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 devel- opments 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 intro- duce numerous product innovations to help reduce our impact on the environ- ment. One of the highlights of 2003 was the result of our innovative achievements in pursuit of the eco-friendly diesel en- gine. 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 in- jection system reduces pollutant emis- sions by up to 20 percent as compared with the best existing diesel systems, while the new diesel particulate filter, which re- quires 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 auto- mobiles 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 so- ciety 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 opera- tions 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: pro- ducts 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 quali- ty, 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.