KNDS ESG Strategy and Governance

KNDS ESG strategy is action-driven, coming from its highest level of the Group.

On a quarterly basis, the Executive Committee discusses key ESG topics during dedicated working sessions covering ambitions and action plan deployment, facilitated by KNDS’s Chief Financial Officer, which has been appointed as Group ESG Coordinator. Further, Executive Committee members act as ESG topic owners for material ESG topics. ESG topic owners are responsible for the definition of the Group policies, ambitions and roadmap, the implementation of action plans, as well as the monitoring of the performance.

KNDS’s Chief Financial Officer is supported by the Group ESG central team and is responsible for the preparation and audit process of the Group’s sustainability statement. The Chief Financial Officer and Chief Executive Officer of KNDS will report to the Board (via the Audit, CSR and Compliance Committee) on the ESG roadmap, its deployment, and Corporate Sustainability Reporting Directive (“CSRD”) readiness until the issuance of the Group’s first sustainability statement in accordance with CSRD.

Board of Directors

Executive Committee

Quarterly discussion of key ESG topics during dedicated working sessions facilitated by CFO as Group ESG Coordinator

Executive Committee members appointed as ESG topic owners for material ESG topics

CFO & CEO report to board on deployment of ESG roadmap & CSRD readiness

CFO acts as group ESG coordinator supported by cross-functional ESG topic owners

ESG Central Team

ESG Central Team consists of people at corporate & subgroup level

Head of ESG Central Team reports directly to CFO & informs the ACC1

Weekly alignment calls & regular reporting to ESG topic owners

ESG central team supports CFO in fulfillment of his ESG tasks

ESG topic owners are responsible for the definition of group policies & roadmap as well as the implementation of action plans & monitoring of the performance

Compliance & Risk Management

Compliance management system

Risk management system

Internal control system

COSO ERM3 model implemented 2025 across the group for comprehensive risk management

Strong ESG Governance

Ensuring the safety and well-being of soldiers and maintenance personnel as end-users of its products is the Group’s top priority and deeply embedded into all its processes, from product design over procurement, and production to testing and delivery with customer training as key part to ensure safe usage of its products.

Neither KNDS N.V. nor any of its subsidiaries or jointly owned companies develop, produce or distribute biological, chemical or nuclear weapons, anti-personnel mines, cluster munitions or depleted uranium ammunition. The Group has no intention or plan to engage in any such activities in the future.

Board with extensive defense experience:

Balanced board composition with extensive experience setting the foundation for strong oversight and control.

Strong (ESG) governance

Striving to meet the highest governance and compliance standards with ESG deeply embedded into the Group’s business practices and operations.

KNDS as a responsible employer

Creating an inclusive and safe work environment to attract, promote and retain talent as a sought-after employer.

Enhancing environmental sustainability

Strong commitment to minimising the environmental impact of the Group’s operations and products across the value chain.

Reporting readiness

Timeline

KNDS is actively preparing for the implementation of the requirements under the CSRD. A structured implementation roadmap has already been established to ensure timely and full compliance with the Group’s applicable CSRD obligations. The roadmap includes the identification and documentation of material sustainability topics through a DMA (impact materiality and financial materiality), the integration of an ESG governance structure, the enhancement of internal controls, data collection processes and reporting systems, the integration of CSRD requirements into the Group’s existing risk management and governance framework, and preparation for the required external assurance process.

2022Implementation of non- financial reporting roadmap
2023Initial DMA
2025Completion of DMA
2025CSRD dry-run covering all ESRS standards related to material topics identified in DMA
2026Publication of KNDS’s first ESG factbook
2026Definition of decarbonization: roadmap including measurable GHG reduction targets
2027Publication of integrated report aligned with CSRD and ESRS based on 2026 performance

DMA description

In 2025, KNDS updated its DMA. The DMA was reviewed and approved by the CEO of KNDS, the CEOs of KNDS Deutschland and KNDS France and the Group’s Board of Directors. The DMA was also preliminary reviewed by KNDS’s auditor.

The methodology followed is compliant with the EFRAG guidelines and is based on an individual scoring of each Impact, Risk, and Opportunity (IRO).

Based on insights to date, the updated DMA establishes the current list of material ESG topics for the Group, as set out in the table below and explained in further details in the ESG factbook.

ESRS and ESG substream:

Climate Change Mitigation
Climate change Adaptation
Energy