ZF CVCS Reports on Sustainability Performance, Highlights Reduction in Emissions and Zero Liquid Discharge Achievement for FY 2025-26

ZF CVCS Reports on Sustainability Performance, Highlights Reduction in Emissions and Zero Liquid Discharge Achievement for FY 2025-26​

ZF Commercial Vehicle Control Systems India Limited (ZF CVCS) has released its Business Responsibility and Sustainability Report for the Financial Year 2025-26. The report details the company's environmental, social, and governance (ESG) performance across various operational aspects, alongside a limited assurance statement provided by SGS India Private Limited.

The report provides comprehensive insights into ZF CVCS’s commitment to sustainable manufacturing, stakeholder engagement, and workforce welfare within the commercial vehicle solutions sector.

Operational Scope and Business Activities​

ZF CVCS is involved in the manufacturing of automotive components and spares, contributing 100% to its total turnover from this key business activity. The company maintains a significant operational footprint, with 6 manufacturing units across India and a total of 11 locations including offices and warehouses. These operations span multiple states, operating nationally across 26 states and four union territories.

The business serves both domestic and international markets, with exports constituting 36.61% of the entity's turnover. The company caters to diverse client segments, including Automotive Original Equipment Manufacturers (OEMs), distributors, government agencies, and retailers.

Workforce Details and Labor Practices​

As of the end of FY 2025-26, ZF CVCS employs 1,999 permanent employees and 1,365 workers across all facilities. The workforce consists of 80% male and 20% female employees, while nearly 91% of the total workers are male.

The company maintains a strong focus on employee well-being and safety:

• Safety: For employees, ZF CVCS recorded zero Lost Time Injury Frequency Rate (LTIFR) and zero recordable work-related injuries in FY 2025-26. Worker LTIFR was 0.28, showing a reduction of over 50% from the previous year's rate of 0.64.
• Welfare: The company incurred 0.41% of total revenue on well-being measures for employees and workers in FY 2025-26, demonstrating commitment to its workforce.
• Benefits: Both permanent and non-permanent employees and workers are covered by PF (Provident Fund) policies, with both categories showing 100% coverage for PF in FY 2025-26.

The company also emphasizes the empowerment of women within its senior ranks: Key Management Personnel (KMPs) include 2 female members, representing 66.67%, while the Board of Directors has two female members, accounting for 25.00%.

Environmental Stewardship and Resource Efficiency​

ZF CVCS demonstrates a robust commitment to environmental protection, prioritizing resource management across all operations.

Energy and Emissions:
The company is targeting zero carbon neutrality by 2040 and aims to use 100% renewable energy by 2026. Significant environmental achievements include:

• A 200 kWp rooftop solar system installed at the Lucknow facility, which helps reduce grid dependency and increases renewable energy share (over 40% in peak months).
• The company achieved a decrease in Scope 1 & Scope 2 emissions by 2% year on year compared to 2020.

Water Management:
A major focus area is water stewardship, with all ZF CVCS plants implementing Zero Liquid Discharge (ZLD). The commitment to ZLD ensures that no untreated water is discharged into the ground or drains. Furthermore, initiatives such as a 1,200 KL rainwater harvesting pond at the Jamshedpur site and ZLD systems across all plants have reduced freshwater consumption by 35%.

Waste Management:
The company has implemented a zero waste to landfill and incineration strategy. Key measures include the installation of an Organic Waste Converter (OWC) at the Ambattur plant, which converts canteen food into manure, thereby minimizing reliance on landfills. The total operational efficiency shows that recycled materials account for 5312.29 metric tonnes in FY 2025-26.

Governance and Ethical Practices​

The organization maintains a strong governance framework, including having a dedicated Risk Management Committee chaired by the Managing Director to regularly review ESG aspects.

Ethical Business Conduct:
ZF CVCS operates under a strict code of conduct, which includes anti-corruption and anti-bribery guidelines for its group. The company reported zero instances of disciplinary action taken against directors or KMPs related to bribery or corruption in FY 2025-26.

Stakeholder Engagement:
The company engages with various stakeholders, including customers, suppliers, employees, and the community, through ongoing programs such as:

• Regular customer satisfaction surveys.
• Conducting training and awareness programs for value chain partners, covering topics like Product Knowledge and Safety.

Key Performance Metrics Snapshot (FY 2025-26)​

The company continues to prioritize continuous improvement in its ESG practices, focusing on reducing resource usage and enhancing the sustainability of its commercial vehicle solutions.

ZFCVINDIA Stock Price Movement​

ZF Commercial Vehicle Control Systems India Limited (ZFCVINDIA) slipped by 2.44% today, settling at ₹2433.20 after trading closed in the post-market session. The stock's performance was marked by a decline of ₹60.60 from the previous close, amidst total traded volume reaching 217,234 shares.