Metrics and targets
E5-3 – Targets related to resource use and circular economy
To date, thyssenkrupp has not defined any uniform groupwide targets related to resource use and circular economy within the meaning of ESRS E5. The reason for this is the heterogeneous nature of the businesses and sites associated with the different resource-related requirements and actions. Instead of setting general targets, thyssenkrupp has taken a decentralized management approach on the basis of site-specific environmental and energy management systems and the implementation of human rights and environmental due diligence obligations.
The effectiveness of environmental and energy management is monitored by, for example, audit findings, external certifications (e.g., in accordance with ISO 14001 and ISO 50001) and the annual groupwide environmental data collection process.
The effectiveness of the implementation of human rights and environmental due diligence obligations is monitored using established risk and control processes, including the assessment of the risks and incidents identified at the sites and in supply chains and the monitoring of the remedial actions initiated.
E5-4 – Resource inflows
thyssenkrupp has identified material resource inflows for its own operations. This analysis covers products, materials and property, plant and equipment. It also considers critical raw materials and rare earths that may be potentially relevant for the company’s own operations and along the value chains.
Product and materials inflows were analyzed using a weight-based evaluation of purchasing data. The focus is on metallic raw materials such as ores and coke, as well as coal, base metals, processed metal products and mineral products. These materials and products are central to metallurgical processes, manufacturing processes, industrial plant engineering and the operation of technical equipment. Other products used in these areas include engineering plastics, chemical auxiliaries, electrical components and coatings, which are also considered to be relevant resource inflows.
The analysis found that neither biological materials nor packaging are material resource inflows for thyssenkrupp. Compared with the technical materials and products used, both categories make up a negligible proportion by weight and were therefore not considered in any subsequent assessment.
The material property, plant and equipment are determined by assessing the relevant balance sheets. In this connection, technical installations, plant buildings, installations under construction and production-related equipment that serve as the physical basis of industrial value creation were identified as significant.
Potentially relevant critical raw materials and rare earths are identified on the basis of the definitions contained in Regulation (EU) 2024/1252 and the ERECON list. Their potential relevance to thyssenkrupp and the upstream and downstream value chain was determined by assessing specialist sources and based on the opinions of internal experts. The potentially relevant substances include metals for alloys and high-performance materials (e.g., aluminum, chrome, nickel and titanium), raw materials for energy storage systems and batteries (e.g., lithium, cobalt and graphite), chemical precursors (e.g., phosphorus, boron and fluorite) and rare earths (e.g., neodymium, dysprosium and yttrium) for use in magnets, sensors and electronics. This classification is subject to further analysis and verification.
At present, no full company-specific primary data are available for the proportion of components, intermediates and materials that are reused or recycled as secondary materials. To date, this information has not been recorded systematically and consistently as part of the procurement processes. Nevertheless, to enable a rough allocation of the proportion of circular materials to the total resource inflows, an estimated factor aligned with a circularity metric is applied. This is based on the global material flow balance which records and displays annual raw material inflows (renewable, non-renewable and secondary raw materials) as mass flows. It is assumed that the input mass becomes an output (emissions, waste, losses or recycled materials) at the end of the life cycle and only the proportion reused is deemed to be circular. By contrast, the primary inflows are viewed linearly, irrespective of whether they are renewable or not. Product service life, intensity of use and inventories are not considered because the balance represents an annual snapshot. The indicative factor is applied to the total resource inflows recorded and reflects the proportion of reused and recycled materials in relation to total resource inflows.
E5-5 – Resource outflows
In the context of this disclosure requirement, thyssenkrupp publicizes information on its resource outflows, including waste. The goal of this disclosure is to provide transparency about how the company contributes to resource efficiency by designing its products and materials in accordance with the principles of the circular economy and strategies for waste prevention and management. Information is provided on the circularity and durability of products and materials and on the volumes and treatment channels of the waste generated, supplemented by the composition of the company’s relevant waste streams.
Products and materials
At thyssenkrupp, the principles of the circular economy may be applied in both product design and production processes, with the goal of contributing to resource efficiency through design decisions – such as measures to extend the service life of products and improve their reusability and reparability, the technical optimization of materials and the return of materials to technical and biological cycles. In this connection, uniform definitions were used to identify the material products and processes designed in accordance with the principles of the circular economy. These definitions are aligned with relevant European legislation and established reference frameworks and are used in the assessment of the following examples. The specific calculation was performed by experts from the relevant segments and business units on the basis of qualified estimates.
Durability and service life extension
In the Steel Europe segment, the surface finish of ZM EcoProtect® was to receive improved corrosion protection as a contribution to extending the service life of outer paneling, especially in the automotive industry. In addition, high-strength and wear-resistant steel is used to ensure the longer service life of end products. This also applies to high-strength, non-oriented electrical steel, which may increase the efficiency and service life of electric motors by reducing losses and improving mechanical strength.
At Rothe Erde in the Decarbon Technologies segment, surface hardening is aimed at increasing wear resistance and extending the service life of slewing bearings. The induction hardening processes used are specifically aimed at strengthening critical functional surfaces such as raceways and gears; depending on the application, this is achieved by varying the hardness of the raceways and gear teeth. Shot blasting can be used additionally as a mechanical process to strengthen the surface, which serves to improve fatigue strength. Full-surface hardening ensures the even distribution of the hardness and is particularly suitable for high-load applications such as rotor bearings for wind energy installations. It is intended to increase resistance to friction and material fatigue.
The Automotive Technology segment also uses processes such as shot blasting and induction hardening to improve the fatigue resistance of crankshafts and springs. In addition, near-net-shape forging and the use of combined materials in joined crankshafts – manufactured from individual components that are linked together – should enable a material-efficient design that reduces resource consumption.
Reparability, disassembly, reuse and remanufacturing
In designing products and plants, thyssenkrupp applies concepts such as modularity, ease of disassembly and reparability to extend the service life, supplemented by remanufacturing services.
Uhde, Polysius and thyssenkrupp nucera in the Decarbon Technologies segment may specifically implement these principles in product and plant design by means of modular plant concepts, standardized components and the long-term availability of replacement parts. This system architecture aims to enable the targeted replacement or upgrade of modules without interrupting operation, as well as their easy disassembly and reuse. The electrolysis business of thyssenkrupp nucera also deploys approaches to remanufacture individual modules so that they can be used again in industrial applications. At Rothe Erde, maintenance services can be delivered to extend the service life of slewing bearings; rolling elements, seals and cages can be replaced, and raceways and gears can be reworked so that they can be returned to technical use.
In the Marine Systems segment as well, modular design concepts can increase the reparability of marine platforms such as frigates and submarines throughout their life cycle by planning the use of replaceable functional units to facilitate flexible repair. For example, entire mission modules and technical subsystems can be replaced without the need to take the entire platform out of service. In addition, targeted maintenance strategies and retrofitting concepts – to modernize sensors, drive technology and safety systems, for example – can contribute to extending service life.
Return to technical and biological cycles
To foster the use of closed material cycles, thyssenkrupp deploys approaches to return material flows to technical and biological systems.
In the technical area, Steel Europe has reduced its dependence on primary raw materials by using high-quality steel scrap in its bluemint® recycled product. Moreover, MillServices & Systems – part of the Materials Services segment – processes desulfurization slag from steel production for secondary uses such as fertilizers or construction materials. In addition, Uhde’s FTR® process is aimed at producing PET plastic with a recycled content and helping to close plastic cycles. An additional example is the Carbon2Chem® collaborative project, which uses steel mill gases in a pilot plant at the Steel Europe site in Duisburg to produce base chemicals such as methanol or ammonia; the aim is to reuse these substances as raw materials in industrial processes rather then emitting them.
In the area of biological substance recycling, Uhde has developed the PLAneo® process to manufacture polylactic acid (PLA) from bio-based lactic acid. The resulting polymer can be composted in industrial facilities and returned to the biological cycle at the end of its life cycle. The production process also integrates the fermentation and purification of lactic acid with PLA production, generating ammonium sulfate as a by-product that can be used as a fertilizer. In a joint project for advanced biofuels technology, Uhde is taking a thermochemical approach that uses gasification to convert materials like biowaste into biofuels such as synthetic diesel or sustainable aviation fuel (SAF) and into bio-based naphtha for use in chemical production processes; the aim is to replace fossil fuels and close material cycles.
Expected durability of the products compared with the industry average
Estimates by internal experts were used to determine the expected durability of selected product groups compared with the industry average. As no standardized industry averages could be identified for the expected durability of the analyzed product groups, the information given is based on the company’s internal benchmarks that result from product-specific durability indicators, validated test specifications and empirical values from the product life cycle.
Below is a structured presentation by business area.
Automotive Technology
The durability of safety-relevant vehicle steering systems was assessed on the basis of load changes that simulate typical conditions of use such as parking maneuvers, road vibration and various driving profiles. The goal is to preserve full function throughout the tested service life.
Mechanically adjustable steering column: 1 million load changes
Column EPS (brushless): 0.5 million load changes
Rack EPS (REPS): 0.5 million load changes
It should also be noted that service life testing in the Automotive Technology segment is generally based on individual customer requirements. The test specifications and assessment criteria may vary in scope, load profile and targets, depending on the customer. The benchmarks listed therefore serve as orientation and can be used in standardized development processes for the respective product groups. Moreover, no industry averages for expected durability could be identified for this product segment.
Decarbon Technologies
For selected product groups of thyssenkrupp nucera, Polysius, Uhde and Rothe Erde in the Decarbon Technologies segment, the expected durability was assessed on the basis of product-specific technical indicators.
Alkaline electrolyzers (nucera): 7,300 start-stop cycles
Cement plants (Polysius): design service life of 45 years for the entire plant
Ammonia/methanol plants (Uhde): design service life of 20 years for the main equipment
The durability of slewing bearings (Rothe Erde) was assessed on the basis of the raceway fatigue life in accordance with ISO/TS 16281:2008, in combination with the bearing service life models in accordance with DIN/ISO 281. This involved determining the loads that occur in the system under consideration and the load collective resulting from the typical operating states. The nominal service life of the raceways was calculated on the basis of the speed, load changes and planned operating time of the system. The aforementioned standards do not define a specific service life but provide the basis for comparison with the expected design service life of the entire system. In the case of wind energy applications, the design service life is usually 20 years – as defined in IEC 61400-1. However, the actual value to be considered depends on the specific OEM requirements.
Marine Systems
The design service life of military surface vessels and submarines was used as the indicator for assessing the expected durability. This indicator describes the technically planned service life in the case of correct maintenance and overhaul by the operator and can be used because it has been defined on the basis of engineering standards and specifies the dimensions of key structural and equipment components.
Submarines: design service life of 40 years
Frigates: design service life of 30 years
The actual service life depends on and can be extended by various factors such as regular maintenance, modernization and the operational concepts used. No industry averages for expected durability could be identified for these products.
Other businesses
This kind of durability assessment was not used by the Materials Services and Steel Europe segments. Materials Services is primarily concerned with trading and thyssenkrupp can exercise only limited influence on the durability of the products. For this reason, no systematic assessment of durability is performed. The main product of Steel Europe is a prefabricated or intermediate industrial product with a material function that is processed into a wide range of different downstream products. The actual durability is largely dependent on the respective end use – automotive, construction or packaging – so it is not possible to define a uniform product service life.
Proportion of recycled materials in products
thyssenkrupp uses a model-based process to estimate the proportion of recycled materials in the products it placed on the market in the reporting period. Due to the lack of primary data for the actual reuse of the materials contained in the products at the end of their life cycle, the calculation is based on the material volumes used in the production process.
The relevance of the material volumes used is classified on the basis of weight. For methodological reasons, packaging materials and proportions by weight below defined relevance thresholds are not included. Recyclability rates are used for the remaining material groups; they are derived from the technical literature and industry studies and from publicly accessible recycling statistics. These show the proportion of a material that is considered to be recyclable in principle using current technologies.
On this basis, a recyclable material content of around 95% was calculated. This value particularly reflects the strong focus of thyssenkrupp’s product portfolio on metallic materials and products, which have high potential for reuse.
The calculation represents a methodological estimation. The main uncertainties result from the assumption that resource inflows are representative of actual product composition and from the generalization of material groups through the use of general recyclability factors.
Waste
In the context of this disclosure requirement, information on the waste volumes generated by the company’s own operations are reported. The goal is to create an understanding of the waste, its treatment and the composition of the waste streams. This disclosure differentiates waste as hazardous and non-hazardous waste and by the recovery and disposal processes used. In addition, information is disclosed on non-recycled waste and the composition of the relevant waste streams.
Waste data are calculated using standardized definitions aligned with the requirements of the EU Waste Framework Directive (2008/98/EC) and supplementary legislative instruments. Three waste categories are recorded: non-hazardous waste, hazardous waste and radioactive waste. Non-hazardous and hazardous waste are further differentiated by the recovery and disposal processes used. With the exception of the preparation for reuse, this process is classified using relevant R and D codes as defined in Annexes I and II of the Waste Framework Directive. Radioactive waste is recorded only as a total volume and is not differentiated by recovery or disposal process. It is allocated to non-recycled waste.
In the reporting year, data were recorded by direct measurement, calculations based on operating parameters, modeling, estimated and invoice-based analysis. All waste data relate to activities and sites that are under the financial or operational control of thyssenkrupp.
Waste composition
The composition of the waste streams generated at thyssenkrupp vary depending on the economic activity. Steel production mainly generates metallurgical waste such as slag, metal-containing dust, slurries and oily residues from process water treatment. The production of components and plants mainly generated metallic processing waste such as shavings and abrasives and consumables such as lubricants and oil. In addition, packaging waste and – in isolated cases – construction and commissioning waste such as cables, paints and insulating materials may occur. The system and major assembly work in, for example, energy and process plant engineering or in maritime systems technology results in waste caused by maintenance, repair and retrofitting. Such waste includes metal residues, electronic components and various auxiliaries. The trading business, including material processing, contributes to waste mainly in the form of packaging materials such as wood and plastics, warehousing residues and production-related waste such as offcuts or shavings.
Materials in waste:
The relevant material groups in the aforementioned waste streams include:
Metals: iron, steel, aluminum, copper and other non-ferrous metals
Non-metallic minerals: slags, ceramic residues, refractory materials
Plastics: packaging materials, insulation, engineering plastics
Oily substances and chemicals: waste oil, cooling lubricants, emulsions, solvents
Wood: especially from packaging and means of transport
Electronic components: e.g., sensors and circuit boards
Internal experts from the businesses were consulted to identify the significant waste types and the materials contained therein. The assessment is based on an allocation of the waste streams to the relevant chapters of the European Waste Catalogue in line with Commission Decision 2014/955/EU. These estimates were determined on an indicative basis, aligned with operational experience and available information on waste streams from the areas of activity.