Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Resource efficiency
• Product responsibility
• Energy-efficient products
• Diversity
• Social responsibility
• Respecting human rights
• Occupational safety and health
• Professional training and development
• Compliance
• Sustainable supply chains

Environmental Achievements

• Increased the share of renewable energy in electricity consumption from 36.7% to 45.7% in the Group.
• KSB SE & Co. KGaA reduced its CO2 emissions by 1,537 tonnes despite increased energy consumption.
• Conducted life cycle assessments for 24% of newly developed products.
• Reduced CO2 emissions at production sites to 13.6% (reference year: 2018).

Social Achievements

• Launched online training for buyers and employees on human rights issues in the supply chain (273 employees participated).
• Participated in 26 social projects and 84 charitable initiatives worldwide.
• Increased the number of training hours per employee to 15 hours/year.

Governance Achievements

• 478 employees successfully completed compliance training e-learning modules.
• Implemented a global matrix of requirements to ensure all personnel with customer or supplier contact are familiarized with anti-trust/cartel law and anti-corruption policies.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to increased manufacturing activity.
• Decreased CO2 savings attributable to KSB water pumps with variable speed drives due to changes in the European electricity mix.
• Challenges in 2021 due to the consequences of the COVID-19 pandemic (not material risks).

Mitigation Strategies

• Regular energy audits at major European locations to reduce energy consumption and CO2 emissions.
• Energy-efficient refurbishment of buildings and foundries.
• Implementation of operational protective protocols at all locations and remote working arrangements to reduce the risk of COVID-19 infection.
• COVID-19 vaccination campaigns at the three largest German production locations.

Supply Chain Management

Supplier Audits: Approx. 56% of key global suppliers assessed in 2021

Responsible Procurement

• Supplier declarations of compliance with KSB’s Code of Conduct.
• Questionnaires to assess human rights risks at suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, EU Taxonomy Regulation

Certifications: ISO 14001, ISO 9001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers GmbH (limited assurance)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 9
• Goal 12
• Goal 13

KSB’s material sustainability issues relate to the goals addressing poverty, hunger, health and well-being, quality education, gender equality, clean water and sanitation, decent work conditions and economic growth, sustainable consumption and production, and climate action.

Sustainable Products & Innovation

• Energy-efficient water pumps with variable speed drives

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Resource efficiency
• Energy-efficient products
• Diversity
• Social responsibility
• Respecting human rights
• Occupational health and safety
• Professional training and development
• Compliance
• Sustainable supply chains

Environmental Achievements

• Reduced CO2 emissions by more than 20% compared with 2018 (KSB SE & Co. KGaA: 79.9% renewable energy share in power consumption)
• Increased share of renewable energy in electricity consumption from 45.7% to 50.4% in the Group (KSB SE & Co. KGaA: 79.9%)
• Estimated savings of more than 436,000 tonnes of CO2 in 2022 (compared with the 2022 CO2 equivalent) or more than 720,000 tonnes (compared with the 2018 CO2 equivalent) thanks to variable speed drives in water pumps
• Eco-balance rated for over half of newly developed products

Social Achievements

• Launched a global women’s network to promote gender diversity
• Increased proportion of women in management positions to 15% (KSB SE & Co. KGaA: 10%)
• Increased number of training hours per employee to 17 hours (KSB SE & Co. KGaA: 13 hours)
• Employee engagement score increased to 65% (2019: 57%)
• Participated in 36 social projects and 53 charitable initiatives worldwide

Governance Achievements

• 3,062 employees completed compliance training e-learning modules
• Revised KSB Code of Conduct to meet requirements of the Lieferkettensorgfaltspflichtengesetz (German Supply Chain Due Diligence Act)
• Implemented a global matrix of requirements to ensure personnel with customer or supplier contact are familiarized with anti-trust/cartel law and anti-corruption policies

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and the war in Ukraine
• Partial fulfillment of substantial contribution criteria for some taxonomy-eligible economic activities due to limitations in demonstrating compliance with specific CO2 emissions
• Inability to fully cover requirements regarding life cycle and scenario analysis of the EU Taxonomy Regulation and provide downstream documentation for compliance with minimum safeguards by external suppliers
• Increased energy costs due to the war in Ukraine and associated gas shortage

Mitigation Strategies

• Formed a cross-functional task force to address energy saving measures
• Launched an Ideas Management campaign for energy saving suggestions
• Trained energy officers at German locations
• Increased use of climate-friendly means of transport
• Regular energy audits at major European locations
• Construction of a new heating centre at Frankenthal location to increase renewable heat from biomass
• Replacement of lighting systems with LED equipment and renewal of less energy-efficient machinery and systems

Supply Chain Management

Supplier Audits: Approx. 57% of key global suppliers assessed by the end of 2022

Responsible Procurement

• Compliance with KSB’s Code of Conduct, which corresponds to the human rights standards defined in the UN Global Compact, is an integral part of business conditions and contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, EU Taxonomy Regulation

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers GmbH

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 9
• Goal 12
• Goal 13

KSB’s material sustainability issues relate to the goals addressing poverty (1), hunger (2), health and well-being (3), quality education (4), gender equality (5), clean water and sanitation (6), decent work conditions and economic growth (8), sustainable consumption and production (12) and climate action (13).

Sustainable Products & Innovation

• Fully integrated in-line water pump for building services

Environmental Metrics

ESG Focus Areas

• Water stewardship
• Climate change
• Resource efficiency
• Employee well-being
• Social responsibility
• Supply chain sustainability
• Compliance

Environmental Achievements

• Reduced CO2 emissions from factories by at least 30 percent compared with 2018 levels (aiming for 2025)
• Renewable energy accounted for over 50 percent of the Group’s overall electricity consumption
• Construction of a new, highly efficient heating station at Frankenthal, saving 3,700,000 kilowatt hours per year (900 tonnes of CO2)
• Increased use of recycled raw materials
• Improving the MCI (Material Circularity Indicator) of five products by 20 percent by the end of 2024

Social Achievements

• Supporting around 100 charitable projects worldwide, many focusing on education
• Supporting two community education centers in India with 100 pupils
• Donated two submersible borehole pumps for a well project in Congo
• KSB employees participated in a reforestation campaign in the Harz Mountains, planting 150 seedlings
• Introduced a company bicycle leasing scheme in Germany in summer 2023

Governance Achievements

• Implemented a compliance management system to ensure adherence to laws, directives, and guidelines
• Provided anti-trust/cartel law and anti-corruption training to over 3,000 employees in 2022
• Established a whistleblower system for reporting violations

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions from factories
• Improving the sustainability of the supply chain
• Increasing the proportion of women in management positions
• Ensuring compliance with the German Supply Chain Act

Mitigation Strategies

• Investing in energy-saving measures and environmentally friendly construction projects
• Using risk analysis to scrutinise critical issues in the supply chains
• Discussing improvement measures with suppliers
• Providing mandatory training to employees on human rights and compliance
• Implementing a whistleblower system

Supply Chain Management

Responsible Procurement

• Risk analysis to scrutinise critical issues in the supply chains
• Discussing improvement measures with suppliers
• Compliance with the German Supply Chain Act

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, UN Sustainable Development Goals

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

KSB's sustainability goals and initiatives contribute to these SDGs through water management, renewable energy use, and CO2 emission reduction.