Sustainability
Report
2022

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Contents
Preface04

The MAHLE Group06

Sustainability Management

12

Climate and Environment

18

Working at MAHLE

28

Occupational Health and Safety

38

Sustainability in the Supply Chain

41

Human Rights

44

Responsible Corporate Governance46

Sustainable Innovations

50

Sustainable Finance

54

The MAHLE Foundation

55

SDG Index

58

GRI Content Index

59

Imprint/Contact

67

04

Preface

Preface
Dear readers,
The year 2022 was another challenging year for ourindustry. The war against Ukraine and other geopolitical tensions, disturbed supply chains, hefty price increases for freight, energy and raw materials, the threatof energy shortages put us under an unprecedented
stress test. At the same time the year was marked by
the continuation of numerous relevant legislative initiatives, such as the EU regulation of CO2 and pollutant
emissions for new vehicles.

Arnd Franz
Chairman of the Management Board
and CEO of the MAHLE GroupAs a foundation company, MAHLE always keeps aneye on its impact on the environment and people. Ecological and social responsibility form the guiding principle that connects all corporate activities. As a result,
we are pursuing an ethically correct and law-abiding
behavior, the health and satisfaction of our employees,
the safety of their jobs and the protection of the environment and resources along the entire value chain.
Our sustainability strategy has been expanded andincludes eight strategic areas that are based on thestrategic pillar of end-to-end sustainability. We strive tooffer sustainable and innovative products in our strategic future fields electrification, Thermal Management
and efficient internal combustion engines. MAHLE believes that a variety of technology solutions for mobility
are needed globally to achieve the climate targets asquickly as possible.

We have expanded
the CO2 Roadmap bysetting targets for our
Scope 3 emissions.

Climate change remains a key driver for our industry,
and we are proud that MAHLE is on track with its established CO2 Roadmap and reduced total Scope 1 and
2 by 12% compared to 2021. For a holistic approach,we have expanded the CO2 Roadmap to also cover

05

Scope 3 emissions upstream (goods and services webuy from our suppliers) and downstream (in particularemissions that are connected with the use phase of our
products) and set targets for our Scope 3 emissions as
well. To underline our commitment to meet the goalsof the Paris Agreement, we have submitted our Scope
1-3 targets until 2030 to the Science Based Targets
Initiative for external approval.
In order to make our products more sustainable, wehave developed methodologies to assess the environmental footprint of our products with lifecycle assessments and carbon footprints. This will enable us toengage with our stakeholders about our sustainability
performance and will contribute to make our products
more sustainable. In light of new requirements regarding supply chain diligence additional measures weretaken to ensure that environmental and social standards are met in our supply chain.

for sustainability purposes. Second, we are preparing
for the EU taxonomy regulation. Taxonomy will essentially influence the ability of suppliers to finance theirbusiness. The more products classified as sustainableby taxonomy, the better a company's access to sustainability financing sources. MAHLE is strongly committed to achieving a fair recognition of the contributionof automotive suppliers to climate protection in the automotive value chain in this process so taxonomy canhave its intended effect facilitating the transformation tosustainable mobility.
With this Sustainability Report 2022, we aim to informyou about our goals, strategies and measures as wellas the progress we have made in different areas. Our
report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards. By using thesestandards, we are strengthening the transparency of
our actions and laying the foundation for integrated
sustainability communication in the future.

Within a global shortage of skilled workers, we continued to drive our MAHLE HR – Human Resources
Roadmap forward. The introduction of a new competence model, a talent cycle as well as setting new
5-year targets for women in leadership positions were
important milestones.
Arnd Franz
Finance regulation around the world is evolving towards
more sustainability. Therefore, MAHLE has included
Sustainable Finance as a strategic topic in its sustainability agenda. First, to participate in the sustainablefinance segment MAHLE plans to publish the MAHLE
Sustainable Finance Framework within the first half of2023 which shall be used in the future to collect funding

06

The MAHLE Group

The MAHLE Group
MAHLE is a leading international development partner and supplier to the automotive
industry with customers in the passenger car and commercial vehicle sectors. The
technology group was founded in 1920. The company is active in three strategic
fields relevant for carbon neutral mobility: electrification, Thermal Management andhighly efficient and clean internal combustion engines including the use of hydrogenand e-fuels. In 2022, MAHLE generated sales of EUR 12.4 billion. The company isrepresented in around 30 countries with approximately 72,000 employees in 152
production locations and 12 major research and development centers. MAHLE is
headquartered in Stuttgart/Germany.

Markets and products
Our goal is to make mobility more efficient, more environmentallywhich also holds all of the voting rights and thus exercises thefriendly, and more comfortable. We want to actively accompa-

shareholder rights. This structure ensures our entrepreneurial inde-

ny the transformation of our industry and shape future mobility.

pendence, which creates the basis for long-term planning and far-

MAHLE has positioned itself clearly for the future: We will offersighted investment decisions. The MAHLE Management Board dis-our customers attractive, competitive, and sustainable solutions

cusses and makes common decisions from a group perspective.

in all major global markets and for all drive types. In doing so,
we will concentrate on those products in which we have or can

Further development of our value-oriented leadership culture:

expand a leading market position. True to our mission “Efficiency

MAHLE Leadership Principles

in Motion”, we help with our solutions to get as much power as
possible from liquid or electrical energy storage of mobile applications - tank or battery - by minimizing efficiency losses. Today,
one in every two vehicles globally is equipped with MAHLE components. In addition, MAHLE products are installed in stationary applications, mobile machinery, marine applications and rail

Empower withaccountability

Inspire forchangetransport.

Leadership
Principles

Our management approach
We are led first and foremost by our vision “We Shape Future
Mobility”, our predefined group goals and our leadership principles. The four MAHLE leadership principles provide direction
and the framework for a global understanding of leadership. The
nonprofit MAHLE Foundation holds 99.9 percent of the company’s shares, while 0.1 percent of the shares are held by Verein
zur Förderung und Beratung der MAHLE Gruppe e.V. (MABEG),

Trust each other

Lead byexample07

08

The MAHLE GroupThe Engine Systems and Components business unit

MAHLE is a leading international
development partner and supplier to theautomotive industry as well as a pioneer
and technology driver for the mobility of
tomorrow.

represents one of our core fields of expertise and reflects decadesof development and system know-how. The range of products
includes steel and aluminum pistons, piston rings, cylinder liners,
bearings and valve train systems.

The business unit Filtration and Engine Peripherals is one
Our management system helps us to achieve our business ob-of the top-selling suppliers in many product groups offering

jectives, meet international customer standards and comply withproduct solutions such as filter systems and components fornational and international standards and regulations. The basic

the engine periphery.

principles of our organization, management system and business processes are defined in the Group Management Manual.
Employees must follow the processes defined in this manual.
Advisory boards such as the Risk Management Committee or

The Thermal Management unit develops thermal solutions for

the Compliance Steering Committee review the management ofbatteries, fuel cells, power electronics and electric drives enabling

specific topics.

greater ranges, higher efficiencies and a longer service life.

The MAHLE Group is divided into five business units, which arealso responsible for breaking down the various goals into organizational processes. The business units are as follows:

Our expertise in the development and manufacture of electricmotors and of electronic and mechatronic systems forms thefoundation of our Electronics and Mechatronics business
unit, which is a growth driver within the MAHLE Group, particularly based on solutions for e-mobility.

Our Aftermarket business unit supplies trade, workshops
and engine repair partners as well as electronic retail platforms
around the world with products in original equipment quality,
service units and services.
Added to this are four profit centers: Motorsports and Special
Applications, Large and Small Engine Components, Industrial
Thermal Management and Control Units, which address specificmarket and customer segments. We serve customers in Europe,
North and South America and Asia/Pacific.

09

MAHLE Group business segments 2022
Sales: EUR 12,434 million | Headcount: 71,947
BUSINESS UNITSPROFIT CENTERS & SERVICES
Motorsports andSpecial Applications
Large and Small
Engine Components

Engine Systems
and Components

Filtration andEngine Peripherals

ThermalManagement

Electronics andMechatronics

Aftermarket

Industrial Thermal Management

Control Units

Central Service Businesses
EUR 2,593 million

23,689EUR 2,032 million

9,212

EUR 4,477 million

20,436

EUR 1,353 million

8,583

EUR 1,219 million

1,926

EUR 759 million

Sales
Headcount

8,101

Key figures of the MAHLE Group by region
Production locations/

Employees

research and development centers
Europe/Africa

Sales (in EUR
million)

59/5

31,983

5,481

of which Europe

57/5

31,1655,427

of which Africa

2/0

818

54

35/3

23,532

4,335

of which North America

27/2

14,7693,547

of which South America

8/1

8,763

788

58/4

16,432

2,618

152/12

71,947

12,434

America

Asia/Pacific
Total

10

The MAHLE GroupKey figures of the MAHLE
Group by region

North America
27 production locations
14,769 employees*
Sales of EUR 3,547 million
Canada, Mexico, USA

152 production locations

12 major research &development centersworldwide

Around 72,000 employees*

MAHLE as a reliable business partner
MAHLE has a responsibility for the upstream supply chain as
well as the fulfillment of our own supply obligations toward ourcustomers. We take this responsibility seriously in each of our
locations around the world and as a Group. Even more we strive

South America

to continuously improve our processes to consistently provide
our customers with reliable, high-quality products on time.

8 production locations
8,763 employees*
Sales of EUR 788 million

Logistics in the automotive sector are closely synchronized,

Argentina, Brazil

which means that supply disruptions can, in the worst-case scenario, lead to a halt in production for the customer. To that end
the risk monitoring of our own suppliers and the implementationof mitigation measures help to prevent us from a loss of supplies.
If a risk occurs despite risk mitigation measures, our contingency
plans help to maintain our deliveries to customers.

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Europe57 production locations
31,165 employees*
Sales of EUR 5,427 million
Austria, Bosnia and Herzegovina,
Czech Republic, France,
Germany, Great Britain, Hungary,
Italy, Poland, Portugal, Romania,
Slovakia, Slovenia, Spain, Türkiye

Asia / Pacific
58 production locations
16,432 employees*
Sales of EUR 2,618 million
China, India, Indonesia, Japan,
Philippines, Singapore, South
Korea, Thailand

Africa2 production locations
818 employees*
Sales of EUR 54 million
South Africa* As at December 31, 2022

12

Sustainability Management

Sustainability
Management
Sustainability has always been part of ouridentity. The link between environmental protection, good corporate governance, and theeconomy has become a success factor. Just as
we at MAHLE put a higher focus on the entire
value chain of sustainable mobility, our business partners are increasingly taking interest in
our sustainability management and requesting
insights into how we consider environmental
and social aspects in our activities.

Principles of sustainability
management
The principles that guide our actions are ethically correct andlawful conduct, the protection of the environment, resources andthe well-being of our employees. Sustainability means continuing
to be reliable for our customers while innovating our products tohave a reduced impact on the environment.

13

Sustainability ratings and rankings
show MAHLE among the 25% best
performing automotive suppliers.

14

Sustainability Management

Sustainability management
MAHLE's sustainability program was expanded by two
topics in 2022: Occupational Health and Safety andSustainable Finance.
n

The materiality analysis was updated with two newmaterial topics: Diversity and Talent Managementnin 2022. As the financial markets for sustainable finance are
growing and MAHLE will be subject to requirements from the

At a glancen

MAHLE's sustainability program was expanded by two topics

Sustainability ratings and rankings show MAHLE amongthe 25% best performing automotive suppliers.

European Taxonomy regulations in the future, a new strategic
sustainability topic ‘Sustainable Finance’ was identified in 2022.
Occupational Health and Safety have always been considered
one core responsibility of MAHLE which is now reflected in thesustainability program as a genuine strategic topic. The new topics were defined strategically significant fields of action which arealigned with the UN Sustainable Development Goals (SDGs).

The highest level of responsibility for Sustainability, Environmental

Accordingly, the Sustainability Steering Committee has been ex-

Management, and Safety at Work is at the MAHLE Management

tended and now includes the Chief Financial Officer to reflect theBoard. Strategic decisions related to the sustainability goals of

increased interconnection with sustainable finance.

MAHLE are made in the Management Board. Furthermore, ourSustainability Report must be approved by responsible members

The MAHLE Management Board is regularly informed about cur-of the MAHLE Management Board. Our sustainability management

rent sustainability developments and the status of the relevant

is regularly reviewed by the Sustainability Steering Committee. Ittargets. The operational implementation of sustainability-related

shall identify related risks and opportunities at an early stage andtopics with projects and measures is decentralized in the various

ensure the appropriate management of our sustainability projects.

business units and central functions of the MAHLE Group.

Organizational chart of our sustainability program
MAHLE Management Board
Group Steering Committee Sustainability
Strategic Topics
Social Topics& Employees

Occupational
Health & Safety

Sustainable
Procurement

Human
RightsBusiness Ethics& Compliance

Product
Development

Sustainable
Finance

EnergyEfficiency

Principles ofSocialResponsibility

Machine Safety

Sustainable
Suppliers

Working Group
Human Rights

Compliance@
MAHLE
Training

RecyclateFinancial
Framework

Own
Production

Diversity &Inclusion

Safety Culture

Emissions
Assessment

Material
ComplianceGreen Asset
Reporting

Product
CarbonFootprint

EU Taxonomy

Climate &Enviroment

Projects

Green energy& compensation

Safety Tours

Scope 3EmissionsLife Cycle
Assessment

CO2 Roadmap

Sustainability Report & Ratings, Program Management

15
The corporate function for Sustainability is responsible for thevalidate the resulting materiality matrix. In 2022, we involved

sustainability program management and a driving force forregional BU experts and several plant managers in a review tosustainability in MAHLE. It coordinates sustainability activities

better reflect the stakeholder views of our 152 production plants

throughout the Group, leads the regular updates of the material-around the world.

ity analysis, conducts performance monitoring, and ensures thetransparent communication and stakeholder dialogue.

The update of material topics 2022 reflects the importance of the
topic to our stakeholders and the impact of MAHLE. While theWe apply international standards relevant for our industry whenresults of the 2021 assessment were generally confirmed, minor

designing our management systems regarding the environment,

adaptions regarding the importance of selected topics have been

quality, and safety at work. Proper management systems are fun-considered: the importance of energy management as well as

damental to helping us assess sustainability risks and designing

water and effluent management has increased for scarcity rea-adequate mitigation measures. We regularly check if the man-sons in many regions. Social topics did also evolve. Firstly, theagement systems meet the internal and external expectations

importance of diversity and equal opportunity was emphasized.

and push to drive certification of our plants according to interna-

Secondly, attracting talents and talent management were accen-

tional standards.

tuated as additional topics that were previously integrated in employment. We are convinced that attracting talents is a strategic
success factor for MAHLE.

Defining material topics
Our materiality analysis is developed according to the guidelines
provided by the Global Reporting Initiative (GRI). We involved different global functions using their expertise to rank topics andMaterial topics for MAHLE
Material topics

Environment

Society

Governance– Emissions– Energy– Water & Effluents– Waste– Occupational Health & Safety– Diversity & Equal Opportunity– Employment– Attracting Talent / Talent Management– Anti-Corruption– Anti-Competitive Behaviour

Social Topics& Employees

Business Ethics& Compliance

Climate &Enviroment– Sustainable Mobility– Sustainable Materials
Sustainable
Procurement

Product
Development

Sustainable
FinanceOccupational
Health & Safety

Human
Rights16

Sustainability Management

Ratings and rankings
MAHLE's sustainability activities are regularly evaluated by ex-

CDP is a reporting platform with a focus on climate protection.

ternal agencies. The results show a good sustainability perfor-

MAHLE currently reports in CDP on the performance around cli-

mance of MAHLE.

mate and water protection. The rating B for CDP climate on ascale from A to D- corresponds to an above-average result glob-

Ecovadis is a cross-industry platform that enables customers

ally and in our industry.

to evaluate their suppliers according to sustainability aspects.
With a total of 57 out of 100 points, MAHLE has achieved silver

In 2022, MAHLE received an sustainability Risk Rating of 17.0

status in EcoVadis. This places the company among the firstand was assessed by Morningstar Sustainalytics to be at low

25% in our peer group (manufacture of parts and accessories

risk of experiencing material financial impacts from sustainability

for motor vehicles).

factors.*

Overview of sustainability ratings
RatingSummary

Result 2022

Result 2021

Improvement

Ecovadis

Top 25% in group (manufacture ofSilverSilverEnvironment

parts and accessories for motor

57/10056/100B

B

vehicles
CDP Climate

Above industry average

Scope 3 emissions
Emission reduction activities

CDP WaterIndustry average

B–

C

Water risk assessment
Businiss impacts
Integrated approach
Water accounting

Sustainalytics*

Low risk of experiencing material
financial impacts from sustainability
factors17

n. a.

Audited sustainability report
Environmental policy* In no event the rating shall be constructed as investment advice or expert opinion as defined by the applicable legislation. Copyright © 2023
Morningstar Sustainalytics. All rights reserved. This score contains information developed by Sustainalytics (www.sustainalytics.com).
Such information and data are proprietary of Sustainalytics and are provided for informational purposes only.

17

External engagement andpolitical dialogue

strictly with the aim of excluding any appearance of influence
from the outset. In political activities, the MAHLE Business Codedefines a clear code of conduct for our dealings with third parties. We are listed in the European Transparency Register with

As a global company, our active relationshipwith external stakeholders and political actors isdriven by two motivating elements: understanding important regulatory developments and providing our expertise to political processes. We
have established relations with, for example,
members of parliament, public authorities, ministries and government representatives. Hereby
we aim to engage with external stakeholders
and political actors in a solution-focused way.

respect to our lobbying activities at European level, same applies
to the Lobbyregister of the German Parliament.
Our focus in 2022
The year 2022 was dominated by distressing geopolitical events
caused by the Russian attack on Ukraine. Besides terrible human suffering the war led to political reactions as well as consequential external shocks on business, industry and society. Like
the majority of companies also MAHLE had to deal with resulting
effects, and we were closely monitoring any legislation discussed
and eventually implemented by policy makers.

Management and Activities of political relations

At the same time the year was characterized by continued policy

At Group level, the central department External Affairs coordi-

making of numerous legislative initiatives relevant to the indus-

nates relations with actors of public policy, above all with po-try. Most prominently the further implementation of the EU Green

litical decision makers in Germany and the European Union. In

Deal to achieve the EU climate targets for 2050. Major regulatory

addition, to direct exchange with representatives of government,

initiatives were further developed to continue de-carbonization of

authorities, or institutions, we actively participate in the formula-business impacting MAHLE as well. Especially the regulation ontion of political positions in relevant associations in Germany, theCO2 as well as pollutant emissions for new vehicles are of impor-

EU, and other countries. MAHLE holds regular discussions withtance to our company.

its stakeholders and is a member of various external initiatives,
such as the the European Clean Hydrogen Alliance initiated by

MAHLE is convinced that we need a variety in technology solu-

the European Commission.

tions for mobility to reach the climate targets as fast as possible.
We advocate that policy makers allow a regulatory framework,

Worldwide, we are active in various associations and networks,

which considers the contribution of different powertrain technol-

including industry associations such as the German Associationogies for sustainable road transport.

of the Automotive Industry (VDA) and the European Associationof Automotive Suppliers (CLEPA), as well as in organizations re-

In 2022, another important topic was the new regulations on

lated to finance, research and technology, IT, logistics, trade, andtransparency within the EU taxonomy. We welcome more open-

purchasing. These are valuable platforms for us in terms of com-ness in this regard and therefore advocate that innovations frommon interests within the industry and, in some cases, facilitating

the supplier industry should also be recognized within the EU

active communication with external stakeholders. Each associa-

taxonomy.

tion has to be in line with our values and has to follow strict codeson anti-trust policy for us to be in the membership.
MAHLE takes transparency very seriously.
We acknowledge that integrity is key for mutual trust and understanding in our political representation and have therefore recognized our ambition in our compliance requirements. In relation to
officials and elected officials, this applies without restriction and18

Climate and Environment

Climate and Environment
MAHLE is committed to its responsibility towards the environment and takes the
expectations of its stakeholders seriously. We have therefore integrated climate
and environment as a strategic topic into our business strategy.

Our environmental management system focuses on minimizing

Environmental management is overseen by the Sustainability &our ecological footprint and so contributing among others to the

Occupational Health, Safety and Environment (HSE) corporate

preservation of biodiversity in our immediate environment.

function with support from the regional departments. Four regional HSE heads report regularly on the status of HSE man-With energy-efficient and environmentally friendly process-agement in the MAHLE plants. This direct line of communicationes, MAHLE contributes to the Sustainable Development Goals

from our regions to the corporate function head ensures a con-(SDGs) Clean Water and Sanitation (SDG 6), Affordable andstant flow of communication at MAHLE.

Clean Energy (SDG 7), Sustainable Consumption and Production(SDG 12), and Climate Action (SDG 13).

Each production location has an HSE team or at least one HSE
officer to ensure compliance to regulations and our management
system. The responsibilities of the local HSE representatives include recording key HSE figures regularly and providing support
toward the implementation of the HSE targets. We manage ourenvironmental performance on the basis of the Plan, Do, Act,
Check cycle. For the most important topics we have defined key
performance indicators (KPIs) on different levels to monitor our
progress. Based on the reporting, KPIs are aggregated acrossthe Group and discussed regularly within the MAHLE Management Board.
Our regional HSE representatives coordinate internal surveillance audits as part of audit programs and report monthly tointernal stakeholders to ensure continuous improvement at theEnvironmental management
Combining stakeholder requirements with ourown environmental goals is part of our strategy
toward reducing our environmental footprint, increasing efficiency, and making us more resilient.
At a glancen

In 2022, 140 of our 152 locations were certified in accordance with the environmental management system ISO
14001 and/or EMAS.

sites. In addition, external audits are conducted to ensure ourcompliance with statutory environmental requirements. Employees participate in finding the root cause of incidents, cases of
non-conformity and in establishing corrective actions. These
actions are later evaluated to ensure that similar incidents areprevented. For cases of non-conformity, the same process isfollowed, and the corresponding actions and corrective measures are documented.

19
Our group-wide Guidelines for sustainable occupational health &and derived Scope 3 targets aligned to the SBTi methodology.

safety, environmental and climate protection instruct us on how

MAHLE has the goal to be climate neutral by 2040, and 49%

to handle complex environmental topics. It specifies in more de-of emissions in production are to be avoided by 2030, which

tail how environmental standards have to be taken into consid-

includes both Scope 11 and Scope 22 emissions. Emissions gen-eration during the development of new products and processes

erated in the supply chain (Scope 3, Category 1) and throughand calls for existing processes to reduce their environmental

product use (Scope 3, Category 11) are to be reduced by 28%

impact. One example is the MAHLE Business Code, which spec-by 2030. The base year for all calculations is 2019. To achieve

ifies our objectives for health, safety, environmental and climate

the Scope 1 and 2 targets, we are acting in the following areas:

protection.
1. We aim to increase energy efficiency by 2% very year.
Our environmental management system is based on strict international standards. In 2022, 140 of our 152 locations were certified to ISO 14001 and/or EMAS.

2. By operating our own photovoltaic systems, we want to generate electricity from solar power.
3. We want to increasingly use renewable energy sources to cover our electricity demand and minimize our CO2e emissions.

Climate protection

Management of Greenhouse Gas Emissions
The Paris Agreement is a legally binding international treaty toaddress the effects attributed to climate change It was adopted by 196 countries at the 2015 Paris Climate Conference andits goal is to limit global warming to well below 2°C, preferably
to 1.5°C, compared to pre-industrial levels. MAHLE aims to becompatible with the goals of the Paris Agreement.

Climate protection is one of the most urgent challenges facing

We record the Scope 1 and Scope 2 greenhouse gas emissions

the world. MAHLE is therefore striving to significantly reduce itsthat are connected to our own business activities (including joint

impact on our climate. Thus, we have integrated climate protec-

ventures) and the Scope 3 emissions along the value chain.

tion as a strategic topic into our business strategy.
The most important energy sources used in our plants are elecAt a glancenntricity and natural gas that is used in our energy intensive pro-

MAHLE has committed itself to reduce Scope 1 and 2

duction processes like foundries and welding. With more thanemissions until 2030 by 49% and to be neutral until 2040

two thirds of the total energy consumption most of the green-(baseline 2019). In 2022, we were able to reduce thesehouse gas emissions stem from the use of electricity. Last year,

emissions by more than 12% compared to 2021.

our CO2e emissions from the use of electricity decreased by

MAHLE has committed itself to reduce Scope 3 Emissions,

14% compared to 2021, although the consumption of electricity

category 1 and 11 by 28% each until 2030 (baseline 2019).

increased slightly by 1%. This change is mainly due to the increased purchase of less carbon-intensive electricity. Our pro-Climate change has become the main driver of transformation induction locations in Germany have compensated their Scope 1

the automotive industry. In 2022, MAHLE strengthened its am-

and Scope 2 (district heating) emissions with carbon offsets.

bition, committed to the Science-based Targets initiative (SBTi)

1

Scope 1 covers direct greenhouse gas emissions from combustion processes in the company’s own facilities, operations, and vehicles, i.e.,heating systems, engine test benches, and company vehicles, for example.

2

Scope 2 encompasses the greenhouse gas emissions produced in the generation of purchased energy, such as electricity, district heating,and steam.

20

Climate and Environment

Scope 1 and 2 emissions in 2021/2022
Greenhouse gas emissions 2021/223

Unit

2021

2022

ChangeScope 1

kt CO2e

210

197

– 6%

Scope 2 – market based

kt CO2e

866

747

–14%

Scope 2 – location based

kt CO2e

803

812

1%

Total emissions (market based)

kt CO2e

1,076

945

–12%

Offsets of emissions in Germany

kt CO2e–33–26

Total emissions including offsets Germany

kt CO2e

1,044

919

kt CO2e/9876

Relative emissions as measured against sales

EUR million sales

Ethanol use in Brazil
In Brazil MAHLE has started an initiative to switch tothe use of ethanol in the car fleet. The clear objective
is to use green energy and cut emissions. Brazil is agood showcase for green mobility based on internal
combustion engines: As most company cars haveflex fuel engines and gas stations commonly offer ethanol, it was possible to abide gasoline use by blocking it through the fuel card. The project started in July
2022 for more than 70% of all fuels used in company
cars and cut carbon emissions by half.

3

Scope 1 and 2 emissions reflect the use of guarantees of origin for electricity as well as emission reduction certificates in Germany.

–23%

21
A significant achievement in 2022 was the setting of Scope 3

harmonized to 2019 for all reduction targets, without altering ourtargets to complement the Scope 1 and 2 targets after a thor-

Scope 1 and 2 reduction path. To ensure that our climate tar-ough assessment of our emissions along the value chain. Basedgets are ambitious and aligned with international efforts to meeton the GHG Protocol we determined the most relevant Scope 3

the goals of the Paris Agreement, MAHLE committed to set sci-

categories and calculated the emissions accordingly. The largest

ence-based targets and submitted these to the Science Basedshare of our carbon footprint comes from upstream emissions ofTargets initiative (SBTi) for external validation.

the raw materials and services we purchase and from the use of
our products (Scope 3 Category 1 and 11 according to the GHG

To support and monitor progress in this respect, additional pro-Protocol).

cesses and tools were implemented. An analysis across the entire value chain showed that parts and assemblies from external

Our total Scope 3 emissions in 2022 amount to more than 31

suppliers have a significant impact on MAHLE’s CO2e footprint.

million tons of CO2e. We have set ourselves targets for reducing

Therefore, it is essential to record these CO2e emissions andScope 3 emissions by 28% until 2030 in upstream category 1

to define measures to reduce them in collaboration with ourand downstream category 11. Our base year was consequently

suppliers.

Scope 3 Greenhouse Gas Emissions in 2022
Scope 3 Category

Unit

2022

Share of Scope
3 emission

01 Purchased goods and services

kt CO2e

5,891

18.9%

02 Capital goods

kt CO2e256

0.8%

03 Fuel- and energy-related services

kt CO2e290

0.9%

04 Upstream transportation and distribution

kt CO2e91

0.3%

05 Waste generated in operations

kt CO2e67

0.2%

06 Business travel

kt CO2e20.0%

07 Employee commuting

kt CO2e114

0.4%

08 Upstream leased assets

kt CO2e

n.r.

n.r.

09 Downstream transportation and distribution

kt CO2e16

0.1%

10 Processing of sold products

kt CO2e294

0.9%

11 Use of sold products

kt CO2e24,136

77.4%

12 End-of-life treatment of sold products

kt CO2e120.0%

13 Downstream leased assets

kt CO2e1

0.0%

14 Franchises

kt CO2e

n.r.

n.r.

15 Investments

kt CO2e

n.r.

n.r.

Total

kt CO2e31,172100%

22

Climate and Environment

Energy monitoring
Each location records their monthly consumption figures in a cen-

In 2022, we introduced a complementary program and imple-

tral database so that deviations in monthly trends can be identi-

mented Energy Sprints to enhance energy management. MAHLE

fied and investigated. In 2022, we started to report energy andtrained more than 30 people of different backgrounds on an ener-

emissions related developments regularly and comprehensively,

gy audit methodology specifically adapted to MAHLEs needs. En-

e.g., through monthly reports for business units and regions asergy Sprints are carried out by a team consisting of experts fromwell as a quarterly report for our management. Annual energy ef-

different plants over several weeks and typically start with data /ficiency targets are defined on plant level. At our locations, we

information collection, on-site energy audits with brainstorming

mainly use electricity, natural gas and heating oil as sources ofand identification of potential measures which are presented toenergy. Electricity consumption, natural gas and other energies

the plant management. The main idea is to identify energy effi-increased along with increased production levels. Total energy

ciency potentials and cost savings, but also best practice sharing.

consumption increased by 1% compared to 2021 but improved

In 2022, six energy sprints have been carried out and it is intend-

specifically by 11% relative to annual sales.

ed to make them an integral part of our continuous improvement
and optimization process.

Energy efficiency has always been an integral part of our environmental management systems on group and plant level. At the

In total, MAHLE has worked on approximately 190 energy efficien-

end of 2022 thirteen locations were certified in accordance withcy projects in 2022 resulting in reported energy savings of about 27

the ISO 50001 energy management system and 24 according to

GWh. Although significant savings have been achieved on a pro-the EMAS standard. At these locations the energy management

ject basis, reducing energy consumption significantly comparedis supervised by an energy manager and with their support, we

to our base year 2019 remains a challenge.

subject energy-intensive processes to continuous testing. Some
plants also carry out their own energy audits.

Energy consumption by source in 2021/2022
Energy source

Unit

2021

2022

ChangeTotal electricity

GWh

2,118

2,139

1%

(of which nonrenewable)

GWh

1,780

1,803

1%

(of which renewable)

GWh

338

336

0%

Heating oil

GWh

29

26

–9%

Natural gas

GWh

896

917

2%

Other

GWh

99

102

4%

Total

GWh

3,141

3,184

1%

287

256

–11%

Relative energy consumption as measured
against sales

GWh/
EUR million sales

23

Sustainable productdevelopment

It is important for us to understand the sustainability impact ofour products, to be able to offer carbon friendly products andto set targets for improvement. MAHLE has therefore developed and implemented lifecycle assessment and product car-

MAHLE’s activities in sustainable product development con-bon footprint methodologies for this purpose. This approachtribute to the Sustainable Development Goal Responsible Con-

shall ensure that all relevant environmental aspects are consid-

sumption and Production (SDG 12).

ered starting in the product development process.
The product carbon footprint methodologies cover the productcarbon footprint of our supply chain, production and logistics
as well as additional costs for low carbon energy and offsets.
Complementing our climate strategy for Scope 1 and 2 emissions MAHLE set itself the goal to reduce Scope 3 GHG emis-

It is one of our core challenges to develop our business toward

sions in by 28% by 2030 from a 2019 base year. To support

a circular economy. We use raw materials in our production pro-and monitor progress of our Scope 3 GHG emissions targets

cesses, and we need energy to process these products which

in Cat. 1 ‘purchased goods and services’ additional processes

affects the environment. Scarcity and price increases for raw

and tools were implemented.

materials and energy have a significant impact on business activities. For reasons of environmental protection and cost-effec-

An analysis across the entire value chain showed that parts andtiveness it is our goal to use resources efficiently and to limit theassemblies from external suppliers have a significant impact on

impacts of our processes.

MAHLE’s CO2e footprint. Therefore, MAHLE has started a pilot
project to determine the product related emissions in collabo-

At a glancennration with our suppliers. This approach brings transparency

MAHLE enhanced accounting methodologies for lifecycle

and identifies main emissions drivers. One exemplary outcome

assessments and carbon footprints of products.

is that MAHLE defines specific and ambitious requirements for

We are actively working to increase the use of recycled

the use of renewable energy or low carbon materials in select-

materials and have achieved good results in resins fored projects. A similar process was implemented for lifecycle

the past 3 years, despite deteriorating market conditions.

assessment. It shall ensure that sustainability aspects beyond
GHG emissions are considered early on and effectively. ThisTo be sustainable in the long-term, material loops need to beshall facilitate that all legal and customer requirements can beclosed. We strive to contribute to resource conservation by

met. Among other benefits, it will be possible to:putting a greater focus on the sustainable composition of our
products and on making our products more recyclable and cli-nmate friendly, while meeting the needed product and material
quality. Therefore, we focus on the sustainable development

effective actions at the most relevant development stages,nof products and the purchasing of sustainable materials earlyon. Working towards a circular economy is a task that involves
MAHLE as a whole, from R&D and purchasing to production
and sales.
Product Lifecycle Assessments and Carbon Footprint
Lifecycle assessments and product carbon footprints have become an important metric for most of our customers.

Identify improvement potential within product life cycle to take
Compare alternative designs and products in regard to environmental impacts,n

Provide detailed environmental information to internal andexternal stakeholders.

24

Climate and Environment

Recycled materials

gredients of purchased products, and for recording the recy-

We aim to increase the recycled content of plastics and metals,

cled content of the materials and purchased parts.

such as aluminum and steel. Our first step in this direction is
our new requirement for suppliers to report whether they use

Furthermore, the Substances of Concern (SCIP) database ofrecycled content in their products via the International Material

the European Chemicals Commission (ECHA) has been used

Data System (IMDS).

since 2021 for the declaration of substances of very high concern (SVHC).

In the past years, MAHLE has assessed ways to increase theshare of resins from renewable materials. The volumes used

MAHLE pursues the goal of ensuring that all relevant spec-

decreased from about 10,300 tons in 2020 (8%) to 7,200 tons

ifications for materials and substances used are compliancein 2021 (6%) and 3,100 tons in 2022 (2%). The decline is root-and considered when selecting suppliers. For this purpose, theed in market conditions that prevented MAHLE from securing

relevant laws, public standards, and customer requirements

recycled compounds in North America. The main reason lies inare regularly evaluated, and criteria are derived that are to bea global shortage of glass filler necessary to produce recycledconsidered in the selection of suppliers. In order to raise aware-

resins. This was evident in several suppliers, therefore prime

ness to the importance of the provided information, to improve

was used instead of recycled material to avoid stoppages at

suppliers’ compliance performance and to achieve a stronger

customers due the supply chain failures. Although MAHLE in-commitment, we established an open channel for trainings andtends to increase the recycling share of resins already in the de-information exchange with our supplier’s.

sign phase, specific OEM product design requirements which
often cannot be met by recycled compounds limit this capa-

Amongst other projects in 2022, we worked intensively on thebility. However, for 2023, we plan to switch back to recycled

replacement of trichlorethylene used in degreasing processes

polymers where it is possible.

in our Asian locations. In course of the interdisciplinary projecttechnical requirements of the production process in the loca-

Hazardous substancestion and potential alternatives were tested and implemented

The main target of our management system for hazardous sub-successfully in close collaboration with process technology

stances is to replace the use of carcinogenic, mutagenic, bio

and the plant.

cumulative substances as well as substances which are toxic
for the reproduction, also known as CMR substances. Like us,
our suppliers are required to comply with all binding chemical regulations like Registration, Evaluation, Authorization, andRestriction of Chemicals (REACH), Restriction of certain Hazardous Substances (RoHS), the EU End-of-Life Vehicles (ELV)
Directive, the EU Persistent Organic Pollutants (POPs) Directive, the Chemicals Regulation, and the Dodd-Frank Act. The
material requirements apply, among other things, to chemical
substances used in manufacturing process, purchased partsand packaging.
MAHLE uses the International Material Data System (IMDS) of
the automotive industry and Compliance Data Exchange (CDX)
for industrial and non-automotive business for the declarationof ingredients. This is mandatory for the declaration of the in-25

Waste management
MAHLE’s waste management contributes to the Sustainable De-

entirely. That is why the second step in the pyramid, preparation

velopment Goals (SDG) Responsible Consumption and Produc-for reuse, also takes high priority. We aim to further recycle anytion (SDG 12).

waste that cannot be reused, while disposal without a recovery
of materials should only take place in exceptional cases.
The amount of waste created is regularly part of our reporting
processes. Since most of our production plants are ISO 14001
certified, their waste management is included as one of the standard environmental topics. We utilize our HSE Process Check
Instruction to ensure that waste reduction is considered in the

Our processes are designed to efficiently use materials in ourdevelopment of new products. This process also requires plants

production and packaging processes. Our waste management

to assess the environmental effects of any changes made tofollows well established priorities. We strive to minimize scrap andproducts or processes. Our waste management is regularly

surplus, although it is not possible to eliminate production wastemonitored and subject to external and internal audits.

Waste in 2021/2022
Type

Unit

2021

2022

Metalstons

93,93893,938

Plastics

tons

5,215

5,454

Non-hazardous waste for recycling

tons

38,18040,854Non-hazardous waste for landfill/incineration

tons

32,39633,187

Hazardous waste for recycling

tons

14,787

15,160

Hazardous waste for landfill/incineration

tons

16,441

17,568Overall generated waste

tons

200,957

206,161

tons/EUR million sales

18

17

Relative waste as measured against sales

26

Climate and Environment

Water and wastewater
MAHLE’s water management contributes to the Sustainable De-

Risk Analysis. We defined water stress as the two highest cate-velopment Goal (SDG) Clean Water and Sanitation (SDG 6).

gories in the tool (‘extremely high-water stress’ and ‘high water
stress’). Based on the assessment, five locations are in areas ofextremely high-water stress. These locations are responsible forabout 220 megaliters water withdrawal in 2021. Additional threelocations are in areas with high water stress. These locations are
responsible for 447 megaliters water withdrawal. In total, our locations in areas with the highest or high-water stress are responsible for 12% of our overall water withdrawal. MAHLE sets site
specific targets for water management that are pursued within

To improve the management of water consumption in the future,

the environmental management systems of the location.

we developed a group-wide water reporting system. The water
KPIs for each location are accessed via our global HSE data-

In 2022 we largely utilized groundwater, third party water andbase. We also report on our water usage to the CDP. In 2022 ourwater from the public supply network. Additionally, we further

reporting on water management was awarded a grade B-, on aextend the use of water in a circular way to not waste it—for

scale from A to D. In early 2022 we have undertaken a risk-based

example, as rinsing and cooling water. Total water withdrawal

assessment of our operating sites to assess their dependency on

increased by 11% in 2022 with production levels. We intend towater withdrawal from water stress areas. The assessment was

intensify our water management activities to reduce water con-based on the World Resources Institute (WRI) Aqueduct Water

sumption in the long term.

Water withdrawal in 2021/2022
Water source

Unit

2021

2022

ChangeThird-party or public water

ML

3,596

3,738

4%

Groundwater/well water

ML

4,351

5,128

18%

Surface water

ML

84

84

0%

Groundwater withdrawn (processed)

ML

209

216

3%

Total water withdrawal

ML

8,285

9,166

11%

Water source

Unit

2021

2022

ChangeRecycled water from third parties

ML

45

85

91%

4

Recycled water in 2021/2022

4

Including recycled water

27

Rainwater harvesting system saves costs and covers
water requirements of MAHLE ANAND Filter Systems
MAHLE is committed to the conservation and protection ofnatural resources. In line with this commitment, a rainwater
harvesting system was installed at the MAHLE ANAND Filter
Systems plant in Pune/India.
Throughout the plant, well water is used for supply. The
new system feeds rainwater into the groundwater and thus
stabilizes the groundwater level. During dry periods, thisprocess ensures the supply of well water without the risk of
the groundwater level dropping too much. The new system
has a capacity of 28,000 m3 per year.
Future needs and possible expansions were already considered when designing the rainwater collection system. Prior
to the installation of the facility, a hydrogeological survey
was carried out to analyze the rainfall runoff situation. Subsequently, the rainwater harvesting system was equippedwith the latest technology, such as piezometers and digitalwater meters to monitor the groundwater level. Special FRP(Fiberglass Reinforced Plastics) tanks with a long service life
are installed in the total of nine recharge pits.

28

Working at MAHLE

Working at MAHLE‘People come first!’ This motto passed down by our company founders Hermann
and Dr. Ernst Mahle still applies today and is reflected in our company philosophy.

In 2022, sustainability has evolved at a fast pace and brings

Our activities contribute to the Sustainable Development Goal

many challenges. For MAHLE it is crucial to take the right people(SDG) Decent Works and Economic Growth (SDG 8).

along the journey. Therefore, it is more than ever important that
MAHLE is an attractive employer that people will be enthusiastic
about working for. Especially in time of change, we place a highvalue on our employees’ continuous development. It is essential
for our company’s future success that our staff is fit for the futureand feels a part of the MAHLE family. This is why safety andequal opportunity in the workplace are top priorities and why weactively oppose all forms of discrimination.

HR Roadmap as cornerstone for strategic HR work
MAHLE is undergoing a fundamental transformation. This is also
reflected in the strategic realignment of our work in HR. In line with

MAHLE as an attractive
employer

our HR Roadmap developed in 2020, we are adapting existing

As a foundation-owned company, we have a unique responsibil-

Overall, our HR Roadmap focuses on five strategic areas of action:

structures and processes of HR, tailoring them to the requirements
for accelerated transformation.

ity towards our employees. They are our most valuable resource.
Their ideas and individual skills, their commitment and motiva-ntion, are key to greater innovation and will ensure our future viability in a transforming mobility world. It remains critical to attract

Purpose & Agility: Enabling a culture of purpose, accountability
and innovation to attract & retain the right talentnTalent to Value: Identify, develop and enable diverse talent withand retain talent and to further strengthen our position as an

specific capabilities and leadership following a clear talent-to-

attractive employer in all regions. Our diversity and unique teamvalue logic

spirit are our greatest advantage in shaping future mobility andwill remain crucial to master the challenges of tomorrow.

n

Performance Recognition: Next generation performance management to drive business priorities, incentivize performanceand accelerate results

Purpose & Agility
Culture & new ways
of working

Talent-to-value& BusinessBusiness-driven talentmanagement

Performance
Recognition
Performance &compensation
management

Disruption
Architecture
Organizationalchange &designAcceleration of
Efficiency
HR operations
excellence

29
n

n

Disruption Architecture: Driving & facilitating organizational

Talent acquisition and retention remain key

change and optimizing the company footprint in times of disrup-

Talent acquisition remains critical to meet our global businesstion and restructuring.

targets. In the face of talent shortage, the importance of internal

Acceleration of efficiency: Providing high quality, efficient & com-mobility has continued to prove key to quickly filling positions

pliant HR transactional operations, services and data.

and providing benefits from transferring skills and knowledge
sharing. All measures were supported by the upgrade of our

Employer Branding in tight market conditions

global HR system landscape, including a new applicant manage-

The growing global shortage of skilled workers requires increased

ment system that was successfully implemented in 29 countries

efforts and differentiated approaches to counter it. We support

worldwide. With a new system in place, we are moving towards

local initiatives that introduce young people, especially girls, toa nearly paperless recruitment environment which offers many

Science, Technology, Engineering and Mathematics (STEM)

benefits for internal and external candidates and enables us toprofessions at an early stage, helping to build a new generation

meet our ‘candidate first’ philosophy. We ensure more trans-of talent. In Germany, for example, we traditionally support theparency and an enhanced candidate experience by improved

annual Girl's Day. In 2022, we were awarded a special nation-communication, standardized selection processes and a morewide STEM award for this longstanding commitment and our

streamlined internal hiring process.

involvement with the Girls Day Academy. South Africa is anotherexample, where we have been collaborating with the Center

Retaining new and existing employees in value-critical functions

for the advancement of science and mathematics education

is equally important and is at the heart of our strategic reten-(CASME) since 2013, which seeks to develop math and sciencetion activities. The introduction of new leadership principles in

education at schools in rural and under resourced areas such as2020 and the ongoing adaptation of our broad range of devel-with the Science2Go project.

opment opportunities help create a work culture that binds our
employees to the company. This is complemented by retention

Our Employer Branding activities provide the basis for making

measures designed specifically for individual employee groups,

talents aware of what MAHLE offers as an employer. This pri-

ranging from employee assistance programs for newcomers, tomarily includes strategies that place us as an employer of choice

reintegration measures after extended absences, and a range ofwith our target audience. We reach out to job seekers aroundflexible working options to meet increasing demands for work-

the globe through appropriate (social) media channels and face-life balance. Accordingly, our employee turnover rate for 2022

to-face contact by showcasing the entirety of our employment

stayed almost unchanged compared to the previous year at

experience and highlighting our exceptional, diverse, and inter-

1.8%, despite the increasing movement on the labor market after

national teams. We continuously improve our marketing strategy

the pandemic.

to meet the changing needs of our target groups. For our HR
Marketing and Employer Branding activities we were granted
several awards again this year such as ‘Potential Park’, ‘MINT
minded Company’ and ‘Great Place to Work’. MAHLE was alsoranked as a top employer in ‘Best Recruiters’, ‘Leading Employers’ and ‘Diversity Leaders’.

30Working at MAHLE

Our employees
Employee development
At the end of 2022, 71.947 employees were working for the
MAHLE Group worldwide. This corresponds to a year-on-yearincrease of 649 employees, or 0.9%. The main reasons for thisdevelopment were our organic growth, especially in future-oriented areas, a good order situation, strong production capacity
utilization, particularly in North America and especially in Mexico, and the increased expansion of our shared service centersworldwide.
Headcount development 2016–2022*
Hybrid work as part of a new working culture

80,000As a company, we are committed to providing a work environ-

70,000ment that positively impacts performance, employee satisfaction,

60,000engagement, and retention. We foster hybrid-working models
which include both on-site and remote working as part of a stateof-the-art working culture. Our approach allows employees toperform their job where they will be most productive and where

50,00040,00030,00020,000they can align their working style with their individual needs. With

10,000this, we strengthen a global working culture that is characterized0

by flexibility, self-management, trust and personal accountability.

2016

We further established a hybrid working mode with the roll-out

2017

2018

2019

2020

2021

2022

* Only figures for 2021-2022 included in PwC assurance scopeof a Global Remote Working Guideline and several workspacepilots including desk sharing concepts and open space offices.

Despite an overall decrease of personnel in our European coun-

By creating modern and inspiring workspaces which are efficienttries in connection with restructuring measures due to the generalin terms of space utilization, we maintain our attractiveness as antransformation of the automotive sector, the ongoing expansion

employer, improve our carbon footprint and reduce infrastructureof the Electronics and Mechatronics business unit resulted in an

related costs.

increase in the number of employees in some European countries.

Total number of employees by region (head count)
RegionEurope

North

South

Asia-

America

America

Pacific

AfricaTotal

Total employees

31,165

14,7698,763

16,432818

71,947

Change to previous year (absolute)–1,282

1,570

27

371

–37

649

Change to previous year (in %)

–4.0%

11.9%

0.3%

2.3%

4.3%

0.9%

31
In South America, following the sharp reduction in the workforce

4,077 workers were loaned temporarily for the MAHLE group fromat the start of the Corona pandemic in 2020, the growth trend in

external service providers in 2022. This figure is driven by differ-the number of employees already seen there in the previous year

ent market conditions in the regions, such as increasing orders incontinued in fiscal year 2022. In Asia/Pacific we also recorded anWestern Europe which led to a short-term increase in the number

increase of headcount, while Africa had slightly fewer employees

of loaned and temporarily employed production personnel in orderoverall.

to instantly meet demand.

Type of employments5
While most of our global workforce is permanently employed andworks full-time, we also employ 1,293 members of our staff on apart-time basis, 68% of whom are women.

Number of employees per type of employment and by region (head count)
RegionPermanent

TemporaryTemporary

Employees

Employees

Employees(≤ 3 months)(> 3 months)

Apprentices

Interns

Parttime

LoanedEurope27,738

345

1,453

640

214

1,218

2,110

North

14,387

21

52

0

76

37

416

8,562

0

2

100

129

1

96

12,390

27

460

20

14

35

1,455

Africa

806

0

1

0

37

2

0

Total

63,077

393

1,967

760

470

1,293

4,077

Apprentices

Interns

Parttime

LoanedAmericaSouth
America
Asia/Pacific

Number of employees per type of employment and by gender (head count)
Gender Key

5

Permanent

TemporaryTemporary

Employees

Employees

Employees(≤ 3 months)(> 3 months)

Male47,224

200

1,305

634

280

413

2,660

Female15,851

193

662

126

190

880

1,417

Total

63,077

393

1,967

760

470

1,293

4,077

Employee data of the following sections covers 98% of global employees included in our HR group reporting. Not included: inactive
employees, joint ventures.

32

Working at MAHLE

We consider it our responsibility to provide young people with on-

continues to be on internal recruiting to provide employees with

the-job education and state-of-the art apprenticeships. There-

opportunities for development through internal mobility.

fore, 470 interns and 760 apprentices were trained at many of
our sites worldwide in 2022. The work of the intern complements
the work of our employees while providing significant educational
benefits as well as the opportunity to gain experience and develop professionally. During an internship students gain valuable

Representation of
employee’s interests

insights into our daily business and thus it is also an important
tool to place us as a future employer of choice. Apprenticeships

It is important to us to have trustful relationships with ourare being offered in various business-, technical- and produc-

employees and their representatives. We communicate reg-tion-related occupational fields and lay the foundation for manyularly and openly on business developments and initiativesof our much-needed professions. After a successful internship or

through various internal communication channels such as theapprenticeship, our goal is to enable a permanent takeover into

Intranet, our employee app or magazine. Measures related tothe company.

adjustments of positions or site closures are generally implemented in a socially responsible manner. In most countries

New employee hires

and locations, there are local employee representation bodies

In the year under review, 14,455 new employees were hiredwith whom we cooperate closely. Globally, the working con-worldwide, 4,874 (34%) of whom were women. Encouragingly,

ditions of around 72% of our workforce are subject to a col-this corresponds to a higher proportion of women compared tolective bargaining agreement. In Germany, in addition to thethe proportion of women in the total workforce (26%).

location-based Works Councils, a Central Works Council represents the overriding interests of the workforce. The employee

The hiring figures were driven by the development of individual re-representatives from our European locations also send dele-gions with high growth targets. Furthermore, the focus worldwide

gates to a European Works Council.

Number of new employee hires by age group, region and gender (head count)
Region< 18 years

18-29 years

30-49 years

50-64 years> 65 years

Total

Europe

119

1,633

1,328

275

6

3,361

36

538

404

91

3

1,072

2

3,784

3,060

513

25

7,384

0

1,369

1,053

182

14

2,618

52

729

422

26

0

1,229

23

217

151

10

0

401

0

966

1,315

183

10

2,474

0

291

418

65

4

778

0

2

5

0

0

7

0

1

4

0

0

5

173

7,114

6,130

997

41

14,455

thereof female
North America
thereof female
South America
thereof female
Asia/Pacificthereof female
Africathereof female
Total

33
Percentage of employees covered by collective bargaining agreements6

13%
35%

EuropeNorth America
65%
87%

1%

39%

South America

Asia/Pacific99%

Numbers of employees covered

6

Numbers of employees not covered

Data 12/31/2022 without Joint Ventures (JV ) or temporary workers

61%

34

Working at MAHLE

Learning and development
State-of-the-art Talent Management framework
The diverse talents of our employees are the key to our corporate
success. In terms of Talent Management, we have started therollout of our new Talent Cycle as a global framework to support
our organization with the talent capabilities needed in a changing
mobility world. The Talent Cycle is an annual, globally aligned
approach. It sets standards for performance evaluation andEach training content reflects the competencies defined in our
new MAHLE competency model. The new model provides aclear orientation to all employees in their professional and personal development as it identifies the competencies that are
essential to the success of the individual, the team, and theentire organization in the ongoing transformation. The model isbased on our corporate strategy, our vision and our leadershipprinciples and takes the dynamic changes of our business environment into account.

recognition, contributes to a better feedback dialogue between
managers and employees, and provides guidance for individual
development.
One major element of the Talent Cycle is the annual performanceand development dialogue, in which employee and manageralign on individual goals, discuss strengths as well as development needs, and agree on development goals. In the year
under review, 86% of all employees globally received their annual
review. Our new HR tool landscape supports the new performance review process and contributes to further standardization.
Redesigned Learning & Development landscape
We continued with the implementation of a new learning& development landscape providing more accessible anddemand-oriented learning opportunities on a global level. A
comprehensive global training and development catalogue which
includes cross-functional and career-related learning content, isaccessible to all employees and is constantly being updated.
New offers include employee access to a global E-Learning
platform from business or private devices, expanded language

MAHLE commits to the principle of life-long learning and will con-courses or cyber security awareness trainings.

tinue to empower our global workforce with the skills needed ina transforming mobility world. Targeted training and qualification
programs support our employees and managers in their necessary re-/ and up-skilling efforts toward future job profiles and newareas of competence.
The roll-out of a new global learning system to standardize training administration, harmonize global learning processes and simplify access to learning offerings supports our ambitious targets.
The new IT solution went live in eleven countries this year andwill be available in 17 languages for all MAHLE employees by theend of 2023.

35

Diversity, equal opportunity,
and nondiscrimination
Diversity, equal opportunity and nondiscrimination are firmly

Target of 20% women in Supervisory Board met.

anchored in our corporate values as an internationally operatingcompany. We appreciate our global workforce – regardless ofgender and gender identity, nationality, ethnic origin, religion or
belief, disability, age or sexual orientation. We promote diversity

New targets for 2027 set:
10% women on First Executive Level
15% women on Second Executive Leveland inclusion of the different experiences and backgrounds of
our employees and see this as an opportunity: Through Diversity& Inclusion (D&I), we can increase our innovative performanceand support our business goals. MAHLE made a group-widecommitment to promote D&I and to implement corresponding
initiatives by signing the Diversity Charta in 2016. All these measures contribute to the Sustainable Development Goals (SDGs)
Gender Equality (SDG 5) and Reduced Inequalities (SDG 10).

Various local policies are in place to confirm our commitment toa discrimination free workplace and to set rules and guidelines
regarding the prevention of harassment. Our North and SouthAmerican locations also launched employee led D&I Councils,
which meet on a regular basis to work on local D&I initiatives andthe establishment of affinity groups.
To create a joint understanding of the importance of diversity,

sHero Award China for best International Women’s Day activities

equal opportunity and non-discrimination to our business success, we expanded our global learning offerings to include D&I
learning paths and a virtual D&I learning toolbox in multiple languages. We demonstrate our clear commitment through continuous internal and external communication, and we celebrate ourdiverse workforce with a range of activities each year, includingInternational Women’s Day or Diversity Day.

CADIA Certification for our commitment to diversity (Center for
Automotive Diversity, Inclusion and Advancement (North America)

36

Working at MAHLE

Diversity of our global workforce
Employees from 152 locations work together at MAHLE. Over-teams across multiple generations. As most of our employees areall, 26% of our employees are women. In the benchmark, we

between 30-50 years old, the overall average age of our global

are well within our industry average. The proportion of women in

workforce in 2022 is 41 years. We see age diversity as an advan-

direct jobs is 29% and in indirect jobs 23% globally. At MAHLE,

tage for MAHLE and are proactively fostering cross-generational

diversity not only means working together across five continents

teams. We encourage teams to co-create initiatives that com-and multiple cultures, but it also stands for collaborating in mixed

bine past learnings with new innovations for greater efficiency.

Gender diversity (direct employees)

Gender diversity (indirect employees)

0%

20%

40%

60%

80%

0%

100%

20%

40%

60%

80%

Europe35%65%Europe25%

75%

North America

34%

66%

North America

21%

79%

South America

18%

82%

Asia/Pacific

22%

78%

South America
Asia/Pacific

11%

89%

21%

Africa79%
43%

Female57%

Male

Africa31%
Female69%
Male

Age diversity (indirect employees)

Age diversity (direct employees)
18%

14%

25%

27%

Directemployees

Indirect
employees
57%

under 30 years old

100%

30-50 years oldover 50 years old59%

under 30 years old

30-50 years oldover 50 years old

New targets for the proportion of women on the

MAHLE GmbH is set at 29% by 30 June 2027 (which currently

Supervisory Board and Management Board

equals 2 out of 7 members)’.

Regarding the proportion of women on the Supervisory Boardof MAHLE GmbH, the previously set target of 20% female

Proportion of female executives worldwide

members of the committee was achieved in the reporting

Globally, 15% of all leadership positions were filled with female

period. In April 2022, the supervisory board determined theleaders at the end of 2022. On the First Executive Level below

following: ‘For the period until 30 June 2025, the target fig-

the Management Board, we accounted for 8.3% of women. On

ure for the proportion of women on the Supervisory Board

the Second Executive Level 11.2% of managers were women.

for employee representatives is set at 25%. The target figure

Both an increase compared to last year and trend of a continu-

for the proportion of women in the Management Board of theous development over the last several years.

37
Proportion of women on First and Second Executive Level*
10.2%
8.3%
6.3%

11.2%

in China and best practice health insurances in both the United
8.3%

5.3%

insurance benefits. For example, we offer an annual health checkand an employee assistance program to the entire workforce

8.4%

6.8%
6.2%

Moreover, MAHLE increasingly provides additional health care and

7.0%

States and South America.

5.3%

Eliminating pay gaps

3.2%

To ensure a good working atmosphere and fair employment con2017

2018

2019

First Executive Level

2020

2021

2022

Second Executive Level*Only figures for 2021–2022 included in PwC assurance scope

ditions, we endeavor to close any gender pay gaps and to prevent
them from the outset. As a company that is bound by labor agreements in many regions, we guarantee equal pay regardless of gender. Evaluation and remuneration systems across the organization

New targets for the proportion of women on First andare designed to be free of gender bias and based on technical

Second Executive Level

criteria. In several countries, we are required by law to work to

Our commitment to an inclusive and appreciative work environ-counter gender pay gaps. In Germany, for example, we prepare

ment was reinforced by the adoption of a new group-wide D&I

a corresponding report in accordance with the Transparency instrategy in 2021. A central element of the new D&I strategy lies

Wage Structures Act (Entgelttransparenzgesetz).

in the promotion of women in management positions. To achievea more gender balanced ratio in the company’s executive ranks,

Health care and advice

new five-year targets for women at both executive levels below the

The health and safety of all employees remained a top priority in

MAHLE Management Board were set: Our new goal is to increase

the third year of the Corona pandemic. Over the past two years,

the proportion of women to 10% on the First Executive Level anda successful hybrid model of mobile working and presence has

to 15% on the Second Executive Level globally by 30 June 2027.

been implemented in many workplaces. Over 90% of adminis-

A mix of various HR measures, such as a more targeted focus

trative employees have the opportunity and equipment to work

on female successors in case of replacements, development andfrom a home office. At Omicron Wave, too, we have been able torecruiting, female empowerment programs as well as a range ofprevent infections within the company as much as possible andflexibility offers will contribute to reaching these goals. To monitor

always ensure productivity for our customers, thanks to a clear

our efforts, we introduced a D&I Dashboard as a global manage-

testing strategy and well-considered action on the part of eachment tool for key D&I indicators which in particular focusses on theindividual. Local workplace vaccination campaigns in the autumn

achievement of our targets for female leaders.

with an Omicron-adapted COVID-19 vaccine, combined with a
flu vaccination offer, enabled MAHLE to make great strides back

Fair pay and voluntary benefits

towards normal operations. Due to the worldwide decline in new

With regard to working conditions, we have implemented different

infections, the increasing number of vaccinated people and theorganizational measures to meet the applicable statutory regula-milder course of the virus, MAHLE was able to dissolve the cen-tions and any rules connected with labor agreements at our loca-

tral Corona crisis team at the end of 2022 after very successful

tions. We strive to ensure that our employees are remunerated

work over the past three years. The need to adapt to changing

fairly and in line with market conditions. Therefore, we recently

working conditions will continue to accompany us, which is why

implemented new best practice global bonus schemes for both

we are jointly developing needs-based measures, to improve theour executives and managers. The new consistent schemes

well-being and job satisfaction of our employees. This includes

ensure that remuneration is determined by the requirements ofa wide range of on-site support and counselling services forthe transformation. In addition to the benefits provided under the

our employees. There is an increasing focus on issues such as

law and in labor agreements, we also offer notable supplementary

resilience and mental health, without neglecting regular physicalbenefits at many locations. For example, in Germany, employees

exercise. After all, everyone should look after their own health as

can benefit from an attractive, company-funded pension scheme.

part of self-care.

38

Occupational Health and Safety

Occupational
Health and Safety
According to the guiding principle formulated by our company founders, our core responsibility
is the well-being of our employees. Beginning 2022, the Corona crisis remained an ongoing
concern, but slowly became less a concern than in the years before. With the transition back to
pre-pandemic working conditions, we intensified our efforts to make workplaces safer step bystep. Therefore, we proactively tackle occupational safety across the Group and raise awareness among our employees to keep occupational risks to a minimum.

Principles of safety at work

At corporate level the Sustainability & Occupational Health, Safe-

Our global guidelines for sustainable occupational health & safety,

ty and Environment function coordinates and monitors healthenvironmental and climate protection provides a framework for aand safety at work activities worldwide. On-site Occupational

consistent occupational health and safety management through-Health, Safety and Environment (HSE) representatives, in con-out the whole Group. The following three basic Safety at Worksultation with the regional HSE managers, are responsible for im-

rules act as a simple guide for our employees:

plementing safety measures. Operational responsibility lies withthe respective location managers. Our locations also have safety

1. Safety First: Safety takes top priority. Risks are not accepted.

committees comprising members of management, employee

2. I Care—We Care: We are all responsible: for ourselves andrepresentatives (if applicable) and the location’s HSE represen-

for others.
3. Walk the Talk: Safety is not something we just talk about—it must also be reflected in our actions.

tative. Their job is to manage and monitor occupational healthand safety issues and to establish measures for continuous improvement. Employees participate in finding the root cause ofincidents, cases of non-conformity or near-misses and in estab-In the MAHLE Business Code, we pledge that we will act in ac-

lishing corrective actions. In practice, for all kinds of workplaces

cordance with the applicable standards regarding health, safety at

occupational risks must be identified, assessed and addressed

work and environmental protection. Regular training sessions andby the head of the respective department.

instructions are designed to prevent accidents and minimize risks.
All this shall help to achieve the Sustainable Development Goal
(SDGs) Good Health and Wellbeing (SDG 3).

In 2022, 103 of our locations were certified
in accordance with ISO 45001.

39

In 2022, 103 of our locations were certified in accordance with

Our activities to improve occupational health and safety can be

ISO 45001. We are continuing to work toward our goal of havinggrouped in three main safety initiatives:

more MAHLE plants certified to ISO 45001 by end of 2023.
1. Safety culture
2. Machine safety
3. HSE support and internal auditing.

ISO 45001 certified locations 2022
Europe48

As part of our Group-wide initiative on safety at work MAHLE

North America

11

initiated regional training programs to improve the leadership cul-South America

7ture and to intensify existing global and regional safety culture

Asia/Pacific37

programs. In the program, we emphasize that safety takes abso-

Total

103

lute priority at MAHLE and that managers have a special responsibility to ensure safety at the workplace. To increase awarenessa dedicated training to address managers safety responsibilities

Our objective: to reduce the accident rate
To bring about a continuous reduction in the occurrence of accidents, MAHLE works with individual target agreements in theplants. Accidents were recorded if they caused at least one dayof absence, restrictions in work activity, or transfers to otherworkplaces. After an increase of the accident rate in 2021 (4.2)
we achieved to change back to the positive trend from 2020 withan accident rate of 3.5.

has been rolled out in Germany.
We provide ongoing training to employees and work continuously to develop a safety culture that reflects our rule: ‘I Care—We
Care.’ We encourage our employees to report near misses or,where possible, eliminate potential risks.
To address technical reasons for accidents like inadequate protective devices or insufficient work instructions, MAHLE focused

Development of accident rates globally*

on regional improvements of machine acceptance and lockout-tagout procedures.

0%

1%

2%

4%

3%

5%
5.7%

2018
4.8%

2019
2020

3.7%
4.2%

2021
2022

6%

3.5%

Furthermore, a project was started to develop a global Machine
Safety Guideline. This guideline will be the international MAHLE
standard worldwide to improve machine safety and to reduce
accidents with technical causes. Parallel a training program has
been started to increase machine safety knowledge in our HSE
community.
In addition, we continued or reactivated regular safety observa-*Only figures for 2021-2022 included in PwC assurance scopetion tours (SOTs) by managers and the audit program of our HSE
experts at our sites where COVID prevention measures prevented them from being conducted on a regular basis. This helps toovercome the past two years with less effective remote audits
because of COVID restrictions.

40

Occupational Health and Safety

Awareness program ‘Embrace Safety’in Murtede
The Awareness Program ‘Embrace Safety’ of the
MAHLE plant in Murtede dedicated each month of2022 to a different ‘Safety HOTSPOT’. For each hotspot, several information was displayed in a central
outdoor safety billboard and some activities wereplanned during the month with the participation of theworkers. The safety billboard included a counter of‘days with no accidents’ and some milestones were
defined to be celebrated if reached. The plant Murtede has celebrated 100 and 200 days without accidents at work with lost days. The program included
other activities, such as training for supervisors andimplementation of monthly safety lunches with plant
top management and randomly chosen workers. Ultimately, the Murtede plant was able to reduce the number of lost time accidents from 11 in 2021 to 3 in 2022.

Dealing with incidents
We have clear policies for the proper handling of work-related

indirectly affected by the impact of an incident, we would informhazards. If an incident is reported, we classify it according to its

them at the earliest opportunity.

hazard potential. We record not only events that could endanger our employees but also those that pose a potential risk to

Serious accidents, their causes and the effectiveness of the im-our business partners. Incidents that may cause a severe hazard

plemented corrective measures are evaluated by the regional

to the well-being of our employees or production and meet de-

HSE management team together with the affected plant. After

fined internal criteria are classified as hazardous events. As suchanalyzing the accident, the corrective and preventive measuresthey must be reported via the plant management with minimum

are discussed with all parties involved, up to and including thedelay to the head of the business unit, the relevant central de-

MAHLE Board Member responsible for HSE. The results and les-partments, the members of the MAHLE Management Board andsons learnt are shared with all plants. This supports the continu-

Corporate Communications. A dedicated hazardous event alert

ous learning process that reaches beyond the limits of individual

process is established. If our business partners were directly or

locations, preventing similar incidents from happening elsewhere.

41

Sustainability in the
Supply Chain
Compliance and sustainable action as defined in our Supplier Code of Conduct
are prerequisites for our suppliers in the MAHLE supplier panel.
The MAHLE Integrity Platform allows suppliers and other parties to register
violations of our code of conduct or laws.

For us, it has always been clear that we are responsible for ourfulfill global quality standards for our products. This and maintain-

supply chain. Recent developments in customer requests re-ing competitiveness require us to source materials from global

garding conflict minerals and the new German Supply Chain Act

supply markets.

have further confirmed our understanding of this responsibility.
Therefore, the prerequisite to conduct business with MAHLE

Sustainable Purchasing

remains unchanged: full compliance with our sustainability re-

In view of the complexity of our supply chain, in recent years wequirements, from the production of materials to their impact on

took measures to harmonize our sustainability activities acrosspeople, the environment and the working conditions at supplier

the Group. For example, we created a function in strategic pur-companies.

chasing taking care of sustainability in the supply chain. Our

Supplier management

internal platform, the Purchasing Academy, provides key sustainability information to our buyers. In addition, we offer online
training sessions for our buyers to better understand and actively

Our supply chain is key for the achievement of our sustainabil-

discuss the recent challenges in regard to sustainability, environ-ity goals. Thus, it is crucial that suppliers act according to themental and human rights protection.

standards defined by MAHLE. As an example, if suppliers contracted by us violate social or environmental standards, this may

A Sustainable Purchasing Policy has been introduced to under-

hurt MAHLE in the form of supply disruptions, quality and costline our own sustainability expectations and aspiration in our pur-problems, or damage to our reputation. An active managementchasing organization. The policy provides guidance to our buyersof sustainability aspects in the supply chain reduces these risks.

and also refers to our grievance mechanism in case of violations.

Moreover, suppliers who operate sustainably often prove to bereliable and innovative partners in the long term.

The Supplier Code of Conduct
It is our goal to ensure basic human rights within our global sup-

The MAHLE supplier network

ply chains, to avoid for instance child labor, inadequate labor law

Our network comprises around 7,000 direct suppliers for our

protection, exploitation, and discrimination. MAHLE not only op-

production materials alone. The most important supplier coun-poses such violations but proactively practices and stands up fortries by volume are China, the United States and Germany. We

fairness and responsibility. These values not merely determine

procure raw materials, semi-finished products, and prefabricated

how we deal with each other, and work together, but also apply

items, ranging from simple plastic parts to complex mecha-

to our relationships with customers, suppliers and other businesstronic assemblies. In the automotive industry it is important topartners.

42

Sustainability in the Supply Chain

With our Supplier Code of Conduct7, we expect our suppliers to

Supplier registration, assessment and approval

act in accordance with ethical requirements as laid out in statu-

We focus on sustainability aspects early on during the assess-

tory provisions and ethical principles.

ment of our suppliers. Regulatory requirements as the German
Supply Chain Act confirm that due diligence is crucial to iden-

The Supplier Code of Conduct was updated in 2022 to com-

tify sustainability risks. When selecting suppliers, one factor we

ply with increased expectations and regulatory demands like theconsider is their compliance with certified quality and environ-

German Supply Chain Act. The Supply Chain Act aims to protect

mental management standards, which are assessed as a parthuman rights, but also covers environmental protection, whereof the initial audits. The initial audit must be passed successfully

environmental risks could give rise to human rights violations.

to be considered in our supplier panel. We aim to introduce uniform supplier scorecards to facilitate the assessment of suppli-

MAHLE suppliers have to accept our Supplier Code of Conduct

ers based on quantitative key performance indicators (KPIs). In

and are expected to enforce our guidelines in their own supply

addition to social factors, the criteria will include environmental

chain. It contains requirements in the following areas:

topics, hazardous substances and carbon footprints.

nn

Human rights: prohibition of forced or child labor as well as

When registering new suppliers, we request to provide their valid

slavery or human trafficking, protection of local communities

certifications via the supplier portal. These may include among

and indigenous peoples, promotion of equal opportunities,

others IATF 16949, ISO 9001 and ISO 14001. We also assess

protection from discrimination, freedom of association

them regularly after they are commissioned and require certifi-

Working conditions: working hours and holiday, occupationalcates to be renewed on a timely basis.

health and safetynProhibition of corruption and bribery

Risk management in the supply chainn

Fair and free competition

We use a software system that allows us to monitor risks thatnData protection and confidentiality

may arise in the supply chain. This is done utilizing more than 75nEnvironmental and climate protection: Reduction of green-

indicators in different areas, ranging from key financial figures tohouse gas emissions, material compliance (e.g., REACH,

location indicators and figures relating to environmental or so-

RoHS)cial aspects. The continuous monitoring means our purchasersn

Exclusion of conflict minerals use

receive an early warning of any increased risk, enabling us ton

Whistle-blower platform for reporting violations against these

promptly respond with the appropriate countermeasures. The

requirements.

risk management tool currently monitors more than 80% of our
expenditure in this area.

Furthermore, MAHLE has adjusted the existing web-based whistle-blower system (Integrity Platform) so that any partner in the

Additionally, we carry out sustainability assessments based on

supply chain or any other stakeholder can report violations of

our yearly risk analysis. Sustainability rating plays an essential

these requirements to MAHLE.

role in the definition of our supplier panel e.g., when approving
new suppliers or during the contract awarding process. In addi-

We provide supplementary information on our procurement andtion to the supplier’s sustainability rating (including human rights

supplier management in the MAHLE Supplier Guideline. It in-and environmental aspects), financial stability and other gover-cludes additional instructions for suppliers in selected businessnance criteria are also considered in our supplier nominations.

areas and regions that depend on legal regulations or specificcustomer requirements. For example, suppliers to our compa-

In the event of a clear violation of our code of conduct, we urge

nies in the USA are required to report on the fulfilment of diversity

the supplier to remedy the problem. Ultimately, we would remove

criteria and the inclusion of minorities in their workforce.

the supplier from our supplier panel. We report serious compli-

7

www.mahle.com/en/purchasing/general-guidelines-for-suppliers/

43
ance violations to our Compliance Office for appropriate action.

example the origin from high-risk regions, incomplete supplier

At the same time, both our suppliers and their suppliers can reg-

responses or non-certified smelters.

ister violations of our code of conduct using the MAHLE Integrity
Platform.

The annual CMRT campaigns have been expanded and now include cobalt and mica, a group of 37 types of silicate minerals, toCurrent initiatives
MAHLE is an active member of the Automotive Industry Dialogue of the VDA and joined the Sustainability in the Supply
Chain working group to ensure compliance with statutory provisions and ethical, social, and environmental principles in theindustry.
With our membership in the Responsible Supply Chain Initiative(RSCI), we are taking another step towards improving sustainability in the supply chain. The initiative enables us to have amuch closer insight in sustainability topics by conducting social
on-site audits on behalf of its members.
With our participation in the ‘Easy on the Planet’ program of the
Lyreco Advantage company, MAHLE was able to increase thesustainable purchase of office materials significantly and therefore contributed to the planting of new trees.
Conflict minerals regulations
In 2022, we formalized our ambition regarding conflict minerals.
The newly implemented MAHLE Conflict Raw Materials Guideline
describes MAHLE’s ambition and expectations to neither directly
nor indirectly procure raw materials or minerals that are mined
under conditions in which armed conflicts and human rights violations take place. The guideline is published with other purchasing documents and is now integral part of our purchasing
conditions.
In addition to that we improve our internal processes to increasetransparency and the quality of supplier responses by specifying our expectations. Our process is based on the OECD Due
Diligence Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High-Risk Areas. All affected suppliers must provide an official Conflict Mineral Reporting Template (CMRT) and Extended Minerals Report Template (EMRT)
to MAHLE. In cases of non-compliance with our due diligence
red flags, an escalation process will be started. Red flags are formeet increasing external requirements.

44

Human Rights

Human Rights
As a foundation-owned company, MAHLE has always had a sense forsocial responsibility. This is reflected by the strategic topic Human Rights
connecting different initiatives throughout our business activities.

At a glancenn

the rejection of forced and child labor, working conditions andProtection of human rights are a cross-cutting responsi-

cooperation with employees and their representation bodies inbility for MAHLE.

accordance with the relevant International Labor Organization

MAHLE has released ‘Principles of Social Responsibility’.

(ILO) conventions. These principles must be observed within the
MAHLE Group and in MAHLE’s supply chain.

We believe that upholding human rights, combating child,and forced labor and respecting employees’ freedom of asso-

In addition, the MAHLE Business Code imposes an obligation on

ciation are self-evident principles. At MAHLE, we have set up

the company and its employees to comply with all the laws anda cross-functional working group on human rights including

regulations applicable in their respective working environments,

representatives from HR, Purchasing, Sustainability & HSE,

including regulations designed to prevent forced and child labor.

Compliance and Risk Management. The working group meetsAny violations will be subject to disciplinary action under the

bi-monthly and initiates actions to perform human rights due dil-applicable labor law. Policies are in place to identify risks both

igence. This contributes to the Sustainable Development Goal

during the recruitment process and for the duration of the em-

Decent Work and Economic Growth (SDG 8).

ployment relationship. A candidate’s age and the availability ofimportant documents, such as a residence or work permit, arechecked before employment commences.
MAHLE also has an employee representation structure. Employee representatives—with whom MAHLE maintains a constructive relationship—are also involved in ensuring human rights areupheld. Employees who witness violations against human rights

In 2022, focus of the working group was to prepare for the im-have the option to report these violations without risking person-

plementation of the requirements of the Supply Chain Act which

al disadvantage via our internal reporting channels, be that via

came into force on January 01, 2023. Actions in 2023 will com-their supervisors, the Corporate or Regional Compliance Office,prise a risk assessment of MAHLE’s own operations in terms

the external ombudsperson, or by using the web-based Integrityof human rights, extending MAHLE’s Integrity Platform and

Platform whistleblower system.

training of employees and suppliers. Oversight of our humanrights strategy and actions remains with the Steering Committee Sustainability.
Due to the high importance of social responsibility for MAHLE
the ‘Principles of Social Responsibility in the MAHLE Group’
were introduced in December 2022. The principles provide formandatory high standards regarding human rights including

45

Responsible Corporate
Governance
The MAHLE risk
management system

The relevant risks and opportunities identified in connection withthe environmental aspects include mainly new regulatory emission reduction targets and the increasing environmental awareness in the markets as especially the automotive industry is fac-

Our risk management system covers economic, environmental

ing a transformation due to stricter emissions regulations andand social aspects. In order to identify opportunities and risks

electrification:at an early stage and address them proactively, our experts inthe corporate functions and business areas continuously assessn

MAHLE, with a large portfolio of emission-relevant segments

short-, medium- and long-term market trends (0-1 year; 1-5 years;

like combustion engine components, may experience reduc-5-15 years). For example, we make use of scenario analyses

tions in demand for these components, resulting in decreasing

drawn up by our Corporate Planning department to model

sales within the affected products. We see opportunities in thechanges in markets and regulatory frameworks.

efficiency increase of our components and expansion of ourportfolio of electric drives and auxiliary components.

The Risk Management Committee, in which members of thenFurthermore as MAHLE maintains production, administration

MAHLE Management Board and the Group Risk Manager are

and distribution sites in various countries worldwide, MAHLE

represented, is responsible for managing and monitoring the risk

faces a variety of potential environmental risks. We regularly

management system. This committee defines the top risks formonitor these risks (e.g. fire and other natural hazard risks) andthe company and prioritizes them according to potential finan-

continuously reduce these by following a long-term strategy.

cial impact and likelihood of occurrence based on the evaluation

This helps us avoid material damage to our facilities anddone by risk experts. For each risk identified, the committee ap-

consequential damage such as air and water pollution, as well

points one or more risk owners whose task is to initiate targeted

as economically negative impacts on our supply chains.

measures to reduce the potential impact of the risk.
The Group Risk Manager is responsible for the practical implementation of the risk management system and summarizes the

Schematic diagram of risk management at MAHLE

ments in the Annual Group Risk Management Report. This reportmust be approved by the complete MAHLE Management Board.
In case a hazard occurs despite risk prevention, we have arranged an economically prudent degree of cover by means ofCorporate Audit

top risks, including countermeasures and risk controlling instruSupervisory Board
Management Board

Risk Management Committee (RMC)

insurance policies for the financial consequences of production
losses and MAHLE business interruptions caused by e.g., byfires and natural disasters. We ensure that specific liability situations such as environmental issues are also covered.

Risk experts
for identificationand evaluation

Corporaterisk
management

Risk owners
for risk
control

46

Responsible Corporate GovernanceOur compliancemanagement system

the Human Resources (HR) department deals with compliancerisks relating to social concerns.
MAHLE Business CodeThe existing compliance structure is continuously optimized andIn our business activities, we are committed to comply with ethicaladjusted on the basis of risk by the MAHLE compliance organ-

standards and laws. This is based on the MAHLE Business Code,ization.

which defines the legal and ethical framework for all MAHLE employees, including the members of the MAHLE Management

Responsible business behavior means complying with laws andBoard, members of the MAHLE Management Committee and ex-internal rules as well as ensuring fair competition. Therefore,

ecutives. For affiliated companies located outside Germany, thecompliance has always been an important element of our cor-

MAHLE Business Code describes the minimum standards, which

porate governance. At Group level, we ensure that our conduct

should then be supplemented by local requirements and specificand actions adhere to laws and internal rules by means of thecharacteristics. At joint ventures and companies in which MAHLE

MAHLE compliance structure. As shown in the graphic below,

does not have a majority holding, but rather a holding of at least

this includes the MAHLE Business Code as a basic code of con-25 percent and not more than 50 percent, appropriate measuresduct for all employees worldwide as well as our compliance or-are taken to ensure compliance with the objectives of the MAHLE

ganization, preventive measures and training concept. We takeBusiness Code.

various steps to safeguard the effectiveness and sustainabilityof our compliance structure, including documenting our com-

The MAHLE Business Code was updated in November 2022

pliance activities and conducting compliance audits as well as

due to a change of the MAHLE Group’s management board andregular web-based compliance learning programs.

environmental issues. New employees receive a copy with theirorientation documents. In addition, members of the MAHLE Management Board, members of the MAHLE Management Committee and executives are required to make a written commitment

Ensuring
Sustainability

Compliance
Organization

to comply with the contents of the MAHLE Business Code andensure that it is observed within their scope of responsibility.

Training

MAHLE
Compliance
Structure

Program

MAHLE
Business
Code

Mesasures forPrevention

Compliance organization
The MAHLE Group Compliance Organization Guideline definesand designates the responsibilities of the compliance organizationand describes its tasks and reporting lines in the event of compliance violations.

Our decentralized compliance approach means that all organi-

At Group level, the compliance organization consists of thezational units, divisions and departments are responsible for the

MAHLE Management Board, the Compliance Steering Com-

processes and compliance risks applicable in their area whichmittee, and the Corporate Compliance Office. Further Regional

are aimed at upholding laws and internal rules as per the proce-

Compliance Committees and Regional Compliance Offices have

dure ‘Legal Compliance’. There are also compliance risk areas

also been established at a regional level.

for which central responsibility is assumed. These include, forexample, antitrust law and prevention of corruption, which are

The Compliance Steering Committee consists of members of the

managed centrally by the Group-wide MAHLE compliance or-

MAHLE Management Board and MAHLE Management Commit-

ganization, or data protection which is managed centrally by thetee as well as executives from Human Resources, Legal and In-

department Corporate Data Privacy. Furthermore, the corporate

ternal Audit. It is responsible for the content and strategic further

function Corporate Sustainability, Health, Safety & Environment

development of the compliance structure and reports directly tois responsible for handling environmental compliance risks, while

the MAHLE Management Board.

47
The Corporate Compliance Office implements preventive meas-

Employees wishing to report a potential violation of complianceures such as trainings and communication activities relating torules can approach the Corporate Compliance Office or the Re-

antitrust law and corruption prevention. Additionally, it handles

gional Compliance Office responsible for them.

reports of compliance violations, evaluates them, and passes
them on to the appropriate bodies. The Corporate Compliance

In 2022, 86 compliance violations were reported worldwide. The

Office is attached to the Corporate Legal department. For the

Corporate Compliance Office classifies the received reports inplanning of internal compliance audits, it consults with the Cor-

categories according to the MAHLE Group Compliance Organ-

porate Internal Audit department, which then undertakes theization Guideline. 10 serious or significant reports were inves-compliance audits. The Corporate Compliance Office is support-

tigated by Corporate Internal Audit, 70 were forwarded to the

ed by the Regional Compliance Offices, which are available torespective department, 3 were not taken account of due to lacksupport employees in their region with compliance queries andof information and 3 were in the pre-assessment.

reports of violations and implements any necessary complianceIn the event of serious compliance violations or an increased

measures at a local level.

need for confidentiality, employees can contact the external omThe Regional Compliance Offices also preside over the Region-

budspersons responsible for their region. Alternatively, the web-al Compliance Committees. They are primarily responsible forbased whistleblower system Integrity Platform can be used—

analyzing local compliance risks, reporting on local complianceanonymously, if desired. The Integrity Platform is available to allissues and adapting the guidelines to suit local characteristics.

employees and to external parties on the MAHLE website 8.

Management of compliance violations

The MAHLE Management Board receives an annual compliance

The Corporate Compliance Office must be involved in the casereport which informs them about current developments of theof any incidents that may have a significant impact on the whole

MAHLE compliance structure and activities of the MAHLE com-

Group. It assesses compliance incidents in accordance withpliance organization. Corporate Internal Audit also communi-

the provisions of the MAHLE Group Compliance Organization

cates the key results of the audits undertaken.

Guideline. Any serious and significant violations are immediately
reported by the Corporate Compliance Office to the Compliance

The compliance management system is reviewed regularly andSteering Committee. The responsible members of the Compli-

developed further if necessary.

ance Steering Committee decide whether the Corporate Internal
Audit department should be involved for investigation purposes.

The MAHLE compliance organization

Supervisor

MAHLE
Informant

Regional
Compliance
OfficeExternal
Ombudsperson

External
Informant

8

Corporate
Compliance
OfficeIntegrity
Platform

EQS Integrity Line (https://mahle.integrityplatform.org)

Compliance
Steering
Committee

MAHLE
Management
Board

MAHLE
Supervisory
Board

48

Responsible Corporate GovernancePrevention of corruption
and antitrust law

the outset, we organize regular web-based compliance trainings,
covering the topics of antitrust law and prevention of corruption.
The trainings are mandatory for all members of the MAHLE Management Board and MAHLE Management Committee as well

The compliance risk areas of corruption and antitrust law are

as for executives and employees in risk-exposed areas, such as

managed centrally by the Group-wide MAHLE compliance or-purchasing and sales. In addition, employees have the option ofganization as these risk areas are not assigned to particular or-

voluntarily following the training programs. Refresher trainings forganizational units.

the target groups take place every two years. Due to the implementation of our new E-Learning system ‘Success Factors’ thePrevention of corruption

total amount of nominated employees has been split in two waves:

Prevention of corruption is an important topic at MAHLE. The
purpose of our Guide on Prevention of Corruption and related

The first wave was nominated at the end of Q3 2022 in our current

corruption trainings is to give employees guidance and support

system ‘Learning@MAHLE’, which partly contained Europe/South

with respect to the most important rules relating to corruption

Africa9 and Asia10. The web-based training was rolled out to 398

prevention.

employees, with 88% passing by the end of 2022.

Further provisions with respect to the approval of processes and/The second wave took place in Q1 2023 via Success Factors11.

or business transactions can be found in our Approval and Signature Guideline. It also defines the dual control principle andCompliance@MAHLE

which processes/ business transactions need to be approved by

To raise awareness, we implemented a web-based ‘compliance@

which management level. It is therefore another tool that helps us

MAHLE’ training. The training is compulsory for all employees

to avoid corruption.

worldwide with a MAHLE email account, irrespective of seniority.
The content of the training includes general aspects of compli-

We refer our business partners to our strict anticorruption policy,

ance as well as MAHLE’s specific compliance training. Moreover,which is part of the Supplier Code of Conduct, with which all ourit provides training on compliance in a wide variety of matters,

suppliers have to comply.

including occupational health, safety and environmental protection, anti-corruption, antitrust, data protection and export con-

Antitrust law

trol. The goal is to show how to avoid compliance violations and

It is particularly important to follow the antitrust regulations,thus avert the risk of negative consequences. In 2022, 25,741

which safeguard and ensure free and fair competition worldwide.

employees participated.

We work proactively to prevent potential violations—it is in our
RegionTotal (nominated)

Europe/South
Africa14,87891%

North America

4,211

90%

South America

1,941

91%

Training on prevention of corruption and antitrust law

Asia/Pacific

7,345

91%

To prevent violations of laws and internal company rules from

Total

28,37590%

own interests to do so. Our Guide on Antitrust Law and related
antitrust trainings provide detailed instructions on how to behave
in areas sensitive to antitrust law—such as in conduct toward
competitors, customers and suppliers, in association meetingsand in the context of joint venture activities.

9

Czech Republic, France, Germany, Hungary, Italy, Portugal, Russia, Slovakia, South Africa, Turkey, United Kingdom

10

India, Japan, Korea, Singapore, Thailand

11

Argentina, Austria, Brazil, Canada, Mexico, Poland, Romania, Slovenia, Spain, USA

Coverage (training completed)49

Data protection

Protection Coordinators, who act as the first point of contact
in the country respective on site. These specially trained coordinators are the link between the employees and the Corporate

We commit ourselves to strict compliance with legal require-

Data Privacy.

ments for the protection of the right to informational self-determination. As we are a globally active company with head-

We implemented a uniform Group-wide Data Protection Man-

quarters in Germany, the European General Data Protection

agement System in 2020. The rollout within the European Un-

Regulation and other local data privacy laws (e.g., Federal Data

ion was finalized in 2021 and the global rollout on a risk-based

Protection Act) apply to us. In addition, we implement neces-approach started in 2022. Additionally, a mandatory web-basedsary measures for compliance with non-European, international

training for data protection was rolled out worldwide.

data protection laws and regulations.
In 2022, audits were conducted supported by a risk-based apOur data privacy organization

proach to ensure a proper implementation of the Data Protec-

The Corporate Data Privacy department consists of the de-tion System.

partment management and a team of experienced data privacy
specialists. An external Corporate Data Protection Officer re-Any violations of the applicable data privacy guidelines must

ports directly to our MAHLE Group Management. This ensures

be informed to the Corporate Data Privacy department, which

separation between the independently acting Corporate Data

carefully investigates the situation. If the suspicion of a violation

Protection Officer and Corporate Data Privacy Management.

of data privacy or a data privacy breach is subject to notifica-

Our data protection organization currently comprises 30 Na-

tion, the Corporate Data Protection Officer immediately notifies

tional Data Protection coordinators worldwide and 123 Data

the incident to the respective data protection authority.

50

Sustainable Innovations

Sustainable Innovations
As a forward-thinking development partner to the automotive industry, the MAHLE Group offers its
customers complete systems from a range of cutting-edge products. For us, sustainability begins
in the research and development phase. With our innovative solutions and our versatile productportfolio, we are making our contribution to environmental and climate protection. Our innovative
strength has been the foundation of our success for 100 years. Even in difficult times, we maintainour level of investment in research and development.

Sustainable mobility
At a glancen

MAHLE expects a significant increase of electric andhybrid vehicles in the futuren

MAHLE focuses on electric, thermal and efficient internal
combustion engine solutions.

There is no question that the mobility sector has to make its
contribution to climate protection, and it is our goal to becomecarbon neutral by 2040. However, the dynamics in our sector
have probably never been as high and the overall global pictureof powertrain development as complex as it is today. This applies
to passenger cars, but also to the commercial vehicle sector.
MAHLE is expecting a significant increase in the variety of drives
both in the passenger cars and in the commercial vehicles.
According to our market development expectations, the glob-

System expertise is an essential key to success here. Automotive
suppliers are striving for end-to-end system expertise with integrated solutions, which can reduce both complexity and costs.
Automobile manufacturers are designing large cross-model vehicle platforms and need strong powertrain suppliers who can takeon a larger portion of the value chain. In emerging markets, themarket for combustion engine vehicles is expected to continue togrow, especially in India and South America. Hydrogen and alternative fuels are an important supplement when it comes to decarbonizing applications like commercial vehicles or agricultural andconstruction machinery. Based on the market implications andour vision ‘We Share Future Mobility’ and our mission ‘Efficiency
in Motion’, MAHLE is working on the climate-neutral mobility of
tomorrow with the aim of further expanding its position as a leading systems supplier in three strategic areas that contribute to the
Sustainable Development Goals (SDGs) 'Industry Innovation andInfrastructure' (SDG 9) and 'Responsible Production and Consumption' (SDG12).

al share of battery electric vehicles, fuel cell and hybrid engine
solutions is set to increase significantly. In passenger cars thejust over 10% market share of today could rise to around 70% in
2035 while until then around 30 percent of all commercial vehicles worldwide could be purely electric with batteries or fuel cells– in each case based on newly produced vehicles.

In the area of electrification, MAHLE focuses on innovations in
the field of electric drive, components for fuel cells and batteries,

The outlook leads to the following market implications for theas well as electric charging and associated solutions that enablecorporate strategy MAHLE 2030+.

e-mobility with maximum efficiency through cutting-edge technology. In this respect, MAHLE is precisely addressing those top-

The future of mobility is electric or hybrid. New vehicles will large-

ics that are currently still posing challenges for our customers:

ly be powered by electric drives, regardless of the energy source.

Cruising range, performance, and fast-charging capability. The

51
areas of application are vehicles of all kinds—from e-bikes andoil cooling system. The extremely compact design results in mate-e-scooters to passenger cars and delivery vans to heavy-duty

rial cost and weight advantages in addition to performance.

commercial vehicles, off-road and industrial applications.
The second strategic core area is Thermal Management—thevehicle’s heating and cooling. The aim here is to achieve energy efficiency and cabin comfort for sustainable mobility. MAHLE
uses its in-depth expertise in the areas of powertrain, electronics,
battery and in the passenger compartment to offer highly efficientand at the same time cost-optimized system architectures for all
drive types and vehicle classes via a modular system approach.
In addition, MAHLE will continue to be an important competitivemarket player in combustion engine drives with superior products, lean cost structures, and long-standing relationships built
on customer trust. If there is demand for combustion engines on
the international markets, we can offer components for highly
efficient engines that can also run-on e-fuels, hydrogen, or othersustainable fuels. We advocate competition for innovations andtechnologies to make the transport of people and goods globallyclimate neutral.
The entire automotive industry is changing, and the pace of technological transformation has increased. This applies above all tothe advance of electromobility: Many of our customers are adjusting their plans accordingly. So do we. We support the transport sector's contribution to climate protection with a technology-neutral view of customers and markets and have developed
technologies for all forms of drivetrains.

Sustainable innovation
SCT E-Motor
With the SCT e-motor (Superior Continuous Torque), MAHLE
2022 presented a motor that can work continually with high performance and, per customer demand, can also be built without theuse of rare earths. The new development is suitable for passenger
cars, commercial vehicles, construction machinery and tractors.
This makes MAHLE a full-range supplier in the field of electric
drives and covers all needs from e-scooters to heavy commercial
vehicles, off-road and industrial applications. This resilience of the
new SCT electric motor is achieved using an innovative integrated

Thermal Management
Thermal Management – heating and cooling in the vehicle – is ofparticular and overarching importance in the development of efficient and CO2e-neutral drives. Its complexity and the demands
on its performance increase significantly in battery electric drives
and fuel cell systems. Electric motors, batteries, power electronics, inverters, transmissions — in electric vehicles, the number ofcomponents that require cooling is quite high. Accordingly, we
also have a relatively high amount of heat here that the coolingsystem has to absorb. And heat is energy — we have to use
it carefully in e-vehicles, otherwise we immediately lose cruising
range. That is why we collect it where it is created and bring it towhere it is needed.

52

Sustainable Innovations

In addition to the demand for efficiency, there is also the chal-commercial vehicle sector can be covered - with high efficiency

lenge with e-vehicles that components such as the battery

and at optimized costs.

require a very narrow temperature window. Otherwise, theperformance and service life will suffer — or there will even be

Clean maritime solutions

immediate material damage. Incidentally, this also applies to the

At the SMM trade fair for the maritime industry in Hamburg,

electric motor and the power electronics.

MAHLE 2022 presented Thermal Management solutions for thefuel cell periphery of electrically powered watercraft of all class-

As a result, the classic cooling system is no longer sufficient.

es. With these products MAHLE enables the use of hydrogen

Coupling the battery with the refrigerant circuit of the air condi-

in the maritime sector, which is one technology that can cut

tioning system is necessary. With the fuel cell vehicle, things get

maritime emissions – especially if hydrogen is produced in aeven more intense and Thermal Management is also becoming

climate neutral manner.

a key technology. With a view to the increasing diversificationin the drive mix in commercial vehicles, MAHLE presented a

Hydrogen Combustion

modular structure of the Thermal Management system at theIn addition to the fuel cell, the use of hydrogen as a combustion

IAA. This means that the ideal system architecture can be de-fuel has the potential to make many heavy-duty and off-high-veloped for every application and every vehicle and the large

way applications CO2e-neutral particularly quickly. Hydrogen en-

number of individual driving profiles and vehicle classes in thegines are ideal for high load cycles with sudden load steps and53

Quality and productresponsibility
Our success is based on quality. Innovative, defect-free, and reliable products and systems are at the heart of this. That is why
quality targets are core elements of our annual business plan. We
define them from the top down, flesh them out from the bottom
up, and consolidate them across the operational business areas.
In addition, a Group-wide quality management system has beenused in all our business processes for many years now. This system is based on ISO 9001 and is coordinated and controlled by
the Corporate Quality department. Responsible persons at theare insensitive to heat, contamination, and vibration. At the IAA,

sites ensure operational implementation there. All our develop-

MAHLE presented a new power cell unit for the first time – ament locations are certified according to the ISO 9001 standard.

system consisting of pistons, piston rings, connecting rods, pins

All sites that manufacture vehicle components are certified to theand liners – as well as a high-pressure impactor for scavenging

IATF 16949 standard. This was issued by the International Auto-the crankcase. This means that hydrogen can be used highly ef-

motive Task Force (IATF) and is based on ISO 9001.

ficiently and safely in combustion engines with a long service life.
Climate-friendly micromobility
At the MAHLE location in Šempeter pri Gorici, Slovenia, production of the new X20 traction motor for e-bikes started successfully in 2022. The first deliveries to customers have already takenplace. The new product was developed by MAHLE Smartbike
Systems in Palencia/Spain and contributes to climate-friendly

All our development locations are certified
according to the ISO 9001 standard. All sitesthat manufacture vehicle components
are certified to the IATF 16949 standard.

micro mobility by bringing an extremely performant and lightweight e-bike drive into the market. Its weight and performance
are an incentive for the end user to switch from cars to e-bikes

Malfunctions can have serious consequences in the case ofwhenever possible.

safety-related components for automobiles. We therefore assume responsibility for the safety of our products throughout
their planned life cycle by defining their function description forcustomers. This is something we take into consideration rightfrom the product development stage. If, despite all these precautions, a product recall becomes necessary, MAHLE works inclose coordination with its customers and the relevant supervisory authorities. An ad hoc reporting chain is used to inform thebusiness unit’s leadership and the MAHLE Management Board.
Customer complaints in the automotive segment fell by 7% in
2022 compared with the previous year. We were able to further reduce the number of faulty delivered parts in the year under review.
Furthermore, the quality of our products was again acknowledgedby more than 80 customers in the 2022 business year.

54

Sustainable Finance

Sustainable Finance
Finance is crucial for ambitious sustainability targets like the Paris Agreement, thetransition to a circular economy and the transformation of the transportation sector.
The finance sector changes rapidly and acknowledges risks and opportunities more
and more in its investment decisions. At the same time, new requirements like the EU
taxonomy delegated acts impose additional reporting requirements. MAHLE aims tobecome a proactive participant in the evolving market segment of sustainable finance.

At a glancenn

In addition to that, MAHLE started to prepare for the EU taxon-

MAHLE started to develop a Sustainable Finance Frame-

omy regulation which will oblige the company to report on thework to lay a foundation for participation in the evolving

share of turnover, capital and operational expenditure linked tosustainable finance market.

sustainable economic activities from 2025 onwards. Apart from

MAHLE adapts financial reporting processes to be future

intensive monitoring of the political process and participation in

proof for European Taxonomy regulations.

industry working groups, MAHLE focuses to adapt internal reporting processes to fully meet the sustainable finance require-

The most recent topic of MAHLE’s sustainability strategy is Sus-

ment of internal and external stakeholders as well as the EU tax-

tainable Finance. MAHLE launched a project in 2022 involving

onomy.

various departments to develop a sustainable finance framework. The framework is designed to comply with the guidelinesof the International Capital Market Association (ICMA) and theLoan Market Association (LMA).
MAHLE plans to invest in projects that have a positive impact on
the environment and thus, help to achieve the goals of the Paris
Agreement as well as the UN Sustainable Development Goals.
MAHLE aims to adapt its financing strategy suitable to its mission
by the issuance of sustainable finance instruments. In addition,
the framework enables MAHLE to diversify its investor base andbroaden it with existing investors. The framework shows MAHLE’s ambition to issue sustainable finance instruments which:nfinance and/or refinance projects that comply with MAHLE’score businesses and sustainability strategy, andnare linked to the achievement of specific sustainability goals.

55

The MAHLE FOUNDATIONThis nonprofit foundation holds 99.9 percent of the shares in the
MAHLE Group but has no voting rights, as a matter of principle. The
foundation uses the annual dividend from the Group’s net income
for the year to support social projects. This arrangement guarantees
the Group’s independence and ensures that the majority of the profit
generated can be reinvested in the company.

In line with the objectives stated in its Articles of Association, thefoundation is particularly involved in health and nursing care,
agriculture and food, education and upbringing, as well as
art and culture. It provides start-up financing but also supports
a number of more long-term projects. One of its core projects
has always been the construction and ongoing sponsorship of
the Filderklinik (Filder hospital) in Filderstadt-Bonlanden near
Stuttgart/Germany.

The MAHLE FOUNDATION also supports
around 150 projects and initiatives
throughout the world every year. The
initiatives are described in detail in the
MAHLE FOUNDATION’s Annual Report.

mahle-stiftung.de/en/downloads

56

PwC Auditor’s ReportPwC Auditor’s Report
Independent Practitioner’s Report on a Limited
Assurance Engagement on Sustainability
Information

Our audit firm applies the national legal requirements and professional standards – in particular the Professional Code for German
Public Auditors and German Chartered Auditors (“Berufssatzung
für Wirtschaftsprüfer und vereidigte Buchprüfer“: “BS WP/vBP”)

To MAHLE GmbH, Stuttgart

as well as the Standard on Quality Control 1 published by theInstitut der Wirtschaftsprüfer (Institute of Public Auditors in Ger-We have performed a limited assurance engagement on themany; IDW): Requirements to quality control for audit firms (IDW

2022 Sustainability Report of MAHLE GmbH, Stuttgart (hereinaf-

Qualitätssicherungsstandard 1: Anforderungen an die Qualitäts-

ter the “Company”) for the period from 1 January to 31 Decem-

sicherung in der Wirtschaftsprüferpraxis - IDW QS 1) – and ac-

ber 2022 (hereinafter the “Report”).

cordingly maintains a comprehensive system of quality control
including documented policies and procedures regarding com-

Not subject to our assurance engagement are the external sourc-

pliance with ethical requirements, professional standards andes of documentation or expert opinions mentioned in the Report.

applicable legal and regulatory requirements.

Responsibility of the Executive Directors

Responsibility of the Assurance Practitioner

The executive directors of the Company are responsible for the

Our responsibility is to express a conclusion with limited assur-

preparation of the Report in accordance with the principles stat-ance on the Report based on our assurance engagement.

ed in the Sustainability Reporting Standards of the Global Reporting Initiative (hereinafter the “GRI-Criteria”).

We conducted our assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE) 3000

This responsibility includes the selection and application of ap-(Revised): Assurance Engagements other than Audits or Re-

propriate sustainability reporting methods and making assump-views of Historical Financial Information, issued by the IAASB.

tions and estimates about individual sustainability disclosures ofThis Standard requires that we plan and perform the assurance

the Company that are reasonable in the circumstances. Further-engagement to obtain limited assurance about whether any mat-more, the executive directors are responsible for such internalters have come to our attention that cause us to believe that thecontrols as the executive directors consider necessary to enable

Report of the Company, other than the external sources of doc-

the preparation of a Report that is free from material misstate-umentation or expert opinions mentioned in the Report, are notment whether due to fraud or error.

prepared, in all material respects, in accordance with the relevant
GRI-Criteria.

Independence and Quality Control of the Audit Firm
In a limited assurance engagement the procedures performed
We have complied with the German professional provisions re-are less extensive than in a reasonable assurance engagement,

garding independence as well as other ethical requirements.

and accordingly a substantially lower level of assurance is obtained. The selection of the assurance procedures is subject tothe professional judgement of the assurance practitioner.

57

In the course of our assurance engagement, we have, amongst

Restriction of Useother things, performed the following assurance procedures andother activities:

We draw attention to the fact that the assurance engagement
was conducted for the Company’s purposes and that the report

n

n

n

Gain an understanding of the structure of the sustainability

is intended solely to inform the Company about the result of theorganization and the stakeholder engagement

assurance engagement. Consequently, it may not be suitable forInquiries of personnel involved in the preparation of the

any other purpose than the aforementioned. Accordingly, the re-Report regarding the preparation process, the internal control

port is not intended to be used by third parties for making (finan-system relating to this process and selected disclosures incial) decisions based on it. Our responsibility is to the Company.

the Report

We do not accept any responsibility to third parties. Our assur-

Identification of the likely risks of material misstatement of theance opinion is not modified in this respect.

Report under consideration of the GRI-CriterianInspection of processes for collecting, controlling,

Frankfurt, 17 April 2023

analyzing and aggregating selected data at specific sites ofPricewaterhouseCoopers GmbH

the Company on a sample basis, incl.

Wirtschaftsprüfungsgesellschaft– Physical site visit at Timișoara, Romania– Virtual site visits at Šempeter pri Gorici, Slovenia; Ramos

Nicolette Behncke

Arizpe, Mexico; Nanjing, China; Mooka, Japan andDayton, USAnAnalytical procedures on selected disclosures in the ReportnReconciliation of selected disclosures with the corresponding
data in the consolidated financial statements and the groupmanagement reportnnEvaluation of the presentation of the Report
Evaluation of CO2 compensation certificates exclusively withregard to their existence, but not with regard to their impact.

Assurance Opinion
Based on the assurance procedures performed and evidence
obtained, nothing has come to our attention that causes us tobelieve that the Report of the Company for the period from 1
January to 31 December 2022 are not prepared, in all material
respects, in accordance with the relevant GRI-Criteria.

Wirtschaftsprüferin[German public auditor]

ppa. Thomas Groth58

SDG Index

SDG Index
UN Sustainable Development Goals relevant to the MAHLE Group
SDG

Goals

2022 Status

Certify all production plants in accordance with
ISO 45001 by 2023
n Further reduce the DART accident rate, goal for2022: 2.66 accidents/million working hours.

n

20% representation of women on Supervisory
Board for employee representatives
n 5% for German MAHLE companies for First Executive Level, 10% representation for Second Executive
Level by 2022

n

n

n

n

Identify locations with water risksn

ISO 45001: 103 locations certified
DART accident rate 2022: 3.5*

Target of 20% representation of women on Supervisory Boardfor employess representatives met
n 8% on First Executive Level andn 11% on Second Executive Level were reached in 2022.
n New targets for proportion of women were set:
Until 2025 25% in the Supervisory Board
Until 2027 29% in the Management Board until 2027
Until 2027 10% on First Executive Level and 15% on Second
Executive Leveln Equal pay guaranteen Global Diversity & Inclusion CommitmentnnEight locations with water risks identified
Improved water reporting to CDP Water, Rating B –

Page
38-40

35-37

26-27

Operate our own PV systems
Increase energy efficiency by 2% every yearn

Energy consumption as measured against sales:
256 MWh/1 Million € (–11% YoY)n 33 locations with certified energy management system,n 13 according to ISO 50001, 24 according to EMASn PV installation in Montblanc went in operationn 100% use of renewable electricity in Germany and Austria

22

n

n

Ensure high quality working conditionsnCommunication with employee representation bodies
Conform with statutory regulations and offer
suplementary benefits at many locations
n MAHLE Business Coden MAHLE Guidelines on Social Responsibility released in 2022

32, 37,
44

n

n

n

Contribute to sustainable mobilitynnAssess environmental impacts of products
Increase the share of recycled content

nn

Become CO2 neutral by 2040 (Scope 1 & 2)
Determine scope 3 emissionsn Develop science-based targets

n

n

n

n

Affirmed strategic focus on electric vehicles, thermal management and highly efficient combustion engines

50-53

New PCF/LCA methodologies implemented
2% recycling content of resins (deceased from 5.9%)
n Waste as measured against sales: 17 tons/1 Million € (–6% YoY)

24-25

Report carbon emissions to CDP, Rating B
Scope 1 and 2 emissions as measured against sales:
76 kt/EUR million sales (–23% YoY)n German locations set CO2e neutraln Scope 3 methodology developed, Scope 3 emissions determined and submitted to Science-Based Targets Initiative forvalidation together with Scope 1 and 2 emission reduction

19-21

n

SDGs chosen based on analyses of customer requirements and the MAHLE Materiality Matrix.

*Accidents are recorded if they caused at least one day of absence, restrictions in work activity, or transfers to other workplaces.

59

GRI Content Index
All major, relevant sustainability topics are organized by means

ensure their effectiveness. Modifications and optimizations areof an integrated management approach for the purpose ofundertaken in line with current requirements. If there is an ad-

identifying and avoiding risks. The components of the ap-

ditional approach for a specific topic, this is explicitly stated inproach, including policies, goals, responsibilities, resources

the applicable chapter.

and feedback mechanisms, are regularly internally reviewed to

GRI Standard

DisclosurePage

GRI 2: General information 2021

2-1: Organizational details

10-11,

Omissions/explanations

71
2-2: Entities included in the organiza-

6-11,

tion’s sustainability reporting

AR 22

2-3: Reporting period, frequency and71

contact point

See MAHLE Annual Report 2022

The MAHLE Sustainability Report is publishedannually.

2-4: Restatements of informationn/ aNo restatements were necessary.

2-5: External assurance

56-57

The Sustainability Report 2022 has been externally assured by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft. A limited
assurance engagement in accordance with theInternational Standard on Assurance Engagements (ISAE) 3000 (Revised) was performed.

2-6: Activities, value chain, and other6-11,

business relationships

41-43

2-7: Employees

10-11,
30-32

2-9: Governance structure and com-

6, 14

positiona. The MAHLE Groupb. Sustainability Managementc. See Annual Report 2022"

2-10: Nomination and selection of the

AR 22

See Annual Report 2022

highest governance body
2-11: Chair of the highest governance

14

body
2-12: Role of the highest governancebody in overseeing the managementof impacts

6, 14

c. At least annual review

60

GRI content index

GRI Standard

DisclosurePage

2-13: Delegation of responsibility for

14

Omissions/explanations

managing impacts
2-14: Role of the highest governance14

body in sustainability reporting
2-15: Conflicts of interest

AR 22

2-16: Communication of critical con-

14,

cerns

45-48

2-17: Collective knowledge of the14

See Annual Report 2022

highest governance body
2-18: Evaluation of the performance

AR 22

See Annual Report 2022of the highest governance body
2-19: Remuneration policies

Confidentiality constraints

2-20: Process to determine remu-

Confidentiality constraints

neration
2-21: Annual total compensation ratio
2-22: Statement on sustainable de-Confidentiality constraints
4-5

velopment strategy
2-23: Policy commitments

4-5, 19,54

2-24: Embedding policy commit-

4-5,

ments

19,
54

2-25: Processes to remediate nega-

14,

tive impacts

45-48

2-26: Mechanisms for seeking advice

14,

and raising concerns

45-48

2-27: Compliance with laws and reg-

46-49

ulations

reasons.

2-28: Membership associations

17

2-29: Approach to stakeholder en-

14-17

gagement
2-30: Collective bargaining agree-

32-33

ments
3-1: Process to determine material

15

topics
3.2: List of material topics

No more details disclosed for confidentiality

15

61

Topic-specific standards
GRI Standard

Disclosure

Page

Omissions/explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

14-15,
41-42

GRI 204: Procurement Practices 2016

204-1 Proportion of spending on
local suppliers

41-43

GRI 3: Material Topics 2021

3-3 Management of material topics

48

GRI 205: Anticorruption 2016

205-1 Operations assessed for risks
related to corruption

48-49

a. Confidentiality constraints: Numbers ofoperations assessed for corruption are notpublished for reasons of confidentiality.

205-2 Communication and training
about anticorruption policies andprocedures

48-49

Only absolute figures are given.
a., b., d. and e. Further explanation: Trainings
are mandatory for members of the Management
Board, members of the MAHLE Management
Committee and for executives and employees inrisk-exposed areas.
c., we inform all our suppliers about MAHLE’sbinding Supplier Code of Conduct. Additionally,
the Supplier Code of Conduct and the MAHLE
Business Code are published on the Internet,
available for all business partners and the public.

GRI 3: Material Topics 2021

3-3 Management of material topics

48

GRI 206: Anticompetitive Behavior

206-1 Legal actions for anticompetitive behavior, antitrust, andmonopoly practices

48

GRI 3: Material Topics 2021

3-3 Management of material topics

23-24

GRI 301: Materials 2016

301-2 Recycled input materials used

23-24

GRI 3: Material Topics 2021

3-3 Management of material topics

14-15,
18-19,
21-22

GRI 302: Energy 2016

302-1 Energy consumption within
the organization

22

a. From table: ‘other’ sources includes propane, LPG, diesel, gasoline, propane, and district heat/steam.
c. ii./iii. Information unavailable: Proportion ofheating vs. coolingd. Not applicable to our businessf. We adhere to the GHG Protocolg. DEFRA 2021, IPCC 2006, IEA 2021

302-3 Energy intensity

22b. The denominator is sales
d. Within the organization

302-4 Reduction of energy
consumption

22c. Base year is 2019
d. Calculation methods as per GHG Protocol

Procurement Practicesa.,b.,c. Not applicable: In the automotive industry we fulfill global standards, which means
we must use global supply markets to ensure a
constant product quality and supply.

Anticorruption

Anticompetitive Behavior

a., b. Confidentiality constraints. Numbers ofsuch legal actions are not published for reasonsof confidentiality. AR 2022

Materials

Energy62

GRI content index

GRI Standard

Disclosure

Page

Omissions/explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

14-15,
26-27

GRI 303: Water and Effluents 2018

303-2 Management of water
discharge-related impacts

26-27

a. Information unavailable: Our locations are
responsible for their compliance with local
prescribed and legal requirements. We do nothave a global minimum standard set for thequality of effluent discharge.

303-3 Water withdrawal

26-27

a. iii. Not applicable. We do not source
seawater.
b., c. Information unavailable: We do not yet
aggregate data on areas with water stress or by
freshwater/other water.

GRI 3: Material Topics 2021

3-3 Management of material topics

14-15,
18-21

GRI 305: Emissions 2016305-1 Direct (Scope 1) GHG
emissions20b. All types of greenhouse gases included
c. Not applicable to our industrye. Emission factors are site-specific and CO2eequivalents are based on the DEFRA 2020 and
IEA 2022. GWP rates correspond to IPCC Fifth
Assessment Report.
f. operational control

305-2 Energy indirect (Scope 2)
GHG emissions

20

e. Emission factors are site-specific and CO2eequivalents are based on the DEFRA 2020 and
IEA 2022. GWP rates correspond to IPCC Fifth
Assessment Report.

305-3 Other indirect (Scope 3)
GHG emissions

20

305-4 GHG emissions intensity

20

Water and Effluents

Emissions305-6 Emissions of ozone-depleting
substances (ODS)
305-7 Nitrogen oxides (NOX), sulfur
oxides (SOX) and other significant air
emissionsb. The denominator is salesc. Scope 1 and Scope 2 included
d. All types of greenhouse gases included,
given as CO2 equivalents
Information unavailable: We do not yet aggregate information on air pollutants, such as
NOX (nitrogen oxides), SOX (sulfur oxides), orODS (ozone-depleting substances), across theGroup.

63
GRI Standard

Disclosure

Page

Omissions/explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

14-15,
23-25

GRI 306: Waste 2020306-1 Waste generation andsignificant waste-related impacts

25

a. i., ii. Information unavailable: We are in theprocess of improving our waste management
approach.

306-2 Management of significant
waste-related impacts

25306-3 Waste generated

25

b. Our plants adhere to local waste regulations
and manage waste according to general ISO
14001 requirements.
c. Waste data is managed in our central HSE
database.

GRI 3: Material Topics 2021

3-3 Management of material topics

41-42

GRI 308: Supplier Environmental
Assessment

308-1 New suppliers that werescreened using environmental criteria42

GRI 3: Material Topics 2021

3-3 Management of material topics

28-29

GRI 401: Employment 2016

401-1 New employee hires andemployee turnover

29, 32401-2 Benefits provided to full-time
employees that are not provided totemporary or part-time employees

37

We are in the process of creating a Group-wide
database to collect further information on someof these benefits.
a. i.– iii. Information unavailable: Some locations offer sick leave and accident insurance,
but this is decided on a local level.
a. iv. See 401-3
a. v. Information unavailable: We offer supplementary benefits at many locations, such as acompany-funded pension scheme in Germany.
a. vi. There is no employee stock ownershipplan at MAHLE.

401-3 Parental leaven/aa. Information unavailable: In alignment withlegal requirements.
b. – e. Information unavailable: We are in theprocess of creating a Group-wide database.
Information is currently only available forGermany.

GRI 3: Material Topics 2021

3-3 Management of material topics

28-29,
32

GRI 402: Labor-Management
Relations 2016402-1 Minimum notice periods
regarding operational changes

32

Waste

Supplier Environmental
Assessment

Our processes require an environmental assessment of all new suppliers and a comprehensive database is under development.

Employment

Labor-Management Relations

Information unavailable

64

GRI content index

GRI Standard

Disclosure

Page

Omissions/explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

14-15,
38-40

GRI 403: Occupational Health and
Safety403-1 Occupational health andsafety management system

39403-2 Hazard identification, risk
assessment and incident
investigation

38-40

b. Further explanation: The processes forworkers to report hazards is location specificand according to the management system.
Workers can report any violations via the Integrity Platform, which ensures confidentiality andanonymity.
c. Information unavailable: An answer on a
global level cannot be given, but the regions
and individual locations may have such policies.

403-4 Worker participation,
consultation and communication
on occupational health and safety

37-38

a. Further explanation: Locations have implemented local processes for worker participationand consultation.
b. Information unavailable: We do have safetycommittees (see chapter ‘Working at MAHLE’)but more detailed descriptions are not available
due to disparities between locations.

403-5 Worker training on
occupational health and safety39403-6 Promotion of worker health37403-7 Prevention and mitigationof occupational health and safety
impacts directly linked by business
relationships

38-40

In the event that our business partners are
directly or indirectly affected by the impact of anincident, we tell them at the earliest opportunity.

403-9 Work-related injuries

39

a. i., ii. Confidentiality constraints: Numbers
and rates of fatalities and high-consequence
injuries are not published for reasons ofconfidentiality.
a. iv. Information unavailable: Types of injury are
not yet documented in a standardized form. We
are working on a centralized method of dataacquisition.
b. i.-v. Information unavailable: Data not yet
recordedc. i.-ii. Confidentiality constraints: Work related
hazards are not published for reasons ofconfidentiality.
e. Rates have been calculated based on
1,000,000 hours worked.
f. Information unavailable: Data not yet recorded

Occupational Health and Safety

65
GRI Standard

Disclosure

Page

Omissions/explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

34

GRI 404: Training and Education

404-1 Average hours of training peryear per employee

34

Information not available

404-2 Programs for upgrading
employee skills and transition
assistance programs

34

b. We offer our employees numerous transition
assistance programs, such as for going into
retirement.

404-3 Percentage of employees
receiving regular performance andcareer development reviews

34

a. Information unavailable: Our system does not
yet allow for a breakdown of total employees
who received a performance and career review
by gender or employee category, it is only
possible to do so by location. In the future
performance reviews will be mapped on adifferent system that will allow a more detailed
breakdown of evaluation criteria.

GRI 3: Material Topics 2021

3-3 Management of material topics

15, 36

GRI 405: Diversity and Equal
Opportunity 2016405-1 Diversity of governancebodies and employees

36

GRI 3: Material Topics 2021

3-3 Management of material topics

35-37,
46-47

GRI 406: Non-discrimination 2016406-1 Incidents of discrimination andcorrective actions taken

35-37

GRI 3: Material Topics 2021

3-3 Management of material topics

41

GRI 407: Freedom of Association andCollective Bargaining 2016407-1 Operations and suppliers inwhich the right to freedom of association and collective bargaining may
be at risk

41

Training and Education

Diversity andEqual Opportunity

Nondiscriminationa. Confidentiality constraints: Numbers ofreported incidents are not published forreasons of confidentiality.
b. Confidentiality constraints: Details ofreported incidents are not published forreasons of confidentiality.
i. – iv. In accordance with the provisions of
the MAHLE Group Compliance Organization
Guideline all incidents of discrimination areassessed and corrective actions are takenfrom appropriate bodies.

Freedom of Association andCollective Bargaining

Information unavailable: No breakdown by
operations, suppliers and countries is available.

66

GRI content index

GRI Standard

Disclosure

Page

GRI 3: Material Topics 2021

3-3 Management of material topics

14-15,
41-43

GRI 414: Supplier Social Assessment
2016414-1 New suppliers that werescreened using social criterian/a414-2 Negative social impacts in the
supply chain and actions taken

47

3-3 Management of material topics

50-52

Omissions/explanations

Supplier Social Assessmenta. Information unavailable: Further explanation:
All new suppliers undertake to comply with the
MAHLE Supplier Code of Conduct. We do notcurrently screen new suppliers against social
criteria.

Mobility
GRI 3: Material Topics 2021

MAHLE assessed sustainable mobility as amaterial topic.

67

Imprint/Contact
Published by
MAHLE GmbH
Pragstraße 26–46
70376 Stuttgart/Germany
Phone +49 711 501-0
www.mahle.com
Contact
MAHLE International GmbH
Kathrin Apel, Head of Corporate Sustainability &Occupational Health, Safety,
and Environment Management (CO)Pragstraße 26–46
70376 Stuttgart/Germany
Graphic design and layout
3st kommunikation GmbH
Taunusstraße 59–61
55118 Mainz/Germany
Picture credits
Kai R Joachim, Andreas Pohlmann, Wolfram Scheible,
Manuel Uebler, MAHLE Archiv© 2023 MAHLE GmbH

MAHLE International GmbH70376 Stuttgart /Germany
Phone: +49 711 501-0
www.mahle.com

MAHLE Sustainability

00007874EN4/23

Pragstraße 26-46