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ZF Sustainability Report 2018

Dear readers,

The entire automotive industry is facing a fundamental transition. Carmakers and their supply chains are being challenged, balancing multiple technological trends like electric mobility or the increasing autonomy and connectivity of vehicles. At the same time, we need to look after the people being impacted by these trends by upholding and promoting human rights in the supply chain and qualifying our employees for future tasks.

As the world is rapidly developing, and quicker than many observers anticipated, we adjusted our strategy towards “Next Generation Mobility”: with a strengthened focus on our core technology domains – Automated Driving, Vehicle Motion Control, Integrated Safety and Electric Mobility – as well as a flexible, agile and open business culture.

At the same time, we are determined to strengthen our sustainability performance. Therefore, during the summer of 2018, a profound materiality analysis served as the basis for not just updating our Sustainability Report but for overhauling our sustainability program.

More strategic steps were resolved, like stepping up our supply chain management and increasing our decarbonization efforts to contribute towards a low carbon economy. In a first step, the Board of Management signed a new EHS policy and the EHS management system underwent major revision. Also, several departments are implementing new reporting tools to provide smarter data and improve target tracking.

Since 2012, ZF has been a signatory to the United Nations Global Compact, promoting its ten principles in the areas of human rights, labour standards, environmental protection and fighting corruption. In the light of major challenges facing us and our industry, we are positioning ourselves to answer them in an agile and decisive manner. With this report we wish to inform you of our progress; we welcome your feedback and engagement.

Yours sincerely,

Wolf-Henning Scheider

Chief Executive Officer

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Table of contents

General

To think the future today and at the same time assume responsibility for environment and society – that is what acting sustainability means for us.

Economic

As a major partner in all the regions that ZF operates in, we know that a company can only achieve business success in an intact economic environment.

Environment

Conserving and protecting natural resources is the fundamental principle of our environmental activities. They include climate protection, reducing the impact of production and designing eco-friendlier products.

Social

ZF is committed to its employees and society as a whole, building on long-term partnerships and a strong commitment to education and culture.

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