LEADING THE TRANSFORMATION
Volvo Group
Annual and Sustainability Report
2021
Content
The Volvo Group drives prosperity through
transport and infrastructure solutions, offering
trucks, buses, construction equipment, power
solutions for marine and industrial applications,
financing and services that increase our customers’
uptime and productivity.
Founded in 1927, the Volvo Group is committed
to shaping the future landscape of sustainable
transport and infrastructure solutions.
The Volvo Group is headquartered in Gothenburg,
Sweden, employs 95,000 people and serves
customers in more than 190 markets. In 2021,
net sales amounted to about SEK 372 billion
(EUR 37 billion). Volvo shares are listed on Nasdaq
Stockholm.
Driving
prosperity
through
transport and
infra structure
solutions
OVERVIEW
This is Volvo Group....................2
CEO COMMENTS
CEO comments and key figures ........ 6
STRATEGY
The future of transportation
and infrastructure.......................
Driving prosperity.................... 12
Strategic priorities ................... 14
Perform ............................ 15
Transform........................... 16
Financial targets......................17
BUSINESS MODEL
Customers .......................... 19
Value chain..........................22
Partnerships ........................24
Our sustainability approach ...........25
CLIMATE AND RESOURCES..............26
PEOPLE.................................38
BOARD OF DIRECTORS’ REPORT 2021
Financial performance................45
Financial position ....................48
Cash flow statement .................52
Financial management ...............54
Changes in consolidated equity .......55
Segments...........................56
The share ...........................68
Risks and uncertainties...............70
NOTES TO THE FINANCIAL STATEMENTS..76
PARENT COMPANY.....................140
SUSTAINABILITY NOTES
Impacts, stakeholders
and material topics..................153
Climate and environment ............154
Sustainable finance .................162
Employees and development.........164
Safety .............................167
Human rights.......................170
Responsible sales................... 174
Suppliers ..........................175
Business ethics and compliance ......177
Organizational profile and
reporting practices..................178
CORPORATE GOVERNANCE REPORT
Corporate Governance ..............180
Board of Directors ..................186
Group Executive Board ..............192
OTHER INFORMATION
Proposed remuneration policy........196
Proposed disposition of
unappropriated earnings.............198
Audit report for AB Volvo (publ) ......199
Key Ratios .........................204
Eleven-year summary ...............207
Annual General Meeting .............216
Preliminary financial calendar ........216
The Volvo Group’s formal financial reports are presented on pages 45151, 196198 and 204206 and have been audited by the
company’s auditors. For information on which pages constitute the Volvo Group’s Statutory Sustainability Report, please see page 44.
Sustainability information can be found integrated in the Group overview on pages 644, in the Sustainability Notes on pages 152179
and in the Corporate Governance Report on pages 183 and 190.
100%
safe
The health, safety and wellbeing
of people is our main priority.
100%
more productive
By drastically increasing productivity
and efficiency in logistics systems it
is possible to meet a growing need
for transports while staying within
the boundaries of what our planet
can sustain.
100%
fossil-free
Climate change is the challenge of
our generation. Our ambition is to
enable our customers to go fossil
free and we strive towards net zero
emissions from our operations and
supply chain.
Our ambition is clear. Driving prosperity socially, environmentally and financially
means striving for transport and infrastructure solutions that are:
1
The Volvo Group’s products and services contribute to much of what
we all expect of a well-functioning and prosperous society, since
they are involved in many activities that most of us rely on every day.
The majority of the Volvo Group’s customers are companies within
the transportation or infrastructure industries. The reliability and
productivity of our products and services are a key factor in their
success and profitability.
Our customers
make societies
work
On the road
Our products and services help ensure that people
have food on the table, can travel to their destination
and have roads to drive on. They also deliver indus-
trial goods to keep production plants running.
Off road
Engines, machines and vehicles from the Volvo
Group are used to mine iron ore and haul stone and
rock. They also power vital irrigation installations all
over the world, so that farmers can grow their crops.
In the city
Our buses take people to work or school, trucks
collect rubbish and gensets are used as backup
power. Our products are also used to build housing
as well as industrial and sports facilities.
At sea
People can rely on our products and services,
regardless of whether they are at work on a ship,
travel ing to work on a ferry, on holiday in a pleasure
boat or need urgent help from the sea rescue services.
This is the Volvo Group
Overview / This is the Volvo Group
2