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Sustainability Reporting and Materiality

We measure and report a range of topics and metrics related to sustainability. A number of sustainability aspects have a significant impact on our industry and are of high relevance to a wide range of stakeholders. Certain topics are relevant to a limited range of stakeholders and with limited financial impact. Regardless, our approach is that if we address the essential sustainability issues today, we will be stronger and more successful tomorrow.

Sustainability Reporting using GRI Standards

Our latest Annual and Sustainability Report consolidates sustainability as well as financial disclosures in one publication. We base our sustainability reporting on GRI, and we sometimes refer to additional standards. A GRI content index further helps to navigate to the correct page for easy access. 

Our materiality process around sustainability

Volvo Group seeks to have an open dialogue with a wide range of stakeholders and seeks to integrate stakeholder selection and dialogues on sustainability topics in ordinary communication flows. We combine the insights from stakeholders with our internal competencies and knowledge about impacts, risks and opportunities to outline our priorities. 

Our main stakeholders and how we receive their points of view

Main issues of interest among stakeholders

Customers

Customers are reached through daily interactions, customer satisfaction and brand image surveys, dialogue via social media, joint initiatives and trade associations, as well as thorough surveys and assessments from customer to Volvo Group.

 

Fuel efficiency and emissions, energy efficiency, intelligent technology, product safety and security, competitive behavior, operational performance of products and services.

Employees

Review of individual performance, employee engagement surveys, town hall meetings, internal webpages, Global Works Council meetings, internal online forums and discussions.

 

Employment, health and safety, restructuring, flexibility, electrification, digitalization, training and development, ethics and compliance, climate impact, diversity, inclusion, equality.

Investors

In this category we include both direct investors as well as analysts who follow and assess the Volvo Group. Dialogues are held in the form of capital market days, ad hoc investor meetings and specific dialogues, Annual General meeting, annual and interim reports, press releases and feedback, as well as questionnaires and surveys sent to Volvo Group.

Energy and resource efficiency, business ethics and compliance, climate related risks and opportunities, potential human rights impacts, environmental management.

Business partners and suppliers 

In this context, business partners are industrial peers in collaboration activities and initiatives such as academic partner programs, industry organization memberships and research programs. Dialogues with suppliers are exchanged via the Volvo Group’s supplier events, awards, assessments, audits and training.

 

Environmental life-cycle management, electrification of transports, pollution, greenhouse gas emissions, ethics and compliance, employment, health, safety and human rights in supply chains.

Society, including governments, media and NGOs

Media and press dialogues, dialogues with NGOs, volunteering and in-kind giving, training programs, societal engagement programs, public relations.

 

Responsible sales, climate change and environmental risks, connection between climate and financial risks, restructuring and employment, training and development of people outside the Group’s workforce.

GRI, TCFD, SASB and other standards

The Volvo Group builds its ESG-reporting on the GRI Standards for process, content and quality. Based on this, we add elements from TCFD, UN Guiding Principles on Business and Human rights, Greenhouse Gas Protocol and elements from Integrated Reporting and SASB.

Please refer to our sustainability notes in the Annual and Sustainability Report 2020 for all relevant KPIs and management approach. Also refer to our GRI index and SASB index to find the information you look for. 

Managed risk-taking

When we look at materiality, we start with the external world and megatrends. Some externalities impact us in several ways. Climate change is one example, as we are impacted in the following ways:

  1. Long-term strategic risk: such as technology shift and/or increasing government regulation, and,
  2. Short to-medium term risk: such as customer satisfaction, physical disruptions of the production system and environmental regulation.

Our ERM process

Each of the Volvo Group’s Business Areas is responsible for its own risk management.

The Volvo Group also works with Enterprise Risk Management (ERM), which is a systematic and structured process to report, analyze, and follow-up on risk assessments and mitigations. The ERM-process highlights material aspects to the Volvo Group, it includes numerous risks related to climate and environment, human rights and other social topics.