Sustainability strategy and targets
Sustainability is a core component of our corporate strategy. As a group of companies we aim to supply innovative products, technologies and services worldwide that contribute to the sustainable success of our customers.
Together with our customers we are looking to the future, and our decision-making processes include both business considerations and ecological and social aspects. The basis for this is a 360 degree view of our value and production chains. In this way we improve our performance and strengthen the future of our company.
Anchoring in the organization
The Chairman of the Executive Board bears responsibility for sustainability. Sustainability activities in the Group are managed and developed by the Sustainability Committee, which consists of the Group Executive Board, the CEOs of the segments, the heads of the trhe corporate centers and experts. The Committee takes decisions on thyssenkrupp´s overall sustainability strategy, including the setting and monitoring of targets as well as the review and implementation of key stakeholders' expectations.
Furthermore, a dedicated Sustainability Council, consisting of representatives of the segments, the services lines and group functions of thyssenkrupp AG, implements key processes and coordinates data collection processes as well as initiatives in the frame of thyssenkrupp’s sustainability strategy.
Overview about Indirect Financial Targets
|Annual energy efficiency gains of 110 GWh in 2021 / 2022 an 80 GWh in 2022 / 2023||GWh||325||255||-||Climate, energy & environment|
|Annual reduction of emission intensity by 1 t CO2 per million € sales to 34.5 t CO2 per million € sales in 2024 / 2025||t CO2 per million € sales||-||28.9||-|
|Sustainable adjusted R&D intensity of around 3.0%||%||2.6||2.4||-||Technology and innovations|
|Increase the proportion of women in management positions by at least 1% per year to 17% by 2025 / 2026||%||12.2||13.1||+1%-pts.||Employees|
|Reduce the accident frequency rate by at least 0.1 per year to 2.3 by 2023 / 2024||accidents per million hours worked||2.6||2.3||(12)%||Employees|
|At least 60 supplier sustainability audits each year||#||69||108||+57%||Responsible Procurement|
Indirect Financial Targets to secure continuous improvement
thyssenkrupp aims to continuously improve its sustainability performance.
In this frame, the Sustainability Committee has set Indirect Financial Targets (IFTs) in the areas of technology and innovations, environment, climate, energy, purchasing and people. Since fiscal year 2020 / 2021 we have been integrating sustainability activities gradually into the long-term compensation (Long-Term-Incentive) of the Executive Board and top-level management through the IFTs. This has already been implemented for the proportion of women in leadership positions and the accident frequency rate. To reflect our climate targets, since fiscal 2021 / 2022, emissions intensity excluding the steel business and, with reference to the steel business, the volume of net climate-neutral steel produced have also been integrated into long-term compensation. In the current fiscal year 2022 / 2023, the improvement in the employee net Promoter Score (eNPS), which is determined as part of the annual employee satisfaction survey, will be included in long-term compensation for the first time; the increase in the proportion of women in leadership positions is also included again (more information can be found in the Compensation Report). All established IFTs are being continued with the aim of continuous improvement and are constantly being adjusted and extended in parallel with our ongoing strategic development.
For the current fiscal year 2022 / 2023 we are aiming for energy efficiency gains at least 85 GWh. The aim is to reduce the emissions intensity excluding the steel activities by 1 ton CO2 per million € sales to 34.5 tons CO2 per million € sales in fiscal year 2024 / 2025. The target for R&D intensity will be around 3.0% on a sustainable basis in the future. The accident frequency rate already exceeded the target set for fiscal year 2023 / 2024 ahead of schedule. The targets previously set for the group in the planning period have therefore been reduced by 0.2 points: Accordingly, our revised target is to improve the accident frequency rate to 2.3 by fiscal year 2023 / 2024. Across the entire thyssenkrupp group, compares with 2019 / 2020, we aim to increase the proportion of women in leadership positions to 14% in the present fiscal year and to 17% by fiscal year 2025 / 2026. Sustainability audits will remain a key focus in the current reporting year and a new target of at least 88 audits has been set. Analogously to integration in long-term compensation, from the current fiscal year the improvement in the eNPS will be implemented as a new IFT with a target annual improvement of 3.0 points.
Integrated reporting approach
thyssenkrupp provides continuous and fully integrated reporting on its sustainability performance in its annual report and on its corporate website, based a set of national and international standards like the Global Reporting Initiative (GRI), the UN Global Compact, Greenhouse Gas Protocol, Task Force on Climate-related Financial Disclosures (TCFD), International Integrated Reporting Council (IIRC), Sustainability Accounting Standards Board (SASB), IFRS and others as well as applicable regulations like the German Commercial Code (HGB), the EU CSR Directive and the German Accounting Standards (DRS). The company does not publish a printed sustainability report or a separate online report. All essential content is published in our annual reporting and additional information on our webpages.
Overview of non-financial disclosures
The full non-financial disclosures pursuant to § 289b HGB are integrated in the various sections of the combined management report as this information is important for understanding the business performance and position of the Group. In fiscal year 2021 / 2022 thyssenkrupp AG was exempt for the first time from the obligation to present on non-financial statement nevertheless still applies equally to the group and thyssenkrupp AG. For the reporting period we are required for the first time to make disclosures within the framework of the EU Taxonomy.
In compiling the information, various frameworks, e.g. UN Global Compact, were used as a guide. Risks of negative environmental and social impacts from thyssenkrupp’s business activities are also addressed in the various sections of the management report. Based on this, there are no additional risks to be reported in the risk report. Respect for human rights and social matters in the meaning of German GAAP (HGB) are addressed as cross-cutting issues which have large overlaps with each other and with employee concerns. Beyond this, the aspect of social matters is important but not necessary for an understanding of our business performance, the situation of the Group, or the impacts of business activity.
The folllowing overview of the non-financial disclosures refers to the relevant sections in the annual report 2021 / 2022. Furthermore, additional information can be found in the relevant sections of the tk website.
ESG rating agencies assess a company's engagement in sustainable business practices. The rating results, known as score, enable transparency as well as comparability of a company's sustainability performance with respect to environmental, social and governance factors. Various stakeholder groups such as investors, customers and creditors demand ESG ratings as a prerequisite for business relationships.
Leading rating agencies regularly recognize thyssenkrupp's engagement in environmental, social and responsible corporate governance with good results.
We regard the ratings by the rating agencies as valuable feedback on our sustainability performance. We use the results as an opportunity to analyze our sustainability activities, continuously drive improvements and integrate new requirements into our sustainability management.
thyssenkrupp is a group of companies consisting of industrial and technology businesses. The rating assessments listed below are answered by thyssenkrupp AG and relate to the sustainability performance of the thyssenkrupp Group.
ESG Ratings – Overview