Our approach
We are convinced that a consistent path towards sustainability will help us to tap new growth potential in the future.
On the one hand, we are continuously working on the efficiency, durability and environmental compatibility of our products and services. On the other hand, we are gradually expanding the sustainability of our own operating and value creation processes.
Sustainability at Krones
Sustainable business strategy
The sustainability goals of the Krones Group are integrated into our corporate strategy. Our new corporate vision, “Solutions beyond tomorrow”, shows how sustainability drives our company.
Sustainability Governance
Sustainability is anchored in the Krones Group's objectives as a strategic focus. The resulting sustainability transformation of the company is managed by the Executive Board, with the Chief Executive Officer (CEO) having overarching responsibility for sustainability. The Specialists departments responsible for the key sustainability issues relating to the environment, social affairs and governance are tasked with achieving targets and implementing measures. The Sustainability department, which reports directly to the CEO, acts as a catalyst for our sustainable transformation along the entire value chain. It coordinates the sustainability targets, empowers employees and monitors performance and target achievement, which it regularly reports to the Executive Board. A Group-wide network of sustainability coordinators supports the central department and drives sustainability in the international subsidiaries.
Sustainability Executive Reviews
The Executive Board holds coordination meetings on sustainability topics at sixweek intervals so as to bring the management of our sustainability objectives into the top tier of company leadership. In these meetings, the key sustainability performance indicators are tracked and strategic decisions made regarding the company’s sustainable development.
Executive Board remuneration linked to sustainability
Sustainability aspects form part of the Executive Board's remuneration guidelines. Since the 2024 financial year, 20 percent of the target contribution of the long-term incentives (LTIs) has been attributable to ESG targets, whereby the ESG targets are to be successively expanded. In addition to greenhouse gas emissions from Scope 1 and Scope 2, the proportion of women in management positions (Krones AG and Krones Group) has been included in the measurement of LTIs since the 2023 financial year. Emissions are weighted at 70 percent, the proportion of women in management positions at the Krones Group at 20 percent and the proportion of women in management positions at Krones AG at ten percent.
Risk management
As part of our Group-wide risk management, sustainability-related risks are regularly recorded, assessed and prioritised. The assessment of existing risks is updated in a half-yearly risk inventory and newly identified risks are included. Risks can be reported informally at any time via an "ad hoc report".
Materiality assessment
As part of the summarised non-financial statement for the 2024 financial year, the double materiality analysis for the Krones Group was carried out for the first time in accordance with the requirements of the ESRS. As part of the materiality analysis, the impact of our value creation on people and the environment as well as risks and opportunities for our business were identified and assessed. This process takes into account the impacts in which Krones is involved through its own business activities or due to business relationships. In our assessment, we considered both positive and negative impacts as well as actual and potential impacts in relation to sustainability issues. The financial assessment evaluated sustainability-related risks and opportunities that could have a negative or positive financial impact on our business. Our process is designed to identify specific activities, business relationships, geographical regions or other factors that harbour an increased risk of negative impacts.
