Incorporating the EU Taxonomy

The version of the EU Taxonomy Regulation that was applied for 2025 with its corresponding delegated acts provides a classification system that defines sustainability criteria for economic activities across six environmental objectives: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems.

Detailed tables in accordance with the Taxonomy Regulation can be found in the annex to the Group sustainability report (see ‘Further disclosures on the EU taxonomy’).

Taxonomy-eligible economic activities

An interdisciplinary team reviewed the Group’s relevant economic activities and, using the NACE codes, allocated them to the corresponding taxonomy-eligible activities as defined in the Taxonomy Regulation. For 2025, the KION Group assessed taxonomy eligibility for the economic activities defined in the Climate Delegated Act (Delegated Regulation (EU) 2021/2139), the Complementary Climate Delegated Act (Delegated Regulation (EU) 2022/1214), the Amending Climate Delegated Act (Delegated Regulation (EU) 2023/2485), the Environmental Delegated Act (Delegated Regulation (EU) 2023/2486), and the Disclosures Delegated Act (Delegated Regulation (EU) 2021/2178 as amended on November 21, 2023). The assessment concluded that the KION Group’s economic activities relate to the environmental objectives of climate change mitigation (CCM) and transition to a circular economy (CE). The four remaining environmental objectives were also evaluated for potentially taxonomy-eligible activities, but no taxonomy eligibility was identified.

In addition, Delegated Regulation (EU) 2022/1214 outlines specific disclosure requirements for economic activities related to fossil gas and nuclear energy. As the KION Group is not engaged in economic activities within these energy sectors, there are no implications for the KION Group’s reporting, nor for the corresponding taxonomy metrics. The templates specified in the supplementary Delegated Regulation are not applicable and are not included in this report.

The KION Group’s taxonomy-eligible economic activities are listed in the table below.

With regard to the CapEx and OpEx metrics, the economic activities CCM 7.2, 7.3, 7.4, 7.5, and 7.6 were not checked for taxonomy alignment because they are currently classified as economic activities that are not significant to the Group based on the financial thresholds that have been defined.

Assessment of the taxonomy eligibility of economic activities

The current version of the EU Taxonomy Regulation does not provide a taxonomy eligibility classification for all economic activities. As in previous years, a significant proportion of the economic activities in the area of automation solutions in the Supply Chain Solutions segment were therefore not taxonomy-eligible.

For the KION Group, the most relevant economic activities related to the CCM environmental objective are ‘3.2 Manufacture of equipment for the production and use of hydrogen’, ‘3.4 Manufacture of batteries’, ‘3.6 Manufacture of other low-carbon technologies’, and ‘3.10 Manufacture of hydrogen’. The KION Group regards economic activity 3.6 as the most appropriate for its core manufacturing activities, since no industry-specific economic activity has been defined for the intralogistics sector as yet. This activity relates to technologies that demonstrate substantial savings of GHG emissions over their lifecycle compared with the best performing alternative technology available on the market.

In addition, the KION Group identified several activities related to the CE environmental objective as taxonomy-eligible. The activities relevant to the Group under this environmental objective are ‘4.1 Provision of IT/OT data-driven solutions’, ‘5.1 Repair, refurbishment, and remanufacturing’, ‘5.2 Sale of spare parts’, ‘5.4 Sale of second-hand goods’, and ‘5.5 Product-as-a-service and other circular use- and result-oriented service models’.

Assessment of the taxonomy alignment of economic activities

In accordance with the Taxonomy Regulation, the taxonomy alignment of taxonomy-eligible economic activities was assessed on the basis of the following requirements:

• Compliance of the associated economic activity with the technical screening criteria for a substantial contribution

• Compliance of the associated economic activity with the technical screening criteria for the prevention of significant harm to one or more of the environmental objectives (do-no-significant-harm or DNSH criteria)

• Compliance with minimum safeguards

Compliance with substantial contribution criteria

The KION Group assessed the potential substantial contribution for each taxonomy-eligible economic activity at either product or activity level. This established that activities ‘3.2 Manufacture of equipment for the production and use of hydrogen’ and ‘3.4 Manufacture of batteries’ meet the criteria for a substantial contribution to climate change mitigation. The activity ‘5.1 Repair, refurbishment, and remanufacturing’ meets the criteria in terms of the transition to a circular economy objective.

With respect to economic activity ‘5.1 Repair, refurbishment, and remanufacturing’, assessment of the substantial contribution criteria focused on service contracts and waste management. The assessment was based on a representative sample of service contracts from the Industrial Trucks & Services and Supply Chain Solutions segments. The review of service orders concluded that these activities fulfilled the required criteria. The waste management processes were assessed separately, with a focus on refurbishment and repair activities. In the Industrial Trucks & Services segment, the analysis centered on the waste management plans of the refurbishment sites. Repair activities were deemed not to be applicable since the waste from repairs is primarily disposed of at customer sites.

The taxonomy alignment of the manufacture of selected electric trucks (e-trucks) was also assessed. This is one of the KION Group’s most significant economic activities in relation to activity ‘3.6 Manufacture of other low-carbon technologies’ under the CCM environmental objective.

A specific truck model was identified as potentially making a substantial contribution to the reduction of GHG emissions. This model represents the only available technology solution in its power range currently on the market that enables the electrification of outdoor logistics handling.

The KION Group also completed a carbon footprint analysis based on the ISO 14067 standard in accordance with the relevant requirements. However, this was not verified by a third party and therefore did not meet the requirements of the criteria.

The remaining economic activities ‘3.10 Manufacture of hydrogen’, ‘6.5 Transport by motorbikes, passenger cars, and light commercial vehicles’, ‘7.7 Acquisition and ownership of buildings’, ‘4.1 Provision of IT/OT data-driven solutions’, ‘5.2 Sale of spare parts’, ‘5.4 Sale of second-hand goods’, and ‘5.5 Product-as-a-service and other circular use- and result-oriented service models’ did not currently meet the substantial contribution criteria.

Compliance with DNSH criteria

The KION Group also assessed the DNSH criteria, which are designed to ensure that the risk of significant harm to another environmental objective from individual economic activities is avoided.

An assessment of climate risk and vulnerability was carried out in line with Appendix A of Annex 1 to Delegated Regulation (EU) 2021/2139 in order to determine whether the Group’s economic activities do no significant harm to the environmental objective of climate change adaptation. The focus was on KION Group sites where taxonomy-eligible activities related to the core business are performed. Overall, no material climate-related physical risks were identified.

To review the other overarching DNSH criteria, workshops were held with HSE managers of the Operating Units in relation to the KION Group’s affected economic activities. Compliance with the DNSH criteria is ensured primarily by employing established environmental management systems that adhere to ISO 14001 standards. In addition, the KION Group sites relevant to taxonomy alignment were analyzed with respect to their proximity to biodiversity-sensitive areas. The base data for this assessment was provided by the European Environmental Agency’s Natura 2000 Network Viewer. The analysis found that none of the KION Group sites where taxonomy-eligible economic activities related to the environmental objective of climate change mitigation take place are located in or near these sensitive areas. The assessment of the DNSH criteria in accordance with Appendices B and D of Annex 1 to Delegated Regulation (EU) 2021/2139 therefore concluded that the aforementioned activities and the associated sites fulfill these criteria.

In the reporting year, the KION Group also investigated whether its activities fulfill the DNSH criteria with regard to the environmental objective of transition to a circular economy (CE). For activity CE 5.1, the assessment considered repair, refurbishment, and remanufacturing activities separately. With respect to the refurbishment activities, the analysis evaluated selected refurbishment centers, which were confirmed to comply with the criteria set out in Appendix B, since they assess and track water-related impacts in a dedicated register as part of the ISO 14001 certification process. The criteria in Appendix B were deemed not to be applicable to repair activities in either segment, since repairs (and the relevant water-related impacts) mainly occur at customer sites. The criteria set out in Appendix D are not applicable to activity CE 5.1 and were therefore not considered. DNSH requirements related to the CCM objective are also not applicable with respect to the KION Group’s CE ‘5.1 Repair, refurbishment, and remanufacturing’ activity as there is no on-site generation of heating or cooling, nor any cogeneration, including power generation.

The DNSH criteria for pollution prevention and control outlined in Appendix C of Annex 1 to Delegated Regulation (EU) 2021/2139 require that economic activities do not lead to the manufacture, placing on the market, or use of restricted substances subject to current European legislation on chemicals, or of other groups of substances (as defined under point (f)) in Appendix C. Due to the European Commission’s amendments to Appendix C within Delegated Regulation (EU) 2023/2485, the requirements under point (f) are currently not fulfilled for the relevant activities. With respect to activity CE 5.1, only the labor portion of the repair activities fulfilled the criteria but the materials used in the repairs did not. This distinction was only possible for the Industrial Trucks & Services segment. Repair activities in the Supply Chain Solutions segment therefore have to be considered in total and are considered not taxonomy-aligned. Overall, only a clearly defined portion of activity CE 5.1 currently fulfills the DNSH criteria set out in Appendix C, while all other potentially taxonomy-aligned economic activities do not fulfill these criteria and are therefore shown as taxonomy-eligible but not taxonomy-aligned.

With regard to the DNSH requirements in relation to the environmental objective of transition to a circular economy, assessment is focused on reusability and the use of secondary raw materials, design for greater durability and recyclability, and the provision of information on materials throughout the lifecycle of the manufactured products. Fulfillment of these requirements was assessed and found to be met. For example, the KION Group is legally obliged to ensure that batteries can be returned and recycled. Furthermore, the steel used in industrial trucks can be easily recycled, meaning that a high proportion of this material can be reused in line with the principles of the circular economy.

Compliance with minimum safeguards

The Taxonomy Regulation requires undertakings to implement processes that ensure compliance with the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles (UNGP) on Business and Human Rights, the ten fundamental conventions of the International Labour Organization, and the International Bill of Human Rights. These minimum safeguards primarily cover human rights, bribery and corruption, fair competition, taxation, and science, technology, and innovation. To ensure compliance with these minimum safeguards, the KION Group has established suitable processes for carrying out due diligence and assessing risk and is implementing groupwide guidelines and policies. The KION Group gives due consideration to the main areas covered by the minimum safeguards when evaluating taxonomy alignment, guided by the UN Guiding Principles on Business and Human Rights. The focus is on processes to minimize, avoid, monitor, and manage risks. The KION Group also verified that, in the event of any substantiated violations in the aforementioned areas during the reporting year, appropriate remediation measures were implemented.

With respect to human rights, the KION Group has an established Human rights assessment and due diligence process (HRDD).

Calculation of key figures for the EU taxonomy

The collection of revenue, capital expenditure (CapEx), and operating expenditure (OpEx) data was carried out in accordance with the Delegated Regulation (EU) 2021/2178 on Article 8 of the Taxonomy Regulation, with reference to the guidance on applying Article 8 of the Taxonomy Regulation.

The subsidiaries’ financial reporting was used as the basis for collecting the taxonomy-relevant data, which was validated and consolidated centrally. Where no revenue, CapEx, or OpEx was reported for a particular economic activity, they were deemed as not being applicable to that economic activity within the scope of this data collection.

To determine the taxonomy-eligible and taxonomy-aligned proportion of consolidated revenue, the revenue from all eligible and aligned economic activities was calculated in relation to the KION Group’s total revenue. The taxonomy-eligible revenue was taken from financial accounting and internal reporting on the relevant taxonomy-eligible economic activities, while total revenue corresponds to the sum of the consolidated net revenue of all consolidated subsidiaries (see ‘consolidated income statement’ in the consolidated financial statements in this annual report; ESRS 1.123).

To determine the taxonomy-eligible and taxonomy-aligned proportion of capital expenditure, the capital expenditure in all eligible and aligned economic activities was calculated in relation to the KION Group’s total CapEx. The total CapEx corresponds to the sum of operational CapEx (see ‘Cash payments for purchase of non-current assets’ shown in the consolidated statement of cash flows; ESRS 1.123), in the additions to leased assets, rental assets, and right-of-use assets in other property, plant and equipment, primarily from procurement leases for buildings and company cars (see notes to the consolidated financial statements, notes [16], [17], and [18]; ESRS 1.123).

To determine the taxonomy-eligible and taxonomy-aligned proportion of OpEx, the relevant operating expenditure for all eligible and aligned economic activities was calculated in relation to the total operating expenditure of the KION Group in accordance with the Delegated Act supplementing Article 8 of the Taxonomy Regulation. Total OpEx corresponds to the sum of all relevant non-capitalized expenditure related to research and development, building renovation, short-term leases, maintenance and repair, and other direct expenses related to the day-to-day maintenance of property, plant, and equipment by the Group or by third parties to which activities are outsourced that are necessary to ensure the continuous and effective functioning of these assets.

Economic activities CCM 3.4 and CE 4.1 are reported separately due to their relevance and contribution to the KION Group’s revenue. Intragroup revenue and revenue generated from external customers are reported as a total amount for economic activity CCM 3.4. The intragroup revenue attributable to CCM 3.4 is therefore deducted from economic activity CCM 3.6 in order to avoid counting it twice when checking for taxonomy eligibility. Total revenue is also shown for activity CE 4.1, with the revenue from intragroup supply relationships deducted from the total taxonomy-non-eligible consolidated revenue, as this proportion is not allocated to any other economic activity.

Additionally, clear definitions and processes were established to ensure consistent allocation of financial accounting data to the relevant activities and to prevent double counting of revenue, CapEx, and OpEx from economic activities that contribute to more than one economic activity.

Taxonomy-eligible and taxonomy-aligned activities are therefore allocated either to the environmental objective of climate change mitigation or to the environmental objective of transition to a circular economy, which further reduces the risk of double counting.

The following provides an overview of taxonomy-eligible and taxonomy-aligned activities with regard to the financial metrics revenue, CapEx, and OpEx for 2025 and the comparative period of 2024.

The percentage of taxonomy eligibility in the financial metrics revenue, CapEx, and OpEx in accordance with the EU taxonomy did not change significantly year on year. Despite the stricter DNSH criteria following the changes to Appendix C (paragraph f) in Annex I to Delegated Regulation (EU) 2023/2486 with regard to the environmental objectives, a clearly defined part – under the new environmental objective of transition to a circular economy – of economic activity CE 5.1 was again classified as taxonomy-aligned in 2025.

Further notes on the EU Taxonomy Regulation

The KION Group firmly believes that the Group and its portfolio, consisting of efficient products and solutions in both segments, can make a major contribution to the objectives defined in the EU regulation. The annexes to the EU Taxonomy Regulation do not provide a classification for some economic activities, or do not provide a sufficiently detailed description of them, which means it is not currently possible to adequately assess the taxonomy eligibility and/or alignment of the portfolio.

The sustainability strategy complies with the other specifications and objectives of the Taxonomy Regulation, which are incorporated into the Group’s activities. The detailed descriptions of the activities contained within the relevant chapters of this report provide an overview of the KION Group’s commitment in the area of sustainability and its performance.