Kuehne + Nagel International : Sustainability Report 2021 (PDF)

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)