    

 
   










Sustainability repor t


2019

















 


































 


  















 


















  















 

 






































  













  












 



   



 

 
 
  



  









spotlights

2Bosch sustainability report 2019 | spotlights



 
 


     
  




 
 




















 























  





















    





 






































  


 






 
   
 
 

 
    
About this reportThis issue of the spotlights magazine
presents highlights from the reporting
year – in line with the “New Dimensions –Sustainability 2025” vision.
All facts, figures, and nonfinancial information on the Bosch Group’s sustainability
activities can be found in the factbook:

In addition, our online stories provide
insights into the subject of sustainability
at Bosch through incisive stories, images,
and video material:1
Contents

Contents

Sustainability as ourtarget vision
Sustainability at Bosch

ClimateEnergyWater

Urbanization

Globalization

HealthBosch at a glance

Publication details

2
6
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26
30
31

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Bosch sustainability report 2019 | spotlights

Sustainability at Bosch

Sustainability
at Bosch
We are motivated by the desire to develop products that are “Invented for life,”that fascinate, that improve quality of life, and that help conserve natural
resources. For us, that means thinking ahead, focusing firmly on the future ofgenerations to come, and consistently pursuing sustainability as a company.

“We act prudently and responsibly for the benefit ofsociety and the environment.” This claim anchors thevalues of sustainability and responsibility in Bosch’s
mission statement. 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 areintended to promote sustainable development worldwide. We support these goals with our products andservices by offering solutions to social challenges andfinding answers to environmental and social questions.

Our commitment
Based on our broad understanding of sustainability
at Bosch, our commitment comprises environmental,
economic, and social dimensions. As a company withbroad-based, global operations, we face a large numberof highly diverse expectations on the part of our stakeholders – from business partners and associates throughto policymakers and nongovernmental organizations.
These translate into a wide range of sustainability
requirements in different fields that we analyze and forwhich we set ourselves targets and develop forwardlooking approaches for the entire value chain.

We act prudently andresponsibly for the
benefit of society andthe environment.

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3


Sustainability at Bosch

Sustainability along the value chain
Purchasing

Production
and associates

We accept our responsibility and pursue sustainability at
all stages of the product life cycle. Starting with purchasing: we work together closely with our suppliers andhave defined clear requirements. These cover climate
and environmental protection, resource conservation,
fair working conditions and competitive practices, andrespecting human rights.

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

Customers and society
One of our strengths is guaranteeing our customers the highest quality andsafe products. Our primary intent in the long term is to thus move to a way ofliving and doing business that conserves resources and has a positive impact
on society. At the same time, we see ourselves as an active member of society
and get involved through a wide range of activities. Public-benefit institutionsin Brazil, China, India, Mexico, and the United States that seek to reduce poverty and give people access to education in the respective communities are oneof the means by which we put our social responsibility into practice. Bosch
donates far in excess of 20 million euros to charitable causes around the world.

4
Bosch sustainability report 2019 | spotlights

Our target vision:
new dimensions
In line with its longstanding commitment but with a greater focus onsocial challenges, Bosch has set itself clear sustainability targets. Our “NewDimensions – Sustainability 2025” target vision focuses on six megatrends.

In light of the complex requirements and breadth of relevant sustainability topics worldwide, we asked ourselves
how we as a company can best contribute to sustainable
development. With this in mind, our sustainability experts
analyzed global megatrends, conducted an industry-wide
benchmark survey, and engaged in in-depth dialogue withstakeholders.

Material issues
The issues of the “New Dimensions” target vision havebeen derived from the 2018 materiality analysis andare the cornerstones of our sustainability management:
climate, energy, water, urbanization, globalization, andhealth. With respect to all these issues, we focus on those
aspects where we can contribute the most in terms ofprotecting the environment and people.

“ We want to take action
wherever it will bemost beneficial for theenvironment and society.”
Torsten Kallweit, Head of EHS and
Sustainability at Bosch

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Find out more about our“New Dimensions –Sustainability 2025” target
vision.

5ClimateEnergyAspect 1: Energy efficiency
We want to save 1,700 gigawatt-hours
by 2030 using energy-efficiency measures.
To achieve this, we will invest a total of morethan one billion euros.

1 | Health + Safety
2 | Substances of concern+2
You can find more information aboutteclimate
e 1on
p
3
o
a
pages 6 to 9.
im sc pe
Cl CO 2 sco|
1 CO 22|

Aspect 1: Occupational health andsafetyBy 2020, the accident rate should be no
more than 1.7 accidents per one million
hours worked.

You can find more information about
health on pages 26 to 29.

Water

Sustainability 2025

Aspect 1: Water scarcity
Bosch wants to systematically reduceby 25 percent its absolute water withdrawal at 61 locations in regions withwater scarcity by 2025.
Aspect 2: Water quality
Bosch has set itself the goal of continuously improving the quality of water
discharges.

HealthAspect 2: Substances of concern
To efficiently manage prohibitions andrestrictions on materials, Bosch continuously updates its IT-based system Material Data Management for Compliance andSustainability.

New Dimensions

Aspect 2: Renewable energies
We plan to increase the volume of power wegenerate from renewable sources from 55 to
400 gigawatt-hours and considerably extend
the green electricity we buy in from new
Eplants
by 2030.
n
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2 | neRYou
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pages
c 13.
ab fitole iencen yergy

1 | Water scarcity
2 | Water quality

Aspect 2: Scope 3 CO₂ emissions
CO₂ emissions in the scope 3 categories
of “purchased goods,” “logistics,” and “useof products sold” are to be reduced by
15 percent by 2030.

Water

Aspect 1: Scope 1 and 2 CO₂ emissions
Bosch is committed to the Paris Agreement’s
target. From 2020, the company will be
climate neutral in terms of the volume ofenergy it generates and purchases (scope 1
and 2).

HealthSustainability at BoschGl

1 | oba2 | Res lizat
Su pon ion
pply sibilch ityain

Globalization
Aspect 1: Responsibility
With around 398,200 associates worldwide,
Bosch takes responsibility for sustainability
and creates transparency within the meaningof the standards issued by the Global Reporting
Initiative.
Aspect 2: Supply chain
The aim is to more clearly identify the ecological and social risks in the supply networkand to refine current measures on that basis.
In 2020, the focus will be placed on humanrights in particular.
You can find more information about globalization on pages 22 to 25.

You can find more information about waterts
en on pages 14 to 17.
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on es teati e ass Was
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Ur Life ourc
1 | Res2|

Urbanization

Aspect 1: Product life cycle
In order to strengthen the circular economy,
Bosch plans to launch a strategic project in2020 that combines the operating units’ efforts
and provides an overarching framework.
Aspect 2: Resources and waste
With regard to resources, Bosch focuses onwaste avoidance (Zero Waste to Landfill)
and reducing hazardous waste.
You can find more information about urbanization on pages 18 to 21.

6Bosch sustainability report 2019 | spotlights

ClimateAdvancing with foresight:
climate action beyond
company boundaries
Climate change requires urgent action. 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.

Industrial companies such as Bosch have a big part toplay in efforts to achieve a largely climate-neutral world.
According to the International Energy Agency, industry
accounts for around 19 percent of global CO₂ emissions.
On top of our clear objective to make our more than 400
locations climate neutral as of 2020, we are going a stepfurther: we have additionally set ourselves an ambitious
target for lowering our indirect emissions in order toreduce our carbon footprint – even beyond company
boundaries.



For more information about how we
cut carbon emissions, please refer toour factbook 2019.

Climate action
across the entire
value chain
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 havean 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 asreference points.

Bosch climate goals
Purchased goods and logistics

Energy volumes generated and purchased

climateneutralas of 2020

– 15%
by 2030

Use of products soldScience Based Targets
initiative (SBTi)

7
Climate

Technology neutrality forbetter air quality
Mobility can make a big difference when it comes toclimate action: transport currently accounts for 24 percent
of greenhouse gas emissions worldwide, making it thesecond-largest contributor. Moreover, the transport sector
also affects air quality in urban regions. If the climate
targets set by policymakers are to be achieved, CO₂ emissions from traffic worldwide will have to be slashed by
50 percent over the next four decades – and indeed by atleast 85 percent in advanced economies.
As one of the world’s largest automotive suppliers, we
already contribute to low-emission mobility today. We
are determined to further reduce CO₂ emissions in themobility sector by developing new powertrain technologies and by using synthetic fuels. Our vision is clear: thefuture of mobility will be emission-free. Therefore, we
pursue technology-neutral development without limiting
our efforts to a specific type of powertrain. Instead, we
prefer to take advantage of the individual strengths of thevarious options available. Whether gasoline or diesel
engines, powered by natural gas or electric drive – weare rigorously working on refining powertrain systems.

Find out more about innovative
powertrain systems at Bosch –from combustion engines toelectric drives and fuel cells.

The Bosch powertrain mix
Fuel cell

BatteryDelivery traffic




Urban

Power­
train
mixExtra-urbanCommuters

Combustion
engineSynfuelsHybrid“Bosch is approaching future
powertrain technology with
an open mind.”Dr. Stefan Hartung, Bosch board member and chairmanof the Mobility Solutions business sector

8
Bosch sustainability report 2019 | spotlights

THE WAY FORWARD – AT OUR LOCATIONSHelping shape change
Many companies are currently working on unconventional
ideas for new mobility solutions. Established in early
2019, the Progressive Mobility Players (PMP) business
unit serves as a competent partner and central interface
for our divisions within Bosch.
Three questions for Stefan Seiberth, Head of PMP
What made you decide to establish PMP?
Mobility is changing faster than ever before, and new
players on the market are seizing the opportunities
offered by changing mobility. An increasing number ofsmall, innovative firms are entering the electromobility
market with unconventional methods and fresh ideas oroffering new services for forward-thinking transportation.
This is where PMP comes into play, as these customers
are dependent on competent partners. PMP scans the
new mobility market for trends, analyses customers’
business models, and can then bring exciting innovations
to our divisions, which then take them to the next level.
What is your work with customers like?
In many cases, we are dealing with young start-ups operating at a faster pace and taking a different approach.
They know exactly what they want to achieve and what
their product should look like. It’s not just that decisions
have to be made much faster; they also expect us to comewith new and all-encompassing technological solutions.
In close collaboration with the customers, PMP concentrates on innovative technological solutions that will revolutionize the market of electromobility and mobility services. We understand the challenges that our customers
face and are working on forward-looking business models.
The reason customers find Bosch so attractive is thatpractically nobody else can offer a portfolio of comparable breadth, including aftermarket services. In electromobility, we are focusing on 50 customers, and we arealso serving ten providers of mobility services.

What is PMP’s contribution to tomorrow’s climatefriendly mobility?
More and more people want to be mobile, and traffic
volumes are steadily increasing. As our cities continue
to grow, we need new mobility concepts to complement
private car ownership, with a mix of different options
such as on-demand ride hailing or ride-sharing services.
Consumers should be able to choose the mix of modes oftransport that suits them best, and sustainability is also
increasingly a major concern. In response, many vehicles
are already banned from inner-city zones today. This situation brings two profound transformations: on the one
hand, it is establishing electric drives that are free of
local emissions as an alternative to the internal-combustion engine, and, on the other, our means of everyday
transport are changing. We are seeing a shift from singular mobility focusing on one means of transport to multimodal mobility with lots of new transport options. With
PMP, we are breaking new ground to make mobility technologies more efficient, sustainable, and attractive.
Together with our customers, we are working to makeautomated, electric, and connected driving a reality – formore effective climate action.

9
Climate

THE WAY FORWARD – WITH OUR PRODUCTS



Synfuels: fuels withpotential





H₂O

It is not possible to reach the climate targets with alternative drives alone: aircraft, ships, and trucks will continue to rely on internal-combustion engines for many
years to come. New synthetic fuels, referred to as synfuels, are generated exclusively using renewable energies
and can make a significant contribution to limiting global
warming. It is already possible today to run internal-combustion engines in a climate-neutral way using synfuels,
ideally completely substituting conventional fuels. Asidefrom automobiles, that means that it is not necessary to
retrofit vessels, aircraft, or to some extent freight transport – modes of transport that will primarily be driven
by internal-combustion engines
in the future. CO₂-neutral
combustion engines thatrun on synfuels are thus
a very promising path
toward emission-freemobility.

By 2050,
systematic useof synthetic fuels
could save up to
2.8 gigatons of
CO₂ worldwide.

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Synfuels

CO₂

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CO₂

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So what’s next?
Clear objectives, effective measures

At Bosch, we are quite clear about it: we want to makeour products even more sustainable – not just in theautomotive sector but throughout our product portfolio.
That is why we have set ourselves ambitious targets alsowith respect to our products. To that end, we will drill

down deeper in the analysis of our products in 2020 and
identify further potential for our products to make acontribution to global climate action. In addition, we will
make all our air travel climate neutral as of 2020 using
carbon offsets.

10
Bosch sustainability report 2019 | spotlights

EnergyWe are serious about it:
climate neutrality asof 2020
Global climate conferences, student demonstrations, and the calls of theUnited Nations all point to the same fact: rising CO₂ emissions are theglobal challenge of our times. To reduce them, clean sources of energy area decisive factor. For us, there is no doubt about it: we must act and do soquickly. Already in 2020, we are making our over 400 locations worldwide
carbon neutral. To achieve this, we are using four levers: energy efficiency,
new clean power, purchasing of green electricity, and carbon offsets.

For a long time, global warming was an abstract notion.
Water scarcity and extreme weather events are making it
tangible and visible. Tsunamis, hurricanes, and heatwaves speak clearly and demonstrate that global warming is having a wide-reaching impact on nature, society,and the economy.
The Paris Agreement placed the topic at the centerof public attention. It aims to limit global warming to
1.5 degrees Celsius, if possible, by 2030 – and, in any
event, to well below two degrees Celsius. “We will doeverything in our power to support this effort,” says
Urs Ruth.

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



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

Urs Ruth holds a PhD in physics and is a climatechange and energy resources expert at Bosch.
As a climatologist, he looks at the reasons,mechanisms, and effects of climate change,
analyzing them from a scientific viewpoint.

“We recognize our responsibility:
already in 2020, our production,
research, and administration will
be climate neutral worldwide.”
Dr. Urs Ruth, climate researcher at Bosch11
Energy                Reducing our carbon
footprint to zero
Energy is a central factor in the debate about effective
measures to mitigate climate change. “Climate change isbeing caused by a growing concentration of greenhousegases – first and foremost CO₂. The increased concentration levels are clearly attributable to humanity’s use of fossil resources,” the climate expert says. “To limit global
warming, we have to use energy efficiently and turn toclean energy sources – and do so as quickly as possible.”

To limit global warming, we have set ourselves a clear,but also highly ambitious, target: as of 2020, the more than
400 Bosch locations worldwide will be carbon neutral.
That is an ambitious goal. Yet with a clear road map andconsistent changes, we can get things moving.

At Bosch, we recognize our responsibility. After all, we
also consume energy: electrical power for the operationof manufacturing plant and machinery, thermal energy
for heating and air-conditioning, and fuels to operatefoundry furnaces.

Our path toclimate neutrality

1
2

Increasing energy efficiency
The efficient use of electricity and heat isfundamental to reducing CO₂ emissions.

Increasing the proportion of new clean
power
By concluding long-term procurement contracts, we contribute to new clean power facilities being built. We will also produce moreenergy from renewable sources ourselves.

Two billion euros:
Bosch’s investment incarbon neutrality by 2030.

3
4

Buying in more green electricity
We will considerably expand the volume ofgreen electricity we source from existing
plants.
Offsetting CO₂ emissions
We use carbon offsets, by which we specifically mean internationally accepted certifications such as the Gold Standard or the Verified Carbon Standard. However, in the future,
we intend to use them only where we cannot
avoid emissions.


For more information about climate neutrality
at Bosch, please refer to our factbook 2019.

12
Bosch sustainability report 2019 | spotlights



THE WAY FORWARD – WITH OUR PRODUCTS“Quartierstrom” project:
the future of energy supply?
Since September 2018, the Swiss town of Walenstadt has been trading
district power – the electrical energy it generates. Households producing solar power themselves sell any excess they generate directly totheir neighbors in the local electricity market. The idea behind this isfor electricity to be consumed primarily in the region where it is generated. The electricity is traded using blockchain technology – which the
Bosch IoT Lab largely developed.
When the fridge gets smart – hooking up a smart fridge to the district
power network illustrates how connected household
appliances can play an important role in sustainableenergy supply: the fridge communicates with thelocal electricity market and adapts its energy
consumption to current local conditions – forexample, the appliance preferentially uses
renewable sources of energy when they areavailable and affordable, or it can charge up abattery to store power for later use.

Blockchain
technologies
enable automatedelectricity
trading.

Find out more about theforward-looking district
power project.

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 13
EnergyTHE WAY FORWARD – AT OUR LOCATIONSAll energy consumption data at a
glance on the Energy Platform
Achieving transparency of energy consumption is the first step
toward efficiency. Our Energy Platform IoT solution records energyrelated consumption data, reports irregularities, and derives specificrecommendations for action. This way, it can help to increase energy
efficiency. The data recorded make it possible to monitor the consumption of each individual machine and control it in an efficient manner.

The Energy
Platform helps to
optimize energy
consumption.

Since 2016, the Energy Platform has been in use at our plant in Charleston,
United States. Meters, sensors, and production facilities are interconnected
and record heat, electricity, and compressed-air consumption data. Visualization of the data helps to analyze and optimize consumption. This way, theenergy coordinator quickly notices if a compressed-air system has sprung aleak – for example, if compressed air continues to be consumed after the system is switched off.

Discover the
potential ofconnected energy
management at
Bosch.

So what’s next?
Continuously enhancing quality –for maximum climate action

Our first step is clear: climate neutrality as of 2020.
But we won’t stop there: we are doubling efforts to drive
up the quality of our measures – after all, we want tocontribute to climate action as much as we can.

1
Saving 1.7 terawatt-hours
of energy by 2030 – thatis more than a fifth of ourcurrent annual consumption.

2

Up until 2030, we will rigorously optimize and refine the levers
1 energy efficiency and
2 new clean power – thereby making our contribution to
the energy transition:

Generating 400 gigawatt-hours
of energy from renewable sources
ourselves by 2030 – this corresponds to the output of a photovoltaic system the size of about
300 soccer fields.

14
Bosch sustainability report 2019 | spotlights

Water

Every drop counts:
how we help conservea valuable resource
Water is the basis of all life. At Bosch, too, we need this valuable resourcefor our daily work. That is why we consider it our responsibility to protect
water and promote its sparing and conscientious use – especially atcompany locations in regions exposed to water scarcity and by offering
innovative products.

Systematic action inregions with water scarcity
Whether as drinking water or for preparing food, as asource of energy, for hygiene, or as a raw material – water
is the basis of life for people, fauna, and flora. The World
Economic Forum classifies water crises among the greatest risks worldwide. A total of one-quarter of humanity iscurrently threatened by acute water shortages – and the
proportion is set to rise. As a result, this importantresource needs to be managed responsibly.
Current climate change scenarios and associated forecasts show that the risks related to water scarcity andinsufficient water quality will become more acute: by2050, global water demand is expected to grow by
between 20 and 30 percent. This is due in particular
to demand from industry and private households.

More information on theapproach and measures for  
the economic use of water
resources can be found in our   

factbook 2019.
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

Bosch, too, is dependent on water as a resource in daily
operations. We need it for our cooling systems, sanitaryfacilities, and as part of our technical processes. We
therefore bear a special responsibility for using water
sparingly. With this in mind, we focus our measures on
the regions where they are most beneficial for people andthe environment: namely, where there is an increased riskof water scarcity. A total of 61 of our sites are located inregions with water scarcity, including sites in India, theUnited States, and Mexico.

Rigorously reducing
water consumption
We have an ambitious goal: by 2025, we want to reduce
our absolute water withdrawal at the 61 sites in regionswith water scarcity by 25 percent. How can we achieve
this? In water-stressed regions, we already use recycledwater whenever possible. That means that water is reused
several times in the cycle. We will further expand thismeasure. In addition, our water coordinators regularly
check potential savings on-site as a basis for developing
site-specific measures. The way our Indian locations in
Jaipur and Ahmedabad are using rainwater is one exampleof this approach.

15
Water

THE WAY FORWARD – AT OUR LOCATIONS

Rainwater harvesting in
Jaipur and Ahmedabad
Our two Indian sites in Ahmedabad and Jaipur are located in regionswith severe water scarcity. In order to reduce water withdrawal by
25 percent over the next five years, both locations are evaluating
their water consumption with reference to more than 100 measuring
points, which allows them to derive targeted measures.
In Jaipur, consumption is mainly attributable to the sanitary facilities and the cooling system. The optimization of the cooling systemand the use of rainwater, together with other measures, have madeit possible to reduce water withdrawal by ten percent compared tothe previous year. To prevent rainwater from flowing away unused
during heavy monsoon rains, the Ahmedabad
location has built a water reservoir witha capacity of 18,000 cubic meters. A
total of 23 drainage shafts ensurethat rainwater is fed into thegroundwater – thus preventing
flooding and enriching the
groundwater table.

Each year,
the Bosch plant in
Ahmedabad feeds
around 81 million
liters of rainwater
into the groundwater.

“A total of 61 Bosch locations arelocated in regions with an increased
risk of water scarcity – this is where
we intend to take systematic action.”
Andreas Siegle, water expert at Bosch16
Bosch sustainability report 2019 | spotlights

THE WAY FORWARD – WITH OUR PRODUCTS

Saving water throughsmart irrigation
Even beyond the boundaries of our organization, we contribute tosaving water with innovative products and raise awareness for its
sustainable use.
On the Andalusian olive plantations in southern Spain, Bosch sensors on individual leaves constantly monitor the state of irrigationof the olive trees. The sensors measure the pressure change of thecell sap in the leaf to determine whether the tree has enough water.
Our smart irrigation systems help to optimize irrigation and thus
reduce water consumption. Plantation manager Jose Antonio Fernandez Angulo is very enthusiastic about the technical support:
The method has allowed him to lower thewater consumption on his plantations
by around 20 percent, while atthe same time ensuring theolive trees are optimallyirrigated.

The sensors
allow me to adjust theirrigation optimally and I
can make sure the trees get
exactly the rightamount of water.

Find out more about connected
agriculture at Bosch.




 
  
       17
Water

So what’s next?
Three levers toconserve water

To achieve our goal and significantly reduce water
withdrawal in regions with water scarcity, Bosch ismaking an annual budget of ten million euros available until 2025. Bosch locations in the affected
regions can submit their project proposals.
Based on the applications submitted for what werefer to as our “water budget,” we were able toidentify three levers that make a particularly highcontribution at our locations:Improve
circulation …
… to reuse thewater consumed



Mexicali, Mexico
By increasing the circulation of coolingwater in the cooling towers from three
to 150 cycles, it was possible to lower
annual water consumption by 14 percent.






1

2

3

We intend to continue tomake greater use of thesethree levers in the future
in order to further reducewater withdrawal at
our locations.



Improveprocesses …
… so that less wateris needed

Wuxi, China
A total of six individual measures led
to a 20 percent reduction in annual
water withdrawal and at the same time
to decreased use of process chemicals.

Userainwater …
… instead of fresh water

Jaipur, India
By using rainwater, it was possible tosave 3,500 cubic meters of fresh waterin 2019 alone.

18
Bosch sustainability report 2019 | spotlights

Urbanization

City of the future:living sustainably inan urban world
By 2050, roughly two-thirds of the global population will live in cities.
Urbanization is increasing and with it the challenges cities have to solve.
The growing population is fueling demand for natural resources.
Innovative ideas help to protect our environment and improve people’squality of life.

Products for theurban world
Just how important it is to protect our resources is underscored by Earth Overshoot Day, calculated each year by
the U.S. organization Global Footprint Network. It refers
to the day as of which humanity consumes more natural
resources than can be regenerated in the given period. In
2019, this was the case at the end of July already – andeach year, overshoot day is reached earlier than the year
before.
In view of growing conurbations and rising consumption,
the United Nations expects the global volume of waste to
double from just under two billion metric tons (2016) toaround four billion metric tons by 2050. One of the main
factors is the consumer behavior of rising middle classes,
which has a huge impact on the global consumption of
resources and the production of waste.

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
 


















  

  
 Every day, we use a large number of products that havean ecological footprint – either due to their manufacture,
their use, or at the end of their life. This also holds true
for the broad range of Bosch products. That is why weattach great importance to our goal of developing products that help to conserve natural resources – and welook at the entire product life cycle in this regard. To thisend, we conduct life cycle analyses for all our key products. By assessing the environmental impact from thetime our products are launched on the market through totheir disposal, we identify potential for improvement.
This has already allowed us to identify one key topic:
we have sharpened our focus on the recyclability of thematerials we use.

We are pursuing the principleof a circular economy: moving
away from a one-way systemand toward a closed loop.

19Urbanization

THE WAY FORWARD – AT OUR LOCATIONSClear conditions:reconditioning hazardous waste
In order to reduce our hazardous waste, we use various reconditioning methods. This way, we have been able to cut by half theshare of hazardous waste from emulsions such as cooling lubricants. To reduce water-based solutions or mixtures with oils, we
use vacuum distillation. This involves heating until the water evaporates. All substances with a higher boiling point, such asoils, are left over as residue. The rising vapors arethus virtually free of pollutants. This method
thereby separates substances from the water,which can subsequently be reused.

Less waste
through recycling

We reduce
our hazardous
waste by up to
50 percent bymeans of efficientreconditioning.

To completely reduce the amount of waste disposed of in landfills – that is the aim of our “zerowaste to landfill” campaign. Waste that ends up in alandfill cannot be recycled anymore, and valuable
resources are hence lost. We want to ensure that the materials
and substances we use can be reused again later. Our plant inCampinas, Brazil, demonstrates how that can be done: the waste
produced by the plant is separated such that it can be recycled
subsequently. As a result, it is not necessary to dispose of it in alandfill. Since 2017, the plant has not disposed of waste in landfills
thanks to this method – and a total of 4,500 metric tons of waste
have been recycled over the past two years.

Focus on hazardous waste
We are placing a primary focus on hazardous waste,
which is generated in our processes above all as coolinglubricants, washing water, oils, and fuels. We are particularly keen to reduce them because it would allow us to dosomething that would vastly benefit society and the environment.


For more information about
hazardous waste management, please refer to ourfactbook 2019.

20
Bosch sustainability report 2019 | spotlights

HOW IT WORKS – WITH OUR PRODUCTS

Lease concepts for acircular economy
We create services and products that make a contribution to a circular economy. Currently, Bosch subsidiary BSH Hausgeräte GmbHis testing the Blue Movement leasing service in the Netherlands,
which provides an easy way to lease resource-efficient fridges, washing machines, and dryers. A win-win situation: customers have different subscription options to choose from, which also include
repairs for the appliances, and the appliances are returned to us
after the end of the lease term to recondition them for reuse or
recycle them at the end of their life.
Another approach is being trialed by the pilot project “Papillon” in
Belgium – also by BSH. Here the focus is not just on recycling but
also on combating energy poverty: resource-efficient appliances arerented out to underprivileged households in collaboration with an
NGO. The more efficient appliances lower the households’ energy
and water bills.

Find out more about
the Papillon rental
project in Belgium.

“At the end of their life, theproducts find their way back to us
instead of simply ending up in the
garbage.”
Volker Korten, in charge of environmental protection,
resources and occupational health and safety at BSH



 

           21Urbanization

Closed loop instead ofone-way system
In our actions, we follow the guiding principle of a closedloop or circular economy. To reduce the volume of waste,
we want to have a materials cycle – wherever this canbe done. This would help us to conserve valuable
resources and at the same time reduce waste.
RecoveredThis way, we want to transition away frommaterials
traditional value creation based on a linear
production-use-disposal progression andmove toward a closed-loop cycle in thelong term:Production
Purchase

Reuse

Recycling

Extending the
product life cycle

Use

ReconditioningReturn



2019

2020

2019

20%

Washing water
We want to reduce its use
in 2020 by as much as
20 percent.

~50%

Cooling lubricants
We want to cut their use byanother ten percent in 2020.

10%

We want to continue reducing
our hazardous waste in the future
as well. To this end, we haveidentified potential that we willaddress:~50%

So what’s next?
Continuously reducing waste

2020

22
Bosch sustainability report 2019 | spotlights

Globalization

Tomorrow’s world:
connected digitally,
managed responsibly
With the Internet, the world has grown even closer together and has
become a global marketplace. At Bosch, too, we see how the advance ofdigitization is changing markets and further increasing the international
division of labor. The opportunities of tomorrow lie in partnerships,
knowledge sharing, and the acceptance of responsibility by individuals.

Assuming responsibility
worldwide
By connecting markets, globalization is increasing thepressure of competition. More intensive use is hence
being made of the possibilities offered by the international
division of labor. This poses a great challenge when it
comes to ensuring transparency in the supply chain andthat human rights are respected. At Bosch, we maintainsupply relationships in 50 countries – and for each one ouraim is to ensure compliance with sustainability standards.


  






 

 












 










  






 

   



 
 


For more information about
our responsibility in the
supply chain, please refer toour factbook 2019.

With roughly 440 subsidiaries and regional companies
around the globe and 398,200 associates, we have a
responsibility to society and the environment that knows
no borders. To achieve our aim, we want to improve ourown and our suppliers’ sustainability performance. Forus, responsibility does not end at the factory gate – itextends across the entire supply chain.
All our actions are based on our “Basic principles ofsocial responsibility at Bosch.” In these, we commit torespecting human rights, equal opportunities, and fairand safe working conditions – and we expect our business partners in the entire supply chain to do the same.
Our Code of Conduct for Business Partners sets out
social and environmental requirements. As a founding
member of value balancing alliance e. V., we endeavor to
make companies’ environmental and social contributions
measurable and comparable.

23
Globalization

Strengthening trust:
Digital Trust ForumThe Internet of things (IoT) is changing mobility fundamentally, making homes smarter and factories more productive. It has an influence on how we live, work, andmove. We are working to build trust in digital products.
With this in mind, we established the Digital Trust Forum:
together with leading international associations and organizations, we want to encourage open dialogue amongexperts. The main focus of the first gathering in 2019 was
the question of how to build and safeguard trust in digitalsystems. Back in 2015, we put our IoT Principles down in
writing. The principles for our IoT business serve to build
digital trust among our customers and partners. In addition, with our code of ethics for artificial intelligence (AI),
we issued company guidelines in early 2020 governing
the use of AI. The code of ethics for AI is based on the following maxim: humans should be the ultimate arbiter of
any AI-based decisions.

“The aim of the Digital Trust Forum is to initiate
open dialogue among experts to discuss thetrust-related issues raised by the Internet.”
Dr. Michael Bolle, member of the board of management, chief digital officer /chief technology officer

In brief:
the guidelines in the code of
ethics for AI
All Bosch AI products should reflect our“Invented for life” ethos, which combines aquest for innovation with a sense of social
responsibility.
AI decisions that affect people should not
be made without a human arbiter. Instead,AI should be a tool for people.
We want to develop safe, robust, andexplainable AI products.
Trust is one of our company’s fundamental
values. We want to develop trustworthy AI
products.
When developing AI products, we observe
legal requirements and orient to ethicalprinciples.

 

 

        






24
Bosch sustainability report 2019 | spotlights

Connected actions
for a connected world

At Bosch, responsibility
does not end at thefactory gate: we
consider the supply
chain end to end.

Globalization is accompanied by digital transformation.
We clearly see the opportunities that this development
offers and want to play an active role in shaping it. Morethan 30,000 software experts at Bosch around the globe
work each day to develop new solutions for a connectedworld. Take for instance driving, industry, or living applications – today we connect more than ten million devices
from various manufacturers using our open-source BoschIoT Suite.

THE WAY FORWARD – AT OUR LOCATIONSReducing carbon and costswith digital supply chains
Digital supply chains are becoming an ever greater competitive
advantage in the race to quickly fulfill personalized customer wishes in a connected world. At the same time, they offer key cost andefficiency benefits – for example, by making it possible to better
monitor and link data from various functions within purchasing andtransport management.
We are working together with our suppliers todigitize the receipt of incoming goods at our
locations end to end. Another goal for the
future is to enable them to view our manufacturing needs – around the world andin real time. This way, we can leverage
artificial intelligence to identify any
bottle­necks at an early stage, optimize
transport networks, and reduce CO₂
emissions.

By 2021,
we want to use
cloud and platform
solutions to handle
more than 85
percent of our global
purchasing
volume.

25
Globalization

THE WAY FORWARD – WITH OUR PRODUCTS



Changing the world
through IoT
Every year we bring together connected technologies
experts from around the world at Bosch ConnectedWorld, one of the largest international industry conferences on the Internet of things. Some 5,000 executives,
decision makers, digital transformers, innovators, developers, entrepreneurs, and IoT enthusiasts from different
industries come together for two days to share theirknowledge and develop new ideas.
At the hackathon, a three-day challenge, developers team
up to produce innovative solutions. The agenda in 2019
for the first time also included a social impact challenge:
five teams sought ways to help four nongovernmentalorganizations and the UN World Food Programme toovercome social and environmental challenges – fromalleviating hunger in Africa to providing access to cleanwater and addressing reforestation in Indonesia. After
30 hours, the teams presented their impressive results.
The winning team, Insectus, looked at how to breed highprotein insects and came up with a sensor-based solution for measuring temperature, CO₂ levels, and humidity
in the incubator.



Hacking for a good cause – find out more
about the Social Impact Challenge at Bosch
ConnectedWorld 2019.

So what’s next?
In shape for the future
working world

Our approach to new technologies is aligned with our
corporate social responsibility. We want to design tomorrow’s factories – and involve our associates in this mission
to prepare them for work in the future. We are therefore
planning a broad-based training program with the aim ofgetting almost 20,000 associates in shape for artificial
intelligence over the next two years.


 

 




  
  

We are getting
20,000 associates
in shape for
artificial
intelligence.

26
Bosch sustainability report 2019 | spotlights

HealthFocusing on the individual:
united for healthand safety
As a company with global operations, we bear a special responsibility
for our associates and society. This naturally includes health andsafety – both within our company and beyond. Our goal is to promote
people’s health in the long term and contribute to safe working andliving environments.

Worldwide, Bosch employs some 398,200 associates –and promoting their health is a fixed element of ourcorporate culture. Both associates and the company havea joint responsibility in this respect. Important elementsin this regard include a wide range of health services
around the world and raising associates’ awareness forsafety in the workplace.
Our occupational health and safety management covers
a broad spectrum of topics – from preventive medicalcare, physical and mental fitness, and mental healththrough to workplace design and tips for a healthy diet.
Back in 1917, we were one of the first employers in Germany to introduce in-house social services. In order tofurther develop our activities on mental health, we are
currently conducting three research projects together with
the University of Ulm. One focus is on the investigation of
psychological stress in start-up culture.

   



 

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






 












   




  








 
 



For more information aboutoccupational health andsafety, please refer to ourfactbook 2019.

Six principles for more safety
With six clear principles, our Safety Basics initiative
forms the foundation for a culture of safety at Bosch.
They are intended to support associates and executives to look out for each other and avoid accidents intheir daily work:

1

Safety is the basis for everything we do

2

As leaders, we care about your safety3

We ensure a safe work environment for all

4

We take care for each other’s safety

5

We speak openly about safety6

We have zero tolerance for negligence

We use a variety of communication measures torepeatedly draw attention to our principles because
they lay the foundation for our daily activities.

27
HealthResolute goal:
preventing accidents
at work   
  

  



We take our responsibility seriously: hazards for our
associates must be reduced to the greatest extent possible. We are pursuing an ambitious goal in this regard: ouraim is to lower the accident rate at Bosch to 1.7 accidents
per one million hours worked by the end of 2020. As weadvance toward our goal, it is becoming clear that ourefforts over the past years are paying off.

2011

2012

2013

2014

2015

2.7

3.2

3.1

3.6

4.2

4.0
2010

2016

2017

2018

1.9

2009

2.2

2008

Target: 1.7

2.3

2007

4.9

4.7

5.8

6.9

Development of accident rates
Number of work accidents per 1 million hours worked



2019

2020

A key to our success is recognizing dangerous situations
before an accident occurs. So in order to prevent accidents atwork, we focus on training and awareness-raising measures.
We draw on innovative concepts and new technologies to provide
our associates with attractive and varied offers.

28
Bosch sustainability report 2019 | spotlights

THE WAY FORWARD – AT OUR LOCATIONSHeadset on and good to go –safety training 4.0
Water on the floor, defective cables, and misplaced fire extin­
guishers – Bosch associates learn what to do in such critical situations in our virtual safety training. Wearing an augmented reality
headset allows participants to extend their actual perception throughthe application of technology. For instance, users can enter training
rooms, including offices and production areas, where they can train
their safety-related behavior by performing a variety of tasks. Withthe virtual exercises, we want to combine occupational safety with
fun and curiosity and thus practice routine handling of critical situations in daily work.
The safety training course developed in cooperation with Heilbronn
University has been run at all locations of the Chassis Systems Control
division since April 2019.

“With augmented reality and fun elements, we wantto provide an occupational safety experience andthereby make it something positive.”Thomas Ritzenfeldt, occupational safety and environmental
protection in the Chassis Systems Control division29
HealthTHE WAY FORWARD – WITH OUR PRODUCTSOn the road with artificial
intelligence
We are also committed to health and safety outside our factory
gates: with our products, we want to improve people’s quality of life
and increase road safety. Day after day, we pursue our vision of
accident-free mobility. Since many traffic accidents are caused byhuman actions, here, too, we are focusing on technical developments such as automated driving. In this way, we want to herald a
new and, above all, safe era of mobility. With our new camera for
automated driving, we are taking another important step forward:
thanks to artificial intelligence, objects are detected even morereliably. The camera thus improves tried-and-tested driver assistance systems and extends their application range.

Learn more about AI for object
recognition.

How explosions can save lives
With more and more electric cars on the road, many drivers are increasingly uncertain what
they should do or not do in the event of a collision. And rescue crews also face new challenges. The bottom line is that, just like conventional cars, electric vehicles also needspecific safety measures. We have developed the “Pyrofuse” system to eliminate therisk of electric shock after an accident. For example, special microchips ensure thatthe vehicle’s power is switched off within a fraction of a second – by using tiny
explosions that blow up parts of the connection to the battery. This way, the rescue services can work more safely, and vehicle occupants are protected from fireand electric shocks.

Pyrofusequickly and reliably
shuts down thecircuit in the eventthat an electric car
is involved in an
accident.



So what’s next?
Safely toward the future
Recognizing hazards early on and correctly
assessing them is important for the continuous
development of occupational safety. Only in thisway can appropriate countermeasures be introduced and accidents prevented. As part of our
Safety Basics initiative, we are intensifying ourefforts to address the topic in 2020. Together with

our associates, we want to promote dialogue on
the need for safety precautions in everyday work.
In training courses, we systematically draw attention to the topic and engage in dialogue on what
to do in an emergency and on dealing with service
providers. The focal point is on each individual’s
personal responsibility.

30
Bosch sustainability report 2019 | spotlights

Bosch at a glance

Bosch at a glance
The Bosch Group is a leading global supplier of technology andservices. It employs roughly 398,200 associates worldwide.
It comprises Robert Bosch GmbH and its roughly 440 subsidiaries
and regional companies in some 60 countries. In 2019, the company
generated sales revenue of 77.7 billion euros.
Its operations are divided into four business sectors:
Mobility Solutions, Industrial Technology, Consumer
Goods, and Energy and Building Technology. The focus
is on the “Invented for life” ethos: Bosch improves qualityof life worldwide with products and services that are
innovative and spark enthusiasm. Bosch’s strategic objective is to create solutions for a connected world. As aleading IoT company and with its expertise in sensor
technology, software, and services, Bosch offers groundbreaking inspiration for smart homes, smart cities, connected mobility, and connected manufacturing. The basis
for the company’s future growth is its innovative strength.
Bosch employs some 72,600 associates in research anddevelopment at 125 locations across the globe.

A total of 92 percent of the share capital of Robert BoschGmbH is held by Robert Bosch Stiftung GmbH, a chari­table foundation. The majority of voting rights are held byRobert Bosch Industrietreuhand KG, an industrial trust.
The entrepreneurial ownership functions are carried out
by the trust. The remaining shares are held by the Boschfamily and by Robert Bosch GmbH.

The company ownership structure secures the BoschGroup’s financial independence and allows the company
to plan for the long term and make up-front investments
in its future.

For further information on
Robert Bosch Stiftung andits projects, visit
www.bosch-stiftung.de/en.

Bosch Group2019 sales revenue by business sector
46.8 billion euros (60%)

17.8 billion euros (23%)

Mobility Solutions

Consumer Goods

77.7

billion euros

7.5 billion euros (10%)
Industrial Technology

5.6 billion euros (7%)
Energy and Building Technology31

Bosch at a glance | Publication details

Publication details

Publication details
Published by:Robert Bosch GmbH
Corporate Communicationsand Governmental Affairs
Postfach 10 60 50
70049 Stuttgart
Germany
Phone +49 711 811-0

Corporate Communications andGovernmental Affairs (C/CG)
Executive Vice President:
Prof. Christof Ehrhart
Health, Safety, Environmental
and Fire Protection as well as
Sustainability (C/HSE)
Head: Torsten Kallweit
Sustainability and
Ideas Lab (C/HSE2)
Head: Annette Wagner
annette.wagner@de.bosch.com

Concept, editing, and text
akzente kommunikation und beratung
GmbH, Munich
Print
Elanders GmbH, Waiblingen
Photography credits:
Bosch holds all image rights, withthe following exceptions:p. 12 Wasser- und Elektrizitätswerk
Walenstadt (WEW); Gian Vaitl;
p. 15 Brooke Campbell/unsplash;
Wolfgang Hasselmann/unsplash;p. 19 bee-naturalles/unsplash.

For further information about the company and sustainability at Bosch, visit sustainability.bosch.com.

Robert Bosch GmbH
Postfach 10 60 50
70049 Stuttgart
Germany
www.bosch.com