Schaeffler India

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 & their impact on processes & operations. Presently, we have identified key stakeholders, internal viz. employees & external namely investors, 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.

S. No.	Stakeholder Group	Whether identified as Vulnerable & Marginalised Group (Yes/No)	Channels of communication (Email, 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
1	Investors/ Shareholders	No	Annual/Quarterly results publication Annual report Investor and analyst meetings Financial follow-up reports Earnings conference call Shareholders plant visit	Annually Quarterly	Financial performance and business, ESG updates & Strategic priorities
2	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
3	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
4	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.
5	Community/ Associate partners/ NGOs	Yes	Community meetings Survey Visits Discussions	As and when required	To empower community and promote community development
6	Union/State Government	No	Annual/Quarterly reports E-mail, hard copy letters Meetings Communication through portals	Ongoing As and when required	To comply with regulations To get approvals To keep regulators informed

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 subordinate to the Board of Directors, is responsible for all the matters related to ESG along with other organisational issues. They acts as a link between Board & Stakeholders. The members of ELT updates the Board about ESG related topics. ELT is responsible to seek feedback, inputs, suggestions from the Board on ESG topics. ELT take initiative on prioritising our strategies, and action plans to address our economic, environmental, and social impacts.
Materiality Assessment is one of the ways of identifying material issues along with ESG issues in consultation of various stakeholders. This is done though circulating questionnaire among stakeholders to assess and rank the relative importance of selected ESG topics. Outcome of the assessment is plotted on the graph so as to focus ESG initiatives and building out a comprehensive strategic framework. We did this materiality assessment in year 2022. (Details on Section A, question 24 of BRSR Report)
We have different committees which takes care of matters related with different stakeholders including ESG topics & inform board about the updates. Viz; Stakeholder relationship committee (SRC), Risk Management Committee (RMC), Corporate Social Responsibility Committee, Audit Committee (AC) 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

Materiality Assessment was done in year 2022. In consultation with stakeholders, we identified 19 material issues. After taking poll, issues were prioritised & plotted on a graph. This helped us formulating time bound ESG targets, short term/long term plans and goals with a monitoring mechanism.
Reputation risk, ESG Targets vis a vis Status 2023, ESG Sustainability Roadmap – Long-term commitment with focus on short term goals, these were some of the topics that was raised in Risk management committee meeting/Board meetings. This made us more agile & vigilant towards ESG topic. We have created sustainability network in year 2023 to achieve & monitor our 8 ESG targets. We are also working progressively to have Schaeffler India esg policy.

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

We work closely with communities and civil society networks to tackle systematic issues that can acts as force multipliers 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 CSR team. Under one of such CSR initiatives on skill development, two women enterprises from rural areas has been trained and promoted on sustainable products like jute bags, River Grass products for corporate gifting. One such women enterprise is now a registered vendor with the company and has initiated supplying corporate gifting packaging material on various occasions. Through CSR initiatives, company is providing financial support, mentorship, and capacity-building programs to women social entrepreneurs. This support can help these enterprises grow and thrive, enabling them to become reliable suppliers within the company’s supply chain. By integrating these women enterprises we not only diversify our supplier base but also promoting economic empowerment and social inclusion.