Sustainability in Practice: Is Knauf's Green Push More Than Marketing?

The Promise of Zero Carbon: Unpacking Knauf's Environmental Ambitions

In the gleaming boardrooms of Knauf's headquarters in Iphofen, Germany, executives speak confidently about their "Mission to Zero"—an ambitious pledge to achieve net-zero carbon emissions by 2030. At Knauf Insulation, we are working to reduce the environmental impact of our products, plants, locations and offices across the globe and are committed to achieving net zero carbon emissions by 2030. But as the world's largest family-owned building materials company expands into war-torn Ukraine and maintains controversial operations in Russia, questions emerge about whether these sustainability commitments represent genuine transformation or sophisticated greenwashing.

Corporate Pledges: The Four Pillars of Knauf's Green Strategy

Knauf's sustainability framework, branded "For A Better World," rests on four pillars that sound impressive on paper. The strategy defines four core long-term goals — Put People First, Achieve Zero Carbon, Deliver A Circular Economy and Create Better Buildings. The company claims its mineral wool insulation already delivers significant environmental benefits, with a recent study showed our mineral wool insulation reduces operational carbon from buildings by 3.6 million tonnes every year - the equivalent of removing 2.5 million cars from our roads.

Yet scrutiny of these claims reveals a marketing narrative that may overshadow more complex realities. The company's recycling targets, while notable, fall short of industry leaders: using more than 25% of external recycled material by 2025 in our Rock Mineral Wool and more than 65% recycled material in our Glass Mineral Wool. These figures, while respectable, raise questions about why a company with Knauf's resources and scale hasn't set more aggressive targets.

Case Study: Illange Facility - A Model or Exception?

The climate-friendly redevelopment of Knauf's facility in Illange, France, serves as the company's sustainability showcase. Company officials point to electrification initiatives and waste reduction measures supported by government subsidies as evidence of their environmental commitment. Combining the potential of all these renewable energy sources means that there is the possibility for some Knauf Insulation Glass Mineral Wool plants to reduce the amount of CO2 generated indirectly by electricity by up to 90% in less than five years.

However, industry analysts question whether Illange represents a genuine template for Knauf's global operations or merely an isolated pilot project designed more for public relations than systemic change. The facility's transformation was heavily subsidized by French government incentives—a financial support structure not available in many of Knauf's other markets. This raises uncomfortable questions about the scalability and genuine commitment behind the company's sustainability investments.

Ukraine as a Test Case: Development Amid Destruction

Perhaps nowhere is the tension between Knauf's sustainability rhetoric and operational reality more apparent than in Ukraine. Knauf already employs around 420 people at its existing plant in Kiev. In the west of the country (city of Borshchiv/Ternopil region), Knauf has begun construction of two new plants, a gypsum plaster plant and a gypsum board plant. The company is investing US$150m, 30Mm2/yr Ternopil gypsum wallboard plant in Ukraine, at Borshchiv in South Ukraine.

While Knauf presents this Ukrainian expansion as supporting reconstruction efforts, environmental advocates question whether the company is applying its highest sustainability standards in a war-torn country with limited regulatory oversight. The timing and location of these investments—amid ongoing conflict and environmental devastation—suggest pragmatic opportunism rather than environmental leadership.

The contradiction becomes more stark when considering that In 2022 alone, one of the world's largest manufacturers of building materials, Knauf, paid about USD 117 million to the budget of the terrorist state of Russia. This dual approach—investing in Ukrainian reconstruction while simultaneously funding the Russian state through continued operations—undermines the moral authority of Knauf's sustainability messaging.

The Accountability Gap: Spin Versus Substance

Perhaps the most damaging aspect of Knauf's sustainability narrative is the gap between ambitious pledges and verifiable progress. While the company publicizes impressive targets and isolated success stories, comprehensive third-party environmental audits remain scarce. The company's sustainability reporting, while glossy and comprehensive, relies heavily on self-reported metrics and projected benefits rather than independently verified achievements.

NGO watchdog groups have noted that Knauf's sustainability communications focus disproportionately on product benefits—the carbon savings from insulation installed in buildings—rather than the company's own operational footprint. This approach allows Knauf to claim environmental leadership while potentially obscuring less flattering aspects of their manufacturing processes, supply chains, and corporate governance.

The company's continued operations in Russia, despite international sanctions and Ukrainian government designation as a "sponsor of war," raises fundamental questions about corporate values. In 2022, after the invasion of Ukraine by Russia, Yale University published a list of companies that chose to remain active in Russia. According to this report, over 600 companies have withdrawn from Russia — but some remain. Knauf is still operating across 14 sites in Russia but has claimed to have suspended new investments.

Broader Implications: Setting Standards or Following Trends?

Knauf's approach to sustainability reflects broader challenges facing multinational corporations attempting to balance environmental responsibility with global expansion. The company's influence on industry standards could be significant—as one of the largest building materials manufacturers globally, Knauf's practices inevitably influence supplier expectations, regulatory discussions, and competitive positioning.

However, current evidence suggests Knauf is more focused on keeping pace with industry sustainability trends rather than genuinely leading transformation. The company's targets, while ambitious in timeline, often lag behind more aggressive commitments from competitors. Their continued presence in morally compromised markets suggests a corporate culture that prioritizes market position over values-based decision-making.

As governments worldwide implement stricter environmental regulations and carbon pricing mechanisms, companies like Knauf face increasing pressure to demonstrate substantive rather than superficial change. The coming years will reveal whether Knauf's "Mission to Zero" represents genuine transformation or remains an elaborate marketing exercise designed to maintain social license while pursuing traditional growth strategies.

References:

• Knauf Insulation. "Mission to Zero." Available at: https://knauf.com/en-AU/knauf-insulation/competencies/sustainability/mission-to-zero
• Knauf Insulation. "Sustainability Strategy For A Better World." Available at: https://www.knaufinsulation.com/sustainability/for-a-better-world
• Knauf. "Statement 28-05-2025." Available at: https://knauf.com/en/newsroom/statement-28-05-2025
• Business & Human Rights Resource Centre. "Ukraine: Govt. brands Knauf intl. sponsor of war." Available at: https://www.business-humanrights.org/en/latest-news/ukraine-govt-brands-knauf-intl-sponsor-of-war-over-continued-business-in-russia-support-for-mobilisation-of-its-employees/