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MAN GRI Report 2020 MAN GRI Report Driving Responsible Transport 2020 Engineering the Future – since 1758. MAN SE 2 MAN 2020 GRI Report OVERVIEW Overview PAGE 01 PAGE 03 PAGE 06 Foreword FOREWORD PORTRAIT OUR APPROACH Portrait OF THE Our approach MAN GROUP Products Production Supply chain PAGE 12 PAGE 22 PAGE 30 PAGE 36 PAGE 49 People PRODUCTS PRODUCTION SUPPLY CHAIN PEOPLE SOCIETY AND Society and integrity INTEGRITY Annex PAGE 58 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 AND ADDITIONAL INFORMATION 01 MAN 2020 GRI Report Foreword Dear Readers, 2020 was an unprecedented year for all of us, and MAN is no exception. new addition to our electric portfolio is the eTGM distribution truck, Overview The Covid-19 pandemic has turned our lives upside down, both at work which we are now producing in small series and which won the European Foreword and at home, and has resulted in considerable uncertainty and caution in Transport Award for Sustainability in 2020. almost all economic sectors across the globe — also among many of our Electric mobility also plays a key role in local public transport, Portrait customers. Our response to the crisis was swift and flexible. Our production which is why MAN is working intensively with public transportation com- Our approach activities came to a standstill for a period spanning several weeks and could panies and municipal authorities to help push ahead with the switch to only be ramped up again gradually. Capacity utilization levels remained alternative mobility solutions. The series production of the all-electric Products low and we had to resort to short-time working arrangements. All in all, MAN Lion’s City E at MAN’s Polish plant in Starachowice, which started in however, we were able to cushion the economic blow to the Company — October 2020, marks an important milestone in this regard. With its bat- Production also thanks to the comprehensive economic stimulus and aid packages tery electric city buses, MAN is setting standards for a generation of zero- Supply chain provided by policymakers. emission city buses. The pandemic triggered or accelerated developments in a large When it comes to long-haul transportation, however, other solu- People number of areas. Climate debates, for example, moved even further into the tions are required. While the question as to which technologies will prevail Society and integrity public eye in 2020, recently culminating in the European Union’s first-ever in this segment remains unanswered, hydrogen is expected to be one of climate protection law. For us, this means one thing above all else: we will the key fuels of the future. This is why we are working on the development Annex continue to make systematic investments in sustainable and future-proof of both fuel cells and hydrogen combustion engines as an alternative to solutions to drive the current process of mobility and technological change. pure battery electric drives for long distances. We will be testing the first We are devoting particular attention to alternative drives. Battery- few truck prototypes in the course of this year. powered vehicles are a good option for inner-city traffic and for covering Climate protection is a central topic for MAN in-house, too. This is an short distances. These low-noise vehicles generate zero local emissions area in which we have set ourselves ambitious targets: we intend to have and are becoming increasingly cost-effective to run. Our pioneering elec- halved our CO₂ emissions by 2025, with the aim of achieving completely tric eTGE van has already been on the road successfully for two years. One climate-neutral production by 2030. 02 MAN 2020 GRI Report Foreword Acting responsibly is a concept that also extends to our supply chain. Our Overview aim is to be aware of the main sustainability risks in our supply chain at Foreword all times and to address them effectively. The procurement sustainability rating system — which determines the relevance of CSR standards for the Portrait contract award process — has applied throughout the Group since Our approach November 2020. At MAN, we focus on our core competencies and ensure that our Products actions are compatible with the principles of sustainability. This will allow us to continue to play an active role in shaping the challenges that the pro- Production cess of transformation presents, taking into account our commitment to Supply chain global sustainability goals and the principles set out by the United Nations Global Compact. Prepared in accordance with the GRI Standards of the People Global Reporting Initiative and checked by an independent auditing firm, Society and integrity this report presents all of the relevant performance indicators and serves to make our sustainability performance transparent. I hope that you find Annex it informative. Sincerely, Andreas Tostmann Chief Executive Officer of MAN SE 03 MAN 2020 GRI Report Portrait of the MAN Group WE PROVIDE EFFICIENT TRANSPORTATION SOLUTIONS Overview 2020 2020 Foreword Portrait Our approach Products 39,509employees worldwide 12production sites Production in 8 countries Supply chain People Society and integrity Annex €10.8billion sales revenue €11.6billion incoming orders [102-48] MAN SE’s Power Engineering business with Renk AG and MAN Energy Solutions SE (formerly known as MAN Diesel & Turbo) was sold to a Group com- pany of Volks wagen AG effective December 31, 2018, and is no longer included in this report. The data and key figures contained in this report are shown excluding 2divisions: the discontinued operations. MAN Truck & Bus MAN Latin America €–631million operating loss For more information: www.corporate.man.eu 04 MAN 2020 GRI Report Portrait of the MAN Group The MAN Group Overview The MAN Group is one of Europe’s leading players in the commercial vehi- increase in its enterprise value. As well as a systematic customer focus, Foreword cle industry. It aims to offer customers innovative transportation solu- technological leadership and the continuous expansion of the after-sales tions and achieve both profitable international growth and a sustainable business are decisive factors in the MAN Group’s success. Portrait Our approach The divisions Products Production MAN Truck & Bus MAN Latin America Supply chain MAN Truck & Bus is one of the leading manufacturers of commercial vehicles in Europe MAN Latin America has been one of the largest truck and bus manufacturers in Latin Ame- People and has production facilities in three European countries, as well as in Russia, South Africa, rica for more than 35 years. The company produces trucks and buses in Resende, Brazil and Turkey. The product portfolio includes vans, trucks, buses, diesel and gas engines, as and in Querétaro, Mexico. At its Resende site, the company uses a pioneering production Society and integrity well as services spanning all areas of passenger and freight transportation. This makes system featuring seven suppliers that share responsibility with MAN Latin America for Annex MAN Truck & Bus a full-range provider of commercial vehicles weighing from three assembling the vehicles on the plant premises. through 44 tons for all areas of application and special-purpose vehicles with a gross train weight of up to 250 tons. 2020 sales revenue 2020 sales revenue €9,659 million €1,235 million 05 MAN 2020 GRI Report Portrait of the MAN Group Long-term growth strategy MAN as part of TRATON Overview Technology leadership is a key factor in the success of MAN. We develop MAN Truck & Bus, MAN Latin America, and Scania AB, Södertälje, Sweden Foreword innovative products and solutions that meet the needs of customers and (Scania) collaborate closely within the TRATON GROUP. The aim is to markets — while at the same time focusing on reducing fuel consumption develop TRATON, together with its brands, to create a Global Champion, Portrait and emissions and on generating energy efficiently, reliably, and ecologi- while maintaining the separate identities and full operational responsi- Our approach cally. In addition, MAN is moving to leverage the opportunities of digitali- bility of the individual brands. Given the long product life cycles in the zation and to unlock new potential through new business models based commercial vehicle business, the synergy potential created by the coopera- Products on innovative mobility solutions. Given the major challenges we are cur- tion will be exploited over a longer period of time. In the long run, the rently facing, we are directing our efforts toward the development of new entire powertrain is relevant for joint development as the main driver of a Production products and services with a clear focus on issues of the future: alternative truck’s cost. Further synergy potential will also be exploited by bundling Supply chain drives, digitalization, and automated driving. purchasing activities. People Economic environment Capital expenditures Society and integrity Unit sales fell by 17% to 118,115 (2019: 142,775) vehicles due to the challeng- In the year under review, the MAN Group incurred capital expenditures ing market environment caused by the Covid-19 pandemic. As a result, the totaling €443 million, as against €630 million in the previous year. Given Annex sales revenue generated by the MAN Group dropped by 14% year-on-year the financial strain and considerable uncertainty sparked by the Covid-19 to €10.8 billion (2019: €12.7 billion). The downward trend was attributable pandemic, as well as an economic situation that was tense overall, the primarily to the New Vehicles business in line with the global market MAN Group took a very close look at all investment projects in 2020. slump. The After Sales business, coupled with better performance in the Investments in property, plant, and equipment at MAN Truck & van business and in the external engines business, helped offset the drop Bus in 2020 focused on the successful ramp-up of production for the latest in sales revenue.
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