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ZF Sustainability Report 2017

Dear readers,

While ZF had another successful year in terms of business achievements, strategic investments and attracting new employees, we also progressed as one company in terms of sustainability. As the integration of TRW goes beyond matching technology and markets, the complementing sustainability acitivities also strengthen our company to be ready for the future.

Global megatrends such as soaring urbanization, advancing climate change or an increasing scarcity of resources are for ZF both a challenge and an opportunity. As a signatory of the United Nations Global Compact, we are committed to address these challenges and work on sustainable solutions. While we continue to implement our proven strategy, our Vision Zero shows a clear roadmap for a world with zero accidents and zero emissions.

ZF’s unique answer to these global challenges is summarized in the concept: see. think. act. But our solutions with intelligent interaction of all components and systems do not only help vehicles to increase their safety. ZF’s technological profile also offers the right tools to help make driving more sustainable in the future. In 2017, we took a big leap in building our Vision Zero Ecosystem: a close network of strategic cooperations. Together with strong partners we are able to increase the speed of research and development as well as seizing market opportunities.

Nevertheless, we must continue to review tried and tested standards and processes for sustainability. Last year, we focused on aligning key figures, targets and management approaches throughout the Group, following the “best of both” approach. Building on a comprehensive validation of our materiality analysis in 2018, we will review our action areas and set ourselves ambitious and measurable targets (Sustainability Report page 9). To think the future today and at the same time assume responsibility for the environment and society – that is what acting sustainably means for us.

Yours sincerely,

Wolf-Henning Scheider

Chief Executive Officer of ZF Friedrichshafen AG

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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.