2022 Communication on Progress

Volvo Car Corporation

Published date

June 22, 2022

No. of questions

63

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    Our yearly Annual and Sustainability Report covers the above topics including our Code of Conduct which are overseen by our Board of Directors, and our CEO and Executive Management Team.

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Included in our Code of Conduct for employees and our Code of Conduct for Business Partners. See also our Annual and Sustainability report.

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    We have one Code of Conduct for employees and one Code of Conduct for Business Partners, see uploaded documents in question 2.

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Our SVP People Experience Hanna Fager is responsible for Human rights and Labour rights. SVP Legal Maria Hemberg for Anti-corruption and SVP Product Creation Henrik Green for Environment/Sustainability

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Our Board of Directors oversees all these topics including a People and Sustainability Committee for human rights, labour rights and environment and an Audit Committee for anti corruption. In addition our Executive management team oversees all the topics in the Executive management teams meetings and boards.

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Part of our enterprise risk management process as well as a functional risk management processes.

    6.1. During the assessment of risk, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Volvo Cars analyses its suppliers according to a risk assessment tool provided by the Responsible Business Alliance, an industry coalition dedicated to corporate social responsibility in global supply chains. TIn 2021, 4,551 supplier sites were included in the risk assessment which corresponds to 100 per cent of the active Tier 1 supplier and directed sub-tier supplier sites that deliver parts, components and services to Volvo Cars. In addition to suppliers we assess our 2200+ retail partners and joint venture and other type of business partners up and down stream of value chain.

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    We are doing several different supplier audits with thirds parties as well as internal resources. We also require all suppliers and retailers to have an ISO14001 certificate which has to be yearly audited.

    7.1. During the due diligence process, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Volvo Cars requires all direct material suppliers to complete the Self-Assessment Questionnaire (SAQ) on sustainability as this is a mandatory element in the sourcing process. We also do audits of our retailers and other business partners.

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    Our "Tell us" grievance channel is public and available for anyone inside our outside the company.

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    Our Tell Us reporting line provides all Volvo Cars employees and all external stakeholders with a dedicated reporting channel for raising concerns about any suspected violation of Our Code – How We Act , our policies, or applicable laws and regulations. Your report is anonymous, unless you choose to reveal your identity. https://www.volvocars.com/intl/v/legal/tell-us-reporting-line

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Business Partners are expected to collaborate with Volvo Cars in case of investigation and are expected to not retaliate against anyone who reports suspected business misconduct.

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    12

    Male (%)

    75

    Female (%)

    25

    Non-binary (%)

    We do not report this.

    Under 30 years old (%)

    0

    30-50 years old (%)

    8

    Above 50 years old (%)

    92

    From minority or vulnerable groups (%)

    We do not report this.

    Executive (%)

    8

    Independent (%)

    75
    Optional comment
    Since we are a Swedish listed company our board currently consist of 12 selected board members but in addition thereto the number of employee representatives as required under Swedish law.

    13. Do you produce sustainability reporting according to:

    WEF Stakeholder core metrics
    Optional comment
    Volvo Cars’ Sustainability Report has been prepared to meet the statutory requirements in accordance with the Swedish Annual Accounts Act, Chapter 6, section 11.

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    Auditors have performed a Limited Assurance report of our Sustainability report as part of our Annual Report 2021 from which the data for this COP is based, see page 188 in our attached Annual Report 2021
    Optional comment
    See uploaded Annual Report 2021 page 188.

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Commitment

    2.1. For each human rights policy, is it:

    Aligned with international human rights standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving human rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of expression

    Digital security / privacy

    Rights of women and/or girls

    Access to culture

    Rights of indigenous peoples

    Free, prior and informed consent

    Rights of refugees and migrants

    Access to water and sanitation

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    We believe that the well-being of people is fundamental to all aspects of life, therefore we are committed to provide a sustainable work environment for all employees through our people policy. This policy outlines our commitment to human rights and is based on international human rights standards. The people policy assessment project started in 2017 and is in line with the United Nations Guiding Principles on Business and Human Rights. It assesses both potential and actual human rights impact through desktop assessments, interviews conducted with key external and internal stakeholders, followed by on-site verification, assessment of risks, analysis of impacts, the creation and delivery of action plans. During 2021 we have worked actively in mapping and developing our internal due diligence processes. Activities have been performed to ensure that we have adequate procedures, in line with the UN Guiding Principles and efficiently manage the human rights risks related to our operations and value chain. In preparation for forthcoming regulatory requirements, we are also preparing tools and process, as well as developing competencies. Moreover, Volvo Cars is working with its business partners to ensure the prevention of all forms of child, forced or compulsory labour. There can be no child, forced or compulsory labour of any kind related to Volvo Cars business, products and services. This is clearly stated in our Code of Conduct and Code of Conduct for Business Partners. This prohibition includes debt bondage, trafficking and other forms of modern slavery. We have continued our efforts to ensure that our material is responsibly sourced. Volvo Cars requires all direct material suppliers to complete the Self-Assessment Questionnaire (SAQ) on sustainability as this is a mandatory element in the sourcing process. At the end of 2021, 847 supplier sites (82 per cent) had submitted a completed SAQ. Our Procurement Position on Metal and Mineral Sourcing and Code of Conduct for Business Partners are examples of key policy documents expressing Volvo Cars’ expectations and requirements towards suppliers regarding responsible sourcing. Volvo Cars has defined a list of 15 minerals, metals, and bio-based materials associated with high risks from a sustainability perspective. Examples are cobalt, lithium, aluminium, and nickel. The aim is to gradually make the supply chains for these critical raw materials more transparent, to enhance material traceability and to take risk-based measures. The purpose of Volvo Cars’ sustainability audit programme is to make comprehensive on-site evaluations of suppliers’ sustainability performance with the use of the Responsible Business Alliance (RBA) audit process. 100 per cent of high-risk Tier 1 supplier and directed sub-tier supplier sites are audited and the audits are conducted by an accredited third-party auditor. During 2021, Volvo Cars conducted 29 supplier audits of suppliers with a high-risk assessment score.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    2021

    Forced labour

    2021

    Child labour

    2021

    Non-discrimination in respect of employment and occupation

    2021

    Occupational safety and health

    2021

    Working conditions (wages, working hours)

    2021

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    We have a Code of Conduct and a Code of Conduct for Business Partners, see uploaded files.

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Volvo Cars has an ongoing collaboration with our key stakeholders like employees and direct suppliers, and collaborate with them and other stakeholders like NGOs to prevent and mitigate potential risk and impacts.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    We believe that the well-being of people is fundamental to all aspects of life, therefore we are committed to provide a sustainable work environment for all employees through our people policy. This policy outlines our commitment to human rights and is based on international human rights and labour right standards. We take a zero tolerance approach towards harassment and discrimination as defined in the Volvo Cars’ people policy. Training on discrimination, harassment and bullying are carried out throughout the organisation. The people policy assessment project started in 2017 and is in line with the United Nations Guiding Principles on Business and Human Rights. It assesses both potential and actual human rights impact through desktop assessments, interviews conducted with key external and internal stakeholders, followed by on-site verification, assessment of risks, analysis of impacts, the creation and delivery of action plans.

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    We take a zero tolerance approach towards harassment and discrimination as defined in the Volvo Cars’ people policy. Training on discrimination, harassment and bullying are carried out throughout the organisation. Moreover, Volvo Cars is working with its business partners to ensure the prevention of all forms of child, forced or compulsory labour. There can be no child, forced or compulsory labour of any kind related to Volvo Cars business, products and services. This is clearly stated in our Code of Conduct and Code of Conduct for Business Partners. This prohibition includes debt bondage, trafficking and other forms of modern slavery.

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    As example, during the year we have worked to ensure that all our employees are compensated fairly using acknowledged living wage principles, which have been incorporated into our people policy. We aim to be an example for change within our industry, including through promoting living wage principles among our business partners. In 2021 we exceeded the minimum statutory wages or collective agreement wages in entry level positions.

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    70
    Optional comment
    See Annual Report 2021, page 172.

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    28

    Non-executive board

    24

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    Plan to disclose in coming Annual Report.

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    0
    Optional comment
    Our LTCR was 0.06. Injury rate (LTCR) is defined as the number of work and occupational accidents reported with at least one day sick leave, divided by hours worked and multiplied by 200,000.

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    We report on injury rate (LTCR).

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    In 2021, 54 cases of discrimination and harassment were reported globally. All cases were investigated, and corrective and supportive actions were taken in all instances. During the first half of 2021, due to the Covid-19 pandemic, our objective has been to secure a safe workplace and take measures to facilitate remote work where possible. Many workplaces and activities were adapted to help employees to stay safe from Covid-19. The number of injuries leading to sick leave, measured as Lost Time Case Rate (LTCR), decreased from 0.10 to 0.06 for employees and from 0.20 to 0.05 for supervised contractors.

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Approximately 70 per cent of our global workforce is covered by collective labour agreements. The social dialogue between Volvo Cars and unions, where applicable, regarding information and consultation, creates value and contributes to the development of the company. We take a zero tolerance approach towards harassment and discrimination as defined in the Volvo Cars’ people policy. Training on discrimination, harassment and bullying are carried out throughout the organisation. In 2021, 54 cases of discrimination and harassment were reported globally. All cases were investigated, and corrective and supportive actions were taken in all instances.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2021

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    2021

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    2020

    Energy & Resource Use

    2020
    Optional comment
    Attached are two whitepapers/position papers Climate action and Circular Economy corporate positions covering the topics above. Besides that our environmental policy is included in Code of Conduct.

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    We treat climate action and air pollution together since our biggest climate impact is the emissions of CO2 from our products, operations and supply chain.

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

    Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)

    Climate Action

    40 per cent reduction of total lifecycle CO2 emissions per car (year 2025 vs baseline year 2018) - On track. 60 per cent reduction of absolute scope 1 and 2 GHG emissions* (2030 vs baseline 2019) - SBTi verified - On track. 52 per cent reduction of scope 3 GHG emissions from use of sold products per vehicle kilometre* (2030 vs baseline 2019) (well-to-wheel) - SBTi verified - On track. Climate neutral company by 2040

    Energy & Resource Use

    Climate neutral energy in manufacturing operations by 2025. - On track. 15 per cent water usage reduction per vehicle in manufacturing (year 2025 vs baseline 2018) - achieved 2021. 30 per cent Energy usage reduction per vehicle in manufacturing (year 2025 vs baseline 2018) - on track.

    Water

    Forests / Biodiversity / Land Use

    Air Pollution

    See Climate action targets above

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    20 per cent waste reduction per vehicle in manufacturing (year 2025 vs baseline 2018) - not on track.

    Oceans

    4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

    Progress is reviewed against goals annually or more frequently

    Progress is reported internally to the most senior level

    Progress is reported externally

    Other (Please provide additional information)

    Climate Action

    Energy & Resource Use

    Water

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Oceans

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    77000

    Scope 2 Emissions

    Emissions (tCO2e)

    45000

    Scope 3 Emissions

    Emissions (tCO2e)

    31902000

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    20
    Optional comment
    Proportion of EU Taxonomy eligible economic activities capital expenditures was was 95% of 33,654 MSEK = 31,971. Similar share of operational expenditures was 99% of 22,930 = 22,700 Total revenue was = 282,045. Share of revenue then = (33,654+22,700)/282,045 = 20%

    8. Has the organization acted to support climate change adaptation and resilience?

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    49
    Optional comment
    Renewable energy including heating share of manufacturing operations energy consumption.

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    16
    According to EU Taxonomy Technical screening criteria, the technical screening criteria for Manufacturing and Transport is cars with a tail pipe emission of less than 50g CO2 per km. In 2021 the share of factory complete vehicles with tail pipe emissions below 50g CO2 per km was 15.5 percent.(16%) as reported in our Annual Report 2021 page 184.

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    1391

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    34

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water consumed in regions with high or extremely high water stress (%)

    Optional comment
    Water use, Manufacturing Operations 1,391,000 m3

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    Sector-specific: Waste

    18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

    Waste Generated (t)

    288715
    Optional comment
    Waste, Manufacturing Operations.

    19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

    Hazardous Waste Ratio (%)

    3.7

    20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

    Single-use plastics (tonnes)

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    During 2021, we further reduced our total lifecycle carbon footprint per car. Since 2018, we have achieved a 9.5 per cent reduction per average vehicle. The result is in line with our expected trajectory towards our climate ambition. • We saw a significant reduction in our tailpipe emissions thanks to strong demand for our Recharge vehicles. The fully electric vehicle (BEV) proportion of our global sales will continue to increase. • The increase in supply chain emissions is due to the increased weight and materials in our Recharge vehicles compared to internal combustion cars. We are working hard to counteract this, including through targeting carbon-intensive materials and components. We estimate that our actions will start to take effect as we move closer to 2025. Our global manufacturing plants and offices are progressing well towards reaching climate neutrality by 2025. In 2021, our manufacturing plant in Torslanda (Sweden) became our first climate neutral car plant. Meanwhile our Daqing (China) plant secured a 100 per cent climate neutral electricity supply. We saw a 1 per cent increase in waste generation per car in manufacturing. This is mainly due to disturbed supply chains due to Covid-19 and rebuilding activities generating waste. • We reduced water usage by 23 per cent, thanks to an increased focus on water usage and process improvements as well as improvements in maintenance and leakages control.

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    2021

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Optional comment
    It is included in our Code of Conduct in the Anti-corruption policy, see page 12.

    Prevention

    3. Who receives training on anti-corruption and integrity?

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    Optional comment
    Volvo Cars requires all direct material suppliers to complete the Self-Assessment Questionnaire (SAQ) on sustainability as this is a mandatory element in the sourcing process. The SAQ has been developed in conjunction with the automotive industry as part of the collaborative initiative Drive Sustainability. The questionnaire covers areas such as business ethics, human rights, environmental management and responsible sourcing. All SAQ answers are validated by an external assessor and the suppliers are provided with recommendations on how to improve. The SAQ is a mandatory element in the sourcing process of all suppliers providing production material since 2019. At the end of 2021, 847 supplier sites (82 per cent) had son material since submitted a completed SAQ. We also invite suppliers globally to participate in various sustainability training events to strengthen awareness of the expectations set out in our Code of Conduct for Business Partners. In March 2021, Volvo Cars invited all suppliers globally to an online event with the purpose to join forces in the area of sustainability. Supplier feedback was positive and many said that the event was valuable for the understanding of Volvo Cars sustainability strategy and direction for the future.

    4. Does the company monitor its anti-corruption compliance programme?

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    5
    Corruption

    Confirmed during the current year, and related to this year

    We report this yearly in our Annual Report.
    Optional comment
    In 2021, 104 suspected violations of Our Code (excluding cases of discrimination & harassment) and our policies were reported to the Compliance and Ethics Office. Following investigation, 27 of these reports were substantiated, and disciplinary actions were taken in 21 cases, including employee dismissals and termination of supplier contracts. Out of the 27 substantiated cases, five related to corruption.

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    7. Does your company engage in Collective Action against corruption?

    We offer our own trainings as well as trainings through our collaboration platforms – Drive Sustainability and the Responsible Business Alliance. In March 2021, Volvo Cars invited all suppliers globally to an online event with the purpose to join forces in the area of sustainability.

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    For 2021, some of the key activities in this regard included: • The mandatory compliance & ethics e-learning for non-production employees, which this year focused on the main principles that apply when handling data and privacy aspects. The completion rate for the campaign was 83 per cent. • Leaders being trained in Ethical Leadership for Responsible Business via the leadership programmes. More than 1,700 leaders have been trained since the launch of the leadership programmes, with 96 leaders trained in 2021. An online version of the leadership module is being prepared to increase the reach of the programme. • +470 leaders and key stakeholders trained in rules governing insider training in connection to the company’s IPO. • +2,250 non-production leaders globally leading discussion(s) on ethical & responsible business conduct through the Responsible Business Discussion kits. • Senior leaders in APAC from all functions held five additional sessions highlighting compliance & ethics risks with their teams through the regional Compliance Talk Series. Seven mandatory risk-specific online courses on topics such as anti-corruption, data privacy and conflicts of interests launched in APAC. On average these courses were completed by +7000 employees.