Strategy

ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model

Our own workforce is made up of our own employees, i.e., people in a direct employment relationship with a thyssenkrupp company, and of non-employees. In our presentation of policies, actions and targets, we always indicate whether these also apply to non-employees.

The general procedure for performing the materiality assessment and the interaction of material impacts, risks and opportunities with the strategy and business model is described in the section headed “ESRS 2.” In order for this analysis to consider the perspective of the “own workforce” stakeholder group as fully as possible, various areas of the Corporate Function Human Resources were involved. The following table shows the material impacts, risks and opportunities for thyssenkrupp in respect of its own workforce, which we identified in the double materiality assessment. They are additionally explained in this subsection.

With regard to all policies and actions discussed in this section, thyssenkrupp considers all local laws applicable to thyssenkrupp companies.

Material negative impacts

The materiality assessment identified four potential and one actual negative impact. Our systematic and continuous risk management has the goal of minimizing negative impacts on the workforce as far as possible by means of corresponding actions.

In terms of working conditions, a potential negative impact concerns job security. In the past fiscal year, we continued to press ahead with our portfolio and structural optimization measures. These are resulting in restructuring measures in some businesses, where employees may be affected by workforce adjustment measures.

In connection with labor rights, there is a potential negative impact in a very small number of countries in respect of freedom of association and collective agreements because these countries either restrict these rights in part or such rights do not exist at all. In these countries, employees’ options for social dialog may be limited.

An actual negative impact was identified in the area of occupational safety. For production employees in particular, long-term physical activity may result in impaired health or work-related ill health. Any deviation from our occupational safety and health requirements may result in accidents. However, the investigation of accidents at thyssenkrupp show that these have no systemic causes; instead, they are usually isolated cases.

Another potential negative impact for employees arises from violating the ban on discrimination and a lack of equal opportunities. This may result in stress and the reduced well-being of those concerned. Depending on workplace dynamics, some employees may be at greater risk of experiencing unequal treatment or discrimination in the workplace. To prevent this negative impact, all the alleged cases reported are investigated systematically.

Material positive impacts

The positive impacts mainly arise for the group’s own employees who are in a direct employment relationship with a thyssenkrupp company. We use the opportunities available to us to create an attractive working environment.

The materiality assessment identified an actual positive impact in the area of training and development. For many years, thyssenkrupp has accepted its responsibility to provide apprenticeships. In fiscal year 2024 / 2025, we offered training in more than 60 apprenticeships in Germany. The apprenticeship training rate in Germany was 5.1%, which exceeds the company’s own needs. The continuous professional training of our employees is also important to us. In addition to the continuing professional training provided by the businesses, the thyssenkrupp Academy offers our employees a broad portfolio of internal continuing professional training options. Employees benefit from improving their qualifications by strengthening their employability.

thyssenkrupp endeavors to create an environment in which employees with different characteristics and needs can develop freely and unlock their full potential. We foster equal opportunities using a variety of formats and measures – from gender-neutral language in job advertisements in recruiting, through flexible working (time) models, to supporting the creation of employee networks. As early as 2015, thyssenkrupp issued a joint statement with the company’s employee representatives which expressly committed to identifying and fostering the potential of employees with disabilities and to creating the necessary workplace environment, taking account of local legislation. These measures impact employees positively in many ways. They foster a workplace culture based on mutual respect and strengthen employees’ satisfaction, motivation and sense of belonging.

Our range of preventive health measures also has a positive impact on our employees’ well-being. These measures not only focus on promoting physical health but also on strengthening mental health.

Risks and opportunities arising from dependencies in connection with own workforce

In some of the countries in which thyssenkrupp operates, there is a potential heightened risk that human rights – especially the ban on trafficking in human beings, child and forced labor – cannot be respected in full, for example, due to inadequate government control mechanisms or deviating legal provisions. The possible violation of human rights is a particular risk for people employed in these countries. However, our regular risk assessment has not revealed any specific risks for thyssenkrupp companies and their workforce.

In the context of the growing global shortage of skilled labor, inadequate employee training and development harbors the risk that not enough qualified specialists are available to effectively execute orders in due time and to ensure continuous improvement and innovation. However, targeted training and the continuous fostering of employees’ professional development offer the opportunity of increasing productivity thanks to improved specialist skills, engendering the loyalty of thyssenkrupp’s existing employees and to making thyssenkrupp an attractive employer for potential candidates.