Why do we need carbon-neutral business?

At thyssenkrupp's steering business, Magdalena, Andrea, Tobias and Julien ensure that economic performance and sustainable action are thought of together. As Team ESG, they work together with the business units to make the company more sustainable overall.

Magdalena Kunz has been with thyssenkrupp Presta AG since 2001 and started her new job as ESG project manager three months ago. In an interview, the mother of two reveals why she is passionate about ESG and what she would like to change.

Andrea Loacker started as Project Manager ESG at the steering expert in Liechtenstein on June 1, 2023. A native of Carinthia, she studied at the University of Natural Resources and Applied Life Sciences in Vienna and at Cranfield University and most recently worked at the Ministry of Agriculture.

Tobias Danner started working at thyssenkrupp in March 2019 in Cost Engineering. When the sustainability department was established, he calculated the first product carbon footprints and researched databases and certifications. After further training to become a climate engineer and studying to become a sustainable engineer, Tobias moved to the ESG department in September, where he is responsible for the C02 footprint of products and the implementation of climate targets in the supply chain.

Julien Becker is the new Head of ESG at thyssenkrupp Presta AG since March 1, 2023. In this interview, the passionate mountain biker reveals what drives him when it comes to ESG and what goals he has set himself for the future.

Why does Presta need ESG at all?

Magdalena: ESG stands for environmental, social and governance standards. These issues are becoming increasingly important to the capital market. Without ESG ratings and official sustainability reports, investors and banks would pull back. Those who do not respond are taking a business risk. That's why we have to act responsibly and sustainably. But also because we owe it to our children.

What specific issues play a role here?

Andrea: Sustainability is already a key element of our corporate strategy. As thyssenkrupp's steering business, we want to offer innovative products, technologies and services worldwide that contribute to the sustainable success of our customers. Together with our customers we look to the future and integrate economic as well as environmental and social aspects in our decision-making processes. This is based on a 360-degree view of our value and production chains. In this way, we improve our performance and strengthen the future of our company.

Are there any legal requirements behind this?

Tobias: Absolutely. The European Green Deal, for example, aims to achieve climate neutrality in Europe by 2050. Greenhouse gas emissions are already to be reduced by 55 percent by 2030. The European "Green Deal" encompasses social, environmental and economic factors and aims to achieve sustainable growth. We operate in the European Union and are affected by the upcoming climate protection requirements. Of course, this also applies to legislation in other countries in where we operate. Germany, for example, wants to become greenhouse gas neutral by 2045 with its "Climate Protection Act," while Switzerland wants to achieve the "net zero target" by 2050 with its "Federal Act on Climate Protection Targets, Innovation and Strengthening Energy Security" of June 2023. Politicians, business and society agree that greenhouse gas emissions must be limited in order to prevent serious and irreversible changes to the climate system. How this is to be done, however, is the subject of controversial debate. Policy instruments are EU regulations and EU directives or national laws, often in combination with incentive instruments such as subsidies. One of these is the much-discussed CO2 pricing. It is intended to reduce emissions.

And who controls that?

Tobias: ESG rating agencies assess a company's commitment to sustainable developement. The assessment results, known as scores, enable transparency and comparability of a company's sustainability performance in terms of environmental, social and governance factors. As a Group, thyssenkrupp holds ratings from CDP, MSCI, Sustainalytics and Ecovadis, among others. Due to its responsibility thyssenkrupp is a member of econsense and supports the UN Global Compact. The ratings from the rating agencies provide valuable feedback on our sustainability performance. As a Group with industrial and technology businesses, thyssenkrupp reports in a fully integrated way as part of its sustainability reporting.

How do we achieve sustainability?

Julien: Sustainability is an integral part of our Group strategy, which also aims to contribute to the sustainable success of our customers with our products, technologies and services. This means ensuring a clean value and production chain. To this end, we have set specific targets to become carbon neutral. Communication and monitoring are also very important, as is the training of our employees.

What are the specific targets?

Andrea: The entire thyssenkrupp Group has defined concrete climate targets: 30 percent less own CO2 emissions and emissions from purchased energy by 2030 (Scope 1 and 2) compared to 2018. 16 percent less CO2 emissions in the upstream and downstream supply chain (Scope 3) by 2030 compared to 2018. The independent scientific organization Science Based Targets Initiative (SBTi) has recognized this target as ambitious and in line with the Paris Climate Agreement. Only a few manufacturing industrial companies are achieving this target. The Automotive business segment has set itself even more ambitious targets: By 2024 we aim to be climate neutral at all sites in Scope 1 and 2, and by 2035 in Scope 3. This also includes offset measures.

As part of the strategic alignment of the steering business, we are in the process of defining detailed sustainability goals and integrating them into the "House of Strategy" and the "Strategy 2030." Because one thing is clear: Sustainability is here to stay. Not only our shareholders, but also our customers are making increasingly specific demands on us. Hence the impulse to all employees: Let's tackle it together and get involved!