Stadtwerke München
Sustainability Report 2023

The pulse of Munich

Our commitment to the climate

From 2025 onwards, we will
generate sufficient green electricity
in our own plants to cover all of
Munich’s consumption.

Our climate targets

By 2040, we will supply CO2-neutral district heating to Munich.
We will cover the remaining heating demand from other heating
solutions such as local heating networks and heat pumps.

We will shape a cost-effective
transformation to hydrogen along
the value chain.

As a relevant and sustainable buyer, we will also
embed our climate-neutrality goals in our supply chain
and at our contractual partners.

We will electrify
our fleets by 2035.

We will avoid and reduce greenhousegas emissions to achieve climate
neutrality by 2040.

By 2040, we willachieve CO2-neutral
operation of all public
pools in Munich.

Read more on our engagementon the pages that follow and on
our website.

Contents
02–03

Foreword

04 – 07

Stadtwerke München –a portrait

08 –15

Sustainability management

16 –31

Essential services andproduct responsibility

32–47

Operational
environmental protection

48 – 61

Employees

62–71

Corporate governance

72–74

About this report

75 – 80

GRI content index

2

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N

Foreword

Dear readers,
For 125 years, we have reliably supplied Munich with energy and fresh-fromthe-source drinking water and have offered mobility that is compatible with theneeds of the city. To also ensure reliable essential services for the people in the
future, we need to develop solutions for the challenges of the present. This is
why we set ourselves the task of driving the energy transition forward ininnovative and consistent ways – without compromising the secure supply to
Munich’s citizens. In 2023, we again made considerable progress.
Thanks to our continuous expansion of renewable energies, we are arithmetically already able to cover significantly more than 90 % of Munich’s power
consumption with green electricity from our own plants. For a successful energy
transition in the heating segment, we intend to achieve CO2-neutral coverage of
all of Munich’s district heating requirements by 2040, mainly with the help ofgeothermal energy. In 2023, we paved the way for the construction of ourseventh geothermal plant, which will be the largest inner-city plant in Continental Europe. And we will install hundreds of kilometres of new district
heating pipes in the coming years with a view to consolidating and expanding
our offers. By 2045, approximately 60 % of Munich’s heating demand is to becovered by our district heating services. This makes them a key pillar in themunicipal heating plan of the City of Munich. In areas where we cannot offer
district heating, we are installing various decentralised solutions.
In addition, we are pressing ahead with the conversion of our bus fleet tobattery-electric drive systems to achieve 100 % electromobility in local public
transport. Even in the currently challenging financial situation, we plan tocontinue to strengthen the local public transport system to enable as many
people as possible to be mobile in a climate-friendly way.
To enhance the focus of our regional activities for the expansion of renewableenergies, we set up the “Regional Energy Transition” division in 2023. SWM’s
Sustainability Management has also been incorporated into this division. This
unit has drawn up a sustainability strategy that summarises and pinpoints oursocial and environmental goals. This strategy is being refined through thedefinition of key performance indicators and measures; among other things, we
are working on a decarbonisation path. The basis of this is our greenhouse gas
inventory, which we improved further in 2023. We have expanded the system

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N

Foreword

From left to right:
Helge-Uve Braun, Dr Karin Thelen, Dr Florian Bieberbach, Dr Gabriele Jahn, Ingo Wortmann

perimeter and now capture more emission categories than before. At the sametime, we succeeded in significantly improving the quality of the data. This allows
us to perform more precise analyses and take more effective measures to reduce
our impact on the environment. From the 2025 financial year onwards, we willreport annually on the progress made and successes achieved in accordance withthe requirements of the Corporate Sustainability Reporting Directive (CSRD)
that has been adopted by the European Parliament.
With all these activities, SWM’s employees contribute to Munich‘s quality of lifeand future viability. Their commitment plays a decisive role for our common
success on the journey towards a sustainable future. We invite you to read allabout our progress, challenges, and goals in the area of sustainability.
Sincerely yours

Dr Florian Bieberbach

Ingo Wortmann

Helge-Uve Braun

Dr Karin Thelen

Dr Gabriele Jahn

Chief Executive Officer

Director,
Mobility

Director,
Technology

Director,
Regional Energy
Transition

Director, Human
Resources, Real Estate,
and Public Pools

3

Stadtwerke München –a portrait
As one of Germany’s largest municipal companies (2023
revenues: approximately EUR 9.7 billion), we are a major
contributor to the quality of life of the people in Munich
and the metropolitan region. From reliable energy andwater supply to state-of-the-art urban mobility and fastInternet to Munich’s public swimming pools, we offer
award-winning services at fair prices.
We are committed to satisfying our customers withhigh-quality services and active relationship management. We embrace economic success while protecting
natural resources and the environment. We makeambitious investments in supply and infrastructure

Energyfacilities while ensuring sustainability. We are fairminded and act to achieve mutual benefits in our
relationships with customers, suppliers, and otherbusiness partners. We keep an eye on our independence and exercise due diligence in all of our ventures.

Our business segments
We manage our business across all segments of thevalue chain: Energy (Generation, Networks, Sales, andTrade), Water, Mobility, Telecommunications, andPublic Pools.

Water

Telecommunications

Mobility

Public Pools

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N

Stadtwerke München – a portrait

EnergyGeneration
We generate energy in Munich and the metropolitan
region in more than 80 plants, including wind, hydroelectric, and solar energy plants, energy-efficient
combined heat and power (CHP) plants, and geothermal
plants. Since 2004, we have also provided districtcooling. Here, we use the natural cold temperature ofground water and Munich’s underground streams.
In addition, we operate wind parks and solar energy
plants throughout Germany and Europe at sites with lotsof wind and sunshine. Via our shareholding in Spirit
Energy Limited (Spirit Energy), we also engage in gas
extraction in Northwestern Europe. In line with ourdecarbonisation strategy, we have already noticeably
reduced our gas production ( see the chapter “Essential
services and product responsibility”, page 19). On our journey
towards a climate-neutral Munich, we intend to gradually replace natural gas with decarbonised gases suchas hydrogen. Spirit Energy will also be aligned with therequirements of the energy transition: natural gas
production is to gradually dwindle away, and the existing
infrastructure is to be used sustainably, e.g. for CO2
storage or for the production of hydrogen.
Networks
Our essential public services for the Munich metropolitan
region include the operation of distribution networks forelectricity, gas, district heating and cooling, and water.
We operate energy and water grids with a total length of
more than 25,000 kilometres. In this task, our goal is toensure above-average supply quality and reliability
despite increasing cost pressure.
Sales
We are the clear market leader in the Munich energy
market, which is characterised by keen competition. To
maintain our position, we bank on customer relationships that are based on a spirit of partnership, with apositive image and a high level of customer orientation,
as well as sustainability and reliability. In these efforts,
our tried-and-proven high service quality is a prerequisite for our customers’ loyalty.
Trade
Trade is a key driver of our management and businessmodel for the energy sector. It helps us optimise ourenergy business and hedge against risks. In Trade, we areengaged in market-driven energy procurement andmarketing as well as managing our aggregated market

price risks, especially for electricity, natural gas, coal, andenergy-specific certificates. Trade also plans the
deployment of our generation plants and the
expansion and operation of our virtual power station.
Furthermore, Trade gives Energy Generation, Sales, andindividual SWM majority shareholdings access to theenergy markets.

Water
Our additive-free M-Wasser drinking water is extracted
naturally and delivered from the foothills of the Bavarian
Alps to Bavaria’s capital. M-Wasser ranks among the best
drinking waters in Europe and boasts excellent analyticalresults – significantly better than the statutory limits.
Approximately 1.6 million people rely on M-Wasser tosatisfy their water demand.

Mobility
Together with our subsidiary Münchner Verkehrsgesellschaft (MVG), we provide state-of-the-art andenvironmentally benign mobility in Munich. We interlink
traditional local public transport services (undergroundtrains, buses, and trams) with personalised solutions suchas the MVG Rad rental bike and our partners’ e-scooterand carsharing services. These offerings are an integral
part of our MVGO app, just like digital ticket purchasing.
In addition, we are driving the use of electromobility
forward and continue to expand our fleet of vehicles.

Telecommunications
Together with our telecommunications subsidiary M-net
Telekommunikations GmbH (M-net), we expand thefibre-optic network in Munich. M-net offers Internet,
voice, and transmission services for residential andbusiness customers in large sections of Bavaria, thegreater Ulm area, and the Main-Kinzig district in Hesse.
Our product portfolio is continuously developed further,ensuring our competitiveness. The services are performed
jointly by M-net, SWM Services GmbH (SWM Services),and Stadtwerke München GmbH (SWM).

Public Pools
With 18 indoor and outdoor pools and ten sauna facilities,
we offer some of the most modern pool landscapes inGermany, and we also operate two fitness centres andone ice-skating stadium. Approximately 3.5 million guests
visit our M-Bäder public pools every year.
An overview of SWM’s affiliated companies and major equity
participations can be found in our 2023 Annual Report frompage 74 onwards.

5

6

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N

Stadtwerke München – a portrait

For the 2024 – 2028 period, we are currently
planning to make investments of more thanEUR 6billion – mostly in the Munich metropolitan region.

This amount will be allocated as follows:} approximately EUR 2,100 million to local public

Committed to citizens’ well-being
As a company wholly owned by the City of Munich, we
are ultimately owned by Munich’s citizens. We feel
committed to their long-term and sustainable wellbeing,
and we strive to achieve economic success. Our goal is to
distribute a profit of EUR 100 million to our shareholder,
the City of Munich, every year.
Stadtwerke München is not merely seeking profit
maximisation, but is also committed to creating an
optimum outcome for the people in the Munich
metropolitan region. We want to preserve and improvetheir quality of life, maintain the city’s attractivenessas a business location, and provide support to themetropolitan region. In these efforts, we assume
responsibility for both the environment and society, andcooperative and partnership-oriented action is a key
element of our approach. In addition, we see ourselves
as a socially responsible company. This is also reflected inmany areas that go beyond the responsible operation of
our core business: we are one of the largest workplace
training organisations in the region, sponsor education,
sports, cultural events, and social projects, build
company flats, develop digital service offerings, andchampion a lively and diverse urban community.
We create added value not only for our customers andour shareholder, but also for society: we offer attractive
jobs to approximately 11,000 employees in the SWM
Group, most of whom live in the Munich region. In
addition, the local economy also benefits from us, as weplace orders worth many millions of euros with companies located in the Munich metropolitan region andthe city of Munich every year.

transport} approximately EUR 800 million to the expansion andmodernisation of the network and grid infrastructure} approximately EUR 1,450 million to the renewableenergies expansion campaign} approximately EUR 200 million to the expansion andmaintenance of conventional generation plants} approximately EUR 550 million to geothermalenergy for our district heating vision} approximately EUR 350 million to the company-flat
expansion campaign} approximately EUR 100 million to the expansion offibre optics for a future-proof Internet} approximately EUR 50 million to maintenance andmodernisation of public pools

EUR 320
million is the average annual order volume we placewith companies in the Munich metropolitan region.

EUR 160
million per year goes to companies locatedin the city of Munich itself.

We operate muenchen.de, the official online portal
for the city of Munich. With its broad coverage and many
contacts, muenchen.de is one of the most frequently
visited service websites in Munich. The muenchen.decentral address is the gateway to information andservices revolving around Munich’s urban life.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N

Stadtwerke München – a portrait

Our commitment to the community
Our mission to provide essential public services also
includes our commitment to a liveable and future-proof
urban community.
Since 2007, our SWM Education Foundation has supported
numerous projects aimed at improving the educational
opportunities of disadvantaged children and adolescents.
With basic foundation assets totalling EUR 20 million, thefoundation ranks among the largest organisations of its
kind in Germany’s educational sector. Every year, it invests
approximately EUR 500,000 in the sponsoring of a wide
variety of projects. Since 2013, it has moreover awarded asponsorship prize for outstanding commitment toeducation. In 2023, the foundation paid out a total of
approximately EUR 450,000 to eleven projects. Recipients
included the Munich Chess Foundation for its “FeelWelcome With Chess – Chess Integrates” project, theCondrobs e. V. addiction counselling service for its “Prepfor Technical Training” project, and the Johanniter-UnfallHilfe e.V. humanitarian association for its “Study Groups
at Dominik-Brunner-Haus” free tutoring project. In theyear under review, a total of approximately 600 children
and adolescents benefited from funding provided by the
SWM Education Foundation.
With our “Stadtwerkeprojekt” initiative, we also help
young adults who are socially disadvantaged or sufferfrom impairments. The project aims to help them gettheir careers off the ground through suitable
qualifications.
We support schools with curriculum-related materials
revolving around the topics of energy, water, andcommunication. In addition, we offer them free career
guidance, guided tours, and events.
Low-income households receive free energy counsellingfrom us. Our customer service employees analyse theconsumption behaviour of residential customers andgive them advice regarding tariffs and all personal
concerns. In addition, we offer a monthly energy

consultation hour to Munich’s senior citizens on thepremises of the Munich Senior Citizens Advisory Council.
“Krisendienst Psychiatrie Oberbayern” offers individual
counselling for people in mental distress. We have actively
supported this psychiatric crisis hotline for Upper Bavaria
since it was established in 2017, e. g. with poster
campaigns displayed in the local public transport system.
We support Munich’s cultural landscape throughinitiatives such as an advertising cooperation with the“Tollwood” festival and support for Tierpark Hellabrunn,
the first geo-zoo.
In addition, we support recreational and professional
sports in Munich. Among other things, we are thenamesake of the track-and-field club “Leichtathletikgemeinschaft Stadtwerke München” and the swimmingclub “Schwimmstartgemeinschaft Stadtwerke München”.
Furthermore, we are partners in various sports offerings
such as “Münchner Freizeitsport” for recreational sports
and the Munich Marathon.

RECORD DONATION FOR “HELFENDE HÄNDE”
Since 2003, we have served fresh-from-the-source
drinking water at the Tollwood Summer Festival.
Proceeds are donated. In 2023, our donation reacheda record level of EUR 23,585. We handed this amountover to the “Helfende Hände” humanitarian association,
which provides live-long support to people withsevere multiple disabilities through fostering, care, andintegration. The association supports approximately
150 children, adolescents, and adults in various facilities
in Munich, including special-needs schools, therapeutic
day-care centres, sheltered workshops, and residential
facilities for adults. In July, “Helfende Hände” openeda new special education centre geared to the needs of
74 pupils with multiple disabilities. Our donation will
help fund this centre.

7

Sustainability management

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N

Sustainability management

As a company owned by the City of Munich, our activities
are guided by the interests of the city and its
inhabitants. Our organisation reflects the diversity ofthis city – and our sustainability management reflects
the standards of our stakeholders, products, andservices. Our energy services thus cover essential needs,
supplemented by attractive offers, and are based onsustainable and low-emission operations. In drinking
water supply, product quality and nature conservation
have always gone hand in hand in the regions where wesource the water. In our mobility services, we strive forzero emissions and are committed to enhancing
accessibility for all passenger groups and harmonious
integration into the urban society and landscape. And
our public pools are intended to be gathering places
with near-natural greenspaces.
The overall responsibility for the topic of sustainabilitylies with the top executives of our Group, the Management Board of Stadtwerke München GmbH. The
Management Board is responsible for adopting relevant
decisions on sustainability; concrete examples include
the sustainability strategy or SWM‘s transformation planfor sustainable heating.
The Supervisory Board is involved in sustainability
concerns in a topic-adequate manner and verifies thealigned sustainability issues. Established reporting andinformation formats are used to adequately prepare theSupervisory Board, impart the necessary professional
skills, and provide the requisite background information.
This enables the Supervisory Board to fulfil its responsibility and monitor sustainability topics in a suitablemanner.
In our central organisation, Sustainability Management
has been assigned to the Regional Energy Transition
division as a staff unit, which acts as an overarching
functional link for all sustainability topics in the group.
The responsibilities of the central Sustainability
Management focus on designing and ensuring theimplementation of the sustainability strategy andgroup-wide sustainability topics. In addition, we have set

up decentralised sustainability management in our
subsidiaries. The Management Board delegates this task
to specialists where this makes sense, e.g. in energy orenvironmental management or corporate healthmanagement. Group executives develop our strategicorientation in terms of energy consumption, emissions,and other environmental issues; the business segments
then implement the associated measures, see thechapter “Operational environmental protection”, page 33. Ourguideposts in these efforts are external and internal
quality standards that also cover the areas ofoccupational health and safety. New and extensive
topics, such as the preparation for new statutory
requirements, are developed in projects. This ensures anefficient flow of information. In addition, the parties
responsible for the topic of sustainability in theorganisation exchange their knowledge formally andinformally. Executives are regularly informed in “jourfixe” meetings. The Management Board is involved in asituation-related and topic-adequate manner.
In January 2023, the EU’s Corporate Sustainability
Reporting Directive (CSRD) entered into force. It aims atenhancing non-financial reporting and elevating it to thesame level as financial reporting. Under the CSRD, many
companies – including SWM – will have to fulfil extensive
reporting obligations regarding their sustainability
activities in the coming years. Based on the current
information, 2025 will be the first financial year on which
we will have to report in compliance with CSRD rules in
2026. We are already preparing for this in an internalcross-divisional project. Among other things, we areadjusting our ESG due-diligence processes and are
updating our materiality analysis according to the finallyadopted and mandatory European Sustainability
Reporting Standards (ESRS). The results of the materiality
analysis are the basis for further CSRD preparation. Afterall, they define the data points that will be included in
the future report. The CSRD will also impose far-reachingreporting obligations in both the social area andenvironmental protection, especially on the topic ofclimate change. We have already begun to address theseobligations.

910 SUS TA I N A B I L I T Y R E P OR T 2023
Sustainability management

S TA DT W E R K E M Ü N C H E N

SWM sustainability strategy
In 2023, the central Sustainability Management of
Stadtwerke München developed a comprehensive
sustainability strategy. This strategy combines our
initiatives in the key areas of “Climate and Environment”,“Future-proof Corporate Culture”, and “Sustainable
Supply Chain and Products” and follows the accepted
ESG logic (E = environmental, S = social, G = good
governance). The sustainability strategy was designed
in alignment with the group strategy, because
sustainability is the central goal of our actions. The
strategy not only sharpens our focus, but also ensurescompliance with the relevant statutory requirements.
Within the framework of this strategy, six key andbinding goals were defined that contribute to our group
goals “environmentally friendly”, “dynamic”,“entrepreneurial”, and “reliable”:
1. Reduction and avoidance of greenhouse gas
emissions with a view to achieving climate neutrality
by 20401), see the chapter “Operational environmental
protection”, page 35.
2. Proactive preparation for the impacts of climatechange and responsible use of water resources.
3. Diversity and an inclusive corporate culture.

1)

We will remain a reliable partner of our customers beyond the year 2040 and willcontinue to offer them gas products to the extent to which this is legally permissible.
As long as no final legal definition of the term “climate neutrality” exists, we will
rely on the net zero approach of the Science Based Targets Initiative. In line with thisapproach, we plan to cut at least 90 % of the greenhouse gases measured in CO2e
through avoidance or reduction and neutralise only a maximum of approximately
10% of residual emissions with certificates.

4. Employee orientation to strengthen SWM’s economic
efficiency and innovative strength.
5. Assumption of social and environmental
responsibility in the supply chain; work withsustainability-promoting and innovative products,
services, and technologies.
6. Responsible use of resources throughout the entire
product lifecycle; ensuring a functioning circular
economy.
The sustainability strategy is now being refined throughdefinition of key performance indicators (KPIs) andspecific measures in a joint project aimed at preparing
for and embedding the CSRD. These measures are being
developed and implemented in cooperation with thebusiness segments and are being supported by accompanying change management processes with a view to
optimising their organisational integration andimplementation.

Materiality analysis
SWM’s sustainability reporting is based on a materiality
analysis, which we carried out as follows during the
preparation of our first report in 2019. First, wedeveloped the list of topics based on an analysis ofpertinent expert information. The sources we used
included national and international frameworks such as
the “National Action Plan for Business and Human
Rights” (NAP) and the United Nations’ “Sustainable
Development Goals” (SDGs) as well as the recognised
Global Reporting Initiative Standards (GRI Standards),
the German Sustainability Code (DNK), and ISO 26000.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 11

Sustainability management

This resulted in slightly under 200 topics that we pooled
into 28 clusters. Next, our specialist departments
assessed these clusters on the basis of two dimensions:
impact on the environment and society, and significancefor stakeholder decisions. Lastly, the SWM Management
Board assessed the topics in terms of their businessrelevance.

SOCIETY
A.1

Social responsibility

PRODUCTS AND SERVICES
B.1

Provision of essential services

B.2

Product responsibility

ENVIRONMENT

Based on this materiality analysis, we derived 16 material
topics, which we have grouped into five action areas:} Society} Products and services} Environment

C.1

EnergyC.2

EmissionsC.3

Raw materials and supplies

C.4

Water

EMPLOYEES} Employees} Corporate governanceEvery year, we check the material topics to determine
whether there is any need for adjustment, and we also
did so in 2023. No adjustments were necessary in the year
under review. The identified material topics thus remain
the focus of our Sustainability Report. In preparation for
the CSRD, we are updating the materiality analysis inaccordance with the requirements of the ESRS.

D.1

Working conditions

D.2

Training and education

D.3

Occupational health and safety

D.4

Diversity and equal opportunities

CORPORATE GOVERNANCE
E.1

Value creation

E.2

Compliance

E.3

Data protection

E.4

Competition

E.5

Political engagement

very relevant

Materiality matrix

E.1
E.5

C.2

A.1

C.1

E.4

E.2

B.1

B.2
E.3

Stakeholder relevance

C.4
D.1

C.3
D.4
D.3

relevant

D.2

medium

Impact on the environment and societyhigh12 SUS TA I N A B I L I T Y R E P OR T 2023
Sustainability management

S TA DT W E R K E M Ü N C H E N

Stakeholder management
Numerous stakeholder groups shape our actions, andour operations impact many people. These interactions
are relevant for us; after all, it is our goal to do the best
possible justice to all our stakeholders. To this end, ourefforts are based on target-group-aligned, transparent,
and regular exchanges.
Our customers are crucial stakeholders. In the chapter“Essential services and product responsibility”, we
describe how we want to fulfil the expectations theyplace on us, see the chapter “Essential services and productresponsibility”, page 16 et seqq. The City of Munich, in its
capacity of shareholder, and the citizens of Munich arealso important stakeholders. We make a broad range ofcontributions to urban life – not just as a relevant
employer, but also in the form of sponsorships andcooperations, see the chapter “SWM – a portrait”, page 6 et seq.

Our employees are also a top priority. They are essential
contributors to the provision of SWM’s services; inaddition, they themselves are customers for our offerings
and usually live in the Munich region, which means they
are part of the (urban) society we address. Our businesssuccess strongly depends on our ability to find highly
qualified, motivated, and loyal people – they are theones who shape SWM and its corporate development.
As a utility offering essential public services, we operate
in a highly regulated environment and are subject tospecial accountability. As legislation can have asignificant impact on our business activities, we also
engage in political debates at various levels, see thechapter “Corporate governance”, page 69 et seq.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 13

Sustainability management

Stakeholder

TopicsDialogue platforms

Lenders anddevelopment banks– Promotional loans and sustainable finance– Risk management– Compliance– Targets and target achievement– Product innovations– Personal conversations– Conferences

Customers– Services (energy, mobility, telecommunications,drinking water, public pools)– Product quality and safety– Environmental protection– Innovation and technologies– Personal conversations (Customer Centre, visits
at customer locations)– Direct dialogue by phone, by e-mail, letter,and through social media– Customer magazine and newsletter– Fairs and events– Customer surveys– Market research

Suppliers– Product quality and safety– Environmental protection– Compliance– Supplier portal– Personal conversations (by phone and on site)– Questionnaires– Market surveys– Audits

Local stakeholders– Infrastructure quality– Economic strength– Environmental protection– Location development– SWM, the employer– Social engagement– Innovation and technologies– Personal conversations– Information events– On-site visits and facility tours– Construction site communications (information
sheets, construction site map, press)

Media– Innovation and technologies– Location development– Finances– SWM, the employer– Social engagement– Services (energy, mobility, telecommunications,drinking water, public pools)– Press releases– Facility tours– Information events– Interviews

Employees– Health and safety– Career and professional development– Diversity and equal opportunities– Co-determination– Work/life balance– Corporate development and corporate strategy– Company and task-relevant information– Improvement and change processes– Internal media (intranet, employee magazine, etc.)– Employee surveys– Idea management– Internal events– On-site visits– Staff meetings

Networks andassociations– Energy and transport policy targets– Environmental protection– Political framework conditions and regulations– Technology development and promotion– Attendance of conferences and meetings– Contact maintenance

Policymakers andauthorities– Energy and transport policy targets– Environmental protection– Political framework conditions and regulations– Location development– Technology development and promotion– Personal conversations– On-site visits and facility tours– Information events– City council newsletter14 SUS TA I N A B I L I T Y R E P OR T 2023
Sustainability management

S TA DT W E R K E M Ü N C H E N

Sustainable development: SWM
supports the United Nations’Sustainable Development Goals
As a future-oriented company that feels committed tothe public wellbeing, we want to make relevant
contributions to sustainable development. For us, thisalso means playing an active role in achieving the
Sustainable Development Goals (SDGs).
To analyse our business activities from the perspective of
the SDGs, we held a workshop with sustainability
experts from different business segments. The various
goals and targets were discussed in this workshop.
Subsequently, we assessed our positive, and also ournegative impact on the achievement of these goals. The
evaluation of the workshop showed that we have aparticular impact on the following eight SDGs:

SDG 4: Quality Education
As one of Munich’s largest employers,
we are committed to contributing toinclusive and equitable quality education. This is why we train young people
and help them start their professional careers, see thechapter “Employees”, page 51 et seq. With SWM Education
Foundation, we help improve the opportunities of
disadvantaged children and adolescents. In addition, we
provide important information and communication
technology services for Munich’s educational
institutions, see the chapter “SWM – a portrait”, page 7.

SDG 5: Gender Equality
Active support of women’s equality isimportant to us. For example, we haveset ourselves the goal of increasing theshare of women in leadership positions
to at least 25 % by 2025. To achieve these goals, we
initiated quite a number of measures in the last few
years, such as cross-mentoring for female managers or
the “Female Empowerment” seminar series, as well as
offers to enable our employees to achieve the best
possible balance between their professional and family
lives. We have received external feedback on ourcommitment, e.g. within the framework of the Women
Career Index (Frauen-Karriere-Index) under the auspicesof the German Federal Ministry for Family Affairs, Senior
Citizens, Women, and Youth, see the chapter “Employees”,
page. 58 et seq.

SDG 6: Clean Water and Sanitation
As drinking water supplier of the City of
Munich, we provide high-quality water
to a large number of people every day.
With this, we contribute to ensuring theavailability of water and sanitation for all, see the chapter“Essential services and product responsibility”, page 22 et seq. In
addition, we conserve this vital resource by fostering
sustainable cultivation of the land around our extraction sites, see the chapter “Operational environmental
protection”, page 46 .

SDG 7: Affordable andClean Energy
According to Ban Ki-moon (former UN
Secretary-General), climate change isthe greatest challenge facing humanity.
With its renewable energies expansion campaign andits district heating vision, SWM makes important contributions to mastering this challenge see the chapter“Operational environmental protection”, page 38 et seq. We ensurethat the people in Munich have reliable access toaffordable and sustainable energy, heating, and cooling,of which a steadily increasing share is generated fromrenewable sources, see the chapter “Essential services andproduct responsibility”, page 20 et seq.

SDG 9: Industry, Innovation,and Infrastructure
Using five megatrends as ourguideposts, we are developing newservice areas to safeguard the highquality of life in the region and turn Munich into asustainably smart city in every respect. The changes inthe energy and transport sectors, in particular, as well as
digitalisation and interconnected networks, and thedesire for sustainable and local production processes
expressed by many customers provide us numerous
opportunities for new business models. We haveestablished a dedicated unit for this that exclusively
focuses on innovations, see the chapter “Essential services
and product responsibility”, page 28 et seqq.

SDG 11: Sustainable Cities
and Communities
Our entrepreneurial vision is to make amajor contribution to turning Munich
into a trail blazer among sustainable
cities. All citizens are to benefit from this. In addition to asustainable supply of essential services – electricity,
heating, cooling, and water – we see it as our task toensure affordable high-quality mobility for all people in
Munich, see the chapter “Essential services and productresponsibility”, page 23 et seqq. Our public pools as places

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 15

Sustainability management

THE SUSTAINABLE DE VELOPMENT GOAL S (SDGS)The Sustainable Development Goals were adopted in 2015 by the General Assembly of theUnited Nations as part of its Agenda 2030. They comprise a total of 17 goals and 169 specifictargets. The ambition linking all goals is to achieve a better and more sustainable future forall. This requires the participation of nations, regions, cities, as well as enterprises.

where people can gather and do something for theirhealth, see the chapter “Essential services and productresponsibility”, page 27, and our diverse social engagement,
see the chapter “SWM – a portrait”, page 7, likewise contributeto this goal.

SDG 12: Responsible Consumption
and Production
With attractive green electricity andgreen natural gas offers, see the chapter“Essential services and product responsibility”,
page 18 et seq., diverse and intermodal mobility services,
see the chapter “Essential services and product responsibility”,

SDG 13: Climate Action
SWM is addressing the challenges posedby climate change and the energy
transition. With our renewable energies
expansion campaign, we have beenbuilding a powerful generation portfolio for green
electricity since 2009, see the chapter “Operational
environmental protection”, page 38 et seq. With the help ofgeothermal energy, we provide CO2-neutral heating andcooling, see the chapter “Operational environmental protection”,
page 40 et seq. As a further major pillar of our local public
transport system after underground trains and trams, weare now electrifying our bus fleet, too, see the chapter

page 23 et seq., and renewable energies solutions for“Operational environmental protection”, page 42 et seq.

residential customers (e.g. photovoltaic plants andcharging solutions), see the chapter “Operational
environmental protection”, page 28 et seq., we support thepeople in Munich in leading a sustainable lifestyle. We
also set high standards in our daily business with respect
to SDG 12 – cases in point are environmentally benign
strategies within the framework of our numerous
construction projects or the use of renewable energy
sources for our own business premises, see the chapter

In addition, we are continuously expanding the charging
infrastructure for electric vehicles. By 2040, we moreover
want to achieve climate-neutral operation of our publicpool landscape. And we will also take our coal-fired
power-station block off the grid and convert it togas-fired operation in 2024, see the chapter “Operational
environmental protection”, page 42 .

“Operational environmental protection”, pages 41 et seq.

Essential services andproduct responsibility

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 17

Essential services and product responsibility

From energy and drinking water supply to eco-friendly
city mobility, fast Internet, and recreational offerings
such as Munich’s public pools: our services are an
essential basis for everyday life. They contribute to boththe economic strength and quality of life in Munich andits metropolitan region. As a utility providing essential
public services, it is our unique responsibility to offer all
citizens affordable services for basic needs and ensure
reliable availability of our services. In these efforts, weplace great emphasis on transparency and the provisionof product quality information to our customers.

Energy and water supply
The essential public services we provide to the City of
Munich include the energy and drinking water supply forthe city and some parts of the metropolitan region. As
such, this means that we provide the “critical services”
necessary for society to function. Accordingly, we aresubject to special statutory requirements, including
those stipulated in the German Energy Industry Act(EnWG) as the key legal basis for secure and macroeconomically efficient energy supply and the German
Ordinance for Defining Critical Infrastructures in
Accordance with the BSI Act (BSI-KritisV) with its focus
on the IT security of operators of critical infrastructures.
The responsibility for the supply reliability of electricity,gas, water, district heating, and district cooling grids is
assigned to the management team of the SWM Infrastruktur GmbH & Co. KG grid operator. The technicalmanager responsible for water extraction reports to
SWM’s Director, Technology.
Our goal is to safeguard essential services in all divisions
at all times, i.e. with as few outage occurrences as
possible. This is why we protect our critical infrastructures against any physical and digital attacks, e.g.
through strict access management, video surveillance,
redundant design of essential building services, andisolated networks. For institutions requiring particular
protection, e.g. nursing homes and hospitals, we havemade and agreed suitable arrangements and plans. In
addition, we have drawn up high-level policies for theprevention of and response to crisis situations, includinga Group policy on general principles, and rules ofprocedures for the Technology division on additional

systematic structures as well as emergency and crisis
manuals.
Since we are a “KRITIS” company – an operator of criticalinfrastructures that provides important, and in somecases even vital, essential services for the citizens ofMunich – crisis management including preparation for aworst-case scenario is a key element of our corporate
identity. A crisis is defined as a situation in which significant corporate values, such as a reliable supply to ourcustomers, and core processes are at risk and theincident and emergency management procedures
established in our day-to-day business do not suffice toadequately address these hazards. At SWM, crisis
management is decentralised across the divisions andbusiness segments in order to achieve clearly targetedalignment with the different areas of activities andchallenges. Some of our business segments that operatecritical infrastructures (energy generation, energy
distribution, water extraction and distribution) have theirown dedicated crisis management, which is also audited
and certified. When a cross-divisional event occurs,
several crisis teams may act simultaneously, with highlevel topics such as communications or human resources
being pooled centrally if required.
The outbreak of the Covid-19 pandemic created sucha situation. The measures we took to address thissituation included the set-up of a central task force forthe pandemic (“Pandemic Task Force”). When Germany’s
far-reaching nationwide Covid-19 measures ended on
1 March 2023, the work of this task force was discontinued until further notice. The energy crisis promptedby Russia’s war of aggression against Ukraine likewise
required controlled and overarching crisis managementin 2022. To adjust to the new situation and the various
regulations, we established the Gas Deficit Situation
Task Force and analysed and aligned procedures andprocesses internally and together with the City of
Munich.
Thanks to significantly lower natural gas demand andchanges in consumption behaviour on the part ofresidential customers, decreasing consumption inindustry, and a mild winter, the gas supply situation
stabilised in the year under review. High liquefied naturalgas (LNG) deliveries to Europe and the expansion of the
LNG infrastructure with floating storage and18 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Essential services and product responsibility

regasification units also made a contribution. After the
turbulent developments in 2022, 2023 was the year inwhich the European energy markets grew accustomed tothis situation. The markets adjusted to a supply situation
characterised by an almost total lack of pipeline-transported Russian gas deliveries. Accordingly, a downward
trend in prices in the gas and electricity markets could beobserved. However, price levels are still higher than
before Russia’s attack on Ukraine.
Over the medium and long term, the expansion ofrenewable energies is the best way to become more
independent of fossil energies and raw materials fromdifficult sourcing countries. This is why our renewableenergies expansion campaign and our heating transition
not only make ecological sense, but also strengthen theresilience of our energy supply. We are strongly
committed to continuing our renewable energies
expansion campaign and our heating transition.

Energy for the future
Energy is one of our core business segments. From ourfacilities, we supply electricity, natural gas, district
heating, and district cooling to our customers. We focus
on providing a secure, affordable, consumer-friendly,
resource-saving, and efficient energy supply. In the
Energy segment, we differentiate between residential,commercial, and business customers. Within the businesscustomer segment, the housing sector is of special
significance, as it is the primary target group of ourdistrict heating supply.

CONTINUED RELIABLE A SSISTANCE FROM
THE HE ATING FUND
In cooperation with welfare organisations and theCity of Munich, we set up the heating fund in 2023,
making EUR 20 million available. This fund supports
low-income households in handling the highheating costs. In 2023, approximately 19,500 Munich
citizens in 6,800 households received grants totalling
more than EUR 8.3 million from the heating fund.
And we will again provide financial assistance fromthe heating fund in 2024. The maximum annual flatrate grant is EUR 700 per individual plus EUR 300 foreach additional person in the household.

Our goal is to ensure high customer satisfaction andloyalty. Last year, we were unfortunately not able tosatisfactorily achieve this goal at all times. Temporarily
sharp increases in electricity and gas prices resulted incustomer losses in the residential and business customer
segments. We succeeded in reducing these losses byconsistently using the price reduction leeway thatemerged during the course of the year. The implementation of the complex energy price caps placed
additional burdens on customer satisfaction. It was
realised only with a pronounced delay as we had toreprogram our IT systems for the information of theapproximately one million customers affected in some
200 tariff constellations and clarify special cases. This also
resulted in delays in billing. We used various channels to
repeatedly inform our customers about the delays.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 19

Essential services and product responsibility

Despite the great challenges, independent surveys again
confirmed our good reputation and our customers’ highlevel of satisfaction in the year under review. For
example, FOCUS MONEY magazine selected us as“fairest electricity supplier” for the twelfth time in a row.
Similarly, we received an award from FOCUS-MONEY forbeing the fairest gas supplier. In addition, the “TopLokalversorger 2024” quality hallmark assigned to local
electricity and gas utility companies by the Energy
Consumer Portal for Electricity and Gas bore testimony
to our good value for money as well as our regional
commitment, our environmental management, and ourservice quality. This has also been confirmed by our own
studies, which are carried out by independent market
research institutes at our behest. According to a study
conducted by SZ Institute in 2024, we moreover rank
among the ten best service providers in Bavaria. For thisranking, a total of 237 service providers were analysed
and approximately 100 consumers were polled in eachcase. We are making committed efforts to maintain or
further restore these trust and competence scores.

In Munich and the metropolitan region, we generateenergy – electricity, heating, and cooling – in more than
80 energy-efficient combined heat and power (CHP)
plants, wind, hydroelectric, solar, biomass, and geothermal plants. In addition, we operate wind parks andsolar energy systems throughout Germany and Europe atsites where the wind blows more strongly and the sun
shines more often than in our region. The “Isar 2” nuclear
power station near the city of Landshut (SWM stake:25 %) went off the grid on 15 April 2023 after its operating life had been extended because of Russia’s warof aggression against Ukraine. The project aimed at
decommissioning and phasing-out this nuclear power
station has already been underway for several years; theapplication for the initial decommissioning and phasingout permit was filed in mid-2019. On 21 March 2024, theBavarian State Ministry of the Environment andConsumer Protection issued the approval pursuant to
Section 7 (3) of the German Nuclear Energy Act(Atomgesetz – AtG). Dismantling started in early
April 2024. We expect the dismantling work to be fullycompleted by 2040.
With our partner, the UK energy company Centrica, we
also engage in the extraction of natural gas. Our Spirit

An important building block for the heating transition: in 2023,
construction of a heat storage reservoir started at the “Süd” energy
location.

Energy joint venture produces natural gas in the North
Sea. This shareholding allows us to directly influence theorigin and type of natural gas production: in the UK and
the Netherlands, the production of natural gas is subject
to particularly stringent environmental and safety
standards and CO2 emissions are low compared to othercountries.
The progressing transformation to a CO2-neutral heating
supply for Munich ( see the chapter “Operational environmental
protection”, page 40 et seq.) will lead to a gradual reductionin our share of natural gas production. As an initial major
step in this direction, Spirit Energy already completed thesale of the Norwegian gas and oil fields and one British
field in 2022. In the future, the company’s focus will be
on secure and economically viable production of theremaining gas reserves, which is to gradually dwindle
away within the next five to ten years. In addition, we
intend to use the existing infrastructure for sustainable
and climate-friendly activities such as hydrogen production with subsequent CO2 storage (blue hydrogen)or hydrogen storage in depleted gas deposits (greenhydrogen). Spirit Energy’s has now received its firstlicence to store CO2 in a depleted natural gas field.
Alongside geothermal energy, CO2-neutral, i.e. decarbonised hydrogen can become an important building
block for a climate-friendly future. As long as there areno adequate solutions to hydrogen storage or technology, the use of natural gas as a “bridge technology”
will ensure a smooth transition to renewable energies.
We use natural gas in the environmentally benign
combined heat and power process with reduced CO2
emissions.

20 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Essential services and product responsibility

Furthermore, energy storage is also a fundamental
prerequisite of the energy transition as the decouplingof generation and consumption will make gradualreplacement of conventional energy sources possible.
At the same time, every additional kilowatt-hour ofstorage capacity will also increase the general supply
reliability for our customers. This is why we are taking acorrespondingly close look at this issue. We alreadyoperate battery storage systems at our Freimann
combined heat and power plant, at the Freiham energy
centre, and at the Uppenborn 1 hydroelectric power plant.
At the “Süd” energy location in Munich, the constructionof a large-scale heat storage reservoir has commenced.
The foundation was poured in 2023. The reservoir has adiameter of nearly 40 metres and a height of 50 metres aswell as a gross filling capacity of approximately 57,000
cubic metres. In addition, we have commissioned a study
on deep heat storage that is to provide us with important
insights into ways to realise such systems from a technical,
environmental, and economic perspective. These subterranean long-term heat storage systems are particularlyinteresting because they could, for instance, be used tostore the heat of the summer (e.g. generated by solar
energy) for the winter months.

SWM ’S HYDROGEN STR ATEGY

Energy generation and renewable energies ratio(in GWh and %, respectively)

When it comes to the topic of energy, three aspects
are of particular importance to us – they are known
as the magic triangle of the energy sector:

2021

2022

2023

Gas

13,71010,5207,800Electricity1)

7,189

7,734

7,434

RE ratio2)

68.4 %

72.3 %

71.2 %

Crude oil

5,550

1,920

300

District heating

5,277

4,670

4,593

RE ratio2)

16.6 %

23.3 %

24.5 %

53

61

64

RE ratio2)

74.8 %

67.2 %

60.3 %

Energy generation(total)3)

31,77924,90620,190District coolingThe values were subsequently corrected in this report. Data from previous year’s
reports are incorrect.
2)
RE = renewable energies
3)
Sums may differ due to rounding differences.
1)

Energy supply to final/end consumers(in GWh)
2021

2022

2023

13,634.5

Gas

19,665.1

15,241.7

Electricity

6,822.5

6,707.3

6,536.9

District heating

4,688.5

4,351.1

4,050.3

District cooling
Total1)
1)

53.2

61.3

63.6

31,229.3

26,361.4

24,285.3

Sums may differ due to rounding differences.

As Germany’s largest municipal utility, we see ourselves
as an important player in the emerging hydrogenmarket – even though sufficient quantities of hydrogen
will presumably not be available in Munich until the2030s at the earliest. It is very likely that major industrial
companies will be the first purchasers of hydrogen.
For private customers, green hydrogen will not play
any role as energy source in Munich, e.g. for heating,in the foreseeable future. However, climate-neutralhydrogen could be used as fuel in our central heating
plants and combined heat and power plants for district
heating or in the industrial segment. We are analysing
the retrofitting measures that would be required. Our
expectation is that the gradual technical conversionof the heating/combined heat and power plants willtake until the 2040. In addition, we see the potential ofhydrogen mainly in the seasonal storage of electricity
from renewable sources. By 2050, we expect hydrogento play a key role as seasonal storage and means to offset
peak loads.

1. Supply reliability
Munich’s energy supply is extremely reliable; we haveone of the lowest outage rates in Germany: in 2023,
supply was interrupted for only 7.95 minutes per
consumer (previous year: 10.25 minutes) in the grid
operated by SWM Infrastruktur GmbH & Co. KG. For
natural gas, we recorded an outage rate of 0.23 minutes(previous year: 1.46 minutes). Our outage rates are thus
below the German national average, which was 12.20
minutes (electricity) and 1.52 minutes (gas) per consumer
in 20221). Our customers benefit from our excellent
infrastructure, our M-Sicherheitsservice security service,and our tried-and-proven processes and communication
structures. In the transition to renewable energies, we
also take care to ensure a reliable supply to our customers at all times. In our efforts to achieve a heatingtransition, for example, we submit offers for resourcesaving heating options, while simultaneously continuing
to reliably supply natural gas to our customers. Similarly,

1)

At the time of writing, the 2023 national average outage rates for Germany
were not yet available.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 21

Essential services and product responsibility

the looming gas deficit situation prompted us topostpone the conversion of our system-relevant coalfired block to gas-fired operation ( see the chapter“Operational environmental protection”, page 42).
2. Environmental suitability
We are increasingly relying on regenerative energies
and, as a basic principle, take care to ensure economical,
efficient, and environmentally friendly use of energy andresources. Our energy offerings are becoming more andmore sustainable and are thus making an increasing
contribution to the achievement of the EU’s ambitious
targets for the decarbonisation of the electricity andheating supply. With M-Ökostrom electricity, we enable
all Munich citizens to opt in favour of a particularly
environmentally friendly green energy supply. Customers
buying M-Ökostrom Regional are supplied with green
electricity generated in the same quantity in the Munich
region. From this tariff, for every kilowatt-hour sold weinvest one cent in the construction of new renewableenergy plants in Munich and the metropolitan region.
Our M-Ökostrom KlimaAktiv product, which is available
throughout Germany, likewise goes beyond mere green
characteristics and includes an additional amount that isinvested in the expansion of renewable energies. On anation-wide level, approximately one fourth of ourresidential and business customers have already opted infavour of various green electricity products. Our
M-Kompensation Plus product offers companies thepossibility to make a contribution to the expansion,
maintenance and/or operation of renewable energy
plants in Germany in addition to compensating theirresidual emissions. We also offer mere support ofnational climate-protection projects without CO2
compensation ( see also page 30).
In our heating supply, we offer the possibility tocompensate greenhouse gas emissions as an optional
add-on to our supply contracts, either as an integral partof the product (e.g. green gas) or as a stand-alone
add-on component, depending on the customer
segment. M-Fernwärme district heating is sustainabilityoriented thanks to its use of efficient combined heat andpower (CHP) plants. What is more, the consistent
expansion of geothermal energy is gradually reducing
the CO2 load of our district heating. Our natural gas
filling stations supply M-Erdgas – a fuel based entirely on
renewable biomethane. The latter is fully derived fromdomestic organic waste, which means that no potential
food crops are used in production.

The origin of our green electricity products from renewable energies is guaranteed through certificates oforigin; in addition, they have been awarded the TÜV SÜD
eco certificate. What is more, we inform our customers
about the electricity labelling that is required by law andlist all relevant sustainability aspects on our website.
3. Cost efficiency
We want to offer fair value for money when it comes tothe costs for electricity, natural gas, and drinking water.
To diversify our raw material sources and produce as
cost-efficiently and environmentally friendly as possible,
we use a wide array of technologies for electricity andheat generation in our own plants. In addition, we havesecured our “key factors”: we have our own agricultural
fields and plots of land for biogenic materials, mining
rights for geothermal energy, as well as storage facilities.
This makes us a little less dependent on the internationalenergy markets.
For a long time, our procurement strategy resulted inrelatively moderate prices for our customers. In 2022 and2023, however, we, too, were forced to increase our
prices. The reason was the very strong and rapid global
surge in energy prices, which directly affected our
procurement costs. Since then, we have made great
efforts and even accepted a decline in revenues in Sales
to return to lower prices as quickly as possible. As of
1 April 2023, our efforts proved successful when we wereable to bring down the electricity prices for residential
customers by approximately 15 % and district heating
prices by some 23 %. We reduced the price of district
heating two more times, by a further 7 % each, in Julyand in November. Furthermore, we were able to lower
gas prices by 40 % in October 2023 and electricity prices
by a further 25 % in November 2023. In addition, we areproviding assistance to low-income Munich citizens via aheating fund that has been set up explicitly for thispurpose ( see the box on page 18).
Detailed information on the composition of theelectricity price, state levies and taxes, price-relevant
regulations, and the currently applicable prices isavailable for inspection at all times on our website,where we also explain the structure of our bills and thecalculation of the advance instalments.
Alongside the three “traditional” goals of the energy
sector, the “magical quadrangle” of SWM’s energy
management also includes social acceptance of theplants and the infrastructure required for the energy
supply including the professional way in which they arecommunicated.

22 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Essential services and product responsibility

90 %green electricity for Munich
Our green electricity generation arithmeticallyalready corresponds to more than 90 % of Munich’s
power consumption.

Two key strategic goals drive our actions in the
Energy segment:} Our renewable energies expansion campaign: From2025 onwards, we intend to generate sufficient green
electricity in our own plants to cover all of Munich’s
consumption. In 2023, we reached a nominal annual
generation of approximately 6.3 billion kilowatt-hoursof green electricity in our own plants. This corresponds
to more than 90 % of Munich’s electricity consumption, which is currently slightly lower than originally
expected. Given the rising number of inhabitants,
increasing electromobility, and intensified use of heatpumps, Munich’s demand for electricity will continue
to grow, however. We intend to cover this additional
electricity demand, too, with green electricity.
} Our district heating vision: By 2040 at the latest, we
intend to achieve CO2-neutral coverage of Munich’s
district heating requirements. In these efforts, we will
mainly rely on deep geothermal energy. We are
already operating six geothermal plants in Munich andthe surrounding region, including Germany’s largest
geothermal plant, and are planning the constructionof a seventh geothermal plant on the periphery of thegrounds housing the Michaelibad public pool. We
intend to cover the additionally required heating
supply through other heating solutions such as local
heating networks and heat pumps.
We are also continuously expanding our energy-efficient
district cooling grid. Among other things, we use cold
ground water and Munich’s underground streams incentral cooling facilities. Detailed explanations about ourapproach to generating climate-friendly or climate-neutral electricity, heating, and cooling can be found in thechapter “Operational environmental protection”, from page 32 of
this report.
In the area of decentralised energy solutions, we would
like to give citizens access to ways in which they themselves can actively support the energy transition – withoffers that are attractive from both an economic andenvironmental perspective. With M-Solar, SWM offers its
customers photovoltaic solutions for their own singlefamily homes, covering all stages from counselling andplanning to assembly to commissioning and service. An
electricity storage device and a wall-mounted EV homecharging station for charging electric cars with selfgenerated solar power can be added to the package. In
addition, we offer photovoltaic solutions for apartment
owners and tenants living in multi-family buildings(M-Mieterstrom, see page 29) and solutions forcommercial and public buildings. We sold more than
1,500 photovoltaic plants between 2016 and 2023.
These plants generate approximately 13 million kilowatthours of solar energy per annum in Munich and thesurrounding region (previous year: 10.7 million kilowatthours). This corresponds to the consumption of morethan 5,100 households. In 2023, we also added
M-Wärmepumpe to our range of offerings, a solution
providing ground-water and air heat pumps forindividual heating supply ( see page 29).
Via our Hanse Windkraft subsidiary, we are also working
towards a sustainable energy transition. Through theacquisition of legacy wind parks, their upgrading for the
future, and their continued operation (also after expiryof subsidisation under the German Renewable Energy
Act [EEG]) or their repowering, we ensure that renewableenergies capacities remain in the market despite theprevailing difficult environment. In 2023, Hanse Windkraft’s portfolio generated approximately 126 million
kilowatt-hours of green electricity. During the year underreview, we moreover launched a further business segment for the development of new wind parks. Some of
the revenues generated by the existing wind parks are
reinvested into greenfield project development. With
this, but also with investments in repowering projects,
the cycle is closed, and the entire lifecycle of wind energy
projects is served. We intend to continue on this path by
fostering consistent growth of our plant portfolio andthe project pipeline and through development ofinnovative approaches for long-term operation of windenergy turbines.

Water – the most important resource for all life
We regard access to clean drinking water as a fundamental right. At present, we are covering the water needsof approximately 1.6 million people. Three drinking water
catchment areas supply the city of Munich: the Mangfall
valley (75 %), the Loisach valley (15 %), and, to coverdemand peaks, an area of moraine deposits east of
Munich known as the “Schotterebene” (10 %).
Together, these areas supply one of Europe’s best
drinking waters. Each individual litre comes to ourSUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 23

Essential services and product responsibility

customers fresh from the source; we do not add any
treatment substances to Munich’s drinking water. Our
M-Wasser thus satisfies top quality standards and boasts
analytical results that are significantly below the strict
limits permissible under the German Drinking Water
Ordinance (TrinkwV). In addition, M-Wasser is a low-costand environmentally friendly refreshment.
The quality of M-Wasser is regularly tested all along the
supply chain. We analyse more than 1,200 samples amonth. To protect Munich’s future drinking water supply
and sustainably safeguard its high quality, we encourageorganic farming in the catchment areas and make surethat soil and water are protected in the cultivation of theareas in the vicinity of our extraction plants. In addition,
we invest in our extraction plants, overhead reservoirs,
and pipework system.
Extreme weather events such as torrential rainfall or
flooding may impact water quality in the threecatchment areas. Even in such difficult situations, twoplants using ultraviolet light guarantee impeccabledrinking water. UV light has a much broader spectrum ofeffectiveness than chlorine; in addition, the use of thismethod avoids the formation of organochlorinatedby-products. This purely physical process ensures secureand reliable drinking water disinfection. No foreign
substances are dispensed into the water, and the taste
remains unchanged, too.
Water extraction (in million cubic metres)
2021

2022

2023

Pipework system/
drinking water inflow

110.2

111.0

112.2

Pipework system/
drinking water
outflow

97.1

96.8

1)

Thereof supply tocustomers

95.3

94.6

1)

Water loss (3-year
average)2)

0.36

0.39

1)

At the time of writing, the 2023 figures were not yet available because the volume
supplied to customers is recorded on a rolling monthly basis until the end of 2024.
2)
Loss calculation based on 3-year averages. This indicator has been calculated in
cubic metres/(h×km) based on the guidelines issued by the German Technical andScientific Association for Gas and Water (DVGW). The reported water losses are
based on the requirements of the applicable standard, DVGW W 392. This loss
score indicates the technical water losses between the inflow into the pipe systemand building water meters.
1)

Mobile in Munich
People’s mobility behaviour is subject to continuous
dynamic change. Various modes of transport are
combined in what is called multimodal mobility. Our
MVG subsidiary is responsible for most of the public
mobility in Munich. It is Germany’s second-largest

municipal transport company and offers its passengers
state-of-the-art and environmentally friendly vehicles,
highly qualified employees, and extensive informationand services. In addition to the “traditional” local public
transport system with underground, bus, and tram
service, its offerings also include individual mobility
services such as the MVG Rad bike rental service anddigital services such as the MVGO app. We link our services
at mobility stations, facilitating smooth transition frompublic transport to individually usable offers. The goal:
individual mobility without a car of your own – reliable
solutions that are available at any time and everywhereand fulfil our customers’ respective mobility needs.

We have defined the following goals in the areaof mobility:} By 2035, we will electrify our fleets.
} Continually, we will – to the extent to which ourfinancial resources permit – expand our service
offerings to keep pace with the growth of Munich andthe metropolitan region and proactively support themobility transition.
} Continually, we will improve barrier-free access in ourvehicles and stops/stations.

24 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Essential services and product responsibility

The modernisation of the Sendlinger Tor underground hub has largely been
completed. The mezzanine floor with new stores was inaugurated in 2023.

In 2023, the staff shortage discernible throughout theindustry again made full service temporarily impossible
on certain MVG lines. At the same time, however, MVG
has adopted innovative approaches to recruit new
employees, especially drivers. After the success of the job
application tram, a job application underground train anda job application bus now also offer prospective
candidates an easily accessible possibility of obtaining
information on the profession of driver and, in a best-casescenario, immediately signing an employment contract.
The customer satisfaction survey conducted by MVG in
2023 again illustrated the elements of MVG‘s offers that
customers consider to be particularly important and theirlevel of satisfaction with MVG‘s services. Many passengers regard short travel times to their destinations andon-time service of their means of transport to be (very)
important. In addition, they expect high service frequency and a dense route network as prerequisites for
optimum use of MVG’s offers for their mobility needs.
Other important factors (especially in the event of service
disruptions) are passenger information – delivered
primarily digitally and in real time – and staff members’
customer orientation. The eco-friendliness of the MVG
means of transport is also a high priority for customers:
85 % of them considered this aspect to be (very) important in 2023; by using the MVG system, they want tomake a contribution to climate protection. MVG’s investments in this area were rewarded by customers in theirsatisfaction scores in 2023, too: 95 % of the survey
participants who considered “eco-friendliness” to beimportant, were (very) satisfied with MVG.
Underground trains and trams are already powered bygreen electricity. Together with our MVG subsidiary, we
have set our sights on achieving 100 % electromobility inlocal public transport and are also electrifying our bus
fleet. In 2023, we put 21 new MAN Lion’s City electricbuses in operation. These electric buses use a design
without engine tower, offering passengers more spaceand comfort. At present, 61 out of MVG’s 400 buses areelectrically powered. A further 71 electric buses havebeen ordered. Please find more information on this topic
in the chapter “Operational environmental protection“ onpage 42 et seq.

In addition, we are expanding and modernising our tram
and underground systems. Construction of the expansion of the western tangential tram route started in
2024, and we intend to commence tram service section
by section from late 2025 onwards. Concurrently, we
intend to realise further tram routes. In the undergroundsystem, the focus is on infrastructure expansion.
Construction of our largest underground infrastructure
expansion project, the U9 underground route from the
Implerstraße stop to the Schwabing neighbourhood, isslated to commence in the 2030s.
Operational facilities are also cornerstones of themobility transition. After all, parking areas, depots, andworkshops are prerequisites for an expansion of ourservices. SWM and MVG are already planning and/or
constructing various sites. In this respect, we cooperate
closely with municipal and state authorities and attach
great importance to early and transparent involvementof policymakers and local residents.
Furthermore, numerous modernisation and refurbishment measures in the underground system, which is
now more than 50 years old, are on our agenda, the goal
being to maintain and enhance the system’s performance capabilities. In the period until autumn 2026,
a total of 125 escalators throughout the system will be
exchanged. One key milestone was already reached in
2023: after seven years, the complex modernisation
project at the Sendlinger Tor underground hub haslargely been completed. This important hub in the
Munich underground system has been converted into abarrier-free, future-proof stop with expanded capacities.
In December 2023, we inaugurated the mezzanine floor

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 25

Essential services and product responsibility

including new stores. The final work, including at theplatform levels and the surface, will be completed in 2024.
Digitalisation projects are also contributing to making
mobility in Munich easier to access. Among other things,
we have developed our MVGO app into a mobility
platform that combines local public transport and sharing
in Munich and the surrounding region. It offers users
extensive local public transport functions such as
HandyTicket mobile ticketing, connection information,
disruption reports, live departure times, and much more.
In addition, it offers multimodal options for individual
mobility in the city. The app supports fast and easy
booking of the bikes of the MVG Rad bicycle rental service
as well as electric scooters and bikes. Additional mobility
services will gradually be included. Furthermore, the app
now also displays the locations and availability of public
SWM charging stations for electric cars and taxi ranks.
For tomorrow’s local public transport, MVG is moreover
playing a leading role in various research projects
studying possibilities to use digitalisation and autonomous driving in bus systems. In the MINGA project, forinstance, we have joined forces with the Mobility Department of the City of Munich and the Deutsche Bahn
subsidiary ioki to develop a ride-pooling system withthree to five automated vehicles in on-demand operation.
This is a research project – but Munich’s citizens shall get
an on-demand service as early as in 2025. With MVG
MIJA, MVG intends to expand its local public transportofferings. This service aims to offer flexible booking ofelectric vehicles with a capacity of 6 passengers via app.
Entry and exit points and the destination of the drive will
be defined individually by the users.

MOBILE THROUGHOUT GERMANY WITH A
SINGLE TICK ET
Since April 2023, MVG has also offered the“Deutschlandticket”. This special flat-rate ticket allows
passengers to travel on all regional and local public
transport systems throughout Germany without having
to think about fare and transport association limits. The
ticket is available in a monthly subscription model asboth chip card and mobile digital ticket in the MVGO
app. Since August 2023, a discounted subscription model
has been available for young people in traineeships
and the voluntary service as well as university students
throughout Bavaria.

In the MINGA research project, SWM and MVG are working
on the evolution of local public transport in Munich.

We also create digital networks for Munich
The continuing digitalisation as well as electricity andCO2 savings make fibre optics indispensable for theMunich of tomorrow. Together with our M-net
subsidiary, we began to roll out one of Europe’s largest
continuous fibre-optic networks as far back as in 2010.
At present, approximately 70 % of Munich’s households
are already benefitting from our powerful fibre-optic
network, and we are connecting additional neighbourhoods to this high-performance network. Together
with M-net, we had hooked up a further 3,300 buildings
with 18,400 households and commercial businesses by
the end of 2023. At present, approximately 650,000
private households and commercial businesses in Munich
have direct access to high-speed Internet solutions.
M-net and SWM are placing increasing emphasis on
fibre-to-the-home (FTTH). Unlike fibre-to-the-building(FTTB), FTTH allows us to provide the highest bandwidths in each individual flat, creating the prerequisites
for smart city applications in the buildings.
In addition, we are installing what are known as “service
junction boxes” in the basements of the buildings for theconnection of smart-meter gateways. These boxes cansend data digitally to the meter operator. PV plants andother technical installations that need a communication
port can also be connected to these boxes. Over time,
M-net plans to make a smart-city product available forthis purpose.

26 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Essential services and product responsibility

Through cooperation agreements, SWM and M-net haveopened their high-performance fibre-optic network toother telecommunications providers. There are several
reasons why open access is a sustainable approach. First,
it avoids the expensive – and unnecessary – constructionof parallel infrastructures in addition to existing fibreoptic networks. Second, use by several providers leads tobetter utilisation of the capacities offered by fibre-optic
technology. And third, the cost-intensive further expansion of the network can reasonably be focused on areasthat have not yet been hooked up.
In addition, we are also banking on mobile Internet
offerings: the City of Munich has commissioned us andM-net to set up free WLAN (WiFi) hot spots throughout
the city. In April 2024, more than 700 public accesspoints were already available. These hot spots thus
cover some 150 public squares and more than 500 publicbuildings, schools, etc. In addition, many other hot spots
have been and will be installed within the framework ofcooperations, e.g. with municipal hospitals andMÜNCHENSTIFT, an organisation that provides care

and age-friendly accommodation for the elderly. In
total, we recorded more than 39 million logins in the
M-WLAN in 2023.
For applications in the “Internet of Things” (IoT), in
particular, we are also installing a city-wide long-range
radio network: LoRaWAN. Such a network allows
machines to communicate when sensor systems, smart
meters, or even household appliances are incorporated.
The cost-efficient and energy-saving network is an
important milestone on Munich’s path towards
becoming a smart city.
The M-Login single sign-on now has more than 2 million
accounts. Via their M-Login access data, users cansecurely and conveniently access various web and app
offers provided by many service partners from the areasof mobility, supply, leisure, and culture. Users manage
their personal data in a time-saving manner at a single
location: their M-Login account. A payment function for
SEPA (Single Euro Payments Area) direct debits and credit
card options moreover allows users to handle payments
quickly. In 2023, muenchen app, which we developed
together with muenchen.de and the München Ticket
ticketing service, was added to the offers accessible via
M-Login. This fast and easy service allows users to buy
digital tickets for numerous leisure attractions in Munich,from municipal museums or theatres to the M-Bäder
public pools to the Deutsche Museum and Tierpark
Hellabrunn (Munich’s zoo).

FIR ST PL ACE IN THE SMAR T CIT Y INDE X
In the nation-wide 2023 Smart City Index, the City of
Munich reached the No. 1 position for the first timewith a score of 85 out of a possible total of 100 points.
Hamburg ranked second with 83.9 points, followed
by Cologne with 83.2 points. The Smart City Index
is compiled by Bitkom, the German information,
telecommunications, and new media industry association. For the ranking, all 81 large German cities(with at least 100,000 inhabitants) are analysedand evaluated based on their respective state ofdigitalisation. Munich owes its good ranking also to
SWM’s contributions. After all, we are playing a keyrole in the transformation of Munich into a smart
city by proactively investing in new technologies
and driving digitalisation forward in our main
segments: infrastructure, sustainable energy supply,
environmentally benign mobility as well as informationand communication technology.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 27

Essential services and product responsibility

We transform Munich into a cityof swimming pools
Munich’s public pools are good for people’s wellbeing.
The municipal essential public services comprise 18
modern indoor and outdoor pools, ten attractive sauna
facilities, the Prinzregenten ice stadium, and two modern
fitness centres. These facilities enable many people toexercise, relax, and spend time with family and friends at
acceptable prices. What is more, a large number ofchildren learn to swim in our classes every year.
Since 2019, the positive contribution of Munich’s public
pools to society has been confirmed by their public
wellbeing inventory, which is audited by an external
party. Munich’s public pools not only successfullycompleted a new round of inventory preparation in
December 2023, but even improved their alreadygood scores further, from 391 points (2019) and
426 points (2022) to 451 points. For more information,please see the Public Wellbeing Report at
www.swm.de/gemeinwohlbericht

Indoor andcombination
pools

Statutory regulations and guidelines must be followed inpool operation. They include the German Infection
Protection Act (IfSG), the DIN 19643 standard for poolwater treatment, technical regulations, and guidelines
issued by the German Association for the Recreationaland Medicinal Bath Industry (Deutsche Gesellschaft für
das Badewesen). To keep up with these requirements,
M-Bäder employees regularly attend training workshops.

Price components
and contributions

Public pool operation is cost-efficient, but not profitoriented. Financial losses incurred in this businesssegment are borne by Stadtwerke München Group. To
drive forward the sustainability of our public pools, wehave defined two climate-relevant goals:} The Georgenschwaige pool is to be transformed into

33.5 % Personnel
expenses

30.4 % Other operating
expenses

15.3 % Depreciation
14.1 % Energy, water,
waste water

11.21 EUR
SWM contribution

17.56 EUR
per visitor pricerequired to cover
costs

6.35 EUR
Bather contribution

the first CO2-neutral swimming pool by 2025, reducing
total emissions by approximately 100 tonnes CO2e
( see the chapter „Operational environmental protection“,
page 44).
} By 2040, we intend to switch all M-Bäder public pools
to CO2-neutral operation.
Furthermore, we are driving numerous other topics
forward such as sustainable construction, sustainability
in the supply chain, waste avoidance, and biodiversity.
For further information, please see the chapter “Operational
environmental protection”.

6.7 % Cleaning
The data refers to the 2022 financial year and reflects regular operation.
Large investments (pool refurbishings, new construction projects) havenot been taken into account.

28 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Essential services and product responsibility

Innovation safeguards continued
high quality of life
The world is in a state of flux, and the population onearth continues to grow rapidly. Among the numerous
economic, technical, and social developments, fivemegatrends will have a particular impact on our futurebusiness.
} The energy transition is being driven by the need andwillingness to protect the climate. We needalternatives to fossil fuels, not least because energy
demand continues to increase worldwide. Renewableenergies are already omnipresent today – but the
future of energy generation belongs solely to them.
} Large cities are growing. According to the Bavarian
State Office for Statistics, Munich will have a
population of approximately 1.6 million by 2042 – anincrease of roughly 6 %.
} People will want both get a reliable supply of essential
services and also be mobile. For this, we need amobility transition trending to innovative andenvironmentally benign solutions.
} Everything is becoming more digital. The range of IT
solutions is expanded every day, and digital tools areused in virtually all spheres of life. This is changing
customer relationships, business models, andworkflows.
} Health ranks among the most important personalvalues. To ensure participation in society and an active
life for all, people must also be given opportunities tomaintain their physical fitness.
We believe these trends offer opportunities for ourcompany. Alongside our traditional businesses, wetherefore intend to develop new service areas that help
safeguard the high quality of life in the region.

Energy transition& climateprotection

Metropolitanisation

MEGATRENDS
Mobilitytransition

Digitalisation

HealthNew business models
In our Group, we have established a unit that explicitly
focuses on new business models. We continuously
validate our solutions and products together with ourcustomers and, if they prove successful, we lead them toprofitability. Our innovation process aims to minimise theassociated business risks. If a business idea does not fulfil
the criteria for long-term profitability, it is discarded
during this process.
In the development of innovations, we pursue a clear
financial goal: by 2025, new products and services shallaccount for an EBIT share of at least 3 %. To optimise ourportfolio and make processes more efficient, we are
moreover driving SWM’s digital transformation forward.
Changes in the energy and transport sectors, digitalisation and interconnected networks, and the desire
for sustainable and local production processes expressedby many customers open up numerous opportunities for
new business models for us. We have therefore expanded our product and service range in the last few years
and are increasingly supplementing the traditional
supply services with personalised and decentralised
energy solutions such as photovoltaic plants forhomeowners.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 29

Essential services and product responsibility

With our tenant-geared M-Mieterstrom product, we alsooffer people living in apartment buildings an opportunity to benefit from reasonably priced solar electricity
generated on their own roofs. We lease roof space frombuilding owners, on which we install solar plants(contracting model). Residents can directly use theelectricity generated, and any excess electricity is fed
into the grid. And when the sun does not shine, we
supply green electricity. In addition to the contracting
model, we have expanded this business model by adding
a leasing option and also commenced operation of thefirst tenant electricity system in this connection. In thisleasing model, building owners install the PV plantthemselves and subsequently lease it to SWM.
M-Ladelösung is a charging-as-a-service approach forcharging electric vehicles with green electricity – for bothbusiness and residential customers. One of the services
we provide in this context is dynamic load management,
which prevents overloading and subsequent removal ofhouse connections. We can also equip duplex parking
spaces or open parking spaces without walls (e.g. in anunderground car park) with a “wallbox” station for safe
charging of electric cars. This also applies to parking
spaces for customers. With the introduction of
M-Ladestrom Pur, we expanded our electromobility
offerings even further. This green charging tariff forelectric vehicles enables electromobilists who do notcurrently use any M-Ladelösung charging solution to

Since 2023, SWM has also offered heat pumps.

charge their vehicles at more favourably priced conditions than the ones offered by regular household
electricity.
In the future, we want to make further progress in the
expansion of the charging infrastructure. In these efforts,
we are increasingly focusing on fast-charging technology
and have already successfully put HPC and DC charging
stations in operation. Further installations are already inthe planning stage. With charging power in excess of
50 kilowatts at DC stations und more than 150 kilowatts
at HPC stations, fast-charging stations are much more
powerful than traditional AC charging stations. What ismore, they considerably shorten vehicle charging periods
and downtimes, thus offering users a clear added value.
Our offerings include fast-charging stations for private
and publicly accessible locations such as parking spaces
for customers.
For the heating transition, we continue to expand both
geothermal energy and our district heating grid. To alsooffer people future-proof heating solutions in areas
where we are unable to offer district heating, we
expanded our portfolio in 2023 to include M-Nahwärme
local heating infrastructure and M-Wärmepumpe heatpumps. Local heating infrastructure can supply heating
to several building, entire neighbourhood or settlements. While district heating is produced in large
plants, the local heating infrastructure uses local energy
sources in the immediate vicinity of the buildings to besupplied, e.g. ground water. For the individual self-supplyof single-family homes and apartment buildings, weoffer M-Wärmepumpe ground-water and air heatpumps.
We want to join forces with our customers on our path
towards a climate-neutral Munich. For example, we offer
our business customers an opportunity to offset
unavoidable greenhouse gas emissions (e.g. emissions

30 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Essential services and product responsibility

associated with their vehicle fleets, production, logistics,
events, or travel activities) via our M-Kompensation Plus
product. In this product, we combine certified CO2compensation through investments in high-quality
international climate-protection projects with anadditional national commitment. We use the shareallocated to national climate protection for theconstruction, maintenance and/or operation ofrenewable energy plants in Germany. Companies canchoose freely whether they want to compensate CO2 byfunding international climate-protection projects oradditionally also make a contribution to local renewableenergies. Our new M-Klimabeitrag Deutschland offer
also gives them the option to exclusive make a contribution to the funding of local renewable energies plantsin Germany.

of data science, AI, and machine learning, such digital
twins can, for example, be used for automatedgeneration of forecasts, alerts, anomaly detection, andother complex calculations. Examples include leakage
detection in the drinking water system or the digital twinof the MVG bus fleet. The latter can be used for close-toreal-time transmission of information from the vehicles
to the operations control centre. This facilitates more
efficient deployment planning of the (electric) bus fleet
and the associated maintenance and repair processes.
The data base of the bus fleet also allows us to calculate
the energy consumption of past trips and enrich thisinformation with additional telemetry, timetable, andweather data. On this basis, we have developed amachine learning model forecasting the energy required
for future electric bus trips. We use the results for
deployment planning and charge management.

Innovative technologies and research projects
We use technologies such as the Internet of Things (IoT
for short), artificial intelligence (AI) or augmented reality(AR) for data-driven optimisation of operations andprocesses in the organisation, for efficiency enhancements in our work, and for improving our range ofofferings.
For example, we reproduce technical infrastructures of
SWM as what are known as “digital twins”. With the help

Another example is an app we have developed for thesale of our M-Wärmepumpe heat pumps. With the helpof AR, this app can display virtual 3D models of various
heat pumps and thus support on-site customer advisory
services. A tablet is used to capture the environment andselect the desired heat pump model, which is thenvisualised on the tablet. The app shows customers how
the heat pump would look like at their residentialbuilding and where it would probably be placed.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 31

Essential services and product responsibility

We also increasingly use AI in daily work routines. For
example, we rely on an AI-powered translation function
to make communication easier with employees andbusiness partners whose native tongue is not German.
Furthermore, we use a speech-to-text transcriptionfunction to support deaf employees in their communication with colleagues. Last year, we moreover
equipped our employees with an internal ChatGPT
version.
The gradual addition of a variety of new technologies toour portfolio can make a valuable contribution to abarrier-free and inclusive work environment, makeevery-day work easier for all employees, and help us
improve our service.
In addition, we are involved in various research projects.
One example is the unIT-e² project, where we have been apartner since August 2021. This “Real Lab for Networked
E-mobility” is striving for intelligent and safe integrationof electromobility into existing and future infrastructureswith a view to satisfying the demands of the transformation of the energy system. Over a period of three
years, project partners from a variety of industries – fromcar manufacturers to grid operators – will jointly develop
and test solutions. unIT-e² will thus make a major
contribution to a sustainable renewal of the mobility
sector that is accepted by society. At the same time, theproject will address the challenges of increasing systems
integration, i.e. of electric individual mobility and heatgeneration.
Supraconductor cables are trail blazers for the power
supply of the future: they transmit electrical power
virtually without any losses, are compact, and can beinstalled with comparatively little effort. This is efficientand reduces the burden on the environment. Together
with partners, we want to realise a supraconductor cablein Munich and test it for six months in the SWM grid. In
the first stage of the project, we developed the supraconductor components. Currently, we are building a trial
plant in the main substation in Menzing for the sixmonth test. In 2024, we will decide whether we will
install the world’s first commercial supraconductortransmission line in the Munich high-voltage grid.
We will implement all this and many more projects in the
coming years and decades. This will bring us closer to our
vision: Munich as a shining example of a networked citywith a high quality of life.

DEPLOYMENT OF ROBOT S
In late 2023, we tried out the use of an autonomous fourlegged robot in one of our combined heat-and-power
plant. Among other things, we sent the doglike robot on
an inspection tour through the power plant. The results
were convincing: the robot was able to carry out allelements of the walkabout autonomously and prove thatthe data to be captured can be delivered in consistently
high quality via the sensor technology. Based on the
results of the test and the potential of the technology,
we have initiated a project aimed at integrating robot
solutions into SWM’s operational sequences.

Operational
environmental protection

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 33

Operational environmental protection

Our environmental policy is based on the convictionthat we must protect soil, water, and air as natural
resources and conserve energy and water. We act
responsibly towards the environment, society and future
generations. This is why we drive the energy transition
forward and are committed to investing in business areas
with long-term perspectives – as outlined in our chapter
on essential services. We align internal processes andvalue chains with high-quality ecological standards andcontinuously improve them.

Environmental management
At SWM, the Management Board is responsible forenvironmental protection and management. Its members appoint the designated corporate representatives
responsible for waste, water protection, emission
control, and hazardous substances required by law.
Organisationally, these representatives and officers are
assigned to the Quality and Environmental Management
staff unit. Radiation protection officers, by contrast, areappointed by the specific organisational units impacted
because optimum performance of their duties can only
be ensured if they have the necessary connection to theoperations in question.
The Quality and Environmental Management staff unit
addresses issues pertaining to operational environmental
protection in the core Group and is the central contact
for the various specialists and managers from all SWM
business segments. The Management Representative forPreventive Environmental Protection and theEnvironmental Management Officer required under
EMAS as representative of the top executive body arealso assigned to this unit. Within the framework of the
management systems, they, together with the environmental management representatives that have been
appointed in the individual business segments, inter alia
ensure timely preparation of documentation required by
the regulatory standards, coordination of internal andexternal audit programmes, collection of evidence ofcontinuous improvements in our environmental performance, and implementation of high-level
environmental processes and procedures.
Waste, water protection, and emission control specialists
have been appointed in all organisational units wheresuch appointments are deemed necessary by the
precautionary principle in environmental protection.
They support the executives of the respective organisational units in the implementation and execution of
the requirements and regulations under environmental
law within their area of responsibility and work closelywith the Environmental Protection Officer of the core
Group on technical issues.
The Management Board is also responsible for SWM’senergy policy. Its members have appointed a high-level
Energy Management Representative who ensures
the introduction, maintenance, and improvement of
our energy management system in accordance withDIN EN ISO 50001. Further management representatives
and specialists also help perform the tasks of the Energy
Management Representative at the segment level.

Environmental and energy management representatives
INTERNALLY APPOINTED(DIVISION/BUSINESS SEGMENT):REQUIRED BY LAW (GROUP):INTERNALLY APPOINTED (GROUP):

Emission Control Oﬃcer1)

Management Representative,
Environmental Protection2)

Environmental Management Oﬃcer

Energy Management Representative

Waste/Water Protection/
Emission Control Specialists3)

Water Protection Oﬃcer

1)

Waste Inspector

1)

Hazardous Substances Oﬃcer

Management System Specialists

Radiation Protection Oﬃcer
When the same person is responsible for various legally prescribed representative functions – as is the case at SWM – “environmental protection representative”
is also used as a general term.
The Management Representative, Environmental Protection has similar duties and authorisations in business segments in which assignment of these tasks to an
environmental protection officer is not required by law – adjusted to the environmental relevance of the respective segments.
3)
At the engineer/foreman level in the individual organisational units
1)2)

3 4 N AC H H A LT I G K E I T S B E R I C H T 2023 S TA DT W E R K E M Ü N C H E N
Operational environmental protection

We operate a quality management system in accordancewith DIN EN ISO 9001 as well as environmental management systems in accordance with DIN EN ISO 14001
and EMAS (Eco Management and Audit Scheme inaccordance with the European Union’s EMAS III EcoAudit Regulation). Individual risky technical units are
certified in accordance with ISO 45001 (occupational
health and safety). With EMAS or the energy management system, we implement the requirements of theGerman Act on Energy Services and Other Energy
Efficiency Improvement Measures (EDL-G) and the Act
to Increase Energy Efficiency in Germany (EnEfG).
All subsidiaries in which environmental, quality, energy,
and occupational health and safety management systems
are applied set segment-specific annual or multi-yeartargets for themselves. Within the framework of ourenergy management, we perform energy efficiency
evaluations pursuant to DIN EN ISO 50001 at least oncea year. They provide us with important data for thecomparison of past and current energy consumption
levels and the associated influencing factors. This allows
us to identify deviations early on and take the necessary
measures, if required. As a basic principle, all processes
and activities involved are audited internally once within
the three-year certification period, and on-site walkthroughs are performed at all technical facilities. Compliance with this methodology and the implementation of
relevant measures is reviewed and audited externally on
an annual basis.
Internal training workshops are held regularly forenvironmental auditors as well as process and plant
managers. The target group of these workshops are all
employees performing audit tasks in certified areas andmanagerial staff in operational areas handling substances that are hazardous to the environment.
Workshop participants learn how to check via on-site
walkthroughs and through audits whether the relevant
applicable environmental regulations are complied within practice. SWM-specific practical examples are used toconvey the knowledge they need for implementing therules and regulations in everyday operations.

Climate protection
Our business activities result in significant amounts ofgreenhouse gas emissions. Given the current state of theart and existing economic restrictions, climate-neutral
provision will not yet be possible for many of ourofferings in the near future. Nevertheless, we willcontinue to steadily improve the carbon footprint of ourservices. After all, in our corporate strategy we have set
the long-term goal of making a key contribution to
Munich’s climate neutrality. Ambitious targets in theindividual business segments already serve the purposeof achieving this high-level goal.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 35

Operational environmental protection

To meet our ambitions, we adopted a sustainability
strategy with six high-level goals in 2023 ( see the chapter“Sustainability management”, page 10). This strategy follows
the generally accepted ESG logic, covering environmental, social, and governance concerns. The twohigh-level goals in the area of climate and theenvironment are:1.

We avoid and reduce greenhouse gas emission toachieve climate neutrality by 2040.

2.

We proactively prepare for the impacts of climatechange and ensure responsible use of water
resources.

The sustainability strategy is being refined throughspecific measures and key performance indicators (KPIs).
Among other things, we will draw up a decarbonisation
path by the end of 2024. Our yardstick in this exercise is
the net zero approach of the Science Based Targets
Initiative: greenhouse gas emissions are to be cut by morethan 90 % by actively avoiding and reducing them. Only
when all potentials have been exhausted and full
reduction is not possible shall the remaining emissions
be counterbalanced by technical solutions such as CO2
capture and storage or compensation through certificates. Our greenhouse gas inventory is the basis of ourdecarbonisation path.

Renewable energies are key for climate protection. In Munich,
SWM is placing special emphasis on expanding photovoltaics.

SWM greenhouse gas inventory
Energy consumption within the organisation1)
in GWh1,400
1,200

1,241.2
1,092.6

1.000

929.9

800
600
400
200
0
2021

1)

2022

2023

Energy consumption of the following companies: Stadtwerke München GmbH/SWM Services GmbH/SWM Infrastruktur GmbH & Co. KG/SWM Infrastruktur
Verwaltungs GmbH/SWM Kundenservice GmbH/SWM Versorgungs GmbH/major
SWM shareholdings in energy generation from regenerative sources.

As in previous years, the compilation of our greenhousegas inventory follows the market-based approach of theinternationally recognised standard of the Greenhouse
Gas Protocol and includes both direct emissions (Scope 1)
and indirect emissions (Scope 2 und Scope 3) of SWM.
Since the 2022 financial year, we have expanded theconsolidation group of our annually compiled
greenhouse gas inventory. In addition to the SWM core
Group ( see the chapter “About this report”, page 74), we now
also include all major shareholdings1) ( see the SWM Annual
Report, page 74 et seqq.).
Since we are an energy utility, our direct emissions mainly
result from electricity and heat generation (Scope 1).
Regarding the indirect emissions from the upstream anddownstream value chain, the focus is on emissions fromuse of sold products (Scope 3.11), especially sold naturalgas. In addition, we already considered selected emission

1)

Shareholdings are considered to be “major” when they are of material importancefor SWM Group from a financial perspective or due to their impact on theenvironment. Therefore, all fully consolidated shareholdings as well as all
shareholdings in the areas of energy supply and mobility have been included in
the greenhouse gas inventory.

36 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Operational environmental protection

categories in the last few years such as purchased capital
goods (Scope 3.2), waste transport (Scope 3.5), businesstravel (Scope 3.6) as well as fuel and energy-related
emissions (Scope 3.3).
In the calculation of our 2023 greenhouse gas inventory,
we once again reassessed the underlying methodology
and expanded the system perimeter in order to get an
even more comprehensive picture. For the first time, we
now calculate emissions from purchased goods andservices (Scope 3.1) and employee commuting (Scope 3.7).
In the area of waste (Scope 3.5), we now look at waste
disposal itself rather than waste transport. We were able
to close data gaps versus the previous year in both emissions from gas and electricity grid losses (Scope 1+2) andpurchased capital goods (Scope 3.2). In contrast to theprevious year, biogenic emissions, which are generated
in the combustion of biological materials (e.g. biomass)
now capture the upstream emissions of biogenic
materials in Scope 3.3. This results in a much lower total
biogenic emission level in 2023.
In the underlying emission factors, we revised our sources
and now base our calculations not only on the factors
defined by the German Federal Environmental Protection
Agency (Umweltbundesamts; UBA), but additionally
include figures taken from the ecoinvent data base. In thecalculation of Scope 3.1 und 3.2, we also use the EXIOBASE
data base. Given the new system perimeter and therevised emission factors, direct comparison of emission
levels in 2022 und 2023 is not always possible. After all,emissions from purchased goods, services, and capital
goods alone result in several hundred thousand tonnes ofGreen electricity since 1923: SWM’s Isarwerk 2 run-of-riverhydropower station celebrated its 100th anniversary in 2023.

CO2e that were not yet calculated and reported in thismanner in 2022. Similarly, we also corrected errors in themethodology used in previous years in the calculation ofemissions from the sale of electricity. This is reflected insignificantly lower emission levels.
The consequences of Russia’s war of aggression are also
reflected in our greenhouse gas inventory for 2023. Onbalance, less gas and more coal were burned than inprevious years to ensure a reliable supply. Concurrently,
however, efforts to save energy were made everywhere.
Furthermore, 2023 was the warmest year in Munich sincerecord-keeping began in 1955. Overall, Scope 1 emissions thus remained relatively constant compared to theprevious year. In 2024, the coal-fired block of our “Nord”
power station will be converted to gas ( see page 42),which will have a significant impact on our future greenhouse gas inventories.
In 2023, energy conservation efforts and a relatively mild
winter also made themselves felt in indirect emissions,notably Scope 3 emissions. Lower quantities of natural
gas sold also led to lower emissions from gas consumption
at our customers (Scope 3.11) and lower fuel and energyrelated emissions resulting from gas (Scope 3.3).
As in 2022, we captured the emission levels of the major
shareholdings of SWM Group as a whole, with theemission categories described above also being
recalculated for the shareholdings. In terms of content,
the indirect emissions of our gas shareholdings continued to play a major role. In particular, they result fromthe purchase and sale of natural gas (Scope 3.11).

S TA DT W E R K E M Ü N C H E N 37

SUS TA I N A B I L I T Y R E P OR T 2023

Operational environmental protection

Emissions Scope 1, Scope 2, and Scope 3 (in tonnes)1)
2021

2022

2023

Core Group

Core Group

Entire Group

Core Group

Entire Group

2,579,178

2,356,701

2,561,692

2,349,703

2,510,446

Scope 1CO2 equivalents (global warming potential)
ThereofGas (in tonnes)

1,383,818

929,760

1,113,626

630,094

781,907

Coal (in tonnes)

907,232

1,161,614

1,161,614

1,455,449

1,455,449

Waste (in tonnes)

245,842

224,129

224,129

204,159

204,159

7,675

9,249

24,868

8,417

63,1212,966,213

2,914,714

10,704,923

2,149,354

7,962,505

Scope 22)CO2 equivalents (global warming potential)
consisting of third-party consumption ofelectricity and district heating
Scope 3CO2 equivalents (global warming potential)
Thereof
Fuel and energy-related emissions ofelectricity
Use of sold products (natural gas)
Fuel and energy-related emissions of
natural gas

741,952

908,299

908,299

113,203

831,985

1,695,828

1,494,259

7,747,487

1,222,093

5,958,109

364,809336,139

1,225,408

234,437

719,515

319

642

7,856

96

406

Biogenic emissions
CO 2

Compared to the previous year, we expanded our system perimeter in 2023, closed data gaps, and improved the data quality (see page 35 et seq.).
Direct comparison to the previous years is thus only possible to a limited extent.
2)
Scope 2 emissions are calculated in accordance with the market-based approach.
1)

CO₂

Scope 2(indirect emissions)Purchased
electricity anddistrict heating

Upstream activities

CH₄

N₂O

SF₆

PCFs

NF 3

HFCs

Scope 3

Scope 1

Scope 3(other indirectemissions)(direct emissions)(other indirectemissions)Purchased goods
and services,purchased capital
goods, waste
disposal, businesstravel, fuel andenergy- related
emissions,employeecommutingElectricity andheat generation,
fleet consumption,
refrigerants, volatilegases such as SF6 ormethane leakages

Use of sold products

Downstream activities

38 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Operational environmental protection

Expansion of green electricity generation
We launched our renewable energies expansion campaign as far back as in 2009 – and thus earlier than manyother energy utilities. At the time, we set ourselves theambitious goal to generate sufficient green electricity in
our own plants from 2025 onwards to cover all of
Munich’s requirements. Currently, Munich’s consumption
equates approximately 6.4 billion kilowatt-hours (kWh)of electricity and is thus lower than originally forecast.
Given the prospect of a renewed significant increase inelectricity demand in the years that follow due to
Munich’s growing number of inhabitants, the expansionof electromobility, and the increased use of heat pumps,
we will continue our renewable energies expansion
beyond 2025. In these efforts, we will tap the potentialof a diverse range of sustainable energy sources, attaching a strong priority to projects in the Munich region.
To further accelerate our activities for the energy
transition in Munich, the metropolitan region, andBavaria, as well as strengthen the local expansion
campaign, we once again appointed a managing director
for SWM’s fifth division in 2023, focusing this division on
the regional energy transition. The goal of the new
Regional Energy Transition division is to pool the pertinent
professional expertise, innovative strength, and experience. The division will enable us to pursue our path
towards a sustainable energy supply even more consistently. As we are currently not yet able to generate asmuch green electricity as needed regionally, we make useof shareholdings to engage in activities in Germany andEurope that go beyond the Munich metropolitan region.

THE EUROPE AN “P OWER L AK E” MODELElectricity is generated at various sites in Europe andfed into what is known as the “integrated European
electrical grid”. From a physical point of view, thiselectricity is a combination of the output from all nuclear,coal-fired, and gas-fired power stations as well as
green electricity generation plants and is thereby madeavailable to customers in this blended form. The imageof a huge lake can be used to describe the integrated
European electrical grid. All electricity generators feed
this “power lake”, and all electricity consumers takesomething out of it. Every kilowatt-hour of electricity
generated from renewable energies makes this European
lake cleaner. Participations in climate-friendly energy
generation plants outside Munich thus make just as
much sense as our regional efforts.

Wind energy is still the most productive as well as themost profitable technology for the generation of green
electricity from renewable sources. Accordingly, windparks in Germany and Europe are a focal point of ourinvestments. The largest generators are the two German
offshore wind parks of DanTysk Sandbank Offshore Wind
GmbH & Co. KG (SWM stake: 49 %) and the Norwegian
onshore wind parks of Midgard Vind Holding AS (SWM
stake: 70 %). Their generation capacity exceeds the markof 1 billion kWh (SWM share) each. The capacity of thewind parks held by our wpd europe GmbH shareholding(SWM stake: 33 %) in its own portfolio stood at
988 megawatts in the year under review. Since 2022, wehave also expanded our activities to the servicing ofwind turbines: a dedicated in-house service team is
responsible for the maintenance of the 81 turbines run
by SWM Windpark Havelland in the German State of
Brandenburg.
In our regional projects, we mainly use solar power,hydroelectric power, and biomass as energy sources forgreen electricity generation. We are putting particularemphasis on driving the expansion of photovoltaics
forward. The City of Munich has set itself the goal ofcovering shares of approximately 10 % and 20–25 % ofmunicipal electricity consumption by 2035 and 2050,
respectively, with the help of green electricity generated
within the Munich city limits. To achieve this goal, aphotovoltaics expansion plan has been drawn up, which
will lead to PV electricity generation capacities of ca.
800 million kWh by 2035 and ca. 2 billion kilowatt-hours
by 2050. This corresponds to 11 % (2035) and 24 % (2050)of the projected direct electricity consumption in Munich.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 39

Operational environmental protection

Munich and region
14 hydropower plants
2 wind power plants
SWEDEN

6 geothermal power plants

FINLAND

46 photovoltaic plants and solar thermal systems
NORWAY

12 cooling plants/ground-water cooling systems1)
1 biomass power plant

UNITED
KINGDOMBELGIUM

GERMANYGermany

POLAND

3 offshore wind parks (North Sea)

MunichOnshore wind parks (Brandenburg, North RhineWestphalia, Rhineland-Palatinate, and Saxony-Anhalt)

FRANCE

2 solar power plants (Bavaria and Saxony)
SPAIN

Munich and region

Europe1 offshore wind park (United Kingdom)
Onshore wind parks (Belgium, Croatia, Finland,
France, Norway, Poland, Sweden)
Parabolic trough power plant (Spain)

Including shares; as of 08/2023
1)
One under construction

Munich and region
Ballersdorf (near Neuburg on the Danube)
Moosburg

Niederhummel

14 hydropower plants
Isarwerke 1, 2 and 3, Maxwerk, Stadtbachstufe, Floriansmühle,Praterkraftwerk (Munich); Leitzachwerke 1, 2 and 3 (FeldkirchenWesterham); Uppenbornwerk 1 and 2, Sempt and Wang (near
Moosburg); Hammer (near Fischbachau)
2 wind power plants
Fröttmaning, Freimann (Munich)MÜNCHEN

7 geothermal plants
Heat: Riem, Freiham, “Süd” energy location, Michaelibad1)
Heat and electricity: Kirchstockach, Sauerlach
Electricity: Dürrnhaar

46 photovoltaic plants and solar thermal systems
Munich, Moosburg, Unterhaching, Thalham, andBallersdorf (near Neuburg on the Danube)
Taufkirchen

Kirchstockach
Dürrnhaar

Sauerlach
Feldkirchen-Westerham
Thalham

As of 08/2023
1)
Under construction

Fischbachau

12 district cooling systems from ground water/undergroundstreams
Odeonsplatz, Stachus, Herzogspitalstraße, SWM headquarters,
Moosach, Dessauer Straße, Oberwiesenfeld, BMW FIZ, Laim,
Schäftlarnstraße1), Sendling-Westpark, Balanstraße,“Süd” energy location1)
1 biomass power plants
BioEnergie Taufkirchen

4 0 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Operational environmental protection“SWM is supporting the City of Munich on its journey
towards climate neutrality and is driving the expansionof roof-top PV plants forward. Wherever possible,
we are installing PV plants on the roofs of SWM’s own
properties – for example on parts of the headquarters of Stadtwerke München, on the roof of the
Olympiazentrum bus station, and on our warehouses.”
Under our M-Solar Plus product for homeowners, we are
installing an average of twelve PV plants per week. Our
M-Mieterstrom product allows tenants to also benefit
from reasonably priced and locally generated electricity.
In this model, we lease roof space from building owners,
on which we then install solar plants. With thisapproach, several projects have already been realised incooperation with partners such as the municipal housing
company Münchner Wohnen (formerly GWG andGEWOFAG) and with Stadibau, the housing company of
the Free State of Bavaria. In 2023, we deepened thecooperations with Münchner Wohnen and built up an
extensive project pipeline. Various projects are underconstruction or in the implementation stage, including
Munich’s largest tenant electricity project in the Harthof
neighbourhood.
We are also expanding the use of photovoltaics in themetropolitan region: on the grounds around ourUppenborn 1 hydroelectric power plant and in Upper
Bavaria (Ballersdorf and Niederhummel), we operate
ground-mounted photovoltaic plants. Together, these
solar plants produce electricity for more than 5,600 households. Concurrently to using our own land, we are also
searching for leased land suitable for the set-up ofphotovoltaic plants. In addition, we are developing aphotovoltaic plant on the German island of Rügen incooperation with Stadtwerke Augsburg und Hessing
Foundation and are looking into the potential installationof agrivoltaic plants on land owned or leased by us andinto the construction of floating photovoltaic plants.
With the output installed thanks to the projects already
implemented in our renewable energies expansion
campaign, our green electricity potential comes toapproximately 6.3 billion kWh. This corresponds to morethan 90 % of Munich’s electricity consumption.

SWM heating campaign
The plans of the German federal government provide for fullconversion of Germany’s heating supply to renewableenergy sources and unavoidable exhaust heat by 2045. We
intend to achieve CO2-neutral coverage of all of Munich’s
district heating requirements even earlier, by 2040, andalready developed our district heating vision in 2012 forthis purpose. Thereby, we can tap a large natural hot-water
reserve located directly underneath Munich’s surface thatcan be used via deep geothermal energy. At present, weare already operating six geothermal plants in the city andnearby municipalities, and we are promoting the expansionof this very successful technology with investments runningin the high triple-digit million euro range. On the site of our“Süd” energy location, we operate what is currently
Germany’s top performing geothermal plant.
Our seventh geothermal plant is already under construction. The plant is being built on the periphery of thegrounds housing the Michaelibad public pool and is tosupply heating for more than 75,000 Munich citizens.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 41

Operational environmental protection

SWM ’S HE ATING TR ANSFORMATION PL AN

This would make it the currently largest inner-city geothermal plant in Continental Europe. Together with theCity of Munich, we are scouting out locations for further
downtown plants. In addition, we are enhancing theoutput of our existing geothermal sites by drilling additional wells and also plan to tap geothermal potentials in
the Munich metropolitan region, including throughmunicipal cooperations. In addition to supplying
adjacent towns, dedicated lines shall also feed the heat
into the Munich district heating grid.
The increasing use of deep geothermal energy also has
an impact on our district heating grid that is approximately 1,000 kilometres long – specifically on thesection that we are still running as steam-operated grid.
The reason: the water heated to temperatures of up to
120°C by geothermal energy cannot be fed into theexisting steam-operated grid for technical reasons. Thismeans that some 90 kilometres of piping and associatedtechnical plants will gradually have to be converted to
hot-water operation. We started the conversion process
in 2022 and will presumably complete it in 2033. In
addition, we plan to solidify and expand the district
heating grid, growing it by a good 600 kilometres by
2040. In 2023, we converted additional sections of the
district heating grid in the Ramersdorf neighbourhoodfrom steam to hot water and began to hook up a newarea in Moosach to the district heating grid.

Our district heating vision is a cornerstone for the successof Munich’s heating transition, as illustrated by a study
entitled “Climate-neutral Heating for Munich in 2035”,
which we prepared in cooperation with the City of Munich. Within the framework of municipal heat planning,
we presented our transformation plan for Munich’s
decarbonisation to the Munich Climate Panel in spring
2024. The plan is a major milestone on the path towards
a CO2 -neutral district heating supply for Munich. Alongside geothermal energy, it relies on a biomass combined
heat and power plant and a new generation of plants forthermal waste treatment (if possible, with CO2 capture)at our “Nord” combined heat and power plant. In addition, the transformation plan considers the conversion ofgas-fired heat and power plants and heat plants to greenhydrogen. For areas not covered by our district heating
grid, we offer M-Nahwärme local heating infrastructureand M-Wärmepumpen heat pumps ( see the chapter“Essential services and product responsibility”, page 29). It goes
without saying that we will continue to reliably supply
natural gas to our customers for the entire duration of
the transformation to climate-neutral heating systems.

Expansion of resource-saving district cooling
A further component of our climate management is the
expansion of district cooling as a more efficient andenvironmentally benign alternative to conventional air
conditioning systems. Compared to individual cooling,
the district cooling process reduces electricity consumption by 50 % to 70 %. In this process, we use the subterranean urban stream in downtown Munich, forexample, for chilling central cooling facilities. Cold water
is then transported from these stations to buildings tocool them. Since district cooling is a closed system, there
is no far-reaching intervention in the natural water
resources.
At several locations in Munich, we moreover use cold
ground water to cool buildings, including at our new
Hybrid.M electric-bus depot, which commenced
operations in 2022. Here, district cooling from groundwater is used for cooling the charging infrastructure forthe electric buses and the server rooms. We use theresulting heat for a multitude of applications. First, we
power an open-space heating system that will keep theentrance and exit driveways of the depot’s bus hangars
free of ice in winter. This allows us to save large quantities of electricity and/or de-icing salt. Second, theresidual energy is fed into the return pipe of the districtcooling grid and can then be used elsewhere. For

42 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Operational environmental protection

example, the 114 new company flats at Postillonstraße
are heated with a heat pump that uses ground water forheating and achieves high efficiency through the warm
return water. The latter is then cooled to an extent thatmakes it possible to return it to the aquifer at a temperature that is very close to its original one. This energy
circuit with a water-cooled charging infrastructure andwaste heat recovery makes SWM a trail blazer in Europe.

Similarly, the operating life of the Isar 2 nuclear power
plant (SWM stake: 25 %) was extended in 2022 to ensurea reliable supply against the background of a loominggas deficit situation. Rather than in 2022, the nuclear
power station now went off the grid in mid-April 2023.

Demand for our M-Fernkälte district cooling service is
growing. At our “Süd” energy location, we are therefore
constructing a large district cooling centre. Alongsidecold water from the Isarwerkkanal conduit, absorption
cooling machines will allow us to use the energy from thegeothermal and combined heat and power (CHP) plants
located at this site for the operation of the cooling facility
in the future. The cooling facility will be connected to
downtown Munich via a new, approximately 6-kilometrelong pipe. After its completion, the “Süd” energy location
will have a cooling capacity of approximately 36 megawatts. This means that the plant will cover the districtcooling customer demand that is forecast for downtown
Munich for the coming years. Given the growing importance of district cooling for sustainable urban development, we are furthermore pursuing the target of
expanding the grid to a capacity of at least 165 megawatts of energy-efficient district cooling by 2030.

Exit from coal-based and nuclear power
The transition to renewable energies involves a gradualexit from fossil energies. Russia’s war of aggression
against Ukraine has slowed down our exit from coal andnuclear energy, which was scheduled for 2022.
Our original plans provided for the hard-coal-fired blockof our “Nord” power station, which is considered to besystemically important, to switch to natural gas in time forthe 2022/2023 heating season. This would have resulted
in a significant reduction in the greenhouse gas emissions
generated by its operation. Against the background of the
Ukraine crisis, however, we wanted to avoid a significant
increase in our gas demand in a period characterised bygreat uncertainties. After careful consideration of the
aspects of supply reliability, environmental impact, andeconomic efficiency, the Munich City Council decided todefer the conversion to the summer of 2024. No new
construction work is required for this conversion. The
existing plants must simply be optimised for the change
in fuel. For these activities, SWM will use the overhaul
period that had been scheduled for the summer anyhow.
Gas-fired electricity and district-heating generation willthen commence right in time for the 2024/2025
heating season.

The Moosach bus depot is an important prerequisite for bus
traffic electrification in Munich.

Emission-free mobility
Electromobility has been used in Munich for more than
125 years. It all began with Munich’s first electricallyoperated tram route. Today, MVG trams and underground trains already run completely CO2-free thanks to
the use of green electricity. As a third key pillar of local
public transport, we intend to also fully electrify bus
traffic in Munich. Consequently, electric buses will be
deployed on more and more lines. As many as 61 arealready out and about in regular operation on Munich’s
streets, and a further 71 have been ordered.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 43

Operational environmental protectioncommercial segments – currently approximately 3,000.
All charging points – whether public, commercial, or
private – are powered with M-Ökostrom green electricity. A total of 18.5 million kilowatt-hours were charged
in 2023. Next year, we plan to focus our efforts to agreater extent on the expansion of publicly accessible
charging infrastructure in the vicinity of leisure facilities
such as the M-Bäder public pools or the Munich Olympic
Park. In addition, further park and ride facilities will beequipped with charging stations. Furthermore, highperformance charging stations will be installed at
specially selected locations.

Our 92 hybrid buses also help reduce fuel consumption
and emissions. They store energy while braking, which
can then be used again for acceleration. Since 2022, wehave moreover pursued a pilot project that involves
deployment of a special MVG bus with trailer in regular
operations. The trailer has a PV plant manufactured by
the Sono Motors start-up on its roof, which generates
electricity for the operation of the air conditioning
system. In addition, MVG and the City of Munich are also
jointly rolling out environmentally friendly and interlinked shared-mobility offers throughout the city. The
MVGO mobility app brings the various transport modes
together, ensuring genuine multimodal mobility: local
public transport and sharing offers are pooled in this app
and incrementally expanded further.

Realisation of further energy saving andemission reduction potentials

Beyond local public transport, we are also committed topromoting electromobility in a clearly targeted manner.
In the Munich metropolitan area, the City of Munich andSWM are operating approximately 1,200 public charging
stations for users of electric cars – making Munich a trail
blazer in Germany. We are also operating a steadily
growing number of charging points in the private and“We deliberately reduce and limit the emission ofgreenhouse gases in our other business activities, too.
For example, we plan to convert our vehicle fleet toelectromobility by 2035.” For the passenger cars in our
fleet, we have already reached an electrification rate of
75 %. For business trips, we check whether the use of
local and long-distance public transport is cost-effective
before we consider flights as an alternative. Short-haul4 4 SUS TA I N A B I L I T Y R E P OR T 2023 S TA DT W E R K E M Ü N C H E N
Operational environmental protection

flights are to be avoided wherever possible. In addition,e-bikes and electric vehicles are increasingly used forwork-related trips between technical facilities where
possible and compliant with occupational safety
regulations. The electricity supplied to our real estate
properties is already largely generated from renewableenergies.
We intend to switch all our public pools to completely
CO2-neutral operation by 2040, focusing on measuresthat are necessary from an economic and technicalperspective. In the year under review, we updated ourgreenhouse gas reduction plan and defined further
target-achievement measures. Our strategy relies not
only on step-by-step modernisation of the structures,
but also on changes in the energy supply, for example
the use of geothermal energy or heat pumps. The power
supply of all M-Bäder public pools is based on green
electricity and local power generation in photovoltaic
plants. In addition, we plan to use electric vehicles forgroundskeeping in all public pools. The roof renovationof the Westbad public pool includes plans for the installation of a roof-top PV plant, which is to commence
operation in 2024. At the Schyrenbad outdoors pool,heat generation will be converted completely to heatpump operation. We will begin to draw up the plans forthis project in 2024, and implementation can be expected in 2025/2026. The conversion will help us avoid
approximately 281 tonnes of CO2e in the future.

MUNICH ’S FIR ST CO₂- NEUTR AL PUBLIC P OOL
In late 2022, we began to convert the Georgenschwaige
outdoor pool into a CO2-neutral natural pool. In thisproject, our main focus is on energetic refurbishment. A
dedicated photovoltaic plant is to generate electricity forthe circulation pumps and the heat pump and keep thewater temperature in the pool at a constant 22°C. Goingforward, water treatment is to be handled biologicallyby large ground filters. We are using wood as a construction material. And the modular design makes thematerials used recyclable. The reason: a modular design
makes it easier to dismantle structures back into theirindividual components. Furthermore, the pool will get a
new ramp for wheelchairs and a “beach entry” to makeit more barrier-free. The conversion project is to becompleted in 2025.

15×
less energy
Energy consumption of end-to-end fibre-optic
networks compared to copper-based transmission
technologies.

We have also ushered in the energy transition with the
expansion of our fibre-optic network: as fibre-optic
technology transmits data via light pulses and there is noconversion into electric pulses, electricity-intensive
components such as amplifiers and converters are nolonger necessary. End-to-end fibre-optic networks
therefore need up to 15 times less energy than copperbased transmission technologies. Our expansion strategy
provides for routing fibre-optic lines directly into users’
living rooms in the future, closing the fibre-optic gap
from the basement to the flat.
A further positive effect: when the entire city is equippedwith fibre-optic cables, conventional mobile communications rooftop antennas with high radiation output
can be replaced by much smaller 5G antennas with an
output of less than 10 watts, which would significantly
reduce local residents’ radiation exposure. We aregathering initial practical experiences in handling suchmicrocells and innovative Open RAN technology througha pilot project with O2/Telefónica. At particularly highly
frequented sites in downtown Munich, our partner isinstalling 4G or 5G radio cells that are linked to the M-net
fibre-optic network.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 45

Operational environmental protection

A CLIMATE- NEUTR AL TELECOMMUNIC ATIONSPROVIDER

We also involve our employees in the efforts to enhanceenergy efficiency and reduce emissions. Among otherthings, we publish our Technology division’s
Environmental Statement, prepare intranet messages
on the topic of energy, and regularly address this
topic in divisional meetings and training workshops.
All employees of Stadtwerke München GmbH,SWM Versorgungs GmbH, and SWM InfrastrukturGmbH & Co. KG are required to complete a mandatory
training session entitled “Tips for efficient energy use”.
In this session, participants are familiarised with basic
information on the energy management system
pursuant to DIN EN ISO 50001 and learn what statutory
obligations must be fulfilled by German companies andwhat contribution SWM makes to the conservation ofenergy and resources. In addition, they receive advice on
how they themselves can contribute to an efficient use ofenergy. The training session must be repeated every
three years and is also open for attendance by interested
colleagues from other group companies. In addition,
we offer financial incentives for the submission ofenergy saving ideas. All employees, as well as SWM’s
external service providers, can make suggestions
for improvements and submit ideas through theestablished company suggestion scheme.
Since late 2020, the so-called “CO2 Expert Panel” hasbeen SWM’s permanent information and exchange
platform for decarbonisation approaches. The activitiesof the approximately 30 panellists ensure a group-wide
uniform understanding and coordinate procedures. The
goals of the Expert Panel include the development ofgroup-wide assumptions, realisation of synergies in theprocessing and preparation of inquiries, requirements,
and positions, and improvements in emissions-related
data collection.

As Germany’s first “Climate Neutral” telecommunications
provider, M-net has reduced 90 % of its greenhousegas emissions in accordance with Scope 1 and 2 of theGreenhouse Gas Protocol (www.m-net.de/klimaneutral).
The company is compensating the remaining 10 %based on high standards via the ClimatePartner carbon
management software. By 2025, M-net intends to reducegreenhouse gas emissions as much as possible. In addition,
M-net is engaged in various climate protection measures.
Among other things, the company is involved in projects
aimed at reforestation of regional forests, which helps
strengthen the ecosystem. After the company alreadyplanted some 1,800 trees and shrubs on a piece ofwoodland near Munich back in 2021, the next few years
will see the growth of the approximately 10-hectare
M-net forest in Tutzing, where M-net and the German
Federal Forest Protection Society (Schutzgemeinschaft
Deutscher Wald Bundesverband e. V.) planted 1,000
climate-tolerant trees in 2023.

Water consumption – SWM core Group1)
in million cubic metres
2

1.5

1.8
1.4

1.5

2021

2022

1

0.5

0

1)

2023

Water consumed at the SWM headquarters and in the energy generation of theSWM core Group/regional energy generation (process water)

Cooling water throughput from watercourses
in regional energy generationin million cubic metres
500
400

406

408

406

2021

2022

2023

300
200
100
0

ideal water reservoir. The forest manager is a member of
Naturland-Verband and complies with this organic
association’s ecological guidelines. Because the foothillsof the Bavarian Alps are a region with above-average
rainfall, drought periods have not yet had any noteworthy effect on drinking water extraction to date.
Irrespective thereof, we continuously monitor the waterlevels at numerous ground water monitoring wells. So
far, the data collected has not indicated any changes inground water levels.
We moreover devote great attention to minimisingpipe-induced water losses. For this purpose, we use
intelligent solutions that enable us to quickly identify
and repair leaks in the pipe system. For example, the useof LoRa transmitters (long-range radio transmitters) in
the water supply system facilitates early detection ofsuch water losses.

Only accessible by bike or on foot: the Reisach groundwaterbasin lies the middle of a water protection area.

Protection of water as a valuable resource
Munich’s drinking water, which we extract from our threecatchment areas – the Mangfall valley, the Loisach valley,
and an area of moraine deposits east of Munich known as
the “Schotterebene” – is left in its natural state and alreadyhas such a high quality that no complex treatment isnecessary. Our “ecoFarmer” initiative, which was launched
in 1992, has been making a special contribution here: it has
been our vehicle for nature conservation and drinkingwater protection for more than 30 years. The former pilot
project has now become a role model for the whole ofGermany: SWM is closely collaborating with associations
promoting organic farming such as Naturland, Bioland,
Biokreis, and Demeter in order to support farmers in water
extraction areas in their switch from conventional to organic
farming. The project received an award from the Bavarianstate government within the framework of its “30 for 30”
initiative, which is promoting 30 beacon projects that areproviding a boost to organic, regional food in Bavaria. The
goal of this initiative is organic farming on 30% of the
agricultural land in Bavaria by 2030.
Another element ensuring high-quality drinking water inthe Munich metropolitan region is the water protection
forest totalling more than 1,800 hectares, which isowned by SWM. This structurally rich mixed forest helps
regulate the water balance. Its humus-creating soil
provides a particularly good filtration function for
precipitated air pollutants, with active organisms in thesoil decomposing organic contaminants. Thanks to thisnatural rejuvenation, the soil remains moist and is an

AN ANNIVER SARY FOR “ECOFARMER S”
In 2023, our “ecoFarmer” initiative celebrated its 30 th
anniversary. With this initiative, we promote organic
farming in drinking water extraction areas. We provide
funding to farmers, the goal being to offset the losses
they incur through the conversion from conventional
to organic agriculture. Back in 1993, 23 farms were thefirst to sign a cooperation agreement with SWM. In
the meantime, more than 185 farms in the Mangfall
valley and five farms in the “Schotterebene” area
have converted their farms to agricultural methods
that protect soil and water as well as organic livestock
husbandry. This has allowed us to reliably reach ourself-imposed quality target of an average of less than
10 milligrams of nitrate per litre, which is significantly
stricter than the statutory limits laid down in the German
Drinking Water Ordinance (TrinkwV). Together, theorganic farmers are cultivating an area of approximately
4,600 hectares, with the Mangfall valley being oneof the largest contiguous organically farmed regionsin Germany.

Preservation of biodiversity
In all business segments, we consider the potential
impact of our business activities on biodiversity. In many
instances, our activities have positive effects. For
instance, our water protection areas are simultaneously
important retreats for numerous endangered animal
species such as bats. Our utility-scale photovoltaic plants
also offer sanctuaries for ground-nesting birds. When weplan new plants, we use the requirements referenced in

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 47

Operational environmental protection

the “Good practices in the planning of ground-mounted
photovoltaic plants” guidelines as our yardstick.
In addition, we strongly support bees in many ways. The
number of bee colonies that have found a home at
Taubenberg hill in our Mangfall valley water catchment
area has now grown to approximately 30. The forest
manager makes sure that every bee colony has its own
territory and finds sufficient food for itself and its own
hive. At the Deisenhofen overhead reservoir and theDeisenhofen and Gleissental ecological compensation
areas, we have also put up hives for honey and wild bees.
In the greenspace of our public pools, we also help
promote biodiversity. By 2023, we had converted morethan 8,000 square metres into flower meadows, which
are showing a promising development when it comes tobiodiversity. In addition, we are planting more trees on
the grounds of our public pools. In 2023, we developed abiodiversity approach in cooperation with an external
service provider. With the help of a geographic information system, a comprehensive analysis of all available
data on biological biodiversity was carried out at the
public pool locations and in their immediate surroundings. From this, an assessment of the current andpotential biodiversity position was derived for every site.
The results are being compiled into a comprehensive
biodiversity strategy, which provides for near-term
implementation of small-scale measures such as insect
hotels, bat boxes, or greenspace creation. In addition, ananalysis is being performed to determine what measures
can be realised over a medium-term horizon and, above
all, in new construction projects. Possibilities include theinstallation of photovoltaic plants or façade greening.

Use of environmentally benign supplies
We also protect the environment in the use of operating
supplies and building materials. For example, a project
launched in 2020 focuses on the substitution of sulphur
hexafluoride (SF6), an insulating gas that is extremely
harmful to the climate, with climate-neutral gases inelectric distributions systems. Use of the latter gases at
the high-voltage level is in the implementation phaseand will be taken into consideration in the tenders forthe next substations. And the use of SF6 -free switchgearsis also being tested at the medium-voltage level: one
medium-voltage plant, installed in a concrete compact
station, was incorporated in the SWM grid andcommissioned in April 2024. Further plants shall follow
in 2024 and 2025.
In our public pools, we have already noticeably reduced
the consumption of resources and the usage of environmentally problematic substances throughmodernisation efforts. For example, we have analysed
the environmental impact of the substances used forbathing water treatment in a life cycle assessment. For
cleaning, we use environmentally benign procedures andcleaning agents as much as possible. In drinking water
extraction, plants using ultraviolet light for disinfection
help us avoid the use of chlorine gas.

About

80,000 m²
The area we want to convert into flower
meadows – this corresponds to 20 % of thegreenspace of our public pools.

ECO - FR IENDLY CONSTRUC TION
In our wide range of construction projects – e.g.
company flats, offices, or workshops –, we bank onsustainable, life-cycle-oriented, climate-friendly, andrecycling-friendly construction. In these efforts, we
comply with concrete guidelines and measures such as:} Consistent use of renewable energies} Increased use of wood construction and secondary

components and materials} Simple designs and avoidance of complex building
technology such as air conditioning systems} Promotion of sustainable mobility on the part of theusers} Adjustment of space allocation formulas, creation ofcommon areas} Climate-resilient outdoor areas, sponge city principle} Stock conservation and avoidance of demolition
In late 2023, the Real Estate segment developed its
own sustainability strategy with a view to harmonising
our requirements for new construction, refurbishing,existing buildings, and neighbourhood development. In
the future, our yardstick will be specific key performanceindicators (KPIs) with ambitious targets from today until
2040. We have asked the German Sustainable Building
Council (Deutsche Gesellschaft für Nachhaltiges Bauen;
DGNB), in which we have been a member since 2022,
to certify several new construction projects under thelatest Gold Standard.

Employees

Nachhaltigkeitsmanagement

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 49

Employees

For our employees, we are a reliable and socially oriented
employer with a forward-looking strategy, diverse andambitious tasks, and a value-based corporate culture. In
a nutshell: an employer worth working for.

comprehensive package for employees and applicants.
It includes:} Ambitious tasks in a successful company} Meaningful work content and value orientation} Opportunities for further development andStadtwerke München as an
attractive employer
Most of our employees work in Munich. We are facedwith competition in the local labour market: DAX-listed
corporations, innovative medium-sized enterprises,
start-ups, and other entities also offer enticing jobs. To
position ourselves visibly and credibly as an attractive
employer in this environment, we have put together aperformance enhancement} Demanding and encouraging leadership} Fair and appreciative treatment} Work/life balance} Flexible work options} Attractive remuneration and employee benefits} Reliability and security} Strong commitment to company-flat construction} Promotion of diversity} Broad range of training and internship positions,
opportunities for dual study programmes, and a
trainee programme

SWM employer brand

A PARTNERSHIP-ORIENTED APPROACH
Job security
Socially oriented employer
Work/life balance
Fair treatment of employees
Good working climate

We stand for making theworld in which we live andwork more secure,
successful, and sustainable
for our employees andcustomers.

SUSTAINABILITY
Economic sustainability
Environmental sustainability
Social sustainability
Value-oriented humanresources work

TRAINING & DEVELOPMENTFirst-rate training
Good further education
Personalised development opportunities
Diverse areas of deployment/responsibility

PERFORMANCE TO ENHANCETHE QUALITY OF LIFE
Ambitious goals
Mutual performanceEﬃciency & eﬀectiveness
Citizen value Munich

50 SUS TA I N A B I L I T Y R E P OR T 2023
Employees

S TA DT W E R K E M Ü N C H E NRetention of our current employees and recruitment of
new talent each have a high priority in our humanresources strategy. The Human Resources department is
responsible for all measures relating to the employment
relationships of our staff members. Four units work jointly
on the implementation of the SWM human resources
strategy: Personnel Divisional Management, HR Management and Service, HR Recruitment and Development, andHealth. The SWM human resources strategy is pursuing
the vision of becoming one of the five most attractive
employers in Munich – a region characterised by keencompetition for employees – by 2025. We measure theresult regularly via the employer ranking compiled by the
Trendence agency, which is based on a survey of threelabour market groups – students, academic professionals,
and non-academic professionals – and, since the year
under review, on a survey among pupils. In the survey
conducted in late 2020, we were already in 6th place. In
2023, we maintained this position in the overall ranking,but already reached ranks 5 and 4 among academic andnon-academic professionals, respectively.
Our strategic HR topics are subdivided into four action
areas:
Action areas and topics in HR for the period until 2025

The HR strategy is basically derived from the group
strategy. For example, our vision of becoming one of thefive most attractive employers in Munich originates in thegroup goal of ranking among Munich’s most attractive
employers. Employer attractiveness is defined by twodimensions. First, there is our external attractiveness,
which involves analysing market trends, statutory
requirements, and offers submitted by other companies.
Second, we regularly conduct internal employee surveys.
The insights gained in these surveys help us alignrequirements and working environments and reduce or
guard against potential barriers. Most recently, in 2022,
the survey’s focus was on remote working (“homeoffice”) and other working conditions after the pandemic. The overall results of this survey, in which 4,361
employees participated (response rate: 42 %), showed ahigh degree of satisfaction with the current working
conditions, with an average score of 1.92 (on a scale from
1 = completely satisfied to 5 = not at all satisfied). In
addition, the survey showed clearly that the majority of
our employees are not only in favour, but even demand
modernisation and change in their working environment. This holds true for the expectations of prospective new employees as well. The next employee
survey is being prepared for November 2024 and will belinked with a risk assessment of psychological stresses as
an additional component.

Attractive Employer
Diversity & Equal Opportunities
New Way of Working
Healthy Company
Strategic Recruiting & Employer Branding
Benefits

Development & Perspectives
Talent Management
Advancement & Development“Fortbildung 4.0” Initiative
Knowledge Exchange & Networking

Excellent Leadership
Adjustment of leadership development offers and further
development for Work Environment 4.0

Change & Reputation HR

With our HR strategy, we moreover strengthen oursustainability strategy, especially the “Social” pillar, which
includes the topics of diversity, inclusion, employee
retention, and staff development.

Recruiting staff members
To win new employees, we are already active in thestage when potential new colleagues gather information about future career choices. In 2023, we again
attended numerous job fairs and career guidance days
and also internally organised many career guidance daysof our own such as our Girls Day, our Go4MINT@SWM
event or the “Azubis machen Schule” format, where
young people attending training programmes in ourorganisation go to schools to inform the class about
their everyday work. In our dedicated TikTok accountand on the social-media channels Instagram, Facebook,and LinkedIn, we provide authentic and digital information on training opportunities and job profiles at
SWM. Some 130 pupils got to know our company
through internships in 2023.

Automation & Digitalisation(Digital) Transformation
Position Management
Strategic HR Planning

Universities also play an important role for our personnel
recruitment strategy. Through lectures, excursions, andrecruiting days, we established contacts to graduatesand students. We are pleased to report that numerous

Our aspiration is to become one of theTOP 5employers in Munich by 2025.

student deployments ultimately resulted in permanent
employment or inclusion in our trainee programme.
In the keenly contested Munich labour market, we rely
on target-group-focused formats that allow prospective
candidates to get better acquainted with SWM and its
employees, while ensuring that obstacles to applications
are as low as possible. This approach has already brought
us considerable success: thanks to these efforts, werecorded significantly more than 30,000 applications in
2023. One example of this approach is our “SWM on
Site” event series, for which we organised several
recruiting afternoons for technical professions at various
SWM sites (e.g. at the tram workshop, the “Nord”
combined heat and power plant, and our corporate
headquarters). Our job application tram was again
successfully out and about in 2023, just like theadaptation of this approach: we were able to hire more
drivers also thanks to our job application undergroundtrain and the new job application bus at the Moosach
bus depot.
In our personnel recruitment, we also assume our social
responsibility. For example, we have been engaged in“Stadtwerkeprojekt” for more than 30 years. Every year,
this project makes it possible for at least four young
adults who find it difficult to get their careers off theground to go through professional training including
associated off-the-job support and assistance by
qualified social education workers. In 2023, a total of
23 young people were supported by social education
workers within the framework of “Stadtwerkeprojekt”,
and 19 of them have started traineeships organised incooperation with SWM.
As one of Munich’s largest employers, we appreciate thededication and commitment of our employees. In return,
we offer them attractive benefits, which also play a keyrole in winning new staff members. In addition to securejobs and attractive renumeration, we create a healthy
work/life balance, see page 56, offer company flats, seepage 57, and health services, see page 61, as well as anenvironment in which our employees can enhance theirskills and have incentives to make their own contributions, see page 54.

Training and professional development
On average, at any given time some 450 young people
go through commercial or vocational/technicaltraineeships or dual study programmes combining
academic studies with vocational training in a company
setting. We are thus one of the largest workplace
training organisations in Munich. We are continuously
expanding the range of vocational professions for which
we offer traineeships and dual study programmes. We
now offer 17 different vocational professions and fourdual study programmes. In 2023, 155 (previous year: 135)
young people started their professional career in ourorganisation, of which 23 were women. In 2023, weoffered 71 % of our trainees employment after completion of their training programme (previous year: 83 %).
In addition, 33 dual study programme participants(23 male and ten female) worked for us at the end of2023, of which twelve students (seven male and fivefemale) commenced their dual studies in autumn 2023.
Ultimately, we were able to increase the share of woman
to more than 30 % – and even 40 % among new
programme entrants.
To ensure an excellent learning environment for our
young talent in the future, too, we are currently building
a new training centre on the campus of the SWM headquarters in Moosach. It is scheduled to be ready fortrainees to move in by autumn 2024. In 2024, we will add
industrial engineering and mechatronics to the range ofdual study programmes we offer.

Number of employees(breakdown by gender)
10,000

9,654

9,906

10,249

9,000
8,000

78 %

79 %

77 %

7,000
6,000
5,000
4,000
3,000
2,000

21 %

22 %

23 %

1,000
2021

2022

2023

52 SUS TA I N A B I L I T Y R E P OR T 2023
Employees

S TA DT W E R K E M Ü N C H E N

Total number of employees, subdivided by age and gender
2021

2022

2023

FemaleMale

FemaleMale

Female

Male

2,064

7,590

2,196

7,710

2,338

7,911

Thereof under 30 in %

22.4

14.8

22.6

15.4

20.3

14.1

Thereof 30 to 50 in %

46.1

45.9

46.6

45.6

51.1

47.9

Thereof over 50 in %

31.5

39.2

30.8

38.9

28.6

37.9

Total number of employees

Employees by type of contract
2021

2022

2023

Total
(number of
employees)

Female(in %)

Male
(in%)

Total
(number of
employees)

Female(in %)

Male
(in%)

Total
(number of
employees)

Female(in %)

Male(in%)

Full-time1)

8,588

17.4

82.6

8,745

17.9

82.1

9,035

18.5

81.5

Part-time

1,066

53.8

46.2

1,161

54.6

45.4

1,214

54.8

45.2

Permanent

9,293

21.0

79.0

9,526

21.6

78.4

9,837

22.2

77.8

Temporary

361

32.4

67.6

380

37.6

62.4

412

37.6

62.4

2)

1)

Full-time employment contracts are defined as all those providing for a number of working hours that corresponds to at least 80 % of the total number of hours
per week laid down in the collective agreement.

2)

Most of the temporary employment contracts have been concluded with university students. In this group, women account for a much higher share than men.

We want to open up exciting prospects for all SWM
employees. Digitalisation and technological change
require them to develop the ability to identify new
possibilities, understand them, and use them to the bestof their abilities. In our annual “SWM Dialogue”,
employees can discuss and agree to their individual
development opportunities with their managers.
Options we promote include leadership, technical, andmethodological training, development counselling, as
well as coaching and training workshops to strengthen
personal and social competencies. The focus is onenhancing employees‘ ability to learn, strengthen their

willingness to learn (lifelong learning), and ensure theknowledge transfer to our daily business. At the sametime, we encourage mutual networking through various
forums, events, or learning workshops.
With our “Ready2Grow!” talent management programme, we support and bring together employees
who have the potential for horizontal or verticaldevelopment in leadership, expert, or project
management positions. Currently, the programme
supports approximately 150 employees. In addition,
there are specific advancement programmes, e.g. in
mobility, electrical installation, or the energy sector,
which help our specialists acquire additional professional
qualifications. In the year under review, our employees
attended a total of 12,672 professional developmentdays (previous year: 11,698 days).
In leadership development, too, we greatly value theimportance of a high level of practical relevance. With
“Excellent Leadership”, we have defined a holistic
aspiration that describes what we expect of our leaders
and is the foundation of our various development offers.
In addition to technical and methodological content, thefocus is on reflexion and feedback. Furthermore, theprogrammes provide managers with an opportunity tobuild networks across business segments. In 2023, several
programmes were on our agenda. Under the heading

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 53

Employees“lifelong learning”, we offer a qualification programme forall experienced managers. Within the framework of our“M/Up” programme, we intend to strengthen all leadersin their roles. We started out by training 400 managers ina total of 50 training sessions in the year under review. In
total, 530 managers of the three top leadership levels willattend mandatory training sessions. After a revision of the“M/Up” approach, a further approximately 600 managers
are to be trained in a convention format. The aim of the“Kundenfokus@swm” project is to further enhancecustomer-focused attitudes in our organisation. In 2023,
we successfully completed this programme after all leaders
had attended it.
Managers who have been newly appointed to their firstleadership role attend our Management Development
Programme (MEP). This programme teaches them,among other things, leadership in critical situations, theoverall impact of leadership, critical discussion
techniques, conflict management, and change management. The MEP was revised and further developed in
2023. When managers take on new positions, they
always undergo “Leadership Onboarding”, which
consists of consulting and information offers as well as
mentoring and team development processes. Specificqualification programmes are offered to executives
managing other managers and executives without
disciplinary management. In 2023, our managers
completed a total of 2,147 professional developmentdays (previous year: 1,508 days). Overall, demand fortraining offers within the framework of our open
education programme increased particularly strongly in
2023 (+9 %), which was, among other things, due to thehigh number of new recruits. Among the different
training formats, the number of participants in classroom trainings surged noticeably year-on-year (+73 %).

Number of different seminars by type of training and number of participants
2022

2023

Number of
seminars(type of training)

Participants(heads)Number of
seminars(type of training)

Participants(heads)Classroom training

188

3,476

179

6,014

Virtual training

154

4,344

118

2,197

E-learning
Total

In 2023, we laid the foundation for a great number of
additional training measures. To enable business units toconvert their own content into e-learning modules, werolled out what is known as “user-generated content
process” in the year under review. Business units canmake their e-learning modules available to a certain
group of participants. In the Public Pool business segment, we implemented a training programme focusing
on the topic of de-escalation and safety in every-day
bathing operations.
In 2024, our main intention is to create organisational
synergies: from autumn onwards, we will host our training
workshops at the newly created “SWM Academy”. Thanks
to close interconnection with our trainee programmes
and the SWM Innovation Lab, this will allow us to offer
our programmes in an even more transparent andcentralised setting. The list of topics for 2024 includes
training workshops supporting employees in improving
their proficiency in German and large-scale training
programmes for the Mobility business segment.

97

51,642

113

51,453438

59,450410

59,664

Employee involvement and participation
With our “SWM connect” intranet, which we introducedin late 2022, we have created an information platform
for all employees that is not only accessible via IT
workplaces, but also via app for private and company
smartphones. This makes it easier for us to reach andinvolve our approximately 5,000 employees who do notwork in offices, but in power plants, public pools, andworkshops, etc., on construction sites, or as drivers. Prior
to the introduction of “SWM connect”, nearly half of ourstaff members did not have their own intranet access.
Now, our mobile intranet has helped us reach aregistration rate of almost 90 %, and we have seen
regular activities and participation across all terminal
devices with an average of 9,000 active users per month.
We encourage all our employees to cast unbiased andcritical eyes on their own work environment and play anactive role in its continuous improvement. Our idea
management programme allows them to suggest
improvements for the processes and procedures in theorganisation. Following an internal evaluation process,some of these ideas are selected for financial rewards.
At an annual celebration of ideas, the company
executives thank all people who have submitted suggestions. In 2023, 59 out of a total of 391 ideas
submitted were realised. They resulted in an economic
benefit of slightly under EUR 1,200,000 (previous year:
approximately EUR 300,000).

Beyond traditional idea management, we are also
striving to inspire our employees’ passion for innovationand motivate them to play active roles in change
processes. For example, we have already carried out
several idea campaigns, each dedicated to a specifictopic, where the best proposals and ideas gathered weredeveloped further in collaborative sessions. In addition,
two interdisciplinary employee communities dedicatedto innovation and continuous improvements have been
established: ImPulsGeber (pulse generators) and
PulsMacher (pulse makers). The aim of the ImPulsGeber
community is to support employees in the developmentof process improvements via a collegial adviser network,
while simultaneously enhancing their methodologicalskills. PulsMacher is a network for people interested ininnovations that provides inspirations for innovative
topics, methods, and technologies and fosters thedevelopment of innovative expertise at SWM.

Responsibility as an employer
As an employer, we stand for a partnership-oriented
approach, sustainability, education and development
aimed at ensuring a high quality of life ( see the chart on
page 49). Our employees’ working conditions must also
reflect these values.
Even before the Covid-19 pandemic, we offered our
employees numerous variations of working timearrangements, including flexible time accounts, various

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 55

Employees

part-time models, personalised deployment and work
scheduling, and mobile work options. During the
pandemic, we widely used our leeway to design work
models, especially with respect to combinations ofworking time and work location. Since then, mobile
working from what is called the “home office” has beenused to a much greater extent than before. In areas inwhich remote working from home and mobile working
are not possible, we are also striving for high flexibility,
especially with respect to working time arrangements.
To ensure that our offerings address our employees’
needs, we conduct extensive employee surveys on
various topics every four years. Aspects covered by thesesurveys also include leadership and corporate culture.
Most recently, in an interim check in 2022, our employees
were given the opportunity to express their opinions on
how they felt about the switch from the remote-working
phase to hybrid collaboration and on their expectations
regarding the work formats of the future. In the future,
we will conduct further interim checks in the years
between employee surveys. Accordingly, the next
interim check will take place in 2026, i.e. two years after
the employee survey.

The results of the survey were incorporated in new works
agreements that integrate home office and mobile
working into our daily company life to an even greater
degree. Through such works agreements, further
flexibilisation opportunities for shift models were
established in the Mobility business segment. Afterconcluding sabbatical agreements for the central units
and the Supply segment in 2022, we also finalised acorresponding agreement for the Mobility segment in
2023. Our employees regularly give anonymous
feedback to their respective managers. The results are
discussed in a joint workshop and specific agreements
are made. As an alternative to such “single-track”
feedback in the direction of managers, 360° feedback
exercises are also possible. In addition, various colleagues
are available as contacts to address specific topics, e.g.
the Equal Opportunities Officers for all questions
revolving around diversity. Furthermore, multipliers andnetworks document employees’ sentiments, opinions,and attitudes and play a liaison role between staff
members and management.

Hires and exits
2021

2022

2023

Hires

Exits

Hires

Exits

Hires

Exits

Total
(number of employees)

689

439

730

543

1,048

534

Female

159

85

225

118

298

114

Male

530

354

505

425

750

420

Under 30

228

91

281

128

299

104

30 to 50

370

131

365

211

624

207

Over 50

91

217

84

204

125

223

Thereof retirement

–

131

–

122

–

157

We continuously strive to further improve working
conditions in an effort to win new talent and retain
qualified employees. The average employee tenure is
13 years. At 2.6 % of total staff, the share of employees
handing in their own resignations in 2023 was lower
than in the previous year (3.1 %). Employee turnover also
decreased in the year under review and came to 5.5 %(previous year: 5.7 %). In addition, we welcomed a totalof 1,048 new employees in 2023 (previous year: 730).

56 SUS TA I N A B I L I T Y R E P OR T 2023
Employees

S TA DT W E R K E M Ü N C H E NBalancing private and working life
Enabling our employees to balance their professional
career with their private life is very important to us. We
therefore offer a variety of working time models andtime accounts, enable personalised work and deployment scheduling, promote mobile and remote working,and support our employees in finding childcare options. In
addition to parent/child offices and the “SWM Kindervilla”
crèche with space for 36 children, which was again
completely booked out in 2023, we hand out 15 grantvouchers for enrolment in municipal day-care centres forpre-schoolers and an equal number of such vouchers forafter-school care facilities. In cooperation with the “awolifebalance” organisation, we moreover offer counsellingregarding regular day-care options, offers for leisureactivities, and the search for au pairs.
Our partner, the Amiravita online care portal, offerscare-giving relatives counselling by phone and organises
an annual online information event on a variety of care
topics. Since 2008, the non-profit Hertie Foundation has
awarded us the “berufundfamilie” (work and family)certificate.
Use of parental leave by gender20211)

20221)

2023

Total(number of
employees)

428

435

451

Female

172

180

177

Male

256

255

274

1)

The evaluation methodology changed in 2023, and the 2021 and 2022 figures
were retroactively adjusted. Therefore, they deviate from the figures cited inprevious years’ reports.

To be able to support and assist employees with children
in the best possible way, we have established exchange
forums and various events on balancing private andworking life. With an information event on the topic ofparental leave and the associated Elterngeld/ ElterngeldPlus parental benefits, we explicitly addressed allcolleagues at SWM in order to raise their awareness ofthe existing opportunities to help make family andworking life more compatible. After all, it is still primarily
woman who account for the majority of parental leaves.
Accordingly, we are also encouraging our male
employees to practice more gender equality in thisrespect. In the future, we intend to continue to holdthis event twice a year.

Remuneration and financial benefits
In 2023, collective work agreements covered 90.6 % of
our employees (previous year: 90.3 %). As a Group
committed to such agreements, we use a number ofcollective agreements that fit the framework conditionsof our various business segments as guideposts for
employee remuneration: TV-V (utilities), TV-N (local
public transport), and, until the end of 2023, ourin-house collective agreement TV-MVG1) (Münchner
Verkehrsgesellschaft). In addition, we have a bonus
system for both employees covered and not covered bycollective agreements, which gives them a share in thecompany’s profit. In this system, we use the jointly
achieved result as our yardstick. Part-time employees
receive the same additional remuneration, fringe
benefits, etc., as their full-time colleagues, with therelevant percentage being prorated based on theirpart-time factor.
In addition, we offer various financial benefits, especiallyfor pension schemes. For example, both employees
covered or not covered by collective agreements haveaccess to employer-supported pension schemes such ascompany pensions or direct insurance policies. Further
offers are a collectively agreed semi-retirement scheme,
and the possibility to take additional vacation days
against a pay reduction. Individual employees notcovered by collective agreements as well as senior
executives have agreed monetary bonuses within theframework of their goal-setting reviews. Our remuneration packages also include benefits in kind: at theMVG Rad bike rental service, all SWM employees havefree use of bikes for up to 30 minutes per day. After thistime slot, they are eligible for a reduced price per minute.
Those who prefer to ride a bike geared to their individual
wishes can lease a bike or pedelec through our cooperation with the JobRad bike-leasing company. For employees who only occasionally need to get to work by car,we have made our parking space management more
1)

With effect from 1 January 2024, TV-MVG was incorporated into TV-N. This meansthat all employees of the Mobility business segment are now subject to a single
collective agreement.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 57

Employees

flexible since 2021. Alongside the traditional permanent
assignment, parking spaces can also be used by the day.
Currently, our trainees and (dual study) students canenjoy low-cost mobility thanks to a ticket price allowancecorresponding to 50 % of the price of the most favourable priced monthly ticket. All other employees receive a
25 % allowance for the Deutschlandticket Job, a versionof the flat-rate public transport monthly subscription
model that has been designed specifically for companies
and their employees.

flats in 2022, we launched a successful pilot project withMÜNCHENSSTIFT, an institution that provides care andage-friendly accommodation for the elderly, and theMunich Municipal Hospital Group: a total of ten flats
were allotted to these two cooperation partners via
occupancy rights. We will continue to organise suchoffers, exchange forums, and cooperation ventures in
2024, too, and pave the way for harnessing potential
synergy effects among municipal enterprises.

In addition to mobility, we offer our employees a wide
range of supplementary benefits such as gym membership cooperations, discounted electricity and gas
supplies, a contingent of company flats, and many otherfringe benefits. Information thereon can be found on theintranet, in particular, and is regularly communicated tomake sure that, if possible, all employees are aware of
the large number of offers.
Munich’s high cost of living is a great challenge for
employees in the lower pay brackets. At the same time, it
has made it harder for us as a company to recruit new
skilled employees, e.g. drivers for MVG. Since 1 January
2020, we have therefore given our employees some
additional financial leeway by paying a dedicated Munich
allowance. This supplementary payment has been
introduced for the low and medium pay grades and ranges
between EUR 180 and EUR 270 a month, depending on
the specific pay bracket. These amounts are offset against
collective-bargaining and performance bonuses.
In addition, Munich is known for being a city where thenumber of available flats is much lower than the demandfor housing. This is the reason why we launched ourcompany-flat expansion campaign. To date, we havealready made more than 1,300 company flats available toour employees. In 2023, we completed an additional
85 company flats, which will be handed over to interested
employees in 2024. In addition, we opened a further
integrated day-care centre. In the future, we intend tocontinue to make sizeable investments and, by 2030,
increase the portfolio of SWM-owned flats to approximately 3,000, located throughout the city of Munich. In
the construction of flats for our employees, we pay a great
deal of attention to the energy efficiency of the buildings,
resource-saving use of sustainable construction materials,
a sustainable approach to energy, and connections tovarious mobility offers, from public sector transport to the
MVG Rad rental bike service to carsharing.
In addition, we have explored possibilities of cooperatingwith municipal enterprises in company-flat construction
for some time. With the allotment of our new company

By building company flats, SWM also helps provide
some relief to the Munich housing market.

Diversity and equal opportunities
As a company with employees from approximately 90
nations, we are virtually as diverse as the urban society of
the city of Munich. Through diversity, we shape thefuture. We signed the Diversity Charter as far back as in2007. We want to create the prerequisites necessary forensuring that all our employees feel safe, comfortable,
and integrated into SWM, irrespective of their age,
ethnic background or nationality, gender, physical ormental abilities, religion or worldview, sexual orientationand gender identity, and social background. After all, weknow that a diverse workforce makes SWM successful
and ready for the future.
As a cross-sectional function, our in-house Diversity
Management aligns SWM’s structure and processes toensure that all employees are appreciated and motivated
to engage their full potential to the benefit of theorganisation. To achieve this goal, we address all seven
diversity dimensions at various levels. For this reason, thepromotion of diversity is firmly embedded in our group
strategy, our sustainability strategy, our human resources
strategy, and our employer brand. It pays off in many
respects, especially given the challenges that arise from58 SUS TA I N A B I L I T Y R E P OR T 2023
Employees

S TA DT W E R K E M Ü N C H E N

the shortage of specialists. Great potential can, forinstance, be unleashed by intensifying our recruitmentof women and new employees from abroad andpurposefully integrating older colleagues.
In addition, each Director has appointed a divisional
equal opportunities officer. These appointees perform
this function – as direct reports to the respective Director– in addition to their main activities. In accordance withthe “Partnership-Oriented Conduct” group works
agreement, which protects employees against discrimination and unequal treatment at the workplace, they
are the contact for all questions revolving around equal
treatment as well as any complaints. In addition, theDiversity Management unit is available for any questions
about this issue. It also manages SWM’s internal
complaint process, which has been aligned with therecommendations of the German Federal AntiDiscrimination Agency. Our strategic approach for thesematters refers to the following seven core dimensions:} Age and generational diversity} Ethnic background and nationality} Equal opportunities for all genders} Physical and mental abilities} Religion and worldview} Sexual orientation and gender identity} Social background

Adopting a holistic approach, we develop and implement
suitable activities, measures, and instruments. All
employees are to be apprised of the seven core dimensions.
To achieve this, we already present the topic of diversity
and the associated internal networks within the frameworkof our onboarding programme for new employees. There
are now three diversity communities at SWM: the in-house
women’s network “Die Expertisen“, the queer network“Proud@SWM”, and the network for barrier-free access“Die Barrierefreien”. These communities have been createdby employees themselves rather than being set up by the
HR function. Staff members actively shape thesecommunities in addition to their main professional
activities and are in close contact with our Diversity
Management, which supports them in their efforts.
Our Management Development Programme (MEP)
likewise addresses not only topics such as “work/lifebalance”, but also diversity, raising executives’ awarenessof this issue. In 2023, we placed a special focus on the
topic of “unconscious bias“ or thought patterns andprejudices we are not aware of. For example, thisincluded the incorporation of content aimed atrecognising and avoiding stereotypes into our MEP and
M/Up leadership programmes. In addition, a wide variety

For more diversity: SWM again celebrated diversity
as partner of the Munich CSD in 2023.

of communication measures on the individual coredimensions is on our agenda. To highlight the demandfor equal pay for women, for example, we, in cooperation with the City of Munich, put the Equal Pay Tram on
the tracks for one month in March 2023. We are also
mindful of diversity in the language we use.
Women’s advancement is a special focus of our commitment to diversity. Specifically, we have set ourselves
the goal of increasing the share of women in leadership
positions to at least 25 %, if possible by 2025, but at thelatest by 2030. In the year under review, this percentage
decreased slightly, to 19.8 % (previous year: 19.9 %).
In the workforce as a whole, the share of women
increased slightly in 2023, to 22.8 % (previous
year: 22.2 %). We take this somewhat sluggish development as an incentive for further improvements.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 59

Employees

Employees by age structure and gender, 2023

6.5 %10.9 %
4.6 %

over
50

und
er
30

37.0 %

and5

029.3 %

3

0
bet w

ee

n

11.7 %

Male

FemaleOur #25for25 initiative comprises all measures aimed at
helping us achieve our strategic goals in the advancement of women. After all, we definitely need thepotential of more excellently qualified women, especiallyin times in which there is a shortage of skilled professionals. On top of that, the initiative helps make SWM
more creative, more innovative, and more customeroriented and enhances SWM’s resilience and ability tohandle change. The measures of #25for25 range fromcross-mentoring for female managers to continuous
demonstration of female role models and participationin the Girls Day to general flexibilisation measures fromwhich everybody at SWM benefits, including men.
Our offers to enable our employees to achieve the best
possible balance between their professional and private
lives are continuously developed further and not only
open to women, but to all our employees. After all, weare convinced that sustainable diversity and true equal
opportunities can only be achieved if we take a holistic
look at the system rather than specifically homing in on
individual persons, irrespective of their gender.

Total number of employees by hierarchical level2022

Management Board
Managerial staff
Employees

2023

FemaleMale

Female

0

4

2

Male

3

107

426

108

442

2,089

7,280

2,228

7,466

In the year under review, 622 employees with physicaldisabilities worked at SWM (previous year: 636). We
make manifold efforts to ensure that the work environment at SWM is as barrier-free as possible. For
instance, we closely cooperate with the Disabilities
Officer of the Works Council and examined the topic of
barrier-free digital access in 2023 by developing internal
guidelines together with key stakeholders such as
Internal and External Communications. In particular, wetake special care that newly developed apps are as
barrier-free as possible. In addition, SWM employees set
up the diversity community “Die Barrierefreien“ in 2023.
This community aims to serve as a network for allcolleagues with health-related impairments or
disabilities and all interested employees.
In our view, diversity is not only relevant to our staff, butalso to our customers, business partners, and the generalpublic. This is why we are committed to promoting equal
opportunities and raising awareness of any form of
exclusion and intolerance outside our organisation, too.
For example, we are a dedicated partner of the Munich
CSD (Christopher Street Day), participate in the pride
parade – in 2023 with our own semi-trailer truck andmore than 100 colleagues –, and are represented in thestreet festival with an information booth. During the two
weeks leading up to the 2023 Pride Week, we alreadyput rainbow flags on our buses and trams and some ofour public pools. During Pride Week itself, we hosted a
Pride Pool Party and a Trans*Inter*Bathing Day at the
Müller’sche Volksbad public pool. We were part of an art
project, for which the entrance area of our headquarters
was painted in the colours of the rainbow, supplemented
by explanations of the meaning of the colours.

6 0 SUS TA I N A B I L I T Y R E P OR T 2023
Employees

S TA DT W E R K E M Ü N C H E N

Occupational safety and health
Our employees’ safety and health are of paramountimportance for us – and relevant to our success. We
invest in strengthening their health through preventive
measures. In addition, we regularly raise all employees’
and managers’ awareness of the issue of occupationalsafety. It goes without saying that our top priority is
prevention of (work) accidents.

Safety instructions and training
The Management Board has the overall responsibility foroccupational safety and health. In many areas, it hasdelegated this responsibility to subordinate executives bymeans of transfer of duties. In each organisational unit,
responsibility for occupational safety and health within
the framework of operational activities has been assigned
to the top-ranking executive but may also be delegatedto lower levels and functions. All our directors arecounselled by dedicated occupational safety specialists.
The regulatory framework for occupational safety andhealth issued by the German government and thecorresponding rules and regulations of the German
Social Accident Insurance (Deutsche Gesetzliche
Unfallversicherung – DGUV) only define the minimum
requirements. In some organisational units of theTechnology division, we have additionally introduced thetechnical safety management framework of the utilities
sector or ISO 45001. Alongside the Occupational Safety
Committee (OSC) that is required by law, SWM has alsoestablished further contact points for employees who
have questions about occupational safety and health: theprofessional employees of the Occupational Safety and
Health staff units and the safety officers in the respective
organisational units. The various safety officers, for theirpart, present relevant issues to the Chief Safety Officers
or the OSC. The OSC meetings of the respective seniororganisational unit usually take place quarterly and arechaired by the top executive responsible.
Risk assessment is the basis for identifying and implementing requisite measures. Only when the necessary
safety measures have been taken may the manager givethe green light for an activity, permit the use of tools andequipment, or release a hazardous substance for use. For
special dangers to life and limb or the environment, theorganisational units responsible draw up specific emergency preparedness plans and communicate them to theemployees in the operational units.

The executives heading the individual organisational
units have prepared their own instruction schedules fortheir respective areas of responsibility. These schedules
show the topics in which employees must be instructed
and the intervals required for such instructions. These
safety instructions are normally presented in face-to-facetraining sessions or directly on site by the relevant
managers, or work supervisors, if applicable. Since theCovid-19 pandemic, we have also used virtual formats forsuch instructions. Managers are aided in this task byapproximately 100 e-learning modules on the topic ofoccupational safety. These modules can be completed
additionally for personalised instructions. They areallocated directly to the respective employees andtracked via the LearningManagementSystem.
In addition, our training programme offers a wide rangeof safety training courses: a total of 434 participants
were trained in 52 courses in 2023 (previous year:
55 courses with 491 participants), ranging from fire
protection assistance to occupational safety for managers. Most occupational safety trainings take place on site,where they can specifically be geared to the prevailingcircumstances and necessary requirements. For the large
number of first aid training courses, we can rely on the
support of external providers.
If an accident happens despite all precautionary measures, it is reported and analysed centrally based on a
specific flow chart. Subsequently, measures are implemented to prevent comparable accidents.
Our company doctors are responsible for counselling SWM
across all segments in all issues of occupational safety andhealth and accident prevention. They are not subject toany instructions, and the Chief Medical Officer reports
directly to the Management Board. Available occupational
healthcare resources and examinations are presented andexplained in detail to our employees on the intranet.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 61

Employees

Health protection: focus on prevention

Accident statistics for the core Group,
excluding Mobility and MVG
2021

2022

2023

Total

63

56

75

Subject to reporting obligations

44

37

56

Not subject to reporting obligations

19

19

19

Fatal

0

0

0

1,457

1,128

1,808

1.15

0.98

0.95

Work accidents

Subsequent absence days
Accident frequency
in %

2021

2022

2023

Total

28

14

30

Subject to reporting obligations

21

10

20

Not subject to reporting obligations

7

4

10

Fatal

0

0

0

Subsequent absence days

708

510

724

Accident frequency
in %

0.51

0.25

0.34

Commuting accidents

Accident statistics for Mobility and MVG
Work accidents

2021

2022

2023

Total

187

208

253

Subject to reporting obligations

143

155

179

Not subject to reporting obligations

44

53

74

Fatal

0

0

0

Subsequent absence days

4,813

7,183

8,396

Accident frequency
in %

4.09

4.60

5.41

2021

2022

2023

Total

67

60

55

Subject to reporting obligations

52

47

38

Not subject to reporting obligations

15

13

17

Fatal

0

0

0

Subsequent absence days

1,608

2,800

981

Accident frequency
in %

1.46

1.33

1.18

Commuting accidents

The Health staff unit comprises the following departments: Occupational Healthcare, Corporate HealthManagement, and Integration Management andRehabilitation. Our Chief Medical Officer heads the staff
unit; she reports directly to the Management Board.
Occupational Healthcare is responsible for traditional
corporate medical services and tasks stipulated byoccupational safety and health legislation and also offers
preventive medical services such as nutritional counselling, flu vaccination, or Health Days. In addition,
department representatives are involved in the advisorycommittee for the staff restaurant, the goal being tosupport healthy staff meals. Corporate Health Management offers a broad range of workplace health promotion services, including the “SWM aktiv” corporate sports
programme, and operates our in-house gym. In the areaof mental health, the focus is on individual and collective
psychosocial counselling and a support policy for the
Mobility business segment, in some instances in cooperation with external trauma therapists. Integration
Management and Rehabilitation supports the company
in the execution of operational integration management
pursuant to Section 167 of the German Social Code IX(Sozialgesetzbuch – SGB). To ensure our continued ability
to provide interesting health services, our employees inthe Health staff unit are continuously given opportunities to attend professional development workshops
and qualification courses.

Corporate governance

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 63

Corporate governanceGood corporate governance is also reflected in responsible
behaviour. As we are a company providing important
infrastructure services and owned by the City of Munich– and thus ultimately by Munich’s citizens – corporate
governance is an important topic for us. This is embeddedin the mission statement of our organisation.

Mission Statement

1. We are committed to the citizens of Munich.
2. We work towards enhancing the quality of life in
Munich and the region.
3. We engage in sound and long-term relationships
with our customers.
4. We act in a responsible manner towards theenvironment and society.
5. Our business success is the basis of everything.
6. We demand and encourage performance andreliability.
7. Our actions are based on cooperation andpartnership.
SWM Group is made up of the core Group and its (direct
and indirect) shareholdings. In the year under review, thecore Group comprised Stadtwerke München GmbH as
parent company and the following subsidiaries:
SWM Services GmbH, SWM Kundenservice GmbH,SWM Versorgungs GmbH, SWM InfrastrukturGmbH & Co. KG, SWM Infrastruktur VerwaltungsGmbH, and Münchner Verkehrsgesellschaft mbH (MVG),
see also the chart “About this report” on page 74.
The parent company is the operational holding company
for the subsidiaries and responsible for uniform
management. Group regulations define the internal(legal and factual) governance framework for thecompany. In particular, this framework covers thefollowing important aspects: binding descriptions ofduties, clear regulation of responsibilities, transparent

delegation of tasks, a clear operational chain of command, effective control mechanisms and functional
delineation, compliance with the business judgement
rule as well as the requirements of corporate law, andapproval requirements for major decisions. The businessactivities of SWM as a municipal company are subject toa certain control by the local political parties andinstitutions such as citizens committees or the city
council. Mandatory provisions in SWM’s articles ofassociation or city council applications or requests lead tothe discussion of projects planned by SWM on the city
council. In addition, citizens can resort to referenda.
The articles of association are the foundation of thecompanies of the SWM core Group. With the exceptionof SWM Infrastruktur GmbH & Co. KG, all companies in
the core Group are organised as German limited liability
companies (Gesellschaft mit beschränkter Haftung– GmbH). The corporate bodies of a GmbH are always
the shareholder meeting (Gesellschafterversammlung)and the managing directors (Geschäftsführung). A
mandatory supervisory board has been established at
Stadtwerke München GmbH, SWM Services GmbH, and
MVG. SWM recognises co-determination of employees.
Trust-based and close cooperation with the employee
representatives, characterised by an open andconstructive dialogue and mutual respect, is a key
element of our corporate policy.
We attach importance to clear responsibilities, transparent delegation of tasks, an operational chain ofcommand, effective control mechanisms and functional
delineation, and compliance with the business judgement rule, which stipulates that all decisions must be
taken with due diligence. According to our Code of
Conduct, this above all means that decisions must be
prepared properly, taking account of all relevant
decision-making options and their implications. They
may not be determined by inappropriate influences
and special interests. Another principle that applies
is that key decisions require the approval of senior
management. It goes without saying that we adhere
to the legal requirements in all corporate governanceissues, especially those arising from corporate law.

6 4 SUS TA I N A B I L I T Y R E P OR T 2023
Corporate governance

S TA DT W E R K E M Ü N C H E N

At SWM, internal policies provide guideposts for action.
The major elements are our corporate policy, the regulations on decision-making authorities, our delegation
guidelines, the articles of association and by-laws, thebusiness distribution plan, the guideline for the organisation of management board resolutions, and ourpolicies for financial transactions and the managementof shareholdings.
In the core Group, the Group Governance & Compliancestaff unit – hereinafter also called “Compliance function”– addresses the topic of corporate governance from an
overarching perspective. The Management Board’s
corporate office supports them in this task. Various
management systems exist for risk, shareholdings,
compliance, and information security management. The
guideline on the Compliance Management System (CMS)at SWM Group defines the organisation and operationof the CMS. Our CMS has been aligned with the Principles of Proper Audit of Compliance Management
Systems promulgated by the Institute of Public Auditorsin Germany (IDW) and covers three levels of action:
prevent, identify, and react. Compliance and dataprotection audits are carried out approximately once or
twice per year. In addition, Group Internal Audit regularly
performs audits. In 2021, an independent accounting
firm audited the design, adequacy, implementation, andeffectiveness of our CMS for the risk areas of dataprotection, money laundering, and fraud in accordancewith the requirements of the IDW PS 980 standard. The
audit resulted in an unqualified positive assessment andis to be repeated in 2026.
While the topic of corporate governance has beenorganisationally centralised in the core Group, decentralised management has been implemented in most of
our shareholdings. Centralised policies also exist for
relevant units that serve the purpose of shareholding
support, management, and controlling by SWM.

Fairness and compliance at
Stadtwerke München
It goes without saying that we comply with all legal
regulations. The entire Group and especially the SWM
Management Board see this as their responsibility vis-à-vis
customers, employees, citizens, the City of Munich in its
capacity of our shareholder, and the expert authorities.

When it comes to responsibilities, we pursue a top-down
approach. The responsibility for compliance has been
assigned to the Management Board of Stadtwerke
München GmbH and/or the top executives of SWM
Group. According to the business distribution plan, theChief Executive Officer holds the departmental
responsibility for compliance.
On behalf of the CEO, the senior executives heading theGroup Governance & Compliance staff unit are responsible for the CMS. The Compliance Officer compiles
annual activity reports to inform the Management Boardof Stadtwerke München GmbH, the top executives of
SWM Group, and the supervisory board bodies of SWM.
The Compliance Officer also performs the function of
Human Rights Officer.
In our organisation, compliance covers the following
areas of activity: data protection law, anti-trust law,prohibition of insider trading and market manipulation,
prevention of money laundering and terrorist financing,
sanctions against individuals, the German Supply Chain
Due Diligence Act (Lieferkettensorgfaltspflichtengesetz;
LkSG), prevention of corruption and property offences,and prevention of collusive tendering. We do nottolerate corruption or other unfair competitive practices,we pursue a transparent approach to donations andsponsoring that complies with our internal policies, andwe are careful in our handling of personal data. In 2023,
no internal corruption incidents were reported at SWM.
The focus of our compliance activities is on preventive
measures aimed to ensure that violations do not occur inthe first place. For example, training workshops or ane-learning module, which was revised in 2021, areoffered to increase all employees’ awareness ofcompliance issues. Face-to-face workshops focus on
employees who may typically encounter complianceissues in the performance of their tasks (e.g. thosedealing with external contractors). Internal preventive
measures and remedial actions have also been established with respect to the LkSG. Our current compliancetraining sessions and the compliance e-learning module
are progressively being expanded to include humanrights and environment-related issues. Awareness-raisingmeasures such as the Compliance Newsletter anddedicated training sessions serve the purpose offamiliarising employees in relevant organisational units
with our human-rights strategy, the LkSG rules andSUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 65

Corporate governanceregulations, and the associated processes to allow themto subsequently put these concepts into practice. New
employees are informed about the compliance/dataprotection organisation and regulations as well as thegoals and content of compliance/data protection within
the framework of onboarding sessions. Furthermore,
SWM offers training to relevant units on occupationalsafety and various environmental issues such as waste
management or water protection.
We publish all relevant policies, rules of procedure, andapplication guides on our intranet, along with additional information on training options, newsletters, andguidelines. In addition to pertinent newsletter articles,
we issued practical application guides on the LkSG on
1 January 2023. Employees can use these documents toread up on the specific requirements resulting from the
new law and the way they are being implemented at
SWM.
Our Code of Conduct assigns responsibility to all
employees and makes it clear that we respect the law,
draw attention to violations of laws and rules, andassume responsibility for compliance with rules andregulations. In addition, we act in the interest and for the
benefit of SWM, adopt a cooperative and partnershiporiented approach, take decisions with due diligence,
and acknowledge our responsibility for the environmentand society. This includes our clear commitment to boththe energy transition and sustainability in the supply
chain. Moreover, the Code of Conduct regulates
confidentiality obligations, the handling of conflicts ofinterest, and dealing with customers, business partners,
and other third parties.
Employees are directed by the Code of Conduct to reportpotential suspicions of compliance violations they note.
Apart from speaking to their manager, the Group
Governance & Compliance staff unit is available to themas an internal whistle-blower contact. Alternatively, an
attorney who has been appointed as an external
ombudsperson can be contacted. Compliance violation
tips may also be submitted anonymously. In addition,
both whistle-blowers and individuals affected by suchinformation are protected and their rights are
safeguarded. Since 1 January 2023, our whistle-blower
system has also included the complaint procedure
stipulated under the LkSG. The individuals responsible,
the contact data of the internal whistle-blower contact
unit and the ombudsperson, as well as the rules ofprocedure including information on responsibilities andreporting procedures are available in German andEnglish on the websites of Stadtwerke München GmbH,SWM Infrastruktur GmbH & Co. KG, and Münchner
Verkehrsgesellschaft mbH (MVG). We pursue all
suspicions of which we gain knowledge consistently
and without any exceptions. If a conclusiveness checkand subsequent compliance analysis or complianceinvestigation find that internal rules and regulations
and/or statutory requirements have indeed been
violated, suitable actions will be recommended andare then implemented by the business units affected.
Where there is reasonable suspicion that a criminal
offence has been committed, we will additionally file
an official complaint with the police.
Because changes may occur in the legal environment,case law, and authorities‘ specific decisions as well as
SWM’s risk position and structure, we continuously
update our CMS. Our goals for 2024 include the further
development of the processes for the implementation of
the German Supply Chain Due Diligence Act (LkSG).
Furthermore, our plans for 2024 provide for the
procurement of a software solution that is to be usedadditionally within the framework of the whistle-blower
system in order to overcome potential language barrierson the part of potential whistle-blowers.
Our implementation of the LkSG is dependent on theexisting management systems, with the CMS playing a
key role. While the methodological responsibility isembedded centrally in the Compliance function andmost requirements have been integrated into theexisting CMS, implementation is the responsibility of theCompliance Officers in the respective business segments.
From 2023 onwards, the effectiveness of the preventive
measures, the remedial actions, and the complaint
procedure will be reviewed as part of the annualcompliance audits.
In accordance with the CMS directive, the Human Rights
Officer annually and as warranted reviews the effectiveness of the preventive measures, remedial actions,and complaint procedure and monitors the risk management. In 2023, this review and monitoring task was
carried out in the form of a compliance audit withexternal support. The goal was to comply with the legal
obligations regarding (continuous) risk managementmonitoring and the annual effectiveness review in amanner that is legally watertight and audit-proof. In
sum, it can be noted that most of the statutory due
diligence duties have already been implemented
correctly, but more specific risk capturing is still required.

66 SUS TA I N A B I L I T Y R E P OR T 2023
Corporate governance

S TA DT W E R K E M Ü N C H E N

Another key element is company-wide LkSG risk
management, which essentially comprises overarchingrisk controlling, central compliance management,
decentralised compliance management, and the LkSGspecific risk management of the Central Purchasing
department.
The risk analysis regarding human-rights and environment-related risks in SWM’s own area of business thatwas carried out in the year under review covered the core
Group and dominantly influenced shareholdings. This
analysis identified various risks, e.g. with respect topotential unequal treatment in employment, violationof the non-discrimination principle or damage toemployees‘ health due to insufficient safety standards inthe setup and maintenance of workplaces. To the extent towhich adequate risk mitigation arrangements have notyet been adopted and implemented, recommendations
for risk-reducing measures were issued.
The Management Board of Stadtwerke München GmbHand top executives of SWM Group drew up a policy
statement on the human-rights strategy of Stadtwerke
München GmbH, SWM Services GmbH, and Münchner
Verkehrsgesellschaft mbH (MVG) and published thisdocument on 1 January 2023. In this policy statement,
we describe the procedures by which we ensure end-toend respect of human rights in our own business area
and at our suppliers The policy statement will be
updated in 2024.

Sustainability in the supply chain
Alongside our customers, our suppliers are a second
important stakeholder group. We are aware of ourassociated responsibility for human rights and social andenvironmental sustainability in the supply chain and areincreasingly focusing on the topic of sustainability in our
cooperation with suppliers. This complies with numerous
stakeholder requests: a resolution in principle on theimplementation of the climate targets adopted by the
Department for Climate and Environmental Protection of
the City of Munich, our customers‘ demands, and therequirements arising from the CSRD and other EU rules
and regulations.
In 2023, we designed a supply chain sustainability
strategy. It is based on an extensive, two-stage
materiality analysis, the first step of which was aconventional survey to identify the key sustainability
issues for the supply chain. In this exercise, we identified

the three subject areas of “climate”, “circular economy”,
and “human rights & working conditions” as the key
sustainability issues for our supply chain. In a second
step, we organised workshops with each individual
purchasing and logistics team where we linked these
topics to procurement and logistics activities with a view
to deriving goals, trajectories, KPIs, and measures. In
2024, they will be further operationalised together with
the SWM sustainability strategy and aligned within theorganisation with the individual business units. In
addition, we identified strategic product groups that also
play a key role for sustainable supply chain managementin 2023. In 2024, a cascading supply chain analysis will be
performed for selected product groups, the goal being
to find out with whom our suppliers collaborate, where
their raw materials come from, and what recycling sharethey achieve for materials and products.
Independently from these strategic considerations, welaunched several pilot projects in 2023 to test specificcontract award criteria directly in tender procedures, ask
suppliers about their compliance with requirements
within the framework of market surveys, and embark on
a general dialogue on sustainability with our suppliers.
Cooperation with our suppliers is very important to us
because we are convinced that this is an essential
prerequisite for making our external value added moresustainable.

Business partner compliance
Not only are the members of our organisation expectedto adhere to all applicable laws, but the same holds true
for our suppliers and other external business partners.
Business partner compliance is an integral part of our
CMS and comprises our Business Partner Code of
Conduct and the business partner compliance review.
The Business Partner Code of Conduct, which went into
effect in 2020 and was updated with effect from
1 January 2023, spells out the most important principles
for legally correct, responsible, and ethical behaviour that
we require of business partners and see as an essential
basis of our cooperation as partners. The Business
Partner Code of Conduct contains principles on humanrights, child and forced labour, employee rights,
environmental protection, raw material procurement,anti-corruption, money laundering and terrorist
financing, export and import controls, sanctions,conduct in competition, and business ethics, as well as
data protection and handling of information. In theevent of violations of these principles by business
partners, we reserve the right to critically review the

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 67

Corporate governancebusiness relationship. Existing and new direct suppliers
are informed about our Business Partner Code of
Conduct. Depending on the identified human-rights
and environment-related risks according to the German
Supply Chain Due Diligence Act (LkSG), the contribution
to these risks, and SWM’s ability to influence the party
directly responsible for these risks in its role of purchaser,
our Business Partner Code of Conduct – or an equivalent
code of conduct prepared by the supplier – will beincorporated as a mandatory element in our contracts
and supplemented by LkSG-specific, more concrete
contractual obligations such as agreements on passing
on these codes. In this context, we demand that direct
suppliers comply with the human-rights and environment-related requirements in their own area of
business and also duly communicate them to theirrespective upstream suppliers.
The introduction of a high-level business partnercompliance review has established a risk-oriented,
software-based business partner assessment process at
both the Central Purchasing department and all otherrelevant business units (e.g. Trade, Sales). The assessments cover both new and already existing contractualand business relationships. In the business partnercompliance review, we also check all active suppliers forviolations of the sustainability aspects defined in our
Business Partner Code of Conduct. If we identify any
violations, we launch a clearly targeted examination anddefine remedial actions. Private end/residential customers are exempt from the business partner review. The
entire business partner review process and the assessment of findings are automatically stored in the due
diligence software in accordance with the applicabledata protection requirements. Details on tasks,
processes, and responsibilities are governed by ourBusiness Partner Compliance Policy and our Anti-Money
Laundering and Terrorist Financing Policy and theassociated rules of procedure.
The LkSG risk analysis of our business partners has been
integrated into our existing business partner compliancereview. This means that SWM’s business segments
perform risk analyses for direct business partners. They
satisfy the requirements of the policies for business
partner compliance and for money-laundering andterrorism-financing prevention. Prior to entering intobusiness relationships, we conduct a specific, risk-based
LkSG audit for potential business partners based on thedue diligence software used for the business partners
compliance review. Continuous automated monitoringof existing business partners ensures that SWM is also
informed about any new LkSG risks emerging during theongoing business relationship. The following risk factors
determine the assessment of a business partner’s overallrisk (low, medium, or high): country (registered office),industry, and order volume. Indices are used for theclassification in the “country” and “industry” categories.

6 8 SUS TA I N A B I L I T Y R E P OR T 2023
Corporate governance

S TA DT W E R K E M Ü N C H E N

SWM A S A PURCHA SER
In the 2023 financial year, we purchased goods
and services with a total value of slightly under
EUR 1.206 billion from 6,425 active suppliers.1) This
procurement volume can be broken down as follows:
construction and engineering services (26.12 %),vehicles and delivered goods (24.90 %), and IT andservices (42.70 %). One important aspect of sustainability
in the supply chain is our defined goal to foster the
local economy and small and medium-sized enterprises.
Local sourcing, which SWM defines as sourcing in thesouthern Bavarian region where postal codes start with
the number 8, accounts for a volume of EUR 496 million(41.09 %), distributed among 2,685 suppliers.
1)

Procurement volume by regions in 2023
in EUR million

EU 1,204 (99.8 %)Germany 1,130 (93.7 %)Total
volume1,206

Local 496 (41.1 %)Indirect purchasing, excluding energy providers

Procurement volume1)
in EUR million
1,400
1,200

7,700

1,237
1,114 6,070

1,206
5,662

6,425

6,600

1,000

5,500

800

4,400

600

3,300

400

2,200

200

1,100

0

1)

The procurement volume
shown refers to thepurchasing-related invoice
volume disbursed within
one year. It includes only
the contracts concluded byCentral Purchasing and no
trading transactions. Thismeans that this procurement
volume is only a subset of thecost of materials shown inthe balance sheet.

0

2021

Procurement volume

2022

2023

Number of suppliers

Further steps of the audit include the use andassessment of a risk-oriented media check (adverse
media) and compliance questionnaires, if required.
Depending on the individual case, we will instigate
further preventive measures or define remedial
protocols. If, for example, an (imminent) violation ofhuman-rights or environment-related obligations is
identified, we will urge the supplier to ensure that thebreach of duty is prevented, terminated, or at least
minimised in the near future. If a breach of duty cannot
be stopped in the foreseeable future, we will immediately draw up and implement what is known as a“remedial protocol” (including a timeline) for thetermination or minimisation of the breach of duty. This
staged approach ensures that we enter into a solutionfinding dialogue with the affected supplier in the eventof a (potential) breach of duty and are forced to terminate
the business relationship only in exceptional cases.
The LkSG risk analysis conducted in the Central
Purchasing department in the year under review
revealed that the majority of our direct suppliers are
exposed to low abstract country risks, which is dueto their regional character. In the first step, we usedthe due diligence software to classify a total of
10,405 suppliers (as of: 22 December 2023) into oneof three categories (high, medium, low) dependingon the respective country and industry risks based onrecognised indices such as the Global Slavery Index.
In this process, certain industry risks were correctedagain when the company in question had its registeredoffice in Germany. This exercise resulted in 43 high,SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 69

Corporate governance

2,962 medium, and 7,400 low risk cases. It should be
noted that country risks were low (0 % high, 1 %medium, and 99 % low country risk), while industry risks
do exist at some of our suppliers despite considerationof the fact that they have their registered office inGermany (10 % high, 18 % medium, 72 % low industryrisk). The top five risk industries among our suppliers are:} provision of information technology services;} wholesale (excluding motor vehicles);} manufacture of electrical equipment;} mechanical engineering;} retail (excluding motor vehicles).

In the second step, the specific risk analysis in particularrevealed the risk of harmful environmental impacts due
to illegal waste disposal and the disregard of occupational safety regulations at suppliers.
As a basic principle, the Central Purchasing department
is pursuing an avoidance strategy: the first response to
identified risks is to examine whether an alternative
procurement source exists. If this is not the case or if weare in tender proceedings, suitable risk mitigation
measures are initiated. The measures:} Internal analyses} Information and evidence collection via questionnaires} Agreement on contractual provisions such as acommitment to comply with the Business Partner Codeof Conduct of Stadtwerke München by means of aletter of intent. All our potential suppliers are madeaware of this code as a basic principle. If a supplierdoes not agree to compliance with our code, there is
the possibility to incorporate an equivalent code
prepared by the supplier into the contractual
arrangement by concluding a recognition agreement.
} Blocking of risky suppliers in SAP to prevent theplacement of orders until the review has been
completed and the supplier has been cleared by theCentral Purchasing department.

Competition
We also rely on preventive measures with respect toanti-trust legislation. Specific requirements in our Codeof Conduct, the compliance training workshops, andcontinuous legal counsel – e.g. for contract design – aim
at possibly avoiding violations even before they occur.
Even though we ourselves do not violate anti-trust
legislation, collusion by third parties may cause us harm.
In tight markets, in particular, the risk of collusion among
third parties exists in tendering. In the event of antitrust-induced damage, we examine whether we should
file damage claims. The requirements for the German
Competition Register have been implemented as
stipulated.

Political engagement
Our business is subject to strong regulatory influences.
EU legislation (or its transposition at the national level) is
relevant here, as are laws and measures adopted at thefederal, state, and local levels.
Like the previous year, 2023 was again dominated by
Russia’s war of aggression against Ukraine and its
repercussions on the energy-policy and economic
agenda. In response to the high energy costs, theEuropean Commission proposed a reform of the EU
electricity market design in March 2023, which was
adopted within one year. This reform includes astrengthening of long-term contracts to hedge against
short-term market fluctuations and a price crisis
mechanism that permits state intervention in the market
under special circumstances characterised by very highand volatile price developments. A further focus was on
the completion of the consultations and interinstitutional negotiations on the various files of the “Fit for 55”
package that is to realise the EU’s climate target for 2030,
i.e. a 55 % emission reduction compared to 1990. For
example, agreements were reached in the reform of theEuropean Emission Trading System including certificate
trading for the areas of buildings and transport, and on
amendments to the Renewable Energy and Energy
Efficiency Directive and the gas decarbonisation
package, the regulations of which directly affect SWM.

70 SUS TA I N A B I L I T Y R E P OR T 2023
Corporate governance

S TA DT W E R K E M Ü N C H E N

Another topic that is particularly relevant for us is theredesign of the electricity market that was to be definedin the Climate-Neutral Electricity Market System Platformto achieve the transformation of the existing energy
system into an electricity system based on renewableenergies. SWM participated in the Climate-Neutral
Electricity Market System Platform. For short-term
generation of sufficient output after the shutdown ofnuclear power plants and the exit from coal-fired
electricity generation, the German Federal Ministry for
Economic Affairs and Climate Action is working on a
power plant strategy that is to install 10 gigawatts of
output that can be used to cover base loads by 2030.
Further political events occurred in the year under review
that might have an impact on the business segments of
SWM:} At the national level, the German federal government

was initially still dealing with various corrections of
the energy price cap legislation and its implementationin 2023.
} In the decarbonisation of the heating supply,
the Buildings Energy Act (Gebäudeenergiegesetz;
GEG) and the Municipal Heat Planning Act(Wärmeplanungsgesetz; WPG) were on theagenda in 2023.
} With the national hydrogen strategy and the thirdamendment to the German Energy Industry Act(Energiewirtschaftsgesetz; EnWG), the German federal
government has set the stage for the hydrogen core
network that is to speed up the ramp-up of thehydrogen industry in Germany.
} The Solar Package I aims to accelerate photovoltaics
expansion in rural and urban areas. To achieve thetarget of 215 gigawatts of photovoltaics by 2030, theannual addition of new plants is to be tripled, from
7.5 gigawatts in 2022 to 22 gigawatts in 2026.
However, the Solar Package I has not yet been
finalised.
The decision of the German Federal Constitutional Court(Bundesverfassungsgericht; BVerfG) pronouncing the2021 supplementary budget to be void had substantial
repercussions on the financing of the energy, heating,and mobility transitions, with long-lasting consequences.
Since the court ruling prevented the shift of EUR 60 billionof undrawn loans for the handling of the Covid-19 crisisto the Climate and Transformation Fund and theGerman Federal Ministry for Economic Affairs andClimate Action subsequently also closed the Economic
Stabilisation Fund, there is now a substantial lack offunding for the energy, heating, and mobility transitions.

Given the crucial importance of legislation for ourbusiness, we engage in a supporting role in the political
discussions on planned legislation at the EU, the German
federal, and the German state levels. We publish publicstatements on particularly important issues or decisions.
SWM is registered in the respective transparency/lobby
registers under the following numbers:} Lobby Register Number (Bavaria): DEBYLT0164} Lobby Register Number (national): R000611} Transparency Register Number (Brussels):

17284292859-45
Our positions and approaches in this dialogue are solely
based on principles that are sound from an energysector and macroeconomic perspective. Proprietary
fundamental models for the energy sector provide an
objective data basis for our reasoning. Of course, we
adhere to all requirements of our Code of Conduct andall applicable compliance rules in the political sphere,
too. With our political engagement, we intend to
generate greater awareness of our interests andconcerns, especially with respect to the implementationof our renewable energies expansion campaign, theexpansion of geothermal energy, and the importance of
local public transport for the mobility transition. In
addition, our political engagement enables us tocommunicate developments in the Group and prepare
ourselves for the relevant changes early on.

Data protection and information security
Our business activities regularly involve personal data.
We handle these data responsibly and in compliancewith the EU General Data Protection Regulation. We
actively provide transparent and comprehensible
information to our customers on the processing of theirdata and their rights. Our Data Protection Notice isavailable to the public for inspection at https://www.
swm.de/datenschutz/swm-gmbh. If we wish toprocess personal data for any purpose not listed in thisData Protection Notice, we notify our customers thereon
separately in accordance with the statutory requirements. Internally, we address the issue in our Code of
Conduct. Similarly, data protection is the topic of ane-learning module for our employees that is usedthroughout the Group.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 71

Corporate governance

The topic of data protection is organisationallyintegrated in our Compliance function. In addition,
there are decentralised contacts in the form of dataprotection coordinators and data protection specialists,
who support the central Compliance function. Data
protection coordinators process and coordinate inquiries
by affected parties from the various business segments.
Data protection specialists update the processing
register, report any data protection incidents, and are
the first responders for the business units when it
comes to initial data protection reviews.
Our Data Protection unit prioritises the support ofinternal projects in which data protection plays a major
role. One example is the development of digital businessmodels such as M-Login. In addition, Data Protection
addresses the implementation of data protection
requirements in our organisation, e.g. the projects
implementing the EU General Data Protection Regulation, the project aimed at developing Group-wide datadeletion and blocking strategies, or the purchase of dataprotection management software. In this context, thelarge number of Group projects with data protection
relevance is a challenge. This also applies to documentation requirements under the EU General Data
Protection Regulation.
Various audits regularly verify whether data protection
regulations have been implemented properly in thecompany. The Information Security Officer carries out
security audits, while the Compliance function is
responsible for data protection audits. In addition, theManagement Board of Stadtwerke München GmbHtasks Group Internal Audit with data protection and IT
security audits in its annual internal audit plan. We
handled data protection violations recorded during 2023
as stipulated in the rules and regulations and reported
them to the competent data protection agency in allcases that were subject to reporting obligations.

72 SUS TA I N A B I L I T Y R E P OR T 2023
About this report

S TA DT W E R K E M Ü N C H E N

About this report
This is the fifth Sustainability Report published by
Stadtwerke München (SWM). It is built on theinternationally accepted reporting framework definedby the “Global Reporting Initiative Standards”, which
we used as a guideline for the materiality analysis we
conducted, the description of the management
approaches, and the underlying classification of
information into general or specific. In addition, we
adhered to general reporting principles: accuracy,balance, clarity, comparability, completeness,sustainability context, timeliness, and auditability.
This report has been prepared with reference to thecurrent GRI Standards of 2021.

The reporting period matches the financial year, which
ran from 1 January 2023 to 31 December 2023. The
editorial deadline for this report was 30 June 2024. The
report is updated annually. Based on the information
currently available, 2025 will be the first financial year forwhich reporting in compliance with CSRD rules will bemandatory.
As a basic principle, all information refers to SWM in its
entirety with all its business segments. Individual
chapters deviate from the above-mentioned reporting
period in the sections indicated. Any information andpresentations of strategies and approaches in theindividual chapters that refer to different units are
moreover indicated accordingly.

Impact inside/outside the organisation
Key topic

Relevance

Relevant GRI standard

Inside theOutside theorganisation

organisation

SocietySocial responsibilityx

GRI 201 – Economic Performance 2016
GRI 203 – Indirect Economic Impacts 2016
GRI 413 – Local Communities 2016

Provision of essential servicesx

GRI 203 – Indirect Economic Impacts 2016
GRI 301 – Materials 2016
GRI 302 – Energy 2016
GRI 303 – Water and Effluents 2018

Product responsibilityx

GRI 203 – Indirect Economic Impacts 2016
GRI 301 – Materials 2016
GRI 302 – Energy 2016
GRI 305 – Emissions 2016
GRI 416 – Customer Health and Safety 2016

Products and services

Environment
Energyxx

GRI 302 – Energy 2016

Emissionsxx

GRI 305 – Emissions 2016

Raw materials and supplies

x

Water

x

GRI 301 – Materials 2016x

GRI 303 – Water and Effluents 2018

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 73

About this report

Key topic

Relevance

Relevant GRI standard

Inside theOutside theorganisation

organisation

Employees
Working conditionsx

GRI 401 – Employment 2016
GRI 402 – Labour/Management Relations 2016
GRI 405 – Diversity and Equal Opportunity 2016
GRI 406 – Non-discrimination 2016
GRI 407 – Freedom of Association and Collective
Bargaining 2016
GRI 408 – Child Labor 2016
GRI 409 – Forced or Compulsory Labour 2016

Training and educationx

Occupational health and safetyxDiversity and equal opportunityxx

GRI 202 – Market Presence 2016
GRI 405 – Diversity and Equal Opportunity 2016

Value creationx

x

GRI 201 – Economic Performance 2016
GRI 204 – Procurement Practices 2016
GRI 308 – Supplier Environmental Assessment 2016
GRI 408 – Child Labour 2016
GRI 409 – Forced or Compulsory Labour 2016
GRI 414 – Supplier Social Assessment 2016

Compliancex

x

GRI 205 – Anti-corruption 2016

Data protectionx

x

GRI 418 – Customer Privacy 2016x

GRI 206 – Anti-competitive Behaviour 2016x

GRI 415 – Public Policy 2016x

GRI 404 – Training and Education 2016
GRI 403 – Occupational Health and Safety 2018

Corporate GovernanceCompetition
Political contributionsx

74 SUS TA I N A B I L I T Y R E P OR T 2023
About this report

S TA DT W E R K E M Ü N C H E N

Data collection and compilation
Unless otherwise indicated, the following principles
apply to all key performance indicators and data points
throughout the entire report. This Sustainability Reportcovers all companies that were part of the SWM core
Group in the year under review: Stadtwerke MünchenGmbH, Münchner Verkehrsgesellschaft mbH, SWM
Versorgungs GmbH, SWM Services GmbH, SWM
Kundenservice GmbH, SWM Infrastruktur GmbH & Co.
KG, and SWM Infrastruktur Verwaltungs GmbH.

SWM
KundenserviceGmbH

In addition, reference is made to shareholdings insections as is applicable. The collection period for thedata published is 1 January 2023 to 31 December 2023.
Accordingly, the basis of the previous year’s data is
shifted by one year each. The content is based on amateriality analysis that was performed within thecontext of initial report preparation in 2019 and has
been checked annually since then to determine whether
there is any need for adjustment. The material topics
identified are presented extensively in the report. Alldata has been collected carefully, but transmission errors
cannot be ruled out.

Münchner
Verkehrsgesellschaft
mbH (MVG)
SWM
InfrastrukturGmbH & Co. KG

SWM Services
GmbH

SWM
Versorgungs
GmbH

STADTWERKEMÜNCHEN GMBH

The persons covered by the term “employees” in thisreport do not include trainees, interns, seasonal
workers, and staff members whose contracts aredormant. Information on the workforce is provided
on a per-capita basis.

Editorial note
Apart from carbon dioxide (CO2), the list of climatedamaging greenhouse gases that must be included in agreenhouse gas inventory as carbon dioxide equivalents(CO2e) under the internationally recognised standard of
the Greenhouse Gas Protocol also includes gases such as
methane (CH₄) and sulphur hexafluoride (SF₆). In thisreport, we also consider CO2 equivalents in most cases.

SWM
Infrastruktur
VerwaltungsGmbH

In general terms such as “CO2 neutral”, “CO2 compensation”, or “CO2 offsetting”, we use the abbreviation CO2
for the sake of simplicity, even though we mean CO2e.
Rounding of amounts or percentages to the nearest
whole number may lead to differences from the actual
figures. Forward-looking statements made in this reportare based on internal assessments of future
developments, which are subject to uncertainties andmay not be under the control of Stadtwerke München.
This report is published in German and English. In theevent of deviations, the German version prevails.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 75

GRI content index

GRI content index
Statement of use
Stadtwerke München GmbH has reported the information cited in this GRI content index for the period
1 January 2023 to 31 December 2023 with reference to the GRI Standards.

GRI Standard used
GRI 1: Foundation 2021
GRI Standard

Disclosure

Page number(s)Comments/omissions

Stadtwerke München GmbH
Emmy-Noether-Strasse 280992 Munich
Germany

General Disclosures
GRI 2: General Disclosures 2021
Organisational Profile and Reporting PracticeGRI 2-1

Organisational details

p. 6

GRI 2-2

Entities included in the organisation’s sustainability
reportingp. 74

GRI 2-3

Reporting period, frequency, and contact point

pp. 72, 75

The reporting period is January 2023 to
December 2023. Reports are preparedannually.
Contact point for questions regarding thereport: Natascha Lung, Marketing andCommunication

GRI 2-4

Restatements of information

New definitions, calculation methods,
or scopes considered are, if necessary,
described in footnotes to the respective
indicators or in the text of this report.

GRI 2-5External assurance

No external review has been performed.

Activities and Employees
GRI 2-6

Activities, value chain, and otherbusiness relationships

p. 4 et seqq.,
pp. 17–31

GRI 2-7

Employees

pp. 49–61

GRI 2-8

Workers who are not employees

p. 50 et seqq.,
pp. 56, 66 et
seqq.

GRI 2-9

Governance structure and composition

p. 9

GRI 2-11

Chair of the highest governance body

GRI 2-12

Role of the highest governance body in overseeing the management of impacts

pp. 63–64

See Annual Report, pp. 4–19, p. 25 et seq.,
pp. 30–34

Governance
See Annual Report, pp. 70–71
See Annual Report, p. 70

GRI 2-13

Delegation of responsibility for managing impacts

pp. 63–64

GRI 2-14

Role of the highest governance body in sustainability reportingp. 9

GRI 2-19

Remuneration policies

See Annual Report, p. 63

76 SUS TA I N A B I L I T Y R E P OR T 2023
GRI content index

GRI Standard

S TA DT W E R K E M Ü N C H E NDisclosure

Page number(s)Comments/omissions

Strategy, Policies, and Practices
GRI 2-22

Statement on sustainable development strategy

pp. 2–3

GRI 2-24

Embedding policy commitments

pp. 17 et seq.,
69–71

GRI 2-25

Processes to remediate negative impacts

pp. 58, 63–70

GRI 2-26

Mechanisms for seeking advice and raisingconcerns

pp. 58, 63–71

GRI 2-27

Compliance with laws and regulations

We are not aware of any incidences of
non-compliance with environmental laws
and/or regulations. Similarly, we are notaware of any incidences of non-complianceof laws and regulations in the social or
economic realm.

GRI 2-28

Membership associations

Selection:– 8KU cooperation of eight energy companies– Energy Efficiency Association for Heating,Cooling, and CHP (AGFW)– German Association of the Energy andWater Industries (BDEW)– German Geothermal Association (BVG)– German Fibre-optic Association (BUGLAS)– German Association of the Information
and Telecommunication, and New Media
Industries (BITKOM)– German Association of Offshore Wind
Energy Operators (BWO)– German Chamber of Industry andCommerce– German Association of the Gas and Water
Industries (DVGW)– EU DSO Entity– Euroheat&Power– The International Association of Public
Transport (UITP)– Association of German TransportCompanies (VDV)– German Association of Local Public
Utilities (VKU)– Economic Advisory Council of the Union(WBU)– Business Association of the German
Social Democratic Party– Business Association of the German
Green Party

Stakeholder Engagement
GRI 2-29

Approach to stakeholder engagement

pp. 10–13

GRI 2-30

Collective bargaining agreements

p. 56

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 77

GRI content index

GRI Standard

Disclosure

Page number(s)Comments/omissions

GRI 3: Material Topics 2023
GRI 3-1

Process to determine material topics

pp. 10–13

GRI 3-2

List of material topics

Employees
Working conditions
Training and education
Occupational health and safety
Diversity and equal opportunities

SocietySocial responsibility
Products and services
Provision of essential services
Product responsibility
Environment
EnergyEmissions
Raw materials and supplies
Water

Corporate GovernanceValue creation
Compliance
Data protection
Competition
Political engagement

Economic Performance
GRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 201: Economic
Performance 2016

GRI 201-1 Direct economic value generated
and distributed
GRI 201-2 Financial implications and other risks andopportunities due to climate change

pp. 17–31

See Annual Report, pp. 53–55, p. 59
See Annual Report, pp. 53–55, p. 59

p. 28 et seq.

GRI 201-3 Defined benefit plan obligations andother retirement plans

See Annual Report, pp. 53–55, p. 59

Market Presence
GRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 202: Market
Presence 2016

GRI 202-1 Ratios of standard entry level wage by
gender compared to local minimum wage

pp. 54–59
We pay our employees in accordance withvarious collective bargaining agreements –and they receive at least the statutory
minimum wage.

Indirect Economic Impacts
GRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 203: Indirect Eco- 203-1 Infrastructure investments and services
nomic Impacts 2016 supported

pp. 14, 17 etseq.
pp. 4–6, 14,
17–31, 36–44

Procurement Practices
GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 66–71

GRI 204: Procurement Practices 2016

204-1 Proportion of spending on local suppliers

pp. 67 et seq.

78 SUS TA I N A B I L I T Y R E P OR T 2023
GRI content index

GRI Standard

S TA DT W E R K E M Ü N C H E NDisclosure

Page number(s)GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 63–66

GRI 205: Anticorruption 2016

205-1 Operations assessed for risks related tocorruption

pp. 64–66

205-2 Communication and training aboutanti-corruption policies and procedures

pp. 64–66

205-3 Confirmed incidents of corruption andactions taken

pp. 64–66

Comments/omissions

Anti-corruption

No incidents of corruption were reported at
SWM in 2023.

Anti-competitive Behavior
GRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 206: Anti-competitive Behavior
2016

206-1 Legal actions for anti-competitive behavior,anti-trust, and monopoly practices

pp. 64–69
SWM was not involved as a party in any
legal actions for anti-competitive behaviour,
anti-trust, and monopoly practices.

Materials
GRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 301: Materials
2016

301-1 Materials used by weight or volume

pp. 21 and 68
For information on this matter, please see
the Consolidated Environmental Statementof the Technology division of Stadtwerke
München.

EnergyGRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 302: Energy 2016 301-1 Materials used by weight or volume

pp. 14, 33 et
seq.
p. 35

301-2 Recycled input materials used

p. 20

GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 9, p. 14 etseq. pp. 17,
22, 33

GRI 303: Water andEffluents 2018

303-1 Interactions with water as a shared resourcep. 4 et seq.
14–15, 17, 22,
26–27, 33, 39
et seqq. and44 et seqq.

Water and Effluents

303-2 Management of water discharge-related
impacts

Sewage management is not handled by
SWM, but by Münchner Stadtentwässerung,another public-sector company owned by
the City of Munich.

303-3 Water withdrawal

pp. 5, 42, 45

303-4 Water discharge

p. 22

303-5 Water consumption

p. 45

3-3 Management of material topics

pp. 9, 33 etseq.

Emissions
GRI 3: Material
Topics 2021

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 79

GRI content index

GRI Standard

Disclosure

Page number(s)GRI 305: Emissions
2016

305-1 Direct (Scope 1) GHG emissions

p. 37

305-2 Energy indirect (Scope 2) GHG emissions

p. 37

305-3 Other indirect (Scope 3) GHG emissions

p. 37

305-5 Reduction of GHG emissions

p. 35 et seqq.

Comments/omissions

Supplier Environmental Assessment
GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 64–70

GRI 308: Supplier
Environmental
Assessment 2016308-1 New suppliers that were screened using
environmental criteria

p. 67 et seq.

308-2 Negative environmental impacts in the
supply chain and actions taken

p. 66

3-3 Management of material topics

pp. 14, 49–61

Employment
GRI 3: Material
Topics 2021

GRI 401: Employment 401-1 New employee hires and employee turn2016
over

p. 55

401-2 Benefits provided to full-time employeesthat are not provided to temporary or part-time
employees

pp. 56–57

401-3 Parental leave

p. 56

Company benefits are provided to all
employees of SWM – including temporary
employees to the extent to which Articles 12
and 8 of the German Temporary Employment
Act (Arbeitnehmerüberlassungsgesetz, AÜG)are applicable and implemented by thelabour leasing company.

Labour/Management Relations
GRI 3: Material
Topics 2021

3-3 Management of material topics

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

pp. 49 et seq.,
54 et seq.
We inform our employees as timely as
possible regarding organisational changes.

Occupational Health and Safety
GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 60–61

GRI 403:
Occupational Healthand Safety 2018403-1 Occupational health andsafety management systemp. 60

403-2 Hazard identification, risk assessment,
and incident investigation

pp. 60–61

403-3 Occupational health services

pp. 60–61

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

pp. 60–61

403-5 Worker training on occupational healthand safety

pp. 60–61

403-6 Promotion of worker healthp. 60403-8 Workers covered by an occupational healthand safety management system

pp. 60–61

403-9 Work-related injuries

pp. 60–61

8 0 SUS TA I N A B I L I T Y R E P OR T 2023
GRI content index

GRI Standard

S TA DT W E R K E M Ü N C H E NDisclosure

Page number(s)Comments/omissions

Training and Education
GRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 404: Training and 404-1 Average hours of training per year per
employee
Education 2016404-2 Programs for upgrading employee skills
and transition assistance programsp. 49 et seqq.
p. 53
p. 49 et seqq.

Diversity and Equal Opportunity
GRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 405: Diversity and 405-1 Diversity of governance bodies andEqual Opportunity
employees
2016405-2 Ratio of basic salary and remuneration of
women to men

p. 57 et seqq.
pp. 51, 58
We pay our employees in accordance withvarious collective bargaining agreements –and they receive at least the statutory
minimum wage. No distinction between
men and women is made in this respect.

Non-discrimination
GRI 3: Material
Topics 2021

3-3 Management of material topics

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

p. 57 et seqq.
Equal opportunity officers responsible for thisissue have been appointed in all divisions.
Isolated discrimination incidents werereported in the year under review. They werereviewed, and the necessary measures were
implemented.

Freedom of Association and Collective Bargaining
GRI 3: Material
Topics 2021

3-3 Management of material topics

p. 54 et seqq.

GRI 407: Freedom407-1 Operations and suppliers in which the rightof Association andto freedom of association and collective bargainCollective Bargaining ing may be at risk
2016

We are not aware of any operations andsuppliers in which the right to freedom of
association and collective bargaining may
be at risk.

Child Labour
GRI 3: Material
Topics 2021

3-3 Management of material topics

p. 66 et seq.

Business Partner Code of Conduct
https://www.swm.de/dam/doc/english/
business-partne-code-of-conduct.pdf
Code of Conduct
https://www.swm.de/dam/doc/english/
code-of-conduct.pdf

GRI 408: Child
Labour 2016408-1 Operations and suppliers at significant risk
for incidents of child labour

We are not aware of any operations or
suppliers that are at a significant risk forincidents of child labour.

SUS TA I N A B I L I T Y R E P OR T 2023

S TA DT W E R K E M Ü N C H E N 81

GRI content index

GRI Standard

Disclosure

Page number(s)Comments/omissions

p. 66 et seq.

Business Partner Code of Conduct
https://www.swm.de/dam/doc/english/
business-partne-code-of-conduct.pdf

Forced or Compulsory Labour
GRI 3: Material
Topics 2021

3-3 Management of material topics

GRI 409: Forced orCompulsory Labour2016409-1 Operations and suppliers at significant risk
for incidents of forced or compulsory labour

We are not aware of any operations or suppliers that are at significant risk for incidents
of forced or compusory labour.

Local Communities
GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 14, 17 etseq., 20, 23,
25, 27 et seq.

GRI 413: Local
Communities 2016413-1 Operations with local community engagement, impact assessments, and development
programs

pp. 14, 17 etseq., 20, 23,
25, 27 et seq.

Supplier Social Assessment
GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 64–68

GRI 414: SupplierSocial Assessment
2016414-1 New suppliers that were screened usingsocial criteria

p. 66 et seq.

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

p. 66

GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 69 –70

GRI 415: Public Policy
2016

415-1 Political contributions

Business Partner Code of Conduct
https://www.swm.de/dam/doc/english/
business-partne-code-of-conduct.pdf

Public Policy

Political parties do not receive any
contributions from SWM.

Customer Health and Safety
GRI 3: Material
Topics 2021

3-3 Management of material topics

pp. 17, 22,
26, 52

GRI 416: Customer
Health and Safety2016416-1 Assessment of the health and safety
impacts of product and service categories

p. 22

GRI 3: Material
Topics 2021

3-3 Management of material topics

p. 66

GRI 418: Customer
Privacy 2016418-1 Substantiated complaints concerning
breaches of customer privacy and losses ofcustomer data

p. 66

Customer Privacy

We are not aware of any violations regarding health and safety impacts of products
and services.

82 SUS TA I N A B I L I T Y R E P OR T 2023
Contact and imprint

Contact and imprint
Publisher
Stadtwerke München GmbH
Emmy-Noether-Strasse 280992 Munich, Germany
Phone: +49 (0) 800 796 796 0
E-Mail: info@swm.de
www.swm.de/english

Editors:
SWM,
Kirchhoff Consult GmbH,
Hamburg, Germany

Consulting, design andimplementation:
Kirchhoff Consult GmbH,
Hamburg, Germany

S TA DT W E R K E M Ü N C H E N

Picture credits
Cover
Dmitry Rukhlenko/fotolia.com
Inside pages
U2
SWM/Andreas Lederp. 03
Stefanie Aumillerp. 04
Top picture: MarcelStrelow/istockphoto.com
Energy picture: Eloi_Omella/istockphoto.com
Water picture: Yarinca/istockphoto.com
Mobilty picture: SWM/Jan Saurer
Telecommunications picture: pikselstock/stock.adobe.com
Public pools picture: monkeybusinessimages/istockphoto.com
p. 06
markus/stock.adobe.com
p. 07
Bottom picture left: SWM/Steffen Leiprecht
Bottom picture right: Budimir Jevtic/stock.adobe.com
p. 08
no_limit_pictures/istockphoto.com
p. 10
Bernd Schmidt/stock.adobe.com
p. 12
NDABCREATIVITY/stock.adobe.com
p. 16
SWM/Jan Schmiedlp. 23
Top picture: MVG/Wolfgang Wellige
Bottom picture: SWM/Jan Saurer
p. 24
MVG/Robert Haas
p. 25
SWM/MVG
p. 27
Dobrila Vignjevic/istockphoto.com
p. 29
Top picture: napa74/stock.adobe.com
Bottom picture: Maryana Serdynska/istockphoto.com
p. 30
gorodenkoff/istockphoto.com
p. 32
SWM/Claudia Leifertp. 34
Top picture: Claudia Leifert
Bottom picture: gibavision/fotolia.com
p. 35
SWM/Marcus Schlaf
p. 36
SWM/Giglio Pasqua
p. 38
SWM/wpd europe
p. 40
SWM/Marcus Schlaf
p. 41
SWM/Manuel Ueblerp. 42
Top picture: SWM/Oliver Heissner
Bottom picture: SWM/Oliver Heissnerp. 43
Jan Schmiedelp. 44Paul Bradbury/gettyimages.dep. 45
pikselstock/stock.adobe.com
p. 46
Top picture: DEW2000/stock.adobe.com
Bottom picture: SWM/Andreas Leder
p. 48
SWM/Jan Saurer
p. 51
Stefan/stock.adobe.com
p. 52
contrastwerkstatt/stock.adobe.com
p. 53
fizkes/istockphoto.com
p. 54
SWM/Jan Saurer
p. 55
SWM/Jan Saurer
p. 56
Kerkez/istockphoto.com
p. 57
SWM/Oliver Heissner
p. 59
Peter Scholl/westend61.dep. 60
SWM/Manuel Ueblerp. 61
oyfotoliakid/stock.adobe.com
p. 62
SWM/Marcus Schlaf
p. 67
SWM/Jan Saurer
p. 71
Seventyfour/stock.adobe.com

Stadtwerke München GmbH
Emmy-Noether-Strasse 280992 Munich
Germany
Phone: + 49 (0) 800 796 796 0
E-Mail: info@swm.de
www.swm.de/english