2021 Edition
Sustainability
Report
Contents
3 CEO welcome message
4 Our business
5 Embracing sustainability
8 Materiality approach and progress
12 Governance
12 Business integrity
18 Business preparedness, resilience and disaster response
20 Data privacy and security
21 Responsible communication
24 Value Chain
24 Customer relations and satisfaction
25 Product and service innovation
26 Supplier engagement
27 Sustainable supply chain
30 Social
30 Employee satisfaction and retention
31 Employee development
34 Occupational health and safety
37 Human rights, diversity and equal opportunities
40 Environment
40 CO2 / Greenhouse gas emissions (GHG)
46 Waste management and recycling
47 Efficient use of resources
49 Management of dangerous goods
50 Community engagement
52 Reporting history, scope and basis
54 Performance data
57 Summary of targets and progress across all issues
62 GRI index
71 UN Global Compact index 2021 - Communication on Progress
72 Sustainability Assurance Letter
Welcome message
Dear Readers,
The challenges of the past year and the events of the recent months have remind-ed us that the future of our planet and society is in no way set in stone. It is in our hands to shape this future for generations to come. The pandemic has demonstrated that mankind can achieve the extraordi-nary when science and technology are used for the good of all - and when all stakeholders involved take their share of responsibility. Whether it is business, science, politics, or society, we need to take action and put socio-economic deve-lopment at the forefront of our actions.
Now, one could think that in the current situation, sustainability, climate change, or decarbonisation are not a primary concern. Quite the contrary: At Kuehne+Nagel, we believe that they can be a powerful accelerator to create the much-desired "new normal". Using the data we collect and applying the techno-logy we create, we cannot only develop solutions to address climate change, we can innovate for a more sustainable future in many aspects. But we need to combine investment with action. And we all need to use this momentum to raise the bar.
At Kuehne+Nagel, we have committed to the Science-Based Target initiative (SBTi) and transition to a zero-carbon business model while facilitating a zero-carbon future for our customers. With data-driven insights, design and optimisation of sup-ply chains, alternative transport modes, routes and carrier options as well as low carbon fuel solutions, we can actively ad-dress climate change in our industry and be a responsible partner for customers and suppliers.
Based on the responsibility towards our customers and towards society, we set up an immediate and effective response to the global demand for vaccine supply and distribution as well as tailor-made solu-tions to manoeuvre through the ongoing supply chain disruptions. This naturally implied a significant switch from sea to air freight, increasing CO2 emissions. Never-theless, we stay committed to our decar-bonisation goals. We have made major efforts to invest in sustainable aviation fuel (SAF) and joined alliances to drive the deployment of alternative fuels. In parallel, we managed to transition from 21% to 79% renewable energies on our sites globally.
Despite the pandemic and challenging market environment, we have proven resilience in our business model and our way of working. While offering the best for our customers, we care for our colleagues and communities. Covid has pushed ahead with the establishment of a new social pact. With flexible working hours, remote working options, a clear commit-ment to a diverse and inclusive workforce, and the empowerment of the communities we operate in, we create value beyond our line of business. Fostering global trade, we have been carefully analysing the trends of tomorrow and as a result, con-ducted several strategic acquisitions that will help us better manage future supply chain demands.
Sustainability is manifold and at Kuehne+Nagel, we take responsibility for future generations, colleagues, the ecosystem, and partners likewise. Join us in supporting this journey!
Dr. Detlef Trefzger CEO
4
Our business
Integrated management system
Customer requirements
(needs and expectations)
The Kuehne+Nagel Group strives on a daily basis to connect people and goods through innovative and sustainable busi-ness solutions. Through an integrated management approach, we are adding value to our external and internal cus-tomers; contributing to their success in
Integrated Management System
managing business risks and increasing efficiency. The diagram below shows the Kuehne+Nagel Business Unit and Func-tional Unit Process map, supported by Kuehne+Nagel's integrated management system.
Leadership governance
Strategy, supplier management, KPIs, risk management, improvement, etc.
Core product & services
Support governance
(Information Technology, Human Resources, Finance, QSHE, Sales & Marketing, Legal, Compliance, Communication, Procurement,
Sustainability)
Customer satisfaction
(results and improvements)
5
Embracing sustainability
Strategy
Kuehne+Nagel's sustainability programme | ■ | Ensure the health and safety of our |
embraces the elements of environmental, | employees, | |
social and governance topics. These can be | ■ | Proactively address climate change, |
summarised with the following commitments: | ■ | Minimise the impact of our services on |
the environment, | ||
■ | Defined sustainability targets for | |
corporate and regional management, | ||
■ | Give back to local communities. |
■
Implement global standards and frameworks,
■ Keep the highest levels of ethics and compliance practices,
Corporate Governance model
Board of Directors
Receives updates and approves sustainability strategy. Integrates sustainability in overall business strategy
Management Board
Responsible for and implementation of sustainability strategy
Global Head of Sustainability
Provides overall strategic direction
Shared value ambitions by the business
Sustainability Core Panel
Supports Global Head of Sustainability with overall strategic direction*
Sustainability Sounding Board
Acts as a sounding board to the Core Panel. Members are champions and sponsors of sustainability throughout the company**
External policies and frameworks
UN Global Compact - Paris Agreement COP 21 - ISO - IMO - ILO - SBTi - SASB - US Federal Sentencing Guidelines - UK Bribery Act - FCPA
* The Core Panel consists of the Core Products and Services: Sea Logistics, Air Logistics, Road Logistics, Contract + Integrated Logistics ** The Sounding Board consists of the Core Products and Services and the Support Governance (see Integrated Management System)
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Kuehne + Nagel International AG published this content on 03 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 May 2022 03:32:06 UTC.