NORD DRIVESYSTEMS Sustainability Strategy

Our Path To Greater Sustainability At NORD

Our sustainability strategy starts within our organization and extends across the broader industrial value chain.

As a family-run company, we take responsibility for environmental and social issues and for future generations. We continue to develop our processes and products, with ongoing efforts to strengthen key parts of our value and supply chains.

As a supplier of electric drive components used across many industrial sectors, improving efficiency and resource use in selected products and applications is central to our business. Through comprehensive service and consulting offerings, we help customers identify efficiency opportunities in their applications and provide practical ways to achieve them.

Our sustainability strategy serves as a binding framework for our actions. Therefore, we are committed to continuously improving our products and work processes and placing greater emphasis on defined sustainability aspects.

Carolin von Rönne

45 %

Fewer GHG emissions by 2030.
Our target for Scope 1 and 2 compared to 2024.

25 %

Electric by 2030.
We are steadily increasing the share of electric drives in our global vehicle fleet.

Advancing Sustainability In Drive Technology

Sustainability requires clear direction. We align with the internationally recognized ESG framework (Environmental, Social, and Governance) and map our areas of focus to these three pillars.

Our focus areas—Environment, Products, and People—are clearly defined. The supply chain (SCM) plays a key role, influencing both Environnmental and Governance areas, as sustainable supply chains combine environmental responsibility with transparent processes.

The ESG framework helps coordinate activities across the Group, track progress using defined metrics, and communicate our work clearly both internally and externally. We are committed to advancing all focus areas with consistency, reliability, and continuous improvement.

<H3>Environmental</H3>
We are working to reduce emissions and improve energy efficiency and resource use—within our operations and across customer applications. This supports ongoing progress in industrial processes throughout the value chain.

Our Environmental Approach

<H3>Social</H3>
Our employees are the foundation of our success. We invest in their development, promote safe working conditions, and support professional growth. These efforts strengthen engagement and reinforce our position as an employer of choice. At the same time, we continue to shape a modern and responsible work environment at our locations worldwide.

Our Focus On People

<H3>Governance</H3>
We integrate sustainability into our organization through clear standards, digital processes, and close collaboration with our global subsidiaries. This creates transparent, scalable structures that meet regulatory requirements while supporting efficient operations.

Understanding Our Structures

Environmental: Responsibility for the Environment and Climate

We have a clear objective: reduce our greenhouse gas emissions ( Scope 1 & 2 ) by 45% by 2030, using 2024 as the baseline and without relying on offsetting. To reach this goal, we are focusing on renewable energy, expanding in-house power generation and improving efficiency in key areas of the supply chain.

We also address critical areas such as waste reduction, sustainable logistics, and the advancement of circular business models. Our environmental strategy combines defined climate goals with practical actions designed to deliver measurable progress.

<H3>Environment</H3>
As a mechanical engineering company, we influence resource consumption and emissions worldwide. We manage key environmental aspects through a globally implemented environmental management system. Clear standards, defined measures, and regular training help integrate environmental priorities into daily operations.

<H3>Products</H3>
Sustainability is built into our development processes—from material selection through multiple stages of the product life cycle. Our drive solutions focus on energy efficiency and durability. With services such as <a href="https://www.nord.com/de/services/after-sales-services/nord-eco/nord-eco.jsp">NORD ECO</a>, we support customers in identifying energy-efficient systems and reducing overall energy consumption.

<h3>Supply Chain</h3>
Sustainability extends across both upstream and downstream activities. We evaluate key areas of our value and supply chains. Clear standards, supplier codes of conduct, and digital tools support transparency and compliance. Regular assessments and supplier collaboration help identify issues early and define targeted action plans.

We are specialists in drive solutions for more than 100 industries. Drive solutions are found in many areas of industry, where they account for a significant portion of energy consumption in numerous applications. With our highly efficient drive solutions, we aim to contribute to reducing energy consumption and operational CO₂ emissions.

Jörg Niermann and Marcel Grunenberg

Goals and Impact: Environmental

Our 2030 Environmental Strategy combines defined climate targets with disciplined execution and sound economic planning. Key focus areas include renewable energy, waste reduction, improved logistics, and circular economy practices.

Our Key Environmental Goals by 2030

  • Reduce Greenhouse Gas Emissions (Scope 1 & 2)
    Reduce emissions by 45% in absolute terms by 2030 using 2024 as the baseline
  • Limit hazardous waste (paints)
    Reduce paint waste and VOC emissions to a maximum of 10% of purchased paint volume
  • Increase Recycling Rates
    Improve recovery of hazardous waste through advanced recycling and recovery processes
  • Expand Sustainable Mobility
    Increase e-mobility to 25% of the vehicle fleet
  • Minimize Air Freight
    Reduce climate-intensive air freight through structured processes and clear guidelinest
  • Strengthen the Circular Economy
    Establish a comprehensive refurbishment program across relevant product segments
  • Expand Renewable Energy,
    Acheive 100% renewable energy in Germany, China, and Poland, with continued global expansion

With solutions for over 100 industries, we support customers in identifying and implementing emissions reduction opportunities in their applications. Reducing our own emissions while enabling more efficient customer operations expands the overall impact of our efforts.

Social: People at the Center

Our employees are key to our success. We respect labor rights, promote equal opportunity, and create clear paths for professional development. These efforts strengthen our appeal as an employer now and in the future.

By appointing a company-wide Human Rights Officer in 2023 and conducting regular training, we are embedding responsibilities into our structures and workflows. Our Social Strategy 2030 builds on this foundation, focusing on employer attractiveness, learning, leadership, safety, health, and diversity.

Learning as the Key to Development

With the NORD Learning Academy (NOLA), we provide a centralized platform for training and knowledge sharing. Employees worldwide can access learning opportunities flexibly based on their needs.

NOLA supports individual growth and professional development, making learning an ongoing, practical, and globally connected part of our culture.

People are the heart and Drive of our sustainability efforts—their safety, development, and diversity secure our future.

Carolin von Rönne

Goals and Impact: Social

Our Social Strategy 2030 focuses on clearly defined priorities. In the short term, the focus is on development, analysis, and the introduction of key programs. Over time, we aim to improve engagement, reduce accident rates, and strengthen diversity. By 2030, we plan to establish global standards, embed processes, and measure progress with defined metrics.

Our Key Social Goals By 2030

  • Strengthen Management and Leadership
    Establish a global leadership model and train managers in effective leadership practices
  • Enhance Employer Attractiveness and Engagement:
    Build a global employer brand and introduce tools to measure satisfaction and retention
  • Improve Occupational Safety
    Strengthen a proactive safety culture focused on accident prevention and early risk identification
  • Advance Diversity and Advancement of Women (STEM & Leadership)
    Increase representation of women in technical and leadership roles through targeted initiatives
  • Expand Learning and Development (NOLA)
    Grow NOLA as a global platform with flexible, on-demand learning opportunities
  • Promote Health and Well-Being
    Enhance health programs with a focus on mental well-being and injury prevention

Our Social Strategy 2030 supports employee development, safety, health, and diversity while shaping a modern and responsible workplace across all locations.

Governance: Structuring Accountability

Effective sustainability requires clear structures, reliable processes, and transparent decision-making. We embed responsible corporate governance across our organization and policies.

Our sustainability management framework integrates environmental, social, and economic considerations. Since its introduction in 2022, we have continued to refine our governance approach, strengthening consistent standards across the Group while supporting our global operations.

<H3>Leadership and Governance</H3>
Our governance approach is built on clear values, defined processes, and an international structure. By strengthening sustainability management and integrating global subsidiaries, we continue to improve transparency and ensure consistent execution across the NORD Group.

<h3>Supply Chain</h3>
We review key stages of our value and supply chains, from procurement through recycling. Clear guidelines, supplier codes of conduct, and digital tools support compliance, risk identification, and collaboration with partners to meet defined requirements.

The NORD DRIVESYSTEMS Group, with its nearly 5,000 employees, has a broad international presence. Our own companies for production, development, assembly, sales, and service are available to our customers in 36 countries. We are planning our sustainability strategy for the entire NORD Group—because, in our view, group-wide Standards should be applied. That is why our goal is to establish global processes and reporting structures (governance) within the NORD Group.

Carolin von Rönne, Jennifer Schütt, and Jörg Niermann

Goals and Impact: Governance

Our 2030 Governance Strategy reinforces material compliance and sustainable corporate governance. Through digitalization, standardization, process improvements, and global alignment, we are building a more resilient, transparent, and adaptable organization.

Our Key Governance Goals by 2030

  • Strengthen Transparency and Reporting
    Conduct independent assessments provide objective performance insights
    Implement digital sustainability reporting ensures efficient processes and high-quality data
  • Ensure Material Compliance and Supply Chain
    Suppport responsible material sourcing supported by structured supplier management and clear guidelines
    Strengthen customer communication enabled by training and organized knowledge management
  • Align Global Standards, Local Responsibility
    Harmonize processes across all locations while maintaining flexibility for local and regulatory requirements

Our governance strategy supports reliable corporate management and clearly defined sustainability processes. By aligning global standards with local responsibility, we effectively manage complex requirements while maintaining flexibility.

Sustainability FAQs And Key Terms

Sustainability includes a range of concepts and terminology. This section explains key topics, abbreviations, and frequently asked questions to provide clear, practical insight into our approach.

At NORD DRIVESYSTEMS, sustainability means systematically integrating environmental, social, and organizational considerations into business processes. This approach is guided by a defined strategy with clear focus areas, goals, and actions.

Our sustainability strategy is based on the ESG framework, which includes Environmental, Social, and Governance areas. This structure helps organize priorities, coordinate actions, and measure progress using defined metrics.

Scope 1 and Scope 2 are categories used to classify greenhouse gas emissions.

Scope 1 includes direct emissions generated within the company, such as those from production processes or company vehicles.

Scope 2 includes indirect emissions from purchased energy, such as electricity or district heating.

For NORD, reducing Scope 1 and Scope 2 means lowering emissions in areas where we have direct influence.

In many industrial applications, the drive system is a key factor in energy efficiency. NORD develops system solutions that include gear units, motors, and drive electronics to help customers identify and apply energy-saving opportunities in their applications.

NORD supports customers through consulting services and solution-based approaches, such as NORD ECO , that help identify efficiency potential and reduce energy consumption. This includes analyzing applications, recommending system improvements, and supporting implementation.

NORD aims to reduce its Scope 1 and Scope 2 greenhouse gas emissions by 45% by 2030 compared to the 2024 baseline.

Additional focus areas include renewable energy, waste reduction, sustainable logistics, and circular economy practices, all supported by defined actions and measurable targets.

Products are a central part of the sustainability strategy. Development processes consider factors such as energy efficiency, resource use, and selected aspects of the product life cycle to support long-term performance and responsible use of materials.

NORD evaluates key areas of its value and supply chains and applies clear standards, supplier codes of conduct, and digital tools to support transparency, compliance, and structured collaboration with suppliers.

Employees are central to NORD’s social strategy. Key focus areas include learning, leadership, safety, health, diversity, and employer attractiveness. These areas are supported through structured programs, defined standards, and ongoing training.

The NORD Learning Academy (NOLA) is a global platform for training and knowledge sharing. It provides employees with flexible access to learning opportunities and supports continuous professional development across the organization.

At NORD, governance refers to how responsible corporate management is structured and implemented. This includes clear processes, defined standards, reporting systems, and the ongoing development of group-wide requirements in areas such as sustainability management and material compliance.