Climate Change Data

STIHL Holding AG & Co. KG

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:93,840 tCO2e/year (Scope 1 and 2, before offsetting)
Scope 1 Emissions:38,690 tCO2e/year
Scope 2 Emissions:55,150 tCO2e/year
Renewable Energy Share:48% (Germany, 2021)
Total Energy Consumption:514 GWh/year
Water Consumption:630,000 m3/year (Group-wide)
Waste Generated:56,200 tons/year

ESG Focus Areas

  • Ecosystems
  • Circularity
  • Care

Environmental Achievements

  • German locations climate-neutral since January 2021 (Scope 1 and 2 emissions offsetting)
  • International production companies set to be climate-neutral in 2022 (Scope 1 and 2)
  • International sales companies to achieve climate neutrality from 2023 (Scope 1 and 2)
  • CO2 emissions reduced by 6.8 percent due to switch to renewable electricity in Germany
  • Improved waste separation concept introduced at Waiblingen offices
  • Packaging for brushcutter mowing heads converted from plastic to cardboard

Social Achievements

  • New employment and site-guarantee agreement signed through the end of 2025
  • Partnership with Ru Chang (China) providing training and employment for people with disabilities
  • Support for Pró Florescer (Brazil) providing prevocational training for disadvantaged youth

Governance Achievements

  • Sustainability Officer appointed and sustainability steering group established
  • Sustainability strategy developed with internal and external stakeholder involvement
  • New STIHL code of conduct introduced in 2022

Climate Goals & Targets

Long-term Goals:
  • Long-term climate neutrality
Medium-term Goals:
  • Scope 1 and 2 climate neutrality at all sales companies from 2023
  • Developing derived sustainability targets for each STIHL company by 2023
  • Incorporating sustainability criteria into all key decision processes by 2023
  • Feasibility study for a product geared entirely to circularity by 2023
  • Developing a strategy for environmentally critical raw materials by 2024
  • Increasing energy efficiency by 40 percent compared to 2019 by 2030
Short-term Goals:
  • Scope 1 and 2 climate neutrality at all production companies in 2022
  • Recycling rate of over 85 percent for products by 2022
  • Defining reduction targets for Scope 3 emissions in 2022
  • Developing a biodiversity concept for specific customer groups in 2022
  • Defining a product carbon footprint (PCF) in 2022
  • Reviewing potential to further reduce accident rate per 1 million hours worked in 2022
  • Defining measures and targets for transparency and strengthening diversity and inclusion in the workforce in 2022

Environmental Challenges

  • Extreme weather events
  • Supply chain bottlenecks
  • Coronavirus pandemic
  • Materials shortages and supply bottlenecks (especially steel, electronics, plastics)
  • Climate change
  • IT security
Mitigation Strategies
  • Development of alternative sourcing strategies
  • Strengthening relationships with suppliers
  • Implementation of strict infection prevention and hygiene measures
  • Covid-19 vaccination campaign
  • Development of a strategy for environmentally critical raw materials by 2024
  • Action plan to reduce hazardous process chemicals by 2025
  • Three annual in-depth risk analyses for high-risk supply chains

Supply Chain Management

Responsible Procurement
  • Code of conduct for suppliers
  • International reporting system for monitoring and auditing suppliers
  • Sustainability criteria incorporated into supplier selection and onboarding
  • Collaboration with Responsible Minerals Initiative (RMI)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 45001, ISO 50001

UN Sustainable Development Goals

  • SDG 3 (Good health and well-being)
  • SDG 8 (Decent work and economic growth)
  • SDG 9 (Industry, innovation, and infrastructure)
  • SDG 12 (Responsible consumption and production)
  • SDG 13 (Climate action)
  • SDG 15 (Life on land)

The company's initiatives contribute to these goals through various actions detailed in the report.

Sustainable Products & Innovation

  • Battery-operated tools
  • STIHL MotoMix ECO fuel (reducing CO2 emissions)
  • STIHL Multioil Bioplus lubricant (90% renewable raw materials)

Awards & Recognition

  • Great Place to Work seal (STIHL Brazil)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:46,788 tCO2e/year (Scope 1 and 2, offset)
Scope 1 Emissions:29,215 tCO2e/year
Scope 2 Emissions:17,573 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:90%
Total Energy Consumption:423.8 GWh/year
Water Consumption:581,000 m3/year
Waste Generated:69,300 tons/year
Carbon Intensity:16.5 tCO2e/million euros in revenue (2023)

ESG Focus Areas

  • Ecosystems
  • Circularity
  • Care

Environmental Achievements

  • Scope 1 and 2 carbon neutrality at all production companies achieved in 2022 through carbon offsets and carbon capture.
  • Scope 1 and 2 carbon neutrality at all sales companies achieved in 2022 through carbon offsets and carbon capture.
  • Reduced foil thickness in spare parts packaging by 20%, saving 16 metric tons of plastic annually starting in 2024.
  • Converted 20% of mowing head packaging from plastic to cardboard by the end of 2023, with projected savings of 111 metric tons of plastic.
  • Eliminated the window on chain packaging, saving an additional 48 metric tons of plastic since early 2024.

Social Achievements

  • Launched "Programa Diversidade" in Brazil to foster diversity and inclusion among staff.
  • Launched "Women Network@STIHL" at the founding company to support women in sharing experiences and best practices.
  • Maintained low employee turnover (3.6% for non-production staff in 2023).

Governance Achievements

  • Joined the United Nations Global Compact in February 2023.
  • Developed a code of conduct for employees based on the principles of the United Nations’ International Labour Organization (ILO).
  • Established a whistleblower system, receiving 188 reports in 2023.

Climate Goals & Targets

Long-term Goals:
  • Long-term carbon neutrality in own business activities.
Medium-term Goals:
  • Reduce fossil fuel consumption by 40% compared to 2019 levels by 2030.
  • Increase share of sales from battery-operated tools to 35% by 2027 and 80% by 2035.
Short-term Goals:
  • Feasibility study for a fully circular product by 2024.
  • Develop a strategy for environmentally critical raw materials by 2024.
  • Action plan for avoiding hazardous process chemicals by 2025.

Environmental Challenges

  • Slower growth, inflation, and high energy prices impacting consumer spending.
  • Global uncertainties such as armed conflict and climate change.
  • Shortages of raw materials, components, and energy driving up procurement costs.
  • Difficulties in procuring adequate battery-operated tools for certain forestry tasks due to weight and battery life limitations.
Mitigation Strategies
  • Long-term contracts to mitigate the impact of the energy crisis.
  • Investing in innovative battery technology and aiming to increase the share of sales attributable to battery-operated tools to at least 35 percent by 2027, with a target of 80 percent by 2035.
  • Research on more efficient engines and fuels.
  • Development of MotoMix Eco bio-based special fuel, reducing CO2 emissions by 18% compared to conventional fuels.
  • Expanding the depth of production to strengthen resilience against supply chain uncertainties.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sustainability-oriented purchasing criteria (price, quality, logistics, sustainability).
  • Cloud-based platform for monitoring supplier conformity with sustainability standards.
  • Code of conduct for business partners.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes (e.g., California's near-ban on internal combustion engines).
Opportunities
  • Development of energy-efficient products and battery technology.
  • Use of biofuels and e-fuels.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (production companies and ZAMA locations), ISO 45001 (founding company, Brazil, China, ZAMA China)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 9 (Industry, Innovation, and Infrastructure)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)
  • SDG 15 (Life on Land)

STIHL's sustainability strategy and initiatives contribute to these SDGs through various programs and actions related to health and safety, employment, innovation, resource management, climate change mitigation, and biodiversity conservation.

Sustainable Products & Innovation

  • Battery-operated tools
  • Low-emission FSA 200 cordless clearing saw
  • MotoMix Eco special fuel

Awards & Recognition

  • Forbes' Best Medium-Sized Employers in America (STIHL Inc.)
  • Great Place to Work certification (Spain)
  • Top Employer in Brazil (STIHL Brazil)
  • Top Employer in China (STIHL China)
  • Greek Business Champions Award (STIHL Greece)