Organisation and management

GRI-Indicators

The Executive Board of KION GROUP AG is responsible for the operational management of the KION Group. As at the end of 2016, it comprises four members.

The Executive Board maintains a trusting relationship with, and is monitored by, the Company’s Supervisory Board. This also advises the Executive Board in its handling of core tasks and major business transactions. The Supervisory Board’s size and composition is governed by the German Codetermination Act (MitbestG). KION GROUP AG’s Supervisory Board comprises 16 members, consisting of eight shareholder and eight employee representatives.

For further information on the duties and composition of the Executive Board and Supervisory Board of KION GROUP AG, see the Corporate governance report which is available online as part of the Annual Report 2016.

The Executive Board and Supervisory Board of KION GROUP AG believe that an uncompromising commitment to rigorous corporate governance oriented on best practice standards is essential to the Company’s long-term success. Compliance with these principles also promotes the trust that its investors, employees, business partners and the public have in the management and monitoring of the Company.

The KION Group works according to recognised standards of good, responsible corporate governance. The German Corporate Governance Code (DCGK) guides how it manages and controls the Company. The KION Group fulfils all of the DCGK’s recommendations aside from one relating to an excess in the D&O insurance policies for Supervisory and Executive Board members. The annual declaration of compliance which it is required to submit in accordance with section 161 of the German Stock Corporate Act (AktG) is accessible on its corporate website. Further information can also be found in the Corporate governance report.

To ensure professional and responsible corporate governance, the Executive Board needs to rely on the risk management system established in the Company to regularly gather information about current risks and how they are evolving, and then report on this to the Supervisory Board’s Audit Committee. The KION Group’s risk management system is documented in a Group risk policy that defines tasks, processes and responsibilities, and sets out the rules to identify, assess, report and manage risk. Specific individual risks are then reported by the relevant Group entity using an online reporting tool. Reporting on cross-segment risks and Group-wide risks is carried out by Corporate Controlling and the relevant departments. The risks that have been reported are reviewed on a quarterly basis and re-assessed until the reason for reporting a risk no longer exists (see the Risk report in the Combined Management Report section of the Annual Report 2016).

Sustainability organisation

Principles and guidelines