ESRS E1 – Climate change

The KION Group manages the material topic of ‘Climate change’ in the context of the ‘Climate and energy’ action field.

Transition plan for climate change mitigation (E1-1)

The development of a transition plan for climate change mitigation is enshrined in the KION Group’s current sustainability strategy. The KION Group is currently formulating the transition plan in accordance with ESRS. This chapter presents the progress made toward the climate targets in 2025.

Building on the climate targets pursued since 2018 and the revised climate strategy of 2021, the KION Group committed itself in 2023 to reducing greenhouse gas emissions along its entire value chain to net zero by no later than 2050. This target definition was formally validated by the SBTi in 2024. The defined targets cover the reduction of GHG emissions in Scope 1, 2, and 3 and are enshrined in the KION Group’s sustainability strategy. Further information on the climate targets and the climate change mitigation policies can be found in the ‘Policies related to climate change mitigation and adaptation’ chapter.

Progress in 2025

The net zero strategy was refined in 2025 with the aim of achieving the medium-term climate targets with a cross-sectoral reduction pathway of 42 percent for Scope 1 and 2 by 2030. The focus was on the ongoing identification and quantification of material decarbonization levers, which were integrated more firmly into the strategic target setting process. The actions required to limit climate change are an integral element of the KION Group’s strategy and planning process.

Another key area was the quantification of interim targets for the expansion of renewable energy, including the definition of a specific target variable to be reached by 2030.

In 2025, energy intensity was added as a short-term ESG target in the variable remuneration of the KION GROUP AG’s executives and the Executive Board. For the long-term remuneration, an ESG target relating to GHG emissions (Scope 1 and 2) was set for the LTI 2024–2026 in 2024.

Material impacts and risks and their interaction with strategy and business model in relation to climate change (E1 SBM-3)

The double materiality analysis identified negative impacts and a risk in connection with climate change, including the entity-specific sub-topic ‘Energy-efficient products’, as material. The GHG emissions in connection with the impacts described below are considered to be either difficult to reverse or only reversible over the long term.

Own production and facilities (negative impact)

The KION Group has an influence on climate change through the use of fossil fuels and purchased fossil-based energy in its own operations. This includes mobile use by company vehicles and stationary use in production and in facilities. Fossil-fuel-based energy is mainly used in KION Group locations, both production sites and administrative sites, for heating and process heat and for operating vehicle fleets.

The impacts are global due to the Group’s international presence. The GHG emissions from the Group’s own operations amounted to 112 kt CO₂eq (Scope 1 and Scope 2 (market-based)) in 2025.

The KION Group’s business activities require energy, but it does not have to come from fossil sources. By taking the expected future legal, commercial, and technological changes into account, the KION Group can adapt its strategy and business model to move further away from fossil fuels and the associated GHG emissions in the future.

Primary aluminum production (negative impact)

The goods and components sourced by the KION Group contain aluminum, among other materials. The mining and processing of primary and recycled aluminum occurs in the upstream value chain and consumes energy, generating GHG emissions as a result. The impacts are global due to the Group’s extensive supplier base.

The KION Group’s business activities include the manufacturing of material handling equipment, which entails using aluminum. The use of suitable low-emission key technologies in upstream aluminum production can be an effective lever to reduce energy consumption and GHG emissions. As there are currently no alternative technologies, the corporate strategy does not include any actions aimed at substitution.

Steel production (negative impact)

Steel is an important raw material for the KION Group and an integral element in assembled parts purchased for its own production. The associated GHG emissions from steel production are generated in the Group’s upstream supply chain. However, the impacts are global due to the Group’s extensive supplier base.

The KION Group’s business activities involve manufacturing industrial trucks and material handling and lifting equipment, which requires the use of steel. The use of suitable low-emission key technologies in upstream steel production and processing can be an effective lever to reduce energy consumption and GHG emissions. As there are currently no alternative technologies, the corporate strategy does not include any actions aimed at substitution.

Purchase of pre-processed parts (negative impact)

Intermediate products made from steel, plastics, electronic parts, cables, permanent magnets, and connecting elements are important materials, components, and parts that are procured for use in the KION Group’s production processes. These pre-processed parts cause GHG emissions in the upstream supply chain. The impacts are global due to the Group’s extensive customer base.

The KION Group’s business activities involve manufacturing material handling equipment and automation solutions, which requires the use of pre-processed parts and components manufactured by suppliers. The use of suitable low-emission key technologies in the upstream production and processing of purchased intermediate products can be an effective lever to reduce energy consumption and GHG emissions along the supply chain. As there are currently no alternative technologies, the corporate strategy does not include any actions aimed at substituting these purchased intermediate products at the moment. Using pre-processed parts made with low-carbon or zero-carbon technologies would not negatively affect the strategy.

Business travel (negative impact)

Business travel leads to GHG emissions, with a negative impact on climate change. GHG emissions from business travel are part of the KION Group’s upstream value chain. The impacts are global due to the Group’s international presence.

The KION Group’s business activities rely to some extent on travel, for example visiting customers and suppliers or facilitating meetings between employees from different global locations. The KION Group encourages its employees to limit travel in order to progressively reduce GHG emissions. This goal is supported by increasing digitalization and by networking in virtual meetings and through customer showrooms.

Transportation and logistics (negative impact)

The KION Group’s business activities rely on transporting goods between locations. GHG emissions are generated by the transportation of raw materials from suppliers to KION Group locations, and the transportation of semi-finished and finished products between KION Group locations and to customers and dealers. The impacts are global due to the Group’s extensive supplier base and customer base.

As the KION Group has production sites around the world, negative impacts from transportation and logistics are mainly located in the upstream value chain. Thanks to central distribution centers and mostly short transportation routes, the KION Group operates only a small number of its own cargo vehicles that shuttle between Company locations. This means that the bulk of transportation services are provided by third parties.

Product use phase and end-of-life treatment (negative impact)

KION Group products cause GHG emissions during their use phase. While electric trucks potentially generate fewer emissions, depending on the electricity mix used, industrial trucks with internal combustion engines can be a significant source of GHG emissions, from use phase to the end of the product lifecycle. These GHG emissions contribute to climate change and its associated negative impacts and are global due to the Group’s extensive customer base.

GHG emissions from the product use phase and end-of-life phase are directly related to the KION Group’s business model. Currently, every product sold and every customer project leads to GHG emissions through energy consumption during the use phase and the treatment at the end of functional life. The Group’s strategy includes both a reduction in trucks’ energy consumption and a reduction in the number of trucks with internal combustion engines. The use of electric trucks is climate-friendly if the electricity that powers them comes from renewable sources. Furthermore, the range is to be expanded by adding alternative drive options.

This negative impact is directly linked to the KION Group’s business activities, but is located in the downstream value chain. The KION Group can prioritize low-GHG products in its product development and sales strategy, but it has no control over the use phase or the electricity mix of its customers.

Energy use (negative impact)

The KION Group consumes energy, mainly electricity, at all of its locations worldwide. While 97.2 percent of electricity used across the Group came from renewable sources in 2025 (2024: 73.8 percent), the GHG emissions generated from the purchased electricity still came to 2.7 kt CO₂eq when applying the market-based calculation method in Scope 2 (2024: 33.6 kt CO₂eq). In addition, the KION Group directly uses fossil sources of energy in its own operations, including diesel, gasoline, natural gas, and coking coal. Using these other energy sources generated approximately 105 kt CO₂eq of GHG emissions in Scope 1 in 2025. The impacts of these emissions are global due to the Group’s international presence.

The KION Group’s business activities require energy, but not necessarily fossil energy. Electricity is used to power electric appliances, electric trucks, and some heating systems. Fossil fuels are used in the Company’s vehicle fleet, in production processes, space heating, and cafeterias, and in its sold products with internal combustion engines, which are delivered to customers with fuel in the tank. The plan is to gradually switch most appliances currently operating on fossil fuels to electricity from renewable sources in the future. The switch will be scheduled in line with the assets’ planned replacement cycles and according to the availability and maturity of new technologies. The switch from internal combustion to electric vehicles, for example, is intended to coincide with the renewal of leasing agreements, and will depend on how well-developed the charging infrastructure in each region is. With regulatory, market-related, and technological changes expected in the future, the KION Group’s business model and corporate strategy could fully transition away from GHG emissions linked to fossil fuels.

Global electrification of the product portfolio (positive impact)

The positive impacts of global electrification of the product portfolio are directly linked to the KION Group’s future business performance, as demand for electric trucks and therefore the KION Group’s overall unit sales have increased significantly in recent years. Many KION Group products and services in the Industrial Trucks & Services segment are available with an electric drive system and can offer the same performance as IC trucks. This strengthens the KION Group’s competitiveness and supports the strategic focus of the product portfolio.

In light of current market trends and accelerating climate change, the electrification of more of the KION Group’s products and solutions is an integral element of the Group’s sustainability strategy and thus a long-term objective.

Ramping up the electrification of the KION Group’s products and solutions has a positive impact as energy consumed during the use phase has a material effect on the products’ GHG footprint. If the energy used to power electric trucks comes from renewable sources, it may contribute to the reduction of GHG emissions.

Selection of materials with a high carbon footprint (negative impact)

Selecting materials and goods with lower GHG emissions, it is possible to reduce the environmental footprint of KION Group products (mainly category ‘3.1 Purchased goods and services’) and the emissions from their use by customers (category ‘3.11 Use of sold products’). The KION Group has started to review the status of its product portfolio from this perspective and is working on initiating action to optimize the materials used in its products according to their carbon footprint. This impact is directly related to the KION Group’s business activities as low-GHG and net-zero-GHG products require adjustments in product development and production, as well as in the strategic management of the supply chain.

The impact of selecting materials with a high carbon footprint is especially relevant in the KION Group’s upstream and downstream business relationships. To be able to assess the GHG emissions in its upstream value chain, it is essential that the Group works closely with its suppliers and shares information and knowledge on an ongoing basis. The KION Group actively helps its suppliers to develop alternatives in order to encourage a continual reduction in GHG emissions. This has a positive impact on emissions caused by purchased materials, goods, and services pursuant to category 3.1.

Extreme weather events in the supply chain (physical risk)

The physical impacts of climate change and the increased frequency and severity of extreme weather events (storms, floods, hurricanes) due to global warming could lead to an unstable supply chain and to material shortages, which in turn could result in disruptions in the supply chain and increased material costs for purchased goods.

Resilience of the strategy and business model in relation to climate change

As part of its ‘Playing to Win’ strategy, the KION Group continuously reviews the resilience of its business model with regard to sustainability risks. To this end, scenario analyses that included climate risks were also taken into account when assessing resilience to climate change. The resilience analysis of the KION Group’s strategy and business model included transition scenarios up to 2030, 2040, and 2050 as well as anticipated financial effects, in line with the short-term and long-term decarbonization and reduction targets set. It covered all parts of the value chain (see ‘Material impacts, risks, and opportunities and their interaction with strategy and business model’).

Based on a net zero scenario in line with limiting global warming to 1.5°C, the analysis assumed that there will be a shift in demand from higher-emission to lower-emission products and services as customers seek to reduce their GHG footprint. However, the speed at which this shift takes place will vary from one region of the world to another. As a consequence, a diversified product portfolio will be needed to meet customer demands at different stages of climate transition. The analysis also assumed that internal combustion engines will be banned in certain markets, while production and sales will remain possible in other regions. These assumptions are reflected in the KION Group’s strategy to offer a broad product portfolio of trucks with high-efficiency internal combustion engines and drives that run on alternative fuels, while simultaneously pressing ahead with the electrification of the entire range.

The resilience analysis used the International Energy Agency’s Announced Pledges Scenario (APS) and a net zero scenario to estimate the development of energy markets. The APS was chosen as a more conservative approach, not focused on a 1.5°C target, to assess the impact of energy-related emissions in the event that the world’s leading regions are not ambitious enough in setting targets for their energy systems in the coming years. These estimates interact with the KION Group’s goal of achieving net zero GHG emissions by 2050 at the latest, which depends to a large extent on the availability of low-emission energy in the products’ use phase. The APS was also used to estimate carbon prices, which in turn influence the decision to invest in low-carbon technologies in the Group’s own operations.

It was presumed, based on the assumptions regarding carbon prices and the availability of low-carbon energy, and in line with the KION Group’s decarbonization targets, that currently existing and emerging technologies will be available to the extent and at the cost required to meet the Group’s Scope 1 and 2 targets by 2030. This applies to fuel consumers in the Group’s own operations, including the vehicle fleet and foundries. Assumptions were also made regarding the availability and cost of raw materials with a low GHG footprint, particularly steel products, up to 2050.

Raw materials and components are a major source of GHG emissions in the KION Group’s upstream value chain. The transformation required in the industry to supply low-carbon alternatives is still at an early stage, and therefore the market volumes are limited compared to what is required.

The transformation of the industry is expected to generate high demand for low-carbon alternatives, such as green steel, and increase competition. As a consequence, the prices of low-carbon alternatives could rise significantly in the short and medium term. Through its focus on selling low-emission products and reducing customers’ energy consumption (category ‘3.11 Use of sold products’) by shifting to a broadly electrified product and solution portfolio, the KION Group is addressing net zero requirements as part of its short-term strategy while increasing its competitiveness and stepping up the development of capacity and robust structures in the supply chain.

To assess vulnerability to physical climate risks, external science-based scenarios with high emissions, including RCP 8.5, were taken into account in order to model acute and chronic location-specific physical climate risks.

There is a degree of doubt in the resilience analysis due to uncertainties in the underlying data and models. Assumptions about future carbon prices and technologies will influence the planning of investments in low-carbon technologies, while technological changes affecting energy consumption and the energy mix will influence the anticipated reduction in emissions during the use phase of KION Group products.

In its strategies, investment decisions, and climate change mitigation activities, the KION Group addresses business activities that are not compatible with a net zero target, e.g. the manufacture of trucks with internal combustion engines, by taking appropriate action to improve their performance and climate impact. At the same time, it is focusing its business on activities that are compatible with the targets set. This two-pronged approach allows the Group to align its business strategy with climate targets while making the transition financially viable.

The results of the analysis were positive with regard to the KION Group’s ability to adapt its business model to climate change. Feasibility studies were conducted to assess the necessary action to achieve GHG reductions in line with net zero requirements. The feasibility studies showed only a limited need for investment, based on the assumption that the ability to achieve climate targets will help the KION Group to secure finance on favorable terms.

Policies related to climate change mitigation and adaptation (E1-2)

The following subchapters deal with the KION Group’s material strategic priorities in relation to climate change mitigation.

Commitment to net zero and the Science Based Targets initiative

By making an explicit commitment to achieving net zero GHG emissions along the entire value chain by no later than 2050 and setting appropriate strategic climate targets, the KION Group strives to align its targets with the Paris Agreement climate goal of limiting global warming to 1.5°C. The climate targets validated by the SBTi in December 2024 still applied in 2025. The SBTi’s net zero standard sets the minimum ambition for climate change mitigation, to which the KION Group is committed and which it has enshrined in its sustainability strategy. Energy efficiency and the use of renewable energy are elements of the roadmap toward net zero.

The commitment to the SBTi covers the Group’s Scope 1, 2, and 3 emissions, including the entire value chain, the Company’s products and solutions, and the energy used in its own operations. Responsibility lies with the Executive Board of the KION Group, in particular with the CPSO. The targets are assessed regularly (at least once a year) as part of strategy reviews, internal target setting, and progress monitoring. Progress on climate targets, action taken, and GHG emissions is reported publicly at least once a year. The KION Group’s commitment to the SBTi is available to the public at www.sciencebasedtargets.org/target-dashboard and was communicated to the Company’s employees and to customers and suppliers.

The commitment to net zero is mainly aimed at the KION Group’s employees, suppliers, customers, investors, and other stakeholders. Employees provided input and feedback on the feasibility of targets when defining the commitment. Customers and investors expressed their expectations – as part of regular stakeholder dialogue or in the context of materiality analyses, for example – of the KION Group’s climate-related targets and performance.

In addition to the ‘Climate change mitigation’ sub-topic, the commitment to the net zero target and the Science Based Targets initiative addresses aspects of climate change adaptation. No specific policy for the ‘Climate change adaptation’ sub-topic was in place for this in the upstream value chain at the end of 2025. The Group intends to formulate a policy based on the results of future risk analyses.

Health, Safety, and Environment Statement of Intent

Particularly worth highlighting in the context of climate action is the Health, Safety, and Environment (HSE) Statement of Intent’s ambition to use fewer natural resources and energy, generate less waste, and reduce the Group’s own operations’ emissions into the air, on land, and into water. This policy is linked to climate change mitigation as it aims to reduce emissions, such as greenhouse gases, into the air and the consumption of natural resources, including for power generation.

The policy covers all Scope 1 and 2 emissions without exception. However, Scope 3 emissions are not within the scope of this policy. Responsibility for this policy lies with the Executive Board of KION GROUP AG, in particular with the CPSO. Data on energy use, GHG and pollutant emissions, and waste generated is published on the KION Group website as part of reporting.

The HSE Statement of Intent is binding for the entire KION Group, including employees, non-employees, and external workers not directly employed by the Company. Employees were directly involved in the development of the policy via representatives (OU HSE heads), while other stakeholder groups were taken into account through their respective departments. The HSE Statement of Intent is reviewed regularly, at least annually, by Corporate Sustainability & HSE and other relevant stakeholder functions, and revised where required.

The policy is provided to employees during their induction, displayed on the organization’s notice boards, and communicated via the intranet. A copy of the policy statement must be made available upon request to any employee, customer, contractor, auditor, or regulatory authority.

The HSE Statement of Intent is also available to the public on the KION Group’s website at www.kiongroup.com/sustainability.

Strategic focus on increasing the proportion of renewable energy

Increasing the proportion of renewable energy helps to reduce Scope 1 and 2 GHG emissions and is thus linked to climate change mitigation and a reduction in energy use. The KION Group has pursued this strategy since 2023 with the aim of increasing the proportion of renewable energy in the total energy used in the Group’s own operations and at its sites within Scope 1 and 2. The CPSO is responsible for the monthly tracking of energy consumption and GHG emissions, with the results also published in external reporting (see ‘Strategy targets and target achievement in 2025’).

The KION Group aims to align its strategy with the needs and requirements of affected stakeholder groups along the entire value chain. The input and feedback of employees on the feasibility of targets, including suggested schedules for implementation and support for initiatives, were taken into account during development. Customer requirements are also indirectly factored into this strategic development. Further information on the strategy is available to the public on the KION Group website at www.kiongroup.com/sustainability and is communicated internally to employees.

The product development process in the Industrial Trucks & Services segment

The innovative product development process (iPEP 2) is a framework for product development along the entire value chain in the Industrial Trucks & Services segment. Key elements are the definition of roles and process stages, plus integrated project planning. The main idea is to tailor the process to a specific project. Every project has specific parameters and requirements, such as the need for sustainability, that must be taken into account in project management.

The Chief Technology Officer (CTO) on the KION GROUP AG’s Executive Board is responsible for iPEP implementation. The policy undergoes regular internal checks through which requested changes are approved, rejected, or revised. After approval, all changes undergo the same implementation phase, during which they are tested, communicated, and incorporated into the process.

The policy mainly affects product development, but other functions such as product management, quality assurance, operations, procurement, controlling, and service are also involved. It was developed with input from all affected stakeholders and underwent a process evaluation as part of the KION Product Development Optimization change initiative. Every iPEP user can request changes and a review of the process, which is then evaluated according to the proposed change. The policy is available on the intranet and communicated to the workforce by the communications department.

Actions and resources in relation to climate change policies (E1-3)

With regard to its Scope 1 emissions, the Group has begun to progressively replace vehicles that have an internal combustion engine with electric vehicles in its fleet of company cars and service vehicles in recent years. With its commitment to the net zero targets, the SBTi targets, and the targets for absolute GHG reduction by 2050, the Group expects to complete this action by 2040. The Group intends to press ahead with its transition plan in 2026.

Progressive electrification of the fleets of company cars and service vehicles is not currently feasible across the entire Group due to country-specific restrictions, such as supply bottlenecks in vehicle production and inadequate charging infrastructure. Overall, the aim is the full electrification of KION’s own vehicle fleet in the upcoming years. A subsidiary in Brazil started to switch to bioethanol as a short-term solution for reducing GHG emissions from gasoline consumption. This action is linked to the strategic targets of the ‘Climate and energy’ action field to increase the proportion of renewable energy used and achieve an absolute reduction in GHG emissions for the Group. In the context of Scope 1 GHG emissions, this represents a decarbonization lever through the use of renewable energy sources in the Group’s own operations. The proportion of bioethanol used to fuel the subsidiary’s own fleet vehicles in Brazil was further increased in 2025.

The proportion of electricity from renewable sources used by the KION Group was already 97.2 percent in 2025 (2024: 73.8 percent), while the total share of renewable energy used in the Group’s own operations was 29.2 percent. Due to the organization’s global footprint, the large number of sites, and the existing contractual instruments, it is not always possible to source green electricity directly through power purchase agreements (PPAs) or local electricity contracts. Starting in 2026, further long-term PPAs are to be added in stages to further increase the proportion of renewable energy and thus reduce Scope 2 emissions. In 2025, the KION Group made use of Energy Attribute Certificates (EACs), in addition to existing contractual instruments for purchasing renewable electricity, in order to increase the proportion of renewable electricity and reduce Scope 2 emissions as soon as possible. The purchase of the EACs took place in December 2025. The retirement of the EACs for the year 2025 was commissioned at the beginning of 2026 retrospectively for the reporting year, with the requirement that the retirements be completed by the date of the report. However, the evidence of the retirement of the certificates was not yet fully available at the date of the report. As a result, Scope 2 emissions (market-based) were reduced from originally 36.7 kt CO2eq by 29.2 kt CO2eq to 7.5 kt CO2eq through the retirement of the EACs, and therefore, almost all of the electricity used by the KION Group was from sustainable energy sources. The contractual agreements for the purchase and sale of green electricity related solely to purchasing electricity.

The KION Group embarked on this action, which was proposed in 2024 and started as planned in 2025, as part of its sustainability strategy and its commitment to the SBTi. The Company continues to pursue the target of completely switching to green electricity by 2030.

Suppliers of the KION Group that are responsible for at least 5 percent of annual GHG emissions from purchased goods and services (Scope 3.1) are to have SBTi-aligned decarbonization targets in place by 2030. The active involvement of suppliers and the corresponding actions are linked to the commitment to net zero targets and SBTi targets, and to the guidelines on climate change mitigation that apply to suppliers. A base year of 2023 was set for these targets.

Actions related to energy-efficient products (entity-specific)

The KION Group is working on collecting supplier-specific data in order to improve the underlying data. With this in mind, it launched a project in 2024 aimed at reducing emissions in procurement, which relates to the entity-specific sub-topic ‘Energy-efficient products’. The project is designed to help the global procurement team to reduce greenhouse gas emissions in category ‘3.1 Purchased goods and services’ by calculating, analyzing, and actively reducing GHG emissions of purchased goods and services. The focus is on direct tier 1 suppliers worldwide in the KION Group’s upstream value chain. These are suppliers who have a direct business relationship with a KION Group entity. Direct suppliers are those who supply materials and goods that are used in the KION Group’s production, either directly or as intermediate products.

Building on last year’s feasibility study and the pilot workshops that were conducted with selected suppliers, the insights gained were used in the reporting year to further integrate GHG emissions considerations in key procurement processes. This includes embedding GHG emissions in the strategies for material groups, the supplier scorecard, and the tendering procedure on the Group’s own procurement platform. The KION Group has also taken the first actions aimed at achieving the aforementioned SBTi decarbonization target for Scope 3.1. To this end, affected buyers have been trained and selected suppliers have been contacted to discuss a dedicated SBTi target and the decarbonization strategy for suppliers.

Another key topic in 2025 was boosting emissions data transparency. Following on from the pilot workshops, additional workshops were held with suppliers. Using the insights from the feasibility study and the workshops, a material group-specific buyer’s guide was prepared that provides a detailed analysis of the GHG structure within the individual categories and highlights potential actions for reducing GHGs. It also provides a summary of the insights on the supplier portfolio obtained in the workshops. A carbon management and accounting software platform was chosen and implemented in the reporting period to aid the management of GHG emissions going forward.

As part of the KION Learning Academy, the KION Group developed a comprehensive, multi-level online training program for the workforce in 2025 that focuses on lifecycle assessments (LCAs). It covers basic training on the fundamental principles of the ISO 14040 and 14044 standards, plus advanced training that provides a more detailed insight into the various steps of the LCAs. The aim of the training is to expand knowledge about LCAs, support teams in sustainable decision-making, and reinforce environmental awareness within the Company. The LCA basic training is open to all interested employees, including those who do not directly work on sustainability. In contrast, the advanced training is aimed at technical experts, especially those who work in product development. Furthermore, LCA experts assist the affected internal stakeholders. This means that new insights from the LCAs can be factored into product development at an early stage and product developers gain the knowledge that they need to make informed decisions about the selection of materials and the lifespan of components.

In the ITS segment, the Energy Toolbox was introduced in 2025 as a new sales tool for the KION Group and its sales partners. Specialized apps are available for the electric forklift solutions of both the Linde and STILL brands. These apps allow different truck and vehicle configurations to be systematically compared in order to identify the right solutions for customers’ specific requirements. Key features include an energy consumption calculator and a carbon emissions comparison tool. In this way, the two apps provide targeted support for the deployment of electric forklift solutions that directly help to reduce emissions – especially carbon emissions – and allow customers to make informed decisions based on environmental impact and total cost of ownership. This offering underscores the KION Group’s commitment to climate-friendly technologies and the responsible use of resources.

Since the initial versions were launched in February 2025, user numbers have continuously increased. Plans are already in place to refine and regularly update the apps.

In June 2025, the KION Group received its first carbon footprint certificate in accordance with ISO 14067 for the Linde N20 order-picker truck with lithium-ion batteries. The certification covers the entire product lifecycle and was granted by an accredited certification body. This action enables transparent communication of environmental impacts and promotes continuous improvements in sustainability.

Further information on the resource-efficient design of products can be found in the ‘Resource use and circular economy’ chapter.

The KION Group’s decarbonization levers

Switching to alternative fuels is the most important decarbonization lever in the KION Group’s own operations. Diesel and gasoline consumption in the vehicle fleet (mainly company cars and service vehicles) accounts for a large proportion of energy consumption and emissions in the Group’s own operations. By switching its fleet to electric, the KION Group can benefit from electric vehicles’ lower energy consumption and further reduce GHG emissions from transportation as a result of switching to electricity from renewable sources.

Another source of GHG emissions are the KION Group’s two foundries, which use coking coal. The KION strategy envisages powering the foundries only with electric arc furnaces. Natural gas consumption for space heating and process heat, such as the furnaces used in manufacturing, can be addressed by switching to technologies such as heat pumps for space heating and electric furnaces in manufacturing. The KION Group aims to develop an action plan – based on the net zero targets – for implementing the strategy.

Combined with switching to other fuels, the use of renewable energy is another key decarbonization lever for the KION Group’s business activities. In 2025, the proportion of renewable energy used in the Group was 29.2 percent. The proportion of renewables in total energy consumption can be significantly increased through the electrification of all processes for which alternative technologies are potentially available. Where electrification is not feasible in the medium term, alternative renewable fuels such as bioethanol or green hydrogen could provide an alternative.

Emissions from the product use phase in the Industrial Trucks & Services operating segment accounted for 74.0 percent of the KION Group’s total GHG footprint in 2025 (2024: 66.7 percent). Although the proportion of sold trucks with internal combustion (IC) engines was only 7.4 percent (2024: 8.5 percent), they account for 36.2 percent of GHG emissions in the product use phase (2024: 37.7 percent). Further reducing the proportion of IC trucks will help to reduce GHG emissions and meet the Group’s climate targets.

More than 50 percent of the KION Group’s total GHG emissions in 2025 were attributable to the use phase of electric products and solutions sold to customers. In order to reach the net zero target, it is necessary to lower these emissions too. The corporate strategy therefore involves increasing the energy efficiency of products by improving battery technology and using high-efficiency batteries, such as lithium-ion cells, to reduce energy consumption. Furthermore, the KION Group is working closely with its customers to increase the proportion of renewables in their electricity mix. The KION Group aims to develop an action plan – based on the net zero targets – for implementing the strategy. ‘Purchased goods and services’ (category 3.1) represented 17.4 percent of the KION Group’s total GHG emissions in Scope 1 to 3 in 2025. As part of its overall decarbonization strategy, the Company plans to work with its suppliers on reducing GHG emissions. This includes increased material efficiency, switching to alternative materials, increased use of recycled materials, and technological solutions to decarbonize production processes for energy-intensive products like steel. The KION Group aims to develop an action plan – based on the net zero targets – for implementing the strategy. Further details can be found in the ‘Actions related to energy-efficient products (entity-specific)’ section. Beyond this, the KION Group had not taken any specific action related to the ‘Climate change adaptation’ sub-topic in the upstream value chain by the end of 2025.

In 2025, the KION Group continued to have capital expenditure and operating expenses in connection with actions and policies relating to climate change. The new KION Regional Distribution Center Central Europe in Kahl, Germany, was constructed in accordance with the gold standard of the German Sustainable Building Council (DGNB). Opened in May 2025, it includes a photovoltaic (PV) system and a system for collecting rainwater for industrial use. Further PV systems were expanded at some KION Group sites. The sites were chosen partly because of their strategically favorable position, which facilitates the planning of efficient transportation routes and thereby reduces both energy consumption and transportation-related GHG emissions.

To meet its strategic targets related to climate change mitigation and adaptation, the KION Group intends to continue investing in this area in the future, although the exact timing and extent are still to be determined. A transition plan is expected to provide greater detail in 2026 with the aim of closing any gaps in policies and actions relating to identified impacts, risks, and opportunities, and the reporting thereof.

Targets related to climate change mitigation and adaptation (E1-4)

The KION Group calculates and controls its GHG emissions based on the international Greenhouse Gas Protocol (GHG Protocol). Where it is technologically possible, the GHGs covered are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride.

Given the climate targets, in particular the net zero target, the disclosures on target achievement, and the formal validation by the SBTi in 2024, the KION Group decided to deviate – as it had the previous year – from ESRS 1.62 and the principle of financial control. Instead, the Group will persist with its chosen approach of operational control in accordance with the GHG Protocol for categories Scope 3.11 (‘Use of sold products’) and Scope 3.13 (‘Downstream leased assets’) and continue to consistently apply this method of reporting in this Group sustainability report.

All of the aforementioned GHG targets are gross targets and do not include negative GHG emissions, carbon offsetting, or GHG emission avoidance as a means of achieving GHG emission reduction targets. Starting from the base year of 2021, the GHG emission reduction targets aim to limit global warming, on a cross-sector pathway, to 1.5°C compared with pre-industrial levels. The assessment excludes any GHG emission reductions before 2020. The KION Group considered a net zero scenario as well as one based on pledges announced to date.

Absolute reduction targets for Scope 1 and 2

The KION Group has set itself the target of reducing Scope 1 and 2 GHG emissions by at least 90 percent by 2050, starting with 2021 as the base year (baseline value: 149,359 t CO₂eq). The near-term target for 2030 is an absolute reduction of 42 percent. The baseline for the Scope 1 and Scope 2 reduction target relates to GHG emissions from direct and indirect energy consumption in the KION Group’s own operations. Emissions from customers’ use of leased products over which the KION Group retains beneficial ownership (financial control) as the lessor (operating lease agreements) are classified as Scope 3 emissions in line with the operational control approach of the GHG Protocol and are thus not part of the reduction target for Scope 1 and 2.

The target has a scientific basis and covers all Scope 1 and 2 emissions that are under the operational control of the KION Group within the meaning of the GHG Protocol. For the purposes of setting and achieving targets for GHG emissions, the KION Group uses the market-based method as the basis for the calculated Scope 2 GHG emissions. The KION Group set the target using the SBTi net zero framework and the detailed methodology sheets. The Science Based Targets initiative (SBTi) is an organization that helps companies to set climate targets. The methodology set by the SBTi is widely accepted, and the climate targets of the KION Group, developed in accordance with this methodology, were formally validated in 2024. The SBTi’s methodology is subject to inherent uncertainties with regard to the underlying research findings and forward-looking assumptions about the reduction of GHG emissions needed to achieve the 1.5°C target. The SBTi methodology, which was published in 2021, is currently being revised. New research-based insights into the progress of climate change could lead to the revision of the SBTi methodology and of the assessment of whether the target levels are sufficient to limit global warming to 1.5°C. The KION Group will adjust its target accordingly if the SBTi methodology changes.

When defining the basic assumptions for GHG emission reduction targets, the KION Group considered future developments that could potentially influence its GHG emissions and its efforts to reduce them: Company growth and a rise in unit sales would lead to an increase in energy consumption and emissions along the value chain. The switch to electric vehicles, the decarbonization of global electricity grids, rising carbon taxes, and the availability of technologies such as green steel and electric arc furnaces would help the KION Group to reduce the emission intensity of its activities.

The KION Group has taken the following actions to ensure that the baseline value is representative:

• The KION Group used emission factors from the same sources. Where methodologies or emission factors were changed, the base year was recalculated using the same methods.

• Adjustments to the organizational boundaries accounted for less than 5 percent of changes in the GHG inventory.

• The base year of 2021 is considered representative for the KION Group’s business activities in the years since. This was formally validated in the SBTi’s assessment of the reduction targets.

With regard to sustainability matters between now and 2030, the same base year of 2021 will be used for comparative analyses across the Group. The KION Group will choose a base year no more than three years before the first reporting year of the new target period when defining new targets. From 2030 onward, the Group will update its base year every five years.

Absolute reduction target for Scope 3

The KION Group’s absolute reduction target for Scope 3 emissions was set using the SBTi methodology. It envisages a reduction of at least 25 percent by 2030 and, in the long term, a reduction of no less than 90 percent across Scope 3 by 2050; the focus here is on category ’3.11 Use of sold products’. According to the operational control approach, category 3.11 includes GHG emissions generated during the use of products leased downstream as part of the KION Group lease business. The base year is 2021 with a baseline value of 19,764,107 t CO₂eq. The SBTi formally validated 2021 as the representative base year for the KION Group, based on historical data and expected future growth. The net zero target covers 100 percent of the KION Group’s Scope 3 emissions and the near-term target, that includes category 3.11, covers 83 percent of Scope 3 emissions. If the SBTi methodology is updated, the KION Group agrees to adjust its target accordingly. Affected stakeholders were involved in setting the target. Customers and investors were interviewed about their expectations regarding the KION Group’s climate targets, while internal stakeholders were consulted about the feasibility and timeline of necessary action.

Currently, the Group is pursuing the strategic objectives of conducting more lifecycle assessments for products and obtaining Cradle to Cradle certification for selected products. LCAs are an essential source of information used to define GHG emission reduction targets as part of the KION Group’s commitment to the SBTi framework. They provide an overview of the environmental impact of KION products, including their carbon footprint. This kind of information is increasingly requested by customers and essential when it comes to countering the negative impact of the selected materials on the environment.

The KION Group is currently pursuing the cradle-to-cradle processes with the aim of obtaining the Environmental Protection Encouragement Agency (EPEA) certificate. A cradle-to-cradle analysis complements the LCA by assessing the effectiveness of processes in terms of their sustainability. It assesses the safety, circularity, and sustainability of a product across five categories with regard to sustainability performance. The KION Group aims to align its products more closely with its customers’ sustainability-related expectations by implementing the cradle-to-cradle principle in its processes.

The strategic objectives relating to LCAs and Cradle to Cradle certification form a solid basis for the development of specific targets directly linked to the IROs in question. The future direction of both projects and the feasibility of achieving these targets were defined in greater detail in 2025, thus providing a robust basis for setting and implementing specific targets in a timely manner.

No target was defined for the ‘Climate change adaptation’ sub-topic in 2025 in relation to Scope 3 GHG emissions in the upstream value chain.

Monitoring strategic target achievement

The KION Group regularly participates in established ESG ratings to ensure maximum transparency and comparability. Consequently, the S&P Global Corporate Sustainability Assessment (CSA) and EcoVadis are firmly integrated into the KION Group’s strategic targets. With regard to decarbonization, the KION Group also submits to an annual assessment of its targets via the Carbon Disclosure Project (CDP). The results of these ratings are validated and potential for improvement is actively pursued.

Reduction in energy intensity

The KION Group aims to systematically reduce its energy intensity, which is measured as the ratio of energy consumed to revenue. This can help to reduce GHG emissions and the use of natural resources. The calculation is based on the Group companies’ total consumption of all energy sources divided by consolidated revenue. The underlying metric has no external scientific basis; it is an internal Group metric. Internal stakeholders were actively involved in the definition of relevant key performance indicators and actions, with a particular focus on the feasibility and the timeframe of the necessary actions. A groupwide system for the continuous tracking of energy consumption was established to facilitate target implementation and monitoring. The relevant metrics of energy consumption and revenue are reported annually and provide the basis for further action to drive target achievement.

Proportion of electric trucks sold annually (Industrial Trucks & Services segment)

The KION Group plans to establish a portfolio focused on electric drive systems, including battery-powered and fuel cell-powered products, by increasing the proportion of electric trucks sold annually. Given the positive trend, starting with a baseline of 85.0 percent in the year 2019, the KION Group decided in 2024 to increase the previous target from 90 percent to 92 percent, to be achieved by 2027.

The target is calculated as the proportion of electric products (including fuel cells and other electric technologies) ordered annually in the Industrial Trucks & Services segment (in terms of units in new business).

This target relates to the GHG emission reduction target in the KION Group’s commitment to the SBTi framework and to the IRO ‘Global electrification of the product portfolio’. The target was defined in collaboration with the relevant departments and Operating Unit representatives who are responsible for the ‘Product and solution sustainability’ action field. The adjusted target was then approved by the Executive Board of KION GROUP AG.

Metrics related to climate change

In the context of climate change, the metrics for energy consumption, GHG emissions, energy mix, and energy intensity and the entity-specific metrics for energy-efficient products are presented below. The methods and significant assumptions are explained in this context, as are, where appropriate, the estimates and outcome uncertainties. Furthermore, information is disclosed on greenhouse gas removal, on greenhouse gas reduction projects financed through emission allowances, and on internal carbon pricing.

Metrics for energy consumption, energy mix, and energy intensity (E1-5)

Energy-related metrics are determined in the same way as GHG emissions. Energy data for the KION Group’s own activities is primarily calculated and controlled in line with the definition of the Company for the purposes of calculating GHG emissions in accordance with the GHG Protocol and the operational control approach. This approach for GHG emissions is in line with the attribution of energy consumption in the KION Group that is relevant to climate targets and the commitment to the SBTi.

To calculate energy data, the KION Group uses conversion factors of ‘UK Government GHG Conversion Factors for Company Reporting’ (Department for Energy Security & Net-Zero [DESNZ], 2024). The factors used were selected due to their scientific basis, reliability, and widespread acceptance in international reporting standards.

Results are subject to a degree of uncertainty due to potential errors in the capture of subsidiaries’ consumption figures for all relevant energy sources, including due to missing measurement data.

To determine energy intensity in climate-intensive sectors according to ESRS, the NACE classification system was used to identify the energy-intensive sectors of relevance for the KION Group. Entities in the KION Group were assigned the relevant NACE codes. The KION Group operates in the following energy-intensive sectors according to ESRS, which were included in the calculation of energy intensity:

• NACE Code 46 Wholesale trade, except of motor vehicles and motorcycles

• NACE Code 28 Manufacture of machinery and equipment n.e.c.

• NACE Code 52 Warehousing and support activities for transportation

• NACE Code 27 Manufacture of electrical equipment

Metrics for greenhouse gas emissions (E1-6)

Metrics for GHG emissions and entity-specific metrics for energy-efficient products are presented below in accordance with ESRS E1-6.

GHG emissions for Scope 1, Scope 2, and Scope 3 are always calculated in line with the standards of the Greenhouse Gas Protocol. The calculation takes entities under financial control into account, including financially immaterial subsidiaries and those under operational control.

The subsidiaries’ GHG emissions are recorded, reported, and reviewed annually while taking the threshold values set at Group level into account. Compared with 2024, there are no material changes in the definition of the KION Group business units to be included or its upstream and downstream value chain for 2025.

When calculating or reporting greenhouse gas emissions, the KION Group does not use any information from entities in its value chain that have a different reporting period.

Scope 1 greenhouse gas emissions

Emissions from stationary combustion, such as through the use of heating systems, process heat, furnaces, and generators, are calculated on the basis of the amount of fuel consumed. GHG emissions from mobile combustion result from the fuel used by company vehicles and forklift trucks on the KION Group’s sites. Emissions are calculated based on the volumes of fuel recorded.

The KION Group uses the latest version of DESNZ’s conversion and emission factors to calculate Scope 1 GHG emissions. The emission factors used were selected due to their scientific basis, reliability, and widespread acceptance in international reporting standards.

Scope 2 GHG emissions

Scope 2 GHG emissions are calculated on the basis of the purchased electricity, heat, and cooling consumed at production sites and in administrative buildings. The KION Group reports Scope 2 GHG emissions under the location-based and the market-based approach.

Location-based emissions are calculated on the basis of average regional emission factors from the ecoinvent database. Market-based GHG emissions are calculated on the basis of contracts and information from suppliers about emissions. At sites with power purchase agreements (PPAs) and guarantees of origin, the specific energy sources are used. Otherwise, the data is based on supplier-specific information from power purchase agreements. In a few cases, no information on energy sources is available, so information on the residual electricity mix at the site is used. This is based on data from the European Residual Mix published by the Association of Issuing Bodies (AIB) and on emission factors from the ecoinvent database, which provide detailed information on the composition of regional energy mixes. The KION Group uses the latest version of DESNZ’s emission factors to calculate GHG emissions from purchased heat. The emission factors used were selected due to their scientific basis, reliability, and widespread acceptance in international reporting standards.

In 2025, 97.2 percent of electricity purchased by the KION Group came from renewable energy sources (2024: 73.8 percent). 65.8 percent (2024: 45.5 percent) was purchased using unbundled and 31.4 percent (2024: 21.5 percent) using bundled guarantees of origin (21.1 percent from PPAs (2024: 15.5 percent) and 10.3 percent (2024: 6.0 percent) from retail contracts for renewable energy). There are no guarantees of origin for the remaining 2.8 percent of purchased electricity (2024: 33.0 percent).

Significant Scope 3 GHG emissions

The KION Group carried out a GHG materiality analysis to determine the relevant Scope 3 categories. This analysis is updated in the event of significant organizational changes and is carried out in accordance with the KION Group’s internal guidelines for calculating emission data. The following categories are not currently considered in detail in the calculation of Scope 3 GHG emissions, as they were not deemed material: ‘3.8 Upstream leased assets’, ‘3.9 Downstream transportation and distribution’, ‘3.10 Processing of sold products’, and ‘3.14 Franchises’. The category ‘3.13 Downstream leased assets’ is not disclosed separately; instead, it is reported, together with sold products and solutions in category ‘3.11 Use of sold products’, over the entire time horizon using a uniform calculation method. This approach is based on the assumption that the usage and lifetime of both product types will not differ materially over the relevant time period.

To ensure that they are up to date and sufficiently detailed, the emission factors for categories 3.1, 3.2, and 3.4 were obtained from specialist provider ‘ctrl+s’ using the ‘matter+s’ database version 2.2 (2025). Other sources include the ‘UK Government GHG Conversion Factors for Company Reporting’ (DESNZ, 2025), which form the basis of the calculations in categories 3.3 (direct energy sources upstream), 3.6, 3.7, 3.11, 3.12 (for diesel, LPG, and CNG), and 3.13.

The ecoinvent database provides emission factors for categories 3.11 and 3.13 (location-based electricity emission factors), for non-recycled materials in category 3.5, and for upstream emissions from purchased indirect energy and for transmission and distribution losses in category 3.3. The database used was ecoinvent version 3.11 (2024).

Factors from the Exiobase database version 3 (2021) are used in the calculations for category 3.15.

Sources of estimation and outcome uncertainty

The calculations under categories ‘3.1 Purchased goods and services’, ‘3.2 Capital goods’, ‘3.4 Upstream transportation and distribution’, and 3.6 ‘Business travel’ are based on secondary data and are therefore subject to inherent uncertainty. Supplier-specific figures are not currently available, which is why average emission factors for the industry were used. The KION Group is working on successively collecting supplier-specific data in order to improve the underlying data for key areas of spending.

The way in which gaps in the data are managed adds a further element of uncertainty to the estimates. There is a lack of robust data for individual periods, Group companies, and procurement categories, so the data is extrapolated using average values.

No primary measurement data is available for the category ‘3.7 Employee commuting’. Instead, statistical figures – which vary by region – are used in order to estimate emissions from KION employees’ commuting. These figures are based on averages from relevant surveys and can only approximate the actual emissions.

The following calculation methodologies apply in relation to category ‘3.11 Use of sold products’. The calculation of emissions in the Supply Chain Solutions segment is generally subject to a high degree of uncertainty due to project-specific differences in components and energy consumption. An average energy consumption figure for a number of reference projects was therefore determined through an analysis of projects. This figure has a high degree of uncertainty, as it is mainly based on assumptions and only includes projects in the EMEA region. There is also a lack of primary data on the electricity mix of customers, which is why national-average grid electricity factors are used (location-based). Taking a conservative approach, the current location-based electricity mix is applied for the entire use phase (lifetime emission factors), which adds uncertainty as potentially decreasing or increasing grid electricity factors are not taken into account. Furthermore, breaking the energy use in reference projects down to a revenue-based average value is a major simplification that entails a high degree of uncertainty.

In the Industrial Trucks & Services segment, material uncertainty stems from the estimated operating hours of the equipment, which can vary considerably depending on how and where the equipment is used. Further uncertainty stems from estimates of lifetime electricity consumption. As there is no primary data on the electricity mix of customers, national-average grid electricity factors are used (location-based). Taking a conservative approach, the current location-based electricity mix is applied for the entire use phase (lifetime emission factors), which adds uncertainty as potentially decreasing or increasing grid electricity factors are not taken into account. As a data source, WITS gives rise to uncertainty due to the time lag. This is because these statistics reflect global order intake, and the number of trucks ordered is not based on the actual time of delivery to the customer. Overall, this time lag is negligible when it comes to calculating the GHG footprint.

In the calculations for category ‘3.12 End-of-life treatment of sold products’, the end-of-life emissions per truck category in the Industrial Trucks & Services segment are based on modeled average figures that are taken from the lifecycle assessment for the relevant truck category.

Truck-specific end-of-life GHG emissions therefore cannot be disclosed precisely. There is no primary data in the Supply Chain Solutions segment, which is why end-of-life GHG emissions are extrapolated from revenue-based data in the Industrial Trucks & Services segment.

No primary data is available for GHG emissions from investments in assets and from equity investments under category ‘3.15 Investments’. Instead, industry-specific Scope 1 and Scope 2 emission factors are used to extrapolate from the relevant prior-year revenue.

This approximation does not reflect the companies’ specific activities, but represents a statistical average value for the respective industry.

Disclosures on greenhouse gas removal, on greenhouse gas mitigation projects financed through carbon credits (E1-7), and on internal carbon pricing (E1-8)

In 2025, the KION Group set up an internal carbon pricing scheme to help it to achieve the groupwide net zero greenhouse gas targets. This scheme is based on an internal carbon fee that serves as an offset mechanism between the Operating Units.

The goal is to achieve the reduction targets for Scope 1 and Scope 2 emissions in each reporting period and create an incentive for avoiding future spending on fees. The pricing scheme applies to emissions from electricity consumption (Scope 2) and covers all consolidated subsidiaries worldwide. The underlying carbon price is based on the spot market price at the time that Energy Attribute Certificates (EACs) are purchased. This means that the Group’s approach is aligned with and approximates market prices, reasonably reflects actual costs, and encourages decision-making based on energy efficiency and a reduction in greenhouse gases. The Scope 2 emissions volume covered by the CO2 pricing mechanism, based on the purchased green electricity certificates, amounted to 16,803 t CO2e for the Group in fiscal year 2025; this corresponded to a share of 46.9 percent of total Scope 2 emissions before taking this reduction into account.

The KION Group did not purchase any carbon credits in 2025. In the course of validating its climate targets, the KION Group decided to not communicate claims of GHG neutrality.

Entity-specific metrics for energy-efficient products

With respect to the material impacts and opportunities related to energy-efficient products, the KION Group discloses the entity-specific metric ‘proportion of electric vehicles sold’ for the Industrial Trucks & Services segment. The metric is linked to the respective strategic target and reflects both the potential positive impacts on downstream GHG emission reductions and the opportunities associated with a highly electrified product portfolio. In the reporting year, the proportion of electric vehicles sold in the Industrial Trucks & Services segment amounted to 92.6 percent (see ‘Strategy targets and target achievement in 2025’).

The calculation is based on the number of units in the order intake documented on a monthly basis for new business and is considered representative of the number of trucks sold. This involves determining the number of trucks ordered with an electric drive as a proportion of the total order volume in the Industrial Trucks & Services over the year as a whole. Order intake data is reported by the regional subsidiaries and brands across the Group, and software is used to consolidate it in the course of market research analyses. The industrial trucks ordered are divided into product categories according to the World Industrial Truck Statistics (WITS) of the Fédération Européenne de la Manutention (FEM), and the volume of electric trucks ordered is determined on the basis of these categories.