Invest sustainably

Current status at INDUS

Sustainable practices are deeply entrenched in INDUS’ DNA and are firmly rooted in its corporate strategy. The company incorporated the assessment of target companies’ sustainability performance into its M&A due diligence process years ago. INDUS has drawn on the successful innovation development bank model and created a sustainability development bank. Since 2022, this sustainability development bank has been supporting projects that further improve the sustainability performance of the portfolio companies. Our ISS rating enabled us to issue an ESG-linked promissory note for the second time in 2022. The Board of Management compensation system was also expanded to conform to ARUG II sustainability components.

INDUS applied the EU Taxonomy Regulation for the first time in the 2021 financial year and has identified taxonomyeligible economic activities. Since early 2022, the EU Taxonomy Regulation has laid out standards for ecologically sustainable business activities.

Since January 1, 2023, INDUS Holding AG has also been subject to the Supply Chain Act, which aims to improve the international human rights situation and obliges companies to create transparency in their supply chain and assume responsibility. Since the PARKOUR perform strategy update, the issue of sustainability has also been brought further into focus in the relevant future fields for future acquisitions. In addition, a new Strategy and ESG Committee was established in the Supervisory Board in 2023.

Key figures at a glance

Further key figures can be found in the nonfinancial report starting on page 19.

Recognition of our sustainability performance

INDUS was audited by renowned rating agencies. In the independent sustainability rating by Institutional Shareholder Services Inc., INDUS Holding AG achieved prime status in 2023 for the eighth time in a row In the international comparison group “Multi-Sector Holdings”, INDUS achieved the transparency level “Very High” and the overall rating “C+”. The assessment of “Corporate ESG Performance” is based on around 100 sustainability criteria from the areas of environment, social affairs and governance, which are specifically adapted to the starting position of the respective comparative industry.

MSCI: THE USE BY INDUS OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF INDUS BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

Always one step ahead

2016

Voluntary submission of first non-financial declaration & materiality analysis for the Group.
2017

More in-depth data in the non-financial declaration, external stakeholder dialogue.
2018

Qualitative consequences of climate-related effects according to TCFD (internal stakeholder perspective, managing directors surveyed).
2019

Group-wide energy audit carried out again, suppliers and customers of the portfolio companies surveyed by TU Dortmund.
2020

First ESG-linked promissory note, capital market sustainability survey sent out, change to accounting approach for Scope 1 and Scope 2 emissions with inclusion of portfolio companies.
2021

SUSTA[IN] is the first sustainability magazine to appear online.
2022

Fourth strategic initiative “Striving for Sustainability”, launch of the Sustainability Promotion Bank and publication of second SUSTA[IN] magazine.
2023

Establishment of a group-wide system to map the requirements of the Supply Chain Act and publication of the third SUSTA[IN] magazine.

INDUS action areas

In the 2021 financial year, the sustainability strategy was updated as a separate strategic initiative of the PARKOUR strategy program in order to bring new insights and approaches to the Group and to incorporate new legal and regulatory requirements. “Striving for sustainability” now complements the PARKOUR strategy as the fourth pillar. The Ten Principles of the United Nations Global Compact (UNGC) form the basis of the fundamental principles of the company’s strategic focus. INDUS has pooled these into five principles and used them to put together six action areas.

Environmental Issues | Protecting the Environment

INDUS is working full steam ahead to reduce its carbon footprint. The company is also monitoring its energy and waste intensity, recycling rate and total water withdrawal.

Target: Reduction in (net) GHG emissions to zero in 2045, 35% reduction in emission intensity by 2025 compared to 2018 base year.*

*(including emissions of all 48 portfolio companies through financial control approach)
Employee Issues | Fair Work

INDUS constantly works to maintain its position as an attractive employer.

For INDUS, protecting the health of its employees has top priority.

INDUS actively supports training and education for its employees.

Target for 2040: Less than 3 work accidents per 100 employees per year. No fatal work accidents.
Social Issues | Social Justice

For INDUS, avoiding disturbances in the surrounding area has top priority. This includes things like noise disturbance. INDUS encourages its employees to put forward suggestions for suitable charitable partnerships in the local area.

Target for 2040: No legitimate local complaints.
Respect for Human Rights | Human Rights

INDUS is committed to complying with the principles set out in the INDUS Code of Conduct, which voluntarily goes beyond legal requirements. INDUS expects its employees to behave in a legally and ethically impeccable manner toward fellow humans and the environment.

Target for 2040: All employees given a copy of the INDUS Code of Conduct.
Combating Corruption and Bribery | Honest Business

For INDUS, compliance with legal requirements is second nature (see INDUS Code of Conduct). INDUS is continuously refining its compliance management system.

Target for 2040: No significant fines, no non-monetary penalties, no payments to political parties.
Shareholder Support

INDUS Holding AG is available to the portfolio companies as a strategic sparring partner with various support options such as defining and achieving sustainability targets. Information on the topic of sustainability is regularly discussed at the annual Entrepreneurs’ Conference.