Driving Responsible Transport - MAN GRI Report
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2 MAN 2019 GRI Report OVERVIEW PAGE 01 PAGE 03 PAGE 06 Overview Foreword FOREWORD PORTRAIT OUR APPROACH Portrait OF THE Our approach MAN GROUP Products Production Supply chain PAGE 11 PAGE 21 PAGE 30 PAGE 35 PAGE 48 People PRODUCTS PRODUCTION SUPPLY CHAIN PEOPLE SOCIETY AND Society and integrity INTEGRITY Annex 55 PAGE ANNEX OVERVIEW OF KEY INDICATORS 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 2019 GRI Report Foreword Dear Readers, The overall conditions currently shaping our industry could not be more The fact that we outstripped our climate target at all of our sites is testi- Overview challenging: on the one hand, the global coronavirus pandemic and its mony to just how successful we were in this quest last year. We had set Foreword implications are forcing us to take fast action at short notice, while on the ourselves the goal of reducing our absolute CO₂ emissions by 25% by 2020 other, the energy and mobility revolution calls for profound and long- compared to 2008. By the end of 2019, we had achieved this objective with Portrait term changes to our products and processes, something that will require a total saving of 35%. We will continue to implement our reduction mea- Our approach substantial investment. Last year in particular, climate debates were thrust sures and are working on new targets for the periods leading up to 2025 even further into the public spotlight, bringing with them even louder and 2030. Products calls for a reduction in CO₂ emissions at all stages of the transportation On the product side of things, too, MAN’s efforts are centered Production sector value chain. around developing climate-friendly drive technology, with a clear focus on For us, this means first and foremost that we must remain focused electrified powertrains for distribution trucks and city buses. In recogni- Supply chain on systematically pursuing the programs that we have launched with a tion of these endeavors, we were awarded the European Transport Prize People view to our future. We will be investing more heavily in sustainable and for Sustainability in 2019 with our electrically powered MAN eTGE and the future-proof solutions in order to continue to make our customers’ busi- all-electric MAN eTGM distribution vehicle. Society and integrity ness easier, more efficient, and successful in the long run. In doing so, we We also continued to work on issues relating to active and passive will focus on our core competencies and ensure that our actions are com- road safety last year. The MAN aFAS automated safety truck, for example, Annex patible with the principles of sustainability. This will allow us to continue has seen us create an innovative safety solution that helps to avoid the to play an active role in shaping the challenges that the process of trans- potentially serious rear-end collisions that can occur on construction formation presents, taking into account our commitment to global sus- sites. MAN received the Truck Innovation Award for this development. tainability goals and the principles set out by the United Nations Global Beyond our core business, we also show our commitment to social Compact. issues in various projects at national and international level. Alongside We are guided in this process by our MAN CR vision “Clean, Safe, our action to promote social startups or create vocational training oppor- Caring. Driving Responsible Transport.” This motto sums up our ambition tunities for refugees, our employees are at the forefront in their commit- to shape change in a responsible manner while making a positive contri- ment to long-standing charitable projects. In 2019, they spent a total of bution to society. over 2,500 hours on 20 different projects.
02 MAN 2019 GRI Report Foreword This report makes the specific contributions we are making to sustainabil- Overview ity transparent and outlines the objectives we have set ourselves going Foreword forward. Prepared in accordance with the standards of the Global Report- ing Initiative and checked by an independent auditing firm, it presents Portrait performance indicators and data that are relevant to sustainable business Our approach practices. I would like to take this opportunity to extend my most sincere Products thanks to all of our employees and partners who are involved in this pro- Production cess. I hope that you find our report informative and interesting to read. Supply chain Sincerely, People Society and integrity Joachim Drees Annex Chief Executive Officer of MAN SE
03 MAN 2019 GRI Report Portrait of the MAN Group WE PROVIDE EFFICIENT TRANSPORTATION SOLUTIONS 2019 2019 39,737 12 Overview Foreword Portrait Our approach Products employees worldwide production sites Production in 8 countries €12.7 Supply chain €13.4 People Society and integrity Annex billion sales revenue 2 billion incoming orders €361 [102-48] MAN SE’s Power Engineering business with Renk AG and MAN Energy Solutions SE (formerly known as MAN Diesel & Turbo) was sold to a Group com- pany of Volkswagen AG effective December 31, 2018, and is no longer included in divisions: this report. The data and key figures contained in this report are shown excluding the discontinued operations. MAN Truck & Bus MAN Latin America million operating profit For more information: www.corporate.man.eu
04 MAN 2019 GRI Report Portrait of the MAN Group The MAN Group Overview The MAN Group is one of Europe’s leading players in the commercial vehi- increase in its enterprise value. As well as a systematic customer focus, Foreword cle industry. It aims to offer customers innovative transportation solu- technological leadership and the continuous expansion of the after-sales tions and achieve both profitable international growth and a sustainable business are decisive factors in the MAN Group’s success. Portrait Our approach The divisions Products Production MAN Truck & Bus MAN Latin America Supply chain MAN Truck & Bus is one of the leading manufacturers of commercial vehicles in Europe MAN Latin America has been one of the largest truck and bus manufacturers in Latin Ame- People and has production facilities in three European countries, as well as in Russia, South Africa, rica for more than 35 years. The company produces trucks and buses in Resende, Brazil and Turkey. The product portfolio includes vans, trucks, buses, diesel and gas engines, as and in Querétaro, Mexico. At its Resende site, the company uses a pioneering production Society and integrity well as services spanning all areas of passenger and freight transportation. This makes system featuring seven suppliers that share responsibility with MAN Latin America for Annex MAN Truck & Bus a full-range provider of commercial vehicles weighing from three assembling the vehicles on the plant premises. through 44 tons for all areas of application and special-purpose vehicles with a gross train weight of up to 250 tons. 2019 sales revenue 2019 sales revenue €11,088 million €1,737 million
05 MAN 2019 GRI Report Portrait of the MAN Group Long-term growth strategy MAN as part of TRATON Overview Technology leadership is a key factor in the success of MAN. We develop MAN Truck & Bus, MAN Latin America, and Scania collaborate closely Foreword innovative products and solutions that meet the needs of customers and within the TRATON GROUP. The aim is to develop TRATON, together with markets — while at the same time focusing on reducing fuel consumption its brands, to create a Global Champion, while maintaining the separate Portrait and emissions and on generating energy efficiently, reliably, and ecologi- identities and full operational responsibility of the individual brands. Our approach cally. In addition, MAN is moving to leverage the opportunities of digitali- Given the long product life cycles in the commercial vehicle business, the zation and to unlock new potential through new business models based synergy potential created by the cooperation will be exploited over a lon- Products on innovative mobility solutions. Given the major challenges we are cur- ger period of time. In the long run, the entire powertrain is relevant for Production rently facing, we are directing our efforts toward the development of new joint development as the main driver of a truck’s cost. Further synergy products and services with a clear focus on issues of the future: alternative potential will also be exploited by bundling purchasing activities. Supply chain drives, digitalization, and automated driving. People Capital expenditures Economic environment In the 2019 fiscal year, the MAN Group incurred capital expenditures total- Society and integrity The European truck market reported slight year-on-year growth in 2019, ing €630 million, as against €611 million in the previous year. In view of but started to cloud over increasingly in the second half of the year. The the challenging economic environment, we review and prioritize our Annex Brazilian economy continued on the path to economic recovery in 2019, planned capital expenditures. In 2019, investments in property, plant, and reporting minimal growth. This also fueled a further increase in the equipment at MAN Truck & Bus focused on getting production lines and demand for trucks, which ticked up considerably as against the previous logistics structures ready to enable the successful ramp-up of production year. The Russian truck market deteriorated further in the course of the for the latest generation of vehicles, and on modernizing the production year, and slipped back to just below the previous year's volume in 2019. All plants in order to ensure a high level of plant efficiency and product qual- in all, the demand for buses in the markets that are relevant to MAN was ity in the long term. significantly higher than it was a year earlier. The sales revenue generated by the MAN Group rose by 5% to €12.7 billion in the year under review (2018: €12.1 billion). Unit sales also rose by 5% to 142,775 (2018: 136,517) vehicles as a result of market developments. Sales revenue at MAN Latin America rose by 22% as the Brazilian economy continued to bounce back. Sales revenue at MAN Truck & Bus was up by 3% in line with the unit sales trend.
06 MAN 2019 GRI Report OUR APPROACH Corporate responsibility (CR) has been an integral part of MAN’s corporate strategy since 2010 and plays a key role in ensuring our future viability. For MAN, this means Overview understanding global challenges and identifying the opportunities and risks with regard Foreword not only to sustainable development, but also to our commercial success. We make a Portrait conscious effort to address what is expected of us by our customers, policymakers, Our approach and society at large and offer specific answers. Products Production Supply chain People MAN CR vision CR Strategy 2025+ Society and integrity The transportation of people and goods is undergoing a process of funda- Our CR vision is being implemented in concrete terms as part of our CR mental change — driven by the need for sustainable development and the Strategy 2025+. This is MAN’s response to the global challenges which are Annex opportunities that our digitally networked world can offer. MAN is part of relevant for its business and have material significance for the Group. It this transformation process and is playing a decisive role in shaping it. It is allows us to identify the risks and opportunities arising from these chal- our duty to shape this process of change in a responsible manner. We want lenges at an early stage and react accordingly. We take responsibility along to make a positive contribution to society and to make it easy for our cus- our entire value chain, focusing on five fields of action: responsibility for tomers to live up to their responsibilities. Our vision is one of an MAN products, responsibility in production, responsibility in the supply chain, without greenhouse gas and pollutant emissions and without accidents on responsibility for people, and responsibility for society and integrity. This the roads or in production. We aim to ensure that human beings and their is MAN’s way of making a targeted contribution to the Sustainable Devel- well-being are at the center of everything MAN does. Our “Clean, Safe, Car- opment Goals (SDGs) adopted by the United Nations in 2015. ing. Driving Responsible Transport” motto sums up these endeavors. MAN CR vision Clean, Safe, Caring. Driving Responsible Transport.
07 MAN 2019 GRI Report Our approach [102-44, 102-47] CLEAN, SAFE, CARING. DRIVING RESPONSIBLE TRANSPORT. Overview Foreword Portrait Our approach RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY RESPONSIBILITY Products FOR PRODUCTS IN PRODUCTION IN THE SUPPLY FOR PEOPLE FOR SOCIETY AND CHAIN INTEGRITY Production Supply chain People Society and integrity Annex Reducing green- Reducing green- elevance of issuing R Holistic health Exemplary com house gas emissions house gas emissions CSR standards management pliance and risk over the product life from production and management cycle logistics Responsible handling Needs-based voca- of conflict minerals tional training that is Open stakeholder Reducing pollutant Reducing pollutant fit for the future dialogue emissions emissions hecking human and C employee rights in orking world of the W Constructive dialogue Improving road safety dapting to climate A the supply chain future — designing with policymakers change new forms of work based on facts Sustainable mobility ecord of CO2 emis- R services sions in the supply Future-proof talent chain management
08 MAN 2019 GRI Report Our approach CR management In detail, the materiality analysis was a process comprising four key steps: Overview At MAN, corporate responsibility is a top managerial function. The Chief Foreword Human Resources Officer and Arbeitsdirektor (Executive Board member onglist of key challenges: We started by defining the challenges rel- L responsible for employee relations) is ultimately responsible for CR at evant to MAN (= fields of action) internally, covering all stages of the Portrait MAN. Reporting to him is MAN SE’s Corporate Responsibility function, value chain and based on the Sustainable Development Goals (SDGs), Our approach which is responsible for implementing MAN’s CR strategy. The Corporate as well as global challenges and stakeholder expectations. Responsibility function serves as the central point of contact for all CR Products issues in the Company. It also coordinates the CR Council, whose members rioritization by the MAN CR Council: The MAN CR Council, which P Production include managers from the areas of Research and Development, Produc- includes representatives from all areas, then embarked on an initial pri- tion, Procurement, Corporate and Product Strategy, Human Resources, oritization process based on two decisive criteria: significance for Supply chain and Public Affairs within the subgroups, as well as the Group Works Coun- MAN’s business and significance from a stakeholder perspective. People cil. The Council is responsible for advising on how to incorporate CR into operational processes and on the further development of the CR strategy, Assessment by external stakeholders: In early 2018, we organized a Society and integrity as well as for conducting systematic stakeholder dialogue. The CR Council focus workshop to allow our external stakeholders to evaluate the key met four times in the fiscal year under review. MAN also steers its CR activ- topics we had already prioritized internally. The workshop participants Annex ities through integrated management systems, as described in the Pro- included not only customers and suppliers, but also academics and duction (, page 21) and People (, page 35) chapters of this report. representatives of major companies, municipal authorities, consul- tancy firms, and well-known NGOs. Materiality analysis inalization of the key topics: Based on the internal and external eval- F [102-40, 102-42, 102-43, 102-46] MAN performed an extensive materiality uations, the CR Council then proceeded to finalize the CR Strategy analysis in 2018, updating our priority CR topics with the help of internal 2025+. The next step involved aligning the 18 priority topics — includ- and external stakeholders. We define our objectives based on the current ing the specific implementation measures that had been proposed — overall economic, legal, and social environment, without losing sight of with the functional strategy initiatives derived from the FUTURE LION overarching global challenges. We are committed to adopting an outside- corporate strategy to ensure that the priority CR topics are an integral in perspective and a proactive stance. We have taken care to ensure that part of MAN’s corporate strategy. the priority CR topics tie in with our corporate strategy and the functional strategies derived from it. An update of the materiality analysis involving external stakeholders is planned for 2020.
09 MAN 2019 GRI Report Our approach Overview The challenge of climate change At the same time, the consistent continuation of the European climate protection policy and the gradual implementation of similar policies in Foreword As a global transportation and energy company, MAN must provide the BRIC countries will also yield new growth opportunities for MAN. answers and solutions to global climate change. Specifically, the following These include: Portrait climate-related risks and opportunities apply to one or more of MAN’s Our approach subgroups: increasing market share through early compliance with regulatory requirements Products r egulatory risks, particularly with regard to CO₂ limits for commercial Production vehicles, possible CO₂ taxes, or emissions trading in the logistics sector s trengthening ties to customers and suppliers through joint efforts to cut CO₂ emissions Supply chain e xtreme weather events, such as severe storms, flooding, hail, or heavy People snowfall, which could interrupt production or affect suppliers i ncreasing competitiveness through greater immunity to energy price fluctuations, resulting from increased reliance on internal energy gen- Society and integrity a risk analysis and climate change simulation focusing on the area of eration and renewables production pointed toward risk potential resulting from periods of Annex extreme heat that could have an impact on our employees Risks resulting from climate change are also evaluated as part of MAN’s risk management system. reputation risk — because the use of our products generates green- house gas emissions and MAN can only achieve long-term market MAN’s Climate Strategy success if the Company invests in energy-efficient and low-carbon tech- MAN aims to make a significant contribution to reducing CO₂ while nologies exploiting business opportunities. We are systematically pursuing MAN’s Climate Strategy, which was adopted back in 2011. We actively involve our employees in this process and identify approaches covering all aspects of the value chain. The focus is on reducing CO₂ emissions in production. At the same time, we aim to offer our customers an efficient portfolio of products and services.
10 MAN 2019 GRI Report Our approach As part of our Climate Strategy, we set ourselves the goal of reducing CO₂ Energy management system: continuous monitoring of the degree of Overview emissions at our production sites by 25% in absolute terms, compared implementation and success of the measures taken Foreword with the baseline year, by 2020 (, page 23). In 2019, we achieved our goal ahead of schedule with a 35% reduction in CO₂ emissions. Energy storage: use of energy and heat storage facilities such as bat- Portrait In order to achieve the CO₂ target in production, MAN Truck & Bus tery systems or power-to-heat pumps Our approach adopted a CO₂ reduction plan based on five pillars: The aim is to incorporate climate and environmental protection, as well as Products Energy efficiency: increasing energy efficiency through measures energy efficiency, into all relevant processes and decisions within the Production relating to building insulation, production processes, and the purchase Company. This will allow us to ensure the future viability of the Company of energy-efficient products and services and our products while making a contribution to the sustainable develop- Supply chain ment of society. People enewable energy: using renewable energy where it makes sense to R In 2019, we started work on the development of the new Climate do so is an integral component of our decision-making processes Strategy for production, which will see MAN extend its horizon to the Society and integrity years between 2025 and 2030. Key measures will include technical effi- Internal energy generation: immunity to fluctuations in energy ciency measures as well as the use of renewable energy sources for elec- Annex prices and commodity imports by ensuring efficient and environmen- tricity and heat. tally friendly energy supplies using combined heat and power plants (CHPs)
11 MAN 2019 GRI Report RESPONSIBILITY FOR PRODUCTS By developing safe and efficient transportation and energy solutions, we aim to Overview reconcile the greatest possible economic benefits for our customers with aspects Foreword relating to environmental and climate protection. We take a holistic view of our Portrait product responsibility, looking at the entire product life cycle — from raw materials Our approach extraction 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 heavy-duty trucks featuring fossil diesel combustion engines show that, impact of our products over their entire life cycle and using forward- as a general rule, more than 90% of greenhouse gas emissions are gener- Product safety looking product development to reduce this impact. ated while the vehicles are in use, primarily due to processes involved in MAN Truck & Bus, for example, performs Life Cycle Assessments making diesel available and combusting it. This is why MAN is looking Production (LCAs) on typical long-haul trucks taking various drive/fuel combinations into alternative drive/fuel combinations in terms of their greenhouse gas into account, as well as conducting further investigations. The life cycle emissions and energy consumption, incorporating the findings into its Supply chain phases included in these analyses range from production and use through strategic decisions. People the product’s end-of-life phase (recycling), i.e., span the product’s entire life cycle. Greenhouse gas analyses conducted over the entire life cycle of Society and integrity Annex
12 MAN 2019 GRI Report EFFICIENT AND ENVIRONMENTALLY FRIENDLY PRODUCTS AND SERVICES We are committed to continuously improving the efficiency of our prod- The new MAN Lion’s City sets the standard for an economical and environ- Overview ucts. After all, in most cases our customers base their decision to buy a mentally friendly city bus. The optional MAN EfficientHybrid in the new Foreword product on total cost of ownership. In the freight transportation sector, MAN Lion’s City helps to reduce fuel consumption. The system recuper- fuel costs account for approximately one-third of this sum, which is why ates and stores braking energy to operate the vehicle electrical system, Portrait the quest for greater efficiency and low emissions is a key technology among other things. The stop-start function results in complete engine Our approach driver. In pursuit of technology leadership, MAN focuses its research and shutdown at standstill — ensuring entirely emission-free operation at bus development activities not only on developing new products and enhanc- stops, for example. Products ing existing ones but also on Product responsibility reducing fuel consumption and emissions, Efficient and alternative drive concepts, and environmentally friendly products and services alternative fuels. Reducing emissions Energy supply and We have also made a commitment to offering our customers an efficient For the purposes of a study conducted by the ACEA (European Automobile remanufacturing product portfolio as part of MAN’s Climate Strategy (,Climate Strategy, Manufacturers’ Association), MAN calculated the reduction of CO2 emis- Intelligent mobility page 23). sions in commercial vehicles from 1994 to 2016. This involved comparing semitrailer tractors from different eras as they drove three times on a 360- Product safety Efficient diesel engines kilometer route accompanied by the TÜV Süd technical inspection authority. The result shows a 31.5% reduction in fuel consumption and, as a result, in Production Ever since Rudolf Diesel developed the diesel engine in the late 19th cen- CO2 emissions in the 1994–2016 period. tury together with engineers at Maschinenfabrik Augsburg (a forerunner Supply chain of MAN), we have worked continuously to improve the efficiency and per- One of MAN’s central objectives is to make transportation more sustainable, People formance of this internal combustion engine. And our hard work has paid which is why we are working at full tilt on developing alternative drive sys- off: today, economical and efficient transportation and energy solutions tems for buses and trucks. The CO2 limits being imposed on commercial Society and integrity from MAN are in operation all over the world. vehicles at European level are a step that we explicitly welcome — but only Annex Examples include trucks from the highly efficient TGX EfficientLine, if the limits can actually be achieved, both in technological terms and from a now into its third generation, which incorporates a range of fuel-saving cost-effectiveness perspective. technologies aimed at reducing the total cost of ownership and CO₂ emis- sions. A report by the TÜV technical inspection authority confirms that the third generation of the truck consumes 6.35% less fuel than its predecessor.
13 MAN 2019 GRI Report Efficient and environmentally friendly products and services MAN Truck & Bus unveiled its revamped engine family at the 2019 Bauma When operated on special biogas, the MAN Lion’s City GL CNG natural gas- Overview construction machinery trade fair. The D08, D26, and D38 engine genera- powered city bus is virtually carbon-neutral. Foreword tion is characterized by increased efficiency and performance. The latest Portrait generation includes the completely new MAN D15, which is not only par- Electricity: the climate-friendly drive technology ticularly powerful, but also lighter and more durable thanks to its compact Our approach and simplified design. The use of enhanced Selective Catalytic Reduction With zero pollutant emissions from fuel combustion and low noise, plus a (SCR) technology in combination with the MAN Continuously Regenerat- better carbon footprint with the right electricity mix, electricity is set to be Products ing Trap (CRT) self-regenerating filter system allows exhaust gas aftertreat- the drive technology of the future — at least around town and on shorter Product responsibility ment to be reduced to almost zero, as the emission of environmentally journeys. We are preparing for the series production of purely electric city harmful NOX (nitrogen oxides) is kept at a minimum. buses and trucks. This is MAN’s way of forging ahead with efforts to pro- Efficient and mote electric mobility in commercial vehicles. Our economically robust environmentally friendly products and services Low-pollutant natural gas engines electric mobility solutions are being developed in close collaboration with cities and logistics partners. Energy supply and As a clean fuel, natural gas (CNG) plays a key role in our product portfolio. remanufacturing As well as providing low-emission propulsion for buses, trucks, and ships, eTGE Intelligent mobility natural gas is also ideally suited for use in the power generation industry. 2018 saw MAN launch its first series-produced electric vehicle, the eTGE. The fully electric van allows MAN to take another step forward in the direc- Product safety City buses tion of zero-emission metropolitan areas. Production started at the MAN CNG buses have an important role to play as we move toward achieving plant in Września back in July 2018. The vehicle celebrated its world pre- Production lower emissions in our cities, since they produce virtually no particulate miere at the 2018 IAA Commercial Vehicles in Hanover. With a range of or nitrogen oxide emissions and already enable virtually CO₂-neutral around 160 kilometers and a payload of between 1 and 1.75 t, depending on Supply chain operation thanks to the use of biogas or synthetic natural gas (power-to- the type approval, the electric van is ideally equipped for last mile logistics. People gas process). As a result, CNG buses will remain part of our portfolio for MAN Truck & Bus included the first all-electric minibus, the MAN the foreseeable future. At the 2018 International Motor Show (IAA) for eTGE Combi, in its bus range in the year under review. The MAN eTGE Society and integrity commercial vehicles, MAN Truck & Bus unveiled the new E18 engine for Combi is based on the series-produced electric MAN eTGE van and, as an Annex use in city buses. The new engine provides maximum cost effectiveness M1 category vehicle, has been (purposefully) designed to carry up to eight and minimum environmental impact, especially when combined with the passengers. MAN EfficientHybrid module.
14 MAN 2019 GRI Report Efficient and environmentally friendly products and services eTrucks Overview MAN started testing eTrucks in practice as early as in 2018. Nine partner Foreword companies of the Austrian Council for Sustainable Logistics (CNL) are put- Electric mobility: the ideal solution for inner-city traffic ting the electric trucks through their paces in day-to-day logistics opera- Portrait tions for a period spanning several months. The eTruck Development and Battery technology is a decisive factor in electric mobility, especially in com- Our approach Testing Program, involving selected customers, is part of MAN Truck & mercial vehicles. Although the development of this technology is making Bus’s electric mobility roadmap for inner-city transportation solutions, rapid progress, size, weight, and capacity still determine the extent to which Products which will be part of its range of products from 2023. it can be used. This is why electric drive technology makes particular sense Product responsibility In 2019, MAN took the next step on the road to climate-neutral dis- in modern inner-city traffic, especially in public transportation. First, there is a tribution with the launch of a small series of the MAN eTGM. The electric general push in this segment toward increasingly low-noise and emission- Efficient and distribution vehicle is powered by an electric engine with an output of 264 free drive technologies. Second, the inner-city environment also offers the environmentally friendly products and services kW and a maximum torque of 3,100 Nm. Auxiliary units such as power best conditions for corresponding charging infrastructure. Driving conditions steering, the air compressor, and air conditioning are operated electrically in the city, e.g., frequently alternating acceleration and braking phases, also Energy supply and so that they can be controlled as required to reduce energy consumption allow energy recovery systems to be used in a particularly efficient manner. remanufacturing as part of the energy management system. The vehicle offers a range of up Intelligent mobility to 200 kilometers depending on the area of use and climatic and topo- One key factor influencing the range is the heating/air conditioning of the graphical conditions. vehicle, depending on the area in which it is to be used. Public transportation Product safety VWCO, too, is working to pave the way toward next-generation companies and freight forwarders should be aware that switching to electric transportation, setting the strategic course by establishing a pioneering buses or trucks requires changes to be made to the depot’s infrastructure — Production e-Consortium at the Resende development and production complex. In and the establishment of appropriate infrastructure at suitable points along order to promote the introduction of electric vehicles, this business model the route or at the destination in cases involving interregional transportation. Supply chain relies on new partner companies that also operate beyond the factory People gates wherever the client is based. The e-Consortium covers all aspects of electric vehicle manufacturing and operations, from developing compo- Society and integrity nents locally to setting up the infrastructure needed to produce them, Electric buses Annex covering the entire life cycle of the vehicles, including disposal of the bat- In order to provide cities and transportation companies with the best pos- teries at the end of their useful lives. VWCO is the world’s first vehicle man- sible support as they move toward zero-emission mobility, MAN Truck & ufacturer to establish a complete support structure for its electric trucks in Bus will be working with its customers to operate a demo fleet comprising this form. 15 MAN Lion’s City E buses in everyday use and gather extensive hands-on
15 MAN 2019 GRI Report Efficient and environmentally friendly products and services experience in the process. MAN handed over the first two Lion’s City E Consulting for alternative drives Overview vehicles to transportation companies Hamburger Hochbahn AG and As we move from “low-emission” to “no-emission” solutions, public trans- Foreword Verkehrsbetriebe Hamburg-Holstein GmbH at the end of 2019. The two portation companies and fleet operators are faced with various challenges electric buses, which will be used to transport passengers in Hamburg to extending beyond the actual vehicle. In order to provide them with the Portrait their destination safely, comfortably, and in an environmentally friendly best possible support in this regard, MAN Truck & Bus offers its customers Our approach manner in the future, offer space for up to 88 passengers. The central advice on individual and economical transportation solutions with MAN engine is mounted on the rear axle of the buses. In the solo bus, the all- Transport Solutions. In addition to technical questions about the vehicle, Products electric driveline produces 160 kW up to a maximum of 240 kW. The the specialized consultancy team also advises customers on questions Product responsibility energy for this comes from the modular batteries with 480 kWh of relating to energy requirements, the appropriate infrastructure, mainten- installed capacity; here, MAN can rely on the fully developed battery cell ance concepts, and optimum fleet design. Efficient and technology from the Group’s modular kit. What is more, the sophisticated At the moment, the main challenge we have identified relates to the environmentally friendly products and services temperature management system ensures excellent availability regard- sufficient availability of energy on site and the necessary infrastructure. less of the time of year. The Lion’s City E reliably achieves a range of 200 km, MAN Transport Solutions maintains close contact with interested custom- Energy supply and and even up to 270 km in favorable conditions. ers so that depots and workshops can also be prepared accordingly. We remanufacturing expect the electrification of the new vehicle fleet to make a significant con- Intelligent mobility tribution to achieving the climate targets that have been set. This will, how- ever, require the supply of electricity generated using renewable sources. Product safety Production Supply chain People Society and integrity Annex
16 MAN 2019 GRI Report ENERGY SUPPLY AND REMANUFACTURING Overview Gas-fired power plants Foreword MAN Truck & Bus offers low-pollutant gas engines for CHP plants in an New lease of life for vehicle batteries output range from 37 kW through 580 kW in the case of natural gas, and Portrait from 68 kW through 580 kW for operation on alternative gases such as MAN, Volkswagen, and Verkehrsbetriebe Hamburg-Holstein (VHH) are con- Our approach biogas, landfill gas, or sewage gas. With their optimal combustion/CHP ducting a pilot project to explore how used batteries from electric vehicles processes, they achieve overall efficiencies of over 90%. can be used after their first life in the vehicle. In the Bergedorf district of Ham- Products burg, a container with a total capacity of 500 kWh has been connected to Product responsibility Remanufacturing and service the depot charging network at the VHH depot. There, MAN and VHH want to work together to test how used batteries behave after initial use in vehicles Efficient and Extending the service life of vehicle components cuts costs and, compared and as a stationary energy storage system, under real-world operating con- environmentally friendly products and services with manufacturing new parts, also reduces CO₂ emissions and resource ditions. The “second use” energy storage system is the product of a memo- consumption. randum of understanding (MoU) which Verkehrsbetriebe Hamburg-Holstein Energy supply and With this in mind, MAN Truck & Bus professionally remanufactures and MAN Truck & Bus signed in March 2018. Since directly disposing of bat- remanufacturing used parts such as coolant pumps or crankshafts under the MAN Genuine teries that were previously installed in vehicles is not environmentally sound, Intelligent mobility Parts ecoline brand. These parts then go back into everyday use. The port- the companies want to put reusing these batteries in a stationary storage folio comprises more than 4,000 items and makes a key contribution to system to the test. Product safety ensuring the sustainable supply of spare parts. A study certified by the TÜV Nord technical inspection authority shows that the remanufacturing of an Production ecoline cylinder head emits 85% less CO₂ than the production of a new cylinder head of the same design. The process also saves on methane Supply chain emissions, energy consumption, and raw materials such as cast materials. People Society and integrity Annex
17 MAN 2019 GRI Report INTELLIGENT MOBILITY Overview Digital transformation is opening up whole new business opportunities Connected CoDriver 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 Products RIO driving style. Product responsibility As a digital brand of the TRATON GROUP, RIO offers digital solutions for 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 products and services ducers and shippers of freight, managers at freight forwarders, transporta- ment stage, in which two or more semitrailer combinations follow each 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 dictates remanufacturing The RIO Box, which forms the basis for connecting vehicles with the speed and the direction and the resulting “slipstreaming effect” can Intelligent mobility the RIO platform, has already been fitted as standard in all brand-new help to achieve 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. Product safety platform allow RIO and MAN to make a significant contribution to pro- A research project initiated by DB Schenker, MAN Truck & Bus, and tecting the environment and the climate: for example, MAN customers Hochschule Fresenius University of Applied Sciences, which put net- Production can save fuel by improving tour and route planning and avoiding empty worked trucks into practical operation, was successfully completed in the journeys. The CO₂ footprint is reduced across the entire logistics chain. All year under review. Professional drivers drove two electronically linked Supply chain services on the platform — RIO services, MAN services, and partner solu- vehicles on the A9 highway between the Nuremberg and Munich sites People tions — are aimed at making users’ day-to-day business easier. Increased of the logistics company DB Schenker over the course of seven months. transparency and reduced complexity offer quantifiable advantages such Having covered some 35,000 test kilometers, the truck drivers, who drove Society and integrity as freight optimization or shorter routes, enhancing economic sustain- at a distance of 15 to 21 meters, praised the enhanced driving comfort and Annex ability as a result. increased sense of safety. In addition, the pilot project showed a reduction of around 3 to 4% in fuel consumption. This demonstrated that platoon- ing has the potential to contribute to the reduction of fuel consumption and CO2 emissions. The project received funding from the German Federal Ministry of Transport and Digital Infrastructure (BMVI).
18 MAN 2019 GRI Report Intelligent mobility Overview Extra-long trucks Foreword Truck Innovation Award for automated trucks On certain routes, extra-long trucks (up to 25.25 m) have the potential to absorb the forecast future growth in road freight traffic while helping to Portrait MAN Truck & Bus won the Truck Innovation Award for 2019 with its “aFAS curb greenhouse gas emissions. Compared to conventional trucks, fuel Our approach – Driverless Safety Vehicle on Motorways,” an automated SAE Level 4 safety consumption can be reduced by up to 25% and CO₂, nitrogen, and particu- truck. This first-ever award is presented by the jury of the International Truck late emissions can be avoided. Since the end of 2017, the longer trucks have Products of the Year (IToY). The MAN aFAS is an innovative safety solution and travels been approved for use on a defined positive network in Germany for an Product responsibility unmanned, fully automatically, behind moving construction sites, using sen- unlimited period of time. As part of the EU Horizon 2020 research project sors and vehicle-to-vehicle communication to follow the truck ahead of it, AEROFLEX, flexible and aerodynamic long truck combinations are being Efficient and which is used on the breakdown lane of highways. These safety vehicles are developed under MAN’s leadership. Offering efficiency gains of between environmentally friendly products and services repeatedly involved in serious rear-end collisions, some of them dramatic, 18 and 33%, these will help to make the logistics chain significantly more which is why the use of the MAN aFAS, where there is no driver in the vehicle, efficient from 2025 onward. Energy supply and has the potential to significantly improve the safety of construction site per- remanufacturing sonnel. The members of the jury praised the fact that the MAN aFAS has Intelligent mobility already been tested without any problems on more than 4,000 kilometers of public roads and liked the straightforward vehicle handling and extensive use Product safety of series components. Production Supply chain People Society and integrity Annex
19 MAN 2019 GRI Report PRODUCT SAFETY All MAN products are checked and monitored for safety aspects on an rucks using ACC achieved average fuel savings of almost 2% over the T Overview ongoing basis. MAN Truck & Bus lives up to its responsibility for the prod- period of the trial, despite also recording a higher average speed. At the Foreword ucts placed on the market by ensuring intensive and systematic product same time, critical events such as hard braking or sudden evasive maneu- monitoring, efficient reporting channels, and a committee structure vers were reduced by more than one-third. Portrait established for this purpose. This is set out in subgroup policy 19 101, Our approach which is based on Volkswagen Group policy 4 “Product Safety and Confor- L GS, which warns drivers if they leave a lane, resulted in better lane- mity.” The system described in this policy is used to monitor and ensure keeping and smoother steering. Products product safety and conformity for MAN Truck & Bus products. Product responsibility In the concluding driver survey, 94% of drivers said that ACC significantly Driver assistance systems improved safety — and rated it as one of the most important driver assis- Efficient and tance systems for trucks. environmentally friendly products and services Based on many years of accident research, MAN Truck & Bus is working to continuously improve the safety of its vehicles. MAN’s driver assistance Training Energy supply and systems (Adaptive Cruise Control (ACC), Lane Guard System (LGS)) increase remanufacturing road safety and reduce fuel consumption. This is also confirmed by the MAN ProfiDrive is the professional advanced training system from MAN Intelligent mobility European research project euroFOT, with companies and institutions Truck & Bus, which is used in 47 countries worldwide. Industry-specific from ten different countries taking part: training sessions in accordance with the Berufskraftfahrerweiterbil- Product safety dungsgesetz (BAG — German Professional Driver Qualification Act) teach drivers how to adopt a prudent driving style in order to avoid road traffic Production risks. This increases safety, reduces fuel consumption, and cuts the costs associated with wear and tear. Supply chain People Society and integrity Annex
20 MAN 2019 GRI Report Product safety Overview Customer satisfaction and information The last customer survey conducted at MAN Latin America included a performance evaluation of ten vehicles already in use in the customer Foreword MAN conducts surveys on product and service satisfaction in all business fleet. The performance of these vehicles was monitored over a distance of areas on a regular basis. By way of example, MAN Truck & Bus continu- around 360,000 kilometers. On average, 97% of customers were satisfied Portrait ously tracks customer satisfaction using the CustomerFirst Study (CFS). In with their performance. All of the customers surveyed said that they Our approach 2019, around 43,500 interviews were conducted as part of the CFS. Almost would buy the vehicle models delivered to them. 95% of those surveyed gave MAN Truck & Bus a “good” rating or better, In addition to training courses on products and services, we offer Products while around 77% responded with “very good” or better, meaning that cus- MAN Truck & Bus sales staff regular training on climate-related and envi- Product responsibility tomer satisfaction remains at a high level. ronmental topics. This ensures that we can provide our customers with We provide our customers with information and instructions for expert advice. Efficient and all our products. We inform them specifically about factors such as rolling environmentally friendly products and services resistance and aerodynamic drag, which influence vehicle emissions and fuel consumption. We present information on the CO₂ emissions gener- Energy supply and ated by our vehicles with reference to the total lifetime mileage. remanufacturing Intelligent mobility Product safety Production Supply chain People Society and integrity Annex
21 MAN 2019 GRI Report RESPONSIBILITY IN PRODUCTION Overview Climate change, pollution, and resource scarcity are relevant global challenges facing Foreword the production sector. State-of-the-art technology and our integrated management Portrait systems are helping us to reduce the environmental impact of our production activities. Our approach We use various levers to lower CO2 emissions and help mitigate climate change. Products Production Climate and energy E fficient transportation and logistics Scope of the indicators Environmental and This chapter covers 15 sites in the MAN Truck & Bus and MAN Latin America The reporting of CO2 emissions in the Progress Report on MAN’s Climate resource conservation divisions. Information on occupational health and safety refers to the 15 sites. Strategy refers solely to the 11 production sites that fall within the scope of In the interests of transparency, in 2017 the Group introduced a uniform the Climate Strategy and also excludes the St. Petersburg site, which repre- Supply chain reporting framework aligned with that of the Volkswagen Group. Under the sents a joint venture with SCANIA. People new, uniform Group definition, non-production sites (Dachau, Salzgitter (warehouse), and Plauen) are not included in the environmental indicators. Society and integrity Annex
22 MAN 2019 GRI Report CLIMATE AND ENERGY Overview Energy management Energy consumption The efficient use of energy, energy-saving targets, and the use of renew- in MWh 2017 2018 2019 Foreword ables are all part of our environmental management system. Our Pinetown Direct energy consumption 429,410 456,086 449,833 Portrait (combustion fuels and gases) plant is the first production site to be awarded ISO 50001 certification. Our distribution company in Germany (SRG) is also certified to ISO 50001. Indirect energy consumption 517,800 533,196 541,260 Our approach A “convoy project” was launched at MAN Truck & Bus in 2019 to Electrical energy 310,577 334,399 332,230 Products Thermal energy 207,223 198,797 209,030 systematically prepare the major production sites (Munich, Dachau, Nuremberg, Ankara, and Starachowice) for ISO 50001 certification. The Total 947,210 989,282 991,093 Production first certification is scheduled to take effect in May 2020 at the Munich Climate and energy site. In March 2020, preparations for certification were also started at the Efficient transportation four sites in Krakow, Salzgitter, Steyr, and Plauen, with initial certification Direct primary energy consumption and logistics scheduled for 2021. in MWh 2017 2018 2019 Environmental and Heating oil 1,849 2,856 2,223 resource conservation Energy consumption Natural gas 259,761 276,534 277,732 In 2019, energy consumption at MAN production sites remained largely Diesel 164,625 173,500 166,724 Supply chain Other¹ 3,175 3,197 3,154 unchanged year-on-year at 0.99 million megawatt-hours (MWh) (2018: 1 Gasoline used as fuel on site and fuel gases used in manufacturing processes People 0.99 million MWh). Energy consumption per vehicle produced rose from 7.6 MWh in 2018 to 7.7 MWh per unit in 2019. Society and integrity The MAN Truck & Bus sites in Salzgitter, Starachowice, and Krakow Annex switched to purchasing green electricity during 2018 and 2019. The Steyr Energy consumption per vehicle produced site followed at the beginning of 2020. In 2019, a total of 71,300 MWh of green electricity was purchased at these sites. MAN Latin America’s Resende in MWh per unit 2017 2018 2019 site purchased 38,600 MWh of green electricity in the year under review. 8.4 7.6 7.7 Purchasing green electricity has allowed MTB (including the MAN Latin America site in Resende) to reduce its CO₂ emissions by a total of almost 65,000 tons of CO₂.
23 MAN 2019 GRI Report Climate and energy Overview CO2 emissions CO2 reduction as part of MAN’s Climate Strategy As part of our Climate Strategy, we set ourselves the goal of reducing CO₂ Foreword CO₂ emissions per vehicle produced fell by 4.8% in the reporting period. emissions from production by 25% relative to the 2008 baseline by 2020. Absolute CO₂ emissions at MAN production sites likewise dropped by 4.4% In 2019, we achieved our target ahead of schedule with a reduction of 35%, Portrait in total in the year under review. or around 141,390 tons of CO₂ (, Scope of the Climate Strategy, page 21). In Our approach working toward our climate goal, the sites have drawn up plans to save energy and cut CO₂ emissions. In addition to the use of renewable ener- Products CO2 emissions per vehicle produced gies and new energy supply concepts, these include the optimization of Production lighting and heating control, building renovation, measures to reduce in tons per unit 2017 2018 2019 base load, and moves to raise employee awareness. Climate and energy 2.5 2.1 2.0 In 2019, we started work on the development of the new Climate Efficient transportation Strategy for production, which will see MAN extend its horizon to the and logistics years between 2025 and 2030. Key measures will include technical effici- Absolute direct and indirect CO2 emissions1 ency measures as well as the use of renewable energy sources for electri- Environmental and city and heat. resource conservation in tons of CO2 2017 2018 2019 Indirect emissions 188,842 170,871 160,551 Supply chain Direct emissions 97,408 103,468 101,760 CO2 reductions in 2019 35% Total 286,250 274,339 262,311 People 1 irect emissions result from the combustion of primary energy sources, e.g., natural gas, heating oil, diesel; indirect emissions result from D purchased electricity and district heating. Emissions are calculated on the basis of the emission factors of the VDA as a general rule. If available, Society and integrity the site-specific emission factors have been used for emissions from district heating. This is applicable to all production sites, including the St. Petersburg location. Reduction in CO2 emissions compared with the baseline of 2008. Annex This means that we have achieved our target ahead of schedule.
24 MAN 2019 GRI Report Climate and energy CO₂ reductions are evaluated on a cost-benefit basis to focus investment Overview on areas where CO₂ avoidance costs are low and the contribution to rea- Foreword ching our target is high. Using drones to identify heat loss Portrait CO2 reductions from implementing MAN’s Climate Strategy1 At the Munich site, a drone aircraft has been in use since the year under Our approach review to visualize heat losses in hard-to-reach pipelines. Using a thermal CO2 emissions in tons Baseline: 2008² 2018 2019 Reduction in % imaging camera to record images of all pipeline routes allows costly inspec- Products MAN Truck & Bus 374,600 262,223 251,065 –33% tions to be avoided and also means that defective insulation and leaks can MAN Latin America 27,200 9,833 9,345 –66% be detected early on. At the same time, this creates a better pool of data for Production Total 401,800 272,056 260,410 –35% energy management, improving the assessment and rectification of distribu- Climate and energy ¹ Figures rounded up or down, including additional reduction measures tion losses. The evaluation of the thermal images allows repair solutions to ² For some locations the year of reference is later than 2008. Efficient transportation be enhanced to make them the perfect fit. The use of the drone aircraft on and logistics the site of the Munich plant will save around €25,000 a year and avoid around 125 tons of CO2. Environmental and resource conservation Supply chain People Society and integrity Annex
25 MAN 2019 GRI Report EFFICIENT TRANSPORTATION AND LOGISTICS Overview Emissions from transportation and logistics he production of non-driven axles for the sister brand SCANIA by the T MTB plant in Salzgitter increased from approx. 700 axles produced in Foreword Reducing the environmental impact of our transportation and logistics 2018 to approx. 21,000 axles produced in 2019. 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 he ramp-up of the painting of plastic parts at the Steyr plant from T Our approach respect, including the optimization of transportation structures and pro- 2019 onward will increase the volume transported both for incoming cedures. A dedicated tool for computing the CO₂ emissions from transpor- supplies and in the interplant network. Products tation activities has been put in place. Production To reduce CO₂ emissions within our own logistics chain, we supply I n 2019, the Steyr site temporarily assumed responsibility for cab pro- our regional freight forwarders via freight hubs, which consolidate ship- duction for Munich. There will be a return to increased cab production Climate and energy ments, optimize vehicle capacity utilization, and prevent vehicles from in Munich from 2020 onward. Efficient transportation having to make empty runs. As a commercial vehicle manufacturer, we and logistics also expect our service providers to use state-of-the-art trucks that comply he transportation of incoming supplies to Starachowice rose due to T with the latest emissions standards, are operated in an environmentally an increase in unit sales of buses. Environmental and friendly manner with low energy consumption, and produce a particu- resource conservation larly low level of emissions. The downward trend in truck unit sales was offset by an increase in unit In the year under review, the logistics sector of MAN Truck & Bus sales of buses and by what remained very positive development in the Supply chain caused the release of 76,862 (2018: 69,473) tons of CO₂ for incoming sup- sales figures for the product range (TGE). As a result, the total number of People plies and 100,169 (2018: 104,535) tons of CO₂ in delivering its products. This units produced remained on a par with the previous year’s level. equates to an increase of 1.7% compared with 2018 and an increase in Society and integrity emissions per vehicle of 1.9% to 1.64 tons of CO₂ per vehicle. This moderate Annex increase is due to higher emissions in the area of incoming supplies and to internal restructuring in MTB’s production network:
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