Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customers
• People
• Environment
• Business Partners

Environmental Achievements

• CO2e GHG emissions: 28,295.26 metric tons (excluding Asian part of VNBS joint venture)
• Energy use: 102.1 GWh (excluding Asian part of VNBS joint venture)
• Waste total: 3,968.6 tons (excluding Asian part of VNBS joint venture)
• All Veoneer’s manufacturing facilities and 66% of the joint venture facilities are externally ISO 14001 certified.

Social Achievements

• Established an Engineering Career Progression Program.
• Developed an anti-discrimination program (#MeToo) at Veoneer Vårgårda in Sweden.
• Achieved 100% completion of Code of Conduct and Compliance trainings for all employees in the target group.
• Incident rate of 1.81 (reportable injuries per 200,000 employee hours of exposure), below target of 2.0
• Voluntary turnover for direct labor was 8.7% and for indirect labor 8.3%.

Governance Achievements

• 100% of targeted employees submitted Code of Conduct certifications.
• 92% submission rate for Conflict of Interest disclosure.
• 100% completion rate of Anti-Corruption and Antitrust trainings.

Climate Goals & Targets

Environmental Challenges

• Cyber security risks related to active safety products and intellectual property.
• Supply chain exposure to natural hazards (floods, wind, earthquakes).
• Maintaining high quality standards across global operations and supply chain.

Mitigation Strategies

• Established an end-to-end cyber security protection program.
• Implemented specific flood emergency response plans for high-risk locations.
• Developed and patented a blockchain-based technology to ensure software integrity.
• Include natural hazard analysis in Supplier Risk Management initiative.
• Monthly performance reviews against key quality targets across all facilities.

Supply Chain Management

Supplier Audits: 30 direct materials suppliers audited in 2019

Responsible Procurement

• Pre-qualification audits for new suppliers
• Social Responsibility Audits
• Project Management Audits
• Process Audits
• Veoneer Supplier Manual (VSM)
• Conflict Minerals Policy
• Responsible Minerals Assurance Process (RMAP)

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Wind
• Earthquakes

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (guidelines used for information, not full compliance), Directive 2014/95/EU

Certifications: ISO 14001 (for manufacturing facilities and 66% of joint ventures)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3: Good health and well-being

Reducing global deaths and injuries from road traffic accidents.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• People
• Customers
• Business Partners
• Environment
• Climate

Environmental Achievements

• Reduced CO2e GHG emissions in metric tons from 28,295 in 2019 to 22,981 in 2020 (Scope 1 and 2).
• 100% of manufacturing facilities are ISO 14001 certified (90% in 2019).
• Zero landfill waste in Sweden.

Social Achievements

• Incident rate declined from 1.81 to 1.29 and the severity rate declined from 22.8 to 8.01 (per 200,000 employee hours of exposure).
• 98.5% annual performance dialog completion rate.
• Voluntary turnover for direct labor was 10.8% (8.7% in 2019) and for indirect labor 8.6% (8.3% in 2019).

Governance Achievements

• 100% completion rate for Code of Ethics Certification, Anti-Corruption Training, Anti-Trust Training, and Compliance Training.
• 98% submission rate for Conflict of Interest Disclosure (92% in 2019).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic and severe weather conditions.
• Meeting customer expectations on product safety.
• Cybersecurity risks.
• Limited opportunity to influence decision-making at the point-of-purchase.
• Waste of resources due to lack of recycling.

Mitigation Strategies

• Sustainability audits and a risk-based approach to supplier selection.
• Maintaining high ethical business practices and conflict minerals management.
• Focus on high quality, efficiency, and attracting and retaining talent.
• Enhanced logistics efficiency, optimized packaging, and use of artificial intelligence.
• Close collaboration with customers to achieve the safest solution with limited environmental footprint.
• Continuous improvement of product and systems’ safety performance and limiting environmental impacts.
• Cybersecurity management.
• Reduction of scrap and high-quality products.
• Following End-of-life directives for the automotive industry and customer and other legal requirements.

Supply Chain Management

Supplier Audits: 53 direct materials suppliers audited in 2020 (30 in 2019)

Responsible Procurement

• Supplier Code of Ethics
• ISO 14001 certification for top suppliers
• Social Responsibilities Audits
• Project Management Audits
• Process Audits
• Conflict Minerals policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage and disruptions to transportation, supply chain, business facilities, and employee safety.

Transition Risks

• Regulatory changes and market shifts related to climate change.

Opportunities

• Development of energy-efficient products and systems.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001 (manufacturing facilities)

Third-party Assurance: Veoneer Internal Audit

UN Sustainable Development Goals

• 3 (Good Health and Well-being)

Reducing road traffic fatalities through innovative safety products and solutions.

Sustainable Products & Innovation

• Smarter and lighter products with limited need for cooling.
• 77 GHz Radar (45% fewer components, 40% less weight, 30% smaller housing).
• Mono Vision camera (fewer components, 30% weight reduction, 22% smaller, 3% scrap reduction).
• Thermal Sensing, Night Vision (50% smaller and 50% weight reduction).

Awards & Recognition

• Veoneer China awarded partner of the 2020 UN Decade of Action for Road Safety.

Environmental Metrics

ESG Focus Areas

• Traffic safety
• Climate change
• People
• Business partners
• Environment

Environmental Achievements

• Reduced incident rate from 1.29 to 0.62 and severity rate from 8.01 to 3.75 per 200,000 employee hours of exposure.
• Improved product design for less environmental impact (less weight, components, power consumption).

Social Achievements

• Improved employee onboarding satisfaction (3.85 to 4.33 on a scale of 1 to 5).
• 87% employee completion rate for the 2021 performance management cycle (target was 80%).
• 100% compliance in 48 Social Responsibility Audits.

Governance Achievements

• Implemented a Cyber Security Management System and Software Update Management System one year ahead of UNECE regulation.
• 100% of targeted employees completed annual Code of Ethics certification.
• 96% submission rate for Conflict of Interest disclosure.

Climate Goals & Targets

Environmental Challenges

• Global chip shortage affecting supply chain.
• COVID-19 pandemic impacting operations and transportation.
• Extreme weather events posing risks to supply chain and operations.

Mitigation Strategies

• Supply Constraint Management process (cross-functional collaboration, open communication).
• COVID-19 crisis management teams monitoring situation and implementing protective measures.
• Addressing known property risks and protecting facilities against natural hazards.

Supply Chain Management

Supplier Audits: 48 Social Responsibility Audits completed (100% compliance)

Responsible Procurement

• Supplier Code of Ethics.
• Supplier Code of Conduct.
• Veoneer Supplier Manual.
• Sustainability topics included in self-assessment.
• Tracking of ISO 14001 certifications.
• Carbon emissions survey for direct materials suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms, fires, heavy rains).

Transition Risks

• Regulatory changes.
• Market shifts.

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI Core option

Certifications: ISO 14001 (manufacturing facilities and some tech centers), IATF16949:2016

Third-party Assurance: Veoneer Internal Audit

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 13 (Climate Action)

Products improve traffic safety; innovation in sustainable technologies; ambitious climate targets.

Sustainable Products & Innovation

• New generations of sensors and software with enhanced safety and limited environmental impact.

Awards & Recognition

• FM Global Highly Protected Risk Award (Southfeld tech center).

Environmental Metrics

ESG Focus Areas

• Traffic Safety
• Climate Change
• Employee Well-being
• Ethical Business Practices
• Supply Chain Sustainability

Environmental Achievements

• 15% reduction of carbon emissions target by 2025
• Reduced Scope 1 and Scope 2 emissions from 22,514 tCO2e in 2021 to 18,049 tCO2e in 2022
• Southfield tech center earned ENERGY STAR® certification

Social Achievements

• Severity rate reduced from 3.75 in 2021 to 2.1 in 2022
• Incident rate remained low at 0.88
• Launched digital coaching initiative
• Launched tailored executive leadership program in partnership with INSEAD
• Academic collaboration program with Indian Institute of Science, Bengaluru

Governance Achievements

• Implemented Cyber Security Management System and Software Update Management System ahead of UNECE regulation
• 100% of targeted employees completed annual Code of Ethics certification
• 100% submission rate for Conflict of Interest disclosure

Climate Goals & Targets

Environmental Challenges

• Chip shortages
• Logistics challenges
• Lingering effects of the Covid-19 pandemic
• Extreme weather events impacting supply chain and operations
• Climate change risks

Mitigation Strategies

• Well-proven Supply Constraint Management process
• Close collaboration with suppliers
• Risk-based approach to supplier selection
• Sustainability audits
• Focus on property loss prevention and protection against natural hazards
• Ambitious carbon reduction targets
• Sustainable transportation initiatives

Supply Chain Management

Supplier Audits: 27 Social Responsibility Audits completed in 2022

Responsible Procurement

• Supplier Code of Conduct
• ISO 14001 certification for suppliers
• Conflict Minerals policy
• Sustainability survey targeting Scope 3 suppliers
• Logistics optimization project

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms, fires, heavy rains)

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Core option

Certifications: ISO 14001 (manufacturing facilities and some tech centers), IATF 16949:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Veoneer's products contribute to road safety (SDG 3); innovation in sustainable technologies (SDG 9); resource efficiency and waste reduction (SDG 12); and carbon emission reduction targets (SDG 13).

Sustainable Products & Innovation

• Smaller, lighter products with limited need for cooling

Awards & Recognition

• ENERGY STAR® certification (Southfield tech center)

Environmental Metrics

ESG Focus Areas

• Sustainable Mobility
• Climate Action
• Safe & Healthy Workplace and Supply Chain
• Ethical Business

Environmental Achievements

• All manufacturing facilities ISO 14001 certified
• Year-on-year waste reduction
• No significant spills or fines

Social Achievements

• Onboarding survey satisfaction of 4.3 (out of 5)
• Two cohorts of leaders graduated from INSEAD Executive Leadership program
• 12 engineers graduated from Veoneer Romania software academy

Governance Achievements

• 100% Annual Code of Ethics Certification
• 99% completion of Code of Conduct and Compliance trainings
• 100% submission rate for Conflict of Interest disclosure

Climate Goals & Targets

Environmental Challenges

• Chip shortages
• Logistics challenges
• Lingering Covid-19 epidemic effects
• Extreme weather events impacting supply chain
• High physical stress level due to chip shortages and change of ownership

Mitigation Strategies

• Supply Constraint Management process (cross-functional collaboration, open communication)
• Focus on stress reduction and employee support
• Logistics tool implementation to optimize supply chain
• Routing maritime shipments through Le Havre instead of Hamburg (France)
• Carrier selection based on sustainability metrics (DHL's GOGREEN program)

Supply Chain Management

Supplier Audits: 23 Social Responsibility Audits completed (100% compliance)

Responsible Procurement

• Supplier Code of Conduct
• ISO 14001 certification for top 20 suppliers
• Compliance with GADSL, ELV, EU REACH, and other legal requirements
• Conflict Minerals policy

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions impacting supply chain and operations

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI (Core option), European Sustainability Reporting Standards (Final Drafts)

Certifications: ISO 14001 (manufacturing facilities and one tech center), ISO 45001 (France manufacturing facility; aiming for Canada and China by end of 2024)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Scalable SC3 platform (reduces waste and makes safety affordable)

Awards & Recognition

• Not disclosed