ENG: Green Controlling Award for „CO2 neutralization of the Bosch Group in 2020“
Stuttgart, 24.09.2020- The Green Controlling Award 2020 of the Péter Horváth Foundation in cooperation with the ICV International Association of Controllers goes to Robert Bosch GmbH for the project "CO2 neutralization of the Bosch Group in 2020".
By the end of 2020, Bosch will be the first global industrial company with more than 400 locations to be CO₂-neutral. An interdisciplinary team of controllers, engineers, energy and air conditioning experts has developed and started an ambitious program with various levers. In order to make CO₂ neutrality possible, Bosch is investing in the energy efficiency of its own locations in addition to the renewable energy supply. By 2030, the company intends to gradually improve the ecological quality of the CO₂ neutrality by increasing these two measures. As a short-term effective lever, Bosch also purchases green electricity and fully offsets unavoidable CO₂ emissions through selected climate protection measures.
Torsten Kallweit, Head of Environment and Sustainability at Robert Bosch GmbH, received the Green Controlling Award 2020, endowed with 10,000 EUR, on September 23 at the “Stuttgart Controlling & Management Forum” from Péter Horváth and the ICV Chairman Heimo Losbichler. Kallweit presented the solution to the 500 participants on the online forum.
"Lighthouse project" and "Exemplary example"
The prestigious award has been presented annually since 2011 for the “most innovative and effective green controlling solution”. As business partners of management, controllers are called upon to actively support the implementation of sustainability goals. Péter Horváth describes the excellent solution as a “lighthouse project”: “The fact that Bosch wants to be climate-neutral with its more than 400 locations by the end of 2020 is not a mere announcement. With the active participation of the controlling department a detailed implementation plan in the sense of 'Plan, Do, Check, Act' is fulfilled in a targeted manner."
“The focus of controllers, managers and the media today is understandably on coping with the corona crisis. However, this should not hide the fact that, in the long term, the climate crisis is the greater threat”, explains Heimo Losbichler. “Controllers are of great importance in the target balance between economy and ecology. The Bosch Group's project to become CO2-neutral is a prime example of how both target variables can be pursued and managed."
After 2016 this is the second time that Robert Bosch GmbH has been awarded the prestigious Green Controlling Award. From 2007 to 2018, the Bosch Group almost doubled in terms of sales and employees - with the company's absolute CO₂ emissions remaining almost constant. The increase in CO₂ emissions associated with growth was offset by an increase in energy efficiency. The 2016 award-winning green controlling solution, “Development of a system for strategic and operational environmental controlling”, contributed to this. At that time, energy-saving measures were managed with the help of corresponding relative key figures. From 2007 to 2018, more than 30% CO₂ per million euros in value added was saved. “That was a huge step. But with that we were not able to reduce absolute emissions”, explains Torsten Kallweit.
Energy efficiency and economy
During the development of the now award-winning project “CO2 neutralization of the Bosch Group in 2020”, the interdisciplinary team had to answer key questions: “How much energy can we save under economic conditions?”, “How much regenerative energy can we generate ourselves? ”,“ Where and at what price is green electricity available worldwide?” and “Is there a business case for climate neutrality?”. It showed that Bosch can increase its energy efficiency by around 20% - and at the same time meets the company's profitability criteria. In order to leverage this efficiency potential, investments of EUR 1 billion are necessary by 2030. This can save around EUR 1 billion in energy costs over the same period. This business case convinced the management.
In order to ensure efficiency and acceptance, existing processes and reporting lines are used to implement the four levers. Each business area receives an annual absolute energy saving target, the achievement of which is regularly checked. In order to manage the CO₂ neutral position, a controlling cycle was established according to "Plan, Do, Check, Act".
The implementation of the measures is checked by monthly reporting in a central database at the location level. Each location presents e.g. the amount of energy consumed in the monthly period and proves through measured values and invoices that these come from renewable self-sufficiency or the purchase of green electricity or gas. CO₂ emissions from incineration processes are calculated in a standardized way and offset by calling up compensation certificates from the global framework agreement. The monthly reports from the locations are checked in a two-stage validation process by the business unit and regional organization. The management from the Group to location level receive monthly information on the status of target achievement and initiate measures if necessary. Since the results of the audit are also incorporated into the Group's management report, the process, data, evidence and target achievement are checked by an auditor in close coordination with the controlling and finance departments.
Role of controllers in conception, implementation and application
“Such an ambitious, complex program was only possible thanks to intensive partnership in an interdisciplinary team of controllers, engineers, energy and climate experts,” explains Torsten Kallweit. “It was only the interplay of the various expertise and experience as well as the willingness to learn from each other that made the conception, implementation and application possible.” During the conception phase, the controllers brought their expertise, particularly in defining the management parameters and the business cases for the neutral position - from the evaluation of individual projects to the overall concept. The interdisciplinary team supported the implementation with the controllers. Ultimately, the application benefits from controller experience, for example with the controlling cycle and the mapping of the “Plan, Do, Check, Act” process.
Bosch was able to reduce CO₂ emissions (scope 1 & 2) from 3.26 million to 1.94 million tons in 2019. At the annual press conference in April 2020, the company announced that it was already 70% CO₂-neutral and announced that it would be CO₂-neutral by the end of the year. You can find further information on CO₂ neutrality at: https://www.bosch.com/de/unterneh- men / sustainability /
The Green Controlling Award
Controllers as business partners of management are required to actively support the implementation of sustainability goals. To encourage controlling to deal with the “green challenge” the Péter Horváth Foundation has presented the award for “most innovative and effective green controlling solution” every year since 2011 in cooperation with the ICV International Association of Controllers. This is intended to make an exemplary contribution to the design and management of ecological strategies, programs, projects and measures in companies and public institutions. The Green Controlling Award is endowed with 10,000 euros.
Winners: Deutsche Post DHL „Carbon Accounting & Controlling“ (2011), Hansgrohe SE „Green Controlling – Green Profit – Green Future“ (2012), Volkswagen AG „Think Blue. Factory. Environmental Controlling“ (2013), Flughafen Stuttgart GmbH „fairport Controlling“ (2013), Takata AG „Maximize innovation to minimize environmental impact“ (2014), STABILO International GmbH “Controlling as a Business Partner for Sustainable Corporate Management“ (2014), Deutsche Telekom AG “Green controlling for group-wide transparence“ (2015), VAUDE Sport GmbH & Co. KG “Green controlling integrated in the corporate management process“ (2015), Voith GmbH „ Transparency takes care of „Competitive Spirit“” (2015), Robert Bosch GmbH “Development of a system for strategic and operational environmental controlling“ (2016) und DATEV eG “Sustainability check - management tool for embedding sustainability in corporate management“ (2016), PORSCHE AG „ Business management of CO2 target achievement at Porsche“ (2017), AIDA Cruises „Green Cruising“ (2018), VERBUND AG „Green Finance“ (2019).
The ICV supports its members and the entire controlling community with experience in this area. The ICV expert work group “Green Controlling for Responsible Business” has focused on this area for over ten years.
The ICV (International Association of Controllers) has in Germany, Austria, Switzerland, Poland and 12 other countries in Central and Eastern Europe around 6,000 members active in practical controlling. The key objective of the ICV controlling philosophy is reaching permanent economic success. With its honorary chairman Dr. Albrecht Deyhle the Association, founded in 1975, has shaped the controlling in German speaking countries placed and influenced. The ICV merges controllers, CFOs, managers and scientists and it is strictly oriented on its members’ benefit. Experience, communication and being focused on future-oriented trends are foundations of the ICV. The ICV combines practical experience with the latest research results and prepares its knowledge for practical implementation. The ICV makes personal contribution to the success of its members and to the sustainable performance of companies. Prof. Dr. Heimo Losbichler, FH Steyr, is the Chairman of the ICV, Vice Chairman of the ICV is Matthias von Daacke, BLANCO GmbH & Co. KG.
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