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Sustainable business

Haldex’s sustainability vision is to contribute to society by improving vehicle safety and efficiency with its products’ performance and optimization of resources. Three areas have been identified as key to making a real difference and, in these three areas, global objectives and policies have been drafted – Safe Haldex, Ethical Haldex and Green Haldex.

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. The strategy and sustainability objectives are translated into specific targets and actions in close collaboration with the functions. Risks related to sustainability are analyzed continuously by Group Management and measures are adopted.

On the whole, the Board considers that Haldex maintains a good level in its own processes in areas such as environmental impact, human resources, social conditions, human rights and counteracting corruption. Since 2017, efforts to safeguard a corresponding level among our suppliers have been intensified.

Safe Haldex

Haldex manufactures products to create a safer traffic environment, which gives safety in Haldex several dimensions – customer and end-user safety, and a safe working environment for Haldex employees. Safe Haldex is part of the EU’s defined sustainability areas for personnel and social conditions. The safety of road users, meaning customers and end-users, represents key features of the products developed, and the focus of the internal processes is thus on products maintaining a high level of quality and meeting Haldex’s ambitious functional requirements.

Haldex’s own manufacturing process is governed by extensive processes regarding how products are to be manufactured and tested. Applying the Haldex Way, it is constantly being analyzed how every detail of the production process can be improved. To safeguard employees’ safety, Haldex has a shared, global safety program called Safety#1, meaning that safety is the top priority. Haldex has zero tolerance for workplace accidents. To achieve this, safer environments are being created, training is being done and extensive work is under way to change attitudes. A comprehensive improvement process has been in progress since 2014, under the motto “If you can’t do it safely, don’t do it.” Processes and procedures have been further eveloped for how each task can be performed safely without circumventing the requirements. In addition, policies have been improved regarding alcohol and drugs, violent behavior and social difficulties, to be able to prevent problems at an early stage, thus creating a safe workplace.

As part of Safety#1, Haldex has provided training for all production personnel. Joint global guidelines for visitors and information material have been produced. New measurement methods have been introduced since 2015, including more nuanced measurement of incidents that often warn of the possibility of more serious accidents. Reinforcing positive behaviors is also important, and showing why all incidents should be reported, no matter how insignificant they seem. The number of incidents has increased, which, in this case, is positive because an attitude change is strived for whereby all incidents are reported to better prevent accidents. Since 2017, all accidents have been reported globally on the intranet, along with preventive measures to learn from one another and avoid incidents being repeated. In 2018, a safety committee was introduced with representatives from all of the production plants. The committee follows up on targets, shares ideas and learns from each other about how safety can be improved. During the year, safety observations were also introduced where employees help each other identify risky behavior.

Haldex defines an accident as an injury that leads to more than two hours of absence, which is a stricter definition than that normally applied. An incident is defined as an event that could result in an accident. Identified risks in this area there are health and safety injuries, which are managed by the policies and working methods drafted within the Safety#1-program.

The target for safety is for the number of accidents to decrease each year. The target for incidents is for the number of incidents reported should be in line with the number of actual incidents, thus providing a precautionary warning system. However, it is difficult to know when this target has been achieved. As incident reporting has yet to achieve full implementation within Haldex, this key figures is expected to continue rising.

Ethical Haldex

Haldex has zero tolerance for bribery, corruption, child labor and discrimination. Ethical Haldex represents part of the EU’s defined sustainability areas for human rights, anti-corruption and personnel.

Haldex has 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 the company’s three values. The Code of Conduct also contains clear descriptions of where employees should turn if they discover any irregularities or feel harassed or discriminated against.

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, having solely reasonable working conditions, zero tolerance for discrimination and harassment, and equal opportunities regardless of gender, religion, sexual orientation, geographic origin, age or physical/mental difficulties. To achieve a dynamic corporate culture, Haldex works to attract people with different backgrounds, personalities, perspectives and knowledge. It is thanks to diversity that Haldex is where it is today. Among other things, during 2018, Haldex achieved 40 percent of the AGM-elected Board members to be women and increased the share of women in the company from 27 percent to 28 percent. Finally, the value “Passion for excellence” covers areas such as safety and the environment, including drug-related problems and violence in the workplace.

As a complement to the Code of Conduct, there are also more detailed policies for those working with purchasing and finance, so that investments and purchases of materials are correctly implemented and approved.

A challenge for companies like Haldex is the large number of suppliers in many cases operating in countries where there are problems with the work environment, business ethics, safety and the environment. For many years, Haldex has been working to continuously assess suppliers through both planned and unannounced visits. In 2017, a version of the Haldex Code of Conduct was introduced for suppliers, detailing even more clearly what levels a supplier needs to achieve to be part of the Haldex network. In recent years, partnerships have been terminated with suppliers whom we felt could not prove future compliance with the established requirements. Historically too, partnerships have been terminated on suspicion of irregularities, even where not proven.

The local community commitment is also included in the area of ethics. Giving back to the communities where Haldex operates is important to us. This may be expressed in different ways depending on the level a country has currently attained. In India, where one of Haldex’s largest production facilities is located, community support initiatives are greatly needed. There, Haldex has, for example, adopted schools, where teaching positions are financed. Haldex offers scholarships to encourage girls to choose engineering as their profession and is arranging study visits. Investments in infrastructure, such as bridges and dams are another way of supporting the local region. In Sweden, different efforts are needed. Haldex has, for example, partnered on traffic safety for school students, and participated in the Smart Matte (Smart Math) project to interest students in technical subjects.

Green Haldex

Environmental issues play a major role in Haldex’s sustainability work and environmental impact constitutes a specific section in the EU’s sustainability reporting. With eight production plants and a number of facilities for refurbishment of products, Haldex’s environmental management achieves noticeable effects.

All of Haldex’s production plants around the world comply with ISO 14001 requirements for their Environmental Management Systems as a minimum. Systematic programs and environmental policies are in place to use resources efficiently and eliminate waste. The environmental impact of all units is analyzed, resulting in a “Green Performance Map” for each facility. This is a survey 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 are 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, since they have the greatest impact on the environment. In 2018, an environmental committee was established that consists of representatives for all of the production plants, who jointly follow up targets and discuss improvements.

An equally important part of the environmental efforts for Haldex is product development. Environmental issues and sustainability are key parameters taken into account in the development process. An environmental life cycle assessment in an early stage of the project as a formal decision-making step when products are changed or redeveloped.

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.

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.

Haldex environmental policy (pdf) contains principles, our global environmental initiatives and includes the aspects that are of vital importance to Haldex and its stakeholders.

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.