Climate neutrality

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SDG 7

Affordable and clean energy

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SDG 12

Responsible consumption and production

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SDG 13

Climate action

  • 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 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 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 ( 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 ( and 2) by 2030. The base year for all the calculations is 2019.

More information on validation of climate targets by SBTi

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 .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 . 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).

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Greenhouse gas emissions, total in thousand t CO2e1)

 

 

2022

 

2021

 

2020

Greenhouse gas emissions, total2) 3)

 

6,742

 

6,898

 

6,278

Of which upstream greenhouse
gas emissions, total

 

6,254

 

6,199

 

5,534

Of which Scope 3.1: Purchased
goods and services

 

5,794

 

5,666

 

4,945

Of which Scope 3.3: Fuel-
and energy-related emissions2)

 

147

 

201

 

211

Of which Scope 3.4: Upstream
transportation and distribution2) 4)

 

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

1)

Values reported as CO2 equivalents for the first time in 2022.

2)

The 2021 value has been adjusted.

3)

This reduction is primarily due to the purchase of 100% green electricity in Schaeffler Group’s Europe and Greater China regions.

4)

The prior year value has been adjusted in accordance with the new method of calculation.

5)

Prior to 2021, supplier-specific emission factors were used to determine Scope 2 (market-based).

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 2).

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) , (3) , (4) , (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. 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 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)

Own greenhouse gas emissions in thousand t CO2, including Scope 1 and Scope 2 (market-based) (bar chart)
1) Values reported as CO2 equivalents for the first time in 2022. Supplier-specific emission factors were used to determine Scope 2 (market-based). The 2021 value has been adjusted.

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 , 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.

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Electricity consumption in GWh1)

 

 

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
(from cogeneration plants)

 

29

 

-

 

-

Of which renewably generated
(by means of own photovoltaic systems)

 

2

 

–

 

–

1)

Figure first reported in 2022.

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.

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Energy consumption in GWh

 

 

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

1)

Reduction as a result of the gas crisis and the Schaeffler Group’s associated reduction measures, including the effects of the initial measures to promote the fuel shift.

2)

The 2021 value has been adjusted.

3)

External electricity purchased and self-generated photovoltaic electricity. Combined heat and power (CHP) electricity is recorded via gas consumption.

4)

LPG reported with natural gas since 2021.

5)

Reduction resulting from implementation of the initial measures to promote the fuel shift.

6)

Figure first reported in 2021.

7)

Reduction due to mild weather conditions.
Part of NFB Ende

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

More information on Green Products

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

More information on the responsibilities of the elements is available
More information on employees
More information on climate action

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.

Climate neutrality
The Schaeffler Group has set itself the goal of reducing the climate impact of its corporate activities to an absolute minimum. Specific emission reduction targets have been set for this purpose: The production of the Schaeffler Group (Scope 1 and 2 market-based) will be climate-neutral by 2030, and by 2040, so will the remaining supply chain (Scope 3 upstream, categories 3.1, 3.3, 3.4). In both cases, this means an emission reduction within the respective scope of at least 90 % (base year 2019). Unavoidable emissions are offset by means of compensation measures. The extent and nature of these measures are to be determined in more detail by the respective target years (2030 and 2040).
Climate neutrality
The Schaeffler Group has set itself the goal of reducing the climate impact of its corporate activities to an absolute minimum. Specific emission reduction targets have been set for this purpose: The production of the Schaeffler Group (Scope 1 and 2 market-based) will be climate-neutral by 2030, and by 2040, so will the remaining supply chain (Scope 3 upstream, categories 3.1, 3.3, 3.4). In both cases, this means an emission reduction within the respective scope of at least 90 % (base year 2019). Unavoidable emissions are offset by means of compensation measures. The extent and nature of these measures are to be determined in more detail by the respective target years (2030 and 2040).
Scope 3 emissions
Includes other indirect GHG emissions resulting from activities in the value chain. Scope 3 upstream refers to the indirect emissions in the upstream supply chain. Scope 3 downstream refers to the indirect emissions in the downstream value chain.
Scope 1 emissions
Direct greenhouse gas emissions from sources that are controlled or owned by the considered organization (e.g. emissions from fuel combustion in boilers and furnaces).
Scope 3 emissions
Includes other indirect GHG emissions resulting from activities in the value chain. Scope 3 upstream refers to the indirect emissions in the upstream supply chain. Scope 3 downstream refers to the indirect emissions in the downstream value chain.
Scope 2 emissions
Indirect greenhouse gas emissions from the generation of purchased energy consumed by the Schaeffler Group.
Scope 1 emissions
Direct greenhouse gas emissions from sources that are controlled or owned by the considered organization (e.g. emissions from fuel combustion in boilers and furnaces).
Scope 2 emissions
Indirect greenhouse gas emissions from the generation of purchased energy consumed by the Schaeffler Group.
Green purchasing
The Schaeffler Group defines Green purchasing as the commitment of our suppliers to sustainable business practices, the use of materials from sustainable sources (e.g. higher proportions of secondary materials, renewable energy sources, or processes that are significantly more energy-efficient being used for production) with reduced CO2 footprints, the use of less environmentally damaging transport and packaging alternatives, and the purchase of electricity from renewable energy sources. These aspects are taken into account in the relevant procurement strategies and processes.
Green production
Green production is a business strategy that focuses on profitability through environmentally friendly operating processes that seek to minimize the impact of the manufacturing process on the environment at every stage, e.g. through energy efficiency measures, the generation and purchase of renewable energies or the conversion of fossil-fuel-driven processes to COCO2-free energy sources such as hydrogen.
Green products
The Schaeffler Group understands Green products as products whose production, transport, use or disposal releases less COCO2 emissions compared to their reference products. COCO2 improvement is integrated into the product development process, e.g. in product design and material selection. The focus is on the entire life cycle, from raw material extraction to production including product use and treatment at the end of life, with the topic of circular economy becoming increasingly important.
Green hydrogen
Green hydrogen is produced using only electricity from renewable sources. Production with Green hydrogen is therefore carbon-free and more environmentally friendly compared to conventional production methods.
Circular Economy
A model which involves efficient use of materials and sharing, using, reusing, repairing, refurbishing and recycling existing products as long as possible. This way, the life cycle of products is extended.
ISO 50001 (Energy Management)
Globally recognized standard for increasing energy efficiency. The worldwide energy management system provides the resources for analysing and implementing energy efficiency measures as well as increasing supply security and optimizing energy costs. ISO 50001 is a mandatory requirement by the customers of the Schaeffler Group and a legal obligation in Europe.

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