Climate Change Data

Environmental Metrics

ESG Focus Areas

• Road Safety
• Employee Health and Safety
• Environmental Management
• Business Ethics and Integrity
• Supply Chain Sustainability

Environmental Achievements

• Reduced incident rate and severity rate in health and safety.
• Continued development of global environmental, health and safety management systems.

Social Achievements

• Revised health and safety targets aiming for zero accidents.
• Increased focus on health and safety in top management business reviews.
• 46% of workforce and 21% of senior management were women.

Governance Achievements

• Updated Code of Conduct.
• Implemented business conduct and ethics education plan.
• 100% completion of Code of Conduct training for all employees in the target group.

Climate Goals & Targets

Environmental Challenges

• Three fatal accidents occurred in 2018.
• Increasing production volumes leading to increased energy and water consumption and waste generation.

Mitigation Strategies

• Investigated root causes of accidents and took necessary measures.
• Continued development of global environmental management system and expertise.
• Integrated climate change and water risks into enterprise risk management framework.

Supply Chain Management

Supplier Audits: 158 sustainability audits in 2018

Responsible Procurement

• Standards of Business Conduct and Ethics for Suppliers (Supplier Code), included in Autoliv Supplier Manual (ASM).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (used as a reference, not fully compliant)

Certifications: ISO 14001 (89% of facilities), OHSAS 18001 (15% of facilities)

UN Sustainable Development Goals

• SDG 3: Good health and well-being

Road safety products save lives and prevent injuries.

Sustainable Products & Innovation

• Low-emission sealing system for curtain modules.

Environmental Metrics

ESG Focus Areas

• Saving More Lives
• A Safe and Inclusive Workplace
• Climate Action
• Responsible Business

Environmental Achievements

• 9% improvement in GHG emissions intensity compared to 2021
• 13% of total electricity consumption from renewable instruments (up from 1% in 2021)
• 90% reuse, recycling, and energy recovery of total waste reported (up from 89% in 2021)

Social Achievements

• Close to 35,000 lives saved and more than 450,000 injuries reduced in 2022
• Incident Rate of 0.32 and Severity Rate of 3.31 in 2022
• 99% of targeted employees conducted a Performance and Development Dialogue (PDD) with their managers in 2022
• Improvement in employee experience
• 18% women in senior management (up from 17% in 2021)

Governance Achievements

• 99% of target group employees completed Code of Conduct certification
• >95% of target group employees completed anti-corruption training
• 99% of target group employees completed antitrust training

Climate Goals & Targets

Environmental Challenges

• Industry-wide raw material cost increases and component shortages leading to volatile and unpredictable LVP
• Worst cost inflation in three decades
• Supply chain disruptions due to semiconductor shortages and the war in Ukraine
• COVID-19 pandemic

Mitigation Strategies

• Price adjustments to offset raw material cost inflation
• Cost control measures including footprint and capacity alignment
• Negotiations with customers for cost compensation
• Continuous improvements throughout the organization
• Smart Start Playbook for managing pandemic effects

Supply Chain Management

Supplier Audits: 98% of active direct material suppliers within audit scope underwent a sustainability audit

Responsible Procurement

• Supplier Code
• Supplier Manual
• Sustainability criteria included in pre-qualification audits
• Conflict minerals campaign

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Flooding
• Extreme heat

Transition Risks

• Decreased vehicle sales
• Increased prices for raw materials
• Stricter supplier requirements from OEMs

Opportunities

• Strong position among climate-progressive OEMs
• Increased operational energy and materials efficiency

Reporting Standards

Frameworks Used: GRI Standards (informative), UN Global Compact, EU Non-Financial Reporting Directive, SASB Auto Parts Sustainability Accounting Standard (references in Appendix)

Certifications: ISO 14001 (97% of manufacturing facilities), ISO 45001 (71% of production facilities)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 16 (Peace, Justice, and Strong Institutions)
• SDG 17 (Partnerships for the Goals)

Autoliv's core business and sustainability work contribute to the realization of these SDGs through life-saving products, climate action, supply chain sustainability, and stakeholder engagement.

Sustainable Products & Innovation

• Products with lower weight and higher content of recycled materials

Environmental Metrics

ESG Focus Areas

• Saving More Lives
• A Safe and Inclusive Workplace
• Climate and Circularity
• Responsible Business

Environmental Achievements

• Reduced GHG emissions from own operations by 17% year-over-year
• Increased use of renewable electricity from 13% in 2022 to 23% in 2023
• Improved operational energy intensity by 3% compared to 2022
• Increased reuse, recycling and energy recovery of total waste to 91% (from 90% in 2022)

Social Achievements

• Products saved 35,000 lives and reduced more than 450,000 injuries in 2023
• 99% of targeted employees conducted a Performance and Development Dialogue (PDD) with their managers
• 96% of senior and mid-level management trained in unconscious bias
• 98% of employees completed Speaking Up e-learning, 97% of managers completed additional training

Governance Achievements

• 93% of target group employees completed Code of Conduct certification
• 98% of target group employees completed antitrust training
• 99% of active direct material suppliers within audit scope had undergone a sustainability audit

Climate Goals & Targets

Environmental Challenges

• High inflationary pressure on costs for labor and energy
• Volatile and unpredictable Light Vehicle Production (LVP)
• Late changes to call-offs with short notice from global car manufacturers
• Supply chain disruptions due to global trade system challenges (shortages, wars, natural disasters, geopolitical tensions)

Mitigation Strategies

• Successfully negotiated price adjustments
• Optimized footprint (footprint optimization is particularly focused on Europe, with consolidations in Germany, France and Sweden and planned site closures in the UK, Italy and the Netherlands)
• Implemented structural cost reductions
• Built a cost-and capital efficient supply chain which at the same time is resilient, adaptive and sustainable
• Improved change management

Supply Chain Management

Supplier Audits: 99% of active direct material suppliers within audit scope underwent a sustainability audit

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Sourcing Requirements
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Flooding
• Extreme heat

Transition Risks

• Decrease in overall vehicle sales
• Increasing prices for raw materials
• Stricter supplier requirements from OEMs

Opportunities

• Strong position among climate-progressive OEMs
• Increased operational energy and materials efficiency

Reporting Standards

Frameworks Used: UN Global Compact, SASB Auto Parts Sustainability Accounting Standard, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: EY (limited review for Scope 1+2 emissions)

UN Sustainable Development Goals

• SDG 3
• SDG 11
• SDG 17
• SDG 9
• SDG 13
• SDG 12
• SDG 7
• SDG 8
• SDG 5
• SDG 16

Autoliv's core business and sustainability work contribute to the realization of several UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Products with lower weight and higher content of recycled non-ferrous metals and low-carbon polymers

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Supply Chain Sustainability
• Employee Well-being
• Business Ethics

Environmental Achievements

• 88% of production facilities externally certified to ISO 14001 in 2020
• Implemented energy-saving initiatives leading to GHG emission and energy use reduction
• Innovated lower-weight products reducing carbon footprint
• Working with suppliers to increase use of bio-based and recycled materials

Social Achievements

• Commitment to zero accidents with a target incident rate of 0.50 and severity rate of 5 by 2022
• 100% of employees trained on anti-corruption and antitrust issues
• Sustainability audits of all direct material suppliers by 2021 (three-year audit cycle)
• 95% of suppliers responding to a conflict minerals survey by 2022
• Development of safety products tailored to the needs of different populations (women, elderly, children), including vulnerable road users

Governance Achievements

• Formalized Sustainability Commitment structured in four pillars with quantitative targets
• Board reviews compliance reports periodically; business conduct and ethics are standing items on Board meeting agendas
• Annual Code of Conduct certifications for all managerial-level and higher employees

Climate Goals & Targets

Environmental Challenges

• Climate change (road transport is a major contributor to GHG emissions)
• High rate of road traffic injuries, particularly in low- and middle-income countries
• ESG controversies (e.g., EU antitrust fine in 2019)
• Managing the environmental impact of raw materials in the automotive sector (plastics, steel, textiles)

Mitigation Strategies

• Commitment to carbon neutrality in own operations by 2030 and net-zero GHG emissions across the supply chain by 2040
• Joining the Business Ambition for 1.5°C
• Enhanced global compliance training and preventive measures to avoid anti-competitive behavior
• Implementing a global environmental management system (EMS) aligned with ISO 14001:2015
• In-house life cycle assessment tool to reduce environmental footprint
• Using recycled plastics, bio-based materials, and lower-carbon steel
• Supplier Code of Conduct ensuring compliance with social, ethical, and environmental standards

Supply Chain Management

Supplier Audits: Sustainability audits of all direct material suppliers by 2021 (three-year audit cycle)

Responsible Procurement

• Supplier Code of Conduct
• Conflict minerals approach based on OECD’s Conflict-Free Smelter Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ICMA’s Green Bond Principles 2021, ICMA’s Social Bond Principles 2021, ISO 14001:2015, ISO 45001, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: External auditor will verify tracking and allocation of funds, and indicators used to report on environmental and social benefits

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 9
• SDG 11
• SDG 13

Eligible Categories contribute to these SDGs through improved road safety, increased renewable energy use, energy efficiency improvements, sustainable transportation systems, and climate change mitigation.

Sustainable Products & Innovation

• Lower-weight products
• Products with increased use of recycled and bio-based materials