Bosch

RATING

SECTOR

Engineering, Manufacturing

WEBSITE

CONTACT

Robert-Bosch-Platz 1
70839 Gerlingen-Schillerhöhe
GERMANY
Tel: +49 711 400 40990
Email: kontakt@bosch.de

 

STOCK EXCHANGE

LISTING

  • Diversity & Inclusion Index 2019 compiled by Universum

EMPLOYEES

400,000

CHIEF SUSTAINABILITY OFFICER

Brad Mckenna

AWARDS

  • 3rd in best employers in Glassdoors rankings
  • 2nd inYoung Professionals Barometer 2019 published by Trendence

CONTENT SOURCE

FURTHER READING

Report created by Ajith Thangavelautham

Bosch

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

The Bosch Group is a leading global supplier of technology and services. It employs roughly 402,000 associates worldwide (as of December 31, 2017). The company generated sales of 78.1 billion euros in 2017. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. 

As a leading IoT company, Bosch offers innovative solutions for smart homes, smart cities, connected mobility, and connected manufacturing. It uses its expertise in sensor technology, software, and services, as well as its own IoT cloud, to offer its customers connected, cross-domain solutions from a single source. The Bosch Group’s strategic objective is to deliver innovations for a connected life.

Company Sustainability Activity

Bosch plays a pioneering role in climate action — out of conviction and out of a sense of responsibility for society. In 2020, they want to make emissions in their direct sphere of influence (scope 1 and 2) climate-neutral worldwide. By 2030, Bosch wants to achieve a further improvement in terms of climate protection on the basis of the quality of the measures applied.

In expanding their climate action further, they are also focussing on their indirect emissions. They have set themselves climate action targets across the entire value chain and have had these confirmed externally by the Science Based Targets initiative (SBTi).

Highlights

  • Bosch invested 6.1billion euros in research and development in 2019
  • Bosch had 1,500 projects to reduce energy consumption by 210 gWh
  • 69 GWh own power generation from renewables
  • % Cooling lubricants and washing water reduced by almost 50%

Targets

Climate

  • Bosch is committed to the Paris Agreement’s target. From 2020, the company will be climate neutral in terms of the volume of energy it generates and purchases (scope 1 and 2).
  • CO₂ emissions in the scope 3 categories of “purchased goods,” “logistics,” and “use of products sold” are to be reduced by 15% by 2030.

Energy

  • Bosch wants to save 1,700 gigawatt-hours by 2030 using energy-efficiency measures. To achieve this, they will invest a total of more than one billion euros.
  • They plan to increase the volume of power they generate from renewable sources from 55 to 400 gigawatt-hours and considerably extend the green electricity they buy in from new plants by 2030.
  • In 2020, Bosch is aiming to have over 400 of their locations worldwide carbon neutral. To achieve this, they are using four levers: energy efficiency, new clean power, purchasing of green electricity, and carbon offsets.

Health

  • By 2020, Bosch aims that their accident rate will be no more than 1.7 accidents per one million hours worked.
  • To efficiently manage prohibitions and restrictions on materials, Bosch will continue updating its IT-based system Material Data Management for Compliance and Sustainability.

Water

  • Bosch wants to systematically reduce 25% of its absolute water withdrawal at 61 locations in regions with water scarcity by 2025.
  • Bosch has set itself the goal of continuously improving the quality of water discharges.

Globalization

  • They aim to clearly identify the ecological and social risks in the supply network and to refine current measures on that basis. In 2020, their focus will be placed on human rights in particular.

Urbanization

  • In order to strengthen the circular economy, Bosch plans to launch a strategic project in 2020 that combines the operating units’ efforts and provides an overarching framework.
  • With regard to resources, Bosch focuses on waste avoidance (Zero Waste to Landfill) and reducing hazardous waste.

Progress

Climate

  • Bosch complies with a large number of laws and requirements relating to environmental protection, among them the Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) adopted by the European Union and the EU Directive on the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS), as well as national legislation such as the Renewable Energies Act (EEG) in Germany.
  • In 2019, the Bosch Group companies consumed a total of approximately 7,762 GWh of energy (previous year: 7,844 GWh). This corresponds to emissions of 1.94 million metric tons of CO₂ (previous year: 3.26 million metric tons) A decrease of 1.86 metric tons of CO₂.
  • In 2019, Bosch launched a project to analyze which air pollutants are produced and at what levels in the relevant business processes in manufacturing, such as surface treatment, foundry processes, and building heating. The results show that there are no significant effects on people and the environment from air pollutant emissions.

Energy

  •  In 2019, Bosch began to significantly expand their purchase volume of electricity from renewable sources with corresponding guarantees of origin. In Germany they exclusively purchased 1,831 GWh green electricity.

Water

  • By the end of 2019, Bosch achieved a reduction of 11.5% and launched 50 additional projects that will enable them to save up to 200,000 m³of water at their sites in the future.
  • Since 2015, the Bosch Group’s water withdrawal has increased from 19.34 million m3 to currently 19.77 million m3. In relation to sales revenue, however, this constitutes a relative decrease of 6.3%.
  •  In 2019, Bosch’s wastewater volume decreased to 16.2 million m³ (previous year: 16.3 million m³)

Waste

  • Since 2013, Bosch has been able to increase the proportion of materials made from or containing recycled materials by around 50%.
  • At Bosch, hazardous waste mainly consists of cooling lubricants, washing water, oils, and fuels. In 2019, their volume decreased by almost 10% to 80,562 metric tons.
  • In order to further reduce the amount of waste going to landfills, Bosch wants to increase the recycling rate. They implemented the Zero Waste to Landfill campaign in various Asian countries and in the United States in the reporting year. Their Koramangala Campus in India operates a biogas plant that also uses food leftovers from the canteen, thus also saving energy. 
  • In the 2019 reporting year, the relative volume of waste decreased by 1%. The absolute volume of waste decreased by 1.4% to 701,190 metric tons (previous year: 711,403 metric tons). Of that amount, it was possible to recycle 80%.

Health and Safety

  • As of 2019, Bosch has set down in their purchasing terms and conditions significant EHS (Environment, Health and Safety) requirements for suppliers, such as sufficiently qualified employees and safe working equipment.
  • Relative to the baseline year 2007, In 2019 the number of accidents per 1 million hours worked in the reporting year is down 74%, at 1.9.

Globalization

  • Bosch Group donated a total of 22.7 million euros worldwide (previous year: 24.5 million euros) for charitable purposes, including donations in kind

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 4

  • Bosch wants to promote social progress and play an active role, even beyond the boundaries of their core business. In this regard, they are especially committed to education and science – which they consider an investment in the future.
  • As part of the initiative Wissensfabrik – Unternehmen für Deutschland e. V. (Knowledge Factory – Companies for Germany), several hundred Bosch associates are involved in some 300 educational cooperation arrangements with preschools, schools, and start-ups in their free time

SDG 5

  • Bosch’s Code of Business Conduct also reflects that Bosch respects and protects the personal dignity of each individual, tolerates neither discrimination nor harassment of associates, and promotes diversity. It is very important to the company that – irrespective of gender, age, background, or any other aspects – all associates around the globe feel valued and can devote their individual strengths, experience, and potential to the company.
  • They want to further increase the proportion of women in their  Diversity website Diversity initiative. The diversity initiative, launched as a project in 2011, brings the topic to life by highlighting positive examples. Its approach and message that “diversity is our advantage” is communicated worldwide through a variety of channels. 
  • Bosch is paying greater attention in its diversity management to unconscious bias, which is one of the causes of stereotyping. Since 2015, they have held close to 250 workshops with over 4,000 multipliers at some 40 company sites in Germany.

SDG 6

  • The conscientious use of water has been a declared goal of Bosch for many years – and one the company is emphasizing by anchoring the issue of water in their sustainability target vision. Back in 2018, they analyzed their sites using the WWF’s Water Risk Filter. The result shows that 61 sites, accounting for 14.4% of their total annual water withdrawal in 2019, are located in areas with the severest or severe water scarcity. Bosch has decided to focus on combating water scarcity. By systematically saving water, they can quickly achieve significant improvements in regions where water is a particularly valuable resource. 

SDG 8

  • Bosch’s products can be found in many areas of everyday life at home or in the car, at work or at leisure. Their “Invented for life” ethos stands for quality, reliability, and safety and for the fact that their products fascinate people and improve their quality of life. To ensure that it stays that way in the future, Bosch conducts research and development work on innovative solutions and technologies that make life easier and safer, conserve resources, and create economic added value for Bosch’s customers. 
  • They create services and products that make a contribution to a circular economy. Currently, Bosch subsidiary BSH Hausgeräte GmbH is testing the Blue Movement leasing service in the Netherlands, which provides an easy way to lease resource-efficient fridges, washing machines, and dryers. 

SDG 9

  • Business models, products, and materials requirements are changing across markets worldwide and new supply chains are being established. At Bosch, they address these challenges together with all parties involved – through close and concerted collaboration beyond company boundaries and national borders. They believe that trust-based partnerships with their suppliers within the framework permitted by law are a basic prerequisite for supply chain excellence. By anchoring the aspect of sustainable supply chains in the issue of globalization within their target vision of sustainability, they accord it strategic importance. As a company that acts responsibly, they look beyond the use of materials and resources at their locations. They support the German federal government’s National Action Plan (NAP) for Human Rights.

SDG 11

  • As a company active worldwide, Bosch also bears responsibility for local communities in the places where they operate. They want to promote social progress and make a continuous contribution to improving people’s quality of life through their social commitment. One of their priorities is the promotion of education and science – which they consider an investment in the future.

SDG 12

  • On the basis of life cycle analyses, Bosch endeavors to make their products eco-friendly. At the same time, they seek to reduce their own consumption of energy and resources and have, for that purpose, established environmental management systems at their locations. To continuously improve occupational health and safety and the working conditions of their associates at their production facilities as well as in their administrative functions worldwide, they maintain extensive occupational health and safety management. And, as they are well aware of how important different perspectives, attitudes, and personal backgrounds are for a successful corporate culture, they promote diversity and equal opportunities.

SDG 13

  • Bosch wants to shape climate action with an aim that is firmly anchored in their sustainability target vision through the issues of climate and energy. Since the 1970s, they have viewed energy efficiency and emissions reduction primarily as opportunities for innovation and have been driving these issues forward at the board level. The central body in this regard is the CO₂ steering committee, which meets every six months and makes decisions with respect to the implementation of the CO₂ strategy. 

Bosch expresses its enthusiasm for achieving sustainability in its detailed Sustainability report. However, the company expresses limited goals and has made minimal progress to reach them.

While they are on a track to become more sustainable, there is no clear indication regarding their sustainability progress for the future.

Despite having a good number of certificates they have few listings and awards. They also have aligned their operations with UN’s SDGs and have stated in their reports which specific goals they are targeting in their business. They are transparent with their reports however they lack in explaining their progress in certain goals such as becoming carbon neutral. Overall they get a rating of C.

Analyst Outlook: Positive

Due to their efforts in becoming carbon neutral and commitments to UN SDGs, they are on a strong path to becoming sustainable. 

 

Key Points

  • In August 2020 Bosch has purchased solar power from German facilities to give a boost to their journey to Carbon neutrality. The company has made agreements with RWE, Statkraft, and Vattenfall and Bosch has stated that these purchases will cover a total annual volume of more than 100,000 megawatt hours.
  • According to CEO Volkmar Denner Bosch’s German sites have been climate-neutral and by the end of this year, they will reach carbon neutrality for all 400 locations worldwide.
Share this Post