PRINCIPLE 2 
PRINCIPLE 2
PRINCIPLE 2
Businesses should provide goods and services in a manner that is sustainable and safe
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 2024 | FY 2023 | Details of improvements in environmental and social impacts | |
|---|---|---|---|
| R&D | 100% | 100% | 1. We continue to strive towards improving performance and developing efficient solutions to support customers in meeting their sustainability targets. 2. On one hand, our efforts continue towards localisation of the products and at the same time, investments for improving testing capabilities and competency enhancements aiming for localisation in all aspects marks another step towards sustainability. 3. Because of a diversified product portfolio, other than conventional product enhancements, our new product development and testing capability enhancement for future mobility products for Hybrids and BEVs have also commenced during 2024. |
| Capex | 6.3% | 7.4% |
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
Sustainability is an integral part of Schaeffler’s DNA. This includes identifying, managing, and optimising the ecological, social, and economic effects in the supplier network. Modern technologies require raw materials, which frequently come from critical regions of the world. Climate change and the increasing scarcity of resources are also affecting our supply chains. In this context, we have made it a key objective to achieve climate neutrality in our supply chains by 2040. We intensify business relationships with our suppliers in order to further develop sustainable practices in their own organization and promote collaboration.
We have Sustainable Procurement Policy available on Schaeffler India’s website.
Supplier Code of Conduct signed by all Schaeffler India suppliers.
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).
Sustainability aspects are included in sourcing approval.
Sustainability Target Agreement (STA) for continuous improvement in sustainability performance with selected production material suppliers as per group guideline/ targets - every year. STA covers, Greenhouse Gas Emissions, Renewable Energy, Waste management, Human rights aspects (Human rights due diligence), Returnable packaging etc.
Through our SAQs (Self assessment questionnaire) we ensure that our Business Partners identify the presence and source of minerals by using the Responsible Minerals Initiatives (RMI) reporting templates viz: Conflict Minerals Reporting Template (CMRT), Extended Minerals Reporting Template (EMRT) and Pilot Reporting Template (PRT). Sustainability | Schaeffler India
b) If yes, what percentage of inputs were sourced sustainably?
Yes
It is mandatory for all suppliers of Schaeffler India to declare their commitments to our sustainability requirements during onboarding as per qualification requirements. More than 60% of Schaeffler’s inputs are sourced through sustainable sourcing.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for
Schaeffler India has a
Prohibited Substance standard which is 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 the 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 delivers 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 region 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.
Additionally, Schaeffler India has established a structured process to monitor any
new legal regulations issued by the Indian government or other relevant authorities
or by the
customer. This multilayered evaluation allows for thorough review and ensures
proactive measures are taken if any regulations apply to Schaeffler India products
from current and
future businesses.
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-Waste guideline, 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 60)
| (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 an authorised recycler or sent back to original manufacturer. |
| (c) | Hazardous waste | Waste generated from manufacturing locations is sent to authorised recyclers or for co-processing, remaining waste is scientifically disposed off in an authorised landfill. We have initiated a pilot project for Zero Waste to landfill at two of our 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: Schaeffler India Limited supplies its products to OEM companies, which use these intermediary products in their final product which will be sold to consumer. So, for Schaeffler India Limited consumers are these OEM companies i.e customers and has limited scope to directly reach to consumer.
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.
Schaeffler India is registered under importer category.
Schaeffler India has applied for registration under brand owner category along with
the action plan.
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 India 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 | LCA carried out centrally at group level |
| 28140 | Engine Components | 15% | Cradle-to-gate | No | |
| 28140 | Transmission System | 28% | Cradle-to-gate | No |
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 2024 | FY 2023 | |
| Packaging plastic material | 12.1% | 15.9% |
| Plastic granules | 19.9% | 12.0% |
| Castings | 85.0% | 83.1% |
| Steel | 13.6% | 17.2% |
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 2024 | FY 2023 | ||||||
|---|---|---|---|---|---|---|---|
| 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 lifecycle.
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 |
|---|---|
| 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 lifecycle.