MTU Aero Engines AG

The CEO takes on the role of Chief Sustainability Officer (CSO). Supported by the advice of the Corporate Sustainability Board (CS Board), the CSO is responsible for defining the company's positioning and its sustainability strategy and objectives. This includes evaluating sustainability matters and adapting the company's strategy and business model. In this way, sustainability is integrated into MTU's corporate decision-making processes. At Executive Board level, the CEO/CSO is responsible for all product development. This also includes the technology roadmap and the development of innovative and more sustainable propulsion systems. The CFO is responsible for corporate reporting, including the sustainability statement. The above responsibilities at management level are set out in the rules of procedure of the Executive Board, the allocation of responsibilities and for the operational level in MTU's sustainability reporting governance [...] The CS Board is tasked by the Executive Board and the CSO with the operational implementation of sustainability management, with the CS Board acting as an advisory and (preparatory) decision-making body. It consists of members of the first management level below the Executive Board who hold corporate functions relevant to sustainability. These include purchasing & logistics, corporate quality & environmental sustainability, corporate strategy, human resources, corporate communications & public affairs, compliance, finance, and development & technology. The CS Board is responsible for driving sustainability forward at MTU, controlling CS activities on behalf of the CSO, and adopting CS actions and initiatives. The CS Board supervises sustainability-related policies, targets, action plans, and dedicated resources. It also oversees sustainability reporting and hence the preparation of the annual sustainability statement. The CS Board reports directly to the CSO and regularly to the entire Executive Board as well as the Supervisory Board and its Audit Committee.

## Political dialogue: Centrally coordinated representation of interests

MTU takes no party political position as a matter of principle. We purposely cultivate relationships with parties and factions on certain topics, as aviation is affected to no small degree by political decision-making, especially at the national and European levels. MTU's lobbying activities aim to provide political stakeholders with background information, views, and concerns relating to core business issues, so that these can be taken into account in the political decision-making process.

Our key points of contact include elected representatives and decision-makers from ministries at the state, federal, and EU levels as well as from subordinate authorities and the German Armed Forces. To ensure transparency and adherence to external and internal regulations, MTU's political dialogue is managed centrally by the Group Representation Office of the Corporate Communications department. We pursue our industry-specific interests through memberships in various professional associations. → Overview of our memberships in the GRI index under Organizational profile

We do not make any financial or in-kind donations to political parties. All interactions in the political arena are carried out in compliance with the applicable legal and regulatory requirements and with our Code of Conduct, and must be granted central approval. Donations to political parties or party-affiliated organizations are generally subject to approval by the Supervisory Board. Mandatory requirements are stipulated in our compliance management system and Code of Conduct, including those relating to donations, sponsorship, customer events, in-house events, hospitality, and corporate gifts. Compliance with these rules and regulations is the responsibility of the relevant manager in each case and is ensured by means of an internal monitoring system.

We publish contacts with politicians on an ad hoc basis, e.g. on the occasion of site visits. These days, many politicians themselves also report on visits and contacts. MTU has instituted a self-imposed "quiet period" of six weeks prior to elections, during which visits from or events with elected representatives or candidates are prohibited so as not to offer them a public platform.

Germany's Lobbying Register Act (LobbyRG) stipulates that all organizations and companies that lobby the German parliament and federal government for representation of interests must be registered in the Lobbying Register. We believe that transparency is a prerequisite for trust when it comes to representation for interests and the political process. MTU appears on the Register under entry number R02076. We also follow this approach at the European level and can be found in the European Union's Transparency Register with all relevant information.

We support our employees' right to pursue voluntary or political causes as private citizens. However, our employees are bound by the rules relating to conflict of interest laid out in our Code of Conduct. When it comes to private voluntary or political causes, we in no way pursue MTU's corporate interests. → Donations & sponsorship → Compliance

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Our political engagement activities are aligned with our overall climate strategy through various steps. We are in constant exchange with the responsible colleagues (meetings, jour-fixes, events, trade fairs) in order to align our political messaging with our climate strategy. Further, our political messaging and activities always derive from the needs of MTU, which in turn derive from its overall climate strategy.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes