Group performance environmental dimension

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1 Deutsche Bahn Group 2016 Integrated Report Group performance environmental dimension Progress in climate protection / p. 127 Further measures in noise reduction / p. 129 Recycling rate continues at a high level / p. 131 OUR ASPIRATION As an ECO-PIONEER, we set benchmarks with our products for efficient use of available resources. OUR TARGETS CLIMATE PROTECTION NOISE REDUCTION SPECIFIC CO₂E EMISSIONS (CAR- RIERS) COMPARED TO 2006 (%) TARGET DB QUIET FREIGHT CARS IN GERMANY AS OF DEC 31 7,349 20, ,396 TARGET DB , SHARE OF RENEWABLE ENERGIES IN THE TRACTION CURRENT MIX (%) TARGET DB ) TRACK KILO- METERS NOISE REMEDIATED IN TOTAL (ROUNDED) AS OF DEC 31 (KM) 1,200 1, TARGET DB ,600 3) 2, = 2016 = 100 % means actual figure for 2016 = budget figure for = as of 2016 = as of 2) 100 % means actual value 2016 = plan value Target figure Development DB2020 referring the direction solely to of DB target companies achievement in 2020 is on schedule. 2) (see changes in target system [page 85]). Target DB exclusively related to DB companies (see changes in target system [PAGE 85]). 3) Preliminary figure. OUR AREAS OF ACTION USE OF RENEWABLE ENERGIES We continuously increase the share of eco-power in the traction current mix for climate-friendly rail transport. Ω PAGE 1 28 F. EXPANSION OF GREEN OFFERS We offer our customers climate-friendly travel with 100 % eco-power. Ω PAGE 1 28 F. NOISE REMEDIATION We protect residents against noise by building fixed sound barriers. Ω PAGE 1 29 F. CO₂E REDUCTION We are reducing our worldwide greenhouse gas emissions in order to protect the climate. Ω PAGE F. REFITTING WITH WHISPER BRAKES We are halving the rolling noise made by freight cars by using V brake shoes. Ω PAGE F. RECYCLING We keep the recycling rate at a high level in order to protect resources. Ω PAGE

2 Group performance environmental dimension G4-EN19 DB 06 In our efforts to become a comprehensive ECO-PIONEER, we are focusing on the following areas of action: climate protection, noise reduction and resource efficiency. The topics AIR QUALITY CONTROL [PAGE 276] and NATURE CONSERVATION [PAG E 2 76 F.] as well as other environmental targets are dealt with in the chapter Additional information on sustainability. Progress in climate protection The Climate Protection Treaty agreed in Paris in December was another milestone in the global reduction of greenhouse gas emissions. Even long before the Treaty, the Federal Government decided to cut greenhouse gas emissions by 80 to 95% in Germany by 2050 compared to Through our continuous reduction in greenhouse gas emissions from rail transport in Germany, we are making our contribution to the Federal Government s targets. If rail transport is not in a strong position and traffic is not shifted to environmentally friendly rail, it will not be possible to cut greenhouse gas emissions in the transport sector. As a first step, we intend to maintain the greenhouse gas emissions of our worldwide transport services outside Germany at a stable level, despite a rising volume sold. We aim to do so by in creasing efficiency together with our carriers. New climate protection target includes further greenhouse gases In the year under review, we improved our climate protection target and raised it further. By 2020 we now wish to achieve a reduction of the specific CO₂e emissions of our carriers worldwide by 30% compared to We had already achieved the original target of a 20% reduction last year, six years earlier than planned. Key drivers of the improvement include the steady increase in energy efficiency of our CHALLENGES POSED transport services and ex BY CLIMATE CHANGE pansion of renewable energy sources for rail transport Analyses show that weather-related disruption by vegetation during extreme weather events can lead in Germany. to a high level of damage. We also formulate the We identify bushes and trees that target in a more sophisticated are at risk of falling onto the track. way on the basis of We exceed the statutory duty of care to maintain safety. international requirements. The challenge is to ensure disruption-free We no longer just take the operation while also complying with all the requirements CO₂ emissions into account, relating to nature conservation. but also other emissions that promote a greenhouse effect. For this reason, in future, we will in addition to CO₂ also take those under the Greenhouse Gas (GHG) Protocol relevant and important to us into account: we will include methane and laughing gas (nitrous oxide) into the calculation of the climate protection target, our ecological footprint and the specific emissions. These gases are called CO₂ equivalents (CO₂e), since they are converted into the equivalent value of CO₂. We measure achievement of our climate protection targets on the basis of energy consumption, the corresponding emissions factors and performance data. In the year under review, we further reduced the specific CO₂e emissions of our worldwide transport services compared to 2006, thereby complying with our aspiration in relation to climate protection. With reference to 1990, the basis of our first climate protection program, we have achieved a reduction of more than 62% for our rail transport in Germany. Specific CO₂e emissions (carriers) compared to 2006 [%] The reduction in the year under review is mainly attributable to efficiency improvements in ocean and air transport through the use of modern vehicles. Inclusion of CO₂ equivalents also for specific emissions Greenhouse gases are reported as CO₂e by converting the climate effect of the particular gases such as methane into CO₂. Depending on the energy source, they account for as much as 10% of the CO₂ emissions. As a result, the figures for CO₂e overall are somewhat higher than for pure CO₂ emissions. Specific CO₂ equivalents by journeys and transports of DB Group 2016 Change absolute % 2014 Regional rail passenger transport (g/pkm) thereof in Germany Long-distance rail passenger transport (g/pkm) Bus service (g/pkm) thereof in Germany Rail freight transport (g/tkm) Road freight transport (g/tkm) Air freight (g/tkm) Ocean freight (g/tkm) Well-to-wheel (WTW); scope 1 3; without pre- and onward carriage; rail transport companies are calculated with their own energy mix and/or European country mixes. Change in method from onward. G4-EN18 127

3 Deutsche Bahn Group 2016 Integrated Report G4-EN3 G4-EN5 In all our modes of transport, the specific CO₂e emissions fell slightly in the year under review; in ocean freight the drop was substantial. An exception is European road freight transport, due to a shift to wards smaller parcel sizes and vehicle units. Energy efficiency increased Lower energy consumption helps the climate through a reduction in the emission of greenhouse gases and it cuts the cost of buying en ergy. By reporting primary energy as a reference level, we are also taking into ac count the processes requir ed for providing the energy, such as extraction, pro cess ing and the transport of fuels or the generation of electricity. Specific primary energy Change consumption by DB Group journeys and transports 2016 absolute % 2014 Regional rail passenger transport (MJ/pkm) thereof in Germany Long-distance rail passenger transport (MJ/pkm) Bus service (MJ/pkm) thereof in Germany Rail freight transport (MJ/tkm) Road freight transport (MJ/tkm) Air freight (MJ/tkm) Ocean freight (MJ/tkm) Well-to-wheel (WTW); scope 1 3; without pre- and onward carriage. Change in method from onward. OUR CONTRIBUTION TO THE CLIMATE PROTECTION PLAN 2050 With the Climate Protection Plan 2050, the Federal Government is aiming to reduce greenhouse gas emissions in the transport sector by up to 42 % by 2030 compared to 1990, as a first step. A sys te matic shift to environmentally friendly rail transport could help in this respect. On average, a DB long-distance train emits only one-tenth of the greenhouse gases of a car per passenger kilometer and only one-twentieth of the greenhouse gases of an airplane. In freight transport, DB rail freight transport produces only one-quarter of the greenhouse gas emissions of a truck. In the year under review, the specific primary energy consumption in regional rail passenger transport, bus, air and ocean transport fell further. An exception is road freight trans port due to the changes mentioned above. The re ported increase in long-distance rail passenger transport is a result of our recalibration of the energy consumption measurement device on the ICE 1. Share of renewable energies remains high We had already reached, ahead of schedule, the target of raising the share of renewable energies in the traction current mix to 35% by From 2017 onwards, the target relates solely to the traction current mix of DB companies in Germany. We have raised the new target figure to 45%. The increase up to 2020 will result primarily from the statutory allocation of power quantities under the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz; EEG). Traction current mix [%] Renewable energy Nuclear energy Black coal Lignite Natural gas Other Green offers Data based on findings and estimates available as of February Including purchased energy in the amount of 1,795 GWh for all green DB products with 100 % green electricity (for example S-Bahn (metro) Hamburg, BahnCard, bahn.business as well as Environment Plus and DBeco plus). If a train operating company did not order additional green electricity, the share of its renewable energies in the traction current mix is 27 %. The share of renewable energies in the traction current mix has remained stable at a high level compared to the previous year. DB Long-Distance has been making a substantial contribution to the high eco-power share since April 2013 through its green offers. In the case of customers of BahnCard and route season tickets as well as customers of the bahn.business program, we buy in the eco-power quantities that are needed for these journeys. Long-distance passengers who do not use any of the CO₂-free products can purchase an Environment Plus ticket for 1 surcharge per journey and person, enabling them also to travel CO₂free. In addition, all DB employees have been traveling CO₂free on business trips in Germany since October 2009, and on private trips with DB Long-Distance throughout Germany since April In regional transport, the S-Bahn (metro) Hamburg has been relying 100% on green energy since G4-EN7 G4-EN27 DB

4 Group performance environmental dimension G4-EN27 G4-EN6 G4-EN7 G4-EN6 G4-EN7 DB 06 DBeco plus also provides rail freight transport customers with the option of using transport services CO₂-free with 100% eco-power. Brake energy recovery increases energy efficiency Modern rolling stock can convert a part of its kinetic energy into electrical energy during braking, allowing it to be fed back into the traction current grid. In the year under review we put additional new vehicles with this technology into service, with the result that even more energy could be recycled. Brake energy recovery [GWh] Regional rail passenger transport Share of total electricity procurement (%) Long-distance rail passenger transport Share of total electricity procurement (%) Rail freight transport Share of total electricity procurement (%) Total 1,257 1,219 1,130 Germany, tank-to-wheel (TTW). In the year under review, the recovery rate has increased to 14% (previous year: 13%). Reducing energy needs in stations, facilities and buildings Our stationary facilities, which include more than 5,000 stations and over 2,000 sites worldwide operated by DB Schenker, account for about 8% of DB Group s total energy demand. Here, too, we want to further reduce energy consumption and CO₂ emissions. In our stations we managed to lower absolute primary energy consumption by nearly 17% in comparison to 2010 by the end of The focus of the energy-saving measures were particularly on upgrading the lighting and orientation systems to LED, and on improving the operational performance of our ventilation, cooling and boiler systems. The energy management system of DB Station&Service AG was certified to DIN EN ISO in the year under review. Additional targets were formulated during the certification process. In December 2016, we opened the second CO₂-free station in Lutherstadt Wittenberg. The use of geothermal power, photovoltaics, roof greening, rainwater management and LED lighting enables the station to operate in a carbon-neutral way. The green station in Kerpen-Horrem (North Rhine- Westphalia) has been operational since In the year under review, DB Long-Distance has started to build its first CO₂-NEUTRAL ICE FACILITY [PAG E 4 2 F.]. It will become operational in As in the green stations, photovoltaic systems and geothermal power will help to save several thousand tons of CO₂ per year, compared to conventional technologies. Intelligent lighting control in the workshop and the use of LED lighting in the external facilities guarantee optimum use of energy. In addition, DB Regional has started with the construction of a climate-friendly facility in Munich-Pasing. Through its use of geothermal power, LED lighting and intelligent facilities management, the company meets high ecological standards that also pay off from a business viewpoint. CO₂ emissions will be 80% lower than in conventional systems. DB Schenker s facilities comply with the latest requirements in terms of energy efficiency and environmental protection. An example is the recently opened terminal in the Finnish town of Vaasa, a CO₂-neutral facility, which is powered by geothermal sources and solar energy. Throughout Europe, about 700 subsidiaries of DB Group are required to conduct energy audits by the EU s Energy Efficiency Directive. By, more than 100 companies had already conducted energy audits in Germany alone. By the end of the year under review, 14 companies including DB Energie GmbH, DB Regio AG with the Berlin and Hamburg S-Bahns (metros), DB Fernverkehr AG and DB Station&Service AG, each introduced a comprehensive energy management system (EnMS). These EnMS enable about two-thirds of DB Group s energy consumption in Germany to be re corded. The required certification of the EnMS was successfully completed by external auditors in Further measures in noise reduction In order to noticeably relieve residents near railway tracks, we plan to halve our rail transport noise by 2020, compared to We will achieve this by implementing the noise remediation program and the use of whisper brakes on freight cars. In the year under review, we considerably accelerated the process to refit freight cars with quiet brake shoes. As a result, half of our freight cars now run more quietly in Germany. We are reducing noise by building fixed sound barriers along the tracks as well. G4-EN27 DB

5 Deutsche Bahn Group 2016 Integrated Report Noise remediation and prevention continues Noise remediation and prevention in Germany NOISE REMEDIATION (EXISTING NETWORK) Sound barriers erected (km) Homes with passive measures 1,495 1,853 2,400 Track kilometers noise remediated in total (rounded) 2) as of Dec 31 (km) 1,600 3) 1,500 1,400 NOISE PREVENTION (NEW CONSTRUCTION AND EXPANSION LINES) Sound barriers erected (km) Homes with passive measures as of Dec 31 8,680 12,474 8, rounded. 2) Completed sections of track as per Annex 1 of our overall noise remediation program, cumulated. 3) Preliminary figure. Since 1999, we have been voluntarily implementing the program launched by the Federal Government, Noise remediation of existing rail lines of the Federal Government (Lärmsanierung an bestehenden Schienenwegen des Bundes). On the 3,700-km-long lines identified as particularly affected in Germany, we will build sound barriers and equip apartments with soundproof windows, for example. Of that total, 2,000 km is scheduled to be noise remediated by A list of priorities defines where the highest impacts are and sets out the sequence in which these places will be noise remediated. The Federal Government further in creased the funding for noise remediation in the year under review. It provided 150 million in the Federal budget accounts for noise abatement measures (previous year: 130 million). This amount is not only being used to fund conventional noise remediation measures on the tracks, but also to refit freight cars and to finance special noise protection schemes. In total, about 80.3 million was spent on implementing the Federal Government s voluntary noise remediation program. The progress made in noise remediation of lines corresponds largely with our FORECAST FROM THE INTE- GRATED REPORT [ INTEGRATED REPORT, PAGE 183]. The calling in of funds of 100 million as scheduled for the year under review was not fully implemented. The reasons for this include the length of time taken for the planning permission procedure, delay in the planning process due to complaints by residents against plan approval decisions, tighter requirements in relation to construction noise and greater strain on the availability of check intervals as a result of increasing maintenance and renovation work in the existing network and for ongoing expansion projects. For the period 2016 to 2018, the Federal Government is providing funding totaling about 1 billion through the CAPITAL EXPENDITURE PROGRAM FOR THE FUTURE [ INTE- GRATED REPORT, PAGE 134] for infrastruc ture projects. An amount in the tens of millions of euros is also earmarked for noise abatement measures. In the year under review the relevant finance agreements were signed in order to implement the noise abatement measures in sub sequent years. These include feasibility studies in the Middle Rhine Valley and in the valleys of the Inn and Elbe rivers. In the year under review, the Federal Government de cided to cut the threshold values (3 db(a)) for noise remediation, in addition to discontinuation of railway bonus (5 db(a)). Since January 1, 2016, for example, the nighttime values in residential areas are 57 db(a), and thus were aligned with the level of protection applicable to road traffic. As a result, noise protection must be implemented that is an improvement of 8 db(a) compared to Owing to the changes in the legal framework, the Federal Government s voluntary noise remediation program is being completely revised and will then be published by the BMVI. The sections of track that have already been remediated will also be in cluded in the study. Noise prevention is legally anchored in the 16th Federal Immission Control Act (Bundesimmissionsschutzverordnung). It applies to new construction and expansion projects. As a result, the number of measures depends on the construction projects in the respective year. More quiet freight cars on the rails With the use of so-called composite brake shoes (V brake shoes), which minimize abrasion on the wheel surface, passing freight transport noise can be effectively reduced by about 10 db(a), which corresponds to a 50% reduction to the human ear. For this purpose two different types of V brake shoes are available. We started buying new freight cars equipped with brake shoes of type K back in 2001, while we have been refitting our existing freight cars with type LL brake shoes since Freight cars in operation equipped with V brake shoes in Germany as of Dec New freight cars in total 8,302 8,178 7,758 Refitted freight cars in total 24,094 12,282 6,576 Quiet freight cars in total 32,396 20,460 14,334 The number of new and existing freight cars with this noisereducing technology has increased further. By the end of the year under review, more than 50% of the current fleet operated by DB Cargo in Germany had been fitted with whisper brakes. In the year under review, we refitted quiet brake shoes to almost 12,000 existing freight cars. This progress thus corresponds to our FORECAST FROM THE INTEGRATED REPORT [ INTEGRATED REPORT, PAGE 183]. 130

6 Group performance environmental dimension Whisper brakes significantly reduce rail transport noise. The refitting of freight cars is being supported with financial assistance from the BMVI. In addition, DB Netz AG s NOISE-BASED TRAIN-PATH PRICING SYSTEM (LÄRMABHÄNGIGES TRASSEN PREISSYSTEM; LATPS) [PAG E F.], which was introduced with the timetable change 2012/2013, also supports the refitting. The complete active vehicle fleet of DB Cargo in Germany will be quiet by the end of Test lines set up for new noise control technologies The BMVI launched in cooperation with us the New and application-oriented noise control trials initiative (Initiative Lärmschutz-Erprobung neu und anwendungsorientiert; I-LENA). This initiative, which runs from April 2016 to the end of 2020, will give developers and manufacturers of noise control technologies the chance to test their innovations in practice on DB lines. BMVI is subsidizing these trials with about 6 million. In the year under review, almost 50 suggestions were submitted for innovative measures for protection against noise and vibration Ε. I-LENA focuses on infrastructure measures aimed at reducing noise. The suggestions submitted can be implemented, tested and im proved in real operating conditions on suitable test lines. The portfolio of feasible measures for reducing noise and vibrations is to be extended in this way. Recycling rate continues at a high level The scarcity of resources and increasing prices provides us with considerable challenges. Particularly in construction and in the maintenance of the rail infrastructure, a large quantity of different resources are used, which increases the pressure to act. We are living up to our responsibilities in regard to our entire value-added chain: from purchasing to the operational use to recycling and disposal. We intend to transform our waste management process from an optimized disposal management system into a modern resource management system. This is why our activities are mainly focused on maintaining our recycling rate at a high level of at least 95% until While we achieve a high recycling rate for construction waste, we wish to increase this further for other types of waste, in particular municipal waste, in the coming years. In addition, we plan to increase the use of recycling materials, and extend the service life of our production equipment, including vehicles. In doing so, we are contributing to the increased use of secondary raw materials in society as a whole. We are also protecting natural resources, since the production of recycling materials is better for the environment than sourcing primary raw materials. The modernization of our vehicles significantly reduces material and energy consumption. In the case of the ICE 2 redesign, for example, the saving of materials was about 80% com pared to new purchase. The redesign of the ICE 3 started in the year under review. In local transport, the S-Bahn (metro) systems for the Rhine-Neckar region and Hamburg, among others, are currently being upgraded. Volume of waste according to type of disposal Total waste (thousand t) 12,921 11,814 6,381 Recycling rate (%) Share of thermal recovery (%) Share of disposal (%) Share of hazardous waste in total volume (%) Excluding DB Arriva. The data for 2016 are projections and are based on the information and estimates available as of December Pursuant to the Waste Classification Ordinance, for example waste oil. In the year under review, about 1.1 million t more waste was produced. Scrap earmarked for disposal was in slight decline, while there was about a 10% rise in construction waste. The target for the recycling rate of 95% was again achieved. It was up 0.1 percentage points on the previous year. Through specific measures such as selective dismantling and contractual commitment of sorting and recycling facilities, we would like to maintain the share of recyclable waste at a high level and further reduce the proportion of waste that is destined for incineration. Volume of waste according to type [thousand t] Total waste 12,921 11,814 6,381 thereof construction waste 12,400 11,220 5,782 thereof scrap metal thereof electronic scrap thereof municipal waste thereof paper thereof waste oil thereof other The data for are based on the information and estimates available as of December Rounded; excluding DB Arriva. Includes paint, varnish, sludge and other maintenance-related waste. Data collection was once again improved in all areas. This is shown especially in the increase in quantity seen in municipal waste and other types of waste. Such waste has been produced increasingly in the European section of DB Schenker. Two areas have been major factors in the increase in construction waste. In the case of both the Stuttgart Ulm project (+ 0.7 million t) and at DB Netz AG (+ 0.5 million t), construction waste rose compared to the previous year, with the recycling rate remaining at the same high level. 131

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