Volvo 2015 Annual Report Download - page 54

The Volvo Group’s approach to Corporate Social Respon-
sibility (CSR) and sustainability, focuses on conducting
business in a responsible manner, taking stakeholders’
perspectives into account, creating value for our stake-
holders and society, and contributing to sustainable transport
solutions and sustainable development.
Volvo Group CSR and sustainability model
Our CSR and sustainability model, shown on the next page, is
based on the United Nations Global Compact principles, other
internationally recognized norms of responsible behavior and con-
sultation with internal and external stakeholders.
APPROACHING SUSTAINABILITY
TO CREATE PROSPERITY
Building on responsible business behavior, creating shared value and delivering
sustainable transport solutions requires cooperation with the world around us.
The pyramid reflects our strategic framework and supports our
business vision, wanted position, strategic program and responsi-
ble business practices.
Sustainable transport
Delivering sustainable transport and infrastructure solutions cor-
responding to our customers’ needs, is the ultimate goal of our
CSR and sustainability commitment. We progress towards this
through leadership, innovation and research, and the development
and commercialization of pioneering products and services that
are driven by quality, safety and environmental care.
A GLOBAL GROUP BUSINESS MODEL
SUSTAINABILITY CONTEXT
As the population in the world continues to grow along with
the desire to create prosperity, the need for accessibility
and sustainable transport will increase. For us, sustainabil-
ity includes economic, environmental and social dimensions.
Our economic impact is totally dependent on our customers’ success.
By focusing on our customers, we secure financial health and the ability
to invest in innovative development. Thereby, we create employment
opportunities and long-term growth.
Our largest environmental impact comes downstream, from our prod-
ucts in use, and we therefore aim to deliver energy-efficient transport
and infrastructure solutions, corresponding to customers’ needs.
Our main social impact stems from offering safe transport solutions
that enable mobility and accessibility for people and goods – moving
both our business and society forward.
2015 was an exciting year from a sustainability perspective. The launch
of our electric buses to the ElectriCity project in Gothenburg was one
example of our leading position in electromobility and innovative public
transport solutions. With 470,000 connected vehicles delivered by the
Volvo Group, the potential for optimization, both from an economic and
environmental perspective, is enormous. In addition, we launched our
societal engagement program aligned with our business strategies. By
linking our societal activities with our core competences, we attain the
highest leverage in addressing the relevant social challenges of educa-
tion and skills development; traffic and worksite safety, and environmen-
tal sustainability.
We also faced some challenges during 2015. Reorganization and
lay-offs led to a continued negative trend in employee engagement, as
measured by our annual employee survey. Although it is flattening out,
this is something we take very seriously and revitalizing our culture is a
strategic priority.
In the EU, the Volvo Group and a number of other companies are still
under investigation by the European Commission regarding a possible
breach of EU antitrust rules prior to January 2011.
Our reputation of being a trustworthy company does not come for
free, we need to continuously work in an ethical and responsible way
and have an open and transparent dialogue with all our stakeholders.
This includes upholding the prin-
ciples stated in our Code of Con-
duct, which is based on the
norms of the UN Global Compact
that we have signed in 2001.
During 2016, I believe that our
new brand-based truck organiza-
tion will advance our market posi-
tions. Through close cooperation
with our customers we will further
secure both economic and envi-
ronmental efficiency.
Our remanufacturing constitutes an increasing part of our business. It
has great potential to tackle resource scarcity and create economic bene-
fits for our customers. This service offering also contributes to social devel-
opment by being more labor intensive and demanding high-skilled jobs.
Within the UN High Level Advisory Group on Sustainable Transport,
we will present our plan for concrete actions for the transition towards a
sustainable transport industry by the end of 2016.
Looking beyond 2016, I am convinced the Volvo Group has great
opportunities. In the next couple of years I believe that we will see even
more connected vehicles and machines and further autonomous solu-
tions, offering completely new opportunities for our industry, the envi-
ronment and society.
We have great assets in our employees, products and services, an
improved balance sheet and know-how. The mindset of contributing to
our customers’ success is already there. The coming years will be about
connecting all of these dots to reach our full potential. I am excited to
be part of this work.
To conclude, sustainability is not a “nice to have” it is a “must have”
and it will be even clearer that it is an integrated part of how we do
business in the Volvo Group. This combined Annual and Sustainability
Report is one way of showing it. I hope you like it.
Martin Lundstedt
CEO
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