2018 Sustainability Report

Goals set and achieved in 2018

Sustainable governance
	Goal	Status/ Deadline	Comments
Compliance	Reorganize Compliance Board	Achieved	The new appointments are presented under Compliance.
	Introduce Compliance Officer function	Achieved	Measure taken from compliance system review
	Introduce a web-based reporting system	2019	Measure taken from compliance system review
	Conduct regular compliance audits to ensure business processes comply with statutory requirements and guidelines	Ongoing
	Carry out employee training	Ongoing	In 2018, we conducted training on compliance issues, in particular on anti-corruption and international trade, as well as on the MTU Code of Conduct.
Stakeholder dialog	Communicate MTU’s contribution to the SDGs	2018/2019	Publish MTU’s contribution to the SDGs at www.mtu.de, further information in this report, flyer to follow in 2019
	Extend the stakeholder survey	2019	The online survey is supplemented by the topic of SDGs.
	Conduct stakeholder survey on sustainability at MTU	Ongoing	We have revised the online survey at www.mtu.de, and interviews have taken place with selected representatives of important stakeholder groups.
	Undertake non-financial reporting in accordance with the German CSR Guidelines Implementation Act	Ongoing	part of the Annual Report
	Reinforce sustainability aspects of stakeholder dialogs on established platforms	Ongoing
	Exchange more information with partners on sustainability issues	Ongoing
Sustainability management	Consolidate sustainability topics in the risk management process	Achieved	A quarterly survey on the key sustainability topics was launched in 2018.
	Expand CR Steering Committee and CR team	Achieved	The CR Board has been established as a decision-making body for sustainability, as has the CR Reporting function.
	Review CR management processes	Achieved
	Benchmark and introduction of CR database	2019
	Participate in sustainability ratings	Ongoing
	CR training	Ongoing	Train new CR team members and hold campus lecture

Product stewardship
	Goal	Status/ Deadline	Comments
Product quality and flight safety	Lower or at least keep the number of customer complaints stable at all locations compared to the previous year	Goal partly achieved	Achieved in 2018 at the majority of locations
	Launch improvement project for analyzing what went wrong if a customer complains	Achieved
	Run quality initiative at MTU Maintenance	2019
	Conduct monitoring and recertification audits for quality management systems	Ongoing
Climate strategy	Achieve a 15%* reduction in CO2 emissions with the first-generation geared turbofan	2020	Stage 1 of our climate strategy concluded with the entry into service of the first generation of the geared turbofan engine family (Claire 1). All models in the family will be rolled out into large-scale production by 2020.
	Achieve a 25%* reduction in CO2 emissions with the second-generation geared turbofan	2030	Implementation of the second stage (Claire 2); launch of numerous technology projects within the framework of the German federal government’s aviation research program (LuFo V-3) with the aim of reducing fuel consumption, commissioning of a new product-ready axial compressor at RWTH Aachen University to demonstrate advanced compressor technologies
	Achieve a 40%* reduction in CO2 emissions with an integrated ultra-efficient propulsion concept	2050	Implementation of the third stage (Claire 3); coordination of work content of a partner technology project to evaluate and demonstrate the feasibility of novel circular processes; investigation of hybrid-electric or all-electric powertrains for aircraft taxis or aircraft (19-seater) with partners in preparation
	Support the rollout of sustainable fuels with MTU engine expertise	Ongoing	e.g. by participating in research projects, studies and practical tests
Aircraft noise	Achieve a 20 dB** (cumulative) reduction in noise emissions relative to ICAO Stage 4 with the first-generation geared turbofan	2020	All models in the Pratt & Whitney GTF™ engine family will be rolled out into large-scale production by 2020.
	Achieve an 11 dB** reduction in noise emissions (per aircraft movement, corresponds to -55%) with the second-generation geared turbofan	2030	as per requirements stipulated in the European Strategic Research and Innovation Agenda (SRIA); launch of numerous technology projects within the framework of the German federal government’s aviation research program (LuFo V-3) with the aim of reducing noise emissions using enhanced noise measurement and calculation processes
	Achieve a 15 dB** reduction in noise emissions (per aircraft movement, corresponds to -65%) with the third-generation geared turbofan	2050	as per requirements stipulated in the European Strategic Research and Innovation Agenda (SRIA)

* compared to an engine from the year 2000, per passenger kilometer
** compared to an engine from the year 2000

Supply chain
	Goal	Status/ Deadline	Comments
Supplier management	Incorporate sustainability aspects into existing supplier audits	from 2019
	Conduct annual survey of all relevant suppliers on compliance with the Dodd-Frank Act concerning conflict minerals	Ongoing	For 75% of the Group reporting entity
	Require new suppliers to commit to the Code of Conduct	Ongoing	For 75% of the Group reporting entity
	Conduct standardized assessment of risks in the supply chain	Ongoing	Risk analysis by country and product group launched

Environmental protection in production
	Goal	Status/ Deadline	Comments
Reduced consumption of energy and resources	Reduce CO2 emissions by 25% at the Munich site as part of Clean Air Industrial Site (benchmark year: 1990)	2020
	Zero mission (zero emissions, zero waste) in Munich	Ongoing	e.g.: introduction of returnable cups at the German locations, Green Office: increased use of eco-friendly office materials, offer of eco-friendly travel alternatives in the travel portal for business travel bookings
	Promote sustainable mobility	Ongoing	We have installed electric charging spots at our Munich and Hanover sites, and we are operating additional electric vehicles for internal transport. Electric charging spots will soon be installed at the Ludwigsfelde site.
	Carry out employee training on sustainable resource consumption and the company’s environmental activities	Ongoing
	Reduce the environmental footprint of business travel (resource consumption and CO2 emissions) by making increased use of modern communication technologies	Ongoing
Energy-saving measures	Reduce the amount of energy required to power buildings	Ongoing
	Upgrade to LED lighting	Ongoing
	Shut down machines and systems during extended interruptions to operations	Ongoing
	Improve the efficiency of compressed air generation	Ongoing
	Use groundwater for cooling	Ongoing
Material efficiency	Sustainable manufacturing concepts: Apply new laser-based additive manufacturing techniques to build production parts	Ongoing	The range of parts is continuously being expanded; a department was set up in 2018 to cluster activities.
Material efficiency	Develop materials that are more lightweight and more resistant to extreme temperatures, resulting in lower fuel consumption and emissions.	Ongoing
Environmental certifications	Certification to ISO 14001 and validation under the Eco-Management and Audit Scheme (EMAS)	Ongoing	The Hannover and Berlin sites are certified to ISO 14001; the Munich, Hannover and Ludwigsfelde sites are validated under EMAS. The relevant audits were passed again in 2018.
Environmental certifications	Publish annual environmental statements for the German sites according to EMAS	Ongoing

Employees
	Goal	Status/ Deadline	Comments
Occupational safety	Limit reportable workplace accidents to a maximum of 20 within the MTU Group (production sites)	Not achieved	Yearly tolerance threshold for 2018 exceeded, mainly attributable to the higher number of accidents at the Munich and Ludwigsfelde locations, but MTU’s overall accident rate remains low at 4.3 accidents per 1,000 employees.
	Run surveillance and recertification audits in the MTU Group in accordance with OHSAS 18001 for sites that are already certified	Annual	Audits were passed again in 2018.
	Run a safety at work campaign with key topics	Ongoing	Local measures were implemented at production sites in 2018.
Occupational health	Conduct employee survey on occupational health management at the German sites	2019
	Obtain certification to ISO 45001	2019	MTU Maintenance Hannover is the first MTU site to be certified to this new standard.
	Promote a healthy diet	Ongoing
	Ergonomics management	Ongoing	Ergonomic measures in Industry 4.0 manufacturing processes were introduced in 2018.

Attractiveness as an employer	Strengthen international focus of employer branding	Ongoing
	Continue developing offers to improve people’s work-life balance	Ongoing
	Receive “Top Employer” status in Germany, Poland and British Columbia, Canada	Annual
	Roll out initiatives for company-sponsored childcare during summer vacation	Ongoing	Munich, Hannover
	Provide independent advice and facilitation services for family-related matters	Ongoing	The services offered are reviewed and enhanced on a regular basis, e.g. childcare network.
	Develop new offers to promote employee mobility	Ongoing	Consider a car sharing provider
Diversity & equal opportunities	Have a higher proportion of women in management positions (target: 13%) and on the Executive Board (target: 25%)	By 2022	Target agreement on women in management for Germany
	Heighten managers’ awareness of their responsibility to promote equal opportunities, particularly work-life balance	Ongoing
	Participate in initiatives designed to promote young female talent	Ongoing	e.g. Girls’ Day or the Research Camp for Girls
Training and development	Continue with Business Challenge training initiative	Achieved	Launch MTU Business Challenge III
	Introduce a new online learning portal for employees	2019	E-learning offerings have been expanded for German sites; international sites will be connected in 2019.
	Offer new training opportunities to promote greater internationalization	2019	Launch the next round of the International Leadership Program (ILP)
	Anchor the new leadership values company-wide	2019	As part of Business Challenge Leadership in Germany from 2018, international sites to follow from 2019
	Conduct management transition coaching	Ongoing
Employer/ employee dialog	Conduct regular employee surveys	Achieved	We have implemented measures for sites in Germany and Poland.
	Confer MTU Award to honor outstanding performance	2019
	Run company suggestion scheme (BVW) for putting employees’ ideas for improvement into practice	Ongoing	Launch of new BVW 2019

Society
	Goal	Status/ Deadline	Comments
Corporate volunteering	Support employee volunteer work	Ongoing
Investing in young talent	Endowed Chair in Structural Mechanics of Aircraft Engines at the University of Stuttgart’s Institute of Aircraft Propulsion Systems	Ongoing
	Provide financial backing for “Germany Scholarships”	Annual	Leibniz University of Hannover, Technische Universität Braunschweig
	MTU foundation with the goal of actively supporting development of female students in STEM disciplines	Ongoing
	Award the Wolfgang Heilmann Prize for young scientists	Annual
Promote science journalism	Sponsor the German award for aerospace journalism	Annual