Schaeffler India

PRINCIPLE 4

Businesses should respect the interests of and be responsive to all its stakeholders

Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity.

We have implemented a dynamic and strategic stakeholder engagement process, which includes following steps:

Identification: Wherein we identify key stakeholder groups from a larger universe of all possible stakeholders. Identification of stakeholder is based on their material influence on the Company’s ability to create value and vice-versa.

Prioritisation: We prioritise stakeholders based on their ability to influence company’s decision-making and their impact on processes and operations. Presently, we have identified key stakeholders, internal viz. employees & external namely investors/shareholders, customers, suppliers and partners, and communities, regulators.

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Stakeholder Group	Whether identified as Vulnerable & Marginalised Group (Yes/No)	Channels of communication (E-mail, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website, Other)	Frequency of engagement (Annually/Half yearly/Quarterly/ others – please specify)	Purpose and scope of engagement including key topics and concerns raised during such engagement
Investors/ Shareholders	No	Annual/Quarterly results publication in newspaper Annual/Quarterly results intimation via e-mail Annual report Investor and analyst meetings Financial follow-up reports Earnings conference call Shareholders plant visit Quarterly Financials highlights reporting to shareholders Newspaper Notices	Annually/Half yearly/Quarterly/ Others/Event based	Financial performance and business, ESG updates & Strategic priorities, Shareholders meetings
Customers/dealers/ distributors	No	Publications Media & digital communications Conferences and customer meets/events Personal visits Customer Surveys	As and when required	Information about products Product/Service quality and safety Delivery conditions, feedback
Employees	No	Employee surveys Idea management Internal media One-on-one meetings Conferences Trainings Workshops Publications Newsletters & reports Online portals Town hall, Open house meetings	Ongoing As and when required	To inform employees about the organisation’s updates, events To create awareness about business, including codes and values To understand employee needs and opinions, feedback
Suppliers and Vendors	No	Contracts/Agreements SOPs Guidelines Training Purchase Orders/Service orders Management meetings	As and when required	Sustainable sourcing Clear information of terms condition of supply delivery etc.
Community/ Associate partners/ NGOs	Yes	Community meetings Survey Visits Discussions	As and when required	To empower community and promote community development
Union/State Government/Local government bodies	No	Annual/Quarterly reports E-mail, hard copy letters Meetings, as and when required Communication through portals	Ongoing As and when required	To comply with regulations To get approvals To keep regulators informed
Media/Rating Agencies	No	Press Media Releases Spokesperson Interviews/media interactions E-mail Media Interactions Company Website Company Social Media Channels	As and when required	To inform and update on company activities, achievements, and developments. The engagement aims to maintain transparency, build public trust, and manage the Company’s public image. Key topics include new financial results, product launches, CSR initiatives, and strategic announcements.

Leadership Indicators

1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.

The Executive Leadership Team (ELT) subordinates to the Board of Directors, is responsible for all the matters related to economic, environmental, and social topics along with other organisational issues. They act as a link between the Board & the Stakeholders. The members of ELT update the Board about economic, environmental, and social related topics during the Board/Committee meetings. ELT is responsible to seek feedback, inputs, suggestions from the Board. ELT take initiative on prioritising our strategies, and action plans to address the issues.
Materiality Assessment is one of the ways of identifying material issues along with ESG issues in consultation with various stakeholders, which is conducted once in two years. This is done though circulating questionnaire among stakeholders to assess and rank the relative importance of selected ESG topics. Outcome of the assessment is to focus about the ESG initiatives and building a comprehensive strategic framework. Schaeffler India conducted materiality analysis in the reporting year 2022 & 2024. This year along with the financial materiality, the impact materiality was also carried out to arrive at the double materiality outcome. The requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) were used as guidance for the assessment methods, with both inside-out and outside-in perspectives analysed.
We have Board Committees which take care of matters related with different stakeholders including economic, environmental, and social topics & update the Board. Viz. Risk Management Committee, Corporate Social Responsibility Committee, Audit Committee etc.

2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes/No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity.

Yes

Schaeffler India conducted a materiality analysis in the reporting year 2024. The requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) were used as guidance for the assessment methods, with both inside-out and outside-in perspectives analysed. In consultation with stakeholders,21 material issues were identified. After taking feedback from the stakeholders, material topics were prioritised. This helped in formulating time bound ESG strategies, shortterm/ long-term plans and target settings with a monitoring mechanism.
Sustainability, ESG related risks, Reputation risk, ESG roadmap, Sustainability Targets including status for 2024 – Long-term commitment with focus on short-term goals, these were some of the topics, which were discussed in Risk Management Committee meetings/Board meetings. The above interventions make the organization agile and vigilant towards the ESG.

E.g. circular economy requirements, Schaeffler India has embarked on the journey of zero waste to landfill, thereby all the wastes are either recycled/ reprocessed/co-processed engaging with the authorised vendors.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/marginalized stakeholder groups.

Schaeffler India works closely with communities and civil society network to tackle systematic issues that can act as a force multiplier for social transformation and sustainable development. Promoting women social enterprise to bring inclusion of vulnerable groups through Corporate Social Responsibility (CSR) initiatives is a commendable approach adopted by the CSR team. One of such CSR initiatives on skill development, two women enterprises from rural areas have been trained and promoted on sustainable products like jute bags, River Grass products for corporate gifting. Through CSR initiatives, company is providing financial support, mentorship, and capacity-building programmes to women social entrepreneurs. This support can help the enterprises to grow and thrive. Integrating these women enterprises help in promoting economic empowerment and social inclusion.