Annual Report 2016

Sustainability at Daimler

Our view of sustainability

For us, sustainability means conducting business responsibly to ensure long-term success in harmony with the environment and society. We are moving toward our goals by making sustainability an integral part of our operations in the organization and by requiring and promoting a strong sense of responsibility for sustainable operations among all of our managers and employees throughout the Group. We include our business partners in this process and conduct a dialogue about these issues with our stakeholders. Our management structures, processes and systems are designed in accordance with this concept of sustainability. All of our behavior is based on legality and integrity. As one of the world’s foremost automakers, Daimler has a clear claim to leadership in the field of sustainability.

Our sustainability strategy

We have developed a Group-wide sustainability strategy to enable us to meet the requirements associated with sustainability, and we systematically pursue the sustainability goals we have set for ourselves. This strategy is embedded in our corporate strategy, which is based on our four core values: passion, discipline, respect and integrity. We can only ensure sustained profitability and society’s acceptance of our business activities if we take into account the impact all of our business processes have on the environment and society, and if we align our business targets with environmental and social requirements.

Our sustainability strategy has six core aspects (“dimensions of responsibility”), to which relevant areas have been assigned where action needs to be taken. We have linked them with targets and target indicators, against which we can be measured and which we use to document our progress. Our Target Program also defines the areas in which we plan to take action in the coming years. For example, we aim to further reduce pollutants and emissions, further enhance the safety of our vehicles, further advance our culture of integrity, and further expand and more systematically structure our efforts to protect human rights, in line with the “UN Guiding Principles on Human Rights.” We also seek to improve our dialogue with our suppliers and dealers and to further strengthen our social commitment.

Our business activities are also strongly guided by the ten principles of the UN Global Compact, to which we are firmly committed as a founding member. We are also a member of the Global Compact LEAD Group. Our internal principles and guidelines are based on this international reference framework as well as on other international principles.

  • We are committed to both legal and ethical standards and we must ensure that these standards are adhered to around the world — also by our business partners and suppliers.
  • As an automobile manufacturer, we work to promote sustainable mobility solutions and have demonstrated our innovative capability with regard to environmental protection, resource conservation and safety.
  • Our operations impact the environment, and this is especially the case in vehicle production. We therefore employ a consistent system of environmental management in order to minimize that impact.
  • As an employer, we have a responsibility to ensure fair and attractive working conditions for our more than 282,000 employees worldwide.
  • We seek to contribute to the common good beyond the level of our business operations, and we utilize our special expertise in order to achieve this goal.

Group-wide sustainability management

At Daimler, sustainability is thematically and organizationally embedded in our Group-wide corporate governance activities. (See Corporate Governance Report) The Corporate Sustainability Board (CSB) is the central management body for all sustainability-related issues. The operational work is conducted by the Corporate Sustainability Office, which is staffed by representatives of the specialist departments and divisions. Since 2011, we have been using the Sustainability Scorecard as a tool for steering our efforts to meet key sustainability targets. The scorecard uses a color-coded system either to display the success of quantitative indicators and qualitative objectives or to show that action needs to be taken. This allows targeted measures to be taken with the direct involvement of corporate management.

Comprehensive reporting on sustainability

The new sustainability report on financial year 2016 will be presented at Daimler’s Annual Shareholders’ Meeting at the end of March 2017. The report will be published exclusively in digital form, which means it will be available for viewing at any time on the Daimler corporate website. The report provides a detailed and comprehensive sustainability balance sheet for the previous financial year. All of the key facts and figures related to sustainability will also be published in a brochure. (See daimler.com/sustainability)

Our sustainability report was drawn up in line with the Global Reporting Initiative (GRI) guidelines “G4 — Comprehensive.” In this context, Daimler specifically highlights all of the company’s key sustainability-related issues. This applies in particular to current focal topics such as our efforts to further reduce vehicle emissions, our electric mobility roadmap and the extensive participation of our employees and the company as a whole in a large number of social and environmental projects. We also focus on those issues that our materiality analysis has determined to be of great importance to our stakeholders and ourselves. These include our activities to protect human rights, our data protection policies, our measures to further reduce the CO2 emissions of our vehicles and the development of innovative vehicle technologies such as those enabling autonomous driving.

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Sustainability and Integrity