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Sustainability strategy

Clear vision sets the direction

Bosch location in Renningen, Germany.

Bosch is committed to sustainability and is constantly evolving in this respect. The cor­responding strategic foundations are anchored in our “New Dimensions — Sustainability 2025” target vision.

Sustainability strategy

By acting in an economically, environmentally, and socially responsible manner, we want to improve people’s quality of life and safeguard the livelihoods of present and future generations.

Bosch has set itself clear sustainability targets with its “New Dimensions — Sustainability 2025” target vision. The vision describes six fundamental dimensions, each of which is specified and elaborated further by reference to two key aspects with clearly defined, medium-term targets. Derived from the megatrends affecting our company and the findings of our materiality analysis, the dimensions set the stage for our activities in the years ahead.

Graphic of the Bosch sustainability target vision: The six dimensions of the target vision are arranged in a hexagon. The climate dimension includes the topics "CO2 Scope 1 & 2" and "CO2 Scope 3". The energy dimension includes the topics of “energy efficiency” and “renewable energies”. The water dimension includes the topics “water scarcity” and “water quality”. The urbanization dimension includes the topics of “life cycle analyzes” and “resources and waste”. The globalization dimension includes the issues of “responsibility” and “supply chain”. The health dimension includes the topics of "occupational safety" and "substances of concern". In the middle of the hexagon it says “New Dimensions Sustainability 2025”.
“We want to take action wherever it will be most beneficial for the environment and society.”
Torsten Kallweit, Head of EHS and Sustainability at Bosch

Our target vision in detail

Climate

Climate

Climate

Bosch is a climate action pioneer, and its business operations have been climate neutral (scopes 1 and 2) since 2020. Along the entire value chain, Bosch contributes its knowledge and technologies, multiplying the influence it has on the reduction of greenhouse gas emissions (scope 3).

1 | CO₂ scopes 1 and 2

Operating climate-neutral from 2020 onward and continuously improving the mix of measures until 2030

Since 2020, Bosch and its over 400 company locations worldwide have been climate neutral (scopes 1 and 2). The task now is to continuously refine the measures through 2030 to make the greatest possible contribution to climate action and the energy transition.

2 | CO₂ scope 3

Lowering absolute scope 3 CO₂ emissions by 15 percent by 2030

In 2020, we further increased the granularity of our calculation for the key scope 3 categories and identified key drivers.

  • “Goods and services purchased” category: In 2020, we identified the largest CO₂-emitting supplier groups. In 2021, we want to record the emissions of relevant suppliers along with progress reducing those emissions so we can measure their contributions.
  • “Logistics” category: In the field of logistics, we will focus in particular on avoiding airfreight. In 2020, a pilot project to switch from air to sea freight resulted in potential for lowering CO₂ emissions by roughly ten percent in the first year. The extent to which the measures can be rolled out to additional logistics segments is currently being examined.
  • “Use phase of products” category: In 2020, we identified additional potential for further reducing CO₂ emissions in the use phase. Pertinent levers are increasing energy efficiency, shaping the product portfolio, and using the transformation of the energy sector.

With our activities, we particularly support the following United Nations Sustainable Development Goals (SDGs): sustainable consumption and production (SDG 12), and climate action (SDG 13)

Climate
Energy

Energy

Energy

Bosch encourages the expansion of renewables and strives continuously for energy efficiency — from development to manufacturing to the finished product.

1 | Energy efficiency

Saving 1.7 TWh through increased energy efficiency by 2030

Since 2019, we have initiated more than 2,000 energy-efficiency projects worldwide, with some 1,000 new projects added in 2020 alone. With them, we have captured a savings potential of 0.38 TWh.

2 | Renewable energy

Increasing own renewable generation at our sites to 400 GWh and significantly expanding purchase of green electricity from new plants by 2030

In 2020, we generated 69 GWh of power from renewable sources in-house at our company sites. Accordingly, we already reached 17 percent of our target value. In parallel, in 2020 we entered into long-term supply agreements with three energy suppliers in Germany, thus enabling the construction of new renewable energy plants. As a result, more than 100,000 megawatt-hours of power will flow annually from the public grid to Bosch locations in Germany. We are planning to conclude similar supply agreements in other regions in 2021.

With our activities, we particularly support the following United Nations Sustainable Development Goal (SDG): affordable and clean energy (SDG 7)

Energy
Water

Water

Water

For Bosch, water is a resource to be treated sparingly. Regions in which water is scarce are a special concern.

1 | Water scarcity

Reducing by 25 percent absolute water withdrawal at company locations in regions with water scarcity by 2025

Since 2019, we have launched some 50 projects and reduced water withdrawal by 23.1 percent at company locations in regions with water scarcity compared to 2017. The company locations were identified using the WWF’s Water Risk Filter. We plan to update the database in 2021.

2 | Water quality

Increasing the quality of wastewater flows

In 2020, Bosch’s wastewater volume decreased to 14.5 million m³. To improve the quality of wastewater flows, we have centrally recorded what quantities are involved where as well as how they are treated and discharged. We have defined wastewater quality standards that are binding worldwide and monitor their compliance.

With our activities, we particularly support the following United Nations Sustainable Development Goal (SDG): clean water and sanitation (SDG 6)

Water
Urbanization

Urbanization

Urbanization

Bosch wants to minimize its ecological footprint and strives to create social benefit. In this endeavor, Bosch puts its faith in the principles of the circular economy and the opportunities presented by digitalization.

1 | Resource efficiency

Increasing resource efficiency by strengthening the circular economy

In 2020, we developed a circular economy strategy that takes into account environmental and social impacts along the end-to-end value chain. In 2021, we are now systematically analyzing the main materials used in Bosch products and developing an action plan to strengthen the circular economy.

2 | Digitalization

Pursuing responsible digitalization

Bosch uses the opportunities offered by data, AI, and the IoT to develop technology-driven solutions that serve people and nature. With our code of ethics for AI, we have set concrete guidelines for the responsible development and application of AI.

With our activities, we particularly support the following United Nations Sustainable Development Goals (SDGs): sustainable cities and communities (SDG 11), sustainable consumption and production (SDG 12)

Urbanization
Globalization

Globalization

Globalization

Bosch takes on responsibility and is sensitive to human rights being respected — along the entire value chain.

1 | Responsibility

Making sustainability more transparent and measurable

Bosch is a founding member of the Value Balancing Alliance e. V. (VBA). The initiative is developing a model for the holistic assessment of entrepreneurial activities. In 2020, Bosch implemented three pilot projects that put a monetary value on the economic, environmental, and social impacts of business activities in its internal value creation and the wider supply chain.

2 | Human rights

Increasing transparency and respect for human rights along the value chain Bosch is currently working on a systematic analysis of social and environmental risks along the value chain. In 2020, the focus was on working conditions in raw materials extraction. Taking the risk analysis as a basis, a risk matrix is to be created in 2021 that will allow concrete measures to be directly derived from it.

With our activities, we particularly support the following United Nations Sustainable Development Goals (SDGs): decent work and economic growth (SDG 8), industry, innovation, and infrastructure (SDG 9)

Globalization
Health

Health

Health

Bosch contributes to human health with innovative products and services and by ensuring that people and the environment do not come to harm in its production processes.

1 | Occupational health and safety

Reducing the accident rate to 1.45 accidents per million hours worked or less by 2025

We had aimed to lower the accident rate at Bosch to 1.7 accidents per million hours worked by 2020. With an accident rate of 1.5 in 2020, we have achieved this goal. Building on what we have already achieved, we are now setting ourselves a new objective: by 2025, we endeavor to lower the number of work accidents at Bosch to 1.45 accidents per million hours worked.

2 | Substances of concern

Continuously upgrading materials data management

Bosch handles substances of concern responsibly. To efficiently manage prohibitions and restrictions on materials, we are continuously upgrading our IT-based Material Data Management for Compliance and Sustainability (MaCS) system.

With our activities, we particularly support the following United Nations Sustainable Development Goal (SDG): good health and well-being (SDG 3)

Health

Organization

At Bosch, sustainability is defined as a central task that the various business sectors tackle together on the basis of ambitious goals and systematic sustainability management. At Bosch, the highest technical committee for sustainability is the corporate social responsibility steering committee under the aegis of the CEO. The steering committee concerns itself with Bosch’s strategic orientation in relation to sustainability, whereas goal agreements and management review for all sustainability-related issues are the responsibility of the CEO and the board of management member responsible for sustainability.

The EHS and Sustainability corporate department is responsible for sustainability management, which mainly entails setting and tracking goals, designing and supporting programs, preparing concepts for further development, and reporting on sustainability.

From a content point of view, the Communications and Governmental Affairs corporate department focuses on sustainability communications and stakeholder engagement.

Responsibility for worldwide implementation of the sustainability strategy and monitoring the achievement of goals rests with the competent specialists at headquarters and in the divisions. The structure we apply in sustainability management is one that has already served us well in other areas: strategy and framework conditions are defined centrally, and the divisions focus on compliance with the standards and processes, right through to certification.

How sustainability is organized at Bosch

Focusing on what truly matters

We use a materiality analysis to determine which aspects of sustainability to focus our activities on.

We updated our materiality matrix at the end of 2019: more than 1,000 international stakeholders — including business partners, representatives of the scientific community, policymakers, the capital market, and relevant nongovernmental organizations, as well as associates and prospective job applicants — gave their assessment of the relevance of sustainability issues. The materiality matrix highlights the aspects that Bosch and its stakeholders deem to be of material relevance within the defined fields of activity.

Materiality matrix: Relevance of different sustainability topics assessed by stakeholders and by Bosch

The Sustainable Development Goals of the United Nations

Especially in times of fundamental change, it is important to take responsibility for people, the environment, and society. That is why we have also committed to the United Nations’ Sustainable Development Goals (SDGs), which extend into 2030 and promotes sustainable development worldwide. We support these goals with our products and services by offering solutions to social challenges and finding answers to environmental and social questions. We regularly benchmark our sustainability activities against the 17 SDGs. The following are of particular relevance for our company:

  • zero hunger (SDG 2)
  • good health and well-being (SDG 3)
  • quality education (SDG 4)
  • gender equality (SDG 5)
  • clean water and sanitation (SDG 6)
  • affordable and clean energy (SDG 7)
  • decent work and economic growth (SDG 8)
  • industry, innovation, and infrastructure (SDG 9)
  • sustainable cities and communities (SDG 11)
  • sustainable consumption and production (SDG 12)
  • climate action (SDG 13)

Bosch’s diverse activities also support aspects of other UN goals.

Bosch target vision SDGs 2020

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