Climate strategy

Compared to other industries, the watchmaking industry has low direct greenhouse gas emissions (Scope 1) and indirect emissions related to energy purchase (Scope 2).

Nevertheless, Swatch Group is working hard to reduce not only its direct emissions, but also the emissions of its entire value chain, both upstream and downstream, beyond energy purchase (Scope 3).

Within this reporting period, Swatch Group has estimated its entire Scope 3 emissions. These emissions stand at around  1.1 million tons of CO2eq, with a uncertainty factor of  
+/–0.5 million tons of CO2eq. The value is based on data from suppliers, emission factor databases, and published data from other industry players.

The ambition of Swatch Group is climate neutrality by 2050,  with intermediary targets set on Scope 1 and Scope 2 for  2030 and 2040. A target for Scope 3 and intermediary targets for Scope 3 will be announced once a concrete action plan is ready to publish.

Greenhouse gas reduction targets and measures


Scope 1TargetMeasures
Stationary combustion
  • Reduce stationary emissions to 35% by 2030 and to 0 by 2040.
    (This category includes consumption of heating oil, gas and wood for heat production.)
  • With the already planned projects for the next ten years, the stationary combustion emissions can be reduced by 90%. Ideas and concepts exist to reduce the remaining emissions as well.
Mobile combustion
  •  Reduce mobile emissions to 50% by 2030 and to 0 by 2040. (This category includes consumption of diesel and gasoline for Swatch Group vehicles.)
  • New cars and trucks to be non-fossil fuel vehicles. Exceptions must be justified.
Processes &
  • Reduce emissions from refrigerants to 50% by 2030 and to 0 by 2040.
  • Reduce process emissions to 50% by 2030.
  • Replace cooling systems with GHG free refrigerants.
  • Reduce process emissions by using alternative technologies or by recovering /transforming the emissions.
  • Revaluate feasibility of further reductions on a yearly basis.
  • Carbon capture / neutralization of remaining emissions within Swatch Group.
Scope 2TargetMeasures
  • Reduce emissions from electricity to 50% by 2030, to 5% by 2040 and to 0 by 2050.
  • Increase own renewable electricity production.
  • Procurement of renewable electricity through a mix of financing of projects, prioritizing bundled certificates, PPAs and as a last resort GoOs certificates.
  • Increase process and buildings energy efficiency.
  • No target. Community heating emissions considered doubling in the coming years due to more facilities switching to community heating.


  • Carbon capture / neutralization of remaining emissions within Swatch Group.
  • Transparency on the emission factors of district heating; influence communities to take measures to use low-carbon energy sources.
Scope 3TargetMeasures
  • Reduce Scope 3 emissions. 
    Specific targets and interim targets are defined as soon as a clear roadmap with concrete measures has been drawn up. 
  • Requiring suppliers to commit to a near term target and for carbon intensive sectors to a long term net zero target.
  • Introduce carbon intensity criteria in supplier selection process.
  • Replacing carbon intensive material by low carbon alternatives.
  • Encourage employees to switch to electric vehicles and public transportation.


Reduction path

Roadmap for reducing Scope 3 emissions

A roadmap for reducing Scope 3 emissions is currently in development. Work in connection with Scope 3 currently has two main focuses. First, data quality will be improved in order to better determine the priorities, and second, emissions will be continuously reduced through specific projects and measures. Swatch Group is also aiming for actual elimination of emissions in the case of Scope 3 emissions.

Climate-related risks and opportunities - Strategy

Swatch Group needs to tackle transition risks in the short-to-medium term. These risks may vary significantly depending on the implementation of the Paris Agreement by the countries. The transition may cause operational and procurement costs  to rise. Physical risks could present a greater risk to the procurement  of raw materials in the long term.

Changes in supply and demand as consumers opt for sustainable alternatives can be viewed both as an opportunity and a risk.