Environmental Statement

Sorocaba 2019 Contents

Contents

General Part

Foreword...... 3 Message from the shareholders...... 3 Introduction by the Chief Executive Officer...... 5

Company Portrait...... 7 The Schaeffler Group...... 7 Customer – Plants and F&E centers worldwide...... 11

Environmental Protection Worldwide...... 13 Standards on Environmental Protection and Occupational Safety...... 14 Schaeffler Environamental, Health and Safety Policy...... 15

Environmental Communication...... 16

Award...... 17

Environmentally Friendly Products...... 18

Location Part

Location...... 19 Introducing the Location in 2019...... 19 Changes at the Location...... 21

Legal Requirements...... 23

Direct Environmental Impacts...... 25

Indirect Environmental Impacts...... 34

Key Indicators according EMAS III...... 36

Environmental Indicators...... 39

Objectives and Programs...... 42 Improvements not included in annual target planning...... 43

Validation and Responsibility...... 48 Foreword

Message from the shareholders

Maria-Elisabeth Schaeffler-Thumann | Georg F. W. Schaeffler

3 Foreword

Schaeffler, which is based in Herzogenaurach (Germany), is a leading technology company and supplier to the automotive sector and around 60 further industrial sectors. The listed family-owned company has around 87,700 employees worldwide who, with their expertise, reliability, and commitment, lay the foundations for the company’s success.

The highest quality, outstanding technology, and strong innovative ability represent the basis for the Schaeffler Group’s lasting success. Sustainable management is a success factor for both the company and for our established corporate culture, which we as family shareholders represent.

For this reason, the consideration of ecological and social criteria has been an integral part of our corporate guidelines for many years.

In particular, the Schaeffler Group made a commitment to comply with a standardized, worldwide environmental management system that fulfills the highest requirements more than 20 years ago. This system has been continuously developed and now includes the topics of environmental protection, health protection, and occupational safety, which the company implements in a consistent manner.

All manufacturing locations have been validated according to the stringent EMAS regulations and certified accordingto ISO 14001 and ISO 45001 with regard to occupational safety. In the field of environmental protection, Schaeffler is playing a leading role on an international level and received an award from the European EMAS Commission in 2015.

We are delighted that the 2020 environmental statement documents the successful connection between cost-effectiveness, environmental protection, and social factors inside and outside the company.

Yours,

Maria-Elisabeth Schaeffler-Thumann Georg F. W. Schaeffler

4 Foreword

Introduction by the Chief Executive Officer

Klaus Rosenfeld

5 Foreword

The world is moving. And it is clearly getting faster by the day. Ongoing climate change, increasing urbanization, globalization, and digitalization will all permanently influence and change the ways in which we live and work.

These are changes that we want to play an active part in shaping. Our “Mobility for tomorrow” strategy was put in place in order to allow us to achieve this goal. Based on the four megatrends listed above, Schaeffler is focusing on four areas across divisions and regional borders: “Eco-Friendly Drives”, “Urban Mobility”, “Interurban Mobility”, and “Energy Chain”. As a globally active automotive and industrial supplier, we provide our customers with products, system solutions, and services that help to make our world cleaner, safer and smarter.

Within the Schaeffler Group too, however, sustainable management along the entire value-added chain and social responsibility are integral parts of the corporate culture that we practice. We place great emphasis on combining economic success with acting responsibly towards our customers, the environment, and our employees. We provide a safe working environment for our employees in addition to active health protection measures and services. This has its key points firmly anchored in our corporate code of conduct.

Group-wide governance guarantees that our guidelines and high standards in the fields of environmental protection, health protection, and occupational safety apply at every Schaeffler location around the world. Every one of the Schaeffler Group’s manufacturing locations works with environmental management systems according to EMAS or ISO 14001. We are always working to further develop these, and we prioritize Europe’s stringent EMAS standard as the basis wherever possible. We do not differentiate between our plants in Germany and those in other countries in Europe, the USA, or Asia; after all, we believe there is only one environment – one that is global and worth protecting. When it comes to fulfilling high environmental and social standards, we also actively involve our suppliers.

As a global family-owned company, we are joined by four central values – sustainable, innovative, excellent, and passionate – and these are the expression of our responsibility towards the environment and our customers and employees, as well as towards future generations. Our aim is to keep continuously developing Schaeffler by not losing sight of our vision, which makes a future worth living possible.

Klaus Rosenfeld Chief Executive Officer, Schaeffler AG

6 Company Portrait

The Schaeffler Group

The Schaeffler Group is a global automotive and industrial and cross-national cooperation, this creates a high degree supplier. Top quality, outstanding technology, and excep- of flexibility for solving new customer requirements and the tionally innovative spirit form the basis for the continued opportunity to anticipate developing trends at an early success of the company. The Schaeffler Group identifies key stage. As a global development partner and supplier, trends early on, invests in researching and developing new Schaeffler maintains stable long-term relationships with forward-looking products, and sets new standards in tech- its customers and suppliers. In addition to Schaeffler AG, a nology. Extensive systems know-how enables the Schaeffler publicly listed stock corporation incorporated under German Group to offer comprehensive solutions that are tailored to law with its registered office in Herzogenaurach that acts as customer and market requirements. By delivering high- the group’s lead company, the Schaeffler Group includes precision components and systems in engine, transmission, 152 domestic and foreign subsidiaries as at December 31, and chassis applications, as well as rolling and plain bea- 2019. ring solutions for a large number of industrial applications, the Schaeffler Group is shaping “Mobility for tomorrow” to Strategy “Mobility for tomorrow” a significant degree. The company already offers innovative products for hybrid and electric vehicles today. “As a leader in technology, we combine a passion for innovation with the highest standards of quality to shape With its approximately 87,700 employees, the Schaeffler the future of mobility – for a world that will be cleaner, safer, Group is one of the leading global technology companies, and smarter.” This is the vision of the Schaeffler Group. With around 170 locations worldwide, 70 plants in 22 To live up to this claim, Schaeffler adopted its strategy countries, 20 research and development centers, and a “Mobility for tomorrow” in 2016. close sales and service network, the Schaeffler Group ensures proximity to its customers. Based on cross-divisional

Vision Mission “As a leader in technology, we combine a “Guided by the values of a global family passion for innovation with the highest business, we work closely together with our standards of quality to shape the future of customers as true partners to deliver a mobility – for a world that will be cleaner, compelling value proposition through our safer, and smarter.” best-in-class expertise in manufacturing technology and systems know-how. In doing so, we contribute to the success of our customers, the advancement of our employees, and the prosperity of our society.”

7 Company Portrait

Under this strategy, the Schaeffler Group concentrates on 4 focus areas: Eco-friendly drives, urban mobility, interurban mobility, and energy chain. These 4 focus areas are based on four megatrends that will influence the business of the

Eco-friendly drives Urban mobility

Interurban mobility Energy chain

Schaeffler Group in the future: Climate change, urbanization, globalization, and digitalization. On this basis, the Schaeffler Group’s Board of Managing Directors developed 8 strategic pillars in cooperation with the Supervisory Board and senior management worldwide. These pillars define the company’s scope for strategic action for the next few years and form the basis for the continuous further development of the Schaeffler Group. The “Agenda 4 plus One” excellence program ensures that the strategy is executed; it comprises 16 strategic initiatives that have significance

We want to be We are an We are a global We produce the preferred Automotive company with a components technology and Industrial local presence and systems. partner for our supplier. throughout the customers. world.

We view E- We strive for the We want to We live by the Mobility, Industry highest possible be an attractive values of a 4.0 and Digita- quality, efficiency employer. global family lization as key and delivery business. opportunities for performance. the future.

8 Company Portrait

worldwide and have been selected from a variety of initiati- Schaeffler Group’s precision products and systems are key ves. to helping make engines use less fuel and comply with Divisions increasingly strict emission requirements. At the same time, they also extend engine and transmission life and Automotive increase driving comfort and dynamics. Its comprehensive technical expertise for the entire drive train is what sets The Schaeffler Group has divided its business activities into apart Schaeffler Automotive, one of the leading automotive the two divisions Automotive and Industrial. As a partner suppliers worldwide. As future consumption and emissions to the automotive sector, the Schaeffler Group leads the targets can only be fully met by electrifying the drive train, field when it comes to developing and manufacturing the Schaeffler Group offers solutions for the entire range of groundbreaking components and systems for engines, electrification types – from hybrid through to fully electric transmi ssions, and chassis, for both vehicles with drive drive systems. trains based on the internal combustion engine and hybrid and electric vehicles. The Automotive division business is A comprehensive Aftermarket portfolio rounds out the organized into the business divisions (BD) Engine Systems, business of the Automotive division. Transmission Systems, Chassis Systems, and Automotive Aftermarket. The product range covers applications in clutch and release systems, engine and transmission applications, and chassis The Automotive division’s main products include clutch applications. In addition, Schaeffler Automotive Aftermarket systems, transmission components, torsion dampers, valve offers a comprehensive variety of services such as practice- train systems, camshaft phasing units, electric drives, oriented training courses, advice provided by the Schaeffler and bearing solutions in transmissions and chassis. The repair hotline or the group’s online garage portal, as well as

Efficient Future Mobility concept vehicles show technological solutions for regional requirements. The Efficient Future Mobility China concept vehicle is shown here.

9 Company Portrait

The bearings and related products manufactured by the Industrial division are used, for example, in wind turbines. the development of specialized tools.

Industrial as mechatronic systems with datagenerating sensors.

The Industrial division is primarily managed based on With its rolling bearing, linear technology, and direct drive regions due to its wide customer and business structure. On solutions, the Schaeffler Group offers comprehensive this basis, the Europe, Americas, Greater China, and Asia/ technological and application engineering expertise for Pacific regions operate as profit centers responsible for the complete systems from one source that are precisely Industrial business in their respective markets. Within the matched to one another. The focus is increasingly on smart regions, the Industrial business is grouped into eight products and on connecting components. One example sectors: (1) wind, (2) raw materials, (3) aerospace, (4) rail, is the “Machine Tool 4.0”, whose sensor-equipped com (5) offroad, (6) two wheelers, (7) power transmission, and ponents measure and report vibrations, forces and tempera- (8) industrial automation. Sales to distributors (Industrial tures at all relevant bearing positions. Distribution) round out the Industrial division’s regional business. The majority of rolling bearings is supplied by the “Bearing & Components Technologies” (BCT) unit as an internal The Industrial division’s product spectrum includes rolling supplier. The bearings and related products are used in and plain bearings, linear technology, maintenance pro- applications in drive technology, production machinery, and ducts, monitoring systems, and direct drive technology. wind turbines, as well as in heavy industries. In the aero- The Industrial division offers a broad portfolio of bearing space sector, the Schaeffler Group is a leading manufacturer solutions, ranging from high-speed and high-precision bea- of high-precision bearings for jet and helicopter engines as rings with small diameters to large-size bearings over three well as for space travel applications. meters in diameter. Components are increasingly being integrated in system solutions, some of which are designed

10 Company Portrait

Customer – Plants and F&E centers worldwide

Russia Canada Uljanowsk Stratford (2)

USA

Cheraw (2) Danbury Fort Mill (2) Joplin Spartanburg Troy Wooster India

Brazil Hosur Pune Sorocaba (2) Vadodara Mexiko Savli Puebla South Africa Irapuato Port Elizabeth

1 Regions Europe America China Asia/Pazific F&E-centers 12 5 1 2 Plants 16 14 8 5 Automotive 33 10 6 4 Industrial 13 4 2 1

1 The regions represent the regional structure of Schaeffler Group Number of plants in brackets * 2 Plants Automotive, 1 Plant Industrial

11 Company Portrait

South Korea 1 In Europe Uljanowsk Ansan Changwon Germany United Kingdom Jeonju Bühl Llanelli Eltmann Plymouth Erlangen Sheffield Gunzenhausen Italy Hamm/Sieg Momo Herzogenaurach Hirschaid Portugal Höchstadt (2) Caldas da Rainha Japan Homburg (3)* Ingolstadt Spain Yokohama Elgoibar Kaltennordheim Lahr Hungary China Luckenwalde Debrecen Morbach Anting Szombathely Nuermberg Nanjing Schweinfurt (2) Romania Suzhou Steinhagen Braşov Taicang (4) Hosur Suhl Yinchuan (2) Slovakia Pune Unna Kysucké Vadodara Wuppertal Nové Mesto Savli Austria Skalica Berndorf-St. Veit Czech Republic Lanškroun Vietnam France Calais Svitavy Biên Hòa City Chevilly Haguenau (2) Thailand

Chonburi

12 Global Environmental Protection

Environmental Protection Worldwide

Manufacturing location at Schaeffler Bühl

At all manufacturing locations Numerous awards

Since the mid-1990s, Schaeffler has been developing an Schaeffler’s commitment here has already garnered special environmental management system of which it has every awards on numerous occasions, including the Bavarian reason to be proud today: Environmental Medal, the “Ökoglobe”, and the Ford Motor Company’s “Recognition of Achievement, Environmental Virtually all of the company’s manufacturing locations are Leadership”, which it has also won three times in a row. certified according to ISO 14001 and the even more strin- Schaeffler won the EMAS Award for Germany and Europe in gent EMAS regulations. New locations generally follow suit 2005 and, in 2015, also received an honorary award during within three years. the European EMAS Awards ceremony.

Leading role in the application of EMAS Sharing experiences

The total number of EMAS-registered manufacturing Schaeffler shares its experience and expertise in this field locations, particularly outside the European Union, means with interested groups in numerous different ways – for that Schaeffler is playing a significant leading role. example, carries out research studies, receives visits from Schaeffler was the first organization to apply EMAS outside universities and expert groups, holds regional meetings with the EU, thus laying the foundation for the registration of EMAS clubs, and takes part in numerous conferences and locations in third countries that subsequently became workshops relating to EMAS and environmental management. possible with EMAS III (also referred to as “EMAS Global”).

13 Global Environmental Protection

Standards on Environmental Protection and Occupational Safety

ISO 14001 OHSAS 18001

ISO 14001 is an international, private standard for environ- OHSAS 18001 is based on a British standard for occupatio- mental management systems. It was published in 1996. nal health and safety management systems. It exists since Similar to the quality standard ISO 9001, also ISO 14001 1999 and has much in common with ISO 14001 or ISO is built on the Plan-Do-Check-Act cycle for the continuous 9001. One main element is the preparation of risk assess- improvement of systems. That cycle was developed by ments. Since 2016 a draft of an ISO 45001 is available, William Deming in the 1930s years. Like all ISO standards that will replace OHSAS 18001 within the next years. the current ISO 14001 chapters follow the so called high level structure. Important contents are amongst others the ISO 45001 preparation of an environmental policy, the assessment of environmental impacts, the definition of responsibilities ISO 45001 is the new worldwide standard for the design of and the preparation of an environmental program, management systems for safety and health at work (OH&S) document control and conducting audits. Many bigger that has been in force since 2018. ISO 45001 describes the companies, especially from the automotive sector, require requirements for SGA management systems and provides in- that their suppliers are certified according to this standard structions for their implementation. It replaces the previous by an accredited certifier. Because of this it is wide spread. OHSAS 18001 and is based on the high-level structure of ISO 9001, ISO 14001 or ISO 50001 in terms of content and EMAS structure.

EMAS stands for environmental management and audit The transition from OHSAS 18001 to the new ISO 45001 is scheme. The basis of the system is a European regulation, subject to a transitional period until 11 March 2021. which was published in 1993. However the participation is voluntary. EMAS requires a system according to ISO 14001 ISO 50001 and additionally compliance with environmental law and the preparation of a comprehensive environmental statement. ISO 50001 is a relatively young standard for energy manage- Both has to be checked and confirmed by a licensed or ment systems. The structure and contents is similar to those accredited environment al verifier. EMAS is the superior and of ISO 9001, ISO 14001 and ISO 45001. Especially because more ambitious of both systems. It is focusing on perfor- of tax incentives the number of ISO 50001 certifications has mance, transparency and credibility and is mainly increased significantly in many countries during the last implemented within the European Union. years.

14 Global Environmental Protection

Schaeffler Environamental, Health and Safety Policy

Environmental protection, occupational health, and occup- Minimum Environmental Impact and ational safety (EHS) are part of our management principles. Environmentally-Friendly Products We help ensure the continuity and success of our company by creating and sustaining a work environment that is safe, Regardless of the activities we are carrying out, we ende- healthy, and conducive to performance and by actively pro- avor to minimize environmental impact by taking suitable tecting the environment. The following principles apply to all measures in advance. We consume raw materials and areas of our company. We are committed to taking responsi- energy sparingly and make every effort to minimize waste, bility for our employees, society, and future generations. waste water, noise, and other emissions. We manufacture environmentally-friendly products taking into account the Efficient Occupational Health and Safety and entire product lifecycle. Environmental Protection Management Responsible Employees We actively use a global occupational health and safety and environmental management system that is undergoing We hold regular information and training sessions to ensure continuous improvement and provide our employees with a that our employees and business partners have the experti- fulfilling and fruitful life until retirement age. We elaborate se and knowledge to carry out their work safely in a health- forward-looking holistic concepts, structures, and proces- promoting manner and with the minimum of environmental ses that we implement in collaboration with our contractual impact in all areas of the company. partners. We carry out regular checks across all areas to determine the extent to which these measures have been Preventive Measures implemented and to monitor the success of our management system. We preserve and promote the physical and psychological health of our employees. We take comprehensive preventive Safe, Employee-Friendly Workplaces measures to protect our employees and prevent damage to the environment. Comprehensive and effective emergency We are convinced that all occupational accidents and illnes- measures are in place at all locations to ensure that our ses can be avoided. Motivated employees and managers employees and visitors are treated properly in the event of help us achieve our goal of a zero-accident workplace. injury. When it comes to protection, our employees and contractors have equal priority. When designing work centers and pro- Open Communication cedures, we take into account the latest trends and developments and place special emphasis on ergonomic design. We conduct an intensive and trusted dialog with interested parties. We provide information about our work Reliable Actions safety and environmental protection measures as well as the impact each of our locations has on the environment. We are committed to observing all legislation and specifications regarding work safety and environmental protection. Chief Executive Officer, Schaeffler AG We act in a responsible manner in accordance with our own Klaus Rosenfeld regulations, which, in many cases, go beyond existing legal requirements. We configure, purchase, operate, and maintain machines and facilities in such a way as to minimize potential hazards, risks, and operational disturbances. Our technology is based on the latest state of the art.

15 Environmental Communication

Environmental Communication

The company’s SCHAEFFLERCONNECT provides comprehen- Regular Internal and External Audits sive information: contact persons, databases, a waste guide and much more. This information is made available to all The level and progress of the company’s environmental employees worldwide. protection are also monitored by regular internal audits at all manufacturing sites as well as external audits by an in- Company newsletters and notices are also used to inform dependent environmental verifier. These audits are planned employees. and coordinated at company headquarters and carried out by the Schaeffler auditor pool. The Schaeffler Group’s inter- Regular Conferences nal environmental auditors participate in multi-day training courses for auditors on a regular basis. Environmental protection conferences held every year allow participants to exchange information and coordinate goals All locations receive an audit report that includes details of and actions. These conferences last several days and are the current status and recommendations for improvement. attended by the environmental protection coordinators from all locations. Due dates and responsibilities are defined for all relevant measures. Since environmental protection conferences were first introduced, cooperation and coordination (e. g. for planning environmentally relevant facilities) between all locations have improved tremendously.

Global Regulations: Plant Standards and Procedures

All actions relevant for the environment, such as the approval of indirect materials or the specification of substances prohibited for use in products and packaging, are regulated globally by special plant standards. In this way, Schaeffler ensures that hazardous materials are used only if there are no other alternatives.

The relevant departments are informed in a timely manner about the use of such materials, and the required action is taken. This means that our customers can be sure that products supplied by Schaeffler contain only approved materials.

Safety rules and regulations also apply to contractors working in Schaeffler plants. A document detailing all safety- related requirements has been prepared for contractors working on the plant premises. Contractors may not enter the premises to perform their work unless they have agreed in writing to comply with these requirements.

16 AWARD

Europäischer EMAS Award 2015

Schaeffler receives an honorary award for environmental protection

In May 2015, Schaeffler received an honorary award from Prior to this, Schaeffler had won the national preliminary the European Commission for its leading role in the applica- selection in the “major companies” category. tion of EMAS during the European EMAS Awards ceremony. Schaeffler had registered its first location in China in ac- The European EMAS Award was first announced in 2005 and cordance with EMAS, and has more manufacturing locations even at the start was presented to Schaeffler at both the on the register than any other company, particular ly outside national and European level. of the EU. EMAS, which stands for European Eco-Management and The award was presented by Kestutis Sadauskas, director Audit Scheme, is a management system designed to help of the European Commission’s Green Economy section, organizations improve their environmental performance and during the ceremony in Barcelona, and received on behalf of communicate their results. EMAS is chiefly characterized by Schaeffler. its performance, credibility, and transparency, and is consi- dered to be the premier environmental management system.

17 Environmentally Friendly Products

Environmentally Friendly Products

Environmental pollution and the depletion of resources Comprehensive Data Management can largely be attributed to the increased consumption of products. We must change our way of thinking and insist on The company’s own environmental data coordinator handles environmentally friendly products that use fewer resources inputs and outputs of material and energy flows for all and minimize the strain on the environment. Our “Integra- processes and products at the respective plant. Material ted Product Policy (IPP)” addresses this idea and aims to flow analyses help further integrate environmental manage- promote environmentally friendly products. ment into the company’s corporate units, such as Logistics, Manufacturing and Financial Controlling. Existing processes Schaeffler – Always One Step Ahead and technologies are questioned thoroughly, and additional opportunities for improving processes are recognized and This isn’t a new idea for Schaeffler; we have embraced this put into practice. idea for many years. We accepted the challenge to design environmentally friendly products a long time ago. What is Information Networks new is the methods and tools used to achieve this goal. How can we utilize previously untapped potential to improve the Environmental impacts occur even when resources are ecobalance of a product over its entire lifecycle? extracted. To make products even more environmentally friendly, Schaeffler stays in close contact with its suppliers New Inroads and customers. A shared network is used to record and analyze environmental information along the entire product One way to make environmentally friendly products is to chain. The insights gained allow new solutions to be increase the efficiency of the material and energy used, thus recognized for environmentally friendly products and reducing environmental impacts. We continuously evaluate sustainable development. and design all material and energy flows, from the time they enter the company to the time they leave as products or Recycling residual materials. We try to ensure that manufactured components are recycled at the end of a vehicle’s service life. This is why LuK and INA are founding members of the Partslife recycling system.

18 Location

Introducing the Location in 2019

Counting on 3,022 employees (December 2019), Schaeffler Schaeffler is present in Brazil since 1958, at the time when Brazil has its headquarters in the State of São Paulo – one Rolamentos Schaeffler do Brazil, unit INA, started its ope- of the largest development centers in the Southern Hemis- rations. In 1958, FAG do Brasil was founded and in 1975, phere. The company encompasses three strong brands LuK do Brazil. In 2003, Schaeffler started the integration – INA, LuK and FAG – and centralizes its operations in one of the INA, LuK and FAG units. Today, the operations of the sole plant in Sorocaba, on an area of 782.437 m², 96 km three brands are centralized in the Sorocaba plant, in the away from the state’s capital São Paulo. The city of Sorocaba neighborhood Éden – former rural vicinity but nowadays an has more than 600,000 inhabitants and is one of the most industrial zone. Schaeffler’s plant in Brazil features 168.088 developed cities in the state. m² of constructed area and a forest reserve (Cerrado Biome) of 139.247,67 m².

19 Location

Production Competence Centers

In Brazil, Schaeffler operates in three segments: Automotive Schaeffler Brasil is the worldwide leading manufacturer of (car manufacturers), Automotive Aftermarket (replacement bearings and clutches within the group, and exports most of market) and Industrial (service to several industrial seg- its production to other Company units, mainly to Europe, but ments). also to USA, South America, Asia and Africa.

Counting on one of the most advanced Brazilian industrial Schaeffler Brasil is also the world center for helical spring parks in this segment, the company develops and manufac- manufacturing and one of the most important competence tures products for the automotive sector, such as engine, centers for clutches and drive systems. clutch and drive systems, pumps, wheels, chassis and bearings; industrial components for the agriculture, railway, Moreover, Schaeffler Brasil headquarters one of the Advan- mining, pulp & paper, oil, sugar & ethanol segments, and ced Development Technology Centers of Schaeffler’s Indus- for the motorcycle market. trial business unit, which promotes studies and researches for the development of products and technologies that do The company’s technological capacity enabled the inclusion not, yet, integrate the company’s portfolio. of new concepts and developments for a large variety of products and projects. With a corporate culture focused on creativity, Schaeffler counts on 30 research and development centers spread Offices in South America around the world and holds 20,000 patents worldwide.

Besides the plant in Brazil, Schaeffler operates in other EHS Organization South American countries. Offices located in Buenos Aires, (Argentina), Bogotá (Colombia), Santiago (Chile) and Lima The EHS organization at Schaeffler Brazil is represented in (Peru) grant structure and proximity to the growing South the chart below: American markets.

Head of EHS South America

Environment Safety Engineer Health Team Engineer

Doctor Environmental Safety Technician Safety Technician Trainee Nursing Nurse Technician Safety Technician Safety Technician EHS Apprentice

Safety Technician Safety Technician

20 Changes in location

Changes at the Location

In 2019, the following organizational changes occurred:

The HR Manager is acting in the EHS department in addition current activities in HR department. a new Energy Coordinator.

New production machines and Improvements:

New Production Machines Location Hm2nc ir lapping machine - project i-015926-01 / 02 UP-32 rectifying cells Hm2nc ir lapping machine - project i-015926-03 / 04 UP-32 rectifying cells Hiq vario 480 ultrasonic welding machine CMC master cylinders Duramax lte coordinate measuring machine QA - planning - MU Ta Up-12 needle feeder UP-12 assembly Equipto. For monitoring of assembly processes Cell mount / MA Laser engraving machine lm3 mp 86624130 LBE-SB special overhead machines Measuring recoil machine 100% brand sccam General assembly Electric tug brand movexx model t1000 Press Shop Electric tug brand movexx model t1000 Press Shop Aseh # 1 of stand-alone cnc spring winder Up-15 assembly aseh Aseh # 2 of stand-alone cnc spring winder Up-15 assembly aseh Tug nr.168 brand Toyota model 2tg20 Expedition Vci tank for phosphate - project i-004255-01 Phosphate Line Modular datacenter for equips. Computer Sorocaba production building Expansion of se-10 and new energy substation Sorocaba production building Luk nitrogen tank Nitrogen gas system maintenance INA nitrogen tank Nitrogen gas system maintenance INA nitrogen tank Nitrogen gas system maintenance O2 tank Nitrogen gas system maintenance

21 Changes in location

Dislocation of machines, facilities, products, etc.

Uninstalled Machines Destination Azerf model 79-1a universal milling machine Scrap Microcentric grinding 1 Scrap Eccentric press raster mod hr-30sl 30 tons Scrap Schutte multifunction lathe sd50-004 Scrap Rectifying novamatic 2gp 10/90 f Sale Flat grinding Scrap Prototype assembly press Scrap Rectifying novamatic 4gr 20/130 f cnc sl 1129989 Scrap Hm ai 2438 lapping machine Scrap Rectifies microcentric 2 Scrap Rectifies irr 2s-105 - 2271 Scrap Ksbi grinding machine 7784 Scrap Rectifies arr 01-g - 2412 Sale Conjugated tape unwinder and straightener Scrap Lsa press Sale Horizontal lathe 12615 Scrap Mechanical lathe sanches blanes tm280 Sale IA900 Furnance Scrap

Main Changes in EnEHS (Energy, Environment, Health and Safety) Management:

3 machines were improved according to the Program to Prevent Risk. 12 workstations were adequate by the Road Map. 3 workstations were adequate by the ergonomic project. 100% of wastes send to a sustainable destination. 262,200 liters of mineral oil recovered and used in production. 61,261 cubic meters of industrial effluent treated at the Schaeffler Water and Effluent Station. 3,456 liters of vegetable oil donated to IESA. 88,638 cigarette butts, collected in 4 collectors installed in the exits of the company, sent for recycling. 9,820 hours of EnEHS training.

22 Legal Requirements

Legal Requirements

Legal requirements are checked and reviewed twice a year. The responsible authorities receive regularly the following Any violations found are corrected immediately. During the reports and information: reporting period all relevant limits were met. a. Sanitary Authority (SIVISA): monthly report about quality To accomplish this, the Environmental Department uses the of drinking water and every six months report about the assistance software Amblegis for controlling the legal requi- wells. rements. This software enables us to map the municipal, b. State water department: weekly report with wells state and federal legislation and to assess the applicability consumption. of such legislation to Schaeffler as well as to schedule the c. Environmental Agency at São Paulo State (CETESB): corresponding action plans to be accomplished. Monthly annual report about the waste management (amount of the system sends news and updated applicable legislation waste and companies responsible for transportation and for the EnEHS evaluation, the responsible needs to access treatment of these waste) the low and fill in how we meet or not the requirements of d. Environmental Agency of Brazil (IBAMA): annual report of each one, after that the supplier will evaluate the answers environmental aspects as waste generation, companies and classify if we comply with the legislation. responsible for waste treatment, waste water management, emission, etc. Additionally, the software enables the control of relevant e. Army, Civil Police and Federal Police: Monthly chemicals environmental documents and permits from the site, consumption, purchase and stoke report. facilities at the site that requires a permit: The compliance with waste water is checked every three a. All the site – Operation License from CETESB and another months for an external laboratory and daily by the internal one from the City Hall laboratory, during the reporting period no limit has been b. All the site – Firefighting authorization (AVCB) exceeded, if a limit is exceeded, corrective actions are c. Restaurant – Operating license from the Sanitary Agency initiated and implemented immediately. (SIVISA) d. Medical clinic – Operating license from the Sanitary The State of São Paulo doesn´t have a legislation to control Agency (SIVISA) atmosphere emission, in order to have a control and mo- e. Wells – Bestowal from the state water department (DAEE) nitor the emissions, Schaeffler compare the results to the and an Operating license from the Sanitary Agency State of Paraná Law (state next to São Paulo where these (SIVISA) limits were defined by a local regulation). f. Wastes – Certificates for Disposal of Environmental Relevant Waste (CADRI) Therefore, every 3 years emission limits are checked for an g. Chemicals – Registration certificates for chemical external company, during the reporting period no limit has products controlled by the Army, Civil Police and been exceeded, if a limit is exceeded, corrective actions are Federal Police initiated and implemented immediately. h. Operation – Regularity certificates from IBAMA

Respective, valid permits have been issued. The facilities are subject to regular internal and external inspections. Any observations are corrected immediately.

23 Legal Requirements

Limits for emission sources:

References Parameter Maximum Value Allowed Maximum Value Allowed (Law SEMA 54 - State of Paraná) (European Reference) Particulate matter (mg / Nm³) 150 20 Volatile Organic Compound (mg/ Nm³) 150 75 Semi-Volatile Organic Compound (mg/ Nm³) 20 Not Applicable

SOX (mg / Nm³) 500 350

NOX (mg / Nm³) 500 500

Limits for waste water discharge:

Maximum Value Parameter Allowed (mg / L) pH at 25ºC between 6,0 and 10,00 Temperature 40 Cº Settable solids 20 Hexane-soluble substances 150 Arsenic* 1,5 Cadmium* 1,5 Lead* 1,5 Cyanide 0,2 Copper* 1,5 Chromium VI 1,5 Total Chromium* 5 Tin* 4 Phenol 5 Soluble iron 15 Fluorides 10 Mercury* 1,5 Nickel* 2 Silver* 1,5 Selenium* 1,5 Sulfate 1000 Sulfide 1 Zinc* 5

24 Direct Environmental Impacts

Direct Environmental Impacts

Evaluation of environmental impacts / aspects at the site Emissions

At Schaeffler Brazil environmental aspects and impacts Several measures developed by Schaeffler focus the re- are identified, evaluated and controlled per building. This duction and control of atmospheric emissions to assure a control is done through the procedure PO.USG 037. For each healthy environment for the employees and avoid environ environmental aspect there is a respective environmental mental damage. The State of São Paulo doesn´t have a impact which is evaluated considering the characteristics legislation to control emissions with the characteristic of (situation, temporality, influence and classification) and Schaeffler’s emission. However, every 3 years the Schaeffler criteria (scale, severity and probability) through the items Environmental Department carries out atmospheric analysis defined in the criteria evaluation. A formula that defines on the atmospheric emission control equipment by a specia- if the impact is significant or not significant, if the impact lized external laboratory. Results of atmospheric emissions is significant, programs and targets are defined in order to are compared to the law of the State of Paraná (state next reduce the impacts of Schaeffler activities. to São Paulo where these limits were defined by a local regulation). The last sample was analyzed in June/2017. All requirements defined by the law in the state of Paraná were fulfilled, as shown in the following table.

References Main Emission Sources Maximum Grit Jet Value Sleeve Grit Jet Sleeve Allowed Filter 4 Bio- Sleeve Chimney Chimney B Chimney C Parameter RTO Filter (Law SEMA Wing waescher Filter 4 Phosphating Phosphating Phosphating Coating 54 - State of (European Wing Paraná) Reference)

Particulate matter 150 20 N/A N/A 28,18 5,77 N/A N/A N/A (mg / Nm³) Volatile Organic Compound 150 75 6,42 3,46 N/A N/A 1,51 1,39 1,24 (mg/ Nm³) Semi-Volatile Not Organic Compound 20 Applicable 0,01 0,0097 N/A N/A 0,0102 0,0095 0,01 (mg/Nm³)

SOX (mg / Nm³) 500 350 N/A N/A N/A N/A N/A N/A N/A

NOX (mg / Nm³) 500 500 N/A N/A N/A N/A N/A N/A N/A

Obs. Due to pandemic in 2020, the analyses were postponed to 2021.

25 Direct Environmental Impacts

Water protection

Schaeffler Brazil generates two kind of waste water: In 2019, the WWTP treated an average of 40,943 m³ of clarification effluents and 20,318 m³ of greasy and oily effluents. Sanitary waste water: this waste water is pumped directly to the SAAE, a waste water treatment plant under res- In 2018 the LuK plant WWTP was deactivate and all effluent ponsibility of Sorocaba City. The legal requirements for were redirected to INA plant WWTP. this waste water is defined in the article 19 A of Decree 8,468/76 and was met during 2019; The quality control of the treated industrial wastewater is Industrial waste water: Schaeffler Brazil has a waste water also carried out daily by the internal Chemical Laboratory in treatment plant responsible to treat all industrial waste compliance with Article 19A of the State Decree 8,468/76. water generated in the plant. The WWTP is composed of Furthermore, Schaeffler Brazil sends samples to be analyzed two effluent treatment systems, the clarification effluent in an external laboratory on a regular basis (at least, every system and the other system is the treatment of greasy three months). In 2019, all the parameters limits were met, and oily effluents. The legal requirements for this waste and we had fulfilled the legal requirement throughout the water are defined in the article 19 A of Decree 8,468/76 year as the following table: and was met during 2019.

1 - Effluent Treatment Station 2 - Company effluent outbox Maximum Value Last Analyze Maximum Value Last Analyze Parameter Parameter Allowed (mg / L) Result Allowed (mg / L) Result between 6,0 and between 6,0 and pH at 25ºC 9,2 pH at 25ºC 7,4 10,00 10,00 Temperature 40 Cº 19,4 Temperature 40 Cº 24,1 Settable solids 20

*QL – Quantification limit

26 Direct Environmental Impacts

Water management Waste management

Regarding water management, Schaeffler Brasil has three Dispose wastes in landfill brings impacts to the physical, different sources of water: biotic and socioeconomic environment, the waste does not comply with any of the 5 R‘s (Reduce, Reuse, Recycle, External supplier (trucks); Rethink, Recover), in order to eliminate environmental 6 Artesian wells; and, impacts, in 2018 Schaeffler Brazil started a waste project 1 Natural spring. and in 2019 achieved the goal to be a zero waste to landfill plant, now all wastes go to a sustainable disposal. Water that comes from external supplier (trucks) and artesian wells follow directly to the water tank in 0701 and 0702 All non-recyclable wastes are sent to coprocessing (burning plant, where quality tests are made monthly, including more in cement ovens), a method used for contaminated five potability analyses realized in consumption points in waste, but due to the environmental concern, it was recently 0701 plant and three potability analyses in 0702 plant. accepted for organic and non-recyclable waste, transforming waste in sustainable energy generation. Theses analyses are performed by an external laboratory, all of them in compliance with the Portaria 2.914 from Health This project brought many benefits to Schaeffler and to the Ministry and SS 65. environment:

Additionally, the Maintenance department cleans all water tanks twice a year. They are emptied and cleaned by a specialist external supplier.

A system to pump chlorine to water consumed by employees is also kept by central laboratory in order to met the concen- tration defined by law.

Schaeffler accomplishes regular tests to verify Legionella and Pseudomonas aeruginosa presence in cooling towers, Presently, the employees carry out the selective collection restaurant and locker room boiler in building 2, a shower using several collection devices spread across the site. sample point, Luk‘s drinking water and INA‘s drinking and These containers meet the color pattern stipulated by Reso- industrial water. lution CONAMA Nº 275/2001.

If any point is tested as positive, we increase the dosage of Hazardous wastes are kept in Waste Centrals. Such centrals the biocide and perform a new confirmatory analysis. are located in controlled areas and feature a waterproof This analyzes are performed 4 times a year according to floor, covering and containment trays as specified in the internal standard S 132813. group’s Energy, Environment Protection and Safety Manual. The Environment Department controls the waste generation on a monthly basis.

A suitable waste management also requires the control of the CADRI licenses – Certificate for Disposal of Relevant Waste. This document tracks and approves the removal of hazardous waste to reprocessing, storing, treatment and final disposal sites.

27 Direct Environmental Impacts

The management of environmental suppliers is also monito- In 2019, 262,200 liters of oils were recovered by the red by environmental audits accomplished every 3 years in briquetter machine granting the following benefits: the supplier site. Reduction of the grinding sludge sent to its final desti- As good practice, regarding waste management we have nation and therefore reducing the waste transportation several programs highlighted below. expenses (reduction of CO2 emissions); Change of the grinding sludge hazard class: formerly cha- Vegetal oil donation racterized as hazardous waste – Class I, after the project implementation, it shifted to Class II-A (non-hazardous); Since 2008, Schaeffler supports and contributes to environ- Reduction of grinding sludge disposal costs and savings mental actions, helping hundreds of children at social risk. due to less demand of new mineral oil; Such contribution is accomplished through a partnership Reduction of the need of mineral oil purchase for refue- with the Institute of Environment and Social Education ling the oil centrals and, consequently, reduction of CO2 (IESA) by means of donating vegetable oil for the production emissions, due to less oil and waste transportation. of ecological soap. Cigarette Butts Recycle The oil donated by Schaeffler to IESA comes from the restau- rants and from employees, who count on collection points In 2017, were installed 4 cigarette butt collectors in a part- located at the plant entrances. nership with a supplier who recycles the material. Besides being the most common trash in the world, cigarette butts With the vegetable oil, IESA transforms the material in soap can cause serious impacts on the environment. powder and soap bars commercialized within the community. The money raised with the sale of soaps is reverted to With the material recycling, it is possible to minimize the the nurseries “Semeadores do Amanhã” and “Lar Larissa impacts, taking account that every 2 cigarette butts discar- de Freitas”, both institutions care for children at social risk ded in our waters, generates the corresponding to pollution (over 200 children). In 2019, 3,456 liters of oil were donated caused by 1 liter of sewage. by Schaeffler to IESA. The material is transformed into a cellulosic mass that is an Recycling waste generated in employee’s homes ingredient of the paper, with 25 cigarette butts, it is possible to make a sheet of paper, used in artistic activities. In addi- In addition to vegetable oil donation program, Schaeffler tion, the material does not go to the landfill. Brazil also has a program to encourage employees to donate waste of medicines and batteries that are generated in their homes. With this program, the company seeks to reduce the environmental impact of hazardous waste generated in the houses of society and which are not properly managed by the public authorities.

Briquetter – program to recycle mineral oil

The briquetter unit is a press system for recovering grinding sludge coming from the oil central systems. This equipment recovers a significant volume of mineral oil, therefore sub- stantially reducing the volume of disposed grinding sludge and scaling down the demand of oil to be replaced in the central oil system.

28 Direct Environmental Impacts

Polluted area cleanup operations In the same year, Schaeffler opened competition in the mar- Schaeffler Brazil has been working on the environmental ket to evaluate new and effective remediation technologies remediation process on the FAG old site in SP since 2007, in for the site and after many studies we hired the company order to meet the requirements of the CETESB - Environmen- EBP (formerly Geoklock) to assume the technical responsibi- tal Agency of the State of São Paulo. The process started in lity for the remediation process. 2009 with the supplier Arcadis, which through some technologies reduced the levels of Free Phase and organochlo- Below it is possible to check the status of the contamination rines migrated from the neighboring company Sandvik, the plumes and the technologies that will be used during envi- remediation schedule came to end in 2018 without success ronmental remediation. in finalizing the remediation.

29 Direct Environmental Impacts

Usage of natural resources and raw materials An energy coordinator has been named at Schaeffler Brasil to take care about this issue and address to top level ma- Schaeffler Brasil maintains an Energy Efficiency Program nagement, situations which resources are needed to reach (EnEffpro), whose objective is to identify ways and me- the following energy objectives. chanisms in order to assure a more efficient use of the resources and to reduce the waste of energy. This program is followed by the EnEHS team, industrial engineering, maintenance (electrical and mechanic), purchasing, technology, Optimization etc. Once a week, the team meets to monitor and discuss of energy costs actions and projects. Increased energy Several ways to avoid the waste of electrical energy are pre- efficiency Objectives sented on occasion of new employees’ induction training, for instance: lights on when it is not necessary, machines connected without producing, air conditioning and compu- ters running with no need, correct use of compressed air Ensuring and water. security of supply According to Technology and Science Ministry of Brazil, a reduction of 1 MWh of electricity allow a reduction of

0.1244 ton of CO2. Compressed air Schaeffler developed several actions in order to reduce the natural resources consumption, as described below. As strategy of the Energy Team, a group of mechanics of maintenance has been formed in order to identify and EnEffpro eliminate air leakages.

At Schaeffler, the program EnEffpro (abbreviation of the Ger- As a result, the gross consumption of compressed air man words: Energie Effizienz Programm) focuses the energy reduced by 4% in 2019 compared to 2018. efficiency. The goal is to optimize the energy consumption, in other words, to improve the rational use of energy. The To increase employee awareness, several trainings about implementation of measures and strategies aims to avoid how communicate air leaks were held with job floor the waste of energy during production, distribution and employees. usage, one of the principles of the MOVE philosophy. The actions and projects focused on energy efficiency, Energy Efficiency Projects environmental and safety protection are discussed by the Energy Team. Several projects aimed to save energy and get our process more efficient have been implemented at Schaeffler Brazil. As a result, there was a reduction by 3% of energy consumption in 2019 compared to 2018. An ongoing project is the installation of LED in some productive areas and offices. These lamps are more efficient and has a longer life reducing energy consumption and costs.

30 Direct Environmental Impacts

Machine shutdown / turn off plaques Prohibited substances in concentrations higher than specified limits shall not be contained in materials supplied Several machines that can be turned off during prolonged to the company in terms of this standard. breaks (longer than 30 minutes) are identified with a label and the employees are instructed to shut down such equip- The chemical storage area is designed to reduce the risk of ment. leakages. The floor where chemicals are stored is completely waterproofed and the surrounding of storage area has a containment in order to avoid soil and water contamination in case of accidents.

Furthermore, for all products in the site, have an emergency form with the risks and safety informations, this form must be stored next to the product, and all different packaging must contain the GHS identification.

Campaign “Watch out, turn off!”

Light switches are identified with an adhesive label reminding employees to turn off the lightning devices when are not in use.

Maintenance

Schaeffler‘s maintenance department is responsible for Usage of chemicals and substances as well as semi- scheduling preventive and predictive maintenance on finished products and purchased parts machines and equipment, in order to eliminate chemicals and compressed air leaks and control the electricity con- Schaeffler follows a corporate procedure that regulates the sumption. release of chemical products. Chemical products in use or new products are verified as to their worldwide availability, Preventive maintenance also extends to air conditioning suitability of use, cost x benefit, legal requirements, potenti- equipment, with the replacement by environmentally al risks for health and environment. friendly gases and the cleaning of the ducts is carried out in order to maintain adequate the air quality in closed and At Schaeffler, new products can only be purchased and used air-conditioned environments. after inspection and release by the involved technical departments, and available in the system (Stoffinformation). The tightness test is also carried out in pressure vessel, with Schaeffler also follows an internal standard that establishes the objective of detecting gas and compressed air pipes requirements to prohibited substances in the entire supply conditions, according to the legislation. chain, applicable to any material supplied to the company.

31 Direct Environmental Impacts

A workshop is held annually in order to improve the energy Transportation and logistics efficiency of the equipment, a specialist team is responsible to check and define actions for improving and reducing In Brazil, most parts of transportation operations are done consumption. by road transport through trucks. This mode of transport corresponds to a great amount of emissions of greenhouse Replacement of mercury vapor lamps by LED, which has the gases. advantage of sustainability, as they do not have metallic filaments, mercury or toxic substances in their composition, This environmental impact has been reduced significantly the LED lamp does not emit pollutants to the environment in Brazil over the past few years, with the implementation of and can still be recycled. a new law (Proconve 7 equivalent to Euro 5) in 2012. With this standard, trucks and buses must use a diesel with less Another fact is that by not wasting heat, it helps in reducing sulfur particles (S50) significantly reducing the emission the consumption of electricity, thereby reducing the environ- of greenhouse gases such as nitrogen oxides and sulfur mental impacts that are caused and this fact also helps in oxides. air conditioning function. By 2016, a large part of trucks that transport Schaeffler parts Risk of potential environmental accidents and impacts out (which belongs to outsourcing companies) met the new of incidents, accidents and potential emergency situations standard with Euro 5 vehicles that has low emission. There- fore, Schaeffler Brazil can reduce it emission of greenhouse Schaeffler develop the Emergency Care Plan, a procedure gases of scope 3. defining actions to be taken in case of an emergency (accident, fire, chemicals leak and explosion). Schaeffler carried out every month a sample analysis of black smoke in trucks that access the company, carriers To act in those cases the company count with the briga- working on behalf of Schaeffler and vehicles from customers de team, volunteer employees in all departments that and suppliers who access the company, according ABNT participate in monthly theoretical and practical trainings NBR-6016 and CETESB L9.061. about how to act in potential situations that can causes an environmental accident, the participates can be recognized The observer should ask the driver of the vehicle to acce- though a red t-shirt and all employees are trained to call for lerate the truck to demand more severe engine conditions, an area brigade in case of emergency. and through a scale observe the smoke color, in case the observer verifies the emission above 40%, a Black Smoke Schaeffler has an emergency vehicle equipped with fire Emission Letter it is prepared to Purchases, who must notify extinguishers, specific materials for chemical emergencies the person responsible for the vehicle. and necessary PPEs. It is possible to find emergency kits strategically placed all over the site, equipped with saw- Internal handling is dust, lime, flameproof shovel and garbage bags for correct carried out by towing disposal of the waste generated during the environmental carts, pallet trucks and emergency. gas and electric forklifts, in order to reduce When an accident happens, the occurrence is recorded in an atmospheric emissions, environmental accident control to define the action plan. a project is underway to replace the use of gas forklifts for more towing carts. In the last years diesel forklifts already were eliminated.

32 Direct Environmental Impacts

Impacts on biodiversity

The environment management at Schaeffler Brazil is aimed on prevent the risk of environmental impacts on biodiversity. The site is located in area of 782.437 m² which only 168.088 m² of built area and a huge area of preservation of Cerrado Biome where there is no construction or inter- vention of Schaeffler Brazil. This natural area maintained by Schaeffler has 139.247,67m² and is one of the most preser- ved biome areas of the city.

Furthermore, in the internal areas and at Schaeffler Club, several trees and green area are kept by Schaeffler and is a great area for employees to relax during free times.

In 2019, Schaeffler Brazil donated 300 seedlings for employees, to celebrate the Tree Day in September.

33 Indirect Environmental Impacts

Indirect Environmental Impacts

Products and packaging In 2018, Schaeffler shared bike points were inaugurated, with 10 parking spots and 27 bikes available for moving by The products of the Schaeffler Group directly contribute to the company. achieving the Sustainable Development Goals. For example, technical developments for electrically powered cars, Mobility, integration, movement, transportation and health scooters, e-boards, and e-bikes encourage the development are some of the benefits that Bike Schaeffler brings to of “Sustainable cities and communities” (SDG 11). Products everyone. in the energy chain also contribute to this development goal and additionally help to realize “Sustainable and modern The project aims to facilitate the locomotion of people by energy for all” (SDG 7). the company, and everyone can use day by day, following the established instructions. At Schaeffler Brazil, returnable packaging is used for the transportation of final products, reducing the use of raw materials and natural resources.

Components and finished products coming from production as scrap are managed according to a world-wide procedure on handling of non-usable parts and products – Scrapping. These materials are carried by escorted transportation to foundry facilities. In this way, safety is guaranteed from generation to final destination.

Schaeffler started a project in 2019 to reduce the purchase and disposal of pallets, by creating disposal points for good and bad pallets in all buildings, it is now possible to store good pallets in stock, together with new ones. Awareness about the importance of reusing pallets was carried out at production meetings and in the media, the goal is to reduce 65% in the purchase of pallets and consequently this amount will not become a waste.

In 2019 the project reduced 41% in the purchase of pallets and 25% in wood waste generation.

Employee transportation

Schaeffler encourages the use of collective transport, through buses lines available to employees of all shifts, passing in several regions of Sorocaba and neighbor cities. By this means, employees benefit from quality of life, comfort and safety. By reducing the number of cars on the road, the company strengthens its commitment to the environment, reduces city traffic and 2CO emissions.

34 Indirect Environmental Impacts

Environmental performance of contractors, with the MSDS (Chemical Safety Information Sheet) and the sub-contractors and suppliers Technical Bulletin of the product, both in English.

Since 2009, 100% of the environmental service providers The responsible technical department will evaluate environ- (mainly companies which treat, recycle or transport wastes) mental, health and safety items during product handling have been audited by the Environment Department. During and classify it according to specifications: this period 100% are licensed in compliance with the Bra- zilian legislation. These audits are performed every 2 years FM1 released to Schaeffler worldwide (standard products) and an internal control monitors monthly the licenses and FM2 released only for specific plants (no standard products, certificates of the contractors, sub-contractors and sup- application restricted locally). pliers. FM3 released for testing purposes only (fixed term release, only for specific plants) Service providers, who works at Schaeffler Brazil site, FM4 released for laboratory personnel only must participate in induction training. The training takes 3 (for laboratory use only) hours and provide for contractor all rules and procedures FM5 released for laboratory personnel and only for qualified regarding Energy, Environment, Health, Fire Prevention, persons (production use) Security and Safety. Additionally, to be able to participate of FM6 blocked (stocks to be used) induction training, the contractor must provide in advance FM7 blocked (prohibited for use, actions to be eliminated) to Schaeffler Brazil documents proving that the employee FM8 must not be used for new projects / new applications belongs to contractor, medical exams to show that the FM9 blocked (exception: released for specific plants only employees are able to perform the services, documentati- until the end of the fixed-term release) on and certificates for special works as jobs into confined spaces, at heights, forklift driver, etc. The classification and information of the products are available on the “Stoffinformation” system and can be When the contractor is going to start a special work, they verified by all employees. Schaeffler‘s purchasing team is must ask for authorization, a safety technician goes until aligned with the procedure and only purchases chemicals the place and check the PPE’s, the equipments, the body after checking the classification on the system. pressure of the employees, etc. If everything it’s ok the work can start, if it’s not, the work is not allowed to start. The purchasing team at Schaeffler works together with the EnEHS team in the search for environmentally friendly sup- Schaeffler follows a corporate procedure that regulates pliers and socio-environmental products. monthly contractor audits. If any deviations are found, the supervisor/ group leader responsible for hiring the company The purchase team also work together on pallets project, is immediately contacted and if necessary, depending on with the target to monitor the pallets purchase necessity, the risk the work is stopped. once the rest of the team work in ways to separate pallets in good condition, which could be reused internally, with the Environmental impacts out of purchasing processes purpose of reducing the volume of discarded wood. Today, after the implementation of the program, there was a signifi- Schaeffler Brasil follows the internal procedure for cant reduction in the volume of wood discards, reduction in purchasing chemicals P170070, where chemicals can only CO2 emissions and the purchase of new pallets. be purchased after inspection and release by the technical department responsible in Germany. At Schaeffler Brazil, when a new machine arrives on site, there is an internal procedure that must be followed. The The inspection and release request must be made through EHS department evaluate safety and environmental issues the chemical release form (BAFF), which must be completely and only after the release of the responsible, the machine filled out and forwarded to the responsible buyer together can operate.

Key indicators

Key Indicators according EMAS III

Sorocaba

Absolute Relative* Base year 2017 2018 2019 2017 2018 2019 Database Added Value [Mio €] 103 103 78 General Data Total Headcount [EMP] 3.407 3.401 3.022 Size of property [m2] 782.437 782.437 782.437 Total Sealed Surface [m2] 168.088 168.088 168.088 1.632 1.632 2.155 [m2 / Mio €] Biodiversity [%] 79 79 79 Input Water [m3] 228.006 246.280 238.798 2.214 2.391 3.062 [m3 / Mio €] Electricity from external supply [kWh] 89.200.465 89.708.146 87.269.651 866.024 870.953 1.118.842 [kWh / Mio €] >> Percentage of renewable energies (only from external supply) [%] 43,2 45,3 0 >> Amount of electricity from renewable energies (only external supply) [kWh] 38.534.601 40.637.790 0 374.122 394.542 0 [kWh / Mio €] >> Amount of electricity generated inhouse (conventional) [kWh] 0 0 0 0 0 0 [kWh / Mio €] >> Amount of electricity generated inhouse (renewable energies) [kWh] 0 0 0 0 0 0 [kWh / Mio €] Electricity Σ [kWh] 89.200.465 89.708.146 87.269.651 866.024 870.953 1.118.842 [kWh / Mio €] >> Percentage of renewable enery with regard to overall consumption [%] 43 45 0 Natural gas [kWh] 0 0 0 0 0 0 [kWh / Mio €] >> Amount out of renewable energie [kWh] 0 0 0 0 0 0 [kWh / Mio €] >> Percentage out of renewable energies [%] 0 0 0 Light fuel oil [l] 0 0 0 0 0 0 [l / Mio €] >> Amount out of renewable energie [l] 0 0 0 0 0 0 [l / Mio €] >> Percentage out of renewable energies [%] 0 0 0 Diesel [l] 17.000 18.000 3.000 165 175 38 [l / Mio €] >> Amount out of renewable energie [l] 0 0 0 0 0 0 [l / Mio €] >> Percentage out of renewable energies [%] 0 0 0 Gasoline [l] 0 0 0 0 0 0 [l / Mio €] >> Amount out of renewable energie [l] 0 0 0 0 0 0 [l / Mio €] >> Percentage out of renewable energies [%] 0 0 0 District heating [kWh] 0 0 0 0 0 0 [kWh / Mio €] >> Amount out of renewable energie [kWh] 0 0 0 0 0 0 [kWh / Mio €] >> Percentage out of renewable energies [%] 0 0 0 Propane / LPG [kg] 334.814 123.318 134.492 3.251 1.197 1.724 [kg / Mio €] Methanol [kg] 711.157 746.465 725.545 6.904 7.247 9.302 [kg / Mio €] Energy input Σ [kWh] 97.527.313 95.512.659 92.956.969 946.867 927.307 1.191.756 [kWh / Mio €] >> Amount of renewable energy with regard to total energy input [kWh] 38.534.601 40.637.790 0 374.122 394.542 0 [kWh / Mio €] >> Percentage of renewable energy with regard to total energy input [%] 40 43 0

37 Key indicators

Absolute Relative* Base year 2016 2017 2018 2016 2017 2018 Emulsion concentrates [kg] 57.470 65.210 60.486 558 633 775 [kg / Mio €] Processing oils [kg] 281.945 366.045 237.011 2.737 3.554 3.039 [kg / Mio €] Solvent - VOC [kg] 15.514 14.828 11.668 151 144 150 [kg / Mio €] Solvent - none VOC [kg] 0 0 0 0 0 0 [kg / Mio €] Metal raw materials [t] 38.864 40.513 32.943 377 393 422 [t / Mio €] Metal semi finished products (external supply) [t] 24.302 50.914 50.563 236 494 648 [t / Mio €] Other raw materials [t] 573.390 376.000 93.430 5.567 3.650 1.198 [t / Mio €] Output Waste Σ [t] 20.575 20.671 19.191 200 201 246 [t / Mio €] non hazardous waste Σ [t] 2.188 2.355 2.141 21,24 22,86 27,45 [t / Mio €] hazardous waste Σ [t] 2.741 3.209 3.025 27 31 38,78 [t / Mio €] Scrap (ferrous + non ferrous) Σ [t] 15.646 15.107 14.025 152 147 179,81 [t / Mio €] >> Waste for recycling [t] 4.180 4.789 5.166 41 46 66,23 [t / Mio €] (without scrap) [%] 85 86 100 >> Waste for disposal / removal [t] 748 774 0 7 8 0 [t / Mio €] [%] 15 14 0

CO2-equivalents ∑ [t] 11.525 8.877 8.558 112 86 110 [t / Mio €]

>> CO2-emissions from combustion processes at this site [t] 2.184 1.501 1.471 21 15 19 [t / Mio €]

>> CO2-emissions from electricity obtained from external sources [t] 8.296 6.638 6.545 81 64 84 [t / Mio €]

>> CO2-emission factor per kWh electricity [g / obtained from external sources kWh] 93 74 75

>> CO2-emissions from district heating obtained from external sources [t] 0 0 0 0 0 0 [t / Mio €]

>> CO2-equivalent from the refrigerant agent amounts refilled due to leakages [kg] 1.045.610 738.039 541.412 10.152 7.165 6.941 [kg / Mio €]

SO2 -emissions from combustion processes at the site [kg] 40 42 7 0,4 0,4 0,1 [kg / Mio €]

NOx -emissions from combustion processes at the site [kg] 1.817 1.213 1.203 18 12 15 [kg / Mio €] Particular mater emissons Σ [kg] 6.900 6.898 6.897 66,99 66,97 88,43 [kg / Mio €] >> from combustion processes at the site [kg] 4 2 1 0,03 0,02 0,02 [kg / Mio €] >> from production and other processes [kg] 6.896 6.896 6.896 66,95 66,95 88,41 [kg / Mio €] VOC-emissions [kg] 1.030 1.030 1.030 10,00 10,00 13,21 [kg / Mio €] * In relation to added value Sources for evaluation of emission factors are the ProBas data bank (http://www.probas.umweltbundesamt.de - status: September 22nd, 2011) as well as the GEMIS 4.8 data bank (http://www.oeko.de/service/gemis/).

38 Environmental Indicators

Electricity Water

In 2019 was possible to reduce 3% in energy consumption, In 2019 was possible to reduce 4% in water consumption, but the added value had a decrease by 12%. but the added value had a decrease by 12%.

[MWh/ 3 3 [MWh] Electricity T BRL] [m ] Water [m /T BRL]

90,5 0,25 250 0,70 90,0 0,24 245 0,60 89,5 0,23 240 0,50 89,0 235 0,40 0,22 88,5 230 0,30 0,21 88,0 225 0,20 87,5 0,20 220 0,10 87,0 0,19 215 0,00 2017 2018 2019 86,5 0,18 2017 2018 2019 Water [m3] | Water/VA [m3/T BRL] Electricity [MWh] | Electricity/VA [MWh/T BRL] Accumulated Accumulated Accumulated Accumulated 2018 2019 2018 2019 Consumption (m3) 246 239 Consumption (MWh) 90 87 Added Value (T-BRL) 409 359 Added Value (T-BRL) 409 359 Consumption Index 0,60 0,67 Energy Efficiency / Value (m3 / T-BRL) 0,22 0,24 Added (MWh / T-BRL) Performance Indicator Performance Indicator 10% 11%

39 Environmental Indicators

Scrap Steel Waste for Disposal

In 2019 was possible to reduce 7% in scrap generation, In 2019 Schaeffler Brazil reached the objective to be a zero but the added value had a decrease by 12%. waste to landfill plant, all wastes generated were sent to a sustainable destination. [t] Scrap Steel [t/T BRL] [t] Waste for Disposal [t/T BRL] 16.500 490 480 16.000 470 9.000 2,5 15.500 460 8.000 450 15.000 440 7.000 2,0 430 14.500 420 6.000 1,5 14.000 410 5.000 400 13.000 390 4.000 2017 2018 2019 1,0 3.000 Scrap Steel [t] | Scrap Steel/VA [t/T BRL] 2.000 0,5 1.000 Accumulated Accumulated 0 0,0 2018 2019 2017 2018 2019 Generation (t) 15.000 14.000 Waste for Disposal [t] | Waste for Disposal/VA [t/T BRL] Added Value (T-BRL) 409 359 Consumption Index Accumulated Accumulated 370 390 (t / T-BRL) 2018 2019 Performance Indicator Generation (t) 780 0 6% Added Value (T-BRL) 409 359 Consumption Index 2 0 (t / T-BRL) Performance Indicator -100%

40 Environmental Indicators

CO2 Emission

In 2019 we have a reduction of 7% in CO2 emission, but the added value had a decrease by 12%.

[t] CO2 Emission [t/T BRL]

14.000 35 12.000 30 10.000 25 8.000 20 6.000 15 4.000 10 2.000 5 0 0 2017 2018 2019

CO2 Emission [t] | CO2 Emission/VA [t/T BRL]

Accumulated Accumulated 2018 2019 Generation (t) 8.900 8.600 Added Value (T-BRL) 409 359 Consumption Index 2,20 2,24 (t / T-BRL) Performance Indicator 10%

41 Goals and Programs

Objectives and Programs

Numerous environmental protection actions have been implemented at this location since the last complete environmental statement. Many small steps have helped to achieve your environmental goals, not all of which can be documented here. The list below includes only those actions that were published in the last environmental statement.

Environmental goals Environmental program Completed? Actions Reduce absenteeism >> Implement health campaigns, >> 2019 average was 2,5% rate (target 1,8%) workplace ergonomics and labor gymnastics (daily). Keeps a structure in order to grant comfort and suitable attention to employees: occupational physicians, nurses, physiotherapists and speech and language therapists. Reduce energy consumption >> EnEffpro Program, with regular >> 2019 had an increase by 8,6% by 4,5% based on added meetings of the Energy Team aimed value to identify tasks and processes were energy can be used in efficiently and implementing the action plan of the Energy Workshop and Internal Audit. Maintain the average water >> Control de consume on each point, >> 4% of reduction consumption reached in awareness campaigns, regular 2018 trainings in the production. Conduct EHS training >> Create an annual schedule of >> All trainings and campaigns were training and campaigns. Complete completed 100% of activities. Check Safety items as: >> Perform a Safety Walk, every 2 >> The Safety Walk was performed in Chemical Products hand- months and send the Checklist and a different time and will pass for ling, floor, stairs, electrical Evidences to PVs and Chefs. changes. installations, PPE, Emergen- cy System) Improve communication >> Participate in Daily Walk, once a >> EnEHS issues were presented in with Operations aiming get week and talk about tasks related to all Daily Walks. better environmental and environmental and safety. safety performance Continuously improve the >> Perform an area evacuation training. >> In 2019 was not possible performance of the emer- because was happened the gency brigade alarm maintenance. Perform the EHS week >> Perform stands with EHS issues, in >> Was performed in July. order to heve a better absorption of the issues with activities and games. Perform the dumpsters >> Change the actual dumpsters to >> All production dumpsters were change in the production selective collection dumpsters in or- adequate. area der to improve the waste separation. Target achieved. Target partially achieved. Target not achieved.

42 Objectives and Programs

Improvements not included in annual target planning

EHS Certification

In 2019, we reached 1,523 employees (direct hourly) who participated of the EHS Certification, with questions about environmental, health and safety issues. It was possible to have on overview about the employee’s knowledge in this issue and the result was very nice, the most part of them reached more than 90% in the test. The employees also gave good feedbacks to the EHS team on participation.

EHS Week

Every year we have a special week to communicate Environ- ment, Energy, Health and Safety issues with the employees, a full week of awareness, during lunch, dinner and supper hours. Were created activities with different themes every day.

In 2019, we reached 1,580 employees who participated in the trainings, games and activities. The EnEHS week was held in July with the theme “The care is in your hands. Nothing changes if you don‘t change “and the activities included:

The importance of the correct use of PPE; Emergency Brigade; Selective collect; 6 R‘s (Reduce, Reuse, Reuse, Recycle, Rethink, Recover); Water rationalization; Defensive driving; Verification of vital signs; Massage; Stretching class; and, Ergonomics.

For EHS communications, the slogan „Rethink and React“ was used during the week, to make the employees rethink about his actions and react with new attitudes.

Another different activity was bringing employee’s children to sing a music “Depend on us” and during the presentation the children wore some PPE’s (glasses, gloves and hearing protection) in order to show the importance of the correct use. The presentation happened during the work time to all employees, and the company board had the opportunity to open the event.

43 Objectives and Programs

After concluding these steps and the achievement of the Zero Landfill goal, it was possible to identify several benefits for the company and the environment:

We also won the first Schaeffler Award in the Sustainable category, each finalist had an opportunity to pitch their application live to the board at the Executive Meeting on May 2019 in Copenhagen.

Zero Waste to Landfill

Dispose wastes in landfill brings impacts to the physical, biotic and socioeconomic environment, the waste does not comply with any of the 5 R‘s (Reduce, Reuse, Recycle, Rethink, Recover) and Schaeffler Brazil is coresponsible if the landfill contaminates the soil or water.

In order to eliminate environmental impacts, in 2019 Schaeffler Brazil achieved the goal to be a zero waste to landfill plant, now all wastes go to a sustainable disposal.

All non-recyclable wastes are sent to coprocessing (burning in cement ovens), a method used for contaminated waste, but due to the environmental concern, it was recently accepted for organic and non-recyclable waste, transforming waste in sustainable energy generation.

44 Objectives and Programs

Project – Pallets Tree Day

In 2018, Schaeffler Brazil started a project to reduce the Tree Day at Schaeffler Brazil was celebrated in September pallets purchase necessity and in consequence to reduce with the distribution of 300 tree seedlings to employees, the average of 70 tons of wood waste generated per month, who received information about the importance of a tree where most of them are composed by good pallets and and tips on how to plant. The employees loved the initiati- could be reused in the factory. ve and soon formed a huge line to pick up their seedlings, many commented that they would do the planting together With continuous actions, for example: with the children, so that they would learn the importance of Execution of workshop in the Ups; that gesture and take better care of our planet. Pallets storage organization; Avoid waste through marketing campaigns; It was gratifying to see the joy of people acquiring a seed- Storage area organization; and, ling, making plans about planting and how they would take Donation of scrap wood. care of it.

In 2019 the project reduced 41% in the purchase of pallets and 25% in wood waste generation.

For 2020 the target is to reach the reduction of 65% in pallets purchase.

Wood waste generation

Pallets purchase

45 Objectives and Programs

Building 12 emulsion center deactivation

In 2019 the building 12 emulsion center operated with only 5 machines, Face Grinders and Centerless, after some studies and tests together with the technology team it was possible to replace the emulsion used in the machines with cooling system, for mineral oil, bringing positive results such as maintaining cycle time and quality, thus allowing the emulsion central to be turned off and deactivated.

With the deactivation of the central, Schaeffler had benefits such as, cost reduction, reduction in energy consumption and adherence to a more sustainable product.

Energy/resource benefit Implementation Economy potential Implemented kWh/year ROI (years) Cost (R$) (R$) Economy (R$) m3/year R$ 225.000 R$ 421.000 kW 259 R$ 381.000 0,6

Family Day

Schaeffler Brazil opened its company’s doors for the Family Day, this occurred on October 2019 and provided a great joy for employees and their families.

With a defined route, employees were able to accompany the family members showing where they work and what they do in the company stands were placed in each building to show the locally produced products.

The day also count with a stand to talk about firefighting Production dumps adequation equipment and the emergency brigade, health advises and a space to encourage the reuse of disposable materials that In 2019, all dumps in the productive sectors were adequate can still be reused, employees and their families were able according to the current legislation of CONA-MA, dumps in to use the materials available to create objects such as the main colors are available for adequate wastes separation. flower vases and jewelry boxes, using their imaginations and helping the environment.

In addition, at the end of the walk, there was a children‘s party, with food stalls (income reverted to charities) and lots of fun for the kids.

46 Objectives and Programs

Environmental goals Environmental program Responsible Completion Reduce energy consumption by >> EnEffpro Program, with regular meetings of the Energy Team 2020 4,5% based on added value Energy Team aimed to identify tasks and processes where energy can be used in efficiently and implementing the action plan of the Energy Workshop and Internal Audit. Reduction of ACCR >> Implement continuous safety and ergonomic EHS 2020 (Target 2,21) assessments and improvements. Implement regular training and inspection in all production areas (daily walk) and implement an investigation program for all accidents to eliminate or reduce the risk. Reach the target of 1,60 >> Implement continuous safety and ergonomic EHS 2020 recordable accidents per assessments and improvements. Implement 200.000 man-hours regular training and inspection in all production areas (daily walk) and implement an investigation program for all accidents to eliminate or reduce the risk. Reach the target of 1,08 Lost >> Implement continuous safety and ergonomic EHS 2020 Workday Rate assessments and improvements. Implement regular training and inspection in all production areas (daily walk) and implement an investigation program for all accidents to eliminate or reduce the risk. Reduce absenteeism rate >> Implement actions to reduce both ergonomic HR 2020 (target 1,8%) and safety risks. Implement actions at the health department to more thoroughly evaluate and reduce accidents with lost days. Reduce water consumption >> Awareness programs, improvements in EnEHS 2020 by 2% process that makes use of water and monthly consumption control. Reduce energy consumption >> Awareness program, improvements in process EnEHS 2020 by 2% that makes use of energy and monthly consumption control. Reduce compressed air >> Awareness program, improvements in EnEHS 2020 consumption by 2% process that makes use of energy and monthly consumption control.

47 Validation

Validation and Responsibility

Statement from the environmental verifier

Dr.-Ing. Reiner Beer with EMAS environmental verifier registration number DE-V-0007, accredited or licensed for the scope 29.32 declares to have verified the site

Schaeffler Brasil Ltda. Avenida Independência, 3500 A, Éden CEP 18087-101 Sorocaba as indicated in the „environmental statement“ of the a. m. organization and confirms that the site meets all requirements of Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25th November 2009 on the voluntary participation by organizations in a community eco-management and audit scheme (EMAS) and of the Regulation (EU) 2017/1505 from 28th August 2017 (amendments of annexes I, II and III of the Regulation (EC) No. 1221/2009).

The signatures at the end of this statement confirm that >> The inspection and validation have been completed in full agreement with the requirements stipulated in (EC) directive no. 1221/2009 and regulation (EU) 2017/1505 >> The results of the inspection and validation confirm that no evidence of non-compliance with valid environmental specifications has been found >> The data and information of the „environmental statement“ of the site reflect a reliable, credible and correct image of all the sites activities, within the scope mentioned in the environmental statement.

This document is not equivalent to EMAS registration. EMAS registration can only be granted by a Competent Body under Regulation (EC) Nr. 1221/2009. This document shall not be used as a stand-alone piece of public communication.

Done at Sorocaba, on 24/06/2020

Dr.-Ing. Reiner Beer Environmental Verifier

48 Validation

Responsible for environmental protection at Responsible for environmental statement at the Schaeffler Brazil Ltda. location: the Schaeffler Brazil Ltda. location:

Juliana Morales Portela Alejandra Gabriela Pastorino Zanella Environmental Engineer Environmental Protection Coordinator

C ERTIFIC ATE C ERTIFICATE C ERTIFICATE

ISO 45001:2018 ISO 50001:2018 ISO 14001:2015

for for for

Schaeffler Technologies AG & Co. KG at the site Schaeffler Technologies AG & Co. KG Schaeffler Brasil Ltda. Industriestraße 1-3, 91074 Herzogenaurach at the site at the site

incl. the sites and their scope of application as to enclosure Industriestraße 1-3, 91074 Herzogenaurach Av. Independência, 3500-A Bairro Éden 18087-101 Sorocaba, Brasil incl. the sites and their scope of application as to enclosure The DAU-accredited environmental verifier hereby certifies that the named organization The Dakks accredited certification body for management systems hereby certifies that the The DAkkS-accredited certification body for management systems hereby certifies that the has implemented an Environmental Management System. named organization has implemented an Occupational Health and Safety Management System.. named organization has implemented an Energy Management System. Scope: Manufacturing of bearings and automotive components

With an audit it has been assessed that the requirements of With an audit it has been assessed that the requirements of ISO 45001:2018 With an audit it has been assessed that the requirements of ISO 14001:2015 are fulfilled. Occupational Health and Safety Management Systems are fulfilled. ISO 50001:2018 are fulfilled. Nürnberg, 9 October 2020 Nürnberg, 13th December 2019 Nürnberg, 4 December 2020 The certificate No. UG0242-2020 is valid until 15 December 2021. The certificate No AG0025-2019 is valid until 6th November 2022. The certificate No. EG0493-2020 is valid until 3 December 2023.

Date of initial certification November 6th 2019

Dr. Norbert Hiller Dipl.-Phys. Reinhard Mirz Dr. Reiner Beer Dipl.-Phys. Reinhard Mirz Leitender Auditor Zertifizierungsstelle Dr. Norbert Hiller Dipl.-Phys. Reinhard Mirz Environmental Verifier Environmental Verifier Lead auditor Certification Body DE-V-0007 Organisation, DE-V-0279

Intechnica Cert GmbH Umweltgutachterorganisation, Ostendstraße 181, 90482 Nürnberg Intechnica Cert GmbH Umweltgutachterorganisation, Ostendstraße 181, 90482 Nürnberg Intechnica Cert GmbH Umweltgutachterorganisation, Ostendstraße 181, 90482 Nürnberg

The next consolidated (entire) Environmental Statement will be published in April 2023 at the latest. In the years between, an annual update of the Environmental Statement will be compiled for validation by the environmental verifier.

49 Questions about environmental Protection at the location: Schaeffler Brazil Ltda.

Juliana Morales Portela Avenida Independência, 3500 A Sorocaba, São Paulo, 18087-101, Brazil

www.schaeffler.com [email protected]

Brazil: From other countries: 015 3335-1236 +55 15 3335-1575 015 3335-1972 +55 15 3335-1972

Fragen zum Umwelt- und Arbeitsschutz bei Schaeffler:

Norbert Hörauf Industriestraße 1-3 91074 Herzogenaurach

www.schaeffler.com [email protected]

Germany: From other countries: 09132 822058 +49 9132 822058 09132 82452058 +49 9132 82452058

The structure and contents of this report correspond to the requirements stated in Annex IV of Directive (EC) No. 1221/2009 of the European Parliament and Council dated November 25, 2009 regarding the voluntary participation of organizations in the eco-management and audit scheme (EMAS).

Moreover, the report contains information about issues pertaining to occupational safety, plant security and fire protection as well as general information on social benefits provided by the company and this location.

The location-specific part of this report only applies in conjunction with the general section of the environmental statement („environmental protection and occupational safety” report) from Schaeffler.

This publication or parts thereof may not be reproduced without our permission. +49 (0) 9131/490732 | [email protected] Tel. | BRENDLI LAYOUT and Design: Print