Material impacts, risks and opportunities and their interaction with the company’s strategy and business model

CLIMATE CHANGE

Climate change adaptation

HHLA’s business activities contribute to climate-resilient supply chains for customers, bolstering security of supply and economic stability.

Risk: Climate change means that there are flood risks at some of HHLA’s own locations, which could have negative financial impacts, in particular in the form of operational shutdowns, clean-up work, damage to facilities, property, goods and buildings, as well as additional personnel costs.

Risk: Climate change means that there are extreme weather risks affecting some of HHLA’s own operations, which could have negative financial impacts, in particular in the form of operational disruption due to route closures, loss of performance/production downtime and damage to facilities.

Climate change mitigation

CO₂ emissions from HHLA’s own activities and those of external parties and customers, for example those produced by ships while at berth and by external trucking and rail transport companies during their stay at HHLA terminals, contribute to climate change.

HHLA’s CO₂-efficient business activities contribute to CO₂-efficient supply chains for customers contributing to climate change mitigation as a result.

Opportunity: Achieving climate neutrality for the properties in the Speicherstadt historical warehouse district could have positive financial impacts through corresponding competitive advantages and customer preferences.

Energy

HHLA contributes to climate change by using fossil fuels in its own business activities.

By operating energy-efficient facilities, HHLA contributes to its customers’ energy-efficient supply chains and ultimately to climate change mitigation.

Risk: Volatile energy prices could result in unplanned additional costs for some of HHLA’s own companies in the Container, Intermodal and Logistics segments, with negative financial impacts.

BIODIVERSITY AND ECOSYSTEMS

Impacts and dependencies on ecosystem services

Risk: Siltation of the river Elbe could lead to negative financial impacts due to location risks posed by non-accessibility or limited accessibility of the Port of Hamburg.

Resource inflows, incl. resource use

Business activities lead to the use of resources through terminal equipment, raw materials, consumables and supplies, as well as construction work at terminals, contributing to resource consumption.

The company’s own activities lead to resources being tied up because equipment can sometimes have a long service life, meaning that it is not available to be used for other purposes.

The high level of recyclability of equipment and building materials in the Container, Intermodal, Logistics and Real Estate segments contributes to circular economy.

The long equipment service life, which is extended through servicing and maintenance, avoids the use of new resources.

OWN WORKFORCE

Working conditions

Secure employment

Ensuring secure jobs within HHLA’s own operations leads to financial stability and quality of life.

Working time

Creating fair and transparent working conditions, including fair, predictable and socially acceptable shift and working hours models for HHLA’s own workforce within the own operations, helps to secure living standards.

Adequate wages

Creating fair and transparent working conditions, including adequate wages for HHLA’s own workforce within the own operations, helps to secure living standards.

Work-life balance

Creating fair and transparent working conditions, including ensuring work-life balance for HHLA’s own workforce within the own operations, helps to secure living standards.

Health and safety

Protecting health and well-being by ensuring safe working conditions in all own operations contributes to increasing the motivation and satisfaction of HHLA’s own workforce, making them more committed employees.

Maintaining the physical and mental health of HHLA’s own workforce in all areas of our business is important to ensure their employability.

Despite stringent safety measures, occupational accidents will inevitably occur, affecting our own workforce.

Equal treatment and opportunities for all

Training and skills development

Strengthening a learning-focused environment, collaboration and employee satisfaction across all business areas promotes motivation and employability.

Risk: Lack of qualifications and training of the company’s own employees in Hamburg could have a negative financial impact through reduced productivity, customer complaints and legal violations.

Corporate culture

Risk: Breaches of provisions of the German Supply Chain Due Diligence Act (LkSG) along the upstream value chain could have negative financial effects in the form of reputational damage and fines.

Political engagement and lobbying activities

The positive impacts of HHLA’s political engagement and lobbying activities strengthen its competitive standing and allow it to tap into new business areas and promote innovation through better access to funding and political dialogue, which ultimately promotes HHLA’s development opportunities across the Group and contributes to making the economy more stable.

Management of relationships with suppliers

Risk: Dependency on suppliers in the upstream value chain could have negative financial effects due to increased purchase prices and supply bottlenecks.

Opportunity: Concluding favourable contracts could allow the company to generate positive financial effects for its own operations in Hamburg in the form of cost savings with suppliers and secured income from clients.