PRINCIPLE 5

Businesses should respect and promote human rights

Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

FY 2024 FY 2023
Total (A) No. of employees/workers covered (B) %(B/A) Total (C) No. of employees/workers covered (D) %(D/C)
Employees
Permanent 1,652 1,538 93% 1,566 1,566 100%
Other than permanent 150 113 75% 129 129 100%
Total employees 1,802 1,651 92% 1,695 1,695 100%
Workers
Permanent 1,270 1,229 97% 1,292 1,292 100%
Other than permanent 2,435 61 3% 2,237 22 1%
Total Workers 3,705 1,290 35% 3,529 1,314 37%

1In the above Snapshot we have not considered allied services like Canteen, Housekeeping, Security, Transportation, construction workers etc.

2. Details of minimum wages paid to employees and workers, in the following format:

Category FY 2024 FY 2023
Total (A) Equal to Minimum Wage More than Minimum Wage Total (D) Equal to Minimum Wage More than Minimum Wage
No. (B) %(B/A) No. (C) %(C/A) No.(E) %(E/D) No.(F) %(F/D)
Employees
Permanent 1,652 0 0% 1,652 100% 1,566 0 0% 1,566 100%
Male 1,549 0 0% 1,549 100% 1,468 0 0% 1,468 100%
Female 103 0 0% 103 100% 98 0 0% 98 100%
Other than permanent 150 0 0% 150 100% 129 0 0% 129 100%
Male 121 0 0% 121 100% 105 0 0% 105 100%
Female 24 0 0% 29 100% 24 0 0% 24 100%
Workers
Permanent 1,270 0 0% 1,270 100% 1,292 0 0% 1,292 100%
Male 1,245 0 0% 1,245 100% 1,264 0 0% 1,264 100%
Female 25 0 0% 25 100% 28 0 0% 28 100%
Other than permanent 2,435 0 0% 2,435 100% 2,237 0 0% 2,237 100%
Male 2,272 0 0% 2,272 100% 2,006 0 0% 2,006 100%
Female 163 0 0% 163 100% 231 0 0% 231 100%

1In the above Snapshot we have not considered allied services like Canteen, Housekeeping, Security, Transportation, construction workers etc.
1Figures of workers for year 2023 are restated due to change in methodology.

3. Details of remuneration/salary/wages in the following format:

a) Median remuneration/wages: (in `)

Male Female
Number Median remuneration/ salary/ wages of respective category (₹) Number Median remuneration/ salary/ wages of respective category (₹)
Board of Directors (BoD) 7 48,30,000 3 78,35,000
Key Managerial Personnel 2 2,77,27,215 1 1,62,52,404
Employees other than BoD and KMP 1,559 10,42,026 112 6,53,016
Workers 1,889 5,88,612 42 3,49,308

1 In the above Snapshot we have not considered allied services like Canteen, Housekeeping, Security, Transportation, construction workers etc.



b) Gross wages paid to females as % of total wages paid by the entity, in the following format:

FY 24 (%) FY 23 (%)
Gross wages paid to females as % of total wages 4.00% 3.40%

1In the above Snapshot we have not considered allied services like Canteen, Housekeeping, Security, Transportation, construction workers etc.

4. Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No)

Yes. Regional Compliance Officer is first point of contact for issues regarding Human Rights. E-mail id: ccomplianceindia@schaeffler.com.

In addition, anyone can send a mail with questions related to Human rights to humanrights@schaeffler.com R In case of violation of Human rights, a complaint can be filed via the Schaeffler Whistle Blowing Channel weo.india@schaeffler.com

In addition, at each plant we have Industrial Relations & Admin. Which takes care of Human rights issues at plant level. Also, at company level we have various committees which takes care of Human rights issues E.g. POSH Committee, Townhall meeting by ELT (Executive leadership team).

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.

The Schaeffler Human Rights Policy is applicable to all employees from January 1, 2024 within the Schaeffler Group. The policy defines binding instructions for all employees facilitating the respect for human rights and the prevention of human rights violations in all business activities of Schaeffler, including own organisations and the supply chain.

  • An appropriate and effective grievance management mechanism allows for the effective prevention, and remediation of adverse human rights-related impacts caused by company and business activities. Regional Compliance Officer is first point of contact for issues regarding Human Rights. complianceindia@schaeffler.com.
  • In addition, anyone can send a mail with questions related to Human rights: humanrights@schaeffler.com OR
  • Both employees and affected rights holders outside the Company have the opportunity to submit information about potential human rights violations through the Schaeffler whistleblower system.
  • Complaint can be filed by writing to Incident reporting system anonymously Via Business keeper Monitoring system (BKMS) https://www.bkms-system.net/. The system is available in over 20 languages which allows for anonymous, confidential, and specially encrypted, secure communication with the department Forensics & Investigations at Schaeffler.
  • This information can be also provided the telephone hotline numbers to report verbally at global level.
    +55 61 35507564 (Portuguese, English, German), +86 10 65997961 (Chinese, English, German)
    + 49 30 99257146 (German, English, French), +1 213 2791015 (English, Spanish, German).

6. Number of Complaints on the following made by employees and workers:

FY 2024 FY 2023
Filed during the year Pending resolution at the end of year Remarks Filed during the year Pending resolution at the end of year Remarks
Sexual Harassment 1 0 There was 1 (One) complaint pending at the beginning of the year 2024, which was resolved in July 2024. The Company received 1 (One) complaint during the year 2024, which was resolved in November 2024. 1 1 The Internal Complaints Committee (ICC) is constituted to redress complaints received regarding sexual harassment. A complaint received in 2022 was investigated in the same year, and the investigation was concluded in 2023, as required by the POSH Act.
Discrimination at workplace 0 0 0 0
Child Labour 0 0 0 0
Forced Labour/Involuntary Labour 0 0 0 0
Wages 0 0 0 0
Other human rights related issues 0 0 0 0

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format:

FY 2024 FY 2023
Total Complaints Data Needed under Sexual Harassment on of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH) 1 1
Complaints on POSH as a % of female employees/workers 0.3% 0.3%
Complaints on POSH upheld 1 1

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

There is an online tool where complainant can lodge complaint anonymously https://www.bkms-system.net/schaeffler. Complaints lodged on this platform is accessible only to Compliance department.
Also, aggrieved can file complaints to e- mail id: posh@schaeffler.com. Enquiry is conducted on accused irrespective of complainant. If complainant discloses identity voluntarily and participates in enquiry process, due care is taken by Internal Compliance Committee (includes external member) to follow confidentiality as much as possible. Till such time that enquiry is in process, complainant has option to work from other location (incl work from home). So far, there have been no such instances of adverse consequences to the complainant.

9. Do human rights requirements form part of your business agreements and contracts? (Yes/No)

Yes, respect for human rights is an indispensable part of Schaeffler India corporate responsibility and corporate culture. The Company also expects the same of its business partners. For this reason, the Schaeffler Group and thereby Schaeffler India is committed to the UN Guiding Principles on Business and Human Rights, the principles of the UN Global Compact, the general human rights declaration, the initial eight conventions of the International Labor Organization (ILO), and more.

  • We have the Supplier Code of Conduct, which is signed off with all suppliers of Schaeffler India as per Commodity Specific Requirements. This is also required for all new suppliers who are added to the Schaeffler India supplier base. Fundamental Principles of Supplier Code of Conduct include “Respect of Human rights”.
  • Additionally during new supplier selection for all Production Material category, we have specific questions related to Sustainability in the “new supplier selection questionnaire” (SIA – Supplier Initial Assessment). This questionnaire includes Human rights relevant topics. Any new supplier who is added into the supplier base have to fulfil the requirements related to Sustainability.
  • Schaeffler wants its suppliers to adhere to Sustainability Target Agreement (STA) in which sustainability aspects are defined together with business partners, and their development is monitored over the period of this Agreement.

10. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Child labour 100%
Forced/involuntary labour 100%
Sexual harassment 100%
Discrimination at workplace 100%
Wages 100%
Others – Freedom of association 100%

1Schaeffler India internal assessment done at 4 plants (assessment is done once in two years).

* Schaeffler India internal assessment done at 4 plants & corporate office.

11. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at Question 10 above.

We have not received such complaints. However, during the investigation following two areas of concern found.

  • During the investigation it was found that some employees were working beyond Permissible working hour. For tracking of excess working hour & to mitigate this issue Digital tool, Online time tracking system was developed. Which will give accurate data of time tracking.
  • Some of the premises was not having proper infrastructure facilities for physically disabled people. Hence action was initiated to basic infrastructure development plan for differently-abled persons for all the states. (refer P5 (L3) for plan details)

1 Schaeffler India internal assessment done at 4 plants (assessment is done once in two years).

Leadership Indicators

1. Details of a business process being modified/introduced as a result of addressing human rights grievances/complaints.

Schaeffler India has received 1 POSH complaint this year, which was resolved during the year immediately. Schaeffler India have taken a step ahead to make employees more agile & vigilant towards POSH issues. Action initiated to cover 100% workforce to undergo Schaeffler Human Rights Policy & Prevention of Sexual Harassment Act.

2. Details of the scope and coverage of any Human rights due-diligence conducted.

Directorate of Industrial Safety and Health carried out their audit including Human Rights & POSH related issues in 2024 and found the plant is in compliance.

Respect for human rights is an integral part of Schaeffler’s culture. In designing its human rights processes, Schaeffler follows recognised standards such as the UN Guiding Principles on Business and Human Rights and the National Action Plan for Human Rights (NAP), complies with current legislation, and incorporates stakeholder requirements Schaeffler thus creates the basis for a comprehensive company-wide human rights due diligence. Human rights due diligence conducted through circulating questionnaire & it has 100% coverage of employees of organization. These efforts are reflected in a large number of measures that encompass the Company’s own organization as well as its purchasing network and business partners. The measures are combined in a systematic management approach: the Human Rights Compliance Management System. The Human Rights Compliance Management System comprises 5 fields of action:

  • Accepting Responsibility
  • Identifying Risks
  • Introducing Effective Measures
  • Informing and Reporting
  • Facilitating Grievances

Schaeffler is committed to the respect of human rights in our own company and in our supply chain. Company strived to protect people from being exploited while doing business in a way that is both profitable and ethical

3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016?

Company recognises importance of meeting the requirements of the Rights of Persons with Disabilities Act, 2016, hence taking steps forward to fulfil those requirement. We are also in the process of making our other premises inclusive and accessible. We have initiated basic infrastructure development plan for Diff-abled persons, in all the plants. This plan includes developing following facilities for differently abled persons, includes following:

  • Signages
  • Separate Entry-Exit for punching
  • Elevator, Ramp and Handrails
  • Dedicated Parking
  • Washrooms/Restrooms are few of them

4. Details on assessment of value chain partners:

We have Self-Assessment Questionnaire (SAQ), which is applicable for overall supplier - as per group guideline & implemented in a phased manner.
It covers the Human rights related topics. Viz: Company Management, Human Rights and Working Conditions, Health and Safety, Business Ethics, Environment, Responsible Supply Chain Management and Responsible Sourcing of Raw Materials.

% of value chain partners (by value of business done with such partners) that were assessed
Sexual harassment 62%
Discrimination at workplace 62%
Child labour 62%
Forced/involuntary labour 62%
Wages 62%
Others
(Ethical recruiting, Working hours, Freedom of association and collective bargaining, Women's Rights, Diversity, equity, and inclusion, Rights of minorities and indigenous peoples, Land, forest and water rights and forced eviction, Use of private or public security forces) 		62%

Note: The assessment covering purchasing spent were evaluated using social and environmental criteria through Self-Assessment Questionnaire (SAQ).

5. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at Question 4 above.

During the year 2024, the assessment conducted basis of majority of purchase spent. These suppliers were evaluated using social and environmental criteria through Self- Assessment Questionnaire (SAQ). Low performers in SAQ are referred to RSCI audit (Responsible Supply Chain Initiative). During 2024, 2 suppliers had a low SAQ score which referred to RSCI audit and appropriate measures taken for improvement (One supplier got the RSCI Label, other is under follow-up audit). We are working closely with the suppliers on improving their sustainability rating through improvement action.