Sustainability strategy

The KION Strategy 2020 remains the guiding framework for the KION Group. It aims to achieve growth, profitability, efficient capital investment and increased robustness in economic downturns. The sustainability activities within the Group support this strategy, which is why sustainable and responsible business practices are a core principle of the KION Group’s activities. The Company and operating units have always strived to balance environmental, economic and social considerations in its activities. In 2016 this strategy was embedded even more deeply in the Company to give Group-wide control of sustainability factors through corresponding structures. These new structures also gave rise to a Group-wide internal reporting system, which is a fundamental basis for managing and continuously improving KION’s sustainability activities. It also meets the requirements of a transparent reporting system.

At the heart of its sustainability strategy (> Figure 5) is the aspiration to take responsibility, and in doing so promote the Company’s sustainable development. With clear aims, efficient structures and processes, and an effective reporting system it intends to attain a leading position in its industry in terms of sustainable business practices. Consequently, sustainability should be integral to the way its employees go about their work, combined with the aspiration to continuously improve. To achieve this, it intends to further enable and encourage its employees to act sustainably. Further, the KION Group intends to promote sustainability along its entire value chain, in close collaboration with its suppliers and customers; the KION Group will therefore continue to integrate environmental and social considerations into its business processes − and contribute lasting value to its Company, customers and society in the process.

The sustainability strategy is guided by the principle of ‘We are moved by sustainability’, brings together the core measures and sets out its approach in each of its four focus areas: Performance, Products, Processes, and People.

Figure 5 KION Group sustainability strategy

Four guiding principles drive implementation

To implement its sustainability strategy, the KION Group established four guiding principles that set out the guidelines for its sustainable approach:

1. We embody sustainability – it is an integral part of our activities, and we strive to make further improvements every day.
2. We champion cost-effective sustainability across the entire value chain – together with business partners and suppliers, we offer customers efficient solutions which also assist them in their sustainability activities.
3. We pursue clear sustainability goals – and achieve them through effective structures, efficient processes and transparent reporting.
4. We enable our employees to drive innovation, which increases our Company’s sustainability performance.

We integrate sustainability aspects into our business processes based on these principles, thereby adding long-term value for our Company, our customers and society.

Three-step implementation plan for the Group-wide sustainability management system

Since September 2015 the Sustainability Management head office department has managed and coordinated the KION Group’s and operating units’ sustainability activities. To embed the sustainability management system Group-wide, ensure its targeted management and thus make sustainability aspects a visible part of the way it manages its Company, the KION Group takes a three-step approach.

In the first step, in 2016 it produced a Group-wide sustainability strategy and formed the basis for the Group-wide sustainability reporting system. It incorporated both the expectations of its top management team as well as those of a highly diverse range of stakeholders here. At the same time it leveraged the experience gained by Linde Material Handling, as it had already pioneered sustainability within the Group, developing a brand-specific sustainability strategy and establishing the requisite management and reporting structures between 2014 and 2016. The KION Group is now following this proven path at Group level and has defined the material action fields based on a materiality analysis (see Key challenges for the KION Group). This resulted in the definition of action fields at Group level with clearly assigned responsibilities within the organisation, and an initial set of objectives. The Company is now establishing Group-wide governance structures at its operating units.

Currently, it is also in the process of rolling out the second implementation step: by the end of 2017 it will have defined sustainability KPIs (key performance indicators) and established the required data management system. This will form the basis of its sustainability management system, including its first comprehensive Group-wide sustainability programme which encompasses all operating units.

The third step focuses on internal and external communication. Its regular sustainability report, which meets the requirements of current statutory regulations, forms the basis of its external communication activities. It also aims to position the KION Group appropriately in the relevant sustainability ratings and rankings. In terms of internal communication, which means informing employees and involving them in the Company’s sustainability activities, KION intends to embed its sustainability activities on a broad basis within its Group.

Key challenges for the KION Group

Materiality as the basis for strategy development

The materiality analysis performed by Linde Material Handling EMEA at the start of 2015 formed the basis for the development of the KION sustainability strategy (> Figure 6). The management team’s assumptions at the time, together with the stakeholders’ expectations, were reviewed with regard to the KION Group and very largely adopted. This also gave rise to a systematic approach at Group level, which addresses and prioritises the material challenges facing the Group. The units with the highest overall relevance are also the focus of the KION Group’s sustainability management (> Table 2).

Figure 6 Materiality analysis findings

For further information, hover the mouse pointer over the points.

It plans to update and expand on its materiality analysis in 2018 to include its operating units. In doing so, it plans to take into account both its acquisition of Dematic as well as the stronger regional focus of its sustainability programme within its operating units.

Comprehensive sustainability programme with 14 action fields

The 14 action fields which the Group defined, based on the findings of its materiality analysis, form the structure of its sustainability programme (> Figure 7). By the end of 2017 it will set out its sustainability programme in more detail and roll it out in its approved form. At the same time it will also formulate the material KPIs for each action field by which it will manage sustainability within the Group, and which it will gradually communicate publicly, starting with this report. Behind each action field lies a specific programme with targets, measures and KPIs to develop the Group’s sustainability activities on an ongoing basis (> Table 3). Responsibility for implementing these measures lies with the person in charge of the action field. Typically, this is the head of the department, as the individual also responsible for integrating sustainability aspects into the processes. The sustainability objectives set out a minimum standard which is binding on the entire KION Group. Individual units may achieve higher standards in their sustainability activities or supplement them as required.

Figure 7 KION sustainability strategy action fields

Table 3Main objectives