SWM Sustainability Report 2020

Stadtwerke München Sustainability Report 2020 2020 The pulse of Munich Sustainability Report For a sustainable Munich From 2025 onwards, By 2040 at the latest, we will By 2035, we will fully convert we will generate sufficient ensure CO2-neutral coverage MVG buses to battery- green electricity in our of Munich’s demand for dis- electric drives. own plants to cover all of trict heating, mainly relying Munich’s consumption. on deep geothermal energy. By 2030, we will convert 75 % Our aspiration is to become By 2040, we will achieve CO2- of our vehicle fleet (passenger one of the top 5 employers in neutral operation of all public cars and light commercial the region by 2025. pools in Munich. vehicles) to electromobility. Contents We will support the city of 02 – 03 Foreword Munich in the achievement 04 – 07 Stadtwerke München — a portrait of its climate goals in the 08 – 13 Sustainability management areas of mobility and energy. 14 – 27 Essential services and product responsibility 28 – 37 Operational environmental protection 38 – 51 Employees 52 – 55 Corporate governance 56 – 58 About this report 58 – 62 GRI Content Index 2 SUSTAINABILITY REPORT 2020 STADTWERKE MÜNCHEN Foreword Dear readers, While the topic of sustainability has attracted society’s attention for quite some time, the concept of “resilience” has gained wider popularity during the Covid-19 pandemic. In the context of organisations, resilience describes the ability to efficiently address disruptions and, during times of change, adopt a positioning that allows the organisation to keep key structures and functions intact. Together, sustainability and resilience are a strong team — and this also describes Stadtwerke München. We have always proven that we live up to our responsibility even under the most difficult circumstances — and this is especially true during this pandemic: we are keeping the city running. The citizens of Munich and the metropolitan region can rely on safe and secure energy and water supply at all times. MVG is ensuring their continued mobility in an environmentally benign manner. And M-net’s powerful communications solutions are making productive work possible for many people. With comprehensive protection measures — accompanied by transparent and compassionate communications — we are moreover fulfilling our duty of care for our employees, who are doing an extraordinary job in the prevailing environment. Our successful crisis management is not the only joint effort we can all be proud of, however. We have also consistently stayed on course in our large projects for the future. First and foremost, mention must made of our renewable energies expansion campaign, which we will continue beyond 2025 given the prospect of a further increase in electricity demand in Munich. From 2025 onwards, we want to permanently generate sufficient green electricity in our own plants to cover all of Munich’s consumption. Further impor- tant ambitions on our agenda continue to be CO2-neutral operation of district heating and our bus fleet, major infrastructure projects in local public SUSTAINABILITY REPORT 2020 STADTWERKE MÜNCHEN 3 Foreword From left to right: Dr Florian Bieberbach, Werner Albrecht, Ingo Wortmann, Helge-Uve Braun transport, and the further expansion of our powerful fibre-optic network. In all these endeavours, we recently reached or are on the verge of major milestones. We have also made pleasing progress in our sustainability management: pro- ject teams throughout the Group are working on an even more sustainable and resilient positioning of SWM, from the strategic level to data capturing and analysis. Initial results have already been incorporated in this report. For example, we used a structured process to take an in-depth look at our impact on the United Nations’ Sustainable Development Goals. You can therefore rest assured: SWM is working diligently and purposefully on the sustainable future of the Munich metropolitan region and achieving great success. We look forward to your continued support of our endeavors. Sincerely yours Dr Florian Bieberbach Werner Albrecht Ingo Wortmann Helge-Uve Braun Chief Executive Officer Director, Personnel Director, Mobility Director, Technology and Social Affairs Stadtwerke München — a portrait As one of Germany’s largest municipal companies, we while ensuring sustainability at the same time. We are are a major contributor to the quality of life of the fair-minded and seek to achieve mutual benefits in our people in Munich and the metropolitan region. From relation ships with customers, suppliers, and business reliable energy and water supply to state-of-the-art partners. We keep an eye on our independence and urban mobility and fast Internet to Munich’s public exercise due diligence in all of our ventures. swimming pools, we offer award-winning services at fair prices. Our business segments We are committed to satisfying our customers with high-quality services and active relationship manage- We manage our business across all segments of the value ment. We embrace economic success while protecting chain: Energy – subdivided into Generation, Networks, natural resources and the environment. We make ambi- Sales, and Trade –, Water, Mobility, Telecommunications, tious investments in supply and infrastructure facilities and Public Pools. Energy Water Mobility Telecommunications Public Pools SUSTAINABILITY REPORT 2020 STADTWERKE MÜNCHEN 5 Stadtwerke München — a portrait Energy deployment of our generation plants and the expansion Generation and operation of our virtual power station. Furthermore, We generate electricity and heat in Munich and the Trade gives Energy Generation, Sales, and individual SWM metropolitan region in approximately 70 plants, including majority shareholdings access to the energy markets. wind, hydroelectric, and solar energy plants, energy- efficient combined heat and power (CHP) plants, and Water geothermal plants. In addition, we operate wind parks Our additive-free M-Wasser drinking water is extracted and solar energy plants throughout Germany and Europe naturally and delivered from the foothills of the Bavarian at sites with lots of wind and sunshine. Since 2004, we Alps to Bavaria’s capital. It boasts excellent analytical have also provided district cooling, for which we use the results that are significantly better than the statutory natural cold temperature of groundwater and Munich’s limits. In fact, M-Wasser ranks among the best drinking underground streams. waters in Europe. We satisfy the water demand of more than 1.5 million people. To safeguard a secure and affordable natural gas supply for Munich, we also engage in gas production in North- Mobility western Europe via our shareholdings in Bayerngas Together with our MVG subsidiary, we are committed to GmbH (Bayerngas) and Spirit Energy Limited (Spirit Energy). providing state-of-the-art and environmentally benign Our activities in the gas extraction business reduce our mobility in Munich. Before the decline in passenger dependence on international oil and gas corporations numbers caused by the Covid-19 pandemic, up to 2 million and allow us to better control compliance with social and people per day used our underground trains, buses, and ecological standards in natural gas production. trams, which travel on a transport network that is more than 700 kilometres long. These services are interlinked Networks with personalised solutions such as the MVG Rad bike- Our essential public services for the Munich metropolitan rental service. In addition, we are driving forward the use region include the operation of distribution networks for of electro mobility. Our offerings are continuously being electricity, gas, district heating and cooling, and water. expanded. All in all, we operate energy and water grids with a total length of more than 22,000 kilometres. In this task, our Telecommunications goal is to ensure above-average supply quality and reli- We offer a broad range of Internet, voice, and bandwidth ability despite increasing cost pressure. services for residential and business customers on both a fixed-network and a mobile-communications basis Sales to large sections of Bavaria, the greater Ulm area, and We are the clear market leader in the Munich energy the Main-Kinzig district in Hesse. Our product portfolio market, which is characterised by keen competition. To is continuously developed further in order to maintain maintain our position, we bank on a positive image, a our competitiveness. The services are performed jointly high level of customer orientation, sustainability, reliabil- by M-net Telekommunikations GmbH (M-net), SWM ity, and relationships based on a spirt of partnership. In Services GmbH (SWM Services), and Stadtwerke these efforts, our tried-and-proven high service quality is München GmbH. a prerequisite for our customers’ loyalty. Public Pools Trade Before Covid-19 and the temporary pool closures that Trade is a key driver of our management and business became necessary because of the pandemic, slightly model for the energy sector. It helps us optimise our more than 3.7 million people visited our M-Bäder energy business and hedge against risks. In Trade, we public pools every year. With 18 modern indoor and are engaged in market-driven energy procurement and outdoor pools and ten sauna facilities, we offer some marketing as well as managing our aggregated market of the most modern pool landscapes in Germany. We price risks, especially for electricity, natural gas, coal, also operate two fitness centres

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