Total third-party water

ML

93.98

93.21

0.8

%

Total freshwater withdrawal (≤ 1,000 mg/L total dissolved solids)

ML

31.91

36.89

–13.5

%

Total other water withdrawal (> 1,000 mg/L total dissolved solids)

ML

70.62

64.80

9.0

%

Total water withdrawal

ML

102.53

101.69

0.8

%

The unit of measure ML is used as an abbreviation for megalitre and is equal to 1 million litres.

Water withdrawal was measured in all business units at locations with water stress.

GRI 303: Water and Effluents 2018
Disclosure 303-4 Water discharge
Disclosure 303-4a Total water discharge to all areas

Indicator description

Unit of measure

2024

2023

Change from prior year

Surface freshwater water discharge (≤ 1,000 mg/L total dissolved solids)

ML

0.13

-

n/a

Other surface water discharge (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Groundwater freshwater discharge (≤ 1,000 mg/L total dissolved solids)

ML

6.84

-

n/a

Other groundwater discharge (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Seawater freshwater discharge (≤ 1,000 mg/L total dissolved solids)

ML

-

-

-

Other seawater discharge (> 1,000 mg/L total dissolved solids)

ML

-

-

-

Third-party freshwater discharge (≤ 1,000 mg/L total dissolved solids)

ML

49.31

47.05

4.8

%

Other third-party discharge (> 1,000 mg/L total dissolved solids)

ML

55.91

69.45

–19.5

%

Total freshwater discharge (≤ 1,000 mg/L total dissolved solids)

ML

56.28

47.05

19.6

%

Total other water discharge (> 1,000 mg/L total dissolved solids)

ML

55.91

69.45

–19.5

%

Total water discharge

ML

112.19

116.50

–3.7

%

The unit of measure ML is used as an abbreviation for megalitre and is equal to 1 million litres.

Water discharge was often not measured and has thus been calculated by the business units, based on clear instructions provided by the Group.

GRI 303: Water and Effluents 2018
Disclosure 303-4 Water discharge
Disclosure 303-4c Total water discharge to all areas with water stress

Indicator description

Unit of measure

2024

2023

Change from prior year

Total freshwater discharge (≤ 1,000 mg/L total dissolved solids)

ML

20.22

11.99

68.6

%

Total other water discharge (> 1,000 mg/L total dissolved solids)

ML

54.47

67.09

–18.8

%

Total water discharge

ML

74.69

79.08

–5.6

%

The unit of measure ML is used as an abbreviation for megalitre and is equal to 1 million litres.

Water discharge was often not measured and has thus been calculated by the business units, based on clear instructions provided by the Group.

GRI 303: Water and Effluents 2018
Disclosure 303-5 Water consumption
Disclosure 303-5a Total water consumption from all areas

Indicator description

Unit of measure

2024

2023

Change from prior year

Total water consumption

ML

36.33

34.65

4.8

%

The unit of measure ML is used as an abbreviation for megalitre and is equal to 1 million litres.

Water consumption was always calculated by the business units, based on clear instructions provided by the Group. The assumption was that all business units consume water in some way.

GRI 303: Water and Effluents 2018
Disclosure 303-5 Water consumption
Disclosure 303-5b Total water consumption from all areas with water stress

Indicator description

Unit of measure

2024

2023

Change from prior year

Total water consumption

ML

27.84

22.61

23.1

%

The unit of measure ML is used as an abbreviation for megalitre and is equal to 1 million litres.

Water consumption was always calculated by the business units, based on clear instructions provided by the Group. The assumption was that all business units consume water in some way.

GRI 305: Emissions 2016
Disclosure 305-7 Nitrogen oxides (NOx), sulphur oxides (SOx), and other significant air emissions

Indicator description

Unit of measure

2024

2023

Change from prior year

Significant air emissions of nitrogen oxides (NOx)

kg

18,660

21,279

–12.3

%

Significant air emissions of sulphur oxides (SOx)

kg

439

450

–2.3

%

Significant air emissions of persistent organic pollutants (POP)

kg

0

0

-

Significant air emissions of volatile organic compounds (VOC)

kg

4,106

4,152

–1.1

%

Significant air emissions of hazardous air pollutants (HAP)

kg

1

1

-

Significant air emissions of particulate matter (PM)

kg

712

897

–20.7

%

Significant air emissions of other standard categories of air emissions identified in relevant regulations: carbon monoxide (CO)

kg

35,104

35,210

–0.3

%

Emission factors for GRI 305-7 are taken from the EMEP/EEA air pollutant emission inventory guidebook 2019.

Emissions were calculated in Zehnder’s Hyperion Financial Management system (consolidation tool) and aggregated in Microsoft Excel.

The 2023 figures have been restated due to a calculation error. The original reported figures for 2023 were 25,946 kg NOx, 16,845 kg SOx, 16,355 kg POP, 9,368 kg VOC, 16,360 kg HAP, 3,694 kg PM and 81,408 kg CO.

GRI 306: Waste 2020
Disclosure 306-3 Waste generated

Indicator description

Unit of measure

2024

2023

Change from prior year

Total waste – heavy metals

t/year

-

0.05

–100.0

%

Total waste – batteries

t/year

2.16

1.57

37.4

%

Total waste – electronics

t/year

21.06

10.02

110.1

%

Total waste – fluorescent lamps

t/year

0.34

0.71

–52.7

%

Total waste – used oil & emulsions

t/year

37.66

53.63

–29.8

%

Total waste – solvents & chemicals

t/year

31.29

46.32

–32.5

%

Total waste – printing ink/toners

t/year

2.08

1.52

37.0

%

Total waste – quartz sand/powder

t/year

31.29

41.22

–24.1

%

Total waste – hazardous sludge

t/year

84.35

89.25

–5.49

%

Total waste – other hazardous waste

t/year

169.56

67.77

150.2

%

Total hazardous waste

t/year

379.79

312.06

21.7

%

Total waste – metals

t/year

3,863.81

4,082.73

–5.4

%

Total waste – plastics

t/year

409.89

733.40

–44.1

%

Total waste – paper & cardboard

t/year

751.28

1,668.26

–55.0

%

Total waste – glass

t/year

1.75

0.23

676.1

%

Total waste – wood treated

t/year

343.61

370.19

–7.2

%

Total waste – wood untreated

t/year

190.80

231.47

–17.6

%

Total waste – residual non-hazardous waste

t/year

1,020.42

1,110.63

–8.1

%

Total non-hazardous waste

t/year

6,581.57

8,196.90

–19.7

%

Total weight of waste

t/year

6,961.36

8,508.96

–18.2

%

GRI 306: Waste 2020
Disclosure 306-4 Waste diverted from disposal
Disclosure 306-4a Total weight of waste diverted from disposal

Indicator description

Unit of measure

2024

2023

Change from prior year

Total waste diverted from disposal – heavy metals

t/year

-

-

-

Total waste diverted from disposal – batteries

t/year

1.94

1.45

34.0

%

Total waste diverted from disposal – electronics

t/year

11.97

9.85

21.5

%

Total waste diverted from disposal – fluorescent lamps

t/year

0.26

0.44

–40.9

%

Total waste diverted from disposal – used oil & emulsions

t/year

8.60

26.29

–67.3

%

Total waste diverted from disposal – solvents and chemicals

t/year

10.74

12.12

–11.4

%

Total waste diverted from disposal – printing ink/toners

t/year

1.87

1.31

42.9

%

Total waste diverted from disposal – quartz sand/powder

t/year

1.12

27.77

–96.0

%

Total waste diverted from disposal – hazardous sludge

t/year

25.95

25.02

3.7

%

Total waste diverted from disposal – other hazardous waste

t/year

14.21

13.21

7.5

%

Total hazardous waste diverted from disposal

t/year

76.66

117.47

–34.7

%

Total waste diverted from disposal – metals

t/year

3,861.38

4,082.73

–5.4

%

Total waste diverted from disposal – plastics

t/year

317.49

704.49

–54.9

%

Total waste diverted from disposal – paper & cardboard

t/year

743.93

1,635.99

–54.5

%

Total waste diverted from disposal – glass

t/year

1.55

0.03

5,978.4

%

Total waste diverted from disposal – wood treated

t/year

96.37

155.04

–37.8

%

Total waste diverted from disposal – wood untreated

t/year

164.22

205.33

–20.0

%

Total waste diverted from disposal – residual non-hazardous waste

t/year

121.22

273.68

–55.7

%

Total non-hazardous waste diverted from disposal

t/year

5,306.16

7,057.28

–24.8

%

Total weight of waste diverted from disposal

t/year

5,382.83

7,174.75

–25.0

%

Total waste diverted from disposal vs. total waste

%

77.32

84.32

–7.0

pp

GRI 306: Waste 2020
Disclosure 306-4 Waste diverted from disposal
Disclosure 306-4b Total weight of hazardous waste diverted from disposal

Indicator description

Unit of measure

2024

2023

Change from prior year

Hazardous waste prepared for reuse

t/year

4.68

11.26

–58.4

%

Hazardous waste recycled

t/year

46.02

79.71

–42.3

%

Hazardous waste treated with other recovery operations

t/year

25.96

26.50

–2.0

%

Total hazardous waste diverted from disposal

t/year

76.66

117.47

–34.7

%

GRI 306: Waste 2020
Disclosure 306-4 Waste diverted from disposal
Disclosure 306-4c Total weight of non-hazardous waste diverted from disposal

Indicator description

Unit of measure

2024

2023

Change from prior year

Non-hazardous waste prepared for reuse

t/year

316.41

481.94

–34.3

%

Non-hazardous waste recycled

t/year

4,914.33

6,283.70

–21.8

%

Non-hazardous waste treated with other recovery operations

t/year

75.42

291.63

–74.1

%

Total non-hazardous waste diverted from disposal

t/year

5,306.16

7,057.28

–24.8

%

GRI 306: Waste 2020
Disclosure 306-5 Waste directed to disposal
Disclosure 306-5a Total weight of waste directed to disposal

Indicator description

Unit of measure

2024

2023

Change from prior year

Total waste directed to disposal – heavy metals

t/year

-

0.05

–100.0

%

Total waste directed to disposal – batteries

t/year

0.22

0.12

77.9

%

Total waste directed to disposal – electronics

t/year

9.09

0.17

5,152.9

%

Total waste directed to disposal – fluorescent lamps

t/year

0.08

0.27

–72.0

%

Total waste directed to disposal – used oil & emulsions

t/year

29.06

27.34

6.3

%

Total waste directed to disposal – solvents & chemicals

t/year

20.55

34.21

–39.9

%

Total waste directed to disposal – printing ink/toners

t/year

0.21

0.21

-

Total waste directed to disposal – quartz sand/powder

t/year

30.17

13.44

124.4

%

Total waste directed to disposal – hazardous sludge

t/year

58.40

64.22

–9.1

%

Total waste directed to disposal – other hazardous waste

t/year

155.35

54.56

184.8

%

Total hazardous waste directed to disposal

t/year

303.13

194.59

55.8

%

Total waste directed to disposal – metals

t/year

2.43

-

n/a

Total waste directed to disposal – plastics

t/year

92.39

28.91

219.6

%

Total waste directed to disposal – paper & cardboard

t/year

7.35

32.27

–77.2

%

Total waste directed to disposal – glass

t/year

0.20

0.20

-

Total waste directed to disposal – wood treated

t/year

247.24

215.15

14.9

%

Total waste directed to disposal – wood untreated

t/year

26.58

26.14

1.7

%

Total waste directed to disposal – residual non-hazardous waste

t/year

899.20

836.95

7.4

%

Total non-hazardous waste directed to disposal

t/year

1,275.40

1,139.62

11.9

%

Total weight of waste directed to disposal

t/year

1,578.53

1,334.21

18.3

%

GRI 306: Waste 2020
Disclosure 306-5 Waste directed to disposal
Disclosure 306-5b Total weight of hazardous waste directed to disposal

Indicator description

Unit of measure

2024

2023

Change from prior year

Hazardous waste incinerated (with energy recovery)

t/year

143.58

98.36

46.0

%

Hazardous waste incinerated (without energy recovery)

t/year

23.41

2.60

800.3

%

Hazardous waste disposed of in a landfill

t/year

17.84

46.66

–61.8

%

Hazardous waste disposed of in other disposal operations

t/year

118.30

46.97

151.9

%

Total hazardous waste directed to disposal

t/year

303.13

194.59

55.8

%

GRI 306: Waste 2020
Disclosure 306-5 Waste directed to disposal
Disclosure 306-5c Total weight of non-hazardous waste directed to disposal

Indicator description

Unit of measure

2024

2023

Change from prior year

Non-hazardous waste incinerated (with energy recovery)

t/year

729.89

612.19

19.2

%

Non-hazardous waste incinerated (without energy recovery)

t/year

69.84

49.10

42.2

%

Non-hazardous waste disposed of in a landfill

t/year

429.35

470.31

–8.7

%

Non-hazardous waste disposed of in other disposal operations

t/year

46.33

8.03

477.1

%

Total non-hazardous waste directed to disposal

t/year

1,275.40

1,139.62

11.9

%

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