Sustainability
Report
2023

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Contents
Preface04

The ­MAHLE Group06

Sustainability Management

12

Climate and Environment

16

Working at ­MAHLE

26

Occupational Health and Safety

36

Sustainability in the Supply Chain

39

Human Rights

42

Responsible Corporate Governance43

Sustainable Innovations

48

Sustainable Finance

54

The M
­ AHLE FOUNDATION

55

PwC Auditor’s Report

56

SDG Index

58

GRI Content Index

59

Imprint/Contact

67

04

Preface

Preface
Dear readers,Arnd Franz
Chairman of the Management Board
and CEO of the ­MAHLE GroupThe events and developments that occurred in 2023
have once again shown how important sustainablethinking and acting is for our society and our businesses. The year was marked by severe geopolitical tensions and economic challenges. Besides the terrible
suffering caused by the ongoing war in Ukraine andthe disturbing conflicts in the Middle East, businesses
and supply chains were also affected by rising interest rates, increases in energy and commodity prices
as well as pressure on global trade. At the same time,the year was marked by the continuation of numerous
relevant legislative changes, such as the Supply Chain
Transparency Act in Germany but also by interesting
trends. For example, in 2023 approximately 15 percent
more electric vehicles were sold worldwide than in theprevious year but the vast majority of vehicles still use
internal combustion engines. Electrification and sustainable Internal Combustion Engines are both pillars of
our group strategy ­MAHLE 2030+, which determines
the goals and enablers to create a successfull and sustainable future for ­MAHLE.
Ecological and social responsibility are, as you will readin this report, an important part of our business. M­ AHLE
strives to act consciously and be a law-­abiding company.
­MAHLE wants to be a role model when it comes to thehealth and safety of our employees, their jobs and thecautious use of resources along the entire value chain –from certified smelters to the end of life of products.
In addition to the eight strategic areas in our endto-end sustainability process, ­MAHLE has included a sustainability goal in its top five group strategy

05

goals of ­MAHLE 2030+. This enhances the value ofsustainability in the M­ AHLE Group. As a result, carbon reduction is one of the top five business goals
for ­MAHLE worldwide, and we are proud that thecompany is on track with its established CO2 Roadmap, having reduced the total Scope 1 and 2 emissions by 43 percent compared to 2019. Our CO2
Roadmap now also covers Scope 3 emissions both
upstream, for goods and services we buy from our
suppliers, and downstream, for emissions that arelinked to the use phase of our products. We have
set targets for these Scope 3 emissions to meetthe goals of the Paris Agreement. Our reduction targets have been externally validated by the Science
Based T­ argets initiative in 2023.
“If you can’t measure it, you can’t improve it.” Therefore, we have introduced Life Cycle Assessments and­Carbon Footprints to be able to assess the environmental footprint of our products. In particular, new processes and reporting methods have been implemented toensure environmental and social standards are met. For
example, we will comply with the German Supply Chain
Transparency Act in our supply chain and be preparedfor upcoming similar legislative regulations around theworld. We strive to offer sustainable and innovative
products in our strategic fields of Electrification, Thermal Management and Efficient I­nternal Combustion Engines. ­MAHLE is convinced that a variety of technology
solutions for mobility are needed globally to achieve theclimate targets as quickly as possible, and this is why
we are part of different alliances, such as the Hydrogen
Alliance, the Forum on Automotive After­market Sustainability and the E-Fuel Alliance.

MAHLE was awared the “Building Public Trust Award”
in Germany for the best sustainability reporting in the
category “non-listed company (newcomer)” and received another reward in China for the group’s sustainability strategy and its implementation.
In this Sustainability Report 2023, we aim to inform you
about our goals, strategies and measures as well as the
progress we have made in different areas. Our reporthas been prepared in accordance with the Global Reporting Initiative Standards. By using these standards,
we are making our actions more transparent and laying
the foundation for integrated sustainability communication in the future.

Arnd Franz

06

The ­MAHLE GroupThe M­ AHLE Group
MAHLE is an international development partner and supplier to the automotive
industry, ranking among the world’s top 25. The technology group, which isheadquartered in Stuttgart / Germany, was founded in 1920. ­MAHLE components
are installed on every second car throughout the world. ­MAHLE is a global
player with 148 production locations in 29 countries, especially at the key auto­­motive hubs. This is where our 11 research and development centers arelocated, creating innovations and new products that we supply to all passenger
car and commercial vehicle manufacturers worldwide. Thanks to our global
production network, we have a high degree of flexibility and considerable scaleeffects. In 2023, ­MAHLE generated sales of EUR 12.8 billion.

MAHLE 2030+
Our industry is changing. Electrification and digitalization are

And as far as Internal Combustion Engines are concerned,

shaping mobility – to reduce our CO2 footprint, to protect our­MAHLE will remain a reliable partner to its customers around the­climate, to make transportation more efficient and more comfort-

world. As there is demand, ­MAHLE will drive efficiency progressable, and to provide better products to people around the world.

in this segment with suitable products and optimize its cost

As a key player in the industry and leader in technology, M­ AHLE

structures. This is because electrification will not be the only solu-

is taking a key role in driving this transformation. In the next dec-tion for carbon-neutral mobility. If we want to achieve resultsade, the importance of fossil fuels will be and will have to bequickly, we have to apply all available technologies. This is why

drastically reduced. ­Electric cars and trucks will become prevail-

we are embracing technology diversity.

ing solutions, and production volumes for combustion engines
will decline in most markets.

Markets and products

Our new strategy M­ AHLE 2030+ addresses this changing environment. We are building on our vision “We Shape Future Mobili-

MAHLE has positioned itself clearly for the future: our goal is toty” with three strategic areas: Electrification, Thermal Manage-

make mobility more efficient, more environmentally friendly, andment and Clean Internal Combustion Engines. This combination

more comfortable. We offer our customers attractive, competi-

makes M
­ AHLE a strong and competent partner for the automo-

tive, and sustainable solutions in all major global markets and fortive industry.

all drive types. In doing so, we will concentrate on those products
in which we have or can expand a leading market position. All

In Electrification, ­MAHLE is focusing on efficient electric drives and­MAHLE activities have one thing in mind: to maximize output

intelligent charging. A key ­MAHLE competence that is fundamen-

while minimizing emissions. We strive for efficiency in everything

tal to electrification is Thermal Management. In this area, ­MAHLE

that moves. That’s why we call our mission “Efficiency in Motion.”

will continue to expand its position as a supplier of modular ther-

It is a slogan for both our solutions and the way we work: seam-mal management systems for batteries, drives, and cabin comfort.

less collaboration that is focused on our customers and our goals.

07

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The ­MAHLE GroupOur management approach
We are led first and foremost by our vision “We Shape Future

The Engine Systems and Components business unit rep-

Mobility”, our predefined five group goals and our leadershipresents one of our core fields of expertise and reflects decades

principles. Four ­MAHLE leadership principles provide the direc-of development and system know-how. The range of products

tion and framework for a global understanding of leadership. The

includes steel and aluminum pistons, piston rings, cylinder liners,

non-profit ­MAHLE Foundation holds 99.9 percent of the com­engine bearings and valve train systems.

pany’s shares, while 0.1 percent of the shares are held by Verein
zur Förderung und Beratung der ­MAHLE Gruppe e.V. ­(MABEG),
which also holds all of the voting rights and therefore exercises
the shareholder rights. This structure ensures our entrepreneurial

The Filtration and Engine Peripherals business unit is one

independence, which creates the basis for long-term planningof the top suppliers in many product groups. It offers productand long-term investment decisions. The M­ AHLE Management

solutions such as filter systems and components for the engine

Board discusses and makes common decisions from a groupperiphery.

perspective.
Our management system helps us to achieve our business objectives, meet international customer standards and comply withThe Thermal Management business unit develops thermal

national and international standards and regulations. The basic

solutions for batteries, fuel cells, power electronics, electric

principles of our organization, management system and busi-

drives and combustion engines enabling greater ranges, higher

ness processes are defined in the Group Management Manual.

efficiencies and a longer service life.

Employees must follow the processes defined in this manual.
Advisory boards such as the Risk Management Committee or
the Compliance Steering Committee review the management ofspecific topics. The ­MAHLE Group is divided into five business

Our expertise in the development and manufacture of electricunits, which are also responsible for breaking down the various

motors and of electronic and mechatronic systems forms thegoals into organizational processes:

foundation 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, engine repair partners and retail platforms around the world withproducts in original equipment quality, service units and services.
In addition to this, we have four profit centers: Motorsports andSpecial Applications, Large and Small Engine Components, Industrial Thermal Management and Control Units, which address
specific market and customer segments. We serve customers in
Europe, North and South America and Asia/Pacific.

09

MAHLE Group business segments 2023
Sales: EUR 12,818 million | Headcount: 72,373
BUSINESS UNITSPROFIT CENTERS & SERVICES
Motor­s ports andSpecial Applications

Large and Small
Engine Components
Engine Systems
and Components

Filtration andEngine Peripherals

ThermalManagement

Electronics andMechatronics

Aftermarket

Industrial Thermal Management

Control Units

Corporate Services

EUR 2,636 million

EUR 2,136 million

EUR 4,591 million

EUR 1,357 million

EUR 1,256 million

EUR 841 million

23,354

9,586

20,180

8,615

1,956

8,682

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. We also strive tocontinuously improve our processes to consistently provide ourcustomers with reliable, high-quality products on time.
Logistics in the automotive sector are closely synchronized,
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 a loss of supplies. If a risk
occurs despite risk mitigation measures, our contingency plans
help to maintain our deliveries to customers.

Sales
Headcount10

The ­MAHLE GroupKey figures of the ­MAHLE
Group by region

North America
24 production locations
15,314 employees1
Sales of EUR 3,562 million
Canada, Mexico, USA

148 production locations

11 ­MAHLE
Tech Centers worldwide

72,373 employees1

South America
8 production locations
8,435 employees1
Sales of EUR 759 million
Argentina, Brazil

11

Europe54 production locations
31,690 employees1
Sales of EUR 5,892 million
Austria, Bosnia and Herzegovina,
Czech Republic, France,
Germany, Great Britain, Hungary,
Italy, Poland, Portugal, Romania,
Slovakia, Slovenia, Spain, Türkiye

Asia / Pacific
60 production locations
16,141 employees1
Sales of EUR 2,548 million
China, India, Indonesia,
Japan, Philippines, Singapore,
South Korea, Thailand

Africa2 production locations
793 employees1
Sales of EUR 57 million
South Africa
1

As at December 31, 2023

12

Sustainability Management

Sustainability Management
Sustainability is not a fashion trend at M
­ AHLE. The link between environmental
protection, good corporate governance, and the economy has become agenuine success factor. Just as we at M
­ AHLE 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, and protecting the environment, resources andthe well-being of our employees. Sustainability for ­MAHLE means
remaining a reliable partner for our customers while innovating
our products to have a reduced impact on the environment.

risks and opportunities at an early stage and ensures the appropriate management of our sustainability projects.
In our ­MAHLE 2030+ strategy, we have defined carbon reduction
as one of our five group goals, therefore making sustainability
topics even more relevant. End-2-End Sustainability has becomea strategic enabler to implement sustainability topics in all relevant business processes. Further action fields are Climate & Environment, ­Occupational Safety, Employees and Social, Human
Rights, Compliance and Ethics, Sustainable Products, Sustaina-

Sustainability managementble ­Financing and Sustainable Purchasing.
The ­MAHLE Management Board receives quarterly briefings on

At a glance
n

n

n

n

current sustainability developments and the status of the relevant

The materiality analysis was updated with four new mate-targets. Projects and measures are operationally implemented inrial topics: Child Labor, Forced and Compulsory Labor,sustainability topics in a decentralized manner in the various busi-

Customer Health & Safety and Corporate Culture

ness units and central functions of the ­MAHLE Group.

Carbon reduction has become one of the TOP 5 goals of
the whole ­MAHLE GroupThe corporate function for sustainability is responsible for manag-End-2-End Sustainability has become a strategic enabler

ing the sustainability program. It coordinates sustainability activ-

of our group strategy M­ AHLE 2030+

ities throughout the group, leads the regular updates of the ma-

The EcoVadis rating lists MAHLE among the 10 percent of

teriality analysis, conducts performance monitoring, and ensures

best performing automotive suppliers

communication and stakeholder dialogue.

The MAHLE Management Board is ultimately responsible for sus-

The sustainability organization has grown. All business units havetainability, environmental management, and safety at work. Strate-

appointed sustainability managers who are responsible for intro-

gic decisions related to the sustainability goals of M
­ AHLE are madeducing and implementing the program and carrying out specificby the Management Board. The Sustainability Report must be ap-

projects. We apply international standards relevant to our indus-

proved by the responsible members of the ­MAHLE Management

try when designing our environmental, quality and occupational

Board. Our sustainability management is regularly reviewed by thesafety management. Appropriate management systems are fun-Sustainability Steering Committee. The committee identifies related

damental in helping us to assess sustainability risks and design

13adequate mitigation measures. We regularly review our manage-

To ensure the credibility of our reported data, ­MAHLE hasment systems to ensure they meet internal and external expec-­increased process efficiency and reporting requirements bytations and drive certification of our plants in accordance withintroducing a new IT solution for sustainability key performanceinternational standards.

indicators.

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

Employees& Social

Occupational
Health & Safety

Sustainable
Procurement

Human
RightsCompliance& Ethics

Sustainable
Products

Sustainable
Finance

Sustainability Report & Ratings, Program Management

Defining material topics

the topic to our stakeholders and the impact of M
­ AHLE. While

Our materiality matrix has been developed in accordance with thegenerally confirming the results of the 2022 assessment, minor

guidelines provided by GRI 2021, the Global Reporting Initiative.

adjustments were made to the importance of selected topics.

We have used the expertise of different global and regional func-

For example, child labor and forced labor, consumer safety andtions to rank topics and validate the resulting materiality matrix.

corporate culture have become material topics. According to the

To better reflect the views of stakeholders at our 148 manufac-

materiality analysis, the topics of waste and water/wastewater

turing sites around the world, we engaged regional business unit

are not material anymore but we still report them in accordance

managers and plant managers in defining the material topics.The

with GRI. See graph below for an overview of the M­ AHLE ma-

update of our 2023 materiality analysis reflects the importance of

terial topics.

Material topics for M­ AHLE
Material topics
Environment

Society

Governance– Emissions– Energy– Occupational Health & Safety– Diversity & Equal Opportunity– Employment– Child and Forced Labor– Talent Management– Anti-Corruption– Anti-Competitive Behaviour– Corporate Culture

Employees &SocialClimate &Enviroment– Sustainable Mobility– Sustainable Materials
Sustainable
Procurement

Sustainable
Products

Sustainable
FinanceOccupational
Health & Safety

Human
RightsCompliance& Ethics

14

Sustainability Management

Ratings and rankings

Morningstar Sustainalytics evaluates companies based on pub-The ­MAHLE sustainability activities are regularly evaluated by ex-

licly available information according to a so-called Sustainability

ternal agencies.

Risk Score. Our risk rating improved last year from 17.0 to 14.6
points, which means that M­ AHLE is currently also among the top

Ecovadis is a cross-industry platform that enables customers to

20 percent of automotive suppliers. M­ AHLE provides sustainabil-

evaluate their suppliers according to sustainability aspects. With

ity-related information to its customers via the Drive Sustainability

a total of 61 out of 100 points, ­MAHLE has increased its score

initiative. Drive Sustainability uses SAQs (self-assessment ques-by four points in comparison to the previous assessment. This

tionnaires) to evaluate the sustainability performance of suppliers

places the company among the top 10 percent in our peer groupin the automotive industry.

(manufacture of parts and accessories for motor vehicles).
The SAQ aims to gain a holistic picture of a supplier’s sustainaThe Carbon Disclosure Project (CDP) is a reporting platform withbility performance and is measured on plant level. Overall, all ofa focus on climate protection. ­MAHLE currently uses CDP to re-the 120 rated plants are compliant with customer requirements.

port on the performance in terms of climate and water protection. MAHLE received a B rating for CDP climate, which is above
average globally and in our industry.
Overview of sustainability ratings
RatingSummary

Result 2023

Result 2022

Improvement

Ecovadis

Top 10% in group (Manufactureof parts and accessories for motor
vehicles)

61/10057/100n

CDP Climate

Above industry average

B

B

CDP WaterIndustry average

B

B–

Morningstar
Sustainalytics22

Low risk of experiencing
material financial impacts
from sustainability factors

14.6

17.0

Environment

MAHLE increased its scoring insix out of eleven categories
and reached in ten out of eleven
categories the score A or An

Value chain engagement
Water accountingnProduct and service safetyn In no event the rating shall be constructed as investment advice or expert opinion as defined by the applicable legislation. Copyright © 2024
Morningstar Sustainalytics. All rights reserved. This score contains information developed by Sustainalytics (www.sustainalytics.com). Suchinformation and data are proprietary of Sustainalytics and are provided for informational purposes only.

External engagement andpolitical dialogue

holders and political actors is driven by two motivating elements.
Firstly, engaging with political entities ensures we are aligned withevolving regulations. This enables us to proactively adapt to andcomply with new standards and legislative changes, understand

MAHLE recognizes the pivotal role of external engagement andimportant regulatory developments and contribute our expertise

political dialogue in order to improve sustainability. This stems fromto political processes. Secondly, by actively participating in polit-

our understanding that collaboration with external stakeholders

ical dialogues, we are able to identify and mitigate potential risks

is integral to addressing societal and environmental challenges.

associated with regulatory uncertainties, geopolitical develop-

As a global company, our active relationship with external stake-ments, market access and industry-specific challenges.

15Management and activities of external partners

ance with regulations and industry standards is non-negotiable.

MAHLE aims to provide expertise to political processes and to

Officials in particular must comply without exemptions and must

contribute to the formulation of policies related to our businessnot appear to be exerting any influence from the outset. In terms

activity, e.g. in the field of environment, innovation or technology.

of external, the ­MAHLE Business Code defines a clear code of

We have established relationships with members of parliaments,

conduct for dealing with third parties. We are listed in the Euro-

public authorities, ministries and government representatives

pean Transparency Register with respect to our lobbying activities

and want to adopt a solution-focused approach when applying

at European level and other national and regional registries, where

our industry knowledge. At group level, the central department

applicable.

of External Affairs coordinates relations with policy makers, inGermany, the European Union and in other main markets.

Our focus in 2023
2023 was dominated by distressing geopolitical events in the Mid-In addition to direct dialogues with representatives of government,

dle East and continued serious concern caused by the R­ ussianauthorities, or institutions, we actively participate in the formulation

attack on Ukraine. Besides terrible human suffering, the ongoingof political positions in relevant associations in Germany, the EU

war in Eastern Europe in particular led to political reactions, geo-

and its member states, as well as other countries.

political uncertainties and trade tension. This can impact supply
chains, production and market conditions and lead to externalInternationally, we are part of various associations and networks,

shocks to business, industry and society. Like most companies,

including the German Automotive Industry Association (VDA), the

MAHLE also had to deal with the results and we were closely mon-European Association of Automotive Suppliers (CLEPA), the US

itoring any legislation discussed and eventually implemented byMotor & Equipment Manufacturer’s Association (MEMA), and as-policy makers.

sociations in Brazil, China and Japan related to finance, researchand technology, information technology, logistics, trade and after-

The year was also characterized by numerous legislative initiatives

market. We participate in industry associations, working groups

relevant to the industry continuing to adopt policies. Major EU reg-and forums to legally collaborate with peers, share best practices,

ulatory initiatives were further developed to continue the de-car-and collectively address the challenges faced by the automotive

bonization of business impacting M­ AHLE, especially the regulationindustry in terms of politics and society. In selected cases, ­MAHLE

on CO2 limits for passenger cars and heavy duty vehicles, hydro-

leadership takes a more active role in these associations. This

gen and pollutant emissions for new vehicles ("EURO 7"). And inincludes active involvement in non-­competitive technology andgeneral, the regulatory frameworks to shift toward electric vehicles

innovation discussions, which allows us to contribute to the devel-

are of importance to ­MAHLE.

opment of sustainable solutions.
MAHLE is convinced that we need diversity in technology soluThese organizations are valuable platforms for us in terms of iden-tions for future mobility to reach the climate targets as fast as

tifying common interests within the industry and facilitating active

possible. We advocate for policy makers to adopt a regulatorycommunication with external stakeholders.

framework that considers the contribution of different powertraintechnologies for sustainable road transport and freedom of choice

MAHLE believes that regular and transparent communication

for business and consumers.

with stakeholders, including politicians, investors, customers,
local communities and the public ensures that the sustainability

The integration of advanced technologies in vehicles and the au-

efforts of MAHLE are visible and understood.

tomotive aftermarket raises questions about data privacy, data accessibility, cybersecurity and respective regulatory activities. Some

MAHLE takes transparency very seriouslyof these questions are covered by the EU’s Data Act. Engaging inTransparency is foundational to our approach in external engage-

political dialogue to address these concerns related to digitaliza-

ment. We acknowledge that integrity is key to mutual trust and un-tion and its secure and indiscriminatory data availability is a vital

derstanding in our political representation, so we have conveyed

topic for our company’s business.

our recognized ambition in our compliance requirements. Compli-

16

Climate and Environment

Climate and Environment
MAHLE is committed to its responsibility toward the environment and takes
the expectations of its stakeholders seriously. Climate and environment istherefore a key element of the strategic enabler End-2-End Sustainability ofour business strategy ­MAHLE 2030+.

Our environmental management system focuses on minimizing en-

Environmental management is overseen by the Sustainability &vironmental impacts on water resources and biodiversity loss in our

Occupational Health, Safety and Environment (HSE) corporate

immediate environment, increasing resource efficiency and pro-function with support from the regional departments. Four re-moting environmentally friendly practices in business processes.

gional HSE heads report regularly on the status of HSE management in the M­ AHLE plants. This direct line of communication

MAHLE contributes to the Sustainable Development Goals (SDGs)

from our plants via the regional to the corporate function ensures“Clean Water and Sanitation” (SDG 6), “Affordable and Clean En-

a constant flow of communication at ­MAHLE. This setup helps

ergy” (SDG 7), “Responsible Consumption and Production” (SDG

to initiate new environmental projects, increases transparency for12), “Climate Action” (SDG 13).

the corporate function and eases communication.
Each production location has a HSE team or at least one HSE
officer to ensure compliance with regulations and our management system. The responsibilities of the local HSE representatives include recording key HSE figures regularly and providing
support for the implementation of the HSE targets. We manage
our environmental performance on the basis of the Plan, Do,
Act, Check cycle. We have defined key performance indicators(KPIs) on different levels for the most important topics so that
we can monitor our progress. Based on the reporting, KPIs areaggregated across the group and discussed regularly within the­MAHLE Management Board.

Environmental management

Our regional HSE representatives coordinate internal surveillance audits as part of audit programs and report monthly tointernal stakeholders to ensure continuous improvement at the

Combining stakeholder requirements with our own environmentalsites. External audits are also conducted to ensure our com-

goals is part of our strategy toward reducing our environmental

pliance with statutory environmental requirements. Employees

footprint, increasing efficiency, and making us more resilient.

participate in finding the root cause of incidents and cases of
non-conformity and in establishing corrective actions. These

At a glancenactions are later evaluated to ensure that similar incidents are

In 2023, 145 of our 148 locations were certified inprevented. For cases of non-conformity, the same process is­accordance with the environmental management

followed, and the corresponding actions and corrective meas-

system ISO 14001 or EMAS

ures are documented.

17

Our group-wide Guidelines for Occupational Health & Safety, En-

Management of Greenhouse Gas Emissions

vironmental and Climate Protection instruct us on how to handle

Climate change has become a main driver of transformation incomplex environmental topics. It specifies in more detail how en-

the automotive industry.

vironmental standards have to be taken into consideration during
the development of new products and processes and calls for

The Paris Agreement is a legally binding international treaty toexisting processes to reduce their environmental impact. One

address the effects attributed to climate change and to limit glob-

example is the ­MAHLE Business Code, which specifies our ob-

al warming to well below 2°C, preferably to 1.5°C, compared tojectives for health, safety, environmental and climate protection.

pre-industrial levels.

Our environmental management system is based on strict inter-

With regard to the direct emissions of MAHLE from combustion

national standards. In 2023, 145 of our 148 locations were certi-

processes (Scope 1 emissions) and the greenhouse gas emis-

fied with ISO 14001 and / or EMAS.

sions caused by the generation of purchased energy (Scope 2
emissions), ­MAHLE has set the clear goal to be in line with theParis Agreement and aims to become carbon neutral by 2040.

Climate protection

The interim target is to reduce Scope 1 and 2 emissions by 49
percent by 2030.
Emissions generated in the supply chain through purchased
goods and services (Scope 3, Cat. 01) and through product use(Scope 3, Cat. 11) are to be reduced by 28 percent by 2030.
The base year for our short-term climate targets is 2019.

Climate protection is one of the major challenges we face today.
­MAHLE is therefore striving to significantly reduce its impact on the

In 2023, t­he 2030 climate targets set by MAHLE (Scope 1&2

climate. As such, we have integrated climate protection into ourand Scope 3 Cat. 01&11) have been externally validated by thebusiness strategy as a strategic topic.

Science-Based Targets initiative to be in line with latest climate
science and the goals of the Paris Agreement to limit global

At a glancennnMAHLE was able to reduce Scope 1 & 2 emissions by
43 percent and Scope 3 emissions relevant to our SBTi

When reporting greenhouse gas emissions, we take into accounttarget (Cat. 01 and Cat. 11) by 9 percent compared to

the recommendations of the Greenhouse Gas Protocol (GHG

the baseline 2019

Protocol). We record Scope 1 and Scope 2 emissions related to

145 energy efficiency projects in 2023 resulted in

our own operations (operational control approach) from facilities

reported energy savings of about 32 GWh annuallywith more than 50 employees on a monthly basis.

The share of renewable electricity increased by
10 percent compared to 2022 to 372 GWhn

The climate targets of MAHLE 2030 have been externally v­ alidated by the Science Based Targets initiative(SBTi) to be in line with the Paris Agreement to limit
global warming to 1.5°C

nwarming to 1.5°C.

MAHLE once again received a CDP climate rating of B

18

Climate and Environment

Scope 1 and 2 emissions

Our production locations in Germany have used renewable elec-

The most important energy sources used in our plants are elec-

tricity since 2021 (guarantees of origin) and have compensatedtricity and natural gas, which is used in our energy-intensive pro-their Scope 1 and Scope 2 (district heating) emissions with car-duction processes like foundries and welding. With more thanbon offsets. In order to achieve the Scope 1 and 2 targets, we

two thirds of the total energy consumption most of the green-

are acting in the following areas:house gas emissions stem from the use of electricity.
1. We aim to increase energy efficiency by 2 percent every year.
In 2023, we were able to reduce Scope 1 and 2 emissions by 13
percent compared to 2022. Scope 1 emissions decreased by 5
percent, mainly due to a reduction of natural gas consumption.
Scope 2 emission decreased by 15 percent. This change is mainly
due to the increased purchase of less carbon-intensive electricity.

2. We want to generate electricity from solar power by operating our own photovoltaic systems.
3. We want to use more renewable energy sources to ­cover ourelectricity demand and minimize our CO2 emissions.
4. We want to replace fossil fuel use with electricity or otherequivalent resources.

Scope 1 and 2 greenhouse gas emissions

Unit

2019

2021

2022

2023

Scope 1

kt CO2e

217

210

197

186

Scope 2 – market based

kt CO2e

1,233

866

747

637

Scope 2 – location based

kt CO2e

n.r.

803

812

838

Total emissions (market based)

kt CO2e

1,450

1,076

945

823

Offsets of emissions in Germany

kt CO2e

0

–33

–26

–24

Total emissions including offsets Germany

kt CO2e

1,450

1,044

919

799

Relative emissions as measured against salest CO2e /

121

98

76

62

EUR million sales

Scope 3 emissions

However, Scope 3 emissions rose from 31 Mio tons CO2e in

We used the GHG Protocol to determine our most relevant

2022 to almost 33 Mio tons CO2e in 2023. The increase of

Scope 3 categories and calculated the emissions in all Scope

Scope 3 emissions compared to the previous year is mainly due

3 categories. The largest share of carbon emissions in the val-

to business growth, as well as methodological changes. In par-ue chain comes from upstream emissions of the raw materials

ticular, emission factors (weight-based) for core materials, e.g.,

and services we purchase (Category 01) and from the use ofaluminum, plastics and steel, have increased in Category 01.

our products (Category 11). These two categories make up 96

Also an improvement in data accuracy led to higher emissions

percent of our Scope 3 emissions in 2023.

in the category.

Since these two categories are of material importance to ­MAHLE,

In 2023, ­MAHLE started to apply supplier-specific emission

they have been integrated in our Scope 3 near-term target, which

factors (weight-based) to the calculation of Scope 3 Catego-has been validated by the SBTi. In terms of progress toward thery 01 emissions. Even though data availability is still limited,

SBTi target, M­ AHLE achieved a reduction of 9 percent in 2023

supplier-­specific emission factors were found to be well below

compared to the baseline 2019.

the a­ verage database emission factors. Scope 3 Category 11

19
increased slightly due to a market-driven delay in the increaseof new battery vehicle registrations.

2. Emissions in Scope 3 Cat. 11 (use phase emissions) mainly
depend on our product portfolio and the specific demands ofour customers.

In order to achieve significant reductions in the supply chain in
the coming years, we are intensifying our collaboration with our
suppliers. In particular, ­MAHLE will focus on gathering and processing emission data from suppliers. We have also specified our
expectations toward carbon management in the supply chain in
our Supplier Code of Conduct.

3. We engage with selected key suppliers on their decarbonization journey.
4. ­MAHLE defines specific requirements for the use of renewableenergy or low-carbon materials in selected projects.
5. In electrification, ­MAHLE is focusing on electric drives and­intelligent charging. We will continue to expand our positionand portfolio as supplier of modular Thermal ­Management

In order to achieve our Scope 3 targets, we are mainly acting insystems for batteries, drives, and cabin c­ omfort.

the ­following areas:
1. In order to increase transparency on Scope 3 Cat. 01 (purchased goods and services) emissions, we gather emission

In 2023, MAHLE compensated emissions fromflight travel by the means of carbon offsets inorder to promote sustainable business travel.

data from our suppliers in the Cost & Emissions Transparency
sheet (CET) for information about Product Carbon Footprints.
The main contributors are materials like aluminum, plastics
and resins.

Scope 3 greenhouse gas emissions 2023 by category

Unit

2019

20213

2022

2023

01 Purchased goods and services

kt CO2e

6,0924

5,134

5,891

7,260

02 Capital goods

kt CO2e

203

185

256

222

03 Fuel- and energy-related services

kt CO2e

467

436

290

301

04 Upstream transportation and distribution

kt CO2e

148

133

91

183

05 Waste generated in operations

kt CO2e

48

43

67

91

06 Business travel

kt CO2e

5

2

2

9

07 Employee commuting

kt CO2e

132

24

114

113

08 Upstream leased assets

kt CO2e

n.r.

n.r.

n.r.

n.r.

09 Downstream transportation and distribution

kt CO2e

27

24

16

33

10 Processing of sold products

kt CO2e

356

299

294

292

11 Use of sold products

kt CO2e28,67624,431

24,13624,24312 End-of-life treatment of sold products

kt CO2e

14

12

12

11

13 Downstream leased assets

kt CO2e

1

1

1

2

14 Franchises

kt CO2e

n.r.

n.r.

n.r.

n.r.

15 Investments

kt CO2e

n.r.

n.r.

n.r.

n.r.

Total

kt CO2e36,17130,726

31,171

32,76032021 not audited4

 missions in Cat. 01 were calculated based on a spend-based approach. We changed to a weight-based calculation method for productionEmaterial and included non-production material in the calculation as of 2021. Aftermarket spend has been included in the calculation of Cat.
01 Purchased Goods and Services starting in 2022.

20

Climate and Environment

Energy savings through nature

management. Annual energy efficiency targets are defined on

At the Austrian site in St. Michael ob Bleiburg, cooling water

plant level.

has recently been supplied from the nearby deep well. By cooling the injection molding plant using groundwater, refrigeration

Total energy consumption remained stable compared to 2022 but

compressors and free coolers could be put out of operation.

improved by 11 percent relative to the annual sales.

This saves M­ AHLE around 7.7 million kWh of electricity per year.
In addition, noise emissions were reduced by switching off the

The share of renewable electricity increased by 10 percent com-system. The extracted groundwater is 100 percent recycled andpared to 2022. This is due to the installation of a photovoltaic

cooled down again via a heat exchanger before being returned

system e.g. in Izmir, Türkiye, the increased use of solar pow-

to the ground.

er through leasing contracts in India and China as well as theswitch to renewable electricity in selected plants.

Energy consumption
In 2023, we continued to report developments related to en-

We were also able to reduce the consumption of fossil fuels, inergy and emissions regularly, e.g., through monthly reports forparticular heating oil and natural gas, as part of our decarboni-

business units and regions as well as a quarterly report for our

zation journey.

Energy consumption 2021 / 2022 / 2023 by source
Energy source

Unit

2021

2022

2023

Change2022–2023

Total electricity

GWh

2,118

2,139

2,174

2%

(of which non-renewable)

GWh

1,780

1,803

1,802

0%

(of which renewable)

GWh

338

336

372

10%

Heating oil

GWh

29

26

25

–2%

Natural gas

GWh

896

917

852

–7%

Other

GWh

99

102

137

35%

Total

GWh

3,141

3,184

3,189

0%

Relative energy consumption as measured

MWh/
287

256

249

–3%

against sales

EUR million
sales

21
Energy efficiency has been an integral part of our environmental management systems on group and plant level. At the endof 2023, 11 locations were certified in accordance with the ISO
50001 energy management system and 18 in accordance with
the EMAS standard. The energy management at these locations
is supervised by an energy manager and they help us tackle energy-intensive processes by continuous improvement. Some plants
also carry out their own energy audits.
In 2023, we continued using the implemented energy sprints toenhance energy management. Energy Sprints are carried out
over several weeks by a team consisting of experts from different
plants and typically start with data/information collection, on-siteenergy audits with brainstorming and identification of potential
measures, which are presented to the plant management. The­objective is to identify energy efficiency potentials and cost savings, but also share best practices. In 2023, six energy sprints
were carried out and those sprints are already an integral part ofour continuous improvement and optimization process.

Since 2022, ­MAHLE has been offering its plants
the use of an Industrial Internet of Things (IIoT)
platform for ISO 50001-compliant energy recording by combining energy data with production data to draw conclusions about potential savings. 34 plants are now connected andproactively working with energy monitoring. In
these plants, peak shaving and predictive consumption can be derived in the future and may
be seen in automated, web-based reports anddashboards as well as a comparison of energy
consumption between specific systems to enhance best practice sharing.

22

Climate and Environment

Sustainable products
The sustainable product development activities of MAHLE con-

The Product Carbon Footprint is a mandatory requirement fortribute to the Sustainable Development Goals “Responsible

many new requests for quote and might become a decisive fac-

Consumption and Production” (SDG 12).

tor in future business nominations.
There is also an internal demand from research and development. In order to be able to come up with ecologically enhanced
products, it is essential to compare the impact of different materials, manufacturing processes and designs.

It is one of our core challenges to develop our business toward
a circular economy. We use raw materials in our production processes, and we need energy to process these products, which
affects the environment. Scarcity and price increases for raw
materials and energy have a significant impact on business activities. For reasons of environmental protection and cost effectiveness, our goal is to use resources efficiently and limit the impactsof our processes.
At a glancen

MAHLE obtained an external certification for calculating
the Product Lifecycle and Carbon Footprint in accordancewith the ISO (International Organization for Standardization) standardsn

We are actively working to increase the use of recycledmaterials

Material loops need to be closed in order to be sustainable in
the long-term. We strive to contribute to resource conservation by putting a greater focus on the sustainable compositionof our products and on making our products more recyclable
and climate friendly, while achieving the required product andmaterial quality. Therefore, we focus on sustainably developing
products and purchasing sustainable materials early on. Working toward a circular economy is a task that involves ­MAHLE asa whole, from Research and Development to production and

In 2023, ­MAHLE obtained an external certification on the method
used for calculating the product life-cycle and carbon footprint.
This certified that the method is scientifically and technically validand sufficient in accordance with the international standards ISO
14040 / 44, ISO 14067 / GHG Protocol Product Standard. The
external certification not only significantly enhances the credibility of ­the company’s sustainability efforts but also contributes tobuilding a trustworthy reputation with customers.
An analysis across the entire value chain showed that parts andassemblies from external suppliers have a significant impact on
the MAHLE CO2e footprint. Therefore, ­MAHLE has started a pilot project to determine the product-related emissions in collaboration with our suppliers. This approach brings transparency
and identifies main emissions drivers. One exemplary outcome
is that ­MAHLE defines specific requirements for the use of renewable energy in specific plants or low-carbon materials in selected projects.
A similar process was implemented for life-cycle assessment. It
ensures that sustainability aspects beyond emissions are considered early on and effectively. This ensures that all legal andcustomer requirements can be met. Some of the benefits include
being able to:n

Emissions can then be reduced by taking actions at the mostsales.
Product Life-Cycle Assessments and Carbon Footprint
The increasing demand for life-cycle assessments and productcarbon footprint calculation reflects a growing awareness forsustainability among customers and businesses.

identify improvement potential within product life-cycle.
relevant ­development stages,ncompare alternative designs and products with regard to­environmental impacts,nprovide detailed environmental information to internal andexternal stakeholders.

23
Recycled materials

In order to better manage chemicals and identify improvement po-

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

tentials while minimizing the risks, we started to build up a global

such as aluminum and steel.

chemicals database. Some of the benefits include being able to:

In recent years, M­ AHLE has assessed ways to increase the sharenof resins from renewable materials. The volumes used decreased
from about 7,770 tons in 2022 to 6,661 tons in 2023 (5,3 per-monitor volumes, locations and usage of chemicals to ensure
accurate inventory management,nmaintain an up-to-date database of safety data sheets forcent). Due to a calculation error in the last report, the figure foreach chemical, providing crucial information on hazards,

last year was changed. The decline is caused by market condi-

handling and emergency procedures,tions that prevented M­ AHLE from securing recycled compoundsnin North America. The main reason lies in a global shortage of theassess and prioritize chemicals risks, helping to focus on
high-priority areas,

glass filler required to produce recycled resins. This was evidentnmonitor exposure measurements and employee exposure,with several suppliers, so primary material was used instead ofnmanage and evaluate the threshold limits based on regulatory

recycled material to avoid stoppages for customers due the sup-standards and industry best practices to ensure compliance.

ply chain failures. Although M­ AHLE intends to increase the recycling share of resins in the design phase, specific OEM (Original

By further addressing these elements, we will promote a safer

Equipment Manufacturer) product design requirements, which

workplace, proactively address potential health and safety risks

often cannot be met by recycled compounds, limit this capability.

associated with workplace exposure and ensure compliance

However, we plan to switch back to recycled polymers wherewith regulations.

possible in 2024.
MAHLE is working closely with suppliers to source raw mate-

Waste management

rials with higher recycled content, and is exploring ways to incorporate more recycled content without compromising quality

Waste management activities carried out by MAHLE contrib-

and performance, therefore meeting customer and develop-

ute to the Sustainable Development Goals (SDG) “Responsible

ment requirements.

Consumption and Production” (SDG 12).

We have created an official ­MAHLE standard on the calculation of“Mechanical Recyclate / Recycled Content” to better understandthe topic and our possible levers to increase the recycled content.
It emphasizes continuous reuse, recycling and regeneration of
products and materials with the aim of creating a closed-loop system that reduces environmental impact and fosters sustainability.
At a glance
Hazardous substancesn

MAHLE specified categories for waste reporting

Our management system for hazardous substances strives to re-nOver 110 kt of waste sent to mechanical material recy-

duce and replace the use of carcinogenic, mutagenic, bio-cumu-

cling (> 62 percent of total waste)

lative substances and substances that are toxic for reproduction,
also known as CMR (carcinogenic, mutagenic and reprotoxic

We are further developing our processes to efficiently use mate-chemicals) substances.

rials in our production and packaging processes. For example,
our waste management follows well-established priorities like the

In 2023, we worked on replacing the trichlorethylene used in

scrap pyramid. We strive to minimize scrap and surplus, althoughdegreasing processes in our locations in India. We also successful-

it is not possible to eliminate production waste entirely. That isly replaced the use of N-propyl-bromide in Atlantic – USA.

why the second step in the pyramid, preparation for reuse, is also

24

Climate and Environmenta high priority. We aim to further recycle any waste that cannot

Waste per disposal path in 2023

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 pro-22%
landfill

cesses. 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 developmentof new products. This process also requires plants to assess theenvironmental effects of any changes made to products or processes. Our waste management is regularly monitored and subject toexternal and internal audits. As we aligned our waste accounting in

4%incineration6%
preparation
for reuse

62%
material recycling

6%
thermal orother recycling

2023 to upcoming reporting changes of the new European sustainability reporting standard, the waste amounts cannot be comparedin various categories , so a new table has been made. The reduction
is caused by continuous improvement and better data availability.
Waste 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

Overall generated waste as measured against sales
Waste 2023
Type

Unit

2023

Non-hazardous waste for incineration

tons

2,022

Non-hazardous waste for landfill

tons

33,564Non-hazardous waste for material recycling

tons

94,555Non-hazardous waste for thermal or other recycling

tons

5,786

Non-hazardous waste in preparation for reuse

tons

3,218

Hazardous waste for incineration

tons

4,797

Hazardous waste for landfill

tons

5,626

Hazardous waste for material recycling

tons

16,671

Hazardous waste for thermal or other recycling

tons

4,894

Hazardous waste in preparation for reuse

tons

7,469

Overall generated waste

tons

178,601

tons/EUR million sales

14

Relative waste as measured against sales

25

Water and wastewater

In 2023, we conducted a risk-based assessment of relevant operating sites to identify water stress locations: 12 locations are in

The water management activities of MAHLE contribute to the
Sustainable Development Goal (SDG) “Clean Water and Sanitation” (SDG 6).

areas of extremely high water stress, with a focus on Asia. These
locations are responsible for a withdrawal of about 896 megaliters (15 percent) in 2023. An additional eight locations are in areas with high water stress. These locations are responsible for506 megaliters (8 percent) of water withdrawal in 2023. In total,
our locations in areas with the highest or high water stress are responsible for 23 percent of our overall water withdrawal. ­MAHLE
sets site-specific targets for water management that are pursued
within the environmental management systems of the location.
In 2023, we mainly utilized municipal water and groundwater. We
also further extended the use of water in a circular way so as to

At a glancenn

MAHLE conducted a water risk assessment and identi-

not waste it – for example, it was used as rinsing and cooling wa-

fied 20 plants with high and very high water riskster. Total water withdrawal decreased by 34 percent in 2023. One

MAHLE improved its CDP water rating to Bof the reasons for this is a change in water accounting. Groundwater extraction for the use of geothermal energy and remedia-

We improved the group-wide water reporting system in order totion purposes is not included anymore as this is not consumption

make water consumption management more transparent. Theof the water itself but just a use of its energy. The definition ofwater KPIs for each location are accessed via our global HSE da-

recycled water changed from recycling by third parties to recy-tabase. The reporting categories have been adapted to be in line

cled water at our sites. In the long term, we intend to ­intensify

with the upcoming European sustainability reporting standard.

our water management activities to reduce water consumption.

Water withdrawal in 2021 / 2022 / 2023
Water source

Unit

2021

2022

2023

ChangeMunicipal water

ML

3,596

3,738

3,599

–4%

Groundwater

ML

4,351

5,128

2,372

–54%

Surface water

ML

84 5

84 5

65

n.r.

Rain water

ML

n.r.

n.r.

12

n.r.

Total water withdrawal

ML

8,285

9,166 6

6,048

–34%

Water source

Unit

2021

2022

2023

ChangeRecycled water / reused water

ML

45

85

69 7

n.r.

5

Including rain water

6

Including 216 ML withdrawn groundwater processed

Recycled water in 2021 / 2022 / 2023

7

Change of scope from third-party recycling to on site recycling

26

Working at ­MAHLE

Working at M
­ AHLE“People come first!” This motto passed down by our company founders
Hermann and Dr. Ernst M­ ahle still applies today and is reflected in ourcompany philosophy.
People are the basic building block of ­MAHLE and are our mostcountries, extensively deploying the performance

valuable resource. They are key to our future viability in a trans-

appraisal process, which had a completion rate of > 93

forming mobility world. M­ AHLE attaches great importance tofostering a culture of commitment, empowerment, and inclusion,

percent, and starting a global onboarding processn

MAHLE is committed to increasing the representation oftherefore positioning the company as an attractive employer. This

women at executive levels worldwide by 2030: the target

includes investing in employee development, creating a work

is 13 percent for the first executive level and 18 percent

environment where everyone can thrive, ensuring safety andfor the second executive level

equal opportunities, and opposing all forms of discrimination in
the workplace.
Our activities contribute to the Sustainable Development Goal
(SDG) “Decent Works and Economic Growth” (SDG 8).

MAHLE as an attractive
employer
HR Roadmap as cornerstone for strategic HR
In line with our HR Roadmap developed in 2020, we are adapting
existing HR structures and processes to meet the demands ofaccelerated transformation.
Overall, our HR Roadmap focuses on five strategic areas of action:

At a glancen

MAHLE performed a global, group-wide employee survey
to assess the level of employee engagement and enable-nnPurpose & Agility: Enabling a culture of purpose, accountability
and innovation to attract and retain the right talentment within the workforce
MAHLE continues to digitalize and standardize talentnTalent-to-Value: identifying, developing and enabling diverse

management processes at a global level to enhancetalent with specific capabilities and leadership, following aemployee readiness for future challenges. This includes

clear talent-to-value logic

implementing a global online learning platform in 30

Purpose & Agility
Culture and new ways
of working

Talent-to-value& BusinessBusiness-driven talentmanagement

Performance
Recognition
Performance andcompensation
management

Disruption
Architecture
Organizationalchange anddesignAcceleration of
Efficiency
HR operations
excellence

27

n

n

n

Performance Recognition: next generation performance man-

Talent acquisition and retention remain key

agement to drive business priorities, incentivize performance

Ensuring effective talent acquisition is essential for ­MAHLE toand accelerate results

achieve its strategic goals. In 2023, we introduced a new global

Disruption Architecture: driving and facilitating organizational

onboarding process, which was already piloted in the US and ischange and optimizing the company footprint in times ofset for a global rollout in stages. The process is managed withintransformation

our HR tools and aims to establish a globally consistent standard

Acceleration of Efficiency: providing high-quality, efficient andand outstanding experience for new hires. It will foster a strong

compliant HR transactional operations, services and databond between the company and the new recruit from preboarding
to the first 90 days at ­MAHLE. This initiative benefits all stakehold-

Employer branding in tight market conditions

ers by ensuring a positive first impression, increasing employee

The worsening global shortage of skilled workers requires

motivation, job performance and employee retention, therefore

increased efforts and differentiated approaches to counter it.

making HR more efficient. In the face of a talent shortage, internal

We support local initiatives that introduce young people, espe-

mobility has continued to prove key to quickly filling positions andcially girls, to Science, Technology, Engineering and Mathematics

has provided benefits such as transferable skills and knowledge(STEM) professions at an early stage, helping to build a new gen-sharing. We are continuing to further upgrade our global HR sys-

eration of talent. In G
­ ermany, for example, we traditionally support

tem landscape, including the applicant management system thatthe annual Girl’s Day. South Africa is another example of where

was successfully implemented in 29 countries worldwide.

we have been collaborating with the Center for the Advancementof Science and Mathematics Education (CASME) since 2013.

Our digital recruitment tools offer many benefits for internal andThis center seeks to develop math and science education inexternal candidates. We prioritize candidates by enhancing theschools in rural and under-resourced areas with projects such as

overall candidate experience through transparency, improved

Science2Go. Our commitment to these projects and the public

communication, a standardized selection process and a more

relations excellence associated with them has been recognizedstreamlined hiring process. We also help our employees up-skill

by the International Public Relations Association (IPRA) with theand re-skill with a new digital and sustainable solution that offers“Golden World Award.”

all employees worldwide an online learning platform that isaccessible anytime and anywhere. By doing this, we are pro-

Our employer branding activities position ­MAHLE as an employer

moting individual and continuous training. Retaining new andof choice among our target audiences. We are engaging tal-

existing employees is equally important. The introduction ofent through diverse media channels and face-to-face contact,

new leadership principles in 2020 and the ongoing adaptation

highlighting our diverse and international teams. In 2023, weof our broad range of development opportunities helps to create

received several awards, including the “Potential Park Award,”

a work culture that binds our employees to the company. This

“Best Recruiters” and “Leading Employers.” ­MAHLE was also

is complemented by retention measures designed specificallyrecognized as a “MINT minded Company” and “Diversity Leader”

for individual employee groups, ranging from employee assis-

by being one of the top employers for promoting women in thetance programs for newcomers, to reintegration measures after

company.

extended absences, and a range of flexible working options.
Accordingly, our monthly average employee turnover rate for2023 stayed almost unchanged compared to the previous year
at 1.6 percent. This is despite the increasing movement on thelabor market after the pandemic.

28

Working at ­MAHLE

New working culture

We also foster hybrid working models that include both on-site

As a company, we are committed to providing a work environ-and remote working as part of a state-of-the-art working culture.

ment that positively impacts performance, employee satisfaction,

Our approach allows employees to perform their job where they

engagement, and retention.

will be most productive and where they can align their working
style with their individual needs. This strengthens a global work-

Therefore, in 2023, we implemented a new global employee sur-ing culture that is characterized by flexibility, self-management,

vey to assess the level of employee engagement and empow-

trust and personal accountability. We contributed to hybrid work-

erment within the workforce. This survey helped us identify key

ing by rolling out a Global Remote Working Guideline and several

strengths of our organization, but also areas where we canworkspace pilots, including desk sharing concepts and open

improve. Targeted and tangible actions are and will be imple-

space offices. By creating modern and inspiring workspaces that

mented across all levels of the organization based on employee

are efficient in terms of space utilization, we strive to maintainfeedback. The aim is to shape an even better place to work.

our attractiveness as an employer, contribute to improving ourcarbon footprint and reduce infrastructure-related costs.

29

Our employees
Employee development

Thermal Management in Mexico. After a stronger increase in the

At the end of 2023, 72,373 employees were working for thenumber of employees in South America in the previous year, the­MAHLE Group worldwide. This corresponds to a year-on-year

number of employees decreased slightly in 2023. In Asia-Pacificincrease of 427 employees, or 0.6 percent. The main reasons

we recorded a decrease of headcount, while Africa had slightly

for this development were our organic growth, especially in fu-

fewer employees overall.

ture-oriented areas, a good order situation, strong production
capacity utilization, particularly in North America, and the in-

Types of employment

creased expansion of our shared service centers worldwide.

While most of our global workforce is permanently employed andworks full-time, we also employ 1,317 members of our staff on a

After several years of decreasing personnel in our European

part-time basis, of which 68 percent are women.

countries, the number of employees increased in 2023. Thiswas primarily due to the further expansion of the future-oriented

Some workers were hired by the MAHLE Group temporarily­Electronics and Mechatronics business unit and a good orderfrom external service providers in 2023. This figure is driven bysituation in all business areas.

different market conditions in the regions. For instance, increasing orders in Western Europe led to a short-term increase in the

In North America, most of the increase in the workforce relat-

number of loaned and temporarily employed production per-ed to the business units of Filtration and Engine Peripherals andsonnel in order to instantly meet demand.

Headcount & sales development 2016 – 20238
14,000,000 Sales in EUR k
12,000,000
Headcount 80,000

76,632

78,27779,56477,01572,18470,00071,29871,947

72,373

10,000,000
8,000,000

60,00050,0006,000,000

40,0004,000,000

30,00020,0002,000,000

10,000
0
2016
8

2017

2018

2019

2020

2016 – 2020 not audited

2021

2022

2023

Headcount development

0

Sales development in EUR k

Total number of employees per region (headcount), total sales by region and per employee
RegionEuropeNorth
AmericaSouth
America

AsiaPacific

AfricaTotal

Total employees

31,69015,314

8,435

16,141

793

72,373

Change to previous year (absolute)

+525

+545

–328

–291

–25

+427

Change to previous year (in %)

+1.7%

+3.7%

–3.7%

–1.8%

–3.1%

+0.6%

5,891,980

3,562,269

758,5292,547,781

57,26812,817,826

185,926

232,615

89,926

157,845

72,217

177,108

Total sales in EUR k
Sales in EUR per employee

30

Working at ­MAHLE

Number of employees per type of employment and by region (headcount)9
RegionPermanent
Employees

Temporary
Employees(≤ 3 months)

Temporary
Employees(> 3 months)

Apprentices

Part-time

Total
Employees

Europe27,028

286

1,939

637

1,250

31,140

North America

14,964

7

27

0

37

15,035South America

8,183

0

0

159

0

8,342

Asia/Pacific

12,184

5

259

122

29

12,599Africa

744

28

1

0

1

774

Total

63,103

326

2,226

918

1,317

67,890

Number of employees per type of employment and by gender (headcount)9
Gender Key

Permanent
Employees

Temporary
Employees(≤ 3 months)

Temporary
Employees(> 3 months)

Apprentices

Part-time

Total
Employees

Male

46,747

190

1,460

769

425

49,591

Female16,346

136

766

149

892

18,289Others

10

0

0

0

0

10

Total

63,103

326

2,226

918

1,317

67,890

Number of new employee hires by age group, region and gender (headcount)9
Region< 18 years

18-29 years

30-49 years

50-64 years> 65 years

Total

Europe

55

1,432

1,534

303

5

3,329

20

472

593

112

1

1,198

1

3,088

2,693

461

27

6,270

0

1,068

1,039

183

8

2,298

0

492

341

14

0

847

0

79

82

0

0

161

0

521

494

26

0

1,041

0

112

137

4

0

253

0

1

6

1

0

8

0

0

4

1

0

5

56

5,534

5,068

805

32

11,495of which female
North Americaof which female
South Americaof which female
Asia/Pacificof which female
Africaof which female
Total Employee data of the following sections cover 94% of global employees included in our HR group reporting.
Not included: inactive employees, joint ventures.

931
Percentages of employees covered by collective bargaining agreements916%36%EuropeNorth America
64%
84%

3%

35%

South America

Asia / Pacific97%

Numbers of employees covered

65%

Numbers of employees not covered

We consider it our responsibility to provide young people withthis corresponds to a higher proportion of women compared toon-the-job education and state-of-the art apprenticeships. There-

the proportion of women in the total workforce (27 percent). The

fore, 918 apprentices and numerous interns were trained at many

hiring figures were driven by the development of individual regionsof our sites worldwide in 2023. Internships do not only offer edu-

with high growth targets. The worldwide focus also continues tocational benefits but also the opportunity to gain experience andbe on internal recruiting to provide employees with opportunities

develop professionally. During an internship, students gain valu-

for career development through internal mobility.

able insights into our daily business, so it is also an important opportunity for us to position M­ AHLE as a future employer of choice.
Apprenticeships are offered in various business-, technical- andRepresentation of employees

production-related occupational fields and lay the foundation formany of our much-needed professions. Our aim is to facilitate

We believe it is important to have trusting relationships with ourpermanent employment in the company after a successful intern-

employees and their representatives. We communicate regularly

ship or apprenticeship whenever possible.

and openly on business developments and initiatives throughvarious internal communication channels, such as our employee

Newly hired employees

app or the intranet. We are trying to implement inevitable head-In the year under review, 11,495 new employees were hired world-count adjustments or site closures in a socially responsible

wide, of which 3,915 (34 percent) were women. Encouragingly,­manner. In most countries and locations, there is local employee

32

Working at ­MAHLE

representation with whom we cooperate closely. Globally, theaccessible to all employees and is constantly being updated.

working conditions of more than 71 percent of our workforce

New features include employee access to external libraries fromare subject to collective bargaining agreements. In Germany, inbusiness or private devices, expanded language courses andaddition to the location-based Works Councils, a Central Workse-mobility training modules. Each training module reflects theCouncil r­epresents the overriding interests of the workforce. The

competencies defined in our new ­MAHLE Competency Model.

employee representatives from our European locations also send

The competency model provides clear guidance to all employ-delegates to a European Works Council.

ees in their professional and personal development as it identifies the competencies that are essential to the success of theindividual, the team, and the entire organization in the ongoing

Learning and development
Talent management framework
In terms of talent management, we have continued to roll out our“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, global process that sets standards
for performance evaluation and recognition, contributes to abetter feedback dialogue between managers and employees,
and provides guidance for individual career development. One
key element of the Talent Cycle is the Annual Performance andDevelopment Dialogue, in which employee and manager alignon individual goals, discuss strengths and development needs,
and agree on development goals. In the year under review, thecompletion rate for the Performance and Development Dialogue
within the Talent Cycle was 93 percent.
Redesigned learning and development landscapeOur employees’ expertise and commitment drive our longterm success. We are consistently investing in the training
and development of our workforce and further expanding ourglobal training offering. Our employees worldwide took part ina total of 76,464 qualification measures (2022: 72,056).
As part of the ­MAHLE learning and development landscape, welaunched a new global learning system that gives employees in
29 countries easy access to a large range of learning offerings. A
comprehensive global training and development catalogue that
includes cross-functional and career-related learning content istransformation. The model is based on our corporate strategy,
our vision and our leadership principles and takes the dynamicchanges of our business environment into account.
MAHLE is committed to the principle of life-long learning andwill continue to empower our global workforce with the skills
needed in a transforming mobility world. Targeted training andqualification programs support our employees and managers
in their necessary re-skilling and up-skilling toward future job
profiles and new areas of competence.

33

Diversity, equal opportunities
and non-discrimination
Diversity, equal opportunities and non-discrimination are firmly
anchored in our corporate values as an internationally operating company. We appreciate our global workforce, regardless ofgender and gender identity, nationality, ethnic origin, religion or
belief, disability, age or sexual orientation.
We promote the diversity and inclusion of our employees’ different experiences and backgrounds and see this as an opportunity. Diversity & Inclusion (D&I) helps us perform more innovatively
and support our business goals. ­MAHLE made a group-widecommitment to promoting D&I and implementing 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 affirm our commitment toa discrimination-free workplace and to set rules and guidelines
regarding the prevention of harassment. Our North American
location initiated two employee resource groups for womenand cultural diversity. They meet on a regular basis to work on
local D&I initiatives and establish affinity groups. The ­MAHLE
site in St. Michael ob Bleiburg in Austria has been awarded theWe make a difference by awakening
empathy. We believe that embracing
diversity and fostering inclusion enables
us to achieve greater things together.
Nos Program
Itajubá, Brazil“equalitA” seal of quality. The award from the Austrian Federal
Ministry of Labor and Economics recognizes exemplary internalmeasures to empower women and promotes companies thatare committed to equal opportunities and equality. Our locations

In order to underline the importance of diversity, equal opportuni-

in Sempeter pri Gorici, Ljubljana, and Maribor in Slovenia also

ties and non-discrimination to our business success, we contin-

retained their Family-Friendly Enterprise certificate (Druzini pri-ued to expand our global learning offerings to include D&I learning

jazno podjetje).

paths and a virtual D&I learning toolbox in multiple languages.

34

Working at ­MAHLE

Gender diversity (direct employees)
0%

20%

40%

Gender diversity (indirect employees)
60%

80%

0%

100%

20%

40%

60%

80%

Europe35%65%Europe26%

74%

North America

35%

65%

North America

22%

78%

South America

19%

81%

Asia/Pacific

22%

78%

South America
Asia/Pacific

11%

89%

22%

Africa78%
44%

Female56%

Male

Africa34%
Female66%
Male

Age diversity (indirect employees)

Age diversity (direct employees)
17%

15%

27%

27%

Directemployees

Indirect
employees
56%

under 30 years old

100%

30-50 years oldover 50 years old58%

under 30 years old

30-50 years oldover 50 years old

We demonstrate our clear commitment through ­continuous inter-

employees are between 30 and 50 years old, the overall average

nal and external communication, and we celebrate our diverse

age of our global workforce was 42 years in 2023. We see age

workforce with a range of activities each year. For example, on

diversity as an advantage for ­MAHLE and are proactively foster-International Women’s Day we held global online live sessions

ing cross-generational teams. We encourage teams to co-create

about how to embrace equity and a global role model campaign

initiatives that combine past learnings with new innovations forentitled “You make the difference” on Diversity Day.

greater efficiency.

Diversity of our global workforce

Targets for the proportion of women on the Supervisory

Employees from 5 business units, 148 production locations andBoard and Management Board

11 Tech Centers work together at MAHLE. Overall, 27 percent of

MAHLE GmbH set a target of 20 percent female representation

our employees are women. In the benchmark, we are well withinon the Supervisory Board, and this target was achieved in the

our industry average. The proportion of women in production

reporting period. In April 2022, the Supervisory Board stated:(direct employees) is 29 percent and in administration (indirect
employees) 24 percent globally.

”For the period until 30 June 2025, the target figure for the proportion of women on the Supervisory Board is set at 25 percent.

At ­MAHLE, diversity not only means working together across five

The target figure for the proportion of women in the Management

continents and multiple cultures, but it also stands for collaborat-

Board of the ­MAHLE GmbH is set at 29 percent by 30 June 2027

ing in mixed teams across multiple generations. As most of our(which currently equals 2 out of 7 members).”

35
Proportion of female executives worldwide

partner to foster a better balance for women and men on parental

Globally, 15 percent of all leadership positions were filled withleave. The program offers permanent networking and education

women at the end of 2023. On the first executive level below

for a smooth re-entry to work. We monitor our efforts with the D&I

the Management Board, we had 8.4 percent of women. On the

Dashboard twice a year. It is a global management tool for key D&I

second executive level, 11.1 percent of the positions were held

indicators, focusing in particular on the achievement of our targets

by women. This corresponds to a continuously positive develop-

for female leaders.

ment over the last few years.
Fair pay and voluntary benefits
Proportion of women on first and second executive level

11

With regard to working conditions, we have implemented different organizational measures to meet the applicable statutory

10.2%
8.3%
6.3%

8.4%

7.0%

recently implemented new best-practice global bonus schemes
to ensure that remuneration is determined by the requirements

2018

2019

2020

First Executive Level
11

nerated fairly and in line with market conditions. Therefore, wefor both our executives and managers. The new schemes aim

5.3%

3.2%
2017

regulations and any rules connected with labor agreements at
our locations. We strive to ensure that our employees are remu-

8.3%
6.2%

11.1%

8.4%

6.8%

5.3%

11.2%

2021

2022

2023

Second Executive Level

2017 – 2020 not auditedof the transformation.
In addition to the benefits provided for under law and in labor
agreements, we also offer notable supplementary benefits at
many locations. For example, in Germany, employees canbenefit from an attractive, company-funded pension scheme.

New targets for the proportion of women on firstand second executive level
Our commitment to an inclusive and appreciative work environment was reinforced by the adoption of a new group-wide
D&I strategy in 2021. A central element of the new D&I strategy
is promoting women to management positions. To achieve amore gender-balanced ratio in the company’s executive ranks
and to affirm our social commitment to ESG responsibility, we
extended our targets for women at both executive levels below
the ­MAHLE Management Board in 2023. Our new goal is toincrease the proportion of women to 13 percent on the first
executive level and to 18 percent on the second executive levelglobally by December 31, 2030.
A mix of various HR measures, such as a more targeted focus on
female successors in the event of replacements, development andrecruiting, female empowerment programs as well as a range of
flexibility offers will help us to achieve these goals. In particular, weenhanced our female empowerment program with the first global
conference for female leaders on the topic Inclusive Leadership as
well as the global and local online networking events for women.
We also launched a pilot project in cooperation with an external

Moreover, ­MAHLE increasingly provides additional health careand insurance benefits. For example, we offer an annual healthcheck and an employee assistance program to the entire workforce in China and best-practice health insurance in both theUnited States and South America.
Eliminating pay gaps
In order to ensure a good working atmosphere and fair employment conditions, we endeavor to close any gender pay gaps
and to prevent them from the outset. As a company that isbound by labor agreements in many regions, we strive for equalpay conditions regardless of gender. Evaluation and remuneration systems across the organization are designed to be freeof gender bias and are based on technical criteria. In several
countries, we are required by law to work to counter gender
pay gaps. In Germany, for example, we prepare a corresponding
report in accordance with the Transparency in Wage Structures
Act (Entgelttransparenzgesetz).

36

Occupational Health and Safety

Occupational Health and Safety
According to the guiding principle formulated by our company founders, ourcore responsibility is the well-being of our employees. Therefore, we proactively
tackle occupational safety across the group and raise awareness among our
employees to keep occupational risks to a minimum.

At a glance

At corporate level, the Sustainability & Occupational Health, Safety

MAHLE safety target set for 2030 with a lost time injury

and Environment function coordinates and monitors health andrate of 2.3 per one million hours of worksafety at work activities worldwide. On-site Occupational Health,n

The lost time injury rate fell to 2.8 in 2023

Safety and Environment (HSE) representatives are responsible forn

In 2023, another 20 of our plants were certified in accor-

implementing safety measures in consultation with the regional

dance with ISO 45001

and business unit HSE managers. Operational responsibility lies

Global machine safety and occupational risk assessmentwith the respective location managers. Our locations also havestandards released

safety committees comprising members of management, em-nnployee representatives, if applicable, and the locations’ respective
Principles of Safety at Work, our ‘Goldes Rules’

HSE representative. Their job is to manage and monitor occu-

Our global guidelines for sustainable occupational health and safe-

pational health and safety issues and to establish measures forty, environmental and climate protection provide a framework forcontinuous improvement. Employees participate in finding the root

consistent occupational health and safety management through-cause of incidents, cases of non-conformity or near-misses and inout the whole group. The following three ‘Golden Rules’ have been

establishing corrective actions. In practice, all kinds of occupation-

our basic safety rules to provide clear guidances to our employees:

al risks at workplaces must be identified, assessed and addressedby the head of the respective department, with support from the

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

HSE experts.

2. I Care – We Care: we are all responsible for ourselves and forothers.
3. Walk the Talk: safety is not something we just talk about – itmust also be reflected in our actions.

In 2023, an additional 20 of our plants were certified in accordance with the ISO 45001 standard. This brings the number of
ISO 45001 accredited locations up to 123.

In the ­MAHLE Business Code, we pledge that we will act inaccordance with the applicable standards regarding health andsafety at work and environmental protection. Regular training
sessions and instructions are designed to prevent accidents andminimize risks. All this helps to achieve the Sustainable Development Goal (SDG) “Good Health and Wellbeing” (SDG 3).

ISO 45001 certified locations 2023
Europe55

North America

17South America

8Asia/Pacific

43

Total

123

37
Our objective: to reduce the accident rate

Our activities to improve occupational health and safety can be

MAHLE works with individual target agreements in the plants

grouped into three main safety initiatives:in order to continuously reduce the number of accidents. Until
2023, we used DART (Days Away Restricted or Transferred) as

1. Safety Culture

our accident rate definition. The DART rate takes into account

2. Machine Safety

accidents leading to days away or restrictions or transfers to

3. HSE Support and Internal Auditing

other workplaces per one million working hours.
As part of our group-wide initiative on safety at work, ­MAHLE
In 2023, we adapted the definition of our accident rate fromresumed regional training programs to improve the leadershipthe DART rate to the globally used LTIR (loss time injury rate). It

culture and to intensify existing global and regional safety cul-

takes into account only the number of accidents at work with atture programs. In the programs, we emphasize that safety takes

least one day of absence in relation to the hours worked, stan-absolute priority at M
­ AHLE and that managers have a special

dardized at one million working hours.

responsibility to ensure safety at the workplace. Special training sessions on the safety responsibilities of managers started inGermany and have been extended as mandatory training for all

Development of DART accident rates12 globally until 2022 13
0

1

2

4

3

5

6

America region has conducted workshops focused on learning

4.8

2019

about appropriate measures to be considered, following the socalled lockout / tagout (LOTO) principle during maintenance ac-

3.7

2020

tivities. More than 600 employees and contractors were trained

4.2

2021

Various activities have been performed to improve safety during
maintenance activities in several regions. For example, our South

5.7

2018

German managers to raise awareness.

in 2023.

3.5

2022

As part of our safety initiatives, we provide ongoing training toemployees and work continuously on developing a safety culture that reflects our rule: “I Care – We Care.” We encourage ourDevelopment of LTIR accident rates14 globally from 202215
0

1

3

2

4

3.0

2022
2023

employees to report near misses or, where possible, eliminate

2.8

potential risks. The global Machine Safety Guideline was also
released. This guideline is the worldwide ­MAHLE standard for
improving machine safety and reducing accidents with technicalcauses. A training program has also been resumed to increase
machine safety knowledge in our HSE community.
Together with the rollout of a new HSE and sustainability software,

By 2030, we want to reach a global LTIR of 2.3. In order to

we standardized the processes to perform appropriate safety

achieve this, we have established individual annual plant targets

risk assessments for our workplaces.

for all business units until 2030.
After reducing the accident rate in 2022, we managed to reduce
our accident rate to 2.8 in 2023.

12

DART accident rate considering accidents leading to Days Away
or Restrictions or Transfers per one million working hours (≥1 day)13

2018-2020 not audited

14

LTIR accident rate considering accidents leading to days away
per one million working hours (≥1 day)

15

2022 not audited

38

Occupational Health and Safety

1,000 days without accident – Hungary plant wins Safety Excellence Award
December 6, 2023 marked 1,000 days without a recordable accident at ­MAHLE Balassagyarmat, ­Hungary.
To honor this achievement, the plant was awarded the ­MAHLE internal Safety Excellence Award. Various
measures have improved the staff’s work safety. In addition to a new fire alarm and sprinkler system, theparking space for commuting buses was redesigned to avoid accidents. Minor safety precautions suchas handrails, fall protection and improvements to production and warehousing were also installed. The staff
were also taken into account as the suggestion scheme was improved, employee health screening was
conducted and first aid training was fostered.

Dealing with incidents
We have clear policies for the proper handling of work-relatedby the impact of an incident, we would inform them at the earliest

hazards. If an incident is reported, we classify it according to its

opportunity.

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

Serious accidents, their causes and the effectiveness of the im-business partners. Incidents that may cause a severe hazard toplemented corrective measures are evaluated by the regional

the wellbeing of our employees or production and meet defined

HSE management team together with the affected plant. Afterinternal criteria are classified as hazardous events. As such, theanalyzing the accident, the corrective and preventive measuresplant management must report them immediately to the head ofare discussed with all parties involved, up to and including thethe business unit, the relevant central departments, all members­MAHLE Board Member responsible for HSE. The results and les-of the M­ AHLE Management Board and Corporate Communica-

sons learnt are shared with all plants. This supports the continu-

tions. A dedicated hazardous event alert process has been estab-ous learning process that reaches beyond the limits of individual

lished. If our business partners were directly or indirectly affected

locations, preventing similar incidents from happening elsewhere.

39

Sustainability in the Supply Chain
Compliance and sustainability requirements as defined in our Supplier Codeof Conduct need to be confirmed by all 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.

Our ­MAHLE Purchasing has a clear understanding of responsibility

hurt ­MAHLE in the form of supply disruptions and quality andin the supply chain. Due to rising demands in customer requests

cost losses, or it may damage our reputation, besides the harmregarding conflict minerals and decarbonization and the new Act on

inflicted on the planet and on humans. Actively managing sus-

Corporate Due Diligence Obligations in Supply Chains (Lieferket-

tainability aspects in the supply chain reduces these risks. More-tensorgfaltspflichtengesetz, LkSG), we have further strengthened

over, suppliers who operate sustainably often prove to be reliable

our activities in this field of responsibility. Therefore, the prerequi-

and innovative partners in the long term.

site for conducting business with ­MAHLE remains unchanged: fullcompliance with our sustainability requirements – from the produc-The ­MAHLE supplier networktion of materials to their impact on people, the environment, andOur network comprises around 7,000 direct suppliers for our

the working conditions at supplier companies.

production materials alone. The most important supplier coun-

Our activities contribute to the Sustainable Development Goal
"Responsible Consumption and Production" (SDG 12).

tries are China, Germany and the United States. We procure raw
materials, semi-finished goods and prefabricated items, ranging
from simple plastic parts to complex mechatronic and electronic assemblies. In the automotive industry, it is important to fulfill
global quality standards for our products. Doing this and remaining competitive require us to source materials from global ­supply
markets.
Sustainable Purchasing

At a glancenCreation of the new “Supplier Management and Governance” department to work more effectively on sustainability topics in the supply chainn

MAHLE joined the Responsible Supply Chain Initiative(RSCI)

Supplier management

In view of the complexity of our supply chain, we have taken
measures to harmonize our sustainability activities across thegroup in recent years. For instance, we created a Strategic­Purchasing function to take care of sustainability in the supply
chain. In October 2023, we consolidated capacities from different teams of Strategic Purchasing and Supplier Quality andcreated a new department called “Supplier Management andGovernance” so that we could become more effective in all sustainability topics.

Our supply chain is key to the achievement of our sustainability

Our Purchasing Academy provides the most important informa-goals. Therefore, it is crucial that suppliers act in accordance withtion about sustainability for our employees in Purchasing. We also

the standards defined by M
­ AHLE, which are based on legal andoffer our employees online training modules so they can better

customer requirements. As an example, if suppliers contracted

understand and actively discuss the recent challenges regardingby ­MAHLE violate social or environmental standards, this may

sustainability and environmental and human rights protection.

40

Sustainability in the Supply Chain

A Sustainable Purchasing Policy was created in 2022 to under-nline the sustainability expectations and aspirations of our Pur-

Working conditions: working hours and holiday, occupational
health and safetychasing department. The policy gives guidance to our buyersnProhibition of corruption and bribery

and refers to our grievance mechanism in case of violations.

nFair and free competitionnData protection and confidentialitynEnvironmental and climate protection: reduction of greenhouse

Regular Supplier Sustainability Board Meetings in Purchasing areconducted to guide the Purchasing and Sustainability Team andgas emissions, material compliance (e.g., REACH, RoHS)

to confirm or decide on specific actions that may be derived fromn

Exclusion of conflict minerals

our Supplier Risk Analysis, for example.

nWhistleblower platform for reporting violations against theserequirements

The Responsible Supply Chain Initiative
MAHLE has been a member of the Responsible Supply Chain

MAHLE has also adjusted the existing web-based ­whistleblower

Initiative (RSCI) since the start of 2023. The initiative was foundedsystem (“Integrity Platform”) to ensure that any violations of theseby the German Association of the Automotive Industry (VDA) andrequirements in the supply chain can be reported to ­MAHLE bysupports its member companies in implementing the German

any person.

Supply Chain Act. This act obliges companies to assess humanrights and environmental risks along the value chain and to takeWe provide supplementary information on our procurement andappropriate measures to prevent and reduce them. In essence,

supplier management in the ­MAHLE Supplier Guideline. The

the RSCI developed a special audit catalogue and an exchange

guideline includes additional instructions for suppliers in selectedmechanism for a standardized sustainability assessment.

business areas and regions that depend on legal regulations or
specific customer requirements. For example, in the US we work

The Supplier Code of Conduct

with minority-owned companies.

We aim to guarantee human rights within our global supply chains,
avoiding child labor, inadequate labor law protection, exploitation,

Supplier registration, assessment and approvaland discrimination, for example. ­MAHLE not only opposes such

We focus on sustainability aspects when assessing our suppliers.

violations but proactively practices and stands up for fairness andUpcoming regulatory requirements such as the German Supply

responsibility. These values not merely determine how we deal with

Chain Act confirm that due diligence is crucial to identifying sus-

each other and work together, but also apply to our relationships

tainability risks early on. We rely on state-of-the-art technology

with customers, suppliers, and other business partners.

for tracking and monitoring human rights compliance, labor practices and environmental issues. The aim of this is to identify po-

To ensure compliance with statutory provisions and ethical princi-

tential risks in our supply chain at an early stage. When selecting

ples within its own supplier base, M­ AHLE has developed the Sup-

suppliers, one factor we consider is their compliance with certified

plier Code of Conduct for all suppliers of the M­ AHLE Group. It was

quality and environmental management standards, which are as-

updated in 2022 to comply with increased expectations and regula-sessed as part of the initial audits. The initial audit must be passed

tory demands, such as the German Supply Chain Act.

successfully to be considered in our supplier panel. We also introduced uniform supplier scorecards in our common Supplier

MAHLE suppliers must accept our Supplier Code of Conduct andPortal to facilitate the self-assessment of suppliers.

are expected to enforce our guidelines in their own supply chain. It
contains requirements in the following areas:

When registering new suppliers, we request that they provide theirvalid certifications via the Supplier Portal. These may include IATF

n

Human rights: prohibition of forced or child labor and slavery or

16949, ISO 9001 and ISO 14001. We also assess them regu-

human trafficking, protection of local communities and indig-

larly after they are commissioned and require certificates to be

enous peoples, promotion of equal opportunities, protection

renewed on a timely basis.

from discrimination and freedom of association

41
Risk management in the supply chain­ensure compliance with statutory provisions and ethical, social,

We use a software system that allows us to monitor risks thatand environmental principles in the industry.

may arise in the supply chain. This is based on more than 75
indicators in different areas, ranging from key financial figures to

By participating in the “Easy on the Planet” program of the Lyreco

location indicators and figures relating to environmental or social

Advantage company, ­MAHLE was able to increase the sustain-

aspects. The continuous monitoring means that our purchas-able purchase of office materials significantly and therefore con-ers and, in case of human rights and environmental alerts, ourtributed to the planting of new trees.

Sustainable Purchasing Team receive an early warning of any
increased risk. This enables us to promptly respond with the ap-

Critical Raw Materials

propriate countermeasures. The risk management tool currently

MAHLE implemented a process that consists of identifying andmonitors more than 80 percent of our expenditure in this area.

better managing risks throughout the entire mineral supply chain.
For example, conflict materials are mined in conditions of armed

We also carry out sustainability assessments based on our an-

conflict and human rights abuses, so we handle them with spe-

nual risk analysis. This analysis is based on country, industry

cial diligence. In 2022, we formalized our ambition in regards toand internal M­ AHLE material group risks conducted on aroundconflict minerals in our Conflict Raw Materials Guideline for Sup-

40,000 suppliers. The results are used to conduct a concrete

ply Chain. It describes our expectations toward our direct suppli-

risk ­analysis that is a more supplier-specific analysis and is ap-

ers, but also the various other stakeholders in the supply chain.

plied to approx. Ten percent of the supply base. Some of our

The guideline is an integral part of our purchasing conditions.

tools are the ­MAHLE Supplier Code of Conduct, sustainability
assessments or Corporate Social Responsibility (CSR) audits.

In addition to that, we are improving our internal processes to

The outcome of the concrete risk analysis has an influence on

increase transparency and the quality of supplier responses by

our sourcing decisions. So far, no child nor forced labor violations

specifying our expectations. Our process is based on the OECD

have been identified.

(The Organization for Economic Co-operation and Development)
Due Diligence Guidance for Responsible Supply Chains of Min-

Furthermore, we use the outcome of the risk analysis as a pre-­erals from Conflict-Affected and High-Risk Areas. All affected

selection for conducting CSR audits.

suppliers must provide an official Conflict Mineral Reporting Template (CMRT) and Extended Minerals Report Template (EMRT) to

Sustainability rating plays an essential role in defining our suppli-­MAHLE. In cases of non-compliance with our due diligence red

er panel, e.g. when approving new suppliers or during the con-flags, an escalation process will be started. Red flags include,tracting process. In addition to the supplier’s sustainability rating

for example, origin from high-risk regions, incomplete supplier(including human rights and environmental aspects), financial

responses or non-certified smelters.

stability and other governance criteria are also considered in our
supplier nominations.

The annual CMRT campaigns have been expanded and now include cobalt and mica, a group of 37 types of silicate minerals, inIn the event of a clear violation of our Supplier Code of Conduct,order to meet increasing external requirements. In 2023, M­ AHLE

we urge the supplier to remedy the problem and report serious

reached a score of 92 percent in the Conflict Minerals Reporting

compliance violations to our Compliance Office for appropriate

Templates in the Supplier Assurance (Drive Sustainability) Plat-

action. If the supplier does not resolve the issue, we would ulti-

form. We have established internal processes to continuously

mately remove the supplier from our supplier panel.

increase the number of conflict-free smelters.

Current initiatives

Our Conflict Mineral Reporting Template (CMRT) and Extended

MAHLE is an active member of the Automotive Industry Dialogue

Minerals Report Template (EMRT) are uploaded to the Supplierof the German Association of the Automotive Industry (VDA) and

Assurance Platform every year. This platform checks and vali-

joined the Sustainability in the Supply Chain working group to

dates them in the area of “Responsible sourcing of raw materials.”42

Human Rights

Human Rights
As a foundation-owned company, M­ AHLE has always had a sense for social
responsibility. This is reflected in the strategic topic of Human Rights, whichconnects various due diligence processes throughout our business activities.

At a glancenProtection of human rights is a cross-cutting responsibility for M­ AHLEn

Implementing the requirements of the German Supply
Chain Act was the focus of our human rights due diligence
activities

Upholding human rights, combating child and forced labor, andrespecting employees’ freedom of association are self-evident
principles for ­MAHLE and are supported by our due diligenceprocesses. This is reflected in our sustainability strategy by thestrategic topic of Human Rights, which connects various due diligence processes throughout our business activities. It contributes to the Sustainable Development Goals “Gender ­Equality”,(SDG 5), “Decent Work and Economic Growth” (SDG 8) and­“Reduced Inequalities” (SDG10).

ics. Oversight of our human rights strategy and actions remains
with the Sustainability Steering Committee.
Social responsibility is very important to MAHLE, so the “Principles of Social Responsibility in the ­MAHLE Group” were introduced in December 2022 and will be continuously developed
and revised. The principles provide for mandatory high standards
regarding human rights, including the rejection of forced andchild labor, working conditions, and cooperation with employees
and their representation bodies in accordance with the relevantInternational Labor Organization (ILO) conventions. These principles must be observed within the ­MAHLE Group and along the­MAHLE supply chain.
The ­MAHLE Business Code also imposes an obligation on thecompany and its employees to comply with all the laws and regulations applicable in their respective working environments, including regulations designed to prevent forced and child labor.
Any violations will be subject to disciplinary action under theapplicable labor law. Policies are in place to identify risks bothduring the recruitment process and for the duration of the employment relationship. A candidate’s age and the availability ofimportant documents, such as a residence or work permit, areAt ­MAHLE, we have set up a cross-functional working groupchecked before employment commences.

on human rights including representatives from HR, Purchasing, Sustainability & HSE, Compliance and Risk Management.

MAHLE also has an employee representation structure. Employ-

The working group initiates actions to perform human rights due

ee representatives – with whom ­MAHLE maintains a construc-diligence, such as risk assessments, a whistleblower platform,

tive relationship – are also involved in ensuring human rights are

and training sessions. In 2023, the working group focused on

upheld. Employees who witness violations against human rights

implementing the requirements of the German Supply Chain Act,

have the option to report these violations via our internal reportingwhich came into force on January 1, 2023. ­MAHLE has con-channels, be that via their supervisors, the Corporate or Regional

ducted risk assessments of its own operations and suppliers in

Compliance Office, the external ombudsperson, or by using theterms of human rights. The M­ AHLE Integrity Platform has been

web-based Integrity Platform whistleblower system. Reporting

extended to serve as whistleblower system for human rights top-these violations does not put them at a personal disadvantage.

43

Responsible Corporate
Governance
Responsible business behavior means complying with laws and internal rules
as well as ensuring fair competition. Therefore, compliance has always been
an important element of our corporate governance.

At a glance
Expanded the guide Prevention of Corruption by fraudnOver 98% of targeted employees trained on corruption
and antitrust lawnOver 120 Data Protection Coordinators

Supervisory Board
Auditors

topicsCorporate Auditn

Schematic diagram of risk management at ­MAHLE

Management Board

Risk Management Committee (RMC )Our activities contribute to the sustainable development goal(SDG) “Decent Works and Economic Growth” (SDG 8).

Risk experts
for identificationand evaluation

Corporaterisk
management

Risk owners
for risk
controlmanagement system. This committee defines the top risks forthe company and prioritizes them according to potential finan-

The ­MAHLE risk
management system
Our risk management system covers economic, environmental
and social aspects. In order to identify opportunities and risks
at an early stage and address them proactively, our experts inthe corporate functions and business areas continuously assess short-, medium- and long-term market trends (0-1 year;
1-5 years; 5-15 years). For example, we make use of ­scenario
analyses drawn up by our Corporate Planning department tomodel changes in markets and regulatory frameworks.
The Risk Management Committee, in which members of the­MAHLE Management Board and the Group Risk Manager are
represented, is responsible for managing and monitoring the riskcial impact and likelihood of occurrence based on the evaluation
conducted by risk experts. For each risk identified, the committee appoints one or more risk owners whose task is to initiate
targeted 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
top risks, including countermeasures and risk controlling instruments, in the Annual Group Risk Management Report. This reportmust be approved by the whole M­ AHLE Management Board.
In the event that a hazard occurs despite risk prevention, we havearranged an economically prudent degree of cover by means of
insurance policies for the financial consequences of production
losses and M­ AHLE business interruptions that may be caused byfires and natural disasters, for example. We ensure that specificliability situations, such as environmental issues, are also covered.

44

Responsible Corporate Governance

The relevant risks and opportunities identified in connection withpreventive measures and training concept. We take various

the environmental aspects include mainly new regulatory emission

steps to safeguard the effectiveness and sustainability of our

reduction targets and the increasing environmental awareness incompliance structure, including documenting our compliancethe markets. The automotive industry in particular is f­ acing a trans-

activities, and conducting compliance audits and regular web-formation due to stricter emissions regulations and electrification:

based compliance learning programs.

nn

MAHLE has a large portfolio of emission-relevant segments

MAHLE compliance structuresuch as combustion engine components, so it may experi-

Our decentralized approach to compliance means that all organ-ence reductions in demand for these components, resulting in

izational units, divisions and departments are responsible for thedecreasing sales of the affected products. We see opportunities

processes and compliance risks applicable to their area. The aim

in increasing the efficiency of our components and expandingof this is to uphold laws and internal rules as per the legal compli-

our portfolio of electric drives and auxiliary components.

ance procedure. There are also compliance risk areas for which

Furthermore, as ­MAHLE has production, administration andcentral responsibility is assumed. These include, for example,

distribution sites in various countries worldwide, it faces aantitrust law and prevention of corruption, which are managed

variety of potential environmental risks. We regularly monitor

centrally by the group-wide ­MAHLE compliance department (seethese risks (e.g. fire and other natural hazard risks) and contin-

subsection “Prevention of fraud, corruption and antitrust law”),

uously reduce them by following a long-term strategy. Thisor data protection, which is managed centrally by the Corporate

helps us avoid material damage to our facilities and conse-

Data Privacy department (see subsection “Data protection”). Fur-quential damage such as air and water pollution, and econom-

thermore, the Corporate Sustainability & ­Occupational Health,ically negative impacts on our supply chains.

Safety and Environment corporate function is responsible for handling environmental compliance risks, while the Human Resources (HR) department deals with compliance risks relating to social

Our compliancemanagement system

concerns. Preventive measures, such as guidelines and training
courses, have been implemented in all of these compliance areas.
MAHLE Business CodeThe existing compliance structure is continuously optimized and

We are committed to complying with ethical standards andadjusted on the basis of risk by the ­MAHLE compliance organ-laws in all our business activities. This is based on the M­ AHLE

ization. At group level, we ensure that our conduct and actions­Business Code, which defines the legal and ethical frameworkadhere to laws and internal rules by means of the ­MAHLE com-

for all ­MAHLE employees, including the members of the ­MAHLE

pliance structure. As shown in the graphic below, this includes

Management Board, members of the M­ AHLE Managementthe ­MAHLE Business Code as a basic code of conduct for all

Committee, and executives. For affiliated companies locatedemployees worldwide as well as our compliance o­ rganization,

outside Germany, the M­ AHLE Business Code describes the minimum standards, which should then be supplemented by local
requirements and specific characteristics. In joint ventures andEnsuring
Sustainability

Training
ProgramComplianceDepartment

MAHLE
Compliance
Structure

Mesasures forPrevention

companies in which ­MAHLE does not have a majority holding,but rather a holding of at least 25 percent and not more than
50 percent, appropriate measures are taken to ensure compliance with the objectives of the M­ AHLE Business Code.

MAHLE
Business
Code

The ­MAHLE Business Code was updated in September 2023
following adjustments to the whistleblower system. New employees receive a copy with their orientation documents. Members ofthe ­MAHLE Management Board, members of the M­ AHLE Man-

45
agement Committee, and executives are required to submit ato the Corporate Legal department. When planning internal com-

written commitment to comply with the contents of the ­MAHLE

pliance audits, it consults with the Corporate Internal Audit depart-

Business Code and ensure that it is observed within their scope

ment, which then performs the compliance audits.

of responsibility.
The Corporate Compliance Office is supported by the Regional

Compliance organization

Compliance Offices, which are available to support employees in

The ­MAHLE Group Compliance Organization Guideline defines andtheir region with compliance queries and reports of violations. They

designates the responsibilities of the compliance organization andalso implement any necessary compliance measures at a local level.

describes its tasks and reporting lines in the event of compliance
The Regional Compliance Offices also preside over the Regional

violations.

Compliance Committees. They are primarily responsible for analyzAt group level, the compliance organization consists of the M­ AHLEing local compliance risks, reporting on local compliance issues andManagement Board, the Compliance Steering Committee, and theadapting the guidelines to suit local characteristics.

Corporate Compliance Office. Further Regional Compliance Committees and Regional Compliance Offices have also been estab-Management of compliance violations

lished at a regional level.

The Corporate Compliance Office must be involved in any incidents
that may have a significant impact on the whole group. It assess-

The Compliance Steering Committee consists of members of thees compliance incidents in accordance with the provisions of the­MAHLE Management Board and M­ AHLE Management Committee

MAHLE Group Compliance Organization Guideline. Any serious­

as well as executives from Human Resources, Legal and Internaland significant violations are immediately reported by the Corpo-

Audit. It is responsible for the content and strategic further develop-

rate Compliance Office to the Compliance Steering Committee.

ment of the compliance structure and reports directly to the M­ AHLEThe responsible members of the Compliance Steering Committee

Management Board.

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

The Corporate Compliance Office implements preventive measures
such as training sessions and communication activities relating to

Employees wishing to report a potential violation of compliance rules

antitrust law and corruption prevention. It also handles reports of

can approach the Corporate Compliance Office or the Regional Com-

compliance violations, evaluates them, and passes them on to thepliance Office responsible for them. Employees can also use the web-appropriate bodies. The Corporate Compliance Office is attachedbased whistleblowing system when observing such a compliance vi-

The ­MAHLE compliance reporting channels

Regional
Compliance
Office
MAHLE
Whistleblower
External
Ombudsperson

External
Informant

Integrity
Platform

Corporate
Compliance
OfficeCompliance
Steering
Committee

MAHLE
Management
Board

MAHLE
Supervisory
Board

46

Responsible Corporate Governanceolation, as well as when there is an increased need for confidentiality.

Prevention of fraud and corruption

The Integrity Platform is available to all employees and to external par-In order to further strengthen the integrity and security of ourties on the M­ AHLE website. Alternatively, employees have the option

business activities, the guide Prevention of Corruption was ex-of contacting the external ombudsman responsible for their region.

panded in the 2023 financial year to include existing fraud prevention processes. This results in a more effective implementa-

In 2023, 162 potential compliance violations were reported world-tion of our preventive measures by utilizing common approaches.

wide. The Corporate Compliance Office classifies the received reports in categories in accordance with the M­ AHLE Group Compli-

Prevention of fraud and corruption is therefore an important topic

ance Organization Guideline. Seven serious or significant reports

at ­MAHLE. The purpose of our Guide on Prevention of Fraud

were investigated by Corporate Internal Audit, 143 were forwarded

and Corruption and related compliance and corruption training

to the respective department, four were not taken account of due tomodules is to give employees guidance and support with respectlack of information and eight were in the pre-assessment.

to the most important rules relating to fraud and corruption prevention.

The ­MAHLE Management Board and the M­ AHLE Supervisory
Board are informed annually about current developments of the

Further provisions with respect to the approval of processes­MAHLE compliance structure and activities of the M­ AHLE compli-

and / or business transactions can be found in our Approval andance organization. The M­ AHLE Management Board also receives a

Signature Guideline. This also defines the dual-control principle

detailed compliance report. Corporate Internal Audit also communi-

and which processes / business transactions need to be ap-

cates the key results of the audits conducted.

proved by which management level. This makes it another toolthat helps us to avoid fraud and corruption.

The compliance management system is reviewed regularly and de-We refer our business partners to our strict anti-fraud and cor-veloped further if necessary.

ruption policy, which is part of the Supplier Code of Conduct, andwith which all our suppliers have to comply.

Prevention of fraud,corruption and antitrust law

Antitrust law
It is particularly important to follow the antitrust regulations,which safeguard and ensure free and fair competition worldwide.

The compliance risk areas of corruption as part of fraud and anti-

We work proactively to prevent potential violations as it is in ourtrust law are managed centrally by the group-wide M­ AHLE compli-

own interests to do so. Our Guide on Antitrust Law and related

ance organization as these risk areas are not assigned to particular

antitrust training materials provide detailed instructions on howorganizational units.

Number of employees trained in prevention of corruption and antitrust law in 2023
Total
(nominated)

Management Board, Management­Committee and ­executive levels
1 to 3 (training completed)

Other levels(training completed)

Coverage(training completed)

2,181

97

2,028

97%

North America

612

80

519

98%

South America

375

25

339

97%

Asia/Pacific

999

14

971

99%

4,167

216

3,857

98%

RegionEurope/South Africa

Total

47
to behave in areas sensitive to antitrust law, such as in conduct
toward competitors, customers and suppliers, in association

Data protection

meetings and in the context of joint-venture activities.
As we preserve the right to informational self-determination, we
Training on prevention of corruption and antitrust law

must take several legal requirements into account. Firstly, we

In order to prevent violations of laws and internal company rules

must be compliant with the European General Data Protection

from the outset, we organize regular web-based compliance

Regulation and the German Federal Data Protection Act as ourtraining sessions that cover the topics of antitrust law and pre-headquarters are in Germany. We are also gradually improving

vention of corruption. The training sessions are mandatory for all

our data protection system while considering global data pro-members of the ­MAHLE Management Board and ­MAHLE Man-

tection regulations and setting higher goals for our international

agement Committee as well as for executives and employees

plants beyond the local laws, therefore aligning them with thein risk-exposed areas such as purchasing and sales. Employ-

EU GDPR (General Data Protection Regulation) standards.

ees also have the option of voluntarily following the training programs. Refresher sessions for the target groups take place every

How data privacy at ­MAHLE works

two years. In 2023, a total of 4,073 employees completed theWe have built up an internal team of data privacy specialists

compliance training sessions.

­(Corporate Data Privacy department) who work together withan external data protection officer (Corporate Data Protection

Compliance@MAHLE

Officer). Both entities are highly experienced in the field of data

In order to raise awareness, we implemented a web-based

privacy and work together exchanging know-how on different‘compliance@­MAHLE’ training module. The training module iscurrent and upcoming topics.

compulsory for all employees worldwide with a ­MAHLE email
account, regardless of seniority. The content of the training in-

Our data protection organization contains 27 National Data

cludes general aspects of compliance as well as aspects spe-

Protection Coordinators and 94 Data Protection Coordinatorscific to MAHLE. It also provides training on compliance in aworldwide. Each one of them is specially trained in the field ofwide variety of matters, including occupational health, safety

data protection. They function as a first point of contact in theand environmental protection, anti-corruption, antitrust, data

respective countries and connect the employees with Corporate

protection and export control. The goal is to show how to avoid

Data Privacy.

compliance violations and therefore avert the risk of negative
consequences. In 2023, 4,250 employees participated.

Our group-wide Data Protection Management System wascreated in 2020 and has been constantly improved since then.
The global rollout of the Data Protection Management Systemwith local adaptations started on a risk-based approach in2022 and was continued 2023. This process will be finalized
in 2024. We also perform a mandatory, web-based data pro-

Numbers of employees trained in the module"Compliance@MAHLE" in 2023
Regiontection training session for the whole M­ AHLE Group. We also
conducted audits in 2023.

Total(nominated)

Coverage(training completed)

The Corporate Data Privacy department must be informed ofEurope/South
Africa

2,121

100%

any violations of the data protection guidelines. Each case is in-North America

850

100%

Officer reports a relevant data breach to the appropriate data pro-South America

463

100%

tection authorities and, if necessary, to the affected data subjects.

Asia/Pacific

816

100%

4,250

100%

Total

spected accordingly. If necessary, the Corporate Data Protection

48

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 ofinnovative products. For us, sustainability begins in the research anddevelopment phase. Our innovative solutions and versatile product portfolio
are 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 maintain our level of investment in research and development.

At a glancenStandardized wireless charging for electric vehicles;­MAHLE positioning system selected by SAE International(Society of Automobile Engineers) as the global standard
solution for wireless chargingn

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

MAHLE focuses on Electric, Thermal and efficientInternal Combustion Engine solutionsn

MAHLE established a Global Bio-Mobility Center in Brazil

The future of mobility is electric or hybrid for ­MAHLE. New vehicles will largely be powered by electric drives, regardless ofthe energy source. 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 bothcomplexity and costs. Automobile manufacturers are designinglarge cross-model vehicle platforms and need strong powertrain suppliers who can take on a larger portion of the value
chain. In emerging markets, the market for combustion engine
vehicles is expected to continue to grow, especially in India andSouth America. Hydrogen and alternative fuels are an important

Sustainable mobility

supplement when it comes to decarbonizing applications likecommercial vehicles or agricultural and construction machinery.
Based on the market implications and our vision “We Share Fu-

There is no question that the mobility sector has to make its con-ture Mobility” and our mission “Efficiency in Motion”, ­MAHLE istribution to climate protection, and it is our goal to become carbon

working on the climate-neutral mobility of tomorrow with the aim

neutral by 2040. However, the dynamics in our sector have proba-of further expanding its position as one of the leading system

bly never been as high and the overall global picture of powertrain

suppliers in three strategic areas: Electrification, Thermal Man-

development as complex as it is today. This applies to passenger

agement and Internal Combustion Engines. This will contribute tocars, but also to the commercial vehicle sector. MAHLE is expect-

the Sustainable Development Goals (SDGs) “Industry, ­Innovation

ing a significant increase in the variety of drives both in the pas-and Infrastructure” (SDG 9), “Responsible Consumption and Pro-

senger cars and in the commercial vehicles. In terms of newly pro-duction” (SDG 12) as well as “Climate ­Action” (SDG 13).

duced passenger cars, our ­MAHLE market scenarios expect themarket share of purely electrified vehicles to increase worldwide
from just over 10 percent in 2023 to around 55 percent in 2035,
despite the continued market growth of vehicles with combustion
engines in emerging countries.
The outlook leads to the following market implications for the
corporate strategy M­ AHLE 2030+.

49
In the area of Electrification, M­ AHLE focuses on innovations in

Sustainable innovation

the field of electric drive, components for fuel cells and batteries, as well as electric charging and associated solutions that

E-Motor Technology Kit

enable e-mobility with maximum efficiency through cutting-edge

MAHLE has developed a technology kit for electric motors thattechnology. In this respect, ­MAHLE is addressing those specificcontains the benefits of its benchmark technologies. With this

topics that are currently still posing challenges for our customers:

toolbox ­MAHLE can offer customized electrification solutions

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

for any vehicle class, application, or even brand philosophy: theareas of application are vehicles of all kinds, including e-bikes,“perfect e-motor.”e-scooters, passenger cars, delivery vans, heavy-duty commercial vehicles, and off-road and industrial applications.

It comprises the SCT (Superior Continuous Torque) electric motor and the MCT (MAHLE Contactless Transmitter) technology,

The second strategic core area is Thermal Management – i.e. thewhich enables contactless transmission of current to the rotor

vehicle’s heating and cooling. The aim here is to achieve ener-

coils in order to generate the required magnetic field without us-gy efficiency and cabin comfort for sustainable mobility. M­ AHLEing permanent magnets. While SCT technology reduces the re-uses its in-depth expertise in the areas of powertrain, electronics,

quired amount of material for an electric motor by more than 40

battery and in the passenger compartment to offer highly efficient

percent compared to state-of-the-art cooling technology, MCT isand cost-optimized system architectures for all drive types andan enabler for rare earth-free electric motors.

vehicle classes via a modular system approach.
In addition, M­ AHLE 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 efficientengines that can also run on e-fuels, hydrogen, or other sustainable
fuels. We advocate for competition for innovations and technologies
to make the transport of people and goods globally climate neutral.
The entire automotive industry is changing, and the pace oftechnological transformation has increased. This applies primarily to the advance of electromobility and many of our customers are adjusting their plans accordingly. So are we. We support
the transport sector’s contribution to climate protection with atechnology-­neutral view of customers and markets and have developed technologies for all forms of drivetrains.
MAHLE has established a Global Bio-Mobility Center in Jundiaí,Brazil to support development and global rollout of combustion
engines with renewable biofuels.
The MAHLE Tech Center in Jundiaí has dedicated resources for test­
ing sustainable fuels. Digitalization is also part of this Tech ­Center,using simulation to optimize the efficency of biofuel engines.

50

Sustainable Innovations

SCT E-Motor

Wireless Charging

The ­MAHLE SCT (Superior Continuous Torque) electric motor is

In order to shape future mobility and intelligent energy infra-

a key enabler for zero emissions mobility. The SCT technology

structures, M­ AHLE and Siemens have committed to fostering

reduces the required amount of material for an electric motor

bi-directional inductive charging of electric vehicles. The con-by more than 40 percent compared to electric motors as it has

tactless power transmission is based on coil systems utilizing

state-of-the-art cooling technology and same continuous perfor-

resonant coupling with impedance matching networks between

mance. This makes the SCT technology a sustainable solution

the vehicle and ground assembly units. Successful standardiza-

for the electrification of future vehicles because it reduces thetion efforts assure compatibility of vehicle and ground assem-

correlated CO2 emissions and other environmental impacts overblies from different manufacturers will be compatible. The full

the whole product life cycle while simultaneously reducing cost,

automation of the inductive charging system without physicalweight, and volume. An electric motor with SCT cooling tech-user interaction increases the average grid availability of vehi-

nology can also be designed without rare-earth materials whencles providing energy infrastructure services. MAHLE expects

applied in an Externally Excited Synchronous Machine (EESM).

large-scale deployment in public, semi-public and private areas,
so wireless charging will become a key technology to utilize thebattery capacity of the electric vehicle fleet as an integral part ofthe energy infrastructure and pave the way for the transition to
renewable energies.
MAHLE has developed a positioning system that allows anelectric vehicle to be simply, reliably and precisely aligned above
the charging coil in the floor. It has been selected by SAE International as the global standard solution for wireless charging.
SAE, the US-based, internationally renowned non-profit association for the progress of mobility technologies, therefore closes
the last gap in the standardization of inductive charging that has
been unfilled for ten years.

51
Thermal management

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

Thermal management – i.e. heating and cooling in the vehicle –Coupling the battery with the refrigerant circuit of the air condi-

is very important in the development of efficient and CO2-neu-

tioning system is necessary, especially during fast charging con-tral vehicles. It is complex and very demanding for inverters andditions. It is even more intense in fuel cell vehicles, where thermaltransmissions as the number of components in electric vehicles

management is also becoming a key technology.

that require cooling is quite high. Accordingly, we also have arelatively high amount of heat in some operating conditions that

We are facing complex and diverse challenges as a result of thethe cooling system has to absorb. And heat is energy – we havetransformation to green energies. In a world that is moving everto use it carefully in electric vehicles, otherwise we immediately

faster, new approaches, agile working methods and tools forlose cruising range. The real-world driving range decrease is a

artificial intelligence must be combined with the structures andsignificant challenge, especially in low or high outside tempera-

values of a traditional foundation company. The MAHLE bionicture conditions.

battery cooling plate demonstrates the company’s ability to combine innovative engineering with sustainability and affordability.

In addition to the demand for efficiency, electric vehicles are challenging because some components, such as the battery, require

The battery has ten percent more cooling capacity, 20 percent

a very narrow temperature window. Otherwise, the performanceless pressure loss, and improved temperature distribution, so it isand service life will suffer, or there will even be immediate material

more efficient, more durable, and charges more quickly. The coral-­damage. Incidentally, this also applies to the electric motor andinspired design reduces material usage by 15 percent, therefore

the power electronics.

cutting CO2 emissions by 15 percent. The innovation M­ AHLE
showcased at IAA Mobility 2023 signifies a shift in lithium-ion­battery cooling.

The latest thermal management modules combining coolant andrefrigerant circuits have also been showcased at IAA Mobility.
These thermal modules mean less vehicle integration is required
as various components are integrated in the pretested module.
The integration of the components significantly reduces the losses in the coolant and refrigerant lines and therefore increases
efficiency in the thermal management.

52

Sustainable Innovations

Hydrogen combustionhydrogen engines. DEUTZ plans to use these so-called power

In order to achieve the climate protection goals, ­MAHLE globallycell units (PCU), i.e. units consisting of piston, piston ring pack,

exploits the potential of all available powertrain technologies. We

and piston pin, in hydrogen engine generator sets for the first

are therefore committed to technological diversity as part of ourtime from the end of 2024. Further applications in the off-high-corporate strategy. In addition to e-mobility, including fuel cells

way sector, such as agricultural and construction machinery, areand the associated thermal management, ­e-fuels and hydrogenplanned. These new engines can be operated in a climate-neu-

have the potential to make many heavy-duty and off-highway

tral manner using hydrogen produced from renewable sources

applications CO2-neutral in the short term. ­MAHLE considers

since no CO2 is emitted when the hydrogen is burned. ­MAHLE

the climate-neutral green combustion engine, which runs on

has already been working on engine systems for hydrogen for six

non-fossil fuels such as hydrogen, to be one of the future tech-years and on other climate-neutral fuels for over 20 years.

nologies for a sustainable powertrain mix.
Hydrogen engines are ideal for high-load applications with inIn 2023, ­MAHLE received a series order from engine manufac-

termittent load steps and are robust in harsh environments withturer DEUTZ for the development and supply of components forheat, contamination and vibration.

Hydrogen engine on test bench

53
Climate-friendly micro mobility
MAHLE SmartBike Systems, headquartered in Palencia, Spain,
offers a wide range of innovative solutions for e-bikes, including

Quality and productresponsibility | CQ

hub and mid-drive systems. The commitment of ­MAHLE SmartBike Systems is to create a compact, highly efficient system andOur standardized, group-wide management system, which cov-

components. Our designs are driven by the aim to provide theers the requirements of IATF (The International Automotive Task

best value to riders, while striving to minimize environmental im-

Force) 16949, has ensured quality for many years. This system

pact through minimal use of resources.

is coordinated and controlled by the Corporate Quality department. Management system representatives at the manufacturing and development sites assume the implementation of our­MAHLE business processes in their entities. This ensures that all
development sites are successfully certified in accordance with
ISO 9001 and all production sites in accordance with the additional requirements of the automotive industry in accordancewith IATF 16949.
In addition, ambitious quality targets are an element of our annual
corporate planning. We define these targets top-down, substantiate them bottom-up and then consolidate them globally acrossthe operating units. Our group-wide reporting of relevant quality
data ensures that accurate information on the quality perfor-

Battery Service Solutions
The group is also working on products for electromobility in theservice and spare parts business. Battery diagnosis is essential
for maintaining and repairing an electric vehicle – and it also plays
an important role in determining the residual value. ­MAHLE Aftermarket has therefore developed diagnostic and service solutions that allow independent workshops to carry out vehicle andmanufacturer-independent battery diagnostics. The E-HEALTH
Charge battery diagnostic solution combines charging and diagnosis and provides reliable information about the “health status”
of the high-voltage battery.

mance of all units is available at all times.
Malfunctions can have serious consequences in the case ofsafety-related components for automobiles. We therefore assume
responsibility for the safety of our products throughout their planned
life cycle by defining their function description for customers.
We reduce risks in series production through quality assurance
measures and monitor conformity with our specifications throughaudits. Identified weaknesses and errors are systematically analyzed and consistently eliminated. If a product recall becomes
necessary despite all these precautions, M­ AHLE works in close
coordination with its customers and the relevant supervisory authorities. An ad hoc reporting chain is used to inform the business
unit’s management and the ­MAHLE Management Board.
As a result of our activities, we were able to stabilize the numberof customer complaints in the Automotive division on the samelevel as previous year. We were able to improve the PPM rateof non-conforming parts by 30 percent in 2023 compared tothe previous year. Our customers once again acknowledged thequality of our products and services as we received more than
50 awards in the 2023 business year.

54

Sustainable Finance

Sustainable Finance
The finance sector changes rapidly and acknowledges ESG (Environment,
Social, Governance) aspects more and more in its investment decisions. Financeis crucial for ambitious sustainability targets like the Paris Agreement, thetransition to a circular economy and the transformation of the transportation sector. At the same time, new requirements like the EU taxonomy delegatedacts impose additional reporting requirements. M­ AHLE aims to become a pro­active participant in the evolving market segment of sustainable finance.

At a glancenn

In addition to that, M­ AHLE continued to prepare for the EU tax-

MAHLE is working on the accessibility for participation in

onomy regulation which will oblige the company to report on thethe evolving sustainable finance market

share of turnover, capital and operational expenditure linked to

MAHLE adapts financial reporting processes to be futuresustainable economic activities from 2025 onwards. Apart fromproof for European Taxonomy regulations

intensive monitoring of the political process and participation inindustry working groups, M­ AHLE focuses to adapt internal re-

One of the most recent topics of the M­ AHLE sustainability

porting processes to fully meet the sustainable finance require-strategy is Sustainable Finance. ­MAHLE worked on the further

ment of internal and external stakeholders as well as the EU

development of standards and rules for sustainable finance.

taxonomy.

MAHLE plans to invest in projects that have a positive impact
on the environment and thus, help to achieve the goals of theParis Agreement as well as the UN SDGs. ­MAHLE aims to adapt
its financing strategy suitable to its mission by the issuance ofsustainable finance instruments. M­ AHLE wants to diversify its investor base and broaden it with existing investors. The ambitionof ­MAHLE is the usage of finance instruments which:nfinance and / or refinance projects that comply with the ­MAHLE
core businesses and Sustainability Strategy, andnare linked to the achievement of specific sustainability goals.

55

The M
­ AHLE FOUNDATIONOur company founders, Hermann and Dr. Ernst M­ AHLE, associated theircommercial success with social responsibility at an early stage. In 1964,
they established the M­ AHLE FOUNDATION.
This 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 ensuresthat 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 M­ AHLE FOUNDATION also supports
around 150 projects and initiatives
throughout the world every year. The
initiatives are described in detail in the­M AHLE FOUNDATION ’s Annual Report.

https://www.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

as well as the Standard on Quality Management 1 published by
the Institut der Wirtschaftsprüfer (Institute of Public Auditors inGermany; IDW): Requirements to quality management for audit

To MAHLE GmbH, Stuttgart

firms (IDW Qualitätsmanagementstandard 1: Anforderungen andas Qualitätsmanagement in der Wirtschaftsprüferpraxis - IDW

We have performed a limited assurance engagement on the

QMS 1 (09.2022)), which requires the audit firm to design, imple-

2023 Sustainability Report of MAHLE GmbH, Stuttgart (hereinaf-

ment and operate a system of quality management that complies

ter the “Company”) for the period from 1 January to 31 Decem-with the applicable legal requirements and professional standards.

ber 2023 (hereinafter the “Report”).

Practitioner´s Responsibility
Responsibilities of the Executive Directors
Our responsibility is to express a limited assurance conclusion
The executive directors of the Company are responsible for theon the Report based on the assurance engagement we have

preparation of the Report in accordance with the principles stat-

performed.

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

Within the scope of our engagement we did not perform an audit
on external sources of information or expert opinions, referred toThis responsibility of Company’s executive directors includes thein the Report.

selection and application of appropriate methods of sustainability
reporting as well as making assumptions and estimates relat-

We conducted our assurance engagement in accordance withed to individual sustainability disclosures, which are reasonable

the International Standard on Assurance Engagements (ISAE)

in the circumstances. Furthermore, the executive directors are

3000 (Revised): Assurance Engagements other than Audits or

responsible for such internal controls as they have considered

Reviews of Historical Financial Information, issued by the IAASB.

necessary to enable the preparation of a Report that is free from

This Standard requires that we plan and perform the assurance

material misstatement whether due to fraud or error.

engagement to allow us to conclude with limited assurance that
nothing has come to our attention that causes us to believe that

Audit Firm’s Independence and Quality Management

the disclosures in the Company’s Report for the period from 1
January to 31 December 2023 have not been prepared, in all

We have complied with the German professional provisions re-material aspects, in accordance with the GRI-Criteria.

garding independence as well as other ethical requirements.
In a limited assurance engagement the assurance procedures
Our audit firm applies the national legal requirements and profes-

are less in extent than for a reasonable assurance engagement

sional standards – in particular the Professional Code for German

and therefore a substantially lower level of assurance is obtained.

Public Auditors and German Chartered Auditors (“Berufssatzung

The assurance procedures selected depend on the practitioner’s

für Wirtschaftsprüfer und vereidigte Buchprüfer“: “BS WP/vBP”)

judgment.

57

Within the scope of our assurance engagement, we performed

us to believe that the disclosures in the Company’s Report for theamongst others the following assurance procedures and further

period from 1 January to 31 December 2023 have not been pre-activities:

pared, in all material aspects, in accordance with the GRI-Criteria.

nObtaining an understanding of the structure of the sustain-

Intended Use of the Assurance Reportability organization and of the stakeholder engagement
n

n

n

n

Assessment of the process for conducting the materiality anal-

We issue this report on the basis of the engagement agreed withysis in accordance with the GRI criteria

the Company. The assurance engagement has been performed

Inquiries of personnel involved in the preparation of the Reportfor purposes of the Company and the report is solely intend-

regarding the preparation process, the internal control system

ed to inform the Company as to the results of the assurance

relating to this process and selected disclosures in the Report

engagement. The report is not intended to provide third parties

Identification of the likely risks of material misstatement of thewith support in making (financial) decisions. Our responsibility lies

Report under consideration of the GRI-Criteria

solely toward the Company. We do not assume any responsibility

Inspection of processes for collecting, controlling, analyzing

towards third parties.

and aggregating selected data at specific sites of the Company
on a sample basis, incl.

Frankfurt am Main, 18 March 2024

– Physical site visit at Shanghai and Yingkou, China– Virtual site visits and document reviews at Mnichovo Hradiste,

PricewaterhouseCoopers GmbH

Czech Republic; St. Michael ob Bleiburg, Austria; Ramos

Wirtschaftsprüfungsgesellschaft

Arizpe, Mexico; Timisoara, Romania; Rottweil, Germany;
Krotoszyn, Poland; Tsuruoka, Japan and Morristown, USAnAnalytical evaluation of selected disclosures in the ReportnEvaluation of the presentation of the selected disclosures

Nicolette Behncke

regarding sustainability performancen

Reconciliation of selected disclosures with the corresponding

Wirtschaftsprüfer

data in the consolidated financial statements and the group[German public auditor]

management 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 Conclusion
Based on the assurance procedures performed and assurance
evidence obtained, nothing has come to our attention that causes

ppa. Thomas Groth58

SDG Index

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

Goals

2023 Status

Certify all production plants in accordance with
ISO 45001 by 2024
n Further reduce the LTIR accident rate,
goal for 2024: 2.8 accidents/million working hoursn

New targets for proportion of women were set:
By 2025, 25% in the Supervisory Board
By 2027, 29% in the Management Board
By 2030, 13% on first executive leveland 18% on second executive leveln Equal pay guarantee

n

n

n

n

Identify locations with water risksn

ISO 45001: 123 locations certified
LTIR accident rate 2023: 2.8

Target of 20% representation of women in Supervisory
Board met
n 8.4% on first executive level and 11.1% on second
executive level were reached in 2023
n Global diversity and inclusion commitmentnn

21 locations with water risks identified
Improved water reporting to the CDP Water, Rating B

Page
36-38

34-35

25

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

Energy consumption as measured against sales:
248 MwH, YoY: –3%
n 29 locations with certified energy management system, eleven inaccordance with ISO 50001 and 18 in accordance with EMASn PV installation in Izmir, Turkiye became operational
n 100% use of renewable electricity in Germany and Austrian Reduction of Scope 1 & 2 emissions by 43% compared to 2019

16-21

n

n

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

26-35,
42nnnContribute to sustainable mobilitynnAssess environmental impacts of products
Increase the share of recycled content

nn

Become CO2 neutral by 2040 (Scope 1 & 2)
Reduce Scope 1 & 2 emisisons by 49% by 2030
n Reduce Scope 3 emissions Cat. 01 & Cat. 11 by
28% by 2030

Affirmed strategic focus on Electrification, Thermal Management
and highly efficient Internal Combustion Engines

48-53

New LCA methodology externally approved
5.3% recycling content of resinsn Waste as measured against sales: 14 tons / €1 millionn 145 locations certified in accordance with ISO 14001

22-24

Report carbon emissions to the CDP, Rating B
Scope 1 and 2 emissions as measured against sales:
62 kt / EUR million sales (–18% YoY)n German locations set CO2e neutraln Near-term climate targets 2030 validated by Science Based
Targets initiative

16-18,
48-53

n

n

n

n

n

SDG s chosen based on analyses of customer requirements and the M­ AHLE Materiality Matrix.

59

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

mechanisms, are regularly internally reviewed to ensure theirof an integrated management approach for the purpose of iden-

effectiveness. Modifications and optimizations are made in line

tifying and avoiding risks. The components of the approach, in-with current requirements. If there is an additional approach forcluding policies, goals, responsibilities, resources and feedbacka specific topic, this is explicitly stated in the applicable chapter.

GRI Standard

DisclosurePage

GRI 2: General information 2021

2-1: Organizational details

06-11

2-2: Entities included in the

06-11,­organization’s sustainability reporting

AR 23

2-3: Reporting period, frequency and67

contact point

Omissions / explanations

See ­MAHLE Annual Report 2023

The ­MAHLE Sustainability Report is publishedannually.

2-4: Restatements of informationn/a

No restatements were necessary.

2-5: External assurance

56-57

The Sustainability Report 2023 has been externally assured by PricewaterhouseCoopers­GmbH Wirtschaftsprüfungsgesellschaft. A limited
assurance engagement in accordance with theInternational Standard on Assurance Engagements (ISAE) 3000 (Revised) was performed.

2-6: Activities, value chain, and other06-11,

business relationships

39-41

2-7: Employees

10-11,
26, 27,31

2-8: Workers who are not employees

30-32

2-9: Governance structure and

06-09,

a. The ­MAHLE Group­composition

43-47

b. Sustainability Managementc. See Annual Report 2023

2-10: Nomination and selection of the

AR 23

See Annual Report 2023

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

12

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

12c. At least annual review

60

GRI content index

GRI Standard

DisclosurePage

2-13: Delegation of responsibility for

12

Omissions / explanations

managing impacts
2-14: Role of the highest governance12

body in sustainability reporting
2-15: Conflicts of interest

AR 23

2-16: Communication of critical con-

12,

cerns

43-47

2-17: Collective knowledge of the12

See Annual Report 2023

highest governance body
2-18: Evaluation of the performance

AR 23

See Annual Report 2023

2-19: Remuneration policies

n/a

Not disclosed for confidentiality reasons.

2-20: Process to determine remu-n/a

Not disclosed for confidentiality reasons.

2-21: Annual total compensation ration/a

Not disclosed for confidentiality reasons.

2-22: Statement on sustainable

04-05

of the highest governance bodyneration­development strategy
2-23: Policy commitments

04-05,
14, 15,39, 46

2-24: Embedding policy commit-

04-05,

ments

14, 15,39, 46

2-25: Processes to remediate nega-

12-14,

tive impacts

44-49

2-26: Mechanisms for seeking advice

12-14,

and raising concerns

44-49

2-27: Compliance with laws and43-47­regulations
2-28: Membership associations

reasons.
04-05,
14, 392-29: Approach to stakeholder

12-15­engagement
2-30: Collective bargaining agree-

31-32

ments
3-1: Process to determine material

13

topics3-2: List of material topics

No more details disclosed for confidentiality

13

61

Topic-specific standards
GRI Standard

Disclosure

Page

Omissions / explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
39-42

GRI 204: Procurement Practices 2016

204-1 Proportion of spending on
local suppliersn/a

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
13-47

GRI 205: Anticorruption 2016

205-1 Operations assessed for risks
related to corruption

n/aa. Confidentiality constraints: numbers ofoperations assessed for corruption are notpublished for reasons of confidentiality.

205-2 Communication and training
about anticorruption policies andprocedures

43-47

Only absolute figures are given.
a., b., d. and e. Further explanation: training
modules are mandatory for members of theManagement Board, members of the M­ AHLEManagement Committee and for executives andemployees in risk-exposed areas.
c. We inform all our suppliers about the binding
MAHLE Supplier Code of Conduct. The Supplier
Code of Conduct and the M­ AHLE Business
Code are also published online and are available
for all business partners and the public.

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
44-46

GRI 206: Anticompetitive Behavior

206-1 Legal actions for anticom­
petitive behavior, antitrust, andmonopoly practicesn/a

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
22-23

GRI 301: Materials 2016

301-2 Recycled input materials used23

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
20-21

GRI 302: Energy 2016

302-1 Energy consumption within
the organization

20

a. From table: ‘other’ sources includes­propane, LPG, diesel, gasoline, 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 2022

302-3 Energy intensity

20

b. The denominator is sales
d. Within the organization

302-4 Reduction of energy
consumption

20c. Base year is 2019
d. Calculation methods as per GHG Protocol

Procurement Practicesa., b., c. Not applicable: In the automotive­industry, we comply with global standards, whichmeans we must use global supply markets
to ensure constant product quality and supply.

Anticorruption

Anticompetitive Behavior

a., b. Confidentiality constraints: numbers ofsuch legal actions are not published for reasonsof confidentiality. AR 2023

Materials

Energy62

GRI content index

GRI Standard

Disclosure

Page

Omissions / explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

13, 25

GRI 303: Water and Effluents 2018

303-2 Management of water
discharge-related impacts

n/aa. 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

25

a. iii. Not applicable. We do not source seawater.
c. Information unavailable: we do not yet
aggregate data by freshwater/other water.
d. Geothermal water is not included.

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
17-19

GRI 305: Emissions 2016305-1 Direct (Scope 1) GHG
emissions18b. All types of greenhouse gases included
c. Not applicable to our industrye. Emission factors are site-specific and CO2eequivalents are based on the DEFRA 2021 andIEA 2022. GWP rates correspond to IPCC Fifth
Assessment Report.
f. Operational control

305-2 Energy indirect (Scope 2)
GHG emissions

18

e. Emission factors are site-specific and CO2eequivalents are based on the DEFRA 2021 andIEA 2022. GWP rates correspond to IPCC Fifth
Assessment Report.

305-3 Other indirect (Scope 3)
GHG emissions

19

305-4 GHG emissions intensity

18

b. The denominator is salesc. Scope 1 and Scope 2 included
d. All types of greenhouse gases included,
given as CO2 equivalents

305-6 Emissions of ozone-depleting
substances (ODS)n/a305-7 Nitrogen oxides (NOX), sulfur
oxides (SOX) and other significant air
emissionsn/aInformation unavailable: we do not yet­aggregate information on air pollutants, suchas NOX (nitrogen oxides), SOX (sulfur oxides),or ODS (ozone-depleting substances), acrossthe group.

Water and Effluents

Emissions

63
GRI Standard

Disclosure

Page

Omissions / explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
23-24

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

n/aa. i., ii. Information unavailable: we are in theprocess of improving our waste management
approach.

306-2 Management of significant
waste-related impacts

24306-3 Waste generated

24

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

GRI 308: Supplier Environmental
Assessment

308-1 New suppliers that werescreened using environmental criteria

13,
39-40

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
39-40

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
26-35

GRI 401: Employment 2016

401-1 New employee hires andemployee turnover

29-30

401-2 Benefits provided to full-time
employees that are not provided totemporary or part-time employees

35

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 thisis 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 the process of creating a group-wide database. Information is currently available for Germany only.

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
26-35

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

n/a

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

13,
36-38

GRI 403: Occupational Health and
Safety403-1 Occupational health andsafety management system36403-2 Hazard identification, risk
assessment and incident
investigation

36-38

b. Further explanation: the processes for workers to report hazards is location-specific andaccording 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

36-38

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 safety37403-6 Promotion of worker health37403-7 Prevention and mitigationof occupational health and safety
impacts directly linked by business
relationships

36-38

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

37-38

a. i., ii. Confidentiality constraints: numbers andrates 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

13, 32

GRI 404: Training and Education

404-1 Average hours of training peryear per employee

32

Information not available

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

32

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

32

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

13,
33-35

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

33-35

GRI 3: Material Topics 2021

3-3 Management of material topics

13, 26,
33-35

GRI 406: Non-discrimination 2016406-1 Incidents of discrimination andcorrective actions takenn/a

GRI 3: Material Topics 2021

3-3 Management of material topics

13, 31

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

31

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 ofthe ­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

Omissions / explanations

GRI 3: Material Topics 2021

3-3 Management of material topics

13, 40,42

GRI 408: Child labor408-1 Operations and suppliers at
significant risk for incidents of child
labor

40

GRI 3: Material Topics 2021

3-3 Management of material topics

13, 40,42

GRI 409: Forced or compulsory labor409-1 Operations and suppliers at
significant risk for incidents of forced
or compulsory labor40

GRI 3: Material Topics 2021

3-3 Management of material topics

13,
39-40

GRI 414: Supplier Social Assessment
2016414-1 New suppliers that werescreened using social criteria

39-40

Our processes require a social assessment of
all new suppliers. More detailed information­unavailable as a comprehensive database isunder development.

414-2 Negative social impacts in the
supply chain and actions taken

n/aInformation unavailable.

3-3 Management of material topics

13

416-1 Assessment of the healthand safety impacts of product andservice categories

n/a

Information not available

416-2 Incidents of non-complianceconcerning the health and safety­impacts of products and services

n/aInformation not available

3-3 Management of material topics

13,
48-53

Child Labor

Risk assessment data shows no significant risk.

Forced or Compulsory Labor

Risk assessment data shows no significant risk.

Supplier Social Assessment

Customer Health and Safety
GRI 3: Material Topics 2021

Mobility
GRI 3: Material Topics 2021

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, Manuel Uebler,­MAHLE Archiv© 2024 ­MAHLE GmbH

MAHLE Sustainability

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

00007879EN4/24

Pragstraße 26-46