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Sustainable Innovation for People, Planet, and Products

Sustainable Innovation for People, Planet, and Products
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Sustainable Innovation for People, Planet, and Products

Product catalog summary
Stakeholder Letter
Michael Larsson, President of Dematic, underscores the company's dedication to sustainable innovation, focusing on people, planet, and products. Key efforts include reducing greenhouse gas emissions and improving workplace safety and efficiency.
Executive Summary
Dematic is a leader in intelligent automated solutions, operating in over 26 countries with more than 10,000 employees. As part of the KION Group, it aligns with the United Nations 2030 Agenda for sustainable development.
About Dematic
Dematic is a major player in supply chain solutions, driven by values of integrity, collaboration, courage, and excellence, aiming to foster a sustainable future for commerce.
Sustainability Strategy
The strategy emphasizes continuous improvement and innovation in people, planet, and products, focusing on high-performance products and minimizing environmental impact.
2023 Sustainability Achievements
  • People: Launched "Ready, Safe + Sound" safety pledge, achieved injury-free operations at various sites, and increased learning hours by 54%.
  • Planet: Joined SBTi for net zero by 2050, reduced CO2 emissions by 14.8%, and decreased total waste by 20%.
  • Products: Introduced noise reduction and ergonomic solutions, and enhanced energy efficiency with new motor drives.
Sustainability Steering Committee
Led by Michael Larsson, the committee integrates sustainability into business operations through KPIs, aligning with the United Nations Sustainable Development Goals.
Governance
Dematic follows KION Group's governance standards, emphasizing integrity and compliance, and adheres to global human rights and supply chain laws.
Materiality
Dematic's approach is based on stakeholder priorities, aligning with the United Nations SDGs to focus on areas with the greatest potential for positive change.
External Recognition
Dematic received high ratings from EcoVadis, placing it in the top 5% of companies for sustainability practices.
People
Focuses on talent development, health and safety, and community engagement, enhancing leadership programs and introducing a new safety pledge.
Health & Safety
In 2023, Dematic reduced Lost Time Injury Frequency Rate by 10%, injuries by 20%, and achieved zero fatalities. The company is on track for ISO 45001 certification by 2024.
Diversity
Dematic fosters inclusivity through Employee Resource Groups, launching DIVERSABILITIES in 2023, and received the 2024 Military Friendly Employer Bronze Designation.
Communities
Engaged over 1,700 employees in volunteer activities, contributing 3,361 hours to various causes, and partnered with the Captain Planet Foundation for educational programs.
Planet
Committed to environmental sustainability, achieving a 14.8% reduction in GHG emissions and ISO 50001 certification for energy management.
Waste
Reduced total waste by 20% in 2023 through improved processes and waste recovery programs, focusing on recycling and material reuse.
Environmental Initiatives and Waste Management
Implemented initiatives like pallet-reuse and waste-reduction programs, achieving significant waste reductions at facilities.
ISO 14001 Certification
Aiming for 100% certification by 2024, nearly all sites achieved certification by December 2023.
ESG Supplier Risk Management
Integrated ESG criteria into supplier selection, establishing a three-level risk management process to enhance sustainability and manage risks.
Supplier Diversity
Advanced its Supplier Diversity Program, spending over $9 million with certified diverse suppliers in 2023.
Sustainable Customer Solutions
Focuses on developing solutions that enhance safety, reduce energy consumption, and minimize waste, aiming for 100% sustainability assessment of new products by 2027.
Product Circularity
Committed to product circularity, conducting Lifecycle Assessments to support a Cradle to Cradle® approach.
Noise Reduction and Ergonomic Solutions
Launched a Noise Reduction Portfolio and ergonomic workstations to improve worker comfort and efficiency.
Product Innovation
Innovates with high-efficiency motor drives and automation solutions like AGVs and AMRs to reduce energy usage and enhance efficiency.
Software and Cloud Computing
Invests in cloud-native software to drive efficiencies and support sustainability, leveraging AI and machine learning.
Introduction
Introduced two new products to the Google Cloud Marketplace in 2023, focusing on reducing material consumption and improving energy efficiency.
Product Descriptions
  • Dematic Sprocket EAM Software: Streamlines maintenance management, improving workflow and minimizing costs.
  • Dematic WMS Software: Manages warehouses efficiently, integrating planning and operations to enhance flexibility and accuracy.
Sustainability Benefits
  • Mitigates waste through optimized transport and reduced emissions.
  • Efficient warehouse planning reduces energy use.
  • Eliminates over-provisioning and increases renewable energy use.
Product Safety
Prioritizes safety by assessing and mitigating risks, adhering to high standards like CE marking and UL certification.
Safety Standards and Participation
  • ANSI/ASME B20.1 – Safety Standard for Conveyors and Related Equipment
  • ANSI/ASME B30.13 – Safety Standard for Storage/Retrieval Machines
  • EN 619 – Safety and EMC Requirements for Mechanical Handling Equipment
  • EN 528 – Safety Requirements for Rail Dependent Equipment
  • ISO 3694-1 – Safety Requirements for Driverless Industrial Trucks
  • ISO 23979:202X(X) – Global Safety Standards for Mechanical Handling Equipment
Company Overview
Dematic designs and supports automated solutions for manufacturing, warehousing, and distribution, with a global presence and headquarters in Atlanta.
Conclusion
Dematic is committed to sustainable practices and innovative solutions, as highlighted in their Annual Sustainability Report published in June 2024.
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Catalog excerpts

Sustainable Innovation for People, Planet, and Products-1

SUSTAINABLE INNOVATION FOR PEOPLE, PLANET, AND PRODUCTS 2 0 2 3 A N N U A L S U S TA I N A B I L I T Y R E P O R T

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Sustainable Innovation 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 2023 Sustainability Achievements Sustainability Steering Committee Sustainable Development Goals Governance Materiality External Recognition PE O PL E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Talent Development Health & Safety Diversity Communities PL A N E T . . . . . . . . . . . . . ....

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Sustainable Innovation for People, Planet, and Products-3

D E M ATIC R E M A I N S AT TH E FO R E F RO NT O F R E VO LUTI O N I Z I N G G LO BA L S U PPLY C H A I N S A N D D R I V I N G TH E FUTU R E O F CO M M E RC E TH RO UG H S U S TA I N A B LE I N N OVATI O N . This approach goes beyond merely introducing new methods, ideas, and solutions. It entails a consistent dedication to actions that benefit our diverse stakeholders, including employees, customers, suppliers, and communities, as well as our planet. At Dematic, sustainability always starts with people. As a global company, we encourage our employees to bring their authentic selves to work,...

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Executive Summary P OW E R TH E FUTU R E O F CO M M E RC E Dematic designs, builds, and supports intelligent automated solutions empowering and sustaining the future of commerce for its customers in manufacturing, warehousing, and distribution. With research and development engineering centers, manufacturing facilities, and service centers located in more than 26 countries, the Dematic global network of over 10,000 employees has helped achieve successful customer installations for some of the world’s leading brands. Annual Sustainability Report

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A BO UT D E M ATIC Dematic is part of KION Group, which is among the world’s leading suppliers of industrial trucks and supply chain solutions. At Dematic, and throughout KION Group, we are guided by four shared values: integrity, collaboration, courage, and excellence. 10,000+ employees 26 countries $3.3B in revenue 5 Annual Sustainability Report As a global company, we acknowledge and inherently embrace diverse ideas and perspectives. By engaging with our customers, suppliers, employees, neighbors, and other stakeholders, we contribute to the United Nations 2030 Agenda for Sustainable Development...

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PEOPLE We strive to be an employer of choice where occupational health and safety is foundational to our culture. We are also committed to making the communities in which we operate better places. S U S TA I N A B I LIT Y S TR ATEGY People, Planet, and Products At Dematic, sustainability is a journey of continuous improvement and innovation that equally values people, planet, and products. The intentional application of this precept across the company helps ensure our position as a global leader in intelligent automation. PLANET We limit our effect on climate change through comprehensive footprint...

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DEMATIC DEMATIC’S 2023 SUSTAINABILITY ACHIEVEMENTS PEOPLE • Launched “Ready, Safe + Sound” safety pledge • Years injury free at the following sites: Salt Lake City, United States 13 years Dallas, United States 3 yrs with many other locations approaching 2+ yrs Nearly 100% covered with ISO 45001 certifications 15,000 hours of learning — a 54% increase in global workforce utilization of LinkedIn Learning® 6 active Employee Resource Groups with over 900 participants • Joined SBTi committing to net zero by 2050 • 14.8% reduction in Scope 1 & 2 CO2e since 2021 baseline year • 20% reduction in total...

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S U S TA I N A B I LIT Y S TE E R I N G CO M M IT TE E Aligning to KPIs Dematic’s Sustainability Steering Committee — led quarterly by Dematic President and KION Executive Board Member, Michael Larsson — 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). Dematic areas of action are connected to individual leaders who help ensure alignment with our KPIs and oversee our progress. S U S TA I N A B LE D E V E LO PM E NT G OA L S Committed to Supporting...

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G OV E R N A N C E Integrity in All We Do Our commitment to good governance is steadfast and aligned with that of our parent company, KION Group. We adhere to established structures, programs, and standards, which inform and guide our decision-making processes. The KION Group Code of Compliance is our north star, ensuring our business activities are conducted with integrity and in accordance with the law. In addition to this code, we prioritize Dematic standards for a wide range of activities and training through clear and consistent communications to employees, suppliers, and customers, emphasizing...

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Sustainable Innovation for People, Planet, and Products-10

Organizational Impact Climate Action Sustainable Supply Chain (Local) Environmental Protection Occupational Health & Safety Corporate Governance & Sustainable Leadership Circular Products & Business Model Innovation & Collaboration Diversity, Equity & Inclusion Product & Customer Safety Training & Education Business Ethics & Compliance Stakeholder Dialogue & Transparency Corporate Citizenship Responsible Product Portfolio Working Conditions Shared Stakeholder Priorities Business Relevance Key Areas of Action HIGH Annual Sustainability Report Areas of Action with Minor Importance Stakeholder Relevance...

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E X TE R N A L R ECOG N ITI O N Dematic remains committed to corporate sustainability and stakeholder transparency, as evidenced by our assessments from EcoVadis, a widely recognized third-party provider of sustainability metrics and analyses. EcoVadis evaluates non-financial issues such as ethics, sustainable procurement, environmental effects, and human rights, providing holistic ratings of company sustainability practices. In 2023, our facilities received Platinum and Gold ratings — the two highest awarded by EcoVadis — placing Dematic in the top 5% of assessed companies. (You can learn more...

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