MASHINIi

MTU AERO ENGINES.

MTX.XETRA | Manufacture of air and spacecraft and related machinery

MTU Aero Engines AG is a German aircraft engine manufacturer. It develops, manufactures, markets, and supports commercial and military aircraft engines, industrial gas turbines, and related services. The company's activities encompass the entire lifecycle of aero engines, from design and development...Show More

Ethical Profile

Mixed.

MTU Aero Engines presents a mixed ethical profile. Its military engine business generated €612 million in 2024, a 14% increase, raising concerns for some. In 2015, reports suggest its subsidiary, MTU America Inc., paid a $1.2 million civil penalty for a Clean Air Act violation. However, MTU also highlights significant environmental and social commitments. Its geared turbofan (GTF) engine reportedly reduces noise footprint by 75% and NOₓ emissions by 50%. The company aims for a 60% CO₂ emissions reduction by 2030 at production sites and achieved a 72.7% recycling rate in 2023. Worker respect is strong, with 90.4% of German employees covered by collective agreements and €161 million in social benefits in 2023. While supply chain transparency is an industry challenge, approximately 75% of supplier contracts include ethical clauses. The company also maintains a robust compliance culture and strong IT security.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect30
-100100
Fair Trade & Ethical Sourcing20
-100100
Honest & Fair Business10
-100100
Kind to Animals0
-100100
No War, No Weapons-60
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-10
-100100

Better Health for All

0

MTU Aero Engines AG's core business is manufacturing aircraft engines. The company's documented efforts, such as the Clean Air Engine (Claire) technology and geared turbofan (GTF) engines, focus on reducing noise, emissions, and waste from its products and manufacturing processes

1
,
2
. These initiatives aim to improve air quality and reduce noise, thereby enhancing community health near airports
3
,
4
and addressing public health risks linked to emissions
5
,
6
. However, the 'Better Health for All' value explicitly states that it 'does not cover environmental pollution control, which is part of Planet-Friendly Business.' As the provided evidence primarily relates to environmental pollution control, it falls outside the scope of this ethical value. Consequently, the company's products and services are considered to have no significant positive or negative health impact within the defined scope of this value, and no other health-specific initiatives are evidenced.

Fair Money & Economic Opportunity

0

MTU Aero Engines AG is an aircraft engine manufacturer, not a financial institution.

1
Its core business involves the development, manufacture, and maintenance of aircraft engines.
2
The company does not offer lending, deposit, or other financial services to consumers.
3
Therefore, all KPIs related to 'Fair Money & Economic Opportunity,' which assess financial products, services, and their impact on underserved populations, are not applicable to MTU Aero Engines AG's operations.
4

Fair Pay & Worker Respect

30

MTU Aero Engines had 9 confirmed cases of discrimination or harassment over the past three years (2022-2024), with 6 cases confirmed in 2024.

1
The company's voluntary employee turnover rate was 4.2% in 2024.
2
Worldwide, 73.4% of employees were covered by collective bargaining agreements in 2024.
3
The gender pay gap was 2% in 2024, indicating a pay equity ratio of 0.98.
4
The ratio of the median employee's total annual remuneration to the highest-paid individual's remuneration was 1:41 in 2024.
5
The rate of work-related accidents with lost-time was 3.3 per 1,000 employees in 2024, with no fatalities reported from 2022-2024.
6
The Commitment and Leadership Index from PulseCheck surveys was 77% in 2022.
7
In 2024, 5.21% of the workforce was on temporary contracts.
8

Fair Trade & Ethical Sourcing

20

In 2023, MTU Aero Engines AG's supplier inquiries revealed no indications that its components contained conflict minerals

1
, with suppliers required to source from certified conflict-free smelters and provide annual declarations of compliance
2
. The company's Supplier Code of Conduct, revised in 2023, mandates that suppliers uphold human rights, prohibit forced and child labor, ensure fair wages, and maintain safe working conditions, reserving the right to terminate contracts for non-compliance
3
. No reports of supplier violations regarding human rights were submitted in 2023
4
. MTU conducts annual risk analyses of direct suppliers, focusing on ESG criteria
5
, and appointed human rights coordinators in 2023
6
.

Honest & Fair Business

10

MTU Aero Engines AG operates a global whistleblower system, iTrust, which allows employees and external parties to report suspected misconduct confidentially.

1
In 2023, three substantiated complaints were submitted and appropriately addressed.
2
The company maintains a comprehensive, risk-based compliance organization with a zero-tolerance policy towards unlawful conduct, including corruption, extortion, and fraud.
3
This includes regular employee training on its binding Code of Conduct, which also applies to suppliers and is actively monitored for compliance.
4

Kind to Animals

0

MTU Aero Engines AG, an aircraft engine manufacturer, has minimal direct interaction with animal welfare.

1
The company does not engage in specific animal welfare activities such as cruelty-free certifications or ethical sourcing.
2
Its sustainability efforts focus on reducing environmental impact through improved engine efficiency and eco-friendly manufacturing processes, which may indirectly benefit wildlife.
3
The company does not have animal-derived products, animal testing operations, animal husbandry, or animal agriculture operations, rendering most animal welfare KPIs not applicable.
4

No War, No Weapons

-60

MTU Aero Engines AG's military engine business generated €612 million in revenue in 2024, accounting for 8.2% of its total adjusted revenue of €7.5 billion.

1
This segment saw a 14% increase in 2024
2
and a 21% increase in Q1 2024,
3
indicating substantial growth in military sectors rather than divestment. The company invested €342 million in R&D in 2024,
4
focusing on both commercial engine programs and technological advancements for military projects like the New Generation Fighter Engine, Eurofighter Typhoon, and A400M.
5
There is no evidence of investment in peace technology.

Planet-Friendly Business

0

In 2023, MTU Aero Engines achieved a 72.7% recycling rate.

1
The company has extended its ecoRoadmap to all fully consolidated production and maintenance companies, aiming for a 60% reduction in its CO₂e footprint by 2030 compared to 2019 levels.
2
This strategy includes sustainable energy-saving measures, increased use of green energy, and the commissioning of its first photovoltaic systems at the Munich and Rzeszów sites, as well as the implementation of geothermal energy at its Munich site.
3
MTU's Claire technology agenda, which aims for emissions-free flight, includes the GTF engine, which has reduced CO₂ emissions by up to 20% compared to previous generations, saving 14 million metric tons of CO₂ since its entry into service.
4
The company also acquired electric motor specialist eMoSys to support these initiatives.
5

Respect for Cultures & Communities

0

MTU Aero Engines AG's operations do not directly engage with indigenous rights or cultural heritage preservation, maintaining a neutral impact in these areas.

1
As a result, the company has no formal partnerships with indigenous or local community groups, no specific cultural impact assessment protocol, and FPIC processes are not applicable.
2
There is no specific cultural preservation funding, no cultural site disruptions, and no cultural incident response framework as such incidents are not applicable to its operations.
3

Safe & Smart Tech

0

MTU Aero Engines reported no significant cyberattacks or system failures in 2023.

1
The company has developed an AI strategy, including an AI Center of Excellence to oversee AI use cases and integrate ethical considerations into AI applications.
2
Its IT security management system is based on ISO 27001 standards.
3
MTU provides regular training on data protection to employees and encourages external parties to report potential vulnerabilities or incidents.
4
The company adheres to the EU General Data Protection Regulation (GDPR), ensuring personal data is processed lawfully and transparently, and commits to erasing or blocking personal data once its purpose ceases, unless legally required.
5
No documented incidents of unauthorized data use were reported.

Zero Waste & Sustainable Products

-10

MTU Aero Engines achieved a waste diversion rate of 77.22% in 2024.

1
The company reported that 98.2% of its products and 94.9% of its packaging are recyclable in 2024.
2
Circular design principles are integrated into product development, with engines designed for their entire service life, considering manufacturability, reparability, and recyclability from the design stage to allow for multiple repairs.
3
MTU has implemented over ten waste reduction initiatives, including the use of Dymax SpeedMask to reduce waste and scrap, a 'Smart Repair and Reuse' approach in MRO, recovery and sorting of production chips for reuse, and buying decommissioned engines for component second life.
4
In 2024, 43.4% of total waste was hazardous.
5
53.03% of this hazardous waste recovered.
6
The company reported no waste disposal violations or fines for environmental breaches in 2022.
7

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.