Climate Change Data

KION GROUP AG

Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:247,184 t CO2e/year
Scope 1 Emissions:121,597 t CO2e/year
Scope 2 Emissions:92,480 t CO2e/year
Scope 3 Emissions:33,108 t CO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,397,983 GJ/year
Water Consumption:541 MI/year
Waste Generated:68,498 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate protection
  • Occupational health and safety
  • Energy efficiency
  • Product responsibility
  • Diversity and equal opportunities
  • Supply chain sustainability
  • Good governance

Environmental Achievements

  • Reduced greenhouse gas emissions (Scope 1, 2, 3) by 0.6% compared to 2018 (247,184 t CO2e vs 248,747 t CO2e). Market-based reduction of -6.0%
  • Reduced total energy consumption by 0.6% compared to 2018 (2,397,983 GJ vs 2,412,433 GJ)
  • Increased renewable energy share (indirectly through electricity sourcing) in Germany and Czech Republic
  • New plant in Pune, India equipped with a photovoltaic system

Social Achievements

  • Reduced workplace accidents resulting in at least one working day’s absence by 16.9%
  • Reduced Lost Time Injury Frequency Rate (LTIFR) to 8.7 (2018: 10.8)
  • Implemented various health protection measures across operating units

Governance Achievements

  • Achieved Prime Status (C+) in the sustainability rating of ISS ESG
  • Inclusion in the FTSE4Good Index Series
  • Continued development and implementation of the KION Group Code of Compliance
  • No confirmed cases of corruption or bribery

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Stabilize LTIFR at a value below eight by 2021
  • Achieve 10% and 30% women in first and second management levels below the Executive Board by 2021
Short-term Goals:
  • Reduce energy-related emissions (Scope 1, 2, and to an extent 3) by 30 percent by 2027 compared to 2017

Environmental Challenges

  • Managing global and increasingly complex supply chains
  • Finding answers to demographic change and competition for qualified young talent
  • Challenges of digital transformation
  • Substituting chemical substances harmful to humans or the environment
  • Limited supply of fuel cells with required power output
Mitigation Strategies
  • Use of EcoVadis platform to evaluate supplier sustainability performance
  • HR strategy focused on employing sufficient highly qualified and motivated employees
  • Ongoing activities aimed at replacing hazardous substances
  • Establishment of joint venture KION Battery Systems GmbH to expand lithium-ion products and production capacities
  • Continuous work on reducing environmental impact of trucks with combustion engines

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • KION Group Principles of Supplier Conduct
  • EcoVadis supplier assessments

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, German implementation of the EU Directive on non-financial reporting requirements (CSR-RUG)

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Electrically powered trucks
  • Lithium-ion batteries
  • Fuel cells
  • Energy-recovery systems in Dematic storage systems

Awards & Recognition

  • Not disclosed

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:219,128 t CO2e/year (location-based), 172,422 t CO2e/year (market-based)
Scope 1 Emissions:106,641 t CO2e/year
Scope 2 Emissions:83,363 t CO2e/year
Scope 3 Emissions:29,125 t CO2e/year
Renewable Energy Share:15.7% of total energy consumption
Total Energy Consumption:2,140,723 GJ/year
Water Consumption:437 million liters/year
Waste Generated:65,695 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Occupational health and safety
  • Employer attractiveness
  • Product climate change mitigation
  • Product efficiency
  • Enhancing customers’ safety
  • Climate change mitigation
  • Environmentally and socially responsible supply chain
  • Sustainable Business Development

Environmental Achievements

  • Reduced total energy consumption by 10.9%
  • Reduced greenhouse gas emissions (Scope 1, 2, 3) by 11.4% (location-based) and 24.4% (market-based)
  • Reduced total water consumption by 19.3%
  • Reduced total waste produced by 15.1%

Social Achievements

  • Reduced Lost Time Injury Frequency Rate to 7.8 (from 8.7 in 2019)
  • Illness Rate of 2.9% (slightly up from 2.8% in 2019)
  • Increased percentage of female employees to 17.2% (from 16.7% in 2019)
  • 65% of suppliers reviewed improved their EcoVadis rating

Governance Achievements

  • Revised sustainability strategy with quantitative targets and KPIs
  • Incorporated sustainability criteria into 20% of variable Executive Board and management remuneration
  • Implemented a new IT-based register for recording gifts and invitations
  • Revised the KION Group’s Donations and Sponsorship Policy

Climate Goals & Targets

Long-term Goals:
  • 30% absolute reduction of total energy related GHG emissions by 2027
  • EcoVadis rating “Gold“ for all OUs and KION Group by 2027
  • S&P Global Corporate Sustainability Assessment (CSA) score ≥ 70 points by 2027
Medium-term Goals:
  • 100% certification rate ISO 14001 by 2024
  • Minimum sustainability requirements for supply chain by 2023
  • Minimum EcoVadis score requirement mandatory for all suppliers by 2027
Short-term Goals:
  • Reduce accident frequency by 5% p.a.
  • 100% certification rate ISO 45001 by 2024
  • EcoVadis or equivalent available for 25% top spend of strategic suppliers by 2022

Environmental Challenges

  • Finding answers to demographic change and competition for qualified young talent
  • Challenges of digital transformation
  • Harmonising systems and processes for sustainability criteria across numerous product groups and different levels of vertical integration
  • Risks regarding component availability due to single-sourcing approach for many customer-specific components
Mitigation Strategies
  • HR strategy with an integrated, Group-wide approach and uniform standards
  • Group-wide rollout of a standardised IT system for HR
  • EcoVadis supplier management tool to evaluate sustainability performance of key suppliers
  • Risk and capacity management system to work with suppliers to examine risks and develop concepts to safeguard capacity

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • KION Group Code of Compliance
  • General Terms and Conditions of Purchase
  • KION Group Principles of Supplier Conduct
  • EcoVadis supplier assessments

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB (Sustainability Accounting Standards Board) reporting requirements

Certifications: ISO 14001, ISO 45001

Third-party Assurance: An auditing firm commissioned by the KION Group Supervisory Board

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Electric forklift trucks and warehouse trucks
  • Lithium-ion batteries
  • Fuel cells
  • Energy-recovery systems in Dematic storage and retrieval systems

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:180,654 t CO₂e (market-based)
Scope 1 Emissions:110,291 t CO₂e
Scope 2 Emissions:90,689 t CO₂e
Scope 3 Emissions:31,832 t CO₂e
Renewable Energy Share:19.3% of total energy consumption
Total Energy Consumption:2,271,351 GJ
Water Consumption:584 million liters
Waste Generated:76,307 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change mitigation
  • Occupational health and safety
  • Product safety
  • Supplier sustainability
  • Diversity and equal opportunities

Environmental Achievements

  • Reduced total energy-related GHG emissions by 28.6% compared to 2017 (towards a 30% target by 2027)
  • Increased ISO 14001 certification rate to 72%
  • Reduced greenhouse gas emissions (Scope 1, 2, 3.3) by 4.2% compared to 2020

Social Achievements

  • Achieved an engagement score of 74 and a participation rate of 64% in the first global employee survey
  • Zero cases of non-compliance with KION Group minimum employment standards
  • Increased ISO 45001 certification rate to 69%

Governance Achievements

  • Established a binding governance structure for sustainability across the Group
  • Completed an external audit of the compliance management system in the anti-corruption section in accordance with IDW PS 980, based on ISO 19600
  • Linked approximately 20% of variable short-term and long-term Executive Board and management remuneration to sustainability criteria

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions (Scope 1, 2, 3) by 2050
Medium-term Goals:
  • Reduce total energy-related GHG emissions by 30% compared to 2017 by 2027
  • Increase the share of electric-powered vehicles sold annually to 90% by 2027 (ITS segment)
  • 100% of Dematic’s new product/solution portfolio will be measured by sustainability-related targets by 2027 (SCS segment)
Short-term Goals:
  • Reduce accident frequency rate by 5% per annum
  • Increase employee satisfaction to an engagement score of at least 75 and a participation rate of at least 68% by 2023
  • Achieve 100% ISO 45001 and ISO 14001 certification rate by 2024

Environmental Challenges

  • Global supply chain disruptions due to material shortages (e.g., electronic components)
  • Limited availability of fuel cells and high cost of hydrogen infrastructure hindering wider rollout of fuel cell technology
  • Meeting increasing global requirements for sustainability criteria in raw materials and products
Mitigation Strategies
  • Developed tools to track missing electronic components and analyze procurement risks
  • Working on solutions for smart connectivity and control of chargers to manage electricity efficiently
  • Implementing EcoVadis assessments for key suppliers to evaluate sustainability performance and manage risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • KION Group Code of Compliance
  • Principles of Supplier Conduct
  • EcoVadis assessments
  • Integrity and trade control checks

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB (Sustainability Accounting Standards Board) reporting requirements in accordance with the “Industrial Machinery & Goods” sector standard (version 2018-10)

Certifications: ISO 14001, ISO 45001

Third-party Assurance: An auditing firm commissioned by the KION GROUP AG Supervisory Board conducted an external limited-assurance audit.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Electric forklift models (Linde X20–X35)
  • STILL LXT and LXW tow tractor and transporter series
  • Dematic Multishuttle 2E with standby circuit
  • RapidStore UL-1200 series storage and retrieval system

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:219,836 tCO2e
Scope 1 Emissions:106,154 tCO2e
Scope 2 Emissions:77,132 tCO2e
Scope 3 Emissions:18,352 kt CO2e
Renewable Energy Share:19.2%
Total Energy Consumption:2,212,046 GJ
Water Consumption:553 million liters
Waste Generated:101,934 tons

ESG Focus Areas

  • Occupational health and safety
  • Talent
  • Product and solution safety
  • Product and solution sustainability
  • Climate and energy
  • Circularity
  • Supply chain
  • Sustainable governance

Environmental Achievements

  • Reduced GHG emissions (Scope 1, 2, 3.3) by 7.0% compared to 2021
  • Achieved 30% absolute reduction of energy-related GHG emissions of own operations compared to 2017 (target year 2027)
  • 81% ISO 14001 certification rate

Social Achievements

  • Reduced accident frequency rate to 5.8 (2021: 7.7)
  • Employee engagement score of 74 (2021: 74)
  • Employee survey participation rate of 77% (2021: 64%)
  • No cases of non-compliance with KION Group minimum employment standards

Governance Achievements

  • Achieved EcoVadis Gold rating
  • S&P Global Corporate Sustainability Assessment (CSA) score of 62 (2021: 57)
  • Improved CDP Climate Change score to leadership level A-

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions (Scope 1, 2, 3) by 2050
Medium-term Goals:
  • 100% renewable electricity in own operations (target date not specified)
  • EcoVadis “gold” rating for all OUs and the KION Group by 2027
  • S&P Global Corporate Sustainability Assessment (CSA) score ≥ 70 points by 2027
Short-term Goals:
  • Scope 1+2 GHG emissions reduction by 4.2% per year, Scope 3 by 2.5% per year by 2030

Environmental Challenges

  • Supply chain disruptions due to geopolitical factors and the COVID-19 pandemic
  • Rising material and energy costs
  • Increasing customer expectations regarding sustainability
Mitigation Strategies
  • Implemented a three-level ESG evaluation program using EcoVadis and IntegrityNext platforms
  • Developed new strategic targets aligned with SBTi criteria for GHG emission reduction
  • Expanded the range of sustainable products and solutions
  • Improved data quality and methodology for climate action

Supply Chain Management

Responsible Procurement
  • KION Group Code of Compliance
  • Principles of Supplier Conduct
  • Three-level ESG evaluation program
  • EcoVadis and IntegrityNext platforms
  • Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

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

Reporting Standards

Frameworks Used: GRI Standards, SASB (Sustainability Accounting Standards Board), TCFD (Task Force on Climate-related Financial Disclosures)

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 50001 (at 14% of Group locations)

Sustainable Products & Innovation

  • Electric forklift trucks and warehouse trucks
  • Lithium-ion batteries
  • Fuel cell systems
  • Hydrogen refueling stations

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:14,940 kt CO2e
Scope 1 Emissions:111 kt CO2e
Scope 2 Emissions:35 kt CO2e (market-based)
Scope 3 Emissions:14,794 kt CO2e
Renewable Energy Share:20.3%
Total Energy Consumption:2,296,953 GJ
Water Consumption:596 million liters
Waste Generated:75,617 tons

ESG Focus Areas

  • Climate change
  • Sustainable supply chain
  • Circular products and business model
  • Occupational health and safety
  • Talent
  • Product and solution safety
  • Sustainable governance

Environmental Achievements

  • Reduced greenhouse gas emissions (Scope 3) by 18.2% compared to 2022
  • Reduced waste produced by 25.3% compared to 2022
  • Increased share of renewable energy use in own operations to 20.3% from 18.9% in 2022
  • Increased ISO 14001 certification rate to 90% from 81% in 2022
  • Closed the recycling loop for lithium-ion batteries through a strategic partnership with Li-Cycle Holding Corp.
  • Started recycling up to 5,000 tons of used battery cells by 2030
  • Developed a 24-volt fuel cell system for warehouse trucks and entered into in-house production
  • Started own production of hydrogen in Aschaffenburg factory using renewable energy

Social Achievements

  • Reduced accident frequency rate to 5.2 from 5.9 in 2022
  • Increased ISO 45001 certification rate to 89% from 80% in 2022
  • Maintained employee engagement score at 74 points, exceeding participation rate target of 80%
  • No cases of non-compliance with KION Group minimum employment standards
  • Implemented group-wide Diversity & Inclusion Awareness Month
  • Signed the Charta der Vielfalt (Diversity Charter)

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero greenhouse gas emissions along its value chain (Scope 1, 2, and 3) by 2050
Medium-term Goals:
  • Increase employee satisfaction to an engagement score of at least 75 and a participation rate of at least 80% by 2026
  • Achieve near-term GHG emission reduction targets by 2030 (Scope 1+2 by 4.2% per year, Scope 3 by 2.5% per year)
  • 100% EcoVadis or alternative rating for strategic and high-risk suppliers by 2023; 100% for direct suppliers by 2025
Short-term Goals:
  • Reduce accident frequency rate by 5% per annum
  • 100% ISO 45001 certification rate by 2024
  • 100% ISO 14001 certification rate by 2024

Environmental Challenges

  • Supply chain disruptions
  • Noise pollution in SCS segment
  • Climate-related physical risks
  • Transitional climate risks (market, technology, regulation, legal, reputation)
  • Potential labor and human rights violations within the supply chain
  • Use of PFAS
Mitigation Strategies
  • ESG supplier risk management process (including EcoVadis and IntegrityNext)
  • Rapid plant assessment audit procedure
  • Supplier Capacity Management team
  • Global Supplier Risk Management team (using Everstream Analytics)
  • Development of alternative sourcing strategies
  • Offering quieter solutions in SCS segment
  • Continuous assessment of climate risks and opportunities
  • Implementation of mitigation plans for identified risks
  • Continuous monitoring of scientific and regulatory developments regarding PFAS

Supply Chain Management

Supplier Audits: 73% of high-risk suppliers covered by ESG performance assessment in 2023

Responsible Procurement
  • KION Group Code of Compliance (KGCC)
  • Principles of Supplier Conduct
  • ESG supplier risk management process
  • IntegrityNext and EcoVadis platforms
  • Conflict Minerals Standard

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Market shifts
  • Technological changes
  • Regulatory changes
Opportunities
  • Development of low-emission products and services
  • Deployment of new technologies

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

  • Electric trucks with lithium-ion batteries
  • Fuel cell systems for warehouse trucks
  • Hydrogen production using renewable energy