_{Sustainability at Ken-Mac Metals and thyssenkrupp Steel Services}

Our strategy: Materials as a service

The growing demand for sustainable products and solutions, resilient supply chains, and nearshoring shows that our ability to agilely respond to the needs of our customers is of utmost importance. For this reason, too, we are continuing to develop from purely a supplier of materials and services into a supply chain manager that offers “materials as a service.”

This approach enables us to develop strong, scalable solutions that allow our customers to concentrate on their core business – while we provide them with the certainty that the right products and solutions are available to them in the right quality in the right locations.

Our mission: “Connecting smarter”

Efficient processes, transparent climate data, and the intelligent networking of all relevant partners and parameters – with “Connecting smarter,” we have made this our mission. We want to be able to manage even the most complex commodity flows in a resource-efficient manner. A precondition for this is a strong culture of innovation and the willingness to set out in new directions. We enable our employees to bring about transformation by making our networks stronger, our processes more agile, and our cost structures more efficient. These efforts will lead to our company's productive and sustainable future.

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Our stance: Assume responsibility

As one of the country’s leading materials distribution and service provider, we assume responsibility with our customers, suppliers, employees, and society as a whole – and we back this up by means of compliance and management systems.

thyssenkrupp has a comprehensive understanding of compliance. For us, compliance is more than just the self-evident observance of rights, internal regulations, and laws. Rather, it creates the framework for our actions as a company and serves us as a sustainable basis on which to secure our business success. Compliance means consistently putting into practice our core values: reliability, sincerity, authenticity, and integrity.

We expect our partners to fulfill all relevant ethical and legal standards as well. In implementing the requirements of the German Supply Chain Due Diligence Act, we contribute to the protection of human rights along the supply chain.

For our own actions, we have implemented management systems including ISO 9001, ISO 14001, IATF 16949, and AS 9100D. We evaluate our conduct and introduce improvements in this area through regular internal and external audits, and we provide ongoing employee training.

Has thyssenkrupp committed to emission reduction targets with the Science Based Target Initiative (SBTi)?

Yes, thyssenkrupp AG has committed to near-term and long-term emissions reductions targets, both of which are in the process of being validated by SBTi. By 2030, we aim to reduce our Scope 1 & 2 emissions by 50%* and reduce our Scope 3 emissions by 30%**. By 2050, we aim to have a 100% reduction in Scopes 1, 2, and 3 emissions, in line with an emission reduction pathway of a “1.5°C future”.

The Materials Services segment within the thyssenkrupp group contributes to these targets. Also, Materials Services is committed to a more ambitious near-term target of reducing Scope 1 & 2 emissions by 100%* by 2030 on segment level, which the Coil Processing Group is actively pursuing.

* compared with the base year FY17/18

** compared with the base year FY16/17

Ratings underline leading ESG position of thyssenkrupp Group

Responsible Procurement

Human rights, fair working conditions, environmental protection and the battle against corruption – these are values that we hold high within our Group and throughout our supply chain. We at thyssenkrupp are committed to the United Nations Global Compact.

In order to manufacture and provide our products and service solutions, we source raw materials, goods and services globally and expect our suppliers to meet the highest standards of sustainability, both at their own companies and within their local and global supply chains. In this context, we place a special focus on continuously improving working conditions, protecting human rights and the environment, as well as fair conduct and sustainable business practices within the supply chain. Another focus of our sustainability activities is reducing carbon emissions along the entire product life cycle, from development and production to recycling. We have laid down the standards we demand of ourselves in terms of fairness, integrity, and sustainability in the thyssenkrupp Code of Conduct.

We have tightly integrated responsible business practices into our procurement processes. Contract award decisions are made not only in accordance with legal, financial, technical, and procedural criteria, but also on the basis of social, environmental and ethical criteria. That is why sustainability plays an important role at thyssenkrupp in our collaboration with suppliers. The thyssenkrupp Supplier Code of Conduct (SCoC) addresses our expectations of suppliers and their subcontractors on the basis of legal requirements, comparable regulations in other countries, international agreements and principles and our own sustainability standards. The SCoC will be refined and updated by thyssenkrupp as soon as any new material sustainability requirements make this necessary.

Will thyssenkrupp sign our Supplier Code of Conduct?

Thank you for sharing your Supplier Code of Conduct with our company. We would like to assure you that as part of the thyssenkrupp Group, we have a robust compliance program and are confident that the manner in which we govern our organization meets your expectations of us as a business partner. In lieu of our acceptance of your Code of Conduct, we welcome you to please visit our website and review our Code of Conduct and our Supplier Code of Conduct, both of which highlight our commitment to operating at the highest of business standards.

Should you need additional information, please do not hesitate to reach out to our team at cpg.sustainability@thyssenkrupp-materials.com.