Volvo Group Sustainability Report 2010 VOLVO GROUP SUSTAINABILITY REPORT 2010 CONTENT Content STRATEGIC APPROACH CEO Letter ......................................................................................................................................................................................................... 4 Scorecard 2010 .................................................................................................................................................................................................. 6 Strategic Priorities .............................................................................................................................................................................................. 8 Challenges and Opportunities ......................................................................................................................................................................... 10 Future Transport Development ........................................................................................................................................................................ 12 Stakeholder Relations ...................................................................................................................................................................................... 13 Memberships and Initiatives ............................................................................................................................................................................ 15 Governance ..................................................................................................................................................................................................... 16 Corporate Governance .................................................................................................................................................................................... 20 Code of Conduct .............................................................................................................................................................................................. 21 How we do Business........................................................................................................................................................................................ 23 Anti-Corruption ................................................................................................................................................................................................. 25 Human Rights .................................................................................................................................................................................................. 28 Risk Management ............................................................................................................................................................................................ 29 ECONOMIC RESPONSIBILITY Value Creation ................................................................................................................................................................................................. 32 Executive Remuneration .................................................................................................................................................................................. 36 Investments for the Future ............................................................................................................................................................................... 37 Investor Assessments ...................................................................................................................................................................................... 39 ENVIRONMENTAL RESPONSIBILITY Environmental Priorities ................................................................................................................................................................................... 42 Climate Challenge ............................................................................................................................................................................................ 44 Product Development ...................................................................................................................................................................................... 47 Hybrid Technology ........................................................................................................................................................................................... 51 Carbon Dioxide Neutral Transports ................................................................................................................................................................. 53 Environmental Impact of use of Products ........................................................................................................................................................ 55 Environmental Performance in production....................................................................................................................................................... 57 Transport and Logistics .................................................................................................................................................................................... 61 SOCIAL RESPONSIBILITY Employees ....................................................................................................................................................................................................... 64 The Volvo Way ................................................................................................................................................................................................. 67 Development and Opportunities ...................................................................................................................................................................... 69 Diversity ........................................................................................................................................................................................................... 71 Health and Safety ............................................................................................................................................................................................ 73 Labour relations ............................................................................................................................................................................................... 76 Suppliers .......................................................................................................................................................................................................... 77 Supplier Requirements .................................................................................................................................................................................... 78 Evaluating Performance .................................................................................................................................................................................. 79 Society ............................................................................................................................................................................................................. 81 Towards Zero Accidents .................................................................................................................................................................................. 82 Encouraging Environmental Awareness .......................................................................................................................................................... 84 Community Engagement ................................................................................................................................................................................. 88 GRI-TABLE ................................................................................................................................................................................................................... 90 GLOBAL COMAPCT .................................................................................................................................................................................................... 96 ABOUT VOLVO GROUP .............................................................................................................................................................................................. 97 GLOSSARY ................................................................................................................................................................................................................... 99 ABOUT THE REPORT ................................................................................................................................................................................................ 100 WELCOME TO CONTACT US ................................................................................................................................................................................... 100 2 VOLVO GROUP SUSTAINABILITY