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Integrating sustainable action

Sustainability has been a firmly established concept within the TRATON GROUP brands for over ten years, and there are continuous and systematic efforts to drive the issue forward. Since the Group’s organization is decentralized, the brands set their priorities, resources, and methods individually in line with their own corporate culture and strategy.

Sustainability management

The Sustainability function of our Group reports to the CEO and is responsible for sustainability management at TRATON. Its main tasks involve developing the Company’s sustainability strategy and initiating sustainability programs. Additionally, the Group function has the task of coordinating the sustainability efforts between the brands, the TRATON Executive Board, and the TRATON Sustainability Board.

The TRATON Sustainability Board — headed by the Groups CEO Christian Levin and comprising the Group functions of Compliance, Finance, Human Resources, Investor Relations, Strategy, Sustainability, and the brands’ sustainability officers — discusses and prioritizes Group-wide programs and strategic initiatives. The TRATON Sustainability Board is also used as a platform for knowledge transfer within the Group. Highlighting the importance of the topic, all Sustainability Board meetings were attend by 94% of the members in 2021.

New programs and measures receive their final approval from the TRATON Executive Board and at the level of the brand, which is solely responsible for their implementation.

Supply chain: focus on human rights

TRATON also wants to uphold its commitment to sustainable action outside of its company walls. We respect, protect, and promote regulations safeguarding human and children’s rights that are applicable worldwide as fundamental and universally valid guidelines. We reject any use of child, forced, or compulsory labor and any form of modern slavery and human trafficking. It goes without saying that this not only applies to cooperation within our Company, but also to the conduct of and toward business partners. Our commitment to this topic is further underscored by our Modern Slavery and Human Trafficking Statement.

In order to strengthen sustainability requirements in supplier relationships and address the topic of human rights in addition to ecological aspects, our brands have firmly established their own approaches. A central tool in this area is the sustainability rating (S rating) system, which is used at MAN and Scania. It is used to check suppliers’ sustainability performance and to identify opportunities for continuous improvement. By tying sustainability performance directly to contract award eligibility, together with the Volkswagen Group we are aiming to send out a signal to our suppliers and partners to encourage collaboration so as to allow sustainability aspects to permeate the supply chain. The primary objective is not to exclude suppliers from the supply chain, but rather to empower suppliers whose performance is not yet satisfactory to achieve the rating.

Ratings & rankings

Sustainability ratings provide an independent analysis and an outside-in perspective, thus helping companies to view their own sustainability performance against their peer group. They serve as proof that a company has incorporated the concept of sustainability and also act as the basis for decisions made by customers and investors. Renowned environmental agency ISS ESG has rewarded TRATON with “Prime” status and a “C+” rating (on a scale of A+ to D–) for its sustainable value creation efforts in the machinery sector (as of July 25, 2021).

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In October 2021, TRATON received an ESG Risk Rating of 25.3 and was assessed by Sustainalytics to be at medium risk of experiencing material financial impacts from ESG factors. TRATON’s ESG Risk Rating places it 13th in the machinery industry assessed by Sustainalytics.

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