Volvo Group Environmental Data Report 2011

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VOLVO GROUP ENVIRONMENTAL DATA REPORT 2011

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ENVIRONMENTAL DATA 2010

Environmental impact of Volvo Group operations At the end of the year 2011, the Volvo Group had 69 majority-owned production plants around the world that are included in the environmental data reporting. In addition also some data from all Parts and Logistics facilities are included. The environmental impact of these facilities and the environmental programmes conducted by them vary depending on the nature of the operation concerned, the size of the plant, local conditions and the length of time the plant in question has belonged to the Volvo Group. The Volvo Group has since 1995 reported detailed environmental data as a supplement to firstly the Environmental Report and from 2002 also as an extension of the Annual Report, that is included in the information on Internet. The data reporting is based on the global environmental standard for production plants that was introduced in 2000 by Group management. The standard focuses on a number of key areas, such as use of chemicals, energy and water consumption, emissions to air and water, waste and noise, and also specifies minimum requirements for the organisation of environmental activities in accordance with Volvo’s environmental policies and strategies. Environmental management systems and environmental audits The implementation of environmental management systems improves the quality of our environmental programmes and helps to assure the quality of the reported data. Internal monitoring and control are important elements of this activity. Environmental audits are also carried out under the direction of the Group’s environmental auditor as a means of monitoring environmental activities. In addition, the auditor is responsible for the examination of environmental data. This is carried out as part of the normal plant audits and when reporting environmental data prior to the publication of the Group’s annual report. During the year 2011, besides more than 65 environmental audits under the certified environmental management systems installed in all Volvo Operations, 14 corporate environmental audits, most related to acquisitions and divestments were carried out. The audit programme for 2012 will follow the Group’s rolling plan for the periodic monitoring of environmental activities. However, priority will be given to auditing of acquired operations and to the operations, which begin to implement environmental management systems during the year. The work of implementing environmental management systems covers the whole value chain, including product development, purchasing, sales and service. By 31 December 2011, all Volvo production plants had been awarded ISO 14001 certification or similar (Mexico). The Volvo Group has an ongoing remediation program for old and new acquired properties that deals with any contaminations, for example soil and groundwater, which are, e.g., discovered in acquisition audits or in internal assessments. Contaminations discovered in refurbishment or rebuilding projects are dealt with immediately. Installations that pose the greatest risk for causing soil and groundwater contaminations, such as underground storage tanks and underground piping systems, have been targeted for rebuild in an internal directive focusing such installations.

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Consumption and emissions This supplement to the Volvo Annual Report for 2011 and to the Volvo Group Sustainability Report for 2011 contains information on annual consumptions and emissions for all of Volvo’s majority-owned plants worldwide. The charts show the figures for a ten year period, 2002-2011. For reference purposes, the figures are also plotted as a function of the Volvo Group’s net sales. Individual plant data are plotted for the years 2007-2011. Environmental data, which have not been verified by quality assurance, are not included in the report. For this reason individual figures from some plants have been excluded. Due to the recession 2009 showed a dramatic decrease in production figures and we can see that the 2010 figures show that the recovery has been quite fast although we are not back in “normal” figures yet. The Volvo Group net sales from Industrial Operations was 303.6 Billion SEK 2011, an increase from 2010 with 46,2 BSEK or almost 18%. The environmental data figures show similar increase. Energy related indicators Many of the parameters in the data report refer to environmental impact from the use of energy in heating and production processes. The operations in Skövde, Venissieux and Hagerstown are large energy users, with ca 20% of the total energy consumption. Emissions of carbon dioxide, nitrogen oxides, and sulphur oxides are dependent on the fuels used. Energy consumption and carbon dioxide emissions Efficient energy utilisation means both reducing costs and lowering emissions of atmospheric pollutants, especially of carbon dioxide, but also of other substances (see below). In 2011, the Volvo Group’s energy consumption totalled 2,471 GWh, an increase of 156 GWh compared with 2010. Emissions of carbon dioxide decreased, from approximately 279,000 tonnes to approximately 255,000 tonnes. Relative to net sales, both energy consumption and CO2 emissions decreased. The energy use increased from 2,315 GWh to 2,471 GWh, an increase with 156 GWh or by ca 7%. The change to other energy sources, where available and possible is on going. The decrease of CO2 emissions, while energy use is increasing, is showing this. Emissions of sulphur dioxide and nitrogen oxides The emissions of sulphur dioxide and nitrogen oxides are continuously reduced by the use of low-sulphur fuels and/or purification equipment. Emissions of sulphur dioxide remained the same as in 2010, 34 tonnes. The availability of low sulphur fuel will determine the emissions. Nitrogen oxides emissions decreased from 719 to 474 tonnes, mainly due to a more normal product testing. Consequently relative to net sales, emissions of nitrogen oxides decreased. These emissions are very much dependent on the use of energy and amount of product testing and the big changes in nitrogen dioxide emissions were expected. Emissions of solvents (VOCs) The continuous reduction of emission of solvents from painting and surface treatment processes is a priority issue and is subject to statutory control in most countries. In 2011, solvent emissions totalled 2554 tonnes, representing an increase of 859

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tonnes from 2010, or by 12%. Relative to net sales, the emissions of solvents decreased. The main reason for the change the last two years is the fast production increase in our Asian markets where the use of solvent borne coating systems are dominating. Water consumption During the year, the total water consumption increased from 7,519, 000 m3 to 7,970,000 m3 an increase by 451,000 m3, or by 6%. This is less than the production volume uptake and thus relative to net sales, the water consumption decreased. Waste Waste is usually classified as hazardous or non-hazardous, but the definitions vary from country to country and changes over time. Even if our total amount of waste decreases over time these changes in definitions have caused an increase in the amount of waste classified as hazardous during past years. 2009 was a break in this trend with a big reduction but the volumes picked up again in 2010 and continued in 2011. The quantity of hazardous waste increased in 2011 to the total amount of 25,455 tonnes, which is an increase by 11%. However this is less than the production volume uptake and thus relative to net sales, the quantity of hazardous waste decreased. Emissions to water All of Volvo’s majority-owned plants have either installed their own treatment facilities or discharge their effluents to external treatment plants. More and more plants are also installing closed process water systems in order to reduce the amount of water used and amount of emssions. This is often done at major change of installations, like at the Umeå plant recently, in the new paint shop project. The internal production standard specifies maximum permissible values for emissions of various metals, as well as treatment requirements for organic impurities. Chemicals usage To restrict the use of chemicals, the Volvo Group has, since 1996, maintained a ‘black list’ of prohibited chemicals and a ‘grey list’ of products whose use must be limited. To facilitate the choice of chemicals, Volvo maintains a database (MOTIV), containing detailed information on over 6,000 chemical products. At present there is strong focus in preparing for the European Reach legislation. Volvo is mainly a down stream user of chemicals and relies upon the suppliers of chemicals to report according the new legislation. To facilitate handling of the information about the chemicals, delivered by the supplier in material safety data sheets (MSDS), Volvo has developed an IT system to keep track of the information. Noise Noise levels from most Volvo plants are either extremely low or non-existent. The target is to ensure that the external noise level measured at the nearest residential property does not exceed 60 dB(A).

Inge Horkeby Environmental Auditor, AB Volvo

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Global environmental standard for production plants

“We shall lead the field in terms of low environmental impact and high resource efficiency wherever in the world we operate”.

Some headlines in the standard: Minimum requirements, chemicals • To survey the chemicals used in production • To have a process for health and environmental assessment of all chemical products used on site.

• To implement the requirements of the black list (Volvo Std. 100-0002) • To work actively to replace the chemicals on the grey list (Volvo Std. 100-0003) Minimum requirements, water • Set up of a water balance Process water with an organic content must be treated chemically or by an equivalent method. The feasibility of introducing further treatment should be examined. • Concentrations of metal impurities in water discharged from Volvo production plants must not exceed the following values (mg/l): Cadmium 0.1, mercury 0.05, chromium (total) 0.5, chromium (hexavalent) 0.1, lead 0.1, nickel 0.5,

silver 0.1, tin 2, copper 0.5, free cyanide 0.2, halogens (F, Cl, Br, I) 0.1 • Process water with an organic content must be treated chemically or by an equivalent method. The feasibility of introducing further treatment should be examined.

• Set up a water balance and a management plan addressing sustainable usage of water resources Minimum requirements, energy and CO2 • To survey all major energy-consuming processes • To implement efficiencies in energy utilisation on a continuous basis • To focus energy usage in new projects Minimum requirements, waste • To sort and quantify all waste at source • To implement measures to: - reduce the quantity of waste - to increase reuse, material recycling and energy recovery - to reduce the quantity of waste consigned to landfill Minimum requirements, sulphur and NOx • No oil and coal used for heating purposes • The sulphur content of the fuel must not exceed: Oil 1%, natural gas 0%, coal 1%, biomass 0.05% • Nitrogen oxide emissions must not exceed: natural gas 70 mg/MJ, other fuels 100 mg/MJ, TO 100 mg/m3

TO = Thermal oxidiser (combustion chamber) Minimum requirements, organisation • To define environmental goals and measures

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• To implement an environmental management system • To assess the environmental impact of new projects and to examine ways of reducing such impact

• To apply the Group’s environmental requirements to suppliers and contractors Minimum requirements, (VOCs) • To prepare a plan for handling solvents • To work continuously to reduce solvent emissions Minimum requirements, noise • To measure noise at property boundary • To measure at the premises of immediate neighbours • Noise at nearest residential property must not exceed 60 dB(A)

Environmental data for Volvo production plants Volvo follows about 40 indicators in order to get the view of the total environmental impact of the operations. The complete indicator data set has been gathered for a very long time, since 1994, giving us valuable consecutive data sets. In order to give clearer figures we have here made the series shorter and give you the last 10 years data for comparison. In this section you will get both the total impact from the group for the last 10 years and the individual impact from the different sites for the last 5 years. For reference purposes the figures are also plotted as a function of the Volvo Group’s net sales. The indicators are: Energy, GWh, Carbon dioxide, tonne, Water, m3, NOx, tonne, SOx, tonne, Solvent emissions, tonne, Hazardous waste, tonne

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Volvo also follows three comprehensive impact indicators, Greenhouse effect (GWP), Acidification potential (SO2 equivalents) and Ozone depletion potential (ODP). The definition used is indicated in each figure. GWP= Global Warming Potential

The chart shows the combined contribution to the greenhouse effect of CO2, CFC compounds and halons, expressed in tonnes of CO2 equivalents with the aid of GWP factors (GWP 100) (IPCC, report from WG1 2007). CO2 has a factor of 1, CFCs (CFC 12) a factor of 10,900, HCFCs (HCFC 22) a factor of 1,810 and halons (halon 1301) a factor of 7,140. CO2 emissions are based on the quantity of fossil fuels (oil and gas) used in Volvo’s own plants.

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Acidification potential (SO2 equivalents)

Combined contribution to acidification of SO2 and NOx, expressed in tonnes of SO2 equivalents with the aid of acidification potential factors. SO2 has a factor of 1 and NOx (NO2) a factor of 0.7.

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Ozone depletion potential (ODP).

The figure shows the contribution of CFCs and halons to ozone depletion, expressed in tonnes of CFC11 equivalents with the aid of ODP factors. CFCs (CFC 12) have a factor of 0.82, HCFC’s (HCFC 22) a factor of 0.04 and halons (halon 1301) a factor of 12.

Individual data from Volvo Group operations. Data for the last 5 years are presented for each plant below. Please observe that the data is presented with different conversions in order to fit the figures. (The full height of a bar in a figure equals to 100units). The height of a bar for an indicator for one plant can not directly be compared to the height of the same indicator for another plant since the conversion factor can be completely different.

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Plant Consumption Emissions Waste Produc

tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#1

Volvo Aero Corporation

Trollhättan, Sweden

Operations: Production and

maintenance of engines and

gas turbines.

Units: eq aircraft engines

#2


Kongsberg, Norway

Operations: Production of

aircraft

engine components

Units: Engine components

#3


Newington, USA

Operations: Aircraft engine

spare parts and maint. of

commercial aircraft engines.

Units: Maint. of engines com

#4


Boca Raton, USA


spare parts and

maintenance of commercial

aircraft engines. Plant sold

2010.

#5


ACAB Linköping, Sweden


spare parts and

maintenance of commercial

aircraft engines.

Units: Production hours

14


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#6

Volvo Bus Corporation

Borås, Sweden

Operations: Assembly of bus

chassis

Units: Bus chassis

#7


Säffle, Sweden


bus bodies; assembly of

buses.

Units: Buses

#8


Uddevalla, Sweden


bus frames

Units: Bus frames

#9


Hosakote, India



buses.

Units: Buses

#10


(MASA)

Mexico City, Mexico


complete (bodied) buses

Units: Buses

15


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#11


(Nova BUS)

Plattsburg, USA



Units: Buses

#12


(Nova BUS)

St-Eustache, Canada



Units: Buses

#13


(Nova BUS)

St-François-du-Lac, Canada


bus chassis

Units: Bus chassis

#14


(Prévost)

St Claire, Canada

Operations: Production

buses

Units: Vehicles

#15


Wroclaw, Poland


buses

Units: Vehicles

Comments: 2006-2009 also

includes Volvo CE

production

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tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#16


Shanghai, China

Operations: Final assembly

of buses

Units: Buses

#17


Xian, China



buses.

Units: Buses estimated values 2008,2010

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tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#18

Volvo Construction Equip.

Eskilstuna, Sweden


wheel loaders, excavators,

comp.

Units: tonne, 2010- pcs

#19


Hallsberg, Sweden


cabs; components

Units: tonne

#20


Arvika, Sweden


wheel loaders, components

Units: tonne

#21

Volvo Construction

Equipment

Braås, Sweden


haulers, components

Units: units

#22

Volvo CE, Compact Equip.

Belley, France


small excavators and wheel

loaders, components

Units:units

18


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#23

Volvo CE (Compact Equip)

Creys, France

Operations: Components for

small excavators and wheel

loaders,

Units: Production hours

#24


Chang Won, South Korea


excavators, wheel loaders

Units: tonne

#25


Pederneiras, Brazil


wheel loaders and haulers

Units: units

#26

Volvo Construction

Equipment

Linyi, China

Operations: Assembly of

Excavators

Units: Product units

#27

Volvo Construction

Equipment

Shanghai, China


Excavators


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tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#28

Volvo CE, Compact Equip.

Konz-Könen, Germany


components; assembly of

light wheel loaders

Units: units

#29

Volvo Construction

Equipment, Road Machinery

Hameln, Germany

Operations:Road machinery


#30

Volvo Construction


Bangalore, India



#31

Volvo Construction


Shippensburg, USA



#32

Volvo Construction

Equipment

Wroclaw, Poland


wheel loaders, haulers

Units: units

20


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#33

Volvo CE, Tultitlan, Mexico


construction equipment

machinery

Units: units

#34

Volvo CE, Lingong, China


construction equipment

machinery

Units: units

21


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#35

Volvo Penta Corporation

Lundby, Gothenburg,

Sweden


diesel engines, engine

development and testing

#36


Vara, Sweden


diesel

engines

Units: Index

#37


Lexington, USA


marine engines, drives and

shield kits

Units: Engines, drives,

transmissions

#38


Chesapeake USA


marine engines

Units: Engines

Environmental management

system: 2002

#39


Lingang, China


marine engines

Units: Engines

Environmental management

system: 2002

22


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#40

Volvo Powertrain AB

Skövde, Sweden

Operations: Foundry; engine

production

Units: Truck engines

#41

Volvo Powertrain AB

Köping, Sweden


gearboxes

Units: Components

(gearboxes)

#42

Volvo Powertrain AB, Volvo

Truck Corporation,

Lundby, Gothenburg,

Sweden

Operations: Diesel engine

and truck development and

testing.

#43

Volvo Powertrain AB

Malmö, Sweden


turbines, development and

testing of turbines

Units: Turbines test

#44

Volvo Powertrain AB

Vénissieux-Saint-Priest


engines

Units: Diesel engines

23


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#45

Volvo Powertrain AB


Operations: Development of

engines

Units: na

#46

Volvo Powertrain

Hagerstown, USA

Operations: Engine and

transmission production

Units: Truck engines and

transmissions

#47

Volvo Powertrain AB

Hanyu, Japan


gearboxes

Units: Components

(gearboxes)

#48

Volvo Powertrain AB

Kounosu, Japan

Operations: Foundry

Units: Engine components

#49

Volvo Powertrain AB

Curitiba Brazil


engines

Units: Diesel engines

24


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#50

Volvo Powertrain

Legones, Villaverde, Spain


components

Units: Crankshaft

25


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#51

Volvo Logistics

Totals

Operations: Logistics

storage

Units: na

26


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#52

Volvo Parts

Flen, Sweden

Operations: Reconditioning

of truck and car engines

Units: Unit engines

#53

Volvo Parts

Middletown

Operations: Reconditioning

of truck engines and parts

Units: Total units

#54

Volvo Parts

Limoges ES


engines, gearboxes and

components

Units: Total units

#55

Volvo Parts

Totals excl Flen, Limoges,

Middletown

Operations: Parts storage

Units: na

27


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#56

Volvo Truck Corporation

Umeå, Sweden

Operations: Pressing, ass-

embly and painting of truck

cabs

Units: Truck cabs

#57


Tuve, Sweden


trucks; production of frame

members; painting of axles

Units: Trucks

#58


Ghent, Belgium


trucks

Units: Trucks

#59


Brisbane, Australia


truck cabs and engines;

assembly of trucks.

Units: Trucks

#60



Curitiba, Brazil


trucks, bus chassis

Units: Cabs

28


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#61


Bangalore, India


trucks, buses and trailers

Units: vehicles

#62

Volvo Truck Cooperation

Durban, South Africa

Operations: Asembly of

trucks

Units: Trucks

#63


Kaluga Russia


trucks

Units: Trucks

#64


Bangkok, Thailand


trucks

Units: Trucks

29


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#65

Renault Trucks


Operations: Development of

trucks

Units: n/a

#66

Renault Trucks

Blainville-sur-Orne

Operations: A = Pressing,

assembly and painting of

truck cabs; B = assembly

Units: Truck cabs,

#67

Renault Trucks

Bourg-en-Bresse


trucks

Units: Trucks

#68

Renault Trucks

Limoges Palais


engines, gearboxes and

components

Units: #

30


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#69

North American Trucks

New River Valley, USA


trucks

Units: Trucks

#70

North American Trucks

Macungie

Operations: Assembly and

painting of cabs; assembly

of trucks

Units: Trucks

31


tion Energy

Water

CO2

Solvents

NOx

SO2

Hazardous waste

Production units

#71

UD Trucks

Ageo, Japan


trucks, engines and

gearboxes

Units: vehicles

data=sum of all plants

Volvo Group Environmental Data Report 2011

Documents

nearest residential property

produc tion units

road machinery units

commercial aircraft engines

ozone depletion potential

consumption energy water

global environmental standard

production volume uptake