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Sustainability Report 2019 SUSTAINABILITY REPORT 2019 2 TABLE OF CONTENTS CEO’S FOREWORD 3 KEY STRENGTHS, WEAKNESSES, RISKS AND OPPORTUNITIES 20 CLIMATE 35 HIGHLIGHTS OF 2019 4 TOWARD CARBON NEUTRAL OUR STRATEGY TOWARDS KEY SUSTAINABILITY TOPICS 5 VEHICLE MANUFACTURING 37 CLEAN MOBILITY 21 VALMET AUTOMOTIVE IN SHORT 7 WE BOOST THE USE LEADING SUSTAINABILITY OF ENERGY AND RESOURCES 40 FROM RESOURCES TO PRODUCTS 9 THROUGHOUT THE ORGANIZATION 22 NEW SUPPLIER REQUIREMENTS OUR 5 COMMITMENTS 11 CASE – HOW CO2 NEUTRALITY FOR PROTECTING ENVIRONMENT COMMITMENTS PUT INTO PRACTICE 12 BECAME OUR STRATEGIC GOAL 23 & HUMAN RIGHTS 42 ETHICAL PRINCIPLES 13 PEOPLE 25 TOGETHER 43 OUR SKILLED AND ENGAGING WITH STAKEHOLDERS 45 SUSTAINABILITY DEVELOPING PERSONNEL 27 COOPERATION WITH STRATEGY 15 CASE – FROM CAR PAINTER EDUCATIONAL INSTITUTIONS 46 KEY SUSTAINABILITY TARGETS 17 TO ENGINEER 29 BATTERY PLANT WAS SUSTAINABILITY PROGRAM HEALTH AND SAFETY OF OUR OPENED IN SALO 47 FOR 2020–2027 18 PERSONNEL 30 THE SUSTAINABLE A NEAR MISS SITUATION DEVELOPMENT GOALS 19 IN THE LOADING AREA 32 GRI & DATA 49 DIFFERENT BUT EQUAL 33 3 WELCOME TO READ THE FIRST SUSTAINABILITY REPORT OF VALMET AUTOMOTIVE Dear Reader, tainability, whether it concerns our per- welcome to read a brand-new publication sonnel, shareholders, customers or the en- by Valmet Automotive Group – our first vironment. Sustainability Report. With this annual re- Sustainability is deeply rooted in the port, we want to give you a deep insight Valmet Automotive culture. The key topics view of sustainability management in our of our sustainability concept – Sustainabil- company and how we continuously im- ity, Governance, Environment, Health and prove the economic, environmental and Safety, and People – are aligned with the social impact of our activities. 5 commitments of our corporate culture We are extending our reporting so you – Respect, Always Learn, Lead at all Levels, may participate in what we have accom- Show Entrepreneurial Spirit, and Deliver. plished, what we are pursuing and what is The Valmet Automotive Sustainabili- our future in sustainability. We explain our ty Report is a result of comprehensive in- operations in detail to give you a clear idea ternal company work. Previously, this work of the internal and external factors affect- has produced accomplishments and doc- ing our business, the challenges we face uments related to our commitments and and the solutions we implement. corporate culture for our personnel and With this report, we want to establish our partners. Now we take the next step a basis for constant, trust-based dialogue and present the Sustainability Report to with all our interest groups. We recognize the public. the importance of a sustainable approach in all of our operations, and as a service Enjoy reading provider for automotive industry, we have always complied to the strict requirements Olaf Bongwald of our customers. The same applies to sus- CEO, Valmet Automotive 4 HIGHLIGHTS OF 2019 Governance Environmental Social We opened The relative number of FINLAND'S FIRST We set a ACCIDENTS AT WORK* high volume CO2 NEUTRALITY TARGET at the Uusikaupunki plant production capacity for the Uusikaupunki car DECREASED BY 30% BATTERY PLANT plant by the end of 2021. compared to 2018. in Salo in October 2019. * The number of accidents at work per million working hours. We released a The environmental We introduced SUPPLIER management system of the Zary plant, which , THE 5 COMMITMENTS CODE OF CONDUCT manufactures roof and to build one uniform which defines the conditions kinematic systems, was corporate culture for for the responsibility Valmet Automotive Group. of our partners. ISO 14000 CERTIFIED. 5 KEY SUSTAINABILITY TOPICS – IDENTIFICATION AND SELECTION The focus areas of this report are based on material assessment conducted on group-level with the emphasis on Finland operations. With the assessment and the related stakeholder survey, we identified and prioritized the most relevant economic, social, and environmental sustainability topics. Ensuring well-being of the personnel and The two-part e-survey included ques- economic continuity are essential to stake- tions related to both automotive industry holders. Active mitigation of Valmet Auto- in general and Valmet Automotive’s op- ESSENTIAL SUSTAINABILITY TOPICS FOR KEY STAKEHOLDERS motive’s environmental impact is also con- erations. The survey was then conduct- sidered very important. ed in December 2019. The interviews, sur- GOVERNANCE The stakeholders shared their views vey and analysis were carried out by a • Ensuring business profitability about the most significant sustainability third-party partner. • Identifying driving forces in the industry and adapting to change themes, and the high response percent- The vast majority of the 360 answers • Close cooperation with municipalities and educational institutions age and several feedback comments indi- came from the Valmet Automotive per- • Attracting subcontractors to the area in cooperation with municipalities cate that stakeholders want to contribute sonnel and the rest of them mainly from to developing Valmet Automotive in sus- external stakeholders, such as service pro- SOCIAL tainability issues. viders and public authorities in Finland. • Continuous improvement of work safety Most respondents were from Uusikaupun- • Motivating employees, supporting coping at work and extending careers FROM INTERVIEWS TO ki, where the majority of the Valmet Auto- • Ensuring equal and fair treatment at workplace E-SURVEY motive personnel work. • Planning and predictability in employment Before defining the themes for the survey, Finland was chosen as the starting we first identified and selected the inter- point for this assessment because of its ENVIRONMENT nal and external key stakeholders. The sus- central importance to the company’s busi- • Profiling globally as a forerunner in environmental issues tainability themes for the survey were then ness operations. For the next year’s re- • Development of energy and material efficiency, identified from relevant documents and port, the survey will be expanded to give a reduction of energy consumption interviews of the key stakeholders. group-wide perspective. • Active reduction of environmental impacts in operations • Utilizing high technology and investments in new, greener processes and practices 6 7 VALMET AUTOMOTIVE – THE FAST LANE TO FUTURE VEHICLES The Valmet Automotive story began in the head office location and the view to cation of mobility is the strategic view all hicles reality. Around 4,000 of them work 1968, when Finland had more horses than the future – has changed. Valmet Automotive business lines share, in Finland – most of them at the car plant cars. At the time, a government-owned and actively promote. The most tangible in Uusikaupunki and battery plant in automotive company represented an in- ELECTRIFICATION sign of this took place in November 2019, Salo. Valmet Automotive’s locations and vestment into future technology. The plant TRANSFORMS BUSINESS when Valmet Automotive launched its personnel in Germany, Poland and Spain started with the car assembly but expand- Valmet Automotive Group services rest first large-scale automotive battery pro- complete the company portfolio. Around ed into engineering services. today on four pillars: Vehicle Manufactur- duction plant in Salo. 1,000 of the employees work in research During the company history of over 50 ing, Engineering Services, Roof & Kine- Valmet Automotive’s around 5,000 and development. years, practically everything – except for matic Systems and EV Systems. Electrifi- employees work to make the future of ve- OUR HISTORIC LANDMARKS 1968 1969 1986 1991 1992 1995 1997 1999 2005 2009 2010 2011 2013 2015 2017 2018 2019 Expansion in Founded as Saab-Valmet Expansion in Engineering Became Joint Venture between Roof Systems through company Launching independent from Renamed Valmet merged New shareholders Metso acquisition of battery Saab-Scania and Valmet, to Valmet with Rauma to through (beside Metso): Saab, fully owned stepped plant in Salo, construction of car plant Automotive establish Metso company Tesi and Pontos by Valmet out Finland in Uusikaupunki, Finland acquisition CATL as a new shareholder 8 2019 LOCATIONS FINLAND VALMET AUTOMOTIVE GROUP Uusikaupunki – Vehicle Manufacturing, Engineering Services, EV Systems manufacturing • Established in 1968 Turku – Engineering Services • Head office in Uusikaupunki, Finland Vantaa – Group Corporate functions • Parent company Valmet Automotive Inc. (Finland) Salo – EV Systems manufacturing • The main operational companies Valmet Automotive Engineering GmbH (Germany), GERMANY Valmet Automotive Sp zoo (Poland) and Osnabrück – Roof & Kinematic Systems engineering Valmet Automotive EV Power Oy (Finland) Munich – Product development • Around 5,000 employees Sindelfingen – Product development • Has delivered annually over 100,000 cars in recent Ingolstadt – Product development and testing years to world-wide markets Wolfsburg – Product development, • Net sales 651.5 (2018: 662.6) MEUR, testing and wire harness production operating profit 18.1 (2018: 17.8) MEUR Bad Friedrichshall – Product development, testing, small series production, prototyping and group corporate functions SHAREHOLDERS POLAND • Pontos (38.46%) Zary – Roof & Kinematic • Tesi (38.46%) Systems manufacturing • CATL (23.08%) SPAIN Antas – Testing MANAGEMENT TEAM • Olaf Bongwald, CEO • Charlotte Caswell, Remigiusz Grzeskowiak, Robert Hentschel, Minna Huhtaniska, Christian Kleinhans,
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