Metrics and targets

E2-3 – Targets related to pollution

To date, no groupwide quantified targets related to pollution have been defined within the meaning of ESRS E2. Due to thyssenkrupp’s heterogeneous business activities and the resulting differences in relevance, risk exposure and regulatory requirements, operational environmental protection is managed mainly at the level of the organizational units. Some of the environmental plans are segment-specific, such as the water management plan of thyssenkrupp Steel Europe AG.

Despite the lack of quantitative targets, the effectiveness of existing pollution policies and actions is monitored via management systems, internal audits, external certification in accordance with ISO 14001 and ISO 50001 and site-specific risk and compliance processes. The environmental performance is measured using qualitative and quantitative indicators, among other things. These include environmental indicators such as wastewater quality, waste volumes and pollutant emissions. In addition, audit findings can be used as indicators of compliance with statutory thresholds or the effectiveness of emission mitigation actions. The benchmark is the starting situation for the respective site or organizational unit.

E2-4 – Pollution of air, water and soil

In the context of this disclosure requirement, thyssenkrupp reports the substance-related emissions from its own operations with the goal of achieving transparency regarding the discharge of these substances into the air, water and soil. This reporting takes place on a consolidated basis and covers those installations under the financial or operational control of the company and emissions of the substances listed in Annex II of Regulation (EC) No 166/2006 concerning the establishment of a European Pollutant Release and Transfer Register (E-PRTR) if the thresholds defined therein are exceeded.

Emissions from installations which are used to produce steel and are already subject to the E-PRTR are mainly determined by direct measurement. As the final E-PRTR data were not yet available when the CSRD reporting was prepared, extrapolation was used for quantification. The emissions are calculated using a simplified extrapolation method. To start with, current production volumes are estimated on the basis of progress values over time. The emissions are then derived using a combination of historical benchmarks and values adjusted to reflect the estimated development of production. This results in a consolidated emission volume for these installations for the reporting period.

The emissions for the other installations that are within the scope of this disclosure requirement are estimated using a model-based approach. Relevant emission sources (the use of fuels and chemicals, manufacturing processes, wastewater volumes) are recorded on the basis of consumption and activity data and processed using standardized emission and reduction factors. In those cases where no site-specific data are available, published values and industry-related emission factors are used. The calculation also takes account of mitigation using filtration and treatment technologies such as selective catalytic reduction (SCR), wastewater treatment and waste oil incineration.

The data are based on direct measurements (for steel production installations subject to the E-PRTR) and on calculated values for installations that are operated by other businesses and whose emissions are not measured directly. Extrapolations and estimates are used to facilitate consolidated and timely information. They are based on E-PRTR reporting, internal production data and external emission factors. A degree of uncertainty results from, for example, the assumptions used in extrapolating the production data and the use of standard factors in modeling. The scale of this uncertainty depends on the reference sources consulted.

Lastly, in connection with this disclosure requirement, it should be noted that the term “installation” is not defined in ESRS E2-4 and may therefore be specific to a given report. This means that the system boundaries applied in the report may deviate from the legal definition of installations in accordance with E-PRTR, which may result in differences in the respective reported emission values.

E2-6 – Anticipated financial effects from pollution-related risks and opportunities

In the reporting year, there were no major environmental incidents or deposits within the meaning of ESRS E2 (see Annex A of Regulation (EU) 2023/2772). An environmental incident is a sudden incident caused by people that interrupts operations or the supply chain and is associated with the release of substances, vibrations, heat, noise, odors or other emissions into the air, water or soil. A deposit is an accumulation of substances in the environment that may be caused by regular operations, incidents or disposal processes. As no such incidents or deposits occurred in the reporting year, there was no related capital or operating expenditure.