ZF Commercial Vehicle Control Systems India Limited
Climate Impact & Sustainability Data (2014, 2016, 2017, 2019, 2020, 2021, 2022, 2023-04 to 2024-03)
Reporting Period: 2014
Environmental Metrics
ESG Focus Areas
- Product safety
- Environmental impacts of products
- Water use in production
- Environmental impact of transports
- Diversity & equal opportunities
- Biodiversity at the locations
- Human Rights
- Compliance
- Environmental impacts in the supply chain
- Employer attractiveness
- CO2 emissions in production
- Occupational health and safety
- Pollutant emissions in production
- Energy efficiency in production
- Waste & recycling
Environmental Achievements
- Reduced specific energy consumption by approximately 12 percent from 147.0 to 129.5 MWh per EUR million of sales in 2014.
- Increased energy efficiency in Germany by some ten percent in 2014.
- Installation of a second gas-powered combined heat and power plant at the Friedrichshafen location.
- Savings of around EUR 550,000 in material and production costs per year due to elimination of phosphating of angle joints at the Dielingen location.
- Savings of 61,000 cubic meters of water per year at the São Bernardo location (Brazil) through process wastewater treatment and reuse.
Social Achievements
- Construction of a company children's daycare center in Friedrichshafen (approx. 60 places).
- Improved employer ranking (e.g., trendence Graduate Barometer).
- Increased number of applications for trainee program abroad.
- More than 25 percent increase in job applications in Germany compared to the previous year.
Governance Achievements
- Revised Code of Conduct in 2014.
- Revised Compliance Directive in the second half of 2014.
- Implementation of a case management system for compliance actions.
- Introduction of ZF Trustline, an anonymous reporting system for suspected misconduct.
Climate Goals & Targets
- Not disclosed
- Increase the share of renewable energies.
- Roll out systematic energy management system at all European production locations by 2015.
- Reduce CO2 emissions from production by 20 percent by 2020.
Environmental Challenges
- Increasing operating costs due to stricter legislation regarding greenhouse gas emissions.
- Risks of losses at locations and in the supply chain due to increasing extreme weather situations and natural disasters.
- Water scarcity at locations in Brazil and Mexico.
- Risks to supply security from long international supply chains.
- Possible increase in fuel or energy taxes resulting in increased logistics costs and decreased demand.
Mitigation Strategies
- Continuous reduction of emissions (target: 20 percent reduction by 2020).
- Development of a concept for seamless location protection against high water in Passau.
- Launching projects to assess environmental risks in certain regions.
- Localizing sources to reduce transport costs and CO2 emissions.
- Innovations in hybrid technology, e-mobility, and lightweight design.
Supply Chain Management
Supplier Audits: 1300 audits conducted in 2014
Responsible Procurement
- Business Partner Code (2014)
- Supplier self-assessments and audits
- ZF Supplier Academy
Climate-Related Risks & Opportunities
Physical Risks
- High water and flooding
- Extreme drought
Transition Risks
- Stricter legislation
- Increased operating costs
- Possible increase in fuel or energy taxes
Opportunities
- Development of energy-efficient products
- New sales opportunities from strong products
Reporting Standards
Frameworks Used: GRI G4
Certifications: ISO 14001 (95% of production locations), ISO 50001 (all German locations)
Third-party Assurance: Not disclosed
Sustainable Products & Innovation
- 8-speed automatic transmission (8HP)
- Plug-in hybrid transmission
- Get2 rail drive concept
- TraXon modular automatic transmission system
- AVE 130 electric portal axle
- Lightweight components made out of fiber-reinforced plastics
Awards & Recognition
- International busplaner Sustainability Prize 2015 (AVE 130 electric portal axle)
- Third prize in the Office and Environment competition of the B.A.U.M.
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- Product safety
- Environmental impacts of products
- Water use in production
- Environmental impact of transports
- Diversity & equal opportunities
- Biodiversity at the locations
- Human Rights
- Compliance
- Environmental impacts in the supply chain
- Employer attractiveness
- CO2 emissions in production
- Occupational health and safety
- Pollutant emissions in production
- Energy efficiency in production
- Waste & recycling
Environmental Achievements
- 36 percent reduction in specific CO2 emissions compared to the 2006-2010 average by the end of 2016 (ZF only)
- Specific CO2 emissions reduced by 2 percent compared to the previous year (ZF only)
- Specific energy consumption reduced by 3 percent compared to the previous year (ZF only)
- Specific water consumption reduced by 8 percent compared to the previous year (ZF only)
- Specific wastewater consumption reduced by 10 percent compared to the previous year (ZF only)
- Specific waste generation reduced by 6 percent compared to the previous year (ZF only)
- Reduction of airfreight amount from 12.9 percent to 5.27 percent compared to the previous year (ZF only)
Social Achievements
- Increase in the proportion of women from 6.3 percent to 8.4 percent at the first managerial level below the Board of Management
- Increase in the proportion of women from 6.1 percent to 8.1 percent at the second managerial level
- Implementation of a mentoring program for women in leadership functions
- Global accident rate was reduced from 12.1 (2015) to 11.5 (reduction of 5 percent) (ZF only)
- Accident rate was reduced from 2.45 (2015) to 2.4, resulting in 68 lost days per one million working hours (reduction of 12.1 percent) (ZF TRW only)
- New program launched at Gray Court (South Carolina, USA) for extended internationalization of apprenticeships
- Dual education center in Trnava (Slovakia) officially opened
Governance Achievements
- Implementation of the ZF Management System
- Harmonization of ZF and ZF TRW sourcing decision boards
- Implementation of a harmonized, more performance-oriented Short-Term Incentive (STI) program for managers
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Increase the proportion of women in executive management positions by 2017
- Reduce the global accident rate to less than 5 work-related accidents per one million working hours by 2025 (ZF only)
Environmental Challenges
- Global megatrends such as globalization, demographic change, e-mobility, urbanization, resource scarcity, and climate change
- Aging workforce in Germany
- Water scarcity at some production locations
- Risks associated with climate change (extreme weather, water scarcity)
- Supply chain disruptions
- Increasingly strict legislation and regulations
- Integration of ZF TRW
Mitigation Strategies
- ZF 2025 strategy
- Focus on efficiency, advanced driver assistance systems, autonomous driving, and integrated safety
- Implementation of preventive measures against extreme weather and natural disasters
- Localization of sources to reduce transport costs and CO2 emissions
- Development of alternative sourcing strategies
- Environmental management system and sustainability program
- Harmonization of targets, management approaches, and key figures for ZF and ZF TRW
Supply Chain Management
Supplier Audits: 660 audits conducted at existing volume production suppliers (ZF only)
Responsible Procurement
- Business Partner Principles (BPP)
- Supplier self-assessments
- Supplier audits
- Conflict minerals reporting
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (flooding, drought)
Transition Risks
- Increasingly strict legislation and regulations
- Shift towards electric vehicles
Opportunities
- Development of energy-efficient products
- Growth in the e-mobility market
Reporting Standards
Frameworks Used: GRI G4
Certifications: ISO 14001 (environmental management system)
Third-party Assurance: Not disclosed
Sustainable Products & Innovation
- 8-speed plug-in hybrid transmission
- TraXon Hybrid Drive
- Electric central drive CeTrax
- AVE 130 electric portal axle
Awards & Recognition
- Developing & Innovation Award: BEST CSR SAMPLE (ZF TRW's Child Road Safety Campaign)
Reporting Period: 2017
Environmental Metrics
ESG Focus Areas
- Economic performance
- Market presence
- Indirect economic impacts
- Procurement
- Anti-corruption
- Materials
- Energy
- Water
- Emissions
- Effluents and waste
- Environmental compliance
- Supplier environmental assessment
- Employment
- Labor/Management relations
- Occupational health and safety
- Training and education
- Diversity and equal opportunity
- Non-discrimination
- Supplier social assessment
- Customer health and safety
Environmental Achievements
- Reduced specific CO2 emissions by 32 percent compared to the average of the years 2006 to 2010
- Reduced specific energy consumption in relation to sales by 3 percent compared to the previous year
- Implemented more than 110 projects to reduce energy consumption and increase energy efficiency (excluding Active & Passive Safety Technology Division)
- Installed solar power plants at Pune (India) and Johannesburg (South Africa), leading to an expected total emission reduction of 480 tons annually
- Bielefeld (Germany) location purchased 50% renewable electricity in 2017, 100% in 2018
- Seven locations purchased electricity from renewables or with reduced CO2 emissions, leading to a total reduction of approximately 60,000 tons of CO2
Social Achievements
- Increased the proportion of women in leadership positions in the Group from 11.7 to 11.9 percent
- Met targets for increasing the proportion of women at the first and second managerial levels below the Board of Management
- Reduced the global accident rate to 5.5 work-related accidents resulting in one or more lost work days per one million working hours (15.4% reduction compared to the previous year)
- Implemented the Safety Excellence program, focusing on Safety Leadership, Employee Involvement, and Continuous Improvement of Functional EHS Programs
- Launched the “What’s next?” HR image campaign, winning first prize in the trendence Employer Branding Awards
Governance Achievements
- Implemented the ZF Compliance Management System (CMS) to ensure compliance with internal and external regulations
- Established the ComplianceHelpdesk to address compliance-related questions
- Implemented a case management system connected to the ZF Trustline for reporting suspected misconduct
- Developed an internal risk analysis process for compliance risks, focusing on antitrust and corruption
- Implemented Business Partner Principles (BPP) requiring all suppliers to commit to respecting national and international laws and regulations
Climate Goals & Targets
- Vision Zero: Zero accidents. Zero emissions.
- Not disclosed
- Not disclosed
Environmental Challenges
- Integration of TRW Automotive's data and processes
- Increasingly strict legislation and tougher regulations for plant approvals and operations
- Potential risks from extreme weather situations caused by climate change
- Reliable supply chains in light of climate change
- Possible increase in fuel or energy prices
- Varying opportunities and risks for the wind power sector
- Higher organizational costs due to expanded requirements for statutory and regulatory reporting
Mitigation Strategies
- Implementing a “best of both” approach to integrate TRW's sustainability activities
- Implementing early precautions against extreme weather and natural disasters
- Localizing sources to reduce transport costs and CO2 emissions
- Developing robust methods for determining emission values and environmental impacts of products and materials
- Innovations in hybrid technology, e-mobility, and lightweight design
- Environmental management system and sustainability program with corresponding environmental targets
Supply Chain Management
Supplier Audits: 100% of new suppliers underwent self-assessment according to sustainability criteria
Responsible Procurement
- Advanced Procurement Strategy (APS 25) based on ZF Environmental Policy, ZF Principles of Social Responsibility, and UN Global Compact principles
- Business Partner Principles (BPP) for all suppliers
- Supplier Self-Assessment Sustainability template based on BPP
- Adapted version of the Self-Assessment Questionnaire on CSR and Sustainability developed by the European Automotive Working Group on Supply Chain Sustainability
- Conflict mineral disclosure requirement for relevant suppliers
Climate-Related Risks & Opportunities
Physical Risks
- High water and flooding
- Extreme drought
Transition Risks
- Increasingly strict legislation
- Changes in market demand due to electrification
Opportunities
- Development of electric, electronic, and mechatronic competence
- Development of energy-efficient products
- New sales opportunities from competitive products
Reporting Standards
Frameworks Used: GRI Standards (2016) - Core option
Certifications: ISO 14001 (230 locations)
Sustainable Products & Innovation
- Vision Zero Vehicle (electric axle drive system, Driver Distraction Assist, Wrong-way Inhibitor)
- mSTARS modular rear axle system (compatible with hybrid, fuel cell, and electric drives)
- ZF-EcoLife city bus with engine stop/start function
- Electric drive systems for Zero Emission tractors
Awards & Recognition
- Mercedes-Benz Award (São Bernardo do Campo location for eliminating phosphating process)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Economic Performance
- Environment
- Social
Environmental Achievements
- Reduced CO₂ emissions by -2.6% or 42,000 tons compared to the previous year.
- Reduced energy consumption by 118 GWh (-2.9%), with 78 GWh (-1.9%) from energy efficiency projects.
- Increased renewable energy share to 10% of purchased electricity (from 8.3%).
- Achieved target on reduction of water consumption relative to sales.
- Achieved target on reduction of waste for disposal relative to sales.
Social Achievements
- Achieved a turnover rate of 10.1%, lower than the 12% target.
- Reduced the Group accident rate (LTAR) by 15% (4.5 > 3.8%).
- Added 23 sites to the Behavior Based Safety program.
- Conducted 307 Safety Leadership workshops.
Governance Achievements
- Harmonization of all compliance-relevant policies within the entire Group is progressing.
- Added “Human Rights” as a category to the ZF Trustline.
Climate Goals & Targets
- Become climate-neutral from Scope 1 to Scope 3 no later than 2040.
- Halve production-related emissions by 2030 compared to 2018.
- Become climate-neutral from Scope 1 to Scope 3 no later than 2040.
- Reduce CO₂ emissions by 10% relative to sales by 2020 (based on 2017 performance).
- Reduce energy consumption by 10% relative to sales by 2020 (based on 2017 performance).
Environmental Challenges
- Decreasing sales (-1.1%).
- Potential risks from extreme weather events.
- Supply chain disruptions.
- Majority of emissions generated during the utilization phase of products.
- Uncertainty regarding legally binding implementation of national climate protection plans.
Mitigation Strategies
- Investing in R&D (7.3% of Group sales).
- Localizing sources to reduce transport costs and CO₂ emissions.
- Carbon footprinting selected components and supply material.
- Developing products that contribute to cutting vehicle emissions.
- Preparing for more stringent requirements by expanding emissions trading.
Supply Chain Management
Supplier Audits: 100% CSR Assessments for new suppliers; pilot project with 800 strategic suppliers in Q3 2019.
Responsible Procurement
- ZF Business Partner Principles (BPP)
- Self-assessment on sustainability for new suppliers
- Adapted version of the Self-Assessment Questionnaire on CSR and Sustainability developed by Drive Sustainability
- Supplier portal for strategic and accepted suppliers
- Local for local principle
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (high water, flooding, extreme drought)
Transition Risks
- Regulatory changes
- Market shifts (e.g., move away from combustion engines)
Opportunities
- Development of energy-efficient products (e.g., electric drives, hybrid technology, lightweight design)
Reporting Standards
Frameworks Used: GRI Standards: Core option, UN Global Compact
Certifications: ISO 14001, ISO 50001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 4 (Quality Education)
- 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)
ZF's sustainability program contributes to these SDGs through various initiatives, including employee training, responsible procurement, emissions reduction, and community investment.
Sustainable Products & Innovation
- AxTrax AVE electric portal axle
- ZF EVplus concept vehicle
- ZF Marine “hybrid ready” transmissions
- CeTrax electric drive
Awards & Recognition
- 2019 EBUS Award for AxTrax AVE electric portal axle
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Climate Change
- Human Rights
- Supply Chain Sustainability
- Diversity & Inclusion
- Product Safety
Environmental Achievements
- Reduced Scope 1 and Scope 2 carbon emissions; Installed four photovoltaic power plants at various locations.
- Reduced energy consumption by 6 percent; Implemented 412 energy efficiency projects resulting in savings of more than 39 GWh.
- Reduced absolute water withdrawal by 12.1 percent; Increased water recycled/reused by significant amount.
Social Achievements
- Launched several initiatives to contribute to a global and innovative leadership and learning culture; Reduced employee turnover from above 12% to below 8% in 2020.
- Received the “2020 Excellence in Diversity & Inclusion Award” in China.
- Implemented a new initiative to reduce the highest carbon emitting supplies and suppliers within the product life cycle.
Governance Achievements
- Further developed ZF Enterprise Risk Management; Implemented an integrated governance, risk management and compliance (GRC) approach.
- Introduced a sustainability criterion as a mandatory requirement for the approval of new suppliers and for ongoing sourcing.
- Implemented the ZF Trustline, an electronic notification system for reporting suspected serious misconduct.
Climate Goals & Targets
- Achieve climate neutrality by 2040.
- Reduce Scope 1 and Scope 2 carbon footprint by 80% by 2030 (compared to 2018).
- Achieve 100% renewable energy for total ZF power consumption by 2030.
- Increase share of women in leadership positions to 20%.
- Reduce energy consumption by 2% annually relative to value add by 2025 (compared to 2019).
- Reduce water consumption by 2% annually relative to value add by 2025 at locations in water-scarce areas (compared to 2019).
- Reduce water consumption by 1% annually relative to value add by 2025 at other locations (compared to 2019).
- Reduce waste for disposal by 1% annually relative to value add by 2025 (compared to 2019).
Environmental Challenges
- Meeting ambitious climate neutrality goals by 2040, including Scope 3 emissions.
- Managing risks and opportunities related to climate change (physical and transition risks).
- Ensuring sustainability standards throughout the supply chain.
- Addressing water scarcity at certain locations.
Mitigation Strategies
- Developed an ambitious climate strategy with interim targets; Focused on energy efficiency and green energy.
- Implemented a decarbonization roadmap; Initiated decarbonization dialogues with key suppliers.
- Introduced a sustainability criterion for supplier approval and sourcing; Conducted supplier risk assessments.
- Implemented water-saving measures at locations in water-stressed areas; Focused on water reuse and conservation.
Supply Chain Management
Responsible Procurement
- Advanced Procurement Strategy (APS 25); Sustainability criterion for supplier approval; ZF Business Partner Principles; Supplier Academy.
Climate-Related Risks & Opportunities
Physical Risks
- Water scarcity
Transition Risks
- Regulatory changes; Market shifts towards electric vehicles.
Opportunities
- Development of energy-efficient products; Expansion of renewable energy generation.
Reporting Standards
Frameworks Used: GRI Standards: Core option
Certifications: ISO 14001:2015 (216 certificates)
Sustainable Products & Innovation
- Electric powertrain solutions; Lightweight suspension systems; Remanufactured parts.
Awards & Recognition
- 2020 Excellence in Diversity & Inclusion Award (China)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate and nature
- People
- Lasting values
Environmental Achievements
- Reduced CO2 emissions from ZF locations by 29.54% relative to the 2019 base year.
- Increased share of renewable energy in electricity consumption to 14% in 2021 from 10% in 2019.
- Reduced energy consumption per Million Euro value added by 20.83% relative to the 2019 base year.
Social Achievements
- Launched a new campaign to identify top suppliers causing the largest amounts of greenhouse gases.
- Introduced sustainability criteria as a mandatory requirement for the approval of new suppliers and for ongoing sourcing.
- Launched the ZF Decarbonization Dialogues and started a training initiative for employees and suppliers.
Governance Achievements
- Established board-level oversight of climate-related issues.
- Integrated climate-related topics into the Strategic Planning Process.
- From 2023 onwards, achievement of CO2 reduction targets will be part of the long-term incentive system for all global ZF managers.
Climate Goals & Targets
- Net zero emissions by 2040
- Achieve 100% renewable energy by 2030
- Reduce CO2 emissions from ZF locations by 80% compared to 2019 by 2030
- Reduce Scope 3 GHG emissions by 40% per million euro sales by 2030
- Reduce water consumption by 10% by 2025
Environmental Challenges
- Decreased revenues due to potentially affected supply chains or reduced production capacity from acute physical risks (cyclones, droughts, floods).
- Increased direct costs due to increased cost of raw materials.
- Decreased revenues due to reduced demand for products and services from changing customer behavior (passenger and commercial vehicles).
Mitigation Strategies
- Analyzing climate-related risks in the TCFD project and addressing them in the EHS Management System.
- Setting up a structured raw material hedging program.
- Transitioning to electrical drives and no longer developing driveline components for pure combustion engine vehicles.
Supply Chain Management
Supplier Audits: 2000 suppliers (90% of procurement volume)
Responsible Procurement
- Sustainability criteria for suppliers
- ZF Business Partner Principles
- Product Carbon Footprint (PCF) requirements
Climate-Related Risks & Opportunities
Physical Risks
- Flooding events
- Tropical cyclones
- Droughts
Transition Risks
- Increased cost of raw materials
- Changing customer behavior
- Regulatory changes
Opportunities
- Development and expansion of low-emission goods and services
- Increased demand for low-emission products
- Increased access to capital through green finance
Reporting Standards
Frameworks Used: TCFD, GRI, Greenhouse Gas Protocol
Certifications: ISO 14001, ISO 50001, ISO 18001
Third-party Assurance: proTerra Umweltschutz und Managementberatung GmbH (Scope 1, limited assurance); EPEA GmbH (Cradle to Cradle Certified Products)
Sustainable Products & Innovation
- Modular eDrive Kit
- Get2 rail drive concept
- TraXon modular automatic transmission system
- ZF AVE 130 electric portal axle
- Remanufactured products
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Sustainability
- Digitalization
Environmental Achievements
- Reduced energy consumption by more than 121 GWh, avoiding approximately 46,600 tons of CO2e emissions through 800 energy efficiency projects.
- Increased renewable energy share to 23% of total electricity consumption.
Social Achievements
- Launched ZF Excellence Award, category Sustainability, recognizing employee initiatives contributing to climate and sustainability.
- Implemented a Sustainability Criterion for suppliers, covering climate, human rights, compliance, and health & safety.
Governance Achievements
- Linked reduction of Scope 1 and Scope 2 emissions to long-term incentives for the Board of Management and senior management.
- Established a Sustainability Ambition Committee and a Sustainability Council to drive climate strategy implementation.
Climate Goals & Targets
- Achieve net-zero emissions across all three scopes by 2040.
- Reduce absolute Scope 1 and Scope 2 GHG emissions by 80% by 2030 (from 2019 baseline).
- Reduce Scope 3 GHG emissions by 40% per million euro sales by 2030 (from 2019 baseline).
- Increase energy efficiency of ZF locations by 20% compared to 2019 by 2030.
- Achieve 100% renewable electricity by 2030.
- Increase Green Electricity Spend Coverage with ZF's direct suppliers for Production Material to 100% by 2025.
Environmental Challenges
- Acute physical risks from extreme weather events (floods, hurricanes) impacting production capacity and causing asset damage.
- Market risks from changing customer behavior and declining demand for ICE vehicles in the passenger car and commercial vehicle sectors.
- Supply chain disruptions due to climate events and increasing customer reporting requirements of non-financial data.
Mitigation Strategies
- Implemented science-based targets approved by SBTi to reduce emissions.
- Investing significantly in R&D for electrified powertrains and low-carbon technologies.
- Engaging with suppliers to improve supply chain sustainability through initiatives like the ZF Supplier Academy and the Green Materials program.
- Developing alternative sourcing strategies and implementing a comprehensive scenario analysis aligned with TCFD recommendations.
Supply Chain Management
Supplier Audits: 82% coverage of production material suppliers via SAQ in 2022
Responsible Procurement
- ZF Business Partner Principles (BPP)
- Sustainability Criterion
- Product Carbon Footprint (PCF) disclosure
- Green Electricity (GE) requirements
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
- Hurricanes
- Extreme weather events
Transition Risks
- Declining demand for ICE vehicles
- Increased costs of raw materials due to carbon pricing
- Changing customer behavior
Opportunities
- Increased demand for low-emission products and services (e.g., wind turbine gearboxes, electrified powertrains)
- Cost savings from energy efficiency improvements
- Access to green finance instruments
Reporting Standards
Frameworks Used: GRI, TCFD, UNGC, SBTi
Certifications: ISO 14001, ISO 50001
Third-party Assurance: proTerra Umweltschutz und Managementberatung GmbH (limited assurance for Scope 1, partial for Scope 2)
UN Sustainable Development Goals
- SDG 7 (Affordable and Clean Energy)
- SDG 9 (Industry, Innovation and Infrastructure)
- SDG 13 (Climate Action)
ZF's initiatives contribute to these SDGs through investments in renewable energy, sustainable products, and supply chain sustainability.
Sustainable Products & Innovation
- Wind turbine gearboxes
- Electrified powertrains
- Green steel sourcing
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
ESG Focus Areas
- Climate change
- Diversity & Inclusion
- Governance
- Employee well-being
- Community development
- Responsible sourcing
- Waste management
- Energy management
- Water stewardship
Environmental Achievements
- Increased renewable energy usage from 14% to 45% of total energy used, resulting in a ~50% reduction in Scope 1 and Scope 2 emissions.
- Conserved energy by 15.2% in FY24.
- Reduced Scope 1 and Scope 2 GHG emission by 50% compared to previous financial year.
- Reduced water consumption by 5% due to eco-nozzle usage.
- 13% increase in recycling due to waste segregation at source.
- 95% increase in reusable pallets for OE customers.
- 3 tons of hazardous waste avoided due to process optimization.
Social Achievements
- Launched various awareness programs such as Sustainability Walk, Environmental Month, Sustainability Digital Signature campaign, ZF Supply Chain Partners Sustainability Meet.
- Gender diversity ratio for permanent employees and workers stands at 14% (women).
- Aim to increase gender ratio to 30% across all manufacturing facilities by 2026.
- Successfully completed union settlements across all five manufacturing plants in India.
- Employee Engagement Index of 79%.
Governance Achievements
- No instances of corruption or bribery during the reporting period.
- Implemented a whistleblower mechanism.
- Stringent processes in place to avoid/manage conflict of interest.
Climate Goals & Targets
- Achieve climate neutrality by 2040.
- Achieve 100% renewable energy by 2030.
- Reduce CO2 emissions by 80% (compared to 2019) by using green energy until 2030 (Scope 1 and 2).
- Reduce CO2 emissions of upstream value chain & product use until 2040 (Scope 3).
- Reduce water consumption by 2% from current consumption.
- Reduce waste by 5% year on year.
- Reduce Scope 1 & Scope 2 emissions by 90% before 2027.
Environmental Challenges
- Market volatility and global challenges and uncertainties.
- Supply chain disruptions.
- Water consumption.
- Waste management.
- Workforce unrest.
- Climate change vulnerability.
Mitigation Strategies
- Robust risk management strategies.
- Identifying, monitoring, and logging water consumption; implementing strategies to reduce consumption.
- Implementing efficient waste management systems, including recycling and reuse.
- Periodic meetings between union members and site leaders; monthly HR reviews.
- Risk Management Committee to review and control risks.
- Energy efficiency programs and scaling up renewable energy use.
Supply Chain Management
Responsible Procurement
- Business Partner Principles
- Sustainability knockout criteria
- Decarbonisation
- Sustainability training and awareness
- Reuse of packaging
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products
- Opportunities in clean technology
Reporting Standards
Frameworks Used: GRI Standards 2021,
Certifications: ISO 14001, ISO 45001, ISO 50001
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 9 (Industry, innovation, and infrastructure)
- Goal 11 (Sustainable cities and communities)
- Goal 12 (Responsible consumption and production)
- Goal 13 (Climate action)
Initiatives contribute to these goals through renewable energy adoption, waste reduction, community development, and emissions reduction.
Sustainable Products & Innovation
- E-Compressor
- Ecotronic Mid 9S AMT
Awards & Recognition
- Numerous customer awards
- TPM Excellence Award
- Future Ready Factory Award
- Export Excellence Award
- ZF DNA of Quality Award
- IMEXL Distinguished Prize
- CII National EHS circle competition
- Responsible Manufacturer Gold Award for ESG
- Asoka Award
- Sustainability Excellence Award from Tata Motors
- Green Channel Supplier from Ashok Leyland Defense