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Sustainability Report MTU Aero Engines AG MTU Aero Engines AG Dachauer Straße 665 80995 Munich • Germany Tel Sustainability Report MTU Aero Engines AG MTU Aero Engines AG Dachauer Straße 665 80995 Munich • Germany Tel. +49 89 1489-0 Fax +49 89 1489-5500 [email protected] www.mtu.de GER 06/18/MUC/00000/DE/XX/E 2 Table of contents Foreword by the Chief Executive Officer ..................................... 5 About this report ............................................................................... 6 MTU Aero Engines AG ..................................................................... 8 1 Sustainable governance 10 1.1 Sustainability strategy and organization ............................... 11 1.2 Compliance and human rights................................................. 20 2 Responsibility for products and 24 for the supply chain 2.1 Product quality and flight safety ............................................. 25 2.2 Eco-efficient engines .................................................................. 29 2.3 Responsibility for the supply chain ....................................... 36 3 Environmental protection in production 40 3.1 Operational environmental protection ................................... 41 3.2 Energy and emissions ................................................................ 44 3.3 Water ............................................................................................. 50 3.4 Material efficiency and waste .................................................. 52 4 Employees and society 56 4.1 Occupational health and safety................................................ 57 4.2 Responsible and attractive employer...................................... 60 4.3 Employee development ............................................................. 65 4.4 Diversity and equal opportunities .......................................... 69 Masthead 4.5 Corporate Social Responsibility............................................... 72 Publisher MTU Aero Engines AG Eckhard Zanger Goals set and achieved in 2017 ...................................................... 76 Senior Vice President Corporate GRI-Index ............................................................................................ 81 Communications and Public Affairs Project management and contact point for questions regarding content Ute Schwing Senior Manager Corporate Online Services, Internal Communications and CR [email protected] www.mtu.de Photo credits Cover Airbus Page 2 jetBlue Airways Pages 4-5 MTU Aero Engines Pages 8-9 jetBlue Airways, Airbus, Boeing, IAE, MTU Aero Engines Pages 10 Airbus Pages 14-23 MTU Aero Engines Pages 24-25 MTU Aero Engines, Airbus Pages 26-28 MTU Aero Engines Page 29 Embraer Pages 31-34 MTU Aero Engines Page 35 Bauhaus Luftfahrt, MTU Aero Engines Lufthansa, Pratt & Whitney Pages 39-75 MTU Aero Engines Geared Turbofan™ is a registered trademark of von Pratt & Whitney. 3 4 Foreword by the Chief Executive Officer Dear readers, For us, “Clean Air” is more than just a slogan. As we We also have our eye on the supply chain: Our man- shape the future of aviation, we see it as our core datory social and environmental standards place responsibility to work with our partners to develop important sustainability demands on our suppliers. and to bring fuel-efficient, low-emission, quiet engines to market. We already brought you up to speed on Digitalization and technological transformation are this and other select issues in our first non-financial increasingly shaping working life at MTU, and so statement in the 2017 Annual Report. However, this we are also training our employees to be equipped new legal reporting obligation is not the reason for their long-term effects. We secure the employ- sustainability is important to us. For years now, we ability of our workforce primarily through high- have been in dialog with our stakeholders and have quality and comprehensive training, and create an produced an annual sustainability report outlining attractive and safe working environment based on our far-reaching sustainability strategy and the pro- important social standards. We value a corporate gress we have made with it. We plan to intensify culture that promotes innovation. Clear and reliable our efforts in this regard. leadership plays a key role in this, as does diversity and equal opportunity. After all, we rely on each With our Clean Air Engine program, we and every one of our 10,000 employees around the aim to play a key role in the sustainable world. Their ideas, their skills and their commitment development of the environment and so- are the decisive foundation for our success. ciety in the years up through 2050. Our objective is to cut CO2 emissions from air- Thank you for your interest in our sustainability craft engines by up to 40 percent, and their activities and strategies. In this report, you will learn noise emissions by as much as 65 percent. what we have achieved on our path towards a And we are confident that we will succeed: more sustainable world and what we have planned the new PW1000G Geared Turbofan™ en- for the future. gine family signals the start of our journey towards an innovative and sustainable We hope you will join us on this journey! future for aviation. It already reduces CO2 emissions by 16 percent, lowers noise by 40 percent, and has entered regular service with some 20 customers. We achieved important goals this financial year as we Reiner Winkler drove our eco-efficient technology forward: further Chief Executive Officer engine designs for new aircraft models have MTU Aero Engines AG either been certified or flown for the first time. And in keeping with our Clean Air Engine Agenda, we have applied additional innovations to make the geared turbofan even better. All this is quite simply part and parcel of our responsibility as Germany’s leading engine manufacturer and globally active partner. With our Clean Air Industrial Site program, we plan to lower CO2 emissions at our Munich location by 25 percent. After all, we are tackling the challenges of climate change and resource scarcity not only in our product responsibility, but along the entire value chain. Our manufacturing facilities employ energy-efficient, low-emission processes that we continuously strive to improve, and with our state-of-the-art co-generation plant, we are producing more of our own carbon-neutral energy than ever before. 5 About this report MTU Aero Engines AG Communication on Progress 2017 Sustainability Report for UN Global Compact MTU Aero Engines AG has compiled this sustain- This Sustainability Report also provides infor- ability report to inform its stakeholders about mation on progress made in accordance with corporate responsibility (CR) within the company. the ten principles of the UN Global Compact. The report provides information about the com- Cross-references to those principles can be pany’s CR strategy, objectives and performance found in the GRI Index at the end of the report. and describes the priorities and progress for the various spheres of CR activity in 2017. It builds on the previous report and supplements our Reporting period and scope first non-financial statement in the 2017 Annual Report. of validity The Sustainability Report is available on our The reporting period covers financial year 2017 website for download as a PDF in both German (January 1 to December 31, 2017). To better and English. organize how information is presented and pro- >MTU Sustainability Report (German) vide explanatory context for readers, activities >MTU Sustainability Report (English) from outside the reporting period are also cited in some cases. The report covers all of the MTU Readers can address questions about the report Group sites that are treated as fully consolidated to [email protected] in the company’s financial reporting. This includes: • MTU Aero Engines AG, Munich, Germany Reporting in accordance (headquarters, OEM business) • MTU Maintenance Hannover, Germany with GRI (MRO business) • MTU Maintenance Berlin-Brandenburg, The 2017 Sustainability Report was drawn up in Ludwigsfelde, Germany (MRO business) compliance with the Global Reporting Initiative • MTU Aero Engines Polska, Rzeszów, Poland (GRI) guidelines and meets the GRI G4 standard (OEM business) (“Core” option). Accordingly, we report on all • MTU Maintenance Lease Services B.V., required standard disclosures as well as on man- Amsterdam, Netherlands (MRO business) agement approaches for key aspects and on • MTU Maintenance Canada, Vancouver, selected indicators for each aspect. The GRI Index Canada (MRO business) at the end of the report indicates how the con- • MTU Aero Engines North America, Rocky Hill, tents are mapped to the GRI requirements. Tables, USA (OEM business) graphics and text passages with statements • Vericor Power Systems, Alpharetta, USA relevant to GRI have been appropriately marked (OEM business) (for example, GRI G4-EN1). A materiality matrix in Chapter 1.1, Sustainability strategy and organi- Overview of MTU sites: www.mtu.de zation, presents the sustainability topics that are relevant for the MTU Group and shows how The 2017 information and key performance they are weighted from an internal (x-axis) and indicators in the report refer to the above group external (y-axis) perspective. It serves as the reporting entity, if not otherwise indicated. basis for selecting the key aspects and perfor- There were no significant year-on-year changes mance indicators for this report. in the company’s supply chains in 2017. 6 Key performance indicators Forward-looking statements (KPIs)
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