Volvo Car Group Sustainability Report 2Mi4
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volvo car group sustainability report 2014 ceo comment TABLE OF CONTENTS Dear Stakeholder, Our vision is to be the world’s most progressive and desired 1 INTRODUCTION premium car brand. To reach this vision, a firm commitment to sustainability is a prerequisite. We started making cars in 1927 1 CEO comment because we believed that nobody else was making them safe 2 Sustainability score card enough, and ever since we have strived to protect what´s important 4 This is Volvo Cars to people and to make their lives less complicated. 6 Corporate strategy Volvo Cars has defined a number of strategic change themes that 8 Sustainability management will lead us towards our vision and our corporate objectives. In 10 Sustainability governance each of these strategic change themes, sustainability is a core element. For example, to reinforce our product strengths, we aim 12 Stakeholder engagement to increase the share of hybrid drivetrains in our model range. Ever-stricter emission regulations in all major automotive markets 14 ECONOMIC DIMENSION mean that manufacturers have to constantly improve the fuel efficiency and emission levels of their cars and engines. And for 14 Economic performance Volvo Cars things are happening quickly. With all present cars to be replaced in the next four years, Volvo 16 ENVIRONMENTAL DIMENSION Cars stands at the beginning of an unprecedented revitalisation of 16 Managing environmental performance its product portfolio. The first milestone on this endeavour was 20 Environmental performance – products reached with the presentation of the all new XC90 in August 2014. By offering a twin-engine powertrain, combining electric and 28 Environmental performance – operations petrol power, unprecedented low carbon emissions were reached. For Volvo Cars, the constant changes in the surrounding world are 38 PEOPLE DIMENSION to be seen as possibilities rather than challenges. By understanding 38 People vision and strategy why and how the world around us is changing, we can not only 44 Health and safety of employees adapt but use new challenges as drivers for our continued business success. For example, research shows that attitudes among young 48 Diversity and inclusion consumers towards owning a car are changing. 52 Respecting labour rights 54 Ethics and integrity Consumers are also showing us that connectivity options are becoming more and more important when they make their purchase decisions. Increased connectivity between our cars and 58 SOCIETAL DIMENSION surrounding infrastructure and vehicles can also bring 58 Product responsibility improvements in terms of safety, fuel economy and avoiding congestion. I am therefore proud to say that Volvo Cars is 66 Future mobility spearheading the development of autonomous driving technologies. 68 Value chain management The Drive Me pilot project, arguably the most ambitious autonomous drive project in the world will have 100 self-driving 72 Societal engagement cars on public roads in 2017, driven by normal customers. 76 GRI index Being able to define the challenges and opportunities depends on our success in having the right talent and competence in our team. 79 Appendix 1 80 About the report 81 Information and contact LORUM IPSUM “To reach our vision, a firm commitment to sustainability is a prerequisite.” As cars become increasingly connected and packed with technology, have sustainability in mind in order to achieve long-term business we are in direct competition with large technology players in success. We will continue to develop the framework in 2015 and finding and recruiting digital engineering talent. The market for set objectives within various focus areas. A clear example of this is traditional engineering talent is also highly competitive. This issue our vision that no one should be killed or seriously injured in a new has been of particular relevance in 2014 as we grew worldwide in Volvo car by 2020. terms of employees. In order to attract the right employees and create a high-performance organisation, Volvo Cars has made a Volvo Cars works in collaboration with a wide range of partners strategic decision to integrate health in all aspects of our global and stakeholders and we will continue to do so. Collaboration and operations. This includes building an attractive and stimulating a strong commitment towards sustainability have guided Volvo organisation and work environment for our employees. I believe Cars since 1927 and is an important part of our heritage. that by having this human-centric focus we have an advantage in securing the competence needs of tomorrow. In this report, you can read all about our achievements in more detail; achievements that have been created by our dedicated During 2014 we made efforts to strengthen our commitments to employees and of which I am incredibly proud. sustainability and take these future trends into consideration by starting the development of our new Sustainability Framework. It defines our responsibilities, focus areas and goals in three dimensions: our direct impact as a company, the impact of our Håkan Samuelsson vehicles, and our role in society. It is our conviction that we need to President and Chief Executive Officer SUSTAINABILITY REPORT 2014 | VOLVO CAR GROUP 1 INTRODUCTION sustainability score card KEY SUSTAINABILITY DATA 2007 2008 2009 2010 2011 2012 2013 2014 TREND1) CREATING VALUE Total Sales (retail deliveries) 458,323 374,297 334,808 373,525 449,255 421,951 427,840 465,866 ASSUMING SOCIAL RESPONSIBILITY PRODUCT RESPONSIBILITY Safety test results Share of independent tests where Volvo Cars received the highest rank (%) 69 70 852) 832) 952) 95 952) 95 PEOPLE RESPONSIBILITY OCCUPATIONAL HEALTH AND SAFETY Health Sick leave per available hours (%) 5.50 5.00 4.70 4.50 4.40 4.40 4.50 4.50 Occupational injuries Number of injuries resulting in at least one day of sick leave per 200 000 worked hours 1.5 0.90 0.50 0.70 0.70 0.55 0.62 0.34 DIVERSITY AND EQUAL OPPORTUNITY Gender balance Share of women in leading positions (%) 18.00 18.50 18.70 19.60 21.00 21.30 22.90 24.50 Ratio of basic salary of women to men (white collar; average for grade levels) n/a 0.97 0.99 0.97 0.97 0.97 0.96 0.98 Ratio of basic salary of women to men (blue collar; average for grade levels) n/a 1.03 1.03 1.01 0.99 0.99 1.01 1.00 EMPLOYMENT Total workforce per year end 24,384 22,732 19,650 19,494 21,512 22,715 23,579 26,080 Rate of employee turnover3) 9.10 9.20 12.80 4.90 3.20 3.00 3.80 3.70 PROMOTING ECOLOGICAL SUSTAINABILITY EMISSIONS FROM PRODUCT Fuel efficiency Fleet average CO2 in EU (g/km) 190 182 173 157 151 143 131 125 ENERGY USE IN CAR PRODUCTION Total energy consumption in car production (MWh) 916,669 816,581 713,079 837,785 815,301 798,487 776,587 745,557 EMISSIONS FROM PRODUCTION Total carbon dioxide emissions (tonnes) 126,735 68,367 5,898 67,585 62,922 61,670 59,729 49,918 NOx emissions (tonnes) 101 90 71 85 80 72 76 77 SOx emissions (tonnes) 1 <1 <1 <1 <1 <1 <1 <1 VOC emissions (tonnes) 740 712 527 738 828 796 724 675 Hazardous waste (tonnes) 11, 3 9 5 9,320 5,594 9,087 11, 4 3 9 10,837 9,760 10,614 1) Trend indicates our progress in relation to Volvo Cars’ goals and vision. A plus sign (+) indicates that the company is moving in the right direction toward our goals, a minus sign (–) indicates that actions need to be taken for the company to move in our desired direction. 2) Restated due to changes in calculation methodology. 3) Total rate of employee turnover between 2007 and 2012 is based on figures from Belgium and Sweden. Total rate of employee turnover from 2013 and onwards is based on Belgium, China and Sweden figures. 2 VOLVO CAR GROUP | SUSTAINABILITY REPORT 2014 INTRODUCTION Recognition and awards In 2014 Volvo Cars was named the best car maker for the fifth year operations. Volvo Cars and Volvo Group received the award for in a row in the Sustainable Brand Index™, Scandinavia’s largest their shipments from Umeå, Sweden in the north to Ghent, brand study on sustainability. It is an annual study covering the Belgium in the south, by which, according to the Green Cargo, they 907 largest brands in Sweden, Norway, Denmark and Finland. contribute to and promote green transport solutions in Europe. Volvo Cars ended up 11th of the 253 most sustainable brands in Sweden, as perceived by the 9,500 consumers who participated in Volvo Cars has made good progress towards its goal of becoming the study. an employer of choice. Volvo Cars is on the Universum list of the world’s most attractive employers, in which students around the Volvo Cars remains on top when it comes to automotive safety globe are asked about their ideal employers. In 2014, Volvo Cars awards. Volvo Cars earned top results in 2015 IIHS Top Safety was ranked 40th on the list of most attractive companies according Pick+, the Volvo V40 won the Safest Car category in Carbuyer’s to engineering students in the world’s 12 largest economies, up Best Car Awards 2015 in the UK and the V40 Cross Country was from 49th in 2013. named Safest Car of the Year by Top Gear Baltics during 2014. In 2014 Volvo Cars, together with Volvo Group, also received the ‘Climate Comet of the Year’ environmental award from Green Cargo. Green Cargo presents this award to a company which has For more awards, see: made major improvements to the climate impact of its logistics https://www.media.volvocars.com/global/en-gb/awards VOLVO CAR GROUP | SUSTAINABILITY REPORT 2014 SUSTAINABILITY REPORT 2014 | VOLVO CAR GROUP 3 INTRODUCTION this is volvo cars The first Volvo car rolled off the production line back in 1927.