MAN GRI Report
Corporate Responsibility at MAN 2017 Engineering the Future – since 1758. MAN SE 2 MAN GRI Report 2017 OVERVIEW
Overview PAGE 01 PAGE 02 PAGE 05 Foreword FOREWORD PORTRAIT OUR APPROACH Portrait OF THE
Our approach MAN GROUP
Products
Production
Supply chain PAGE 09 PAGE 18 PAGE 27 PAGE 31 PAGE 44 People PRODUCTS PRODUCTION SUPPLY CHAIN PEOPLE SOCIETY AND Society and integrity INTEGRITY
Annex
PAGE 50 OVERVIEW OF KEY INDICATORS ANNEX GRI CONTENT INDEX AND UN GLOBAL COMPACT COMMUNICATION ON PROGRESS INDEPENDENT PRACTITIONER’S LIMITED ASSURANCE REPORT ABOUT THIS REPORT CREDITS & ADDITIONAL INFORMATION 01 MAN GRI Report 2017 Foreword
Dear Readers,
MAN’s business success is closely linked to global challenges and mega- needs on site. The twin 2.5 megawatt natural gas units mark a significant Overview trends. Climate change and digitalization have a direct impact on our milestone in MAN’s Climate Strategy. Foreword business model. We need to be agile if we want to shape the fundamentally Our MAN Impact Accelerator program, which we launched in 2017, changing mobility world of tomorrow. The development of alternative supports social startups in the transportation sector that are coming up Portrait drive systems and transportation and energy solutions that are fit for the with new ideas in response to global population growth and urbanization.
Our approach future is at the heart of our work. We initiated the program in collaboration with the Yunus Social Business Electricity is set to be the drive technology of the future – at least Initiative launched by Nobel Peace Prize winner Muhammad Yunus. Eight Products around town and on shorter journeys. We are preparing for the volume companies from Europe, India, and South Africa were awarded funding in production of purely electric city buses and trucks. As we move toward the fall of 2017 following an intensive application phase. Production future-proof mobility solutions, public transportation companies and One particular focal point of our social commitment is education Supply chain fleet operators are still faced with challenges extending beyond the actual as a human right. We see education as the basis for social participation and vehicle. This motivated us to set up a specialized consultancy team in the as a prerequisite for successful integration. MAN stepped up its refugee People year under review: in addition to vehicle-related questions, MAN Trans- integration activities further in 2017, helping 89 migrants gain a foothold Society and integrity port Solutions also covers aspects relating to infrastructure, energy in the working world by offering them initial vocational training, appren- requirements, maintenance, and fleet. This underpins our transformation ticeships, and internships. Annex from a commercial vehicle manufacturer to a provider of smart and sus- Our CR Strategy 2020+ provides a roadmap for sustainable develop tainable transportation solutions. ment, while this report makes our contribution transparent and presents MAN is helping to make climate-friendly shipping reality with its both the progress made and the challenges that lie ahead. Prepared in dual-fuel engines, which are capable of operating on both gaseous and accordance with the standards of the Global Reporting Initiative and liquid fuels. The retrofitting of conventional marine engines plays a deci- checked by an independent auditing firm, it presents performance indica- sive role in this respect: switching to liquefied natural gas (LNG) allows tors and data that are relevant to sustainable business practices. And it nitrogen oxide and sulfur emissions, as well as CO₂ emissions, to be sig- outlines the ways in which we live up to our commitment to the Ten Prin- nificantly reduced. In the year under review, MAN successfully completed ciples of corporate responsibility defined by the UN Global Compact. We the world's first conversion of a container ship to dual-fuel operation. hope that you will find this report informative. For us, climate protection begins in-house: we have moved a step closer to reaching our climate goal for our production operations – a 25% Sincerely, reduction in CO₂ emissions by 2020. Compared with the base year of 2008, our CO₂ emissions were down by 23.7% in the year under review. This development was helped along by our combined heat and power plant in Munich, for example, which enables us to generate up to 20% of our power Joachim Drees Chief Executive Officer of MAN SE 02 MAN GRI Report 2017 Portrait of the MAN Group WE PROVIDE EFFICIENT TRANSPORTATION AND ENERGY SOLUTIONS
Overview 2017 2017
Foreword
Portrait
Our approach
Products 54,297employees worldwide 30production sites in 14 countries Production
Supply chain
People
Society and integrity
Annex €14.3billion sales revenue €16.1billion order intake
4divisions: MAN Truck & Bus MAN Latin America MAN Diesel & Turbo €566million operating profit Renk For more information: www.corporate.man.eu 03 MAN GRI Report 2017 Portrait of the MAN Group
The MAN Group focus on transportation and energy. Technology leadership remains a key Overview The MAN Group is one of Europe's leading commercial vehicle, engine, factor in the success of MAN. We develop innovative products and solu- Foreword and mechanical engineering companies. As a producer of trucks, buses, tions that meet the needs of customers and markets – while focusing on vans, diesel engines, turbomachinery, and special gear units, we hold lead- reducing fuel consumption and emissions and on generating energy Portrait ing market positions in all our divisions. efficiently, reliably, and ecologically. In addition, MAN is moving to lever-
Our approach age the opportunities of digitalization and to unlock new potential Long-term growth strategy through new business models based on innovative mobility solutions. Products Global demand for innovative solutions in the transportation and energy sectors will continue to rise overall. This means that going forward, the Production MAN Group will continue to pursue its profitable growth strategy with a Supply chain
People The divisions Society and integrity
Annex Commercial Vehicles Power Engineering
MAN Truck & Bus MAN Latin America MAN Diesel & Turbo Renk (76%)
is the largest company in the MAN Group is one of the largest truck manufacturers is one of the world's leading suppliers is a globally recognized manufacturer of and a leading supplier of commercial in Brazil. Three of the five best-selling of large-bore diesel and gas-powered high-quality special gear units, propulsion vehicles and transportation solutions. The truck models in Brazil are made by engines and also one of the leading sup- components, and testing systems. new TGE makes MAN a full-range provider MAN Latin America. The company is a pliers of turbomachinery on the global of commercial vehicles weighing from supplier of commercial vehicles and bus market. 3 t through 250 t. chassis for growth markets, marketed under both Volkswagen and MAN brands.
2017 sales revenue
€10,037 million €1,141 million €2,832 million €469 million 04 MAN GRI Report 2017 Portrait of the MAN Group
Economic environment The MAN Group’s operating return on sales increased noticeably from Overview The global economy picked up speed in 2017, driven by growth in 1.5% to 3.9%. MAN does not take extensive measures to optimize its taxes. Foreword economic activity worldwide. In light of this, demand improved in many Further information on our financial performance is available in our markets that are relevant for the MAN Group. At the same time, competi- 2017 Annual Report. Portrait tion remained intense and price pressure was again high. As expected,
Our approach 2017 was thus both a challenging and an eventful year for us. Volkswagen AG’s stake in MAN SE Demand for trucks, vans, and buses in the Commercial Vehicles A domination and profit and loss transfer agreement (DPLTA) between Products business area recorded largely positive growth in key regions. Following Truck & Bus GmbH (now Volkswagen Truck & Bus GmbH), a wholly owned the strong recovery in the previous year, the European commercial vehi- subsidiary of Volkswagen AG, and MAN SE was entered into the commer- Production cles market was unchanged at a high level. The Latin American economy cial register on July 16, 2013, and has been effective since that date. On Supply chain bottomed out, and exports from Brazil accelerated. The Brazilian commer- December 31, 2017, Volkswagen Truck & Bus GmbH held 75.73% of MAN SE’s cial vehicles market experienced a strong upward trend in the second half voting rights and 74.55% of its share capital. On December 31, 2017, 24.27% People of the year. Russia also recorded growth, and developments in China and of MAN’s common shares were in free float. Society and integrity India, too, were positive. The situation improved slightly in the Power Engineering business Capital expenditures Annex area, but remained strained overall. The marine market and the market for In the 2017 fiscal year, the MAN Group incurred capital expenditures total- turbomachinery posted moderate growth at a low level. ing €845 million, as against €861 million in the previous year. Investments Given this difficult environment, the MAN Group performed well in intangible assets increased, while investments in property, plant, and in 2017: we generated Group sales revenue of €14.3 billion in the year equipment were down on the previous year's level. In view of the challeng- under review, up by a considerable 5.1% on the previous year. Our operat- ing economic environment, we are reviewing planned capital expendi- ing profit came to €566 million, which represents an improvement of tures with particular scrutiny and prioritizing them systematically. We are some €362 million. We paid out guaranteed dividends to our shareholders deliberately retaining the necessary capital expenditures that will lead of €3.07 per share in 2017. to long-term growth and have the potential to improve our operational efficiency. 05 MAN GRI Report 2017 OUR APPROACH
MAN’s future performance depends on understanding global challenges and identifying Overview the opportunities and risks with regard not only to sustainable development, but also Foreword to our commercial success. We make a conscious effort to address what is expected Portrait of us by our customers, policymakers, and society at large and offer specific answers.
Our approach In doing so, we always put the human aspect at the center of our endeavors.
Products
Production
Supply chain identify the risks and opportunities arising from these challenges at an People CR strategy early stage and react accordingly. We take responsibility along our entire Society and integrity Corporate responsibility (CR) has been an integral part of MAN’s corporate value chain, focusing on five fields of action: strategy since 2010. And our CR strategy is MAN’s response to the global Annex challenges which have material significance for the Group. It allows us to
RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY FOR PRODUCTS IN PRODUCTION IN THE SUPPLY FOR PEOPLE FOR SOCIETY CHAIN AND INTEGRITY
, FROM PAGE 09 , FROM PAGE 18 , FROM PAGE 27 , FROM PAGE 31 , FROM PAGE 44 06 MAN GRI Report 2017 Our approach
MAN as part of society The challenge of climate change Overview In 2015, the United Nations adopted the Sustainable Development Goals Foreword (SDGs). Achieving these sustainability goals requires more than just the As a global transportation and energy company, MAN must provide right framework at political level. The world of industry also has to make answers and solutions to global climate change. Specifically, the following Portrait an active contribution. MAN makes its contribution to achieving these climate-related risks and opportunities apply to one or more of MAN’s
Our approach goals both through its core business and as part of its social commitment. subgroups: The SDGs as a whole are an important basis for our core business and our regulatory risks, particularly with regard to a CO₂ tax or emissions Products social and ecological commitment. The following chapters showcase vari- trading in the logistics sector, ous measures that are aimed at helping to achieve the individual SDGs. extreme weather events, such as severe storms, flooding, hail, or Production heavy snowfall, which could interrupt production or affect suppliers, Supply chain CR management reputation risk – because the use of our products generates green- At MAN, corporate responsibility is a top managerial function. The Chief house gas emissions and MAN can only achieve long-term market People Human Resources Officer and Arbeitsdirektor (Executive Board member success if the Company invests in energy-efficient and low-carbon Society and integrity responsible for employee relations) is ultimately responsible for CR at technologies. MAN. Reporting to him is MAN SE’s Corporate Responsibility function, Annex which is responsible for implementing MAN’s CR strategy. The Corporate At the same time, the consistent continuation of the European climate Responsibility function serves as the central point of contact for all CR protection policy and the gradual implementation of similar policies in issues within the Company. It also coordinates the CR Council, whose the BRIC countries will also yield new growth opportunities for MAN. members include managers from the Production, Products, and Integra- These include: tion areas (e.g., from Purchasing, the Group Works Council, and Human increasing market share through early compliance with regulatory Resources), Research and Development, Strategy, Public Affairs, and from requirements, all subgroups. The Council is responsible for advising on how to incorpo- strengthening ties to customers and suppliers through joint efforts to rate CR into operational processes and on the further development of the cut CO₂ emissions, CR strategy, as well as for conducting systematic stakeholder dialog. The increasing competitiveness through greater immunity to energy price CR Council met twice in the fiscal year under review. MAN also steers its CR fluctuations, resulting from increased reliance on internal energy activities through integrated management systems, as described in the generation and renewables. Production (, page 18) and People (, page 31) chapters of this report. Information on the general risk management system of the MAN Group can be found in MAN’s 2017 Annual Report, page 56. 07 MAN GRI Report 2017 Our approach
MAN’s Climate Strategy The aim is to incorporate climate and environmental protection, as well as Overview MAN aims to make a significant contribution to reducing CO₂ while energy efficiency, into all relevant processes and decisions within the Foreword exploiting business opportunities. MAN’s Climate Strategy, which was Company. This will allow us to ensure the future viability of the Company adopted in 2011, has been pursued systematically ever since, meaning that and our products while making a contribution to the sustainable develop- Portrait we are on the right track. We actively involve our employees in this process ment of society.
Our approach and identify approaches covering all aspects of the value chain. For exam- ple, we identify potential for reduction both within our own production Materiality analysis Products environment and together with our suppliers, and aim to offer our cus- tomers an efficient product and service portfolio at the same time. In 2017, We have used a multistep materiality analysis to iden- Production [G4-18, G4-24, G4-27] we reduced our CO₂ emissions by 23.7% compared with the base year of tify global challenges that are relevant to MAN. This included not only Supply chain 2008. This brings us much closer to achieving our objective of reducing what our stakeholders – including our employees, business partners, and CO₂ emissions at our sites by 25%, in absolute terms, as against the base customers – expect of the Company, but also MAN’s own objectives. This People year by 2020 (, page 21). led to the definition of six material challenges as the basis for our report- Society and integrity ing to the G4 standard of the Global Reporting Initiative (GRI). These global Against the backdrop of the United Nations Paris Agreement on climate challenges were then assigned to the corresponding GRI Aspects (, page Annex change, MAN Truck & Bus has adopted a new CO₂ reduction plan based on 08) for which MAN reports at least one performance indicator ( further five pillars: details on the materiality analysis can be found in the 2016 MAN CR Report Energy efficiency: increasing energy efficiency through measures on pages 8f.). relating to building insulation, production processes, and the pur- chase of energy-efficient products and services An update of the materiality analysis, which started in 2017, will be com- Renewable energy: using renewable energy where it makes sense to pleted in 2018. do so is an integral component of our decision-making processes Internal energy generation: immunity to fluctuations in energy prices and commodity imports by ensuring efficient and environmen- tally friendly energy supplies using combined heat and power plants Energy management system: continuous monitoring of the degree of implementation and success of the measures taken Energy storage: use of energy and heat storage facilities such as battery systems or power-to-heat pumps 08 MAN GRI Report 2017 Our approach
[G4-19, G4-20, G4-21] Material global challenges faced by MAN Overview
Foreword Global Material Aspect Fields of Portrait challenge Description Relevance for MAN GRI Aspect boundary* action
Our approach Climate change Among other problems, the rise in global temperatures caused by In this context, the transportation and logistics sector is Energy greenhouse gas emissions leads to extreme weather events, rising called on to reduce its emissions of CO2 and other green- Emissions Production sea levels, and natural disasters. In many regions, this in turn has house gases and minimize climate impact. We give top Transportation Products a further negative impact on ecosystems as well as social and priority to the development and use of alternative drives Products economic systems. and fuels. Production Scarcity of Resources include all raw materials and natural resources such as Resource scarcity affects MAN as a manufacturing Materials Supply chain resources water, energy, and land which are necessary for life and economic company and makes its supply of production materials Production activity. Overuse of these resources leads to water shortages, less secure and economical. People desertification and erosion, and rising prices for raw and building Products materials. Society and integrity Urbanization The percentage of the total world population living in urban areas The quality of life and ecological sustainability of large Energy is growing steadily. According to United Nations estimates, 60% cities depends on efficient transportation and energy Transportation Production Annex of all people will be living in cities by 2030. solutions, as well as intelligent mobility. MAN can make Products a material contribution in these areas.
Health Severe physical stress, lack of exercise, and psychological issues As an international manufacturer of heavy industrial Occupational health such as mental stress are key challenges in the field of health, machinery and commercial vehicles, the issue of occupa- and safety putting a strain on social health insurance systems. Accident tional health and safety has traditionally played an impor- Customer health and People prevention measures also play an important role in improving tant role at MAN. Another key challenge faced by MAN is safety road safety. the occupational health of its employees in countries out- Products side Germany. MAN has also engaged in accident research for many years to improve the safety of its vehicles.
Pollution The increasing amounts of waste produced around the world have MAN makes every possible effort to limit the environmental Effluents and waste far-reaching effects on plant, animal, and human life. Millions of impact of its production activities, focusing on the continu- Products and Integration tons of plastic waste end up in the oceans and contaminate the ous reduction of volumes of waste and assessing the recy- services Production groundwater. In addition, waste incineration plants cause air clability of materials in product life cycle assessments. Compliance pollution. (environmental Products regulations)
Diversity & equal Diversity means treating all people equally, regardless of character- As a globally positioned, inclusive company, MAN believes Training opportunities istics such as gender, ethnic origin, age, disability, and sexual it is essential to treat every employee equally and create an Diversity & equal People orientation. environment in which individuals can develop to their full opportunities potential.
* within the company , externally , or both 09 MAN GRI Report 2017 RESPONSIBILITY FOR PRODUCTS
By developing safe and efficient transportation and energy solutions, we aim Overview to reconcile the greatest possible economic benefits for our customers with Foreword aspects relating to environmental and climate protection. We take a holistic Portrait view of our product responsibility, looking at the entire product life cycle –
Our approach from raw materials extraction through disposal.
Products
Product responsibility
Efficient and environmentally friendly products and services
Energy supply and PRODUCT RESPONSIBILITY recycling
Intelligent mobility For MAN, product responsibility means looking at the environmental mark products for which calculations have been performed include not impact of our products over their entire life cycle and using forward- only a dual-fuel engine, but also a performance-enhancing system (turbo-
Product safety looking product development to reduce this impact. In addition to the charger) and a selective catalytic reduction (SCR) system. analysis of the Product Carbon Footprint (PCF) of certain product groups, The life cycle phases at MAN Truck & Bus range from production Production a Life Cycle Assessment (LCA) is also performed. and use through the product’s end-of-life phase (recycling and waste To identify the potential for reducing the life cycle CO₂ emissions process). Supply chain of our products, we calculate PCFs for selected product groups of MAN We also perform LCAs which take into account additional environ- People Diesel & Turbo in line with the requirements of the Greenhouse Gas Pro- mental impact categories. In 2016, MAN Diesel & Turbo went on to calcu- tocol entitled “Product Accounting and Reporting Standard.” The bench- late a PCF for a transmission compressor. Society and integrity
Annex 10 MAN GRI Report 2017 EFFICIENT AND ENVIRONMENTALLY FRIENDLY PRODUCTS AND SERVICES
We are committed to continuously improving the efficiency of our With its aerodynamically optimized design, the NEOPLAN Skyliner Overview products. After all, in most cases our customers base their decision to buy double-decker coach returns fuel consumption of less than 30 l/100 km – Foreword a product on total cost of ownership. In the freight transportation sector, a saving of approximately 5% in highway driving at a constant speed of fuel costs account for approximately one-third of this sum, which is why 100 km/h. This has benefits for the environment as well, with CO₂ emis- Portrait the quest for greater efficiency and low emissions is a key technology sions of just 12 g/passenger kilometer when operating at full passenger
Our approach driver. In pursuit of technology leadership, MAN focuses its research and capacity. development activities not only on developing new products and enhanc- The new MAN Lion’s City sets the standard for an economical and Products ing existing ones but also on environmentally friendly city bus. The optional MAN EfficientHybrid in
Product responsibility reducing fuel consumption and emissions, the new MAN Lion’s City helps to reduce fuel consumption. The system alternative drive concepts, and recuperates and stores braking energy to operate the vehicle electrical sys- Efficient and alternative fuels. tem, among other things. The stop-start function results in complete environmentally friendly We have also made a commitment to offering our customers an engine shutdown at standstill – ensuring completely emission-free opera- products and services efficient product portfolio as part of MAN’s Climate Strategy tion at bus stops, for example. Energy supply and (,Climate Strategy, page 07). In 2017, MAN also took part in the EU’s EcoChamps research recycling project, which investigated the use of mass-produced components (for Intelligent mobility Efficient diesel engines passenger cars) to promote hybrid technology in commercial vehicles.
Product safety Ever since Rudolf Diesel developed the diesel engine in the late 19th cen- tury together with engineers at Maschinenfabrik Augsburg (a forerunner Production of MAN), we have worked continuously to improve the efficiency and per- Reducing emissions formance of this internal combustion engine. And our hard work has paid Supply chain off: today, economical and efficient transportation and energy solutions For the purposes of a study conducted by the ACEA (European Automo-
People from MAN are in operation all over the world. bile Manufacturers' Association), MAN calculated the reduction of CO2 Examples include the highly efficient TGX EfficientLine, now into emissions in commercial vehicles between 1994 and 2016. This involved Society and integrity its third generation, which incorporates a range of fuel-saving technolo- comparing semitrailer tractors from different eras as they drove three Annex gies aimed at further reducing total cost of ownership and CO₂ emissions. times on a 360-kilometer route accompanied by the technical inspection A report by the TÜV technical inspection authority confirms that the third authority TÜV Süd. The result shows a 31.5% reduction in fuel consump-
generation of the truck consumes 6.35% less fuel than its predecessor. tion and, as a result, in CO2 emissions in the 1994–2016 period. 11 MAN GRI Report 2017 Efficient and environmentally friendly products and services
Low-pollutant natural gas engines In particular, retrofitting measures to enable LNG operation reduce ship- Overview ping emissions considerably. By providing its customers with the technol- Foreword As a clean fuel, natural gas plays a key role in our product portfolio. As well ogy required for the retrofitting of their existing fleets, MAN Diesel & as providing low-emission propulsion for buses, trucks, and ships, natural Turbo is aiming to spark a maritime energy revolution. In 2017, MAN Portrait gas is also ideally suited for use in the power generation industry. Diesel & Turbo successfully completed the world’s first conversion of
Our approach a container ship to dual-fuel operation. To provide an incentive for the City buses retrofitting of further container ships, the company promised to offer Products When operated on special biogas, the MAN Lion’s City GL CNG natural gas- discounts totaling €2 million for ten additional LNG retrofits at the
Product responsibility powered city bus is virtually carbon-neutral. Gas-powered buses accounted international Our Ocean 2017 conference organized by the European for around one in five of all MAN city buses sold during the year under Commission. Efficient and review. MAN Truck & Bus is the leading European supplier of gas buses, environmentally friendly with a current average market share of around 30%. products and services
Energy supply and Shipping The maritime energy revolution recycling With its dual-fuel engines, which are capable of operating on both gaseous Intelligent mobility and liquid fuels, MAN Diesel & Turbo offers a low-carbon propulsion solu- Inspired by the success of the energy revolution in the electricity market, tion for ships that combines energy efficiency with flexibility. As well as MAN Diesel & Turbo has been committed to the idea of a “maritime energy
Product safety liquefied natural gas (LNG), MAN Diesel & Turbo also offers engines capa- revolution” since 2016. The concept focuses on more stringent global ble of running on methanol, ethanol, or liquefied petroleum gas (LPG). emissions regulations in shipping: switching to LNG (liquefied natural gas) Production as marine fuel allows harmful nitrogen oxide and sulfur emissions to be
almost completely eliminated and CO2 emissions to be significantly Supply chain reduced. In a second step, the production of synthetic LNG from renew-
People able energies also allows CO2 emissions to be completely eliminated. MAN Diesel & Turbo advocates a united approach involving national Society and integrity governments, the International Maritime Organization (IMO) as the global Annex regulator, and the global shipping industry. 12 MAN GRI Report 2017 Efficient and environmentally friendly products and services
Overview Electricity – the climate-friendly drive technology Foreword With zero pollutant emissions from fuel combustion and low noise, plus a Electric mobility: the ideal solution for inner-city traffic better carbon footprint with the right electricity mix, electricity is set to be Portrait the drive technology of the future – at least around town and on shorter Battery technology is a decisive factor in electric mobility, especially in Our approach journeys. We are preparing for the volume production of purely electric commercial vehicles. Although the development of this technology is mak- city buses and trucks. This is MAN’s way of forging ahead with efforts to ing rapid progress, size, weight, and capacity still determine the extent to Products promote electric mobility in commercial vehicles. Our economically which it can be used. This is why electric drive technology makes particu- Product responsibility robust electric mobility solutions are being developed in close collabora- lar sense in modern inner-city traffic, especially in public transportation. tion with cities and logistics partners. First, this is an area in which low-noise and emission-free transportation Efficient and is becoming increasingly important. Second, the inner-city environment environmentally friendly products and services Electric trucks also offers the best conditions for corresponding charging infrastructure. At the 2016 Commercial Vehicles Trade Fair (IAA), MAN unveiled an elec- Driving conditions in the city, e.g., frequently alternating acceleration and
Energy supply and tric mobility concept for distribution transportation, drawing on experi- braking phases, also allow energy recovery systems to be used in a par- recycling ence gained with the Metropolis waste disposal vehicle that had been pre- ticularly efficient manner. Intelligent mobility sented two years earlier. From 2018, the first electric trucks will be put to the test in practice in cooperation with the Austrian business consortium One key factor influencing the range is the heating/air conditioning of the
Product safety known as the Council for Sustainable Logistics (CNL). The logistics port vehicle, depending on the region in which it is to be used. Public transpor- folio of the CNL companies covers a wide range of applications in urban tation companies and freight forwarders should be aware that switching to Production and urban-fringe distribution work and food supply, and offers MAN the electric buses or trucks requires changes to be made to the depot’s infra- ideal framework for testing electric trucks. structure – and the establishment of appropriate infrastructure at suitable Supply chain points along the route or at the destination in cases involving interregional People transportation.
Society and integrity
Annex 13 MAN GRI Report 2017 Efficient and environmentally friendly products & services
Electric buses Overview MAN’s solo and articulated buses will also be available with battery-elec- Foreword tric drive systems: to begin with, a demonstration fleet will be tested under Charging technology standardization everyday conditions at several public transportation companies. Our close Portrait collaboration with public transportation companies as part of our coop- MAN sees charging interface standardization as a key challenge which still Our approach eration projects has revealed a desired range of up to 200 km a day under needs to be resolved. Standardization is an essential requirement for realistic operating conditions. We are developing our concepts accord- ensuring flexibility, interoperability, and a stable planning framework for Products ingly. city bus operators, and for the successful introduction of zero-emission Product responsibility We are working with several cities – including Munich and Ham- drive technology in urban transportation. With this in mind, MAN is taking burg – in a quest to press ahead with the development of line-service part in the public-funded eBusCS project (Electric Bus Charging System), Efficient and buses powered by alternative drives. One of the aims of this collaboration whose sponsors include the German Federal Ministry for Economic Affairs environmentally friendly is to develop a financially optimized, zero-emission concept for electric products and services and Energy. For the manufacturers, the main standardization issues to be mobility. tackled include vehicle-to-grid communication as described in ISO 15118,
Energy supply and the positioning of automated charging systems, and the positioning of the recycling Consulting for alternative drives charging inlet on the vehicle. Intelligent mobility As we move from “low-emission” to “no-emission” solutions, public trans- portation companies and fleet operators are faced with various challenges MAN Truck & Bus has been a member of the Charging Interface Initiative
Product safety extending beyond the actual vehicle. In order to provide them with the since 2017. The aim of the association is to establish the Combined best possible support in this regard, MAN Truck & Bus has set up MAN Charging System (CCS) as the standard for charging all battery-electric Production Transport Solutions, a specialized consultancy team for individual and vehicles. highly economical transportation solutions. In addition to technical Supply chain questions about the vehicle, this team also advises customers on ques- People tions relating to energy requirements, the appropriate infrastructure, maintenance concepts, and optimum fleet design. Society and integrity
Annex 14 MAN GRI Report 2017 ENERGY SUPPLY AND RECYCLING
Overview Aftertreatment systems Gas storage
Foreword MAN Diesel & Turbo offers its customers aftertreatment systems capable In addition to dual-fuel engines, MAN Diesel & Turbo also supplies of ensuring compliance with both present and future emissions require- systems for the storage and processing of natural gas in maritime applica- Portrait ments. Not only are these technologies fitted on new engines, they are tions under the MAN Cryo brand. This means the company is able to
Our approach also available for retrofitting on engines already in operation. MAN was provide its customers with complete engine/gas supply solutions for the first manufacturer to offer IMO Tier III compliance for its four-stroke gas-powered ships. Products engines by combining them with an SCR (selective catalytic reduction) system. We have now successfully applied this technology to two-stroke Product responsibility Remanufacturing and service engines as well. Efficient and Extending the service life of vehicle components cuts costs and, compared environmentally friendly with manufacturing new parts, also reduces CO₂ emissions and resource products and services Gas-fired power plants consumption. With this in mind, MAN Truck & Bus professionally reman- Energy supply and MAN Diesel & Turbo gas turbines and gas-only engines offer an ideal solu- ufactures used parts such as coolant pumps or crankshafts under the recycling tion for decentralized energy generation. Following the launch of the MAN Genuine Parts ecoline brand. These parts then go back into everyday Intelligent mobility 35/44G gas engine (electrical output: 10,335 kW) for power generation, use. More than 3,000 parts are now offered under this program. MAN Diesel & Turbo has now extended its gas engine portfolio with the With more than 115 locations worldwide, MAN PrimeServ, the ser-
Product safety addition of the 51/60G, which has an electrical output of 18,465 kW. This vice brand of MAN Diesel & Turbo, maintains a strong local market pres- unit also boasts high efficiency. ence. The PrimeServ portfolio spans everything from certified original Production MAN Truck & Bus offers low-pollutant gas engines for CHP plants parts and high-quality servicing through customer training and retrofits. in an output range from 37 kW through 580 kW in the case of natural gas, Retrofits, for example for diesel engines or marine propulsion systems, Supply chain and from 68 kW through 580 kW for operation on alternative gases such help boost efficiency and cut emissions. People as biogas, landfill gas, or sewage gas. With their optimal combustion/CHP processes, they achieve overall efficiency of over 90%. Society and integrity
Annex 15 MAN GRI Report 2017 INTELLIGENT MOBILITY
Digital transformation is opening up whole new business opportunities Platooning Overview and fields of activity for MAN. Taking commercial vehicle connectivity as Foreword our starting point, we are already offering smart services that reduce fuel MAN defines platooning as a vehicle-based system, still at the develop- consumption, increase fleet utilization levels, and reduce the frequency of ment stage, in which two or more semitrailer combinations follow each Portrait workshop visits. other in close proximity with the aid of driver assistance systems, steering
Our approach technology, and vehicle-to-vehicle communication. The lead vehicle dic- RIO tates the speed and the direction and the resulting “slipstream effect” Products achieves an overall fuel saving of up to 10%, depending on vehicle model
Product responsibility As a digital brand of Volkswagen Truck & Bus, RIO offers digital solutions and convoy length, for the platoon as a whole, which also leads to reduced for the entire transportation and logistics ecosystem on its open and CO₂, nitrogen, and particulate emissions. Efficient and cloud-based platform. The RIO Box, which forms the basis for connecting A research project initiated by DB Schenker, MAN Truck & Bus, and environmentally friendly the vehicles with the platform, has already been fitted as standard in all the Fresenius University of Applied Sciences puts networked trucks into products and services brand-new MAN truck series in Europe since August 2017. The services practical operation in everyday logistics for the first time. As part of the Energy supply and offered on the RIO platform allow RIO and MAN to make a significant con- cooperation project agreed in May 2017, DB Schenker will be testing truck recycling tribution to protecting the environment and the climate: for example, platoons as part of its regular operations and in real road traffic conditions Intelligent mobility MAN customers can save fuel by improving tour and route planning and on the A9 highway digital test field between Munich and Nuremberg for avoiding empty journeys. The CO₂ footprint is reduced across the entire several months starting in June 2018.
Product safety logistics chain. All services on the platform – RIO services, MAN services, and partner solutions – are aimed at making users’ day-to-day business Extra-long trucks Production easier. Increased transparency and reduced complexity offer quantifiable advantages such as freight optimization or shorter routes, enhancing eco- On certain routes, extra-long trucks (up to 25.25 m) have the potential Supply chain nomic sustainability as a result. to absorb the forecast future growth in road freight traffic while helping People to curb greenhouse gas emissions. Compared to conventional trucks, Connected CoDriver fuel consumption can be reduced by up to 25% and CO₂, nitrogen, and par- Society and integrity ticulate emissions avoided. Since the end of 2017, the longer trucks have
Annex MAN is also using digitalization to promote a low-carbon driving style. been approved for use on a defined positive network in Germany for an With Connected CoDriver, MAN Truck & Bus offers its customers a system unlimited period. Flexible and aerodynamic long truck combinations are which, for the duration of the training period, pairs drivers with an instruc- also being developed as part of the EU Horizon 2020 research project tor who acts as a virtual co-driver and provides tips for a more efficient AEROFLEX and under MAN’s leadership. Offering efficiency gains of driving style. between 18% and 33%, these will make the logistics chain significantly more efficient from 2025 onward. 16 MAN GRI Report 2017 PRODUCT SAFETY
All MAN products are checked and monitored for safety aspects on an TÜV Report Overview ongoing basis. To meet the high safety standards, MAN Diesel & Turbo has Foreword set up a Product Safety Committee. At the corporate organizational level, product safety is also underpinned by the “Product safety monitoring and of one-year-old MAN trucks and Portrait the handling of substandard products” subgroup policy, version 03 of 86.1%of five-year-old MAN trucks proved free of faults in 201765.3% Our approach which is currently ratified. The Executive Board has also set out interna- tionally binding product safety guidelines in addition to other policies. As Products in previous years, the product safety audits carried out centrally in 2017 documented the considerable awareness of product safety that exists Product responsibility Driver assistance systems throughout the MAN Diesel & Turbo organization. Efficient and MAN Truck & Bus lives up to its responsibility for the products Based on many years of accident research, MAN Truck & Bus is working to environmentally friendly placed on the market by ensuring intensive and systematic product moni- continuously improve the safety of its vehicles. MAN’s driver assistance products and services toring, efficient reporting channels, and a committee structure estab- systems (Adaptive Cruise Control (ACC), Lane Guard System (LGS)) increase Energy supply and lished for this purpose. This is set out in subgroup policy 19 101, which is road safety and reduce fuel consumption. This is also confirmed by the recycling based on Volkswagen Group Policy 4 “Product Safety and Conformity.” The European research project euroFOT, with companies and institutions Intelligent mobility system described in this Policy is used to monitor and ensure product from ten different countries taking part: safety and conformity for MAN Truck & Bus products. Product safety Trucks using ACC achieved average fuel savings of almost 2% over the TÜV Report for Commercial Vehicles period of the trial, despite also recording a higher average speed. At the Production same time, critical events such as hard braking or sudden evasive For the fifth time running, MAN Truck & Bus performed well in the 2017 maneuvers were reduced by more than one-third. Supply chain TÜV Report for Commercial Vehicles, where it was once again the truck People manufacturer with the highest share of vehicles to pass the main TÜV LGS, which warns drivers if they leave a lane, resulted in better lane- inspections free of faults. keeping and smoother steering. Society and integrity
Annex In the concluding driver survey, 94% of drivers said that ACC significantly improved safety – and rated it as one of the most important driver assis- tance systems for trucks. 17 MAN GRI Report 2017 Product safety
Overview Training Customer satisfaction and information
Foreword ProfiDrive is the professional training system from MAN Truck & Bus. The MAN conducts surveys on product and service satisfaction in all business ProfiDrive portfolio comprises both theoretical further training, as units on a regular basis. By way of example, MAN Truck & Bus continu- Portrait prescribed in Germany by the statutory requirements on professional ously tracks customer satisfaction using the CustomerFirst Study (CFS). As
Our approach competence certification for drivers, and professional, practice-oriented part of the 2017 CFS, we conducted telephone surveys of just under 45,000 training to improve safety and economy in everyday driving. customers – more than in the previous year. Almost 95% gave MAN Truck Products MAN Diesel & Turbo’s 13 PrimeServ Academies offer technical & Bus a “good” rating or better, while more than 70% responded with
Product responsibility training and customized product training for both customers and employ- “very good” or better. This indicates that customer satisfaction has shown ees, which can be delivered directly on site, even on board the customer’s a further rise compared to 2015 and 2016 levels. Efficient and ship or at the customer’s power station. In 2017, we were able to train We provide our customers with information and instructions for environmentally friendly approximately 8,300 participants in “hands-on courses.” We also offer all our products. We inform them specifically about factors such as rolling products and services web-based training that combines practical elements with e-learning. resistance and aerodynamic drag, which influence vehicle emissions and Energy supply and Over 13,700 participants benefited from our digital web-based training fuel consumption. We present information on the CO₂ emissions gener- recycling portfolio in 2017. ated by our vehicles with reference to the total lifetime mileage. The calcu- Intelligent mobility A high level of safety awareness along with high standards of com- lations can be simulated using the TCO (Total Cost of Ownership) calcu petence on the part of our employees when it comes to areas as critical as lator on the MAN Truck & Bus AG website. Product safety explosion safety or machine safety are essential at MAN Diesel & Turbo. In addition to training courses on products and services, we offer This is the focus of the Rollout of Standardized Safety Training (ROST) MAN Truck & Bus sales staff regular training on climate-related and envi- Production project, which was established in previous years. Together with the regular ronmental topics. This ensures that we can provide our customers with refresher courses, MAN Diesel & Turbo trained more than 3,500 partici- expert advice. Around 1,000 sales employees of MAN Truck & Bus (world- Supply chain pants on various product safety topics in 2017. wide) were trained on efficiency, the environment, and pollution as part of People the 2017 Truck Camp, which took place in Munich in the year under review. Every two years, MAN Diesel & Turbo conducts an online survey Society and integrity which also serves to monitor customer satisfaction. 5,800 customers were
Annex surveyed in 2017, with 48% rating MAN Diesel & Turbo as excellent or very good. 18 MAN GRI Report 2017 RESPONSIBILITY IN PRODUCTION
Climate change, pollution, and resource scarcity are relevant global challenges Overview facing the production sector. State-of-the-art technology and our integrated Foreword management systems are helping us to reduce the environmental impact of our Portrait production activities. We use various levers to lower CO2 emissions and help Our approach mitigate climate change.
Products
Production
Climate and energy
Efficient transportation and logistics Scope of the indicators
Environmental and This chapter covers 30 production sites in the MAN Truck & Bus, MAN The reporting of CO emissions in the Progress Report on MAN’s Climate resource conservation 2 Latin America, MAN Diesel & Turbo, and Renk divisions. As in the previous Strategy refers solely to the 28 production sites that fall within the scope year, it also includes data from the St. Petersburg site, which is now oper- of the Climate Strategy, and excludes the Winterthur and St. Petersburg Supply chain ated as a joint venture with Scania. [G4-22] In the interests of transparency, sites. People in 2017 the Group introduced a uniform reporting framework aligned with that of the Volkswagen Group. Under the new, uniform Group definition, Our reporting of direct and indirect CO2 emissions is aligned with the emis- Society and integrity non-production sites (Dachau, Salzgitter (warehouse), Holeby, and Plauen) sion factors of the Association of the German Automotive Industry (VDA),
Annex are not included in the reporting framework. MAN Diesel & Turbo’s pro- except for emissions from district heating. Wherever possible, we use site- duction site in Bangalore (India) has been included in the reporting for the specific emission factors here; otherwise the VDA factors are applied. first time since 2017. 19 MAN GRI Report 2017 Responsibility in production
Overview Foreword Development of production in 2017
Portrait Commercial Vehicles Power Engineering Our approach In 2017, production at MAN Truck & Bus was characterized by rising pro- The situation improved slightly in the Power Engineering business area, duction volumes compared with 2016, with an increase of 3.6% in the but remained strained overall. The marine market and the market for turbo Products number of vehicles produced to 86,570. This in turn drove up demand for machinery recorded slight growth at a low level. In the large commercial Production energy and raw materials, along with the volume of production-related vessels segment, the market remained under pressure. The strong waste. Additionally, in the reporting period, construction work at produc- demand for cruise ships and in the special market for government vessels
Climate and energy tion sites influenced energy and raw materials demand, as well as volumes was positive. The general trend toward gas-powered ships continued. The
Efficient transportation of construction waste. market for energy generation showed slightly higher demand. The shift and logistics toward dual-fuel and gas-fired power plants accelerated further. Following the economic downturn in previous years, production at MAN Environmental and Latin America increased by around 36.5% to 26,594 vehicles produced in Renk’s sales revenue was down in a year-on-year comparison. Compared resource conservation 2017. This in turn led to an increase in volume-dependent environmental with the previous year, this also resulted in a proportionate drop in energy indicators. consumption. Supply chain
People
Society and integrity
Annex 20 MAN GRI Report 2017 CLIMATE AND ENERGY
Direct primary energy consumption1 Overview Energy management in MWh 2015 2016 2017 CV PE Foreword The efficient use of energy, energy-saving targets, and the use of renew- ables are all part of our environmental management system. Our Pinetown Heating oil 8,706 2,583 3,108 1,849 1,259 Portrait plant is the first production site to be awarded ISO 50001 certification. Our Natural gas 380,619 378,143 409,175 259,843 149,332 Diesel 263,574 259,874 259,312 167,466 91,846 Our approach distribution company in Germany (SRG) is also certified to ISO 50001. Other2 8,072 6,606 7,102 3,337 3,765 Products 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles Energy consumption 2 Gasoline used as fuel on site and fuel gases used in manufacturing processes PE: Power Engineering Production In 2017, energy consumption at MAN production sites showed only a min- Climate and energy imal year-on-year change despite a considerable increase in production Energy consumption per vehicle produced and amounted to 1.38 million megawatt-hours (MWh) (2016: 1.37 MWh). In (figures for the Commercial Vehicles business area)1 Efficient transportation and logistics the Commercial Vehicles business area, energy consumption per vehicle produced fell from 8.8 MWh in 2016 to 8.4 MWh in 2017. in MWh per unit 2015 2016 2017
Environmental and 9.4 8.8 8.4 resource conservation 1 As of 2016, non-production sites are no longer included in the reporting framework. Energy consumption1
Supply chain in MWh 2015 2016 2017 CV PE Direct energy consumption 660,972 647,206 678,696 432,495 246,201 People (combustion fuels and gases) CO2 emissions Society and integrity Indirect energy consumption 736,304 719,905 698,604 520,740 177,864 CO₂ emissions per vehicle produced in the Commercial Vehicles business Electrical energy 470,722 458,185 446,460 313,500 132,960 area fell by 13.8% in the reporting period. Absolute CO₂ emissions at MAN Annex Thermal energy 265,582 261,720 252,144 207,239 44,905 production sites likewise showed a significant drop overall (–4.2%) in the Total 1,397,276 1,367,111 1,377,300 953,235 424,065 reporting period. 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles PE: Power Engineering 21 MAN GRI Report 2017 Climate and energy
CO2 emissions per vehicle produced CO2 reductions in 2017 Overview (figures for the Commercial Vehicles business area)1
Foreword in tons per unit 2015 2016 2017 Portrait 3.0 2.9 2.5 23.7% Reduction in CO2 emissions compared with 1 As of 2016, non-production sites are no longer included in the reporting framework. Our approach the base year of 2008.
Products 1, 2 Absolute direct and indirect CO2 emissions Production in tons of CO2 2015 2016 2017 CV PE CO₂ reductions are evaluated on a cost-benefit basis to focus investment Climate and energy Indirect emissions 292,597 287,346 265,032 192,130 72,902 on areas where CO₂ avoidance costs are low and the contribution to Direct emissions 151,599 148,119 154,620 98,634 55,986 reaching our target is high. Efficient transportation and logistics Total 444,196 435,465 419,652 290,764 128,888 At the Munich site, the CHP plant that was completed in 2016 is 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles 2 contributing to the reduction of 9,600 tons of CO₂ a year. This measure Environmental and Direct emissions result from the combustion of primary energy sources, e.g., natural gas, PE: Power Engineering heating oil, diesel; indirect emissions result from purchased electricity and district heating. alone accounts for around 40% of the Munich site’s target for reducing resource conservation Emissions are calculated on the basis of the emission factors of the VDA as a general rule. If available, the site-specific emission factors have been used for emissions from district heating. CO₂ emissions and allows up to 20% of the power required by the site to be generated on site. As a result, the twin 2.5 megawatt natural gas units mark Supply chain a significant milestone in MAN’s Climate Strategy and the Green Produc- tion initiative. People CO2 reduction as part of MAN’s Climate Strategy By 2020, we are aiming to reduce our CO₂ emissions from production by Society and integrity 25% relative to the 2008 baseline. So far, we have achieved a 23.7% reduc- CO2 reductions from implementing MAN’s Climate Strategy tion in CO₂ emissions – equivalent to around 129,740 tons (, Scope of the Annex Climate Strategy, page 18). Year-on-year, our CO₂ reductions have increased Year taken as significantly. In working toward our climate goal, the sites have drawn up CO2 emissions in tons a basis: 2008 2017 Reduction in % plans to save energy and cut CO₂ emissions. In addition to the use of Commercial Vehicles 401,800 287,885 –28.4 renewable energies and new energy supply concepts, these include the MAN Truck & Bus 374,600 279,910 –25.3 optimization of lighting and heating control, building renovation, mea- MAN Latin America 27,200 7,974 –70.7 sures to reduce base load, and moves to raise employee awareness. Power Engineering 142,800 127,668 –10.6 MAN Diesel & Turbo 122,800 106,486 –13.3 Renk 20,000 21,182 5.9 Total 544,600 415,553 –23.7 22 MAN GRI Report 2017 EFFICIENT TRANSPORTATION AND LOGISTICS
Further measures in 2017 Overview Emissions from transportation and logistics
Foreword Reducing the environmental impact of our transportation and logistics Reduction in outbound emissions thanks to changes in domestic activities is a key element of the integrated environmental management vehicle distribution logistics in Germany. Higher loading factors allow Portrait system at MAN Truck & Bus. A number of targets have been set in this more vehicles to be transported per journey, avoiding separate jour-
Our approach respect, including the optimization of transportation structures and neys and saving approximately 100 tons in CO₂ emissions. procedures. A dedicated tool for computing the CO₂ emissions from trans- Products portation activities has been put in place. Measures such as the use of extra-long trucks are being implemented To reduce CO₂ emissions within our own logistics chain, we supply to make inbound logistics more efficient. The use of alternative drive Production our regional freight forwarders via freight hubs, which consolidate ship- systems, such as electric trucks, is also being promoted. Climate and energy ments, optimize vehicle capacity utilization, and prevent vehicles from having to make empty runs. As a commercial vehicle manufacturer, we Implementation of an in-house software program known as “ConMa” Efficient transportation and logistics expect our service providers to use state-of-the-art trucks that comply to optimize empties management, increase transportation capacity with the latest emissions standards. utilization, and avoid unnecessary runs. The use of ConMa allowed CO₂
Environmental and In the year under review, in the logistics sector MAN Truck & Bus emissions to be reduced by approximately 300 tons compared with the resource conservation caused the release of 82,189 tons of CO₂ (2016: 77,070 tons) for incoming previous year. The innovative software has received the 2018 VDA supplies and 96,297 tons of CO₂ (2016: 84,768 tons) in delivering its Logistics Award. Supply chain products. This equates to an increase of around 10.3% compared to 2016 due to higher production volumes and an extended production range People Logistics-related CO2 emissions per vehicle produced, in tons (TGE). The increase was also due to external factors such as an increase Society and integrity in the average number of shipping kilometers covered by our finished 2.1 vehicles en route to customers. Despite these structural changes, CO₂ Annex emissions per vehicle were kept more or less stable thanks to numerous 2.0 measures taken to optimize transportation. One example is vehicle distri- bution, where we witnessed a 25% increase in the number of kilometers 1.9 covered and where the increase in CO₂ emissions was disproportionately low in comparison. 1.8 2012 2013 2014 2015 2016 2017 23 MAN GRI Report 2017 Efficient transportation and logistics
Employee mobility In Germany, depending on the available infrastructure, we provide subsi- Overview dized tickets for our employees' journeys to and from work. At selected Foreword MAN has Group-wide requirements for air travel, rental cars, and train sites outside Germany, we provide our employees with bus transfers, for journeys: employees should only travel when it is unavoidable. Alterna- example. Our employees network using the TwoGo software solution to Portrait tives such as video or conference calls must be checked in advance. The form car pools. MAN also helps to reduce commuter traffic by offering the
Our approach most environmentally friendly means of transport should always be used option of working from home. as long as this is economically feasible. Products In the year under review, business travel by our employees caused around 14,800 tons of CO₂ emissions (2016: 15,000 tons). This figure Production relates to business travel booked through the central travel service in Climate and energy Germany, around 88% of which was for flights.
Efficient transportation and logistics
Environmental and resource conservation
Supply chain
People
Society and integrity
Annex 24 MAN GRI Report 2017 ENVIRONMENTAL AND RESOURCE CONSERVATION
Overview Environmental management Systems and instruments
Foreword All MAN production sites are certified to a quality standard (the majority The MAN Group operates systems for managing environmental protec- to ISO 9001). We have set ourselves the target of certifying our sites to the tion, occupational safety, and quality. At the production sites, these sys- Portrait ISO 14001 environmental management standard as well, something that tems are regularly verified by external experts or auditors, as well as by
Our approach has already been achieved for 25 sites. The Aurangabad site will have been internal audits. We also operate a range of activities relating to energy certified by the end of 2018, with introduction measures pending for management. Other key systems and instruments for implementing Products Olifantsfontein, Quéretaro, and Rheine. MAN’s Climate Strategy and environmental protection include: Five MAN Truck & Bus sites are additionally validated to the Euro- internal policies and guidelines, Production pean Environmental Management and Audit Scheme (EMAS) and regu- regulations on environmental protection, energy, and occupational safety. Climate and energy larly publish site-specific environmental statements. Alongside occupational safety, environmental protection is firmly Efficient transportation and logistics Organization anchored in the vocational training and continuous professional develop- ment activities of our employees. Environmental and Our environmental management systems are organized at MAN sub- resource conservation group level. The overarching objectives, such as MAN’s Climate Strategy, Consumption of resources and raw materials are additionally reported to the CR function of MAN SE. All goals are pur- Supply chain sued in collaboration with the subgroups, and put into practice by the The principal raw materials, auxiliaries, and consumables used by MAN responsible individuals at each site. in its production are steel, copper, aluminum, and various plastics. People The central Environmental Protection and Occupational Safety func- Managing these resources economically is pivotal to our success. In 2017, Society and integrity tions of the subgroups analyze requirements, implement and steer the expenditure on raw materials, auxiliaries, and consumables was up 3% management systems, and drive them forward in close collaboration compared to the previous year. Annex with the environmental management officers at the production sites. The plant managers and heads of production are responsible for opera- Expenditure on materials tional tasks related to environmental protection. At each site, they are supported by specialist officers and/or environmental protection in € million 2015 2016 2017 experts. Cost of raw materials, consumables, and 6,672 6,532 6,749 auxiliaries, and of purchased merchandise Regular meetings on environmental protection, climate action, and Cost of purchased services 514 460 358 energy management are held at subgroup level to ensure an ongoing Total 7,186 6,992 7,108 exchange of information across all central functions and sites. 25 MAN GRI Report 2017 Environmental and resource conservation
At MAN Diesel & Turbo, additive manufacturing (3D printing) is helping to Production waste Overview reduce material consumption. MAN Diesel & Turbo is the first manufac- in tons 2015 2016¹ 2017 CV PE Foreword turer in the world to produce guide vanes for gas turbines using 3D print- ing, making it possible to manufacture the guide vane segments of an Total waste 9,876 7,872 8,976 6,783 2,193 for disposal Portrait MAN gas turbine in one piece. This increases the efficiency of a turbine Hazardous 5,084 5,102 5,405 4,178 1,227 Our approach thanks to greater accuracy of fit and means that fewer components are produced, which can reduce material consumption by 15–30%. Non-hazardous² 4,791 2,770 3,571 2,605 966 Products Total waste 45,935 44,024 46,417 33,963 12,454 for recycling Production Recycling and waste Hazardous 11,080 11,200 11 013 8,161 2,852 Climate and energy The majority of products manufactured by MAN are made from recyclable Non-hazardous 34,855 32,824 35,404 25,802 9,602 materials. MAN Truck & Bus has started recording the exact proportions Metallic waste 56,948 53,060 52,809 40,579 12,230 Efficient transportation and logistics for product life cycle assessments. Total waste 112,759 104,956 108,202 81,325 26,877 We prioritize the reuse of metals in our foundries in order to save Recycling ratio (%) 91 92 92 92 92 Environmental and raw materials. At our Augsburg and Nuremberg sites, we purchased and 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles resource conservation 2 Due to overly high estimates and cleanup work at our plant in Olifantsfontein in the PE: Power Engineering reutilized specified scrap from external recycling processes. In the year previous years, the sites are no longer directly comparable. under review, these plants also began recycling chips and scrap from our Supply chain own production for reuse in the manufacturing process. Over the same period, total waste volumes amounted to approxi- People Water and wastewater mately 108,203 tons, 92% of which was recycled. Society and integrity The disposal and recycling of hazardous waste is subject to local In the reporting period, we met the bulk of our water requirements from waste management legislation. Disposal providers have confirmed proper well water and surface water abstraction from lakes, rivers, and the sea. For Annex disposal. No waste was exported. trials on the test rigs in Augsburg and Saint-Nazaire (France) by MAN Non-production waste (construction waste) was recorded at 12 sites Diesel & Turbo, we abstracted large volumes of water from watercourses. in the year under review and amounted to 97,229 tons (2016: 96,677 tons). This was used solely for cooling purposes and to operate water brakes dur- ing engine testing. After use, this water is returned to its source. 26 MAN GRI Report 2017 Environmental and resource conservation
At our Munich site, work to expand the central well water supply con Atmospheric pollutants Overview tinued. Groundwater is used for cooling purposes and is then returned to in tons 2015 2016¹ 2017 CV PE Foreword its source. This procedure reduces the amount of energy needed to cool plants and processes. Sulfur dioxide (SO2) 0.96 0.94 1.00 0.64 0.36
Portrait Nitrogen oxides (NOX) 325 320 378 247 131 Particulates 1.40 1.39 1.36 1.00 0.36 Our approach Water consumption and wastewater volume Volatile organic compounds 828 778 792 729 63 (VOC) Products in m3 2015 2016¹ 2017 CV PE Total freshwater 8,026,885 7,649,195 8,952,647 5,432,337 3,520,310 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles Production PE: Power Engineering from external sources 727,847 865,332 859,378 686,336 173,042 (incl. drinking water) Climate and energy from own abstraction 7,299,038 6,783,863 8,093,269 4,746,001 3,347,268 Investment in environmental protection Efficient transportation (incl. well water) and logistics In the year under review, the sites invested around €12.3 million in envi- Surface water from lakes, 7,350,752 8,637,958 7,440,450 140,529 7,299,921 ronmental protection measures (2016: €11 million). Measures imple- rivers, and the sea Environmental and mented under MAN’s Climate Strategy were the principal focus of the resource conservation Wastewater 1,133,546 1,307,620 1,268,790 830,923 437,867 investments. 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles At MAN Diesel & Turbo in Augsburg, a large part of the invest- PE: Power Engineering Supply chain ments went into the refurbishment of test rigs and the construction of a new waste disposal facility. The paint shop at the site in Changzhou (China) People was modernized. Society and integrity Atmospheric pollutant emissions Overall, atmospheric pollutant emissions from production remained con- Annex Environmental violations stant in the year under review. While emissions of nitrogen oxide, sulfur dioxide, and particulates remained largely unchanged, emissions of vola- MAN Latin America paid a fine of €21,000 for exceeding a deadline in con- tile organic compounds increased slightly. nection with the renovation of a well. Otherwise, no accidents with signifi- cant environmental impact resulting in fines occurred in the reporting period. 27 MAN GRI Report 2017 RESPONSIBILITY IN THE SUPPLY CHAIN
The MAN Group’s procurement policy aims to reduce environmental Overview and social risks in the supply chain while simultaneously optimizing Foreword material costs and ensuring security of supply. As well as maximizing Portrait cost-effectiveness and efficiency, we are also committed to improving
Our approach sustainability aspects.
Products
Production
Supply chain
Responsible procurement RESPONSIBLE PROCUREMENT
People Regional suppliers Concept and organization Society and integrity MAN purchases most of its raw materials, goods, and services in the loca- As part of the Volkswagen Group, we have adopted the “Sustainability in Annex tions in which the Company has its production operations. This allows us Supplier Relations” concept. We are part of the Sustainability Procure- to contribute to local economic and social development. For example, ment Network, which now comprises more than 20 experts from the more than 99% of production material suppliers to MAN Truck & Bus have brands and regions who exchange information on a regular basis. This their registered offices in Europe and Turkey; around 75% of them in allows us to identify future developments and challenges at an early stage Germany. Growth potential leveraged by demand for goods and services and develop solutions together. from MAN has a positive impact on infrastructure thanks to downstream The three pillars of sustainability – requirements, monitoring, effects: jobs are created and local incomes rise. Regional suppliers are also training – are designed to minimize and prevent negative social, environ- preferable from an environmental perspective, since shorter logistics mental, and financial impact in our supply chain: chains mean lower transportation-related emissions. 28 MAN GRI Report 2017 Responsible procurement
Responsible supplier relations Requirements that suppliers have to meet Overview Foreword The Volkswagen Group’s suppliers must acknowledge the sustainability requirements before submitting a quote. If suppliers submit another
Portrait Responsible supplier relations quote after a twelve-month period has passed, they must update the Our approach acknowledgment of this information. The requirements apply to all procured goods and services worldwide and Products Pillars of the sustainability concept are written into all supplier contracts ( Code of Conduct for Business Partners). We also expect our tier 1 suppliers to pass these requirements Production on to their own suppliers. This helps ensure a consistently high quality of Supply chain procured goods and services, while avoiding potential supply shortages Requirements Monitoring Training and damage to our reputation. Responsible VW sustainability Early detection to Improvement of procurement requirements in minimize supplier performance The requirements span a range of issues, including environmental the form of a Code risks by way of through protection, employee rights, fair market conduct, and transparent busi- of Conduct as an third-party audits e-learning ness relations, and have been a mandatory element of all contracts since integral contractual People Self-Assessment individual component 2015. They set out expectations in terms of business partners’ conduct Questionnaire training measures with regard to central environmental and social standards. Among other Society and integrity monitoring of the Self-Assessment things, they are based on the principles of the UN Global Compact, the Annex Questionnaire status International Chamber of Commerce's Business Charter for Sustainable Development, and the relevant conventions of the International Labour Organization. The observance of human rights is another key element, including the rejection of child, forced, and compulsory labor, and compli- Suppliers ance with all other regulations on worker protection. These principles are supplemented by MAN’s environmental policy and all related environ- mental targets and regulations, the Group’s Quality Policy, and the Volks wagen Declaration on Social Rights. 29 MAN GRI Report 2017 Responsible procurement
Supplier monitoring “Ad hoc cases” are another central component of the supplier evaluation Overview process. These cases refer to sudden suspicions that a supplier is violating Foreword We use the Volkswagen Group system for sustainable supply chain man- the “Volkswagen Group’s requirements regarding sustainability in sup- agement. In the course of the business process, our business partners are plier relations” arising, for example, during an on-site inspection. Poten- Portrait asked to complete the Self-Assessment Questionnaire (SAQ) and to docu- tial violations can also be addressed to the employee representative bodies
Our approach ment which measures they have taken in selected areas. The SAQ , which is of the Volkswagen Group, to the labor union federations, or to the Volks widely used in the industry, was developed by the Volkswagen Group wagen Group ombudsman system. Products together with other automotive groups. For example, we support a certified environmental management Production Supplier training system according to ISO 14001 and/or EMAS for our main suppliers. The Supply chain use of certified management systems for occupational health and safety Throughout all process steps and measures, the focus is generally on fair according to OHSAS 18001 and/or SA8000 is also considered to be a posi- dialog between partners and on supplier development, in the interests of Responsible procurement tive aspect. continuous, long-term collaboration. To ensure that the concept of sus- MAN also appoints independent auditors to conduct sustainability tainability is firmly anchored in our supply chain, all suppliers can access audits, which scrutinize our suppliers for compliance with environmental, the e-learning module on sustainability. People social, and human rights standards. We train all of our procurement employees on the basis of the Code Society and integrity If one of our suppliers is suspected of violating our sustainability of Conduct for Business Partners and the “Volkswagen Group’s require- requirements, we will request a written statement. If the answers prove ments regarding sustainability in supplier relations.” This topic is an inte- Annex unsatisfactory, we will take further appropriate steps, such as the exami- gral part of the training concept for all employees working in procure- nation of documents, on-site visits to the supplier’s premises, or further ment. A total of 57 new procurement employees were trained in 2017 in tailored supplier training activities. addition to the more than 300 procurement employees that have already undergone training. 30 MAN GRI Report 2017 Responsible procurement
We are aware that, in our industry, many of the potential effects on people Relations” concept means that we are well acquainted with certain Overview and the environment arise primarily in the upstream value chains, country-specific, industry-specific, or even supplier-specific facts and can Foreword for example in raw materials extraction or the production of primary take targeted action based on this information. Absolute certainty regard- products. As a manufacturer with a globally dispersed supply chain, ing the enforcement of our requirements, however, can only be achieved Portrait enforcing our sustainability requirements right down to the last link in through direct communication and control.
Our approach the supply chain is a particular challenge. The “Sustainability in Supplier
Products
Production
Supply chain
Responsible procurement
People
Society and integrity
Annex 31 MAN GRI Report 2017 RESPONSIBILITY FOR PEOPLE
MAN is one of Europe’s leading players in the commercial vehicle and mechanical Overview engineering sectors. To maintain this position going forward, we need highly skilled Foreword and motivated people on our team. It is our aim to offer our employees a safe and Portrait attractive working environment that lets them develop to their full potential. This is
Our approach made possible by our values-based culture of diversity, openness, and transparency.
Products
Production
Supply chain
People
Human resources HUMAN RESOURCES STRATEGY strategy
Attractive employer Being a top employer is an integral part of MAN’s corporate strategy. Retaining the right employees Now and in the future, this means attracting talented and skilled em- We offer flexible working hours models such as Flex Work, trust-based
Vocational and ployees, offering them professional development opportunities and an hours, or telecommuting. Open-plan concepts for different working envi- other training innovative working environment, and actively promoting diversity within ronments boost our employees’ efficiency, innovativeness, and satisfac- Diversity and equal the Company. tion. We support every employee by offering them targeted training opportunities The key priorities for the implementation of our human resources opportunities and honor performance by ensuring that all employees strategy are: share in the Company’s success. Occupational health and safety Attracting the right employees Diversity Our employer marketing activities are aligned with the demands of digita- Diversity is an important issue for MAN, and goes far beyond creating Society and integrity lization and new generations of employees. We offer a variety of opportu- opportunities for women. At MAN, we refer to this key concern as plural- Annex nities for getting started at MAN – from internships for secondary-school ism and understand it as the long-term strategic approach to ensuring our students through a wide range of vocational training programs, our Global future viability. The aim is to develop our corporate culture and to benefit Champion Trainee Program, and traditional direct hiring. from the diverse skills, knowledge, experience, and perspectives of our 32 MAN GRI Report 2017 Human resources strategy
employees in the process. We respect all of our colleagues and create an Principles and guidelines Overview atmosphere of respect and mutual trust. This makes us more innovative, Foreword agile, and dynamic as a company and gives us a competitive edge en route MAN and its employees are active in more than 180 countries. We stand to becoming a Global Champion. for respect and tolerance, have made a clear commitment to diversity, and Portrait do not discriminate based on age, gender, religion, ethnic origin, or sexual orientation. Wherever MAN has production sites, we support local eco- Our approach Organization nomic development by recruiting employees from the region. Products Human resources management within the Group is placed under the cor- porate HR function, headed up by the Chief Human Resources Officer and The following policies provide a binding framework for our human Production Arbeitsdirektor (Executive Board member responsible for employee rela- resources work around the globe: Supply chain tions) of MAN SE and MAN Truck & Bus AG. In the central functions, we UN Global Compact develop uniform methods and instruments and bundle competencies OECD Guidelines for Multinational Enterprises People with the aim of leveraging synergies and setting consistently high-quality Code of Conduct, as amended Human resources standards. Charter on Labor Relations strategy Charter on Temporary Work Attractive employer Policies based on the conventions of the International Labour Organization (ILO) Vocational and other training
Diversity and equal opportunities
Occupational health and safety
Society and integrity
Annex 33 MAN GRI Report 2017 ATTRACTIVE EMPLOYER
Top employer developing a future-oriented and competitive organizational structure, Overview recruiting and retaining the best employees – as the basis for our Foreword To secure a lasting position as a top employer, MAN has committed itself success, to the following objectives: continuously improving and transforming ourselves as an organiza- Portrait offering comprehensive onboarding programs to integrate new tion and adapting to the changing needs of employees and applicants,
Our approach employees into the world of MAN as quickly as possible, and providing topic-specific and interdisciplinary training and CPD, seeing the challenges of globalization and digitalization as an Products facilitating the creation of professional and international networks, opportunity and working with our stakeholders across the globe. fostering cooperation across divisions, and Production positioning MAN as a top employer. Supply chain MAN Future Lab Being a top employer is an integral part of MAN’s FUTURE LION corporate The MAN Future Lab is being built on a site covering around 300 square People strategy. As an employer, we want to use the human resources strategy meters at the Munich headquarters and represents a milestone as MAN Human resources based on FUTURE LION to meet current and future challenges. The world Truck & Bus moves toward the Working World 4.0. The new office concept strategy of work will continue to undergo structural change, particularly due to is based on an open-space approach and is divided into different zones Attractive employer megatrends such as globalization and the use of new technologies. This that are individually adapted to suit a whole range of work situations. means that the needs of our employees and applicants are changing, too. The MAN Future Lab is equipped in a way that makes it possible for
Vocational and MAN needs employees with skills that are in demand now and will remain employees to try out different hardware and software solutions thanks to other training in demand in the future. Within this context, it is MAN’s responsibility to new and modern IT infrastructure. We are striving for cultural change by Diversity and equal train its employees and further develop their skills on an ongoing basis. adopting a 360-degree approach. This includes non-territorial leadership, opportunities MAN is working toward its objectives with the aid of four strategic agile methods, space & equipment, IT resources, and cross-functional col- focal points: laboration. Occupational health and safety
Society and integrity
Annex 34 MAN GRI Report 2017 Attractive employer
Fostering young talent provide cover for the risk of permanent disability or death during active Overview employment. Employees benefit from employer contributions that are Foreword It is our aim to attract and retain talent at an early stage. We offer intern- tied to their remuneration and can make additional provision through ships, scholarships, and career development programs, as well as PhD and deferred compensation – which is employer-subsidized for staff who are Portrait trainee programs, to young people who are attending or have recently covered by collective bargaining agreements.
Our approach graduated from universities and vocational-technical schools. In addition, For employees at sites outside Germany, depending on the usual MAN Truck & Bus and MAN Diesel & Turbo are represented at some ten practice in each country we make market-based contributions to third- Products specialist and university career fairs every year and stage targeted activi- party pension plans or retirement investment funds. These also include ties at colleges and universities around the world. defined benefit pension plans, the majority of which are designed to pro- Production vide lifelong annuities. Supply chain Stimmungsbarometer employee opinion survey More information on this topic can be found in the MAN 2017 Annual Report on pages 117f. People [G4-26] In 2017, we conducted our employee opinion survey, Stimmungs-
Human resources barometer, for the fifth time, with around 45,000 employees across Job security strategy all subgroup companies taking part. The participation rate was 80% at Attractive employer MAN SE/MAN Truck & Bus, 77% at MAN Diesel & Turbo, and 96% at MAN As part of a realignment of the MAN Truck & Bus production network, we Latin America – all lower than in the previous year. The measured level of have streamlined our European manufacturing group, clearly defining the
Vocational and employee satisfaction was 74.0 at MAN SE/MAN Truck & Bus, 73.4 at operational focal points of each plant. We achieve higher productivity by other training MAN Diesel & Turbo, and 94.3 at MAN Latin America, down slightly on the bundling similar types of production at fewer sites, while efficient vertical Diversity and equal prior-year level. integration keeps our headcount at an almost consistently high level. opportunities The results form the basis for almost 2,000 measures which will be Against this backdrop, MAN Truck & Bus plans to make a three-digit mil- initiated and implemented in the departments and teams in 2018 to lion euro investment by 2019. These plans are being rolled out in consulta- Occupational health and safety improve cooperation and the working environment. The survey is con- tion with the responsible Works Council committees and labor unions in ducted on a standardized, anonymous basis throughout the Volkswagen Germany, Poland, Austria, and Turkey. As part of this realignment, we are Group. well on our way to achieving our goals in the period indicated and to being Society and integrity well-equipped for the mounting challenges of the future. Annex Retirement benefits In the fall of 2016, MAN Diesel & Turbo launched its Base Camp 3000+ program dedicated to ensuring the future viability and profitability Employees in Germany receive benefits from the occupational pension of the company. Base Camp 3000+ will tackle the further development of system that constitute a key element of MAN’s remuneration policy. These the company’s strategy in light of the business sector’s increasing focus on benefits represent a source of additional income on retirement and also digitalization and carbon neutrality, with the long-term aim of boosting 35 MAN GRI Report 2017 Attractive employer
earnings by €450 million. The greatest share of this improvement will be MAN recognizes the rights of workers to form and participate in unions Overview achieved through efficiency measures and optimization affecting devel- and to conduct collective bargaining. Almost all permanent staff in Foreword opment, sales, quality, product costs, and Group functions. Furthermore, Germany are covered by collective bargaining agreements; around the at the end of March 2017, the Executive Board and General Works Council globe, the share of our workforce which falls under collective agreements Portrait of MAN Diesel & Turbo SE agreed on a series of measures aimed at the stands at 83%.
Our approach structural optimization of the company’s Augsburg, Berlin, Hamburg, and The Volkswagen Charter on Temporary Work has been rolled out Oberhausen sites. A total of 900 jobs will be cut as a result of these mea- at MAN Truck & Bus and MAN Diesel & Turbo. In the various countries Products sures, 600 of them in Germany. Further savings will be targeted through where MAN is active, employee relations are structured in accordance the streamlining of procurement and order processing. Under the plan, with national laws and regulations. Production each site in the turbomachinery network will be assigned clearly defined Supply chain competences and products. The company’s two Hamburg plants will be Employee structure merged. The negotiated agreement does not call for any site closures People or layoffs; the downsizing will be conducted in accordance with the com- The MAN headcount is defined as all active employees (permanent staff), Human resources pany’s commitments to social responsibility. The agreed measures are due employees in the passive phase of partial retirement, and vocational strategy to be implemented by the end of 2018 at the latest. trainees. It does not include subcontracted employees. Attractive employer On December 31, 2017, the MAN Group employed 54,297 people (2016: 53,824 people) in more than 180 countries. This represents an Employee rights Vocational and increase of 473 employees compared with the end of 2016. The ratio of other training The principles of conduct set out in the new Code of Conduct are based on employees in Germany to those in other countries changed only slightly. Diversity and equal MAN’s shared corporate values: customer focus, integrity, respect, team Our non-German companies employed a total of 22,856 people in the year opportunities spirit, and determination. The Code of Conduct focuses on the integrity under review (2016: 22,380 people), with 31,441 people employed in Ger- and responsibility of each individual. It also uses practical examples to many (2016: 31,444 people). Occupational health and safety explain how each individual can live up to this responsibility and act with The number of employees on fixed-term contracts rose by 5.9% to integrity – especially in situations of conflict. 1,992 (2016: 1,881 employees). The number of subcontracted employees In the year under review, one case of discrimination was reported came to 2,584 (2016: 1,562 employees), with 125 (2016: 109) of them being Society and integrity and resulted in MAN imposing sanctions in the form of measures under taken on as permanent staff. The increase in subcontracted employees Annex employment law. compared with 2016 was mainly due to demand at MAN Truck & Bus (+730) and MAN Diesel & Turbo (+261). In the year under review, 1,006 women (2016: 941 women) and 343 men (2016: 309 men) at MAN held part-time contracts not related to parental leave. 36 MAN GRI Report 2017 Attractive employer
Employees by business area Employees by location Overview 2015 2016 2017 2015 2016 2017 Foreword Commercial Vehicles 37,599 36,777 37,501 Germany 31,720 31,444 31,441 Portrait Power Engineering 17,133 16,808 16,553 Abroad 23,310 22,380 22,856 Other 298 239 243 Total 55,030 53,824 54,297 Our approach MAN Group 55,030 53,824 54,297 % in other countries 42 42 42 Products
Production Employee structure1 Age structure1 Supply chain 2015 2016 2017 2016 2017 People Permanent staff 51,234 49,982 50,455 <30 8,256 8,422 Human resources of which women 7,102 6,758 6,878 31–40 14,978 15,028 strategy of which men 44,132 43,224 43,577 41–50 14,264 14,139 of which part-time employees 1,183 1,250 1,349 51–60 10,950 11,292 Attractive employer of which employees on fixed-term contracts 1,467 1,881 1,992 > 61 1,534 1,574
Vocational and Trainees 3,177 3,145 3,132 Total 49,982 50,455 other training of which women 571 547 559 ¹ only permanent staff Diversity and equal of which men 2,606 2,598 2,573 opportunities of which: Germany 2,268 2,245 2,169 Employees, passive partial retirement 619 697 710 Employee turnover Occupational health and safety Workforce 55,030 53,824 54,297 The employee turnover rate indicates what percentage of employees left Subcontracted employees 802 1,562 2,584 the company during a one-year period. Employees on fixed-term con- 1 at the end of the year in each case tracts and employees starting retirement or partial retirement are not Society and integrity included in the calculation of this indicator. The relevant 2,108 departures Annex in 2017 result in an employee turnover rate of 4.2%, down by 0.8 percent- age points on the previous year. In the year under review we hired a total of 3,206 people, while 3,933 left our Company.¹
1 “Employees who have left the Company” (3,933) includes employees on fixed-term contracts and employees starting retirement or partial retirement. These are not included in the aforementioned “departures” (2,108). 37 MAN GRI Report 2017 VOCATIONAL AND OTHER TRAINING
Vocational training and the dual model In order to prepare MAN Truck & Bus for the digital future of the working Overview world and to familiarize vocational trainees and students on dual pro- Foreword Our dual model of vocational training ensures the professional develop- grams with the challenges of Industry 4.0, they are already being intro- ment of the next generation of outstanding technical and commercial duced to the relevant content as part of their vocational training/studies. Portrait employees. The program, which is anchored in the MAN Academy, saw The “Berufsausbildung 4.0” (Vocational Training 4.0) platform provides
Our approach some 730 (2016: 800) young people start their careers at the MAN Group digital support for all training content and projects spanning all voca- in the fall of 2017 – in locations including Germany, Austria, Turkey, and tional training careers and, as well as familiarizing the trainees with the Products Poland. use of various applications and tablets, enables the acquisition of subject- In the year under review, there were 3,132 (2016: 3,145) young talents related digital skills. MAN’s vocational training department has also Production training for a total of 26 different vocational training careers. 17.8% (2016: invested in new digital learning objects such as robot arms or 3D printers Supply chain 17.4%) of them were women in the year under review. and offers opportunities for “digital welding” and “digital painting.” In cooperation with various universities, 169 (2016: 180) students People on dual education and integrated vocational training and degree pro- Human resources grams are currently completing the practical part of their studies at our Vocational training strategy sites in Germany; 20.1% (2016: 25.4%) of them are women. Attractive employer
Vocational and 6.2% other training is the percentage of vocational trainees in our permanent workforce Diversity and equal opportunities
Occupational health and safety
Society and integrity
Annex 38 MAN GRI Report 2017 Vocational and other training
Continuous professional development and training Strategic and technological innovation and the transformation of the Overview working world, driven by digitalization and Industry 4.0, call for new work- Foreword Digitalization is not the only change facing the Company. A new genera- ing and learning methods and formats. With a focus on future competen- tion of employees is transforming our understanding of working methods, cies and new requirements, the Berufsfamilien Academies expanded their Portrait models, and environments, as well as the associated forms of collabora- range of training programs in 2017 to include electric mobility, Advanced
Our approach tion, communication, and leadership. This is why we have developed tar- Driver Assistant Systems (ADAS), and agile working methods. This includes geted measures for continuous professional development and training. certification courses for Scrum Master and Scrum Product Owner, as well Products Approximately 121,174 participants took part in some 5,995 con as “Scrum in a Nutshell” or “Agile Working Methods.” The range of training tinuous professional development (CPD) and training initiatives in 2017. programs on offer is also being fundamentally revamped and updated to Production Each MAN Truck & Bus employee received an average of 20.3 (2016: 20.3) take “Lean Training” aspects into account. Supply chain CPD hours in the year under review. At MAN Diesel & Turbo, 27,033 par- ticipants took part in 3,117 CPD and training initiatives during the same People Leadership and management training period. This brought the average number of CPD hours per employee to Human resources 16.0 (2016: 16.4). As the working environment continues to change, digitalization pro- strategy Internal experts impart specific specialist skills as part of the gresses, and the disconnect between workplace and working hours grows, Attractive employer “Berufsfamilien Academies” (BFA) concept, ensuring systematic knowl- managers in particular are facing new challenges. edge transfer and employee training. The MAN Academy broadens this The training portfolio was realigned in order to develop the corre- Vocational and offering and guarantees uniform standards of quality and competencies sponding leadership and management competencies for MAN with a view other training around the globe. to the future. Topics such as “Digital Leadership,” ”Navigating Complexity Diversity and equal and Networking,” and “Innovation & Agile Leadership” are examples of opportunities our new training modules.
Occupational health and safety
Society and integrity
Annex 39 MAN GRI Report 2017 DIVERSITY AND EQUAL OPPORTUNITIES
Equal opportunities Our guidelines for management hiring specify that diversity and the Overview placement of qualified women, in particular, are to be given due consider- Foreword MAN is committed to pluralism and equal opportunities – respecting ation. Our new managers receive training to raise their awareness of the employees regardless of age, gender, religion, ethnicity, and sexual orien- issue of equal opportunities. In the year under review, the proportion of Portrait tation. We actively recognize and promote diversity in our workforce female managers came to 9.3% (2016: 9.2%). Furthermore, since the new
Our approach worldwide, since we are convinced that this will boost our competitive elections to the Supervisory Board held at the 2016 Annual General Meet- standing and lay the foundation for our future business performance. ing, the composition of the Company's Supervisory Board has complied Products This is also why we have signed the Diversity Charter. with the requirements set out in section 17 (2) of the SE-Ausführungs One focal point is equal opportunities for men and women. We gesetz (SE Implementation Act) with regard to the proportion of women Production attract female employees at events such as the Women's Career Day. MAN and men. Supply chain offers special HR development measures, such as its mentoring program or an orientation program to motivate potential female candidates to People Women in management positions embark on a management career, to support women who are starting out Human resources as specialists and managers. We offer special programs and training 2015 2016 2017 strategy courses for our employees on parental leave. Level 1 2 4 4 Level 2 33 32 35 Attractive employer Level 3 87 92 98 Vocational and Total 122 128 137 other training Share as a % 8.5 9.2 9.3
Diversity and equal opportunities
Occupational health and safety
Society and integrity
Annex 40 MAN GRI Report 2017 Diversity and equal opportunities
Overview Balancing work and family life Inclusion
Foreword MAN continues to work to help its employees achieve a better work-life The Company management, the General Works Council, and the Group balance, offering measures which include various flexible working hours Council for Employees with Disabilities see inclusion as a systematic Portrait models, the opportunity to split a full-time position into two part-time embodiment of their commitment to diversity and equal opportunities.
Our approach positions, and company daycare centers at MAN’s Munich and Augsburg In the year under review, MAN employed 1,716 severely disabled people in sites that care for 157 (2016: 137) infants, toddlers, and young children. We Germany (2016: 1,689 people). Examples of active measures to promote Products also offer part-time hours for management staff. inclusion at our Munich site include redesign of workstations, creation of Information sessions for expecting parents, a seminar on re-entry new jobs for severely disabled persons, accessible communication for deaf Production into the workforce after parental leave, a vacation program for employees’ employees, and mobility aids. Supply chain children, and the option to work from home round off the opportunities At the MAN Truck & Bus plant in Salzgitter, inclusion is an integral available at the Munich site. In addition, employees in Bavaria can take part of the vocational training program. As part of the Changing Sides People advantage of a caregiver placement service to help find appropriate care project, vocational trainees from the Braunschweig chapter of Lebenshilfe, Human resources for children and family members. an association for the support of people with disabilities, spend two weeks strategy at the MAN Academy. In return, five vocational trainees from MAN spend Attractive employer two weeks helping out at the Lebenshilfe workshop.
Vocational and other training
Diversity and equal opportunities
Occupational health and safety
Society and integrity
Annex 41 MAN GRI Report 2017 OCCUPATIONAL HEALTH AND SAFETY
Occupational health and safety management In addition to preventive measures to counteract physical illnesses, Overview MAN Truck & Bus has also been assessing possible dangers to mental Foreword Shifting demographics and the ever-increasing pace of change in the health in the workplace at the Munich plant since 2017. A checklist pro- working environment and in manufacturing processes present significant vided by the German Employer's Liability Insurance Association for the Portrait challenges for occupational health and safety at MAN. Within the context Timber and Metal-Working Industry (BGHM), which was adapted and opti-
Our approach of our comprehensive occupational health and safety system, we consider mized to reflect MAN’s specific circumstances in cooperation with an prevention, occupational safety, occupational health promotion, corpo- occupational psychologist, was used for the purposes of the risk assess- Products rate reintegration management, and ergonomics to be our top priorities. ment. The aim is to incorporate dangers to mental health into the techni- The central health services functions at MAN provide advice to us cal risk assessment in the long term. Production as an employer in the formulation and implementation of our Company- MAN Diesel & Turbo introduced the two-day Boarding at Sea train- Supply chain wide health management strategy. The aim is to develop and uphold prin- ing course in the reporting period. The training is aimed at field service ciples that apply in every location in order to achieve a coordinated strate- staff and teaches them how to transfer safely to a vessel from a transporta- People gic approach to health services worldwide. In addition, the health services tion boat. Human resources at our plants act independently to address specific concerns with appro- In the reporting period, MAN Latin America invested in an accident strategy priate measures. prevention system at the plant in Resende (Brazil) for the new Delivery Attractive employer truck product line. By way of example, mechanical barriers, presence detectors, and safety switches were installed. Vocational and Preventive occupational safety other training Occupational safety includes all measures related to preventing workplace Lost-time injuries1 Diversity and equal accidents, work-related illnesses, and occupational diseases. Across our opportunities plants, we systematically evaluate workstation ergonomics and potential 2015 2016 2017 workplace hazards. Across the Group, we have continued with all existing Number of lost-time injuries2 830 835 790 Occupational health Accident frequency index3 13.0 13.5 12.6 and safety initiatives to cut accident rates and prevent work-related illness. In addi- tion, we conduct regular internal and external occupational health and Accident severity index4 17.2 16.6 16.4 safety audits and inspections. 1 Only reported lost-time injuries affecting permanent staff in production or at production-related sites Society and integrity 2 In accordance with the Sozialgesetzbuch (SGB — German Social Code), lost-time injuries are defined as injuries incurred by the insured while carrying out their insured employment. We count lost-time injuries starting at one day of missed work. 3 The accident frequency index is an indicator of the frequency of lost-time injuries relative to the sum of all hours worked. The formula for Annex calculating the index is the number of workplace accidents multiplied by 1 million divided by hours worked. 4 The accident severity index indicates the severity of accidents by showing the sum of workdays missed due to injury in relation to the num- ber of hours worked. The formula for calculating the index is the number of workdays missed multiplied by 1 million divided by hours worked multiplied by 10.
There were no (2016: 1) fatal workplace accidents in 2017. 42 MAN GRI Report 2017 Occupational health and safety
Behavior-based safety In addition to OHSAS 18001 certification, SCC (Safety Certification Con- Overview tractors) certification of the PrimeServ service also plays an important Foreword We promote the health of our employees by taking measures to reduce role at MAN Diesel & Turbo. This certification of individuals and certain accidents, prevent occupational illnesses, and maintain good health. organizational units is a fundamental prerequisite for the performance of Portrait Behavior-Based Safety Training is offered at MAN Diesel & Turbo to contracts with customers, especially in the oil and gas industry.
Our approach promote awareness of safety aspects. In addition, the Zurich site has its own safety circuit and has also developed and established “9 vital rules” as Occupational health Products part of an initiative to promote safety awareness. With our occupational health management program, we are aiming to Production OHSAS 18001 and SCC certification successively systematize all health-related measures within the Company. Supply chain Our health activities not only target working conditions, but also the Our occupational safety management is part of our integrated manage- behavior of the individual employees. People ment system. The OHSAS 18001 certified management systems at our Through our targeted occupational health measures, we encourage Human resources sites help to continuously improve the safety and health of our workforce. our employees to take the initiative in matters concerning their own strategy A total of 29 of our sites have been awarded the certificate for health and health. This not only includes offerings from our annual health program, Attractive employer safety at work. The Bangalore, Olifantsfontein, and Pinetown sites were but also initiatives such as stop smoking classes, intraocular pressure certified for the first time in the year under review. examinations, flu shots, massages, and a healthy eating program in coop-
Vocational and eration with Weight Watchers. In cooperation with the MAN Academy, we other training offer numerous training programs which reinforce employees’ personal responsibility, underpin healthy behavior and teamwork, and foster a Diversity and equal Occupational safety management opportunities leadership culture which promotes good health. As part of our corporate integration management program, 453 Occupational health and safety MAN sites are certified under the employees were integrated back into day-to-day working life in 2017 after 29OHSAS 18001 occupational health and safety prolonged absences due to illness or accidents. The MAN Checkup is a pre- management system (2016: 27 sites) ventive health initiative which is also aimed at helping employees remain Society and integrity healthy as well as identifying any potential risks at an early stage. Annex 43 MAN GRI Report 2017 Occupational health and safety
At MAN Diesel & Turbo, the employee assistance program (EAP) is another In order to boost performance and well-being and to strengthen the Overview important pillar of occupational health management. An integral part of personal health-related skills of employees at MAN Truck & Bus, a health Foreword our HR policy for many years, EAP services include counseling during room is being set up at the Munich site. Together with an external health crisis situations and the development of concrete solutions. care provider, an operator model is being developed that includes differ- Portrait ent course formats and health services.
Our approach
Products
Production
Supply chain
People
Human resources strategy
Attractive employer
Vocational and other training
Diversity and equal opportunities
Occupational health and safety
Society and integrity
Annex 44 MAN GRI Report 2017 RESPONSIBILITY FOR SOCIETY AND INTEGRITY
Our business practices are shaped by corporate responsibility (CR). It is our aim to Overview put our responsibility into practice every single day. In addition to responsible corporate Foreword governance and compliance with applicable laws, this also includes open dialog with Portrait our stakeholders. Our corporate citizenship initiatives and MAN aid to refugees also
Our approach enable us to make a lasting contribution to sustainable development.
Products
Production
Supply chain
People
Society and integrity COMPLIANCE AND RISK MANAGEMENT
Compliance and risk management MAN does not tolerate illegal or irregular conduct. Compliance with appli- Organization cable laws is the basic precondition for the success of our business.
Stakeholder dialog “Compliance is an integral part of MAN's corporate strategy. All As part of its responsibility for compliance and risk management, which is
Corporate citizenship employees must be aware of their individual responsibility and make also set out in the German Corporate Governance Code, the Executive their contribution so that we can live up to our social responsibility Board of MAN SE has established the Governance, Risk & Compliance together. Compliance with laws, fundamental ethical values, and internal (GRC) organization. Annex policies is a matter of course for all of us – regardless of when and where The GRC organization is headed by the Head of GRC/Chief Compli- we work. We operate a zero-tolerance policy for violations of the law,” says ance Officer, who reports directly to the Chief Executive Officer of MAN SE Joachim Drees, Chief Executive Officer of MAN SE and MAN Truck & Bus AG. as well as to the Audit Committee of the Supervisory Board. The GRC orga- nization is responsible for compliance and risk management issues throughout the Group. The Corporate GRC Office performs central compliance and risk management tasks. This includes, for example, drafting policies and regu- lations that apply throughout the Group as well as designing training 45 MAN GRI Report 2017 Compliance and risk management
sessions for employees. In addition, the Corporate GRC Office carries out a Policies Overview specific risk analysis on a regular basis to identify potential compliance The GRC organization has also developed policies on the compliance Foreword risks for the Group and to align and further develop the Group-wide com- issues of combating corruption, antitrust law, and money laundering pre- pliance management system based on these risks. The Corporate GRC vention. These policies have brought uniform and binding requirements Portrait Office also steers risk management processes in the subgroups and is for all employees throughout the Group into force.
Our approach responsible for further developing the risk management measures in cooperation with the risk/ICS (Internal Control System) managers. Business Partner Approval Tool Products The GRC organization at subgroup level is responsible for imple- The Business Partner Approval Tool is used to check and approve the menting the compliance management system and the risk management integrity of business partners providing sales support. In total, 1,376 Production system in the Group companies of the subgroups. Each subgroup has a checks were conducted using this tool in the reporting period. Supply chain Head of GRC/Compliance Officer who is supported by compliance managers and risk/ICS managers in the different business units/sales regions. People Compliance training The GRC organization conducts regular face-to-face and online training Society and integrity Elements of the MAN compliance management system sessions on topics such as combating corruption, antitrust law, money laundering prevention, and data protection. In 2017, the spotlight was on Compliance and risk management The compliance management system developed by the GRC Office the rollout of two new online courses. These are refresher courses focusing addresses the topics of white-collar crime (in particular, combating cor- on combating corruption and on antitrust law. These courses are designed
Stakeholder dialog ruption, money laundering prevention, terrorism funding) and antitrust to remind participants of the material covered in the basic online learning
Corporate citizenship law. courses.
Code of Conduct Compliance Helpdesk Annex Ethical principles of conduct and fundamental compliance requirements All MAN employees can contact the Compliance Helpdesk by phone or for the MAN Group are laid down in the Code of Conduct. The Code also e-mail to obtain answers to compliance-related questions. This gives the describes the corporate values and provides guidelines on integrity. The GRC organization an overview of frequently asked questions in order to MAN Group Code of Conduct was updated in 2017 and came into force on identify further preventive compliance measures. In 2017, the Compliance January 1, 2018. Helpdesk in the central GRC organization answered 378 questions from employees. 46 MAN GRI Report 2017 Compliance and risk management
Reporting compliance violations Memberships Overview The “Speak up!” whistleblower portal helps to uncover and prevent serious Foreword risks for MAN. “Speak up!” is used to accept and analyze information relat- MAN is a member of Transparency International and the German Insti- ing to serious infringements of the law, especially in the areas of white- tute for Compliance (DICO). MAN also remains committed to the Ten Prin- Portrait collar crime (e.g., corruption offenses, suspected money laundering activi- ciples of the United Nations Global Compact and supports the Alliance for
Our approach ties, and terrorism funding), antitrust law, and data protection. These Integrity, which promotes integrity in business practices. reports are investigated in detail and violations are dealt with and sanc- Products tioned in line with the penalties permitted under labor law. The Disciplin- Data protection ary Sanction Committee is the body responsible for imposing internal Production sanctions. In addition, findings from the investigation of compliance vio- MAN stands for effective data protection in compliance with legal regula- Supply chain lations are used to continuously improve the compliance management tions, applied worldwide based on the rigorous European standards. Since system. the spring of 2017, the MAN companies in the European Union have been People preparing intensively to meet the new requirements that apply to them Society and integrity Compliance measures in 2017 under the EU General Data Protection Regulation, which came into force on May 25, 2018, in a timely manner. In order to meet both the statutory Compliance and 2017 risk management challenges and the challenges that MAN defines for itself, the MAN Group Business Partner Approval Tool 1,376 business partners checked maintains a worldwide network of data protection officers and coordina-
Stakeholder dialog 390 face-to-face sessions with 4,238 participants tors who work to ensure that the data protection-related privacy rights of Compliance training 29,575 employees participated in online sessions Corporate citizenship employees, customers, suppliers, and business partners are protected. The Compliance Helpdesk 378 questions answered by the central Compliance organization, global coordination of data protection activities in the reporting period another 2,056 handled locally was the responsibility of Group Data Protection, an organizational unit Annex Additional measures Various communication measures were taken in 2017 reporting directly to the Chief Executive Officer. to promote integrity. This includes the publication and communication of the film on integrity, one of the corporate values, in a total of 12 languages, the distribution of GRC alerts and GRC newsletters on current GRC and compliance topics, and events at the Group companies to mark International Anti-Corruption Day on December 9, 2017. 47 MAN GRI Report 2017 STAKEHOLDER DIALOG
Overview Memberships Dialog with policymakers and businesses
Foreword With the aim of supporting dialog and communication between industry, [G4-26] We are actively working to develop solutions for global challenges. policymakers, and society, we are a member of numerous associations and To this end, we also contribute our knowledge and expertise to the Portrait organizations. MAN makes an active contribution to the working groups ongoing political debate. Our focus here is on topics relevant to our core
Our approach and management committees of these associations and organizations. business, such as reducing worldwide CO₂ emissions caused by the Our most important memberships are: transportation of goods and people. [G4-25] To this end, we maintain an Products German Association for Materials Management, Purchasing, ongoing dialog with the responsible ministries at the national, EU, and and Logistics international levels, as well as with elected representatives and opinion Production Association of German Freight Forwarders and Logistics Operators leaders from the government and the opposition. At local level, for Supply chain German Transport Forum example, the company is involved in the Munich Business Climate Pact European Automobile Manufacturers’ Association (ACEA) and the Bavarian Environmental Pact. People International Chamber of Commerce Germany The MAN guidelines for lobbying are defined in a Code of Conduct Society and integrity Transparency International Germany which applies throughout the Group. This Code explicitly outlines our German Association of the Automotive Industry commitment to nonpartisanship and to making our positions trans Compliance and risk management German Engineering Federation parent. In 2017, MAN spent around €250,000 on direct lobbying activities. Bavarian Business Association Stakeholder dialog The various dialog formats with our customers are described in the chap-
Corporate citizenship At EU level, MAN is involved in European Technology Platforms (ETPs), ter entitled “Responsibility for products” (, page 17). which are working to develop strategic innovation and research programs that will drive sustainable and competitive mobility of people and goods. Annex 48 MAN GRI Report 2017 CORPORATE CITIZENSHIP
Overview Corporate citizenship Promotion of social startups
Foreword The MAN Group sees itself as part of society and aims to contribute to sus- MAN Truck & Bus supports social startups in the transportation sector tainable development. All donations and sponsorship activities must with the MAN Impact Accelerator program, which was launched in 2017. Portrait comply with our mandatory, Group-wide policy. Our donation activities The focus is on solutions to global challenges such as population growth
Our approach tend to be closely related to our core business, and cover areas such as edu- and urbanization. cation, academia, culture, and social affairs (social welfare, charitable and MAN is organizing the program in collaboration with the Yunus Products humanitarian projects, and disaster relief). Social Business Initiative launched by Nobel Peace Prize winner Muham- mad Yunus. MAN’s approach involves sending its own young talents to Production support the young entrepreneurs in social corporate projects by contrib- Supply chain uting their specialist expertise, including on location. Donations People Education in Africa Society and integrity €1 million MAN believes that solid education and training is one of the key prerequi- Compliance and was the amount that the MAN Group donated to support risk management charitable projects in 2017 (2016: €1.1 million) sites for finding a way out of poverty. The Company supports various school and training projects organized by SOS Children’s Villages for dis-
Stakeholder dialog advantaged children and young people in Africa, among other places.
Corporate citizenship In close partnership with SOS Children’s Villages, MAN supported We have enjoyed a successful strategic partnership with SOS Children’s Vil- the “Education for a better future in Africa” program in 2017 – in addition lages since 2008. We support the organization by contributing €150,000 a to other education and refugee integration projects in Germany. The aid Annex year as part of a sponsorship arrangement. Our joint activities focus on organization has projects running in 25 African countries, covering topics long-term and sustainable education programs for children and young ranging from early childhood education through vocational training for people. In addition to our international commitments, we also provide adults. MAN is also supporting the SOS vocational training center Kality in targeted support to local academic and educational institutions, such as the Ethiopian capital of Addis Ababa, where young people can undergo the Technical University (TU) and the Deutsches Museum in Munich, as training in a range of technical occupations. well as cultural institutions such as the Augsburg Philharmonic Orchestra. In Burkina Faso, MAN and Missio – the development aid organiza- tion of the Catholic Church – are supporting the expansion of a girls’ school built in Fada N'Gourma in 2017, equipping it with four additional 49 MAN GRI Report 2017 Corporate citizenship
classrooms for 240 schoolgirls. School education in Burkina Faso, one of Social and environmental commitment Overview the poorest countries in the world, is traditionally only for boys. As a Foreword result, targeted educational support is particularly important in the quest Social and ecological responsibility is an integral part of MAN's corporate to improve equal opportunities and equal rights. culture. Many employees are involved in charitable projects on a volun- Portrait tary basis, including in cooperation with the Munich Child Protection League (Kinderschutzbund München), SOS Children’s Villages, and the Our approach Charitable health care Bavarian nature conservation association (Bund Naturschutz in Bayern). Products The collaboration with the nongovernmental organization Mercy Ships – The voluntary work performed included renovation work and a campaign a health care charity that operates worldwide – was expanded in 2016 to aimed at maintaining areas designated as natural habitats. Production include a sponsorship agreement. The NGO’s hospital ships offer free Supply chain state-of-the-art medical services to people with no regular access to health Promotion of culture care. The agreement between MAN Diesel & Turbo and Mercy Ships People pledges the annual provision of spare parts for the four engines of the MAN has been the main sponsor of the Augsburg Philharmonic Orchestra Society and integrity Africa Mercy hospital ship to the value of up to €250,000. since as far back as 2012. Annual funds of €60,000 are used to recruit renowned soloists to give guest performances. In 2017, MAN and a co- Compliance and risk management Refugee integration sponsor also hosted the regional “Jugend forscht” competition in Augs- burg; this cooperation to support budding young scientists has also been
Stakeholder dialog MAN offers refugees specific career prospects within the MAN Group. In in place since 2012.
Corporate citizenship the 2017 fiscal year, the Company integrated 89 refugees in different ways: 54 young refugees completed internships, 7 completed initial training, Scholarships 19 completed a vocational training program, and 9 other refugees were Annex employed by the Company. Since 2011, MAN has supported approximately 420 recipients of the Germany Scholarship, which opens up educational opportunities to high- performing students regardless of their social background and the location of their university. Since 2016, supporting students of computer science and comparable courses of study has been a particular focal point. We col- laborate with almost 100 technical universities around the world in total. 50 MAN GRI Report 2017 Annex OVERVIEW OF KEY INDICATORS
Overview Financial figures
Foreword Financial figures Employees by business area
Portrait in € million 2016 2017 2015 2016 2017 Sales revenue 13,564 14,342 Commercial Vehicles 37,599 36,777 37,501 Our approach Order intake 14,357 16,062 Power Engineering 17,133 16,808 16,553 Products Operating profit 204 566 Other 298 239 243 Donations 1.1 1.0 MAN Group 55,030 53,824 54,297 Production
Supply chain Women in management positions
People 2015 2016 2017 Society and integrity Employee figures Level 1 2 4 4 Level 2 33 32 35 Annex Level 3 87 92 98 Employee structure¹ Overview of key Total 122 128 137 indicators 2015 2016 2017 Share as a % 8.5 9.2 9.3 Permanent staff 51,234 49,982 50,455 GRI Content Index and of which: women 7,102 6,758 6,878 UN Global Compact Number of lost-time injuries¹ Communication on of which: men 44,132 43,224 43,577 Progress of which: part-time employees 1,183 1,250 1,349 2015 2016 2017 of which: employees on fixed-term contracts 1,467 1,881 1,992 Number of lost-time injuries2 830 835 790 Independent Practitioner’s Limited Vocational trainees 3,177 3,145 3,132 Accident frequency index3 13.0 13.5 12.6 Assurance Report of which: women 571 547 559 Accident severity index4 17.2 16.6 16.4
1 of which: men 2,606 2,598 2,573 Only reported lost-time injuries affecting permanent staff in production or production-related sites About this report 2 In accordance with the Sozialgesetzbuch (SGB — German Social Code), lost-time injuries are defined as injuries incurred by the insured of which: Germany 2,268 2,245 2,169 while carrying out their insured employment. We count lost-time injuries starting at one day of missed work. Credits and Employees, passive partial retirement 619 697 710 3 The accident frequency index is an indicator of the frequency of lost-time injuries relative to the sum of all hours worked. The formula for additional information calculating the index is the number of workplace accidents multiplied by 1 million divided by hours worked. Headcount 55,030 53,824 54,297 4 The accident severity index indicates the severity of accidents by showing the sum of workdays missed due to injury in relation to the number of hours worked. The formula for calculating the index is the number of workdays missed multiplied by 1 million divided by hours Subcontracted employees 802 1,562 2,584 worked multiplied by 10. 1 at the end of the year in each case 51 MAN GRI Report 2017 Annex – Overview of key indicators
Expenditure on materials Overview Environmental figures in € million 2015 2016 2017 Foreword Energy consumption1 Expenditure on raw materials, auxiliaries, 6,672 6,532 6,749 Portrait in MWh 2015 2016 2017 CV PE consumables, and procured supplies Direct energy consumption 660,972 647,206 678,696 432,495 246,201 Expenditure on procured services 514 460 358 Our approach (combustion fuels and gases) Total 7,186 6,992 7,108 Products Indirect energy consumption 736,304 719,905 698,604 520,740 177,864 Electrical energy 470,722 458,185 446,460 313,500 132,960 Production Water consumption and wastewater volume¹ Thermal energy 265,582 261,720 252,144 207,239 44,905 Supply chain Total 1,397,276 1,367,111 1,377,300 953,235 424,065 in m3 2015 2016 2017 CV PE 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles Total freshwater 8,026,885 7 649,195 8,952,647 5,432,337 3,520,310 People PE: Power Engineering from external sources 727,847 865,332 859,378 686,336 173,042 (incl. drinking water) Society and integrity from own abstraction 7,299,038 6,783,863 8,093,269 4,746,001 3,347,268 CO reductions from implementing MAN’s Climate Strategy1 Annex 2 (incl. well water)
Overview of key Year taken Surface water from lakes, 7,350,752 8,637,958 7,440,450 140,529 7,299,921 rivers, and the sea indicators CO2 emissions in tons as basis: 2008 2017 Reduction in % Commercial Vehicles 401,800 287,885 –28.4 Wastewater 1,133,546 1,307,620 1,268,790 830,923 437,867 GRI Content Index and MAN Truck & Bus 374,600 279,910 –25.3 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles UN Global Compact PE: Power Engineering Communication on MAN Latin America 27,200 7,974 –70.7 Progress Power Engineering 142,800 127,668 –10.6 Atmospheric pollutants¹ MAN Diesel & Turbo 122,800 106,486 –13.3 Independent Practitioner’s Limited Renk 20,000 21,182 5.9 in tons 2015 2016 2017 CV PE
Assurance Report Total 544,600 415,553 –23.7 Sulfur dioxide (SO2) 0.96 0.94 1.00 0.64 0.36 1 Figures rounded up or down, including additional reduction measures and premium for voluntarily limiting Nitrogen oxides (NOX) 325 320 378 247 131 About this report the offsetting of purchased green electricity. Particulates 1.40 1.39 1.36 1.00 0.36 Credits and Volatile organic compounds (VOC) 828 778 792 729 63 additional information 1 As of 2016, non-production sites are no longer included in the reporting framework. CV: Commercial Vehicles PE: Power Engineering 52 MAN GRI Report 2017 Annex GRI CONTENT INDEX AND UN GLOBAL COMPACT COMMUNICATION ON PROGRESS
This report meets the standards set out in the G4 guidelines of the Global Overview Reporting Initiative. It was prepared in accordance with the GRI G4 Core Foreword option. In cases in which all requirements for an indicator were not com- pletely met, the information which was not included is not material to the Portrait MAN Group. This report was submitted to the GRI for the performance of
Our approach the GRI Materiality Disclosures Service. The GRI confirmed the correct positioning of the G4 materiality disclosures [G4-17 through G4-27]. Products
Production G4 indicator Page UNGC Supply chain General Standard Disclosures Strategy and Analysis People G4-1 Statement from the most senior decision-maker 1 Society and integrity Organizational Profile G4-3 Name of the organization MAN SE Annex G4-4 Primary brands, products, and services 3; AR 3, 6/7 Overview of key G4-5 Location of the organization’s headquarters Munich, Germany indicators G4-6 Countries with significant operations 2; AR 8/9 G4-7 Nature of ownership and legal form 4 GRI Content Index and UN Global Compact G4-8 Markets served 3; AR 6/7 Communication on G4-9 Scale of the organization 2; AR 5 Progress G4-10 Employees by employment type, gender and region 36 6
Independent G4-11 Percentage of employees covered by collective bargaining agreements 35 3 Practitioner’s Limited G4-12 Description of the supply chain 27 Assurance Report G4-13 Significant changes during the reporting period 34 G4-14 Implementation of the precautionary principle 5/6; AR 56–64 About this report G4-15 External initiatives that the organization endorses 32, 46 Credits and G4-16 Significant memberships in industry and business associations 47 additional information Identified Material Aspects and Boundaries G4-17 Entities included in the consolidated financial statements 58; AR 90 G4-18 Process for defining the report content 7
AR = Annual Report | UNGC = UN Global Compact 53 MAN GRI Report 2017 Annex – GRI Content Index
Overview G4 indicator Page UNGC G4-19 Material Aspects identified 8 Foreword G4-20 Aspect Boundaries within the organization 8 Portrait G4-21 Aspect Boundaries outside the organization 8 G4-22 Restatemtents of information provided in previous reports 18 Our approach G4-23 Significant changes in the Scope and Aspect Boundaries None Products Stakeholder Engagement G4-24 Stakeholder groups engaged 7, 58 Production G4-25 Identification and selection of stakeholders 47 Supply chain G4-26 Approach to stakeholder engagement and frequency 34, 47 G4-27 Key topics and concerns raised through stakeholder engagement and response 7 People Report Profile Society and integrity G4-28 Reporting period 58 G4-29 Date of most recent previous report July 2017 Annex G4-30 Reporting cycle 58 Overview of key G4-31 Contact point for questions regarding the report 59 indicators G4-32 “In accordance” option with GRI and Content Index chosen 52–55, 58 G4-33 External verification of the report 56–58 GRI Content Index and UN Global Compact Governance Communication on G4-34 Governance structure, incl. committees of the highest governance body 6; AR 18/19, 24 Progress Ethics and Integrity Independent G4-56 Values, principles, standards and norms of behavior 28, 45 10 Practitioner’s Limited Specific Standard Disclosure Assurance Report Environmental Aspect: Materials — Management approach 8, 18, 24 7, 8 About this report G4-EN1 Materials used by weight or volume 24 7, 8 Credits and Aspect: Energy — Management approach 7/8, 18, 20, 24 7, 8, 9 additional information G4-EN3 Energy consumption within the organization 20 7, 8 G4-EN5 Energy intensity 20 8 G4-EN6 Reduction of energy consumption 21, 26 8, 9
AR = Annual Report | UNGC = UN Global Compact 54 MAN GRI Report 2017 Annex – GRI Content Index
Overview G4 indicator Page UNGC G4-EN7 Reductions in energy requirements of products and services 10, 16 8, 9 Foreword Aspect: Emissions — Management approach 7/8, 18, 24 7, 8, 9 Portrait G4-EN15 Direct greenhouse gas emissions (Scope 1) 18, 21 7, 8 G4-EN16 Energy indirect greenhouse gas emissions (Scope 2) 21 7, 8 Our approach G4-EN17 Other indirect greenhouse gas emissions (Scope 3) 23 7, 8 Products G4-EN18 Greenhouse gas emissions intensity 21 8 G4-EN19 Reduction of greenhouse gas emissions 21 8, 9 Production G4-EN21 NOX, SOX and other significant air emissions 26 7, 8 Supply chain Aspect: Effluents and Waste — Management approach 8, 18, 24 8 G4-EN22 Total water discharge by quality and destination 26 8 People G4-EN23 Total weight of waste by type and disposal method 25 8 Society and integrity G4-EN24 Significant Spills 26 8 G4-EN25 Handling of hazardous waste 25 8 Annex Aspect: Products and Services — Management approach 8–12, 14–16 7, 8, 9 Overview of key G4-EN27 Mitigation of environmental impacts of products and services 10/11, 14, 16 7, 8, 9 indicators Aspect: Compliance — Management approach 8, 18 8 G4-EN29 Fines and sanctions for non-compliance with environmental regulations 26 8 GRI Content Index and UN Global Compact Aspect: Transport — Management approach 8, 18, 22–24, 27 8 Communication on G4-EN30 Significant environmental impacts of transport 22/23 8 Progress Labor Practices and Decent Work Independent Aspect: Occupational Health and Safety — Management approach 8, 31, 41–43 1, 6 Practitioner’s Limited G4-LA6 Injuries, occupational diseases, lost days, and work-related fatalities 43 Assurance Report Aspect: Training and Education — Management approach 8, 31, 34, 38 6 G4-LA9 Average hours of training 38 About this report G4-LA10 Programs that support the continued employability of employees 38 Credits and Aspect: Diversity and Equal Opportunity — Management approach 8, 31, 39 1, 6 additional information G4-LA12 Composition of governance bodies and breakdown of employees by aspects of diversity 36/37, 39; AR 17, 30, 150–152 6
AR = Annual Report | UNGC = UN Global Compact 55 MAN GRI Report 2017 Annex – GRI Content Index
Overview G4 indicator Page UNGC
Foreword Product Responsibility Aspect: Customer Health and Safety — Management approach 8/9, 16, 17 Portrait G4-PR1 Percentage of significant product and service categories for which health and safety impacts are 16 assessed Our approach FURTHER G4 INDICATORS Products G4-EC1 Direct economic value created and distributed 4, 48; AR 41, 83 G4-EC2 Financial implications and other risks and opportunities due to climate change 6 7 Production G4-EC3 Coverage of benefit plan obligations 34; AR 117–120 Supply chain G4-EN8 Total water withdrawal by source 26 7, 8 G4-EN31 Environmental protection expenditures and investments 26 7, 8, 9 People G4-EN32 Percentage of new suppliers that were screened using environmental criteria 28/29 8 Society and integrity G4-LA1 New employee hires and employee turnover 36 6 G4-LA14 Percentage of new suppliers that were screened using labor practices criteria 28/29 Annex G4-HR3 Incidents of discrimination and corrective actions taken 35 6 Overview of key G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association may be 28, 32, 35 2, 3 indicators violated or at risk, and measures taken G4-HR5 Operations and suppliers having significant risk for incidents of child labor, and measures taken 28, 32 2, 5 GRI Content Index and G4-HR6 Operations and suppliers having significant risk for incidents of forced or compulsory labor, UN Global Compact 28, 32 2, 4 Communication on and measures taken Progress G4-SO4 Communication and training on anti-corruption 46 10
Independent G4-SO7 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices AR 121/122 Practitioner’s Limited G4-SO8 Fines and sanctions for non-compliance with laws and regulations AR 121/122 Assurance Report G4-PR3 Type of product and service information required by the organization’s procedures for product and service 17 information and labeling, and percentage of significant products and service categories subject to such About this report information requirements
Credits and G4-PR5 Results of surveys measuring customer satisfaction 17 additional information G4-PR9 Significant fines concerning the provision and use of products and services AR 121/122
AR = Annual Report | UNGC = UN Global Compact 56 MAN GRI Report 2017 Annex INDEPENDENT PRACTITIONER’S REPORT ON A LIMITED ASSURANCE ENGAGEMENT ON SUSTAINABILITY INFORMATION¹
To MAN SE, Munich prüfer und vereidigte Buchprüfer“: “BS WP/vBP”) as well as the Standard on Overview Quality Control 1 published by the Institut der Wirtschaftsprüfer (Institute Foreword We have performed a limited assurance engagement on the disclosures of Public Auditors in Germany; IDW): Requirements to quality control for denoted with in the CR-Report 2017 of MAN SE, Munich (hereinafter: audit firms (IDW Qualitätssicherungsstandard 1: Anforderungen an die Portrait “the Company”), for the period from 1 January to 31 December 2017 (here- Qualitätssicherung in der Wirtschaftsprüferpraxis - IDW QS 1) – and accord-
Our approach inafter: “CR-Report”). Our engagement in this context relates solely to the ingly maintains a comprehensive system of quality control including doc- disclosures denoted with the symbol . umented policies and procedures regarding compliance with ethical Products requirements, professional standards and applicable legal and regulatory requirements. Production Responsibilities of the Executive Directors The executive directors of the Company are responsible for the prepara- Supply chain tion of the CR-Report in accordance with the principles stated in the G4 Practitioner’s Responsibility Sustainability Reporting Guidelines of the Global Reporting Initiative Our responsibility is to express a limited assurance conclusion on the People (hereinafter: “GRI-Criteria”) and for the selection of the disclosures to be disclosures denoted with in the CR-Report based on the assurance Society and integrity evaluated. engagement we have performed. This responsibility of Company’s executive directors includes the We conducted our assurance engagement in accordance with the Annex selection and application of appropriate methods of sustainability report- International Standard on Assurance Engagements (ISAE) 3000 (Revised): Overview of key ing as well as making assumptions and estimates related to individual sus- Assurance Engagements other than Audits or Reviews of Historical Finan- indicators tainability disclosures, which are reasonable in the circumstances. Fur- cial Information, issued by the IAASB. This Standard requires that we plan
GRI Content Index and thermore, the executive directors are responsible for such internal control and perform the assurance engagement to allow us to conclude with lim- UN Global Compact as they have considered necessary to enable the preparation of a Report ited assurance that nothing has come to our attention that causes us to Communication on that is free from material misstatement whether due to fraud or error. believe that the disclosures denoted with in the Company’s CR-Report Progress for the period from 1 January to 31 December 2017 has not been prepared, Independent Independence and Quality Control of the Audit Firm in all material aspects, in accordance with the relevant GRI-Criteria. Practitioner’s Limited We have complied with the German professional provisions regarding In a limited assurance engagement the assurance procedures are Assurance Report independence as well as other ethical requirements. less in extent than for a reasonable assurance engagement and therefore a About this report Our audit firm applies the national legal requirements and profes- substantially lower level of assurance is obtained. The assurance proce- sional standards – in particular the Professional Code for German Public dures selected depend on the practitioner’s judgment.
Credits and Auditors and German Chartered Auditors (“Berufssatzung für Wirtschafts- additional information
¹ PricewaterhouseCoopers GmbH has performed a limited assurance engagement on the German version of the CR-Report 2017 of MAN SE, Munich, and issued an independent assurance report in German language, which is authoritative. The following text is a translation of the independent assurance report. 57 MAN GRI Report 2017 Annex – Independent Practitioner’s Limited Assurance Report
Within the scope of our assurance engagement, we performed amongst Assurance Conclusion Overview others the following assurance procedures and further activities: Based on the assurance procedures performed and assurance evidence Foreword obtained, nothing has come to our attention that causes us to believe that Inquiries of personnel involved in the preparation of the CR-Report the disclosures denoted with in the Company’s CR-Report for the Portrait regarding the preparation process, the underlying internal control sys- period 1 January to 31 December 2017 have not been prepared, in all mate-
Our approach tem and selected sustainability information rial aspects, in accordance with the relevant GRI-Criteria.
Products Inspection of additional documents and supportive systems Intended Use of the Assurance Report We issue this report on the basis of the engagement agreed with the Com- Production Identification of the likely risks of material misstatement of the CR- pany. The assurance engagement has been performed for purposes of the Supply chain Report under consideration of the GRI-Criteria Company and the report is solely intended to inform the Company as to the results of the assurance engagement. The report is not intended to People Assessment of sites to obtain insights with regard to effectiveness of provide third parties with support in making (financial) decisions. Our Society and integrity reporting processes and internal systems at site level: responsibility lies solely toward the Company. We do not assume any – MAN Diesel & Turbo SE, Augsburg, Germany responsibility towards third parties. Annex – MAN Diesel & Turbo Schweiz AG, Zürich, Switzerland (webmeeting) Overview of key – MAN Truck & Bus AG, Munich, Germany Munich, 7 June 2018 indicators – MAN Truck & Bus AG, Salzgitter, Germany
GRI Content Index and – MAN Trucks Sp. z o.o., Krakow, Poland (webmeeting) PricewaterhouseCoopers GmbH UN Global Compact Wirtschaftsprüfungsgesellschaft Communication on Analytical evaluation of selected disclosures in the CR-Report Progress Klaus Schuster Hendrik Fink Independent Assessment of the presentation of selected sustainability information Wirtschaftsprüfer Wirtschaftsprüfer Practitioner’s Limited in the CR-Report regarding the sustainability performance (German Public Auditor) (German Public Auditor) Assurance Report
About this report Comparison of selected disclosures with corresponding data in the consolidated financial statements and in the group management
Credits and report additional information 58 MAN GRI Report 2017 Annex ABOUT THIS REPORT
[G4-24] Since 2011, each year we have provided our stakeholders with infor- Report audit Overview mation about our progress in implementing our corporate responsibility We voluntarily submitted our 2017 GRI Report to a comprehensive inde- Foreword (CR) strategy. This 2017 GRI report is aimed at analysts, investors, custom- pendent audit by PricewaterhouseCoopers (PwC), which was conducted in ers, and business partners. It presents relevant management approaches, accordance with the International Standard on Assurance Engagements Portrait measures, indicators, and data related to sustainable business practices (ISAE) 3000 (revised) (, pages 56f.). The focus of the audit was on employee Our approach within the MAN Group. Furthermore, it outlines the ways in which we live and environmental indicators in production operations. The verified con- up to our commitment to the Ten Principles of corporate responsibility tent is marked in the report with a symbol. Products defined by the UN Global Compact. An interactive abridged version of the report is available online. Production Scope [G4-17] The 2017 reporting period is identical with the 2017 fiscal year, Supply chain Report structure which runs from January 1 through December 31. The closing date for con- The structure of the GRI Report is based on the five areas of our CR strat- tributions was May 31, 2018. The next report is due to appear in the first People egy: responsibility for products, responsibility in production, responsibil- half of 2019. Society and integrity ity in the supply chain, responsibility for people, and responsibility for Unless otherwise specified, the facts and figures published in this society and integrity. In each of the five chapters, we discuss the manage- report relate to the entire MAN Group (MAN SE including subsidiaries, but Annex ment approaches taken in the relevant area of action, as well as measures excluding joint ventures, associates, and financial investments). Overview of key initiated and progress made in 2017. In the interests of readability, we have not used the full legal names indicators of MAN SE and its subgroups.
GRI Content Index and Report standard UN Global Compact The report meets the standards of the G4 version of the Global Reporting Communication on Initiative (GRI). It was prepared in accordance with the GRI G4 Core option. Progress MAN’s CR reporting was preceded by a process of materiality analysis Independent which also took stakeholder views into account – as described on , pages Practitioner’s Limited 07 and 08. The GRI Content Index outlines our compliance with the rele- Assurance Report vant GRI indicators (, pages 52ff.) and represents our UN Global Compact About this report Communication on Progress.
Credits and additional information 59 MAN GRI Report 2017 Annex CREDITS AND ADDITIONAL INFORMATION
Overview Credits More information
Foreword Published by MAN SE Portrait Corporate Responsibility CORPORATE RESPONSIBILITY AT MAN Our approach Dachauer Str. 641 2017 MAN CR Report, including abridged version 80995 Munich, Germany MAN Global Corporate Website Products www.corporate.man.eu Production THE MAN GROUP ON THE INTERNET Contact Supply chain Peter Attin MAN Group and its products
People Senior Vice President MAN Global Corporate Website Head of Corporate Responsibility Society and integrity Phone: +49 89 36098-226 SOCIAL MEDIA E-mail: [email protected] Annex MAN Group News
Overview of key Editorial deadline MAN Careers indicators May 31, 2018 MAN Xing GRI Content Index and UN Global Compact Copyright MAN Truck & Bus Facebook Communication on © 2018 MAN SE Progress MAN Diesel & Turbo Facebook
Independent Concept, texts, and layout MAN Latin America Facebook Practitioner’s Limited akzente kommunikation und beratung GmbH, Munich Assurance Report
About this report Translation Angela Teevin-Schweiss Credits and additional information MAN SE Dachauer Straße 641 80995 Munich Germany Phone: +49 89 36098-0 Fax: +49 89 36098-250 www.corporate.man.eu