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KRAIBURG TPE Releases First Global Sustainability Report

KRAIBURG TPE Releases First Global Sustainability Report

German elastomer manufacturer releases first global sustainability report

KRAIBURG TPE has released its first company-wide sustainability report. The document covers all three of the manufacturer's production sites and follows a structure based on the European Sustainability Reporting Standards. This marks a shift from earlier site-specific disclosures to a single consolidated format.

The report spans the calendar year 2025 and was published in August 2026. It runs to 39 pages and covers environmental, social, and governance performance across the company's operations in Germany, Malaysia, and the United States.

For UK businesses that source thermoplastic elastomers, the report offers visibility into a supplier's climate commitments, material sourcing practices, and circular economy initiatives. These details matter increasingly for procurement decisions, tender submissions, and supply chain due diligence.

Company background and reporting approach

KRAIBURG TPE is a thermoplastic elastomer compounder headquartered in Waldkraiburg, Germany. The company operates manufacturing facilities in Germany, Malaysia, and the United States. Thermoplastic elastomers combine the processing characteristics of plastics with the functional properties of rubber, and they are used in sectors including automotive, construction, and consumer goods.

The new report brings together ESG data from all three sites. Previously, the company published more limited or regionally focused disclosures. This consolidated approach reflects the direction of travel in corporate sustainability reporting, particularly in sectors with international supply chains.

The report uses a simplified version of the European Sustainability Reporting Standards as its framework. ESRS is the reporting structure underpinning the Corporate Sustainability Reporting Directive, which applies to large companies operating in the European Union. While KRAIBURG TPE is not necessarily within scope of the full CSRD requirements, adopting ESRS voluntarily signals alignment with emerging European norms.

What the report covers

The document addresses several core areas of sustainability performance. Climate action features prominently, with data on energy use and emissions across production sites. The company reports that its facilities in Germany and the United States now run on 100% renewable electricity. This reduces operational emissions, though it does not address embedded emissions in purchased materials or downstream product use.

Material innovation is another focus. The report highlights expanded use of recycled content in formulations, bio-based alternatives, and mass-balanced solutions certified under the ISCC PLUS standard. Mass balance is an accounting method that tracks sustainable materials through complex supply chains, allowing companies to allocate certified content to specific product lines even when physical material is blended.

Circular economy initiatives include the Loop TPE programme. This involves taking back used elastomer materials from customers, reprocessing them, and reintroducing them into production. The viability of such schemes depends on material quality, contamination levels, and the economics of reverse logistics. However, they represent an alternative to downcycling or disposal.

The report also covers responsible sourcing and supply chain management. This includes governance structures, compliance systems, and employee well-being programmes. All three production sites have achieved EcoVadis Gold ratings, a third-party assessment of sustainability performance used widely in procurement and supplier evaluation.

Implications for UK businesses sourcing elastomers

If your business sources thermoplastic elastomers, this type of supplier reporting has practical relevance. First, it provides evidence for your own sustainability disclosures. Many UK businesses now face questions from customers, investors, or lenders about the environmental performance of their supply chains. Supplier reports that follow recognized standards make it easier to demonstrate due diligence.

Second, renewable energy use and recycled content in materials can reduce the carbon footprint of your purchased goods. This matters if you report Scope 3 emissions under the Streamlined Energy and Carbon Reporting regulations, or if you need to meet carbon reduction targets tied to public sector contracts under Procurement Policy Note 06/21.

Third, circular economy credentials may strengthen your position in tenders. Public buyers increasingly evaluate bidders on their approach to waste reduction and material circularity. Demonstrating that your supply chain includes partners with take-back schemes or recycled content options can differentiate your submission.

Fourth, third-party ratings like EcoVadis provide an external benchmark. If you are building a supplier sustainability scorecard, having a rating from a recognized platform reduces the need for your own detailed supplier audits. It also offers a degree of standardization across different suppliers and geographies.

However, it is important to distinguish between disclosure and performance. A sustainability report shows what a company is measuring and how it frames its commitments. It does not automatically mean those commitments align with your own targets or that progress is sufficient for your needs. You still need to assess whether a supplier's performance supports your specific goals.

Essential points for procurement and compliance teams

What this means for supply chain strategy

Supplier sustainability reporting is becoming table stakes in many sectors. For businesses that source materials internationally, the shift toward standardized frameworks like ESRS makes it easier to compare suppliers and identify gaps. This is particularly relevant if you need to consolidate supply chain data for your own reporting obligations.

Renewable energy in production is one of the more straightforward levers for reducing product carbon footprints. When a supplier switches to renewable electricity, the emissions associated with manufacturing drop. This flows through to the carbon intensity of the materials you purchase, which in turn affects your Scope 3 calculations. If you report under SECR or track progress against a net zero commitment, these supplier-level changes matter.

Material composition is another area where supplier transparency helps. Recycled content and bio-based materials typically have lower embodied carbon than virgin petrochemical feedstocks, though this depends on feedstock sourcing, processing methods, and allocation methodologies. Mass-balanced solutions add complexity, because the certified material may not physically end up in your specific product. Nevertheless, the approach is recognized under standards like ISCC PLUS and can support credible sustainability claims.

Circular economy initiatives like take-back schemes require operational coordination. You need to manage reverse logistics, ensure material quality for reprocessing, and potentially adjust product design to facilitate recovery. These are not trivial commitments, but they can strengthen your positioning with customers who prioritize waste reduction and resource efficiency.

Governance and compliance also deserve attention. A supplier with robust management systems, third-party audits, and documented policies reduces your exposure to reputational and regulatory risk. This is especially important in sectors with high public visibility or where supply chain issues can trigger scrutiny from regulators, media, or campaign groups.

Renewable electricity and operational emissions

The shift to 100% renewable electricity at KRAIBURG TPE's German and US sites represents tangible progress on operational emissions. Renewable electricity reduces Scope 2 emissions for the manufacturer, which in turn reduces Scope 3 emissions for customers who purchase their products. This is a direct benefit for businesses that need to report or reduce supply chain emissions.

However, electricity is only part of the picture. Manufacturing thermoplastic elastomers also involves purchased raw materials, many of which are derived from petrochemical feedstocks. These materials carry significant embodied carbon, which does not disappear when renewable electricity is used in processing. Therefore, while renewable energy is important, it does not eliminate the carbon footprint of the finished product.

For businesses evaluating suppliers, it is worth asking what proportion of total emissions comes from electricity versus materials, transport, and other sources. This helps you understand where the biggest opportunities for reduction lie, and whether a supplier's efforts align with your priorities.

Recognized standards and external verification

The use of ESRS as a reporting framework and EcoVadis as an assessment platform both provide external reference points. ESRS is the standard developed by the European Financial Reporting Advisory Group for use under the Corporate Sustainability Reporting Directive. It sets out specific disclosure requirements across environmental, social, and governance topics. By adopting ESRS voluntarily, KRAIBURG TPE is aligning its reporting with the expectations that will apply to many European companies from 2024 onwards.

EcoVadis is a supplier sustainability rating platform used by thousands of companies worldwide. It assesses performance across environment, labor practices, ethics, and sustainable procurement. A Gold rating places a supplier in the top 5% of companies assessed on the platform. For procurement teams, this provides a shorthand indicator of sustainability performance that can be referenced in supplier selection, contract terms, or internal scorecards.

External verification adds credibility. Self-reported data is useful, but third-party assessment reduces the risk of greenwashing and provides assurance that claims are substantiated. If you are building a sustainable supply chain, prioritizing suppliers with recognized certifications and ratings makes due diligence more efficient.

Where to find further information

The full sustainability report is available on the KRAIBURG TPE website. The 39-page document provides detailed data on emissions, energy use, material innovation, and social performance across the company's three production sites.

For UK businesses seeking guidance on supply chain sustainability and Scope 3 emissions reporting, the UK government provides resources through the greenhouse gas conversion factors for company reporting published annually by the Department for Energy Security and Net Zero. These factors help calculate emissions from purchased goods and services.

Information on sustainable procurement in public sector contracts is available through Procurement Policy Note 06/21, which sets out carbon reduction plan requirements for suppliers bidding on central government contracts above £5 million per year.

The Streamlined Energy and Carbon Reporting regulations outline mandatory disclosure requirements for large UK companies, including Scope 1, 2, and 3 emissions reporting where applicable. Understanding these requirements helps businesses assess what supply chain data they need to collect.

For businesses looking to strengthen their own carbon reporting and supply chain management, our net zero program provides practical support on measuring emissions, engaging suppliers, and building compliance-ready documentation for tenders and regulatory filings.