Strategy and targets
Sustainability is a management task at thyssenkrupp
For a diversified industrial group like thyssenkrupp, sustainability means positioning the company across a range of topic areas to ensure its long-term success. Accordingly, responsibility for sustainability lies directly with the Executive Board. The topic areas range from growth to compliance to human rights to resource efficiency. Our More&Better approach means sustainability is firmly integrated in our corporate strategy and our core business. We use our engineering expertise to find technological and business solutions that meet the global need for “more” goods and services in a “better” way. Successful sustainability management therefore requires a 360° view of our value chains.
Indirect financial targets for systematic performance improvements
Ambitious targets for our financial indicators and the targeted improvement of strategic areas via indirect financial parameters are important elements of our Strategic Way Forward.
Ambitious targets for our financial indicators and the targeted improvement of strategic areas via indirect financial parameters are important elements of our Strategic Way Forward. To ensure the positive development of our financial indicators in the short, medium, and long term, we must also systematically improve the performance of important indirect financial parameters. thyssenkrupp has therefore set itself indirect financial targets (IFTs) in the areas technology and innovations, environment, climate, energy, purchasing, and people. Our progress towards these targets is measured annually by thyssenkrupp’s Sustainability Committee, which includes the Group Executive Board, the CEOs of the business areas, and heads of corporate functions. In addition these Groupwide targets are used to form a so-called sustainability multiplier as part of the variable component of Executive Board compensation. Sustainability activities are implemented in the various functions and are coordinated by Corporate Function Technology, Innovation & Sustainability, which reports directly to the CEO.
Technology and innovations
In recent years, research and development (R&D) spending has been increased significantly to an efficient level. By means of a sustainable R&D intensity of around 2.5% of sales (excluding trading and distribution businesses) we aim to secure continuing innovativeness and the efficiency of research spending.
Through systematic identification and leveraging of energy efficiency potential in the operating units, our aim by fiscal 2019/2020 is to increase energy efficiency sustainably by 3.5 TWh compared with 2012/2013.
Operational environmental and energy management is also being improved step by step. It is our aim to implement ISO 50001 energy management systems and ISO 14001 environmental management systems at all relevant operations by fiscal 2019/2020.
To avoid reputational and default risks and improve supplier performance we have documented our sustainability requirements for suppliers in our "thyssenkrupp Supplier Code of Conduct". Adherence to this code is to be reviewed by means of 100 supplier audits annually.
To ensure thyssenkrupp's workforces and management teams continue to display a high level of motivation, skills, and performance, we need greater diversity, in particular in terms of age, gender, and origin. In an initial step we aim to increase the share of women in management positions to 15% by fiscal 2019/2020.
Health and safety is an ongoing top priority at thyssenkrupp. For this reason we have converted our target for reducing accident frequency in the reporting year into a continuous target: The number of accidents per 1 million hours worked is to be reduced by at least 10% each year compared with the prior year.