The graph shows how many suppliers, Volvo Cars operations and dealerships that have implemented a certified environmental management system according to EMAS or ISO 14001.
Environmental Management
An environmental management system is a tool which is used to organize and focus environmental activities. Its primary aim is to identify and evaluate significant environmental impact, establish targets for improvement and direct operations towards the achievement of these targets, obviously in compliance with current legislation.
The indicators selected for the environmental management area are Suppliers, Volvo Cars Operations and Dealerships.
Suppliers' Environmental Programmes
Components manufactured by independent suppliers¹ account for up to 75% of the value of our cars. Since these components are used to make Volvo products, a supplier's ability to manage environmental issues is an important consideration. For this reason, Volvo Cars has chosen to determine how many suppliers have implemented a certified or registered environmental management system. To Volvo Cars, every link in the value chain must be taken into account and therefore, it is important that the suppliers take responsibility for improving the environmental performance of their products.
Continued Focus on Environmental Management Systems and Materials Reporting
The Volvo Cars requirement is that the company's suppliers shall have implemented third party-certified environmental management systems or shall submit a timetable for implementation of such a system within a reasonable time. By December 31st 2005, 88% of our suppliers concerned had achieved this goal. The graph shows the current level of suppliers with a certified or registered environmental management system.
Volvo Cars requires all suppliers to report materials and production material weights. Reporting in IMDS (International Material Data System) enables both Volvo, and its suppliers, to comply with the conditions of the Restricted Substances Management Standard of Ford Motor Company.
Best and Worst Cases
The best case is when every Volvo Cars supplier¹ has implemented a certified or registered environmental management system. The worst case is when no Volvo Cars supplier has implemented a certified or registered environmental management system.
Footnotes:
¹ Defined as a supplier of manufacturing materials worth over SEK 5 million annually to Volvo cars.
Practicing What We Preach
Volvo Cars must control its own environmental activities if it is to identify the most important areas for improvement and ensure that ongoing progress is achieved. Covering all parts of Volvo Cars, Multi Site certification means that the company's activities are certified under ISO 9001 (quality) and ISO 14001 (environment), and work in accordance with a common Business Management System (BMS). All other applicable parts of the company will be gradually included in the company's Multi Site certification. By December 31st 2005, 98% of the workforce of Volvo Cars majority-owned operations were working to an environmental management system.
Environmental Management Assists Improvement
Environmental Management Systems help personnel to work towards continual improvement and provide them with the environmental training required to achieve this.
Best and Worst Cases
The best case is when each of Volvo Cars majority-owned¹ operations has implemented a certified environmental management system. The worst case is when none of Volvo Cars' majority-owned operations has implemented a certified environmental management system.
Footnotes:
¹ Operations in which Volvo Cars has a shareholding of over 50%.
Dealerships
To the customer, the retailer is Volvo. Retailers must work systematically to reduce the environmental impact of their own facilities, including that of the cars which undergo service in their workshops. Thus, this indicator shows the proportion of dealerships in our major markets¹ which have implemented a certified environmental management system.
Environmental Standards for Retailers
Volvo Cars has applied environmental standards for retailers for many years with the aim of improving performance in this area. Aspects covered by the requirements and recommendations include waste management, chemicals handling and environmental training for retailer personnel. The standards can be used to advantage in the process of implementing a certified environmental management system.
Best and Worst Cases
The best case is when every Volvo Cars dealership¹ has implemented a certified environmental management system (ISO 14001)². The worst case is when no Volvo Cars dealership has implemented a certified environmental management system (ISO 14001).
Footnotes:
¹ In Europe, North America and Japan.
² Figures for 2006 are values measured on 31st December 2005. Corresponding figures for 2005 were measured on 31st December 2004 and the figures for 2004 on 31st December 2003.