thyssenkrupp AG
Climate Impact & Sustainability Data (2018-04 to 2019-03, 2019-04 to 2020-03)
Reporting Period: 2018-04 to 2019-03
Environmental Metrics
Total Carbon Emissions:~23 mnt CO2e Scope 1+2
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
Environmental Achievements
- ~100,000 t CO2e avoided in FY 2018/19 through efficiency gains
Social Achievements
- Not disclosed
Governance Achievements
- Management compensation aligned with financial performance targets, including sustainability factors
Climate Goals & Targets
Long-term Goals:
- Climate-neutrality until 2050
Medium-term Goals:
- -30% scope 1+2 emissions & -16% scope 3 emissions until 2030
Short-term Goals:
- Not disclosed
Environmental Challenges
- Economic and geopolitical uncertainties, limited visibility for cyclical materials and auto businesses
- EU carbon flat steel market with economic slowdown, increasing geopolitical tensions, overcapacities, trade imbalances, and increased iron ore prices
- Continued pricing pressure and material costs (tariffs) in the US for Elevator Technology
Mitigation Strategies
- Cost reduction and earning securing measures at all businesses
- Restructuring and reorganization in Europe and the Americas
- Performance programs to improve productivity and offset margin pressure
Supply Chain Management
Supplier Audits: 100 sustainability audits of suppliers p.a.
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 50001, ISO 14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Carbon2Chem
Awards & Recognition
- Not disclosed
Reporting Period: 2019-04 to 2020-03
Environmental Metrics
Total Energy Consumption:150 GWh/year (2019/20)
ESG Focus Areas
- Climate neutrality
- Efficiency and cost reduction
- Headcount reduction
Environmental Achievements
- Annual energy efficiency gains of 150 GWh in 2019/20
- 100% of relevant activities covered by ISO 50001 by 2019/20
- 100% of relevant activities covered by ISO 14001 by 2019/20
- -30% scope 1+2 emissions until 2030
- -16% scope 3 emissions until 2030
- Climate-neutrality until 2050
Social Achievements
- 15% share of women in leadership positions by 2019/20
- 2.0 accidents per million hours worked by 2020/21, improvement of at least 10% a year
- 100 supplier sustainability audits each year
Governance Achievements
- Board-level responsibility for sustainability strategy & targets
- Integrated reporting approach (EU CSR directive)
- Corresponds to TCFD framework
- Performance factors into board compensation
Climate Goals & Targets
Long-term Goals:
- Climate neutrality by 2050
Medium-term Goals:
- Achieve additional €600 mn p.a. in EBIT and BCF from Steel Europe Strategy 20-30
Short-term Goals:
- Reduce headcount by 3,000 FTE in total (2,000 in next 3 years)
Environmental Challenges
- Increased raw material costs
- Price pressure for steel products
- Softer demand (Covid-19)
- Oversupply, intensified by imports
- Increased personnel costs
- Organizational inefficiencies
- Downstream footprint with inefficiencies
- Pandemic-driven demand collapse
Mitigation Strategies
- Steel Strategy 20-30 (headcount reduction, process optimization, downstream network optimization)
- Restructuring programs
- M&A for best-owner solutions
- Focus on efficiency and costs
- Stringent cash control and NWC measures
- Portfolio streamlining
- Expansion of service offerings
- New (higher margin) products
Supply Chain Management
Supplier Audits: 100/year
Climate-Related Risks & Opportunities
Transition Risks
- Carbon Leakage in European steel industry
Opportunities
- Development of climate-neutral steel production
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 50001, ISO 14001
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Sustainable Products & Innovation
- tkH2Steel
- Alkaline water electrolysis for green hydrogen production
- Carbon2Chem technology