Glossary

Assurance report: The assurance report is prepared by a neutral third party, such as a firm of auditors. It certifies that no issues were discovered that led the auditors to believe that the selected data for the reporting year which was presented in the CR report did not materially comply with the criteria of the audit. MAN prepares its CR report in accordance with Volume 3 of the GRI Sustainability Reporting Guidelines. The 2011 CR Report attained the highest application level, A+. We submitted our entire 2011 CR Report for comprehensive and independent verification by a firm of auditors.

Biodiesel: Environmentally friendly fuel manufactured from vegetable oil and methanol. Biodiesel manufacture involves transforming vegetable oils into fuels. Generally speaking, nearly all vegetable oils are suited for fuel, including rapeseed or soy bean oil, or even animal fats and used cooking oils. In Europe, most biodiesel is produced from rapeseed methyl ester. In addition to bioethanol, biodiesel is currently the only →Biofuel that is industrially produced. Depending on the type of machine to be fueled, it can be used in its pure form. It is generally possible to mix up to five percent biodiesel with conventional fuels; this is taken for granted for conventional aggregate drives. No technical engine adaptations are necessary up to this mixing ratio.

Bioethanol: Today, →Ethanol is almost exclusively produced from corn or grain. If ethanol is made from vegetable waste, wood, straw or whole plants, it is also designated as cellulose ethanol and thus as second-generation →Biofuel. Chemically seen, there is no difference between bioethanol and ethanol that is synthetically manufactured from fossil carbon sources. The starch contained in the biomass that serves as the raw material is enzymatically broken down into glucose, which is then fermented to ethanol with yeast. Ethanol can be used as fuel for internal combustion engines, fuel cells and turbines, either in vehicles or for stationary power generation. In such cases, pure ethanol (so-called E100) and mixtures of ethanol and gasoline or other alcohols (e.g. →Methanol) are used.

Biofuels: Fuels produced from →Biomass. These are characterized by their particular environmental compatibility. Today’s most important biofuels are →Biodiesel, →Bioethanol, →BTL fuel and →Biomethane. An important distinction between these fuels is the respective source material. Experts differentiate between first and second-generation biofuels. For production-related reasons, only plant tubers or seeds can be used in the manufacture of biodiesel (a first-generation fuel). Not only does this make biodiesel relatively expensive, it makes it a competitor for the food supply. To manufacture second-generation biofuels (BTL fuels), any type of biomass can be used. The procedure is highly costly and still in the trial phase. The only biofuels already being produced on an industrial scale today are biodiesel and bioethanol.

Biomass: There are two sources of biomass: waste material from agriculture and forestry, and fast-growing, undemanding plants like ornamental grasses. Other sources of biomass include timber waste, waste paper, bio-compost, straw, foliage, hay, corn cobs etc.

Biomethane: Gas that develops from the anaerobic fermentation of organic material. Raw material for biomethane (or biogas) production includes fermentable waste material containing biomass such as sewage sludge, organic waste or unused vegetable matter or vegetable parts. The methane proportion in biogas is especially valuable: the higher the proportion, the more energy the gas contains. Further components are steam and carbon dioxide. The hydrogen sulfide and ammonia content in biogas, however, are particularly critical. Both of these chemically aggressive substances must be removed because they would damage gasoline engines during operation. In Germany, biogas is primarily used as fuel for block heat and power plants. It is currently being considered, however, whether biogas could be supplied via natural gas pipelines.

BTL (Biomass-to-Liquid): Synthetically produced →Biofuel which can be manufactured from almost all types of →Biomass. The biomass is gasified; chemical synthesis of the ensuing gas results in liquid fuel. The complicated procedure for manufacturing BTL fuels is still in its trial phase.

Carbon Disclosure Project (CDP): The Carbon Disclosure Project (CDP) is an independent NGO that works to achieve increased transparency regarding ecologically harmful CO₂ emissions. Each year the CDP compiles data on CO2 emissions, climate risks and reduction targets and strategies for the use of investors. Companies provide the data on a voluntary basis. With the help of this information, the Carbon Disclosure Project has succeeded in establishing the world's largest freely available register of companies' CO₂ emissions. In 2010 MAN was listed in the Carbon Disclosure Leadership Index (CDLI), which rates the transparency of data relevant to climate protection.

Climate strategy: Many companies have an ever-increasing impact on climate change. Some companies, including MAN, consider themselves under an obligation to help reduce the global carbon footprint and draw up a climate strategy. The aim of such strategies is to reduce CO₂ emissions, often both those from the company's own production operations and those caused by its products. In its climate strategy published in 2011, MAN has set itself an ambitious target: to achieve a 25% reduction in CO₂ emissions from its own operations by 2020.

CO₂ (carbon dioxide): A chemical compound of carbon and oxygen that belongs to the group of carbon oxides. Carbon dioxide is a colorless and odorless gas. It is a natural component of air and develops as a by-product of cellular respiration in living organisms upon sufficient supply of oxygen, just as during complete combustion of carbonaceous substances (coal, oil etc.). In organisms, CO₂ is released via the breathing process. In contrast, plants, some bacteria and archaea are able to transform CO₂ into biomass through carbon fixation. Plants, for example, produce glucose from inorganic CO₂ during photosynthesis.

Compliance: Measures undertaken to ensure that rules are respected. This relates not only to legislation but also to corporate guidelines, international norms and standards and voluntary codes of conduct. MAN introduced a compliance system in 2009 under the aegis of a Chief Compliance Officer. Compliance is one component of → Corporate Governance.

Corporate Governance: The legal and de facto regulatory framework for the management and supervision of companies. The rules may be imposed by a variety of players including legislators, employees, management or supervi-sory boards, and are laid down accordingly in the statute books, corporate principles, codes of conduct or other regulations. As a result, corporate governance rules may be binding or non-binding. At MAN an Industrial Governance System determines how tasks and responsibilities are divided up between the MAN Corporate Center and the divisions.

Corporate Responsibility (CR): Responsible and transparent company man-agement that takes equal account of economic, ecological and social interests. CR thus covers the fields of environmental protection, employee interests and the social engagement of companies and involves suppliers in the responsibility chain. CR also covers aspects of corporate management and supervision.

Corporate Responsibility (CR) Report: A presentation of the performance and activities of a company in relation to the relevant aspects of sustainable development. A detailed CR report ranks alongside the annual report as a key component of a company's information policy. Since 2010 MAN has aligned its CR reporting with the guidelines of the Global Reporting Initiative. The current CR Report of MAN SE can be found under Downloads on this page.

CR Strategy: The strategic goals that derive from the challenges a company faces and from → megatrends. The CR strategy is defined based on analysis of the relevance of the various issues for the individual business processes, deriving basic goals for each process. The strategic focus depends on the desired positioning. MAN SE undertook a complete overhaul of its CR strategy in 2009. The revised strategy features an integral approach that embeds CR in every element of → corporate strategy.

CR Management: The overarching strategic coordination of sustainability activities in line with the crossfunctional relevance of → Corporate Responsi-bility. The aim is to minimize risk, safeguard the trust of the employees, cus-tomers, the authorities and society at large in the company and open up new opportunities. This calls for a coordinated and targeted approach on the part of various corporate functions – from Corporate Development to HR, Environ-mental Protection, Procurement and Compliance, each with its own tasks and procedures. In the interests of successful CR Management, MAN has com-piled an 8-strong CR Excellence Team that brings together experts from the subgroups and employees from central functions. Consequently, the → CR strategy of MAN takes account not only of the international structure of the Group but also of the need to integrate CR into the corporate culture, business strategy and operating processes.

Diesel hybrid: →Hybrid drive

Direct emissions: Direct emissions are caused directly by the company, which therefore has direct control over them. Direct emissions result from the combustion of fossil fuels and the volatilization of other greenhouse gases. This means they can be forecasted and are quantifiable.

Dow Jones Sustainability Indexes (DJSI): A family of share indexes that take account not only of economic criteria, but of ecological and social criteria as well. The DJSI indexes are divided up into global, European and North American indexes. Inclusion in one of these indexes is determined to equal degrees by general and industry-specific criteria. Special indexes are also formed by the exclusion of specific industries (e.g. gambling, alcohol, tobacco or firearms).

D20 Common Rail: Innovative engine series developed by MAN Truck & Bus. D20 Common Rail engines feature exceptionally low fuel consumption and low emissions. This makes them very environmentally friendly. These characteristics were implemented by the use of Common Rail technology, among other things.

D26 Common Rail: Engines made by MAN Truck & Bus that stand for exceptional environmental compatibility. This is achieved on the one hand by low fuel consumption combined with low emissions, on the other through the use of modern emission technologies like the →EGR system or →SCR technology.

EEV (Enhanced Environmentally Friendly Vehicle): The currently most stringent emission standard for buses and trucks. EEV requirements exceed the Euro-5-Norm that will take effect in September 2009 for all new types of trucks and buses.

EGR: System for cooled vehicle Exhaust Gas Recirculation (EGR). In this procedure, fresh air is added to part of the exhaust. The mixture of fresh air and exhaust is then recirculated in the combustion chamber, resulting in a lower gross combustion heat in relation to the overall volume. This reduces the proportion of nitrogen oxide in the exhaust that has developed during combustion. Although this increases the particulate matter in the emissions, the downstream →MAN PM-KAT corrects this. In combination with the MAN PM-KAT® filter, this system is offered exclusively by MAN for use in MAN vehicles and enables substantial reduction of pollutant emissions. The overall solution fulfills the →Euro-4-Norm without additives; MAN will also offer a → Euro-5-compliant version as well.

EMAS: Eco-Management and Audit Scheme – the public sector European environmental management system that enables government agencies and public institutions to systematically, responsibly and effectively use their full potential for action. Via the corresponding monitoring, regulation and control mechanisms, EMAS provides the framework for integrating environmental aspects into daily operations and continually improving company environmental protection. The EMAS considers not only internal workflows, but also the effects of administrative actions that are indirectly relevant for environmental management.

Ethanol: Alcohol that develops from the oxidation of ethane. Ethanol is frequently derived from natural products (→Bioethanol), but can also be synthetically produced. Ethanol is suitable, among other things, as a component of conventional fuels, and can thus improve their “green” characteristics.

Euro V / Euro VI: European Union (EU) vehicle emissions standards. These standards define acceptable limits for harmful substances found in vehicle emissions, such as carbon monoxide, oxides of nitrogen, hydrocarbons and particulates (diesel). The current Euro 5 standard for commercial vehicles will be succeeded by the stricter Euro 6 standard on December 31, 2013.

Fuel cell: A unit for generating electrical energy. Inside the fuel cell, a chemical reaction between →Hydrogen and oxygen takes place. The structure of the cell resembles a sandwich: an electrolyte, e.g. a proton exchange membrane (PEM) is layered between gas-permeable electrodes of graphite paper. Hydrogen and oxygen are separated from each other by these electrolytes and exchange electrons. The electron flow transforms the cell into an electricity generator. One individual cell generates only a very low voltage, which is why several cells are connected in so-called stacks (fuel cell stacks). The energy thus generated powers an electric engine connected to the fuel cells. The advantages of this type of power generation are high efficiency and environmental friendliness. Circa 40 to 60 percent of the energy in the hydrogen is transformed into power. The only waste product produced is pure water. On the other hand, this technology does have disadvantages: for one thing, hydrogen is difficult to produce. If it is acquired from fossil energy sources like oil or gas, there is no environmental advantage whatsoever. Hydrogen production using energy from solar energy sources would be ideal. The second disadvantage is that hydrogen transport and storage is complicated. It must be stored under high pressure, deep-frozen or in metal hybrid containers.

Global Reporting Initiative: The Global Reporting Initiative (GRI) is an independent global initiative that develops internationally recognized standards for measuring and reporting on sustainability. It aims to make globalization more environmentally and socially compatible by providing a framework for companies' voluntary corporate responsibility reporting. The GRI framework includes standard references for all companies as well as industry-specific supplements. A corporate responsibility report's GRI Content Index provides an overview of which current GRI standard indicators are covered on which page of the report.

GTL (Gas-to-Liquid): Synthetically manufactured liquid fuel. GTL (also called synfuel) is made from natural gas and can be mixed with normal Diesel or gasoline to improve the environmental friendliness of those fuels. Synfuel contains no sulfur. This characteristic makes GTL compliant with future EU regulations: as of 2009, Diesel and gasoline with a sulfur content of over 10 mg per kg fuel will be prohibited. GTL production facilities can now be found around the world. The largest of these is in Qatar, which has the largest natural gas deposits in the world.

Hybrid drive: Combination of two or more independent drive units. The most frequently found hybrids are combinations of combustion engines and electric engines. In such cases, the electric engine functions as a generator: during braking and deceleration phases, a hybrid vehicle regains energy, which is stored in a battery. This saves substantial amounts of fuel, for example, in stop-and-go city traffic. Despite its low fuel consumption, hybrid drive vehicles still have their disadvantages: such systems are complex and expensive to build. Above all, their storage batteries – nickel metal hydride or recently, lithium ion – take up a great amount of space and increase the overall vehicle weight. In addition, these rechargeable batteries have a much shorter service-life than the engines. Manufacture of a hybrid drive also consumes much more energy than production of conventional drive units.

Hydrogen: Propellant used for fuel cell vehicles. It is frequently bound in water or hydrocarbons. Theoretically, hydrogen can be used in combustion engines or fuel cells, but only its use in fuel cells is emission-free. The only after-product from this combustion process is pure water. In addition, the use of hydrogen in fuel cells is much more efficient; in comparison to the efficiency of a combustion engine, that of a fuel cell is circa twice as high. Hydrogen can only be stored at -253°C in liquid form or under pressure of 350 bar in gaseous form in tanks – which is one disadvantage of its use. In addition, hydrogen production requires a great deal of energy, which negatively affects the environmental balance sheet. Only production that uses renewable energies is for the most part CO₂-neutral. This means that the use of hydrogen makes ecological sense only if no fossil fuels are employed in its creation.

Indirect emissions: Indirect emissions are emissions that occur outside the company, but which are generated upstream or downstream as a consequence of its processes. They also result in negative environmental impacts.

ISO 14001: The worldwide accepted standard for environmental management from 1996 was revised after a number of years and then reissued by the International Organization for Standardization (ISO) on November 15, 2004 as ISO 14001:2004. It was simultaneously accepted as the European standard. With its publication on February 1, 2005, it received the status of a German DIN norm. The German title is DIN EN ISO 14001:2005 (“Umweltmanagementsysteme – Anforderungen mit Anleitung zur Anwendung” [Environmental management systems – requirements with application instructions]).

Materiality: Materiality describes the perceived significance of different sustainability issues for the company and its stakeholders. A materiality analysis is carried out to identify relevant areas of intersection between the different perceptions. A two-dimensional materiality matrix is one method of providing a clear overview of the results.

Megatrends: While trends describe significant changes and shifts in various areas of society, megatrends happen when trends converge and they are ac-companied by far-reaching social and technological change. They extend to all parts of the world and shape the markets of the future. Megatrends impact on all players – governments, individuals and their behavior as consumers, as well as companies and their strategies.

Methanol: Primary, monovalent alcohol. The most frequently used raw material for methanol is natural gas. Methanol can be utilized in a number of variants as fuel. Circa 30 million tons of methanol were produced in 2005. One of the largest manufacturers is the Methanol Holdings Ltd. (Trinidad), with a production quota of 4 million tons per year (as of 2005).

Nitrogen oxide (NOx): Colorless and odorless gas. Nitrogen oxide reacts with oxygen to become NO₂ (nitrogen dioxide). Nitrogen oxides develop from nitrogen in the air during combustion processes; they are one factor responsible for the formation of ozone and play a major role in the formation of acid rain.

OHSAS 18001: The Occupational Health and Safety Assessment Series (OHSAS 18001) is a norm for the implementation of a standardized occupational health and safety management system. This allows a company's occupational health and safety measures to be aligned with defined standards and procedures. OHSAS 18001 is closely modeled on ISO 9001 and ISO 14001 and is used in more than 80 countries; in contrast to ISO standards, however, OHSAS 18001 is not globally recognized.

Particulate filter: Also called a Diesel particulate filter. Reduces particulate matter like exhaust particles or unburned hydrocarbons in Diesel engine exhaust. MAN trucks use the MAN PM-KAT® developed by MAN engineers in combination with →EGR technology.

Resource efficiency: Resources are the materials and goods required for the manufacture of products and services. They include natural resources such as energy, water and raw materials. The fewer resources are required for the manufacture of a product, the more resource-efficient its production is.

SCR: Selective Catalytic Reduction. Exhaust technology that complies with stringent emission regulations like the Euro-5-Norm. This technology enables effective reduction of →Nitrogen oxide emissions. The AdBlue reducing agent is mixed with the exhaust jet in a ceramic (SCR) catalytic converter. This converts nitrogen oxide into steam and elementary nitrogen – a natural component of air. This enables nitrogen oxide to be reduced by over 80%.

Sustainability: Striking a long-term balance between economic, social and ecological aspects and interests. Sustainable development is a social and economic guiding principle first formulated by the Brundtland Commission in 1987. In the Brundtland Report, sustainable development is defined as "devel-opment that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Synthetic fuels: Fuels that are synthetically manufactured from various raw materials using a number of special procedures. They are chemically highly pure and thus burn with very low emissions. Such fuels can either be made of natural gas (→Gas-to-Liquid, GTL) or from residual and waste biomass, as well as from so-called energy crops (→Biomass-to-Liquid, BTL).

TA Luft regulations: Exist in context of the Federal Air Pollution Control Act. The Technical Instructions on Air Quality Control (TA Luft) were published on July 30, 2002 in the Official Ministry Gazette and went into force on October 1, 2002. The TA Luft 2002 concretizes the requirements that must be complied with to receive permits for industrial and commercial facilities from the relevant enforcement authorities. The TA Luft 2002 has immission and emission sections. The immission section contains regulations on protecting neighbors against unjustifiably high pollutant levels, e.g. from industrial facilities. In this regard, facility licensing must adhere to European law. The emission section contains requirements for protecting against harmful environmental effects and sets the corresponding emission thresholds for all relevant air pollutants. Not only are new industrial plants included, but requirements for old ones are formulated as well. After appropriate transition periods, old plants must be retrofitted to meet current technical standards and thus comply with emission levels required of new plants. The EU’s environmental requirements for facilities subject to licensing include all materials (air, water, ground) with simultaneous consideration of plant safety, energy efficiency and similarly affected areas.

United Nations Global Compact: The Global Compact is an international initiative of the United Nations that calls on companies to adhere to ten principles in the areas of human rights, labor standards, environmental protection and anti-corruption. With more than 7,700 participating companies, today it is the world's largest and most important network for corporate responsibility. It serves as a voluntary platform for education and discussion, providing participants with opportunities to exchange information and network and promoting fairer globalization. MAN has been a member of the UN Global Compact since 2010.