Kuehne + Nagel International

Kuehne + Nagel International has set a target to reduce its scope 1, 2 and 3 emissions by 33% by 2030 compared to 2019. The Science Based Targets initiative (SBTi) has validated that this target is consistent with a well below 2°C pathway. The alignment of the targets with the company’s 1.5°C pathway could not be assessed as the company does not disclose activity data. Long-term targets with intermediate targets would strengthen the company’s commitment to a low-carbon transition.

Kuehne + Nagel International is a member of several environmental initiatives such as Clean Skies for Tomorrow. It has shown its support for the Paris Agreement by setting science-based targets. However, the company does not disclose a list of trade associations it is a member of. It does not have a publicly available policy governing interactions with trade associations. The company can increase its credibility by implementing processes to withdraw from trade associations that oppose climate policies and by being transparent on its membership of trade associations.

Kuehne + Nagel International has not implemented board-level oversight of climate change. The Head of Sustainability has oversight of climate objectives and no members of the board were found to have significant expertise in the low-carbon transition. The company does not incentivise low-carbon performance through executive compensation. The company can improve by aligning its incentives with its decarbonisation commitments.

Kuehne + Nagel International collaborates with subcontractors to use more low-carbon fuel alternatives in its operations. For example, the company has an agreement with American Airlines to deploy 11 million litres of sustainable aviation fuel (SAF). The company lacks robust data on the future emissions intensity of subcontracted transport services. It is in the process of developing a new supplier questionnaire to obtain responses for environmental aspects. Questions related to future emissions intensity should be included in the questionnaire. Assessing the collected data and setting emissions reduction criteria will allow Kuehne + Nagel International to align to its 1.5°C pathway more easily and meet its scope 3 SBTi target.

Kuehne + Nagel International has set a well below 2°C SBTi target to reduce its absolute scope 1, 2 and 3 emissions by 33% by 2030 compared to 2019. The company has not set long-term emission reduction targets. It has committed to using 10% SAF by 2030.

Kuehne + Nagel International has signed an SAF Blending Mandate to use 10% SAF by 2030. The company has signed the ‘Call to Action for Shipping Decarbonisation’ that aims for zero emissions vessels and fuels to become the default choice for shipping by 2030.

Kuehne + Nagel International collaborates with subcontractors to increase the use of SAFs and biofuels in its operations.

As the company’s main activity is subcontracting, the majority of its emissions are scope 3. Since 2019, the company’s scope 3 emissions have only slightly declined from 16.60 to 16.40 million tonnes. The company does not disclose sufficient activity data to assess its past emissions intensity.

Kuehne + Nagel International’s SBTi target is supported by its collaboration with subcontractors to include SAFs and biofuel in their operations. However, the company’s long-term ambition is undermined by its lack of detailed strategy and financial commitments to the development of these low-carbon alternatives.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No evidence within policy documents was found of a company commitment to respect human rights or to respect all of the ILO fundamental rights at work. Furthermore, the company can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders. While the company has a grievance mechanism available to workers, no relevant disclosure was found regarding a grievance mechanism available to all external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. While the company has a target of doubling the number of females in leadership positions by 2030, no evidence was found of a commitment to gender equality and women’s empowerment in the broad sense. The company discloses the proportion of its direct workforce covered by collective bargaining agreements and some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, it can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

While the company has a policy prohibiting bribery and corruption, no relevant disclosure was found regarding corresponding clauses in its contracts with business relationships. The company specifies that it does not make political contributions, but it can increase disclosure on its lobbying activities. Furthermore, the company can strengthen disclosure regarding its global tax strategy and protection of employees’ and customers’ personal data.