DEUTZ AG
Material Topics
Sustainability statement, in full
The complete text of DEUTZ AG’s FY2025 sustainability statement is held here – 85 pages, captured from the published report. Every disclosure below also links to its own passage.
ESRS 2 – General Disclosures
GOV-1The role of the administrative, management and supervisory bodiesReported
The role of the administrative, management and supervisory bodies
Reference: pages 96-98.
DEUTZ has a two-tier board system under German stock corporation law: the Board of Management (three executive members as at December 31, 2025) runs the Company, and the twelve-member Supervisory Board (six shareholder representatives, six employee representatives) supervises it. "DEUTZ does not have an administrative body."
Composition: the Board of Management comprised two male members and one female member at year end (around 33% female), down from one female/three male during January 2025. The Supervisory Board was seven male and five female members at year end (around 42% female); "All members of the DEUTZ AG Supervisory Board, in other words 100%, are independent."
Oversight of IROs: monitored at the top level by the Supervisory Board; at Board level it is "fundamentally the responsibility of" the Chairman, Dr. Sebastian C. Schulte, with the full Board involved. Operationally, the Sustainable Development Committee (SDC) - department heads, topic owners and Investor Relations - develops target-setting criteria and action plans.
DEUTZ states plainly: "The responsibilities of individual bodies or persons in relation to our IROs are not yet formally set out in our mandates, nor in IRO-related policies, most of which do not yet exist either." A planned formal governance structure was deferred until after the next full materiality assessment, because of the 2026 reorganization into five new business units.
GOV-2Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodiesReported
Information provided to and sustainability matters addressed by the administrative, management and supervisory bodies
Reference: pages 98-99.
After the 2023/2024 double materiality assessment, the Board of Management and Supervisory Board were briefed twice in 2024: once when the SDC presented the materiality matrix, and again after a year-end review that adjusted it. In the second half of 2025, the SDC presented the Board and the Supervisory Board's Audit Committee with the findings of a further review of the 2023/2024 results; both bodies confirmed the findings.
"As DEUTZ still does not currently have any IRO-specific policies, metrics and, for the most part, targets in place (except in relation to research and innovation, pollution, and health and safety), the Board of Management and the Supervisory Board could not be informed about their results or effectiveness in 2025." Material IROs were also not yet factored into decisions on major transactions, and the planned integration into regular risk management for 2025 "was not implemented," now deferred to after the next full assessment.
The report reproduces the full materiality matrix discussed with both bodies in 2024: the 19 material IROs spanning climate change, pollution, occupational health and safety, and research and innovation.
GOV-2(was GOV-3)Integration of sustainability-related performance in incentive schemesReported
Integration of sustainability-related performance in incentive schemes
Reference: page 100 (text continues to 103).
Board of Management remuneration has fixed and variable components; variable pay comprises a one-year short-term incentive (STI) and a four-year long-term incentive (LTI) of virtual performance shares. In 2025 the STI's sustainability and strategy-implementation criteria (20% of that component) covered the NewTech organization go-live and internal-control-system work; "There were no environmental and climate-related criteria for the STI in 2025."
The LTI is climate-linked: from the 2025 tranche its environmental-dimension criteria are "Revenue in the DEUTZ Solutions segment" and "Carbon emissions of the production sites (tCO2eq) in relation to Group revenue", alongside social-dimension criteria (trainee ratio, staff turnover, employee enablement).
"The proportion of variable remuneration exclusively linked to climate-related targets and/or performance criteria was 11.0% in 2025," equal to 6.1% of the Chairman's and 5.9% of ordinary members' target total direct remuneration. Supervisory Board remuneration is entirely fixed/non-performance-based, so "sustainability matters and climate-related considerations are not factored into" it.
GOV-3(was GOV-4)Statement on due diligenceReported
Statement on due diligence
Reference: page 101.
DEUTZ maps the ESRS core elements of due diligence to specific disclosures rather than narrating a separate due-diligence process. (a) Embedding in governance, strategy and business model is covered by GOV-1, GOV-2, GOV-3, SBM-3, SBM-2 and IRO-1. (b) Engaging with affected stakeholders is covered by SBM-3, IRO-1 and S1-2. (c) Identifying and assessing adverse impacts is covered by SBM-3 and IRO-1. (d) Taking action on adverse impacts is covered by E1-3, E2-2, S1-1 and S1-4. (e) Tracking effectiveness and communicating is covered by E1-5, E1-6, S1-6, S1-14 and S1-17.
The table is presented without separate narrative, consistent with DEUTZ's statement elsewhere that it does not yet have formal IRO-specific policies or a due-diligence process that is integrated into risk management (see GOV-1, GOV-2).
GOV-4(was GOV-5)Risk management and internal controls over sustainability reportingReported
Risk management and internal controls over sustainability reporting
Reference: page 102.
DEUTZ's internal control system (ICS) for sustainability reporting follows a control-environment / risk-assessment / control-activities / information-and-communication / monitoring structure. Risks inherent in the reporting process are rated "high," "medium," or "low" qualitatively (scale of damage, likelihood of occurrence); medium-to-high risks go into a risk catalog, while low inherent risks "are not considered in the ICS analysis as they are not material." Corporate Audit, as a process-independent monitoring body, reviews the ICS's appropriateness and effectiveness and reports directly to the Board of Management, ICS management and process owners.
"An incomplete materiality assessment, the inaccurate collection of metrics, and the failure to prepare and submit reports on time were the main risks identified" for the ICS. Mitigations include an appointed ESG/IR manager, checklists, plausibility checks, a second-person review requirement, and regular interdepartmental meetings. Findings are reported to the Supervisory Board's Audit Committee and the CFO.
SBM-1Strategy, business model and value chainReported
Strategy, business model and value chain
Reference: pages 91-94.
DEUTZ describes itself as having "evolved in recent years from a manufacturer of conventional drive systems into a system provider for innovative and sustainable mobility and energy solutions," alongside its core business: "development, production, and marketing of high-performance drive systems for off-highway applications." With around 1,250 sales and service locations in nearly 180 countries, the Group also expanded into defense in 2025 via the acquisition of the SOBEK Group (drive systems for drones) and a partnership with ARX Robotics.
Segments: from January 1, 2025 the Group reports DEUTZ Engines & Services (91.1% of 2025 consolidated revenue) and DEUTZ Solutions (comprising the DEUTZ NewTech and DEUTZ Energy business units, covering alternative drives and decentralized energy/power generation). Effective January 1, 2026, five business units replace this structure: DEUTZ Engines, DEUTZ Service, DEUTZ NewTech, DEUTZ Energy and DEUTZ Defense.
The sustainability statement's value chain estimation tables (Scope 3 purchased goods and services, transportation/distribution, and use-phase emissions) describe data sourced from the ecoinvent database, safety margins, and extrapolation from sales volumes, each rated for accuracy (pages 92-93).
SBM-2Interests and views of stakeholdersReported
Interests and views of stakeholders
Reference: pages 94-96.
DEUTZ names its most important stakeholders as employees, customers, suppliers and shareholders, plus institutional investors and analysts, maintained through regular dialogue. Employees: works councils (Betriebsrat in Germany under the BetrVG, plus a dedicated works council for the Spanish site in Zafra) are informed about and participate in HR decisions on working hours, pay, recruitment and dismissal; a disabled persons' representative, an Inclusion Officer and an Equality Officer (appointed 2024) protect specific groups; employee-elected representatives also sit on the Supervisory Board. Channels include staff letters, the intranet, Board of Management videos, the DEUTZ Mobile app, and the twice-yearly DEUTZ Pulse Check survey (replacing a three-yearly full survey).
Investors/analysts: one-on-one meetings, conferences, roadshows and a Capital Markets Day (most recently 2024, including a perception study of the corporate strategy).
DEUTZ is explicit about the limits of this engagement: "We have not analyzed the interests and views of our key stakeholders as part of the due diligence and/or materiality assessment processes." The two ESRS 1-defined stakeholder groups (affected stakeholders, users of sustainability statements) were consulted only through the 2023/2024 survey and a small 2025 validation survey of two in-house participants plus the SDC.
SBM-3Material impacts, risks and opportunities and their interaction with strategy and business modelReported
Material impacts, risks and opportunities and their interaction with strategy and business model
Reference: pages 106, 109-111, 133, 141-142.
DEUTZ's first double materiality assessment (2023/2024, with an external consultancy) identified 19 material IROs, reviewed (not re-run) in 2025. The confirmed conclusion: "the following overarching topics identified as material in 2024 continue to be the topics that are material to DEUTZ and thus form the basis for our 2025 sustainability statement: climate change (ESRS E1), pollution (ESRS E2), occupational health and safety (ESRS S1), and research and innovation (DEUTZ-specific)."
By impact/risk/opportunity type: E1 contributes 7 negative impacts, 1 positive impact (Green-segment reductions), 1 risk (loss of value-added depth from electrified drives) and 1 opportunity (emission-neutral-product competitive edge). E2 contributes 2 negative impacts (raw-material extraction/processing; use-phase air emissions). S1 contributes 1 negative impact (occupational health and safety). The entity-specific research & innovation topic contributes 1 negative impact, 2 positive impacts and 3 opportunities - 19 rows in total.
"The materiality assessment for 2024 was the first and most recent such assessment ... Consequently, no comparative information is available in respect of material impacts, risks, and opportunities from prior reporting periods." Water/marine resources, biodiversity/ecosystems and resource use/circular economy (E3, E4, E5) and governance (G1) were each separately assessed and found not material (see IRO-1).
IRO-1Description of the processes to identify and assess material impacts, risks and opportunitiesReported
Description of the processes to identify and assess material impacts, risks and opportunities
Reference: pages 103-105 (continuing through the topic-specific IRO sections).
The 2023/2024 double materiality assessment followed ESRS 1 chapter 3 with an external consultancy: an internal expert group identified sustainability topics (including the entity-specific "research & innovation" topic), collected impacts via a stakeholder survey, and assessed materiality using severity/likelihood for impacts and EBIT-based likelihood/scale for financial effects. Scope covered "DEUTZ's entire value chain ... the supply chain, own operations, and the product use phase and end-of-life treatment."
For 2025, DEUTZ ran only a review (no new survey of the two ESRS 1 stakeholder groups), concluding no adjustment was needed.
E3/E4/E5 (water, biodiversity, resource use): "The outcome was that the aforementioned topics are not deemed material." Assets were not reviewed and "the stakeholder group »affected communities« was not consulted."
Governance (G1): "the topic of governance was classified as not material."
Climate-specific scenarios and physical-risk methodology are detailed under E1-2-ScenarioAnalysis. "The process to identify, assess, and manage impacts and risks has not yet been integrated into the overall risk management process."
IRO-2Disclosure requirements in ESRS covered by the undertaking's sustainability statementReported
Disclosure requirements in ESRS covered by the undertaking's sustainability statement
Reference: page 108; the "CSRD content index" at page 151 onward sets out every disclosure requirement and its page reference.
"In this sustainability statement, we have complied with the ESRS disclosure requirements as set out in the content index on page 151 onward. There, we have also included a list of all datapoints deriving from other EU legislation, as listed in Appendix B of ESRS 2. Where we have omitted the information prescribed by a datapoint that derives from other EU legislation listed in Appendix B of ESRS 2, the information in question is not material."
The index covers ESRS 2 general disclosures and the material topical standards E1 (climate change), E2 (pollution) and S1 (the Company's workforce) only; it carries no rows for E3, E4, E5, S2, S3, S4 or G1, consistent with those topics' non-material status under the 2023/2024 double materiality assessment. Within the covered standards, several datapoints are themselves flagged "not material" or "Phase-In" rather than answered (E1-7, E1-8, E2-4, E2-5 not material; E1-9, E2-6, S1-7 phase-in).
The materiality of every topic in the statement was determined under ESRS 1 section 3.2; the threshold values used were validated against DEUTZ's strategic direction and did not change on review.
E1 – Climate Change
E1-1Transition plan for climate change mitigationReported
Transition plan for climate change mitigation
Reference: page 111.
DEUTZ's full disclosure under this requirement: "We do not currently have a transition plan, but intend to publish one in 2030."
No decarbonization levers, locked-in emissions assessment, CapEx/OpEx alignment, or EU Paris-aligned Benchmark exclusion statement is presented here (benchmark exclusion is addressed, in the negative, under GOV-3/E1-4 context elsewhere in the content index's Appendix B table). The actions DEUTZ does take in the meantime - LED retrofits, photovoltaic installations, cold-testing, HVO-compatible engines - are disclosed separately under E1-3, not framed as part of a transition plan.
E1-2(was covered under ESRS 2 IRO-1)Identification of climate-related risks and scenario analysisReported
Identification of climate-related risks and scenario analysis
Back-filled from ESRS 2 IRO-1 (pages 107-108), where this content is disclosed in the FY2025 report. This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.
Physical risk: DEUTZ analyzes hazard vulnerability ("rising temperatures, heat waves, and water shortages") per Commission Delegated Regulation (EU) 2021/2139, using a high-emissions scenario (RCP 8.5) aligned with IPCC findings, location-specific (30km resolution, external provider) over short-term (to 2030) and medium-term (2030-2050) horizons; long-term was excluded as "not relevant due to the increasing uncertainties." Result: the Morocco site is particularly vulnerable to chronic water stress, a material physical risk to its ability to operate.
Transition risk/opportunity: assessed via TCFD classification using a scenario aligned with limiting warming to 1.5°C, over the same two horizons, drawing on an NGFS "Net Zero 2050" scenario examination of carbon price and energy-supply investment to 2100. Rising carbon prices are expected to reduce demand for diesel engines and increase demand for NewTech products.
No explicit global-average-temperature-projection figure or named alternative scenario (beyond RCP 8.5/Net Zero 2050) is given, and DEUTZ states: "We intend to identify the climate-related physical risks in our upstream and downstream value chain in 2026," implying the current scope is largely own-operations.
E1-3(was covered under ESRS 2 SBM-3)Resilience in relation to climate changeReported
Resilience in relation to climate change
Back-filled from ESRS 2 SBM-3 (page 111, following the climate risk analysis described under IRO-1). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.
"The resilience analysis carried out in 2025 assessed how resilient our organization and our sites are to these risks." For physical risk (heat waves and water stress at the Morocco site): "while existing actions provide basic resilience, there is room for improvement when it comes to safeguarding the ability to operate in the long term. In some cases, short-term adjustments to business activities would require significant financial resources." For transition risk: DEUTZ assesses itself as "generally flexible in our product portfolio and can respond to shifting demand," but states it "need[s] to continue monitoring this closely."
No quantified capacity-to-adapt figures (e.g., capital redeployment amounts) are given, and no separate timing/update cadence for the resilience analysis itself is disclosed beyond "the resilience analysis carried out in 2025." Critical assumptions and uncertainties are cross-referenced to the climate risk analysis under IRO-1 rather than restated.
E1-4(was E1-2)Policies related to climate change mitigation and adaptationReported
Policies related to climate change mitigation and adaptation
Reference: page 111.
"We are currently in the process of developing our sustainability strategy and therefore do not have any specific policies in place at the moment to manage the material impacts, risks, and opportunities that we have identified in connection with climate change mitigation and adaptation. The strategy process began in 2024; the focus in 2025 was on defining the specific content and operationalizing it."
No named policy document, accountable owner, or scope statement exists for this DR; policy content is explicitly deferred pending the still-in-development sustainability strategy.
E1-5(was E1-3)Actions and resources in relation to climate change policiesReported
Actions and resources in relation to climate change policies
Reference: pages 111-112.
Pursuant to ESRS 2 MDR-A, DEUTZ's 2025 climate actions: ongoing energy-efficiency projects (phased LED retrofits at production sites; roof refurbishment at the Zafra, Spain site); a new 1,000 kWp photovoltaic system at the Cologne-Porz headquarters (commissioning start of 2026) and a 99 kWp system at Herschbach, already operating; expanded use of cold testing for diesel engines (running diagnostic programs "with hardly any fuel being used," versus conventional hot testing); and engines certified to run on HVO (hydrotreated vegetable oil) since 2022 for all EU Stage 5-or-higher turbocharged, charge-air-cooled models.
Resourcing: "We do not consider the investment and operating costs required to implement our existing and planned actions to be significant ... and consequently do not report them separately." Quantified effect: "The reduction in emissions for the actions is 0 tCO2eq because green electricity is purchased for electricity-based actions," with only a "minimal" and unquantified heat-emissions benefit expected from the Zafra roof work. "Further actions to reduce Scope 1, 2, and 3 emissions are still being developed and will be published together with our transition plan" (due 2030).
E1-6(was E1-4)Targets related to climate change mitigation and adaptationReported
Targets related to climate change mitigation and adaptation
Reference: page 112.
"We are currently pursuing a non-ESRS-compliant target aimed at reducing GHG emissions in relation to consolidated revenue by 2029. Specific emission reduction targets for Scopes 1, 2, and 3 will be published together with our transition plan in 2030."
The target - carbon emissions of the production sites (tCO2eq) relative to Group revenue - doubles as an LTI performance criterion (see GOV-3), but carries no disclosed percentage-reduction magnitude, no stated base year, and is explicitly flagged by DEUTZ itself as "a DEUTZ AG target; does not represent an ESRS-compliant GHG emission reduction target." No Scope 3 target, interim milestones, or decarbonization-lever dependency is disclosed. "We have not tracked whether our actions to address our material sustainability-related impacts and risks and to pursue opportunities are effective."
E1-7(was E1-5)Energy consumption and mixReported
Energy consumption and mix
Reference: pages 112-113.
Production-site energy consumption (extrapolated for sales/service locations using an office-employee factor), MWh:
| Metric | 2025 | 2024 |
|---|---|---|
| Crude oil and petroleum products | 17,384 | 17,854 |
| Natural gas | 28,536 | 26,393 |
| Purchased fossil electricity/heat/steam/cooling | 6,961 | 5,328 |
| Total fossil energy consumption | 52,880 | 49,575 |
| Share of fossil sources | 40.7% | 39.5% |
| Nuclear sources | 463 | 460 |
| Renewable fuel (incl. biomass) | 1,012 | 1,005 |
| Purchased renewable electricity/heat/steam/cooling | 73,498 | 73,089 |
| Self-generated non-fuel renewable energy | 1,985 | 1,238 |
| Total renewable energy consumption | 76,494 | 75,332 |
| Share of renewable sources | 58.9% | 60.1% |
| Total energy consumption | 129,837 | 125,368 |
The renewable share fell from 60.1% to 58.9% year on year (fossil share rose to 40.7%). Energy intensity for DEUTZ's high-climate-impact-sector activities (NACE 27.11, 27.2, 28.11) was 0.06 MWh/T€ net revenue (2024: a corrected 0.07, after a reporting error restated the prior figure from per-million-euro to per-thousand-euro revenue). Steam/heat/cooling received as "waste energy" from a third party's industrial process is booked as "purchased or acquired" energy; non-renewable hydrogen sits under "other non-renewable sources."
E1-8(was E1-6)Gross Scopes 1, 2, 3 and Total GHG emissionsReported
Gross Scopes 1, 2, 3 and Total GHG emissions
Reference: pages 113-115.
| Metric (tCO2eq) | 2025 | 2024 |
|---|---|---|
| Gross Scope 1 | 10,669 | 10,038 |
| Scope 2, location-based | 54,935 | 12,372 |
| Scope 2, market-based | 1,884 | 824 |
| Scope 3.1 Purchased goods and services | 741,136 | 541,968 |
| Scope 3.4/3.9 Upstream transportation and distribution | 16,902 | 21,400 |
| Scope 3.11 Use of sold products | 17,198,550 | 19,008,054 |
| Total Scope 3 | 17,956,588 | 19,571,152 |
| Total (location-based) | 18,022,192 | 19,593,562 |
| Total (market-based) | 17,969,141 | 19,582,014 |
Scope 3.11 (use of sold products) dominates the inventory at roughly 96% of total emissions and drove the year-on-year fall. Scope 2 location-based emissions more than quadrupled (12,372 to 54,935 tCO2eq); "94.59% of all electricity consumed had a green electricity certificate." GHG intensity fell from 10.80 to 8.82 tCO2e/T€ (location-based) and to 8.79 (market-based).
Method: Scope 3.1 uses weight-based (ecoinvent) and expenditure-based approaches; Scope 3.4 uses carrier carbon reports plus a 10% safety margin; Scope 3.11 ("Engine Cloud" data) extrapolates from 84.6% real-data coverage. Scopes 3.10, 3.14, 3.15 are excluded as not applicable. "81.11% of our Scope 3 greenhouse gas emissions are determined using primary data." No biogenic emissions were reported.
E2 – Pollution
E2-1Policies related to pollutionReported
Policies related to pollution
Reference: pages 115-116.
DEUTZ's pollution policy is framed around its product portfolio rather than a standalone pollution-prevention document: "Our policy is to adopt a technology-neutral approach as we take our drive portfolio forward and, in doing so, to promote more environmentally friendly off-highway solutions," aimed at helping end-users "avoid, or at least reduce, pollutant air emissions" (including NOx and SOx) from fuel combustion in use.
Two technology tracks implement this: an electrification strategy (introduced 2017) for a scalable electric-drive portfolio (climate-neutral, no particulate or NO2 emissions in use), and development of hydrogen internal combustion engines, which "primarily emit a clean exhaust gas, namely steam," with significantly lower NOx than diesel; DEUTZ joined the Hydrogen Combustion Engine Trucks (HyCET) research consortium in 2022 (funded by the German Federal Ministry for Digital and Transport) to test hydrogen engines in on-road trucking. "The most senior level in our organization that is accountable for the implementation of our policy ... is the DEUTZ Board of Management."
E2-2Actions and resources related to pollutionReported
Actions and resources related to pollution
Reference: page 116.
On the upstream impact (raw-material extraction/processing, principally steel and aluminum): "We have not currently established any IRO-specific actions ... The reason for the absence of actions in this regard is that steel and aluminum are core materials used in the products in our classic engine portfolio and no substitutes are generally available."
On the use-phase impact (air emissions from fuel combustion): since 2022, all turbocharged, charge-air-cooled engines meeting EU Stage 5 or higher have been designed and certified to run on alternative paraffinic diesel (HVO), letting end-users "considerably improve the carbon footprint" and cut local particulate/NOx emissions by switching fuel. "Our current portfolio of the aforementioned engines has already been designed to run on HVO, so we do not have any investment or operating costs in this regard at present."
E2-3Targets related to pollutionReported
Targets related to pollution
Reference: page 116.
For the upstream raw-material impact: "we have not currently defined any measurable, outcome-oriented targets because, as explained above, steel and aluminum are core materials used in engines and no substitutes are generally available. As no actions have been established for precisely this reason, it is not possible to track any actions in this regard."
For the use-phase HVO-compatibility action: "Our entire portfolio of turbocharged engines is already suitable for the use of HVO, so there are no further targets to be defined in this context. It is not currently possible to verify whether the end-users of our engines run their applications on HVO, so the effectiveness of this action cannot be tracked."
S1 – Own Workforce
S1-1Policies related to own workforceReported
Policies related to own workforce
Reference: pages 134-136.
DEUTZ's workforce policy centers on a single identified material impact - occupational health risk - addressed through DIN EN ISO 45001 certification at DEUTZ AG's German sites ("a successful ... monitoring audit of our German sites was conducted in 2025") and at the Zafra, Spain subsidiary (certified since 2019); the US, Moroccan, and two German subsidiary production sites are not certified under an occupational safety standard. Scope is limited to own operations and on-site workers - "our upstream and/or downstream value chain is not covered by the standard." The Board of Management holds overall responsibility; DEUTZ Sicherheit monitors implementation.
A groupwide human rights code (UN Guiding Principles, UDHR, ILO fundamental conventions) covers forced/child labor and employee rights, though "the issue of human trafficking and the age aspect are currently not explicitly mentioned." A three-stage LkSG risk-analysis process applies; three 2025 acquisitions were excluded, "scheduled for inclusion in 2026." A 2022 diversity policy underpins female-talent programs and the 2024 "InDEUTZ" DE&I initiative; Germany applies a 5% statutory disability-employment quota under SGB IX s.154.
S1-2Processes for engaging with own workforce and workers' representatives about impactsReported
Processes for engaging with own workforce and workers' representatives about impacts
Reference: page 136.
"Our employees are involved in managing both actual and potential impacts on our own workforce, either through their employee representatives or directly." Every employee can submit occupational-health-and-safety ideas through the Company's ideas-management process, or raise concerns with their line manager or the occupational safety specialist during safety inspections.
Broader representative engagement (works councils, employee-elected Supervisory Board members, the twice-yearly DEUTZ Pulse Check survey) is described under SBM-2, which this S1-2 disclosure cross-references rather than repeats.
S1-2(was S1-3)Processes to remediate negative impacts and channels for own workforce to raise concernsReported
Processes to remediate negative impacts and channels for own workers to raise concerns
Reference: pages 136-137.
"We do not currently have a formal process in place that governs the implementation of, or our participation in, remedial action in cases where we have caused material impacts on members of our own workforce."
Reporting channels exist and can be used anonymously: line manager, Chief Compliance Officer, compliance coordinators, HR, employee representatives, the Inclusion/Equality Officer, a self-hosted public whistleblowing system, or email/post/fax. Complaints are handled under a groupwide organizational policy, with the Chief Compliance Officer holding overall responsibility and a dedicated compliance committee (Chief Compliance Officer, Head of Legal, Head of Corporate Audit, Head of HR) investigating grave violations. "No procedure is in place to ensure the effectiveness of the aforementioned channels." Annual compliance e-learning/classroom training covers equal-treatment law (AGG) and, from 2025, a new groupwide code-of-conduct module.
S1-3(was S1-4)Taking action on material impacts on own workforceReported
Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions
Reference: pages 137-139.
As a DIN EN ISO 45001-certified company, DEUTZ runs a preventive, continual-improvement H&S management system; "around 68% of our employees are covered by it." Listed actions: internal ISO 45001 inspections (Cologne, Herschbach, Ulm, Zafra); quarterly risk assessments/safety inspections at German plants; accident analyses after every reportable accident; mandatory annual safety training; a quarterly Occupational Safety Committee; digital H&S software roll-out in Germany.
"Our most recent IRO assessment did not identify any actual material impacts related to our own workforce, and thus no remedial action had to be taken in this regard." Investment/operating costs for these actions are not considered significant enough to report separately. DEUTZ has no procedure to check whether employees are aware of, or trust, its reporting and grievance mechanisms, but states that individuals who raise concerns in good faith "must not be - and are not - disadvantaged or punished in any way."
S1-4(was S1-5)Targets related to own workforceReported
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
Reference: page 139.
"In 2024, we decided to track the effectiveness of our occupational safety actions in the future using the lost time injury rate (LTIR). However, we do not currently have any specific quantitative targets, nor do we track the effectiveness of our IRO-specific actions in any other way." Having reported LTIR for the first time in 2025, DEUTZ "aim[s] to define a specific LTIR target in 2026." The related recordable-incident rate (RIR) is tracked internally "up to the end of the loan term in 2028" because it is an ESG component of DEUTZ's sustainability-linked loan.
S1-5(was S1-6)Characteristics of the undertaking's employeesReported
Characteristics of the undertaking's employees
Reference: pages 139-140.
| 2025 | 2024 | |
|---|---|---|
| Female | 909 | 733 |
| Male | 5,029 | 4,382 |
| Total | 5,938 | 5,115 |
By country (50+ employees, >=10% of headcount): Germany 3,872 (2024: 3,213), Spain 478 (574), USA 678 (563).
Contract type (2025): permanent 5,751 (female 883, male 4,868); fixed-term 178 (female 26, male 152); on-call 9 (male 9).
Turnover: 653 employees left in 2025 (2024: 373); turnover rate 11.00% (2024: 7.30%). Figures are averaged from quarterly headcounts and "cannot be reconciled with the information in Note 35 in the consolidated financial statements," which reports FTEs rather than headcount. DEUTZ attributes the fixed-term contract decline partly to allowing contracts to expire amid an engines-business downturn.
S1-13(was S1-14)Health and safety metricsReported
Health and safety metrics
Reference: page 141.
| Metric | Employees 2025 | Employees 2024 |
|---|---|---|
| % covered by the H&S management system (ISO 45001, headcount basis) | 68.23% | 71.46% |
| Fatalities from work-related injury/illness | 0 | 0 |
| Number of reportable accidents at work | 77 | 87 |
| Rate of reportable accidents at work (LTIR) | 9.89% | 11.91% |
The 2025 figures exclude the SOBEK Group, acquired in the second half of the year. Notifiable work-related illnesses and days lost are marked "n.a. ... as we do not make any phase-in disclosures." External-worker figures are not specified for the same reason.
S1-16(was S1-17)Incidents, complaints and severe human rights impactsReported
Incidents, complaints and severe human rights impacts
Reference: page 140.
| Metric | 2025 | 2024 |
|---|---|---|
| Reported cases of discrimination | 8 | 4 |
| Complaints via employee concern channels | 16 | 12 |
| Severe human rights incidents | 0 | 0 |
| ...of which UNGP/ILO/OECD violations | 0 | 0 |
"The total amount of material fines, sanctions, and compensation payments in connection with the incidents and complaints listed in the table above amounted to €0.00 in 2025 (2024: €0.00)" - for both the discrimination/complaints table and the severe human-rights-incidents table. "We are not aware of any complaints concerning our Company that have been submitted to national contact points for multinational OECD companies." Discrimination cases nearly doubled year on year (4 to 8) with no stated explanation.