Sustainability confirmed.

In a previous issue of “inform”, we reported that Otto Hofstetter AG was preparing for the future of sustainability reporting and had established initial benchmarks. Meanwhile, various guidelines have come into force in Europe and around the world. Via our partners, the first inquiries have come to our attention from international brands regarding the environmental footprint of our moulds. We are taking action to implement a thorough environmental, social and governance reporting process.

Reporting obligations in the EU.
With the introduction of the Non-Financial Reporting Directive and its successor, the Corporate Sustainability Reporting Directive, the European Union has significantly tightened its reporting requirements for ESG topics. These guidelines affect so-called public interest entities, which include large banks and insurance companies, with more than 500 employees. They are required to disclose comprehensive information about their ESG practices. These measures promote transparency and, therefore, contribute to a more sustainable economy.

Impact on the packaging industry.
Many well-known FMCG companies in Europe, such as Unilever, Nestlé and Danone, have launched extensive ESG initiatives. The Coca-Cola Company has joined the UN Global Compact¹ in its effort to promote sustainable business practices. Unilever has committed itself to making all its plastic packaging either reusable, recyclable or compostable by 2030. In addition, the company aims to halve the carbon footprint of its products over their entire life cycle. Nestlé is focused on reducing its environmental impact and aims to become carbon-neutral by 2050. Actions include initiatives to improve water management, reduce greenhouse gas emissions and promote sustainable packaging solutions. Danone provides a third example. This global company focuses on improving the health of people and the planet. This includes promoting sustainable farming practices, reducing waste and ensuring their products are beneficial to health. The packaging industry clearly has a big role to play.

‍Responsibility towards partners.
Like the brands mentioned above, many companies around the world are doing everything they can to achieve their own strategic sustainability goals. They must rethink long-established processes and products if they want to maintain their credibility with consumers and the capital markets. Ultimately, airtight accountability reports minimise risks and ensure sustainable environmental, social and ethical practices throughout the entire supply chain.
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ISO and GRI compatibility.
For several months now, Otto Hofstetter AG has been using a rating and reporting system developed in Switzerland to evaluate its performance. It was initiated by the Centre for Corporate Responsibility and Sustainability (CCRS) at the Fribourg School of Management together with leading companies in the Swiss financial sector. The programme is called esg2go. It assigns a quantitative value to all aspects of sustainability performance and is based primarily on the ISO standards and the UN’s Global Reporting Initiative.

In the first evaluation, undertaken in January 2023, Otto Hofstetter AG achieved a total score of 64.8 points. In order to be able to compare performance with other players in the industry, esg2go determines a benchmark. The reference value for the Uznach mould manufacturer was 60 points, which means that it is already above the benchmark in its efforts to promote responsible environmental, social and ethical business practices.

Progressive by tradition.
Switzerland has a long history of adopting progressive laws and practices regarding the environment, labour and business ethics. For example, strict laws have long encouraged the protection of the natural environment. The country also has a tradition of social responsibility through its fair employment practices and broad-based health and retirement provisions. In addition, a deep commitment to vocational training and further education has always been a mainstay of the Swiss economy. And the country’s active promotion of innovation has also contributed to Switzerland being a leader in sustainability and responsible corporate governance.
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Concrete measures implemented.
As a family business with deep local roots, it is a matter of course for Otto Hofstetter AG to embrace its responsibility towards society and the environment. For decades, the company has invested much time and money in training young professionals and supported universities with grants for research projects. As an officially certified training company, Otto Hofstetter AG guides twenty young people a year on their path to their professional future.

Otto Hofstetter AG also more than meets the minimum legal requirements in terms of energy conservation and environmental protection. For example, the entire roof of the new Otto Systems technical centre is used to generate solar power for the various production buildings. Furthermore, machining waste is collected and sorted according to type and returned to the materials cycle. The parent company in Uznach also supports its employees in switching to low-emission mobility and provides them with charging stations for their hybrid and electric cars.
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Broad foundation for the future.
In addition to the services and the activities initiated recently, Otto Hofstetter AG is currently re-examining its comprehensive sustainability strategy. The starting point is a location assessment based on data from a survey of all internal and external stakeholders.

The survey used an extensive questionnaire covering issues related to the environment, society and corporate governance. Employees, customers and suppliers as well as banks, authorities, industry associations and the public were surveyed on thirty topics, and their priorities were determined. These assessments by the individual stakeholder groups were compared with the corresponding assumptions made by Otto Hofstetter AG’s management. The resulting discrepancies between external and internal assessments showed where the company needs to adjust its focus in order to remain attractive to its stakeholders in the long term.

In a further step, the findings from the survey will be compared with the company’s traditional values and priorities, which will will set the framework for all future development projects. The next step for Otto Hofstetter AG’s sustainability strategy will be creating a detailed sustainability report based on the GRI Standards. This should be available to all interested parties in 2025. We will keep you informed in future issues of this newsletter.

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