sustainability report 2023
Schneeketten Beteiligungs Aktiengesellschaft
Kettenwerk 1
A-9371 Brückl
Klagenfurt District Court, FN 268808 g
Klagenfurt Tax Authority
Tax ID number: 089/5979
report
foreword
Ladies and Gentlemen!
Its a great pleasure to present our second business report in a row for the Schneeketten Beteiligungs AG, comprising next to the financial reporting also the ESG report for 2023!
Being a forefront leading player in the global snow chain, traction and forestry business, we put not only a high value on financial performance and returns, but environmental, social and governance ethics are regarded as an integral way-of-working of our group!
Are we effected by the global economic downturn? Yes, also we felt the increasing rougher environment. Due to the enormous inflations rates, the salaries and wages went up unprecedently. The recession has reduced the demand for our products, mainly due to the ever lasting deteriorating new vehicle registrations. And a somewhat warmer winter in Europe could not completely be compensated by a strong winter in parts of North-America. Nevertheless, our high quality products, the excellent world-wide near-tomarket network of service, distribution and manufacturing sites gives us the competitive edge.
All in all, a year where we could still remain or improve our global market position and made progress in achieving our 2030 goal to be a CO2 neutral production group.
Are we satisfied with what we have achieved? Yes and no. We are more then happy that our employees have supported us in achieving the utmost in a difficult environment and happy that our stakeholders and business partners are trusting us in our journey. But, we are not there where we want to be. We are committed to further strengthen our business position with new product
solutions and in new geographical areas. And committed in making significant steps in reaching the CO2 neutral goal! With our skills, competences, innovative thinking and acting and our financial strength, we look bright into the future.
On behalf of the management, I would like to thank our employees for their passionate performance and enthusiasm. This is the basis of our reliability and high level of service. I thank our customers and business partners for their trust and loyalty.
The Management Board
Rob Bekkers Chairman of the Board
foreword
Ladies and Gentlemen!
Schneeketten Beteiligungs Aktiengesellschaft, a member of the pewag group, is pleased to present its second sustainability report.
It portrays another eventful year in the exciting sustainability journey as well as highlights some of the ESG milestones accomplished in year 2023.
The main goal remains: CO2 neutral production by 2030. We are proud to report that the carefully selected and implemented decarbonization measures are already generating promising results. In 2023, a total of 1 432 tons of CO2 emissions (scope 1 and 2) were avoided in Schneeketten Beteiligungs Aktiengesellschaft and its subsidiaries, which corresponds to 58 % of total CO2 emissions (scope 1 and 2). Starting from the avoidance of 1 188 tons of CO2 emissions in year 2022, this is an encouraging trend (21 % increase).
This is attributable not least to the ever-increasing investments into own photovoltaic systems and a hydropower plant. As a result, self-generated renewable energy more than doubled from 1 270 MWh in 2022 to 2 635 MWh in 2023. Adding to that the rising decarbonization of our vehicle fleet, which almost doubled from 4 % to 7 %, as well as the newly planned carbon reduction measures, CO2 neutral production by 2030 is proving to be an achievable goal.
This would not have been possible without the inspiring entrepreneurial vision of the founder of the pewag group, admirable leadership of the board and the management team as well as the outstanding performance of the team members.
In fact, a special acknowledgement extends to every team member of Schneeketten Beteiligungs Aktiengesellschaft, as they are the driving force behind our sustainability journey. Their strong work ethic and dedication to
innovate in the challenging ESG-landscape have earned Schneeketten Beteiligungs Aktiengesellschaft as well as the entire pewag group several wonderful international recognitions: from ESG Innovation Leader Award for the successful launch of the groundbreaking ESG reporting system to Silver EcoVadis Medal awarded to our König S.p.A.
The aim of this report is to faithfully document the ESG performance of the Schneeketten Beteiligungs Aktiengesellschaft as well as its subsidiaries – not only our most remarkable achievements, but also our challenges and how we are addressing them. Equally strong is the desire for this second sustainability report to inspire further projects that significantly contribute to the sustainable development of Schneeketten Beteiligungs Aktiengesellschaft as well as its valued partners.
Anja Vrtacnik Head of ESG
introduction
1.1. About the pewag group
We are the pewag group
Schneeketten Beteiligungs Aktiengesellschaft is part of the pewag group.
The pewag group is an internationally operating group of companies with subsidiaries on all five continents and customers in over 100 countries. With headquarters in Austria, pewag group is not only a leading manufacturer of high-quality traction and industrial chains as well as lifting solutions, but also offers customized services in the area of mechanical engineering, metal forming and forging.
The success story of pewag group goes back to the year 1479.
striving for excellence in QUALITY
The values of the pewag group brands are demonstrated by our first-class quality and continuous innovation. You can rely on us.
striving for excellence in RESPONSIBILITY
Our goal is CO2 neutral production by 2030. We live sustainable and fair partnerships and an open way of working together. We take on social as well as environmental responsibility.
What drives us
Through our entrepreneurial spirit – shaped by the joy of innovation – we strive to offer the best solutions for the market. Today and in the future. The high quality of our brands, products and services as well as the passionate commitment of our employees are our most valuable assets to exceed customer expectations and to live up to our corporate responsibility towards people and environment.
Our values
For the pewag group, the connection between entrepreneurial actions and ethical principles is a tradition and a significant factor in long-term success. We strive for excellence with an emphasis on quality, responsibility, entrepreneurship and technology.
striving for excellence in TECHNOLOGY
We ensure our technological strength by striving for quality, continuous improvement and innovation of our products and production processes.
striving for excellence in ENTREPRENEURSHIP
Through the specific expertise of each individual and decentralized responsibilities, we ensure healthy growth and a sustainably successful future.
First documentary mention of the forge in Brückl
the chain forge in Kapfenberg
Graz
1.2. About ESG at pewag group (policies and strategy)
We take responsibility for ESG
Schneeketten Beteiligungs Aktiengesellschaft strives to live up to its corporate responsibility towards people and the environment. This overarching mission drives all our members to develop solutions that make our product portfolio, our own business activities and our value chain more sustainable.
To identify the material topics, we regularly hold discussions with the internal and external stakeholders. Based on these, we set our targets, create our action plans and prioritize our projects.
Our last double materiality analysis, in which both the financial as well as ESG-related impacts on and by Schneeketten Beteiligungs Aktiengesellschaft were assessed, was conducted in year 2022. In it, in particular the Sustainable Development Goals (SDGs) were taken into account and the following ESG areas of influence have proven to be most impactful:
> Environment (E): decarbonization with energy efficiency and green energy, responsible procurement and use of all natural and manmade resources, transition to circular economy.
> Social (S): occupational health and safety of our employees as well as providing safe and quality products and services to our customers, creating general good working conditions and promoting human rights along the entire value chain.
> Governance (G): compliance and strong business ethics, ensuring cybersecurity, data protection and whistleblower protection, forging responsible and resilient partnerships.
Strategic steps
To ensure that the ESG principles are firmly integrated in all our business activities and processes, we take the following action steps.
> We are certified: Many production sites are certified according to ISO 9001 “Quality management systems”, ISO 14001 “Environmental management systems” and ISO 50001 “Energy management systems”. The
principles of ISO 45001 “Occupational health and safety management systems” have been successfully implemented at many sites. Our pewag academy has been distinguished according to ISO 29993 “Learning services for non-formal education and training”. In addition, some of pewag group subsidiaries are proud members of LEEA (Lifting Equipment Engineers Association) and certified accordingly. In this way, we are equipped to regularly measure our performance and progress.
> We support international sustainability initiatives and incorporate their principles into our business processes: We uphold universal human rights. In addition, we align our business activities with the SDGs as well as with the environmental targets of the Paris Agreement and the European Climate Law.
> We contribute: Schneeketten Beteiligungs Aktiengesellschaft invests a significant part of its profits in its own sustainability projects. Some of the passionate efforts and contributions from year 2023 are highlighted in the dedicated chapters of this report.
Action Steps
> We communicate about our sustainability journey: Our commitments and minimum ESG requirements are defined in our Code of Conduct. Our performance and progress are published in our annual sustainability report. We raise awareness and share our experiences in the We are certified
online courses of the pewag academy. We value honest feedback, thus all concerns, internal and external, can be expressed via our confidential grievance mechanism.
Management team
Our mangement team on the group level consits of one managerial member for each division. And each of our subsidiaries are led by one or two experienced managing directors.
We are aware of the challenges of diversity in the manufacturing industry and take measures to create an integrative working environment in which everyone has the same opportunities to develop professional and personal excellence.
Sustainability management is one of the important roles of the management team. Our long-term sustainability goals and strategies are set by the management team on a group level and promoted on all levels of the overall organization. All significant sustainability-related matters are discussed in a balanced top-down and bottom-up approach, also including internal and external sustainability experts.
Supervisory board
The supervisory board on the group level consists of five members (currently one female and four male) with varied professional backgrounds,
expertise and from diverse age groups.
The supervisory board meets quarterly to discuss not only strategic business matters, but also topics related to sustainability, in particular with regard to planned investments.
Some of the subsidiaries also have a supervisory board. Depending on the legal framework, the employees are also represented in these.
Stakeholders
The laws and regulations of the countries in which our subsidiaries are located form a minimum standard.
We also strive to take internal and external interest groups into consideration, such as employees, because they deserve a healthy, safe and inclusive work environment in which they can fully develop their expertise; investors, because they support us in transforming our entrepreneurial vision into reality; customers and end users, because they inspire us to continuously develop new and innovative solutions for their ventures; suppliers, because they contribute their valuable expertise and are happily to join us in our sustainability journey; local communities, because we are passionate about creating a lasting positive impact on people and the environment through our products and services as well as through our partnerships.
1.3. About ESG milestones in 2023
Year 2023 was marked by several ESG milestones as Schneeketten Beteiligungs Aktiengesellschaft as well as entire pewag group continued their sustainability journey.
The year started with celebrating the results of the months long business case study led by United Nation`s Global Compact Austria regarding the implementation of SDGs in the manufacturing industry. The pewag group was one of the companies selected to participate and contribute first-hand experience.
At the same time, the new ESG reporting system was launched across the entire pewag group,
The first official sustainability report highlighted our sustainability journey to date and inspired further projects.
making it possible to publish the first official sustainability report in June 2023. This fortified our sustainability mission and inspired further projects. Some of them are highlighted in the dedicated chapters of this report.
In September 2023, the SDG Flag Day was commemorated at the pewag group headquarters in Austria as it was our turn to host a regular quarterly gathering of local businesses. Despite coming from different industry sectors, a shared commitment to sustainable development has ensured a valuable exchange of best practices.
Throughout the year, we had the honor of presenting our sustainability journey at several international business conferences in Austria, Germany, Italy and Slovenia. Likewise, we welcomed the valuable opportunities to learn from our peers and sustainability professionals.
SDG Guide for the Manufacturing Industry: The pewag group participated in the study led by UN Global Compact Austria and Pro Sustainability.
SDG Flag Day: A valuable exchange of the sustainable business practices with Metalpine, Frutura, Pro Sustainability, Kastner&Öhler, Magna Steyr and others.
The pewag group celebrates the remarkable sustainability achievements of its valued members.
Congratulations to Dr. Hubert Schemitsch and his inspiring team at the oldest production site in Brückl, Austria. They received the pewag group 2023 Management Award for Sustainability thanks to their remarkable performance in advancing self-generated renewable energy through the implementation of their own photovoltaic plants and a hydro power plant. Their commitment to sustainability sets a commendable standard for our entire organization.
Congratulations to Mr. Andrea Barbonaglia and his excellent team in Suello, Italy, who were the first
in the pewag group to be independently assessed by a third party on their sustainability performance. In this comprehensive and evidence-based assessment, our Italian team was recognized as top 15 % of all assessed companies and awarded the EcoVadis Silver medal. They are now part of over 75 000 organizations worldwide that have undergone this sustainability assessment to date.
Last but not least, we express our gratitude to our peers in the DACH region for distinguishing the pewag group with the ESG Innovation Leader Award for the successful implementation and launch of the groundbreaking ESG reporting system.
“Through renewables, we pave a sustainable path to our long-term success, while ensuring a legacy for future generations.”
Dr. Schemitsch, pewag Schneeketten GmbH
“We welcome the Silver EcoVadis medal as confirmation that our passionate ESG efforts are going in the right direction.”
Mr. Barbonaglia, König S.p.A.
A wonderful highlight of the Lead the Change conference in Munich, Germany: The pewag group was awarded the ESG Innovation Leader Award.
1.4. About this ESG report
Purpose and structure of the report
Sustainability reporting offers the opportunity to inform the stakeholders and the public about commitments, performance and progress in the area of sustainability.
Even though the preparation and publication of a sustainability report is not yet mandatory for Schneeketten Beteiligungs Aktiengesellschaft and its subsidiaries, we want to transparently communicate our sustainability-related activities and impacts.
This is the second official sustainability report. It is structured pursuant to ESG principles. Each chapter is devoted to one of the ESG aspects. At the beginning of each chapter, the material topics with respective goals and action plans are presented, followed by selected key performance indicators and concluded with our success stories in which our sustainability projects are highlighted.
Reporting frameworks
This report takes into consideration the following reporting frameworks: CSRD (Directive (EU)) 2022/2464 as regards corporate sustainability reporting), ESRS (European Sustainability Reporting Standards) and GHG Protocol (Greenhouse Gas Protocol).
The key performance indicators (KPIs) are collected pursuant to the uniform definitions of the ESRS and are converted into standardized units to enable data comparison from the various countries and also for future years. The data are based on reliable and documented sources. Where estimates are used, this is expressly noted.
The following methods are used for data collection and preparation of the report to ensure the data quality: individual and collective data collection, including manual and digital processing of primary and secondary sources, followed by manual and digital data processing using also specific ESG-reporting software and finally validation of the collected data by means of comparison with control data and by individual interviews.
Selected KPIs, although potentially material, are not yet included in the report, but will be added and phased-in over the coming two years to assure the data quality.
Third-party audit
The selected KPIs will be audited by a third-party auditor in the separate Independent Limited Assurance Report.
The scope of the audit will be gradually extended over the coming two years.
Scope of validity
The data published here refers to the reporting year 2023, which corresponds to the calendar year 2023.
This sustainability report applies to the Schneeketten Beteiligungs Aktiengesellschaft and its subsidiaries listed below, consolidated in accordance with the consolidated financial statements.
Such consolidated sustainability reporting follows the consolidation principles and methods set out in the consolidated financial statements. However, it is important to note that each new subsidiary being fully incorporated into Schneeketten Beteiligungs Aktiengesellschaft by December 31 of the reporting year, submits its sustainability KPIs for the entire reporting year and as of 100 % (principle of full integration based on the effective controlling interest), regardless of the month and the degree of incorporation. While this may distort the ESG performance in the short term in the first reporting year, it allows for a more transparent and meaningful data comparison in the long term.
Schneeketten Beteiligungs Aktiengesellschaft and subsidiaries as per December 31, 2023:
> König Czech s.r.o.
> Koenig Schneeketten GmbH
> König S.A.S.
> König IP AB
> König S.p.A.
> KWB Kettenindustrie GmbH
> pewag Canada Inc.
> pewag Forestry UK Ltd.
> pewag italia s.r.l.
> pewag Nordic Oy
> pewag Norway AS
> pewag Schneeketten Deutschland GmbH
> pewag Schneeketten GmbH
> pewag sweden AB
> pewag Traction Chain Inc.
> Řetězárna Česká Třebová s.r.o.
> Wallingford’s Inc.
environment we take responsibility.
2.1. Environmental disclosures
Schneeketten Beteiligungs Aktiengesellschaft strives to conserve natural resources as well as to reduce the overall environmental footprint of production, goods and services throughout their life cycle.
As an important attribute, many companies are certified according to ISO 14001 (“Environmental management systems”) and ISO 50001 (“Energy management systems”).
Climate change
Schneeketten Beteiligungs Aktiengesellschaft is aligned with the Paris Agreement and the EU Climate Law. Our goal is CO2 neutral production by 2030, with our transition plan being disclosed in chapter 2.2. Both, energy consumption as well as CO2 emissions are regularly monitored.
The overall energy consumption of Schneeketten Beteiligungs Aktiengesellschaft and its subsidiaries in the reporting year 2023 amounted to 18 768 MWh. Thereof 37 % were sourced from renewable energies. Thus, the original EU target to meet at least 32 % of its energy needs from renewable sources by 2030 has already been successfully exceeded, while the revised EU target of 42.5 % is within reach.
Important contribution to decarbonization is made by self-generated renewable energy, which more than doubled from 1 270 MWh in 2022 to 2 635 MWh in 2023 thanks to own photovoltaic systems and a hydro power plant.
Pollution
We comply with all local environmental regulations and strives to continuously improve its performance.
In some of the manufacturing processes, such as galvanizing, the use or generation of some pollutants and substances of concern is currently inevitable. There, we set ourselves the goal of continuously reducing such impacts and we actively investigate suitable substitutes to maintain product and environmental stewardship.
Water and marine resources
Schneeketten Beteiligungs Aktiengesellschaft handles water resources with great care, even though no water is being consumed in high water stress areas.
At our production sites in Austria and Czech Republic, water from different sources, including rainwater, is used in production processes for cooling purposes. This occurs in a closed loop
system, thus ensuring the water is neither wasted nor contaminated. Furthermore, stream water is used for the generation of renewable energy in our hydroelectric plants in Austria. These have been carefully designed and constructed to ensure that the marine life remains intact.
The water consumption greatly depends on the production volume, thus water intake and discharge are regularly monitored and the quality of discharged water is regularly tested. In the reporting year 2023, no significant changes in water consumption were detected in comparison to the previous year.
Biodiversity and ecosystems
Double materiality analysis, in which both the financial as well as ESG-related impacts on and by a company are assessed, showed no significant impacts regarding biodiversity and ecosystems.
Nevertheless, Schneeketten Beteiligungs Aktiengesellschaft is committed to preservation of green areas at its own locations. In 2023, an infrastructure of 243 287 m2 was maintained, thereof 58 % representing natural and near-natural areas.
Resource use and circular economy
The pewag group dedicates itself to careful handling of resources and integrates the principles of the circular economy into its business model, focusing primarily on longevity, reusability, repairability and recycling.
It is therefore self-evident to use natural resources and raw materials as sparingly as possible while at the same time maintaining the quality of our products. We are continually working on not only optimizing the load capacity, weight and durability of our products, but also on extending their life cycles, e.g. through the provision of spare parts and repairs, as well as improving recycling options.
We promote closed loop systems by supporting the use of sustainable, renewable natural resources, while reducing waste and increasing reuse and recycling.
In year 2023, within Schneeketten Beteiligungs Aktiengesellschaft and its subsidiaries, a total of 1 321 tons of waste was generated and disposed of, thereof 72 % was recycled, 5 % hazardous, and 23 % not recycled (non-hazardous). Hazardous waste was reduced by 57 % compared to the previous reporting year.
2.2. CO2 goal and roadmap
Schneeketten Beteiligungs Aktiengesellschaft has set itself an ambitious goal in alignment with the Paris Agreement as well as European Climate Law: to achieve CO2 neutral production by 2030.
What does this mean?
We are determined to significantly reduce our CO2 emissions by year 2030, ultimately aiming for CO2 neutral production.
We are targeting specifically the Scope 1 and 2 emissions of the most relevant greenhouse gases, otherwise known as CO2 equivalent.
All companies are committed to this goal, whereby the companies newly incorporated into Schneeketten Beteiligungs Aktiengesellschaft are granted a 5-year phase-in period.
How will we achieve this?
As a first step, we have analyzed the targeted CO2 emissions and identified our CO2 hotspots as presented in the infographic.
Scope 1 represents the direct emissions from our own sources such as transport with company vehicles and gas purchased. This also includes self-produced energy for our own use, which comes completely from renewable sources (photovoltaics, hydro power plants and biomass power plant) and which is already CO2 neutral.
Scope 2 represents the indirect emissions from purchased energy (e.g. electricity, heat and cooling).
Derived from the results, we have developed a roadmap for Schneeketten Beteiligungs Aktiengesellschaft,
setting forth actions and measures for achieving our goal.
Our main focus is the reduction of the CO2 emissions, targeting specifically the Scope 1 and 2 emissions.
Our key reduction measures are energy efficiency, including the optimization of our production processes (e.g. heat treatment) to reduce energy
consumption, and transitioning to green energy sources either with implementing self-generated renewable energy (photovoltaic plants, hydro power plants, biomass power plant) or with purchased renewable energy. We are also focusing on optimization of our own logistics and transport (E-mobility). Finally, even smaller steps such as installing LED lighting contribute to decarbonization, especially in offices and warehouses.
In the year 2022, these reduction measures already led Schneeketten Beteiligungs Aktiengesellschaft and its subsidiaries to avoid 1 188 tons of CO2 emissions, thereby reducing the Scope 1 and 2 emissions by 48 %.
In the year 2023, further 1 432 tons of CO2 emissions were successfully avoided. Thereby, reduction of 58 % of our Scope 1 and 2 emissions was achieved. This is another significant step towards our goal, while already fulfilling the EU target to reduce 55 % of CO2 emissions by 2030.
Further decarbonization measures will be examined in the coming years to achieve the aimed CO2 neutral production, such as possibilities of CO2 removals and participating in the EU emissions trading system.
Our decarbonization measures are largely aligned with the EU Fit for 55 initiative. This EU’s plan for a
green transition proposes a coherent and balanced framework for reaching the EU’s climate objectives in a way, which on one hand ensures a just and socially fair transition, while on the other hand strengthens innovation and competitiveness of EU industry and last of all also underpins the EU’s position as leading the way in the global fight against climate change. Some of the decarbonization measures include: setting ambitious renewable energy targets (42.5 % renewable energy share by 2030), ensuring energy efficiency, shifting from fossil gas to renewable and low-carbon gases, reducing emissions from transport.
What about Scope 3 emissions?
Scope 3 emissions represent the indirect emissions from activities in the value chain.
These are not addressed with our main goal of CO2 neutral production. Nevertheless, we want to fully understand their impacts. Thus, we have already examined the subcategories of Scope 3 emissions significant to our value chain and set out systems to monitor them.
It has been shown that categories such as raw materials purchased, upstream and downstream transport might be the most impactful. Some of these impacts are already being successfully mitigated through our measures towards circular economy.
2.3. Environmental KPIs
Environmental KPIs of Schneeketten Beteiligungs Aktiengesellschaft
and subsidiaries in reporting year 2023
Environmental KPIs of Schneeketten Beteiligungs Aktiengesellschaft
and subsidiaries in reporting year 2023
Remarks:
1. When considering total CO2eq emissions from the value chain it should be noted that the scope 3 was newly introduced in the reporting year 2023 and was not available in the reporting year 2022, thus the comparison is currently not yet meaningful.
2.4. Environmental highlights of 2023: Decarbonization
Back in 2021, the goal to achieve CO2 neutral production by 2030 was defined and significant steps were set into motion with our first photovoltaic plants on-site.
Now, Schneeketten Beteiligungs Aktiengesellschaft operates several of its own photovoltaic systems and plants. Further photovoltaic systems are planned to be installed in the coming years.
Along with a hydroelectric plant, more than 2 635 MWh of renewable energy was self-generated in year 2023 across entire Scheeketten Beteiligungs Aktiengesellschaft. This can supply about 877 households with their annual energy needs.
Thanks to self-generated renewable energy and further decarbonization measures, such as transitioning to e-mobility and purchasing green energy, Scheeketten Beteiligungs Aktiengesellschaft successfully avoided more than 1 432 tons of CO2 in year 2023. This equals to 42 960 newly planted trees and represents an important step towards achieving CO2 neutral production by 2030.
Similar efforts are also being made at other pewag group locations, not belonging to Schneeketten Beteiligungs Aktiengesellschaft.
been in operation since 2021 and have been expanded in 2022.
May 2023.
Photovoltaic plants at our location in Brückl, Austria, have
Photovoltaic plants at our location in Vamberk, Czech repubic have been in operation since
Photovoltaic plant at our location in Les Marches, France has been in operation since March 2024.
Photovoltaic plant at our location in Suello, Italy, has been in operation since June 2019.
Photovoltaic plant at our location in Graz, Austria has been in operation since June 2023.
Photovoltaic plant at our location in Unna, Germany has been in operation since 2018.
Decarbonisation of our vehicle fleet: the kilometers driven with electric vehicles have almost doubled compared to year 2022.
Photovoltaic plant at other pewag group location in Laktasi, Bosnia and Herzegovina has been in operation since 2022.
New hydropower plant at our location in Brückl, Austria has been in operation since 2023.
Photovoltaic plant at other pewag group location in Middelburg, Netherlands has been in operation since October 2023.
Photovoltaic plant at other pewag group location in BielskaBiałej, Poland has been in operation since July 2023.
Photovoltaic plant at other pewag group location in Klagenfurt, Austria has been in operation since March 2023.
Photovoltaic plant at other pewag group location in Kapfenberg, Austria has been in operation since 2021.
Photovoltaic plant at other pewag group location in Plymouth, Great Britain has been in operation since 2021.
Biomass thermal power plant at other pewag group location in Kapfenberg, Austria has been in operation since 2022.
Hydropower plant at other pewag group location in Kapfenberg, Austria has been in operation since 1940.
Photovoltaic plant at other pewag group location in Porto Alegre, Brasil has been in operation since 2021.
According to Eurostat, buildings account for 40 % of final energy consumption in the EU and 36 % of its energy-related greenhouse gas emissions. It is therefore no surprise, that energy efficiency – not only in the productions processes, but also regarding our buildings – is one of the focuses of our decarbonization strategy.
A great example is the pewag group’s pewag polska Sp.z.o.o. which has relocated their premises to Poland’s first low-carbon economic zone in year 2023. The zone is in the vicinity of key transport arteries for the region and is geared towards environmental protection. The 71-hectare
area is divided into plots equipped with a rainwater and sanitary drainage, a water supply network, retention reservoirs and an underground firefighting reservoir. A significant part of the energy comes from renewable sources.
One of the coveted plots has become a new home of the pewag group, with the new building featuring its own photovoltaic plant for generation of green electricity, heating pumps for production of renewable heat as well as recouperation systems, thus ensuring green energy as well as maximum energy efficiency.
social we take responsibility.
3.1. Social disclosures
Schneeketten Beteiligungs Aktiengesellschaft respects, upholds and promotes the internationally proclaimed human rights, both at the workplace and in our own area of influence, such as along our value chain and in the local communities.
As an important attribute, many companies have implemented the principles of ISO 45001 (“Occupational health and safety management systems”).
Own workforce
We recognize that the contribution of our employees is our greatest asset. Our dedication to provide good working conditions and secure employment at all locations around the world is one of the foundations of our business model.
This is reflected in our Code of Conduct with a range of commitments, such as ensuring health and safety, encouraging work-life balance, providing flexible working time and adequate wages, alignment with the collective agreements in the EEA region as well as enabling social dialogue and freedom of association. Our performance is monitored by the KPIs displayed in chapter 3.2.
from personal protective equipment, machine safety, fire protection through to handling chemicals. All companies of Schneeketten Beteiligungs Aktiengesellschaft conduct various projects for accident prevention and raising awareness. Even despite this effort, all workplace accidents cannot be completely avoided.
The accident rate according to the OSHA rate increased from 2.3 in 2022 to 3.2 in 2023 but is still remaining firmly within the industry average of 3 to 5. OSHA rate indicates the number of recordable work-related accidents per 200 000 hours worked, which equals to 100 full-time employees, over a 1 year period.
As of the reporting date December 31, 2023, Schneeketten Beteiligungs Aktiengesellschaft and its subsidiaries employed 420 persons (headcount) worldwide, thereof 42 % female and 58 % male. Though the number of employees decreased from the previous reporting year, the gender distribution itself remained the same, strongly indicating a culture of equal treatment and opportunity.
Despite the increased fluctuation rate from 13 % in 2022 to 16 % in 2023, other observed KPIs confirm the culture of secure employment. On one hand, the percentage of permanent employment contracts increased from 88 % in year 2022 to 91 % in year 2023, with equal distribution amongst male and female employees. On the other hand, the percentage of full-time employees remained unchanged at high 95 %, with the others choosing part-time employment for family reasons, making 10 % of all females and 2 % of all males.
Together with 41 additional external employees (“non-employees”), the total number of employees at the end of 2023 was 461 persons (headcount).
The occupational health and safety of our employees are a fundamental principle for Schneeketten Beteiligungs Aktiengesellschaft:
In order to continuously improve the occupational health and safety, additional measures were introduced in reporting year 2023, one of them being the implementation of ISO 45001 principles (Occupational health and safety management systems).
The focus is also on encouraging the personal and professional development. Our employees around the world are empowered with a variety of educational content and training through the pewag academy, our ISO 29993-certified online learning platform. Apart from that, also external training is facilitated. Respective KPIs will be introduced over the coming two years.
Last but not least, Schneeketten Beteiligungs Aktiengesellschaft nurtures a culture of open, honest, non-discriminatory and team-oriented exchange based on transparent communication. Diversity is welcomed and underpinned by equal treatment and equal opportunities for all, including gender equality and equal pay for work of equal value, equal access to training and skills development, inclusion of persons with disability and enacting measures against violence and harassment in the workplace.
Workers in the value chain
To ensure a sustainable, responsible and resilient value chain, Schneeketten Beteiligungs Aktiengesellschaft carefully selects its suppliers and partners. In particular compliance with the ESG minimum requirements is an essential criterion for cooperation.
Therefore, the standard of working conditions enjoyed by our employees is encouraged along our value chain. This is supported by a separate Code of Conduct for Suppliers and by making our confidential whistleblower channel accessible to externals. Further measures are being examined.
3.2. Social
KPIs
Affected communities, consumers and end-users
Taking responsibility for ESG means that also the interests of other stakeholder groups, such as affected communities, consumers and end-users are considered in the process of developing our sustainability strategy.
Various communication channels are in place to facilitate a valuable multi-faceted and transparent exchange, including making the confidential whistleblower channel accessible to external stakeholders.
Social KPIs of Schneeketten Beteiligungs Aktiengesellschaft
and subsidiaries per December 31st
Social KPIs of Schneeketten Beteiligungs Aktiengesellschaft
and subsidiaries per December 31st
Non-employees
Social KPIs of Schneeketten Beteiligungs Aktiengesellschaft
and subsidiaries per year average
Social KPIs of Schneeketten Beteiligungs Aktiengesellschaft
and subsidiaries in reporting year 2023
3.3. Social highlights of 2023: People of the pewag group
What has allowed Schneeketten Beteiligungs Aktiengesellschaft and the entire pewag group thrive in the manufacturing industry through the centuries are the passionate people of the pewag group. Their occupational health and safety have always been a top priority and were significantly strengthened by implementing the principles of ISO 45001 at the group level in year 2023, thus creating a working environment where innovation can flourish.
Empowered with knowledge that pewag academy brings anytime, anywhere, the employees have many possibilities to develop their professional skills as well as product know-how. In year 2023, several original learning opportunities as well as the live webinars were provided through the online platform of pewag academy – not only for the employees, but also for valued customers and other esteemed partners.
To inspire future generations of engineers, technicians and other valuable experts to join the manufacturing industry, the colleagues from various professional backgrounds are happy to partner with local high schools as well as universities.
This same passion led the excellent team at pewag Traction Chain Inc. in Pueblo, USA to transform a local Goodnight Elementary School with fresh paint, creating a vibrant and inspiring learning environment for future generations.
We partner with schools and universities to inspire future generations of engineers, technicians and other valuable experts.
Occupational health and safety are a top priority and are reinforced by the principles of ISO 45001.
Webinars: get firsthand information from our experts and ask questions – live!
pewag academy brings learning opportunities to employees, customers and partners anytime, anywhere. ISO 29993-certified.
Giving back to the local communities.
“The
„Champions are not consistently great, but they are great at being consistant.“
Rene Vallant, Sports director of pewag racing team
May is the month for
Year after year,
Ironman
is
One of the ways in which Schneeketten Beteiligungs Aktiengesellschaft gives back to local communities is by supporting the local organizations and initiatives in the field of health promotion and sport. It is therefore no surprise, that our employees are also known for their sporting spirit. Participating in various sporting events has become a treasured tradition not only for employees but also for their family members.
A great example is the Bike2Work challenge. Goal: use a bike to commute to work. In May 2023, the enthusiastic team of pewag s.r.o. in Vamberk, Czech Republic proved that biking, walking or running to work is not only healthier and more environmentally friendly but also greatly strengthens team spirit. Their efforts were supported by the company, which provided an encouraging working environment, such as ample bicycle parking spaces in a roof-covered and secured bicycle shed with bicycle repair tools available, as well as showers and changing rooms at the workplace. Apart from successfully completing the challenge and avoiding more than 835 kg CO2 emissions due to 6 473 km of sustainable commute, they are now also proud recipients of the EU certificate for their excellent performance and are determined to continue this wonderful tradition and inspire others to do the same.
Looking for a more hardcore challenge?
Meet Ironman Austria, the triathlon where the employees from the entire world join forces with the professional athletes from the pewag racing team. In year 2023, several three-person teams from the pewag group completed the Company Triathlon division, while the pewag racing team’s Lotte Wilms proved to be a champion in the main Ironman race being the fastest woman to overcome a 3.8 km swim, a 180 km biking and a 42.2 km run.
big goals keep you motivated, while the smaller steps get you to the finish line!“
Lotte Wilms, Ironman Austria Champion 2023
Business run in Unna, Germany has become a tradition not only for our colleagues, but also for their family members.
the Bike2Work challenge.
the Czech colleagues take the lead and inspire others to follow.
competition
an exciting challenge for the professional athletes from pewag racing team as well as for our colleagues.
governance we take responsibility.
4.1. Governance disclosures
Schneeketten Beteiligungs Aktiengesellschaft strives to live up to the corporate responsibility towards people and the environment. Thus, the performance is systematically tracked with selected KPIs not only concerning the environmental and social aspects, but also regarding business conduct. The overarching targets and corresponding actions plans are being developed.
The double materiality analysis from 2022 confirmed the material topics regarding business conduct, as follows.
Business ethics
Schneeketten Beteiligungs Aktiengesellschaft complies not only with the applicable regulations, international standards and industry-specific guidelines, but also holds itself to the highest standards of integrity.
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Internally, this is ensured at all locations worldwide through compliance management, training our employees and implementing our own Code of Conduct. The latter reflects the commitment of each of our team members to co-create an ethical corporate culture with zero tolerance for corruption, bribery, anti-competitive or other unlawful behavior, and where respect for human rights and environment is enhanced by transparency, effective cybersecurity and data protection on one hand as well as protection of whistleblowers on the other.
Externally, this corporate culture of responsibility towards people and the environment is actively encouraged along the entire value chain with the
help of a separate Code of Conduct for suppliers.
Apart from that, business activities are regularly and carefully monitored through embedded internal control systems as well as with selected annual third-party assessments. Breaches are taken seriously and can ultimately lead to termination of employment or business partnerships.
Any concerns regarding business ethics, human rights, the environment as well as other compliance matters can be submitted either directly to the designated contact person or via a confidential grievance mechanism, which is freely accessible to internal and external persons: compliance@ pewag-group.com. The investigations are carried out internally by independent and skilled officers bound by confidentiality. Preventative and safety measures for whistleblower protection are duly enacted according to applicable EU and national legislation.
In reporting year 2023, no confirmed incidents of corruption, anti-competitive behavior, data protection violations or the like were reported or discovered.
Responsible supply chain
Schneeketten Beteiligungs Aktiengesellschaft has proven to be a long-term partner for customers and suppliers. To ensure a sustainable, responsible and resilient value chain, we choose suppliers and partners with great care. Thus, compliance with ESG minimum requirements and local regulations is an essential criterion for cooperation.
4.2. Governance KPIs
Governance KPIs of Schneeketten Beteiligungs
and subsidiaries in reporting year 2023
Business conduct
Total number of confirmed incidents of corruption and bribery
Description of the nature of these incidents
Number of convictions
Amount of fines from convictions
Public legal cases against the company and own workforce
Confirmed incidents in which iwn workforce was dismissed or disciplined
Confirmed incidents relating to business partners, that were terminated or not renewed
Average time in which the company pays an invoice to a supplier (in days)
Standard paying terms by categories of suppliers Category 1 - netting (30 days)
Aktiengesellschaft
Whistleblowing
Number of investigations and proceedings initiated as a result of such reports
of justified reports
Description of the type of committed violations
of processed retaliation incidents
Description of the type of retaliation
4.3. Governance highlights of 2023: Strong ethics
Through the centuries, ever since 1479, Schneeketten Beteiligungs Aktiengesellschaft and the pewag group have been forging its own “Leading to excellence” business model. The backbone of it are surely strong ethics, with each team member taking the responsibility and putting the ethical principles from our Code of Conduct into business action, thus contributing to the longterm success.
Schneeketten Beteiligungs Aktiengesellschaft celebrates the colleagues from the other members of the pewag group: Load Monitoring Systems Ltd, established in 2016 and a valued member of the pewag group since 2020. Based in Aberdeen, United Kingdom, this intelligent lifting equipment specialist has been honored with the King’s Award for Enterprise in year 2023, with the company
being recognized for excellence in international trade.
This award programme, now in its 57th year, is United Kingdom´s most prestigious business accolade, with successful businesses able to use the esteemed King’s Awards Emblem for the next five years.
Congratulations to Mr. Kirk Anderson and his excellent team for this well-deserved recognition of their passionate dedication to excellence.
“We are extremely proud. This King’s Award helps us look to the future with a greater confidence and strong optimism.”
Mr. Anderson, Load Monitoring Systems Ltd
“It is a great honour to receive the King’s Award and is all the more special, being the first of its kind:”
Mr. Kennedy, Load Monitoring Systems Ltd
outlook
5.1. Acknowledgements
What was once an inspired idea from the founder of the pewag group, Mr. Ägyd Pengg, has now become a well-established business practice and a shared goal among all pewag group members, including Schneeketten Beteiligungs Aktiengesellschaft: CO2 neutral production by 2030.
Our first sustainability report for the year 2022 has provided an overview of our sustainability performance to date and has held us accountable, while this second sustainability report for the year 2023 presents our sustainability journey from a more dynamic perspective. Some encouraging trends can be recognized, such as more than doubling the self-generated energy compared
to the previous year as well as increasing the avoided emissions by 21 % compared to the previous year, and they motivate us to continue with determination.
This is only possible because all team members have generously embraced this goal as their own and integrated the planned measures into daily business activities.
Thanks to our dedicated team members as well as our valued partners along the entire value chain, the Schneeketten Beteiligungs Aktiengesellschaft and its subsidiaries will continue to improve, innovate, share the best practices and learn how to skillfully navigate the many risks and opportunities in this ever-changing ESG landscape.
5.2. Independent assurance report
Report about the independent assurance of the non-financial reporting 2023
We have performed an independent audit on the Sustainability report 2023 of Schneeketten Beteiligungs Aktiengesellschaft, Brückl (hereinafter “the company”), in accordance with the CSRD (Corporate Sustainability Reporting Directive).
Responsibility of the legal representative
The orderly preparation of the Sustainability report 2023 in accordance with the CSRD (Corporate Sustainability Reporting Directive) is the responsibility of the legal representative of the company. We have obtained a declaration of completeness signed by the legal representative for our files.
Auditor’s responsibility
Our responsibility is, based on our audit procedures and the evidence we have obtained, to express a conclusion as to whether any matters have come to our attention that cause us to believe that the Sustainability report 2023 has not been presented in all material respects in accordance with the CSRD (Corporate Sustainability Reporting Directive).
We conducted our audit in accordance with the International Federation of Accountants’ ISAE 3000 (Revised) standard. Under these standards we are required to comply with our professional duties, including independence requirements, and to plan and perform the assurance assignment in a manner that allows us to express our conclusion with limited assurance, taking into account the principle of materiality. In accordance with the “ General Terms and Conditions of Engagement for Tax Advisors and Auditors ”, our liability is limited. Accordingly, the person entitled to exercise the profession is only liable for intentional and grossly negligent breaches of the obligations assumed. In the event of gross negligence, the maximum liability towards the client and any third parties amounts to a total of EUR 726,730.
Our audit procedures were designed to provide limited assurance as a basis for our conclusion. The scope of the audit procedures performed to obtain audit evidence is less than that required to obtain reasonable assurance (such as for an audit of financial statements) and therefore a lower level of assurance is provided. The selection of audit procedures is at the auditor’s discretion and included the following activities in particular:
> Obtaining an overall understanding of the company’s activities and its organizational and operational structure;
> Conducting interviews with company personnel to understand relevant systems, processes and internal controls related to the audited report content that support the collection of information for reporting;
> Reviewing relevant documents to assess both awareness and priority of topics in nonfinancial reporting and to understand how the development of processes and controls has been implemented;
> Survey risk management and governance processes in relation to sustainability and critically evaluate the presentation in nonfinancial reporting;
> Performing analytical audit procedures at company level;
> Conducting site visits at the Klagenfurt site to obtain evidence on key performance indicators. In addition, we performed sample testing of individual disclosures in the sustainability reporting at site level with regard to completeness, reliability, accuracy and timeliness;
> A sample review of data and processes to determine whether they have been appropriately adopted, consolidated and reported at the overall organizational level. This included assessing whether data was reported in an accurate, reliable and complete manner;
> Evaluation of the company’s internal materiality analysis;
The scope of our assignment was neither an audit nor a review of historical financial information. We only examined the presentation of the reported information in accordance with the CSRD (Corporate Sustainability Reporting Directive). Similarly, neither the detection and investigation of criminal offenses, such as embezzlement or other acts of breach of trust and regulatory violations, nor the assessment of the effectiveness and efficiency of the management were the subject of our assignment. Furthermore, figures taken from external studies, forward-looking statements and prior-year figures were not the subject of our assignment. The references cited in the report were audited.
We conclude that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit conclusion. We issue this report on the basis of the assignment entered into with you, which is also subject to the “General Terms and Conditions of Engagement for Tax Advisors and Auditors” with effect vis-à-vis third parties.
Summary conclusion
Based on our audit procedures and the evidence we have obtained nothing has come to our attention that causes us to believe that the Sustainability report 2023 is not presented in all material respects in accordance with the CSRD (Corporate Sustainability Reporting Directive).
Klagenfurt am Wörthersee, August 6, 2024
RK&P
Wirtschaftsprüfung und Steuerberatung GmbH
Auditors
The publication or disclosure of the assurance report on the non-financial reporting may only occur in the version certified by us. This assurance report relates exclusively to the German language of the complete non-financial sustainability report. For deviating versions, the provisions of § 281 par. 2 of the Austrian Corporate Code (UGB) must be observed.
