corporate responsibility at man 2018 · 2020-04-07 · taking social and ecological responsibility...

MAN SEEngineering the Future – since 1758.

2018

MAN GRI Report

Corporate Responsibility at MAN

2 MAN 2018 GRI Report

Overview

Foreword

Portrait

Our approach

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People

Society and integrity

Annex

OVERVIEW

PAGE 01FOREWORD

PAGE 12PRODUCTS

PAGE 03PORTRAIT OF THE MAN GROUP

PAGE 32SUPPLY CHAIN

PAGE 23PRODUCTION

PAGE 06OUR APPROACH

PAGE 36PEOPLE

PAGE 50SOCIETY AND INTEGRITY

PAGE 58ANNEX 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


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Foreword

Be it alternative drives, digitalization, or automated driving: the rapid changes in the mobility landscape are opening up new business opportu-nities for MAN that also serve as our answers to global challenges. Our innovative strength – which we are using to take responsibility along our entire value chain – will be a key factor in our success. In close collaboration with cities and logistics partners, we are bringing electric and gas-powered commercial vehicles to the road in a quest to turn low-pollutant urban mobility with as close to zero local emissions as possible into reality. Our very first electric van, the eTGE, has been in series production since 2018. In 2023, we will also launch the series production of eTrucks for urban distribution transportation. We are already testing these vehicles in day-to-day operations: the handover of the first set of MAN eTrucks to member companies of the Austrian Coun-cil for Sustainable Logistics in September 2018 saw us put a development partnership that is the only one of its kind in the commercial vehicle sector into practice. We are also focusing increasingly on alternative drive systems for our buses: with the new Lion’s City G, MAN has developed a vehicle that is low in emissions when run on natural gas and carbon-neu-tral when fueled with biogas. We are also planning to start the series pro-duction of fully electric city buses in 2020. The major challenge facing us over the coming decade will be to meet the objectives set out in the CO₂ regulations for heavy goods vehi-cles, slashing CO₂ emissions by 15% up to 2025 and by 30% up to 2030. Although MAN is on the right track with its electrification strategy, there is currently not a single EU member state that has charging infrastructure for electric trucks or hydrogen filling stations that are tailored to suit the

needs of heavy goods vehicles. MAN is working hand-in-hand with policy-makers, associations, and environmental organizations to create the right conditions for the successful transformation of the transportation sector so that the climate targets set out in the Paris Agreement can be met. Climate protection is another aspect that plays a central role in our production processes. As part of MAN’s Climate Strategy, we set ourselves the goal of reducing CO₂ emissions at our sites by 25% in absolute terms, compared with the baseline of 2008, by 2020. In 2018, we achieved our goal ahead of schedule with a 26.0% reduction. MAN will continue to implement its action plans for energy and CO₂ reduction at the individual sites. These include, for example, the increased use of renewable energies and the introduction of new energy supply concepts. Taking social and ecological responsibility is an integral part of MAN’s corporate culture. Our employees are involved in charitable proj-ects on a voluntary basis, including in cooperation with SOS Children’s Vil-lages and the Bavarian nature conservation association (Bund Natur-schutz). This sort of commitment sends out a strong signal that motivates other colleagues to take part: the number of hours that our employees spent on voluntary work quadrupled compared with the previous year. Another aspect that sends out an important signal, both in-house and to the world outside of MAN, is our commitment to a diverse work-force: MAN sees plurality and inclusion as key prerequisites for its innova-tive strength. From family-friendly working conditions to mixed-age teams – this is a topic that really speaks to our employees. We launched a corresponding strategy process in January 2019 that will be rolled out throughout the Group over the next few years.

Dear Readers,


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Foreword

MAN also stepped up its refugee integration activities further in 2018, helping 99 migrants gain a foothold in the working world by offering them initial vocational training, apprenticeships, and internships. The city of Munich awarded us the Prize for Civic Engagement 2018 in recogni-tion of our efforts. Our current CR strategy is MAN’s response to the global challenges which have material significance for the Group. This report makes our contribution transparent and presents both the progress made and the challenges that lie ahead. Prepared in accordance with the standards of the Global Reporting Initiative and checked by an independent auditing firm, it presents performance indicators and data that are relevant to sus-tainable business practices. And it outlines the ways in which we live up to our commitment to the Ten Principles of corporate responsibility defined by the UN Global Compact.

We hope that you will find this report informative.

Sincerely,

Joachim Drees Chief Executive Officer of MAN SE


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38,430employees worldwide1

€12.1billion sales revenue1

4divisions: MAN Truck & Bus MAN Latin America MAN Energy Solutions2 Renk2

Portrait of the MAN Group

WE PROVIDE EFFICIENT TRANSPORTATION SOLUTIONS

2018

30production sites in 14 countries

€13.9billion order intake1

€332million operating profit1

2018

For more information:www.corporate.man.eu

1 The key performance indicators shown exclude the discontinued operations.2 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 company of Volkswagen AG effective December 31, 2018.

04 MAN 2018 GRI Report Portrait of the MAN Group

The MAN GroupThe MAN Group is one of Europe’s leading players in the commercial vehi-cle industry. As a producer of vans, trucks, buses, diesel and gas engines, as well as services spanning all areas of passenger and freight transportation, we hold leading market positions in all of our divisions. MAN Truck & Bus has production facilities in three European countries, as well as in Russia,

South Africa, and Turkey. MAN Latin America produces trucks and buses in Brazil and Mexico. MAN SE’s Power Engineering business (Renk and MAN Energy Solutions) was sold to a subsidiary of Volkswagen AG at the end of 2018 at the instructions of TRATON SE. You can find further information on the MAN Group’s business activities on pages 25ff. of the 2018 Annual Report.

The divisions

Commercial Vehicles Power Engineering

MAN Truck & Bus MAN Latin America MAN Energy Solutions Renk (76%)

is one of the leading manufacturers of com-mercial vehicles in Europe. The product portfolio includes vans, trucks, buses, diesel and gas engines, as well as services span-ning all areas of passenger and freight transportation. This makes MAN Truck & Bus a full-range provider of commercial vehicles weighing from three through 44 t for all areas of application and special-purpose vehicles with a gross train weight of up to 250 t.

is one of the largest truck manufacturers in Brazil. Three of the five best-selling truck models in Brazil are made by MAN Latin America. The company is a supplier of commercial vehicles and bus chassis for growth markets, marketed under both the Volkswagen Caminhões e Ônibus and MAN brands.

is one of the world’s leading suppliers of large-bore diesel and gas-powered engines and also one of the leading suppliers of tur-bomachinery on the global market. The new name for MAN Diesel & Turbo, MAN Energy Solutions, reflects the increased strategic focus on sustainable technologies and solu-tions, and the expansion of the portfolio to include hybrid, storage, and digital service technologies.

is a globally recognized manufacturer of high-quality special gear units, propulsion components, and testing systems.

2018 sales revenue

€10,815 million €1,421 million €3,128 million €502 million

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https://www.corporate.man.eu/man/media/content_medien/doc/global_corporate_website_1/investor_relations_1/gb/2018_56/GB2018_ENG_geschuetzt.pdf

05 MAN 2018 GRI Report Portrait of the MAN Group

Long-term growth strategyTechnology leadership is a key factor in the success of MAN. We develop innovative products and solutions that meet the needs of customers and markets – while at the same time focusing on reducing fuel consumption and emissions and on generating energy efficiently, reliably, and ecologi-cally. In addition, MAN is moving to leverage the opportunities of digitali-zation and to unlock new potential through new business models based on innovative mobility solutions. Given the major challenges we are cur-rently facing, we are directing our efforts toward the development of new products and services with a clear focus on issues of the future: alternative drives, digitalization, and automated driving.

Economic environmentAlthough the global economy and worldwide trade expanded again in the year under review, trade conflicts as well as the unpredictable outcome of Brexit were among the main factors causing uncertainty. Against this backdrop, the MAN Group’s business recorded encouraging growth. At €12,104 million, the sales revenue generated by the MAN Group in 2018, excluding discontinued operations, was up by 9.2% on the previous year (2017: €11,087 million). Our operating profit came to €332 million, down slightly (by €26 million) in a year-on-year comparison. We paid out guar-anteed dividends to our shareholders of €5.10 per share in 2018. The European truck market achieved another slight increase from an already high level in 2018. The Brazilian economy returned slight growth for the second year in a row, overcoming the previous recession. This also increased the demand for trucks in Brazil, which was up signifi-cantly on the weak prior-year figure. The Russian market deteriorated in the course of the year, reporting only minimal growth as against the previ-ous year overall. All in all, the demand for buses in the markets that are relevant to MAN was slightly higher than a year earlier. A total of 146,268

vehicles were ordered from MAN in 2018, 22% more than in the previous year. MAN Latin America increased its order intake in units by 33%, with MAN Truck & Bus achieving an increase of 20%. Excluding discontinued operations, the MAN Group’s operating return on sales dipped from 3.2% to 2.7%. MAN does not take extensive measures to optimize its taxes. Further information on our financial per-formance is available in our 2018 Annual Report.

Volkswagen AG’s stake in MAN SEOn April 26, 2013, MAN SE, as the controlled company, entered into a dom-ination and profit and loss transfer agreement with Truck & Bus GmbH (now TRATON SE), a wholly owned subsidiary of Volkswagen AG, as the controlling company. On December 31, 2018, TRATON SE held 87.04% of MAN SE’s voting rights and 86.87% of its share capital. MAN sold its Power Engineering business to a subsidiary of Volks-wagen AG effective the end of December 31, 2018. The Power Engineering business consisted of the two former divisions: MAN Energy Solutions and Renk. The transaction closed effective the end of December 31, 2018. Con-trol of the Power Engineering business passed to the buyer as of that date.

Capital expendituresIn the 2018 fiscal year, and excluding discontinued operations, the MAN Group incurred capital expenditures totaling €683 million, as against €661 million in the previous year. Investments in property, plant, and equipment increased, while investments in intangible assets fell. In view of the challenging economic environment, we are reviewing planned capi-tal expenditures with particular scrutiny and prioritizing them systemati-cally. We are deliberately retaining the necessary capital expenditures that will lead to long-term growth and have the potential to improve our oper-ational efficiency.

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CR Strategy 2025+Corporate responsibility (CR) has been an integral part of MAN’s corporate strategy since 2010. And our CR Strategy 2025+, which we updated in the year under review, is MAN’s response to the global challenges which have

material significance for the Group. It allows us to identify the risks and opportunities arising from these challenges at an early stage and react accordingly. We take responsibility along our entire value chain, focusing on five fields of action:

OUR APPROACH

MAN’s future performance depends on understanding global challenges and identifying the opportunities and risks with regard not only to sustainable development, but also to our commercial success. We make a conscious effort to address what is expected of us by our customers, policymakers, and society at large and offer specific answers. In doing so, we always put the human aspect at the center of our endeavors.

RESPONSIBILITY FOR PRODUCTS

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RESPONSIBILITY IN THE SUPPLY CHAIN

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RESPONSIBILITY IN PRODUCTION

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RESPONSIBILITY FOR PEOPLE

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RESPONSIBILITY FOR SOCIETY

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MAN as part of societyMAN makes its contribution to achieving the Sustainable Development Goals (SDGs) adopted by the United Nations in 2015, both through its core business and as part of its social commitment. The following chapters showcase various measures that relate directly to the individual SDGs.

CR management At MAN, corporate responsibility is a top managerial function. The Chief Human Resources Officer and Arbeitsdirektor (Executive Board member responsible for employee relations) is ultimately responsible for CR at MAN. Reporting to him is MAN SE’s Corporate Responsibility function, which is responsible for implementing MAN’s CR strategy. The Corporate Responsibility function serves as the central point of contact for all CR issues in the Company. It also coordinates the CR Council, whose members include managers from the areas of Research and Development, Produc-tion, Procurement, Corporate and Product Strategy, Human Resources, and Public Affairs within the subgroups, as well as the Group Works Coun-cil. The Council is responsible for advising on how to incorporate CR into operational processes and on the further development of the CR strategy, as well as for conducting systematic stakeholder dialog. The CR Council met four times in the fiscal year under review. MAN also steers its CR activ-ities through integrated management systems, as described in the Pro-duction (, page 23) and People (, page 36) chapters of this report.

Materiality analysis[102-43, 102-46, 102-49] MAN performed a new materiality analysis in 2018, updating our priority CR topics with the help of internal and external stakeholders. We define our objectives based on the current overall eco-nomic, legal, and social environment, without losing sight of overarching global challenges. We are committed to adopting an outside-in perspec-tive and a proactive stance.

We have taken care to ensure that the priority CR topics tie in with our cor-porate strategy and the functional strategies derived from it.

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Longlist of key challenges

Prioritization by the MAN CR Council

Assessment by external stakeholders

Finalization of the key topics

We started by defining the challenges relevant to MAN (= fields of action) internally, covering all stages of the value chain and based on the Sus-tainable Development Goals (SDGs), as well as global challenges and stakeholder expectations. The experts involved already put forth propos-als for specific implementation measures – assigned to the individual fields of action – at this stage.

In early 2018, we organized a focus workshop to allow our external stakeholders to evaluate the key topics we had already prioritized inter-nally. The workshop participants included not only customers and suppli-ers, but also academics and representatives of major companies, munici-pal authorities, consultancy firms, and well-known NGOs. One of the key calls made by the stakeholders involved was that MAN focus more on responsibility within the supply chain.

The MAN CR Council, which includes representatives from all areas, then embarked on an initial prioritization process based on two decisive crite-ria: significance for MAN’s business (opportunities/risks) and significance from a stakeholder perspective.

Based on the internal and external evaluations, we then proceeded to finalize the CR Strategy 2025+. The next step involved aligning the 18 priority topics – including the specific implementation measures that had been proposed – with the functional strategy initiatives derived from the Future Lion corporate strategy. This ensures that the priority CR topics are an integral part of MAN’s corporate strategy.

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[102-40, 102-42, 102-43, 102-44, 102-46] 2018 materiality analysis – the process


[102-44, 102-47, 102-49] Key topics

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Reducing green-house gas emissions over the product life cycle

Reducing pollutant emissions

Improving road safety

Sustainable mobility services

Reducing green-house gas emissions from production and logistics

Reducing pollutant emissions

Adapting to climate change

Relevance of issuing CSR standards

Responsible handling of conflict minerals

Checking human and employee rights in the supply chain

Record of CO2 emis-sions in the supply chain

Holistic health management

Needs-based voca-tional training that is fit for the future

Working world of the future – designing new forms of work

Future-proof talent management

Exemplary com-pliance and risk management

Open stakeholder dialog

Constructive dialog with policymakers based on facts




RESPONSIBILITY FOR SOCIETY


The challenge of climate changeAs a global transportation and energy company, MAN must provide answers and solutions to global climate change. Specifically, the following climate-related risks and opportunities apply to one or more of MAN’s subgroups:

regulatory risks, particularly with regard to CO₂ limits for commercial vehicles, possible CO₂ taxes, or emissions trading in the logistics sector extreme weather events, such as severe storms, flooding, hail, or heavy snowfall, which could interrupt production or affect suppliers a risk analysis and climate change simulation focusing on the area of production pointed toward risk potential resulting from periods of extreme heat that could have an impact on our employees reputation risk – because the use of our products generates green-house gas emissions and MAN can only achieve long-term market suc-cess if the Company invests in energy-efficient and low-carbon tech-nologies

At the same time, the consistent continuation of the European climate protection policy and the gradual implementation of similar policies in the BRIC countries also yield new growth opportunities for MAN. These include:

increasing market share through early compliance with regulatory requirements

strengthening ties to customers and suppliers through joint efforts to cut CO₂ emissions increasing competitiveness through greater immunity to energy price fluctuations, resulting from increased reliance on internal energy gen-eration and renewables

Information on the general risk management system of the MAN Group can be found in MAN’s 2018 Annual Report, pages 45ff. Risks resulting from climate change are also evaluated as part of MAN’s risk management system.

MAN’s Climate StrategyMAN aims to make a significant contribution to reducing CO₂ while 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. As part of our Climate Strategy, we set ourselves the goal of reduc-ing CO₂ emissions at our sites by 25% in absolute terms, compared with the baseline year, by 2020 (, page 26). In 2018, we achieved our goal ahead of schedule with a 26.0% reduction in CO₂ emissions. We aim to continue with the remaining activities and measures and maintain the target level between now and 2020.

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In order to achieve the CO₂ target in production, MAN Truck & Bus adopted a CO₂ reduction plan based on five pillars:

Energy efficiency: increasing energy efficiency through measures relating to building insulation, production processes, and the pur-chase of energy-efficient products and services

Renewable energy: using renewable energy where it makes sense to do so is an integral component of our decision-making processes

Internal energy generation: immunity to fluctuations in energy prices and commodity imports by ensuring efficient and environmen-tally friendly energy supplies using combined heat and power plants (CHPs)

Energy management system: continuous monitoring of the degree of implementation and success of the measures taken

Energy storage: use of energy and heat storage facilities such as bat-tery systems or power-to-heat pumps

The aim is to incorporate climate and environmental protection, as well as energy efficiency, into all relevant processes and decisions within the Company. This will allow us to ensure the future viability of the Company and our products while making a contribution to the sustainable develop-ment of society. As well as introducing the energy management system at MAN Truck & Bus, we are currently working on the further development of MAN’s Climate Strategy looking ahead to the year 2030.

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�� Product responsibility

�� Efficient and environmentally friendly products and services

�� Energy supply and remanufacturing

�� Intelligent mobility

�� Product safety

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For MAN, product responsibility means looking at the environmental impact of our products over their entire life cycle and using forward-look-ing product development to reduce this impact. MAN Truck & Bus, for example, performs Life Cycle Assessments (LCAs) on typical long-haul trucks taking various drive/fuel combinations into account, as well as conducting further investigations. The life cycle phases included in these analyses range from production and use through the product’s end-of-life phase (recycling), i.e., span the product’s entire life cycle. To identify the potential for reducing the life cycle CO₂ emissions of our products, we calculate the Product Carbon Footprint (PCF) for selected product groups of MAN Energy Solutions in line with the require-

ments of the Greenhouse Gas Protocol “Product Accounting and Report-ing Standard.” The benchmark products for which calculations have been performed include not only a dual-fuel engine, but also a performance-enhancing system (turbocharger) and a selective catalytic reduction (SCR) system. We also perform LCAs which take into account additional environ-mental impact categories. In 2016, MAN Energy Solutions went on to cal-culate the PCF for a transmission compressor.


By developing safe and efficient transportation and energy solutions, we aim to reconcile the greatest possible economic benefits for our customers with aspects relating to environmental and climate protection. We take a holistic view of our product responsibility, looking at the entire product life cycle – from raw materials extraction through disposal.

PRODUCT RESPONSIBILITY


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EFFICIENT AND ENVIRONMENTALLY FRIENDLY PRODUCTS AND SERVICES

We are committed to continuously improving the efficiency of our prod-ucts. After all, in most cases our customers base their decision to buy a product on the total cost of ownership. In the freight transportation sec-tor, fuel costs account for approximately one-third of this sum, which is why the quest for greater efficiency and low emissions is a key technology driver. In pursuit of technology leadership, MAN focuses its research and development activities not only on developing new products and enhanc-ing existing ones but also on

reducing fuel consumption and emissions, alternative drive concepts, and alternative fuels.

We have also made a commitment to offering our customers an efficient product portfolio as part of MAN’s Climate Strategy (,Climate Strategy, page 10).

Efficient diesel enginesEver since Rudolf Diesel developed the diesel engine in the late 19th cen-tury together with engineers at Maschinenfabrik Augsburg (a forerunner of MAN), we have worked continuously to improve the efficiency and per-formance of this internal combustion engine. And our hard work has paid off: today, economical and efficient transportation and energy solutions from MAN are in operation all over the world. Examples include trucks from the highly efficient TGX Efficient-Line, now into its third generation, which incorporates a range of fuel-sav-ing technologies aimed at further reducing the total cost of ownership and CO₂ emissions. A report by the TÜV technical inspection authority confirms that the third generation of the truck consumes 6.35% less fuel than its predecessor.

With its aerodynamically optimized design, the NEOPLAN Skyliner dou-ble-decker coach returns fuel consumption of less than 30 l/100 km – a saving of approximately 5% in highway driving at a constant speed of 100 km/h. This has benefits for the environment as well, with CO₂ emissions of just 12 g/passenger kilometer when operating at full passenger capacity. The new MAN Lion’s City sets the standard for an economical and environmentally friendly city bus. The optional MAN EfficientHybrid in the new MAN Lion’s City helps to reduce fuel consumption. The system recuperates and stores braking energy to operate the vehicle electrical sys-

Reducing emissionsFor the purposes of a study conducted by the ACEA (European Automobile Manufacturers’ Association), MAN calculated the reduction of CO2 emis-sions in commercial vehicles from 1994 through 2016. This involved com-paring semitrailer tractors from different eras as they drove three times on a 360-kilometer route accompanied by the technical inspection authority TÜV Süd. The result shows a 31.5% reduction in fuel consumption and, as a result, in CO2 emissions in the 1994–2016 period.

One of MAN’s central objectives is to make transportation more sustainable, which is why we are working at full tilt on developing alternative drive sys-tems for buses and trucks. The CO2 limits being imposed on commercial vehicles at European level are a step that we explicitly welcome – but only if the limits can actually be achieved, both in technological terms and from a cost-effectiveness perspective.


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tem, among other things. The stop-start function results in complete engine shutdown at standstill – ensuring entirely emission-free operation at bus stops, for example. In addition to the D26 and D38 engines from the Euro 6c engine generation, which was unveiled for the first time back in 2016, the focus is on the new D08 generation, which was launched in 2017. Exhaust gas aftertreatment based exclusively on selective catalytic reduction (SCR) technology is one of the main distinguishing features of this latest genera-tion.

Low-pollutant natural gas enginesAs a clean fuel, natural gas (CNG) plays a key role in our product portfolio. As well as providing low-emission propulsion for buses, trucks, and ships, natural gas is also ideally suited for use in the power generation industry.

City busesCNG buses have an important role to play as we move toward achieving lower emissions in our cities, since they produce virtually no particulate or nitrogen oxide emissions and already enable virtually CO₂-neutral operation thanks to the use of biogas or synthetic natural gas (power-to-gas process). As a result, CNG buses will remain part of our portfolio for the foreseeable future. At the 2018 International Motor Show (IAA) for commercial vehicles, MAN Truck & Bus unveiled the new E18 engine for use in city buses. The new engine provides maximum cost effectiveness and minimum environmental impact, especially when combined with the MAN EfficientHybrid module.

When operated on special biogas, the MAN Lion’s City GL CNG natural gas-powered city bus is virtually carbon-neutral. Gas-powered buses accounted for around one in five of all MAN city buses sold during the year under review. MAN Truck & Bus is the leading European supplier of gas buses, with a current market share of around 30%.

ShippingWith its dual-fuel engines, which are capable of operating on both gaseous and liquid fuels, MAN Energy Solutions offers a low-carbon propulsion solution for ships that combines energy efficiency with flexibility. As well as liquefied natural gas (LNG), MAN Energy Solutions also offers engines capable of running on methanol, ethanol, or liquefied petroleum gas (LPG). In particular, retrofitting measures to enable LNG operation reduce shipping emissions considerably. By providing its customers with the technology required for the retrofitting of their existing fleets, MAN Energy Solutions is aiming to spark a maritime energy revolution. In 2017, MAN Energy Solutions successfully completed the world’s first conversion of a container ship to dual-fuel operation. To provide an incentive for the retrofitting of further container ships, the company promised to offer dis-counts totaling €2 million for ten additional LNG retrofits at the interna-tional Our Ocean 2017 conference organized by the European Commis-sion.

Efficient and environmentally friendly products and services


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Electricity – the climate-friendly drive technologyWith zero pollutant emissions from fuel combustion and low noise, plus a better carbon footprint with the right electricity mix, electricity is set to be the drive technology of the future – at least around town and on shorter journeys. We are preparing for the series production of purely electric city buses and trucks. This is MAN’s way of forging ahead with efforts to pro-mote electric mobility in commercial vehicles. Our economically robust electric mobility solutions are being developed in close collaboration with cities and logistics partners.

eTGE2018 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-tion of zero-emission metropolitan areas. Production started at the MAN plant in Września back in July 2018. The vehicle celebrated its world pre-miere at the 2018 IAA Commercial Vehicles in Hanover. With a range of around 160 kilometers and a payload of between 1 and 1.75 t, depending on the type approval, the electric van is ideally equipped for last mile logis-tics.

eTrucksMAN started testing eTrucks in practice in 2018. Nine partner companies of the Austrian Council for Sustainable Logistics (CNL) are putting the elec-tric trucks through their paces in day-to-day logistics operations for a period spanning several months. With the official handover of the eTrucks in September 2018, MAN Truck & Bus set another milestone on the road to the electrification of urban distribution transportation, where freedom from emissions and reduced noise pollution are working their way up the agenda. The eTruck Development and Testing Program, involving selected customers, is part of MAN Truck & Bus’s electric mobility roadmap for inner-city transportation solutions, which will be part of its range of prod-ucts from 2023. The MAN TGM-based test vehicles have been customized to suit customer needs and are designed to facilitate testing under realistic con-ditions. They are used to deliver goods such as beverages, food, or vehicle parts – all the while producing no emissions locally and making virtually no noise. MAN will incorporate the experience it acquires together with the CNL partner companies into the further series development of electric trucks. The production of the very first small series is scheduled to com-mence soon after the practical tests have been completed.


The maritime energy revolutionInspired by the success of the energy transition in the electricity market, MAN Energy Solutions has been committed to the idea of a “maritime energy revolution” since 2016. The concept focuses on more stringent global emis-sions regulations in shipping: switching to LNG as marine fuel allows harmful nitrogen oxide and sulfur emissions to be almost completely eliminated and CO2 emissions to be significantly reduced. In a second step, the production of synthetic LNG from renewable energies also allows CO2 emissions to be completely eliminated. MAN Energy Solutions advocates a united approach involving national governments, the International Maritime Organization (IMO) as the global regulator, and the global shipping industry.


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MAN had already presented a fully electric eTruck solo distributor chassis with a swap body frame and a 6x2 axle configuration at the 2018 IAA. The 26-ton truck based on the MAN TGM has a range of up to 200 km using batteries that can be built in under the cab and along the side of the frame. Designed to handle conventional city logistics tasks, the vehicle is suitable for a wide variety of different body applications, from dry freight carrying or refrigerated box vans through refuse collector units. The additional drive systems needed for such applications are also electric.

Electric busesMAN’s solo and articulated buses will also be available with battery electric drive systems: in 2020, a purely electric demo fleet that is close to series production will be tested in practice at selected customers’ premises, with series production set to start after the testing process. To begin with, a demo fleet will be tested under everyday condi-tions involving several public transportation companies. Our close collab-oration with public transportation companies as part of our cooperation projects has revealed a desired range of up to 200 km a day under realistic operating conditions. We are developing our concepts accordingly. We are working with several cities – including Munich and Ham-burg – in a quest to press ahead with the development of line-service buses powered by alternative drives. One of the aims of this collaboration is to develop a financially optimized, zero-emission concept for electric mobility.

Consulting for alternative drivesAs we move from “low-emission” to “no-emission” solutions, public trans-portation companies and fleet operators are faced with various challenges extending beyond the actual vehicle. In order to provide them with the best possible support in this regard, MAN Truck & Bus has set up MAN Transport Solutions, a specialized consultancy team for individual and highly economical transportation solutions. In addition to technical ques-tions about the vehicle, this team also advises customers on questions relating to energy requirements, the appropriate infrastructure, mainte-nance concepts, and optimum fleet design. At the moment, the main challenge we have identified relates to the sufficient availability of energy on site and the necessary infrastruc-ture. MAN Transport Solutions maintains close contact with interested customers so that depots and workshops can also be prepared accordingly. We expect the electrification of the new vehicle fleet to make a significant


Electric mobility: the ideal solution for inner-city trafficBattery technology is a decisive factor in electric mobility, especially in com-mercial vehicles. Although the development of this technology is making rapid progress, size, weight, and capacity still determine the extent to which it can be used. This is why electric drive technology makes particular sense in modern inner-city traffic, especially in public transportation. First, there is a general push in this segment toward increasingly low-noise and emission-free drive technologies. Second, the inner-city environment also offers the best conditions for corresponding charging infrastructure. Driving conditions in the city, e.g., frequently alternating acceleration and braking phases, also allow energy recovery systems to be used in a particularly efficient manner.One key factor influencing the range is the heating/air conditioning of the vehicle, depending on the area in which it is to be used. Public transportation companies and freight forwarders should be aware that switching to electric buses or trucks requires changes to be made to the depot’s infrastructure – and the establishment of appropriate infrastructure at suitable points along the route or at the destination in cases involving interregional transportation.


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contribution to achieving the climate targets that have been set. This will, however, require the supply of electricity generated using renewable sources.


Charging technology standardizationMAN sees charging interface standardization as a key challenge which still needs to be resolved. Standardization is an essential requirement for ensur-ing flexibility, interoperability, and a stable planning framework for city bus operators, and for the successful introduction of zero-emission drive tech-nology in urban transportation. With this in mind, MAN is taking part in the public-funded eBusCS (Electric Bus Charging System) project, whose spon-sors include the German Federal Ministry for Economic Affairs and Energy. For the manufacturers, the main standardization issues to be tackled include vehicle-to-grid communication as described in ISO 15118, the positioning of automated charging systems, and the positioning of the charging inlet on the vehicle.

MAN Truck & Bus has been a member of the Charging Interface Initiative since 2017. The aim of the association is to establish the Combined Charg-ing System (CCS) as the standard for charging all battery electric vehicles.


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ENERGY SUPPLY AND REMANUFACTURING

Aftertreatment systemsMAN Energy Solutions offers its customers exhaust aftertreatment sys-tems capable of ensuring compliance with both present and future emis-sions requirements. Not only are these technologies fitted on new engines, they are also available for retrofitting on engines already in operation. MAN was the first manufacturer to offer IMO Tier III compliance for its four-stroke engines by combining them with an SCR (selective catalytic reduction) system. We have now successfully applied this technology to two-stroke engines as well.

Gas-fired power plantsMAN Energy Solutions gas turbines and gas-only engines offer an ideal solution for decentralized energy generation. Following the launch of the 35/44G gas engine (electrical output: 10,335 kW) for power generation, MAN Energy Solutions has now extended its gas engine portfolio with the addition of the 51/60G, which has an electrical output of 18,465 kW. This unit also boasts high efficiency. MAN Truck & Bus offers low-pollutant gas engines for CHP plants in an output range from 37 kW through 580 kW in the case of natural gas, and from 68 kW through 580 kW for operation on alternative gases such as biogas, landfill gas, or sewage gas. With their optimal combustion/CHP processes, they achieve overall efficiencies of over 90%.

Gas storageIn addition to dual-fuel engines, MAN Energy Solutions also supplies sys-tems for the storage and processing of natural gas in maritime applica-tions under the MAN Cryo brand. This means the company is able to pro-vide its customers with complete engine/gas supply solutions for gas-powered ships.

Remanufacturing and serviceExtending the service life of vehicle components cuts costs and, compared with manufacturing new parts, also reduces CO₂ emissions and resource consumption. With this in mind, MAN Truck & Bus professionally remanufac-tures used parts such as coolant pumps or crankshafts under the MAN Genuine Parts ecoline brand. These parts then go back into everyday use. The portfolio comprises more than 4,000 items and makes a key contribu-tion to ensuring the sustainable supply of spare parts. A study certified by the technical inspection authority TÜV Nord shows that the remanufac-turing of an ecoline cylinder head emits 85% less CO₂ than the production of a new cylinder head of the same design. The process also saves on meth-ane emissions, energy consumption, and raw materials such as cast mate-rials. With more than 115 locations worldwide, MAN PrimeServ, the ser-vice brand of MAN Energy Solutions, maintains a strong local market pres-ence. The PrimeServ portfolio spans everything from certified original parts and high-quality servicing through customer training and retrofits. Retrofits, for example for diesel engines or marine propulsion systems, help boost efficiency and cut emissions.


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INTELLIGENT MOBILITY

Digital transformation is opening up whole new business opportunities and fields of activity for MAN. Taking commercial vehicle connectivity as our starting point, we are already offering smart services that lower fuel consumption, increase fleet utilization levels, and reduce the frequency of workshop visits.

RIOAs a digital brand of the TRATON GROUP, RIO offers digital solutions for the entire transportation and logistics ecosystem on its open and cloud-based platform. RIO is aimed at all stakeholders in the supply chain: pro-ducers and shippers of freight, managers at freight forwarders, transporta-tion and logistics companies, fleet managers, dispatchers, planners, and vehicle drivers. The RIO Box, which forms the basis for connecting the vehicles with the platform, has already been fitted as standard in all brand-new MAN truck series in Europe since August 2017. The services offered on the RIO platform allow RIO and MAN to make a significant contribution to protecting the environment and the climate: for example, MAN custom-ers can save fuel by improving tour and route planning and avoiding empty journeys. The CO₂ footprint is reduced across the entire logistics chain. All services on the platform – RIO services, MAN services, and part-ner solutions – are aimed at making users’ day-to-day business easier. Increased transparency and reduced complexity offer quantifiable advan-tages such as freight optimization or shorter routes, enhancing economic sustainability as a result.

Connected CoDriverMAN is also using digitalization to promote a low-carbon driving style. With Connected CoDriver, MAN Truck & Bus offers its customers a system which, for the duration of the training period, pairs drivers with an instruc-tor who acts as a virtual co-driver and provides tips for a more efficient driving style.

PlatooningMAN defines platooning as a vehicle-based system, still at the develop-ment stage, in which two or more semitrailer combinations follow each other in close proximity with the aid of driver assistance systems, steering technology, and vehicle-to-vehicle communication. The lead vehicle dic-tates the speed and the direction and the resulting “slipstreaming effect” achieves significant fuel savings, depending on vehicle model and convoy length, for the platoon as a whole, which also leads to reduced CO₂, nitro-gen, and particulate emissions. A research project initiated by DB Schenker, MAN Truck & Bus, and the Fresenius University of Applied Sciences puts networked trucks into practical operation in everyday logistics for the first time. DB Schenker tested these vehicles as part of its regular logistics operations and using professional drivers on the digital test site, a section of the A9 highway between Munich and Nuremberg, for several months starting in June 2018. The official results of the research project were published in May 2019. Initial experience shows that the drivers respond well to the pla-tooning system and that it does not result in any significant mental over-load or underload.


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Extra-long trucksOn certain routes, extra-long trucks (up to 25.25 meters) have the potential to absorb the forecast future growth in road freight traffic while helping to curb greenhouse gas emissions. Compared to conventional trucks, CO₂ emissions can be reduced by up to 25%. Since the end of 2017, the longer trucks have been approved for use on a defined positive network in Ger-many for an unlimited period of time. Flexible and aerodynamic long truck combinations are also being developed as part of the EU Horizon 2020 research project AEROFLEX and under MAN’s leadership. Offering efficiency gains of between 18% and 33%, these will make the logistics chain significantly more efficient from 2025 onward.

Intelligent mobility

MAN wins Truck Innovation AwardMAN Truck & Bus has won the first Truck Innovation Award for 2019 with its “aFAS – Driverless Safety Vehicle on Highways,” an automated Level 4 safety truck. This first-ever award is presented by the jury of the International Truck of the Year. The MAN aFAS is an innovative safety solution and travels unmanned, fully automatically, and slowly behind mobile construction sites, using car-to-car communication to follow the truck ahead of it, which is used on the break-down lane of highways. Conventional follow-on vehicles are still often involved in serious rear-end collisions, some of them dramatic. When the MAN aFAS is in use, there is no driver in the vehicle.


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PRODUCT SAFETY

All MAN products are checked and monitored for safety aspects on an ongoing basis. To meet the high safety standards, MAN Energy Solutions has set up a Product Safety Committee. At the corporate organizational level, product safety is also underpinned by the “Product safety monitor-ing and the handling of substandard products” subgroup policy, version 03 of which is currently ratified. The Executive Board has also set out inter-nationally binding product safety guidelines in addition to other policies. As in previous years, the product safety audits carried out centrally in 2018 documented the considerable awareness of product safety that exists throughout the MAN Energy Solutions organization. MAN Truck & Bus lives up to its responsibility for the products placed on the market by ensuring intensive and systematic product moni-toring, efficient reporting channels, and a committee structure estab-lished for this purpose. This is set out in subgroup policy 19 101, which is based on Volkswagen Group Policy 4 “Product Safety and Conformity.” The system described in this Policy is used to monitor and ensure product safety and conformity for MAN Truck & Bus products.

TÜV Report for Commercial VehiclesIn the TÜV Report for Commercial Vehicles, most recently published in 2017, MAN Truck & Bus emerged as a strong performer for the fifth time running as the truck manufacturer with the highest share of vehicles to pass the main TÜV inspections free of faults.

Driver assistance systemsBased on many years of accident research, MAN Truck & Bus is working to continuously improve the safety of its vehicles. MAN’s driver assistance systems (Adaptive Cruise Control (ACC), Lane Guard System (LGS)) increase road safety and reduce fuel consumption. This is also confirmed by the European research project euroFOT, with companies and institutions from ten different countries taking part:

Trucks using ACC achieved average fuel savings of almost 2% over the period of the trial, despite also recording a higher average speed. At the same time, critical events such as hard braking or sudden evasive maneuvers were reduced by more than one-third. LGS, which warns drivers if they leave a lane, resulted in better lane-keeping and smoother steering.

In the concluding survey, 94% of drivers said that ACC significantly improved safety – and rated it as one of the most important driver assis-tance systems for trucks.

TrainingMAN ProfiDrive is the professional advanced training system from MAN Truck & Bus which is used in 47 countries worldwide. Industry-specific training sessions in accordance with the Berufskraftfahrerweiterbil-dungsgesetz (BAG — German Professional Driver Qualification Act) teach drivers how to adopt a prudent driving style in order to avoid road traffic risks. This increases safety, reduces consumption, and cuts the costs asso-ciated with wear-and-tear.


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Customer satisfaction and informationMAN conducts surveys on product and service satisfaction in all business units on a regular basis. By way of example, MAN Truck & Bus continu-ously tracks customer satisfaction using the CustomerFirst Study (CFS). In 2018, just under 50,000 interviews were conducted as part of the CFS. Almost 95% of those surveyed gave MAN Truck & Bus a “good” rating or better, while around 75% responded with “very good” or better. This indi-cates that customer satisfaction has shown a further rise compared to 2015, 2016, and 2017 levels. We provide our customers with information and instructions for all our products. We inform them specifically about factors such as rolling resistance and aerodynamic drag, which influence vehicle emissions and

fuel consumption. We present information on the CO₂ emissions gener-ated by our vehicles with reference to the total lifetime mileage. The calcu-lations can be simulated using the TCO (total cost of ownership) calculator on the MAN Truck & Bus AG website. In addition to training courses on products and services, we offer MAN Truck & Bus sales staff regular training on climate-related and envi-ronmental topics. This ensures that we can provide our customers with expert advice. Every two years, MAN Energy Solutions conducts an online survey which also serves to monitor customer satisfaction. 5,800 customers were interviewed in 2017, with 48% rating MAN Energy Solutions as excellent or very good.

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�� Efficient transportation and logistics

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Climate change, pollution, and resource scarcity are relevant global challenges facing the production sector. State-of-the-art technology and our integrated management systems are helping us to reduce the environmental impact of our production activities. We use various levers to lower CO2 emissions and help mitigate climate change.


Scope of the indicators This chapter covers 34 production sites in the MAN Truck & Bus, MAN Latin America, MAN Energy Solutions, and Renk divisions. Information on occu-pational health and safety refers to the 34 sites. In the interests of transpar-ency, in 2017 the Group introduced a uniform reporting framework aligned with that of the Volkswagen Group. Under the new, uniform Group definition, non-production sites (Dachau, Salzgitter (warehouse), Holeby, and Plauen) are not included in the environmental indicators.

The reporting of CO2 emissions in the Progress Report on MAN’s Climate Strategy refers solely to the 28 production sites that fall within the scope of the Climate Strategy, and excludes the Winterthur and St. Petersburg sites.

Our reporting of direct and indirect CO2 emissions is aligned with the emis-sion factors of the Association of the German Automotive Industry (VDA), except for emissions from district heating. Wherever possible, we use site-specific emission factors here; otherwise the VDA factors are applied.

The Pithampur site is only taken into account up to and including September 2018, after which it was no longer part of the Group.

24 MAN 2018 GRI Report Responsibility in production

Development of production in 2018Commercial Vehicles In 2018, production at MAN Truck & Bus was characterized by rising produc-tion volumes compared with 2017, with an increase of 10.3% in the number of vehicles produced to 95,503. This in turn drove up demand for energy and raw materials, along with the volume of production-related waste. Addition-ally, in the reporting period, construction work at production sites influenced energy and raw materials demand, as well as volumes of construction waste.

Production at MAN Latin America increased again in 2019, rising by 32.7% to 35,277 vehicles produced. This in turn led to an increase in volume-depen-dent environmental indicators.

Power Engineering As the markets for power engineering are exposed to different regional and economic influences, the individual business development trends tend to vary as well.

In 2018, the marine market remained at the low level witnessed in the previ-ous year. Plans for more stringent emissions standards fueled a positive trend for gas-powered ships or ships equipped with dual-fuel engines. The steady demand in merchant shipping industry was primarily based on orders for container ships and LNG carriers. The power generation market bounced back slightly in a year-on-year comparison with higher demand in all areas of application, especially gas.

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Energy managementThe efficient use of energy, energy-saving targets, and the use of renew-ables are all part of our environmental management system. Our Pinetown plant is the first production site to be awarded ISO 50001 certification. Our distribution company in Germany (SRG) is also certified to ISO 50001. A “convoy project” was launched at MAN Truck & Bus in 2018 to systematically prepare the major production sites (Munich, Dachau, Nuremberg, Ankara, and Starachowice) for ISO 50001 certification. The first certification is scheduled to take effect in 2020.

Energy consumptionIn 2018, energy consumption at MAN production sites increased to 1.41 million megawatt-hours (MWh) (2017: 1.38 MWh). In the Commercial Vehi-cles business area, energy consumption per vehicle produced fell from 8.4 MWh in 2017 to 7.6 MWh per unit in 2018. The MAN Truck & Bus sites in Salzgitter, Starachowice, and Krakow switched to purchasing green electricity in 2018. A total of 56,500 MWh of green electricity was purchased at these sites in 2018, reducing CO₂ emis-sions by almost 40,000 t. MAN Latin America’s Resende site purchased 37,300 MWh of green electricity in the year under review. The MAN Energy Solutions sites in Berlin and Saint-Nazaire purchased 8,400 MWh of renewable and CO₂-neutral electricity in 2018.

CLIMATE AND ENERGY

Direct primary energy consumption

in MWh 2016 2017 2018 CV PEHeating oil 2,583 3,108 3,440 2,857 583 Natural gas 378,143 409,175 416,430 276,719 139,711Diesel 259,874 259,312 261,331 176,105 85,226 Other¹ 6,606 7,102 6,272 3,206 3,0661 Gasoline used as fuel on site and fuel gases used in manufacturing processes CV: Commercial Vehicles

PE: Power Engineering

Energy consumption per vehicle produced (figures for the Commercial Vehicles business area)

in MWh per unit 2016 2017 20188.8 8.4 7.6

Energy consumption

in MWh 2016 2017 2018 CV PEDirect energy consumption (combustion fuels and gases)

647,206 678,696 687,473 458,887 228,586

Indirect energy consumption 719,905 698,604 720,643 535,657 184,986 Electrical energy 458,185 446,460 475,515 336,849 138,666 Thermal energy 261,720 252,144 245,128 198,808 46,320Total 1,367,111 1,377,300 1,408,116 994,544 413,572

CV: Commercial Vehicles PE: Power Engineering


CO2 emissionsCO₂ emissions per vehicle produced in the Commercial Vehicles business area fell by 17.2% in the reporting period. Absolute CO₂ emissions at MAN production sites in the Commercial Vehicles business area likewise showed a drop of 4.3% overall in the reporting period.

CO2 reduction as part of MAN’s Climate Strategy We had set ourselves the goal of reducing our CO₂ emissions from produc-tion by 25% relative to the 2008 baseline by 2020 as part of our Climate Strategy. In 2018, we achieved a 26.0% reduction in CO₂ emissions – equi-valent to around 141,374 tons (,Scope of the Climate Strategy, page 23), thus reaching our target earlier than planned. In 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 energies and new energy supply concepts, these include the optimization of lighting and heating control, building renovation, measures to reduce base load, and moves to raise employee awareness.

CO₂ reductions are evaluated on a cost-benefit basis to focus investment on areas where CO₂ avoidance costs are low and the contribution to reach-ing our target is high.

Climate and energy

26.0%Reduction in CO2 emissions compared with the baseline of 2008.This means that we have reached our target ahead of schedule.

CO2 reductions in 2018

CO2 reductions from implementing MAN’s Climate Strategy

CO2 emissions in tons Baseline: 2008 2018 Reduction in %Commercial Vehicles 401,800 275,543 –31.4 MAN Truck & Bus 374,600 265,710 –29.1 MAN Latin America 27,200 9,833 –63.8Power Engineering 142,800 127,683 –10.6 MAN Energy Solutions 122,800 104,965 –14.5 Renk 20,000 22,718 +13.6Total 544,600 403,226 –26.0

CO2 emissions per vehicle produced (figures for the Commercial Vehicles business area)

in tons per unit 2016 2017 20182.9 2.5 2.1

Absolute direct and indirect CO2 emissions1

in tons of CO2 2016 2017 2018 CV PEIndirect emissions 287,346 265,032 250,052 173,627 76,425Direct emissions 148,119 154,620 156,489 104,586 51,903Total 435,465 419,652 406,541 278,213 128,3281 Direct emissions result from the combustion of primary energy sources, e.g., natural gas, heating oil, diesel;

indirect emissions result from purchased electricity and district heating. Emissions are calculated on the basis of the emission factors of the VDA as a general rule. If available, the site-specific emission factors have been used for emissions from district heating.


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Emissions from transportation and logisticsReducing the environmental impact of our transportation and logistics activities is a key element of the integrated environmental management system at MAN Truck & Bus. A number of targets have been set in this respect, including the optimization of transportation structures and pro-cedures. A dedicated tool for computing the CO₂ emissions from transpor-tation activities has been put in place. To reduce CO₂ emissions within our own logistics chain, we supply our regional freight forwarders via freight hubs, which consolidate ship-ments, optimize vehicle capacity utilization, and prevent vehicles from having to make empty runs. As a commercial vehicle manufacturer, we also expect our service providers to use state-of-the-art trucks that comply with the latest emissions standards, are operated in an environmentally friendly manner with low energy consumption, and produce a particu-larly low level of emissions. In the year under review, in the logistics sector MAN Truck & Bus caused the release of 69,473 tons of CO₂ (2017: 82,189) for incoming sup-plies and 104,535 tons of CO₂ (2017: 96,297) in delivering its products. This equates to an absolute reduction of around 2.6% compared with 2017 and a reduction in emissions per vehicle of 14% to 1.61 tons of CO₂ per vehicle. This improvement can be traced back to significantly higher production volumes and a further increase in sales from the product range (TGE). The assumptions used for calculation purposes were also updated.

The logistics sector of MAN Truck & Bus took the following measures to continuously improve its CO₂ emissions in 2018:

As part of the MAN Truck & Bus and Scania Group network, the imple-mentation of a joint train concept was piloted on high-volume routes, with implementation planned for 2020.

Optimization of transportation routes in the empty container network by reallocating sender/receiver relations: the reallocation process aims to reduce the number of journeys and avoid long-distance journeys, thereby avoiding emissions.

Switch from noncollapsible to collapsible containers to ensure the effi-cient use of cargo space when transporting empty containers (24,000 containers implemented in 2018).

Reduction in outbound emissions by switching domestic vehicle distri-bution logistics in Germany over to a trailer concept: higher loading factors allow more vehicles to be transported per journey, avoiding sep-arate journeys and saving CO₂ emissions.

EFFICIENT TRANSPORTATION AND LOGISTICS

Logistics-related CO2 emissions per vehicle produced, in tons

2.0

1.5

1.0

02013 2014 2015 2016 2017 2018

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MAN Energy Solutions achieved further milestones in 2018 with its “Lean & Green Logistics” project: with the construction of a heavy-load center in Augsburg and the joint development of a special 24-axle transport wagon together with a freight forwarder for special transports, we have been able to shift an increasing volume of large-scale engine transports from road to rail since late 2018. We will be systematically increasing the proportion of engines delivered by rail in the future, allowing us to save up to 450 tons of CO₂ a year. This will also allow us to reduce pollution caused by exhaust gases and noise.

Employee mobilityMAN has Group-wide requirements for air travel, rental cars, and train journeys: employees should only travel when it is unavoidable. Alterna-tives such as video or conference calls must be checked in advance. The most environmentally friendly means of transportation should always be used as long as this is economically feasible.

In the year under review, business travel by our employees caused around 12,277 tons of CO₂ emissions (2017: 14,800). This figure relates to business travel booked through the central travel service in Germany, around 87.21% of which was for flights. In Germany, depending on the available infrastructure, we provide subsidized tickets for employees’ journeys to and from work. At the MAN Truck & Bus site in Munich, there is a shuttle bus that travels to the com-pany premises, encouraging employees to use public transportation. At selected sites outside Germany, we also provide our employees with bus transfers. Our employees network using the TwoGo software solution to form car pools. MAN also helps to reduce commuter traffic by offering the option of working from home.

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Environmental managementAll MAN production sites are certified to a quality standard (the majority to ISO 9001). We have set ourselves the target of certifying these sites to the ISO 14001 environmental management standard as well, something that has already been achieved for 25 sites. The Querétaro and Rheine sites were certified in the year under review, with introduction measures pend-ing for Olifantsfontein. The MAN Energy Solutions site in Aurangabad was unable to complete the certification, which had been planned for the end of 2018, and will complete it in 2019. Five MAN Truck & Bus sites are additionally validated to the Euro-pean Environmental Management and Audit Scheme (EMAS) and regu-larly publish site-specific environmental statements.

OrganizationOur environmental management systems are organized at MAN sub-group level. The overarching objectives, such as MAN’s Climate Strategy, are additionally reported to the CR function of MAN SE. All goals are pur-sued in collaboration with the subgroups, and put into practice by the responsible individuals at each site:

The central Environmental Protection and Occupational Safety func-tions of the subgroups analyze requirements, implement and steer the management systems, and drive them forward in close collaboration with the environmental and occupational safety management officers at the production sites.

The plant managers and heads of production are responsible for opera-tional tasks related to environmental protection. At each site, they are supported by specialist officers and/or environmental protection experts.

Regular meetings on environmental protection, climate action, and energy management are held at subgroup level to ensure an ongoing exchange of information across all central functions and sites.

Systems and instruments The MAN Group operates systems for managing environmental protec-tion, occupational safety, and quality. At the production sites, these sys-tems are regularly verified by external experts or auditors, as well as by internal audits. We also operate a range of activities relating to energy management. Other key systems and instruments for implementing MAN’s Climate Strategy and environmental protection include:

internal policies and guidelines regulations on environmental protection, occupational safety, and energy

Alongside occupational safety, environmental protection is firmly anchored in the vocational training and continuous professional develop-ment activities of our employees.

Consumption of resources and raw materialsThe principal raw materials, auxiliaries, and consumables used by MAN in its production are steel, copper, aluminum, and various plastics. Manag-

ENVIRONMENTAL AND RESOURCE CONSERVATION

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ing these resources economically is pivotal to our success. In 2018, expen-diture on raw materials, auxiliaries, and consumables was up by 18% com-pared to the previous year.

Recycling and wasteThe majority of products manufactured by MAN are made from recyclable materials. MAN Truck & Bus has started recording the exact proportions for product life cycle assessments. We prioritize the reuse of metals in our foundries in order to save raw materials. At our Augsburg (MAN Energy Solutions) and Nuremberg (MAN Truck & Bus) sites, we purchased and reutilized specified scrap from external recycling processes. In the year under review, these plants also began recycling chips and scrap from our own production for reuse in the manufacturing process. Over the same period, total waste volumes amounted to approxi-mately 119,784 tons, 91% of which was recycled. The disposal and recycling of hazardous waste is subject to local waste management legislation. Disposal providers have confirmed proper disposal. No waste was exported. Non-production waste (construction waste) was recorded at twelve sites in the year under review and amounted to 88,975 tons (2017: 97,229 tons).

In order to reduce the amount of waste that is not attributable to the pro-duction process, MAN Truck & Bus has had an environmental concept in place for reusable and to-go cups since May 2018 that involves distributing reusable cups and bottles to its employees free of charge. This slashed the consumption of disposable cups by 85% after only a short period of time. MAN Energy Solutions also introduced reusable cups at its Augsburg site at the end of 2018. This allows the company to save on the waste created by the use of around 600,000 disposable cups every year.

Water and wastewaterIn the reporting period, we met the bulk of our water requirements from well water and surface water abstraction from lakes, rivers, and the sea. For trials on the test rigs in Augsburg and Saint-Nazaire (France) by MAN Energy Solutions, we abstracted large volumes of water from watercourses. This was used solely for cooling purposes and to operate water brakes dur-ing engine testing. After use, the water is returned to its source.

Environmental and resource conservation

Production waste

in tons 2016 2017 2018 CV PETotal waste for disposal 7,872 8,976 10,898 8,903 1,995 Hazardous 5,102 5,405 7,246 6,103 1,143 Non-hazardous 2,770 3,571 3,652 2,800 852Total waste for recycling 44,024 46,417 50,089 35,033 15,056 Hazardous 11,200 11,013 10,363 7,345 3,018 Non-hazardous 32,824 35,404 39,726 27,688 12,038Metallic waste 53,060 52,809 58,797 45,261 13,536Total waste 104,956 108,202 119,784 89,197 30,587Recycling ratio (%) 92 92 91 90 93


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Expenditure on materials

in € million 2016 2017 2018Expenditure on raw materials, auxiliaries, consumables, and procured supplies

6,532 6,749 7,992

Expenditure on procured services 460 358 405Total 6,992 7,108 8,396


At our Munich site, work to expand the central well water supply contin-ued. Groundwater is used for cooling purposes and is then returned to its source. This procedure reduces the amount of energy needed to cool plants and processes.

Atmospheric pollutant emissionsThe development in atmospheric pollutant emissions from production varied in the year under review. Emissions from the combustion of pri-mary energy sources fell slightly, while emissions from painting facilities rose due to higher production figures and the commissioning of new painting facilities at the MAN Truck & Bus sites in Steyr and Salzgitter.

Investment in environmental protectionIn the year under review, the sites invested around €11 million in environ-mental protection measures (2017: €12.3 million). The main measure implemented within this context was the construction of a new facility for the painting of plastic parts at the Steyr plant. At MAN Energy Solutions in Augsburg, a large part of the invest-ment volume went into the construction of a new heavy-duty center which will play a key role in implementing the “Lean & Green Logistics” program.

Environmental violations No accidents with significant environmental impact resulting in fines occurred in 2018.

Environmental and resource conservation

Atmospheric pollutants

in tons 2016 2017 2018 CV PESulfur dioxide (SO2) 0.94 1.00 0.87 0.68 0.19Nitrogen oxides (NOX ) 320 378 370 263 107Particulates 1.39 1.36 1.35 1.08 0.27Volatile organic compounds (VOC)

778 792 885 821 64


Water consumption and wastewater volume

in m3 2016 2017 2018 CV PETotal freshwater 7,649,195 8,952,647 9,464,280 5,746,327 3,717,953 from external sources

(incl. drinking water)865,332 859,378 820,213 629,393 190,820

from own abstraction (incl. well water)

6,783,863 8,093,269 8,644,067 5,116,934 3,527,133

Surface water from lakes, rivers, and the sea

8,637,958 7,440,450 8,096,781 164,673 7,932,108

Wastewater 1,307,620 1,268,790 1,259,465 839,128 420,337CV: Commercial Vehicles PE: Power Engineering

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�� Responsible procurement

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Regional suppliers MAN purchases most of its raw materials, goods, and services locally, i.e., in the locations in which the Company has its production operations. This allows us to contribute to local economic and social development. For example, 98% of production material suppliers to MAN Truck & Bus have their registered offices in Europe and Turkey; around 73% of them in Ger-many. Growth potential leveraged by demand for goods and services from MAN has a positive impact on infrastructure, thanks to downstream effects: jobs are created and local incomes rise.

Concept and organizationAs part of the Volkswagen Group, we have adopted the “Sustainability in Supplier Relations” concept. We are part of the Sustainability Procure-ment Network, which now comprises more than 40 experts from the brands and regions who exchange information on a regular basis. This allows us to identify future developments and challenges at an early stage and develop solutions together. The three pillars of sustainability – requirements, monitoring, training – are designed to prevent negative social, environmental, and financial impact in our supply chain:

The MAN Group’s procurement policy aims to optimize material costs, ensure security of supply, and reduce environmental and social risks in the relationship with suppliers. As well as maximizing cost-effectiveness and efficiency, we are also committed to improving sustainability aspects.


RESPONSIBLE PROCUREMENT


Requirements that suppliers have to meetThe Volkswagen Group’s suppliers must acknowledge the sustainability requirements before submitting a quote. If suppliers submit another quote after a twelve-month period has passed, they must update the acknowledgment of this information. The requirements apply to all procured goods and services world-wide and are written into all supplier contracts ( Code of Conduct for Suppliers and Business Partners). We also expect our tier 1 suppliers to pass these requirements on to their own suppliers. This helps ensure a consistently high quality of procured goods and services, while avoiding potential supply shortages and damage to our reputation. The requirements span a range of issues, including environmental protection, employee rights, fair market conduct, and transparent busi-ness relations, and have been a mandatory element of all contracts since 2015. They set out expectations in terms of business partners’ conduct with regard to central environmental and social standards. Among other things, they are based on the principles of the UN Global Compact, the International Chamber of Commerce’s Business Charter for Sustainable Development, and the relevant conventions of the International Labour Organization. The observance of human rights is another key element, including the rejection of child, forced, and compulsory labor, and compli-ance with all other regulations on worker protection. These principles are supplemented by environmental targets, environmental and quality spec-ifications, and the Volkswagen Declaration on Social Rights.

Responsible procurement

Responsible supplier relations

Suppliers

Responsible supplier relations

RequirementsVW sustainability requirements in the form of a “Code of Conduct” as an inte-gral contractual com-ponent

MonitoringEarly detection to mini-mize risks by way of

third-party audits Self-Assessment Questionnaire

monitoring of the Self-Assessment Questionnaire status

Other trainingImprovement of sup-plier performance through

e-learning individual training measures

Pillars of the sustainability concept

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https://www.corporate.man.eu/en/risk-and-compliance/man-compliance-program/prevention/code-of-conduct-for-suppliers-and-business-partners/Code-of-Conduct-for-Suppliers-and-Business-Partners.html

https://www.corporate.man.eu/en/risk-and-compliance/man-compliance-program/prevention/code-of-conduct-for-suppliers-and-business-partners/Code-of-Conduct-for-Suppliers-and-Business-Partners.html


Supplier monitoringWe use the Volkswagen Group system for sustainable supply chain man-agement. In the course of the business process, our business partners are asked to complete the Self-Assessment Questionnaire (SAQ) and to docu-ment which measures they have taken in selected areas. The SAQ , which is widely used in the industry, was developed by the Volkswagen Group together with other automotive groups. For example, we want our main suppliers to have a certified envi-ronmental management system according to ISO 14001 and/or EMAS. The use of certified management systems for occupational health and safety according to OHSAS 18001 and/or SA8000 is also considered to be a posi-tive aspect. MAN also appoints independent auditors to conduct sustainability audits, which scrutinize our suppliers for compliance with environmental, social, and human rights standards. If one of our suppliers is suspected of violating our sustainability requirements, we will request a written statement. If the answers prove unsatisfactory, we will take further appropriate steps, such as the exami-nation of documents, on-site visits to the supplier’s premises, or further tailored supplier training activities.

“Ad hoc cases” are another central component of the supplier evaluation process. These cases refer to sudden suspicions that a supplier is violating the “Volkswagen Group’s requirements regarding sustainability in sup-plier relations” arising, for example, during an on-site inspection. Poten-tial violations can also be addressed to the employee representative bodies of the Volkswagen Group, to the labor union federations, or to the Volkswagen Group ombudsman system.

Supplier trainingThroughout all process steps and measures, the focus is generally on fair dialog between partners and on supplier development, in the interests of continuous, long-term collaboration. To ensure that the concept of sus-tainability is firmly anchored in our supply chain, all suppliers can access the e-learning module on sustainability. We train all of our procurement employees on the basis of the “Code of Conduct for Suppliers and Business Partners” and the “Volkswa-gen Group’s requirements regarding sustainability in supplier relations” as an integral part of the training concept. A total of 193 new procurement employees were trained in 2018 in addition to the more than 300 procure-ment employees that have already undergone training.


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We are aware that, in our industry, many of the potential effects on people and the environment arise primarily in the upstream value chains, for example in raw materials extraction or the production of primary prod-ucts. As a manufacturer with a global supply chain, enforcing our sustain-ability requirements right down to the last link in the supply chain is a particular challenge. The “Sustainability in Supplier Relations” concept

means that we are well acquainted with the country-specific, industry-specific, or even supplier-specific facts and can take targeted action based on this information. Absolute certainty regarding the enforcement of our requirements, however, can only be achieved through direct communica-tion and control.


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�� Human resources strategy

�� Attractive employer

�� Vocational and other training

�� Diversity and equal opportunities

�� Occupational health and safety


Annex

Being a top employer is an integral part of MAN’s corporate strategy. Now and in the future, this means attracting talented and skilled employees, offering them professional development opportunities and an innovative working environment, and actively promoting diversity within the Com-pany. The key priorities for the implementation of our human resources strategy are:

Attracting the right employeesOur employer marketing activities are aligned with the demands of digita-lization and new generations of employees. We offer a variety of opportu-nities for getting started at MAN – from internships for secondary-school students through a wide range of vocational training programs, our Global Champion Trainee Program, and traditional direct hiring.

Retaining the right employeesWe offer flexible working hours models such as Flex Work, trust-based hours, or telecommuting. Open-plan concepts for different working envi-ronments boost our employees’ efficiency, innovativeness, and satisfac-tion. We support every employee by offering them targeted training opportunities and honor performance by ensuring that all employees share in the Company’s success.

DiversityDiversity is an important issue for MAN, and goes far beyond creating opportunities for women. At MAN, we refer to this as pluralism and under-stand it as the long-term strategic approach to ensuring our future viabil-ity. We continue to develop our corporate culture and invite our employ-ees to contribute their diverse skills, knowledge, experience, and perspectives to our Company.

MAN is one of Europe’s leading players in the commercial vehicle sector. To maintain this position going forward, we need highly skilled and motivated people on our team. It is our aim to offer our employees a safe and attractive working environment that lets them develop to their full potential. This is made possible by our values-based culture of diversity, openness, and transparency.


HUMAN RESOURCES STRATEGY


We respect all of our colleagues and create an atmosphere of respect and mutual trust. This makes us more innovative, agile, and dynamic as a com-pany and gives us a competitive edge.

OrganizationHuman resources management within the Group is placed under the cor-porate HR function, headed up by the Chief Human Resources Officer and Arbeitsdirektor (Executive Board member responsible for employee rela-tions) of MAN SE and MAN Truck & Bus AG. In the central functions, we develop uniform methods and instruments and bundle competencies with the aim of leveraging synergies and setting consistently high quality standards.

Principles and guidelinesMAN and its employees are active in more than 180 countries. We stand for respect and tolerance, have made a clear commitment to diversity, and do not discriminate based on age, gender, religion, ethnicity, or sexual ori-entation. Wherever MAN has production sites, we support local economic development by recruiting employees from the region.

The following policies provide a binding framework for our human resources work around the globe:

UN Global Compact OECD Guidelines for Multinational Enterprises Code of Conduct, as amended Charter on Labor Relations Charter on Temporary Work International Framework Agreement of the MAN Group based on the conventions of the International Labour Organization (ILO)

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Top employer To secure a lasting position as a top employer, MAN has committed itself to the following objectives:

offering comprehensive onboarding programs to integrate new employees into the world of MAN as quickly as possible, providing topic-specific and interdisciplinary training and CPD, facilitating the creation of professional and international networks, fostering cooperation across divisions, and positioning MAN as a top employer.

Being a top employer is an integral part of MAN Truck & Bus’s FUTURE LION corporate strategy. As an employer, we want to use the human resources strategy based on FUTURE LION to meet current and future challenges. The world of work will continue to undergo structural change, particularly due to megatrends such as globalization and the use of new technologies, e.g., digitalization, automated driving, and electric mobility. This means that the needs of our employees and applicants are changing, too. MAN needs employees with skills that are in demand now and will remain in demand in the future. Within this context, it is MAN’s responsi-bility to train its employees and further develop their skills on an ongoing basis in order to achieve the sustainable transformation of our corporate culture.

MAN is working toward its objectives with the aid of strategic focal points: developing a future-oriented and competitive organizational struc-ture, recruiting and retaining the best employees – as the basis for our suc-cess, continuously improving and transforming ourselves as an organiza-tion and adapting to the changing needs of employees and applicants, seeing the challenges of globalization and digitalization as an oppor-tunity and working with our stakeholders across the globe, and promoting pluralism and a diverse workforce.

MAN Future LabThe MAN Future Lab has been built on a site covering around 300 square meters at the Munich headquarters and represents a milestone as MAN Truck & Bus moves toward the Working World 4.0. The office concept is based on an open-space approach and is divided into different zones that are individually adapted to suit a whole range of work situations. The MAN Future Lab is equipped in a way that makes it possible for employees to try out different hardware and software solutions thanks to new and modern IT infrastructure in line with the 360-degree approach. This includes non-territorial leadership, agile methods, space & equipment, IT resources, and cross-functional cooperation. We received the “Xing New Work” Award in 2018 in recognition of these forward-looking activities.

ATTRACTIVE EMPLOYER

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Fostering young talent It is our aim to attract and retain talent at an early stage. We offer intern-ships, scholarships, and career development programs, as well as PhD and trainee programs, to young people who are attending or have recently graduated from universities and vocational-technical schools. In addition, MAN Truck & Bus and MAN Energy Solutions are represented at some ten specialist and university career fairs every year and stage targeted activi-ties at colleges and universities around the world. There are also lecture series that give students the opportunity to enter into dialog with MAN managers.

Stimmungsbarometer employee opinion survey [102-43] In 2018, we conducted our employee opinion survey, Stimmungs-barometer, for the sixth time, with around 45,000 employees across all subgroup companies taking part. The participation rate at MAN SE/MAN Truck & Bus came to 85% (2017: 80%), with a rate of 83% (2017: 77%) at MAN Energy Solutions and 95% (2017: 96%) at Volkswagen Caminhões e Ônibus – higher than in the previous year in general. The measured level of employee satisfaction was 75.9 (2017: 74.0) at MAN SE/MAN Truck & Bus, 75 at MAN Energy Solutions (2017: 73.4), and 92.8 (2017: 94.3) at Volkswa-gen Caminhões e Ônibus, up on the prior-year level overall. The results form the basis for improvements which will be initiated and implemented in the departments and teams in 2019 to improve co operation and the working environment. The survey is conducted on a standardized, anonymous basis throughout the Volkswagen Group.

Retirement benefits Employees in Germany receive benefits from the occupational pension system that constitute a key element of MAN’s remuneration policy. These benefits represent a source of additional income on retirement and also provide cover for the risk of permanent disability or death during active employment. Employees benefit from employer contributions that are tied to their remuneration and can make additional provision through deferred compensation – which is employer-subsidized for staff who are covered by collective bargaining agreements. Depending on the usual practice in each country, employees at sites outside Germany receive benefits from defined benefit pension plans in line with local market standards. These are predominantly geared toward providing lifelong annuities, mandatory one-off payments upon retirement/resignation, or contributions to external defined contribution plans. More information on this topic can be found in the MAN 2018 Annual Report on pages 113ff.

Job securityAs part of a realignment of the MAN Truck & Bus production network, we have streamlined our European manufacturing group, clearly defining the operational focal points of each plant. We achieve higher productivity by bundling similar types of production at fewer sites, while efficient vertical integration keeps our headcount at an almost consistently high level. Against this backdrop, MAN Truck & Bus plans to make a three-digit mil-

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lion euro investment by 2019. These plans are being rolled out in consulta-tion with the responsible Works Council committees and labor unions in Germany, Poland, Austria, and Turkey. In order to also secure its competitive standing on the one hand and safe-guard jobs on the other, MAN Truck & Bus has launched the “Zukunfts-fähigkeit” future sustainability initiative in consultation with the respon-sible employee representative bodies. The initiative aims to use continuous improvements to help address future changes in the industry landscape while safeguarding our employees’ jobs. The Base Camp 3000+ program launched by MAN Energy Solu-tions back in late 2016 has been completed, and the €491 million improve-ment in earnings achieved as part of the program will secure the compa-ny’s future viability and the further development of its corporate strategy. These endeavors will also be supported by the implementation of a pack-age of measures aimed at optimizing site structures that was agreed between the Executive Board and the General Works Council in 2017 and resulted in a total of 900 jobs – 600 of them in Germany – being shed in a socially responsible manner. One key component of this package of mea-sures was the merger of the two MAN Energy Solutions plants in Ham-burg, which was implemented based on an amicable agreement reached with the local employee representatives.

Employee rightsThe existing Code of Conduct was reviewed and adapted to reflect current requirements in 2018. The principles enshrined in the Code of Conduct are based on MAN’s shared corporate values: customer focus, integrity,

respect, team spirit, and determination. The Code of Conduct focuses on the integrity and responsibility of each individual. It also uses practical examples to explain how each individual can live up to this responsibility and act with integrity – especially in conflict situations. Four cases of discrimination were reported to MAN in the year under review, all of which have been closed. [102-41] MAN recognizes the rights of workers to form and partici-pate in unions and to conduct collective bargaining. Almost all permanent staff in Germany are covered by collective bargaining agreements; around the globe, the share of our workforce which falls under collective agree-ments stands at 86%. The Volkswagen Charter on Temporary Work has been rolled out at MAN Truck & Bus and MAN Energy Solutions. In the various countries where MAN is active, employee relations are structured in accordance with national laws and regulations.

Employee structure The MAN headcount is defined as all active employees (permanent staff), employees in the passive phase of partial retirement, and vocational train-ees. It does not include subcontracted employees. On December 31, 2018, the MAN Group employed 55,476 people (2017: 54,297) in more than 180 countries. This represents an increase of 1,179 employees compared with the end of 2017. The ratio of employees in Germany to those in other countries changed only slightly. Our non-German companies employed a total of 23,957 people in the year under review (2017: 22,856), with 31,519 people employed in Germany (2017: 31,441).

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The number of employees on fixed-term contracts rose by 16.1% to 2,312 (2017: 1,992). The number of subcontracted employees came to 3,197 (2017: 2,584), with 170 (2017: 125) of them being taken on as permanent staff. The increase in subcontracted employees compared with 2017 was mainly due to demand at MAN Truck & Bus (+ 508) and MAN Energy Solutions (+ 113). In the year under review, 1,155 women and 514 men at MAN held part-time contracts not related to parental leave.

Attractive employer

Employees by business area

2016 2017 2018Commercial Vehicles 36,777 37,501 38,204Power Engineering 16,808 16,553 17,046Others 239 243 226MAN Group 53,824 54,297 55,476

Employee structure1

2016 2017 2018Permanent staff 49,982 50,455 51,428 of which women 6,758 6,878 7,116 of which men 43,224 43,577 44,312 of which part-time employees 1,250 1,349 1,669 of which women² - - 1,155 of which men² - - 514 of which employees on fixed-term contracts 1,881 1,992 2,312 of which women - - 328 of which men - - 1,984Vocational trainees 3,145 3,132 3,279 of which women 547 559 537 of which men 2,598 2,573 2,742 of which: Germany 2,245 2,169 2,157Employees, passive partial retirement 697 710 769Headcount 53,824 54,297 55,476Subcontracted employees 1,562 2,584 3,197¹ at the end of the year in each case, including MAN Energy Solutions SE and Renk AG² figures broken down by gender for the first time in 2018

Employees by location

2016 2017 2018Germany 31,444 31,441 31,519Other countries 22,380 22,856 23,957Total 53,824 54,297 55,476% in other countries 42 42 43

Age structure1

2016 2017 2018< 30 8,256 8,422 8,80831–40 14,978 15,028 15,05541–50 14,264 14,139 14,24051–60 10,950 11,292 11,608> 60 1,534 1,574 1,717Total 49,982 50,455 51,428¹ only permanent staff

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Employee turnoverThe employee turnover rate indicates what percentage of employees left the company during a one-year period. Employees on fixed-term con-tracts and employees starting retirement or partial retirement are not included in the calculation of this indicator. The relevant 2,431 departures in 2018 (2017: 2,108) result in an employee turnover rate of 4.7%, up by 0.5 percentage points on the previous year. In the year under review we hired a total of 4,926 people, while 3,654 left our Company.1

Attractive employer

1 “Employees who have left the company” includes 1,223 employees on fixed-term contracts and employees starting retirement or partial retire-ment. These are not included in the aforementioned “departures” (2,431).

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Vocational training and the dual modelOur vocational training model ensures the professional development of the next generation of outstanding technical and commercial employees. The program, which is anchored in the MAN Academy, saw some 606 (2017: 730) vocational trainees and students on dual programs start their careers at MAN Truck & Bus in the fall of 2018 – in locations including Ger-many, Austria, Turkey, and Poland. In the year under review, there were 3,279 (2017: 3,132) young tal-ents training for a total of 26 different vocational training careers. 16.4% (2017: 17.8%) of them were women in the year under review. In cooperation with various universities, 178 (2017: 169) students on dual education and integrated vocational training and degree pro-grams are currently completing the practical part of their studies at our sites in Germany; around 18% of them at MAN Truck & Bus and 22% of them at MAN Energy Solutions are women. In order to prepare MAN Truck & Bus for the digital future of the working world and to familiarize vocational trainees and students on dual programs with the challenges of Industry 4.0, they are already being intro-duced to the relevant content as part of their vocational training/studies. The “Berufsausbildung 4.0” (Vocational Training 4.0) platform provides

digital support for all training content and projects spanning all voca-tional training careers and, as well as familiarizing the trainees with the use of various applications and tablets, enables the acquisition of subject-related digital skills. When it comes to vocational training, MAN remains committed to making systematic investments in new technologies, providing training covering the basics of robotics and programming to several occupational groups. In addition to technical training, MAN attaches a great deal of importance to helping employees to develop their social skills, which is why it actively supports various social exchange and social cooperation programs and projects, as well as opportunities for employees to experi-ence places of historical interest.

VOCATIONAL AND OTHER TRAINING

Vocational trainees account for

6.4% of our permanent workforce

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Continuous professional development and trainingDigitalization is not the only change facing the Company. A new genera-tion of employees is transforming our understanding of working meth-ods, models, and environments, as well as the associated forms of collabo-ration, communication, and leadership. This is why we have developed targeted measures for continuous professional development and training. Approximately 113,000 participants took part in some 7,700 con-tinuous professional development (CPD) and training initiatives in 2018. Each MAN Truck & Bus employee received an average of 23.12 CPD hours in 2018 (2017: 20.3)1. At MAN Energy Solutions, 20,400 participants took part in 2,850 CPD and training initiatives during the same period. This brought the average number of CPD hours per employee to 16.5 (2017: 16.0). Internal experts impart specific specialist skills as part of the “Berufsfamilien Academies” (BFA) concept, ensuring systematic knowl-edge transfer and employee training. The MAN Academy broadens this offering and guarantees uniform standards of quality and competencies around the globe. Strategic and technological innovation and the transformation of the working world, driven by digitalization and Industry 4.0, call for tar-geted training measures. With a focus on future competencies and new

requirements, the Berufsfamilien Academies expanded their range of training programs in 2018, focusing on new working methods, electric mobility, and supporting the transformation of processes, methods, and employees.

Leadership and management trainingThe ever-changing challenges facing managers, the impact of megatrends, and the expectations of new generations are forcing us to rethink our HR development approach. We have revamped our strategy for the development of up-and-coming new managers accordingly. One example is the incorporation of 360° feedback on performance in day-to-day working life into the manage-ment appointment process. Interactive training concepts have been developed to support managers, encouraging them to address the topics covered by the training sessions in detail and reflect on their significance for everyday life as a manager.

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1 CPD hours include external participants in sales/after sales training.


Equal opportunities At MAN, plurality and inclusion form part of a long-term strategic approach to securing the future. We are developing our corporate culture further, inviting our employees to contribute their diverse skills, knowl-edge, experience, and perspectives to our Company. This is why we have also signed the Diversity Charter, an initiative launched by German com-panies to promote diversity in the corporate sector and in institutions under the patronage of Chancellor Angela Merkel. We put our corporate values into practice; this makes us more innovative, agile, and dynamic, and boosts our competitiveness at the same time. One focal point is equal opportunities for men and women. We attract female employees at events such as the Women’s Career Day or by participating in the HerCareer careers fair. MAN offers special HR develop-ment measures, such as its mentoring program or an orientation pro-gram, to motivate potential female candidates to embark on a manage-ment career, to support women who are starting out as specialists and managers.

Our guidelines for management hiring specify that diversity and the placement of qualified women, in particular, are to be given due consider-ation. Our new managers receive training to raise their awareness of the issue of equal opportunities. In the year under review, the proportion of female managers came to 9.2% (2017: 9.3%). Furthermore, since the new elections to the Supervisory Board held at the 2016 Annual General Meet-ing, the composition of the Company’s Supervisory Board has complied with the requirements set out in section 17 (2) of the SE-Ausführungs-gesetz (SEAG — German SE Implementation Act) with regard to the pro-portion of women and men.

DIVERSITY AND EQUAL OPPORTUNITIES

Women in management positions

2016 2017 2018Number of women in management (MK) 4 4 6Number of women in senior management (OMK) 32 35 34Number of women in top management (TMK) 92 98 109Total 128 137 149Percentage of women in management positions 9.2 9.3 9.2

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Balancing work and family life MAN continues to work to help its employees achieve a better work-life balance, offering measures which include various flexible working hours models, the opportunity to split a full-time position into two part-time positions, and company daycare centers at MAN’s Munich and Augsburg sites that care for 154 (2017: 157) infants, toddlers, and young children. We also offer part-time hours for management staff. In 2018, we appointed a pregnant employee to the management team for the first time. We have also included an optional criterion, “broad-based social experience gained as a result of long-term care leave, maternity and parental leave,” in the minimum criteria for appointment to a management position. Information sessions for expecting parents, a seminar on reentry into the workforce after parental leave, a vacation program for employees’ children, and the option to work from home round off the opportunities available at the Munich site. In addition, employees can take advantage of a caregiver placement service to help find appropriate care for children and family members.

Inclusion The Company management, the General Works Council, and the Group Council for Employees with Disabilities see inclusion as a systematic embodiment of their commitment to diversity and equal opportunities. In the year under review, MAN employed 1,849 severely disabled people in Germany (2017: 1,716). Examples of active measures to promote inclusion at our Munich site include redesign of workstations, creation of new jobs for severely disabled persons, accessible communication for deaf employ-ees, and mobility aids. In recognition of its outstanding commitment to the integration of the severely disabled, the Spare Parts Dachau area received the “Job Suc-cess – People with Disabilities in the Workplace” (“Job Erfolg – Menschen mit Behinderung am Arbeitsplatz”) award in the private sector category. The prize is awarded jointly by the Bavarian State Parliament, the Bavarian State Ministry of Labour and Social Welfare, Families and Integration, and the representative of the Bavarian State Government for people with dis-abilities.

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Occupational health and safety management Shifting demographics, the ever-increasing pace of change in the working environment and in manufacturing processes, as well as the impact of cli-mate change (for example due to extreme weather events) present signifi-cant challenges for occupational health and safety at MAN. Within the context of our comprehensive occupational health and safety system, we consider prevention, occupational safety, occupational health promotion, corporate reintegration management, and ergonomics to be our top pri-orities. The central health services functions at MAN provide advice to us as an employer in the formulation and implementation of our Company-wide health management strategy. The aim is to develop and uphold prin-ciples that apply in every location in order to achieve a coordinated strate-gic approach to health services worldwide. In addition, the health services at our plants act independently to address specific concerns with appro-priate measures.

Preventive occupational safety Occupational safety includes all measures related to preventing workplace accidents, work-related illnesses, and occupational diseases. Across our plants, we systematically evaluate workstation ergonomics and potential workplace hazards. Across the Group, we have continued with all existing initiatives to cut accident rates and prevent work-related illness. In addi-tion, we conduct regular internal and external occupational health and safety audits and inspections. When new workwear was introduced in the MAN Group, care was taken to optimize safety aspects for the various occupational groups. In particular, the large reflective stripes featured in the standard workwear

make it easier for employees to be seen, and allow them to be seen much earlier, in poor lighting conditions, which helps to improve safety. In addition to preventive measures to counteract physical illnesses, MAN Truck & Bus also assesses possible dangers to mental health in the workplace at the Munich plant. With the support of an external consul-tant, the occupational health management system at the Munich plant was analyzed to define the focal points for 2019. In addition to the priority topics, the annual theme for 2019 focuses on psychosocial health and includes a range of lecture series, relaxation courses, and workshops. In the period under review, an interdisciplinary team within MAN Energy Solutions worked on improving the risk assessment for employees on international business trips and secondments, and on optimizing pro-cesses.

There were no (2017: no) fatal workplace accidents in 2018.

OCCUPATIONAL HEALTH AND SAFETY

Lost-time injuries1

2016 2017 2018Number of lost-time injuries2 835 790 726Accident frequency index3 13.5 12.7 13.0Accident severity index4 16.6 16.7 14.81 Only reported lost-time injuries affecting permanent staff in production or at production-related sites2 In accordance with the Sozialgesetzbuch (SGB — German Social Code), lost-time injuries are defined as injuries incurred by the insured while car-

rying out their insured employment. We count lost-time injuries starting at one day of missed work.

3 The accident frequency index is an indicator of the frequency of lost-time injuries relative to the sum of all hours worked. The formula for calculat-ing the index is the number of workplace accidents multiplied by 1 million divided by hours worked.

4 The accident severity index indicates the severity of accidents by showing the sum of workdays missed due to injury in relation to the number of hours worked. The formula for calculating the index is the number of workdays missed multiplied by 1 million divided by hours worked multiplied by 10.

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Behavior-based safetyWe promote the health of our employees by taking measures to reduce accidents, prevent occupational illnesses, and maintain good health. Behavior-Based Safety Training is offered at MAN Energy Solutions to promote awareness of safety issues, a concept that is being expanded further at the company’s various sites. The Zurich site also has its own safety circuit, which is being enhanced further year after year. The “9 vital rules” adopted in 2017 to raise awareness of safety issues were incorpo-rated into the safety circuit as a component topic. “Accident Prevention” and “Always Safe. Always Good” are two cam-paigns that are being developed and rolled out hand-in-hand with all of the occupational safety experts at the MAN Truck & Bus sites. Part of the “Safety First” strategic initiative, these campaigns will help to reduce the number of accidents in the long run and raise awareness of safety issues.

OHSAS 18001, ISO 45001, and SCC certificationOur occupational safety management is part of our integrated manage-ment system. The OHSAS 18001 certified management systems at our sites help to continuously improve the safety and health of our workforce. A total of 29 of our sites have been awarded the certificate for health and safety at work. Preparations are currently underway to transition the man-agement system to the requirements of the new ISO 45001 standard,

which will replace OHSAS 18001 as the basic standard for occupational health and safety management effective March 11, 2021. At MAN Energy Solutions, another important aspect is the SCC (Safety Certification Contractors) certification of the PrimeServ service. This certification of individuals and certain organizational units is a fun-damental prerequisite for the performance of contracts with customers, especially in the oil and gas industry.

Occupational healthWith our occupational health management program, we are aiming to successively systematize all health-related measures within the Company. Our health activities not only target working conditions, but also the behaviors of the individual employees. Through our targeted occupational health measures, we encourage our employees to take the initiative in matters concerning their own health. This includes offerings from our annual health program such as stop smoking classes, intraocular pressure examinations, flu shots, mas-sages, and a healthy eating program in cooperation with Weight Watchers. In cooperation with MAN Academy, we offer numerous training programs which reinforce employees’ personal responsibility, underpin healthy behavior and teamwork, and foster a leadership culture which promotes good health.

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As part of our corporate integration management program, 476 employ-ees were integrated back into day-to-day working life in 2018 (2017: 453) after prolonged absences due to illness or accidents. The MAN Checkup is a preventive health initiative which is also aimed at helping employees remain healthy as well as identifying any potential risks at an early stage. At MAN Energy Solutions, the employee assistance program (EAP) is another important pillar of occupational health management. An inte-gral part of our HR policy for many years, EAP services include counseling during crisis situations and the development of concrete solutions.

In order to boost performance and well-being and to strengthen the per-sonal health-related skills of employees at MAN Truck & Bus, a health room is being set up at the Munich site. Together with an external health-care provider, an operator model is being developed that includes differ-ent course formats and health services.

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�� Compliance and risk management

�� Stakeholder dialog

�� Corporate citizenship

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MAN does not tolerate illegal or irregular conduct. Compliance with appli-cable laws and the Code of Conduct, our guiding principles for acting with integrity, is the basic precondition for the success of our business. “Compliance and integrity are core components of MAN’s corpo-rate strategy. Each individual employee must be aware of their individual responsibility and make their contribution so that we can live up to our social responsibility together and be successful in the long run. Compli-ance with laws, fundamental ethical values, and internal policies is a mat-ter of course for all of us – regardless of when and where we work. We oper-ate a zero-tolerance policy for violations of the law,” says Joachim Drees, Chief Executive Officer of MAN SE and MAN Truck & Bus AG.

OrganizationAs part of its responsibility, which is also set out in the German Corporate Governance Code, the Executive Board of MAN SE has established the Gov-ernance, Risk & Compliance (GRC) Organization. The GRC Organization is headed by the Head of GRC/Chief Compli-ance Officer of the MAN Group, who reports directly to the Chief Executive Officer of MAN SE as well as to the Audit Committee of the Supervisory Board. The GRC Organization is responsible for compliance and risk man-agement issues throughout the Group. The Corporate GRC Office performs central compliance and risk management tasks. This includes, for example, drafting policies and regu-lations that apply throughout the Group as well as designing training ses-sions for employees.

COMPLIANCE AND RISK MANAGEMENT

Our business practices are shaped by corporate responsibility (CR). It is our aim to put our responsibility into practice every single day. In addition to responsible corporate governance and compliance with applicable laws, this includes open dialog with our stakeholders. Our corporate citizenship initiatives and MAN aid to refugees also enable us to make a lasting contribution to sustainable development.

RESPONSIBILITY FOR SOCIETY AND INTEGRITY


In addition, the Corporate GRC Office carries out a specific risk analysis on a regular basis to identify potential compliance risks for the Group and to align and further develop the Group-wide compliance management sys-tem based on these risks. The Corporate GRC Office also manages risk management processes in the divisions and is responsible for further developing the risk management measures in cooperation with the risk/ICS (internal control system) managers. The GRC Organization is responsible for implementing the compli-ance management system and the risk management system in the Group companies. Each subgroup has a Head of GRC/Chief Compliance Officer who is supported by compliance officers and risk/internal control system managers in the different business units/regions.

Elements of the MAN compliance management system The compliance management system developed by the GRC Office addresses the topics of white-collar crime (in particular combating cor-ruption, preventing money laundering, and terrorism financing) and anti-trust law.

Code of ConductEthical principles of conduct and fundamental compliance requirements for the MAN Group are laid down in the Code of Conduct. It also spells out the corporate values and establishes in-house guidelines for the issue of integrity. An updated version 2.0 of the MAN Group’s Code of Conduct came into force effective January 1, 2018, and was rolled out to all employ-ees worldwide.

PoliciesThe GRC Organization has also developed policies on issues such as com-bating corruption, antitrust law, and money laundering prevention. These policies represent uniform and binding requirements for all employees throughout the Group.

Business Partner Approval ToolA Group-wide policy is used to check business partners providing sales support for compliance risks using a tool-based process before collabora-tion commences. In total, 1,364 checks were conducted using the Business Partner Approval Tool in the reporting period.

Compliance trainingThe GRC Organization conducts regular face-to-face and online training sessions on topics such as combating corruption, antitrust law, and money laundering prevention. A new online course was developed in the year under review, focusing on the prevention of money laundering and terror-ism financing. The course is designed to raise awareness of certain high-risk scenarios among employees who could be exposed to particular risks in this area as a result of their work, and to teach them how to deal with potential regulatory violations properly.

Compliance HelpdeskAll MAN employees can contact the Compliance Helpdesk by phone or e-mail to obtain answers to compliance-related questions. This gives the GRC Organization an overview of frequently asked questions in order to develop further preventive compliance measures as and when required. In 2018, the Compliance Helpdesk in the central GRC Organization answered 474 requests.

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Reporting regulatory violations The process for dealing with potential regulatory violations, which is set out in a Group-wide policy, serves to help detect and prevent serious risks for MAN. At MAN, all information relating to serious infringements of the law, especially in the areas of white-collar crime (e.g., corruption offenses, suspected money laundering activities, and terrorism financing), antitrust law, and data protection are investigated in detail and violations are dealt with and sanctioned in line with the penalties permitted under labor law. The Disciplinary Sanction Committee is the body responsible for impos-ing appropriate internal sanctions. In addition, findings from the investi-gation of compliance violations are used to continuously improve the compliance management system. The processes and the corresponding Group policy were updated in the year under review. In addition to the Speak up! whistleblower portal, which has been in place for a number of years, a 24/7 whistleblowing hot-line has also been introduced.


Compliance measures

2018Business Partner Approval Tool 1,364 business partners checked

Compliance training sessions 401 face-to-face sessions with 4,373 participants 20,047 employees participated in online training sessions

Compliance Helpdesk 474 questions answered by the central Compliance organization, another 1,972 questions answered locally

Compliance risk analysis A horizontal compliance risk analysis was carried out in 2018 in order to ensure transparency regarding all of the compliance requirements that apply to the MAN Group, i.e., also those requirements that do not fall within GRC’s central sphere of responsibility. The aim of the project was to identify clear organizational responsibilities at group/subgroup level for 33 areas of legislation that were classified as appli-cable.

Compliance Champions Conference In October of the year under review, more than 130 Compliance Champions and GRC employees from 45 countries met for the two-day Compliance Champions Conference, which brings all TRATON brands together. Compliance Champions – usually Chief Financial Officers of the com-panies worldwide – support the GRC Organization in implementing compliance and integrity at the international sites and regions, and act as compliance and integrity ambassadors.The aim of the conference was to strengthen the Group-wide compli-ance network and to work together to come up with ideas for the fur-ther development of the existing compliance and integrity programs and measures.

Additional measures Various communication measures were used to promote integrity in 2018. These include communication measures accompanying the worldwide rollout of the updated Code of Conduct to the employees, further use of the film on integrity as one of the corporate values, the development of a Dilemma Game to encourage dealing openly with risky dilemma situations in day-to-day work, publishing GRC Alerts and GRC Newsletters on current GRC and compliance issues, as well as events at the Group companies to mark International Anti-Corrup-tion Day on December 9, 2018.

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MembershipsMAN is a member of Transparency International and the German Insti-tute for Compliance (DICO). MAN also remains committed to the Ten Prin-ciples of the United Nations Global Compact and supports the Alliance for Integrity, which promotes integrity in business practices.

Data protectionMAN stands for effective data protection in compliance with legal regula-tions, applied worldwide based on the rigorous European standards. In order to meet both the statutory challenges and the challenges that MAN defines for itself, the MAN Group maintains a worldwide network of data protection officers and coordinators who work to ensure that the data protection-related privacy rights of employees, customers, suppliers, and business partners are protected. The global coordination of data protec-tion activities is the responsibility of Group Data Protection, a central organizational unit reporting directly to the Chief Executive Officer of MAN SE.

In the year under review, the data protection activities of the MAN compa-nies in the European Union were characterized in particular by the mea-sures taken to implement the requirements of the EU General Data Pro-tection Regulation (GDPR). As part of centrally coordinated GDPR projects in the subgroups, the Group companies took an in-depth look at the orga-nizational, information, and documentation obligations resulting from the GDPR. This led to the implementation of newly required processes, structures, and documentation activities, as well as to corresponding adjustments to existing processes, structures, and activities. This allowed MAN to achieve the necessary policy compliance when the GDPR entered into force on May 25, 2018. Processes and structures are being optimized on an ongoing basis to ensure that the Company remains GDPR-compli-ant in the future, too. One focal point is the further development of inter-nal organizational structures and processes in accordance with the pri-vacy-by-design principles. Developments in data protection legislation in countries outside of Europe are also monitored and analyzed on a regular basis. The new data protection legislation in Brazil, China, South Africa, and Turkey is par-ticularly relevant to the MAN companies.


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[102-40, 102-43] MAN is actively working on solutions for global freight and passenger transportation. Regular dialog with our stakeholders is an indis-pensable part of this process. After all, the expectations of the business world, the political sphere, and society at large are of fundamental impor-tance to our business success. Our focus here is on topics relevant to our core business, such as reducing worldwide CO₂ emissions caused by the transportation of goods and people.

MembershipsWith the aim of supporting dialog and communication between industry, policymakers, and society, we are a member of numerous associations and organizations. MAN makes an active contribution to the working groups and management committees of these associations and organizations. Our most important memberships are:

German Association for Materials Management, Purchasing, and Logistics Association of German Freight Forwarders and Logistics Operators German Transport Forum European Automobile Manufacturers’ Association (ACEA) International Chamber of Commerce Germany Transparency International Germany German Association of the Automotive Industry German Engineering Federation Bavarian Business Association

At EU level, MAN is involved in European Technology Platforms (ETPs), which are working to develop innovation and research programs that will drive sustainable and competitive mobility of people and goods.

Dialog with policymakers and businessesWe are actively working to develop solutions to global challenges. To this end, we also contribute our knowledge and expertise to the ongoing polit-ical debate. Our focus here is on topics relevant to our core business, such as reducing worldwide CO₂ emissions caused by the transportation of goods and people. In order to do so, we maintain an ongoing dialog with the responsible ministries at the national, EU, and international levels, as well as with elected representatives and opinion leaders from the govern-ment and the opposition. At local level, for example, the Company is involved in the Munich Business Climate Pact and the Bavarian Environ-mental Pact. One example of constructive cooperation at EU level was the dialog on the VECTO CO₂ simulation procedure (Vehicle Emission Calcula-tion Tool). The EU’s CO₂ emission standards for heavy-duty trucks, which were adopted in 2018, impose new obligations on European manufactur-ers. Since January 2019, for example, a certificate showing information on fuel consumption and CO₂ emissions has been required for heavy-duty trucks in certain categories. The MAN guidelines for lobbying are defined in a Code of Conduct which applies throughout the Group. This Code explicitly outlines our commitment to nonpartisanship and to making our positions transpar-ent. In 2018, MAN spent around €250,000 on direct lobbying activities (2017: around €250,000). The MAN Group Policy on Handling Donations and Sponsoring Measures prohibits politically motivated donations, such as donations to political parties, party-affiliated institutions, or politi-cians.

STAKEHOLDER DIALOG

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Showing a commitment to our fellow human beings and the environment is a key component of our business culture within the MAN Group. MAN sees itself as part of society and aims to contribute to sustainable develop-ment. As a result, the Company is involved in a whole range of national and international projects. Corporate volunteering plays a key role in this process, and allows us to put not just one, but many different faces to our commitment to social responsibility.

Promotion of social startupsMAN Truck & Bus supports social startups in the transportation sector with the MAN Impact Accelerator program, which was launched in 2017. The focus is on solutions to global challenges such as population growth and urbanization. MAN is organizing the program in collaboration with the Yunus Social Business Initiative launched by Nobel Peace Prize winner Muhammad Yunus. MAN’s approach involves sending its own young tal-ents to support the young entrepreneurs in social corporate projects by contributing their specialist expertise, including on location.

Social and environmental commitmentSocial and ecological responsibility is an integral part of MAN’s corporate culture. Many employees are involved in charitable projects on a volun-tary basis, also in cooperation with the Munich Child Protection League (Kinderschutzbund München), SOS Children’s Villages, and the Bavarian nature conservation association (Bund Naturschutz in Bayern). In the year under review, the number of hours that our employees spent on voluntary work quadrupled compared with the previous year: in 2018, 167 employees (2017: 121) spent a total of 2,890 (2017: 682) hours on 27 projects (2017: 11).

Refugee integration MAN offers refugees specific career prospects within the MAN Group. In the 2018 fiscal year, the Company integrated 99 refugees in different ways: 37 young refugees completed internships, 3 completed initial training, 31 completed a vocational training program, and 28 other refugees were employed by the Company. The city of Munich pesented MAN Truck & Bus with the Prize for Civic Engagement 2018 in the Large Companies category. The prize was awarded, in particular, in recognition of MAN’s efforts to integrate refu-gees into the labor market. The city also recognizes social commitment among employees, something that is particularly encouraged at MAN, with the “Munich’s outstanding companies of 2018” (“Münchens aus-gezeichnete Unternehmen 2018”) award.

Plurality and inclusion Plurality and inclusion are key prerequisites for a functioning society. This is an issue that MAN is tackling from a strategic angle: in March 2017, we signed the Diversity Charter, an initiative launched by German companies to promote diversity in the corporate sector and in institutions under the patronage of Chancellor Angela Merkel. We launched a Company-wide plurality and inclusion process by organizing an Executive Board work-shop in January 2019. The process is set to be rolled out throughout the Company in the coming years. Examples of measures to promote plurality and inclusion are tar-geted measures to attract women to the Company, promote their career advancement, and ensure that they remain loyal to the Company in the long term, too. These entail programs that help employees to strike a bal-ance between work and family life, which are naturally also available to

CORPORATE CITIZENSHIP

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men. At the Munich site, for example, the Löwenkinder facility is offered as a company daycare center. Another priority area is promoting mixed-age teams, allowing fresh expertise and long-standing professional expe-rience to be combined effectively. Other essential aspects from MAN’s per-spective include offering its employees appropriate working conditions for as long as possible, and promoting a general willingness to engage in lifelong learning (, see also the chapter entitled Responsibility for people, page 36).

DonationsAll donations and sponsorship activities must comply with our manda-tory, Group-wide policy. Our donation activities tend to be closely related to our core business, and cover areas such as education, academia, culture, and social affairs (social welfare, charitable and humanitarian projects, and disaster relief).

Education in Africa MAN believes that solid education and training is one of the key prerequi-sites for finding a way out of poverty. By way of example, the Company supports various school and training projects organized by SOS Children’s Villages for disadvantaged children and young people in Africa, among other places. MAN also provides support for an educational project in Burkina Faso backed by Missio, the development aid organization of the German Bishops’ Conference. In 2017, the MAN Group contributed €35,000 to sup-port the expansion of a girls’ school in the rural area of Fada N’Gourma. The second stage of construction was completed in 2018. This reflects MAN’s commitment to central CR issues – combating poverty, promoting diversity, equal opportunities, human right to education.

Charitable health care The collaboration with the nongovernmental organization Mercy Ships – a health care charity that operates worldwide – was reaffirmed in 2018 with the conclusion of a new sponsoring agreement; MAN had already con-cluded the first cooperation agreement with this NGO in 2016. Mercy Ships uses its hospital ship, the Africa Mercy, to provide free state-of-the-art medical services to people with no regular access to health care. The agreement between MAN Energy Solutions and Mercy Ships pledges the annual provision of spare parts for the four engines of the Africa Mercy in the amount of €250,000.

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Annex€757,400 was the amount that the MAN Group donated to support charitable projects in 2018

Donations


Promotion of culture MAN Energy Solutions has been the main sponsor of the Augsburg Phil-harmonic Orchestra since as far back as 2012. Annual funds of €60,000 are used to recruit renowned soloists to give guest performances.

Scholarships Since 2011, MAN has supported approximately 450 recipients of the Ger-many Scholarship, which opens up educational opportunities to high-per-forming students regardless of their social background and the location of

their university. Particular emphasis is placed on supporting students in the fields of mechanical engineering, electrical engineering, and com-puter science, as well as on other skills of the future relating to new tech-nologies such as electric mobility, autonomous driving, or digital net-working and energy informatics. We collaborate with almost 100 technical universities around the world in total.

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�� 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

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OVERVIEW OF KEY INDICATORS

Employee structure¹

2016 2017 2018Permanent staff 49,982 50,455 51,428 of which women 6,758 6,878 7,116 of which men 43,224 43,577 44,312 of which part-time employees 1,250 1,349 1,669 of which women2 – – 1,155 of which men2 – – 514 of which employees on fixed-term contracts 1,881 1,992 2,312 of which women2 – – 328 of which men2 – – 1,984Vocational trainees 3,145 3,132 3,279 of which women 547 559 537 of which men 2,598 2,573 2,742 of which: Germany 2,245 2,169 2,157Employees, passive partial retirement 697 710 769Headcount 53,824 54,297 55,476Subcontracted employees 1,562 2,584 3,1971 at the end of the year in each case² figures broken down by gender for the first time in 2018

Financial figures¹

in € million 2017 2018Sales revenue 11,087 12,104Order intake 12,397 13,913Operating profit 358 3321 [102-48] The financial figures are shown excluding the operations that were discontinued effective December 31. Prior-year figures have been

adjusted.

Financial figures

Employee figuresWomen in management positions

2016 2017 2018Women in management (MK) 4 4 6Women in senior management (OMK) 32 35 34Women in top management (TMK) 92 98 109Total 128 137 149Share as a % 9.2 9.3 9.2

Number of lost-time injuries¹

2016 2017 2018Number of lost-time injuries² 835 790 726Accident frequency index³ 13.5 12.7 13.0Accident severity index4 16.6 16.7 14.81 Lost-time injuries affecting permanent staff in production or at production-related sites (incl. Dachau, Salzgitter (warehouse), Plauen,

and Holeby) 2 In accordance with the Sozialgesetzbuch (SGB — German Social Code), lost-time injuries are defined as injuries incurred by the insured while car-

rying out their insured employment. We count lost-time injuries starting at one day of missed work.

3 The accident frequency index is an indicator of the frequency of lost-time injuries relative to the sum of all hours worked. The formula for calculat-ing the index is the number of workplace accidents multiplied by 1 million divided by hours worked.

4 The accident severity index indicates the severity of accidents by showing the sum of workdays missed due to injury in relation to the number of hours worked. The formula for calculating the index is the number of workdays missed multiplied by 1 million divided by hours worked multiplied by 10.

Employees by business area

2016 2017 2018Commercial Vehicles 36,777 37,501 38,204Power Engineering 16,808 16,553 17,046Others 239 243 226MAN Group 53,824 54,297 55,476

59 MAN 2018 GRI Report Annex – Overview of key indicators

CO2 reductions from implementing MAN’s Climate Strategy1

CO2 emissions in tons Baseline: 2008 2018 Reduction in %Commercial Vehicles 401,800 275,543 –31.4 MAN Truck & Bus 374,600 265,710 –29.1 MAN Latin America 27,200 9,833 –63.8Power Engineering 142,800 127,683 –10.6 MAN Energy Solutions 122,800 104,965 –14.5 Renk 20,000 22,718 +13.6Total 544,600 403,226 –26.01 Figures rounded up or down, including additional reduction measures and premium for voluntarily limiting the offsetting of purchased green

electricity

Expenditure on materials

in € million 2016 2017 2018Expenditure on raw materials, auxiliaries, con-sumables, and procured supplies

6,532 6,749 7,992

Expenditure on procured services 460 358 405Total 6,992 7,108 8,396

Water consumption and wastewater volume¹

in m3 2016 2017 2018 CV PETotal freshwater 7,649,195 8,952,647 9,464,280 5,746,327 3,717,954 from external sources

(incl. drinking water)865,332 859,378 820,213 629,393 190,821

from own abstraction (incl. well water)

6,783,863 8,093,269 8,644,067 5,116,934 3,527,133

Surface water from lakes, rivers, and the sea

8,637,958 7,440,450 8,096,781 164,673 7,932,108

Wastewater 1,307,620 1,268,790 1,259,465 839,128 420,3371 As of 2016, non-production sites are longer included in the reporting framework. CV: Commercial Vehicles


Atmospheric pollutants

in tons 2016 2017 2018 CV PESulfur dioxide (SO2) 0.94 1.00 0.87 0.68 0.19Nitrogen oxides (NOX ) 320 378 370 263 107Particulates 1.39 1.36 1.35 1.08 0.27Volatile organic compounds (VOC)

778 792 885 821 64


Environmental figures

Energy consumption1

in MWh 2016 2017 2018 CV PEDirect energy consumption (combustion fuels and gases)

647,206 678,696 687,473 458,887 228,586

Indirect energy consumption 719,905 698,604 720,643 535,657 184,986 Electrical energy 458,185 446,460 475,515 336,849 138,666 Thermal energy 261,720 252,144 245,128 198,808 46,320Total 1,367,111 1,377,300 1,408,116 994,544 413,5721 As of 2016, non-production sites are longer included in the reporting framework. CV: Commercial Vehicles


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60 MAN 2018 GRI Report Annex

GRI CONTENT INDEX AND UN GLOBAL COMPACT COMMUNICATION ON PROGRESS

This report has been prepared in accordance with the GRI Standards: Core option. For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index is clearly presented and the references for Disclo-sures 102-40 to 102-49 align with appropriate sections in the body of the report. The service was performed on the German version of the report.

GRI Standards Page/Annotation UNGCGRI 101 Foundation 2016GRI 102 General Disclosures 2016Organizational profileGRI 102-1 Name of the organization MAN SEGRI 102-2 Activities, brands, products, and services 4/5, AR I, 25/26GRI 102-3 Location of headquarters Munich, GermanyGRI 102-4 Location of operations 3/4; AR 25GRI 102-5 Ownership and legal form 5GRI 102-6 Markets served 4/5GRI 102-7 Scale of the organization 3–5, 24; AR IIIGRI 102-8 Information on employees and other workers 41 6GRI 102-9 Supply chain 32GRI 102-10 Significant changes to the organization and its supply chain 4, 67GRI 102-11 Precautionary Principle or approach 6/7, 10, 32, 47, 51; AR 45–54GRI 102-12 External initiatives 7, 37, 45, 53GRI 102-13 Membership of associations 54StrategyGRI 102-14 Statement from senior decision-maker 1/2Ethics and integrityGRI 102-16 Values, principles, standards, and norms of behavior 33, 37, 51 10GovernanceGRI 102-18 Governance structure 7, 50; AR 10/11, 15/16

AR = 2018 Annual Report | UNGC = UN Global Compact

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61 MAN 2018 GRI Report Annex – GRI Content Index

GRI Standards Page/Annotation UNGCStakeholder engagementGRI 102-40 List of stakeholder groups 8, 54, 67GRI 102-41 Collective bargaining agreements 40 3GRI 102-42 Identifying and selecting stakeholders 8GRI 102-43 Approach to stakeholder engagement 7/8, 39, 54GRI 102-44 Key topics and concerns raised 8/9Reporting practiceGRI 102-45 Entities included in the consolidated financial statements 67; AR 78GRI 102-46 Defining report content and topic Boundaries 7/8, 67GRI 102-47 List of material topics 9, 61–64GRI 102-48 Restatements of information 58GRI 102-49 Changes in reporting 7, 9GRI 102-50 Reporting period 67GRI 102-51 Date of most recent report 67GRI 102-52 Reporting cycle 67GRI 102-53 Contact point for questions regarding the report 68GRI 102-54 Claims of reporting in accordance with the GRI Standards 60, 67GRI 102-55 GRI content index 60–64GRI 102-56 External assurance 65/66

[102-47] Material TopicsGRI 200 EconomicGRI 205 Anti-Corruption 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 50–52GRI 205-1 Operations assessed for risks related to corruption 51/52GRI 205-2 Communication and training about anti-corruption policies and procedures 51/52 10GRI 206 Anti-competitive Behavior 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 50–52GRI 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices AR 119–121


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GRI Standards Page/Annotation UNGCGRI 300 EnvironmentalGRI 302 Energy 2016 7, 8, 9GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 11–13, 23, 25/26, 29GRI 302-1 Energy consumption within the organization 25, 59 7, 8GRI 302-3 Energy intensity 25 8GRI 302-4 Reduction of energy consumption 26 8, 9GRI 302-5 Reduction in energy requirements of products and services 13 8, 9GRI 305 Emissions 2016 7, 8, 9GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 10–13, 23, 25/26, 29GRI 305-1 Direct (Scope 1) GHG emissions 23, 26 7, 8GRI 305-2 Energy indirect (Scope 2) GHG emissions 23, 26 7, 8GRI 305-3 Other indirect (Scope 3) GHG emissions 27/28 7, 8GRI 305-4 GHG emissions intensity 26 8GRI 305-5 Reduction of GHG emissions 26–28, 59 8, 9GRI 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions 31 7, 8GRI 307 Environmental Compliance 2016 8GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 23GRI 307-1 Non-compliance with environmental laws and regulations 31 8GRI 308 Supplier Environmental Assessment 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32–35/36GRI 308-1 New suppliers that were screened using environmental criteria 33 8GRI 400 SocialGRI 401 Employment 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 36–38GRI 401-1 New employee hires and employee turnover 42 6


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[102-47] GRI Standards Page/Annotation UNGC


GRI Standards Page/Annotation UNGCGRI 403 Occupational Health and Safety 2016 1, 6GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 47–49GRI 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of

work-related fatalities47; The absence rate and the information regarding gender are not currently dis-closed. The collection of corresponding data is planned.

GRI 404 Trainingand Education 2016 6GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 36–39, 43/44GRI 404-1 Average hours of training per year per employee 44;

The information by employee category and gender is not currently disclosed. The collection of corresponding data is planned.

GRI 404-2 Programs for upgrading employee skills and transition assistance programs 44GRI 405 Diversity and Equal Opportunity 2016 1, 6GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 36/37, 45/46GRI 405-1 Diversity of governance bodies and employees 41, 45/46; AR 8/9, 21/22, 148–151 6GRI 407 Diversity of governance bodies and employees 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32/33, 37, 40GRI 407-1 Operations and suppliers in which the right to freedom 32, 34, 40 2, 3GRI 408 Child Labor 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32/33, 37GRI 408-1 Operations and suppliers at significant risk for incidents of child labor 32, 34 2, 5GRI 409 Forced or Compulsory Labor 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32/33, 37GRI 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor 32, 34 2, 4


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GRI Standards Page/Annotation UNGCGRI 414 Supplier Social Assessment 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 32–35, 51GRI 414-1 New suppliers that were screened using social criteria 33GRI 415 Public Policy 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 54GRI 415-1 Political contributions 54GRI 416 Customer Health and Safety 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 12, 21GRI 416-1 Assessment of the health and safety impacts of product and service categories 20/21GRI 419 Socioeconomic Compliance 2016GRI 103 Management Approach 2016 (including 103-1, 103-2, 103-3) 50–52GRI 419-1 Non-compliance with laws and regulations in the social and economic area AR 119–121

Further Disclosures1

GRI 201-1 Direct economic value generated and distributed 5, 55/56; AR 32GRI 201-2 Financial implications and other risks and opportunities due to climate change 10 7GRI 201-3 Defined benefit plan obligations and other retirement plans 39; AR 93–96GRI 301-1 Materials used by weight or volume 30 7, 8GRI 303-1 Water withdrawal by source 30/31GRI 306-1 Water discharge by quality and destination 31 8GRI 306-2 Waste by type and disposal method 30 8GRI 306-4 Transport of hazardous waste 30 8GRI 406-1 Incidents of discrimination and corrective actions taken 40 6GRI 417-1 Requirements for product and service information and labeling 22


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1 The information outlined under “Further Disclosures” is comprised of issues that were deemed immaterial as part of the 2018 materiality analysis. Nevertheless, these were disclosed for transparency reasons. They form part of the following standards: GRI 201: Economic Performance 2016; GRI 301: Materials 2016; GRI 303: Water 2016; GRI 306: Effluents and Waste 2016; GRI 406: Non-discrimination 2016; and GRI 417: Marketing and Labelling 2016.





INDEPENDENT PRACTITIONER’S REPORT ON A LIMITED ASSURANCE ENGAGEMENT ON SUSTAINABILITY INFORMATION¹

To MAN SE, MunichWe have performed a limited assurance engagement on the disclosures denoted with in the CR-Report 2018 of MAN SE, Munich (hereinafter: “the Company”), for the period from 1 January to 31 December 2018 (here-inafter: “CR-Report”). Our engagement in this context relates solely to the disclosures denoted with the symbol .

Responsibilities of the Executive DirectorsThe executive directors of the Company are responsible for the prepara-tion of the CR-Report in accordance with the criteria as set out in the Sus-tainability Reporting Standards of the Global Reporting Initiative (herein-after: “GRI-Criteria”) and for the selection of the disclosures to be evaluated. This responsibility of Company’s executive directors includes the selection and application of appropriate methods of sustainability report-ing as well as making assumptions and estimates related to individual sus-tainability disclosures, which are reasonable in the circumstances. Fur-thermore, the executive directors are responsible for such internal control as they have considered necessary to enable the preparation of a Report that is free from material misstatement whether due to fraud or error.

Independence and Quality Control of the Audit FirmOur audit firm applies the national legal requirements and professional standards – in particular the Professional Code for German Public Audi-tors and German Chartered Auditors (“Berufssatzung für Wirtschafts-prüfer und vereidigte Buchprüfer”: “BS WP/vBP”) as well as the Standard on Quality Control 1 published by the Institut der Wirtschaftsprüfer (Insti-

tute of Public Auditors in Germany; IDW): Requirements to quality control for audit firms (IDW Qualitätssicherungsstandard 1: Anforderungen an die Qualitätssicherung in der Wirtschaftsprüferpraxis – IDW QS 1) – and accordingly maintains a comprehensive system of quality control includ-ing documented policies and procedures regarding compliance with ethi-cal requirements, professional standards and applicable legal and regula-tory requirements.

Practitioner’s ResponsibilityOur responsibility is to express a limited assurance conclusion on the dis-closures denoted with in the CR-Report based on the assurance engage-ment we have performed. We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements other than Audits or Reviews of Historical Finan-cial Information, issued by the IAASB. This Standard requires that we plan and perform the assurance engagement to allow us to conclude with lim-ited assurance that nothing has come to our attention that causes us to believe that the disclosures denoted with in the Company’s CR-Report for the period from 1 January to 31 December 2018 has not been prepared, in all material aspects, in accordance with the relevant GRI-Criteria. This does not mean that a separate conclusion is expressed on each disclosure so denoted. In a limited assurance engagement the assurance procedures are less in extent than for a reasonable assurance engagement and therefore a substantially lower level of assurance is obtained. The assurance proce-dures selected depend on the practitioner’s judgment.

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¹ PricewaterhouseCoopers GmbH has performed a limited assurance engagement on the German version of the CR-Report 2018 of MAN SE, Munich, and issued an independent assurance report in German language, which is authoritative. The following text is a translation of the independent assurance report.

66 MAN 2018 GRI Report Annex – limited assurance report

Within the scope of our assurance engagement, we performed amongst others the following assurance procedures and further activities:

Inquiries of personnel involved in the preparation of the CR-Report regarding the preparation process, the underlying internal control sys-tem and selected sustainability information

Inspection of additional documents and supportive systems

Identification of the likely risks of material misstatement of the CR-Report under consideration of the GRI-Criteria

Assessment of sites to obtain insights with regard to effectiveness of reporting processes and internal systems at site level: – MAN Energy Solutions SE, Augsburg, Germany – MAN Energy Solutions SE, Deggendorf, Germany – MAN Truck & Bus AG, Nuremberg, Germany – MAN Truck & Bus AG, Steyr, Austria (webmeeting) – MAN Türkiye A.Ş., Ankara, Turkey

Analytical procedures on selected sustainability information of the CR-Report

Assessment of the presentation of selected sustainability information in the CR-Report regarding the sustainability performance

Comparison of selected disclosures with corresponding data in the consolidated financial statements and in the group management report

Assurance ConclusionBased on the assurance procedures performed and assurance evidence obtained, nothing has come to our attention that causes us to believe that the disclosures denoted with in the Company’s CR-Report for the period from 1 January to 31 December 2018 have not been prepared, in all material aspects, in accordance with the relevant GRI-Criteria.

Intended Use of the Assurance ReportWe issue this report on the basis of the engagement agreed with the Com-pany. The assurance engagement has been performed for purposes of the Company and the report is solely intended to inform the Company as to the results of the assurance engagement. The report is not intended to provide third parties with support in making (financial) decisions. Our responsibility lies solely toward the Company. We do not assume any responsibility towards third parties.

Munich, 5 June 2019

PricewaterhouseCoopers GmbHWirtschaftsprüfungsgesellschaft

Klaus Schuster Hendrik FinkWirtschaftsprüfer Wirtschaftsprüfer (German Public Auditor) (German Public Auditor)

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ABOUT THIS REPORT

[102-40] Since 2011, each year we have provided our stakeholders with information about our progress in implementing our corporate responsi-bility (CR) strategy. This 2018 GRI Report is aimed at analysts, investors, customers, and business partners. It presents relevant management approaches, measures, indicators, and data related to sustainable business practices in the MAN Group. Furthermore, it outlines the ways in which we live up to our commitment to the Ten Principles of corporate responsibil-ity defined by the UN Global Compact. An interactive abridged version of the report is available online.

Report structure The structure of the GRI Report is based on the five areas of our CR strat-egy: responsibility for products, responsibility in production, responsibil-ity in the supply chain, responsibility for people, and responsibility for society and integrity. In each of the five chapters, we discuss the manage-ment approaches taken in the relevant area of action, as well as measures taken and progress made in 2018.

Report standard[102-46] This report was prepared in accordance with the GRI Standards: Core option. MAN’s CR reporting was preceded by a process of materiality analysis which also took stakeholder views into account – as described on pages 7f. The GRI Content Index outlines our compliance with the relevant GRI indicators (, pages 60ff.), and represents our UN Global Compact Communication on Progress.

Report auditWe voluntarily submitted our 2018 GRI Report to a comprehensive inde-pendent audit by PricewaterhouseCoopers (PwC), which was conducted in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (revised) (, pages 65f.). The focus of the audit was on employee and environmental indicators in production operations. The verified con-tent is marked in the report with a symbol.

Scope[102-45] The 2018 reporting period is identical with the 2018 fiscal year, which runs from January 1 through December 31. The closing date for con-tributions was May 15, 2019. An annual reporting cycle applies. The 2017 GRI Report was published in June 2018. Unless otherwise specified, the facts and figures published in this report relate to the entire MAN Group (MAN SE including subsidiaries, but excluding joint ventures, associated companies, and financial investments). MAN SE’s Power Engineering business (Renk and MAN Energy Solutions) was sold to a subsidiary of Volkswagen AG at the end of 2018 at the instructions of TRATON SE. Data and facts on the Power Engineering business area are included in this report for the last time.

Editorial informationIn the interests of readability, we have not used the full legal names of MAN SE and its subgroups.

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�� Independent Practitioner’s Llimited Assurance Report




CREDITS AND ADDITIONAL INFORMATION

CreditsPublished byMAN SECorporate ResponsibilityDachauer Strasse 64180995 Munich, Germanywww.corporate.man.eu

ContactPeter AttinSenior Vice PresidentCorporate ResponsibilityPhone: +49 89 36098-226E-mail: [email protected]

Editorial deadline May 15, 2019

Copyright © 2019 MAN SE

Concept, texts, and layoutakzente kommunikation und beratung GmbH, Munich

Further information

CORPORATE RESPONSIBILITY AT MAN 2018 MAN CR Report, including abridged version

MAN Global Corporate Website

THE MAN GROUP ON THE INTERNET MAN Global Corporate Website

MAN Truck & Bus

MAN Energy Solutions

SOCIAL MEDIA MAN Truck & Bus Twitter

MAN Truck & Bus Facebook

MAN Energy Solutions Twitter

MAN Energy Solutions Facebook

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https://www.akzente.de/

http://www.cr-bericht2018.man/

https://www.corporate.man.eu/en/responsibility/cr-strategy/at-a-glance/At-a-glance.html

https://www.corporate.man.eu/en/index.html

https://www.mantruckandbus.com/en/index.html

https://www.man-es.com

https://twitter.com/man_group

https://www.facebook.com/mantruckandbus

https://twitter.com/man_e_s

https://www.facebook.com/MANEnergySolutionsSE

MAN SEDachauer Strasse 64180995 Munich, GermanyPhone: +49 89 36098-0Fax: +49 89 36098-250www.corporate.man.eu

http://www.corporate.man.eu

corporate responsibility at man 2018 · 2020-04-07 · taking social and ecological responsibility...

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