SUSTAINABILITY THE 2022 MISSION REPORT
WE’RE A #SQUADONAMISSION TO DO BETTER
WE’RE A #SQUADONAMISSION TO DO BETTER
INTRODUCTION
Mission statement
#SQUADONAMISSION to do better
Mission methodology
PRODUCT
Social impacts along the value chain
Product integrity
Targets
Key facts
PLANET
Environmental impacts along the value chain Climate change
Targets
Key facts
PEOPLE
Employee engagement, well-being, health, and safety
Diversity and inclusion
Customer and community engagement
Targets
Key facts
PROSPERITY
Customer and community engagement
Business model resilience
Key facts
PROGRESS
Business ethics and governance
Responsible handling of data
Key facts
ASSURANCE
INDEX
We’re a #SQUADONAMISSION to do better
That means creating beautiful products and experiences with better materials, better manufacturing, and better packaging. The last year has been a transformative one at Breitling. And in this, our second annual Sustainability Mission Report, we’ve outlined the concrete actions we’re taking to achieve our goals.
By 2025, Breitling’s entire product portfolio will feature better gold and better diamonds: artisanal and small-scale gold and lab-grown diamonds, traceable to a pool of accredited suppliers who meet high standards of social and environmental impact. Our road map for responsible sourcing has already begun with this year’s release of the proof-of-concept Super Chronomat Automatic 38 Origins – Breitling’s first traceable watch.
While that’s the big news on the consumer side, internally we are also making strides. We’ve engaged a substantial portion of suppliers on sustainability to drive performance across key factors. We’ve achieved carbon neutrality on all measured emissions from the current reporting cycle onward. We’ve taken our first steps toward eliminating plastic waste across our operations. And we’ve engaged our employees to contribute to meaningful local corporate volunteering activities.
As in our inaugural report, we continue to follow the guidance of the World Economic Forum/International Business Council (WEF IBC) Stakeholder Capitalism Metrics and were the first in our industry to do so in 2021.
These are just a few of the initiatives we’re working on. The following pages will reveal much more. Looking back, it’s exciting to see how much we’ve been able to accomplish in the past year. And this is just the beginning.
GEORGES KERN, CEOWe’re improving the social and environmental impact of our products and services, sourcing artisanal and small-scale gold, lab-grown diamonds, and upcycled packaging and straps. We are rolling out blockchainbacked provenance records and engaging our suppliers to increase sustainability performance.
We’re reducing our environmental footprint, transitioning to renewable energy, and eliminating plastic waste across operations. We align our efforts with key international frameworks and offset all our carbon emissions along the way.
We keep improving working environments for all the people in all our squads. We take action on equal pay and provide training, coaching, and volunteering opportunities. We are recognized as a top 10 employer in Switzerland.
We’re creating shared value with the communities we work with, together with our partners Swiss Better Gold Association, Qhubeka, Solar Impulse Foundation, Ocean Conservancy, and SUGi to support social inclusion and environmental recovery.
We’re sharing our progress with everyone. We transparently report on our sustainability progress in an annual Sustainability Mission Report, the first in the industry aligned to the WEF IBC Stakeholder Capitalism Metrics.
AT BREITLING, SUSTAINABILITY IS NOT AN EXPECTATION WE FULFILL. IT’S A MISSION WE’RE ON. WHY DON’T YOU JOIN US?
Breitling formalized its approach to sustainability in 2020. To define our sustainability vision, we focused on identifying priority sustainability topics in our inaugural broad-based and inclusive materiality assessment. To continually refresh our understanding of stakeholder priorities, we regularly conduct inclusive materiality assessments – more information on our materiality methodology may be found on page 6 of our 2021 Sustainability Mission Report . We seek stakeholder feedback through a mix of online surveys and follow-up interviews. This enables us to guide our purpose and inspire the dream of a casual, uplifting, and meaningful life through sustainable products and a tasteful yet approachable luxury style.
In the assessment conducted in the current reporting cycle among our internal stakeholders, we have seen an upward shift in the material topic “Handling of data” and a marginal change in several other topics, as shown in our current double Materiality Matrix. Based on this update, our materiality assessment maintains its validity. It will continue to be updated, at a minimum on an annual basis with internal stakeholders and a triennial basis with all stakeholders.
These material topics guide our actions and our reporting on them. They form the structure of the report, and where there is an overlap between the pillars, they are reported on in the most relevant manner in each chapter concerned.
Promoting the well-being and economic development of communities and workers affected by our business, preventing exploitation, and contributing to inclusive growth.
Related SDGs: 1, 8, 10, 12, 16
Managing the design and life cycle of our products to promote quality assurance, safety, traceability, transparency, and animal welfare.
Related SDGs: 12
Providing training, development, and well-being for employees and engaging them in our sustainability journey.
Related SDGs: 3, 8
Ensuring customer satisfaction through prioritizing privacy, security, and attentive service while engaging responsibly in public relations, lobbying, marketing, and advertising.
Related SDGs: 8, 17
Ensuring the resilience of our supply chain and long-term business plan by addressing social, environmental, and political issues.
Identifying and mitigating the environmental effects of energy usage, natural resource consumption, and waste along our value chain.
Related SDGs: 12, 13, 15, 17
Limiting our impact on the environment by accounting for and managing our emissions and setting environmental targets.
Related SDGs: 7, 9, 13, 15
Promoting fairness throughout our business, building awareness of unconscious bias, and championing diversity through inclusive employment practices.
Related SDGs: 5, 10
Addressing ethical and legal issues including internal controls, transparent management practices, and ensuring no fraud, corruption, bribery, or anticompetitive behavior.
Related SDGs: 8, 16
Adopting best practices when it comes to the use of online data, ensuring security and customer privacy.
Related SDGs: 12
Related SDGs: 9, 16
Adopted by all United Nations (UN) member states in 2015, the UN Sustainable Development Goals, or SDGs, are a “universal call to action to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere.” They are part of the 2030 Agenda for Sustainable Development, which requires ambitious action in order to deliver on the Goals by 2030.
In developing our materiality assessment, sustainability strategy, and sustainability reporting, we continually reference the UN SDGs to align our actions with those of the 2030 Agenda for Sustainable Development. As a part of our overall commitment, we are also a signatory of the United Nations Global Compact (UNGC). In 2022, we participated in the Early Adopter Programme for the Communication on Progress digital platform.
We have also assessed the relevance of the various UN SDGs to our stakeholders. In our 2021 internal stakeholder materiality assessment, we asked participants to prioritize these for Breitling in terms of their potential to impact the long-term success and resilience of Breitling and its stakeholders. Over 40 participants shared their perspective across a range of business functions and management levels. We consider this representative for the company size of Breitling and the business/market environment. We, along with our stakeholders, will continue to review means of integrating the objectives of the SDGs into our sustainability-related efforts. The results of this assessment largely correlate with those of our materiality assessment, and we will continue to calibrate both to ensure they reflect the interests of our stakeholders.
We drive positive change by creating beautiful products and experiences with better materials, better manufacturing, and better packaging.
Promoting the well-being and economic development of communities and workers affected by our business, preventing exploitation, and contributing to inclusive growth.
Managing the design and life cycle of our products to promote quality assurance, safety, traceability, transparency, and animal welfare.
Identifying and mitigating the environmental effects of energy usage, natural resource consumption, and waste along our value chain.
Breitling’s first traceable watch transparently informs and engages owners concerning the origins of its precious materials. We are enriching the blockchain certificate of the watch with sustainability data detailing the socially and environmentally responsible measures taken along the supply chain for artisanal and small-scale gold and lab-grown diamonds, with all information independently verified.
Breitling sources gold from artisanal and small-scale mining (ASM) operations that meet the Swiss Better Gold Association’s criteria. Not only does this ensure the gold’s integrity, but it allows us to make important contributions to the communities we work with. We pay an impact premium to directly support the communities from which we source. The mines and their surrounding areas benefit from community investment,
Lab-grown diamonds are identical in appearance to mined diamonds and have the same physical and chemical composition. They are subject to the same rigorous quality testing. Those used in the Super Chronomat 38 Origins watch are traceable to a single lab that meets the SCS-007 Sustainability
Rated Diamond Standard. From growing, cutting, and polishing to gemstone-setting, we have full traceability on
legal wages, healthy working conditions, protection of biodiversity and, after the close of mining activities, land rehabilitation.
Gold: Swiss Better Gold from the Touchstone mine in Segovia, Antioquia, Colombia
Exporting: Grupo Altea, ally of the Swiss Better Gold Initiative
Sourcing partner: MKS PAMP in Switzerland
Production partner: Argor Heraeus in Switzerland
the supply chain. And for every carat of lab-grown diamonds that Breitling purchases, we will invest in a social impact fund that allows us to support the communities we work with.
Diamonds: growing, cutting, and polishing by Fenix Diamonds in India (SCSaccredited producer)
Diamond-setting: by Salanitro in Switzerland (SCS-accredited handler)
We have partnered with Sourcemap, a leading supply-chain transparency company, to track the Breitling Super Chronomat 38 Origins’ gold and lab-grown diamonds. Sourcemap provides an independently validated chain of custody as well as supplier environmental, social, and governance (ESG) practices. For more information, please visit our Sourcemap
Breitling sources a relatively small amount of gold. However, we see our gold value chain as a key area in which we can achieve positive social and environmental impact and product integrity, three of our leading material topics.
We see responsible ASM sourcing as a key lever to achieve meaningful outcomes in these areas. ASM accounts for 15% of global gold production, less than that of recycled gold (approximately 25%) or gold originating from large-scale mining (approximately 60%). ASM is lowtechnology, labor-intensive mining that
generates employment and income for over 20 million workers in the gold extractive sector while supporting approximately 100 million people globally. However, ASM is also commonly associated with negative social and environmental impacts. We aim to positively influence this important sector by supporting responsible producers. During the current reporting cycle, we shifted our gold sourcing to 100% Swiss Better Gold in an industry-leading step. We are proud to renew our commitment this year.
Through its accreditation process, the Swiss Better Gold Association ensures community development, environmental management, conflict-free due diligence, the right to organize, compliance with regulations, gender equality, no child labor, no bribery or corruption, and a range of other criteria. Breitling complements this due diligence with on-site visits to mines with which it has an ongoing relationship along with remote assessments to review adherence with its ESG Policy and Supplier Code of Conduct and track progress made on key objectives.
As a part of our commitment to date, we have directly allocated 100% of our net weight gold purchases by volume to producers accredited by the Swiss Better Gold Association. The resulting premium totals more than USD 600,000 in the current reporting cycle. This impact premium is supporting the construction of a medical center in a mining community in Peru, of which our premium accounts for 50% of the total costs. Among others, the impact premium also supports community infrastructure and educational programs in the community surrounding the Touchstone mine in Colombia. We look forward to reporting on the impact of these projects in our upcoming reporting cycle.
A mapping of our gold value chain shows the journey it makes and the different means of sourcing employed. In order to meet our annual demand, Breitling sources from a pool of mines accredited by the Swiss Better Gold Association. In the current reporting cycle, the pool consisted of the Touchstone mine in Colombia and the MYSAC mine in Peru, both of which are Step 2 mines of the Swiss Better Gold Association and meet all Swiss Better Gold criteria. These responsible sourcing practices have been realized by key supply chain partners. MKS PAMP, in particular, developed the Touchstone mine supply chain, from which Breitling is able to source 100% of its annual production today.
In the current reporting cycle, the bulk of our Swiss Better Gold Association credit purchases are associated with the mass balance sourcing model, which facilitates traceability from the mine to refiner, as illustrated below. The Swiss Better Gold (SBG) impact premium (USD 1 per gram of gold) is reinvested to support social, environmental, and technical assistance activities approved by local stakeholders and by the Swiss Better Gold Association. In addition to the Swiss Better Gold impact premium, we have also allocated a portion of our internal carbon fund to support carbon “insetting” projects that help lessen the environmental impact of these mining operations through a discretionary contribution. More information on this may be found in the Planet chapter.
In addition to maintaining our commitment to source 100% gold from mines that meet the Swiss Better Gold Association’s criteria, we are also committing to 100% traceable gold by 2025. This is essential to establish chain of custody along the supply chain. We will build upon the precedent of the Super Chronomat 38 Origins watch to enable fullscope traceability from a selected pool of Swiss Better Gold Association Step 2 mines that meet all criteria. At the same time, we will expand our mass balance sourcing to Swiss Better Gold Association Step 1 mines that are working to achieve full adherence to the established criteria. While these mines do not yet qualify for the impact premium, we will issue a discretionary contribution of CHF 0.50 for each gram sourced. As a member of the Swiss Better Gold Association, we see great value in establishing this precedent and supporting ongoing technical assistance activities through this approach.
In addition, we are committed to sourcing 100% responsible artisanal platinum from providers that meet the Swiss Better Gold Association’s criteria in the forthcoming reporting cycle to support positive social and environmental impacts along this value chain.
We are inspired by the stories of achievement and passion from key actors along our value chain, like that of Catalina at the Touchstone mine, from which Breitling has sourced 100% of its gold supply in the current reporting cycle.
“My passion for community engagement and local economic development is brought to life every day in my role as Community Relations Manager at Touchstone. In partnership with our local community in Vereda El Pescado, the Swiss Better Gold Association, and Breitling, we are proud of our achievements to date to support clean water access and develop community support mechanisms, including local infrastructure development and educational programming. I’m excited for our work ahead and the impact we will deliver together.”
Catalina Gomez
Touchstone Community Relations ManagerDore gold from the Touchstone mine. Image source: © Breitling SA
Understanding the provenance of raw materials, goods, and services along the value chain is essential to assess sustainability performance. In order to develop our traceability and transparency capabilities, we are partnering with Sourcemap to verify relevant chain of custody and certifications along the way.
Our first product to enable this traceability, the Super Chronomat 38 Origins watch, features gold that is traceable from the mine to the watch and lab-grown diamonds that are traceable from the laboratory to the watch. The product owner is also provided with a blockchain certificate for the watch enriched with sustainability data.
“ Breitling is taking a bold first step in its industry to map the provenance of its precious materials with Sourcemap technology. Traceability is the key baseline to evidence any sustainability-related claim and forms the basis of the resilient approach Breitling is taking to do its part in contributing to the defining global challenge of our era.”
Leo Bonanni
Sourcemap, CEO
Better diamonds: Why?
Lab-grown diamonds are identical in appearance to mined diamonds and have the same physical and chemical composition. They are subject to the same rigorous quality testing.
In sourcing its lab-grown diamonds, Breitling applies the SCS-007 Jewelry Sustainability Standard – Sustainability Rated Diamonds, the first comprehensive, independent, third-party certification standard developed for the diamond sector. It establishes unprecedented benchmarks of performance and transparency across five key aspects: ESG achievement, climate neutrality, sustainable production practices with net-zero impact, comprehensive origin traceability, and sustainability investments that support vulnerable communities and further reduce net impacts. Presently, all our lab-grown producers are SCS-accredited. We aim to source 100% lab-grown diamonds for all new products and ensure each supply chain contributor is SCS-accredited by 2024.
This shift, in development since 2020, enables traceability and allows us to confidently confirm
that our lab-grown diamonds are produced free of human rights abuses. At the same time, it removes the environmental impacts of diamond mining, whether above ground or on the seabed.
To limit the environmental impacts of our lab-grown diamond sourcing, we work with our suppliers to continually improve their environmental performance, beginning with climate neutrality as a first step, and support their shift to a greater share of renewable energy in the production process. Presently, all of our suppliers source standard grid-mix electricity consisting primarily of fossil fuel and nuclear energy. In order to reduce their footprint, they are also developing on-site renewable energy generation to fuel production processes moving forward, and the Breitling carbon fund is supporting on-site solar photovoltaic installations at one of our suppliers' premises.
In addition to this, we are establishing a diamond supply chain social impact fund to support positive social and environmental impacts in communities.
“SCS Global Services has been a global leader and pioneer in setting standards in sustainability, third-party sustainability certifications, environmental and social auditing, and other factors for nearly 40 years. In 2021, we brought our vision to the global diamond market with the launch of the SCS-007 Jewelry Sustainability Standard – Sustainability Rated Diamonds. This groundbreaking certification will provide best-in-class independent assurance to Breitling customers in an industry-leading step with substantial meaning.”
Stanley Mathuram
SCS Global Services, VP
While the Super Chronomat 38 Origins watch sets a new benchmark, we are already making great efforts across our supply chain related to sustainability. The conduct of key Breitling stakeholders is guided by the Breitling ESG Policy, Supplier Code of Conduct, and Employee Code of Conduct. These are publicly available on Breitling. com and based on key international guidance and instruments, including the OECD Guidelines for Multinational Enterprises, the International Labour Organization Core Conventions, the Universal Declaration of Human Rights, and the Ten Principles of the UNGC.
In order to assess our own performance and that of our suppliers across sustainability dimensions such as labor and human rights, ethics, the environment, and sustainable procurement, both we and our key suppliers complete an annual, independent sustainability benchmarking with EcoVadis. Questionnaires are tailored to industry sectors and company jurisdiction and size and are assessed by international experts based on verifiable documentation. The results form the basis of sustainability road maps to improve performance moving ahead.
Just over 70% of our direct suppliers for case, bracelet, and movement parts by spend – those we
consider to have highest priority from a materiality perspective – have been engaged to complete a baseline EcoVadis sustainability assessment in the current reporting cycle. At the close of the current reporting cycle, 68.4% have completed their assessment and a further 2% are in the process. Our suppliers have seen value in the approach taken, as highlighted below. We will continue to engage at least 70% of our direct suppliers for case, bracelet, and movement parts by spend in sustainability on an ongoing basis. Within our own operations or suppliers assessed to date, we have not identified any significant risk of incidents of incidents of child labor or forced or compulsory labor. Breitling itself also completes an annual EcoVadis assessment and earned a gold medal for its overall performance in 2021, which is awarded to the top 5% of companies assessed globally.
Breitling works with its partners in high-risk areas to ensure that human rights are respected throughout the value chain and there is no presence of child labor. These objectives are regularly audited, including by supporting counterparts such as the Swiss Better Gold Association in the case of gold and platinum sourcing and SCS Global Services in the case of lab-grown diamond sourcing. We will continue to expand related efforts in this regard, guided by a risk-based approach.
“As the inaugural Sustainability Manager at Sellita, I have the chance to drive this subject at a key player in the Swiss watch industry. Thanks to strong collaboration with Breitling, we are able to jointly support each other in our efforts through regular exchange, best-practice sharing, and skill-building workshops. Breitling’s rollout of supplier sustainability assessments with EcoVadis helped in the development of our baseline and will continue to be a reference in our work ahead.”
Anaïs André Sellita, Sustainability Manager
Product
In order to guide our efforts, we have established key targets that also contribute to the broader agenda established by the UN SDGs. Our product pillar goals particularly address SDGs 8 – Decent work and economic growth and 12 – Responsible consumption and production through our efforts to establish responsible business practices along the value chain. Further SDGs that we contribute to in this pillar in a secondary manner through projects supported along our value chain are 4 – Quality education, 5 – Gender equality, 6 – Clean water and sanitation, 9 – Industry, innovation and infrastructure, 13 – Climate action, 14 – Life below water and 15 – Life on land.
Responsible procurement
Allocate 100% of our gold purchases to Swiss Better Gold Association gold
Allocate 100% of our platinum purchases to Swiss Better Gold Association platinum
Supplier sustainability engagement: continually engage at least 70% of our direct suppliers by spend in sustainability; integrate key indirect suppliers in FY23 as well
Traceability
Achieve 100% traceable gold by 2025 to support product integrity
Source 100% lab-grown diamonds for all new products and ensure each supply chain contributor is accredited under SCS-007 Jewelry Sustainability Standard –Sustainability Rated Diamonds to ensure product integrity and traceability
Sustainability performance
Achieve EcoVadis platinum medal (top 1% globally)
Improve the overall EcoVadis performance for suppliers by 15%
In order to provide transparency in our sourcing practices, we have established our own reporting metrics focusing on the sourcing of gold, tungsten, tin, and tantalum (3TG) minerals, platinum group metals (PGM), gemstones, and other key materials. Breitling sources low volumes of these materials. While this subject is not a part of the WEF IBC core metrics, conflict minerals are an important topic, for which issues like child labor, human rights, or modern slavery could arise. Our due diligence and engagement activities will continue to focus on these aspects, along with the environmental impacts of these industries. Based on our risk assessments performed to date, we conclude that we do not have significant risk in terms of child labor or human rights as a result of related sourcing and supply chain activities.
In the current reporting cycle, we worked with the following refiners for the purchase of gold and platinum group metals: Argor Heraeus [accredited by the London Bullion Market Association (LBMA) as a Referee and Good Delivery refiner and the London Platinum and Palladium Market as a Referee and Good Delivery refiner, Swiss Better Gold Association cofounding member); Metalor (accredited by the LBMA as a Referee and Good Delivery refiner, Swiss Better Gold Association cofounding member); MKS PAMP (accredited by the LBMA as a Referee and Good Delivery refiner, Swiss Better Gold Association member; PX Precinox (accredited by the LBMA as a Referee and Good Delivery refiner, Swiss Better Gold Association member); and Varinor. Each refiner holds Responsible Jewellery Council Chain of Custody and Code of Practices certification.
Tungsten, which is used in our oscillating weights, has been sourced by a tier 1 supplier from two responsible raw material sourcing counterparts, both of which apply key frameworks of the Responsible Minerals Initiative, such as reporting according to the Conflict Minerals Reporting Template and being RMAP conformant. Additionally, a trace amount of tantalum can be found in our quartz movements and a trace amount of rhodium is added in the production of some components. To our knowledge, no tin is contained in our products.
Further platings of precious metals and metals used in the production process may not be accounted for in the volumes reported below.
In the current reporting cycle, the only gemstones sourced by Breitling have been diamonds. Breitling suppliers of mined diamonds have confirmed that all have been procured in accordance with the Kimberley Process Certification Scheme and the World Diamond Council System of Warranties. 100% of lab-grown diamonds purchased have been produced by suppliers accredited under the SCS-007 Jewelry Sustainability Standard – Sustainability Rated Diamonds.
We’re reducing our environmental footprint by working to achieve fewer emissions across our value chain, shifting to clean energy, and eliminating plastic waste.
Identifying and mitigating the environmental effects of energy usage, natural resource consumption, and waste along our value chain.
Limiting our impact on the climate by accounting for and managing our emissions and setting environmental targets.
Image source: © Breitling SA
In the current reporting cycle, we have prioritized the launch of key pilot projects to reduce emissions along our value chain and develop data collection infrastructure for reporting on our impacts and evidencing reductions over time. These are aspects that are important when it comes to maintaining our commitment to reducing carbon emissions and enabling product-level carbon disclosures that build on the product carbon footprint we completed in the last reporting cycle.
We have also engaged key suppliers to conduct their own carbon accounting and reduction strategies. In our gold value chain, which accounts for the majority of our indirect, or Scope 3, emissions, we have informed the first comprehensive environmental life cycle assessment of selected Swiss Better Gold
Association producers focusing on climate, biodiversity, and water impacts. We see the potential to have a greater net environmental impact and positive footprint through supplier engagement and because of the social impacts we can realize through cooperation. We have seen firsthand the care taken for environmental resources on-site, including the cessation of exploration activities at night, which supports nocturnal wildlife, and a range of rehabilitation efforts following the completion of mining activities.
We have switched to 100% renewable energy for electricity across our HQ operations and will continue to shift our supply globally. In the upcoming reporting cycle, we will also switch to 100% biogas across our HQ buildings and production facilities.
In our last Mission Report, we established our goal to eliminate plastic waste across our operations by 2025. Our work to address this is well underway, and key activities include establishing a baseline measurement of plastic waste generated and engaging key stakeholders to develop means to mitigate waste through removal, replacement, and recycling.
In the first year of our initiative, we reduced plastic waste by 34% from a baseline of approximately 7 t compared to what would have been generated without our interventions. We have engaged key stakeholders – employees interfacing with the bulk of our plastic waste generation, suppliers of plastic components, and partners working to identify plastic waste alternatives – in a Plastic Waste Reduction Action Plan (WRAP) launch event. This was held in collaboration with collaboratio helvetica and Let’s Talk Waste , two organizations leading the way in Switzerland to support systemic change and social innovation related to the UN
SDGs. As a result of this, we were able to measure an increase in understanding of the topic by all participants. Key takeaways were that our employees want to be a part of our efforts going forward and see cross-departmental and external collaboration as essential to driving results. On the same day, we also launched the release of Breitling water bottles to all our employees globally to reduce single-use plastic waste. This achievement builds on our work to date to address plastic waste, including our upcycled packaging, which was awarded the Climate Love award from the We Don’t Have Time community in 2021.
“At the plastic waste reduction launch event I learned how to limit my own plastic waste with top input from our facilitators to develop tangible next steps.”
Chrystelle Flour Breitling, Methods and Industrialization Technician
FY23 Interventions will focus on plastic removal
34% OVERALL PLASTIC WASTE REDUCTION FY23 Interventions are being defined with stakeholders
• FY23 Interventions will focus on plastic recycling
• Removal of plastic packaging for components received from suppliers and for watch shipments (105
”Breitling is fundamentally engaging its key stakeholders to cocreate plastic waste reduction pathways that are designed to implement a robust strategy to achieve its target to eliminate plastic waste by 2025.“Julia Bodin
The current reporting cycle saw us deploy the carbon fund established to offset FY21 emissions to develop carbon-insetting projects along our value chain and to support carbon-offseting projects and regions experiencing environmental catastrophe. Breitling’s carbon fund continues to be expanded, and those FY22 emissions that are reported on herein will be
offset in full across Scope 1, Scope 2 and Scope 3 in the course of the upcoming reporting cycle. At the same time, we will revise the shadow price on carbon (CHF/TCO2E) for FY22 emissions to CHF 40, following the minimum pricing guidance of the Carbon Pricing Leadership Coalition (Note: at the time of publication, USD/CHF approximate parity prevails).
As announced in our 2021 report, we began piloting our approach to carbon insetting along the value chain in the current reporting cycle with two key projects. The first was launched with the Touchstone gold mine in Colombia, from which we purchased 100% of their annual supply in the current reporting cycle. This project focuses on the replacement of electrical grid lines that decrease reliance of the mine on an on-site diesel generator, especially during the rainy seasons. Breitling financed just over half of the costs of this project and, in the future, intends to be a minority investor in any carbon-insetting projects it supports.
Our FY22 emissions will be offset in full in the FY23 reporting cycle by purchasing high-quality offsets.
These follow our established criteria to ensure they are net-negative, additional, and enforceable. They are subject to scientific verification by an independent expert. In their execution and outcomes, they must also achieve intersectional justice.
In addition, we have purchased sustainable aviation fuel (SAF) for all business-related flights operated by SWISS, beginning retroactively for the entire 2022 calendar year. With the purchase of the respective amount of SAF, we reduce flight-related CO2 emissions by 80%, offsetting the remaining CO2 emissions through investments in highquality carbon offsets.
Our second insetting project was launched with a supplier of lab-grown diamonds to shift their energy supply to renewable sources. As this supplier currently relies on grid electricity based on fossil fuel sources, the shift is expected to have a meaningful impact on related emissions and is part of a larger effort to reduce their carbon footprint, in addition to their existing approach to carbon neutrality through offsets. In this project, Breitling is a minority investor, contributing approximately 10% of the overall project cost.
To offset our emissions, we have purchased credits from the Concosta REDD+ Project in Colombia, which seeks to prevent unplanned deforestation and degradation. This project mitigates climate change, protects rich biodiversity, and generates sources of income for struggling communities
through forest governance, capacity building, and productive activities that will prevent selective logging of native forests, avoiding degradation and deforestation.
To support communities that have experienced environmental catastrophe, we, together with our partner SUGi, developed a plan for the rewilding of Oinofyta, near Athens, which was strongly impacted by the 2021 summer wildfires. Together with SUGi and the local community in Oinofyta, Breitling redeveloped one of the most severely affected areas - an oak forest restoration project, planting a mix of native oak saplings and a symbiotic blend of other indigenous species –over 2,000 trees and shrubs of 16 native species across the 10,000-m2 site. This project will be a catalyst to repair some of the wildfire damage.
“At Touchstone, environmental protection is a key consideration in our approach to responsible ASM. Our commitment encompasses carbon reduction, water management, conservation of biodiversity, and a range of other aspects. In Breitling, we have found a partner with the same objectives and are proud to have launched our pilot carbon measurement and insetting project at the start of 2022 in cooperation with the Swiss Better Gold Association. We’re looking forward to building on this strong precedent together.”
Juan Gabriel Gonzalez Touchstone, CEO
We will continue to prioritize these key areas of support by the Breitling carbon fund and review further activities as relevant to support meaningful efforts related to climate change.
Elena Dedoussi Breitling, Marketing Manager Greece“Through our corporate volunteering event in collaboration with SUGi, I was able to make a meaningful contribution to our local community that was impacted by the devastating wildfires of 2021. I look with pride and hope upon this area, which is now richly reforested with native species.”
Our approach to climate change management is based on a step-by-step, cyclical process of measuring, mitigating, and neutralizing the environmental impacts along our value chain.
In order to effectively govern our approach to climate change, we are implementing the recommendations of the Taskforce on Climate-Related Financial Disclosures (TCFD), which has developed disclosure recommendations to promote informed investment decisions and enable understanding of exposure to climate-related risks. Breitling has implemented the majority of the TCFD recommendations and will complete implementation within two years’ time across the four pillars of governance: strategy, risk management, metrics, and targets.
TCFD-related activities inform the deliberations of the ESG management at Breitling, including the Board of Directors. In our 2021 enterprise risk inventory, climate change was included in sustainability area risks, which are assessed overall as a medium risk. A dedicated sustainability risk assessment, detailed in the Prosperity chapter, has identified climate change as a low risk, but the related subject of environmental impacts along the value chain as a high risk. Considering this assessment, we have committed to reducing our carbon footprint in
line with the Science Based Targets Initiative (SBTi), which defines best practice in emissions reductions aligned with climate science and the goals of the Paris Agreement. We intend to reduce 100% of our Scope 1 and 2 emissions in line with the 1.5°C scenario. To address our Scope 3 emissions, we will engage our suppliers to set science-based targets and work together to implement key insetting projects, such as those detailed herein, to reduce our impact.
To measure our progress related to climate and environmental impact, we will continue to report annually to the Carbon Disclosure Project (CDP). All our emissions values, including the applied calculation methodology and emissions factors, are in line with the requirements of the Greenhouse Gas Protocol. For more information, please refer to documentation available in our ESG Policy. In our baseline submission issued in the current reporting cycle, Breitling received a D grade. While this result is on a par with firstyear results, Breitling is committed to improving. Key measures we will be working on to do so include expanding the scope of our emissions measurement, disclosure, and assurance, validating our SBTi targets, and further engaging our suppliers in reducing carbon emissions.
“At MKS PAMP, environmental and social performance drive our selection of business partners, as it has in our creation of an upstream gold supply chain for Breitling. Our commitment is enshrined in our recently validated science-based targets, through which we aim to shape the future of responsible gold sourcing.
”
Tamara Jomaa-Shakarchi
MKS PAMP, Head of ESG
A shared passion for sustainability is the basis for the partnership between Breitling and Bertrand Piccard’s Solar Impulse Foundation. Breitling has a proud history with Piccard. In March 1999, Piccard completed the circumnavigation of the globe in Breitling Orbiter 3 wearing a Breitling Emergency on his wrist. Piccard remains active with Breitling as a member of the Breitling Explorer Squad.
The premise of Solar Impulse Foundation is that climate change can be tackled most effectively through the lens of profitability. In April 2021,
the foundation reached its goal of identifying 1,000 solutions that are profitable for both the environment and our economy by reducing CO2 emissions, pollution, and the use of resources while at the same time creating jobs and growth. The Solar Impulse Efficient Solution Label is the only evaluation available today that certifies the economic profitability of products and processes that protect the environment. It is awarded following a rigorous evaluation process carried out by a pool of independent experts. In 2021, Breitling’s new sustainable packaging was named as one of the 1,000 solutions that can protect the environment in a profitable way.
Breitling is proud to support SUGi, the only platform that focuses on biodiversity building and rewilding in urban environments, and which offers a sustainable, scalable, and successful framework for addressing ecosystem loss while generating employment by empowering indigenous communities.
Since launching in May 2019, the team has created more than 126 SUGi Pocket Forests (200,000 trees) in 26 cities globally. SUGi is an inaugural member of the Trillion Tree Initiative, launched by the WEF in 2020, an Official Supporting Partner of the UN Decade on
Since partnering with SUGi in 2020, Breitling has planted 18,500 trees, restoring approximately 195 native plant species on 14,700 m2 across ten forests in seven countries. SUGi’s founder, Elise Van Middelem, describes her organization’s work this way: “SUGi is uniquely focused on giving communities the opportunity to transform abandoned sites, landfills, parking lots, and waterways into ideal habitats for birds to nest, for fruit to grow, for fresh air, and for the magic of nature to thrive.”
Ocean plastic pollution is ubiquitous. We have worked to raise awareness of this topic and are proud to support Ocean Conservancy, which has organized tens of thousands of coastal cleanup events for more than 35 years in 153 countries.
Since 1986, more than 17 million people have picked up nearly 350 million pounds of trash as part of Ocean Conservancy’s International Coastal Cleanup. Our employees play an active role in some of Ocean Conservancy’s initiatives by participating in its cleanup programs to protect the health of the ocean and work toward trash-free seas.
Planet
In order to guide our efforts, we have established key targets that also contribute to the broader agenda established by the UN SDGs. Our planet pillar goals specifically address address SDGs 8 – Decent work and economic growth,12 – Responsible consumption and production and 13 – Climate action through our efforts to reduce our environmental impact and support responsible business practices along the value chain. Further SDGs that we contribute to in this pillar in a secondary manner are 14 – Life below water and 15 – Life on land.
Climate action
Achieve CDP A List status
• 100% of our Scope 1 and 2 emissions will be reduced in line with the 1.5°C scenario
• To address our Scope 3 emissions, we will engage our suppliers to set science-based targets and work together to implement key insetting projects to reduce our impact
FY22 End of FY23 On track: with the improvements we’ve made to GHG data collection in the current reporting cycle, we are on track to submit our request for SBTi target validation and have already started engaging our suppliers on the topic of GHG reduction
CAchieve carbon neutrality on all measured emissions FY23 Commitment henceforth N/A
100% renewable energy procurement globally
100% renewable energy procurement for electricity globally
FY22 End of 2025 On track: we will engage global operations in the upcoming reporting cycle to establish our road map for this target
100% biogas at HQ and production FY23 End of 2023
Generate zero plastic waste across operations by 2025
• By working with our suppliers and all our stakeholders to create circular solutions, identify plastic alternatives, and shift our consumption patterns, we will eliminate plastic waste across our operations
FY22 End of 2025 On track: we avoided 34% of plastic waste and engaged key stakeholders, including through the Plastic WRAP launch event
We have continued to improve our approach to environmental impact measurement in the current reporting cycle. We consider measurement as the cornerstone of all forthcoming efforts to manage and mitigate emissions, which will be a meaningful challenge for us in the context of ongoing business growth. This growth, an extended carbon-accounting scope, and a return to normal business operations in the last reporting cycle have contributed to an increase in emissions in the current reporting cycle.
The following are the measures we have taken to improve our carbon accounting. A survey including a representative number of randomly selected employees has been used to calculate an average Breitling employee commuting emissions factor. The main mode of transportation, number of working days, and average distance traveled were the key factors assessed. GHG emissions, provided directly by our different downstream logistics suppliers, now include the United States and Canada in the scope. Our purchased goods impact for artisanal and small-scale gold has been calculated with a spend-based method and primary data on carbon emissions provided by mines accredited by the Swiss Better Gold Association and from which we source. Our watch component carbon footprint has been calculated with a spend-based method, while our furniture, visual merchandising display, packaging, and gifts carbon footprint has been calculated with an average-data method.
The emissions listed above are included in the assurance scope.
Note: figures included in 35 t of waste emissions noted above, reported here as well for clarity.
We keep improving working conditions for all the people in all our squads. Key measures to do so include achieving equal pay certification, taking tangible action on the UN SDGs, and providing training, coaching, volunteering, and overall better opportunities. We’re transforming working together as a squad. At Breitling and with our partners.
Providing training, development, and
for employees and engaging them in our sustainability journey.
Promoting fairness throughout our business, building awareness of unconscious bias, and championing diversity through inclusive employment practices.
Ensuring customer satisfaction through prioritizing privacy, security, and attentive service while engaging responsibly in public relations, lobbying, marketing, and advertising.
In 2021, Breitling launched its first global employee engagement survey. Starting in March 2022, the employee feedback process has been upgraded, now with quarterly feedback surveys that take less than ten minutes to complete while still covering all aspects of employee engagement.
The first of these quarterly surveys achieved a participation rate of 85% worldwide, which is consistent with the engagement rate of the prior year and highlights the willingness of our employees to contribute to the ongoing improvement of our company. In our latest quarterly survey in March 2022, which focused on high-performance culture, we achieved an engagement score of 72%, with top scores for high expectations for our employees. While the overall engagement score is two points lower
than our baseline survey conducted in 2021, it is roughly in line with the drop of one point in the top 20% of the global benchmark. We increased our focus on the long-lasting and sustainable improvement of employee engagement and decided to move the target of reaching the top 20% of the global benchmark to 2025.
Key aspects to improve performance moving ahead include support for personal and professional growth though Breitlingsponsored training and strengthening of the company culture. Future survey cycles will review management and leadership quality, sustainability, and inclusion, as well as teamwork. Using this holistic approach, we believe that we will address the key fundamental aspects that positively impact and influence engagement and company performance.
“At Breitling, I feel that I am part of a team offering substantial growth opportunities and a whole new energy to how people connect with our watches for a lifetime.”
Joelle Valenzuela Breitling, Training Specialist
To build upon the strong employee sentiment of belonging at Breitling, we focused our efforts in the current reporting cycle on assessing our performance in equal pay and established clear targets to guide our work in this area moving forward. We launched an equal pay survey at our HQ and confirmed no statistically relevant difference in pay between men and women and have successfully audited this result in the current reporting cycle (please see the Assurance chapter for further information). This will be expanded globally as well.
To make this achievement a lasting one, we continue to conduct ongoing salary benchmarking in salary review rounds, and a similar equal pay survey will be conducted in our markets moving forward. To further develop our capacities to support diversity and inclusion in the workplace, we are continuing to identify the best options to offer employees involved in hiring and succession processes unconscious bias training.
For the second year in a row, Breitling is proud to be recognized as one of Switzerland’s Best Employers 2022 in the survey conducted by the Handelszeitung, Le Temps, and Statista. In 2022, Breitling was ranked in the top five for the 2022 “Best Employer Award” and reached third place in the “Watches/jewelry” segment in a Swiss-wide study done by Statista, Le Temps and the Handelszeitung. This study considers the opinion of more than 200,000 salaried people in Switzerland and comprises an extensive analysis on a range of topics. In the two most challenging years, we moved up from #9 to #5 in the overall ranking of best employers in Switzerland. This accolade was made possible through the hard work and commitment of all our teams, and we thank them for their continuous efforts in making Breitling one of the best employers!
Using our voice to amplify sustainability topics is a key opportunity for Breitling and its stakeholders. In the current reporting cycle, we launched our corporate volunteering program at our HQ in Switzerland. We have also seen ongoing global uptake of our policy to offer each employee one day of paid leave per year to spend in nature in order to better connect with the environment (and during which they
are encouraged to offer their services to the environment) and one day of paid leave to spend on corporate volunteering projects. In the current reporting cycle, we exceeded our target of achieving 500 hours of corporate volunteering in our first year of programming. Moving ahead, we will continue to expand our sustainability engagement offerings to raise the awareness and passion of our employees and support transformative capacities.
SUPPORTING
Together with the Forest Stewardship Council (FSC) and our local forestry offices, we have made a positive impact on the health of our local forests and enhanced our knowledge about responsible forest management. This included the cleaning of forest edges, improvement of walkways, removal of
invasive species, and planting of young trees in our local communities in Switzerland. By engaging our employees in these tangible activities, we have been able to move sustainability from awareness to action and beyond and strengthened our squad through nature-based team-building activities.
THE HEALTH OF OUR LOCAL FORESTS IN COOPERATION WITH OUR LOCAL FORESTRY OFFICES AND THE FOREST STEWARDSHIP COUNCIL
“ The Forest Stewardship Council, or FSC, promotes environmentally appropriate, socially beneficial, and economically viable management of the world’s forests. By engaging their employees in dedicated corporate volunteering events, Breitling has demonstrated their shared commitment to these objectives and to their local forests, a commitment which is extended to their sourcing principles, in which Breitling is working to secure the supply of FSC-certified products.”
“Breitling promotes sustainability by offering us corporate volunteering days directly in our regions, at the local level. As an employee, I feel involved in the sustainability of our ecosystem and better understand the importance of our environment while learning about the complexity of sustainably managing our local forests.”
Aldric Jarry Breitling, Project Manager of Industrialization – MESA key outcome of the engagement survey was our employees’ call for more personal and professional development opportunities. We listened and started in November 2022 with a three-pillared approach. The first consists of an e-library with bite-sized learning content around general business and individual self-improvement topics, which is available to all employees. The second provides access to Coursera for Business
for the majority of the office population. This provides world-class content on a range of skill-building topics from leading universities, with the opportunity to obtain externally accepted certificates. The third consists of individual online coaching in collaboration with the leading provider CoachHub for 60 high-potential managers and newly appointed managers, giving them access to regular virtual coaching sessions over a six-month period.
Breitling works with insurance brokers across all of its markets to ensure that employee benefits in terms of medical and health-care services are on a par with benchmark comparators/ companies or better. For example, at our HQ,
where a large share of Breitling’s workforce is employed, Breitling provides non-occupational accident coverage with its insurance partners that is above the legal minimum and in-line with the benchmark.
People
In order to guide our efforts, we have established key targets that also contribute to the broader agenda established by the UN SDGs. Our people-related pillar goals specifically address SDGs 5 – Gender equality, 8 – Decent work and economic growth and 12 – Responsible consumption and production. Further SDGs that we contribute to in this pillar in a secondary manner through our global corporate volunteering activities are 14 – Life below water and 15 – Life on land. Objective
Stakeholder engagement
Top 20% of the global benchmark in the Glint Engagement Survey
500 hours of employee corporate volunteering
20,000 hours of stakeholder sustainability engagement over three years
Diversity and inclusion
No statistically significant difference in pay between men and women globally
FY22 2022: timeline updated to 2025
Below target: timeline revised
FY22 2022 Exceeded: 544 hours in FY22
FY23 End of 2025 N/A
FY22 End of 2024 On track: achieved at HQ with assurance
Training
Allocate funds equivalent to 1% of salary spend to training
FY22 End of 2024 On track: first launch of general training and coaching program in 2021
Pay equality (HQ only at this time; review will be expanded globally)
No statistically relevant difference in pay between men and women in Switzerland according to the Swiss federal government’s Logib standard analysis tool (assured)
No statistically relevant difference in pay between men and women in Switzerland according to the Swiss federal government’s Logib standard analysis tool
We’re creating shared value with the communities that are part of our journey. Through better innovation and community contributions, we’re transforming how we give back.
Ensuring customer satisfaction through prioritizing privacy, security, and attentive service while engaging responsibly in public relations, lobbying, marketing, and advertising.
Ensuring the resilience of our supply chain and long-term business plan by addressing social, environmental, and political issues.
Supporting our communities Breitling supports a range of organizations providing contributions to social and environmental challenges. In the current reporting cycle, we have also provided financial support to a range of institutions providing support services in Ukraine, including the International Committee of the Red Cross, CORE Response, Doctors without Borders, and Save the Children. Breitling has also supported the rental and furnishing of four apartments in Switzerland and Austria to house Ukrainian refugees.
In the current reporting cycle, Breitling has also supported the Breitling Aviation Scholarship in cooperation with the Aircraft Owners and Pilots Association, which finances complete pilot training for young people in the
Our employees themselves have acted to support refugees, including offering their own homes. Breitling in turn supports these individual efforts by offering paid time off from work for any related needs that may arise as a result of engagement.
Through our welfare foundation, CHF 3.7 m is available to be disbursed to employees in cases of hardship. In the current reporting cycle, four active recipients benefited from the fund.
USA. In the current reporting cycle, a scholarship was awarded to Alaina Arnold, who has dedicated her life to protecting her community and her country through local and federal law enforcement service. Alaina has a distinguished career focused on at-risk communities
and hopes to use aviation as an avenue for serving her community and connecting with and inspiring at-risk young people. This is just one example of numerous philanthropic activities carried out in Breitling markets globally.
Breitling Aviation Scholarship“
This pursuit, this lifelong aspiration is made possible by Breitling’s support. From the moment I took to the sky on my first discovery flight, I knew this was something I was meant to pursue. I think of all the exceptional contributions pilots make to their communities, and I hope to further those efforts.”
Alaina Arnold
Recipient
Partner highlight: Qhubeka and Breitling: Moving people forward with bicycles
Breitling’s history as an official timekeeper at some of the world’s top cycling events has made us true believers in the power of bicycles. This simple and effective form of transportation can literally transform lives. That’s why we’ve partnered with Qhubeka. The South Africabased organization supplies bicycles to remote communities with limited transportation options, giving residents the means to access schools, clinics, and jobs. Our annual participation in the Old Mutual Wealth Double Century race with our Triathlon Squad and global network of pro cyclists supports Qhubeka’s work through corporate donations, participant fundraising, and the sale of special-edition Breitling Colnago bikes.
In 2021, Qhubeka took its mission even further. Recognizing the high dropout and exam failure rates among South African students (fewer than 50% completed 12 years of education with a pass grade), Qhubeka accelerated distribution to eleven schools, supplying a bike to every child in their final two years. After only one year of
reducing the transportation burden for these students, Qhubeka recorded pass rate increases of up to 47%, and dropout rates were down by as much as 100%. Pilot projects like this are just the beginning. Qhubeka distributed over 4,000 bikes in 2021 and is set to grow in 2022. Breitling will continue to support the organization in giving children better access to education while bolstering communities through the power of bicycles.
“
The best thing about my bicycle is that it helps me to go to school. I now have more time to read, rest, and study and get to school on time.”
Breitling is a local brand, and in the current reporting cycle, we have continued to strengthen our market proximity. Next to our core activities, we have developed the brand in key local markets, developing a locally inspired food and beverage offering in Seoul, which will be expanded upon moving forward. We have released key product availability innovations, including Breitling Select, which allows you to try three watches in rotation from a unique
selection of watches and select the one you like, with special purchase offers made available. At the same time, we have made boutique stock available for online purchase to further increase product e-commerce availability. Our aim is to build upon these achievements to continue to develop customer-relevant innovation, including in sustainability, and further advance the benchmark set by the release of the Breitling Superchronomat 38 Origins watch.
We’ve tied three key sustainability targets to our first ESG-linked loan. The interest rate for the new facility will be subject to an annual adjustment based on the achievement of specific sustainability goals. These relate to overall sustainability performance, climate action, and plastic waste elimination. The first target will assess our progress on our own EcoVadis assessment across the topics of the environment, labor and human rights, sustainable procurement, and ethics. Our steps taken to validate our science-based targets constitute the climate action target. Efforts to eliminate plastic waste form the final target. This achievement reflects our commitment to sustainability and will allow us to benefit from our efforts by reinvesting the resulting proceeds in related activities.
Through our operating costs, we directly create value for our suppliers along the value chain, from raw material sourcing to
selling and distribution, rent on boutiques, capital expenditures, retail development, logistics, advertising, and promotion. Our capital structure includes debt on which we pay interest, generating income in the process. In the current reporting cycle, our contributions to the Swiss Better Gold Association, which support the improvement of working and living conditions in ASM, are included in our reported total social investment expenditures, along with our philanthropic contributions and payments made to key partners, including Qhubeka, SUGi, Ocean Conservancy, and the Solar Impulse Foundation.
We are committed to complying with all applicable tax laws and regulations without exception. While we aim to be efficient when it comes to tax, we do not enter into any artificial arrangements and do not undertake aggressive tax planning.
”
We believe
the responsible management of environmental, social, and governance (ESG) matters is a core part of long-term, sustainable value creation of CVC portfolio companies. Through its product innovation, alignment to key international climate frameworks, stakeholder sustainability engagement, and transparent reporting, we are impressed by Breitling’s progress over the last few years and believe that the company is well positioned to capture the opportunities presented by the ESG agenda.“
Jérôme Luciat-Labry Partner, CVC Capital Partners and Chairperson, Breitling Board ESG Committee
Our corporate growth pathways are guided by relevant risk management frameworks. Risk management is overseen by the Breitling Board of Directors and management, including the determination of risks acceptable to the organization and mitigation measures, while further responsibility is devolved to operations to foster accountability among those who operate closer to potential risks.
Risk management is evaluated by an independent internal audit function, which monitors the design, efficiency, and effectiveness of internal controls. This fosters a clear view of the residual risks remaining after our efforts to mitigate them. We employ the ISO 31000 Risk Management framework and a risk management maturity model based on this standard.
We consider sustainability risks from both direct operations and the supply chain in
•
our management- and Board-level risk assessment processes. In our most recent risk assessment, digital technology is seen to be a high-risk area, replicating an upward shift of handling of data in our more recent materiality assessment. Supply chain disruption is also perceived to be a high risk. International operations, finance, and marketing topics are seen to be of medium risk. Administration topics are generally seen to be of low to medium risk.
Sustainability and ESG has been assessed as a medium risk. In our 2021 materiality assessment refresh, which, as indicated in our prior report, engages internal stakeholders on an annual basis and both internal and external stakeholders on a triennial basis, we also asked participants to share their perception of the risk in each material topic area, as illustrated below.
•
•
•
• Customer and community engagement
• Climate change
• Business model resilience
• Social impacts along the value chain
Reflecting the upward shift in the material topic responsible handling of data, which is detailed in the Introduction chapter of this report, this is also the material topic perceived to have the highest degree of risk. As with our materiality assessment, stakeholders view the relative risk of environmental impacts along the value chain and climate change with quite some difference
• Responsible handling of data
and have noted in prior inquiries that the former feels more within our sphere of influence. Both customer and community engagement and diversity and inclusion veer from the materiality ranking into lower levels in the risk assessment. In this iteration, no complementary question on opportunity was posed, but it could be for subsequent versions.
We’re sharing our progress with everyone. Through better reporting and better standards, including being the first in the industry to report according to the WEF IBC Stakeholder Capitalism Metrics, we’re enabling better transparency and transforming how we report on our progress.
Addressing ethical and legal issues including internal controls, transparent management practices, and ensuring no fraud, corruption, bribery, or anti-competitive behavior.
Adopting best practices when it comes to the use of online data, ensuring security and customer privacy.
Our double materiality assessment forms the basis for identifying and prioritizing material topics, which are duly managed to assess progress. More information on this is available in the Introduction chapter. Our sustainability strategy and targets are defined by the CEO and executive management and reviewed by the ESG Committee of the Board of Directors. Our sustainability performance against targets is measured with key performance indicators that are reviewed together with the progress on key initiatives and ESG topics at least quarterly by management and the ESG Committee, which in turn reports to the Board after each meeting – these happen on a quarterly basis or more often as needed. The chairman of the ESG Committee has responsibility for ESG topics, including climate change, at the Board level, whereas the Chief Administrative Officer manages ESG topics on the executive management level. The Global Head of Sustainability is a dedicated senior management position and responsible for formulating and implementing our sustainability road map and initiatives. The role is further supported in the department by a sustainability specialist and a sustainability trainee, along with numerous horizontal collaboration partners across the organization.
Our Group’s parent operating entity, Breitling SA, is overseen by our Board of Directors, which approves Breitling’s global strategy and major business initiatives and is responsible for the overall direction, development, and supervision of the Group and its management. The Board has established three Board committees: the Audit Committee, the ESG Committee, and, since April 27, 2022, the Nomination and Compensation Committee.
Board members have expertise in finance and banking, operations, manufacturing, brand strategy, licensing, marketing, product design, omni-channel, customer engagement, business development, digital innovation, e-commerce, mergers and acquisitions, ESG topics, human resources, governance, legal, compliance, general management, and leadership, among others, across a wide scope of B2C and B2B in luxury and other industries. The Board is made up of five shareholder representatives and one independent Board member, all of whom are non-executive. Currently, women make up 17% of the Board, and 34% of Board members are between 30 and 50 years old, with 66% above 50 years of age.
Dr. Daniel Pindur, chairman since December 17, 2021, Audit Committee, Nomination and Compensation Committee since April 27, 2022 (since 2017, vice-chairman until December 17, 2021, chairman of the Audit Committee from 2018 until January 26, 2022, PhD in Finance, German, 44, male), is a managing partner at CVC Advisers (Deutschland) GmbH with previous positions at Goldman Sachs and at Sunrise Communications as CFO (other board memberships include Douglas, Messer Industries, ironSource Mobile, DKV Mobility Services, and chairmanship at Tipico).
Alfred Gantner, vice-chairman since December 17, 2021 (master’s in Business Administration and Management, Swiss, 53, male), is a cofounding partner and executive member of the board of directors of Partners Group Holding AG (chair of the investment and oversight committee, member of the strategy committee) with previous positions as executive chairman and CEO as well as chairman of the global investment committee of Partners Group, and at Goldman Sachs (other current board memberships at PG3, Kompass Association, Confluent Health, and Fermaca).
Dr. Alexander Dibelius (since 2017, chairman from 2018 until December 17, 2021, PhD in Medicine, German, 62, male) is a managing partner at CVC Advisers (Deutschland) GmbH and was a partner at McKinsey and Goldman Sachs (other current board memberships at KION Group, Diebold Nixdorf, Douglas, Messer Industries, Syntegon, ironSource Mobile until June 29, 2021, DKV Mobility Services, and Tipico).
Jérôme Luciat-Labry, chairman of the ESG Committee (since 2017, master’s in Engineering, French/Canadian, 53, male), is a partner at CVC Capital (Benelux) and held VP positions at Schlumberger, was a partner at McKinsey, chief marketing officer and then chief commercial officer of GE Oil & Gas, CEO of Lufkin, and president of GE Well Performance Services (other current board memberships at Syntegon and Panzani since January 1, 2022).
Can Toygar, chairman of the Audit Committee since December 17, 2021 (since 2017, master’s in Business Administration and Management, German, 39, male) is a managing director at CVC Advisers (Deutschland) GmbH and was previously with J.P. Morgan (other current board memberships at Douglas, Messer Industries, and Syntegon).
Dr. Christian Wenger, ESG Committee (since 2017, PhD in Law, Swiss, 57, male), is a partner at Wenger & Vieli AG and founded Swiss Startup Invest, BlueLion Incubator, and digitalswitzerland (member of the steering committee); chairman of the Board of Trustees of the UZH University of Zurich Foundation, chairman of Swiss Entrepreneurs Fund, member of the Foundation Board of Zoo Foundation Zurich, and member of the patronage committee of the ROKPA Support Foundation (other current board memberships include chairmanship at Aevis Victoria, SIGNA Retail Selection, and UCC Immobilien, and membership at Chemolio Holding, Hempel Special Metals, Trisport, UCC Holding, and Xeltis).
Changes after March 31, 2022: Resignation of Dr. Christian Wenger on April 4, 2022 and election of:
Luisa Deplazes de Andrade Delgado, chair of the Nomination and Compensation Committee, ESG Committee (since April 27 2022, master’s in Law and postgrad diploma in European Studies, Swiss, Portuguese, 55, female), is an entrepreneur and investor with extensive international executive and board experience as CEO of Safilo Group, executive board member and CHRO at SAP, and General Manager Nordic and HR VP Western Europe at Proctor & Gamble, and a previous board member at , among others, AO World and ARYZTA (current other board memberships include chair at Swarowski and Schleich, and membership at Ingka Holding (Ikea), DIA Group, Barclays Bank (Suisse), Telia, and Fortum).
Anti-corruption Breitling has zero tolerance for corruption. The Breitling Employee Code of Conduct and international Speak Up hotline, Breitling’s key anti-corruption policy and procedure, are made available to all employees. Each employee worldwide has been trained on both tools and provided with quick reference documentation. In order to continually engage employees on these tools, ongoing communication measures are planned to raise awareness.
Proactive measures that Breitling takes in order to mitigate the risk of corruption include thirdparty due diligence and detailed processes for executing corporate deals and ensuring adherence to all sanctions lists.
“At Partners Group, we seek to drive sustainability at scale and build better and more sustainable businesses. Through its efforts, Breitling mirrors our approach within its sphere of influence and is transforming its sustainability performance to be an impact leader. Breitling’s promising trajectory will deliver value across stakeholder groups.”
We comply with relevant global regulatory frameworks (e.g. the GDPR, ePrivacy Directive, Swiss FDPA, and FDPO) and apply the most rigorous regulations available to our global activities through the rollout of data protection policies and training. We have a centralized data protection officer with an experienced external partner, and all Group companies have a local representative for data protection topics.
We collect consent for the processing of customers’ personal data in a clear, informative, and explicit manner. We require a double opt-in for Breitling communications – including e-mail verification - and our data management system prohibits mass exports. Customer data is neither sold nor communicated. It is always possible to checkout as a guest, and there are always unsubscribe buttons in our communications. The Breitling call center can delete customer records upon request. During the current reporting period, we had no breaches of customer privacy that needed to be escalated to a supervisory authority.
Information and cybersecurity is a top priority at Breitling. We follow best-practice guidelines for
cybersecurity aligned with the Center for Internet Security (CIS) framework defining the critical security controls for effective cyberdefense. Those controls cover prevention, detection, and response to cyberthreats. Multiple security controls have been implemented on the consecutive lines of defense following the defense-in-depth (DiD) principals. Monitoring is ensured with a specialized 24/7 Security Operations Center (SOC) including incident response.
We have also implemented several organizational controls in this area following a road map aligned to the ISO 27001 information security governance and risk management framework. The approach covers operational security, crisis management, and business continuity management and follows the principal of three lines of defense. A dedicated security team ensures the second line of defense. We commission regular internal and external audits, including penetration testing.
We have put an Information Security Awareness program in place to regularly provide training to all our employees, contractors, and partners. The efficiency of the program is tested with regular phishing simulation tests.
We have been engaged by the Management of Breitling SA to perform assurance procedures to provide limited assurance on the compliance on the selected Greenhouse Gas emissions data and selected WEF core metrics for the period ending 31 March 2022 published in the Sustainability Mission Report 2022 of Breitling SA and its subsidiaries (collectively “Breitling SA”).
Scope and subject matter
Our limited assurance engagement relates to the following two subject matters:
• Breitling’s compliance for the selected WEF core metrics and disclosures with the WEF Stakeholder Capitalism white paper published by the World Economic Forum in September 2020 (the ‘White Paper’) and its application to the Sustainability Mission Report 2022 for the year ended 31 March 2022. The disclosures are divided into the four pillars: Principles of Governance, Planet, People and Prosperity and summarised in the index of the Sustainability Mission Report 2022 (please refer to Appendix 1)
• Greenhouse Gas (GHG) emissions data (scope 1 HQ emissions (incl. vehicles), scope 2 HQ and internal boutique emissions, scope 3 emissions: external boutiques, HQ originating logistics, HQ originating business travel, employee commuting and purchased goods) of Breitling SA (referred to as ‘Selected FY22 GHG Information‘) for the period ending 31 March 2022 as disclosed in the Sustainability Mission Report 2022 (please refer to Appendix 2) in respect to the determination of the selected FY22 GHG Information and its aggregation. We have not carried out any work on any GHG data not indicated here as a subject matter, GHG data reported for prior reporting periods and/or in respect to any projections or targets.
Criteria
The evaluation criteria for our assurance work were as follows:
• Procedures as defined within the WEF Stakeholder Capitalism Metrics in its application guidance (chapter 2.1 Application of recommended metrics). Procedures, by which the data is presented and accordingly referenced as the selected WEF core metrics and disclosures of the White Paper
• The management reporting processes with respect to the selected FY22 GHG Information were prepared by Breitling SA in accordance with the requirements of the GHG-Protocol Corporate Standard The specific application and calculation methodology (“ESG Policy” and “Carbon Footprint Methodology”) are available on the Breitling website under the section “Sustainability”.
Inherent limitations
The preparation of the selected WEF core metrics and disclosures and the accuracy and completeness of the selected FY22 GHG Information in the Sustainability Mission Report 2022 are subject to inherent limitations given their nature and methods for determining, calculating, estimating and presenting such data. GHG quantification is subject to inherent uncertainty, because of the incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of different gases. Our assurance report should therefore be read in connection with the White Paper and the requirements of the GHG-Protocol Corporate Standard.
The Management of Breitling SA is responsible for both, the Subject Matter and the Criteria as well as for the selection, preparation and presentation of the selected data and information in accordance with the criteria. This responsibility includes the design, implementation and maintenance of related internal control relevant to this reporting that is free from material misstatement, whether due to fraud or error.
Independence and quality control
We are independent of Breitling SA in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) that are relevant to our audit of the financial statements and other assurance engagements in Switzerland. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.
PricewaterhouseCoopers AG applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our responsibility
Our responsibility is to perform an assurance limited engagement and to express a conclusion on the selected WEF core metrics and disclosures and preparation of the selected FY22 GHG Information. We conducted our engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) ‘Assurance engagements other than audits or reviews of historical financial information’ and the International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements ('ISAE 3410'), issued by the International Auditing and Assurance Standards Board. Those standards require that we plan and perform our procedures to obtain limited assurance whether anything has come to our attention that causes us to believe that the WEF core metrics and disclosures evaluated against the White Paper and on the selected FY22 GHG Information were prepared in accordance with the GHG-Protocol Corporate Standard
Based on risk and materiality considerations, we performed our procedures to obtain sufficient and appropriate assurance evidence. The procedures selected depend on the assurance practitioner’s judgement. A limited assurance engagement under ISAE 3000 (Revised) and ISAE 3410 is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Consequently, the nature, timing and extent of procedures for gathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance engagement and therefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance engagement. The procedures selected depend on the assurance practitioner’s judgement.
Our assurance procedures included the following work:
• Assessment of the Materiality
Interviewing personnel responsible for internal procedures used to conclude on the materiality of sustainability matters and its presentation with a materiality matrix which served as a basis for the metrics selection;
• Questionnaire on implementing the White Paper in the Sustainability Mission Report 2022
Interviewing personnel responsible for the Sustainability Mission Report 2022 in order to understand the process steps, decisions and conclusions taken and assessing the implementation of the selected WEF core metrics in the report evaluated against the White Paper;
• Compliance review
Reviewing the compliance (comply or explain principle) of selected WEF core metrics and disclosures presented in the Sustainability Mission Report 2022 against guiding principles defined in the White Paper;
• Review of the application of Breitling SA guidelines and processes
Reviewing the application of the Breitling SA internal policies and procedures used in determining the Selected FY 22 GHG Information and assessing these processes for compliance with the GHG-Protocol Corporate Standard;
• Management inquiry
Interviewing personnel responsible for internal non-financial reporting and data collection to determine the understanding and application of Breitling SA guidelines;
• Assessment of the key figures
Performing tests on a sample basis of evidence supporting the Selected FY22 GHG Information concerning completeness, accuracy, adequacy and consistency;
• Assessment of the processes and data consolidation
Reviewing the management and non-financial reporting processes for Selected FY22 GHG Information, and assessing the aggregation process of data at Breitling SA level.
We have not conducted any work on data other than outlined in the subject matter as defined above. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Based on our work performed nothing has come to our attention causing us to believe that in all material respects:
a) the selected WEF core metrics and disclosures in the Sustainability Mission Report 2022 for the fiscal year ended 31 March 2022 are not disclosed in accordance with the WEF Stakeholder Capitalism Metrics white paper published by the World Economic Forum, September 2020.
b) The selected FY22 GHG Information are not stated in accordance with the GHG-Protocol Corporate Standard
This report is prepared for, and only for, the Management of Breitling SA, and solely for the purpose of reporting to them on the selected WEF core metrics and disclosures and preparation of the selected FY22 GHG Information and no other purpose. We do not, in giving our conclusion, accept or assume responsibility (legal or otherwise) or accept liability for, or in connection with, any other purpose for which our report including the conclusion may be used, or to any other person to whom our report is shown or into whose hands it may come, and no other persons shall be entitled to rely on our conclusion.
We permit the disclosure of our report, in full only and in combination with the suitable Criteria, to enable the Management to demonstrate that they have discharged their governance responsibilities by commissioning an independent assurance report over subject matter mentioned above, without assuming or accepting any responsibility or liability to any third parties on our part. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Management of Breitling SA for our work or this report.
Thierry Troesch
Zurich, 22 July 2022
Remo Satta
The maintenance and integrity of Breitling’s website and its content are the responsibility of the Management; the work carried out by the assurance provider does not involve consideration of the maintenance and integrity of the Breitling's website, accordingly, the assurance providers accept no responsibility for any changes that may have occurred to the reported GHG Information (including the GHG statement) or WEF core metrics since they were initially presented on the website.
4 Breitling SA | Independent limited assurance report
KPMG AG Badenerstrasse 172 PO Box CH-8036 Zurich
+41 58 249 31 31 kpmg.ch
We were engaged on the basis of Art. 13d of the Gender Equality Act (GEA) and Art. 7 of the Ordinance on the Examination of the Equal Pay Analysis to conduct a formal examination of the equal pay analysis to obtain limited assurance on the equal pay analysis performed by Breitling Chronometrie SA
The Management performed the equal pay analysis based on the reference month February 2021 during the reporting period from 1. July 2020 to 30. June 2021
Responsibility of the Management
The management is responsible for performing the equal pay analysis in accordance with Art. 13c GEA. This responsibility includes the design, implementation and maintenance of internal control relevant to the performance of the equal pay analysis. Additionally, the management is responsible for the selection and application of a scientific and legally compliant method and for maintaining adequate records
Independence and Quality Control
We are independent of Breitling Chronometrie SA as defined by the guidelines on independence issued by EXPERTsuisse and have observed the Code of Conduct and Professional Rules issued by EXPERTsuisse. These requirements are founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
Our firm applies Swiss Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements
Responsibility of the assurance practitioner
Our responsibility is to perform a limited assurance engagement and to express a conclusion on the formal examination of the equal pay analysis based on the procedures we have performed and the evidence we have obtained.
We conducted our engagement in accordance with Swiss Audit Standard 950 “Assurance Engagements other than Audits or Reviews of Historical Financial Information”. This standard requires that we plan and conduct procedures to obtain limited assurance about whether the equal pay analysis complies in all respects with the requirements of Art. 13d GEA and Art. 7 of the Ordinance on the Examination of the Equal Pay Analysis.
Taking into account risk considerations, we performed procedures to obtain sufficient appropriate evidence. The procedures selected depend on the assurance practitioner’s judgement. The procedures performed in a limited assurance engagement are of a lesser extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than would have been obtained had a reasonable assurance engagement been performed.
Breitling Chronometrie SA, La Chaux-deFonds
Independent Assurance Report on the formal examination of the equal pay analysis for the period from 1 July 2020 to 30 June 2021
Our responsibility is to conduct a formal examination of the equal pay analysis and not to assess the substance or the result of the equal pay analysis.
In accordance with the requirements of Art. 13d GEA and Art. 7 of the Ordinance on the Examination of the Equal Pay Analysis, we conducted a formal examination of the equal pay analysis and examined whether:
- the equal pay analysis was conducted within the legally prescribed time frame;
- there is proof that the equal pay analysis was conducted according to a scientific and legally compliant method;
- all employees were recorded in full;
- all components of salary were recorded in full;
- the required data, including personal and workplace-related attributes, were recorded in full..
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion
Conclusion
Based on the formal examination of the equal pay analysis we have performed, nothing has come to our attention that causes us to believe that the equal pay analysis of Breitling Chronometrie SA for the reference month February 2021 during the reporting period from 1. July 2020 to 30. June 2021 does not comply in all respects with the requirements of Art. 13d GEA and Art. 7 of the Ordinance on the Examination of the Equal Pay Analysis
KPMG AG
{{Signatureleft}}
Michael Herzog Licensed Audit Expert Auditor in ChargeZurich, 3. June 2022
Enclosure:
{{Signatureright}}
Maurin Manhart Operative Lead- Equal pay analysis for the reference month February 2021 during the reporting period from 1. July 2020 to 30. June 2021
Standard-Analyse-Tool (Logib)
Release 1099
Analyse mit Modul 1 durchgeführt am 24.03.2022
Zusammenfassung Lohngleichheitsanalyse
Firma/Institution Breitling Chronometrie SA
UID
Referenzmonat 02/2021
Anzahl Mitarbeitende 200 davon 127 (63.5%) Frauen und 73 (36.5%) Männer
Anzahl in der Analyse berücksichtigte Mitarbeitende 200 davon 127 (63.5%) Frauen und 73 (36.5%) Männer
Differenz Durchschnittslohn Frauen verdienen CHF 1213 (15.4%) weniger.
Unerklärte geschlechtsspezifische Lohndifferenz
Mit Berücksichtigung der personen- und arbeitsplatzbezogenen Merkmale verdienen Frauen 5.3% weniger
Grosser Geschlechtseffekt: Toleranzschwelle überschritten
Geschlechtseffekt vorhanden
Kein Geschlechtseffekt
Kontextinformationen zur Analyse
Sämtliche Berechnungen wurden anhand des Standard-Analysemodells des Bundes Modul 1 durchgeführt. Basis bildet der auf Vollzeit standardisierte Gesamtverdienst für 200 Mitarbeitende, davon 127 (63.5%) Frauen und 73 (36.5%) Männer im Referenzmonat Februar 2021
Im Durchschnitt verdienen Frauen 15.4% weniger als Männer. Unter Berücksichtigung der Unterschiede in den Qualifikationsmerkmalen und den arbeitsplatzbezogenen Merkmalen verdienen Frauen 5.3% weniger.
Die verbleibende, weder durch Unterschiede in den persönlichen Qualifikationsmerkmalen noch durch arbeitsplatzbezogene Merkmale zu erklärende Lohndifferenz ist statistisch nicht signifikant von null verschieden. Dies bedeutet, dass zwischen Frauen und Männern gemäss Standard-Analysemodell keine statistisch gesicherte unerklärte Lohndifferenz im engeren Sinne besteht.
Disclaimer
Das Ergebnis auf betrieblicher Ebene, d.h. die ausgewiesene unerklärte geschlechtsspezifische Lohndifferenz, macht keine Aussage bezüglich gruppenbezogener oder individueller Lohndiskriminierungen.
Das vorliegende Dokument kann keinerlei Gewähr dafür bieten, dass mit der Angelegenheit befasste Behörden oder Gerichte zu denselben Schlussfolgerungen gelangen.
+41 58 249 31 31 kpmg.ch
We were engaged on the basis of Art. 13d of the Gender Equality Act (GEA) and Art. 7 of the Ordinance on the Examination of the Equal Pay Analysis to conduct a formal examination of the equal pay analysis to obtain limited assurance on the equal pay analysis performed by Breitling SA
The Management performed the equal pay analysis based on the reference month February 2021 during the reporting period from 1. July 2020 to 30. June 2021
Responsibility of the Management
The Management is responsible for performing the equal pay analysis in accordance with Art. 13c GEA. This responsibility includes the design, implementation and maintenance of internal control relevant to the performance of the equal pay analysis. Additionally, the Management is responsible for the selection and application of a scientific and legally compliant method and for maintaining adequate records
We are independent of Breitling SA as defined by the guidelines on independence issued by EXPERTsuisse and have observed the Code of Conduct and Professional Rules issued by EXPERTsuisse. These requirements are founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
Our firm applies Swiss Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements
Responsibility of the assurance practitioner
Our responsibility is to perform a limited assurance engagement and to express a conclusion on the formal examination of the equal pay analysis based on the procedures we have performed and the evidence we have obtained.
We conducted our engagement in accordance with Swiss Audit Standard 950 “Assurance Engagements other than Audits or Reviews of Historical Financial Information”. This standard requires that we plan and conduct procedures to obtain limited assurance about whether the equal pay analysis complies in all respects with the requirements of Art. 13d GEA and Art. 7 of the Ordinance on the Examination of the Equal Pay Analysis.
Taking into account risk considerations, we performed procedures to obtain sufficient appropriate evidence. The procedures selected depend on the assurance practitioner’s judgement. The procedures performed in a limited assurance engagement are of a lesser extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than would have been obtained had a reasonable assurance engagement been performed.
Independent Assurance Report on the formal examination of the equal pay analysis for the period from 1 July 2020 to 30 June 2021
Our responsibility is to conduct a formal examination of the equal pay analysis and not to assess the substance or the result of the equal pay analysis.
In accordance with the requirements of Art. 13d GEA and Art. 7 of the Ordinance on the Examination of the Equal Pay Analysis, we conducted a formal examination of the equal pay analysis and examined whether:
- the equal pay analysis was conducted within the legally prescribed time frame;
- there is proof that the equal pay analysis was conducted according to a scientific and legally compliant method;
- all employees were recorded in full;
- all components of salary were recorded in full;
- the required data, including personal and workplace-related attributes, were recorded in full..
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion
Conclusion
Based on the formal examination of the equal pay analysis we have performed, nothing has come to our attention that causes us to believe that the equal pay analysis of Breitling SA for the reference month February 2021 during the reporting period from 1. July 2020 to 30. June 2021 does not comply in all respects with the requirements of Art. 13d GEA and Art. 7 of the Ordinance on the Examination of the Equal Pay Analysis
KPMG AG
{{Signatureleft}}
Michael Herzog Licensed Audit Expert Auditor in ChargeZurich, 3. June 2022
Enclosure:
{{Signatureright}}
Maurin Manhart Operative Lead- Equal pay analysis for the reference month February 2021 during the reporting period from 1. July 2020 to 30. June 2021
Standard-Analyse-Tool (Logib)
Release 1099
Analyse mit Modul 1 durchgeführt am 24.03.2022
Zusammenfassung Lohngleichheitsanalyse
Firma/Institution Breitling SA
UID
Referenzmonat 02/2021
Anzahl Mitarbeitende 226 davon 105 (46.5%) Frauen und 121 (53.5%) Männer
Anzahl in der Analyse berücksichtigte Mitarbeitende 225 davon 105 (46.7%) Frauen und 120 (53.3%) Männer
Differenz Durchschnittslohn Frauen verdienen CHF 6625 (42.6%) weniger.
Unerklärte geschlechtsspezifische Lohndifferenz Mit Berücksichtigung der personen- und arbeitsplatzbezogenen Merkmale verdienen Frauen 6.8% weniger
Grosser Geschlechtseffekt: Toleranzschwelle überschritten
Geschlechtseffekt vorhanden
Kein Geschlechtseffekt
Kontextinformationen zur Analyse
Sämtliche Berechnungen wurden anhand des Standard-Analysemodells des Bundes Modul 1 durchgeführt. Basis bildet der auf Vollzeit standardisierte Gesamtverdienst für 225 Mitarbeitende, davon 105 (46.7%) Frauen und 120 (53.3%) Männer im Referenzmonat Februar 2021
Im Durchschnitt verdienen Frauen 42.6% weniger als Männer. Unter Berücksichtigung der Unterschiede in den Qualifikationsmerkmalen und den arbeitsplatzbezogenen Merkmalen verdienen Frauen 6.8% weniger.
Die verbleibende, weder durch Unterschiede in den persönlichen Qualifikationsmerkmalen noch durch arbeitsplatzbezogene Merkmale zu erklärende Lohndifferenz ist statistisch nicht signifikant von null verschieden. Dies bedeutet, dass zwischen Frauen und Männern gemäss Standard-Analysemodell keine statistisch gesicherte unerklärte Lohndifferenz im engeren Sinne besteht.
Disclaimer
Das Ergebnis auf betrieblicher Ebene, d.h. die ausgewiesene unerklärte geschlechtsspezifische Lohndifferenz, macht keine Aussage bezüglich gruppenbezogener oder individueller Lohndiskriminierungen.
Das vorliegende Dokument kann keinerlei Gewähr dafür bieten, dass mit der Angelegenheit befasste Behörden oder Gerichte zu denselben Schlussfolgerungen gelangen.
This report was prepared in line with the WEF IBC Stakeholder Capitalism Metrics, released in September 2020 and updated in March 2021. Metric sources (in addition to and as defined by the WEF IBC) are included below for ease of reference.
Breitling selected the WEF IBC Stakeholder Capitalism Metrics in order to adopt a future-proofed structure for consistent and concise reporting that integrates existing reporting good practice for comparability. In the current reporting cycle, Breitling has reported according to the core metrics established therein. Those metrics that are included in the current reporting cycle will form the basis of reporting in future cycles to enable comparability. Where relevant, further information concerning the boundary and treatment of metrics is specified below.
In case of any data errata occurring in the course of annual reporting, Breitling will reissue the corresponding report if the total figures are impacted by more than 10%. In case of metric value reassignments, no report reissue will be made, but will be duly disclosed in the course of the subsequent reporting cycle.
Unless otherwise stated, the boundary of the Sustainability Report is Breitling SA. Financial statements are however consolidated and include reviews of Breitling Holdings and Breitling SA. The timeframe the report assesses covers April 1, 2021, to March 31, 2022, as the fiscal year of the Breitling Group. Comparative figures from the last reporting cycle of FY21 are also included in this report. In order to provide current data going forward, Breitling intends to issue a sustainability report on an annual basis.
The contact point within Breitling concerning this report is
Aurelia Figueroa Head of Sustainability aurelia.figueroa@breitling.comReport chapter and/or WEF IBC
pillar Report page(s) Further declarations/notes
Introduction, Governance 6
Introduction, Governance 6, 7, 9 Please also see the Breitling 2021 Sustainability Mission Report for further detail on our materiality methodology.
Product, People 18
Metric
Setting purpose
Stakeholder engagement
Risk for incidents of child, forced, or compulsory labor
Product 21 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. Consumption of key materials
Planet 36 No further GHG emissions have been identified as relevant to date for Breitling beyond carbon dioxide.
Planet 30
Planet N/A No sites are owned, leased, or managed by Breitling or its affiliates in or adjacent to protected areas and/or key biodiversity areas. This core topic is thus excluded from our reporting scope. In the near future, we will consider value chain impacts.
Planet N/A
Among our direct operations, no significant water consumption occurs in regions with high or extremely high baseline water stress. In the near future, we will consider value chain impacts.
Planet 30 Breitling has committed to the SBTi.
Planet 27, 36
Climate change: GHG emissions
Climate change: TCFD implementation
Nature loss: Land use and ecological sensitivity
Freshwater availability
Climate change: Paris-aligned GHG emissions targets
This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. Tons of carbon offset
Planet 27, 36 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. Shadow carbon price (CHF/TCO2E)
Planet 37 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. The figure provided is limited to HQ operations and the international retail network.
Planet 37 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. The figure provided is limited to HQ operations.
Energy consumed within the organization
Water consumed within the organization
Planet 37 Our reporting scope is limited at this time to our HQ and SAV operations. Single-use plastics
People 46 We define diversity, equality, and inclusion as a full range of immutable characteristics against which one may not be discriminated. Our current focus is primarily on gender, where we can make disclosures based on available data. We also consider – where legally allowed – factors like age, religion, social class, ethnicity, and sexual orientation.
People 46 Our equality disclosures in the current reporting cycle focus particularly on gender and will be expanded in the future.
People 46 Ratios of standard entry-level wage compared to local minimum wage are provided for Switzerland and are valid for both genders. Figures related to individual personnel compensation are not disclosed due to confidentiality reasons.
People 46 The number of hours worked are not available in the current reporting cycle.
People 46 Training hours are not available in the current reporting cycle. This is the subject of a 2024 target and reporting will be expanded in the future.
People 46 At this time, only the absentee rate is considered material to our reporting, given the low rate of incidents in our operations.
People, Prosperity 46 Our reporting scope is limited at this time to our HQ operations only.
Prosperity, Governance 53 A historical review of how risks and opportunities have moved over time is not available in the current reporting cycle.
Prosperity 54 Figures related to operating costs, payments to providers of capital, payments to government, and financial assistance received from the government are not disclosed due to confidentiality reasons.
Prosperity N/A As an unlisted company, we do not engage in typical market share buybacks. Dividend payments, along with the strategy for returns of capital to shareholders, are not disclosed due to confidentiality reasons.
Prosperity 54 Consists of prototype costs, direct R & D and product development expenses, staff costs, and depreciation.
Dignity and equality: Diversity and inclusion
Pay equality
Wage level
Health and well-being: Health and safety
Training provided
Health and well-being: Employee well-being
Employment and wealth generation: Absolute number and rate of employment
Metric sources
The British Academy and Colin Mayer, GRI 102-26, EPIC, and others
GRI 102-21, GRI 102-43, GRI 102-47
GRI 408-1b, GRI 409-1a
GRI 301-1
GRI 305:1-3, TCFD, GHG Protocol
Recommendations of the TCFD; CDSB R01, R02, R03, R04, and R06; SASB 110; SBTi
GRI 304-1
SASB CG-HP140a.1, WRI Aqueduct Water Risk Atlas tool: https://www. wri.org/aqueduct
SBTi
GRI 305-5
None
GRI 302-1
GRI 303-5
GRI 301-1
GRI 405-1b
Adapted from GRI 405-2
GRI 202-1, adapted from DoddFrank Act, US SEC Regulations
GRI:2018 403-9a&b, GRI:2018 403-6a
GRI 404-1, SASB HC 101-15
GRI 403-9
Adapted to include other indicators of diversity, from GRI 401-1a&b
Risk and opportunity oversight EPIC, GRI 102-15, WEF Integrated Corporate Governance, IR 4D
Employment and wealth generation: Economic contribution
Employment and wealth generation: Financial investment contribution
GRI 201-1, GRI 201-4
As referenced in IAS 7 and US GAAP ASC 230
Total R & D expenses US GAAP ASC 730
Prosperity N/A Figures related to tax paid are not disclosed due to confidentiality reasons. Total tax paid
Prosperity 54
Progress, Governance N/A All Board and senior management members as well as employees are trained on Breitling’s Employee Code of Conduct and Speak Up hotline, which contain our anti-corruption policy, on a biennial basis.
Progress, Governance 59
Progress, Governance 57, 58
Note: any reference made to GRI concerns the GRI standards of 2016 unless otherwise specified.
Community and social vitality
Ethical behavior: Anticorruption
Ethical behavior: Protected ethics advice and reporting mechanisms
Quality of governing body
Adapted from GRI 201-1
CECP Valuation Guidance
GRI 205-2, GRI 205-3
GRI 102-17
GRI 102-22, GRI 405-1a, IR 4B