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2018 Sustainability Report

2018 Sustainability Report

GRI and UN Global Compact index

  

The MTU Aero Engines 2018 Sustainability Report was drawn up in compliance with the Global Reporting Initiative (GRI) and meets the GRI standards (“Core” option). The GRI index contains cross-references of the GRI disclosures to the individual chapters in the report. Furthermore, the Sustainability Report serves to provide information on progress made in accordance with the UN Global Compact (UNGC). In this index, you will also find cross-references of the statements in this report to the ten principles of the UNGC.


  

General disclosures 2016

Organizational profile

 

 

GRI standard

UNGC principle

 

Reference/Comment

102-1

 

Name of the organization

MTU Aero Engines

102-2

 

Activities, brands, products and services

MTU Aero Engines

102-3

 

Organization’s headquarters

MTU Aero Engines

102-4

 

Countries where the organization operates

2018 Annual Report, p. 67

102-5

 

Nature of ownership and legal form

MTU Aero Engines

2018 Annual Report, p. 38

102-6

 

Markets served

2018 Annual Report, p. 165

102-7

 

Scale of organization

MTU Aero Engines

102-8

6

Total workforce

MTU as an employer Information on the proportion of women by employment type and employment contract is treated as confidential at MTU.

102-9

 

Supply chain

Sustainable supplier management

102-10

 

Changes to the supply chain

none

102-11

 

Precautionary approach

Environmental management

102-12

 

External charters, principles, or other initiatives

Compliance

Eco-efficient engines

Environmental management

MTU as an employer

Diversity and equal opportunity

102-13

 

Memberships

Selection:

Aviation Initiative for Renewable Energy in Germany e.V. (aireg)

Bauhaus Luftfahrt e.V.

Bavarian Employers’ Associations for the Metalworking and Electrical Industries (bayme)

bavAIRia e.V.

German Aerospace Industries Association (BDLI)

Federation of German Security and Defence Industries (BDSV)

Deutsche Gesellschaft für Luft- und Raumfahrt – Lilienthal-Oberth e.V. (DGLR)

Friends and Sponsors of the Deutsches Museum

Deutsches Verkehrsforum e.V.

German Aerospace Center (DLR)

Enterprise for Health

European Aerospace Quality Group

Forum Luft- und Raumfahrt e.V.

IATA Strategic Partnerships

Chamber of Commerce and Industry for Munich and Upper Bavaria (IHK)

Münchener Bildungsforum gem. n.e.V. (Munich-based network for employee training and HR development)

Stifterverband für die Deutsche Wissenschaft (sponsors’ association for German science)

Trace International, Inc.

Bavarian Industry Association

Bavarian Employers’ Associations for the Metalworking and Electrical Industries (vbm)

UN Global Compact (Signatory)

Association of German Engineers (VDI)

 

Strategy

 

 

GRI standard

UNGC principle

 

Reference/Comment

102-14

 

Statement from the Executive Board

Foreword by the Chief Executive Officer

  

Ethics and integrity

 

 

GRI standard

UNGC principle

 

Reference/Comment

102-16

10

Values, principles and codes of conduct

Compliance

MTU as an employer

 

Corporate governance

 

 

GRI standard

UNGC principle

 

Reference/Comment

102-18

 

Governance structure

2018 Annual Report, p. 34–35, 62–63

 

Stakeholder engagement

 

 

GRI standard

UNGC principle

 

Reference/Comment

102-40

 

Stakeholder groups

Stakeholder dialog

102-41

3

Collective bargaining agreements

MTU as an employer

102-42

 

Identifying and selecting stakeholders

Stakeholder dialog

102-43

 

Approach to stakeholder engagement

Stakeholder dialog

102-44

 

Key topics and concerns of stakeholders

Stakeholder dialog

 

Reporting practice

 

 

GRI standard

UNGC principle

 

Reference/Comment

102-45

 

Consolidated Group entities

About this report

102-46

 

Material aspects identified

Material topics

102-47

 

List of material topics

Material topics

102-48

 

Restatements of information

About this report

102-49

 

Changes in reporting

About this report

102-50

 

Reporting period

About this report

102-51

 

Date of most recent report

About this report

102-52

 

Reporting cycle

About this report

102-53

 

Contact point for questions regarding the report

About this report

102-54

 

Option to apply GRI standards

About this report

102-56

 

External assurance

About this report

 

Management approach 2016

Management approach

 

 

GRI standard

UNGC principle

 

Reference/Comment

103-1

 

Boundaries to material topics

Materiality principle MTU determines the relevance of the material topics along the value chain as follows: the relevance of upstream and downstream activities is based on information supplied to MTU by business contacts. We deem any topic to be relevant that plays a significant role in the industry and that has a bearing on MTU’s business activities.

103-2

 

Management approach and its components

The management approaches are presented for each material topic.

103-3

 

Evaluation of the management approach

Sustainability strategy and organization

Material topics

Stakeholder dialog

Management approaches to the material topics

  

Topic-specific standards 2016

Economic

 

 

GRI standard

UNGC principle

 

Reference/Comment

 

 

Economic performance

 

103-2, 103-3

7

Management approach

MTU Aero Engines

Sustainability strategy and organization

Corporate social responsibility

Eco-efficient engines

201-1

 

Value generated and distributed

MTU Aero Engines

Corporate social responsibility Key figures are not broken down by market or region

201-2

7

Financial implications and risks due to climate change

Eco-efficient engines

 

 

Procurement practices 2016

 

103-2, 103-3

 

Management approach

Sustainable supplier management

204-1

 

Proportion of spending on local suppliers

Sustainable supplier management

 

 

Anti-corruption 2016

 

103-2, 103-3

10

Management approach

Compliance

205-1

10

Operations assessed for risks related to corruption

Compliance

205-2

10

Information and training about anti-corruption

Compliance

205-3

10

Confirmed incidents of corruption and actions taken

Compliance

 

 

Anti-competitive behavior

 

103-2, 103-3

 

Management approach

Compliance

206-1

 

Legal actions for anti-competitive behavior, anti-trust and monopoly practices

Compliance

 

Environmental

 

 

GRI standard

UNGC principle

 

Reference/Comment

 

 

Materials

 

103-2, 103-3

7, 8

Management approach

Environmental management

Conservation of resources

301-1

7, 8

Materials used by weight or volume

Conservation of resources

301-3

8

Recycled products and their packaging materials

Conservation of resources

 

 

Energy

 

103-2, 103-3

7, 8

Management approach

Environmental management

Conservation of resources

302-1

8, 9

Energy consumption within the organization

Conservation of resources

302-4

8, 9

Reduction of energy consumption

Conservation of resources

302-5

8, 9

Reductions in energy requirements of products and services

Eco-efficient engines

 

 

Water

 

103-2, 103-3

7, 8

Management approach

Environmental management

Conservation of resources

303-1

7, 8

Water withdrawl by source

Conservation of resources

303-2

7, 8

Water sources affected

Conservation of resources

303-3

7, 8

Water recycled and reused

Conservation of resources

 

 

Emissions

 

103-2, 103-3

7-9

Management approach

Environmental management

Emissions

305-1

7, 8

Direct (Scope 1) greenhouse gas emissions

Emissions

305-2

7, 8

Energy indirect (Scope 2) greenhouse gas emissions

Emissions

305-3

7, 8, 9

Other indirect (Scope 3) greenhouse gas emissions

Emissions

Eco-efficient engines

305-5

8, 9

Reduction of greenhouse gas emissions

Emissions

305-7

7, 8

Significant air emissions

Emissions

 

 

Effluents and waste

 

103-2, 103-3

 

Management approach

Environmental management

Conservation of resources

306-1

8

water discharge

Conservation of resources

306-2

8

Waste by type and disposal method

Conservation of resources

306-3

8

Spills

Conservation of resources

 

 

Environmental compliance

 

103-2, 103-3

 

Management approach

Environmental management

307-1

8

Non-compliance with environmental laws and regulations

Environmental management

 

 

Supplier environmental assessment

 

103-2, 103-3

8

Management approach

Sustainable supplier management

308-1

8

New suppliers that were screened using environmental criteria

Sustainable supplier management

308-2

8

Negative environmental impacts in the supply chain

Sustainable supplier management

 

Social

 

 

GRI standard

UNGC principle

 

Reference/Comment

 

 

Employment

 

103-2, 103-3

6

Management approach

MTU as an employer

401-1

6

Employee turnover

MTU as an employer

401-2

 

Benefits provided to full-time employees

MTU as an employer

401-3

6

Parental leave

MTU as an employer

 

 

Labor/management relations

 

103-2, 103-3

 

Management approach

MTU as an employer

402-1

3

Minimum notice periods regarding operational changes

Germany: Agreements between the employer and the works council that are governed by collective agreements can be terminated with three months’ notice under Section 77 of the German Works Council Constitution Act (Betriebsverfassungsgesetz). As a rule, this is also laid down in the collective agreements. In cases in which the arbitration body’s decision can overrule an agreement between the works council and employer, the regulations governing the notice period remain valid until replaced. Also laid down in the collective agreements are the notice periods for the assertion of claims for employers as well as employees. In accordance with Polish law, in Poland this period is two weeks for temporary contracts and one to three months for permanent contracts, dependent on the length of the term of employment. Canada: 60 days. US: According to the WARN Act.

 

 

Occupational health and safety

 

103-2, 103-3

 

Management approach

Occupational health and safety

403-1

 

Percentage of total workforce represented in formal joint management worker health and safety committees

Occupational health and safety The entire workforce of all our production sites is fully represented in the locally organized occupational safety committees, the composition of which reflects the legal requirements for employer and employee representation in the respective countries .

403-2

 

Injuries, occupational diseases, days lost and work-related fatalities

Occupational health and safety

 

 

Training and education

 

103-2, 103-3

6

Management approach

Employee development

404-1

6

Average hours of training per year per employee

Employee development

404-2

 

Lifelong learning

Employee development

404-3

6

Percentage of employees receiving regular performance reviews

MTU as an employer

 

 

Diversity and equal opportunity

 

103-2, 103-3

6

Management approach

Diversity and equal opportunity

405-1

6

Diversity of governance bodies and employees

Diversity and equal opportunity

405-2

6

Ratio of basic salary and remuneration of women to men

MTU as an employer, remuneration and additional benefits

 

 

Non-discrimination

 

103-2, 103-3

6

Management approach

Human rights

406-1

6

Cases of discrimination and corrective actions taken

Human rights

 

 

Freedom of association and collective bargaining

 

103-2, 103-3

2, 3

Management approach

Human rights

407-1

2, 3

Operations and suppliers for which the right to freedom of association and collective bargaining may be at risk

Human rights

Sustainable supplier management

 

 

Child labor

 

103-2, 103-3

2, 5

Management approach

Human rights

408-1

2, 5

Operations and suppliers at significant risk for incidents of child labor

Human rights

Sustainable supplier management

 

 

Forced or compulsory labor

 

103-2, 103-3

2, 4

Management approach

Human rights

Sustainable supplier management

409-1

2, 4

Operations and suppliers with significant risk for incidents of forced and compulsory labor

Human rights

Sustainable supplier management

 

 

Human rights assessment

 

103-2, 103-3

1, 2

Management approach

Human rights

Sustainable supplier management

412-1

2

Operations that have been subject to human rights reviews

Human rights

412-2

1

Employee training on human rights policies or procedures

Compliance

412-3

2

Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Human rights

Sustainable supplier management

 

 

Supplier social assessment

 

103-2, 103-3

2

Management approach

Human rights

Sustainable supplier management

414-1

2

New suppliers that were screened using social criteria

Human rights

Sustainable supplier management

414-2

2

Negative social impacts in the supply chain and actions taken

Human rights

Sustainable supplier management

 

 

Public policy

 

103-2, 103-3

10

Management approach

Stakeholder dialog

415-1

10

Political contributions

Stakeholder dialog

 

 

Customer health and safety

 

103-2, 103-3

 

Management approach

Product quality and flight safety

416-1

 

Products and services for which health and safety impacts were assessed

Product quality and flight safety

416-2

 

Incidents of non-compliance concerning the health and safety impacts of products and services

Product quality and flight safety

 

 

Marketing and labeling

 

103-2, 103-3

 

Management approach

Product quality and flight safety

417-1

 

Requirements for product labelling and information

Product quality and flight safety

417-2

 

Incidents of non-compliance concerning product labeling and information

Product quality and flight safety In the reporting period, there were no incidents of non-compliance with the regulations.

 

 

Customer privacy

 

103-2, 103-3

 

Management approach

Compliance

418-1

 

Substantiated complaints concerning breaches of data protection

Compliance

 

 

Socioeconomic compliance

 

103-2, 103-3

 

Management approach

Compliance

419-1

 

Non-compliance with laws and regulations in the social and economic area

Compliance

 

Materiality principle GRI 103-1

Material topics

Relevance for MTU along the value chain

 

Upstream activities (e.g. supply chain)

Activities within the MTU group

Downstream activities (e.g. flights operated by airlines)

Long-term value creation

significant

significant

significant

Anti-corruption

significant

significant

significant

Stakeholder dialog

 

significant

significant

Product quality and flight safety

significant

significant

significant

Trade compliance

significant

significant

significant

IT security and data protection

significant

significant

significant

Fuel efficiency and CO2emission of products

 

significant

significant

Environmental and occupational safety compliance

significant

significant

significant

Exhaust emission of products

 

significant

significant

Noise emission of products*

 

significant

significant

Innovation

significant

significant

significant

Responsible sourcing OEM business

significant

significant

significant

Responsible sourcing MRO business

significant

significant

significant

Environmental management: energy

 

significant

 

Environmental management: waste

 

significant

 

CO2 emissions at production sites

 

significant

 

Environmental management: water

 

significant

 

Noise abatement at production sites

 

significant

 

Human rights

significant

significant

significant

Occupational safety

significant

significant

significant

Employee development

 

significant

significant

Health management

 

significant

 

Diversity

 

significant

 

Work-life balance

 

significant

 

Demographic change

 

significant

 

Corporate citizenship

 

significant

 

*material topic for commercial aircraft engines due to inclusion in certification specifications


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