Sustainability strategy

In the year under review, the KION Group launched the implementation of its revised ‘KION 2027’ strategy. Based on the Group’s vision, it provides orientation for strategic development for the coming years in five clearly defined fields of action: Energy, Digital, Automation, Innovation and Performance. (see KION Group Annual Report).

Sustainability was incorporated into the strategy process as a basic attitude and guideline for action; corresponding elements can be found in the respective fields of strategic action. The KION Group’s corporate values defined in 2017 (Integrity, Collaboration, Courage and Excellence) also make clear reference to sustainability – and with the inclusion of sustainability principles in the Group-wide KION Group Code of Compliance, they shape the actions of every individual in the company.

2018 milestones

Thanks to its consistent and targeted approach, the KION Group again hit important milestones in improving its sustainability in 2018. With the Sustainability Report 2017, for example, the company adhered to the requirements of the newly enacted CSR Directive Implementation Act (CSR-RUG) for the first time and published a corresponding non-financial declaration in its Sustainability Report. By participating in the CDP (formerly the Carbon Disclosure Project) for the first time, the KION Group published its climate protection strategies and measures in detail. The results of the ranking will be available in early 2019 (see cdp.net).

The KION Group’s commitment to sustainability is increasingly also being recognised by investors and financial institutions. For instance, the company achieved prime status (C+) in the ISS-oekom rating, one of the world’s largest service providers for responsible investing. In addition, the KION Group was listed in the ODDO BHF Sustainable Equities Europe sustainability fund, which invests in particularly sustainable companies.

Within the company, the operating units continued the programmes already initiated. More than 100 individual activities are currently being pursued in order to meet the individual goals that have been laid out. The creation of corresponding roles in development and purchasing in the reporting year further strengthened the sustainability organisation within the Group.

To successfully continue on its path to greater sustainability in the future, the KION Group again conducted a materiality analysis in 2018, identifying the key issues for its sustainability management both from a Group perspective and at the level of the operating units. The stakeholder perspective was incorporated into the analysis through an extensive survey of stakeholder groups. This approach ensures that the KION Group’s sustainability activities continue to focus clearly on issues of particular importance to both the company and its stakeholders (see Materiality defines strategy development). The findings of the analysis will form the basis for the Sustainability Report 2019.

Clear sustainability strategy showing the way

With ambitious goals, efficient structures and processes and an effective reporting system, the KION Group aims to deliver on its claim to leadership in sustainability matters as well. The sustainability strategy established in 2017 serves as the guideline on this journey (Figure 1). Run under the motto, ’We are moved by sustainability’, it summarises the key trajectories and defines the respective corporate mindset with regard to the four priorities: Performance, Products, Processes and People.

Figure 1KION Group sustainability strategy

In 2018, one prioritised activity was the internal communication. In addition, awareness among employees of the issue of sustainability was promoted through training courses for managers and through staff involvement in the stakeholder surveys that were part of the materiality analysis. In external communications, the Annual Report 2017 sent a clear signal, making the KION Group’s commitment to sustainability transparent to a broad audience with extensive features and video clips.

The KION Group aims to be appropriately represented in the relevant sustainability ratings and rankings, based on the periodically published Sustainability Report, which complies with current legal regulations.

Materiality as the basis for strategy development

The materiality assessment performed by LMH EMEA in 2015 formed the basis for developing the KION sustainability strategy. This gave rise to a systematic approach, which addresses and prioritises the material challenges facing the Group.

Figure 2Findings of the materiality analysis

In 2018, this approach was revised and further substantiated with a Group-wide materiality analysis, taking into account, among other things, the integration of Dematic and the greater regionalisation of the sustainability programme within the operating units. A worldwide survey of the most important stakeholder groups produced a comprehensive synopsis of opinions. Based on the United Nations’ Sustainable Development Goals (SDGs), the KION Group’s sustainability task force (consisting of the sustainability coordinators of the operating units) identified 15 topics that were evaluated at the level of all operating units and then aggregated into findings for the entire KION Group at workshops. In these, opportunities and risks arising from business activities were considered, as were the positive and negative effects of the company’s activities on the environment and society. This allowed for the identification of the issues of relevance to the Group as a whole.

The findings of the materiality analysis and initial action plans will be presented to the Sustainability Steering Committee in
January 2019 and subsequently incorporated into the KION Group’s sustainability strategy. This report is therefore still based on the results of the previous materiality analysis from 2015.

Table 1 shows which topics of the Global Reporting Initiative Guidelines (GRI Standards) the KION Group is addressing as part of its material challenges. These can be relevant both within and outside the organisation. The analysis of respective boundaries is important to determine the control mechanisms for the particular topics within the KION Group.

Group-wide sustainability programme consistently being implemented

The KION Group aims to continuously improve its sustainability performance. To this end, a Group-wide sustainability programme with 14 action fields has been derived from the results of the first materiality analysis (Figure 3). Underpinning each action field is a specific programme with aims, measures and, where appropriate, quantifiable performance indicators (Table 2). Responsibility for implementing these measures lies with the relevant managers, who are also responsible for integrating sustainability aspects into the processes. The sustainability targets define a minimum standard that is binding for the entire KION Group. Individual organisational units may go beyond these standards in their sustainability activities and/or extend them.

Table 2Action field scope and objectives