Jungheinrich: Jungheinrich : Sustainability statement 2024

Sustainability statement that also fulfils the requirements for the combined non-financial statement prepared in accordance with Sections 289b et seq. and 315b to 315c of the German Commercial Code (HGB) 1 GENERAL DISCLOSURES General basis for preparation of sustainability statements In this chapter, Jungheinrich publishes the information required by law for the 2024 financial year in accordance with the CSR Directive Implementation Act (CSR-RUG). This sustainability statement is prepared on a consolidated basis for the Jungheinrich Group in full compliance with European Sustainability Reporting Standards (ESRS). It also fulfils the requirements for the non-financial Group statement pre- pared in accordance with Sections 289b et seq. and 315b to 315c of the German Commercial Code (HGB) and therefore also constitutes the combined non-financial statement for the Jungheinrich Group and Jungheinrich AG. The policies, actions and targets at Group level are generally also pursued at Jungheinrich AG. By publishing this statement, Jungheinrich also meets the requirements of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the estab- lishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (hereafter EU Taxonomy Regulation) [ page 69 ]. No subsidiaries included in the consolidated financial state- ments have been excluded from the sustainability reporting of Jungheinrich. The scope of consolidation corresponds to that found in the consolidated financial statements as of 31 December 2024, with the exception of reporting in accordance with ESRS E1-6 as this requires additional consideration of all subsidiaries over which Jungheinrich exercises operational control. The first-time full application of ESRS as a framework in accordance with Sections 315c Paragraph 3 in conjunction with 289d HGB is due to the significance of ESRS as reporting standards adopted by the European Commission for sustain- ability reporting. The standards are applied at Group level and not at the level of Jungheinrich AG as the Group statement pursuant to ESRS is relevant for stakeholders. In its imple- mentation of the new reporting standards, Jungheinrich aims to present its sustainability performance systematically and comprehensively with regard to environmental, social and governance (ESG) matters. The integration of ESRS serves to produce transparent, comparable and detailed sustainability reporting that goes beyond the requirements of the CSR Directive Implementation Act. Jungheinrich provides com- prehensive information on all topics identified as material as required by ESRS and general information, as this information is considered neither classified nor confidential. The sustainability statement includes comprehensive infor- mation on the upstream and downstream value chain which is presented in consideration of the matters described in the following. A double materiality assessment was carried out in accordance with ESRS in order to record the most important impacts on people and the environment (impact materiality) and the business risks and opportunities resulting from sustain- ability topics (financial materiality). The double materiality assessment is a comprehensive, strategic approach to assess impacts, risks and opportunities related to sustainability. The assessment covers the entire value chain, from raw material extraction to product use by customers and the treatment of products at the end of their life cycle. All activities are assessed for their actual and potential impacts, risks and opportunities. There are no material risks resulting from the business activities, business relationships, products and services of Jungheinrich that are very likely to have serious negative impacts on non-financial aspects in accordance with Section 289c HGB. The sustainability strategy takes a holistic approach, from the sustainable design of supply chains to the development of sustainable products and improving customer safety. Key actions here include supplier assessments, climate actions, staff development and compliance with high safety and quality standards. Targets are pursued along the entire value chain and in business areas, for example with regard to supplier or climate management. Recording and evaluating relevant data are a key instrument in ensuring strategic success. This data serves as the basis for a transparent, traceable presentation of progress for sound sustainability reporting. 1 Disclosure unrelated to the management report that is not subject to audit of the financial statements. Disclosures in relation to specific circumstances Definition of time horizons For reporting purposes, time horizons are defined with a distinction between short-, medium- and long-term per-spectives. Jungheinrich has decided to deviate from the medium- and long-term time horizons defined in the stand-ard in order to take account of the circumstances described in the following in accordance with the requirements set out in ESRS. The medium-term time horizon of one to three years is sufficient to synchronise the time horizons for assess- ing financial materiality with the Group risk management process; the long-term time horizon is more than three years. With regard to the performance of climate risk analyses, the medium term has been defined as up to 2030 and the long term as up to 2050. These adjustments should ensure that decision-relevant financial and non-financial information is comparable for the key target audience for financial reports, particularly investors and analysts. This avoids discrepancies between the sustain- ability reporting and financial reporting which could lead to misunderstandings or an inconsistent risk assessment. More - over, the time horizon for the climate risk analysis has been chosen to allow for realistic, forward-looking analyses. These analyses ensure that the short-, medium- and long-term climate-related risks and opportunities are documented in full and incorporated in the company's strategic decision-making. Estimation and outcome uncertainty To ensure comprehensive reporting of metrics, assumptions and estimates are made for some metrics in the course of the data collection process, which may lead to uncertainties in outcomes. The information on upstream and downstream emissions relates to the value chain. These emissions are determined based on data from the ERP systems or other internal sources, insofar as possible. Common emission factors 1 and assump- tions are used for the calculation. Logical correlations are used, for example, such as the use of comparable subsidiaries or extrapolation based on information available during the year. Depending on the situation, information regarding full- time equivalents (FTE), revenue and/or surface area was used for this purpose. The assumptions used are intended to resolve, for example, a lack of availability and quality of infor- mation by way of suitable processes, but at the same time lead to uncertainty in outcomes. Jungheinrich improves data quality gradually by improving its data base, for example by using primary data. The company is also currently working on selecting and implementing more systems-based applica- tions with a view to harmonising the data collection process and making it more efficient. There may be outcome uncertainty in reporting with regard to the indicators on energy consumption, Scope 1 and Scope 2 emissions and waste data. Depending on the availability and traceability of information, some data here is also extrapo- lated based on information available during the year and/or by using comparable subsidiaries on the basis of traceable estimates. The planned implementation of systems-based applications should lead to an improvement in data quality for this data as well. The calculation of resource inflows for the circular economy is also subject to uncertainties as some of the data required is only available on a limited basis. They are calculated based on a modular concept which covers all key material flows directly or indirectly. The standard weights of delivered material handling equipment, waste volumes for production plants, estimates regarding the purchase of warehouse equipment and estimated weights for purchased merchandise, for example, are used in this process. Additional components comprising resource inflows, such as the share of biological and secondary materials or the volume of packaging, are based on expert estimates and estimation procedures. This use of partially comprehensive estimates in relation to the overall figure creates increased outcome uncertainty in the metrics. Product life cycle assessments are taken into account in reporting for the EU Taxonomy Regulation. Jungheinrich has carried these out for all series produced in house in order to determine the greenhouse gas emissions in various phases of the life cycle. There are outcome uncertainties in this process as assumptions are made in various phases: Use of materials: material handling equipment of the same kind is grouped into categories and the materials in these categories are considered representative for the trucks. For other materials that cannot clearly be assigned to a category, an average emission factor for the clearly assignable materials is used to calculate the greenhouse gas emissions. 1 The emission factors used correspond to established sources (for example, International Energy Agency [IEA], Department for Environment, Food and Rural Affairs [DEFRA], Environmental Protection Agency [EPA]). Production: energy consumption and waste volumes from manufacturing plants are allocated based on the truck weight. It is assumed that these volumes vary proportionally to the weight of the truck, allowing for simplified calculations. Transport: average distances, means of transport and routes from the manufacturing plants to the sales com-panies are assumed. Use and main