Non-financial Group report
Koenig & Bauer attaches extraordinarily high importance to its responsibility, which is firmly anchored in its corporate values. We have taken our responsibility towards our employees seriously ever since our company was first established more than 200 years ago. In addition to investing in our own future, we also see our strong commitment to in-company training as an element of our corporate responsibility towards the community. We are committed to preserving and protecting the environment through our various initiatives for emission- and resource-optimised products and production processes. As a sustainability enabler, we want to support our customers around the world in their sustainability efforts. Social responsibility as well as the strong voluntary commitment on the part of our employees are also element of Koenig & Bauer’s corporate identity. Integrity in our business activities and respect for human rights are core elements of our corporate governance practices. With our sustainability goals, we want to fulfil our social, ecological, societal and ethical responsibilities and strategically advance our company.
One of the three pillars of our “Exceeding Print” corporate strategy is sustainability with a wide range of environmental, social and governance (ESG) activities. We are aiming to reduce by 2025 the carbon emissions (Scope 1 and 2) of our production plants by 75% compared with 2019 and to achieve carbon neutrality from 2030 onwards. Reducing our Scope 3 carbon emissions is also on our agenda. Another objective of our sustainability efforts is to promote the health of our employees, prevent work-related hazards and minimise the number of workplace accidents. We also want to additionally enhance diversity in terms of gender, age, international background and experience. Alongside diversity as an element of our corporate culture, we want to make use of various activities to take a stand against racism and discrimination. And, finally, we are committed to respecting human rights and preserving and protecting the environment in our supply chain by integrating sustainability into the procurement process and complying with comprehensive due diligence obligations.
As a UN Global Compact participant, Koenig & Bauer is actively supporting the implementation of the United Nations’ 17 Sustainable Development Goals (SDGs), which define the framework for responsible business in economic, ecological and social terms. The UN Global Compact is the world’s largest sustainability initiative for sustainable and responsible corporate governance. The participants have undertaken to support the ten principles of the UN Global Compact in the fields of human rights, labour standards, environmental protection and the fight against corruption, to promote the 17 SDGs within their respective spheres of influence and to report annually on the progress achieved. Koenig & Bauer has identified seven of these SDGs as priorities and is addressing them with strategic sustainability initiatives. In particular, the Group’s diverse sustainability activities are targeted at the following SDGs: “3 Good health and well-being”, “4 Quality education”, “5 Gender equality”, “8 Decent work and economic growth”, “12 Responsible consumption and production”, “13 Climate action” and “17 Partnerships for the goals”. We see our scope for influence and for making a difference in these goals.
We have also joined the Blue Competence sustainability initiative. Launched by German industry association VDMA, it aims to promote sustainability in mechanical and plant engineering as well as to further sustainable solutions in this industry. Koenig & Bauer is also a member of the Healthy Printing Initiative, which aims to advance the implementation of the cradle-to-cradle design approach in the printing industry. Accordingly, the initiative aims to promote the use of environmentally friendly substrates, inks, varnishes and auxiliaries in the printing of paper, corrugated board and cardboard products, plastics and other substrates and ultimately to enable efficient recycling systems. As a member of the 4evergreen alliance, we network with producers of paper, folding cartons and cardboard, brand owners and retailers, suppliers of technology and materials as well as with the waste collection, sorting and recycling industry. The alliance aims to communicate more effectively the benefits of fibre-based packaging materials as alternative solutions and to achieve a recycling rate of 90% for them by 2030. Finally, as a member of the Holy Grail 2.0 initiative, we are working towards finding a common solution for intelligent packaging recycling. Stamp-sized digital watermarks that can be printed on the surface of packaging and function as a “digital recycling passport” are a promising approach for an efficient circular economy. At the regional level, we are a member of Würzburg AG’s Green Network, which aims to connect local companies on matters relating to sustainability.
Disclosure option selected
The separate non-financial Group report was prepared in accordance with Section 315c in conjunction with Sections 289c to 289e of the German Commercial Code and Article 8 of REGULATION (EU) 2020/852 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (hereinafter the “EU Taxonomy Regulation”) and the delegated acts adopted in this regard as well as the interpretation of the wording and terms contained in the EU Taxonomy Regulation and the delegated acts adopted in this regard, as presented in the section entitled “Disclosures on the EU Taxonomy” of the separate non-financial Group report. References to disclosures outside the Group’s non-financial report constitute further information and are therefore not part of the report. The separate non-financial Group report is published independently of the combined management report. The two separate reports are published in the Bundesanzeiger together with the external auditor’s opinion. They are also published on the company’s website at www.koenig-bauer.com/de/investor-relations/finanzberichte/.
Business model, non-financial risk report
and materiality analysis
The Koenig & Bauer Group’s business model is presented in the combined management report (see page 18 of the 2024 annual report). In terms of sustainability, we as a solution provider and technology partner want to support our customers in reducing their ecological footprint. Various eco-components and innovative technical solutions that we have developed help to reduce carbon emissions by lowering energy consumption, waste and the use of other resources such as paints and varnishes. We incorporate sustainability aspects in the process for new and further developments wherever possible. Using detailed sustainability profiles, we present various eco-components and innovative technical solutions for improving energy and resource efficiency. Due to growing customer interest in a carbon-neutral printing press, in which the carbon emissions generated during production are neutralised through climate protection projects, we have worked with partners to develop algorithms and software solutions for the individual calculation of the Product Carbon Footprint (PCF). With the Product Carbon Footprint Calculator developed by the Munich-based start-up Telusio, we can carry out automated PCF calculations for our Rapida medium-format presses with high quality, timeliness and transparency.
Koenig & Bauer’s Management Board is responsible for sustainability, including non-financial reporting on the environmental, employee and social aspects defined by law, the observance of human rights and anti-bribery and anti-corruption precautions. Under the Management Board’s business allocation plan, the Chief Executive Officer is responsible for corporate responsibility (ESG) and, hence, for all reported non-financial aspects. In organisational terms, the Corporate Responsibility department, which reports to the Chief Executive Officer, oversees sustainability. Individual ESG objectives for 2024 constitute a component of the Management Board’s remuneration as an element of the short-term incentive (STI), see the comments in the remuneration report on pages 129 et seq. of the 2024 annual report. Within the Supervisory Board, the Audit Committee is responsible for sustainability/ESG. The Audit Committee was regularly briefed on the progress being made within the Group with respect to the new regulatory ESG requirements, particularly under the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). Following the Audit Committee’s regular updates on ESG regulations and activities, the Chairwoman of the Audit Committee reported to the entire Supervisory Board on the ESG topics discussed. Within the scope of its statutory supervision duties, the Supervisory Board has engaged PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft to audit this separate non-financial consolidated report to obtain limited assurance (see the audit opinion on pages 189 et seq. of the 2024 annual report).
A materiality analysis was conducted to define the main aspects of the non-financial Group report. In accordance with the CSR Directive Implementation Act (sections 315c/289c of the German Commercial Code), the analysis is composed of the following elements: environmental, employee and social matters, observance of human rights and anti-bribery and anti-corruption precautions. The disclosure topics defined are based on the 2022 materiality analysis aligned to the current version of the Sustainability Reporting Standards of the Global Reporting Initiative (GRI). In a preliminary step, a comprehensive list of non-financial matters potentially of relevance for customers, employees, investors and business partners was prepared with respect to these five aspects in accordance with the German Commercial Code. On the basis of this long list, we initially defined the material non-financial issues for our business activities, business relationships, products and services within the five aspects in accordance with the German Commercial Code (HGB) in internal workshops and subsequently in an online survey of external and internal stakeholders. A short list was then prepared setting out all the matters which on a scale from 0 (not material or relevant) to 10 (highly material or relevant) had an average materiality score of at least 5 for the main issue in question and its business relevance. This was aligned to the current version of the Sustainability Reporting Standards of the Global Reporting Initiative (GRI). The internal respondents were managers and experts from operations management, production, service, personnel management, personnel development, quality management, product management and innovation, construction, development & process technology, safety/health/environment, facility management, compliance & internal auditing & risk management, corporate strategy, business/corporate development, marketing and communications. All business units and, in particular, employee representatives across the Group were involved. In addition to industry representatives from other components industries, the external stakeholders questioned primarily included customers and producers of brand-name articles as well as their customers together with banks, scientific experts and students. The following materiality matrix summarises the results:
As in the previous two years, the facts and issues presented in this materiality matrix are also to be included in the non-financial Group report for 2024. The decisive factor here was the comprehensive double materiality analysis, which was carried out in summer 2023 in accordance with the Corporate Sustainability Reporting Directive (CSRD) resp. the European Sustainability Reporting Standards (ESRS) and confirmed the topics identified in the materiality analysis last carried out in 2022 (based on the GRI). Due to the significantly different methodology, additional topics were categorised as material in the double materiality analysis. As the CSRD had not yet been transposed into German law by the time this report was prepared in March 2025, this separate non-financial Group report was prepared in accordance with the applicable regulatory requirements (see “Selected disclosure option” above). No framework was used in the year under review. It can be assumed that disclosures will be made in accordance with the ESRS from 2025 onwards.
Based on the consolidated Group companies, the sections below report on the following material non-financial matters: with respect to environmental matters, these are operational environmental and energy management and ecological printing technology. In addition to our appeal as an employer and the need for diversity, the key employee-related aspects include recruiting and training junior specialists and managers, systematic personnel development as well as health and safety. With respect to social aspects, social responsibility and high product quality in the interests of greater work and process safety in printing operations have been defined as material. This is followed by a presentation of the aspects of the company’s commitment to human rights and high labour standards as well as anti-corruption and bribery precautions.
The risk inventory conducted at the end of 2024 did not identify any material, reportable non-financial risks resulting from own business activities, business relationships, products or services that will very probably have a serious adverse impact on the non-financial aspects mentioned. Risks that affect the company externally are presented in the risk report in the combined management report (see pages 43 et seq. of the 2024 annual report).
Environmental aspects
At Koenig & Bauer, environmental aspects and the observance of high quality and safety standards are taken into account as far as possible along the entire value chain, from the product idea and purchasing to production and the commissioning of the printing presses. Right from the start of the development and design stage, attention is paid to energy and resource efficiency in the assembly and operation of printing presses and finishing equipment. A further focus is placed on minimising noise, dust, odour and carbon emissions during the production and utilisation of our presses as well as the use of environment-friendly substrates and consumables in the printing, finishing and postpress phases. There are different management approaches for the two thematic complexes of corporate environmental and energy management as well as ecological printing technology for customers.
Operational environmental and energy management
Effective environmental and climate protection in the plants as well as the responsible use of resources are priorities for Koenig & Bauer. The production plants in Radebeul, Würzburg and Dobruška hold DIN EN ISO 9001:2015 and DIN EN ISO 14001:2015 quality and environment certification. In addition, our foundry in Würzburg operates an energy management system that has been certified in accordance with DIN EN ISO 50001:2018. The Industrial production company at the Würzburg and Radebeul sites achieved Stage I certification under DIN EN ISO 50001:2018 in the year under review. The Stage II certification process is scheduled for completion in spring 2025. The VisuEnergy X energy management system developed by Koenig & Bauer is used to achieve the necessary transparency as a basis for defining energy-saving measures (see explanations on page 165 of the 2024 non-financial Group report)
A permanent focus of our work is on minimising the consumption of energy and resources in production as well as on reducing workplace emissions. We are consistently investing in efficient technologies and equipment to this end. The use of transport guides in the paint shop, which was launched in the year under review, can reduce the consumption of VCI and blister films for packaging components. Thanks to a new generation of paints, the VOC emissions from solvents and hardeners in the Würzburg paint shop can be reduced by roughly half. In addition, employee awareness of environmental issues and energy saving is raised via the brand ambassador Etti, who is used on our social media channels. In a sustainability tip in November 2024, employees were given practical recommendations on the intranet for saving energy in the office and on the shop floor.
With regard to our ecological responsibility, we want to proactively drive forward and achieve the defined goal of carbon neutrality by 2030 at our production plants. In addition to the key financial figures and ROI calculations ahead of investment decisions, the Group framework guideline for investments stipulates mandatory monitoring of the sustainability impact of investments. Alongside the mandatory assessment of all capital expenditure plans in the Group based on an environmental score tool used by the requester of the capital expenditure, information from the Corporate Responsibility department on the sustainability impact of the planned capital expenditure is also required in the case of a budget of €20 thousand or more. With the environmental score tool provided on the intranet together with an instruction and FAQ document, capital expenditure projects can be evaluated on a Group-wide basis in a standardised, comparable and efficient manner to determine their contribution to improving sustainability. The environmental score calculated with the tool equals the value of the capital expenditure in thousands of euros per total tonnes of carbon saved. Together with the numerical environmental score for the capital expenditure in question, the tool also categorises the capital expenditure according to classes A to G. Class A carbon savings achieved through the planned capital expenditure are the highest and the quotient the lowest. By contrast, class G capital expenditure projects are less energy-efficient relative to the capital invested. If, as is the case with new capital expenditure plans, no energy or resource reference data is available to calculate the carbon savings potential, a check based on soft facts aligned to the ESG (environmental, social and governance) criteria is required at a minimum. In most cases, investment requests currently entail an ESG soft check.
We are also working on improving the carbon footprint in our plants by adopting a green energy policy, which also includes energy efficiency measures. Since the beginning of 2021, we have been sourcing solely green electricity produced from hydroelectric power in Norway for our main Group sites in Würzburg and Radebeul as well as our subsidiary in Löhne. On 1 September 2023, the subsidiary in Veitshöchheim also switched to electricity from renewable energy sources. In addition to three solar thermal systems for climate-neutral water heating, photovoltaic systems are in operation at the Würzburg site to generate its own electricity. Further photovoltaic systems produce green electricity in Mödling and Radebeul. In the year under review, 875,187 kWh of electricity (previous year: 930,388 kWh) were generated by the Group-wide photovoltaic systems. At the Radebeul site, the concept for largely carbon-neutral district heating supplies using green energy could not be executed as planned. However, end of 2023 heating at the Mödling site was switched from gas to district heating derived from carbon-neutral biomass power plants via a link with the district heating network operated by Energieversorgung Niederösterreich.
Alongside the internal production and use of green energy, conservation and energy efficiency at our plants from another important pillar of our green energy policy. In addition to the modernisation and replacement of air compressors and air conditioning units, the compressed air systems are regularly checked for leaks due to their high power consumption in order to save energy through prompt repairs. Compressed air is required at almost all workplaces and production and assembly machines. Another component in our efforts to reduce electricity consumption while simultaneously improving working conditions is the accelerated replacement of lighting systems with highly efficient LED technology at our sites. The corresponding investments and expenses are included in the taxonomy-eligible Category C capital expenditure and operating expenses (see the section on the EU taxonomy). The investment in the new melting plant in the Würzburg foundry was capitalised in the year under review. In addition to the energy savings achieved with the new foundry melting furnaces, the optimised utilisation of waste heat allows energy to be fed into the plant’s internal heating network, while the closed cooling water circuit reduces annual water withdrawal at the Würzburg plant by around 45%.
Dedusting, extraction and solvent distillation plants as well as improved sound insulation in the production and assembly halls reduce workplace emissions such as noise, dust and odour. Supply air systems ensure fresh air at a controlled temperature directly at the workplace. Responsible use of resources also entails sustainable waste management. We want to avoid waste as far as possible and dispose of unavoidable waste appropriately or recycle it in accordance with the legal requirements. With disposal activities, a distinction is drawn between hazardous and non-hazardous materials and between waste recycling and removal. The remeltable metal waste generated in metal-cutting activities in Würzburg is an important raw material in foundry operations. The new foundry melting furnaces also allow the wet casting chips from the machining of large parts in Würzburg to be fully recycled by melting them down. Our waste statistics provide detailed information about the type and quantity of waste produced, broken down according to hazardous and non-hazardous waste.
In addition to the corresponding quantities of waste in tonnes (t), the following table provides an overview of electricity, natural gas, LNG, district heating and other energy consumption in kilowatt hours (kWh) in 2024 compared with the previous year. In earlier reports, the waste and energy figures were only presented for the main sites in Radebeul and Würzburg. In the year under review, water consumption at the Radebeul and Würzburg sites totalled 40,831m3 (previous year: 52,366m3).
Energy consumptions (in kWh) | 2023 | 2024 |
| Electricity | 46,350,673.0 | 43,437,194.7 |
| Gas | 21,908,182.6 | 18,805,592.9 |
| District heating | 12,275,084.0 | 16,000,435.0 |
| Other energy sources | 1,778,488.0 | 2,735,662.0 |
| Amount of waste (in t) | ||
| Waste | 11,591.1 | 11,054.0 |
Based on these consumption figures, Scope 1 carbon-equivalent emissions in the Group in 2024 came to 6,712.0 t, 7.7% below the previous year’s figure of 7,271.7 t. The switch from natural gas to green district heating at the Austrian site in Mödling was the main contributing factor here. The location-based Scope 2 carbon-equivalent emissions amounted to 16,344.7 t, compared to 16,659.1 t in the previous year. The location-based Scope 2 carbon-equivalent calculations for the respective countries are based on the emission factors of the International Energy Agency (IEA). The market-based Scope 2 carbon-equivalent emissions amounted to 6,909.3 t, compared with 6,715.9 t in the previous year. Despite the 6.3% drop in electricity consumption and the ongoing transition to renewable energy sources for electricity, the weather-related increase in district heating consumption resulted in this rise.
The Group-wide Scope 3 carbon emissions for 2024 were again calculated with external support. Thanks to the availability of new IEA emission factors, the entire life cycle for electricity and gas, including the upstream value chain and grid losses, were included in Scope 3 disclosures for the first time. The integration of ESG data from the newly implemented OneStream consolidation software also offered a more detailed basis for calculations. Scope 3 carbon-equivalent emissions totalled 2,515,850 t in the year under review. The previous year’s figure for 2023 was adjusted to 2,840,040 tonnes of carbon-equivalents due to the inclusion of the life cycle assessment and a more detailed data basis. As in previous years, Scope 3 carbon-equivalent emissions account for the largest part of Koenig & Bauer’s carbon footprint (2024: 99.4%). At over 90%, the main Scope 3 carbon-equivalent emission driver is the downstream side entailing product usage (category 3.11). Accordingly, top priority is being given to lowering the energy consumption of products by improving their energy efficiency, expanding digital services for improved press utilisation and raising customers’ awareness of the importance of transitioning to green electricity. On the upstream side, the inclusion of the carbon footprint in purchasing materials and the more responsible transportation of materials, finished products and service parts offer further levers for reducing Scope 3 carbon emissions. A reduction in carbon emissions can also be achieved on employees’ commutes to work through targeted incentives to use car pools, bicycles or public transport. Another contribution to climate protection can be achieved through sustainable travel management. Restrictions in business travel to a limited number of participants and to important occasions are one of the sustainability levers. In addition, the carbon footprint of every business trip can be improved by means of targeted travel planning including the selection of the method of transport.
The following table provides an overview of the Scope 1, 2 and 3 carbon-equivalent emissions in tonnes and the carbon-equivalent intensity in tonnes per one million euros of revenue: In earlier reports, Scope 1 and Scope 2 carbon-equivalent emissions were only presented for the main sites in Radebeul and Würzburg.
| 2023 | 2024 | |
Carbon-equivalent emissions (in t) | ||
| Scope 1 | 7,271.7 | 6,712.0 |
| Scope 2 – location based | 16,659.1 | 16,344.7 |
| Scope 2 – market based | 6,715.9 | 6,909.3 |
| Scope 3 | 2,840,040.0 | 2,515,850.0 |
| Carbon-equivalent intensity (in t per €1m of evenue) | ||
| Scope 1 | 5.5 | 5.3 |
| Scope 2 – location based | 12.6 | 12.8 |
| Scope 2 – market based | 5.1 | 5.4 |
| Scope 3 | 2,140.5 | 1,974.1 |
Ecological printing technology
We consider sustainability and climate change mitigation to be essential features of our products, particularly due to their service life. We can set ourselves apart from the competition in various markets by offering emission-reduced and resource-saving products and corresponding equipment options and services. Accordingly, we pay attention to energy and resource efficiency in the production process and in the operation of the presses and equipment when developing and designing our products. In addition to minimising carbon, noise, dust and odour emissions in production and for product users, the use of environmentally friendly substrates and consumables in printing, finishing and further processing is a particular priority. When considering the environmental impact of our products, we also take account of the recyclability of the equipment. The main components such as steel and grey cast iron are completely recyclable and make a significant contribution to the circular economy.
We incorporate energy-saving technologies in our products to lower carbon-equivalent emissions in industrial printing. Below we present some of the eco-components and innovative technical solutions developed in recent years to reduce energy consumption, waste and resources such as inks and coatings. Koenig & Bauer offers a range of energy-saving alternatives for the drying process, which is one of the most energy-intensive functions in printing operations. The VariDryBlue drying system that we have developed for sheetfed presses is an energy-efficient solution. To dry water-based emulsion paints, the hot air is passed over the trays twice, obviating the need for heating additional room air. With the new double nozzle design of the VariDryBlue+-IR/hot air dryer, energy consumption can be reduced by up to 35%. HR and LED drier modules for interim and final drying are powerful but more efficient alternatives to conventional UV driers. The VariDry LED UV dryer consumes up to 30% less energy compared to conventional UV dryers. Waste can be saved and makeready times shortened by means of various quality measurement and control systems, inspection systems, preset functions and other equipment options. This allows customers to significantly increase the resource efficiency of their printing operations.
In the metal printing presses built by Koenig & Bauer MetalPrint, the HighEcon dryer, which has won the METPACK Innovation Award, cuts gas costs by up to 70% compared with older models thanks to the energy-efficient KXB burner. With the EcoTNV dryer, the air containing the solvent is fed into the thermal afterburner during drying. In integrated systems such as the HighEcon or EcoTNV dryers, the exhaust air is generally not only cleaned but also produces the heat for the dryer. The solvents in the exhaust air are used to save energy. Thus, if the solvent concentration in the exhaust air is sufficient, gas consumption can be lowered. If gas is replaced by green hydrogen, carbon emissions from the entire production process can be additionally reduced. Koenig & Bauer presented the first positive results of the “Hydrogen-heated dryer” development project in the year under review.
In banknote printing, we have developed a system for reducing the carbon emissions of intaglio presses by lowering power requirements. Intaglio presses require a wiping solution which must be pre-heated before use. On the other hand, some parts must be cooled by means of thermoregulation. In order to conserve and reuse energy, a power-saving unit has been developed to harness the synergistic effects between thermoregulation and the provision of a preheated wiping solution. This solution in combination with compressed air saves approximately 83 kW per hour during operation of the intaglio printing press. Banknote printing presses are predominantly equipped with UV lamps for curing the inks during or at the end of the printing process. As an alternative to this, Koenig & Bauer offers UV-LED systems. This does away with the need for air extraction and lowers energy consumption by roughly 45% per press. In addition, UV LED lamps have a longer service life, do not contain any mercury and do not give off any ozone. Koenig & Bauer offers further innovative solutions for greater resource efficiency in intaglio presses through lower waste and up to 25% lower ink consumption. Ink consumption is optimised by aligning the paper to the length and position of the printing plate. The size of the stencil, which has a direct bearing on ink consumption, can be reduced significantly without impairing the print quality. A further feature is also making it possible to apply ink in the printing process only where it is needed. This reduces ink consumption by a further 25% to up to 50%.
To additionally improve energy and resource efficiency in printing operations and throughout the entire company, Koenig & Bauer offers customers the VisuEnergy X energy management system, which permits end-to-end digitalisation and supports the recording of environmental data and an energy management system in accordance with DIN EN ISO 50001:2018.
A further example of our active environmental policies is water-based and migration-harmless ink for food packaging. This includes participation in successful practical testing of the use of mineral oil-free, low-migration inks that heatset printing companies require for packaging printing in the food sector.
Employee aspects
Koenig & Bauer sees a motivated, experienced, highly qualified, loyal and healthy workforce as a key element of its sustainable success due to its broad range of highly complex, tailor-made presses and services as well as sophisticated digital printing technology. With their expertise and commitment, our employees create sustainable added value for our company. Against the backdrop of demographic change with a significant increase in the need for replacement staff in the coming years together with digitalisation as a major trend, the current challenge is to find suitable junior staff and retain specialists with broad and in-depth expertise in a wide range of professions, especially since the activities in question often require a high degree of flexibility and willingness to travel. In addition to securing the future generation of specialists and managers, the main focus of our human resources activities in the year under review was on the professional and personal development and motivation of our employees. The key priority involved strengthening employer attractiveness and making workplace structures more flexible as part of the adjustments to Group governance. Despite the changed underlying conditions on the labour market, all training positions offered in the Group were filled. In the competition for talent, Koenig & Bauer benefits from its international outlook, its innovative products and digital services, its pronounced value orientation and its long history. A variety of measures, such as the early involvement of young management talent in projects and various training opportunities assist employees in unleashing their full potential. Thanks to the Koenig & Bauer Academy and the Koenig & Bauer Online Campus learning management system, our employees can benefit from an extensive array of training opportunities and learn autonomously and flexibly in line with their needs.
Respectful and responsible interaction with each other and the prevention of all forms of discrimination form part of our corporate culture. We ensure equal opportunities for all employees and seek to provide discrimination-free workplaces and promote inclusiveness regardless of gender, age, disability, religion, origin or sexual orientation. People with restricted mobility also have a place in Koenig & Bauer’s regular workforce. Similarly, employing people with special needs is a major priority for us. Some of the companies at the Würzburg and Radebeul sites exceed the quota for employees with special needs stipulated in the German Social Code. At the foundry company in Würzburg, the severely disabled rate stood at 7.1% at the end of 2024 (2023: 8.3%).
Attractive employer
Koenig & Bauer offers its employees modern working conditions such as flexitime, working time accounts and mobile working, depending on the country and local conditions. Mobile working allows them to perform their work outside the company using mobile devices. The structure is organised in company agreements. In principle, the nature of the tasks, activity and projects determine whether and to what extent mobile working is feasible for employees. Particularly in production and assembly, mobile working is not possible. For employees with children in particular, the option of mobile working offers advantages in reconciling family and work. To strengthen Koenig & Bauer’s profile as an attractive employer, there are various location-specific offers, such as bicycle leasing, public-transport season tickets, a further flexibilisation of working hours, future-oriented apprenticeships and dual Bachelor’s degree programmes in IT and international business. Koenig & Bauer grants employees advances towards season, Germany and 38-euro rail tickets for apprentices in Bavaria as well as for bicycle leasing. There are also other benefits for our employees, such as pay-scale agreements at many Group companies, Group-wide internal personnel development and family-friendly programmes.
Employees are assisted in finding a viable work-life balance by means of special benefits such as flexible working hours, temporary or permanent part-time models, mobile working, childcare services and special leave as well as family leave and sabbaticals. The proportion of part-time employees in the Group widened to 5.0% (previous year: 4.9%). Furthermore, Koenig & Bauer offers various child and holiday care services at its sites. During the 2024 summer holidays, the fifth vacation programme for the children of employees at the Würzburg site was held over two weeks. This holiday programme has been included as a comprehensive concept with two complete childcare weeks in the nationwide company childcare guide as a practical example of one of four organisational models. The holiday care scheme, which was recognised as exemplary throughout Germany by the Federal Ministry of Family Affairs, has also been implemented at the Radebeul site for two years. In addition, Radebeul employees can make use of an existing daycare centre run by an external provider next to the company premises. On the school-free Day of Repentance and Prayer, the traditional Children’s and Youth Day took place at the Würzburg plant. Koenig & Bauer has been a member of the Family and Work Alliance in the Würzburg region since 2006.
In earlier reports, only the number of departures at employees’ own request at the main Group sites in Würzburg and Radebeul were included in the calculation of the staff turnover rate. In 2024, the total number of Group employees who left the company voluntarily or due to retirement, death or operational reasons in the reporting year was included in the calculation of the staff turnover rate. The Group staff turnover rate stood at 7.2% in 2024 (previous year: 6.7%). The average length of service at the main plants in Würzburg and Radebeul was 18.9 years in the year under review (previous year: 18.6 years).
Diversity
Koenig & Bauer attaches particular importance to the diversity of its workforce and is continuing to work on further enhancements in terms of gender, internationality and ethnicity, age, religion and world view, experience and qualifications under its diversity policy. We want to harness the potential arising from heterogeneous teams in the interests of sustained corporate development. In terms of internationality, we have already achieved a high degree of diversity thanks to our numerous global locations with employees of different nationalities. The Würzburg site was recognised by the University of Konstanz as a “committed training company in the field of integration”. In terms of age structure, the following picture emerges in the Group: of the total employees in the Group, 27.9% are under 30 years of age, 39.9% are between 30 and 50 years of age and 32.2% are over 50 years of age (previous year: 18.7% under 30 years of age; 42.2% between 30 and 50 years of age; 39.1% over 50 years of age). As with many other mechanical engineering companies, the proportion of women in the Group is still relatively small at 14.7% (previous year: 15.0%) compared with other sectors. Various activities are being undertaken to further increase the proportion of female employees in our manufacturing company, including a targeted approach to women during girls’ day, career fairs, internships and school visits. We also want to increase the proportion of women in management positions with special training and female mentoring programmes. In a programme carried out with the Bavarian Metalworkers’ Association (bayme), we are encouraging skilled female employees with development potential to take on management tasks. At the end of 2024, female representation at the first and second management levels below the Management Board at the holding company Koenig & Bauer AG stood at 33.3% and 16.1%, respectively. While female representation at the first management level below the Management Board remained unchanged over the previous year, it was higher at the second management level (previous year: 13.8%).
Recruitment of and professional training for the next generation of skilled workers
In-house training is intended to meet the demand for qualified specialists in development, design, production, assembly, commissioning, service and commercial areas. The dual vocational training model can look back on a long tradition at Koenig & Bauer. The company’s own state-recognised vocational training centre in Würzburg numbers among the climate schools in Bavaria and trains specialists by closely interlinking theory and practice. In the 156th year of its existence, it continues to enable modern learning and working. In addition to a well-equipped training workshop with various machine tools, all trainees have access to modern resources such as tablets. Via an internal website, they can use the tablet to access interactive operating instructions, e-learning, training documents, video tutorials and technical drawings. By scanning the QR codes, which are displayed on all machines, devices and containers in the vocational training centre, the trainees can view safety instructions and additional operation and handling information directly on their tablet. Apprentices gain a deep insight into the company’s processes by working in different departments. Additional programmes such as exchange trips, seminars or stays abroad promote young people’s professional skills as well as their personal development.
The next generation of skilled workers is being recruited from all types of schools, while opportunities are also deliberately being given to those with lower grades. At career, vocational and job fairs as well as internal events such as the career information day and the information week with an open training day, we are committed, with the active support of our current apprentices, to arousing more people’s interest in the prospect of working at Koenig & Bauer. Via close co-operation with regional schools, various school events such as career orientation days provide an opportunity to discover more about training opportunities and careers at Koenig & Bauer. In addition to these tools, we are using our website and social media to recruit young talent. In this way, school-leavers can gain insight into what a traineeship with the company entails together with the training syllabus and methods. In addition to the various opportunities for learning more about apprenticeships at Koenig & Bauer, we offer technically or commercially oriented work placements for school students for early career orientation for when they leave school. All internships are structured in such a way that the school students can try things out for themselves and acquaint themselves with the apprenticeship professions at the company. A number of undergraduates are completing their theses at Koenig & Bauer or attending internships or practical semesters at Koenig & Bauer. In addition, the company offers placements for undergraduates to acquaint them with the world of work at Koenig & Bauer.
As of 31 December 2024, the number of technical and commercial apprentices, including interns, stood at 449, significantly up on the previous year’s figure of 400. The Group-wide training ratio rose accordingly to 8.0% (2023: 7.0%). Mechatronics technicians, industrial mechanics and IT specialists are the largest occupational groups among the apprentices. The training figures include dual students who complete their practical phases at the Group locations in addition to attending university. Koenig & Bauer apprentices at the various Group locations regularly occupy top positions in the final examinations held by the Chamber of Commerce and Industry. They are a good indicator of the acknowledged high quality of the Group-wide training centres. Of the numerous trainees who completed their training in 2024 with a top grade, one mechatronics technician was named the best in the state of Saxony and one industrial clerk the best in the Dresden administrative district. Five trainees received the “Top Apprentice in the Saxon Metal and Electrical Industry” prize of honour in the “Industrial Electrical Trades” and “Industrial Metal Trades” categories awarded by the Sachsenmetall employers’ association together with the Johann Andreas Schubert Foundation. This was the 24th time that the Radebeul plant was among the companies honoured with this recognition – more than any other member company. Upon successful completion of their apprenticeships, the future specialists face good career prospects.
Systematic personnel development
Two years after its foundation, the Koenig & Bauer Academy (hereinafter referred to as the Academy) is firmly established within the Group as a provider of Group-wide people development activities. The Group strategy and the personnel and skills development guidelines derived from it form the basis for the programme offered by the globally oriented Academy. At the Koenig & Bauer stand at drupa 2024, the Academy presented its extensive training programme with the latest training courses and its learning and development strategy to visitors from around the world.
In line with the Group’s objectives, the Academy concentrates in particular on systematic talent management, target group-specific personnel development programmes, upskilling and reskilling as well as individual personal development. Organisational development in the form of change and transformation support is increasingly becoming a priority in the Academy’s programme. Our learning culture and efforts to ensure equal treatment of our employees, to promote diversity and to provide support for this are reflected in the wide range of programmes on offer.
Our employees at all consolidated Group companies, including the global sales and service companies, can make use of the Academy programme. From technical/product-related and digital skills to interdisciplinary soft skills and leadership and management competences, interested parties can find solid advice and relevant learning and development opportunities. The Academy programme is accessible via our Koenig & Bauer Online Campus learning management platform (hereinafter referred to as the Campus). All training management services are handled via this system, including in particular the allocation of learning elements, the management of development programmes and the rollout of personnel development tools such as annual employee appraisals, coaching and mentoring. There are transparent processes available for users utilising personnel development tools and all optional and mandatory qualification elements.
Our approach to practice-oriented personnel development is particularly evident in our target group-specific multi-part programmes, which are carried out regularly and in some cases with external trainers and external certification. The Customer Value Selling Programme with certification as a Trusted Advisor was rolled out for sales employees in the year under review and attended by around 300 sales experts worldwide in the run-up to the drupa trade fair. A sales programme for sales employees based on this is currently being developed. Looking forward, STEP (Special Technical Experts Programme), which is equivalent to JUMP (Junior Management Programme), is being developed for the target group of technical experts. The Campus of Experts lecture series is organised by Koenig & Bauer experts from a wide range of fields. In the year under review, 400 employees from across the Group attended the wide range of lectures.
Thanks to worldwide collaboration within the Academy network, experts from all disciplines help to shape and develop the Academy’s portfolio and provide employees with new and important know-how. All employees have access to the online catalogue via a personal profile, where they can view the training courses available to them. In addition to traditional face-to-face sessions, the training and development programme includes live online training as well as a constantly growing library of E-learning formats. The extensive range of training offered by the Academy is communicated via newsletters, the Academy magazine, its own website as well as at events, training courses and in personal discussions.
Mandatory training on matters such as compliance and export control is assigned to employees directly in their individual training plans at the campus to ensure attendance. Every employee can apply for voluntary courses from the online catalogue, which can be approved by managers directly in the system. The system documents each employee’s education history and sends reminders of upcoming training sessions. In addition, managers are asked to register employees for training programmes. In addition to 2,400 face-to-face training sessions (2023: 2,300), 28,320 e-learning sessions, including the 520 self-learning online courses, were held in the year under review (2023: 20,700). Accounting for 9,870 online training courses (2023: 7,750), compliance training is a very important aspect of e-learning. In addition, there is a wide range of technical and other training and further education courses as well as specialist training such as forklift driving licences, first aid courses etc. On top of this, we support in-service further training of our employees, allowing them to qualify as technicians, specialists and business economists, and, if desired, also offer them master training.
We have implemented systematic talent management step by step to enable management positions to be filled internally. Employee motivation through appropriate prospects, employee loyalty and, last but not least, heightened employer attractiveness are the key drivers here. Development assessments and calibrations, in which managers and junior staff undergo a differentiated potential analysis process, are a central element of talent management. In a subsequent internal calibration phase, these results are supplemented with assessments by immediate supervisors, while management and individual development plans with further training measures are drawn up. Vacancies are filled from this group of young talents in regular coordination rounds for each business unit with Management Board members and managing directors.
Twelve employees took part in JUMP for junior managers in the year under review. The number of participants in the middle management special leadership programme stood at 22 in 2024. Further management training courses on topics such as addiction prevention, labour law, occupational medicine and company integration management were attended by a total of 160 managers. Encouraging young women to take on management responsibility and assume leadership roles is very important to us and is being intensified, including through mentoring and coaching. New employees complete a digital onboarding process, which helps them to find their way around the company and familiarises them with its corporate culture. In the year under review, 100 new employees took part in the onboarding process, which included a factory tour, making their first networking contacts here.
The Academy and the Campus have implemented the framework and tools for in-company personnel development and training in the Group and these are being increasingly used and continuously developed. All in all, the personnel development measures and initiatives outlined above promote a global leadership and learning culture, which in turn is a decisive success factor for transformation.
Health and safety
The health and safety standards at the production plants in Würzburg, Radebeul and Dobruška are certified in accordance with DIN ISO 45001:2018. Various measures are being taken to achieve further improvements in safety and ergonomics. Regular checks and consultations are held to monitor compliance with health and safety regulations and to make recommendations for optimising work processes. By avoiding non-ergonomic movements and heavy lifting, it is possible to minimise illness and accidents. The hazard assessments are updated regularly. Regular instruction and training seek to raise employees’ awareness of any hazards that may arise.
9.6 accidents per 1 million hours worked (previous year: 10.5) with lost working time of one day or more for the core workforce were registered in the year under review at Group workplaces. In earlier reports, the accident frequency rate only included the main plants in Radebeul and Würzburg. We performed extensive analyses of these incidents as a basis for defining preventive measures and providing training for reducing workplace accidents compared to the previous year. At the same time, the monthly report on accident frequency rates by business unit and department facilitates the development of targeted responses. Potential hazards are addressed and highlighted in special monthly campaigns.
Workplace health promotion and prevention as well as comprehensive health management also enjoy high priority at Koenig & Bauer. The various programmes are managed and implemented by human resources management and by the Koenig & Bauer in-company health insurance fund (Koenig & Bauer BKK), which is organised as an autonomous public-law entity. As part of company integration management, HR management offers employees at various business units who have been on sick leave for more than 30 days in the past year a confidential meeting via a personal invitation to discuss possible measures to overcome or prevent incapacity and maintain their performance at the workplace. A health team was established at the Radebeul site under the motto “Promoting health together”. Top priority is being given to workplace ergonomics, the prevention of musculoskeletal disorders and regeneration management. In the year under review, the health team expanded the programme to include hikes.
In addition to the diverse activities and offers including health courses and vaccinations, counselling and training are a further priority with which health skills are taught, while employees are encouraged to work in a health-conscious and ergonomic manner and to avoid stress. Support is also available from addiction officers for all questions relating to addictive substances and alcohol consumption. Courses were held for the apprentices under a health promotion programme tailored to their needs to raise awareness of such concerns as hearing loss caused by high noise levels, addiction prevention and the avoidance of muscle/skeletal diseases. To strengthen the mental health of apprentices and teachers, the analogue/digital You!Mind service is offered by the Koenig & Bauer BKK health insurance fund. The active weeks in selected health resorts are a special type of preventive health promotion with individual programmes to maintain or restore performance and well-being. Hearing tests, vein screenings with evaluation and on-site counselling as well as resilience webinars are among the other services on offer. Regardless of where they live, employees suffering from mental illnesses receive a qualified initial diagnosis within 14 days through the in-company health insurance fund’s ProPsych programme. If the initial diagnosis indicates the need for a medical response, the employee concerned receives psychotherapeutic treatment within a further 14 days. Special behavioural therapy for sustainable weight loss in the event of obesity is also offered under this programme. As well as this, a workshop on dealing with mentally stressed employees was organised for managers at the Industrial production company in the reporting year. The aim of the “BGM-innovativ” programme held at the Würzburg and Radebeul sites is to provide coordinated care for at-risk and ill employees suffering from musculoskeletal disorders in order to avert illness or to prevent it from becoming chronic, to shorten the duration of the illness and absences and to maintain working capacity permanently. In addition to various sports such as functional training, full-body training with CrossFit and high-intensity interval training, yoga classes are included in the Koenig & Bauer BKK programme, which take place in hybrid form, both at the plant and online. Children of the employees insured with the Koenig & Bauer BKK in-company health insurance fund receive subsidies for swimming lessons. Special projects are organised to provide regular information on the importance of preventive care for the most common types of cancer, such as skin, colon and lung cancer. In addition to webinars and sticker campaigns, lung and skin screenings are offered. Flyers were distributed on the nationwide Dental Health Day together with a give-away. Support for company sports festivals, the participation of employees in company runs and other team events promote health and strengthen team spirit.
Social aspects
Koenig & Bauer attaches great importance to social responsibility and has a long tradition of doing so. Even before social security was introduced in Germany, the company had already established the predecessor of our in-company health insurance fund in 1855. The disability, widow’s and orphan’s fund founded in 1873 still exists today. As part of our commitment to the community, we are currently promoting social and cultural projects as well as various initiatives to preserve and protect the environment.
Social commitment of Koenig & Bauer and its employees
At Koenig & Bauer, social and cultural commitment includes sponsoring and donation activities. The Group sponsoring and donations policy governs its basic approach to these matters and defines a consistent process throughout the Group, including approval rules.
In addition to annual support for the Africa Festival in Würzburg, Koenig & Bauer as the main sponsor provides financial resources for social projects. Koenig & Bauer MetalPrint organises an annual fundraising campaign in the form of an employee raffle, with the proceeds going to a children’s and young people’s hospice in Stuttgart, with the company doubling the amount donated. In addition to this social commitment, we also fund projects aimed at promoting climate protection and encouraging the sustainable use of resources. Sponsored by Koenig & Bauer, the Print & Media Award for the environmentally oriented company of the year recognises printing companies’ ecological commitment. The Green Dot Award initiated by Koenig & Bauer honours international leaders from the global printing industry who have made outstanding innovative contributions to sustainable printing with their special ideas and commitment. The Green Dot winner receives €10,000 in prize money, while a further €10,000 is donated to a sustainability project of their choice. After the first one in 2022, the next Green Dot Award was presented at the drupa trade fair in Düsseldorf in May 2024. Richard Lim, COO of the Hung Hing Printing Group in Hong Kong, was the 2024 award winner. As part of its “Decarbonisation Journey”, the Hung Hing Printing Group, one of the leading providers of printing solutions in Asia, is dedicated to generating its own electricity from PV systems and is committed to electrification, sustainable substrates and efficient waste management.
Managers and employees make a contribution to the community through their voluntary activities at the Chambers of Industry and Commerce and the Chambers of Crafts, as honorary judges at the labour and social courts, in emergency-assistance organisations such as the Federal Agency for Technical Relief, the fire brigade and the rescue service, as well as in city and municipal councils. In individual cases, employees are released from work by Koenig & Bauer so that they can pursue these voluntary activities. In addition to the above-average training rate by industry standards, our social commitment is also reflected in the initial measures that were introduced in the year under review to make training courses at the Koenig & Bauer Academy available to external companies. In the long term, this will help to expand the Academy’s activities outside the Group and additionally strengthen the partnership with external parties. At the Würzburg plant, employees can purchase a wide range of used cabinets, desks, various metal parts and even monitors, depending on availability. In addition to conserving resources and the environment through the private re-use of these items, the employees make a donation to support the company’s widows and orphans fund in this way.
Activities against racism and discrimination
As a global printing press manufacturer, Koenig & Bauer has always stood for cosmopolitanism and tolerance. Our core workforce includes people who have fled their home countries for political or religious reasons. Some have completed their vocational training at Koenig & Bauer, others have directly started their careers here. At our Radebeul site, we support “Wirtschaft für ein weltoffenes Sachsen” (“Business for a Cosmopolitan Saxony”) by taking specific measures to assist and promote the integration of newcomers and immigrants in the local economy.
High product quality for greater on-site and process safety in printing operations
Koenig & Bauer attaches great importance to the quality of its products and services. Reflecting this, the quality management system aims at achieving ongoing compliance with the highest quality standards in the production and assembly of the company’s bespoke, innovative and complex products. The quality management systems at the production plants in Radebeul, Würzburg and Dobruška, at the Sheetfed business unit in Radebeul, at the Security business unit at the three sites in Würzburg, Lausanne and Mödling and at the Coding business unit in Veitshöchheim are certified in accordance with DIN EN ISO 9001:2015. Product development focuses on work and process safety, reliability and user-friendliness.
Commitment to human rights
Integrity in our business activities in our role as an employer and as a supplier and recipient of products and services as well as respect for human rights are components of our corporate policies. These principles were summarised in a Group-wide Code of Conduct in 2011. One of the guiding principles of our corporate policy is the United Nations Framework on Business and Human Rights (“protect, respect and remedy”).
Koenig & Bauer expects its suppliers to comply with the company’s corporate principles in addition to observing all applicable laws and regulations as well as international and industry standards. With the incorporation of the human rights principles in the Koenig & Bauer framework contracts and terms and conditions of purchase as well as the systematic observance of these requirements in the course of business activities, business partners are encouraged to acknowledge and respect human rights in the same way as the company. By signing the purchasing conditions, suppliers particularly undertake to refrain from using child labour and forced labour and to avoid all forms of discrimination. The purchasing conditions impose on external business partners a duty to respect employee rights and to observe labour law. The code of conduct for suppliers, which is required in addition to the terms and conditions of purchase, details the requirements set out in the contract documents. The code of conduct for suppliers also stipulates the observance of statutory and contractual quality and safety standards as well as environmental standards particularly in connection with the use and processing of hazardous substances. In the year under review, we revised our code of conduct for suppliers to ensure that our suppliers, like Koenig & Bauer itself, are committed to a more sustainable economy, to encourage the relevant persons to report possible breaches of regulations and to protect whistleblowers from any reprisals.
The code of conduct also imposes on suppliers a duty to provide information on request concerning the observance of human rights, the ban on child labour, minimum wages, business integrity, health and safety and sustainability, and to allow audits to be carried out. We have installed different processes to verify our suppliers’ compliance with the required principles initially and on an ongoing basis. A supplier qualification process must be completed whenever a supplier relationship is approved for the first time or re-established. As part of the onboarding process, new suppliers must sign the code of conduct or enter into an equivalent contractual agreement with Koenig & Bauer. The initial screening of potential suppliers during the selection process includes at least one self-assessment in the form of a questionnaire, in which they must also provide information on their practices for ensuring compliance with human rights and environmental standards. Further measures are initiated on the basis of the results of the self-assessment and an internal risk assessment. These can include a request for certificates, evidence of the avoidance of human rights risks or environmental risks, audit procedures or an on-site inspection. As part of the ongoing review of the partnership in the form of supplier audits, a sample is taken from existing suppliers.
The revised code of conduct incorporates the elements of the Supply Chain Due Diligence Act aimed at preventing violations of human rights in supply chains. These include aspects such as fair competition by preventing corruption, fraud and cartels, occupational safety and health, environmental protection and equal treatment and anti-discrimination. We ensure compliance with these principles by means of guidelines, processes, controls, training, standard contracts and other monitoring activities. These goals are supported by the concentrated sourcing of goods and services from the DACH region.
On the basis of the statutory obligations under the Supply Chain Due Diligence Act, we have developed a model for analysing and addressing the relevant risks have documented it in a central instruction. The policy statement on the implementation of the requirements under the Supply Chain Due Diligence Act is published in the Compliance section of the corporate website. Every year, we carry out a risk assessment according to a defined process. The Central Purchasing department, which is responsible for all purchasing in the Group and is located in the holding company, analyses the data of all suppliers and, in a preliminary step, lists all countries from which goods or services above a threshold of €5,000 have been purchased directly across the Group in the last 24 months. The Compliance department calculates a risk score for each direct source country on the basis of twelve publicly accessible indices published by NGOs. To achieve a systematic scaling of the country-specific risk potential, a risk score of between one and three is assigned to each country for all of the twelve indices in relation to the legal interests to be protected. A risk score of one indicates a low country risk, two a medium country risk and three a high country risk. If no index-specific value was available for a country, a risk score of three was applied as the basis for further calculation. After all twelve index-specific country risks have been determined, a risk score is determined for each direct supplier country. This indicates the extent to which human rights and environmental risks may occur along the supply chain at the country level.
After all country-specific risk scores have been determined, a global average risk score is calculated. This score, which is recalculated annually, forms the basis for further risk analysis at the supplier level. All suppliers from critical countries whose risk score is up to 25% above the average international score undergo a separate audit. After an analysis of the results and approval of the risk assessment, a meeting of the committee consisting of representatives from Central Purchasing, Corporate Responsibility, Compliance and Quality Management as well as the Human Rights Officer is held to identify the suppliers from the critical countries to be audited, as well as a plan of action with an audit roadmap and deadlines for high-risk suppliers. The progress reports containing the results of the evaluation and measures implemented are discussed at further meetings of the Audit Committee. Depending on the risks identified, the risk-minimisation action plan can include a qualified self-assessment with internationally recognised documentary evidence or certificates, an on-site audit or an unscheduled audit in the event of any suspicious activity reported. Furthermore, the Audit Committee determines the date by which the suppliers that are classified as risk-exposed must be audited. Measures to reduce or eliminate identified risks may include further awareness-raising activities and a declaration of undertaking by suppliers to respect human rights and the environment, closer monitoring of suppliers, agreement with suppliers on concrete action plans to reduce risks and, in cases in which there is a persistent risk to the protected interests, a reduction in or the discontinuation of the relationship with the supplier in question. The implementation of the defined measures and their effectiveness are monitored by the Human Rights Officer.
The risk analysis also includes information from employees and third parties on potential violations, dangers or grievances, the failure of business partners to comply with human rights and environmental protection requirements, which can also be reported anonymously via the whistleblower system. Based on a written report received in 2023, we carried out an event-driven risk analysis in accordance with Section 5 (4) sentence 1 of the Supply Chain Due Diligence Act with a survey and other test procedures. However, this did not confirm the existence of a suspected potential violation of due diligence obligations to prevent human rights violations in supply chains.
Anti-corruption and anti-bribery
Corruption and inadequate measures to combat it deprive the economies concerned of billions of euros every year and have considerable and far-reaching consequences for governments, citizens and the economic and social development of civil societies. International studies have shown that the impact of ongoing corruption not only leads to lower prosperity, but also has a significant adverse impact on respect for human rights and protection of the environment. Corrupt societies generally have a lower level of participation and labour rights, access to care facilities and systems, equal rights, equal access to education, work and equal pay and non-discriminatory lifestyles. In addition, necessary measures or internationally recognised standards or agreements to protect the environment, resources or biodiversity are often undermined as a result of corruption. It is universally acknowledged that the fight against corruption is a joint task for all stakeholders, particularly politicians, international organisations, civil society, but especially all economic players and therefore companies.
Due to the impact of corruption on human rights and the environment, the continued fight against and prevention of corruption forms an intrinsic part of Koenig & Bauer’s corporate strategy. We attach key importance to responsible, sustainable and long-term value creation. We regard integrity and compliance with the law in business transactions as indispensable and pursue a zero-tolerance doctrine in this respect. For this reason, Koenig & Bauer’s Code of Conduct, which applies to all subsidiaries, explicitly states that there is no trade-off between the company’s commercial interests and its duty to follow the law, and that we would rather forego an order or the achievement of internal objectives than violate any laws and regulations.
Compliance management system – control and monitoring
The Group-wide compliance management system (CMS) creates the basis for ensuring that business practices satisfy the highest compliance and integrity standards. Since 2023, all relevant German subsidiaries of Koenig & Bauer have been certified in accordance with ISO 37001 (anti-corruption management), with Koenig & Bauer Banknote Solutions SA (Lausanne, Switzerland) added in 2024 as the first foreign subsidiary. The content and activities of the compliance organisation as well as internal processes and controls are continuously reviewed and enhanced to address any relevant organisational changes or changes to the legal situation. A compliance plan is agreed with the Management Board and the Audit Committee of the Supervisory Board at the beginning of the year in order to monitor the functionality and further development of the CMS. To this end, the compliance plan also defines measurable objectives (KPIs) for the CMS. The following KPIs are currently defined:
- Ratio of compliance training completed at the Koenig & Bauer Campus
- Ratio of compliance onboarding for new employees as part of the Welcome Days
- Number of compliance reviews carried out at Koenig & Bauer subsidiaries
- Percentage coverage of acceptance of Koenig & Bauer’s business principles by relevant suppliers
- Rate of signed compliance declarations by relevant employees
- Decisions on the modification of KPIs or the inclusion of additional ones are made during annual compliance planning.
The CMS is designed to prevent violations of laws, standards or internal policies. A regular compliance risk analysis forms the basis for the organisation and processes. More detailed stakeholder and risk analyses are carried out to intensify the analysis of special risks, such as corruption prevention and money laundering. In addition to monitoring changes in the law and reported compliance risks, one component of the risk assessment entails the continuous sharing of information with those responsible for the subject areas, processes and controls of the Koenig Bauer Group companies defined as essential in the Group’s Corporate Compliance policy. For this purpose, a compliance team has been set up and is composed of representatives from information technology, human resources, accounting, taxes, data protection as well as the local compliance officers. In 2021, all subsidiaries additionally submitted for the first time a standardised report on their compliance situation as part of the fixed agenda of the meetings of the relevant supervisory bodies (e.g. boards, shareholder assemblies, supervisory boards, governance bodies).
Policies and processes
Guidelines have been issued and the necessary processes established on the basis of the risk analysis results to ensure compliance and integrity in all business activities. Any changes that are identified in the risk situation or requirements are addressed by duly modifying the internal guidelines. The Code of Conduct rolled out across the Group, the rules on the compliance organisation and the relevant Group guidelines are available to all employees in their most recent version in the guidelines portal on the Koenig & Bauer intranet.
Certifications
The CMS attaches crucial importance to combating corruption and bribery. For this reason, Koenig & Bauer AG and all relevant German subsidiaries have been certified in accordance with ISO 37001 (anti-corruption management). Companies were defined as relevant if they engage in sales, service and procurement activities. This does not apply to companies that perform solely production or administrative activities, e.g. holding companies or management companies. In addition to the extended accreditation with the Banknote Ethics Initiative (BnEI) in the year under review, Swiss-based Koenig & Bauer Banknote Solutions SA was certified in accordance with ISO 37001 (anti-corruption management). The ongoing certification efforts also reflect Koenig & Bauer’s clear commitment to promoting fair competition.
Training
The defined compliance and integrity standards can only be fully effective if employees are aware of and observe them. For this purpose, ten online training sessions on the compliance issues identified as important on the basis of the risk analysis and the code of conduct are currently available throughout the Group. Where necessary, which was most recently the case in 2023, the content of the training courses is revised and restructured to reflect the current legal situation and company organisation on the one hand and to incorporate the knowledge held by employees after completing the first training cycles on the other. Available in several languages, they are mandatory for every new employee. The Koenig & Bauer Campus training management system, which is based on SAP SuccessFactors, automatically ensures that training is carried out within the cycles determined according to the risk criteria of the employee’s specific position. Compliance with this requirement is monitored through regular reminders and escalation processes. Following the initial allocation of online training via the Koenig & Bauer Campus at the end of 2017, a total of over 6,000 Koenig & Bauer employees completed compliance training directly related to anti-corruption measures. In the training cycle rolled out for 2024, the participation rate for anti-corruption management training reached almost 74%. The proportion of Koenig & Bauer employees who have received anti-corruption training has thus increased to almost 94%. The Koenig & Bauer Campus has since been rolled out across all 50 relevant subsidiaries, meaning that almost all employees in Europe, Asia, North and South America can attend compliance training via the Koenig & Bauer Campus. Companies were defined as non-relevant if they have no independent operating business activities or are made up exclusively of personnel who also have parallel employment relationships in consolidated companies, e.g. in holding or management companies. In addition, face-to-face training sessions are organised as part of the onboarding events for new employees and on-site visits by compliance officers to subsidiaries as required.
Monitoring and whistleblower system
The preventive CMS measures are complemented by a regular review of their effectiveness to identify potential for improvement. In addition to tracking the agreed KPIs for the CMS, internal and external compliance assessments in particular are carried out periodically at Koenig & Bauer AG and its subsidiaries for this purpose. In addition to the companies included in the scope of ISO 37001, this concerned the Koenig & Bauer companies in China (business unit coding) as well as Mexico and Argentina (business unit banknote solutions).
The internal whistleblower system, which had been in place since 2017, was replaced in 2022 by a new online platform that will continue to ensure that potential compliance violations can be reported by employees anonymously and – in contrast to the original system – additionally also by third parties. The whistleblowing system also includes a case management function, thereby ensuring full documentation of the actions taken to follow up on the tips received. As well as this, it contains a feedback channel to the whistleblower notifying him or her of the receipt of the report and the status and outcome of the inquiries. Moreover, the system allows for requests for further information or evidence to be made even if the whistleblower wishes to remain anonymous. Under the Group policy, all suspicions are followed up consistently and, if necessary, disciplinary or legal action taken. The platform and the processes for the internal investigation of reports were expanded in both 2023 and 2024 to fully comply with the German Whistleblower Protection Act and the transposition laws under the EU Whistleblower Protection Directive (Directive (EU) 2019/1937) enacted in the respective EU member states. The reporting channel is communicated through training courses, the intranet, notices and on Koenig & Bauer’s compliance website. The external reporting centre set up in Germany at the Federal Cartel Office was included in communications to employees. Several reports received in 2024 from various subsidiaries prove that the platform is known and accepted. The systematic follow-up applies equally to reports from the media or authorities regarding potential legal violations by Koenig & Bauer companies. In such cases, cooperation is sought to clarify the circumstances. Koenig & Bauer complies with all reporting or cooperation duties.
Collective actions and commitment to fighting corruption
Koenig & Bauer is also committed to fighting corruption and encouraging compliance beyond its own business activities. Since its foundation in 2013, the Banknote Ethics Initiative (BnEI) has established a clear code to prevent and combat corruption and anti-trust violations in the field of banknote printing and trading. The principles espoused are not only recognised among the members of the BnEI but are also adopted by a significant proportion of central banks and banknote printers worldwide. As a founding member of the BnEI, Koenig & Bauer Banknote Solutions has agreed to be bound by the rules of conduct and transparency, compliance with which is verified under the accreditation to be renewed every three years on the basis of an audit programme developed by the BnEI. The accreditation audit was held at the end of 2023 as scheduled, with accreditation duly received in February 2024.
Via the KBA-NotaSys Integrity Fund, which was founded in 2017, Koenig & Bauer financed international projects to enhance compliance processes and culture. The fund supported a total of 45 projects initiated by universities, associations and institutions in Europe, South America and Africa, including Transparency International, the German Institute for Compliance (DICO), the German Institute for Efficiency Testing (DIEP) and various Swiss and German universities. A total amount of €5m was allocated. The Integrity Fund was formally closed on 31 December 2022. However, projects that have already been awarded continued until the contractually agreed deadline in 2024. The Integrity Europe Conference, which was partly financed by the fund, was repeated after 2023 in November 2024. It establishes a format that did not yet exist in Switzerland before 2023, enabling an interdisciplinary exchange of international representatives from academia, business, advocacy practice and the authorities.
Further details of the compliance management system can be found in the compliance section of Koenig & Bauer’s website.
The ongoing analysis of possible compliance risks is a decisive prerequisite for the company’s ability to continue meeting the standards of rule-based business conduct and integrity defined in the code of conduct and the Group guidelines. The analyses and assessments carried out in the individual divisions in 2024 and the findings from internal investigations did not reveal any new compliance risks. Relevant processes and controls were adapted and expanded to address the shortcomings identified and workarounds as well as the changed legal requirements.
There are no reasons to assume that Koenig & Bauer’s CMS in its current form is not appropriate and effective for the Group’s risk situation.
Disclosures on the EU taxonomy
The EU Taxonomy Regulation is an integral part of the European Commission’s Action Plan on the Allocation of Capital Flows to Sustainable Economic Activities. As a classification system for ecologically sustainable economic activities, the EU taxonomy rules mark a significant step towards achieving the EU objective of climate neutrality by 2050. The taxonomy focuses on six objectives: climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control and protection and restoration of biodiversity and ecosystems.
The following information is based on the Taxonomy Regulation (EU) 2020/852. We have also adopted the delegated act on the first two environmental objectives of climate change mitigation and adaptation (Commission Delegated Regulation (EU) 2021/2139 on the technical screening criteria pursuant to Articles 10 and 11 of the Taxonomy Regulation, hereinafter referred to as the Climate Law Act), the delegated act on the reporting obligations under Article 8 of the Taxonomy Regulation (Commission Delegated Regulation (EU) 2021/2178) and the minimum protection under Article 18 of the Taxonomy Regulation. Our comments are also based on the additions made by Commission Delegated Regulations (EU) 2023/2486 and (EU) 2023/2485, including with regard to the inclusion of the four non-climate-related environmental objectives in the reporting obligations and new economic activities in the Climate Law Act. In accordance with the amendments to the delegated act on Article 8 of the EU Taxonomy Regulation, a phase-in period had been available in 2023 for environmental objectives 3-6 and for newly added activities to the European Climate Law. Accordingly, only disclosures on taxonomy eligibility were required. However, no taxonomy-eligible revenue, CapEx and OpEx were reported for environmental targets 3-6 and for the activities newly included in the Climate Law. The reporting obligation also takes into account Commission Delegated Regulation (EU) 2022/1214 amending Delegated Regulation (EU) 2021/2139 with regard to economic activities in certain energy sectors and Delegated Regulation (EU) 2021/2178 with regard to specific disclosure requirements for these economic activities. Koenig & Bauer does not engage in any business activities in connection with nuclear energy and fossil gas listed in the annexes to Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022. The first table of the reporting forms shown in Annex III for 2024 is presented at the end of the section entitled “Disclosures on the EU taxonomy”.
As in previous years, we have analysed the economic activities of categories 3.6 with regard to the first environmental objective of climate change mitigation (CCM). “Production of other low-carbon technologies”, 7.3 “Installation, maintenance and repair of energy-efficient appliances” and 7.6 “Installation, maintenance and repair of renewable energy technologies” were determined with regard to their potential taxonomy eligibility and corresponding contributions identified. With regard to both the second environmental objective concerning adaptation to climate change and the four non-climate-related environmental objectives (protection of water and marine resources, strengthening the circular economy, reducing pollution and protecting biodiversity), the analyses carried out did not identify any potentially taxonomy-eligible economic activities with a significant contribution to these five environmental objectives. There was also no relevant capital expenditure in the year under review with regard to the economic activity “1.2. Production of electrical and electronic equipment” in the context of the EU environmental objective of transitioning to a circular economy. Under the disclosure obligations, the shares of taxonomy-eligible and non-taxonomy-eligible and taxonomy-aligned and non-taxonomy-aligned economic activities in 2024 in total revenue, capital expenditure and operating expenditure from the Group’s activities are also disclosed with regard to the environmental objective of climate change mitigation. Based on the analysis performed, the revenue, capital expenditure and operating expenditure could be clearly allocated to a taxonomy-eligible economic activity. In order to avoid duplication, a taxonomy-eligible activity was only disclosed if it was not already included under another activity.
Taxonomy-eligible revenue
The taxonomy-eligible share of Group revenue is defined as the portion of net revenue in 2024 that comes from products in connection with taxonomy-eligible economic activities (numerator), divided by consolidated net revenue in 2024 (denominator). Our Group net revenue of €1,274.4m is presented in the consolidated financial statements on page 65 of the 2024 annual report in the line Revenue. Further details on our accounting policies for Group revenue can be found on pages 80 et seq. of the 2024 annual report.
Based on the classification of our economic activities according to NACE codes 28.29 and 28.99, we applied the requirements of CCM 3.6 “Production of other low-carbon technologies” as a basis for identifying taxonomy-eligible revenues. With regard to the environmental objective of climate change mitigation, we have classified revenue from products or product groups as taxonomy-eligible if the printing presses and systems also aim to significantly reduce carbon emissions for our customers in the printing and finishing industry due to the technology in use and these do not already fall under Sections 3.1 to 3.5 of Annex I of the Climate Action Act. Under environmental concerns in the chapter entitled “Ecological printing technology”, we present in detail the technologies or printing presses developed to reduce carbon emissions in the printing process. These include VariDryBlue drying for sheetfed offset presses, the HighEcon and EcoTNV dryers for metal decorating presses, the PowerSave unit, LED technology for curing inks in the press and targeted adjustment of the stencil size for banknote presses. We then aggregated the revenue determined in the accounting departments of the Group or the respective business units for each product or product group classified as taxonomy-eligible. Revenue of €460.8m (2023: €365.3m) was generated in 2024 from press technology for banknote printing, sheetfed offset presses equipped with VariDryBlue drying technology and metal printing systems and components delivered with TNV technology.
Taxonomy-aligned revenue
To identify taxonomy-aligned revenue, we first analysed the technologies classified as taxonomy-eligible, or the corresponding products and product groups, to determine whether they contribute to a significant saving of greenhouse gas emissions during use of the product over the entire lifecycle of the press compared to the best-performing reference technology available on the market. In doing so, we consistently followed the relevant EU regulations for CCM 3.6 “Production of other low-carbon technologies” with a focus on reducing greenhouse gas emissions in the user industries and applied internationally recognised standards for calculation. The life cycle greenhouse gas emissions for the most efficient alternative technology available on the market could not be calculated, as we were unable to provide valid evidence or publicly available energy consumption data for competing presses. In 2022, tenders for banknote printing presses were published on the Internet with energy data confirmed by the only competitor in the press class. The content of tender invitations depends on customer requirements and differs in the case of banknote printing presses due to the fact that customers vary considerably from year to year. As a result, no taxonomy-aligned revenue in CCM 3.6. “Production of other low-carbon technologies” was reported in the year under review.
Figure: Share of revenue from goods or services associated with taxonomy-aligned economic activities – disclosure for 2024
Taxonomy-eligible capital expenditure
In order to identify the taxonomy-eligible proportion of capital expenditure, the investments determined by Group accounting in accordance with IFRS are placed in the denominator. This amount can be derived from the additions column in the consolidated statement of changes in assets on page 84 of the 2024 annual report. It includes additions to property, plant and equipment and intangible assets during the year before depreciation and remeasurements, including those resulting from remeasurements and impairments for 2024 and excluding changes in fair value. In addition to additions to fixed assets (IAS 16) and intangible assets (IAS 38), additions to right-of-use assets (IFRS 16) are also included, as are additions to property, plant and equipment and intangible assets resulting from business combinations.
The first partial value of the numerator for determining the taxonomy-eligible share of capital expenditure includes the investment in an energy-efficient foundry melting operation (climate change mitigation activity CCM 7.3 “Installation, maintenance and repair of energy-efficient equipment”) at the Würzburg site and measures for reducing energy consumption or increasing energy efficiency at the factory buildings. The climate change mitigation activity CCM 7.6 “Installation, maintenance and repair of technologies for renewable energies” includes investments in photovoltaic systems. The investments coming under categories CCM 7.3 and CCM 7.6 are classified as taxonomy-eligible capital expenditure in accordance with Section 1.1.2.2. (c) of Annex I of Commission Delegated Regulation (EU) 2021/2178 on the disclosure obligations under Article 8 of the EU Taxonomy Regulation, including the amendment by Commission Delegated Regulation (EU) 2023/2486. As the remaining part of the total investments for taxonomy-eligible or non-taxonomy-eligible economic activities, adjusted for investments in non-production areas (corporate investments), is incurred at the Group locations, e.g. for new machining centres in production, this difference is broken down according to the percentage share of taxonomy-eligible revenue in the overall product portfolio in order to determine the taxonomy-eligible share of this capital expenditure. The resulting taxonomy-eligible capital expenditure assigned to economic activity CCM 3.6 is allocated to category A. The sum total of the taxonomy-eligible category A and category C capital expenditure is used as the numerator for calculating the taxonomy-eligible share of capital expenditure as no category B capital expenditure arose in the year under review.
Category B includes capital expenditure that is part of a capital expenditure plan to expand taxonomy-eligible economic activities or to enable taxonomy-eligible economic activities to become taxonomy-aligned. While category a includes capital expenditure on assets or processes that relate to taxonomy-eligible economic activities, category c includes capital expenditure that relates to the acquisition of output from taxonomy-eligible economic activities and individual measures that enable the target activities to become low-carbon or lead to greenhouse gas reductions. The corresponding categorisation applies analogously to the explanations on operating expenditure in the following sections.
Taxonomy-aligned capital expenditure
Taxonomy-aligned capital expenditure in categories CCM 7.3 and CCM 7.6 was not reported in the year under review because the suppliers or business partners did not provide any evidence of fulfilment of the DNSH criteria and compliance with the minimum protection for individual taxonomy-eligible capital expenditure. As there are no taxonomy-aligned economic activities under category 3.6 “Production of other low-carbon technologies”, it was not possible to use a revenue-based allocation key to determine taxonomy-aligned capital expenditure according to CMM 3.6.
Figure: Share of capital expenditure from goods or services associated with taxonomy-aligned economic activities – disclosure for 2024
Taxonomy-eligible operating expenditure
Operating expenditure in the sense of the EU taxonomy includes non-capitalisable expenses for research and development, building refurbishment measures, short-term leases, maintenance and servicing, among other things. To calculate the taxonomy-eligible share of operating expenditure, the total value of denominator is first determined. One input for the denominator is the non-capitalised R&D costs, which are shown in the consolidated income statement on page 65 of the 2024 annual report. The second input for the denominator is the maintenance and servicing costs in production, sales and administration as well as the expenses for short-term and low-value leases, which are also included in the cost of sales, selling and administrative expenses recognised in the consolidated income statement on page 65 of the annual report. The expenditure for measures for reducing energy consumption or increasing energy efficiency at the factory buildings and for maintaining the photovoltaic systems installed forms a partial value in the numerator for identifying the taxonomy-eligible proportion of operating expenses. This expenditure coming within the economic activities CCM 7.3 “Installation, maintenance and repair of energy-efficient equipment” and CCM 7.6 “Installation, maintenance and repair of renewable energy technologies” is classified as taxonomy-eligible operating expenditure in accordance with Section 1.1.3.2. (c) of Annex I of Commission Delegated Regulation (EU) 2021/2178 on the reporting obligations under Article 8 of the EU Taxonomy Regulation, including the amendment by Commission Delegated Regulation (EU) 2023/2486. As the remainder of the total operating expenditure for taxonomy-eligible or non-taxonomy-eligible economic activities arises at the Group locations and a more accurate breakdown is not possible for system-related reasons, this difference is disaggregated on the basis of the percentage of taxonomy-eligible revenue in the entire product portfolio in order to determine the taxonomy-eligible category A operating expenditure allocated to economic activity CCM 3.6. The sum total of the taxonomy-eligible category A and category C operating expenditure is used as the numerator for calculating the taxonomy-eligible share of operating expenses as no category B operating expenses arose in the year under review.
Taxonomy-aligned operating expenditure
Taxonomy-aligned operating expenditure in categories CCM 7.3 and CCM 7.6 was not reported in the year under review because the suppliers or business partners did not provide any evidence of fulfilment of the DNSH criteria and compliance with the minimum protection for individual taxonomy-eligible operating expenditure. As there are no taxonomy-aligned economic activities under category 3.6 “Production of other low-carbon technologies”, it was not possible to use a revenue-based allocation key to determine taxonomy-aligned operating expenditure according to CMM 3.6.
Figure: Share of operating expenditure share from goods or services associated with taxonomy-aligned economic activities – disclosure for 2024
