Achieving our strategic and operational objectives involves managing potential and actual risks. The Kuehne+Nagel integrated risk management system addresses these risks across the company’s operations. This system helps us align these risks and opportunities with our strategic objectives and protect the organisation from future uncertainties. This is in addition to increasing the probability of success in achieving our corporate goals and improving decision-making across the organisation. It is also an essential element in driving a risk-aware culture across the organisation. More about Kuehne+Nagel’s risk management can be found in the Annual Report 2021, page 102.
For more details about the capital market sustainability ratings relevant to us, please see our 2018 Sustainability Report, page 6.
Kuehne+Nagel follows the Swiss Association for Responsible Investments (SVVK-ASIR) recommendation to act responsibly towards the environment, society, and the economy. Business-critical activities are carefully reviewed and assessed on an annual basis that may potentially jeopardise the aspects of good business practices. For the past year, none of the critical business activities reached a threshold of more than five per cent of the group’s annual revenue.
| in per cent | of revenue 2021 | of revenue 2020 |
|---|---|---|
| Alcohol | 0.7 | 1.8 |
| Defence/weapons | 0.8 | 1.3 |
| Tobacco | 1.1 | 0.9 |
| Adultery entertainment, coal, firearms, gambling, GMO, nuclear energy, oil sands | – | – |
A business continuity and disaster response is essential to be prepared and manage a crisis at occurrence. People, assets and IT infrastructure can be managed in a prepared manner to safeguard these by defined processes and responses (fire, flood, earthquake, pandemic, civil unrest, etc.). Every national organisation is equipped with a business continuity plan that is regularly reviewed and updated. As part of governance, the business preparedness, resilience and disaster response is also addressed in the materiality matrix and key for customers and external partners.
Kuehne+Nagel complies with the ISO 22301 Business Continuity Management (BCM) and the ISO 27001 Information Security standards, our global business impact analysis and definition of critical processes. In 2021, we improved our internal Incident Reporting and communication escalation matrix that allows us to better react to potential emergency reports.
During the COVID-19 pandemic, management received reports weekly, to be able to manage the crisis situation on a country, regional and corporate level. At the peak of the pandemic we had 128 locations closed due to national regulations but were able to service our customers from remote / mobile work. Additionally, our crisis communication was updated four times to improve the flow of information.
Target
With the experience from the pandemic and other emergency situations, a work group is proposing potential upgrades and enhancements by 2022, such as for an integrated BCM approach, monitoring training, evacuation and updates of national business continuity plans.