Using the disclosure recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), the table below provides information on climate-related risks and opportunities. The table is divided into four key areas in line with the four core categories governance, strategy, risk management, as well as metrics and targets.
|Disclose the organization’s governance around climate-related risks and opportunities.|
|a) Describe the Board’s oversight of climate-related risks and opportunities.||The highest governing body for sustainability, including climate-related issues, is our Sustainability Decision Board. Headed by CEO Rice Powell, it is responsible for integrating sustainability into our strategy and business. Together with the Sustainability Decision Board, the Management Board decides on strategic sustainability initiatives. The Management Board monitors the progress of our Global Sustainability Program, with one key focus area being the environment, including climate-related risks and opportunities. The Global Head of Sustainability informs the Management Board several times a year about the progress of the Global Sustainability Program. |
|b) Describe management’s role in assessing and managing climate-related risks and opportunities.|| |
Sustainability, including climate-related risks, is monitored and assessed as part of our corporate risk management. Twice a year, risks are discussed in dedicated risk committees. Identified risks are compiled and communicated to the Management Board. The focus during this process is on significant risks, which are above a defined threshold.
|Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.|
|a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. |
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.
For an overview of risks which could have an impact on our business operations, please see our Risks and Opportunities Report – Risk Management (page 64 ff.).
Transition risk: market – Procurement (medium risk in the short term; low risk in the medium term)
For an overview about our opportunities management, please see our Risks and Opportunities Report – Opportunities Management (page 74 ff.).
Improving the eco-performance of our products and services
Efficient operationsFor information on environmental initiatives to promote the efficient use of natural resources, please see our Non-Financial Report – Reducing the Environmental Impact (pages 97 ff.) as well as our corporate website.
|Disclose how the organization identifies, assesses, and manages climate-related risks.|
|a) Describe the organization’s processes for identifying and assessing climate-related risks.|| |
Sustainability, including climate-related risks is monitored and assessed as part of our corporate risk management. The assessment is based on a list of potential sustainability risks, which is regularly reviewed. Risks are classified based on their potential impact and likelihood.
|b) Describe the organization’s processes for managing climate-related risks|| |
We see risk management including climate-related risks as an ongoing task of determining, analyzing and evaluating the spectrum of actual and potential risks arising from our operations in our business environment. This includes, where possible, taking pre-emptive and corrective measures. Our risk management system provides us with a basis for these activities. It allows us to identify risks that could jeopardize our growth or going concern and to take steps to minimize negative impacts. Accordingly, it is an important component of our management and governance.
|c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.|| |
Sustainability risks, including climate-related risks are integrated into our company-wide risk management. The risk assessment is based on a list of potential risks, which is regularly reviewed. Twice a year, the Management Board is informed about identified risks. The focus is on significant risks, which are above a defined threshold.
Metrics and targets
|Disclose how the organization identifies, assesses, and manages climate-related risks and opportunities.|
|a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.|| |
We measure and assess several key performance indicators as part of our environmental management. This includes water and energy consumption, facilities in water-stressed areas, Scope 1 and 2 greenhouse gas emissions, production sites with ISO 14001 as well as ISO 50001 certification, and resource-friendly dialysis machines produced. We calculate our Scope 1 and 2 greenhouse gas emissions following the methodology of the Greenhouse Gas Protocol, using the latest version of the UK Department for Environment, Food and Rural Affairs (DEFRA) as well as the emission factors of the International Energy Agency for electricity consumption.
|b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.|| |
We currently disclose Scope 1 and Scope 2 greenhouse gas emissions. As part of our Global Sustainability Program, we will also quantify and disclose Scope 3 emissions. Detailed emission reduction targets for the years to come will be developed in a next step.
Sustainability risks, including climate-related risks are integrated into our company-wide risk management. We are carefully monitoring regulatory developments and market trends. In 2020, we have not identified any significant risks related to our own operations, business relationships, products, or services that are very likely to have an adverse effect on material non-financial topics.
1 Time horizon for the short-term effect: one year, time horizon for the mid-term effect: five years.