Sustainability Report

thyssenkrupp Materials Services published its first sustainability report

Reduction of CO2 footprintEmissions reduction certificats

Fiscal Year 2021/2022Annual Report of thyssenkrupp AG

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Latest press releases

6/1/23

Green steel for green energy: thyssenkrupp Materials Processing Europe supplies CO2-reduced steel to König, a manufacturer of solar installation mounting systems

Solar plants with CO₂-reduced steel for sustainable power generation
Steel services from thyssenkrupp Materials Processing Europe save over 60% CO₂ for the assembly systems of the solar parks
Energy amortization time of the photovoltaic systems is shortened

Sustainable electricity generation from solar energy makes an important contribution to the success of the energy transition. Required photovoltaic systems do not emit any harmful exhaust gases or greenhouse gases during operation, but their production already causes CO₂ emissions. In order to keep these emissions as low as possible for the production of solar mounting systems for a photovoltaic plant, thyssenkrupp Materials Processing Europe will supply the PV mounting system supplier König from Moringen with CO₂-reduced steel from May 2023.

For an efficient solar energy expansion, a fast amortization time of the energy used for the production is important. To achieve this, the company from Lower Saxony relies on the expertise of thyssenkrupp: thyssenkrupp Materials Processing Europe supplies customized, CO₂-reduced slit strip and also offers precise documentation of the CO₂ footprint from production to delivery. The steel is the bluemint® recycled grade from thyssenkrupp Steel Europe. By using this steel, which is produced at the Duisburg location, around 64% CO₂ intensity can already be saved for the solar profile. König will also use the CO₂-reduced steel to offer solutions for sustainable planning and construction in drywall construction.

4/27/23

thyssenkrupp Aerospace and Bombardier extend partnership for materials supply chain management

thyssenkrupp Aerospace handles material supply from sourcing to processing to warehousing and logistics
Control tower will manage Bombardier’s supply chain ecosystem and enhance transparency and resilience
Investment in new technologies and tools

thyssenkrupp Aerospace has signed a new seven-year agreement to provide raw material management services to Bombardier, a global leader in aviation, focused on designing, manufacturing, and servicing the world’s most exceptional jets for business and defense customers. The agreement is an extension of a 15-year-long partnership between the two companies. thyssenkrupp Aerospace manages raw material deliveries to Bombardier’s supply chain by handling material flows from demand forecasting, sourcing, and processing to warehousing and logistics through a dedicated and customized control tower.

4/18/23

Statement Ilse Henne: Supply Chain Day 2023

Whether it's fragile supply chains, cost pressures, or increasing sustainability requirements, the logistics industry is facing increasingly complex challenges. To meet them, companies need to make their supply chains more flexible and resilient. To mark "Supply Chain Day" on April 20, Ilse Henne, Chief Transformation Officer at thyssenkrupp Materials Services, looks at current developments and trends in the industry:

"Global supply chains are increasingly developing into complex supply networks. Their resilience is essential in the current global market environment – but this requires more transparency and collaboration between all players. The digitalization of industry offers enormous potential: for example, end-to-end data collaboration can break down existing silos in supply chain management and increase the resilience, supply security and profitability of companies. For customers in particular, this creates real added value.

Digitalization also helps companies avoid supply bottlenecks and optimize (intra-)logistics and utilization of existing machinery. In addition, comprehensive real-time data exchange with the other participants in a supply chain can reduce dynamic processes such as the bullwhip effect and thus secure competitive advantages.

Companies should therefore focus on their supply chains and invest, for example, in software solutions that create transparency in their supply chain. The partnership-based (data) exchange of all parties involved is also becoming increasingly important in order to be sufficiently informed and to pull together. This is the only way companies can meet the challenges facing logistics and the global economy today."

As the largest mill-independent materials distribution and service provider in the Western world, thyssenkrupp Materials Services is already working on solutions for end-to-end data collaboration across the entire supply chain as part of its strategic development "Materials as a Service". The aim: to make supply chains more digital and resilient, improve forecasts, avoid supply bottlenecks and ultimately strengthen global supply security.

3/30/23

A commitment to transparency: thyssenkrupp Materials Services publishes its own sustainability report for the first time

As part of the group of companies, thyssenkrupp Materials Services officially falls under the reporting obligations of thyssenkrupp AG and is therefore not required to publish a sustainability report. "But that's not the only benchmark," says Martin Stillger, Chief Executive Officer of thyssenkrupp Materials Services: "We have defined a clear ambition on the subject of sustainability with 'BEYOND': We want to go further than others expect us to. That also means going beyond the minimum legal requirements." Therefore thyssenkrupp Materials Services decided to publish its own purely digital sustainability report. At “thyssenkrupp Materials Services Sustainability Report” the company brings together on one platform all facets of its sustainability commitment, which received a first recognition in October with the Sustainability Award.

"When it comes to sustainability, we also have high standards for maximum transparency and are pleased if we can set impulses to transform our industry," says Stillger. Under the umbrella of "BEYOND" thyssenkrupp Materials Services takes a holistic approach to sustainability. Aligned with the internationally recognized ESG standards, the company offers customers climate-friendly products and services, aims to be carbon neutral by 2030, and is committed to social and societal issues such as promoting diversity and raising social standards along supply chains. As market leader for materials services, thyssenkrupp Materials Services also aims to become the industry leader for sustainability.

Figures, data, facts – and employees in the foreground

A classic sustainability report should be informative, comprehensive, well-structured and clear. In its own report thyssenkrupp Materials Services supplements these aspects with an entertaining, varied and dynamic representation. In addition to ecological and social activities from the businesses of the largest mill-independent materials distributor and service provider in the Western world, insights into climate-friendly product solutions are shown. One of them is the Product Carbon Footprint Calculator, which creates transparency on all CO₂e emissions along the entire supply chain. It becomes clear that, in addition to innovative approaches, the company has already been addressing the issue of sustainability for many years. For example, a functioning circular economy through recycling of materials, such as slag, has long been standard practice at some points in the company. In addition, the focus is on the people who make the organization sustainable. Employees who contribute ideas, make work safer, drive inclusion, and thus ensure sustainable togetherness.

"We are realizing our development to a more sustainable business in over 30 countries and together with our approximately 16,000 employees. That's why it's important to us in our sustainability report to show not only the projects, but also the people behind them, and to let them have their say," emphasizes Stillger.

About the Sustainability Report

With this report thyssenkrupp Materials Services is laying the foundations for reporting that will be aligned with an overarching standard in the future. The company is guided by a combination of national and international standards. A printed sustainability report has been deliberately dispensed with.

You can access the Sustainability Report under the following link:
https://www.thyssenkrupp-materials-services.com/sustainability-report/en?mtm_campaign=Launch&mtm_source=Presse&mtm_group=Sustainability

3/8/23

Emissions reduction certificates from thyssenkrupp Materials Services help customers reduce their CO2 footprint

Despite many innovations and efforts, it is not yet possible for companies today to completely avoid CO₂ emissions or reduce them to zero. This applies in particular to so-called Scope 3, where emissions are generated in the supply chain or through the use of the products sold. Through its subsidiary thyssenkrupp Materials Trading, thyssenkrupp Materials Services now offers emission reduction certificates. With these so-called Voluntary Carbon Credits (VCCs) customers can offset emissions along their own production and value chains and contribute to achieving climate targets. thyssenkrupp Materials Services, the biggest mill-independent materials distributor and service provider in the Western world, is thus the first company in its sector to offer Voluntary Carbon Credits.

High standards and maximum transparency

"Our ambition is to offer our customers the best products and solutions to help them achieve their sustainability goals," says Martin Stillger, CEO of thyssenkrupp Materials Services. "We clearly see the need for sustainable solutions that take effect immediately. That's why, in addition to CO₂ -reduced products, we also offer our customers the purchase of Voluntary Carbon Credits – and all from a single source, from the supplier they trust."

The certificates are selected in accordance with careful criteria that must be reviewed and developed continuously. In addition, coordination takes place with the customers regarding their wishes. When selecting projects, the question of whether they are sustainable and accompanied by additional measures plays a critical role. Examples of such projects include reforestation, expansion of drinking water supplies and direct air capture carbon and storage. This involves extracting CO₂ out of the atmosphere or a vent, compressing it into rock layers and storing it in mine tunnels, for example. The portfolio also includes biochar projects. Biochar is a process in which biomass is compressed under extreme heat so that no CO₂ can escape. The resulting product is used as a plant fertilizer, for example.

Emissions that are harmful to the climate may only be offset and thus retired once. It is therefore crucial that the process is transparent and recorded in accessible registers to ensure that emission values are assigned to specific VCCs. A prerequisite for offsetting is knowledge of one's own CO₂ footprint. At thyssenkrupp Materials Services this is achieved with the "Product Carbon Footprint Calculator" introduced in 2022. This calculator measures all emissions along a product's supply chain and thus provides clarity on the status quo. The aim is for these emissions to also be offset directly via VCCs in the future.

The Voluntary Carbon Credit Desk (VCC Desk) – service from a single source

The VCC Desk at thyssenkrupp Materials Trading handles the careful selection, procurement and transparent and orderly retirement of emission reduction certificates centrally for thyssenkrupp Materials Services and for its own customers. The resulting offset is relevant both for the company's own emissions (Company Carbon Footprint) and for emissions in connection with the customer's trading products (Product Carbon Footprint).

"With the VCC Desk, we relieve customers of an often complicated, labor-intensive and administrative process and make it easier for them to access the Voluntary Carbon Credit market with expert support," said Wolfgang Schnittker, CEO of thyssenkrupp Materials Trading. "The VCC Desk will gradually enable all of thyssenkrupp Materials Services customers as well as external companies to purchase emission reduction certificates and retire them. With CO₂ prices and continuously increasing legal requirements, saving CO₂ emissions will become an economic necessity in the coming years."

The Voluntary Carbon Credit Desk is part of thyssenkrupp Materials Services' sustainability strategy BEYOND, which is based on internationally recognized ESG criteria but goes beyond legal requirements and standards – hence BEYOND.

thyssenkrupp Materials Trading is an international trading and service company headquartered in Essen, Germany. The product range includes raw materials such as alloys, nonferrous metals, minerals, coke, coal and ores, various raw materials for future technologies, metallurgical products such as steel and tubes, pipe accessories, finished steel and stainless steel, as well as trading in new and used industrial equipment, machine tools, spare parts and construction elements for hydraulic steelwork and the offshore sector, and material and logistics services of all kinds. The range is rounded off by customized offers including financing and shipping.

12/13/22

Modernizing industrial metals trading: thyssenkrupp Materials Services launches online marketplace SteelBuy

The new online marketplace SteelBuy, a corporate venture of thyssenkrupp Materials Services, has been launched in the UK with the aim of revolutionizing traditional trading in industrial metals. The end-to-end platform primarily targets excess inventory and stands out by anonymizing buyers and sellers, reducing the effort required to close deals, managing payments and logistics, and offering sellers 24/7 access to a global market. As a result, the platform addresses aspects that have previously presented barriers to trade.

Terry Sargeant, CEO of SteelBuy, says: "The need for sellers to keep their competitors in the dark about excess inventory, as well as the effort required to find buyers, are the root causes of problems in the market. These are exacerbated by traditional metal trading methods. The result is that it is difficult for buyers to find these inventories as well as for sellers to identify the appropriate buyers. SteelBuy solves this problem and brings the parties together." v