Driving Responsible Transport - MAN GRI Report

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Driving Responsible Transport - MAN GRI Report
MAN GRI Report

Driving Responsible Transport

                                               2019
Engineering the Future – since 1758.
MAN SE
Driving Responsible Transport - MAN GRI Report
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
Driving Responsible Transport - MAN GRI Report
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.
Driving Responsible Transport - MAN GRI Report
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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