SUSTAINABILITY REPORT 2014/15 JAGUAR LAND ROVER AUTOMOTIVE PLC WELCOME TO JAGUAR LAND ROVER’S FIFTH ANNUAL SUSTAINABILITY REPORT This report describes how we are future- FEEDBACK proofing our business and embedding We welcome feedback on our approach to sustainability – Environmental Innovation in everything please email: we do to create strong foundations for [email protected] responsible, profitable growth. FURTHER INFORMATION For more detailed information and news please visit: www.jaguarlandrover.com/responsiblebusiness Cover image: Our Euro 6 standard Ingenium diesel engine. Find out more on page 21. Unless stated otherwise, the data in this report is for Fiscal Year ending 31 March 2015. Reporting scope and boundaries, page 51. OUR APPROACH OUR PEOPLE & CULTURE RESEARCH, DESIGN & INNOVATION OPERATIONS & SUPPLY CHAIN OUR VEHICLES IN USE OUR WIDER CONTRIBUTION APPENDIX 01 CONTENTS 02 OUR APPROACH 26 OPERATIONS AND SUPPLY CHAIN 02 Building a sustainable future: A message 28 Introduction from our CEO 29 Carbon neutral manufacturing 03 Our year at a glance 31 Managing natural resources 04 About Jaguar Land Rover 34 Building a sustainable supply chain 06 Global challenges 35 Reducing transport impacts 08 Environmental Innovation: Future-proofing 37 Occupational health, safety and wellbeing our business 26 OPERATIONS AND SUPPLY CHAIN 10 OUR PEOPLE AND CULTURE 38 OUR VEHICLES IN USE 12 Introduction 40 Introduction 12 Our people vision 41 Enabling customers to make sustainable choices 10 OUR PEOPLE AND CULTURE 15 Environmental Innovation at the heart of our 43 Making roads a safer place business culture 16 RESEARCH, DESIGN AND INNOVATION 44 OUR WIDER CONTRIBUTION 38 OUR VEHICLES IN USE 18 Introduction 46 Introduction 19 Whole life thinking 46 Our Global CSR Programme 20 Vehicle Life Cycle Assessment 48 Education and Talent 21 Optimising the internal combustion engine 49 Design and Technology 22 Alternative powertrains 49 Wellbeing and Health 23 Reducing weight 50 Our employees in the community 24 Saving energy 25 The changing urban scene 51 APPENDIX 52 Embedding sustainability 54 Targets and performance data 16 RESEARCH, DESIGN AND INNOVATION 44 OUR WIDER CONTRIBUTION OUR APPROACH OUR PEOPLE & CULTURE RESEARCH, DESIGN & INNOVATION OPERATIONS & SUPPLY CHAIN OUR VEHICLES IN USE OUR WIDER CONTRIBUTION APPENDIX 02 BUILDING A SUSTAINABLE FUTURE We are committed to growing the business with end-of-life and recycling considerations as ECONOMIC VALUE responsibly and sustainably, adding value to an intrinsic part of the design process. our customers and stakeholders and the wider communities in which we operate. This year, We are using our leadership in aluminium to £21.9 billion we were honoured to be recognised with the enable closed-loop recycling processes and revenue generated in 2014/15 Queen’s Award for Enterprise in Sustainable deliver lightweight solutions. The ultra-efficient Development, which acknowledges our Ingenium engine exemplifies our commitment to commitment to the environment and society. innovation and performance. Our joint venture in China has extended our international operational Significantly, we achieved a major milestone footprint and our manufacturing facility in Brazil, REVENUE (£m) PROFIT BEFORE (£m) in our vehicle emissions performance a year currently under construction, will provide further TAX ahead of schedule. A 25% reduction in our potential for responsible growth in that region. 21,866 2,614 2,501 European fleet average tailpipe CO2 emissions 19,386 (compared to 2007) shows our serious intent Passionate, engaged people drive our to perform ahead of evolving legislation. business and help our communities to thrive. 15,784 1,674 However, we recognise that driving sustainable Developing our talent pipeline and inspiring the growth relies on us continuing to break new next generation are therefore a vital part of ground. In 2014/15 therefore, to build on our Environmental Innovation. Our Global Corporate research and development in electric, hybrid Social Responsibility (CSR) Programme sets us and conventional powertrains, we invested over apart in terms of our commitment to making A MESSAGE FROM OUR CEO £3 billion in technology, design, engineering and a wider contribution to society and creating manufacturing to help us continue to provide the right opportunities for people to make a 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 what our customers, and the next generation, positive change. expect from us. The Company today is expanding. There will, Delivering experiences It is important that we consider environmental of course, be challenges ahead; however, the ambitious goals we have set ourselves provide 462,209 impacts over the whole life cycle of our vehicles vehicles sold on a retail basis* – our customers love for life and we have reduced our manufacturing facility a clear roadmap and give us the confidence to a 6.4% increase compared to 2013/14 is our business purpose, and CO2 emissions by more than 30% per vehicle achieve sustained future success.” (compared to 2007). Our strength in design, is underpinned by three key engineering and manufacturing gives us the DR RALF SPETH, business drivers: producing capability needed to shape our vehicles of the CHIEF EXECUTIVE OFFICER future. Two important new vehicles encapsulate world-class vehicles; putting Find out more about our Company our commitment to environmental performance. * Including sales from the Chery Jaguar Land Rover joint venture. and business performance in our the customer at the heart The new Jaguar XE is our most advanced and Annual Report 2014–15. of our business; and fuel-efficient saloon to date, while the new Land Rover Discovery Sport is delivering enhanced future-proofing through performance and fuel economy in the premium Environmental Innovation. compact SUV category, and has been created OUR APPROACH OUR PEOPLE & CULTURE RESEARCH, DESIGN & INNOVATION OPERATIONS & SUPPLY CHAIN OUR VEHICLES IN USE OUR WIDER CONTRIBUTION APPENDIX 03 OUR YEAR AT A GLANCE OUR WORKPLACE GLOBAL CSR Added 17 projects to our Global CSR Programme, 500 including an exciting technology-led initiative graduates and with ClimateCare, bringing apprentices safe water to communities recruited, in western Kenya via LifeStraw® water filters. joining almost 2,500 others recruited in recent years. Expanded our Inspiring Tomorrow’s Engineers schools programme and extended our support for HITZ Rugby, AWARDS which helps disadvantaged The Queen’s Award for Enterprise in Sustainable young people. Development 2015 was one of approximately Extended our partnership with the International Federation of 200 honours Red Cross and Red Crescent Societies (IFRC) until 2018. received during the year for our vehicles and operations. 30% SIGNIFICANT IMPROVEMENT IN TAILPIPE OPERATIONAL CO2 EMISSIONS IMPACTS REDUCED Achieved a 25% reduction in our Reduced CO2 emissions and European fleet average tailpipe water use by 30% (per vehicle CO2 emissions (vs 2007), helped vs 2007 baseline). by our continuing investment in advanced vehicle technologies, TWO KEY ALL-NEW MODELS including the new lightweight, The new Jaguar XE saloon (left) is the best-performing Jaguar to date for fuel-efficient Ingenium engine. environmental performance, delivering reduced impact over its lifetime. The new Land Rover Discovery Sport (right) switches seamlessly between two- and four-wheel drive for lower emissions, and achieved the best overall New Car Assessment Programme (NCAP) crash test score of all vehicles tested in 2014. OUR APPROACH OUR PEOPLE & CULTURE RESEARCH, DESIGN & INNOVATION OPERATIONS & SUPPLY CHAIN OUR VEHICLES IN USE OUR WIDER CONTRIBUTION APPENDIX 04 ABOUT JAGUAR LAND ROVER Founded on two iconic British vehicle brands, Jaguar and Land KEY FACTS Rover, we are the UK’s largest premium automotive manufacturer. LARGEST INVESTOR in automotive research, F-TYPE Coupé F-TYPE Convertible XJ saloon development and engineering in the UK More than 80% Premium vehicles recognised for their design, performance and quality. Jaguar’s range comprises of the vehicles we the F-TYPE Coupé and Convertible two-seater produce are exported sports vehicles, XJ saloons, the XF and XF XF Sportbrake XE sports saloon XF Sportbrake, and the new XE sports saloon. More than 35,000 people employed worldwide 19 national sales Range Rover Range Rover Sport Range Rover Evoque companies 2,640 Premium, all-terrain vehicles that differentiate franchised dealers themselves by their capability, design, durability, versatility and refinement. Land Rover’s range comprises the Range Rover, Range Rover Sport, Range Rover Evoque, the Land Rover Discovery, Land Rover Discovery Land Rover Discovery Land Rover Discovery Sport Land Rover Defender Sport and Land Rover Defender. OUR APPROACH OUR PEOPLE & CULTURE RESEARCH, DESIGN & INNOVATION OPERATIONS & SUPPLY CHAIN OUR VEHICLES IN USE OUR WIDER CONTRIBUTION APPENDIX 05 ABOUT JAGUAR LAND ROVER UNITED KINGDOM OUR THREE BUSINESS OUR OPERATIONS Halewood Coventry Vehicle Manufacturing Special Vehicle Operations PASSIONS Technical Centre Solihull Our corporate strategy revolves around Vehicle Manufacturing Gaydon three fundamental passions. These form Engineering, Design & Test facility Castle Bromwich our commitment to creating “Experiences Vehicle Manufacturing UK national sales company Customers Love, for Life”. Whitley Wolverhampton Global Headquarters, Engine Manufacturing Centre Engineering & Design Warwick University CUSTOMER FIRST Advanced Research Centre at 1 University