Environmental Statement

Transcription

1 Environmental Statement Report Environmental Protection and Safety Location Schaeffler Suzhou 2015

2 Contents 2 Contents ENVIRONMENTAL PROTECTION SUZHOU 2015 General Part Foreword 3 A Message from the Partners 3 Foreword by the CEO 5 Schaeffler AG 6 Our Divisions 6 Success Factors 8 Our Brands 8 Code of Conduct for Responsible Company Management 10 Global Environmental Protection 12 Schaeffler Environmental Protection and Occupational Safety Policy 13 Environmental Communication EcoGlobe Awarded to Maria-Elisabeth Schaeffler 15 Environmentally Friendly Products 16 Social Responsibility 17 Location Part Location 18 Introducing the location in Suzhou 18 Environmental Impacts 19 Direct Environmental Impacts 19 Indirect Environmental Impacts 22 Health and Safety 23 Risk Management 23 Health and Safety 24 Social responsibility 24 Environmental Indicators 25 Key Indicators according EMAS III 26 Input 28 Output 29 Goals and Programs 30 New Goal 31 Validation and responsibilities 32

3 3 Foreword A Message from the Partners Ladies and Gentleman, with its INA, LuK and FAG brands, Schaeffler is a global technology leader in the automotive supplier industry for all renowned manufacturers as well as for customers from many other industrial sectors. Georg F. W. Schaeffler Maria-Elisabeth Schaeffler A successful family-owned company, Schaeffler s thinking and actions have a long-term orientation and thus focus on durable success taking all aspects of global activities into account. Schaeffler has set long-term ambitious goals with regard to innovative power, product quality, process quality and delivery reliability as well as a growth trend that secures large investments for successful innovations. At the same time, we have traditionally placed great emphasis on combining economic success with responsible actions for our customers as well as the environment and our employees. Worldwide compliance with the code of conduct for responsible and fair business and company management are part of our company principles and goals, as are environmental protection and occupational safety. Schaeffler incorporates environmental protection in all processes: from development to purchasing to manufacturing to disposal. Energy, water and materials are used sparingly and carefully. Waste is avoided by returning materials to the production cycle whenever possible or by recycling them. An essential tradition of our family-owned company is to place great importance on the responsibility we have for our employees, who guarantee the success of our company. Global compliance with high standards as well

4 Foreword 4 as recurring workstation analyses ensure the highest possible level of workplace safety for all employees. We are convinced that against the background of our global responsibility working, integrated environmental protection and occupational safety management represents an important contribution to our company s sustainability. Our responsibility also includes providing innovative products to handle key problems of the future as well as developing and offering solutions that help reduce pollutant emissions in automobiles and increase the energy efficiency of vehicles and machines. This report on environmental protection and occupational safety documents the fact that Schaeffler successfully combines efficiency and environmental compatibility with the integration of social factors both inside and outside of the company. Maria-Elisabeth Schaeffler Georg F. W. Schaeffler

5 5 Foreword Foreword by the CEO We believe that there is only one environment and that this environment is global... Schaeffler unites its three great well-known brands INA, FAG and LuK under one roof. With more than 82,000 employees at over 180 locations worldwide we manufacture components and systems for the automotive industry and sixty other industrial sectors. Our commitment to active environmental protection and occupational safety has been firmly established in our company s management principles from the very beginning. One of the first of these principles states, Exemplary actions based on clearly defined ethical values determine our success. It goes on to say: We assume responsibility for our environment. Meeting this requirement means recognizing risks, analyzing and evaluating facts and making the right decisions for a particular situation. We established a group-wide environmental protection and occupational safety policy years ago to serve as guidelines for our actions. These guidelines are evaluated regularly and basic ideas are adjusted to match ever changing requirements. What is special about our environmental protection and occupational safety management system compared to many other companies is its worldwide implementation at the same high standard. We do not make a distinction between our plants in Germany, other countries in Europe, the United States, Asia or other manufacturing sites. We believe that there is only one environment and that this environment is global and worth protecting everywhere. The same applies when it comes to evaluating our employees workplace environment. Here, we make no compromises in maintaining high standards, true to our conviction that safety must have top priority worldwide. We began more than ten years ago to validate all plants to EMAS environmental protection regulations and to have them certified to ISO In 2010, we reached this ambitious goal for all of our 80 production sites worldwide. Our commitment to environmental protection has gained recognition by our customers as well as political leaders. We have received the Ford Motor Company s World Award for Environmental Leadership Worldwide multiple times. Receiving the Environmental Medal of the State of Bavaria, The European EMAS Award as well as the EcoGlobe in 2010 and 2011 serve as both a confirmation for our policy and a motivation to continue on our course. President and CEO Schaeffler AG

6 Company Portrait 6 Schaeffler AG Schaeffler with its INA, LuK and FAG product brands develops and manufactures precision products for everything that moves in machines, equipment, vehicles and in aviation and aerospace. Schaeffler is one of the world s leading rolling bearing manufacturers and a renowned supplier to the automotive industry. In 2014, this globally active group of companies, which is head quartered in Herzogenaurach, Germany, generated sales of around 12.1 billion Euros. With over 82,000 employees, Schaeffler is one of Germany s and Europe s largest family-owned industrial companies. comfort, safety and fun. Our customers worldwide include all renowned automobile manufacturers and suppliers. Our Automotive Aftermarket provides replacement parts in OE quality as well as comprehensive services to distributors and independent repair shops around the globe. It helps promote qualifications and expertise in brands and products and provides marketing support. With 180 locations in over 50 countries, Schaeffler has a global network of manufacturing sites, research and development facilities, distributors, engineering offices and training centers. Customer proximity is important for developing market-specific products and fast service. All Schaeffler plants worldwide work according to the most stringent quality and environmental standards, and these plants have been certified to international standards. Through its Code of Conduct Schaeffler has committed itself to maintaining high social and ethical standards. CO 2ncept-10 % vehicle Study on reduction in fuel consumption and in CO 2 emissions: ten percent less CO 2 through consistent optimization of tried and tested technology Our Divisions Automotive The automotive industry is our main group of customers and represents 60 percent of sales. For this industry, Schaeffler is a recognized development partner with systems expertise for the entire power train i.e. engine, transmission, chassis and accessory drives in passenger cars and commercial vehicles. Schaeffler offers a wide range of products that ranges from energy-efficient solutions for classic powertrains with internal combustion engines to products for hybrid vehicles to Components for electromobility. Precision products made by INA, LuK and FAG help vehicles use less energy and emit fewer emissions without reducing driving

7 7 Company Portrait Industrial Through its global organization and application support teams close to the market, our Industrial Division supplies rolling and sliding bearing solutions, linear and direct drive technology in the INA and FAG brands for around 60 industrial sectors. Its products include more than 225,000 items, ranging from miniature bearings only a few millimeters in size, such as those used in dental drills, to large-size bearings with an outside diameter of several meters for wind turbines. The Industrial Division s renowned Aviation and Aerospace group designs highprecision bearings for airplanes, helicopters and rocket engines such as the ones used in the Airbus A 380 and Boeing s 787 Dreamliner. Special applications with high-precision bearings, e. g. in medical engineering, complete our product range. Schaeffler s Industrial Aftermarket (IAM) handles the replacement parts and service business for end customers and distributors. IAM is a strong partner and offers its customers innovative products and services that significantly improve the service life and performance of production facilities. In addition to a comprehensive range of rolling bearing products, the IAM portfolio ranges from mechanical assembly tools to intelligent online monitoring systems, from service training courses to fully customized maintenance solutions.

8 Company Portrait 8 Success Factors Besides being close to the customer anywhere in the world, our strong employee focus and having sustainable management, other important success factors include innovative power and creativity. Around 6,000 employees develop new products, technologies, processes and methods at 40 R&D locations to provide market-oriented solutions. With more than 1,800 patent applications and over 18,000 patents and patent applications currently in effect, Schaeffler is one of the innovation leaders in manufacturing. Our primary development locations in Germany are in Herzogenaurach, Schweinfurt and Bühl, all of which are linked to other development centers in Europe, Asia and North and South America. Growth through key trends Foresight as well as long-term thinking and actions are what characterize our company. Schaeffler identifies key trends at an early stage, invests in the research and development of new, future-oriented products, defines new technology standards and prepares these standards for volume production. In the areas of efficiency increase and CO 2 reduction, renewable energies, mechatronics and e-mobility, Schaeffler offers a wide range of innovative products such as rolling bearings with optimized friction and performance, electromechanical components, rolling bearings with integrated functions and direct drives. Our Brands INA Founded in 1946 by brothers and Ph.D. holders Wilhelm Schaeffler and Georg Schaeffler in Herzogenaurach, this brand has become a global player as a rolling bearing manufacturer and automotive supplier. The INA brand primarily includes rolling bearings, linear systems and engine components. The success of this company with headquarters in Herzogenaurach began in 1949 when Georg Schaeffler developed the needle roller and cage assembly an ingenious invention that helped needle roller bearings achieve their international breakthrough. In 1952, an INA-made needle roller bearing replaced the previously used plain bearings in VW Beetle transmissions and represented the beginning of an automotive career. Today, there are hardly any passenger cars without INA engine and transmission components. Cam phasers and hydraulic bucket tappets ensure higher performance, reduced consumption, fewer emissions and more driving comfort in modern engines. The highly varied activities of the Automotive and Industrial Divisions with regard to electric mobility are concentrated in our E-Mobility System House. Our wide range of products already offers a multitude of solutions, ranging from sensor bottom brackets for electric bikes to start-stop systems and hybrid clutches all the way down to electric drives. The Schaeffler Headquarters in Herzogenaurach, Germany The high quality and reliability of its rolling bearings, engine components and linear technology products have made Schaeffler a soughtafter and reliable partner for numerous industrial customers.

9 9 Company Portrait LuK In the Schaeffler Group, LuK is the company that focuses exclusively on the automotive industry. LuK was cofounded by the Schaeffler brothers in Bühl in 1965 and immediately took the technological lead in the market with its first innovative product, a diaphragm spring clutch. The LuK Group has been fully owned by Schaeffler since A number of groundbreaking products followed, such as the selfadjusting clutch for dualmass flywheels and the dry dual clutch. Innovation and technological leadership are important company pillars. Today, one out of four cars world-wide has a LuK clutch. The FAG Headquarters in Schweinfurt, Germany LuK works closely with its customers to find solutions for tomorrow s automotive world. Examples include dual clutch transmissions and components for continuously variable transmissions, products that provide added safety and comfort and fewer emissions. FAG The FAG brand and the rolling bearing industry are inseparably linked. In 1883 Friedrich Fischer designed a ball mill in Schweinfurt that allowed him for the first time to produce high-precision steel balls in large quantities by machine. This invention is generally considered the historical beginning of the rolling bearing industry, which started its triumphant road to success in Schweinfurt. Ever since, FAG (Fischer Aktiengesellschaft) rolling bearings a registered trademark since 1905 have been synonymous with firstclass products and expertise. Since its acquisition by INA-Holding Schaeffler KG in 2001, FAG has been an important part of the Schaeffler Group. Whether it is highprecision bearings for aviation and aerospace, sensor wheel bearings in passenger cars or large bearings with an outside diameter of more than four meters for wind turbines, FAG products are the first choice for all aviation and aerospace, manufacturing and automotive customers. FAG s range of products and services is the perfect complement for the INA brand. The Luk Headquarters in Bühl, Germany

10 Company Portrait 10 Code of Conduct for Responsible Company Management Schaeffler is continuing the social responsibility of all of its companies and regards this as an essential requirement for continued corporate success. The Schaeffler Code of Conduct is based on the principles of the Global Compact, The Global Sullivan Principles of Corporate Social Responsibility and the standards of Social Accountability International. The basic principles described here constitute a minimum standard for us and do not affect countryspecific additions that are based on the relevant cultural circumstances. origin, handicap, or sexual orientation. Employees deserve each other s respect. Compensation and Working Hours We recognize workers needs for adequate remuneration and observe the legally guaranteed minimum wages in the respective labor market. We observe the rules that apply to working hours in all of our operations. Relationship with Employees and Employee Representatives We respect our employees voluntary freedom of association. Independent of this, we also enable our employees to express their interests directly to management on a continual basis. Work-Life Balance We are a family-owned enterprise. With our family-friendly arrangements and provisions we strive to enhance the satisfaction and motivation of our employees and hence increase the performance of the Group. Health and Safety We mean to provide a safe and healthy working environment that meets or exceeds applicable standards for occupational health and safety. We will take steps to prevent injuries and occupational illnesses caused by workplace conditions. Human Rights We undertake to observe the internationally proclaimed human rights in our sphere of influence. Forced Labor We will not engage in or associate ourselves with any form of forced labor. Child Labor We will not engage in or associate ourselves with child labor in our operations. Discrimination and Respect of Others We mean to provide a workplace free of discrimination and harassment on the basis of gender, race, skin color, religious beliefs, age, national Workforce Development We see the development of our employees as an essential investment in the future of our company. We also value the development of social and technical expertise. Environmental Responsibility We maintain an environmental management system at all production sites worldwide and continuously improve on this system. The minimum requirement is that local environmental protection laws and the specifications of the Schaeffler Group s environmental protection system be observed. We collaborate with our business partners and suppliers in meeting our environmental responsibilities.

11 11 Company Portrait Conflict of Interests, Gifts and Attempted Bribery We will not accept gifts or payments or hold (company) investments which could lead to a conflict of interests. In particular, neither bribes nor any other illegal payments may be offered, made or accepted. Suppliers We encourage, where practicable, our suppliers to introduce and implement similar principles of social responsibility within their companies. Responsibility We believe each of our employees has an individual responsibility to follow this Code of Conduct and encourage coworkers to abide by it as well. Management is responsible for enforcing principles that become part of our rules or policies.

12 Global Environmental Protection 12 Global Environmental Protection Over the past decade, Schaeffler has successively established an environmental management system that we can be proud of. All manufacturing sites have been certified to ISO and also to the more stringent European Eco-Management and Audit Scheme (EMAS). The Group s non-european locations, e.g. in the United States, Brazil, China, India and Korea, have also successfully passed inspection based on EMAS. The certificates and environmental statements as well as the Schaeffler environmental policy are available on the Internet. With the validation and certification of its manufacturing sites, Schaeffler has been leading the way in environmental protection. The company has received several awards for this commitment, including the Bavarian Environmental Medal and has been awarded Ford Motor Company s Recognition of Achievement, Environmental Leadership award three times. Schaeffler s commitment to environmental protection was recognized on a global scale when the company was presented with the EMAS Award in All of Schaeffler s manufacturing sites have an environmental protection coordinator. At each location, the plant manager is responsible for ensuring environmental compliance. The Competence Center for Safety and Environmental Protection and its competence groups both plan and coordinate the strategic orientation of the management system and provide support on environmental protection issues to all Schaeffler Group locations worldwide.

13 13 Global Environmental Protection Schaeffler Environmental Protection and Occupational Safety Policy Occupational safety and environmental protection are part of our management principles. We create and maintain a safe working environment that promotes the health and performance of our employees and embrace environmental responsibility to secure our company s continued existence and success. The following principles apply to all Group locations worldwide. We are firmly committed to our employees, to society and to future generations. Efficient Occupational Safety and Environmental Management We embrace and continuously improve our occupational safety and environmental protection system. We develop forward-looking strategies and work with our business partners to implement these strategies. We perform regular checks to determine how well our specifications have been implemented and how successful our management system is in all divisions. Minimal Environmental Impact and Environmentally Friendly Products We take every effort to prevent environmental impacts in all of our activities. This includes our efforts to generate as little waste, wastewater, noise and other emissions as possible. We use resources and energy sparingly. We produce environmentally friendly products by taking into consideration a product s entire lifecycle. Responsible Employees We regularly provide information and training to our employees and business partners to ensure they have the skills and expertise necessary to carry out their work safely and to minimize environmental impacts in all company departments. A Safe and Employee-Friendly Workplace We believe that all work-related injuries and illnesses can be prevented. Highly motivated employees and executives support our efforts to provide a zero-accident workplace. We give equal consideration to the protection of our employees and contractors. That is why we base the design of new workstations and work processes on the latest scientific findings and place great importance on the ergonomic design of workstations. Reliable Actions We are committed to complying with all legislation and specifications regarding occupational safety and environmental protection. We act responsibly in accordance with our own regulations, which often go above and beyond applicable laws. We plan, purchase, operate and maintain our machines and facilities using a strategy that helps prevent potential hazards and minimize risks and business disruptions. Our actions and decisions are based on state-ofthe-art technology. Preventive Measures We take comprehensive measures to protect our employees from health hazards and prevent damage to the environment. Comprehensive and effective emergency measures are in place at all locations to ensure that our employees and visitors receive adequate care in the event of injury. Open Communication We conduct an intensive and trusted dialog with interested parties. We provide information about our occupational safety and environmental protection measures as well as the impact each of our locations has on the environment. President and CEO Schaeffler AG

14 Global Environmental Protection 14 Environmental Communication The company s intranet provides comprehensive information: contact persons, databases, a waste guide and much more. This information is made available to all employees worldwide. Company newsletters and notices are also used to inform employees. Regular Conferences Environmental protection conferences held every year allow participants to exchange information and coordinate goals and actions. These conferences last several days and are attended by the environmental protection coordinators from all locations. Since environmental protection conferences were first introduced, cooperation and coordination (e. g. for planning environmentally relevant facilities) between all locations have improved tremendously. Global Regulations: Plant Standards and Procedures All actions relevant for the environment, such as the approval of indirect materials or the specification of substances prohibited for use in products and packaging, are regulated globally by special plant standards. In this way, Schaeffler ensures that hazardous materials are used only if there are no other alternatives. Safety rules and regulations also apply to contractors working in Schaeffler plants. A document detailing all safety-related requirements has been prepared for contractors working on the plant premises. Contractors may not enter the premises to perform their work unless they have agreed in writing to comply with these requirements. Regular Internal and External Audits The level and progress of the company s environmental protection are also monitored by regular internal audits at all manufacturing sites as well as external audits by an independent environmental verifier. These audits are planned and coordinated at company headquarters and carried out by the Schaeffler auditor pool. All locations receive an audit report that includes details of the current status and recommendations for improvement. Due dates and responsibilities are defined for all relevant measures. The relevant departments are informed in a timely manner about the use of such materials, and the required action is taken. This means that our customers can be sure that products supplied by Schaeffler contain only approved materials.

15 15 Global Environmental Protection 2011 EcoGlobe Awarded to Maria-Elisabeth Schaeffler Maria-Elisabeth Schaeffler receives 2011 EcoGlobe Person of the Year Award The EcoGlobe Institute of the University of Duisberg-Essen has awarded the 2011 EcoGlobe Person of the Year Award to Maria-Elisabeth Schaeffler. The prize was awarded in honor of Mrs. Schaeffler s entrepreneurial achievements and cultural and social commitment as a company partner, Vice Chairperson of the Schaeffler AG Supervisory Board as well as a member of the Supervisory Board at Continental AG. Minister Norbert Röttgen, it is sponsored by DEVK Versicherungen and ACV Automobil-Club Verkehr in cooperation with the EcoGlobe Institute Duisburg-Essen and awarded by an independent blue-ribbon committee consisting of experts from the fields of science, politics, business and culture. Her keen sense of what is good for the company s employees and with great selfdiscipline, has allowed Maria-Elisabeth Schaeffler to build a business that has a highly remarkable cor-porate culture and great economic success, the selection committee said in its statement. The strategic principles to which Maria-Elisabeth Schaeffler has oriented the company are characterized by high social, environmental and quality standards. She has molded the group into a modern, global and successful family-owned business and given it a very sound strategic direction. The committee especially stressed Schaeffler s activities in the fields of sustainability technologies, including the optimization of tracking systems for solar plants, the development of wave energy converters for the utilization of ocean power and drivetrain solutions for wind turbines as well as the company s dedication to electric mobility and its contribution to reducing fuel consumption in internal combustion engines. At the awards ceremony Maria-Elisabeth Schaeffler said, It is my great pleasure to accept the EcoGlobe Person of the Year Award. I regard it not only as recognition of what I have done in the 15 years since my husband passed away, but also a confirmation and appreciation of Schaeffler s great technological achievements. The EcoGlobe, initiated in 2007, is the mobility industry s first international environmental award. Under the patronage of Environmental Professor Ferdinand Dudenhöffer presents Maria-Elisabeth Schaeffler with the 2011 EcoGlobe Award

16 Environmentally Friendly Products 16 Environmentally Friendly Products Environmental pollution and the depletion of resources can largely be attributed to the increased consumption of products. We must change our way of thinking and insist on environmentally friendly products that use fewer resources and minimize the strain on the environment. Our Integrated Product Policy (IPP) addresses this idea and aims to promote environmentally friendly products. Schaeffler Always One Step Ahead This isn t a new idea for Schaeffler; we have embraced this idea for many years. We accepted the challenge to design environmentally friendly products a long time ago. What is new is the methods and tools used to achieve this goal. How can we utilize previously untapped potential to improve the ecobalance of a product over its entire lifecycle? New Inroads One way to make environmentally friendly products is to increase the efficiency of the material and energy used, thus reducing environmental impacts. We continuously evaluate and design all material and energy flows, from the time they enter the company to the time they leave as products or residual materials. Comprehensive Data Management The company s own environmental data coordinator handles inputs and outputs of material and energy flows for all processes and products at the respective plant. Material flow analyses help further integrate environmental management into the company s corporate units, such as Logistics, Manufacturing and Financial Controlling. Existing processes and technologies are ques-tioned thoroughly, and additional opportunities for improving processes are recognized and put into practice. Information Networks Environmental impacts occur even when resources are extracted. To make products even more environmentally friendly, Schaeffler stays in close contact with its suppliers and customers. A shared network is used to record and analyze environmental information along the entire product chain. The insights gained allow new solutions to be recognized for environmentally friendly products and sustainable development. Recycling We try to ensure that manufactured components are recycled at the end of a vehicle s service life. This is why LuK and INA are founding members of the Partslife recycling system.

17 17 Social Responsibility Social Responsibility Environmental experts around the world agree that the global environmental problems of our time can only be solved if both economic and social factors are considered. On the one hand, only economically healthy companies pursue long-term environmental protection activities, and from a social standpoint people who are starving or suffering social injustice cannot be motivated to become active in protecting the environment. The principle of sustainable development is based on these assumptions. In line with the company philosophy of accepting new challenges, Schaeffler has tackled the concept of sustainability. Generally, sustainability is not seen as an additional job to be completed but as an idea that offers new opportunities since it links problems that were previously treated separately. A view that integrates economic, ecological and social issues allows new solutions to be found and thus contributes to the sustainability of a company and of society as a whole. Although a lot has been said about sustainability and social responsibility, not a great deal has been done. The examples below show that things are different at Schaeffler: Health as a Social Factor Preventive occupational health and safety represents an essential social component at Schaeffler. We confront this responsibility by implementing numerous measures and projects. Preventive medical check-ups, workstation inspections and medical workplace consultations, reintegration support after long illnesses and fast medical help in emergencies are only some of the many services our Medical Services team provides. We also offer a wide range of company sports groups. Apprenticeships and Professional Training for Future Needs With around 3,000 apprentices worldwide and high-quality vocational training, Schaeffler has a role model function. Schaeffler employees can make use of a comprehensive range of continuing professional training courses to keep their skill sets up to date or for their personal development. Retirees are Still Part of It All Even after our employees retire, they have a number of opportunities to stay in touch with their company. Social security, justice and consideration, training and company pension plans aren t just empty phrases. The Group does its part to benefit society, putting it on the right track in its efforts to achieve sustainability. Social security, justice and consideration, health protection, educational opportunities and company pension schemes are not just hollow phrases at Schaeffler. Our company expresses its solidarity with society, putting us on the right track to sustainability.

18 Location 18 Introducing the location in Suzhou Schaeffler Friction Products (Suzhou) Co., Ltd. established in 1997 by the name as Raybestos Friction Products (Suzhou) Co., Ltd.. It joined Schaeffler and became the wholly-owned company invested by German Schaeffler Group in China in the end of It was located at No. 65 Xiangyang road before year 2012 and now are located at No. 36 Daoan road in Suzhou New District and has the ground area of 33,333 m 2 and the building area of 20,000 m 2. Currently, there are 380 employees working in the company. The main product of Suzhou plant is the clutch friction plate. All types of the products are sold to over 40 countries and regions. With product categories ranging from those for small cars to heavy truck, the company has an annual output of 20 million pieces of friction plates for supporting 10 million automobiles of well-known brands such as Volkswagen, BMW, Audi and so on. Schaeffler friction products became the premier brand in China and the global second largest manufacturer of friction products by developing for more than 10 years. The production processes are twisting, impregnation, winding, hot pressing, hardening, grinding, drilling, stamping, dipping, inspection and packing. We have high standards on product s quality and strict requirement on environmental protection and successfully achieved ISO 9001, VDA 6.1, ISO 14001, OHSAS 18001, EMAS and TS certification. Production processes including input & output Raw material & Energy input Process Waste output Cotton yarn Copper wire Glass fiber Electricity Twisting Waste raw material, CO 2 Toluene or acetone Rubber Resin Steam Electricity Nitrogen Impregnation Toluene gas, CO 2 Electricity Compressed air Winding Waste yarn, CO 2 Electricity Compressed air Hot pressing SO 2, H 2S, NO x, TVOC, CO 2 Electricity Hardening SO 2, H 2S, NO x, TVOC, CO 2 Electricity Compressed air Grinding Dust, CO 2, Noise Electricity Compressed air Drilling Dust, CO 2, Noise Electricity Compressed air Stamping CO 2 PVA liquid Electricity Compressed air Dipping CO 2 Electricity Inspection CO 2 Electricity Packing CO 2 Diesel Shipment CO 2, SO 2, NO x

19 Environmental Impacts 19 Direct Environmental Impacts The company has attached great importance to environmental issues. The plant in Suzhou introduced ISO in 2003 and maintained normal operation of the system. Main products are environmentally friendly products without asbestos, lead or other toxic and hazardous substances. The company always complies with all domestic environmental protection laws and regulations in aspects of waste management and air and water protection and devotes itself to energy-saving emission reduction for protecting our common homeland. Legal requirements and permitted limits According to Chinese law, every new manufacturing operation must comply with Environmental Protection Three Simultaneousness project in their process of construction. Three Simultaneousness requires that environmental protection facilities should be designed, established and ready to use with the main body of the project. Note: Under Article 26 of the Environmental Protection Law, installations for the prevention and control of pollution at a construction project must be designed, built and commissioned simultaneously with the design, construction and operation phases of the project. The exhaust releasing limits refer to the grade 2 of table 2 in the air-pollution general releasing limits (GB ), the II period of table 2 in the boiler air-pollution releasing limit (GB ). Please see following table about permitted limits data of air pollution. Preventing air pollution is one of the most important work in environmental protection. Waste Gas emission limits and current value Plant /Location Limits Toluene [mg/m 3 ] Particle Matter (PM) [mg/m 3 ] Nitrogen Oxide (NO x) [mg/m 3 ] Sulfur Dioxide (SO 2) [mg/m 3 ] Noise outside day+night [db(a)] Suzhou / China Current value (Average) German Limits Emissions The exhaust gas mainly comes from recycling system, hardening ovens, hot pressing machines, drilling machines, grinding machines and workshop ventilation. There are several environmental protection devices set to treating this exhaust gas. Large amount of toluene generated during production is recycled by toluene recovery system with a recovery rate of about 95 %. The active carbon used in the recovery system is renewed annually to ensure it s working. Exhaust catalysing incinerator (RTO) was installed in August Hot air with sulfid produced by the oven is conducted to the incinerator by ventilation via pipeline and released into the atmosphere through chimney after sufficient burning in RTO. Two set of gas washer were installed after the RTO device to wash the gas to further decrease the SO 2.

20 20 Environmental Impacts Small amount of unorganized exhaust gas volatilized from the hardening oven is collected by ventilation and conveyed to biological-washer tower via pipeline. After the organism component of the exhaust gas be catabolized by bacteria, the pollutant was reduced which is far below the permitted limits. The exhaust generated by hot pressing machine was also conducted into the Bio-washer. Combustion media used by boilers of the company is natural gas supplied through the gas pipeline of Suzhou China Resources Gas Co., Ltd.. This has greatly reduced atmospheric pollution caused by combustion. Water protection The company implements Article of national Integrated Wastewater Discharge Standard (GB ) for sanitary wastewater discharge, third class discharge standard for wastewater to be discharged to urban drainage system of secondary class sewage treatment plants and domestic sewage is discharged into the municipal sewage pipe network. Wastewater is discharged to cooling tower for recycling and waste water in biological water wash tower is recyled repeatedly. Every year, the Department of Health, Safety and Environmental Protection authorizes qualified units to conduct monitoring and issuing monitoring reports. The dust collectors are used to collect the dust produced by grinding machines and drilling machines. To ensure the collectors effectively working, all of the dust collecting bags are changed annually. Waste Management The waste is recycled as much as possible. All solid waste in plant is classified into hazardous waste, recyclable waste and general solid waste. Waste classification in site Waste type Hazardous waste Recyclable waste General solid waste Detailed description Waste solvent Waste wooden pallet Waste cardboard Waste paper tube Waste metal Domestic waste Dust (Generating by drilling & grinding process) Different waste was collected by different way and stored at different places with different labels. Necessary protective measures is taken during the process of collecting and storing: >> The waste containers must be leak-free and non-volatile. >> Fire-fighting equipments are placed in the location in case the fire caused by flammable and explosive waste. >> The layout of the storehouse must according to the 5S management requirements. Recycling service providers for various solid waste must provide legal relevant qualification certificate. The processes of waste loading and transporting were monitored by related person to avoid leakage.

21 Environmental Impacts 21 Usage of natural resources and raw materials >> Electricity, steam, natural gas are the main energy resource of production in the site. (Detailed information see table 1) >> Fresh water is used in fire controlling system and bath room, so the consumption of fresh water is small. Additional, recycling water is used in cooling tower. >> Rubber, resin, brass wire, glass fiber and cotton yarn are used as the main raw material to produce friction plates. Energy saving is one of our top priorities. The data of water, power, natural gas and steam consumption always be collected and analyzed. Some targets and indicators were set about water and power consumption for consumption control. Some energy saving measure were implemented such as setting limited temperature on air-conditions, closing unnecessary light, optimizing lighting system in workshop, decreasing electricity consumption of dustcollector by cleaning the dust in pipe. Usage of chemical >> Toluene is used to solve rubber into semi-liquid. >> Several kinds of resin are used as raw material. >> Sulfur, ethanol, acetone are more or less used in production. The suppliers of the company were all qualified in business permission. Before purchase chemicals and other materials, strict quality checking always be conducted, such as without the lead and asbestos in according with EU s requirement. The suppliers must be termly assessed. Safety and environmental requirements were delivered to them. Risk of potential environmental accidents and impacts out of incidents, accidents and potential emergency situations >> The toluene tank is set underground. It is double-wall, so the leakage is impossible >> The exhaust gas was treat by some treatment device. A set of gas detecting system was installed to detect the gas concentration around plant area. If the treatment device doesn t work, the gas would be detected by the detector immediately. This is the way to avoid pollution air affect the neighborhood. In case the accident occurring, regularly check of the tank and treatment device is implementing all the time. Transportation and logistics management The logistics was relegated to professional logistics company and they have relevant qualification. We termly check their qualification, especially the dangerous chemical ones. All of their workers are required to have emergency responding and dealing ability.

22 22 Environmental Impacts Indirect Environmental Impacts Products and packaging The friction plates are according to the same manufacture and quality standard as German plant. By continuous producing recipe improving, our product was no asbestos and no lead, and we are working at no solvent production. The company use recycling packing material as more as possible in order to reduce environment impact. Recycling carton and wooden box are mainly used. Transport companies are entrusted with all our goods transportation issues. For international good delivery we choose transportation by sea and for national good delivery transportation by trucks. Besides we also require the transportation company that they should fit the requirement of environment protection during delivering our goods. Transport employees Most of employees using bicycle or electric car for going to and returning from work which reduces environmental pollution. Few employees drive a car and there are 35 parking spaces for them in company. Contractors Any contractor who will conduct operations in the company must promise that: All operations conducted in the company are in accordance with the requirements of environmental laws and regulations. All operations are conducted in the company are in strict accordance with the requirements of environmental management system and operation procedure requirements. Educate relevant operators who are going to execute operations in aspects environmental awareness and environmental protection requirements of the company and the management department will perform contractor trainings in aspects of environmental protection and so on if necessary. The procurement department is responsible for supplier evaluation and selection according to environmental management requirements of the company. Priority shall be given to suppliers who have passed or planned to apply for authentication of ISO environmental system for procurement. Hazardous chemical suppliers or traders are also required to provide relevant proof of legal qualification, such as business licenses, production or sales license and the material safety data sheet (MSDS) of relevant hazardous chemicals.

23 Health and Safety 23 Risk Management Fire Fighting and Emergency Response Plans After being employed by the company, new employees will receive factory training at first for understanding the use of fire equipment in the factory. Voluntary fire controller fire drill is held every year for practicing the use of various fire equipments of different positions in the workshop. Security The plant has altogether 8 security guards from outsourcing Turnkey companies. They are mainly responsible for: 1. Personnel, vehicle and materials access control. 2. Protecting safety of the company personnel and property. 3. Investigation of security accidents. 4. Safeguarding image of the company and protecting trade secrets. Furthermore, for fully ensuring property safety of the company, the main passages, workshops, offices and other regions are equipped with altogether over 40 security cameras and perimeter of the plant area is equipped with infrared sensor defense system. High-tech Industrial Development Zone Fire Brigade is about 4.5 kilometers away from Schaeffler and off-site fire rescue may arrive at the scene within 5 minutes. The plant is equipped with altogether 62 indoor fire hydrants, 10 outdoor fire hydrants, 4 sets of carbon dioxide fire extinguishing systems, 200 fire extinguishers, 2 pools for water to be used by fire hydrants, 24 manual alarm equipment and 47 smoke detectors.

24 24 Health and Safety Health and Safety Social responsibility Worker Health Protection For the risk factors which are involved in the factory, to prevent the occurrence of occupational diseases, the company arranges the occupational health examination for the employees in qualified hospitals in Suzhou every year. For employees various types of contraindications discovered, the company timely arranges for their removal from the working posts. In addition, pre-job and in-service occupational health examinations are also completed. The workplace is equipped with complete personal protective equipment. Occupational health training is carried out every year for enhancing staff occupational health awareness. In production, the injured employees will be sent to the Second Affiliated Hospital of Soochow University promptly or call 120 for rescue if serious industrial accidents occurred. The Second Affiliated Hospital of Soochow University is 5.5 km from Schaeffler and medical care and rescue personnel may arrive here in 5 minutes. In pursuit of the corporate culture of Schaeffler Group Greater China Quality, Speed, Integrality and Caring, Schaeffler Friction Products (Suzhou) Co., Ltd. has made great efforts in taking corporate social responsibilities and making contribution to Suzhou District. We have being taken the responsibility of helping numbers of disabled people on our own initiative. We provide them living cost monthly and pay the social insurance for them. What we are doing is to reduce the burden of the nation and the society.

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26 26 Key Indicator Key Indicators according EMAS III SUZHOU [CHINA] Absolute Relative* Database Reference data Added value in Mio. Euro [Mio] General Data Total headcount [EMP] Size of property [m 2 ] Total sealed surface [m 2 ] [m 2 / Mio ] Biodiversity [%] Input Water [m 3 ] [m 3 / Mio ] Electricity [kwh] [kwh / Mio ] >> Amount of electricity from renewable energy (only external supply) [kwh] [kwh / Mio ] >> Amount of electricity generated inhouse (conventional) [kwh] [kwh / Mio ] >> Amount of electricity generated inhouse from renewable energy [kwh] [kwh/ Mio ] >> Percentage of renewable energy with regard to overall consumption [%] Natural gas [kwh] [kwh / Mio ] >> Amount from renewable energies [kwh] [kwh/ Mio ] >> Percentage of renewable energies [%] Light fuel oil [l] [l / Mio ] >> Amount from renewable energies [l] [l / Mio ] >> Percentage of renewable energies [%] Fuels for internal logistics Diesel [l] [l / Mio ] >> Amount from renewable energies [l] [l / Mio ] >> Percentage of renewable energies [%] Gasoline [l] [l / Mio ] >> Amount from renewable energies [l] [l / Mio ] >> Percentage of renewable energies [%] District heating [kwh] [kwh/ Mio ] >> Amount from renewable energies [kwh] [kwh/ Mio ] >> Percentage of renewable energies [%] Propane / LPG [kg] [kg/ Mio ] Metanol [kg] [kg/ Mio ] Energy input [kwh] [kwh / Mio ] >> Amount of renewable energy with regard to total energy input [kwh] [kwh/ Mio ] >> Percentage of renewable energy with regard to total energy input [%] 0 0 0

27 Key Indicator 27 Absolute Relative* Database Emulsion concentrates [kg] [kg / Mio ] Processing oils [kg] [kg / Mio ] Solvent - VOC [kg] [kg / Mio ] Solvent - non VOC [kg] [kg / Mio ] Metal raw materials [t] [t / Mio ] Metal semi finished products (external supply) [kg] [kg / Mio ] Other raw materials [kg] [kg / Mio ] Output Waste [t] [t/ Mio ] non hazardous waste [t] ,68 12,39 10,95 [t/ Mio ] >> paper, cardboard [t] ,01 3,32 3,72 [t / Mio ] >> waste wood [t] ,88 0,61 0,08 [t/ Mio ] >> domestic waste [t] ,79 8,45 7,15 [t / Mio ] >> others [t] [t/ Mio ] hazardous waste [t] ,74 [t / Mio ] >> grinding swarf / sludge [t] [t / Mio ] >> waste emulsion [t] [t/ Mio ] >> waste oil [t] [t/ Mio ] >> others [t] ,90 104,83 88,74 [t / Mio ] Scrap (ferrous + non-ferrous) [t] [t/ Mio ] >> Waste for recycling [t] [t/ Mio ] (without scrap) [%] >> Waste for disposal / [t] ,74 [t / Mio ] removal [%] CO 2-equivalents [t] [t / Mio ] >> CO 2-emissions from combustion processes at this site [t] [t/ Mio ] >> CO 2-emissions from electricity obtained from external sources [t] [t / Mio ] >> CO 2-emission factor per kwh electricity obtained from external sources [g / kwh] >> CO 2-emissions from district heating obtained from external sources [t] [t / Mio ] >> CO 2-equivalent from the refrigerant agent amounts refilled due to leakages [kg] [kg / Mio ] SO 2 - emissions from combustion processes at the site [kg] ,7 1,5 1,6 [kg/ Mio ] NO x - emissions from combustion processes at the site [kg] [kg / Mio ] Particulate matter emissons [kg] ,04 0,04 0,04 [kg / Mio ] >> from combustion processes at the site [kg] ,04 0,04 0,04 [kg / Mio ] >> from production an other processes [kg] [kg/ Mio ] VOC-emissions [kg] ,78 25,11 23,38 [kg / Mio ] * In relation to added value Sources for evaluation of emission factors are the ProBas data bank ( - status: September 22 nd, 2011) as well as the GEMIS 4.8 data bank (

28 28 Environmental Indicators Input Water Consumption The production in Suzhou plant didn t need water. The water consumption in site was for boiler, waste gas treatment device, toilet, bathroom and floor cleaning machines. [m 3 / million value added] Water Electricity consumption Most of production machines were motivated by electricity and compressed air which converted from electricity finally. So electricity was the most important to industrial production. In the meantime, electricity saving was very important to Suzhou plant. The company always dedicate to increase production efficiency and conduct some energe saving projects for electricity saving. [kwh/ million value added] Electricity Steam and natural gas consumption The natural gas was used to produce steam in boiler and to burn the waste gas in RTO device. Except the steam come from boiler, the company also purchase some outside. The natural gas and steam consumption were complementary. So as a result, the steam consumption was de creased when the natural gas consumption was increased. In RTO device, the hot burnt gas was used to pre-heat the new gas before it let out. It saved lots of natural gas. [m 3 / million value added] Natural Gas Raw material consumption Copper, cotton yarn, glass fiber, resin and rubber were main raw material which we used to producing products. During production processes, toluene were used as solvent. In the passed 3 years, the raw materials consumption on unit production value didn t wave a lot. They kept in a steady level. [t / million value added] Total Raw Material

29 Environmental Indicators 29 Output CO 2 Emissions This chart shows the CO 2 emission value. The unit CO 2 emission came from electricity generating (External). Due to the unit electricity consumption was decreased year by year, the unit CO 2 emission was decreasing. [t / million value added] CO Solid waste management Hazardous wastes are mainly waste chemical raw material and waste oil. Such wastes are uniformly handled by qualified unit. Cardboard, wood, metal and so on matters generated from production are treated as recyclable wastes and sold to qualified waste recovery companies. The waste dust was treated by qualified company as general waste from this year. The additional thickness of semi-product would decide the dust production. Also, different products had different dust production. We are keep in reducing the additional thickness of products so that the dust would be increased. As a good result, the dust quantity was increased in NO x emission This chart shows the unit NO x emission value. The NO X emission come from natrual gas combustion. Due to the unit added value natrual gas consumpation was decreased this year, the NO X emission was decreased, too. [kg / million value added] NO x

30 30 Goals and Programs Goals and Programs Accomplishment of old aims Environmental goals Environmental programs Completed? Due date Environmental complaints amount < 2 Energy cost saving Energy total / Production credit < 7.5 % To reduce the toluene usage (ton) per unit (1 kg) semi-product 10 % (last year: 0.023) Goal has been achieved. Goal not achieved. >> Installing online monitoring >> device on chimneys >> Hot pressing machine heating all >> tool frame and tools >> new energy efficient tool, only heating tools >> two press replace with new design tooling >> To increase the proportion of >> extrusion process instead of impregnation. (10 % promotion) Part of goal has been achieved. Additional actions planned.

31 Goals and Programs 31 New Goal When we are setting environmental protect goals, we have to consider the energy saving and pollution reduction. Energy saving always be important things we focus on each year. We still have to saving energy in In case of the waste gas give negative effect to neighborhood, we have to keep an eye on the waste gas emission all the time. Reducing pollutant s generating is the best way to protect environment, so we are trying to reduce the solvent emission by reducing its usage. Environmental goals Environmental programs Deadline 4.5 % increase in energy efficiency in terms of electricity consumption (based on added value) and the degree of completion of the energy efficiency actions with a ROI up to 4 years of 100 % >> Energy efficiency reaches kwh/cny (in term of electricity consumption / added value, increasing by 4.5 %) >> Energy efficiency reaches kwh/cny (in term of electricity consumption / added value, increasing by 4.5 %) >> Energy efficiency reaches kwh/cny (in term of electricity consumption / added value, increasing by 4.5 %) >> Energy efficiency reaches kwh/cny (in term of electricity consumption / added value, increasing by 4.5 %) >> Energy efficiency reaches kwh/cny (in term of electricity consumption / added value, increasing by 4.5 %) >> Completion of the energy efficiency actions with a ROI up to 4 years of 100 % Creation of a risk analysis for the natural gas and water supply according to the provided template (by ICEM), and emergency plans creation of a strategy and action plan as a rusult of the risk analysis Energy efficiency in production >> Creation of a risk analysis for the natural gas supply and emergencyplans. Creation of a trategy and action plan as a rusult of the risk analysis >> Creation of a risk analysis for the water supply and emergencyplans. Creation of a trategy and action plan as a rusult of the risk analysis >> Kick off meeting of energy efficiency in production line >> List key enenrgy consumption machines and process analysis >> Energy consumption monitor of Key enenrgy consumption machine and process analysis >> Energy saving plan and implementation of key enenrgy consumption machine and process analysis >> Workshop in each Seg. in each plant Pass cleaning productin audit >> None Promoting the efficiency of the >> Investing on a waste water treatment device to bio-washer tower treat the waste water in bio-washer tower To reduce the SO 2 emission >> To install a wash tower after RTO gas treatment device to wash the after treated gas

32 32 Validation Validation and responsibilities VALIDATION Dr.-lng. Reiner. Beer, with EMAS environmental verifier registration number DE-V-0007, accredited or licensed for the scope (NACE Code), declares to have verified the site 36 Daoan Road,New district of Suzhou, Jiangsu Province, P.R.CHNIA TEL: as indicated in environmental statement / updated environmental statement of the organization Schaeffler Suzhou meet all requirements of Regulation (EC) No 1221 /2009 of the European Parliament and of the Council of 25. November 2009 on the voluntary participation by organizations in a community ecomanagement and audit scheme (EMAS). By signing this declaration, I declare that >> the verification and validation has been carried out in full compliance with the requirements of Regulation (EC) No 1221 /2009 >> the outcome of the verification and validation confirms that there is no evidence of non-compliance with applicable legal requirements relating to the environment >> the data and information of the environmental statement /updated environmental statement of the site reflect a reliable, credible and correct image of all the sites activities, within the scope mentioned in the environmental statement This document is not equivalent to EMAS registration. EMAS registration can only be granted by a Competent Body under Regulation (EC) Nr /2009. This document shall not be used as a stand-alone piece of public communication.

33 Validation 33 Done at Schaeffler Suzhou Dr.-lng. Reiner.Beer Environmental Verifier Responsible for environmental protection at the Suzhou location: Mr. Shengguang Qian Plant Manager Responsible for environmental statement at the Suzhou location: Ms. Qing Wang EHS Engineer The next consolidated (entire) environmental statement will be submitted for validation in April 2018 at the latest.