Climate Change Data

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

Total Carbon Emissions:771.0 tCO2e (2014)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1702.7 GWh (2014)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

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

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase the share of renewable energies.
  • Roll out systematic energy management system at all European production locations by 2015.
Short-term Goals:
  • 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

Total Carbon Emissions:1,570 thousand tons CO2 (ZF and ZF TRW combined)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:4,107 GWh (ZF and ZF TRW combined)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

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

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • 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

Total Carbon Emissions:1646 thousand tons (Scope 1+2)
Scope 1 Emissions:253 thousand tons
Scope 2 Emissions:1393 thousand tons
Renewable Energy Share:12% of electricity consumption (due to special purchasing contracts or on-site production)
Total Energy Consumption:4155 GWh
Water Consumption:8940 million cubic meters
Waste Generated:652088 tons
Carbon Intensity:40 tons of CO2 per € million in sales (Scope 1+2)

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

Long-term Goals:
  • Vision Zero: Zero accidents. Zero emissions.
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • 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

Total Carbon Emissions:1,585,000 tCO2e/year
Scope 1 Emissions:262,000 tCO2e/year
Scope 2 Emissions:1,323,000 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:10%
Total Energy Consumption:4,032 GWh/year
Water Consumption:10,248 million m3/year
Waste Generated:603,667 tons/year
Carbon Intensity:33.2 tons CO2e per € million sales volume

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

Long-term Goals:
  • Become climate-neutral from Scope 1 to Scope 3 no later than 2040.
Medium-term Goals:
  • Halve production-related emissions by 2030 compared to 2018.
  • Become climate-neutral from Scope 1 to Scope 3 no later than 2040.
Short-term Goals:
  • 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

Total Carbon Emissions:1,395,000 tCO2e
Scope 1 Emissions:257,000 tCO2e
Scope 2 Emissions:1,138,000 tCO2e
Renewable Energy Share:6% of total purchased electricity
Total Energy Consumption:3,793 GWh
Water Consumption:9,003,000 m3
Waste Generated:494,228 tons

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

Long-term Goals:
  • Achieve climate neutrality by 2040.
Medium-term Goals:
  • 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%.
Short-term Goals:
  • 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

Scope 1 Emissions:416000 tCO2e
Scope 2 Emissions:941000 tCO2e
Scope 3 Emissions:20767607 tCO2e
Renewable Energy Share:14%
Total Energy Consumption:4768294 MWh
Waste Generated:594681 tons
Carbon Intensity:35 tCO2e/Mio EUR sales

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

Long-term Goals:
  • Net zero emissions by 2040
Medium-term Goals:
  • 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
Short-term Goals:
  • 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

Scope 1 Emissions:391000 tCO2e/year
Scope 2 Emissions:776000 tCO2e/year
Renewable Energy Share:23%
Total Energy Consumption:4519803 MWh/year
Waste Generated:580790 tons/year
Carbon Intensity:0.000027 metric tons CO2e per unit currency total revenue

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

Long-term Goals:
  • Achieve net-zero emissions across all three scopes by 2040.
Medium-term Goals:
  • 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.
Short-term Goals:
  • 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

Total Carbon Emissions:11444 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:1817.32 Metric Tons
Scope 2 Emissions:9626.76 Metric Tons
Renewable Energy Share:45%
Total Energy Consumption:122418 GJ/year
Water Consumption:92255 KL/year
Waste Generated:4752 tons/year

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

Long-term Goals:
  • Achieve climate neutrality by 2040.
Medium-term Goals:
  • 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).
Short-term Goals:
  • 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, framework published by International Financial Reporting Standards Foundation, UN Sustainable Development Goals

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