Swatch Group Ltd. BearerSIX: UHR

↗ Rapport de Développement Durable 2025

· MarketScreener

Sustainability Report

2025



2025 key figures

Swatch Group consolidated key figures

Unit

2025

2024

2023

2022

2021

Corporate and governance

Net sales

CHF million

6 280

6 735

7 888

7 499

7 313

Salaries (excl. social security contributions)

CHF million

-1 888

-1 997

-2 043

-1 888

-1 802

R&D expenses (only direct costs)

CHF million

-264

-273

-275

-246

-245

Investments

CHF million

-462

-569

-803

-399

-303

Income taxes

CHF million

-133

-126

-262

-273

-237

Net result

CHF million

25

219

890

823

774

New patents

Environment

Number

187

196

188

209

202

Electricity consumption

GWh

247.8

266.4

294.0

281.4

257.9

Emissions from stationary combustion (primarily gas and heating oil)

t CO2eq

11 450

10 948

11 807

12 942

14 910

Direct and indirect emissions (market based, Scope 1 and 2)

t CO2eq

38 435

43 054

51 978

52 068

55 385

Water withdrawal

m3

1 333 293

1 770 580

1 780 075

1 627 938

1 422 121

Hazardous waste

t

1 967

2 165

3 421

2 881

2 431

Non-hazardous waste

Social

t

3 269

4 274

3 910

3 634

3 015

Employees as of Dec 31

Headcount

31 796

32 477

33 602

32 061

31 444

Proportion of women (headcount) %

49

49

49

50

50

Proportion of women in management roles %

38

36

37

36

37

Apprenticeship diplomas (in Switzerland)

Sourcing

Number

163

136

140

142

155

Supplier audits

Number

138

134

128

146

76

Suppliers with A or B rating

Number

109

93

86

87

40

57.2%

of electricity from renewable energy sources

85.6%

of electricity from fossil-free energy sources

-30.6%

reduction of Scope 1 and 2

emissions since 2021

592

apprentices as of 01.08.2025

(start of training year)

163

apprenticeships completed in 2025 (Switzerland)

138

supplier audits

Assurance conducted by PwC

‌Table of contents Sustainability at Swatch Group

Foreword 3

Overview of

Swatch Group 4

Business model

and products 5

Value chain 7

Sustainability

strategy 9

Sustainability

track record 12

Material sustainability topics 16

Stakeholders 18

Corporate and Governance

Governance, ethics

and compliance 23

Climate-related risks

and opportunities 36

Economic

performance 41

Innovation 45

Environment

Introduction 49

Energy

and emissions 50

Product design and the circular economy 64

Water 70

Biodiversity 73

Social

Employees, diversity and equal opportunities 79

Occupational health

and safety 84

Training, education

and preservation of arts and artisanship 87

Sourcing

General raw

material sourcing 94

Precious

metal sourcing 101

Diamond and

gemstone sourcing 104

Leather and

wood sourcing 105

Appendices

About this report 112

GRI content index 116

TCFD content index 123

Transparency regarding non-financial matters in accordance

with Art. 964 CO 124

Limited

Assurance Report 125

Glossary 128

Contacts 131

This sustainability report has been prepared in accordance with the GRI Universal Standards 2021. We followed all the reporting principles and requirements contained in the GRI 1 Foundation standard to identify content and prepare the report. The name Swatch Group includes the entire scope of Swatch Group entities included in the consolidated financial statements listed in the Annual Report 2025.

‌Sustainability at Swatch Group‌

Foreword 3

Overview of Swatch Group 4 Business model and products 5 Value chain 7

Sustainability strategy 9 Sustainability track record 12 Material sustainability topics 16 Stakeholders 18

Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices

Foreword

GRI 2-22

Foreword

Responsible operations, responsible corporate governance and sustainability are fundamentals for us and have been an integral part of our philosophy and corporate culture for many decades. We remain true to our vision and approach. Social responsibility, ethics and environmental protection have always been deeply anchored in our corporate culture. Swatch Group is

committed to reducing energy consumption, minimizing its contribution to global warming, and using sustainable materials. The company enforces a zero-tolerance

policy on corruption, modern slavery and child labor. Swatch Group positions itself as an attractive and responsible employer and as a training company.

Its business model is geared toward sustainable and long-term success.

In 2025, Swatch Group delivered on-site mobility plans to facilitate more responsible travel, dozens of energy audits at industrial facilities that revealed further major opportunities to improve our energy efficiency and an ambitious sustainable packaging policy.

Our materiality analysis serves as a compass for setting clear strategic objectives. At the same time, we've thoroughly studied our Scope 3 emissions, engaged with our suppliers on their own decarbonization efforts and developed eco-design guides. These initiatives lay the foundation for reducing our indirect emissions.

In addition, we have strengthened and markedly expanded our responsible procurement program to ensure transparency and ethics in our supply chain.

We continue to invest in sustainability with passion, commitment and conviction, factoring in the entire life cycle and customer-oriented development of our products and the supply chain in all areas.

Since 2021, Swatch Group has published a sustainability report in line with GRI requirements in order to

make reporting as transparent, comparable and comprehensive as possible. Swatch Group is also guided by the UN's Sustainable Development Goals (SDGs)

and, as a responsible company, makes a contribution to achieving these goals.

Marc A. Hayek / Thierry Kenel / Antonio J. Lopez

Sustainability Steering Committee

Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices

Overview of Swatch Group

GRI 2-1

Overview of Swatch Group

Swatch Group is an international group with 16 consumer brands working in the manufacture, marketing and sale of finished watches, jewelry, watch movements and components. It manufactures almost all the necessary mechanical and electronic components itself and supplies such parts to third-party manufacturers in Switzerland and around the world.

CHF 6280 million

net sales

31 796 employees

>30 countries

Sales in >160 countries

~150 production sites in Switzerland

7 production sites outside

of Switzerland 1

Subsidiaries in

1. France, Germany, Italy, Malaysia, Thailand and US. For more information, see page 5.



Global distribution: Swatch Group subsidiaries Swatch Group locations in Switzerland

Swatch Group headquarters

Swatch Group Sustainability Report 2025 4

Sustainability at Swatch Group Corporate and Governance Environment‌

Social

Sourcing

Appendices

Business model and products

Business model and products

GRI 2-6

Swatch Group is a fully vertical company with a global sales network, service centers across the world

and several sites for manufacturing watches, fine jewelry and electronic components. Swatch Group has approximately 150 production sites in Switzerland

where it manufactures its own watch movements, cases, crystals, hands and other watch components. This far exceeds the criteria for marketing Swiss Made watches in accordance with applicable legal requirements.

Swatch Group companies in the electronic systems segment also have their production sites in Switzerland. Only a few production sites are located abroad, namely Glashütte Original's manufactory in Glashütte, Germany, and Harry Winston's fine jewelry manufactory in New York, USA. However, Harry Winston timepieces are produced in accordance with Swissness requirements

in the manufactory in Plan-les-Ouates, near Geneva. Three other production facilities in Italy and France manufacture components for watch bracelets or specific precision parts. Swatch Group operates two production sites in Thailand and Malaysia for the assembly of electronic components and in the field of surface treatment.

Swatch Group brands and subsidiaries

Watches and jewelry







Distribution

Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices Business model and products

Production
  • ETA

    - Meco



  • CHH Microtechnique

  • Nivarox-FAR

  • Comadur

  • Rubattel & Weyermann

  • MOM Le Prélet

  • Universo

  • Manufacture Ruedin

  • Lascor

  • Novi

  • Swatch Group Assembly

  • Dress Your Body (DYB)

    Corporate
  • The Swatch Group Research and Development

    • Asulab

    • Moebius

    • CDNP

    • HSC

  • Belenos Clean Power

  • ICB Ingénieurs Conseils en Brevets

  • Swatch Group Services

    • Corporate Customer Service

    • European Distribution Center

    • Gems

    • Information Technologies

    • Logistics

    • Quality Management

    • Real Estate Development

  • Swatch Group Immeubles

Electronic Systems
  • EM Microelectronic

    - Renata

  • Micro Crystal

  • Swiss Timing and ST Sportservice

    Nicolas G. Hayek Watchmaking Schools
  • Miami (US)

  • Shanghai (China)

  • Glashütte (Germany)

  • Pforzheim (Germany)

  • Grenchen (CH)

    Training centers
  • Grenchen (two training centers, mechanics and horology)

  • Boncourt (mechanics)

  • La Chaux-de-Fonds (mechanics)

  • Le Sentier (mechanics and horology)

  • Sion (mechanics)

  • Mendrisio (mechanics and horology)

Sustainability at Swatch Group

Corporate and Governance

Environment

Social

Sourcing

Appendices

Value chain

Value chain

GRI 2-6



(simplified visual representation)

Global Switzerland

Transport

  • Opt for low-emission modes of transport

  • Short-distance transport

    Suppliers

  • Use sustainable materials

  • Switch to bio-based materials

  • Continue to increase the amount of recycled materials used

  • Only use certified timber

  • Do not use leather from protected or endangered species

    (except American alligator)

  • Reduce emissions

  • Take a zero-tolerance approach to corruption, modern slavery and child labor

  • Comply with international sustainability standards

Production

(Details on p. 8)

Brands

Divisions

Electronic Systems

  • Train specialists in-house through watchmaking schools and an extensive range of apprenticeship programs

  • Promote employee training and development

  • Conduct regular pay reviews

  • Increase the number of women in management roles

  • Be an attractive and responsible employer

  • Lead the Swiss watchmaking industry in the number of new patents

    Reduction path for Scope 1 and 2 GHG emissions

    -50% by 2030 and -90% by 2040 (base year 2021)

  • Become climate neutral by 2050 for Scope 1 and 2 emissions

    Sales subsidiaries

    Sales through own boutiques, SIS

    and e-commerce

    Customer service / distribution

    Customers

    Products

    • Offer durable, repairable products

    • Minimize products' power consumption

      Partnerships / philanthropy

    • Provide targeted support to third parties in the area of sustainability

Sustainable suppliers

Raw materials, components, services

Sustainable operations

Verticalization, Swiss Made

Sustainable products

Durability, repairability

Code of Conduct

Safeguard and promote human rights and sustainability

Collective bargaining / collective labor agreements

Fair working conditions at Swatch Group companies

Strategy for achieving climate goals

1

2

3

4

5

6

Avoid the use of resources that have no associated benefit

Reduce energy consumption to the necessary and technically feasible minimum

Efficient and effective operation of installations, as well as heat recovery

Alternatives to fossil-fuel energy sources, such as regenerative or zero-carbon energy sources

Independent generation or conversion of energy at the sites themselves

Energy storage systems and carbon offsetting projects



Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices

Production facilities

Value chain

SWISS MADE

Become climate neutral by 2050 for Scope 1

The advantages of "Swiss Made" Nature protection. One-seventh of Switzerland's land is protected by its

20 nature parks. In addition, around 30% of the country is made up of forested areas, and this percentage is increasing.

Water protection. Around 6% of Europe's freshwater reserves are found in Switzerland, and a large number of major rivers have their sources in the Swiss mountains. Thanks to exemplary water pollution control, the water quality is excellent.

Renewable energy. Renewables account for around 80% of the electricity consumed in Switzerland. The country has one of the

SWISS MADE

  • Minimize water use

  • Reuse water

    and 2 emissions

    • Avoid waste

    • Reduce use of fossil-based polymers

    • Reduce emissions

Increase level of recycling

  • Employee health and safety is top priority

  • Continually increase the energy efficiency of the company's facilities and processes

    world's lowest-emission electricity mixes.

    Public transport. One of the world's densest railway networks enables low-emission transportation of passengers and goods.

    Social welfare. Switzerland has very good social insurance, which provides extensive protection for people living and working in the country and for their dependents.

    Political stability and co-determination.

    One of the distinguishing features of Switzerland's democracy is that

    citizens are not merely represented by Parliament, but can also have a direct impact on legislation.

    Innovation. With a highly skilled workforce and outstanding scientific research institutions, Switzerland is one of the most innovative countries in the world.

    Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices

    Sustainability strategy

    GRI 2-12

    Sustainability strategy

    Corporate responsibility

    Swatch Group is committed to safeguarding its continued development, while also protecting the environment and guaranteeing the health and safety of individuals. The company endeavors to do the best it can in all areas and at all levels of the company to fulfill this responsibility. The Group's aim is to create value for its stakeholders, the environment and society as a whole.

    Environmental, ethical and social criteria have therefore always been an integral part of its corporate culture and its sourcing policy. The Executive Group Management Board, the Extended Group Management Board and the management teams at the individual units continually ensure that they demonstrate what this culture of responsibility looks like and that all employees at all levels continually share and practice this approach.

    Swatch Group strives to ensure that resources are used efficiently and sparingly to guarantee that its products are manufactured and marketed in a sustainable and environmentally friendly manner, and thereby secure its long-term success. The use of recycled, recyclable, certified and / or environmentally friendly materials, consumer goods and production methods are the basis for all product development.

    In 2001, Swatch Group began to set clear climate and efficiency targets and implement effective measures throughout the Group in order to play its part in preserving the environment. A further stage was completed in 2022, with the development and release of a roadmap for achieving Group-wide carbon neutrality in Scopes 1 and 2 by 2050.

    Alongside this important progress, the Group is working to update its materiality concept and has introduced

    an opportunity and risk management system for this purpose. Increased measurement of Scope 3 emissions and a stronger operational risk management approach in the area of human rights are two further significant areas of work on the long list of projects and activities that the Group's sustainability officers are pursuing in their various units.

    Commitment to the Sustainable Development Goals (SDGs)

    Swatch Group seeks to meet the needs of the current generation without jeopardizing the ability of future generations to meet their own. The company's sustainability management approach is based on the United Nations' 2030 Agenda, which was adopted by the UN Member States. The 17 Sustainable Development Goals (SDGs) at the core of the 2030 Agenda form the



    international and universally applicable framework for sustainable development. Every SDG is essential to securing the prosperity of people and the planet.

    Swatch Group has identified 13 SDGs that are especially relevant to the company and its stakeholders. The company actively contributes to achieving these goals.

    It has defined its commitments, and it will continue to refine them on an ongoing basis, by adding goals, actions and performance indicators.

    Sustainability at Swatch Group

    Corporate and Governance

    Environment

    Social

    Sourcing

    Appendices

    Sustainability strategy

    SDG Description Swatch Group's commitments SDG Description Swatch Group's commitments



    Ensure healthy lives and promote well-being for all at all ages

    • Occupational health and safety

    • Working conditions in the supply chain

    • Environmental considerations in the supply chain

    • Air quality

    • Water quality



      Ensure inclusive and equitable high-quality education and promote lifelong learning opportunities for all

    • Training and education

    • Availability of specialists

    • Training and employment of young workers



      Achieve gender equality and empower all women and girls

    • Equal pay for equal work

    • Promote diversity among employees



      Ensure availability and sustainable management of water and sanitation for all

    • Water consumption

    • Water quality

    • Environmental considerations in the supply chain



      Ensure access to affordable, reliable, sustainable and modern energy for all

    • Energy efficiency of the Group's products

    • Renewable energy in the Group's products

    • Energy efficiency of buildings and processes

    • Make the safety and health of employees the Group's highest priority

    • Train specialists in-house through watchmaking schools and an extensive range of apprenticeship programs

    • Promote employee training and education

    • Conduct regular pay reviews

    • Increase the number of women in management roles

    • Optimize water consumption and wastewater quality in buildings and processes

    • Take care to minimize water use in production and reuse water as much as possible

    • Develop products so that they can be operated with sustainable energy sources wherever possible and minimize energy consumption

      Promote sustained, inclusive economic growth, full and productive employment and decent work for all



      • Offer and create high-quality jobs

      • Cooperation with trade unions, collective labor agreements, employee benefits

      • Economic performance

      • Further training and education programs for employees

      • Working conditions in the supply chain



        Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

      • Innovation and R&D expenditure



        Ensure sustainable consumption and production patterns

      • Durable products, enabling repairs

      • Recycling and a circular economy

      • Environmental considerations in the supply chain

      • Working conditions in the supply chain

      • Avoid waste



        Take urgent action to combat climate change and its impacts

      • Energy efficiency of buildings and processes

      • Reduce GHG emissions

      • Commit to manufacturing in Switzerland and train employees to become specialists

      • Be an attractive and responsible employer

      • Remain the leader for the number of new patents in the Swiss watchmaking industry

      • Offer durable products that can be repaired

      • Take into account sustainability in the supply chain

      • Use sustainable materials

      • Continue to increase the amount of recycled materials used

      • Switch to bio-based material

      • Achieve climate neutrality

        (Scope 1 and 2 emissions) by 2050

      • Increase self-generated production of renewable electricity

      • Continually increase the energy efficiency of the company's facilities and processes

      • Develop products with a minimal carbon footprint

        Sustainability at Swatch Group

        Corporate and Governance

        Environment

        Social

        Sourcing

        Appendices

        Sustainability strategy

        SDG Description Swatch Group's commitments



        Conserve and sustainably use the oceans, seas and marine resources for sustainable development

        • Water quality

        • Environmental considerations in the supply chain

        • Avoid waste



          Protect, restore and promote sustainable use of terrestrial ecosystems

        • Deforestation and forest degradation

        • Promote biodiversity

        • Avoid air pollution

        • Avoid waste

        • Environmental considerations in the supply chain

          Promote peaceful and inclusive societies, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

        • Effective and transparent governance

        • Comply with laws and regulations

        • Working conditions in the supply chain



          Strengthen the means of implementation and revitalize the global partnership for sustainable development

        • Provide financial / technological support for sustainable actions

        • Economic performance, responsible taxpayer

      • Minimize water use

      • Audit suppliers in relation to water management

      • Reduce the use of fossil-based polymers and minimize the threat of microplastics

      • Only use certified timber

      • Do not use leather from protected or endangered species (except American alligator)

      • Take steps to reduce emissions

      • Avoid waste

      • Use own forests sustainably and promote biodiversity

      • Take a zero-tolerance approach to corruption, modern slavery and child labor

      • Comply with international sustainability standards (RJC, Kimberley Process, etc.)

      • Safeguard and promote human rights and sustainability in supply chains

      • Swatch Group brands support specific actions taken on sustainability by third parties

Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices

Sustainability track record

Sustainability track record

Swatch Group has been committed to sustainability for many decades. Some of the milestones are summarized on the following pages.

1992

1992-2000

Launch of the Time to Move special edition Swatch to commemorate the Rio Earth Summit. The conference aimed to bring together world leaders and get

them to commit to working toward a more secure future for our planet.

1994

The Spirit of Biel / Bienne solar-powered car sets a world record on the test track in Almería, Spain. The project was supported by Swatch and developed by the Ecole d'ingénieurs de Bienne.

1995

The first solar-powered Swatch with solar cells on the dial that power the quartz movement.

In collaboration with Daimler Benz, Swatch Group (then

©Keystone

SMH) founds the joint venture MCC AG and starts developing the first "Smart" (Swatch,

Mercedes and Art) hybrid car. This lays the foundations for what would later become the Belenos Clean Power Swatch Group company.



1999

Opening of the first Nicolas

G. Hayek Watchmaking School in Shanghai, China, to preserve and promote watchmaking artisanship. In the following years, further schools were opened in Asia, Europe and the US.



Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices Sustainability track record

2001-2011

2001

Swatch Group begins to set clear climate and efficiency targets and implement initial measures to reduce energy consumption

and greenhouse gas (GHG) emissions.

First collaboration with the Energy Agency



for the Swiss Private Sector (EnAW) to reduce GHG emissions and energy consumption.

2002

First consolidated report on occupational safety and environmental protection as part of the Annual Report.

2003

On the occasion of the 50th anniversary of the

diving watch Fifty Fathoms, Blancpain launches its first ocean protection initiatives.

2004

Omega supports the Solar Impulse project, with the aim to fly around the world in a solar-powered aircraft. The goal is to accelerate the necessary revolution

in clean energy production and consumption through the use of solar energy.

First certification in accordance with the ISO 14001 Environmental Management System standard at Swatch Group (ETA).

2006

Swatch Group and Omega contribute technological expertise and financial support in the fields

of micromechanics, microelectronics and new energy sources for the Solar Impulse solar-powered aircraft.

2008

Harry Winston becomes a member of the Responsible Jewellery Council.

2010

Decision to not use exotic leather in products, with the only exception being the use of straps from regulated American alligator breeders

(in accordance with CITES, US Fish and Wildlife Services and ICFA standards).

Renovation of Swatch Group's

La Suze and Le Bez hydroelectric plants.



First step toward centralized gold recycling within the Group.

2011

Opening of the unique Swatch Art Peace Hotel in Shanghai, China - a space that brings together diverse artists and encourages creation, collaboration

and connection.



Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices Sustainability track record

2011-2018

2011

First ESG (Environmental, Social, Governance) report published as part of the Swatch Group Annual Report.

Omega commits to fighting preventable blindness alongside international nonprofit organization Orbis with its flying

eye hospital.

2012

All of the Swatch Group brands voluntarily discontinue the use of mercury-containing batteries three years before the EU decision in 2015.

2013

First agreement with EnAW and FOEN on a roadmap to reduce GHG emissions and energy consumption.

2014

Blancpain brings together its many initiatives for the protection of the oceans under the Blancpain Ocean Commitment label.

2015

Solar Impulse takes off from Abu Dhabi (UAE). Omega provided innovative technical systems.

Omega, Swatch Group Gems and Dress Your Body become members of the Responsible Jewellery Council.

2016

The new, patented EFG (edge-defined, film-fed growth) crystal growth process for sapphires enables in-house recycling of production residues, resulting in a more environmentally friendly manufacturing process.

Renata develops a return and recycling scheme for discharged batteries for Swiss customers.

2017

The Group takes a further step toward gold

traceability by investing in the expansion of its own centralized gold foundry.

It moves to entirely internal processing of precious metals, from the foundry

to the semi-finished and finished products.

Swatch Group manufactures the world's smallest Bluetooth chip, the downsizing of which is crucial for condensing functions to fit into wearable electronic devices and for the Internet of Things (IoT). The Bluetooth chip is very energy efficient and starts up quickly.

2018

Nivarox-FAR is certified by the Responsible Jewellery Council Code of Practices (RJC CoP). The RJC

CoC (Chain of Custody) certification follows the year after.

Swatch Group decides to purchase only traceable gold.

Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices Sustainability track record

2019-2025

2019

Opening of the Swatch headquarters, one of the largest timber buildings in the world, with intelligent use of groundwater for heating and cooling, a total area of 1770 m2 for photovoltaic installations, LED lighting and an ingenious energy plan that helps optimize the

building's carbon footprint.



Opening of the Cité du Temps in Biel / Bienne, built in accordance with sustainability principles.

2020

Launch of the Tissot

T-Touch Connect Solar, powered by nature and distributed in a new 100% paper watch box.

Swatch introduces

new packaging made of paper foam.

Swatch introduces a new bio-sourced material.

2021

Newest innovation: BIOCERAMIC - watches made from a mix of ceramic and bio-based materials that use castor oil.

Preparation of the first sustainability report

in accordance with the GRI standards, which

also covers contributions to the SDGs.

Blancpain strengthens its commitment to the oceans by creating the Female Fifty Fathoms (FFF) Award as a new category at

the Ocean Photography Awards to mobilize more women to share their view of the oceans.

2022

Omega participates in ClearSpace's pioneering mission to remove hazardous space debris, extending its sustainability efforts from the ocean floor and the earth's surface to every corner of space, no matter how crowded.

2023

A record number of apprentices start their training - 180.

By expanding its apprenticeship program, Swatch Group is underlining the importance of vocational training and its role in securing young talent for the future.



2024

Start of the Swatch Group Sustainability School - an online learning experience consisting of 150 learning chapters to train employees on sustainable transformation topics.

2025

Ruedin has reduced Scope 1 and Scope 2 emissions to zero at its production site in

Bassecourt. The company has thus achieved



the climate-neutral production of watch cases, sending a clear

message about sustainable industrial processes.

Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices

Material sustainability topics

GRI 2-12, 2-13, 2-14, 3-1, 3-2

Material sustainability topics

Definition of report content

Material topics for Swatch Group were reworked in 2021. During the first step of this review, the Sustainability Steering Committee, along with external support, drew up a long list of potential material topics. The Committee included topics specified in key reference frameworks and relevant issues identified through extensive peer research. The list contained around 130 topics and

was consolidated, with topics grouped by theme. Using the SDG Action Manager tool, all the topics were then assessed in terms of their impact on sustainable development, measured against the Sustainable Development Goals (SDGs). The topics were given a rating based on each SDG for potential positive and negative impacts. This resulted in a list with 25 topics. They were consolidated further and reduced to 11 material topics.

In 2022, there was a thorough review of Swatch Group's existing material topics. For each topic, the review process recorded the existing or potential positive and negative impacts of the company's activities on business, the environment and people, including human rights, throughout the value chain. The review involved various stakeholder groups and drew on internal company data and external information. The Sustainability Team and an external agency assessed the impacts according

to their scale and scope, with particular attention paid to negative impacts. The scale refers to how severe

a negative impact is, while the scope refers to how widespread it is. The material topics were prioritized

based on this assessment. Each topic was assigned an appropriate, topic-specific GRI standard so that actions and developments in these areas can be demonstrated using specific performance indicators. In addition, the management of climate-related risk and opportunities was classed as material.

In 2023, the list of material topics was reviewed and supplemented. Risks, opportunities, indicators and objectives were listed for each material topic. It should be noted that some objectives are set at the level of the individual companies and, as a result, no consolidated targets at the Swatch Group level can be communicated. The consolidated targets, together with the targets of the individual companies, are an important component of the sustainability strategy.

The material topics were reviewed in 2024 and assessed as still relevant for Swatch Group. The Group also started an extensive materiality assessment based

on the principle of double materiality at the end of 2024. The project is being led by a group of experts from Swatch Group and its companies, and includes an extensive consultation with internal and external stakeholders. The materiality assessment was continued in 2025. The regulatory requirements of the

EU for sustainability reporting are in a state of flux. The European Commission is seeking to simplify various requirements through its omnibus proposal launched in 2025. Swatch Group is monitoring developments and

will revise and finalize the materiality analysis and the topics, objectives and indicators derived from it in line with the new requirements.

The Sustainability Committee reviews and approves the list of material topics. The Group's approach to corporate responsibility is approved by the Board of Directors, which has the ultimate responsibility.

Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices Material sustainability topics

Material topics GRI Standard Contribution to the SDGs

Corporate and Governance

Material topics GRI Standard Contribution to the SDGs

Social

Governance, ethics and compliance

Climate-related risks and opportunities

Economic performance

  • GRI 205 Anti-corruption



  • GRI 408 Child Labor

  • GRI 409 Forced or Compulsory Labor



  • GRI 201 Economic Performance



  • GRI 201 Economic Performance

  • GRI 207 Tax

    Employees, diversity and equal opportunities

    Occupational health and safety

    • GRI 401 Employment



    • GRI 405 Diversity and Equal Opportunity

    • GRI 406 Non-discrimination

    • GRI 407 Freedom of Association and Collective Bargaining



    • GRI 403 Occupational Health and Safety



Innovation − GRI 203 Indirect Economic Impacts

Training and education and preservation of arts and artisanship



  • GRI 404 Training and Education

    Environment

    Energy and emissions − GRI 302 Energy

    • GRI 305 Emissions

      Sourcing





      Sourcing − GRI 204 Procurement Practices

      • GRI 301 Materials

      • GRI 308 Supplier Environmental Assessment

      • GRI 408 Child Labor

Product design and the circular economy

  • GRI 301 Materials



  • GRI 306 Waste

- GRI 414 Supplier Social Assessment

Water − GRI 303 Water and Effluents

Biodiversity − GRI 101 Biodiversity





A description of the management approach and information on the topic standards is provided in the relevant chapters.

Sustainability at Swatch Group Corporate and Governance Environment Social Sourcing Appendices

Stakeholders

GRI 2-29

Stakeholders

Identifying and selecting stakeholders Drawing on the experience of employees from different areas such as quality management, sourcing, logistics, human resources, energy management,

and representatives of the Group companies and

Group management, the company has identified the stakeholders who have the most influence on Swatch Group or are most affected by its business activities in some way. These stakeholders can be categorized into five groups:

List of stakeholder groups

Customers

Employees

Business partners

Civil society

Regulators

Description / example

End customers, B2B

All employees

Partners / suppliers of products, raw materials, services

NGOs, the media, consumer federations, other players

Government bodies, industry associations, certification bodies

Key topics

- Durability and quality

- High-quality jobs

- Working conditions in the

- Climate change (GHG emissions)

- Lawful conduct

of products, customer

- Apprenticeship training

supply chain

- Working conditions in the

- Climate change

satisfaction

- Training and education

- Environmental

supply chain

(GHG emissions)

- Customer care and service

- Occupational health and safety

considerations in the

- Environmental considerations in

- Environmental considerations

- Transparent information

- Collective labor agreements

supply chain

the supply chain

in the supply chain

- Environment and working

- Employee benefits

- Transparent information

- Water consumption

- Working conditions in the

conditions in the supply chain

- Equal pay, pay reviews

- Economic performance

- Air quality

supply chain

- Economic performance

- Energy consumption

- Occupational health

- Lawful conduct

and safety

- Equal pay, pay reviews

- Collective labor agreements

- Waste, circular economy,

- Economic performance

Interaction Customer feedback in boutiques, after-sales service, online channels, social media

Direct communication, HR department, internal communication, intranet, mailings, flyers, CLAs

Regular direct communication, Supplier Code of Conduct, audits

recycling

Press releases, business and sustainability reporting

Implementation of legal specifications, active membership of federations

Earlier from Swatch Group Ltd. Bearer

All Swatch Group Ltd. Bearer news releases