Sustainability Strategy
Rieter has been committed to sustainability in relation to the “environment, social issues and corporate governance” (ESG) for many years. ESG is an integral part of corporate strategy. Rieter is committed to driving forward the 2050 energy transition and the goals of the Paris Climate Agreement. Two dimensions are considered here: the development and provision of high-quality technology for the spinning process and the minimization of the company’s own environmental footprint.
For the spinning process, Rieter offers state-of-the-art technologies that use digitization and artificial intelligence to increase energy efficiency and optimize the use of raw materials. The company’s recycling spinning systems enable spinning mills to overcome the challenges associated with mechanically recycled fibers. This allows customers to benefit from the growing demand for sustainable textiles.
At the same time, the recycling systems contribute to the reduction of textile waste and improve the framework conditions for the development of a circular economy. In addition to technologies, Rieter also supports customers with textile know-how in the production of innovative yarns from recycled or chemically produced fibers.
Rieter is working intensively to reduce its environmental footprint in all areas of the company and, together with its suppliers, along the entire value chain. In the fourth quarter of 2023, Rieter conducted a materiality survey among the company’s key stakeholder groups. The survey was based on the European Sustainability Reporting Standards (ESRS).
Five new key topics were identified. The Group will take these topics into account accordingly in the further development of its sustainability strategy:
- Biodiversity (ESRS – E4)
- Circular economy (ESRS – E5)
- Climate change (ESRS – E1)
- Own workforce (ESRS – S1)
- Business conduct (ESRS – G1)
At the same time, Rieter plans to develop a net-zero strategy in the 2024 financial year. The company will continue to report annually on its progress in achieving the “People and Planet” targets for 2025.
The Board of Directors of Rieter Holding Ltd. defines the goals and priorities of the company’s sustainability strategy, for example in the areas of the circular economy and the reduction of CO2 emissions. Group management implements the sustainability strategy at the operational level and monitors the achievement of targets and progress in the areas of “People” and “Planet”. Rieter Group’s finance department is putting the necessary structures in place to enable transparent ESG reporting and to meet upcoming regulatory requirements.
The product and market-related measures, such as optimizing the energy consumption of the individual spinning systems or establishing sustainable supply chains, are the responsibility of the respective business groups. The local Rieter companies are responsible for site-specific measures in the areas of energy, waste, biodiversity and occupational safety. They are supported by Corporate Risk Management. Environmental risks are systematically identified, assessed, and considered in all decision-making and investment processes.
Based on these risk analyses, Rieter assumes that climate change will have only a limited impact on the company. The effects of climate change are making cotton production difficult in more and more regions of the world.
On the one hand, this development increases the demand for fossil-based fibers such as polyester; on the other hand, it accelerates the demand for recycled fibers and thus promotes the development of new yarns. These are often made from plant-based materials and are increasingly being designed specifically for the circular economy.
Spinning mills are also feeling the change. Fashion brands are increasingly seeking direct contact with yarn manufacturers, whose expertise is becoming more and more important. Rieter’s technologies, services and components, as well as the expertise of its employees in textile technology, help spinning mills adapt to these changes and meet the growing demand for circular yarns for sustainable textiles.
The sustainability strategy is based on the following pillars:
Environment
- Sustainable spinning processes thanks to Rieter technology
- Complete spinning systems for the production of recycled yarns
- Energy-efficient and ecological production concepts
Social
- Safe and healthy workplaces
- Continuous education and training
- Diversity
- Suppliers
- Social engagement
Corporate governance
- Code of Conduct
- Business ethics
- Certificates, awards and ratings
- Sustainability Committee
These principles are set out in the following guidelines:
- Mission, vision, values and principles
- Code of Conduct
- Corporate governance
- Safety, health and environmental concept
- Supplier and purchasing conditions
- Supplier Code of Conduct
- Risk management policy
- IT information policy
Rieter collects data on "Environment, Social Responsibility and Corporate Governance" once a year.
Governance Sustainability
The Board of Directors of Rieter Holding Ltd. defines the company’s sustainability strategy, which is executed by the Group Executive Committee. The business groups implement productand market-related measures.
