Foreword
Dear Reader,
Knorr‑Bremse can weather a crisis – and we impressively proved that again in 2023 by setting new records for revenue, order intake, and the order book in spite of enormous economic challenges. War and territorial conflict, persistently high energy prices, and the slow decline in inflation burdened the global economy, and therefore our business, in 2023. However, thanks to our resilience and strong performance, we were able to achieve our ambitious targets. Sustainability has once again proven to be an important driver for Knorr‑Bremse as a company shaping the future.
The Executive Board is united in its commitment to the sustainable direction of Knorr‑Bremse and has emphasized the significance of sustainability for innovation and profitable company growth in the “BOOST 2026” strategy program. With our products, our processes, and our employees’ development spirit, we enable safe and sustainable mobility. As part of our integrated sustainability strategy, we continued to work in a structured manner on improving our sustainability performance along the entire value chain in 2023. Examples include the ongoing implementation of energy efficiency measures, the expansion of renewable energy self-generation, the stronger incorporation of sustainability in decision-making processes, and the efficient product solutions we have successfully developed for our customers. External sustainability ratings and rankings rewarded our efforts and performance with above-average ratings in many cases, e.g. Knorr‑Bremse received an A- rating from CDP.
Sustainable action in all areas of responsibility – this is what the Executive Board of Knorr‑Bremse stands for
Our ‘BOOST 2026’ strategy stands for profitable company growth. Knorr‑Bremse’s determined focus on sustainability will be a key factor of success in this. With technological excellence, our product range, our processes, and our committed employees, we are a reliable paver of the way for ESG and our customers’ sustainable mobility. As such, we are also supporting our innovation and long-term business success.
The rail industry demands solutions that promote cost-effectiveness, reliability, and efficiency in train operation. This is how to shift traffic toward rail and accelerate decarbonization. Knorr‑Bremse is just as much a pioneer for this as it is for its digital strategy, with developments such as the Digital Automatic Coupler (DAC) for the freight train of the future. This unlocks new business models for us, e.g., Nexxiot solutions for condition-based maintenance.
Being involved in shaping and driving corporate culture is a very intensive and worthwhile task. Our vision as a technology company is to be a top employer where everyone enjoys working due to the appreciative corporate culture. Our revised leadership principles, the further development of our speak-up and leadership culture and our holistic diversity strategy are important elements in this. We know that cultural change takes time, but we are already setting a lot in motion thanks to our highly motivated workforce!
With the eCUBATOR innovation unit, we are directing our product portfolio toward e-mobility. We develop secure and reliable systems that correspond with the vehicle makers’ electrification road maps, featuring energy efficiency and minimized noise and fine dust emission. Our eCUBATOR is fit for the future, too, as we developed strategic focus areas and a global setup in 2023 in order to respond to regional legislation and market requirements quickly and efficiently.
Knorr‑Bremse has set ambitious sustainability targets, and these can only be met with a strong organizational structure for sustainability. We align it with the targets and are consistently integrating sustainability further into our decision-making processes. Noteworthy examples of this include the independent confirmation of our ambitious emission reduction targets by the SBTi and the establishment of an internal carbon price as a criterion for capital expenditure decisions.
The linking of STI and LTI remuneration at the management levels 0 to 2 to ESG criteria is just one example of the ongoing integration of sustainability into the company-wide governance structures. Another is the fact that two thirds of Knorr‑Bremse’s financing instruments are linked to sustainability criteria. Compliance with responsible business practices and principles can be seen, for example, in our commitment to a sustainable supply chain management, which we foster with sustainability assessments and audits of suppliers.
Climate change is a major challenge, and we counter it with our climate protection strategy and innovative product portfolio that make a contribution to sustainable mobility. Knorr‑Bremse has committed itself to a long-term target of net zero emissions (Scopes 1 to 3) by 2050. Milestones on this journey include our revised interim targets for 2030, which have been validated by the Science Based Target initiative (SBTi). We are on track to reduce our Scope 1 and Scope 2 emissions and have expanded our reporting on material indirect emissions along our value chain (Scope 3). Our internal carbon price, introduced in 2023 as a criterion for capital expenditure decisions, is a further contribution to climate protection.
Knorr‑Bremse, a global market and technology leader as well as system supplier, is a key driver of transformation in transportation and mobility. This is underscored by our R&D activities, on which we spent 6.9 % of consolidated revenue in 2023. Our sustainable mobility solutions, developed from an EcoDesign perspective, fit the development road maps of rail and road customers.
Economical and reliable solutions for train operation promote the shift of traffic to environmentally friendly rail transportation and accelerate decarbonization. Our Digital Automatic Coupler (DAC), alongside our passenger couplers first ordered in 2023, is part of the solution package for the Digital Freight Train. The latest generation of the CubeControl brake control paves the way for the innovative Reproducible Braking Distance (RBD) brake architecture, which can increase rail transportation capacity. Furthermore, digital services and business models enable improved train life cycle management.
A wide variety of of Knorr‑Bremse technologies and solutions contribute to the decarbonization of the commercial vehicle industry, as well. In the Commercial Vehicle Systems division, the successful eCUBATOR innovation unit was extended beyond 2023. At it, we are developing system solutions for electric commercial vehicles and, in the future, will concentrate on further fields of business surrounding zero-emission vehicles. Our commercial vehicle steering business offers electric power steering (EPS), a key technology for automated driver assistance systems (ADAS), highly automated driving (HAD), and e-mobility. We are also committed to the idea of the circular economy and remanufacturing, the industrial reconditioning of used brake components. This conserves valuable raw materials and energy.
An extensive, longer-term task is the cultural change initiated within the company in 2023. The management and workforce are shaping and driving this change together. Our vision, as an open, highly innovative technology company, is to be a top employer. Important elements of this include the enhanced leadership culture and the Group-wide Diversity, Equity, and Inclusion (DEI) Strategy, which is being rolled out. Our social commitment, with over 450 Local Care projects in 2023, not only promotes our appeal as an employer and the cohesion of our workforce, but also contributes above all to an improvement of the living conditions surrounding our locations.
We have set the course to continue fulfilling our responsibility towards the environment, employees and society in the future. Find out more about our strategy, targets, and initiatives in our online Sustainability Report. The additional magazine section presents a few of our employees who are practicing and promoting sustainability at Knorr‑Bremse. We hope you enjoy reading it.
The Executive Board
Knorr‑Bremse AG
