Identifying and managing risks to support long-term resilience
As a global player in specialty chemicals, Sika is exposed to various risks. To achieve the Group’s objectives, safeguard its reputation and protect the capital invested in Sika, Group Management regularly analyzes potential risks and integrates them into the strategic decision-making process.
Risk governance
The Board of Directors (BoD), as Sika’s highest governing body, is responsible for overseeing the company’s risk management and ensuring that risks are managed in line with its strategic objectives. Its duties also include the annual reassessment of the risk situation at Group level, and it is the highest governing body for climate-related risks and opportunities. It is responsible for reviewing and endorsing the implementation of sustainability policies, while the Chair of the Board oversees climate-related topics by receiving regular updates from Group Management. The Chair of the Board is permanently invited to add climate-related topics to the agenda of the Chief Executive Officer (CEO) and the BoD. The Board of Directors is committed to the Science Based Target initiative (SBTi) to achieve net zero greenhouse gas emissions by 2050.
Group Management regularly reviews the risk management processes and is responsible for developing and implementing actions to mitigate risks (including those related to climate change) in line with the defined strategy and targets. Group Management is responsible for risk management at the highest executive level and provides the Board with regular updates. The Corporate Finance department, headed by the CFO, is responsible for risk management, including climate change-related risks. The CFO oversees both financial and non-financial information and data. As part of the due diligence process, the Mergers & Acquisitions (M&A) team conducts assessments of financial and non-financial performance.
Sika’s Group Risk Management team is responsible for three risk-related functions: Enterprise Risk Management (ERM), Insurance Management, and Internal Controls. The integrated Group Risk Management offers several advantages, including greater efficiency, improved collaboration, and more comprehensive risk oversight. Structured dialogue between the Group Risk Management team and the sustainability teams ensure consistent alignment of risk identification, assessment, and response.
Risk management framework
Sika has a comprehensive risk management system covering all its subsidiaries. This system is aligned with best international practices, including the COSO and ISO 31000 standards, and features a standardized risk universe taxonomy (strategic, operational, financial, organizational). Risks are identified at an early stage and integrated into strategic decision-making processes.
Risk management also helps to identify new opportunities and adds value to the business. It ensures that business objectives can be achieved and obligations to customers, shareholders, employees, and society can be met.
Climate change-related risks are integrated into the ERM framework, as unexpected climate-related disasters and the resulting economic fluctuations could affect global and local markets. Locally, climate-related risks are evaluated by EHS and Operations Managers in collaboration with Regional Operations Managers and General Managers. Risks in individual countries are consolidated on a regional level, and in a final step summarized and discussed at corporate level.
TCFD recommendations
In line with the recommendations of the TCFD, Sika uses its risk management framework and strategic planning to monitor the impact of climate-related risks and opportunities on its business. Sika recognizes that climate change is an evolving topic that requires regular climate impact analysis, which has further implications on business, strategy, and reporting robustness. By assessing climate-related risks under different scenarios, Sika can better understand the implications for its current business model and drive the respective mitigation activities.
Information on how Sika aligns with the TCFD framework can be found in the Sustainability Report 2025.
