Climate Change Data

Environmental Metrics

ESG Focus Areas

• Eco-friendly drives
• Urban mobility
• Interurban mobility
• Energy chain
• Employee advancement and development
• Occupational health and safety
• Diversity and equal opportunity
• Corporate citizenship
• Environment and climate protection
• Social and ecological standards in the value chain
• Corporate compliance
• Information security
• Customer satisfaction
• Product quality and safety

Environmental Achievements

• Absolute CO₂ emissions decreased by 1.9% compared to the previous year, from 1,045,627 to 1,026,057 tons of CO₂.
• 98.1% of Schaeffler production sites were EMAS certified and 98.8% were ISO 14001 certified.
• Water consumption decreased slightly by 5.0%.
• Schaeffler Brazil achieved Zero Waste to Landfill in its factory.

Social Achievements

• Accident rate reduced to 5.2 (prior year: 6.2), achieving the annual reduction target of 10% for the third year in a row.
• Received 66 awards for customer satisfaction and product quality.
• Launched a program to improve attendance at four pilot locations in Germany.
• Implemented the integrated product safety management system (IPSMS).

Governance Achievements

• Established a Sustainability Committee consisting of members of the Executive Board and selected leaders of the first-level management.
• Established a Diversity Council consisting of members of the Executive Board and senior employees.
• No reportable non-financial risks were identified in 2019.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions.
• Reducing the number of complaints as an important quality indicator.
• Further developing the human rights due diligence process.
• Meeting future emission limits.

Mitigation Strategies

• Initiated projects with the support of external experts to identify, classify, and potentially reduce Scope 3 emissions.
• Launched the “Quality for Tomorrow” initiative.
• Continued to develop the human rights due diligence process and is in contact with the German Federal Foreign Office and the German Federal Ministry of Labor and Social Affairs.
• Developing friction-reducing technologies and optimizing the valve train system to make internal combustion engines as low-emission and energy-efficient as possible.

Supply Chain Management

Supplier Audits: 86 new suppliers reviewed in initial assessments in 2019

Responsible Procurement

• Supplier Code of Conduct (SCoC) based on UN Global Compact and ILO core labor standards.
• Purchasing & Supplier Management Sustainability department created to manage sustainability in the supply chain.
• Suppliers without certified environmental or OHSAS management systems or who do not accept the SCoC/CoC are rated down.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and technologies for e-mobility and renewable energy.

Reporting Standards

Frameworks Used: GRI (Core option), UN Global Compact

Certifications: ISO 14001, EMAS, ISO 50001, OHSAS 18001/ISO 45001, IATF 16949:2016, ISO/TS 22163, SAE AS 9100D:2016-09-20, ISO 9001:2015

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 11
• SDG 12
• SDG 13
• SDG 17
• SDG 3
• SDG 4
• SDG 5

Schaeffler's products and technologies contribute to sustainable cities, energy, production, climate action, economic growth, and health and well-being. The company's commitment to employees and society supports education, gender equality, and partnerships.

Sustainable Products & Innovation

• Electric motors for hybrid and all-electric vehicles
• Direct drives for machine tools
• Components for fuel cells
• Bearings for wind turbines
• Schaeffler Mover
• Bio-Hybrid

Awards & Recognition

• German Mobility Prize (Schaeffler Mover)
• Red Dot Award (Bio-Hybrid)
• NEXUS Automotive International Supplier of the Year
• TEMOT International Supplier of the Year
• GROUPAUTO International Supplier of the Year
• Corporate Health Award (excellence class)

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Renewable energy
• Sustainable supply chain
• Occupational health and safety
• Diversity and equal opportunity
• Responsible corporate governance
• Human rights

Environmental Achievements

• Reduced own greenhouse gas emissions (Scope 1 and 2) by 5.5% to 703 thousand tons of CO2 compared to the prior year.
• 100% of purchased power from renewable sources at all European production sites.
• Cumulative annual energy savings of around 47 gigawatt hours starting in 2022 from energy efficiency measures.
• Agreement with H2greensteel to source 100,000 tons of nearly carbon-free steel annually starting in 2025, reducing CO2 emissions by 200,000 tons annually.

Social Achievements

• Reduced accident rate (LTIR) to 3.9 (prior year: 4.6), a decrease of at least 10% for the fifth consecutive year.
• Established the Schaeffler Foundation to emphasize social responsibility.
• Achieved a CDP climate rating of “A-” and a CDP water rating of “A-”.

Governance Achievements

• Revised and adopted the Code of Conduct, incorporating increasing customer and business partner requirements and reinforcing human rights.
• Improved sustainability ratings and rankings (EcoVadis Platinum status).

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 upstream emissions (supply chain emissions), particularly those related to steel.
• Ensuring responsible procurement of raw materials from conflict and high-risk areas.
• Managing risks associated with the increasing scarcity of global water resources.

Mitigation Strategies

• Collaboration with steel suppliers to improve their climate performance and explore sustainable logistics and packaging.
• Use of the Reasonable Country of Origin Inquiries (RCOI) procedure to ascertain the origin of conflict minerals.
• Joining the Initiative for Responsible Mining Assurance (IRMA).
• Implementing water reduction projects at sites in water-stressed regions.
• Reducing freshwater withdrawal by 20% by 2030 compared to 2019.

Supply Chain Management

Supplier Audits: 133 new suppliers assessed in 2021; additional audits conducted by third parties based on risk analysis.

Responsible Procurement

• Supplier Code of Conduct
• Sustainability self-assessments (SAQs)
• Reasonable Country of Origin Inquiries (RCOI) procedure
• Drive Sustainability initiative
• Critical Raw Materials (CRM) Policy

Climate-Related Risks & Opportunities

Physical Risks

• Data not explicitly provided in report

Transition Risks

• Data not explicitly provided in report

Opportunities

• Development of energy-efficient products and solutions for electric mobility and renewable energy.

Reporting Standards

Frameworks Used: GRI (Core option), UN Global Compact, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, EMAS, IATF 16949:2016, ISO/TS 22163, SAE AS 9100D:2016

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft (Limited assurance)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

The report details how Schaeffler's initiatives contribute to these goals throughout its operations and supply chain.

Sustainable Products & Innovation

• CO2-efficient drives
• Electric axles
• 3-in-1 electric axle
• Free Drive bike-by-wire system
• Low-friction bearings for wind turbines
• Repair solutions for hybrid and 48-volt vehicles

Awards & Recognition

• 75 awards for customer satisfaction and product quality in 2021
• EcoVadis Platinum status
• CDP climate rating of “A-”
• CDP water rating of “A-”

Environmental Metrics

ESG Focus Areas

• Climate neutrality
• Resource efficiency and environmental protection
• Circularity
• Green Products
• Diversity, employees, and people development
• Occupational health and safety
• Responsibility in society and supply chain
• Product safety and integrity
• Corporate governance
• Business integrity

Environmental Achievements

• Reduced production-related CO2e emissions by around 30% compared to the prior year (from 699,000 to 488,000 metric tons)
• Achieved 100% of purchased power from renewable sources at European plants
• Achieved 90.7% of purchasing volume of production material from suppliers with sustainability self-assessments
• Reduced freshwater withdrawal to 5,560 thousand m³ (a 1.0% drop compared to the prior year)
• Eight locations achieved 100% recycling status

Social Achievements

• Reduced accident rate (LTIR) to 2.9 (a 25.6% decrease from the prior year)
• Achieved 15.0% women in top management positions
• Conducted an employee survey to reinforce commitment and identify potential for improvement
• Implemented a global apprenticeship strategy
• Offered 360 web-based training courses globally

Governance Achievements

• Transferred sustainability responsibility to the Chief Executive Officer’s division
• Developed a comprehensive Climate Action Plan
• Implemented a Human Rights Compliance Management System (HRCMS)
• Achieved 100% coverage of production sites in accordance with ISO 45001
• Implemented a Tax Compliance Management System (Tax CMS)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical developments
• Decarbonizing steel production
• Reducing Scope 3 downstream emissions
• Reducing workplace stress
• Managing climate-related risks (physical and transition)
• Ensuring human rights compliance throughout the supply chain

Mitigation Strategies

• Developed a Climate Action Plan with six key elements (strategy, green purchasing, green production, green products, finance & IT, people)
• Agreed to procure 100,000 metric tons of nearly carbon-free steel annually from H2 Green Steel beginning in 2027
• Implemented water saving measures to reduce freshwater withdrawal by 20% by 2030
• Implemented corrective training courses and web-based courses on mental health
• Integrated climate-related risks into the risk management system
• Developed a Human Rights Compliance Management System (HRCMS) and a whistleblowing system

Supply Chain Management

Supplier Audits: Social audits conducted in justified cases based on Responsible Supply Chain Initiative (RSCI) standard.

Responsible Procurement

• Schaeffler Group Supplier Code of Conduct
• Sustainable Procurement Policy
• Drive Sustainability initiative’s standardized survey (SAQ)
• Critical raw materials policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, flooding)
• Water stress in various regions

Transition Risks

• Market shifts (e.g., transition to e-mobility)
• Regulatory changes (e.g., emissions trading systems, CO2 taxes)

Opportunities

• Increased demand for renewable energy components
• Development of energy-efficient products

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, TCFD, UN Guiding Principles for Business and Human Rights, UN Global Compact, ILO core labor standards, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, German Supply Chain Due Diligence Act (LkSG), British Modern Slavery Act

Certifications: ISO 50001, ISO 14001, ISO 45001, IATF 16949:2016, ISO/TS 22163, SAE AS 9100D:2016-09-20, ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 17

The company's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• 4-in-1 electric axle
• High-performance ball bearing with integrated centrifugal disc
• Wheel bearing unit for commercial vehicles
• Enertect PC+ coating for metallic bipolar plates

Awards & Recognition

• 67 awards for customer satisfaction and product quality (2022)