Strategy and targets

Sustainability strategy and targets

Sustainability is a core component of our corporate strategy. As a diversified industrial group 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.

Sustainability organization overview

Anchoring in the organization

Sustainability activities in the Group are managed and developed by the Sustainability Committee, which consists of the Group Executive Board, the CEOs of the business areas and heads of various corporate functions. The Committee takes decisions on tk’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 business areas and the corporate functions of thyssenkrupp AG, implements key processes and coordinates data collection processes as well as initiatives in the frame of tk’s sustainability strategy.

The overall sustainability management as well as the coordination of the Sustainability Committee and Council lie within the Corporate Function Technology, Innovation & Sustainability.

Sustainability Triangel

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. Progress towards these targets is measured annually and factored into variable compensation for management via the sustainability multiplier (more information can be found in the Compensation Report).

A new target has been adopted for energy efficiency: in the 2018/2019 fiscal year energy efficiency gains of 200 GWh are to be achieved.

Overview about Indirect Financial Targets

30.09.201830.09.2019 ChangeMore information
Annual energy efficiency gains of 200 GWh in 2018/2019 and 150 GWh in 2019/2020GWh253325 -Environment, climate, energy
100% of relevant activities covered by ISO 50001 energy management system by 2019/2020%83100 +17%-p.Environment, climate, energy
100% of relevant activities covered by ISO 14001 environmental management system by 2019/2020%9194 +3%-p.Environment, climate, energy
Sustainable adjusted R&D intensity of around 2.5%%2.52.5 -Technology and innovations
15% share of women in leadership positions by 2019/2020%12.012.6 +0.6%-p.Employees
Accident rate of 2.0 by 2020/2021 and improvement of at least 10% p.a.accidents per million hours worked3.02.6 -13%Employees
100 supplier sustainability audits each year#173143 -30Responsible Procurement

Overview about Indirect Financial Targets

30.09.201830.09.2019 ChangeMore information
Annual energy efficiency gains of 200 GWh in 2018/2019 and 150 GWh in 2019/2020GWh253325 -Environment, climate, energy
100% of relevant activities covered by ISO 50001 energy management system by 2019/2020%83100 +17%-p.Environment, climate, energy
100% of relevant activities covered by ISO 14001 environmental management system by 2019/2020%9194 +3%-p.Environment, climate, energy
Sustainable adjusted R&D intensity of around 2.5%%2.52.5 -Technology and innovations
15% share of women in leadership positions by 2019/2020%12.012.6 +0.6%-p.Employees
Accident rate of 2.0 by 2020/2021 and improvement of at least 10% p.a.accidents per million hours worked3.02.6 -13%Employees
100 supplier sustainability audits each year#173143 -30Responsible Procurement

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Anchoring in the organization

Sustainability activities in the Group are managed and developed by the Sustainability Committee,which is made up of the Group Executive Board, the CEOs of the business areas and heads of various corporate functions. The interests of our stakeholders play an important role in the orientation of our activities. In the reporting year thyssenkrupp conducted an extensive stakeholder survey to obtain an assessment of the key issues from the perspective of customers and investors, for example. The findings of this survey were discussed, including at an internal sustainability conference, and are now feeding gradually into the development of targets, measures and reporting.

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), 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.

Materiality analysis

Reporting boundary

Reporting cycle

Data collection processes

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.

The combined disclosures relating to the Group apply equally to thyssenkrupp AG. 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 2017/2018. Furthermore, additional information can be found in the relevant sections of the tk website.

Further information

Contacts

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