Sustainable business

Haldex’s sustainability ambitions show the kind of company we seek to be. In many parts of the Group, we have worked on sustainability issues for a long time, while in certain countries within the Haldex Group, this is a newer phenomenon. A major step forward is that this work is now structured and organized on a global basis.

Sustainability objectives

Haldex’s sustainability work is based on the Universal Declaration on Human Rights, the United Nations Global Compact Initiative, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises.

At the end of 2013, we raised our CSR ambitions. A new function that reports directly to the Group management was established. The first assignment was to review conditions at Haldex’s different facilities. While many positive features were already an integral part of everyday activities, they were not, at that time, harmonized at global level. Haldex’s sustainability vision is to contribute to society by improving vehicle safety and efficiency with its products performance and optimization of resources. This provides the best sustainable value for customers, investors and employees. Three areas were identified as key to making a real difference and, in these three areas, we have drawn up global objectives – Safe Haldex, Ethical Haldex and Green Haldex.

Safe Haldex

Haldex has a joint, global program for safety – Safety #1 – whereby safety is a number-one priority. We have zero tolerance for workplace accidents. To achieve our target, we work with safer environments, training and attitude changing. A global improvement process has been in progress since 2014, under the motto “If you can’t do it safely, don’t do it.” Training for all personnel in production has taken place in 2015. Joint global guidelines for visitors and information material has been produced. New measurement methods were introduced in 2015, such as more nuanced measurement of incidents that often serve as a warning sign for more serious accidents. Reinforcing positive behaviors is also important, and showing why all incidents should be reported, no matter how insignificant they seem. Haldex defines an accident as an injury that leads to more than two hours of absence, which is a stricter definition than normally applied. An incident is defined as an event that could result in an accident.

Key figures - Safety

   2016 2015  2014
Number of incidents per million hours worked 156.0  107.6 -
Number of accidents per million hours worked 8.8  8.9 10.7

 

Ethical Haldex

Haldex has zero tolerance for bribery, corruption, child labor and discrimination. We have had a revised Code of Conduct since 2015. All employees are trained in the Code and sign that they have understood it and aim to follow it. Haldex’s Code of Conduct is based on our three values. One purpose of this division is to demonstrate that you cannot regulate and document all imaginable situations. In many areas, sound values must provide guidance. The value “Customer first” covers areas such as bribery, corruption, gifts, conflicts of interest, competitive situations, business-critical information and entertainment. In the Code of Conduct, the value “Respect for the individual” describes a good workplace with regard to employee privacy, unreasonable working conditions (including child labor), zero tolerance for discrimination and harassment, and equal opportunities regardless of gender, religion, sexual orientation, geographic origin, age or physical/mental difficulties. Finally, the value “Passion for excellence” covers areas such as safety and the environment, including drug-related problems and violence in the workplace.

Our suppliers are continuously assessed to ensure they adhere to the applicable sections of our Code of Conduct. In 2015, Haldex introduced a development program for suppliers, with the aim of raising quality among suppliers through joint projects where both Haldex and the suppliers benefit from the results. These projects continue over many months to get suppliers to truly realize the benefits of a changed approach.

Key figures - ethics

   2016 2015 2014
Proportion of employees trained
in the Code of Conduct, %
99,5 99.5 -

 

Green Haldex

Environmental issues play a major role in our sustainability work. With eight production plants and a number of restoration facilities, Haldex’s environmental management achieves noticeable effects. All of our production plants around the world comply with ISO 14001 requirements for their Environmental Management Systems as a minimum.

Systematic programs are in place to use resources efficiently and eliminate waste. In 2014, an extensive project was launched to map the environmental impact of all units. During 2015, work continued to develop a global compilation of resource utilization and specific targets for the reduction of resource utilization. A “Green performance map” has been developed for each production unit. This is a analysis of how much material, energy and resources are consumed by the facility, and the emissions and waste that it generates. Facts about resource usage and emissions in some 30 different areas have been compiled. In analyzing the data, Haldex has concluded that the most important key figures to monitor and set targets for are CO2 emissions and material efficiency. For 2016, Haldex aims to reduce CO2 emissions by 1.4 percent and to maintain or increase material efficiency. It is worth noting that numerical data are still not fully reliable from certain parts of the world where environmental regulations are not as extensive as they are in Sweden, for example.

An equally important part of our environmental efforts is product development. Environmental issues and sustainability are key parameters taken into account in the development process. In 2015, this was formalized by introducing an environmental life cycle assessment in an early stage of the project as a formal decision-making step when products are changed or redeveloped. The environmental impact of our customers’ usage of our products is equally as important as the environmental impact of our manufacturing processes.

Key figures - environment

   2016 2015  2014 
Material efficiency, %  93  93  -
CO2 emissions, tonnes 27,414 33,490  22,510 (1)
Proportion of suppliers meeting ISO 14001, % 41 34 31

(1) Five out of eight facilities reported this figure in 2014.

Haldex’s stakeholders

An initial step in our sustainability work is to analyse and identify who the company’s various stakeholders are and what they want to achieve. Among Haldex’s stakeholders, five groups have been identified as particularly important: shareholders, customers, employees, suppliers, and the communities in which we operate.

Shareholders
As a company, the overall objective is to generate long-term value for shareholders. We achieve this by combining sustainable operations with increasing sales and profitability. Stable and predictable development, with as little uncertainty and risk as possible, is preferable. Sustainability issues have also become a way of attracting investors, which is important in maintaining a stable shareholder base and being able to ensure the supply of capital in the long term.

Customers
Good sustainability work strengthens customer relationships and our offering. Customers want to work with reliable suppliers who have their operations under control and who can help them meet their own sustainability objectives. High-quality sustainability work also strengthens brand identity and generates long-term value. By investing in resource efficiency, both environmental impact and costs are reduced. A closely-related area that is very important to Haldex is quality. Sustainability and quality are closely linked because solutions are sought that are cost- and resource-efficient in the long term. Customers also demand flexibility and a high level of service from knowledgeable Haldex representatives. 

Employees
Haldex must provide employees a safe workplace where they can develop in their professional capacity and as managers. Everyone should understand how he or she contributes to achieving Haldex’s vision of a world of safer vehicles, which in turn inspires motivation and commitment. Working in a sustainable company also strengthens employees’ pride. Good working conditions and financial compensation in line with the market are self-evident. With increasingly fierce competition for skilled and experienced labour, our employees want to feel they make a difference and are helping to make a better world. Accordingly, ethics and values have become a very important factor in being able to recruit top talent.

Suppliers
Maintaining good relationship with suppliers generates mutual value for Haldex and its suppliers. Long-term relationships and financial stability benefit both parties. In relations with suppliers, ethics and morals are of the utmost importance in building a healthy competitive situation. Haldex can also contribute by encouraging and rewarding good working conditions and superior quality among suppliers. 

Society
Haldex is a significant employer in many regions where we operate. We contribute to the local economy with jobs and by paying taxes in areas including income tax, value added tax, pension fees, energy taxes and customs duties. Haldex wants to give back to the communities in which it operates by, for example, supporting local development, youth ventures, educational courses, and environmental initiatives.