Our sustainability process
- The material topics are determined by conducting a materiality analysis (stakeholder survey and impact assessment every 2 to 3 years, updates in the meantime).
- The results are presented to the executive board for approval.
- The material topics are discussed in workshops with all respective departments and respective measures and goals are defined or updated.
– Workshops: following a new materiality analysis
– Update discussions ESG program: following an update of the materiality analysis
- These measures and goals result in an ESG program also presented in the sustainability report.
- The ESG program is presented to the executive board for approval.
In order to determine the material contents for the current sustainability report, we first conducted a materiality analysis with the assistance of selected employees from the subsidiaries of the PIERER Mobility Group in 2017. As part of this, we identified those topics relating to environmental, social and employee interests, observance of human rights and tackling of corruption that have an impact on our activities and are of relevance to our long-term business success. On the basis of our ongoing communication with our stakeholders during the year, we have since reviewed the key topics at least once a year to ensure that they are up to date and have been able to leave them unchanged.
There have been some recent developments, both in terms of society as a whole and in terms of general policy, which prompted us to revise and conduct the materiality analysis in 2020. Due to the COVID pandemic, it took the form of an online survey. This gave us the opportunity to survey a much wider stakeholder group, including a number of external stakeholders. In addition to assessing the impact of our business activities on the environment and society, the key topics were also assessed to determine their influence on stakeholder decisions and actions, with the following result:
In general, all the topics surveyed were rated as more important than in previous years – except for the topic of “Combating corruption”, which was rated much higher in 2020. The topics of “Research and development” and “Product quality and safety for customers” are, as in previous years, the most highly rated, and are at the top of the topic rankings. Of the new key topics, “Alternative drive technologies” and “Road safety” received the highest rating.
Our key sustainability topics
- Occupational safety and employee health
- Training and further education of employees
- Fair pay and labor standards (diversity and equal treatment)
- Local employment: jobs *
- Alternative drive technologies (including electric mobility) *
- Research and development
- Product quality and costumer safety
- Pollutant emissions from vehicles (emissions) *
- Road safety *
Environmentally conscious production
- Efficiency in the use of materials (waste, recycling management) *
- Local employment: responsible procurement *
- Energy efficiency *
- Business compliance (combating corruption, data protection *)
- Environmental and social standards in the supply chain
* New material topic which was included in 2020 as part of the materiality analysis.
Our ESG Program
The measures and targets in this ESG program will be reviewed, updated or redefined in annual workshops with the departments along the ESG topics which are identified as material. The ESG program will then be submitted to the Executive Board for approval.
An initial version of the ESG program was prepared in 2021 in line with the future process and attached in detailed form to the appendix. A brief overview of the measures in the four ESG areas with their respective status are shown here (PDF, 150 KB).
Our contribution to the SDGs
We want to help to achieve the global Sustainable Development Goals (focus SDGs) with our operating activities and ensure that its operating activities do not have any adverse effects on the issues and objectives (further SDGs):
SDG 3 – Good health and well-being (focus SDG)
PIERER Mobility AG has set itself the goal of manufacturing particularly safe and high-quality products. Customer health and safety always have top priority across all product areas. The research and development department of KTM AG is therefore heavily committed to ensuring the safety of its customers and works on future-oriented solutions. Examples include the world’s first “motorcycle stability control” system, but also a PTW bend warning system and ideas for “vehicle-to-vehicle (V2V) communication”. The development and use of such safety and rider assistance systems helps to reduce the number of avoidable motorcycle accidents (SDG 3.6). Furthermore, to further improve the training program for test riders, the KTM Riders Academy was launched. This ensures that KTM employees receive regular rider training in line with their job description.
As a manufacturing company, the PIERER Mobility Group has a particular responsibility to ensure the health and safety of its employees. Continuous improvements in the area of occupational safety and the introduction of new health promotion measures also contribute towards SDG 3. In the area of mental health, the focus is on burnout prevention and support, primarily in collaboration with the occupational psychologist and the human resources department (SDG 3.4). As part of the general occupational health services, a comprehensive range of health services is available in the company. These range from acute first aid, eyesight tests and maternity leave to vaccination services such as active vaccination advice and low-threshold access to various vaccinations (SDG 3.8). Occupational safety is improved by making continuous adjustments to production processes, by providing technical equipment on the production lines to reduce occupational accidents, but also by monitoring the health consequences of materials used and having emergency plans for accident scenarios (SDG 3.9). Our measures in the areas “Reliable Employer” / Sustainable mobility“.
SDG 4 – Quality education
With its initiatives focusing on the training and education of potential and existing employees, the PIERER Mobility Group is making a valuable contribution to SDG 4 which aims to provide quality education and lifelong learning opportunities and enables everyone to enjoy equal access to this.
Apprentice training forms an important aspect of HR strategy, as the employees make a significant contribution to the company’s success. KTM is therefore investing around 2.5 million euros in the expansion of its apprentice workshop. Through intensive cooperation with vocational colleges, universities and UASs, young people in particular are offered wide-ranging opportunities to obtain high-quality vocational and technical education and training (SDG 4.3). Women in STEM professions are also specifically supported and the proportion of female apprentices is increasing (SDG 4.5). Existing employees have the opportunity to choose from a comprehensive further training program offered by the KTM_academy (e.g. digital transfer manager course, sales trainee program, management training, online language training) or from academic courses (KTM Young Pioneers College, KTM Digital Intrapreneurship MBA) to increase their individual qualifications (SDG 4.4). Our measures in the area “Reliable Employer“.
SDG 5 – Gender equality
The PIERER Mobility Group believes that all employees have a right to work in a safe, fair and respectful environment that promotes equal opportunities. This is stated in the Diversity and Anti-Discrimination Policy and practiced accordingly. In addition to measures for flexible working arrangements – such as working from home, flexible working hours and part-time positions – women in STEM professions receive specific support. This is resulting in an increase in female apprentices in technical areas as well as an overall increase in the number of female employees in the company, not least in management positions (SDG 5.5). The Code of Conduct strictly prohibits all discrimination, which is again addressed in the above-mentioned policy, defined and explained in more detail, and also backed up with disciplinary measures. This is helping to end discrimination (SDG 5.1).
SDG 6 – Clean water and sanitation
As part of environmentally aware production, the PIERER Mobility Group also pays attention to efficient use of water and consistent wastewater prevention and treatment. In addition, a solvent-based parts washing system prevents the generation of wastewater that would have to be disposed of at great cost.
SDG 7 – Affordable and clean energy
In addition to a photovoltaic installation to supply the House of Brands in Munderfing, other measures under SDG 7.3 essentially involve improving efficiency, for example through LED lighting, timer switches and the optimization of production facilities. The roof area of the KTM logistics center in Munderfing was also rented out for the construction of another photovoltaic installation covering 40,000 m². This installation is designed to feed electricity into the public grid.
SDG 8 – Decent work and economic growth (focus SDG)
The PIERER Mobility Group is considered a technology pioneer in the premium motorcycle segment and is also one of the largest employers in Upper Austria. For KTM AG, as the leading motorcycle manufacturer in Europe, it is our declared goal to continue to grow to further expand our leading role when it comes to technology, sales and sustainability in the world of motorcycling. Research and development has therefore been the focus of our activities for many years. This generates economic growth (SDG 8.1), while attractive jobs comprising interesting tasks as well as opportunities for further training and promotion give employees the opportunity to demonstrate their skills, and new and valuable jobs are created (SDG 8.5, SDG 9.2).
As the company continues to evolve and focus increasingly on sustainable business practices, it is also realizing efficiencies in production that, as well as leading to higher productivity, also address the use of materials and resource intensity (SDG 8.2 and SDG 8.4). These include, for example, reprocessing facilities for engine oil as well as a high recycling rate for metal waste and the use of recyclable containers instead of disposable packaging.
To promote decent working conditions, the PIERER Mobility Group relies on a positive working environment and expects its managers, employees, and business partners to respect human rights. A Code of Conduct, the Diversity and Anti-Discrimination Policy and a Declaration against modern slavery and human trafficking make this position unequivocal (SDG 8.7). Internal contact points have been set up within the company to report possible irregularities. The Code of Conduct and an Occupational Health and Safety Policy also help to protect workers’ rights and promote a safe working environment (SDG 8.8). Our measures in the areas “Reliable Employer / Sustainable mobility / Environmentally conscious production / Fair business practice“.
SDG 9 – Industry, innovation and infrastructure (focus SDG)
The pursuit of technological progress and the promotion of innovation are the cornerstones of the PIERER Mobility Group’s business model. Our stated goal is to further expand our pioneering role in terms of technology, sales and sustainability in the powered two-wheeler world through continuous growth. The progressive R&D strategy has produced innovative products which meet the high expectations of our customers in terms of technology, performance and efficiency. Rising sales figures confirm this claim and thus also provide a basis for creating more jobs – even during a global crisis (SDG 9.2). As a leading innovator in the sports motorcycle sector, the PIERER Mobility Group traditionally pays great attention to its culture of innovation. In recent years, for example, significant investments have been made in the Group’s research and development sites, such as the competence center for e-mobility in Anif near Salzburg which opened in 2021 (SDG 9.5). Our measures in the areas “Sustainable mobility / Environmentally conscious production“.
SDG 11 – Sustainable cities and communities (focus SDG)
The Pierer Mobility Group’s products, powered two-wheelers, are also frequently used in urban areas, where they can have an impact on air quality. The development of low-emission and alternative drive technologies such as electric mobility can reduce application-related pollutant emissions into the air and thus contribute to SDG 11.6. Our measures in the area “Sustainable mobility“.
SDG 12 – Responsible consumption and production (focus SDG)
We also support SDG 12 by using natural resources efficiently and by taking measures to avoid, reduce and recycle any waste we produce. In the development and production of its products, the PIERER Mobility Group attaches great importance to the efficient and resource-conserving use of materials and a sustainable approach to the environment. This is why the issue of increasing efficiency as well as making the fullest possible use of raw materials, including recycling, is extremely important. In addition to an engine oil reprocessing facility, reusable containers are increasingly being used to reduce the waste of resources (SDG 12.5). Materials such as steel and aluminum chips or various plastics that cannot be recycled in the company’s own value chain are collected separately as part of waste management and handed over to a certified waste disposal partner. An environmental management system in accordance with ISO 14001:2015 is used among other things to coordinate these issues and to ensure that all materials are handled and disposed of safely and properly (SDG 12.4). Local procurement strategies, including support for social ventures, purchasing conditions with social and environmental criteria, and the Code of Conduct contribute to SDG 12.7. Our measures in the areas “Sustainable mobility / Environmentally conscious production / Fair business practice“.
SDG 13 – Climate action (focus SDG)
The PIERER Mobility Group is conscious of the contribution that its operating activities make to climate change and supports SDG 13 with measures to combat climate change. For example, the company shares the ACEM strategy for decarbonization of Powered Two-Wheelers (PTWs) by 2050 and is working with project partners on concepts for sustainable mobility in urban habitats (SDG 13.2). An important aspect in the development of homologated vehicles is the reduction of exhaust and noise emissions. Energy-efficient, electrically powered two-wheelers in particular represent an essential part of our solution. A sustainable approach therefore involves above all the phased reduction of emissions over the entire product life cycle. Thanks to many years of intensive development work in the field of electric traction systems for PTW, a substantial technology platform has been created in addition to the first products available on the market. This will enable further vehicles powered by renewable energy to be launched on the market (SDG 13.3). Our measures in the areas “Sustainable mobility / Environmentally conscious production“.
While combating climate change is essential, measures must also be taken to adapt to unavoidable consequences of climate change (SDG 13.1). To this end, the Pierer Mobility Group systematically considers climate risks and opportunities and is guided by the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). A corresponding report will debut in 2021, and the results will be incorporated into the definition of goals and the identification of measures.
SDG 16 – Peace, justice and strong institutions
The PIERER Mobility Group advocates the respective national anti-corruption provisions and the international directives or recommendations (e.g. UNCAC, U.S. Foreign Corrupt Practices Act, UK Bribery Act, OECD Guidelines for Multinational Enterprises). It does not tolerate any practices in which business transactions are concluded by unfair means (SDG 16.5). The Code of Conduct lays down comprehensive conduct guidelines in relation to awarding of undue advantages, corruption and bribery. The mandatory principles defined therein in relation to awarding and acceptance of undue advantages provide a regulatory framework that board members, managers and employees must regard as a guide for their conduct when dealing with suppliers and customers. Every contractual partner that wants to do business with the PIERER Mobility Group must also accept and comply with the ethical principles, general principles and minimum standards of the Code of Conduct. This is an integral part of the basis for concluding any contracts. Our measures in the area “Fair business practice“.