Sustainability Report

thyssenkrupp Materials Services published its first sustainability report

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Reduction of CO2 footprintEmissions reduction certificats

Research project de:carbCooperation to show carbon footprint

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Where the future of the automotive industry begins

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Latest press releases

8/9/23

Outokumpu, thyssenkrupp Materials Processing Europe and Purem by Eberspaecher continue to strive emission reduction in the automotive industry with Circle Green

Outokumpu, the global leader in sustainable stainless steel, continues the recent partnership with thyssenkrupp Materials Processing Europe, a leading steel and aluminium service centre. The aim is to reduce emissions from the automotive sector with the world’s first towards-zero stainless steel. Purem by Eberspaecher, a specialist in exhaust technology and acoustic solutions, will start using Outokumpu Circle Green supplied by thyssenkrupp Materials Processing Europe, with up to 92% lower carbon footprint than the industry average*. The collaboration is showing the direction of supporting the ambitious EU level transition towards low-emission mobility.

“We are at the forefront of decarbonizing the steel industry and the automotive sector is one of where all solutions to cut emissions are heavily needed. We are committed to a circular economy model with our 100% recyclable stainless steel and there is a huge potential with our Circle Green to show direction as the spearhead solution. No other stainless steel manufacturer has achieved such low emission levels throughout the entire production chain from raw material extraction to final production. We are happy to start the collaboration with Purem by Eberspaecher, offering solutions for both private transport and commercial vehicles, to strive more sustainable mobility in Europe”, says Niklas Wass, Executive Vice President, Stainless Europe, Outokumpu.

"As a strong service partner – especially in the automotive sector – thyssenkrupp Materials Processing Europe is actively addressing the ambitious challenges and targets in the industry. Our teams accompany the innovative research and development of our customers from the very beginning and supports within the supply chain to achieve the formulated emission targets. As a central link between manufacturer and OEM, we look forward to the further development in the automotive segment and are pleased to be able to accompany our long-standing customer as a partner at their side for this milestone”, says Marcus Wöhl, CEO, thyssenkrupp Materials Processing Europe.

Circle Green to help reduce emissions from vehicle manufacturing

Within the partnership, the Circle Green material will be supplied to thyssenkrupp Materials Processing Europe by Outokumpu. The service centre experts will be responsible for processing the master coil into slit strips and will manage the just-in-time delivery to Purem.

“This cooperation underlines our approach for clean mobility with clear sustainable goals. We are a technological leader and drive innovations for our exhaust gas purification systems in conventional as well as future drive types like the hydrogen engine. This includes the material used in our products. To reduce its carbon footprint is a focal point”, says Uwe Ackermann, Vice President Global Procurement, Purem by Eberspaecher.

The German supplier works for all automotive manufacturers globally and is part of the Eberspaecher Group. Its reliable solutions include exhaust and thermal management systems as well as automotive controls. The Green Footprint is one of the company´s sustainability fields of action with clear goals that include CO₂ neutral production by 2030.

*) Global average CO₂ emissions 6.1 tons of CO₂ per ton of stainless steel. Outokumpu Circle Green CO₂ emissions: up to 0.5 tons of CO₂ per ton of stainless steel.

For more information:

Outokumpu media: Päivi Allenius, VP – Communications, tel. +358 40 753 7374 or Outokumpu media desk,

tel. +358 40 351 9840 / media@outokumpu.com

thyssenkrupp Materials Services media: Lars Bank, Head of Communications, Tel.: +49 201 844 534416, lars.bank@thyssenkrupp-materials.com

Purem media: Anja Kaufer, Vice President Corporate Communications, Eberspächer Group, Tel.: +49 711 939-0250, press@eberspaecher.com

8/1/23

With data transparency to a sustainable supply chain: Statement by Martin Stillger, CEO at thyssenkrupp Materials Services

Essen (Germany) – Our Earth's resources are finite. The annual Earth Overshoot Day marks the date when we have used up all available resources for the year. This year, it falls on August 2. As a driver of emissions, industries across the globe bear a special responsibility. Martin Stillger, CEO of thyssenkrupp Materials Services, seizes the day’s occasion to consider the relevance of sustainable supply chains:

"Earth Overshoot Day brings to mind how urgently we need to act together to move this day back. Clear priority is to reduce greenhouse gas emissions. For companies, the commitment to reduce greenhouse gases does not end at their factory gates. It is much more important to reduce all emissions along their supply chains – from Scope 1 to Scope 3. The fundamental prerequisite is to create transparency about their emissions.

Digitalization is a key lever for this: for example, AI-supported tools provide highly accurate forecasts that can be used to avoid incorrect deliveries, minimize inventory and storage costs and reduce transport. In addition, solutions such as emission calculators offer transparent insight into the totality of emissions associated with a product. This reveals potential savings.

Nevertheless, emissions will continue to be produced. To conserve our planet's resources, we must pull out all the stops. Proactive measures to reduce or completely avoid greenhouse gases must take center stage. They can be further supported by carbon offsets and carbon capture and storage technologies. Only if we as an industry understand sustainable business in a holistic way and act accordingly, can we help push back the earth's overshoot day."

As the largest mill-independent materials distributor and service provider in the Western world, thyssenkrupp Materials Services consumes resources to store, process and transport its products. At the same time, the company is working on solutions that create transparency in supply chains and reveal potential emission savings. The goal: to contribute to a world in which resources are used in the best possible way. To this end, the company takes responsibility with its own sustainability strategy "BEYOND", which is guided by international ESG standards. Additionally, thyssenkrupp Materials Services identifies further fields of action and supports its more than 250,000 customers worldwide in achieving their climate goals. Part of the sustainability strategy is the goal of climate reaching neutrality by 2030 – the company has already been able to reduce more than 32% of direct emissions from business operations (compared to the base year 2017/18).

7/11/23

thyssenkrupp Materials Services and Novelis partner to drive circularity

Companies aim to set new standards for end-of-life recycling with automotive circularity platform.
Open platform will enable access to larger quantities of high-quality recycling materials.
First step will include a prototype for comprehensive testing and evaluation purposes.

Essen/Zurich – thyssenkrupp Materials Services, the biggest mill-independent materials distributor and service provider in the Western world with a distinctive portfolio of innovative digital supply chain solutions, and Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, have formed a partnership to increase end-of-vehicle-life recycling and availability of valuable secondary materials that can be recovered from automobiles at the end of the consumer-use cycle.

Through the joint development of a digital platform called the Automotive Circularity Platform (ACP), the companies seek to digitalize the market for secondary materials recovered from end-of-life vehicles and increase its transparency by creating an ecosystem with the common long-term goal to increase the recycling rate of cars and reduce carbon emissions. ACP will be a digital marketplace that connects stakeholders throughout the automotive end-of-life value chain and empowers automotive suppliers to capture and reuse aluminum and other materials, such as steel, plastics, glass, rubber, and more.

The first step is to create a prototype of the platform for comprehensive testing and evaluation purposes. The results of the proof-of-concept analysis will serve as feedback for thyssenkrupp Materials Services and Novelis to make enhancements and explore the possibility of wider adoption and use by their respective industry partners.

6/27/23

de:karb research project to show carbon footprint across the entire supply chain

Research project by TRUMPF, thyssenkrupp Materials Services and Fraunhofer IPA to mitigate the climate impact of sheet metal processing.

The de:karb project will create an open platform enabling companies to determine a specific component’s carbon footprint.
Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK) is providing funding of 8.3 million euros.

A project consortium headed by TRUMPF and including thyssenkrupp Materials Services and the Fraunhofer Institute for Manufacturing Engineering and Automation IPA is investigating ways of reducing carbon emissions in sheet metal processing. The goal is to create a freely accessible online platform that companies can use to accurately determine the carbon footprint of any component.

“Digitalization is the key to mitigating the climate impact of industry,” says Jens Ottnad, TRUMPF project lead. “As a leading supplier and user of digitally networked production systems, we have everything it takes, together with our project partners, to make the world of sheet metal processing more sustainable.”

The project was launched in June and will run for three years. Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK) is providing funding of 8.3 million euros.

6/26/23

Outokumpu starts a collaboration with thyssenkrupp Materials Processing Europe and Boysen Group to help decarbonize the automotive industry

Outokumpu, the global leader in stainless steel, is partnering with thyssenkrupp Materials Processing Europe, a leading steel and aluminum service centre, and Boysen Group, a premium exhaust system manufacturer, to introduce the world’s first towards-zero stainless steel to the automotive industry. Outokumpu’s Circle Green is the world’s most sustainable stainless steel with up to 92% lower carbon footprint than the industry average*. The companies aim to supply larger quantities of Outokumpu’s Circle Green product to the industry as of the second half of 2023.

“Together with our dedicated partners we are expanding this unique solution into the automotive industry. Like many other industries, the automotive sector is looking into cutting its carbon dioxide emissions, and we can help our customers and partners to develop solutions that reduce the climate burden. A year ago, we introduced Circle Green, our towards-zero-stainless steel, which has generated significant interest and demand across various segments. By uniting the strengths and expertise of Outokumpu, thyssenkrupp Materials Processing Europe and Boysen Group, the partnership represents a milestone in the pursuit of a low-emission automotive industry”, says Niklas Wass, Executive Vice President, Stainless Europe, Outokumpu.

Towards-zero stainless steel for the first time to the automotive industry

Tailpipe emissions from cars, trucks, and other road vehicles account for around 75% of all carbon emissions from mobility – approximately six gigatons of CO₂ per year. The shift to low-emission vehicles will disrupt the entire automotive supply chain and create a significant change in the market for auto components.**

As part of the collaboration, Outokumpu supplies the material to thyssenkrupp Materials Processing Europe, the service center experts then take care of processing the master coil into slit strips and manages the just-in-time delivery to the Boysen Group.

"As an independent service center, supply and service around emission-reduced metal products are central services for our company. We want to support our customers and partners in developing sustainable solutions – such as using Circle Green with up to 92% lower carbon footprint than the industry average, for our customer Boysen Group”, says Marcus Wöhl, CEO of thyssenkrupp Materials Processing Europe.

The supply of CO₂ reduced material is an important building block in the sustainability strategy of thyssenkrupp Materials Services, the parent company of thyssenkrupp Materials Processing Europe.

With the procurement and use of decarbonized stainless steel, the Boysen Group is acting as a role model in the automotive industry towards more sustainable supply chains. The use of Circle Green enables the Boysen Group an enormous savings potential in CO₂ emissions and thereby actively contributes to climate protection – at the same time supporting the company target of protecting, preserving, and shaping the environment.

"For us as a developer and manufacturer of systems and components that provide crucial reductions in pollutant and noise emissions in our customers' vehicles, environmental protection is an essential part of our business. We are proud to have found two strategic partners to further advance the important topic of sustainability and CO₂ neutrality in the supply chain. True to our path – without change, no future", says Rolf Geisel, CEO of Boysen Group.

Outokumpu’s Circle Green has set a global precedent, as no other stainless steel manufacturer has achieved such low emission levels throughout the entire production chain from raw material extraction to final production.

*) Global average CO₂ emissions 6.1 kg of CO₂ per kg of stainless steel (Source: ISSF). Outokumpu Circle Green CO₂ emissions: up to 0.5 tons of CO₂ per ton of stainless steel.

**) The automotive sector’s net-zero transition: Shifting to low-emission vehicles | Sustainability | McKinsey & Company

6/19/23

thyssenkrupp Aerospace and Deutsche Aircraft sign long-term agreement for end-to-end materials supply chain solution

Le Bourget, June 19 2023 – Deutsche Aircraft and thyssenkrupp Aerospace announced today that they are entering into a long-term frame agreement for an integrated end-to-end supply chain solution for material management for the D328ecoTM aircraft. thyssenkrupp Aerospace, a division of thyssenkrupp Materials Services, will be responsible for supplying materials, from planning to sourcing, processing to warehousing, as well as logistics and distribution to Deutsche Aircraft and its European subcontractors.

There are three components to this materials management solution. The first is a digital control tower that thyssenkrupp Aerospace and DAG have co-created to manage the entire ecosystem and to coordinate all material flows, from sourcing to distribution. The second part of the solution sees thyssenkrupp Aerospace take full responsibility for the procurement of all materials. The third part is a materials hub and distribution center, that enables thyssenkrupp Aerospace to deliver materials just-in-time to the production lines of the multiple sub-contractors of Deutsche Aircraft. The entire solution has been built from the ground up to enhance end-to-end transparency of the D328ecoTM aircraft supply chain, ensure a seamless, on-time supply of materials to Deutsche Aircraft and its sub-contractors, and overall, to boost the resilience of the entire supply chain, a major concern in the aerospace and defense industry.