Environment and Social by Paola Clemente

G E P R F T E S U M W E L T M A N A G E M E N T D-158-00016

Environment and Social 2010 Brazil

Schaeffler Group

Providing a stable environment in our

The Schaeffler Group has integrated

world will not get any easier because we

environmental protection in all of its

to environmental protection based on

live on a planet with limited resources.

divisions. We save resources, prevent

the conviction that environmental

Sustainable development and

waste and close cycles because it is our

management represents an important

environmental protection are thus key

goal to protect the environment all the

contribution to our companyâ&#x20AC;&#x2122;s continued

factors for securing our future.

way from development to disposal.

existence and success. Our awareness

At the Schaeffler Group, protecting the

This may sound simple but it requires a

responsible actions allow us to improve

environment is one of our company goals.

lot of work. Itâ&#x20AC;&#x2122;s worth it though, and the

a little more every day.

We are proud to say that environmental

certification of all of our plants by an

awareness has been our top priority in

independent environmental verifier clearly

Company management is committed

has grown, and our forward looking,

our development, purchasing, manu-

shows that our efforts have been

facturing and waste disposal activities

successful.

for many years. Maria-Elisabeth Schaeffler

Schaeffler Group Environmental Protection and Occupational Safety Policy

Occupational safety and environmental

A Safe and Employee-Friendly

We produce environmentally friendly

protection are part of our management

Workplace

products by taking into consideration a

principles. We create and maintain a safe

We believe that all work-related injuries

product’s entire lifecycle.

working environment that promotes the

and illnesses can be prevented.

health and performance of our employees

Highly motivated employees and

Responsible Employees

and embrace environmental responsibility

executives support our efforts to provide

We regularly provide information and

to secure our company’s continued

a zero-accident workplace. We give equal

training to our employees and business

existence and success.

consideration to the protection of our

partners to ensure they have the skills

employees and contractors.

and expertise necessary to carry out

The following principles apply to all

That is why we base the design of new

their work safely and to minimize

Group locations worldwide. We are firmly

workstations and work processes on the

environmental impacts in all company

committed to our employees, to society

latest scientific findings and place great

departments.

and to future generations.

importance on the ergonomic design of workstations.

Preventive Measures We take comprehensive measures to

Ef ficient Occupational Safety and

Reliable Actions

protect our employees from health

Environmental Management

We are committed to complying with all

hazards and prevent damage to the

We embrace and continuously

legislation and specifications regarding

environment. Comprehensive and

improve our occupational safety and

occupational safety and environmental

effective emergency measures are in

environmental protection system.

protection. We act responsibly in

place at all locations to ensure that

We develop forward-looking strategies

accordance with our own regulations,

our employees and visitors receive

and work with our business partners

which often go above and beyond

adequate care in the event of injury.

to implement these strategies.

applicable laws. We plan, purchase,

We perform regular checks to determine

operate and maintain our machines and

Open Communication

how well our specifications have been

facilities using a strategy that helps

We conduct an intensive and trusted

implemented and how successful our

prevent potential hazards and minimize

dialog with interested parties.

management system is in all divisions.

risks and business disruptions.

We provide information about our

Our actions and decisions are based on

occupational safety and environmental

state-of-the-art technology.

protection measures as well as the impact each of our locations has on

Minimal Environmental Impact and

the environment.

Environmentally Friendly Products We do all we can 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

Dr. Jürgen M. Geißinger,

and energy sparingly.

President and CEO

The Schaef fler Group

The Schaeffler Group with its INA, LuK

The Schaeffler Group’s Divisions

The Industrial division offers more than

Automotive

world’s second largest rolling bearing

and FAG brands is one of the world’s leading rolling bearing manufacturers

225,000 catalog items, making it the

and a renowned supplier to the auto-

The automotive industry is one of the

manufacturer.

motive industry. In 2008, roughly 66,000

Schaeffler Group’s key customers,

Products include standardized

employees, 28,000 of them in Germany,

generating around 60% of total sales.

catalog products as well as customized

generated sales of nearly 8.9 billion

For almost all manufacturers and major

solutions, replacement parts and

euros. This makes the Schaeffler Group

suppliers, the Schaeffler Group is a

services and ranges from miniature

one of Germany’s largest family-owned

recognized development partner with

bearings, such as those used in dental

industrial companies.

systems expertise for the entire power

drills, to large bearings with outside

The group also includes Schaeffler

train, i.e. a vehicle’s engine, transmission

diameters of several meters, e.g. those

Technologies GmbH & Co. KG and

and chassis, as well as accessories in

used in wind turbines.

LuK GmbH & Co. oHG, based in Bühl.

passenger cars and trucks. Precision products made by INA, LuK and FAG

The renowned Aviation and Aerospace

The Schaeffler Group has 180 locations

help reduce energy consumption and

division produces high-precision

in around 50 countries, with a major

emissions and simultaneously increase

bearings for engines used in airplanes,

focus in Europe and North America.

driving comfort and fun.

helicopters and aerospace applications.

Growth markets in Eastern Europe

Customers include all renowned auto-

The Schaeffler Group with its FAG and

and particularly in Asia are becoming

motive manufacturers and important

Barden brands is regarded as one of

increasingly important. All Schaeffler

suppliers worldwide. The Automotive

the world’s leading manufacturers in

Group plants worldwide comply with

Aftermarket division supplies replacement this industry. All of its products are

very high quality and environmental

parts and provides services to distribu-

extremely powerful and offer maximum

standards and have been certified

tors and independent repair shops.

possible reliability.

to the most stringent international standards.

Industrial More than 40,000 customers worldwide from more than 60 industrial sectors rely on the rolling bearings and plain bearings, linear guides and direct drives supplied by Schaeffler Group Industrial.

Schaef fler Group Success Factors

Aside from local presence worldwide,

The Schaeffler Group is a family-owned

The success of this company with head-

top quality in manufacturing and

business – and this is its very special

quarters in Herzogenaurach began in

processes, employee focus and

success factor. One of Germany’s largest,

1949 when Georg Schaeffler developed

sustainability, the Schaeffler Group’s

privately owned industrial companies,

the needle roller and cage assembly –

success factors also include innovation

it is characterized by social responsibility

an ingenious invention that helped

and creativity.

and long-term thinking. In addition, a

needle roller bearings achieve their

streamlined and efficient management

international breakthrough.

Today roughly 5,250 R&D employees

ensures that decisions can be taken

In 1952, an INA-made needle roller

at 32 development locations work on

quickly worldwide.

bearing replaced the previously used

the development of new products. Patent applications are filed annually

plain bearings in VW Beetle transmissions Schaeffler Group Brands:

for approximately 1,250 inventions.

and played an important role in the success of this million seller.

Major development locations are in

INA

Today, there are hardly any passenger

Herzogenaurach, Schweinfurt and Bühl,

Founded in 1946 by brothers and

cars without INA engine and transmission

all of which are linked to other develop-

Ph.D. holders Wilhelm Schaeffler and

components. Cam phasers and hydraulic

ment centers in Europe and Asia as

Georg Schaeffler in Herzogenaurach,

bucket tappets ensure higher perfor-

well as North and South America.

this rolling bearing manufacturer and

mance, reduced consumption, fewer

automotive supplier has become a global

emissions and more driving comfort in

player. The INA brand primarily includes

modern engines.

rolling bearings, linear systems and engine components.

The high quality and reliability of its

Whether it’s high-precision bearings

products such as the self-adjusting clutch

rolling bearings, engine components and

used in the Space Shuttle and Airbus

for dual-mass flywheels and the chain

linear technology products have made

A 380 aircraft, wheel bearings with

for continuously variable multitronic

the INA brand a sought-after and reliable

integrated sensors in passenger cars

transmissions. Innovation and technolo-

partner for numerous manufacturing

or large bearings with an outside dia-

gical leadership are important company

customers.

meter of several meters for wind turbines,

pillars. Today, one out of four cars

FAG is the first choice for all major

worldwide has a LuK clutch.

FAG

customers from the aviation and aero-

LuK works closely with its customers

The FAG brand also started out with

space, manufacturing and automotive.

to find solutions for tomorrow’s auto-

an ingenious idea: In 1883 Friedrich

FAG’s range of products and services

motive world. Examples include dual

Fischer designed the first ball grinder

is the perfect complement for the INA

clutch transmissions, dual mass

that could grind steel balls, making

brand.

flywheels, torque converters and

them completely round. This invention

components for automatic transmissions,

is generally considered the historical

LuK

all products that provide added safety

beginning of the rolling bearing industry,

In the Schaeffler Group, LuK is the

and comfort and fewer emissions.

which started its triumphant road to

company that focuses exclusively on

LuK’s Langen-based Aftermarket Service

success in Schweinfurt. Ever since, FAG

the automotive industry.

handles the automotive aftermarket

rolling bearings – a registered trademark

LuK was founded by the Schaeffler

business for the entire Schaeffler Group.

since 1905 – have been synonymous

brothers in 1965 in Bühl and immediately

with first-class products and expertise.

took the technological lead in the

Since its acquisition by Schaeffler in

market with its first innovative product,

2001, FAG has been an important brand

a diaphragm spring clutch. This was

of the Schaeffler Group.

followed by a number of groundbreaking

Global Environmental Protection

Over the past decade, the Schaeffler

All current environmental certificates

The “Competence Center for Safety and

Group has successively established an

and environmental statements as well

Environmental Protection” and its

environmental management system it

as the Schaeffler Group’s environmental

competence groups both plan and

can be proud of. All manufacturing sites

policy are available on the Internet.

coordinate the strategic orientation of

With the validation and certification of

support on environmental protection

European Eco-Management and Audit

its manufacturing sites, the Schaeffler

issues to all Schaeffler Group locations

Scheme (EMAS).

Group has been leading the way in

worldwide.

have been certified per ISO 14001 and some even to the more stringent

the management system and provide

environmental protection. The company The Group’s non-European locations,

has received several awards for this

e.g. in the United States, Brazil, China,

commitment, including the Bavarian

India and Korea, have also successfully

Environmental Medal and has been

passed inspection based on EMAS.

awarded Ford Motor Company’s

Since these countries are not part of

“Recognition of Achievement, Environ-

the European Union, these locations

mental Leadership“ award three times.

cannot be registered and, consequently, cannot be assigned a registration number.

The Schaeffler Group’s worldwide commitment to environmental protection was recognized beyond its own region when it was presented with the EMAS Award in 2005. All of the Schaeffler Group’s manufacturing sites have an environmental protection coordinator. At each location, the plant manager is responsible for ensuring environmental compliance.

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

The relevant departments are informed

These audits are planned and

Environmental protection conferences

in a timely manner about the use of

coordinated at company headquarters

held every year allow participants to

such materials, and the required action

and carried out by the Schaeffler auditor pool.

exchange information and coordinate

is taken. This means that our customers

goals and actions. These conferences

can be sure that products supplied by

last several days and are attended by

the Schaeffler Group contain only

the environmental protection

approved materials.

coordinators from all locations.

that includes details of the current status and recommendations for

Safety rules and regulations also apply Since environmental protection

All locations receive an audit report

improvement.

to contractors working in Schaeffler

conferences were first introduced,

Group plants. A document detailing all

Due dates and responsibilities are

cooperation and coordination

safety-related requirements has been

defined for all relevant measures.

(e.g. for planning environmentally

prepared for contractors working on

relevant facilities) between all locations

the plant premises. Contractors may

have improved tremendously.

not enter the premises to perform their work unless they have agreed in writing

Global Regulations:

to comply with these requirements.

Plant Standards and Procedures All actions relevant for the environ-

Regular Internal and External Audits

ment, such as the approval of indirect

The level and progress of the

materials or the specification of

company’s environmental protection

substances prohibited for use in

are also monitored by regular internal

products and packaging, are regulated

audits at all manufacturing sites as well

globally by special plant standards.

as external audits by an independent

In this way, the Schaeffler Group

environmental verifier.

ensures that hazardous materials are used only if there are no other alternatives.

The EMAS Award (Eco-Management and Audit Scheme) is presented to Schaeffler on October 3, 2005 in Villach. (From left to right) Herbert Aichinger (European Commisison, Directorate-General for Environmental Protection), Miguel Tiago Lopes de Oliveira (Oceanário de Lisboa), Norbert Hörauf (INA-Schaeffler KG), Peter Engelbrechtsmüller (Engelbrechtsmüller Chimney Sweeps).

Environmentally Friendly Products

Environmental pollution and the

Comprehensive Data Management

to record and analyze environmental

depletion of resources can largely be

The company’s own environmental data

information along the entire product

attributed to the increased consumption

coordinator handles inputs and outputs

chain. The insights gained allow new

of products. We must change our way

of material and energy flows for all

solutions to be recognized for environ-

of thinking and insist on environ-

processes and products at the respective

mentally friendly products and sustai-

mentally friendly products that use

plant. Material flow analysis helps further nable development.

fewer resources and minimize the strain

integrate environmental management

on the environment. Our “Integrated

into the company’s corporate units,

Recycling

Product Policy (IPP)” addresses this

such as Logistics, Manufacturing and

We try to ensure that manufactured

idea and aims to promote environmen-

Financial Controlling. Existing processes components are recycled at the end

tally friendly products.

and technologies are questioned

of a vehicle’s service life. This is why

thoroughly, and additional opportunities

LuK and INA are founding members of

The Schaef fler Group’s Advance

for improving processes are recognized

the Partslife recycling system.

Achievements

and put into practice.

This isn’t a new idea for the Schaeffler Group; we have embraced this idea for

Information Networks

many years. We accepted the challenge

Environmental impacts occur even

to design environmentally friendly

when resources are extracted. To make

products a long time ago. What is

products even more environmentally

new are the methods and tools used

friendly, the Schaeffler Group stays in

to achieve this goal. How can we utilize

close contact with its suppliers and

previously untapped potential to

customers. A shared network is used

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.

Code of Conduct for Responsible Company Management

The Schaeffler Group is continuing the

Compensation and Working Hours

Environmental Responsibility

social responsibility of all group com-

We recognize workers’ needs for

We maintain an environmental

panies and sees this as a prerequisite

adequate remuneration and observe

management system at all production

for lasting corporate success.

the legally guaranteed minimum wages

sites world-wide, which we continuously

The Schaeffler Group’s Code of Conduct

in the respective labor market.

improve. Local environmental

is based on the principles of the

We observe the rules that apply to

protection laws and the specifications

“Global Compact”, “The Global Sullivan

working hours in each of our operations.

of the Schaeffler Group’s environmental

Principles of Corporate Social

protection system must be observed

Responsibility” and the standards of

Relationship with Employees and

as a minimum. We collaborate with

“Social Accountability International”.

Employee Representatives

our business partners and suppliers

The basic principles described here

We respect our employees’ voluntary

in exercising our environmental

constitute a minimum standard for us

freedom of association. Independent

responsibility.

and do not affect country-specific

of this, we also enable our employees

additions that are based on the relevant

to express their interests directly to

cultural circumstances.

management on a continual basis.

Conflict of Interests, Gifts and Attempted Bribery We give an undertaking that we will

Human Rights

Reconcilability of Job and Family

not accept gifts or payments or hold

We undertake to observe the inter-

We are a family-owned enterprise.

(company) investments which could

nationally proclaimed human rights in

With our family-friendly arrangements

lead to a conflict of interests.

our sphere of influence.

and provisions we strive to enhance

In particular, neither bribes nor

the satisfaction and motivation of

any other illegal payments may be

Forced Labor

our employees and hence increase the

offered, made or accepted.

We will not engage in or associate

performance of the Group.

ourselves with use of any form of forced labor.

Suppliers Health and Safety

We encourage, where practicable,

We mean to provide a safe and healthy

our suppliers to introduce and

Child Labor

working environment that meets or

implement similar principles of social

We will not engage in or associate

exceeds applicable standards for

responsibility within their companies.

ourselves with use of child labor in

occupational health and safety.

our operations.

We will take steps to prevent injuries and occupational illnesses caused by

We believe each of our employees has

Discrimination and Respect of Others

workplace conditions.

an individual responsibility to follow

We mean to provide a workplace free of discrimination and harassment on

Responsibility

this Code of Conduct and encourage Workforce Development

coworkers to abide by it as well.

the basis of gender, race, skin color,

We see the development of our

Management is responsible for

religious beliefs, age, national origin,

employees as an essential investment

enforcing principles that become part of our rules or policies.

handicap, or sexual orientation.

in the future of our company.

Employees in our workplace deserve

We also value the development of

each other’s respect.

social and technical expertise.

Social Responsibility

Environmental experts around the world

The examples below show that things

Commitment to People

agree that the global environmental

are different at the Schaeffler Group :

The Schaeffler Group is dedicated to

problems of our time can only be solved

ensuring equal opportunities for its

if both economic and social factors are

Health as a Social Factor

employees. This principle, which is also

also considered. On the one hand,

Preventive health protection is one of

included in the “Human Resources

only economically healthy companies

the Schaeffler Group’s major social

Management Guidelines,” describes the

pursue long-term environmental

components. We take up the challenges

equality of all employees, regardless

protection activities, and from a social

associated with this responsibility by

of their gender, skin color or nationality.

standpoint people who are starving or

implementing numerous measures and

suffering social injustice cannot be

projects. Medical checkups, workplace

Retirees are Still Part of It All

motivated to become active in

inspections and medical workplace

Even after our employees retire, they

protecting the environment. The

consultation all help in meeting our

have a number of opportunities to stay

“principle of sustainable development”

entrepreneurial responsibilities, such as in touch with their company.

is based on these assumptions.

occupational reintegration after an

In line with its philosophy of accepting

extended illness or fast first aid in the

Social security, justice and

event of plant emergencies.

consideration, training and company

new challenges, the Schaeffler Group

pension plans aren’t just empty phrases.

has tackled the concept of sustainability.

Apprenticeships and Professional

Generally, sustainability is not seen as

Training for Future Needs

The Group does its part to benefit

an additional job to be completed but

The Schaeffler Group offers

society, putting it on the right track in

as an idea that offers new opportunities

apprenticeships to a large number of

its efforts to achieve sustainability.

since it links problems that were

young people every year, making the

previously treated separately. A view

company a role model in vocational

that integrates economic, ecological

training. After completing their technical

and social issues allows new solutions

or administrative apprenticeships,

to be found and thus contributes to

many former apprentices remain with

the sustainability of a company and

our company and use its comprehensive

of society as a whole.

range of additional professional training courses to stay up-to-date, both in their

Although a lot has been said about sustainability and social responsibility, not a great deal has been done.

jobs and personal lives.

Environment and Social 2010 Schaeffler Brasil

Schaeffler Brasil

With 4,609 employees (in May/2010), Schaeffler Brasil is established in the State of Sao Paulo – one of the most important development centres in the South Hemisphere. It gathers three major brands from Schaeffler Group – INA, FAG and LuK –, with operations centralized in a single plant in Sorocaba, an area of 740,130.73 m², only 96 Km distant from the city of Sao Paulo, major financial centre in Latin America and 10th richest city in the world. Sorocaba city has around 600.000 people. 52 years in Brazil The company has been present in the Country since 1958, when the operations of Rolamentos Schaeffler do Brasil – INA unit, started. In 1958, FAG do Brasil was founded and In 1975, LuK do Brasil was founded and

since 2003, the integration of INA, FAG and LuK units by Schaeffler Group has started. Nowadays, the operations related to these three brands are centralized in a plat in Sorocaba, in Édem – a former rural district which is now part of the industrial area. It has about 35 thousand inhabitants and comprises the Park Governador Mário Covas, with a total area of 500 thousand m². Production In Brazil, Schaeffler operates in three segments: Automotive (assemblers), Automotive Aftermarket (replacement market), and Industry (serving several industrial segments). Counting with one of the most stateof-the-art industrial parks in Brazil in this segment, the company develops

concepts and developments for a wide range of products and projects.

and manufactures from products to the automotive sector, with solutions for engines, clutches and drive systems, pumps, steering-wheels, chassis and bearings, to industrial components for the agriculture, railroad, mining, paper and cellulose, petrochemical, sugar and ethanol, and motorcycle markets. The company's technological capacity enabled aggregating new

Business offices in South America In addition to the manufacturing plants in Brazil, the Schaeffler Group has operations in several other countries in South America. Business offices, located at Buenos Aires (Argentina), Bogota (Colombia), Valencia (Venezuela) and Santiago (Chile), provide structure and proximity to the growing SouthAmerican market. In 2008, Schaeffler celebrated 50 years of operations in Brazil. Competence Centres Schaeffler Brasil is the Schaeffler Group's leader plant in the manufacturing of clutch bearings around the world, exporting most part

of its production to other units of the Company, mainly for those in Europe, but also for the United States, South America, Asia and Africa.

It is also a world manufacturing centre for helical springs and one of Schaeffler Group's competence centres for clutches and drives systems. Moreover, Schaeffler Brasil headquarters one of the Technological Centres of Enhanced Development from Schaeffler Group's Industrial Business Unit, which carries out studies and researches for the development of products and technologies which have not been included in the company's portfolio yet.

Environmental Impacts Legal requirements and allowed limits Occupational Safety and Environmental Protection are among the major corporate goals of Schaeffler Group at al its units around the world. Schaeffler Brasil is committed with the goal of keeping improving its Occupational and Environmental Safety Management System continuously, thus assuring that the Occupational and Environmental Safety Management Policy is duly observed. It is focused on the identification of potential hazards and risks, avoiding or, at least, minimizing the environmental impacts as soon as possible. For such purpose, the company has implemented a great number of actions, including the

awareness of the employees about the importance of assessing and preventing such risks.

The requirements provided for in the standards ISO 14001, OHSAS 18001 and EMAS form the basis of the Occupational and Environmental Safety and Health Management System at Schaeffler Brasil. And above all, the company observes and meets the legal requirements and conditions imposed by the government authorities concerning the Safety and Environment.

At Schaeffler Brasil, 20% of its total area, 740,130.73 mÂ˛, is destined to permanent environmental

preservation. It is guaranteed by law due to the large amount of native trees, such as the pequi tree, which is protected by a specific law from IBAMA (Brazilian Environment Institute). In addition to keeping the natural state of the green area within its facilities, Schaeffler preserves the biodiversity of animals which depend on this vegetation.

The city of Sorocaba is located in a transition area between the cerrado biomes and Mata AtlĂ˘ntica (Atlantic Forest), and, therefore, it has a large diversity of the flora and fauna.

Emissions a) Atmospheric Emissions Several corrective actions are carried out in the manufacturing area of Schaeffler Brasil to reduce and control atmospheric emissions, aiming at assuring a healthy environment to employees, avoiding damages to the environment, and accomplishing the rules and laws in effect. The following are some of the actions adopted:

0 Installation of dry and wet filter systems.

0 Electrostatic precipitators. 0 Cooling lines. 0 Washing process without the emission of gases (non-chlorinated hydrocarbons). 0 Installation of a centrifugation for generating dry wood chip. 0 Both internal and external periodical analyses are performed for monitoring the emissions.

b) Noise emissions The presses have been insulated and received a hydraulic damper, which considerably reduced the noise in the Manufacturing area, contributing for a pleasant work environment and also resulting in positive effects for the company's neighbours, who do not hear the machines running. Schaeffler carries out periodical measurements at the company's adjacent areas to assure the quality of life of the community at the area where the company is located. Employee performing a noise measurement

Acoustic insulation installed

Water conservation and protection of water resources Schaeffler Brasil develops the Clean Water Everyday Project (Projeto Ă gua Limpa Todos os Dias) for the treatment of effluents and water reuse. In the industrial processes, factory water is used, which is reused through domestic and industrial effluent treatment stations. For drinking, consumption and certain industrial processes purposes, it is used the water collected from external wells (water trucks). Additionally, the company channels rain water.

In order to identify new ways for saving water, the company created the Water Committee. Several actions have already been implemented in order to reduce water consumption,

such as emulsion installation, which provides a longer useful life to cooling lubricants, avoiding the unnecessary consumption of water. The installation of water recirculation units, especially for cooling purposes, is another measure adopted for saving water. At restaurants and restrooms, water consumption has also been reduced through the installation of valves on faucets and toilets with low water flow.

Use of natural resources and raw materials In order to improve the use of natural resources and raw materials, Schaeffler has adopted several measures:

0 Larger utilization of natural light. 0 Water treatment and reuse. 0 Disk coating with organic material as a replacement for asbestos.

0 Recycling of clutches. 0 Reuse of raw materials in the injectors.

0 Oil recovery through a briquette machine (around 30.000lts/mouth). 0 Rain water channeling. 0 Vegetable oil recovery for manufacturing soap.

ETAE gathers water consumption reduction to best effluents treatment Alliance of technology and environment has been even more enhanced at Schaeffler no Brasil. Water and Effluents Treatment Station (ETAE) enables reuse of 60% of all the industrial water consumed by the Company. When launching that ETAE in 2006, Schaeffler Brasil tripled effluents treatment capacity from 250 m続 to 650 m続 per day. This results into approximately 12 million liters of water per month which, after being treated at ETAE, are reused in productive processes like roughhewing and polishing of parts. Water and Effluents Treatment Station has physical-chemical treatment aiming to comply with State

Decree 8468 from 1.976, which sets forth provisions related to environmental pollution. Schaeffler's internal laboratory performs daily analyses of the water and three times per year samples are sent for analyses in external laboratories. ETAE is formed by two effluents treatment systems. Clarification treatment system provides lower chemical products consumption and, consequently, less generation of residual sludge sent to sanitary landfill. Cleared effluent is reused after treatment for industrial and sanitary purposes.

treatment for further disposal into Rivers. Valo's laboratory performs daily analyses to certify that the disposal respects Decree 8468. Besides effluents treatment, Schaeffler counts with devices to separate oil and greases: - grease traps: separation of grease from household effluent; - containment basins: separation of oil from industrial effluent; - oil separator: removal of oil from industrial effluent.

Domestic and sanitary effluents receive internal biological treatment by dosing of bacteria which degrades organic matter, oil and grease. After the process, effluents are sent to the Valo de Oxida巽達o (Oxidation Ditch), where they undergo physical

Separate Waste Collection Schaeffler Brasil's solid waste management system is aimed for recycling all the waste generated by the Company. Currently at Schaeffler Brasil, employees perform selective waste collection using the several containers spread across the plant. When there are no technologies to

recycle a certain waste it is assigned to a certain destination pursuant to the environmental protection laws like for instance the medical waste and the sludge from the Water and Effluent Treatment Station. In such instance, waste is transported to the external companies following requirements of the rules set forth by the National

Remediation of Contaminated Sites In the areas with contamination potential, Schaeffler collects samples and performs chemical

Campaign of recycling

analyses to check soil quality, like for instance, deactivation of the dump cart area, cyanide bath, etc.

Agency of Ground Transportation. Schaeffler demands destination certificates from all such suppliers.

Environmental Management System Environmental aspects and eventually existing risks are considered for each area. A value has been set for each environmental risk, taking into account the following items:

0 Law: score from 0 to 3, according to the number of laws related to the environmental aspect which the company has to comply with. 0 Danger: score from 0 to 3, considering the impacts over the community.

0 Cost: score from 0 to 3, considering the cost of the corrective measures in case of environmental impact (emergency/accident). For the areas where the result of the law x danger x cost factors is higher, the environmental risk has been considered to be higher. In Schaeffler, a comprehensive data management is performed on monthly basis regarding consumption of the used material and energy.

Facilities Requiring Approval New areas construction projects, like buildings, divisions, warehouse areas, etc. are sent to the Environment Department in order to identify the applicable laws for each case and to define procedures to be

followed. Possibilities of making use of daylight, rainwater collection, reuse of dissipated heat in equipment, environmental protection, natural resources exploration, etc. are also assessed.

Environment Department has to confirm its awareness of the project with signature of the plant's Environment Coordinator.

Transport and Logistics Schaeffler Group has a transportation management system that encompasses environmental and occupational and patrimonial safety legal aspects. With the purpose of reducing CO2 emissions, some projects have been implemented in logistics and transports.

Today, transportation of internal grinding waste is done with LPG fueled forklifts, instead of diesel trucks. The same truck which brings parts from the foundry also transports the scraps to the foundry. Furthermore, Schaeffler Brasil uses a logistics supplier that counts with storage area in SĂŁo Paulo city, acting as a distribution center, which

enables company trucks to travel with full capacity, eliminating several trips with half load. Conditions of waste and chemical products transportation trucks are assessed every day â&#x20AC;&#x201C; from the tires' conditions until the color of the smoke, also using Ringuelmman Scale as control means.

Indirect Environmental Impacts Products and Packaging Schaeffler Brasil uses recyclable packaging for its entire range of products. During transportation, products are placed into returnable packaging which are washed and reused. This measures reduces the use of raw material and natural resources, as well as generation of paper and plastic waste. The company also incentives the use of recycled paper for printing both in the administrative and productive areas.

Rejected products are sent for foundry companies, where they are recycled to be reused in the steel market. Furthermore, Schaeffler Brasil plans to emphasize the need for agreements and measures aimed at protecting the environment in negotiations with its transport and logistics contractors.

Employee Transportation Use of collective transportation is stimulated by Schaeffler, which provides 77 bus lines for employees' commuting, for all shifts of the company and leaving from different regions of Sorocaba city and neighboring cities. Thus, employees are benefited in their life quality, comfort and safety. And the company contributes with

reducing the number of vehicles circulating, traffic in the city as well as reduction of CO2 emissions. Schaeffler requires that the bus company and other suppliers keep their vehicles always in good conservation conditions to reduce CO2 emission and avoid leakage. Ringelmann Scale is used for such control.

Reducing CO2 Solidary Lift Campaign (Campanha Carona SolidĂĄria) employees who prefer to go to work with private transportation are being stimulated to share the vehicle with their work colleagues. Therefore, Schaeffler is promoting the Solidary Lift Campaign.

Suppliers Our supplier ratings always take environmental certifications into consideration. We verify the relevant status on a regular basis. Purchases Department performs periodical audits in all the suppliers to check compliance with the environmental laws and requirements demanded by Schaeffler Group, including ISO 14001 Certificate, legal environmental licenses, OHSAS 18001 Certificate, etc. Those certificates and the audit score are controlled by software in the Internet, where suppliers can check their scores and update their licenses.

Waste Management Companies Periodically (at least once a year), the Environment Department sends a questionnaire on the environmental matters to the suppliers and service providers aiming to qualify them.

The third parties that shall be subjected to qualification in order to render services to Schaeffler are: 0 Companies in charge or removing residues; 0 Companies that receive residues from Schaeffler; 0 Transportation companies; 0 Analysis laboratories; 0 Manpower providers â&#x20AC;&#x201C; The Purchase Department has software that manages and qualifies such providers in specific manner.

In 2009, 35% of Schaeffler Brasil's suppliers held ISO 14001 Certificate. Those companies, already certified by ISO 14001, do not need audit and self-assessment. Service providers like food, safety, cleaning companies and the like are submitted to integration programs, constant training and best control over compliance with Schaeffler Group's standards and policies.

Changes in Our Brazil Unit Fewer Emissions: Energy saving A committee has been created, formed by professionals from the Electrical Maintenance and Environment areas, which prepared an information gathering of the existing enhancement opportunities. Based on that, several actions have been implemented such as replacement of lamps by more efficient lamp holders, checking of

air conditioning and computers use conditions as well as compressed air, and others. The number of lamps has been reduced and 50,000 kWh/month of energy consumption are saved. Prismatic sheds have also been installed, which enhance the use of natural lighting excluding the need

for artificial lighting in some places. In areas of the Production department, photovoltaic cells have been installed to reduce energy consumption.

Maintenance

Water saving

Waste disposal

Maintenance of motors is also an important measure to reduce electrical energy consumption. Motors with more than 5.0 HP are not sent for maintenance â&#x20AC;&#x201D; they are replaced by new ones.

Installation of faucets with automatic closing valves system.

New premises have been specially built for waste disposal at INA unit, aiming to assure most adequate site for those types of material.

More yielding from the air compressed system

Replacement of chemical products Several chemical products used in effluents treatment have been replaced, improving effluents treatment capacity.

Air compressed system has been changed by a new one, with best performance (high performance equipment, with 50% yielding).

Risk Management Management of risks and emergencies About 10% of Schaeffler Brasil's employees are prepared for acting in case of fire, leakage and other emergencies. They made up Schaeffler's Emergency Brigade â&#x20AC;&#x201C; they are employees from different areas in the company, who have take part in theoretical and practical training on safety procedures and first aids. These courses are delivered by professionals from the Safety, Environment and Occupational Health Department, duly trained by the fire brigade.

The Emergency Brigade is composed of three teams: Fire Fighting; Insulation and Evacuation; and First Aids. Brigade members are identified by red shirts; in case of emergency situations, they are trained to adopt all required procedures, aiming at reducing the damages caused by the accident to the most. Schaeffler Brasil has an emergency vehicle

equipped with fire extinguishers, material for stopping leakages, personal protection equipment, and equipment for fighting fire in the woods. Additionally, it counts with two ambulances. Schaeffler is equipped with a fire alarm system which may be activated by any person who identifies an

accident. The Reception will immediately identify, using computers, the location where the system was activated. The Emergency Brigade gathers at the meeting point and performs actions required for organizing the evacuation from the area and for fighting the fire â&#x20AC;&#x201C; or any other emergency.

Protection at the storage of chemicals The storage of chemicals is strictly controlled at Schaeffler. These products are stored in warehouses separated from other stored products, on stainless steel trays with rails. Each product, when it arrives at the company, is identified with its respective emergency record fixed on a visible and easily accessed place. Both the instructions for the supply of bulk products and the operation flowcharts of utility centres are always kept updated by the company.

Recycling of parts Schaeffler maintains a clutch recycling program. Almost 6,500 clutches are recycled every month.

Control of chemicals Schaeffler Brasil is constantly searching in the market for less-toxic raw materials, and which do not cause harm to employees or the environment. This work is performed pursuant to P170070.

Security of the facilities For further control of visitors' access, Schaeffler Brasil has a security system on which the employees schedule appointments with visitors,

through software, recording the document number, photo and car plate.

Focus on the Environment

Schaeffler Brasil adopts several actions towards respect and preservation of the environment – both in products development, purchase of raw material, production, delivery, disposal and discharge of material. This is the path towards sustainable development. Concerned with informing its employees about the relevance of

environmental preservation, Schaeffler starts the awareness work promptly upon integration of the new employees, when information about standards ISO 14001, EMAS and OHSAS 18001 are provided, as well as the Safety and Environment Policy, Code of Behavior, selective waste collection, the need to reduce water and energy consumption, environmental analyses, etc.

In every department of Schaeffler there are the “Environment and Safety Facilitators” – employees that are trained in several matters and who have the role of providing directions and replicating the information on environmental protection and safety to the team.

Incentive to good environmental practices To incentive material recycling process and reduce consumption of nonrenewable material, Schaeffler Brasil adopted the use of recyclable paper in the entire administrative area, in the company’s stationery, as well as in the production of Schaeffler Brasil em Revista, in Schaeffler Informa Journal , in the business cards, etc.

Schaeffler has also extended its concern with the environment to the events fostered by it and in which it takes part using, for instance, recyclable material in the stands, as well as distributing ecologic bags and pens as gifts.

Schaeffler Brasil also incentives employees to pay attention to new ideas that result into reduced fuel, electrical energy, water and raw material consumption, thus contributing for environmental preservation. The Company awards suggestions for improvement.

The Suggestions Program existing in

ECOBAGS

ECOPENS

Training of Environment and Safety Facilitators

Environmental awareness

INA, FAG and LuK products: for the good of the environment Saving fuel, reducing emission of pollutants, reducing noise, looking for new renewable energy sources. Development of new technologies in Schaeffler Brasil follows this path: environmental protection aiming to preserve the planet. This is the focus that has been guiding the company's technological innovations. Increasingly more, Schaeffler is concerned in developing solutions that contribute for environmental preservation. This equation is found in several INA, FAG

and LuK products – prepared with raw material and components that do not harm the environment, free from heavy metals and non-prejudicial to the health –, which are part of cars, buses, trucks, machines and industrial equipment. Furthermore, for more than 10 years Schaeffler Brasil has been producing remanufactured packaging, using already worn components, in good shape, and changing those who are worn out. Under the name of “Reciclado LuK” (LuK Recycled), those remanufactured products have

the same quality and warranty of new clutches and still contribute with the environment. Schaeffler also participates in the renewable energy market, manufacturing bearings that equip wind generators – which produce energy out of the wind.

Health and Safety

Safety Management System The Safety and Environment Department has prepared a checklist for risk analysis at 100% of the work positions, covering from the layout, risk exposition degree, protection types available, ergonomics, pressurized lines, environmental concerns, fire hazards, electricity, and zero energy. For the items on this checklist which presented noncompliances, the safety risk has been computed based on:

Executivos inauguram o novo centro mĂŠdico

Class

Hazard Severity

Value

Example

Class 1

Critical potential of accidents and diseases

7.5 to 10.0

Fracture (7.5), amputation (9.0),

Class 2

Potential of accidents and diseases with lost working days

5 to 7.4

Muscle contractions (5), back pain (6) bruise with cut (7)

Class 3

Potential of accidents and diseases without lost working days

2.5 to 4.9

Distension (2.5), burn (4), electric shock (4.9)

Class 4

Potential of accidents or diseases which might be solved at the internal medical facilities

0 to 2.4

Superficial injuries (1), small cut (2), irritation (2.4)

Class

Hazard Probability

Value

Example

Class A

Frequency of once a year

7.5 to 10.0

High probability; it can happen at any

Class B

Frequency of once at every 2 years

5 to 7.4

Probable; it can happen

Class C

Frequency of once at every 4 years

2.5 to 4.9

Improbable; it can

Frequency of once at every 8 years

0 to 2.4

Class D

seldom happen Very improbable; maybe

Hazard Prevention

Example

There is no prevention.

There is no prevention; the risk control is not effective.

There is little prevention.

There are PPEs and safety procedures.

There is certain prevention.

There are training and procedures.

There is a lot of prevention.

There are sensors and protection bars.

There is enough prevention.

Fully closed; there are procedures.

Manual of Environment and Occupational Safety Integration The philosophy, concepts and standards that guide all the actions of Schaeffler Brasil are expressed in the Manual of Environment and Occupational Safety Integration.

Notice Boards: weekly updated, notice boards disclose miscellaneous information like tips on health, culture and entertainment.

Schaeffler Informa: Human Resources' tool highlighting information about all the safety and environment actions as well as information of the Company's personnel department, aiming to keep employees well-informed.

Leaflet fixed on the notice boards

Communication strengthens the awareness The Company communication vehicles strengthen the employees' awareness process as well as keep them informed about the measures, events and news related to the environment and safety. Check out the communication channels: Revista Schaeffler: bimonthly magazine gathering news about the company, Schaeffler Group and subjects of interest to the employees, with 5 thousand units printing.

Intranet: The Intranet provides important documents on environmental matters like the Environmental Protection Manual, Environmental Procedures, Emergency Files for Chemical Products, Digital Certification, etc.

Schaeffler Informa Newspaper Plant Tour Folders: Distributed at the reception desks to make visitors aware of the company's rules and to enable location aided by a map.

Intranet Main Page

Email Marketing: Specific notices are distributed by email, reaching a large portion of the Company's employees.

Cover of Schaeffler Brasil em Revista

Plant Tour Folder with information for company's visitors Por dentro do Meio Ambiente â&#x20AC;&#x201C; monthly newsletter disclosing information on the greenhouse effect, biome, water, energy, wastes, air quality, etc.

The result of severity x probability x prevention factors has been taken into account in the safety risk. The risk has been classified as follows:

Severity x Probability x Prevention Factors Severity

The action plan and the terms have been proposed based on the risk classification. After the implementation of the action plan, the number of accidents shall reduce, as shown in the chart bellow:

Probability Class A

Class B

Class C

Class D

Class 1

Unbearable

Class 2

Unbearable

Substantial

Class 3

Unbearable

Substantial

Mild

Class 4

Substantial

Mild

Unimportant

Risk Elimination

400 300

Safety Indicators Schaeffler Brasil studies and analyzes the accidents, and eliminates their major causes. The safety management system aims at reducing accidents. The risk assessments and the action plan have been prepared for creating a better and safer place for working.

200 100 0 2009

2010

2011

Risk elimination

2012

Accident number

AVERAGE OF ACCIDENTS WITH LOST DAYS 2008-2010 3,67 4 4 3 3

1,75

2 79999

Solare Schaeffle

2 1

0,50 0,08

0,33

0,125

0,33

0,17 0,08

Average 2008

Average 2009 INA

LuK

Average 2010 FAG

Zero Accident Projects Accident Elimination and Prevention Program (AEPP) The purpose of this program is to eliminate accident risks, by turning the daily practice of preventive actions into a customary behaviour. The program encourages the participation of all employees in the

elimination of day-by-day risky situations, which are many times related to people's behaviour, and thus contribute for a healthy and safe work environment. The program includes monthly meetings and awarding of most well-succeeded teams at the end of the year.

OZAS-6 This program is focused on six topics with the purpose of eliminating accidents:

1 – Internal transportations and cargo movement

2 – Seizing points

3 – Ergonomics

4 – Risk of fall

5 – Electric power

6 – Chemical products

Events dedicated to the environment and safety

Environment preservation and maintenance of safe worksite depend on the individual as well as the collective behavior. Reflecting upon and rebuilding the relation with nature and machines are major challenges.

every year, two Internal Occupational Accidents Prevention Weeks (Sipat), the Internal Environment Week, the Internal Traffic Week and four Face to Face events. The purpose is to enlarge the environmental and safety concepts both inside the company and in the employees' private life.

Traffic Week In the period from April 5 to 9, Schaeffler Brasil held the Traffic Week where the employees listened to lectures on internal rules of traffic safety. The main target audience were the 241 forklift operators.

Therefore, Schaeffler Brasil fosters

Sipat 2010 The Internal Occupational Accidents Prevention Week (Sipat), held in May, was attended by 2,572 employees.

Dining areas in order to, in a playful and joy manner, highlight the relevance of using the PPE in the plant.

During the event, OZAS 6 Program was introduced, which aims to assure zero score in accidents. Several theater performances were presented in the Production area and in the

This year, Sipat also involved the families, realizing the Contest â&#x20AC;&#x153;Vamos Colorir o Solareâ&#x20AC;&#x153; (Let's Color Solare), focused on the employees' children.

A citizen company: respect for employees, the community and the environment

Schaeffler Brasil has a great responsibility towards its employees and the community. Therefore, it adopts several actions intended for contributing with the improvement of life quality in the areas where its facilities are located. In addition to the qualification of its own staff, Schaeffler offers education and professional qualification opportunities to hundreds of young people and supports universities.

Over 54 thousand training hours for professional qualification Schaeffler maintains a policy of valuing its professionals, fostering

both individual and staff talents, always respecting social, cultural and economic diversities. Therefore, it has a comprehensive program of professional development and qualification, in addition to offering a competitive benefit package, with the purpose of associating the company's growth with people's well-being.

The Training Program developed by the Human Resources, Communications and Corporate Relationships Management delivered over 54 thousand training hours in 2009. The actions were based on the company's needs, and employed job

descriptions, functional curriculum and pieces of information provided by the managers, which helped to direct the trainings to more specific needs.

Twenty-five operation training types have been developed in several areas, focused on Quality, Mechanics, Design, Occupational Safety, Pounds, etc. Schaeffler also delivered specific training to 20 individuals with special needs.

Opened the MOVE Academy The MOVE Academy has been opened with a challenging goal: training one thousand people on the theoretical and practical grounds of this methodology. The purpose is having 20% of the company's employees mastering MOVE's concepts. The training is directed to those involved with decision making and who have influence over the company's processes, from executive officers, managers, leaders, supervisors and technicians who define the processes. They are all being trained to know and apply the tools which will make MOVE's three bases feasible: improvement of quality, delivery services and competitive costs.

The Learning Program has already qualified over 500 youths For 17 years, Schaeffler Brasil has dedicated itself to the professional qualification of young people through the Learning Program. Since its creation in 1993, the Program has already qualified 542 apprentices at Senai's industrial courses. From this total, 90% were hired by the company after they graduated.

Five courses modalities are available: Operator of Industrial Production, Maintenance Electrician, Machining, Plastic Mold Tooling and Cut, Bend and Stretch Tooling. Duration of one to two years depending on the course, and all of them comprise theoretical and practical classes, both at Senai and at Schaeffler.

A school dedicated to forming both professionals and citizens Schaeffler's Formare School has already provided qualification through its Product Assembly Mechanic course to around 190 youths, distributed in 10 classes arranged since the project was implemented in 2002 in partnership with FundaĂ§ĂŁo Iochpe. From this total, 158 have been hired by the company after their graduation. This year, in February, the 11th class started, comprising 20 students who shall complete the course in November. Schaeffler's employees act as volunteer teachers, delivering the course's subjects. From Schaeffler and the partner companies, the students receive half minimum wage and several benefits: medical and dental care, pharmacy allowance, basic food basket, life insurance, medicines, uniform, etc.

There's quite a competition in recruitment of these youths. This year, the company received applications from 389 students, 169 of which were chosen for the tests of focused attention; logical, mechanical and abstract reasoning; general knowledge; and interviews, resulting in the selection of 20 students for the new class.

Benefits, services and recreation for employees and their families

Schaeffler increased the benefits and services provided to its employees in 2009. The following are among the news: revitalization of the restaurants, new health prevention programs, introduction of dental care, etc. The purpose is to ensure the well-being, health and safety of our staff. The actions aim at the improvement of our employees' quality of life, i.e., at their valuing both as professionals and as individuals. The company wants everybody to have total peace of mind to perform their activities, within a healthy corporate environment, where the respect shall always be a priority. Check out:

Health and quality of life Schaeffler develops vaccination campaigns and fights against cancer, hypertension, high cholesterol, dengue fever and other issues, as well as lectures on Aids, women's health, obesity, drugs, breast feeding, diabetes, etc. It has delivered a course directed to pregnant women, which discussed the importance of prenatal care and provided guidance about the delivery and baby care.

Food At Schaeffler, 94,107 meals, 27,207 breakfast and 19,048 snacks are served monthly. Meal expenses are almost fully afforded by the company, the employees have but a small part in the payment of such expenses.

include medical office appointments, hospital stays, and laboratory tests.

Life Insurance The company has a life insurance plan for all its employees.

Breakfast Breakfast is served every morning, and it includes bread, butter, milk and coffee, as well as fruits, cold meats, fruit juices, or a cake three times a week.

Health care Schaeffler maintains an infirmary physiotherapy services within its own facilities, in addition to providing medical insurance to the employees and their families â&#x20AC;&#x201C; wives (or husbands), companions (with documents), children up to 21 years old and, if college students, up to 24 years old. These insurance plans

Dental Care In 2009, the company entered into an agreement with a dental insurance plan which includes appointments, root canal treatment, dental restorations, tooth extractions, and endodontics.

Restaurants The revitalization of two restaurants has provided more comfort to its employees at their mealtime. The restaurants have been renewed, with the change of furniture and benches, as well as some decorative touches, providing a pleasant, state-of-the-art look.

Partnership with drugstores The company entered into a partnership with two drugstore networks which operate in Sorocaba and around, and now they offer discounts from 10 to 15% over the value of the medications for the employees.

Schaeffler Club The Schaeffler Club offers a wide structure for sports and recreation. It comprises courts, gym center and game room, in addition to several activities such as sport tournaments, fishing, videoke, excursions, shows, craft classes, etc. Schaeffler Brasil is always present at regional sport

competitions played among industries, and it has ended as the winner 13 times in a row.

Celebration events Several cultural activities are carried out at the company, such as festas juninas (June parties), Christmas parties, and parties for employees who have worked at the company for 10, 25 and 40 years.

Basic food basket The company provides free basic food baskets to its employees. These baskets account for a cost over R$ 3.6 million per year to Schaeffler.

Transportation Freight transportation covers every arrival and departure times, serving the cities of Sorocaba, Votorantim and Sao Paulo. Therefore, 34 buses perform 3,455 travels per month, on the different lines. The transportation service cost over R$ 5.8 million per year to the company.

PPEs Safety is a priority at Schaeffler Brasil, which, therefore, provides every PPE required for the employees to perform their jobs. Only in PPEs, the company invests about R$ 2 million every year.

Sou Mais Schaeffler Program The Sou Mais Schaeffler Program has been launched for providing benefits and facilities to the employees and their families at several commercial establishments and institutions in general. This program is also extended to apprentices and their families. It guarantees access to a number of commercial institutions from the most different segments, such as education, health, recreation, culture, services, among others, with special advantages and discounts.

Goals and Programs

Briquetter

Sensors have been instaled

Water and Effluents Treatment Station 45

Accomplishments Environmental Targets

Environmental Programs

Complete?

Actions

Reuse of mineral oil

Installation of briquetter and recovery of 30% of monthly mineral oil consumption

Briquetter has been installed in 200 7 and 20,000 liters of mineral oil have been recovered and used in the oil center.

Reduce 25% of water consumption

Reuse of 4 thousand cubic meters of treated waste water

Waste water treatment has been installed and 2,500 cubic meters of water have been reused.

Reuse of Rainwater

Perform studies on the possibility of reusing the Rainwater.

A study has been performed to collect, treat and reuse rainwater. Project to reuse in average 6 thousand cubic meters of Rainwater from the L1, L2 and L12 buildings (which represents 40% of the water consumption) will payback itself in two years.

Creation of an environmental newspaper for the company

Creation of “Fique por dentro do Meio ambiente” (Inside the Environment).

“Fique por Dentro do Meio ambiente” has been created in 2007. Such newspaper is fixed on the Notice Board and made available in he Intranet every month.

Studies on leakages in the compressed Ari system

Purchase of ultrasound equipment to detect leakage in the compressed air system

Two employees were contracted through external companies to correct compressed air leakages. Compressed air consumption was reduced by 8%.

Studies on energy losses in the company

Purchase of equipment to detect energy loss

In the new buildings, heat lost in compressed air generation systems will be reused to heat water for bath.

PEPA – Program to eliminate and prevent accidents

Implementation of the program at two Production Units

The program has been implemented at UP-4 and in the Printing production.

Elimination of risks of Installation of sensors fire in grinding

Sensors have been installed.

Review of 100% of the CO2 systems

Adjustment of all furnaces from 2, 7 and 8 buildings

100% of the CO 2 systems were reviewed.

Reduction of bad use of the PPEs

Bad use reduced by 25 %

Foam ear protector replaced by silicon protector. PPE request frequency system implemented.

Without project or action

With action/project, but not approved

With action/project, but not performed

With action/project performed

With project or action rejected

Future goals Environmental targets

Environmental Programs

Person in charge

Conclusion

Water committee

Reduction by 30% of waste water from the oil system

Environment and Safety Department Maintenance and Laboratory

December, 2010

Ultra-filter system

Treatment of waste water using ultrafilter and 80% reduction of chemical products use in the system

Laboratory

December, 2010

Reuse of treated waste 100% reuse of treated waste water water

Laboratory

December, 2010

Reconstruction of machines from FAG unit for transfer to Sorocaba plant

Maintenance

December, 2010

Reconstruction of 100% of the machines, according to the schedule and environment and safety regulations

Remodeling of waste disposal area of LuK unit

December, 2010

Remodeling of Water and Effluent Treatment Station of LuK unit

December, 2010

Removal of liquids found in the dregs of the emulsion sent for recycling

Environment Department

December, 2011

Studies on the reuse of Rainwater

Environment Department

December, 2011

Environment Department

December, 2011

Performance of studies to check possibility of reusing the Rainwater

Use of solar energy -

PPRPSâ&#x20AC;&#x201C; Implementation of Installation of safety equipment safety conditions at the presses

Environment and Safety December, 2012 Department

Validation and Responsibility

Responsible for environmental

Validation

Resonsible for the environmental

The accredited environmental verifier

protection at the Herzogenaurach

statement at the Herzogenaurach

(Permit-No DE-V-0007) Dr. Reiner Beer

location:

Kurt Mirlach

Bernhard Leuchner-van Nieuwenhuyse

Executive Vice President,

Environmental Protection Coordinator

has examined Schaeffler KG at the site Industriestraße 1-3, 91074 Herzogenaurach for compliance with all requirements of the EC Regulation 761/2001 and declares

Human Resources

herewith that the environmental management system, the environmental audit and its results as well as the environmental statement conform to the requirements of the regulation. There are no indications of deviations from the relevant legal requirements. The data and information in the environmental statement of the above organization provide a reliable, credible and correct picture of all the organization’s activities.

27.9.2007 r. RDeiner Beer Environmental Verifier Environmental Verifier/-organisation As Environmental Verifier / -organisation was assigned Dr.-Ing. R. Beer (Registration No. DE-V-0007) INTECHNICA Cert GmbH (Registration No. DE-V-0279) Ostendstrasse 181 90482 Nürnberg (Germany) An updated environmental statement is published every year in July. The next consolidated environmental statement will appear in July 2010. The Herzogenaurach location has been registered as per EMAS and has been assigned number D-158-00016.