Global Responsibility Environmental Report 2003/2004 About This Report

Global Responsibility Environmental Report 2003/2004 About this report

This Environmental Report, the third to ronmental data and indicators are present- be produced by Bosch, is titled “Global ed in a separate section in the appendix. Responsibility” in acknowledgement of the fact that we have expanded reporting What do you expect of Bosch in the areas to cover not just Europe, as in our previous of environmental protection and corpo- reports, but also all of our other interna- rate citizenship, and what does the com- tional sites. We are also publishing global- pany have to do to satisfy your require- ly consolidated environmental data for the ments? We posed this question to five Bosch Group for the first time. The report people from different external stakeholder also addresses the formal corporate values groups in different countries. Their an- we adopted in 2002 and pays particularly swers, which are documented in the report, close attention to the “Responsibility” val- indicate some of the challenges we face ue. We hope in this way to demonstrate over the next few years. Dialogue with our the great importance of corporate citizen- customers, scientific and research bodies, ship at Bosch in addition to presenting our environmental authorities, and trade asso- achievements in environmental protection. ciations is essential if we are to continue our progress, and we hope that this Envi- We devote much of the report to explain- ronmental Report will stimulate further ing the environmental benefits of our prod- active communication with these groups ucts. The structure of the corresponding and, in particular, with our associates in section reflects the organization of our all of the Group’s regional subsidiaries business sectors. The site examples select- around the world. ed provide an insight into the latest developments across a whole range of produc- The interviews are reproduced in full tion-related environmental protection is- along with further information about sues in the three major business regions of this Environmental Report at Europe, Asia, and the Americas. The envi- www.bosch-environment.com. 3www.bosch-environment.com 3

6 12 18 30 36

Contents

4 Foreword 30 Global environmentally-compatible manufacturing 6 The company and its values 31 Europe 7 The Bosch Group 33 Asia, Africa, Australia 8 The business sectors 35 The Americas 9 The Bosch values 10 The “Responsibility” value 36 Corporate citizenship 11 Responsibility and environmental protection 37 Development projects supported by the Robert Bosch Foundation 12 The environmental management system 38 The company and society 13 Challenges 39 Social involvement 14 Global environmental policy 15 Integrated management 40 Global environmental data 17 Supply chain management 41 Material and energy flows 44 Environmental objectives of the Bosch Group 18 Environmental protection and products 46 Contacts details and addresses 19 Environmentally-oriented development 20 Products and their environmental benefits 21 Automotive technology 25 Consumer goods and building technology 28 Industrial technology 4

Bosch Group worldwide key data* 2003 2002 Units Sales 36,357 34,977 € m Sales outside Germany 71 72 % Associates 231,600 224,341 Research and development spending 2,650 2,487 € m Investment (in property, plant and equipment) 2,028 2,006 € m Net income for the year 1,100 650 € m Unappropriated earnings 60 60 € m (dividend of Robert Bosch GmbH) Energy consumption 7,307,817 5,283,577 MWh Water consumption 22,194,575 18,046,091 m3 Total waste generated 916,840 723,824 t

CO2 emissions 623,615 308,341 t

* 2003 includes Buderus AG for the first time

Foreword

Dear Reader,

The last two years have seen Bosch introduce numerous product innovations to help reduce our impact on the environment. One of the highlights of 2003 was the result of our innovative achievements in pursuit of the eco-friendly diesel engine. We commenced series production of the third generation of our common rail system and took the decision to start manufacturing sintered metal particulate filters from 2005. The new diesel direct injection system reduces pollutant emissions by up to 20 percent as compared with the best existing diesel systems, while the new diesel particulate filter, which requires no maintenance throughout the lifetime of the vehicle, will further reduce overall particulate emissions. 5

7 Franz Fehrenbach (right), Chairman of the Board of Management of Robert Bosch GmbH and Wolfgang Drees, Member of the Board of Management of Robert Bosch GmbH with responsibility for environmental protection

Environmental awareness has a long tradi- this process, we decided to lay down our tion at Bosch. We published the first bind- corporate values in writing for the first ing environmental protection regulation time, so that they might provide us with a thirty years ago, which is around the same source of direction and orientation through time as we formally adopted our policy the ongoing cultural change and sharpen that all future developments in automo- our focus on results and on the future. tive technology should help to make automobiles safer, more eco-friendly, and The 3-S program, our environmental more economical. This policy originated principles, and the need to recognize the from our 3-S program, an initiative that, wider interests of society have all in- as achievements such as our most recent formed our code of values. We are confi- innovations in diesel technology ably dent that the “Responsibility” value in demonstrate, is more pertinent than ever particular will engender new environmen- three decades on. The same applies to our tal protection initiatives. In this respect, environmental principles, which we have our values amount to a covenant for the recently revised and which are binding on future: we intend to remain a reliable and all business sectors worldwide. responsible partner for customers and society all over the world by continuing to Like other companies, Bosch faces new work closely with our associates to pursue and evolving challenges as a result of con- ambitious objectives in our business sec- temporary changes in markets and soci- tors and enhance our profitability. ety. The BeQIK company-wide change process we initiated back in 1999 helps us to stay up to speed by keeping our operations flexible and adaptable. As part of Franz Fehrenbach Wolfgang Drees 6

The company and its values

Bosch is one of the largest industrial enterprises in Germany and the world’s second largest automotive supplier. Our more than 200 manufacturing sites span the globe, with locations on every continent. We formally defined our corporate values in writing in 2002 as part of our BeQIK change process. The values are intended to help us keep our bearings and to guide us as we identify and face up to the challenges of the future. Our “Responsibility” value acknowledges both our duty to society and our obligation to protect the environment.

7 Flashes of inspiration are nothing new at Bosch: products like the spark plug, which have been with us for over a century, never cease to inspire participants in the company’s trainee programs. 7

The constitution of the Bosch Group Associates by region in 2003 (total: 231,600)

Robert Bosch Stiftung GmbH 31,200 166,150 92% share, no voting rights

34,250 Bosch family Robert Bosch 8% share and Industrietreuhand KG 7% of voting rights 93% of voting rights

Robert Bosch GmbH Europe Capital stock € 1.2 billion The Americas Asia/Africa/Australia

As per January 1, 2004

The Bosch Group

Sales of more than € 36 billion (2003) automation technology, and packaging make Robert Bosch GmbH one of the technology sectors. Bosch successfully largest industrial enterprises in Germany. consolidated its market position as the The three business sectors Automotive world’s second largest automotive tech- Technology, Industrial Technology, and nology supplier in 2003. The takeover of Consumer Goods and Building Technolo- Buderus AG completed during 2003 means gy together employ some 232,000 people. that Bosch is now also Europe’s largest Based in Stuttgart, the Group has been producer of heating technology products. BeQIK active all over the world for many years. The BeQIK initiative incorporates International business activities have ex- The constitution of the company an entire series of projects de- panded rapidly in recent years and 185 of The company traces its origins back to the signed to ensure the continuous improvement of all of our internal the Group’s 249 manufacturing sites are “Workshop for Precision Mechanics and processes. BeQIK is all about located outside Germany. With its sub- Electrical Engineering” opened by Robert doing everything at a higher sidiaries and affiliates, Bosch has locations Bosch in Stuttgart in 1886. In 1964, the speed in order to enhance quality, innovation, and customer fo- on every continent and in more than founder’s heirs transferred the majority of cus. Our successful quality as- 50 countries. The share of sales generated their shares to the Robert Bosch Founda- surance program, including the outside Germany now stands at 71 percent. tion, an organization with purely charitable EFQM Excellence Model and Six Sigma methodology, helps aims. Today the Robert Bosch Foundation to keep our customers satisfied A broad product range holds around 92 percent of the capital and our quality standards high. The Bosch name is closely associated with stock of Robert Bosch GmbH – a sum the automobile. We develop and manufac- amounting to € 1.2 billion. In accordance ture a great diversity of products for the with its charter, the foundation uses the major automotive manufacturers, includ- annual dividend to support projects that ing diesel and gasoline fuel-injection sys- serve the common good. Responsibility tems, automotive electronics, and chassis for the executive management of the systems. Bosch products also enjoy an ex- Bosch Group rests with Robert Bosch cellent reputation in the power tools, Industrietreuhand KG, which holds household appliances, thermotechnology, 93 percent of the voting rights. 8 The company and its values

Sales by business sector in 2003 Sales by region in 2003 (total: € 36.4 billion) (total: € 36.4 billion)

23.1% 65.0% 14.4% 67.5 %

11.9 % 18.1 %

Automotive Technology € 23.6 billion Europe € 24.6 billion Industrial Technology € 4.3 billion The Americas € 6.6 billion Consumer Goods and Asia/Africa/Australia € 5.2 billion Building Technology € 8.5 billion

The business sectors

Bosch achieved sales in excess of € 23 bil- The Consumer Goods and Building Tech- lion in the Automotive Technology Busi- nology Business Sector includes the power The three business sectors that make up the Bosch Group com- ness Sector in 2003. Automotive Technol- tools, thermotechnology, security systems, prise the following divisions: ogy operates around the world, employing and broadband networks business areas, some 143,600 people. The four major busi- as well as the electrical household appli- Automotive Technology • Gasoline Systems ness areas are fuel injection technology for ances such as washing machines and refrig- • Diesel Systems internal combustion engines, active and erators produced by the BSH Bosch und • Chassis Systems passive vehicle safety systems, electrical Siemens Hausgeräte GmbH joint venture, • Energy and Body Systems • Car Multimedia machines, and mobile communication which is one of the world’s leading house- • Automotive Electronics systems. hold appliance manufacturers. Consumer • ZF Steering Systems Goods and Building Technology employs • Automotive Aftermarket Bosch’s Industrial Technology Business a total of around 47,500 people. Industrial Technology Sector employs around 32,900 people in • Bosch Rexroth the fields of drive and control engineering, Distribution of sales • Packaging Technology • Metals Technology packaging technology, and metals tech- The Bosch Group has acknowledged that nology. The Group’s wholly-owned sub- in the long term it would like to see its Consumer Goods and sidiary Bosch Rexroth AG is regarded as a sources of revenue spread more evenly Building Technology • Power Tools technology leader in the manufacture of across the various business sectors. The • Thermotechnology plant and equipment. Our metals technol- share of total sales contributed by Indus- • Household Appliances ogy business area specializes in casting and trial Technology rose to nearly twelve per- • Security Systems • Broadband Networks special steel products, while our packaging cent in 2003 as a result of the consolida- technology business area has developed tion of Bosch Rexroth AG and Buderus into a broad-based technology provider. AG, while that contributed by Automotive Technology fell to 65 percent. The Con- sumer Goods and Building Technology Business Sector yielded a share of around 23 percent in 2003. 9

A value focus and value management are nec- » essary conditions for lasting success on the international stage. National and international legal systems place enormous emphasis on the prevention of malicious activities such as cor- ruption, fraud, deception, and dishonesty. The political community expects companies to measure up to their economic, ecological, and social responsibilities around the world. This implies the need to put in place clear and bind- Prof. Dr. Josef Wieland, ing internal values and codes of conduct and specialist in business ethics at the Konstanz work to see these implemented in everyday University of Applied business practice. Sciences in Germany « and Director of the KIeM Institute for Intercultural Management, Values, and Communication.

The Bosch values

Our founder attached great importance to Values and value enhancement values in his lifetime, and the company still We decided to make “Future and Result shares his conviction. Robert Bosch ex- Focus” the first value in our code in order pressed his views most succinctly in obser- to emphasize that whatever else we vations such as “It is better to forfeit mon- achieve, everything we do must at the very ey than trust” and “I credit my success least help to enhance our economic suc- more to my character than to my knowl- cess. This, in effect, links leadership by val- edge.” The values that guide our company ues to value based management and to The code of values today were committed to writing for the our ultimate objective of boosting the val- The seven Bosch values put in- first time in 2002 as part of the change pro- ue of the company. Management-level as- to words the beliefs that guide cess associated with the BeQIK initiative. sociates have a particular responsibility in us in our business operations. They describe our attitude to this connection: they are expected not on- business partners, investors, A sense of direction in a changing culture ly to be seen as people who put our values associates, society, and the en- The code of values we now have is intend- into everyday practice, but also as people vironment. ed to act as a beacon for all associates and who keep a constant eye on the value of 1 Future and Result Focus managers in the turbulent period of cul- our company and opportunities to en- 2 Responsibility tural change in which we find ourselves. hance it. Our new “Bosch Guidelines for 3 Initiative and Determination 4 Openness and Trust Shared values are an important tool for Leadership” provide them with a frame- 5 Fairness creating unity within an organization, es- work within which to act and help them 6 Reliability, Credibility, and pecially one such as ours that brings to- to fulfill the above tasks. Legality 7 Cultural Diversity gether people from a wide range of different countries and cultural backgrounds. Our code of values provides a platform 3www.bosch.com/en/company/values/index.htm for effective cooperation based on trust, and helps to create a common identity uniting the Bosch companies and their associates. It also encourages individual initiative. 10 The company and its values

1 Robert Bosch’s house, headquarters of Robert Bosch Stiftung GmbH, www.bosch-stiftung.de

The “Responsibility” value

We believe our standing as a corporate cit- A tradition of benevolence izen entails a particular responsibility in Our long tradition of involvement in Responsibility “We accept that our actions two areas: we have a duty to the society in benevolent and charitable activities ex- must accord with the interests which we are rooted and we have a duty to tends all the way back to the diverse initia- of society. Above all else, we the natural environment in which we live. tives of Robert Bosch (1861–1942). Orga- place our products and services in the interests of the safety of This belief has a bearing first and fore- nizations such as Bosch-Jugendhilfe, which people, the economic use of re- most on our products and services, which, provided support for young people, the sources, and environmental sus- as Robert Bosch himself put it,“must be society for the promotion of public edu- tainability.” of use to the public at large.” It means, cation, and the Robert Bosch Hospital, for (from the Bosch values) moreover, that like any decent organiza- example, all came into being in the period tion we respect justice and the law and between 1910 and 1940 as a result of our that we stand by our word. Our company, founder’s commitment to social issues. however, also takes a more active role in The Robert Bosch Foundation, which is helping to address the problems of society one of the largest company-based benevo- through the Robert Bosch Foundation, lent organizations in Germany, ensures which is funded from our dividend. We that this commitment remains strong to- believe, furthermore, that there is more to day. Founded in 1964, it permanently an- responsibility than just what we owe to chors Robert Bosch’s sense of duty to soci- the outside world. Responsible local ini- ety and concern for the wider community tiatives at numerous points throughout into the constitution of the Bosch Group. our company help us to seize market op- The foundation was created, according to portunities, stay ahead of changes in the its charter, to support and promote public market and, in the end, achieve greater healthcare, international understanding, economic success. social welfare, education and training, arts and culture and the study of the humani- ties, the social sciences, and science (see page 37 for more about current projects). 11

PRINCIPLES OF WORK SAFETY AND ENVIRONMENTAL PROTECTION SUSTAINABILITY 1 We accept that our actions must accord with the economy, the ecology, and the responsibility we take for the community at large, also with a view to future generations. For this reason, respect for people’s health and safety, for an economic use of resources, and for a natural and clean environment are basic principles of our business policy. RESPONSIBILITY 2 It is the task of all associates to help prevent the endangering of people and the environment, as well as to maintain strict compliance with all laws and regulations pertaining to work safety and the protection of people’s health and the environment. It is a leadership task to recognize such dangers, to evaluate them, and to undertake appropriate actions. PRODUCTS 3 We develop and manufacture products that are safe, eco-friendly, and economical. Our products enhance people’s safety and reduce burdens to the environment, also during their subsequent recycling and disposal. PROCESSES 4 We design processes to ensure that – wherever economically feasible – people’s health and safety have priority and that effects on the environment are kept to a minimum. We are prepared to cope with emergencies. This is also the spirit in which we cooperate with suppliers of goods and services. CONTINUOUS IMPROVEMENT 5 We review our processes and our behavior on a regular basis, just as we measure their effects on people and on the environment. This is how we identify weak points and potential for improvement, and ensure the effectiveness of our program for work safety and protection of people’s health and the environment.

Responsibility and environmental protection

Responsibility for the environment is a jection systems for gasoline and diesel en- core value at Bosch and is firmly anchored gines. The latest version of the ESP is a in our principles for safety and environ- highly sophisticated and extremely effec- mental protection. These principles ex- tive safety product: studies carried out by tend to associates, services, and suppliers, our customers indicate that making ESP and their aim is the continuous improve- standard equipment in road vehicles ment of our environmental performance, could cut the number of serious traffic ac- allied to a concern for occupational safety. cidents by up to 50 percent. Spurred on by Bosch introduced its first binding guide- existing and nascent environmental con- line on environmental protection thirty cerns, our development engineers are also Environmental protection years ago. The principles of environmen- continuing their efforts to make road ve- logo tal protection, which have since been up- hicles more eco-friendly and more eco- The Bosch environmental pro- dated a number of times, were formulated nomical by cutting fleet fuel consumption tection logo symbolizes uncon- taminated water, clean air, and in 1996 and apply throughout the Bosch and emissions of carbon dioxide and pol- unspoiled nature. Measures de- Group worldwide. lutants. The 3-S program makes environ- veloped to protect the environmental protection a constant and integral ment often draw attention to potential cost savings. Environ- The 3-S program component of our business strategy. This, mental protection is an integral Three decades old and more pertinent in turn, makes it much easier for us to part of our business strategy than ever is the Bosch 3-S program, on the identify how environmental protection and plays a significant role in stimulating and guiding product basis of which we have been working since issues interact with other strategic con- innovations. It thus helps not the 1970’s to make automobiles safer, cerns: if we want our eco-friendly and only to ensure our profitability, more eco-friendly, and more economical. economical diesel systems to succeed, for but also to open up new business areas. The program has inspired many of our pi- example, we need to make sure that they oneering achievements, including antilock also deliver the higher levels of fun and braking systems (ABS), the electronic sta- sporty performance expected by today’s bility program (ESP), and direct fuel in- drivers. 12

The environmental management system

Bosch introduced a global integrated management system for quality, environment, and safety in 2001. The system translates our values into practical action and helps us to meet new demands placed on us by customers, society, and legislators. An international steering committee set up in 2002 makes certain that we live up to the tenets of our environmental policy wherever our operations take us. Even today, every single site in the Automotive Technology Business Sector has successfully gained accreditation under international environmental management standard ISO 14001. And our new supplier evaluation process will incorporate our suppliers more effectively into our environmental protection efforts.

Second meeting of the international steering committee for occupational safety and environmental protection in Campinas, Brazil (left); Hart- mut Müller, Head of our Corporate Department for Environmental and Fire Protection, Safety (right) 3 13

For the purpose of keeping the environment » continually upgraded, Chinese businesses have to follow a new path with high technologies, low consumption of resources, and little environmental contamination. To encourage businesses into adopting environment-friendly production technologies, the environmental authority has put in place numerous measures. Resulting from the government’s incentive of tax reduction, most light motor vehicles manufactured now in China Yuansheng Fan, have come to the EU II Standard. We call for Vice President, Chinese Research Academy of further exchange and cooperation with overseas Environment Science businesses: Get involved in addressing the (CRAES), Beijing (China) environmental protection problems faced by China! «

7 Production of diesel injector pumps on the Indian subcontinent

Challenges

Our environmental system will face chal- metals in automobiles put on the market lenges from ever more regulations across after July 2003. Rules for the use of recy- the whole of the product life cycle over the clable materials come into force in 2006 next few years, with the EU Directives on and will be replaced by a more exacting re- waste electrical and electronic equipment quirement in 2015. (WEEE), restrictions of the use of certain hazardous substances in electrical and Legislation in the automotive area electronic equipment (RoHS), and end of The most significant challenges for Auto- life vehicles (ELV) imposing new require- motive Technology come from more ments on both product development and stringent exhaust gas standards in Europe product labeling. and the U.S. and from the European automotive industry’s self-imposed commit- The WEEE and RoHS Directives came into ment to cut the carbon dioxide emissions force at the start of 2003. As they relate to of new vehicles to 140 grams per kilome- electrical and electronic equipment, they ter by 2008. The new U.S. exhaust gas reg- are of concern primarily to the Industrial ulation, which comes into force from Technology and Consumer Goods and 2007, requires further substantial cuts in Building Technology Business Sectors. Our particulate and NOx emissions and will power tools and household appliances, for therefore have a particularly pronounced example, are likely to be affected by provi- effect on diesel engine technology. More sions banning the use of certain heavy stringent regulations are also expected in metals from mid-2006 and the require- China, where the EU II standard is to be ment that from 2007, a certain portion of introduced in 2004. The relevant interna- each obsolete part must be recyclable. The tional standards are not, however, expect- ELV Directive, on the other hand, only af- ed to become mandatory in China until fects Automotive Technology. This instru- 2010. ment prohibits the use of certain heavy 14 The environmental management system

How environmental protection is organized at Bosch

Board of Corporate Depart- Management ment for Environ- mental and Fire Protection, Safety Z4U Regional Divisions Subsidiaries subsidiaries

Regional Coordinator for Environmental Assignment/ Steering Protection and reporting Committee* Occupational Safety Advice/ supervision/ support Plants and Sites * International forum for strategic HSE requirements across or- Environmental Protection and ganizations (mem- Departments bers: regional HSE Occupational Safety Officer coordinators, Z4U)

Global environmental policy

The creation of our Health, Safety, and Activities in China Environment Steering Committee repre- Bosch intends to continue expanding its European emissions trading The EU Directive on the trading sents another milestone in the global im- business activities in China. Our sub- of greenhouse gas emissions plementation of our environmental policy. sidiaries and affiliated companies in Chi- permits came into force in Oc- The primary objectives and duties of this na employ just under 9,000 people and tober 2003. Bosch is commit- € ted to climate protection international steering committee, which achieved sales in 2002 of around 1.2 bil- through its environmental policy comprises the occupational safety and en- lion. A joint venture founded in 2003 by and has been making the nec- vironmental protection coordinators from the Bosch Group and China’s Wuxi Weifu essary preparations for the start of emissions trading. Emissions the Asia, Europe, and North and South Group for the development, application, trading will affect the few plants America regions, are to enhance knowl- and manufacture of electronic diesel sys- in Germany that operate large edge sharing and cooperation between tems has now commenced operations. furnaces and ovens. We are currently working to determine countries and improve our performance The rapid pace of economic development the required quantity of emis- in environmental protection and occupa- in China requires that occupational safety sions permits and to identify tional safety. The committee held its first and environmental protection measures measures to reduce our total emissions. meeting in 2002 at the plant in Bangalore, be implemented very quickly. We set up a India, and aims to convene once annually. dedicated corporate department in Shang- The most recent meeting, which took hai in 2002 to coordinate environmental place at Campinas, Brazil, in May 2003, activities and introduce management sys- concentrated on topics including interna- tems to integrate these requirements into tional environmental standards, manage- business processes across all 13 Chinese ment systems, the involvement of suppli- plants. The corporate department orga- ers, and the expansion of the DfE (Design nized an environmental conference in its for Environment, see page 19) coordina- first year, to which the relevant manage- tor network. The steering committee also ment staff from all of our Chinese plants agreed to update the internal reporting were invited. system in order to make our global reporting more uniform and more efficient. 15

Dr. Robert Kugler, Executive Vice-President of BSH Bosch und Siemens Hausgeräte GmbH with responsibility for product divisions and environmental protection was voted “Eco Manager of the Year” in 2002. 3

7 Tarja Halonen, President of the Republic of Finland, awards Bosch the European Quality Award for 2003 at the EFQM Forum in Helsinki.

Integrated management

Bosch introduced a global management land and the German business magazine system integrating quality, environmental Capital. The honor recognizes the compa- EFQM prize protection, and occupational safety in 2001. ny’s many years of pioneering work in in- Our regional subsidiary in Bur- The system is subject to continuous devel- dustrial environmental protection and its sa, Turkey, had particular cause opment in a process that considers sug- exemplary environmental performance in- to celebrate in 2003 when the Diesel Systems Division’s local gestions from our sites as well as external dicators: since 1990 BSH has cut specific site won the prestigious Euro- certification requirements. The scope of energy consumption in manufacturing by pean Quality Award (EQA) in the system has recently been expanded to 34 percent in Germany alone and slashed the Operational Unit category. Presented by the European incorporate the areas of site security, data water consumption by 72 percent. Foundation for Quality Manage- protection, and information security. The ment (EFQM), the award recog- resulting modifications are detailed in the Internal quality competition nizes outstanding performance across nine different evaluation updated manual Management System for The success of our business depends in criteria, including areas such as Quality, Environment, Safety, and Security, large measure on the quality of our prod- resources and social issues. published in September 2003. ucts and services. As part of our quality management offensive, we drew up a new Award-winning management set of principles for quality in 2003. These Successful environmental protection is not principles make the quest for quality a du- solely the result of an effective, networked ty for everyone, from the newest trainee to management system. It is the level of per- the most experienced senior manager. We sonal commitment demonstrated by man- also used the opportunity to initiate a new agers and associates that makes the real internal Bosch quality competition. Our difference. One person who has made that unit injector products, the EV6 fuel injec- difference is Dr. Robert Kugler, Executive tor, and the new ABS 8 system all received Vice-President of our joint venture BSH the Quality Prize 2003 in recognition of Bosch und Siemens Hausgeräte GmbH, their success in meeting quality and cost who was voted “Eco Manager of the Year targets and of the significant contribution 2002” by the environmental and conserva- they have therefore made to maintaining tion group Umweltstiftung WWF Deutsch- and enhancing customer satisfaction. 16 The environmental management system

Bosch sites certified to ISO 14001 by region (as at January 1, 2004)

2003

2002

2001

20 40 60 80 100 120

Europe The Americas Asia, Africa, Australia

ISO 14001 certification ly at every site. We require each of our sites An environmental management system worldwide to record certain energy and has been in place at all Bosch manufactur- material flow data. This information is ing sites worldwide since 2000. Our sites stored in a new database developed on the are audited internally or externally pur- basis of our existing energy and material suant to international environmental flow register. The new system collates all site management standard ISO 14001 in ac- data and standardizes recording of firmly cordance with a formalized plan. Automo- defined environmental, fire protection, and tive Technology became the first business occupational safety indicators, thereby sector to complete certification of its sites streamlining our internal reporting regime. in 2003 and is thus now fully compliant with the stringent requirements of the au- Environmental protection training tomotive industry. The certification Our latest revised training concept espe- process has reached an advanced stage in cially targets managers, developers, envi- other business sectors and divisions too, ronmental protection officers, and inter- and at the start of 2004 no fewer than 111 nal auditors. Seminars on environmental Bosch sites held an ISO certificate issued management systems and a special course by an accredited certification body. for environmental auditors provide a solid grounding for both internal audits and Expanded environmental controlling external certification processes. Another Part of the purpose of the environmental seminar offered gives our designers, devel- controlling activities is to identify the key opers, and suppliers the opportunity to environmental aspects of our processes. find out about new requirements and the The environmental impact of each process latest developments in environmentally- is assessed using a set of predefined criteria. compatible product design. We introduced a standard procedure for one more area, traffic, in 2003 and are consequently now able to analyze and evaluate the significant traffic parameters consistent- 17

Supplier integration at Bosch

Supplier potential evaluation Preferred suppliers Corporate agreement

Supplier audits

Other suppliers Increasing importance

Bosch presents the Supplier Award to its best suppliers every two years. 3

Supply chain management

The Bosch Group’s total purchasing vol- Committee for Environmental Manage- ume of some € 20 billion comprises man- ment of VDA, the German automotive in- IMDS ufacturing material, commodities, operat- dustry association, incorporates environ- Changes in the law mean that ing resources/services, and capital goods. mental requirements into the preferred our customers in the automotive We expect our suppliers to provide com- supplier concept in such a way that infor- sector are demanding more and more information about the ma- petitive, high quality products and ser- mation on environmental performance terials and components used in vices with good delivery reliability in all now flows into our basic supplier evalua- our products. Such disclosures purchasing segments. Every two years we tion and selection process. Environmental are necessary in order to help them ensure compliance with present our best performing suppliers issues and fire safety also form part of the substance bans and recycling worldwide with the Bosch Supplier Award. Corporate Agreement, our framework requirements in the supplier The most recent award ceremony held in contract with suppliers. chain. The Bosch Group sup- ports a uniform inter-company Bamberg, Germany, in July 2003 honored procedure for the provision of no fewer than 60 suppliers for their Evaluating supplier potential the type of information required achievements in 2001/2002. We evaluate supplier potential by carrying when using IT tools such as the International Material Data Sys- out a series of assessments at the supplier’s tem (IMDS). Environmental protection and site. The scope of evaluations has recently the preferred supplier concept been expanded to include assessment crite- In accordance with its environmental ria that estimate the supplier’s potential in principles and purchasing guidelines, the areas of environmental protection and Bosch seeks to commit suppliers to envi- fire safety. We plan to integrate environ- ronmental protection. The complex and mental protection into the supplier audit inadequately integrated Environmental program in a similar way in the future, and Protection Survey previously used to eval- also intend to ensure that environmental uate the environmental performance of factors are taken into account when pur- our suppliers was replaced with a new and chasing operating resources and plant and improved method in 2003. This method, equipment. which we have also presented before the 18

Environmental protection and products

Environmental labels such as the Blue Angel seal awarded by the German Federal Envi- ronmental Agency (UBA) identify products that feature particular environmental and/or health benefits. A number of Bosch products carry the Blue Angel, documenting our commitment to our corporate value of responsibility. Right from the development stage, various programs set the requisite standards. Environmental protection is a major innovation driver – and a significant source of new competitive advantages – in all divisions and each new product generation we release is more eco-friendly, quieter, and more energy-efficient than the last. We operate our own recycling systems and support and encourage the harnessing of renewable energy resources through a number of our products.

The environmentally-oriented design of Bosch power tools simplifies disassembly and facili- tates the recycling of end of life equipment. 3 19

Our relationship with our suppliers has become » increasingly interconnected. We work together at all stages of our product life cycle – from product development to sale, to use and service, to end of life. Sustainability, safety and environment remain a challenge and the technologies that Ford and our suppliers, like Bosch, have developed are pushing us in the right direction. The future of our industry depends on creating a sustainable business model that uses renew- Susan M. Cischke, able resources as it continues to delight and Vice President, Environ- mental and Safety help protect customers, reward shareholders Engineering, Ford Motor and protect the planet. Continue to bring us Company, Dearborn your ideas. Your creativity is essential to our (USA) future and to yours. «

Environmentally-oriented development

Endeavors to limit the environmental im- come before and after use. The program pact of our products start in the design aims to minimize overall material con- phase. Bosch Standard N33-6 Environ- sumption and increase the proportion of mentally-Oriented Product Development environmentally-friendly materials used provides clear directions to help designers right from the outset by encouraging ap- and developers optimize the environmen- propriate design considerations. It also tal performance of our products through- tries to improve environmental perform- Abstatt development center out their life cycle, as specified in the Eu- ance at the end of the product life cycle Nature conservation and envi- ropean Union’s Integrated Product Policy by ensuring straightforward product dis- ronmental protection played a (IPP) requirements. This ensures that our assembly and maximum recyclability of central role in the design and construction of our new devel- products are able to meet the demands the materials used. There is more to the opment center at Abstatt, Ger- both of the law and of our customers. Bosch DfE program than limiting materi- many. The open space plan pro- al consumption and improving end of life vides for the planting of 1,063 trees and for vegetation to cov- Bosch Automotive Technology’s 3-S pro- performance, however, with knowledge er two thirds of the total area gram (see page 11), which is in effect one management also playing a central role. and 23,480 square meters of module of an integrated product policy, Effective sharing of expertise and experi- roof space. An ecologically valuable belt of mixed fruit trees has proved to be particularly effective in ence right across the company is invalu- has been created around the reducing product resource consumption able in areas such as environmental de- site, while design features such during the use phase; its stated develop- sign. Our DfE network, which we set up as separate sewerage and wastewater systems, heat re- ment objectives,“more passive and active in 2000, now links 24 coordinators from covery systems, and a rainwater security,”“lower motor vehicle emissions,” the various divisions and regional sub- collection and utilization system and “more efficient driving” will thus con- sidiaries. The seminar concept for envi- minimize ongoing resource consumption. tinue to guide our development activities. ronmentally-oriented product design, which was revised in 2003, has done much Design for environment to assist the implementation of the DfE The rather more recent Design for Envi- program. ronment (DfE) program primarily targets those stages of the product life cycle that 20 Environmental protection and products

Products and their environmental benefits

Area of activity Typical products Main environmental Page benefits

Automotive Technology Diesel Systems Common rail system (3rd generation), Lower fuel consumption, 21 diesel particulate filters reduced emissions Gasoline Systems Electronic gasoline direct injection Lower fuel consumption, 22 (DI-Motronic) and additional functions reduced emissions Energy and Body Systems LI-X generator, engine thermal manage- Lower fuel consumption, 23 ment, automatic start-stop systems reduced emissions, recycling Automotive Electronics Electronic transmission control, sensors Lower fuel consumption, 23 reduced waste generation ZF Steering Systems1 Electric power steering system Lower fuel consumption 23 Car Multimedia2 Travelpilot EX navigation system Recycling 24 Automotive Aftermarket Factory remanufacturing through the Recycling 24 eXchange Program Chassis Systems Braking systems, brake calipers Damage/accident 24 reduction, recycling

Consumer Goods and Building Technology Thermotechnology3 Condensing boilers, Improved energy efficien- 25 solar collectors, cy, reduced emissions, heat pumps harnessing of renewable energy resources Household Appliances4 Washing machines, Improved energy 26 dishwashers, efficiency, refrigeration appliances, lower water cookers consumption Power Tools Silent shredders, Reduced noise, 26/27 rotary hammers recycling Security Systems Fire alarm systems Damage/accident 27 reduction, reduced release of harmful substances, recycling

Industrial Technology Drive and Control Engineering Pitch drives for wind turbine generators, Harnessing of renew- 28/29 axial piston pumps (whispering hydraulics) able energy resources, reduced noise Packaging Technology Bag form, fill and seal machines Reduced packaging 29 material consumption Metals Technology Special steel products, cast iron pipes, Recycling 29 brake disks

1 ZF Lenksysteme GmbH (50 % Bosch) 2 Blaupunkt GmbH (100 % Bosch) 3 including Buderus AG (more than 97 % Bosch) 4 BSH Bosch und Siemens Hausgeräte GmbH (50 % Bosch) 21

European exhaust gas thresholds for cars

HC + NOx (g/km) 0.3 0.6 0.9 1.2

EU I (1992)

EU II (1996)

EU III (2000)

Sintered metal diesel EU IV (2005) particulate filter 5

Particulates (g/km) 0.05 0.10 0.15 0.20

Spark ignition engine: HC + NOx (from EU III on, separate limits for HC + NOx replace the cumulative value previously used)

Compression ignition engine: HC + NOx (additional threshold for NOx: 0.50 g/km from EU III on; 0.25 g/km from EU IV on) Compression ignition engine: particulates particulate matter

Automotive Technology

The market for diesel vehicles is currently Bosch, and there are no indications that booming, with Bosch alone supplying this trend will let up. Since the early 1990s, around 10 million diesel injection systems particulate emissions from diesel cars have worldwide in 2002. While the short-term thus been cut by 80 percent and emissions future looks bright for diesel technology, of other substances such as carbon mon- we cannot overlook the possible increased oxide, oxides of nitrogen, and hydro- competition from alternative hybrid drives carbons have fallen by at least 90 percent. and fuel cell systems in the longer term. The likely course of events suggests three Innovations in diesel engine technology main drivers: Three innovations announced by Bosch in • The need to make further reductions in 2003 – the third generation of the com- emissions as a result of more stringent mon rail injection system, the sintered exhaust gas standards in Europe and the metal particulate filter, and the Denox- U.S. tronic system – provide an excellent basis • The need to achieve the ongoing cuts in for future progress. The new generation of consumption to which the European au- the common rail system, which uses fast tomotive industry has voluntarily com- piezoelectric inline injectors, promises to mitted itself. help deliver a further cut in emissions of • The need to satisfy customer expecta- up to 20 percent. Putting the particulate tions and demand for an ever more en- filter into series production in 2005 will joyable driving experience. help to move forward our preparations for U.S. exhaust gas standard US07, which Reducing emissions comes into force in 2007 and is the next We are confident that even the diesel en- big challenge for diesel systems. Bosch De- gine will be able to meet future U.S. emis- noxtronic, a system for selective catalytic sions standards. Progress has been made exhaust gas reduction, substantially im- thanks to a steady flow of significant in- proves exhaust gas values in commercial novations, many of them generated by vehicles over 7.5 metric tons. 22 Environmental protection and products

Fleet consumption 1990–2010

CO2 Fuel consumption l/100km (g/km) Gasoline Diesel

250 1995 (EU): 186 g/km (7.75 l/100km gasoline 7.02 l/100km diesel) 200 8.7 7. 8 ACEA* voluntary commitment 2008: 140g/km 150 –25% 5.8 5.2 5.0 4.5 100 2001 (EU): 168 g/km 3.75 3.37 (7.00 l/100km gasoline 50 6.34 l/100km diesel)

Year 19901995 2000 2005 2010

* ACEA: European Automobile Manufacturers Association

1 DI-Motronic high To convert liters per 100 km into miles per (U.S.) gallon, divide 235.21 by the pressure injector for number of liters per 100 km. gasoline engines

Reducing consumption system from wall-guided to spray-guided The great strength of diesel direct injec- combustion promise further savings. DI-Motronic Engine management with the tion as compared with traditional gasoline DI-Motronic system cuts fuel manifold injection is its 30 percent lower A look at the future consumption, especially under fuel consumption. The average fleet fuel Given the innovations currently planned, partial load, by enabling a very lean air-fuel mixture. Its closed- consumption of the passenger vehicles we expect further savings of 20 percent for loop exhaust gas recirculation sold in Germany has improved over the gasoline engines and 15 percent for diesel control system also reduces ni- last decade from 8.7 to 7.2 l/100 km, an engines. Overall, this means that modern trogen oxide emissions. Used in improvement that coincides with and is to internal-combustion engines will be just combination with a lean NOx catalytic converter and a spe- a large degree attributable to the growing as capable of meeting the strict U.S. cial catalytic converter control market share of efficient high pressure di- thresholds of the future as hybrid drives system, DI-Motronic is also well prepared for stringent future rect injection diesel engines. and fuel cell systems. A cost-benefit analy- NOx limits. sis of the various alternatives, however, re- Innovations in spark ignition engine veals some substantial differences. Reduc- technology ing the carbon dioxide emissions of a The spark ignition engine, however, has compact car by one percent involves an now started to close the gap in fuel con- additional cost of around one percent for sumption. Bosch’s DI-Motronic electronic a diesel or gasoline engine. According to gasoline direct injection system uses strat- present calculations, the same improve- ified charge technology to reduce fuel con- ment would cost approximately twice as sumption by up to 15 percent over mani- much with a hybrid drive and at least four fold injection. Other developments will times as much with a fuel cell system. make gasoline direct injection even more Looking to the future, therefore, we can efficient in future. Downsizing, for exam- conclude that optimized spark ignition ple, will see conventional engines replaced and compression ignition engines will re- by smaller turbo-charged engines that of- main the dominant source of motive pow- fer the same power but lower fuel consump- er for private vehicles for a long time to tion, while the direct start system, with its come, with predicted market shares above efficient start-stop function, and the con- 90 percent until 2015 and still in the re- tinuing development of the DI-Motronic gion of 85 percent until 2025. 23

Environmental benefits of energy systems

Energy system Peak power Environmental benefits LI-X Generator 4,000 watt Fuel saving of up to 0.5 l/100 km, reduced emissions, up to 5 dB(A) quieter Electromagnetic 4,000 watt Fuel saving of 10% valve control Electrically heated 4,000 watt Reduced emissions catalyst Electrical power steering 1,500 watt Fuel saving of 3 to 6% Electrical water pump 600 watt Fuel saving of 5% with engine thermal management

1 LI-X generator with improved efficiency

Power supply system efficiency electromechanical brakes, electromagnetic Work on developing and refining our valve control, and heated catalysts. The Sensors power supply systems for motor vehicles purpose of engine thermal management is Sensors supply a wide range of never ceases. We concentrate here on three to optimize onboard thermal economy in data for vehicle management primary objectives: we have to improve energy terms. Good engine thermal man- and thus contribute to cleaner and more efficient driving. Knock the capacity and efficiency of our systems agement can trim fuel consumption by up sensors, for example, monitor to keep pace with the growing number of to five percent, which of course also deliv- for irregular combustion in the electrical loads, we have to achieve further ers a corresponding drop in emissions. engine. Controlling engine knock can cut fuel consumption by up cuts in volume and weight on account of to nine percent. Another sensor, the shrinking installation space available, Steering and transmission systems the oil condition and level sen- and we have to ensure that both fuel con- The new electric power steering system sor, makes it possible to leave longer intervals between oil sumption and costs continue to fall. The (Servolectric) completely eliminates the changes, which obviously renew LI-X generator, which will be need for hydraulic oil and, consequently, duces oil and filter waste. launched in 2004, serves as a good exam- the need for complex hose assemblies. ple of how to combine all three aims. Its Moreover, depending on vehicle type, efficiency has been boosted to over 70 per- the Servolectric system consumes up to cent, its volume reduced by up to 20 per- 85 percent less energy than hydraulic cent and its fuel consumption cut by up to power steering, since power only has to 0.5 l/100 km. Not only that, but it is also be supplied when the driver actually steers. very noticeably – 5 dB(A) – quieter in op- Electronic transmission control for auto- eration. matic transmissions also helps to reduce energy consumption. Adaptive shifting Electrical loads strategies make it possible to change gear The energy demands of new safety sys- at lower engine speeds. tems and features are such that engine thermal management and energy saving have also become issues for the electrical loads. We are increasingly concentrating our efforts in this area on technical innovations such as electrical power steering, 24 Environmental protection and products

Factory remanufacturing at the Göttingen plant 2001–2003 (in thousands of units)

2003

2002

2001

100 200 300 400 500 600 700

Passenger car starters Generators Heavy-duty starters Ignition distributors Hot-wire air mass sensors Brake calipers

Factory remanufacturing End of life automobile recycling Bosch has been remanufacturing used The European end of life vehicle directive parts on an industrial scale since the stipulates that, from 2006, at least 80 per- 1960’s. Our facility in Göttingen, Ger- cent of the average weight of an end of life many, alone currently remanufactures vehicle must be made up of recyclable ma- more than 565,000 generators and starters terial and reusable components. This fig- to full working order every year by repair- ure rises to at least 85 percent if recovered ing worn-out parts and defective compo- material used for energy generation is in- nents or replacing them with original cluded. Although these requirements are spare parts. All remanufactured products aimed first and foremost at manufactur- are tested before leaving the facility to en- ers, the recovery and disposal of automo- The eXchange Program The eXchange brand seal iden- sure that they are as good as new. Once bile components is plainly also an issue tifies remanufactured parts such identified with the eXchange brand seal, for us as a supplier. as generators, starters, and in- they carry the same warranty as new jection and braking system components. All parts bearing products. The international eXchange Bosch subsidiary Blaupunkt is conse- this seal carry the same warran- Program not only goes a long way toward quently conducting a pilot project to in- ty as new products and are ide- implementing the end of life vehicle direc- vestigate options for removing and recy- al for keeping repair costs pro- portionate to the current value tive, but also fits in very well with the cling the Travelpilot EX navigation sys- of the respective vehicle. trend toward keeping repair costs propor- tem. The study uses a special software tionate to the current value of the vehicle package to calculate the recycling and re- concerned and helps us to meet our recovery rates for the device and to establish placement parts supply obligations. Air how easily it can be removed. One of the mass sensors and brake calipers were results of the project will be a product re- added to the remanufacturing program in cycling pass that tells the customer about 2003. This expansion and its highly com- the materials used and the options for re- petitive performance have enabled the covery and reuse. Göttingen plant to increase output over the past year. 25

Bosch gas condensing appliances Bosch solar collectors Blue Angel (environmental label RAL-UZ 61) Blue Angel (environmental label RAL-UZ 73) “for low emissions and energy consumption” “for high efficiency”

Junkers 3 CERAPUR Types ZBR/ZSBR/ZWBR 3-16A, Junkers 3 Flat plate collector Type FK 260 ZBR/ZSBR/ZWBR 7-28A, ZBR 11-42A 3 CERASMART Types Buderus 3 Flat plate collector DIAMANT Type SKS 2.1 ZB/ZSB/ZWB/ZBS 3-16A, ZWB 7-26A 3 Flat plate collector TOPAS Type K 108 3 SUPRAPUR Type KBR 15-60 3 Flat plate collector Type K 218 3 Flat plate collector Type Logasol SKN 2.0

Consumer Goods and Building Technology

The products of our Consumer Goods Gas condensing heating systems cut ener- and Building Technology Business Sector gy consumption by up to 40 percent over Condensing technology deliver most of their environmental bene- traditional boilers, because they also make Condensing technology is par- fits in the home. Bosch refrigeration use of what would otherwise be wasted ticularly efficient because it appliances, for example, help to reduce exhaust heat. They thus achieve excellent makes use of exhaust heat. The exhaust gases from the burner domestic energy consumption, while in- energy conversion rates and also have very are cooled to below the dew novations from the Thermotechnology low pollutant emissions. The Cerasmart point and the additional heat re- Division seek to exploit the potential of and Cerapur condensing appliances have leased on condensation of the water vapor component of the renewable energy resources. both received the Blue Angel seal from the exhaust is fed back into the sys- German Federal Environmental Agency tem. This technique enables Environmentally-friendly heating (UBA) in recognition of their low emis- condensing appliances to achieve nominal utilization ratios technology sions and energy consumption of up to 110 percent depending For the Bosch Thermotechnology Divi- (www.blauer-engel.de). We expanded our on thermal power. Old boilers sion, providing safe, energy-saving, and range of condensing heaters in 2003 to in- achieve no better than 70 percent and standard appliances a environmentally-friendly products is one clude new higher capacity appliances. maximum of 94 percent. Con- of its main tasks. Efficient and environ- densing appliances can cut car- mentally-compatible technologies are the The renewable energy vision bon dioxide emissions by up to 38 percent as compared with basis of a significant competitive advan- The Bosch Thermotechnology Division an old system too, so some tage and open up new business opportu- used the opportunity afforded by the ISH countries, including Germany, nities. Condensing technology, for exam- international trade fair for building and offer financial incentives to encourage their use. The U.K. in- ple, deserves much of the credit for the di- energy technology in Frankfurt in 2003 to tends to legislate to ensure that vision’s growth in Europe. The product present its vision of a renewable energy condensing appliances are portfolio of Bosch’s new subsidiary future with new products launched under used for all new installations from 2005. Buderus, especially its condensing and so- the Junkers brand. The range includes lar systems, further strengthens our posi- more efficient solar collectors, heat tion in this area. pumps, and a complete package for low 3 energy houses. Two new solar collectors www.blauer-engel.de from Junkers have further enhanced the 26 Environmental protection and products

BSH appliances in energy efficiency class* “A” 2001–2003 (in percent)

Refrigerators 2003 2002 2001

Dishwashers 2003 2002 2001

Washing 2003 machines 2002 2001

Freezers 2003 2002 2001

25 50 75 100

*as per the European Energy Label

division’s tried and tested solar program, Innovations in garden products which now includes products capable of Shredders and hedge trimmers were the providing up to 35 percent of the total en- star performers in the Power Tool Garden ergy required for heating and hot water. Product Group in 2003 and were thus also Heat pumps are a particular attractive op- the focal point of our innovative efforts. tion in areas not connected to the gas sup- The silent shredder received the Blue An- ply. They are able to supply a house with gel seal in recognition of its low noise heat and warm water throughout the year emissions and also featured prominently and reduce carbon dioxide emissions by in the “Aktion Blau” campaign launched 3 www.aktionblau.de 40 percent as compared with an oil-fired by the German Federal Environmental heating system. Agency (UBA) in summer 2003 to celebrate the 25th birthday of the Blue Angel Resource-friendly household appliances seal. Associates of the Power Tool Division A trailblazer in product-related environ- were pictured with the silent shredder in mental protection in its sector, our joint the Germany-wide photo campaign venture BSH Bosch und Siemens Haus- (www.aktionblau.de) that accompanied geräte GmbH has built its sustainability the event. strategy around the concept of efficient and economical household appliances Power tool design that set the standard worldwide for re- SUN 21 is our Power Tool Division’s pro- 3 www.sun21.de source conservation. In the period be- gram to “protect nature and the environ- tween 1990 and 2003, BSH managed to ment in the 21st century”. The extensive achieve cuts of more than 40 percent in website at www.sun21.de and events such the average energy consumption of all of as the annual environmental day, which its appliances, and of between 30 and celebrated its tenth anniversary in 2003, 50 percent in average water consumption. provide information about the program Around three-quarters of the household not only for associates, but also for suppli- appliances produced by BSH in Germany ers, customers, and the public. The envi- qualify for the European Energy Label’s ronmentally-oriented design of the divi- “A” energy efficiency rating. sion’s products also owes much to SUN 21. 27

Take-back of end of life power tools at the Willershausen service center 2001–2003 (in metric tons)

2003

2002

2001

100 200 300 400 500 600 700

For example, the fourth revised edition of Take-back system the Environmentally-Oriented Power Tool Private users are able to return end of life Discontinuation of chrome Development guideline has recently been drills or jigsaws to their specialist retailer surfaces released. The guideline’s aims include en- free of charge. Professional users can also Our security technology fire and couraging the use of environmentally- take advantage of the system at no extra smoke detector units no longer use components with yellow compatible materials wherever possible. expense, as the manufacturers involved chromed surfaces, as these One exemplary result of the guideline is meet all costs. The Willershausen recycling have been phased out in com- the Bosch rotary hammer, which features center organizes the logistics, sorting, and pliance with the requirements of the EU’s waste electrical and easily removable plug-in connections, one recovery. Virtually all parts are labeled, electronic equipment and haz- standard screw size, and clear labeling on which makes it much easier to separate out ardous substance prohibition the plastic parts. The rotary hammer also the 13 different types of material. Once directives. Instead, we are now using non-corroding alternative uses biodegradable lubricants and has no processed, the raw materials are either materials or, in exceptional components that contain cadmium. used to produce new power tools or sold cases, galvanized surfaces. The on for other industrial applications. smoke detectors are recyclable and can be sent for recovery via Recycling center for power tools certified specialist agents. Germany’s leading power tool manufac- Battery recycling turers set up a joint recycling system back The recycling center at Willershausen col- in 1993. The initiative set up a recycling lected more than 100 metric tons of bat- center under the management of Bosch at teries in 2003, around 50 percent of which Willershausen, the site of our power tools were returned together with the power service center in Germany. A total of tools collected. The number of nickel-cad- 15 manufacturers representing 23 differ- mium batteries returned has more than ent brands and more than 80 percent quadrupled since the new German legisla- of the market volume have now joined tion was introduced. The cadmium recov- the system, which returns in excess of ered from the batteries, 83 percent of 560 metric tons of old power tools to the which are suitable for recovery, is used in raw material cycle every year. The system the manufacturing of new batteries. also covers gardening tools, digital meas- urement tools, and batteries. 28 Environmental protection and products

1 “Green” energy generation with hydraulic 1 Pitch drive for setting angle control technology from Rexroth of rotor blades 2 Drive train brake for rotor braking 3 Yaw adjustment to allow for changes in wind direction

Industrial Technology

Industrial Technology is made up of the defining role in the further development of Packaging Technology, Metals Technology, eco-friendly wind power, and in making it The pitch drive Pitch drives adjust the rotor and Bosch Rexroth AG divisions. In its more efficient: generator gears, yaw gears, blades of wind turbine genera- Packaging Technology Division, Bosch pitch gears and drives, and braking units tors according to the wind manufactures fill and seal machines, car- provide complete solutions for all the rota- strength or the mains capacity. When the wind is light, the toning machines, and multi-bag packers, tional and braking movements in wind pitch drive swivels the rotor for use in the foodstuffs, confectionery, power plants. blades flat against the wind, in pharmaceuticals, and cosmetics sectors. order to maximize the power generated. In strong winds, it The Metals Technology division, set up in “Whispering” hydraulics turns the blades far enough out 2003, comprises casting and special steel Bosch Rexroth is looking to solve a classic of the wind that they produce products. Our subsidiary Bosch Rexroth dilemma with its “whispering” hydraulics only the rated output, thus pre- venting the drive train or gener- operates in the fields of industrial hy- range: the performance of hydraulic sys- ator being overloaded. And in draulics, electrical drives and controls, lin- tems can only be increased by boosting stormy conditions, the pitch ear motion and assembly technologies, the pressure applied, something that is in- drive “feathers” the blades edge-on to the wind direction, pneumatics, and mobile hydraulics. evitably linked with higher noise levels. and the system shuts down. Thanks to computer-aided modal analy- Hydraulics for wind power systems sis, it has now proved possible to harmo- One area of application where Bosch nize and ultimately reduce the overall Rexroth’s hydraulic control technology noise and vibration produced by the indi- demonstrates its value is the generation of vidual components. The year 2003 saw us renewable energy. Visitors to the 2003 augment our wide-ranging program of HUSUMwind trade fair in Schleswig-Hol- noise-reduced power units and valves by stein saw us demonstrate our comprehen- introducing a new generation of extra- sive expertise in the drive, control, and reg- silent axial piston pumps. Compared with ulation technology of wind power systems. previous models, they achieve greater effi- With its broad-based range of gears and hy- ciency while cutting noise levels sharply, draulic modules, Bosch Rexroth is playing a by up to 20 dB(A). 29

The manufacture of a cast boiler commences with the smelting procedure, which predominantly makes use of casting scrap, making possible a closed-loop recycling process. The parts of the boiler are then individually cast. 5

Packaging optimization enough to stand on shelving, rendering The majority of the Packaging Technology any further card packaging redundant. Division’s customers are in the foodstuffs They are employed primarily in the food- and pharmaceuticals sectors. The technol- stuffs and confectionery sector. ogy used for packaging milk and choco- late or tablets and capsules must first and Metal products from recycled scrap foremost guarantee the quality and pre- Our Metals Technology Division produces servation of the contents. As well as pro- most of its special steel and cast metal tecting the product, however, packaging components from recycled material. The technology also needs to minimize the special steel products are almost entirely material and energy consumed. On made from recycled scrap, while cast grounds of cost alone, the optimizing of products, such as the metal material for packaging material is a key aspect in the brake disk manufacturing, mainly consist design of cartoning or sealing machinery, of steel scrap, return scrap, and casting for instance. We already fully exploit most swarf from our own mechanical process- of the available potential here, so that in- ing operations. Among other areas, special novations can achieve only marginal im- steel and cast products are employed in provements. the construction of power-generating plant (turbine housings and shafts). The new version of our tried and tested Drinking water supply systems and waste- Type SVE 2510 bag form, fill, and seal ma- water disposal are other applications in chine is an exception to this rule, however, which our cast iron pipe products are em- as it allows us to save relatively high levels ployed. of packaging material. Thanks to stronger crimps, the bags produced are stable 30

Global environmentally-compatible manufacturing

A steering committee coordinates the worldwide implementation of environmental policy at all Bosch’s manufacturing sites. Some topical examples from the regions will serve to illustrate the broad span of production and site-related environmental protection involved. They typify our high standards in the fields of energy and waste management, wastewater treatment, and the utilization of rainwater, site contamination and emission protection, hazardous substance management, and distribution. Awards for achievements in environmental protection and our participation in World Environment Day are evidence of the great commitment demonstrated “on the ground.”

7 UNEP’s World Environ- ment Day 2003 prompted the plants belonging to the Indian regional company MICO to organize a wide range of environmental protection activities. 31

Energy consumption of Bosch manufacturing sites in Europe 2001–2003* (in megawatt hours)

Electricity 2003 2002 2001

Natural gas 2003 2002 2001 Smelting iron in the new Heating oil 2003 medium frequency furnaces 2002 at Bosch Rexroth 5 2001

District 2003 heating 2002 2001

650,0001,300,000 1,950,000 2,600,000 3,250,000

* 2003 includes Buderus AG for the first time

Europe

Rainwater utilization in Ansbach naces. Instead of coke, electricity now pro- Our new development center in Abstatt, vides the power needs of the new fur- Germany, is not the only one of our facili- naces, significantly reducing not just dust ties to protect valuable water resources by emissions, but also the levels of fumes and utilizing rainwater. At another German noise produced at Lohr. The site has a plant in Ansbach, for example, we use it to dedicated project group to investigate en- cool the power generation and manufac- ergy-saving and CO2 reduction. It has turing plants. This is why rainwater collec- drawn up optimization measures aimed at tion plant was installed while expanding improving heat insulation for the build- the heat exchanger system in 2002, allow- ings, utilizing waste heat in the produc- ing the use of around 8,000 cubic meters tion of compressed air, as well as intro- of precipitation annually. The investment ducing energy-saving lamps for lighting will pay for itself in five years, bringing systems. annual savings on water costs totaling nearly € 18,000. Dry machining in Bamberg Bosch has already successfully switched to Energy requirements in Lohr dry machining at a number of its sites. Some 20 percent of Bosch Rexroth’s entire The benefits are obvious, since drilling, global energy needs are attributable to a milling and turning can all be performed single site, with iron-smelting operations without the need for cooling lubricants. at the foundry of the facility in Lohr, Ger- This also does away with the laborious many, consuming 90 gigawatt hours of preparation of these lubricants, and the energy a year. New medium frequency large plants required. Several automatic furnaces have been in operation there lathes at the Bamberg plant in Germany since mid-2003, bringing to an end the have been converted in the course of on- 200-year era of coke-fired cupola fur- going upgrading. 32 Global environmentally-compatible manufacturing

Waste volumes from Bosch manufacturing sites in Europe, 2001–2003* (in metric tons)

Waste for recovery 2003 2002 2001

Waste for disposal 2003 2002 2001

65,000 130,000 195,000 260,000 325,000 390,000

* 2003 includes Buderus AG for the first time

Biological soil clean- up at the Engels site 3

Waste and hazardous substance the local windshield wiper manufacturing management in Bursa shop had had to be pretreated with sol- Turkey With a workforce of around The three plants which manufacture com- vents, using some 50 metric tons of CHCs 6,600 at four manufacturing ponents for the automotive industry in every year. sites in Turkey, Bosch is one of Bursa, Turkey, operate according to Bosch’s the country’s largest non-indigenous employers. The year integrated management system, and in Pollution remediation at Engels 2001 saw the inauguration of a 2003, their local management systems The removal of residual contamination at center of competence for diesel were certified to ISO 14001. Waste and our sites is a continuous process. Ninety fuel injection and a new manufacturing plant for unit injectors hazardous substance management at- percent of the manufacturing sites in Eu- at the Bursa facility. Bursa is a tained the same high standard. The year rope have already been investigated for fast-growing site, currently pro- 2003 saw the installation of a new surface residual pollution. Where necessary, reme- viding employment for some 3,000 people. gas container and storage tank at the diation measures have been initiated. The diesel systems plant, while a new waste most frequent contaminants identified by storage facility went into operation at the the analyses included oils, CHCs, and chassis systems facility. In the latter, soil heavy metals. This was true, for example, and groundwater are protected by the spe- of our spark plug factory in Engels (Rus- cial floor lining, enclosed leakage chan- sia), where soil contaminated with oil was nels, and the separate collection of oil. recultivated biologically using bacteria and mineral supplements. In its modern- Substitution of CHCs in Tienen ization of the plant itself, Bosch has set By 2005, all sites around the world must benchmarks in Russia, for example, a new have completed the replacement of chlori- neutralization system featuring a closed nated hydrocarbons (CHCs), which dam- water purification loop has allowed the age the ozone layer. The Belgian facility in previously high water consumption to be Tienen is one example, having completed cut by nearly 90 percent. the switch to solvent-free alternatives in January 2003, enabling the closure of its last CHC plant. Until then, rubber pads in 33

7 Wastewater treatment reduces fresh water requirements at many sites. At the Technical Center in Shanghai, the water collection reservoir forms part of the garden layout.

Asia, Africa, Australia

Distribution optimized soil vapor are first extracted by suction, Over recent years, truck-based transporta- and then cleaned by means of activated- Japan tion in Germany has been reduced with charcoal filters (stripping). In its third-largest overseas mar- the aid of the regional shipping compa- ket, Bosch operates 25 sites nies. In Japan too, Bosch is pursuing the Water treatment in Shanghai employing some 12,000 people. In Japan, we were the first sup- goal of minimizing traffic-related CO2 The technology center of our joint ven- plier to provide indigenous au- emissions. Our aim for 2002 was to cut ture United Automotive Electronic Sys- tomobile manufacturers with fuel consumption by 10 percent compared tems Co. Ltd. in Shanghai leads the field in second-generation common rail systems. Yokohama is the site with the previous year. By optimizing China in exhaust emission tests, which are of the Bosch Group’s largest transport routes, both to customer loca- carried out on behalf of automobile man- overseas research and develop- tions and between the plants, Bosch actu- ufacturers. The site also plays a pioneering ment center for diesel and gasoline systems. ally managed to exceed its CO reduction role on the water conservation front, col- targets by an impressive 30 percent. Thanks lecting recycled water in a reservoir and to the reuse of the wooden pallets used for using it to irrigate the site’s grassed areas. freight purposes, transport-related waste In 2003, this initiative saved more than fell by half. 7,500 cubic meters of water, around two- thirds of the fresh water required for the Soil vapor remediation in Higashi planted areas. The Shanghai site was first Matsuyama certified to ISO 14001 as long ago as 1998. Investigation of the groundwater at the two Japanese facilities in Higashi Matsuyama revealed contamination with volatile chlo- rinated organic compounds such as tri- chloroethylene. Remediation measures were immediately set in motion, using a procedure whereby the groundwater and 34 Global environmentally-compatible manufacturing

Water consumption at MICO manufacturing sites in India, 2001–2003 (in cubic meters)

From public 2003 supply 2002 2001

From own 2003 sources 2002 2001

125,000 250,000 375,000 500,000

7 Each day, wastewater treatment plants at all the plants belonging to our Indian regional company MICO process more than 600 cubic meters of wastewater for reuse. As here in Bangalore, they contribute to substantial savings in fresh water requirements.

World Environment Day in India planting drive. Banners over the entrances Every year, some regions of India are con- to the Jaipur plant also reminded the local Australia and South Africa Bosch operates just one facility fronted with serious water supply prob- population about the activities surround- in Australia and South Africa re- lems, and so the economical and efficient ing World Environment Day, while in Na- spectively. As in Germany, cli- use of water is a vital issue for our Indian ganathapura, the occasion gave rise to a mate protection is an important objective here too: accordingly, regional company Motor Industries Co. photo and “good ideas” competition cen- the Australian body electronics Ltd. (MICO), which operates four manu- tering on water conservation. During plant in Clayton is taking part in facturing facilities. For MICO, the United lunch breaks at the latter facility there “Greenhouse Challenge”, the Nations’ World Environment Day, held were street theater performances aimed at government’s CO2 reduction program. The South African under the banner “Water – Two billion raising associates’ awareness of the need to plant at Brits, which produces people are dying for it” on June 5, 2003, conserve precious water, and activities electronic control units, starters, and ignition coils, was the ideal opportunity to launch an in- culminated in the distribution of cotton gained ISO 14001 certification formation campaign at all its plants. bags bearing the slogan of World Environ- in 2002. ment Day to the plant’s workers. “Water – every drop counts” – the campaign Saving water in Bangalore To accompany the campaign, the compa- Despite the growth in its sales during the ny printed around 10,000 copies of the in- period, the plant in Bangalore succeeded formation booklet “Water – every drop in cutting its consumption of fresh water counts,” and distributed them to all as- by a third between 1998 and 2003, from sociates. Posters were put up in offices, 855 to just 570 cubic meters a day. The site manufacturing shops, and staff restau- makes use of many advanced wastewater rants as part of a month-long awareness- treatment techniques. For example, the raising initiative. The plants used World conditioning of wastewater from manu- Environment Day and the accompanying facturing and sanitation allows it to be re- campaign as the framework for a whole circulated for reuse many times over. range of activities. Plant management in Bangalore received its ISO 14001 certificate at a high-profile official ceremony, and the facility in Nashik organized a tree- 35

The multinational corporations in Brazil are a » very important fraction of the local industry and are treated like Brazilian companies. What we do expect from them is that the technology they develop and use in their mother countries would be transferred through a process of building up the quality of local companies – with local engineers and local people. What we do expect as well is that multinational companies will also Prof. Dr. José Goldem- bring their environmental standards. My impres- berg, Secretary for the sion is that nowadays many multinationals have Environment, São Paulo already decided that this is a good policy for State (Brazil) them to follow. «

The Americas

Brazil “Zero waste” in Brazil Environmental prize for San Luis Potosí After the U.S., the Bosch The complete recovery of all waste is the In 2002, the Mexican environmental au- Group’s second largest over- aim of “Descarga Zero,” or “zero waste”, thority PROFEPA awarded the country’s seas market is Brazil, where it is one of the leading suppliers of the environmental program conducted by San Luis Potosí site its Clean Industry vehicle equipment. The largest four sites in Brazil and one in Argentina. Award. The body particularly lauded the facility in Brazil, Robert Bosch Since 2000, we have been implementing a comprehensive environmental program Ltda, is headquartered in Campinas and there are further wide-ranging raft of measures. These in- drawn up following an environmental au- manufacturing facilities in Aratú, clude both organizational controlling dit, while the sanitary wastewater plant São Paulo, and Curitiba, provid- measures and cost-center-related waste and the remediation of oil-contaminated ing employment for some 10,200 people. documentation. We record all waste flows soil earned praise too. The site is also evi- and stringently separate waste. Liquid dence that improved environmental pro- waste such as emulsions or chemical bath tection can have a positive effect on occu- agents are processed, and mineralbearing pational safety as well: the plant has been waste is reused for road construction. accident-free for three-and-a-half years.

We channel metallic raw materials into re- Occupational safety prize for Albion covery processes, while wood waste is re- In 2003, the Albion site became Bosch’s cycled or thermally reprocessed. Interim first U.S. plant to receive the OSHA Star figures for the period from 2000 to 2002 Award, a prestigious award recognizing reveal a 57 percent reduction in waste occupational safety measures. The Occu- volumes passed on for landfill, and plans pational Safety and Health Administra- call for a further 50 percent cut by 2005. tion (OSHA) makes the award to compa- In recognition of its waste management nies exceeding its standards on their own achievements, the Curitiba plant has sev- initiative. The effectiveness of these stan- eral times won the environmental prize dards is borne out by the fact that compa- awarded by a trade journal. nies participating in the OSHA occupational safety program record up to 80 percent less downtime. 36

Corporate citizenship

Bosch acknowledges its obligation to play an active role in society – an obligation stemming from its founder, its corporate constitution, and its values. Our commercial success directly benefits the community: the annual dividend of the Bosch Group funds the Robert Bosch Foundation, whose charitable projects help to overcome social challenges. We place great importance on harmony between our entrepreneurial actions and the interests of society as a whole. Bosch and its associates involve themselves actively in social and cultural projects at many sites across the world.

The Robert Bosch Founda- tion translates its founder’s will into modern projects. It encourages young people to assume responsibility. 3 37

Aid granted by the Robert Bosch Foundation by program area (grants for 2003)

Science in modern society, research at the € 4.98 m foundation institutes Health, humanitarian aid € 3.54 m International understanding I € 8.39 m International understanding II € 8.26 m Youth, education, civil society € 7.94 m Investment in the Robert Bosch Hospital € 9.73 m Promotion of research at the Robert Bosch Hospital € 4.90 m and the institutes Non-autonomous foundations € 0.96 m € 48.70 m

Projects supported by the Robert Bosch Foundation

The Robert Bosch Foundation seeks to vironmental groups, youth clubs, and ed- develop new approaches to the issues and ucational institutions, which the founda- € Report of the Robert Bosch problems confronting society by devising tion supported with grants of 265,000 Foundation progressive concepts that are put into ef- last year. In 2003, it hosted its first event in The Robert Bosch Foundation fect in model development projects in five the new representative office of Robert issues an annual report reflect- ing its charitable work and the program areas. Apart from the resources Bosch GmbH in Berlin, devoted to the re- focus of its support activities channeled into the foundation’s own lationship between Europe and the U.S.. and programs, and setting out Robert Bosch Hospital and healthcare More than 200 guests gathered to discuss how its funds are used. In 2003, the Foundation granted a total projects, the majority of the funds made “Tomorrow’s Europe in the transatlantic of € 49 m to 802 projects. available in 2003 went to projects to pro- context” with former German President 70 percent of the projects sup- mote international understanding and Richard von Weizsäcker and Robert Bosch ported were international in nature, with 55 percent of the initiatives focusing on youth, education, Foundation scholars. funds going to recipients out- and citizenship. side Germany. Citizenship for young people International understanding The Robert Bosch Foundation deliberate- The Foundation focuses on a number of ly targets young people by setting up objectives, including fostering relations scholarship programs and competitions, between people in Germany, the U.S., such as the “Youth debates” contest. As an Turkey, France, and the nations of central important prerequisite for genuine partic- and eastern Europe. In 2003, the Founda- ipation in civic society, students nation- tion sought to strengthen fellowship be- wide hone their skills in public speaking tween German towns and communities and debating. At a nationwide final in and their counterparts in the Czech Re- Berlin in May 2004, a jury then selected public and Poland, setting up a competi- the winners. Students were also invited to tion focusing on partnerships between a series of debates on social issues at the communities and their citizens. This gave Robert Bosch Foundation’s headquarters rise to cross-border projects involving en- in Stuttgart. 38 Corporate citizenship

Part-time associates at Bosch Germany 2001–2003 (in percent)

2003

2002

2001

24 6 810121416182022 Tot al Women Men

Primavera’s commitment also extends to supporting the “Tia lleide” children’s center in Campinas (Brazil). 3

The company and society

It is important for the future that women Bosch as a partner in the community – and not only mothers – enjoy improved Bosch endeavors to maintain good rela- Principles of Social Responsibility opportunities to pursue their professional tions with its neighbors and the sur- At the start of 2004, the Board goals. Increasingly, too, men want to play rounding community, as evidenced by of Management of Robert Bosch a more active role in family life. Farmington Hills in the U.S., where we GmbH and the associate repre- sentatives signed a set of joint have operated a technical center since principles of social responsibili- Combining family and career 1983. With some 1,340 associates, Bosch is ty. The ten principles, which are Programs that make it easier to combine one of the largest local employers, and an based on the core labor standards of the International Labor career and family life are a vital element of important partner in other respects with- Organization (ILO), address is- Bosch’s personnel policy. They include in the region: the recent expansion of the sues including human rights, flexible working models such as part-time buildings alone generated orders worth equality of opportunity, the rights of children, and fair em- work, teleworking, or job-sharing, which some 79 m dollars for the local economy. ployment conditions. The princi- are regulated by means of company agree- Bosch gets involved in the community by ples continue our long tradition ments. Around five percent of the work- fostering charitable projects, especially in of assuming our responsibilities toward society, and are to be im- force in Germany currently practice some the field of education. On the occasion of plemented worldwide through- form of part-time working, and the trend the facility’s 20th anniversary in January out the company. is an upward one. There are internal and 2003, the local chamber of commerce cross-company mentoring programs for honored our commitment with a “Good women in particular, and a women’s net- Partnership” award. 3www.bosch-environment.com work has been active since 1995. > responsibility Further education is offered to new par- ents, continuing after they return to work. Bosch helps to organize childcare facilities, working with independent family service facilities. We have also set up an intranet- based childcare exchange. 39

Some of the challenges faced in fostering greater » community development include the need for companies to show complete commitment, especially the large scale companies which have greater impact in their activities. This implies greater collaboration and coordination from business, civil society and the public sector. All leaders need to recognize that there is a real business case for corporate responsibility, in- Deepak Sood, Head of creased expectations of their customers, pres- the State Office of the sure groups, business partners, government Confederation of Indian 8,000 people took part in the and shareholders. Businesses could achieve Industry in Karnataka “Nashik Run,” raising around (India) € 100,000 for charity. 5 their financial targets whilst still having a positive impact on the social and natural environ- ments of which they are a part. «

Social involvement

Given its tradition, Bosch welcomes the simple crèche in a shack has developed active participation of its associates in wel- over the years into a children’s center sur- Memberships fare activities. Not only does this demon- rounded by grassed areas, where trained Robert Bosch GmbH has been strate an awareness of genuine values, and staff offer their charges a wide range of a member of the German Busi- personal initiative, but it also contributes educational opportunities. The staff looks ness Ethic Network (DNWE), the national arm of the Euro- to society’s acceptance of the company. after an average of 500 children and pean Business Ethics Network youngsters between three and 18 years of (EBEN), since 1995. Since its Associates aid children in need age, providing tuition in sport, music, and inception in the year 2000, Bosch has belonged to econ- Back in 1990, Bosch associates in Ger- computing. sense, a forum for sustainable many set up an initiative known as Pri- development, which currently mavera, to help needy children at Bosch Social initiatives in India comprises 24 leading German companies. Group locations around the world. Indi- In India, the Bosch company MICO has vidual associates, departments, and many been arranging its own fund-raising cam- clubs within the company get involved on paigns and aid projects for some years a voluntary basis by collecting money or now. In 2004, the plant at Nashik orga- organizing benefit events. Such activities nized its second Nashik Run, a benefit raised € 213,971 in 2003, money which event that attracted 8,000 participants. To- benefited 18 projects, supporting child gether with donations from other compa- daycare centers, children’s homes, orphan- nies, a total of € 100,000 was raised for ages, and schools for the disabled, primar- good causes in the community. In light of ily in Brazil and India. its great success, the Nashik Run will take place every year from now on. For MICO, The Primavera project Centro Promotion- the reason for this commitment is simple: al “Tia lleide”, for example, aims to offer “We do what we can to alleviate need, and new hope and better educational oppor- in doing so we live up to the company’s tunities for youngsters from a shanty town newly formulated values”. in Campinas, Brazil. What was initially a 40 Global environmental data

Global environmental data

The present report is the first time we have pub- dated affiliates. Buderus AG is also included for lished consolidated environmental data for all the first time. A total of almost 50 manufactur- Bosch manufacturing sites worldwide, broken ing sites operated by BSH Bosch Siemens Haus- down for the three large business regions of Eu- geräte GmbH and ZF Lenksysteme GmbH are rope, the Americas, and Asia-Pacific. Here, the not included, however, as they are dealt with in reporting and the environmental program en- separate environmental reports. Details relating compasses some 200 sites belonging to Robert to companies in which we have a minority inter- Bosch GmbH, its subsidiaries, and the consoli- est have likewise been excluded.

Sites by continent/region

117

43 39 41

Material and energy flows

We have employed a new environmental infor- AG. However, increased production and sales al- mation system to gather data relating to the ma- so accounted for a small proportion of the rise. terial and energy flows of all the manufacturing While wastewater volumes grew more or less in sites of the Bosch Group worldwide. The year proportion to the increase in sales, sites were 2003 saw a marked increase in energy and water able to achieve modest improvements in effi- consumption as well as in the volumes of waste- ciency with respect to energy and water con- water and other waste generated, a fact attribut- sumption, emission levels and, in particular, able almost entirely to the inclusion of Buderus waste volumes.

Total Total of which of which of which Worldwide Worldwide Europe America Asia-Pacific 2003* 2002 2003 2003 2003 Global sales, € m 36,357 34,977 67.5 % 18.1 % 14.4 % Total associates 231,600 224,341 72 % 15 % 13 %

Input Energy consumption (MWh) 7,307,817 5,283,577 77 % 11 % 12 % Electricity 4,084,583 3,398,288 74 % 16 % 10 % Natural gas 2,102,726 1,227,378 88 % 9 % 3 % Heating oil 281,579 215,488 65 % 1 % 34 % District heat 348,358 346,458 35 % 0 % 65 % Coke, coal 429,435 36,888 100 % 0 % 0 % Miscellaneous 61,137 59,076 42 % 8 % 50 % Water consumption (m3) 22,194,575 18,046,091 79 % 9 % 12 % From public supply 8,931,400 8,559,268 61 % 15 % 24 % From own sources 13,281,175 9,4 86,823 92 % 4 % 4 %

Output Atmospheric emissions (t)

CO2 623,615 308,341 87 % 6 % 7 % CO 89 56 82 % 7 % 11 %

NOx (as NO2) 727 445 84 % 8 % 8 %

SO2 91 68 67 % 1 % 32 % Wastewater (m3) 14,687,290 10,368,184 77 % 9 % 14 % Domestic wastewater 4,085,051 3,872,801 63 % 14 % 23 % Untreated process wastewater 7,386,218 4,463,765 95 % 2 % 3 % Treated process wastewater 3,216,021 2,031,619 52 % 18 % 30 % Waste (t) 916,840 723,824 67 % 29 % 4 % Waste for recovery 494,131 383,531 79 % 17 % 4 % Waste for disposal 375,716 321,621 48 % 49 % 3 % Demolition waste 46,994 18,672 82 % 3 % 15 %

*2003 includes Buderus AG for the first time 42 Global environmental data

Energy consumption Energy consumption (in gigawatt hours) Overall energy consumption includes electricity, natural gas, heating oil, district heating, coke and 2003* other energy sources (miscellaneous). In 2003, the total figure rose – mainly due to the integra- 2002 tion of Buderus – by 38 percent, to 7,308 GWh. 2001 The portion of total energy consumption ac- 1,200 2,400 3,600 4,800 6,000 7,200 counted for by electricity fell by some 8 percent compared with 2002, while the figure for natural Electricity Natural gas Heating oil District heating Coke, coal Miscellaneous gas rose by around 6 percent to 29 percent. *2003 includes Buderus AG for the first time

Water consumption Water consumption (in millions of cubic meters) The inclusion of Buderus AG was also reflected in the figures for water consumption, which in- 2003 * creased by 23 percent to 22.2 million cubic meters. We take more than half our water needs 2002 from our own sources, and obtained less from 2001 the public supply network than in the previous 4 8 12 16 20 24 year. Rainwater utilization, closed-loop circula- tion with water treatment, and other measures Obtained from public supply From own sources *2003 includes Buderus AG for the first time adopted by Bosch all contribute to water conservation.

CO2 emissions (from heat use) CO2 emissions (in thousands of metric tons) CO2 emission levels are calculated from the figures for heat consumed. The heat used at Bosch 2003 * is derived from natural gas (65%), coke/coal (13%), district heating (11%), and heating oil 2002 (9%). Emissions resulting from the generation 2001 of district heating are not taken into account

110 220 330 440 550 660 when calculating CO2 emission, as they do not arise on Bosch premises. *2003 includes Buderus AG for the first time

Use of CHCs Use of CHCs (in metric tons) The planned worldwide phasing-out of chlori- nated hydrocarbons (CHCs) at Bosch provides 2003 * for their gradual replacement by 2005. We have already succeeded in cutting CHC consumption, 2002 which fell from 1,100 to 372 metric tons between 2001 1998 and 2002. Another eight sites ceased using 80 160 240 320 400 480 CHCs during the period under review, reducing consumption further by approximately 28 per- *2003 includes Buderus AG for the first time cent to 266 metric tons. The largest remaining consumer (124.5 metric tons) is the Indian regional company MICO, whose plants are likewise set to discontinue CHC use by 2005. 43

Wastewater Wastewater (in millions of cubic meters) Wastewater comprises domestic wastewater and treated or untreated process water. We were able 2003* to achieve a modest reduction in domestic wastewater volumes, while the increase in the amount 2002 of process wastewater is largely attributable to 2001 the consolidation of Buderus AG. 2.5 5.0 7.5 10.0 12.5 15.0

Domestic wastewater Untreated process water Treated process water *2003 includes Buderus AG for the first time

Waste Total volume of waste (in millions of metric tons) A total of 916,840 metric tons of waste was generated during 2003, an increase accounted for by 2003* the inclusion of Buderus AG. Meanwhile, waste- cutting measures such as the “Zero Waste” pro- 2002 gram at the sites in Brazil and Argentina helped 2001 partially to offset this increase. The proportion 0.2 0.4 0.6 0.8 1.0 1.2 of hazardous waste stands at around seven percent. Waste for recovery Waste for disposal Demolition waste *2003 includes Buderus AG for the first time

Environmental protection costs and investment Ongoing expenditure according to field of activity in Germany 2002 (total € 53 m) We record current expenditure on environmental protection and investments related to environmental issues according to the provisions of the German law on statistics. Due to a change in Waste management 30% official data collection procedures, collation of Soil and the figures for 2003 will take place later than water protection 47% Noise abatement 1% usual. During 2002, ongoing expenses for environ- Air purification16% mental protection at all German sites amounted Nature conservation to some € 53 m. Most of the € 7 m investment and landscape preservation1% spend went into the protection of soil and water. Soil remediation5%

Fire protection and emergency control Plant fire and rescue operations 2003 in Germany With a total of 7,285 emergency deployments in 2003, Bosch’s plant fire and rescue services in Germany were called upon more often than in the previous year, an increase attributable to the data for Bosch Rexroth being incorporated for the first time. Requests for technical assistance were the most frequent reason for attendance, Fires 4% False alarms 39% with 3,285 calls, while 2,828 false alarms were Technical recorded during the period under review. The assistance 45% service extinguished 258 actual fires. Ambulance service 12% 44 Global environmental data | Environmental program

Occupational safety Incidence of accidents at Robert Bosch GmbH in Germany (number of occupational accidents) Last year, the number of reportable accidents at work fell once more, from 324 to 296, none of 2003 which were fatal. Measured against the figures for occupational accidents per 1,000 employees 2002 of the comparable industrial sector, the Robert 2001 Bosch GmbH figures of 5.3 in 2002 and 4.6 in 70 140 210 280 350 420 2003 were far better than the 18.98 average incidence of accidents (2002). The comparative figure for 2003 was not available at the time this report went to press.

A new occupational safety logo was introduced in the course of the international harmonization of Bosch’s safety standard in 2004. It symbolizes the associate, and the protection they are to be afforded during all their activities, and can be found on training material, signs, and other appropriate places.

Environmental protection objectives of the Bosch Group

The company’s environmental program sets out how well the objectives of previous years were at- objectives, actions, and deadlines for the coming tained. The manufacturing sites derive their own years. It is based on the principles for occupation- operational goals and actions from the manage- al safety and environmental protection drawn up ment objectives that have been set out. by corporate management, and also documents

Objective Date Status Actions and explanatory notes Page Environmental management system Complete uniformity of Bosch’s 2005 For historical reasons, there are many environmental 11 internal environmental protection and protection and occupational safety regulations within occupational safety regulations the company. The Steering Committee is reformulating (Bosch Standard). the individual rules. Certification of all Bosch sites to End of i To date, 132 Bosch sites, including all facilities belonging 16 ISO 14001 2003 to the Automotive Technology Business Sector, have been certified, 111 of them by certification bodies. 2005 Certification of the remaining sites according to a formalized plan. The plan for sites in Asia will be subject to further development in light of growth in the region. Increase in the proportion of integrated 2006 Auditor training courses to comply with a new, modular 16 environmental, quality and occupational concept safety audits to 30 % Site-specific adaptation of the integrated 2002 i Adoption and augmentation of the company-wide 15 management system (occupational safety, management manual “Management System for Quality, fire and environmental protection, quality) Safety, Security and the Environment” by the business worldwide sectors and sites Introduction of a uniform indicator system 2004 p Introduction of uniform environmental protection evaluation 16 for site-specific implementation of Bosch’s at all sites worldwide, according to site-specific indicators. enterprise-wide environmental objectives Investigation of specific environmental indicators 45

Objective Date Status Actions and explanatory notes Page Establishment of a combined internal 2004 Development of a web-based environmental information 16 reporting system at Bosch for occupational and reporting system for all manufacturing sites. safety, fire and environmental protection Introduction of a new database developed on the basis of the existing energy and material flow register Integration of environmental protection 2005 Similarly to the integration of environmental protection into 17 into supplier audits the assessment of supplier potential, supplier audits are to include the systematic examination of environmental protection factors from 2005.

Product-related environmental protection Implementation of the EU’s WEEE, 2004 Development of a disposal concept for the Thermo- 13 RoHS, and ELV Directives technology Division. Intensification of the DfE program and the exchange of 19 information within the DfE network Improvements in recycling capability Ongoing p Training in environmentally-oriented product design con- 19 of Bosch products ducted according to a seminar concept revised in 2003 Substitution of hazardous substances 2003 i Implementation of restrictions on substances in the DfE 19 in new products (chromium VI, lead, Program. Bosch Standard N2580 imposes corresponding cadmium, mercury) requirements on our suppliers. Contribution to 25 % reduction in average 2008 p New product developments help meet the commitment by 22, 25 automobile CO2 emissions ACEA (European Automobile Manufacturers Association)

to cut vehicle CO2 emissions to an average of 140 g/km. Reduction in diesel vehicle exhaust 2005 Further development, to series production, of the sintered 21 emissions metal particulate filter for diesel engines

Production-related environmental protection

Preparation for EU-wide CO2 emissions 2005 Determining of emission authorizations for the plants 14 trading affected. Improvements in energy efficiency Complete substitution of CHCs at 2005 p Between 1998 and 2003, Bosch reduced its use of CHCs 32, 42 all sites worldwide from 1,100 to 266 metric tons. During the reporting period, eight sites ceased using CHCs. Measures aimed at the gradual replacement of CHCs have been defined at the remaining plants. Reduction of hazardous substances 2004 Establishment of a cross-site hazardous substance manage- 32 and risk potential ment system, with a central archive for safety data sheets. Preparation of the Corporate Directive “Hazardous Substances” Investigate and remediate contamination Ongoing p Around 90% of the manufacturing sites in Europe have 32/33 at the sites been investigated for contamination. The 1998 figure was approximately 70%. Further development of waste manage- 2005 Integration of Bosch Rexroth into waste statistics and 35 ment into waste disposal contractor audits. Reorganization of waste disposal contractor audits Reduction in use of resources (energy Ongoing Actions are carried out on a site-related basis. 31–35 consumption, water use, volumes of wastewater and waste)

i Objective achieved p Work in progress s Objective not achieved New objective 46 Contact details and addresses | Publication details

Contact details and addresses

For current and more detailed information on environmental protection, visit our environment portal: www.bosch-environment.com

For general questions about environmental protection at Bosch and the Environmental Report, contact:

Robert Bosch GmbH Postfach 10 60 50 Z4U Ralph Ruhrmann D-70049 Stuttgart [email protected] Phone +49 711 811-6894 Fax +49 711 811-7083

Contacts on environmental protection issues in the regions and at affiliated companies

Bosch Group in France [email protected] +33 4 7877-3806 Bosch Group in China [email protected] +86 21 68881111-1830 Bosch Group in India [email protected] +91 80 2299-2939 Bosch Group in Japan [email protected] +81 493 22-1550 Bosch Group in North America [email protected] +1 574 237-5616 Bosch Group in South America [email protected] +55 19 3745-2811

Bosch Rexroth AG [email protected] +49 9352 18-3157 BSH Bosch und Siemens Hausgeräte GmbH [email protected] +49 89 4590-2195 Buderus AG [email protected] +49 6441 49-2184 ZF Lenksysteme GmbH [email protected] +49 7171 31- 2324

Further information about the company is available in the Annual Report 2003 or the brochure “Bosch today,” and on the internet at: www.bosch.com

The above publications and this Environmental Report are available both in English and German. They can be requested by e-mail from: [email protected] 47

Publication details

Published by Robert Bosch GmbH Robert-Bosch-Platz 1 D-70839 Gerlingen-Schillerhöhe

Postal address: Postfach 10 60 50 D-70049 Stuttgart Phone +49 711 811-0 Fax +49 711 811-6630 www.bosch.com

Responsible for content Corporate Department for Environmental and Fire Protection, Safety Head: Hartmut Müller

Text and editing Sabine Braun, Jutta Hofmann, Hartmut Müller, Ralph Ruhrmann, Dr. Ralf Weiss

Design and layout akzente Kommunikationsberatung, Munich and Stuttgart

Photography Robert Bosch GmbH Robert Bosch Stiftung GmbH Volkswagen AG (Page 12)

Typesetting, printing Grafisches Zentrum Drucktechnik GmbH, Ditzingen-Heimerdingen

Bound by Thalhofer Grossbuchbinderei GmbH, Schönaich Robert Bosch GmbH Z4U Postfach 10 60 50 D-70049 Stuttgart Germany Phone +49 711 811-6894 Fax +49 711 811-7083 www.bosch-environment.com

Printed in Germany 1 987 784 073 Z4U 5/04-1E