Schaeffler sets out progress with 2040 net zero push

Actions being taken to help automotive and industrial supplier Schaeffler achieve its ambition to be operating on a climate-neutral basis from 2040 have been detailed in the company’s annual Sustainability Report.

The firm’s 2040 target was announced in October and applies to its entire supply chain. Internal production, the company pledges, will be climate neutral from as early as 2030 and progress towards achieving this goal was made in the course of the reporting year.

As an example, Schaeffler says it has been purchasing all electricity for its European product locations from renewable sources since 2021. “As part of the successful energy efficiency program, a total saving of around 47 gigawatt hours will be achieved from 2022, which is approximately equivalent to the annual electricity requirement of 15,000 two person households in Germany,” said chief human resources officer Corinna Schittenhelm.

A reduction in emissions generated by preliminary products and raw materials in the delivery chain is also needed to achieve Schaeffler’s net zero goal. The firm plans to reduce these Scope 3 emissions by 25% by 2030.

A cooperation with the Swedish start-up company H2greensteel, from which the company will source near CO2-free steel based on hydrogen production in an annual quantity of 100,000 tons from 2025, is intended to support the ambition.

Schaeffler chief operating officer Andreas Schick commented: “The agreement is set for the long term and includes the delivery of strip steel. The steel, which is manufactured in Sweden, requires no fossil fuels and will reduce our annual CO2 emissions by up to 200,000 tons.” 

The company says it is also creating sustainable value with its products, by offering customers innovative solutions in areas such as electromobility, regenerative energy production, or the generation and use of hydrogen. In addition, it highlights that efforts are being stepped up to manufacture products in a climate-neutral manner as far as possible.

Only unavoidable emissions will be neutralised by means of carbon offsetting, the firm has pledged.

During the reporting year, Schaeffler once again achieved an “A-“ rating in the CDP climate rating, despite increased requirements, and improved its EcoVadis sustainability rating to a total of 75 out of 100 points.

The firm is also committed to the EU Sustainable Finance Action Plan, which stipulates that companies invest capital in sustainable activities in order to achieve existing climate and sustainability goals.

Klaus Rosenfeld, chief executive officer of Schaeffler, said: “The topic of sustainability is of strategic importance for Schaeffler. Despite the current geopolitical uncertainties, we will continue to follow this approach and will drive forward our activities in this area to achieve our goals.”

Efforts on sustainability coincided with revenue growth last year, with the firm’s financial results for 2021 showing revenue amounted to approximately €13.9 billion – up 9.7% on the results for the previous year.