ZF Commercial Vehicle cuts emissions in FY 2025-26
ZF Commercial Vehicle Control Systems India filed its Business Responsibility and Sustainability Report for FY 2025-26, reporting 100% green electricity usage and significant reductions in Scope 1 and 2 emissions. The company maintained a Zero Liquid Discharge approach and recovered over 99% of its waste. Safety performance was strong with zero fatalities, and CSR spending exceeded obligations.

*this image is generated using AI for illustrative purposes only.
ZF Commercial Vehicle Control Systems India Limited filed its Business Responsibility and Sustainability Report (BRSR) and the Independent Limited Assurance Statement for the financial year ended March 31, 2026, with the stock exchanges on July 2, 2026. The filing, submitted pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, forms part of the company's Integrated Annual Report for FY 2025-26. The report details the company's environmental, social, and governance (ESG) performance, highlighting its commitment to sustainability and carbon neutrality targets.
Environmental Performance and Decarbonisation
The company achieved 100% green electricity across its operations in FY 2025-26, with 80% sourced through renewable energy procurement and the remaining 20% through green energy certificates. This shift contributed to a significant reduction in greenhouse gas emissions. Total Scope 1 emissions decreased to 1,265.38 metric tonnes of CO2 equivalent from 1,763 metric tonnes in the previous year, while Scope 2 emissions fell to 4,435.97 metric tonnes from 5,891.92 metric tonnes. The company reported a 28% decrease in Scope 1 emissions and a 25% decrease in Scope 2 (location-based) emissions compared to the previous year.
The company's decarbonisation strategy targets climate neutrality by 2040, with an interim goal to reduce Scope 1 and Scope 2 CO2 emissions by 80% by 2030 against a 2019 baseline. Key initiatives included the installation of a 200 kWp rooftop solar system at the Lucknow facility and the commissioning of a 1,200 KL rainwater harvesting pond at the Jamshedpur facility, which meets approximately 40% of the plant's annual water requirement.
Resource Management and Waste
ZF Commercial Vehicle Control Systems India maintained a Zero Liquid Discharge (ZLD) approach across its plants, ensuring no untreated water is discharged. Total water consumption for FY 2025-26 was 1,01,266 kilolitres, with a water intensity of 24.9 per rupee of turnover. The company implemented 51 energy-efficiency projects during the year, delivering annual savings of approximately 2,617 MWh.
In terms of waste management, the company generated a total of 5,446.73 metric tonnes of waste. Of this, 5,432.88 metric tonnes were recovered through recycling, reusing, or other recovery operations, aligning with its zero waste to landfill strategy. Hazardous waste disposal was managed safely through authorised agencies.
Social Impact and Governance
The company reported strong safety performance with zero fatalities and zero Lost Time Injury Frequency Rate (LTIFR) for employees. Worker LTIFR improved from 0.64 to 0.28. Total CSR spending for the year was INR 1,038.20 Lakhs against an obligation of INR 1,025.43 Lakhs, benefiting over 3 Lakh people across 16 states.
The BRSR report received limited assurance from SGS India Private Limited, confirming the accuracy and reliability of the core ESG indicators, including greenhouse gas footprint, water footprint, and energy footprint. The assurance engagement was conducted in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised) and ISAE 3410.
Historical Stock Returns for ZF Commercial
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.69% | -7.63% | +1.46% | -3.60% | +10.01% | +105.63% |
How will the company sustain the 80% renewable energy procurement strategy amidst potential future volatility in energy prices or grid availability?
What specific technological investments are planned to bridge the gap between the current 25-28% emission reductions and the 80% reduction target required by 2030?
With the majority of waste already being recovered, what are the next steps in the circular economy strategy to further reduce the total waste generated?































