Company Name: MAHLE Holding (China) Co., Ltd.
Award Category: ESG Performance
Company Size: Large Business Group
Environment
Climate Change:
MAHLE China follows the group strategy on climate change issues. Our target is to reach CO2 neutrality in scope 1&2 by 2040. The middle term targets include：
1. CO2 emission reduction in scope 1&2 by 49% by 2030 (base year 2019)
2. CO2 emission reduction in scope 3 (in supply chain and from product use) by 28% by 2030 (base year 2019)
Greenhouse gas emissions in Scope 1&2 at MAHLE China locations are monitored on a monthly basis via Quentic platform.
We aim to achieve the group’s CO2 emission targets through the four approaches:
1. Energy efficiency enhancement
2. In-house power generation
3.Purchase of green energy
4.Compensation
The knowledge and concept of carbon neutrality are inculcated among the employees, visitors and partners of MAHLE by means of propoganda campaigns, Arbor Day activities, and carbon neutrality-themed quizzes. These activities are also made known to the public via social media platforms such as WeChat. The newly developed " Carbon Neutrality awareness" training in 2023 will cover all MAHLE employees in China.
Natural Resources and Energy:
MAHLE China follows the group strategy on resource consumption reduction. The targets for MAHLE China are:
1.To reduce annual water consumption intensity by 2%
2. To increase annual energy efficiency by 2%
Measures include:
1. Set-up of energy monitoring system (completed at MAHLE Guangzhou; other sites in planning)
2. Installation of photovoltaic system to support production (completed at MFST-Tiajin, DMTS-Wuhan, MITT-Tianjin and MATS-Changshu in 2022 and 2023).
3. Purchase of green electricity. BU3-Chengdu sitepurchased 100% hydro power for production in 2022 and 2023.
4. Promotion of on-site energy saving activities, combined with PPI project to increase energy efficiency, e.g, replacement of the lighting system with LED in production and offices at all sites; at MAHLE Holding (China) Co. Ltd., the old A/C system was replaced with new Lithium Bromine system.
5. We’re also enhancing our employees’ awareness ofenergy conservation and emission reduction with reminder stickers near the switches. Energy savinginitiatives are being carried out; energy saving proposals and suggestions are being collected fromthe employees, etc.
Prevention of Pollution:
MAHLE China has set waste reduction targets as follows:
To reduce annual waste intensity by 2%
The target was achieved in 2021 and 2022. Wastewater monitoring systems and water balance reports are in place at all MAHLE China locations.
On-site reuse:
a) Reuse aluminum chips. MAHLE Nanjingreuses 100% of aluminum chips on-site.
b) Recycle cutting fluid. MAHLE Yingkou and MAHLE Macheng have installed new equipment to recycle the cutting fluid.
c) MAHLE Yingkou plant has installed equipment to recycle wastewater in plating process.
d) Change the disposal process, make waste brazing agent as resources for downstream vender at the BU3-Shanghai site.
Other Actions Taken for Environmental Protection:
In early 2022, the MAHLE group conducted a risk assessment of all locations including those in China to assess their dependence on water withdrawal from areas under water stress. The assessment was based on the World Resources Institute Aqueduct Water Risk Analysis. We defined water stress as the two highest categories in the tool (‘extremely high-water stress’ and ‘high water stress’). Based on the assessment, five locations (incl. one in China) are in the areas of extremely high-water stress. MAHLE sets site-specific targets for water management that are pursued within the environmental management systems of the location.
In 2022 we largely utilized groundwater, third party water and water from the public supply network. Additionally, we further extend the use of water in a circulating way to minimize waste, for example, as rinsing and cooling water. Total water withdrawal increased by 11% in 2022 with production expanded. We intend to intensify our water management activities to reduce water consumption in the long term.
Social
HR Development and Engagement:
People come first! The following three basic Safety at Work rules act as a simple guide for our employees:
1. Safety First
2. I Care—We Care
3.Walk the Talk
In 2022, 20 of 21 MAHLE China locations were certified in accordance with ISO 45001. Accidents inthe locations were recorded. After an increase of the accident rate in 2021 (0.57) we achieved to change back to the positive trend from 2016 with an accident rate of 0.51.
Our employees are our most valuable resource and are key to greater innovation and will ensure our future viability in a transforming mobility world. It remains critical to attract and retain talent and to further strengthen our position as an attractive employer in all regions. In 2022, MAHLE China won the Employer Excellence Award for the fourth consecutive year.
For employees' career development, MAHLE China has launched leadership program and development programs for high-potential employees. MAHLE promotes and encourages employees' internal career development via Internal Referral. MAHLE China will launch a talent development system by the end of 2023, so as to realize the digitalization and globalization of talent management.
Diversity, Equity and Inclusion:
Diversity, equal opportunity and nondiscrimination are firmly anchored in our corporate values as an internationally operating company. We promote diversity and inclusion of the different experiences and backgrounds of our employees and see this as an opportunity: Through Diversity & Inclusion (D&I), we can increase our innovative performance and support our business goals.
Various local policies are in place to confirm our commitment to a discrimination free workplace and to set rules and guidelines regarding the prevention of harassment.
To create a joint understanding of the importance of diversity, equal opportunity and non-discrimination to our business success, we demonstrate our clear commitment through continuous internal and external communication, and we celebrate our diverseworkforce with a range of activities each year, including International Women’s Day or Diversity Day.
Product Liability:
MAHLE China views technical innovation and intellectual property protection important and has applied for 78 patents in China. A healthy innovation and operating mechanism has been has been developed from technical innovation and reserve, patent layout and protection and product schemes without infringement.
All sites that manufacture vehicle components are certified to the IATF 16949 standard.
Each plant will appoint a product safety officer to fully take charge of our products safety issues.
We will conduct customer satisfaction survey regularly, define and implement the corrective action plan according to the results of the survey.
In order to protect our customers' rights and interests, we will sign a quality agreement or warrantyagreement with each customer. When receiving customer complaints, real-time response and the actions will be taken based on our procedure or work instruction. Closure rate and response time will be appraised.
Supply Chain:
Compliance and sustainable action as defined in our Supplier Code of Conduct are prerequisites for our suppliers in the MAHLE supplier panel.The MAHLE Integrity Platform allows suppliers and other parties to register violations of our code of conduct or laws.
MAHLE uses a software system that allows us to monitor suppliers ESG behaviors and risks that may arise in the supply chain and enable us to promptly respond with the appropriate countermeasures.
Sustainability rating plays an essential role in the definition of our supplier panel e.g., when approving new suppliers or during the contract awarding process.
To ensure that no logistics supply interruption occur which could endanger the continued existence of theMAHLE Group, MAHLE already established a overall risk management process. Within this process, supply risks and interruption could be identified, assessed, consolidated, and effective risk controlling activities also could be planned, implemented and monitored, including commercial risk, logistics risk, force majeure issue and so on.
Community Engagement:
The "Sprout Program" was launched by MAHLE China together with Fengxian Qingxi Middle School, which aims to help young people access careers in the automotive industry – with a focus on the new, CO2-friendly drive types.
As part of the program, the young people gain their first insights into the automotive industry through lectures, laboratory visits, and workshops with MAHLE engineers.
Additional, MAHLE China and Environmental Defense Fund (EDF) have established long-term partnerships to train outstanding graduates from Chinese universities to make study on the topics like energy conservation and emission reduction, photovoltaic power generation, air conditioning refrigeration, China's ESGpolicy research, the product carbon footprint, etc. in MAHLE.
Corporate Governance
Governance Organizational and Mechanism:
Our risk management system covers economic, environmental, and social aspects. The Risk Management Committee, in which members of the MAHLE Management Board and the Group Risk Manager are represented, is responsible for managing and monitoring the risk management system.MAHLE China has established certain data privacy policy, and conduct user awareness training of data privacy protection.
MAHLE China ensure that our conduct and actions adhere to laws and internal rules by means of the MAHLE Group compliance structure. It includes the MAHLE Business Code as a basic code of conduct for all employees.
To raise awareness, we implemented a web-based training. The training is compulsory for all employees.The content of the training includes general aspects of compliance as well as MAHLE’s specific compliance training. Moreover, it provides training on compliance in a wide variety of matters, including occupational health, safety and environmental protection, anti-corruption, antitrust, data protection and export control.
Innovation Sustainability:
Based on the market implications and our vision ‘We Share Future Mobility’ and our mission ‘Efficiency in Motion’, MAHLE is working on the climate-neutral mobility of tomorrow with the aim of further expanding its position as a leading systems supplier in three strategic areas that contribute to the Sustainable Development Goals (SDGs) 'Industry Innovation and Infrastructure' (SDG 9) and 'Responsible Production and Consumption' (SDG12).
According to corporate strategy MAHLE 2030+, MAHLE focuses on electric, thermal and efficient internal combustion engine solutions.
In the area of electrification, MAHLE focuses on innovations in the field of electric drive, components for fuel cells and batteries, as well as electric charging and associated solutions that enable e-mobility with maximum efficiency through cutting-edge technology.
Thermal Management—the vehicle’s heating and cooling. The aim here is to achieve energy efficiency and cabin comfort for sustainable mobility.
In the area of ICE, we can offer components for highly efficient engines that can also run-on e-fuels, hydrogen, or other sustainable fuels.
Extra Points
ESG / Sustainability / CSR reports, e.g.:
Sustainability report
ESG rating, e.g. EcoVadis, MSCI:
EcoVadis
ESG Verification or Certification:
ISO14001 certificate
Responsive to or engaged in ESG Initiatives / Standards / Goals:
SBTi
