Análisis PESTLE de On Holding AG (ONON) [Actualizado en enero de 2025]

En el mundo dinámico del calzado deportivo, On Holding AG emerge como una potencia de innovación suiza, navegando estratégicamente los paisajes globales complejos a través de su tecnología de rendimiento de vanguardia y su enfoque basado en la sostenibilidad. Desde su innovador amortiguación de CloudTec hasta su compromiso con la responsabilidad ambiental, la compañía representa una fascinante intersección de innovación tecnológica, estrategia de mercado y desafíos comerciales globales. Este análisis integral de la mano presenta los factores externos multifacéticos que conforman el notable viaje de AG en la industria competitiva de ropa deportiva, ofreciendo información sobre cómo esta organización con visión de futuro se adapta y prospera en un mercado global en constante evolución.

Sobre Holding Ag (Onon) - Análisis de mortero: factores políticos

Entorno regulatorio suizo

El índice de estabilidad política de Suiza en 2023 fue de 1.62 (Banco Mundial). On Holding AG opera bajo la ley corporativa suiza, que ocupa el quinto lugar a nivel mundial en transparencia regulatoria.

Indicador político	Clasificación de Suiza	Valor
Índice de estabilidad política	Rango global	8/180 países
Calidad regulatoria	Rango global	5/180 países
Índice de percepción de corrupción	Rango global	3/180 países

Tensiones comerciales e implicaciones de la cadena de suministro

El volumen comercial total de Suiza en 2023 fue de CHF 468.3 mil millones, con posibles riesgos geopolíticos que afectan la dinámica del comercio internacional.

• Valor comercial bilateral de US-Switzerland: $ 39.2 mil millones en 2023
• Acuerdos comerciales de la UE-Switzerland: 120 acuerdos bilaterales
• Impacto de la tarifa potencial: 3-7% en la fabricación de ropa deportiva

Regulaciones de gobierno corporativo

El Código de Gobierno Corporativo Suizo exige estrictos estándares de cumplimiento. Al sostener la Ag debe adherirse a Código suizo de las mejores prácticas regulaciones.

Métrico de gobierno	Requisito de cumplimiento
Independencia de la junta	Mínimo 50% de directores independientes
Informes de transparencia	Divulgaciones financieras trimestrales
Informes de ESG	Informes de sostenibilidad obligatorios

Tecnología y soporte de fabricación

Inversión del gobierno suizo en fabricación innovadora: CHF 1.2 mil millones en 2023 para sectores de tecnología y ropa deportiva.

• Incentivos fiscales de I + D: hasta 15% de reducción de impuestos corporativos
• Subvenciones de innovación: CHF 250 millones asignados para nuevas empresas de tecnología
• Financiación de la innovación de fabricación: CHF 450 millones en 2023

Sobre Holding Ag (Onon) - Análisis de mortero: factores económicos

Crecimiento del mercado global de calzado deportivo y de rendimiento

El mercado mundial de calzado deportivo se valoró en $ 87.4 mil millones en 2022 y se proyecta que alcanzará los $ 124.5 mil millones para 2027, con una tasa compuesta anual del 7.3%.

Segmento de mercado	Valor 2022	2027 Valor proyectado	Tocón
Calzado deportivo global	$ 87.4 mil millones	$ 124.5 mil millones	7.3%

Impacto de la inflación en el gasto del consumidor

La tasa de inflación de EE. UU. En 2023 fue del 3.4%, lo que potencialmente afectó el gasto discrecional del consumidor en el calzado atlético premium.

Indicador económico	Valor 2023
Tasa de inflación de EE. UU.	3.4%
Índice de precios al consumidor (IPC)	296.808

Segmento de calzado atlético premium

Sobre la celebración de los ingresos de Ag en 2022 fue de $ 684.1 millones, con 67% de crecimiento en el segmento de calzado.

Métrica financiera	Valor 2022
Ingresos totales	$ 684.1 millones
Crecimiento del segmento de calzado	67%

Fluctuaciones monetarias

El tipo de cambio entre el franco suizo (CHF) y el USD en 2023 promedió 0.8781, con una volatilidad que impacta las operaciones del mercado internacional.

Pareja	Tasa promedio de 2023	Índice de volatilidad
CHF/USD	0.8781	5.2%
CHF/EUR	0.9456	4.7%

On Holding Ag (Onon) - Análisis de mortero: factores sociales

Creciente tendencia del consumidor hacia el uso atlético sostenible y basado en el rendimiento

El tamaño del mercado global de ropa deportiva sostenible alcanzó los $ 231.3 mil millones en 2023, con un crecimiento proyectado a $ 376.8 mil millones para 2028, lo que representa una tasa compuesta anual del 10.2%.

Segmento de mercado	Valor 2023	2028 Valor proyectado	Tocón
Ropa atlética sostenible	$ 231.3 mil millones	$ 376.8 mil millones	10.2%

Aumento de la salud y el bienestar La conciencia que conduce la demanda de calzado atlético

Mercado mundial de calzado atlético valorado en $ 246.7 mil millones en 2022, que se espera que alcance los $ 347.3 mil millones para 2030, con una tasa compuesta anual del 4.3%.

Segmento de mercado	Valor 2022	2030 Valor proyectado	Tocón
Calzado atlético	$ 246.7 mil millones	$ 347.3 mil millones	4.3%

Preferencia Millennial y Gen Z por ropa deportiva innovadora y tecnológicamente avanzada

Tasas de adopción de tecnología en ropa deportiva:

• Preferencia de integración de tecnología milenario: 78%
• Motivación de compra de la tecnología Gen Z: 82%
• Se espera que el mercado textil inteligente alcance los $ 85.4 mil millones para 2025

Importancia creciente de la autenticidad de la marca y la responsabilidad social

Percepción del consumidor de la responsabilidad social de la marca:

Grupo de edad	Importancia de autenticidad de marca	Impacto de responsabilidad social
Millennials	73%	Es probable que cambie las marcas
Gen Z	83%	Altamente influenciado por los valores de la marca

On Holding Ag (Onon) - Análisis de maja: factores tecnológicos

Tecnología de amortiguación de CloudTec de propiedad como diferenciación clave del producto

En Holding AG desarrolló la tecnología CloudTec en 2010, con 16 elementos de nubes individuales por zapato que proporciona amortiguación adaptativa. I + D Inversiones totalizadas $ 32.4 millones en 2023 Específicamente para la mejora de la tecnología.

Métrica de tecnología	2023 rendimiento
Aplicaciones de patentes de CloudTec	7 nuevas patentes globales
Gastos de I + D	$ 32.4 millones
Iteraciones de material de CloudTec	3 nuevas composiciones de materiales

Inversión continua en investigación y desarrollo para diseños innovadores de calzado

Al mantener la AG asignada 14.2% de los ingresos anuales a la investigación y el desarrollo en 2023, totalizando $ 87.6 millones.

Categoría de inversión de I + D	2023 Gastos
Inversión total de I + D	$ 87.6 millones
Innovación del diseño de productos	$ 41.3 millones
Investigación de Ciencias de Materiales	$ 22.5 millones

Transformación digital de plataformas minoristas y de comercio electrónico

Ventas digitales representadas 38.6% de los ingresos totales en 2023, con $ 213.4 millones generado a través de canales en línea.

Métrica de plataforma digital	2023 rendimiento
Ingresos por comercio electrónico	$ 213.4 millones
Descargas de aplicaciones móviles	1.2 millones
Tasa de conversión en línea	4.7%

Técnicas de fabricación avanzada Mejora del rendimiento del producto y la sostenibilidad

En Holding AG implementado Tecnologías de impresión 3D en fabricación, reduciendo el desperdicio de materiales por 22.5%. Inversiones de fabricación sostenibles alcanzadas $ 45.7 millones en 2023.

Innovación de fabricación	2023 datos
Implementación de impresión 3D	7 instalaciones de producción
Reducción de residuos de materiales	22.5%
Inversión de fabricación sostenible	$ 45.7 millones

On Holding Ag (Onon) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones comerciales internacionales y las leyes de propiedad intelectual

En Holding AG reportó 16 solicitudes de patentes activas al 31 de diciembre de 2022. La Compañía ha registrado marcas comerciales en 42 países a nivel mundial. Los costos de protección de la propiedad intelectual para la empresa fueron de $ 3.2 millones en 2022.

Jurisdicción	Solicitudes de patentes	Registros de marca registrada
Estados Unidos	7	22
unión Europea	5	15
Asia-Pacífico	4	5

Desafíos de protección de patentes

Los gastos de litigio legal relacionados con la protección de la propiedad intelectual fueron de $ 1.7 millones en 2022. La compañía enfrentó 2 desafíos legales relacionados con las patentes durante el año fiscal.

Cumplimiento de los estándares ambientales y laborales

Categoría de cumplimiento	Resultados de auditoría	Tasa de cumplimiento
Estándares ambientales	Certificación ISO 14001	98.5%
Estándares laborales	Auditoría de la Asociación de Trabajo Justo	96.3%

Navegación de regulación comercial internacional

En Holding AG opera instalaciones de fabricación en 5 países, con costos de monitoreo de cumplimiento que alcanzan los $ 2.5 millones en 2022. La compañía mantiene equipos legales en 3 regiones principales para administrar los requisitos regulatorios internacionales.

• Presupuesto de cumplimiento regulatorio: $ 4.8 millones
• Tamaño del equipo legal: 22 profesionales
• Mercados internacionales atendidos: 65 países

On Holding Ag (Onon) - Análisis de mortero: factores ambientales

Compromiso con la producción sostenible y los principios de economía circular

En Holding AG reportó un uso de electricidad 100% renovable en las operaciones globales en 2023. La compañía logró una reducción del 30% en el uso de plástico virgen en la producción de calzado mediante la implementación de estrategias de diseño circular.

Métrica de sostenibilidad	2023 rendimiento
Uso de energía renovable	100%
Material reciclado en zapatos	24.7%
Objetivo de reducción de emisiones de carbono	50% para 2030

Reducción de la huella de carbono a través de procesos de fabricación innovadores

En Holding Ag invirtió $ 12.4 millones en tecnologías de fabricación sostenible en 2023. La compañía redujo las emisiones directas de carbono en un 22.6% en comparación con la línea de base 2022.

Uso de materiales reciclados en la producción de zapatos

En 2023, en Holding Ag utilizó 5.2 millones de botellas de plástico recicladas en la fabricación de calzado. Aproximadamente el 65% de su línea de zapatos CloudTec® incorporaron materiales de poliéster reciclados.

Fuente de material	Cantidad utilizada (2023)
Botellas de plástico recicladas	5,200,000
Poliéster reciclado	62.3 toneladas métricas

Implementar la sostenibilidad ambiental como estrategia de marca central

Sobre la celebración de AG asignó el 8.7% del presupuesto anual de I + D ($ 22.3 millones) para la innovación sostenible en 2023. Las iniciativas ambientales clave incluyen:

• Objetivo de fabricación de residuos cero para 2025
• Embalaje de calzado reciclable al 100% para 2024
• Compromiso de la cadena de suministro neutral en carbono

Inversión de sostenibilidad	Cantidad
Presupuesto de I + D para la sostenibilidad	$ 22.3 millones
Porcentaje del presupuesto de I + 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.