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 Chairwoman 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 and the heads of corporate center. 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 80 GWh in 2020 / 2021 and 110 GWh in 2021 / 2022||GWh||215||325||-||Climate, energy & environment|
|Sustainable adjusted R&D intensity1) of around 3.0%||%||3.4||2.6||-||Technology and innovations|
|Increase the proportion of women in management positions by atleast 1% per year to 16% by 2024 / 2025||%||11.2||12.2||+1%-p.||Employees|
|Reduce the accident frequency rate by at least 0.1 per year to 2.5 by 2023 / 2024||accidents per million hours worked||2.9||2.6||(10)%||Employees|
|60 supplier sustainability audits each year||#||86||69||(20)%||Responsible Procurement|
|1) From 2020 / 2021 impairment losses on capitalized development costs are no longer included in the calculation of R&D intensity. The prior-yearfigure was adjusted accordingly from 4.0% to 3.4%.|
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. In the 2020 / 2021 fiscal year, for the first time, achievement of these targets no longer affects the amount of the one-year variable compensation (Short-Term Incentive) of the thyssenkrupp Executive Board and the CEOs of the segments via the sustainability multiplier. Instead, starting in the 2020 / 2021 fiscal year, the sustainability activities of relevance for compensation will gradually be integrated into the long-term compensation (Long-Term-Incentive) of the Executive Board through the IFTs. This has already been implemented for the proportion of women in leadership positions and the accident frequency rate (more information can be found in the Compensation Report). To reflect our climate targets, in fiscal 2021 / 2022, emissions intensity excluding the steel business and, with reference to the steel business, the volume of climate-neutral steel produced will be integrated into long-term compensation. 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 2021 / 2022 we are aiming for energy efficiency gains at least 110 GWh. The target for R&D intensity will be around 3.0% on a sustainable basis in the future, while accident frequency shall improve by 0.1 p.a. to 2.5 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 13% in the present fiscal year and to 16% by fiscal year 2024 / 2025. Sustainability audits will remain a key focus in the current reporting year and a new target of at least 60 audits has been set. From the present fiscal year, the emissions intensitiy excluding steel activites is established as a new IFT (annual target: reduce CO2 emisissions by 1 t CO2 per million Euro sales).
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.
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 2020 / 2021. 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