Water and marine resources

The ‘Water and marine resources’ chapter meets the disclosure requirements of ESRS E3 and is based on the results of the double materiality analysis. Material topics for the KION Group are managed in the context of the ‘Climate and energy’ action field.

Impacts, risks, and opportunities and their interaction with strategy and business model in relation to water and marine resources

The double materiality analysis described in the ‘Description of the process to identify and assess material impacts, risks, and opportunities’ chapter identified the following material negative impacts and risks in relation to water and marine resources.

Water scarcity in own operations (risk)

The KION Group faces material risks from increasing water scarcity in some locations due to water-intensive processes such as cooling at foundries and the washing of machinery and equipment, as well as consumption for drinking and other operational uses. Climate change and extreme weather events exacerbate this scarcity, heightening the risk of production disruptions and unforeseen operational costs. In water-stressed regions, the KION Group’s water use may intensify local resource depletion, further straining ecosystems. Although most of the water is returned to the environment, the risk of operational disruption remains. The KION Group is committed to reducing water withdrawal across its operations to further mitigate the risk of water scarcity.

Water scarcity in the upstream value chain (risk)

As the KION Group relies on global supply chains, the potential risk of water scarcity at different levels of its upstream supply chain may pose the risk of intermittent disruption to the manufacture of KION products. Disruption could be caused by delays in receiving materials from suppliers due to water shortages in upstream processes. This may result in a high level of operational inefficiencies and unforeseen costs for the KION Group. With water shortages expected to disrupt operations ever more frequently, the risk to business continuity and operational efficiency could grow in the future.

Water consumption in the upstream steel industry (negative impact)

Steel is a key upstream material for the KION Group. Producing steel consumes substantial amounts of water and thus contributes to the depletion of water resources, particularly in water-stressed regions such as parts of China, Mexico, and India. The extensive use of water, coupled with water-related hazards such as contamination and scarcity, may have negative environmental impacts in certain regions. It can therefore be assumed that these upstream activities have a negative impact on water scarcity and lead to increased pressure on the environment in vulnerable regions. 

Water consumption in the upstream electronics industry (negative impact)

Like the steel industry, the electronics industry is a key supplier for the KION Group’s products and solutions. The KION Group recognizes that the manufacture of electronic products and certain parts of the upstream value chain for electronic products consume significant amounts of water, particularly in the production of non-ferrous raw materials such as copper and lithium. Smelters and refineries use local water resources, which may lead to a depletion of those resources, especially in regions where water scarcity is already a concern. The KION Group is aware that sourcing electronics for its products may contribute to negative environmental impacts.

Policies related to water and marine resources 

The following subchapters deal with the KION Group’s material policies related to water and marine resources.

The KION Group is committed to sustainable water management practices across its operations. In its own operations, the Group acts in accordance with the HSE Statement of Intent and the HSE Standard in order to promote the responsible use of water at all sites, including those in areas where water risk is high. No groupwide policy specifically addressing water scarcity in the Group’s own operations and water consumption in the upstream supply chain was in place in the reporting year. This is because water scarcity was newly identified as a specific risk in the upstream value chain and in own operations and only deemed material in the most recent double materiality analysis conducted in 2024. The KION Group plans to further elaborate its policies to address identified impacts, risks, and strategic developments.

Health, Safety, and Environment Statement of Intent

One of the aims of the HSE Statement of Intent is to reduce the consumption of natural resources, including water, while minimizing polluting discharges. Further details are provided in the ‘Policies related to pollution’ chapter.

Health, Safety, and Environment Standard

The internal HSE Standard outlines site-specific actions that, in some cases, exceed national regulations and meet ISO 14001 standards. Local guidelines and standards are in place to ensure compliance with regional regulations and support the administration of environmental management across the KION Group’s sites. As part of the HSE induction, all employees at local sites and mobile engineers, agency workers, temporary workers, and contractors working for the KION Group must receive initial environmental training that covers water conservation, the management of waste, and recycling. Water consumption is also to be reduced by converting waste materials into reusable materials and objects, which is why all local sites must have waste recycling procedures in place. Further details about the HSE Standard are provided in the ‘Policies related to pollution’ chapter.

Principles of Supplier Conduct

The KION Group sets sustainability standards for the suppliers in its supply chain through specific guidelines, including its Principles of Supplier Conduct, that require compliance with national water management standards. Suppliers entering into a business relationship with the KION Group must meet these requirements. The Principles of Supplier Conduct are described in greater detail in the ‘Policies related to workers in the value chain’ chapter.

The KION Group expects to update its Principles of Supplier Conduct in the future to incorporate water-related matters and promote responsible and sustainable water usage by suppliers.

Actions and resources related to water and marine resources 

The following subchapters deal with the KION Group’s material actions related to water and marine resources.

As water scarcity was newly identified and deemed material in the most recent double materiality analysis conducted in 2024, a detailed roadmap that includes a structured action plan is required. The KION Group launched several initiatives in 2024 aimed at addressing water-related impacts and risks, in line with existing policies and the results of the materiality analysis.

With regard to the KION Group’s own operations, the results of the materiality analysis were incorporated into the sustainability strategy, particularly in the ‘Climate and energy’ action field, which encompasses local environmental protection and water management (see ‘Strategy targets and target achievement in 2024’)

Water-related initiatives in the Group’s own operations

The KION Group has implemented several initiatives at local level in its own operations aimed at reducing water withdrawal from a variety of sources. These initiatives meet legal requirements and are consistent with environmental management systems such as ISO 14001.

Projects to improve water management include the construction of water treatment plants to enable the reuse of water. One such plant was opened in 2022 for the ITS segment in India, for example. This included rainwater harvesting projects and the introduction of water-saving technologies to optimize water usage. Measures to detect and prevent leaks were also implemented. Regular local monitoring of water data has been instituted, complemented by centralized reporting to improve oversight.

In order to establish a culture of economical water use, communication initiatives were launched to educate employees, and regular training courses were held to embed effective water management practices. In addition to external auditing as part of ISO 14001 certification, internal central audits are carried out in accordance with the HSE Standard to support local efforts to manage water resources effectively.

While several water-related initiatives have been implemented over the years, the focus in future will be on targeted and effective action that makes a measurable and significant contribution to mitigating water scarcity in the Group’s own operations. By taking this action, the KION Group is committing itself to the sustainable management of water resources and the minimization of negative water-related impacts in its own operations.

Water risk and stress analysis in the Group’s own operations

The KION Group strives to deepen its understanding of water risks within its own operations, particularly in regions where water stress is high. With this in mind, an analysis of the potential water risks in the KION Group’s own operations was carried out across most of its sites in 2024, based on the current status of data according to the Aqueduct Water Risk Atlas (version 4.0) of the World Resources Institute. The majority of identified sites generally consume relatively little water. Due to significant water withdrawals at some KION Group sites, the analysis shows a medium overall risk. The results indicate that targeted investments and action at selected sites with high water risk can make a significant contribution to reducing the overall risk. Furthermore, the results must be integrated into the regular risk management process to ensure that water risks are systematically monitored and addressed.

Water risk and stress in the upstream supply chain

Water scarcity in the supply chain was newly identified and deemed a material topic in the most recent double materiality analysis conducted in 2024. No specific action was taken during the reporting period to address these risks or related issues.

A range of screening methods and tools, such as the EcoVadis assessment, are used to evaluate suppliers against sustainability criteria, including water management practices This identifies potential areas for improvement and highlights suppliers who have already taken action to protect water resources (see ‘Policies related to workers in the value chain’).

The collection of comprehensive environmental data on the entire lifecycle of selected components, including the associated water consumption, was started in LCA projects This data collection will help to build a robust database that will inform future sourcing decisions (see ‘Actions related to energy-efficient products (entity-specific)’).

Looking ahead, the KION Group aims to adopt an incremental approach, starting with detailed analyses focusing on water-intensive raw materials and components. The plan is to use insights from these analyses to mitigate water risks in the supply chain.

Targets related to water and marine resources 

The KION Group did not pursue specific, groupwide targets that address water scarcity in its own operations in 2024. Targets were set locally by each site, taking into account potential environmental impacts in accordance with local regulations and ISO 14001 certification.

The KION Group monitors the effectiveness of policies and actions relating to water withdrawal and discharge in its own operations, which fall within the scope of its annual reporting. As the ‘Climate and energy’ action field evolves, the need for groupwide, water-related targets for own operations is being analyzed to facilitate adaptation to strategic developments and effective regular monitoring of the impact and effectiveness of policies and actions aimed at mitigating associated risks.

The KION Group did not pursue water consumption reduction targets in the upstream value chain in 2024. The gradual phase-in of action on upstream water consumption is under consideration in supplier management.

Metrics related to water and marine resources 

The following deals with the KION Group’s material metrics related to water and marine resources.

The KION Group defined entity-specific metrics for monitoring the material risks associated with water withdrawal in the Group’s own operations. In order to standardize these disclosures, the Group aimed to mirror the metrics defined under ESRS E3-4 paragraph 28 ‘Water consumption’ and applied them to water withdrawals.

The KION Group collects and compiles water-related data from consolidated entities on an annual basis through a centralized internal reporting system. Reporting entities are required to highlight deviations from previous reporting periods, along with any relevant contextual explanations. Where available, the data sources included direct measurements (water meters) and invoice data from utility companies. Otherwise, estimated values were used as described below. Reporting entities must follow a standardized, groupwide estimation guideline, with data based on estimates documented in a dedicated field. In the reporting year, 40 percent of water withdrawal data was based on direct measurements (water meters) or on invoice data. 37 percent of metrics were calculated using best estimates based on data from previous years. In the remaining cases (22 percent), metrics were extrapolated using available data, historical data, country-specific averages, and other key business variables. Estimates are verified to maintain accuracy and reliability. Furthermore, external certification bodies validate the local environmental reporting procedures (including water) and the corresponding evidence as part of ISO 14001 certification.

Water withdrawal refers to the volume of water drawn from the respective sources and is measured according to standardized definitions that facilitate consistent reporting across all locations. Water withdrawal data for areas at water risk, including high water stress, was calculated using a data model based on the Atlas Aqueduct 4.0 framework. Water risk areas were identified using the default settings provided by the World Resources Institute (WRI), which classifies overall risk scores on a scale from 3 (high) to 5 (extremely high). Areas of high water stress were defined according to ESRS criteria. The identified risk areas were matched with corresponding KION Group locations using geolocation data, and the water withdrawal volumes were consolidated for these locations.