We are convinced that a consistent path towards sustainability will help us to tap new growth potential in the future.
On the one hand, we are continuously working on the efficiency, durability and environmental compatibility of our products and services. On the other hand, we are gradually expanding the sustainability of our own operating and value creation processes.
Sustainability at Krones
Sustainable business strategy
The sustainability goals of the Krones Group are integrated into our corporate strategy. Our new corporate vision, “Solutions beyond tomorrow”, shows how sustainability drives our company.
Sustainability management within the Krones Group is steered and coordinated by a central Sustainability Team. It serves as the main body for sustainability strategy, controlling and reporting along the entire value chain. At the heart of the team’s work is its cooperation with the departments and experts responsible for material sustainability topics. The Sustainability Team is part of Corporate Research and Development and thus reports to the Executive Board member responsible for International Operations and Services. Parallel to that, the Sustainability Team and Sustainability Steering Board report directly to the CEO.
Sustainability Executive Reviews
Since the end of 2022, the Executive Board has held coordination meetings on sustainability topics at six-week intervals so as to bring the management of our sustainability objectives into the top tier of company leadership. In these meetings, the key sustainability performance indicators are tracked and strategic decisions made regarding the company´s sustainable development.
Executive Board remuneration linked to sustainability
Sustainability aspects are included in the policies that govern Executive Board remuneration. As of the financial year 2022, Scope 1 and Scope 2 greenhouse gas emissions are part of the calculation of long-term incentives (LTI). ESG targets will be successively introduced in the long-term incentive starting in fiscal 2022.
Non-financial risk analysis
Risks are reported and assessed quarterly within the group-wide risk management processes carried out by Finance. Under the concept of double materiality, the “outside-in” risks to the company that are identified in this process are then assessed by the Sustainability Team for potential negative impacts that the company can have on sustainability topics (inside-out).
The relevance of our sustainability topics is analyzed according to the concept of double materiality. In the financial year 2022, the Krones Group's materiality matrix was revised and approved by the Executive Board.