Krones aims at net-zero emissions by 2040

Neutraubling | It has been officially confirmed: Following a resolution taken by the Executive Board, Krones aims to reduce its greenhouse gas emissions to net zero by 2040 – along the entire value chain.

Following the standard of the Science Based Targets initiative (SBTi), the Krones Group intends to cut its greenhouse gas emissions by 90 per cent along the entire value chain (Scopes 1 to 3) and neutralise the remaining ten per cent by 2040. 2019 is the base year for that and also for the near-term targets already validated by the SBTi. Krones submitted its net-zero target to the Science Based Targets initiative in early April, and the Krones sustainability team expects final validation to be issued by autumn this year.

More stringent reduction target by 2030

“Our decision represents the end of a comprehensive review of all the sustainability targets we’d set ourselves. This revealed that we also have to specify more stringent targets for the medium term up to 2030,” explains Martina Birk, Head of Sustainability at Krones. That applies particularly to the emissions in the upstream and downstream supply chains (Scope 3). The reduction target specified in our previous climate strategy was 25 per cent compared to the base year 2019, however it has now been raised to 30 per cent. For Scopes 1 and 2 (covering in-house emissions), the 80-per-cent reduction target remains unchanged.

Quantifiable KPIs for all fields of ESG

Krones is just as ambitious in all its other efforts to create a sustainable future. Based on the existing sustainability targets, the group has now specified twelve quantitative (unambiguous and measurable) goals to be reached by 2030 in the three ESG areas: Environmental, Social, Governance, which cover the complete range of Krones’ sustainability activities. These include, for example, efforts to increase the proportion of women in managerial positions to 20 per cent, and moves to reduce the water footprint of products sold by 20 per cent.

“We’ve put in place a comprehensive sustainability controlling system focused entirely on this set of ESG KPIs. This system includes not only the strategic goals but also external requirements like CSRD (Corporate Sustainability Reporting Directive), ESRS (European Sustainability Reporting Standards), GRI (Global Reporting Initiative) and ratings such as EcoVadis or CDP,” says Peter Steger, Head of Corporate Sustainability.

Krones is a member of the “Business Ambition for 1.5°C” campaign launched by the Science Based Targets initiative (SBTi).