Em Holding AG (Onon): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico dos calçados atléticos, em Holding AG surge como uma potência suíça de inovação, navegando estrategicamente paisagens complexas globais por meio de sua tecnologia de desempenho de ponta e abordagem orientada a sustentabilidade. Desde seu amortecedor de amortecimento da Cloudtec até o seu compromisso com a responsabilidade ambiental, a empresa representa uma fascinante interseção de inovação tecnológica, estratégia de mercado e desafios globais de negócios. Essa análise abrangente de pestles revela os fatores externos multifacetados que moldam a notável jornada da AG na indústria competitiva de roupas esportivas, oferecendo informações sobre como essa organização com visão de futuro se adapta e prospera em um mercado global em constante evolução.

Em Holding AG (Onon) - Análise de Pestle: Fatores Políticos

Ambiente regulatório suíço

O índice de estabilidade política da Suíça em 2023 foi de 1,62 (Banco Mundial). O Holding AG opera sob a lei corporativa suíça, que ocupa o quinto lugar globalmente em transparência regulatória.

Indicador político	Ranking da Suíça	Valor
Índice de Estabilidade Política	Classificação global	8/180 países
Qualidade regulatória	Classificação global	5/180 países
Índice de Percepção de Corrupção	Classificação global	3/180 países

Tensões comerciais e implicações da cadeia de suprimentos

O volume total de comércio da Suíça em 2023 foi de 468,3 bilhões de CHF, com possíveis riscos geopolíticos afetando a dinâmica do comércio internacional.

• Valor comercial bilateral dos EUA-Switzerland: US $ 39,2 bilhões em 2023
• Acordos comerciais da UE-Switzerland: 120 acordos bilaterais
• Impacto tarifário potencial: 3-7% na fabricação de roupas esportivas

Regulamentos de Governança Corporativa

O Código de Governança Corporativa suíça exige padrões estritos de conformidade. Em Holding AG deve aderir a Código suíço da melhor prática regulamentos.

Métrica de Governança	Requisito de conformidade
Independência do conselho	Diretores independentes mínimos de 50%
Relatórios de transparência	Divulgações financeiras trimestrais
Relatórios ESG	Relatórios de sustentabilidade obrigatórios

Suporte de tecnologia e fabricação

Investimento do governo suíço em fabricação inovadora: CHF 1,2 bilhão em 2023 para setores de tecnologia e roupas esportivas.

• Incentivos fiscais de P&D: até 15% de redução de impostos corporativos
• Subsídios de inovação: CHF 250 milhões alocados para startups de tecnologia
• Financiamento de inovação em fabricação: CHF 450 milhões em 2023

Em Holding AG (Onon) - Análise de Pestle: Fatores Econômicos

Crescimento global do mercado de calçados atléticos e de desempenho

O mercado global de calçados atléticos foi avaliado em US $ 87,4 bilhões em 2022 e deve atingir US $ 124,5 bilhões até 2027, com um CAGR de 7,3%.

Segmento de mercado	2022 Valor	2027 Valor projetado	Cagr
Calçados atléticos globais	US $ 87,4 bilhões	US $ 124,5 bilhões	7.3%

Impacto da inflação nos gastos do consumidor

A taxa de inflação dos EUA em 2023 foi de 3,4%, afetando potencialmente os gastos discricionários do consumidor em calçados atléticos premium.

Indicador econômico	2023 valor
Taxa de inflação dos EUA	3.4%
Índice de Preços ao Consumidor (CPI)	296.808

Segmento de calçados atléticos premium

Na receita da AG em 2022 foi de US $ 684,1 milhões, com Crescimento de 67% no segmento de calçados.

Métrica financeira	2022 Valor
Receita total	US $ 684,1 milhões
Crescimento do segmento de calçados	67%

Flutuações de moeda

A taxa de câmbio entre Franc Swiss (ICC) e USD em 2023 teve uma média de 0,8781, com volatilidade afetando as operações do mercado internacional.

Par de moeda	2023 taxa média	Índice de Volatilidade
Chf/USD	0.8781	5.2%
CHF/EUR	0.9456	4.7%

Em Holding AG (Onon) - Análise de Pestle: Fatores sociais

Crescente tendência do consumidor para desgaste atlético sustentável e orientado a desempenho

O tamanho do mercado global de roupas esportivas sustentáveis ​​atingiu US $ 231,3 bilhões em 2023, com crescimento projetado para US $ 376,8 bilhões até 2028, representando um CAGR de 10,2%.

Segmento de mercado	2023 valor	2028 Valor projetado	Cagr
Desgaste atlético sustentável	US $ 231,3 bilhões	US $ 376,8 bilhões	10.2%

Aumento da consciência de saúde e bem -estar, impulsionando a demanda de calçados atléticos

O mercado global de calçados atléticos no valor de US $ 246,7 bilhões em 2022, que deve atingir US $ 347,3 bilhões até 2030, com um CAGR de 4,3%.

Segmento de mercado	2022 Valor	2030 Valor projetado	Cagr
Calçados atléticos	US $ 246,7 bilhões	US $ 347,3 bilhões	4.3%

Millennial e Gen Z Preference por roupas esportivas inovadoras e tecnologicamente avançadas

Taxas de adoção de tecnologia em roupas esportivas:

• Millennial Technology Integration Preferência: 78%
• Motivação de compra general da tecnologia Z: 82%
• O mercado têxtil inteligente espera atingir US $ 85,4 bilhões até 2025

Crescente importância da autenticidade da marca e responsabilidade social

Percepção do consumidor da responsabilidade social da marca:

Faixa etária	Importância da autenticidade da marca	Impacto de responsabilidade social
Millennials	73%	Provavelmente trocar de marca
Gen Z	83%	Altamente influenciado pelos valores da marca

Em Holding AG (Onon) - Análise de Pestle: Fatores tecnológicos

Tecnologia proprietária de amortecimento Cloudtec como diferenciação de produto -chave

Em Holding AG desenvolveu a tecnologia CloudTec em 2010, com 16 elementos de nuvem individuais por sapato, fornecendo amortecimento adaptativo. Os investimentos em P&D totalizaram US $ 32,4 milhões em 2023 especificamente para aprimoramento da tecnologia.

Métrica de tecnologia	2023 desempenho
Aplicativos de patente CloudTec	7 novas patentes globais
TECNOLOGIA P&D Gastos	US $ 32,4 milhões
Iterações de material Cloudtec	3 novas composições de materiais

Investimento contínuo em pesquisa e desenvolvimento para projetos inovadores de calçados

Em Holding AG alocado 14,2% da receita anual Para pesquisar e desenvolver em 2023, totalizando US $ 87,6 milhões.

Categoria de investimento em P&D	2023 Despesas
Investimento total de P&D	US $ 87,6 milhões
Inovação do design de produtos	US $ 41,3 milhões
Pesquisa em Ciência Material	US $ 22,5 milhões

Transformação digital de plataformas de varejo e comércio eletrônico

Vendas digitais representadas 38,6% da receita total em 2023, com US $ 213,4 milhões gerado através de canais on -line.

Métrica da plataforma digital	2023 desempenho
Receita de comércio eletrônico	US $ 213,4 milhões
Downloads de aplicativos móveis	1,2 milhão
Taxa de conversão online	4.7%

Técnicas avançadas de fabricação, melhorando o desempenho e sustentabilidade do produto

Em Holding AG implementado Tecnologias de impressão 3D na fabricação, reduzindo o desperdício de material por 22.5%. Investimentos sustentáveis ​​de manufatura alcançados US $ 45,7 milhões em 2023.

Inovação em fabricação	2023 dados
Implementação de impressão 3D	7 instalações de produção
Redução de resíduos de material	22.5%
Investimento de fabricação sustentável	US $ 45,7 milhões

Em Holding AG (Onon) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos comerciais internacionais e leis de propriedade intelectual

Em Holding AG, relatou 16 pedidos de patentes ativos em 31 de dezembro de 2022. A Companhia registrou marcas comerciais em 42 países em todo o mundo. Os custos de proteção de propriedade intelectual da empresa foram de US $ 3,2 milhões em 2022.

Jurisdição	Aplicações de patentes	Registros de marca registrada
Estados Unidos	7	22
União Europeia	5	15
Ásia-Pacífico	4	5

Desafios de proteção de patentes

As despesas de litígios legais relacionados à proteção da propriedade intelectual foram de US $ 1,7 milhão em 2022. A Companhia enfrentou 2 desafios legais relacionados a patentes durante o ano fiscal.

Conformidade com padrões ambientais e trabalhistas

Categoria de conformidade	Resultados da auditoria	Taxa de conformidade
Padrões ambientais	Certificação ISO 14001	98.5%
Padrões trabalhistas	Auditoria da Fair Labor Association	96.3%

Navegação de regulamentação comercial internacional

Em Holding AG, opera instalações de fabricação em 5 países, com os custos de monitoramento de conformidade atingindo US $ 2,5 milhões em 2022. A empresa mantém equipes jurídicas em três regiões principais para gerenciar os requisitos regulatórios internacionais.

• Orçamento de conformidade regulatória: US $ 4,8 milhões
• Tamanho da equipe jurídica: 22 profissionais
• Mercados internacionais servidos: 65 países

Em Holding AG (Onon) - Análise de Pestle: Fatores Ambientais

Compromisso com a produção sustentável e princípios de economia circular

Em Holding AG, relatou o uso 100% renovável de eletricidade em todas as operações globais em 2023. A Companhia alcançou uma redução de 30% no uso de plástico virgem na produção de calçados, implementando estratégias de design circular.

Métrica de sustentabilidade	2023 desempenho
Uso de energia renovável	100%
Material reciclado em sapatos	24.7%
Alvo de redução de emissões de carbono	50% até 2030

Reduzindo a pegada de carbono por meio de processos inovadores de fabricação

Em Holding AG investiu US $ 12,4 milhões em tecnologias de fabricação sustentável em 2023. A Companhia reduziu as emissões diretas de carbono em 22,6% em comparação com a linha de base de 2022.

Usando materiais reciclados na produção de calçados

Em 2023, a Holding AG utilizou 5,2 milhões de garrafas de plástico recicladas na fabricação de calçados. Aproximadamente 65% de sua linha de sapatos Cloudtec® incorporou materiais de poliéster reciclados.

Fonte de material	Quantidade usada (2023)
Garrafas de plástico recicladas	5,200,000
Poliéster reciclado	62,3 toneladas métricas

Implementando a sustentabilidade ambiental como estratégia de marca principal

Ao manter a AG alocada 8,7% do orçamento anual de P&D (US $ 22,3 milhões) para a inovação sustentável em 2023. As principais iniciativas ambientais incluem:

• Objetivo de fabricação de resíduos zero até 2025
• Embalagem de sapatos 100% reciclável até 2024
• Compromisso da cadeia de suprimentos neutra de carbono

Investimento de sustentabilidade	Quantia
Orçamento de P&D para sustentabilidade	US $ 22,3 milhões
Porcentagem de orçamento de P&D	8.7%

On Holding AG (ONON) - PESTLE Analysis: Social factors

You're looking at On Holding AG's explosive growth and wondering if the social tailwinds are strong enough to sustain the premium price point. Honestly, the social factors-from a deep consumer desire for premium quality to a clear shift toward brand-driven ethical consumption-are not just favorable; they are a primary engine for the company's financial momentum. The brand has successfully transitioned from a niche running shoe to a global, lifestyle-driven status symbol.

Strong, sustained demand for premium, high-quality athletic products continues to drive sales.

The market is clearly willing to pay a premium for On Holding AG's products, which speaks volumes about the perceived quality and design. This isn't just about athletic performance anymore; it's about a high-end, differentiated aesthetic. The company's financial results for the 2025 fiscal year underscore this demand, showing that consumer spending is resilient for brands that deliver on both innovation and status.

Here's the quick math: On Holding AG's gross profit margin hit a record 65.7% in the third quarter of 2025. That figure is a massive indicator of pricing power and premium positioning, well above the industry average. For the full year 2025, the company raised its net sales guidance to at least CHF 2.91 billion (Swiss Francs) in reported net sales, reflecting an expected growth of at least 31% on a constant currency basis. That's a serious growth rate that confirms the sustained appetite for their high-quality gear.

Brand successfully appeals to a younger, more fashion-conscious consumer base globally.

The brand is masterfully navigating the intersection of performance sportswear and fashion, which is crucial for capturing the next generation of spenders. We see a significant over-indexing with Gen Z consumers, the cohort that will account for 40% of the US fashion market over the next decade. They want a blend of technical performance and street style, and On Holding AG is delivering.

Brand awareness with the younger 18- to 34-year-old segment is particularly strong, with awareness more than doubling in a single year in the U.S.. This demographic is product-loyal, not always brand-loyal, so the continuous release of culturally relevant products-like the Cloudtilt-is key. This consumer base is highly influenced by social media and cultural relevance, so the company's strategy is defintely working.

Strategic collaborations, like those with Zendaya, broaden brand appeal beyond core running enthusiasts.

The strategic use of cultural icons and high-fashion partnerships is a clear move to cement the brand's position as a lifestyle player, moving past its core of dedicated runners. The multi-year collaboration with actor and fashion icon Zendaya is a perfect example, and it's already generating tangible results. Plus, the partnership with luxury brand LOEWE on the Cloudtilt was a huge success, selling out almost entirely within days.

This focus on apparel and lifestyle-driven footwear is paying off directly in the financials:

Category	Q2 2025 Growth (Constant Currency)	Impact
Apparel Business	75.5%	Propelled by Zendaya and LOEWE collaborations.
Direct-to-Consumer (DTC) Net Sales	54.3%	Reflects strong global demand and brand momentum.

The first co-created footwear design with Zendaya, the Cloudzone Moon, launched in Fall/Winter 2025, showing the partnership is moving into product co-creation, which deepens engagement.

Growing consumer preference for brands with clear sustainability commitments enhances loyalty.

Consumers, especially the younger ones, are increasingly using a brand's environmental, social, and governance (ESG) commitments as a filter for their purchasing decisions. While 61% of global consumers care about climate change in 2025, they expect brands to lead with credible proof. On Holding AG is positioning itself to capture this value-driven customer.

The company's focus on circularity and preferred materials is a key differentiator that enhances loyalty, especially since 72% of global consumers are willing to pay more for sustainable products.

• Used 84% of polyester fibers from recycled or renewable resources in 2024, up from 80% in 2023.
• Rolled out the Cyclon subscription program-a circular model for running shoes-to 34 markets.
• Developed CleanCloud technology to turn carbon emissions into shoe foam prototypes.

What this estimate hides is the challenge: despite these efforts, the company's absolute Scope 1 and 2 emissions increased by 13% in 2024 due to rapid expansion. The growth is outpacing the absolute reduction, a common problem for fast-growing companies, but the commitment to preferred materials is a strong positive signal to the market.

Next Step: Product Team: Highlight the 84% recycled polyester figure in all new product marketing copy to directly address the Green Spender consumer segment.

On Holding AG (ONON) - PESTLE Analysis: Technological factors

Core CloudTec® cushioning technology remains the key product differentiator in footwear.

The patented CloudTec® system is the core technology that underpins On Holding AG's premium market position, acting as the primary product differentiator in the fiercely competitive athletic footwear space. This technology, which uses hollow pods (the Clouds) in the midsole to provide cushioned landing and explosive take-off, is not static; it is constantly evolving to meet specialized performance needs. The company's continued success relies on iterating this core innovation, as seen in the launch of the Cloudsurfer 2 and Cloud 6 models in 2025, which feature advanced versions like CloudTec Phase, a system designed to deliver even smoother transitions.

This technological advantage supports the brand's premium pricing strategy, which is a key driver of its high profitability. For the second quarter of 2025 (Q2 2025), the gross profit margin expanded significantly to 61.5%, up from 59.9% in the prior year, a direct reflection of the brand's ability to command a higher price point due to perceived and actual product superiority over legacy competitors. Honestly, the CloudTec system is the technical moat protecting their margins.

Scaling of LightSpray innovation is a focus for advanced manufacturing and product development.

LightSpray™ innovation represents On Holding AG's next-generation technological leap, moving beyond just midsole geometry into advanced manufacturing. This technology is viewed internally as having game-changing potential for long-term sustained efficiency and market share gains. The focus in 2025 is on scaling its production capabilities, which involves significant investment in operational technology and infrastructure.

A concrete action supporting this scale is the completion of the fully automated Atlanta distribution center in early 2025. This automation is a critical technological upgrade that will help manage the next wave of global sales growth, particularly in the crucial North American market. By streamlining the supply chain with advanced logistics technology, the company aims to reduce fulfillment costs and speed up delivery times, supporting its high-growth trajectory, which is projected to be at least 31% net sales growth on a constant currency basis for the full-year 2025, translating to reported net sales of approximately CHF 2.91 billion.

Direct-to-Consumer (DTC) channel success relies heavily on continuous investment in digital and tech capabilities.

The Direct-to-Consumer (DTC) channel is the company's most profitable sales engine, and its growth is deeply intertwined with digital technology investment. The DTC channel's success is fueled by continuous tech enhancements, including AI-driven personalization and a sophisticated global e-commerce network that spans 28 countries. This digital focus ensures a premium, high-margin customer experience.

The financial impact of this digital strategy is clear. DTC sales growth in Q2 2025 surged by 47.2% on a reported basis (or 54.3% on a constant currency basis), significantly outpacing the wholesale channel. This growth has increased the DTC channel's contribution to overall revenue, which is a key profitability lever. To be fair, this DTC dominance insulates the brand from some retail volatility.

Metric	Q1 2025 Value	Q2 2025 Value
DTC Net Sales Growth (Reported YoY)	45.3%	47.2%
DTC Share of Total Net Sales	38.1%	N/A (Strong momentum confirmed)
Total Net Sales (CHF)	CHF 726.6 million	CHF 749.2 million

Innovation is expanding into new categories like tennis and training sneakers.

On Holding AG is strategically leveraging its core CloudTec technology to expand into new, high-growth categories beyond running, specifically tennis and training. This product diversification is a technological strategy to broaden the total addressable market and reduce reliance on the core running segment. The technology is adapted for the lateral stability and court-specific demands of tennis and the multi-directional movement of training.

The technological spillover effect is evident in the explosive growth of non-footwear categories, which benefit from the brand equity built on performance technology. Apparel and accessories, which rely on technical fabric innovation and design, saw phenomenal growth in the first quarter of 2025:

• Apparel sales surged by 93% in Q1 2025.
• Accessories revenue jumped by 99% in Q1 2025.

This expansion into a full ecosystem of premium activewear, including the technical demands of tennis and training shoes, shows that the company's innovation pipeline is defintely robust and scalable across different athletic disciplines.

On Holding AG (ONON) - PESTLE Analysis: Legal factors

You're looking at On Holding AG's phenomenal growth-projected net sales of at least CHF 2.86 billion for 2025-and the immediate question is how to protect that value from legal and regulatory risks. The legal landscape for a premium, global sportswear brand is a minefield of intellectual property (IP) battles, complex international labor laws, and shifting trade tariffs. Navigating this requires more than just compliance; it demands proactive risk mitigation to safeguard the brand's premium positioning and profitability.

Increased threat of counterfeit products necessitates stricter intellectual property (IP) enforcement globally.

Protecting the distinctive CloudTec® sole design and the On brand name is a constant, expensive fight. Counterfeiting is a major threat to a premium brand like On Holding AG, especially as sales expand into over 80 countries. While specific 2025 legal spend isn't public, the cost of global IP enforcement-investigations, cease-and-desist actions, and litigation-is a material drag on operating expenses.

Honesty, if you're not actively fighting fakes, you're losing margin and brand equity. The industry trend shows this is a high-stakes game: a competitor, Birkenstock, secured an ex parte injunction in the Delhi High Court in March 2025 against large-scale counterfeit footwear manufacturing in India, demonstrating the necessary, aggressive nature of this defense in key Asian markets. This is the playbook On Holding AG must follow to protect its forecast gross profit margin of 60.0% to 60.5% for full-year 2025.

Compliance with diverse international labor and manufacturing regulations is required across the supply chain.

The global supply chain, where substantially all of On Holding AG's products are manufactured by independent contract suppliers, is subject to intense scrutiny. This risk is compounded by a patchwork of international laws aimed at eliminating forced labor and ensuring ethical sourcing. The company's compliance efforts must span multiple jurisdictions, creating a significant administrative and due diligence burden.

The core compliance requirements for a global apparel and footwear company as of 2025 include:

• Mandatory reporting under the UK Modern Slavery Act.
• Adherence to the California Transparency in Supply Chains Act.
• Compliance with Canada's Fighting Against Forced Labour and Child Labour in Supply Chains Act.

The most critical risk is the U.S. Uyghur Forced Labor Prevention Act (UFLPA), which establishes a rebuttable presumption that goods from the Xinjiang Uyghur Autonomous Region (XUAR) are made with forced labor and are banned from entry into the U.S. The U.S. Customs and Border Protection (CBP) has detained over 12,500 shipments valued at $3.68 billion since June 2022, with apparel/textiles being one of the four most heavily impacted commercial industries. This means On Holding AG must maintain a meticulous, auditable supply chain that proves non-involvement with any of the 144 entities added to the UFLPA Entity List as of 2025, or risk significant import delays and seizures in its largest market, the Americas, which accounted for CHF 385.1 million in net sales in Q4 2024 alone.

Trade agreements and import/export laws, especially concerning raw materials and finished goods, create regulatory complexity.

Geopolitical tensions and trade policy shifts directly impact the cost of goods sold (COGS). On Holding AG acknowledged in its Q1 2025 report that recent global trade policy shifts have introduced a 'higher degree of uncertainty' into its planning. The most persistent complexity comes from U.S. trade policy.

The ongoing Section 301 tariffs on Chinese-origin goods remain a material factor, applying rates of 7.5% or 25% depending on the product classification. While the company may have diversified its manufacturing base, a reliance on Chinese raw materials or Tier 2 suppliers means these tariffs are still an indirect cost risk. The potential for new reciprocal tariffs in 2025 across key industries further complicates logistics and pricing strategy.

Legal/Regulatory Factor	2025 Financial/Operational Impact	Key Compliance Metric
US-China Section 301 Tariffs	Risk of 7.5% to 25% duty on Chinese-sourced inputs, impacting COGS.	Diversification of Tier 1/Tier 2 manufacturing outside of China.
Uyghur Forced Labor Prevention Act (UFLPA)	Risk of U.S. Customs and Border Protection (CBP) detention on U.S. imports.	Supply chain mapping to Tier 3 to prove non-XUAR material sourcing.
Global IP Enforcement (Counterfeiting)	Protects brand value supporting 2025 Net Sales target of CHF 2.86 billion.	Number of successful injunctions/takedowns on e-commerce platforms.

Corporate governance and SEC filing requirements must be maintained as a NYSE-listed company.

As a Foreign Private Issuer (FPI) listed on the New York Stock Exchange (NYSE), On Holding AG is subject to the U.S. Securities and Exchange Commission (SEC) reporting regime, specifically the annual Form 20-F. This adds a layer of complexity beyond Swiss corporate law.

The 2025 reporting cycle introduced new requirements that demand immediate attention. For the 2024 fiscal year Form 20-F filed in 2025, the company was required to file its insider trading policy as a new exhibit (Item 16J), and disclose whether it has a compliant clawback policy. Plus, the SEC is increasingly scrutinizing disclosures related to cybersecurity, artificial intelligence (AI) risk, and human capital management, requiring constant updates to the risk factors section of the Form 20-F. The dual-class share structure, with Class B voting rights shares concentrating control with the extended founder team, is also a corporate governance feature that requires clear, continuous disclosure to maintain investor confidence.

On Holding AG (ONON) - PESTLE Analysis: Environmental factors

You need to know that On Holding AG's environmental strategy is a critical competitive factor, not just a compliance issue. The company's core business pillar is a strong commitment to circularity and using renewable materials, but their rapid growth is still creating near-term carbon challenges. This is a classic decoupling problem where innovation is fighting scale.

Strong commitment to circularity and using renewable materials is a core business pillar.

On Holding AG is defintely pushing a bold vision: a future where every product is fossil-free and fully circular. This isn't just marketing; it's the company's stated North Star, driving their material innovation and business model design. They are actively working to keep materials in flow, which means designing products for their next life from the start. This focus is a major strategic advantage in a market increasingly scrutinized for textile waste.

The circularity model extends beyond just recycled content to include take-back programs and product-as-a-service initiatives like the Cyclon™ subscription. For example, the Cloudneo shoe is designed to be fully recyclable into a new product, moving away from the traditional linear take-make-dispose model.

The company is actively working to decouple growth from resource use and reduce its environmental impact.

The challenge for a company growing as fast as On Holding AG is separating business expansion from its carbon footprint. The 2024 Impact Progress Report, released in April 2025, shows this tension clearly. While they are improving efficiency, absolute emissions are still rising due to massive production volume increases. Still, they are making progress in efficiency.

Here's the quick math on their recent emissions performance:

Metric (2024 vs. 2023)	Change	Context
Absolute Scope 1 & 2 Emissions (Owned Operations)	Increased by 13%	Reflects growth in owned facilities and operations.
Scope 3 Economic Intensity Emissions (Supply Chain)	Increased by 3%	Measures emissions per unit of economic value; shows a slight rise in inefficiency relative to growth.
Average Emissions per Product	Declined	Indicates improved efficiency in manufacturing and material use for each unit produced.

To be fair, their long-term goals are aggressive and science-backed, aiming for a 46% absolute reduction in Scope 1 and 2 emissions and a 55% economic intensity reduction in Scope 3 emissions by 2030, all against a 2019 baseline. Starting in 2025, they are introducing product-level carbon reduction targets to embed these goals directly into the design process.

Development of the Cloudprime shoe, made from carbon emissions, showcases material innovation.

The Cloudprime shoe is the poster child for On Holding AG's material innovation, using captured carbon emissions as a raw material source. This is a major step toward de-fossilizing the supply chain, which is crucial since materials and manufacturing account for most of their emissions.

The innovation, called CleanCloud™, is a performance ethylene vinyl acetate (EVA) foam used in the midsole. The prototype's CleanCloud™ foam is made with 51% CO2. They are working with a coalition of partners to bring this to scale, moving the material from a prototype to an in-line product as fast as possible.

Key material innovations in the Cloudprime prototype include:

• Midsole: CleanCloud™ EVA foam, made using carbon emissions captured by LanzaTech.
• Outsole: Chemically upcycled Thermoplastic Polyurethane (TPU) from post-consumer plastic waste, in partnership with Novoloop.
• Upper: A polyester-based textile derived from carbon emissions, developed with Fairbrics.

Focus on increasing the use of recycled materials, with recycled polyester usage already at 85% in 2021.

The company has significantly scaled up its use of Preferred Materials, which are materials sourced to use less water, fewer harmful chemicals, and lower carbon emissions. This is where the rubber meets the road on their environmental commitments. The progress is measurable and consistent across key material types, showing a clear shift away from virgin, fossil-based inputs.

Look at the material composition data from the 2024 Impact Progress Report:

• Polyester Fibers: 84% sourced from recycled or renewable resources in 2024, up from 80% in 2023.
• Polyamide Fibers: 92% used in apparel and accessories came from recycled or renewable sources in 2024.
• Cotton and Cellulosics: 80% in apparel and accessories came from preferred sources in 2024.

This high percentage of recycled polyester, 84% in 2024, is well above the industry-wide goal of 45% for the 2025 Recycled Polyester Challenge, positioning On Holding AG as a leader in material uptake. This is a strong signal to investors and consumers that the company is executing on its material innovation pillar.