GRI and UN Global Compact index

The MTU Aero Engines 2019 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

Organizational profile (102-1 – 102-13)

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	2019 Annual Report, p. 49
102-5		Nature of ownership and legal form	MTU Aero Engines
102-5		Nature of ownership and legal form	2019 Annual Report, p. 30
102-6		Markets served	2019 Annual Report, p. 149
102-7		Scale of organization	MTU Aero Engines
102-8	6	Total workforce	MTU as an employer
102-8	6	Total workforce	Diversity and inclusion Information on the proportion of women by employment type and employment contract is treated as confidential at MTU.
102-9		Supply chain	Supplier management
102-10		Changes to the supply chain	Supplier management
102-11		Precautionary approach	Environmental management
102-12		External charters, principles, or other initiatives	Compliance
			Climate and flying
			Environmental management
			MTU as an employer
			Diversity and inclusion
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 (102-14)

GRI standard	UNGC principle		Reference/Comment
102-14		Statement from the Executive Board	Foreword by the Chief Executive Officer

Ethics and integrity (102-16)

GRI standard	UNGC principle		Reference/Comment
102-16	10	Values, principles and codes of conduct	Compliance
			MTU as an employer

Corporate governance (102-18)

GRI standard	UNGC principle		Reference/Comment
102-18		Governance structure	2019 Annual Report, p. 26-27, 44-45

Stakeholder engagement (102-40 – 102-44)

GRI standard	UNGC principle		Reference/Comment
102-40		Stakeholder groups	Stakeholder dialogue
102-41	3	Collective bargaining agreements	MTU as an employer
102-42		Identifying and selecting stakeholders	Stakeholder dialogue
102-43		Approach to stakeholder engagement	Stakeholder dialogue
			Product quality and flight safety
			Research and development
			Environmental management
			MTU as an employer
102-44		Key topics and concerns of stakeholders	Stakeholder dialogue

Reporting practice (102-45 – 102-56)

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	Some climate figures from previous years have been recalculated. In such cases, this is indicated alongside the data in question in the 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

Management approach (103-1 – 103-3)

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	1-10	Management approach and its components	The management approaches are presented for each material topic.
103-3	1-10	Evaluation of the management approach	Sustainability strategy and organization
			Material topics
			Stakeholder dialogue
			Management approaches to the material topics

Topic-specific standards

Economic standards (201-1 – 206-1)

GRI standard	UNGC principle		Reference/Comment
		Economic performance
103-2, 103-3	7	Management approach	Sustainability strategy and organization
			Corporate social responsibility
			Climate and flying
201-1		Value generated and distributed	MTU Aero Engines
201-1		Value generated and distributed	Corporate social responsibility Key figures are not broken down by market or region
201-2	7	Financial implications and risks due to climate change	Climate and flying
201-3		Defined benefit plan and retirement plans	MTU as an employer
		Procurement practices
103-2, 103-3		Management approach	Supplier management
204-1		Proportion of spending on local suppliers	Supplier management The company’s major sites are in Germany, Poland and Canada.
		Anti-corruption
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 standards (301-1 –308-2)

GRI standard	UNGC principle		Reference/Comment
		Materials
103-2, 103-3	7, 8	Management approach	Environmental management
103-2, 103-3	7, 8	Management approach	Conservation of resources
301-1	7, 8	Materials used by weight or volume	Conservation of resources
301-2	7, 8	Recycled input materials used	Conservation of resources
301-2	7, 8	Recycled input materials used	Product quality and flight safety
301-3	8	Recycled products and their packaging materials	Conservation of resources
		Energy
103-2, 103-3	7, 8	Management approach	Environmental management
103-2, 103-3	7, 8	Management approach	Conservation of resources
302-1	7, 8	Energy consumption within the organization	Conservation of resources
302-4	7, 8	Reduction of energy consumption	Conservation of resources
302-5	8, 9	Reductions in energy requirements of products and services	Climate and flying
		Water and effluents
103-2, 103-3	7, 8	Management approach	Environmental management
103-2, 103-3	7, 8	Management approach	Conservation of resources
303-1	7, 8	Interactions with water as a shared resource	Conservation of resources
303-3	7, 8	Water withdrawal	Conservation of resources
303-4	7, 8	Water discharge	Conservation of resources
303-5	7,8	Water consumption	Conservation of resources
		Emissions
103-2, 103-3	7-9	Management approach	Environmental management
103-2, 103-3	7-9	Management approach	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	7-9	Other indirect (Scope 3) greenhouse gas emissions	Emissions
305-3	7-9	Other indirect (Scope 3) greenhouse gas emissions	Climate and flying
305-4	7, 8	Intensity of greenhouse gas emissions	Emissions
305-5	8, 9	Reduction of greenhouse gas emissions	Emissions
305-7	7, 8	Significant airborne emissions	Emissions To evaluate emissions, we use the emission factors from the German Environment Agency’s ProBas database. Where we deviate from this: for sulfur dioxide we use emission factors from our own measurements for kerosene; for nitrogen oxide and carbon monoxide from the operation of engines we use MTU-specific factors (average values from NOx and CO emissions according to the ICAO database for all engines tested by us for the climb out operating point; for 2019 we adjusted the average value to account for two missing engine types, thus increasing the emission factors for NOx by 9% and for CO by 30%). For indirect emissions we use specific, locally adjusted emission factors based on ProBas.
		Waste
103-2, 103-3	7, 8	Management approach	Environmental management
103-2, 103-3	7, 8	Management approach	Conservation of resources
306-2	7	Waste by type and disposal method	Conservation of resources
306-3	7	Spills	Conservation of resources
		Environmental compliance
103-2, 103-3	7	Management approach	Environmental management
307-1	7	Non-compliance with environmental laws and regulations	Environmental management
		Supplier environmental assessment
103-2, 103-3	8	Management approach	Supplier management
308-1	7	New suppliers that were screened using environmental criteria	Supplier management
308-2	8	Negative environmental impacts in the supply chain	Supplier management

Social standards (401-1 – 419-1)

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
401-1	6	Employee turnover	Diversity and inclusion
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 3 working days for temporary contracts due to be replaced and 1–3 months for permanent contracts dependent on the length of the term of employment. Canada: 2 weeks. USA: 60 days for matters affecting 50% or more of the workforce.
		Occupational health and safety
103-2, 103-3		Management approach	Occupational health and safety
403-1		Occupational health and safety management system	Occupational health and safety
403-2		Hazard identification, risk assessment and investigation of incidents	Occupational health and safety
403-3		Occupational health services	Occupational health and safety
403-4		Worker participation, consultation, and communication	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 .
403-5		Worker training	Occupational health and safety
403-6		Promotion of worker health	Occupational health and safety
403-8		Workers covered by occupational health and safety management system	Occupational health and safety
403-9		Work-related ill health	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 equality of opportunity
103-2, 103-3	6	Management approach	Diversity and inclusion
405-1	6	Diversity of governance bodies and employees	Diversity and inclusion
405-2	6	Ratio of basic salary and remuneration of women to men	MTU as an employer
		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
407-1	2, 3		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
408-1	2, 5		Supplier management
		Forced or compulsory labor
103-2, 103-3	2, 4	Management approach	Human rights
103-2, 103-3	2, 4	Management approach	Supplier management
409-1	2, 4	Operations and suppliers with significant risk for incidents of forced and compulsory labor	Human rights
409-1	2, 4		Supplier management
		Human rights assessment
103-2, 103-3	1, 2	Management approach	Human rights
103-2, 103-3	1, 2	Management approach	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
412-3	2		Supplier management
		Supplier social assessment
103-2, 103-3	2	Management approach	Human rights
103-2, 103-3	2	Management approach	Supplier management
414-1	2-5	New suppliers that were screened using social criteria	Human rights
414-1	2-5	New suppliers that were screened using social criteria	Supplier management
414-2	2-5	Negative social impacts in the supply chain and actions taken	Human rights
414-2	2-5		Supplier management
		Public policy
103-2, 103-3	10	Management approach	Stakeholder dialogue
415-1	10	Political contributions	Stakeholder dialogue
		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
417-3		Incidents of non-compliance concerning marketing communications	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

More information about:
The GRI standards for sustainability reporting
The ten principles of the UN Global Compact