Company

Sustainability

Here at KHD, sustainability is a holistic commitment to add value to the economy, the environment, and society through strong corporate values and ethical business practices. Our human capital, innovation and performance are the core enablers of sustainability at KHD. It touches on every part of our daily work and involves all those impacted by our business activities – from customers to suppliers, the communities we operate in, and our KHD team members around the world.   

Strategy & Program

Headed by our sustainability manager and reporting directly to our CFO, our global sustainability organization is responsible for driving our sustainability strategy with the aim of positioning KHD among industry leaders when it comes to sustainability. The strategy comprises of four modules:  

The foundation of KHD’s sustainability strategy

Leading decarbonization of cement through innovative technologies and solutions.

Encouraging people and strengthening human capital.

Developing resilient supply chains and strong partnerships.

Engaging in responsible and ethical business practices.

The strategy is supported by our global sustainability program, which sets defined, achievable, and measurable targets for each to deliver on our environmental, social, and governance responsibilities.

Reporting

We report according to the CSRD standards, which are the ESG reporting standard for listed companies in the EU. Our Non-Financial Group Reports (NFRD standard), including the EU Taxonomy Report, can be found here.

EU Taxonomy
The EU Taxonomy is a green classification system designed to evaluate the environmental performance of specific economic activities. It provides a way for us to determine whether our business activities align with sustainability goals. We currently offer seven products that qualify as Taxonomy-eligible of which two are Taxonomy-aligned.

Seven taxonomy-eligible products:
Preheater, Pyrorotor®, Pyroredox®, Pyrofloor, roller press with separators, Oxyfuel, KHD ProMax®

Two taxonomy-aligned products:
Pyrorotor®, roller press with separators

KHD products are classified as:

  • enabling activities
  • contributing to EU environmental goal: “climate mitigation”
  • 3.6. Manufacture of other low-carbon technologies
  • 8.2. Data-driven solutions for GHG emissions reductions

In 2023, our Taxonomy-related business activities delivered:

totaltaxonomy-eligibletaxonomy-aligned
revenues
in %
€ 224,667,000€ 43,799,000
19.5%
€ 40,124,000
17.9%
capital expenditure (CapEx) in %€ 2,740,000€ 218,000
8.0%
€ 218,000
8.0%
operational expenditure (OpEx) in %€ 7,010,000€ 1,186,000
16.9%
€ 1,186,000
16.9%

CSR-Figures – year on year comparison

ESG Governance

“Supply chains around the world are faced by a range of risks, including geopolitical crises, evolving market dynamics, and changes to the climate. There is no doubt that this poses a challenge for companies like KHD who rely on global supply lines to deliver our products and solutions to our worldwide customer base. Although we cannot predict the future, we are continuously strengthening our supply chain resiliency through robust and transparent business processes and control systems, supported by digital innovation and a process of continuous evaluation and improvement.” 

Dr Matthias Jochem, Chief Operating Officer

We believe strong corporate values and integrity are prerequisites to reliable and profitable business activities that deliver shared value to all stakeholders. These values take many forms: from protecting and respecting human rights, guaranteeing employee freedoms, and preventing corruption and bribery, to eliminating forced and child labor, protecting the environment and natural resources, and complying with competition and antitrust regulations. These values are an  integral part of who we are and provide the foundation for all stakeholder relationships.

We take a zero-tolerance approach to upholding these values and act quickly to prevent any violation. When a violation has occurred, we will respond quickly to sanction the parties involved and provide redress as required.  

Supplier Code of Conduct
The KHD Supplier Code of Conduct incorporates our corporate values and serves as a compass to guide our daily interaction with our suppliers around the world.  
Part of our risk management and compliance system is the Integrity Line, which allows stakeholders to submit complaints and information related to suspected violations of the Supplier Code of Conduct.  

Links & Downloads

KHD AG – Supplier Code of Conduct

PDF – English

UN Goals in Detail

We are proud to be signatories of the UN Global Compact, demonstrating a clear commitment from our Management Board to the Ten Principles of the Global Compact on human rights, labor, environment, and anti-corruption.

*according to an employee survey in Q1 2024.

This includes the UN Sustainable Development Goals (SDGs), which provide a shared blueprint for peace and prosperity for people and planet, now and in the future. We understand we have a direct role to play in delivering many of the SDGs through our corporate culture, sustainability strategy, and our Cement beyond Carbon vision. As part of this, we have identified* those SDGs where our initiatives and business operations have the most significant potential to contribute to sustainability efforts:

Contact

We provide regular updates on our sustainability initiatives on the News & Reports pages of our website. We also welcome questions and feedback from all stakeholders on sustainability issues via the contact form below or at sustainability@khd.com.

Contact

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