Overview

Governance

Ethics and Compliance

Stakeholder Engagement and Dialogue

Customers

Suppliers

Facility Management

Quality first

Building trust by applying international standards
With the large diversity of services and customer solutions that Kuehne + Nagel offers it has to be ensured that these are according to international standards and requirements such as International Organisation for Standardisation (ISO), Authorised Economic Operator (AEO), Customer Trade Partnership Agains Terrorism (C-TPAT), Hazard Analysis and Critical Control Points (HACCP), etc. Applying these standards ensures a harmonised business approach when dealing with supply chain partners. 

The main standards applied and certified are ISO 9001 Management (704 sites), ISO 14001 Environment (488 sites) and OHSAS/18001 respectively ISO 45001 Safety & Health (365 sites).  ^{GRI 416}  Additionally, a number of vertical activities are compliant or certified to various standards such as Global Food Safety Initiative (IFS Food), HACCP, Aerospace Industry (EN9100), GXP pharma/healthcare, Transported Asset Protection Association (TAPA), Safety and Quality Assessment System (SQAS), ISO 13485 Medical Devices, ISO 14064-3 Greenhouse Gas Emission, ISO 22001 Food Safety Management, ISO 22301 Business Continuity Management, and ISO 28001 Supply Chain Management Security.         

All of these standards are compliant to a particular business or industry related activities within the Kuehne + Nagel Group.  

For 2019, the certification of our IT Security according to ISO 27001 is planned for a large number of sites in Europe as well as full implementation of the new ISO 45001, replacing OHSAS 18001. 

Activities that do not comply are being reported in the global non-conformity reporting. This allows to identify potential improvements and to ensure implementation and execution of corrective measures across all business and functional units within the organisation. For 2018, a total number of over 13,400 non-conformities have been reported (2017: 10,000) to progress and improve the area of processes, customer relationship and where needed on investments to satisfy overall customer needs and requirements.

Compliance by verification
For a multinational company, it is important to ensure globally harmonised business processes. This was accomplished by regular quality audits in the countries and business units. In 2018, 790 sites were audited in 90 countries. Due to a risk based approach, the numbers of audits were reduced from the previous year (2017: 883 sites) and audited departments slightly reduced to 4,027 (2017: 4,310). 

For the past year, close to 600 audits have been executed by existing or potential customers and governmental bodies in the premises of Kuehne + Nagel. One of the highlights is the stringent and thorough processes Kuehne + Nagel is able to provide as no critical findings were identified.

Added value to the customers supply chain
In line with our corporate strategy we offer our customers tailored solutions based on technological expertise and the highest service standards as well as full compliance with regulatory requirements. Kuehne + Nagel developed over years industry-specific solutions such as KN PharmaChain for pharma & healthcare, KN EngineChain for aircraft engines, KN BatteryChain for lithium battery shipping etc. In the past year, a total of over 340 sites qualified for these services and based on increasing customer demand this will further increase in the period to come. In case of contaminated goods for pharma and food a recall will ensure withdrawal from market. Upon disposal order from customer goods are kept segregated.  ^{GRI 417}

Occupational Health and Safety 

^{GRI 403–1; GRI 403–2; GRI 403–4; GRI 403–5; GRI 403–7}

Kuehne + Nagel aims at achieving the highest level of health and safety for all parties involved in all our operations. Our Safety & Health Management System continuously evaluates the status of our work environment while fostering its continuous improvement.

In 2018, the “No harm” campaign has been further rolled out. With the “No harm” campaign, we are committed to maintaining a safe and healthy working environment for our employees, partners, customers and the communities in which we operate. All blue collar workers in our locations have been trained in hazard recognition and reporting of them. Supervisors in warehouses have been trained in keeping their teams motivated to report unsafe situations. 

The next phases of the campaign will focus on management and office workers; in the mean time for operations it has been made easier to report. An online reporting tool has been introduced in the second half of the 2018. The “HSE-app” is being introduced to allow an easy and fast reporting of unsafe acts and unsafe conditions in several countries.

In the reporting period, the number of Lost Time Incidents decreased by 1.2% while the number of (new inexperienced) workers increased by 11%. The number of Lost Work Days decreased by 15% in 2018, implying that the injuries are less severe.
 

 *  LTIF – The number of LTI’s per 1,000,000 working hours
**  TRCF – The number of TRC’s per 1,000,000 working hours

Despite the aim to prevent any harm in 2018, Kuehne + Nagel contracted suppliers incurred fatal accidents. In Germany, a third party employee was fatally injured whilst closing the doors of a trailer. In South Africa, two road traffic accidents led to three fatalities. In USA, a third party employee was fatally crushed between a warehouse and a truck. We deeply regret these incidents and send our heartfelt condolences to the families. As a direct follow-up, supplier management has been increased and a minimum standard for driving and road transport has been developed and communicated to avoid potential future tragedies. 

The rollout of the “Get Home Safe” Campaign was continued in the Kuehne + Nagel locations in Middle East and Africa, where all (almost 1,000) employees were trained in Defensive Driving. The campaign was further introduced in North and South Asia Pacific, where the focus is on wearing seat belts.

In 2018, many locations reached 1’000 days without an accident in warehouses (see map below). One location is celebrating 10 years without any working accident!
 

1,000 days without an accident in warehouses around the globe in 2018

Raising awareness among the staff for near-misses, unsafe acts and unsafe conditions 

In 2018, Kuehne + Nagel New Zealand has been fined by the court for non-adherence of regulatory requirements and had to pay a penalty worth $ 272,000. No other court cases nor fines have been reported. The “No harm” Campaign intends to change the behavioural safety culture of Kuehne + Nagel. Recognising hazards, intervention and reporting are the foundation of it. The “No harm” Campaign, together with the STOP Work Authority Programme and the newly introduced HSE-app have resulted in an increase of almost 300% reported unsafe acts and unsafe conditions. The total number of unsafe acts, unsafe conditions and near-misses reported were 41,945. This provides learning opportunities to further improve safety levels of our workplaces and processes.  ^{GRI 403–5}

Safety Pyramid

Security Moment

Kuehne + Nagel Germany, a major country organisation within the Group, is subject to the German IT Security Act. To meet the regulatory requirements and to mitigate the associated risk exposure, Kuehne + Nagel has introduceda global Information Security Management System (ISMS) with the aim to assess, evaluate and treat information security risks. Additionally, Kuehne + Nagel is aiming to become certified in accordance with the ISO/IEC 27001 standard.

In 2018, the Transported Asset Protection Association (TAPA) Incident Information Service (IIS) reported a significant increase in security incidents (+38%) and associated commercial loss values (+46%) affecting  the industry in EMEA. Despite this challenging development, Kuehne + Nagel Corporate Security managed to stabilise the effects of security incidents encountered at a guarded level. However, Kuehne + Nagel Europe was affected by one major incident in the third quarter of 2018. Following a thorough investigation and root cause analysis of the mentioned case, additional security measures were introduced to mitigate the risk of recurrence.

Stable development of loss values despite increasing crime rates

Highlights for 2018

• The Czech Republic, Peru and the United Arab Emirates were successfully certified as Authorised Economic Operators.
• Kuehne + Nagel developed an ISO 28001 based business solution for customers with enhanced security requirements. The network of KN Secure Chain certified branches expanded to a total number of 50.
• Kuehne + Nagel Australia is the first entity being certified as Regulated Air Cargo Agent (RACA) by the Australian Civil Aviation Authority.
• Kuehne + Nagel is the first company ever achieving a regulated agent certification of a shared service center operation by a European Civil Aviation authority.

AEO Certifications

Dangerous Goods

The use of the new internal digital platform myKN has ensured better visibility of our locations able to handle High Consequence Dangerous Goods (DG), our company DG contact network and our policies; such as, for example, those on forbidden DG. Additionally, 2018 saw the implementation of the global online incident reporting tool for DG. Dangerous goods are stored in a defined and separated area as per local regulations. In case of incidents qualified employees will follow defined emergency procedures.  ^{GRI 417}

KN BatteryChain, which was launched in 2017, expanded from five to 23 locations in 2018. A positive response from customers clearly indicates that Kuehne + Nagel is supporting the automotive industry by offering a market-leading service. In particular, the “Batteries to Production Line” and the aftermarket segments offering the return transport of used batteries are receiving scrupulous attention from battery manufacturers and OEMs alike. Kuehne + Nagel certified locations are subject to a comprehensive implementation programme and have to adhere to all applicable DG regulations, but also the relevant elements of ISO 9001:2015 and ISO/IATF 16949:2016; with the latter being the automotive industry quality standard. Hazardous waste batteries are transported fully compliant with national regulations with knowledge concentrated in the KN ControlTower located in Luxemburg. Only fully licensed and accredited carriers are used following vetting via our Supplier Management Tool (SMT).