Stakeholder management and materiality analysis

Stakeholders and memberships

To establish a shared understanding of sustainability, the Schaeffler Group is involved in a variety of initiatives and associations that promote standardized measures and processes for effective sustainability management. This includes the development of a uniform standard for measuring and monetarily evaluating the environmental and social impacts of companies as part of the Schaeffler Group’s membership in the Value Balancing Alliance.

In addition to customers, employees, and suppliers, the most important stakeholders also include investors, analysts, associations, universities, and research institutes. Stakeholders are not only incorporated into the process of defining material topics but also encouraged to share information. Formats such as customer workshops, industry dialogues, and professional exchange with universities were used in the reporting year.

Additional focus is placed on exchange in multi-stakeholder formats such as automotive industry dialogue through the National Action Plan (NAP) for the economy and human rights. Working with industry representatives, trade unions, NGOs, and other stakeholders, the Schaeffler Group adopted guidelines for implementing core elements of Human Rights Due Diligence in 2022. For further implementation of the guidelines inside the company and in the value chain, the Schaeffler Group is regularly involved in industry dialogue initiatives, including the development of indicators for measuring the effectiveness of Human Rights Due Diligence.

Results of materiality analysis

Part of NFBBased on the materiality analysis, the Schaeffler Group identified focus areas for the sustainability strategy and defined key topics for reporting. This in-depth analysis is conducted every two years and validated by internal stakeholders in the years between. The most recent detailed analysis was conducted in 2021, during which 13 material topics were identified that cover the five legally defined aspects of Section 315c in conjunction with Sections 289c to 289e of the German Commercial Code (HGB). These were validated with the relevant departments in 2022. Representatives included employees of the strategy, compliance, human resources, and finance functions and the three divisions. The results were confirmed by the Schaeffler Group’s Executive Board.Part of NFB Ende

Results of materiality analysis

Human rights

• Social and ecological standards
  in the value chain

Social matters

• Customer satisfaction
• Product quality and safety
• Long-term, profitable growth

Employee matters

• Employee advancement and development
• Diversity and equal opportunity
• Occupational health and safety
• Attractive workplace

Compliance

• Corporate compliance
• Information security

Environmental matters

• Innovative mobility solutions
• Innovative solutions for the industry and energy sector
• Environment and climate protection

Part of NFBThe detailed 2021 materiality analysis included a global questionnaire that targeted the most important stakeholder groups. More than 1,000 stakeholder responses were received, including those of employees, customers, and suppliers. The results provided important insights for the company’s sustainability strategy, sustainability management, and sustainability performance and were subsequently discussed with relevant internal stakeholder groups.Part of NFB Ende

Ratings and rankings

Part of NFBThe Schaeffler Group further improved its sustainability ratings and rankings in the reporting year through consistent implementation of the sustainability strategy.

The CDP climate change rating has been improved to an “A” (prior year: “A-”) in the reporting year, for example, due to the 2040 target of the climate-neutral supply chain, e-mobility as an opportunity, and measures carried out through the 2021 energy efficiency program. The fact that 100% of the purchased power at all of the European plants came from renewable sources also had a positive impact. The company also managed to improve its CDP water security rating to “A” (prior year: “A-”), which takes into account selected measures from 2021, the management approach for water-related risks, and incorporation of the water target into the management’s short-term, variable remuneration. Thanks to the results in both categories, the Schaeffler Group is among the best 1% of the participating companies.

With 76 out of 100 points, the Schaeffler Group once again achieved Platinum status in the EcoVadis rating (prior year: Platinum status with 75 points), thus positioning the company in the top 1% of the peer group (Manufacture of parts and accessories for motor vehicles) for the second year in a row. Improvements were made particularly in the area of sustainable procurement.

Due to its active commitment, the Schaeffler Group increased its score in the S&P global ESG rating to 54 in 2022 (prior year: 41). Significant improvements were made particularly in the areas of Business Ethics, Information Security/Cybersecurity & System Availability, Product Quality & Recall Management, Climate Strategy, and Occupational Health & Safety

With a score of 9.4 (prior year: 8.8) in the Morningstar Sustainalytics ESG risk rating, the Schaeffler Group was once again allocated to the “negligible risk” category.Part of NFB Ende