2019 Sustainability report 1
SUSTAINABILITY REPORT 2019 WORDS FROM ANDERS HEDI
N, CEO The sustainability topic is one of the most important aspects in the efforts made by Hedin Bil to take into account all the stakeholders of the Group. In 2019, sales of new cars was volatile over the year, as there are changes in drive trains and updated tax and emission regulations. The Swedish market recovered during the last two quarters after an initial decline, mainly because of the Bonus Malus regulations in Sweden and the anticipated change in calculation of vehicle tax that marked the new year of 2020. In Norway we saw a mixed development where the sale of electric vehicles increased significantly whilst the market for fossil fueled cars continued to drop. The Belgian market saw a general decline throughout the year whilst our facilities grew in absolute numbers, mainly because we market what is now the leading premium brand in Belgium. When summarized, 2019 was somewhat of a year in waiting leading up to the wide range of plug-in electric hybrids (PHEVs) and fully electric cars (BEVs) that will be launched in 2020. In our sustainability efforts our progress is built on the commitment of our coworkers. The efforts made towards our energy efficiency project keeps generating great savings, especially in the use of electricity and district heating. Some 20 additional sites were added to the project during the year. All purchased electricity in Sweden and Norway now comes 100 % from renewable sources. The recycling of materials increased significantly which is also a result of our ambitious environmental targets. Much like the previous years, we notice an increase in the offer and sales of PHEVs and BEVs. Our total efforts to limit the environmental impact is partly offset by the increase in work-related travels. This is an area for improvement in the upcoming year. We are proud of the fact that our commitment towards technical high schools with automotive focus and professional education has contributed to the providing of a great amount of practice and apprentice positions on our different sites. We have also been able to hire many of these talented individuals. Our investments in digital projects have resulted in a more efficient operational control, whilst the transformation also demands more from our management and coworkers. We see the importance of continuous work with educational efforts to make sure that our personnel resources are up to date with the latest development in products and services, which improves their ability to carry out the daily tasks at hand. We have intensified our work with bringing down our employee turnover rate. We are aware of the tough competition for workforce and the general shortfall of experienced personnel within the industry. Our goal is that the day-to-day routines are defined by attention to the environment, health and quality whilst making sure that our workplaces are perceived as empowering and stimulating for all coworkers. It is of utmost importance for us that we are clear and predictable in our joint work together with management. In the end, it is on local sites that we can make a real difference. Our exiting sustainability journey continues, and I am convinced that it contributes to even more positive results. Anders Hedin 5