Innovation

Through our discussion with Jennifer Alexander-Cormier, Human Resources Generalist, we learned about Schaeffler’s strategic climate and sustainability program implemented by Georg F.W. Schaeffler (Family Shareholder and Chairman of the Supervisory Board), Klaus Rosenfeld (Chief Executive Officer), and the various management teams of different Schaeffler locations across the globe. The strategic climate and sustainability program currently focuses on 11 of the 17 United Nations Sustainable Development Goals (SDGs). Sustainability at Schaeffler means establishing a balanced approach between economic, ecological, and social aspects. In 2019, Schaeffler established a climate program to cover the requirements and challenges of the Paris Climate Agreement. Schaeffler decided to include the entire value chain in this effort, starting with their suppliers, optimizing their operations, and designing their products to reduce their carbon footprint. In 2019, Schaeffler established a group-wide global program to identify energy efficiency measures contributing to their target of 100 GWh annual energy efficiency gains by 2024. Schaeffler has a concrete timeline to reach this target through 100% purchased power from renewable sources, with an all-time goal of being carbon-neutral by 2030. “We are focusing on other sustainability goals beyond just recycling, such as renewable energy through our contribution to the future of hybridization and electrification of vehicles (Jennifer Alexander-Cormier).” Schaeffler’s strategic climate and sustainability plan aligns with SDGs 12 and 13 (Climate Action and Responsible Consumption and Production) by prioritizing the use of renewable energy sources, energy efficiency, and carbon emission reduction.

Schaeffler acknowledges that today’s mobility sector is responsible for a large part of worldwide emissions. Schaeffler believes that as a global company, they have a responsibility and opportunity to address this issue. In doing so, Schaeffler develops highly innovative vehicle drivetrain components and systems for sustainable E-Mobility. E-Mobility involves using electric motors to improve the efficiency of fossil fuel power trains or replacing them completely. Through E-Mobility, Schaeffler can make products that are fun to drive, more powerful, and enable timely striving while reducing emissions. Schaeffler also ensures they focus on extending the lifecycle of their products and helping customers repair vehicles sustainably and efficiently. E-Mobility and extension of product lifecycles are some of the most effective means to save resources and reduce waste while also providing communities with sustainable means for mobility, aligning with SDGs 9 and 11 (Industry, Innovation, and Infrastructure as well as Sustainable Cities and Communities).

Schaeffler also works closely with their suppliers to help maximize the use of sustainable green energy sources. Schaeffler’s bearings are the main component of the wind turbine drivetrain; as such, Schaeffler’s bearing production plants contribute to the development of the wind industry and wind energy, aligning with SDG 7 (Affordable and Clean Energy).

Schaefflers' bearings are a main component of wind turbines which are used to generate renewable energy

Inspiration

Schaeffler’s inspiration for CSR innovation comes from being a socially responsible corporation that wants to demonstrate its care for the environment and the betterment of the world. Schaeffler is a corporation that’s purpose is far beyond financial goals. They acknowledge the changing global landscape and want to be actively involved in that transformation. “We see how much the world is changing and how much we are involved in that change. Based on how Schaeffler functions, participating in climate action is a great fit for our business platform while also helping to make things a little bit better for the world as well (Jennifer Alexander-Cormier).” Schaeffler’s operations provide an immense change in the world through their innovation in automotive and industrial manufacturing. Schaeffler has recognized that by centering their innovations around sustainable development goals, they can provide change in the manufacturing industry, not only for their own company but for other industry members as well. Such innovations align with the mission/vision of the company, pioneering motion.

Overall impact

Schaeffler has made noticeable impacts on the environment through all of their initiatives. “Schaeffler is contributing to 11 of the 17 goals and hopefully more in the future as we grow and develop our climate action (Jennifer Alexander-Cormier).”

Schaeffler’s goal to have 100% of the company's power sourced from renewable sources by 2024 is a great example of the overall impact Schaeffler has on the environment. "As of 2021, we have already reached 73.3%, which is a notable increase from the previous year's 68% (Jennifer Alexander-Cormier)." This steady advancement indicates a positive trajectory towards achieving the targeted 100% by the upcoming year. As Schaeffler is an extremely large manufacturing company, generating 100% of the power used for their operations from renewable sources has a tremendous impact on the environment. The company is committed to meticulously measuring its SDG impact, monitored through annual status reports. By implementing smaller milestones, Schaeffler ensures continuous progress and alignment with UN sustainability goals. Schaeffler’s ongoing effort to reduce freshwater withdrawal is another great example of their impact. They are targeting a 20% reduction by 2030, and the company has demonstrated great success in this innovation to this date. The current reduction in water withdrawal compared to previous years signifies a noteworthy stride toward meeting this sustainability objective. These are just some of the many impacts Schaeffler’s innovations have.

In the short term, a noticeable impact has emerged as employees actively engage in these initiatives, contributing to a heightened sense of corporate citizenship. “Employees are starting to care a lot more about these problems, and it spans out into more than just saving the environment (Jennifer Alexander-Cormier).”The company is dedicated to addressing local, crucial problems, and this commitment has been adopted by its employees. This collective focus has fostered a genuine concern for the environment and society, allowing the organization to align with the culture advocated by the United Way. The effects are tangible in the workplace, evident in the way individuals conduct themselves. There is an increase in the level of care exhibited toward broader societal challenges, the facility's appearance, and the overall well-being of the community. The discourse surrounding these initiatives has not only elevated awareness but also translated into observable changes in behavior and attitudes among the workforce. In the long-term, the shared commitment to SDGs within the Schaeffler Group will allow the company to collectively work toward bettering the environment and society as a whole. The impact Schaeffler has will only get larger and larger over time.

Business benefit

Schaeffler’s adherence to ISO standards and their focus on SDG goals not only reflects their commitment to quality but also serves as a valuable tool in attracting and retaining customers. The positive impact of this commitment is evident in Schaeffler’s record sales, indicating a tangible correlation between standards compliance and business success. There has also been a noticeable impact through employee involvement in these initiatives. This involvement extends beyond environmental concerns, with a growing emphasis on societal issues. This has contributed to a heightened passion towards Schaeffler’s mission and goals among the workforce.

Schaeffler’s sustainability and climate-conscious approach is fostering meaningful partnerships. Many of its partners share similar values, contributing to the development and growth of these collaborations. The increasing number of companies seeking an environmentally responsible partner has resulted in an expanding business network, with like-minded organizations becoming integral parts of the company's extended "family."

This dual benefit, enhanced business performance and the cultivation of partnerships with socially and environmentally conscious entities, is a positive development for Schaeffler. It not only strengthens their market position but also aligns with the broader goal of making a positive impact in the areas they operate in. “It is good news for us because we're benefiting in addition to helping (Jennifer Alexander-Cormier).”

Social and environmental benefit

Schaeffler implementation of sustainability measures across its entire value chain actively works towards reducing its global carbon footprint, helping to improve its environmental and societal impact.

Schaeffler's focus on developing innovative drivetrain components for sustainable E-Mobility directly addresses the serious environmental impact of the mobility sector. Another benefit to the environment is their emphasis on extending product lifecycles, which promotes responsible consumption and production, as well as sustainable industrial practices.

Schaeffler's collaboration with suppliers to maximize the use of sustainable green energy sources works toward creating clean energy, which is another amazing benefit their innovations have on the environment. Schaeffler's sustainability and climate-conscious approach has resulted in meaningful partnerships with organizations that share similar values to them. This expanded network not only enhances business performance but also supports the company's broader goal of positive societal and environmental impacts.

The company's shared commitment to SDGs within the Schaeffler Group and its partnerships with like-minded suppliers and organizations positions them for long-term positive impacts on the environment and society. As the company continues to grow and develop its climate action, the overall impact is also expected to increase.

Interview

Jennifer Alexander-Cormier, Human Resources Generalist