Bosch Signet carbon neutrality from 2020.
Environment

Carbon neutrality by 2020

We are taking responsibility at Bosch, and making our over 400 locations carbon neutral in 2020. But that's not all: we want to shape climate action and also take a close look at the carbon footprint of our products, purchased goods, and logistics processes.

Bosch plays a pioneering role in climate action

Bosch climate goals in scopes 1-3: climate neutrality as of 2020 in scopes 1 and 2; -15% by 2030 in scope 3

Our climate goal refers to the energy we generate ourselves and the volume we purchase for manufacturing and administration (scopes 1 and 2 of the Greenhouse Gas Protocol, GHG). This is where we can directly influence the reduction of greenhouse gases and make a big impact in a short time. We also set ourselves a target for the upstream and downstream stages of the value chain (scope 3) in 2019. In addition to this specific goal, we want to make an active contribution to ensuring that the stages of the value chain that we do not influence alone will also be climate neutral by 2050.

Carbon neutral research, production, and administration

Bosch carbon neutral Signet

In 2020, we want to make emissions in our direct sphere of influence (scope 1 and 2) carbon neutral worldwide. By 2030, we then want to achieve a further improvement in terms of climate protection on the basis of the quality of the measures applied.

Dr. Volkmar Denner

When it comes to the climate, words are not enough. Companies need to aim for carbon neutrality, here and now.

Dr. Volkmar Denner, chairman of the board of management

Four levers for climate neutrality

Four levers to achieve climate neutrality: energy efficiency, new clean power, green electricity and carbon offsets

We have defined four levers for the implementation of our climate goal, which we are now consistently using: firstly, to increase energy efficiency; secondly, to expand the supply of renewable energy; thirdly, to purchase more green electricity; and fourthly, to offset unavoidable CO₂ emissions with carbon credits. It is important for us to be climate neutral as early as 2020 and to continuously optimize the use and mix of our four levers by 2030 in order to make a significant contribution to climate action.

Energy mangement at the Bosch plant Homburg, Germany

Energy efficiency

Improvement of energy efficiency

Energy efficiency

Improvement of energy efficiency

By 2030, we aim to save 1.7 terawatt-hours (TWh) of energy by making energy-efficiency improvements at our locations. In order to finance corresponding measures, the board of management has approved an annual budget of 100 million euros through 2030. In 2018, we already launched around 500 projects worldwide, followed by over 1,000 more in 2019. Together, they are saving around 0.21 TWh.

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New clean power

Investment in new clean power

New clean power

Investment in new clean power

We intend to increase our own power generation from renewable sources of energy such as photovoltaics and wind from 0.05 TWh in 2018 as baseline year to 0.4 TWh. This corresponds to the output of a photovoltaic system the size of around 300 soccer fields. With 69 gigawatt-hours (GWh), we were already able to install 17 percent of the target capacity by the end of 2019. At the same time, we encourage business partners with long-term sourcing contracts to install new renewable energy capacities. In Germany and Mexico, we are already making a substantial contribution to the energy transition in this way.

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Green electricity

Purchasing green electricity

Green electricity

Purchasing green electricity

In order to implement carbon neutrality quickly, Bosch will initially focus on purchasing green electricity from existing plants. In 2019, we therefore began to significantly expand our purchase volume of electricity from renewable sources with corresponding guarantees of origin. In Germany, for example, we already exclusively purchased green electricity in 2019 — 1,831 GWh in total.

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Carbon offsets

Carbon offsetting as a bridging solution

Carbon offsets

Carbon offsetting as a bridging solution

We intend to reduce the use of carbon credits to a minimum in the coming years. However, they will be necessary on a transitional basis to offset unavoidable CO₂ emissions from combustion processes (heating, process heat) and to offset electricity sourced in countries with only limited availability of green electricity. When selecting carbon-offsetting projects, we are guided by internationally recognized independent certifications such as the Gold Standard. It is important to us that the projects promote both social and ecological development.

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Torsten Kallweit, Head of EHS and Sustainability at Bosch

Energy efficiency and own generation capacity from renewable sources are major levers to achieve carbon neutrality.

Torsten Kallweit, Head of EHS and Sustainability

Climate action across the entire value chain

Logo of the Science Based Targets intiative

In expanding our climate action further, we are also focussing on our indirect emissions — that is, purchased goods and services, business travel, and also the transportation and use of our products. Here again, we have an ambitious target: we will reduce our indirect emissions by 15 percent by 2030.

We have thus set ourselves climate action targets across the entire value chain – and have had these confirmed externally by the Science Based Targets initiative (SBTi). The SBTi provides an independent assessment of companies’ targets for reducing emissions using science-based best practices as reference points.

Q&A on climate action at Bosch

What makes the Bosch carbon neutral goal so special?

Bosch will be the first major industrial enterprise to achieve complete carbon neutrality by the end of 2020. Both the nature and the scope of our program for carbon neutrality are unprecedented. We’re prioritizing efforts to improve the energy efficiency of our plants and buildings, which will enable us to reduce energy consumption and conserve resources over the long term. Bosch is also stepping up its investments in new clean power, i.e., in renewable in-house generation and the conclusion of exclusive long-term purchase agreements with investors in new renewable energy generation plants that are to be built. This is our contribution to a sustainable energy transition. By 2030, we will achieve a significant increase in the share of energy from renewable energy plants.

When Bosch talks about global carbon neutrality, what exactly is being factored into the equation and what is being left out?

Carbon neutrality covers our manufacturing, administrative and research facilities. It factors in all carbon emissions produced by burning fossil fuels such as gasoline, diesel, heating oil, natural gas, and coal, as well as all the industrial gases that the company uses for processes such as welding (Scope 1). Beyond that, it also includes indirect carbon emissions attributable to energy consumed in the form of electricity, district heating, and steam (Scope 2).

How close is Bosch to achieving the goal of carbon neutrality?

We are making good progress toward our goal of making Bosch and all its locations climate neutral worldwide by the end of 2020. We are the first global industrial enterprise with such an ambitious goal. Our German sites have been carbon neutral since the end of 2019.

How does Bosch plan to achieve the Scope 3 goal?

We have identified three activities that generate by far the most Scope 3 emissions: purchased goods, logistics, and the use of products sold. The divisions have already drawn up their own roadmaps on how they can help achieve the targets for these categories. During product use, which is responsible for roughly 90 percent of Scope 3 emissions, our focus is on the business sector Mobility Solutions and the Thermotechnology, Drive and Control Technology, and BSH Hausgeräte GmbH divisions, which account for most of them. Here again, our approach is always to get involved wherever we can make the greatest contribution to protecting human life and the environment.

Why is Bosch setting only 15 percent of Scope 3 as a goal?

We want to make our own, credible contribution to reducing Scope 3 emissions and, in setting our goal, place emphasis on measures that we are able to control ourselves. Given the scientific facts, we assume that only an absolute target can make an effective contribution to climate action. Depending on the corresponding growth rates, a relative target may cause an increase in absolute global emissions, even if a company has achieved its relative target. As we want to remain successful as a business enterprise in the future, an absolute reduction of 15 percent by 2030 may equate to a relative target of 40 percent if growth forecasts are realistic. Moreover, in numerous markets we depend on demand for climate-friendly products, which we can influence only indirectly. There is a clear difference compared to achieving carbon neutrality at our own locations.

Explore more

  1. MWh energy savings by 2030

  2. GWh will be produced by Bosch from own renewable resources

  3. million euros additional annual budget for the period 2018 through 2030

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