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.