Materiality approach
and progress

Assessing stakeholder
engagement (materiality matrix)

Materiality 2021
Kuehne+Nagel's materiality assessment is based on a continuous dialogue with stakeholders and we reassess our material issues every two years.

The process of identifying material issues

1. Inputs Identify economic, social and environmental topics with the Executive Board with their experience of importance on the topics.
2. Assessment Evaluate which topics are material to our organisation and stakeholders. Participating stakeholders are from: Executive Board, top and senior management of our organisation, customers, suppliers and Non-Governmental Organisations (NGOs).
3. Agreement Final set of material topics agreed based on analysis of relevance and potential impact and mitigating measures. The final decision comes from the Executive Board.
4. Reporting Sustainability Report

The 2021 materiality review contains the new assessment for 2021. The material topics are divided in four clusters:

The materiality assessment for 2021 included external and internal stakeholders, industry peer research, mapped regulatory risks and macro trends to support establishing a comprehensive sustainability issues landscape.

With reference to macro trends we elaborate and or focus on Zero waste (reduce packaging), Energy harvesting (solar energy), and Clean Tech (Bio fuel, wind). Ethical Consumption is likewise addressed with no plastic campaign and no food waste, and plays a role as a social component of the sustainability mega trends.

The assessment is used to help prioritise our resources and investments in the context of the changing business environment and importance to external stakeholders. We identified four clusters for 16 material issues (see matrix below)

Responsibility: After analysing the issues, the main focus topics in alleviating the potential negative impact Kuehne+Nagel could have on people or the environment are: business integrity; occupational safety and health; employee satisfaction and retention; human rights & diversity and equal opportunities; business preparedness, resilience and disaster response.

Risk: For the risk for our business reputation and financial risk, we identified the following issues: business integrity; customer relations and satisfaction; data privacy and security.

Internal engagement for materiality assessment
We engaged with senior and top-level Kuehne+Nagel executives and employees from all parts of the business (Operations, Compliance, Procurement, Corporate Development, Sustainability Regional Specialists) in an internal survey to hear opinions on which issues are important for Kuehne+Nagel's business. The number of responses was 75.

External engagement for materiality assessment
We engaged Kuehne+Nagel’s external stakeholder groups, such as Customers, Suppliers, NGOs in an external survey to provide us with opinions of what issues are important in their relationship with Kuehne+Nagel. The number of responses was 138.



responses from our senior
and top-level executives and


responses from our external
stakeholder groups for
our materiality assessment


Material matrix and most material topics

Materiality matrix 2021
Ranked issues across internal and external stakeholders

Grouping the key topics for internal and external stakeholders reveal a matching of five top rated material topics. Two material topics were ranked with low importance for both stakeholder groups. The rating is relevant to further assess and align the group’s activities.

As the scores indicates, here are the top rated issues across internal and external stakeholders:

Defined three issues with the lowest importance for internal and external stakeholders:

In comparison to the previous materiality matrix made in 2019, governance and social topics outweigh environmental and value chain topics for both groups. The reasons for this shift may be related to the uncertainty of the pandemic development.

In 2021, Kuehne+Nagel committed to the Science Based Target initiative (SBTi) and to reduce absolute scope 1, 2 and 3 GHG 33% by 2030 from a 2019 base year. With this commitment Kuehne+Nagel intends to better communicate and drive the climate change discussion.