Suppliers

The General Purchasing Conditions form an integral part of contracts between suppliers and KION GROUP AG and its subsidiaries.

Sustainability is an integral part of KION's strategy, and we are working with our suppliers to establish this understanding throughout the supply chain. The Supplier Sustainability Department works on and supports various sustainability topics at KION:

• Human and environmental rights,
• Environmental product requirements (REACH, ROHS, TSCA, PFAS, EU-WFD, POP),
• Conflict minerals and critical raw materials,
• Greenhouse gas (GHG) emission reduction,
• Life-cycle-analysis (LCA) and circular economy.

KION Group uses various third-party tools to survey the topics mentioned in “general purchasing conditions”. We ask the requested suppliers to participate in these assessments.

We have implemented a three-step risk management system that enables the assessment of our suppliers' compliance with human and environmental rights. Using a specialized software-as-a-service (SaaS) platform, the following steps are implemented:

• Suppliers are screened to understand their inherent sustainability risk profile based on country, sector and commodity;
• Selected suppliers will be asked to complete a self-assessment questionnaire to determine the maturity level of their activities in terms of compliance with human and labor rights and environmental protection;
• After analyzing the results and potential risks along our supply chain, we work with our suppliers to develop improvement measures. We also consider the supplier's circumstances, size, and industry. Our Supplier Sustainability Department is available to provide advice and support.

The risk assessment is also part of our supplier evaluation and can be included in the supplier selection process.

Environmental product requirements are legal minimum requirements for products that prohibit and/or limit the use of certain raw materials that are harmful to humans and the environment.

As an internationally operating company, we must comply with various regulations, including:

• EU REACH-SVHC,
• EU Waste Framework Directive,
• EU RoHS,
• EU Battery Directive,
• US Conflict Minerals,
• US TSCA,
• EU POPs,
• PFAS.

We request the necessary information from our suppliers via our Assent platform after their initial registration as a supplier.

Compliance with these requirements is essential and a prerequisite for cooperation.

In 2024, we have committed to emission reduction targets under the SBTi initiative and had them validated.

We also rely on our suppliers to reduce our own CO2 emissions. We have therefore launched the PACER project, with which we aim to motivate and empower our suppliers to calculate their own CO2 emissions and develop a plan to reduce them. Only together can we achieve our countries' climate targets.

A query of CO2 data may also be relevant within the framework of CBAM (EU Carbon Border Adjustment Mechanism) if you are a supplier of affected material groups.

Life Cycle Analysis (LCA) is an internationally recognized and standardized method used to calculate a product's environmental impact. KION conducts this analysis for selected products and requires information from suppliers regarding recycled content, production processes, and similar aspects. The goal is to use this information to optimize and reduce the ecological footprint of our products.

Circular economy (cradle-to-cradle; C2C) describes a model in which every component of a product can be used as a raw material for another product instead of being scrapped or disposed of at the end of its life.

KION e-source is our web-based tendering and supplier management platform that brings all relevant departments and suppliers together in one virtual place and enables us to collaborate digitally.

With our supplier portal KION e-source, you will be able to

• independently update your company's data & contact persons,
• enable yourself to participate and be considered for suitable tenders in the future and receive invitations and access to electronic RFQs,
• gain easier access to performance indicators,
• receive more targeted, efficient two-way information exchange using state-of-the-art interactive templates and workflows,
• immediately view results of joint activity.

Through the electronic interchange of structured business data, such as delivery call-offs, purchase orders, or invoices, we support efficient communication between our brand companies and their customers and suppliers. -

The Production Part Approval Process (KION PPAP) is a key element of product and production approval. KION PPAP is based on IATF 16949, while KION plant standard WN 50 020 specifies the requirements and timelines.

The objectives of KION PPAP are:

• A collaborative relationship between the KION Group and our suppliers.
• A clear specification of the supplier parts by the KION Group.
• The implementation of the requirements by the supplier.
• The documentation of the outcome by the supplier.
• The safeguarding of quality from day one of full production.

The External Tooling Approval Process (ETAP) is a structured method for monitoring and support of the industrialization phase for tooling at supplier side with a standardized KION process.

The KION plant standard 50 040 contains the essential elements and general requirements for the release of externally manufactured and used tools. It describes the process and the respective responsibilities, specifically of the suppliers, and applies to all business units of the 'Industrial Trucks & Services' segment and the suppliers affected by this process.

The objectives of ETAP are:

• Support for suppliers in the industrialization of Toolings
• A common understanding of tooling requirements
• Reduce Industrialization time by follow-up with/at supplier
• Assure higher maturity for the Approval of External Toolings
• Realization of the requirements by the supplier
• Documentation of the results by the supplier

KION ETAP makes a valuable contribution to our collaboration with Suppliers.

The Logistics Terms and Conditions (“LTC”) for our Operating Unit KION ITS EMEA define the necessary requirements for the delivery of products with regards to our Industrial Trucks & Services segment.

The Logistics Terms and Conditions describe all technical and operational aspects of a successful collaboration from product development phase to serial production and in the spare parts business. Furthermore, the Logistics Terms and Conditions describe how we as KION Group assesses and improves the collaboration with our suppliers.

The rules of the Logistics Terms and Conditions shall apply additional to any other agreements made with the supplier relating to supply and purchase of products by the KION Group (e. g. Frame Supply Agreement). We order solely based on our Logistics Terms and Conditions. Terms and conditions of the SUPPLIER which differ, conflict or are additional to the LTC of KION are not accepted and shall not apply, unless KION has agreed to them expressly.