“We consider sustainability an opportunity. Sustainability means doing the right things by promoting projects that support both economic and ecological goals.”
~ Michael Berger, Vice President Corporate Strategy, Innovation and Sustainability
Sustainability at PALFINGER
What does sustainability mean to us?
Sustainability is at the heart of PALFINGER’s strategy, driving innovation, resilience, and growth. By focusing on product development, circular economy, preventive services, and measurable progress, we create lasting value for our planet, our people, our partners, and our investors.
Sustainability as an opportunity
Sustainability at PALFINGER follows a clear strategic direction. It is part of Reach Higher, our Strategy 2030+, with which we are developing our company in a futureoriented manner and consistently aligning it towards long-term value creation. Strategy, brand, and culture work hand in hand and provide the framework for a comprehensive transformation.
In this context, we understand sustainability as a systematic approach that bundles strategic priorities and provides orientation. It is one of the key focus areas within our Strategy 2030+, and a major lever for competitiveness, resilience, and trust. Based on our business activities, our long-term ambitions, and a comprehensive materiality assessment, we have defined five strategic fields of action. They form the framework for our sustainability agenda and guide our decisions across the entire value chain.
Our commitment
Our 5 Strategic Fields of Action
These five fields of action are interlinked, reinforce one another, and together help align environmental responsibility, economic performance, and societal expectations. This ensures that sustainability is embedded for the long term, measurable and effective. Our sustainability agenda is governed by a crossfunctional Sustainability Council. The council is composed of executives from central global and corporate functions, coordinates sustainability topics across the Group, and supports the definition and implementation of targets and measures. It reports directly to the Executive Board, which regularly informs the Supervisory Board about progress and key sustainability topics.
COMMITMENT TO CIRCULAR ECONOMY
Circular Economy
We unlock new revenue streams and extend productvalue with circular economy by penetration of usedequipment, parts and material markets. We fosterresilience in our business by increasing materialprofitability through the entire lifecycle of our products,based on a change towards a circular productstrategy.
DRIVING SUSTAINABLE SOLUTIONS TO REDUCE EMISSIONS AND TO STRENGTHEN RESILIENCE
Climate Action
We drive climate action across our value chain — reducing and avoiding emissions where we can and introducing smarter, low-carbon solutions in both operations and products. Through innovation, collaboration, and transparency, we’re paving the way toward a low-carbon future.
PROTECTING PEOPLE, THE ENVIRONMENT, AND DATA
Product Integrity
We uphold product integrity through rigorous safetystandards and compliance with internationalregulations — protecting PALFINGER, our partners,and our customers. By consistently enhancing andrefining our products and integrating ideas from ouremployees, we strengthen trust, drive innovation, andbuild long-term resilience.
KEY ASPECTS OF GOOD GOVERNANCE
Governance and Compliance
We place governance and compliance at the core ofour organization — ensuring transparency,accountability, and ethical practices. With this, weeffectively protect our valuable brand.
EMPOWERING TEAMS AND TALENTS FOR LONG- TERM SUCCESS
People, Values and Culture
We focus on people, values and culture as we striveto be employer of choice, by offering an inclusive andhealthy workplace with a combination of family andteam spirit and professional international standards.
More information on the Fields of Action:
Circular Economy
At PALFINGER, sustainability begins where our products are used over many years, maintained, adapted, and continuously developed. Circular economy principles are a key lever to conserve resources, preserve value, and strengthen the resilience of our business model.
PALFINGER is currently developing dedicated concepts and circular business models. The aim is to take a more holistic view of the entire product lifecycle and systematically link ecological responsibility with economic benefit.
Even today, PALFINGER implements concrete measures across the lifecycle. Maintenance, repair, and comprehensive spare parts management extend product service life. Refurbishment and second-life approaches, for example for rail vehicles, enable the continued use of existing solutions. Through Railway Refurbishment, a manufacturer-certified service life of more than 30 years is ensured. In addition, PALFINGER is expanding its business with take-back, reconditioning, and resale models, both for complete solutions and spare parts.
Preventive services such as the PALFINGER Oil Check help avoid unnecessary oil changes and save up to 1,500 liters of oil per year. At the same time, recyclable materials are systematically recorded and fed into certified recycling processes to close material loops and reduce environmental impact at the end of the product lifecycle. Step by step, this creates a circular approach that embeds sustainability as an integral part of industrial value creation.
Climate Action
Climate action at PALFINGER starts with our own operations. Through targeted measures in production, energy supply, and processes, we reduce emissions, increase efficiency, and create the foundation for longterm sustainable value creation.
In recent years, we have intensified our focus on energy efficiency, the expansion of renewable energy, and the optimization of resource-intensive processes. A key objective is to avoid or reduce emissions where we have direct influence.
Concrete measures are already making an impact. By optimizing processes, implementing technological improvements, and using data-driven management, we have reduced material use and energy consumption.
At the same time, we continue to increase transparency on emissions and systematically embed climate action in our operational routines. This enables a measurable contribution to emissions reduction while strengthening the efficiency and competitiveness of our sites.
A significant share of PALFINGER’s environmental footprint is generated during the use of our products. This is exactly where our biggest lever for sustainable impact lies.
That is why we are investing specifically in the ongoing development of our product portfolio. Electrification, hybrid solutions, energy-efficient technologies, and digital features reduce emissions in use while increasing performance and cost-efficiency at the same time. Durability, quality, and ease of maintenance extend lifecycles and reduce resource consumption across the entire service life.
The reduction potential is significant: energy efficiency measures can reduce emissions by up to 25%, while electrified solutions enable near-zero emissions in operation.
Product Integrity
Protecting those who work with our products is our top priority. At PALFINGER, product safety means more than meeting technical specifications—it also includes ensuring that our products have no harmful environmental impact and align with our sustainability goals.
Governance and Compliance
Good corporate governance is a core element of sustainable action at PALFINGER. Governance and compliance build trust among customers, partners, employees, and investors. They safeguard integrity and form the foundation for long-term value creation.
Governance and compliance are more than a formal box-ticking exercise. It is an integral part of everyday business. They provide orientation, support sound decision-making, and protect the company across the entire value chain. Clear responsibilities, binding policies, and continuous training ensure that legal requirements are met just as reliably as internal values and expectations.
A central element is a set of binding standards supported by a continuously expanded training and awareness program. In addition to the globally applicable Code of Conduct for employees and the Code of Conduct for Business Partners, this includes training on anti-corruption, anti-harassment, and export control. The approach is complemented by group-wide communication measures and a globally accessible whistleblowing system that allows potential violations to be reported confidentially.
For further details on how PALFINGER is implementing these regulations and embedding sustainability into its operations, we invite stakeholders to explore our non-financial annual report, where we provide insights into our progress and reporting in alignment with the European Sustainability Reporting Standards (ESRS) under the CSRD.
People, Values and Culture
Sustainable transformation can only succeed with the people in the organization. This is why culture, values and mindset at PALFINGER are a central success factor for long-term development and resilience.
Strategy and brand only unfold their impact when they are carried by a lived culture. Clear values provide orientation for collaboration, leadership and responsibility. Not as an abstract guiding principle, but as a benchmark for everyday action.
Culture is shaped in daily practice. In decisions, in how people treat one another, and in the way responsibility is assumed. What ultimately matters is that mindset is visibly lived.
This is how our culture becomes the driving force behind change.
"Sustainability begins in our daily decisions - and its something every one of us can influence."
~ Thiemo Färber, Head of Sustainability
Proof of Work
Governance and Compliance expansion
Conflict Minerals play an important role in responsible sourcing. The minerals tin, tungsten, tantalum, and gold (3TG) can be found in components used across our products. In certain regions – particularly in the Democratic Republic of Congo – the mining and trade of these materials may contribute to conflict and human rights violations. Many OEMs and major customers therefore require strict Conflict-Minerals compliance. 2025 marks a major milestone: PALFINGER is introducing a company-wide process to identify and document 3TG materials across our supply chain, working closely with all relevant suppliers. This is more than compliance – it is a commitment to ethics, responsibility, and a sustainable future.
People, values, and culture as transformation enablers
Sustainability also strengthens PALFINGER's culture of being better every day, now further reinforced through the recent launch of our new Brand, Strategy & Culture framework, which takes our values to the next level. Trainings and activities like our Role Models or the Compliance Week, health & safety improvements, and site certifications for quality, energy, environment, and occupational safety support our long-term transformation.
Circular economy and second-life solutions gaining traction
Circularity is becoming a commercial and ecological value driver: for ÖBB, we refurbish railway service vehicles to maximize uptime and save resources. Preventive service offerings, such as the PALFINGER Oil Check, avoid unnecessary oil changes and save up to 1,500 liters of oil per year.
Climate action and measurable emission reductions
Energy-efficiency programs and technological upgrades delivered substantial CO₂ reductions. A standout example is the steel-optimization simulation in Lengau – saving approx. 500 tons of steel per year. Across the company, PV installations continue to expand, contributing to reduced Scope 1 and 2 emissions, i.e., emissions directly caused by our operations (Scope 1) and emissions from purchased electricity and energy (Scope 2). Together, these measures achieve substantial resource savings and a meaningful reduction of our overall carbon footprint.
Electrified solutions in use — from offshore to the city center
PALFINGER’s strongest sustainability lever lies in product development, since nearly two-thirds of the corporate CO₂ footprint is generated during product use. Recent customer projects underline this impact: the first fully electric offshore slewing cranes (DKJ500e) for the Polish wind farms Bałtyk 2 & 3, and the large-scale PF120 delivery for Baltica 2 demonstrate how electrified technology drives innovation. The growing number of patent applications shows how we continue to improve reliability, reduce emissions, and enable remote maintenance in demanding environments.
In urban applications, the fully electric P 280 CK eDRIVE proved its value during night-time operations in Vienna – quiet, emission-free, and with the same performance as diesel-powered platforms.