csr and sustainability at daimler ag mike nolte ceo...

1

Mike Nolte, Mercedes-Benz Egypt

CSR and Sustainability at Daimler AG

Mike Nolte

CEO

Mercedes-Benz Egypt S.A.E.

2 CSR and Sustainability at Daimler AG, Mercedec-Benz Egypt, October 2, 2011

1. Increasing importance of sustainability

- Reasons for Daimler’s sustainability efforts

2. Variety of issues to address

- Example issues at Daimler

3. Implementation mechanisms

- Daimler’s sustainability governance-structure

4. Conclusion

Agenda


1. Increasing importance of sustainability


2008: BP Sustainability Report 2010: BP Disaster in the Gulf of Mexico

Increasing importance of sustainability Cautionary examples

Source: http://www.spiegel.de/wissenschaft/natur/0,1518,709817,00.html

http://www.spiegel.de/fotostrecke/fotostrecke-57739-9.html�


Increasing importance of sustainability Media exposure

Handelsblatt Nr. 115 vom 17.06.08 Seite 18Handelsblatt Nr. 115 vom 17.06.08 Seite 18

Handelsblatt Nr. 135 vom 15.07.08 Seite 19

CORPORATE SOCIAL RESPONSIBILITY - Das Thema Corporate Social Responsibility (CSR) ist ein Megathema.Immer mehr Unternehmen zeigen sich dem Gemeinwohl verpflichtet und handeln damit durchaus im Sinne der deutschen Bevölkerung. Dass sich anscheinend gute Geschäfte mit dem guten Gewissen machen lassen, belegt auch der Finanzmarkt. Denn nach einer Studie von A&B Financial Dynamics boomt das Geschäft mit ethischen, ökologischen und sozialen Aktieninvestments.

Absatzwirtschaft Nr. 05 vom 01.05.2008 Seite 037

"Ethik verändert die Wirtschaft"

Der Kulturwissenschaftler und Soziologe Nico Stehr, 65, über den moralischen MarktSPIEGEL: Herr Professor, Sie behaupten in Ihrem neuen Buch "Die Moralisierung der Märkte", dass sich das Verhalten von Käufern und Produzenten extrem ändere; Konsumenten zwängen Produzenten dazu, ihre Waren auch unter ethischen Gesichtspunkten herzustellen*. Sind vor allem die kulturellen Märkte von dieser Entwicklung betroffen?

Stehr: Nein, alle Märkte verändern sich radikal. Sicher ist es bei den Lebensmitteln, bei der Kleidung, bei der Unterkunft und auch beim Reisen am deutlichsten zu erkennen, aber auch die Finanzmärkte sind betroffen. Überall spielen moralische Kriterien auf einmal eine Rolle: Maximen wie Nachhaltigkeit, Fairness, Solidarität.

Der Spiegel, 11.06.2007, Nr. 24, Seite 149

Nachhaltigkeit steigert das GewinnpotenzialGanzheitlicher Ansatz verändert MärkteROLAND KÖLSCH | BRÜSSEL Damit Investoren bei der Geldanlage nicht nur eine gute Performance erzielen, sondern gleichzeitig zukunftsweisend agieren können, bieten Investmentgesellschaften ihren Kunden eine stetig wachsendes Auswahl von Nachhaltigkeitsfonds. Laut Studien des European Social Investment Forum (Eurosif) stieg die Größe des deutschen Marktes für nachhaltige Investments von 2,9 Mrd. Euro in 2002 um 45 Prozent auf 5,3 Mrd. Ende 2005 und aktuell auf 6,7 Mrd. Euro.

Handelsblatt Nr. 213 vom 05.11.07 Seite c04


Increasing importance of sustainability Numerous political and societal initiatives

• Politics & Society

• (Inter-)national initiatives to strenghten CSR

• Increasing standardization and regulation

• Professional non-governmental organisations


Increasing importance of sustainability Customers

• Increasing number of critical consumers

• Lifestyle of Health and Sustainability (LOHAS)

Sustainability has an impact on

buying decisions

Consumer boycotts

Greenwashing / bluewashing

criticism • Increasing transpearancy

• Increasing number of consumer protection

organizations


Increasing importance of sustainability Ratings and rankings


Increasing importance of sustainability Employee attraction


2. Variety of issues to address


Variety of issues to address Corporate Social Responsibility

Corporate Social Responsibility (CSR) is a concept whereby

companies

integrate social and environmental concerns

in their business operations and in their interaction with

stakeholders

(other terms: Corporate Citizenship, Corporate Responsibility)

(related term: Sustainability)

(connected concepts: Stakeholder Dialogue)

Social

Responsibility

Ecological

Responsibility

Economic Responsibility

Corporate

Social

Responsibility


Variety of issues to address Understanding CSR/Sustainability

Social Responsibility

Economic

Responsibility

Cor

pora

te S

ocial R

espo

nsib

ility

Environmental

Responsibility

Corporate Governance

Corporate Citizenship

Trip

le B

otto

m L

ine

Sustaina

bilit

y

Donations, Sponsoring, Foundations, Support for the arts, Education

projects, Humanitarian projects, etc.

Diversity, Work-Life-Balance, Healthcare,

Employee Responsibility, Lifelong Learning,

etc.

Environmental Management System, Waste

Management, Green IT, Travel Management,

etc.

Value added, Securing of liquidity,

Acquiring costumers and gaining shares in

the market etc.

Compliance with the German Corporate Governance Code, Value

Statement, Anti-Corruption, etc.

Source: E&Y, 10-2009


Variety of issues to address Material issues: examples (1)

Product responsibility

•Road to Emission-free Mobility

•Fuel consumption/ CO2-Emissionen

•Noise reduction, air pollution

prevention

•Vehicle and road safety

•…

Operations-related environmental

protection •Conservation of natural resources

•Biodiversity

•Waste-management

•Green-IT

•…

Employees

•Health management

•Diversity

•Demographic change

•Human resources development and

support

•…

http://www.daimler.com/Projects/c2c/channel/images/770070_1405485_800_530_360Grad_Umweltschutz_800x530.jpg�


Society

•Community Relations

•Stakeholdermanagement

•Transpearancy

•Donations, Sponsoring

•Corporate Volunteering

•…

Sustainability Management

•Incentive schemes

•Stakeholderdialogue

•Whistleblowing

•Integrity & Compliance

•Human rights

•…

Supply Chain & Business Partner

•Supply Chain

•Sales partners

•Joint Ventures

•After-Sales

•…

Variety of issues to address Material issues: examples (2)

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3. Implementation mechanisms


Implementation mechanisms Commitment from the Top

„Daimler has always been a company oriented toward the long term — and we intend to stay

that way. (…) In this way we are once more clearly emphasizing the fact that economic,

environmental, and social responsibility go hand in hand. Sustainability is the basic principle that

governs our business operations.”

Dr. Zetsche, Prof. Weber: FACTS on Sustainability 2011


Implementation mechanisms Element of Daimler’s Corporate Strategy


Implementation mechanisms Effective Management and Governance Structure

Chairman

Daimler AG - Board of Management

Communi

- cations

Human Resources

Sustainability Board

Global

Procurement

Public Policy &

External Affairs Communi-cations

Corp. Research

& Env. Protection

Integration of existing bodies: Topical integration of business units: Integration of relevant sectors:

- Business Practice Committee

- Corporate Environmental Protection

- Global Diversity Council

- Mercedes-Benz Cars

- Daimler Trucks

- Vans, Buses, Other

- Daimler Financial Services

- Development

- Global Services & Parts

- Sales & Marketing

- Production

- Global Diversity Office

Group Research &

MB Cars Dev.

(Chair)

Sustainability Office


Implementation mechanisms Daimler Commitment to UN Global Compact

• The UN Global Compact (GC) is a strategic policy initiative for

businesses that are committed to aligning their operations and

strategies with ten universally accepted principles

• Daimler: founding member since 2000

• Daimler: founding member (one of 54) of the LEAD Group

(01/2011)

• Commitment: Sustainability leadership by implementing the “GC

Blueprint”, a comprehensive action plan (incl. annual report on

progress)

Human Rights

1: Businesses should support/respect the protection of human rights; and

2: make sure they are not complicit in abuses.

Labor

3: Business should uphold the freedom of association and right to collective bargaining;

4: the elimination of forced/compulsory labor;

5: the effective abolition of child labor; and

6: the elimination of discrimination.

Environment

7: Businesses should support a precautionary approach to environmental challenges;

8: undertake initiatives to promote greater environmental responsibility; and

9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

10: Business should work against corruption in all its forms, including extortion and bribery.


Implementation mechanisms Sustainability Dialogue at Daimler

•Since 2008 successful anchor-event of our Stakeholder Dialogue

•Goal: Identification of relevant Sustainability topics and feedback on performance

•Participants 2010: approx. 80 external stakeholders (multinational institutions, political institutions, NGOs etc.) and 40 Daimler

executives

•5 Groups: Environment, Employees, Human Rights, Supply Chain and Community Relations

•Next Dialogue: November 3, 2011 at Mercedes-Benz Museum


Implementation mechanisms CSR/Sustainability Communication and Dialogue • Daimler’s central CSR/Sustainability publications: FACTS and MAGAZINE

• CSR/Sustainability Reporting is a central tool to implement effective measures in the field. Reporting along GRI

guidelines helps to trigger performance

• Reporting/dialog with financial institutions, ratings/rankings: GRI report is the basis for an – if wanted – expanded

provision of information

News

+ +

Dialogue Reports


Mercedes Benz Egypt also gives great attention towards their social responsibility. Starting with the HR

responsibility towards our employees, the foundation of Star Care Egypt to direct support of local

organizations.

Mercedes-Benz extended a main focus also towards education as we are the main Sponsor of the DEO

School, we also provide Pre- university internships for their students during summer at our local Mercedes-

Benz bus assembly plant MCV as well as training for mechanical engineers students at our passenger car

assembly plant EGA

Star Care Egypt is a non-profit organization founded in 2007 by Mercedes-Benz Egypt in partnership with

our dealer’s Network. Star Care is committed to helping children in need such as: Children with Social and

Health problems, Physically & mentally challenged children, Homeless children and orphans.

CSR at Mercedes-Benz Egypt


Star Care Egypt

School children training program is a joint-project between Star Care and the Egyptian Red Crescent (“ERC”) to

provide education on first aid, road safety, health and environmental issues to 10.000 children in 100 public

schools over a period of 3 years. The project started in 2010 and is currently in it’s second year of operation.

Home Care: in Cooperation with Children’s Cancer Hospital 57 3 57, we have provided two Mercedes-Benz A-

Class vehicles to provide children with Cancer medical treatment in their home, since 2009 over 4.000 children

were served

The Health & Hope Oasis: star care Egypt is one of the major contributors to the first recreational and

nutritional center for children with cancer in Egypt scheduled to be open by year end 2011

The Food for Education initiative is a cooperation with the UN WFP to support 2.000 school children and their

families in 80 community schools in Assuit with a nutritious daily school meal and a monthly take-home

allocation of food, subject to a school attendance of min. 80%


Highest standards of Health insurance :

We have currently 2 health insurance company for employees and their family members, which are optionally covered by either BUPA INTERNATIONAL for global medical care services or through UNICARE, dealing with the best hospitals in Egypt. Both programs are fully funded by MBEg.

Life Insurance :

All employees are covered by a life insurance through Allianz fully paid for by MBEg.

Education Tuition Fees :

After one year of employment with MBEg; employees are eligible for company financial support on tuition fees for personal education and development (i.e. MBA, CPA) and study leave up to 10 days non deductible from annual vacation balances.

Other benefits include: Real Estate Loan, pension plan

CSR responsibility towards our employees

Employee benefits include:


4. Conclusion

26 CSR and Sustainability at Daimler AG, Mercedec-Benz Egypt, October 2, 2011 26

• Economic success and CSR/Sustainability are linked to another. CSR with effects on reputation, customers,

employees, capital markets and politics

• CSR/Sustainability has been established consistently and effectively at Daimler – with strategic focus,

effective governance, addressing material issues

• CSR is an operative issue and therefore part of the Corporate strategy

Conclusion

CSR and Sustainability at Daimler are embedded in a strategic, long-term

approach. They contribute to the preservation of our traditional values and

economic success!


Thank you!


Daimler AG Stuttgart (Germany) www.daimler.com Mercedes-Benz Egypt

csr and sustainability at daimler ag mike nolte ceo...

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