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Sustainability Strategy and Target...

Sustainability Strategy and Targets

Sustainability is a core component of our corporate strategy. 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 at thyssenkrupp are managed and developed by the Sustainability Committee, which consists of the Executive Board from the thyssenkrupp AG, the CEOs of the segments, Heads of Corporate Centers and internal 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 of non-financial targets

thyssenkrupp		30.09.2023	30.09.2024	Change	More information
Annual energy efficiency gains of 205 GWh in 2023 / 2024 and 125 GWh in 2024 / 2025	GWh	340	360	+6%	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	31.2	31.1	(0,3)%
Sustainable adjusted R&D intensity of around 3.0%	%	2.8	2.9	+0.1%-pts.	Technology and innovations
Increase the proportion of women in management positions by at least 1% per year to 17% by 2025 / 2026	%	14.6	16.1	+1,5%-pts.	Employees
Reduce the accident frequency rate to 1.9 by 2027 / 2028	accidents per million hours worked	2.4	2.4	0%	Employees
Achievement of a High Risk Reduction of 36.4% by 2026 / 2027	%	-	57.0	-	Responsible Procurement
Increase in the employee Net Promoter Score to a value > 0 by 2025 / 2026	#	(4)	(5)	-

Non-financial targets to secure continuous improvement

thyssenkrupp aims to continuously improve its sustainability performance.
In this frame, the Sustainability Committee has set non-financial targets (NFT) 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 NFTs. In this first fiscal year, this has already been implemented in respect of the proportion of women in leadership positions and the accident frequency rate. To reflect our climate targets, since fiscal 2021 / 2022, CO₂ emissions intensity, calculated as the total of our direct emissions (Scope 1) and emissions from purchased energy (Scope 2) relative to sales, excluding the steel business and, with reference to the steel business, the volume of net CO₂-reduced steel has been integrated into long-term compensation. For fiscal year 2022 / 2023, we integrated the improvement in our employee Net Promoter Score (eNPS) into long-term compensation for the first time and the increase in the proportion of women in leadership positions was once again included. The thyssenkrupp eNPS is part of the annual Employee Pulse Check survey and indicates the willingness of employees to recommend thyssenkrupp as an employer. Starting in fiscal year, 2023 / 2024, we have included the High Risk Supplier Reduction (HSR) as a key indicator to implement the annual reduction in the proportion of suppliers still classified as high risk - even after any risk-mitigating measure- relative to the total population of potentially high-risk suppliers in long-term compensation. Risk categorization is based on the risk analysis required by the German Act on Corporate Diligence Obligations in Supply Chain (LkSG). In this way, we aim to achieve a general reduction in the risk of violating the legal provisions of this legislation in respect of environmental protection, human rights, and occupational safety within our portfolio of suppliers. Further, if other risks are identified in the annual and ad hoc risk analysis, these must be mitigated as soon as possible by prompt measures that are consistent with the provisions of the legislation. For the current 2024 / 2025 fiscal year, due to its significance, we have again integrated the continuous improvement of the accident frequency rate into long-term compensation. (Further details can be found in the Compensation report). All established NFTs are aligned to the aim of continuous improvement and are constantly being adjusted and extended in parallel with our ongoing strategic development.

The target for the current fiscal year 2024 / 2025 is to improve energy efficiency by at least 125 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. In the current fiscal year 2024 / 2025, the adjusted R&D intensity should be around 3.0%. Across the entire company, we aim to increase the proportion of women in leadership positions to 17% by fiscal year 2025 / 2026. As an indicator for employee satisfaction, we are aiming to increase the employee Net Promoter Scores to a value of > 0 by the 2025 / 2026 fiscal year. With the aid of the measures we take to reduce the sustainability risks in our supplier portfolio, which we report using the HSR indicator, we aim to achieve a value of 36.4 % by fiscal year 2026 /2027. This represents an improvement of just under 50 percentage points from implementation of the target value in fiscal year 2023 / 2024. From the current fiscal year, we are retaining an improvement in the accident frequency rate to 1.9 by fiscal year 2027 / 2028 in line with the renewed integration of this value as an NFT for the long-term compensation of the Executive Board and top-level management.

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.

A central element of the materiality analysis of sustainability issues is the view of the company’s management. This approach is based on established management reporting standards (such as the German Accounting Standards, DRS). Management’s view naturally includes the interests of the various stakeholders as well as the requirements of the reporting standards, and assesses them in the context of the company. Accordingly, the sustainability strategy is fully integrated in the corporate strategy.

Our integrated sustainability reporting system is based on the reporting boundary of our financial reporting, which in turn is based on IFRS standards and the German Commercial Code (HGB). Unless otherwise stated, the information refers to all fully consolidated operations. In accordance with IFRS we also report on our 50% shareholding in Hüttenwerke Krupp Mannesmann GmbH (HKM).

Our Annual Report includes key information for the fiscal year, which at thyssenkrupp starts on 1st October and ends on 30th September. Additional reporting on the webpage takes place on an ongoing basis and is not tied to a specific reporting cycle. Performance indicators refer to a fiscal year. Unless otherwise indicated, the data always refer to the past fiscal year.

Integrated sustainability reporting includes a large amount of data collected via a variety of data systems. These data systems are adapted to the specific challenges of the area involved. All content in the Annual Report is audited externally, as are relevant environmental and energy data (e.g. CO₂ emissions or energy consumption).

Overview of non-financial disclosures

The full non-financial disclosures pursuant to Art. 289b ff. and Art. 315b ff. of the German Commercial Code (HGB) is 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 from the obligation to present a non-financial statement as an individual company. The information in the non-financial statement nevertheless still applies equally to the group and thyssenkrupp AG. Since the last reporting period, we are required for to make additional disclosures within the framework of the EU Taxonomy on the taxonomy alignment of our economic activities. These disclosures are part of our non-financial statement and are therefore also integrated into the combined management report.

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 our rsik analysis no additional material non-financial risks that have to be reported in accordance with Art. 289c of the German Commercial Code (HGB) have been identified. The aspects "respect for human rights" and "social issues" in the meaning of German Commercial Code (HGB) are addressed as cross-cutting issues which have large overlaps both between these issues and with "employee issues." Beyond this, the aspect of social matters is important but not necessary for an understanding of our business performance, the situation of thyssenkrupp, or the impacts of business activity.

The folllowing overview of the non-financial disclosures refers to the relevant sections in the annual report 2023 / 2024. Furthermore, additional information can be found in the relevant sections of our website.

Environmental issues	Employee issues	Respect for human rights	Social issues	Anti-corruption and prevention of bribery
Sustainability and non-financial targets	Sustainability and non-financial targets	Sustainability and non-financial targets	Social responsibility	Sustainability and non-financial targets
Environment, climate and energy	Employees	Sustainability in supplier management		Compliance
Sustainability in supplier management	Sustainability in supplier management	Employees		Sustainability in supplier management
Opportunity and risk report	Opportunity and risk report	Opportunity and risk report		Opportunity and risk report
EU Taxonomy	EU Taxonomy	EU Taxonomy		EU Taxonomy
				Corporate governance statement

ESG Ratings

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 consisting of industrial and technology businesses. The rating assessments listed below are answered by thyssenkrupp AG and relate to the sustainability performance of the whole company.

ESG Ratings – Overview

For the ninth time in a row, CDP has recognized thyssenkrupp as one of the world's leading companies in climate protection by including the company in its Climate Protection A List. CDP is a non-profit organization that collects climate data from companies, cities, countries and regions worldwide and makes it available to investors. CDP conducts its annual assessment on behalf of over 700 financial instiitutions with USD 140 trillion in assets, among others, and has reviewed over 24,800 companies worldwide as part of its assessment. The rating scale ranges from A for best performance to D-. With its inclusion in the CDP's “Climate A List” last year, thyssenkrupp is among the companies that have made it into the best category.

Find more information about CDP here.

MSCI ESG Research, is a global leader in ESG sustainability analysis and ratings, with the aim of identifying material ESG risks and opportunities and measuring a company's resilience to long-term, industry-relevant ESG risks. The rating scale ranges from AAA for the best-rated companies to CCC. thyssenkrupp received an "A" rating in 2024 and is thus among the best 30 percent of companies in the same industry rated by MSCI.

Find more information about MSCI here.

Sustainalytics rates more than 16,000 companies worldwide, making it one of the largest sustainability rating agencies. Sustainalytics measures the degree of material ESG risk a company is exposed to on a scale of 0 to100 and assesses how well it manages its risks.

Due to its industry classification, thyssenkrupp is already rated with a high ESG risk exposure in the baseline, which can be reduced through strong ESG risk management. In 2023, thyssenkrupp significantly improved its performance again and achieved a rating of 25.6, which made it one of the top 6% of the "Industrial Conglomerates" sector.

Find more information about Sustainalytics here.

ISS ESG is one of the world's leading rating agencies in the area of sustainable investments. The rating scale ranges from A+ to D-. thyssenkrupp was awarded a "C" in 2021. In the industry comparison the so-called Decile Rank, which ranges from 1 (high (relative) performance) to 10 (low (relative) performance) and indicates how well a company performs in its industry, thyssenkrupp received a 2.

Find more information about ISS ESG here.

The Ecovadis rating analyzes and evaluates policies, measures and published reporting of over 130,000 companies of all sizes and sectors in the areas of environment, labor and human rights, ethics and sustainable procurement. The rating scale ranges from 0 to 100. thyssenkrupp was rated with a score of 72 in August 2024 and awarded a silver medal. With this result thyssenkrupp is among the top 15% of companies rated by Ecovadis.

Find more information about ecovadis here.

Further information

Sustainability Team thyssenkrupp AG

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We have compiled answers to frequently asked questions. As a general rule you will also find most of the information on the relevant pages, e.g. environment & energy or compliance. Our experts would be pleased to help with any further information you may require on sustainability at thyssenkrupp. Direct your inquiries to the “Sustainability Strategy, Reporting & Ratings” team. Please note that due to the large number of inquiries, it is not always possible to answer all questions. In addition, journalists can contact the press department, investors and analysts our Investor Relations team, and suppliers our Purchasing function.

Where can I find thyssenkrupp’s sustainability report?

thyssenkrupp provides continuous and fully integrated reporting on its sustainability performance within its annual report and on its corporate website. Accordingly, the sustainability report is made up of various documents. The overview page on sustainability provides links to all key content.

Can you send me a printed sustainability report?

As neither our website content nor our annual report is published in printed form, the content is only available online.

Who is responsible for sustainability at thyssenkrupp?

At thyssenkrupp, responsibility for sustainability lies with the Executive Board and the Sustainability Committee. Activities are coordinated by the corporate function Technology, Innovation, and Sustainability. Click here to find out more.

How does thyssenkrupp manage the area of human rights?

Human rights play a relevant role in various management processes at thyssenkrupp. Accordingly, our human rights policy is made up of various documents, above all the Code of Conduct, the Supplier Code of Conduct, further policy for Occupational Safety and Health, and the International Framework Agreement. It is therefore implemented in particular in the thyssenkrupp's processes relating to compliance, procurement and employee rights.

I have a project that could be of interest to thyssenkrupp and am looking for support. Who should I contact?

thyssenkrupp is involved in a large number of projects around the world. In your inquiry please indicate the connection your project has with thyssenkrupp’s business and which of the company’s sites it could fit in with.

In which sustainability indexes is thyssenkrupp listed and how well does the company rank?

thyssenkrupp is included in a variety of indexes and rankings, such as CDP, oekom, sustainalytics and MSCI. These days, the majority of indexes rank individual aspects rather than providing an overall rating. At CDP (formerly the Carbon Disclosure Project), which still provides an overall rating, thyssenkrupp was included on CDP's global A List in 2023. We have thus been recognized as one of the world's leading companies in climate protection.

I am writing a degree dissertation on the subject of corporate social responsibility. Does thyssenkrupp take part in studies of this kind?

Like many other major corporations, thyssenkrupp receives numerous requests to take part in studies. As a result we can only take part in a select few. Please check out this website first to see if the information you require is not already provided.