Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Ongoing market distortions in China caused by new engine regulations (China III), potentially impacting business in the first half of 2020.
• Potential negative effects on economic growth and business activities due to the spread of the coronavirus.

Mitigation Strategies

• Closely monitoring developments and making necessary decisions in the interests of employees, customers, and suppliers.
• Working towards rapid approval of new China III machines.
• Implementing preventive measures to mitigate the impact of the coronavirus.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Entering into long-term relationships with suppliers, tapping alternative suppliers worldwide.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• More stringent emission standards (China III).

Opportunities

• Development of lower-emission drive systems, including emission-free electric mobility.

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Rödl & Partner GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Light electric mining vehicles, rubber-tyred electric vehicles.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity
• Sustainable Procurement
• Product Quality
• Energy Efficiency
• Waste Management
• Anti-corruption
• Occupational Safety & Health Protection
• Recruitment and Retention of Talent
• Fair Pay, Collective Bargaining Agreements
• Stakeholder Engagement
• Work-Life Balance, Family-Friendly Employer
• Compliance
• Independent Supervisory Board

Environmental Achievements

• Reduced electricity consumption by 9.3% at the Hamm site.
• Reduced gas consumption by 5.9% at the Hamm site.
• Reduced water consumption to 677 m³ in 2021 from 758 m³ in 2020.
• Increased share of machines without direct exhaust emissions from 0% to 5% by electrification.
• Became the first European company to receive approval for China III machines.

Social Achievements

• Launched initiatives to improve employee well-being, including ergonomic workstations and flexible working hours.
• Maintained a low employee turnover rate (3.3% in 2021).
• Hired 28 new employees in 2021.
• Consistently engaged in further developments to continuously improve the safety of products.
• Operates B-BBEE-compliant in South Africa, contributing to economic prospects for previously disadvantaged groups.

Governance Achievements

• Established an anti-corruption training program.
• Implemented a Whistleblower system.
• Appointed an independent compliance officer.
• Maintained a 33% share of women on the Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic and geopolitical tensions.
• Shortage of semiconductors.
• Increased exchange rate risks due to the Ukraine crisis.
• Continued challenging market conditions.
• Risks associated with the war in Ukraine and sanctions on Russia.

Mitigation Strategies

• Initiated change processes to counteract the growing vulnerability of supply chains.
• Identified rail transport and air freight as helpful instruments to counter bottlenecks.
• Implemented a multiple-source strategy for procurement.
• Developed alternative sourcing strategies.
• Working to minimize negative currency effects and achieve better payment terms.

Supply Chain Management

Responsible Procurement

• Compliance with environmental standards (ATEX conformity, welding certificates, audits, self-questionnaires).
• Increasingly switching from global sourcing to local sourcing.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (electric vehicles).

Sustainable Products & Innovation

• Electric Monorail Transport System (EMTS)
• Battery-electric light vehicles, loaders (LHDs), medium-duty trucks
• DZK3500 engine (China III compliant)

Environmental Metrics

ESG Focus Areas

• Product and production responsibility
• Occupational health and safety
• Fair working conditions
• Climate change (electromobility)
• Environmental impact (energy, water, waste)
• Diversity and inclusion
• Supply chain management
• Anti-corruption

Environmental Achievements

• Reduced electricity consumption in Hamm by 4.5% (380,037 kWh to 362,937 kWh)
• Reduced gas consumption in Hamm by 36.2% (291,750 kWh to 186,039 kWh)
• Procured 100% renewable energy at Hamm location since January 1, 2023
• Developed a modular battery system for various vehicle types
• Successfully tested own battery for light electric vehicles (SCHARF LEV)
• Developed and delivered a specific transport solution for rail-bound passenger and emergency transport in tunnels (Snowy Mountain 2.0 project)

Social Achievements

• Implemented ergonomic workstations at Hamm headquarters
• Offered flexible working hours and mobile working options at Hamm
• Company suggestion scheme with 9 operational improvement proposals submitted
• 800 training hours provided to employees (100 days)
• Maintained employee turnover rate at Hamm site at 3.3%
• Complied with Broad-Based Black Economic Empowerment (B-BBEE) in South Africa

Governance Achievements

• Implemented a Group-wide enterprise resource planning (ERP) system
• Appointed an independent compliance officer
• Established a whistleblower system
• No reportable compliance violations occurred at German Group companies
• No litigation expenses incurred

Climate Goals & Targets

Environmental Challenges

• Challenging market environment due to Russia-Ukraine conflict and global uncertainty
• Supply chain disruptions
• Geopolitical tensions and energy shortages
• Stringent sustainability standards in mining markets
• Market acceptance of electrified machinery still low
• Approval modalities and certifications for electrified products may restrict use
• Potential pressure on earnings due to increased prices for energy, freight, and materials

Mitigation Strategies

• Commitment to three-pillar strategy (organic and inorganic growth, operational excellence)
• Implementation of new ERP system
• Focus on expanding business in mineral mining and tunneling
• Continuous review of market opportunities for acquisitions and strategic partnerships
• Focus on modular product range to meet specific customer needs
• Development and production of underground electric vehicles
• High stocks of materials and dual-sourcing strategy
• Long-term partnerships with suppliers and long-term master agreements
• Advance planning of equipment and spare parts delivery
• Bundling of transportation activities
• Continuous development and refinement of diesel engines and exhaust gas purification systems
• Development of concepts to respond to further tightening of legislation

Supply Chain Management

Responsible Procurement

• Compliance with safety and quality standards (ATEX conformity and welding certificates)
• Supplier company audits and questionnaires
• Shifting from global sourcing to local sourcing

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Electrification of product portfolio

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), AccountAbility standard AA1000

Certifications: ISO 9001, ISO 3834, EN 1090, ATEX Directive

Sustainable Products & Innovation

• SCHARF LEV
• Electric Monorail Transport System (EMTS)
• DZK3500 engine
• Automated transport systems (Smart Driving Functions)

Environmental Metrics

ESG Focus Areas

• Environmental impacts (greenhouse gas emissions, energy consumption, water consumption, waste generation)
• Occupational health and safety
• Social responsibility (respecting rights and needs of local communities)
• Diversity and inclusion
• Supply chain management (sustainable practices)

Environmental Achievements

• Reduced electricity consumption at Hamm headquarters to 342,411 kWh in 2023 from 362,937 kWh in 2022.
• Significantly reduced gas consumption at Hamm site from 186,039 kWh in 2022 to 298 kWh in 2023.
• Sourced 100% of electricity from renewable sources at Hamm site since January 1, 2023 (confirmed by RenewablePLUS certificate).
• Increased the proportion of energy-efficient LED lighting at Hamm site to 85% in 2023 from approximately 45% in 2022.
• Continued focus on electrification of rubber-tired vehicles and development of low-emission engines.

Social Achievements

• Implemented a company suggestion system to integrate employees into internal process structuring.
• Provided 750 hours of employee training in 2023 (100 days, 30.50% of employees).
• Maintained B-BBEE compliance in South Africa, promoting economic integration of previously disadvantaged citizens.

Governance Achievements

• Implemented a whistleblower system, further professionalized in 2023 with a dedicated online tool.
• Appointed an independent Compliance Officer (Dr. Philip Seel).

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions including uncertainties in the market environment, investment reticence of mine operators, strained supply chains, and rising costs for materials, energy, and freight.
• Decline in new systems business due to reluctance of mine operators to invest in modern mining technology.
• Postponement of sales revenues from project business to 2024.
• Impairment of goodwill due to delay in bringing electric commercial vehicles to market.
• Low acceptance of electrified mining machinery solutions compared to conventional diesel products.
• Authorization conditions and certification requirements inhibiting the use of electrified products.
• Economically precarious situation in South Africa.

Mitigation Strategies

• Targeted measures to optimize processes in development, production, and sales.
• Focus on making internal processes more efficient through efficient procurement management and operational excellence initiatives.
• Group-wide introduction of an ERP system (rollout at German locations to be completed in 2024).
• Focus on tunnel logistics and hard rock mining.
• Development of a modular battery system for different vehicle classes.
• Cultivating durable supplier relationships and qualifying alternative suppliers.
• Developing alternative product designs to improve pricing.

Supply Chain Management

Responsible Procurement

• Safety and quality standards maintained (ATEX conformity, welding certificates); audits by Quality Assurance department; supplier questionnaires; shift from global to local sourcing.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products; increased demand for metals used in renewable energy production.

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), AccountAbility standards, CSRD (Corporate Sustainability Reporting Directive)

Certifications: ISO 9001, ISO 3834, EN 1090, ATEX Directive

Sustainable Products & Innovation

• Electric Monorail Transport System (EMTS); battery-electric light transport vehicle (LEV); modular battery system; DZK3500 engine; liquid-cooled batteries.