At a glance
Part of NFRClimate 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 target is climate-neutral production (Scope 1 and Scope 2) by 2030 and a climate-neutral supply chain (Scope 3 upstream) by 2040. For the company, climate-neutral means reducing the impact of its operations on the climate to an absolute minimum and counterbalancing any remaining emissions. Efforts to achieve these targets focus on reduction measures, unavoidable emissions are counterbalanced. The form and scope of these measures have not yet been defined in detail.
The Climate Neutrality targets were adopted by the Executive Board in 2021. The Schaeffler Group currently includes four Scope 3 upstream categories in its reporting.
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. An external service provider calculates Scope 3.1 greenhouse gas emissions by multiplying the physical or monetary volume of purchased goods and services by the sector- and country-specific emission factors – using the input-output tables of the OECD ICIO, Exiobase, and BEA.
The greenhouse gas emissions of Scope 3.3 “Fuel- and energy-related activities” include the 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 or 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 by the emission factors of DEFRA (2023), the VDA (2022), and the German Federal Environmental Agency (2023).
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. This 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. This includes the emissions associated with third-party operation of storage and transshipment facilities. Scope 3.4 greenhouse gas emissions for transport services are calculated by determining the mass, distance, and statistically used transport mode for each transport based on the specific emission factor using ecoTransIT. The emissions associated with the operation of third-party warehouses are calculated and added on the basis of a “spend-based approach” and thereby using the methods of Scope 3.1 calculations based on the monetary volume of the services purchased.
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 – by the specific emission factors of DEFRA (2023). Waste treatment processes were broken down in greater detail in the reporting year, increasing the precision of emission factor allocation.
Scope 1 and Scope 2 (market-based) greenhouse gas emissions are calculated using supplier-specific primary data as well as the data of the VDA (2022), DEFRA (2022), and the ProBas database of the German Federal Environmental Agency. The emission sources natural gas/LPG, heating oil, propane, methanol, and refrigerant leaks are included in Scope 1, and the purchase of electricity and district heating/steam in Scope 2.
Measures that focus on the product use phase, in particular, are essential for reducing Scope 3 downstream emissions. The company has established the corresponding working groups to further develop Scope 3 downstream calculation in the future. Corresponding figures are not published at present.
| 2023 | 2022 | 2021 | Base year 2019 |
|---|---|---|---|---|
| Greenhouse gas emissions, total 1) 2) 3) | 7,082 | 7,092 | 6,898 | 7,545 |
| Of which upstream greenhouse gas emissions, total 3) 4) | 6,707 | 6,599 | 6,199 | 6,559 |
| Of which greenhouse gas emissions (Scope 3.1) – purchased goods and services 3) 4) | 6,163 | 6,027 | 5,666 | 5,859 |
| Of which greenhouse gas emissions (Scope 3.3) – fuel- and energy-related emissions1) 3) | 139 | 148 | 201 | 291 |
| Of which greenhouse gas emissions (Scope 3.4) – transport and distribution (upstream) 3) 4) 5) | 374 | 394 | 309 | 378 |
| Of which greenhouse gas emissions (Scope 3.5) – waste generated in operations 1) 3) 4) | 31 | 30 | 23 | 31 |
| Of which own greenhouse gas emissions (Scope 1 + Scope 2 market-based) 1) 2) 3) | 375 | 493 | 699 | 986 |
| Of which greenhouse gas emissions (Scope 1) 1) 3) | 179 | 189 | 207 | 203 |
| Of which greenhouse gas emissions (Scope 2 market- based) 1) 2) 3) 6) | 196 | 304 | 492 | 783 |
Part of NFRA 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) People. Each of the six elements is allocated to one or more members of the Board of Managing Directors and features specific implementation measures.Part of NFR
Part of NFRThe Climate Action Plan consists of specific targets and measures to promote an emissions reduction path that is consistent with the 1.5-degree target of the Paris Agreement and achieves Climate Neutrality in the Schaeffler Group by 2040. One of the key tasks will be to incorporate additional 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 NFR
Part of NFRThe “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 levers 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 promoting active dialog with existing and future suppliers for the purchase of CO2e-reduced materials and services – for example, in the area of steel for rolling bearings.
In the reporting year, emissions values were calculated for all of the raw materials and other materials purchased, with potential for reduction identified in certain areas – all in an effort to achieve a climate-neutral supply chain by 2040 and reduce emissions by at least 25 % by 2030 in comparison with the base year 2019.
| 2023 | 2022 | 2021 | Base year 2019 |
|---|---|---|---|---|
| Of which greenhouse gas emissions (Scope 3.1) – purchased goods and services 1) 2) | 6,163 | 6,027 | 5,666 | 5,859 |
| Of which greenhouse gas emissions (Scope 3.3) – fuel- and energy-related emissions 1) 3) | 139 | 148 | 201 | 291 |
| Of which greenhouse gas emissions (Scope 3.4) – transport and distribution (upstream) 1) 2) 4) | 374 | 394 | 309 | 378 |
| Of which greenhouse gas emissions (Scope 3.5) – waste generated in operations 1) 2) | 31 | 30 | 23 | 31 |
The Scope 3 greenhouse gas emissions (GHG) of the four reported categories rose by 1.6 % to 6,707 thousand metric tons of CO2e compared to the prior year due in large part to the proportionately dominant Scope 3.1 and Scope 3.5 GHG, which increased by 2.3 % and 3.3 % respectively. Scope 3.3 GHG decreased by 6.1 % as a result of increased use of renewable energy. Route and capacity optimization and reduced airfreight led to a drop of 5.1 % in Scope 3.4.
Due to its large carbon footprint, the procurement of steel is an important topic for the Schaeffler Group in its efforts to further develop sustainability in purchasing. Green hydrogen can make the steel production process climate-neutral over the long term. Over the short to medium term, however, 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 conducted careful analysis of the primary influential factors relevant for using steel. The strategies for decarbonizing steel production are therefore evaluated on a regular basis, after which recommended courses of action for combining short, medium, and long-term measures will be developed.
The company is having discussions with suppliers to monitor and explain specific steps for reducing production-related CO2e emissions. Among other things, the suppliers with the highest emissions were encouraged to disclose environmental information through the CDP Supply Chain program. Concepts are also being developed that take into account efforts to achieve a circular economy and increase the use of green energy. In this regard, the sustainability target agreements represent an important tool for defining the way in which targets are achieved for environmental performance indicators.
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 the Swedish start-up H2 Green Steel, beginning in 2027. The first batches should be procured in 2026. In 2023, the Schaeffler Group further intensified this collaboration and increased its equity interest in H2 Green Steel to EUR 100 million. The Schaeffler Group is also working closely with other steel suppliers to develop a decarbonization strategy. In the 2023 reporting year, the first batches of the required quantities of steel were switched to the CO2e-reduced production route based on scrap and electric arc furnace. These collaborations are an important step in making the company’s supply chain climate-neutral by 2040.
Since 2023, 100 % of electricity purchased at all European, Chinese, and American plants has come from renewable sources.1 The plants in the Asia/Pacific region will follow in 2024 to meet the target of ensuring that 100 % of purchased electricity is sourced from renewable energy sources by 2024.Part of NFR
Part of NFRDecarbonizing production (Scope 1 and Scope 2) will primarily require a switch to more energy-efficient production processes as well as the use of renewable energy produced on-site and purchased. The Schaeffler Group plans to cover its demand for purchased electricity entirely with renewable energies by 2024.
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 24 % from 493 2 thousand metric tons of CO2e to 375 thousand metric tons of CO2e compared to the prior year. Specific measures were developed for all gas-heated production and infrastructure facilities, which include replacing natural gas with electricity for heating the hardening furnaces.
All of these measures were compiled according to their cost efficiency in a global Schaeffler decarbonization roadmap for 2030. In the next step, each plant’s contribution to reduce CO2e can be derived and defined from this roadmap. In the following years, the Schaeffler Group plans to continue implementing and optimizing this path of reduction.
The Schaeffler Group’s energy management is in the process of defining minimum CO2e reduction targets for all plants, with the aim of increasing energy efficiency. The plants themselves are also responsible for setting 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 the ISO 50001 standard, which achieved a coverage rate 3 of 100 % again in 2023 (prior year: 100 %).Part of NFR
Part of NFRThe foundation for decarbonizing the Schaeffler Group’s product portfolio is being developed in the “Green Products” element. To this end, in the 2023 reporting year products were grouped according to carbon footprint, and a representative product assigned to each group, thus making it possible to assess just about the entire product portfolio. As part of a pilot project, the data thus compiled were graphically prepared following initial analysis and now serve as a foundation for systematically developing roadmaps for efficient decarbonization of the product portfolio. The results reveal reduction potential, the necessary material quantities, and the underlying production measures.Part of NFR
Part of NFRIn the “Finance & IT” element, the Schaeffler Group is interested in further optimizing internal and external sustainability reporting and consistent models for sustainability data as well as developing a suitable IT infrastructure. The 2023 reporting year focused, in part, on driving the ESRS requirements as part of the new CSRD reporting as of the 2024 business year as well as assessing the definitions of relevant key figures. In addition, the existing ESG IT infrastructure was analyzed to enable migration from a variety of systems into a single system, in which the development of the necessary sustainability management models plays a central role. Most importantly, this includes further developing the methods for collecting and preparing company- and product-related emissions data in the system.Part of NFR
Part of NFRThe measures for achieving a defined emissions reduction path represent a major challenge for companies and require a high degree of employee commitment, which is why the Schaeffler Group is implementing the corresponding training and information campaigns to better familiarize all employees with sustainable behavior. Numerous ideas and suggestions were submitted during the Climate Action Days in 2022. To mark the anniversary in 2023, the company hosted regional events to present its progress in the area of Climate Neutrality as well as examples of how individual employee ideas can be implemented.
In addition, climate aspects were integrated into the company car guideline in the 2023 reporting year, so that the Schaeffler Group can further promote alternative drives in company cars.Part of NFR
Part of NFRThe Schaeffler “Climate Emission Model” is a strategic tool for integrating business and climate planning. The model simulates the Schaeffler Group’s greenhouse gas emissions up to 2030 based on the data of the last business year and strategic business planning. The model takes into account the Scopes (1, 2, and 3) monitored by the climate targets and differentiates between the sources of greenhouse gas emissions according to region and material or energy source. The Schaeffler Group can therefore compare developments in greenhouse gas emissions with the Schaeffler climate targets and, on this basis, develop detailed measures for reducing the greenhouse gas emissions associated with energy sources and materials.Part of NFR
1 In the reporting year, energy attribute certificates for green electricity were purchased for 83.5 % of all electricity consumption, with another 2.7 % purchased in January 2024. All of the energy attribute certificates used were produced in 2023.
2 The 2022 value has been adjusted.
3 Relating to plant employees.
