3Sustainability Strategy
GRI 2-22: Statement on sustainable development strategy
TCFD: Strategy
3.1 Creating a Sustainable Future
The Company’s 2028 strategy journey includes initiatives along environmental, social and governance topics as identified targets. As part of its Business Excellence Model, the Company implemented an internal ESG Scorecard for all sites. With this structure Cicor aims to ensure full alignment and compliance with environmental, social and governance-related measurements.
By closely linking the sustainability journey to the Cicor Compliance organisation, the company is ensuring that risks are tracked and monitored actively, and that guidelines and policies are in place and updated whenever needed. Further details on the framework and the improvements can be found in chapter 5 (Governance and Fair Business Practices) of this report.
“At Cicor we are committed to compliance and sustainability by ensuring that the company’s business practices are in line with legal requirements, internal company guidelines, ethical principles and corporate values.”
3.2 The Company’s Contribution to a Balanced and Reduced Emission Footprint
As part of the Cicor 2028 strategy pathway, the Company aims to create and support an emission-reduced and balanced footprint with targets aligned to follow the goals of the Paris Agreement. In 2024 Cicor improved its environmental reporting system along all 3 scopes by creating its emission baseline as well as the ability to support customers with product level emission data starting from 2025. The Company aims to share full-scope short-, mid- and long-term targets in 2025, further supporting a sustainable journey ahead. Further details on Cicor’s environmental journey can be found in chapter 8 (Cicor’s Environmental Footprint) of this report.
“Cicor proactively integrates ESG risk monitoring into its compliance system, enabling early risk detection and strategic action. This reinforces the Company’s commitment to sustainability and ensures strong governance for long-term resilience.”
3.3 Shaping a Thriving Workplace
The Cicor employees are an important part of the Company’s success. Cicor aims to create a culture of equality, fairness and respect. Cicor supports any form of personal growth and sharing ethical standards. Cicor aims to be an Employer of Choice. Further strengthening the Company’s structures along its own workforce-related topics is a key initiative and part of the Cicor 2028 strategy. Creating a secure and trusted environment for the Company’s employees is a Cicor priority. Further details on the social journey of Cicor can be found in chapter 6 (Cicor as an Employer) of this report.
“Cicor strives to create a culture of equality, fairness and respect that supports personal growth, and build trusting relationships with the company’s shareholders, business partners and all other stakeholders of the company.”
3.4 Embedding Responsibility in the Value Chain
GRI 2-6: Activities, value chain and other business relationships
The Company’s approach to social matters does not relate only to its own operations. By integrating and fostering responsibility across the Cicor value chain, the Company aims to ensure compliance and alignment with business ethics standards. Cicor aims to strengthen and extend its approaches on specific topics also linked to workers in the value chain, with specific approaches and processes to ensure transparency and compliance. Further specific details on Cicor’s responsible supply chain journey can be found in chapter 7 (Creating Value Beyond the Company’s Business) of this report.
“Cicor is committed to further strengthen its approaches toward responsible sourcing in order to share transparency and compliance in its supply chain and creating a positive impact.”
The development and production of Cicor’s electronic solutions rely on integrating direct and indirect procurement processes. Cicor collaborates with a diverse supplier network, primarily based in OECD countries and Asia. Components and suppliers vary depending on the respective production site’s focus, ensuring flexibility and alignment with each location specific requirements. Supporting operational excellence, Cicor locally sources essential assets, including machinery, production tools, safety equipment, IT hardware / software and office essentials, to maintain efficient and safe site operations.
3.5 Creating Economic Value and Performance
GRI 201-1: Direct economic value generated and distributed
Cicor understands that long-term planning is possible only when the Company is financially stable in the short, medium, and long term. It knows that a strong financial position creates flexibility for strategic decisions. This is accomplished by providing customers with high-value materials that enable Cicor to achieve good margins on manufactured products. Furthermore, Cicor recognises that efficiency in tooling management will lead to faster setup and production, and that increasing productivity will strengthen its capability to produce higher quantities of products without additional capital investment. Cicor implements a multilevel approach to manage its economic performance. In addition to continuously reviewing prices, Cicor analyses requests for quotes (RFQs) in relation to business segment, technology and competitive environment. Cicor also ensures that all managers are aware of assets and expenses when making managerial decisions and that they share information with key managers in monthly meetings. Key Performance Indicators (KPIs) are in place to monitor the Company’s economic performance, including measuring sales performance and Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA). Cicor also compares its actual production output against planned output. Meetings on operational excellence ideas are held regularly to share knowledge across Cicor sites.
3.6 Customer Value Creation
GRI 2-24: Embedding policy commitments
Cicor is a goods manufacturer and service provider, and as such, creating value for its customers is a prerequisite for establishing and maintaining long-term partnerships. Customer acquisition is a crucial component of Cicor’s business plan – the Company works hard to win customers and projects in the medical technology, industrial and aerospace & defence sectors, in both production and development phases. Long-term customer retention is then achieved through high product and service quality and close customer contact. Key elements in value creation for customers include having highly qualified employees, using high-quality materials with high availability at the best possible prices, and committing to technological leadership and continuous process optimisation. To further strengthen Cicor’s position in the market, creating customer value by boosting customer satisfaction, improving customer experience, providing additional service benefits, and eliminating wasteful processes are all important. Cicor continuously aims to strengthen its competitiveness by shortening delivery times, developing a superior supply chain, and pursuing competitive costs for materials. Cicor implements growth targets to measure and expand its value creation for customers. To build close relationships with its customers, the Company aims to ensure that customer requests are taken on board and their needs satisfied. The Company attaches great importance to the delivery of goods and services in the agreed quality, quantity, and timing, while continuously obtaining customer feedback and generating appropriate responses. While Cicor’s reaction time continues to be affected by global issues regarding long lead times for raw materials and availability issues for electronic components, Cicor’s services have been maintained without interruption. Throughout the organisation, Cicor maintains regular alignment with customer requirements by ensuring customer consulting, supplier management, and operational excellence. For example, the production site in Bedford holds purchasing meetings with customers and works with suppliers to align on supply chain objectives. This cooperation has not only increased customer loyalty, but also led to cost savings for Cicor and its customers. Cicor endeavours to solve its customers’ challenges by helping address issues they cannot resolve themselves or identifying more affordable solutions than they can access on their own. The Company aims to increase customer satisfaction by improving efficiency, reducing costs and upgrading quality, while respecting the relevant standards and laws and ensuring compliance with regulations and rules. Cicor pushes for stronger customer relationships with better communication and continuous technology exchanges. This can lead to a greater understanding of customer needs and enables more foresight and flexibility. Additionally, the Company is striving to reach its full potential by improving its business selection and introducing a design-to-manufacture approach. Cicor uses customer input for its innovation and development planning, with a portion of its innovation initiatives focused on novel processes and newly available materials. Progress in achieving Cicor’s customer targets is monitored using KPIs, including on-time delivery (OTD), customer complaints, revenue increment tracking, first pass yield and quality reporting, response time, technical competence, product quality and lead time, as well as an annual customer survey. With monthly reporting on aligned indicators each of the Company’s site aims to continuously improving its structure with the KAIZEN approach or for example, by reducing the average number of customer complaints per month compared to the previous year. In 2024, the Company has further strengthen its scorecards with a integrated Business Excellence Model reporting for all sites.
3.7 Product Quality and Compliance
Poor product quality harms not only the customers’ but also Cicor’s reputation. Therefore, delivering high-quality products is a non-negotiable prerequisite for Cicor’s competitiveness. Providing superior performance that meets its customers’ expectations is crucial. The Company seeks to perpetually expand its know-how and technological capability and develop innovative applications with improved performance from new materials. The Company believes that quality is achieved through optimised processes rather than frequent inspections, and thus has implemented safe and reliable working practices as a way to maintain and improve quality control. Cicor’s customers trust the company to comply with their requirements and specifications, while ensuring that products are produced in adherence to all relevant laws and regulations. Quality is a particular priority since Cicor is delivering to the medical and aerospace & defence markets.
ISO 9001, 14001, 27001 and 45001 certifications also reassure customers that Cicor has a well-managed system to ensure high product quality. All Cicor processes are documented in detail and their observance is regularly audited. The Company has clearly defined work instructions and processes to comply with specifications, as well as a quality management and approval process in the production phase. Cicor’s Integrated Management System provides process descriptions, behaviours, and responsibilities assigned using a RACI matrix (Responsible, Accountable, Consulted, and Informed). Policies and processes for the handling of chemicals and hazardous substances, conflict minerals and other regulated substances, according to the European Union REACH regulation (Registration, Evaluation, Authorisation and Restriction of Chemicals) and RoHS directive (Restriction of Hazardous Substances in Electrical and Electronic Equipment), are also implemented. Materials are purchased from authorised suppliers with quality guarantees. The Company fosters a strong network of material suppliers to maintain its place at the cutting edge of the latest technical trends. The Company verifies that its product quality and compliance are managed effectively with a series of KPIs, including defect rates in parts per million (ppm), number of complaints, and non-quality cost. There are periodic third-party audits for some product certifications. Moreover, suppliers are rated by key customers using a scorecard that covers all relevant business parameters such as pricing, OTD, technical support, and innovation. Cicor holds monthly management meetings during which KPI achievement within the ISO 9001/13485 certifications and customer audits is assessed.
3.8 Engineering
Engineering is of fundamental importance to the Cicor Group. A team of highly skilled engineers with interdisciplinary expertise collaborates on customer projects, making the engineering department a key differentiator for the company. In many cases, a need for engineering is the starting point for a customer relationship with Cicor. Cicor’s engineers support the Company’s customers in the areas of hardware and software engineering, printed circuit board (PCB) layout and component selection, test engineering, tool design, printed electronics, and process and quality management throughout the entire product lifecycle.
Usage of green technology or the degree of energy efficiency depends largely on the product design, which is specified exclusively by Cicor’s customers. However, Cicor’s manufacturing approach in close engagement with customers enables the company to positively influence the manufacturability of products and their production efficiency. Cicor chooses technologies and production methods that use fewer valuable resources, reduce material consumption, and minimise waste generation, such as the miniaturisation of circuits, or using one rather than multiple types of coating material to reduce the number of types of chemicals used in production. In addition to decreasing the use of these materials, the Company also reduces dross and reprocessing cost. The implementation of requirements such as energy efficiency and green technology is verified at the customer project level. The Company’s interdisciplinary teams aim to drive forward implementing state-of-the-art technology. Cicor constantly evaluates new process materials and methods and fosters continuous improvement programs to reduce scrap rates, increase yield and first pass yield rate, and decrease the number of wasted materials. As responsibilities and processes are defined during the development phase, the requirements and standards are identified by the customer and are largely their responsibility. However, in addition, Cicor conducts in-depth verification of engineering requirements. For innovation projects, Cicor undertakes milestone planning and monitoring. In the reporting year the engineering pipeline was well-filled, and thus many products were developed and improved. Cicor has noted that its customers’ requirements for energy efficiency are increasing, especially in connection with the Internet of Things (IoT) and connectivity/digital networking worldwide.
3.9 Sustainability Highlights
Cicor’s sustainability efforts are complemented by employee-driven initiatives, such as participation in global environmental and social causes, reinforcing Cicor’s culture of responsibility. Apart from local community initiatives the Company commits to group-wide initiatives, showcasing how Cicor employees actively contribute to sustainability and community engagement.
Supporting spinal cord research through the Wings for Life World Run
In April, 213 runners from 15 Cicor locations across seven countries participated in the Wings for Life World Run, the world’s largest charity race. Representing the Cicor Group and Friends team, they collectively covered 1 211 km, securing 79th place out of more than 10 000 teams. Their participation contributed to a fundraising total of over CHF 7 000 for the Wings for Life Foundation, a pivotal organisation in supporting vital spinal cord research.
Beyond supporting a meaningful cause, the event fostered a sense of unity and collaboration across Cicor’s global workforce, bringing colleagues together to run for a shared purpose.
Cicor teams unite for World CleanUp Day
In September, Cicor Group employees across multiple sites participated in World CleanUp Day, showcasing their dedication to environmental responsibility. From forests and beaches to industrial parks and city streets, teams collaborated to remove waste and enhance their local surroundings.
In Newport, UK, over 70 employees collected 1.5 tonnes of litter, while teams in Hartlepool and Bedford focused on beach and street clean-ups. In Arad, Romania, employees participated in the restoration of a tourist trail, while in Switzerland, the Cicor Management team engaged in a waste collection initiative within a forest. In addition, 50 employees in Batam, Indonesia, cleaned the premises surrounding the site and a nearby industrial park, while volunteers in Dongguan, China, removed plastic waste from the surrounding area.
