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 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.
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.
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
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
