Sustainability Roadmap

The Sustainability Roadmap is based on the Schaeffler Group’s materiality analysis and is divided into the four fields of action of “sustainable management”, “customers and products”, “environment and energy”, and “employees and society”. It presents the Schaeffler Group’s non-financial strategic objectives and related United Nations Sustainable Development Goals (SDGs) on the materiality matrix issues.

The strategic objectives include measures that the company wants to use to make its business activities have positive environmental, social and economic effects and to create sustainable company value. In addition, the Roadmap sets out time frames within which Schaeffler intends to implement the measures and the progress achieved by the end of the 2018 reporting period.

The Sustainability Roadmap is evaluated and adjusted or expanded annually based on the materiality analysis. The Schaeffler Group’s 2018 materiality matrix identifies 17 essential issues.

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Fields of Action

Sustainable Development Goals (SDGs)

Goal deadline

Status

**Sustainable management**
Strategic goal	Related to SDG	Measures (extract)	Goal deadline	Status 2018
Compliance
Continuous development of the compliance management system		Successful auditing of the appropriateness and implementation of the compliance management system (CMS) by an independent auditing firm (IDW PS 980)	2018	fulfilled
Continuous development of the compliance management system		Groupwide implementation of a uniform business partner due diligence process as part of the CMS	2020	in progress
Data protection, information, and IT security
Improving the protection of and respect for the personal rights of our employees and business partners to ensure compliance with valid requirements and laws by implementing appropriate measures		Implementation of the EU General Data Protection Regulation	2018	fulfilled
Improving the protection of information of business relevance that represents a competitive factor of decisive importance for Schaeffler’s technological business		Carefully coordinated components of an information security management system (ISMS); organizational, personal, and physical IT security measures based on a security risk analysis that aims to have a preventative, protective, and informative effect both internally and externally	continuous	in progress
Improving the protection of information of business relevance that represents a competitive factor of decisive importance for Schaeffler’s technological business		Development of a comprehensive “Information Security Training and Awareness Concept”	2018	fulfilled
Improving the protection of information of business relevance that represents a competitive factor of decisive importance for Schaeffler’s technological business		Rollout of awareness training within the “Information & Cyber Security” program	2020	in progress
Implementing data protection and information security protection requirements with information technology tools to ensure the availability, integrity, confidentiality, and authenticity of company data and related data processing systems		Introduction of the global “IT Security by Design” process	2018	fulfilled
Implementing data protection and information security protection requirements with information technology tools to ensure the availability, integrity, confidentiality, and authenticity of company data and related data processing systems		Rollout of the “IT Security by Design” process in the regions	2019	in progress
Further development of groupwide business continuity management		Establishment of a groupwide crisis management structure to safeguard the economic existence of the company in parts and as a whole, even in the event of a major loss	2019	in progress
Further development of groupwide business continuity management		Introduction of a business impact analysis in relevant business areas	2021	in progress
Further development of groupwide business continuity management		Ongoing development of crisis management competence at the Schaeffler Group through crisis exercises and training of crisis team members	continuous	in progress
Responsibility in supplier relationships
Implementing the OECD guidelines for the responsible use of minerals from conflict and high-risk areas		Implementation of internationally recognized standards in the material compliance process landscape as part of the groupwide management system	2021	in progress
Written recognition of the Schaeffler Supplier Code of Conduct (SCoC) by existing production material suppliers		Implementation of the Supplier Code of Conduct in existing processes (phased, prioritized integration)	2020	in progress
Written recognition of the Schaeffler Supplier Code of Conduct (SCoC) by existing production material suppliers		Rollout of the Supplier Code of Conduct and confirmation by suppliers according to priority	2020	in progress
Human rights
Complete alignment of all relevant business activities according to requirements formulated in the principles of the UN Global Compact and the German National Action Plan on Business and Human Rights		Further development of human rights due diligence and alignment of the entire process landscape of the Schaeffler Group according to human rights principles	2020	in progress

**Customers and products**
Strategic goal	Related to SDG	Measures (extract)	Goal deadline	Status 2018
Sustainable products and technologies
Eco-friendly drives
Expansion of the E-Mobility field to realize eco-friendly drive concepts		Establishment of an E-Mobility business division	2018	fulfilled
Expansion of the E-Mobility field to realize eco-friendly drive concepts		Development of total technological solutions for E-Mobility (e.g. wheel hub drives and electric axles); Electrification of conventional power trains (e.g. integration of the 48-V electric motor into the motor-transmission-network and development of a high-voltage hybrid model for plug-in hybrid drives)	continuous	in progress
Expansion of the E-Mobility field to realize eco-friendly drive concepts		Development of basic solutions for the electric machine, power electronics, and regulations as part of the “SHARE at KIT” program	continuous	in progress
Increasing the efficiency of internal combustion engines to reduce harmful emissions		Expansion of the product range in the area of thermal management with series use of smart single valves	2019	in progress
Increasing the efficiency of internal combustion engines to reduce harmful emissions		Expansion of skills in the area of P0 hybridization through joint development of the decoupler and FEAD clamping systems product fields	2019	fulfilled
Increasing the efficiency of internal combustion engines to reduce harmful emissions		Further development of the variable valve train for hybrid and non-hybrid drives, e.g. with the series introduction of the variable eRocker system	2022	in progress
Increasing the efficiency of internal combustion engines to reduce harmful emissions		Mechanical and tribological optimization of engine components (e.g. through surface coatings to minimize wear and friction)	continuous	in progress
Synthetic fuels		Participation in the EU Horizon 2020 GasOn (monovalent natural gas engine) program	2019	fulfilled
Synthetic fuels		Participation in the EU research project “CO₂EXIDE – CO₂-based electrosynthesis of ethylene oxide” and development of a coating process for catalysts with nanostructured coatings	2021	in progress
Synthetic fuels		Participation in the MethQuest (CNG) and NamoSyn (OME) research projects	2022	in progress
Entry into fuel cell technology to realize CO₂-neutral mobility		Development of metallic coated bipolar plates	continuous	in progress
Entry into fuel cell technology to realize CO₂-neutral mobility		Development of systematic bases in the fields of electrochemistry and fluid flow as part of the “SHARE at KIT” program	continuous	in progress
Urban mobility
Entry into the market for “light” E-mobility		Spin-off of Bio-Hybrid GmbH	2018	fulfilled
Entry into the market for “light” E-mobility		Industrialization of the Bio-Hybrid	2020	in progress
Entry into the market for robo-taxis		Acquisition of the “Drive-by-wire” technology “SpaceDrive” from Paravan and the founding of the Schaeffler Paravan technology joint venture	2018	fulfilled
Interurban mobility
Development of “smarter” bearings for rail transport		Implementation of the “Predictive Maintenance” approach to realize optimum maintenance intervals and longer running times for trains	continuous	in progress
Energy chain
Entry into the industrialization of large stationary storage (organic redox flow battery)		Development of a development cooperation with the start-up CMBlu	2018	fulfilled
Entry into the industrialization of large stationary storage (organic redox flow battery)		Industrialization of the redox flow technology together with CMBlu	2021	in progress
Entry into battery technologies		Development of skills in the field of cell chemistry as well as battery models and management systems as part of the “SHARE at KIT” program	continuous	in progress
Optimization and new development of products for wind turbines		Development of low-friction bearings for wind power to increase running times; development of a cloud-based software solution to monitor wind turbines	continuous	in progress
Customer relationships
Deepening of our employees’ multifunctional global customer concept to provide optimized solutions and further intensification of our customer relations		Cross-divisional standardization of the customer relationship management tool (Salesforce)	2018	fulfilled
Deepening of our employees’ multifunctional global customer concept to provide optimized solutions and further intensification of our customer relations		Global rollout of a system architecture for customer relationship management	2019	in progress
Deepening of our employees’ multifunctional global customer concept to provide optimized solutions and further intensification of our customer relations		As part of the Corporate Sales & Key Account Management Training curriculum, the Schaeffler Group’s sales employees are provided with training courses worldwide	continuous	in progress
Quality management
Avoid product liability cases with measures taken from product safety		Global rollout of an integrated product safety management system	2019	in progress

**Environment and energy**
Strategic goal	Related to SDG	Measures (extract)	Goal deadline	Status 2018
Environmental management
Medium-term fulfillment of the requirements for a “zero waste to landfill factory” in one location per region, based on production-related waste		Analysis of relevant KPIs; selection of potential locations taking state regulations into account; formulation of a project plan to meet objectives per location	continuous	in progress
Material and resource management
Increase of material efficiency through the use of recycled material		Reuse of raw materials, such as steel and aluminum	2020	in progress
Fundamental anchoring of sustainability in the entire production environment of the Schaeffler locations as part of the “Sustainable Factory”		Development and coordination of the concept of a sustainable factory, including approval by the Executive Board	2020	in progress
Fundamental anchoring of sustainability in the entire production environment of the Schaeffler locations as part of the “Sustainable Factory”		Successful piloting of a production facility as an autonomous, digital, and sustainable factory	2021	in progress
Logistics
duction of CO₂ emissions in logistics		Development of a methodology for recording controllable Scope 3 emissions	2020	in progress
duction of CO₂ emissions in logistics		CO₂ and cost reduction in logistics through the EDZ Industry Logistics Initiative (European distribution centers)	2020	in progress
Worldwide expansion of climate-friendly employee mobility		Creation of a holistic and sustainable mobility concept for the locations, including the local infrastructure, sharing services, Schaeffler in-house developments, and the possibilities of electrification in private transport, pilot in Herzogenaurach	2020	in progress
Worldwide expansion of climate-friendly employee mobility		Increase in the share of electric vehicles in the vehicle fleet; monetary incentives for the use of electric vehicles, in particular plug-in hybrids and electric cars	continuous	in progress
All German sites have charging infrastructure for electric vehicles		Creation of a technical standard for charging infrastructure; framework call-off contracts; introduction of a software backend	2018	fulfilled
All German sites have charging infrastructure for electric vehicles		Construction of charging infrastructure at all German plant locations	2020	in progress

**Employees and society**
Strategic goal	Related to SDG	Measures (extract)	Goal deadline	Status 2018
Employee advancement and development
Demand-oriented and predictive qualification and development for all employees		Succession planning as a part of the global talent management process	2019	fulfilled
Demand-oriented and predictive qualification and development for all employees		Worldwide implementation of the new learning management system as part of the “Qualification for Tomorrow” initiative	2020	in progress
Occupational health and safety
Ensuring a healthy occupation until retirement age is reached by avoiding unhealthy physical stresses at the workplace		Review of all workplaces to detect potential unhealthy physical stresses and application of an ergonomic analysis tool prior to revision worldwide	2021	in progress
Continuous reduction of occupational accidents by 10% per year (measurement: AccR)		Conversion of the sites certified according to OHSAS 18001 to ISO 45001	2021	in progress
Continuous reduction of occupational accidents by 10% per year (measurement: AccR)		Implementation of appropriate measures taking into account site-specific conditions	continuous	fulfilled
Diversity
Targeted support of diversity within the corporation through diversity management		Piloting a “mentoring” program	2018	fulfilled
Targeted support of diversity within the corporation through diversity management		Expansion and global rollout of the “reverse mentoring” program	2019	in progress
Targeted support of diversity within the corporation through diversity management		Expansion of diversity management in HR core processes	2019	in progress
Targeted support of diversity within the corporation through diversity management		Introduction of targeted mentoring for women	2019	in progress
Targeted support of diversity within the corporation through diversity management		Definition of internal reporting and diversity KPIs	2020	in progress
Compensation and retirement benefits
Global development, harmonization, and simplification of Schaeffler compensation models		Global rollout of job grading (job assessment method)	2020	in progress
Global implementation of the job catalog as the basis for the main compensation, supplemental, and other HR processes		Global rollout of the job catalog incl. technical mapping in the HR core systems	2020	in progress
Work-life balance
Expansion of flexible and mobile working conditions to keep up with the demands of changing work environments and future generations		Flexible working hours solutions such as part-time, partial retirement, and reverse shift models	continuous	in progress
Corporate citizenship
Realize transparent corporate citizenship and integrate it within the specific business divisions		Introduction of a globally valid sponsoring concept for the Schaeffler Group	2020	in progress

Sustainability

Sustainability means utilizing natural resources in a way that observes the particular economic, environmental and social conditions without neglecting the interests of future generations.