Headquarters
KHD Humboldt Wedag
International AG
Von-der-Wettern-Straße 4a
51149 Cologne
Germany
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. |
KHD’s sustainability strategy in detail
In its topic-related programs and measures, the strategy addresses business activities to incorporate ESG (Environment, Social, Governance) solutions with shared value for all stakeholders.
Strategy approach
Impact
KHD Group’s generic sustainability strategy and program mandates for KHD Group’s long-term plan to navigate the Group’s environmental, social and governance roadmap.
Milestones such as the introduction of CSRD (Corporate Sustainability Reporting Directive) as a framework with reporting and data serve as a yardstick for what has been achieved and the further focus on objectives.
Ratings show stakeholders worldwide how KHD is assessed in terms of sustainability and where KHD is positioned in comparison to competitors, which positive effects are strengthened, and which negative effects are minimized.
The central goal of the KHD sustainability program is to make the connection between sustainability and business transparent and to involve all stakeholders. Shared value is created with involved stakeholders, through partnerships, continuous dialogue and evolution.
Imagine sustainability for shared value of economy, society and environment.
Targets & goals
- Establish approriate and efficient sustainability management that is understood by employees and stakeholders
- Position KHD amongst industry peers leading in sustainability performance
- Evolve the sustainability strategy and foster partnerships and continuous dialogue
Program map:
implementation measures
- Development of a group-wide ESG strategy and roadmap
- Upgrade ratings, conduct ESG certifications
- Provide education and share knowledge and training about ESG
Key performance indicators
- Percent of internal and stakeholders with decent knowledge of ESG impacts, risks and opportunities
- Number and date of annual ESG ratings/certifications performed
- Increase number of partnerships and alliances for leveraging sustainability awareness and impact
KHD strategy focus on UN SDGs
By participating in the UN Global Compact, the Management Board of KHD demonstrates a dedicated commitment to incorporate the Ten Principles of the Global Compact on human rights, labor, environment, and anti-corruption into the business strategy of the Group.
*according to an employee survey in Q1 2024.
The 17 UN Sustainable Development Goals (SDGs) 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:
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®, Pyrofloor2®, 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:
| total | taxonomy-eligible | taxonomy-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
- Corporate social responsibility donations “Prime Minister Relief Fund” 2023: € 101,000 · 2022: € 86,000 · increase: 16.9%
- Employee training/development cost 2023: € 147,000 · 2022: € 95,000 · increase: 55.4%
- R&D expenses 2023: € 4,088,000 · 2022: € 2,927,000 · increase: 39.9%
Governance, risk & compliance
“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
To comply with all relevant legal and regulatory requirements is a prerequisite for KHD Group’s license to operate. With increasing complexity of technology and the dynamic landscape of risks, solid and at the same time flexible Governance is becoming more and more important. Governance provides the factual and legal frameworks for directing our activities, encompassing our culture, organizational structure, guidelines, resources, and processes.
Governance for KHD Group goes beyond frameworks and organizational borders. It is a common approach of all stakeholders to creating a culture of integrity, transparency, and accountability, understanding guidelines, and living up to them.
Governance, Risk & Compliance
KHD Group core policies
Code of Conduct
This Code of Conduct defines the standards of ethical behavior required of all employees of KHD Group. We are committed to loyalty, the concept of fair practice and are aware of our responsibility towards society and the environment.
| Code of Conduct |
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.
| Supplier Code of Conduct |
Group HSE Policy
For uncompromised health and safety for people, environment, and products, the KHD Group HSE Policy provides guidance for preventing and mitigating any kind of accident and incident across our value chain and beyond in accordance with globally accepted standards of ISO 45001 and ISO 14001.
| Group HSE Policy |
Group Quality Policy
Responsible innovation for KHD Group must equally fulfil high standards of quality, safety and integrity of products, services and processes. KHD Group Quality Policy* defines the benchmark for continuous improvement and enhancement.
*KHD Group operating companies are certified according to ISO 9001, a level playing field for comparable standards globally.
| Group Quality Policy |
Partnerships & alliances
When it comes to sustainability, no individual company or organization has all the answers. We believe that achieving it will instead be a collective effort and that partnerships are, therefore, essential. Such partnerships enable us to share knowledge and best practices, leverage good governance and business principles, and enhance transparency, communication, and trust.
Here at KHD, we actively support collaborations with other industry leaders, research institutions, and non-governmental organizations to develop and implement sustainable solutions and address broader sustainability challenges.
United Nations Global Compact
We are a participant of the United Nations Global Compact (UNGC). As such, we are committed to upholding the Ten Principles of the UNCG in the areas of human rights, labor, environment, and anti-corruption. Each year, we publish a Communication on Progress (CoP), detailing our ongoing efforts and achievements in sustainable practices. Explore our UNGC public profile to learn more about our initiatives and impact.
Blue Competence, VDMA
We are a partner of the German Machinery and Equipment Manufacturers Association’s (VDMA) Blue Competence sustainability initiative. Through this, we are committed to adhering to the association’s 12 Sustainability Guidelines.
