Our approach
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 Governance
Sustainability management within the Krones Group is steered and coordinated by a central Sustainability Team, which 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. In 2023, an additional Regional Sustainability Competence Team was established, consisting of regional sustainability experts, with the goal of strengthening international cooperation on sustainability. For employees on site, sustainability coordinators are the direct contact person for all sustainability matters. The central 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.
Sustainability Executive Reviews
The Executive Board holds coordination meetings on sustainability topics at sixweek 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 2023, ES G targets account for 15% of the target amount of the long-term incentives (LTIs), and further ES G targets will be added successively. In addition to the Scope 1 and Scope 2 greenhouse gas emissions, the percentage of women in management (Krones AG and Krones Group) are likewise included in the LTI calculation as of the financial year 2023. Greenhouse gas emissions are weighted at 70%, the percentage of women in management in the Krones Group is weighted at 20% and the percentage of women in management within Krones AG is weighted at 10%.
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).
Materiality analysis
The materiality matrix for the Krones Group underwent a review in 2023. The review showed that the results of the 2022 materiality analysis remain valid. Krones will conduct another materiality analysis in 2024 in order to fulfil future requirements for companies to conduct a materiality analysis under the Corporate Sustainability Reporting Directive (CSRD).
