KHD Humboldt Wedag International AG
Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Environmental Matters
- Employee Matters
- Social Matters
- Respect for Human Rights
- Anti-Corruption and Anti-Bribery Matters
- Sustainability Matters in the Supply Chain
Environmental Achievements
- Developed PYROROTOR®, a technology enabling the use of very coarse and poorly prepared secondary fuels, reducing emissions.
- Developed PYRO REDOX® gasification reactor in 2018, reducing nitrogen oxide emissions.
- Roller press technology contributes to reduced CO2 emissions through the use of slag and other clinker substitutes and reduced water consumption.
Social Achievements
- Donated €106 thousand (2% of average net profit) to the Prime Minister National Relief Fund in India, supporting disaster relief and medical treatments.
Governance Achievements
- Implemented a Code of Conduct for all employees and a Code of Ethics for top management.
- Established a whistleblower policy to report violations of the Code of Conduct.
- Annual confirmation of compliance with the Code of Conduct by all employees in senior management and high-risk departments.
Climate Goals & Targets
Environmental Challenges
- Indirect risks associated with the inability to develop and sell energy-efficient products.
- Maintaining compliance with human rights in countries with less robust legal protections.
Mitigation Strategies
- Marketing products based on both price and environmental advantages.
- Code of Conduct ensures compliance with human rights in all KHD companies.
Supply Chain Management
Responsible Procurement
- Suppliers are audited by internal specialists before initial purchase orders and regularly thereafter. Unacceptable working conditions, environmental disregard, or child/forced labor lead to disqualification.
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products
Sustainable Products & Innovation
- PYROROTOR®, PYRO REDOX® gasification reactor, roller press technology
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Environmental Matters
- Employee Matters
- Social Matters
- Respect for Human Rights
- Anti-Corruption and Anti-Bribery Matters
- Sustainability Matters in the Supply Chain
Environmental Achievements
- Developed PYROROTOR® for using coarse secondary fuels in cement manufacturing, reducing emissions.
- Developed PYRO REDOX® gasification reactor to reduce nitrogen oxide emissions in cement plants.
- Roller press technology contributes to reduced CO2 emissions through efficient slag grinding and lower water consumption.
Social Achievements
- Donated €69,000 to the Prime Minister National Relief Fund in India (supporting disaster relief and medical treatments).
Governance Achievements
- Implemented a Code of Conduct and a Code of Ethics for top management, promoting ethical conduct and proactive reporting of violations.
- Implemented a whistleblower policy to enable anonymous reporting of misconduct.
Climate Goals & Targets
Environmental Challenges
- Indirect risks associated with the inability to develop and sell energy-efficient products.
- Maintaining compliance with human rights in regions with less robust legal protection.
Mitigation Strategies
- Marketing products based on both price and environmental advantages.
- Ensuring compliance with human rights through the Code of Conduct and supplier audits.
Supply Chain Management
Responsible Procurement
- Suppliers are audited before initial purchase orders and regularly thereafter. Unacceptable working conditions or environmental disregard lead to disqualification.
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- PYROROTOR®, PYRO REDOX®
- Roller press technology
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental Matters
- Employee Matters
- Social Matters
- Respect for Human Rights
- Anti-Corruption and Anti-Bribery Matters
- Sustainability Matters in the Supply Chain
Environmental Achievements
- Developed PYRO REDOX® gasification reactor in 2018, reducing nitrogen oxide emissions in cement plants.
- Roller press technology offers energy-efficient grinding and uses less process water compared to other technologies.
- PYROCLON® calciner allows for calcination of alternative substances like clay, reducing the CO2 footprint of cements.
Social Achievements
- Supported the “Prime Minister National Relief Fund” in India with €86,000 (previous year: €69,000) in donations.
- Implemented flexible work time arrangements and work time accounts.
Governance Achievements
- Implemented a Code of Conduct and a Code of Ethics for top management.
- Established a whistleblower policy.
- Annual confirmation of compliance with the Code of Conduct from all employees in senior management and high-risk departments.
Climate Goals & Targets
Environmental Challenges
- Indirect risks associated with the business activities and products of KHD if the company is unable to develop and sell energy-efficient and environmentally conscious products.
- Limited possibilities for energy savings in leased office buildings.
Mitigation Strategies
- Marketing products based on their environmental advantages.
- Systematic and regular further development of products with a focus on energy and emissions efficiency.
- Risk mitigation strategies for corruption and bribery in individual projects.
Supply Chain Management
Supplier Audits: Regular and incident-related supplier assessments.
Responsible Procurement
- Suppliers are audited by internal specialists before initial purchase orders.
- Suppliers are disqualified if unacceptable working conditions, environmental disregard, or child/forced labor are found.
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- PYRO REDOX® gasification reactor
- Roller press technology
- PYROCLON® calciner
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Environmental Matters
- Employee Matters
- Social Matters
- Respect for Human Rights
- Anti-Corruption and Anti-Bribery Matters
- Sustainability Matters in the Supply Chain
Environmental Achievements
- Developed energy-efficient grinding technology (roller press), contributing to reduced energy consumption and water usage in cement production.
- Introduced PYROCLON® calciner for calcining alternative substances like clay, reducing the CO2 footprint of cement.
- Developed PYROREDOX® gasification reactor to significantly reduce nitrogen oxide emissions in cement plants.
- Increased R&D spending to €4.1 million (from €2.9 million) focusing on energy and emissions efficiency and resource preservation.
Social Achievements
- Supported earthquake victims in Turkey and flood victims in the Ahr valley.
- Donated €101,000 (from €86,000) to the “Prime Minister National Relief Fund” in India.
- Increased external spending on training and employee development to €147,000 (from €95,000).
Governance Achievements
- Implemented a Code of Conduct and a Code of Ethics for top management.
- Established a whistleblowing system to report violations or questionable actions.
- Fully implemented the legal requirements of the Whistleblower Protection Act for Humboldt Wedag GmbH.
Climate Goals & Targets
Environmental Challenges
- Indirect risks associated with the business activities and products of KHD if the company is unable to develop and sell environmentally beneficial products.
- Potential non-compliance with standards by business partners in certain countries.
Mitigation Strategies
- Marketing products based on their environmental advantages.
- Established processes and systems to identify potential risks and violations in the supply chain, including supplier audits and certifications.
Supply Chain Management
Supplier Audits: Regular and event-driven follow-up certifications; potential new suppliers are evaluated before the first order.
Responsible Procurement
- High quality and technical requirements placed on suppliers; evaluation by internal specialists before the first order; disqualification if unacceptable working conditions, environmental disregard, or child/forced labor are found.
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products
Sustainable Products & Innovation
- Roller press, PYROCLON® calciner, PYROREDOX® gasification reactor, KHD ProMax®