Part of NFRTo implement its sustainability strategy, the company is focusing on seven Schaeffler ESG targets based on the ten action fields, which are presented in the following table.
Additional targets will be derived to cover all ten action fields in the future. The targets established thus far have been formulated in compliance with the United Nations’ 17 Sustainable Development Goals (SDGs). 1
To achieve the overarching goals of “climate-neutral production” by 2030 and “climate-neutral supply chain” by 2040, the company established two sub-targets, which have been validated by the Science Based Targets initiative (SBTi). The Schaeffler Group aims to reduce emissions resulting from input and raw materials in the supply chain by 25 % until 2030 compared to 2019. The Scope 3 upstream categories taken into account are 3.1 Purchased goods and services, 3.3 Fuel- and energy-related activities, and 3.4 Upstream transportation and distribution. For its own production (Scope 1 and Scope 2), the company plans to eliminate 90 % of climate-related production emissions by 2030 compared to 2019.
| Action field | Key indicator | Target | SDG | Target year | Base year | Status reporting year | Status base year | Chapter reference |
|---|---|---|---|---|---|---|---|---|
| Climate neutrality | Climate-neutral supply chain | Climate-neutral supply chain (Scope 3 upstream) by 2040 1) | 12, 13 | 2040 | N/A | 6,707 thous. tCO2e (Prior year: 6,599 thous. tCO2e) | N/A | Green Purchasing |
| Climate-neutral production | Climate-neutral production (Scope 1 and 2) by 2030 1) | 12, 13 | 2030 | N/A | 375 thous. tCO2e (Prior year: 493 thous. tCO2e) | N/A | Green Production | |
| Energy efficiency | 100 GWh accumulated annual efficiency gains through implementation of energy efficiency measures by 2024 | 12, 13 | 2024 | 2020 | 97.1 GWh 2) (Prior year: 64.2 GWh) 2) | 0 GWh | Green Production | |
| Renewable energy | 100 % of purchased power from renewable sources by 2024 | 7, 13 | 2024 | N/A | 87.6 % 3) (Prior year: 76.5 %) | N/A | Green Purchasing | |
| Resource efficiency and environmental protection | Freshwater withdrawal | 20 % reduction of freshwater withdrawal by 2030 | 6 | 2030 | 2019 | 5,035 thous. m³ (Prior year: 5,501 thous. m³) | 5,784 Thous. m3 | Water management |
| Occupational health and safety | Employee safety | 10 % average annual reduction of accident rate (LTIR) by 2024 | 3 | 2024 | 2018 | 2.7 4) (Prior year: 3.0) | 6.2 (LTIR) | Occupational safety standards |
| Diversity, employees, & people development | Diversity in top management | Increase in the share of women in top management to 20 % by 2025 | 5 | 2025 | N/A | 16.0 % (Prior year: 15.0 %) | N/A | Diversity and equal opportunity |
The targeted greenhouse gas emissions submitted for target validation were 1,043 thousand metric tons of CO2e for Scope 1 and Scope 2 (market-based) and 6,138 thousand metric tons of CO2e for Scope 3 for the base year of 2019. These values were determined in accordance with the required methods of the Science Based Targets initiative (SBTi) when targets were submitted for validation. With adjusted methods that differ from those of the target validation year, the values for the base year of 2019 were updated in the reporting year. They were 986 thousand metric tons of CO2e for Scope 1 and Scope 2 (market-based) and 6,528 thousand metric tons of CO2e for Scope 3.
The SBTi has validated these targets as compliant with the criteria and recommendations of the SBTi and thus in line with the latest climate science for fulfilling the Paris Agreement. The STBi is a joint initiative of the global non-profit environmental organizations CDP, United Nations Global Compact, World Resources Institute (WRI), and World Wide Fund for Nature (WWF). The initiative was launched in 2015 to support companies define emissions reduction targets based on climate science and the targets of the Paris Agreement.
The company has also defined another target that combines the topics of decarbonization and energy security. The target stipulates that 10 % of the electricity demand worldwide be covered by self-generated renewable energy by 2025 and a total of 25 % by 2030.
Through its “Sustainability & Engagement” subprogram, the Schaeffler Group invests in measures that, for example, promote its 2030 and 2040 climate targets. Measures include the purchase of low-emission materials and services, energy efficiency measures, a fuel switch, and expansion of renewable energies. The latter is reflected in the EU Taxonomy reporting, in CapEx-relevant activity 7.6. The Schaeffler Group will continue to invest in decarbonization measures such as photovoltaic systems and energy-optimized production processes in the future.Part of NFR
Part of NFRSelected targets are incorporated into the remuneration system for Managing Directors, the top management, and employees to further incentivize the achievement of the ESG targets set by the company. ESG targets are reflected in the Short-Term Bonus (STB) and the Long-Term Bonus (LTB) of all eligible employee groups.
Non-financial targets (especially ESG targets) have a defined total weighting of 20 % in the STB. ESG targets for the STB are defined annually on the basis of the Schaeffler ESG targets, ensuring that remuneration reflects different ESG dimensions while also sustaining sufficient continuity in remuneration-relevant targets.
A Climate Neutrality-related target has been incorporated into the LTB with a weighting of 25 %. One or more targets are defined for every LTB tranche and contribute to achieving Climate Neutrality in the Schaeffler Group by 2040.
In the first step, the Supervisory Board defines remuneration targets for the Board of Managing Directors, which then passes these targets on to other management levels and employees in the Schaeffler Group.
The following Schaeffler ESG targets were defined for the STB 2023:
For the 2023 fiscal year, Board of Managing Directors of Schaeffler AG defined a special energy efficiency target for the STB of the management below the Board of Managing Directors as well as for employees. This target is based on the Schaeffler Group’s ESG strategy and takes into account the growing importance of energy savings in the company’s business success. It is based on the implementation of energy efficiency measures in 2020, 2021, and 2022, which achieved a cumulative annual energy savings potential of 64.2 GWh.
In the reporting year, a target to reduce the Scope 1 and Scope 2 emissions by 2025 was set for the LTB. Scope 1 refers to the Schaeffler Group’s direct emissions resulting from fuel combustion (defined as natural gas, heating oil, propane, and methanol as primary emission sources) in stationary systems. Scope 2 refers to the Schaeffler Group’s indirect emissions resulting from the consumption of electricity and district heating.Part of NFR
1 Source: UN Global Compact.
2 Measurement of Lost Time Injury Rate, LTIR = occupational accidents from one lost day per 1 million hours worked. Employees, including temporary staff, trainees in apprenticeship, and interns.
