Climate Change Data

KLINGELNBERG AG

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2023-04 to 2024-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Renewable Energy Share:60% (in new assembly hall)

ESG Focus Areas

  • Climate efficiency
  • Environmental protection
  • Sustainability

Environmental Achievements

  • New assembly hall designed to meet climate-efficiency requirements according to KfW 55, reducing energy demand and CO2 emissions. Plant technology designed to generate 60% of thermal energy from renewable energies.

Social Achievements

  • Introduction of an in-house collective agreement and waiver of remuneration by the Executive Board and Board of Directors resulting in savings of around EUR 2.8 million in the last quarter of the 2021/22 financial year.
  • KLINGELNBERG among winners of the 2021 German Innovation Awards

Governance Achievements

  • Established a holistic risk management system in 2018 to identify, evaluate and manage business risk.

Climate Goals & Targets

Medium-term Goals:
  • EBIT margin above 6% in the 2022/23 financial year.
Short-term Goals:
  • Significant increase in sales in the 2022/23 financial year.

Environmental Challenges

  • Global economic challenges due to the Ukraine war and its impact on global value chains.
  • Material bottlenecks and raw material shortages.
  • Rising supplier prices and incipient inflation.
  • Supply chain disruptions
  • Flood disaster at the Hückeswagen site in July 2021 causing significant damage and business interruption.
Mitigation Strategies
  • Streamlining site operations, developing new business areas and markets, and laying the foundations for increased efficiency and clout.
  • Flexibility and agility to weather crises.
  • Flood-related insurance payments of EUR 15.8 million and a receivable from the Federal State of Nordrhein-Westfalen for EUR 20.0 million.
  • Almost complete elimination of flood-related production constraints.
  • Bridge financing from Credit Suisse in the amount of EUR 20.0 million (half guaranteed by the Klingelnberg family).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
Opportunities
  • Participation in expanding global wind energy market.

Reporting Standards

Frameworks Used: Swiss GAAP FER

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers AG

Sustainable Products & Innovation

  • New Precision Measuring Center P 152
  • HÖFLER Cylindrical Gear Roll Testing Machine R 300

Awards & Recognition

  • 2021 German Innovation Awards

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:7871 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:3015 tCO2e/year
Scope 2 Emissions:4856 tCO2e/year
Total Energy Consumption:23564 MWh/year
Carbon Intensity:25.7 tCO2e / EUR million TOP

ESG Focus Areas

  • Environmental matters
  • Social issues
  • Employee-related issues
  • Respect for human rights
  • Technology and innovation

Environmental Achievements

  • Slight decrease in energy consumption (8.3%) compared to the previous financial year.
  • Slight decrease in Scope 1 and 2 GHG emissions (5.8%) compared to the previous financial year.

Social Achievements

  • Zero reported incidents of discrimination, including harassment, in the last two financial years.
  • High number of marketed retrofits and upgrades (200 in 2023/24).

Governance Achievements

  • First Sustainability Report published.
  • Implementation of a holistic risk management system.
  • New Code of Conduct covering ESG topics.

Climate Goals & Targets

Long-term Goals:
  • Reduce its corporate carbon footprint and contribute to the achievement of Switzerland’s climate target (Net Zero by 2050).
  • Zero confirmed cases of human rights violations within both its supply chain and its own operations.
  • Continuous increase in the rate of confirmed Supplier Code of Conduct agreements.
Medium-term Goals:
  • Increase the average number of training hours per employee.
  • Significantly increase the number of employee appraisals.
Short-term Goals:
  • Implement a certified energy management system according to ISO 50001 at its largest production sites by the end of the 2024/25 financial year.
  • Increase the consumption of renewable electricity year on year.
  • Implement a talent program by the end of the 2024/25 financial year.

Environmental Challenges

  • Delayed delivery of customer machines due to flooding in 2021.
  • Weakening figures for new business in Europe.
  • Temporarily weak global growth momentum.
  • High interest rates and energy prices weighing on investment readiness.
  • Geopolitical risks and uncertainties.
Mitigation Strategies
  • Diversified customer portfolio offsetting decline in demand for bevel gear machines.
  • Investment in research and development (EUR 26.2 million).
  • Development of energy efficiency programs and expanding the use of renewable energies.
  • Strengthening the circular economy by recycling and reusing materials.
  • Strict quality controls and safety tests for products; intensify customer communication and training on correct product use.

Supply Chain Management

Responsible Procurement
  • Code of Conduct for Suppliers
  • Policy Statement on Respect for Human Rights and Environmental Protection

Climate-Related Risks & Opportunities

Physical Risks
  • Production and supply chain disruptions
Transition Risks
  • Stricter environmental regulations
Opportunities
  • New market potential
  • Development of low-carbon products and services

Reporting Standards

Frameworks Used: GRI Standards, Swiss Code of Obligations (CO) Art. 964b

Certifications: ISO 14001 (KLINGELNBERG GmbH), ISO 9001, VDA 6, part 4

Sustainable Products & Innovation

  • Machines for wind power and e-mobility sectors