Climate Change Data

Haldex Aktiebolag

Climate Impact & Sustainability Data (2020, 2021, 2022)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:30,324 tonnes CO2 (production sites)
Carbon Intensity:1.56 kg CO2 per unit (2020)

ESG Focus Areas

  • Safety
  • Ethics
  • Environment
  • Human Resources

Environmental Achievements

  • Reduced carbon dioxide emissions from production sites by 19% (37,502 tonnes in 2019 to 30,324 tonnes in 2020).
  • Improved material use efficiency to 93.3% (from 94.1% in 2019).

Social Achievements

  • 89% of employees trained in the Code of Conduct (target: 100%).
  • 67% of vacancies filled with internal candidates (target: at least 30%).
  • Implemented 84 measures to mitigate COVID-19 impact on employees in Mexico and Brazil, maintaining operations and building trust.

Governance Achievements

  • Completed 100% of investigations regarding breaches of the Code of Conduct.
  • Implemented a whistleblower hotline, receiving and investigating 11 complaints.

Climate Goals & Targets

Long-term Goals:
  • Contribute to a world with a better traffic environment and safer vehicles.
Medium-term Goals:
  • Achieve an adjusted operating margin of 10% in 2022 (excluding investments in new technology).
Short-term Goals:
  • Reduce work-related accidents and incidents.
  • Minimize unethical and unlawful behavior.
  • Reduce scrap and increase reuse and recycling.
  • Further reduce consumption and use more sustainable electricity.

Environmental Challenges

  • COVID-19 pandemic led to a dramatic decline in demand for new trucks and trailers, mainly in North America and Europe.
  • Loss of standard position with one large truck OEM in North America.
  • Supply chain disruptions due to COVID-19.
  • High cost base historically.
Mitigation Strategies
  • Intensified sales to the trailer segment and aftermarket.
  • Launched extensive short- and long-term savings programs to improve profitability and financial stability.
  • Completed production optimization programs, including closing production in Heidelberg, Germany and moving production from Blue Springs, USA to Monterrey, Mexico.
  • Private placement of SEK 157m to strengthen financial position.
  • Strategic review to focus resources on future investments with best potential.

Supply Chain Management

Responsible Procurement
  • Code of Conduct for suppliers.
  • Prioritization of local suppliers.
  • Sustainability screening and certification requirements to ISO 14001.

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products (e.g., electromechanical brakes).

Reporting Standards

Frameworks Used: UN Sustainable Development Goals, UN Universal Declaration of Human Rights, UN Global Compact, International Labor Organization Declaration on Fundamental Principles and Rights at Work, EU’s sustainability areas, OECD Guidelines for Multinational Enterprises

Certifications: ISO 14001

Third-party Assurance: NQC (for sustainability surveys)

Sustainable Products & Innovation

  • Electromechanical braking system (EMB)
  • Next generation electronic brake control system for trailers (EB+4.0)
  • Air Disc Brake (ADB) ModulT platform

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:9,416 tonnes CO2 (Scope 1 and 2)
Scope 3 Emissions:26,627 tonnes CO2
Carbon Intensity:1.61 kg CO2 per unit

ESG Focus Areas

  • Safety
  • Ethics
  • Environment
  • Employees

Environmental Achievements

  • CO2 neutral for scope 1 and 2 by 2025 (target set)
  • Fourth generation of Electronic Brake System: 2 kg weight reduction
  • Electromechanical brake: up to 90 percent less energy needed compared to conventional air braking system
  • Increased material efficiency from 93 to 97 percent (target)

Social Achievements

  • 100% of employees trained in the Code of Conduct
  • Improved employee safety initiatives (behavior-based safety)
  • Implementation of a weekly pulse survey for employee feedback
  • Community involvement initiatives (scholarships, road safety programs)

Governance Achievements

  • Strengthened global risk management process
  • Improved internal control processes
  • Long-term incentive program for CEO

Climate Goals & Targets

Long-term Goals:
  • CO2 neutral for scope 1 and 2 by 2025
  • Achieve material efficiency of 97%
Medium-term Goals:
  • Achieve a sustainable operating margin above 10 percent
  • Achieve a net debt/equity ratio of less than 1.5
Short-term Goals:
  • Grow aftermarket sales and maintain share above 50 percent

Environmental Challenges

  • Supply chain disruptions due to material and component shortages (semiconductors)
  • Increased material and freight costs
  • Weaker market in Asia (particularly China)
  • COVID-19 pandemic impact
Mitigation Strategies
  • Price adjustments to offset increased costs
  • Structural cost reduction programs (SEK 300m savings since 2019)
  • Revised production planning approach
  • Strategic partnerships (FAST Group, ANAND Group)

Supply Chain Management

Supplier Audits: All new suppliers must be reviewed by NQC before being approved as suppliers. Existing suppliers are evaluated through planned audits.

Responsible Procurement
  • Code of Conduct for suppliers
  • Sustainability screening and certification requirements

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products (EMB)

Reporting Standards

Frameworks Used: UN Sustainable Development Goals, UN Global Compact, Science Based Targets initiative (SBTi)

Certifications: ISO 14001

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

Sustainable Products & Innovation

  • Electromechanical brake (EMB)
  • Fourth generation Electronic Brake System (EBS)

Awards & Recognition

  • Excellent Quality Management Award from Hino Motors

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:9,067 tCO2e/year
Scope 3 Emissions:26,848 tCO2e/year
Carbon Intensity:1.84 kg CO2e per unit

ESG Focus Areas

  • Safety
  • Ethics
  • Environment
  • Human Resources

Environmental Achievements

  • Reduced carbon dioxide emissions, Scope 1 and 2, to 9,067 tons CO2 (from 9,416 tons in 2021).
  • Improved material efficiency to 94.1% (from 95.0% in 2021).
  • Launched next generation of brake pads for Air Disc brakes, complying with new copper-free requirements.

Social Achievements

  • 100% of employees trained in the Code of Conduct.
  • 100% of investigated breaches of the Code of Conduct completed.
  • 0 supplier partnerships terminated due to breach of the Code of Conduct.
  • 7% improvement in employee satisfaction, exceeding industry benchmark.

Governance Achievements

  • Implemented a new Behavior Framework (4 C's) to support revised strategy.
  • All managers completed training on the new behavior framework.

Climate Goals & Targets

Medium-term Goals:
  • Significantly reduce scope 1 and 2 emissions over the next years.

Environmental Challenges

  • Higher purchase prices of raw materials and components, increased freight and energy costs.
  • Supply chain bottlenecks, especially for materials such as steel.
  • Weak Chinese market impacting sales in Region APAC.
  • Impairment of inventories.
  • Ongoing costs related to a development project for electromechanical brakes.
Mitigation Strategies
  • Price increases to customers (partially offsetting higher costs).
  • Implemented significant savings programs (workforce reductions, relocation of production, reduced travel and material savings).
  • Renegotiated agreements with suppliers where price clauses were not included.
  • Monitoring raw material market prices.
  • More cautious approach to assessment of development projects.

Supply Chain Management

Responsible Procurement
  • Code of Conduct for suppliers.

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products (e.g., electromechanical brakes).

Reporting Standards

Frameworks Used: UN Sustainable Development Goals, UN Universal Declaration of Human Rights, UN Global Compact, International Labor Organization Declaration on Fundamental Principles and Rights at Work, EU’s sustainability areas, OECD Guidelines for Multinational Enterprises, Science Based Targets initiative (SBTi)

Certifications: ISO 14001

Third-party Assurance: KPMG (for Scope 1 and 2 emissions)

Sustainable Products & Innovation

  • Electromechanical brakes (EMB)
  • Next generation EBS (EB+4.0)
  • ModulT air disc brakes