Glossary

Electric axle drive for vehicles consisting of an electric motor, power electronics, transmission and thermal management in one integrated system.

Within the action field of Business Integrity, the activities required for the prevention, early detection and response to potential compliance violations in the areas of corruption, money laundering, competition and antitrust law, and white-collar crime are managed and monitored to ensure compliance with applicable local, national and international laws and regulations and Schaeffler Group values.

Circularity means closing loops and reusing raw materials, components and products as long as possible. The Schaeffler Group focuses on the use of secondary raw materials as well as the avoidance and reduction of waste. Circular economy tools provide the Schaeffler Group the opportunity to support a sustainable and future-oriented transformation, also with regard to climate protection.

In order to contribute to climate protection, the Schaeffler Group has set itself the following emission reduction targets: By 2030, its own production (Scope 1 and 2 market-based) will be climate-neutral. By 2040, the substantial parts of the remaining supply chain (Scope 3 upstream) will follow suit. To achieve this goal, Schaeffler focuses on optimizing energy requirements and using energy from renewable sources for its own production.

Good corporate governance is an expression of responsible corporate management. The Schaeffler Group only enters into business dealings and relationships if they are in line with its corporate values – sustainable, innovative, excellent and passionate. The risk management system, the internal control system and the compliance management systems work together in a coordinated manner as part of the governance structure. Thus, responsibilities are clearly defined, the necessary transparency within the organization is created and the corporate values are supported.

The common goal of human resources is to attract, support and retain employees by being an attractive employer. Employee development as well as the promotion of inclusion and diversity are seen as key investments in the future of the Schaeffler Group and provides a competitive advantage.

Green products are products whose CO₂ footprint over their entire life cycle is reduced compared to their reference products. The Schaeffler Group is taking a holistic approach to the development of Green products with the aim of optimizing all parts of its value chain as well as focusing on the energy efficiency of its products. The use of Green materials and the optimization of manufacturing processes and product series with increased efficiency are some examples of this holistic approach. The requirements of a circular economy are also increasingly taken into account throughout the entire product life cycle.

The safety and conformity of marketed products, including services and software, and processes with respect to applicable legal and regulatory requirements and the legitimate safety expectations of end users throughout the life cycle and value chain.

Resource-efficient action plays a key role with regard to global challenges such as climate change and water scarcity. As such, the Schaeffler Group has already set a target of reducing its water consumption by 20 % by 2030.

Respect for human rights is an integral part of social responsibility within the Schaeffler Group. The company and its employees are committed to respecting the dignity and personal rights of all people as well as all parties with whom the company is associated through its activities, business relationships and products. The Schaeffler Group actively prevents and eliminates human rights violations as part of a human rights due diligence process. The Schaeffler Group strives to positively influence the personal rights of all persons with whom the company is associated. The Schaeffler Group expects its partners to comply with its standards for ecological, economic and social responsibility. Therefore, the Schaeffler Group identifies, manages and optimizes the impact of its activities in the supply network.

Within the Schaeffler Group, the Automotive Aftermarket division is responsible for the global spare parts business for passenger cars and commercial vehicles.

As a partner to the global automotive industry for passenger cars and commercial vehicles, the Automotive Technologies division develops and produces components and systems for fully electric and hybrid drives, for internal combustion engines and for chassis systems.

Formerly known as the Carbon Disclosure Project. A non-profit organization that runs a global disclosure system for environmental data and evaluates the information for investors, companies and governments in the areas of climate, water and forests.

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.

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).

The Code of Conduct (CoC) describes the values and principles of behaviour to be followed in letter and spirit by all employees of the Schaeffler Group. Compliance with the commands and prohibitions is also expected from the Schaeffler Group’s business partners.

The Compliance Management System describes all measures, structures and processes established at a company to ensure compliance with legal and ethical requirements.

Set of legal and practical requirements for the management and supervision of companies.

Heat pump used for thermal management in vehicles (esp. e-vehicles) which is operated with the natural refrigerant carbon dioxide. It has less impact on the environment than conventional refrigerants and also has physical characteristics which allow more efficient heating of vehicles.

The CSR Directive Implementation Act (Sections 289b et seq. of the German Commercial Code) requires the disclosure of information on the following five non-financial aspects: environmental, social and labour aspects, respect for human rights as well as anti-corruption and bribery matters. The CSR-RUG is based on European Directive 2014/95/EU.

Diversity is expressed in terms of gender, gender identity, nationality, ethnicity, age, physical and mental ability, sexual orientation, as well as worldview and religion, among others.

Corporate initiative to promote diversity in companies and institutions. Organizations should create a working environment that is free of prejudice. All employees should be valued – regardless of gender, nationality, ethnic origin, religion or belief, disability, age, sexual orientation and identity.

The Eco-Management and Audit Scheme is a joint system for environmental management and auditing according to whose requirements Schaeffler Group locations are audited and thereby make their environmental performance visible.

The Schaeffler Group considers factors impacting the company in the areas of environment, social affairs and corporate governance.

System for a highly variable valve train in internal combustion engines to reduce fuel consumption and CO₂ emissions.

The EU taxonomy is a comprehensive classification system from the European Union that aims to facilitate the comparison of different companies` activities in the area of sustainability.

Founded in 1997, this organization uses a participatory procedure to develop criteria for the preparation of sustainability reports.

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.

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.

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.

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.

All people, regardless of identity, background or experience, have equal opportunities and access to resources.

The Industrial division develops and manufactures precision components, both rotative and linear bearing solutions, drive technology components and systems, as well as service solutions such as sensor-based condition monitoring systems for a variety of industrial applications. In addition, the division is working intensively on new products and solutions for the hydrogen economy.

Joint venture between the Schaeffler Group and Symbio with the aim of producing bipolar plates for fuel cell systems

The Schaeffler Group is also certified in accordance with the international standard ISO 14001 (Environmental Management) in conjunction with EMAS. This enables the company to continuously improve its environmental performance.

Global and most common standard for information security management systems.

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.

A smart repair solution that contains all the individual parts required for professional vehicle repair in just one package.

Life cycle assessments serve as a tool to record, evaluate and present the environmental impact of products.

Standard key figure for recording accidents at work; defined as occupational accidents from at least one lost day per 1 million hours worked.

The National Action Plan for Business and Human Rights is an initiative of the German federal government. It aims to combine the forces of various actors from government, business, civil society and trade unions to promote respect for human rights in global value chains.

International organization with 38 member states committed to democracy and a market economy.

A quality management system (QMS) is a part of the holistic method of enterprise management. The goal is systematic quality management and process control. The quality management system ensures that corporate quality, system quality, process quality and product quality are established, inspected and improved within an organization. The aim of a quality management system is to achieve lasting improvement in business performance and customer satisfaction.

Screening of the country of origin of raw materials or minerals used, in order to avoid contributing to the financing of armed conflicts through the extraction of these raw materials.

The Roadmap 2025 comprises the Schaeffler Group’s strategy, execution program as well as financial mid-term targets and intends to ensure the strong position of the company in the future.

The Schaeffler Academy combines all global activities from apprenticeship to training and qualification. It supports strategic corporate objectives, promotes a culture of lifelong learning and enables employees to achieve their professional and personal goals.

The first repair solution of the Schaeffler Group for e-axles that enables garages to professionally repair technically ambitious electric vehicles. All the necessary transmission components can be replaced in a single repair process.

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).

Indirect greenhouse gas emissions from the generation of purchased energy consumed by the Schaeffler Group.

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.

A supplier questionnaire in the automotive (supplier) industry which was developed by an association of 11 OEMs under the name of “Drive Sustainability”. It aims to illustrate the sustainability performance of suppliers. The questionnaire can be shared with different customers via the platform NQC Ltd. (independent entity), which reduces the processing workload for suppliers. The individual evaluation of the questionnaires is performed by the customers. The general rule is that participation is mandatory and relevant for the awarding for identified suppliers.

With the separate Non-financial Group Report, the Schaeffler Group makes use of the option pursuant to Section 315b (3) of the German Commercial Code to prepare the non-financial disclosure (NFD) outside the Group Management Report. Thus, it is integrated in the Sustainability Report. The NFD contains information on environmental, social and employee aspects as well as on respect for human rights and anti-corruption.

Describes the values and principles of conduct required of all suppliers, their employees and the supply chain. These values and principles of conduct represent the binding foundation for the global cooperation of the Schaeffler Group with its suppliers. Therefore, the Schaeffler Group expects all suppliers to feel responsible for complying with this Supplier Code of Conduct and also support each of their employees and suppliers in doing so.

For the Schaeffler Group, doing business sustainably means using natural resources responsibly and sparingly so that they can also be used by future generations. Ten action fields were defined along the ESG framework (Environment, Social, and Governance) in order to strengthen this aspect of sustainability within the Schaeffler Group.. These action fields represent key topics for the Schaeffler Group and are backed by ambitious targets. The company takes the entire value chain into consideration in its operations.

As part of the Agenda 2030, the United Nations (UN) has formulated 17 Sustainable Development Goals (SDGs). These encompass economic, ecological and social aspects.

Expert commission of the G20 that develops recommendations on standardized climate reporting. These cover the areas of governance, strategy, risk management, metrics and targets.

Standard for information security defined by the automotive industry.

British law which requires companies to report on their measures for combating modern slavery, human trafficking and forced labour in the supply chain.

The largest initiative for responsible corporate management worldwide, with around 12,000 companies and organizations from the public, political and academic sectors in 160 countries. Following ten universal principles, it pursues an inclusive and sustainable world economy for the benefit of all people, communities and markets.

Association of multinational companies that aim to create ways to measure and compare the value of companies’ contributions to society, the economy and the environment.