Businesses should provide goods and services in a manner that is sustainable and safe
Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

FY 2023 FY 2022 Details of improvements in environmental and social impacts
R&D1 100% (` 995 mn) 100% (` 972 mn) The ongoing investment in R&D is attributed to improving the localisation, closer to customer & efficiency which ultimately leads to sustainable products. Such products have improved impact on environment and society.
Capex2 7.7% 7.3%
  • Our investment e.g. Rail test rig and its accessories to support product development with low friction seal for wheelset would help rail customers reduce energy consumption thereby reduce carbon footprint. In that perspective about 25% of ongoing investment in R&D @ Industrial business may indirectly result positive impact to environment and social.
  • We develop products that help our customers to meet their emission targets. We have products that increases reliability there by improving the total cost of ownership of a truck or a bus operator.

1. 100% of Schaeffler India Limited’s R&D spend can be aligned to one or more principles of NGRBC

2. For capex we already have established machineries & procedures to control the environmental and social impacts of our product and processes, we do regular checks & updates which require no investment as such for time being.


2. Details on Sustainable Sourcing

a. Does the entity have procedures in place for sustainable sourcing?

Yes

  1. We have Sustainable Procurement Policy available on Schaeffler India’s website

  2. Supplier Code of Conduct signed by all Schaeffler India suppliers

  3. Self Assessment Questionnaire (SAQ) is applicable for new supplier as well as existing suppliers. It covers topics such as Company Management, Human Rights and Working Conditions, Health and Safety, Business Ethics, Environment, Responsible Supply Chain Management and Responsible Sourcing of Raw Materials etc. Supplier limitations in SAQ are referred to RSCI audit (Responsible Supply Chain Initiative)

  4. Integration of sustainability aspects in sourcing board presentations for new sourcing approvals

  5. Requirement for suppliers to adhere to Sustainability Target Agreement (STA) for continuous improvement in sustainability performance, which covers, Greenhouse Gas Emissions, Recycling, Renewable Energy, Water Consumption, Waste management, Human rights aspects (Human rights due diligence), Returnable packaging & Transportation, Energy consumption, internationally recognised standards.

  6. We are member of Responsible Minerals Initiative (RMI) and implementation of Conflict Minerals Reporting procedure to ensure ethical supply chain practices.

Sustainable Procurement Policy | Publications | Schaeffler India

b. If yes, what percentage of inputs were sourced sustainably?

Yes

It is mandatory for all suppliers of Schaeffler India Limited to declare their commitments to our sustainability requirements during registration. 89% of Schaeffer’s inputs in India are sourced through suppliers who commit to our guiding principles by providing declarations during the registration phase. We are now working closely with the suppliers on improving their sustainability rating through improvement action. Low performer in SAQ are referred to RSCI audit (Responsible Supply Chain Initiative). We are also targeting top spend suppliers with the STA (Sustainability Target Agreements) which makes the supplier mandatory for committing to sustainable manufacturing practices, energy conservation, green energy usage, waste elimination etc. thus leading to a sustainable supply chain. We are collaborating with Steel Mills to promote green steel production, bolstering our entire supply chain to achieve inline with the Schaeffler’s climate neutrality target.

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

Schaeffler has Prohibited Substance standard which applicable to all the raw material namely Steel, plastics, rubber, oil, and Lubricants including packaging material. This is the comprehensive standard encompassing all the material compliance related requirement applicable to all the Schaeffler products. This standards Not only addresses ELV compliance but also includes Compliance with respect to ROHS, REACH, POP, Asbestos free, CLP (classification, labeling and packaging) compliance, TSCA (toxic substance compliance Act), Phthalates free material. Since Schaeffler has Global presence and delivering the parts across the Globe, including, Europe, Americas, Asia pacific, China and other South African Countries, This Hazardous and prohibited substance standard ensures inclusion and incorporation of all related and updated applicable material compliance requirement considering Global and regional wise local customers’ requirement and fulfilling them diligently and demonstrating the compliance by providing the compliance reports in terms of IMDS (international Material data system) reports, ELV, ROHS,REACH,POP ASBESTOS Free compliance report as well as follow Conflict Mineral Report system.

We adhere to the three R principle: Reduce, Reuse, and Recycle. To manage our waste, we implement various efficient waste management initiatives that consider environmental impact, social effects, and commercial viability there by we contribute towards circular economy. Our E-Waste is also provided to Original equipment manufacturer and registered recycler, so as per E-Waster guide line, being end user we comply to this requirement laid down in E-Waste rule. We are also committed towards Zero waste to landfill. (For detail please refer to Page 56)

(a) Plastics (including packaging) Plastic waste generated from our manufacturing and warehousing locations are recycled through an authorised recycler.
(b) E-waste Waste generated from all locations is safely recycled through either an authorised recycler or sending back to original manufacturer
(c) Hazardous waste Waste generated from manufacturing locations is send of to authorised recyclers/co-processing, remaining waste is scientifically disposed off in an authorised landfill. We have initiated a pilot projects for Zero Waste to landfill at two of plant locations.
(d) Other waste Metal scraps from the manufacturing process are recycled either by sending them back to the suppliers or authorised recycler

Note: We are intermediaries in supply chain, where major quantum of our products is directly supplied to the OEMs. Hence the Company has no scope for reclaiming it at the end of its life cycle.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes/No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same.

Yes, it is applicable under category of Brand owner & Importer under plastic waste management rules 2016. We have processed our registration for EPR and We have submitted our application online on CPCB - EPR portal along with action plan.

Leadership Indicators

1. Has the entity conducted Life Cycle Perspective/Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)? If yes, provide details in the following format?

Besides reduction of greenhouse gas emissions in our own production and facilities, we at Schaeffler aim to reduce our climate footprint along the entire value chain. This includes assessing and reducing CO2-Emissions arising with our suppliers, as well as the footprint generated by the products during their use phase and in disposal. To this end we conduct life cycle analyses (LCA) on our products.

NIC Code Name of Product/Service % of total Turnover contributed Boundary for which the Life Cycle Perspective/ Assessment was conducted Whether conducted by independent external agency (Yes/No) Results communicated in public domain (Yes/No) If yes, provide the web-link.
28140 Ball & Roller Bearing 56% Cradle-to-gate No Methodology of LCA is followed as per group Guidelines. Results would be provided on case-to-case basis.
28140 Engine Components 14% Cradle-to-gate No
28140 Transmission System 26% Cradle-to-gate No

* Self-Assessment (SAQ) by supplier

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products/services, as identified in the Life Cycle Perspective/Assessments (LCA) or through any other means, briefly describe the same along-with action taken to mitigate the same.

LCA is carried out as per the Group Guidelines and there were no significant social & environmental concerns identified in LCA. However, Schaeffler has committed for Net Zero emissions from its operations by 2040.


Name of Product/Service Description of the risk/concern Action Taken
Nil Nil Nil

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing services (for service industry).

Indicate input material Recycled or re-used input material to total material
FY 2023 FY 2022
Packaging plastic material 15.9% 13.5%
Plastic granules 12.0% 12.0%
Castings 83.1% 83.5%
Steel 17.2% 18.6%

Note: We are intermediaries in supply chain, where major quantum of our products is directly supplied to the OEMs. Hence the Company has no scope for reclaiming it at the end of its life cycle.

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as per the following format:

FY 2023 FY 2022
Re-Used Recycled Safely Disposed Re-Used Recycled Safely Disposed
Plastics (including packaging) NA NA
E-waste
Hazardous waste
Other waste

We are intermediaries in supply chain, where major quantum of our products is directly supplied to the OEMs. Hence the Company has no scope for reclaiming it at the end of its life cycle.

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Indicate product category Reclaimed products and their packaging materials as % of total products sold in respective category
Qualitative (Name of Product) Not applicable

We are intermediaries in supply chain, where major quantum of our products is directly supplied to the OEMs. Hence the Company has no scope for reclaiming it at the end of its life cycle.