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A Sustainable Future for People, Planet, and Products

A Sustainable Future for People, Planet, and Products
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A Sustainable Future for People, Planet, and Products

Product catalog summary
Stakeholder Letter
Dematic addresses post-pandemic supply chain challenges by emphasizing innovation and sustainability. The company aims to be an employer of choice and focuses on reducing its environmental footprint, achieving EcoVadis Platinum ratings and partnering with Google Cloud for carbon neutrality.
Executive Summary
Dematic is transforming global supply chains through digitalization and e-commerce, operating in over 35 countries with a workforce of over 11,000, providing intelligent, automated solutions across various industries.
About Dematic
As part of the KION Group, Dematic is committed to sustainable commerce, aligning with the United Nations 2030 Agenda, and operates with values of integrity, collaboration, courage, and excellence.
Sustainability Strategy
Dematic integrates sustainability into its operations, focusing on people, planet, and products, including efficient products, occupational health and safety, and limiting climate change impact.
2022 Sustainability Achievements
  • People: Reduced Lost Time Injury Frequency Rate by 40%, increased employee engagement, and invested in community support.
  • Planet: Reduced Scope 1 and 2 GHG emissions by 24% since 2020, achieved 81% ISO 14001 certification.
  • Products: Achieved EcoVadis Platinum ratings, partnered with Google Cloud for carbon neutrality.
Sustainable Development Goals
Dematic aligns its efforts with the United Nations Sustainable Development Goals, focusing on areas where it can have the greatest impact.
Governance
Dematic follows KION Group's governance structures, emphasizing ethical, value-oriented, and law-abiding business activities, with streamlined compliance risk assessments and a Supply Chain Due Diligence Assessment.
Materiality
Dematic's materiality approach is based on KION Group's analysis, identifying key areas of action in sustainability strategy, with engagement activities including innovation showcases and employee surveys.
People
Dematic focuses on empowering its workforce through talent development and creating a rewarding workplace, with initiatives like LinkedIn Learning and the opening of Dematic Engineering India, emphasizing gender diversity.
Workplace Safety and Health Initiatives
Dematic emphasizes workplace safety and accountability, with 82% of sites ISO 45001 certified, aiming for 100% by 2024, and initiatives like the road-warrior program and monthly toolbox talks.
Diversity and Inclusion
Dematic values diverse perspectives, establishing Employee Resource Groups (ERGs) to foster inclusive workplaces, and promotes a diverse supply chain with significant purchases from minority, veteran, and women-owned businesses.
Community Engagement
Dematic engages in community support through volunteering and donations, with initiatives like the Pro Bono Thought Leadership Marathon and humanitarian aid for Ukraine.
Environmental Sustainability
Dematic is committed to reducing its environmental impact, achieving a 24% reduction in GHG emissions since 2020, a 37% decrease in water withdrawal, and aims for 100% ISO 14001 certification by 2024.
Supply Chain Sustainability
Dematic focuses on building a sustainable supply chain, aiming for EcoVadis ratings for strategic suppliers and sustainability data sharing by all high-risk suppliers by 2023 and all direct suppliers by 2025.
Introduction
Dematic's sustainability report outlines their approach to sustainable supply chain management, focusing on aligning supplier requirements, assessing risks, and improving sustainable capabilities collaboratively.
Three-Level Approach to Sustainable Supply Chain Management
1. Require Supplier Alignment: Ensuring suppliers meet Dematic's sustainability standards.
2. Assess Each Supplier: Evaluating suppliers' risk levels and capabilities.
3. Continually Improve Sustainable Capabilities: Working with suppliers to enhance their sustainability practices.
Sustainably Driven Customer Solutions
Dematic aims to deliver sustainable solutions by focusing on data-driven improvements in logistics, enhancing worker safety, reducing energy consumption, minimizing material waste, and improving data insights.
Circular Approach
Dematic adopts a circular approach to product lifecycle management, aiming for 100% of new products to meet global sustainability standards by 2027, with Life Cycle Assessments (LCAs) supporting a Cradle to Cradle® approach.
Product Innovation
Dematic focuses on high-efficiency motor drives, noise reduction, and ergonomic workstations to enhance product sustainability and worker safety, with new technologies reducing energy usage and greenhouse gas emissions.
Research and Development
Dematic's R&D teams work to exceed customer expectations by establishing energy consumption baselines and exploring energy regeneration techniques to enhance product sustainability.
Partnership with Google Cloud
Dematic collaborates with Google Cloud to integrate AI and ML technologies, improving operational efficiencies and reducing environmental impact through enhanced data insights and inventory management.
Product Safety
Dematic prioritizes product safety by adhering to global safety standards and implementing rigorous safety processes, with Automated Guided Vehicles (AGVs) designed to meet stringent safety requirements.
Conclusion
Dematic continues to innovate and support sustainable commerce through intelligent automated solutions, with a global network of over 11,000 employees and a commitment to safety and sustainability.
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Catalog excerpts

A Sustainable Future for People, Planet, and Products-1

A Sustainable Future for People, Planet, and Products 2 0 2 2 A N N UA L S U S TA I N A B I L I T Y R E P O R T

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A Sustainable Future for People, Planet, and Products-2

Table of Contents S TA K E H O L D E R L E T T E R . . . . . . . . . . . . . . . . . . . . 0 3 E X E C U T I V E S U M M A RY. . . . . . . . . . . . . . . . . . . . . . 0 4 About Dematic Sustainability Strategy Dematic’s 2022 Sustainability Achievements Sustainability Steering Committee Sustainable Development Goals Governance Materiality PE O PL E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Empowering Our People Health & Safety Diversity Supplier Diversity Communities PL A N E T. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

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Dear Stakeholders, The global restart that followed the easing of pandemic restrictions created significant supply chain challenges worldwide. Companies looked to Dematic for guidance and solutions to not only rebuild the efficient flow of commerce, but also to reimagine it. This is where Dematic shines — through thoughtful innovation and a shared commitment to improving quality of life, while helping our customers achieve their sustainability goals. Sustainability begins with prioritizing people. We aim to be an employer of choice and to provide our team with learning and development opportunities...

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Executive Summary Power the Future of Commerce Dematic continues the transformation of global supply chains to embrace trends in digitalization and e-commerce. We design, build, and support intelligent, automated supply chain solutions that unlock measurable value for customers in a wide variety of industries — general merchandise, grocery, food and beverage, healthcare, apparel, and many more. With research and development engineering centers, manufacturing facilities, and service centers located in more than 35 countries, the Dematic global network of over 11,000 employees has helped achieve...

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About Dematic Power On. Together. As a global company, we acknowledge and embrace diverse ideas and perspectives. By engaging with customers, suppliers, team members, and other stakeholders, we contribute to the United Nations 2030 Agenda for Sustainable Development for a peaceful and prosperous planet. We envision a responsible and sustainable future of commerce, one where vital resources flow smoothly to consumers and efficiently to where they are most needed. Dematic is part of the KION Group, a global leader in industrial trucks, supply chain solutions, and related services. At Dematic, and...

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Sustainability Strategy People, Planet, and Products The principles of sustainability are woven into every aspect of our business — from interactions with our stakeholder base to the processes we employ to the improvements we make to customer operations. EXECUTIVE SUMMARY We aim to be an employer where people want to work. Occupational health and safety is Dematic's approach to sustainability has been formed through equally valuing people, planet, and products. The holistic and intentional application of sustainability throughout the company helps ensure our position as a global leader in intelligent...

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DEMATIC EXECUTIVE SUMMARY r Reduced Lost Time Injury Frequency Rate (LTIFR) by 40% through an emphasis on the importance of workplace safety and accountability to each other. Met 82% ISO 45001 certification rate, nearing our goal of 100% by 2024 with a continued focus on health and safety across the company. r Conducted a workshop ^ with a multidisciplinary team of sustainability experts along with key stakeholders to determine the strategic products that will be analyzed during 2023 in the first phase of Life Cycle Assessment (LCA) generation, as we progress toward a sustainability-focused portfolio....

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Sustainability Steering Committee Aligning to KPIs Dematic’s Sustainability Steering Committee, led by Dematic President and KION Executive Board Member, Hasan Dandashly, is responsible for integrating our identified areas of action into all business operations and processes through established quantitative targets, executed against key performance indicators (KPIs). Our areas of action are connected to an individual leader who helps ensure alignment with our KPIs and oversees our progress. Sustainable Development Goals Committed to Supporting a Global Effort Dematic sustainability efforts are...

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Governance Weaving Integrity into All We Do Dematic’s enduring commitment to good governance is in lock step with that of our parent company, KION Group, and their established structures, programs, and standards inform decisions we make as an organization. The KION Group Code of Compliance serves as the primary source of rules for what we consider ethical, value-oriented, and law-abiding business activities. Along with this code, additional policies help communicate and set the standards and expectations for a wide range of activities within Dematic. We prioritize these policies through clear...

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Materiality Shared Stakeholder Priorities Dematic’s approach to materiality is based on analysis undertaken by KION Group, which was updated in 2022. The process included a detailed internal examination across all regions as well as global surveys of key stakeholder groups. Opportunities and risks for corporate activities were considered on the basis of the United Nations SDGs, as were the positive and negative impacts of company activities on the environment and society. Based on these findings, we identified seven key areas of action in our sustainability strategy as well as in this report....

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EXECUTIVE SUMMARY People Sustainability Starts Here Dematic designs, builds, and supports intelligent automated solutions, but that tells only part of our story. Yes, we deliver world-class products, but everything we do is ultimately human-centered. How do we improve the lives of our customers? How do we make our communities more vibrant? How do we make our workplaces more rewarding? These are the types of questions we challenge ourselves with every day. And, every day, we’re making greater strides. 11 Annual Sustainability Report

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