Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product and system safety
• Ecological product design
• Sustainability standards in the supply chain
• Energy and CO2 emissions
• Personnel development
• Employment conditions
• Occupational health and safety
• Diversity and equality
• Social commitment
• Climate Action

Environmental Achievements

• Reduced CO2 emissions by 59% compared to 2019
• Achieved 86% renewable energy share in electricity consumption
• Reduced energy consumption by 4.5% to 406 GWh
• Saved 1,560 tons of CO2, 542 tons of material and 6,335 MWh of energy through industrial remanufacturing
• Zero waste to landfill achieved at Bendix headquarters and eight of ten production facilities (99.8% overall)

Social Achievements

• Launched LinkedIn Learning platform offering 16,000 courses
• Implemented Covid-19 protection measures for employees globally
• Supported employees through short-time working and the Knorr-Bremse Social Fund
• Continued Global Care and Local Care initiatives, supporting NGOs and communities

Governance Achievements

• Established a central compliance structure with a whistleblower system and Code of Conduct training
• Implemented a Conflict Minerals Policy
• Strengthened compliance structures internationally, appointing local Compliance Officers

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacted sustainability measures and projects
• Supply chain disruptions due to the pandemic
• Reduced travel and temporary production interruptions affecting energy consumption and CO2 emissions

Mitigation Strategies

• Mobilized a crisis committee to protect employees and business processes
• Implemented a global employee protection concept with remote working and safety measures
• Monitored suppliers closely and maintained supply chains
• Provided socioeconomic support for employees and aid organizations
• Accelerated digitalization of processes and mobile working

Supply Chain Management

Supplier Audits: 67% of purchase volume assessed

Responsible Procurement

• Supplier Code of Conduct
• Sustainability assessments
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and systems

Reporting Standards

Frameworks Used: GRI, CSR-RUG, UN Global Compact

Certifications: ISO 9001, ISO TS 22163, IATF 16949, ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: KPMG Wirtschaftsprüfungsgesellschaft AG

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 4
• SDG 6

Initiatives contributing to these goals through various programs and strategies

Sustainable Products & Innovation

• Eco-friendly HVAC systems
• Energy-efficient drive systems
• Remanufactured products

Awards & Recognition

• Top Employer for Engineers in Germany
• RoSPA Gold Medal Award (Knorr-Bremse Rail Systems (UK) Ltd)
• Knorr-Bremse Value Award for Responsibility (Bendix)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Anti-corruption and Fair Competition

Environmental Achievements

• Achieved a 69% reduction in Scope 1 and market-based Scope 2 emissions compared to 2018, exceeding the 50.4% target for 2030.
• Increased renewable energy share to 94% in 2022.
• Implemented new photovoltaic installations increasing renewable energy generation by approximately 3,600 MWh/year.

Social Achievements

• Achieved an engagement score of 71 in the 2022 employee survey.
• Launched a mentoring program in Munich to increase the professional potential of female employees.
• Established women’s networks in various locations.

Governance Achievements

• Integrated sustainability targets into the remuneration system for management levels 0-2.
• Increased the compliance organization headcount.
• Implemented a Sustainability-Linked Supply Chain Finance Program (SSCF).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions.
• Soaring inflation and exploding energy prices.
• Shortage of skilled workers.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented energy efficiency measures and increased renewable energy use.
• Launched the ONEHR project for globally standardized HR processes.

Supply Chain Management

Supplier Audits: 30 on-site audits in 2022 (including 9 follow-up audits)

Responsible Procurement

• Supplier Code of Conduct
• Sustainability assessments
• Conflict Minerals Policy
• Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, droughts, tropical cyclones)
• Damage to assets and production disruptions

Transition Risks

• Increased energy and material costs
• Supply chain disruptions
• Changes in customer demand

Opportunities

• Increased demand for sustainable rail transportation
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: KPMG Wirtschaftsprüfungsgesellschaft (limited assurance for selected Scope 3 categories)

UN Sustainable Development Goals

• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 4 (Quality Education)
• SDG 6 (Clean Water and Sanitation)

Initiatives aligned with these goals are described throughout the report.

Sustainable Products & Innovation

• SYNACT® brake family
• Electric power steering (EPS)
• AirSupply Smart
• clean[air] and green[air] air conditioning technologies
• ECOSystem

Awards & Recognition

• Top Employer: Engineering Germany
• Governor’s Award for Environmental Excellence (Bendix)
• Supply Chain Management Award 2022 (NextGen European Distribution Network)

Environmental Metrics

ESG Focus Areas

• Climate protection
• Environmental product design
• Employment conditions
• Personnel development
• Diversity and equal opportunity
• Occupational health and safety
• Product and system safety
• Sustainability in the supply chain
• Human rights
• Combating corruption and bribery

Environmental Achievements

• Reduced total energy consumption by approximately 8% compared with the previous year.
• Reduced absolute Scope 1 and market-based Scope 2 emissions to approximately 47,000 tons of CO2e in 2023 (70% reduction compared with the 2018 base year).
• Increased share of electricity from renewable energy sources to approximately 95%.

Social Achievements

• Improved employee turnover rate to 7.4% (2022: 10.4%).
• Increased employee satisfaction.
• Launched a company childcare center near Munich headquarters.
• Implemented new leadership principles for a modern leadership culture.
• Adopted a Group-wide DEI strategy.

Governance Achievements

• Revised the Executive Board remuneration system, including the addition of clawback and malus provisions.
• Improved ESG ratings from various agencies (ISS ESG, Sustainalytics, MSCI, S&P Global, CDP).

Climate Goals & Targets

Environmental Challenges

• High inflation at the start of the year and increased salary and energy costs.
• Supply chain bottlenecks and isolated crisis situations.
• Geopolitical uncertainties (Russia-Ukraine war, Middle East conflict).
• Potential delays in passing on costs to customers.
• Shortage of skilled workers.

Mitigation Strategies

• Implemented the Profit and Cash Protection Program (PCPP) for price and cost control.
• Successfully negotiated prices with customers.
• Implemented efficiency measures.
• Developed risk mitigation measures for supply chain disruptions.
• Expanded recruitment processes and channels.
• Introduced new leadership principles and a Group-wide DEI strategy.

Supply Chain Management

Supplier Audits: 3,200 suppliers with valid sustainability assessments (71% of global purchasing volume); 10 on-site audits conducted in 2023.

Responsible Procurement

• Group-wide Supplier Code of Conduct.
• Sustainability-Linked Supply Chain Finance Program (SSCF).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Costs associated with regulatory requirements

Opportunities

• Growing demand for energy-efficient and eco-friendly transportation solutions.

Reporting Standards

Frameworks Used: UN Global Compact, UN Guiding Principles on Business and Human Rights, International Labour Organization (ILO) conventions, EU Taxonomy Regulation, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, IATF 16949, ISO/TS 22163

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• Systems for electric passenger and cargo transportation
• Energy-efficient products and solutions