Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Diversity & Inclusion
• Human Rights
• Water
• Waste (Solid Residues)
• Energy & Climate
• Sustainable Supply Chains
• Compliance & Anti-Corruption

Environmental Achievements

• Reduced saline wastewater discharged into surface water for potash production (4.8 million m³ in 2018 vs 6.2 million m³ in 2017)
• Commissioning of the kainite crystallisation and flotation (KCF) facility at the Hattorf site, leading to a 20% reduction in saline wastewater from the Werra plant.
• Recycled 1.0 million tonnes of residue for evaporated salt production.
• Covered an additional 5.9 hectares of tailings pile surface area.

Social Achievements

• 71% of employees reached by communication measures and trained in compliance matters (2017: 59%)
• Launched the “Growth for Uganda” project, training about 131,000 small farmers in better agricultural techniques.
• Implemented a uniform system for recording near-accidents at all K+S production sites.

Governance Achievements

• Established a Group-wide compliance management system.
• No incidents of corruption or penalties paid in 2018.
• Introduced age limits for members of the Board of Executive Directors and the Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• Weather-related production stoppages at the Werra potash plant due to extreme drought, resulting in a €110 million negative EBITDA effect.
• Limited personnel and machinery availability at the Werra plant.
• Low levels of recoverable materials at the Unterbreizbach site.
• Geological challenges at the Neuhof site.
• Increased logistics costs, especially in North America.
• More stringent requirements regarding the outdoor storage of de-icing salt in North America.

Mitigation Strategies

• Implementation of the SHAPING 2030 strategy, focusing on efficiency improvements and cost savings.
• Development of additional measures for wastewater disposal, including temporary storage and discharge into inactive mines.
• Continuous expansion of basin capacity on-site.
• Long-term supply agreements to secure transport capacity.
• Environmental audits to ensure compliance with new local requirements for de-icing salt storage.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• K+S Group Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme drought

Transition Risks

• More stringent environmental regulations

Opportunities

• Increased demand for potash due to climate change impacts on agriculture

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 45001 (being introduced at production sites), DIN EN ISO 14001:2015 (environmental management), DIN EN ISO 50001:2015 (energy management)

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• People
• Environment
• Business Ethics

Environmental Achievements

• Additional reduction of saline process water from potash production in Germany by 0.8 million m³ p.a.
• Amount of residue used for other purposes than tailings or increased amount of raw material yield by 1.5 million t p.a.
• Additional area of tailings piles covered by 8.7 ha
• Carbon footprint for power consumed reduced by -1.7%
• Specific greenhouse gas emissions (CO2) in logistics reduced by -11.1%
• Critical suppliers aligned with the K+S Group Supplier Code of Conduct increased to 23.2%
• Spend coverage of the K+S Group SCoC increased to 44.9%

Social Achievements

• Developed a comprehensive method for human rights due diligence and applied this successfully in a pilot project in Chile.
• Positive perception of an inclusive working environment by employees increased to 54.4%
• 100% of K+S employees were reached with communication measures and trained appropriately in compliance topics.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Extreme drought in 2018 causing disposal problems.
• Downturn in the potash market negatively impacting earnings.
• Weakening potash market in early fall of 2019.
• Freak weather in important sales regions and a temporary import ban on potash in China leading to a massive decline in demand and prices.
• High level of indebtedness due to investment in new potash plant in Canada and environmental protection measures at German production sites.

Mitigation Strategies

• Readjusting strategy.
• Production cuts.
• Revising earnings expectations.
• Accelerating the implementation of Shaping 2030 by adopting a comprehensive package of measures aimed at selling parts of the Company in the short term.
• Focusing on further increases in efficiency and production, as well as portfolio optimization.
• Selling assets that are not part of the core business.
• Restructuring or selling activities that don’t add value.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• K+S Group Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Droughts

Transition Risks

• More stringent regulations
• Changes in energy prices

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, IIRC recommendations, UN Global Compact

Certifications: DIN EN ISO 9001, DIN EN ISO 14001:2015, DIN EN ISO 50001:2015, DIN EN ISO/IEC 17025

Third-party Assurance: DELOITTE GMBH WIRTSCHAFTSPRÜFUNGSGESELLSCHAFT

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 12
• SDG 13
• SDG 15
• SDG 16

Not disclosed

Sustainable Products & Innovation

• Roll-Kali

Awards & Recognition

• Product of the Year 2019 (saldoro sea salt)
• German Brand Award 2019 (saldoro)

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Diversity & Inclusion
• Human Rights
• Water
• Waste
• Energy & Climate
• Sustainable supply chains
• Compliance & Anti-Corruption

Environmental Achievements

• Reduced saline process water from potash production in Germany by 2.9 million m³ (compared to 3.5 million m³ in 2019)
• Saved 1.2 million tonnes of residue by implementing technical measures for increasing raw material exploitation or by recovering them
• Covered an additional 0.2 ha of tailings pile area

Social Achievements

• Reduced employee turnover rate to 6.0% (from 7.9% in 2019)
• Implemented the first elements of a modern, integrated HR management system
• Restructuring of administrative functions was carried out almost entirely through a voluntary program

Governance Achievements

• Successfully implemented the package of measures to reduce debt
• Established a joint venture with Remondis (ReKS) for waste management
• Streamlined administrative functions at the Kassel site, resulting in annual cost savings of €60 million

Climate Goals & Targets

Environmental Challenges

• Lower potash prices
• Weaker de-icing salt business due to weather conditions
• COVID-19 pandemic
• One-off expenses associated with the restructuring of administrative functions
• Impairment loss on assets

Mitigation Strategies

• Consistent implementation of measures to reduce debt (including sale of Americas operating unit)
• Restructuring of administration
• Strategic realignment in the waste management business (joint venture with Remondis)
• Comprehensive prevention and effective crisis management to address the challenges of the COVID-19 pandemic
• Optimizing cost and capital expenditure structure in production

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• K+S Group Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Pandemics and natural disasters
• Weather-related fluctuations in demand
• Water inflow

Transition Risks

• Changes in the legal environment (Water Framework Directive, licenses for residue disposal)
• Energy costs
• Carbon dioxide pockets in deposits
• Changes in the composition of crude salt

Opportunities

• Increase in demand/price increase
• Market penetration, market development, expansion in capacity, cost optimization, acquisitions and/or strategic partnerships, innovation

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact

Certifications: DIN EN ISO 9001, DIN EN ISO 14001:2015, DIN EN ISO 50001:2015

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft (limited assurance for non-financial statement)

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 3 (Good Health and Well-being)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 16 (Peace, Justice and Strong Institutions)

K+S products contribute to food production, resilient infrastructure, healthcare, efficient resource use, climate action, and responsible governance.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• German Brand Award for Salodoro brand (2019)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Health & Safety
• Diversity & Inclusion
• Sustainable Supply Chains
• Compliance & Anti-Corruption

Environmental Achievements

• Reduction of saline process water in Germany to 2.6 million m³ (from 3.5 million m³ in 2019)
• Reduction in specific CO2 emissions to 270.8 kg/t (new metric since 2023)
• Halving CO2 emissions at the Werra plant (long-term goal)

Social Achievements

• Lost Time Incident Rate (LTI rate) of 7.6 (down from 10.4 in 2019)
• 91.8% of critical suppliers aligned with the Supplier Code of Conduct (by end of 2025)
• 91.4% of purchasing volume covered by Supplier Code of Conduct (by end of 2025)

Governance Achievements

• 100% coverage of K+S Group companies with a standardized compliance risk analysis (by end of 2023)

Climate Goals & Targets

Environmental Challenges

• High energy costs
• Fluctuations in potash prices due to competition and contracts with major customers in China and India
• Supply chain disruptions (implied)

Mitigation Strategies

• Cost reliefs of about €100 million, mainly for energy
• Optimization of existing supply chain and warehouse network (expected to yield €30 million annually)
• Capacity expansion and cost position improvement at various sites (expected to yield €50 million annually from 2023)
• Werra 2060 project to reduce environmental impact and improve cost position

Supply Chain Management

Supplier Audits: 91.8% of critical suppliers aligned with the Supplier Code of Conduct (by end of 2025)

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities