2020 Sustainability Report

INTRODUCTION

Foreword by the Chief Executive Officer

portrait

Reiner Winkler

Chief Executive Officer
MTU Aero Engines AG

 

Dear readers,

Renewables are expanding apace, with global installed capacity constantly growing. According to the International Renewable Energy Agency (IRENA), more than 80% of the increase in power generation capacity in 2020 is attributable to renewables—a new record. This marks the start of a new decade of green energy and points to the path of decarbonization that the economy and society must follow. We, too, are setting the course for a green future for aviation and for MTU. And this in a time that presents major challenges we must all strive to overcome. The crisis we are facing as a result of the coronavirus pandemic has highlighted the importance of decisive and responsible action. At the same time, we should see it as an opportunity for change—and that is precisely what we are doing.

Last year, we began preparations for our ecoRoadmap, which aims to make MTU carbon-neutral in the long term. Having launched the project a few months ago, our first aim is to make operations at our largest production site in Munich climate-neutral by late 2021. Efficiency improvements, emission reductions and high-quality offsets should get us there. This project is visible on the roof of our logistics center, where we have installed our first photovoltaic system to generate our own green energy. We are also examining whether to do the same at other production sites. In the long term, we want all our production sites to be carbon-neutral in an effort to support the goal set out in the Paris Agreement: limiting global warming preferably to 1.5 degrees Celsius by 2050.

“For some time now in our product development, our Clean Air Engine Agenda has stood for a climate transformation for aviation. Emissions-free flight is the vision that drives us. It is a long-term goal that is also in line with the Paris Agreement.”

We want our ecoRoadmap to achieve for our site operations what our Clean Air Engine Agenda has stood for in our product development for some time now: a climate transformation for aviation. Emissions-free flight is the vision that drives us. It is a long-term goal that is also in line with the Paris Agreement, and here, too, we made progress in 2020. For example, we are committed to the concept of hydrogen-powered fuel cells and have established our own development team, which is working hard to prepare for the first flight of a prototype. We expect this will occur in the next few years. In addition, we are pursuing the concept of a propulsion system that employs a heat exchanger to use the energy from the engine’s exhaust gas stream and that would be suitable for powering long-haul aircraft. In our view, sustainable aviation fuels are just as essential for a green future in aviation; these are fuels that can be used in conjunction with existing infrastructures and engine architectures today to reduce emissions that have an effect on the climate.

“Another key consideration in 2020 was occupational safety, with health management to provide our employees with sufficient protection against infection. We took comprehensive measures to help combat the coronavirus pandemic.”

Bold, creative and innovative ideas are born in an environment that motivates and inspires, offering recognition and respect. We are committed to embracing diversity more than ever because, especially in times of transformation, diversity and integration are crucial to effecting successful and sustainable change. Another key consideration in 2020 was occupational safety, with health management to provide our employees with sufficient protection against infection. We took comprehensive measures to help combat the coronavirus pandemic. The crisis has made us all aware of the urgency of digitalization. We are hard at work on this task as well—regarding products, production and new forms of collaboration within MTU.

We also assume responsibility for the supply chain. We attach great importance to safeguarding the respect of human rights in suppliers’ upstream production processes for our components. As part of our due diligence, we carry out supplier risk analyses. We have refined these procedures so we can further enhance our assessment of potential risks, and we want to integrate them more tightly into our processes. We are also planning to conduct more stringent audits of our suppliers’ compliance with sustainability criteria.

“We want to devote more of our efforts to medium- and long-term goals across the whole of MTU. My colleagues on the Executive Board and I are also opting to be measured more closely in terms of sustainability.”

All the topics addressed are embedded in a sustainability strategy that we are currently reworking in order to devote more of our efforts to medium- and long-term goals across the whole of MTU. My colleagues on the Executive Board and I are also opting to be measured more closely in terms of sustainability. Starting in the 2021 business year, MTU Executive Board members’ variable compensation will reflect non-financial performance indicators.

The target year for attaining the UN’s Sustainable Development Goals is 2030, and we want our sustainability commitment to contribute to those efforts. Moreover, we have been committed to the ten principles of the UN Global Compact since 2011. Our foundation for integrity in business and labor relations is our in-house compliance management system and a binding Code of Conduct for all employees and managers.

So far, we have weathered the crisis well. We are particularly pleased that no MTU location has emerged as a coronavirus hotspot to date. From my point of view, and judging by the feedback from managers and employees, we enjoy a good level of cohesion in the company. For example, we have set up a solidarity fund financed by managers, the Executive Board and the Supervisory Board for employees suffering particular hardship as a result of short-time working.

“In our view, this transformation can succeed only if society as a whole pulls together, with the research community, industry and policymakers all collaborating closely.”

As a company and as a society, we are in the middle of change. Sustainable mobility—in our case, emissions-free flight—is one of the central challenges of our time. In our view, this transformation can succeed only if society as a whole pulls together, with the research community, industry and policymakers all collaborating closely. We clearly want to play our part and take on responsibility—and you can find out how in this Sustainability Report.

I hope you enjoy reading this report and watching the exciting videos of our employees talking about their projects and ideas. And please take advantage of the new opportunity to give us feedback directly. We look forward to a constructive exchange of ideas with you!

Yours sincerely,

Reiner Winkler
Chief Executive Officer

MTU Aero Engines AG


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