Management of Impacts, Risks and Opportunities

Double materiality assessment process

Zeppelin conducted a double materiality assessment (DMA) based on the ESRS standards and defined the following process for this purpose. This assessment was conducted for the first time in the 2024 financial year; therefore, there are no changes to previous reports.

We determined and evaluated the impact on people and the environment, as well as the potential risks and opportunities, for all ESRS topics related to Zeppelin's business models and activities, for both Zeppelin's own operations and the entire value chain. The impact assessment considered positive and negative impacts, as well as actual and potential impacts, related to sustainability issues. The financial assessment evaluated potential and existing sustainability risks and opportunities that could impact Zeppelin financially. For both perspectives, an estimate was made as to when and how long the respective issue will occur. Internal experts from the business units and Group functions were involved in conducting the double materiality assessment, as well as discussions with external stakeholders. The assessment was carried out for the entire Zeppelin Group, taking into account country- and SBU-specific characteristics.

In accordance with the ESRS guidelines, three indicators – magnitude, extent, and immutability – were used to evaluate the severity of the impact. The extent of the impact on the environment or people was evaluated in the assessment of "extent." The "scope" assessment determined the extent to which the impact is far-reaching, based on metrics such as the percentage of sites, employees, or financial expenditures affected. The "irreversibility" assessment evaluated the difficulty of reversing the damage in terms of cost and time. An additional metric, "probability," was assessed for potential impacts. Materiality is determined in the impact assessment by considering the probability of occurrence, extent, and scope of potential or actual positive or negative impacts. Materiality also considers whether the consequences can be reversed through suitable measures. The financial assessment considers the probability of occurrence and the financial extent. Based on these criteria, materiality is determined by multiplying the respective factors.

Results of the double materiality assessment

The performance of the double materiality assessment revealed the following material topics for Zeppelin:

For our business operations, material topics arise from standards E1 and S1. Additional environmental and social issues were identified as material across the upstream and downstream value chains. Topics E1, E3, S1, and G1 have a material financial impact. Topics E5, S3, S4, and specific subtopics were deemed non-material during the double materiality assessment. These material topics are considered in the Group strategy to identify opportunities and mitigate risks. This consideration also includes interaction with respective business models.

To derive preventive and corrective measures and opportunities, the identified impacts are divided into two categories: potential and actual.

Policies and actions

Objectives and strategic anchoring

As part of its sustainability strategy, the Zeppelin Group has established a series of sustainability goals that have been cascaded down to the company level. One focus is the sustainable expansion of the product and service portfolio, e.g., offering low-emission or emission-free machines, as well as efficiency-enhancing and product life-extending services. Zeppelin supports its customers in achieving their sustainability goals and making their value creation processes more sustainable. Ecological goals are supported by a modernization strategy for all property locations. This strategy includes extensive energy renovation measures, expansion of renewable energies and electromobility, and measures to reduce water withdrawals. Continuous investment in renewing vehicle fleets ensures that progress in sustainability and energy efficiency in the automotive industry contributes to Zeppelin's goals.

Integrated management system

Zeppelin has management systems in place for work-related health and safety, the environment, energy, and quality. An integrated management system (IMS) ensures continuous improvement in all certified areas, creating uniform standards and a common basis for documentation. Progress within the scope of the IMS is monitored through regular internal and external audits as part of the recertification process. The quality management system (ISO 9001), the work-related health and safety management system (ISO 45001), and the environmental management system (ISO 14001) apply to all German companies and their subsidiaries. The energy management system (ISO 50001) also applies to Austria, Slovakia, the Czech Republic, Poland, Sweden, and Denmark.¹

Corporate policies

The Zeppelin Group uses group guidelines and process descriptions to establish a sustainability-oriented culture and support the achievement of sustainability goals. Employees can access these policies via the Policy Center and/or their departments' intranet pages. Additionally, the Declaration of Principles on Respect for Human and Environmental Rights, the Code of Conduct for Business Ethics and Compliance, and the Code of Conduct for Suppliers are publicly available on the Zeppelin Group website. The group management and management of the companies are the highest level in the Zeppelin Group. They are responsible for implementing all Policies for dealing with material sustainability issues.

The most significant risks, mitigation strategies, and controls associated with the ESRS topics identified in the 2024 double materiality assessment are presented below.

¹ This excludes the following subsidiaries: Zeppelin Lab GmbH, ABS Hydraulik-Service GmbH, Ingenieurbüro Herzbruch GmbH, Magdalena Kitzmann, Meton GmbH, SITECH Austria GmbH, Levotec sro, Construction SITECH CZ s.r.o., Zeppelin Rental Danmark A/S.