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Responsibility for Our Climate MAN’s Climate Strategy Engineering the Future – since 1758. MAN SE CO2 Reduction and Efficiency: Global Targets Russia 15–25% USA 17% reduction in emissions by 2020 (baseline: 2005) Brazil 36–39% reduction Europe 20% reduction in greenhouse gases, 20% more energy efficiency, and 20% renewable energies by 2020 (baseline: 1990) reduction in greenhouse gases by 2020 (baseline: 1990) India 20 –25% China 40– 45% reduction in CO2 per unit of GDP by 2020 (baseline: 2005) reduction in carbon intensity by 2020 (baseline: 2005) in CO2 emissions below 2020 forecast (baseline: 2005) Sources: USA — American Clean Energy and Security Act of 2009; Brazil — Ministry of the Environment (2011); Europe — Council of the European Union (2008); Russia — Ministry of Natural Resources and Ecology of the Russian Federation (2010); India — Government of India, Ministry of Environment and Forests (2009); China — Chinese Government (2010) 1 Dear Stakeholders, Around the globe, we offer products and services in the transportation and energy sectors, both of which are increasingly significant factors in climate change. For this reason, we have a responsibility to contribute to the reduction of the global carbon footprint. An undertaking on this scale calls for a commitment by the entire Company supported by all our employees. We have set ourselves an ambitious target: a 25% reduction in CO2 emissions from our own operations by 2020. To achieve this, and to reduce the carbon footprint of our products, we have launched a number of climate initiatives. We see climate protection and economic efficiency as two sides of the same coin — because cutting fuel consumption also means lower CO2 emissions. Yours, Dr. Georg Pachta-Reyhofen Dr. Georg Pachta-Reyhofen, Chief Executive Officer of MAN SE 2 MAN’s Climate Strategy MAN’s Climate Strategy: Mandatory Targets Climate change is one of the most important global challenges faced by governments, businesses, and society. And anthropogenic carbon dioxide emissions are among the primary causes of climate change. Today the transportation sector is responsible for approximately 15% of global CO2 emissions, a figure that is expected to reach 22% by 2020. By now, many nations have set mandatory climate protection targets. At the same time, many European Union member states are applying increasingly stringent Euro emissions standards for trucks, while the United Nations has issued Tier III standards for marine engines. Our CO2efficient product and service portfolio facilitates compliance with climate protection targets and regulatory requirements. Resource efficiency has long since become a competitive factor. MAN is aiming to make a significant contribution to cutting CO2 emissions while using the associated business opportunities to its advantage. With this in mind, we commissioned an internal team of experts to draw up a climate strategy. The resultant strategy was approved by the Management Board of MAN SE in September 2011 and presented to MAN Group managers at the MAN Summit. It now forms part of the MAN CR Strategy and supports the attainment of our corporate goals. 3 An Integrated Strategic Approach MAN’s Vision The best people, customer orientation, as well as superior technology and services will make us number one in commercial vehicles and power engineering. Corporate Strategy CR Strategy Our corporate strategy aims to create sustainable value Focus on transportation and energy Profitable international growth Customer orientation After-sales activities Technology leadership CR Field of Action — Environment Climate Strategy Resource-efficient products and services Resource efficiency in production and administration 4 MAN’s Climate Strategy Cornerstones of Our Climate Strategy As a globally active corporation in the fields of transportation and energy, MAN bears responsibility for its production processes and for its products. Production: MAN has 31 production sites in 13 countries. These facilities consume raw materials and electricity and use resources to generate energy, which causes CO2 emissions. Products: MAN develops products and services for the transportation of passengers and goods, as well as for energy generation. These are high-growth sectors, which implies rising CO2 emissions. We can make an important contribution to climate protection, not only at our sites, but through our products and services as well. MAN takes this responsibility seriously. As a first step, we have set ourselves the goal of cutting CO2 emissions at MAN sites by 25% by 2020 — a target we intend to meet by implementing the five core initiatives developed by our Climate Expert Team and launched in 2011. 5 MAN’s Climate Strategy Acknowledge responsibility Dilemma and approach The transportation and energy sectors are contributing to climate change to an ever-greater extent. The interaction between our own product development, our suppliers, legislation, and our customers and their customers is complex. MAN’s Climate Strategy Climate change is among the greatest challenges to humanity. MAN is fully aware of and acknowledges its responsibility to contribute to reducing the global carbon footprint of the transportation and of the energy sector. MAN has set itself the target of reducing its own CO2 emissions by 25% by 2020 (baseline: 2008). Vision Commitment Our target: reduce our own CO2 emissions by 25% by 2020 (baseline: 2008). By 2020, our aim is to be recognized as one of the industry players to have dealt with the challenges of climate change the best. 6 MAN’s Climate Strategy Core Initiatives for Climate Strategy Implementation 1. 25% reduction in CO2 emissions at MAN sites by 2020 (baseline: 2008) We will reduce CO2 emissions at MAN sites by improving energy efficiency, using renewable energy sources (solar, wind, geothermal), generating energy using combined heat and power (CHP) plants, and through integrated energymanagement technology and organization. 2. Consistently Efficient product portfolio We position ourselves in the commercial vehicles and power engineering sectors with sustainable products and services. 3. Customer involvement and dialog We involve our customers and talk to them about ways to reduce the global carbon footprint. After all, many of our customers have already set themselves ambitious targets for cutting CO2 emissions. 4. Potential for reducing CO2 emissions along the product life cycle To identify potential for reductions, we measure CO2 emissions along the entire product life cycle. 5. Climate strategy management We manage the implementation of our climate strategy and have defined KPIs that are regularly measured and published. 7 Our Sites Resource conservation is the most significant challenge faced by MAN — a point confirmed by our stakeholder surveys of the last two years. Our first core initiative was developed in response to this challenge. Our target is a 25% reduction in CO2 emissions at our sites by 2020, which represents an annual reduction of around 125,000 tons of carbon dioxide compared with 2008. This production-related climate goal will be met by making our production sites more energy efficient and improving the energy-management technology and organization in our buildings and production halls. In 2012 we will analyze the feasibility of using our own MAN combined heat and power (CHP) plants to generate electricity at the sites with the highest energy consumption levels. In addition, we will step up our efforts to use renewable energies such as geothermal, biomass, wind, and solar energy at all our sites. This will allow us to cut our CO2 emissions and keep our energy costs from rising, giving us a competitive edge. 8 MAN’s Climate Strategy Our Products In order to further reduce the carbon footprint of our products, we analyze the product life cycle to determine at what stage they produce the most CO2 emissions. We have already analyzed 40% of all MAN products. We found that up to 90% and more of emissions arise during the service life of the products. This means that the most effective way for us to cut CO2 emissions is by using energy-efficient technologies in our products. We are working on this, firstly by further developing our “Consistently Effficient” product portfolio and secondly, by talking to our customers to find shared solutions to the global challenges of climate change. By optimizing the way in which they use our products, our customers can cut fuel consumption and therefore CO2 emissions even further, a process we support by offering training courses for professional drivers and operators of large-bore diesel engines. Lowering the CO2 emissions of our products by 20% or more during the service life of our products is one of MAN’s largest undertakings, one in which we must take due account not only of the regulatory environment but also of the pressures of international competition. However, we believe this is a realistic goal and we will be doing our utmost to meet this challenge — not least by making our climate strategy an integral part of our managers’ annual performance reviews and defining a specific reduction target for our products in 2013. Credits Published by Photo credits MAN SE Front cover: Hauke Dressler Corporate Responsibility p. 1: Andreas Teichmann; p. 2, 4, 7, 8: MAN Ungererstr. 69 p. 5: Sandor Jackel, Günter Lenz, MAN, 80805 Munich, Germany Steven Pepple www.man.eu E-mail: [email protected] Printed by Medienhaus Biering GmbH Contact Yvonne Benkert Copyright Head of Corporate Responsibility © 2012 MAN SE Telefon: +49. 89. 36098-226 E-mail: [email protected] Paper Hello fat matt Concept, texts, and layout akzente kommunikation und beratung gmbh MAN SE Ungererstr. 69 80805 Munich, Germany Telefon: +49. 89. 36098-0 Fax: +49. 89. 36098-250 www.man.eu Corporate Responsibility at MAN online www.man.eu/MAN/en/CR