2015 Sustainability ReportMTU Aero Engines AG

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Table of contents

4 Environmental protection 524.1 Energy management 564.2 Emissions 584.3 Water usage 604.4 Material efficiency 62

Foreword by the Chief Executive Officer 5About this report 6MTU Aero Engines AG 8

1 Strategy 111.1 Sustainability strategy 121.2 CR management 151.3 Ethics and integrity 161.4 Human rights 181.5 Stakeholder dialog 20

5 Employees 645.1 Occupational health and safety 695.2 Attractiveness as an employer 725.3 Employee development 745.4 Diversity and equal opportunities 77

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2 Economics 242.1 Sustainable added value 262.2 Compliance 292.3 Supply chain 32

Masthead

PublisherMTU Aero Engines AGEckhard ZangerSenior Vice President Corporate Communications and Public Affairs

Project management and contact point for questions regarding contentUte SchwingSenior Manager Corporate Online Services, Internal Communications and CRcorporateresponsibility@mtu.dewww.mtu.de

LufthansaJetblue, MTU Aero EnginesMTU Aero EnginesBombardier, Jetblue, Airbus, Boeing,MTU Aero Engines, MitsubishiAirbusMTU Aero Engines Boeing, MTU Aero EnginesMTU Aero EnginesMitsubishi, Bombardier, Airbus, MTU Aero Engines MTU Aero Engines, Bauhaus Luftfahrt MTU Aero EnginesFotolia, MTU Aero EnginesMTU Aero Engines

Photo creditsCoverPages 4-5Pages 6-7Pages 8-9

Pages 10-11Pages 12-13Pages 14-15Pages 15-37Pages 40-41Pages 44-45Pages 46-71Pages 72-73Pages 74-84

Geared Turbofan is a registered trademark ofPratt & Whitney.

Goals and goal attainment for 2015 86GRI-Index 93

3 Product Responsibility 363.1 Innovation management 383.2 Fuel efficiency 393.3 MTUs climate strategy 413.4 Aircraft noise 463.5 Product quality and safety 48

6 Society 806.1 Corporate citizenship 826.2 Donations/Sponsorship 84

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Foreword by the Chief Executive Officer

Reiner WinklerCEO of MTU Aero Engines AG

Balancing our experience and expertise of decadeswith innovations that move us into the future, wecreate persevering value for our stakeholders byconducting our business in a sustainable and responsible way. The financial year 2015 was anenormously successful one for MTU Aero Engines,in which we once again improved our performanceand set new records. We prioritize long-term valuecreation over short-term profits.

Now in the fifth year of our membership in the UNGlobal Compact, we are unwaveringly committed toobserving and upholding its principles: protectinghuman rights, promoting fair working conditions, andcombating corruption. As an attractive employer forour some 9,000 employees worldwide, we create a fair and safe working environment that is readyfor the needs of tomorrow. Yet we also realize that,even as a top employer, MTU cannot afford to reston its laurels. This is why we continuously hone ourHR activities and, for example, address our employ-ees demand for more flexibility with the mobileworking project.

As we look ahead, our plan is to continue developingourselves further. With this in mind, we have pinnedsustainability as a corporate objective for the cur-rent financial year 2016, in order to lend it stillmore weight. Our Munich location is party to thecitys climate protection agreement in order toreduce the industrys regional CO2 footprint evenfurther. We will assume responsibility, now and inthe future, for infusing sustainability into all aspectsof our business and working life.

We hope you will continue to support us on thispath.

Yours sincerely,

Our focus is on product responsibility. The newgeneration of geared turbofan engines is a shiningexample of how we combine commercial success

with sustainable goals. Since January2016, the turbofan-equipped A320neohas been in service with Lufthansa andother international airlines, proving it-self to be considerably cleaner, quieterand more fuel-efficient. This is but oneinstance where we have made consid-erable progress on key sustainabilitytopics and moved forward with ourClean Air Engine agenda: by 2050, weaim to reduce CO2 emissions by up to 40 percent and decrease noise by as much 65 percent. In times ofdecarbonizationdefined in the goalsagreed upon at the 2015 Paris climateconferenceas well as resource scar-city and globalization, we are stronglycommitted to sustainable aviation.

But sustainability goes beyond that. We haveintegrated mandatory social and environmentalstandards along the value chain, in manufacturingfacilities at our own locations, and in collabora-tion with our suppliers around the world. Wehave launched a range of measures to curb ourdemand for energy and raw materials as well as to reduce our emissions. We aim at manu-facturing processes that reduce resources con-sumption and pollution. In November 2015, theCDP (Carbon Disclosure Project) named MTU asGermanys Best Improverrecognition of the factthat we have increased transparency regardingour environmental impact.

Dear readers,

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About this report

Sustainability Report 2015for MTU Aero Engines AG

Reporting in accordancewith GRI

MTU Aero Engines AG has compiled this sustain-ability report in order to inform its stakeholdersabout corporate responsibility (CR) within thecompany. The report provides information aboutthe companys CR strategy, goals, and achieve-ments. It describes the priorities for the variousCR spheres of activity in 2015 and the progressmade in them, and continues where the previousSustainability Report for 2013/2014 left off.German and English versions of the report areavailable on our website as downloadable PDFs.

MTU Sustainability Report (German) MTU Sustainability Report (English)

Questions about the report can be addressed to corporateresponsibility@mtu.de

UN Global CompactCommunication on ProgressThis sustainability report incorporates the Com-munication on Progress according to the tenprinciples of the UN Global Compact, a measuredesigned to facilitate stakeholder access to CR-relevant information. In the GRI Index at the endof the report, you will find cross-references tothe UN Global Compacts ten principles.

Scope of validityThe reporting period spans the 2015 calendaryear (January 1 to December 31), which alsocorresponds to the 2015 financial year for MTUAero Engines AG. In order to better organize howinformation is presented and to provide explana-tory context for readers, activities from outsidethe reporting period are also cited in some cases.The report covers those of MTUs European lo-cations that are treated as fully consolidated inthe companys financial reporting. This includesMTU Aero Engines, the companys headquartersin Munich, MTU Maintenance Hannover, MTUMaintenance Berlin-Brandenburg in Ludwigsfeldenear Berlin, and MTU Aero Engines Polska inRzeszw, covering the majority of the MTU Group.(In terms of total workforce, the report appliesto 94 percent of employees.)

The joint venture MTU Maintenance Lease Services B.V. in Amsterdam, the Netherlands, is not included in the report, because it has nomeasurable effect on MTUs sustainability per-

The 2015 Sustainability Report was drawn up incompliance with the Global Reporting Initiativeguidelines and meets the new GRI G4 standard.In our estimation, the report satisfies the require-ments for a Core report. Accordingly, we reporton all required standard disclosures as well ason management approaches for key aspects andon selected indicators for each aspect (to facili-tate comparison, tables and diagrams are cross-referenced to the corresponding indicator). Forease of reference, the GRI Index at the end of thereport links the contents with the GRI require-ments. A materiality matrix (in the Strategy chap-ter) presents the topics relevant to sustainabilityfor MTU and how they are weighted from an

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internal and external perspective. It serves asthe basis for selecting the key aspects and per-formance indicators for this report.

http://www.mtu.de/de/unternehmen/corporate-responsibility/berichte/http://www.mtu.de/company/corporate-responsibility/reports/mailto:corporateresponsibility@mtu.de

Key performance indicators(KPIs)All data and information was collected by theresponsible departments for the reporting periodusing representative methods. EnvironmentalKPIs were collected via the environmental man-agement systems at the individual locations andthen consolidated in the CR database accordingto agreed criteria. Using an electronic HR man-agement system, the HR KPIs were collectedand evaluated centrally at the headquarters inMunich for Germany and at the Rzeszw locationfor Poland. Once the data was evaluated, it wassent to the CR database. All other data was re-quested from the CR center coordinators in therelevant departments and compiled centrally inthe CR database. Financial KPIs were collectedand published in accordance with the Internatio-nal Financial Reporting Standards (IFRS).

Further informationYou can find supplementary information, moredetailed analyses and older sustainability publi-cations online:

Corporate responsibility at MTU Compliance at MTU

In addition, we regularly report on importantsustainability topics in central MTU publicationsand communication channels.

Forward-looking statementsThis report contains forward-looking state-ments. These statements reflect the currentunderstanding, expectations and assumptions ofMTU Aero Engines and are based on the infor-mation available to management at the presenttime. Forward-looking statements provide noguarantee that certain results and developmentswill actually occur in the future, and they areassociated with risk and uncertainty.Consequently, the actual future results of MTUAero Engines may deviate substantially from theexpectations and assumptions expressed herefor a variety