Decarbonization

Reducing CO2 emissions with technology and processes

Decarbonization Starts With Intelligent Technology

ZF is electrifying mobility – from passenger cars and commercial vehicles to off-highway applications, ferries and rail vehicles. One thing is clear: industry must reduce emissions along the entire value chain. The use of efficient processes, renewable energy sources, and advanced technologies is crucial to achieving this. This is where ZF comes in.

How Does ZF Contribute to CO₂ Reduction?

ZF has SBTi-validated reduction targets and the ambition of reaching net zero in Scopes 1, 2 and 3 by 2040.

CO2 Reduction Through Business Transformation

Companies play an important role in decarbonization by reducing emissions: through improved energy efficiency, the use of renewable energy, and process optimization. Decarbonization can only succeed if emissions are reduced across the entire value chain. Key areas are research and development (R&D) and production.

Research and development

Decarbonization Starts With Product Development

ZF is working to reduce greenhouse gas emissions. This applies not only to ZF itself and its own production activities (Scope 1 and 2), but also includes emissions across the entire value chain (Scope 3). Further details and progress are outlined in the Sustainability Report.

ZF is working to advance the transition from linear value creation models to more circular approaches in selected product areas. To support this, opportunities for repair, reuse, remanufacturing, and recycling are already taken into account during the product development process.

The use of digital twins in product development is still relatively new. Digital twins can accelerate development processes by enabling virtual testing and optimisation. Where this reduces the need for physical prototypes and tests, it may also lower the associated material use, energy consumption and waste generation.

“Digital twins reduce resource usage and optimize processes. They also increase flexibility through faster adaptation of products or manufacturing processes.”
Dr. Rolf Reinema, responsible for IT infrastructure and IT in development and production at ZF

Virtual Journey Into Reality

Virtual development is inextricably linked to mobility’s transformation. Greater digitization of this critical process step is essential for suppliers like ZF to consistently meet customer expectations for speed and quality. Here’s an overview.

Successful Virtual Sprint

Greater competition and shorter development times strongly impact the testing of new components and systems. Developers at ZF are increasingly reacting by using digital twins, which offer even more advantages.

Responsible R&D Makes the Difference

ZF’s Group strategy includes objectives related to climate and resources, as well as people and responsible corporate governance. These objectives are intended to be progressively integrated into relevant business areas and processes. Research and development play an important role in this regard.

Production

Decarbonizing Production

To reduce pollutant emissions in manufacturing and assembly, ZF is pursuing several approaches:

On the one hand, the company uses low-emission materials and energy from renewable sources; on the other hand, ZF invests in modern production buildings and manufacturing facilities with the lowest possible energy consumption.

In terms of energy use, the Group has already reached an important milestone: Since 2025, all ZF sites worldwide have been supplied excl

To reduce emissions in manufacturing and assembly, ZF is pursuing several approaches: the company relies on materials with a demonstrably lower CO₂e footprint, energy from renewable sources, and energy-efficient production buildings and facilities.

usively with electricity from renewable sources. By the end of 2025, the company has also succeeded in reducing its Scope 1 and Scope 2 emissions by 85 percent compared to 2019 – five years earlier than planned.

Reduction in Scope 1 & 2 CO2e emissions
compared to 2019
85
%
Electricity from renewable sources
at all ZF locations worldwide
100
%
Reduction in Scope 1 & 2 CO2e emissions
compared to 2019
85
%
Electricity from renewable sources
at all ZF locations worldwide
100
%

In its production operations, ZF is working to increase the use of materials with a lower product carbon footprint than defined reference materials and to raise the share of recycled materials. This includes, for example, steel produced using processes in which hydrogen replaces a portion of the fossil-based reducing agents. ZF’s Board of Management has reaffirmed the company’s recycled-material targets. The material categories covered by these targets account for more than 95 percent of ZF’s production-material volume. This percentage describes the scope of the targets, not the current recycled-material share. Increasing the use of recycled materials can reduce the demand for primary raw materials where recycled materials replace functionally equivalent primary materials.

From a Linear to a Circular Economy

A functioning circular economy is an integral part of achieving climate goals and decoupling resource consumption from growth. Measures aimed at extending product life, promoting reuse, remanufacturing, and recycling products and materials are key elements of the ZF Circularity Framework.

These are just a few examples of ZF’s activities to reduce greenhouse gas emissions generated by its own operations.

Acting Now. Sustainability@ZF

The principle of sustainability is an integral part of ZF Group strategy. Its targets include net-zero greenhouse gas emissions across all scopes by 2040. However, sustainability means far more to us than climate protection. In addition to climate and nature, we focus on the dimensions of people and lasting values.

Measures to Reduce Transport-Related CO₂ Emissions

ZF develops electric and electrified drive technologies for a broad range of mobility applications, including passenger cars, commercial vehicles and selected off-highway, marine and rail applications. Depending on the application and energy source, these technologies can contribute to reducing operational greenhouse gas emissions. ZF also supplies gearboxes for wind turbines.
Electrification in Passenger Cars

The desire for individual mobility is as old as the automobile itself. ZF develops technologies designed to improve energy efficiency in a range of mobility applications.

ZF’s 8-speed automatic transmission is designed to support fuel-efficient operation as part of the overall vehicle powertrain. When integrated into a plug-in hybrid configuration, electric driving is possible for certain journeys. The ZF eDrive Platform SELECT provides a modular system for fully electric powertrains. ZF is also developing range-extender systems designed to extend driving range beyond the range available from the battery alone. The TherMas thermal-management system is designed to manage battery and cabin temperatures efficiently and can help preserve electric driving range, particularly under low-temperature operating conditions. Actual results depend on the specific vehicle configuration and use case.

“By combining high performance individual components with attractive system level functions, e drives can be configured for a very wide range of applications – with significantly shorter development times.”
Dr. Otmar Scharrer, Head of Development for E Drive Technologies at ZF, on the SELECT platform

ZF eDrive Platform SELECT

The e-drive is the heart of a battery-powered vehicle. Thanks to SELECT, it operates with zero emissions.

Automatic Transmission: Fourth-Generation Efficiency

Since 2022, ZF has been producing a new 8-speed automatic transmission for passenger cars with mild hybrid and plug-in hybrid drives as well as for pure combustion engines. Never before has top electric performance been packaged so compactly.

Range Extender: More Than Just Extra Range

ZF has significantly advanced the technical concept of the range extender. As a result, the range extender primarily caters to the needs of Chinese electric car manufacturers, but it also has the potential to boost the electric mobility markets in Europe and North America.

A New Take on Thermal Management

ZF has built a reputation for delivering a wide range of drive technologies in electrified mobility. Its advanced TherMaS thermal management system is another solution for extending the range of battery-electric vehicles on a single charge.

More efficiency, safety, and comfort for passenger cars

ZF's product portfolio includes innovative driveline and chassis technology for passenger cars with conventional driveline as well as for hybrid and electric vehicles. In addition, ZF offers both components and systems for passive safety technology. ZF is shaping the future of mobility with its unique expertise.

Electrification of Commercial Vehicles

Electrification in commercial vehicles currently shows a clear split: While electric buses – especially city buses – already achieve high market shares, heavy electric trucks are only at the beginning of their commercial breakthrough.

Technical Development in Trucks

The market for electric trucks will gain momentum in 2026. Key drivers are legislators worldwide. Under EU law, for example, truck manufacturers in Europe must reduce emissions from new trucks by 45 percent by 2030 and by 90 percent by 2040, compared with 2019 CO₂ levels. Trailer manufacturers must also improve emissions values by ten percent by 2030.

Challenges remain in electrifying long haul truck fleets with battery electric vehicles. China is clearly leading in this area. The still incomplete fast charging infrastructure (Megawatt Charging System, MCS) for heavy trucks favors alternative solutions such as hydrogen combustion engines, fuel cells, and hybrid technologies.

To advance decarbonization in trucks through electrification, ZF has developed a modular system with various electric drivetrains that are efficient, robust, and cost effective. For trucks with conventionally designed drivetrains, the electric central drive CeTrax 2 is of particular interest. Its variants for light to heavy trucks now form a family of their own.

The CeTrax solutions are complemented by three systems of the electric axle AxTrax 2. While the CeTrax 2 central drive powers a conventional rear axle via a drive shaft, the AxTrax 2 integrates electric motors and transmissions directly into the axle.

In addition to fully electric drivetrains for trucks across different weight classes, ZF offers the TraXon 2 automated manual transmission in the electrified TraXon 2 Hybrid version. Depending on the vehicle configuration and operating profile, the hybrid system can help reduce fuel consumption and the associated operational CO₂ emissions.

TraXon 2 Hybrid as a PHEV
47
%
Maximum CO₂ reduction achieved by the TraXon 2 Hybrid commercial vehicle transmission as a PHEV in long haul operations, and up to 73% in distribution traffic, according to a VECTO simulation – provided consistent intermediate charging is applied.

A Dynamic, Low-emission Path to the Future

As freight traffic on roads around the world continues to grow, the decarbonization of heavy-duty trucks is becoming increasingly important. With the TraXon 2 Hybrid, ZF is developing a driveline solution that reduces greenhouse gas emissions compared to conventional diesel powertrains while meeting upcoming stricter emissions standards.

Decentralization for a Central Drive

Difficult circumstances have marked the preparations for the start of volume production of CeTrax lite, the electric drive system for light commercial vehicles. The key to success: the European-Japanese ZF team.

Powerhouse for E-Trucks: CeTrax 2

CeTrax 2 is ZF's integrated and modular electric central drive for heavy-duty commercial vehicles. It is designed to seamlessly package within the space of the transmission of an ICE vehicle.

Read more in ProductFinder

Technologies for Long Distances and Heavy Loads

ZF offers a broad portfolio of complete driveline, steering and advanced safety systems for trucks.

Technical Development in Buses

Electric buses play a central role in the global transport transition. They are locally emission free and quieter than diesel buses. According to a 2025 international study by the Institute for Transportation and Development Policy (ITDP), more than 50 percent of all public transport journeys worldwide are made by bus.

Based on the defined operating and energy-supply assumptions, an electric bus can result in lower annual operational greenhouse gas emissions than a functionally comparable diesel bus. In the assessed best-case scenario, the calculated difference was up to 60 metric tons of CO₂e per year. The result depends in particular on annual mileage, vehicle energy consumption, route profile and the greenhouse gas intensity of the electricity used. City buses in particular are pioneers of commercial vehicle electrification. According to the International Energy Agency (IEA), more than 70,000 electric buses were sold worldwide in 2024, driven mainly by China and strong growth in Europe.

ZF draws on its modular e drive kit for commercial vehicles, the result of more than 30 years of experience. As early as 1994, ZF presented its first low floor electric axle for buses. Multiple generations later, this technology has evolved into the AxTrax 2 LF electric portal axle.

Depending on requirements and vehicle type, customers can choose from multiple AxTrax 2 electric axle drives or CeTrax 2 central drives. Among all commercial vehicle types, electrification and decarbonization are most advanced in city buses. Intercity and coach buses, with their significantly longer ranges, remain more challenging. Here, plug in hybrid drivetrains act as an important bridging technology.

Technologies for lower-emission passenger transport

ZF offers a broad portfolio of driveline, chassis, safety, and automation technologies for urban and coach buses. These solutions can help vehicle manufacturers further enhance safety, connectivity, and energy efficiency.

E mobility off the road

Electric Operation on Construction Sites, at Sea, and Beyond

Decarbonization must go beyond road traffic. Electrifying construction machinery and agricultural machinery as well as shipping is equally essential. In the aforementioned vehicles, these machines are truly emission-free only when powered by electricity from renewable energy sources. ZF contributes here through its global involvement in wind energy. ZF’s off-highway activities are organized within the Industrial Technology division.

Electric Construction Machinery for Locally Emission-Free Operation

By 2050, an estimated two thirds of the world’s population will live in metropolitan areas. Electrifying construction machinery plays a vital role in decarbonization by eliminating CO₂ emissions directly at the point of use. It also reduces fossil fuel consumption, improves air quality on construction sites, lowers noise exposure, and reduces maintenance requirements.

Although purchase costs are often higher, total cost of ownership (TCO) frequently favors electric machines due to lower energy and maintenance costs. Stricter emissions regulations and local initiatives are accelerating this transition. In Oslo, for example, 85 percent of municipal construction sites were already emission free in 2025.

Electrification for Reduced Emissions in Agriculture

Although agricultural machinery makes only a relatively small contribution to global CO₂ emissions compared with sectors such as energy or transport, it still impacts overall greenhouse gas balances. Agricultural machinery is estimated to account for around 1–1.5 percent of total global greenhouse gas emissions.

ZF contributes to decarbonization in agriculture and forestry with products such as the electrified continuously variable transmission eTERRAMATIC eCVT, the fully electric eTERRADRIVE tractor drive solution, and the eTRAC electric central and wheel drives.

Driving Lower Emissions in Rail Transport

Rail is among the most energy-efficient modes of passenger and freight transport and can contribute to reducing transport-related greenhouse gas emissions, particularly where it replaces more greenhouse-gas-intensive road or air transport. According to the International Energy Agency, rail carries around 8 percent of global passenger transport and 7 percent of freight transport while accounting for approximately 2 percent of total transport energy demand.

ZF has been active in rail technology for more than a century, from its first rail drive system in 1924 to today’s modern gearboxes such as EcoLife Rail 2, EcoMet, and EcoWorld 2. These systems improve comfort and efficiency in diesel and electric multiple units, metros, trams, locomotives, and high speed trains.

Supporting the Decarbonization of Commercial Vessel Operation

Shipping is responsible for an estimated 2.5–3 percent of global CO₂ emissions, equivalent to around eleven percent of transport sector emissions. Between 2019 and 2024, the OECD recorded a nine percent increase, mainly driven by growing global freight traffic.

In 2023, the International Maritime Organization (IMO) set the ambitious goal of achieving climate neutral international shipping by around 2050. ZF Marine has been contributing for decades with hybrid gearboxes, ENC gearboxes, and hybrid and electric thrusters for tugs, ferries, and research vessels.

Low-Emission and Quiet Construction Site

Now electrification is also reaching construction sites. An electric compact wheel loader with ZF eTRAC is the first of its kind. ZF offers a complete system of high-performance e-drives for a wide range of vehicle sizes.

Now electrification is also reaching construction sites. An electric compact wheel loader with ZF eTRAC is the first of its kind. ZF offers a complete system of high-performance e-drives for a wide range of vehicle sizes.

E-Ferries: Reducing Operational Energy Use and Emissions

The prevalence of shorter routes makes ferries the ideal electrification candidates. About the advantages of maritime e-drives and what ZF contributes.

Ferry on the sea with mountains in the background

ZF Products Off the Road

Whether on water or on land - ZF keeps things moving off-road, too. ZF supplies the right driveline and transmission solutions for many industrial applications.

Energy generation

ZF Wind Power: ZF Gearboxes for Wind Turbines

Wind energy makes a decisive contribution to global decarbonization and thus to climate protection. After all, it replaces fossil fuels in electricity generation and therefore significantly reduces the amount of greenhouse gas emissions released in atmosphere.

The commitment to decarbonization arises, among other things, from the Paris Climate Agreement of 2015. In it, the signatories of 197 states declare their intention to limit global warming to well below 2 degrees Celsius, and preferably to 1.5 degrees Celsius, compared to pre-industrial levels.

According to the European Commission, an onshore wind turbine can, within less than one year of operation, avoid an amount of greenhouse gas emissions equivalent to those generated over its life cycle. Over its remaining service life, averaging around 25 years, it generates electricity without combustion-related emissions at the point of generation.

ZF Group has pooled both the design and production as well as services related to wind turbines within its business unit ZF Wind Power. With nearly half a century of activity in the wind business, this gives ZF vast knowledge in technology and markets, benefiting customers worldwide. Whether for onshore or offshore applications, the Group now supplies gearbox solutions and services for wind turbines with capacities of up to 15 megawatts.

Innovation and Fascination on an XXL Scale

ZF Wind Power stands for the highest quality at competitive prices and close customer relationships around the globe.