Knorr Bremse : Sustainability Report 2020 PDF 2.0 MB

Sustainability Report 2020

Profile

At a glance

Knorr­Bremse is the global market leader for braking systems and other systems for the rail and commercial vehicle industries. We drive forward innovations for sustainable system solutions in the mobility sector. Every day, we make a decisive contribution to greater safety, efficiency and reliability on rail tracks and roads around the world.

Divisions

Knorr­Bremse Rail Vehicle Systems equips commuter trains, freight trains, locomotives and high­speed trains with safety­critical products and systems. As well as braking systems, these include entrance systems and HVAC systems. Knorr­Bremse Commercial Vehicle Systems supplies products and systems for trucks, buses, trailers and agricultural machines. These include braking systems, but also solutions related to vehicle dynamics, including steering systems.

About this report

Our Sustainability Report (entitled UN Global Compact (UNGC) Progress Report until 2018) has kept our stakeholders informed of Knorr­Bremse's sustainability activities since 2011. The report describes the impact the company has on the environment and society. It also sets out Knorr­Bremse's sustainability objectives, the key indicators used to measure progress and how we manage our sustainability­related activities. This report covers the 2020 business year; the previous year's data is provided for comparison where available. The report is published annually and the next Sustainability Report is due to be published in March 2022.

This Sustainability Report includes the mandatory separate Non­Financial Report of the Knorr­Bremse Group, as controlled by Knorr­Bremse AG, pursuant to Sections 315b and 315c of the German Commercial Code (Handelsgesetzbuch - HGB), in con­ junction with Sections 289b to 289e HGB. Reportable content was identified in 2018 on the basis of a materiality analysis in com­ pliance with the requirements of the German EU CSR Directive

Implementation Act (CSR­Richtlinie­Umsetzungsgesetz - CSR­RUG) (see page 18). The report covers the fully consolidated subsidiaries listed in the Group's accounts; any content that only applies to a specific part of a company within the Group has been identified as such. The material non­financial content of this report within the meaning of Section 289c HGB has been audited by KPMG Wirt­ schaftsprüfungsgesellschaft AG (limited assurance). This content is marked with the symbols (in body text) and (for charts and diagrams). Links to other materials and references within the audited content did not form part of the audit, except in the sections entitled "About Knorr­Bremse" (page 04) and "Compliance and risk management" (page 24).

Publication notes

All references to specific roles in this report should be read as referring equally to all genders. The final deadline for submission of content was March 15, 2021. This Sustainability Report is available in German and English.

C O N T E N T

01

Content

02 Foreword

04 About Knorr-Bremse

06 Covid-19 - the major challenge of 2020

12 Strategy and Management

1. Principles and processes for strategy and management

1. Corporate Responsibility strategy

1. Materiality analysis and stakeholder involvement

1. Knorr-Bremseand the Sustainable Development Goals

1. Compliance and risk management

1. Due diligence processes for human rights

1. Products and Partners

1. Product and system safety

1. Ecological product design

1. Sustainability standards in the supply chain

1. Employees and Leadership

1. Employment conditions

1. Personnel development

1. Diversity and equality

1. Occupational health and safety

1. Environment and Climate

1. Environmental management
2. Energy and CO2 emissions

1. Conserving resources

68 Commitment and Society

1. Global Care: Global commitment

1. Local Care: Site involvement

76 Annex

1. Implementation of the ten UN Global Compact Principles
2. Index for the non-financial report
3. Assurance Report

1. Index of charts and tables

1. Imprint
   U3 Key Performance Indicators

02 K N O R R - B R E M S E S U S T A I N A B I L I T Y R E P O R T 2 0 2 0

Foreword

2020 was an extraordinary year in which the Covid-19 pandemic brought health, political and economic challenges that also had a huge impact on Knorr-Bremse.Covid-19 represented a major entrepreneurial challenge that focused attention in particular on sustainability, even though there were times when environmental protection took a back seat in the public perception.

Some people were very badly affected by the pandemic, and I do hope that all our business partners, employees and their families who fell ill will make a full recovery. Our thoughts are also with those colleagues who died as a result of the virus.

Over the last decade, Knorr-Bremse has built up reliable structures in terms of organization, ­personnel and specific areas, especially when it comes to sustainability management. This means we were able to respond effectively to the challenges of the Covid-19 pandemic. With the support and solidarity of everyone in the Group, the crisis team that was quickly established succeeded in drawing up, coordinating and efficiently implementing measures to protect against Covid-19. These enabled us to provide effective protection and support to our employees at corporate facilities, our supply chain and our customers from January 2020 onwards.

Thanks to the commitment of our suppliers and business partners, we were largely able to maintain the stable delivery processes that were essential for us to remain on course during this period. We were thus also able to continue our R&D activities during 2020, with above-average levels of investment establishing a strong market position for the Company in the long term.

Knorr-Bremse is already delivering answers to the most important industrial trends in our sectors

• and sustainability looms large among them. Over the coming years the second generation of e-mobility, as the cornerstone of zero-emission transportation, will shape the activities of Knorr-Bremse'sCVS division. The new, internal eCUBATOR unit has already started to work on developing the systems solutions required for emission-free commercial vehicles of the future.

By contrast, rail transportation is already the current and future emission-free method of trans- port. The RVS division is driving the development of greater product sustainability, among other things with the aim of improving rail vehicles' carbon footprint. And our high-techHVAC systems from Merak are an important element in combating the Covid-19 pandemic.

The Group-wide Climate Strategy 2030 unveiled by Knorr-Bremse in March 2020 represented a milestone for the Company. It set the goal of halving our CO2 emissions by 2030 and achieving carbon neutrality for Company facilities with effect from 2021. We are convinced that our redoubled­ efforts to protect the environment will contribute to the long-term financial success of the Company.

The pandemic has identified certain constraints, but at the same time has acted as a driver of progressive action. This applies specifically to the intensified process digitalization in all areas of the Company. In addition to smart product and process innovation, this includes developing comprehensive concepts for mobile working, with new working models that will improve

F O R E W O R D

03

work­ -life balance. In this context - and with regard to the professional development of employees ­ in general - an important role is going to be played by our recently launched eLearning platform which offers 16,000 different courses.

Finally, the need to take measures to cope with the crisis has underlined the importance of ESG (Environmental, Social, Governance) issues and entrepreneurial risk awareness within Knorr-Bremse. This will contribute to strengthening the Company's resilience and will be ­welcomed by our stakeholders.

In this report we wish to make transparent our sustainability performance and highlight key measures, targets and indicators. By doing so we are underlining our commitment to the ten principles of the UN Global Compact for responsible corporate governance.

We hope you find the report interesting and inspiring.

Dr. Jan Mrosik

Chief Executive Officer of Knorr-Bremse AG