Environment

We used 5% less electricity and district heating, reduced our solvent consumption by 17%, and invested €11 million in protecting the environment and the climate.

Scope

This chapter covers 30 sites in the MAN Truck & Bus, MAN Latin America, MAN Diesel & Turbo, and Renk divisions. Changes compared with last year are the inclusion of Querétaro (Mexico), Pinetown, and Olifantsfontein (both South Africa), and the exclusion of Vienna (Austria). The report thus covers about 89% of MAN’s sales revenue — two percentage points more than last year.

Direct emissions are reported using the emission factors published by the German Automobile Industry Association (VDA). Until the end of 2011 we used the VDA factors from 2005. As of the year under review, we use the VDA factors from 2009, which were published in January 2013. Indirect emissions are reported for 2010 and 2011 using the emission factors of the International Energy Agency (IEA) from 2005, and for 2012 using the IEA factors from 2012. The increase of 7 to 22% — depending on the country — in the emission factors for electricity is also reflected in our indicator “indirect CO2 emissions.”

Energy consumption

At 5.3 million gigajoules, total energy consumption by MAN remained at the same level as last year. In the reporting period we halved our consumption of heating oil from 0.35 to 0.17 million gigajoules. This is partly due to the replacement of heating oil by natural gas in MAN Diesel & Turbo and the temperature reduction in MAN Truck & Bus shops during non-productive periods. MAN Latin America had fewer production days in 2012, resulting in a 27% reduction in gasoline consumption. In 2012 we consumed hydrogen which we had purchased in 2011; as a result, we purchased 64% less hydrogen in the year under review than in the previous year.

Energy consumption

Energy consumption

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Direct energy consumption by primary energy source

Gigajoules 2010 2011 2012
 
Heating oil 337,825 346,379 170,727
Natural gas 1,449,428 1,412,854 1,490,778
Diesel 555,821 694,623 911,502
Gasoline 5,697 7,684 5,619
LPG 5,864 4,643 5,592
Acetylene 1,206 1,351 1,539
Hydrogen 6 11 4
Methanol 2,925 3,063 2,809
Heavy fuel oil 11,280 0 0
Lubricating oil 0 0 0

An increase in test runs of our engines in Nuremberg resulted in our diesel consumption being 31% higher than in the previous year. A new test series for natural gas engines increased our consumption of liquefied gas by 20% to 5,592 gigajoules. We implemented various measures to improve our environmental management and increase our energy efficiency. These are described in our first progress report on MAN’s Climate Strategy.

During the reporting period we reduced our indirect energy consumption by a total of around 5%. This is the result of the integrated energy management system that we introduced under our Climate Strategy.

Indirect energy consumption by source

Indirect energy consumption by source

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Greenhouse gas emissions

As is evident from the slight drop in sales of 4% and the 7% drop in orders received, MAN’s production in the year under review decreased compared to the previous year. This is reflected in our resource consumption, but not in our direct and indirect CO2 emissions.

In 2012 our direct CO2 emissions increased by 5%. The increase is due to the rise in the number of sites covered, from 28 to 30. The newly included Pinetown factory (South Africa) accounts for 4,000 tons of the CO2 emissions. CO2 emissions at the Changzhou site (China) rose by 1,200 tons as a result of production increases and new machines with strict temperature requirements.

Although we succeeded in reducing our indirect consumption of electricity and district heating by around 5% in 2012, our indirect emission calculations show a rise of nearly 3%. This is due to the increase in the International Energy Agency’s emission factors for electricity. Accordingly, emissions per €1 million revenue rose from 28 to 30 tons.

Our Nuremberg and Munich sites with their heating plants are subject to the European emissions trading scheme. The Munich heating plant runs on natural gas and heating oil. The heating plant in Nuremberg is operated by a service provider. Of the 24,004 annual allowances allocated to the Munich site for the second trading period, 15,980 allowances had been used by the end of 2012. The test stands at the Augsburg and Oberhausen facilities will fall under the emissions trading scheme from the start of the third trading period, which begins in 2013.

Emissions due to transportation and logistics

At 70%, truck transportation accounts for the largest share of CO2 emissions in the logistics sector of MAN Truck & Bus. In the year under review, MAN Truck & Bus gave rise to 71,851 tons of CO2 in the course of component supplies and 84,255 tons of CO2 through deliveries of its products. To reduce CO2 emissions within our own transportation chain, we supply our regional freight forwarders via freight hubs. These consolidate shipments, optimize vehicle capacity utilization, and avoid empty runs. As a commercial vehicle manufacturer, we expect our service providers to use state-of-the-art trucks that conform to the latest emissions standards. In cooperation with a transportation and logistics company we are testing the use of extra-long trucks on the route between our logistics centers in Dachau and Salzgitter. This offers around 40% more load volume and therefore cuts fuel consumption and CO2 emissions (see here).

Direct emissions

Direct emissions

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Indirect emissions

Indirect emissions

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Emissions per €1 million revenue

Emissions per €1 million revenue

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Emissions due to air travel

Emissions due to air travel

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Our Group-wide travel policy, which took effect in 2011, lays down rules for our employees regarding business travel by air, rental car, and train: journeys should only be undertaken when unavoidable, and only after first considering alternatives such as video or telephone conferencing. Wherever economically feasible, the most environmentally friendly form of transportation should always be used. During the year under review, MAN employees’ air travel booked by the central travel office gave rise to 19,562 tons of CO2 emissions. 2011 saw a significant increase in air travel to international sites; in the reporting period the CO2 emissions from employees’ air travel returned to 2010 levels.

For our employees’ commute to and from work, we offer concessionary tickets or bus transfers, depending on the infrastructure situation.

Pollutant emissions

Our sulfur dioxide emissions fell by 83% in the year under review. This was largely due to substantial changes in emission factors for diesel and heating oil. Particulate emissions were down by about 16%.

Refrigerants containing chlorine that represent a hazard to the ozone layer and are still used in some old equipment at a small number of sites are finally being phased out. All chlorine-based refrigerants in our systems will be replaced by 2014, as required by legislation. Small quantities of chlorodifluoromethane (R22) are being used in closed-cycle systems to operate air-conditioning equipment. During normal operation this does not cause any emissions. However, secondary products within the production process may contain traces of other ozone-depleting substances. We avoid R22 when procuring new refrigerants.

We reduced consumption of organic solvents (volatile organic compounds, VOC) by 17% in the year under review. This was due to the reduction in solvent-based paints and to their recovery using a solvent distillation system at our Augsburg site. VOCs are used for surface cleaning, coating, and adhesion purposes.

Emissions of other substances (e.g. CH4, N2O, SF6, PFCs, HFCs), expressed in terms of CO2 equivalent, account for less than 1% of total CO2 equivalent emissions and are therefore not shown separately.

SO2 emissions

SO<sub>2</sub> emissions

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NOXemissions

NO<sub>X</sub>emissions

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CO emissions

CO emissions

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Particulate emissions

Particulate emissions

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Solvents

Solvents

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Noise

Noise pollution is a potential problem for neighboring communities mainly at sites where, for historical reasons, production buildings are situated in immediate proximity to residential areas, as is the case for example at the Munich, Nuremberg, and Steyr (Austria) sites. In the past these problems have been solved by organizational and structural measures, such as the erection of noise barriers. We immediately investigate any new complaints about noise, track down the source, and take steps to prevent any further spikes in noise levels.

Raw materials consumption

Economical use of raw materials and consumables is important for MAN not only for environmental, but also for economic reasons. The principal raw materials used in production are steel, copper, aluminum, and various plastics. Secure and economic supplies of these raw materials are essential to our success. Making savings here is therefore a Group-wide objective at MAN. Owing to rising commodity prices, our expenditure on materials showed only a slight drop from €9.3 billion to €9.1 billion in the year under review despite the fall in sales. MAN is aware that rising prices and supply shortages in the commodities market pose a potential risk.

To reduce copper consumption, we are increasingly replacing copper with fiber optic solutions in data cables and electrical wiring in our trucks. We are also increasingly substituting stainless steel for copper intercooler piping in marine engines. MAN Truck & Bus professionally reconditions used parts and makes them available for vehicle repair purposes under the brand “MAN Genuine Parts ecoline” (see here).

Cost of materials by business area

€ million 2010 2011 2012
 
Commercial Vehicles 6,329 7,674 7,309
Power Engineering 1,853 1,722 1,951
Other/consolidation -87 -82 -152
Total 8,095 9,314 9,108

Cost of materials in relation to revenue

% of revenue 2010 2011 2012
 
Commercial Vehicles 60 61 63
Power Engineering 44 43 46
MAN Group 55 57 58

Waste and recycling

Products manufactured by MAN have a very long life expectancy which may often span several decades. It is therefore a long time before they need to be disposed of, or rather recycled, since they are essentially made of materials that are readily recycled. We have determined the precise shares in the course of our product life-cycle analysis (see here). In the interests of resource conservation, the MAN Group attaches great importance to the use of recycled metals in its foundries.

In 2012 we purchased and used some 14,000 tons of scrap from external recycling processes. In the same period, we also returned some 1,355 tons of swarf and scrap from our own production lines to the production cycle.

The total quantity of waste in the reporting period came to 185,948 tons, of which 95% was recycled. This means that the quantity of waste was down 4% compared to the previous year. At all plants, hazardous waste for disposal and hazardous waste for recycling was dealt with in accordance with waste legislation. The relevant certificates were obtained from the waste management contractors. No waste was exported.

Waste by type of treatment

Tons 2010 2011 2012
 
Total non-hazardous 45,457 119,817 117,344
of which: recycled 40,403 114,030 112,983
of which: disposed of 5,054 5,787 4,361
Total hazardous 12,188 16,628 15,055
of which: recycled 9,103 12,843 10,229
of which: disposed of 3,085 3,785 4,826
Metal scrap 46,425 57,335 53,549
Total 104,070 193,780 185,948

Recycled waste

Tons 2010 2011 2012
 
Total waste 104,070 193,780 185,948
of which: recycled 95,931 184,209 176,761
Recycling ratio (%) 92 95 95

Water and wastewater

The water used at our production sites mainly comprises process water for washing and cooling purposes and drinking water for sanitary purposes. Total water consumption increased by 21% to some 6.9 million cubic meters in the year under review. Whereas our consumption of drinking water remained more or less unchanged from the year before, consumption of well water rose by 25%. The main reason for this was the new, additional hardening plant at the Munich site. Water obtained from surface waters and used exclusively for cooling purposes is returned unchanged. In the year under review we extracted about the same amount of water as in 2011. The volume of wastewater remained around the previous year’s level, with a decrease of about 2%. A large number of sites use groundwater for cooling purposes, and this is drained away again after use. Other sites use surface water from nearby streams. Some sites also use cooling water in closed-loop systems. The Ankara (Turkey), Munich, Nuremberg, Starachowice (Poland), and Steyr (Austria) sites operate their own treatment plants for contaminated wastewater from painting processes.

Water consumption

Water consumption

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Surface water extraction

Surface water extraction

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Wastewater

Wastewater

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Nature conservation and biodiversity

The production sites owned by MAN cover a total area of around 6.1 square kilometers. No operational areas at these sites are located in protected natural areas, water catchment areas, or areas of high biodiversity. In 2010, because of the great importance we attach to species conservation and biodiversity, the MAN Truck & Bus Munich site submitted to a biodiversity check devised by the European Business and Biodiversity Campaign (EBBC). This drew attention, for example, to the small distance of 100 meters separating our Munich site from the Allacher Forst woodland area, which is covered by the European Union’s Habitats Directive. It was considered unlikely that the production activities at our site would have any impact on the area. We were however recommended to take the precaution of calculating the potential influences. This suggestion was included in the Environment Program as a measure with a 2014 deadline.

Environmental protection investment and expenditures

In the year under review we invested €11 million in environmental protection and measures to implement our Climate Strategy. This was 43% more than the year before. In this way we ensure that our production facilities conform to the highest standards of environmental technology and resource efficiency.

Environmental incidents

During the period under review, 2,000 liters of oil escaped from a balancing unit at MAN Diesel & Turbo. Also, due to an operating error, one cubic meter of highly diluted coolant was lost from a storage tank.

At no time was there any risk of environmental consequences from the incidents, since appropriate emergency response plans are in place at all sites, and the major sites have wellequipped works fire services to coordinate and ensure the appropriate response to incidents of these and other magnitudes. In 2012 we issued instructions for MAN Truck & Bus on escalating environmental incidents. They are intended to regulate lines of communication during safety or environmental incidents and call for a causal analysis as well as communication of lessons learned to prevent similar incidents from occurring.

Product responsibility

For MAN the central challenge of product development is to reduce fuel consumption and improve efficiency — which goes hand in hand with cutting CO2 emissions. In one of the core initiatives for implementing MAN’s Climate Strategy, we determine the CO2 emissions throughout the entire product life cycle with the aim of identifying savings potential (see here). It has emerged that over 90% of fuel consumption and CO2 emissions arise during the use phase. Our answer in the Commercial Vehicles business area consists of alternative drive concepts, alternative fuels, and aerodynamic optimization.

The MAN TGX EfficientLine trucks produced by MAN Bus & Truck optimize both air resistance and payload, thereby saving up to three liters of diesel per 100 kilometers compared with conventional trucks. In the year under review, MAN Truck & Bus sold 74,680 trucks, of which about 3% were in the EfficientLine series. MAN Truck & Bus offers series-production buses with either hybrid or CNG (compressed natural gas) drive systems. The MAN Lion’s City Hybrid uses up to 30% less fuel than an urban bus with conventional diesel power and is already operating in several European cities. Nearly CO2-neutral operation of CNG buses is possible with biogas, which permits clean and trouble-free combustion in standard natural gas engines. Ten percent of the 5,286 buses sold were powered by CNG. The share of urban buses sold was 37%. Two percent of the urban buses sold are hybrid vehicles. The new trucks of the TG family with Euro VI technology make systematic use of an efficient concept of demand-controlled exhaust gas recirculation, diesel particulate filters, and exhaust gas treatment using the SCRT system (selective catalytic reduction technology). This makes the vehicles practically pollutant-free.

To ensure that our customers receive optimal information about our EfficientLine trucks and buses and our gas and hybrid drives, in the future we will work to raise our Sales employees’ awareness of CR, climate, and environmental issues.

By optimizing the operation of our products, our customers help to conserve resources. We therefore inform them about factors such as rolling resistance and aerodynamic drag which influence vehicle emissions and fuel consumption.

MAN Support offers fleet operators a mobile-positioning, vehicle, and fleet-management system: MAN TeleMatics. Since 2012 this system has also been available as an app for mobile devices. It provides the user with a comprehensive, round-the-clock overview of fleet activities and status reports. Moreover, MAN TeleMatics enables our customers to save up to 20% fuel.

For its pioneering work on the development of the first Brazilian hybrid truck, MAN Latin America received the AEA Environment Award of the association of Brazilian automobile engineers. The VW Constellation 17.280 6x2 Híbrido also won two Renewable Energy Infrastructure awards. Developed in Brazil, the vehicle is powered by hydraulic diesel hybrid technology and is ideally suited to conditions in emerging economies.

Greater efficiency combined with lower emissions is also a major technology driver in the products of the Power Engineering business area. The large 35/44DF diesel engine presented at the maritime trade fair SMM in Hamburg in 2012 is a dual-fuel engine that can run on both liquid and gaseous fuels. When running on natural gas, the four-stroke 35/44DF engine emits much lower levels of CO2 and nitrogen oxide. As a result, it already meets the threshold levels of the International Maritime Organization’s Tier III emission standard which takes effect in 2016. Under the name of ME-GI, MAN Diesel & Turbo offers dual-fuel technology for two-stroke engines as well. Another focus is on the use of natural gas as a low-emission alternative. New products introduced in this field included a new gas engine for power plant applications (35/44G) and a new gas turbine (GT6) in the 6-MW class.

Efficiency improvements and emissions reduction also play an important role in MAN PrimeServ, the service brand of MAN Diesel & Turbo. Its range of retrofits and upgrades was steadily developed in 2012. Upgrades of this kind can be used to improve efficiency, reduce resource consumption, and cut emissions in diesel engines, compressors, and turbines.

A broad overview of our products and innovations can be found in the brochure “Megatrends Need Innovation,” which accompanies this CR Report.