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UNITED NATIONS GLOBAL COMPACT

COMMUNICATION ON PROGRESS REPORT
KNORR-BREMSE GROUP 2013
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Contents

1/ Statement of continued support 3

2/ Knorr-Bremse Group 4

3/ Human rights 6

4/ Labor standards 9

5/ Environment 18

6/ Anti-corruption 26

7/ Overview 28
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1/ Statement of continued support

Ladies and gentlemen,

Knorr-Bremse is a family-owned business that is rich in traditions and has a history of developing solutions
for rail and commercial vehicles that goes back more than 100 years. Our corporate culture is characterized
by shared values and standards of conduct that have helped determine the company’s long-term success
and positive development in recent decades and which we intend to maintain in the future.

“We are the world’s driving force for innovative and sustainable system solutions that make rail and com-
mercial transport safer, more reliable and more efficient. We are driven by our ambition to create value for
our customers and to have a positive impact on society“. This is how our vision was reformulated during the
course of the year under review. In its role as technology leader, Knorr-Bremse aims to continue setting
standards in the global market. As a manufacturer of safety-critical technologies on which more than a
billion people around the world depend every day, we regard thinking and acting responsibly as an inte-
gral part of our day-to-day core activities.

During the course of the past year we introduced a binding, Group-wide Code of Conduct in which we
explicitly commit to compliance with statutory regulations and internal guidelines, diversity and equality
of opportunity, fair working conditions, partnership and cooperation with customers and suppliers, climate
and environmental protection and social responsibility. Over the year under review we were able to achieve
further successes in the field of labor standards through projects to promote our corporate and leadership
culture and to protect the environment in our production processes.

This third Global Compact Progress Report provides a transparent and detailed account of how we imple-
ment and document the ten principles of the UN Global Compact. We do not shrink from identifying areas
where there is still room for improvement and further action.

Knorr-Bremse continues to be committed to supporting and driving forward the process of applying the
ten principles over the coming year.

Dr. Michael Buscher

Chairman of the Executive Board of Knorr-Bremse AG
4 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

2/ Overview of the Knorr-Bremse Group

The Knorr-Bremse Group, with its headquarters in Munich, is the world’s leading manufacturer of braking
systems for rail and commercial vehicles. For more than 100 years now, the company has pioneered the
development, production, marketing and servicing of state-of-the-art braking systems. In the rail vehicle
systems sector, this company has a long tradition of supplying state-of-the-art products for local public
transport vehicles such as metros and streetcars as well as freight trains, locomotives, passenger trains and
high speed trains.

In addition to braking systems, the product portfolio includes intelligent access systems, air conditioning
systems, control components and windscreen wiper systems, as well as platform screen doors, friction
materials and driver advisory systems. Knorr-Bremse also offers driving simulators and e-learning systems
for optimum train crew training. In the commercial vehicle sector, its innovative solutions range from com-
plete braking systems including driver assistance systems (for example, ABS and ESP) to torsional vibration
dampers, powertrain-related solutions and transmission control systems for enhanced energy efficiency
and fuel economy.

With all its products Knorr-Bremse contributes significantly to safety on road and rail the world over. More
than a billion people worldwide rely daily on Knorr-Bremse systems.

The Knorr-Bremse Group has both a divisional and a regi-

onal structure. Knorr-Bremse AG encompasses the glo-
bal Rail Vehicle Systems and Commercial Vehicle Systems
divisions as well as regional companies in Europe, North
America, South America and Asia-Pacific. This structure
allows Knorr-Bremse to respond to the specific require-
ments of the various regional markets while at the same
time generating synergies across different locations and
divisions.

Knorr-Bremse’s Corporate Responsibility (CR) strategy

approved in 2010 enables the company to adopt an inte-
grated and systematic approach towards realizing its re-
sponsibilities for the environment, its workforce and so-
ciety as a whole. As an essential element in the
Knorr-Bremse Group corporate strategy, the CR strategy
is based not only on the Group’s corporate values but also on the internationally recognized principles of
the UN Global Compact. The company has defined six areas for action and put these at the heart of its CR
strategy, developing and coordinating appropriate measures. The six areas are: CR management, products,
employees, environmental and climate protection, social commitment and CR communication.

Our understanding of sustainability was set out in our CR policy in 2013. In addition to defining the term, it
lays down the overarching aim of our commitment to CR and derives guidelines from these in the form of
six areas for action.
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The measures for these areas of action are planned on an annual basis using the CR Roadmap and coordi-
nated and driven forward by the CR Department. Decisions on individual measures and projects are made
by a steering committee – the CR Council – under the leadership of the Chairman of the Board and with
the involvement of the chairs of the executive boards of the two divisions and the Vice-President of the CR
Department.

To strengthen the global exchange between the regions, an international network called the CR Round
Table has been created that encompasses the entire Group. The task of this network is to regularly ex-
change information with internal CR representatives across regions and divisions about strategic objec-
tives, current CR projects and operational implementation measures.

You can find further information about our CR strategy and CR management system in the 2012 Annual
Report or on our webpage: www.knorr-bremse.com/responsibility

SUPERVISORY BOARD

Planungszirkel
EXECUTIVE BOARD

reports to

license to operate CR COUNCIL

CORPORATE CEO, managing director of Rail
RESPONSIBILITY (CR) Division, managing director of
DEPARTMENT Commercial Vehicles,
reports to
departmental management CR

Information exchange
Programming of operational measures

KNORR-BREMSE GROUP
 Q Corporate Responsibility Round Table
 Q Cooperation with specific divisions depending on priority subject
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3/ Human rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights and

Principle 2: make sure they are not complicit in human rights abuses.

Knorr-Bremse respects the protection of human rights and makes sure that it is not complicit in human
rights abuses. We are committed to respecting the principles of the internationally recognized standards
contained in the UN Global Compact, the International Labor Organization (ILO) Conventions and the UN
Universal Declaration of Human Rights. These voluntary commitments underpin our activities in conjunc-
tion with the relevant national legislation. Respect for and compliance with human rights at the various
sites is subject to random auditing by the “Internal Audit” staff function at Knorr-Bremse. No infringements
were identified at any of the sites audited during the year under review.

Code of Conduct
As a global technology leader, it goes without saying that the Knorr-Bremse
Group always conducts itself in a correct, responsible and exemplary man-
ner. In this context we have developed a Group-wide Code of Conduct
based on existing local guidelines. The Code of Conduct summarizes our Code of Conduct
principles and rules and is binding for every employee within the Knorr-
Bremse Group. It means that we now have an internationally standardized
concept of what constitutes responsible corporate behavior. The Code of
Conduct is based on the ten principles of the UN Global Compact and expli-
citly reiterates our commitment to respect for human rights, fair working
conditions, environmental protection and respect for the law.

At the end of 2012 the Knorr-Bremse Code of Conduct was publicized to

Knorr-Bremse employees world-wide as part of a broad-based communica-
tion campaign involving personal letters to employees, a special brochure, articles in the in-house magazine
“KB-aktuell” and on the Intranet.

In the coming year the focus will be on developing additional structures and instruments to support com-
pliance with the Group-wide Code of Conduct. In addition to ongoing communication, the development
of appropriate training measures will play an important role in this context.
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Procurement guidelines
Knorr-Bremse is concerned to ensure that its commitment to responsible conduct is also applied through-
out the supply chain. For this reason we have started to integrate sustainability aspects into the Group’s
procurement structures. In both divisions – Rail Vehicle Systems and Commercial Vehicle Systems – we
have revised the quality management guidelines for procurement and added requirements regarding im-
plementation of the ten principles of the UN Global Compact. These quality management guidelines for
procurement contain provisions aimed at continuously improving processes, quality, environmental com-
patibility and productivity in close collaboration with suppliers, and these requirements form part of con-
tractual agreements with all suppliers of production materials.

Sustainability criteria have also been incorporated into the indirect procurement guidelines, and when
selecting suppliers we also consider their activities regarding environmental compatibility and social re-
sponsibility.

Should a supplier fail to comply with these standards, Knorr-Bremse reserves the right to review the relati-
onship with that supplier for future transactions and enquiries and, if necessary, to terminate it.

To support implementation of these guidelines we have added a series of questions relating to the ten
Global Compact principles to the relevant supplier evaluation questionnaires. This systematic audit process
enables us to verify the extent to which our suppliers are implementing the ten principles. If necessary re-
commendations are made and measures to support improvement and implementation are taken.

In the Rail Vehicle Systems division, 50 suppliers were reviewed on the basis of the Global Compact principles
during the course of the year under review. No grounds were found for terminating the relationship with
these companies.

Health & safety management

Workplace health and safety are important priorities for Knorr-Bremse, and are fully integrated into the
company’s business processes. The Health, Safety and Environment (HSE) department is responsible for all
health & safety measures in compliance with central requirements.

Knorr-Bremse organizes a wide range of activities aimed at raising awareness of health issues amongst its
employees all over the world. We hold regular “health days”, carry out occupational health checks and analyses
of workplace conditions and organize a range of other activities. Many sites even offer a comprehensive
sports program including fitness courses, company sports equipment, team and group sporting activities
and special health checks for managers. We also encourage participation in external sporting events.

Knorr-Bremse’s Health, Safety and Environmental policy underpins our systematic approach to managing
health & safety in the workplace. Standardized processes and regular internal audits ensure that minimum
standards are in place across all our world-wide operations. The key areas addressed by our safety manage-
ment system include comprehensive site, workplace and work process risk assessments, employee training
8 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

and information campaigns to promote awareness of safety issues, as well as thorough analyses of any
accidents, followed by introduction of the relevant preventive measures.

Our health & safety indicators bear witness to the results of our efforts. For example the number of lost-time
accidents per 200,000 working hours has remained at a low rate, and the number of working days lost has
been reduced by some 30% compared with 2010.

2010 1.2
2011 1.0
2012 1.1

Number of workplace accidents per 200,000 employee

working hours

Knorr-Bremse attaches great importance to external certification of its management systems in accordance
with international standards. In the Rail Vehicle Systems division some 63%* of production and service sites
worldwide are certified to the OHSAS 18001 (Occupational Health & Safety Assessment Series) standard –
and all sites in Europe have certification. Our aim is to achieve step-by-step external assessment of more
non-European sites.

During the year under review, the companies Knorr-Bremse CARS LD Vehicle Brake Disc Manufacturing and
Knorr-Bremse / Nankou Air Supply Unit in China, together with Knorr-Bremse Rail Services (Burton) Ltd. in
the UK also achieved OHSAS 18001 certification for the first time. Further sites will be included step-by-step
in the certification process over the coming years.

Sustainable support world-wide with Knorr-Bremse Global Care

A regular income, a roof over your head, access to medical treatment and education – these are all things
that cannot be taken for granted in many countries of the world. Since 2005 the charitable organization
Knorr-Bremse Global Care e. V. has been supporting people who, through no fault of their own, find them-
selves in need as a result of environmental disasters, accidents, armed conflict, poverty or illness. The cen-
tral aim of the organization is to improve their lives and help them to achieve greater independence by
enabling them to support themselves and determine their own lives. The principle of helping people to
help themselves applies throughout.

At the same time we want to raise awareness of social responsibility amongst employees of the Knorr-
Bremse Group and encourage them to become actively involved themselves. This way they can operate as
multipliers and spread the idea of making a personal contribution to the outside world. We see ourselves
as partners who contribute our time, skills and experience to projects as well as financial resources.

Further information and examples of projects can be found on the Internet at

www.global-care.knorr-bremse.com

* The figure differs from the one contained in the 2012 report (71%): integration of new sites into our management system resulted in the reference figure
changing. Multiple counting of sites with spin-off divisions continued in 2012.
9 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

4/ Labor standards

Principle 3: Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining and furthermore uphold

Principle 4: the elimination of all forms of forced and compulsory labor

Principle 5: the effective abolition of child labor and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Knorr-Bremse respects and protects the rights of its employees and has made its own clear commitments
in this regard: Compliance with high standards for a safe and healthy working environment, fair working
conditions, the right to freedom of association and active promotion of equal opportunities and equal
treatment for our employees throughout the world all form a key part of our corporate responsibilities.
We are categorically opposed to all forms of forced and child labor.

Monitoring the ten UN Global Compact principles

Mindful of our commitment and in a bid to assess implementation of the principles of the Global Compact,
we have introduced an internal monitoring system. In 2011 we launched a global survey of compliance
with the ten principles. A total of 33 major production sites covering all countries in which Knorr-Bremse
operates were asked about the extent to which the principles had been fulfilled. In addition, internal audits
on implementation of the Global Compact principles were carried out at selected sites in China, India and
Russia. The aim of the survey was to establish which systems and local approaches to meeting labor,
environment and social standards as well as human rights had been implemented and in which areas
there was scope for improvement. We have summarized some of the survey results in the table that follows.
10 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Results of Global Compact survey 2011/2012:

Global Local Room for improvement Status 2013

Compact implementation identified by sites and next steps
Principle

Principle 1: Q Compliance with national Q Group-wide Code of Q Group-wide Code of Conduct

Supporting legislation Conduct developed 
human rights Q Application of local Q Expansion of internal Q Roll-out and communication
Code of Conduct training throughout the Group during the
year under review 
Q Training of all employees (esp. in
the case of new appointments «

Principle 2: Q Integration of sustainability Q Global approach to Q Integration of Global Compact

Avoiding human aspects into supplier audits, sustainable procure- Principles into quality manage-
rights abuses contracts and programs at ment management ment guidelines for procurement
individual sites Q Ongoing implemen- in both divisions and in 
Q Application of Group-wide tation of supplier Q assessment management for new
procurement guidelines audits with regard to suppliers:
application of the ten Q Rail Division: supplier self-
principles declaration 
Q Truck Division: supplier risk
assessment 
Q Audit results now have to be
analyzed more closely and ap-
propriate measures drawn up «

Principle 3: Q Active trade unions and as- Q Continuation of current Q Continuation of current efforts «
Upholding sociations at various sites efforts
freedom of Q Collective negotiations
association Q Constructive dialogue with
works councils

Principle 4: Q All employees have written Q Incorporation of Q Continuation of current efforts

Eliminating all employment contracts principles of UN Global (see above) «
forms of forced and job profiles. This is Compact into supply
labor also formally regulated in chain management
internal HR processes and
documentable through our
HR systems.

 Measure completed « Ongoing measure Ÿ Measure delayed

11 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Global Local Room for improvement Status 2013

Compact implementation identified by sites and next steps
Principle

Q Child labor is neither Q Incorporation of prin- Q Continuation of current

«
Principle 5:
tolerated nor practiced ciples of UN Global efforts (see above)
Q Further action to be based
Abolishing child
at Knorr-Bremse and its Compact into supply
labor
suppliers at any sites chain management on evaluation of supplier
world-wide. audits «
Q Confirmation also through
external customer audits
Q Support for education
and training programs for
children and young people

Q Compliance with national Q Analysis of equality Q Equality of opportunity to

Principle 6: legislation and internal of opportunity at all be given greater weight
Eliminating guidelines levels in our Corporate Re-
discrimination Q Employment of local staff sponsibility Strategy and
Q Ensuring remuneration appropriate options for
commensurate with per- measures to be identified «
formance Q Confirmation of equal
Q Appointment irrespective pay in Germany through
of gender or national origin Logib-D certification «
Q Complaints procedure Q Further measures to
established increase attractiveness
Q Analysis of gender-rele- as an employer to be
vant indicators systematically examined
and implemented «

Q Environmental manage- Q Continuation of cur- Q Ecodesign project to be

Principle 7: ment system based on ISO rent efforts launched in Commercial
Precautionary 14001 Q Expansion of envi- Vehicle Systems division
approach to Q Environmental risk analysis ronmentally-oriented as well «
environmental as part of environmental product risk analyses Q Analysis of value chains
challenges management and general for selected products in
risk management terms of potential risks
Q Health & safety and and opportunities e.g. for
environmental protection reuse or recycling «
policy communicated to all
employees
Q Recording of monthly envi-
ronmental statistics
Q Identification of scope for
energy savings by external
consultants

 Measure completed « Ongoing measure Ÿ Measure delayed

12 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Global Local Room for improvement Status 2013

Compact implementation identified by sites and next steps
Principle

Principle 8: Q Implementation of ECCO2 Q Systematic analysis Q Continuation of ECCO2

Initiatives to Initiative (see page 21) of environmentally initiative «
promote greater Q Promotion of environmen- friendly technologies Q Participation in energy
environmental tal awareness in production and efficiency network to ex-
responsibility Q Regular communication assembly change experiences with
and training Q Promotion of best other companies «
Q Environmental targets at practice exchanges Q Support of exchange of
site and Group level between sites best practices through
“round table” meetings
and transparent commu-
nication of activities and
contacts «
Q Implementation of a
Group-wide energy
management system
based on ISO 50001. «

Principle 9: Q Environmentally friendly Q Ongoing expansion Q Construction standard for

Diffusion of product portfolio of environmentally factory and administrative
environmentally Q Guidelines to promote friendly technologies buildings has been drawn 
friendly recyclability and reuse in production and up and will be communi-
technologies Q Measures aimed at more manufacturing cated and implemented
environmentally friendly Q Further expansion during the coming re-
production (technologies, of environmentally porting year «
machines, equipment, friendly product Q Integration of energy and

Ÿ
processes) portfolio resource consumption
Q Analysis of value into value stream analysis
Q Implementation of Eco-
Ÿ
chains
design project
Q Communication of
environmentally friendly
technologies from Knorr-
Bremse via PR flyer “Envi-
ronmental Portfolio” 

Principle 10: Q Application of local Codes Q Implementation of a Q Group-wide Code of

Anti-corruption of Conduct Group-wide anti-cor- Conduct was communica-
Q Group-wide guidelines on ruption guideline ted during the year under 
acceptance of gifts from review
business partners
Q Internal audits and
management training
Q Application of the “four
eyes” principle

 Measure completed « Ongoing measure Ÿ Measure delayed

13 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

General working conditions

In keeping with our stance on fair working conditions, certain minimum standards are stipulated in our
employment contracts. The basis of each contract is voluntary agreement with the employees, who may
exercise their right to terminate the contract unilaterally after the relevant period of time has elapsed.
When we recruit new employees we always verify their age to ensure that they are above the statutory
minimum employment age.

Various sites operate systems of employee representation. Company co-determination is established on a

statutory basis. The Works Council is an important body that enables company management to maintain
an ongoing, constructive and trusting dialogue.

Attractive employer
Knorr-Bremse is keen to position itself worldwide as an attractive employer that recruits and retains top
quality staff. Amongst other things this involves recognizing good performance and helping employees
achieve a balance between their personal and professional goals.

Knorr-Bremse offers performance-related remuneration and various additional forms of payment – for ex-
ample childcare subsidies, preventive health care or use of public transport. We also support our em-
ployees in achieving a better work/life balance by offering the possibility of flexi-time, teleworking, part-
time working and temporary leave, or support when it comes to caring for children or relatives. A wide
range of personal and specialized training provisions enables employees to improve their qualifications –
even beyond what is required for their particular profession.

At many sites we organize special family days for our employees and their families in a bid to encourage
motivation and loyalty to the company.

In a survey of 22,000 students in Germany carried out by the Wirtschaftswoche newspaper on career pros-
pects and employer attractiveness, Knorr-Bremse improved its ranking amongst engineers by 21 places
from 102nd in 2012 to 81st in 2013.

In order to assess levels of satisfaction amongst the workforce and identify possible areas for improvement,
we regularly carry out employee surveys. In 2011, 77% of the workforce used the opportunity to provide
management with feedback and thereby to influence their working environment in the future. Global
levels of satisfaction and commitment are high. An extremely positive rating was given to standards of
workplace equipment, social commitment, health & safety and environmental protection.

Room for improvement was identified in the areas of corporate culture, management development and
workload. Comprehensive measures were drawn up and are being implemented by the Corporate Human
Resources department.
14 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

As part of an internationally oriented project we have closely examined our own corporate and manage-
ment culture with a view to developing them to meet future challenges. Important elements in this pro-
ject included drawing up the new corporate values in collaboration with management at Knorr-Bremse
and deriving a new corporate vision from them, together with the corresponding leadership principles.

During the year under review, the main focus was on establishing the new corporate values throughout
the Group as a framework for the day-to-day activities and decision-making processes of the entire work-
force world-wide. The previous year had seen the values drawn up and communicated, and this year saw
“Reliability“ singled out and discussed during “Global Knorr-Bremse-Day”, with a special focus on the topic
“Quality“. At all sites world-wide, team or departmental workshops were held to discuss the operational
significance of “Quality” and “Reliability” and consider the individual contribution that employees could
make. Guided tours and presentations about the newly drafted Knorr-Bremse vision and our revised
leadership guidelines enlarged upon the topic, and the accompanying program offered plenty of scope
for employees from the various departments to exchange ideas with one another.

Another focus this year was on the topic of leadership culture. The particular management style adopted
in a company has a direct influence on employee motivation and performance and therefore makes a
crucial contribution to its success. An annual leadership feedback survey asks employees to assess their
managers’ leadership qualities, the idea being to strengthen dialogue between management and em-
ployees and establish a culture of open feedback. At the end of 2012 our leadership guidelines were
further developed on the basis of our corporate values. We continued to revise existing processes and
tools related to staff dialogue and potential management, and harmonized these internationally. A new,
comprehensive management curriculum for all levels of management was drawn up with a view to
ensuring that the leadership principles and related tools and methods are implemented across the board.

During the year under review, “Management in Dialogue” – a regular meeting of managers at sites in Ger-
many and the USA – was set up with a view to encouraging a deeper exchange of ideas between
management and Human Resources on current issues.

The third field of action derived from the employee survey – that of reducing the workload – is under
consideration at local or regional level, taking into account local requirements such as statutory regulations
on working time. Corporate Human Resources is responsible for coordinating these measures and is also
encouraging an exchange of best practices between sites in terms of organization, leadership and
training.

Further results and individual reports from the employee survey are being processed by local manage-
ment at the various sites and the measures taken are being monitored globally with the aim of ensuring
that some 700 measures derived from the survey and the 100-odd follow-up workshops world-wide are
implemented.

The success of these global and local improvement measures is monitored using the system described
above and evaluated by the next employee survey, which is scheduled for fall 2014.
15 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Work/life balance
Work/life balance influences employee motivation and performance – which is why we intend to maintain
a focus on this issue in the future and develop new offers and initiatives. We are, however, aware that what
can be offered depends very much on the individual position of the employee concerned, the area in
which he or she works and the degree of responsibility involved. For this reason, the approach taken can
vary from one site to another.

Provisions include:

Q Flexible working hours and working time accounts for employees on regular salary scales – enabling
overtime and short-time working to be balanced out over time.

Q Part-time working

Q Sabbaticals – enabling employees to take time out for several months and then return to their job.

Q Teleworking – offering employees the possibility of spending some of the agreed working time away
from the workplace.

Q Care provisions for the family – for example childcare or care for relatives

Q Family support programs, for example contributions towards preventive health care and sickness in-
surance, special financial subsidies or loans, vacation care, family days, days off in the case of illness of
a child or relative requiring care, maternity leave and parental leave even in countries without such
statutory provisions.

Q Other provisions such as health programs and facilities

These provisions, which have been considerably extended and adapted to current
requirements in recent years, were assessed and certified in Germany during the
year under review by the Hertie Foundation’s “berufundfamilie” (career and family)
audit.

In order to retain and develop the current level of provision, certification included
an agreement on targets, involving specific measures whose implementation will
be monitored and used as the basis for re-certification in three years' time.
16 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Supply chain
In order to ensure that our suppliers also act in accordance with our principles and obligations, we have
incorporated the UN Global Compact principles into our Rail and Commercial Vehicle Systems divisions’
Quality Management Program for Procurement as an integral part of our contracts with suppliers (see page
7). If suppliers fail to comply, Knorr-Bremse retains the right to terminate the supply agreement. A combi-
nation of voluntary disclosure and supplier audits enables us to assess the extent to which our suppliers
meet the requirements of the guidelines and implement the principles of the Global Compact.

Diversity & equality of opportunity

Knorr-Bremse supports equal opportunities and equal treatment for all its employees, irrespective of the
color of their skin, their national or social origins, any disability they may have, their sexual orientation,
political or religious beliefs, gender or age.

As an employer in 27 different countries, cultural diversity is one of Knorr-Bremse’s success factors. For this
reason it is important for us to encourage an understanding of and respect for other cultures and life situ-
ations and drive forward the integration of employees from other countries. Specific examples include the
use of local managers at international sites, intercultural training courses and the promotion of foreign
postings. Knorr-Bremse currently has some 100 employees from all levels of the hierarchy posted abroad.

Knorr-Bremse believes in equality of opportunity for men and women, and it goes without saying that the
company treats its employees equally, irrespective of their gender. New employees and managers are
recruited exclusively on the basis of their qualifications. And we do not differentiate between the salaries
of male and female employees.

During the year under review the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth ex-
amined the remuneration structures for Knorr-Bremse employees in Germany, confirmed that these meet
the above criteria and awarded the company Logib-D certification for pay equality.

Employees with severe disabilities and health impairments are given particular protection and encourage-
ment by Knorr-Bremse. When it comes to finding the right job, special representatives for the severely
disabled play an important role. The aim is not just to find them appropriate jobs but also to adapt the
workplace or the work environment to the needs of the employees concerned. For example, the use of sign
language interpreters enables hearing-impaired employees to take part in works assemblies or training
courses.

In 2012, a total of 180 severely disabled people were working for Knorr-Bremse in Germany (2011: 160*) –
equivalent to 5.1% (2011: 4.7%) of the workforce. The value of orders going to workshops for people with
disabilities was some 359,000 EUR in 2012 (2011: 378,000 EUR).

* This figure differs from the one contained in the 2012 report (2011:268 disabled employees): This was the result of an error in the previous evaluation, for
which we apologize.
17 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

In addition, for example, our subsidiary in Hungary formed a highly successful partnership with a local
workshop for the disabled in 2011. By transferring production of original spare part kits to Fepa-Elektro
Nonprofit Kft. we were able to create jobs for disabled people and at the same time maintain our high
standards regarding short throughput times, optimum costs and high quality even in the face of fluctua-
ting levels of demand.

Knorr-Bremse Global Care

Good quality education in a secure learning environment is essential for people to be able to lead indepen-
dent lives and determine their own future. In a bid to prevent child labor and promote the development of
children, Knorr-Bremse – via its charitable organization Knorr-Bremse Global Care e. V. – actively supports
education campaigns and projects in countries in which children and young people, for varying reasons,
often have no opportunity to undergo training and obtain vocational qualifications. The organization ac-
tively supports measures to permanently improve living conditions for children.

One example of this is our project in Kenya, where a training center has been built near Nairobi in conjunc-
tion with our partner organization Promoting Africa e. V. This provides young people from the slums of
Nairobi with the opportunity to train as seamstresses, cabinet-makers or electricians.

Further information and examples of projects can be found on the Internet at

www.global-care.knorr-bremse.com
18 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

5/ Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges,

Principle 8: undertake initiatives to promote greater environmental responsibility and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Knorr-Bremse is committed to integrated, precautionary environmental protection and consistently pro-

motes the development and dissemination of environmentally friendly technologies. Our aim is to minimize
the impact on the environment through responsible, sustainable use of natural resources, to continuously
improve environmental protection and to develop a greater sense of responsibility amongst employees,
customers and suppliers.

Group-wide guidelines
Our actions are guided by our Group-wide Health, Safety and Environment policy. This voluntary commit-
ment reflects our responsibilities as a company and goes beyond mere compliance with national legisla-
tion. Amongst other things it includes aspects such as environmental management, product responsibility,
efficient resource use and awareness raising. To ensure that this commitment is put into practice, Knorr-
Bremse has created a mandatory environmental management system that incorporates both internal and
external regulations and standards on environmental protection.

Environmental management in accordance

with international standards
Knorr-Bremse complies with all the environmental regulations and stan-
dards that apply to its various sites and has introduced corresponding environ- ZERTIFIKAT
mental management systems across the board. Environmental hazards and Die Zertifizierungsstelle
der TÜV SÜD Management Service GmbH

risks are routinely assessed in internal health & safety and environmental bescheinigt, dass das Unternehmen

audits, and appropriate measures are introduced to reduce these risks. Knorr-Bremse Systeme für Nutzfahrzeuge GmbH
Knorrstraße 1
D-94501 Aldersbach

für den Geltungsbereich

Entwicklung und Herstellung von

Nutzfahrzeug-Bremssystemen, aktiven Fahrzeugsicherheitssystemen,

Since 2001 we have been pursuing a process of Group-wide certification of integrierten Fahrzeugmodulen und weiteren Systemkomponenten
zur Fahrwerksteuerung für Nutzfahrzeuge

ein Umweltmanagementsystem
eingeführt hat und anwendet.

all our sites in the rail and commercial vehicle divisions under the interna- Durch ein Audit, Bericht-Nr. 70750494
wurde der Nachweis erbracht, dass die Forderungen der

ISO 14001:2004
tional environmental management standard ISO 14001. Certification has al- erfüllt sind. Dieses Zertifikat ist gültig in Verbindung
mit dem Hauptzertifikat bis 2013-12-14
Zertifikat-Registrier-Nr. 12 104 36858/01 TMS

ready been achieved for our production and service sites in Europe, North
and South America and the majority of our sites in the Asia-Pacific region. München, 2010-12-27 EMS-TGA-ZM-07-92
19 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

During the year under review, Knorr-Bremse CARS LD Vehicle Brake Disc Manufacturing and Knorr-Bremse /
Nankou Air Supply Unit in China as well as Knorr-Bremse Rail Services (Burton) Ltd., UK, achieved ISO 14001
certification.

Over the next few years further sites will be included step-by-step in the environmental certification pro-
cess.

Promoting environmental awareness

We use internal communication and training to increase our employees’ awareness of environmental issues.
Individual sites carry out annual assessments of training needs and put together the relevant in-service
training programs.

We also run a variety of awareness-raising campaigns and initiatives. Information brochures, calendars,
lecture series, competitions, children’s events and exhibitions offer tips and tricks for environmentally re-
sponsible behavior at work and in the home. The subjects of these campaigns are selected independently
of the main sites’ activities and can range from energy-saving, waste reduction and proper waste separa-
tion at production facilities to training in driver safety and efficiency.

For the third time in succession we presented internal Knorr-Bremse CR Awards for outstanding projects in
the fields of “Environment” and “Social Commitment”.

During the year under review, the award in the category “Environment” went to Knorr-Bremse subsidiary
Knorr Brake Corporation in the USA, where a photovoltaic array now generates a third of the plant’s electri-
city requirements and has reduced CO2 emissions by some 900 tons a year – the equivalent of the total
emissions produced by some 150 average-sized US automobiles. The sustainable construction and techno-
logy involved has been certified according to the LEED (Leadership in Energy & Environmental Design)
standard of the US Green Building Council.

Second place went to a cooperative project between Knorr-Bremse Rail Vehicle Systems in Munich and
New York Air Brake to produce a new oil-free compressor that represents a significant improvement over
existing models in terms of size, efficiency and additional safety functions.

And third place also went to a subsidiary in the USA – Bendix Commercial Vehicle Systems – for its “reman-
ufacturing business strategy“, which opens up scope for significant energy and raw material savings and
promises to reduce CO2 emissions and cut waste volumes.

Implementation of this strategy over the coming years should make an important contribution towards
environmental protection and make it easier to measure its progress.
20 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Climate protection targets

Knorr-Bremse has launched a Group-wide energy-efficiency campaign that sets ambitious targets for the
company. The aim of ECCO2 (Efficient Cut in CO2) is to achieve a 20% increase in energy efficiency compared
with 2009 by the year 2020 and thus also a 20% reduction in CO2 emissions. To do this, potential energy
savings across all areas of our business are systematically identified and exploited, and appropriate meas-
ures are then standardized and incorporated into company processes. For this purpose we also bring in
external consultants, and more than 40 of our sites worldwide have now received independent advice.
Successful projects are then transferred to other sites. An exchange of best practice solutions takes place
using internal means of communication and Group-wide guidelines, for example on lighting or on the
creation of energy measurement concepts.

During the year under review, the main focus of ECCO2 was once again on local improvement of buildings,
plant and manufacturing processes and on analyzing internal processes related to requirements of ISO
50001, the internationally recognized standard for energy management. The measures implemented,
which included optimizing waste heat recovery systems, making increased use of energy-saving lighting
systems, adapting and improving assembly lines and raising employees’ awareness of climate change
issues, resulted in a further reduction in CO2 emissions in 2012 compared with the base year of 2009.
Energy efficiency has already improved by more than 20%, which means that the targets originally set have
already been met.

Over the coming year, precise data on savings and related CO2 emission reductions throughout the entire
Group will once again be calculated, validated and further measures and targets drawn up.

Environmental protection in production

Ongoing improvement of our environmental performance is now an integral part of our sustainability
strategy. This includes efficient use of energy and resources as well as minimization of emissions and waste
and an increase in the use of environmentally friendly products and materials.

We regularly record quantitative data on our environmental performance so that we can set operational
targets at site level. Sites also regularly exchange best practice examples in areas such as efficient energy
use, raising awareness of environmental issues, waste water treatment and waste management.

During the year under review, for example, the packaging process for brake calipers was changed at our
production site in Faridabad in order to enable the wooden crates used for supplier deliveries to be reused
for transporting products to the customer – thereby avoiding the need for additional crates to be made.
And in Budapest, introduction of a refillable cleaning spray can reduced annual waste and consumption of
propellant gas from some 12,000 spray cans. At the same time, the consumption of cleaning liquid was
reduced by 20%, as the new system now enables the containers to be completely emptied.
21 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Energy management

Potential areas for saving energy are systematically identified in all parts of the company and appropriate
action taken. We continue to work towards further reducing specific energy consumption by improving
our manufacturing equipment and choice of processes and by upgrading plant technologies.

2010 71.9
2011 67.2
2012 64.6

Energy efficiency (kWh/1,000 EUR turnover)

Water utilization

As part of our environmental management system we have developed site-specific measures aimed at re-
ducing water consumption as far as possible. Water is used in particular for surface treatment and cleaning
of our products, for test applications and also as drinking water and for sanitary facilities. Our aim is to use
it as efficiently as possible and – where feasible – to recycle it. Our water supply comes from local authority
utilities and we dispose of it in compliance with statutory requirements via the public waste water system.

In order to reduce drinking water consumption, some of our sites use rainwater for cleaning, for sanitary
facilities and for irrigation purposes. At company headquarters in Munich, for example, we have a closed
circuit system that uses groundwater to cool the administration building and IT center.

State-of-the-art technologies for waste water treatment also help reduce water consumption. In recent
years Knorr-Bremse has reduced its specific fresh water consumption year on year by around 4%.

2010 101
2011 97
2012 93

Water consumption (l/1,000 EUR turnover)

Knorr-Bremse’s efforts to make sparing use of water go beyond the company itself: The charitable organi-
zation Knorr-Bremse Global Care made water a central focus of its activities in 2013 and gave specific sup-
port to projects involving water supplies for drinking, sanitary use and agricultural irrigation (see p. 24).
22 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Material efficiency

One of the main ways Knorr-Bremse saves resources is by making sparing and efficient use of materials in
its production processes. In particular this applies to steel and iron materials, light metals, polymers, fuels
and lubricants and packaging materials. We also set great store by ensuring that our production processes
are as efficient as possible and generate as little waste as possible. We try to use non-hazardous materials
and also more environmentally friendly alternatives wherever possible.

Waste

Knorr-Bremse operates on the principle of sustainable material cycles: reducing waste comes before re-
cycling, which comes before disposal. The primary goal is to reduce the total volume of waste – in particu-
lar hazardous waste – as far as possible. In cases where waste is unavoidable we are in favor of environmen-
tally friendly recycling. Most of the waste we generate consists of electro-plating sludge from surface
treatment processes and metallic waste from the processing of intermediate products. There is also
packaging waste consisting of cardboard, plastic and wooden palettes. In recent years the measures we
have taken to improve material cycles and reduce, separate and recycle waste have resulted in significant
cuts in the volume of waste generated. Knorr-Bremse currently has a world-wide recycling quota of
approximately 70% in the fields of production, service and administration.

Green IT
With its Green IT project Knorr-Bremse has considerably improved the energy efficiency of its IT infrastruc-
ture. The main elements in the project are optimization of the Corporate Data Center and users’ periphery
at corporate headquarters in Munich. The data center has been equipped with modern energy technolo-
gy, air conditioning and an interruption-free power supply and optimum use is now made of the servers
through a high level of virtualization. Existing IT hardware and software have also been analyzed, more
energy-efficient printers, monitors and PCs acquired, operating systems adjusted to save energy, and
users instructed accordingly.

Transport
As part of our Supply Chain Excellence initiative (SCE) we continuously monitor supply flows and logistics
between sites, suppliers and customers.

By optimizing our transport network and route planning – for example through ongoing improvement of
milk runs (needs-based, optimum routing), increased capacity utilization of trucks and containers and deve-
lopment of hub structures – we have been able to further increase the efficiency of our logistics chain. One
example is the “SDH” project – Supply and Distribution Hub – in the rail division, which involves deliveries
from four sites – Munich, Berlin, Budapest and Mödling – being dispatched from a single hub from mid-2014
onwards. This should reduce the distances traveled per ton of freight by approximately 10 per cent. We en-
23 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

courage our logistics partners to use modern, fuel-efficient vehicles, and achieve this partly by basing our
payment of emission or fuel consumption-related costs such as tolls on current vehicle standards.

Hitherto, transport-related CO2 emissions have not been continuously monitored and calculations have
been based on extrapolations. In future we intend to intensify our cooperation with logistics suppliers in
order to reliably determine our CO2 footprint and use it as a basis for introducing further improvements.

Incorporating environmental and social considerations into plans

for new sites
In order to minimize the environmental impact and energy consumption of new sites from the very outset,
Knorr-Bremse drew up a uniform construction standard for factory and office buildings during the year
under review and this is now being tried out in current construction projects.

The aim is to use intelligent planning to reduce the environmental impact and resource consumption of
new buildings while at the same time creating a pleasant and healthy working environment for our
employees.

The Knorr-Bremse construction manual defines standards for this and contains a checklist that makes it
possible to select the most appropriate building materials and technologies, taking into account local fac-
tors such as climate conditions. Implementation of our construction standards is backed up by reference to
internationally recognized standards on environmentally friendly, resource-saving and sustainable
construction. Thus, for example, our new sites in Brazil and the USA were planned and constructed to LEED
(Leadership in Energy & Environmental Design) standards.

The construction manual is due for general release during the coming year, after which it will be distribut-
ed and established as a compulsory standard for all new construction projects within the Knorr-Bremse
Group.

Sustainable product portfolio

In both the rail and commercial vehicle sectors, climate change and energy efficiency have become in-
creasingly important in recent years. In response Knorr-Bremse has made the development of fuel-efficient
technologies a priority, and is able to offer solutions that are tailored to market needs.

Knorr-Bremse was, for example, the first company in the rail vehicle sector to launch a compressor in the
market that operates without the need for any oil lubrication. And the LEADER driver information system
makes energy savings of up to 15% possible in rail vehicles.

For the commercial vehicle sector we offer the Pneumatic Booster System (PBS), which eliminates turbo-lag
during start-off and directly saves 2% to 3% fuel by enhancing engine performance (even more if this ena-
24 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

bles the engine to be downsized) as well as considerably reducing weight EFFICIENT.

EFFICIE
EFFICI ENT. TECHNOLOGY.
TE CHNOLOGY. WORLDWIDE.
WORLD
WORLD
ORLDWWID
IDEE.
1
and saving resources. And unlike traditional air supply systems, the latest
version of the Electronic Air Control System (EAC2) switches the compres-
sor on and off according to the driving situation, enabling CO2 emissions
per vehicle to be reduced by up to 2.5 tons per year.
Environmental
To draw the attention of customers, colleagues and other interested par- Portfolio
ties to these and other environmentally friendly product features, we crea-
ted the Knorr-Bremse Environmental Portfolio in early 2013. This provides
an overview of the contributions we make towards reducing our environ-
mental impact in areas such as energy consumption, atmospheric and
sound emissions and materials selection.

The Environmental Portfolio can be downloaded from the following link:

www.knorr-bremse.com/responsibility/products and partner

Sustainable product design: Ecodesign Project

Environmental compatibility and resource efficiency play an important role for Knorr-Bremse when the
company is developing innovative technologies. Early in 2011 the Rail Vehicle Systems division launched
the Ecodesign Project with a view to boosting the company’s commitment to product sustainability.

The aim of the project is to analyze the environmental impact of selected products across the entire life
cycle and further improve their environmental compatibility.

Our product groups have been examined on the basis of criteria such as energy consumption during
manufacture and operation, use of critical materials, weight and disposal – and areas for action have been
identified. Analyses of the value chain have yielded valuable insights into material and resource require-
ments and environmental compatibility during use. For example we have looked at the contribution that
weight-saving materials can make towards minimizing a vehicle’s overall energy consumption.

Over the coming year we intend to supplement these results with detailed life cycle assessments and
analysis of further products. We also intend to apply the same approach to Knorr-Bremse’s Commercial
Vehicle Systems division.

Social contribution of Knorr-Bremse Global Care e. V.

The charitable organization Knorr-Bremse Global Care e. V. funds projects that have a far-reaching impact in
the fields of education and social infrastructure. The organization takes a holistic and – where possible – sus-
tainable approach to its aid projects, amongst other things by raising awareness of environmental issues.
25 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Thus, in 2013, Knorr-Bremse Global Care selected the issue of water as its main focus and specifically pro-
moted projects in the fields of drinking water supply, sanitation and agricultural irrigation. Supporting
water projects not only improves access to water for day-to-day use but also enables further progress to be
made in achieving some of the other eight UN millennium development goals – for example reducing
child mortality, improving maternal health, eradicating extreme poverty, promoting gender equality and
empowering women.

An example of a project that points up various problems related to water – and has achieved significant
improvements – is the one being implemented between now and the end of 2014 by Knorr-Bremse Global
Care in a slum in New Delhi in conjunction with its partner organization Save the Children Germany e. V.
A “WASH” water, sanitation and hygiene advocacy campaign aims to provide young mothers and their new-
born babies with a cleaner, healthier living environment.
26 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

6/ Anti-corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and
bribery.

Integrity and responsible behavior in our dealings with business partners and our own employees are fun-
damental values that underpin everything we do as a company. Knorr-Bremse complies with the relevant
legislation and regulations as a matter of course, and is categorically opposed to all forms of corruption,
including extortion, bribery and any illegal or immoral behavior.

Compliance and Code of Conduct

During the year under review, the Code of Conduct setting out our principles of responsible behavior
which had been drawn up last year, was publicized and rolled out throughout the Group (see page 6).

The Code forbids all forms of corruption, including bribery and blackmail and also lays down further ethical
requirements. It serves as a guideline for our employees and aims to encourage integrity and responsible
conduct.

If corruption is to be prevented from the outset, it is essential for the principles laid down in the Code of
Conduct to be communicated transparently and effectively to the workforce and appropriate training pro-
vided. Every employee should be clear about what we understand to be responsible behavior and the rules
that we impose on ourselves. Our employees will receive regular training in the Code.

During the coming year we intend to focus on developing additional structures and instruments to sup-
port compliance with the Group-wide Code of Conduct. In addition to ongoing communication of the
Code, expansion of our training measures and investigation of infringements will play a prominent role.

Further guidelines
The basic principles contained in the Code of Conduct are further developed in the form of Group-wide and
regional guidelines, including a quality management guideline for procurement and an internal guideline
on acceptance of gifts.
27 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Internal review system

Internal reviews support the Executive Board in its monitoring role through independent and objective
inspections geared towards enhancing business processes and uncovering any cases of corruption.

Risk management
We routinely identify risks to our business and implement measures to reduce or prevent them and/or es-
tablish methods of managing them. The effectiveness of our risk management system is ensured by the
use of common standards and processes. As part of the risk assessment process, business units are regular-
ly investigated in order to identify any potential risk of corruption.
28 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

7/ Overview of implementation of the ten Global Compact principles

Human rights/labor standards (Principles 1–6)

Principles Implementation at Knorr-Bremse Status

Principle 1: Q Knorr-Bremse Code of Conduct Q Communication, further training

Businesses should Q Embedding the principles of the UN and follow-up in the case of non-
support and respect Global Compact in our procurement implementation «
the protection of inter- guidelines Q Procurement guidelines and supplier
nationally proclaimed assessment tool expanded, assess-
human rights and ment of suppliers regarding compli-
ance with the ten principles of the
Global Compact launched «

Principle 2: Q Workplace health and safety management Q Low level of work-related accidents for
Businesses should make years, certification to OHSAS 18001
sure they are not complicit standard «
in human rights abuses.

Principle 3: Q Involvement via the charitable Q Ongoing involvement based on the

Businesses should organization Knorr-Bremse Global principle of “helping people to help
uphold the freedom Care e.V. themselves” «
of association and the Q Global survey on compliance with Q Drafting and implementation of
effective recognition of our voluntary undertakings and the global approaches to the potential
the right to collective principles of the Global Compact at for improvement identified by the «
bargaining and further- 33 Knorr-Bremse production sites sites
more uphold

Principle 4: Q Standards on working conditions Q Standards on working conditions

Businesses should incorporated into employment con-
uphold the elimination of tracts. 
all forms of forced and
compulsory labor

Principle 5: Q Positioning the company as an attractive Q Implementation of performance-

Businesses should employer world-wide through target and related packages based on local and
uphold the effective performance-related remuneration, many regional standards and constantly
abolition of child labor additional payments, appropriate working adjusted; confirmation through
time models to ensure proper work/life “berufundfamilie“ audit of sites in
balance, support for families etc. Germany 

Principle 6: Q Equality of opportunity and equal Q Employees recruited solely on the

Businesses should treatment of employees irrespective of basis of their qualifications; “Logib-D”
uphold the elimination skin color, national or social origin, any certification for equal pay at German
of discrimination in disability they may have, sexual orienta- sites. 
respect of employment tion, political or religious beliefs, gender
and occupation. or age.

 Measure completed « Ongoing measure Ÿ Measure delayed

29 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Environmental protection (Principles 7-9)

Principles Implementation at Knorr-Bremse Status

Principle 7: Q Group-wide environmental management Q Environmental certification to ISO 14001

Businesses should system at production and service sites in standard in Europe, North and South
support a precautionary both divisions America and main sites in Asia- Pacific
approach to environmen- region; further sites will be included step-
tal challenges, by-step in certification process. «

Principle 8: Q ECCO2 (Efficient Cut of CO2) initiative Q The target of improving energy effici-
Businesses should aimed at supporting climate protection ency by 20% compared with 2009 was
undertake initiatives to goals and improving internal energy achieved during the year under review; 
promote greater environ- efficiency is implemented world-wide at the initiative will be continued in order
mental responsibility some 40 sites. to exploit further potential and establish
Q Careful use of natural resources, in parti- systematic energy management. «
cular water Q Increased use of closed systems or use
Q Knorr-Bremse subscribes to the princi- of rainwater for cleaning, sanitary pur-
ple of a sustainable economy based on poses or irrigation. «
recycling. Q Measures to reduce waste, e.g. reusable
packaging, recycling of packaging
material, waste separation – for example
where waste is generated, internal recyc-
ling centers for recycling/disposal in the
most environmentally and economically
appropriate manner. «

Principle 9: Q Green IT project for optimizing energy Q Optimization of Corporate Data Center
Businesses should efficiency and hardware/software. «
encourage the develop- Q Knorr-Bremse construction manual: Q The construction manual was finalized
ment and diffusion of construction standards for factory and ad- during the year under review 
environmentally friendly ministrative buildings taking into account and will be distributed and implemented
technologies. environmental and social aspects over the coming year. «
Q Ecodesign project for analyzing environ- Q Analyses of core products, detailed life
mental compatibility of selected products cycle assessments still to be carried out;

Ÿ
in the Rail Vehicle division across the application to Commercial Vehicle divisi-
product life cycle on also still open.
Q Sustainable product portfolio: for years Q The Knorr-Bremse Environmental
Knorr-Bremse has offered solutions tail- Portfolio has created an overview of the
ored to market requirements, which achieve company’s contributions towards envi-
fuel savings and reductions in energy ronmental protection in the areas of ener-
consumption, making the operation of rail gy consumption, atmospheric and sound
and commercial vehicles more efficient emissions and materials selection that is
and more environmentally friendly. available to customers and colleagues on
the Internet. 

 Measure completed « Ongoing measure Ÿ Measure delayed

30 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

Anti-corruption (Principle 10)

Principles Implementation at Knorr-Bremse Status

Principle 10: Q Knorr-Bremse Code of Conduct Q Communicated; further training and

Businesses should work Q Guidelines for acceptance of follow-up in case of non-compliance in
against corruption in all gifts implementation «
its forms, including Q Group audits for independent Q Guidelines implemented with adaptation
extortion and bribery. checking of internal and external to local conditions 
requirements

 Measure completed « Ongoing measure Ÿ Measure delayed

31 C O M M U N I C AT I O N O N P R O G R E S S R E P O R T K N O R R - B R E M S E G R O U P 2 0 1 3

KNORR-BREMSE GROUP

Knorr-Bremse AG
Corporate Responsibility
Moosacher Straße 80
80809 Munich
Germany

Tel.: +49 89 3547-1252

Fax: +49 89 3547-2331
Email: cr@knorr-bremse.com