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<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Editorial<br />

<strong>Dear</strong> <strong>readers</strong>,<br />

<strong>This</strong> <strong>report</strong> <strong>describes</strong> <strong>what</strong> <strong>Daimler</strong> <strong>means</strong> <strong>by</strong> “sustainability.” For us, it <strong>means</strong> a “360 - DEGREE” corporate<br />

responsibility that applies to local and global economics, society, and ecology and extends to all of our activities<br />

with a sharp focus on our operations. The following pages show how we are putting our commitment into<br />

practice.<br />

It has taken more than 100 years to put the first 800 million vehicles on the road worldwide, but it will take less<br />

than 30 years to at least double that number. The reason is that automobiles are now affordable to a rapidly<br />

increasing percentage of people who live in China, India or other emerging markets.<br />

That’s a very positive trend, as it offers more people social and economic development opportunities. However,<br />

this rapid motorization will only be environmentally acceptable if we continue to make passenger cars and<br />

commercial vehicles cleaner. We consider this to be a perfect challenge for <strong>Daimler</strong>:<br />

� We invented the automobile, the truck, and the bus.<br />

� Customers rely on us to provide solutions – and we are ready to accept a pioneering role when it comes to<br />

clean and safe mobility.<br />

� And, finally, we have the necessary innovative strength to succeed.<br />

In 2007, <strong>Daimler</strong> invested € 4.1 billion in research and development and €1.8 billion in environmental protection.<br />

Over the next few years we will further increase these budgets. In fact, <strong>by</strong> 2010 we will have invested nearly €14<br />

billion in research and development.<br />

These efforts are all the more important because no single technology is clearly superior to all others. There’s no<br />

obvious route to tomorrow’s mobility. Therefore we based our “road map for sustainable mobility” on three<br />

pillars:<br />

� the ongoing optimization of our vehicles with internal combustion engines;<br />

� the further improvement of efficiency through hybridization – in other words, the combination of a<br />

combustion engine with an electric motor; and<br />

� zero-emission driving with fuel cell and battery drive systems.<br />

What’s more, we’re also actively involved in the search for future energy sources.<br />

All of this illustrates our determination to be the driving force behind sustainable mobility. <strong>This</strong> is one of our most<br />

important goals.<br />

We also pay close attention to the overall consequences of our actions beyond the realm of environmental<br />

protection. Business interests and social responsibility have to go hand in hand – and the practical application of<br />

this principle begins with each and every one of us. That’s why, for example, we are helping our employees to<br />

balance the demands of career and family. By the end of 2008 we will have set up additional childcare facilities<br />

for 350 children under three years of age throughout Germany.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Editorial<br />

What’s more, in 2007 we once again trained more young people than we require in our own company. In fact,<br />

some 40 percent of all trainees in the German automotive industry are learning their profession at <strong>Daimler</strong>.<br />

But <strong>Daimler</strong>’s sense of responsibility doesn’t end at the plant gates. We also support numerous initiatives in the<br />

areas of education, training, science, and culture around the globe. In South Africa we’ve long supported the<br />

struggle to prevent the spread of HIV/AIDS. Through our worldwide “MobileKids” initiative, we are helping to<br />

improve road safety for children – yet another of our responsibilities as an automaker.<br />

Finally, we also help promote creative thinking and global understanding. For example, in conjunction with<br />

UNESCO, we stage international student competitions as part of our Mondialogo initiative. We support<br />

intercultural exchange programs for engineering students and traditionally sponsor the Donors’ Association for<br />

the Promotion of Sciences and Humanities in Germany. We’re also involved in a broad range of social and<br />

cultural activities.<br />

All of our activities are grounded in our corporate values of passion, respect, integrity, and discipline. They apply<br />

to all of our operations worldwide, at all times, and without reservations. We have explicitly committed ourselves<br />

to the Global Compact of the United Nations and its principles concerning human rights, employer-employee<br />

relations, environmental protection, and the struggle against corruption. We have implemented these principles<br />

in binding internal guidelines. <strong>Daimler</strong> simply does not, and will not, engage in business operations that do not<br />

comply with these principles. Through our Corporate Compliance department, which we have further expanded,<br />

we ensure that our employees apply these principles in their daily work.<br />

In the future we will coordinate our diverse sustainability activities even more closely. To this end, we have set up<br />

a coordination committee that <strong>report</strong>s directly to me. “360 DEGREES of responsibility” — that’s the standard we<br />

aim to live up to in all of our efforts.<br />

Sincerely,<br />

Dr. Dieter Zetsche<br />

Chairman of the Board of Management and<br />

Head of Mercedes-Benz Cars


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company<br />

The company. Our success is based on leading brands, superior products, and high-<br />

performing inspired people. With our global presence, a pioneering spirit, and<br />

competence in innovations and technology, we can look to the future with<br />

confidence.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / The company<br />

The company<br />

The name “<strong>Daimler</strong>” has been inseparable from the history of the automobile for more than 120 years. With the<br />

sale of the majority of shares in the Chrysler Group, <strong>Daimler</strong>, whose headquarters are in Stuttgart, is one of the<br />

world’s leading manufacturers of premium passenger vehicles and the world’s largest producer of commercial<br />

vehicles. Customized services for these products complement its product range.<br />

Today the annual revenues of Mercedes-Benz Cars and <strong>Daimler</strong> Trucks are twice as high as they were ten years<br />

ago. Mercedes-Benz Cars now produces seven additional model series and three new brands: Maybach, smart,<br />

and AMG. <strong>Daimler</strong> Trucks has incorporated the brands Mitsubishi Fuso, Detroit Diesel, Sterling, and Western<br />

Star. The portfolio of <strong>Daimler</strong> Financial Services has more than doubled over the past decade. In recent years,<br />

<strong>Daimler</strong> has broadened its international base and now operates in almost every country of the world. We have<br />

production plants in 19 countries and a worldwide network of approximately 7,300 sales locations. The<br />

worldwide networking of our research and development activities and of our production and sales locations gives<br />

us considerable potential to enhance efficiency and gain advantages in a competitive global environment.<br />

Approximately 272,000 men and women work at <strong>Daimler</strong> today.<br />

In 2007, <strong>Daimler</strong> posted annual revenues of € 99.4 billion. Of this total, 52 percent was contributed <strong>by</strong><br />

Mercedes-Benz Cars, 26 percent <strong>by</strong> <strong>Daimler</strong> Trucks, 8 percent <strong>by</strong> <strong>Daimler</strong> Financial Services, and 14 percent <strong>by</strong><br />

the Vans, Buses, Other segment.<br />

After selling the majority of its shares in the U.S. automaker Chrysler to Cerberus Capital Management in August<br />

2007, <strong>Daimler</strong> still holds 19.9 percent of the shares in Chrysler Holding LCC. At the end of 2007, <strong>Daimler</strong> also<br />

held a 24.9 percent interest in the European Aeronautic Defence and Space Company (EADS), one of the world’s<br />

leading companies in the field of aerospace and defense technology.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / The company<br />

The <strong>Daimler</strong> Group<br />

Brands: Mercedes-Benz, smart, Mercedes-AMG, Mercedes-Benz McLaren, Maybach, Freightliner, Sterling,<br />

Western Star, Mitsubishi Fuso, Thomas Built Buses, Orion, Setra, Detroit Diesel, Mercedes-Benz Bank, Mercedes-<br />

Benz Financial, <strong>Daimler</strong> Trucks Financial<br />

Legal form: Stock company (AG) incorporated under the laws of the Federal Republic of Germany<br />

Board of Management: Dieter Zetsche (Chairman of the Board of Management and Head of Mercedes-Benz<br />

Cars), Günther Fleig (Human Resources and Labor Relations Director), Rüdiger Grube (Corporate Development),<br />

Andreas Renschler (<strong>Daimler</strong> Trucks), Bodo Uebber (Finance & Controlling/<strong>Daimler</strong> Financial Services), Thomas<br />

Weber (Group Research and Development Mercedes-Benz Cars)<br />

Supervisory Board: Comprising of ten shareholders’ representatives and ten employees’ representatives. The<br />

Supervisory Board appoints the members of the Board of Management and approves important corporate<br />

decisions.<br />

Headquarters: Stuttgart, Germany<br />

Employees: 272,382 at the end of 2007<br />

Trainees: 9,300 at the end of 2007<br />

Market capitalization: About € 67.4 billion (as of December 31, 2007)<br />

Total assets: €135.1 billion<br />

Global stock: The <strong>Daimler</strong> share is listed on the stock exchanges in Frankfurt, New York, and Stuttgart.<br />

Shareholders: <strong>Daimler</strong> has a broad shareholder base of approximately 1.2 million shareholders. At the end of<br />

2007, the largest shareholder was the Kuwait Investment Authority with a 7.2 percent shareholding. In total,<br />

institutional investors held 75.9 percent of the Group’s equity and private investors held 16.9 percent. Around<br />

71 percent of the capital stock was in the hands of European investors and around 21 percent was held <strong>by</strong> U.S.<br />

investors.<br />

Automotive sales: <strong>Daimler</strong> sold 2.1 million vehicles in business year 2007 (2006: 2.1 million).<br />

Mercedes-Benz Cars: 1,293,184 (+ 3 percent)<br />

<strong>Daimler</strong> Trucks: 467,667 (- 9 percent)<br />

Mercedes-Benz Vans: 289,600 (+15 percent)<br />

Mercedes-Benz Buses: 38,200 (+ 3 percent)<br />

<strong>Daimler</strong> Financial Services: Management of a leasing and sales financing portfolio of € 59.1 billion (+ 4 percent)


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / The company<br />

<strong>Daimler</strong> Group – key figures<br />

Revenue 95,209 99,222 99,399 0 1<br />

Western Europe 44,620 46,999 49,289 + 5<br />

thereof Germany 20,726 21,652 22,582 + 4<br />

NAFTA 26,756 27,857 23,499 - 16<br />

thereof United States 23,930 24,943 20,270 - 19<br />

Other markets 23,833 24,366 26,611 + 9<br />

Employees (Dec. 31) 293,839 274,024 272,382 - 1<br />

Investment in property, plant, and equipment 3,445 3,005 2,927 - 3<br />

Research and development expenditure 3,928 3,733 4,148 +11<br />

thereof capitalized 591 715 990 + 38<br />

Cash provided <strong>by</strong> operating activities<br />

(including discounted operations) 11,032 14,337 13,088 - 9<br />

EBIT 2,873 4,992 8,710 + 74<br />

Value added<br />

(including discounted operations) 1,452 631 1,380 + 119<br />

Net profit 4,215 3,783 3,985 + 5<br />

Net profit from continuing operations 2,253 3,166 4,855 + 53<br />

Earnings per share (in €) 4.09 3.66 3.83 + 5<br />

Earnings per share, continuing operations (in €) 2.16 3.06 4.67 + 53<br />

Total dividend 1,527 1,542 2,028 + 32<br />

Dividend per share (in €) 1.50 1.50 2.00 + 33<br />

1 Adjusted for the effects of currency translation, increase in revenue of 3 %.<br />

2005 2006 2007 2007/2006<br />

Amounts in € millions Change in %


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Our product range<br />

Our product range<br />

The products supplied <strong>by</strong> Mercedes-Benz Cars range from the high-quality MicroCars of the smart brand to the<br />

premium vehicles of the Mercedes-Benz, Mercedes- AMG, and Mercedes-Benz McLaren brands, as well as the<br />

Maybach luxury sedans. Mercedes-Benz Cars has more than 17 production locations all over the world, with<br />

most of the division’s vehicles being produced in Germany. Approximately 97,000 men and women work in this<br />

division. The division’s most important sales markets in 2007 were Germany with 27 percent, the other markets<br />

of Western Europe (34 percent), the U.S. (19 percent), and Japan (4 percent).<br />

<strong>Daimler</strong> Group - business portfolio<br />

<strong>Daimler</strong> Trucks is the world’s leading truck manufacturer. In a global network consisting of more than 80,000<br />

employees, it develops and produces vehicles under the brands Mercedes-Benz, Freightliner, Sterling, Western<br />

Star, and Mitsubishi Fuso. Its product range covers light, medium, and heavy-duty trucks - for local and longdistance<br />

transport and construction sites - as well as the Unimog and Econic special vehicles. In addition to the<br />

buses of the Thomas Built Buses and Mitsubishi Fuso brands, the portfolio includes Detroit Diesel brand engines.<br />

The division’s production locations, numbering 35 in all, are located primarily in North America, Western Europe,<br />

Asia, and Latin America.<br />

Its most important sales markets in 2007 were Asia (31 percent), the NAFTA region (24 percent), Western<br />

Europe (19 percent), and Latin America (excluding Mexico) with 11 percent.<br />

The Mercedes-Benz Vans unit has production facilities at seven locations in Germany, Spain, the U.S., Argentina,<br />

and Vietnam for the model series Vito/Viano, Sprinter, and Vario. In the U.S., the Sprinter is sold under the<br />

Dodge and Freightliner brands. Its main sales markets are Western Europe (71 percent) and the NAFTA region<br />

(10 percent).<br />

<strong>Daimler</strong> Buses offers travel coaches, city buses, and rural service buses as well as chassis of the Mercedes-<br />

Benz, Setra, and Orion brands. They are produced at 12 production plants, located mainly in Germany, Turkey,<br />

Brazil, and North America. <strong>Daimler</strong> Buses generates 49 percent of its revenues in Western Europe, 14 percent in<br />

the NAFTA markets, and 20 percent in Latin America (not including Mexico).<br />

The <strong>Daimler</strong> Financial Services division supports the sales of <strong>Daimler</strong> Group vehicles with customized financing<br />

and leasing services for dealers and end customers. Its range of services also includes insurance, fleet<br />

management, investment products, and credit cards. Its main areas of operation are North America and Western<br />

Europe.<br />

<strong>Daimler</strong> Financial Services holds a 45 percent share in the Toll Collect consortium, which launched a system for<br />

electronic toll collection for trucks with a GVW of over 12 tons in Germany in January 2005.<br />

For more information on the <strong>Daimler</strong> Group and the individual divisions, go to here.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Our product range / Information on <strong>Daimler</strong>*<br />

Information on <strong>Daimler</strong>*<br />

The following links will allow you to call up individual tables with current company data and business and<br />

financial figures. Downloading the “<strong>Daimler</strong> Overview” brochure (PDF, 6.1 MB), provides you with a complete<br />

overview of the tables.<br />

Key financial figures <strong>Daimler</strong> Group<br />

Amounts in millions of EUR 2006 2007<br />

EBIT 4,992 8,710<br />

Value Added 631 1,380<br />

Net Profit 3,783 3,985<br />

Earnings per share (in EUR) 3.66 3.83<br />

Investment in property, plant and equipment 3,005 2,927<br />

Research and development expenditure 3,733 4,148<br />

Revenue <strong>Daimler</strong> Group<br />

Amounts in millions of EUR 2006 2007<br />

Total 99,222 99,399<br />

By regions<br />

Western Europe 46,999 49,289<br />

thereof Germany 21,652 22,582<br />

NAFTA 27,857 23,499<br />

thereof USA 24,943 20,270<br />

Other markets 24,366 26,611<br />

By divisions and operating segments<br />

Mercedes-Benz Cars 51,410 52,430<br />

<strong>Daimler</strong> Trucks 31,789 28,466<br />

<strong>Daimler</strong> Financial Services 8,106 8,711<br />

Vans, Buses, Other 13,151 14,123<br />

Employees <strong>Daimler</strong> Group<br />

(Dec. 31) 2006 2007<br />

Total 274,024 272,382<br />

By regions<br />

Germany 166,592 166,679<br />

USA 27,629 24,053<br />

Rest of World 79,803 81,650<br />

By divisions and operating segments<br />

Mercedes-Benz Cars 99,343 97,526<br />

<strong>Daimler</strong> Trucks 83,237 80,067<br />

<strong>Daimler</strong> Financial Services 6,813 6,743<br />

Vans, Buses, Other 37,679 39,968<br />

Sales Organization 46,952 48,078


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Our product range / Information on <strong>Daimler</strong>*<br />

Key financial figures Mercedes-Benz Cars<br />

Amounts in millions of EUR 2006 2007<br />

EBIT 1,783 4,753<br />

Revenue 51,410 52,430<br />

Value Added 915 3,892<br />

Investment in property, plant and equipment 1,698 1,910<br />

Research and development expenditure 2,274 2,733<br />

Employees Mercedes-Benz Cars<br />

(Dec. 31) 2006 2007<br />

Total 99,343 97,526<br />

By regions<br />

Germany 87,272 85,322<br />

USA 4,012 3,869<br />

Rest of World 8.059 8,335<br />

Unit Sales Structure Mercedes-Benz Cars<br />

(units) 1 2006 2007<br />

Mercedes-Benz 1,149,100 1,180,000<br />

A-Class/B-Class 292,500 275,400<br />

C-Class/CLK-Class/SLK-Class 328,600 386,500<br />

E-Class/CLS-Class 243,400 230,900<br />

S-Class/CL-Class/SL-Class/SLR/Maybach 108,000 107,000<br />

ML-Class/R-Class/GL-Class/G-Class 176,600 180,200<br />

smart 102,700 103,100<br />

Mercedes-Benz Cars 2 1,251,800 1,293,200<br />

Western Europe 784,800 779,200<br />

thereof Germany 353,300 342,900<br />

NAFTA 271,800 276,100<br />

thereof USA (retail sales) 248,100 253,400<br />

Asia/Pacific 124,700 139,400<br />

thereof Japan 48,500 46,300<br />

1 Group sales (including leased vehicles)<br />

2 Mitsubishi L200 Pickup and Mitsubishi Pajero vehicles manufactured in South Africa have been included under Mercedes-Benz Cars since Q1/2007; these<br />

vehicles had previously only been included at Group level.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Our product range / Information on <strong>Daimler</strong>*<br />

Employees Mercedes-Benz Cars <strong>by</strong> location<br />

(Dec. 31) From MBC On Site<br />

Sindelfingen 26,308 1<br />

Untertürkheim 17,132 3<br />

Production vehicles Mercedes-Benz Cars<br />

Production components Mercedes-Benz Cars<br />

36,390 2<br />

23,287 2<br />

Bremen 11,229 4 13,271<br />

Rastatt 5,957 6,170<br />

Berlin 2,992 3,115<br />

Hamburg 2,324 4 2,608<br />

Tuscaloosa 3,869 3,869<br />

East London 2,825 2,825<br />

Juiz de Fora 1,267 1,267<br />

Hambach 828 828<br />

1 incl. chassis parts production of Hamburg and Bremen plants as well as Untertürkheim plant Gastronomy Services and Corporate Security functions<br />

2 incl. Research & Development<br />

3 excl. Untertürkheim plant Gastronomy Services and Corporate Security functions<br />

4 excl. chassis parts production<br />

(units)<br />

Sindelfingen 436,211<br />

Bremen 225,011<br />

Rastatt 282,518<br />

Tuscaloosa 174,356<br />

East London 23,335<br />

Juiz de Fora 8,225<br />

Hambach 102,663<br />

(units)<br />

Untertürkheim<br />

Berlin<br />

Engines 1,019,746<br />

Rear axles 686,083<br />

Front axles 638,242<br />

Transmissions 1,348,185<br />

Engines 280,937<br />

Hamburg<br />

Rear axles 503,062<br />

Front axles 483,353


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Our product range / Information on <strong>Daimler</strong>*<br />

Major markets Mercedes-Benz Cars<br />

(units) 1 2006 2007<br />

1. Germany ( 1.) 324,000 309,900<br />

2. United States (retail sales) ( 2.) 248,100 253,400<br />

3. United Kingdom ( 3.) 83,700 79,800<br />

4. Italy ( 4.) 75,100 78,100<br />

5. France ( 5.) 60,500 59,900<br />

6. Spain ( 7.) 45,700 48,900<br />

7. Japan ( 6.) 47,000 46,200<br />

8. South Africa ( 8.) 24,300 27,600<br />

9. China ( 10.) 16,400 26,800<br />

10. Belgium ( 9.) 22,600 23,200<br />

11. Canada ( 12.) 14,500 15,700<br />

12. Russia ( 16.) 9,700 15,600<br />

1 Group sales (including leased vehicles)<br />

Key financial figures <strong>Daimler</strong> Trucks<br />

Amounts in millions of EUR 2006 2007<br />

EBIT 1,851 2,121<br />

Revenue 31,789 28,466<br />

Value Added 1,107 1,447<br />

Investments in property, plan and equipment 912 766<br />

Research and development expenditures 1,038 1,047<br />

Employees <strong>Daimler</strong> Trucks<br />

(Dec. 31) 2006 2007<br />

Total 83,237 80,067<br />

By regions<br />

Germany 27,617 28,975<br />

USA 20,339 16,667<br />

Rest of World 35,281 34,425<br />

Unit Sales Structure <strong>Daimler</strong> Trucks<br />

(units) 1 2006 2007<br />

Total 516,100 467,700<br />

Western Europe 85,600 87,700<br />

Germany 38,800 41,000<br />

United Kingdom 7,800 7,100<br />

France 11,100 11,400<br />

Italy 5,300 5,400<br />

NAFTA 187,800 114,000<br />

USA 163,700 94,600<br />

Latin America (excluding Mexico) 39,700 53,000<br />

Brazil 21,800 27,900<br />

Asia/Australia 151,800 153,200<br />

1 Group sales (including leased vehicles)


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Our product range / Information on <strong>Daimler</strong>*<br />

Employees <strong>Daimler</strong> Trucks <strong>by</strong> location<br />

(Dec. 31) From <strong>Daimler</strong> Trucks On Site<br />

Wörth 10,909 10,909<br />

São Bernardo do Campo (Brazil) 10,417 10,417<br />

Aksaray (Turkey) 1,595 1,595<br />

Mannheim 5,141 5,141<br />

Kassel 3,077 3,077<br />

Gaggenau 6,477 6,477<br />

Molsheim (France) 532 532<br />

Portland (USA) 2,852 2,852<br />

Cleveland (USA) 3,065 3,065<br />

Mount Holly (USA) 1,238 1,238<br />

St. Thomas (Canada) 1,485 1,485<br />

Santiago Tianguistenco (Mexico) 2,512 2,512<br />

Kawasaki (Japan) 4,589 4,589<br />

Toyama (Japan) 639 639<br />

Tramagal (Portugal) 380 380<br />

Oye/Nagoya (Japan) 200 200<br />

Bangkok (Thailand) 161 161<br />

Major markets <strong>Daimler</strong> Trucks<br />

(units) 1 2006 2007<br />

1. United States ( 1.) 163,700 94,600<br />

2. Japan ( 2.) 71,100 54,000<br />

3. Germany ( 3.) 38,800 41,000<br />

4. Indonesia ( 5.) 20,900 29,900<br />

5. Brazil ( 4.) 21,800 27,900<br />

6. Turkey ( 6.) 18,300 18,900<br />

7. U.A.E. Dubai ( 10.) 10,800 16,200<br />

8. France ( 9.) 11,100 11,400<br />

9. Canada ( 7.) 16,900 10,800<br />

10. Australia ( 12.) 7,500 10,000<br />

11. Mexico ( 14.) 7,200 8,600<br />

12. Saudi Arabia ( 15.) 6,000 8,000<br />

1 Group sales (including leased vehicles)<br />

Key financial figures <strong>Daimler</strong> Financial Services<br />

Amounts in millions of EUR 2006 2007<br />

EBIT 807 630<br />

Revenue 8,106 8,711<br />

New business 27,754 27,611<br />

Contract volume 57,030 59,143<br />

Value Added 218 33<br />

Investments in property, plant and equipment 17 29


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Our product range / Information on <strong>Daimler</strong>*<br />

Employees <strong>Daimler</strong> Financial Services<br />

(Dec. 31) 2006 2007<br />

Total 6,813 6,743<br />

By regions<br />

Germany 2,503 2,410<br />

USA 1,040 1,088<br />

Rest of World 3,270 3,245<br />

Key financial figures Vans, Buses, Other<br />

Amounts in millions of EUR 2006 2007<br />

EBIT 1,327 1,956<br />

Revenue 13,151 14,123<br />

thereof Vans 8,277 9,341<br />

thereof Buses 4,042 4,350<br />

Value Added 277 988<br />

Investments in property, plant and equipment 378 241<br />

Research and development expenditures 421 368<br />

Unit sales Vans 256,900 289,100<br />

Unit sales Buses 36,200 39,000<br />

Employees (Dec. 31) 37,679 39,968<br />

Employees <strong>Daimler</strong> Buses<br />

(Dec. 31) From Buses On Site<br />

Mannheim 3,369 3,369<br />

Ulm/Neu-Ulm 3,711 3,711<br />

Dortmund 181 181<br />

Istanbul-Ho¸sdere (Turkey) 3,263 3,263<br />

Ligny-en-Barrois (France) 415 415<br />

Oriskany (USA) 662 662<br />

São Bernardo do Campo (Brazil) 1,882 1,882<br />

Employees Mercedes-Benz Vans<br />

(Dec. 31) From Vans On Site<br />

Düsseldorf 7,485 7,544<br />

Ludwigsfelde 2,653 2,653<br />

Vitoria/Barcelona (Spain) 3,683 3,683<br />

González Catan (Argentinia) 2,361 2,361<br />

Charleston (USA) 154 154<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Values and strategy<br />

Values and strategy<br />

<strong>Daimler</strong> intends to continue offering its customers top performance in all segments in the future. We aim to be<br />

one of the world’s leading automotive manufacturers and a company that is valued <strong>by</strong> its customers, business<br />

partners, and employees. A major principle underlying our efforts is the vision of sustainability, which calls for a<br />

practicable balance between economic, ecological, and social considerations.<br />

In our automotive business we aim to achieve an average return on sales of 9 percent across all market and<br />

product cycles. In order to reach our goals, we have defined the <strong>Daimler</strong> target system as a strategic framework.<br />

<strong>This</strong> target system consists of six strategic dimensions (see graphic) and is based on the four core values of<br />

passion, respect, integrity, and discipline.<br />

Within the framework of the <strong>Daimler</strong> target system, we have defined four strategic areas of activity for the years<br />

ahead:<br />

� We will strive for excellence in our business operations. Our determination to deliver top performance will<br />

form an essential part of our corporate culture.<br />

� We aim to expand our core business activities and open up new markets in the major growth regions of the<br />

world.<br />

� We aim to extend the range of services we offer our customers and to work on refining innovative vehicle<br />

technologies.<br />

� Lastly, we aim to take advantage of new opportunities for growth in automobile-related areas.<br />

Commitment to excellence


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Values and strategy / <strong>Daimler</strong> target system and strategic areas of activity*<br />

<strong>Daimler</strong> target system and strategic areas<br />

of activity*<br />

Strategy<br />

We have reviewed the strategic focus of <strong>Daimler</strong> AG and adjusted it to the new situation. As a pacemaker for<br />

technological progress in the automobile industry, we focus on our traditional strengths: we want to inspire our<br />

customers with<br />

� first-class premium automobiles that set the benchmark,<br />

� commercial vehicles that are the best in their respective competitive environment, and<br />

� outstanding service solutions related to these products.<br />

Target system. The goal of the new <strong>Daimler</strong> AG is unchanged: We intend to achieve sustainable profitable growth<br />

in all of our divisions and thus to increase the value of the Group. <strong>Daimler</strong> has solid foundations in all of its<br />

businesses and has a leading market position in each relevant segment. We aim to be one of the world’s leading<br />

automotive manufacturers and a company that is valued <strong>by</strong> its customers, business partners and employees. We<br />

have set ourselves challenging targets also in financial terms: We aim to earn an average return on sales of 9% in<br />

the automobile business over the market and product cycles. In order to achieve these targets we have defined a<br />

strategic framework – the <strong>Daimler</strong> target system – which, as shown in the above diagram, consists of six<br />

strategic dimensions and is based on the four key values of passion, respect, integrity and discipline. We believe<br />

that these values are a prerequisite to deliver excellent performance - and we therefore act in accordance with<br />

them.<br />

For both the Group and the individual divisions, we have defined the actual situation and the target for each of<br />

these individual strategic dimensions.<br />

Commitment to excellence<br />

<strong>Daimler</strong> ScoreCard. The <strong>Daimler</strong> ScoreCard supports the implementation of our corporate strategy. It is the link<br />

between our target system and the operational management of the businesses <strong>by</strong> evaluating the progress made<br />

towards our strategic goals. The <strong>Daimler</strong> ScoreCard serves as an additional management instrument: it<br />

supplements the financial controlling instruments with the application of non-financial performance indicators.<br />

Four strategic focus areas for action. To achieve our strategic targets, within the framework of the <strong>Daimler</strong> target<br />

system we have laid down four strategic focus areas for the coming years:


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / The company / Values and strategy / <strong>Daimler</strong> target system and strategic areas of activity*<br />

� Operational excellence and a high performance culture. Our goal is to develop, produce and sell superior<br />

products using processes with above-average efficiency. We establish clear structures and lean processes<br />

and use the opportunities of standardization and modularization for further productivity increases in all<br />

businesses. For this purpose, in recent years we have started efficiency programs in all of our divisions, some<br />

of which have already been completed. Two examples are the CORE program at Mercedes-Benz Cars and the<br />

Global Excellence program at <strong>Daimler</strong> Trucks. Our success with process optimization has also been<br />

confirmed <strong>by</strong> external awards such as first place overall for our Untertürkheim plant in the 2007<br />

“Manufacturing Excellence Award”. Furthermore, as a result of the new management model we initiated in<br />

2006, structures and processes have been newly organized also in the supporting functions, facilitating the<br />

focus of our business on the core automotive functions. The implementation of the new management model<br />

is progressing according to plan. Improving efficiency will remain a key strategic focus in the future.<br />

In order to achieve these ambitious corporate goals and to promote the implementation of a high<br />

performance culture, we need highly motivated and high-performing employees who are aware of their<br />

contribution to the Group’s success and who act with a focus on success and customer satisfaction. We<br />

therefore initiated a wide-ranging Excellence Process throughout the Group in the autumn of 2007.<br />

Gradually, all levels of the hierarchy will be included. In this way, we intend to ensure that all of our<br />

employees throughout the Group focus their actions even more closely on our corporate goals.<br />

� Expansion of core business in traditional market segments and utilization of new opportunities on a regional<br />

basis. Superior products and customer services are crucial for us to continue growing in our traditional core<br />

segments. The market success of our vehicles shows that we are on the right track in terms of quality,<br />

customer satisfaction, customer perception and product appeal. Numerous prizes demonstrate the excellent<br />

market position of our vehicles: The S-Class and the SL-Class were both voted “Best Car of the Year 2007” in<br />

their respective categories <strong>by</strong> the German automobile magazine “Auto Motor Sport”. The emergency braking<br />

assistance (Active Brake Assist) of the Mercedes-Benz Actros was awarded ADAC’s “Yellow Angel” prize and<br />

the European Safety Prize. Mercedes-Benz and Setra buses unit received the “Best Bus 2007” award in their<br />

respective class. In the United States, J.D. Power awarded Mercedes-Benz Financial first place among the<br />

captive financial services providers. Our expertise in the area of environmentally friendly automobiles is<br />

underscored <strong>by</strong> awards such as the TÜV environmental certificate for the C-Class sedan and station wagon in<br />

Germany and the “World Green Car” award for the E 320 BLUETEC in the United States. We intend to utilize<br />

additional potential in the markets of the future with products whose character and marketing are tailored to<br />

the special requirements of each market. Our recent activities in China and India are topical examples of the<br />

enhancement of our local market position. For example, in China the foundation stone has been laid for a<br />

new van plant in Fuzhou. In India, we have started production of the Mercedes-Benz Actros heavyduty truck<br />

and have agreed on a joint venture for the production of trucks with the Hero Group. In addition, <strong>Daimler</strong><br />

Buses has agreed to cooperate with Sutlej Motors on the production of buses in India.<br />

� Further development of innovative and customer-oriented services and technologies. We are working<br />

intensively on the development of innovative, customer-oriented technologies along the entire automotive<br />

value chain. It makes sense to utilize innovations in different businesses throughout the Group. For example,<br />

we applied BLUETEC, the world’s cleanest diesel technology, first in commercial vehicles and later also in<br />

passenger cars, underscoring our leading role. In the future, we intend to make even more use of such<br />

opportunities for the Group-wide transfer of innovations.<br />

Our research and development work in the coming years will focus on developing environmentally friendly<br />

alternative drive systems. In addition to optimizing conventional drive systems, we are working on various<br />

alternative systems such as hybrid drive, fuel-cell drive, and so-called “DIESOTTO” engines, which are<br />

designed to combine the economy of diesel engines with the low emissions of modern gasoline engines. Not<br />

only are we the undisputed global market leader for hybrid buses, but with more than 100 vehicles, we have<br />

the world’s biggest fleet of fuel-cell vehicles in use. Our involvement as majority shareholder of the newly<br />

founded “Automotive Fuel Cell Cooperation” shows the importance we place on extending our expertise in<br />

this area. As early as the year 2010, we intend to start production of fuel-cell vehicles with a small series of<br />

the B-Class. Parallel to the technological development of our product range, we plan to expand the range of<br />

services we offer in connection with these products. In cooperation between <strong>Daimler</strong> Financial Services and<br />

the automotive divisions, new methods will therefore be prepared in order to utilize the promising business<br />

potential offered <strong>by</strong> the services sector.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability<br />

Managing sustainability. On the basis of our vision of sustainability, we have<br />

developed specialized management systems, which we have systematically<br />

embedded in our daily operations. These systems are helping us to achieve our<br />

sustainability targets.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Expanding sustainability management<br />

Expanding sustainability management<br />

By creating a Sustainability Board at the top management level, <strong>Daimler</strong> has further systematized and optimized<br />

its sustainability management. In line with a Board of Management resolution from April 2008, the Group<br />

combines all of the management processes relevant to sustainability in the Sustainability Board. <strong>This</strong> committee,<br />

which is directly responsible to the Chairman, coordinates significant sustainability measures throughout the<br />

Group and supports the operating units as they put solutions into practice.<br />

The Sustainability Board complements existing management structures and committees within the Group, such<br />

as the Corporate Environmental Protection unit, the Business Practices Committee in the Legal & Compliance<br />

unit, and the Global Diversity Office in the area of human resources. In addition, the Sustainability Board<br />

supports the strategic and operative control of sustainability-related activities at every level – from the Board of<br />

Management to the individual workstation. Sustainability management in the area of corporate environmental<br />

protection, in the area of compliance, and in the area of human resources.<br />

The Sustainability Board is managed <strong>by</strong> the Board of Management member responsible for corporate<br />

development/ strategy. The Sustainability Board’s proposals for more extensive activities are submitted to the<br />

Board of Management for approval.<br />

The <strong>Daimler</strong> Sustainability Board, which meets at least four times a year, consists of eight representatives of<br />

<strong>Daimler</strong>’s top management. The cross-divisional functions represented include:<br />

� Communications<br />

� Corporate Development/Strategy<br />

� Corporate Research & Environmental Protection<br />

� Global Procurement<br />

� Human Resources<br />

� Investor Relations<br />

� Legal & Compliance<br />

� Public Policy and External Affairs


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Expanding sustainability management<br />

Sustainability governance structure<br />

The <strong>Daimler</strong> Sustainability Board is supported <strong>by</strong> a cross-divisional team (Sustainability Office) at the operational<br />

level. Depending on the issue, high-ranking representatives from Mercedes-Benz Cars, <strong>Daimler</strong> Trucks,<br />

Mercedes-Benz Vans, <strong>Daimler</strong> Buses, and <strong>Daimler</strong> Financial Services are actively integrated into the sustainability<br />

management process.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management<br />

Responsible corporate management<br />

As a company listed on the stock exchanges, <strong>Daimler</strong> has an obligation to its shareholders and stakeholders.<br />

Responsible and continually evolving corporate management with smoothly functioning organs and efficient tools<br />

for guidance and control is needed in order to systematically exploit development potential and minimize<br />

business risks.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management / Corporate Governance<br />

Corporate Governance<br />

Because our corporate headquarters are in Germany, the formal structure of our corporate governance has<br />

primarily been defined <strong>by</strong> German law. We also need to comply with the additional requirements placed on us <strong>by</strong><br />

the fact that we are listed on the New York Stock Exchange. The competencies of our three corporate bodies –<br />

the Annual Meeting, the Board of Management, and the Supervisory Board – are regulated <strong>by</strong> legal provisions.<br />

The dual management system in accordance with German stock corporation law is approved through the strict<br />

separation between the executive (Board of Management) and monitoring (Supervisory Board) organs. (see the<br />

diagram below).<br />

Corporate governance at <strong>Daimler</strong>


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management / Our standards of business conduct<br />

Our standards of business conduct<br />

We have formulated our benchmarks for good corporate management in our standards of appropriate business<br />

conduct, which include laws as well as internal policies and guidelines. Ensuring compliance with these<br />

standards in all of our business processes is the task of corporate management. Three units in particular are<br />

involved in this area:<br />

� The Legal department communicates the basic legal principles with which the company, its employees and,<br />

in particular, senior managers must comply;<br />

� Corporate Compliance (CCO) develops and communicates guidelines and procedures for application in daily<br />

business operations;<br />

� Corporate Auditing conducts monitoring and audits within the organization in order to find out whether any of<br />

our business processes harbor unusual risks for the Group and whether they are in line with general legal<br />

requirements as well as our internal policies and guidelines.<br />

In 1999 we formulated the <strong>Daimler</strong> Integrity Code, a comprehensive set of guidelines for professional conduct<br />

that applies to all employees without exception. In 2003 we supplemented the Integrity Code with our Principles<br />

of Social Responsibility and our Code of Ethics.<br />

The basic principles underlying our guidelines for professional conduct are translated into regulations for<br />

employee behavior <strong>by</strong> specific Group policies and guidelines. These Corporate Policies & Guidelines, which were<br />

laid down in 2006, are an important aid to orientation regarding the Group’s complex business operations. In<br />

2007 our compliance organization supplemented the compliance program with a set of central corporate policies<br />

and corporate guidelines. For example, it worked closely with the Human Resources department to institute our<br />

“zero tolerance” corporate policy as well as a guideline regarding the uniform, fair, and transparent application of<br />

disciplinary measures.<br />

Our target for 2008 is to further improve the clarity and transparency of our standards of business conduct. In a<br />

policy cleanup process, we will examine all of our guidelines to ensure that they are up to date and optimize or<br />

discontinue any guidelines and policies which are no longer current. We have defined comprehensive criteria to<br />

this end. The optimized and standardized rules and regulations will in future be known as the “House of Policies.”


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management / Compliance<br />

Compliance<br />

We reject on principle any kind of business activity that is illegal or is in contravention with our values and<br />

fundamental principles. The task of Corporate Compliance at <strong>Daimler</strong> is to promote and demand appropriate<br />

business conduct in line with this principle among all employees.<br />

Corporate Compliance (CCO) was established in early 2006. It is headed <strong>by</strong> the Chief Compliance Officer,<br />

appointed in 2008, who is also head of the Legal department and <strong>report</strong>s directly to the Board of Management.<br />

CCO creates framework conditions and develops measures aimed at safeguarding <strong>Daimler</strong> and its employees<br />

from unethical decisions and preventing inappropriate conduct.<br />

At the beginning of 2006, the <strong>Daimler</strong> Board of Management appointed a Compliance Committee comprising<br />

high-ranking managers from various units. <strong>This</strong> committee defines and manages the implementation of our<br />

compliance program. It also reviews and initiates the systematic integration of compliance aspects into our<br />

business processes and authorizes all related corporate guidelines.<br />

Framework<br />

The Chief Compliance Officer regularly informs the Board of Management, the Compliance Committee, and the<br />

Audit Committee of the Supervisory Board about the current status of compliance activities within the Group. In<br />

addition, we have appointed an independent external consultant who monitors the efficiency and effectiveness of<br />

the compliance program and advises the Supervisory Board, the Audit Committee, and the Board of<br />

Management.<br />

We’ve made good progress in our efforts to create a culture of sustained compliance in our company. With the<br />

CCO, we have created a strong management organization. We have also initiated a transformation of our<br />

corporate culture that is in line with our corporate values and will establish compliance in all of our business<br />

units and business processes.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management / Compliance<br />

Promoting awareness<br />

We have instituted a variety of measures to ensure that the rules for compliance are clearly implemented in our<br />

day-to-day business operations. For example, compliance issues are continually communicated in our internal<br />

media and are on the agenda of manager training sessions, informational and qualification events, and special<br />

qualification programs. In the last two years, <strong>Daimler</strong> AG has conducted in-depth classroom courses for<br />

approximately 9,000 employees, approximately half of whom were managers. In addition, 3,000 employees<br />

completed a precisely defined e-learning program and 26,000 employees used an animated compliance<br />

communication tool. At its business locations all over the world, <strong>Daimler</strong> has appointed more than 50<br />

Compliance Managers who support the local business units. It has also introduced new processes such as<br />

mandatory consultation in the case of business dealings with government parties and due diligence (verifying the<br />

integrity of new business partners).<br />

The Compliance Consultation Desk (CCD) is available to answer all questions submitted <strong>by</strong> employees on a<br />

strictly confidential basis; employees can also ask their questions anonymously if they wish. The CCD has<br />

processed more than 12,000 inquiries so far. Our employees and external partners can also <strong>report</strong> suspected<br />

inappropriate conduct to the Business Practices Office (BPO). The Business Practices Committee (BPC),which<br />

comprises representatives of top management, investigates all <strong>report</strong>ed cases and takes appropriate measures.<br />

To ensure timely identification of risks and ensure an appropriate response, the CCO has introduced a<br />

compliance risk management system. Since the beginning of 2006, compliance reviews have been carried out in<br />

more than 30 sales companies or business units in over 25 countries. Moreover, in more than 50 companies or<br />

business units we have set up standardized control systems that are monitored <strong>by</strong> internal audit professionals.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management / Risk management system<br />

Risk management system<br />

Within the framework of global operations, <strong>Daimler</strong>’s divisions are exposed to a large number of risks that are<br />

inextricably linked with their business activities. For the early detection, evaluation, and consistent management<br />

of risks, we use effective management and control instruments that are combined into a uniform risk<br />

management system which meets the applicable legal requirements. The main risk categories are economic<br />

risks, sector-specific risks (including environmental and social risks), and financial market risks.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management / Risk management system /<br />

Structure of the risk management system*<br />

Structure of the risk management system*<br />

The risk management system is an integral part of the overall planning, control, and <strong>report</strong>ing process in all the<br />

relevant legal entities and central functions. It is based on a risk management handbook that <strong>describes</strong> in detail<br />

the methodological and procedural framework of risk management at <strong>Daimler</strong> AG.<br />

The aim of the process is to identify risks and evaluate them in terms of their probability and the amount of<br />

damage they could cause. Key risk categories that are monitored individually and in terms of their combined<br />

effect include the following:<br />

� economic risks (for example, risks due to overall economic development in the core markets or the<br />

development of raw material prices);<br />

� sector-specific and company-specific risks, including the images of all the <strong>Daimler</strong> brands, product quality,<br />

legal requirements and political circumstances, supplier risks, unforeseen events, and environmental risks —<br />

with regard to products (integration of environmental protection into the development process) as well as<br />

production;<br />

� risks connected with financial markets (including market risks due to fluctuating exchange rates, interest<br />

rates, and share prices)<br />

The responsible persons also have the task of developing, and initiating as required, measures to avoid, reduce,<br />

and hedge risks, and to monitor risks within the framework of a regular controlling process. The risk<br />

management system enables the Board of Management to identify key risks at an early stage and to initiate<br />

suitable countermeasures. The Corporate Auditing department supports the Board of Management in monitoring<br />

the various functions and business units of our company. The integrated early warning system for risks, as well<br />

as the structure and implementation of risk management, are reviewed not only <strong>by</strong> the Corporate Auditing<br />

department but also <strong>by</strong> the auditors of our Consolidated Financial Statement.<br />

By <strong>means</strong> of risk-oriented reviews, the Corporate Auditing department helps to make corporate processes<br />

efficient and effective and to improve management quality in a sustained manner. As part of its review activities,<br />

the Corporate Auditing department informs the Board of Management, the Audit Committee, and the auditors of<br />

our Consolidated Financial Statement about its conclusions, suggestions for improvement, and the extent to<br />

which the suggestions have been implemented.<br />

As part of a reorganization process, the Corporate Audit department centralized all auditing functions, which had<br />

previously been distributed among various locations, in 2006. <strong>This</strong> made it possible to standardize and uniformly<br />

apply auditing processes throughout all the business areas and functions and to strengthen the independence of<br />

the Corporate Auditing department within the Group. We continued this process in 2007 and intensified it <strong>by</strong><br />

creating a functionally oriented organization. By increasing the rotation of the employees in Corporate Auditing,<br />

we ensure, on the one hand, that the department has the requisite knowledge of all Group functions and<br />

business areas and, on the other, that the people going back into the business units promote risk awareness<br />

there.<br />

Further information is available in our Annual Report 2007.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management / Risk management system /<br />

Compliance with competition law*<br />

Compliance with competition law*<br />

<strong>Daimler</strong>'s policy on antitrust issues is stipulated in its Integrity Code (page 20). Here it is stated that the<br />

company "complies fully with all applicable antitrust and trade laws and the corresponding laws on price setting,<br />

competition law, and consumer protection." It is further stated that these laws regulate "the company's relations<br />

with its competitors, suppliers, dealers, and customers. They prohibit agreements and other activities that fix or<br />

influence prices or conditions, divide up sales territories or customers, or illegally restrict free and open<br />

competition." Employees who have questions about these laws are asked to contact the Legal Affairs<br />

department.<br />

� Integrity Code (PDF, 148 KB)<br />

� <strong>Daimler</strong> AG Code of Ethics (PDF, 96 KB)<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management / Dialogue with public policy-makers<br />

Dialogue with public policy-makers<br />

In line with a Board of Management decision made in 2006, the Public Policy and External Affairs department is<br />

the coordination center for all dialogue with political decision- makers on issues relevant to our company. <strong>This</strong><br />

department carries out advance monitoring of our lob<strong>by</strong>ing activities to ensure compliance with our legal<br />

obligations and ethical standards. In addition, in 2007 we put in place specific standards for responsible<br />

lob<strong>by</strong>ing. These guidelines are currently being reworked and will soon be downloadable at this site.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Responsible corporate management /<br />

Principles regarding donations and sponsorship<br />

Principles regarding donations and<br />

sponsorship<br />

For sponsorships and donations, <strong>Daimler</strong> has put into place clearly defined responsibilities, transparent donation<br />

processes, and efficient control systems. The company’s donation activities are coordinated and steered <strong>by</strong> the<br />

Legal department on the basis of our corporate guideline on charitable contributions. In 2006, the company<br />

established the “Review Board on Sponsorship & Donations,” which approves substantial requests for donations<br />

and sponsorships. A database compiles information on the company’s sponsorship and donation activities on a<br />

global scale to achieve greater transparency. In 2007, the company supported institutions and projects for<br />

charitable causes with social sponsorships and donations amounting to € 35.89 million (project budget only,<br />

figures without U.S. due to the transfer of our majority interest in Chrysler in 2007).<br />

In some countries <strong>Daimler</strong> supports its own foundations in order to consolidate the company’s activities directed<br />

toward social goals. Brand and product-related sponsorship is coordinated <strong>by</strong> the business units and Corporate<br />

Sponsoring.<br />

Starting in 2008, instead of offering gifts to guests at our vehicle presentations around the world, we are<br />

donating the money we normally spend on such presents (altogether approximately € 90,000) to nonprofit<br />

organizations.<br />

In 2006 we introduced a separate set of rules as a guideline for donations to political parties. According to these<br />

rules, donations to political parties require authorization from the Board of Management on principle and are<br />

currently only permitted for parties in Germany.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Corporate management<br />

Corporate management<br />

The Board of Management controls the Group’s business activities jointly in accordance with the principle of<br />

collegiality.Notwithstanding the joint responsibility of Board of Management, each Board member manages his<br />

own portfolio on his own responsibility. After the demerger from Chrysler, the number of <strong>Daimler</strong> Board of<br />

Management members was reduced from nine to six. The Board’s functions include the strategic guidance of the<br />

Group and management of its daily business operations. It is also responsible for preparing the Annual Report<br />

and the corporate and interim <strong>report</strong>s, as well as for setting up and monitoring the risk management system.<br />

<strong>Daimler</strong> informs shareholders, financial analysts, shareholders’ associations, the media, and interested public<br />

about the situation of the Group and about any significant changes in its business.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Environmental management system<br />

Environmental management system<br />

Protecting the environment is a primary objective of the <strong>Daimler</strong> Group. It is a fixed component of our corporate<br />

strategy with basic objectives defined in the Group’s environmental protection guidelines, which are passed <strong>by</strong><br />

the Board of Management and are binding for all of our employees and business locations (see box). A detailed<br />

version of the environmental guidelines is available as a PDF file in the Download Center.<br />

As an automaker we must keep environmental protection in mind throughout the entire lifecycle of our products<br />

- from deliveries <strong>by</strong> our suppliers to development, logistics, production, sales and utilization, as well as the<br />

disposal or recycling of end-of-life vehicles.<br />

The Group’s environmental protection guidelines<br />

� We face the environmental challenges of the future <strong>by</strong> working continuously to improve the environmental<br />

performance of our products and operations.<br />

� We strive to develop products which in their respective market segments are highly environmentally<br />

responsible.<br />

� We plan all stages of manufacturing to provide optimal environmental protection.<br />

� We endeavor to achieve exemplary environmental performance worldwide.<br />

� We provide our employees and the public with comprehensive information on environmental protection.<br />

Production-related environmental protection. The certification of all our locations around the world in line with<br />

ISO 14001 and additional validation of our German locations <strong>by</strong> the EU’s Eco-Management and Audit Scheme<br />

(EMAS) are important elements of our environmental management system. The efficacy of the system is regularly<br />

audited <strong>by</strong> external experts. Today, more than 96 percent of our worldwide workforce is employed in production<br />

facilities with certified environmental management systems.<br />

The merging of the management systems for quality, environmental protection, and occupational health and<br />

safety into a single system is an important goal at <strong>Daimler</strong>. As a result, environmental protection tasks are being<br />

integrated even more fully into the core functions and processes of the respective units, instead of being dealt<br />

with as separate processes. An integrated concept has already been implemented since 2002 in the production<br />

facilities of Mercedes-Benz Cars around the world.<br />

In addition, our process for evaluating the environmental risks connected with our production facilities<br />

throughout the world helps us to identify environmental risks on the basis of uniform standards, minimize them,<br />

and thus to refine our preventive measures for environmental protection. These audits involve regular and<br />

systematic monitoring and assessment of the location’s environmental management system as well as the key<br />

areas of environmental protection, such as atmospheric emissions, wastewater, waste disposal, and handling of<br />

hazardous materials. Elimination of any existing environmental risks is a component of the target agreements<br />

concluded between the Board of Management and plant managements.<br />

Environmental protection in product development. Vehicle development takes place in a standardized process in<br />

which the vehicle specifications and quality gates (milestones in the development process) form the<br />

cornerstones. Environmental protection issues and requirements (fuel consumption, emissions, prohibited or<br />

prescribed materials, and recycling requirements) are an integral part of the vehicle specifications and are taken<br />

into account and managed throughout the entire product creation process within the framework of the quality<br />

gates.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Environmental management system / Organization of environmental management<br />

Organization of Group-wide environmental<br />

management<br />

We have developed clear structures, processes, and areas of responsibility which enable systematic pursuit of<br />

our environmental targets and make specific improvements (see the graphic). On behalf of the Board of<br />

Management of <strong>Daimler</strong> AG, the Board member responsible for Group Research and Mercedes-Benz Cars<br />

Development is also entrusted with the company’s environmental protection activities. In addition, we have<br />

established four functions or organizational units that are in charge of the central management of our<br />

environmental protection activities, as well as the cross-unit networking and communication of these activities:<br />

Corporate organization – environmental protection<br />

� A Chief Environmental Officer has been appointed to coordinate environmental management throughout the<br />

Group. He has also been commissioned <strong>by</strong> the Board of Management to oversee the central environmental<br />

management system and to advise the Board on environmental issues.<br />

� The corporate environmental protection unit (GR/ VGE) coordinates the operational requirements of Groupwide<br />

environmental management, including the analysis and implementation of legal requirements,<br />

monitoring progress toward environmental targets, defining and refining environmental standards, ensuring<br />

regular <strong>report</strong>ing on environmental issues, and risk management connected with environmental protection.<br />

� The Global Product Environmental Council comprises the environmental officers for products as well as<br />

representatives of the Corporate Strategy, Public Policy and External Affairs, and Communications functions.<br />

The Council analyzes product-related environmental issues, sets targets, coordinates cross-unit<br />

environmental protection tasks, and initiates overarching environmental protection projects.<br />

� Production-related environmental protection issues are dealt with <strong>by</strong> various regionally oriented committees<br />

that are coordinated <strong>by</strong> the Corporate Environmental Protection unit in cooperation with the Chief<br />

Environmental Officer.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Environmental management system / Environmental award for employees*<br />

Environmental award for employees*<br />

All of our employees are responsible for the success of our environmental protection measures. That’s why we<br />

organize training programs in the area of environmental protection for our workforce. In addition, every two years<br />

we run a Group-wide competition for the “Environmental Leadership Award” (ELA), which is granted in<br />

recognition of projects that promote environmental protection within the Group (see also “An award that<br />

promotes environmental protection”, below).<br />

An award that promotes environmental protection<br />

Since 2006, the Mercedes production plant in Untertürkheim has saved around 52 million kilowatt-hours of<br />

electric energy, 130 million kilowatt-hours of heat, and 500,000 cubic meters of drinking water. That’s a huge<br />

success for the environment and the company, thanks to the initiatives taken <strong>by</strong> an environmentally conscious<br />

and active workforce. A project team from the plant established a number of highly diverse approaches to saving<br />

energy; this was acknowledged with <strong>Daimler</strong>’s 2007 Environmental Leadership Award (ELA).<br />

Every two years, the company invites Group employees to compete for the ELA in the categories “Productionrelated<br />

environmental protection,” “Product-related environmental protection,” and “Outstanding environmental<br />

commitment.” Pioneering projects for advancing environmental protection and sustainability within the company<br />

are acknowledged with awards from the Board of Management. In this way, we are promoting the interest of our<br />

workforce in environmental protection and honoring their environmental commitment. The award winners in<br />

Untertürkheim optimized not only energy utilization in buildings and production facilities but also administrative<br />

processes. They also involved the workforce and the management in measures to implement their holistic<br />

concept for saving energy. By sensitizing their fellow employees to these issues, they achieved significant energy<br />

savings.<br />

Two other projects received the glass ELA trophies in 2007. In one of these projects, employees developed an<br />

emissions aftertreatment system for BLUETEC buses which fulfills the voluntary European Enhanced<br />

Environmentally Friendly Vehicles (EEV) standards and also applies to company vehicles. The other project<br />

successfully utilized an innovative technology for cleaning groundwater. In 2007, <strong>Daimler</strong> awarded the ELA for<br />

the sixth time, choosing the winners from the 67 projects that were submitted.<br />

Every two years since 2000, <strong>Daimler</strong> has been presenting its Environmental Leadership Award (ELA) to<br />

employees who have actively promoted environmental protection at the company. <strong>This</strong> brochure presents the<br />

finalists and winners in 2007.<br />

Environmental leadership award 07. Finalists and Winners (PDF, 2.9 MB)<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Human resources management / Organization and management<br />

Organization and management<br />

The Human Resources organization of <strong>Daimler</strong> is an integral part of the Group’s management structure. The<br />

approximately 7,000 people working in this organization all over the world are responsible for all our employeerelated<br />

functions and processes. <strong>Daimler</strong> pursues a global human resources strategy that is in line with its<br />

corporate goals. It is based on five pillars: Profitability, Competitive Workforce, Leadership Capabilities, Employer<br />

of Choice, and Operational Excellence.<br />

HR management scheme – integrated HR functions<br />

The Board of Management member responsible for Human Resources, who is also the Group’s Labor Relations<br />

Director, is responsible for the human resources operations within the Group. The Human Resources<br />

organization is divided into three key areas:<br />

� Group functions, which are responsible for human resources strategy, policy, and guidelines throughout the<br />

Group;<br />

� divisional human resources functions, which are responsible for human resources work in the business units<br />

and Group locations, and for the implementation of the company’s human resources strategy;<br />

� service centers, which provide human resources services at the regional level.<br />

The highest decision-making body in the Human Resources organization is the Human Resources Executive<br />

Committee. It consists of the heads of the corporate, divisional, and service functions within the Human<br />

Resources organization, and is headed <strong>by</strong> the Board of Management member responsible for Human Resources.<br />

The “Global Human Resources Scorecard” is an important management tool in this area. It, in turn, is an integral<br />

part of the strategic scorecard of the Group as a whole. Through the success factors and their performance<br />

measurement criteria (currently 14) – which are known as the key performance indicators (KPIs) – it is possible<br />

to compile global key figures concerning human resources in a targeted manner. <strong>This</strong> makes it possible to<br />

measure the success of human resources processes and strategies. The information gained in this manner is<br />

used to design the most important functional human resources measures in the goal agreement process of all<br />

human resources directors. The Global Human Resources Scorecard provides targeted support for the business<br />

strategies and processes in the divisions and creates the foundation for a continual mutual learning process<br />

within the Group through best practices.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Human resources management / Organization and management<br />

Global HR Scorecard – Erfolgsfaktoren und Key Performance Indicators (KPIs)


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Human resources management / Principles of manager development<br />

Principles of manager development<br />

The development of managers at <strong>Daimler</strong> is carried out in strict accordance with a uniform process at all levels of<br />

the company worldwide: the Leadership, Evaluation, and Development Process, or LEAD for short. It has been<br />

refined and adjusted to the long-term strategic goals of the Group. In addition to simplifying the structure of the<br />

LEAD processes and making them more efficient, the refinement process focused on formulating the seven new<br />

“leadership competencies.” Derived from the corporate values, they provide a conceptual framework for<br />

managerial activities and a basis for evaluating and developing the <strong>Daimler</strong> management team.<br />

A manager<br />

� thinks and acts strategically and provides orientation;<br />

� acts in accordance with the needs of customers and markets;<br />

� promotes innovation and structures processes of change;<br />

� demands and promotes top performance and actively fosters employee development;<br />

� promotes diversity and creates a culture of cooperation and learning;<br />

� implements decisions and achieves agreed-upon objectives; and<br />

� takes on responsibility and acts in a credible manner.<br />

The more detailed descriptions of the leadership competencies also include aspects such as sustainability,<br />

diversity, and social responsibility.<br />

A manager<br />

� develops a realistic strategy for the sustainable further development of his or her own area of responsibility;<br />

� acts with a sense of responsibility toward society, the environment, and all of the important interest groups;<br />

� sets an example of ethically correct and responsible behavior, and also expects it from others;<br />

� actively promotes the inclusion of different points of view and creates added value through diversity.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Management of supplier relations<br />

Management of supplier relations<br />

The global procurement strategy rests on three pillars:<br />

1. the ambition to achieve economies of scale worldwide<br />

2. successfully managing a global supplier base<br />

3. employing efficient processes and a tried and tested infrastructure.<br />

Because the transatlantic ties of the previous procurement organization GP&S were particularly strong in the<br />

area of processes and systems, the focus in 2008 is on creating new concepts and processes.<br />

We employ a global, performance-oriented approach in our dealings with suppliers. The focus here is on the four<br />

value drivers of quality, technology, costs, and logistics. Conduct also plays an important role, where<strong>by</strong> the<br />

pertinent guidelines are derived from our principles of social responsibility. It is therefore crucial that an open<br />

and continuous exchange takes place regarding goals, requirements, and the progress that has been made. Just<br />

as we are committed to integrity, we also expect our suppliers to behave in accordance with ethical standards.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Dialogue with our stakeholders<br />

Management of dialogue with our<br />

stakeholders<br />

<strong>Daimler</strong> engages in dialogue with its stakeholders all over the world and includes them in its business operations.<br />

A critical factor for us in the identification and evaluation of our stakeholders is the question of whether, and to<br />

<strong>what</strong> extent, a specific group of people is affected <strong>by</strong> our company’s activities. The following major issues have<br />

turned out to be particularly important for this dialogue, and the Group has contact persons who are responsible<br />

for each of these issues.<br />

� The Investor Relations unit is responsible for communicating with investors and shareholders;<br />

� Corporate Environmental Protection coordinates the dialogue with stakeholders about environmental issues;<br />

� the development units of the divisions are in charge of vehicle safety issues;<br />

� Human Resources is responsible for contact and communication with the employees regarding personnel<br />

issues that affect them (both at headquarters and at the Group locations);<br />

� our procurement organization engages in an ongoing dialogue with our suppliers and other automakers<br />

concerning social and environmental issues that are relevant to procurement;<br />

� Public Policy and External Affairs and the Corporate Development team coordinate the dialogue with elected<br />

officials and governmental bodies and with associations regarding political and Group-related issues;<br />

� Corporate Communication deals with media inquiries.<br />

The newly established Sustainability Board will play a key role in multi-issue and cross-divisional coordination. It<br />

will also consider the use of new and more extensive measures.<br />

Stakholders at <strong>Daimler</strong> – two-way relationships


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Dialogue with our stakeholders / Dialogue with interest groups*<br />

Dialogue with interest groups*<br />

Since 2007 we have intensified our contacts with important stakeholder groups and initiated cooperative<br />

activities in key areas related to sustainability:<br />

Environment:<br />

� We are working together with the United Nations Environmental Programme (UNEP), WWF, and the Ministry<br />

for Nutrition and Rural Areas of the German state of Baden-Württemberg on a project to define sustainability<br />

standards for the cultivation of biomass for biofuels.<br />

� For many years now, <strong>Daimler</strong> has been a member of the German Environmental Management Association<br />

(B.A.U.M.); "econsense", a network of companies dedicated to sustainability; and the Forum for Sustainable<br />

Development.<br />

� We've been working together with the Öko-Institut in Berlin since 2003 on the issues of <strong>report</strong>ing and<br />

environmental performance.<br />

� We're also cooperating with environmental organizations, including the Global Nature Fund. In our dialogue<br />

with various environmental organizations such as BUND, Germanwatch, Greenpeace, and the European<br />

Federation for Transport and Environment, <strong>Daimler</strong> focuses in particular on the issues of CO 2 and emissions.<br />

Procurement/suppliers:<br />

� In 2006 <strong>Daimler</strong> launched a two-year cooperative project called "Transparency in the Supply Chain" in order<br />

to generate sustainability <strong>report</strong>s <strong>by</strong> a select number of our suppliers. The project was initiated <strong>by</strong> the Global<br />

Reporting Initiative (GRI) and German Technical Cooperation (GTZ). In 2007 we carried out the associated<br />

workshops on site; the selected suppliers subsequently prepared their initial <strong>report</strong>s.<br />

� As part of the further development of our cooperation model with the suppliers (Extended Enterprise) there<br />

were discussions at the top management level between the <strong>Daimler</strong> procurement organization and the<br />

suppliers. The participants of these discussions were specifically asked to provide feedback about the<br />

cooperation. Societal and environmental issues are also being discussed in an ongoing process of<br />

information exchange about daily business between suppliers and the procurement organization.<br />

� In order to define the most uniform possible future standards for dealing with sustainability issues in the<br />

supply chain, <strong>Daimler</strong> AG is working closely with representatives of a number of other automakers. The aim<br />

of these talks is to share experiences and combine activities.<br />

Society:<br />

More information about concrete projects and cooperative activities is available in the section „Customers and<br />

Society“.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Managing sustainability / Customer relations management<br />

Customer relations management<br />

Through our brand positioning we have clearly defined <strong>what</strong> our customers can expect from Mercedes-Benz<br />

passenger cars: appreciation! In order to reliably fulfill this promise in all areas, Mercedes-Benz Cars established<br />

the long-term program “Customer Satisfaction No. 1” – “CSI No. 1” for short – in 2006. We cultivate customer<br />

satisfaction, and customer loyalty in particular, <strong>by</strong> endeavoring to exceed our customers’ expectations in terms<br />

of sales and service. Our objective is to attain the top position in customer satisfaction in the premium segment<br />

<strong>by</strong> the end of this decade. Because our customers always regard Mercedes-Benz as a unit, the CSI No. 1 program<br />

has been precisely defined with a concrete target. CSI No. 1 comprises the following:<br />

� a specific, clearly structured, and prioritized program of action that begins with clear process descriptions at<br />

the point of sale<br />

� a purposeful training program and customized consulting<br />

� measurable performance criteria, and new incentive models that offer the right kind of motivation.<br />

For Mercedes-Benz Cars, CSI No. 1 is therefore a strategy that differentiates us from our competitors and lays<br />

the groundwork for sustainable growth and profitability, so that we can exceed our customers’ expectations in<br />

sales and after-sales (service).<br />

At <strong>Daimler</strong> Trucks as well, customer satisfaction is a top priority. “Our passion is to make our customers<br />

successful with our products and services,” according to a Truck Group statement about its values. On the basis<br />

of this claim, <strong>Daimler</strong> Trucks has established a customer relations management system that is tailored to the<br />

specific needs of customers from diverse sectors. It takes account of customer satisfaction not only in<br />

purchasing, but over a vehicle’s entire service life.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy<br />

Economy. Our goal is to continuously create value for our shareholders, customers,<br />

and employees. We are therefore focusing our efforts on strengthening our<br />

competitiveness and ensuring our long-term business success.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy / Foreword<br />

<strong>Dear</strong> <strong>readers</strong>,<br />

The year 2007 was marked <strong>by</strong> an extensive reorganization of our company. By relinquishing our majority holding<br />

in Chrysler and renaming the Group <strong>Daimler</strong>, we launched a new chapter in the history of our company. <strong>Daimler</strong><br />

is beginning its existence as a strong and financially sound enterprise.<br />

Everything we do is geared toward our long-term business success. That’s because only a successful company<br />

can achieve growth from a position of strength, offer its shareholders outstanding prospects, and provide its<br />

employees with secure jobs. Using this solid business foundation as a starting point, we will be able to intensify<br />

our environmental protection measures and invest extensively in alternative drive system technologies.<br />

To ensure our sustained success, we have not only put into place strategies for the individual divisions and<br />

business units, but also hammered out long-term goals following extensive internal discussions. These objectives<br />

are:<br />

� to achieve an average return on sales of 10 percent at the Mercedes-Benz Cars division from 2010 on,<br />

� to achieve an average return on sales of 8 percent across all business cycles at <strong>Daimler</strong> Trucks beginning in<br />

2010,<br />

� to increase profitability at Mercedes-Benz Vans,<br />

� to further consolidate our leading global position at <strong>Daimler</strong> Buses, and<br />

� to achieve a return on equity of at least 14 percent at the <strong>Daimler</strong> Financial Services division.<br />

� Based on these targets for the operating units, <strong>Daimler</strong> seeks to achieve a return on sales of 9 percent in its<br />

automotive business across all market and product cycles.<br />

In 2007, external evaluators recognized the efforts we’ve made to align our business activities with the principles<br />

of sustainability. The <strong>Daimler</strong> AG share was included in the Dow Jones Sustainability Index (DJSI) for the third<br />

consecutive year, for example, and was also listed in the European Dow Jones STOXX Sustainability Index. In<br />

addition, <strong>Daimler</strong> received favorable marks for its commitment to sustainability from the sustainability rating<br />

agencies Oekom, Vigeo, and AccountAbility.<br />

Thanks to our financial strength and the expertise of our company and its employees in the field of drive systems<br />

for sustainable mobility, we’re excellently equipped to meet the challenges our industry will face in the future.<br />

Bodo Uebber<br />

Member of the Board of Management<br />

Finance and Controlling/<strong>Daimler</strong> Financial Services


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy / Business development in 2007<br />

Business development in 2007<br />

The 2007 business year was characterized <strong>by</strong> the comprehensive restructuring of our company. The sale of the<br />

majority of Chrysler Holding LLC and the renaming of <strong>Daimler</strong>Chrysler as <strong>Daimler</strong> opened up a new chapter in<br />

our company’s history. The new <strong>Daimler</strong> AG was launched as a strong and financially healthy company. With<br />

Mercedes-Benz Cars, <strong>Daimler</strong> Trucks, Mercedes- Benz Vans, <strong>Daimler</strong> Buses, and <strong>Daimler</strong> Financial Services, we<br />

are focusing on successful business areas with well-defined strategies and good prospects.<br />

The <strong>Daimler</strong> Group sold a total of 2.1 million vehicles in 2007, or 1 percent more than in the prior year. Revenues<br />

of € 99.4 billion were at the prior year’s level. When adjusted for exchange-rate effects, revenues rose <strong>by</strong> 3<br />

percent. For the year as a whole, the company’s business development was very positive in 2007, with earnings<br />

before interest and taxes (EBIT) totaling € 8.7 billion. <strong>This</strong> result surpassed the year’s earnings target of at least €<br />

8.5 billion.<br />

Unit sales structure<br />

The Mercedes-Benz Cars division posted a new sales record in 2007, when its sales of passenger cars increased<br />

<strong>by</strong> 3 percent to 1,293,200 units. Sales of Mercedes-Benz brand cars also rose <strong>by</strong> 3 percent, to 1,180,100 units,<br />

mainly due to the extraordinary success of the new C - Class. Sales of the smart brand, amounting to 103,100<br />

units, matched the previous year’s figure even though the product range was reduced from three production<br />

series to one with an exclusive focus on the smart fortwo. The new fortwo model has met with a high level of<br />

customer acceptance since it first became available in April 2007. For this reason, sales of the smart fortwo<br />

increased <strong>by</strong> 50 percent to 102,100 units overall.<br />

At the International Motor Show (IAA) in Frankfurt in September 2007, we demonstrated that comfort<br />

requirements and environmental consciousness are not mutually exclusive. Under the motto “Fascination and<br />

Responsibility,” Mercedes-Benz presented a wide range of new models that are extremely clean and fuelefficient.<br />

Besides the F 700 research vehicles with DIESOTTO and hybrid drives, the so-called “Road to the Future”<br />

featured 19 future models, including seven hybrids from five model series and the B-Class F-Cell equipped with a<br />

zero-emission fuel cell drive. We will continue to offer our customers luxurious, safe, and environmentally<br />

compatible automobiles in the future.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy / Business development in 2007<br />

Unit sales structure<br />

In 2007, <strong>Daimler</strong> Trucks sold a total of 467,700 (2006: 516,100) heavy, medium and light-duty vehicles. The<br />

primary reason for this expected drop in sales was the lower demand for trucks in the U.S., Canada, and Japan,<br />

where tighter emissions standards caused many companies to purchase vehicles earlier than planned in 2006.<br />

Another factor impacting the truck business was the general downturn of the U.S. market. As a result of these<br />

developments, sales of the Trucks NAFTA unit dropped <strong>by</strong> 36 percent to 119,000 vehicles. Trucks Europe/Latin<br />

America, on the other hand, posted an increase of 13 percent to 159,900 vehicles. At Trucks Asia, the Mitsubishi<br />

Fuso brand sold 188,700 vehicles and there<strong>by</strong> performed more or less on a par with the prior year.<br />

In 2007, <strong>Daimler</strong> Trucks continued to focus on reducing the fuel consumption and exhaust emissions of<br />

commercial vehicles. In November 2007, as part of the “Shaping Future Transportation” initiative, we presented<br />

vehicles from the Mercedes-Benz, Freightliner, Mitsubishi Fuso, Orion, and Thomas Built Buses brands that are<br />

equipped with alternative drive systems and operate with alternative fuels. <strong>Daimler</strong> is the global market leader<br />

when it comes to commercial vehicles with hybrid drives.<br />

<strong>Daimler</strong> Financial Services experienced generally stable development in 2007. The business year was impacted<br />

<strong>by</strong> the separation of Chrysler’s financial services business in North America, which had become necessary due to<br />

the transfer of a majority interest in Chrysler. Global contract volume rose <strong>by</strong> 4 percent to € 59.1 billion;<br />

adjusted for exchange-rate effects, it increased <strong>by</strong> 9 percent. At the end of 2007, the division’s portfolio included<br />

2.3 million leased and financed vehicles. New business totaling € 27.6 billion was at roughly the same high level<br />

as in the prior year. When adjusted for exchange rate effects, new business actually increased <strong>by</strong> 3 percent.<br />

In 2007, <strong>Daimler</strong> Financial Services also launched a range of new products in various markets in response to<br />

customer demands for package solutions. Besides financing or leasing, these mobility packages also include<br />

insurance, maintenance, and other vehicle-related services that are charged at a single monthly rate.<br />

The Mercedes-Benz Vans unit posted a new sales record <strong>by</strong> selling 289,100 vehicles (+13 percent) in the year<br />

under review. The new Sprinter was particularly successful, boosting sales <strong>by</strong> 17 percent to 184,300 units. The<br />

Vito/Viano also performed well, with sales increasing <strong>by</strong> 6 percent to 104,600 vehicles.<br />

The <strong>Daimler</strong> Buses unit exceeded the prior year’s high sales level <strong>by</strong> 8 percent. The unit successfully defended its<br />

leading market position <strong>by</strong> selling a total of 39,000 complete buses and chassis of the Mercedes- Benz, Setra,<br />

and Orion brands.<br />

We expect a moderate increase in business volume in 2008, to which all operations will probably contribute. The<br />

focus of expansion is likely to be mainly in the growth markets of Asia and Eastern Europe. Our medium- term<br />

goal is to exploit additional sales and revenue potential in all of our vehicle segments. To this end, we defined<br />

and published clear targets for all divisions. Our goal at Mercedes-Benz Cars is to achieve an average return on<br />

sales of 10 percent <strong>by</strong> 2010 at the latest. At 8 percent over the entire business cycle, the target for <strong>Daimler</strong><br />

Trucks is some<strong>what</strong> lower. Finally, <strong>Daimler</strong> Financial Services plans to continue to achieve a return on equity of<br />

at least 14 percent in the future.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy / Business development in 2007<br />

On the basis of the divisions’ confirmed projections, in 2008 we expect the <strong>Daimler</strong> Group to post EBIT from<br />

ongoing operations of well above the prior-year level. Effects related to Chrysler are not included therein. In the<br />

year 2007, earnings included positive contributions in particular from the transfer of shares in EADS and negative<br />

contributions from Chrysler and related to the New Management Model. In our automotive business we aim to<br />

achieve an average return on sales of 9 percent across all market and product cycles.<br />

<strong>Daimler</strong>: A Strong and Optimistic New Beginning<br />

Our company’s key event of 2007 is also reflected in our name. Following the transfer of a majority interest in<br />

Chrysler and of the associated financial services business to the investment company Cerberus, an Extraordinary<br />

Shareholders’ Meeting decided to rename <strong>Daimler</strong>Chrysler as <strong>Daimler</strong>.<br />

After deliberating all of the risks and opportunities involved, the shareholders came to the conclusion that the<br />

transfer of the Chrysler shares was the best solution. The strengthening of our company’s financial basis has<br />

provided it with additional scope for shaping business developments and making investments. The demerger has<br />

made us less dependent on the volatile North American volume market and substantially reduced the risks we<br />

face from Chrysler’s healthcare and pension liabilities. As a result, <strong>Daimler</strong>’s profitability has increased<br />

substantially.<br />

We can now fully concentrate our efforts on doing <strong>what</strong> we do best: making firstclass cars and commercial<br />

vehicles and developing a comprehensive range of product-related services.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy / Business development in 2007 / Consolidated revenues according to division and region*<br />

Consolidated revenues according to<br />

division and region*<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy / The <strong>Daimler</strong> share in sustainability indexes<br />

The <strong>Daimler</strong> share in sustainability indexes<br />

In the course of 2007, the price of the <strong>Daimler</strong> share increased <strong>by</strong> 42 percent to € 66.50. The share price<br />

considerably outperformed the German stock index (DAX) and the European automotive sector as a whole.<br />

Our efforts to organize our business operations in accordance with the principle of sustainability were also<br />

honored in business year 2007 in external evaluations of our performance. The <strong>Daimler</strong> share (DAI) was listed for<br />

the third time in a row in the Dow Jones Sustainability Index (DJSI), one of the world’s most renowned<br />

sustainability indexes. The index rates a company’s commitment to sustainability according to economic,<br />

environmental, personnel, and social criteria. <strong>This</strong> assessment confirmed the inclusion of the <strong>Daimler</strong> share in<br />

the Dow Jones STOXX Sustainability Index (DJSI StOXX), which <strong>report</strong>s on the share price performance of<br />

European companies that are particularly committed to sustainability. In addition, <strong>Daimler</strong>’s commitment was<br />

also positively assessed <strong>by</strong> the sustainability rating agencies Oekom, Vigeo, and AccountAbility.<br />

Sustainability rating agencies and indexes<br />

Rating agencies 2005/2006 2006/2007<br />

Sustainable Asset Management (SAM) Evaluated (09/2006) Evaluated (09/2007)<br />

Vigeo Evaluated (04/2006) Evaluated (04/2006)<br />

AccountAbility 15th place (10/2006) 10th place (11/2007)<br />

Imug/eiris Evaluated (08/2006) Evaluated (08/2006)<br />

SiRi (scoris) – DAX 30 sustainability rating 2 nd (06/2005) 12 th place (12/2007)<br />

Oekom research – automotive industry 5 th (06/2006) 5 th place (06/2006)<br />

Core Ratings – automotive industry Evaluated Evaluated<br />

Indexes 2005/2006 2007 Internet address<br />

Dow Jones Sustainability Index Listed (09/2006) Listed (09/2007) www.sustainability-indexes.com<br />

ASPI Index Listed (04/2006) Listed (04/2006) www.vigeo.fr<br />

FTSE4 Good Index Not listed Not listed www.ftse.com/ftse4good/


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy / The economic significance of the automotive industry<br />

The economic significance of the<br />

automotive industry<br />

The automotive industry is an engine for growth, revenues, employment, and prosperity all over the world.<br />

Passenger cars are the basis of individual mobility, while trucks ensure that goods can be supplied globally. In<br />

this way, the industry, and with it our company, has a big impact on the global economy. <strong>Daimler</strong>’s revenues<br />

alone are comparable to the gross domestic products of countries like Hungary and Ukraine.<br />

With nearly 750,000 employees, the German auto industry was once again one of the country’s biggest<br />

employers in 2007. In fact, the industry now has about 70,000 more employees than it had ten years earlier.<br />

Germany’s position as the world’s leading export nation is due primarily to the automotive industry, which<br />

accounted for more than half (€105 billion) of the country’s trade surplus.<br />

In addition, the auto industry makes a major contribution to investments in the German economy. For example,<br />

the sector’s gross investments in plant and equipment rose last year <strong>by</strong> almost 15 percent to more than €10<br />

billion. At more than €18 billion, the German automotive industry’s expenditures for research and development<br />

(R&D) are above average, and account for around one-third of the manufacturing sector’s total R&D outlay. In<br />

2007, <strong>Daimler</strong> invested € 4.1 billion in R&D activities worldwide.<br />

<strong>Daimler</strong> AG’s economic strength particularly benefits the German state of Baden-Württemberg and the city of<br />

Stuttgart, where the company is based. In fact, the state accounts for a quarter of all the jobs in the German<br />

automotive industry, and its unemployment rate is far below the national average.<br />

<strong>Daimler</strong>’s tax payments in 2007 totaled €1.0 billion. But that’s only a fraction of the payments that the Group<br />

makes directly or indirectly to the public authorities. The state also benefits in other ways from the company’s<br />

funds – for example, from personnel expenses and social contributions (€ 20.1 billion) as well as from taxes on<br />

dividends and revenues. In addition, tax is paid <strong>by</strong> the supplier industry, financing companies, dealerships, and<br />

service providers.<br />

Above and beyond our core business operations – selling automobiles – <strong>Daimler</strong> also benefits the economy and<br />

society in other ways. For example, the Group provides financial support to community projects and promotes<br />

infrastructure services <strong>by</strong> setting up its own sports centers.<br />

Indirect influences of the global automotive industry


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Economy / Global procurement<br />

Global procurement<br />

After the demerger from Chrysler, the global <strong>Daimler</strong>Chrysler procurement system, Global Procurement &<br />

Supply, was transformed into a new procurement organization called Corporate Procurement Services (CPS). It<br />

combines the three procurement units Procurement Mercedes-Benz Cars and Vans (PMC), Procurement Trucks<br />

and Buses (PTB), and International Procurement Services (IPS). The tasks and areas of responsibility are clearly<br />

distributed among the purchasing departments of the units and <strong>Daimler</strong> Trucks and Buses (PMC and PTB).<br />

The operational responsibility for the procurement of production materials lies with the procurement units of<br />

Mercedes-Benz Cars and Vans and of <strong>Daimler</strong> Trucks (PMC and PTB). The globally oriented organization<br />

International Procurement Services (IPS) purchases materials not related to production for the entire Group. CPS<br />

is responsible for procurement issues such as communication, supplier management, and processes. <strong>This</strong><br />

structure has been designed to enable the best possible balance between a functional approach and<br />

responsibility for financial results - which lies directly with the business units.<br />

Now that <strong>Daimler</strong> and Chrysler are two separate companies, special regulations are needed for the exchange of<br />

confidential purchasing information, for example regarding prices and conditions, or joint procurement activities.<br />

That’s why all contracts and agreements previously valid for both of these former Group entities have been - or<br />

are being - reworked to ensure separation. We will continue to look for and exploit areas where we can cooperate<br />

with Chrysler to the extent that the associated activities make business sense and are legally permissible.<br />

Sustainable supplier relationship management. We particularly wish to promote our collaboration with suppliers.<br />

That’s because we can only achieve our goals with the help of cooperative and reliable partners who share our<br />

views regarding sustainable partnership - not only economically, but also with respect to environmental<br />

protection and social concerns. To this end, a strategy group was established to more firmly integrate social<br />

responsibility and sustainability aspects in our procurement activities.<br />

We communicate our principles and guidelines at our global <strong>Daimler</strong> supplier portal, which is accessible to<br />

around 40,000 registered users. One of the most frequently used applications is the globally standardized<br />

External Balance Scorecard (EBSC), which translates our strategic goals for purchased products and services into<br />

measurable figures, thus enabling the employees at our procurement department and our suppliers to make<br />

objective comparisons. It is of crucial importance to <strong>Daimler</strong> that its suppliers implement its code of conduct and<br />

strive to perform in line with the aforementioned four value drivers that are employed for the EBSC. Other<br />

aspects can also be included in the evaluation, including human rights issues, and environmental and social<br />

concerns, such as the development of environmentally friendly materials and production methods.<br />

Because we take our responsibilities seriously, we responded to the drop in earnings experienced <strong>by</strong> many<br />

automotive suppliers last year <strong>by</strong> closely monitoring their business development as part of our supplier risk<br />

management activities. If a supplier is in difficulty, <strong>Daimler</strong> then decides whether it should institute support<br />

measures on its own or in concert with other automakers.<br />

Our procurement department is represented at more than 30 locations worldwide.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety<br />

Environmental protection, innovation, and safety. Our efforts to achieve sustainable<br />

mobility focus on using resources efficiently, reducing emissions, and enhancing road<br />

safety. Our innovations have a key role to play in all of these areas.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Foreword<br />

<strong>Dear</strong> <strong>readers</strong>,<br />

Dr. Thomas Weber Prof. Dr. Herbert Kohler<br />

We believe that one of our core missions is to make mobility sustainable and future-oriented. After all, we<br />

invented the automobile and we are passionate about shaping its future. We are ready and willing to accept a<br />

pioneering role when it comes to clean and safe automobiles. We therefore increased our investments in<br />

environmental protection <strong>by</strong> more than ten percent to € 1.85 billion in 2007.<br />

The strategic approach we have described in our “road map for sustainable mobility” is based on three pillars:<br />

� the ongoing optimization of our vehicles with innovative internal combustion engines;<br />

� the additional improvement of efficiency through hybridization – in other words, the combination of a<br />

combustion engine with an electric motor;<br />

� and zero-emission driving with fuel cell and battery drive systems.<br />

One focus of our road map is the reduction of our vehicles’ fuel consumption and thus their CO 2 emissions as<br />

well. In fact, because of our holistic approach our goal is to reduce all emissions across the board.<br />

For example, through our innovative BLUETEC technology for diesel engines we have set worldwide benchmarks.<br />

<strong>This</strong> technology effectively reduces all emissions, especially nitrogen oxides, and makes diesels as clean as<br />

gasoline engines. Since the introduction of BLUETEC in our commercial vehicles in 2005, we’ve sold more than<br />

150,000 BLUETEC trucks in Europe. We introduced this innovative technology in our passenger vehicles in the<br />

U.S. in October 2006. In Europe, BLUETEC has been available since the end of 2007 in the E 300 BlueTEC.<br />

BLUETEC diesel vehicles have the potential to generate even fewer emissions than the world’s most stringent<br />

emissions standards. In recognition of this achievement, the E 320 BlueTEC in the U.S. was named “World Green<br />

Car of the Year 2007.” BLUETEC has helped the diesel engine to stage a comeback in the U.S. that may have<br />

been surprising to many. For our passenger car model series with a diesel option, the proportion of diesels sold<br />

in the U.S. in 2007 was already 16 percent, and the success of our BLUETEC trucks in Europe shows that our<br />

environmentally friendly high-tech innovations are also winners in the market. The focus of our “Road to the<br />

Future” strategy is to enhance the fuel economy and reduce the emissions of our vehicles through modular<br />

technological concepts. We are successfully doing just that through our BlueEFFICIENCY models, for example,<br />

which we will introduce in various model series starting in 2008. <strong>This</strong> campaign was launched in February 2008<br />

when we presented our two C - Class models, the C 180 KOMPRESSOR BlueEFFICIENCY and the C 200 CDI<br />

BlueEFFICIENCY.<br />

BlueEFFICIENCY consists of various packages of measures, from aerodynamic fine-tuning to energy<br />

management. Depending on the model in question, these measures generate fuel savings of up to 12 percent<br />

compared to the basic model without any reduction of safety or comfort. Starting in 2009 we will also<br />

successively launch various hybrid models on the market: BlueHYBRIDs with a gasoline engine and BlueTEC<br />

HYBRIDs with a diesel engine. The combination of an internal combustion engine and an electric motor makes it<br />

possible to reduce fuel consumption <strong>by</strong> up to 30 percent.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Foreword<br />

A central role is played here <strong>by</strong> lithium-ion battery technology, a field in which we recently achieved a significant<br />

breakthrough. We are the world’s first manufacturer to have succeeded in adapting lithium-ion technology to the<br />

demanding requirements of automotive applications. The technology was previously used primarily in the field of<br />

consumer electronics. We have safeguarded this achievement <strong>by</strong> taking out 25 patents, and we will launch our<br />

development on the market as early as 2009 in the S 400 BlueHYBRID.<br />

Dr. Thomas Weber<br />

Member of the Board of Management<br />

Group Research and Development Mercedes-Benz Cars<br />

Prof. Dr. Herbert Kohler<br />

Vice President Group Research and Advanced Engineering<br />

Vehicle and Powertrain, Chief Environmental Officer


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Environmental protection in the product lifecycle<br />

Environmental protection in the product<br />

lifecycle<br />

As a globally operating automobile manufacturer, we have a special responsibility to help design viable systems<br />

for mobility in the future. Our overriding goal here is to continually and consistently improve the environmental<br />

soundness of our products and business activities. To this end, we focus on the environmental impact of our<br />

products over their entire lifecycle, from development and production to service and recycling. We thus pursue a<br />

holistic approach that takes into account all aspects and lifecycle phases of our automobiles. We refer to this<br />

approach at <strong>Daimler</strong> as “TrueBlueSolutions” for sustainable mobility.<br />

The following chapters review the individual stages of the product lifecycle and describe the measures we<br />

employ in each one to conserve resources and minimize pollutant emissions.<br />

Product lifecycle<br />

The graphic on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety<br />

Innovation, development and safety<br />

The key objectives associated with sustainable mobility include the reduction of fuel consumption and CO 2<br />

emissions, the minimization of other pollutant emissions, and the further optimization of our vehicles’ safety<br />

features. <strong>Daimler</strong> has made significant progress in all of these areas over the last few years and will continue to<br />

do so in the future. To this end, approximately 18,000 men and women are currently employed <strong>by</strong> our research<br />

and development departments. At the moment, our development activities are centered on achieving further<br />

reductions in CO 2 emissions. In order to achieve this goal, the Group is focusing on two fields of activity: vehicles<br />

and powertrains on the one hand (core activities), and fuels on the other (support activities).


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Climate protection and CO 2 *<br />

Climate protection and CO 2 *<br />

In 2007, the Intergovernmental Panel on Climate Change (IPCC) presented its Fourth Assessment Report. The<br />

<strong>report</strong>’s key findings are:<br />

� The concentration of CO 2 measured in the atmosphere today is significantly higher than it was at the dawn of<br />

the Industrial Revolution (1750). What's more, such a high concentration has not been present for thousands<br />

of years.<br />

Climate change<br />

� The climate changes can be measured on the basis of increasing air and water temperatures, the melting of<br />

snow and ice, and a rising sea level.<br />

� It is considered highly probable that climate change is primarily the result of anthropogenic greenhouse gas<br />

emissions.<br />

� By contrast, the contribution made to global warming <strong>by</strong> natural processes such as volcanism and<br />

fluctuations in solar activity is much smaller and therefore cannot explain the type, pace, and scope of the<br />

climate changes occurring.<br />

� It is also considered highly probable that if CO 2 emissions either remain at current levels or rise, the impact<br />

such emissions will have on the global climate in the 21st century will be more severe than the influences<br />

observed in the 20th century.<br />

It is now widely accepted that the Earth’s climate is changing overall and that human actions are largely<br />

responsible for this development. Transportation is responsible for around 24 percent of the CO 2 emissions<br />

generated <strong>by</strong> human beings in Europe. Passenger car traffic is responsible for 12 percent of the total.<br />

In February 2007, the EU Commission presented a strategy paper that calls on all manufacturers in Europe to<br />

introduce modifications in their new car models to reduce their fleet CO 2 emissions to an average of 130 grams<br />

per kilometer <strong>by</strong> 2012. A further reduction of 10 grams is to be achieved <strong>by</strong> additional measures such as<br />

improving the efficiency of vehicle components (tires, for example) and a gradual transition to fuels containing<br />

less CO 2 . In December 2007, the EU Commission published an initial draft proposal for reducing CO 2 emissions<br />

from passenger cars and light trucks. The legislation process is expected to be completed <strong>by</strong> 2009, after which<br />

the regulation will apply in every EU member state.<br />

Especially in view of the facts outlined above, our strategy continues to aim at further reducing CO 2 emissions<br />

and fossil fuel consumption. Whatever form the EU's still unclear draft proposal for reducing CO 2 emissions of<br />

new vehicles may take, <strong>Daimler</strong> will further reduce the emissions of its European fleet, with the aim of also<br />

meeting the EU fleet consumption target.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Climate protection and CO 2 *<br />

Since 1995, we have reduced the CO 2 emissions of Mercedes vehicles sold in Europe <strong>by</strong> 21 percent; this<br />

reduction is nearly 50 percent higher than the average decrease for all European manufacturers. In Germany, the<br />

fuel consumption of our passenger cars has even declined <strong>by</strong> 32 percent since 1990. In addition, model updates<br />

have always involved an improvement of the vehicle's fuel consumption characteristics, thus further reducing<br />

CO 2 emissions. The CO 2 emissions of the new C-Class, for example, were reduced <strong>by</strong> 15 percent over the<br />

vehicle's entire lifecycle, <strong>by</strong> comparison to its predecessor. In the area of diesel engine development, the<br />

introduction of CDI technology has made it possible to significantly reduce fuel consumption. For gasoline<br />

engines, we achieved considerable fuel savings in comparison to previous engine types, thanks to the launch of a<br />

new generation of V6 engines, downsized supercharged drives, and direct gasoline injection (CGI). In addition,<br />

<strong>Daimler</strong> has developed the world's most successful three-liter car in the shape of the smart fortwo cdi, which has<br />

established itself on the market and is now being continued in the second generation. These examples vividly<br />

demonstrate the successful steps we have taken in terms of technology and product policy in order to reduce<br />

our fleet consumption. Despite such advances, the company has no plans to ease up in its efforts.<br />

Climate protection is one of <strong>Daimler</strong>’s areas of responsibility and is taken into account in its “road map for<br />

sustainable mobility.” Our initial focus here is the improvement of conventional drive systems. In addition, hybrid<br />

concepts offer greater fuel efficiency, primarily in city traffic. Zero-emission driving with battery-powered or fuel<br />

cell vehicles offers huge potential especially in large metropolitan areas. However, some obstacles still have to<br />

be overcome before these systems can be used in series-produced vehicles. We must continue to develop<br />

renewable processes for producing hydrogen and we must ensure that the vehicle technology is marketable at<br />

competitive prices. The first 100 smart ed models ever produced have been undergoing tests under everyday<br />

conditions in London since November 2007. In the summer of 2010, Mercedes-Benz will launch the B-Class F-<br />

Cell — the world’s first series-produced car with a fuel cell drive that produces zero emissions locally.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Sustainable mobility strategy for passenger cars<br />

Sustainable mobility strategy and<br />

implementation for passenger cars<br />

The Group’s long-term strategy for passenger cars involves the consistent further development of economical and<br />

environmentally friendly vehicles that make no sacrifices in terms of safety and comfort. Here, we’re pursuing a<br />

three-stage approach in order to conserve resources throughout the entire value creation process and minimize<br />

pollutant emissions (see chart: “<strong>Daimler</strong>’s road map to sustainable mobility”).<br />

1. Concerted development and optimization of our internal combustion engines.<br />

2. Further enhanced efficiency through hybridization.<br />

3. Emission-free driving with fuell cell and batterypowered vehicles.<br />

The combustion engine and its hybridization will continue to play a key role on the path to zero-emission mobility.<br />

The innovations and technologies that contribute to further reductions in fuel consumption and CO 2 emissions are<br />

summarized below:<br />

� Optimized combustion engines. CGI (stratified charge gasoline injection). Second- generation gasoline direct<br />

injection systems ensure optimal fuel utilization, there<strong>by</strong> generating fuel economy potential. Here, fuel is sprayed<br />

around the spark plugs in the shape of a hollow cone, which enables precise fuel dosages and thus optimized<br />

combustion. For example, as a result of the CGI system the Mercedes-Benz E 350 CGI now consumes 8.7 to 9.2<br />

liters of fuel per 100 kilometers – around 10 percent less than a vehicle equipped with a conventional V6<br />

gasoline engine that operates with duct injection. The CLS 350 CGI, which was introduced in April 2006, was the<br />

world’s first vehicle to feature spray-guided direct injection, a system that was then implemented in 2007 in the E<br />

350 CGI as well. We will begin converting our four-cylinder gasoline engines to this direct injection system in<br />

2009.<br />

DIESOTTO. DIESOTTO is a completely new engine concept from Mercedes-Benz that combines the best features<br />

of diesel and gasoline engines. In particular, it boasts outstanding fuel economy and thus reduced CO 2 emissions<br />

as well as lower nitrogen oxide emissions (NOx). The technology used is based on the principle of operating a<br />

gasoline engine in certain situations with auto ignition, like a diesel. The system also includes CGI gasoline direct<br />

injection combined with turbocharging, variable valve control, a lower number of cylinders, lower displacement,<br />

and an automatic start/stop feature. In 2007, the DIESOTTO engine was presented for the first time in the F 700<br />

research vehicle. The F 700, which is similar in size and appearance to the current S-Class series, achieves fuel<br />

consumption of only 5.3 liters per 100 kilometers, which corresponds to CO 2 emissions of just 127 grams per<br />

kilometer. The core elements of the DIESOTTO concept are now gradually being incorporated into the individual<br />

model series from Mercedes-Benz.<br />

NGT (Natural Gas Technology). Today, natural gas is considered a sensible alternative to conventional drive<br />

system concepts from both an economic and an ecological perspective. Natural gas contains less carbon than<br />

normal gasoline or diesel fuel, for example, and its combustion also produces less pollutant emission. Our NGT<br />

vehicles are equipped with a bivalent drive system that enables them to operate on either natural gas or<br />

premium-grade gasoline. The technology has been available since mid-2004 in the Mercedes-Benz E 200 NGT. A<br />

new model – the B 170 NGT BlueEFFICIENCY – will be launched in the summer of 2008.<br />

� “BlueEFFICIENCY” package. Our “BlueEFFICIENCY” package of innovative measures is based on a holistic<br />

approach to vehicle optimization and the use of intelligent solutions for improving the fuel economy of our<br />

vehicles even further. All of the measures employed are optimally aligned with one another, there<strong>by</strong> resulting in<br />

substantial fuel savings totaling approximately 10 percent. These measures include for example an extended<br />

gear ratio, a lower chassis, extremely low rolling resistance tires, and aerodynamic improvements. The first<br />

BlueEFFICIENCY models – the Mercedes-Benz C 180 Kompressor BlueEFFICIENCY and the C 200 CDI<br />

BlueEFFICIENCY – will be launched on the market in June 2008.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Sustainable mobility strategy for passenger cars<br />

� Model-specific hybrid modules. The combination of optimized combustion engines and customized hybrid<br />

modules enables further reductions in fuel consumption and CO 2 emissions. The first of three different hybrid<br />

solutions developed <strong>by</strong> the Group for the passenger car market has been available since October 2007 in the<br />

smart fortwo micro hybrid drive (mhd) model. The vehicle’s economical threecylinder gasoline engine is linked<br />

with an intelligent start/stop function that reduces fuel consumption from 4.7 to 4.3 liters per 100 kilometers.<br />

That corresponds to CO 2 emissions of 103 grams per kilometer. Additional models equipped with hybrid modules<br />

will be launched on the market in 2009.<br />

� Electric drives with fuel cells and battery.<br />

Fuel cell. Hydrogen-powered fuel cell vehicles offer the most promising possibility for zero-emission mobility that<br />

conserves resources, especially if the hydrogen used is produced from renewable sources. Inside a fuel cell, the<br />

chemical reaction between hydrogen and oxygen is converted into electrical energy, producing only water vapor<br />

as a <strong>by</strong>product in the process. At the same time, the vehicle-internal efficiency of fuel cell drives is around twice<br />

as high as that of today’s combustion engines.<br />

<strong>Daimler</strong>’s road map to sustainable mobility<br />

The latest generation of hydrogen-powered vehicles – the A-Class F-Cell, fuel cell Sprinters, and Citaro urban<br />

buses – is now proving itself in a global testing program. <strong>Daimler</strong> operates the largest fuel cell fleet of all<br />

manufacturers worldwide. Every day, these vehicles deliver vital data that will flow into the development of the<br />

next generation of vehicles and future fleet tests. In the summer of 2010, Mercedes-Benz will launch the B-Class<br />

F-Cell – the world’s first series-produced car with a locally emission- free fuel cell drive.<br />

Battery operation. Along with fuel cells, electric drive systems with batteries form an integral part of our<br />

sustainable mobility strategy. With energy consumption of only 12 kilowatt-hours per 100 kilometers, the smart<br />

fortwo ed with electric drive is the most economical and climate-friendly vehicle alternative for urban driving. The<br />

electric two-seater can travel approximately 115 kilometers on a fully charged battery, and dead batteries can be<br />

recharged up to 1,000 times or more using any 230-volt socket. The battery can therefore last as long as ten<br />

years. The first 100 smart ed models ever produced have been undergoing tests under everyday conditions in<br />

London since November, and in February 2008 the Group handed over its first smart ed test vehicle for Germany<br />

to the fleet of the energy supply company RWE. Our goal here is to begin series production of the model as soon<br />

as lithium-ion technology that meets all of our expectations becomes available.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Sustainable mobility strategy for passenger cars<br />

Concepts for reducing CO 2<br />

In February 2007, the European Commission presented a strategy paper that calls for the introduction of improved<br />

vehicle technology in order to reduce the CO 2 emissions of new cars in Europe to an average of 130 grams per<br />

kilometer <strong>by</strong> 2012. A further reduction of 10 grams is to be achieved through additional measures such as improving<br />

the efficiency of vehicle components and a step-<strong>by</strong>-step transition to fuels containing less carbon. At the end of<br />

2007, the Commission presented draft legislation for a new regulation that would govern such reductions.<br />

<strong>Daimler</strong> takes its responsibility here seriously and has already launched significant initiatives to help achieve these<br />

goals. It is very important, however, to maintain a consistent focus on overall vehicle concepts and attain an optimal<br />

balance between aspects such as improved fuel economy, the technology and costs associated with such<br />

improvements, and customer utility. In recent years the Group has taken effective steps that have considerably<br />

reduced the average CO 2 emissions of its fleet.<br />

Further reductions in fuel consumption and CO 2 emissions will be achieved through the introduction of our<br />

BlueEFFICIENCY passenger car models. Of exemplary character here are our two extremely economical<br />

BlueEFFICIENCY sedans, the C 180 KOMPRESSOR BlueEFFICIENCY and the C 200 CDI BlueEFFICIENCY, both of<br />

which will be added to the C-Class program in the spring of 2008. These vehicles illustrate how we were able to<br />

harness potential from all development units to create a package of intelligent measures and technologies that have<br />

reduced fuel consumption <strong>by</strong> up to 12 percent compared to corresponding production model variants.<br />

Overview of BlueEFFICIENCY measures in the C-Class series:<br />

Lightweight construction<br />

� Weight-optimized laminated windscreen<br />

� Firewall insulation with materials of varying thickness<br />

� Forged lightweight wheels<br />

Aerodynamics<br />

� Full underbody panelling with a smoth surface<br />

� Partially shrouded radiator grille<br />

� Sealed joints at the headlamps<br />

� Streamlined exterior mirror housings<br />

� Lowered suspension<br />

Rolling resistance<br />

� Newly developed tires with 17 percent less rolling resistance<br />

Energy management<br />

� Energy-saving control of the power steering’s servo pump<br />

Drive<br />

� Lower-displacement four-cylinder gasoline engine<br />

� Six-speed manual transmission with overdrive feature<br />

� Rear differentials with low-friction bearings and differential pinion<br />

� Longer rear axle ratio<br />

� Spray-guided gasoline direct injection in the C 350 CGI (end of 2008)<br />

Display concept<br />

� New display of real-time fuel consumption on the instrument panel with shift recommendation


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Sustainable mobility strategy for passenger cars<br />

Drive technologies from <strong>Daimler</strong><br />

Percentage share Vehicles with<br />

gasoline engine<br />

Vehicles with<br />

diesel engine<br />

Europe1 31.4 68.5 X X<br />

NAFTA 61.2 38.9 X X<br />

Japan 44.6 55.4 X X<br />

1 Approximately 0.4 percent of the vehicles with gasoline engines manufactured for Europe were manufactured as natural gas variants.<br />

2 0.05 percent of the vehicles sold worldwide were equipped with hybrid drive systems.<br />

3 <strong>Daimler</strong> operates the largest fuel cell vehicle fleet (cars, vans, and buses) of all manufacturers worldwide.<br />

Vehicles with<br />

hybrid drive 2<br />

Vehicles with<br />

fuel cell drive 3


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Sustainable mobility strategy for passenger cars / Model-specific hybrid modules*<br />

Model-specific hybrid modules*<br />

Automatic start-stop function. When the vehicle is not moving, the start-stop function automatically switches off<br />

the engine, thus avoiding unnecessary idling while the car is stationary. <strong>This</strong> not only results in substantial fuel<br />

savings in city driving but also reduces exhaust gas emissions and noise. In 2008, the belt-driven starter<br />

generator will initially be introduced in the A- and B-Class. The following models will be available from September<br />

2008:<br />

� A 150 BlueEFFICIENCY<br />

� A 170 BlueEFFICIENCY<br />

� B 150 BlueEFFICIENCY<br />

� B 170 BlueEFFICIENCY<br />

Mild hybrids. Mild hybrids are equipped with a disc-shaped electric motor. Located between the engine and the<br />

transmission, the motor acts as a starter as well as a generator. The electric motor serves as a generator during<br />

braking and stores the recuperated energy in a compact lithium-ion battery. The convenient start-stop feature<br />

also reduces fuel consumption <strong>by</strong> using the electric motor to boost the engine when the vehicle begins to<br />

accelerate at low engine speeds. Purely electric driving is, however, not possible. The combination of an<br />

automatic start-stop feature, brake energy recovery, and a boost function will be introduced to the European<br />

market for the first time in mid-2009, in the Mercedes-Benz S 400 BlueHYBRID.<br />

Full hybrids (two-mode hybrids). The two-mode hybrid is equipped with an electronically controlled transmission<br />

that connects an internal combustion engine and two electric motors with the wheel drives. Power can be<br />

variably distributed between the engine and the electric motors, enabling purely electric driving as well. The<br />

system has two driving modes, one of which is optimized for city driving, while the other is geared toward longdistance<br />

traveling. In this way, the system maximizes the fuel savings potential. <strong>Daimler</strong> will be introducing the<br />

two-mode hybrid to the market in 2009, in the Mercedes-Benz ML 450 BlueHYBRID.<br />

BlueTEC HYBRID. A further hybrid option is one that combines the diesel exhaust treatment system BLUETEC<br />

with a hybrid drive. The specific advantages that diesel engines offer in terms of fuel economy make BLUETEC<br />

hybrids much more efficient than any gasoline hybrid developed to date. <strong>This</strong> combination will be used in the<br />

Mercedes-Benz<br />

C 300 BlueTEC HYBRID and the S 400 BlueTEC HYBRID, both of which are scheduled to commence series<br />

production in 2010.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Sustainable mobility strategy for commercial vehicles<br />

Sustainable mobility strategy and<br />

implementation for commercial vehicles<br />

<strong>Daimler</strong>’s road map for sustainable transportation<br />

Freight transport volume continues to increase, and the rate of expansion is particularly high for its most flexible<br />

form, road transport. Experts are predicting that the transport volume will have doubled from its 2000 levels <strong>by</strong><br />

the year 2030. Ensuring that efficient mobility remains the foundation of social development for future<br />

generations as well will require us to use our resources wisely, reduce emissions, and provide for the highest<br />

possible levels of traffic safety. <strong>Daimler</strong>’s commercial vehicle units are shaping the future of mobility with clean<br />

and efficient drive systems and alternative fuels. Their efforts in these areas are combined in the “Shaping Future<br />

Transportation” initiative. The “road map to sustainable transportation,” involves numerous steps that focus on<br />

four main areas (see chart below):


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Sustainable mobility strategy for commercial vehicles<br />

� Resolute further development and optimization of our internal combustion engines. Experts are certain that<br />

diesel engines will remain the backbone of heavy-duty commercial vehicle drive systems for decades to<br />

come. <strong>This</strong> certainty stems from the fact that a comprehensive global infrastructure for diesel fuel and diesel<br />

engine production and servicing already exists – not to mention the great reliability and unsurpassed<br />

economy that diesel engines offer. The BLUETEC technology that has been available in our commercial<br />

vehicles since January 2005 saves between 1,500 and 2,000 liters of diesel fuel in long-distance truck<br />

operation per vehicle and year, as compared to other exhaust-gas treatment systems. <strong>This</strong> <strong>means</strong> that trucks<br />

equipped with BLUETEC, which currently number about 150,000, save approximately 300 million liters of fuel<br />

per year. Further fuel economy improvements can also be achieved <strong>by</strong> optimizing transmissions and<br />

powertrains. For example, the current generation of Mercedes PowerShift automated transmissions in<br />

Mercedes-Benz trucks leads to very low levels of fuel consumption.<br />

Natural gas is a good alternative to diesel drive systems in urban applications. The Mercedes-Benz Citaro<br />

CNG (compressed natural gas) is built as both a single and an articulated bus with a natural gas engine; there<br />

are currently around 900 such busses in use. The Citaro CNG was the first urban bus with a natural gas drive<br />

to comply with the strict EEV (Enhanced Environmentally Friendly Vehicle) emissions standard. Today there<br />

are 600 Mercedes-Benz Econic NGT models throughout Europe that are used for garbage collection and<br />

other municipal applications, and also serve as delivery vehicles. Like the Citaro CNG, the Econic NGT has<br />

lower emissions than those required <strong>by</strong> the Euro V or EEV standards, and also stands out through its low<br />

noise emissions. The use of natural gas vehicles does remain limited, however, <strong>by</strong> the complexity involved in<br />

storing their fuel in heavy pressurized tanks, as well as <strong>by</strong> the lack of a fuel infrastructure.<br />

� Hybrid vehicles. Hybrid drive systems display their superior fuel efficiency most clearly in everyday use in city<br />

traffic. Urban buses with hybrid drives are more environmentally friendly, and if they are equipped with a<br />

storage battery they even operate emissionfree over short stretches. Hybrid drive systems can also reduce<br />

the fuel consumption of light trucks for short-range distribution and heavy-duty long-distance trucks,<br />

depending on the topography involved. For the future, <strong>Daimler</strong> is also considering testing hybrid operation in<br />

long-houlage trucks and touring buses.<br />

� Emission-free drives on the basis of the fuell cell and purely electrical drives. A major test of 36 Mercedes-<br />

Benz Citaro fuel cell buses in ten European cities, as well as in Beijing (China) and Perth (Australia), has<br />

demonstrated that fuel cell drives function reliably under a broad range of practical conditions. In the next<br />

stage of development, the Citaro G BlueTec Hybrid model will serve as the basis for a Citaro fuel cell hybrid<br />

bus.<br />

Drive technologies from <strong>Daimler</strong><br />

Percentage share Vehicles with<br />

gasoline engine<br />

Vehicles with<br />

diesel engine<br />

Europe1 31.4 68.5 X X<br />

NAFTA 61.2 38.9 X X<br />

Japan 44.6 55.4 X X<br />

1 Approximately 0.4 percent of the vehicles with gasoline engines manufactured for Europe were manufactured as natural gas variants.<br />

2 0.05 percent of the vehicles sold worldwide were equipped with hybrid drive systems.<br />

3 <strong>Daimler</strong> operates the largest fuel cell vehicle fleet (cars, vans, and buses) of all manufacturers worldwide.<br />

Vehicles with<br />

hybrid drive 2<br />

Vehicles with<br />

fuel cell drive 3


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Sustainable mobility strategy for commercial vehicles / Hybrid drives in commercial vehicles*<br />

Hybrid drives in commercial vehicles: Our<br />

models in tests and in day-to-day<br />

operation*<br />

With 1,500 Orion VII HybriDrive city buses already on the road in North America, 460 pending delivery, and new<br />

orders of 1,100 units, Orion has received 2,600 orders since the launch of the Orion hybrid bus in 2003. That<br />

makes <strong>Daimler</strong> Buses the world's leading supplier of hybrid buses worldwide.<br />

The Mitsubishi Fuso Aero low-floor hybrid buses are already in regular service in three Japanese cities. At the end<br />

of September 2007, Mitsubishi Fuso presented the second generation under the name Aero Star Eco Hybrid.<br />

<strong>Daimler</strong> Buses is implementing a technologically pioneering hybrid system in the low-floor Citaro G BlueTec<br />

Hybrid articulated bus. Rather than providing continuous driving power, the bus’s diesel engine operates as a<br />

generator to produce electrical power when required. The electrical power is stored in lithium-ion batteries<br />

mounted on the roof of the Citaro. In addition, the energy recovered from braking is stored in the batteries as<br />

well. The actual drive power to the wheels of the bus is provided <strong>by</strong> four electric wheel hub motors on the center<br />

and rear axles of the vehicle. The energy recovered from braking when approaching bus stops or red lights is<br />

used to start up the vehicle again and to supply the bus with power when it is stationary. As a result, the hybrid<br />

bus can run solely on electricity and therefore operate almost emission-free and with far less noise when it is<br />

stationary, waiting at bus stops, or accelerating. The aim of this innovation is to allow the Citaro G BlueTec<br />

Hybrid to cover almost half of its demanding inner-city route while running solely on electricity and without<br />

switching on its diesel engine. Depending on how the vehicle is used, the developers expect the Citaro G BlueTec<br />

Hybrid to consume between about 20 and 30 percent less fuel than a conventional diesel-powered bus. The<br />

vehicle will make its regular-service debut with a customer later this year, and is scheduled to go into series<br />

production in 2009.<br />

A hybrid version of a Thomas Built school bus, the Saf-T-Liner C2 Hybrid, will be launched on the North American<br />

market in 2009.<br />

Short-radius distribution. Our development activities in this area focus on further reducing fuel consumption and<br />

drastically lowering emissions for vehicles that are used all over the world in inner-city areas with particularly<br />

limited access for traffic. Around 200 Mitsubishi Fuso Canter Eco Hybrid light trucks have rolled off the assembly<br />

line since the vehicle was first presented in summer 2006. <strong>This</strong> vehicle is the first light truck to comply with<br />

Japan’s stringent emissions standards. In addition, the truck is extremely fuel-efficient, consuming around 20<br />

percent less fuel than if it were equipped with a comparable diesel engine. The Canter Eco Hybrid achieves this<br />

high fuel efficiency <strong>by</strong> switching between operating modes, depending on the driving situation. The electric motor<br />

is used to get the truck moving, and the diesel engine kicks in during rapid acceleration. The diesel engine is also<br />

responsible for driving power when the truck rolls along at a steady rate.<br />

The Mercedes-Benz Atego BlueTec Hybrid 7.5 t introduced in 2007 is equipped with the same power train as the<br />

Fuso Eco Canter. In early 2008, two of these vehicles were transferred to the delivery company DHL for<br />

customer testing. The developers expect the truck to achieve fuel savings of up to 20 percent.<br />

The medium-duty Freightliner M2 Hybrid truck combines a compact Mercedes-Benz six-cylinder inline engine<br />

with an electric motor. The vehicle not only uses the drive system’s electric motor as an alternative or to<br />

complement the engine, but also as a power source for the accessory units. The system can achieve fuel savings<br />

of between 25 and 30 percent. Freightliner currently plans to produce 150 hybrid M2s this year, with series<br />

production commencing in 2009.<br />

The Mercedes-Benz Atego BlueTec Hybrid 12 t combines the electric motor from the Freightliner M2 with a<br />

Mercedes-Benz four-cylinder diesel engine.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety / Fuels for the future<br />

Fuels for the future: New fuels will replace<br />

fossil fuels<br />

High-quality and alternative fuels represent a further component in the effort to achieve an optimal<br />

environmental balance for the overall drive system. Our path to the fuel of the future will take us from clean<br />

conventional fuels to second-generation synthetic biofuels and the use of hydrogen to power fuel cell drive<br />

systems.<br />

Bioethanol and biodiesel as additives. The current practice of blending fossil fuels and crop-derived fuels such as<br />

ethanol and biodiesel is already helping to enhance the environmental balance sheet for road traffic. <strong>Daimler</strong> has<br />

committed itself to supporting activities that exploit the potential of biofuels more consistently than has<br />

previously been the case. More specifically, <strong>Daimler</strong> is committed to creating technologies which ensure that<br />

vehicles can run on fuels with up to 10 percent of biofuel admixtures. All of the gasoline engines in our current<br />

Mercedes-Benz and smart models are already suitable for operation with biogenic fuels containing up to 10<br />

percent ethanol (E10). Plans call for such fuels to be introduced in Germany in mid-2008. By far the majority of<br />

all older Mercedes-Benz and smart models can also run on E10 fuel. Excluded here are vehicles with firstgeneration<br />

four-cylinder gasoline direct injection engines from the years 2002–2005. Also excluded are models<br />

produced ex works without a three-way catalytic converter, or with a carburetor. These vehicles are generally<br />

more than 23 years old.<br />

Biomass-to-liquid (BTL) – the second, latest generation of biofuels. The testing of Mercedes-Benz diesel engines<br />

has shown that switching to synthetic fuels such as BTL would reduce particulate emissions <strong>by</strong> as much as 30<br />

percent and cut emissions of carbon monoxide and hydrocarbons <strong>by</strong> up to 90 percent. BTL fuels are<br />

manufactured through the gasification of all types of biogenic waste materials, which <strong>means</strong> that their<br />

production does not compete with food crop cultivation. BTL fuels can also be used with all current and future<br />

diesel engines without any need for retrofitting.<br />

<strong>Daimler</strong> and Volkswagen have been shareholders in CHOREN Industries GmbH in Freiberg, Germany, since<br />

October 2007. CHOREN is pursuing the market introduction of climate-friendly second-generation synthetic<br />

biofuels produced through gasification. CHOREN developed SunDiesel ® fuel, which has a high cetane number<br />

and thus delivers much better ignition performance than conventional diesel. SunDiesel ® is completely free of<br />

sulfur and aromatics and significantly reduces pollutant emissions. SunDiesel ® can also be used without any<br />

adjustment of existing infrastructure or engine systems, and the fuel is largely CO 2 -neutral as well. The<br />

environmental “balance sheet” of SunDiesel shows that, compared to conventional fuels, as much as 90 percent<br />

of CO 2 emissions can be prevented along the entire BTL value chain comprising cultivation, fuel production, and<br />

use. Mercedes-Benz intends to fill the tanks of all new diesel vehicles leaving its production plants with<br />

SunDiesel ® as soon as an adequate supply of the fuel is available.<br />

CHOREN commissioned the world’s first commercially operated BTL production facility in April 2008. When it<br />

reaches full capacity, the plant, which is located in the German state of Saxony, will produce 18 million liters of<br />

BTL fuel per year. That’s enough to fill the tanks of 15,000 passenger cars. A second facility with an annual<br />

capacity of 250 million liters is now being planned.<br />

Hydrogen – the fuel of the future. Before the fuel cell drive can be brought to market, progress has to be made<br />

regarding the production of hydrogen from renewable sources and the establishment of a suitable hydrogen<br />

supply infrastructure. Both of these tasks call for extensive cooperation between governments, the oil industry,<br />

the energy sector, and other potential investors. In order to promote such an effort, <strong>Daimler</strong> is taking part in the<br />

Clean Energy Partnership (CEP) in Europe.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety / Fuels for the future<br />

<strong>Daimler</strong>’s fuel road map<br />

<strong>Daimler</strong>’s fuel road map<br />

1. Conventional fuels such as gasoline and diesel will continue to be used in the years ahead, which is why they<br />

must be continually optimized. The goal here is the worldwide use of sulfur-free fuel that contains low levels of<br />

aromatic compounds.<br />

2.<strong>Daimler</strong> believes that CNG (compressed natural gas) is a viable option for certain applications, because it<br />

contains less carbon than gasoline or diesel.<br />

3. Beside BTL (biomass-to-liquid) fuels, GTL (gas-to-liquid) fuels are the cleanest and highest-quality fuels for<br />

diesel engines. <strong>This</strong> is because GTL diesel is free of sulfur and aromatic compounds – although not CO 2 -neutral –<br />

and can be adapted to meet many of the requirements associated with internal combustion engines.<br />

4. Hydrogen will power the fuel cell vehicles of the future. In the fuel cell, the hydrogen reacts with oxygen to<br />

form water. Global hydrogen requirements have until now been largely met through steam reformation from<br />

natural gas. However, since this process still gives rise to CO 2 emissions due to the carbon content of the gas,<br />

suitable economically viable processes for H2 production from renewable sources must be developed.<br />

5. Bioethanol and biodiesel are intelligent options for the short to medium term when blended with conventional<br />

fossil fuels. However, such crop-derived fuels have a lower energy content, so their fuel economy is not as<br />

favorable as that of fossil fuels. In addition, the aggressiveness and viscosity of biodiesel, and a more<br />

pronounced clogging of the particulate filter, make its use in pure form prohibitive in modern diesel automobiles.<br />

6. BTL fuels made from biomass will soon grow in importance, initially as an admixture blended with gasoline and<br />

diesel fuel. The Group is currently working on ways to further the development and use of largely CO 2 -neutral<br />

synthetic biofuels. These fuels represent the optimal use of biomass, contain no sulfur or aromatic compounds,<br />

and their production does not compete with the cultivation of food crops. In addition, they can be excellently<br />

matched to the requirements of internal combustion engines.<br />

7. The fuel of the future is hydrogen from renewable sources, which in combination with the fuel cell will<br />

guarantee mobility free of emissions and CO 2 . Suitable production processes involve electrolysis using electricity<br />

derived from renewable sources (hydroelectric, wind, solar, and geothermic power) or from the gasification of<br />

biomass.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Design for the environment<br />

Environmentally responsible product<br />

development<br />

The continual improvements made to the environmental compatibility of <strong>Daimler</strong> vehicles are now part of our<br />

development specifications. Serving as a cross-divisional team, the Group’s DfE (Design for Environment) experts<br />

are involved in all stages of the vehicle development process. Their job is to evaluate new component and vehicle<br />

concepts for future Mercedes-Benz passenger cars and commercial vehicles <strong>by</strong> developing overall lifecycle<br />

assessments.<br />

Environmentally responsible product development begins with the selection of suitable raw materials and ends<br />

with recycling-friendly design and production processes. These make it possible to reuse or recycle used<br />

components at a later stage. Thanks to efficient disassembly and recycling concepts, <strong>Daimler</strong> is forced to<br />

dispose of fewer and fewer parts from end-of-life passenger cars and commercial vehicles. Wherever possible,<br />

high-quality secondary (recycled) raw materials are used in place of expensive and precious primary resources. In<br />

the plastics sector, preference is given to recycled raw materials or recyclable materials. To date, the Group has<br />

successfully tested the use of recycled raw materials for approximately 10 percent of the volume of plastics<br />

employed in its vehicles. These materials have subsequently been approved for series production applications.<br />

Materials used in the C-Class station wagon according to VDA 231-106<br />

Environmentally responsible car development. In 2005 the Mercedes-Benz S-Class became the world’s first<br />

automobile to receive an environmental certificate. The certificate, which is issued <strong>by</strong> TÜV Management Service<br />

GmbH in Munich, was also granted to the new C-Class in 2007, there<strong>by</strong> confirming that the model was<br />

developed in line with high environmental standards. Compared to the previous version, the new C-Class station<br />

wagon model has made advances across the entire product lifecycle with regard to important aspects such as<br />

fuel consumption, exhaust emissions, and choice of materials.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety /<br />

Design for the environment<br />

Environmental profile of the new Mercedes-Benz C-Class station wagon<br />

Primary energy requirement. Calculations of the overall lifecycle of the new C-Class yield a primary energy<br />

consumption of approximately 746 gigajoules (GJ) – corresponding to the energy content of around 23,000 liters<br />

of premium gasoline and atmospheric emissions of approximately 50 tons of carbon dioxide (CO 2 ). In<br />

comparison to the predecessor model variant, savings amounting to 161 gigajoules (around 4,900 liters of<br />

gasoline) and approximately 12 tons of CO 2 have been achieved. The phase of utilization <strong>by</strong> the vehicle customer<br />

is the decisive factor in calculating CO 2 emissions and primary energy consumption, as this phase accounts for<br />

approximately 85 percent of these parameters.<br />

Emissions:<br />

Carbon dioxide: - 19 percent<br />

Oxides of nitrogen: - 26 percent<br />

Sulfur dioxide: - 5 percent<br />

Carbon monoxide: + 8 percent<br />

Volatile hydrocarbons: - 20 percent<br />

The higher figure for CO emissions in comparison with the predecessor model arises from the slight increase in<br />

emissions from driving operation; however, these still remain as much as 75 percent below both the currently<br />

valid Euro 4 and the future Euro 5 and Euro 6 European emission limits.<br />

Recycling. According to the ISO 22628 calculation model, 85 percent of the material from the new C-Class<br />

station wagon is recyclable and 95 percent is reusable.<br />

Material composition. Steel and iron account for 61 percent of the overall weight of the new C-Class.<br />

Recycled parts. In the new C-Class station wagon, a total of 39 components with a combined weight of 43.6<br />

kilograms can be manufactured with a share of high-quality recycled plastics. The mass of the components<br />

approved for this process has thus been increased <strong>by</strong> around 36 percent from the predecessor model.<br />

Renewable raw materials. A total of 32 components for the new C-Class station wagon with a total weight of 14<br />

kilograms are produced using renewable raw materials. The overall weight of the components made from natural<br />

materials has thus been reduced <strong>by</strong> some 26 percent in comparison to the previous model variant. <strong>This</strong><br />

development is mainly due to the use of plastic components in place of natural fibers for the door linings, which<br />

was necessitated <strong>by</strong> design considerations.<br />

Environmentally responsible car development. In 2005 the Mercedes-Benz S-Class became the world’s first<br />

automobile to receive an environmental certificate. The certificate, which is issued <strong>by</strong> TÜV Management Service<br />

GmbH in Munich, was also granted to the new C-Class in 2007, there<strong>by</strong> confirming that the model was<br />

developed in line with high environmental standards. Compared to the previous version, the new C-Class station<br />

wagon model has made advances across the entire product lifecycle with regard to important aspects such as<br />

fuel consumption, exhaust emissions, and choice of materials.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety / Safety<br />

Safety<br />

Vehicle safety is a central component of <strong>Daimler</strong>’s product strategy, and it’s also one of our core areas of<br />

expertise. No other manufacturer worldwide invests more in the development of life-saving driver assistance and<br />

safety systems. For more than 60 years, <strong>Daimler</strong>’s developments have led the way in vehicle safety for passenger<br />

cars, trucks, vans, and buses.<br />

<strong>Daimler</strong> regards its commitment to enhancing road safety as a responsibility toward society that is also in the<br />

interest of all road users. The Group is therefore committed to turning the “vision of accident-free driving” step<br />

<strong>by</strong> step into reality. These efforts will also serve to support the European Union’s goal to cut the number of road<br />

fatalities in half in the period between 2001 and 2010, despite drastically increasing traffic volumes.<br />

Mercedes-Benz' “integral safety philosophy” defines safety as a holistic goal whose achievement involves much<br />

more than successfully completing standardized crash tests. <strong>This</strong> philosophy focuses on four safety-critical<br />

phases:<br />

Safe driving: Avoiding danger, timely warnings, and assistance functions. Preventing accidents is the overriding<br />

goal of our safety philosophy – and systems like ESP® and the Brake Assist System BAS are already making an<br />

important contribution to enhanced traffic safety. Our Adaptive Brake Light system helps prevent rear-end<br />

collisions <strong>by</strong> blinking rapidly to warn drivers following behind when a vehicle in which the system is installed<br />

initiates an emergency braking maneuver. The Intelligent Light System incorporates five different lighting<br />

functions, which are configured for typical driving and weather conditions and provide the driver with a<br />

significantly longer range of visibility. The system thus helps to reduce the high risk of nighttime accidents in<br />

particular. Safety during night driving is also considerably enhanced with Night View Assist. The road ahead is<br />

optimally illuminated <strong>by</strong> infrared headlights, and the image is presented in the instrument cluster display. A<br />

further, newly developed assistance system from Mercedes-Benz provides even greater protection during lanechanging.<br />

The system recognizes when another vehicle is driving in a parallel lane of traffic in the exterior<br />

mirror’s “blind spot.” In such situations, the system alerts the driver first with a visual signal, and then<br />

additionally <strong>by</strong> <strong>means</strong> of an audible warning.<br />

Our safety strategy<br />

Hazardous situations: The PRE-SAFE® preventive occupant protection system. A major focus of our work<br />

involves creating synergy effects between active and passive safety systems. The key component of such<br />

networking for accident prevention goes <strong>by</strong> the name of PRE-SAFE®, a system that uses vehicle safety features<br />

such as ESP® and Brake Assist in combination with system sensors as a basis for registering an impending<br />

accident; it then optimally prepares the vehicle’s occupants for an impact: Electric actuators prepare the<br />

mechanical seat belt tensioners for deployment, the seat squab and backrest are brought into a position that<br />

ensures maximum safety, and the sliding roof and windows are closed. If a collision is avoided at the last<br />

moment, the vehicle can immediately continue driving normally, since all precautionary PRE-SAFE® measures<br />

are reversible. Mercedes-Benz has provided PRE-SAFE® in the new C-Class since its launch in 2007.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety / Safety<br />

When accidents happen: Occupant protection on multiple levels. In the development of safety systems,<br />

Mercedes-Benz is guided <strong>by</strong> data generated during 38 years of accident research; our objective is “real-life<br />

safety” – in other words, vehicle safety that is relevant to the everyday hazardous situations encountered in road<br />

traffic. Mercedes-Benz also carries out a large number of different crash tests that go far beyond meeting the<br />

requirements of legislation and ratings, in order to conduct differentiated analyses of various types of collision.<br />

Mercedes-Benz models have attained an exemplary degree of safety over the years, thanks to the development<br />

and introduction of the airbag, automated seatbelts, seatbelt tensioners, seatbelt force limiters, and many other<br />

innovations. Today, the new C-Class station wagon comes with seven airbags as standard equipment. The crashactive<br />

NECK-PRO head restraint is yet another special safety feature offered in the new C-Class and in many<br />

other Mercedes-Benz model series. Like other brand innovations, NECK-PRO’s development was also based on<br />

analysis of actual accidents. The system is equipped with sensors that register rear-end collisions of a predefined<br />

impact force, which is followed <strong>by</strong> the release of pre-tensioned springs in the headrests, causing the upholstery<br />

inside to shift forward and upward in just a few milliseconds, thus supporting the heads of the driver and front<br />

passenger in time to prevent injury.<br />

After an accident: Ensuring faster response <strong>by</strong> rescue personnel; preventing wake-effect collisions. <strong>This</strong> safety<br />

phase involves preventing even more damage or injury following an accident, and getting help to accident victims<br />

as quickly as possible. The sedan and station wagon versions of the new C-Class, for example, are equipped with<br />

a system that automatically cuts off the flow of fuel to the engine in the event of a serious accident. The same<br />

system also automatically engages the hazard lights to warn approaching vehicles and prevent further accidents.<br />

If the front airbags have inflated, the front windows will automatically open slightly in order to air out the interior.<br />

At the same time, the door locks will be released so that injured passengers can be rescued more quickly.<br />

Many systems introduced to the market <strong>by</strong> Mercedes- Benz have subsequently been adopted <strong>by</strong> other<br />

automakers. The resulting widespread use of these systems has helped to prevent many accidents, or to mitigate<br />

the effects of those that do occur, which has reduced costs to the overall economy as well. The innovative safety<br />

solutions from <strong>Daimler</strong> thus not only offer immediate advantages to the Group’s own customers; they also<br />

benefit society as a whole over the long term.<br />

At the beginning of 2007, Mercedes-Benz received the “Car of the Year Award” from the British magazine “What<br />

Car” for the brand’s pioneering safety achievements. That same year, Rodolfo Schöneburg, head of Passive<br />

Safety Development at Mercedes-Benz, was honored <strong>by</strong> the National Highway Traffic Safety Administration<br />

(NHTSA) in the U.S. for the outstanding contribution he has made to vehicle safety. These awards make it clear<br />

to us that we are on the right track as we move closer to attaining accident-free driving.<br />

Assistance systems for active safety


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety / Safety<br />

Commercial vehicles. According to experts, <strong>Daimler</strong> produces the world’s safest vehicles in its commercial<br />

vehicle market segments for trucks, buses, and vans. Nevertheless, safety technology will only be put to<br />

appropriate use <strong>by</strong> transport companies if it proves to be economical. High quality safety technologies, their<br />

universal application, and their economy thus constitute an integral whole that forms a key focus of <strong>Daimler</strong>’s<br />

activities as the world’s largest commercial vehicle manufacturer.<br />

Mercedes-Benz has already introduced pioneering driver assistance systems to the market that help drivers<br />

avoid accidents in critical situations, or minimize the severity of the consequences of accidents that do occur.<br />

More systems were added in 2006, including Adaptive Cruise Control and the Lane Assistant for touring buses.<br />

The Active Brake Assist system for the Mercedes-Benz Actros truck initiates an emergency braking manouver in<br />

the event. As passive safety measures for the protection of the driver and other road users, the company has<br />

also developed crash-optimized cabs, belt tensioners, front underride protection elements, and improved load<br />

securing systems for trucks.<br />

While safety technology must be controllable for drivers, it should not divest them of their responsibility for safe<br />

driving. Safety is thus not merely a question of technology but also of training: For 40 years, Mercedes-Benz has<br />

been offering training and driving safety courses for professional truck and bus drivers. Together with the<br />

German technical inspection association DEKRA, <strong>Daimler</strong> has also initiated a “Safety Plus” certification for vans<br />

and trucks. “Safety Plus” is awarded in two versions – one for the safety characteristics of the vehicle itself, the<br />

other for drivers with appropriate training. A number of insurance companies have acknowledged this measure<br />

<strong>by</strong> offering reduced premiums.<br />

<strong>Daimler</strong> was honored with several awards for its innovative safety technologies in 2007. The Mercedes-Benz<br />

Actros Safety Truck, for example, which is equipped with the Mercedes-Benz Brake Assist system, was chosen<br />

for the “Gelber Engel 2007” award presented <strong>by</strong> the German automotive association ADAC, and the “Safety<br />

Award 2007” issued <strong>by</strong> the Belgian Association of Motoring and Commercial Vehicle Journalists. In addition,<br />

Jürgen Trost, who developed the Active Brake Assist system for commercial vehicles, was awarded the European<br />

Safety Prize in 2007.<br />

Improved road safety, reduced fatalities, and increased economy – attaining these ambitious goals requires the<br />

concerted efforts of many sectors of society. As the leading producer of commercial vehicles, <strong>Daimler</strong> has taken<br />

the initiative and created the appropriate basis with active and passive safety technology. As a result, the trucks,<br />

vans, and buses produced <strong>by</strong> the Group demonstrate the high levels of safety that are already attainable today.<br />

The social responsibility as an automotive manufacturer. <strong>Daimler</strong> provides a wide range of services to encourage<br />

the responsible use of its products, there<strong>by</strong> promoting sustainable mobility solutions.<br />

Safe and environment-friendly driving. In training courses, <strong>Daimler</strong> demonstrates to its customers how they can<br />

make their own contribution to safe, environment- friendly vehicle use:<br />

� Mercedes-Benz passenger cars. Mercedes-Benz has been offering its customers driving safety courses for<br />

more than three decades. During this time, Mercedes-Benz personnel have trained customers in over 20<br />

countries. The driving programs are a significant element of our integrated safety philosophy, and they play<br />

an important role in accident prevention. The Group also began offering eco-training courses in environmentfriendly<br />

driving as early as 1995.<br />

� Commercial vehicles. The <strong>Daimler</strong> Trucks division has been providing training courses in economical driving<br />

and safety worldwide since the beginning of the 1990s. These courses have been attended <strong>by</strong> more than<br />

65,000 professional drivers from 50 countries each year, and this figure includes special package courses for<br />

entire shipping companies. In 2007 alone, a total of 800 bus drivers participated in safety training courses,<br />

while an additional 300 attended eco-training sessions. Customers who purchase a new Sprinter, Vito, or<br />

Viano van receive a coupon allowing them to take part in a special training course. In addition to teaching<br />

participants how to effectively use modern safety technology, the training also focuses on development of an<br />

economical and anticipatory driving style. In addition, the Group is certified as a trainer for advanced training<br />

courses for professional commercial vehicle drivers, which will be mandatory as of 2009.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety / Safety<br />

Road safety. Although vehicle safety is one of <strong>Daimler</strong>’s core competencies, the company has nevertheless<br />

adopted an approach that extends far beyond basic vehicle safety:<br />

� <strong>Daimler</strong> supports the European Road Assessment Programme (EuroRAP), which is setting out to make the<br />

entire road system safer – for example, <strong>by</strong> pointing out and eliminating accident hot-spots. EuroRAP has<br />

proved so successful that the number of participants has now risen from the four original countries to 20<br />

(including the U.S. and Australia).<br />

� By <strong>means</strong> of numerous programs and initiatives based on sound scientific principles (e.g. the Global Road<br />

Safety Partnership, MobileKids, Road Ready Teens, Seat Check, Mothers against Drunk Driving), <strong>Daimler</strong> also<br />

prepares children for safe conduct in traffic, enhances parental awareness of safety, and stages road safety<br />

campaigns for the general public.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety / Safety /<br />

Safety milestones at <strong>Daimler</strong>*<br />

Safety milestones at <strong>Daimler</strong>*<br />

For more than 60 years now, we have set milestones in the development of innovative safety systems for both<br />

cars and commercial vehicles. These milestones are listed in the following two overviews.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Innovation, development and safety / Safety /<br />

Emergency rescue and towing services*<br />

The <strong>Daimler</strong> service portals for rescue and<br />

towing services*<br />

Quick response times are a must during emergencies. That’s why we provide rescue services with detailed multilanguage<br />

information on our vehicles and safety systems. Since special knowledge is required for the quick and<br />

professional recovery and towing of commercial vehicles, we also provide multi-language guidelines for these<br />

services.<br />

� Information for rescue services<br />

� Recovery and towing of commercial vehicles<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Suppliers<br />

Suppliers<br />

<strong>Daimler</strong>’s aim of making production operations as environmentally compatible as possible is not restricted to its<br />

own production facilities, but also applies to materials and components purchased from suppliers. Special<br />

attention is paid in this respect to material selection criteria and recycling requirements. An integral focus of the<br />

discussions with top management from the supplier companies thus involves a joint effort to ensure<br />

environmentally compatible production processes that conserve resources. Many of our suppliers have been<br />

certified according to the ISO 14001 standard.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Logistics<br />

Logistics<br />

Vehicles that transport deliveries to and from production plants also have an environmental impact. <strong>Daimler</strong>’s<br />

goal in this area is to minimize the emissions they produce <strong>by</strong> ensuring the most efficient logistics systems<br />

possible – and the inclusion of railroad and ship transport. In 2007, approximately 4.4 million tons of<br />

commodities destined for production in <strong>Daimler</strong>’s German car and commercial vehicle plants, and at the Group’s<br />

facility in Vitoria, Spain, were transported <strong>by</strong> trucks over a total of 151 million kilometers (not counting door-todoor<br />

deliveries). Based on the current handbook on emission factors for road traffic (HBEFA 2.1), this translates<br />

into approximately 133,000 tons of CO 2 emitted into the atmosphere, which corresponds to around five percent<br />

of the total CO 2 emissions generated through production activities at all plants receiving such deliveries.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Production-related environmental strategy<br />

The production-related environmental<br />

strategy<br />

<strong>Daimler</strong> sees itself as a company that sets the pace for eco-compatible innovations in production and process<br />

engineering. In line with the third environmental guideline, the corporate goal is to make all stages of production<br />

as environmentally sound as possible. The main environmental fields of activity for the Group in the production<br />

sector are climate protection, air pollution prevention, and resource conservation. In concrete terms, this <strong>means</strong><br />

� reducing direct and indirect CO 2 emissions<br />

� reducing solvent emissions<br />

� raising resource efficiency and avoiding production of waste materials.<br />

In order to reach these goals, <strong>Daimler</strong> has established control processes that are embedded in the certified<br />

environmental management systems at its production plants. The production locations that have been certified<br />

according to the European EMAS system for environmental auditing publish certified annual environmental<br />

<strong>report</strong>s concerning their environmental policies, their targets and implementation measures, and their<br />

environmental data.<br />

Resource consumption, emissions and production waste are largely determined <strong>by</strong> production volume. For better<br />

comparison purposes, data is therefore collected on the specific figures for each vehicle produced.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Production-related environmental strategy<br />

Group-wide data on production-related environmental protection<br />

Total energy consumption GWh 10,746 10,185 - 5.2<br />

of which:<br />

electricity GWh 4,636 4,695 1.3<br />

natural gas GWh 4,505 4,168 - 7.5<br />

district heating GWh 1,055 923 - 12.5<br />

heating oil, LPG GWh 325 219 - 32.6<br />

coal GWh 225 180 - 19.9<br />

CO 2 emissions mill. t 3.885 3.782 - 2.7<br />

Emissions into the atmosphere<br />

Solvents (VOC) t 7.328 7.242 -1,2<br />

Sulfur dioxide (SO 2 ) t 59 51 - 13.0<br />

Carbon monoxide (CO) t 2,049 2,310 12.7<br />

Nitrogen oxides (NO X ) t 932 873 - 6.4<br />

Dust (total) t 203 257 27.1<br />

Waste volumes<br />

Waste for disposal 1,000 t 84 74 - 11.7<br />

Waste for reuse (without scrap metal) 1,000 t 195 199 2.1<br />

Scrap metal for reuse 1,000 t 768 801 4.4<br />

Hazardous waste for disposal 1,000 t 26 21 - 18.9<br />

Hazardous waste for reuse 1,000 t 84 70 - 16.1<br />

Water consumption<br />

Drinking water (externally supplied) mill. m3 8.78 8.99 2.4<br />

Well water (derived on site) mill. m3 5.32 5.56 4.5<br />

Surface water mill. m3 0.64 0.64 0.1<br />

Costs related to environmental protection<br />

2006 2007 Change in %<br />

Investments € mill. 57 85 50.5<br />

Current expenditure € mill. 452 434 - 4.0<br />

R&D expenditure € mill. 1,187 1,418 19.4<br />

Some of the input data was incorrectly calculated and had to be corrected following the printed <strong>report</strong>'s editorial deadline.<br />

<strong>This</strong> data will therefore deviate from that found in the printed <strong>report</strong>.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Production-related environmental strategy /<br />

Overview of data*<br />

Overview of Data Related to Environmental<br />

Protection in Production*<br />

The following overview provides the most important details according to production-related environmental<br />

protection measures, in the form of timeline diagrams covering periods of up to 16 years. In addition, our Quick<br />

Analyzer (Environmental Data - Quick Analyser respectively Specific Environmental Data - Quick Analyser) will<br />

enable you to compile data from the last six years, in a targeted manner and in accordance with your specific<br />

needs. <strong>This</strong> data can be issued in graphic or table form, or downloaded as an Excel file.<br />

Energy consumption Specific energy consumption<br />

Greenhouse gas emissions Specific carbon dioxide emissions


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Production-related environmental strategy /<br />

Overview of data*<br />

Solvent emissions Specific solvent emissions<br />

Sulfur dioxide emissions Nitrogen oxide emissions<br />

Carbon monoxide emissions Dust emissions


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Production-related environmental strategy /<br />

Overview of data*<br />

Water consumption Specific water consumption<br />

Wastewater Waste<br />

Waste – scrap metal for reuse Specific waste disposal


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Production-related environmental strategy /<br />

Overview of data*<br />

Specific hazardous waste disposal Investments related to environmental protection<br />

Expenditure related to environmental protection R&D expenditure related to environmental<br />

* Content on this page is available exclusively on the Internet.<br />

protection


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Production-related environmental strategy /<br />

Environmental management*<br />

Environmental management*<br />

EMAS<br />

In addition to obtaining ISO 14001 certification of their environmental management systems, all <strong>Daimler</strong> AG<br />

production locations in Germany, the EvoBus GmbH plants in Neu-Ulm and Mannheim, and the smart production<br />

facility in Hambach, France, voluntarily participate in the European Eco-Management and Audit Scheme (EMAS).<br />

The environmental statements released <strong>by</strong> the production locations are validated <strong>by</strong> independent experts and<br />

contain all important environmental data, goals, and measures (and their state of implementation) for the facility<br />

in question.<br />

These statements are put together and released to the public every three years. In the interim, so-called updated<br />

environmental statements are provided that include annual environmental statistics, <strong>report</strong>s on the<br />

implementation of the environmental program, and any changes that may have been made to the environmental<br />

management system.<br />

The environmental statements are released at different times <strong>by</strong> the various locations. You will find the plants'<br />

latest environmental statements on this page. Please note that this information is only available in German.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Production-related environmental strategy /<br />

Environmental data collection*<br />

Environmental data collection*<br />

Since resource consumption and emissions depend on the production volume, we calculated specific values for<br />

the individual divisions. To do so, we used the number of vehicles produced <strong>by</strong> a division in conjunction with the<br />

corresponding data from the production plants. Following the reorganization of the commercial vehicle units, the<br />

specific values of the Truck Group, Vans and Buses were calculated separately. To generate consistent time<br />

series, this distribution was also used, as far as possible, to calculate past values.<br />

The specific data generated <strong>by</strong> this <strong>means</strong> can only serve as a general guideline because it does not take into<br />

account differences in the development of vertical integration, product diversity, and the distinctive features of<br />

the production network, which partially extends across several divisions.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Energy and climate protection<br />

Energy and climate protection<br />

Direct and indirect CO 2 emissions from production<br />

To reduce energy consumption at its plants, and thus CO 2 emissions, <strong>Daimler</strong> employs a dual approach that calls<br />

not only for ensuring the most environmentally sound energy supply processes possible for the production<br />

plants, but also efficient use of energy in production. The Group’s production locations are heated with natural<br />

gas, which is a low-carbon energy carrier, for example, and one plant uses shredded waste wood to achieve<br />

nearly CO 2 - free heating. Coke is used only where technologically necessary, which <strong>means</strong> for smelting cast iron.<br />

Many production plants are supplied with heat and power <strong>by</strong> highly efficient cogeneration plants operated either<br />

<strong>by</strong> <strong>Daimler</strong> or <strong>by</strong> regional power companies. For its new construction, expansion, and modernization projects,<br />

<strong>Daimler</strong> makes use of innovative low-CO 2 energy supply concepts and electricity generated from renewable<br />

sources. A new photovoltaic system at the Gaggenau plant, for instance, and existing photovoltaic facilities in<br />

Bad Cannstatt (Untertürkheim) and Sindelfingen (MTC Design building) regeneratively produced nearly 900<br />

megawatt-hours of electricity in 2007.<br />

<strong>Daimler</strong>’s worldwide energy consumption totaled 10.2 million megawatt-hours in 2007, a decrease of 5.2<br />

percent from the previous year. Along with generally mild weather, this reduction was mainly due to<br />

improvements in energy efficiency brought about <strong>by</strong> many energy-saving projects at our production plants. One<br />

outstanding example of our energy-saving achievements is offered <strong>by</strong> our Untertürkheim plant. Here, a facilitywide<br />

interdisciplinary project team set itself the goal of exploiting all possibilities for reducing energy<br />

consumption in areas as diverse as machine and facility planning, production infrastructure, and building<br />

systems, while also addressing the impact of employee behavior on energy use. The team approved and<br />

implemented a wide range of measures that proved very successful:<br />

� Raising the temperature of cooling lubricants cut the annual electricity consumption of refrigeration<br />

machinery <strong>by</strong> 15,000 megawatt-hours, without any detrimental effect on production quality. <strong>This</strong> same<br />

measure also significantly reduced cooling-water consumption.<br />

� Optimization of heat recovery equipment <strong>by</strong> <strong>means</strong> of improved controls, adjustments in line with<br />

requirements, and use of alternative heat sources led to annual heat energy savings of 11,000<br />

megawatthours. Current plans call for further heat recovery savings totaling 18,000 megawatt-hours.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Energy and climate protection<br />

� Another very successful measure involved a reduction of suction flow volumes in processing machines with<br />

the help of computer-based simulation calculations. The optimizations achieved here lowered such flow<br />

volumes <strong>by</strong> 20–30 percent, saving 30,000 megawatt-hours of energy.<br />

� Ventilation at one production hall was adjusted to conform to actual needs <strong>by</strong> using a more efficient<br />

ventilation system and new electronically controlled motors. <strong>This</strong> resulted in annual savings of 1,200<br />

megawatt-hours of electricity and 3,800 megawatthours of heat.<br />

� A key administrative measure was a synchronization of ventilation and lighting with actual production times,<br />

using an operating-time system. <strong>This</strong> led to annual savings of 21,000 megawatt-hours of electricity and<br />

27,000 megawatt-hours of heat.<br />

� Increased employee awareness of the need to conserve energy also yielded savings, with Intranet campaigns<br />

and posters and flyers sensitizing employees and encouraging them to get involved.<br />

� A newly introduced sticker identifies “disengageable machines,” making staff more aware of equipment that<br />

can be completely shut down when not being used for production.<br />

Specific CO 2 emissions from production<br />

Altogether, in 2007 the energy efficiency project in Untertürkheim reduced electricity consumption <strong>by</strong> 51,700<br />

megawatt-hours and heat consumption <strong>by</strong> 130,200 megawatt-hours compared to the reference year of 2005.<br />

The project also cut water consumption <strong>by</strong> 500,000 cubic meters. In recognition of these accomplishments, the<br />

project team was presented with <strong>Daimler</strong>’s Environmental Leadership Award (ELA) in November 2007.<br />

CO 2 emissions. Total energy-related CO 2 emissions at all plants decreased <strong>by</strong> 2.7 percent to 3.78 million tons in<br />

2007 (see chart above). The lower decline in emissions compared to energy consumption was due to the fact<br />

that particularly high savings were achieved in the areas of fuels and district heating requirements, while<br />

consumption of electrical energy, which accounts for a high proportion of indirect CO 2 emissions, rose slightly.<br />

The graph above left, which shows CO 2 emissions from production plants in relation to the number of vehicles<br />

produced, makes it clear that energy-saving projects at the Mercedes-Benz Cars were already beginning to have<br />

an impact in the second year of implementation. Thanks to new and efficient production equipment and a sharp<br />

increase in production, the Group’s “Vans, Buses, Other” segment once again recorded lower specific CO 2<br />

emissions than in the prior year. At the same time, the specific CO 2 figures for <strong>Daimler</strong> Trucks rose due to the<br />

decline in production at that division.<br />

Emissions of other greenhouse gases, such as coolants, are negligible. The greenhouse effect resulting from such<br />

gases is less than one one-thousandth of the total figure for greenhouse gas emissions generated <strong>by</strong> <strong>Daimler</strong>.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Energy and climate protection /<br />

Successful energy savings projects*<br />

Successful energy savings projects at<br />

individual facilities*<br />

Saving energy was a top priority at many of our plants last year. The plant in Rastatt, for example, initiated more<br />

than 250 individual measures, which together resulted in annual savings of 12,000 megawatt-hours of electricity<br />

and 16,000 megawatt-hours of heat. The facility also managed to cut down substantially on the amount of<br />

demineralized water. The factors that contributed to this success included an automated control system for<br />

ensuring that ventilation, air conditioning, and lighting were only used when actually needed. Additional savings<br />

were generated <strong>by</strong> a temperature- and humidity-dependent control system for recovering heat from the paint<br />

booths as well as <strong>by</strong> a new heat recovery system for the exhaust from driers. Due to these improvements, the<br />

Rastatt plant was one of the finalists in the 2007 Environmental Leadership Awards competition.<br />

The plant in Sindelfingen managed to improve its energy efficiency considerably in 2006 compared to the prior<br />

year, saving 12,400 megawatt-hours of electricity and 17,600 megawatt-hours of heat in the process. The<br />

measures that contributed to this success included an optimized lighting control system, a concept for ensuring<br />

that energy supply on weekends was better attuned to the actual needs of maintenance work, as well as more<br />

energy-efficient operation of the painting facilities.<br />

In 2007, the energy-saving measures focused on optimized operation of the ventilation systems. Huge heat<br />

savings of over 15,000 megawatt-hours per year were achieved <strong>by</strong> improving existing measurement and control<br />

systems, some of them at older facilities. In addition, a heat recovery facility was commissioned for the air<br />

compressor. The facility supplies more than 6,000 megawatt-hours of recovered heat each year to ventilation<br />

systems at two building complexes. The plant also further improved the paint shop’s weekend-mode control<br />

processes in 2007. By <strong>means</strong> of consistent energy management at the drying ovens, an additional 20,000<br />

megawatt-hours of heating energy were saved compared to the previous year.<br />

Two new heat recovery systems were built in the Bremen plant that save as much as 24,000 megawatt-hours of<br />

heating energy per year.<br />

In late 2007, the Kreditanstalt für Wiederauf (Reconstruction Credit Institute) — or KfW for short — presented its<br />

energy efficiency prize to three companies in recognition of exemplary energy-saving initiatives they had<br />

introduced. The EvoBus GmbH plant in Neu-Ulm took the second place prize for reducing an assembly hall’s<br />

heating energy consumption <strong>by</strong> 23 percent. The decisive factors behind this success were the channeling of<br />

residual heat from compressors into ceiling-mounted radiators, as well as airlocks, fast-closing gates for<br />

preventing heat loss, and optimized control technology.<br />

The modern Mercedes Technology Center (MTC) in Sindelfingen consumes a large amount of electricity for air<br />

conditioning and office lighting. Thanks to detailed recording of the consumption and an electronic building<br />

management system, it was possible to achieve the considerable energy savings of 14,000 megawatt-hours per<br />

year.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Energy and climate protection /<br />

Computation of CO 2 Emissions*<br />

Computation of CO2 Emissions*<br />

CO 2 emission values are calculated and presented in accordance with the standard of the GHG Protocol<br />

Initiative. ("A Corporate Accounting and Reporting Standard," rev. Edition, 2004, www.ghgprotocol.org). The<br />

organizational perspective includes all relevant majority holdings in their entirety (control approach), while the<br />

operational perspective takes into account all direct CO 2 emissions from stationary sources (Scope 1), as well as<br />

indirect emissions resulting from the generation of purchased electricity (Scope 2) and district heating.<br />

The emission factors utilized have in some cases been updated or adjusted in accordance with regional<br />

differences.<br />

Direct emissions from the combustion of heating oil, gas, and liquefied gas are calculated using fixed factors<br />

(WBCSD or DEHSt). With regard to coal, the factors that are employed in the calculation vary between Germany<br />

and the U.S.<br />

Indirect emissions resulting from the use of district heating and electricity are differentiated according to time<br />

and region when calculated with the GHG Protocol Initiative factors, provided more precise data is not available.<br />

The time axis of the German Heat and Power Association (AGFW) is used for the calculation of emissions from<br />

district heating in Germany, while the Institute for Applied Ecology's time axis is employed for calculating<br />

emissions from electricity production.<br />

In the U.S., the factors related to electricity production published <strong>by</strong> the EPA are applied to each individual state.<br />

In order to maintain a consistent time axis, these calculations are repeated each year for every industrial facility,<br />

even though this can result in differences between new figures and previously published data.<br />

Emissions of greenhouse gases other than CO 2 can not be calculated across the Group at this time. Calculations<br />

regarding climate-relevant coolants used at German plants do, however, reveal only a negligible portion in the<br />

parts per thousand range.<br />

Other indirect (Scope 3) CO 2 emissions stemming from the product utilization phase are expressed as specific<br />

vehicle emissions.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Air pollution control<br />

Air pollution control<br />

Production processes employed at <strong>Daimler</strong> plants lead to the creation of several air pollutants, most notably in<br />

the form of solvents (VOC) that are released from the paint shops. Other pollutants, such as sulfur dioxide (SO2),<br />

carbon monoxide (CO), nitrogen oxides (NO x ), and dust, are produced primarily through combustion processes in<br />

furnaces and at engine test beds. It remains the company’s goal to maintain the low level of emissions achieved<br />

in recent years, and to reduce emissions even further wherever this is technically and economically possible.<br />

Specific emissions of solvents<br />

The introduction of water-based paints had already reduced solvent emissions <strong>by</strong> some 70 percent at the<br />

passenger car production plants as early as the 1990s. In the year under review, solvent emissions per<br />

manufactured vehicle increased <strong>by</strong> 2.8 percent at <strong>Daimler</strong> Trucks plants and <strong>by</strong> 3.0 percent at plants operated<br />

<strong>by</strong> Mercedes-Benz Cars compared to the prior year. Such increases are technically related to new production<br />

launches and remain within normal annual fluctuation corridors. Further efforts to reduce solvent emissions will<br />

need to be made at commercial vehicle production locations especially. Several projects, such as the one<br />

involving UV hardening in the axle paint shop at the Mercedes-Benz plant in Gaggenau, have already been<br />

initiated to this end.<br />

Additional data on air pollution control can be found here.<br />

Some of the input data was incorrectly calculated and had to be corrected following the printed <strong>report</strong>'s editorial deadline.<br />

<strong>This</strong> data will therefore deviate from that found in the printed <strong>report</strong>.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Waste prevention and recycling<br />

Waste prevention and recycling<br />

Waste Waste – Scrap metal for reuse<br />

When it comes to waste management, <strong>Daimler</strong> believes that prevention and recycling are better than disposal.<br />

Accordingly, the reconditioning and reuse of raw, process, and operating materials has been standard practice at<br />

the Group for many years now. Moreover, innovative technologies and eco-friendly production planning<br />

processes are used in order to avoid the creation of waste from the outset.<br />

Total waste resulting from production-related activities in 2007 amounted to 1.166 million tons, which was<br />

roughly the same level as in the previous year. Of this total, 69 percent consisted of almost completely recycled<br />

scrap metal, 24 percent was industrial waste (72 percent of which was recycled), and 8 percent was hazardous<br />

waste (78 percent of which was recycled). The substantial increase in the percentage of waste that was recycled<br />

as compared to the previous year resulted primarily from a decline in the share of the total waste (both<br />

hazardous and non-hazardous) that had to be disposed of.<br />

Additional data on waste prevention and recycling can be found here.<br />

Some of the input data was incorrectly calculated and had to be corrected following the printed <strong>report</strong>'s editorial deadline.<br />

<strong>This</strong> data will therefore deviate from that found in the printed <strong>report</strong>.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Water protection<br />

Water protection<br />

<strong>Daimler</strong>’s aim in terms of water protection is to use this precious commodity as sparingly as possible and to<br />

avoid contaminating water resources. In order to conserve water, resource-efficient techniques such as closedloop<br />

systems are used. As a result, the specific water consumption per vehicle built at <strong>Daimler</strong> has fallen<br />

dramatically in recent years.<br />

Water protection<br />

In 2007, <strong>Daimler</strong> consumed 15.2 million cubic meters of water. Compared with the previous year (14.7 million<br />

cubic meters), this represents an increase in consumption of approximately 3 percent, which was largely due to<br />

new production launches.<br />

Most of the production plants do not channel their wastewater into rivers, but instead into local water treatment<br />

plants through the public sewer system. However, because of the multitude of possible materials contained in<br />

wastewater and the differences between local regulations, <strong>Daimler</strong> does not comprehensively document the<br />

relevant statistics. Detailed local figures can, however, be found in the environmental <strong>report</strong>s of the various<br />

production plants.<br />

Additional data on water consumption can be found here.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Soil conservation and remediation<br />

Soil conservation and remediation<br />

Keeping soil and groundwater clean is one of the most important aspects of environmental protection at <strong>Daimler</strong>.<br />

The primary goal in this area is to prevent any contamination from the outset. Technical equipment such as<br />

catchment trays, double-walled containers, sealed floor coverings, and leakage warning systems help prevent<br />

water-polluting fluids from leaking into the ground. Because legal stipulations vary greatly worldwide, the Group<br />

has put together internal guidelines that will establish minimum standards for soil and groundwater protection at<br />

all of its facilities around the globe.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Production / Noise abatement<br />

Noise abatement<br />

<strong>Daimler</strong> has set itself the aim of reducing as far as possible the noise levels to which its employees and the<br />

neighbors of its production locations are subjected. When planning new facilities, the Group’s noise abatement<br />

concepts ensure that noise is prevented to the greatest extent possible. Sound sources and levels at Group<br />

production sites are also closely monitored and reduced where possible <strong>by</strong> the installation of sound-absorbing<br />

elements and noise abatement walls, for example..


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Sales and dealerships<br />

Sales and dealerships<br />

Environmental protection activities at sales outlets are also based on the <strong>Daimler</strong> Group’s Environmental<br />

Guidelines. Within this strategic framework, the Mercedes- Benz German Sales Organization (MBVD) has its own<br />

environmental policy, which it pursues with great commitment, practicing proactive environmental protection at<br />

its Berlin headquarters, company-owned sales and service outlets, and dealerships. As part of the MBVD<br />

environmental policy, company-owned sales and service outlets set their own local environmental targets and<br />

determine the activities required to reach them. A total of 20 MBVD centers with 54 outlets, as well as the<br />

organization’s headquarters in Berlin, have already had their operations officially certified in line with the<br />

European Eco-Management and Audit Scheme (EMAS).


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use /<br />

Fuel consumption and CO 2 emissions<br />

Fuel consumption and CO 2 emissions<br />

The Group has already made substantial progress in reducing fuel consumption and CO 2 emissions in both its<br />

passenger cars and commercial vehicles through continual optimization of the internal combustion engine.<br />

Fuel consumption in Germany 1990 – 2007<br />

Reduced fleet consumption. <strong>Daimler</strong> has reduced the average fuel consumption of its fleet of newly registered<br />

passenger cars and station wagons in Germany <strong>by</strong> 32 percent since 1990. In 2007, fleet consumption also<br />

declined 3 percent compared with the previous year, to 7.0 liters per 100 kilometers. Average CO 2 emissions fell<br />

to 174 grams per kilometer.<br />

Development of CO 2 emissions for the European <strong>Daimler</strong> fleet (average) 1995 – 2007<br />

CO 2 emissions of <strong>Daimler</strong>’s fleet in Europe have fallen <strong>by</strong> 21 percent since 1995; this reduction is nearly 50<br />

percent higher than the average decrease for all European manufacturers. Overall average CO 2 fleet emissions in<br />

Europe totaled 181 grams per kilometer in 2007 (Mercedes-Benz Cars, including vans).<br />

These savings were made possible for example <strong>by</strong> the introduction and refinement of CDI diesel technology and<br />

of second-generation gasoline direct injection, <strong>by</strong> downsizing concepts with superchargers, and <strong>by</strong> the sevenspeed<br />

automatic transmission 7G-TRONIC.<br />

Reasons for the specific reduction in 2007 included the launch of the new C-Class, which boasted significantly<br />

better fuel economy than the predecessor model, and the launch of the new smart fortwo. The measures and<br />

technologies described in Chapter "Sustainable mobility strategy and implementation for passenger cars" will<br />

help us further reduce the fuel consumption and CO 2 emissions of our fleet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use /<br />

Fuel consumption and CO 2 emissions<br />

<strong>Daimler</strong> CAFE* values for passenger cars and light trucks 1996 – 2007 in the U.S.<br />

In the U.S., the Corporate Average Fuel Economy (CAFE) standards set the legal framework for improving energy<br />

efficiency. According to these standards, manufacturers’ passenger car fleets are weighted in line with sales. For<br />

model year 2008, they must have average values below 8.6 liters per 100 kilometers (27.5 miles per gallon) for<br />

cars, and 10.6 liters per 100 kilometers (22.2 miles per gallon) for light trucks. Standards for both passenger<br />

cars and light trucks have been tightened in the U.S. in recent years. As a result, the requirements will gradually<br />

be increased in the period between 2011 and 2020 to an average of 6.7 liters per 100 kilometers (35 miles per<br />

gallon).<br />

Average fuel economy for each model year is determined <strong>by</strong> the number of vehicles sold and the fuel economy<br />

value for each. Manufacturers that fail to achieve the set economy value must pay US $5.50 per every 0.1 miles<br />

per gallon they fall below the standard. Last year, the Group thus had to pay penalties totaling US $30.3 million<br />

for slightly more than 200,000 Mercedes vehicles imported into the U.S. <strong>by</strong> Mercedes-Benz in 2006, due to the<br />

fall in the number of FlexFuel vehicles in connection with model realignment measures.<br />

In Japan the “Top Runner” concept has fixed binding upper limits for fuel consumption from 2010 on for nine<br />

passenger car classes grouped according to gross vehicle weight. <strong>This</strong> standard will be extended to 16 car<br />

classes in 2015. The targets for 2010 have already been achieved in two vehicle classes.<br />

With long-distance trucks like the Mercedes-Benz Actros, <strong>Daimler</strong> has been leading the field for years in terms of<br />

fuel economy. Refined and even more efficient engines, improvements to tires and aerodynamic properties,<br />

variable axle drive ratios, and the introduction of BLUETEC technology have all led to substantial reductions in<br />

the fuel consumption of our commercial vehicles over the last few years. Orion VII hybrid buses, for example,<br />

consume up to 45 percent less fuel than conventional diesel buses, while the Mitsubishi Fuso Canter Eco Hybrid<br />

consumes 20 percent less fuel than a conventional truck.<br />

Impact of driving style on fuel consumption. Studies have shown that when a driver tries to anticipate events and<br />

drives with economy in mind, he or she can achieve fuel savings of as much as 10 percent over the long term.<br />

Exploiting such savings potential is the goal of the eco-training courses offered <strong>by</strong> Mercedes-Benz to drivers of<br />

both passenger cars and commercial vehicles.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use /<br />

Fuel consumption and CO 2 emissions / The EU draft for CO 2 regulation*<br />

The EU draft for CO 2 regulation*<br />

EU proposal for limiting mean CO 2 emissions of the European new car fleet to 130 g/km<br />

In February 2007, the EU Commission presented a strategy paper that calls for the CO 2 emissions of new cars<br />

from all manufacturers in Europe to be reduced through appropriate vehicle measures to an average of<br />

130 grams per kilometer <strong>by</strong> 2012. A further reduction of 10 grams is to be achieved <strong>by</strong> additional measures such<br />

as improving the efficiency of vehicle components (for example, tires) and a gradual transition to fuels containing<br />

less carbon. In December 2007, the EU Commission published the draft proposal for reducing CO 2 emissions<br />

from passenger cars and light trucks. The legislation process is expected to be completed <strong>by</strong> 2009 at the latest,<br />

after which the regulation will apply in every EU member state.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use /<br />

Fuel consumption and CO 2 emissions / CAFE standards in the U.S.*<br />

CAFE standards in the U.S.*<br />

CAFE standards for passenger cars and light commercial vehicles in the U.S<br />

In December 2007, U.S. Congress resolved legislation prescribing a CAFE figure for passenger cars and light<br />

commercial vehicles (mean value for all manufacturers) of 6.7 liters/100 km (35 miles per gallon) for model year<br />

2020. Separate fleet goals will come into effect for passenger cars and for light commercial vehicles, defined on<br />

the basis of specific criteria. The government’s plans provide for categorization according to a vehicle’s<br />

“footprint” (wheelbase x mean track width).<br />

In April 2008, the National Highway Traffic Safety Administration (NHTSA) published a legislative draft that<br />

implemented the Congress figure from December 2007 and nominated CAFE values for model years 2011 to<br />

2015; this draft provides for mean CAFE values for all manufactures of 6.6 liters/100 km (35.7 mpg) for<br />

passenger cars and 8.2 liters/100 km (28.6 mpg) for light commercial vehicles of model year 2015. The<br />

regulations are to be definitively resolved <strong>by</strong> April 1, 2009.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use /<br />

Fuel consumption and CO 2 emissions / Eco-training courses*<br />

Environmentally conscious driving: Our Eco<br />

training courses*<br />

People who drive in a fuel-saving manner contribute to environmental protection and save money. <strong>This</strong> applies to<br />

drivers of cars as well as of buses and trucks. Our Eco driver training courses will teach you how to effectively<br />

reduce your vehicle's fuel consumption without having to lengthen your journey.<br />

� Eco training course for car drivers.<br />

� Eco training course for truck drivers.<br />

� OMNIplus EcoTraining for bus customers.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use / Airborne emissions<br />

Airborne emissions<br />

Besides carbon dioxide and water vapor, automobile exhaust emissions include carbon monoxide (CO), nitrogen<br />

oxides (NOx), and hydrocarbons (HC). Diesel vehicles have the same emissions plus particulates. Vehicle<br />

emissions have a significant impact on air quality, especially in cities with heavy traffic.<br />

In recent years, <strong>Daimler</strong> has significantly reduced the various types of emissions across its entire passengercar<br />

range with the help of improved engine designs and highly efficient emission control systems. Since 1995, for<br />

example, NOx emissions have been cut <strong>by</strong> about 70 percent and diesel particulate emissions <strong>by</strong> more than 95<br />

percent. Over the course of the past decade, the Group has also succeeded in dramatically reducing emissions of<br />

nitrogen oxides, hydrocarbons, and particulates in its commercial vehicles <strong>by</strong> improving the control of<br />

combustion processes in engines, and <strong>by</strong> optimizing carburation. The aim now is to apply state-of-the-art<br />

technologies to achieve further reductions and thus be able to comply as far in advance as possible with future<br />

emission limits in Europe, Asia, and the U.S.<br />

Low-emission passenger cars. The EU regulation governing the Euro 5 and 6 emission limits went into effect in<br />

July 2007. The Euro 5 standard will become valid for new models on September 1, 2009 and for all commercial<br />

vehicles and January 1, 2011, and will have more stringent particulate and NOx limits for new passenger cars and<br />

vans. Euro 6, which sets significantly lower limits for NOx emissions from diesel vehicles, will come into force for<br />

new models on September 1, 2014 and for all commercial vehicles on September 1, 2015.<br />

In order to combine all technical solutions for reducing diesel engine emissions into a sensible package, <strong>Daimler</strong><br />

is implementing a multi-staged plan that includes the following points:<br />

� Optimized engine and combustion processes reduce raw emissions to the greatest extent possible. <strong>This</strong><br />

includes the use of electronic engine control systems, four-valve technology, third-generation common-rail<br />

direct injection with piezo injectors, turbocharging with variable geometry, and exhaust gas recirculation<br />

systems.<br />

� Oxidizing catalytic converters minimize emissions of carbon monoxide (CO) and uncombusted hydrocarbons<br />

(HC).<br />

� Diesel particulate filters reduce particulate emissions <strong>by</strong> up to 98 percent. As a result, such emissions are<br />

significantly lower than the current Euro 4 particulate limits and already meet the Euro 5 and Euro 6 limits.<br />

The currently valid emission standards in the U.S. are also met in combination with the BLUETEC exhaust<br />

treatment system. Since the summer of 2005, all Mercedes-Benz diesel passenger cars sold in Germany,<br />

Austria, Switzerland, and the Netherlands have been equipped with particulate filters as standard. In<br />

addition, Mercedes-Benz now offers maintenance-free retrofitting systems for reducing particulate emissions<br />

in all A-, C-, and EClass models with four-cylinder diesel engines, and in M-Class models with five-cylinder<br />

diesel engines. We also offer retrofitting solutions for nearly all CDI models in cooperation with partners.<br />

The new smart fortwo cdi already complies with legal requirements (Euro 4), even without a diesel particulate<br />

filter. In addition, the smart fortwo cdi is being equipped with a diesel particulate filter (open system) as standard<br />

in Germany, Italy, and Switzerland. Starting in 2008, the fortwo cdi will also be offered with a closed system,<br />

whose incorporation into the engine control system basically permits an even higher reduction of particulates in<br />

the exhaust than an open particulate filter system.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use / Airborne emissions<br />

Percentage share of Mercedes-Benz and smart diesel passenger cars sold in Europe in 2007 that meet<br />

mandatory and planned emissions standards<br />

CO<br />

in g/km<br />

HC NOx<br />

in g/km<br />

Limit values<br />

NOx<br />

in g/km<br />

Particulates<br />

in g/km<br />

Percentage share of Mercedes-<br />

Benz and smart diesel<br />

passenger cars that meet<br />

the respective limit values<br />

Euro 4 0.50 0.25 0.30 0.025 91 percent<br />

Euro 5 1 0.50 0.18 0.23 0.005 9 percent<br />

1 The Euro 5 limits are binding for all new vehicles as of January 1, 2011. At present no vehicle has been registered on the basis of Euro 5.<br />

BLUETEC is helping us achieve our goal of making diesels as clean as gasoline engines and thus ready for future<br />

emission limits worldwide.<br />

In the BLUETEC system, <strong>Daimler</strong> brings together various technical features for reducing all relevant emission<br />

components in diesel passenger cars and commercial vehicles. The system includes optimized combustion<br />

engines, an oxidizing catalytic converter, and a diesel particulate filter. It also uses innovative technologies to<br />

reduce nitrogen oxide emissions (either an enhanced DeNOx storage catalytic converter with an SCR catalytic<br />

converter, or the latter plus injection of an additive known as AdBlue).<br />

In October 2006, the world’s first BLUETEC passenger car – the Mercedes-Benz E 320 BlueTEC (with a DeNOx<br />

storage catalytic converter and an SCR catalytic converter) – was launched on the North American market.<br />

It was followed in December 2007 <strong>by</strong> the E 300 BlueTEC in Europe. Starting in 2008, three other BLUETEC<br />

models will be offered on the U.S. market – in the R-Class, the M-Class, and the GL-Class. All three will initially<br />

be available in the U.S. only, where they meet the extremely stringent Bin 5 and ULEV emission standards.<br />

Mercedes-Benz is thus the first manufacturer able to offer diesel SUVs in all 50 U.S. states. Beginning in 2010,<br />

BLUETEC will also be available as a technology package in combination with a hybrid module, initially in the E<br />

300 BlueTEC HYBRID and the S 400 BlueTEC HYBRID.<br />

Low-emission commercial vehicles. Thanks to BLUETEC, <strong>Daimler</strong> commercial vehicles already comply with the<br />

Euro V emission limits that will not go into effect until 2009 for new vehicles. With this technology base, such<br />

vehicles are also ready for the next phase of emission legislation – Euro VI. We’re also utilizing the technology to<br />

ensure that our commercial vehicles and buses comply with the stringent emission limits that will go into effect<br />

in the NAFTA region and Japan (EPA 10 and JP 09, respectively).<br />

The foundation for BLUETEC is provided <strong>by</strong> further optimized engines featuring higher peak pressure and<br />

compression ratios that result in cleaner combustion, fewer particulates, and – depending on the engine variant<br />

– higher output. Such engines also consume up to 6 percent less fuel than those installed in Euro III vehicles.<br />

Once exhaust gases leave the engine, they are brought into contact with AdBlue that is injected from a special<br />

tank into the hot exhaust gas flow, where it reacts to form ammonia. The gases are treated in an SCR catalytic<br />

converter before they are emitted into the atmosphere. Here, a catalytic reaction transforms nitrogen oxides into<br />

harmless nitrogen and water. The AdBlue itself is stored in a separate tank that can be refilled using a normal<br />

pump. Around one liter of AdBlue is required for 25 liters of diesel fuel.<br />

More than 150,000 commercial vehicles equipped with the AdBlue system have been handed over to customers<br />

since series production of BLUETEC technology was launched at the end of 2004. Starting with heavy-duty longdistance<br />

trucks, we have gradually expanded our range of BLUETEC 5 vehicles right down to light trucks for<br />

short-range distribution.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use / Airborne emissions /<br />

EU emission standards*<br />

Development of EU-wide emission<br />

standards*<br />

With its Euro limits, the European Union (EU) imposes binding emissions values for cars and commercial vehicles.<br />

After imposing initial standards known as Euro 0 (for commercial vehicles) and Euro 1 (for cars), the EU<br />

successively amended the directives, reducing the limits in the process. The following diagrams depict the<br />

development of the EU emissions limits.<br />

Development of EU emissions limits for diesel-<br />

powered cars<br />

* Content on this page is available exclusively on the Internet.<br />

Development of EU emissions limits for gasoline-<br />

powered cars<br />

Development of EU emissions limits for trucks and buses (heavy-duty commercial vehicles)


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use / Airborne emissions /<br />

BLUETEC technology at <strong>Daimler</strong>*<br />

BLUETEC technology at <strong>Daimler</strong>*<br />

BLUETEC technology at <strong>Daimler</strong><br />

Cleaner diesel<br />

Extracting maximum performance out of every drop of diesel fuel burned, while at the same time minimizing<br />

pollutant emissions, is a challenge Mercedes-Benz is addressing with its fuel-efficient diesel engines and<br />

revolutionary BLUETEC diesel technology. BLUETEC is a modular exhaust gas treatment system that combines<br />

engineinternal and downstream aftertreatment measures in order to minimize emissions.<br />

<strong>Daimler</strong> has developed two versions of BLUETEC: In passenger cars like the E 320 BlueTEC and E 300 BlueTEC,<br />

the system comprises an oxidizing catalytic converter, an enhanced DeNOx storage catalytic converter, and a<br />

diesel particulate filter with an SCR (selective catalytic reduction) catalytic converter. The E 320 BlueTEC, which<br />

has been available in the U.S. since the fall of 2006, thus boasts emissions lower than the maximum permitted<br />

<strong>by</strong> the Bin 8 standard. With consumption of 6.7 liters per 100 kilometers, it’s also the most fuel-efficient vehicle<br />

in its class in the country. The same technology from the E 320 BlueTEC is utilized in the E 300 BlueTEC, which<br />

was launched in Europe in December 2007 and already meets the Euro 5 emission standard, which won’t go into<br />

effect until 2009.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use / Airborne emissions /<br />

BLUETEC technology at <strong>Daimler</strong>*<br />

BLUETEC with DeNOx storage catalytic converter<br />

The second version of BLUETEC, which has been proving its worth in the truck and bus segment since 2005, will<br />

also be featured in the new GL-, ML-, and R-Class models to be launched in the U.S. in 2008. Here, an additive<br />

known as AdBlue is injected into the exhaust gas flow in order to release ammonia, which reacts with nitrogen<br />

oxides in the downstream SCR catalytic converter to form harmless nitrogen and water. <strong>This</strong> second BLUETEC<br />

version is thus even more effective, and the vehicles that use it not only meet the stringent Bin 5 standard but<br />

also have the potential to achieve emission levels below the limits stipulated <strong>by</strong> the future Euro 5 and Euro 6<br />

standards.<br />

BLUETEC with AdBlue<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Products and product use / Noise emissions<br />

Noise emissions<br />

Along with the airflow, a vehicle’s axles, steering system, tires, engine, and powertrain also have a major impact<br />

on acoustic comfort. Cooperation between aero-acoustic experts and vehicle body and engine developers has<br />

led to a reduction in both interior and exterior noise emissions in <strong>Daimler</strong> vehicles. The problem of traffic-related<br />

noise cannot be solved <strong>by</strong> measures affecting the vehicles alone, however. Other important factors here are<br />

increasing traffic densities, construction along roadways, driving habits, the surfaces and conditions of roads,<br />

and tire properties. In general, the main contributory factors to noise in commercial vehicles are the mostly<br />

rough tread patterns on truck tires, as well as vehicle bodies and the loads the trucks carry. Low-vibration<br />

design, optimum engine encapsulation, and aerodynamically efficient cabs are key parameters that <strong>Daimler</strong> can<br />

directly influence. The Group also works closely with body manufacturers to achieve optimum alignment of the<br />

entire vehicle with a view to reducing noise emissions to a minimum.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / End of life<br />

End of life<br />

MeRSy conserves resources. The Mercedes-Benz Recycling System (MeRSy) helps ensure that a growing number<br />

of end-of-life parts are recycled on a voluntary basis, thus reducing the volume of waste. Old vehicle fluids are<br />

also reprocessed. In 2007, for example, we recycled around 630,000 liters of coolant and brake fluid each.<br />

MeRSy also manages the collection and recycling of auto parts and end-of-life materials from passenger car and<br />

commercial vehicle service centers for the Mercedes-Benz and smart brands. What began in a few workshops in<br />

1993 is today well established throughout Germany, Austria, and Switzerland. In 2007, MeRSy collected a total<br />

of 29,720 tons of end-of-life parts and materials for recycling.<br />

Take-back network for end-of-life vehicles. <strong>Daimler</strong> is establishing a take-back network for end-of-life vehicles in<br />

cooperation with local importers and national disposal companies in all EU countries. <strong>This</strong> ensures that the<br />

Group’s customers can dispose of their vehicles easily and conveniently. It also guarantees not only the high<br />

quality of all recycling operations but also that they conform with applicable laws.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Activities and goals<br />

Activities and goals<br />

Our environmental commitment: Activities and goals<br />

One of the key environmental challenges involves the impact of human beings on the climate and the air quality<br />

in the major metropolitan areas of the industrialized world and – more importantly – in the megacities of<br />

emerging markets and developing countries. We are addressing this challenge, and others. We therefore have an<br />

obligation to develop product and process innovations that reduce the environmental impact of our business<br />

activities.<br />

We have made substantial progress in reducing productionrelated emissions of CO 2 over the last few years<br />

through the utilization of lower-carbon energy sources and heat-power co-generation units, as well as through<br />

energy conservation, efficiency gains, and heat recovery systems. Integrated and downstream measures such as<br />

the introduction of waterbased paints have also helped reduce solvent emissions. Through our “Road to the<br />

Future” and “Shaping Future Transportation” initiatives, we are working hard to lower the fuel consumption and<br />

exhaust gas emissions of our passenger cars and commercial vehicles. CDI technology, gasoline direct injection<br />

(CGI), our seven-speed automatic transmission, and the new-generation smart fortwo offer examples of<br />

technologies and products that have already led to a significant improvement in the fuel economy of our<br />

passenger cars. Our innovative BLUETEC technology, which we introduced initially in our commercial vehicles<br />

and now also in our diesel passenger cars, has made a major contribution to reducing particulate and nitrogen<br />

oxide emissions. And the technology package of BLUETEC combined with hybrid modules will lower vehicle<br />

emissions even further in the future. Hybrid technology is becoming more important in the commercial vehicle<br />

segment as well, where it can reduce diesel fuel consumption <strong>by</strong> as much as one-third, depending on how the<br />

vehicle in question is used.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Activities and goals<br />

Fleet consumption<br />

Goals Activities/status Goal<br />

Regardless of <strong>what</strong> form the EU’s<br />

draft legislation on reducing CO 2<br />

emissions in new vehicles ultimately<br />

takes, <strong>Daimler</strong> will implement<br />

measures to further lower such<br />

emissions for its vehicle fleet in<br />

Europe, in order to meet the EU’s<br />

fleet consumption objectives.<br />

<strong>Daimler</strong> aims to be “best in class” in<br />

terms of the CO 2 emissions of its<br />

vehicles. Beginning in 2007, the<br />

Group plans to introduce at least<br />

one vehicle per year in each of the<br />

large-volume series (S-, C -, E-, A-<br />

/B- and M-Class and smart) with<br />

CO 2 emissions significantly lower<br />

than those of the respective<br />

predecessor model from 2006.<br />

Reductions will total at least<br />

8 percent for the small-car segment<br />

(smart, A-/ B -Class) and at least<br />

15 percent for the middle and<br />

upper-range segments.<br />

Our efforts to reduce fuel consumption will be further intensified.<br />

Here, downsizing and turbocharging will play an important role<br />

with regard to the engine. The principal measures include:<br />

� rollout of direct gasoline injection in our four-cylinder<br />

gasoline engines as of 2010 (consumption reduction<br />

potential approx. 10 percent) – this technology has already<br />

been available in the CLS 350 since 2006 and the E 350 CGI<br />

since 2007 and will be available in the C350 CGI <strong>by</strong> the end<br />

of 2008.<br />

� introduction of start-stop systems, initially in the smart<br />

(2007), followed <strong>by</strong> the A-/B-Class (consumption reduction<br />

potential approxiamately 8 percent);<br />

� four-cylinder gasoline and diesel engines with optimized<br />

consumption as of 2008/2009 (savings potential 5 –<br />

10 percent);<br />

� development of the so-called DIESOTTO concept<br />

(consumption reduction potential of 15 – 20 percent) – 1st<br />

stage <strong>by</strong> 2012;<br />

� improvement of energy management (5 –10 percent)<br />

Compared with the reference year 1995, the average fuel<br />

consumption of Mercedes vehicles has been reduced <strong>by</strong><br />

21.3 percent as a result of various measures; this reduction rate<br />

is almost 50 percent higher than the ACEA average.<br />

We are employing technical measures to improve the efficiency of<br />

the drive train – e.g. new combustion processes. The fuel<br />

consumption of the gasoline engine with stratified direct<br />

injection, also available in the E-Class since 2007, is around<br />

10 percent lower. The high injection pressure and newly<br />

developed seven-hole injectors of the latest-generation CDI<br />

engine, introduced in the new-generation smart fortwo in 2007,<br />

make for a 13-percent reduction in fuel consumption. With the<br />

launch of BlueEFFICIENCY vehicles (starting with the C-Class in<br />

2008) we will reach, and in some cases clearly surpass, our<br />

reduction targets for the medium and upper-range segments. The<br />

C 200 CDI BlueEFFICIENCY launched in April 2008 boasts a CO 2<br />

emission level 17 percent lower than that of the predecessor<br />

model, and the CO 2 emissions of the C 180 KOMPRESSOR<br />

BlueEFFICIENCY (also launched in April 2008) have been reduced<br />

<strong>by</strong> 15 percent.<br />

attainment<br />

Further<br />

development of<br />

the current<br />

consumption<br />

goals for<br />

Europe<br />

Goal still<br />

applies<br />

Link<br />

Link<br />

Link<br />

Link


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Activities and goals<br />

Climate protection<br />

Link<br />

Goals Activities/status Goal attainment Link<br />

Beginning in 2007:<br />

Introduction of various<br />

hybrid solutions to be<br />

offered either<br />

individually or in<br />

combination,<br />

depending on vehicle<br />

class, type of use, and<br />

customer<br />

requirements.<br />

Further development of<br />

fuel cell vehicles with<br />

the aim of increasing<br />

vehicle range and<br />

achieving series-<br />

production capability<br />

for passenger car fuel<br />

cell drives.<br />

Continual reduction of<br />

specific productionrelated<br />

CO 2 emissions<br />

at Mercedes-Benz<br />

Cars, <strong>Daimler</strong> Trucks,<br />

and Vans, Buses,<br />

Other.<br />

� An alliance has existed with General Motors, Chrysler, and BMW<br />

since 2005 for the joint development of a hybrid drive system in<br />

the U.S.<br />

� Since March 2007 the BMW Group has collaborated with <strong>Daimler</strong><br />

AG to develop a hybrid module for rear-wheel-drive passenger cars<br />

in the premium segment.<br />

� Introduction of hybrid production cars in mid-2009.<br />

� Market launch of the Freightliner M2 Hybrid in 2008.<br />

� Series production launch of the Citaro G BlueTec Hybrid bus in<br />

2009.<br />

The smart mhd (micro hybrid drive) with a start-stop system was<br />

launched on the market in October 2007 (consumption reduction<br />

8 percent). Orion hybrid buses and the Fuso Eco Canter truck are<br />

already being used <strong>by</strong> customers. <strong>Daimler</strong> is the world market leader for<br />

hybrid buses. The introduction of the Fuso Aero Star Eco Hybrid in<br />

September 2007 marked the launch of the second generation of<br />

Mitsubishi Fuso hybrid buses.<br />

� Increasing the range of the fuel-cell passenger car trial fleet from<br />

177 km today to 400 km <strong>by</strong> 2010.<br />

� Launch of small-lot production of the B-Class F-Cell in early 2010.<br />

� The second generation of fuel cell buses in the form of Citaro fuel<br />

cell hybrids based on the Citaro BlueTec Hybrid is launched.<br />

In 2005 we presented the F 600 HYGENIUS research vehicle featuring<br />

an optimized fuel cell system with a smaller but more powerful stack<br />

and excellent cold-start properties.<br />

Data collection and evaluation have been improved and the method of<br />

calculating CO 2 emissions has been standardized throughout the Group.<br />

Benchmarking and savings projects have already led to success at all<br />

business units. We are now conducting feasibility studies on measures<br />

for improving energy efficiency as well as on other issues such as<br />

cogeneration, biomass, and photovoltaics. At the plant level, we have<br />

launched programs to exploit specific potential for improving energy<br />

efficiency and reducing energy consumption and CO 2 emissions at each<br />

location. Compared to the period 2006 – 2007, CO 2 emissions per<br />

vehicle manufactured declined <strong>by</strong> 6 percent at Mercedes-Benz Cars and<br />

<strong>by</strong> 11 percent at Mercedes-Benz Vans. At <strong>Daimler</strong> Trucks, on the other<br />

hand, specific CO 2 emissions rose 3 percent due to a drop in<br />

production. Absolute CO 2 emissions for the Group as a whole fell <strong>by</strong><br />

1.9 percent during the same period.<br />

Goal still applies Link<br />

Link<br />

Goal still applies Link<br />

Goal still applies Link


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / Activities and goals<br />

Air pollution control<br />

Goals Activities/status Goal attainment Link<br />

Commercial vehicles: Cutting NO x<br />

emissions <strong>by</strong> launching BLUETEC in<br />

Mercedes-Benz trucks and buses<br />

sold in Europe, and advance<br />

compliance with the Euro IV<br />

emission standard (valid from<br />

October 2006) via BLUETEC 4<br />

vehicles, and Euro V (valid from<br />

October 2009) via BLUETEC 5<br />

models.<br />

Passenger cars: Reduction of NOx emissions via the series-production<br />

launch of BLUETEC technology in<br />

the first Mercedes-Benz passenger<br />

car model in the U.S. in fall 2006<br />

and in Europe in 2008.<br />

Gradual introduction of BLUETEC for Euro IV and BLUETEC<br />

for Euro V. Development of engines to further increase<br />

efficiency and thus fuel economy, while retaining at least<br />

the same long service life. Following the launch of<br />

BLUETEC in the Mercedes-Benz Actros, the technology is<br />

now available in all commercial vehicle and bus models.<br />

More than 150,000 Mercedes-Benz trucks and buses<br />

equipped with the new exhaust gas technology have been<br />

delivered to customers since early 2005.<br />

Step-<strong>by</strong>-step introduction of BLUETEC technology in an<br />

initial group of Mercedes-Benz passenger car models and<br />

enhancement of this technology for all model series.<br />

Market launch of the E 320 BlueTEC commenced in North<br />

America in October 2006 and in Europe in September<br />

2007. Three more V6 BLUETEC models will be launched in<br />

the U.S. starting in 2008 in the R-Class, M-Class, and GL-<br />

Class.<br />

Goal still applies Link<br />

Goal still applies Link


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / External statement<br />

External statement<br />

<strong>Daimler</strong> at the “Tipping Point”: The Group’s Future Success Hinges on Effective Climate Protection. When used in<br />

connection with the global climate, the term tipping point refers to the point in time when indicators of climate<br />

change suddenly give way to drastic negative events. From the perspective of the Institute for Applied Ecology<br />

(Öko-Institut) in Germany, <strong>Daimler</strong>’s executive management team has also reached a tipping point, as the priority<br />

assigned to climate protection in the transportation sector <strong>by</strong> both governments and businesses in the near<br />

future will have a decisive impact on the Group’s success over the long term.<br />

The following <strong>report</strong> details <strong>Daimler</strong>’s climate protection achievements and outlines the challenges that remain.<br />

The <strong>report</strong> marks the fourth time that <strong>Daimler</strong> has asked the Institute for Applied Ecology to comment on the<br />

company’s progress in this area and identify the strategic changes that still need to be made. I Our institute has<br />

been pointing out for quite some time that sustainable mobility and climate protection are issues that need to be<br />

more closely monitored and coordinated <strong>by</strong> executive management bodies. We therefore expressly welcome<br />

<strong>Daimler</strong>’s establishment of a Sustainability Board. We also recognize that <strong>by</strong> restructuring its procurement<br />

system through a strategy committee, <strong>Daimler</strong> is seeking to enhance its systematic sustainability management<br />

and promote environmental protection in its relationships with its suppliers. Outfitting the Sustainability Board<br />

with all the necessary authority and incorporating social stakeholder groups into the process will also play a role<br />

in determining how successful the cooperation with established bodies will be for the achievement of ambitious<br />

goals, such as climate protection targets for production, logistics, and the supply chain, which we unfortunately<br />

once again find lacking this year.<br />

Nevertheless, the “Roadmap” <strong>Daimler</strong> has presented for its product range, which includes the introduction of 19<br />

new models for its high-volume series <strong>by</strong> 2011, does create the impression that the Group now realizes just how<br />

important climate protection is. The associated positive message being sent that many technologies – up to and<br />

including diesel hybrid drives – will be ready for market launch in the near future underscores <strong>Daimler</strong>’s<br />

determination to be a technology leader in this area as well. Whether or not the planned technology packages<br />

can actually enable <strong>Daimler</strong> to achieve its “best-in-class” objective remains questionable. The models presented<br />

to date still do not live up to this claim.<br />

The current controversy regarding the proper strategy for increasing the share of biofuels in the fuel mix is<br />

putting additional pressure on the company to further enhance the fuel efficiency of its vehicles as its primary<br />

objective. The nature of this debate does, however, confirm that <strong>Daimler</strong> is on the right track with its activities<br />

involving second-generation biofuels, such as its cooperation with CHOREN and its joint efforts with the WWF to<br />

establish sustainability standards for both domestic and, above all, imported biofuels.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Environmental protection, innovation, and safety / External statement<br />

In 2007 the Institute for Applied Ecology suggested that <strong>Daimler</strong> should target an fleet average of 130 – 140 g<br />

CO 2 /km <strong>by</strong> 2012 for Mercedes-Benz and smart combined. According to independent studies, on the basis of the<br />

current EU draft directive <strong>Daimler</strong>’s target should be 136 g/km <strong>by</strong> 2012, which is 25 percent lower than today’s<br />

average. We welcome the fact that <strong>Daimler</strong> plans to achieve this EU fleet target in spite of uncertainties<br />

regarding the specifics of how this should be done. Still, it is difficult to believe that average fleet consumption<br />

for Mercedes Benz and smart can be reduced <strong>by</strong> more than 25 percent over the next few years, when only two of<br />

13 engine variants of a new model series are offered as BlueEFFICIENCY versions, as is the case with the new C-<br />

Class sedan. <strong>This</strong> is particularly the case in view of the fact that the 11 other more powerful engine variants in<br />

the C-Class have emissions up to 80 percent higher than those of the C 200 CDI BlueEFFICIENCY.<br />

It will not be possible to lower fleet consumption without the successful marketing of BlueEFFICIENCY models.<br />

Such successful marketing in turn requires the Group to focus its business model more strongly on fuel-efficient<br />

high-volume model series. The responsible and successful marketing of fuel-efficient vehicles will also require<br />

clearer advertising messages. In 2007, for example, <strong>Daimler</strong> promoted the E 320 BlueTEC in Germany with the<br />

slogan “climate protection as standard.” <strong>This</strong> highlighted the model’s contribution to climate protection, despite<br />

the fact that BLUETEC technology primarily aims to lower nitrogen oxide emissions. While we are very pleased <strong>by</strong><br />

the successful transfer of BLUETEC technology from commercial vehicles to passenger cars, as this is an<br />

important contribution to improving air quality, we must nevertheless point out that marketing campaigns such<br />

as the one used for the E 320 BlueTEC can mislead customers.<br />

We know very well that an automaker’s model policy is a sensitive issue that is frequently considered<br />

“untouchable.” However, the possibility of an approaching tipping point of the global climate leaves little room<br />

for taboos. Whether or not it will be possible in the future to continue defining premium-segment comfort and<br />

luxury solely in terms of engine output and vehicle size is a question <strong>Daimler</strong> also has to answer for itself as it<br />

seeks to develop a business model that will keep the Group successful over the long term.<br />

Christian Hochfeld<br />

Berlin, May 2008<br />

Christian Hochfeld is Deputy Director, Öko-Institut e.V.<br />

Öko-Institut e.V. is one of Europe’s leading independent research and consultancy institutes for a sustainable future.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees<br />

Employees. Innovative measures for safeguarding the future, effective health<br />

management, occupational safety, and the targeted promotion of diversity are key<br />

elements of our sustainable human resources policy.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Foreword<br />

<strong>Dear</strong> <strong>readers</strong>,<br />

Our employees play a key role in our business success, which is why <strong>Daimler</strong>’s commitment to social<br />

responsibility begins with the men and women who work for us. Even in the aftermath of the Chrysler demerger,<br />

<strong>Daimler</strong> remains a globally operating company with more than 272,000 employees. We took on more than<br />

13,000 new members of staff around the world in 2007, 5,500 of whom were hired in Germany. At the same<br />

time, some 14,500 employees left the company in 2007 (5,400 in Germany) either voluntarily or after having<br />

reached retirement age. Restructuring measures remain necessary for maintaining our competitiveness. Only <strong>by</strong><br />

achieving business success can we continue to develop jobs over the long term.<br />

The Human Resources department makes an important contribution to the sustained positive development of the<br />

company. That’s why we have created the HR Sustainability Committee, which will address key personnel issues<br />

and developments more closely in the future. The professional development of our employees will be a major<br />

focus here, which is why we’re investing heavily in the associated measures. If we are able to further promote<br />

employees’ talents and their intercultural and personal skills in line with our present and future needs, we will<br />

remain successful as an organization. <strong>Daimler</strong> has also been making substantial investments to assist families<br />

with children through our high-quality “Sternchen” daycare centers. In addition, our strategic human resources<br />

planning units are currently assessing our future personnel needs in terms of both quality and quantity. By<br />

comparing today’s situation with future scenarios that take into account the coming demographic changes, we<br />

are obtaining the knowledge we need in order to plan future hiring operations, training measures, health<br />

management policies etc. Providing excellent training opportunities remains a permanent obligation at the<br />

Group, one that also benefits society as a whole. As a result, <strong>Daimler</strong> will continue to account for almost 40<br />

percent of all trainee positions available in the German automotive industry.<br />

Our corporate pension system is taking on much greater importance at the company as a result of demographic<br />

developments. We are therefore cooperating with employee representatives to modernize this system and<br />

prepare it for the future. The diversity of our workforce also requires professional management – and this is<br />

especially true in Germany with regard to the percentage of women in managerial positions.<br />

Another important human resources issue at <strong>Daimler</strong> is employee satisfaction, which we regularly measure<br />

through employee surveys. Our overall employee satisfaction results in 2007 matched those of the prior year,<br />

and in order to ensure that we continue to make progress in the future, we will utilize the survey results to<br />

develop and implement specific measures.<br />

Our employees are our future. They not only make our company <strong>what</strong> it is but also help to shape society in a<br />

variety of ways, both inside and outside the organization. At the moment, for example, 96 <strong>Daimler</strong> staff members<br />

are teaching at universities while continuing to perform their jobs at our company.<br />

Günther Fleig<br />

Member of the Board of Management<br />

Human Resources and Labor Relations Director


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce / Workforce development<br />

Workforce development<br />

On December 31, 2007, <strong>Daimler</strong> had 272,382 employees worldwide (2006: 274,024). Of these, 166,679 were<br />

employed in Germany (2006: 166,592) and 24,053 were employed in the United States (2006: 27,629). The<br />

number of trainees in 2007 was 9,300 (2006: 9,352). The decrease in workforce numbers compared with 2006<br />

was primarily due to implementation of the New Management Model and other efficiency enhancement<br />

measures.<br />

Mercedes-Benz Cars employed 97,526 people at the end of last year (2006: 99,343). The development of<br />

staffing levels varied within the <strong>Daimler</strong> Trucks division. Whereas headcounts in Europe and Brazil increased<br />

sharply as a result of strong demand, we had to reduce employment levels in North America due to the market<br />

downturn. At the end of 2007, <strong>Daimler</strong> Trucks employed 80,067 persons (2006: 83,237). At 6,743, the number<br />

of employees at <strong>Daimler</strong> Financial Services in 2007 was 1 percent lower than in the prior year (6,813). Especially<br />

as a result of strong worldwide demand for the Sprinter model, we significantly increased the headcount at<br />

Mercedes-Benz Vans to 17,524 employees (2006: 15,591), above all at the Düsseldorf plant. The number of<br />

employees at <strong>Daimler</strong> Buses also increased, to 17,286 (2006: 16,884).<br />

Total workforce <strong>by</strong> region<br />

Implementation of the New Management Model, presented in January 2006, continued according to plan in 2007<br />

– administrative functions around the world were consolidated and processes standardized. Workforce<br />

adjustments in administrative departments also proceeded on schedule.<br />

Total workforce <strong>by</strong> division<br />

Year- end 2006 and 2007 2006 2007<br />

Mercedes-Benz Cars 99,343 97,526<br />

<strong>Daimler</strong> Trucks 83,237 80,067<br />

<strong>Daimler</strong> Financial Services 6,813 6,743<br />

Vans, Buses, Other 37,679 39,968<br />

Sales Organization 46,952 48,078


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce / Fluctuation<br />

Fluctuation<br />

The <strong>Daimler</strong> Group’s worldwide employee fluctuation rate in 2007 was 7.1 percent, a decrease of 0.7 percentage<br />

points from the prior year. The fluctuation rate in Germany was 3.6 percent (2006: 7.8 percent), while in the U.S.<br />

it was 17.8 percent (2006: 5.5 percent), and in the rest of the world 10.9 percent (2006: 9.1 percent). These<br />

figures include human resources measures such as early retirements, voluntary severance agreements, part-time<br />

phased early retirement contracts (especially in Germany), and layoff contracts in the U.S. The decline in the<br />

fluctuation rate in Germany was primarily due to the conclusion of CORE restructuring measures. The sharp<br />

increase in fluctuation of 12.3 percent in the U.S. resulted from workforce reductions related to the aftereffects<br />

of advanced purchases due to the introduction of the more stringent EPA 07 emission limits.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce / Flexible use of human resources<br />

Flexible use of human resources<br />

Thanks to many tools that promote flexibility, <strong>Daimler</strong> can react to fluctuations in demand <strong>by</strong> increasing or<br />

decreasing its human resources capacities without having to adjust its core workforce. These tools include a<br />

variety of worktime models, employee delegation via “Dmove” (an internal personnel exchange system), and the<br />

hiring of employees with limited-term contracts. Another tool is provided <strong>by</strong> flexible approaches to organizing<br />

worktime. The number of part-time employees at the Group’s German locations has decreased: A total of 8,006<br />

employees (2006: 8,299) – in other words, 5.2 percent of the total workforce (2006: 5.4 percent) – worked parttime<br />

in 2007.<br />

Workforce capacity requirements at the plants are subject to variation. In order to react to fluctuations in a<br />

versatile manner, the Group has agreed with the General Works Council on the “Safeguarding the Future 2012”<br />

program for regulating the number of temporary workers at German plants, with an upper limit of 2,500.<br />

Temporary workers receive the same basic hourly wage as permanent employees.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce / Flexible use of human resources / "Safeguarding the Future: 2012"*<br />

"Safeguarding the Future: 2012"*<br />

In July 2004, the company management and the general works council agreed on a comprehensive reform<br />

package known as "Safeguarding the Future: 2012." The reform package encompasses a large number of longterm<br />

measures that increase the company's profitability and there<strong>by</strong> help to secure jobs in Germany. An<br />

overview of the reform package was published for the former <strong>Daimler</strong>Chrysler AG at the time the agreement was<br />

reached in 2004.<br />

� Zukunftssicherung 2012 (PDF, 1 MB)<br />

Unfortunately, this brochure exists only in German.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce / Employee satisfaction<br />

Employee satisfaction<br />

<strong>Daimler</strong> regularly conducts employee surveys at all of its plants and other locations. In November 2007, we also<br />

carried out the Global Employee Commitment Survey (GECS) for the second time since 2006. <strong>This</strong> survey uses a<br />

uniform method to obtain a representative worldwide sample that reflects employees’ commitment to, and<br />

identification with, the company. It also measures employees’ satisfaction with their work situation and leaders,<br />

as well as their familiarity with the Corporate Values and compliance regulations. Special attention in this ethicallegal<br />

area was paid to feedback from executive managers.<br />

Employee commitment is measured through the HR Scorecard system, with values ranging from 0 to 100. The<br />

Employee Commitment Index (ECI) value of 58 from the latest survey (2007/2008) indicates a relatively<br />

homogenous result, which nevertheless corresponds to the average in external comparisons. Results of the<br />

survey section on satisfaction with the work and leadership situation were generally positive.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce / Employee satisfaction / Key results of the Employee Survey*<br />

Key results of the Employee Survey*<br />

The “Global Employee Commitment Survey” (GECS) provides the Group and its individual divisions with a clear<br />

and globally differentiated overview of the opinions and attitudes of their employees and managers. The survey is<br />

meant to assist in the evaluation of the change processes carried out in 2006 and, where applicable, to provide<br />

information on <strong>what</strong> further improvements need to be made.<br />

The results of the survey show a high level of awareness among staff with regard to our Corporate Values, which<br />

the great majority of our employees also identify with. Employees also have clear expectations of how managers<br />

should serve as role models. Specific measures for improvement will be discussed and approved throughout the<br />

course of 2008.<br />

The survey section on Compliance revealed across-the-board positive assessment of this issue and a high level of<br />

sensitivity, both of which are reflected in employee actions. Our ethical and legal standards are thus now firmly<br />

entrenched throughout the company.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce / Social security<br />

Social security: Retirement benefits and<br />

health care<br />

A sound financial base, coupled with adequate risk assessments, forms the foundation of <strong>Daimler</strong>’s provisions for<br />

a secure retirement, or for the event that employees become unable to work anymore. The “Global Pension<br />

Guidelines” outline the way these goals should be reached. A special governance structure controls the Group’s<br />

worldwide pension plans, and any Group company wishing to change an existing pension scheme or introduce a<br />

new one must obtain approval to do so from the Global Pension Committee.<br />

Provisions for retirement benefits and health care<br />

in € billion 2006 2007<br />

Provision for retirement<br />

benefits and health care 19.01 3.9<br />

Social security contributions<br />

of which in Europe 2.0 1.9<br />

NAFTA countries 0.9 0.4<br />

rest of world 0.4 0.3<br />

1 2006 incl. Chrysler<br />

All data acc. to IFRS


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce / The “Aging Workforce” initiative<br />

The “Aging Workforce” initiative<br />

Current demographic developments present strategic challenges for the Group’s human resources management<br />

system. A shifting age structure and the German government’s raising of the retirement age to 67 will increase<br />

the average age of the <strong>Daimler</strong> workforce over the next 10 years from 42 to approximately 47. The elimination of<br />

government subsidies for part-time work <strong>by</strong> employees approaching retirement will reduce the opportunities for<br />

such part-time employment. Another challenge associated with demographic developments is the declining<br />

number of skilled potential employees in Germany. <strong>Daimler</strong> is relying on two proven packages of measures to<br />

address these issues: One of these involves furthering the performance capabilities of our employees, no matter<br />

<strong>what</strong> their age, while the other aims to safeguard the knowledge possessed <strong>by</strong> the entire workforce (see table<br />

below).<br />

Beyond that, we also launched an HR Resource Management Project at several Group locations in 2007 in order<br />

to increase the transparency of our resources at the company and initiate the required developmental steps for<br />

improvement. At one organizational unit, the Group’s complete expertise and demographic distribution are<br />

registered and assessed. These factors are categorized in accordance with criteria such as the vehicle model mix<br />

or technological developments. <strong>This</strong> enables us to determine our recruiting and training requirements in a timely<br />

manner, and then act accordingly.<br />

Demographic development as a strategic challenge – our instruments<br />

For example, at our Wörth pilot plant, we adjusted the number of professions for which training is offered – as<br />

well as the structure of the training programs themselves – in line with the strategic requirements of the future,<br />

and then initiated targeted measures for the further training of our existing workforce. We also ensured that<br />

skilled production workers were given permanent employment contracts, and that qualified production trainees<br />

were offered positions at the company once they completed their programs.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Dialogue with employee representative interestgroups<br />

Dialogue with employee representative<br />

interest groups.<br />

<strong>Daimler</strong> cooperates closely with internal and external employee representatives in works councils and trade<br />

unions, within and beyond national boundaries. The most important bodies here are the World Employee<br />

Committee (WEC), which was formed on a voluntary basis in 2002, and the European Works Council, which dates<br />

back to 1996. In Germany, ten members of the <strong>Daimler</strong> AG Supervisory Board are employee representatives, in<br />

accordance with German co-determination legislation.<br />

<strong>Daimler</strong> recognizes the basic right of workers to organize themselves in trade unions in accordance with the<br />

labor laws of each country. The Group also ensures that freedom of association is guaranteed at its facilities,<br />

even in countries that do not explicitly grant such freedom. All of these policies are laid out in our Principles of<br />

Social Responsibility, where our expectation is also formulated that such principles be introduced at our<br />

suppliers as well. Any business partner who violates one of these principles will be warned <strong>by</strong> the Group. <strong>Daimler</strong><br />

also <strong>report</strong>s regularly to the WEC on such violations.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Performance and remuneration<br />

Performance and remuneration<br />

<strong>Daimler</strong> rewards good work <strong>by</strong> <strong>means</strong> of performance-oriented and success-oriented compensation in line with<br />

local conditions. Binding Group-wide remuneration agreements are in force for employee assignments abroad<br />

and for retirement benefits. <strong>This</strong> system ensures that we remain competitive and attractive in diverse markets. It<br />

also allows us to take into account <strong>what</strong> are in some cases very different economic conditions in various<br />

locations.<br />

Expenditures for human resources at <strong>Daimler</strong> in 2007 totaled € 16 (€ 20.3) billion, most of which was accounted<br />

for <strong>by</strong> wages and salaries. Of that total, € 11.4 billion was spent in Germany, € 1.7 (€ 6) billion in the NAFTA<br />

region, and € 2.9 billion in the remaining countries. All figures in brackets represent human resources<br />

expenditure that includes Chrysler up until deconsolidation on August 7, 2007.<br />

A uniform worldwide model is used for the remuneration of managers. <strong>This</strong> model consists of both base and<br />

variable elements, with the rate of the variable compensation growing in line with a manager’s increased level of<br />

responsibility. Variable performance-based elements also include stock option packages. <strong>Daimler</strong> can deny<br />

allocation of variable remuneration and performance phantom shares to any employee who violates codes of<br />

conduct such as the Integrity Code, for example.<br />

Remuneration for employees subject to collective bargaining agreements is based on regional or national<br />

agreements. All of the Group’s worldwide employees who are covered <strong>by</strong> collective bargaining agreements also<br />

receive full compensation for their mandatory and completed overtime.<br />

In 2007, <strong>Daimler</strong> introduced a new uniform collective framework agreement for hourly and salaried employees in<br />

Germany. Known as ERA, it is based on the agreement reached in the German state of Baden-Württemberg, and<br />

is now binding at all <strong>Daimler</strong> locations in Germany. ERA eliminates the distinction between hourly and salaried<br />

employees, as the work performed <strong>by</strong> qualified specialists and many salaried employees has become<br />

increasingly similar as of late. <strong>Daimler</strong> now pays supplemental wage or salary components to ensure that no one<br />

in the workforce is disadvantaged <strong>by</strong> the introduction of ERA. The collective bargaining system remuneration<br />

component, which is an important part of ERA, is paid out to most of the workforce on the basis of performance.<br />

The level of compensation is determined on an annual basis <strong>by</strong> <strong>means</strong> of a new leadership process known as<br />

NAVI, which is designed to intensify dialogue between management staff and their employees. Start, status, and<br />

assessment meetings between an employee and his or her supervisor must each take place at least once a year<br />

as part of the NAVI program.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Management development<br />

Management development<br />

The development and promotion of managers at <strong>Daimler</strong> is carried out in strict accordance with a uniform<br />

process at all levels of the company worldwide: the Leadership, Evaluation and Development Process, or LEAD<br />

for short. The goal of LEAD is to develop managers at all levels of the Group to such an extent that they possess<br />

both the business and personal skills required for their leadership tasks.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Vocational training and development<br />

Vocational training and professional<br />

development<br />

Vocational training and professional development are strategically important factors for sustained corporate<br />

success. Accordingly, <strong>Daimler</strong> promotes lifelong learning for its employees worldwide. In 2006, as part of a<br />

company agreement, the Group began offering a package of qualification and educational measures for all<br />

employees in Germany, with the exclusion of executive managers. Among other things, this agreement defines<br />

how an employee’s qualification requirements are to be determined in meetings with supervisors. One element<br />

of the system allows employees to leave the company for up to three years to pursue specific education and<br />

qualification goals, and then return to the Group once these have been achieved.<br />

<strong>Daimler</strong> AG invested € 213 million in training and qualification measures in Germany in 2007 (2006: € 212<br />

million). At the end of 2007, the Group had 9,300 trainees worldwide. We also gave jobs to about 2,600 trainees<br />

in Germany in 2007. The trainee hiring figure thus remained at the same high level as in the prior year. <strong>Daimler</strong><br />

currently trains more young people than it needs within its own divisions in order to help meet the strong<br />

demand for traineeships in Germany. Last year, our “CAReer” program offered approximately 650 young people<br />

worldwide – including candidates who directly joined the company without completing a training program – a<br />

firstclass start to their professional careers at <strong>Daimler</strong>.<br />

The Group’s DAS training system, which will be launched initially in Germany at the end of 2008, will help<br />

improve training quality and reduce the differences between the various locations. DAS will cover aspects such<br />

as the selection and eventual hiring of trainees, the various career profiles to be made available, and training<br />

content and structure. The system will also provide instructors with online access to training concepts and all<br />

required data and media.<br />

<strong>Daimler</strong> Corporate Academy. The new <strong>Daimler</strong> Corporate Academy, which was created between 2006 and 2007,<br />

combines the programs offered <strong>by</strong> the Leadership Academy (leadership and management qualification at all<br />

levels worldwide) and the Business Academy (specialist qualification in the corporate functions of Finance, Global<br />

Procurement, and Global Human Resources and Compliance, as well as interdisciplinary qualifications in<br />

Germany). It has thus become possible for the first time to provide education and training to employees around<br />

the world using efficient teaching architectures based on uniform <strong>Daimler</strong> standards. The consolidation of all<br />

activities in the <strong>Daimler</strong> Corporate Academy also expands the range of programs on offer, while significantly<br />

reducing the outlay required for external service providers.<br />

Some 1,800 managers at more than 60 locations participated in Leadership Academy programs in 2007, and<br />

more than 12,000 employees attended the Business Academy. In addition, in 2007, some 2,500 interdisciplinary<br />

qualification events attracted more than 25,000 participants.<br />

In 2008, the <strong>Daimler</strong> Corporate Academy will continue to focus on helping the divisions and corporate functions<br />

handle the change processes resulting from the <strong>Daimler</strong> Excellence process.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Vocational training and development /<br />

Training and qualification programs*<br />

Training and qualification programs*<br />

“CAReer — The Talent Program” is a Group-wide training program designed to recruit and further develop<br />

qualified college graduates and so-called early professionals. Among other things, the program’s innovative<br />

concept ensures standardized recruitment processes throughout the entire company. CAReer offers motivated<br />

and talented individuals the opportunity to obtain an overview of the Group in a short period of time, lock into<br />

broad-based networks, and achieve the necessary qualifications for a successful career at <strong>Daimler</strong>. Program<br />

sessions begin each month and last between 12 and 15 months. The sessions consist of three project<br />

assignments and two internationally focused training modules that include seminars and special courses. During<br />

the program, each trainee is supported <strong>by</strong> a mentor from a functional unit and a coach from the Human<br />

Resources department. CAReer covers the following eight training fields: engineering, research and development,<br />

production, procurement, sales and marketing, finance and controlling, information technology, and human<br />

resources.<br />

Leadership Academy: Management training as an integral element of human resources<br />

development<br />

For the first time ever, the <strong>Daimler</strong> Corporate Academy is now offering a globally integrated overall program. <strong>This</strong><br />

<strong>means</strong> that regardless of their location, all managers will be able to take advantage of training programs with<br />

identical content and quality, although there will be differences in accordance with local languages.<br />

<strong>This</strong> year will thus mark the first time that the roughly 800 managers promoted to Level 4 positions each year will<br />

participate in the same standardized program to prepare them for their new roles and assignments. Regional<br />

differences and issues specific to individual divisions will continue to be taken into account through "Divisions<br />

Days" in order to retain the benefits offered <strong>by</strong> programs that were previously carried out separately at the<br />

various divisions and at headquarters. The programs in question offer information relevant to the issues of<br />

diversity, the Corporate Values, and compliance, thus ensuring that newly appointed managers in particular will<br />

be well versed in such matters.<br />

A further example of consolidation is provided <strong>by</strong> the previously locally organized training sessions on coaching,<br />

which are offered <strong>by</strong> external experts. Here, a joint project conducted with the relevant human resources<br />

departments has led to the creation of a worldwide coaching pool consisting of some 250 internal and external<br />

coaches. <strong>This</strong> pool ensures rapid global availability of coaches, standardized quality assurance, and greater<br />

transparency with regard to contractual conditions. Despite the new centralization, local contact partners at the<br />

various plant human resources departments will continue to be available to offer advice and assistance.<br />

Business Academy: Specialized qualification and training worldwide, expert qualification<br />

throughout Germany<br />

The Group-wide activities carried out <strong>by</strong> the former Finance Academy have been fully incorporated into the<br />

Business Academy along with the "Fit for Profession" human resources and procurement program, and elements<br />

from the new compliance qualification program. In 2007, a process was begun to determine the required core<br />

areas of expertise for Business Academy activities and to align the training program accordingly. The results of<br />

this process were used to draw up an overall program for the employees and managers from the Finance,<br />

Procurement, Human Resources, and Compliance functional units who are to become qualified. The program was<br />

produced in several languages, and plans call for its international scope to be expanded in 2008, when finance<br />

and human resources training will gradually be offered to more and more employees in Japan, China, and the<br />

U.S.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Occupational health and safety<br />

Occupational health and safety<br />

<strong>Daimler</strong> management has worked together with the World Employee Committee to develop basic principles for<br />

overall occupational health and safety at the Group. These principles are based on the current legislation for<br />

each country and the guidelines issued <strong>by</strong> the International Labour Organization (ILO) for occupational health and<br />

safety (ILO/OSH-MS 2001).<br />

Our Group-wide Health & Safety unit combines all health management functions. To support its activities, all<br />

<strong>Daimler</strong> companies carefully document their accident rates and sickness figures. Current plans call for the Group<br />

to produce the first standardized key figures concerning occupational health and safety <strong>by</strong> the end of 2008. In<br />

2007, the share of employees in Germany who did not miss a single day through illness remained at 36 percent.<br />

The sickness rate for the entire workforce was 4.5 percent (hourly employees: 5.4 percent; salaried employees:<br />

2.7 percent).<br />

Health management. In a nationwide study of occupational health management systems in Germany, carried out<br />

in 2007 <strong>by</strong> the market research firm EuPD Research in cooperation with Handelsblatt magazine, <strong>Daimler</strong> was<br />

found to have the best health management program of all manufacturing companies in the country. Our<br />

exemplary health management system was also honored with the “Company Health Award” <strong>by</strong> the Move Europe<br />

campaign and we continue to work with various universities and institutions in order to expand our lead in health<br />

management.<br />

We are currently restructuring our international health management activities, where<strong>by</strong> a new holistic approach<br />

for production locations worldwide is enabling us to not only exchange best practices but also to conduct<br />

performance assessments based on uniform criteria.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Occupational health and safety<br />

Health management activities<br />

Protecting the health of non-smokers was a major health management issue at <strong>Daimler</strong> in 2007. As part of an<br />

agreement reached between the Board of Management and the General Works Council, smoking is now banned<br />

in all Group buildings, making <strong>Daimler</strong> a pioneer in the battle against second-hand smoke. We provide outdoor<br />

shelters for smokers to use in inclement weather; and as stipulated <strong>by</strong> German law, no one under the age of 18<br />

may smoke within the perimeter of any <strong>Daimler</strong> facility. Smokers who wish to quit can receive help from staff at<br />

plant medical centers – a service that many employees are now taking advantage of.<br />

The importance of occupational health and safety at <strong>Daimler</strong> AG is reflected <strong>by</strong> the fact that more than 250<br />

employees and managers participated in the 2007 Health & Safety Forum in Stuttgart. Speaking at the event,<br />

<strong>Daimler</strong> Chairman Dieter Zetsche stressed the crucial role played <strong>by</strong> occupational health and safety at the<br />

company. Human Resources head Günther Fleig was on hand to present the Group’s Health & Safety Award to<br />

the Ludwigsfelde plant. The forum’s program also included a mixture of presentations, discussions with health<br />

and safety experts, a health and safety marketplace, and <strong>report</strong>s on actual programs. Participants were thus able<br />

to learn how experts from Health & Safety provide assistance and support at Group locations.<br />

Facts and figures on health care<br />

Proportion of first-aid trainees approx. 4 percent<br />

Safety officers 2.1 percent<br />

SG Stern, <strong>Daimler</strong> sport association 33,000 members<br />

772,000 participants<br />

Social counseling contacts approx. 4,600<br />

Preventive medical check-ups<br />

<strong>by</strong> the corporate medical service approx. 47,000<br />

Offers for health training courses<br />

shift workers 1,296<br />

management staff 645<br />

senior management staff 140<br />

Offers for periods of preventive care treatment<br />

shift workers 250<br />

management staff 200<br />

senior management staff 50<br />

Incidence of accidents and accident-related costs


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Occupational health and safety<br />

Occupational accidents. We have significantly reduced the number of accidents in Germany over the past few<br />

years. Despite numerous production start-ups, which involve new processes and therefore a higher risk of<br />

accidents, the figure for accidents in 2007 was once again slightly lower than in the prior year. Further<br />

information on other focal points for occupational health and safety can be found in the diagram.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Occupational health and safety / Health<br />

& Safety Report*<br />

Health & Safety Report*<br />

Our annual “Health & Safety Report” provides detailed information about our occupational safety and health<br />

protection activities. The publication contains all the important health-related statistics for last year, coverage of<br />

Group-wide measures and programs, and <strong>report</strong>s from the national subsidiaries.<br />

� Health & Safety Report 2007 (PDF, 2 MB)<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Occupational health and safety /<br />

Preventing accidents with EVA*<br />

Preventing accidents with EVA*<br />

Studies have shown that most accidents at work result from incorrect behavior on the part of employees rather<br />

than technical errors. To help prevent this type of accidents, <strong>Daimler</strong> has developed a program known as<br />

“Changing Attitudes and Behavior to Ensure Work Safety” (German acronym: EVA). The program has already<br />

been successfully implemented in Hamburg, Sindelfingen, and Untertürkheim, and we are gradually establishing<br />

it as the standard for all of our plants in Germany. EVA is based on the well-known safety principles of<br />

prevention, inspections, standards, management culture, attitudes, and behavior.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Occupational health and safety /<br />

Activities against HIV/AIDS*<br />

Our activities against HIV/AIDS at our<br />

national subsidiaries*<br />

The fight against HIV/AIDS<br />

<strong>Daimler</strong> has been actively involved in the fight against HIV/AIDS since the early 1990s. Cooperation with a South<br />

African regional chamber of commerce and Germany’s DEG development agency has enabled us to persuade<br />

many medium- sized companies to participate in our HIV/AIDS initiatives in South Africa. The fight against<br />

HIV/AIDS also continues in Germany, where information on AIDS forms part of the curriculum in all training<br />

programs.<br />

Activities at our national subsidiaries<br />

In 1991, <strong>Daimler</strong> South Africa paved the way <strong>by</strong> drawing up a guideline that recognizes HIV/AIDS as a workplace<br />

issue and protects those infected <strong>by</strong> the disease from discrimination. Since 2005, activities at our subsidiaries<br />

have been based on Group-wide global guidelines, where<strong>by</strong> we employ three different approaches: In those<br />

countries that have experienced only a moderate outbreak of the disease, our work focuses on education and<br />

sensitization; in countries where HIV/AIDS is on the rise, we seek to prevent it from spreading even further; in<br />

countries where HIV/AIDS is widespread, we have implemented extensive workplace programs.<br />

Within the framework of this approach, we launched various activities at our subsidiaries in 2007 that ranged<br />

from lectures on the disease to the provision of medical consultation services for those who have become<br />

infected. Efforts at our subsidiaries in Brazil and Spain also focus on employees’ family members, and in Malaysia<br />

even extend to our suppliers. The instruments we employ in our efforts include information material that is made<br />

available at numerous subsidiaries. In Brazil, India, Malaysia, and Thailand, we organize information sessions and<br />

workshops. We also distribute free condoms in Thailand, and a week before Brazil’s annual Carnival festival, we<br />

conducted a campaign on HIV/AIDS prevention. In addition, subsidiaries in India, Thailand, and Malaysia are<br />

cooperating with external partners such as NARI SAHARA AALHAD, the Thailand Business Coalition on AIDS<br />

(TBCA), and the Malaysian AIDS Foundation.<br />

At the end of 2007, we successfully launched the SIYAKHANA project in South Africa following an 18-month pilot<br />

phase. The project is now being implemented at 17 companies, where it has reached 26,000 men and women.<br />

SIYAKHANA — a public-private partnership initiated <strong>by</strong> <strong>Daimler</strong> — is designed to reduce the prevalence of HIV in<br />

small and medium-sized companies and to improve the lives of the people who work there. The project is based<br />

on a workplace program that’s been in place at Mercedes-Benz’ East London plant since 2001. The experience<br />

thus gained through that project is now being put to work <strong>by</strong> <strong>Daimler</strong> to help other companies in the region.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Diversity<br />

Diversity management at <strong>Daimler</strong><br />

As a globally operating company, <strong>Daimler</strong> values the diversity of its employees and the variety of their personal<br />

skills, talents, and capabilities. Since 2005, the Group has pursued a diversity management approach designed<br />

to exploit employee differences and variety for the success of the company. <strong>Daimler</strong> aims to become one of the<br />

most highly respected automakers with regard to diversity and inclusion management <strong>by</strong> 2010. Our immediate<br />

objective in Germany is to increase the proportion of women in management positions. We’re utilizing a large<br />

range of measures here. For example, we’ve conducted diversity workshops for more than 1,500 managers since<br />

2006, we currently have mentoring programs for 200 female participants, and we seek to promote women to<br />

management positions in numbers defined <strong>by</strong> firm target corridors (see table).<br />

Proportion of women employees at <strong>Daimler</strong> AG<br />

in % Dec. 31, 2006 Dec. 31, 2007 Target corridor of the<br />

previous company agreement<br />

(2000 – 2005)<br />

Target corridor of the new<br />

company agreement<br />

(2006 – 2010)<br />

Workforce 12 12 12.5 – 15 12.5 – 15<br />

White - collar 24 24 – –<br />

Trainees 19 19 18 – 20 20 – 24<br />

Commercial-technical apprentices 11 11 09 – 11 11 – 14<br />

Level 4 management 10 11 08 – 12 10 – 14<br />

Diversity masterplan and measures


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Diversity / Diversity management activities*<br />

Diversity management activities*<br />

Diversity and AGG workshops. Since 2006, some 1,500 managers have attended mandatory workshops on<br />

diversity management and Germany’s General Equal Treatment Act (AGG). Among other things, the workshops<br />

present diversity management as a business issue. We at <strong>Daimler</strong> are dedicated to achieving a broad<br />

understanding of diversity throughout the Group, because we are aware that the creativity and abilities of all our<br />

employees are essential to our long-term business success. <strong>Daimler</strong> managers have also become acquainted<br />

with the principles and goals of diversity management in the five diversity conferences that have been held to<br />

date <strong>by</strong> both HR units and the divisions.<br />

Flexible work. Flexible work models are becoming increasingly important in the competition to obtain the most<br />

talented employees. We already utilize a variety of work time models and are now cooperating more closely with<br />

the business units to further increase the acceptance of such flexible setups. Studies have shown that the ability<br />

to alter work time through mobile working, part-time work, or job sharing increases employee efficiency.<br />

Mentoring programs for women in managerial positions. The TANDEM mentoring program has been available to<br />

assist female managers at various hierarchical levels since 2007. Nearly 200 women are now taking advantage<br />

of the opportunity the program offers them to discuss Group-specific topics, and personal and professional<br />

development with an experienced executive from a unit other than their own.<br />

Increasing the proportion of women in management positions. The selection of candidates to fill vacant<br />

management positions, as well as the professional development of managers, is governed <strong>by</strong> the Aspirational<br />

Guidelines — a set of voluntary annual targets agreed on <strong>by</strong> the divisions for increasing the proportion of women<br />

in management positions. At the Group level, we are striving to achieve an annual increase of one percentage<br />

point each year. Women currently account for approximately 7.5 percent of all managers at the Group worldwide.<br />

The Group-wide “General Works Council Agreement on the Promotion of Women” also sets targets to be<br />

achieved <strong>by</strong> 2010 (see table).<br />

Childcare at <strong>Daimler</strong>. The <strong>Daimler</strong> Board of Management has authorized the creation of daycare facilities near<br />

Group locations <strong>by</strong> 2009, to provide services for up to 350 employee children. In addition to meeting currently<br />

valid quality standards for preschool education, these daycare centers must also offer a dual language program<br />

and extremely flexible opening hours and registration processes. Such sternchen (“Little Star”) centers have<br />

already been opened in Wörth, Untertürkheim, Bremen, and Sindelfingen, and others will follow in 2008. <strong>Daimler</strong><br />

also offers employees spots for their children in external kindergartens, as well as short-notice daycare and<br />

alternative childcare services.<br />

Diversity Charter. In 2007, we also stepped up activities in Germany related to the Diversity Charta that we drew<br />

up in December 2006 with the German federal government, Deutsche Bank, Deutsche Telekom, and Deutsche<br />

BP. More than 200 companies, associations, municipalities, and clubs have since signed the Charta, there<strong>by</strong><br />

underscoring the economic and social significance of diversity.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Workforce and management relations / Diversity / Diversity strategy for procurement*<br />

Diversity strategy for procurement*<br />

In connection with our purchasing activities, it is important that we open up opportunities in the world’s markets<br />

to minority suppliers and disadvantaged social groups – and this objective has been secured in our internal goal<br />

agreements. <strong>Daimler</strong> has been cooperating successfully with workshops for the disabled for more than 30 years.<br />

In order to support the economic development of South Africa’s historically disadvantaged black population,<br />

<strong>Daimler</strong> is also continuing its strategy of “Broad-Based Black Economic Empowerment” (BBBEE) in conjunction<br />

with local suppliers. <strong>Daimler</strong> also expects its suppliers to increase their procurement volumes from minority-run<br />

companies.<br />

Placing orders with workshops for the disabled<br />

We placed orders with approximately 40 workshops for the disabled in 2007. Such orders include the production<br />

of Mercedes-Benz components and complete vehicle modules, the quality of which meet all requirements. We<br />

also purchased logistics services from our partner workshops. One of our main suppliers here is the<br />

Gemeinnützige Werkstätten und Wohnstätten GmbH (GWW) organization, which was founded in 1973. Of the<br />

1,200 people employed <strong>by</strong> GWW in 2007, approximately 180 worked on orders for <strong>Daimler</strong> products.<br />

Black economic empowerment<br />

To promote the economic development of South Africa’s historically disadvantaged black population in a<br />

sustainable manner, <strong>Daimler</strong> South Africa is continuing its strategy of “Broad-Based Black Economic<br />

Empowerment (B-BBEE)” in conjunction with local suppliers. Activities in 2008 will focus on implementing the<br />

new B-BBEE Codes mandated <strong>by</strong> the South African government last year into an integrated approach. <strong>Daimler</strong><br />

South Africa’s primary goal here is to continually help foster economic growth and stability in the country and<br />

surrounding region.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Human rights<br />

Human rights<br />

<strong>Daimler</strong> is committed to upholding human rights, which is why we support the proliferation of such rights<br />

wherever possible and allow human rights issues to influence investment decisions. Reference texts include the<br />

ILO’s Tripartite Declaration Concerning Multinational Enterprises and Social Policy as well as the OECD<br />

Guidelines. Much of the content of these documents has been adopted in <strong>Daimler</strong>’s own guidelines for<br />

conducting business. Such content can also be found in our Integrity Code and Principles of Social<br />

Responsibility. In addition, <strong>Daimler</strong> is a signatory to the ten principles of the Global Compact.<br />

Our suppliers need to act in an ethically correct manner as well. That’s why the global <strong>Daimler</strong> supplier portal<br />

contains our Environmental Guidelines, Principles of Social Responsibility, Integrity Code, and other information<br />

related to compliance issues. We realize that much work still needs to be done to raise awareness of human<br />

rights in many regions of the world, and that we must insist upon adherence to our social policy standards.<br />

<strong>Daimler</strong> cooperates with partners such as the World Employee Committee to rectify any human rights violations.<br />

We also plan to work with other automakers to develop effective guidelines for the supplier sector.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Human rights / Standards, principles, and guidelines*<br />

Standards, principles, and guidelines*<br />

Principles of Social Responsibility<br />

With the introduction of its Principles of Social Responsibility in 2002, <strong>Daimler</strong> committed itself to upholding the<br />

Global Compact Principles and therefore to protecting human rights worldwide. These principles, which were<br />

approved <strong>by</strong> the World Employee Committee, also set binding standards for basic workers' rights throughout our<br />

company worldwide. In early 2008, we augmented the principles to cover our relations with sales partners. As a<br />

result, we now expect our partners to introduce similar principles and adhere to them.<br />

The brochure on the Principles of Social Responsibility is currently being updated. Here's the text of the brochure<br />

published in 2003.<br />

Prologue<br />

The process of globalization offers companies and their employees enormous opportunities and challenges.<br />

Forming the globalization process is a task of all those involved in a company. Corporate management and the<br />

World Employee Committee want to give globalization a human face. <strong>This</strong> will happen last but not least <strong>by</strong><br />

creating and maintaining employment and working conditions that secure livelihood and respect human dignity.<br />

In September 2002 corporate management and the World Employee Committee agreed with each other on this<br />

mutual understanding and the principles of social responsibility at <strong>Daimler</strong>Chrysler. The principles of social<br />

responsibility at <strong>Daimler</strong>Chrysler are fully in line with the initiative of UN Secretary-General Kofi Annan for a<br />

Global Compact and continue to apply them at a corporate level. In the principles of social responsibility<br />

<strong>Daimler</strong>Chrysler is committed to the compliance with human rights worldwide and sets standards for basic<br />

employees' rights. Human rights and basic employees' rights are not only respected within the company.<br />

Compliance with these rights is also expected from the business partners that are associated with<br />

<strong>Daimler</strong>Chrysler. Implementation of the principles of social responsibility in practice is our most important goal.<br />

We are asking all of our employees and managers in our worldwide Group and our business partners and<br />

government and non-government organizations for their support.<br />

Stuttgart, July 2003<br />

<strong>Daimler</strong>Chrysler (Board of Management)<br />

Jürgen E. Schrempp<br />

Günther Fleig<br />

World Employee Committee<br />

Erich Klemm<br />

Nate Gooden


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Human rights / Standards, principles, and guidelines*<br />

Preamble<br />

<strong>Daimler</strong> acknowledges its social responsibility and the nine principles that form the basis of the Global Compact.<br />

In order to achieve these shared goals, <strong>Daimler</strong> has agreed upon the following principles with the international<br />

employee representatives.<br />

We support the United Nations' initiative and want to work with other companies and institutions to prevent the<br />

irreversible process of globalization from causing fear and alarm among the people all over the globe; we want to<br />

show the human face of globalization, among other things <strong>by</strong> creating and preserving jobs.<br />

We are convinced that social responsibility is an important factor for the long-term success of our company. <strong>This</strong><br />

also applies to our shareholders, business partners, customers and employees. Only then can we contribute<br />

towards world peace and prosperity in the future.<br />

Heeding this responsibility, however, requires that we be competitive and remain so in the long term. Taking<br />

social responsibility is indispensable for a value-based company management.<br />

The following principles, that are orientated at the conventions of the International Labor Organization, have<br />

been implemented <strong>by</strong> <strong>Daimler</strong> worldwide, and in establishing them, diversity in culture and social values have<br />

been duly acknowledged and heeded<br />

Human Rights<br />

<strong>Daimler</strong> respects and supports compliance with the internationally accepted human rights.<br />

� Forced Labor<br />

<strong>Daimler</strong> condemns all forms of forced and compulsory labor.<br />

� Child Labor<br />

<strong>Daimler</strong> supports the effective abolition of exploitative child labor.<br />

Children must not be inhibited in their development. Their health and safety must not be adversely affected.<br />

Their dignity must be respected.<br />

� Equal opportunities<br />

<strong>Daimler</strong> undertakes to uphold equal opportunities with respect to employment and to refrain from<br />

discrimination in any form unless national law expressly provides for selection according to specific criteria.<br />

Discrimination against employees based on gender, race, disability, origin, religion, age or sexual orientation<br />

is not acceptable<br />

� Equal pay for work of equal value<br />

Within the scope of national legislation, <strong>Daimler</strong> respects the principle of "equal pay for work of equal value",<br />

e.g. for men and women.<br />

Relations with employees and employee representatives<br />

� <strong>Daimler</strong> acknowledges the human right to form trade unions. During organization campaigns the company<br />

and the executives will remain neutral; the trade unions and the company will comply with basic democratic<br />

principles and thus, they will ensure the employees can make a free decision. <strong>Daimler</strong> respects the right to<br />

collective bargaining.<br />

� Elaboration of this human right is subject to national statutory regulations and existing agreements. Freedom<br />

of association will be granted even in those countries in which freedom of association is not protected <strong>by</strong><br />

law.<br />

� Cooperation with employees, employees' representatives and trade unions will be constructive. The aim of<br />

such cooperation will be to seek a fair balance between the commercial interests of the company and the<br />

interests of the employees. Even where there is disagreement, the aim will always be to work out a solution<br />

that permits constructive cooperation in the long term.<br />

� It is the aim of the company to involve and inform the individual employees as directly as possible. Conduct<br />

towards and communication with employees shall be characterized <strong>by</strong> respect and fairness.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Human rights / Standards, principles, and guidelines*<br />

Working Conditions<br />

<strong>Daimler</strong> is opposed to all exploitative working conditions.<br />

� Protection of health<br />

<strong>Daimler</strong> ensures health and safety at the workplace to a level no less than required <strong>by</strong> national legislation<br />

and supports the continuous improvement of working conditions.<br />

� Compensation<br />

<strong>Daimler</strong> honors the right to reasonable compensation of a level no less than the legally established minimumwage<br />

and the local job market.<br />

� Working hours<br />

<strong>Daimler</strong> guarantees compliance with national provisions and agreements regarding working hours and<br />

regular, paid holidays.<br />

� Training<br />

<strong>Daimler</strong> supports training of employees with the aim of good performance and high quality work.<br />

� Suppliers<br />

<strong>Daimler</strong> supports and encourages its suppliers to introduce and implement equivalent principles in their own<br />

companies. <strong>Daimler</strong> expects its suppliers to incorporate these principles as a basis for relations with <strong>Daimler</strong>.<br />

<strong>Daimler</strong> regards the above as a favorable basis for enduring business relations.<br />

Implementation Procedure<br />

These principles are binding upon <strong>Daimler</strong> throughout the world. For all employees, including executives, the<br />

principles will be set down in the Integrity Code and then implemented.<br />

These principles will be made available to all employees and their representatives in an appropriate form. The<br />

methods of communication will be previously discussed with the employee representatives.<br />

The senior managers of each business unit are responsible for ensuring compliance with these principles; they<br />

will take appropriate measures in respect of implementation. They will designate contacts to whom business<br />

partners, customers and employees can turn in case of difficulty. Any complaint brought to the managers'<br />

attention in this way shall not result in adverse consequences for the complainant.<br />

Corporate Audit will also examine compliance with these principles in its reviews and will include them in the<br />

audit criteria. In addition, Corporate Audit has established a general open line. <strong>This</strong> shall be the point to accept<br />

allegation of non-compliance with these principles at a decentralized level. Upon indication of violation,<br />

Corporate Audit will take appropriate action.<br />

The corporate management will regularly <strong>report</strong> to and consult with the international employee representatives<br />

on social responsibility of the company and the implementation of these principles.<br />

<strong>This</strong> agreement was signed <strong>by</strong> corporate management and the World Employee Committee - also on behalf of the<br />

International Metalworkers' Federation (IMF) - in September 2002.<br />

Points of contact for questions, complaints or in cases of non-compliance with these principles:<br />

Stuttgart - Business Practices Office<br />

<strong>Daimler</strong> AG,<br />

HPC: CA, Z133, D-70546 Stuttgart<br />

Phone: +49 (0)711/17-9 65 28 or 0 800/2 89 46 43<br />

Fax: +49 (0)711/17-79 05 43 23<br />

Email: Extern<br />

BPO.Germany@daimler.com Intern<br />

BPO Germany Pool-ID/096/DCAG/DCX<br />

Internet<br />

www.<strong>Daimler</strong>.com/go/csr_e<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Activities and goals<br />

Activities and goals<br />

Our responsibility as an employer: Acitivities and goals<br />

As a globally operating automotive Group, we are active in an international marketplace that presents a broad<br />

spectrum of challenges. We have to act, for example, in the best interests of our more than 272,000 employees<br />

worldwide, who are committed to our company and have invested their trust in <strong>Daimler</strong> as an employer.<br />

The development of our workforce is a key element for <strong>Daimler</strong> – and we invest in it on a grand scale. If we<br />

succeed in further developing our employees’ skills and intercultural and personal expertise in line with our<br />

needs and with the trends of the future, we will remain competitive and successful.<br />

One important area of activity for <strong>Daimler</strong> as an employer is diversity, which must be dealt with in an<br />

unprejudiced – and thus productive – manner. Another one involves the challenges arising from demographic<br />

change, where we are adopting a more targeted approach to the different age groups in our workforce (age<br />

management). In addition, as an employer, <strong>Daimler</strong> also has a special responsibility for occupational health and<br />

safety.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Activities and goals<br />

By 2010, <strong>Daimler</strong> aims to be one of the most highly respected automakers in the areas<br />

of diversity and inclusion management.<br />

Goals Activities/status Goal attainment Link<br />

Using the CAReer<br />

program to ensure that<br />

enough young people are<br />

attracted to the company;<br />

targeted recruiting of<br />

women<br />

Increasing the proportion<br />

of women in top<br />

management positions<br />

Group-wide <strong>by</strong> 1 percent<br />

annually<br />

Increasing the proportion<br />

of women in mid-level<br />

management positions<br />

Increasing the proportion<br />

of women in the<br />

workforce as a whole<br />

Improving the ability to<br />

balance the demands of<br />

career and family<br />

Thanks to our CAReer training program, which was launched<br />

throughout the Group in 2007, we have created 300 new positions,<br />

30 percent of which are occupied <strong>by</strong> women. We plan to offer 500<br />

trainee positions worldwide in 2008, 35 percent of which are to be<br />

occupied <strong>by</strong> women.<br />

Our most important measures:<br />

� Mentoring programs: <strong>by</strong> consulting with experienced managers,<br />

women in management positions can gain the knowledge they<br />

need to advance personally and professionally.<br />

� Diversity workshops for raising the awareness of all managers.<br />

It is important for male and female managers alike to have a<br />

greater awareness of diversity issues.<br />

The share of women in mid-level management positions (Level 4) was<br />

increased <strong>by</strong> about 1 percent to nearly 11 percent in 2007 compared<br />

to the figure for the previous year. In addition to the aforementioned<br />

measures, target values were agreed upon with the General Works<br />

Council. According to the terms of this new agreement (for the<br />

period 2006 to 2010) the proportion of women should be between<br />

10 and 14 percent <strong>by</strong> 2010.<br />

Overall, the proportion of women in the total workforce and among<br />

trainees and salaried employees remained stable compared to the<br />

level of the previous year (total workforce: 12 percent, trainees: 19.5<br />

percent). See the measures above. Target corridors according to the<br />

new works agreement (2006 – 2010): total workforce: 12.5 –15<br />

percent; trainees 20 – 24 percent; technical apprentices: 11–14<br />

percent.<br />

Boosting the Group’s attractiveness as an employer<br />

<strong>Daimler</strong> aims to move from a fifth<br />

place ranking to fourth place among<br />

engineering graduates, and from a<br />

tenth place ranking to eighth place<br />

among business graduates.<br />

� Creation of daycare openings for 350 children at <strong>Daimler</strong>’s<br />

location in Germany in 2008.<br />

� Providing flexible work models.<br />

Greater focus on target group-specific appeals and<br />

marketing events in areas of concrete needs. Plans call<br />

for measures including a new personnel image<br />

campaign, an expansion of in-house recruiting events,<br />

and a higher profile in media coverage.<br />

New Goal Link<br />

Goal still applies Link<br />

Goal still applies<br />

Goal still applies Link<br />

Goal still applies Link<br />

Goals Activities/status Goal attainment Link<br />

Link


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Activities and goals<br />

Responses to demographic change<br />

Goals Activities/status Goal attainment Link<br />

Targeted career<br />

development for older<br />

employees<br />

Targeted HR planning<br />

of assignments for<br />

older employees<br />

Greater transparency<br />

and optimal<br />

coordination of<br />

existing and future<br />

HR needs<br />

Forward-looking<br />

planning for training<br />

and specialist<br />

personnel<br />

Stronger focus on the<br />

issue of<br />

demographics in the<br />

management process<br />

Implementation of a catalogue of activities as part of the Aging Workforce<br />

initiative<br />

Integration of older employees in the existing processes <strong>by</strong> assessing<br />

employment opportunities that take aging aspects into account. Initial<br />

analyses and evaluations in 2008, as well as gradual implementation at<br />

all locations.<br />

As part of the HR Resource Management Project, which was launched in<br />

2007 at the Wörth, Mannheim, and Bremen locations, existing employee<br />

skills are evaluated in comparison with future workplace needs. Results<br />

from the analyses of the pilot plants are now available. These results<br />

served as a basis for measures designed to ensure a forward-looking<br />

approach to demographic challenges. Decisions regarding<br />

implementation are slated for the second quarter of 2008.<br />

Launch of a pilot project at the Untertürkheim plant; evaluation <strong>by</strong> March<br />

2008, followed <strong>by</strong> a decision regarding an expansion to other locations.<br />

Inclusion of the demographics topic in management discussions, for<br />

example concerning performance appraisal (NAVI) and qualifications.<br />

Definition of the prerequisites in the first half of 2008.<br />

Goal still applies Link<br />

Goal still applies<br />

Goal still applies Link<br />

Goal still applies Link<br />

New Goal Link


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / Activities and goals<br />

Occupational health and safety<br />

Goals Activities/status Goal attainment Link<br />

Improving Group-wide control of<br />

health and safety management<br />

Ensuring Group-wide<br />

compliance with country-<br />

specific requirements for<br />

occupational health and safety<br />

management<br />

Introduction of a Group-wide<br />

accident <strong>report</strong>ing system<br />

Smoke-free workplace<br />

guarantee<br />

Preventing particularly frequent<br />

types of accident<br />

Continuing commitment to the<br />

struggle against HIV/AIDS<br />

Development of standardized<br />

integration management<br />

In 2007 the Health & Safety activities were combined in an<br />

organizational unit of the same name.<br />

Improved control and a better basis for comparison are to be<br />

achieved <strong>by</strong> using and adopting best practices in Health &<br />

Safety. Plans call for an analysis and planning phase in 2008.<br />

Definitions concerning accident statistics (database, basis for<br />

calculations) are to be determined. Initial data collection<br />

measures are scheduled for the pilot areas at Mercedes-Benz<br />

U.S. International and Mercedes-Benz South Africa <strong>by</strong> the end<br />

of 2008.<br />

Management and the General Works Council agreed to<br />

implement a general smoking ban in all <strong>Daimler</strong> AG buildings,<br />

effective September 1, 2007.<br />

Implementation of the program “Changes in attitude and<br />

behavior for ensuring work safety” (EVA) at selected<br />

production locations in Germany <strong>by</strong> 2008/2009.<br />

Overall approach and activities of the national subsidiaries in<br />

2007:<br />

� in countries where there is a moderate rate of infection:<br />

concentration on education and raising awareness<br />

� in countries where the rate of infection is on the rise:<br />

concentration on prevention<br />

� in countries where there is a high rate of infection: a<br />

comprehensive workplace program<br />

Concept for optimizing the assignment of employees with<br />

health problems (comparison of the job requirement profiles of<br />

the workplaces and the abilities profiles of the employees =<br />

profile comparison process)<br />

Goal attained Link<br />

New Goal Link<br />

Goal still applies<br />

Goal attained Link<br />

Goal still applies Link<br />

Goal still applies Link<br />

Goal still applies


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / External statement<br />

External statement<br />

<strong>Daimler</strong>’s responsibility to its employees. The <strong>Daimler</strong> AG Board of Management believes the Group’s business<br />

objectives can also be partially achieved <strong>by</strong> reducing personnel costs in order to increase productivity. The<br />

design of the programs developed to this end – Safeguarding the Future 2012, CORE, and New Management<br />

Model (NMM) – reflect the sense of responsibility the company has toward its employees. The extent of this<br />

responsibility is documented <strong>by</strong> the job security situation at the Group, as demonstrated <strong>by</strong> its pledge not to lay<br />

off employees for business reasons before December 31, 2011. It is also reflected <strong>by</strong> the income security that<br />

has been granted to the Group’s core workforce. Nevertheless, some of the measures implemented <strong>by</strong> the Group<br />

are problematic from a labor point of view.<br />

For example, following workforce reductions and the associated higher demands placed on staff in terms of<br />

working hours and performance, it appears that the potential to further reduce personnel costs is limited,<br />

particularly as the volume of work remains high. The expanded use of flexibility instruments here could negatively<br />

affect employee motivation and product quality. The limitations placed on temporary work and shortterm<br />

employment contracts should be supplemented <strong>by</strong> limits on the utilization of outside companies.<br />

The introduction of the new uniform collective framework agreement (ERA) has redefined salary and wage<br />

groups. A portion of the workforce perceived this process and its results as an expression of a decline in<br />

management’s appreciation of their work – despite an agreement with the General Works Council that no<br />

employee would experience a loss of income. The results of the paygrade assignments led to a large number of<br />

employee complaints, most of which have been dealt with <strong>by</strong> now.<br />

The specific targets for the workforce reductions, coupled with <strong>what</strong> in some cases were multiple offers to staff<br />

members to voluntarily leave the company, were taken <strong>by</strong> employees as a sign that they were becoming<br />

“redundant” and “superfluous.” According to the General Works Council, this attitude could lead to lower<br />

motivation and reduced feelings of identification with the company. A credible display of appreciation of its<br />

employees would be in the interest of the Group in terms of its business success. Human resources planning<br />

should therefore be geared more toward the long term and the goal of keeping workforce levels constant, rather<br />

than simply acting as a response to short-term business cycles.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Employees / External statement<br />

In 2002, the World Employee Committee, the International Metalworkers’ Federation, and <strong>Daimler</strong> AG agreed on<br />

the “Principles of Social Responsibility,” which include obligations to suppliers and dealerships. A total of 16<br />

complaints regarding violations of these principles has been lodged since that time, where<strong>by</strong> the General Works<br />

Council <strong>report</strong>s that 14 of these have been satisfactorily settled. Two recent complaints are still being<br />

addressed. Although the Principles of Social Responsibility are based on the Global Compact and ILO<br />

conventions, the loose formulation of the principles appears to pose a problem. A special review of how to<br />

adhere to the principles and the obligations they stipulate toward second and third tier suppliers has yet to be<br />

conducted. The approach to be taken in countries that deny workers the right to organize in trade unions<br />

represents another key challenge.<br />

<strong>Daimler</strong> is addressing these issues <strong>by</strong> negotiating to join the Automotive Industrial Action Group, which, for<br />

example, offers training programs for suppliers in emerging markets. <strong>Daimler</strong> has also been working with other<br />

European automakers since summer 2007 to develop uniform CSR standards for the entire supply chain.<br />

Employee representatives must be included in these processes, as they helped develop the principles in the first<br />

place.<br />

Dr. Beate Feuchte<br />

Düsseldorf, May 2008<br />

Dr. Beate Feuchte is an academic consultant of the Hans Böckler Foundation’s CSR project team.<br />

The Hans Böckler Foundation deals with co-determination, research linked to the world of work, and the support of students<br />

on behalf of the Confederation of German Trade Unions (DGB). The foundation promotes co-determination as a key principle<br />

of a democratic society and seeks to expand the scope of co-determination wherever possible.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society<br />

Customers and society. <strong>Daimler</strong> views itself as an active member of society, which is<br />

why our commitment to our customers, neighbors, and other groups is geared toward<br />

their long-term satisfaction and well-being.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Customers / Customer relations<br />

Improving and maintaining customer<br />

relations<br />

Focus on the customer at <strong>Daimler</strong><br />

Customer satisfaction is a key corporate goal at <strong>Daimler</strong>. Accordingly, the wishes of customers are taken into<br />

consideration throughout the entire product cycle – from product development right up to the environmentally<br />

compatible disposal and recycling of end-oflife vehicles. Through its customer relationship management (CRM)<br />

system, the Group has created an effective framework and developed key figures for customer satisfaction<br />

evaluation.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Customers / Mercedes-Benz und smart<br />

Managing customer relations at Mercedes-<br />

Benz and smart<br />

Integrated customer relationship management at Mercedes-Benz and smart sets out to win over new customers<br />

and to maintain the loyalty of existing customers over the long term. Of particular importance here is the<br />

development of an emotional bond on the part of the customer that goes beyond simple fascination for the<br />

vehicle. To this end, <strong>Daimler</strong> has introduced worldwide discussion programs that take into account individual<br />

customer requirements and preferences to an even greater extent.<br />

In August 2006, we therefore launched the “CSI No. 1” program in order to systematically ensure customer<br />

satisfaction in sales and aftersales through targeted monitoring. The name “CSI No. 1” is derived from the term<br />

Customer Satisfaction Index. Our objective with the program is to attain the top position for customer<br />

satisfaction in the premium segment <strong>by</strong> the end of this decade.<br />

CSI No. 1 groups together all initiatives that improve customer care in direct contact – i.e. where the customer<br />

can best experience personal appreciation – or <strong>by</strong> <strong>means</strong> of support in systems and processes.<br />

Standards of conduct have been defined, for example, for customer care and for making contact with customers<br />

in sales (e.g. test drives, aftersales customer care) and in service (e.g. service orders, service follow-up). In<br />

addition to sustainable process and system optimization (such as the integration of all customer contacts in a<br />

uniform customer database), the focus here is on long-term ongoing training for all employees who have contact<br />

with customers. During the CSI No. 1 program’s initial phase, more than 35,000 management employees and<br />

staff from sales and service units took part in training sessions dealing with customer satisfaction topics. We<br />

also offer dealers onsite consulting to ensure a sustained focus on the customer.<br />

Securing the top position in the premium segment is an ambitious goal. In order to achieve it, Mercedes- Benz<br />

already commissions regular audits <strong>by</strong> external and internal reviewers, and measurement and controlling<br />

methods for CSI No. 1 are also all standardized. Depending on the initial situation and national requirements, a<br />

market-specific CSI schedule is drawn up from a number of individual measures, and its implementation is then<br />

monitored.<br />

Since the launch of CSI No. 1, we have succeeded in substantially improving our competitive position in sales in<br />

nearly all markets. In the U.S., for example, <strong>Daimler</strong> made a sharp improvement in the rankings of a very<br />

important comparative study, moving from 10th to 5th place. We also performed extremely well in similar studies<br />

in Japan (2nd place) and China, where we finished number one.<br />

A comparative analysis of CSI figures for Mercedes- Benz aftersales service also shows improvement in customer<br />

satisfaction. Mercedes-Benz has moved up from 8th to 3rd place in passenger car aftersales service rankings in<br />

South Africa, and the brand has also secured 2nd place in Japan, despite more intense competition in that<br />

country. Mercedes-Benz’ aftersales service in the Czech Republic improved from 4th to 1st in rankings in that<br />

country, while Mercedes-Benz Turkey rose four slots in its customer service rankings to reach 2nd place.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Customers / Mercedes-Benz trucks<br />

Customer relationship management for<br />

Mercedes-Benz trucks<br />

These days, a decisive portion of a transport operator’s investment comprises expenditure on the purchase and<br />

operation of a truck. In addition to the price of a vehicle, purchasing decisions are therefore influenced <strong>by</strong><br />

running costs and resale value. Emotional factors such as brand image, service quality, and a customer-friendly<br />

attitude also play a major role here, despite the fact that a truck is basically a capital good.<br />

Another crucial factor is the sum of all costs incurred throughout the vehicle’s lifecycle (total cost of ownership).<br />

As a result, customers will only accept those manufacturers as partners who can show that an investment in<br />

their vehicle will be an economical one, and who can make offers precisely tailored to individual customer needs.<br />

In comparison with competitor brands, Mercedes-Benz offers a product and service range of unparalleled<br />

diversity for all types of customer requirements. Reliable technology, long maintenance intervals, and a versatile<br />

range of services make for optimum vehicle availability.<br />

All Mercedes-Benz trucks are fitted with fuel-saving BLUETEC technology, which has been shown to reduce<br />

costs, while at the same time lowering pollutant emissions. Trucks from Mercedes-Benz are also the market<br />

leaders in cab comfort and accident prevention, as they are equipped with assistance and safety systems that<br />

protect the driver, the vehicle, and its load, thus providing a stress-free atmosphere for truckers and a reduced<br />

risk of downtime.<br />

In addition, Mercedes-Benz Bank can provide tailormade financing and leasing packages to customers, while<br />

short-term requirements and order peaks can be addressed <strong>by</strong> renting vehicles from Mercedes-Benz CharterWay.<br />

Mercedes-Benz also offers special driver training courses for economical driving and resource conservation, and<br />

information and control instruments such as FleetBoard further enhance fuel economy and greatly facilitate<br />

vehicle fleet organization. CSI comparative analyses of aftersales activities at the Truck unit show improvement<br />

for Mercedes-Benz in countries such as Spain, where it now ranks 3rd.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Customers / Mitsubishi Fuso Truck & Bus Corporation<br />

Customer relationship management at the<br />

Mitsubishi Fuso Truck & Bus Corporation<br />

“All for you” – the new slogan for Mitsubishi Fuso Truck & Bus Corporation (MFTBC) – was presented for the first<br />

time at the Tokyo Motor Show in the fall of 2007. The slogan underscores our determination to make MFTBC the<br />

number one company for customer satisfaction in its market segment. In order to achieve this goal, MFTBC<br />

incorporates customer requirements into the development process for new models from the very beginning,<br />

there<strong>by</strong> ensuring that we can always offer the right products to those who need them. The products themselves<br />

are subjected to stringent quality checks within the framework of the Fuso Product Development System.<br />

Based on global standards from <strong>Daimler</strong>, this development system ensures punctuality and excellent quality.<br />

Following their purchase, customers are supported <strong>by</strong> a comprehensive service network, both in Japan and<br />

around the world. In Japan, Mitsubishi Fuso also offers mobile service repair shops known as “Moving Pits,” some<br />

100 of which are currently on the road to provide rapid assistance in the event of a breakdown. In October 2007,<br />

MFTBC restructured its sales organization in a manner that enables its 11 regional centers to implement brand<br />

initiatives more rapidly. The new structure also makes it easier to organize assignments at the 11 centers so as<br />

to ensure that service specialists are always available. For vehicle purchases, MFTBC Fuso Finance offers<br />

customized financing packages in cooperation with <strong>Daimler</strong> Financial Services.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Customers / <strong>Daimler</strong> Trucks North America<br />

Customer relationship management at<br />

<strong>Daimler</strong> Trucks North America<br />

<strong>Daimler</strong> Trucks North America provides its dealers with efficient instruments for managing their relationships<br />

with customers. The Webbased Retail Prospect Management System (RPM), for example, enables a uniform<br />

market presentation of the three brands operated <strong>by</strong> <strong>Daimler</strong> Trucks North America (DTNA): Freightliner,<br />

Sterling, and Western Star. The system helps dealers find potential new customers in their region, and to this end<br />

it includes various applications, sector information, and other market data, all of which support dealers with<br />

initial customer contacts, and also facilitate further planning.<br />

DTNA also incorporates important customers into critical phases of the product development process and works<br />

with them on testing new and updated models. Market launch of the Cascadia, the new heavy-duty Class 8<br />

flagship truck, was for example preceded <strong>by</strong> such tests, there<strong>by</strong> allowing us to better take customer wishes into<br />

consideration.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment<br />

Social commitment<br />

<strong>Daimler</strong> is a globally operating company, and we view this status as both an opportunity and an obligation to<br />

assume broad responsibility for society. Our objective here is to preserve an environment that helps foster<br />

dialogue and understanding in today’s globalized world in an atmosphere that allows us to create value for all of<br />

our stakeholders. To achieve this goal, we must, on the one hand, set clear Group-wide priorities, while at the<br />

same time responding in a flexible and sensitive way to special local and regional conditions. Because of the<br />

complex nature of this challenge, we focus on those activities where we can best put our knowledge and<br />

experience as a global automaker to work in a manner that will benefit society to the greatest extent possible.<br />

We work hard:<br />

� To support the locations where we are active. We seek to promote a greater sense of community, which is<br />

why we cooperate closely with local authorities and nonprofit organizations. We also get involved in different<br />

kinds of projects, such as those for expanding childcare centers located near our plants. <strong>Daimler</strong> will<br />

therefore provide around 350 additional daycare slots in Germany for children under three <strong>by</strong> 2009.<br />

� Together with our employees. <strong>Daimler</strong> knows it can count on the voluntary help of its employees in projects<br />

and programs like the “Day of Caring,” during which employees and managers helped renovate a youth<br />

center in Berlin, where<strong>by</strong> <strong>Daimler</strong> Financial Services paid for all materials. The “Moved <strong>by</strong> Ideas” program,<br />

with which the Mercedes-Benz Bank supports and promotes voluntary social activities <strong>by</strong> its employees in<br />

Germany, carried out 16 charitable projects at various locations.<br />

� In a social and humanitarian manner all over the world. Around the world – and even at home – there are<br />

people who suffer from poverty and illness, and who also often lack even the basic necessities of life. We try<br />

to help out where we can, and we’ve found we can be most effective in those communities where our<br />

production and service locations are situated and we are therefore familiar with the local situation. Our<br />

assistance takes the form of donations of both money and vehicles, and we also frequently participate in<br />

joint initiatives with partners from government, industry, and various associations.<br />

One of our main areas of activity involves the provision of immediate assistance in the event of natural or<br />

man-made disasters. Examples in 2007 included financial donations and the provision of vehicles following<br />

extensive flooding in Indonesia and Tabasco, Mexico, and a cyclone in Bangladesh. The sum of €130,000 –<br />

made up of € 80,000 from <strong>Daimler</strong> employees and a further € 50,000 from the company – was donated<br />

through the reconstruction foundation “<strong>Daimler</strong> hilft e.V.” to rebuild the School of Hope in Sri Lanka, which<br />

had been destroyed in the 2004 tsunami and was officially reopened in January 2007.<br />

� To promote education and training beyond the confines of our plants. Our support for education and training<br />

primarily takes the form of public-private partnerships. In 2007, we further expanded our training network in<br />

selected regions and staged, among other things, Girls’ Days and special “Children’s University” events.<br />

� To educate children about the dangers of road traffic. The MobileKids road safety initiative for children is<br />

based on the principle of learning through play. We established MobileKids in 2001 in cooperation with<br />

international road safety experts. The MobileKids program includes the 3D animated TV series “The<br />

Nimbols,” the online city “Mokitown,” and the MobileKids Tour. The latter is an entertaining roadshow whose<br />

patron is Helmut Rau, Minister of Education in the German state of Baden-Württemberg. During the 2007/08<br />

school year, the Mobile- Kids Tour stopped at 50 schools in Baden-Württemberg to visit third- and fourthgrade<br />

students.<br />

� For intercultural dialogue. As an internationally operating company, <strong>Daimler</strong> appreciates the importance of<br />

open relationships free of prejudices across all language and cultural barriers. It’s also true that such<br />

relationships are crucial to our business success. We therefore support projects that stimulate interest for<br />

other countries and establish a sense of cultural understanding, especially among young people. One of<br />

these is the Mondialogo initiative, which runs an international competition for school and university students.<br />

<strong>Daimler</strong> is also active in programs that provide stipends and exchange programs for gifted students.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment<br />

� To promote science and scientific exchange. It is very important to us to promote the transfer of knowledge<br />

between universities, research institutes, and industrial companies as a <strong>means</strong> of stimulating innovation. For<br />

many years, we have been one of the biggest supporters of the Donors’ Association of German Science, in<br />

which we maintain our own special <strong>Daimler</strong> Fund, which is used to endow, among other things, the German<br />

Future Prize, one of the most important scientific awards in Germany. Since 1986, we have also maintained<br />

the Gottlieb <strong>Daimler</strong> and Karl Benz Foundation to provide an interdisciplinary forum for addressing issues<br />

related to the interaction between mankind, the environment, and technology.<br />

� To promote culture and the arts. Art and culture are an important part of social life. That’s why <strong>Daimler</strong><br />

actively supports the fine arts, theater, music, literature, and film, and also organizes its own art and cultural<br />

events. Among other things, <strong>Daimler</strong> maintains one of the oldest and most im portant corporate art<br />

collections in Germany. We also present awards to up-and-coming artists and sponsor and otherwise<br />

financially support a variety of ensembles and cultural events, such as the Junge Musikpodium Dresden, the<br />

International Bach Academy in Stuttgart, the Ludwigsburger Schlossfestspiele, and the New Pop Festival in<br />

Rastatt.<br />

� To promote sports and physical fitness. Sports are not only good for one’s health; they also have a unique<br />

ability to bring people of the most diverse backgrounds together in friendly competition. <strong>Daimler</strong> therefore<br />

promotes athletic activities and projects on both the professional and private levels. The Group’s initiatives<br />

here include a Soccer Integra tion Award jointly presented <strong>by</strong> Mercedes-Benz and the German Football<br />

Association (DFB), a longstanding partnership with the International Olympic Committee, and support for the<br />

Laureus Sport for Good Foundation.<br />

� In various foundations. In order to ensure that our funding is used for clearly defined long-term purposes, we<br />

have established our own foundations in several countries. These foundations support diverse activities<br />

ranging from research and education to the promotion of culture, health, and international understanding. In<br />

several countries, our foundations serve as the centers for all activities related to social commitment (see<br />

table on p. 66).<br />

Foundations<br />

Foundation Focus of activities Funds 2007<br />

Gottlieb <strong>Daimler</strong> and Karl Benz Foundation<br />

(1986)<br />

<strong>Daimler</strong> Fonds im Stifterverband für<br />

die Deutsche Wissenschaft (1975)<br />

Funding science and research in the fields of<br />

mankind, environment, and technology<br />

Sponsoring the research, training and<br />

international collaboration of science<br />

and technology students<br />

<strong>Daimler</strong> Foundation in Japan (2002) Supporting cultural programs and<br />

philanthropic activities<br />

Mercedes-Benz France Foundation (1986) Promoting intercultural understanding between<br />

France and Germany, support for up-and-coming<br />

young artists, communal projects<br />

€1.5 million<br />

(2006: €1.2 million)<br />

€1.38 million<br />

(2006: € 2.2 million)<br />

¥ 25,000,000<br />

(2006: ¥ 29,300,000)<br />

€ 81,500<br />

(2006: €115,000)<br />

In 2007, we decided to reorganize our marketing practices to ensure a greater degree of social responsibility.<br />

Specifically, this <strong>means</strong> that instead of offering gifts to guests at vehicle presentations around the world, we will<br />

now donate the money we usually spend on such presents (approximately € 90,000) to non-profit organizations.<br />

The donation for 2008 will be given to education projects for SOS Children’s Villages in France, the U.S., Austria,<br />

and Germany.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

Our social and cultural projects*<br />

for our business locations:<br />

Expansion of daycare centers near our plants and offices<br />

The first four sternchen (“Little Star”) childcare centers in Stuttgart-Untertürkheim, Sindelfingen, Bremen, and<br />

Berlin opened successively beginning in September 2007. <strong>Daimler</strong> is cooperating in this initiative with both<br />

church-based and independent providers of daycare services. We also continue to expand the provision of<br />

company childcare centers for our employees. Childcare at the centers is offered in accordance with working<br />

times and the needs of parents, and all staff members are specially qualified to look after children up to three<br />

years of age. Among other things, the childcare concept employed focuses on the development of language skills<br />

through dual and multi-language instruction, while center activities are also designed to foster creativity and<br />

promote exercise and healthy eating habits.<br />

As part of its initiative to expand daycare services near its plants and offices, <strong>Daimler</strong> participated in a family<br />

policy conference organized <strong>by</strong> the city of Stuttgart on June 25 and 26, 2007, during which the European “cities<br />

for children” partnership network was established. The goal of this cross-border network is to develop holistic<br />

approaches for creating child and family-friendly environments in urban centers. <strong>Daimler</strong> is supporting “cities for<br />

children“ in various ways. <strong>This</strong> year, for example, the Group hosted the network’s annual meeting, which took<br />

place in May at the Mercedes-Benz Museum in Stuttgart.<br />

together with our employees:<br />

StreetUniverCityBerlin<br />

“StreetUniverCityBerlin” (SUB) is housed in a youth center in the Kreuzberg section of Berlin. The organization’s<br />

motto is “Study as if you were at university, while becoming streetwise and learning lessons for life.” While SUB<br />

is not a substitute for professional training, its scope of activities does go far beyond traditional streetwork.<br />

SUB’s pilot semester featured workshops, seminars, and excursions related to societal and political education,<br />

social skills, career options, art, and sports. More specifically, SUB provided job-application training and also<br />

offered anti-conflict seminars and theater workshops, among other things. Its students also produced their own<br />

short film. One specialized SUB workshop sponsored <strong>by</strong> <strong>Daimler</strong> Financial Services taught participants how to<br />

work in teams, deal responsibly with money, and develop new business ideas, where<strong>by</strong> several of the company’s<br />

employees voluntarily served as instructors. <strong>Daimler</strong> Financial Services continues to act as a partner to SUB in<br />

2008.<br />

The green classroom: Trainees help out at a zoo<br />

Learning in a zoo can be a lot of fun for children and teenagers, which is why Zooschule Landau (Landau Zoo<br />

School) offers an educational program targeted specifically at those groups. The school, which is located in<br />

Germany’s Palatinate region, was established through a partnership between the University of Koblenz-Landau<br />

and Landau Zoo. As many as 40 specially trained students teach kindergarten and school classes at Zooschule<br />

Landau. The curriculum includes lectures on interesting types of plants and wild animals in Germany and faraway<br />

places. Following the completion of a new school building, activities in 2007 focused on the creation of an openair<br />

classroom. <strong>Daimler</strong> paid for all the required materials here, and trainees from the Mercedes-Benz plant in<br />

Wörth pitched in to help build an amphitheater-like structure for the outdoor classroom. They and training<br />

director Stefan Jakobi then installed benches and laid pavement at the site.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

“Im Tennental”: Trainees team up with severely handicapped persons to build a house<br />

The partnership between Mercedes-Benz’ Sindelfingen plant and the “Im Tennental” village community has a long<br />

tradition. Some 200 people, including 110 severely disabled individuals between the ages of 16 and 56, live and<br />

work in the community, which is located in the town of Deckenpfronn near Böblingen. For more than ten years<br />

now, <strong>Daimler</strong> trainees have spent a week during their second year of training at “Im Tennental.” During this time,<br />

they help the disabled with projects designed to improve life in the village. Among other things, trainees have<br />

worked with community members to build new footpaths and a pond with a barbecue area. The partners have<br />

also constructed a hay drying facility and expanded a cheese dairy on the site. Back in 2006, <strong>Daimler</strong> trainees<br />

got together with disabled residents to erect a wood-frame house with a total area of 250 square meters that<br />

now serves as a school for training disability support workers. The house had previously been used as a<br />

construction shed at the <strong>Daimler</strong> plant in Sindelfingen, and the Group provided €10,000 toward the cost to move<br />

it. The latest cooperation project involves the expansion of a woodworking shop at “Im Tennental.” The existing<br />

shop, in which the disabled residents make wooden toys, had become too small to accommodate its output.<br />

Along with retirees from the Mercedes-Benz Sindelfingen plant, the <strong>Daimler</strong> trainees spent three months<br />

expanding the workshop — and were helped out wherever possible <strong>by</strong> the residents themselves. <strong>This</strong> voluntary<br />

effort saved the community €50,000. Most of the material costs here were covered with a €20,000 donation<br />

from the STAR CARE Stuttgart association, whose chairman, Volker Stauch, also manages the Mercedes-Benz<br />

plants in Untertürkheim, Berlin-Marienfelde, Hamburg, and Kölleda.<br />

STAR CARE helps kids in need<br />

STAR CARE is an association established <strong>by</strong> <strong>Daimler</strong> employees to help sick, handicapped, neglected, and<br />

otherwise needy children. The association is divided into five chapters within Germany that stage benefit<br />

performances and other events to raise money for the cause. Last year, for example, the Stuttgart chapter held<br />

its STAR CARE Night 2007. Proceeds totaling €40,000 were donated to the Diakonie Stetten organization, which<br />

supports the disabled. The funds thus raised are making it possible for a group of young mentally handicapped<br />

people to take part in the Special Olympics National Games to be held in Karlsruhe in June 2008. STAR CARE<br />

Hessen also launched an initiative with the Mercedes-Benz plant in Kassel and other partners that has benefited<br />

five young individuals from troubled backgrounds who had previously searched in vain for a trainee position. On<br />

September 3, 2007, these new trainees began a two-year apprenticeship at the Kassel plant that will end with<br />

their certification as machinists through a program recognized <strong>by</strong> the German Chamber of Commerce. Further<br />

information on STAR CARE assistance projects can be found here.<br />

for humanitarian causes all over the world<br />

Food for the needy: Bundesverband Deutsche Tafel e. V. drives Mercedes-Benz<br />

Although Germany has a surplus of food, many people in the country simply don’t have enough money to buy the<br />

food they need. The Bundesverband Deutsche Tafel e. V. aid organization is addressing this problem: Under the<br />

motto “Everyone gives <strong>what</strong> they can,“ voluntary helpers collect leftovers that, although still of good quality, can<br />

no longer be sold at bakeries, outdoor markets, and supermarkets. The food is then distributed either directly <strong>by</strong><br />

the organization or else via other groups that also assist the needy. <strong>Daimler</strong> has been one of the main sponsors<br />

of Bundesverband Deutsche Tafel e. V. since 1998. The Group originally got involved <strong>by</strong> donating 100 used<br />

Mercedes-Benz Vito vans complete with service contracts. Since the year 2000, however, our company has also<br />

been offering the organization refrigerated Vito and Sprinter vans at very low prices. <strong>Daimler</strong> is therefore helping<br />

to ensure that Bundesverband Deutsche Tafel e. V. remains on the move and can get the food it collects to those<br />

who need it.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

Forgotten Harvest — Food for the needy in Detroit<br />

Forgotten Harvest is an aid organization based in Detroit that was established in 1990 to battle hunger and<br />

waste in the city. As is the case with Bundesverband Deutsche Tafel e. V., voluntary helpers from Forgotten<br />

Harvest collect leftover food from supermarkets, outdoor markets, restaurants, and caterers, and then distribute<br />

it to soup kitchens for the needy in the region. The <strong>Daimler</strong> AG subsidiary <strong>Daimler</strong> Financial Services Americas,<br />

which is headquartered in the Detroit metropolitan area, has extensively supported the organization for several<br />

years now. In this regard, <strong>Daimler</strong> Financial Services Americas and <strong>Daimler</strong> remain good corporate citizens and<br />

neighbors even in the aftermath of the Chrysler de-merger. Among other things, we’ve donated three new<br />

Freightliner trucks to Forgotten Harvest, and have contributed $100,000 to a food donation drive. We also held a<br />

competition that resulted in the collection of more than 2,000 kilograms of food.<br />

Helping Africa: <strong>Daimler</strong> and the German Foundation for World Population (DWS)<br />

The German Foundation for World Population (DWS) is an international development organization that seeks to<br />

help people free themselves from poverty. DWS, which is politically and religiously independent, focuses on<br />

family planning and sex education as a way of breaking the cycle of poverty. It is also the only non-governmental<br />

organization of any significance in Germany to address the often-neglected issue of overpopulation. <strong>Daimler</strong> has<br />

helped launch DWS youth and educational projects in five African countries to date. We do this because we are<br />

convinced that only people who can protect themselves from unwanted pregnancies and HIV/AIDS will have the<br />

chance to lead healthier and better lives.<br />

School of Joy — Helping children and adolescents in Palestine<br />

The “School of Joy” is a private school in Beit Sahour, Palestine, which is attended <strong>by</strong> around 60 children and<br />

adolescents with learning difficulties or psychological disorders. Some of the students are orphans, while others<br />

are in families that live in abject poverty. The school operates mainly on the basis of donations. Together with the<br />

German children's charity Die Sternsinger, <strong>Daimler</strong> last year presented the school with a Mercedes-Benz Vito for<br />

use as a school bus. <strong>This</strong> was actually the second vehicle that we’ve made available to the School of Joy. Today,<br />

the Vito is helping transport those children who live far away to and from the school. Every year, <strong>Daimler</strong> also<br />

helps out <strong>by</strong> selling olive wood carvings made <strong>by</strong> the school’s students to employees in Germany. The proceeds<br />

go directly to the school, where they help — along with additional funding from our company — to keep it up and<br />

running.<br />

For terminally ill children: <strong>Daimler</strong> supports Hospitz St. Nikolaus<br />

In November 2006, the first children’s hospice in southern Germany — Hospitz St. Nikolaus — opened in the town<br />

of Bad Grönenbach. <strong>Daimler</strong> helped fund the hospice knowing that terminally ill children and their families would<br />

find loving support there. Hospitz St. Nikolaus takes the burden of 24-hour childcare away from parents, thus<br />

giving them the opportunity to prepare for the difficult time ahead.


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<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

to promote education and training outside our plants<br />

“Each Girl Is a Star” — Making technology fun<br />

“Each Girl Is a Star“ is an award-winning program designed to get Turkish girls interested in technical<br />

professions. The program is run <strong>by</strong> Mercedes-Benz Turkey in cooperation with CYDD, a Turkish organization that<br />

supports young girls and women. “Each Girl Is a Star“ is designed to encourage young women from poor families<br />

in particular to pursue careers traditionally dominated <strong>by</strong> men. As such, the program offers female students and<br />

trainees the opportunity to participate in practical seminars at Mercedes-Benz as part of a four-year professional<br />

training program, with the possibility of later being hired <strong>by</strong> our company or else <strong>by</strong> one of our dealers or<br />

suppliers. The program was launched in the 2004/2005 training year with an initial 200 participants. A total of<br />

850 Turkish girls between the ages of 15 and 18 from 36 different cities have since completed training, bringing<br />

the program closer to its initial target of 1,000. “Each Girl Is a Star” has also won two awards: In 2006, the<br />

program received the “Best Social Responsibility Award” from the highly respected Turkish business magazine<br />

Platin, and in 2007, it took first place in the “Corporate Social Responsibility — Education” category for the 6th<br />

Golden Compass Public Relations Award, which is organized each year <strong>by</strong> the Turkish PR company TUHID.<br />

“Copying Allowed!” — On a tour of discovery with the Mercedes-Benz Children’s University<br />

Copying isn’t allowed in school — but it's encouraged at the Mercedes-Benz Children’s University. “Copying<br />

Allowed!” is therefore the title of an exhibition the university stages for young researchers between the ages of<br />

six and 12, who are given the opportunity to learn about the fascinating links between nature and technology.<br />

More specifically, the kids learn about the tricks and techniques developed <strong>by</strong> some animals to adapt themselves<br />

perfectly to their surrounding environments, and how some of these tricks can be used in technological<br />

applications, such as automotive development. The scientific discipline that addresses this “copying from nature”<br />

is known as bionics — and Mercedes-Benz engineers have already successfully applied it in several instances. The<br />

Mercedes-Benz Bionic Car research vehicle, for example, was modeled on the boxfish, a tropical fish whose<br />

angular shape belies the fact that it’s actually quite aerodynamically efficient and deft. Moreover, the fish’s highly<br />

stable skeleton serves as a model for modern lightweight automotive design. The traveling exhibition, which was<br />

developed in cooperation with Darmstadt Technical University’s Bionics Center, is making stops in various<br />

German cities.<br />

for intercultural dialog<br />

Mondialogo — International contest for high school and college students<br />

We work with UNESCO to support the establishment of networks among young people around the globe in the<br />

Mondialogo project. Mondialogo consists of two international contests for high school and college students, as<br />

well as an Internet portal in five languages. Altogether, 2,600 schools from 144 countries — a new record — have<br />

registered for the contest in 2008. Mondialogo also sponsors an Engineering Award, the third round of which<br />

begins this year, as engineering students from around the world are being called upon to come up with<br />

sustainable technological solutions for fighting poverty and climate change.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

Students in Stuttgart learn Chinese to build bridges to Asia<br />

Three high schools in the Stuttgart area have been participating since 2004 in the “China — Language, Economy,<br />

Culture” project sponsored <strong>by</strong> the Robert Bosch Foundation, <strong>Daimler</strong> AG, and Porsche AG. All those involved in<br />

the project describe it as a successful vehicle for building bridges from Europe to Asia. The three schools — the<br />

Ferdinand-Porsche Gymnasium in Stuttgart, the Heinrich-Heine Gymnasium in Ostfildern, and the<br />

Stiftsgymnasium in Sindelfingen — have set up working groups for a total of 100 students in different grades. The<br />

groups receive Chinese language instruction from native speakers and also learn about Chinese culture and the<br />

country’s economy. Participants have also been able to extend their knowledge <strong>by</strong> taking trips to China. Our<br />

company has donated €30,000 to the project, and we also provide China experts who serve as instructors for<br />

the economics courses. Our commitment here is driven <strong>by</strong> our belief that in today’s tightly networked world (in<br />

both the economic realm and beyond), it is crucial to have an understanding of different cultures and customs.<br />

The foundation for such an understanding in this project is provided <strong>by</strong> outstanding language instruction and<br />

courses that highlight Chinese traditions.<br />

Takenoko Fund — Japanese-German exchange program for high school students<br />

Back in 2005, <strong>Daimler</strong> initiated a Japanese-German student exchange program that was extended for a further<br />

three years in November 2007. Our intention here is to get young people in each country interested in the<br />

partner nation and its culture, there<strong>by</strong> promoting sustained cultural dialog between Germany and Japan. The<br />

program was created through a cooperation agreement between <strong>Daimler</strong> and the Japanese-German Center Berlin<br />

(JDZB) governing the establishment of the Takenoko Fund. The name takenoko <strong>means</strong> “young bamboo shoot” in<br />

Japanese, and this name was chosen because of the speed with which the bamboo plant grows and forms a<br />

forceful network. Over the last three years, the Takenoko Fund has enabled 120 Japanese students to travel to<br />

Germany and 204 students from Germany to visit Japan. <strong>Daimler</strong> sponsors the project along with its Japanese<br />

subsidiary, Mitsubishi Fuso Truck & Bus Corporation. The financial support they provide is used mainly to cover<br />

airfare, which is very expensive due to the huge distances involved. The program also gives students the<br />

opportunity to tour a <strong>Daimler</strong> plant in Germany or a Mitsubishi factory in Japan. Students wishing to apply for the<br />

sponsored exchange program are required to come from schools that either offer Japanese/German instruction,<br />

have set up intercultural working groups, or have initiated an exchange project.<br />

<strong>Daimler</strong>-Byrnes Scholarship sends German students to the U.S.<br />

Every year, several high school students from the Stuttgart area receive a <strong>Daimler</strong>-Byrnes Scholarship that allows<br />

them to spend 12 months in the U.S. <strong>This</strong> exchange program is sponsored <strong>by</strong> Forum Region Stuttgart, the<br />

Deutsch-Amerikanisches-Zentrum/James-F.-Byrnes-Institut, <strong>Daimler</strong> AG and, since 2008, IHK Region Stuttgart<br />

(chamber of commerce) and Stihl AG. Project organization is handled <strong>by</strong> the American Field Service (AFS). The<br />

scholarship is named for James F. Byrnes, who as U.S. secretary of state encouraged reconciliation between<br />

Germany and the U.S. following the Second World War. The program thus seeks out students who possess skills<br />

in overcoming prejudice and building personal networks. The 16-year-old students who participate in the<br />

program are not sent to the U.S. just to learn, but are also required to give presentations about where they come<br />

from, and thus serve as young ambassadors for the Stuttgart region. Since 2007, the scholarship presentation<br />

ceremony has been held at the Mercedes-Benz Museum, a venue that underscores <strong>Daimler</strong>’s importance to the<br />

Stuttgart region.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

Cultural sponsorship through DeutschMobil<br />

<strong>Daimler</strong> has provided ten Mercedes-Benz Vito vans to support the “DeutschMobil” campaign organized <strong>by</strong> the<br />

Federation of German-French Cultural Centers. The goal of the campaign is to bring people in the neighboring<br />

countries of Germany and France closer together. In the program, which was launched in 2000 in cooperation<br />

with the Robert Bosch Foundation, students studying to become German teachers travel in “DeutschMobiles” to<br />

French elementary and secondary schools to provide language instruction and information on Germany and its<br />

culture. The idea is to motivate a greater number of French students to choose German as their first or second<br />

foreign language. Since then, interest has grown <strong>by</strong> at least 25 percent and in some cases <strong>by</strong> as much as 90<br />

percent.<br />

to promote science<br />

The Gottlieb <strong>Daimler</strong> and Karl Benz Foundation — New approaches to research<br />

The dynamic interrelationships between man, the environment, and technology are presenting new challenges to<br />

the scientific community, which is thus increasingly under pressure to come up with interdisciplinary answers to<br />

the various problems we face. The Gottlieb <strong>Daimler</strong> and Karl Benz Foundation, which was established in 1986 <strong>by</strong><br />

the former <strong>Daimler</strong>-Benz AG (now <strong>Daimler</strong> AG), pursues such an interdisciplinary approach <strong>by</strong> combining<br />

scientific discourse on socially relevant issues with new research methods. One of the foundation’s most<br />

important forums is the “Ladenburg Discourse.” Here, scientists and experts from industry discuss the suitability<br />

of specific issues as research topics in the foundation’s sponsorship program. Based on the results of this<br />

discourse, scientists from various disciplines work with experts in a three-to-five-year research program on one<br />

of the selected topics at the “Ladenburg Collegia.” Such research teams thus have the opportunity to implement<br />

projects that their own organizations are either unable to finance, or else cannot find suitable partners for. Since<br />

the sponsorship program began, a total of 11 Collegia have been held to address issues such as “Settling and<br />

Living in the City” and “Understanding and Shaping Globalization.“ Research results are published on a regular<br />

basis. The foundation also supports the international exchange of doctoral candidates, as well as several projects<br />

in selected Southeast Asian nations. A scholarship program designed to encourage young scientists to gain<br />

experience outside their home countries is also offered. The Gottlieb <strong>Daimler</strong> and Karl Benz Foundation is<br />

financially independent. It currently operates with total capital of €37.5 million and provides €1.5 million in<br />

sponsorship funding each year.<br />

to promote the arts and culture<br />

The <strong>Daimler</strong> Art Collection on tour around the world: 2003-2010<br />

The <strong>Daimler</strong> Art Collection — one of the most esteemed corporate collections in Germany — was founded in 1977<br />

and currently comprises approximately 1,800 works of art from some 600 international artists. Since 2003, a<br />

selection of some 150 famous works <strong>by</strong> artists ranging from Josef Albers to Andy Warhol and Sylvie Fleury has<br />

been traveling around the world. Stops to date include museums in Japan, South Africa, Brazil, and many other<br />

countries. The <strong>Daimler</strong> Art Collection is continuing its world tour in 2008 with exhibitions in Madrid and<br />

Singapore. The “MAXImin” exhibition, which opened in February 2008 at the famous Juan March museum in<br />

Madrid, offers an overview of 100 years of abstract avant-garde art. Each exhibition on the world tour is<br />

accompanied <strong>by</strong> a special educational program for students.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

Internationale Bachakademie — Supporting the musical arts<br />

Music plays a key role in <strong>Daimler</strong>’s cultural support activities. Among other things, we provide funding to the<br />

International Bachakademie Stuttgart, a foundation established in 1981 <strong>by</strong> Helmuth Rilling, who also continues<br />

to serve as its artistic director. The Bachakademie holds concerts both in Germany and abroad, conducts<br />

workshops for young musicians around the world, and offers seminars and symposiums on music theory and<br />

practice. It also operates a research and education center, which is primarily dedicated to the work of Johann<br />

Sebastian Bach.<br />

Deutscher Musikrat — <strong>Daimler</strong> promotes highly talented young musicians<br />

The Deutsche Musikrat is an association that promotes all different types of music in Germany and seeks to<br />

elevate the status of music in society as much as possible. With more than eight million members, the Deutsche<br />

Musikrat is the largest cultural association in Germany. A key focus of the organization is to discover young<br />

talented musicians and support their further development. <strong>Daimler</strong> assists Deutsche Musikrat financially <strong>by</strong><br />

sponsoring its Bundesjugendorchester (national youth orchestra), which brings together Germany’s youngest<br />

high quality musicians three times each year for a period of ten to 14 days, during which time they work with<br />

famous conductors and experienced music teachers. Both singers and players of musical instruments can apply<br />

for membership in the Bundesjugendorchester, and those who pass its audition can further develop their skills<br />

under the direction of famous jazz artists for a period of two years, where<strong>by</strong> the maximum age for membership is<br />

24. The orchestra plays concerts, goes on tours abroad, and records CDs. <strong>Daimler</strong> also supports the<br />

Bundesjazzorchester, which since its inception has helped more than 400 young musical talents establish<br />

themselves on the German music scene. Till Brönner and Roger Cicero are just two of today’s artists who got<br />

their start with the Bundesjazzorchester. The Bundesjazzorchester, which was honored with the Deutscher<br />

Musikpreis award in 1997, is celebrating its 20th anniversary this year.<br />

Award for South African Culture<br />

In 1999, <strong>Daimler</strong> established <strong>what</strong> is now known as the Mercedes Benz Award for South African Culture, which<br />

remains the most important cultural prize in South Africa today. The award gives young culturally creative people<br />

their first international exposure and enables them to stage major presentations of their work in South Africa as<br />

well. The award is presented in a different category each year; since 2000, prizes have been given for<br />

Contemporary Art, Jazz, Sculpture, Choreography, Photography, Poetry, and Architecture. The 2008 award will be<br />

presented in the category of Art in Public Spaces, to be followed in later years <strong>by</strong> Fashion Design and Rhythm<br />

and Blues/Young Urban Music. The award aims to honor and promote South African culture as a reflection of the<br />

country’s social and political development and maturity. The plan for 2010, when the World Soccer<br />

Championship will take place in South Africa, is to stage a retrospective in Pretoria and Berlin of the works of all<br />

the nominees ever selected, which <strong>by</strong> that time will number around 100.<br />

SWR3 New Pop Festival: “Dance of the Robots” at the Mercedes-Benz plant in Rastatt<br />

What do Joe Cocker, Udo Lindenberg, Maroon 5, Katie Melua, Wir sind Helden, Sasha, and Zucherro have in<br />

common? They’ve all performed at one time or another in front of dancing robots. For more than ten years now,<br />

the Mercedes-Benz plant in Rastatt has hosted the SWR3 New Pop Festival presented <strong>by</strong> the SWR broadcasting<br />

network. When the show comes to town for three evenings, some 6,500 enthusiastic spectators can be found at<br />

a location where the Mercedes-Benz A- and B-Class normally roll off the line. Given this industrial backdrop, it’s<br />

not surprising that most concertgoers first look to the assembly line rather than the stage when they enter the<br />

hall. As a result, they’re treated to the sight of various automobile parts, which are put together here to form<br />

Mercedes-Benz A-Class vehicles. Naturally, the body-in-white comes to a halt when the show begins, as the<br />

flexible production system in the assembly hall adjusts to the changed conditions during the three days of the<br />

festival. Creating this spectacular concert venue requires 200 tons of material to be moved in order to free up<br />

space for the stage, the audience, and backstage areas. The result of this process is the creation of a completely<br />

new world covering an area of nearly 7,000 square meters in just a few days.


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<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

Ludwigsburger Schlossfestspiele/Internationale Festspiele Baden-Württemberg<br />

The Ludwigsburger Schlossfestspiele, one of oldest music and theater festivals in the German-speaking world,<br />

celebrated its 75th anniversary in 2007. <strong>Daimler</strong> will again serve as one of the main sponsors of the event in<br />

2008. <strong>Daimler</strong>’s longstanding support for the Schlossfestspiele demonstrates its very close ties to the Stuttgart<br />

region and its cultural identity. The Group sponsors selected performances and concerts, which in 2008 will<br />

consist of events taking place from April 4-13, May 30-July 27, and November 22-30. As an official state festival,<br />

the Ludwigsburger Schlossfestspiele cooperates with many other international festivals and thus represents the<br />

cultural richness of the German state of Baden-Württemberg.<br />

to promote sports and physical fitness<br />

Soccer Integration Award from Mercedes-Benz and the German Soccer Association (DFB)<br />

“Soccer: Many Cultures — but a Single Passion” is the motto of the Soccer Integration Award established in June<br />

2007 <strong>by</strong> the German Soccer Association (DFB) and DFB general sponsor Mercedes-Benz. The initiative<br />

associated with the award seeks to support projects and activities that use soccer to reach out to children and<br />

teenagers (especially girls) in an effort to promote cultural integration. The initiative was launched during the<br />

European Championship qualification match between Germany and San Marino on June 1, 2007. A total of 181<br />

schools and soccer clubs had entered the competition for the award <strong>by</strong> September 2007. In December, a DFB<br />

panel selected the winners in the two categories of Soccer Clubs and Schools, and also presented special<br />

awards for soccer associations and cultural integration initiatives beyond the world of organized soccer.<br />

The first place finishers in each category received a Mercedes-Benz Vito van, which will be used to help safely<br />

and comfortably transport children and teenagers to events and tournaments. Second place finishers were each<br />

awarded €10,000 to further their work in the area of integration, and those who finished third were given €5,000<br />

for the same purpose.<br />

The awards were presented at the Sindelfingen Glaspalast (Glass Palace) on January 4, 2008, during the<br />

Mercedes-Benz Junior Cup soccer tournament. The tournament featured the junior squads from international top<br />

clubs such as Dinamo Zagreb, AS Monaco, FC Basel, Fenerbahce Istanbul, and the under-19 team from 2010<br />

World Cup host South Africa. These teams competed alongside junior German teams from Hertha BSC Berlin,<br />

Schalke 04, VfB Stuttgart, and others. The Mercedes-Benz Junior Cup event also included a tournament featuring<br />

ten <strong>Daimler</strong> trainee teams.<br />

IOC partnership: Global social commitment within the Olympic framework<br />

For 12 years now, <strong>Daimler</strong> has served as the only commercial partner to the International Olympic Committee’s<br />

(IOC) “Olympic Solidarity” development program. The relationship between <strong>Daimler</strong> and the IOC goes far beyond<br />

sponsorship here, as both view their cooperation as one element of a strategic partnership. That’s because<br />

<strong>Daimler</strong>, which does business in around 200 countries, and the IOC, which is the world’s leading athletic<br />

organization, share common ideals regarding fair and open competition, international dialog, social responsibility,<br />

peaceful coexistence, outstanding athletic performance, enthusiasm, and discipline.<br />

Cooperation between the IOC and <strong>Daimler</strong> takes many forms. For example, <strong>Daimler</strong> works with the IOC to<br />

support physical fitness among children and adolescents in poor regions around the globe that have little or no<br />

athletic infrastructure, few training facilities, and no money to promote young athletes. Since 1998, financial<br />

support from <strong>Daimler</strong> has helped build more than 50 athletic and educational facilities, most of them in Africa,<br />

Asia, and Oceania.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Social and cultural projects*<br />

Another key element of the partnership is the donation of vehicles to National Olympic Committees (NOCs). The<br />

Mercedes-Benz mini-buses thus provided are used to transport athletes to and from venues and training centers.<br />

<strong>Daimler</strong> has donated 100 Mercedes-Benz Sprinter vans to date, the last of which was given to Vietnam’s NOC in<br />

2007.<br />

<strong>Daimler</strong> also supports outstanding athletes in developing countries. Here, the Group has helped finance High<br />

Performance Training Centers, most of which have already produced Olympic champions.<br />

Laureus Sport for Good Foundation<br />

“Sport has the power to change the world,” said Laureus’ patron Nelson Mandela during the very first<br />

presentation of the Laureus World Sports Awards in 2000. “Sport can create hope where once there was only<br />

despair.” <strong>This</strong> philosophy has since become the driving force behind the Laureus Sport for Good Foundation, the<br />

founding partners of which are <strong>Daimler</strong> and the luxury goods manufacturer Richemont. The two companies also<br />

established the Laureus World Sports Awards, where<strong>by</strong> <strong>Daimler</strong> is officially represented <strong>by</strong> Mercedes-Benz here.<br />

Also part of the foundation is the Laureus World Sports Academy — a unique association of international sporting<br />

legends whose mission is to get young people to participate in sports, while at the same time drawing public<br />

attention to global social problems. The Laureus Sport for Good Foundation currently supports more than 50<br />

sports projects worldwide dedicated to causes such as battling AIDS, drug abuse, violence, and racial and<br />

religious discrimination. Such projects also promote social integration. The Laureus World Sports Awards is a<br />

unique annual event that honors the best male and female athletes in all disciplines. The award’s name comes<br />

from the Latin word for “bay laurel,” which is the universal symbol of victory and peace.<br />

Mercedes-Benz is the national sponsor of Stiftung Deutsche Sporthilfe<br />

At Germany’s annual Sports Ball, which was held in early February 2008 in Wiesbaden, Mercedes-Benz presented<br />

itself for the first time as the national sponsor of the Stiftung Deutsche Sporthilfe foundation. <strong>This</strong> move further<br />

expanded our commitment to sports. Mercedes-Benz has been a partner of Stiftung Deutsche Sporthilfe for<br />

many years now. The foundation, which was established in 1967, is dedicated to supporting young sportsmen<br />

and sportswomen. We sponsor events such as the Sports Ball, the Goldene Sportpyramide award, and the Fest<br />

der Begegnungen international and intercultural festival. For example, the grand prize in this year’s Sports Ball<br />

raffle was a silver Mercedes-Benz S-Class provided <strong>by</strong> <strong>Daimler</strong>.<br />

Guests at the ball, whose patron was German president Horst Köhler, included the “Mercedes-Benz Olympic<br />

Partners” — selected Olympic and Paralympic athletes who are being assisted <strong>by</strong> Mercedes-Benz as they make<br />

their way to the 2008 Olympic Games. Among other things, we are providing these 12 athletes with vehicles<br />

during the entire Olympic preparation period, there<strong>by</strong> safeguarding their mobility and flexibility in a phase<br />

marked <strong>by</strong> frequent commutes between home, training centers, and competitive venues. Mercedes-Benz<br />

Olympic Partners include equestrian show jumper Meredith Michaels Beerbaum, track-and-field athlete Tobias<br />

Unger, flatwater canoer Tim Wieskötter, and Paralympics athletes Wojtek Czyz and Daniel Arnold. Additional<br />

information on our sponsorship activities for Stiftung Deutsche Sporthilfe can be found here.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Social commitment / Automotive Academy*<br />

Automotive Academy*<br />

Development assistance through training<br />

Training skilled workers, offering young individuals solid prospects for the future, and contributing to social<br />

stability: The <strong>Daimler</strong> Automotive Academy Network is a global association of training centers that make<br />

available our core expertise in automobile production, thus making a valuable contribution to assisting local<br />

youth and providing support to underdeveloped regions.<br />

The idea for the network originated in 1999, and the first training center was opened in Ulaan Baatar, Mongolia.<br />

Today, the network has accredited centers in Kabul (Afghanistan), Perm (Russia), and Kuwait, as well as more<br />

recently established centers in Hoedspruit (South Africa) and Beit Sahour (Palestine), both of which opened in<br />

2007. All facilities are organized as public-private partnerships, which <strong>means</strong> financing from local governments<br />

supplements our own investment. The training centers offer courses in automotive repair, mechatronics,<br />

electronic systems, management, and marketing, some of which are combined with theoretical and practical<br />

internships in Stuttgart. Students also have the possibility to pursue a Master’s degree. Curricula are tailored to<br />

the conditions of each country, and the program’s conceptual design focuses on ensuring that academy<br />

graduates are able to go to work immediately, and that the facilities themselves can operate on their own after<br />

an initial period of approximately three years.<br />

German Automotive Academy Afghanistan "Gottlieb <strong>Daimler</strong>"*<br />

A key <strong>means</strong> of rebuilding Afghanistan is to support, qualify and train young people in the region. In a project<br />

initiated in cooperation with Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and the Arbeitsgruppe<br />

für Entwicklung und Fachkräfte (AGEF), <strong>Daimler</strong> has already finished training more than 50 mechanics and<br />

technicians in Afghanistan.<br />

In each training course, 16 young people receive nine months of basic instruction that provides them with strong<br />

theoretical and practical knowledge of general motor vehicle technology. All of the participants receive<br />

apprenticeship pay during training. To enable the trainees to support their families, this pay corresponds to <strong>what</strong><br />

a skilled worker would earn in Afghanistan. After successfully completing the theoretical part of their training,<br />

each participant also receives a <strong>Daimler</strong> overall that he or she wears when working on the vehicles during the<br />

subsequent phase of practical training. In addition, <strong>Daimler</strong> provides AGEF with a Mercedes-Benz-Vito that is<br />

used to transport the participants to the training sessions.<br />

After the participants have successfully completed their training, the focus is on getting them jobs. For example,<br />

they often find a job at local repair shops or at international organizations because the types of vehicles used<br />

during practical training are generally the same as those operated <strong>by</strong> such potential employers. The employees<br />

can therefore immediately begin working without requiring any further instruction. The Academy's first graduates<br />

all found jobs immediately after completing their training.<br />

* Content on this page is available exclusively on the Internet.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Public policy<br />

Public policy<br />

<strong>Daimler</strong> maintains a consistent open dialogue with representatives from the political sphere on all issues that<br />

affect the Group’s operations. Our activities here are based on our Guidelines for Responsible Lob<strong>by</strong>ing, which<br />

were drawn up in 2007. These guidelines are currently being reworked and will soon be downloadable at this<br />

site.<br />

More specifically, our dialogue with the political sphere focuses on:<br />

� Climate change, pollutant emissions, and environmental protection<br />

� Transportation policy<br />

� Road and vehicle safety<br />

� International trade and investment issues<br />

� Issues related to implementation of technical innovations<br />

� Intellectual property rights<br />

� Global harmonization of standards and regulations<br />

� Economic development discussions<br />

Along with political dialogue on a national level, <strong>Daimler</strong> also endeavors to make a contribution to the promotion<br />

of international, above all transatlantic, cooperation; to this end <strong>Daimler</strong> became a partner in the German<br />

Marshall Fund’s Brussels Forum in 2006. The forum sponsors an annually held series of meetings for political,<br />

business, and social leaders. <strong>Daimler</strong> also supports the Center for Transatlantic Relations in Washington D.C. in<br />

its annual study of the transatlantic economy, as well as programs at numerous think tanks worldwide.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Public policy / Supporting the democratic process<br />

Supporting the democratic process<br />

When it comes to making contributions to political parties, <strong>Daimler</strong> maintains strict compliance with legislation<br />

and with the Group’s internal guidelines on political contributions that were introduced in 2006. In 2007, the<br />

<strong>Daimler</strong> Board of Management authorized the payment of contributions totaling € 400,000 to the German<br />

political parties CDU, CSU, SPD, FDP, and BÜNDNIS 90/DIE GRÜNEN. In <strong>Daimler</strong>’s second home market, the<br />

U.S., contributions of corporate funds to politicians or political parties are not allowed. However, voluntary<br />

donations <strong>by</strong> management staff may be made via political action committees (PACs), and this practice is widely<br />

employed <strong>by</strong> companies with a strong business presence in the country. The company ensures that employees<br />

neither benefit from, nor are disadvantaged <strong>by</strong>, contributions to, or involvement in, political action committees.<br />

In 2007 (up until the sale of its majority interest in the Chrysler Group), the “<strong>Daimler</strong>Chrysler PAC” donated a<br />

total of US $ 402,275 to political parties and candidates for political office in the U.S. Now known as the<br />

“Chrysler PAC,” this committee is no longer open to <strong>Daimler</strong> employees. Plans for the establishment of a <strong>Daimler</strong><br />

PAC are currently being reviewed.


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Activities and goals<br />

Activities and goals<br />

Our responsibility to our customers: Acitivities and goals<br />

As an automaker and provider of vehicle-related services, we consider good customer relationships that are<br />

based on mutual trust to be an essential basis for our business. We see every decision to purchase a <strong>Daimler</strong><br />

product not only as a confirmation of this trust, but also as an obligation. Our customers demand the highest<br />

standards, and they have a right to expect that we make the pledge contained in our brands a tangible<br />

experience.<br />

Our aim is to offer clean, safe, and fascinating premiumsegment passenger cars; efficient, environmentally<br />

friendly commercial vehicles; and outstanding services that complement all aspects of these products. With this<br />

in mind, we have, for example, defined six disciplines at Mercedes-Benz Cars in which we intend to be the<br />

industry leader. Excellence in these disciplines is essential when it comes to maintaining good customer<br />

relations. They are quality, safety, comfort, design, environmental friendliness, and customer satisfaction with<br />

our sales and service.<br />

Our overall goal is to ensure that our customers can experience driving enjoyment with a clear conscience. And<br />

our CSI No. 1 program, which is designed to help us become the leader in customer satisfaction in the premium<br />

segment <strong>by</strong> 2010, stands for this commitment.<br />

Customers<br />

Goals Activities/status Goal attainment Link<br />

Mercedes-Benz intends to<br />

be Number 1 in customer<br />

satisfaction in the<br />

premium segment <strong>by</strong> the<br />

end of 2010<br />

The “CSI No. 1” program for significant improvement in customer<br />

satisfaction was launched in 2006. It includes consistent controlling<br />

and planning instruments.<br />

� The target values for 2007 were based on the values recorded<br />

for 2006 and on our competitive position. The internal<br />

Mercedes- Benz CSI targets were met or surpassed on nearly all<br />

markets. And the competitive position improved in almost all<br />

markets. The competitive position will also be used to<br />

determine the target values for the years ahead.<br />

� In the areas of sales and aftersales we have redefined the<br />

customer contact processes. We have also determined key<br />

indicators as target values for the European markets.<br />

� The lead times (customer waiting times) have been shortened.<br />

Here, we significantly exceeded the 2007 target values.<br />

� Aftersales personnel worldwide are to receive qualification and<br />

certification on the basis of clearly defined qualification profiles<br />

at Mercedes-Benz and smart <strong>by</strong> 2008.<br />

� The workshop processes and logistics processes for improving<br />

service and customer care quality at Mercedes-Benz and smart<br />

will be enhanced and standardized <strong>by</strong> 2010.<br />

Goal still applies Link


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Activities and goals<br />

Social responsibility: Activities and goals<br />

Every company is a part of the society in which it operates. Business decisions often affect many people in<br />

tangible ways, while events and processes of change in society can also have an enduring impact on business<br />

success. <strong>Daimler</strong> believes it is the company’s best interest to be a good corporate citizen that actively<br />

contributes to society and supports worthy causes. Our objective is to consistently increase and strengthen our<br />

commitment in our area of influence, through our various areas of expertise as an international manufacturer of<br />

motor vehicles.<br />

<strong>This</strong> is why we have defined the following focal points for efforts and initiatives that address social issues:<br />

commitment at our production and sales locations; volunteer activities on the part of our employees at our<br />

plants; road safety education for children; and the promotion of education, training, and scientific research –<br />

particularly in relation to our natural environment and technology. Our global business operations provide us with<br />

a heightened awareness of the great importance of mutual understanding between countries and cultures. <strong>This</strong> is<br />

why we are also engaged in intercultural dialogue and support cultural and sports activities. To ensure that we<br />

apply our energies and resources in the right way, and to provide funding that is based on clear criteria, we have<br />

further developed the areas of donations and sponsorships. Here, one of the measures implemented involved the<br />

creation of a database.<br />

One major undertaking at present is a broadening of our dialogue with our stakeholders, as we are aware of the<br />

importance of having good, trusting relationships in the environments in which we operate. We intend to improve<br />

transparency and to conduct a more open dialogue with our partners.<br />

Stakeholder involvement and dialogue<br />

Goals Activities/status Goal attainment Link<br />

Strengthening the<br />

stakeholder dialogue.<br />

Redefinition of stakeholder<br />

contacts, especially in the<br />

NAFTA region<br />

New approach for <strong>Daimler</strong><br />

corporate volunteering<br />

Introduction of a corporate<br />

guideline for responsible<br />

lob<strong>by</strong>ing.<br />

� Hold a stakeholder dialogue event with the relevant interest<br />

groups <strong>by</strong> the end of 2008.<br />

� Introduce a channel of communication designed to regularly<br />

provide the relevant stakeholders with information regarding<br />

sustainability at <strong>Daimler</strong> (<strong>by</strong> the end of 2008).<br />

A restructuring is needed as a result of the sale of majority<br />

ownership of the Chrysler Group. An overall plan and initial steps<br />

are to be presented <strong>by</strong> the end of 2008.<br />

The restructuring is necessary due to the sale of majority<br />

ownership of the Chrysler Group. An overall plan and initial steps<br />

are to be presented <strong>by</strong> the end of 2008.<br />

The development and internal discussion of the guideline was<br />

completed in 2007.<br />

New Goal Link<br />

New Goal Link<br />

New Goal Link<br />

Goal attained Link


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Activities and goals<br />

Commitment to society<br />

Goals Activities/status Goal attainment Link<br />

Donations and<br />

sponsorships: step-<br />

<strong>by</strong>step registration of<br />

financial expenditures<br />

worldwide<br />

Expansion of the <strong>Daimler</strong><br />

training network into the<br />

emerging markets<br />

The BoM Donations and Sponsoring Committee was constituted in<br />

September 2006. A Group-wide database is currently being set up,<br />

and collection of the relevant data has commenced worldwide. Data<br />

collection must be modified in the NAFTA region as a result of the<br />

sale of majority ownership of the Chrysler Group.<br />

In regions where contributions to social and political stability are<br />

needed, facilities that have been established since 2006 are to be<br />

enhanced (Palestine, South Africa) and new ones are to be built.<br />

Thanks to the creation of sustainable business processes, it will be<br />

possible for the training facilities to operate on their own after about<br />

three years.<br />

Goal still applies Link<br />

Goal still applies Link


<strong>Daimler</strong> 360 GRAD - FAKTEN zur Nachhaltigkeit 2008<br />

<strong>Daimler</strong> Nachhaltigkeitsbericht 2008 / Customers and society / Report profile<br />

Report profile<br />

The <strong>report</strong> 360 DEGREES – Facts on Sustainability 2008 (Facts 2008) provides an overview of <strong>Daimler</strong>’s activities<br />

with respect to sustainability. The period under review is the financial year 2007.<br />

Facts 2008 takes its lead from the guidelines of the Global Reporting Initiative (GRI), which <strong>Daimler</strong>Chrysler<br />

joined in 2006 as an organizational stakeholder. In accordance with the new GRI guidelines Version 3.0 (G3), the<br />

information and data contained in this <strong>report</strong> were compiled in line with the principles of balance, comparability,<br />

accuracy, timeliness, reliability, and clarity. Facts 2008 has been classified as a Level A+ <strong>report</strong> in line with the<br />

G3 definition, as assessed and confirmed <strong>by</strong> the GRI.<br />

A comprehensive version of the GRI Index can be found here. <strong>This</strong> website contains a list of all the GRI indicators,<br />

as well as detailed information and explanations of all indicators. Our website also contains a GRI Global<br />

Compact Index, which cross-references the “communication on progress” as specified <strong>by</strong> the Global Compact<br />

with G3 <strong>report</strong>ing.<br />

Scope of <strong>report</strong>ing and data acquisition methods<br />

Economy. The information on economic interrelationships presented in Facts 2008 is essentially based on data<br />

from the 2007 <strong>Daimler</strong> Annual Report. The Management Report and Notes sections, from which we have quoted<br />

in this <strong>report</strong>, were audited <strong>by</strong> the financial auditing firm KPMG Deutsche Treuhand-Gesellschaft AG. (For details<br />

see Annual Report 2007)<br />

Ecology. <strong>Daimler</strong> has been systematically compiling key environmental data from its German plants since 1992.<br />

In 1997 and 1998 its data acquisition was gradually extended to include production plants outside Germany.<br />

Since 2002, the acquisition and analysis of the data have been handled with the aid of a database. The data in<br />

this <strong>report</strong> reflect the structure of the Group in financial year 2007 and include all relevant production plants. To<br />

ensure comparability with data for previous years as far as possible, the data for the entire period covered do not<br />

include those parts of the company in which <strong>Daimler</strong> is no longer the majority shareholder. For this reason, the<br />

timelines may differ from those of previously published data. New parts of the company have been included from<br />

the time at which they became part of <strong>Daimler</strong>. The environmental data for 2007 refer to a total of 62 entire or<br />

partial business locations.<br />

Employees. The facts and figures related to the topic of Employees/ Human Resources are based on the 2007<br />

<strong>Daimler</strong> Annual Report. The <strong>report</strong>ing on human resources data is primarily conducted <strong>by</strong> <strong>means</strong> of the “HR<br />

ePARS” electronic human resources planning and <strong>report</strong>ing tool, which employs data from all consolidated<br />

companies within the <strong>Daimler</strong> Group. <strong>This</strong> information is complemented <strong>by</strong> data acquired with the aid of the<br />

“ePeople” electronic human resources management system. In the copy and diagrams in the “Workforce”<br />

section, it is indicated whether the data relate to the entire Group or only to parts thereof.<br />

Current developments. <strong>This</strong> <strong>report</strong> focuses on the current situation with regard to sustainability for the business<br />

year 2007. The data from the period following the sale of the majority shares of Chrysler refer to the continued<br />

activities of the <strong>Daimler</strong> Group. Unless otherwise indicated, the corresponding Chrysler data have been removed<br />

from the calculations.<br />

Liability disclaimer. The compilation of the data in this <strong>report</strong> has been carried out <strong>by</strong> <strong>Daimler</strong> with extreme care.<br />

Nevertheless, errors cannot be entirely excluded. Insofar as Facts 2008 contains forward-looking statements,<br />

these are based exclusively on data currently available and on assumptions founded on current forecasts.<br />

Although such projections are drawn up with the greatest care, a great variety of unforeseeable factors may lead<br />

to deviations. We neither intend nor assume an obligation to continually update statements concerning future<br />

developments. The content of the <strong>report</strong> was examined and released <strong>by</strong> the responsible professional staff. There<br />

was no examination <strong>by</strong> a third party, such as a financial auditing firm.<br />

Please note that the term employee refers to both male and female staff members at <strong>Daimler</strong>.<br />

<strong>Daimler</strong> published the last sustainability <strong>report</strong> in July 2007 under the title Facts on Sustainability 2007.<br />

Editorial deadline for this <strong>report</strong>: May 15, 2008


1 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

GRI Index<br />

Strategy and Analysis<br />

C 1.1<br />

C 1.2<br />

Organizational Profile<br />

C 2.1<br />

C 2.2<br />

C 2.3<br />

C 2.4<br />

C 2.5<br />

C 2.6<br />

C 2.7<br />

C 2.8<br />

C 2.9<br />

C 2.10<br />

Statement from the most senior decision-maker of<br />

the organization (e. g., CEO, chair, or equivalent<br />

senior position) about the relevance of sustainability<br />

to the organization and its strategy.<br />

Description of key impacts, risks and opportunities<br />

Name of <strong>report</strong>ing organization<br />

Primary brands, products and/or services<br />

Operational structure of the organization including<br />

main divisions, operating companies, subsidiaries,<br />

and joint ventures<br />

Location of the organization’s headquarters<br />

Number of countries where the organization operates,<br />

and names of countries with either major operations<br />

or that are specifically relevant to the sustainability<br />

issues covered in the <strong>report</strong>.<br />

Nature of ownership and legal form<br />

Markets served (including geographic breakdown,<br />

sectors served, and types of customers/beneficiaries)<br />

Scale of the <strong>report</strong>ing organization, including:<br />

• Number of employees;<br />

• Net sales (for private sector organizations) or net<br />

revenues (for public sector organizations);<br />

• Total capitalization broken down in terms of debt<br />

and equity (for private sector organizations); and<br />

• Quantity of products or services provided.<br />

Significant changes during the <strong>report</strong>ing period<br />

regarding size, structure, or ownership including:<br />

• The location of, or changes in operations, including<br />

facility openings, closings, and expansions; and<br />

• Changes in the share capital structure and other<br />

capital formation, maintenance, and alteration<br />

operations (for private sector organizations).<br />

Awards received in the <strong>report</strong>ing period<br />

Global<br />

Compact<br />

Print (page) Web Further information<br />

Degree<br />

4, 5<br />

14 ff.<br />

7<br />

7, 8, 9<br />

7, 8, 9<br />

7, 8, 9<br />

10, 11<br />

5<br />

10, 11<br />

7, 8, 23–27<br />

25<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

Transfer of a majority interest in Chrysler. On<br />

August 3, 2007, the transaction transferring a<br />

majority interest in the Chrysler Group and the<br />

related financial services operations in North<br />

America is concluded: Cerberus takes 80.1 % of<br />

the new Chrysler Holding LLC; <strong>Daimler</strong> retains<br />

an equity interest of 19.9 %.<br />

Awards received are <strong>report</strong>ed within the<br />

respective chapters.<br />

–<br />

–<br />

–<br />

–<br />

–<br />

–<br />

–<br />

–<br />

–<br />


2 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Report Parameters<br />

C 3.1<br />

C 3.2<br />

C 3.3<br />

C 3.4<br />

C 3.5<br />

C 3.6<br />

C 3.7<br />

C 3.8<br />

C 3.9<br />

C 3.10<br />

Reporting period for information provided<br />

Date of most recent previous <strong>report</strong><br />

Reporting cycle<br />

Contact point for questions regarding the <strong>report</strong> or its<br />

content<br />

Process for defining <strong>report</strong> content, including:<br />

• Determining materiality;<br />

• Prioritizing topics within the <strong>report</strong>; and identifying<br />

stakeholders the organization expects to use the<br />

<strong>report</strong>.<br />

Boundary of the <strong>report</strong><br />

State any specific limitations on the scope of the<br />

<strong>report</strong><br />

Basis for <strong>report</strong>ing on joint ventures, subsidiaries,<br />

leased facilities, outsourced operations, and other<br />

entities that can significantly affect comparability<br />

from period to period and/or between organizations<br />

Data measurement techniques and the bases of<br />

calculations, including assumptions and techniques<br />

underlying estimations applied to the compilation of<br />

the Indicators and other information in the <strong>report</strong><br />

Explanations of the effect of any re-statements of<br />

information provided in earlier <strong>report</strong>s, and the<br />

reasons for such re-statement<br />

Global<br />

Compact<br />

Print (page) Web Further information<br />

Degree<br />

Profile<br />

Profile<br />

Profile<br />

Imprint<br />

Profile<br />

65<br />

65<br />

Profile<br />

Profile<br />

Profile, 25<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

–<br />

–<br />

–<br />

–<br />

The GRI-oriented annual <strong>report</strong> “Facts on<br />

Sustainability” and the associated Internet<br />

presentation are created <strong>by</strong> <strong>means</strong> of a<br />

systematic process as an integral part of the<br />

work performed <strong>by</strong> the <strong>Daimler</strong> Sustainability<br />

Office. <strong>This</strong> office (the successor of the<br />

Sustainability Task Force) is a component of the<br />

governance structure that was newly established<br />

in 2007 and corresponds to the work level of the<br />

Sustainability Board (see p. 13, Facts 2008). The<br />

Sustainability Office brings together the units<br />

related to sustainability (corresponding to their<br />

membership in the Sustainability Board). Their<br />

work is coordinated <strong>by</strong> the Communications,<br />

External Affairs and Public Policy, and<br />

Environmental Protection departments.<br />

The definition and creation of GRI and sustainability-related<br />

content (keyword: Materiality) is<br />

thus carried out on the basis of stipulations<br />

formulated <strong>by</strong> top management, the Sustainability<br />

Board (including the Sustainability<br />

Office), and the responsible specialist<br />

departments. Reviews and discussions with<br />

external experts (above and beyond external<br />

statements), as well as coordination with top<br />

management, are also established elements of<br />

the overall process.<br />

See also Annual Report, pp. 34, 110–112, 114,<br />

126<br />

See the Report Profile<br />

–<br />

–<br />


3 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Report Parameters<br />

C 3.11<br />

C 3.12<br />

C 3.13<br />

Significant changes from previous <strong>report</strong>ing periods<br />

in the scope, boundary, or measurement methods<br />

applied in the <strong>report</strong><br />

Table identifying the location of the standard<br />

disclosures in the <strong>report</strong><br />

Policy and current practice with regard to seeking<br />

external assurance for the <strong>report</strong> (including scope<br />

and basis of any external assurance provided, and<br />

explanation of the relationship between the <strong>report</strong>ing<br />

organization and the assurance provider(s))<br />

Governance Structure and Management Systems<br />

C 4.1<br />

C 4.2<br />

C 4.3<br />

C 4.4<br />

Governance structure of the organization, including<br />

committees under the board of directors responsible<br />

for setting strategy and for organizational oversight<br />

Indication whether the Chair of the highest<br />

governance body is also an executive officer (if so, his<br />

function in the organization and the reasons for this<br />

arrangement)<br />

Percentage of the board of directors that are<br />

independent, non-executive directors<br />

Mechanism for shareholders and employees to<br />

provide recommendations or direction to the board of<br />

directors<br />

Global<br />

Compact<br />

Principle<br />

1-10<br />

Principle<br />

1-10<br />

Principle<br />

1-10<br />

Principle<br />

1-10<br />

Print (page) Web Further information<br />

Degree<br />

Profile<br />

Overview<br />

Profile<br />

14<br />

20, 21<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

See the Report Profile<br />

–<br />

The external statements published in the<br />

Sustainability Report reflect the independent<br />

opinions of the respective external experts on a<br />

specific topic area (environment, employees).<br />

These independent opinions of the external<br />

experts do not necessarily reflect those of<br />

<strong>Daimler</strong> AG. The external experts base their<br />

statements on the information they receive from<br />

the company as well as on the findings gained<br />

and conclusions reached during their discussions<br />

with individuals from various departments at<br />

<strong>Daimler</strong>. To this end, the basis for each external<br />

statement is specified in a memorandum of<br />

understanding with the external expert in<br />

question. The organizations or individuals<br />

making the statements are in no way dependent<br />

on <strong>Daimler</strong>. The authors of the statements are<br />

not remunerated in any way. The company has<br />

merely reimbursed the travel costs that have<br />

accrued in the course of preparing the external<br />

statements.<br />

According to German law, the role of the<br />

Chairman of the Board of Management and that<br />

of the Chairman of the Supervisory Board are<br />

strictly separated (see also Annual Report,<br />

p. 110; www.daimler.com/corpgov_e).<br />

According to German law, the role of the<br />

Chairman of the Board of Management and that<br />

of the Chairman of the Supervisory Board are<br />

strictly separated (see also Annual Report,<br />

p. 110; www.daimler.com/corpgov_e).<br />

See Annual Report, p. 110,<br />

www.daimler.com/corpgov_e<br />


4 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Governance Structure and Management Systems<br />

C 4.5<br />

C 4.6<br />

C 4.7<br />

C 4.8<br />

C 4.9<br />

C 4.10<br />

C 4.11<br />

C 4.12<br />

Linkage between executive compensation and<br />

achievement of the organization’s financial and nonfinancial<br />

goals (e. g., environmental performance,<br />

labour practices)<br />

Processes in place for the board of directors to<br />

ensure conflicts of interest are avoided<br />

Process for determining the qualifications and<br />

expertise of the members of the board of directors for<br />

guiding the organization’s strategy on economic,<br />

environmental, and social performance<br />

Internally developed statements of mission or values,<br />

codes of conduct, and principles relevant to<br />

economic, environmental, and social performance<br />

and their status of implementation<br />

Procedures of the board of directors for overseeing<br />

the organization’s identification and management of<br />

economic, environmental, and social performance,<br />

including relevant risks and opportunities, and<br />

adherence or compliance with internationally agreed<br />

standards, codes of conduct, and principles<br />

Processes for evaluating the board of directors’ own<br />

performance, particularly with respect to economic,<br />

environmental, and social performance<br />

Explanation of whether and how the precautionary<br />

approach or principle is addressed <strong>by</strong> the organisation<br />

Externally developed economic, environmental, and<br />

social charters, principles, or other initiatives to<br />

which the organization subscribes or endorses<br />

Global<br />

Compact<br />

Principle<br />

1-10<br />

Principle<br />

1-10<br />

Principle<br />

1-10<br />

Principle<br />

1-10<br />

Principle<br />

1-10<br />

Principle 7<br />

Principle<br />

1-10<br />

Print (page) Web Further information<br />

Degree<br />

54, 55<br />

14, 15<br />

14, 15<br />

15, 16<br />

13–16<br />

13–16<br />

13–16, 58<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

The remuneration of BoM members consists of<br />

three components. These are non-performancebased,<br />

short-term performance-based, and<br />

performance-based elements that include<br />

medium and long-term bonus incentives (see<br />

Annual Report 2007, pp. 116-121). Because of<br />

<strong>Daimler</strong>’s voluntary commitment to sustainability,<br />

the success of the Group is inevitably linked<br />

to the corresponding content, which is thus an<br />

indirect component of the fundamental goals for<br />

achieving success.<br />

Within the Board of Management there are<br />

processes to ensure that conflicts of interest are<br />

avoided. These processes are documented in<br />

the Rules of Procedure for the Board of<br />

Management (see also Annual Report, p. 110 ff.).<br />

In line with the recommendations of the German<br />

Corporate Governance Code, processes are in<br />

place to ensure high qualifications and<br />

professional expertise within the Board of<br />

Management. For <strong>Daimler</strong>’s Declaration of<br />

Compliance with the Corporate Governance<br />

Code, see pp. 122-123 of the Annual Report.<br />

–<br />

The Board of Management has processes that<br />

help it manage sustainability at the company.<br />

These processes are sustainably supported <strong>by</strong><br />

the Sustainability Board, which was established<br />

in 2007. The Sustainability Board is headed <strong>by</strong><br />

the Board of Management member for Corpo rate<br />

Development and <strong>report</strong>s to the Chairman.<br />

In line with the recommendations of the German<br />

Corporate Governance Code, efficiency<br />

evaluations are made on a regular basis. The<br />

performance-related remuneration of Board of<br />

Management members is disclosed in the<br />

Annual Report, p. 117.<br />

–<br />


5 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Governance Structure and Management Systems<br />

C 4.13<br />

C 4.14<br />

C 4.15<br />

C 4.16<br />

C 4.17<br />

Economy<br />

EC0 DMA<br />

EC1 Core<br />

EC2 Core<br />

Memberships in association and/or national/<br />

international advocacy organizations in which the<br />

organization is on the board, participates in projects<br />

or committees, provides substantive funding beyond<br />

routine membership dues or views membership as<br />

strategic<br />

List of stakeholder groups engaged <strong>by</strong> the organization<br />

Basis for identification and selection of stakeholders<br />

with whom to engage<br />

Approaches to stakeholder engagement, including<br />

frequency of engagement <strong>by</strong> type and <strong>by</strong> stakeholder<br />

group<br />

Key topics and concerns that have been raised<br />

through stakeholder engagement, and how the<br />

organization has responded to those key topics and<br />

concerns, including through its <strong>report</strong>ing<br />

Direct economic value generated and distributed,<br />

including revenues, operating costs, employee<br />

compensation, donations and other community<br />

investments, retained earnings, and payment to<br />

capital providers and governments<br />

Financial implications and other risks and<br />

opportunities for the organization‘s activities<br />

due to climate change<br />

Global<br />

Compact<br />

Principle<br />

1, 4, 6 and 7<br />

Principle 7<br />

Print (page) Web Further information<br />

Degree<br />

20, 21<br />

20, 21<br />

20, 21<br />

20, 21<br />

20, 21<br />

13–21<br />

24, 27, 54–56,<br />

65, 66<br />

16–18, 30–46<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

–<br />

–<br />

–<br />

Due to the multitude of stakeholder contacts at<br />

the local, national, and international levels in the<br />

different business units (and their departments),<br />

the frequency and type of contact are recorded<br />

centrally only in part. To find out about the<br />

further development of <strong>Daimler</strong>’s dialogue with<br />

its stakeholders, see also the goals section<br />

(p. 70).<br />

–<br />

For further information about the economic<br />

management approach, see also the Annual<br />

Report (responsibilities of the Board of Management<br />

members, pp. 8-9; Corporate Strategy. pp.<br />

36-39; internal financial controlling measures,<br />

pp. 47 f.).<br />

See also the Annual Report, p. 137<br />

Statements in the “Risk Report” of the Annual<br />

Report


6 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Economy<br />

EC3 Core Coverage of the organization’s defined benefit plan<br />

obligations<br />

Global<br />

Compact<br />

Print (page) Web Further information<br />

Degree<br />

53 x The GRI indicator EC3 refers to the type of pension<br />

offered to employees. We think it unlikely<br />

that defined benefits to pensions can be more<br />

effectively assessed than defined contributions.<br />

By providing company pension schemes, a corporation<br />

has substantial long-term obligations<br />

toward its employees. It is crucial for the company<br />

that the promised services are predictable,<br />

achievable, and low-risk.<br />

It is difficult to portray all of the pension-related<br />

data for the entire Group, because the pension<br />

plans in the various countries and companies<br />

differ greatly with regard to legal requirements<br />

and market needs. The figures for liabilities and<br />

coverage are taken from the Consolidated<br />

Financial Statements for 2007. It is also very<br />

questionable whether the pension plan’s<br />

sustainability can be assessed on the basis of<br />

the current funded status, since the funds are<br />

very volatile when they are invested in assets.<br />

Such fluctuations can result in a lower level of<br />

funding at the end of the year.<br />

The company offers retirement benefits in the<br />

form of pension plans. <strong>Daimler</strong> offers defined<br />

benefit pension plans as well as defined contribution<br />

plans. In Germany, it is illegal to offer<br />

retirement benefits solely as defined contribution<br />

plans. <strong>Daimler</strong> AG offers defined contribution<br />

plans to its executives, and defined benefit plans<br />

to employees subject to collective bargaining<br />

agreements. <strong>Daimler</strong> provides retirement benefits<br />

through external measures as well as through<br />

direct offerings. The capital for covering the<br />

liabilities of the employer’s direct offerings are<br />

invested in separate, outsourced funds. As of<br />

December 31, 2007, the present value of the<br />

<strong>Daimler</strong> Group’s defined benefit obligations was<br />

€ 15,686 million. Deducting fair value of plan<br />

assets of € 13,774 million leaves a funded status<br />

of € 1,912 million. The balance sheet lists € 3,038<br />

million in provisions for pensions and similar<br />

obligations. In addition, there are provi-sions<br />

totaling € 790 million for post-employment<br />

health and life-insurance benefits. The figures<br />

were taken from the Notes to the Consolidated<br />

Financial Statements. According to <strong>Daimler</strong>’s<br />

Pension Policy, the Group’s pension plans should<br />

be designed to conform with the general market<br />

usage of the country in question. Since pension<br />

levels vary greatly worldwide, it’s not possible to<br />

say how high they generally are as a percentage<br />

of the employees’ wages and salaries. In addition,<br />

the <strong>Daimler</strong> Group also offers retirement benefits<br />

that are not dependent on an employee’s<br />

remuneration. General statements cannot be<br />

made regarding these benefits. In Germany, for<br />

example, all permanent employees of <strong>Daimler</strong><br />

AG have a right to a pension. The figures were<br />

taken from the Notes to the Annual Report.


7 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Economy<br />

EC4 Core<br />

EC5 Add<br />

EC6 Core<br />

EC7 Core<br />

EC8 Core<br />

EC9 Add<br />

Significant financial assistance received from<br />

government<br />

Range of ratios of standard entry level wage<br />

compared to local minimum wage at significant<br />

locations of operation<br />

Policy, practices, and proportion of spending on<br />

locally-based suppliers at significant locations of<br />

operation<br />

Procedures for local hiring and proportion of senior<br />

management hired from the local community at<br />

locations of significant operation<br />

Development and impact of infrastructure<br />

investments and services provided primarily for<br />

public benefit through commercial, in-kind or pro<br />

bono engagement<br />

Understanding and describing significant indirect<br />

economic impacts, including the extent of impacts<br />

Global<br />

Compact<br />

Principle 1<br />

Principle 6<br />

Print (page) Web Further information<br />

Degree<br />

54<br />

27<br />

26<br />

26, 65–68<br />

26–27<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

Financial assistance can be provided not only <strong>by</strong><br />

the German federal government but also <strong>by</strong><br />

state, local, and municipal governments, and the<br />

form such support takes can vary (e. g. direct<br />

subsidies, sale of property at reduced prices, tax<br />

breaks, etc.). But a detailed provision of such<br />

information is strictly business confidential.<br />

See Annual Report, p. 137 f.<br />

Reporting on the Group’s purchasing volume<br />

represents only one of many possibilities for<br />

quantifying procurement performance. In<br />

addition, there are several different ways to<br />

define and interpret such figures, which results<br />

in less clarity and transparency. <strong>Daimler</strong><br />

therefore no longer <strong>report</strong>s on its procurement<br />

volumes.<br />

–<br />

As an international company, <strong>Daimler</strong> harnesses<br />

the diversity of its employees, without which it<br />

could not be as innovative and creative in its<br />

products and markets. The great majority of<br />

<strong>Daimler</strong>’s executives worldwide were developed<br />

and promoted from the company’s local<br />

management. These executives have gone<br />

through local, regional and, in some cases,<br />

international stages of development in a wide<br />

variety of the company’s competence and<br />

decision-making centers and divisions.<br />

Temporary regional and international assignments<br />

are crucial in this regard, as they not only<br />

enable the executives to gain the required<br />

knowledge and skills but also provide assistance<br />

to the business units that are in need of<br />

knowledge transfer and direct support. These<br />

assignments go hand in hand with the many<br />

successful and ongoing efforts to promote local<br />

talents and high potentials through direct<br />

recruitment and <strong>Daimler</strong>’s globally uniform<br />

trainee program CAReer.<br />

–<br />


8 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Environment<br />

EN0 DMA<br />

EN1 Core<br />

EN2 Core<br />

EN3 Core<br />

EN4 Core<br />

EN5 Add<br />

EN6 Add<br />

EN7 Add<br />

EN8 Core<br />

EN9 Add<br />

EN10 Add<br />

Materials used <strong>by</strong> weight or volume<br />

Percentage of materials used that are recycled input<br />

materials<br />

Direct energy consumption <strong>by</strong> primary source<br />

Indirect energy consumption <strong>by</strong> primary source<br />

Energy saved due to conservation and efficiency<br />

improvements<br />

Initiatives to provide energy-efficient or renewable<br />

energy based products and services, and<br />

reductions in energy requirements as a result of<br />

these initiatives<br />

Initiatives to reduce indirect energy consumption<br />

and reductions achieved<br />

Total water withdrawal <strong>by</strong> source<br />

Water sources significantly affected <strong>by</strong> withdrawal<br />

of water<br />

Percentage and total volume of water recycled and<br />

reused<br />

Global<br />

Compact<br />

Principle<br />

7, 8, 9<br />

Principle 8<br />

Principle 8, 9<br />

Principle 8<br />

Principle 8<br />

Principle 8, 9<br />

Principle 8, 9<br />

Principle 8, 9<br />

Principle 8<br />

Principle 8<br />

Principle 8, 9<br />

Print (page) Web Further information<br />

Degree<br />

16–18<br />

35<br />

39–40<br />

39–40<br />

40<br />

30–35<br />

41<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

–<br />

Not <strong>report</strong>ed on, as it is not relevant for <strong>Daimler</strong>.<br />

Providing a simple figure of mass makes little<br />

sense in the automotive industry, because unlike<br />

the basic and raw materials industries, the<br />

automotive sector mainly processes complex<br />

elements which themselves consist of various<br />

types of raw material components.<br />

Mass of approved recycled components<br />

–<br />

Only consumption of secondary energy. (Because<br />

of the multitude of international locations, there<br />

is no itemization of all consumption of primary<br />

energy through the external production of heat<br />

and electricity. However, the CO calculation<br />

2<br />

takes into account the CO factors that differ in<br />

2<br />

terms of time and region.)<br />

–<br />

–<br />

A Group-wide survey has not been conducted.<br />

Water is not taken from areas with sensitive<br />

ecosystems.<br />

–<br />

The water circulation systems are state-of-theart<br />

and data on them is not recorded throughout<br />

the entire Group.


9 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Environment<br />

EN11 Core<br />

EN12 Core<br />

EN13 Add<br />

EN14 Add<br />

EN15 Add<br />

EN16 Core<br />

EN17 Core<br />

EN18 Add<br />

EN19 Core<br />

EN20 Core<br />

Localization and size of land owned, leased,<br />

managed in, or adjacent to, protected areas and<br />

areas of high biodiversity value outside protected<br />

areas<br />

Description of significant impacts of activities,<br />

products, and services on biodiversity in protected<br />

areas of high biodiversity value outside protected<br />

areas<br />

Habitats protected or restored<br />

Strategies, current actions, and future plans for<br />

managing impacts on biodiversity<br />

Number of IUCN Red List species and national<br />

conservation list species with habitats in areas<br />

affected <strong>by</strong> operations, <strong>by</strong> level of extinction risk<br />

Total direct and indirect green house gas emissions<br />

<strong>by</strong> weight<br />

Other relevant indirect greenhouse gas emissions<br />

<strong>by</strong> weight<br />

Initiatives to reduce greenhouse gas emissions and<br />

reductions achieved<br />

Emissions of ozone-depleting substances <strong>by</strong> weight<br />

NO, SO, and other significant air emissions <strong>by</strong> type<br />

and weight<br />

Global<br />

Compact<br />

Principle 8<br />

Principle 8<br />

Principle 8<br />

Principle 8<br />

Principle 8<br />

Principle 8<br />

Principle 8<br />

Principle<br />

7, 8, 9<br />

Principle 8<br />

Principle 8<br />

Print (page) Web Further information<br />

Degree<br />

39–41<br />

39<br />

38–41<br />

39–41<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

Not <strong>report</strong>ed on, as it is not relevant for <strong>Daimler</strong>.<br />

Internal assessments of environmental risk<br />

conducted at <strong>Daimler</strong> list all the production<br />

facilities located in protected or environmentally<br />

endangered areas. At the moment, only the<br />

production plant in Rastatt, Germany, is located<br />

near a nature reserve (as defined <strong>by</strong> EU Directive<br />

92/43/EEC of May 21, 1992 on the Conservation<br />

of Natural Habitats and of Wild Fauna and<br />

Flora). Appropriate measures in this regard were<br />

decided upon during the planning stage for the<br />

production facility. The facility plan also set<br />

aside special areas at the location to accommodate<br />

rare and endangered species. The associated<br />

measures received a positive review from<br />

independent external auditors ten years after<br />

the launch of production activities in Rastatt.<br />

No direct effects on biodiversity.<br />

See the note to EN11<br />

See the note to EN11<br />

Not <strong>report</strong>ed because it is irrelevant.<br />

Partially <strong>report</strong>ed with regard to logistics.<br />

–<br />

–<br />

In accordance with the Montreal Protocol on<br />

Substances That Deplete the Ozone Layer, as<br />

well as various national regulations, the use of<br />

substances that damage the ozone layer is<br />

limited to the amounts needed to maintain the<br />

operation of existing production equipment that<br />

requires them. The particularly dangerous<br />

substances R11 and R12 have been replaced<br />

worldwide with less critical materials. No<br />

measurements are made of the quantity of<br />

ozone-depleting substances used for the<br />

operation of existing production equipment at<br />

international production locations.<br />

Only solvent emissions are <strong>report</strong>ed on in the<br />

brochure; other airborne emissions are <strong>report</strong>ed<br />

on in the Internet.


10 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Environment<br />

EN21 Core<br />

EN22 Core<br />

EN23 Core<br />

EN24 Add<br />

EN25 Add<br />

EN26 Core<br />

EN27 Core<br />

EN28 Core<br />

EN29 Add<br />

EN30 Add<br />

Total water discharge <strong>by</strong> quality and destination<br />

Total weight of waste <strong>by</strong> type and disposal method<br />

Total number and volume of significant spills<br />

Weight of transported, imported, exported, or<br />

treated waste deemed hazardous under the terms<br />

of the Basel Convention Annex I, II, III and VIII, and<br />

percentage of transported waste shipped internationally<br />

Identity, size, protected status, and biodiversity<br />

value of water bodies and related habitats<br />

significantly affected <strong>by</strong> the <strong>report</strong>ing organization’s<br />

discharges of water and runoff<br />

Initiatives to mitigate environmental impacts of<br />

products and services, and extent of impact<br />

mitigation<br />

Percentage of products sold and their packaging<br />

materials that are reclaimed <strong>by</strong> category<br />

Monetary value of significant fines and total number<br />

of non-monetary sanctions for non-compliance with<br />

environmental laws and regulations<br />

Significant environmental impacts of transporting<br />

products and other goods and materials used for<br />

the organization’s operations, and transporting<br />

members of the workforce<br />

Total environmental protection expenditures and<br />

investments <strong>by</strong> type<br />

Global<br />

Compact<br />

Principle 8<br />

Principle 8<br />

Principle 8<br />

Principle 8<br />

Principle 8<br />

Principle<br />

7, 8, 9<br />

Principle 8, 9<br />

Principle 8<br />

Principle 8<br />

Principle<br />

7, 8, 9<br />

Print (page) Web Further information<br />

Degree<br />

39<br />

42–43<br />

40<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

Not <strong>report</strong>ed, because very few plants discharge<br />

waste water directly into surface waters and<br />

these plants have to meet widely varying<br />

requirements. (See the environmental statements<br />

for the plants in Wörth and Gaggenau.)<br />

Waste management is only differentiated with<br />

regard to disposal (dumping or incineration) and<br />

recycling.<br />

No significant incidents over the period under<br />

review; minor incidents are not recorded on a<br />

worldwide basis.<br />

Waste is not exported as defined <strong>by</strong> the Basel<br />

Convention.<br />

The impact on bodies of water is negligible.<br />

No packaging for vehicles is needed.<br />

CAFE penalty payment for <strong>Daimler</strong>.<br />

No Group-wide survey possible.<br />

The numbers are published on the Internet,<br />

although they have not been broken down <strong>by</strong><br />

category.<br />


11 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Labour Practice and Decent Work<br />

LA DMA<br />

LA1 Core<br />

LA2 Core<br />

LA3 Add<br />

LA4 Core<br />

LA5 Core<br />

LA6 Add<br />

Total workforce <strong>by</strong> employment type, employment<br />

contract, and region<br />

Total number and rate of employee turnover <strong>by</strong> age<br />

group, gender, and region<br />

Benefits provided to full-time employees that are<br />

not provided to temporary or part-time employees,<br />

<strong>by</strong> major operations<br />

Percentage of employees covered <strong>by</strong> collective<br />

bargaining agreements<br />

Minimum notice period(s) regarding operational<br />

changes, including whether it is specified in<br />

collective agreements<br />

Percentage of total workforce represented in joint<br />

management-worker health and safety committees<br />

that help monitor and advice on occupational health<br />

and safety programs<br />

Global<br />

Compact<br />

Principle<br />

1, 3, 6<br />

Principle 6<br />

Principle 1, 3<br />

Principle 3<br />

Principle 1<br />

Print (page) Web Further information<br />

Degree<br />

13–16, 18–20<br />

52–53<br />

52<br />

53<br />

54<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

–<br />

–<br />

–<br />

Basically, all benefits provided to full-time<br />

employees are also available to part-time staff.<br />

One exception here is the provision of company<br />

cars. If a manager at <strong>Daimler</strong> AG in Germany<br />

works less than 20 hours of the normal working<br />

time (full time) on average, he or she is not<br />

eligible for a company car. There are a number of<br />

special rules for temporary employees.<br />

More than 90 % of the Group’s employees in<br />

Germany are covered <strong>by</strong> collective bargaining<br />

agreements. Some of <strong>Daimler</strong>’s companies are<br />

not subject to collective bargaining agreements.<br />

The Works Council is to be informed <strong>by</strong> the<br />

company of all cases of significant operational<br />

changes. Depending on specific legally defined<br />

threshold values, the company is to negotiate a<br />

bargaining agreement with the Works Council<br />

concerning the operational changes and their<br />

consequences. All <strong>Daimler</strong> employees receive<br />

timely information (via internal communication<br />

media) concerning significant operational<br />

changes.<br />

The company has work safety committees that<br />

meet once every three months:<br />

– There is such a committee at every production<br />

location (11 in all, excluding those at LLCs) at<br />

the level of the plant director<br />

– There’s a committee at every retail branch (34<br />

locations) at the level of the branch director<br />

The committees’ activities, resolutions, etc. are<br />

disseminated <strong>by</strong> location-specific organizations<br />

(e. g. unit work safety committees) and/or<br />

specific groups of employees (e. g. managers,<br />

safety officers). <strong>This</strong> approach ensures that all<br />

employees are notified. Because the committees<br />

contain representatives from management and<br />

the labor councils, all of a location’s employee<br />

groups are represented on the work safety<br />

committee.<br />

– Direct participants in the work safety<br />

committee: up to 25 %<br />

– Percentage of employees who are directly<br />

affected <strong>by</strong> the work safety committee’s<br />

activities: between 25 % and 50 %<br />

– Percentage who are affected <strong>by</strong> the<br />

committee’s decisions: more than 75 %


12 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Labour Practice and Decent Work<br />

LA7 Core<br />

LA8 Core<br />

Rates of injury, occupational diseases, lost days,<br />

and absenteeism, and number of work-related fatalities<br />

<strong>by</strong> region<br />

Education, training, counselling, prevention and<br />

risk-control programs in place to assist workforce<br />

members, their families, or community members<br />

regarding serious diseases<br />

Global<br />

Compact<br />

Principle 1<br />

Principle 1<br />

Print (page) Web Further information<br />

Degree<br />

55–56<br />

55–56<br />

x<br />

x<br />

Drawing up the <strong>report</strong>:<br />

2.1 The following presentation of the accident<br />

figures for all <strong>Daimler</strong> AG locations in 2007 was<br />

made in accordance with the definitions laid<br />

down <strong>by</strong> the German automotive industry. The<br />

figures refer to the (previous) wage-earning staff.<br />

2.2 Incl. minor cases, i. e. injuries without a visit<br />

<strong>by</strong> an accident insurance consultant (per 1<br />

million hours): 145<br />

2.3 Missed days are based on the (planned)<br />

number of working days<br />

– Missed days are counted from the day after<br />

the one on which the accident occurred<br />

2.4 Note: excluding employees and workers from<br />

external companies. Figures for all <strong>Daimler</strong> AG<br />

locations in 2007:<br />

– Accident log cases (per 1 million hours): 171<br />

– Minor cases (per 1 million hours): 145<br />

– Total number of accident insurance consultant<br />

cases (per 1 million hours): 26<br />

– Number of accident insurance consultant<br />

cases with missed days (per 1 million<br />

hours): 15.3<br />

– Number of missed days (per 1 million<br />

hours): 152<br />

– Number of missed days (per 1 million<br />

hours): 152<br />

(The rates of absenteeism and work-related illnesses<br />

are not included in the work safety <strong>report</strong>)<br />

2.5 Number of fatal industrial accidents in<br />

2007: 0 (Note: 2 fatal accidents of employees<br />

from external companies)<br />

2.6 The accident documentation/information<br />

system Cubus-Safety is used at most <strong>Daimler</strong> AG<br />

locations.<br />

The measures against HIV/AIDS (including those<br />

outside South Africa) have already been explained<br />

in the section Facts/Goals. Additional information<br />

on the table regarding the support programs (2.1):<br />

South Africa (all categories should be answered<br />

with “YES”). The HIV/AIDS workplace program in<br />

South Africa encompasses education measures,<br />

advice for those diagnosed with infections, prevention<br />

and risk controls, and treatment. The target<br />

group includes employees and their family members.<br />

The program has also been expanded to<br />

cover suppliers and dealers. General practitioners,<br />

practitioners of traditional medicine, and peer<br />

educators in schools have been trained. In addition,<br />

support has been provided for social projects.<br />

In Germany, other indications, such as diabetes,<br />

are countered with awareness-raising measures,<br />

preventive examinations, and targeted prevention<br />

programs. Other national subsidiaries (e. g.<br />

China) also are conducting awareness-raising<br />

activities. The company is combating the dangers<br />

of stress (plant physician, employee health<br />

improvement programs, personal counseling).


13 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Labour Practice and Decent Work<br />

LA9 Add<br />

LA10 Core<br />

LA11 Add<br />

Health and safety topics covered in formal<br />

agreements with trade unions<br />

Average hours of training per year per employee <strong>by</strong><br />

employee category<br />

Programs for skills management and lifelong<br />

learning that support the continued employability of<br />

employees and assist them in managing career<br />

endings<br />

Global<br />

Compact<br />

Principle 1 54–56<br />

Print (page) Web Further information<br />

Degree<br />

47, 48<br />

55, 56<br />

x<br />

x<br />

x<br />

There are formal agreements with the Works<br />

Council that govern matters of occupational<br />

safety. The following formal general agreements<br />

are in place:<br />

1. Framework directive for occupational safety<br />

management<br />

2. Occupational health and safety guidelines<br />

3. Occupational safety directive for noise<br />

abatement<br />

4. Occupational safety directive for security<br />

personnel<br />

5. Occupational safety directive for personal<br />

protective equipment<br />

6. General Works Agreement on conducting<br />

hazard assessments<br />

7. Works agreement governing working with<br />

monitors and computer displays<br />

The following local agreements are in place:<br />

8. Local regulations regarding the committees<br />

9. Voluntary General Works Agreement<br />

governing employee qualification programs<br />

Personal protective equipment (see 5.).<br />

Work safety committee (see 8.).<br />

Participation in occupational safety inspections,<br />

audits, ... (see 6.).<br />

Vocational training and development (see 9.).<br />

Complaint process (see 2.).<br />

The right to refuse unsafe work assignments<br />

(see 2.).<br />

Regularly scheduled inspections (see 6.).<br />

–<br />

The company essentially offers a variety of<br />

alternatives for qualification. The General Works<br />

Agreement “Qualifications”, for example, offers<br />

a wide variety of options for personal and career<br />

development. According to the terms of this<br />

company agreement, employees are entitled to<br />

take up to three years’ leave of absence from the<br />

company to continue their training or education.<br />

Similar opportunities are provided <strong>by</strong> the<br />

company agreement governing part-time<br />

employment, which also allows a limited leave of<br />

absence (sabbatical) from the company. <strong>Daimler</strong><br />

AG offered professional outplacement<br />

consulting services to improve career prospects<br />

outside the Group for managers and employees<br />

affected <strong>by</strong> implementation of the New<br />

Management Model (NMM). More than 130<br />

executive managers and about 150 non-exempt<br />

employees have taken advantage of this offer to<br />

date. Ninety percent of the individual consulting<br />

cases for managers were successfully concluded<br />

during the 12-month separation process that<br />

was contractually agreed on as part of the<br />

voluntary severance agreement. The average<br />

consulting period for individual cases was seven


14 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Labour Practice and Decent Work<br />

LA12 Add<br />

LA13 Core<br />

LA14 Core<br />

Percentage of employees receiving regular<br />

performance and career development reviews<br />

Composition of governance bodies and breakdown<br />

of employees per category according to gender, age<br />

group, minority group membership, and other<br />

indicators of diversity<br />

Ratio of basic salary of men to women <strong>by</strong> employee<br />

category<br />

Global<br />

Compact<br />

Principle 1, 6<br />

Principle 1, 6<br />

Print (page) Web Further information<br />

Degree<br />

55, 56<br />

56–58<br />

56–58<br />

x<br />

x<br />

x<br />

months. Sixty percent of the management<br />

personnel affected have taken jobs in various<br />

industrial sectors, and about 40 percent have<br />

elected to become self-employed.<br />

100 percent of managers (worldwide). Approximately<br />

50 percent of non-exempt employees.<br />

Information regarding non-management foreign<br />

employees (worldwide) is obtainable only at a<br />

prohibitively high cost. <strong>Daimler</strong> AG uses the<br />

standardized LEAD process for the evaluation<br />

and development of its management personnel.<br />

All Group managers are covered <strong>by</strong> this process,<br />

which also covers office workers who have the<br />

potential to move into entry-level management<br />

positions. A goal for 2008 is to ensure that<br />

<strong>Daimler</strong> AG’s external communication measures<br />

on the LEAD process are even more transparent<br />

than ever before. The ERA remuneration will be<br />

in effect for <strong>Daimler</strong> AG’s non-exempt employees,<br />

effective from 2008. The NAVI performance<br />

appraisal process is to be implemented for<br />

technical and administrative positions<br />

(approximately 50 percent of the workforce),<br />

with a variability of between zero and 30 percent<br />

of the basic scale salary. The annual management<br />

process also deals with qualification and<br />

career development. DFS Germany (<strong>Daimler</strong><br />

Financial Services) uses a comparable<br />

performance appraisal for 100 percent of the<br />

non-exempt employees in Germany (= 5,000<br />

employees). Until 2010 there will be a fixed<br />

remuneration structure in production and<br />

production-related areas of <strong>Daimler</strong> AG, and the<br />

NAVI performance appraisal process will not be<br />

in use until that time. Employee qualification<br />

measures will be planned and implemented<br />

within the framework of the production system.<br />

Disclosure of the composition of the Board of<br />

Management and the Supervisory Board<br />

according to gender, age group, and minority<br />

group membership can be found on the Internet<br />

at www.daimler.com/corpgov_e, in the Annual<br />

Report (pp. 8–9, 124–125) and in Form 20F (p. 2).<br />

According to internal experts, the indicator<br />

LA 14 is not an appropriate factor. It would be<br />

preferable to begin with the fundamental<br />

question of whether all employees in a specific<br />

employee category are subject to the same<br />

remuneration system.


15 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Human Rights<br />

HR DMA<br />

HR1 Core<br />

HR2 Core<br />

HR3 Add<br />

HR4 Core<br />

Percentage and total number of significant<br />

investment agreements that include human rights<br />

clauses or that have undergone human rights<br />

screenings<br />

Percentage of significant suppliers and contractors<br />

that have undergone screening on human rights and<br />

action taken<br />

Total hours of employee training on policies and<br />

procedures concerning aspects of human rights<br />

that are relevant to operations, including the<br />

percentage of employees trained<br />

Total number of incidents of discrimination and<br />

actions taken<br />

Global<br />

Compact<br />

Principle 1,<br />

2, 3, 4, 5, 6<br />

Principle 1,<br />

2, 3, 4, 5, 6<br />

Principle 1,<br />

2, 3, 4, 5, 6<br />

Principle 1,<br />

2, 3, 4, 5, 6<br />

Principle<br />

1, 2, 6<br />

Print (page) Web Further information<br />

Degree<br />

13–16, 58<br />

15<br />

58<br />

x<br />

x<br />

x<br />

x<br />

x<br />

Information on the management approach is<br />

integrated into individual subchapters (e. g. see<br />

p. 43 ff., p. 80 ff.).<br />

For a globally operating company like <strong>Daimler</strong>,<br />

the registration of such an index would only be<br />

possible with unreasonable effort. Generally we<br />

consider human rights issues in all our business<br />

engagements and relations. For a further<br />

improvement concerning human rights related<br />

issues in our company we recently established a<br />

task force. It must be pointed out that <strong>Daimler</strong><br />

has coordinated the principles of social responsibility<br />

with the World Employee Committee.<br />

These principles include the requirement placed<br />

on suppliers and business partners to implement<br />

corresponding principles in their turn.<br />

Active communication with our suppliers is<br />

carried out via the <strong>Daimler</strong> Supplier Portal,<br />

mailings, and the Global Supplier Magazine. All<br />

suppliers also receive the <strong>Daimler</strong> Integrity Code<br />

and pledge to abide <strong>by</strong> it. There is no active<br />

monitoring of such compliance.<br />

Quantifiable data is not available here, as the<br />

expense and effort required to collect it cannot<br />

be justified. <strong>Daimler</strong>’s Principles of Social<br />

Responsibility are reflected in detail in internal<br />

guidelines such as the <strong>Daimler</strong> Integrity Code,<br />

which is provided to each new employee when<br />

he or she begins work. Executive management<br />

receives particularly extensive training in this<br />

area.<br />

On the basis of <strong>Daimler</strong>’s Principles of Social<br />

Responsibility and the <strong>Daimler</strong> Integrity Code,<br />

an initiative has been launched which is called<br />

“Fairer Umgang am Arbeitsplatz” (brochure<br />

available only in German). The BPO (Business<br />

Practices Office), which is responsible for<br />

receipt and documentation of complaints and<br />

information concerning suspected violations<br />

against legal regulations and internal rules,<br />

received very few complaints in 2007. If<br />

incidents occur the BPO provides professional<br />

advice on the appropriate treatment of conflicts<br />

of interest and other relevant BPO issues, and<br />

<strong>report</strong>s the results and measures undertaken <strong>by</strong><br />

the Business Practices Committee to the Audit<br />

Committee and, if applicable, to the Chairman of<br />

the Board. The social counceling <strong>report</strong>ed an<br />

infinitesimal amount of incidents. Concrete<br />

numbers are at hand but they are business<br />

confidential. For the implementation and reviews<br />

of compliance, please refer to the section on<br />

Compliance (p. 114 f.).


16 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Human Rights<br />

HR5 Core<br />

HR6 Core<br />

HR7 Core<br />

HR8 Add<br />

HR9 Add<br />

Operations identified in which the right to exercise<br />

freedom of association and collective bargaining<br />

may be at significant risk, and actions taken to<br />

support these rights<br />

Operations identified as having significant risk for<br />

incidents of child labor, and measures taken to<br />

contribute to the elimination of child labor<br />

Operations identified as having significant risk<br />

for incidents of forced or compulsory labor, and<br />

measures to contribute to the elimination of forced<br />

to compulsory labor<br />

Percentage of security personnel trained in the<br />

organization’s policies or procedures concerning<br />

aspects of human rights that are relevant to<br />

operations<br />

Total number of incidents of violations involving<br />

rights of indigenous people and actions taken<br />

Global<br />

Compact<br />

Principle<br />

1, 2, 3<br />

Principle<br />

1, 2, 5<br />

Principle<br />

1, 2, 4<br />

Principle 1, 2<br />

Principle 1, 2<br />

Print (page) Web Further information<br />

Degree<br />

58<br />

x<br />

x<br />

x<br />

x<br />

x<br />

<strong>Daimler</strong> recognizes the human right of workers<br />

to organize along the lines of national legal<br />

regulations. The right to freedom of association<br />

is assured even in countries where freedom of<br />

association is not protected. <strong>This</strong> policy is based<br />

on our principles of social responsibility. In the<br />

case of violations of this principle, the business<br />

partner in question is reminded that <strong>Daimler</strong><br />

expects it to respect <strong>Daimler</strong>’s principles of<br />

social responsibility and to put the corresponding<br />

principles in place in its own organization. All<br />

<strong>report</strong>ed cases refer to suppliers. For this reason<br />

we cannot give further information. In addition,<br />

these cases are regularly <strong>report</strong>ed to the World<br />

Employee Committee (WEC) (cf. HR 1) and could<br />

be solved in the sense of the WEC.<br />

As no cases of child labour occured we have no<br />

operations identified.<br />

As no cases of forced compulsory labour<br />

occured we have no operations identified.<br />

No quantifiable data is available, since the<br />

compilation of it would require unjustifiable<br />

expenses.<br />

not <strong>report</strong>ed


17 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Society<br />

DMO<br />

Society<br />

SO1 Core<br />

SO2 Core<br />

Nature, scope, and effectiveness of any programs<br />

and practices that assess and manage the impact of<br />

operations on communities, including entering,<br />

operating, and exiting<br />

Percentage and total number of business units<br />

analysed for risk related to corruption<br />

Global<br />

Compact<br />

Principle 10<br />

Principle 10<br />

Print (page) Web Further information<br />

Degree<br />

13–16, 20–21,<br />

65–68<br />

58<br />

14–16<br />

x<br />

x<br />

–<br />

–<br />

In the process of setting up our compliance<br />

organization, we first identified the risks of<br />

corruption within the <strong>Daimler</strong> Group. We then<br />

classified and prioritized the resulting tasks in<br />

line with the scale of the risks. <strong>This</strong> was carried<br />

out according to countries and business units.<br />

In the months that followed, the resulting<br />

compliance measures plan, which was agreed<br />

upon with the supervisory committees, was<br />

systematically implemented. Since the beginning<br />

of 2006, for example, we have conduced<br />

“compliance reviews” in more than 30 sales<br />

companies and business units in over 25<br />

countries. In 47 sales companies and/or<br />

business units (including 20 units in 2007) we<br />

established standardized control systems that<br />

help to ensure behavior that is in keeping with<br />

the highest legal and ethical standards.<br />

Following the successful introduction of new<br />

processes and control systems, the affected<br />

business units are once again subjected to our<br />

internal auditing measures. The relevant risk<br />

parameters are regularly determined <strong>by</strong> <strong>means</strong><br />

of central databases, so that the compliance<br />

status that has been achieved is also sustained.<br />

Compliance due diligence measures are used to<br />

check the integrity of new sales partners. The<br />

relevant information is collected, processed, and<br />

analyzed <strong>by</strong> <strong>means</strong> of questionnaires and<br />

in-depth background research. When this<br />

preliminary investigation is concluded, a clear<br />

recommendation is issued <strong>by</strong> Corporate<br />

Compliance Operations and the Legal<br />

department. In addition, all general distributors,<br />

dealers, and agents have anti-corruption clauses<br />

in their contracts.


18 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Society<br />

SO3 Core<br />

SO4 Core<br />

SO5 Core<br />

SO6 Add<br />

SO7 Add<br />

SO8 Core<br />

Percentage of employees trained in the<br />

organization’s anti-corruption policies and<br />

procedures<br />

Actions taken in response to incidents of corruption<br />

Public policy positions and participation in public<br />

policy development and lob<strong>by</strong>ing<br />

Total value of financial and in-kind contributions to<br />

political parties, politicians and related institutions<br />

<strong>by</strong> country<br />

Total number of legal actions for anti-competitive<br />

behavior, anti-trust, and monopoly practices and<br />

their outcomes<br />

Monetary value of significant fines and total number<br />

of non-monetary sanctions for non-compliance with<br />

laws and regulations<br />

Global<br />

Compact<br />

Principle 10<br />

Principle 10<br />

Prinicple<br />

1-10<br />

Principle 10<br />

Print (page) Web Further information<br />

Degree<br />

14–16<br />

14–16<br />

68<br />

68<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

In the last two years, <strong>Daimler</strong> AG has conducted<br />

in-depth classroom courses for approximately<br />

9,000 employees, approximately half of whom<br />

were managers. In addition to a precisely defined<br />

e-learning program, which more than 3,000<br />

employees have completed, an animated<br />

compliance communication tool available on the<br />

intranet uses clear examples to convey the<br />

principles and aims of an effective compliance<br />

program. Over 26,000 employees have already<br />

used this intranet tool, and at the beginning of<br />

2008 it was made available in six additional<br />

languages, giving the training program an even<br />

wider range. As of December 31, 2007, about 14<br />

percent of the Groupcs 272,000 employees had<br />

received the training. Compliance-related content<br />

is also an integral element of the Group’s<br />

management training programs, information<br />

events, and specialized qualification programs.<br />

To provide even greater assurance that legal<br />

regulations and voluntarily applied principles are<br />

complied with, at the start of 2006 we began to<br />

develop a worldwide compliance organization,<br />

which today employs over 50 people. In addition,<br />

more than 40 local compliance managers have<br />

been appointed and trained. The extensive array<br />

of measures includes courses and training<br />

programs, a program of active communication<br />

and information for the benefit of employees and<br />

management, a comprehensive expansion of<br />

services and consulting, the creation of hotlines,<br />

the establishment of a worldwide network of<br />

compliance managers, a process of supplementing<br />

guidelines and standards and making<br />

them even more precise, and the appointment of<br />

a high-ranking external consultant for the<br />

Supervisory Board, the Board of Management,<br />

and the Audit Committee. The employment of<br />

several managers and employees has been<br />

terminated as a result of routine internal<br />

investigations.<br />

see Annual Report, pp. 112<br />

Fundamental legal disputes and proceedings as<br />

well as the connected risks are <strong>report</strong>ed in the<br />

Annual Report (p. 179–180)<br />

–<br />


19 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Product Responsibility<br />

DMA<br />

Product<br />

Responsibility<br />

PR1 Core<br />

PR2 Add<br />

PR3 Core<br />

Life cycle stages in which health and safety impacts<br />

of products and services are assessed for<br />

improvement, and percentage of significant<br />

products and services categories subject to such<br />

procedures<br />

Total number of incidents of non-compliance with<br />

regulations and voluntary codes concerning health<br />

and safety impacts of products and services during<br />

their life cycle, <strong>by</strong> type of outcomes<br />

Type of product and service information required <strong>by</strong><br />

procedures, and percentage of significant products<br />

and services subject to such information requirements<br />

Global<br />

Compact<br />

Principle<br />

1 and 8<br />

Principle1<br />

Principle 1<br />

Principle 8<br />

Print (page) Web Further information<br />

Degree<br />

13–16,<br />

53–56 x<br />

x<br />

x<br />

Due to the complexity of multiple brands within<br />

the Group, information on the management<br />

approach is integrated into different subchapters<br />

of this section (see, among others, the sections<br />

on vehicle safety on pp. 53-57, customer<br />

relationship management on p. 58 f., and goals on<br />

pp. 60-64).<br />

–<br />

<strong>Daimler</strong> makes extensive information available on<br />

all its products. <strong>This</strong> is carried out in accordance<br />

with clearly laid out principles within the<br />

individual business units. Representatives of<br />

automakers and suppliers worldwide have<br />

compiled a shared handbook on the EU regulation<br />

REACH (Registration, Evaluation, and Authorization<br />

of Chemicals). <strong>Daimler</strong> is currently in contact<br />

with suppliers in order to ensure that this<br />

regulation is being implemented within the Group<br />

and in the supplier chain actively and in line with<br />

legal requirements. Starting in mid-2008 the<br />

suppliers are required to previously register with<br />

the European Chemicals Agency in Helsinki all of<br />

their pure substances which will be put on the<br />

market in the EU.<br />

As a manufacturer of motor vehicles, <strong>Daimler</strong> AG<br />

is obligated to provide the users of its products<br />

with appropriate information regarding the proper<br />

utilization of such products and the risks<br />

associated with their use. The company must also<br />

warn users of the potential dangers associated<br />

with its products, particularly in relation to<br />

incorrect utilization — to the extent that such<br />

improper use can be foreseen. Safe, responsible,<br />

and secure operation of <strong>Daimler</strong> AG products is<br />

ensured <strong>by</strong> the provision of an operating manual<br />

that conforms to the level of knowledge<br />

possessed <strong>by</strong> the user. <strong>This</strong> owner’s manual is<br />

supplemented <strong>by</strong> additional information on how<br />

restraint and driver assistance systems function,<br />

as well as <strong>by</strong> technical information available on<br />

the Internet.<br />

One particular challenge here involves explaining<br />

how to operate ever-more complex functions and<br />

systems in a clear manner and working to ensure<br />

that the associated customer literature doesn’t<br />

become too difficult to understand. Effectively<br />

addressing this challenge ensures that customer<br />

acceptance of products will remain high. One<br />

approach used here is to reduce the amount of<br />

labeling on vehicle components — especially in<br />

the interior — to the minimum allowed <strong>by</strong> law.


20 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Product Responsibility<br />

PR4 Add<br />

PR5 Add<br />

PR6 Core<br />

PR7 Add<br />

PR8 Add<br />

Total number of incidents of non-compliance with<br />

regulations and voluntary codes concerning product<br />

and service information and labeling, <strong>by</strong> type of<br />

outcomes<br />

Practices related to customer satisfaction including<br />

results of surveys measuring customer satisfaction<br />

Programs for adherence to laws, standards, and<br />

voluntary codes related to marketing communications,<br />

including advertising, promotion, and<br />

sponsorship<br />

Total number of incidents of non-compliance with<br />

regulations and voluntary codes concerning<br />

marketing communications, including advertising,<br />

promotion, and sponsorship<br />

Total number of substantiated complaints<br />

regarding breaches of customer privacy and<br />

losses of customer data<br />

Global<br />

Compact<br />

Principle 8<br />

Principle 1<br />

Print (page) Web Further information<br />

Degree<br />

63–65<br />

14–16<br />

x<br />

x<br />

x<br />

x<br />

x<br />

A publication approval process that includes<br />

specialist and legal assessments of customer<br />

literature ensures that requirements with regard<br />

to product liability are met in such publications, in<br />

particular in vehicle operating and maintenance<br />

manuals.<br />

see PR2<br />

–<br />

–<br />

Sustained communication activities are<br />

indispensable for our premium brand,<br />

Mercedes-Benz. Important milestones in the<br />

overall communication development process have<br />

taken the form of various measures that ensure<br />

standardization of communication with both<br />

internal and external customers. More<br />

specifically, this involves adherence to a code of<br />

ethics when discussing assignments and the<br />

implementation of various approval processes in<br />

cooperation with the Legal Affairs department<br />

and other internal experts. We also ensure the<br />

appropriateness of our advertising measures <strong>by</strong><br />

conducting an extensive series of tests. All<br />

employees involved in sponsorship activities and<br />

events are required to coordinate with the<br />

Compliance Hotline in advance. In addition, each<br />

project manager must participate in a special<br />

compliance training program.<br />

With its data protection guideline, “Data<br />

Protection and Privacy — The <strong>Daimler</strong> Code of<br />

Conduct”, the Group has created a standardized<br />

level of data protection for the entire organization.<br />

<strong>This</strong> guideline, which applies to all personal<br />

data relating to employees, customers and<br />

suppliers, complies with the provisions of the<br />

European Data Protection Directive and other<br />

national regulations. The code defines the<br />

conditions under which data may be compiled,<br />

processed and used, as well as the regulations<br />

that are to be observed when conducting such<br />

activities. Under the direction of the Chief<br />

Corporate Data Protection Officer, a worldwide<br />

network of local data protection coordinators<br />

ensures compliance with the regulations.<br />

Customers’ increasing sensitivity with regard to<br />

this issue is reflected in a growing (but still low)<br />

number of inquiries and complaints. All<br />

complaints are investigated immediately, but only<br />

a few individual cases of actual violation of<br />

privacy have been discovered. All information<br />

gained from such activities is used to optimize<br />

data protection processes.


21 <strong>Daimler</strong> 360 DEGREES – Facts on Sustainability 2008<br />

Product Responsibility<br />

PR9 Core Monetary value of significant fines for noncompliance<br />

with laws and regulations concerning<br />

the provision and use of products and services<br />

Automotive Supplement<br />

A4<br />

A5<br />

A6<br />

A7<br />

A8<br />

A10<br />

Numbers of vehicles sold, broken down <strong>by</strong> type,<br />

fuels, power train technologies, and region. Explain<br />

definition used for different vehicle types.<br />

Breakdown <strong>by</strong> region/country of the compliance of<br />

vehicles sold with the respective existing and next<br />

defined emissions standards.<br />

Average fuel economy <strong>by</strong> type of vehicle* broken<br />

down <strong>by</strong> region, as applicable. Explain definition<br />

used for different vehicle types (apply same<br />

definitions as used in indicator P1).* For manufacturers<br />

of commercial vehicles “type of vehicle”<br />

refers to vehicle segment.<br />

Average carbon dioxide emissions <strong>by</strong> type of<br />

vehicle* broken down <strong>by</strong> region, as applicable.<br />

Explain definition used for different vehicle types<br />

(apply same definitions as used in indicator P1).*<br />

For manufacturers of commercial vehicles “type of<br />

vehicle” refers to vehicle segment.<br />

Breakdown <strong>by</strong> region/country of compliance of<br />

vehicles sold with the respective existing and next<br />

defined noise standard<br />

Weight of vehicle and percentage breakdown of<br />

generic, recyclate, and renewable material of a best<br />

selling vehicle<br />

Global<br />

Compact<br />

Print (page) Web Further information<br />

Degree<br />

33<br />

44<br />

43<br />

43<br />

35<br />

x Fundamental fines and non-monetary sanctions<br />

are disclosed in the Annual Report, if they occur<br />

in a significant amount. (See Annual Report 2007,<br />

p. 179–180.)<br />

x<br />

x<br />

x<br />

x<br />

x<br />

x<br />

–<br />

Proportion of the Mercedes-Benz and smart<br />

diesel passenger cars sold in Europe in 2007 that<br />

satisfy currently valid and future emissions<br />

standards<br />

Fleet fuel consumption in Germany 1990–2007,<br />

<strong>Daimler</strong> CAFE value for passenger cars and light<br />

trucks and vans 1996–2007 in the United States<br />

Average development of CO emissions in<br />

2<br />

<strong>Daimler</strong>’s European fleet 1995–2007<br />

All legal requirements and standards are<br />

complied with.<br />

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