Volvo 2013 Annual Report Download - page 50

EFFICIENT PRODUCTION AND RESPONSIBLE SOURCING
Cornerstones of the Group’s
manufacturing operations
Environmental, economic and social sustainability is a long-standing cornerstone of the Volvo Group
business. We have adopted and developed tools, processes and production systems to help us set a
global standard of excellence and guide our employees on responsible behavior.
Global standards
An important tool is the Volvo Production Sys-
tem (VPS), which is used for many processes
throughout the organization, including product
development, business services and logistics.
VPS is a way of working with the minimum re -
sources necessary, and using methods that
streamline operations and minimize productivity
losses. It includes tools for measuring and improv-
ing workplace safety, health and well- being.
As employees infl uence the quality of prod-
ucts and services we deliver, transparency and
clear communications with cross-functional
teams are equally important aspects of VPS.
Quality, safety and environmental care are
our corporate core values and are embedded in
our sustainability approach. At each production
unit, we have quality coordinators, safety dele-
gates and environmental coordinators, and we
measure, monitor and continuously improve our
performance.
The Volvo Group conducts manufacturing in
18 countries worldwide. All production facilities
comply with prevailing legislation and our mini-
mum requirements for environmental manage-
ment and improvement, chemicals, energy con-
sumption, emissions to air and water, and waste
management. To ensure compliance, environ-
mental audits have been conducted group-wide
since 1989.
All our wholly-owned production sites have
certifi cation for the ISO 9001 quality manage-
ment system. 94% of our production is certifi ed
in accordance with the ISO 14001 environmen-
tal management standard and 37% in accord-
ance with the OHSAS 18001 international
standard for occupational health and safety.
The Group’s New River Valley plant in Virginia
and Macungie plant in Pennsylvania, U.S., have
both gained ISO 50001 certifi cation – the leading
international certifi cation program for driving
continuous improvements in energy effi ciency.
Both plants are also certifi ed to the top U.S.
energy specifi cation – the Superior Energy Per-
formance (SEP).
In 2013, there were 15 licensable facilities in
Sweden. There is a continuous review of the envi-
ronmental permits, but no environmental permits
need to be renewed in 2014. During the year,
there were no major environmental incidents.
Energy effi ciency
Our ambitions to increase energy effi ciency
and attain carbon neutrality are important both
in terms of environmental and economic sus-
tainability. The Volvo Group was the fi rst auto-
motive manufacturer to participate in the WWF
Climate Savers program. Since 2009, we have
reduced carbon emissions from our operations
by 13%. This is already in excess of the 12% tar-
get we are committed to achieving by 2014.
Focusing on energy saving has a clear im pact
on the Group’s fi nancial results. For example, at
our cab paintshop in Blainville, France, an energy
reduction plan saved 320,000 euros between
2011 and 2013, equating to an average annual
reduction of 4,513 MWh of energy and a 1,170
ton reduction in CO2 emissions.
Carbon-neutral manufacturing
Volvo CE’s factory in Braås, Sweden, was certi-
fi ed carbon neutral at the end of December
2013, becoming the fi rst construction equip-
ment production facility in the world to be pow-
ered entirely by renewable energy. This was the
culmination of collaborative efforts that began
back in 1999 and involved the local energy
A GLOBAL GROUP 2013 BUSINESS MODEL
Our Braås factory in Sweden is the world’s fi rst carbon-neutral production facility for construction equipment.
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