DEUTZ AG

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:20,057 tCO2e

Scope 1 Emissions:13,590 tCO2e

Scope 2 Emissions:6,467 tCO2e

Total Energy Consumption:158,965 MWh

Waste Generated:22,427 tons

ESG Focus Areas

Environmental matters
Treatment of employees
Social responsibility
Respect for human rights
Measures to combat corruption and bribery
Corporate governance and compliance
Product stewardship

Environmental Achievements

CO2 emissions from production sites fell by around 55 percent in 2021 compared to 2020 despite a significant increase in production volume; CO2 emissions per manufactured engine saw an even greater drop of around 69 percent.
Reduced waste for disposal by 20% compared to 2019.
All DEUTZ AG’s German production sites purchased only green electricity since January 1, 2021.

Social Achievements

3,208 (99.1 percent) of all administrative employees completed compliance training.
Launched an organization-wide efficiency program called ‘Transform for Growth’ to maintain long-term competitiveness.
Established an innovation platform for employees to work together on enhancing the drive and service portfolio.

Governance Achievements

Established a groupwide compliance organization to ensure that the Company and its employees act in accordance with prescribed rules and regulations.
Implemented an IT-based business partner compliance tool to respond to matters such as suspected money laundering, anti-competitive practices, corruption, or bribery.
Executive compensation linked to ESG: Yes (Sustainability target included in Board of Management remuneration system).

Climate Goals & Targets

Medium-term Goals:

Increase the proportion of consolidated revenue generated by the Green segment to between 5 and 10 percent by 2023/2024.
Roll out business partner compliance checks to 90% of existing suppliers by 2023.

Short-term Goals:

Increase proportion of women in workforce to >10%, women in management to >20% by 2023.
Maintain employee engagement and enablement levels (78% and 69%) by 2023.
Maintain staff turnover rate within 5-10% by 2023.
Improve RIR to 7 by 2023.
Reduce CO2 emissions by 20% compared to 2017 by 2023 (for production sites and per manufactured engine).
Reduce waste for disposal by 10% compared to 2019 by 2023.
Reduce nitrogen oxide and particulate emissions by 3% compared to 2019 by 2023.

Environmental Challenges

Coronavirus pandemic impacted operations and training.
Supply chain disruptions (implicitly mentioned due to global events).

Mitigation Strategies

Established a coronavirus crisis management team.
Implemented various coronavirus-related health and safety measures (social distancing, face masks, work from home, testing centers, vaccination centers).
Adjusted targets for supplier audits due to the pandemic.

Supply Chain Management

Supplier Audits: 16 existing suppliers and 83% of new suppliers audited in 2021.

Responsible Procurement

Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

Development of energy-efficient products and carbon-neutral drive solutions

Reporting Standards

Frameworks Used: German Sustainability Code

Certifications: ISO 14001, ISO 9001, ISO 50001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers GmbH

UN Sustainable Development Goals

SDG 3
SDG 5
SDG 7
SDG 8
SDG 9
SDG 12
SDG 13
SDG 16

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

E-DEUTZ products (electric and hybrid drive systems)
Hydrogen engine (TCG 7.8 H2)
Mobile charging station (Powertree)

Awards & Recognition

Cologne Chamber of Industry and Commerce recognized DEUTZ’s training center for its outstanding achievements in vocational training.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:13,876 tCO2e/year (Scope 1 and 2)

Scope 1 Emissions:12,680 tCO2e/year

Scope 2 Emissions:1,196 tCO2e/year

Total Energy Consumption:146,992 MWh/year

Waste Generated:20,949 tons/year

Carbon Intensity:70.4 kg CO2e per engine (2023)