Fresenius : 2021 TCFD Index (PDF, 119 KB)

2021 TCFD Index

Using the disclosure recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), the table below provides information on climate-related risks and opportunities. The table is divided into four key areas in line with the four core categories governance, strategy, risk management, as well as metrics and targets.

GovernanceDisclose the organization's governance around climate-related risks and opportunities.

Information published:

Sustainability, as well as climate-related topics are the responsibility of the CEO of Fresenius Management SE. Fresenius Management SE is the general partner of Fresenius SE & Co. KGaA. The Group Management Board is regularly informed about sustainability issues, including climate change by the Investor Relations & Sustainability department of Fresenius SE & Co. KGaA. The Management Board and the Supervisory Board review the progress and the results of the sustainability management, which are then published in the separate Group Non-financial Report. The Supervisory Board is supported in this process by the auditor's limited assurance engagement. The Audit Committee has a special role in reviewing the Group Non-financial Report. The Supervisory Board as a whole is responsible for monitoring the Company's sustainability performance, which is monitoreda) Describe the Board's oversight of climate-related risks and opportunities.

through various sustainability KPIs and targets.

At Fresenius Medical Care (FME) the highest governing body for sustainability activities, including climate-related issues, is the Sustainability Decision Board. Further information is included in the TCFD Index 2021 of Fresenius Medical Care.

Sustainability risk management, please see our Group Non-financial Report - Sustainability Risks (page 116 f.)

Group Sustainability Governance Structure, please see our Group Non-financial Report - Our Sustainability Organization (pages 118 ff.)

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfdThe identification and assessment of potential sustainability risks (non-financial risks) initially takes place at both the Group level and in the four business segments via the existing risk management system. Sustainability risks are assessed that are already covered by the existing risk catalogs and risk reporting of the Fresenius Group. In an additional step, potential sustainability risks are discussed on a quarterly basis at Group level by the corporate functions Risk Management & Internal Control System, Business Integrity, and Investor Relations & Sustainability of Fresenius SE & Co. KGaA, and supplemented if necessary.

In February 2022, the Management Board of Fresenius Management SE has implemented a climate target, complementing the existing sustainability goals and programs for the Fresenius Group. Fresenius Group aims to achieve climate neutrality by 2040 and to reduce 50% of absolute scope 1 and scope 2 emissions by 2030 compared to 2020. We will continuously assess scope 3 emission impacts for inclusion in our targets.

b) Describe management's role in assessing and managing climate-related risks and opportunities

The Compensation System 2021+ also takes into account non-financial performance targets. These targets are derived from the Company's materiality analysis and relate to sustainability areas of importance to Fresenius, such as quality/patients, employees, innovation/digitalization, compliance and environment. The design of the ESG targets is aimed at quantifying the improvement in ESG performance from 2023 onwards, with quantitative targets to be incorporated into the Long-Term Incentive from this date onwards. As an overarching strategic goal, Fresenius intends to significantly improve its ESG performance over the next ten (10) years, based on reported and audited metrics that reflect the Company's sustainability strategy.

For Fresenius Medical Care, see their own 2021 TCFD Index.

Sustainability risk management, please see our Group Non-financial Report 2021- Sustainability Risks (page 116 f.)

Our Sustainability Goals and Programs, please see our Group Non-financial Report 2021 (page 117)

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfd

Compensation Report 2021, part of the Fresenius Group Annual Report (pages 234 ff.)

Strategy

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning

Information published:

In the reporting period, we analyzed potential sustainability risks in the areas of climate change and water scarcity. We did not identify any material risks to our business model in either area. Overall, we did not identify any material non-financial risks, taking into account risk mitigating measures (net risk assessment), related to our own business activities, business relationships, products, or services that are very likely to have an adverse effect on the non-financial aspects mentioned above or on our business operations.

For an overview of risks which could have an impact on our business operations, please see our Opportunities and Risks Report in the Annual Report 2021.

Extreme weather events:

a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

In the hospital sector, there are legal requirements for how care is to be organized in the event of an emergency. Therefore, hospitals and health care facilities have dedicated emergency plans to respond immediately to incidents that might be critical for patients. These encompass, among others, evacuation plans, emergency systems in case of interruption of power or water supply, or plans to respond to impacts on local infrastructure, like flooding. Emergency power generators ensure that operations or vital therapies, such as artificial respiration, can continue even in the event of a power failure. In 2021, incidents occurred in Germany and Spain, such as extreme weather events, that impacted the respective local hospital infrastructure and patient care. Patients were not harmed by these events. Incidents were assessed, together with the local authorities, and necessary evacuation measures or remediation measures were implemented.

Fresenius Group Annual Report 2021 - Opportunities and Risk Report (pages 95 ff.)

Sustainability risk management, please see our Group Non-financial Report - Sustainability Risks (page 116 f.)

Our Sustainability Goals and Programs, please see our Group Non-financial Report 2021 (page 117)

Patient support in crisis and emergency situations:https://annualreport.fresenius.com/2021/sustainability-report/well-being-of-the-patient/access-to-health-care-and-medicine/

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfd

b) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning

In the future, we intend to record and assess sustainability risks across the Group in a more harmonized approach together with financial, legal, and compliance risks. This will enable us to achieve an integrated view of our impact on the issues (inside-out perspective) on the one hand and the impact of the issues on Fresenius (outside-in) on the other. This allows us to assess their short-, medium- or long-term financial impacts as well as their impacts on society and the environment. In the area of human rights, we have already started to do this.

In February 2022, the Management Board of Fresenius Management SE has implemented a climate target, complementing the existing sustainability goals and programs for the Fresenius Group. Fresenius Group aims to achieve climate neutrality by 2040 and to reduce 50% of absolute scope 1 and scope 2 emissions by 2030 compared to 2020. We will continuously assess scope 3 emission impacts for inclusion in our targets.

Sustainability risk management, please see our Group Non-financial Report 2021 - Sustainability Risks (page 116 f.)

By enhancing the consistency and comparability of our climate change information, we help our customers, investors and financial analysts to better evaluate our climate change performance and carbon footprint. Transparency around climate change data also plays an increasing role for other relevant stakeholders.

Thus, we are convinced that transparency on our initiatives, the resilience of the health care industry as well as the anticipation of shifts in market and consumer preferences provides for a competitive advantage, if managed responsibly.

c) Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

To better understand the impact of climate change into our business strategy of the four business segments, the Management Board of Fresenius decided, to evaluate relevant strategic KPIs for the material matters Social, Compliance, Employees, Environment, and Human Rights and define a strategy per business segment for improving and reporting these KPIs. This ambition translates into the structure of the Compensation System 2021+.

Ambition: In February 2022, the Management Board of Fresenius Management SE has implemented a climate target, complementing the existing sustainability goals and programs for the Fresenius Group. Fresenius Group aims to achieve climate neutrality by 2040 and to reduce 50% of absolute scope 1 and scope 2 emissions by 2030 compared to 2020. We will continuously assess scope 3 emission impacts for inclusion in our targets.

Our Sustainability Goals and Programs, please see our Group Non-financial Report 2021 (page 117)

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfd

Risk Management

Disclose how the organization identifies, assesses, and manages climate-related risks.

Information published:

The identification and assessment of potential sustainability risks (non-financial risks) initially takes place at both the Group level and in the four business segments via the existing risk management system. Sustainability risks are assessed that are already covered by the existing risk catalogs and risk reporting of the Fresenius Group. In an additional step, potential sustainability risks are discussed on a quarterly basis at Group level by the corporate functions Risk Management & Internal Control System, Business Integrity and Investor Relations & Sustainability of Fresenius SE & Co. KGaA, and supplemented if necessary.

Opportunities and Risk Report, please see Fresenius Group Annual Report 2021 (pages 95 ff.)

a) Describe the organization's processes for identifying and assessing climate-related risks.

Sustainability risks, please see our Group Non-financial Report - Sustainability Risks (page 116 f.)

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfdIn the future, we intend to record and assess sustainability risks across the Group in a more harmonized approach together with financial, legal, and compliance risks. This will enable us to achieve an integrated view of our impact on the issues (inside-out perspective) on the one hand and the impact of the issues on Fresenius (outside-in) on the other. This allows us to assess their short-, medium- or long-term financial impacts as well as their impacts on society and the environment. In the area of human rights, we have already started to do this.

In 2021, business segments performed water-stress assessmens of their operations:

Fresenius Medical Care regularly identifies and evaluates environmental risks as part of its enterprise risk management. In 2021, Fresenius Medical Care used Task Force on Climate-related Financial Disclosures (TCFD) standards as guidelines in this process for the first time. Additional risk examples were added to the risk catalog and specific b) Describe the organization's processes for managing climate- assessments were performed, for example concerning water stress and climate change vulnerability.

related risks

Opportunities and Risk Report, please see Fresenius Group Annual Report 2021 (pages 95 ff.)

Sustainability risks, please see our Group Non-financial Report 2021 - Sustainability Risks (page 116 f.)

Water management in our business segments, please see our Group Non-financial Report 2021 - Water Management (pages 204 ff.)

Water availability at Fresenius Kabi's production sites is important to ensure business continuity. The business segment analyzes the water situation using the World Resources Institute's Aqueduct Water Risk Atlas, which contains information on current and future water risks at specific locations. Fresenius Kabi has identified manufacturing sites that are in areas with extremely high or high risk of water scarcity. At these sites, efficient water man-agement is especially important to ensure water availability for production and to prevent negative impact on the local water situation as far as possible.

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfd

Sustainability risks, including climate-related risks, are already fully integrated into our companies risk management through the corporate functions Risk Management & Internal Control System, Business Integrity and Investor Relations & Sustainability of Fresenius SE & Co. KGaA.

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management.

Metrics and targets

In the future, we intend to record and assess sustainability risks across the Group in a more harmonized approach together with financial, legal, and compliance risks. This will enable us to achieve an integrated view of our impact on the issues (inside-out perspective) on the one hand and the impact of the issues on Fresenius (outside-in) on the other. This allows us to assess their short-, medium- or long-term financial impacts as well as their impacts on society and the environment. In the area of human rights, we have already started to do this.

Opportunities and Risk Report, please see Fresenius Group Annual Report 2021 (pages 95 ff.)

Sustainability risks, please see our Group Non-financial Report - Sustainability Risks (page 116 f.)

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfd

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities

Information published:

We measure and assess several key performance indicators as part of our environmental management. This includes water and energy consumption, facilities in water-stressed areas, Scope 1 and 2 greenhouse gas emissions, production sites and health care facilities with ISO 14001 as well as ISO 50001 certification, and resource-friendly products. We calculate our Scope 1 and 2 GHG emissions following the methodology of the Greenhouse Gas Protocol, using the latest version from the UK Department for Environment, Food and Rural Affairs (DEFRA). We also use the emissiona) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

factors of the International Energy Agency (IEA) for electricity consumption. We additionally use these emission factors to calculate the indirect emissions from electricity.

Fresenius Group Non-financial Report 2021, please see section "Environment" (pages 199 ff.)

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfdWe currently disclose Scope 1 and Scope 2 greenhouse gas emissions. As part of our ambition to improve our sustainability performance, we will also quantify and disclose Scope 3 emissions. In February 2022, a climate target was set by the Management Board of Fresenius Group.

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks

Sustainability risks, including climate-related risks will be integrated into our company-wide risk management as described before. We are carefully monitoring regulatory developments and market trends. In 2021, we did not identify any material non-financial risks, taking into account risk mitigating measures (net risk assessment), related to our own business activities, business relationships, products or services that are very likely to have an adverse effect on the material non-financial aspects or on our business operations. The Group Management Report in the Group Annual Report 2021 on pages 95 ff. contains further information on opportunities and risks as well as a detailed presentation of risk management.

Fresenius Group Non-financial Report 2021, please see section "Climate Protection - Energy and Emissions" (pages 211-215)

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfd

In February 2022, the Management Board of Fresenius Management SE has implemented a climate target, complementing the existing sustainability goals and programs for the Fresenius Group. Fresenius Group aims to achieve climate neutrality by 2040 and to reduce 50% of absolute scope 1 and scope 2 emissions by 2030 compared to 2020. We will continuously assess scope 3 emission impacts for inclusion in our targets.

Climate Target, see Our Sustainability Goals and Programs, Group Non-financial Report 2021 (page 117)

c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

2021 TCFD Index Fresenius Medical Care:https://www.freseniusmedicalcare.com/en/tcfd