MAN GRI Report

Corporate Responsibility at MAN 2018 Engineering the Future – since 1758. MAN SE 2 MAN 2018 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 23 PAGE 32 PAGE 36 PAGE 50 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 2018 GRI Report Foreword

Dear Readers,

Be it alternative drives, digitalization, or automated driving: the rapid needs of heavy goods vehicles. MAN is working hand-in-hand with policy- Overview changes in the mobility landscape are opening up new business opportu- makers, associations, and environmental organizations to create the right Foreword nities for MAN that also serve as our answers to global challenges. Our conditions for the successful transformation of the transportation sector innovative strength – which we are using to take responsibility along our so that the climate targets set out in the Paris Agreement can be met. Portrait entire value chain – will be a key factor in our success. Climate protection is another aspect that plays a central role in our

Our approach In close collaboration with cities and logistics partners, we are production processes. As part of MAN’s Climate Strategy, we set ourselves bringing electric and gas-powered commercial vehicles to the road in a the goal of reducing CO₂ emissions at our sites by 25% in absolute terms, Products quest to turn low-pollutant urban mobility with as close to zero local compared with the baseline of 2008, by 2020. In 2018, we achieved our emissions as possible into reality. Our very first electric van, the eTGE, has goal ahead of schedule with a 26.0% reduction. MAN will continue to Production been in series production since 2018. In 2023, we will also launch the series implement its action plans for energy and CO₂ reduction at the individual Supply chain production of eTrucks for urban distribution transportation. We are sites. These include, for example, the increased use of renewable energies already testing these vehicles in day-to-day operations: the handover of and the introduction of new energy supply concepts. People the first set of MAN eTrucks to member companies of the Austrian Coun- Taking social and ecological responsibility is an integral part of Society and integrity cil for Sustainable Logistics in September 2018 saw us put a development MAN’s corporate culture. Our employees are involved in charitable proj- partnership that is the only one of its kind in the commercial vehicle ects on a voluntary basis, including in cooperation with SOS Children’s Vil- Annex sector into practice. We are also focusing increasingly on alternative drive lages and the Bavarian nature conservation association (Bund Natur- systems for our buses: with the new Lion’s City G, MAN has developed a schutz). This sort of commitment sends out a strong signal that motivates vehicle that is low in emissions when run on natural gas and carbon-neu- other colleagues to take part: the number of hours that our employees tral when fueled with biogas. We are also planning to start the series pro- spent on voluntary work quadrupled compared with the previous year. duction of fully electric city buses in 2020. Another aspect that sends out an important signal, both in-house The major challenge facing us over the coming decade will be to and to the world outside of MAN, is our commitment to a diverse work- meet the objectives set out in the CO₂ regulations for heavy goods vehi- force: MAN sees plurality and inclusion as key prerequisites for its innova- cles, slashing CO₂ emissions by 15% up to 2025 and by 30% up to 2030. tive strength. From family-friendly working conditions to mixed-age Although MAN is on the right track with its electrification strategy, there is teams – this is a topic that really speaks to our employees. We launched a currently not a single EU member state that has charging infrastructure corresponding strategy process in January 2019 that will be rolled out for electric trucks or hydrogen filling stations that are tailored to suit the throughout the Group over the next few years. 02 MAN 2018 GRI Report Foreword

MAN also stepped up its refugee integration activities further in 2018, Overview helping 99 migrants gain a foothold in the working world by offering Foreword them initial vocational training, apprenticeships, and internships. The city of Munich awarded us the Prize for Civic Engagement 2018 in recogni- Portrait tion of our efforts.

Our approach Our current CR strategy is MAN’s response to the global challenges which have material significance for the Group. This report makes our Products contribution transparent and presents both the progress made and the challenges that lie ahead. Prepared in accordance with the standards of Production the Global Reporting Initiative and checked by an independent auditing Supply chain firm, it presents performance indicators and data that are relevant to sus- tainable business practices. And it outlines the ways in which we live up to People our commitment to the Ten Principles of corporate responsibility defined Society and integrity by the UN Global Compact.

Annex We hope that you will find this report informative.

Sincerely,

Joachim Drees Chief Executive Officer of MAN SE 03 MAN 2018 GRI Report Portrait of the MAN Group WE PROVIDE EFFICIENT TRANSPORTATION SOLUTIONS

Overview 2018 2018

Foreword

Portrait

Our approach

Products 38,430employees worldwide1 30production sites Production in 14 countries

Supply chain

People

Society and integrity

Annex €12.1billion sales revenue1

€13.9billion order intake1

1 The key performance indicators shown exclude the discontinued operations. 2 MAN SE’s Power Engineering business with Renk AG and 4divisions: MAN Energy Solutions SE (formerly known as MAN Diesel & Turbo) was sold to MAN Truck & Bus a Group company of Volkswagen AG effective December 31, 2018. MAN Latin America MAN Energy Solutions2 Renk2 €332million operating profit1 For more information: www.corporate.man.eu 04 MAN 2018 GRI Report Portrait of the MAN Group

The MAN Group South Africa, and Turkey. MAN Latin America produces trucks and buses Overview The MAN Group is one of Europe’s leading players in the commercial vehi- in Brazil and Mexico. MAN SE’s Power Engineering business (Renk and Foreword cle industry. As a producer of vans, trucks, buses, diesel and gas engines, as MAN Energy Solutions) was sold to a subsidiary of Volkswagen AG at the well as services spanning all areas of passenger and freight transportation, end of 2018 at the instructions of TRATON SE. Portrait we hold leading market positions in all of our divisions. MAN Truck & Bus You can find further information on the MAN Group’s business

Our approach has production facilities in three European countries, as well as in Russia, activities on pages 25ff. of the 2018 Annual Report.

Products

Production The divisions

Supply chain Commercial Vehicles Power Engineering People MAN Truck & Bus MAN Latin America MAN Energy Solutions Renk (76%) Society and integrity

Annex is one of the leading manufacturers of com- is one of the largest truck manufacturers in is one of the world’s leading suppliers of is a globally recognized manufacturer of mercial vehicles in Europe. The product Brazil. Three of the five best-selling truck large-bore diesel and gas-powered engines high-quality special gear units, propulsion portfolio includes vans, trucks, buses, diesel models in Brazil are made by MAN Latin and also one of the leading suppliers of tur- components, and testing systems. and gas engines, as well as services span- America. The company is a supplier of bomachinery on the global market. The new ning all areas of passenger and freight commercial vehicles and bus chassis for name for MAN Diesel & Turbo, MAN Energy transportation. This makes MAN Truck & Bus growth markets, marketed under both the Solutions, reflects the increased strategic a full-range provider of commercial vehicles Volkswagen Caminhões e Ônibus and MAN focus on sustainable technologies and solu- weighing from three through 44 t for all brands. tions, and the expansion of the portfolio to areas of application and special-purpose include hybrid, storage, and digital service vehicles with a gross train weight of up to technologies. 250 t.

2018 sales revenue €10,815 million €1,421 million €3,128 million €502 million 05 MAN 2018 GRI Report Portrait of the MAN Group

Long-term growth strategy vehicles were ordered from MAN in 2018, 22% more than in the previous Overview Technology leadership is a key factor in the success of MAN. We develop year. MAN Latin America increased its order intake in units by 33%, with Foreword innovative products and solutions that meet the needs of customers and MAN Truck & Bus achieving an increase of 20%. markets – while at the same time focusing on reducing fuel consumption Excluding discontinued operations, the MAN Group’s operating Portrait and emissions and on generating energy efficiently, reliably, and ecologi- return on sales dipped from 3.2% to 2.7%. MAN does not take extensive

Our approach cally. In addition, MAN is moving to leverage the opportunities of digitali- measures to optimize its taxes. Further information on our financial per- zation and to unlock new potential through new business models based formance is available in our 2018 Annual Report. Products on innovative mobility solutions. Given the major challenges we are cur- rently facing, we are directing our efforts toward the development of new Production Volkswagen AG’s stake in MAN SE products and services with a clear focus on issues of the future: alternative On April 26, 2013, MAN SE, as the controlled company, entered into a dom- Supply chain drives, digitalization, and automated driving. ination and profit and loss transfer agreement with Truck & Bus GmbH (now TRATON SE), a wholly owned subsidiary of Volkswagen AG, as the People Economic environment controlling company. On December 31, 2018, TRATON SE held 87.04% of Society and integrity Although the global economy and worldwide trade expanded again in the MAN SE’s voting rights and 86.87% of its share capital. year under review, trade conflicts as well as the unpredictable outcome of MAN sold its Power Engineering business to a subsidiary of Volks­ Annex Brexit were among the main factors causing uncertainty. Against this wagen AG effective the end of December 31, 2018. The Power Engineering backdrop, the MAN Group’s business recorded encouraging growth. At business consisted of the two former divisions: MAN Energy Solutions and €12,104 million, the sales revenue generated by the MAN Group in 2018, Renk. The transaction closed effective the end of December 31, 2018. Con- excluding discontinued operations, was up by 9.2% on the previous year trol of the Power Engineering business passed to the buyer as of that date. (2017: €11,087 million). Our operating profit came to €332 million, down slightly (by €26 million) in a year-on-year comparison. We paid out guar- Capital expenditures anteed dividends to our shareholders of €5.10 per share in 2018. In the 2018 fiscal year, and excluding discontinued operations, the MAN The European truck market achieved another slight increase from Group incurred capital expenditures totaling €683 million, as against an already high level in 2018. The Brazilian economy returned slight €661 million in the previous year. Investments in property, plant, and growth for the second year in a row, overcoming the previous recession. equipment increased, while investments in intangible assets fell. In view This also increased the demand for trucks in Brazil, which was up signifi- of the challenging economic environment, we are reviewing planned capi- cantly on the weak prior-year figure. The Russian market deteriorated in tal expenditures with particular scrutiny and prioritizing them systemati- the course of the year, reporting only minimal growth as against the previ- cally. We are deliberately retaining the necessary capital expenditures that ous year overall. All in all, the demand for buses in the markets that are will lead to long-term growth and have the potential to improve our oper- relevant to MAN was slightly higher than a year earlier. A total of 146,268 ational efficiency. 06 MAN 2018 GRI Report OUR APPROACH

MAN’s future performance depends on understanding global challenges and identifying the Overview opportunities and risks with regard not only to sustainable development, but also to our Foreword commercial success. We make a conscious effort to address what is expected of us by our Portrait customers, policymakers, and society at large and offer specific answers. In doing so, we

Our approach always put the human aspect at the center of our endeavors.

Products

Production

Supply chain material significance for the Group. It allows us to identify the risks and People CR Strategy 2025+ opportunities arising from these challenges at an early stage and react Society and integrity Corporate responsibility (CR) has been an integral part of MAN’s corporate accordingly. We take responsibility along our entire value chain, focusing strategy since 2010. And our CR Strategy 2025+, which we updated in the on five fields of action: Annex year under review, is MAN’s response to the global challenges which have

RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY FOR PRODUCTS IN PRODUCTION IN THE SUPPLY FOR PEOPLE FOR SOCIETY CHAIN

, FROM PAGE 12 , FROM PAGE 23 , FROM PAGE 32 , FROM PAGE 36 , FROM PAGE 50 07 MAN 2018 GRI Report Our approach

MAN as part of society Materiality analysis Overview MAN makes its contribution to achieving the Sustainable Development Foreword Goals (SDGs) adopted by the United Nations in 2015, both through its core [102-43, 102-46, 102-49] MAN performed a new materiality analysis in 2018, business and as part of its social commitment. The following chapters updating our priority CR topics with the help of internal and external Portrait showcase various measures that relate directly to the individual SDGs. stakeholders. We define our objectives based on the current overall eco-

Our approach nomic, legal, and social environment, without losing sight of overarching CR management global challenges. We are committed to adopting an outside-in perspec- Products At MAN, corporate responsibility is a top managerial function. The Chief tive and a proactive stance. Human Resources Officer and Arbeitsdirektor (Executive Board member Production responsible for employee relations) is ultimately responsible for CR at We have taken care to ensure that the priority CR topics tie in with our cor- Supply chain MAN. Reporting to him is MAN SE’s Corporate Responsibility function, porate strategy and the functional strategies derived from it. which is responsible for implementing MAN’s CR strategy. The Corporate People Responsibility function serves as the central point of contact for all CR Society and integrity issues in the Company. It also coordinates the CR Council, whose members include managers from the areas of Research and Development, Produc- Annex tion, Procurement, Corporate and Product Strategy, Human Resources, and Public Affairs within the subgroups, as well as the Group Works Coun- cil. The Council is responsible for advising on how to incorporate CR into operational processes and on the further development of the CR strategy, as well as for conducting systematic stakeholder dialog. The CR Council met four times in the fiscal year under review. MAN also steers its CR activ- ities through integrated management systems, as described in the Pro- duction (, page 23) and People (, page 36) chapters of this report. 08 MAN 2018 GRI Report Our approach

[102-40, 102-42, 102-43, 102-44, 102-46] 2018 materiality analysis – the process Overview

Foreword We started by defining the challenges relevant to MAN (= fields of action) In early 2018, we organized a focus workshop to allow our external Portrait internally, covering all stages of the value chain and based on the Sus- stakeholders to evaluate the key topics we had already prioritized inter- tainable Development Goals (SDGs), as well as global challenges and nally. The workshop participants included not only customers and suppli- Our approach stakeholder expectations. The experts involved already put forth propos- ers, but also academics and representatives of major companies, munici- Products als for specific implementation measures – assigned to the individual pal authorities, consultancy firms, and well-known NGOs. fields of action – at this stage. One of the key calls made by the stakeholders involved was that MAN Production focus more on responsibility within the supply chain.

Supply chain

People

Society and integrity

Annex Prioritization Assessment Finalization Longlist of by the by external of the key key challenges MAN CR Council stakeholders topics

The MAN CR Council, which includes representatives from all areas, then Based on the internal and external evaluations, we then proceeded to embarked on an initial prioritization process based on two decisive crite- finalize the CR Strategy 2025+. The next step involved aligning the 18 ria: significance for MAN’s business (opportunities/risks) and significance priority topics – including the specific implementation measures that had from a stakeholder perspective. been proposed – with the functional strategy initiatives derived from the Future Lion corporate strategy. This ensures that the priority CR topics are an integral part of MAN’s corporate strategy. 09 MAN 2018 GRI Report Our approach

[102-44, 102-47, 102-49] Key topics Overview

Foreword RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY Portrait FOR PRODUCTS IN PRODUCTION IN THE SUPPLY FOR PEOPLE FOR SOCIETY CHAIN Our approach

Products

Production

Supply chain

People Reducing green- Reducing green- Relevance of issuing Holistic health Exemplary com­ Society and integrity house gas emissions house gas emissions CSR standards management pliance and risk over the product life from production and management Annex cycle logistics Responsible handling Needs-based voca- of conflict minerals tional training that is Open stakeholder Reducing pollutant Reducing pollutant fit for the future dialog emissions emissions Checking human and employee rights in Working world of the Constructive dialog Improving road safety Adapting to climate the supply chain future – designing with policymakers change new forms of work based on facts

Sustainable mobility Record of CO2 emis- services sions in the supply Future-proof talent chain management 10 MAN 2018 GRI Report Our approach

The challenge of climate change strengthening ties to customers and suppliers through joint efforts to Overview cut CO₂ emissions Foreword As a global transportation and energy company, MAN must provide increasing competitiveness through greater immunity to energy price answers and solutions to global climate change. Specifically, the following fluctuations, resulting from increased reliance on internal energy gen- Portrait climate-related risks and opportunities apply to one or more of MAN’s eration and renewables

Our approach subgroups: regulatory risks, particularly with regard to CO₂ limits for Information on the general risk management system of the MAN Group Products commercial vehicles, possible CO₂ taxes, or emissions trading in the can be found in MAN’s 2018 Annual Report, pages 45ff. Risks resulting logistics sector from climate change are also evaluated as part of MAN’s risk management Production extreme weather events, such as severe storms, flooding, hail, or heavy system. Supply chain snowfall, which could interrupt production or affect suppliers a risk analysis and climate change simulation focusing on the area of People MAN’s Climate Strategy production pointed toward risk potential resulting from periods of MAN aims to make a significant contribution to reducing CO₂ while Society and integrity extreme heat that could have an impact on our employees exploiting business opportunities. We are systematically pursuing MAN’s reputation risk – because the use of our products generates green- Climate Strategy, which was adopted back in 2011. We actively involve our Annex house gas emissions and MAN can only achieve long-term market suc- employees in this process and identify approaches covering all aspects of cess if the Company invests in energy-efficient and low-carbon tech- the value chain. The focus is on reducing CO₂ emissions in production. At nologies the same time, we aim to offer our customers an efficient portfolio of products and services. At the same time, the consistent continuation of the European climate As part of our Climate Strategy, we set ourselves the goal of reduc- protection policy and the gradual implementation of similar policies in ing CO₂ emissions at our sites by 25% in absolute terms, compared with the BRIC countries also yield new growth opportunities for MAN. These the baseline year, by 2020 (, page 26). In 2018, we achieved our goal ahead include: of schedule with a 26.0% reduction in CO₂ emissions. We aim to continue increasing market share through early compliance with regulatory with the remaining activities and measures and maintain the target level requirements between now and 2020. 11 MAN 2018 GRI Report Our approach

In order to achieve the CO₂ target in production, MAN Truck & Bus adopted The aim is to incorporate climate and environmental protection, as well as Overview a CO₂ reduction plan based on five pillars: energy efficiency, into all relevant processes and decisions within the Foreword Company. This will allow us to ensure the future viability of the Company Energy efficiency: increasing energy efficiency through measures and our products while making a contribution to the sustainable develop- Portrait relating to building insulation, production processes, and the pur- ment of society. As well as introducing the energy management system at

Our approach chase of energy-efficient products and services MAN Truck & Bus, we are currently working on the further development of MAN’s Climate Strategy looking ahead to the year 2030. Products Renewable energy: using renewable energy where it makes sense to do so is an integral component of our decision-making processes Production

Supply chain Internal energy generation: immunity to fluctuations in energy prices and commodity imports by ensuring efficient and environmen- People tally friendly energy supplies using combined heat and power plants Society and integrity (CHPs)

Annex 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 bat- tery systems or power-to-heat pumps 12 MAN 2018 GRI Report RESPONSIBILITY FOR PRODUCTS

By developing safe and efficient transportation and energy solutions, we aim to reconcile Overview the greatest possible economic benefits for our customers with aspects relating to Foreword environmental and climate protection. We take a holistic view of our product Portrait responsibility, looking at the entire product life cycle – from raw materials extraction

Our approach through disposal.

Products

„„Product responsibility

Efficient and environmentally friendly products and services

Energy supply and PRODUCT RESPONSIBILITY remanufacturing

Intelligent mobility For MAN, product responsibility means looking at the environmental ments of the Greenhouse Gas Protocol “Product Accounting and Report- impact of our products over their entire life cycle and using forward-look- ing Standard.” The benchmark products for which calculations have been

Product safety ing product development to reduce this impact. performed include not only a dual-fuel engine, but also a performance- MAN Truck & Bus, for example, performs Life Cycle Assessments enhancing system (turbocharger) and a selective catalytic reduction (SCR) Production (LCAs) on typical long-haul trucks taking various drive/fuel combinations system. into account, as well as conducting further investigations. The life cycle We also perform LCAs which take into account additional environ- Supply chain phases included in these analyses range from production and use through mental impact categories. In 2016, MAN Energy Solutions went on to cal- People the product’s end-of-life phase (recycling), i.e., span the product’s entire culate the PCF for a transmission compressor. life cycle. Society and integrity To identify the potential for reducing the life cycle CO₂ emissions

Annex of our products, we calculate the Product Carbon Footprint (PCF) for selected product groups of MAN Energy Solutions in line with the require- 13 MAN 2018 GRI Report EFFICIENT AND ENVIRONMENTALLY FRIENDLY PRODUCTS AND SERVICES

We are committed to continuously improving the efficiency of our prod- With its aerodynamically optimized design, the NEOPLAN Skyliner dou- Overview ucts. After all, in most cases our customers base their decision to buy a ble-decker coach returns fuel consumption of less than 30 l/100 km – a Foreword product on the total cost of ownership. In the freight transportation sec- saving of approximately 5% in highway driving at a constant speed of 100 tor, fuel costs account for approximately one-third of this sum, which is km/h. This has benefits for the environment as well, with CO₂ emissions of Portrait why the quest for greater efficiency and low emissions is a key technology just 12 g/passenger kilometer when operating at full passenger capacity.

Our approach driver. In pursuit of technology leadership, MAN focuses its research and The new MAN Lion’s City sets the standard for an economical and development activities not only on developing new products and enhanc- environmentally friendly city bus. The optional MAN EfficientHybrid in Products ing existing ones but also on the new MAN Lion’s City helps to reduce fuel consumption. The system

Product responsibility reducing fuel consumption and emissions, recuperates and stores braking energy to operate the vehicle electrical sys- alternative drive concepts, and „„Efficient and alternative fuels. environmentally friendly products and services We have also made a commitment to offering our customers an efficient Reducing emissions Energy supply and product portfolio as part of MAN’s Climate Strategy (,Climate Strategy, remanufacturing page 10). For the purposes of a study conducted by the ACEA (European Automobile

Intelligent mobility Manufacturers’ Association), MAN calculated the reduction of CO2 emis- sions in commercial vehicles from 1994 through 2016. This involved com- Efficient diesel engines Product safety paring semitrailer tractors from different eras as they drove three times on a Ever since Rudolf Diesel developed the diesel engine in the late 19th cen- 360-kilometer route accompanied by the technical inspection authority TÜV Production tury together with engineers at Maschinenfabrik Augsburg (a forerunner Süd. The result shows a 31.5% reduction in fuel consumption and, as a

of MAN), we have worked continuously to improve the efficiency and per- result, in CO2 emissions in the 1994–2016 period. Supply chain formance of this internal combustion engine. And our hard work has paid People off: today, economical and efficient transportation and energy solutions One of MAN’s central objectives is to make transportation more sustainable, from MAN are in operation all over the world. which is why we are working at full tilt on developing alternative drive sys- Society and integrity Examples include trucks from the highly efficient TGX Efficient- tems for buses and trucks. The CO2 limits being imposed on commercial Annex Line, now into its third generation, which incorporates a range of fuel-sav- vehicles at European level are a step that we explicitly welcome – but only if ing technologies aimed at further reducing the total cost of ownership the limits can actually be achieved, both in technological terms and from a and CO₂ emissions. A report by the TÜV technical inspection authority cost-effectiveness perspective. confirms that the third generation of the truck consumes 6.35% less fuel than its predecessor. 14 MAN 2018 GRI Report Efficient and environmentally friendly products and services

tem, among other things. The stop-start function results in complete When operated on special biogas, the MAN Lion’s City GL CNG natural gas- Overview engine shutdown at standstill – ensuring entirely emission-free operation powered city bus is virtually carbon-neutral. Gas-powered buses accounted Foreword at bus stops, for example. for around one in five of all MAN city buses sold during the year under In addition to the D26 and D38 engines from the Euro 6c engine review. MAN Truck & Bus is the leading European supplier of gas buses, Portrait generation, which was unveiled for the first time back in 2016, the focus is with a current market share of around 30%.

Our approach on the new D08 generation, which was launched in 2017. Exhaust gas aftertreatment based exclusively on selective catalytic reduction (SCR) Shipping Products technology is one of the main distinguishing features of this latest genera- With its dual-fuel engines, which are capable of operating on both gaseous

Product responsibility tion. and liquid fuels, MAN Energy Solutions offers a low-carbon propulsion solution for ships that combines energy efficiency with flexibility. As well „„Efficient and as liquefied natural gas (LNG), MAN Energy Solutions also offers engines environmentally friendly Low-pollutant natural gas engines capable of running on methanol, ethanol, or liquefied petroleum gas products and services As a clean fuel, natural gas (CNG) plays a key role in our product portfolio. (LPG). Energy supply and As well as providing low-emission propulsion for buses, trucks, and ships, In particular, retrofitting measures to enable LNG operation reduce remanufacturing natural gas is also ideally suited for use in the power generation industry. shipping emissions considerably. By providing its customers with the Intelligent mobility technology required for the retrofitting of their existing fleets, MAN City buses Energy Solutions is aiming to spark a maritime energy revolution. In 2017,

Product safety CNG buses have an important role to play as we move toward achieving MAN Energy Solutions successfully completed the world’s first conversion lower emissions in our cities, since they produce virtually no particulate of a container ship to dual-fuel operation. To provide an incentive for the Production or nitrogen oxide emissions and already enable virtually CO₂-neutral retrofitting of further container ships, the company promised to offer dis- operation thanks to the use of biogas or synthetic natural gas (power-to- counts totaling €2 million for ten additional LNG retrofits at the interna- Supply chain gas process). As a result, CNG buses will remain part of our portfolio for tional Our Ocean 2017 conference organized by the European Commis- People the foreseeable future. At the 2018 International Motor Show (IAA) for sion. commercial vehicles, MAN Truck & Bus unveiled the new E18 engine for Society and integrity use in city buses. The new engine provides maximum cost effectiveness

Annex and minimum environmental impact, especially when combined with the MAN EfficientHybrid module. 15 MAN 2018 GRI Report Efficient and environmentally friendly products and services

eTGE Overview 2018 saw MAN launch its first series-produced electric vehicle, the eTGE. Foreword The maritime energy revolution The fully electric van allows MAN to take another step forward in the direc- tion of zero-emission metropolitan areas. Production started at the MAN Portrait Inspired by the success of the energy transition in the electricity market, plant in Września back in July 2018. The vehicle celebrated its world pre- Our approach MAN Energy Solutions has been committed to the idea of a “maritime energy miere at the 2018 IAA Commercial Vehicles in Hanover. With a range of revolution” since 2016. The concept focuses on more stringent global emis- around 160 kilometers and a payload of between 1 and 1.75 t, depending on Products sions regulations in shipping: switching to LNG as marine fuel allows harmful the type approval, the electric van is ideally equipped for last mile logis- Product responsibility nitrogen oxide and sulfur emissions to be almost completely eliminated and tics. CO2 emissions to be significantly reduced. In a second step, the production „„Efficient and of synthetic LNG from renewable energies also allows CO2 emissions to be eTrucks environmentally friendly MAN started testing eTrucks in practice in 2018. Nine partner companies products and services completely eliminated. MAN Energy Solutions advocates a united approach involving national governments, the International Maritime Organization (IMO) of the Austrian Council for Sustainable Logistics (CNL) are putting the elec-

Energy supply and as the global regulator, and the global shipping industry. tric trucks through their paces in day-to-day logistics operations for a remanufacturing period spanning several months. With the official handover of the eTrucks Intelligent mobility in September 2018, MAN Truck & Bus set another milestone on the road to the electrification of urban distribution transportation, where freedom

Product safety from emissions and reduced noise pollution are working their way up the Electricity – the climate-friendly drive technology agenda. The eTruck Development and Testing Program, involving selected Production customers, is part of MAN Truck & Bus’s electric mobility roadmap for With zero pollutant emissions from fuel combustion and low noise, plus a inner-city transportation solutions, which will be part of its range of prod- Supply chain better carbon footprint with the right electricity mix, electricity is set to be ucts from 2023. People the drive technology of the future – at least around town and on shorter The MAN TGM-based test vehicles have been customized to suit journeys. We are preparing for the series production of purely electric city customer needs and are designed to facilitate testing under realistic con- Society and integrity buses and trucks. This is MAN’s way of forging ahead with efforts to pro- ditions. They are used to deliver goods such as beverages, food, or vehicle

Annex mote electric mobility in commercial vehicles. Our economically robust parts – all the while producing no emissions locally and making virtually electric mobility solutions are being developed in close collaboration with no noise. MAN will incorporate the experience it acquires together with cities and logistics partners. the CNL partner companies into the further series development of electric trucks. The production of the very first small series is scheduled to com- mence soon after the practical tests have been completed. 16 MAN 2018 GRI Report Efficient and environmentally friendly products and services

MAN had already presented a fully electric eTruck solo distributor chassis Electric buses Overview with a swap body frame and a 6x2 axle configuration at the 2018 IAA. The MAN’s solo and articulated buses will also be available with battery electric Foreword 26-ton truck based on the MAN TGM has a range of up to 200 km using drive systems: in 2020, a purely electric demo fleet that is close to series batteries that can be built in under the cab and along the side of the frame. production will be tested in practice at selected customers’ premises, with Portrait Designed to handle conventional city logistics tasks, the vehicle is suitable series production set to start after the testing process.

Our approach for a wide variety of different body applications, from dry freight carrying To begin with, a demo fleet will be tested under everyday condi- or refrigerated box vans through refuse collector units. The additional tions involving several public transportation companies. Our close collab- Products drive systems needed for such applications are also electric. oration with public transportation companies as part of our cooperation

Product responsibility projects has revealed a desired range of up to 200 km a day under realistic operating conditions. We are developing our concepts accordingly. „„Efficient and We are working with several cities – including Munich and Ham- environmentally friendly burg – in a quest to press ahead with the development of line-service products and services Electric mobility: the ideal solution for inner-city traffic buses powered by alternative drives. One of the aims of this collaboration

Energy supply and Battery technology is a decisive factor in electric mobility, especially in com- is to develop a financially optimized, zero-emission concept for electric remanufacturing mercial vehicles. Although the development of this technology is making mobility. Intelligent mobility rapid progress, size, weight, and capacity still determine the extent to which it can be used. This is why electric drive technology makes particular sense Consulting for alternative drives

Product safety in modern inner-city traffic, especially in public transportation. First, there is a As we move from “low-emission” to “no-emission” solutions, public trans- general push in this segment toward increasingly low-noise and emission- portation companies and fleet operators are faced with various challenges Production free drive technologies. Second, the inner-city environment also offers the extending beyond the actual vehicle. In order to provide them with the best conditions for corresponding charging infrastructure. Driving conditions best possible support in this regard, MAN Truck & Bus has set up MAN Supply chain in the city, e.g., frequently alternating acceleration and braking phases, also Transport Solutions, a specialized consultancy team for individual and People allow energy recovery systems to be used in a particularly efficient manner. highly economical transportation solutions. In addition to technical ques- One key factor influencing the range is the heating/air conditioning of the tions about the vehicle, this team also advises customers on questions Society and integrity vehicle, depending on the area in which it is to be used. Public transportation relating to energy requirements, the appropriate infrastructure, mainte- Annex companies and freight forwarders should be aware that switching to electric nance concepts, and optimum fleet design. buses or trucks requires changes to be made to the depot’s infrastructure At the moment, the main challenge we have identified relates to – and the establishment of appropriate infrastructure at suitable points along the sufficient availability of energy on site and the necessary infrastruc- the route or at the destination in cases involving interregional transportation. ture. MAN Transport Solutions maintains close contact with interested customers so that depots and workshops can also be prepared accordingly. We expect the electrification of the new vehicle fleet to make a significant 17 MAN 2018 GRI Report Efficient and environmentally friendly products and services

contribution to achieving the climate targets that have been set. This will, Overview however, require the supply of electricity generated using renewable Foreword sources.

Portrait

Our approach

Products Charging technology standardization

Product responsibility MAN sees charging interface standardization as a key challenge which still needs to be resolved. Standardization is an essential requirement for ensur- „„ Efficient and ing flexibility, interoperability, and a stable planning framework for city bus environmentally friendly products and services operators, and for the successful introduction of zero-emission drive tech- nology in urban transportation. With this in mind, MAN is taking part in the

Energy supply and public-funded eBusCS (Electric Bus Charging System) project, whose spon- remanufacturing sors include the German Federal Ministry for Economic Affairs and Energy. Intelligent mobility For the manufacturers, the main standardization issues to be tackled include vehicle-to-grid communication as described in ISO 15118, the positioning of

Product safety automated charging systems, and the positioning of the charging inlet on the vehicle. Production MAN Truck & Bus has been a member of the Charging Interface Initiative Supply chain since 2017. The aim of the association is to establish the Combined Charg- People ing System (CCS) as the standard for charging all battery electric vehicles.

Society and integrity

Annex 18 MAN 2018 GRI Report ENERGY SUPPLY AND REMANUFACTURING

Overview Aftertreatment systems Gas storage

Foreword MAN Energy Solutions offers its customers exhaust aftertreatment sys- In addition to dual-fuel engines, MAN Energy Solutions also supplies sys- tems capable of ensuring compliance with both present and future emis- tems for the storage and processing of natural gas in maritime applica- Portrait sions requirements. Not only are these technologies fitted on new engines, tions under the MAN Cryo brand. This means the company is able to pro-

Our approach they are also available for retrofitting on engines already in operation. vide its customers with complete engine/gas supply solutions for MAN was the first manufacturer to offer IMO Tier III compliance for its gas-powered ships. Products four-stroke engines by combining them with an SCR (selective catalytic reduction) system. We have now successfully applied this technology to Product responsibility Remanufacturing and service two-stroke 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. „„Energy supply and MAN Energy Solutions gas turbines and gas-only engines offer an ideal With this in mind, MAN Truck & Bus professionally remanufac- remanufacturing solution for decentralized energy generation. Following the launch of the tures used parts such as coolant pumps or crankshafts under the MAN Intelligent mobility 35/44G gas engine (electrical output: 10,335 kW) for power generation, Genuine Parts ecoline brand. These parts then go back into everyday use. MAN Energy Solutions has now extended its gas engine portfolio with the The portfolio comprises more than 4,000 items and makes a key contribu-

Product safety addition of the 51/60G, which has an electrical output of 18,465 kW. This tion to ensuring the sustainable supply of spare parts. A study certified by unit also boasts high efficiency. the technical inspection authority TÜV Nord shows that the remanufac- Production MAN Truck & Bus offers low-pollutant gas engines for CHP plants turing of an ecoline cylinder head emits 85% less CO₂ than the production in an output range from 37 kW through 580 kW in the case of natural gas, of a new cylinder head of the same design. The process also saves on meth- Supply chain and from 68 kW through 580 kW for operation on alternative gases such ane emissions, energy consumption, and raw materials such as cast mate- People as biogas, landfill gas, or sewage gas. With their optimal combustion/CHP rials. processes, they achieve overall efficiencies of over 90%. With more than 115 locations worldwide, MAN PrimeServ, the ser- Society and integrity vice brand of MAN Energy Solutions, maintains a strong local market pres-

Annex ence. The PrimeServ portfolio spans everything from certified original parts and high-quality servicing through customer training and retrofits. Retrofits, for example for diesel engines or marine propulsion systems, help boost efficiency and cut emissions. 19 MAN 2018 GRI Report INTELLIGENT MOBILITY

Digital transformation is opening up whole new business opportunities Connected CoDriver Overview and fields of activity for MAN. Taking commercial vehicle connectivity as Foreword our starting point, we are already offering smart services that lower fuel MAN is also using digitalization to promote a low-carbon driving style. consumption, increase fleet utilization levels, and reduce the frequency of With Connected CoDriver, MAN Truck & Bus offers its customers a system Portrait workshop visits. which, for the duration of the training period, pairs drivers with an instruc-

Our approach tor who acts as a virtual co-driver and provides tips for a more efficient driving style. Products RIO As a digital brand of the TRATON GROUP, RIO offers digital solutions for Product responsibility Platooning the entire transportation and logistics ecosystem on its open and cloud- Efficient and based platform. RIO is aimed at all stakeholders in the supply chain: pro- MAN defines platooning as a vehicle-based system, still at the develop- environmentally friendly ducers and shippers of freight, managers at freight forwarders, transporta- ment stage, in which two or more semitrailer combinations follow each products and services tion and logistics companies, fleet managers, dispatchers, planners, and other in close proximity with the aid of driver assistance systems, steering Energy supply and vehicle drivers. technology, and vehicle-to-vehicle communication. The lead vehicle dic- remanufacturing The RIO Box, which forms the basis for connecting the vehicles tates the speed and the direction and the resulting “slipstreaming effect” „„Intelligent mobility with the platform, has already been fitted as standard in all brand-new achieves significant fuel savings, depending on vehicle model and convoy MAN truck series in Europe since August 2017. The services offered on the length, for the platoon as a whole, which also leads to reduced CO₂, nitro-

Product safety RIO platform allow RIO and MAN to make a significant contribution to gen, and particulate emissions. protecting the environment and the climate: for example, MAN custom- A research project initiated by DB Schenker, MAN Truck & Bus, and Production ers can save fuel by improving tour and route planning and avoiding the Fresenius University of Applied Sciences puts networked trucks into empty journeys. The CO₂ footprint is reduced across the entire logistics practical operation in everyday logistics for the first time. DB Schenker Supply chain chain. All services on the platform – RIO services, MAN services, and part- tested these vehicles as part of its regular logistics operations and using People ner solutions – are aimed at making users’ day-to-day business easier. professional drivers on the digital test site, a section of the A9 highway Increased transparency and reduced complexity offer quantifiable advan- between Munich and Nuremberg, for several months starting in June Society and integrity tages such as freight optimization or shorter routes, enhancing economic 2018. The official results of the research project were published in May

Annex sustainability as a result. 2019. Initial experience shows that the drivers respond well to the pla- tooning system and that it does not result in any significant mental over- load or underload. 20 MAN 2018 GRI Report Intelligent mobility

Overview Extra-long trucks Foreword MAN wins Truck Innovation Award On certain routes, extra-long trucks (up to 25.25 meters) have the potential to absorb the forecast future growth in road freight traffic while helping to Portrait MAN Truck & Bus has won the first Truck Innovation Award for 2019 with its curb greenhouse gas emissions. Compared to conventional trucks, CO₂ Our approach “aFAS – Driverless Safety Vehicle on Highways,” an automated Level 4 safety emissions can be reduced by up to 25%. Since the end of 2017, the longer truck. This first-ever award is presented by the jury of the International Truck trucks have been approved for use on a defined positive network in Ger- Products of the Year. many for an unlimited period of time. Product responsibility Flexible and aerodynamic long truck combinations are also being The MAN aFAS is an innovative safety solution and travels unmanned, fully developed as part of the EU Horizon 2020 research project AEROFLEX and

Efficient and automatically, and slowly behind mobile construction sites, using car-to-car under MAN’s leadership. Offering efficiency gains of between 18% and 33%, environmentally friendly these will make the logistics chain significantly more efficient from 2025 products and services communication to follow the truck ahead of it, which is used on the break- down lane of highways. Conventional follow-on vehicles are still often onward.

Energy supply and involved in serious rear-end collisions, some of them dramatic. When the remanufacturing MAN aFAS is in use, there is no driver in the vehicle. „„Intelligent mobility

Product safety

Production

Supply chain

People

Society and integrity

Annex 21 MAN 2018 GRI Report PRODUCT SAFETY

All MAN products are checked and monitored for safety aspects on an Driver assistance systems Overview ongoing basis. To meet the high safety standards, MAN Energy Solutions Foreword has set up a Product Safety Committee. At the corporate organizational Based on many years of accident research, MAN Truck & Bus is working to level, product safety is also underpinned by the “Product safety monitor- continuously improve the safety of its vehicles. MAN’s driver assistance Portrait ing and the handling of substandard products” subgroup policy, version systems (Adaptive Cruise Control (ACC), Lane Guard System (LGS)) increase

Our approach 03 of which is currently ratified. The Executive Board has also set out inter- road safety and reduce fuel consumption. This is also confirmed by the nationally binding product safety guidelines in addition to other policies. European research project euroFOT, with companies and institutions Products As in previous years, the product safety audits carried out centrally in 2018 from ten different countries taking part:

Product responsibility documented the considerable awareness of product safety that exists throughout the MAN Energy Solutions organization. Trucks using ACC achieved average fuel savings of almost 2% over the Efficient and MAN Truck & Bus lives up to its responsibility for the products period of the trial, despite also recording a higher average speed. At the environmentally friendly placed on the market by ensuring intensive and systematic product moni- same time, critical events such as hard braking or sudden evasive products and services toring, efficient reporting channels, and a committee structure estab- maneuvers were reduced by more than one-third. Energy supply and lished for this purpose. This is set out in subgroup policy 19 101, which is LGS, which warns drivers if they leave a lane, resulted in better lane- remanufacturing based on Volkswagen Group Policy 4 “Product Safety and Conformity.” The keeping and smoother steering. Intelligent mobility system described in this Policy is used to monitor and ensure product safety and conformity for MAN Truck & Bus products. In the concluding survey, 94% of drivers said that ACC significantly „„ Product safety improved safety – and rated it as one of the most important driver assis- TÜV Report for Commercial Vehicles tance systems for trucks. Production In the TÜV Report for Commercial Vehicles, most recently published in Training Supply chain 2017, MAN Truck & Bus emerged as a strong performer for the fifth time People running as the truck manufacturer with the highest share of vehicles to MAN ProfiDrive is the professional advanced training system from MAN pass the main TÜV inspections free of faults. Truck & Bus which is used in 47 countries worldwide. Industry-specific Society and integrity training sessions in accordance with the Berufskraftfahrerweiterbil-

Annex dungsgesetz (BAG — German Professional Driver Qualification Act) teach drivers how to adopt a prudent driving style in order to avoid road traffic risks. This increases safety, reduces consumption, and cuts the costs asso- ciated with wear-and-tear. 22 MAN 2018 GRI Report Product safety

Customer satisfaction and information fuel consumption. We present information on the CO₂ emissions gener- Overview ated by our vehicles with reference to the total lifetime mileage. The calcu- Foreword MAN conducts surveys on product and service satisfaction in all business lations can be simulated using the TCO (total cost of ownership) calculator units on a regular basis. By way of example, MAN Truck & Bus continu- on the MAN Truck & Bus AG website. Portrait ously tracks customer satisfaction using the CustomerFirst Study (CFS). In In addition to training courses on products and services, we offer

Our approach 2018, just under 50,000 interviews were conducted as part of the CFS. MAN Truck & Bus sales staff regular training on climate-related and envi- Almost 95% of those surveyed gave MAN Truck & Bus a “good” rating or ronmental topics. This ensures that we can provide our customers with Products better, while around 75% responded with “very good” or better. This indi- expert advice.

Product responsibility cates that customer satisfaction has shown a further rise compared to Every two years, MAN Energy Solutions conducts an online survey 2015, 2016, and 2017 levels. which also serves to monitor customer satisfaction. 5,800 customers were Efficient and We provide our customers with information and instructions for interviewed in 2017, with 48% rating MAN Energy Solutions as excellent or environmentally friendly all our products. We inform them specifically about factors such as rolling very good. products and services resistance and aerodynamic drag, which influence vehicle emissions and Energy supply and remanufacturing

Intelligent mobility

„„Product safety

Production

Supply chain

People

Society and integrity

Annex 23 MAN 2018 GRI Report RESPONSIBILITY IN PRODUCTION

Overview Climate change, pollution, and resource scarcity are relevant global challenges facing the Foreword production sector. State-of-the-art technology and our integrated management systems Portrait are helping us to reduce the environmental impact of our production activities. We use Our approach various levers to lower CO2 emissions and help mitigate climate change.

Products

Production

Climate and energy

Efficient transportation and logistics Scope of the indicators Environmental and This chapter covers 34 production sites in the MAN Truck & Bus, MAN Latin Our reporting of direct and indirect CO emissions is aligned with the emis- resource conservation 2 America, MAN Energy Solutions, and Renk divisions. Information on occu- sion factors of the Association of the German Automotive Industry (VDA), pational health and safety refers to the 34 sites. In the interests of transpar- except for emissions from district heating. Wherever possible, we use site- Supply chain ency, in 2017 the Group introduced a uniform reporting framework aligned specific emission factors here; otherwise the VDA factors are applied. People with that of the Volkswagen Group. Under the new, uniform Group definition, non-production sites (Dachau, Salzgitter (warehouse), Holeby, and Plauen) The Pithampur site is only taken into account up to and including September Society and integrity are not included in the environmental indicators. 2018, after which it was no longer part of the Group.

Annex The reporting of CO2 emissions in the Progress Report on MAN’s Climate Strategy refers solely to the 28 production sites that fall within the scope of the Climate Strategy, and excludes the Winterthur and St. Petersburg sites. 24 MAN 2018 GRI Report Responsibility in production

Overview Foreword Development of production in 2018

Portrait Commercial Vehicles Power Engineering Our approach In 2018, production at MAN Truck & Bus was characterized by rising produc- As the markets for power engineering are exposed to different regional and tion volumes compared with 2017, with an increase of 10.3% in the number economic influences, the individual business development trends tend to Products of vehicles produced to 95,503. This in turn drove up demand for energy and vary as well. Production raw materials, along with the volume of production-related waste. Addition- ally, in the reporting period, construction work at production sites influenced In 2018, the marine market remained at the low level witnessed in the previ-

Climate and energy energy and raw materials demand, as well as volumes of construction waste. ous year. Plans for more stringent emissions standards fueled a positive

Efficient transportation trend for gas-powered ships or ships equipped with dual-fuel engines. The and logistics Production at MAN Latin America increased again in 2019, rising by 32.7% to steady demand in merchant shipping industry was primarily based on orders 35,277 vehicles produced. This in turn led to an increase in volume-depen- for container ships and LNG carriers. The power generation market bounced Environmental and dent environmental indicators. back slightly in a year-on-year comparison with higher demand in all areas of resource conservation application, especially gas.

Supply chain

People

Society and integrity

Annex 25 MAN 2018 GRI Report CLIMATE AND ENERGY

Energy consumption Overview Energy management in MWh 2016 2017 2018 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 Direct energy consumption 647,206 678,696 687,473 458,887 228,586 (combustion fuels and gases) Portrait plant is the first production site to be awarded ISO 50001 certification. Our Indirect energy consumption 719,905 698,604 720,643 535,657 184,986 Our approach distribution company in Germany (SRG) is also certified to ISO 50001. A “convoy project” was launched at MAN Truck & Bus in 2018 to Electrical energy 458,185 446,460 475,515 336,849 138,666 Products systematically prepare the major production sites (Munich, Dachau, Thermal energy 261,720 252,144 245,128 198,808 46,320 Nuremberg, Ankara, and Starachowice) for ISO 50001 certification. The Total 1,367,111 1,377,300 1,408,116 994,544 413,572 Production first certification is scheduled to take effect in 2020. CV: Commercial Vehicles PE: Power Engineering „„Climate and energy

Efficient transportation Energy consumption Direct primary energy consumption and logistics In 2018, energy consumption at MAN production sites increased to 1.41 in MWh 2016 2017 2018 CV PE

Environmental and million megawatt-hours (MWh) (2017: 1.38 MWh). In the Commercial Vehi- Heating oil 2,583 3,108 3,440 2,857 583 resource conservation cles business area, energy consumption per vehicle produced fell from 8.4 Natural gas 378,143 409,175 416,430 276,719 139,711 MWh in 2017 to 7.6 MWh per unit in 2018. Diesel 259,874 259,312 261,331 176,105 85,226 Supply chain The MAN Truck & Bus sites in Salzgitter, Starachowice, and Krakow Other¹ 6,606 7,102 6,272 3,206 3,066 switched to purchasing green electricity in 2018. A total of 56,500 MWh of 1 Gasoline used as fuel on site and fuel gases used in manufacturing processes CV: Commercial Vehicles People PE: Power Engineering green electricity was purchased at these sites in 2018, reducing CO₂ emis- Society and integrity sions by almost 40,000 t. MAN Latin America’s Resende site purchased 37,300 MWh of green electricity in the year under review. The MAN Energy Annex Energy consumption per vehicle produced Solutions sites in Berlin and Saint-Nazaire purchased 8,400 MWh of (figures for the Commercial Vehicles business area) renewable and CO₂-neutral electricity in 2018. in MWh per unit 2016 2017 2018 8.8 8.4 7.6 26 MAN 2018 GRI Report Climate and energy

CO emissions climate goal, the sites have drawn up plans to save energy and cut CO₂ Overview 2 emissions. In addition to the use of renewable energies and new energy Foreword CO₂ emissions per vehicle produced in the Commercial Vehicles business supply concepts, these include the optimization of lighting and heating area fell by 17.2% in the reporting period. Absolute CO₂ emissions at MAN control, building renovation, measures to reduce base load, and moves to Portrait production sites in the Commercial Vehicles business area likewise showed raise employee awareness.

Our approach a drop of 4.3% overall in the reporting period. CO reductions in 2018 Products 2 CO2 emissions per vehicle produced (figures for the Commercial Vehicles business area) Production

„„Climate and energy in tons per unit 2016 2017 2018 26.0% Reduction in CO2 emissions compared with the baseline of 2008. 2.9 2.5 2.1 Efficient transportation This means that we have reached our target ahead of schedule. and logistics Absolute direct and indirect CO emissions1 2 Environmental and CO₂ reductions are evaluated on a cost-benefit basis to focus investment resource conservation in tons of CO2 2016 2017 2018 CV PE on areas where CO₂ avoidance costs are low and the contribution to reach- Indirect emissions 287,346 265,032 250,052 173,627 76,425 ing our target is high. Supply chain Direct emissions 148,119 154,620 156,489 104,586 51,903 Total 435,465 419,652 406,541 278,213 128,328 People CO2 reductions from implementing MAN’s Climate Strategy 1 Direct emissions result from the combustion of primary energy sources, e.g., natural gas, heating oil, diesel; CV: Commercial Vehicles indirect emissions result from purchased electricity and district heating. Emissions are calculated on the PE: Power Engineering Society and integrity basis of the emission factors of the VDA as a general rule. If available, the site-specific emission factors CO2 emissions in tons Baseline: 2008 2018 Reduction in % have been used for emissions from district heating. Commercial Vehicles 401,800 275,543 –31.4 Annex MAN Truck & Bus 374,600 265,710 –29.1 MAN Latin America 27,200 9,833 –63.8 CO2 reduction as part of MAN’s Climate Strategy We had set ourselves the goal of reducing our CO₂ emissions from produc- Power Engineering 142,800 127,683 –10.6 tion by 25% relative to the 2008 baseline by 2020 as part of our Climate MAN Energy Solutions 122,800 104,965 –14.5 Strategy. In 2018, we achieved a 26.0% reduction in CO₂ emissions – equi- Renk 20,000 22,718 +13.6 valent to around 141,374 tons (,Scope of the Climate Strategy, page 23), Total 544,600 403,226 –26.0 thus reaching our target earlier than planned. In working toward our 27 MAN 2018 GRI Report EFFICIENT TRANSPORTATION AND LOGISTICS

Emissions from transportation and logistics As part of the MAN Truck & Bus and Scania Group network, the imple- Overview mentation of a joint train concept was piloted on high-volume routes, Foreword Reducing the environmental impact of our transportation and logistics with implementation planned for 2020. activities is a key element of the integrated environmental management Portrait system at MAN Truck & Bus. A number of targets have been set in this Optimization of transportation routes in the empty container network

Our approach respect, including the optimization of transportation structures and pro- by reallocating sender/receiver relations: the reallocation process aims cedures. A dedicated tool for computing the CO₂ emissions from transpor- to reduce the number of journeys and avoid long-distance journeys, Products tation activities has been put in place. thereby avoiding emissions. To reduce CO₂ emissions within our own logistics chain, we supply Production our regional freight forwarders via freight hubs, which consolidate ship- Switch from noncollapsible to collapsible containers to ensure the effi- Climate and energy ments, optimize vehicle capacity utilization, and prevent vehicles from cient use of cargo space when transporting empty containers (24,000 having to make empty runs. As a commercial vehicle manufacturer, we containers implemented in 2018). „„Efficient transportation and logistics also expect our service providers to use state-of-the-art trucks that comply with the latest emissions standards, are operated in an environmentally Reduction in outbound emissions by switching domestic vehicle distri-

Environmental and friendly manner with low energy consumption, and produce a particu- bution logistics in Germany over to a trailer concept: higher loading resource conservation larly low level of emissions. factors allow more vehicles to be transported per journey, avoiding sep- In the year under review, in the logistics sector MAN Truck & Bus arate journeys and saving CO₂ emissions. Supply chain caused the release of 69,473 tons of CO₂ (2017: 82,189) for incoming sup- plies and 104,535 tons of CO₂ (2017: 96,297) in delivering its products. This People

equates to an absolute reduction of around 2.6% compared with 2017 and Logistics-related CO2 emissions per vehicle produced, in tons Society and integrity a reduction in emissions per vehicle of 14% to 1.61 tons of CO₂ per vehicle. This improvement can be traced back to significantly higher production 2.0 Annex volumes and a further increase in sales from the product range (TGE). The assumptions used for calculation purposes were also updated. 1.5

The logistics sector of MAN Truck & Bus took the following measures to 1.0 continuously improve its CO₂ emissions in 2018: 0 2013 2014 2015 2016 2017 2018 28 MAN 2018 GRI Report Efficient transportation and logistics

MAN Energy Solutions achieved further milestones in 2018 with its “Lean In the year under review, business travel by our employees caused around Overview & Green Logistics” project: with the construction of a heavy-load center in 12,277 tons of CO₂ emissions (2017: 14,800). This figure relates to business Foreword Augsburg and the joint development of a special 24-axle transport wagon travel booked through the central travel service in Germany, around together with a freight forwarder for special transports, we have been able 87.21% of which was for flights. Portrait to shift an increasing volume of large-scale engine transports from road to In Germany, depending on the available infrastructure, we provide

Our approach rail since late 2018. We will be systematically increasing the proportion of subsidized tickets for employees’ journeys to and from work. At the MAN engines delivered by rail in the future, allowing us to save up to 450 tons Truck & Bus site in Munich, there is a shuttle bus that travels to the com- Products of CO₂ a year. This will also allow us to reduce pollution caused by exhaust pany premises, encouraging employees to use public transportation. At gases and noise. selected sites outside Germany, we also provide our employees with bus Production transfers. Our employees network using the TwoGo software solution to Climate and energy Employee mobility form car pools. MAN also helps to reduce commuter traffic by offering the option of working from home. „„Efficient transportation and logistics MAN has Group-wide requirements for air travel, rental cars, and train journeys: employees should only travel when it is unavoidable. Alterna-

Environmental and tives such as video or conference calls must be checked in advance. The resource conservation most environmentally friendly means of transportation should always be used as long as this is economically feasible. Supply chain

People

Society and integrity

Annex 29 MAN 2018 GRI Report ENVIRONMENTAL AND RESOURCE CONSERVATION

Environmental management The plant managers and heads of production are responsible for opera- Overview tional tasks related to environmental protection. At each site, they are Foreword All MAN production sites are certified to a quality standard (the majority supported by specialist officers and/or environmental protection to ISO 9001). We have set ourselves the target of certifying these sites to experts. Portrait the ISO 14001 environmental management standard as well, something

Our approach that has already been achieved for 25 sites. The Querétaro and Rheine sites Regular meetings on environmental protection, climate action, and were certified in the year under review, with introduction measures pend- energy management are held at subgroup level to ensure an ongoing Products ing for Olifantsfontein. The MAN Energy Solutions site in Aurangabad was exchange of information across all central functions and sites. unable to complete the certification, which had been planned for the end Production of 2018, and will complete it in 2019. Systems and instruments Climate and energy Five MAN Truck & Bus sites are additionally validated to the Euro- pean Environmental Management and Audit Scheme (EMAS) and regu- The MAN Group operates systems for managing environmental protec- Efficient transportation and logistics larly publish site-specific environmental statements. tion, occupational safety, and quality. At the production sites, these sys- tems are regularly verified by external experts or auditors, as well as by „„ Environmental and internal audits. We also operate a range of activities relating to energy resource conservation Organization management. Other key systems and instruments for implementing Our environmental management systems are organized at MAN sub- MAN’s Climate Strategy and environmental protection include: Supply chain group level. The overarching objectives, such as MAN’s Climate Strategy, are additionally reported to the CR function of MAN SE. All goals are pur- internal policies and guidelines People sued in collaboration with the subgroups, and put into practice by the regulations on environmental protection, occupational safety, and Society and integrity responsible individuals at each site: energy

Annex The central Environmental Protection and Occupational Safety func- Alongside occupational safety, environmental protection is firmly tions of the subgroups analyze requirements, implement and steer the anchored in the vocational training and continuous professional develop- management systems, and drive them forward in close collaboration ment activities of our employees. with the environmental and occupational safety management officers at the production sites. Consumption of resources and raw materials

The principal raw materials, auxiliaries, and consumables used by MAN in its production are steel, copper, aluminum, and various plastics. Manag- 30 MAN 2018 GRI Report Environmental and resource conservation

ing these resources economically is pivotal to our success. In 2018, expen- Production waste Overview diture on raw materials, auxiliaries, and consumables was up by 18% com- in tons 2016 2017 2018 CV PE Foreword pared to the previous year. Total waste for disposal 7,872 8,976 10,898 8,903 1,995 Portrait Hazardous 5,102 5,405 7,246 6,103 1,143 Expenditure on materials Non-hazardous 2,770 3,571 3,652 2,800 852 Our approach in € million 2016 2017 2018 Total waste for recycling 44,024 46,417 50,089 35,033 15,056 Products Expenditure on raw materials, auxiliaries, 6,532 6,749 7,992 Hazardous 11,200 11,013 10,363 7,345 3,018 consumables, and procured supplies Non-hazardous 32,824 35,404 39,726 27,688 12,038 Production Expenditure on procured services 460 358 405 Metallic waste 53,060 52,809 58,797 45,261 13,536 Climate and energy Total 6,992 7,108 8,396 Total waste 104,956 108,202 119,784 89,197 30,587 Recycling ratio (%) 92 92 91 90 93 Efficient transportation CV: Commercial Vehicles and logistics Recycling and waste PE: Power Engineering „„ Environmental and The majority of products manufactured by MAN are made from recyclable In order to reduce the amount of waste that is not attributable to the pro- resource conservation materials. MAN Truck & Bus has started recording the exact proportions duction process, MAN Truck & Bus has had an environmental concept in for product life cycle assessments. place for reusable and to-go cups since May 2018 that involves distributing Supply chain We prioritize the reuse of metals in our foundries in order to save reusable cups and bottles to its employees free of charge. This slashed the raw materials. At our Augsburg (MAN Energy Solutions) and Nuremberg consumption of disposable cups by 85% after only a short period of time. People (MAN Truck & Bus) sites, we purchased and reutilized specified scrap from MAN Energy Solutions also introduced reusable cups at its Augsburg site Society and integrity external recycling processes. In the year under review, these plants also at the end of 2018. This allows the company to save on the waste created by began recycling chips and scrap from our own production for reuse in the the use of around 600,000 disposable cups every year. Annex manufacturing process. Over the same period, total waste volumes amounted to approxi- Water and wastewater mately 119,784 tons, 91% of which was recycled. 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 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 twelve Energy Solutions, we abstracted large volumes of water from watercourses. sites in the year under review and amounted to 88,975 tons (2017: 97,229 This was used solely for cooling purposes and to operate water brakes dur- tons). ing engine testing. After use, the water is returned to its source. 31 MAN 2018 GRI Report Environmental and resource conservation

At our Munich site, work to expand the central well water supply contin- Atmospheric pollutants Overview ued. Groundwater is used for cooling purposes and is then returned to its in tons 2016 2017 2018 CV PE Foreword source. This procedure reduces the amount of energy needed to cool plants and processes. Sulfur dioxide (SO2) 0.94 1.00 0.87 0.68 0.19

Portrait Nitrogen oxides (NOX ) 320 378 370 263 107 Particulates 1.39 1.36 1.35 1.08 0.27 Our approach Water consumption and wastewater volume Volatile organic compounds 778 792 885 821 64 (VOC) Products in m3 2016 2017 2018 CV PE Total freshwater 7,649,195 8,952,647 9,464,280 5,746,327 3,717,953 CV: Commercial Vehicles Production PE: Power Engineering from external sources 865,332 859,378 820,213 629,393 190,820 (incl. drinking water) Climate and energy from own abstraction 6,783,863 8,093,269 8,644,067 5,116,934 3,527,133 Investment in environmental protection Efficient transportation (incl. well water) and logistics In the year under review, the sites invested around €11 million in environ- Surface water from lakes, 8,637,958 7,440,450 8,096,781 164,673 7,932,108 mental protection measures (2017: €12.3 million). The main measure „„ rivers, and the sea Environmental and implemented within this context was the construction of a new facility for resource conservation Wastewater 1,307,620 1,268,790 1,259,465 839,128 420,337 the painting of plastic parts at the Steyr plant. CV: Commercial Vehicles At MAN Energy Solutions in Augsburg, a large part of the invest- PE: Power Engineering Supply chain ment volume went into the construction of a new heavy-duty center which will play a key role in implementing the “Lean & Green Logistics” People program. Society and integrity Atmospheric pollutant emissions The development in atmospheric pollutant emissions from production Annex Environmental violations varied in the year under review. Emissions from the combustion of pri- mary energy sources fell slightly, while emissions from painting facilities No accidents with significant environmental impact resulting in fines rose due to higher production figures and the commissioning of new occurred in 2018. painting facilities at the MAN Truck & Bus sites in Steyr and Salzgitter. 32 MAN 2018 GRI Report RESPONSIBILITY IN THE SUPPLY CHAIN

The MAN Group’s procurement policy aims to optimize material Overview costs, ensure security of supply, and reduce environmental and Foreword social risks in the relationship with suppliers. As well as maximizing Portrait cost-effectiveness and efficiency, we are also committed to

Our approach improving sustainability aspects.

Products

Production

Supply chain

„„Responsible procurement RESPONSIBLE PROCUREMENT People Society and integrity Regional suppliers Concept and organization

Annex MAN purchases most of its raw materials, goods, and services locally, i.e., As part of the Volkswagen Group, we have adopted the “Sustainability in in the locations in which the Company has its production operations. This Supplier Relations” concept. We are part of the Sustainability Procure- allows us to contribute to local economic and social development. For ment Network, which now comprises more than 40 experts from the example, 98% 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 73% of them in Ger- allows us to identify future developments and challenges at an early stage many. Growth potential leveraged by demand for goods and services from and develop solutions together. 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. training – are designed to prevent negative social, environmental, and financial impact in our supply chain: 33 MAN 2018 GRI Report 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 world- Products Pillars of the sustainability concept wide and are written into all supplier contracts ( Code of Conduct for Suppliers and Business Partners). We also expect our tier 1 suppliers to Production pass these requirements on to their own suppliers. This helps ensure a Supply chain consistently high quality of procured goods and services, while avoiding Requirements Monitoring Other training potential supply shortages and damage to our reputation. „„Responsible procurement VW sustainability Early detection to mini- Improvement of sup- requirements in the mize risks by way of plier performance The requirements span a range of issues, including environmental form of a “Code of third-party audits through protection, employee rights, fair market conduct, and transparent busi- Conduct” as an inte- People Self-Assessment e-learning ness relations, and have been a mandatory element of all contracts since gral contractual com- Questionnaire individual ponent 2015. They set out expectations in terms of business partners’ conduct Society and integrity training measures monitoring of the with regard to central environmental and social standards. Among other Self-Assessment Annex Questionnaire status things, they are based on the principles of the UN Global Compact, the 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 environmental targets, environmental and quality spec- ifications, and the Volkswagen Declaration on Social Rights. 34 MAN 2018 GRI Report 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

Our approach ment which measures they have taken in selected areas. The SAQ , which is bodies of the Volkswagen Group, to the labor union federations, or to the widely used in the industry, was developed by the Volkswagen Group Volkswagen Group ombudsman system. Products together with other automotive groups. For example, we want our main suppliers to have a certified envi- Production Supplier training ronmental management system according to ISO 14001 and/or EMAS. 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 People audits, which scrutinize our suppliers for compliance with environmental, the e-learning module on sustainability.

Society and integrity social, and human rights standards. We train all of our procurement employees on the basis of the If one of our suppliers is suspected of violating our sustainability “Code of Conduct for Suppliers and Business Partners” and the “Volkswa- Annex requirements, we will request a written statement. If the answers prove gen Group’s requirements regarding sustainability in supplier relations” unsatisfactory, we will take further appropriate steps, such as the exami- as an integral part of the training concept. A total of 193 new procurement nation of documents, on-site visits to the supplier’s premises, or further employees were trained in 2018 in addition to the more than 300 procure- tailored supplier training activities. ment employees that have already undergone training. 35 MAN 2018 GRI Report Responsible procurement

We are aware that, in our industry, many of the potential effects on people means that we are well acquainted with the country-specific, industry- Overview and the environment arise primarily in the upstream value chains, for specific, or even supplier-specific facts and can take targeted action based Foreword example in raw materials extraction or the production of primary prod- on this information. Absolute certainty regarding the enforcement of our ucts. As a manufacturer with a global supply chain, enforcing our sustain- requirements, however, can only be achieved through direct communica- Portrait ability requirements right down to the last link in the supply chain is a tion and control.

Our approach particular challenge. The “Sustainability in Supplier Relations” concept

Products

Production

Supply chain

„„Responsible procurement

People

Society and integrity

Annex 36 MAN 2018 GRI Report RESPONSIBILITY FOR PEOPLE

MAN is one of Europe’s leading players in the commercial vehicle sector. To Overview maintain this position going forward, we need highly skilled and motivated Foreword people on our team. It is our aim to offer our employees a safe and attractive Portrait working environment that lets them develop to their full potential. This is made

Our approach 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. Now Retaining the right employees and in the future, this means attracting talented and skilled employees, We offer flexible working hours models such as Flex Work, trust-based

Vocational and offering them professional development opportunities and an innovative hours, or telecommuting. Open-plan concepts for different working envi- other training working environment, and actively promoting diversity within the Com- ronments boost our employees’ efficiency, innovativeness, and satisfac- Diversity and equal pany. 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 as pluralism and under- Annex nities for getting started at MAN – from internships for secondary-school stand it as the long-term strategic approach to ensuring our future viabil- students through a wide range of vocational training programs, our Global ity. We continue to develop our corporate culture and invite our employ- Champion Trainee Program, and traditional direct hiring. ees to contribute their diverse skills, knowledge, experience, and perspectives to our Company. 37 MAN 2018 GRI Report Human resources strategy

We respect all of our colleagues and create an atmosphere of respect and Principles and guidelines Overview mutual trust. This makes us more innovative, agile, and dynamic as a com- Foreword pany and gives us a competitive edge. MAN and its employees are active in more than 180 countries. We stand for respect and tolerance, have made a clear commitment to diversity, and Portrait Organization do not discriminate based on age, gender, religion, ethnicity, or sexual ori- Our approach entation. Wherever MAN has production sites, we support local economic Human resources management within the Group is placed under the cor- development by recruiting employees from the region. Products porate HR function, headed up by the Chief Human Resources Officer and Arbeitsdirektor (Executive Board member responsible for employee rela- The following policies provide a binding framework for our human Production tions) of MAN SE and MAN Truck & Bus AG. In the central functions, we resources work around the globe: Supply chain develop uniform methods and instruments and bundle competencies UN Global Compact with the aim of leveraging synergies and setting consistently high quality OECD Guidelines for Multinational Enterprises People standards. Code of Conduct, as amended „„Human resources Charter on Labor Relations strategy Charter on Temporary Work Attractive employer International Framework Agreement of the MAN Group 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 38 MAN 2018 GRI Report ATTRACTIVE EMPLOYER

Top employer MAN is working toward its objectives with the aid of strategic focal points: Overview developing a future-oriented and competitive organizational struc- Foreword To secure a lasting position as a top employer, MAN has committed itself ture, to the following objectives: recruiting and retaining the best employees – as the basis for our suc- Portrait offering comprehensive onboarding programs to integrate new cess,

Our approach employees into the world of MAN as quickly as possible, continuously improving and transforming ourselves as an organiza- providing topic-specific and interdisciplinary training and CPD, tion and adapting to the changing needs of employees and applicants, Products facilitating the creation of professional and international networks, seeing the challenges of globalization and digitalization as an oppor- fostering cooperation across divisions, and tunity and working with our stakeholders across the globe, Production positioning MAN as a top employer. and promoting pluralism and a diverse workforce. Supply chain Being a top employer is an integral part of MAN Truck & Bus’s FUTURE People MAN Future Lab LION corporate strategy. As an employer, we want to use the human Human resources resources strategy based on FUTURE LION to meet current and future The MAN Future Lab has been built on a site covering around 300 square strategy challenges. The world of work will continue to undergo structural change, meters at the Munich headquarters and represents a milestone as MAN „„Attractive employer particularly due to megatrends such as globalization and the use of new Truck & Bus moves toward the Working World 4.0. The office concept is technologies, e.g., digitalization, automated driving, and electric mobility. based on an open-space approach and is divided into different zones that

Vocational and This means that the needs of our employees and applicants are changing, are individually adapted to suit a whole range of work situations. The MAN other training too. MAN needs employees with skills that are in demand now and will Future Lab is equipped in a way that makes it possible for employees to try Diversity and equal remain in demand in the future. Within this context, it is MAN’s responsi- out different hardware and software solutions thanks to new and modern opportunities bility to train its employees and further develop their skills on an ongoing IT infrastructure in line with the 360-degree approach. This includes non- basis in order to achieve the sustainable transformation of our corporate territorial leadership, agile methods, space & equipment, IT resources, and Occupational health and safety culture. cross-functional cooperation. We received the “Xing New Work” Award in 2018 in recognition of these forward-looking activities.

Society and integrity

Annex 39 MAN 2018 GRI Report Attractive employer

Overview Fostering young talent Retirement benefits

Foreword It is our aim to attract and retain talent at an early stage. We offer intern- Employees in Germany receive benefits from the occupational pension ships, scholarships, and career development programs, as well as PhD and system that constitute a key element of MAN’s remuneration policy. These Portrait trainee programs, to young people who are attending or have recently benefits represent a source of additional income on retirement and also

Our approach graduated from universities and vocational-technical schools. In addition, provide cover for the risk of permanent disability or death during active MAN Truck & Bus and MAN Energy Solutions are represented at some ten employment. Employees benefit from employer contributions that are Products specialist and university career fairs every year and stage targeted activi- tied to their remuneration and can make additional provision through ties at colleges and universities around the world. There are also lecture deferred compensation – which is employer-subsidized for staff who are Production series that give students the opportunity to enter into dialog with MAN covered by collective bargaining agreements. Supply chain managers. Depending on the usual practice in each country, employees at sites outside Germany receive benefits from defined benefit pension plans People Stimmungsbarometer employee opinion survey in line with local market standards. These are predominantly geared Human resources toward providing lifelong annuities, mandatory one-off payments upon strategy [102-43] In 2018, we conducted our employee opinion survey, Stimmungs- retirement/resignation, or contributions to external defined contribution „„Attractive employer barometer, for the sixth time, with around 45,000 employees across all plans. subgroup companies taking part. The participation rate at MAN SE/MAN More information on this topic can be found in the MAN 2018

Vocational and Truck & Bus came to 85% (2017: 80%), with a rate of 83% (2017: 77%) at MAN Annual Report on pages 113ff. other training Energy Solutions and 95% (2017: 96%) at Volkswagen Caminhões e Ônibus Diversity and equal – higher than in the previous year in general. The measured level of Job security opportunities employee satisfaction was 75.9 (2017: 74.0) at MAN SE/MAN Truck & Bus, 75 at MAN Energy Solutions (2017: 73.4), and 92.8 (2017: 94.3) at Volkswa- As part of a realignment of the MAN Truck & Bus production network, we Occupational health and safety gen Caminhões e Ônibus, up on the prior-year level overall. have streamlined our European manufacturing group, clearly defining the The results form the basis for improvements which will be initiated operational focal points of each plant. We achieve higher productivity by and implemented in the departments and teams in 2019 to improve bundling similar types of production at fewer sites, while efficient vertical Society and integrity co­operation and the working environment. The survey is conducted on a integration keeps our headcount at an almost consistently high level. Annex standardized, anonymous basis throughout the Volkswagen Group. Against this backdrop, MAN Truck & Bus plans to make a three-digit mil- 40 MAN 2018 GRI Report Attractive employer

lion euro investment by 2019. These plans are being rolled out in consulta- respect, team spirit, and determination. The Code of Conduct focuses on Overview tion with the responsible Works Council committees and labor unions in the integrity and responsibility of each individual. It also uses practical Foreword Germany, Poland, Austria, and Turkey. examples to explain how each individual can live up to this responsibility In order to also secure its competitive standing on the one hand and safe- and act with integrity – especially in conflict situations. Portrait guard jobs on the other, MAN Truck & Bus has launched the “Zukunfts- Four cases of discrimination were reported to MAN in the year

Our approach fähigkeit” future sustainability initiative in consultation with the respon- under review, all of which have been closed. sible employee representative bodies. The initiative aims to use continuous [102-41] MAN recognizes the rights of workers to form and partici- Products improvements to help address future changes in the industry landscape pate in unions and to conduct collective bargaining. Almost all permanent while safeguarding our employees’ jobs. staff in Germany are covered by collective bargaining agreements; around Production The Base Camp 3000+ program launched by MAN Energy Solu- the globe, the share of our workforce which falls under collective agree- Supply chain tions back in late 2016 has been completed, and the €491 million improve- ments stands at 86%. ment in earnings achieved as part of the program will secure the compa- The Volkswagen Charter on Temporary Work has been rolled out at People ny’s future viability and the further development of its corporate strategy. MAN Truck & Bus and MAN Energy Solutions. In the various countries Human resources These endeavors will also be supported by the implementation of a pack- where MAN is active, employee relations are structured in accordance strategy age of measures aimed at optimizing site structures that was agreed with national laws and regulations. „„Attractive employer between the Executive Board and the General Works Council in 2017 and resulted in a total of 900 jobs – 600 of them in Germany – being shed in a Employee structure Vocational and socially responsible manner. One key component of this package of mea- other training sures was the merger of the two MAN Energy Solutions plants in Ham- The MAN headcount is defined as all active employees (permanent staff), Diversity and equal burg, which was implemented based on an amicable agreement reached employees in the passive phase of partial retirement, and vocational train- opportunities with the local employee representatives. ees. It does not include subcontracted employees. On December 31, 2018, the MAN Group employed 55,476 people Occupational health and safety Employee rights (2017: 54,297) in more than 180 countries. This represents an increase of 1,179 employees compared with the end of 2017. The ratio of employees The existing Code of Conduct was reviewed and adapted to reflect current in Germany to those in other countries changed only slightly. Our non- Society and integrity requirements in 2018. The principles enshrined in the Code of Conduct are German companies employed a total of 23,957 people in the year under Annex based on MAN’s shared corporate values: customer focus, integrity, review (2017: 22,856), with 31,519 people employed in Germany (2017: 31,441). 41 MAN 2018 GRI Report Attractive employer

Employees by business area Employees by location Overview 2016 2017 2018 2016 2017 2018 Foreword Commercial Vehicles 36,777 37,501 38,204 Germany 31,444 31,441 31,519 Portrait Power Engineering 16,808 16,553 17,046 Other countries 22,380 22,856 23,957 Others 239 243 226 Total 53,824 54,297 55,476 Our approach MAN Group 53,824 54,297 55,476 % in other countries 42 42 43 Products

1 1 Production Employee structure Age structure

Supply chain 2016 2017 2018 2016 2017 2018 Permanent staff 49,982 50,455 51,428 < 30 8,256 8,422 8,808 People of which women 6,758 6,878 7,116 31–40 14,978 15,028 15,055 Human resources of which men 43,224 43,577 44,312 41–50 14,264 14,139 14,240 strategy of which part-time employees 1,250 1,349 1,669 51–60 10,950 11,292 11,608 of which women² - - 1,155 > 60 1,534 1,574 1,717 „„Attractive employer of which men² - - 514 Total 49,982 50,455 51,428

Vocational and of which employees on fixed-term contracts 1,881 1,992 2,312 ¹ only permanent staff other training of which women - - 328 Diversity and equal of which men - - 1,984 The number of employees on fixed-term contracts rose by 16.1% to 2,312 opportunities Vocational trainees 3,145 3,132 3,279 (2017: 1,992). The number of subcontracted employees came to 3,197 (2017: of which women 547 559 537 2,584), with 170 (2017: 125) of them being taken on as permanent staff. The Occupational health and safety of which men 2,598 2,573 2,742 increase in subcontracted employees compared with 2017 was mainly due of which: Germany 2,245 2,169 2,157 to demand at MAN Truck & Bus (+ 508) and MAN Energy Solutions (+ 113). Employees, passive partial retirement 697 710 769 In the year under review, 1,155 women and 514 men at MAN held part-time Society and integrity Headcount 53,824 54,297 55,476 contracts not related to parental leave. Annex Subcontracted employees 1,562 2,584 3,197 ¹ at the end of the year in each case, including MAN Energy Solutions SE and Renk AG ² figures broken down by gender for the first time in 2018 42 MAN 2018 GRI Report Attractive employer

Overview Employee turnover

Foreword The employee turnover rate indicates what percentage of employees left the company during a one-year period. Employees on fixed-term con- Portrait tracts and employees starting retirement or partial retirement are not

Our approach included in the calculation of this indicator. The relevant 2,431 departures in 2018 (2017: 2,108) result in an employee turnover rate of 4.7%, up by 0.5 Products percentage points on the previous year. In the year under review we hired a total of 4,926 people, while 3,654 left our Company.1 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

1 “Employees who have left the company” includes 1,223 employees on fixed-term contracts and employees starting retirement or partial retire- ment. These are not included in the aforementioned “departures” (2,431). 43 MAN 2018 GRI Report VOCATIONAL AND OTHER TRAINING

Vocational training and the dual model digital support for all training content and projects spanning all voca- Overview tional training careers and, as well as familiarizing the trainees with the Foreword Our vocational training model ensures the professional development of use of various applications and tablets, enables the acquisition of subject- the next generation of outstanding technical and commercial employees. related digital skills. Portrait The program, which is anchored in the MAN Academy, saw some 606 When it comes to vocational training, MAN remains committed to

Our approach (2017: 730) vocational trainees and students on dual programs start their making systematic investments in new technologies, providing training careers at MAN Truck & Bus in the fall of 2018 – in locations including Ger- covering the basics of robotics and programming to several occupational Products many, Austria, Turkey, and Poland. groups. In addition to technical training, MAN attaches a great deal of In the year under review, there were 3,279 (2017: 3,132) young tal- importance to helping employees to develop their social skills, which is Production ents training for a total of 26 different vocational training careers. 16.4% why it actively supports various social exchange and social cooperation Supply chain (2017: 17.8%) of them were women in the year under review. programs and projects, as well as opportunities for employees to experi- In cooperation with various universities, 178 (2017: 169) students ence places of historical interest. 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; around 18% of them at MAN Truck & Bus and 22% of them at MAN Energy Solutions are women. Attractive employer Vocational trainees account for In order to prepare MAN Truck & Bus for the digital future of the „„ Vocational and working world and to familiarize vocational trainees and students on dual other training programs with the challenges of Industry 4.0, they are already being intro- Diversity and equal duced to the relevant content as part of their vocational training/studies. of6.4% our permanent workforce opportunities The “Berufsausbildung 4.0” (Vocational Training 4.0) platform provides

Occupational health and safety

Society and integrity

Annex 44 MAN 2018 GRI Report Vocational and other training

Continuous professional development and training requirements, the Berufsfamilien Academies expanded their range of Overview training programs in 2018, focusing on new working methods, electric Foreword Digitalization is not the only change facing the Company. A new genera- mobility, and supporting the transformation of processes, methods, and tion of employees is transforming our understanding of working meth- employees. Portrait ods, models, and environments, as well as the associated forms of collabo- ration, communication, and leadership. This is why we have developed Our approach Leadership and management training targeted measures for continuous professional development and training. Products Approximately 113,000 participants took part in some 7,700 con- The ever-changing challenges facing managers, the impact of megatrends, tinuous professional development (CPD) and training initiatives in 2018. and the expectations of new generations are forcing us to rethink our HR Production Each MAN Truck & Bus employee received an average of 23.12 CPD hours in development approach. Supply chain 2018 (2017: 20.3)1. At MAN Energy Solutions, 20,400 participants took part We have revamped our strategy for the development of up-and- in 2,850 CPD and training initiatives during the same period. This brought coming new managers accordingly. One example is the incorporation of People the average number of CPD hours per employee to 16.5 (2017: 16.0). 360° feedback on performance in day-to-day working life into the manage- Human resources Internal experts impart specific specialist skills as part of the ment appointment process. strategy “Berufsfamilien Academies” (BFA) concept, ensuring systematic knowl- Interactive training concepts have been developed to support Attractive employer edge transfer and employee training. The MAN Academy broadens this managers, encouraging them to address the topics covered by the training offering and guarantees uniform standards of quality and competencies sessions in detail and reflect on their significance for everyday life as a „„ Vocational and around the globe. manager. other training Strategic and technological innovation and the transformation of Diversity and equal the working world, driven by digitalization and Industry 4.0, call for tar- opportunities geted training measures. With a focus on future competencies and new

Occupational health and safety

Society and integrity

Annex

1 CPD hours include external participants in sales/after sales training. 45 MAN 2018 GRI Report 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 At MAN, plurality and inclusion form part of a long-term strategic ation. Our new managers receive training to raise their awareness of the approach to securing the future. We are developing our corporate culture issue of equal opportunities. In the year under review, the proportion of Portrait further, inviting our employees to contribute their diverse skills, knowl- female managers came to 9.2% (2017: 9.3%). Furthermore, since the new

Our approach edge, experience, and perspectives to our Company. This is why we have elections to the Supervisory Board held at the 2016 Annual General Meet- also signed the Diversity Charter, an initiative launched by German com- ing, the composition of the Company’s Supervisory Board has complied Products panies to promote diversity in the corporate sector and in institutions with the requirements set out in section 17 (2) of the SE-Ausführungs­ under the patronage of Chancellor Angela Merkel. gesetz (SEAG — German SE Implementation Act) with regard to the pro- Production We put our corporate values into practice; this makes us more portion of women and men. Supply chain innovative, agile, and dynamic, and boosts our competitiveness at the same time. People Women in management positions One focal point is equal opportunities for men and women. We Human resources attract female employees at events such as the Women’s Career Day or by 2016 2017 2018 strategy participating in the HerCareer careers fair. MAN offers special HR develop- Number of women in management (MK) 4 4 6 Number of women in senior management (OMK) 32 35 34 Attractive employer ment measures, such as its mentoring program or an orientation pro- gram, to motivate potential female candidates to embark on a manage- Number of women in top management (TMK) 92 98 109

Vocational and ment career, to support women who are starting out as specialists and Total 128 137 149 other training managers. Percentage of women in management positions 9.2 9.3 9.2 „„Diversity and equal opportunities

Occupational health and safety

Society and integrity

Annex 46 MAN 2018 GRI Report 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 1,849 severely disabled people in sites that care for 154 (2017: 157) infants, toddlers, and young children. We Germany (2017: 1,716). Examples of active measures to promote inclusion Products also offer part-time hours for management staff. In 2018, we appointed a at our Munich site include redesign of workstations, creation of new jobs pregnant employee to the management team for the first time. We have for severely disabled persons, accessible communication for deaf employ- Production also included an optional criterion, “broad-based social experience gained ees, and mobility aids. Supply chain as a result of long-term care leave, maternity and parental leave,” in the In recognition of its outstanding commitment to the integration minimum criteria for appointment to a management position. of the severely disabled, the Spare Parts Dachau area received the “Job Suc- People Information sessions for expecting parents, a seminar on reentry cess – People with Disabilities in the Workplace” (“Job Erfolg – Menschen Human resources into the workforce after parental leave, a vacation program for employees’ mit Behinderung am Arbeitsplatz”) award in the private sector category. strategy children, and the option to work from home round off the opportunities The prize is awarded jointly by the Bavarian State Parliament, the Bavarian Attractive employer available at the Munich site. In addition, employees can take advantage of State Ministry of Labour and Social Welfare, Families and Integration, and a caregiver placement service to help find appropriate care for children the representative of the Bavarian State Government for people with dis-

Vocational and and family members. abilities. other training

„„Diversity and equal opportunities

Occupational health and safety

Society and integrity

Annex 47 MAN 2018 GRI Report OCCUPATIONAL HEALTH AND SAFETY

Occupational health and safety management make it easier for employees to be seen, and allow them to be seen much Overview earlier, in poor lighting conditions, which helps to improve safety. Foreword Shifting demographics, the ever-increasing pace of change in the working In addition to preventive measures to counteract physical illnesses, environment and in manufacturing processes, as well as the impact of cli- MAN Truck & Bus also assesses possible dangers to mental health in the Portrait mate change (for example due to extreme weather events) present signifi- workplace at the Munich plant. With the support of an external consul-

Our approach cant challenges for occupational health and safety at MAN. Within the tant, the occupational health management system at the Munich plant context of our comprehensive occupational health and safety system, we was analyzed to define the focal points for 2019. In addition to the priority Products consider prevention, occupational safety, occupational health promotion, topics, the annual theme for 2019 focuses on psychosocial health and corporate reintegration management, and ergonomics to be our top pri- includes a range of lecture series, relaxation courses, and workshops. Production orities. In the period under review, an interdisciplinary team within MAN Supply chain The central health services functions at MAN provide advice to us Energy Solutions worked on improving the risk assessment for employees as an employer in the formulation and implementation of our Company- on international business trips and secondments, and on optimizing pro- People wide health management strategy. The aim is to develop and uphold prin- cesses. Human resources ciples that apply in every location in order to achieve a coordinated strate- strategy gic approach to health services worldwide. In addition, the health services Lost-time injuries1 Attractive employer at our plants act independently to address specific concerns with appro- priate measures. 2016 2017 2018 Vocational and Number of lost-time injuries2 835 790 726 other training Accident frequency index3 13.5 12.7 13.0 Preventive occupational safety 4 Diversity and equal Accident severity index 16.6 16.7 14.8 opportunities Occupational safety includes all measures related to preventing workplace 1 Only reported lost-time injuries affecting permanent staff in production or at production-related sites 2 In accordance with the Sozialgesetzbuch (SGB — German Social Code), lost-time injuries are defined as injuries incurred by the insured while car- „„ accidents, work-related illnesses, and occupational diseases. Across our rying out their insured employment. Occupational health and We count lost-time injuries starting at one day of missed work. safety plants, we systematically evaluate workstation ergonomics and potential 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 calculat- workplace hazards. Across the Group, we have continued with all existing ing 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 number of initiatives to cut accident rates and prevent work-related illness. In addi- hours worked. The formula for calculating the index is the number of workdays missed multiplied by 1 million divided by hours worked multiplied Society and integrity tion, we conduct regular internal and external occupational health and by 10. Annex safety audits and inspections. When new workwear was introduced in the MAN Group, care was There were no (2017: no) fatal workplace accidents in 2018. taken to optimize safety aspects for the various occupational groups. In particular, the large reflective stripes featured in the standard workwear 48 MAN 2018 GRI Report Occupational health and safety

Behavior-based safety which will replace OHSAS 18001 as the basic standard for occupational Overview health and safety management effective March 11, 2021. Foreword We promote the health of our employees by taking measures to reduce At MAN Energy Solutions, another important aspect is the SCC accidents, prevent occupational illnesses, and maintain good health. (Safety Certification Contractors) certification of the PrimeServ service. Portrait Behavior-Based Safety Training is offered at MAN Energy Solutions This certification of individuals and certain organizational units is a fun-

Our approach to promote awareness of safety issues, a concept that is being expanded damental prerequisite for the performance of contracts with customers, further at the company’s various sites. The Zurich site also has its own especially in the oil and gas industry. Products safety circuit, which is being enhanced further year after year. The “9 vital rules” adopted in 2017 to raise awareness of safety issues were incorpo- Production Occupational health rated into the safety circuit as a component topic. Supply chain “Accident Prevention” and “Always Safe. Always Good” are two cam- With our occupational health management program, we are aiming to paigns that are being developed and rolled out hand-in-hand with all of successively systematize all health-related measures within the Company. People the occupational safety experts at the MAN Truck & Bus sites. Part of the Our health activities not only target working conditions, but also the Human resources “Safety First” strategic initiative, these campaigns will help to reduce the behaviors of the individual employees. strategy number of accidents in the long run and raise awareness of safety issues. Through our targeted occupational health measures, we encourage Attractive employer our employees to take the initiative in matters concerning their own health. This includes offerings from our annual health program such as OHSAS 18001, ISO 45001, and SCC certification Vocational and stop smoking classes, intraocular pressure examinations, flu shots, mas- other training Our occupational safety management is part of our integrated manage- sages, and a healthy eating program in cooperation with Weight Watchers. Diversity and equal ment system. The OHSAS 18001 certified management systems at our In cooperation with MAN Academy, we offer numerous training programs opportunities sites help to continuously improve the safety and health of our workforce. which reinforce employees’ personal responsibility, underpin healthy A total of 29 of our sites have been awarded the certificate for health and behavior and teamwork, and foster a leadership culture which promotes „„Occupational health and safety safety at work. Preparations are currently underway to transition the man- good health. agement system to the requirements of the new ISO 45001 standard,

Society and integrity

Annex 49 MAN 2018 GRI Report Occupational health and safety

As part of our corporate integration management program, 476 employ- In order to boost performance and well-being and to strengthen the per- Overview ees were integrated back into day-to-day working life in 2018 (2017: 453) sonal health-related skills of employees at MAN Truck & Bus, a health Foreword after prolonged absences due to illness or accidents. The MAN Checkup is room is being set up at the Munich site. Together with an external health- a preventive health initiative which is also aimed at helping employees care provider, an operator model is being developed that includes differ- Portrait remain healthy as well as identifying any potential risks at an early stage. ent course formats and health services.

Our approach At MAN Energy Solutions, the employee assistance program (EAP) is another important pillar of occupational health management. An inte- Products gral part of our HR policy for many years, EAP services include counseling during crisis situations and the development of concrete solutions. 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 50 MAN 2018 GRI Report RESPONSIBILITY FOR SOCIETY AND INTEGRITY

Our business practices are shaped by corporate responsibility (CR). It is our aim to put our Overview responsibility into practice every single day. In addition to responsible corporate governance Foreword and compliance with applicable laws, this includes open dialog with our stakeholders. Our Portrait corporate citizenship initiatives and MAN aid to refugees also enable us to make a lasting

Our approach 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 and the Code of Conduct, our guiding principles for acting with

Stakeholder dialog integrity, is the basic precondition for the success of our business. As part of its responsibility, which is also set out in the German Corporate

Corporate citizenship “Compliance and integrity are core components of MAN’s corpo- Governance Code, the Executive Board of MAN SE has established the Gov- rate strategy. Each individual employee must be aware of their individual ernance, Risk & Compliance (GRC) Organization. responsibility and make their contribution so that we can live up to our The GRC Organization is headed by the Head of GRC/Chief Compli- Annex social responsibility together and be successful in the long run. Compli- ance Officer of the MAN Group, who reports directly to the Chief Executive ance with laws, fundamental ethical values, and internal policies is a mat- Officer of MAN SE as well as to the Audit Committee of the Supervisory ter of course for all of us – regardless of when and where we work. We oper- Board. The GRC Organization is responsible for compliance and risk man- ate a zero-tolerance policy for violations of the law,” says Joachim Drees, agement issues throughout the Group. Chief Executive Officer of MAN SE and MAN Truck & Bus AG. 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 ses- sions for employees. 51 MAN 2018 GRI Report Compliance and risk management

In addition, the Corporate GRC Office carries out a specific risk analysis on Policies Overview a regular basis to identify potential compliance risks for the Group and to The GRC Organization has also developed policies on issues such as com- Foreword align and further develop the Group-wide compliance management sys- bating corruption, antitrust law, and money laundering prevention. These tem based on these risks. The Corporate GRC Office also manages risk policies represent uniform and binding requirements for all employees Portrait management processes in the divisions and is responsible for further throughout the Group.

Our approach developing the risk management measures in cooperation with the risk/ ICS (internal control system) managers. Business Partner Approval Tool Products The GRC Organization is responsible for implementing the compli- A Group-wide policy is used to check business partners providing sales ance management system and the risk management system in the Group support for compliance risks using a tool-based process before collabora- Production companies. Each subgroup has a Head of GRC/Chief Compliance Officer tion commences. In total, 1,364 checks were conducted using the Business Supply chain who is supported by compliance officers and risk/internal control system Partner Approval Tool in the reporting period. managers in the different business units/regions. People Compliance training Society and integrity Elements of the MAN compliance management system The GRC Organization conducts regular face-to-face and online training sessions on topics such as combating corruption, antitrust law, and money „„Compliance and risk management The compliance management system developed by the GRC Office laundering prevention. A new online course was developed in the year addresses the topics of white-collar crime (in particular combating cor- under review, focusing on the prevention of money laundering and terror-

Stakeholder dialog ruption, preventing money laundering, and terrorism financing) and anti- ism financing. The course is designed to raise awareness of certain high-

Corporate citizenship trust law. risk scenarios among employees who could be exposed to particular risks in this area as a result of their work, and to teach them how to deal with Code of Conduct potential regulatory violations properly. Annex Ethical principles of conduct and fundamental compliance requirements for the MAN Group are laid down in the Code of Conduct. It also spells out Compliance Helpdesk the corporate values and establishes in-house guidelines for the issue of All MAN employees can contact the Compliance Helpdesk by phone or integrity. An updated version 2.0 of the MAN Group’s Code of Conduct e-mail to obtain answers to compliance-related questions. This gives the came into force effective January 1, 2018, and was rolled out to all employ- GRC Organization an overview of frequently asked questions in order to ees worldwide. develop further preventive compliance measures as and when required. In 2018, the Compliance Helpdesk in the central GRC Organization answered 474 requests. 52 MAN 2018 GRI Report Compliance and risk management

Reporting regulatory violations Compliance measures Overview The process for dealing with potential regulatory violations, which is set out in a Group-wide policy, serves to help detect and prevent serious risks Foreword 2018 for MAN. Business Partner Approval Tool 1,364 business partners checked Portrait At MAN, all information relating to serious infringements of the 401 face-to-face sessions with 4,373 participants Compliance training sessions Our approach law, especially in the areas of white-collar crime (e.g., corruption offenses, 20,047 employees participated in online training sessions suspected money laundering activities, and terrorism financing), antitrust Compliance Helpdesk 474 questions answered by the central Compliance organization, Products law, and data protection are investigated in detail and violations are dealt another 1,972 questions answered locally with and sanctioned in line with the penalties permitted under labor law. Compliance risk analysis A horizontal compliance risk analysis was carried out in 2018 in order Production The Disciplinary Sanction Committee is the body responsible for impos- to ensure transparency regarding all of the compliance requirements that apply to the MAN Group, i.e., also those requirements that do Supply chain ing appropriate internal sanctions. In addition, findings from the investi- not fall within GRC’s central sphere of responsibility. The aim of the gation of compliance violations are used to continuously improve the project was to identify clear organizational responsibilities at group/ People subgroup level for 33 areas of legislation that were classified as appli- compliance management system. cable. Society and integrity The processes and the corresponding Group policy were updated Compliance Champions Conference In October of the year under review, more than 130 Compliance in the year under review. In addition to the Speak up! whistleblower portal, Champions and GRC employees from 45 countries met for the two- „„Compliance and risk which has been in place for a number of years, a 24/7 whistleblowing hot- day Compliance Champions Conference, which brings all TRATON management brands together. line has also been introduced. Compliance Champions – usually Chief Financial Officers of the com- Stakeholder dialog panies worldwide – support the GRC Organization in implementing compliance and integrity at the international sites and regions, and act Corporate citizenship as compliance and integrity ambassadors. The aim of the conference was to strengthen the Group-wide compli- ance network and to work together to come up with ideas for the fur- Annex ther development of the existing compliance and integrity programs and measures. Additional measures Various communication measures were used to promote integrity in 2018. These include communication measures accompanying the worldwide rollout of the updated Code of Conduct to the employees, further use of the film on integrity as one of the corporate values, the development of a Dilemma Game to encourage dealing openly with risky dilemma situations in day-to-day work, publishing GRC Alerts and GRC Newsletters on current GRC and compliance issues, as well as events at the Group companies to mark International Anti-Corrup- tion Day on December 9, 2018. 53 MAN 2018 GRI Report Compliance and risk management

Memberships In the year under review, the data protection activities of the MAN compa- Overview nies in the European Union were characterized in particular by the mea- Foreword MAN is a member of Transparency International and the German Insti- sures taken to implement the requirements of the EU General Data Pro- tute for Compliance (DICO). MAN also remains committed to the Ten Prin- tection Regulation (GDPR). As part of centrally coordinated GDPR projects Portrait ciples of the United Nations Global Compact and supports the Alliance for in the subgroups, the Group companies took an in-depth look at the orga-

Our approach Integrity, which promotes integrity in business practices. nizational, information, and documentation obligations resulting from the GDPR. This led to the implementation of newly required processes, Products Data protection structures, and documentation activities, as well as to corresponding adjustments to existing processes, structures, and activities. This allowed Production MAN stands for effective data protection in compliance with legal regula- MAN to achieve the necessary policy compliance when the GDPR entered Supply chain tions, applied worldwide based on the rigorous European standards. In into force on May 25, 2018. Processes and structures are being optimized order to meet both the statutory challenges and the challenges that MAN on an ongoing basis to ensure that the Company remains GDPR-compli- People defines for itself, the MAN Group maintains a worldwide network of data ant in the future, too. One focal point is the further development of inter- Society and integrity protection officers and coordinators who work to ensure that the data nal organizational structures and processes in accordance with the pri- protection-related privacy rights of employees, customers, suppliers, and vacy-by-design principles. „„Compliance and risk management business partners are protected. The global coordination of data protec- Developments in data protection legislation in countries outside tion activities is the responsibility of Group Data Protection, a central of Europe are also monitored and analyzed on a regular basis. The new

Stakeholder dialog organizational unit reporting directly to the Chief Executive Officer of data protection legislation in Brazil, China, South Africa, and Turkey is par-

Corporate citizenship MAN SE. ticularly relevant to the MAN companies.

Annex 54 MAN 2018 GRI Report STAKEHOLDER DIALOG

[102-40, 102-43] MAN is actively working on solutions for global freight and Dialog with policymakers and businesses Overview passenger transportation. Regular dialog with our stakeholders is an indis- Foreword pensable part of this process. After all, the expectations of the business We are actively working to develop solutions to global challenges. To this world, the political sphere, and society at large are of fundamental impor- end, we also contribute our knowledge and expertise to the ongoing polit- Portrait tance to our business success. Our focus here is on topics relevant to our ical debate. Our focus here is on topics relevant to our core business, such

Our approach core business, such as reducing worldwide CO₂ emissions caused by the as reducing worldwide CO₂ emissions caused by the transportation of transportation of goods and people. goods and people. In order to do so, we maintain an ongoing dialog with Products the responsible ministries at the national, EU, and international levels, as well as with elected representatives and opinion leaders from the govern- Production Memberships ment and the opposition. At local level, for example, the Company is Supply chain With the aim of supporting dialog and communication between industry, involved in the Munich Business Climate Pact and the Bavarian Environ- policymakers, and society, we are a member of numerous associations and mental Pact. One example of constructive cooperation at EU level was the People organizations. MAN makes an active contribution to the working groups dialog on the VECTO CO₂ simulation procedure (Vehicle Emission Calcula- Society and integrity and management committees of these associations and organizations. tion Tool). The EU’s CO₂ emission standards for heavy-duty trucks, which Our most important memberships are: were adopted in 2018, impose new obligations on European manufactur- Compliance and risk management German Association for Materials Management, Purchasing, and ers. Since January 2019, for example, a certificate showing information on Logistics fuel consumption and CO₂ emissions has been required for heavy-duty „„ Stakeholder dialog Association of German Freight Forwarders and Logistics Operators trucks in certain categories.

Corporate citizenship German Transport Forum The MAN guidelines for lobbying are defined in a Code of Conduct European Automobile Manufacturers’ Association (ACEA) which applies throughout the Group. This Code explicitly outlines our International Chamber of Commerce Germany commitment to nonpartisanship and to making our positions transpar- Annex Transparency International Germany ent. In 2018, MAN spent around €250,000 on direct lobbying activities German Association of the Automotive Industry (2017: around €250,000). The MAN Group Policy on Handling Donations German Engineering Federation and Sponsoring Measures prohibits politically motivated donations, such Bavarian Business Association as donations to political parties, party-affiliated institutions, or politi- cians. At EU level, MAN is involved in European Technology Platforms (ETPs), which are working to develop innovation and research programs that will drive sustainable and competitive mobility of people and goods. 55 MAN 2018 GRI Report CORPORATE CITIZENSHIP

Showing a commitment to our fellow human beings and the environment Refugee integration Overview is a key component of our business culture within the MAN Group. MAN Foreword sees itself as part of society and aims to contribute to sustainable develop- MAN offers refugees specific career prospects within the MAN Group. In ment. As a result, the Company is involved in a whole range of national the 2018 fiscal year, the Company integrated 99 refugees in different ways: Portrait and international projects. Corporate volunteering plays a key role in this 37 young refugees completed internships, 3 completed initial training, 31

Our approach process, and allows us to put not just one, but many different faces to our completed a vocational training program, and 28 other refugees were commitment to social responsibility. employed by the Company. Products The city of Munich pesented MAN Truck & Bus with the Prize for Civic Engagement 2018 in the Large Companies category. The prize was Production Promotion of social startups awarded, in particular, in recognition of MAN’s efforts to integrate refu- Supply chain MAN Truck & Bus supports social startups in the transportation sector gees into the labor market. The city also recognizes social commitment with the MAN Impact Accelerator program, which was launched in 2017. among employees, something that is particularly encouraged at MAN, People The focus is on solutions to global challenges such as population growth with the “Munich’s outstanding companies of 2018” (“Münchens aus- Society and integrity and urbanization. MAN is organizing the program in collaboration with gezeichnete Unternehmen 2018”) award. the Yunus Social Business Initiative launched by Nobel Peace Prize winner Compliance and risk management Muhammad Yunus. MAN’s approach involves sending its own young tal- Plurality and inclusion ents to support the young entrepreneurs in social corporate projects by

Stakeholder dialog contributing their specialist expertise, including on location. Plurality and inclusion are key prerequisites for a functioning society. This

„„Corporate citizenship is an issue that MAN is tackling from a strategic angle: in March 2017, we Social and environmental commitment signed the Diversity Charter, an initiative launched by German companies to promote diversity in the corporate sector and in institutions under the Annex Social and ecological responsibility is an integral part of MAN’s corporate patronage of Chancellor Angela Merkel. We launched a Company-wide culture. Many employees are involved in charitable projects on a volun- plurality and inclusion process by organizing an Executive Board work- tary basis, also in cooperation with the Munich Child Protection League shop in January 2019. The process is set to be rolled out throughout the (Kinderschutzbund München), SOS Children’s Villages, and the Bavarian Company in the coming years. nature conservation association (Bund Naturschutz in Bayern). Examples of measures to promote plurality and inclusion are tar- In the year under review, the number of hours that our employees geted measures to attract women to the Company, promote their career spent on voluntary work quadrupled compared with the previous year: in advancement, and ensure that they remain loyal to the Company in the 2018, 167 employees (2017: 121) spent a total of 2,890 (2017: 682) hours on long term, too. These entail programs that help employees to strike a bal- 27 projects (2017: 11). ance between work and family life, which are naturally also available to 56 MAN 2018 GRI Report Corporate citizenship

men. At the Munich site, for example, the Löwenkinder facility is offered Education in Africa Overview as a company daycare center. Another priority area is promoting mixed- Foreword age teams, allowing fresh expertise and long-standing professional expe- MAN believes that solid education and training is one of the key prerequi- rience to be combined effectively. Other essential aspects from MAN’s per- sites for finding a way out of poverty. By way of example, the Company Portrait spective include offering its employees appropriate working conditions supports various school and training projects organized by SOS Children’s

Our approach for as long as possible, and promoting a general willingness to engage in Villages for disadvantaged children and young people in Africa, among lifelong learning (, see also the chapter entitled Responsibility for people, other places. Products page 36). MAN also provides support for an educational project in Burkina Faso backed by Missio, the development aid organization of the German Production Donations Bishops’ Conference. In 2017, the MAN Group contributed €35,000 to sup- Supply chain port the expansion of a girls’ school in the rural area of Fada N’Gourma. All donations and sponsorship activities must comply with our manda- The second stage of construction was completed in 2018. This reflects People tory, Group-wide policy. Our donation activities tend to be closely related MAN’s commitment to central CR issues – combating poverty, promoting Society and integrity to our core business, and cover areas such as education, academia, culture, diversity, equal opportunities, human right to education. and social affairs (social welfare, charitable and humanitarian projects, Compliance and risk management and disaster relief). Charitable health care

Stakeholder dialog The collaboration with the nongovernmental organization Mercy Ships – Donations „„Corporate citizenship a health care charity that operates worldwide – was reaffirmed in 2018 with the conclusion of a new sponsoring agreement; MAN had already con- cluded the first cooperation agreement with this NGO in 2016. Mercy Annex was€757,400 the amount that the MAN Group donated Ships uses its hospital ship, the Africa Mercy, to provide free state-of-the- to support charitable projects in 2018 art medical services to people with no regular access to health care. The agreement between MAN Energy Solutions and Mercy Ships pledges the annual provision of spare parts for the four engines of the Africa Mercy in the amount of €250,000. 57 MAN 2018 GRI Report Corporate citizenship

Promotion of culture their university. Particular emphasis is placed on supporting students in Overview the fields of mechanical engineering, electrical engineering, and com- Foreword MAN Energy Solutions has been the main sponsor of the Augsburg Phil- puter science, as well as on other skills of the future relating to new tech- harmonic Orchestra since as far back as 2012. Annual funds of €60,000 are nologies such as electric mobility, autonomous driving, or digital net- Portrait used to recruit renowned soloists to give guest performances. working and energy informatics. We collaborate with almost 100 technical

Our approach universities around the world in total.

Products Scholarships Since 2011, MAN has supported approximately 450 recipients of the Ger- Production many Scholarship, which opens up educational opportunities to high-per- Supply chain forming students regardless of their social background and the location of

People

Society and integrity

Compliance and risk management

Stakeholder dialog

„„Corporate citizenship

Annex 58 MAN 2018 GRI Report Annex OVERVIEW OF KEY INDICATORS

Overview Financial figures

Foreword Financial figures¹ Employees by business area

Portrait in € million 2017 2018 2016 2017 2018 Sales revenue 11,087 12,104 Commercial Vehicles 36,777 37,501 38,204 Our approach Order intake 12,397 13,913 Power Engineering 16,808 16,553 17,046 Products Operating profit 358 332 Others 239 243 226 1 [102-48] The financial figures are shown excluding the operations that were discontinued effective December 31. Prior-year figures have been MAN Group 53,824 54,297 55,476 Production adjusted.

Supply chain Women in management positions

People Employee figures 2016 2017 2018 Women in management (MK) 4 4 6 Society and integrity Employee structure¹ Women in senior management (OMK) 32 35 34 Annex 2016 2017 2018 Women in top management (TMK) 92 98 109 „„Overview of key Permanent staff 49,982 50,455 51,428 Total 128 137 149 indicators of which women 6,758 6,878 7,116 Share as a % 9.2 9.3 9.2 of which men 43,224 43,577 44,312

GRI Content Index and UN of which part-time employees 1,250 1,349 1,669 Global Compact Number of lost-time injuries¹ of which women2 – – 1,155 Communication on of which men2 – – 514 Progress 2016 2017 2018 of which employees on fixed-term contracts 1,881 1,992 2,312 Number of lost-time injuries² 835 790 726 Independent Practitioner’s of which women2 – – 328 Limited Assurance Report Accident frequency index³ 13.5 12.7 13.0 of which men2 – – 1,984 Accident severity index4 16.6 16.7 14.8 Vocational trainees 3,145 3,132 3,279 About this report 1 Lost-time injuries affecting permanent staff in production or at production-related sites (incl. Dachau, Salzgitter (warehouse), Plauen, of which women 547 559 537 and Holeby) Credits and of which men 2,598 2,573 2,742 2 In accordance with the Sozialgesetzbuch (SGB — German Social Code), lost-time injuries are defined as injuries incurred by the insured while car- additional information rying out their insured employment. of which: Germany 2,245 2,169 2,157 We count lost-time injuries starting at one day of missed work. Employees, passive partial retirement 697 710 769 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 calculat- ing the index is the number of workplace accidents multiplied by 1 million divided by hours worked. Headcount 53,824 54,297 55,476 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 Subcontracted employees 1,562 2,584 3,197 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. 1 at the end of the year in each case ² figures broken down by gender for the first time in 2018 59 MAN 2018 GRI Report Annex – Overview of key indicators

Expenditure on materials Overview Environmental figures in € million 2016 2017 2018 Foreword Energy consumption1 Expenditure on raw materials, auxiliaries, con- 6,532 6,749 7,992 sumables, and procured supplies Portrait in MWh 2016 2017 2018 CV PE Direct energy consumption 647,206 678,696 687,473 458,887 228,586 Expenditure on procured services 460 358 405 Our approach (combustion fuels and gases) Total 6,992 7,108 8,396 Products Indirect energy consumption 719,905 698,604 720,643 535,657 184,986 Electrical energy 458,185 446,460 475,515 336,849 138,666 Production Water consumption and wastewater volume¹ Thermal energy 261,720 252,144 245,128 198,808 46,320 Supply chain Total 1,367,111 1,377,300 1,408,116 994,544 413,572 in m3 2016 2017 2018 CV PE 1 As of 2016, non-production sites are longer included in the reporting framework. CV: Commercial Vehicles Total freshwater 7,649,195 8,952,647 9,464,280 5,746,327 3,717,954 People PE: Power Engineering from external sources 865,332 859,378 820,213 629,393 190,821 (incl. drinking water) Society and integrity from own abstraction 6,783,863 8,093,269 8,644,067 5,116,934 3,527,133 CO reductions from implementing MAN’s Climate Strategy1 Annex 2 (incl. well water)

„„Overview of key CO2 emissions in tons Baseline: 2008 2018 Reduction in % Surface water from lakes, rivers, 8,637,958 7,440,450 8,096,781 164,673 7,932,108 indicators Commercial Vehicles 401,800 275,543 –31.4 and the sea MAN Truck & Bus 374,600 265,710 –29.1 Wastewater 1,307,620 1,268,790 1,259,465 839,128 420,337 GRI Content Index and UN MAN Latin America 27,200 9,833 –63.8 1 As of 2016, non-production sites are longer included in the reporting framework. CV: Commercial Vehicles Global Compact PE: Power Engineering Communication on Power Engineering 142,800 127,683 –10.6 Progress MAN Energy Solutions 122,800 104,965 –14.5 Atmospheric pollutants Renk 20,000 22,718 +13.6 Independent Practitioner’s Limited Assurance Report Total 544,600 403,226 –26.0 in tons 2016 2017 2018 CV PE 1 Figures rounded up or down, including additional reduction measures and premium for voluntarily limiting the offsetting of purchased green Sulfur dioxide (SO2) 0.94 1.00 0.87 0.68 0.19 About this report electricity Nitrogen oxides (NOX ) 320 378 370 263 107 Credits and Particulates 1.39 1.36 1.35 1.08 0.27 additional information Volatile organic 778 792 885 821 64 compounds (VOC)

CV: Commercial Vehicles PE: Power Engineering 60 MAN 2018 GRI Report Annex GRI CONTENT INDEX AND UN GLOBAL COMPACT COMMUNICATION ON PROGRESS

This report has been prepared in accordance with the GRI Standards: Core Overview option. For the Materiality Disclosures Service, GRI Services reviewed that Foreword the GRI content index is clearly presented and the references for Disclo- sures 102-40 to 102-49 align with appropriate sections in the body of the Portrait report. The service was performed on the German version of the report.

Our approach

Products GRI Standards Page/Annotation UNGC Production GRI 101 Foundation 2016 Supply chain GRI 102 General Disclosures 2016 Organizational profile People GRI 102-1 Name of the organization MAN SE Society and integrity GRI 102-2 Activities, brands, products, and services 4/5, AR I, 25/26 GRI 102-3 Location of headquarters Munich, Germany Annex GRI 102-4 Location of operations 3/4; AR 25 Overview of key GRI 102-5 Ownership and legal form 5 indicators GRI 102-6 Markets served 4/5 GRI 102-7 Scale of the organization 3–5, 24; AR III „„GRI Content Index and UN Global Compact GRI 102-8 Information on employees and other workers 41 6 Communication on GRI 102-9 Supply chain 32 Progress GRI 102-10 Significant changes to the organization and its supply chain 4, 67

Independent Practitioner’s GRI 102-11 Precautionary Principle or approach 6/7, 10, 32, 47, 51; AR 45–54 Limited Assurance Report GRI 102-12 External initiatives 7, 37, 45, 53 GRI 102-13 Membership of associations 54 About this report Strategy Credits and GRI 102-14 Statement from senior decision-maker 1/2 additional information Ethics and integrity GRI 102-16 Values, principles, standards, and norms of behavior 33, 37, 51 10 Governance GRI 102-18 Governance structure 7, 50; AR 10/11, 15/16

AR = 2018 Annual Report | UNGC = UN Global Compact 61 MAN 2018 GRI Report Annex – GRI Content Index

Overview GRI Standards Page/Annotation UNGC

Foreword Stakeholder engagement GRI 102-40 List of stakeholder groups 8, 54, 67 Portrait GRI 102-41 Collective bargaining agreements 40 3 GRI 102-42 Identifying and selecting stakeholders 8 Our approach GRI 102-43 Approach to stakeholder engagement 7/8, 39, 54 Products GRI 102-44 Key topics and concerns raised 8/9 Reporting practice Production GRI 102-45 Entities included in the consolidated financial statements 67; AR 78 Supply chain GRI 102-46 Defining report content and topic Boundaries 7/8, 67 GRI 102-47 List of material topics 9, 61–64 People GRI 102-48 Restatements of information 58 Society and integrity GRI 102-49 Changes in reporting 7, 9 GRI 102-50 Reporting period 67 Annex GRI 102-51 Date of most recent report 67 Overview of key GRI 102-52 Reporting cycle 67 indicators GRI 102-53 Contact point for questions regarding the report 68 GRI 102-54 Claims of reporting in accordance with the GRI Standards 60, 67 „„GRI Content Index and UN Global Compact GRI 102-55 GRI content index 60–64 Communication on GRI 102-56 External assurance 65/66 Progress

Independent Practitioner’s [102-47] Material Topics Limited Assurance Report GRI 200 Economic GRI 205 Anti-Corruption 2016 About this report GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 50–52 Credits and GRI 205-1 Operations assessed for risks related to corruption 51/52 additional information GRI 205-2 Communication and training about anti-corruption policies and procedures 51/52 10 GRI 206 Anti-competitive Behavior 2016 GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 50–52 GRI 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices AR 119–121

AR = 2018 Annual Report | UNGC = UN Global Compact 62 MAN 2018 GRI Report Annex – GRI Content Index

Overview GRI[102-47] Standards GRI Standards Page/Annotation UNGC

Foreword GRI 300 Environmental GRI 302 Energy 2016 7, 8, 9 Portrait GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 11–13, 23, 25/26, 29 GRI 302-1 Energy consumption within the organization 25, 59 7, 8 Our approach GRI 302-3 Energy intensity 25 8 Products GRI 302-4 Reduction of energy consumption 26 8, 9 GRI 302-5 Reduction in energy requirements of products and services 13 8, 9 Production GRI 305 Emissions 2016 7, 8, 9 Supply chain GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 10–13, 23, 25/26, 29 GRI 305-1 Direct (Scope 1) GHG emissions 23, 26 7, 8 People GRI 305-2 Energy indirect (Scope 2) GHG emissions 23, 26 7, 8 Society and integrity GRI 305-3 Other indirect (Scope 3) GHG emissions 27/28 7, 8 GRI 305-4 GHG emissions intensity 26 8 Annex GRI 305-5 Reduction of GHG emissions 26–28, 59 8, 9

Overview of key GRI 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions 31 7, 8 indicators GRI 307 Environmental Compliance 2016 8 GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 23 „„GRI Content Index and UN Global Compact GRI 307-1 Non-compliance with environmental laws and regulations 31 8 Communication on GRI 308 Supplier Environmental Assessment 2016 Progress GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32–35/36

Independent Practitioner’s GRI 308-1 New suppliers that were screened using environmental criteria 33 8 Limited Assurance Report GRI 400 Social GRI 401 Employment 2016 About this report GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 36–38 Credits and GRI 401-1 New employee hires and employee turnover 42 6 additional information

AR = 2018 Annual Report | UNGC = UN Global Compact 63 MAN 2018 GRI Report Annex – GRI Content Index

Overview GRI[102-47] Standards GRI Standards Page/Annotation UNGC 1, 6 Foreword GRI 403 Occupational Health and Safety 2016 GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 47–49 Portrait GRI 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of 47; work-related fatalities The absence rate and the information Our approach regarding gender are not currently dis- closed. The collection of corresponding Products data is planned. GRI 404 Trainingand Education 2016 6 Production GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 36–39, 43/44 Supply chain GRI 404-1 Average hours of training per year per employee 44; The information by employee category People and gender is not currently disclosed. The collection of corresponding data is planned. Society and integrity GRI 404-2 Programs for upgrading employee skills and transition assistance programs 44 Annex GRI 405 Diversity and Equal Opportunity 2016 1, 6 GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 36/37, 45/46 Overview of key indicators GRI 405-1 Diversity of governance bodies and employees 41, 45/46; AR 8/9, 21/22, 148–151 6 GRI 407 Diversity of governance bodies and employees 2016 „„ GRI Content Index and UN GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32/33, 37, 40 Global Compact Communication on GRI 407-1 Operations and suppliers in which the right to freedom 32, 34, 40 2, 3 Progress GRI 408 Child Labor 2016 GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32/33, 37 Independent Practitioner’s GRI 408-1 Operations and suppliers at significant risk for incidents of child labor 32, 34 2, 5 Limited Assurance Report GRI 409 Forced or Compulsory Labor 2016

About this report GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32/33, 37 GRI 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor 32, 34 2, 4 Credits and additional information

AR = 2018 Annual Report | UNGC = UN Global Compact 64 MAN 2018 GRI Report Annex – GRI Content Index

Overview GRI[102-47] Standards GRI Standards Page/Annotation UNGC

Foreword GRI 414 Supplier Social Assessment 2016 GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32–35, 51 Portrait GRI 414-1 New suppliers that were screened using social criteria 33 GRI 415 Public Policy 2016 Our approach GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 54 Products GRI 415-1 Political contributions 54 GRI 416 Customer Health and Safety 2016 Production GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 12, 21 Supply chain GRI 416-1 Assessment of the health and safety impacts of product and service categories 20/21 GRI 419 Socioeconomic Compliance 2016 People GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 50–52 Society and integrity GRI 419-1 Non-compliance with laws and regulations in the social and economic area AR 119–121

Annex Further Disclosures1 Overview of key GRI 201-1 Direct economic value generated and distributed 5, 55/56; AR 32 indicators GRI 201-2 Financial implications and other risks and opportunities due to climate change 10 7 GRI 201-3 Defined benefit plan obligations and other retirement plans 39; AR 93–96 „„GRI Content Index and UN Global Compact GRI 301-1 Materials used by weight or volume 30 7, 8 Communication on GRI 303-1 Water withdrawal by source 30/31 Progress GRI 306-1 Water discharge by quality and destination 31 8

Independent Practitioner’s GRI 306-2 Waste by type and disposal method 30 8 Limited Assurance Report GRI 306-4 Transport of hazardous waste 30 8 GRI 406-1 Incidents of discrimination and corrective actions taken 40 6 About this report GRI 417-1 Requirements for product and service information and labeling 22 Credits and additional information

1 The information outlined under “Further Disclosures” is comprised of issues that were deemed immaterial as part of the 2018 materiality analysis. Nevertheless, these were disclosed for transparency reasons. They form part of the following standards: GRI 201: Economic Performance 2016; GRI 301: Materials 2016; GRI 303: Water 2016; GRI 306: Effluents and Waste 2016; GRI 406: Non-discrimination 2016; and GRI 417: Marketing and Labelling 2016. AR = 2018 Annual Report | UNGC = UN Global Compact 65 MAN 2018 GRI Report Annex INDEPENDENT PRACTITIONER’S REPORT ON A LIMITED ASSURANCE ENGAGEMENT ON SUSTAINABILITY INFORMATION¹

To MAN SE, Munich tute of Public Auditors in Germany; IDW): Requirements to quality control Overview for audit firms (IDW Qualitätssicherungsstandard 1: Anforderungen an die Foreword We have performed a limited assurance engagement on the disclosures Qualitätssicherung in der Wirtschaftsprüferpraxis – IDW QS 1) – and denoted with in the CR-Report 2018 of MAN SE, Munich (hereinafter: accordingly maintains a comprehensive system of quality control includ- Portrait “the Company”), for the period from 1 January to 31 December 2018 (here- ing documented policies and procedures regarding compliance with ethi-

Our approach inafter: “CR-Report”). Our engagement in this context relates solely to the cal requirements, professional standards and applicable legal and regula- disclosures denoted with the symbol . tory requirements. Products

Production Responsibilities of the Executive Directors Practitioner’s Responsibility The executive directors of the Company are responsible for the prepara- Our responsibility is to express a limited assurance conclusion on the dis- Supply chain tion of the CR-Report in accordance with the criteria as set out in the Sus- closures denoted with in the CR-Report based on the assurance engage- tainability Reporting Standards of the Global Reporting Initiative (herein- ment we have performed. People after: “GRI-Criteria”) and for the selection of the disclosures to be evaluated. We conducted our assurance engagement in accordance with the Society and integrity This responsibility of Company’s executive directors includes the International Standard on Assurance Engagements (ISAE) 3000 (Revised): selection and application of appropriate methods of sustainability report- Assurance Engagements other than Audits or Reviews of Historical Finan- Annex ing as well as making assumptions and estimates related to individual sus- cial Information, issued by the IAASB. This Standard requires that we plan Overview of key tainability disclosures, which are reasonable in the circumstances. Fur- and perform the assurance engagement to allow us to conclude with lim- indicators thermore, the executive directors are responsible for such internal control ited assurance that nothing has come to our attention that causes us to

GRI Content Index and UN as they have considered necessary to enable the preparation of a Report believe that the disclosures denoted with in the Company’s CR-Report Global Compact that is free from material misstatement whether due to fraud or error. for the period from 1 January to 31 December 2018 has not been prepared, Communication on in all material aspects, in accordance with the relevant GRI-Criteria. This Progress Independence and Quality Control of the Audit Firm does not mean that a separate conclusion is expressed on each disclosure „„Independent Practitioner’s Our audit firm applies the national legal requirements and professional so denoted. Limited Assurance Report standards – in particular the Professional Code for German Public Audi- In a limited assurance engagement the assurance procedures are tors and German Chartered Auditors (“Berufssatzung für Wirtschafts- less in extent than for a reasonable assurance engagement and therefore a About this report prüfer und vereidigte Buchprüfer”: “BS WP/vBP”) as well as the Standard substantially lower level of assurance is obtained. The assurance proce- Credits and on Quality Control 1 published by the Institut der Wirtschaftsprüfer (Insti- dures selected depend on the practitioner’s judgment. additional information

¹ PricewaterhouseCoopers GmbH has performed a limited assurance engagement on the German version of the CR-Report 2018 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. 66 MAN 2018 GRI Report Annex – 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 from 1 January to 31 December 2018 have not been prepared, in all

Our approach tem and selected sustainability information material 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 pany. The assurance engagement has been performed for purposes of the Supply chain CR-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 Energy Solutions SE, Augsburg, Germany responsibility towards third parties. Annex – MAN Energy Solutions SE, Deggendorf, Germany Overview of key – MAN Truck & Bus AG, Nuremberg, Germany Munich, 5 June 2019 indicators – MAN Truck & Bus AG, Steyr, Austria (webmeeting)

GRI Content Index and UN – MAN Türkiye A.Ş., Ankara, Turkey PricewaterhouseCoopers GmbH Global Compact Wirtschaftsprüfungsgesellschaft Communication on Analytical procedures on selected sustainability information of the Progress CR-Report Klaus Schuster Hendrik Fink „„Independent Practitioner’s Wirtschaftsprüfer Wirtschaftsprüfer Limited Assurance Report Assessment of the presentation of selected sustainability information (German Public Auditor) (German Public Auditor) in the CR-Report regarding the sustainability performance About this report

Credits and Comparison of selected disclosures with corresponding data in the additional information consolidated financial statements and in the group management report 67 MAN 2018 GRI Report Annex ABOUT THIS REPORT

[102-40] Since 2011, each year we have provided our stakeholders with Report audit Overview information about our progress in implementing our corporate responsi- We voluntarily submitted our 2018 GRI Report to a comprehensive inde- Foreword bility (CR) strategy. This 2018 GRI Report is aimed at analysts, investors, pendent audit by PricewaterhouseCoopers (PwC), which was conducted in customers, and business partners. It presents relevant management accordance with the International Standard on Assurance Engagements Portrait approaches, measures, indicators, and data related to sustainable business (ISAE) 3000 (revised) (, pages 65f.). The focus of the audit was on employee Our approach practices in the MAN Group. Furthermore, it outlines the ways in which we and environmental indicators in production operations. The verified con- live up to our commitment to the Ten Principles of corporate responsibil- tent is marked in the report with a symbol. Products ity defined by the UN Global Compact. An interactive abridged version of the report is available online. Production Scope [102-45] The 2018 reporting period is identical with the 2018 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 15, 2019. An annual reporting cycle applies. The 2017 People egy: responsibility for products, responsibility in production, responsibil- GRI Report was published in June 2018. Unless otherwise specified, the Society and integrity ity in the supply chain, responsibility for people, and responsibility for facts and figures published in this report relate to the entire MAN Group society and integrity. In each of the five chapters, we discuss the manage- (MAN SE including subsidiaries, but excluding joint ventures, associated Annex ment approaches taken in the relevant area of action, as well as measures companies, and financial investments). Overview of key taken and progress made in 2018. MAN SE’s Power Engineering business (Renk and MAN Energy indicators Solutions) was sold to a subsidiary of Volkswagen AG at the end of 2018 at

GRI Content Index and UN Report standard the instructions of TRATON SE. Data and facts on the Power Engineering Global Compact [102-46] This report was prepared in accordance with the GRI Standards: business area are included in this report for the last time. Communication on Core option. MAN’s CR reporting was preceded by a process of materiality Progress analysis which also took stakeholder views into account – as described on Editorial information Independent Practitioner’s pages 7f. The GRI Content Index outlines our compliance with the relevant In the interests of readability, we have not used the full legal names of Llimited Assurance Report GRI indicators (, pages 60ff.), and represents our UN Global Compact MAN SE and its subgroups. Communication on Progress. „„About this report

Credits and additional information 68 MAN 2018 GRI Report Annex CREDITS AND ADDITIONAL INFORMATION

Overview Credits Further information

Foreword Published by MAN SE Portrait Corporate Responsibility CORPORATE RESPONSIBILITY AT MAN Our approach Dachauer Strasse 641 2018 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 Global Corporate Website

People Senior Vice President MAN Truck & Bus Corporate Responsibility Society and integrity Phone: +49 89 36098-226 MAN Energy Solutions E-mail: [email protected] Annex SOCIAL MEDIA Overview of key Editorial deadline MAN Truck & Bus Twitter indicators May 15, 2019 MAN Truck & Bus Facebook GRI Content Index and UN Global Compact Copyright MAN Energy Solutions Twitter Communication on © 2019 MAN SE Progress MAN Energy Solutions Facebook

Independent Practitioner’s Concept, texts, and layout Limited Assurance Report akzente kommunikation und beratung GmbH, Munich

About this report

„„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