Climate Change Data

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Labor practices
• Human rights
• Ethics and integrity
• Prevention of corruption and anti-competitive behavior
• Dual-use products and arms
• Product responsibility
• Economic performance
• Training and education
• Environmental protection
• Supply chain
• Social commitment

Environmental Achievements

• Reduced warranty claims by 40% between 2011 and 2017.
• Successfully implemented RoHS II Directive requirements.
• Substituted substances of very high concern with more environmentally friendly alternatives in activated carbon production.
• Reduced water consumption by approximately 5% in 2017 compared to the previous year.

Social Achievements

• Achieved a 5.1% global employee turnover rate (2.7% in Germany).
• Ranked among the top 100 most attractive employers in Germany.
• Implemented measures to raise interest in management among women.
• Offered comprehensive medical care and health promotion programs to employees.

Governance Achievements

• Established a group-wide Compliance Management System (CMS).
• Conducted compliance reviews at four companies in 2017.
• Implemented a risk-oriented process for assessing sales and distribution partners (SCRPA).

Climate Goals & Targets

Environmental Challenges

• Potential loss of reputation or orders in the event of increased accident rates.
• Indirect risks from business relationships if contractual partners violate occupational health and safety regulations.
• Shortage of skilled professionals.
• Potential for human rights violations in the supply chain.
• Cyberattacks on medical devices and IT systems.

Mitigation Strategies

• Systematic training on occupational health and safety.
• Regular evaluation of potential occupational health and safety risks.
• Attractive working conditions and employee development programs.
• Supplier audits and a Code of Conduct for suppliers.
• Secure development life cycle (SDLC) for products.

Supply Chain Management

Supplier Audits: 76 in 2017

Responsible Procurement

• Code of Conduct for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: OHSAS 18001 (40 companies), ISO 14001 (41 companies), ISO 9001, ISO 13485

Third-party Assurance: Internal Audit and Legal Department

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Corporate Health Award (2016)

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Ethics and integrity
• Environmental protection
• Supply chain
• Social commitment
• Labor practices
• Human rights
• Product responsibility
• Economic performance
• Training and education
• Prevention of corruption and anti-competitive behavior
• Dual-use products and arms

Environmental Achievements

• Reduced energy consumption by approximately 3 percent compared with the previous year.
• Reduced CO2 emissions by 10.7 percent between 2015 and 2017.
• Successfully completed the first external audit within the scope of the Medical Device Single Audit Program (MDSAP).
• Increased recycled soda lime absorber volume year on year (from 14.5 t to 30.5 t).

Social Achievements

• Improved accident rates (LTIR and TRIR) year on year in 2018.
• Employee turnover at Dräger stood at 5.0 percent Group-wide (2017: 5.1 percent).
• 85 percent of employees stated they were very satisfied with their work and with Dräger as a company.
• 72 trainees were offered employment following completion of their training.
• Dräger became the first company in Schleswig-Holstein to join the “Unternehmen vernetzen Väter” network.

Governance Achievements

• No deviations from the DCGK’s recommendations requiring explanation.
• Increased the number of compliance officers at the company in 2018.
• Global Compliance Day brought together 27 participants from 20 countries.

Climate Goals & Targets

Environmental Challenges

• Demographic change and the shortage of skilled professionals.
• Potential loss of reputation or orders in the event of increased accident rates.
• Indirect risks from business relationships if contractual partners violate occupational health and safety regulations.
• Potential for corruption in donations.
• Cyber-attacks on hospitals and IT systems.

Mitigation Strategies

• Attractive working conditions to retain employees.
• Supplier and contractor risk assessment and mitigation through contractual agreements and supplier audits.
• Strict stipulations and principles for donations in line with compliance management.
• Secure Development Lifecycle to protect devices from cyber-attacks.
• Product Security Page for customers to report potential risks.

Supply Chain Management

Supplier Audits: 95 (2018)

Responsible Procurement

• Supplier code of conduct (supplier CoC)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core1 option)

Certifications: ISO 9001, ISO 13485, OHSAS 18001 (transitioning to ISO 45001)

Sustainable Products & Innovation

• Polaris operating room light with sterile handle

Awards & Recognition

• oekom research “Prime” label
• EcoVadis “Silver” status
• Statista and “brand eins” best partners list (161st overall, 6th in medical devices sector)
• Fair Company seal
• Top 10 most attractive employers (trendence Young Professional Barometer 2018)
• Top 100 most attractive employers (trendence Absolventenbarometer 2018)

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Ethics and integrity
• Labor practices
• Human rights
• Environmental protection
• Supply chain
• Social commitment
• Product responsibility
• Economic performance
• Training and education

Environmental Achievements

• Reduced CO2 emissions by 12.1 percent between 2015 and 2019 (target achieved in 2019)
• Reduced fuel consumption of company car fleet by approximately 14 percent in 2020 and 27 percent between 2015 and 2020
• Reduced packaging material through interdisciplinary working group and conversion of transport packaging to reusable containers
• Increased recycled products containing soda lime from 54.4 t to 71.4 t, saving approximately 33 t of CO2 in 2020
• Reduced energy consumption by approximately 9.3 percent compared with the previous year and 37 percent since 2015
• ISO 14001 certification of the subsidiary in Saudi Arabia

Social Achievements

• Reduced employee turnover group-wide to 4.3 percent in 2020 (from 5.0 percent in 2019)
• Achieved a satisfaction score of 84 percent of employees very satisfied with their work and with Dräger as an employer (2019 survey)
• Received the Fair Company seal in 2020
• Ranked Germany’s ›Most valuable employer for the public good‹ in 2020
• Draeger Colombia S. A. received the ›Great Place to Work‹ certification in 2020
• Increased the number of female employees at its locations in Saudi Arabia
• Received the ›TOTAL E-QUALITY‹ rating
• Implemented a special thank-you bonus to all eligible employees worldwide due to the COVID-19 pandemic
• Offered a one-time bonus of five shares to all eligible Dräger employees in Germany

Governance Achievements

• Issued an ESG-linked note loan in the amount of EUR 100 million
• Received an AA rating in the MSCI ESG ratings
• Awarded ISS ESG Corporate Rating Prime label (best rating in the health care equipment and supplies industry)
• EcoVadis CSR assessment placed Dräger among the top five percent of the sector, earning Gold status
• Global rollout of the Web-based Dräger Integrity Channel to supplement the whistle-blower system (available in 52 countries)

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled professionals
• Cyberattacks on hospitals and IT systems
• Potential loss of reputation or orders in the event of increased accident rates
• Indirect risks from business relationships (e.g., contractual partners violating occupational health and safety regulations)
• Travel restrictions due to the coronavirus pandemic impacting supplier audits

Mitigation Strategies

• HR strategy to attract and retain qualified employees (2018-2023)
• Secure Development Lifecycle to protect products from cyberattacks
• Supplier and contractor risk mitigation through qualification processes, contractual agreements, and supplier audits
• Remote audits to partially offset travel restrictions
• Continuous improvement of the Compliance Management System (CMS)

Supply Chain Management

Supplier Audits: 95 (2020)

Responsible Procurement

• Supplier code of conduct (78% of production material purchasing volume covered by end of 2020)
• Automated partner screening for sanctions and criminal activities
• Supplier questionnaire on occupational safety and environmental protection
• Supplier audits for compliance with supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Business areas in a future hydrogen economy

Reporting Standards

Frameworks Used: GRI Standards (Core1 option)

Certifications: ISO 45001 (45 companies), ISO 14001 (46 companies), ISO 9001, ISO 13485

Third-party Assurance: Internal Audit and Legal department audit

UN Sustainable Development Goals

• 3 (Good Health and Well-being)
• 8 (Decent Work and Economic Growth)
• 9 (Industry, Innovation and Infrastructure)
• 12 (Responsible Consumption and Production)
• 13 (Climate Action)

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Energy-efficient compressors
• Oil-free compressors for hospital compressed air supply systems
• Products for measuring methane emissions

Awards & Recognition

• Germany’s Corporate Health Award (2019)
• CLEVIS Future Talents Report STAR employer (2020)
• Ranked among top three employers for student interns in Germany (2020)

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Working conditions
• Human rights
• Ethics and integrity
• Prevention of corruption and anticompetitive behavior
• Dual-use products and arms
• Product responsibility
• Economic performance
• Training and education
• Environmental protection
• Supply chain
• Social commitment

Environmental Achievements

• Reduced CO₂ emissions by 27 percent between 2015 and 2020 (partially pandemic-related)
• Achieved CO₂ neutrality by 2045 interim target: Reduction of CO₂ emissions by 33 percent compared with the base year 2015
• First-time ISO 14001 certification of the subsidiary in Saudi Arabia
• Reduced fuel consumption of the company car fleet by roughly 23 percent between 2015 and 2021
• Reduced packaging material through environmentally friendly packaging for several products and converting further transport packaging to reusable containers
• Switched several processes to digital signatures
• Achieved 80 percent of purchasing volume covered by our supplier code of conduct

Social Achievements

• Increased the percentage of female managers by 2.1 percent between 2020 and 2021
• Achieved a satisfaction score of ≥ 5.5 (on a scale from 1 to 7) in the 2021 global employee survey on questions relating to the work environment and health
• Received the Fair Company seal in 2021
• Ranked Germany’s ›Most valuable employer for the public good‹ for the second year in a row

Governance Achievements

• Implemented a new Group-wide regulatory landscape and adapted Principles of Business and Conduct
• Introduced a risk-oriented process for assessing sales and distribution partners (SCPIA)
• Revised and optimized the SCPIA process and subsequently rolled it out

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic impacting operations and employee health
• Shortage of skilled professionals
• Increased accident rates in 2021 following a significant drop in 2020
• Higher than expected employee turnover in 2021
• Cyberattacks on hospitals and IT systems
• Travel restrictions impacting supplier audits

Mitigation Strategies

• Coronavirus crisis team continuously adapting measures
• HR strategy to attract and retain qualified employees
• Focus on raising safety awareness and preventing dangerous work situations
• Secure Development Lifecycle to protect products from cyberattacks
• Remote audits to offset travel restrictions

Supply Chain Management

Supplier Audits: 111 audits (2021)

Responsible Procurement

• Supplier code of conduct (replaced by Code of Conduct for Business Partners in 2022)
• Sustainability assessment for new and important suppliers starting in 2022

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 45001 (45 companies), ISO 14001 (47 companies)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Report details how initiatives contribute to these goals

Sustainable Products & Innovation

• Energy-efficient compressed air supply systems for hospitals
• Anesthesia devices minimizing climate-damaging anesthetic consumption

Awards & Recognition

• ISS ESG Corporate Rating Prime label (2020)
• EcoVadis Gold status (2020)
• MSCI ESG Ratings AA (2021)
• Germany’s Climate-Conscious Companies 2022 (CAPITAL magazine)

Environmental Metrics

ESG Focus Areas

• Economy
• Environment
• Social issues
• Supply chain

Environmental Achievements

• Reduced CO2 emissions by 18 percent compared to the previous year (2022: 76,698 t; 2021: 93,739 t)
• Reduced direct and indirect CO2 emissions by around 38 percent since 2015
• Retained gold status in the EcoVadis CSR rating in 2022, scoring among the top one percent in the industry

Social Achievements

• 88 percent of purchasing volume of production materials from suppliers who have signed the company's 'Code of Conduct for Business Partners' (increase of seven percent compared to the previous year)
• Internal information platform for sustainable projects ensures transparency and exchange among employees

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 'Code of Conduct for Business Partners'

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Dräger was again awarded the Total E-Quality award in 2023, which recognizes companies that successfully implement gender equality in their HR and organizational policies.
• Participation rate in the 2023 employee survey reached a high level of 83.7%.

Governance Achievements

• Drägerwerk AG & Co. KGaA has complied with the recommendations of the German Corporate Governance Code in the version dated April 28, 2022, apart from two deviations concerning the Executive Board's remuneration.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• High inflation rates
• Rising interest rates
• Geopolitical uncertainties
• Strong competition
• Stricter regulatory requirements
• Increasing connectivity of devices and associated data protection requirements
• Planned EU ban on PFAS from 2025

Mitigation Strategies

• Improved delivery capability
• Successful cost management
• Price enforcement
• Restructuring or discontinuation of unprofitable activities
• Customer orientation
• Innovation
• Cooperation agreements and acquisitions
• Strengthening our system business
• Development of digital applications
• Expanding our profitable range of accessories, consumables, and services
• Adapting the relevant processes and the respective structural and procedural organization in the areas of product and quality management
• Intensive efforts in the ongoing consultation process regarding PFAS

Supply Chain Management

Responsible Procurement

• Strict quality standards apply to supplier selection and procurement processes.
• Binding price agreements with all strategic suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Tornadoes

Transition Risks

• EU ban on PFAS

Awards & Recognition

• EcoVadis Gold status
• ISS ESG Corporate Rating Prime Label
• Top employer

Environmental Metrics

ESG Focus Areas

• Human Rights
• Environmental Sustainability
• Occupational Health and Safety

Environmental Achievements

• Achieved ISO 14001 certification
• Ecovadis certification for environmental protection, human rights, ethics, and sustainable procurement

Social Achievements

• Implementation of Principles of Business and Conduct for all employees with training provided
• Over 80% coverage of Code of Conduct for Business Partners in production materials for several years
• Establishment of a freely accessible complaints mechanism (Dräger Integrity Channel)

Governance Achievements

• Appointment of a Human Rights Officer to monitor the risk management system and report to the management board
• Annual risk analysis to review and further develop the effectiveness of preventive and remedial measures
• Preparation of an annual report on compliance with the due diligence obligations under the LkSG for the Federal Office of Economics and Export Control (Bafa)

Climate Goals & Targets

Environmental Challenges

• Potential human rights risks related to occupational health and safety, inadequate working conditions in the supply chain (forced labor, child labor, slavery), general environmental risks, unequal treatment/discrimination, inadequate remuneration, and prevention of freedom of association.

Mitigation Strategies

• Implemented a human rights-related risk management system using Ecovadis for supplier assessment and risk classification.
• Developed and implemented a Code of Conduct for Business Partners.
• Established a complaints mechanism (Dräger Integrity Channel).
• Regular internal audits and external ISO certifications (ISO 45001, ISO 14001).

Supply Chain Management

Responsible Procurement

• Code of Conduct for Business Partners
• Supply Chain Handbook for Suppliers
• Supplier self-disclosures
• Ecovadis pre-check for new suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Universal Declaration of Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, OECD Guidelines for Multinational Enterprises, German Supply Chain Due Diligence Act (LkSG)

Certifications: ISO 45001, ISO 14001, Ecovadis