VAT, the leading global supplier of high-end vacuum valves, today published its second annual Sustainability Report, providing stakeholders with a broader and more robust range of environment, social and governance (ESG) metrics, as well as the company’s initial ESG targets.

The company said the improvements demonstrate the increased priority given to sustainability and ESG performance by the Board of Directors and executive management following in-depth discussions with a variety of stakeholders. This is also reflected in the integration of ESG measures and targets into the company’s mid-term strategic and operational planning.

“Our ambition is to achieve leadership in ESG performance that matches our global standing in vacuum valves,” said Martin Komischke, Chair of VAT’s Board of Directors. “There is still more to do, but we believe we are taking important steps in the right direction.”

The new disclosures in the 2022 Sustainability Report are based on improved data collection in areas such as greenhouse gas (GHG) emissions, energy consumption, and waste generation. Reporting on occupational health and safety performance has been expanded along with hiring and employee turnover metrics. Additionally, VAT performed an internal audit in line with the Responsible Business Alliance code of conduct in areas such as labor practice, health and safety, environment, ethics and management systems.

Stakeholder dialog

VAT also carried out its first Materiality Assessment in 2022, engaging with a variety of stakeholder groups, including VAT’s Board of Directors, employees, customers, and investors to determine the effects that VAT and its entire value chain have on the environment and society, as well as the risks and opportunities that ESG issues pose for the company. This assessment, which was finalized earlier this year and will be regularly updated, forms the basis for setting ESG priorities and targets.

Areas identified as material for the company included:

• GHG emissions and climate protection
• Energy consumption and renewable energy use
• Employee diversity, inclusion, and equal pay
• Ethics and integrity

Inaugural ESG targets

Following this assessment, and based on a more robust baseline of ESG data, VAT has targeted a 50% reduction in GHG emissions by 2025 compared with 2022 levels. The company also aims to increase the proportion of women among new hires to 23% by 2027 and to 25% by 2030, as well as to increase the share of women in leadership positions to 25% by 2027.

Other ESG performance highlights for 2022 include a 9% reduction in emissions intensity (GHG emissions per unit of revenue) and a 6% increase in renewable energy consumption, including a 5% increase in the use of solar power generated by the company itself. Waste intensity also declined by 12% in 2022 compared with the previous year.

In addition, employee engagement improved for the fifth year in a row, despite continuing market volatility and the resulting demands on employee flexibility and resilience. VAT lifted its rating on pay equity among men and women in Switzerland, while occupational health and safety performance improved despite significantly higher production output in 2022.

From a governance perspective, the company again reported no compliance incidents in 2022. VAT is also rolling out a code of conduct for suppliers to ensure ethical and responsible business practices in other parts of its value chain. VAT also strengthened its IT security systems in 2022 to ensure it remains a trustworthy and reliable business partner.

VAT said the integration of ESG principles into its business strategy, operational processes and company culture will remain a management priority in 2023. In line with company’s newly published ESG targets, VAT will focus on climate protection, sustainable resource use, and increased employee diversity.

Download

The 2022 Sustainability Report can be downloaded from VAT’s website.