Our way to
a sustainable future

Our shared vision to make a positive impact
now and for the next generations to come.

Read the Report 2023

Let‘s shape the future today.

We all have our own paths to make a positive impact, but as KOSTAL Group, one global Team, we have a shared vision: OUR WAY to a sustainable future.

KOSTAL Management Board: Andreas Kostal, Dr. Gregor Schmeken, Kai Knickmann

Sustainable by innovation.
Since generations.

Sustainable action has been a vital part of KOSTAL’s corporate strategy, organic growth and diversification since the company was founded in 1912 and is thus an essential factor in our corporate development and success, too. KOSTAL takes a long-term view in all its strategic decisions. Acting sustainably is a daily aspiration for us. This is clearly reflected in our company value: "We shape the future today".

KOSTAL is a more than 100-years old family- owned company with a long tradition of acting responsibly. We are focused on the long term, sustainable action is a daily aspiration for us.

KOSTAL Management Board 2023

Sustainabilty Focus Areas

Environment

Social

Governance

Report

Productdesign driven by energy efficiency

Constantly renewing and improving

In order to successfully meet the ambitious targets set out in the Paris Agreement, greenhouse gas emissions from transportation and from electricity generation must be significantly reduced. Our research and development activities and innovations have been providing a solid foundation to the sustainable growth of KOSTAL Group.

Innovation is a tradition with us – we are constantly renewing and improving our products, our technologies and our processes. With innovations in the field of electric vehicle charging technology, solar inverters, and frequency converters, KOSTAL Group and its business divisions support the global society to decarbonize transportation, electricity generation and to improve energy efficiency.

Alignment with customers & partners

We closely cooperate with our customers to fully understand and align with their sustainability strategies and goals, and we monitor environmental legislation and regulations at regional and global levels that may impact our products.

Our approach to sustainable products

Innovative materials & processes

identify bio-based and recycled raw material alternatives to replacing the virgin raw material
focusing on reducing complexity, and improving reparability, and recyclability

Resource efficiency

identifying and implementing resource efficient production technologies
continuously improving the resource efficiency of manufacturing systems
integrating sustainability related requirements into our Technology Development Framework

Reduction of CO₂e footprint of products

establishing lifecycle carbon footprint calculation for main product groups in our portfolio
analyzing sustainability impact of new projects and products
design for sustainability
develop products with keeping sustainability in mind

Our Ambitions until 2030

Our 2023 and 2045 ambitions enable and inspire positive impacts on the environment and society while creating value for the Group and stakeholders.

90 %

waste diversion rate in production

100 %

of target suppliers use renewable electricity

100 %

ISO 14001 and ISO 45001 compliant factories

90 %

renewable electricity at all KOSTAL factories

100 %

of target suppliers report ESG data

40 %

GHG emission reduction on the value chain

25 %

energy consumption reduction in production

Carbon neutral in 2045

Priorities of our ESG strategy focuses on those critical areas, where we can make the biggest impact:

Our focus on Environment

Decarbonization | Resource Efficiency | Sustainable Products

We take responsibility

The scale and urgency of climate change make bold sustainability ambitions inevitable. At KOSTAL Group, we are committed to, operating our business in an environmentally-friendly way. Looking at global sustainable development, being a leading supplier of automotive battery chargers, solar inverters, and frequency converters, our company plays a key role in the transition to electromobility and renewable energy.

What we do

develop innovative products while keeping sustainability in mind
use sustainable materials and manufacturing processes
work towards carbon emission reduction to be a Carbon Neutral company by 2045
reduce our energy consumption and fossil fuel intake
increase the use of renewable electricity at our operations and in our supply chain
continuously improve our resource efficiency
working towards circular economy by minimizing waste and closing the loop
partnering with our suppliers on our sustainability ambitions

You can find certifications according to DIN ISO 14001 in the Download area.

From Ambition to Action

Hagen reduces fossil fuel usage

At the KOSTAL manufacturing site in Hagen, 12 heat pumps with a total heating capacity of 624 kW have been installed to provide the heating of the production hall. As a result of the project, the heating oil consumption of the site was reduced by 30% and more than 100 t of CO2eq emission been eliminated.

Energy consumption reduction in Mexico

KOSTAL factory in Acámbaro, Mexico, took a comprehensive approach to improve the resource efficiency of the facility. Implemented projects: optimization of the plasma machine (1,2 KWh savings/day); energy-efficient LED lamps (87% less consumption); aluminum panels inside the SMT manufacturing lines (efficient cooling and heating), optimization of the injection mold tools; new thermo-regulator machines (60 Wh saving/machine); and new electric machines to eliminate hydraulic.

Solder dross recovery in Brazil

During the soldering process, the solder cannot be separated from the dross and the operators must remove larger amounts of solder, making the process intense in material use. The team in Brazil has developed a machine that heats the solder-dross mix. This way, the metal is separated from the powder via the decanting process, which results in 50% less material use.

Our focus on People

Health & Safety | Diversity & Inclusion | Human Rights & Labor

Because we care

At KOSTAL we believe that our colleagues are the key to our future success. We act with care related to our colleagues, suppliers and customers and the communities in which we live and work. We will continue to work on protecting the human rights, health and safety of our colleagues and of the people working in our supply chain.

What we do

provide safe workplace for everyone, where employees feel valued, empowered and involved
make diversity, inclusion, and equity an essential part of our culture
strive to have a positive impact on the communities in which we operate
establish programs to engage employees in our day-to-day sustainability efforts
take responsibility for human rights and working conditions within our operations and supply chain
partner with our supplier to achieve our sustainability ambitions

From Ambition to Action

Tree planting and community garden in Brazil and India

KOSTAL was cooperating with the local municipality in Cravinhos, Brazil to plant 200 native trees in the city park. This initiative confirmed the importance of environmental preservation and community collaborations. To celebrate Earth Day, employees in Brazil collected 2000 PET bottles and used them to create a community garden, which they maintain. At KOSTAL India, 100 trees were planted inside the factory premises on Earth Day.

One of Germany’s best employers

In April 2022 the weekly magazine „Stern” presented the results of the survey „Germany’s 650 Best Employers”. The survey was conducted by the independent market research institute, Statista. KOSTAL was ranked 9th in the „Automotive and Suppliers” sector.

Children Day in China

KOSTAL Asia HQ in Shanghai opened the gates for the children of our employees. With this initiative we could deepen the understanding of the work the parents are doing at our facility, and also give an entertaining introduction to children to what KOSTAL is about. The assembly competition was the highlight of the day, as well as the production floor visit.

Our focus on Governance

Corporate Governance | Ethics & Compliance | Communication & Reporting

Our way to secure sustainability across the KOSTAL Group

We focus on creating the conditions for success, by creating an atmosphere where company values are supported, demonstrated, and lived. This is the way we conduct business every day. Governance is about creating and maintaining transparency.

We create a sustainability framework to understand our impact, oversee our sustainability activities at the highest level of decision making, set meaningful midand long-term sustainability goals and ambitions, and focus our actions on issues that really matter.

As a member of the UN Global Compact, we are committed to integrating sustainability principles into our strategy, culture, and day-to-day operations of our company.

What we do

establishing a sustainability framework to understand oversee our sustainability activities at the highest level of decision making
define a sustainability strategy and ambitions
constantly work on reliable sustainability data collection
transparently report on our progress and sustainability performance
establish communication programs to engage employees in our day-to-day sustainability efforts
have a roboust compliance program in prevention of corruption, and to ensure legal compliance
expect compliance with KOSTAL Code of Conduct and Supplier Code of Conduct

From Ambition to Action

You can count on them! The KOSTAL values

Values create certainty, values create common ground, values create values in all of our relationships. Values are the binding element. This is why you are so valuable to us. Shared values form the basis for a long-term, sustainable and successful future.

Learn more about our values

ESG Transparency Award

On the 6th of December 2023, EUPD Research, more than 20 years of research and analysis experts honored KOSTAL Group with the ESG Transparency Award for sustainability reporting excellence. The awarding ceremony was held in Bonn, Germany. The Group received the award for professional and transparent reporting on the Group’s environmental, social, and governance performance for the year 2022. EUPD Research has reviewed over 400 sustainability reports, and selected organizations that have not only embraced the challenge of Corporate Social Responsibility but have integrated innovative sustainability concepts into their core business strategies.

Code of Conduct

KOSTAL is over 100 years old and in all these years we have been and continue to be sustainably very successful in what we have done and are doing. This Code of Conduct shows you how we think and act at KOSTAL and which values guide us in all that we do. It forms the foundation on which all other guidelines are based.

Acting ethically and with integrity enables KOSTAL to continue to build and maintain its excellent reputation in the industry, to attract and retain outstanding colleagues and to meet the high expectations placed on us by our customers, suppliers, partners and society.

Learn more about our code of conduct

KOSTAL Group ESG Report

KOSTAL Group‘s Sustainability Report contains information about the GRI and ESRS standard requirements. The report provides access to transparent information regarding the Group‘s sustainability performance and ambitions.

Download the Report

Outstanding environmental performance and tangible positive social impact. This is our daily mission, motivation, and a truly exciting professional field in today‘s world.