Climate Change Data

Environmental Metrics

Governance Achievements

• Updated release of the KN Ethics & Compliance Programme in December 2017, including clear guidance for policies and procedures, global communication, and training initiatives (including anti-bribery, anti-corruption, and anti-trust training).

Climate Goals & Targets

Environmental Challenges

• Margin pressure due to consolidation in the supplier market and a more competitive market environment.
• Increasing pressure from customers for longer credit terms (days of trade receivables outstanding increased to 53.9 days compared to 46.6 days in 2016).
• Uncertainty of the global economic development, geopolitical instability, volatile currency fluctuations and the financial markets.

Mitigation Strategies

• Improved market dynamics resulted in strong turnover growth of 11.2%.
• Further productivity increases.
• Appropriate risk diversification and avoidance of regional and industry clustering.
• Permanent monitoring of IT systems, redundant infrastructure, and interlinked data centers with back-up structures and business continuity plans.
• Comprehensive and worldwide staff training and a network of compliance officers at regional and national levels to counteract organized crime, terrorism, legal and non-compliance risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• CO2 neutralisation

Environmental Achievements

• Net Zero Carbon programme launched, aiming for comprehensive CO2 neutralisation (Scope 3) by 2030. All less-than-container-load (LCL) shipments to be CO2 neutral from 2020 onwards.
• Started nature projects in Myanmar and New Zealand and invested in various nature-based CO2 compensation projects.

Social Achievements

• Not disclosed

Governance Achievements

• Updated release of the KN Ethics & Compliance Programme in December 2019.
• Risk management is a fundamental element of the Group’s business practice on all levels and is embedded into the business strategy, planning and controlling processes of the Group.

Climate Goals & Targets

Environmental Challenges

• Uncertainty of the global economic development, geopolitical instability, volatile currency fluctuations and the financial markets.
• Margin pressure due to consolidation in the supplier market and a more competitive market environment.

Mitigation Strategies

• Focus on customer service and cost efficiency, constant improvement of operational systems and their further digitalisation.
• Cost control to ascertain leverage benefits, digitisation for productivity improvements, investments in new opportunities connected to value expansion and acquisitions as an accelerator for reaching the strategic goals.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CO2 neutralisation

Environmental Achievements

• All less-than-container-load (LCL) shipments are CO2 neutral since 2020.

Social Achievements

• Successfully completed the reorganisation of Contract Logistics in 2020.

Governance Achievements

• Updated release of the KN Ethics & Compliance Programme in December 2020.

Climate Goals & Targets

Environmental Challenges

• Global recession caused by COVID-19.
• Significant drops in trade flows.
• Capacity shortage in Air Logistics and Sea Logistics.
• Reduced land transport activities in Europe due to COVID-19 pandemic measures.
• Lower demand caused by COVID-19 down-trading in Contract Logistics.

Mitigation Strategies

• Strict cost control.
• Focus on scalable solutions, particularly in e-commerce and pharma (Contract Logistics).
• Expansion of services to industry-specific solutions (Road Logistics).
• Development of world class expertise in industry- and product-specific supply chain services.
• Acquisition of Rotra in Belgium and the Netherlands (Road Logistics).
• Short-time work in several jurisdictions.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability

Environmental Achievements

• Shipping all Sea Logistics less-than-container-load (LCL) shipments CO2e neutral by compensating through nature-based projects since 2020.
• Renewable energy accounted for 78% of the total energy consumption in 2021.

Social Achievements

• Not disclosed

Governance Achievements

• Updated release of the KN Ethics & Compliance Programme in December 2021.

Climate Goals & Targets

Environmental Challenges

• Uncertainties of the COVID-19 pandemic and highly strained supply chains.
• Disruptive events in global supply chains due to the COVID-19 pandemic and operational bottlenecks in carrier, port and trucking operations.
• Significant capacity absorbed by large numbers of ships waiting in front of ports.
• Significant shortage of drivers and capacity in Road Logistics operation in Europe.

Mitigation Strategies

• Proactive response to frequent changes and seizing opportunities.
• Adapting and transforming service offering to meet customer needs.
• Shifting focus to operational challenges to ensure customer excellence.
• Investing in various nature-based CO2 compensation schemes.
• Initiatives and projects to determine best solutions for reducing emissions for its customers.
• Cooperation and agreements with world class carriers to jointly strive towards carbon emissions reduction using sustainable aviation fuel (SAF).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity and Inclusion
• Business Integrity
• Employee Satisfaction and Retention
• Sustainable Supply Chain

Environmental Achievements

• Reduced absolute reported emission figures by 11% to 14.422 million tonnes in 2023 compared to 2022.
• Increased share of hybrid and electric company cars from 17% to 32% and electric trucks in own fleet to 1.5%.
• Achieved 100% renewable electricity usage for Kuehne+Nagel sites (98% including recent acquisitions).
• Sourced 13,391 tonnes of sustainable marine fuel and 26 million litres of sustainable aviation fuel in 2023, reducing emissions by approximately 110,000 tonnes compared to conventional fuels.
• Contract Logistics achieved over 20% on-site electricity production using photovoltaics.

Social Achievements

• Achieved 80% response rate to Employee Experience survey and 76% response rate to Great Place to Work survey.
• Certified as a Great Place to Work in 53 countries.
• Launched Voice of the Employee framework.
• Implemented a new Performance Enablement process with 99% year-end conversation completion rate.
• Introduced a digital pre-onboarding experience and a Buddy Programme.

Governance Achievements

• 96% of employees completed annual Code of Conduct confirmation training.
• Completed online anti-bribery and anti-corruption training for around 7,000 people managers.
• Achieved ISO 27001 information security certification in Germany.
• Launched a generative AI policy.

Climate Goals & Targets

Environmental Challenges

• Reducing emissions along the value chain (Scope 3 emissions account for >98% of total emissions).
• Supply chain disruptions due to geopolitical conflicts, labor shortages, and raw material shortages.
• Navigating a complex regulatory landscape (IMO, EU ETS, CBAM).

Mitigation Strategies

• Investing in sustainable fuels (SAF, SMF, HVO) and Book and Claim model.
• Developing sustainable logistics solutions for renewable energy deployment.
• Improving digital customer experience and supply chain optimization.
• Strengthening supplier engagement and collaborations.
• Offering guidance and support to customers on upcoming regulations.

Supply Chain Management

Supplier Audits: 42,315 approved suppliers year-end 2023; Integrity Due Diligence process for 641 high-risk suppliers.

Responsible Procurement

• Supplier Code of Conduct
• Integrity Due Diligence (IDD) process
• Anti-bribery and anti-corruption training for high-risk suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Emerging regulations
• Changing market conditions

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy logistics

Reporting Standards

Frameworks Used: GRI, SASB (partially), UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 27001 (Germany)

Third-party Assurance: Swiss Climate AG

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 14 (Life below water)

Initiatives contribute to these goals through emission reductions, renewable energy investments, sustainable supply chain practices, and community support projects.

Sustainable Products & Innovation

• Sustainable aviation fuel (SAF) service offering
• Book and Claim solutions for SAF, SMF, and HVO
• Sea-Air Logistics
• Renewable energy logistics solutions

Awards & Recognition

• Lenovo’s sustainability excellence award 2023
• Official Freight Forwarding and Logistics Partner by COP28