Impact, risk, and opportunity management (IRO-1)

The following overview shows the ESRSs specific to the KION Group and the topics and sub-topics identified on the basis of the double materiality analysis:

Description of the process to identify and assess material impacts, risks, and opportunities

The KION Group has considered and assessed environmental, social, and governance matters in accordance with the principle of double materiality, which includes the environmental and social impacts of the KION Group’s business activities (inside-out) as well as the financial risks to and opportunities for (outside-in) the KION Group’s business activities. The DMA is based on the differentiation between material and non-material IROs. The approach to identifying and assessing them is described below.

A comprehensive process for identifying and assessing the material IROs was carried out in 2024.

In 2025, the DMA process was revised to ensure that it aligns with the metrics for the risks’ financial effect and likelihood of occurrence that were redefined in the KION Group’s risk management system. This gave rise to higher threshold values for the financial dimension and the impact dimension, thus allowing for a greater focus on material topics. The IROs were subsequently reassessed using a more granular scale and the adjusted threshold values. Based on this reassessment, the ‘Microplastics’ sub-topic in the ESRS E2 Pollution standard and the ESRS E3 Water and marine resources standard were no longer classified as material. Furthermore, the overall number of material IROs in the other topics decreased. As in 2024, ESRS E4 Biodiversity and ecosystems, S3 Affected communities, and S4 Consumers and end-users were not classified as material topics. Because the KION Group did not identify any material changes to its business model or its value chain in 2025 that would have led to the identification of new IROs, it decided not to perform a full reassessment. The DMA process for 2025 is thus based on the IRO list from 2024.

The DMA covers the business model of the KION Group and its two operating segments Industrial Trucks & Services and Supply Chain Solutions, both in terms of its own operations and along the entire value chain.

The KION Group has defined the following value chain stages for the identification of material IROs: upstream (which includes suppliers, raw materials, and other inputs), own operations, and downstream (which covers distribution, sales, product use, and end-of-life handling). The identified IROs were categorized and assessed according to the respective value chain stage.

To identify potential and actual IROs, the DMA covered all sustainability matters listed in ESRS 1 Application Requirement (AR) 16. It also included a benchmark analysis, the results of previous DMAs, and the KION Group’s sustainability reports to date. Furthermore, external sources such as sector-specific trade literature were analyzed and interviews with selected stakeholders, including suppliers, customers, and investors of the KION Group, were carried out.

Various relevant stakeholder groups were directly and indirectly involved in the initial IRO identification phase. Based on existing business relationships, tailored interviews were held with customers and suppliers in the different Operating Units and regions and with investors, which are also an important stakeholder group (see ‘Interests and views of stakeholders’).

Within its own operations, the interests of the consolidated and unconsolidated subsidiaries of the KION Group were represented by the sustainability leads and working groups and also by the Operating Unit sustainability leads. Interviews were also conducted with investors, representing the financial and capital markets, and with customers, representing end-users in the downstream value chain. With regard to the upstream value chain, suppliers were interviewed as representatives of ‘workers in the value chain’. The interests and views of employees are addressed and raised at works council information events. The findings are dealt with at least once a year at the Supervisory Board committee meetings. In addition to the direct involvement of suppliers and customers, the interests of other relevant stakeholders and affected communities (including local communities), non-governmental organizations, and nature (considered a ‘silent stakeholder’) were indirectly included by involving relevant corporate functions and sustainability experts and by including insights from scientific research.

These internal and external inputs formed the basis for the identification of the IROs, the selection of which was verified and expanded on by the Operating Unit (OU) sustainability leads and their respective working groups, as well as by specialists from the corporate functions (see ‘The role of the administrative, management, and supervisory bodies’). Their review ensured that all relevant business activities and relationships, as well as the context in which they occur (for example, geographies or sectors), were taken into consideration in the DMA.

The KION Group has defined specific rating categories for the assessment of IROs. To assess the IROs, the financial magnitude and the severity of the impacts were combined with the likelihood of occurrence in each case to produce a meaningful categorization of the IROs.

Risks and opportunities in the short, medium, and long term were assessed with respect to their impact on earnings (EBIT). The assessment methodology, categories, and threshold values for financial materiality and the likelihood of occurrence were in line with the groupwide risk management system applicable in 2025. Further information on the risk management system can be found in the ‘risk report’ [ESRS 1.119 (a)]. In the DMA, the threshold value for material risks and opportunities was set at a gross expected value of €62.5 million and corresponds to a gross profit of at least €250 million combined with a likelihood of occurrence of 25 percent. The severity of actual or potential impacts was assessed from the perspective of the affected stakeholders. In terms of the impact dimension, the threshold value was set such that impacts with a likelihood of occurrence of at least 50 percent and ‘high’ impact scores are classified as material.

The negative impacts of the KION Group’s business activities on the environment and society were assessed in terms of the three components of severity (scale, scope, and irremediable character). With respect to potential negative human rights impacts, severity took precedence over likelihood. Positive impacts, in contrast, were assessed in terms of scale and scope only. Impacts were assessed qualitatively on the basis of the best available data sources, such as internal documentation or literature reviews and articles. Risks and opportunities were assessed on the basis of existing evaluations of financial implications from risk assessments, where available, and other data sources, such as market trends or literature reviews and articles.

Most of the risks were financially quantified in the reassessment in 2025. In cases where quantification was not possible, the risks and opportunities were assessed qualitatively and assigned to a financial impact category. In 2025, all sustainability-related risks identified in the DMA process with a gross EBIT effect of more than €25 million were transferred to the new groupwide risk management system and integrated into the regular risk reporting process. The preliminary results of the DMA were subject to two review rounds involving internal experts from the group functions and the DMA project team. The review included checking the completeness of information and explanations, as well as the plausibility of the assessment, including cross-checks between IROs. The process of identifying and assessing material IROs, including the final result of the DMA, were discussed as a key agenda item at a meeting of the Sustainability Council and other relevant group functions, presented to the workers’ representatives, and approved by the Executive Board of KION GROUP AG. The specific involvement of the Executive Board of KION GROUP AG in the sustainability due diligence process is described in more detail in the ‘Information provided to and sustainability matters addressed by the undertaking’s administrative, management, and supervisory bodies’ chapter.

The following section provides information on how the standards on the topics of environment and corporate governance were included.

Identifying and assessing material IROs in relation to ESRS E1 Climate change

The DMA process integrates climate matters through data collection and analysis. The sustainability leads of the Operating Units and functions and the KION Group’s climate experts were also involved in the DMA process. No extensive risk analysis was carried out in connection with the DMA update in 2025 as an analysis of transition risk had already been performed in 2023 and reassessed in 2025. As part of the analysis of transition risk, the subsidiaries’ assets and business activities that are currently powered by fossil fuels were reviewed using a bottom-up approach. The conclusion was that neither the KION Group’s assets nor its activities stand in the way of the transition to a climate-neutral economy. Although switching from coke-fired to electric furnaces at the KION Group’s foundries requires substantial investment, this switch is both technologically and financially feasible and is already at the firm planning stage for one foundry. Ad hoc events in the reporting period were monitored in the course of internal risk reporting and taken into account in the DMA where necessary. The aim is to ensure that both the impacts on climate change and the climate-related effects on the Group’s value chain, including its own operations, are assessed. The results of the analyses of climate-related transition and physical risks were incorporated into the KION Group’s risk management system and are also factored into the Group’s financial planning.

The KION Group identifies relevant Scope 3 categories through a regular materiality analysis of GHG emissions. During this process, activities and plans are screened in order to identify actual and potential future GHG emission sources. The main categories are dealt with in the relevant tables in the ‘Metrics related to climate change’ chapter. All other categories were classified as not material. The regular reassessment of materiality within the Scope 3 categories and the inclusion in the DMA process emphasize the Group’s ambition to comprehensively manage and systematically reduce its GHG emissions. Furthermore, the Group’s total GHG emissions profile, previously performed analyses and risk assessments, results from climate-related workshops, as well as research and studies of relevance to the industry, were taken into account in order to identify actual and potential impacts on and by climate change.

The KION Group has identified climate-related hazards over the short, medium, and long term and, in a multi-location analysis, evaluated whether its assets and business activities may be exposed to these physical risks. This was done with the help of four Representative Concentration Pathway (RCP) scenarios from the Intergovernmental Panel on Climate Change (IPCC): RCP 2.6, RCP 4.5, RCP 6.0, and RCP 8.5. The Group’s location-specific geospatial coordinates were used as key base data in the scenario analysis. Limitations arose mainly from the focus – for the sake of practicality – on selected company locations and from potential uncertainties regarding data validity.

The assessment for the 2011 to 2030 period utilized ERA5 reanalysis from the European Centre for Medium-Range Weather Forecasts (ECMWF), climate model data, and risk datasets from the IPCC. For the future period (2031 to 2050), the likelihood that future climate values will exceed the mean value of the current climate was assessed. Based on the KION Group’s strategic planning horizons and capital allocation plans, the following time horizons were then defined: short term (up to one year), medium term (one to five years), and long term (five to ten years).

Based on the variety of results and conclusions from the IPCC report, the KION Group believes that using a wider range of scenarios ensures adequate coverage of its risks and uncertainties.

The physical risks analysis assessed the likelihood and magnitude of climate-related adverse events and the vulnerability of the KION Group’s locations to these events. The analysis did not identify material risks in the Group’s own operations. While several instances of high risk were identified at the Group’s locations in the most recent risk analysis, a detailed review supported by local Health, Safety, and Environment (HSE) teams showed that vulnerability to those risks can be considered low due to indirect exposure and the remedial action already taken. In 2025, the KION Group commissioned an updated climate risk analysis by external industry experts in order to incorporate the latest scientific findings on climate resilience into future decision-making processes. The climate risks outlined in this scientific study, which once again show high to very high levels of risk for regions in which several sites of the KION Group are located, are currently undergoing a detailed review. Following this final assessment, the qualitative findings will be reflected in the sustainability strategy and in the context of the double materiality analysis.

The results of the various RCP scenarios, including the ‘high-emission scenario’, formed the basis for identifying and assessing short-, medium-, and long-term climate-related hazards in the Group’s own operations. Additionally, the Group’s DMA covered physical risks affecting the upstream value chain. The main focus was on disruption to the supply chain due to extreme weather events, which are listed as a material risk in the material sub-topic ‘Climate change adaptation’. Previous climate risk analyses did not identify any material downstream physical risks.

In 2023, the KION Group conducted a dedicated transition risks analysis to identify material risks in its own operations and along the value chain. The analysis applies scenarios consistent with limiting global warming to 1.5°C to identify risks pertaining to political, technological, market-related, and reputation-related factors. The net zero by 2050 scenario was considered appropriate to model the expected development of market demand for low-carbon products and solutions, changes in global supply chains for low-carbon materials, increasing carbon prices, and the impact of existing and future regulation. This scenario takes into consideration the political, market-related, and technological changes to be expected in a transition consistent with the Paris Agreement climate goals. These changes will shape the conditions in which the KION Group expects to be operating, for example in relation to customer demand, availability and pricing of sustainable materials, energy costs, availability of renewable electricity, carbon taxes and prices, and bans on certain products and technologies. Political and market-related developments, both at national and regional level, provided key inputs for the scenario analysis. The main constraints identified relate to the uncertainty of policy implementation, market dynamics, and adoption rates of low-carbon technologies.

The KION Group identified transition events over the short, medium, and long term. Taking into consideration their likelihood, magnitude and duration (permanent or temporary), these events were set in relation to the Group’s assets and business activities to determine vulnerability and exposure, as well as the applicability of identified opportunities. Exposure was assessed by quantifying potential financial effects in the low, medium, and high risk categories.

During the course of the DMA process, the Group considered the transition risk workshop’s findings and also included opportunities in its own operations and along the value chain. The results of the scenario analysis mentioned above were used during the DMA process as the basis for identifying and assessing short-, medium-, and long-term climate-related transition risks. Long-term covers more than five years, with transition risks in more than ten years’ time also taken into account.

Although the Group identified assets that contribute to significant GHG emissions and business activities that are not yet taxonomy-aligned, a decarbonization roadmap addressing all sources of GHG emissions was developed as part of the KION Group’s commitment to net zero and the SBTi. The roadmap includes planned retirement of emission-intense assets and investment in low-carbon technologies. The roadmap thus demonstrates and supports the feasibility of a transition to a climate-neutral economy.

The KION Group used scenarios and assumptions to assess the financial impact of climate-related risks and opportunities. In this opportunity and risk report, the Group makes qualitative disclosures about risks and opportunities that were deemed material. For example, stronger involvement in the electrification of intralogistics was identified as a strategic opportunity. This opportunity is consistent with a climate transition scenario in which an increasing carbon price strengthens market demand for electric products that emit significantly fewer GHGs during their use phase. The disclosed environmental risks are based on the same framework as that underlying the assessment of climate-related risks.

General disclosures on identifying and assessing IROs in relation to ESRS E2 Pollution and ESRS E5 Resource use and circular economy

To identify and assess actual and potential IROs related to topic-specific ESRSs E2 and E5 in its own operations and in the value chain, the KION Group reviewed all business activities centrally. In light of the KION Group’s business activities in its operating segments, these activities were not categorized as either highly polluting or water-intensive in accordance with the binding environmental standards.

No direct consultations with affected communities were conducted as part of the DMA process in connection with ESRS E2 and E5 environmental standards, but they are under consideration as a possible future improvement.

Identifying and assessing material IROs in relation to ESRS E2 Pollution

For both operating segments, the assessment identified two material impacts and one risk in connection with pollution that primarily related to the upstream value chain. These are impacts on air pollution resulting from the extraction and processing of raw materials and in connection with the transportation of materials in logistics operations. The risk relates to the presence of substances of very high concern (SVHC) in purchased components and to the associated supply disruptions due to a potential ban on perfluoroalkyl and polyfluoroalkyl substances (PFAS). For these reasons, the outcome of the DMA outlined material IROs that do not relate solely to a specific site or region.

Identifying and assessing material IROs in relation to ESRS E5 Resource use and circular economy

To identify and assess actual and potential IROs in connection with resource inflows, resource outflows, and waste, the KION Group gave special consideration to its HSE Standard, which establishes requirements for material use and waste management. At this stage, an examination and assessment of the impacts based on the Group’s assets has not yet been performed but is being considered as an area for potential future improvement.

The materiality analysis identified that, in both operating segments, there are material negative and positive impacts related to resource use, the circularity of the product portfolio, and the generation of waste in the KION Group.

Identifying and assessing material IROs in relation to ESRS G1 Business conduct

With regard to business conduct, various business activities, sectors, locations, and types of transaction relevant to the KION Group were considered during the DMA process, thanks to the involvement of the corporate compliance experts and the sustainability leads from the Operating Units and corporate functions. Furthermore, insights from established compliance frameworks, including the annual compliance risk assessment and incident management processes, along with different regulatory requirements and market conditions, informed the identification of material IROs related to business conduct matters.

Actual and anticipated financial effects of material risks

Unless stated otherwise in the respective topic-specific chapters, the transitional arrangement was applied in 2025 and no actual or anticipated financial effects in connection with the identified material risks were disclosed.

Interests and views of stakeholders (SBM-2)

The social and environmental expectations of internal and external stakeholder groups with regard to the KION Group’s business activities are addressed as part of active stakeholder management and dialogue. The KION Group used certain internal criteria to identify stakeholder groups that are of particular importance for groupwide sustainability management. Given the importance of these stakeholders and the significant role that they play for sustainable and long-term added value, the KION Group aims to consider their specific contributions and requirements in its sustainability performance. In addition to employees, the Group’s key stakeholders include customers, the financial and capital markets (investors, shareholders), suppliers, and workers’ representatives. The relevant legislation in the regions where the KION Group operates and, where appropriate, the work of non-governmental organizations (NGOs) and communities, including local communities, are also considered in this analysis.

The opportunity to participate and express concerns is ensured through close collaboration with the Group Works Council and through structured feedback and complaints management systems such as the groupwide whistleblowing system.

In order to include a wide range of perspectives, the interests of the aforementioned stakeholder groups are generally taken into account in the assessment of the double materiality analysis. With regard to the results of the materiality analysis and their implications, the Sustainability Council, led by the Chief People & Sustainability Officer (CPSO), the Executive Board of KION GROUP AG, and the Group Works Council were informed of the views and interests of participating stakeholders (see ‘Description of the process to identify and assess material impacts, risks, and opportunities’).

Employees

Employees play an essential role in the success of the KION Group. The inclusion and management of employee-related concerns are material elements of responsible business conduct in the KION Group. Carried out every year, the global KION Pulse employee survey is a key tool for driving employee satisfaction and commitment in a targeted manner. It provides vital insights into working conditions and satisfaction levels, which are incorporated into strategic and operational decisions in the form of concrete actions. High employee satisfaction is defined as a target in the sustainability strategy’s ‘Talent’ action field. It is measured based on the results of KION Pulse (see ‘Strategy targets and target achievement in 2025’). Employee satisfaction is measured using the engagement score and the participation rate. The tracking of employee satisfaction is overseen by the CPSO. The two measurement parameters are factors in the calculation of the long-term variable remuneration (LTI) of the Executive Board of KION GROUP AG and other executives (see ‘Integration of sustainability-related performance in incentive schemes’). The annual groupwide employee survey was launched in October 2025 and 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 commitment and motivation of the KION Group’s workforce. In 2025, the participation rate of employees and apprentices in the KION Pulse survey and the resulting engagement score remained at a very high level compared with benchmark companies, once again underlining the KION Group’s positive business conduct (see ‘Strategy targets and target achievement in 2025’).

In addition, a range of formats are used to promote employee satisfaction in a targeted manner, including training and continuing professional development, training programs, groupwide awareness campaigns, and regular and ad hoc communication and information offerings. The opportunity to participate and actively express concerns is ensured through close collaboration with the Group Works Council and through structured feedback and complaints management systems such as the groupwide whistleblowing system. The aim is to gather ideas, information, and suggestions from all employees and draw on them to take the Company forward and fuel the KION Group’s sustained – and sustainable – growth. Primarily, the employee survey provides insights from which to derive actions aimed at increasing employee satisfaction, motivation, and commitment.

Respect for fundamental labor rights and human rights plays a central role in the KION Group’s self-image. The Company 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, which also describe in detail the responsibility of each individual. These include 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 2024/25 document. These policies have been agreed with the Executive Board of KION GROUP AG and apply to the entire KION Group workforce around the world. Groupwide implementation of, and adherence to, these policies is the responsibility of the subsidiaries and of the managers responsible for the Operating Units (including the OU presidents) and Corporate Services.

Customers

The KION Group continuously monitors the changing needs of its business partners and key accounts and refines the sustainability strategy accordingly. The KION Group facilitates dialogue with its customers and holds regular discussions with them via established communication channels. Customer perspectives are also ascertained in targeted one-on-one meetings with business partners and through the Company’s participation in trade fairs and conferences. Customer satisfaction surveys, well-established complaints handling, and a service help desk that systematically captures feedback are further material resources for the ongoing refinement of products, solutions, and services. The KION Group’s fundamental duties with regard to climate neutrality are driven by growing customer demand for sustainable and cost-effective technologies and safety solutions.

The KION Group continuously works to improve the safety features of its products and services with the aim of providing adequate product safety and occupational health and safety. The focus here is on developing functional, safe, and ergonomic product solutions.

This means that these sustainability-related actions to manage the Company also indirectly reflect customer interests. Due to its special importance to customers, the KION Group also participates in the annual sustainability assessment carried out by EcoVadis and has set a corresponding target in its sustainability strategy (see ‘Strategy targets and target achievement in 2025’).

Financial and capital markets

As a listed company, KION GROUP AG – the strategic management holding company of the KION Group – maintains close relationships with the financial and capital markets, primarily through regular contact with investors and by attending capital market conferences where matters such as sustainability criteria are discussed. The KION GROUP AG’s Executive Board and Supervisory Board place great importance on keeping all stakeholders updated on business performance in a prompt and comprehensive manner.

The sustainability-related interests of the KION Group’s financial backers are also consistently addressed. For example, the Group issued a variable-rate promissory note in 2023 that is linked to the achievement of ESG targets over a term of up to seven years (ESG-linked revolving credit facility) (see notes to the consolidated financial statements, note [28]; ESRS 1.123). The KION Group also meets the capital markets’ need for information by actively participating in the annual Corporate Sustainability Assessment (CSA) carried out by financial services company S&P Global Switzerland SA. This is monitored as part of the ‘Sustainable governance’ action field of the sustainability strategy (see ‘Strategy targets and target achievement in 2025’).

Suppliers

The KION Group regularly engages in structured discussions and negotiations with its suppliers to improve the sharing of information and factor external perspectives into business-relevant decision-making processes. Sustainability requirements are also a topic of discussion. Annual supplier audits and assessments are key to upholding sustainability-related standards. ESG ratings help to minimize risk in supplier management and to identify actions aimed at supporting the ongoing development of supplier relationships. Working closely with its suppliers and business partners, the KION Group calls on them to commit to responsible, low-carbon practices and supports them in doing so. The KION Group also undertakes initiatives and pilot projects focusing on lifecycle assessments and Cradle to Cradle certification (C2C) in collaboration with suppliers. This creates a high degree of transparency for sustainable supply chains for KION Group end products and also boosts suppliers’ sustainability efforts.

Policymakers

The KION Group constantly monitors new legal provisions and amendments, establishing the necessary processes to meet statutory requirements, such as the EU taxonomy and the CSRD. As part of standardization initiatives and the work of interest groups, the KION Group gets involved in dialogue with political decision-makers, especially in relation to digital, environmental, and safety-related product requirements. Besides the KION Group being a member of the Blue Competence initiative of the Mechanical Engineering Industry Association (VDMA), its subsidiaries in the ITS and SCS operating segments get involved in the work of trade associations and are also members of international institutions. The KION SCS and KION ITS Americas Operating Units are actively involved in several working groups of the Material Handling Industry (MHI) association in North America. MHI focuses on the development of standards for the workforce and working environment as well as for specific products and solutions. KION SCS and its Dematic brand are actively represented in many of the 18 sector groups, including TRG (The Robotics Group) and CSS (Conveyor & Sortation Systems). In October 2025, the KION Group joined the Made for Germany initiative, a network of over 100 companies with the shared aim of driving innovation, technology, and competitiveness, and thus strengthening Germany as a business location. The KION Group factors the insights gained from its dialogue with policymakers, associations, and initiatives into its business activities in order to meet regulatory requirements and support future technology development in Germany.

(Local) communities^*

In its dialogue with communities, including local ones, at the municipal, regional, and overarching level, the KION Group’s corporate values form the basis of the global strategy for corporate citizenship across the workforce with regard to fundraising and sponsorship: funding community facilities, providing humanitarian assistance in emergencies, promoting education and research, and supporting environmental and social projects. One of the purposes of the groupwide donations and sponsorship policy is to provide transparency internally with regard to the KION Group’s corporate citizenship.

^* Voluntary disclosure within the meaning of ESRS 1.114 (a)

Ongoing involvement of stakeholders in strategic implementation phases

The ability to offer sustainable solutions and services is a key business opportunity under the ‘Playing to Win’ strategy. Reducing the KION Group’s energy consumption and GHG emissions, and continuing to invest in sustainable technologies, can provide a lasting boost to the Company’s competitiveness and resilience. Relevant stakeholder groups also stand to benefit from this strategy. The business relationships with relevant stakeholder groups are therefore expected to remain unchanged in connection with the implementation of these strategic targets.

Material impacts, risks, and opportunities and their interaction with strategy and business model (SBM-3)

The material risks and opportunities identified by the KION Group were qualitatively assessed in terms of their interaction with its strategy and business model. The assessment factored in scenario analyses and the underlying probabilities of occurrence, mainly with regard to climate risks, but also to possible bans on relevant substances. Based on this resilience analysis, the Executive Board believes that the KION Group’s strategy and business model are currently resilient in relation to the identified sustainability risks. The actions already initiated and the future mitigation and adaptation actions have been taken into account in the strategy and align with the Group’s business model. Adjustments to the business model or to the product portfolio, or more extensive investment in innovative technology, may be required in the future if the risk assessment changes materially or in order to boost the Group’s resilience, for example in relation to climate change.

Overall, no financial transactions were identified that had a material impact on the KION Group’s financial position, financial performance, and cash flow in 2025. Opportunities were not categorized as material during the reassessment of the IROs in 2025.

The current potential financial effects of the individual sustainability matters in this sustainability report were individually assessed on the basis of a double materiality analysis in relation to their probability of occurrence and their materiality for the KION Group. They were classified in qualitative terms as immaterial, low, medium, significant, severe, very severe, and extremely severe (see ‘Description of the process to identify and assess material impacts, risks, and opportunities’). Risks and opportunities with a current very severe or extremely severe financial effect combined with a likely or certain probability of occurrence were identified as material for the KION Group.

Two potential risks were identified in the DMA, which as a result of their gross expected value and likelihood of occurrence, were categorized as material for reporting purposes and reported accordingly.

An identified potential risk with a currently very high financial effect (gross expected value pursuant to the DMA before management measures) and the associated cash flow related to:

• Supply disruption due to a potential ban on PFAS (with some alternatives) (risk)

An identified risk with a currently high financial effect (gross expected value pursuant to the DMA before management measures) and the associated cash flow related to:

• Extreme weather events in the supply chain (risk)

Other risks identified as not material were carried over from the DMA to the risk management system based on their net risk exposures.

The identified risks and the potential or actual impacts are explained in more detail in the ‘Climate change’, ‘Pollution’, ‘Resource use and circular economy’, ‘Own workforce of the KION Group’, ‘Workers in the value chain’, and ‘Business conduct’ chapters in this sustainability report.