Sustainability Strategy and Management

Sustainability is firmly established in the “KION 2027” corporate strategy as an individual field of action. The KION Group takes a systematic, Group-wide approach to the operational implementation of its sustainability strategy and the underlying sustainability program.

As part of the KION Group, Linde MH follows the Group-wide rules and principles for sustainable corporate governance. Sustainability criteria are also firmly integrated in the operational business by implementing company-specific guidelines and procedures. These include the sustainability policy, guidelines for integrated health, safety, and environment (HSE) management, and life cycle assessments, which reliably show the environmental impact of products and solutions.

Linde MH’s sustainability approach is based on the materiality analysis conducted by the KION Group. This assessment, which was updated in 2022, identifies and evaluates material issues that may be relevant to the Group—including with respect to the UN’s Sustainable Development Goals—and is based in part on the findings from global surveys of key stakeholder groups.

Topics are assessed with regard to their relevance to the KION Group from three perspectives: relevance to the business (outside-in, opportunities and risks for the Group’s business development), impact of the organization (inside-out, impact of the Group’s business activities on the environment and society), and relevance to stakeholders (importance with regard to the development and shaping of expectations and decision-making on the part of stakeholders).

Supported by the KION Group’s materiality analysis, eight closely interlinked fields of action along the value chain were consolidated and developed further in the year under review. We are planning to review the materiality analysis again in 2024 in view of the upcoming entry into force of the new EU Corporate Sustainability Reporting Directive (CSRD).

Group-wide Materiality Analysis

Guiding Principles and Fields of Action

At Linde MH, sustainability is linked to the wider-reaching targets and initiatives organized into the three strategic dimensions of people, products, and processes, always in keeping with the overall principle of “We take responsibility.” These three dimensions provide the framework for the eight sustainability fields of action. In line with the KION Group’s sustainability strategy and materiality analysis, Linde MH pursues a specific program of targets, initiatives, and monitoring within each of these action fields, in order to meet stakeholder expectations and ensure compliance with political and legislative requirements.

Group-wide Fields of Action

Company

Linde MH has a company history spanning over 120 years, including more than 50 years in material flow solutions. The Aschaffenburg-based company may have its origins in Germany but today it is one of the world’s largest manufacturers of forklift trucks and warehouse handling equipment. As a technology leader in the industry, Linde MH offers a wide range of industrial trucks, automation, safety, and energy solutions, fleet management and warehouse management software, and comprehensive services. Linde MH has been part of the KION Group since 2006 and manages production sites in Germany, France, the Czech Republic, and Poland.

The company delivers top performance under even the most challenging operating conditions. Alongside its desire to produce high-performance drive systems, safety and user-friendliness are Linde MH’s top priorities: Precise load handling, outstanding maneuverability, intuitive operation, and an ergonomic driver’s workstation guarantee excellent handling performance and productivity. In addition, the trucks can be seamlessly integrated into fleet management or warehouse management systems using wireless data transmission and digital interfaces. Combined with comprehensive energy, safety, and automation solutions and optimal integration into customers’ business processes, this results in holistic solutions for networked, safe, and sustainable intralogistics.

In the field of electromobility, Linde MH is currently the only manufacturer to offer electric counterbalanced forklift trucks in the form of its X models. With their strong performance and robust design, these models offer a powerful alternative to trucks equipped with an internal combustion engine. Customers can rely on the quiet and practically emission-free drive technology to handle even the most challenging of applications without compromising on performance.

With a large rental fleet of almost 43,000 trucks, Linde MH offers a high level of flexibility, whether customers want to take advantage of the various options available to them—leasing, long-term rental, or hire—or prefer to opt for a used Linde forklift, all of which are refurbished in accordance with standardized specifications throughout Europe.

Sustainability Organization

Linde MH follows the systematic approach of the KION Group for the operational implementation of its sustainability strategy. We define strategic sustainability targets that are concrete and quantifiable as well as the main levers and relevant KPIs for each of the eight fields of action. These are defined in further detail and implemented within the scope of comprehensive programs of measures (for further information, see the KION Sustainability Report 2023). The revision of the individual targets, further breakdowns, and the corresponding measures are reviewed on an ongoing basis. As part of this process, they are also aligned with external requirements, the fields of action, and internal stakeholders at Group level and in the Operating Units.

The leads for the individual fields of action and the regional sustainability coordinators in the KION Group work together with central sustainability management as part of a steering committee. Together, they ensure that the sustainability program is consistent across the Group, continually enhanced, and implemented. The KION Group’s central sustainability management team is also responsible for managing and coordinating the sustainability program across the Group, defining sustainability KPIs, and tracking progress towards strategic targets and targets within the action fields. It ensures coordination between the individual fields of action and Operating Units and within the Group. It also provides specialist support internally and externally where necessary.

Progress is monitored regularly, both at Group level and within the Operating Units (for example, as part of steering committee meetings), and reports are issued to the KION Group AG Executive Board. As of May 1, 2023, a new Board member—the Chief People and Sustainability Officer—took over the area of sustainability in addition to the tasks of Labor Director.

Initiatives

The KION Group committed to the objectives of the Science Based Targets initiative (SBTi) in 2023. As part of this commitment, it set itself the long-term climate target of achieving net-zero greenhouse gas emissions along its value chain by 2050. Key interim targets have been set for 2030 (see targets in the KION Sustainability Report 2023). Linde MH thus has a basic methodological framework for its climate action and is committed to the target of limiting global warming to 1.5 °C above pre-industrial levels, which was adopted at the United Nations Climate Change Conference in Paris in 2015. The climate management targets are to be developed further in 2024 in accordance with the SBTi criteria.

As a supplier, Linde MH has been regularly assessed and certified in relation to its corporate responsibility by the independent service provider EcoVadis since 2012. In the certification conducted at the end of 2023, Linde MH obtained scores that were far above average in all four evaluation categories. This puts it among the top one percent of all companies participating in the ranking, with Linde MH also achieving higher scores in the “Ethics” and “Sustainable Procurement” categories than in the previous screening. The analysis system on which the rating is based comprises 21 criteria from the four thematic areas of environment, labor and human rights, ethics, and sustainable procurement. The methodology is premised on international sustainability standards—such as the Global Reporting Initiative, the Conventions of the International Labour Organization, the UN Global Compact, the UN Guiding Principles on Business and Human Rights, and the ISO 26000 sustainability guideline.

Linde MH is also a partner of the sustainability initiative Blue Competence. This initiative of the Verband Deutscher Maschinen- und Anlagenbau e.V. (German Mechanical Engineering Industry Association) aims to promote sustainability in mechanical and plant engineering and raise awareness of sustainable solutions in the industry. As part of this partnership, Linde MH has committed to upholding the 12 sustainability principles of mechanical and plant engineering.

The Bavarian Environmental and Climate Pact is another initiative that Linde MH is supporting with qualified environmental efforts. Participating companies are committed to conserving resources and using environmentally friendly technologies to achieve “green economic growth.” To this end, topic-specific working groups have been formed to formulate goals and make recommendations for implementation. The working groups are supported by external experts where necessary. Linde MH has recently been awarded the Pact certificate, which is valid for three years.