Climate

As a building components supplier for products and solutions for indoor climate as well as interior doors made of wood and glass, Arbonia has a responsibility for the environment and climate. We see great potential in the transformation into an environmentally compatible economy and would like to substantially contribute to making buildings more sustainable with our product, development and service portfolio. By reducing greenhouse gas emissions along our entire value chain, product innovations and new solutions, we aim to reduce the environmental impact of our business activities and those of our customers

Article 964a ff. Code of Obligations

  

Concept and due diligence
Product Management implements all new requirements on the part of customers and/or legislators at the interface between the company and the market. The team assigns responsibilities within the company, defines specifications for quality assurance and regulates the labelling requirement including corresponding certifications in line with technical conformity. The team is additionally responsible for product compliance with regard to legal regulations and standards, ensures health and safety for (end) customers and controls the handling of problematic components such as dangerous chemicals. 

Measures including evaluation of effectiveness
With our measures, we especially want to extend the service life of the products. Key factors are the continuous optimisation of the quality management system and production methods, the modernisation of the machinery as well as the careful selection of suppliers with the highest standards. Corresponding training courses for employees aim to continuously increase responsibility for product quality.

Material risks and how they are handled (own scope of business and, where applicable, business relationships)
New sustainability requirements may lead to a lower product margin as customers are unwilling to pay higher prices. At the same time, there is a risk of damage to the company’s image or reputation if the product portfolio is not sufficiently sustainable or if the products being developed do not correspond to market demand.

Furthermore, there is a particular focus on product safety or technical defects which may have legal consequences. Strict quality controls and high safety standards are therefore required.

Key performance indicators
We collect data on the revenues that result from new products and use this to analyse the success of our product innovations. Feedback from customers and end users significantly contributes to a qualitative assessment as well. Furthermore, the proportion of certified sites (ISO 14001 and ISO 50001) plays an important role in the assessment for product management.

  

Our product strategy is based on optimising existing production processes and existing products as well as developing innovative solutions with a focus on energy efficiency. We expect green technologies to provide us with further impetus and development breakthroughs. This is our way of responding to the increasing demands of customers, residents and legislators.

At the same time, these innovations allow customers to reduce energy consumption and thus save money. In addition to these performance requirements, standardised processes aimed at ensuring product safety are an integral part of operational workflows. This involves checking material quality and functionality as well as applicable safety guidelines. Training programmes ensure that all relevant employees are applying the processes.

New requirements on the part of customers or legislators feed directly into product programme planning and roadmap development. The sales managers of the individual markets are kept informed through close collaboration and the Development department implements the defined projects accordingly. A large portion of our production sites operate with certifications for environmental management (ISO 14001) and energy (ISO 50001).

Key figures for product responsibility
  2023 2022 2021
Total production volume¹ in TCHF 819 820 833 586 851 671 

of which at ISO 14001 certified sites

 46.0 % 47.8 % 42.7 %

of which at ISO 50001 certified sites

 66.0 % 71.6 % 64.9 %

1 Production costs of goods produced at the site, excluding purchases

Climate Division

The strategy of the Climate Division is clearly oriented towards the relevant megatrends “CO2 reduction” and “healthy and comfortable indoor climate”. In regard to the development of the product portfolio, the Climate Division’s focus is on growth products while simultaneously expanding its position in the original product groups. In the reporting year, it was possible to make targeted investments to reinforce the strategy for products and production that is based on the following four pillars:

  • “Best in class” production for radiators
  • Use of renewable energies for heat pump and storage battery products
  • Radiant heating and cooling for modern buildings
  • Ventilation and indoor air quality

At the same time, the product strategy of the Climate Division is oriented towards the climate change package of the EU Commission, which aims to reduce greenhouse gases by 55 % by 2030 and achieve a climate-neutral economic area by 2050. The division has already been pursuing a consistent strategy of further developing integrated heating systems and corresponding components by means of innovations for several years. This strategy comprises modern heat generation and optimum heat transfer as well as systems for energy storage for all building types and application areas. Within this context, the Climate Division offers solutions for new buildings as well as the renovation market. A recent example of our innovations is the development of a new heat pump generation which uses natural cooling agents.

Products with certification and success monitoring

At all companies of the Climate Division, the product development follows a systematic process with defined milestones. In this regard, the revenue development of new products as well as qualitative feedback from the market enable reliable success monitoring. These new products as well as most of the other products of the Climate Division are subject to product certification with the quality marks RAL and NF for radiators, EHPA for heat pumps and DINCertco approvals for underfloor heating pipes. Fan coils have multiple Eurovent certifications, while chimneys have the IMQ certificate.

Sabiana has obtained relevant certifications in the fields of environmental management, product health and safety and employee safety (ISO 9001 and ISO 14001). Furthermore, Sabiana follows the rules of the Ridomus/Ecoped consortium for the management and disposal of products that have reached the end of their life cycle and may contain electrical and electronic components.

In the reporting year, Sabiana made a start on the process of obtaining EPD (Environmental Product Declaration) certification. The Cassette ECM (low energy consumption electronic motor) product family was selected as a representative product in terms of volume and revenue. The corresponding EPD was verified and then published on the Environdec international platform (Sweden) in October 2023. The starting point for EPD certification involves developing the relevant Product Category Rules (PCR) which define the carbon footprint over the entire life cycle of the product. The PCR were submitted to Environdec in July 2023 and are scheduled for publication in March 2024. The definition of all further EPDs and their publication is taking place as planned on the basis of the priorities defined for the various product families (Carisma). The corresponding EPD certification was verified in September 2023 and published in October 2023.

Kermi also obtained an Environmental Product Declaration (EPD) for all steel radiators in the reporting year. Awarded by the IBU Institut für Bauen und Umwelt e.V., an association of building product manufacturers, this certification makes the environmental impact of the products transparent and comparable across the entire process chain. The label makes it possible for building designers and contractors to gain a competitive advantage in tenders by using products with a lower environmental impact. Kermi is the first company in Germany to obtain EPD certification for all steel radiators in its product portfolio.

Energy efficiency thanks to new products

Developing innovative heat pumps and storage batteries is a key priority for the Climate Division due to their sustainability credentials. In addition to the actual product development, this also concerns the further process optimisation and system integrations. In addition to the existing 7 kWh and 11 kWh devices, the division introduced an air/water heat pump for outdoor use with an output of 18 kWh in the reporting year. The introduction of a storage battery with an output of 10 kWh is planned for the first quarter of 2024 in order to be able to equip larger properties as well.

The Climate Division is keen to gain additional impetus for its innovation work through participation in trade fairs, cooperation with universities, studying specialist literature, participation in industry associations and standardisation bodies, as well as continuous training of employees. New developments are protected by applying for industrial property rights if possible. Systematic product optimisation is based on the regular exchange of ideas between management and production as well as professional monitoring of deadlines and costs.

Sabiana is keen to promote the use of an electrostatic filter system instead of a mechanical one and is using information materials and training to raise its profile among installers, dealers and end customers. This filter is more energy-efficient and resource-efficient. Electrostatic filtration leads to reduced steel and aluminium consumption due to the longer life cycle and does not generate any hazardous waste. Furthermore, this filter system reduces energy consumption by 70 %, improves indoor air quality and kills germs. In 2023, Sabiana increased the production quantities of electronic motors (ECM) for all fan coil models. These motors result in reduced energy consumption compared to conventional asynchronous motors. For example, the energy consumption of ECM cassettes with the same air flow is reduced by 35 % at high speeds and up to 75 % at low speeds.

Key figures for product responsibility: Climate Division
  2023 2022 2021
Employees in research & development (FTE) 85 80 72
Expenditure on research & development (TCHF) 10 367 9 323 10 649
Expenditure on research & development as a share of revenues 1.8 % 1.7 % 1.7 %
Share of net revenues from third parties with new products1 9.8 % 12.3 % 10.8 %
Expansion investments in % of total investments 46.6 % 65.7 % 25.3 %

1 New products are defined as products introduced during the last three years.

Doors Division

The innovative products and solutions of the Doors Division are very important for the pursuit of new market shares. The emphasis is on mass production as well as the manufacturing of wooden and glass doors according to individual customer requirements. The division is also pushing the development and manufacturing of technical doors and fire protection doors as part of a joint project within the entire Wood Solutions Business Unit. Production is supplemented by various service solutions. Intensive support of customers during the construction phase is thus just as much a matter of course as preserving the value of manufactured products. This is done by providing specific cleaning agents and maintenance instructions/work, for example.

Customer-oriented products

The basis for developing high-quality products with optimised material use is in-depth market observation: Through regular customer surveys, the division ensures that the requirements and demands of customers are taken into account in the innovation process. In the context of product development, the division not only concentrates on technical progress but also on an innovative design that aims to convince users and fitters in equal measure. The exchange of experience between the companies of the division as well as the contact with research centres form a solid basis for this.

The division aims to expand its leading position in the European doors market by developing customer-oriented products, optimising the existing portfolio, reducing delivery times through targeted investments and strengthening customer relationships. Important drivers for this progress are digitisation and the reduction of packaging material – as well as the development of new product groups. A good example is the PU edging system at the Roggwil (CH) site, which can be used to produce long-lasting doors for the hospital area. The robust edge means that the doors can be used for longer. The same effect is achieved by the aluminium frames. DigiDoor is another innovation. This technology is based on a digital twin and allows faster access to product-specific information. This accelerates maintenance and repair work and means that the technician can have the appropriate spare parts ready when they arrive on site.

Success monitoring for new developments is ensured with systematic project management and regular reporting to management. The companies of the division make an important contribution to establishing future standards and regulations through their active participation in bodies and committees. This also makes it possible to identify trends early in order to adjust the strategic orientation.

Certification and quality assurance

Internal product management in the Doors Division ensures that even highly specialised customer requirements are fulfilled in every detail and all legal regulations and common standards are observed without compromise through standards-compliant production. In this way, the sales volume for certified products can be successively increased. In the Doors Division, consistently high product quality is ensured in part by the ISO 9001 quality management system as well as further certification bodies such as ift and SIPIZ.

Risk and hazard assessments are carried out in the development process as a matter of principle and measures are implemented to reduce hazards where appropriate. Furthermore, particularly in the case of products with electrical and/or electronic parts, extensive internal and external testing is carried out; for example, regarding electrical safety and electromagnetic compatibility. If necessary, modifications are made to products following these tests. It was also possible in the reporting year to test products’ practical suitability more effectively thanks to the company’s own certified laboratory with a test bench.

Quality assurance monitors the materials used during manufacturing, supervises production control and checks the manufactured parts. The assurance of the highest quality standards – the heart of the standard EN ISO 9001 – makes it possible to maximise customer satisfaction. The building products manufactured by the Doors Division are subsequently placed on the market in accordance with valid legal regulations and standards. This requires in-house production control; documentation is carried out by the respective quality assurance department at the individual companies.

Quality characteristics and conformity

The innovative spirit of the division is based on active participation in various bodies as well as on the division-wide exchange of know-how and experience. As a result, customers always receive innovative, high-quality and durable products. The shower stalls of the Glass Solutions Business Unit, for example, are characterised by exceptional durability. The products are tested in accordance with the strict standards EN 14428 (CE) and PPP 53005 (TÜV / GS). This covers characteristics such as sturdy materials, seals and easy-care use. The use of single-pane safety glass up to ten millimetres thick is documented in accordance with the standard EN 12150.

In the reporting year, Prüm and Garant each passed the audits by FSC®, PEFC, WPK ift and WPK SIPIZ, concluding the investment programme for these sites. The division is continuing to invest in IT and the digitisation of processes. The ERP system at Invado has already been switched over to SAP S4 / HANA; the roll-out to Prüm and Garant is still ongoing. The harmonisation of the ERP system will make future cooperation between the companies more efficient and increase productivity.

Key figures for product responsibility: Doors Division
  2023 2022 2021
Employees in research & development (FTE) 47 51 50
Expenditure on research & development (TCHF) 4 777 4 469 4 950
Expenditure on research & development as a share of revenues 1.0 % 0.9 % 0.9 %
Share of net revenues from third parties with new products1 18.5 % 16.5 % 21.4 %
Expansion investments in % of total investments 57.2 % 58.7 % 48.6 %

1 New products are defined as products introduced during the last three years.