E4 Biodiversity and ecosystems

Strategy

Material impacts, risks and opportunities (IROs)

Land-use change, fresh water-use change and sea-use change
Impact materiality	Upstream value chain	Negative impact	Time horizon
		Appropriate land use is required for the operation of our suppliers' sites Raw material extraction can lead to significant changes in land use	Long-term
	Downstream value chain	Negative impact	Time horizon
		Appropriate land use is required for the operation of our suppliers' sites Construction sites and new buildings can lead to a significant changes in land use	Long-term
Direct exploitation
Impact materiality	Upstream value chain	Negative impact	Time horizon
		Zeppelin generates economic profits from land resources, such as iron ore for steel production, a primary product used in construction machinery and engines, and aluminum for plant engineering. Once these resources are extracted, they are no longer available to nature or other people	Long-term
Impacts on the population size of species
Impact materiality	Upstream value chain	Negative impact	Time horizon
		Extracting and processing raw materials can impact nature and the species within it, leading to a local population reduction	Long-term
Impacts on the global extinction risk of species
Impact materiality	Upstream value chain	Negative impact	Time horizon
		Extracting and processing raw materials can impact nature and the species within it, leading to a local population reduction	Long-term
	Downstream value chain	Negative impact	Time horizon
		Our sold or rented equipment and machines can be used in mines for extracting raw materials that may affect animal population.	Long-term
Land degradation
Impact materiality	Downstream value chain	Negative impact	Time horizon
		Construction machinery and equipment can cause significant earth movement, resulting in soil conversion	Long-term
		Positive impact	Time horizon
		Construction machinery and equipment can be used for renaturation	Long-term
Soil sealing
Impact materiality	Downstream value chain	Negative impact	Time horizon
		The use of construction machinery and equipment to seal the soil can negatively impact the water balance, soil fertility, local climate, and biodiversity	Medium-term
		Positive impact	Time horizon
		Construction machinery and equipment can contribute to the renaturation process by being used for demolition work	Medium-term

For the first time, the topic of biodiversity and ecosystems was identified as material in the 2024 double materiality assessment due to their impact on the value chains upstream and downstream. The DMA was based on Zeppelin's business activities but not on all individual locations. The process and stakeholders involved are described in ESRS 2. These topics are closely connected to the material topics of climate change (E1), pollution (E2), and water and marine resources (E3), as well as the resilience analysis performed (see E1). The Zeppelin Group depends slightly on an ecosystem service for the raw material wood due to its use of pallets for transporting and storing construction machinery and equipment. This primarily affects the Construction Equipment Germany & Austria, Construction Equipment International, Rental, and Power Systems SBUs. In the coming years, the further development of sustainability considerations related to biodiversity and ecosystems in strategy and business models will be a task.

Management of impacts, risks and opportunities

Policies

ESRS 2 MDR-P, E4-2

The Zeppelin Group is committed to preserving biodiversity and ecosystems throughout its supply chain to ensure people's livelihoods and the long-term success of the company, as well as the foundation for ecologically responsible business practices. The Zeppelin Group's voluntary commitment, internal regulations, and strategic management approach regarding pollution (E2) have already been described here.

Actions

ESRS 2 MDR-A, E4-3

The measures already listed under pollution (E2) also apply to the area of biodiversity and ecosystems. These measures are not associated with significant capital or operating expenditures.

Actions related to biodiversity and ecosystems

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Goal	Key action	Expected results/contribution to target achievement	Scope	Time horizon	Remedial measures (if relevant)
Avoid land-use change, fresh water-use and marine-use change (upstream and downstream)	Upstream: Supplier Code of Conduct Downstream: awareness-raising measures (e.g. on the efficient use of machinery)	Raising awareness among suppliers and compliance with the Code of Conduct by suppliers Raising customer awareness	Group	Permanent	Not relevant
Avoid direct exploitation (upstream)	Supplier Code of Conduct	Raising awareness among suppliers and compliance with the Code of Conduct by suppliers	Group	Permanent	Not relevant
Avoid negative impacts on the population size of species (upstream)	Supplier Code of Conduct	Raising awareness among suppliers and compliance with the Code of Conduct by suppliers	Group	Permanent	Not relevant
Avoid negative impacts on the global extinction risk of species (upstream and downstream)	Upstream: Supplier Code of Conduct Downstream: N/A	Raising awareness among suppliers and compliance with the Code of Conduct by suppliers	Group	Permanent	Not relevant
Avoid land degradation and promoting renaturation (downstream)	N/A	N/A	N/A	N/A	Not relevant
Avoid soil sealing and promoting renaturation (downstream)	N/A	N/A	N/A	N/A	Not relevant

Progress 2024

Process description

In the reporting year, the Group-wide process description "Biodiversity and air and water pollution control," was developed and published internally (description see E2 Pollution). These internal rules and regulations reinforce Zeppelin's commitment to promoting biodiversity.

Biodiversity campaign "Zeppelin blooms!"

To promote awareness of biodiversity and species protection, the CSR department called for the Group-wide participatory campaign "Zeppelin blooms!" at the beginning of the year, with the support of Zeppelin GmbH's Managing Director and CFO, Christian Dummler. Zeppelin sites around the world participated by planting wildflowers and, in some cases, fruit trees in green spaces to provide food and shelter for pollinators and native insects. Some areas were not mowed as usual, allowing wildflowers to grow. Some sites also installed nesting aids for birds.

Headquarter Garching, Germany

Straubing, Germany

Prague, Czech Republic

Ostrava, Czech Republic

Inzing, Austria

Friedrichshafen, Germany

Targets and metrics

ESRS 2 MDR-T, E4-4, E4-5

For the first time, the topic of biodiversity and ecosystems in the upstream and downstream value chains was identified as material in the 2024 double materiality assessment. The Zeppelin Group has not yet defined any targets in this area, nor have any metrics been collected.