KION : Sustainability Insights 2023

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Sustainability

Insights

2023 Complementary to non-financial report 2023

We keep the world moving.

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Disclaimer

The KION Group enhanced its approach for sustain­ ability reporting in 2023 by launching two individual publications that go hand in hand with each other. The Sustainability Insights 2023 and the non-financial report (NfR) 2023 were developed in tandem to provide a comprehensive reporting on the KION Group's sustainability activities during fiscal year 2023.

In 2023, the KION Group transitioned from the sustainability report to the non-financial report 2023 in order to prepare for the Corporate Sustainability Reporting Directive (CSRD), including its incorporation into the KION Group annual report in the upcoming year. The KION Group 2023 non-financial report (NfR) meets the requirements of sections 315b and 315c in conjunction with 289c to 289e of the German Commercial Code (Handelsgesetzbuch, HGB) and

the EU Taxonomy Regulation.

This KION Group Sustainability Insights 2023 builds upon the material reporting provided in the NfR and goes beyond regulatory requirements. It provides further facts and figures to professional stakeholders such as customers and rating agencies as well as public interest groups and, last but not least, to the KION Group employees.

Both reports show the sustainability progress of KION GROUP AG and its consolidated subsidiaries (collectively: the 'KION Group' or the 'Group') during the reporting period from January 1 to December 31, 2023 (fiscal year 2023) ( About the Sustainability Insights). The non-financial report as well as the Sustainability Insights are created with reference to the standards of the Global Reporting Initiative (GRI) and aligned with the requirements of the Sustainability Accounting Standards Board (SASB) and the recom­ mendations of the Task Force on Climate-related Financial Disclosures (TCFD). The corresponding indices can be found in the Annex.

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Selected highlight figures

€11.4 bn		€314.4 m		42,325
Revenue1		Net income1		Employees2

5.2		91.1%		14,940 kt
Lost-time Injury		Share of electric		CO2e GHG emissions
Frequency Rate3		powered­	vehicles sold		Scope 1, 2, 34
(LTIFR)		(ITS segment)

1  For further information, please refer to the 2023 annual report, including the consolidated financial statements (consolidated income statement) and management report (research and development).

2  Full-time equivalents (FTE) as at balance sheet date 31/12/.

3  Occupational accidents of active employees with one or more working days lost per million hours worked.

4  Greenhouse gas emissions in thousand tons CO2 equivalents (CO2e), scope 2 market-based, scope 1 and 3 location-based (details on methodology in respective report section). Fiscal years 2021 and 2022 have been recalculated retrospectively considering further scope 3 categories (details in respective report section) as well as methodology and data base enhancements, e.g. by refined emission factors. Changes in scope 3 greenhouse gas emissions compared to reported values in the sustainability report 2022: for fiscal year 2021: +2.4% and fiscal year 2022: -1.4%.

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Valeria Jimena

Gargiulo

Chief People &

Sustainability

Officer (CPSO) of

KION GROUP AG

Foreword

Dear Ladies and Gentlemen,

As one of the global leaders in intralogistics, we embrace the enormous potential and particular respon­ sibility in the area of sustainability. At the KION Group, we act upon this responsibility: We commit to fully embedding sustainability into our core business. This is reflected in our KION 2027 strategy, where we have anchored sustainability as a strategic field of action. By pursuing our eight sustainability action fields within the three dimensions of People, Products and Processes, we promote the UN Sustainable Development Goals (SDGs) and contribute to addressing the global social and environmental challenges which we face today and in the future.

To ensure that sustainability criteria are deeply embedded in our decision-making, the KION Group has made it a priority at the highest level of the organization. Since May 2023, I have had the privilege of holding the role of Chief People & Sustainability Officer (CPSO) which has been newly established in the Executive Board. We focus on sustainably creating business value by capitalizing on positive impacts and opportunities as well as mitigating negative impacts and risks where possible. While every­ thing starts with the initial thoughts when designing products, we distinguish ourselves by thinking beyond our own operations: With our products, services and processes, we endeavor to equip our customers with highly efficient, sustainable products and solutions that enable them to achieve their sustainability goals.

Driving sustainable development as a people business Only with the full commitment of our people around the globe will we further develop into a sustainable business. All our initiatives revolve around them as the driving force. Ensuring our employees' health and safety is deeply embedded in our culture as well as manage­ ment and was underscored by the KION Group Board Occupational Health and Safety (OHS) award in 2023. This award recognizes initiatives that make a special contribution to the Group's safety culture. We have

set ourselves the goal of being one of the leading companies regarding OHS in the material handling and warehouse automation industry. In 2023, we made progress in our ambition of achieving zero accidents by reducing our accident frequency rate (LTIFR: Lost Time Injury Frequency Rate) from 5.9 to 5.2.

We promote a culture of diversity, equity, inclusion, and psychological safety while developing attractive career and development opportunities for our talents. Our corporate identity demands that we treat each other with the same respect, regardless of personal charac­ teristics such as gender, color, ethnic or social origin, age or religious beliefs. To further promote diversity and non-discrimination in the workspace, I am proud to share that KION GROUP AG signed the German initiative Charta der Vielfalt (Diversity Charter) in 2023. Our ambition is to be the employer of choice in the material handling industry.

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Striving for highly sustainable products and solutions design

While we offer fully electrified products and solutions in our Supply Chain Solutions (SCS) segment, the share of electric-powered vehicles sold to customers increased to 91.1 percent in the Industrial Trucks and Services (ITS) segment in 2023. As a result, we surpassed the

KION Group's strategic target of 90 percent share of electric-powered vehicles sold annually ahead of schedule. In 2023, we also intensified our activities for circularity and formed a strategic partnership with Li-Cycle Holdings Corp. to close the recycling loop for lithium-ion batteries that have reached the end of their life cycle.

In terms of product lifecycle assessments (LCA), we conducted LCAs for six truck series in 2023 and continued to pilot and conduct industry-pioneering lifecycle assessments for our supply chain solutions. Moving forward, we aim to strengthen synergies and collaboration­ between the ITS and SCS segments. We further embrace the cradle to cradle (C2C) concept in rethinking products in terms of material safety and recyclability with a pilot project in the SCS segment.

In the area of LCA and C2C certifications, we are about to fine-tune meaningful indicators and corresponding­ mid-term targets. In context of the upstream value chain, we also launched a new initiative for higher transparency­ in the supply chain in 2023. We aim to make data- driven sourcing decisions that prioritize environmental­ responsibility at scale and will extend the collaboration with our key suppliers in 2024.

Embedding sustainability in our business processes

In 2023, we strategically anchored the ambition of net-­ zero greenhouse gas emissions along our value chain (Scope 1, 2 and 3) by 2050 at the latest, with interim targets by 2030. KION GROUP AG officially committed to the Science Based Targets initiative (SBTi) and the goal of the Paris Agreement on climate change, which aims to limit global temperature rise to 1.5°C. For the according climate action, we revised our sustainable governance structure and introduced the Sustainability Council for a closer collaboration between the leaders of the eight sustainability action fields, the Operating Units and the central functions.

In 2023, the KION Group achieved once more the Gold medal in EcoVadis, which puts us in the top six percent of all rated companies in the manufacture of general- purpose machinery industry. The Group's subsidiaries, Linde Material Handling GmbH and STILL GmbH, have exceeded expectations by scoring the top-grade Platinum, while Dematic Corp. and KION South America Ltda. both successfully achieved the Gold rating for the first time. The outstanding performance has been further recognized with an MSCI ESG rating of AAA as of 2023, marking the first time the KION Group has achieved the top score, and ranks among the top ten percent in its industry (construction, farm machinery, and heavy trucks). We are also proud that the KION Group was admitted as a member in the S&P Global Sustainability­ Yearbook 2023 for the first time, based on the S&P Corporate Sustain­ ability Assessment 2022.

2023 was a pivotal year for all this progress towards sustainability, for the further development of our sustain­ ability strategy and also for our annual sustainability reporting approach. We achieved a successful early launch of the non-financial report 2023: Moving the publication from end of April to end of February marks a meaningful step forward in our commitment to sustain­ ability reporting and transparency in reference to the upcoming Corporate Sustainability Reporting Directive effective in 2024. In addition, we feature Sustainability Insights that provide a more comprehensive overview of the initiatives, measures and targets per sustainability action field and go beyond legal requirements in this newly established extended format.

In 2023, we paved the way for significant steps towards shaping our industry sustainably; in doing so, we demon­ strated agility and resilience. I am confident that based on this solid fundament, the KION Group will show in 2024 that sustainability is of unbeatable advantage for our employees, customers, shareholders, business partners, and the communities in which we operate.

Valeria Jimena Gargiulo

Chief People & Sustainability Officer (CPSO) of KION GROUP AG

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Contents - Sustainability management - People - Products - Processes - Annex

Contents

The Sustainability Insights is an interactive pdf file. Clicking on the section in the table of contents leads to the selected page.

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Sustainability management	08
Sustainability understanding	09
Sustainability in KION 2027 strategy	10
Sustainability strategy	10
Sustainability action fields	13
Strategic link to the Sustainable Development Goals	14

People	15
01	| Occupational health and safety	16
02	| Talent	21
Products	29
03	| Product and solution safety	30
04	| Product and solution sustainability	35
Processes	40
05	| Climate and energy	41
06	| Circularity	53
07	| Supply chain	57
08	| Sustainable governance	65
Annex	81
Further disclosure on materiality analysis	82
Further disclosure on 02 | Talent	84
About the Sustainability Insights	86
GRI content index	88
SASB content index	102
TCFD content index	103
Publication information	105

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Contents - Sustainability management - People - Products - Processes - Annex

Sustainability management

Sustainability understanding	09
Sustainability in KION 2027 strategy	10
Sustainability strategy	10
Sustainability action fields	13
Strategic link to the Sustainable Development Goals	14

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Contents - Sustainability management - People - Products - Processes - Annex

Sustainability management

The KION Group is one of the world's leading suppliers of industrial trucks and supply chain solutions, and acts according to its corporate purpose in daily activities:

We keep the world moving. Leading the way in sustain­ able development in the material handling industry is what the KION Group endeavors to do across its range of products and services. The KION Group's portfolio encompasses­ industrial trucks, such as forklift trucks and warehouse trucks, as well as integrated automation technology and software solutions for the optimization of supply chains, including all related services.

For the KION Group, sustainability is key to growth, profitability, resilience, customer orientation, and successful development of products and services. With the brands Linde Material Handling, STILL and

Baoli, as well as Fenwick and OM in the regional markets, the KION Group strategically integrates sustain­ ability criteria in the ITS segment via its Operating Units (OUs) KION ITS EMEA, KION ITS Americas and KION ITS APAC. In the SCS segment, the KION Group further drives sustainable value creation with its brand

Dematic operating­ via the OU KION SCS. The Corporate Services segment includes activities other than those of the operating business and the holding functions of the KION Group. These include service

companies that provide services such as IT and general administration across all segments (­ annual report 2023: Company profile, Segments).

Sustainability understanding

The KION Group fosters social responsibility for thinking sustainably holistically across the business and will enhance the strategic integration by inherently involving the analysis of sustainability-related opportunities and risks. For many years, sustainability criteria have been continually integrated step by step along the entire value chain: from design and the supply chain to KION Group's own operations and the product life cycle.

Truly sustainable development requires a global perspective, joint ambitions, and close collaboration. At the KION Group, each and every employee and stakeholder, including Executive and Supervisory Board members, has a shared responsibility to implement sustainable business practices and to foster the sustainable transformation of the KION Group. With this

understanding, the KION Group strives to act as a sustainable partner on all levels ( Stakeholder dialog). Besides research and development innovation in the company, the KION Group further develops its efforts for responsible sourcing with its business partners to enhance sustainability in its own operations. Further up the value chain, the KION Group as a supplier in turn impacts the sustainability performance of its customers and is committed to equipping its customers with highly efficient, sustainable products and solutions that enable them to achieve their sustainability goals.

The KION Group aspires to understand its customers' needs like no other company in the world and to provide appropriate solutions.

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Contents - Sustainability management - People - Products - Processes - Annex

Sustainability in the

KION 2027 strategy

The KION 2027 strategy follows the overall objective of profitable growth and comprises six specific fields of action: multi-brandedgo-to-market, growth plans for specific regions, automation and software, performance and agility, values, people and leadership, and sustain­ ability ( annual report 2023: Strategy of the

KION Group*). In both its sustainability strategy and in its operations, the KION Group acts in accordance with the corporate values of integrity, collaboration, courage, and excellence. As part of the KION Group's understanding of sustainable governance, the

KION Group Code of Compliance (KGCC) sets out principles that are designed to fulfill the KION Group's legal and ethical responsibilities to its employees, business partners, shareholders, the environment, and other stakeholders.

Sustainability strategy

The KION Group aims to shape a sustainable future and to keep the world moving with a clear sustainability strategy, ambitious objectives, and effective measures. The Group's sustainability strategy is based on the guiding principle "We take responsibility". For the

KION Group, this means taking responsibility for creating sustainable products and solutions, caring for our people, and managing the impact of our operations on the environment and the society we live in.

The sustainability strategy is structured along the three strategic dimensions of People, Products, and Processes, comprising eight interdependent sustainability action fields. Each action field is underpinned by a specific program with objectives, measures and quantitative monitoring that is derived from the sustainability strategy and materiality analyses. The KION Group pursues a systematic groupwide approach for the operational implementation of its sustainability strategy and the underlying program (­ NfR 2023: Sustainability strategy, action fields and targets).

In 2023, a significant milestone was officially estab­ lished in the KION Group's sustainability strategy. KION GROUP AG committed to the Science Based Targets initiative (SBTi) and established the long-term climate target of achieving net-zero greenhouse gas (GHG) emissions along its entire value chain by no later than 2050. In addition, the sustainability strategy was enhanced with new targets for lifecycle assessments and cradle to cradle certifications for increasing the share of renewable energy and recovered waste in own operations. The respective target specifications will be further refined in 2024. As part of the further develop­ ment of the sustainability strategy in 2023, the existing targets were also subjected to a validation process.

The eight action fields of KION Group sustainability management

We take responsibility

People  |  Products  |  Processes

Sustainable governance

	Suppliers			KION Group			Customers
	Supply chain				Occupational health				Product and
					and safety				solution safety
					Talent				Product and solution
									sustainability
					Circularity
					Climate and energy

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