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
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 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 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 thyssenkrupp’s sustainability strategy.
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).
For the coming reporting year we are aiming for energy efficiency gains of at least 80 GWh. The IFTs for R&D intensity and accident frequency have been adjusted due to the sale of Elevator Technology; the target for R&D intensity will be around 3.0% on a sustainable basis in the future, while accident frequency is to be improved by 0.1 to 2.8 in fiscal 2020 / 2021. We have a new target for increasing the number of women in leadership positions: 16% women in leadership positions throughout the thyssenkrupp group by fiscal year 2024 / 2025. Sustainability audits will remain a key focus in the coming reporting year and a new target of at least 60 audits has been set.
Overview about Indirect Financial Targets
|Annual energy efficiency gains of 150 GWh in 2019/2020 and 80 GWh in 2020/2021||GWh||316||215||-||Climate, energy & environment|
|100% of relevant activities covered by ISO 50001 energy management system by 2019/2020||%||100||100||+0%-p.||Climate, energy & environment|
|100% of relevant activities covered by ISO 14001 environmental management system by 2019/2020||%||93||100||+7%-p.||Climate, energy & environment|
|Sustainable adjusted R&D intensity of around 2.5%||%||3.1||4.0||-||Technology and innovations|
|15% share of women in leadership positions by 2019/2020||%||12.5||11.2||-1.3%-p.||Employees|
|Accident rate of 2.0 by 2020/2021 and improvement of at least 10% p.a.||accidents per million hours worked||3.0||2.9||-3%||Employees|
|100 supplier sustainability audits each year||#||123||86||-30%||Responsible Procurement|
|1) Original targets at group level including Elevator Technology||2) On a comparable basis w/o Elevator Techhnology||2) On a comparable basis w/o Elevator Technology|
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). In addition, we intend to incorporate industry-specific recommendations of the Sustainability Accounting Standards Board (SASB) into our sustainability reporting by our Annual General Meeting in 2022. 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.
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 2019/2020. Furthermore, additional information can be found in the relevant sections of the tk website.
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.