A
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Accident rates
BLG LOGISTICS measures the number of accidents on the basis of two independent rates: the rate used previously represents the relative frequency of reportable accidents per 1,000 full-time employees. The Lost Time Injury Frequency Rate (LTIFR), on the other hand, includes all accidents involving downtime and puts them in relation to 1,000,000 hours worked.
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Amortization
Recovery of invested capital through income.
B
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Business Continuity Management (BCM)
Business continuity management refers to the development of strategies, plans, and actions to protect activities or processes – the disruption of which would cause serious damage or devastating loss to an organization – or to enable alternative operations. The goal is thus to ensure the continuity of the company in the face of risks with a high degree of damage.
C
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Cash flow
Key figure that describes the balance of cash and cash equivalent receipts and payments within the financial year.
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Cash-generating unit
Smallest identifiable group of assets that, by virtue of continued use, generates inflows of liquidity which, in turn, are largely independent of the cash inflows of other assets.
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CDP
The CDP (formerly Carbon Disclosure Project) is a non-profit organization that provides a platform for publishing environmental data from companies and municipalities. They are invited to complete questionnaires on a voluntary basis in order to collect information on CO2 emissions, climate risks, etc.
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CKD
With the CKD (Completely Knocked Down) method, vehicle parts from the individual deliveries of suppliers and producers are combined, packaged into specific kits and then delivered by ocean transport to the corresponding assembly plants abroad.
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CO2 equivalents (CO2e)
Measure to standardize the greenhouse effect of different greenhouse gases. The reference value is carbon dioxide CO2. DIN 16258:2013-03 takes into account: CO2, CH4, N2O, HFC, PFC and SF6. These six gases are also listed in Annex A to the Kyoto Protocol to the United Nations Framework Convention on Climate Change. GEMIS takes into account: CO2, CH4, N2O, C6F14 and C2F6.
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Compliance
Collective term for measures taken to ensure adherence to all legal obligations, provisions and directives relevant for a company, as well as to corporate governance. Another objective of compliance is to achieve harmonization between corporate actions and social values.
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Consolidation
Method of accounting for including all of the assets, liabilities and equity of subsidiaries in the parent’s consolidated financial statements.
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Corporate governance
Rights and obligations of the various parties involved in the company, in particular the shareholders, Board of Management and Supervisory Board.
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Corporate Sustainability Reporting Directive (CSRD)
The CSRD was adopted by the European Parliament in November 2022 and specifies the scope and type of companies’ sustainability reporting from the 2024 financial year (previously non-financial reporting).
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CSR
Corporate Social Responsibility. Social responsibility of companies as part of sustainable business operations.
D
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Derivative financial instruments
Financial instruments that are traditionally used to hedge existing investments or liabilities and whose value is derived from a reference investment (e.g. share or bond).
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Discounted cash flow method
Measurement method: future cash flows are discounted with the help of the cost of capital on the measurement date. Taxes due are included in the measurement. The present value determined in this way is the discounted cash flow.
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Double materiality analysis (DMA)
The DMA according to the CSRD has two dimensions: the materiality of impacts (positive & negative impacts) and financial materiality (risks & opportunities). A sustainability aspect fulfills the criterion of double materiality if it is material from the point of view of impacts and/or from a financial point of view, and must then be reported in accordance with the CSRD.
E
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EBIT
Earnings before interest and taxes. EBIT is the operating result of a company for a financial year.
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EBITDA
Earnings before interest, taxes, depreciation and amortization.
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EBT margin
EBT divided by revenue. The EBT margin is an indicator of a company's efficiency and profitability.
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EBT
Earnings before taxes. Output metric for determining earning power independently of uncontrollable tax effects. It is also suitable for measuring profitability in an international comparison.
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Equity-Method/At Equity
Method for recognition of equity investments that are not included in the consolidated financial statements with all assets, liabilities and equity on a consolidation basis. In this case, the carrying amount of the investment is increased or reduced by the change in the proportionate equity of the investment. This change is recognized in the parent company’s statement of profit or loss.
F
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Forward interest rate swap
A forward interest rate swap is a contractual agreement used to hedge variable interest payment flows at a future date (exchange of fixed and variable interest payment flows), in which the terms can be defined immediately at the time when the hedging instrument is entered into.
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Full consolidation
Method of accounting that involves the inclusion of subsidiaries in the combined financial statements with all assets and liabilities.
G
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German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG)
Law on corporate due diligence for the prevention of human rights violations along the supply chain in force in Germany from January 1, 2023.
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Global Emission Model for Integrated Systems (GEMIS)
Life cycle and material flow analysis model with integrated database for energy, material and transport systems. It is offered for download free of charge by the International Institute for Sustainability Analyses and Strategy (IINAS) and is used in over 30 countries for environmental and cost analysis.
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Global Reporting Initiative (GRI)
An international organization that develops standards for sustainability reporting involving various stakeholders (including corporations, and human rights and environmental organizations). The GRI standards are the most widely used framework for sustainability reporting across the globe.
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Greenhouse Gas Protocol
The world's most widely used standard for uniformly measuring greenhouse gas emissions and the related reporting.
H
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Hedging
A strategy of protecting against interest rate, currency and price risks through derivative financial instruments (options, swaps, forward transactions, etc.).
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Hypothetical derivative method
Method of measuring the effectiveness of derivative financial instruments by comparing the change in market value of the derivative to that of a hypothetical derivative that optimally hedges the risk to be hedged against.
I
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IAS
International Accounting Standards (see also IFRS).
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IASB
International Accounting Standards Board: body that develops and publishes International Accounting Standards.
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IFRIC
International Financial Reporting Interpretations Committee: body that publishes interpretations regarding the IFRS accounting standards. After approval by the IASB the interpretations are binding for all IFRS users.
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IFRS
International Financial Reporting Standards (“IASs” until 2001): international accounting regulations that are published by an international independent body (IASB) with the aim of creating a transparent and comparable accounting system that can be applied by companies and organizations all over the world.
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Impairment test
Test to determine the recoverable amount of an asset in accordance with IFRS.
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Information Security Management System (ISMS)
An Information Security Management System (ISMS) defines structures and processes that can be used to ensure, control, monitor and continually improve information security in a company.
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Interest rate swap
An interest rate swap describes a contractual agreement on the exchange of interest payment flows in the same currency where the cash flows are based on a defined amount of capital.
J
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Joint venture
Legally and organizationally independent company that is jointly established or acquired by at least two independent partners.
L
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Lean Management
Approach to process optimization to minimize waste and harmonize processes.
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Liability method
Method of measurement of deferred tax assets and deferred tax liabilities. A measurement is carried out on the basis of the tax rate that is expected at the time when the future tax burden or relief arises.
M
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Matching principle
IFRS: recognition of income and expense of the same events in the same period.
O
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Other comprehensive income
All income and expenses that are not recognized in the net profit or loss for the year. This item includes, for example, foreign currency gains and losses from the translation of foreign financial statements that are reported directly in equity in accordance with IAS 21.
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Other long-term benefits
Additional long-term employee benefits that are reported under non-current provisions.
P
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Power Purchase Agreements (PPA)
A PPA is a power supply contract concluded between a power consumer (business or end user) and a power producer (in this case, renewable energies). A distinction is made between on-site PPA (electricity generation at the place of consumption, e.g. rooftop photovoltaic systems) and off-site PPA (electricity generation not at the place of consumption, e.g. offshore wind farms).
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Profit retention
Profits retained in a company for future investment.
R
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RoCE
Return on capital employed. Business key performance indicator that measures how efficiently companies use the capital invested. RoCE is calculated by dividing EBIT by the capital invested in the company.
S
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Science Based Targets initiative (SBTi)
Association of leading environmental and climate protection organizations that define a framework that allows companies to reduce their own greenhouse gas emissions on a scientific basis. One objective under the requirements of the SBTi is to reduce global warming to well below 2°C, in line with the requirements laid down in the Paris Climate Agreement.
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Six Sigma
Management system for process improvement, statistical quality targets and, at the same time, a method of quality management. Its core element is the description, measurement, analysis, improvement and monitoring of business processes by statistical means.
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Stage of completion method (SoC)
IFRS: recognition of service orders according to their progress.
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Sustainable Development Goals (SDGs)
In 2015, the United Nations adopted a total of 17 Sustainable Development Goals (SDGs), which are to be implemented by 2030. The SDGs shape the debate on sustainability at national and international level and, as a global target system, offer a common language and a compass for the challenges faced in the 21st century.
T
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TEU
Twenty-foot container equivalent unit. Standardized container unit with a length of 20 feet (1 foot = 30 cm).
U
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United Nations Global Compact
A global pact between businesses and the United Nations to make globalization more socially and environmentally sustainable. Members undertake to comply with ten principles in the areas of employee and human rights, environmental protection and the prevention of corruption. The UN Global Compact Network Germany supports companies in strategically anchoring the ten goals within Germany.
W
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Working capital
Difference between current assets and current liabilities. Used to evaluate the liquidity of the company.