Message from the Board of Management
Ladies and Gentlemen,
Against a backdrop of global unrest and growing challenges, TÜV SÜD can look back on a financially successful year. This achievement serves as the fundamental message of this Annual Report. We are, of course, affected by the armed conflicts in Ukraine and the Middle East; we feel the pressures of inflation and in particular the soaring cost of energy; and we are acutely aware of the climate crisis and its negative impact. These external factors affect all of us: whole industries are undergoing structural change and exploring new business models. In this environment, TÜV SÜD has proven to be both resilient and open to change. We are confident that we are well positioned to meet the challenges of today and those of the future.
Our figures for 2023 speak for themselves. For the first time our sales exceeded three billion euros. We are also pleased with our earnings performance, to which all divisions and regions contributed. We are growing, together with customers across the globe who appreciate our range of services. Our workforce is growing, too – we now employ almost 28,000 people worldwide.
Our goal is to continue this success story. In 2023 we revised and refocused our strategy, which has five pillars: focus & core market growth; advanced value adding services; sustainability transformation; operational & customer excellence; people. We are currently working on numerous strategic initiatives for the various businesses within the Group, one of which is a comprehensive discussion of our leadership commitments. We recognize that our employees are key to our success and that we can only shape a successful future by working together.
Like many companies, we are facing enormous challenges recruiting qualified personnel for the years ahead. In many of our core markets we are already experiencing fierce competition for the best talent. And this trend is expected to intensify in the future. That’s why we are not only investing into recruiting of new talent, but also in creating a truly attractive work environment which offers training and ongoing professional learning and development opportunities to all employees. In addition to this we are updating our HR frameworks and our work, development and leadership culture, with a strong commitment to diversity and inclusivity.
FORWARD is the title of this annual report. And this is also the umbrella term for numerous projects which will allow us to master the challenges around us, going forward. We have started a comprehensive development initiative, scrutinizing what we do and how we do things. The objective is to strengthen collaboration within TÜV SÜD, across our entire global network, and to make even better use of synergies. As a company we want to become more digital, more collaborative, more transparent, and faster. These changes will benefit both our customers and our employees.
We remain committed to our goal of ensuring that our business operations become climate-friendly by 2025 and we are working hard to reduce our greenhouse gas emissions. This includes improving energy efficiency at our facilities and implementing our climate goals with regard to our supply chain. Starting in 2025, we will offset any unavoidable greenhouse gas emissions from our business operations by purchasing carbon certificates from reputable providers. Our progress is recognized by the EcoVadis sustainability rating. In 2023 we were awarded platinum status for the second time. And of course, we are not stopping here; in early 2024 our new Corporate Sustainability Office (CSO) started operations. We will work on implementing measures to reduce greenhouse gas emissions across the entire Group, in line with our sustainability objectives. Additionally, the CSO will collaborate with our operating divisions to consolidate and enhance sustainability services for our customers and bring these offerings to market maturity.
Technology is in our DNA. As a company we have always embraced technological change. Today, this includes use of artificial intelligence (AI). AI has the potential to profoundly change many areas of our lives, and we all want to make sure AI works well, for everyone, and can be used safely. And that is, of course, also true for TÜV SÜD and the way we develop and use AI applications. Our internal AI guidelines govern the responsible use of AI within the Group. Our divisions and regional units are developing AI applications that can improve our activities and processes. However, in this upcoming era of “smart” digital testing services, we will keep relying on human intelligence and human ingenuity. Our people, their expertise and experience are at the heart of what we do.
Our people are crucial to our success, and they make TÜV SÜD a stronger company. We greatly appreciate them, their dedication, their knowledge, their drive. We, the Board of Management, would like to extend our heartfelt gratitude to all our colleagues.
Our business model is solid and highly competitive. We have fine-tuned our strategy. And our colleagues are dedicated to go the extra mile in the face of tough competition. We are highly confident going forward into 2024 and beyond. And the motto – FORWARD – will continue to guide us in the future.
Munich, March 27, 2024
The Board of Management of TÜV SÜD AG
Dr. Johannes Bussmann
Chairman of the Board of Management
Ishan Palit
Member of the Board of Management
Prof. Dr. Matthias J. Rapp
Member of the Board of Management