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Sustainable business

Haldex's work within sustainability is divided into the concepts of Safe, Ethical, Green and Humane Haldex. Haldex has a culture that promotes commitment, responsibility, good ethics in business relationships and positive interaction with the community in which the Group conducts operations.

Safe Haldex

Haldex manufactures products to create a safer traffic environment. Haldex works in several dimensions to ensure the safety of both customers and end users, as well as a safe working environment for Haldex employees.

Safety in society

The safety of customers, end-users and other road users guides Haldex’s actions as a major supplier of brake systems for broad use in the world’s fleet of commercial vehicles.

In the internal processes, the focus is on the products being of high quality and meeting Haldex’s strict functional requirements. Production is guided by extensive processes for how products are to be manufactured and tested. The Haldex Way framework has evolved from a Lean Production system to a framework for strategy deployment and result-driven improvements. Part of the Haldex Way is a standardized way of working, which in addition to productivity is fundamental for quality and a safe workplace.

The quality of the products is ensured by adopting established performance requirements in the affected markets as well as follow­ing up on the proportion of products subject to complaints and the number of warranty claims issued.

There is an interplay between technological development, efficiency measures and digitalization, and the development of auto­no­mous vehicles and logistics, making Haldex’s operations and products increasingly safe. Innovations contribute, for example, to increased stability and road safety.

Employee safety – Safety First

The Group-wide effort on safety is called Safety First (Safety #1). Haldex has a zero-vision for workplace accidents. There has long been a sharp focus on employee safety and established procedures to ensure this. However, this work has been considerably stepped up in recent years, with a focus on leadership and on changing behaviors from being reactive to being active. ­Employees are trained to take responsibility not just for themselves, but also for each other and to observe and act on potential safety risks.

Processes and procedures for how each task can be performed safely and according to regulations are continuously developed in each work element. The same applies to guidelines for instance regarding alcohol and drugs, violence and social problems.

Haldex has far-reaching criteria for reporting and acting on safety breaches. Haldex uses the concept of a safety pyramid, which is a theory that there is a direct relationship between accidents, near misses and safety risk observations. All accidents are communicated throughout the company. Corrective and preventive measures are implemented locally in combination with proactive prevention of incidents and observations of safety risks.

An accident is an injury that has resulted in more than two hours of absence from normal work, which is a stricter definition than is commonly used. A near miss or incident is an event that could have resulted in an accident. Safety risk observations are unsafe conditions or behaviors.

Ethical Haldex

Haldex’s ethics is permeated by the basic values: Customer First, Respect for the Individual and Passion for Excellence. The values are put into practical form and reinforced within the Group’s work with behaviours, which aims to promote increased cooperation within the Group and relationship building with employees in different parts of the company.

Code of Conduct

Haldex’s Code of Conduct is fundamental to all operations. Each employee is trained in it and signs it to confirm that they have under­stood and intend to follow the code.

In the ‘Customer First’ area, the Code of Conduct addresses areas such as bribery, corruption, gifts, conflicts of interest, competitive situations, business-critical information and business entertain­ment. There is zero tolerance of bribery, corruption, child labor and discrimination.

In the ‘Respect for the Individual’ area, the Code is about creating a good workplace in regards to:

  • respect for employees’ private lives
  • reasonable working conditions
  • zero tolerance of discrimination and harassment
  • equal opportunities regardless of gender, religion, sexual orientation, ethnicity, age or disability

Haldex of course strives for diversity among its employee. The Code of Conduct includes information regarding where ­employees should turn if they discover irregularities, feel harassed or feel discriminated.

As a complement to the Code of Conduct, there are more detailed policies. As an example, there is a procurement and finance policy in place to ensure proper management when approving investments, purchasing materials and when approving invoices.

In 2019, a digital platform for training in the Code of Conduct was introduced. The purpose of the training is to strengthen the code and ensure a greater level of understanding and compliance within the company.

Ensuring no harassment

Harassment is unacceptable according to Haldex’s values, its Code of Conduct and the 5C Framework. Haldex has established a ‘whistle­blower hotline’ which was fully implemented during 2020. The hotline received 2 (11) complaints, which were all investigated and closed during the year 2021. In 2021, a new tool was implemented for a more regular employee survey, where discrimination and harass­ment are a given area to ask questions about and follow up continuously.

Evaluation of suppliers

Haldex’s large number of suppliers poses an ethical risk and challenge, as they operate in many cases in countries where there are problems with the working environment, business ethics, safety and the environment. Haldex has initiated efforts to reduce the number of suppliers, which is expected to lead to efficiency improvements as well as better conditions for analyzing the supply chain from a sustainability point of view.

Haldex has implemented a Code of Conduct for suppliers that clarifies the requirements Haldex places on its partners. Existing suppliers are evaluated through planned audits, which include questions relating to the Code of Conduct. Haldex also applies screening and rating according to NQC of its largest suppliers, of existing suppliers ahead of new partnerships, and of all potential suppliers to cover the entire supply chain in a consistent manner.

Due to COVID-19 restrictions, on-site audits at the suppliers have been significantly reduced, limiting Haldex to conduct ­remote audits. However, the new suppliers added to the supply chain have been audited on-site according to the defined audit process. The rest of the supply chain are known partners, with a clear understanding of Haldex's business requirements. Never­theless, the lack of on-site audit is a risk to business governance.

Green Haldex

Haldex actively works on reducing its environmental footprint in connection with production, transport, and deliveries. Haldex focuses on developing new braking solutions that consume less energy, weigh less, take up less space and reduce the level of noise emissions. Haldex aims to be CO2 neutral for scope 1 and 2 by 2025.

The Haldex AB Greenhouse Gas Emissions Report 2021 includes an independent limited assurance report for the greenhouse gas emissions inventory in 2021 and its purpose is to provide an objective assurance to Haldex’s stakeholders over the accuracy, consistency, reliability and transparency of the greenhouse gas emissions data.

Direct environmental impact

The management of environmental risks within Haldex’s production sites, distribution centers, remanufacturing sites and friction centers has a notable effect on Haldex environmental footprint. Transport, together with electricity consumption, are the parts of Haldex’s process that have the greatest carbon footprint. Haldex’s analyses show that carbon dioxide emissions and material efficiency are the factors in the company’s operations that have the greatest impact on the environment. These key ratios are measured and followed up throughout the organization.

Haldex’s Environmental framework includes methods and initiatives to improve Haldex’s environmental impact. This work was further strengthened during 2021 when a new target was set to be CO2 neutral in greenhouse gas emissions for scope 1 and 2 by 2025. The plan for scope 3 is currently under development.

Haldex has an environmental committee with representatives of all production sites and distribution centers who jointly follow up targets and discuss improvements. Coordination between different units and projects have resulted in a decreased carbon dioxide emissions over the latest years, primarily through more sustainable electricity consumption. Haldex’s focus on seeking more environmentally friendly energy sources will lead to a continued decline in levels.

All production sites are controlled according to environmental management systems that are certified to the international standard ISO 14001. Systematic programs and environmental policies also contribute towards utilizing resources effectively.

The environmental impact of all units is analyzed quarterly, resulting in a Green Performance Map per site. This is a survey of the volumes of material, energy and other resources that are supplied to the production site, and the volumes of emissions and waste the production site generates. The survey includes results for two key ratios: total material efficiency and carbon dioxide emissions.

Material efficiency, defined as the ratio between all direct and indirect material entering Haldex, compared to what is delivered to customers, is an important metric for Haldex. Focus is to continue evaluating components used, packaging material, internal processes, reducing scrap and recycling or reusing waste material to ensure high efficiency.

Environmental impact through product quality and use

Sustainability and the environmental impact of Haldex’s products are an important parameter in product development. An environmental assessment, Green Product Assessment, is included early in the project as a mandatory input when products are changed or developed from scratch. Weight reductions and a higher proportion of sustainable materials used are key aspects considered.

The braking systems of tomorrow contribute to a more sustainable society. Historically, compressed air has been used in braking systems for heavy vehicles, but Haldex was early in exploring electro­mecha­ni­cal brakes, which are lighter than present-day brakes and use significant less energy than a compressed air-based system, which contributes in a positive way to the overall CO2 reduc­tion. This new and revolutionary system also reduces the noise level on ­vehicles and contributes thereby to higher demands for noise emission in urban areas. Another benefit of electro­mecha­ni­cal brakes is that they provide increased control over the vehicle.

Haldex has had a remanufacturing and friction business since the 1980’s. Remanufacturing is a cost-efficient and eco-friendly way to reuse components, which reduces the consumption of ­natural resources, energy, and the emission of greenhouse gases. As such, this business promotes a circular economy.

Humane Haldex

Haldex strives to continuously develop the organization for excellence through strong, sustainable leadership, competent and dedicated employees and an empowering culture – and always with diversity & inclusion in focus.

Haldex has staff in 18 countries and a total of 2,003 employees, around 32 percent of which are women. Approximately 60 percent of the employees work in production, while the remaining 40 percent are office-based staff. In a small global group like Haldex, the work to have common values, a clear Code of Conduct and a joint concept for how we should act within the company is a definite success factor.

Behaviour concept – how Haldex acts

Haldex’s 4C behavioral concept has been developed as a guideline for desired behaviors and how we ought to work in order to make Haldex a better, more efficient and more pleasant place to work.

Leadership development

Leadership is important for employees to thrive and for the business to achieve its goals, especially in these volatile times. Haldex would like to foster leaders who inspire, challenge and motivate. At the same time, leaders must be given the necessary conditions to achieve their potential.

Haldex holds different kinds of leadership development activities on different levels, based on the needs for the specific target group and this is continuously developed and updated over time. During 2021, most training was held digitally.

The Haldex Way framework is also one of the tools implemented to create a common way of working, and consequently forms part of the leadership development. Procedures and results are monitored at each facility by ‘assessors’ from other production sites. They propose improvement measures while deepening and broadening their own skills by evaluating the activities of others.

In the light of the changes going on in the automotive industry, the skills set also needs to change. For Haldex it is, and will continue to be, a priority to understand what competences are needed for the future, and what gaps have to be filled and how to fill them in order to reach and continue to maintain the competence level needed going forward.

Employee surveys

Haldex has previously worked with a traditional annual employee survey. In 2020, no traditional measurement was carried out
following covid-19. In 2021, a new tool for regular “pulse” measurement was implemented where employees answer a few questions each week. The results are aggregated and reported monthly. This new way of measuring aims to get an idea of the “temperature” within Haldex in real time, in order to be able to quickly act upon areas in need of development.