Climate neutrality
- The Schaeffler Group created a complete Climate Action Plan to develop and implement the necessary climate action measures
- The Schaeffler Group’s production-related CO2e emissions were reduced by around 30% compared to the prior year
Determination of greenhouse gas emissions
Part of NFBClimate change is one of the world’s most pressing challenges, which is why the Schaeffler Group is making every effort to significantly reduce its climate impact. The Greenhouse Gas (GHG) Protocol forms the foundation for the company’s CO2e reporting. The Schaeffler Group’s overarching goal is to be climate-neutral by 2040. For the company, climate-neutral means reducing the impact of its operations on the climate to an absolute minimum and setting off any remaining emissions. Efforts to achieve these targets focus on reduction measures, and unavoidable emissions are offset with compensation measures. The form and scope of these measures have not yet been defined in greater detail.
To achieve the overarching goal of climate neutrality by 2040, the company set itself two sub-targets, which have been validated by the Science Based Targets initiative (SBTi). By 2030, the Schaeffler Group plans to reduce the emissions of input and raw materials (Scope 3 upstream1)) that occur in the supply chain by 25%. The aim is to prevent 90% of emissions that are harmful to the climate in own production (Scope 1 and 2) by 2030. The base year for all the calculations is 2019.
The climate neutrality targets have been adopted by the Executive Board. Progress reports regarding these targets are regularly provided at board meetings.
The Schaeffler Group currently considers four Scope 3 upstream categories. The method for calculating Scope 3.1, Scope 3.4 and Scope 3.5 values was adjusted in the reporting year. The greenhouse gas emissions of Scope 3.1 “Purchased goods and services” include all upstream (cradle-to-gate) emissions resulting from the production of goods and services purchased or acquired by the Schaeffler Group in the reporting year. Using the estell model, the physical or monetary volume of purchased goods and services is multiplied with the sector- and country-specific emission factors to calculate Scope 3.1 greenhouse gas emissions.
The greenhouse gas emissions of Scope 3.3 “Fuel- and energy-related activities” include greenhouse gas emissions associated with the production of fuels and energy that are purchased and consumed by the Schaeffler Group in the reporting year and are not yet included in Scope 1 and Scope 2. This includes the extraction, production, and transport of fuels used by the company either directly or indirectly through the generation of electricity, steam, heating, and cooling, as well as transmission and distribution losses. Scope 3.3 greenhouse gas emissions are calculated by multiplying consumption data specified in accordance with the generation technology with the emission factors of DEFRA (2022), VDA (2022) and the German Federal Environmental Agency (2022).
The greenhouse gas emissions of Scope 3.4 “Upstream transportation and distribution” include emissions resulting from the transport and distribution of products purchased in the reporting year between the Schaeffler Group’s direct suppliers (Tier 1) and its locations using vehicles that the Schaeffler Group does not own or operate.Part of NFB Ende
Overview of GHG emissions
Part of NFBThis also takes into account the transport and distribution services purchased by the company in the reporting year, including inbound and outbound logistics as well as transport and distribution between internal locations using vehicles that the Schaeffler Group does not own or operate. Scope 3.4 greenhouse gas emissions are calculated by determining the mass, distance, and statistically used mode of transport for each transport based on the specific emission factor using ecoTransIT.
The greenhouse gas emissions of Scope 3.5 “Waste generated in operations” includes greenhouse gas emissions associated with the disposal and treatment of waste generated through the Schaeffler Group’s own or controlled activities in the reporting year. Scope 3.5 greenhouse gas emissions are calculated by multiplying the volumes of certain waste types – taking into account the waste treatment process – with the specific emission factors of DEFRA (2022).
|
|
2022 |
|
2021 |
|
2020 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Greenhouse gas emissions, total2) 3) |
|
6,742 |
|
6,898 |
|
6,278 |
||||||||||||
Of which upstream greenhouse |
|
6,254 |
|
6,199 |
|
5,534 |
||||||||||||
Of which Scope 3.1: Purchased |
|
5,794 |
|
5,666 |
|
4,945 |
||||||||||||
Of which Scope 3.3: Fuel- |
|
147 |
|
201 |
|
211 |
||||||||||||
Of which Scope 3.4: Upstream |
|
293 |
|
309 |
|
343 |
||||||||||||
Of which Scope 3.5: Waste treatment and disposal4) |
|
20 |
|
23 |
|
35 |
||||||||||||
Of which internal greenhouse gas emissions, total2) 3) |
|
488 |
|
699 |
|
744 |
||||||||||||
Of which Scope 1 |
|
180 |
|
207 |
|
180 |
||||||||||||
Of which Scope 2 (market-based)2) 3) 5) |
|
308 |
|
492 |
|
564 |
||||||||||||
|
Scope 1 and Scope 2 greenhouse gas emissions are calculated using supplier-specific primary data, VDA (2022), DEFRA (2022), and the ProBas database of the German Federal Environmental Agency. The emission sources natural gas/LPG, heating oil, propane, and methanol are included in Scope 1, and the purchase of electricity and district heating/steam in Scope 22).
Reducing Scope 3 downstream emissions requires measures that focus on the phase of product use. The company has established the corresponding working groups to further develop Scope 3 downstream calculation in the future. No corresponding figures are published at present.Part of NFB Ende
Climate Action Plan
Part of NFBA comprehensive Climate Action Plan was developed in 2022 that forms the basis for the development and implementation of necessary climate action measures such as greenhouse gas reduction. The Climate Action Plan consists of six key elements: (1) strategy, (2) Green Purchasing, (3) Green Production, (4) Green Products, (5) Finance & IT, and (6) employees. Each of the six elements is allocated to one or more members of the Executive Board and features concrete implementation measures.Part of NFB Ende
Climate Action Plan
Strategy
Part of NFBThe Climate Action Plan consists of concrete targets and measures to promote an emissions reduction path that goes beyond the 1.5-degree target of the Paris Agreement and achieves carbon neutrality in the Schaeffler Group by 2040. One of the key future tasks will be to increasingly incorporate non-financial figures into Group management alongside the financial figures. The planned establishment of sustainability criteria in key business processes such as product development, purchasing, and investment form the core of the strategy element, as do company-wide modeling of emissions projections, identification of the financial implications of the emissions reduction path, and the definition and monitoring of internal annual ambition levels.Part of NFB Ende
Green Purchasing
Part of NFBThe “Green Purchasing” element primarily refers to the purchase of low-emission materials and services. In the case of steel, aluminum, plastic, electronic components, and logistics, important aspects were identified that, due to the product portfolio, play a key role in decarbonization. On this basis, the Schaeffler Group is further developing its purchasing strategy and is looking to enter into an active dialog with potential suppliers – for example, for purchasing green roller bearing steel.
In the reporting year, emission values were calculated for all of the raw and other materials purchased, with potential for reduction identified in certain cases – all in an effort to achieve a climate-neutral supply chain by 2040 and reduce emissions by at least 25% by 2030 (base year 2019).
Scope 3 upstream greenhouse gas emissions in thousand t CO2e1)
1) Values reported as CO2 equivalents for the first time in 2022.
2) The 2021 value has been adjusted.
3) The prior year value has been adjusted in accordance with the new method of calculation.
Due to its large carbon footprint, the procurement of steel represents a significant sustainability challenge for the Schaeffler Group. Green hydrogen can make the steel production process climate-neutral over the long term. However, in the short to medium term, other measures will be necessary to reduce Scope 3 upstream emissions. Due to the large volume of steel used in the Schaeffler Group’s products, the company is conducting careful analysis of the primary influential factors relevant for using steel. The strategies for decarbonizing steel production are therefore being evaluated, after which recommended courses of action for combining short, medium, and long-term measures will be developed.
The company is holding talks with suppliers to monitor and explain concrete steps for reducing production-related CO2e emissions. Concepts are also being developed that take into account efforts to achieve a circular economy and increase the use of green energy.
Measures include the Green Steel Activation program, which is open to new technologies and examines the multiple influential variables of steel production and finishing. At the end of 2021, the Schaeffler Group agreed to procure 100,000 metric tons of nearly carbon-free, hydrogen-produced steel annually from Swedish start-up H2 Green Steel beginning in 2027. The steel is produced in Sweden and does not require any fossil fuels. This deal represents the first important step toward making the company’s supply chain climate-neutral by 2040.
The Schaeffler Group also identifies suppliers that manufacture flat steel primarily using scrap. These suppliers were identified for the Europe and Americas region. The first test batches are already being acquired for products and validated in processing tests. Using scrap as a base material can reduce the carbon footprint by more than 60% compared to steel production based on iron ore.
The Schaeffler Group will be able to better manage upstream emissions in the future thanks to software solutions such as the “Schaeffler Supplier Data Base” as well as improved transparency in the presentation of supplier-specific data.Part of NFB Ende
Green Production
Part of NFBDecarbonizing production (Scope 1 and 2) is based primarily on a transition to climate-neutral production processes, the procurement of green input and other materials, and the use of renewable energies through both internal production and purchase of green electricity.
Own greenhouse gas emissions in thousand t CO2e1), including Scope 1 and Scope 2 (market-based)
As a result of ongoing improvement in energy efficiency and the increased share of renewable energies, the Schaeffler Group’s production-related CO2e emissions fell by around 30% from 699,0003) to 488,000 metric tons of CO2e compared to the prior year. Evaluating and considering both emission potential and costs, the company first developed concrete measures with an implementation deadline at the end of 2030, so that these can then be integrated into a comprehensive reduction path. The Schaeffler Group plans to consistently implement and optimize this reduction path in the years to come.
With CO2e reduction potential, the Schaeffler Group’s energy management defines minimum targets for all plants to increase energy efficiency. The plants themselves also set their own targets, with implementation and developments in energy consumption assessed in internal and external Energy, Environment, Health & Safety (EnEHS) audits. The company-wide documentation of energy consumption and an internally defined management approach form the basis for ongoing improvement in the area of energy efficiency. The Schaeffler Group also works with a globally standardized energy management system based on ISO 50001, which achieved a coverage rate4) of 100% again in 2022 (prior year: 100%).
In 2020, the Schaeffler Group started bundling all relevant resources in a single energy efficiency program with an interdisciplinary team on a local, regional, and central level. The aim is to identify and implement energy efficiency measures between 2020 and 2024 that will result in cumulative annual energy savings of 100 GWh as of 2025. A total of 204 energy efficiency measures implemented and externally verified in 2020 and 2021 led to cumulative annual savings of at least 46.8 GWh as of 2022. Thanks to 69 measures implemented in the year under review, global improvements will increase to cumulative 64.2 GWh as of 2023. These comprise the further shift to intelligent LED lighting systems, and measures such as optimization of heating systems using waste heat from production and supply systems. In addition to optimizing infrastructural systems, the measures implemented also include improved heat insulation for hardening furnaces and reducing the temperature for high-energy cleaning processes.
The demand for electrical energy will continue to increase in the next years. Self-generated renewable energy will therefore be expanded at Schaeffler locations to complement the existing energy efficiency program. Since 2022, 100% of all the electricity used at the European and Chinese plants has come from renewable sources, with plants in the Americas region to follow in 2023 and the Asia/Pacific region in 2024. Self-generated renewable energy should cover 10% of annual electricity demands worldwide by 2025 and 25% by 2030, which is why the Schaeffler Group is expanding its internal energy production with photovoltaic (PV) systems. The locations in Kitzingen (Germany), Pune and Savli (India), and Szombathely (Hungary) alone offer a total capacity of 2.3 MWp based on PV systems. In the reporting year, the company planned another 22 PV systems with a total capacity of 26.1 MWp for its own buildings. The systems should begin operating gradually by the end of 2023. For example, rooftop PV systems with an annual electricity generation of around 340 MWh were installed on a space measuring approximately 1,850 square meters in Herzogenaurach, Germany, in December 2022. A nearby solar farm should fully cover the electricity requirements of the Höchstadt location in Germany by mid-2024. In the reporting year, the Schaeffler Group also acquired a PV power station in Germany, which can cover around 2% of the electricity requirements of the Schaeffler locations in Germany.
|
|
2022 |
|
2021 |
|
2020 |
||||
---|---|---|---|---|---|---|---|---|---|---|
Consumption of externally produced electricity |
|
2,237 |
|
- |
|
- |
||||
Of which conventional |
|
527 |
|
- |
|
- |
||||
Of which from a renewable source |
|
1,710 |
|
- |
|
- |
||||
Consumption of internally produced electricity |
|
31 |
|
- |
|
- |
||||
Of which conventional |
|
29 |
|
- |
|
- |
||||
Of which renewably generated |
|
2 |
|
– |
|
– |
||||
|
A Power Purchase Agreement (PPA) was concluded in 2022 with a volume of approximately 60,000 MWh of green electricity for the Schaeffler plants in Germany as of 2023, which corresponds to around 11% of total electricity requirements in Germany. Additional plans for on-site, near-site, and off-site PPAs are in the pipeline. The Schaeffler Group also aims to cover all externally purchased power with renewable energy by 2024.
There is also a focus on retrofitting existing systems that provide process and infrastructure heat for use with renewable energies. The company classified the process and infrastructure heat systems according to feasibility in the fuel technology shift and calculated the corresponding emissions reduction potential and cost implications in order to develop a roadmap for the shift in fuel technology. The company is also making every effort to ensure that newly built systems are climate-friendly and the corresponding requirements are integrated into the awarding and investment guidelines.
|
|
2022 |
|
2021 |
|
2020 |
||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total energy consumption1) 2) |
|
3,217 |
|
3,369 |
|
3,045 |
||||||||||||||||
Of which electricity2) 3) |
|
2,239 |
|
2,244 |
|
2,078 |
||||||||||||||||
Of which natural gas/LPG1) 2) 4) |
|
793 |
|
923 |
|
830 |
||||||||||||||||
Of which heating oil5) |
|
3 |
|
6 |
|
6 |
||||||||||||||||
Of which propane2) |
|
53 |
|
53 |
|
45 |
||||||||||||||||
Of which methanol2) 6) |
|
81 |
|
86 |
|
- |
||||||||||||||||
Of which district heating7) |
|
48 |
|
57 |
|
49 |
||||||||||||||||
|
Green Products
Part of NFBIn the “Green Products” element, the company is developing a comprehensive concept for automated and holistic calculation of carbon footprints to ensure and monitor emissions reductions on a product level and beyond. In an effort to systematically decarbonize the product portfolio, the company is analyzing potential for reducing the CO2e emissions of products as well as economic and technical feasibility, thus ensuring the most efficient and forward-looking decarbonization of the product portfolio possible. The early stage of product development focuses on decarbonizing the product portfolio, the aim of which is primarily to acquire climate-neutral materials and ensure climate-neutral production, as well as reducing the emissions of the Schaeffler Group’s products during the use phase.Part of NFB Ende
Finance & IT
Part of NFBThe “Finance & IT” element is concerned with further optimization of internal and external sustainability reporting and the development of consistent models for sustainability data, a suitable IT infrastructure, and the necessary sustainability management models, which primarily entails further development of the system for documenting and providing company- and product-related emissions data.Part of NFB Ende
People
Part of NFBThe measures for achieving the defined emissions reduction path represent a major challenge for the Schaeffler Group and require a high degree of employee commitment, which is why the company will implement corresponding training and information campaigns to better acquaint all employees with sustainable behavior. A whole host of related ideas and suggestions were submitted following the Climate Action Day and will be gradually integrated into business processes.
The Schaeffler Group is also making every effort to minimize the carbon footprint associated with business travel and preparing to integrate climate aspects into the company car and business travel guidelines, which will be valid as of 2023.Part of NFB Ende
1) Scope 3 categories included: 3.1, 3.3 and 3.4.
2) Methanol was not included in Scope 1 and Scope 2 greenhouse gas emissions for 2020.
3) The 2021 value has been adjusted.
4) Relating to plant employees.