· Environmental protection and resource conservation account for one-third of sales

· Combating climate change is also a matter of trust

Stuttgart, March 25, 2009. Business must do even more for climate protection, even in difficult times. This was the call made by Franz Fehrenbach, chairman of the Bosch board of management, at the Baden-Württemberg sustainability congress held in Stuttgart on March 25, 2009. The acute economic and financial crisis must not, he said, be allowed to function as a pretext for slackening efforts to combat climate change. In fact, he believed that the "green economy" also offered opportunities for overcoming the crisis. According to Fehrenbach, every third euro of sales generated by Bosch now came from products that conserve resources and/or protect the environment. In 2008, the Bosch Group achieved sales of some 45 billion euros.

"Climate protection is also a matter of trust", the Bosch CEO said, pointing out that especially German industry had set itself the objective of protecting the climate. Now, however, it was imperative that these issues should not be put onto the back burner simply because of the current severe economic problems – "down there at the bottom of the agenda along with all the other items to be set aside for the time being." In Fehrenbach's view, this would be a breach of trust. The continuing financial crisis had, he said, meant that business had already lost not only money, but also a great deal of trust. But by pursuing climate protection more earnestly and rigorously than before, he felt it could profit in terms of finance and trust.

Develop the electric car, but also save energy here and now
It was not only studies forecasting considerable growth for environmental technology that Fehrenbach quoted to substantiate the economic opportunities offered by ecology. He also pointed out that emissions and energy-consumption standards were becoming stricter the world over – also in the emerging markets. "This ecological globalization works to our benefit," the Bosch CEO said. The examples he gave included not only efficient vehicle drive systems, but also systems for utilizing renewable energies, from gearboxes for wind turbines, to ground-source heat pumps and solar collectors, to photovoltaics. With this broad range of products, Bosch already generated sales of roughly one billion euros in 2008.

And in the future, said Fehrenbach, it was self-evident for the company that it would "provide technological answers to ecological questions." More than 40 percent of the company's research and development budget, which for 2008 amounted to 3.9 billion euros, goes into products that protect the environment and conserve resources. One especially important factor here is the long-term nature of its innovation policy. "This is also the only way we can make a success of the electric vehicle – which will come later rather than sooner," Fehrenbach said. But he also urged that opportunities for saving energy here and now should be used – whether with condensing boilers in the home or with the start-stop system in the car.

Bosch plants to emit 20 percent less CO2 by 2020
According to Fehrenbach, the value of companies' contribution to climate protection was decided at the sales counter. Since 1990, he pointed out, the amount of energy consumed by household appliances had fallen significantly, yet the average age of these appliances in Europe was still more than ten years. If all these old appliances were replaced with new ones, this would cut carbon dioxide emissions by 6 percent of the amount to which the EU committed itself in Kyoto. "There are potential savings to be made in all our business sectors," Fehrenbach said, "but we can only realize these savings if we convince each individual consumer that it is worth paying more for an appliance that results in lower energy costs."

Bosch is also redoubling its energy-saving efforts within the company itself. The new Chinese headquarters in Shanghai, for example, will cover half of its heating and cooling requirements with ground-source heat pumps. Photovoltaics arrays have already been installed at German locations such as Murrhardt or Reutlingen. By 2020, Bosch aims to cut the CO2 emissions of its plants by at least 20 percent from their 2007 level. "This is not simply an empty promise for the future," Fehrenbach said. "Each year, we monitor the progress we make toward this target."

For Bosch, sustainable business management includes responsibility for associates and society. As Fehrenbach emphasized, even in economically difficult times, the company would continue its long-term efforts to promote young talent – apprentices as well as trainees and postgraduates – at their present levels, exactly as planned. Bosch offers more than 100 part-time work variants to promote work-life balance. It is not only with intensified personnel marketing that the company counters the lack of qualified specialists. As a founding member of "Wissensfabrik Deutschland" (Knowledge Factory) Bosch has already entered into more than 50 educational partnerships with schools and kindergartens. "This is a long-term strategy to secure the future of our locations," said Fehrenbach, who brought his presentation back to climate protection with the following question: "If the engineers and scientists of the future cannot meet our ambitious targets for cutting carbon dioxide emissions in the decades ahead, then who will?"

Presentation at the sustainability congress

The Bosch Group is a leading global supplier of technology and services. According to preliminary figures, some 270,000 associates generated sales of roughly 38 billion euros in the areas of automotive and industrial technology, consumer goods, and building technology in fiscal 2009. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Each year, Bosch spends more than 3.5 billion euros for research and development, and applies for over 3,000 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial. The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH. Additional information can be accessed at www.bosch.com.

PI6641 - March 25, 2009