Sustainability and responsibility

2022 report
Contents
Introduction Facts, figures & dates

03 A message from the Management Board 21 About this report 38 Sustainable and ethical procurement

04 Our sustainability and ESG successes 22 Sustainability as part of corporate 40 Site certifications
responsibility
05 Klüber Lubrication at a glance 41 Our training enables our employees
24 SDGs – focus on the biosphere, society to work sustainably with a focus on
and economy customers
Magazine 26 Our materiality matrix provides 42 Respecting diversity and promoting
guidance for our ESG activities inclusion are cornerstones of our
corporate culture
07 On the path to sustainability: faster, 29  nergy: efficient consumption and
E
higher, further – including in climate conversion to renewables demonstrate 43 Compliance is based on integrity and
protection responsibility ethics and strengthens our reputation

09 Sustainability: thinking one step further 31 CO2eq emissions and climate neutrality –
the key challenge of this decade:
10  reater efficiency for better climate
G Scope 1 and 2 45 GRI-Index
protection
33 An even greater challenge: working 48 Legal notice
11 Digital solutions boost sustainability together to reduce Scope 3 emissions
for users in the supply chain

12 Always in sight – our handprint with 35 Water and waste – important elements
customers of optimal resource use

17 Protecting biodiversity is a top priority 36 Safety and protection for our

employees, temporary workers and
19 EcoVadis Gold – recognition and third parties
motivation for us
Introduction

A message from the Management Board

Dear readers,
We are pleased to present you with our seventh sustainability We are proud of the external awards we have received for
report. Over the past year, we have continued to make signifi- our systematic activities – particularly the second gold medal
cant progress towards meeting our long-term goal: to steadily from EcoVadis, a leading provider of business sustainability
improve our ecological footprint and handprint and thus play ratings.
our part in reducing environmental impact.
Our customers, employees, suppliers and other stakeholders
An important tool for this – which was expanded again in are increasingly interested in our sustainability and corporate
2022 to achieve targets – is our handprint, i.e. the contribu- social responsibility achievements. We have therefore expan-
tion we make to the sustainability goals of our customers. ded this report for the first time and transformed it into an
This shows that our business model – which has always been environmental, social and governance (ESG) report. It now
aimed at helping our customers reduce energy, wear and contains more information on social and ethical corporate
waste – goes hand in hand with global sustainability targets. governance matters as well. We are also reporting based on
the new rules of the Global Reporting Initiative (GRI).
We also made strong progress at our own sites on six conti-
nents in 2022. Hence, our target of reducing our own CO2eq We are delighted that you are interested in our path towards
emissions by 75 % by 2025 was achieved and exceeded last a more sustainable and humane future, and we hope you find
year, far ahead of schedule. We have decided to offset the this report inspiring.
remainder through relevant projects. Thus, the figures show
that Klüber Lubrication has been climate neutral for Scope We thank all of our employees for their enthusiastic and tire-
1 and 2 emissions at our sites since 2022. With the active less support in improving our sustainability indicators.
support of our suppliers and customers, we are working on
achieving Scope 1, 2 and 3 climate neutrality by 2045. We
have adopted an appropriate strategy and have already
specified the first key sub-targets.

Claus Langgartner Markus Murmann Dr. Martin Schmidt-Amelunxen

Speaker of the Managing Board, Executive Vice President Executive Vice President Technology/R&D
Executive Vice President Sales/Marketing Finance/Administration

3
Introduction

Our sustainability and ESG1 successes

EcoVadis Gold Absolute CO2eq Scope 1 and 2 Scope 3

rating reduction –76 % CO2 GHGP2 climate calculated with
neutrality achieved specialised
in 2022 external
Klüber Lubrication ranks consultant
among the top 4 % of 100,000
companies assessed worldwide Compared to 2019 for Scope 1 and 2. Achieved through CO2eq reduction Climate intensity of Scope 1, 2, 3 calcu-
EcoVadis carbon management level The target of –75 % by 2025 was and offsetting projects for currently lated and improved by 11 % per tonne of
“Advanced” achieved ahead of schedule in 2022 unavoidable residual emissions product since 2019

Sustainability Ethical Expectations Sustainability

strategy 2045 procurement 2.0 of our suppliers Product Portfolio
developed introduced regarding climate Segmentation:
neutrality
communicated

Better than target of 35 % for the

Including Scope 1–3 climate neutrality First risk assessment completed Specific targets worldwide defined second time, with 39 % outperformers

Energy savings Target of 5 Diversity: 25.9 % Compliance

in 2022 for cus- training days women in KL Management
tomers through per employee management System
KlüberEnergy exceeded positions
projects:

438 GWh, equivalent to 67,000 tonnes of

CO2eq; 2025 target: 350 GWh achieved in The number of training days averaged
2021; new target for 2025: 800 GWh 5.43 per person 2025 target: 25 %, exceeded again Structural plan further developed

1
ESG: environmental, social and governance.; 2 Greenhouse Gas Protocol

4
Introduction

Klüber Lubrication at a glance

General performance indicators and sustainability indicators
General performance indicators 2021 2022 Trend
Sales (€ million) 841 983
Employees 2,457 2,524
Temporary workers 100 91

Sustainability indicators 2021 2022 Trend

Energy-related CO2 emissions per tonne of product
Scope 2: indirect energy 54 51
Scope 1: direct energy 57 64
Total CO2eq Scope 1 and 2 111 115
Absolute CO2eq emissions
Scope 2: indirect energy 4,723 4,287
Scope 1: direct energy 4,785 5,493
Scope 1: solvents 15,528 1,937
Total CO2eq Scope 1 and 2 25,036 11,717
Scope 3 743,844 698,299
Gesamt-CO2eq Scope 1–3 768,879 710,017
Specific CO2 emissions: tonnes of CO2eq 9.4 9.0
Scope 1–3 per tonne of product

Total waste generated per tonne of product [kg/t] 56.8 66.8

Total water consumption per tonne of product [m /t]
3
0.82 0.76
Work accidents per 1 million workhours (WRIFR) 1.64 2.5
Training days per Klüber Lubrication employee 4.05 5.43

5
Magazine
On the path to sustainability: faster, higher,
further – including in climate protection

Sustainability: thinking one step further

Greater efficiency for better climate protection

Digital solutions boost sustainability for users

Always in sight – our handprint with customers

Protecting biodiversity is a top priority

EcoVadis Gold – recognition and motivation

for us
Magazine

On the path to sustainability: faster, higher,

further – including in climate protection

Our objective of becoming climate neutral shows that cor- Where is Klüber Lubrication currently with its “faster,
porate success and responsible action can go hand in hand. higher, further” plan?
Quickly achieving climate neutrality and continuing to build Markus Hermann: Much to our surprise, we achieved this
on our contribution to a greener tomorrow through specialty target in 2022! Our teams around the world have suc-
lubricants for our customers are the core aspects of Klüber ceeded in lowering our CO2eq emissions by an incredible
Lubrication’s long-term climate protection strategy. It is going 76.1 % in just three years – from 49,000 to 11,700 tonnes
to take more than one isolated approach to achieve our goals. CO2eq per year. My sincere thanks go to everyone around
That is why we are pursuing a multifaceted strategy, as the world for their persistence, focus on solutions and
Markus Hermann, Sustainability Manager, explains. innovative power! We have now increased our new target
to -90 % by 2030.
Klüber Lubrication is a chemical company.
Is that not a disadvantage to start with when it How have you achieved that?
comes to such ambitious CO2 emissions targets? Markus Hermann: Well, it all began with a major negative
Markus Hermann: Not at all. It is true that we are part of shock. At the end of 2019 we discovered that a solvent used
the problem, and we are working on minimising our impact – for cleaning had huge greenhouse gas potential, and this had
our footprint. But Klüber is also part of the solution because caused our carbon footprint to triple. We have reported on
we can make a real difference through our products. Their this extensively in previous reports. It really motivated us to
main purpose is to minimise friction as much as possible. act. Most of the improvement was achieved by us working at
Markus Hermann, Sustainability Manager, Klüber Lubrication
This, in turn, saves energy and reduces CO2 emissions for record speed to find and test alternative solvents to quickly
our customers and their products. That is our handprint, replace the old one. Basically, we took a technological leap
which is far bigger than our footprint. We have aligned our forward.
strategy with the requirements of science and credibility: to
act faster, focus on higher targets and continually broaden Have you also been able to make progress with regard And what about oil and gas?
our field of action. In short: faster, higher and further – inclu- to energy? Markus Hermann: After switching to green electricity, the
ding in climate protection. Markus Hermann: Yes, on a global scale! We are working next big challenge is to shift the other 50 % of our energy
on increasing energy efficiency through energy audits and by consumption away from gas and oil to non-fossil energy
What exactly does this path look like? exchanging information on successful measures. Our pro- sources. That includes heating for our buildings and our
Markus Hermann: For our sites worldwide, we have defined a duction facilities have contributed enormously to our success required process heat as well. We are working on our first
four-stage plan which we take further forward every year based regarding green energy through generation of their own solar pilot projects in this regard. Our aim is to achieve 75 % green
on the successes we have achieved: increase energy efficien- power and conversion to green electricity from dedicated energy by 2030. We have a fair chance!
cy, switch to green energy, use new technologies and offset plants, where possible. By 2021, we had already exceeded
the remainder. To make our contribution to this pivotal decade our 2025 target of 50 % green electricity, and today we are
for climate protection, we have set an ambitious target for the at 76 %. We have therefore increased this target to 100 % by
2020s: reduce CO2eq by 75 % by 2025, compared with 2019. 2030.

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Magazine | On the path to sustainability: faster, higher, further – including in climate protection

“Our business model is part It was therefore an important milestone of our sustainability What positive effects do innovative products
of the solution on the path to commitment that, in the Sustainability Board in December have for the customer?
2021, we pledged to pursue climate neutrality by 2045 for Markus Hermann: Specialty lubricants are the greener alter-
global climate neutrality.” Scope 3 emissions as well, in line with the German govern- native for our customers. They reduce the friction and wear
ment’s climate target. That marked the start of Klüber’s con- of components, extend their service life and increase their
version – away from fossil fuels and towards non-fossil energy energy efficiency in use. Our digital solutions and services,
What is the situation with offsetting? sources and raw materials. To achieve all this, we need the like the EfficiencyManager, also play a role here. All this helps
Are you already pursuing that? active support of our customers and suppliers around the to conserve valuable resources and reduce waste and CO2
Markus Hermann: After it became clear that we would world. emissions – by a factor several times that of our own emis-
achieve a significant reduction in CO2eq at our sites, Klüber sions and the footprint of our products. Our business model
Lubrication also committed itself to offsetting our sites’ annual What do you mean by the active support of suppliers? is therefore part of the solution on the way to global climate
residual emissions (Scope 1 and 2) from 2022. Together with Markus Hermann: We expect our suppliers to play an active neutrality.
experts from our parent company Freudenberg, we have part in achieving the UN’s sustainability goals, reducing their
selected and purchased offset projects based on the criteria emissions and also providing us with relevant data, e.g. on What is your motto for Klüber Lubrication’s
of the Foundation Development and Climate Alliance, which the CO2eq footprint of their products. However, it is equally contribution to sustainability?
we have joined. With these projects, we have taken care to important that they develop innovative products for and with Markus Hermann: Ultimately, we can only achieve a signifi-
ensure that other targets of the UN SDGs are also achieved, us in order to make lubricants more sustainable – and expand cant reduction in CO2 emissions together. That’s why we want
such as education, local jobs and the protection of biodiver- their positive effects for our customers. Using our Sustainabi- to encourage all of our suppliers, partners and customers to
sity. We will not achieve absolute climate neutrality from the lity Scorecard, we manage the development of new products work together on the path to greater sustainability. We need
corresponding CO2 certificates, but we will achieve at least and the refinement of our existing product portfolio – going ambitious targets and quick successes, and we must conti-
a calculated climate neutrality. We don’t want to engage in far beyond climate protection! nually expand our areas of action. Protecting our biodiversity
greenwashing – we want to make real contributions! and water reserves is just as much part of sustainability
And how can customers actively contribute to the nowadays as social factors and good corporate governance.
Is this as far as the CO2 neutrality strategy can go? achievement of climate targets? That’s why our new motto is “faster, higher, further – for
Markus Hermann: No. A credible strategy also needs to Markus Hermann: Well, they need to be prepared to test climate protection and sustainability”.
consider Scope 3 sources under the Greenhouse Gas Proto- innovations and incorporate them into their production and
col. Here, the entire product life cycle needs to be examined, products and also share any likely additional costs – at first
from the extraction of raw materials through to their proces- at least. And do so quickly. Luckily, many of our customers
sing, transportation and ultimately their disposal, or preferably also have similar climate neutrality targets and are calling for “Faster, higher, further –
recycling. Other requirements for the provision of our services our contribution. What is astonishing is that many of them are for climate protection and
must also be accounted for and reduced, such as business not aware what great support lubricants can provide for their
trips, employee commutes and service processes. Many of production and products.
sustainability.”
us have direct leverage over minimising business flights and
particularly air freight! With around 700,000 tonnes of CO2eq,
Scope 3 emissions are a huge chunk.

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Magazine

Sustainability: thinking one step further

Thanks to new solvents in production, Klüber Lubrication Other ingredients, same effect 3 % of the original GHG emissions”, says the Product Portfolio
has been able to significantly reduce its Scope 1 CO2eq Manager proudly.
emissions in recent years. The solvent-based share was still Solvents ensure that lubricants are optimally distributed in
over 32,500 tonnes in 2019 but fell to 1,937 in 2022. This Klüber products. Before the solvent evaporates, even hard- “This result is incredible! By replacing the old solvent in our
was also a major factor in enabling us to achieve our 2025 to-reach areas are wetted with a thin film and are thus ef- special lubricants, we were able to help our customers save
target of a 75 % reduction in CO2 emissions ahead of sche- fectively protected with lubricants. Solvents also reduce the a total of over 47,000 tonnes of CO2 equivalent. That almost
dule in 2022, i.e. within just three years (see diagram). “How quantity of lubricants that is actually used. “Each of our pro- corresponds to Klüber Lubrication’s total CO2 emissions
did we manage that? Through the close cooperation of ducts was tested by developers in a separate raw material (Scope 1 and 2) in 2019. We’re therefore making a significant
Research and Development, Production and other depart- exchange project. Here, it was important to clarify whether contribution towards protecting our environment”, she states.
ments. By working together, a new substance was found the performance of the product stayed the same,” explains
in 2020 which not only delivers the required performance Gabriele Wirtensohn. Among other things, the wetting beha- Such innovations are made possible thanks primarily to the
but also cleans more efficiently and protects our climate”, viour had to be identical, with comparable evaporation of commitment of our employees, with 200 working in just the
says Markus Hermann, Sustainability Manager at Klüber the solvent guaranteed. “We achieved this, and the change Research and Development department alone.
Lubrication. A kilogram of the solvent originally used in our also enabled us to reduce the global warming potential to
production had a global warming potential of around 10,000
kilograms of CO2eq. With the new solvent, this impact was
reduced to 58 kilograms of CO2eq.
CO2eq emissions, basis of report and 2025 target
Klüber Lubrication has now switched almost completely to 48,953
the new solvent for cleaning in the production process and 50,000
is even going a step further. “We didn’t just want to reduce 32,524 –25 % – 49 % – 76 % –75 %
our own carbon footprint, we also wanted to help our cus- 40,000
36,688
tomers achieve sustainability targets faster”, says Gabriele
Wirtensohn, Product Portfolio Manager. “For this reason, 30,000 26,390
[t ]

25,036
we investigated solvent alternatives for use in products too
and examined whether they were suitable for customers’ 20,000 15,528
requirements.” 11,717 12,238
10,000 16,429 16,429 1,937
10,298
9,508 9,780
0
2019 old 2019 new1 2020 2021 2022 target 2025
2025 target
CO2eq solvent
CO2eq energy

1
Solvent emissions icluded.

9
Magazine

Greater efficiency for better climate protection

Companies worldwide are increasingly having to Frequent energy savings of up to 8 %

meet higher regulatory requirements in terms of
sustainability and climate protection. In addition, they Usually, however, suitable products for specialised use
are frequently also setting themselves the goals of are already available. Use of these lubricants significantly
preserving the environment and reducing their own extends the replacement intervals, which in turn reduces
carbon footprint. To achieve this, they are increasing- annual waste disposal volumes. To clearly demonstrate the
ly monitoring their own CO2 emissions and, equally, savings to our customers, we provide evidence which has
they expect suppliers to play their part in improving been accurately measured and is in line with international
the sustainability of the entire supply chain. At Klüber standards. This means our customers have a solid basis for
Lubrication, we have already responded to these new investment decisions and can introduce the improvement
requirements. measure as part of their ISO 50001 certification.

With our EnergyEfficiency service, we help customers The savings generated and documented with the Klüber
significantly boost the efficiency of existing machines, the- Energy service amounted to approx. 438 GWh in 2022,
reby saving energy, CO2 emissions and related costs. For equivalent to 67,000 tonnes of CO2. This is more than the
example, in several customer projects we have been able to maximum emitted at our locations in one year – 49,000 Lubrication’s specialty lubricants enables electricity sa-
show that the energy output of a wind turbine can increase tonnes in 2019. It is also more than eight times our own glo- vings of up to 8 %. Other benefits are longer replacement
by more than 2 % if Klüber Lubrication’s lubricants are used bal energy consumption of 50 GWh. We thus achieved our intervals and less wear to the machines. “‘Never change a
in gearboxes. Maintenance intervals are longer, and friction self-imposed target for 2025 much earlier than expected – in running system’ is a popular saying, but anyone who wants
and noise are reduced. In addition, less lubricant is needed, 2021. We have set ourselves a new target for 2025: savings to consistently incorporate sustainability and environmental
which means operating costs are reduced and the efficiency of 800,000 MWh. This exclusively includes energy savings protection into their production units nowadays needs to
of materials and resources is increased. that we make possible as part of KlüberEnergy service pro- ensure all potential is utilised. We can objectively prove what
jects and are able to prove based on the measuring method savings are possible by changing lubricants and therefore
To leverage the full potential of a system, KlüberEnergy used. help to reduce our customers’ carbon footprint and protect
analyses and logs the starting situation so that an accurate the environment. The switch usually pays off within four to
comparison can be made later on. Based on this analysis, The wind energy industry is not the only industry that can six months,” says Iraja Ribeiro, Global Senior Advisor, Energy
our experts select a suitable specialty lubricant from the make substantial savings and improve energy efficiency by Efficiency and Sustainability.
product range. If necessary, an optimised lubricant is deve- using Klüber Lubrication lubricants. Be it the food industry,
loped by Klüber Lubrication’s R&D department. roller presses in cement works or drinks manufacturers: the
KlüberEnergy analysis helps customers make significant
savings regarding the energy consumption of machines.
In particular, reducing friction through targeted use of Klüber

10
Magazine

Digital solutions boost sustainability for users

Cost savings thanks to better energy efficiency and reduced Neither too much nor too little No travel required – experts on site
wear: these benefits of high-quality specialty lubricants have
always had a positive effect on environmental performance. With LuCA (Lubrication Condition Analysis) we have develo- Instant live support for customers from our global network
New digital solutions enable lubricants to be used even more ped a solution that enables the optimal time for a lubricant of tribology experts, service engineers and other technical
efficiently: the most suitable lubricant is used effectively in the change to be determined. This prevents increased wear and specialists – made possible by Remote Expert. The new,
right quantity in the correct place. unnecessary lubricant consumption. The oil and grease ana- innovative support service using visual inspection technology
lysis service in Klüber Lubrication’s laboratories provides in- and remote access to the plants thus prevents travel-related
Keeping a focus on all lubricants, planning maintenance in formation about composition, impurities and wear, as well as CO2 emissions. Not only that, but users also receive first-
good time and detecting wear early – digital solutions around oxidation and aging of the lubricants. Officially introduced in class, competent support without delays caused by travel
the lubrication point make maintenance processes mea- October 2022 and very quickly and enthusiastically received times. This optimises processes, reduces potential downtime
surably more efficient and enable a more economical and by our customers, LuCA creates the basis for highly efficient and thus also contributes to an efficient and sustainable use
sustainable use of resources. maintenance processes and effective predictive maintenance of resources.
according to the principles of risk management and Total
Productive Maintenance (TPM).
In focus: Total Productive Management
(TPM) and energy efficiency
Our customised digital solutions not only support users in
implementing TPM but also help them achieve their sustai-
nability targets. The lubrication points are given a QR code
and recorded in the EfficiencyManager1. They provide an
instant overview of the state of the components. The precise
information about the wear point acquired with this method
reduces the danger of incorrect lubrication as well as under/
over lubrication. Using additional measuring equipment, elec-
tricity consumption can also be measured and the potential
for saving energy determined. The new digital measures thus
contribute towards reducing costs and also boost sustainabi-
lity for users.

The EfficiencyManager is a professional web application for managing, documenting and

1

monitoring all lubrication processes in production.

11
Magazine

Always in sight – our handprint with customers

Sustainability Product Portfolio Integrated system for assessing and managing a sustainable portfolio
Segmentation (SPPS)
2011 … 2017 … 2019 … 2020 …
Sustainability is becoming an important issue for companies
across more and more industries. The issue is also becoming
Step 1 Step 2 Step 3 Step 4
more significant thanks to new laws and stricter limit values.
Sustainability Scorecard Annual sustainability Implementation of Quantification of
Klüber Lubrication is always keeping its eye on the increasing
for product development segmentation of global measures for a more Scorecard and life
sustainability demands and fast-paced, constantly changing
projects product portfolio sustainable portfolio cycle assessments
legal requirements.

Back in 2011, we introduced criteria for evaluating the sustain-

ability of product development projects (step 1). Typical classification
Outperformer Exchange of raw
materials of the product carbon
With the aim of significantly increasing the contribution of our footprint of a grease
upgrade
products to our sustainability targets and those of our custo-
New development
mers, we have been refining these criteria since 2017, based Performer

Initial value
on the recommendations of the World Business Council for
Sustainable Development (WBCSD), and carrying them over downgrade Certification
to our existing product portfolio.
Potentially
Challenged
Cancellation
The focus was on the clear evaluability and measurability of
the criteria with regard to the effect of our products on people
Raw materials
and the environment, as well as sustainable production and Challenged Push measures Packaging
resource conservation – in line with the UN SDGs.
Transportation
Production
Since then, we have been applying these criteria of our Sus-
tainability Product Portfolio Segmentation (SPPS) in our integ-
rated approach as a system for the existing product portfolio
and, equally, for product development. In this way, we were Essentially, all of our lubricants make a contribution to sustainability: they reduce friction and wear and ensure longer
able to create a quantified scorecard from the qualified score- operating times, less maintenance and so on. As a result, we classify all of our products initially as “Performer”. Pro-
card (step 4), which we are continuously developing further. ducts that also meet certain standards or offer our customers added value for sustainable use in line with the UN SDGs
As a result, multiple measures for sustainable product improve- are then upgraded to the “Outperformer” category. However, products that pose a potential danger to health or the
ments have already been implemented (step 3); these can be environment are downgraded to “Potentially Challenged” or “Challenged” and should be replaced accordingly.
tracked using our key figures. We are thus also supporting
the targets of the Responsible Care initiative, whose Charter
we recognise.

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Magazine | Always in sight – our handprint with customers

Share of sales of SPPS categories

100

90
25 % 25 % 29 %
80 40 % 39 %
70

60

50 49 % 48 %
[ %]

57 % 41 % 43 %
40

30

20 8%
7% 13 % 5% 5%
10
11 % 18 % 11 % 13 % 13 %
0
2018 2019 2020 2021 2022

We have set ourselves the goal of ensuring that we impact This integrated system lays the foundation for a comprehen-
Challenged the environment as little as possible with our products, sive analysis and representation of our impact on the ecosys-
Performer
facilities and all our activities, and we are making an active tem. It also provides solutions for reducing our carbon foot-
Target Potentially Challenged and Challenged
Potentially Challenged
contribution towards preserving biodiversity and ecosystems. print. The aim is to minimise our environmental impacts over
Outperformer To achieve this, we pursue the LCA (Life Cycle Assessment) the long term and protect our ecosystem and biodiversity.
Target Outperformer approach and are developing a methodology for determining
the carbon footprint of our products, which will then be inclu-
ded in our quantified scoring (step 4).

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Magazine | Always in sight – our handprint with customers

Using less or running longer saves resources

Less is more. Not just for lubricants, but also when it comes to replacing machine components. After all, ensuring reliable lubri-
cation while using less lubricant reduces raw material consumption, use of materials and waste, as well as procurement
and disposal costs, therefore improving your carbon footprint.

Another criterion for evaluating our lubricants is their capability to optimise the service life of a component, such as gearboxes
or rolling bearings. A good lubricant helps to prevent downtime caused by premature wear, ensuring that machines can run
efficiently until the end of their intended service life. This can significantly delay the need for replacement wear parts, helping to
reduce costs for maintenance and spare parts. This reduces the use of raw materials throughout a machine’s or component’s
running time, as well as the amount of lubricant waste after use.

Example:
Repairing a generator or changing rolling bearings in a wind
turbine are a particular challenge for service staff, not least due
to the extreme height involved. So, what if the components –
with a little extra care – ran longer and more efficiently again
and needed to be serviced less often? For example, treating
the generator bearings with a special cleaning lubricant could
remove residues which result in a stronger resistance in the
bearing, increased energy demand and higher operating tem-
peratures. When deposits have been removed after cleaning,
the component can then run several times longer with the right
operational lubricant. This not only saves money and resources,
but also proactively reduces risks in the workplace.

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Magazine | Always in sight – our handprint with customers

Sustainable, safe and efficient food production

That may sound like a diet plan, but these products protect both the health and the wellbeing of consumers and help our cus-
tomers achieve more sustainable production. Lubricants used in the food industry and in the provision of drinking water need to
be safe for end consumers. We help to ensure this by meeting NSF standards and drinking water regulations and by producing
our lubricants in line with ISO 214691. To avoid endangering human health, it is essential to minimise the risk of contamination
with MOSH/MOAH2 from lubricants. For this reason, we evaluate our formulas and also analyse our customers’ production and
maintenance processes. Protection is thus guaranteed for the user in production and for the end consumer.

Example:
Be it drinks, meat, baked goods or one of many other foodstuffs:
without refrigeration they all spoil, cannot reach consumers or
cannot be produced in the first place. That is why refrigeration
compressors are also a core element of food-production. They
therefore have special importance, which is also reflected in the
operating and energy costs (Total Cost of Ownership – TCO).
By switching from mineral oil-based compressor oils to fully
synthetic special oils for the food-processing industry, we have
frequently already been able to increase oil change intervals
fivefold and significantly reduce the operating temperature of the
compressors. This enables the service life of the component to
be increased and energy requirements to be reduced by more
than 7 % in many cases.

Costs can be recovered after just three months and the environ-
mental benefit is apparent immediately in the form of resource
conservation, as less material consumption for oil and machines
also means less waste. For example, a 7 % energy saving for
a typical production facility with 25 compressors equates to a
saving of 737.5 kWh and 562.5 t of CO2 per year. A change that
takes into account two important issues at the same time: food
safety and sustainability!

¹ ISO 21469 regulates the use of lubricants in the food, cosmetics, pharmaceutical and animal feeds industries.
2
MOSH/MOAH are hydrocarbon compounds. MOSH: Mineral Oil Saturated Hydrocarbons. MOAH: Mineral Oil Aromatic Hydrocarbons.

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Magazine | Always in sight – our handprint with customers

Naturally high performers

Essential criteria for the evaluation of our products are their effect on the environment and their compliance with corresponding
regulations. Our “Outperformer” products excel here. They are partially biodegradable and meet numerous environmental stan-
dards, including Ecolabel1, OSPAR2 and EAL3, for the protection of both land-dwelling and marine life.

In addition to the use of packaging made with a proportion of recycled materials, which saves resources, the renewable raw
materials used offer a further advantage: they absorb and retain carbon dioxide (CO2) during the growth stage. In doing so, they
improve the carbon footprint of the lubricants and thus that of the lubricant users and their finished products as well. That is
what makes these lubricants the perfect choice for anyone aiming for CO2-neutral production.

Example:
Bridges create connections and help overcome obstacles. But
sometimes they become obstacles themselves – for example,
where a large ship has to pass under a low bridge. Ideally, the
bridge should be able to temporarily make way for the ship. Even
if the bridge is small, large forces are involved in moving it, and
these can only be fully effective with the precise lubricant for the
task. In addition, because of the proximity to water, there is a
requirement for good corrosion protection coupled with good en-
vironmental compatibility. We have put a lot of effort into achieving
this and have had these products certified with the EU Ecolabel.

In addition to working so well in the open gears at the bridge,

these products can be used in many other applications in the
maritime sector – from tourism to ocean freight. Wherever the
challenge is great and any possible contact with the environment
requires a special level of protection, Ecolabel-certified high-
performance lubricants enable components to function without
friction and with minimised risk to bodies of water.

1
Goods carrying the EU Ecolabel meet strict environmental criteria.
2
OSPAR is an international convention for the protection of the North Sea and North-East Atlantic. It regulates what may be discharged or introduced into these waters.
3
EAL (Environmentally Acceptable Lubricants) are environmentally compatible lubricants as defined in the Vessel General Permit issued in the US.

16
Magazine

Protecting biodiversity is a
top priority
Healthy, biologically diverse ecosystems are not only worthy of
protection in themselves – they are also an integral prerequi-
site for the effective functioning of our society and economy.
They are responsible for many processes that secure the
foundations of our life, such as good air and water quality,
a regulated climate, food and much more. The preservation
of biodiversity is therefore a top priority, which is why we
have decided to adopt the SDG structure of the Stockholm
Resilience Centre. This means: the targets at the “society”
and “economy” levels can only be achieved sustainably when
the SDG biosphere targets have been sufficiently met (see
diagram).

We have set ourselves the goal of ensuring that we impact the

environment as little as possible with our products, facilities
and all our activities, and we are making an active contribution
towards preserving biodiversity. In 2022, we integrated pro-
ducts into our HSE1 risk standard and environmental impact
assessment with its tools in order to guarantee a holistic view
from both a location and a product perspective. This inte-
gration of our established systems lays the foundation for a
comprehensive analysis and representation of our impact on
our ecosystem and for solutions to reduce our biodiversity
footprint – to minimise our environmental impacts over the
long term and protect our ecosystems.

After taking a closer look at the impact we are having on bio-

diversity and where we can actively drive forward change, we
identified three areas of action:

1
HSE – Health, Safety and Environment.

17
Magazine | Protecting biodiversity is a top priority

Products However, products that pose a danger to health or the en- le maintenance preserves the natural biodiversity, creating a
vironment are identified using negative criteria, which we then place on our premises where food can be obtained by insects
Our lubricants can be used for many different purposes and try to remedy quickly and systematically. and, in turn, the bats – thus preserving the natural food chain.
are often used in places where they may come into contact
with the environment – and therefore may also have an impact
on biodiversity. But effective risk management and environ- Production facilities Projects
mental protection start much earlier and are more extensive.
In 2011, Klüber Lubrication therefore started using its RD Sus- Every year, our sites get involved in various local sustain-
tainability Scorecard, which helps product developers analyse It is our aim to understand our impact on the biodiversity at ability projects. This gives our employees the opportunity
and optimise the entire life cycle of a product. For example, our sites and in the surrounding environment so that we can to actively participate, pitch in and often learn more about
when choosing raw materials – which have a substantial influ- develop measures to minimise negative effects and promote the relevance of biodiversity. For example, through planting
ence on the performance of the lubricant – care is taken as far positive effects. For example, our site in New Hampshire (USA) local trees at various sites such as in Spain and Germany or
as possible to choose materials that have only a small impact is directly adjacent to an area that is inhabited by a particular supporting the protection of marshland near Munich with a
on people and the environment. Since 2017, the criteria for type of bat. To ensure that the local diversity and livelihood donation from the prize money of an environmental project.
these have been refined based on the recommendations of of the bat is not too severely affected, site management has Beehives belonging to local beekeepers can also be found
the World Business Council for Sustainable Development decided that the areas in which we are not obliged to monitor at many of our properties.
(WBCSD) and carried over to our existing product portfo- surface water quality for maintenance measures should be left
lio. It is these criteria of our Sustainability Product Portfolio to develop freely in harmony with nature. This extensive, gent-
Segmentation (SPPS) that we have been applying ever since
through our integrated approach for our existing product port-
folio and, equally, for product development.

Essentially, all of our lubricants make a contribution to sustaina-

bility: they reduce friction and wear and ensure longer operating Impact
times, less maintenance and so on. They generally make a analysis
positive handprint contribution and conserve resources.

We have also developed a range of additional positive criteria

to determine whether products stand out positively thanks
to outstanding sustainability characteristics, in line with the Action areas:
UN SDGs. For example, we have introduced biodegradable products
product lines which were developed primarily for application production facilities
fields in which leakage into the environment cannot be ent-
projects
irely ruled out, such as in the marine sector. These products
have certifications such as Ecolabel, OSPAR or EAL. Pro- Biodiversity Impact
ducts that are proven to reduce lubricant consumption and conservation reduction
thus generate smaller quantities of waste also minimise the
impact on the biosphere. We call these products “Outper-
formers” and identify and specifically promote them with our
SPPS system.

18
Magazine

EcoVadis Gold – recognition

and motivation for us

Klüber Lubrication has a long tradition of purposeful sustaina- EcoVadis is highly respected worldwide
bility management. In 1996, our headquarters had its environ-
mental management system certified under EMAS1, being The fact that Klüber was awarded the gold medal again in In September 2022, Markus Hermann and Ludovic Perrot,
the first company in Munich to do so. By participating in an 2023 with an even better result shows that the company is on head of the French subsidiary, gave an interview on BMF
EcoVadis assessment, Klüber took this commitment to a new the right track. Nevertheless, there is still a lot to do: “EcoVadis TV, France’s most-watched news channel, in which the
level. gives us extremely valuable feedback on where and how we main topics were saving energy with special lubricants and
can improve. The gold medal in 2022 strongly motivated our the EcoVadis gold medal.
“2022 was a particularly important year for our sustainability employees to support sustainability even more intensively,”
management,” explains Markus Hermann, Sustainability says Hermann. “The medal is recognition for our global sus-
Manager. “We received the gold medal for the first time, which tainability team and for the decades of work carried out by
put us among the top 6 % of over 90,000 companies asses- many people, which we are continuing to build on.”
sed by EcoVadis worldwide. For our organisation, this was an
important external confirmation which has given us confiden-
ce in ourselves – for example, in discussions with customers Sustainability is becoming increasingly impor-
about ways to achieve greater sustainability. Ultimately, we
are part of the solution with our special lubricants!”
tant for manufacturing companies in India and
South-east Asia. “Decision makers are placing
particular emphasis on ensuring that suppliers
meet high requirements. EcoVadis plays a key 67 72
The opportunity to participate in an interview Points
with EcoVadis as part of a joint webinar was role here because it has a very prestigious 63 Points
very rewarding for both sides. Participation was reputation.” Points
Akshay Rajeev, Head of Marketing Communications and Product
very high due to our customers’ strong commit- Management, Klüber Lubrication India. 2021 2022 2023
ment to sustainability, and we also gave different
companies the chance to understand why sus-
tainability is important and how we should deal Since being awarded its first gold medal in March 2022, Klüber
with it. We were able to show how important a has also received very positive feedback from customers. This
is primarily because EcoVadis is regarded as a global brand EcoVadis Gold is like getting your first car,
sustainability rating like EcoVadis is and what with a high degree of credibility. “Worldwide, our customers only much more environmentally friendly.
opportunities it offers for the planet, the are showing a strong interest in EcoVadis and our rating,” says It has enabled us to move further and faster
company and the supply chain. Hermann. “Our field staff in our over 30 subsidiaries are very
along the road to sustainability.
Patrick Pariente Pons, Sales Engineer at Klüber Lubrication Iberica. pleased about that too.”
Dr. Wallace Zhang, Head of Business Development at Klüber China.

¹ Eco Management and Audit Scheme.

19
Facts, figures & dates
About this report
Sustainability as part of corporate responsibility
SDGs – focus on the biosphere, society
and economy
Our materiality matrix provides guidance
for our ESG activities
Energy: efficient use and conversion
CO2eq emissions and climate neutrality
Working together to reduce Scope 3 emissions
in the supply chain
Water and waste
Safety and protection for employees
Sustainable and ethical procurement
Our training enables our employees to work
sustainably with a focus on customers.
Diversity and inclusion
Compliance is based on integrity and ethics
and strengthens our reputation
Facts, figures & dates

About this report

In recent years, our customers around the world have shown an We take the following into account: Our Scope 1, 2 and 3 GHG emissions were determined based
increasing interest in our achievements and solutions in the area – the 10 Principles of the UN Global Compact, on the GHG Protocol Corporate Standard for 2019–2022. Scope
of sustainability. We have therefore significantly expanded the – the UN Sustainable Development Goals (SDGs) 1 and 2 were determined and calculated based on consumption
scope of this seventh report. For the first time, we are not only – the requirements of our stakeholders as presented to us data of solvents and energy. Consumption data for the sales
reporting in detail on environmental issues, but also on social through ratings, among other things (e.g. EcoVadis, NQC sites was only updated for the two largest sites in 2022. At the
matters, good corporate governance and sustainable, ethical SAQ, Sedex, CDP) end of 2021, we had the correct understanding of the GHG
procurement. – the standards of the GRI 2022 Protocol, and the calculations were reviewed externally. We also
– the EU’s Corporate Sustainability Reporting Directive implemented recommendations in 2021. The correct understan-
This sustainability and ESG1 report was compiled with reference – the Greenhouse Gas Protocol ding of our Scope 3 calculation of 2019 was reviewed in 2022
to the standards of the Global Reporting Initative 2022 (GRI)2 – the “Environment and ESG” materiality matrix, based on the by the DFGE, a renowned consulting firm. Including in previously
and the Greenhouse Gas Protocol. Unless otherwise specified, double materiality principle (see there) estimated areas, the values for all relevant categories were also
in this document the activities of all Klüber Lubrication Group – recommendations from associations (e.g. UEIL, WBCSD) calculated for 2019, 2020 and 2021 according to a refined me-
companies in which it had a financial majority as of December thodology. We determined the underlying consumption data on
31, 2022, are reported3. The sections on economic, social and To improve the informative value and comparability of our key a worldwide level. A qualified estimate was made for any gaps.
governance matters have been compiled in line with the GRI figures over the years, the values, where appropriate, are based We made a projection for 2022 mainly based on our production
index. on production quantities and on hours worked by our emp- volume using the 2021 production quantity-related emission fac-
loyees. When interpreting key figures, it is important to note that tor. For business trips and upstream leased capital assets (such
The Klüber Lubrication Management Board is responsible for we extensively expanded the reporting basis in 2019 through as company cars) we used higher factors from 2019. Optimisa-
the content and issuing of this voluntary report. It was assisted new logistics centres in Germany and the USA and in 2020 tions for solvents were only partly taken into account in order to
by the Sustainability Manager and selected representatives of through the integration of Traxit with its plants in Germany, the ensure a conservative calculation.
the Innovation and Sustainability Board and the Sustainability USA and China. Historic comparability of the figures is therefore
Steering Team. This document is publicly available on our web- limited. For energy and CO2eq, we have ensured comparability Questions and suggestions on this report should be directed
site. as from our base year 2019. In purchasing, integration of Traxit in to our Sustainability Manager, Markus Hermann, at:
our systems is at an early stage, which is why the corresponding Sustainability_Responsibility@Klueber.com
The current year under review is 2022. We usually publish our figures are not included here.
key figures for a five-year period. We correct past key figures if
the total has changed by more than 10 %. An updated sustain- To ensure a clearer understanding of the key figures, please note
ability report is published annually. Rounding may result in dif- that, as a specialty lubricant manufacturer, Klüber Lubrication is
ferences in figures and percentages. The relevant report topics not active in mass markets, e.g. for motor oils, and rarely produ-
are decided upon in an iterative process by the Sustainability ces high-volume products. We frequently produce many small
Steering Team with input from the Management Board, the Sus- batches of highly specialised lubricants. Our portfolio has a high
tainability and Innovation Boards and the Responsibility Council. proportion of greases from energy-intensive production.

1
Environment, Social and Governance.
2
For the GRI, see also the GRI index with many references and our GRI use statement.
3
An overview of our global sites is available at: hhttps://www.klueber.com/global/en/company/locations Note: The minority holdings in Japan and South Korea are not included in our report.

21
Facts, figures & dates

Sustainability as part of
corporate responsibility

In the Freudenberg Group1 the broad term “sustainability” lines of „Chemie“, the sustainability initiative of the German
in the sense of ESG – environmental, social and governan- chemical industry association (VCI), and have committed
ns hip Com ce – has been incorporated under the term “responsibility”, ourselves to following both the German and the international
it ize pli
ec an which is very important to the family company, and structu- Responsible Care guidelines. In addition, Klüber Lubrication
at
ce red both methodically and organisationally (see illustration). is one of the founding members of the sustainability initiative
or
rp

At Klüber Lubrication, we have established a Responsibility in the German Association of the Lubricant Industry (VSI).
Co

Value for customers

Innovation and labour
Council in addition to our Sustainability Team. The Respon- We have also actively supported the Foundation Develop-
Leadership sibility Council is responsible for comprehensively structuring ment and Climate Alliance since 2022.
People and driving forward issues and presenting an overall picture
of our global activities to our customers, rating agencies and
Responsibility other stakeholders. Our Sustainability Manager, who leads
hts
HSE

Long-term both units, ensures there is close integration. We regard our

rig

orientation
accreditation from renowned sustainability ratings provider
an
um

H EcoVadis, who awarded us gold medals in 2022 and 2023,

Sust
as confirmation of the effectiveness of our long-term, sys-
ainabilit y tematic approach.
MIN
IMIZ INT
I N G O U R F O OT P R
The “Values and Principles” of our parent company, the
Ma Freudenberg Group, define corporate social responsibility,
ter ter
ials Wa as shown in the diagram (left), and provide the framework
Wa s ions
MA te E n er g y Emiss S for the design of our sustainability programme.
XIM ER
IZIN TO M
G HAN CUS
D PR I NT FOR OUR
Via Freudenberg, we participate in the UN Global Compact.
Its principles on human rights, labour standards, environ-
Freudenberg values and principles mental protection and anti-corruption are also embedded in
our “Values and Principles”. Compliance with regulatory and
Fields relating to sustainability ethical principles is the basis for our own code of conduct.
We carefully choose suppliers to ensure ethically sound pro-
Operative processes within the value-added chain curement management. We take a proactive and forward-
(e.g. relating to the UN Global Compact) looking approach to compliance with the important regu-
latory requirements for our industry, such as REACH2. As a
Operative processes not relating to value creation company in the chemical industry, we also follow the guide-
1
Klüber Lubrication is part of the Freudenberg Group and a member of its Freudenberg Chemical Specialities (FCS) Business Group.
2
One of several European chemical regulations. REACH stands for Registration, Evaluation, Authorisation and Restriction of Chemicals.

22
Facts, figures & dates | Sustainability as part of corporate responsibility

Organising sustainability No sustainability without responsibility Global social commitment

The guidelines, strategy and current goals to be achieved with Other areas of corporate responsibility – such as equality, We have a societal responsibility in all the countries in which
regard to sustainability, as well as the organisation for their anti-discrimination, working conditions, human rights and we operate. We sometimes set up social projects oursel-
implementation, are set out by the interdisciplinary Sustain- social commitment, as well as issues relating to ethics, labour ves, or we take part in initiatives led by our parent company,
ability Board, on which the Speaker of the Board, the Exec. law and chemical law, are all managed directly by the Ma- Freudenberg. For example, our employees support the social
V.P. Sales and Marketing and the Exec. V.P. Technology and nagement Board with the relevant departments and global programme e², which was launched by Freudenberg in 2015.
R&D are all represented. Support is provided by the Global management structure. Since 2021, assistance has been pro- e² stands for education and environment and the programme
Sustainability Steering Team, which offers expertise from vided here by the Responsibility Council led by the Sustainabi- promotes relevant projects wherever Freudenberg does
various specialist departments. Across regions, the footprint lity Manager who reports twice a year, and also on an ad-hoc business. A sub-category of the “We all take care” awards
and handprint coordinators bring together central and regional basis, to the Management Board – the Klüber Lubrication conducted across the Group by Freudenberg recognises
perspectives and implement our strategies locally. This ensu- Group’s highest controlling body. This ensures full considera- projects that demonstrate a high level of social responsibility
res that matters relating to central functions and matters from tion of all relevant targets under the UN Sustainability Goals in a particular way, e.g. through improving living conditions,
the various regions and sites around the globe are all heard (SDGs). We obtain valuable support and input on all of these workplace safety or environmental protection. Initiatives from
and considered. It also helps to establish an effective commu- topics through communication with the central functions and our employees have already received a number of awards.
nication structure which facilitates the dialogue and media- other subsidiaries of our parent company Freudenberg and
tion of the various contexts within the far-reaching subject of also through exchange with its respective companies and
sustainability. The Sustainability Steering Team reports to the functions. We are delighted that EcoVadis awarded us gold
Sustainability Board twice a year, proposes measures for fur- medals in 2022 and 2023 for our sustainability management
ther development of strategies and goals, and can call upon it activities. This means that Klüber Lubrication is in the top 4 %
at any time on urgent matters. of over 100,000 companies assessed worldwide.

Our sustainability organisation

Sustainability Board (Innovation Board) Responsibility Board

Sustainability Marketing Product Portfolio KlüberEnergy Sustainability GBT GIT Global Sales
Manager Communication Management Serivce Manager (Sales) (Sales) Support

Research and Global Operations

Global HSE
Strategic Linking via
Development Management Procurement Global HSE
Sustainability
Global Sustainability Steering Team Manager Responsibility Council Team

Handprint coordinators Footprint coordinators regions Human Resources, Strategic Regions and regional
Other
head office and regions and production plants Compliance Office purchasing companies

23
Facts, figures & dates

SDGs – focus on the biosphere,

society and economy

We are consistently committed to the UN Sustainable We are focusing on nine SDGs, which we have grouped to- Biosphere:
Development Goals (SDGs). Using the targets and indi- gether in the categories of biosphere, society and economy.
cators of the 17 SDGs, we have analysed which SDGs The illustration below from the Stockholm Resilience Centre
Klüber Lubrication can contribute to relevantly and directly is particularly useful for practical work and for understanding
along the value-added chain. the SDGs.

Protecting our biosphere is crucial for conserving resources

for future generations. We have therefore set ourselves the
goal of reducing the environmental impact of our chemical
products, facilities and all our activities and preserving biologi-
cal diversity. We are encouraging more wild, natural areas on
our company premises to create habitats for native plants and
animals. We also support afforestation projects located near
production plants, with native trees in Spain and Germany, for
example. Also, when selecting CO2 offset projects, e.g. the
Agrocortex South Amazon forest protection project in Brazil,
the protection of biodiversity is an important criterion for us.
Climate protection is a core component of our sustainability
management activities.

24
Facts, figures & dates | SDGs – focus on the biosphere, society and economy

Society: Economy:

Affordable, clean energy is essential for a well-functioning Our substantial contribution to SDGs 8, 9 and 12 consists of tackling huge sustainability challenges. Innovation and a
society. Klüber is playing its part here by promoting sus- promoting and demanding resource and energy efficiency pioneering spirit are core competencies that we are particu-
tain-able power generation. In 2018, we set ourselves the along the value-added chain and leveraging our innovative larly proud of and support accordingly.
ambitious target of increasing the proportion of electricity power to create new solutions. Beginning with the selection
we obtain from renewable sources to 50 % by 2025, and of raw materials and our purchasing decisions, we make a To create innovations, especially in the sustainability field
we underpinned this with a package of relevant measures. direct contribution towards reducing negative effects on the and, above all, implement them quickly, we maintain a
We significantly exceeded our target ahead of schedule environment and improving safety and health protection. constant dialogue with our customers and suppliers. In line
in 2021 with 73 %, increased it to 76 % in 2022 and have with our shared responsibility for ethical behaviour along the
upped it again to 100 % by 2030. In addition, we are aiming We follow this principle when designing and modernising entire supply chain, our suppliers are required to achieve
to increase the proportion of green, non-fossil energy in our our production facilities, and when developing and manu- comprehensive goals and provide evidence.
total energy consumption from 38 % currently to 50 % by facturing our products. Our production plants are certified in
2025. We are protecting the health of our employees through accordance with the relevant standards. Independent audits
extensive occupational safety initiatives. We avoid using sub- of environmental management and occupational health and
stances that are hazardous to health in our products – many safety are carried out at all locations. More and more of our
of which are even certified for use in food production. Some products are also winning awards for their environmental
of our products are also important components of medical compatibility. We have set ourselves the goal of minimising
equipment. Health and safety have a lot to do with our enter- the proportion of products with problematic sustainability
prise purpose and economic activity, however. features and increasing the high proportion of products with
positive sustainability features. Innovation, together with
stakeholders, along the entire value-added chain is key to

25
Facts, figures & dates

Our materiality matrix provides guidance

for our ESG activities
Since both the internal and external expectations and re- (internal) and for our stakeholders (external) and set out how with currently around 22,500 members – including more
quirements of Klüber are constantly changing, we regularly we specifically aimed to develop them further. By expan- than 12,000 companies from over 160 countries – who have
review the important issues we have identified and update ding our global environmental management system and pledged to do business in a value-driven, sustainable way.
them. We carried out the first formal materiality analysis on the internationally recognised certification of all our sites in We are guided by the UN SDGs – Sustainable Development
aspects relating to sustainability in 1996 with the introduction accordance with ISO 14001, we are regularly updating these Goals. In this context, the materiality matrix below was
of our environmental management system in accordance considerations. created and subsequently updated at regular intervals. In
with the EU’s Eco-Management and Audit Scheme (EMAS). addition to our footprint, it explicitly shows the handprint1
We were the first company in Munich to do so. In this ana- The Freudenberg Group became a signatory to the UN and important action areas.
lysis, we examined the topics relevant for us as a company Global Compact in January 2014. It is a voluntary agreement

FOOTPRINT HANDPRINT (Footprint of our customers)

Beschaffung
Procurement Produktion
Production Transport Anwendung
Application Ende Lebenszyklus
Life cycle end

Rohstoff-
Raw material Regulative
Regulative
Materials
Materialien Unbedenklichkeit
Innocuousness
Use of selection
auswahl conformity
Konformität
resources
and recycling
economy Abfall- Lebensdauer- Verwertung
Utilisation /
and
Waste
Abfall Reduction Lifetime lubrication
reduzierung schmierung recycling
Recycling
Environmental

Green Verbrauchs-
Energie
Energy Optimisation Reduzierter
Energy reduzierung
Climate Reduced energy
Energieverbrauch
change consumption and
und Emissions-
emission reduction
Lokale
Local Lokale
Local reduzierung
Emissions
Emission Minimisation
procurement
Beschaffung production
Produktion

Use of Verbrauchs-
Consumption
resources
and recycling Water
Wasser reduzierung
reduction// Biologisch abbaubare
Biodegradable Produkte
products
economy Water protection
Wasserschutz The diagram shows the potential benefits
to be gained with regard to both footprint
Social

Labour Health/ Protection of users and handprint. The vertical bar on the left
Wasser
Safety
Protection in the value-added chain
shows the fields of action or materialities.
1
By “handprint” we mean aspects with which we help our customers reduce the footprint of their sites and their products through our products and services.

26
Facts, figures & dates | Our materiality matrix provides guidance for our ESG activities

ESG standards are continuously evolving. These include double materiality, partial results have already been acquired ESG materiality matrix
the standard of the Global Reporting Initiative (GRI), which and a supplementary materiality matrix developed. This now
has been important to us for years, and the new European systematically represents our previous actions and helps us
Sustainability Reporting Standard (ESRS). These now call identify and optimise important action areas (see diagram). Energy
Climate
for the double materiality analysis regarding environmental, This matrix currently serves as a guide for us and is the change
Emissions

Environmental
social and corporate governance issues. In the double mate- basis for the information published in this report. Due to the (Scope 1, 2, 3)
riality analysis, companies report on how they are impacted detailed consideration of selected HSE topics identified as
by sustainability factors (outside-in) and how their activities essential, the original matrix is retained as a supplement to Materials
impact sustainability factors (inside-out). Since Klüber is the new matrix and continues to apply. Resource use
actively involved in the Freudenberg process to assess and recycling Waste
economy

Water

Health and safety

Work forces Diversity and equal

Social
(own and partly opportunities
from the value-
added chain)
Working conditions
(own and value-
added chain)

Management structure

Corporate governance
Management Risk management

Internal audit

Anticorruption
Business
conduct (ethics)
Competition law

27
Facts, figures & dates | Our materiality matrix provides guidance for our ESG activities

Stakeholder engagement

Klüber Lubrication

Suppliers and Freudenberg

Customers Employees Society
business partners (parent company)

The identified stakeholders are of particular interest to interaction at trade fairs and information events, for In our stakeholder engagement activities, we pursue the
Klüber because Klüber’s actions as a manufacturing example. When communicating with stakeholders and following aims:
company have an impact on them. At the same time, implementing the sustainability strategy, Klüber takes
however, these stakeholders also influence the actions of account of legal requirements such as the Supply Chain – continuous exchange of relevant information, e.g.
the company. For this reason, two-way communication is Act, global standards like the GRI and rating platforms on new regulations or internal rule changes and
very important so that all stakeholder groups are heard, like EcoVadis, NQC and Sedex. requirements
and their needs and expectations can be addressed. We – ensure transparency
communicate with stakeholders mainly via our external Vulnerable groups are taken into account within the – maintain dialogue and thus obtain stakeholder
publications such as the homepage or the sustainability stakeholder group suppliers, and in the field of our feedback and expectations
report, via internal reports, surveys and via face-to-face employees. – identify new trends and associated opportunities
and risks
– adapt, renew and further develop the materiality matrix
and the strategy regarding stakeholder expectations
or binding requirements, with a particular focus on the
sustainability strategy

28
Facts, figures & dates

Energy: efficient use and conversion to

renewables demonstrate responsibility
Our goals After a steady increase, we experienced consolidation in Our measures
2022 owing to challenges in the energy sector, among other
We have set ourselves the goals of improving energy efficien- things. By 2022, we had conducted external energy audits at the
cy and using more green energy. This includes increasing sites which were using 80 % of our energy and formulated
the proportion of sustainably generated electricity to 50 % of We are aiming to reduce energy consumption per tonne of action based on the results.
our total consumption by 2025. We exceeded the 76 % mark product from 652 to 575 kWh by 2025. We suffered setbacks We aim to have our smaller sites analysed by 2026. A pro-
ahead of schedule in 2022. A new target was therefore requi- here in 2022 because our success at focus locations was mising initiative within our European sites consists of ensu-
red: we are now aiming to use 100 % sustainably produced unfortunately overcompensated for by the return of emp- ring that the demand for process energy is more effectively
electricity by 2030. loyees to the sites after the pandemic, data correction and matched to actual need.
the reduction of production quantities.
We want to increase the proportion of green energy to 60 %
of our total energy consumption by 2030 and 90 % by 2045. Energy consumption per tonne of product

660

640 652 645

620 633

600 615

[ kWh/t ]
596
580

560

540

520

500
2018 2019 2020 2021 2022
2025 target: 575 kWh/t

29
Facts, figures & dates | Energy: efficient consumption and conversion to renewables demonstrate responsibility

Other important initiatives include: exchanging best prac- employees are involved in and informed about reducing the current systems in India and Mexico, we are planning
tice, expanding energy monitoring activities, converting all energy consumption. the installation of solar panels in Spain, France, Italy and
lighting to LED, optimising compressed air consumption in- Belgium in the coming years.
cluding loss reduction, replacing energy-intensive systems, When sourcing green electricity, we ensure we purchase
enabling the demand-driven provision of heat for produc- from dedicated plants (power purchase agreements) and
tion processes, conducting a feasibility assessment of the try to continue increasing its share, obtaining certificates Results and recommendations
use of waste heat from production processes and ensuring of origin. There is also our own generation: in addition to
After coping with the upheaval caused by the energy crisis
in 2022, we must resume our focus on switching to green,
Key figures: energy non-fossil energy supplies – particularly where we now use
KL Group including sales sites 2018 2019 2020 2021 2022 gas – and increasing energy efficiency.
Total direct energy 18,575 25,032 23,030 23,066 25,067
(gas oil, renewable energy,
self-generated energy) (MWh)
of which renewable/self-generated 0 0 780 808 349
Total indirect energy 18,887 24,902 24,157 25,868 25,080
(electricity, steam, district heating) (MWh)
of which renewable 2,236 4,687 12,871 18,759 19,223
Total energy in MWh 37,462 49,934 47,187 48,934 50,147
Total renewable energy, 2,236 4,687 13,651 19,567 19,223
including self-generated
Renewable (green) electricity as % of indirect 12 % 19 % 55 % 73 % 76 %
energy and self-generated electricity
Renewable energy as % of total energy 6% 9% 29 % 40 % 38 %

30
Facts, figures & dates

CO2eq emissions and climate neutrality –

the key challenge of this decade: Scope 1 and 2

Our goals Energy-related CO2 emissions per tonne of product Absolute CO2eq emissions

In 2019, Klüber Lubrication’s Innovation Board set the target 200 55,000
of reducing our energy-related CO2 emissions per tonne of 66
product by 40 % by 2025. In 2021 – just two years later – we 50,000
150 59
had already achieved a reduction of 47 %. We have set our- 32,524
45,000
selves a new target for 2025: a reduction of 50 %, compared

[ kg/t ]
142 63
100 40,000
to our 2019 emissions. 108 57 65 29,815
35,000
50 73 26,390
Klüber Lubrication also set itself the ambitious target of 54 51 30,000

[t]
reducing its CO2eq emissions by 75 % by 2025 (Scope 1 and
2), compared to 2019. Much to our surprise, we also achieved 0 25,000
2018 2019 2020 2021 2022 15,528
this target ahead of schedule in 2022: we reduced CO2eq 20,000
emissions by an outstanding 76.1 %. But that is still not
2025 new target: –50 % (compared with 2019) 15,000
enough: Klüber Lubrication has committed itself to not only Scope 1: direct energy, e.g. gas 5,151 1,937
further reducing its annual remaining residual emissions, but Scope 2: indirect energy, e. g. electricity 10,000
3,798 11,278 4,679
also, from 2022 onwards, to offsetting them through external 5,000 4,785 5,493
6,914
projects and thus becoming climate neutral. 5,619 4,723 4,287
0
2018 2019 2020 2021 2022
for 2021. For our target of calculated climate neutrality in
Our measures 2022, we selected offset projects in El Salvador, India and
2025 target: –75 % (compared with 2019)
Brazil. These also support other SDGs as well as clima- Scope 1: solvents
We implement our multi-step climate neutrality strategy te protection. They were selected by a team along with Scope 1: direct energy, e.g. gas
every year. The priorities are: replacing solvents with high Freudenberg Business Services based on the criteria of the Scope 2: indirect energy, e. g. electricity
greenhouse potential, switching to high-quality green elec- Development and Climate Alliance in the categories of CO2
tricity, including in-house production, and carrying out prevention and elimination.
energy efficiency measures.

At the end of 2021, we had our carbon footprint verified by

external specialists in line with the Greenhouse Gas Proto-
col. Their recommendations were implemented with effect

31
Facts, figures & dates | CO2eq emissions and climate neutrality – the key challenge of this decade: Scope 1 and 2

Results and recommendations ment will be lower in the coming years because there is only Unfortunately, the term “climate neutrality”, as well as certain
another 24 % of the original amount left to improve. For offset projects and providers, is the subject of public debate.
The reduction of CO2eq emissions at Klüber since 2019 the first time in its history, Klüber Lubrication has achieved We are monitoring this and reviewing our strategy.
significantly exceeds the SBT1 (science-based target) by an “calculated climate neutrality” (Scope 1 and 2) because the
average of –25.3 % per year. However, the rate of improve- significantly reduced residual emissions were offset in 2022.

Our offset projects

Ventus wind farm, El Salvador Andhra Lake wind power project, India Agrocortex South Amazon forest protection project, Brazil
Contributes towards promoting the energy transition in El Salvador2 Electricity for India’s transition to a low-carbon Protecting the species-rich Amazon region from deforestation
economy
The project involves the construction and operation of a wind farm in This project protects over 186,000 hectares of the south-west Amazon
the municipality of Metapán in north-west El Salvador. In total, 15 wind Located on Andhra Lake in the state of Maharashtra, India, this project rainforest in Brazil from deforestation caused in the past by livestock
turbines are being installed to generate renewable energy. The project involves the installation and operation of 63 wind turbines that produce breeding and logging, both legal and illegal. As well as reducing emis-
supplies clean electricity to the grid, enough to meet the demand of green electricity. By replacing fossil fuel energy, the project reduces sions by preserving the forest’s carbon stocks, the project also creates
around 80,000 households, and is thus helping to reduce the country’s GHG emissions and supports the country’s transition to a low-carbon benefits for the surrounding communities and the biodiversity of the
dependence on non-renewable resources and to cut down on emissions. economy. In addition, permanent and temporary jobs are being created ecosystem.
here for local workers – this also improves local economic conditions in
Project successes the region. Project successes
Meals for all employees were provided by the project
Project successes organisation in order to prevent unnecessary fishing or
185,000 MWh per year generated on average
hunting in the project area

300 job opportunities created for local residents during the 80,000 MWh of clean electricity fed into the grid on On-the-job training for employees, including in the areas of careful
project construction phase average every year logging practices, safety at work, first aid and fire fighting

Creation of jobs for local people during the installation and 700 job opportunities created by the project, which boost the
103,000 tonnes of CO2eq saved per year on
operation of the wind turbines local economy and contribute to regional development
average

76,000 tonnes of CO2eq are saved per year on average 483,000 t CO2eq on average prevented per year

1
 he Science Based Targets Initiative (SBTi) is a joint initiative between the CDP (Carbon Disclosure Project), the United Nations Global Compact, World Resources Institute (WRI) and the World
T
Wide Fund for Nature (WWF). It aims to set science-based climate targets.
186,219 ha of Amazon rainforest protected from logging
2
Information according to project provider

32
Facts, figures & dates

An even greater challenge: working together to

reduce Scope 3 emissions in the supply chain

Our goals Corporate Carbon Footprint 2022

Since 2019, Klüber Lubrication’s Innovation Board has set out

the following in our sustainability mission statement and our
2045 sustainability strategy: in conjunction with our suppliers,
we strive to achieve ethical procurement and to continually
improve our raw materials footprint. We also aim to optimise
the sustainability of our product portfolio and new develop-
ments to improve impacts throughout their life cycles and
for our customers. Klüber Lubrication is planning to become
climate neutral as per Scope 3 emissions by 2045 as well.

12. End of service life

2. Investment goods and services 4,756 t CO2eq 229,181 t CO2eq

3. Fuel-related and energy-related activities

2,600 t CO2eq

6. Business trips 4,462 t CO2eq

9. Downstream transport
7. Employee commuting 2,378 t CO2eq 25,209 t CO2eq

8. Upstream leased equipment 2,695 t CO2eq

5. Waste 9,481 t CO2eq
11. Use of sold products 238 t CO2eq
3. 8.
15. Capital expenditure 317 t CO2eq 1. Purchased goods and services 4. Upstream transport
340,878 t CO2eq 76,103 t CO2eq 2. 6. 7. 11. 15.
Total: 698,299 tonnes CO2 equivalent

Numbering corresponds to Scope 3 categories.

33
Facts, figures & dates | An even greater challenge: working together to reduce Scope 3 emissions in the supply chain

Our measures Results and recommendations It was new and informative for us to consider Scope 1, 2
and 3 together. Due to Scope 3’s great dependence on
In 2022, we worked with a renowned external consulting firm We have specified the climate neutrality obligation for Scope production volumes, it makes sense to consider the relative
to define our Scope 3 emissions more precisely and formulate 1–3 as a key objective for all strategy reviews. The proper emission intensity as a target: through a variety of our efforts,
action plans. The focus here is on replacing environmentally understanding of Scope 3 methodology and of our status we succeeded in improving Scope 1, 2 and 3 emissions by
harmful solvents and PFC-optimised (PFC = perfluorocar- has been secured. We have defined essential key resources approx. 11 % in relation to the production volume of 2019–
bons) raw materials and products. In 2022, we defined partial and already approved some. Internal work to raise awareness 2022. Together with our suppliers, partners and customers,
targets for Scope 3 for 2025, 2030 and 2045. continues to be required. In Scope 3 (2022), the categories we will work on further expanding these improvements –
“Purchased goods and services” and “End-of-life” (of pro- and quickly so!
We continuously raise awareness of the importance of the ducts) account for 82 %, followed by “Upstream and downs-
Scope 3 action plan and require this topic to be included in tream transportation”, which represent a further 15 %. Up to
the strategies of all Klüber Lubrication specialist departments, now, we have focused on obtaining certainty in relation to our
regions and sites. Scope 3 accounting methodology and on realising potential
for improvements with major impact.
We are continually improving our sustainability product
portfolio management system and optimising GHG-relevant
Specific carbon dioxide emission (emission intensity)
products, e.g. by replacing solvents with high GHG potential
in products. In 2022, we were thus able to complete 8 out of CO2eq in tonnes, Scope 1, 2 and 3 – total quantities 2019 2020 2021 2022
10 replacement projects and save 47,000 tonnes of CO2eq Scope 1 37,675 31,069 20,313 7,430
Scope 3 annually, equating to around 90 % of the correspon- Scope 2 11,278 5,619 4,723 4,287
ding potential.
Scope 3 720,065 675,685 743,844 698,299
Scope 1–3 769,018 712,373 768,879 710,017
Specific CO2 emissions: tonnes 10.0 9.7 9.4 9.0
CO2eq Scope 1–3 per tonne of product
Difference compared to previous year in % –3.0 –3.9 –4.4
Difference compared to 2019 in % –3.0 –6.7 –10.8

34
Facts, figures & dates

Water and waste – important elements of

optimal resource use

Our goals Total waste generated per tonne of product Total water consumption per tonne of product

In our guideline on quality, environmental protection, work­

70 1.2
place safety, health and diversity, we have set ourselves the
goal of reducing the environmental impact of all our activi- 65 1.0
66.8 1.01
ties and preserving biological diversity. In addition, we are 60
working on further reducing relative energy and material 62.7 63.1 0.8 0.93
0.86 0.82
consumption. 55
0.76
0.6

[ m3/t ]
[ kg/t ]
50 53.2 56.8
From 2021 to 2025, we want to reduce product waste by 4 % ... 0.4
per tonne. We aim to reduce water consumption by 3.7 % in
the same period. 5 0.2

0 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
Our measures
2025 target: 54.5 kg/t 2025 target: 0.79 m3/t
We are taking a decentralised approach: our sites are expec-
ted to work independently on cutting waste and improving
their water consumption. An important element of all our HSE
measures is the global exchange between our subsidiaries,
which we have institutionalised in various forms. Innovative projects, such as minimising sample quantities or we aim to understand the causes better so that we can define
increasing cargo safety and waste reduction by using drum appropriate actions and initiate a turnaround.
To avoid waste and optimise recycling, we usually proceed as guards instead of one-way securing mechanisms, have
follows: spread quickly via global exchange. With regard to water, we were able to continue the positive
– Raise awareness and provide training for employees trend of previous years. We further increased our water effi-
– Separate waste in line with local regulations ciency per tonne of product and thus achieved our 2025 tar-
– Minimise the length of filling lines Results and recommendations get ahead of schedule. In light of increasing water shortages
– Optimise cleaning procedures of production facilities in many countries, we are continuing to work on minimising
– Adapt production range to enable bigger sequences of With our generated waste per tonne of product, we have consumption.
batches with optimised cleaning suffered a significant setback with an increase of 17.6 %. This
– Incorporate residual quantities in production, while observing is partly explained by improved data acquisition, as well as by
relevant quality specifications pandemic-related effects on our supply and purchase mar-
– Improve our warehousing to avoid storing goods for too long kets (such as more consignments, less optimised packaging,
– Re-use pallets returns and expired goods). In joint analyses with our sites,

35
Facts, figures & dates

Safety and protection for our employees,

temporary workers and third parties
Our goals Our measures Accident pyramid 2022

In the Freudenberg Group, we have been pursuing the “Zero We are pleased to report that we were able to further improve
accidents” campaign since 2003. To meet this target, Klüber the number of “good catches”, the proactively recorded
is using an HSE management system that contains specific improvement potential for workplace safety: the number of Death 0
prevention measures for our processes and is continually these rose to 2,363 last year from 2,134 in 2021.
Serious 0
improved with the global HSE team. Klüber has developed its Accidents
own guideline on quality, environmental protection, workplace In the second half of the year in particular, we carried out more
safety, health and diversity. Among other things, it states that integrated Gemba1 walks and put a specific focus on the Accidents 4
we must consistently comply with laws, regulations, and inter- high value of 5S methodology2 for workplace safety through
nal and external system standards, as well as aim to provide reducing risks to health and injuries due to confined space. 4
Medical Treatment Cases
safe and healthy workplaces. It also states that we aim to
minimise risks for customers and hazards for employees. Local job safety analyses and job hazard analyses (JSA/JHA3)
First Aid Cases 90
are being transferred to a global cloud solution to enable
We aim to make sure that people in our sphere of influence further cross-learning with regard to identified hazards and

Catches
do not come to any harm. This applies to anyone on our com- minimised risks – this includes health risks. 685

Good
Unsafe Acts
pany premises, including temporary workers and contractors.
It also applies to our employees when they are on premises Unsafe Conditions 1.638
belonging to other companies. Unfortunately, we were less
successful in this regard in 2022, although there are indica-
tions that our good safety culture is improving further.
Graphic representation of the various impacts of an accident. The
accident pyramid stands on a wide base made up of recorded
improvement potential (the “Good Catches”). In the second year of
the coronavirus pandemic, more than 1,500 “unsafe acts” and urgent
“unsafe conditions” were proactively identified.

1
Gemba: in the sense of “workplace”
2
5S is a methodology that creates a safe, clean and uncluttered workplace and environment. In English, the 5S can be interpreted to mean: Sort, Set in order, Shine, Standardise and Sustain.
3
JSA: Job Safety Analysis; JHA: Job Hazard Analysis

36
Facts, figures & dates | Safety and protection for our employees, temporary workers and third parties

Results and recommendations Operational safety – target and actual

Unfortunately, the number of work accidents resulting in a day

LDIs
or more of inability to work (LDI) was significantly higher than
3.5 MTCs
in the previous year. However, we are pleased to report that 16
the total number of days absent fell. The number of days lost 3.0 14 LDIFR target
per LDI was also lower than 2021 – by 30 %. 1 LDIFR process
2.5 12
6 12
2.0 10
A common cause of safety-related incidents was lack of WRIFR target
space. This cause is located in unstable supply chains, which Max. 1.5 8 WRIFR process
1.5 6
resulted in fewer reliable deliveries of raw and packaging 4 Max. 6
1.0 4
materials as well as delivery peaks at our sites. 6 3 Max.0.6 4 Since 2020:
0.5 Max. 2 Klüber Lubrication incl. Traxit
Although not all indicators show positive trends, the safety 2 2 4 3
0.0 0
culture is continuing to improve further. Contributing signifi- 2018 2019 2020 2021 2022 Targets
cantly here are the increasing transparency of tried-and-tes- 2023

ted practices and global cross-learning within our organisa-

tion. Our HSE experts will be able to reduce the time required The figures shown in the graph include all accidents for which treatment by a medical professional was required, as well as accidents resulting in an
absence lasting longer than one day.
for office work in the future and thus have more time for inter-
action with employees on site because of the mobile digital
solutions which we began introducing as a global standard
last year. Glossary of occupational health and safety abbreviations

Abbreviation Meaning Explanation

WRI Work Related Incident Accident at work (employee or LDI and MTC
(employee or temporary worker) temporary worker)
LDI Lost Day Incidents with 1 day or Accident at work with 1 day or One of the key figures used to record the
LDI1 more of inability to work more of inability to work number of accidents of a severity requiring 1
or more days of interruption to work
MTC Medical Treatment Case Accidents with medical treatment One of the key figures used to record the
(employee or temporary worker) that exceeds first aid (employee number of accidents of a severity requiring
or temporary worker) more than first aid
LDIFR1 LDI1/WRI Frequency rate LDI1/WRI Frequency rate Key figure used to record the frequency rate
WRIFR per 1 million work hours per 1 million workhours of accidents of a severity requiring more than
first aid

37
Facts, figures & dates

Sustainable and ethical procurement

Our goals ment and human rights in the supply chain, we use the Eco-
Vadis platform, which was introduced in 2022. With EcoVadis
We aim to enforce ethical, legally compliant and sustainable IQ, we are able to carry out a risk analysis in the supply chain
behaviour throughout our entire supply chain. Our suppliers and also gain an insight into further supplier assessments
are expected to apply best practice standards which enable via EcoVadis ratings. Remedial and corrective action is also
us to continuously improve the footprint and handprint of our initiated in conjunction with the supplier, if necessary. This
products and our business, minimise risks, boost customer enables us to create transparency around corporate social
satisfaction and promote sustainability. responsibility issues in the supply chain.

In 2022, our parent company Freudenberg set up a com-

Our measures plaints office which can also be used by Klüber suppliers.
A process was established to deal with incidents relating to
Klüber Lubrication has long-standing business relationships Klüber Lubrication. Previously, neither internal nor external
with its raw material and packaging suppliers and is in regular complaints about incidents in the supply chain had been
contact with them. The suppliers are usually multinational, i.e. reported.
they have plants in different countries. Well over 50 % of our
suppliers are based in North America and Europe. We seek to In Germany and Austria, we regularly award contracts to
work with local suppliers within the country or the continent, organisations supporting people with disabilities in order to
as far as the international orientation of the company allows. make a contribution towards inclusion.
Global and strategic suppliers are handled by lead buyers in
the company’s headquarters. Suppliers who are relevant for The sustainable use of resources is becoming more and
specific, individual production plants are taken care of by buy- more important for many people – whether they are private
ers in the respective plants. individuals, consumers or employees of Klüber Lubrication.
For us as a lubricant solution supplier, it is not just about the
We have set our own comprehensive standard for sustainable lubricant itself – the packaging is also becoming increasingly
procurement; this is the basis for our work with our suppliers. relevant. The EU Green Deal and our own corporate sustain-
A supplier code based on the UN Global Compact has there- ability targets require us to cut down on packaging waste and
fore been in place since 2015. It is mandatory for existing reduce the “CO2 rucksack” of our products. Through intensive
suppliers and for new suppliers. When onboarding new sup- collaboration with R&D, Purchasing and Product Manage-
pliers, the response of the supplier is rated and assessed. ment, it has been possible to introduce more containers
To detect potentially negative impacts regarding the environ- made from recycled plastic (PCR).

38
Facts, figures & dates | Sustainable and ethical procurement

This enables us to improve the footprint of our products, Results and recommendations Average of Average of all
reduce environmental impacts and conserve fossil resources. Klüber Lubrication companies
suppliers assessed by
Suppliers must agree to abide by our code of conduct, EcoVadis
We are also involving our suppliers in our efforts to achieve have their own code of conduct that meets our expecta-
Environmental 59 45
our target of becoming climate neutral, including Scope 3, by tions or be a signatory to the UN Global Compact. We do
2045. We have identified milestones and key issues and have not work with suppliers who fail to meet this condition. All Labour and 57 48
human rights
informed our suppliers about our goals and expectations – of Klüber Lubrication’s raw material and packaging sup-
for example, that we calculate and continuously improve the pliers comply with this condition.
carbon footprints of products. We also require our suppliers
to do this. In 2022, a business relationship was started with 72 new We did not have to terminate any business relationships
suppliers for raw materials and packaging. All suppliers with suppliers due to serious problems relating to the en-
We raise awareness of CSR topics among our lead buy- start in accordance with the above requirements and are vironment or human rights. Other suppliers are continually
ers and enable them to regularly participate in training. In also subject to a risk assessment with EcoVadis IQ on the invited to EcoVadis ratings, in line with the risk analysis.
2022, all lead buyers received basic training as part of the topics of the environment and human rights.
introduction of EcoVadis. More extensive, in-depth training We seek to work with suppliers who are based in the same
is scheduled for 2023. The lead buyers have also included Since the introduction of EcoVadis, we have had the Eco- country or continent as the relevant production plant.
specific topics in their personal objectives for 2023 in order Vadis assessment results for 23 % of all raw material and
to contribute to sustainable procurement and drive it forward. packaging suppliers2 as of December 31, 2022. Our sup- Proportion of local3 suppliers (raw material and packaging)
We are continuously expanding our sustainable procurement pliers show better results than the EcoVadis benchmark.
management system. North America South America Europe Asia
92 % 79 % 97 % 93 %

Expectations of suppliers up to 2035

2025 2030 2035

Continuous methodological improvement including

Product carbon footprint 100 %
expansion to Life Cycle Assessment (LCA)

CO2 footprint1 –30 % –50 % –75 %

Proportion of recycled material 25 % 50 % 75 %

Green energy 50 % 75 % 90 %

Responsible and ethical conduct Participation in EcoVadis assessments and achievement of > 45 points

1
Improvement per product, base year 2022
2
Refers to all suppliers with whom a business relationship existed in 2022
3
Our definition of local means the same continent as the relevant production plant.

39
Facts, figures & dates

Site certifications

Certification refers to a process that helps to prove complian- Location Quality Environmental Workplace Food and pharma
ce with certain requirements. Certifications are often awarded protection safety
for a limited period of time by independent certification bodies, ISO 9001 IATF 16949 ISO 14001 OHSAS 18001/ ISO 21469 Kosher, halal
such as DNV or TÜV, who are also responsible for independ- ISO 45001
ently monitoring compliance with standards. To fulfil all the Austria    
requirements of our customers and meet increasing demands Belgium    
in the quality and environment sector, Klüber Lubrication
Italy   
maintains certifications at all of its production facilities. Each
production facility has different requirements with regard to its Germany      
markets, customers or know-how and adapts its certifications Spain      
accordingly. Turkey   
Argentinia   
With our subsidiary Traxit, which we acquired in 2020, we are
pursuing a long-term integration plan which also includes the Brazil      
development of certifications. Mexiko   
USA, Londonderry     
USA, Tyler     
China      
India   

Traxit Germany   
Traxit China* 
Traxit USA
* Closure of one of two Chinese sites decided in 2022, and therefore no longer listed here.

40
Facts, figures & dates

Our training enables our employees to work

sustainably with a focus on customers
Our goals expand this with mandatory training, e.g. on IT security, data Results and recommendations
protection and GDPR or export control. Creating a diverse
The aim of our training concept is to support the Klüber and inclusive work culture, preventing corruption, and sustain- In 2022, 104 % of all Klüber Lubrication employees worldwide
Lubrication vision and strategy as effectively as possible and ability are also among the training topics. Additionally, there took part in training activities. The figure is over 100 % because
thus drive forward the development of our company in a is a range of training on required language and management it also includes people who left the company during the year.
timely and targeted manner. Through continuous training, we skills as well as other soft skills. The number of training days averaged 5.43 per person, i.e.
enable both new and existing employees to efficiently acquire more than one day above the figure of the previous year (4.05)
the necessary new skills and apply them in practice as quickly In our global organisation, we help our subsidiaries design and also above our self-defined target of 5 days. The increase
as possible. We place particular emphasis on reinforcing our and deliver local training. We encourage local training teams is primarily due to digitalisation in the training field.
employees’ focus on customers. to share information and experiences with each other. We also
provide international training at our headquarters in Munich. The trend for ever shorter, but more frequent, learning se-
In line with our principle of “never stop learning”, we motivate quences continued in 2022. In our subsidiaries, training was
our employees to participate in ongoing advance training and expanded with local trainers. The completion rate for global IT
development. At the same time, we continuously adapt our security training was over 86.3 % in 2022.
Quality, Environment, Diversity
training programme to requirements in order to create optimal Safety 1,665 pd 342 pd 3 %
added value and enhance the attractiveness of the programme. 12 %
Technology
2.083 pd 15 % Training days per Klüber Lubrication employee
To assess our training provision, we measure the satisfaction Sales
of participants, the quality of the training and the effectiveness Working 468 pd 3 % 7
Methods
of the training when implemented in practice. There is also 2,751 pd Training 6
the measured value of “training days per employee”, which we 20 % at Klüber
5
have set at five days per year. 2022
Participants 4
IT 3,171 pd
and days 23 % 3
Our measures 2
1
We use the learning management system of our parent com- Management
1,764 pd 13 % Languages 0
pany Freudenberg and thus offer a global, interdisciplinary 1,504 pd 11 %
2018 2019 2020 2021 2022
and cross-functional range of training. We also benefit from
pd: participant days Target
training content provided to us by Freudenberg.
%: Share of the topical field in all trainings

Our specific basic training includes introduction days for new

employees and technical basic and product training. We

41
Facts, figures & dates

Respecting diversity and promoting inclusion

are cornerstones of our corporate culture
Our goals Our measures Results and recommendations
As a company within the Freudenberg Group, we align our- In order to meet our own requirements, we implemented the Klüber Lubrication has reached its target of increasing the
selves with its management principles. This includes rejecting following measures, among other things, in 2022: proportion of women in management positions by 2025 and
“all forms of discrimination and harassment. We show and – Our Global Diversity Council and the Regional Diversity has raised it further.
demand understanding and respect when interacting with Councils in Europe, North America, Asia-Pacific, China and
one another. We promote a multicultural environment where South America/Australia hold quarterly progress meetings Proportion of women in leadership positions
employees work together in worldwide teams to enrich our – Introduction of Freudenberg’s Diversity and Inclusion 2025
culture and capability.”1 Curriculum for all employees target 2020 2021 2022
– Promotion of gender diversity, e.g. through the creation Number Proportion Number Proportion Number Proportion
of women’s networks (as in Germany, South America and 25 %
110 24.2 % 124 25.4 % 136 25.9 %
1
Freudenberg Guiding Principles.
Turkey)
– Selection of a coaching provider with a special focus on the
development of female candidates We have increased the proportion of women in technical sales
– Commitment to find and invite (if qualifications are suitable) positions through successfully recruiting women for field staff
at least one female candidate for each position. We continu- positions in Germany, Eastern Europe and Turkey.
ously monitor compliance with this requirement
– Increase ethnic diversity in the USA
– Investment in services provided by companies who employ
people with disabilities

42
Facts, figures & dates

Compliance is based on integrity and ethics

and strengthens our reputation
Our goals
A major factor for the success of Klüber Lubrication is its good
reputation. Through our parent company Freudenberg, we are
part of a value-based family of companies whose business is
built on strong ethical principles. We therefore explicitly reject
all illegal or unethical practices in our business operations.
A professional compliance management system helps us
achieve this goal. Compliance is thus an integral component
of our corporate strategy. We foster a culture of openness at
all levels so that compliance remains an intrinsic part of our
company DNA. Klüber Lubrication espouses the principles of
the Freudenberg Code of Conduct and has developed a wide
range of its own compliance guidelines. In addition, we adhere
to the guidelines issued by our parent company, particularly
the Freudenberg Guiding Principles, Freudenberg business
principles, the Antitrust Guideline, the Anti-Bribery and Anti-
Corruption Guideline and the Catalogue of Standard Internal
Controls.

43
Facts, figures & dates | Compliance is based on integrity and ethics and strengthens our reputation

Our measures Structural plan of Klüber Lubrication Since compliance rules are only as good as their enforcement,
Compliance Management we place great emphasis on the fact that a good compliance
Klüber Lubrication pursues compliance according to a struc- culture motivates employees to adhere to our rules. The
tured plan. This includes the definition of the requirements of In terms of requirements, the principles for delegating employ- Compliance Office’s homepage is an important communi-
our compliance system, the risk analysis, the organisation, the er duties and competencies were rolled out globally in 2022. cation tool in this regard. We regularly publish articles on our
compliance-specific processes and the integration of compli- We thus took a further important step towards establishing a intranet to raise awareness of critical topics such as conflicts
ance in the company’s specialist processes. legally secure compliance management system. of interest or corruption. A video message from the Manage-
ment Board in 2022 affirms Klüber’s commitment to behaviour
In 2022, the focus of the risk analysis in this area was on com- which is unconditionally adherent to the rules.
batting money laundering. We also carried out a very detailed
Requirements of a consistent self-assessment of internal control processes. As in previous years, all employees worldwide were also
compliance system re­quired to complete an e-learning course in compliance.
Klüber Lubrication has established the Freudenberg Group’s Another important tool for establishing compliance in specialist
first anti-money laundering management system and ap­ processes is the compliance letter, which is used annually in
point­ed a Klüber Money Laundering Coordinator. In addition, a bottom-up approach by departments and subsidiaries to
Compliance Klüber Lubrication has introduced its own anti-corruption confirm that they are familiar with and are applying the com­
risk analysis guideline. pliance rules.

Investigating compliance violations and protecting whistle-

blowers are our top priority. Employees are regularly informed Results and recommendations
Compliance that information can be reported to the Compliance Office
organisation via a dedicated hotline or anonymously via the Freudenberg The success of our actions can also be measured by the fact
Ethics Office. In the past year, comments and violations conti- that the number of enquiries and comments from employees
nued to be processed strictly in accordance with the princip- has steadily increased. We see this as vital confirmation that
les of our Case Management Policy. awareness of the importance of compliance for the company
Internal compliance has continuously developed.
External specialists help us evaluate our compliance ma-
processes
nagement processes every year and integrate them into the
corporate strategy.

Integration of compliance in
specialist processes

44
GRI-Index

With this year’s sustainability report, we are once again aligned particular standards can be found on the corresponding pages of to the UN Sustainable Development Goals (SDGs), which are an
with Global Reporting Initiative (GRI) standards and are reporting the sustainability report. We have also included links to relevant important foundation for our work in the areas of sustainability
for the first time with reference to the GRI standards 2022. The information on our website or noted information in the comment and responsibility.
corresponding GRI index is presented below. Information on column. In the index, we also refer to the relevant contribution

Statement of use Klüber Lubrication München GmbH & Co. KG has reported the information cited in this GRI content index for the period 01.01.2022 - 31.12.2022 with reference to the GRI Standards.

GRI 1 used GRI 1: Foundation 2021
GRI 2: General Disclosures 2021

GRI-Standard Disclosure Location Comments SDG

GRI 2: 2-1 Organizational details 2-1-a Klüber Lubrication München GmbH & Co. KG
General Disclosures 2021 2-1-b Klüber Lubrication is a business division of
Freudenberg Chemical Specialities GmbH and has belonged to the
Freudenberg Group since 1966. The Freudenberg Group is based
in Weinheim, Germany.
2-1-c Munich, Germany
2-1-d https://www.klueber.com/global/en/company/locations/
2-2 Entities included in the organization’s sustainability reporting p. 21

2-3 Reporting period, frequency and contact point p. 21 2-3-c Published in May 2023
2-4 Restatements of information No significant changes or corrections were made.
2-6 Activities, value chain and other business relationships 1)

2-7 Employees p. 5
2-8 Workers who are not employees p. 5
2-9 Governance structure and composition p. 23
2-12 Role of the highest governance body in overseeing the management of impacts p. 21, 23
2-13 Delegation of responsibility for managing impacts p. 23
2-14 Role of the highest governance body in sustainability reporting p. 21, 23
2-16 Communication of critical concerns p. 23
2-17 Collective knowledge of the highest governance body p. 23
2-22 Statement on sustainable development strategy p. 3
2-23 Policy commitments 2)

2-24 Embedding policy commitments p. 23, 38, 39,

41, 43, 44

1)
https://www.klueber.com/global/en/company/klueber-lubrication-an-overview/
2)
https://www.klueber.com/ecoma/files/Guideline_HSE_EN.pdf https://www.freudenberg.com/company/responsibility

45
GRI-Index

GRI-Standard Disclosure Location Comments SDG

GRI 2: 2-26 Mechanisms for seeking advice and raising concerns p. 44
General Disclosures 2021
2-28 Membership associations p. 22 Focus on sustainability and ESG
2-29 Approach to stakeholder engagement p. 28
GRI 3: 3-1 Process to determine material topics p. 26, 27
Material Topics 2021
3-2 List of material topics p. 26, 27
GRI 204: 3-3 Management approach p. 38, 39
Procurement Practices 2016
204-1 Proportion of spending on local suppliers p. 39 12
GRI 205: 3-3 Management approach p. 44 16
Anti-corruption 2016
205-2 Communication and training about anti-corruption policies and procedures p. 44
GRI 302: 3-3 Management approach p. 7, 25, 26,
Energy 2016 29, 30
302-1 Energy consumption within the organization p. 7, 11, 30 7
302-2 Energy consumption outside of the organization p. 31 7
302-3 Energy intensity p. 29
302-4 Reduction of energy consumption p. 7, 29–31 7, 12, 13
GRI 303: 3-3 Management approach p. 24, 26, 35
Water and Effluents 2018
303-5 Water consumption p. 35 6, 12
GRI 304: 3-3 Management approach p. 17, 18 3, 6, 9, 12,
Biodiversity 2016 13, 14, 15,
17
GRI 305: 3-3 Management approach p. 26, 31
Emissions 2016
305-1 Direct (Scope 1) GHG emissions p. 31, 34 13
305-2 Energy indirect (Scope 2) GHG emissions p. 33, 34 13

305-3 Other indirect (Scope 3) GHG emissions p. 31, 34 13, 17

305-4 GHG emissions intensity p. 31, 34

305-5 Reduction of GHG emissions p. 7, 9, 31, 34 12, 13
GRI 306: 3-3 Management approach p. 26, 35
Waste 2020
306-2 Management of significant waste-related impacts p. 35 12, 14, 15
306-3 Waste generated p. 35 12, 14, 15
GRI 308: 3-3 Management approach p. 8, 38, 39 12, 17
Supplier Environmental
308-1 New suppliers that were screened using environmental criteria p. 38, 39 12
Assessment 2016
308-2 Negative environmental impacts in the supply chain and actions taken p. 39 12

46
GRI-Index

GRI-Standard Disclosure Location Comments SDG

GRI 403: 3-3 Management approach p. 26, 36
Occupational Health
403-1 Occupational health and safety management system p. 36 3, 8
and Safety 2018
403-2 Hazard identification, risk assessment, and incident investigation p. 36, 37 3, 8

403-4 Worker participation, consultation, and communication on occupational health and p. 36, 37 3
safety
403-5 Worker training on occupational health and safety p. 36, 37 3
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by p. 36, 37 3
business relationships
403-9 Work-related injuries p. 36, 37 3
GRI 404: 3-3 Management approach p. 41
Training and Education 2016
404-1 Average hours of training per year per employee p. 41 4, 8
GRI 405: 3-3 Management approach p. 27, 42
Diversity and Equal Opportunity
405-1 Diversity of governance bodies and employees p. 42 5, 12
2016
GRI 406: 3-3 Management approach p. 38, 39, 42 5, 12
Non-discrimination 2016
GRI 407: 3-3 Management approach 1)
8, 12
Freedom of Association and
Collective Bargaining 2016
GRI 408: 3-3 Management approach p. 38, 39 2) 8, 12
Child Labor 2016
GRI 409: 3-3 Management approach p. 38, 39 3) 8, 12
Forced or Compulsory Labor 2016
GRI 410: 3-3 Management approach p. 38, 39 3, 8, 12
Security Practices 2016
GRI 414: 3-3 Management approach p. 22, 38, 39 8, 12
Supplier Social Assessment 2016
414-1 New suppliers that were screened using social criteria p. 39 8, 12

414-2 Negative social impacts in the supply chain and actions taken p. 39 8, 12
GRI 416: 3-3 Management approach p. 12, 22, 26
Customer Health and Safety 2016
416-1 Assessment of the health and safety impacts of product and service categories p. 12, 26 3
4)

GRI 417: 3-3 Management approach 5)

Marketing and Labeling 2016

417-1 Requirements for product and service information and labeling 6)
3, 12

1), 2), 3)
https://www.klueber.com/ecoma/files/Ethical_standards_for_suppliers_EN.pdf
4), 5), 6)
https://www.klueber.com/global/en/company/compliance-of-all-raw-materials-and-products-with-chemicals-law/

47
Legal notice

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Publisher and copyright:

­
Klüber Lubrication München GmbH & Co. KG

Reprints, in full or in part, only with source citation and sending a specimen copy and only after consulting
with Klüber Lubrication München GmbH & Co. KG.

Products of Klüber Lubrication are constantly being developed. Klüber Lubrication München GmbH & Co.
therefore reserves the right to change any technical data in this publication at any time without prior notice.

Klüber Lubrication München GmbH & Co. KG

Geisenhausenerstraße 7, 81379 Munich, Germany

Munich District Court

Commercial register no. HRA 46624
­Klüber L
­ ubrication – your global specialist
Innovative tribological solutions are our passion. Through personal contact and consultation,
we help our customers to be successful worldwide, in all industries and markets. With our
ambitious technical concepts and experienced, competent staff we have been fulfilling in-
creasingly demanding requirements by manufacturing efficient high-performance lubricants
for more than 90 years.