Impact, risk and opportunity management

S1-1 – Policies related to own workforce

Policies for handling material impacts, risks and opportunities

Our approach to managing the material impacts, risks and opportunities relating to our own employees is anchored in a number of policies. The overarching target is unambiguous: people are the focus at thyssenkrupp. Overarching policies may be expanded or supplemented by local regulations that are applied only for certain countries, entities or sites.

Policies relating to working conditions and respect for human rights

We are committed to respecting internationally recognized human rights and the principles of fair working conditions. In this connection, we unequivocally reject trafficking in human beings, forced labor, child labor and all forms of discrimination, and promote equal opportunities. The framework for our conduct is shaped by applicable local legislation, the thyssenkrupp Code of Conduct, our policy on human rights and environmental due diligence obligations and the International Framework Agreement (IFA). Overarching information on the policy for human rights and environmental due diligence obligations can be found in the section headed “ESRS E2 Pollution.”

Policies for occupational safety and health

We accord high priority to occupational safety and health. Our mindset and our rules for dealing with the material impacts are consolidated in the “Occupational safety and health” policy.

Policies for dealing with discrimination and fostering equal opportunities

The ban on discrimination is anchored in the thyssenkrupp Code of Conduct and in the principles for human rights and environmental due diligence obligations. We consider ensuring equal opportunities for persons with disabilities to be a corporate duty and, back in 2015, we committed to this in a joint statement with the Group Works Council and the group representatives for severely disabled persons. Our goal is to create a working environment in which all employees can contribute on the basis of their abilities and needs.

thyssenkrupp requires all employees, managers, managing directors and executive board members to ensure a working environment that is free from discrimination on the basis of gender, skin color, religion, nationality, political or other convictions, ethnic origin, disability, age, sexual orientation and other factors and has explicitly anchored this in the Code of Conduct and principles. The reporting and remediation process described in subsection “S1-3” applies to incidents of discrimination.

Explanations regarding the material impacts, risks and opportunities without policies

For corporate strategy reasons, thyssenkrupp has not established any central policies relating to the material impacts, risks and opportunities in connection with secure employment and training and development. The rationale for this is explained in more detail below.

In the context of job security, if restructuring measures are needed, we work with the segments’ HR teams to create solutions that enable them to implement any necessary workforce adjustment measures in the most socially responsible way possible, taking account of the local situation. In many countries, the use and design of fixed-term employment contracts or employment contracts without guaranteed working hours is regulated by law. We are also bound by collective agreements in many countries.

In our mission statement, we commit to our employees’ continuous professional development as one of the key pillars of our conduct. However, given the heterogeneity of our products and business models, the requirements in terms of employee training and development differ. For this reason, it is the responsibility of the local entities to identify training needs and provide suitable training courses. The employees of thyssenkrupp entities which have a service agreement with the thyssenkrupp Academy can also access an overarching range of training courses.

S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts

thyssenkrupp values the views of its employees. They are engaged directly in the form of surveys like the annual thyssenkrupp Employee Pulse Check and indirectly via the codetermination bodies and trade unions. In addition, regular dialog formats such as “klar:text” give employees the opportunity to directly question the Executive Board or other decision-makers and to present their own views. The Corporate Function Human Resources also speaks regularly with the employee representatives.

Once a year, the company carries out the groupwide Employee Pulse Check, a brief online survey on employee satisfaction and success factors in change such as leadership and communication. All segments participated in 2025, giving almost all employees the possibility to provide feedback. As a result, the survey’s reach was slightly higher than a year earlier. The main findings are reported to the Executive Board and Supervisory Board of thyssenkrupp AG and to the employee representative body. The business-specific findings are analyzed locally and serve as the basis for a more in-depth dialog aimed at developing improvement measures. The continuous increase in the response rate in recent years highlights employees’ interest and their willingness to provide feedback. The annual survey is conducted by the Corporate Function Human Resources and sponsored by the Chief Human Resources Officer.

At thyssenkrupp, engagement with the employee representatives takes place at different levels. In the context of codetermination and in accordance with statutory provisions, the interests of employees worldwide are advocated in the Supervisory Board of thyssenkrupp AG by the ten employee representatives (including one representative of the group executives and three trade union representatives). The employee representatives therefore make up half of the Supervisory Board.

At group level, thyssenkrupp additionally maintains an active social partnership with the Group Works Council, the European Works Council, the Group Executives’ Committee and the trade unions represented at thyssenkrupp. The Corporate Function Human Resources, under the leadership of the Chief Human Resources Officer, ensures the engagement of the employee representatives. It meets regularly with the Group Works Council and its relevant expert committees, jointly preparing group works agreements on issues that are subject to codetermination. The European Works Council is the body for social dialog and the representation of employee interests at the European level. The existence and composition of the European Works Council are governed by the Agreement on European Dialog and Information to and from Employees in the European Group Companies. On the basis of this agreement, we inform and consult the European Works Council in advance of relevant, cross-country / multilateral operational changes that will affect more than one country.

thyssenkrupp has concluded an IFA with the Group Works Council and the representatives of Germany’s IG Metall trade union and IndustriALL Global Union on respect for human rights and the ILO Core Labor Standards based thereon. Compliance with this agreement is monitored by our International Committee as the relevant codetermination body. At least once a year, the Chief Human Resources Officer of thyssenkrupp AG reports to the International Committee on the current implementation status and compliance with this agreement. Members of the International Committee, the Chief Human Resources Officer and the Corporate Function Human Resources regularly visit selected sites and countries to ensure compliance with the IFA and human rights due diligence obligations.

In Germany, the interests of young employees up to the age of 18 and all persons in training are represented by the youth and trainee representatives. In accordance with § 178 of Germany’s Social Security Code IX (SGB IX), the representatives for severely disabled employees promote the integration of severely disabled persons into the company office or site, represent their interests and provide them with advice and assistance. Outside Germany, the representation of and engagement with employees with disabilities take place in accordance with statutory requirements and local regulations, for example, via the human resources departments. In addition, thyssenkrupp supports the creation of employee networks to enable employees to discuss their experiences and raise their concerns to the relevant bodies.

S1-3 – Processes to remediate negative impacts and channels for own workforce to raise concerns

Various channels are open to our workforce for reporting possible violations or grievances. In the first instance, managers, codetermination bodies and trade union representatives at the company are the direct points of contact for reporting and resolving incidents at the local level. Incidents can also be reported by email or anonymously via a central system to the responsible points of contact within the company. The email addresses and ways to access the online tool are published on the corporate website (www.thyssenkrupp.com). All channels are available to both thyssenkrupp employees and non-employees, and to representatives on the codetermination bodies. Remediation processes involving the relevant corporate functions and stakeholders have been defined to review and process potential violations. The whistleblower systems are operated by external providers while the mailboxes for submitting reports are managed internally.

The workforce is regularly informed about the established processes and reporting channels, for example, via newsletters or posters. thyssenkrupp protects the identity of whistleblowers by providing a secure system. All information is treated in confidence and reports may be submitted anonymously. If a whistleblower provides their contact details, they will receive feedback on their report. Actual and potential negative impacts that are reported should be ended as quickly as possible, their causes investigated and, depending on the findings, corresponding remedial action initiated. The remedial process also includes an assessment of effectiveness.

As provided by the IFA, we have established the International Committee as a codetermination body to monitor implementation of the agreement by thyssenkrupp. Another task of this committee is to work with the employer representatives to address potential or actual human rights violations and develop solutions.

thyssenkrupp’s Corporate Function Human Resources is responsible for managing the remedial process for incidents relating to human and employee rights or discrimination. Depending on the circumstances, other departments and committees may be involved in the process.

The effectiveness of the channels and their recognition is measured by regularly monitoring access figures during meetings of the International Committee. Assessment of the speak-up culture as part of the annual Employee Pulse Check is a further indicator of the degree to which employees trust the established reporting structures.

S1-4 – Taking action on material impacts, risks and opportunities related to own workforce and the effectiveness of those actions

We implement many actions to prevent negative impacts or risks to our workforce and strengthen potential positive impacts or opportunities. If an action is not compatible with local legislation, the applicable legislation shall have precedence.

Respect for human rights

At thyssenkrupp, respect for human rights is non-negotiable. To ensure that all employees worldwide are aware of this, mandatory training on human rights and environmental due diligence obligations is conducted worldwide.

In order to comply with the provisions of the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG), we perform an annual risk assessment for our companies worldwide so that preventive action can be initiated if necessary. Moreover, we systematically examine all potential violations reported via the various channels, end any violation if the initial suspicion is confirmed and investigate the causes in the context of a remedial process to mitigate the risk of similar violations in the future. We take preventive and remedial actions on the basis of risk and as necessary. The preventive action includes regular training for our employees and communication of the channels for whistleblowers. The evaluation of the incidents reported via the established whistleblower systems enables us to assess whether the implemented measures are effective in preventing human rights violations.

The measures are intended to address the material impacts on human rights, in particular forced and child labor, freedom of association and discrimination. They apply worldwide and are implemented continuously without a defined end date, although the exact details may vary locally and are subject to local laws applying to the respective thyssenkrupp companies.

Job security and labor rights

In connection with refocusing the portfolio, various M&A, restructuring and reorganization measures were examined, prepared and in some cases already realized. These measures were accompanied by activities required by labor and codetermination law, e.g., corresponding agreements with the employees. In fiscal year 2024 / 2025, necessary job reductions affected around 3,100 employees. Where necessary, our businesses are implementing additional restructuring measures to enable an optimal response to changing markets. This has not only been done in the steel business but also for individual businesses in other segments. The goal is to make the group and its businesses more profitable and resilient in the long term. For this reason, we work with the segments’ HR teams to develop new solutions that make it possible to implement necessary workforce adjustment measures in the most socially responsible way possible.

thyssenkrupp considers itself to be a fair employer that is conscious of its social responsibility to its employees. A key component in this regard is the internal job market. The possibility of recruiting employees internally is one of the central pillars of our groupwide HR policy.

These measures are connected with the impacts on secure employment. They apply worldwide, although the exact details may vary locally and are subject to local laws. The measures are implemented continuously and have no defined end date.

Occupational safety and health

Occupational safety and health are important topics at thyssenkrupp and are consolidated in the Occupational Safety and Health (OSH) department. Our goal is to continuously improve our occupational safety and health management, thus avoiding accidents, work-related illnesses and stress.

When they start work, our own employees and non-employees must participate in a safety briefing adapted to their role. If relevant, they are also provided with the appropriate protective equipment to enable them to safely perform their work duties. In the context of prevention, regular workplace inspections, hazard assessments, accident investigations and occupational health advice for employees help to minimize occupational safety and health risks.

Some employees have free access to the services of the Employee Assistance Program (EAP), which provides access to professional counseling and support from external cooperation partners on dealing with stressful professional or personal challenges.

This year again, our “we care” days focused on occupational safety and health topics. A central worldwide activity was the app-based “we care Challenge” involving teams from 37 countries. We received 20 nominations for the “we care Award,” three of which received a prize. In the past fiscal year, we also continued the “leaders care” initiative focused on supporting managers in fulfilling their responsibility for occupational safety and health.

The measures aim to address the material impacts, risks and opportunities relating to occupational safety and health. Their effectiveness can be measured on the basis of trends in the accident frequency rate. Evidence of the effectiveness of health promotion measures can be seen in, for example, employees’ interest in the company’s healthcare offerings. All measures apply worldwide and have no defined end date.

Equal opportunities in the workplace

Openness, equal opportunities and mutual appreciation are among the core values of our corporate culture. In the past fiscal year, we again organized a wide variety of events to raise awareness for equal treatment both internally and externally and to strengthen collaboration, psychological safety and a sense of belonging for all employees.

thyssenkrupp has made a public commitment to values such as openness and tolerance and opposes discrimination. This has been demonstrated through our campaign against hatred ahead of Germany’s parliamentary elections and through our renewed participation in the Christopher Street Day event in Cologne. We also use occasions such as the International Day of Persons with Disabilities or International Women’s Day for specific celebrations and to support our internal employee networks. With our employer branding campaigns we are raising the visibility of employees with different backgrounds in our workforce. We are also seeking to strengthen equal opportunities in our company’s apprenticeship programs.

We aim to ensure that all candidates are given equal consideration in the selection process, particularly when filling management positions. There are also targeted offers for high potentials to promote their development and further improve their career opportunities.

We seek to enable our employees to achieve a better work-life balance through the use of flextime and part-time working models, job sharing, hybrid working and temporary working from abroad. At some sites, employees also benefit from childcare offerings.

The measures are implemented continuously and have no defined end date. The exact design of measures to flexibilize working hours and improve work-life balance is decided locally, taking account of the prevailing conditions and requirements. Various metrics – including the trend in the part-time working ratio, the proportion of employees with disabilities and the proportion of women in leadership positions – enable us to assess the effectiveness of the measures.

Training/continuing professional development and employee development

At thyssenkrupp, training remains a high priority. Our commitment in this area is an investment in the future, not only in light of the shortage of skilled labor. For this reason, we are implementing extensive measures to attract people to do an apprenticeship at thyssenkrupp, especially in Germany. We meet potential apprentices on their terms – on social media, at information events in schools and universities, on training platforms or using other employer branding instruments such as digital parents’ evenings in collaboration with the Federal Employment Agency. Apprenticeships at thyssenkrupp are regularly rated as very good in internal surveys and on external portals. In Germany, mentoring initiatives like “Paten für Arbeit e.V.” and innovative training concepts help ease the way into an apprenticeship. Regular exchange with companies outside the thyssenkrupp group, for example, through the “Allianz der Chancen,” an initiative for new ways of working in which currently 71 companies address topics such as strengthening the relevance of apprenticeships, help to counter the shortage of skilled workers.

In addition to the businesses’ training and development activities, the thyssenkrupp Academy provides internal training offerings and transformation support. The offerings include customized curricula for managers and employees, digital learning services and individual solutions for teams and organizations. The high quality of the offerings and compliance with international standards are reflected in its ISO 29993 certification.

In the past fiscal year, thyssenkrupp identified more than 1,800 talents worldwide (i.e., employees with the potential for more senior specialist and leadership roles). Targeted development is supported by regular development dialogs, feedback and the use of diagnostic methods to determine their status quo. Cross-segment networking formats such as the Talent Summit, various forums and workshops are intended to contribute to the development and retention of this important target group.

The measures are implemented continuously and have no defined end date. Apprenticeships are offered in Germany especially, whereas continuing professional development and talent development are provided worldwide.