Environmental topics

At Comet, we recognize that environmental stewardship is essential to the long-term success of our business, the well-being of our communities, and the health of our planet. Guided by a commitment to sustainability, we strive to minimize our environmental impact through responsible resource management, innovative solutions, and the integration of environmentally sound practices across our operations.

Our approach is rooted in aligning our activities with global environmental goals, including reducing greenhouse gas emissions, enhancing energy efficiency, and promoting circularity in our materials and processes. We actively engage with stakeholders to foster collaboration and innovation in addressing pressing environmental challenges.

As we continue our journey toward a more sustainable future, we remain focused on embedding environmental responsibility into every aspect of our business. This section highlights the progress we have made, the challenges we face, and the actions we are taking to ensure that Comet contributes meaningfully to a world that is good to live in.

Sustainability is a core element of our corporate culture. We aim to deliver high-quality products and services while minimizing environmental risks and conserving resources. Our corporate standards are detailed in the Comet Group’s Quality, Environmental, and Safety Policy, supported by the Code of Conduct. As part of our commitment to responsible business practices, we systematically assess and manage risks related to regulatory compliance, operational efficiency, and sustainability. By identifying and addressing these risks, we ensure alignment with legal requirements, stakeholder expectations, and long-term business resilience.

A key aspect of our approach is compliance with both Swiss regulations and the evolving European Union regulatory landscape. Potential risks include fines and penalties for non-compliance, which we mitigate through proactive monitoring, internal controls, and continuous employee training.

Beyond legal consequences, we recognize that non-compliance and insufficient sustainability measures can impact our brand reputation. As consumer expectations and regulatory frameworks evolve, we actively engage with stakeholders and industry initiatives to maintain trust and transparency.

Further regulatory developments could affect our products and services, particularly concerning energy efficiency, producer responsibility, electronic waste, and trade regulations. To stay ahead, we incorporate regulatory foresight into our product design and supply chain decisions, ensuring compliance and competitive advantage.

Additionally, increasing operational costs due to regulatory carbon pricing present a financial risk. We address this by investing in energy efficiency, transitioning to clean energy sources, and continuously optimizing our processes to reduce carbon emissions.

The decrease in waste figures for 2024 reflects our ongoing efforts to reduce waste. Specific measures include reducing packaging materials for transportation, which not only cuts waste but also improves efficiency.

In contrast, water consumption increased compared to the previous year. This can be attributed to several factors: higher production volumes led to an overall rise in water usage, and an increased number of employees also contributed to the higher consumption. Additionally, there were one-time events that impacted water usage, such as the centralization of water treatment systems and a disruption in the reverse osmosis system in Flamatt, Switzerland, that required increased water use to restore its functionality.

We are actively working to use energy more efficiently and reduce greenhouse gas emissions in our own processes and throughout the value chain. By increasing the use of renewable, clean and low-emission technologies, as well as optimizing operational processes, we strive to minimize our environmental impact and contribute to combating climate change.

Our operations involve energy consumption, primarily in the form of electricity. A stable and reliable power supply is therefore a necessity. To safeguard against potential disruptions, we have implemented comprehensive measures to ensure that our electricity procurement remains secure, even in emergency situations.

Our procurement teams engage in proactive and forward-looking planning to mitigate risks related to energy supply. This includes establishing diversified energy sourcing strategies, securing backup power solutions, and developing contingency plans in close collaboration with trusted energy providers. These precautionary steps enable us to maintain operational continuity and protect our production capabilities under unforeseen circumstances.

Monitoring and reducing Scope 1 and Scope 2 emissions are key elements of our strategy for achieving short- and medium-term emissions targets set. For us, these emissions mainly consist of indirect greenhouse gas emissions that arise from the consumption of purchased electricity. In the reporting year, we consumed roughly 21,000 megawatt hours (MWh) of energy. We sourced 85% of this energy in the form of electricity. The remaining 15% was obtained from fuels such as natural gas and diesel. Accordingly, we are initially focusing on transitioning our electricity supply to clean sources to reduce emissions. As a limiting factor to those efforts, we lease the premises at all our locations except for the Flamatt site, which is owned by the company. This complicates emission management to the extent that the availability of renewable or clean electricity at some sites is nil or limited.

According to the GHG Protocol, only CO₂ is relevant for Comet, as emissions of the other six greenhouse gases are negligible in this context. In addition, any residual emissions from these gases are already accounted for in the emission factors of the respective energy sources, as these factors are reported in CO₂ equivalents.

During the reporting year, a comprehensive environmental data collection system was implemented through a cloud-based software solution, allowing ESG managers worldwide to input data on a monthly basis. Additionally, as part of the system’s rollout, the methodology for calculating the proportion of clean electricity sourced was refined, leading to a share of clean electricity of 67% compared to 68% in the previous year. The reason for this slight decrease was the production growth in 2024, as described in the next section. For a comprehensive explanation of definitions and methodologies used, refer to the section titled “Basis of calculations and definitions”.

In the fiscal year under review, Comet experienced an increase in energy consumption, primarily in electricity usage. This rise was entirely driven by higher production volumes resulting from a recovery in the semiconductor cycle, which led to a 12.1% increase in revenue. Consequently, Scope 2 emissions also increased, as a significant portion of this growth occurred at our Penang, Malaysia plant, which relies on only a low fraction of clean electric power sources. In 2024, the impact of higher production volumes was partially offset by transitioning our operations in Aachen, Germany, and Copenhagen, Denmark, to renewable electricity contracts. Additionally, to compensate for emissions at the Penang site, Comet is in the process of acquiring Renewable Energy Certificates (RECs). In contrast to the increase in Scope 2 emissions, Scope 1 emissions remained stable compared to the previous year.

Although absolute energy consumption increased, energy intensity – measured as total energy consumption per million CHF in revenue – decreased from 50.3 MWh to 47.3 MWh. This reduction was partly due to the transition of additional facilities to renewable electricity as described above during the reporting year, as well as a series of smaller measures, such as switching to energy-saving lighting and installing motion sensors at various sites. These efforts are being continuously implemented.

While Scope 1 emissions (direct emissions from company-owned or -controlled sources) and Scope 2 emissions (indirect emissions from the generation of purchased electricity) are important levers for reducing greenhouse gas (GHG) emissions in the near term, the majority of our total emissions are Scope 3 emissions, which encompass all other indirect emissions along the value chain. Having initially focused on understanding and managing our Scope 1 and Scope 2 emissions as a foundational step in reducing our overall carbon footprint, we are now shifting our attention toward addressing Scope 3 emissions. This allows us to tackle the most significant portion of our emissions and work collaboratively with suppliers, customers, and partners to drive meaningful, long-term impact throughout the entire value chain.

In the reporting year, we continued to refine our approach for screening Scope 3 emissions. Upstream and downstream activities – including raw material production, transportation, and product use by customers – constitute the majority of our carbon footprint, with Scope 3 emissions accounting for roughly 93% of total CO₂ emissions in 2024. Our improved process revealed Scope 3 emissions at approximately 113,000 metric tons reported to CDP in 2024. The Scope 3 emissions screening conducted in 2024 showed that approximately 80% of the Scope 3 emissions are attributable to Category 1 (Purchased goods and services) and Category 11 (Use of sold products). Based on the Scope 3 screening, Category 2 (Capital goods), Category 4 (Upstream transportation and distribution), Category 6 (Business travel), Category 7 (Employee commuting), and Category 9 (Downstream transportation and distribution) were also identified as relevant emission sources, accounting for the rest of the emissions. All other Scope 3 categories were assessed as not material during the screening process.

The findings of the Scope 3 emission screening have determined our priorities for 2025 and beyond. Through the frameworks of TCFD and SBTi, we will analyze climate-related risks such as physical damage, production disruptions, and regulatory changes.

As part of our commitment to climate responsibility, we are developing a structured emission reduction pathway aimed at systematically lowering greenhouse gas (GHG) emissions across our operations and value chain. This pathway prioritizes reductions in Scope 1 and Scope 2 emissions through increased energy efficiency and the transition to clean energy, while also addressing key Scope 3 emission sources in collaboration with suppliers and partners.

Our products have a significant impact on both society and the environment. At a societal level, our technologies are critical in the production of semiconductor chips and sensors – core components that power the digital world. From an environmental perspective, our impact spans the entire product life cycle, beginning with the sourcing of raw materials, continuing through product use, and extending to end-of-life disposal.

Our products have environmental impacts due to resource extraction, energy consumption, and waste generation at the end of their life cycle. They rely on rare and heavy metals like tungsten, neodymium, and lead, which can contribute to habitat pollution. Their operation consumes electricity, thus increasing carbon emissions, particularly in fossil fuel-dependent regions. Manufacturing requires water and generates waste, while disposal remains challenging due to complex material recovery and limited recycling programs. To address these impacts, in addition to our ISO 14001 initiative and the use of clean electricity, we are actively exploring ways to minimize our environmental footprint through our eco-design initiative. This includes developing energy-efficient designs, promoting sustainable manufacturing, and implementing take-back programs for rare material recycling. Exploring alternative materials and extending product life cycles further support waste reduction.

Evaluating and reducing our environmental footprint is increasingly important for us. This focus is driven by growing customer demand for environmentally responsible products and our own commitment to prioritizing sustainability when selecting suppliers. By integrating sustainability more deeply into our supply chain, we aim to further reduce our overall environmental impact.

Failing to properly assess the environmental and safety impacts of our products could expose us to significant risks. Products that cause harm or fail to meet legal safety standards could lead to product liability claims, resulting in costly legal disputes that divert valuable resources and time. Additionally, financial penalties, damages, and product recalls could impose severe financial burdens on the company. To mitigate these risks, it is essential to conduct thorough assessments and ongoing monitoring of our products’ impacts. This approach helps protect our customers’ trust and safeguard Comet’s long-term integrity.