Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Quality
• Sustainability

Environmental Achievements

• Reduced CO2 emissions by an unspecified amount through better insulation and renewable energy solutions at the Bremen headquarters.
• Significant energy savings and CO2 reduction potential identified through a study on industrial insulation.

Social Achievements

• 26% reduction in lost time incidents and a 20% reduction in total recordable cases across the KAEFER Group in 2012.
• Successful Health & Safety Year 2012.
• First worldwide employee survey with a 70% response rate.
• Bursary programme for female students in South Africa.
• MovIEE (Moving India’s SMEs towards a sustainable future) project.
• Hiring of six disabled employees in Saudi Arabia.

Governance Achievements

• Implementation of a Post-Merger Integration Framework (PMI) for smooth integration of acquired companies.
• Strengthening of regional management structures.
• Introduction of a 'Purchasing Excellence' programme.

Climate Goals & Targets

Environmental Challenges

• Economic challenges across the globe.
• Unpredictability of climate change and rising energy costs.
• Decentralized purchasing strategy.
• Integrating new companies into KAEFER.
• Maintaining focus on health and safety across diverse global operations.
• High temperatures and unpredictable weather in Saudi Arabia impacting productivity.

Mitigation Strategies

• Investing in quality as a long-term strategy.
• Introduction of professional category management and eProcurement tool.
• Implementation of PMI Framework.
• Ongoing communication and awareness campaigns.
• Focus on risk assessment, training, and health initiatives.
• Improved productivity without compromising safety in Saudi Arabia.

Supply Chain Management

Responsible Procurement

• Purchasing Excellence program

Climate-Related Risks & Opportunities

Physical Risks

• Unpredictable climate change, rising energy costs

Opportunities

• Promoting energy efficiency through better insulation and renewable energy solutions

Awards & Recognition

• Merck’s best contract partner award

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Cultural

Environmental Achievements

• Reduced paper consumption by 9%
• Introduced electric vehicles
• Improved CO2 emissions in company cars
• Successful completion of MovIEE project (energy efficiency in India)

Social Achievements

• Improved health & safety performance by over 20% for the second year in a row
• Launched Lean Journey to improve efficiency and safety
• Supported various social projects globally (e.g., Saving Grace, KARP)
• KAEFER SA in Poland received ‘Social Responsibility Leader’ award

Governance Achievements

• Implemented KAEFER Code of Business Conduct in ten languages
• Established Sustainability Champions Network
• Implemented Lean Management principles

Climate Goals & Targets

Environmental Challenges

• Difficult infrastructural conditions in some work areas
• Strong price competition
• Predicted effects of climate change on offshore and coastal facilities
• Risks associated with business operations (health, safety, environmental)

Mitigation Strategies

• Risk management and Crisis Management Policy in place
• Lean Journey to improve efficiency and reduce costs
• Active participation in industry associations (EiiF, FESI, AEEA)
• Awareness raising on health, safety, and environmental risks

Supply Chain Management

Responsible Procurement

• Harmonisation of material management systems
• Implementation of spend visibility tool

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Flooding
• Heat waves
• Severe weather conditions

Transition Risks

• New regulations and standards on energy efficiency and emission reduction

Opportunities

• Increased demand for complete insulation services due to focus on energy efficiency

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001 (42 companies), ISO 14001 (25 companies), OHSAS 18001 (34 companies)

Awards & Recognition

• Green Fleet Award (Volkswagen)
• Social Responsibility Leader (KAEFER SA, Poland)

Environmental Metrics

ESG Focus Areas

• Economic performance
• Market presence
• Labour Relations
• Occupational health & safety
• Training and education
• Diversity
• Energy
• Anti-corruption/compliance

Environmental Achievements

• Reduced CO2 emissions from company cars from 150 g/km in 2010 to 118 g/km in 2016.
• Installed two wind turbines at Jarrow office in the UK, supplying sufficient energy to power both the office block and production workshop.
• Replaced all light fixtures at main KAEFER Energy office and scaffolding warehouse in Norway with LED lighting, projecting approximately 50% savings in energy consumption.

Social Achievements

• Launched KAEFER AIDS Relief Programme (KARP) in South Africa.
• Organised running events and food donation drives.
• Supported charitable initiatives for refugees in Bremen, Germany.

Governance Achievements

• Introduced KAEFER Code of Business Conduct (CoC) in 2011.
• Established regional Ethics Committees at KAEFER WANNER in France.
• Published an Integrity Guide at KAEFER WANNER in France to complement the CoC.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts, such as flooding and severe weather.
• Maintaining a safety culture across a large, multinational organization.
• Ensuring compliance across diverse legal and regulatory environments.

Mitigation Strategies

• Implementing lean management principles to improve efficiency and reduce waste.
• Developing and implementing a global safety culture training program.
• Establishing a Compliance Management System and providing anti-corruption training.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Severe weather

Reporting Standards

Frameworks Used: GRI G4/Standards at core level

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Health & Safety

Environmental Achievements

• Reduced international travel from headquarters by 71% compared to the previous year.
• Reduced energy consumption at the Bremen branch office by 20%.
• Launched a global Environmental Policy in November 2020.
• Initiatives to recycle insulation materials and abrasives.
• Installation of bifacial solar panels in Australia, generating 140KW/month over summer.

Social Achievements

• Launched a global charity project “Venuslauf” raising over €20,000.
• Successful implementation of a SMART Choices behavioral program in the APAC region.
• Acquisition of Wood Group Industrial Services (WGIS) in the UK & Ireland.
• Organized numerous virtual bonding events for employees of WGIS and KAEFER.
• Supported educational initiatives in South Africa and Brazil.

Governance Achievements

• Roll-out of requalification courses for the Code of Business Conduct.
• KAEFER WANNER awarded ISO 37001 Certification for anti-corruption.
• Launched a group-wide “Compliance Helpline”.

Climate Goals & Targets

Environmental Challenges

• Global COVID-19 pandemic impacting operations and employee well-being.
• Maintaining sustainability initiatives during the pandemic.

Mitigation Strategies

• Shift to remote working and digital tools.
• Implementation of new cooperation methods.
• Increased funding for research into new technologies.
• Virtual bonding events and wellbeing programs for employees.

Supply Chain Management

Responsible Procurement

• Working with suppliers on more sustainable practices (e.g., paperless reporting, recycling).

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and green technologies (e.g., PICC).

Reporting Standards

Frameworks Used: ESG, GRI, UN SDGs

Certifications: ISO 37001 (KAEFER WANNER)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 13 (Climate Action)
• SDG 16 (Peace, Justice and Strong Institutions)

KAEFER's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• PICC (Power Induced Catalytic Combustor)

Awards & Recognition

• “Małopolska Young Worker-Friendly Employer” (Poland)

Environmental Metrics

ESG Focus Areas

• Climate Protection
• Waste Management
• Energy Efficiency
• Health & Safety
• Communities
• Diversity
• Training
• Values and Human Rights
• Compliance
• Leadership
• Supply Chain

Environmental Achievements

• Several KAEFER business units underwent ISO 14001 certification.
• Launched a new, improved approach to surface protection, significantly reducing overspray and waste.
• Implemented DPMS (Digital Project Management Solutions), resulting in 10-30% efficiency improvement in administrative processes.
• Supported various environmental NGOs globally (Clean Shores Global, SOS Mata Atlântica Foundation, DK Clean Up, Live Life Always).

Social Achievements

• Launched a global HSE campaign.
• Implemented mental health initiatives, including training Mental Health First Aiders in the UK & Ireland.
• Launched diversity and inclusion campaign 'PLURAL' in Brazil.
• Welcomed two new employees with Down’s Syndrome in the UK & Ireland.
• Raised over €35,000 for cancer charities through the 'Venuslauf' initiative.

Governance Achievements

• KAEFER WANNER in France received ISO 37001 certification.
• 100% of KAEFER's Management Boards worldwide received anti-corruption training.
• Implemented a new Customer Relationship Management (CRM) tool in Germany.
• Conducted a global compliance survey with approximately 2,700 participants.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on operations.
• Supply chain disruptions and material shortages.
• Maintaining focus on safety despite low incident levels.
• Addressing male dominance in the industry.

Mitigation Strategies

• Integrating ESG into LIFT2025 strategy.
• Developing a global Group ESG policy, strategic ESG Roadmap and Vision.
• Adapting sourcing strategies to address supply chain volatility.
• Continuous improvement in safety culture and best practice sharing.
• Implementing diversity and inclusion programs (e.g., PLURAL in Brazil).

Supply Chain Management

Responsible Procurement

• Supplier qualification

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN SDGs, ESG

Certifications: ISO 14001, ISO 45001, ISO 37001 (KAEFER WANNER, France)

UN Sustainable Development Goals

• SDG 3: Good health and well-being
• SDG 13: Climate action
• SDG 16: Peace, justice and strong institutions

Awards & Recognition

• Green Industry Level 3 “Green System” award (KAEFER Thailand)

Environmental Metrics

ESG Focus Areas

• GHG emissions
• Waste
• Health & Safety
• People
• Supply chain sustainability
• Economic performance
• Anti-corruption

Environmental Achievements

• Reduced fuel consumption by nearly 10% in Germany through encouraging employees to avoid unnecessary journeys and drive more defensively.
• Initiated a group-wide emissions inventory of Scope 1 and 2 GHG emissions and gathered data for the years 2020-2022.
• Created a data capture system providing a comprehensive picture of emissions going forward.
• Multiple waste prevention campaigns around the world, including recycling of safety helmets and sourcing of more durable safety clothing.
• Switch to using recyclable sole boards for scaffolding and recyclable bags for transporting prefabricated materials in the Benelux countries.

Social Achievements

• Launched PLURAL initiative in Brazil to focus on diversity (generations, genders, disabilities, and ethnicities).
• Inaugural Reconciliation Action Plan (RAP) in Australia endorsed by Reconciliation Australia.
• Partnership with three Down’s Syndrome charities in the UK & Ireland to fundraise and integrate people with Down’s syndrome into work.
• KAEFER’s “We take action 4” campaign focusing on health, safety, environment, and quality.

Governance Achievements

• Comprehensive ESG strategy developed in line with UN’s Sustainability Goals and stakeholder expectations.
• First-time adoption of rigorous double materiality analysis.
• Established a double materiality assessment process.
• Improved processes around discrimination claims and grievance mechanism.
• Published a Supplier Code of Conduct (SCoC) in 2022.

Climate Goals & Targets

Environmental Challenges

• Supply shortages, delays, and project cancellations due to volatile market environment.
• Managing GHG emissions across the whole value chain.
• Understanding and mitigating waste created through activities.
• Maintaining high health and safety standards in diverse and challenging work environments.
• Improving diversity and equal opportunities in traditionally male-dominated industries.
• Ensuring compliance with evolving regulatory frameworks on supply chain sustainability.
• Managing compliance risks related to corruption and fraud.

Mitigation Strategies

• Decentralized business model enabling adaptation within business units.
• Defined group-wide emissions inventory and data capture system.
• LEAN methodology to minimize waste from operational processes.
• Safety Culture campaign to develop risk awareness and safer workplace.
• Initiatives to improve diversity and inclusion, including training and programs.
• Global ESG supplier risk management for human rights and environmental standards.
• Compliance Management System (CMS) to prevent, detect, and resolve misconduct.

Supply Chain Management

Responsible Procurement

• Long-term framework agreements with certified suppliers
• Supplier Code of Conduct (SCoC)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals

Certifications: ISO 14001, ISO 45001, ISO 9001

Awards & Recognition

• Beale Culture Award (Australia)

Environmental Metrics

ESG Focus Areas

• GHG Emissions
• Waste
• Health & Safety
• People
• Anti-Corruption
• Supply Chain Sustainability
• Economic Performance

Environmental Achievements

• 88% of waste correctly sorted
• Reduced Scope 1 & 2 emission intensity to 17.2 g/CO2e (from 17.0 g/CO2e in 2022)
• 73% of turnover ISO 14001 certified (from 71% in 2022)

Social Achievements

• Achieved an eNPS (Employee Satisfaction) score of 30
• 20 training hours per employee (from 17 in 2022)
• 95% Code of Conduct training participation (from 92% in 2022)

Governance Achievements

• A portion of the variable remuneration of the Executive Board was linked to ESG-related matters.
• ESG component embedded in syndicated credit facility (Sustainability Linked Loan)
• External audit of group-wide compliance program by KPMG Germany

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled labor
• Supply chain disruptions due to geopolitical conflicts and economic difficulties
• Higher energy and raw materials costs
• Risks associated with acquisitions
• Meeting stakeholder expectations related to ESG
• Variety of risks and regulations due to global presence
• Maintaining service quality and adapting to changing customer preferences
• Risks associated with contracts (delays, cost overruns)
• Cyberattacks and IT system disruptions
• ESG gaps in supplier compliance and performance
• Currency exchange rate fluctuations
• Changes in market interest rates
• Risks related to financing and liquidity

Mitigation Strategies

• Diversification across countries and industrial segments
• Global Operations Excellence program
• Thorough assessment of acquisition targets
• Clear Sustainability & ESG strategy based on double materiality
• Ongoing monitoring of the external environment
• Comprehensive risk assessment before entering contracts
• Robust IT Governance and Security framework
• Group-wide risk management system for ESG due diligence in the supply chain
• Hedging strategies for currency and interest rate risks
• Group-wide Treasury Management System

Supply Chain Management

Supplier Audits: >50% of global spend assessed via supplier self-assessments in 2023; audit scheme implemented

Responsible Procurement

• Supplier Code of Conduct
• ESG self-assessments from suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Rising mean temperatures

Transition Risks

• Increased pricing of GHG emissions
• Enhanced emissions reporting obligations
• Mandates on, and regulation of, existing products and services
• Exposure to litigation
• Changing customer behaviour
• Uncertainty in market signals
• Increased cost of raw materials
• Increased stakeholder concern or negative feedback
• Costs to transition to lower emissions technology

Opportunities

• Use of more efficient modes of transport
• Move to more efficient buildings
• Increased demand for energy efficiency services
• Increased demand related to construction and maintenance of new low-carbon energy infrastructure
• Development of climate adaptation solutions
• Access to new markets

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Limited assurance for Scope 1 & 2 emissions and LTIF by an external auditor

UN Sustainable Development Goals

• Not disclosed

KAEFER’s comprehensive ESG strategy is in line with the United Nation’s Sustainable Development Goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Various safety awards in different countries
• Pró-Ética Seal in Brazil