Climate strategy

Roadmap for reducing Scope 3 emissions

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 committed to reducing not only its direct emissions but also the emissions across its entire value chain, including upstream and downstream activities (Scope 3).

The ambition of Swatch Group is climate neutrality in Scopes 1 and 2 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 zero 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 zero 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 &
refrigerants
  • Reduce emissions from refrigerants to 50% by 2030 and to zero by 2040.
  • Reduce process emissions to 50% by 2030.
  • Replace cooling systems and heat pumps with systems that use refrigerants with low global warming potential.
  • Reduce process emissions by using alternative technologies or by recovering /transforming the emissions.
  • Reevaluate feasibility of further reductions on a yearly basis.
  • Carbon capture / neutralization of remaining emissions within Swatch Group.
Scope 2TargetMeasures
Electricity
  • Reduce emissions from electricity to 50% by 2030, to 5% by 2040 and to zero 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.
District
heating
  • No target. District heating emissions are expected to double in the coming years due to more facilities switching to district 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 (planned)
 
  • 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 scope 3 emissions

Roadmap for reducing Scope 3 emissions

A roadmap for reducing Scope 3 emissions is currently being developed based on two factors. 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 absolute reduction of emissions in the case of Scope 3 emissions.

Further extensive analyses were carried out in 2025 in order to improve the measurement of Scope 3 emissions, particularly category 1, which has the greatest impact on the carbon footprint. For example, the Group analyzed the sourcing of materials, components and services by Group companies in order to create calculation models, taking account of emission factors on the basis of activity data in all areas where this makes sense. The Group is therefore in a position to analyze its emissions more accurately and, above all, to design and implement measurable action plans and define its reduction path more precisely.

This work sees the Group commit to aligning its Scope 3 emissions with the Paris Agreement targets based on the definition of an achievable science-based roadmap.

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.