Volvo 2014 Annual Report Download - page 53
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Energy effi ciency
Our ambitions to increase energy effi ciency and attain carbon
neutrality are important both in terms of environmental and eco-
nomic sustainability. The Volvo Group was the fi rst automotive
manufacturer to participate in the WWF Climate Savers program.
Since 2008, the results indicate that we have reduced carbon
emissions from our operations by 20%. This is already in excess
of the 12% target we are committed to achieve by 2014. For fur-
ther information, please see page 40.
Responsible sourcing
The Volvo Group’s responsible sourcing processes aim to reduce
the risk of incidents that may interrupt our supply fl ow or damage
the Group’s reputation, build long-term relationships with suppli-
ers and meet growing customer expectations.
Since 1996, the Volvo Group has consistently increased sup-
plier requirements on environmental issues, business ethics and
social justice. Our supplier requirements are based on the princi-
ples contained in the Group’s Code of Conduct, which is reviewed
and updated regularly.
During 2014 a number of CSR roadshows were completed all
over the world. The purpose was to train purchasers and Quality
Engineers on business ethics, social justice and environmental
issues affecting our supply chain. A the end of the year, the major-
ity of the purchasers had been trained.
The Volvo Group is part of the European Automotive Working
Group on Supply Chain Sustainability and during 2014 a work was
done in order to harmonize the automotive industry’s demands on
suppliers. A harmonized evaluation will facilitate for suppliers to
be correct and transparent. The new way of working will be imple-
mented during 2015.
CSR assessment
In line with general automotive industry practice, the Volvo Group
uses a self-assessment approach to evaluate supplier perfor-
mance and compliance with our CSR requirements.
The focus for the Group is on suppliers in high risk countries.
57% of suppliers from countries considered to be ‘high risk’ from
a CSR perspective have completed the self-assessment and
passed.
80% of the Volvo Group purchasing spend of direct material
derives from suppliers that completed the self-assessment during
2010–2014.
The main reason for not passing was a lack of adequate systems
to enforce our CSR requirements down the chain to sub-contrac-
tors. Others failed due to a lack of action plans in case of lack of
compliance.
More than 94% of our automotive
products spend is with ISO 14001 or
equivalent-certifi ed suppliers.
94%
49
A GLOBAL GROUP 2014 BUSINESS MODEL EFFICIENT PRODUCTION AND RESPONSIBLE SOURCING