Own workforce of the KION Group

The ‘Own workforce of the KION Group’ chapter meets the disclosure requirements of ESRS S1 and is based on the results of the double materiality analysis. Material topics for the KION Group are managed in the context of the ‘Occupational health and safety’ action field in the sustainability strategy.

Material impacts, risks, and opportunities and their interaction with strategy and business model in relation to own workforce 

The double materiality analysis outlined in the ‘Description of the process to identify and assess material impacts, risks, and opportunities’ chapter identified a positive and a negative material impact of the Group’s business activities on its own workforce. The KION Group had already identified occupational health and safety (OHS) as a material topic in previous materiality analyses, and it was once again confirmed as material in the most recent materiality analysis conducted in 2024. Human rights due diligence related to OHS is carried out within the scope of the ‘Occupational health and safety’ action field in the KION Group’s sustainability strategy (see ‘Strategy targets and target achievement in 2024’).

It is highly unlikely that the KION Group’s own operations would lead to a significant risk of forced labor or child labor. [[This is set out in the document ‘Group internal human rights assessment & due diligence 2023/2024’, available on the KION Group website at www.kiongroup.com/en/About-us/Management/.]]

Occupational accidents and injuries (negative impact)

The manufacturing industry is inherently prone to occupational accidents and injuries, representing a systemic negative impact. The severity of the impact is assessed individually for each case. While the entire workforce of the KION Group, including indirect administrative functions, could potentially be affected by an occupational accident or incident, the main focus of this negative impact is on the direct workforce performing activities in production functions, particularly in foundries, in sales and service, or in logistics. This includes non-employees as well as workers engaged by third parties, such as contractors and temporary agency workers.

The potential risk to employees and non-employees is dependent on their assigned task in the workforce and the associated work environment. To develop a better understanding of greater risks of harm, the KION Group assesses hazards and associated risks in certain environments as part of its hazard identification and risk assessment process at individual sites. Where occupational accidents and incidents occur in the course of its own business activities, the KION Group is directly responsible for the negative impact on employees and non-employees and must actively ensure that preventative measures are taken.

Interests and views of stakeholders 

As a company that operates globally, the KION Group bears corporate social responsibility not only toward its customers, investors, and the general public, but also in particular toward its own workforce as a key group of affected stakeholders. This corporate social responsibility requires KION Group to comply with all applicable laws, to respect ethical values, and to act sustainably everywhere and at all times.

KION GROUP AG has developed tools to allow employee representatives to directly address the Group management and its representatives about matters that are of relevance to the workforce, or to inform them of economic factors affecting fundamental corporate decisions.

The KION Group conducts the annual KION Pulse survey to identify and adequately reflect the interests and views of its own workforce. The objective of increasing employee satisfaction as measured by the KION Pulse survey is enshrined in the ‘Talent’ action field of the KION Group sustainability strategy (see ‘Strategy targets and target achievement in 2024’). The employee survey addresses topics such as internal communication and collaboration, while also enabling the workforce to share their personal perspectives and to raise actual and potential impacts. The findings of the survey provide direct insights that help to further improve the engagement and motivation of the KION Group’s workforce. Annual participation is monitored and compared with the results of previous years in the respective areas in an equivalent and measurable way under the supervision of the CPSO. In 2024, the KION Group was able to increase the number of active employees and apprentices taking part in the KION Pulse employee survey and improve the resulting engagement score (see ‘Strategy targets and target achievement in 2024’). The survey’s engagement score and participation rate are factors in the calculation of the variable remuneration of the KION GROUP AG Executive Board based on long-term sustainability targets, and are also being factored in for executives from 2024 onwards (see ‘Integration of sustainability-related performance in incentive schemes’).

The KION Group is committed to complying with internationally agreed labor rights and human rights and regards them as a minimum standard to be achieved at all times. [[Respect for human rights, in particular, is enshrined in several policies, including the International minimum employment standards in the KION Group, the KION Group Code of Compliance, the Statement on the KION Group’s human rights strategy and the Group internal human rights assessment & due diligence 2023/24 document.]] The function of the human rights officer described in the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz) is delegated to the KION Group’s Human Rights Committee, which reports to the Executive Board of KION GROUP AG. The Human Rights Committee receives reports and complaints about human rights and environmental violations that are addressed to the committee as a whole or to its members, or that it receives via the KION whistleblowing system, for further processing. In addition, the Human Rights Committee monitors the processes established to identify, prevent and remedy risks of human rights and environment-related violations and the implementation of remedial measures. In addition, the KION Diversity & Inclusion Council was established to actively drive progress toward greater diversity, inclusion, and equity within the KION Group.

The interests and views of the own workforce are collected in regular meetings on health, safety and environment (HSE) at local and central level. The KION Group HSE Standard requires a local procedure to be in place to enable both employees and non-employees to raise occupational health and safety issues. As part of its sustainability strategy, the KION Group endeavors to take the interests and views of its own workforce into account, with the central HSE function playing a key role in the development of the ‘Occupational health and safety’ action field (see next chapter ‘Processes for engaging with own workforce and workers’ representatives about impacts’).

Processes for engaging with own workforce and workers’ representatives about impacts

The following subchapters deal with the KION Group’s processes for engaging with its own workforce and workers’ representatives about impacts.

Investigation of occupational accidents and injuries

The HSE Standard requires all local entities to have an incident investigation procedure in place for any type of accident. According to the HSE Standard, the investigation must be carried out by the line management, with the participation of the employees involved in the accident. In case of a fatality or further accidents, local entities are responsible for the accident investigation. The central HSE function carries out a post-fatality audit focused on management responsibility. It also supports the local investigation of serious incidents, which are classified in accordance with the KION Group process for serious incidents and fatalities. On this basis, fatalities are the result of work-related accidents or work-related illnesses, while serious incidents are categorized as personal injury, environmental incident, or property damage. The findings of the incident investigation are used to identify precautionary measures to avoid similar incidents in future, and are shared in HSE meetings at local and central level. How often the company’s own workforce participates in such investigations depends on the frequency of accidents and injuries.

Regular central HSE meetings

In addition to the workforce involvement in incident investigations, the central HSE function organizes various virtual HSE meetings with the HSE heads of the Operating Units and the regional HSE representatives of the Operating Units, as well as the wider HSE network.

A monthly HSE leadership meeting is held with the HSE heads of the Operating Units, chaired by the head of the Sustainability & HSE department. The HSE heads are a specific group of senior HSE managers from the Operating Units KION ITS EMEA, KION ITS Americas, KION ITS APAC, and KION SCS who are in charge of the activities relating to occupational health and safety in the relevant Operating Unit. The meeting focuses on strategic topics and involves target setting, a performance review of HSE metrics, and discussion of the findings of incident investigations. A dedicated time slot is reserved at the end of the meeting for participants to raise any concerns or relevant discussion points, which can be used to assess the effectiveness of this engagement process.

In addition, an HSE communication meeting, led by the central HSE function, is held every two months. The regional HSE representatives of the Operating Units and the wider HSE network are invited to take part in these meetings, which focus on operational activities. The regional HSE representatives of the Operating Units are a diverse group comprising members from every global region in which the KION Group is active. They are responsible for occupational health and safety in one or more entities that cover several locations. The HSE communication meetings discuss the findings of incident investigations and also share initiatives and examples of best practice from the Operating Units, regions and local sites.

There is also a monthly HSE network meeting chaired by the head of the Sustainability & HSE department.

Local HSE meetings and consultations

The HSE Standard requires all entities within the KION Group to conduct at least one quarterly HSE meeting on relevant HSE subjects at site level. These HSE meetings have to be chaired by a senior manager within the entity and must include a workforce representative.

The HSE Standard also requires all subsidiaries to establish a documented HSE consultation process for their own workforce. The process must ensure that the workforce can raise concerns on HSE issues and that these concerns will be addressed by management.

How effectively the company’s workforce is involved at a local level is measured using a groupwide HSE assessment, which includes a specific question to evaluate this aspect (see ‘Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions’).

Engagement through workers’ representatives

Employee engagement based on participation rights, along with the formation of workers’ representative bodies at workplace and at Group level, follows the relevant national regulations. In several European countries, workers’ representatives are organized at local level. In Germany, the Group Works Council consists of representatives from local works councils from across the Group. The European Works Council represents the interests of employees in the European Union in international matters.

The employees of the KION Group can express their interests and views to the workers’ representatives, who deal with them in regular and ad hoc meetings. These meetings also address occupational health and safety issues. HSE targets and programs must be communicated to stakeholders such as the works council in accordance with the requirements of ISO 45001 certification.

Processes to remediate negative impacts and channels for own workforce to raise concerns

The following subchapters deal with the KION Group’s processes to remediate negative impacts and channels for own workforce to raise concerns.

KION Group whistleblowing system

A key component of the KION Group’s compliance management system is the whistleblowing system that employees and third parties can use to confidentially report actual or suspected cases of unlawful or inappropriate conduct. This includes concerns about negative impacts on matters such as human rights, working conditions, equal treatment and other work-related rights.

[[The primary avenues for reporting are the whistleblowing tool and hotline, which enable anonymous submissions in writing or by phone. Reports can be made via the KION Group’s website at www.kiongroup.com/whistleblowing.]] Employees can also contact the Compliance, Legal, or Internal Audit departments or members of the KION Group Compliance Committee directly. Some entities offer additional local reporting channels, such as Compliance Committees or Ethics Committees. The whistleblowing tool is operated by an external provider in order to ensure confidentiality. Reports made through other channels are documented and managed in the compliance case management system.

The whistleblowing system is designed to be global but addresses local needs to the greatest possible extent. Anyone should be able to access the system and use it in their own language via their preferred communication channel. To encourage use of the system and promote a culture of speaking up, the reporting channels are communicated via the intranet, in mandatory e-learning courses (e.g., on the KION GROUP Code of Compliance (KGCC), on the ‘speak-up culture’, and on minimum employment standards), and in classroom-based training.

The integrated compliance case management system is designed to ensure that all reports received are reviewed and that each case is processed systematically and in compliance with the EU Whistleblowing Directive. Depending on the nature of the report, the responsibility for managing the investigation, as well as completing the process and carrying out the follow-up, either falls to a Compliance Officer or a representative of another central department. Embedded processes and policies are in place to reinforce confidentiality and protection against retaliation. In 2024, the KION Group looked into all cases reported to the whistleblowing system and investigated all credible allegations of potential violations. Reports are considered reliable if they include sufficiently concrete facts that can be verified with reasonable effort. Disciplinary action is taken in any identified cases of misconduct. If necessary, the compliance management system is modified to counter future violations.

The KION Group is continuously improving the whistleblowing system, based on feedback from reporting parties and users of the system. Anyone is entitled to suggest improvements. These will be discussed by Corporate Compliance, the Compliance Committee, and other stakeholders as appropriate. Questions concerning the whistleblowing system are included in the annual compliance risk assessment questionnaires that are completed by the KION Group entities.

The KION Group prohibits any retaliation against whistleblowers. Whistleblower protection is codified in the KGCC and in the internal investigation policy. There is no compensation system in place to manage compensation for workers in the value chain if they were or are affected by negative impacts. Compensation is considered on the basis of individual cases. The effectiveness of the whistleblowing system is monitored by the Compliance Committee and the Human Rights Committee.

Reporting channels and processes related to occupational accidents and injuries

All KION Group employees, contractors and/or visitors are mandated to immediately report accidents and incidents that occur while they are working for the KION Group, or on a KION Group site, to their supervisor or contact person at the KION Group.

The KION Group offers its own workforce various reporting channels to raise concerns and grievances related to occupational accidents and injuries, for example the Group’s anonymous whistleblowing system, operated by an external provider. Other reporting channels include the local ideas management, near-miss management, and meetings between individual employees and their line manager or supervisor, as well as safety walks and behavior-based safety observations carried out at the workplace. The availability of these channels is communicated to new employees during the HSE induction training at local level, while existing employees are reminded as part of HSE refresher courses. In addition to the groupwide whistleblowing system, local HSE representatives report employee concerns and grievances, including accidents, incidents, and near misses, using an internal reporting system, which is monitored by the Corporate Sustainability & HSE department. The effectiveness of this reporting procedure is reviewed on a monthly basis in terms of data completeness, and annually for data validity.

Actions associated with concerns and grievances are monitored until their implementation is completed at the local sites. In case of a negative impact of an occupational accident or injury, affected employees receive compensation in accordance with national legal requirements. HSE representatives at the local sites are responsible for the effectiveness and adequacy of remediation measures.

The reporting channels and the employees’ commitment to reporting workplace accidents and incidents are reviewed as part of the central HSE audits, the HSE assessments, and the local ISO 45001 certification (see ‘Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions’).

Policies related to own workforce

The following subchapters deal with the KION Group’s material policies related to own workforce.

KION Group Code of Compliance

[[The KION Group Code of Compliance (KGCC) is based on the three principles of human dignity, human rights, and no discrimination, among others.]] In particular, this includes zero tolerance for child labor, any harmful employment of young people, or any form of forced labor. All forms of discrimination – whether it be on the grounds of nationality, ethnic origin, religion, age, disability, skin color, sexual identity, political belief, or gender – and harassment, including sexual harassment, are prohibited. The KION Group is committed to complying with the following state-level international agreements, which provide important guidance: The United Nations’ Universal Declaration of Human Rights, the European Convention for the Protection of Human Rights and Fundamental Freedoms, and the fundamental labor conventions of the International Labour Organization (ILO), as documented in the ILO Declaration on Fundamental Principles and Rights at Work.

With respect to particularly vulnerable employees, the KGCC includes legal provisions regarding the protection of young people, pregnant women, and people with disabilities. Additional policies, such as agreements on the inclusion of people with disabilities at local level, emphasize the KION Group’s commitment to improving reintegration into work and to enabling people with physical disabilities to remain in employment.

All KION Group employees must abide by the KGCC. The KGCC also covers non-employees as part of the own workforce, as business partners are expected to comply with all applicable laws. These include laws to prevent child labor, to respect human rights, to not engage in modern slavery (including forced labor and human trafficking), and to take responsibility for the health and safety of their workers. Any misconduct, concerns, or contraventions can be reported via the whistleblowing system (see ‘Processes to remediate negative impacts and channels for own workforce to raise concerns’). Further details on the KGCC can be found in the ‘Policies related to pollution’ chapter.

International minimum employment standards in the KION Group

In addition to the KION Group’s positioning on human rights as outlined in the KGCC, including related principles and expectations towards employees and business partners, the Company is committed to meeting standardized minimum employment standards across the organization. These are laid down in the ‘International minimum employment standards in the KION Group’ corporate policy, which applies to all workers in the KION Group and to all entities in which KION GROUP AG has a direct or indirect majority stake or over which it has direct or indirect control.

The minimum employment standards are based on the UN Guiding Principles on Business and Human Rights, and on the principles and rights at work prescribed in the eight fundamental conventions of the International Labour Organization (ILO). The KION Group is committed to treating all employees with equal respect, regardless of personal characteristics such as gender, color, ethnic or social origin, age, or religious beliefs. The minimum employment standards also prohibit human trafficking, forced labor, and child labor. To avoid any discrimination, the standards also require special attention to be paid to relevant regional minorities (for example indigenous people, migrants, or religious minorities), as well as to the protection of female employees.

The KION Group conducts a regular review of the implementation and application of the international minimum employment standards. As part of the groupwide compliance risk assessment, the Company conducts an annual local survey via the entities regarding these standards and any potential breaches in the reporting period. It is initiated at Group level and covers all KION Group entities within the scope of the corporate policy. The results of the assessment indicate areas that require improvement or special attention in order to mitigate and/or eliminate the potential risk of human rights violations. Compliance with, and the proper application of, the standards is also part of local internal audits. The selection of standards and procedures to be audited is based on a risk assessment process that is used to determine the overall risks to the KION Group.

As part of the annual compliance risk assessment, the KION Group considers the topic of discrimination and collects information locally on preventive and remedial action taken by the individual entities and at Operating Unit level. If a reported incident of discrimination is verified, remedial action must be taken. An appropriate training course was rolled out to selected functions in the reporting year to enhance awareness of the international minimum employment standards, including the prevention of discrimination.

The international minimum employment standards apply to all employees of the KION Group, including executives, members of the Executive Board, and members of the management boards of the Group companies, as well as non-employees within the definition of the companies’ own workforce. They do not apply to employees in the value chain.

All members of the workforce, especially managers and the members of the subsidiaries’ management teams, must base their actions and decisions in their area of responsibility on these principles. The management teams of each local entity and of the Operating Units are responsible for implementing the minimum employment standards, and for monitoring and enforcing compliance, including prevention and risk mitigation and prevention. They must verify the application of the standards’ principles on a regular basis and, if necessary, put effective measures in place. Violations must be eliminated and sanctioned appropriately. The management teams of the Operating Units in each region must follow up these measures in an appropriate manner. As the minimum employment standards apply to all employees, they were indirectly involved in the standards’ development through the chairman of the European Works Council.

[[The KION Group’s international minimum employment standards are available to the public on the Group’s website at www.kiongroup.com/en/About-us/Management/.]] The international minimum employment standards are also communicated to the employees via the intranet, through training courses, and by the HR department. Members of the workforce can access the policy internally in all nine standard languages of the KION Group.

Health, Safety, and Environment Statement of Intent

The HSE Statement of Intent highlights the Group’s commitment to protecting the health and safety of its employees, temporary employees, agency workers and contractors with respect to occupational health and safety. In order to meet this commitment, each entity of the KION Group is locally responsible for supporting a range of actions. These include, but are not limited to, maintaining occupational health and safety standards in accordance with the applicable requirements of the ISO 45001 standard and national legislation, setting targets and defining reporting structures, including incident investigation processes and corrective actions, providing OHS training, and engaging in regular consultations with relevant stakeholders. Although forced labor, child labor and human trafficking are not within the scope of this policy, the KION Group demonstrates its commitment to maintaining a responsible and ethical work environment by referencing the ILO Occupational Health and Safety Conventions while also endeavoring to comply with international labor standards. This link increases the KION Group’s focus on promoting a culture of safety and sustainability across its worldwide operations through the HSE Statement of Intent.

Further details on the HSE Statement of Intent can be found in the ‘Policies related to climate change mitigation and adaptation’ chapter.

Health, Safety, and Environment Standard

The KION Group HSE Standard defines minimum requirements for all KION Group locations and entities with regard to HSE matters, in addition to local regulations and the requirements of relevant ISO standards, such as ISO 45001 Occupational Health and Safety. With respect to the identified OHS-related material impacts, the HSE Standard provides guidelines regarding risk assessments and risk management, employee consultation and HSE meetings, training programs, accident management and measurement, and other relevant control systems for occupational health and safety.

Further details about this policy can be found in the ‘Policies related to pollution’ chapter.

Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

The following subchapters deal with the KION Group’s material actions related to own workforce.

Preventive actions to address potential or actual negative impacts related to occupational accidents and injuries are identified in a variety of ways, such as during HSE meetings at central or local-entity level. To prevent and mitigate negative impacts on the health and safety of the workforce, operational activities must comply with the HSE Standard, the requirements for HSE training programs must be adhered to, and the requirements under the ISO 45001 standard for a comprehensive management system must be applied at all times. The actions presented below are aimed at reducing the risk and likelihood of incidents at work, and at fostering an HSE culture and raising awareness of HSE matters.

The actions’ effectiveness is monitored and assessed using occupational health and safety targets and metrics, such as LTIFR, which provide insights into the efficacy of these OHS programs (see ‘Targets related to own workforce’ and ‘Health and safety metrics’). The HSE network supplies the necessary resources to implement the identified actions, which mainly consist of data collection systems, personnel, and relevant training at central and local-entity level.

HSE assessment 

HSE assessment is a self-evaluation tool that helps local teams to set up and improve their HSE management systems based on the KION Group HSE Standard. The tool is available to all of the KION Group’s local entities on an ongoing basis. It is used to identify gaps, evaluate performance, and identify corrective actions. The latest HSE assessment began in January 2024 and was completed in May 2024. Effectiveness is monitored and assessed by the central HSE function, and progress is measured via an annual groupwide target within the action field ‘Occupational health and safety’ in the sustainability strategy, which is broken down into internal targets for the Operating Units (see ‘Targets related to own workforce’).

Central HSE audit 

The central HSE audit is a continuous health and safety improvement scheme, based on the KION Group’s HSE Standard, which the KION Group regards as an effective and proactive HSE tool. The central HSE audit influences HSE culture within the Group and drives it forward, allowing the central HSE function to share internal experience with local sites while identifying strengths, weaknesses, opportunities, and threats. The scope of the central HSE audit includes employees, contractors, agency workers, and visitors, as well as suppliers, vendors, and customers. The result is a comprehensive audit report that is delivered to local management teams and to the Executive Board of KION GROUP AG. The audit has been a recurring event since 2010, and the KION Group strives to repeat it every two years. The central HSE audit program began in January 2024 and was completed in December 2024. Following each central HSE audit program, the effectiveness of the HSE audit is assessed on the basis of a survey in which the participating local teams responsible for the HSE audit have the opportunity to give feedback on the overall process.

KION Board OHS Award 

The KION Board OHS Award is designed to recognize and reward local entities that demonstrate outstanding achievements in the area of health and safety management. All entities within the KION Group can submit a project application, which is reviewed by the central HSE function and assessed against current and past initiatives to monitor progress and effectiveness. The annual program was revised in 2023. The award process began in September 2024 and is expected to be completed in the first quarter of 2025. The aim the program is to foster an HSE culture of best practice and continuous improvement and to raise awareness of health and safety matters throughout the entire KION Group. 

Health, Safety, and Environment training

The KION Group’s HSE Standard requires all of the KION Group’s local entities to provide HSE induction training covering a set list of relevant HSE topics. The standard stipulates that training is to be provided to all new employees and non-employees in the Group’s own workforce, as well as to contractors at KION Group sites, within their first day of joining the local entity. In addition to this, all employees, including the local management team, participate in an annual HSE awareness training course that covers a list of specific HSE matters. The purpose of the training courses is to raise awareness of HSE topics and to reduce the risk and likelihood of occupational accidents and injuries.

Targets related to own workforce 

The following subchapters deal with the KION Group’s material targets related to own workforce.

As set out in the HSE Statement of Intent, the KION Group is committed to protecting the health and safety of its own workforce. In order to implement this commitment, it is necessary to assess and continuously improve the HSE management systems of all local entities within the KION Group. To this end, the KION Group has defined targets to monitor groupwide occupational health and safety performance to help assess the effectiveness of action programs.

The targets described below cover the KION Group’s own operations at groupwide level and are defined in collaboration with the HSE heads of the Operating Units. The central HSE function proposes targets, which are agreed with the HSE heads of the Operating Units. During this phase, the HSE heads of the Operating Units consult their respective workforces to collect relevant feedback. Following the agreement, the targets are submitted to the Executive Board of KION GROUP AG for validation and to the Supervisory Board of KION GROUP AG for approval. 

The occupational health and safety performance relative to the specified targets, including an analysis of trends, is monitored on a monthly basis using a dedicated internal reporting tool managed by the central HSE function. Results are discussed in various settings, for example at the monthly HSE leadership meetings of the HSE heads of the Operating Units. The HSE network and the Executive Board of KION GROUP AG are involved in the internal reporting of HSE results. This also includes the sharing of examples of best practice and lessons learned, as well as of general potential for improvement. Furthermore, individual improvements are regularly assessed in external ISO 45001 audits and central HSE audits conducted in collaboration with local HSE representatives.

Lost Time Injury Frequency Rate

The KION Group manages the workplace accident rate using an entity-specific metric, the Lost Time Injury Frequency Rate (LTIFR). The LTIFR calculates the number of fatalities and injuries caused by work-related accidents resulting in a loss of one or more working days in relation to 1 million hours worked. The calculation uses the following formula: LTIFR = Lost Time Injuries * 1 million hours worked/actual working hours. By 2027, the KION Group aims to reduce the LTIFR by a minimum of 5 percent year-on-year, regardless of the previous year’s performance. During the period since the base year (2017: 10.3), when the initial target was defined, the LTIFR has decreased significantly in absolute terms (2024: 4.4). The specified target of a 5 percent reduction year-on-year was achieved again in 2024 (see ‘Strategy targets and target achievement in 2024’).

Certification rate in accordance with ISO 45001

The KION Group’s sustainability strategy includes the strategic aim of certifying all of the Group’s sites in accordance with ISO 45001. The ISO 45001 certification rate represents the percentage of KION Group sites that have been externally certified. In the base year 2021, 68 percent of sites had been certified in accordance with ISO 45001. The targeted strategic goal for 2024 could be nearly achieved with a certification rate of 99 percent. The KION Group has continuously increased its ISO 45001 certification rate and therefore considers progress to be in line with the initial target set (see ‘Strategy targets and target achievement in 2024’).

HSE assessment

Since the KION Group expected to achieve the ISO 45001 certification rate target in 2024, it set a new strategic target to continue addressing material impacts related to occupational health and safety. This target is for the KION Group to achieve an average score of 100 percent for compliance with the HSE Standard throughout the KION Group sites by 2027. The scope of the target therefore covers own operations at all sites across the Group. During 2024, the KION Group focused on establishing a baseline for setting the 2025 target and on further reflecting the average 2024 score (95.8 percent), as well as on achieving full participation in the HSE assessment by all sites. For this reason, no disclosure is as yet being provided regarding performance and progress against the target (see ‘Strategy targets and target achievement in 2024’).

Metrics related to own workforce

The following subchapters deal with the KION Group’s material metrics related to own workforce.

Characteristics of the employees

The KION Group collects and records employee numbers and characteristics using a groupwide HR system. Employee-specific datapoints are aggregated in accordance with the basis of consolidation for financial purposes. The KION Group reports the number of employees and apprentices based on headcount, using the actual number at the end of the financial year 2024 (December 31, 2024). The total number of employees (headcount) is cross-referenced with the number of full-time equivalents (FTE) in the section ‘Headcount’ [ESRS 1.119 a)].

The metrics for the employee characteristics include active and inactive employees of the KION Group, while apprentices, interns, and temporary student employees are not included. Apprentices were excluded from the definition of own workforce, as they cannot be considered to be employees or non-employees. However, since the KION Group does consider them to be relevant internal stakeholders, data on apprentices is provided separately.

When disclosing the rate of staff turnover and the number of employees whose employment relationship ended, the KION Group takes dismissals and retirement into account, as well as other voluntary and involuntary reasons, while intercompany transfers are excluded to avoid double counting. The KION Group uses the average number of employees over a twelve-month period (as of the last day of each month, divided by the number of months) as the denominator for the rate of staff turnover.

In 2024, the majority of the KION Group’s employees were on a permanent contract. Contracts for temporary employment were in place to cover, for example, seasonal demand, time-limited project work, temporary replacements (for example during parental leave), and probation periods.

Incidents, complaints, and severe human rights impacts

The metrics for incidents, complaints, and severe human rights impacts include incidents of discrimination and systematic harassment reported as substantiated in the reporting period as part of the annual compliance risk assessment of local entities, or that were reported via the KION Group’s whistleblowing system and substantiated by the investigative process in the reporting period, as described in the ‘Processes to remediate negative impacts and channels for own workforce to raise concerns’ chapter.

The KION Group defines complaints under ESRS S1-17 as allegations, complaints, or concerns that were reported during the reporting period, regardless of whether they were substantiated or not.

As part of the annual compliance risk assessment process, a groupwide system collected information on any incidents connected to the Group’s own workforce, including those related to discrimination, systematic harassment, and human rights violations. This annual process was initiated by Group headquarters at the end of 2024. The HR department in each Operating Unit supported and oversaw the compliance risk assessment with regard to labor rights and human rights. The data for each entity is reported internally via a questionnaire by the respective management teams and/or members of the HR department. The management team and HR department of each Operating Unit are responsible for the validation, assessment, and approval of the data and information reported for all entities in the respective Operating Unit. The Compliance Risk Assessment covers the consolidated subsidiaries as well as certain unconsolidated equity investments, which are based on the scope of the minimum employment standards policy (see ‘Policies related to own workforce’). The metrics disclosed below relate to the consolidated entities for financial reporting.

No breaches of the KION Group’s minimum employment standards came to light in 2024, and thus also no severe human rights issues in the Company’s workforce, such as child labor, forced labor, or human trafficking (see ‘Strategy targets and target achievement in 2024’). The same applies to incidents of discrimination and systematic harassment; none of the incidents of harassment documented in the whistleblowing system and substantiated in 2024 were deemed material, even where they resulted in disciplinary action.

The KION Group also collects the number of complaints related to social topics, including human rights factors and issues, formally submitted and documented via different channels. These channels include complaint mechanisms, such as the KION Group’s whistleblowing system, and can be used by employees and non-employees to raise concerns (see ‘Processes to remediate negative impacts and channels for own workforce to raise concerns’). Additional channels include the local HR department and Executive Board, the employee representatives, and the employees responsible for compliance. For the sake of completeness, the number of complaints reported as part of the compliance risk assessment is reconciled against the data from the KION Group’s whistleblowing system.

The amounts of fines, penalties, and compensation for damages as a result of these incidents and complaints, if any, are also collected via the questionnaire used in the compliance risk assessment.

The calculation of the metrics for the characteristics of the employees and for the incidents, complaints, and severe human rights impacts disclosed above was not validated by an external body other than the assurance provider.

Health and safety metrics

With respect to material impacts related to the health and safety of its own workforce, the KION Group discloses its 2024 health and safety metrics in line with ESRS S1-14, 88. Metrics to which the transitional provisions in ESRS S1-14 apply are not disclosed.

A groupwide reporting system collects occupational health and safety data from the KION Group’s consolidated subsidiaries, including incidents, working hours, management system certifications, and other health and safety metrics. This system aggregates entity-specific datapoints in accordance with the scope of consolidated entities for financial reporting. The local accident reporting processes and the occupational health and safety management system are validated by external certification bodies as part of ISO 45001 certification audits.

Additional metrics with relevant targets have been put in place to further address the ‘Occupational health and safety’ action field of the Group’s sustainability strategy. These include the LTIFR, the ISO 45001 certification rate (at site level), and the HSE assessment score (see ‘Strategy targets and target achievement in 2024’).

With respect to the HSE assessment score, the groupwide score is equivalent to the average of the individual results of the HSE assessments for all sites. These individual scores are calculated based on the level to which each site complies with the HSE Standard (see ‘Policies related to own workforce’). In the reporting year, efforts focused on setting a baseline for the average score for compliance with the HSE Standard, as well as ensuring that all sites participated in the HSE assessment. In 2024, the average score for compliance with the HSE Standard was 95.8 percent. The current difference between the actual compliance score and the complete average score of 100 percent is mainly due to new sites and to the revision of the HSE Standard in 2023. The revised HSE Standard contains new and more detailed requirements, and was still in the process of being implemented in 2024. The metric is an important tool for ensuring and monitoring full and continuous compliance with the HSE Standard at all KION Group sites.

Compared to previous reporting periods, changes in the calculation and preparation of the disclosed metrics mainly relate to different reporting scopes. The scope for the metrics on employee characteristics was modified, as it previously included apprentices but excluded inactive employees. With respect to incidents, complaints, and severe human rights impacts, the scope for incident reporting was broadened to the own workforce, which now includes additional categories of non-employees. In line with the requirements of ESRS S1-14 for health and safety metrics, the breakdown for fatalities and the types of incidents reported were also revised to include the Group’s own workforce and other workers on site, as well as all recordable occupational health and safety incidents.