E3-3 – Targets related to water and marine resources

To date, thyssenkrupp has not defined any groupwide quantitative targets related to water management within the meaning of ESRS E3. This is because the individual water-related risks and actions are very site-specific and any heterogeneity within the company is related to certain industries and products. Instead of setting general targets, thyssenkrupp has taken a decentralized management approach on the basis of site-specific programs like the integrated environmental management systems or specific regulations such as the water management plan of thyssenkrupp Steel Europe AG.

Nevertheless, the effectiveness of water-related policies and actions is subject to needs-based monitoring. In the context of the water management plan at the Duisburg-Nord site, this is done by monitoring water withdrawals, water levels and wastewater quality. The contingency plan for water-dependent processes is regularly reviewed in the context of business continuity management. Human rights and environmental due diligence obligations are implemented via established risk and control processes, including site and supply chain assessments and the monitoring of the measures initiated.

E3-4 – Water consumption

In connection with this disclosure requirement, thyssenkrupp publishes information on the water consumption of its own operations. The goal is to establish an understanding of the scope of and trends in water consumption. In addition to total water consumption, the disclosure covers consumption in regions with water risks, the volume of recycled and reused water and information on stored water volumes. The company’s water intensity is also disclosed. The supply sources, abstraction points and transfer and discharge locations are reported separately to provide transparency as to the origin and destination of water streams.

The water consumption data are recorded using various methods including direct measurement (38%), calculations based on operating parameters (21%), modeling (9%), estimates(20%) and invoice data (12%). The figures provided represent the respective proportion of total water consumption. Additionally, the assumptions, databases and standards used in estimates and calculations are documented. Stored water volumes are measured at the end of the respective fiscal year.

Water quantity and quality in the relevant catchment areas are assessed on the basis of a site-related analysis. The assessment of water quantity is based on water stress, defined as the ratio of total water demand to available renewable water resources. This is used to assign sites to risk categories ranging from very low to very high. By contrast, water quality is assessed on the basis of the biological oxygen demand (BOD). This indicator measures the oxygen required by microorganisms to break down organic substances in fresh water and enables conclusions to be drawn about the nutrient and pollutant content and ecological function of water resources. A site is classified as being in a region of water stress if at least one high water stress is present or if the quality of the available fresh water is assessed as very poor. Due to the data recording methods used, the determination of the water consumption KPI in regions of water stress considers the entire water consumption of reporting entities if at least one of their sites is in a region of water stress, with the result that the value disclosed in this annual report may be higher than the actual consumption in these regions.

The data are obtained from both internal and external information sources. The internal sources are site-related consumption data such as water withdrawals, discharges and recycling or storage volumes. External databases are also used to provide thresholds and comparative values for both water quantity and quality. The information is used to assess the conditions in the immediate vicinity of sites. In this way, it is possible to incorporate regional differences in the availability and quality of water resources into the assessment.