environmental statement - schaeffler group...industry, schaeffler is a recognized development...

Environmental StatementReport Environmental Protection and Safety

Location South Carolina 2014

2 | Contents

Contents | 3

Contents Environmental Protection South Carolina 2014

General Part

Foreword 4 A Message from the Partners 4 Foreword by the CEO 6

Company Portrait 7 Our Divisions 7 Success Factors 9 Our Brands 9 Code of Conduct for Responsible Company Management 11

Global Environmental Protection 13 Schaeffler Environmental Protection and Occupational Safety Policy 14 Environmental Communication 16 2011 EcoGlobe Awarded to Maria-Elisabeth Schaeffler 17

Environmentally Friendly Products 18

Social Responsibility 19

Location Part

Location 20 Introducing our Locations in South Carolina 20 Changes at the Location 24

Environmental Impacts 26 Direct Environmental Impacts 26 Indirect Environmental Impacts 31

Health and Safety 32 Risk Management 32 Health and Safety 34 Social aspects 35

Environmental Indicators 37 Key Indicators according EMAS III 38 Input 46 Output 52

Goals and Programs 58 Goals and Programs 58 New goals 2014 59

Validation and Responsibility 60

4 | Foreword

A Message from the Partners

Ladies and Gentlemen,

with its INA, LuK and FAG brands, Schaeffler is a global technology leader in the automotive

supplier industry for all renowned manufacturers as well as for customers from many other

industrial sectors.

A successful family-owned company, Schaeffler’s thinking and actions have a long-term orientation

and thus focus on durable success taking all aspects of global activities into account.

Schaeffler has set long-term ambitious goals with regard to innovative power, product quality,

process quality and delivery reliability as well as a growth trend that secures large investments

for successful innovations. At the same time, we have traditionally placed great emphasis on

combining economic success with responsible actions for our customers as well as the environ-

ment and our employees.

Worldwide compliance with the code of conduct for responsible and fair business and company

management are part of our company principles and goals, as are environmental protection and

occupational safety.

Schaeffler incorporates environmental protection in all processes: from development to purchasing

to manufacturing to disposal. Energy, water and materials are used sparingly and carefully.

Waste is avoided by returning materials to the production cycle whenever possible or by recycling

them.

An essential tradition of our family-owned company is to place great importance on the

responsibility we have for our employees, who guarantee the success of our company.

Georg F. W. Schaeffler, Maria-Elisabeth Schaeffler

Foreword | 5

Global compliance with high standards as well as recurring workstation analyses ensure the

highest possible level of workplace safety for all employees. We are convinced that – against the

background of our global responsibility – working, integrated environmental protection and

occupational safety management represents an important contribution to our company’s

sustainability.

Our responsibility also includes providing innovative products to handle key problems of the

future as well as developing and offering solutions that help reduce pollutant emissions in auto-

mobiles and increase the energy efficiency of vehicles and machines.

This report on environmental protection and occupational safety documents the fact that

Schaeffler successfully combines efficiency and environmental compatibility with the integration of

social factors both inside and outside of the company.

Maria-Elisabeth Schaeffler Georg F. W. Schaeffler

6 | Foreword

Foreword by the CEO

We believe that there is only one environment and that this environment is global ...

Schaeffler unites its three great well-known brands INA, FAG and LuK under one roof. With more

than 78,500 employees at over 180 locations worldwide we manufacture components and systems

for the automotive industry and sixty other industrial sectors.

Our commitment to active environmental protection and occupational safety has been firmly esta-

blished in our company’s management principles from the very beginning. One of the first of these

principles states, “Exemplary actions based on clearly defined ethical values determine our success.”

It goes on to say: “We assume responsibility for our environment.“ Meeting this requirement means

recognizing risks, analyzing and evaluating facts and making the right decisions for a particular si-

tuation. We established a group-wide environmental protection and occupational safety policy years

ago to serve as guidelines for our actions. These guidelines are evaluated regularly and basic ideas

are adjusted to match ever changing requirements.

What is special about our environmental protection and occupational safety management system

compared to many other companies is its worldwide implementation at the same high standard. We

do not make a distinction between our plants in Germany, Europe, the United States, Asia or other

manufacturing sites. We believe that there is only one environment and that this environment is glo-

bal and worth protecting everywhere. The same applies when it comes to evaluating our employees’

workplace environment. Here, we make no compromises in maintaining high standards, true to our

conviction that safety must have top priority – worldwide. We began more than ten years ago to

validate all plants to EMAS environmental protection regulations and to have them certified to

ISO 14001. In 2010, we reached this ambitious goal for all of our 70 production sites worldwide.

Our commitment to environmental protection has gained recognition by our customers as well as

political leaders. We have received the Ford Motor Company’s World Award for Environmental

Leadership Worldwide multiple times. Receiving the Environmental Medal of the State of Bavaria,

The European EMAS Award as well as the EcoGlobe in 2010 and 2011 serve as both a confirmation

for our policy and a motivation to continue on our course.

President and CEO of Schaeffler AG

Foreword | 7

Schaeffler AG

Schaeffler with its INA, LuK and FAG product brands develops and manufactures precision products

for everything that moves – in machines, equipment, vehicles and in aviation and aerospace.

Schaeffler is one of the world’s leading rolling bearing manufacturers and a renowned supplier to

the automotive industry. In 2013, this globally active group of companies, which is headquartered in

Herzogenaurach, Germany, generated sales of around 11.2 billion Euros. With over 78,500 employees,

Schaeffler is one of Germany’s and Europe’s largest family-owned industrial companies.

With 180 locations in over 50 countries, Schaeffler has a global network of manufacturing sites,

research and development facilities, distributors, engineering offices and training centers. Customer

proximity is important for developing market-specific products and fast service. All Schaeffler plants

worldwide work according to the most stringent quality and environmental standards, and these

plants have been certified to international standards. Through its “Code of Conduct” Schaeffler has

committed itself to maintaining high social and ethical standards.

Our Divisions

Automotive

The automotive industry is our main group of customers and represents 60 percent of sales. For this

industry, Schaeffler is a recognized development partner with systems expertise for the entire power

train – i.e. engine, transmission, chassis and accessory drives in passenger cars and commercial

vehicles. Schaeffler offers a wide range of products that ranges from energy-efficient solutions for

classic powertrains with internal combustion engines to products for hybrid vehicles to components

for electromobility. Precision products made by INA, LuK and FAG help vehicles use less energy and

emit fewer emissions without reducing driving comfort, safety and fun. Our customers worldwide

include all renowned auto mobile manufacturers and suppliers.

Our Automotive Aftermarket provides

replacement parts in OE quality as

well as com prehensive services to

distributors and independent repair

shops around the globe. It helps

promote quali fications and expertise

in brands and products and provides

marketing support.

CO2ncept-10% Study on reduction in fuel consumption and in CO2 emissions: ten percent less CO2 through consistent optimization of tried and tested technology

8 | Schaeffler Group

Industrial

Through its global organization and application support teams close to the market, our Industrial

Division supplies rolling and sliding bearing solutions, linear and direct drive technology in the INA

and FAG brands for around 60 industrial sectors. Its products include more than 225,000 items,

ranging from miniature bearings only a few millimeters in size, such as those used in dental drills,

to large-size bearings with an outside dia meter of several meters for wind turbines. The Industrial

Division’s renowned “Aviation and Aerospace” group designs high-precision bearings for airplanes,

helicopters and rocket engines such as the ones used in the Airbus A 380 and Boeing’s 787 Dream-

liner. Special applications with high-precision bearings, e.g. in medical engineering, complete our

product range.

Schaeffler’s Industrial Aftermarket (IAM) handles the replacement parts and service business for end

customers and distributors. IAM is a strong partner and offers its customers innovative products

and services that significantly improve the service life and performance of production facilities.

In addition to a comprehensive range of rolling bearing products, the IAM portfolio ranges from

mechanical assembly tools to intelligent online monitoring systems, from service training courses to

fully customized maintenance solutions.

Schaeffler Group | 9

Success Factors

Besides being close to the customer anywhere in the world, our strong employee focus and having

sustainable management, other important success factors include innovative power and creativity.

Around 6,000 employees develop new products, technologies, processes and methods at 40 R&D

locations to provide market-oriented solutions. With more than 1,800 patent applications and over

18,000 patents and patent applications currently in effect, Schaeffler is one of the innovation leaders

in manufacturing. Our primary development locations in Germany are in Herzogenaurach, Schweinfurt

and Bühl, all of which are linked to other development centers in Europe, Asia and North and

South America.

Growth through key trends

Foresight as well as long-term thinking and actions are what characterize our company. Schaeffler

identifies key trends at an early stage, invests in the research and development of new, future-

oriented products, defines new technology standards and prepares these standards for volume

production. In the areas of efficiency increase and CO2 reduction, renewable energies, mechatronics

and e-mobility, Schaeffler offers a wide range of innovative products such as rolling bearings with

optimized friction and performance, electromechanical components, rolling bearings with integrated

functions and direct drives.

The highly varied activities of the Automotive and Industrial Divisions with regard to electric mobility

are concentrated in our “E-Mobility System House.” Our wide range of products already offers a

multitude of solutions, ranging from sensor bottom brackets for electric bikes to start-stop systems

and hybrid clutches all the way down to electric drives.

Our Brands

INA

Founded in 1946 by brothers and Ph.D. holders Wilhelm

Schaeffler and Georg Schaeffler in Herzogenaurach, this

brand has become a global player as a rolling bearing manu-

facturer and automotive supplier. The INA brand primarily

includes rolling bearings, linear systems and engine compo-

nents. The success of this company with headquarters in Her-

zogenaurach began in 1949 when Georg Schaeffler developed

the needle roller and cage assembly – an ingenious invention

that helped needle roller bearings achieve their international

breakthrough. In 1952, an INA-made needle roller bearing re-

placed the previously used plain bearings in VW Beetle trans-

missions and represented the beginning of an “automotive

career.” Today, there are hardly any passenger cars without

INA engine and transmission components. Cam phasers and

hydraulic bucket tappets ensure higher performance, reduced

consumption, fewer emissions and more driving comfort in

modern engines.

The high quality and reliability of its rolling bearings, engine components and linear technology pro-

ducts have made Schaeffler a sought-after and reliable partner for numerous industrial customers.

The Schaeffler Headquaters

in Herzogenaurach, Germany


FAG

The FAG brand and the rolling bearing industry are inseparably linked. In 1883 Friedrich Fischer

designed a ball mill in Schweinfurt that allowed him for the first time to produce high-precision steel

balls in large quantities by machine. This invention is generally considered the historical beginning

of the rolling bearing industry, which started its triumphant road to success in Schweinfurt. Ever

since, FAG (Fischers Aktiengesellschaft) rolling bearings – a registered trademark since 1905 – have

been synonymous with firstclass products and expertise.

Since its acquisition by INA-Holding Schaeffler KG in 2001, FAG has been an important part of the

Schaeffler Group. Whether it is high-precision bearings for aviation and aerospace, sensor wheel

bearings in passenger cars or large bearings with an outside diameter of more than four meters for

wind turbines, FAG products are the first choice for all aviation and aerospace, manufacturing and

automotive customers. FAG’s range of products and services is the perfect complement for the INA

brand.

LuK

In the Schaeffler Group, LuK is the company that

focuses exclusively on the automotive industry.

LuK was cofounded by the Schaeffler brothers in

Bühl in 1965 and immediately took the techno-

logical lead in the market with its first innovative

product, a diaphragm spring clutch. The LuK

Group has been fully owned by Schaeffler since

1999. A number of groundbreaking products

followed, such as the self-adjusting clutch for

dualmass flywheels and the dry dual clutch.

Innovation and technological leadership are

important company pillars. Today, one out of

four cars worldwide has a LuK clutch.

LuK works closely with its customers to find

solutions for tomorrow’s automotive world.

Examples include dual clutch transmissions and

components for continuously variable transmis-

sions, products that provide added safety and

comfort and fewer emissions.

The Schaeffler Site Schweinfurt, Germany

The Schaeffler Site Bühl, Germany

Schaeffler Group | 11

Code of Conduct for Responsible Company Management

Schaeffler is continuing the social responsibility of all of its

companies and regards this as an essential requirement for

continued corporate success. The Schaeffler Code of Conduct is

based on the principles of the “Global Compact”, “The Global

Sullivan Principles of Corporate Social Responsibility” and the

standards of “Social Accountability International”.

The basic principles described here constitute a minimum

standard for us and do not affect country-specific additions that

are based on the relevant cultural circumstances.

Human Rights

We undertake to observe the internationally proclaimed human rights in our sphere of influence.

Forced Labor

We will not engage in or associate ourselves with any form of forced labor.

Child Labor

We will not engage in or associate ourselves with child labor in our operations.

Discrimination and Respect of Others

We mean to provide a workplace free of discrimination and harassment on the basis of gender, race,

skin color, religious beliefs, age, national origin, handicap, or sexual orientation. Employees deserve

each other’s respect.

Compensation and Working Hours

We recognize workers’ needs for adequate remuneration and observe the legally guaranteed mini-

mum wages in the respective labor market. We observe the rules that apply to working hours in all

of our operations.

Relationship with Employees and Employee Representatives

We respect our employees’ voluntary freedom of association. Independent of this, we also enable

our employees to express their interests directly to management on a continual basis.

Work-Life Balance

We are a family-owned enterprise. With our family-friendly arrangements and provisions we strive to

enhance the satisfaction and motivation of our employees and hence increase the performance of

the Group.

Health and Safety

We mean to provide a safe and healthy working environment that meets or exceeds applicable

standards for occupational health and safety. We will take steps to prevent injuries and occupational

illnesses caused by workplace conditions.

Workforce Development

We see the development of our employees as an essential investment in the future of our company.

We also value the development of social and technical expertise.


Environmental Responsibility

We maintain an environmental management system at all production sites worldwide and

continuously improve on this system. The minimum requirement is that local environmental pro-

tection laws and the specifications of the Schaeffler Group’s environmental protection system be

observed. We collaborate with our business partners and suppliers in meeting our environmental

responsibilities.

Conflict of Interests, Gifts and Attempted Bribery

We will not accept gifts or payments or hold (company) investments which could lead to a conflict

of interests. In particular, neither bribes nor any other illegal payments may be offered, made or

accepted.

Suppliers

We encourage, where practicable, our suppliers to introduce and implement similar principles of

social responsibility within their companies.

Responsibility

We believe each of our employees has an individual responsibility to follow this Code of Conduct

and encourage coworkers to abide by it as well. Management is responsible for enforcing principles

that become part of our rules or policies.

Global Environmental Protection | 13

Global Environmental Protection

Over the past decade, Schaeffler has successively established an environmental management system

that we can be proud of. All manufacturing sites have been certified to ISO 14001 and also to the

more stringent European Eco-Management and Audit Scheme (EMAS).

The Group’s non-European locations, e.g. in the United States, Brazil, China, India and Korea, have

also successfully passed inspection based on EMAS.

Since these countries are not part of the European Union, these locations cannot be registered and,

consequently, cannot be assigned a registration number. The certificates and environmental state-

ments as well as the Schaeffler environmental policy are available on the Internet.

With the validation and certification of its manufacturing sites, Schaeffler has been leading the

way in environmental protection. The company has received several awards for this commitment,

including the Bavarian Environmental Medal and has been awarded Ford Motor Company’s

“Recognition of Achievement, Environmental Leadership“ award three times.

Schaeffler’s commitment to environmental protection was recognized on a global scale when the

company was presented with the EMAS Award in 2005.

All of Schaeffler’s manufacturing sites have an environmental protection coordinator.

At each location, the plant manager is responsible for ensuring environmental compliance.

The “Competence Center for Safety and Environmental Protection” and its competence groups both

plan and coordinate the strategic orientation of the management system and provide support on

environmental protection issues to all Schaeffler Group locations worldwide.

14 | Global Environmental Protection

Schaeffler Environmental Protection and Occupational Safety Policy

Occupational safety and environmental protection are part of our management principles.

We create and maintain a safe working environment that promotes the health and performance of

our employees and embrace environmental responsibility to secure our company’s continued exis-

tence and success.

The following principles apply to all Group locations worldwide. We are firmly committed to our

employees, to society and to future generations.

Efficient Occupational Safety and Environmental Management

We embrace and continuously improve our occupational safety and environmental pro tection system.

We develop forward-looking strategies and work with our business partners to implement these stra-

tegies. We perform regular checks to determine how well our specifications have been implemented

and how successful our management system is in all divisions.

A Safe and Employee-Friendly Workplace

We believe that all work-related injuries and illnesses can be prevented. Highly motivated employees

and executives support our efforts to provide a zero-accident workplace. We give equal considera-

tion to the protection of our employees and contractors. That is why we base the design of new

workstations and work processes on the latest scientific findings and place great importance on the

ergonomic design of workstations.


Reliable Actions

We are committed to complying with all legislation and specifications regarding occupa-tional safety

and environmental protection. We act responsibly in accordance with our own regulations, which

often go above and beyond applicable laws. We plan, purchase, operate and maintain our machines

and facilities using a strategy that helps prevent

potential hazards and minimize risks and business disruptions. Our actions and

decisions are based on state-of-the-art technology.

Minimal Environmental Impact and Environmentally Friendly Products

We take every effort to prevent environmental impacts in all of our activities.

This includes our efforts to generate as little waste, wastewater, noise and other

emissions as possible. We use resources and energy sparingly. We produce environ mentally friendly

products by taking into consideration a product’s entire lifecycle.

Responsible Employees

We regularly provide information and training to our employees and business partners to ensure

they have the skills and expertise necessary to carry out their work safely and to minimize environ-

mental impacts in all company departments.

Preventive Measures

We take comprehensive measures to protect our employees from health hazards and

prevent damage to the environment. Comprehensive and effective emergency measures are in place

at all locations to ensure that our employees and visitors receive adequate care in the event of

injury.

Open Communication

We conduct an intensive and trusted dialog with interested parties. We provide information about

our occupational safety and environmental protection measures as well as the impact each of our

locations has on the environment.

President and CEO of Schaeffler AG

16 | Global Environmental Protection

Environmental Communication

The company’s intranet provides comprehensive information: contact persons, databases, a waste

guide and much more. This information is made available to all employees worldwide.

Company newsletters and notices are also used to inform employees.

Regular Conferences

Environmental protection conferences held every year allow participants to exchange information

and coordinate goals and actions. These conferences last several days and are attended by the

environmental protection coordinators from all locations. Since environmental protection con ferences

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 speci-

fication 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.

Regular Internal and External Audits

The level and progress of the company’s environmental protection are also monitored by regular

internal audits at all manufacturing sites as well as external audits by an independent environmental

verifier. These audits are planned and coordinated at company headquarters and carried out by the

Schaeffler auditor pool.

All locations receive an audit report that includes details of the current status and recommendations

for improvement.

Due dates and responsibilities are defined for all relevant measures.


Maria-Elisabeth Schaeffler receives 2011 EcoGlobe Person of the Year Award

The EcoGlobe Institute of the University of Duisberg-Essen has awarded the 2011 Eco Globe Person

of the Year Award to Maria-Elisabeth Schaeffler. The prize was awarded in honor of Mrs. Schaeffler’s

entrepreneurial achievements and cultural and social commitment as a company partner, Vice

Chairperson of the Schaeffler AG Supervisory Board as well as a member of the Supervisory Board at

Continental AG.

“Her keen sense of what is good for the company’s employees and with great self-discipline, has

allowed Maria-Elisabeth Schaeffler to build a business that has a highly remarkable corporate culture

and great economic success,“ the selection committee said in its statement. The strategic principles

to which Maria-Elisabeth Schaeffler has oriented the company are characterized by high social,

environmental and quality standards. She has molded the group into a modern, global and

successful family-owned business and given it a very sound strategic direction.“

The committee especially stressed Schaeffler’s activities in the fields of sustainability technologies,

including the optimization of tracking systems for solar plants, the development of wave energy

converters for the utilization of ocean power and drivetrain solutions for wind turbines as well as

the company’s dedication to electric mobility and its contribution to reducing fuel consumption in

internal combustion engines.

At the awards ceremony Maria-Elisabeth

Schaeffler said, “It is my great pleasure to accept

the Eco Globe Person of the Year Award. I regard

it not only as recognition of what I have done

in the 15 years since my husband passed away,

but also a confirmation and appreciation of

Schaeffler’s great technological achievements.”

The EcoGlobe, initiated in 2007, is the mobility

industry’s first international environmental award.

Under the patronage of the Environmental

Minister of the Federal Republic of Germany, it

is sponsored by DEVK Versicherungen and ACV

Automobil-Club Verkehr in cooperation with the

EcoGlobe Institute Duisburg-Essen and awar-

ded by an independent blueribbon committee

consisting of experts from the fields of science,

politics, business and culture.

2011 EcoGlobe Awarded to Maria-Elisabeth Schaeffler

Professor Ferdinand Dudenhöffer presents Maria-Elisabeth Schaeffler with the 2011 EcoGlobe Award

18 | Environmentally Friendly Products

Environmentally Friendly Products

Environmental pollution and the depletion of resources can largely be attributed to the increased

consumption of products. We must change our way of thinking and insist on environmentally friend-

ly products that use fewer resources and minimize the strain on the environment. Our “Integrated

Product Policy (IPP)” addresses this idea and aims to promote environmentally friendly products.

Schaeffler – Always One Step Ahead

This isn’t a new idea for Schaeffler; we have

embraced this idea for many years. We accepted

the challenge to design environmentally friend-

ly products a long time ago. What is new is the

methods and tools used to achieve this goal. How

can we utilize previously untapped potential to

improve the ecobalance of a product over its entire

lifecycle?

New Inroads

One way to make environmentally friendly products

is to increase the efficiency of the material and

energy used, thus reducing environmental impacts.

We continuously evaluate and design all material

and energy flows, from the time they enter the

company to the time they leave as products or

residual materials.

Comprehensive Data Management

The company’s own environmental data coordinator handles inputs and outputs of material and

energy flows for all processes and products at the respective plant. Material flow analyses help

further integrate environmental management into the company’s corporate units, such as Logistics,

Manufacturing and Financial Controlling. Existing processes and technologies are questioned tho-

roughly, and additional opportunities for improving processes are recognized and put into practice.

Information Networks

Environmental impacts occur even when resources are extracted. To make products even more

environmentally friendly, Schaeffler stays in close contact with its suppliers and customers.

A shared network is used to record and analyze environmental information along the entire product

chain. The insights gained allow new solutions to be recognized for environmentally friendly

products and sustainable development.

Recycling

We try to ensure that manufactured components are recycled at the end of a vehicle’s service life.

This is why LuK and INA are founding members of the Partslife recycling system.

Social Responsibility | 19

Social Responsibility

Environmental experts around the world agree that the global environmental problems of our time

can only be solved if both economic and social factors are considered. On the one hand, only

economically healthy companies pursue long-term environmental protection activities, and from a

social standpoint people who are starving or suffering social injustice cannot be motivated to

become active in protecting the environment. The “principle of sustainable development” is based

on these assumptions.

In line with the company philosophy of accepting new challenges,

Schaeffler has tackled the concept of sustainability. Generally, sustaina-

bility is not seen as an additional job to be completed but as an idea

that offers new opportunities since it links problems that were

previously treated separately. A view that integrates economic,

ecological and social issues allows new solutions to be found and

thus contributes to the sustainability of a company and of society as a

whole.

Although a lot has been said about sustainability and social responsi-

bility, not a great deal has been done. The examples below show that

things are different at Schaeffler:

Health as a Social Factor

Preventive occupational health and safety represents an essential social component at Schaeffler.

We confront this responsibility by implementing numerous measures and projects. Preventive medi-

cal check-ups, workstation inspections and medical workplace consultations, reintegration support

after long illnesses and fast medical help in emergencies are only some of the many services our

Medical Services team provides. We also offer a wide range of company sports groups.

Apprenticeships and Professional Training for Future Needs

With around 3,000 apprentices worldwide and high-quality vocational training, Schaeffler has a role

model function. Schaeffler employees can make use of a comprehensive range of continuing profes-

sional training courses to keep their skill sets up to date or for their personal development.

Retirees are Still Part of It All

Even after our employees retire, they have a number of opportunities to stay in touch with their

company. Social security, justice and consideration, training and company pension plans aren’t just

empty phrases. The Group does its part to benefit society, putting it on the right track in its efforts

to achieve sustainability.

Social security, justice and consideration, health protection, educational opportunities and company

pension schemes are not just hollow phrases at Schaeffler. Our company expresses its solidarity

with society, putting us on the right track to sustainability.

20 | Location

Introducing our Locations in South Carolina

Plant I and V Cheraw, SC

Plant I/V are located in Chesterfield County in Cheraw, SC. Cheraw’s population is approximately

5,800 people and the main industries include manufacturing (26 %) and construction (12 %).

The plants are located in an industrialized and commercial area with most residential areas being

greater than a quarter mile away.

The products manufactured at Plants I/V include: cage guided needle roller bearings, unit cages,

roller cage and shell bearings, finger followers and rocker arm assemblies, deep drawn products,

pins, axles and shafts, deep drawn races, precision product and assemblies, needles and rollers.

Plant I/V has 414,446 square feet (38,503 m2). There were 865 people employed at the end of

2013.

Processes unique to Plant I/V include the coating and slitting of steel. Strip steel is coated with

zinc phosphate to increase lubricity during the drawing process. Manganese phosphate coating is

applied and serves as a lubricant during the cold start-up of an engine. Steel strips are cut into

smaller widths to accommodate machine and part sizes. The coated steel is then shipped to other

Schaeffler Group plants for production. Since Plant I is the only Schaeffler Group to manufacture

needles and steel cages, processes such as hacking (needle cutting), polishing (surface finishing)

and welding are utilized. Unique leading edge technologies include: transfer and progressive

die presses, welded cages, low distortion heat treatment, needle and roller cut-off, hardening,

grinding and polishing, automated inspection (using cameras), shell and cage filling and finger

follower technology.

Water is obtained from the local public treatment works and used on site for washing and other

purposes. Wastewater is pretreated onsite, prior to discharge to the local sewer system in ac-

cordance with permit standards. Regular sampling ensures permit conditions are met. Stormwater

runoff is permitted but not required to be pretreated, prior to discharge. Plant I/V is classified as a

minor source of air emissions. A groundwater remediation system to remove and treat chlorinated

solvents has successfully operated at this location since 1999.

Significant environmental aspects for this site include: water usage, air emissions and energy

usage. Significant safety risks include incidents associated with materials handling and large

volume of flammable materials onsite. These are based upon a review of both the process and

risk assessments.

Location | 21

Plant II Chesterfield (Cheraw), SC

Plant II is located in Chesterfield County in Cheraw, SC. Cheraw’s population is approximately

5,800 people and the main industries include manufacturing (26 %) and construction (12 %).

The plant is located in an industrialized and commercial area with most residential areas being

greater than a quarter mile away.

The products manufactured at Plant II include: Lash Adjusters (ASEH), Bucket Lifters (TSTM),

AAR, transmission pin, Valve Lifter, Chains and MultiAir. MultiAir regulates intake valves for each

cylinder independently. MultiAir is designed to increase power and torque 10 percent while

slashing fuel consumption and emissions up to 10 percent. Plant II consists of 241,740 square

feet (22,073 m2) and approximately 673 people are employed.

Bar steel is cut, punched and formed in a special hot and cold forming process. Leading edge

technologies include hot and cold forming, post process control on all bore grinders,

crown face grinding with intelligent systems, automatic inspection and classification, special

rolling equipment for press fit assemblies and assembly equipment with functional testing.

Water is obtained from the local public treatment works and used on site for washing and other

purposes. Wastewater is pretreated onsite, prior to discharge to the local sewer system in

accordance with permit standards. Regular sampling ensures permit conditions are met.

Stormwater runoff is permitted but not required to be pretreated, prior to discharge.

Significant environmental aspects for this site is energy usage. Significant safety risks include a

large volume of materials onsite and incidents related to slip, trip and falls and ergonomic issues.

These are based upon a review of both the process and risk assessments.

22 | Location

Plant III Fort Mill, SC

Plant III, VI and the Corporate Office are located in York County, Fort Mill, SC. Fort Mill’s popula-

tion is approximately 12,419 people and the main industries include manufacturing (26 %) and

transportation / warehousing (10 %). The plant is located in an industrialized and commercial area

with most residential areas being greater than a quarter mile away.

Plant III consists of 135,000 square feet (12,600 m2) and approximately 342 people were emplo-

yed at the end of 2013. Products manufactured: encapsulated thrust bearings, underground races,

thrust cages, ground races, IC components. These parts are made for automotive and industrial

purposes. Larger automotive customers include Ford, GM, Chrysler, ZF and industrial customers

include John Deere, Harley Davidson, Black and Decker and Dana.

Plant III is a large assembly plant and includes assembly, heat treat, finishing and stamping

operations. Chemical deburring is a unique process to Plant III which is uses chemicals to remove

burrs from the surface of parts. Leading edge technologies include stamping- metal forming, low

distortion heat treatment, automated filling and assembly, automated inspection and functional

testing.

Detailed emergency procedures are in place because ammonia and specialized chemicals are used

at this location. Water is obtained from the local public treatment works and used on site for

washing and other purposes. Water is not required to be pretreated onsite, prior to discharge.

However, the discharge is regularly sampled to ensure conformance with permit conditions.

Stormwater runoff is permitted but not required to be pretreated, prior to discharge.

Significant environmental aspects for this site include: water and energy usage. Significant safety

risks include large volume of flammables materials onsite and injuries related to materials hand-

ling. These are based upon a review of both the process and risk assessments.

Location | 23

Plant VI Fort Mill, SC

Plant VI consists of 88,255 square feet (8,199 m3) and approximately 183 were employed at the

end of 2013. Products manufactured are variable valve timing systems. Variable valve timing

system and central valve products are supplied to Ford, GM, Chrysler and ZF.

Water is obtained from the local public treatment works and used on site for washing and

other purposes. Water is not required to be pretreated onsite, prior to discharge. However,

the discharge is regularly sampled to ensure conformance with permit conditions. Stormwater

runoff is permitted but not required to be pretreated, prior to discharge.

Significant environmental aspects for this site include: energy usage. Significant safety risks

include potential injuries from ergonomics and materials handling. These are based upon a review

of both the process and risk assessments.

Corporate Headquarters Fort Mill, SC

The corporate headquarters for Schaeffler Group Americas is located on the Fort Mill Campus.

The main corporate building consists of 40,000 square feet (2,787 m2) and houses support staff

such as accounting, engineering, legal, sales, logistics, marketing, human resources and other

service departments. The Engineering building consists of 30,000 square feet (3,716 m2) which

houses engineering support and a small manufacturing area for making sample prototypes.

Altogether, there are approximately 839 support personnel throughout Schaeffler USA including

those on the Fort Mill Campus. Environmental, Safety and Security aspects, impacts and risks are

similar to other office type environments.

24 | Location

Changes at the Location

Plant I

Changes at the facility since the last EMAS publication include: Increase in the square footage

by 800 square feet to make room for a new furnace and enclosure of 40 feet of outside space to

make more room inside the facility. There were major machine moves and changes to the factory

layout, primarily in 2011 and 2012. These changes were made to improve product line flow and

make space for new machines and products (ZF, KZK and BZ pins).

Major changes include:

>> Relocate Mill Supply

>> Install new grinders, hackers and inspection machines

>> Install Safed 8 furnace

>> Expand BZ Pin Area

>> Move Pifco 1 furnace to Plant 3

>> Prepare for install of new 12,000 gallon methanol tank

>> Relocate satellite canteen

>> Added Assembly Clean Room

>> Reduce energy usage by installing LED or T-5 lights and occupancy sensors

>> Expanded and reorganized Cage Department

>> Added new line to Cage Department

>> Added new line to Finger Follower Assembly

>> Relocated Manganese phosphate line from Plant 2

>> Added grinders to BZ line

>> Installed a 400 ton Minster press in the Finger Follower Department

>> Upgraded and replaced inefficient compressed air equipment

>> Installed energy efficient pump systems

Relevant organizational changes include hiring of an Environmental Technician to assist with ener-

gy management and recycling activities.

Plant II

Changes at the facility since the last EMAS publication include: Construction of a new building in

2012 to house the wastewater treatment system. The majority of changes were related to machine

moves and changes to the factory layout. These changes were made to improve product line flow

and make space for new machines and product (UniAir and ZF) produced in 2012 and 2013.

Major changes between include:

>> Parking lot improvements including new pavement and adding 20 new spaces

>> Consolidated scrap hopper locations

>> Moved 2 of 6 air compressors

>> Installed Hoffman filter system

>> Remodeled Security Guard station

>> Added Badge access to the Mill supply and Oil dock areas

>> Moved shipping and added cameras to improve CTPAT

>> Relocated Plant 4 switch gear and added point of entry for Progress/Duke Power

>> Removed Walls around old Tripod Turning

>> Filled in Old Tripod Grinding Trenches and coated floors with resistance epoxy

Location | 25

>> Installed 24 new machines and lines

>> Removed all high pressure sodium lights and replaced with T-5 lights

>> Installed an efficient chilled cool water system which was able to accommodate new UniAir

machines and existing hot forming operations

New products or product lines were developed at this location to support the following:

>> KOT (Plunger for ASEH)

>> Nissan Coated Tappet

>> RSTM (Pump and Tappet)

>> Ford Nano

An EHS Technician began full-time employment at Plant 2 to support operations related to UniAir,

ZF and Nissan.

Plant III

Changes at the facility since the last EMAS publication include: There were no new buildings cons-

tructed during 2011 - 2013. However, there were major machine moves and changes to the factory

layout. These changes were made to improve product line flow and make space for new machines

and product beginning to be produced. New product includes thrust bearings for the ZF/Chrysler

8/9 speed Programs and the GM 8L90/8L45 Programs.

The following are key changes between 2011 and 2013:

>> Move tool preparation area to former material storage area

>> Construct office area in new Tool Prep Department

>> Relocate the Hoesel washer adjacent to the Press Area

>> Relocate raw material storage to South and West sides of the plant

>> Install press die racks on wall in new Tool Prep area

>> Move Press 01 to make room for new press to be installed in 2012

>> Installed Durr Washer

>> Installed a new ETBAM line

Plant VI

Changes at the facility since the last EMAS publication include: There were no new buildings cons-

tructed during 2011 - 2013. However, there were machine moves and changes to the factory layout.

These changes were made to improve product line flow and make space for new machines. Two

new products include Family Zero and VW Audi. Organization changes included a change in Plant

Manager, Engineering Manager and Maintenance.

The following are key changes between 2011 and 2013:

>> EMAG Duo (2)

>> Gen 4/5

>> CV Index

>> 2 Chaku lines

>> Part of Ford line now used for Hemi

One of the primary objectives of environmental and safety protection is to prevent adverse effects

on the environment or employees and to minimize those effects that cannot be prevented. A large

number of measures have been implemented to achieve this objective.

The environmental effects and safety risks present at each location are evaluated on a regular

basis. The evaluation includes volume, frequency, severity, risks and possible measures to reduce

these impacts.

Legal Requirements and Permitted Limits

Schaeffler plants are subject to a variety of legal requirements. All applicable operational, training,

record keeping, recording, permits, and others requirements are summarized for each location.

The summary identifies not only the requirements but other important information like responsible

personnel, control mechanisms, due dates, etc. To ensure all legal requirements are met, these are

reviewed during internal and external audits.

Emissions

Manufacturing operations can directly affect air quality and introduce pollutants through our pro-

cesses and raw material usage. For example:

>> Organic compounds from chemical usage (oils, solvents, preservatives and washing chemicals);

>> Particulates (small particles) from grinding and heat treat operations;

>> Other emissions such as carbon monoxide (CO) and carbon dioxide (CO2) from the heat treat

process; and,

>> Regulated air compounds (glue, adhesive and coolant).

Schaeffler has reduced the volume of oil mist and particulates in the manufacturing areas by

installing new – and upgrading existing – air filtration equipment. Together, these changes have

reduced air emissions which provides a better working environment for our employees.

The EHS Department critically reviews new operations, equipment and chemical purchases to

minimize impact on air quality and the environment. Comprehensive air quality evaluations have

been performed at all manufacturing locations. This data is used to identify, prioritize and target

further reductions of air emissions.

Filtration equipment on power presses to reduce oil misting and mechanical filters are used in

assembly operations.

Water Protection

Water is used for both production and domestic purposes. Most water consumption occurs at

operating plants for cooling equipment, cooling air and cleaning parts. Water is recycled or

re-circulated in the majority of large-volume use operations such as heat treat furnaces, grinding

and heating, ventilation and air conditioning (HVAC) systems.

Water resources are conserved by the use of water meters on specific equipment, plumbing

fixtures which reduce/restrict water flow and by re-circulating non-contact cooling water.

Process wastewater is pretreated at Plant I/V and Plant II.

Direct Environmental Impacts

26 | Environmental Impacts

Chemicals in washers are tightly controlled through a systematic process. This results in less che-

mical usage and tighter quality controls.

Meters allow monitoring of water on specific machines and operations. This provides accurate con-

sumption data which can be used to set targets and also used by plant engineers when designing

systems to reduce the volume or chemicals in wastewater.

WASTE MANAGEMENT

Hazardous

Schaeffler‘s philosophy is to first prevent pollution at the source and to recycle or reuse whene-

ver possible. By keeping a strict inventory of chemicals and raw materials, excess waste is not

generated from disposing of old outdated products. Waste minimization practices help reduce the

overall volume of hazardous waste. Waste solvent is sent offsite to be fuels blended and solvent

is reclaimed.

Special and Non-hazardous Waste

Schaeffler maintains company-wide paper and cardboard recycling programs. The largest waste

streams – oil, coolant (oil based) and steel – are recycled along with containers and aluminum

cans. Wooden pallets are now recycled at most locations. A portion of our grinding swarf is recyc-

led at Plants I, II and VI. Many of our large customers receive parts in returnable packaging. This

reduces the amount of natural resources used for packaging production and the volume of waste

sent to landfills.

Opportunities to re-use or recycle waste streams are always investigated. Starting in 2012 we part-

nered with a waste management company that has allowed us to significantly improve waste se-

gregation and recycling in materials like plastics. Polypropylene Supersacks, ceramic beads, LDPE

plastic film, PET bottles and strapping, HMW Drums, 275 gallon totes and other types of plastic

waste are now recycled at our Cheraw and Chesterfield plants. This effort has moved Schaeffler

closer to its goal of Zero Landfill Waste under our GO TO ZERO campaign.

Environmental Remediation

Groundwater has been impacted by chlorinated solvents at Plant 1 in Cheraw. A pump and treat

system has been operational since 1999. The system pumps contaminated groundwater from the

ground, aerates it through air stripper trays, polishes it with activated carbon filter, then it is

discharged to the sanitary sewer system.

Environmental Impacts | 27

RAW MATERIALS AND NATURAL RESOURCE USAGE

Energy

Electricity supplies much of Schaeffler’s energy needs. This energy is produced from various types

of fuel sources.

Source: EPA E-Grid November 2010

Propane and natural gas are used in production processes. To reduce energy usage and costs, the

following practices for production facilities are utilized:

>> Routine maintenance on HVAC systems and operating equipment;

>> Temperature controls of operations, buildings and equipment;

>> Purchase and use of energy efficient equipment;

>> Optimizing usage of existing equipment;

>> Monitoring and measuring to optimize usage of resources and equipment;

>> Upgrade of older, less energy efficient equipment; and,

>> Tracking energy usage and costs.

Schaeffler takes advantage of lowering energy usage during plant construction or expansions.

During construction of new buildings or plant modifications, the walls and ceilings are insulated,

energy efficient lighting is installed, and HVAC and modern energy efficient equipment is utilized.

Building improvements such as interior and exterior painting, cleaning and lowering of light fixtu-

res and upgrading to energy efficient lighting modifications are implemented on a regular basis.

These simple modifications increase the lighting illumination while reducing energy usage. The

end result is a nicer environment for the employees and customers while becoming more energy

efficient.

Schaeffler is taking a proactive approach to energy management. The Schaeffler Energy Manage-

ment group performs annual reviews of manufacturing plants to identify energy savings opportu-

nities. A worldwide energy policy has been implemented and Schaeffler South Carolina plants are

performing activities to become ISO 50001 certified in 2015.

[%] Fuel Mix Comparison

Your Region

National

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

Non-Hydro Renewables Hydro Nuclear Oil Gas Coal


Energy improvements projects and programs implemented at the South Carolina plants include the

following:

>> Upgrade of lighting systems (lights and ballasts) with more energy efficient ones.

>> Checking energy usage hot spots using thermal imagery.

>> Identification and repair of compressed air leaks.

>> Optimization of air compressors.

>> Installation of building management systems to control lighting, air compressors,

heating and cooling.

>> Capture and reuse of heat.

>> Replace compressed air blow off nozzles with engineered nozzles.

>> Installation of automatic lighting sensors.

>> Utilization of free cooling from outside air or cooling towers.

>> Turning off machines and workstations during breaks and weekends.

>> Energy workshops to identify additional opportunities for energy savings.

>> Modification of air compressor run times.

>> Increasing energy awareness through training, posters, posting of energy metrics.

>> Log equipment energy usage to create an energy balance.

>> Use energy balance to prioritize focus areas for energy reduction.

>> Modification of furnace flame curtains from propane to natural gas.

>> Installation of equipment with variable frequency drives (VFDs).

Chemical Usage

Typical chemicals stored and used at each location include: soaps, oils, greases, solvents, emulsi-

ons, acids, bases, abrasive media, methanol, natural gas, ammonia and smaller amounts of other

chemicals. Employees are annually trained in chemical recognition, use and handling. Special

storage areas, operating procedures and training exist for high hazard chemicals (flammable, toxic

or corrosive). Only designated personnel are allowed to handle high hazard chemicals.

Schaeffler Group has a worldwide standard that contains a list of prohibited and declarable

substances for all production chemicals. Prior to the purchase of any new chemical, an extensive

evaluation is performed to ensure it meets environmental, safety, health, quality and legal require-

ments.

Environmental incidents and impacts

Risk assessments are completed to minimize the likelihood of any potential environmental im-

pacts. There were a few incidents that occurred since the last EMAS Statement.

Due to the age of piping at our Cheraw facility, in 2011 a breach occurred in both a wastewater

treatment and methanol line. Both lines were repaired, and piping was upgraded. Required notifi-

cations were made.

Elevated levels of zinc in wastewater discharges from the Fort Mill Campus occurred in 2011. It was

determined wash water from a production process was contributing to the high levels. A chemical

substitution was made and the campus was compliant in 2012. Oil and grease levels in wastewa-

ter discharges continued to be a problem in 2013. The root cause was determined to be oil from

the compactor storage area. This area has been modified to address the problem.


Noise

External noise does not have a significant environmental impact because all Schaeffler plants are

located in industrialized or commercial areas. Outside noise surveys have been completed and

confirm noise levels are acceptable. Most residential areas are located greater than a quarter mile

from each facility. No noise complaints have been received from our neighbors.

Noise from equipment inside the factories is minimized through the installation of engineering

controls such as sound enclosures. Comprehensive noise surveys are completed every two years

at all manufacturing locations. The most recent noise survey was conducted in 2012. Results show

all plants have some areas that are above the OSHA action level of 85 decibels (dB) and, in some

cases, above the OSHA Permissible Exposure Limit of 90 dB. An active hearing conservation pro-

gram is in place that involves the wearing of hearing protection and regular monitoring of emplo-

yees hearing. Areas designated as “hearing protection” are targeted for noise reduction.


Products and Packaging

Schaeffler contributes to energy savings worldwide for our customers, since bearings reduce

energy and friction. This means less use of natural resources like fossil fuels.

The majority of Schaeffler’s products, once they have reached the end of their life can be

recycled since they are made of steel. In fact, the raw material (steel) purchased to manufacture

our products already contains a relatively high (average > 75 %) recycled steel content.

Smaller volume products made of plastic can be recycled at the end of their life.

External transport and logistics

Raw materials are delivered to Schaeffler by large diesel freight trucks. Parts are distributed in a

similar manner with the exception of those transported oversees (via sea freight). The logistics

Department minimizes transportation impacts by maximizing truckload capacities and effectively

scheduling deliveries.

Employee transport

Indirect CO2 emissions are generated by vehicles from Schaeffler employees commuting to work.

CO2 emissions vary depending upon the length of the commute and type of vehicle traveled in.

There are limited options to reduce CO2 emissions because no major public transportation systems

are located in the nearby vicinity of our manufacturing locations, except in Fort Mill. Environmental

training programs review these indirect impacts and we encourage employees to make a difference

whenever possible.

Suppliers and Contractors

Schaeffler suppliers have a variety of environmental impacts ranging from the packaging and

chemicals they use, to the environmental principles they adhere to. Schaeffler Group has adop-

ted the company wide standards to eliminate and reduce certain hazardous substances. Prior to

purchasing production chemicals, Schaeffler requires suppliers provide detailed information about

their products and certify they conform to our environmental and safety standards. Suppliers are

rated on a number of criteria, including certification to ISO 14001.

Contractors on Schaeffler property can contribute to environmental aspects indirectly through

spills, accidents, fires and mishandling of waste. Schaeffler Group developed a safety and environ-

mental guidebook for contractors to minimize these potential impacts. Contractors are trained in

these requirements and are required to certify they comply with our rules and policies. To reduce

potential off-site impacts from waste handlers, audits are periodically conducted on waste dispo-

sal contractors and transporters. This confirms they meet our high level of standards.

Indirect Environmental Impacts


Risk Management

Fire Protection and Emergency Response

Schaeffler Group maintains dedicated equipment and systems to respond to fires and emer-

gencies. Typical emergency response equipment includes: sprinkler systems, fire extinguishers,

emergency alarms, weather-band radios and various communication systems. This equipment is

checked on a regular basis to ensure proper working order in the event of a fire or emergency.

Procedures for fire drills, emergency weather conditions, spills and other emergencies have been

prepared and employees are trained in these areas. Audits are conducted both internally and

externally as an added check to ensure these systems are working when needed. Several locations

have achieved the status and award of a “Highly Protected Risk” by our fire insurance carrier.

Visual emergency shutdown procedures for critical equipment such as tanks, electric and

natural gas were prepared and posted at these locations.

PLANT SECURITY

Access Control and Security Management

Security takes high priority at our plants. All locations are surrounded by chain-link fencing, mo-

nitored with security cameras and employee property access is limited through electronic means.

Full-time Security personnel are located at each plant on a 24-hour basis. Contractors and visitors

are required to check in with the security guard. Badges are provided to visitors and contractors

and they are escorted through the plants with a site contact.

32 | Health and Safety

Health and Safety | 33

Check up for dangerous goods transport

Special procedures exist for deliveries of hazardous materials like methanol, propane or ammonia.

Schaeffler employees ensure all hazardous material delivery procedures are followed. In some ca-

ses, road access is block during delivery, driver confirmations are made and security observes with

cameras during the filling process. All paperwork is checked before the driver leaves. Periodically,

audits are conducted hazardous material deliveries.

Security

The Schaeffler Group subscribes to and meets the requirements of the Customs-Trade Partnership

Against Terrorism (C-TPAT) program. C-TPAT is a voluntary program to develop a more secure

border by focusing on the physical security of the production, transportation and importation

elements of the supply chain. As part of Schaeffler Group’s compliance strategy, we implemented a

corporate policy and documented a program of operational procedures and processes to enhan-

ce security both internally and throughout our supply chain. The benefits of this partnership and

resulting anti-terrorism action results in a safer environment plus expedites Customs clearances

of imported goods improving our ability to efficiently and safely produce/ship on-time products to

our customers.

The Department of Homeland Security (DHS) coordinates the Chemical Facility Anti-Terrorism

(CFAT) program. The purpose of this program is for facilities designated as a high chemical

risk to enhance security and establish procedures to reduce risks associated with terrorists.

Information was submitted to the DHS on several facilities in SC.

In the last few years, physical and procedural security improvements were made at several loca-

tions including: the upgrading of security cameras, lock door access, improved parking, limited

gate access and retraining of security staff. All SC locations currently meet best practices of gene-

ral security guidelines. Programs have been put in place to address the security of scrap parts and

packaging. Employees are trained in general security awareness.

Emergency Plans and Management

Emergency response plans identify actions to take in the event of a fire, medical, security, severe

weather, spill, release or other type of emergency. Employees are trained annually on the proper

emergency response activities so they know how to react in an emergency situation. The plans

contain procedures on how to respond to each type of emergency and contact information for

management, regulatory agencies, responders and insurance companies. These plans are reviewed

and updated on a regular basis.

Health and Safety

Safety Indicators

Schaeffler Group experienced an overall decline in OSHA recordable from 2010 through 2013.

Efforts have focused on improving housekeeping to reduce slip, trips and falls in addition to redu-

cing lifting, pushing and pulling incidents. The number of accidents per hundred employees and

accounting for man-hours worked, tracks a steady decline. While this has been an improvement,

the goal of Schaeffler is to significantly reduce this number. In order to do this, programs on ma-

terials handling, slips, falls and safety culture have been implemented. Future Safety targets will

reflect these programs. First aids and near misses are tracked and reported to management.

The total number of recordable accidents has steadily decreased from 2010 to 2013. Incident rates

have decreased as well and were below the industry average for 2010-2013.

Lost time frequency rates have decreased from 2010 to 2013. The ball and roller bearing industry

incident rat in 2013 is 3.7.

Programs designed to reduce accidents and lost work time have been put in place and this

number is expected to decrease over the next few years.

Lost Time Injury Frequency

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0

2005 2006 2007 2008 2009 2010 2011 2012 2013

Incident Rate

12.0

10.0

8.00

6.00

4.00

2.00

0

2005 2006 2007 2008 2009 2010 2011 2012 2013

34 | Health and Safety

Health and Safety | 35

Social aspects

Schaeffler invests in the local community by providing education in technical training and through

our Apprentice program. Schaeffler partners with York Technical College in Fort Mill, Northeastern

Technical College in Cheraw and Spartanburg Community College in Spartanburg, SC. The appren-

tice program is about 3 1/2 years and is comprised academic/shop theory studies and on-the-job

training. The training takes place at our manufacturing sites in South Carolina. Tuition is paid by

Schaeffler and students are compensated during their training. Upon successful completion of the

program, participants are hired as regular, full- or part-time employees.

Schaeffler supports local community and charitable events with both time and financial support.

Examples include Booster clubs at local high schools, Pee Dee Coalition for Domestic Violence,

House on the Hill Renovation and Chamber of Commerce. Schaeffler donates annually to the

National Fire Safety Council which conducts fire prevention education for local preschool and

elementary aged children. Our most recent donation will help of 300 children with fire prevention

education.

Blood drives are held at least twice a year to assist the local Red Cross and hospitals to meet the

demand for blood.

Employees from the Carolina plants and other Schaeffler employees from around the world do-

nated money and support to fellow employees who were affected by the EF5 tornado that struck

Joplin, Missouri in 2011.

Schaeffler typically has several social events (for example holiday party, cookout, BBQ dinner and

spring event) for our employees and their families to thank them for their support and in making

Schaeffler a successful company.

38 | Key Indicator

Key Indicators according EMAS III Cheraw, SC Plant I & V

Absolute Relative*

Database 2013 2012 2011 2013 2012 2011

Reference dataAdded value in Mio. Mio. $ 74.0 72.0 71.0

General DataTotal headcount [EMP] 872 766 712

Size of property [ac] 35.0 35.0 35.0

Total sealed surface [ac] 20.0 20.0 20.0 0.00 0.00 0.00 [ac / Mio $]

Biodiversity [%] 57.0 57.0 57.0

Input

Water [gal] 95,088,700 96,879,700 92,460,000 1,284,982 1,347,423 1,307,779 [gal / Mio $]

Electricity ∑ [kWh] 57,305,280 54,609,200 52,844,060 774,396 759,516 747,441 [kWh / Mio $]

Amount of electricity from renewable energy (only external supply) [kWh] 2,865,264 2,730,460 2,642,203 38,720 37,976 37,372 [kWh / Mio $]

Amount of electricity generated inhouse from renewable energy [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio $]

Percentage of renewable energy with regard to overall consumption [%] 5.00 5.00 5.00

Natural gas [kWh] 2,500,485 2,337,244 2,212,982 33,790 32,507 31,301 [kWh / Mio $]

amount from renewable energies [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio $]

percentage from renewable energies [%] 0.00 0.00 0.00

Light fuel oil [gal] 0.00 0.00 0.00 0.00 0.00 0.00 [gal / Mio $]

amount from renewable energies [gal] 0.00 0.00 0.00 0.00 0.00 0.00 [gal / Mio $]


Fuels for int. logistics

>> diesel [gal] 0.00 0.00 0.00 0.00 0.00 0.00 [gal / Mio $]



>> gasoline [gal] 0.00 0.00 0.00 0.00 0.00 0.00 [gal / Mio $]



Distict heating [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio $]



Propane / LPG [lbs] 457,588 402,610 282,156 6,184 5,600 3,991 [lbs / Mio $]

Methanol [lbs] 1,835,548 1,615,741 1,975,527 24,805 22,472 27,942 [lbs / Mio $]

Key Indicator | 39

Absolute Relative*

Database 2013 2012 2011 2013 2012 2011

OutputWaste ∑ [lbs] 22,436,662 20,227,493 18,237,306 303,198 281,328 257,953 [lbs / Mio $]

Non hazardous waste ∑ [lbs] 1,093,559 1,446,598 1,612,980 14,777.82 20,119.58 22,814.43 [lbs / Mio $]

>> Paper, cardboard [lbs] 218,930 104,340 0.00 2,958.51 1,451.18 0.00 [lbs / Mio $]

>> Waste wood [lbs] 396,395 654,380 679,060 5,356.69 9,101.25 9,604.81 [lbs / Mio $]

>> Domestic waste [lbs] 365.920 608,380 777,820 5,089.29 8,461.47 11,001.70 [lbs / Mio $]

>> Others [lbs] 112,314 79,498 156,100 1,517.76 1,105.67 2,207.92 [lbs / Mio $]

Hazardous waste ∑ [lbs] 5,442,664 4,597,606 4,268,012 73,550 63,944 60,368 [lbs / Mio $]

>> Grinding swarf / sludge [lbs] 5,132,260 4,011,796 3,625,743 69,354.86 55,796.88 51,283.49 [lbs / Mio $]

>> Waste emulsion [lbs] 0.00 346,300 363,334 0.00 4,816.41 5,139.09 [lbs / Mio $]

>> Waste oil [lbs] 259,099 177,840 237,900 3,501.34 2,473.44 3,364.92 [lbs / Mio $]

>> Others [lbs] 51,305 61,670 41,035 693.31 857.72 580.41 [lbs / Mio $]

Scrap (ferrous + non-ferrous) ∑ [lbs] 15,900,439 14,183,289 12,356,314 214,871 197,264 174,771 [lbs / Mio $]

CO2-equivalents ∑ [lbs] 55,219,622 54,885,588 57,752,351 746,211 763,360 816,865 [lbs / Mio $]

CO2 emissions from combustionprocesses at this site [lbs] 5,219,250 4,655,521 4,676,192 70,530 64,750 66,141 [lbs / Mio $]

CO2 emissions from electricity obtained from external sources [lbs] 47,448,772 45,216,418 48,405,159 641,200 628,879 684,656 [lbs / Mio $]

CO2 emission factor per kWh electricity obtained from external sources

[lbs / kWh] 1.00 1.00 1.00

CO2 emissions from district heating obtained from external sources [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

CO2 equivalent from the refrigerant agent amounts refilled due to leakages [lbs] 2,551,600 5,013,650 4,671,000 34,481 69,731 66,068 [lbs / Mio $]

SO2 - emissions from com bustion processes at the site [lbs] 10.0 9.00 9.00 0.10 0.10 0.10 [lbs / Mio $]

NOx - emissions from com bustion processes at the site [lbs] 3,864 3,428 3,428 52.0 48.0 48.0 [lbs / Mio $]

Particular mater emissions [lbs] 4.00 4.00 3.00 0.06 0.05 0.04 [lbs / Mio $]

from combustion processes at this site [lbs] 4.00 4.00 3.00 0.06 0.05 0.04 [lbs / Mio $]

from production and other processes [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / 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/).

Energy Input ∑ [kWh] 66,983,589 63,263,662 61,553,816 905,184 879,884 870,634 [kWh / Mio $]

amount of renewable energywithregard to total energy input [kWh] 2,865,264 2,730,460 2,642,203 38,720 37,976 37,372 [kWh / Mio $]

percentage of renewable energywith regard to total energy input [%] 4.00 4.00 4.00

Emulsion concentrates [lbs] 91,147 92,407 90,950 1,232 1,285 1,286 [lbs / Mio $]

Processing oils [lbs] 2,298 0.00 0.00 31.0 0.00 0.00 [lbs / Mio $]

Metal raw material [lbs] 58,942,160 58,986,887 48,175,417 796,516 820,402 681,406 [lbs / Mio $]

Metal semi finished products (external supply) [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

Other raw materials [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

40 | Key Indicator

Key Indicators according EMAS III Chesterfield, SC Plant II

Absolute Relative*

Database 2013 2012 2011 2013 2012 2011





Biodiversity [%] 41.0 41.0 41.0

Input

Water [gal] 15,378,000 11,181,295 6,917,000 229,522 177,791 169,951 [gal / Mio $]





Natural gas [kWh] 85,870 86,749 26,376 1,282 1,379 648 [kWh / Mio $]
















Propane / LPG [lbs] 108,665 117,530 72,000 1,622 1,869 1,769 [lbs / Mio $]

Methanol [lbs] 502,018 600,300 319,013 7,493 9,545 7,838 [lbs / Mio $]

Key Indicator | 41

Absolute Relative*

Database 2013 2012 2011 2013 2012 2011


Non hazardous waste ∑ [lbs] 868,563 912,984 769,349 12,964 14,517 18,903 [lbs / Mio $]

>> Paper, cardboard [lbs] 113,136 104,340 108,280 1,689 1,659 2,660 [lbs / Mio $]

>> Waste wood [lbs] 411,640 465,240 425,208 6,144 7,398 10,447 [lbs / Mio $]

>> Domestic waste [lbs] 341,000 340,060 232,520 5,090 5,407 5,713 [lbs / Mio $]

>> Others [lbs] 2,787 3,344 3,341 42.0 53.0 82.0 [lbs / Mio $]

Hazardous waste ∑ [lbs] 2,527,000 1,864,282 1,518,763 37,716 29,644 37,316 [lbs / Mio $]

>> Grinding swarf / sludge [lbs] 2,295,950 1,617,485 1,182,679 34,268 25,719 29,058 [lbs / Mio $]

>> Waste emulsion [lbs] 0.00 0.00 114,984 0.00 0.00 2,825 [lbs / Mio $]

>> Waste oil [lbs] 229,850 246,800 220,400 3,431 3,924 5,415 [lbs / Mio $]

>> Others [lbs] 1,200 0.00 700 18.0 0.00 17.0 [lbs / Mio $]



CO2 emissions from combustionprocesses at this site [lbs] 2,271,182 1,271,010 699,805 33,898 20,210 17,194 [lbs / Mio $]



[lbs / kWh] 1.00 1.00 1.00


CO2 equivalent from the refrigerant agent amounts refilled due to leakages [lbs] 91,800 409,700 601,800 1,370 6,515 14,786 [lbs / Mio $]


NOx - emissions from com bustion processes at the site [lbs] 1,920 1,027 571 29.0 16.0 14.0 [lbs / Mio $]









Emulsion concentrates [lbs] 46,752 38,990 13,697 698 620 337 [lbs / Mio $]

Processing oils [lbs] 416,976 399,097 252,019 6,224 6,346 6,192 [lbs / Mio $]




42 | Key Indicator

Key Indicators according EMAS III Fort Mill, SC Plant III

Absolute Relative*

Database 2013 2012 2011 2013 2012 2011





Biodiversity [%] 73.0 73.0 73.0

Input

Water [gal] 10,378,750 9,363,200 6,865,860 324,336 284,596 215,231 [gal / Mio $]





Natural gas [kWh] 2,581,080 2,031,571 2,189,243 80,659 61,750 68,628 [kWh / Mio $]
















Propane / LPG [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

Methanol [lbs] 942,652 533,600 785,714 29,458 16,219 24,631 [lbs / Mio $]

Key Indicator | 43

Absolute Relative*

Database 2013 2012 2011 2013 2012 2011


Non hazardous waste ∑ [lbs] 2,338,199 1,417,740 1,973,507 73,068.72 43,092.40 61,865.42 [lbs / Mio $]

>> Paper, cardboard [lbs] 117,588 61,200 40,220 3,674.63 1,860.18 1,260.82 [lbs / Mio $]


>> Domestic waste [lbs] 256,120 262,080 283,280 8,003.75 7,965.96 8,880.25 [lbs / Mio $]

>> Others [lbs] 1,674,851 784,460 1,366,327 52,339.09 23,843.77 42,831.57 [lbs / Mio $]

Hazardous waste ∑ [lbs] 552,600 611,650 494,520 17,269 18,591 15,502 [lbs / Mio $]

>> Grinding swarf / sludge [lbs] 522,160 593,700 458,060 16,317.50 18,045.59 14,359.25 [lbs / Mio $]

>> Waste emulsion [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

>> Waste oil [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

>> Others [lbs] 30,440 17,950 36,460 951.25 545.59 1,142.95 [lbs / Mio $]



CO2 emissions from combustionprocesses at this site [lbs] 2,441,721 1,635,724 2,052,034 76,304 49,718 64,327 [lbs / Mio $]



[lbs / kWh] 1.00 1.00 1.00


CO2 equivalent from the refrigerant agent amounts refilled due to leakages [lbs] 0.00 431,912 13,600 0.00 13,128 426 [lbs / Mio $]


NOx - emissions from com bustion processes at the site [lbs] 1,516 967 1,271 47.0 29.0 40.0









Emulsion concentrates [lbs] 24,427 15,096 11,943 763 459 374 [lbs / Mio $]

Processing oils [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]




44 | Key Indicator

Key Indicators according EMAS III Fort Mill, SC Plant VI

Absolute Relative*

Database 2013 2012 2011 2013 2012 2011





Biodiversity [%] 14.0 14.0 14.0

Input

Water [gal] 8,303,000 6,804,543 7,944,710 437,000 341,937 459,232 [gal / Mio $]


Amount of electricity from renewable energy (only external supply) [kWh] 578,280 567,775 532,790 30,436 28,531 30,797 [kWh / Mio $]



Natural gas [kWh] 213,942 160,896 76,199 11,260 8,085 4,405 [kWh / Mio $]
















Propane / LPG [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

Methanol [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

Key Indicator | 45

Absolute Relative*

Database 2013 2012 2011 2013 2012 2011


Non hazardous waste ∑ [lbs] 1,391,745 1,097,184 681,349 73,249.74 55,134.87 39,384.34 [lbs / Mio $]

>> Paper, cardboard [lbs] 117,588 104,200 35,740 6,188.84 5,236.18 2,065.90 [lbs / Mio $]


>> Domestic waste [lbs] 178,160 147,300 88,360 8,952.76 7,402.01 5,107.51 [lbs / Mio $]

>> Others [lbs] 980,567 738,304 522,029 51,608.79 37,100.70 30,175.09 [lbs / Mio $]

Hazardous waste ∑ [lbs] 109,340 66,460 53,180 5,494 3,340 3,074 [lbs / Mio $]

>> Grinding swarf / sludge [lbs] 109,340 66,460 53,180 5,494 3,340 3,074 [lbs / Mio $]

>> Waste emulsion [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

>> Waste oil [lbs] 980,567 0.00 0.00 49,274.72 0.00 0.00 [lbs / Mio $]

>> Others [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]

Scrap (ferrous + non-ferrous) ∑ [lbs] 1,021,512 890,444 752,595 53,764 44,746 43,503 [lbs / Mio $]


CO2 emissions from combustionprocesses at this site [lbs] 95,085 71,509 33,866 5,004 3,593 1,958 [lbs / Mio $]



[lbs / kWh] 1.00 1.00 1.00


CO2 equivalent from the refrigerant agent amounts refilled due to leakages [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]


NOx - emissions from com bustion processes at the site [lbs] 41.0 31.0 15.0 2.00 2.00 1.00 [lbs / Mio $]







amount of renewable energywithregard to total energy input [kWh] 578,280 567,775 532,790 30,436 28,531 30,797 [kWh / Mio $]


Emulsion concentrates [lbs] 26,730 16,366 14,841 1,407 822 858 [lbs / Mio $]

Processing oils [lbs] 136,776 164,868 137,978 7,199 8,285 7,976 [lbs / Mio $]

Metal raw material [lbs] 0.00 0.00 0.00 0.00 0.00 0.00 [lbs / Mio $]



Natural gas usage at Plant 1/5 has increased due to installation of an additional furnace and the

change over from propane usage to natural gas in the furnace flame curtains.

InputNatural Gas

[MWh] Natural Gas Usage Plant I & V [kWh / Mio $]

2,550

2,500

2,450

2,400

2,350

2,300

2,250

2,200

2,150

2,100

2,050

2011 2012 2013

Gas Usage [MWh] kWh / Value Added [Mio $]

33,500

34,000

30,000

30,500

31,000

31,500

32,000

32,500

33,000

Natural gas usage at Plant 2 is used in a new furnace which was installed in 2012 associated with

the MultiAir product line. Any fluctuations are the result of gas usage from this furnace related to

production.

[kWh] Natural Gas Usage Plant II [kWh / Mio $]

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

2011 2012 2013

Gas Usage [kWh] kWh / Value Added [Mio $]

0

200

400

600

800

1,000

1,200

1,400

1,600

46 | Environmental Indicator

Actual natural gas usage has remained fairly consistent between 2011 through 2013 with a slight

increase from 2012 to 2013. Natural gas is used in the heat treat process. Changes in natural gas

usage are related to production.

[MWh] Natural Gas Usage Plant III [kWh / Mio $]

3,000

2,500

2,000

1,500

1,000

500

0

2011 2012 2013

Gas Usage [MWh] kWh / Value Added [Mio $]

010,00020,00030,00040,00050,00060,00070,000

90,00080,000

Natural gas usage at Plant 6 is limited to a dunnage washer and backup emergency generator.

Natural gas increases from 2011 through 2013 are the result of production increases.

[kWh] Natural Gas Usage Plant VI [kWh / Mio $]

250,000

200,000

150,000

100,000

50,000

0

2011 2012 2013

Gas Usage [kWh] kWh / Value Added [Mio $]

02,0004,0006,0008,000

12,00010,000

Environmental Indicator | 47

The Energy usage in Plant 1/5 has increased annually from 2011 through 2013 relatively slightly

in comparisons to large increases in production and new machines. Reasons for this include:

compressed air leak reduction program, change flame curtains on furnaces from propane to

natural gas, optimize HVAC units to use outside air cooling, replace lighting with T5 or LED

fixtures and machine shut down procedures.

InputElectricity

Actual energy usage in Plant 2 has increased annually from 2011 through 2013. Increases are

related to production of UniAir and ZF programs. Energy savings programs like compressed air

management, lighting upgrades to LED and installation/replacement of new efficient equipment

has resulted in reduced energy usage.

[MWh] Electricity Usage Plant I & V [kWh / Mio $]

58,000

57,000

56,000

55,000

54,000

53,000

52,000

51,000

50,000

2011 2012 2013

Electricity Usage [MWh] kWh / Value Added [Mio $]

780,000

760,000

700,000

710,000

720,000

730,000

740,000

750,000

[MWh] Electricity Usage Plant II [kWh / Mio $]

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

2011 2012 2013


0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

900,000

800,000


Electrical usage in Plant 3 has remained fairly consistent in the last 3 years, despite increased

production. Installation of more energy efficient equipment and upgrade of lighting systems has

assisted in the realization of increased energy efficiency.

Electrical usage at Plant 6 has increased slightly annually from 2011 through 2013 which is due to

increases in production.

[MWh] Electricity Usage Plant III [kWh / Mio $]

22,500

22,000

21,500

21,000

20,500

20,000

2011 2012 2013


610,000620,000630,000640,000650,000660,000670,000680,000

[MWh] Electricity Usage Plant VI [kWh / Mio $]

11,500

11,000

10,500

10,000

2011 2012 2013


540,000560,000580,000600,000620,000


Water usage at Plant 1/5 has decreased slightly from 2012 to 2013 despite significant increases in

production. This is the result of better control of washer overflow in heat treat washers, removal

of less water from oil water separators and installation of a closed loop system on air compressor

water cooling recycle system.

InputWater

Water usage at Plant 2 has increased from 2011 to 2013 as a result of increased production and

the installation of a cooling tower water system in 2011.

[gal*1.000] Water Usage Plant I & V [gal / Mio $]

98,000

97,000

96,000

95,000

94,000

93,000

92,000

91,000

90,000

2011 2012 2013

Water Usage [gal*1.000] gal / Value Added [Mio $]

1,360,0001,350,000

1,250,0001,260,0001,270,0001,280,0001,290,0001,300,0001,310,0001,320,000

1,340,0001,330,000

[gal*1.000] Water Usage Plant II [gal / Mio $]

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2011 2012 2013


0

50,000

100,000

150,000

200,000

250,000


Water usage at Plant 3 has increased in relation to production increases. Water is used in cooling

systems and washers. Fluctuations in water usage are related to these machines.

Actual water usage has remained fairly consistent with a slight increase from 2012 to 2013

as a result of increase production.

[gal*1.000] Water Usage Plant III [gal / Mio $]

12,000

10,000

8,000

6,000

4,000

2,000

0

2011 2012 2013


050,000100,000150,000200,000250,000300,000350,000

[gal*1.000] Water Usage Plant VI [gal / Mio $]

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

2011 2012 2013


300,000

250,000

200,000

150,000

100,000

0

350,000

400,000

450,000

500,000


CO2 emissions are generated from several onsite sources including combustion sources from the

heat treat process (methanol, propane and natural gas) and use of refrigerants (CFCs) in Heating

ventilation and air-conditioning systems when refilling equipment due to leakages. However,

most CO2 emissions are generated from electricity obtained from external (off-site) sources.

For all Schaeffler South Carolina plants, the majority of CO2 emissions are from natural gas and

methanol usage. Refrigerant leakage is minimal.

OutputCO2 Emissions

[lbs*1.000] CO2 Emissions Plant I & V [lbs / Mio $]

60,000

59,000

58,000

57,000

56,000

55,000

54,000

53,000

52,000

51,000

50,000

2011 2012 2013

CO2 Equivalents [lbs*1.000] CO2 Equivalents lbs / Value Added [Mio $]

840,000

700,000

720,000

740,000

760,000

780,000

800,000

820,000

[lbs*1.000] CO2 Emissions Plant II [lbs / Mio $]

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

2011 2012 2013


900,000

0

100,000

200,000

300,000

400,000

700,000

600,000

500,000

800,000


[lbs*1.000] CO2 Emissions Plant III [lbs / Mio $]

23,800

23,600

23,400

23,200

23,000

22,800

22,600

22,400

22,200

22,000

2011 2012 2013


745,000

695,000

705,000

700,000

710,000

715,000

720,000

735,000

730,000

725,000

740,000

[lbs*1.000] CO2 Emissions Plant VI [lbs / Mio $]

11,800

11,600

11,400

11,200

11,000

10,800

10,600

10,400

10,200

2011 2012 2013


630,000

550,000

560,000

570,000

580,000

590,000

620,000

610,000

600,000


There are a variety of wastes generated at each plant. Wastes classified as non-hazardous are

those that typically have a low toxicity value and do not have to be treated or managed in a

special way. These include paper, cardboard, general rubbish, food wastes, wood and others.

These wastes may go to the landfill or be recycled. Other wastes are those that are typically from

manufacturing process that have to either be pretreated or handled in a special manner prior to

disposal. These include those typically classified as special or hazardous wastes.

Plant 1 non-hazardous wastes have decreased from 2011 through 2013. An effort has been made

to segregate recyclables from the general trash and this has led to reduced usage.

Plant 2 non-hazardous wastes increased from 2011 to 2012 and decreased from 2012 to 2013.

The increase is due to production increase and the resulting increase is due to better waste

reduction efforts.

OutputWaste Generation

[lbs*1.000] Waste Generation Plant I & V [lbs / Mio $]

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

2011 2012 2013

Non-Hazardous Waste Generation [lbs*1.000] Waste lbs / Value Added [Mio $]

25,000

0

5,000

10,000

15,000

20,000

[lbs*1.000] Waste Generation Plant II [lbs / Mio $]

1,000

950

900

850

800

750

700

650

2011 2012 2013


20,00018,000

02,0004,0006,0008,000

14,00012,00010,000

16,000


[lbs*1.000] Waste Generation Plant III [lbs / Mio $]

2,500

2,000

1,500

1,000

500

0

2011 2012 2013


80,000

010,00020,00030,000

60,00050,00040,000

70,000

[lbs*1.000] Waste Generation Plant VI [lbs / Mio $]

1,600

1,400

1,200

1,000

800

600

400

200

0

2011 2012 2013


80,000

0

10,000

20,000

30,000

40,000

70,000

60,000

50,000

Plant 3 non-hazardous wastes increases from 2012 to 2013. This is due to the increase in paper

cardboard and oily wastewater generation.

Plant 6 non-hazardous waste has increased from 2011 through 2013 due to increased production

and recycling efforts.


Plant 1 /5 steel scrap has increased the last three years due to production. Volumes of recycling

increased for the last three years also resulting from process improvements in waste segregation

and scrap control efficiencies.

Plant 2 scrap metal fluctuated from 2011 to 2013 as a result of production.

OutputScrap Steel

[lbs*1.000] Scrap Steel Plant I & V [lbs / Mio $]

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2011 2012 2013

Scrap Steel [lbs*1.000] Scrap Steel lbs / Value Added [Mio $]

230,000

210,000

150,000

160,000

170,000

180,000

200,000

[lbs*1.000] Scrap Steel Plant II [lbs / Mio $]

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2011 2012 2013


120,000

0

20,000

40,000

60,000

80,000

100,000

220,000

190,000


[lbs*1.000] Scrap Steel Plant III [lbs / Mio $]

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2011 2012 2013


600,000

0

100,000

200,000

300,000

500,000

400,000

[lbs*1.000] Scrap Steel Plant VI [lbs / Mio $]

1,200

1,000

800

600

400

200

0

2011 2012 2013


60,000

0

10,000

20,000

30,000

40,000

50,000

Actual steel recycling increased yearly from 2011 through 2013. This is directly related to increased

production.

Steel recycling increased due to production.


58 | Goals 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 programs Completed? Actions

Eliminate Title V status for Plant 1 /5

>> Reduce VOC emissions at Palnt 1 /5 to less than 100 tons per year

>> Reduced usage of solvents and updated calculations of VOCs

Reduce energy usage >> Reduce energy used on existing systems to improve energy efficiency of specified rates at Plant 1 /5

>> Installed variable frequency drive on pond pump, install air driven pumps, install occupan-cy sensors for lighting, develop equipment shutdown procedu-res, implement compressed air leakage program

Reduce energy usage >> Reduce energy used on existing systems to improve energy efficiency of specified rates at Plant 2

>> Create machine and plant shut-down procedures, replace HPS lights with T-5 in manufacturing areas, install control system to optimize HVAC system, install energy efficient UniAir chiller system, install tankless water heater in QC office

Improve Recycling efforts >> Reduce waste going to landfill to support Go To Zero Landfill Target at Plant 2

>> Inventory potential recyclables identify 3rd party vendor to service locations segregate recyclables at source track met-rics related to waste streams

Reduce risk of hazardous air pollutant release

>> Upgrade ammonia tank from manual shutdown to automatic shutoff at Plant 3

>> Installed a new ammonia tank and modified controls so in the event of a release, automatic shutoff would occur

Reduce risk of toxic chemical release

>> Eliminate use of hydrogen peroxide from the chemdeburr waste treatment process at Plant 3

>> Chemical substituted for hydrogen peroxide

Improve wastewater discharge quality

>> Reduce zinc content in cooling lubricant used in grinding process at Plant 6

>> Chemical substitution

Improve Energy efficiency >> Reduce energy used on existing systems to improve energy efficiency of specified rates at Plant 6

>> Install variable speed drive on Mayfram, reduce compressor usage on weekend, remove air conditioner from machines, install motion sensor light switches, reduce compressed air level by 2 bar

Goal has been achieved. Part of goal has been achieved. Additional actions planned. Goal not achieved.

Goals and Programs

Goals and Programs | 59

New goals 2014

Setting specific and realistic goals is the only way to protect the environment in the long run. Environmental programs must include actions that can be implemented. We have selected the most important actions for the next three years. Responsibilities for imple-menting these actions have been clearly defined. The successful completion of environmental programs further relieves the environ-ment within the specified time.

Environmental goals Environmental programs Responsible Completion

Obtain 100 % approval of chemicals in use at the manufacturing facility

Chemical Approval – BAFF>> Inventory existing production and non-

production chemicals.>> Complete required paperwork>> Substitute or identify alternate chemical

for use if not approved.

Purchasing/EHS Coordinator

2015

Obtain third party certification of energy manage-ment program for 100 % of manufacturing sites in SC

ISO 50001 Implementation>> Identify Energy Coordinator and teams>> Identify and Develop energy targets>> Develop written energy program>> Create Energy Balance>> Ensure security of energy supply>> Inspect and audit energy program>> Implement energy programs

Energy Coordinator 2016

Implement 3rd party recycling program at 100 % of manufacturing sites

Go To Zero – Landfill Waste>> Identify all potential recyclables>> Identify 3rd party vendor to

service locations>> Segregate recyclables at source>> Track metrics related to waste streams

EHS Coordinator 2016

Train 100 % of manufacturing supervision in EHS topics

Supervisor EHS Awareness>> Develop supervisor training program>> Train supervisors in topics>> Certify supervision to EHS training

Education and Training /EHS

2015

While plant 4 is not ISO 14001 certified, this pro-ject has a significant impact on the environment and should be mentioned here.

Reduce chlorinated solvent impact to ground-water affecting off-site receptors

Soil and Groundwater Improvements>> Excavate source area soils at Plant 4>> Install additional extraction wells>> Upgrade and improve existing treatment

system piping>> Add amendments to determine if

effective in reducing chlorinated solvents

EHS Coordinator / 3rd Party

2015

Identify large users of water to determine focus for water reduction

Water monitoring and reduction>> Install water meters on key users of

process water in Plants 3 and 6 to accurately measure usage

Plant Engineering 2016

60 | Validation

Validation

Dr. Norbert Hiller, with EMAS environmental verifier registration number DE-V-0021,

accredited or licensed for the scope 29.32 (NACE Code), declares to have verified the site

Schaeffler Plant 1/5

Cheraw, SC

Schaeffler Plant 2

Chesterfield, SC

Schaeffler Plant 3

Fort Mill, SC

Schaeffler Plant 6

Fort Mill, SC

as indicated in updated environmental statement“ of the organization

Schaeffler Group Plants - South Carolina

as indicated in „environmental statement / updated 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 25. November 2009 on the

voluntary participation by organizations in a community eco-management and audit scheme

(EMAS).

By signing this declaration, I declare that

>> the verification and validation has been carried out in full compliance with the

requirements of Regulation (EC) No 1221 / 2009

>> the outcome of the verification and validation confirms that there is no evidence of

non-compliance with applicable legal requirements relating to the environment.

>> the data and information of the „environmental statement/updated environmental

statement“ of the site reflect a reliable, credible and correct image of all the sites activities,

within the scope mentioned in the environmental statement.

Validation and Responsibility

Validation | 61

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 standalone piece of public communication.

Done at Plant 1, on 03/12/2014




Dr.-Ing. Norbert Hiller

Responsible for environmental protection at

Plant 1 Brooks Allen

Plant 2 Charles Johnson

Plant 3 Chris Patterson

Plant 6 Ken Brown (acting)

Responsible for environmental protection and safety statement at

South Carolina location:

Karen M. Bozman

EHS Director

The next consolidated (entire) Environmental Statement will be submitted for validation in

December /2017 at the latest.

In the years between, an annual update of the Environmental Statement will be compiled for

validation by the environmental verifier.

Questions about environmental Protection at the location:

Schaeffler Group USA, Inc.

Karen M. Bozman

South Carolina Plants

308 Springhill Farm Road

Fort Mill, SC 29715 USA

Internet www.schaeffler.com

E-Mail [email protected]

USA

Phone (803) 548-8500

Fax (803) 547-7992

From other countries:

Phone +01 (803) 548-8500

Fax +01 (803) 547-7992

Questions about environmental protection

and safety at Schaeffler:

Norbert Hörauf

Industriestraße 1-3

91074 Herzogenaurach

Internet www.schaeffler.com

E-Mail [email protected]

Germany:

Phone 09132 822058

Fax 09132 82452058

From other countries:

Phone +49 9132 822058

Fax +49 9132 82452058

The structure and contents of this report correspond to the requirements stated in Annex IV of

Regulation (EC) No. 1221 / 2009 of the European Parliament and the 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.

© Schaeffler Technologies AG & Co. KG · 2014

This publication or parts thereof may not be reproduced without our permission. Des

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environmental statement - schaeffler group...industry, schaeffler is a recognized development...

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