Shaping the Future of Mobility
Transportation Sustainability Report (Including HSE Data for 2005/06)
Contents
Foreword
22 Product Responsibility and Customer Orientation
4 Company Profile 10 Strategy, Policies and Management System 18 Stakeholder Dialogue
32 In Focus: Climate Change 34 The Environmental Impact of Production
Overview This report documents the major elements and activities of Bombardier Transportation’s sustainability management and social responsibility. In line with the fiscal business year, data-reporting covers the period ending January 31, 2006.
This report covers 42 locations under the control of Bombardier Transportation, with one or more production/service facilities, that have around 100 employees or more. Smaller sites of the Services and the Total Transit Systems divisions, mostly located on customer premises, as well as office locations are included in the health & safety statistics and may belong to the group of “certifiable” facilities (if > 150 employees). Provided they have more than 50 employees (150 until 2004), and they are not solely offices, they are also subjected to Legal Compliance Surveys. In preparing the report we took into consideration the 2002 Guidelines of the Global Reporting Initiative (GRI). The table on page 51 presents the degree to which the present report covers the GRI 3 (2006) indicators. This is Bombardier Transportation’s first Sustainability Report, although we published a Health, Safety and Environment (HSE) Report in 2005 based on data from the previous year. In addition, in compiling the present report we have benefited
from the cumulative environmental reporting experience of companies we acquired in the past. For our production plants in Germany (Aachen, Bautzen, Görlitz, Hennigsdorf, Kassel, Mannheim and Siegen) environmental statements according to the Eco-Management and Audit Scheme (EMAS) are available separately from our website (www.transport.bombardier.com > About us > Sustainable Mobility). The editorial deadline for this report is October 1, 2006. Our next sustainability and social responsi bility report is scheduled for 2008. An HSE report (data for civil year 2006) will be published in 2007. Regular sustainability reporting forms part of our commitment as a signatory of the International Association of Public Transport (UITP) Charter on Sustainable Development. Global Reporting Initiative (GRI) www.globalreporting.org Eco-Management and Audit Scheme (EMAS) www.ec.europa.eu/environment/emas
40 Responsibility for our Employees 46 A Responsible Citizen of the World
50 GRI Content Index
Wolfgang Tölsner Chief Operating Officer Executive Representative for HSE and Quality Bombardier Transportation
André Navarri President Bombardier Transportation
Foreword
“We seek to optimize the environmental performance of our vehicles and in this way support our customers in the achievement of their environmental objectives.”
Bombardier Transportation is pleased to present its first Sustainability Report. This report has been prepared taking into consideration the 2002 Global Reporting Initiative (GRI) guidelines. It follows on from the Health, Safety and Environment (HSE) Report published in 2005, and forms part of our voluntary commitment as a signatory to the International Association of Public Transport (UITP) Charter on Sustainable Development. Bombardier Transportation was the first rail vehicle manufacturer to subscribe to the charter in May 2003. As the global leader in rail technology, we strive to be profitable, while delivering our promise to customers for safe and competitive products, to be a preferred employer and to provide healthy and safe workplaces for all our employees. In addition, it is our goal to leave to the next generations a natural environment unspoiled by our industrial activities and products, to the greatest extent possible. Rail transport is generally considered to be one of the most ecologically sound means of motorized transport for people and goods. Working together with our major customers and research institutions worldwide, we seek to optimize the environmental performance of our vehicles and in this way support our customers in the achievement of their environmental objectives. This is a particular responsibility of our Engineering teams in cooperation with our Design for Environment expert network.
Foreword
When it comes to health and safety, our ultimate goal is to become entirely accident-free. With this commitment our manufacturing sites have considerably reduced their safety risks. The number of accidents and lost workdays decreased by a factor of 10 over the last five years, reaching world-class status at the end of 2005. All sites with more than 150 employees operate under HSE management systems and performance indicators that are tracked monthly. More than 90 % of our sites are externally certified according to the ISO 14001 standard and OHSAS 18001. These standards provide the foundation for legal compliance and continuous performance improvement. To ensure legal compliance, Bombardier Transportation subjects its sites to independent checks every three years. In Europe, legal compliance checks regarding the environment are covered by the European Eco-Management and Audit Scheme (EMAS) at several sites. As a global manufacturer and competitor we believe that we have an obligation to transfer our knowledge and best practice especially to the less-industrialized countries where we have a presence. This extends not only to local technology transfer and employment in the production of state-of-the-art products, systems and services, but also in line with our high HSE standards. We are proud to have been acknowledged by the United Nations Confer-
ence on Trade and Development (UNCTAD) for the HSE standards we achieved in the transfer of our locomotive propulsion technology to India. We will seek the same standards of excellence in our work with partners in the construction of the Gautrain mass transit system for Gautang Province, South Africa. Bombardier Transportation, as a part of Bombardier Inc. takes pride in designing, manufacturing and servicing products and systems that facilitate the sustainable mobility of people and goods. It is our continuous challenge to protect the health and safety of our employees, to improve the environmental performance of our activities and to apply a total life-cycle view in the design of our products. We consider this to be a fundamental social responsibility. We hope that the facts and data reported in the following pages will allow you to gain a better understanding of the commitment and progress we are making in environmental and social responsibility. Please feel free to comment or ask for more information, either by sending an e-mail to
[email protected] or by calling our Communications & Public Affairs department.
André Navarri
Wolfgang Tölsner
Company Profile
The Bombardier Transportation Group is a unit of Bombardier Inc., a global corporation headquartered in Canada. A world leader in innovative transportation solutions, Bombardier Inc. is structured around two almost equal-sized activities: Aerospace and Transportation. From its early beginnings in the Eastern Townships of Quebec, the company’s story spans over six decades of growth and expansion. Today, some 55,800 people work for Bombardier Inc. worldwide and millions of people around the world use Bombardier products every day.
Company Profile
B
ombardier Transportation, headquartered in Germany, is the global leader in rail technology. Its comprehensive product portfolio includes the full range of passenger rail vehicles and total transit systems for airport, urban and mainline operation. This includes metros; regional and commuter trains; trams and light rail vehicles; electric and diesel single and double deck multiple unit trains; passenger coaches, locomotives and high speed trains; bogies; propulsion and controls as well as rail control solutions. Bombardier Transportation is one of the world’s largest providers of fleet services including full train and fleet maintenance, materials and logistics programs, the refurbishment, re-engineering and overhaul of vehicles and components and predictive asset manage ment and maintenance.
Bombardier Transportation entered the mass transit market in 1974 with the first contract for the metro system for the city of Montréal, Quebec. Over the years, its growth has been the result of internally generated international expansion and acquisition, culminating with the purchase of DaimlerChrysler Rail Systems GmbH in 2001. Today, Bombardier Transportation has a presence in over 60 countries with an installed base of over 100,000 vehicles worldwide.
The Bombardier Company Bombardier Inc. is a world-leading manufacturer of
sells its products on all five continents, with a high
innovative transportation solutions, ranging from
concentration in Europe and North America. More than
regional aircraft and business jets to rail transportation
94 % of revenues are from markets outside Canada.
systems and solutions. The company is a global corporation headquartered in Montréal, Canada, with
Bombardier Inc. consists of:
total revenues of about $14.7 billion. The major
> Bombardier Transportation providing rail transportation systems and solutions
shareholders are members of the Bombardier family. Details on the shareholders of Bombardier Inc. can be found in the corporation’s Annual Report. Bombardier
> Bombardier Aerospace producing regional and business aircraft
Picture (left side): Global Headquarters Bombardier Transportation, Berlin, Germany
Bombardier nameplate on AGC regional train, France
Bombardier Transportation Divisions and Group Functions
President
Chief Information Officer
Procurement / Chief Procurement Officer
Mainline & Metro
Chief Operating Officer
Services
Project Management & Chief Technical Officer
North America
Australia
Sales
Total Transit Systems
Propulsion & Controls
Strategy
Rail Control Solutions
Locomotives
Communications & Public Affairs
Bogies
Light Rail Vehicles
Bid Approval Process
Operations & Quality
London Underground Projects
Finance
Contracts & Legal Affairs
Human Resources
Health, Safety & Environment
Segmented Revenues by Regions (Bombardier Transportation) Europe 72%
North America 19%
Asia-Pacific 7% Other 2% Source: Bombardier Transportation, Annual Report 2005-06, www.bombardier.com > Investor Relations > Financial Reports
Market Position Bombardier Transportation’s divisions hold the No. 1 global market position in eight of the 10 markets in which the Group operates. Business Locations Bombardier Transportation currently employs some 28,600 staff at 42 major production and service locations. Several of these host more than one production/service facility under separate management. Three plants in China are joint ventures with only a 25 % Bombardier share and, due to that, limited influence. There are around 40 generally smaller sites of the Services and the Total Transit Systems divisions (most of them Our mission is to be the world’s leading manufacturer of planes and trains. > We are committed to providing superior value and service to our customers and sustained profitability to our shareholders by investing in our people and products. > We lead through innovation and outstanding product safety, efficiency and performance. > Our standards are high. We define excellence – and we deliver.
Strategy, Policies and Management System
Bombardier Inc. Mission Statement
11
T
he Bombardier Inc. Mission Statement, created in 2004, gives direction to Bombardier Transportation in our daily business operations. To fulfill this mission, we adhere to four Core Values which inspire our actions and decisions, and which provide a benchmark for everyone. > Integrity: We behave with integrity and in an ethical manner in everything we do and say, thereby earning and maintaining the trust and respect of customers, shareholders, suppliers, colleagues, partners and communities. > Commitment to Excellence: Our commitment is to demonstrate excellence in all spheres of our work and in our interactions with customers, shareholders, suppliers, colleagues, partners and communities. In addition, we commit to exercising judgement, professionalism, rigour, self-discipline, perseverance and team spirit. > Customer Orientation: We promote a customer-centered culture that emphasizes outstanding service and meets our commitments at every level of our organization. > Shareholder Focus: We are focused on creating sustainable shareholder value through developing profitable products and projects, and soundly managing the business for the benefit of customers, shareholders, suppliers, colleagues, partners and communities. Core Values www.bombardier.com > About us > Mission Statement and Values
Corporate Governance at Bombardier Inc.
12
Bombardier’s approach to corporate governance has
interests of all shareholders and to provide continuity
always ensured that the Corporation’s affairs are effec-
of leadership while the Corporation’s long-term
tively managed to enhance value for all shareholders.
strategy for value creation is implemented. The
This is carried out in a manner that guarantees full
Office of the President groups strategic and executive
compliance with relevant reporting and regulatory
management responsibilities around Chairman and
requirements and the highest ethical standards.
Chief Executive Officer, Laurent Beaudoin, and
Chief Executive Officer (CEO): The CEO is responsible for managing and monitoring Bombardier’s strategic and operational plans. The specific responsibilities of the CEO include implementing the Board’s resolutions
the leaders of the two main operating groups, Pierre Beaudoin, President and Chief Operating Officer of Bombardier Aerospace, and André Navarri, President of Bombardier Transportation.
and policies and providing long-term strategic
Board of Directors/Committees: The Corporation’s
orientation.
Board of Directors has a majority of independent
Office of the President: In December 2004, the Office of the President was created to help ensure that Bombardier’s focus is closely aligned with the best
Code of Ethics and Business Conduct The Bombardier Code of Ethics and Business Conduct sets the standard for our ethical business practices and behaviour. High standards of conduct are demanded and expected from all employees in their daily activities and dealings with others. As an international group with manufacturing and customer operations in over 60 countries, we are working to have the code adopted in every country in which we have a presence. In early 2004, Bombardier Inc. appointed a Corporate Compliance Officer to ensure full adherence to applicable laws and regulations and strict compliance with Bombardier’s Code of Ethics and Business Conduct. Since then, the Code has been made available to Code of Ethics and Business Conduct www.bombardier.com > About us > Code of Ethics
directors, and all Board committees are comprised entirely of independent directors. Further details can be found in the Annual Report of Bombardier Inc.
employees and posted in 12 languages on Bombardier’s website. In addition, a program of in-depth awareness training was launched for all managers. The Code outlines a series of guidelines regarding anti-corruption, political activities and relations based on a partnership with external stakeholders. The Sustainable Business Case Modern and sustainable mobility is not only a key factor in the success of an economy; it also forms the basis for quality of life. Increasing private and commercial traffic on our roads is having a major negative effect – e. g. noise and CO2 emissions. Congested roads and cities also lead to higher levels of stress and lost time. There’s no easy solution to the problem of congestion and pollution. Simply building more roads means using an increasingly large surface area and eroding the coun-
Strategy, Policies and Management System
13 Double-deck coach at Berlin Main Station, Germany
tryside, which in turn poses a great danger to animal and plant life. It also encourages increased volumes of vehicular traffic. For a rail vehicle manufacturer such as Bombardier Transportation, the concept of a “Sustainable Business Case” is a significant step forward to more long term environmentally responsible mobility. Ecological compatibility is a major competitive advantage of rail transport vis-à-vis other modes of motorized travel. This advantage must be further embedded through continued environmental improvement within the production chain and also by raising public awareness of the benefits of choosing the train. That’s why Bombardier Transportation has put sustainable mobility at the heart of its design, engineering and operating philosophy.
We are also involved in several projects, collaborating with other similarly dedicated organizations in our sector, under the umbrella of the International Union of Public Transport (UITP). The UITP is devoted to improving the benefits of mass transport and its members include operators and manufacturers. In 2002, it established a sustainability working group which developed a strategic document on contributions by mass transit to sustainable mobility. It encouraged its members to subscribe to a sustainability charter launched at the 2003 UITP congress in Madrid, Spain. The standards for acceptance were high (including visible top management commitment). Bombardier Transportation was the first vehicle manufacturer to sign the UITP Sustainability Charter. UITP Sustainability Charter www.uitp.com/Project/susdev_Charter.cfm
UITP Sustainability Charter “This Charter acknowledges the work UITP mem-
Charter members commit to:
bers have already done and its signatories commit to
> Fostering leadership on sustainable development through dialogue and exchange of best practices with all stakeholders.
ensure that the three principles of sustainable development – social, economic and environmental – are embedded in their activities and the development of the public transport sector remains sustainable in terms of its social, economic and environmental impact.”
> Exerting influence on international and government policy to develop a responsible balance between social, environmental and business considerations. > Facilitating training and mentoring through activities and forums focused on sustainable development practices. > Adhering to a process of regular reporting on sustainable development practices.
14 Meridian diesel-electric multiple unit, UK
We have made great progress since signing the charter in June 2003, namely reducing the number of accidents, developing more efficient resource consumption as well as publishing an HSE report in 2005. This Sustainability Report for 2005/06 is the latest demonstration of our progress.
The all-encompassing policy replaced the previously separate environmental and workplace safety policies. With the HSE policy we are committed to saving our natural resources, avoiding environmental damage and providing our staff with appropriate health provisions. We also urge our suppliers to adhere to similar principles.
HSE Policy With coherent and accountable company leadership growing increasingly important, Bombardier Inc. introduced a new policy for occupational health and safety as well as environmental protection in 2003, which applies to all parts of the corporation.
HSE Organization In 2001, Bombardier Transportation combined the areas of Health, Safety and Environment, a decision that made the General Managers at all the plants responsible for adherence to the internal regulations such as developing HSE improvements and ensuring advanced training is available for staff.
How Bombardier Transportation Meets Its HSE-Related Legal Requirements Bombardier Transportation oper-
Group HSE department reporting
responsibilities to plant general
ates locally through legal entities,
to him directly. Authorized by the
managers who in turn do the same
but is structured along business
parent company, Bombardier Inc.,
vis-à-vis their direct reports. By
units. Maintaining a legally com
both of them are entitled to over-
delegating the respective respon-
pliant organization with regard to
see every legal entity as well as the
sibilities, Bombardier ensures
HSE is a significant task. We have
divisions and sites of the company
that all legally required organiza-
accomplished it by establishing
regarding HSE issues.
tional regulations, particularly the
a link between the business and legal entity organization via the Chief Operating Officer with the
Legal entities nominate a member of their management team responsible for HSE and assign HSE
appointment of qualified staff and representatives, are met within the independent legal entities.
Superior Products and Services Delivery Process
Customer Needs
1
Product Strategy
2
3
Bid
Start-up
4
5
Design
Realization
6
Field Support
Value Creation for Customers
Strategic Governance and Leadership Systems Products and Services Delivery Systems Measuring and Controlling Systems Support Systems Continuous Improvement Systems
HSE coordinators and other experts for workplace safety and environment protection (in particular, representatives required by legal obligations) support those efforts, reporting directly to the General Managers. HSE experts based at the different sites and divisions report regularly to the head of HSE at the Group’s headquarters in Berlin (who in turn has a direct reporting line to the company’s Chief Operating Officer). If necessary, the experts have the right to report directly to the respective management. HSE Council Coordinating all HSE demands and policies of Bombardier Inc’s two groups, Aerospace and Transportation, is facilitated in the corporation’s HSE Council, under the leadership of the Senior Vice President Human Resources and HSE of Bombardier Inc.
Management System Living up to our commitment to deliver superior products and services – from the initial product strategy through to the end of the product life cycle – is key for Bombardier Transportation. To that end, we utilize clearly defined business processes and a common, integrated Business Management System. An important focus of our strategy is the deployment of the Bombardier Transportation Integrated Processes (BTIP). BTIP is a business system that integrates all functions and their respective initiatives in order to establish common processes and systems at every step of the
Strategy, Policies and Management System
Bombardier Transportation Integrated Business Process and Systems
15
product life cycle, thus ensuring a smooth workflow and close collaboration among the various members of our project teams. Certified Conformity The success of this approach in providing effective control over all aspects of our activities is reflected by our receipt of a consolidated, multi-site certification in compliance with the international standards for quality (ISO 9001:2000), the environment (ISO 14001:2004), and the British guidance standard OHSAS 18001:1999 (Occupational Health and Safety Management System). 39 of the 41 company facilities eligible for certification* have been certified according to the environment standard ISO 14001. The number differs from the number of locations as there can be several entities under different management at a location. This means that over 90 % of our staff work within the perimeters of externally certified environment-management systems. The seven German sites (Aachen, Bautzen, Görlitz, Hennigsdorf, Kassel, Mannheim and Siegen), which in total represent approximately 40 % of the company’s overall staff in Europe, are applying the European Eco-Management and Audit Scheme (EMAS) in addition. They publish their Environmental Statements, updated annually. Several other European sites are currently preparing to apply EMAS. * Under Bombardier Inc. regulations production/service facilities which have 150+ employees and are under our management control HSE policy www.bombardier.com > About us > Social Responsibility Environmental Statements www.transport.bombardier.com > About us > Sustainable Mobility
Six Sigma – A Success Factor
16
Striving for excellence involves
customers. The methods and tools
reduced through the systematic
continuously improving the way
within Six Sigma are applied at
elimination of waste and varia-
we do business, how we apply our
all sites and enable us to give the
tion from processes and products
processes, and how we design,
highest priority to our customers’
using the Six Sigma methodol-
produce and maintain our prod-
demands as well as to maintaining
ogy. Central to this are statistical
ucts. Our Six Sigma program
low costs. We are convinced that
methods that reveal faults in repeti-
provides a structured approach to
high-quality production is also the
tive work processes that would
continuous improvement across
most cost-effective. For example,
otherwise go unnoticed. These
Bombardier. We launched our
a production system performing
techniques where used to great
comprehensive Six Sigma initiative
at a level between 2 and 3 sigma
effect in the HSE sector is the
as part of an ongoing drive to sat-
will have a rate of defects cost-
TTS Division’s development of a
isfy and even surpass the chang-
ing some 20 to 30 % of turnover.
computer-aided process for acci-
ing needs and expectations of our
These costs can be dramatically
dent investigation.
Health and Safety certificates according to OHSAS 18001, are already available at 39 of the 41 sites mentioned, corresponding to 95 % of staff. Independent Checks of Compliance with Legal and Other Requirements Since 2001, all production and service sites with more than 150 employees have been subjected to legal compliance surveys. Commissioned by the HSE group function, external, independent experts examine whether all legal HSE-related requirements have been adhered to, and monitor the implementation of the parent company’s HSE policy obligations. In addition, they evaluate the implementation of HSE training programs and the progress made from year to year. In the first cycle, legal compliance surveys were conducted at 52 sites, including manufacturing facilities as well as some TTS Operations & Maintenance sites. The legal compliance surveys have emerged as an important step in minimizing risk, and have also fostered the ongoing improvement process.
The second audit cycle started in 2006. For the first time, four sites were put to the test in conjunction with an EMAS audit. Previous surveys had revealed that EMAS sites did not register any violations in the environment sector, which was confirmed by the compliance surveys. We will continue our reviews on a three-yearly basis. At the EMAS-validated sites, every second review will go hand-in-hand with EMAS certification. The results of the compliance surveys and the follow-up reviews are made available to the Bombardier Inc. Audit Committee and Bombardier’s Corporate HR/Compensation Committee on a yearly basis. Supply Chain Management Suppliers contribute a substantial portion to Bombardier Transportation products and services, which means they not only have a major impact on the value chain but also on environmental burdens and social aspects. The Bombardier Procurement System is designed to ensure that suppliers fulfill their role as part of a complete team. Starting with the selection of suppliers, we place ambi-
Strategy, Policies and Management System
17
tious demands on performance which include a catalogue of technical and business-oriented criteria relating to quality guarantees, internal learning processes, pricing systems and the ability to deliver the goods. Using these criteria, Bombardier Transportation strives to learn more about the status and scope of its suppliers’ environment and safety management systems. Our highest assessment goes to suppliers who work with an externally audited environmental management system and to cases where a series of ecological criteria have been considered at the product development stage. In terms of workplace safety, we prefer suppliers who use a management system according to OHSAS 18001 or a comparable standard. We also expect our suppliers to adhere to the principles outlined in Bombardier’s Code of Ethics and Business Conduct, including equality and non-discrimination. However, HSE criteria currently do not play a decisive role in the assessment process unless, for example, two competing suppliers have an identical rating. Human Resources System As with every company, our success is driven by the integrity, motivation and enthusiasm of our people. Bombardier Transportation devotes considerable effort to its human resources.
The following key processes define our Human Resources System: > To identify, qualify, select and hire the best and brightest to have the right employees in the right role. > To integrate and support employees in the company and to retain them with efficient processes and procedures. > To provide an optimal performance environment and to ensure that competencies are aligned with organizational needs, business strategy, culture and core values. > To transfer, realign, retire or release staff in a manner that is aligned with the organizational needs, business strategy, culture and core values. > Human Resources identifies and harmonizes the interaction of these elements with other functions. All of the elements are defined in directives, procedures and instructions documented as part of our overall management framework. Human Resources also works with the Communications & Public Affairs function on internal communications programs. The effectiveness of the Human Resources System and the impact on the organization overall is monitored through an employee survey conducted every two years in cooperation with the Communications & Public Affairs department.
Stakeholder Dialogue
At Bombardier Transportation we are convinced that a sustainable development and future-oriented mobility strategy can only be achieved if all participants involved work together and if an open dialogue and learning process is in place. We rely upon partnership and cooperation with all our stakeholders. Among these are our employees, customers, suppliers, neighbors and communities, where we have operations.
18
Stakeholder Dialogue
19
A
s a member of numerous associations and organizations and a partner in related projects, we strive to share our experiences and to consolidate and expand our knowledge. At the same time, an ongoing dialogue with customers, politicians, the scientific community and non-governmental organizations is an important tool within our early warning system for identifying risks and opportunities. Shared Experiences Forum for Corporate Sustainability Management (CSM): Following a long tradition of fruitful collaboration with one of the worlds’ leading business schools, the Institute for Management Development (IMD) in Lausanne, Switzerland, Bombardier Transportation is currently a member of IMD’s Forum for CSM, which is headed by Prof. Dr. Ulrich Steger. The forum focuses on three key issues of sustainability management: managing stakeholder dialogue, driving sustainability through leadership and linking it to business performance. Corporations participate in the Forum to build a sustainable business advantage through social and environmental strategic action. As a participant, we benefit from IMD’s faculty and staff expertise when conducting hands-on pilot projects, and we learn from other companies that participate in CSM through benchmarking. We also share ideas with organizations outside our traditional business area and are able to participate in a range of learning forums. Some of the CSM’s current research topics include multi-stakeholder dialogues and public private partner-
ships (PPP), sustainability challenges and dilemmas for companies, managing product responsibility as well as human rights issues. Bombardier’s participation in the CSM’s Health & Safety and Environment groups has proven to be an ideal forum for exchange of best practice and benchmarking with other companies. Conference Board: The North America-based Conference Board creates and disseminates knowledge about management and the marketplace to help businesses strengthen their performance and better serve society. Working as a global, independent membership organization in the public interest, it conducts research, convenes conferences, develops forecasts, assesses trends, publishes information and analysis, and brings executives together to learn from one another. The Conference Board operates via a number of councils. We participate in the European Council on Environment and Product Stewardship, created in 1991, in response to public, government and corporate concern about the environment and sustainability as well as product stewardship issues. Bombardier Transportation is especially involved with issues such as eco-design and product declarations, environmental reporting, and sustainability. We also attend the European Council on Health and Safety which gives European safety managers the opportunity to exchange ideas on increasing the effectiveness of their health and safety programs, and on promoting the active participation and commitment of employees. Institute for Management Development (IMD) www.imd.ch/csm Conference Board www.conference-board.org
20 New Standards for the future – Bombardier ZEFIRO high-speed train (artistic rendering)
Standardization European legislation in the environmental field is increasingly based on standards. Bombardier Transportation’s HSE staff contribute to several standardization initiatives such as the current development of the ISO 14005 standard, the revision of ISO Guide 64 or work in CENELEC’s TC 111X on environmental standardization.
economic performance. In Germany, INEM is represented by B.A.U.M., the German Environmental Management Organization. Its members subscribe to the B.A.U.M. ethical code of practice. In 2000, the head of our HSE department received the B.A.U.M. award which is given to managers contributing to future-oriented environmental protection.
Industry Associations / Environmental Initiatives Union of the European Railway Industries (UNIFE): The industry association represents the majority of rail vehicle, systems and components manufacturers on a European level. Its working group, Environment & Transport, which is led by Bombardier Transportation, advises on European legislation and acts as a forum for exchanging knowledge and cooperation with customers’ environmental experts via close links to the operators’ organization International Union of Railways (UIC). Bombardier Transportation President André Navarri has been the Chairman of UNIFE since 2005.
Allianz pro Schiene: The association Allianz pro Schiene (Alliance for Rail) promotes environmental protection by educating the public on the environmentally sound nature of railway transport. With its efforts focusing on Germany, the group aims to increase the share of railway networks in the traffic system.
Union of Public Transport (UITP): The UITP is an association devoted to mass transport, with membership including operators and manufacturers. In 2003, UITP members approved a Sustainability Charter (see page 13). Bombardier Transportation was the first rail vehicle manufacturer to subscribe to the charter in 2003. International Network for Environmental Management (INEM): INEM is a non-profit federation for environmental management and sustainable development that aims to help companies improve their environmental and
Allianz pro Schiene also encourages the exchange of information on railway traffic issues and technological development for rail systems on a national and international level. Peter Witt, Chairman of the Supervisory Board of Bombardier Transportation, Germany, entities, is a member of the board of Allianz pro Schiene. Similar initiatives with Bombardier Transportation participation exist in several other countries.
CENELEC www.cenelec.org UNIFE www.unife.org UITP www.uitp.com INEM www.inem.org B.A.U.M. www.baumev.de/baumev/portrait/Englisch/d_Code_of_Practise.pdf Allianz pro Schiene www.allianz-pro-schiene.de
A
s a manufacturer of rail vehicles, Bombardier is in the fortunate position of enjoying the goodwill of many stakeholders. Of course that does not release them from the responsibility of leading by example, both externally and internally, in the sphere of environmental protection. Beyond the mere manufacturing process, what can the company do in the realm of new technologies and innovative concepts to overcome the public preference for cars and trucks over rail? Just to be clear: waiting for miracles or taking business risks are not on the agenda. What is on Bombardier’s agenda, however, is a strong commitment that ranges from the fight against noise pollution to creating innovative transportation concepts that include proactive preparation for future developments. While common sense would dictate that rail traffic is the way to go, the opposite is currently true. Railways have a distinct disadvantage in an increasingly individualized society: The transportation of people and freight by rail is marked by circuitous routes and interruptions, while cars and trucks can travel directly from one destination to the next. That’s another reason why it is necessary to develop new technologies and traffic concepts. Sustainability alone is no guarantee for success. Particular issues of sustainability can only be implemented in the long-term, and very often they are controversial. Everyone knows that climate change is on its way, but no one can
Prof. Dr. Ulrich Steger, International Institute for Management Development (IMD), Lausanne, Switzerland
gauge its impact in terms of when it will strike, who will be affected, and what the overall effects will be. In this very context, another factor, however, is a fixture: The pressure on achieving short-term financial success is constantly mounting. In many cases these pressing matters are addressed while the important issues are neglected. A successful management is characterized by the ability to strike a balance between short- and long-term planning. A company’s core values are an important prerequisite to be able to pursue a profit-oriented but also sustainable economic policy. As a family-owned business, Bombardier displays a number of good starting points, not only when it comes to its business responsibility but also its drive to demonstrate sustainable development. Equally important is the ability not only to recognize future trends at an early stage but also to make strategic use of them. That, in turn, requires an open mind for new developments and diversification. Finally, but perhaps most crucially for sound management, is the ability to find committed employees who know they can rely on proven structures and processes in order to do their jobs effectively.
Prof. Dr. Ulrich Steger
Stakeholder Dialogue
Sustainability Alone is No Guarantee for Success
21
Product Responsibility and Customer Orientation
The ecological benefits of rail transport are considerable. Since energy is transferred most efficiently between a steel wheel and the steel track, energy consumption of rail vehicles, and therefore the related emissions, are much lower than other forms of motorized land transportation.
22
Product Responsibility and Customer Orientation
23
T
he average eco-efficiency of modern intercity trains is comparatively much higher than for other types of motorized freight or passenger transport, in terms of energy consumption and pollution output. In addition, land use by private cars and buses is significantly higher than compared to rail, e. g. trams and metros.
A few numbers will help to illustrate the point. While a metro can transport 50,000 passengers per hour (pph) using a 3 – 5 m wide strip of land, only 9,000 pph can be transported by buses, but even much less (2,000/h) by private cars (see UITP, “Ticket to the future” and diagram on page 25). Assuming the same transport need, it means that 25 lanes, each 3 m wide, would be required when cars are used instead of a metro system. Interestingly, use of bicycles would increase capacity to 14,000 passengers/h. This demonstrates the dilemma countries like China and India are facing by increased car traffic. Even though rail transportation comes out on top in all the relevant measures of environmental protection when directly compared to other modes of transportation, there is still more work ahead. We must continue to improve our ecological standards. Working actively to protect the environment is not only a commitment towards society; it should also create competitive advantage for our customers, the rail operators.
UITP, “Ticket to the future” www.uitp.com/project/pics/susdev/brochureUK.pdf
24 Bombardier Regina electric multiple unit, Sweden
Environmental Improvement of our Products Internally, we have now been measuring and reporting improvements of environmentally relevant processes at our facilities for over five years. Although this has allowed us to follow up with specific action plans, we are convinced that environmental improvements on the product side are far more relevant, and that there is still room to grow.
In order to provide a better framework for this goal, we introduced two performance indicators in 2006. They measure issuing of Environmental Product Declarations – at least one per new product platform – and whether energy efficiency or other environmental items are included in product roadmaps which describe the technical evolution of vehicle platforms, over time.
Environmental Aspects and Associated Impacts All industrial activities – whether
“Environmental impact” refers to
management system is to minimize
manufacturing processes, product
the change (positive or negative)
the negative environmental impact
use or service provision – have an
resulting from a particular activity,
of our activities by means of a
impact on the natural environment.
such as the deterioration of the
process of continuous improve-
In qualifying and quantifying this
ozone layer or the greenhouse
ment. This goal applies equally to
impact, two concepts are particu-
effect.
the Group’s finished products –
larly important. The term “environmental aspect” is used to describe processes or items that influence or disrupt the environment, such as energy consumption, waste generation and emissions of gaseous and liquid substances.
The two terms are connected in the sense that environmental aspects can generally be related to specific environmental impacts, although this depends on the evaluation model used. Thus, the primary goal of our environmental
both during their use phase and following decommissioning – and to the manufacturing processes employed, regardless of whether this happens at Bombardier Transportation itself or on the suppliers’ premises.
50,000
* Number of people crossing a 3 – 5 m wide space in an urban environment during a 1 hour period
50,000
37,500
22,000
25,000
9,000
12,500
25
2,000 0
Car
Bus
Tram
Metro
Source: UITP, “Ticket to the future”, www.uitp/com/project/pics/susdev/brochureUK.pdf
Energy Consumption Reducing energy consumption has become increasingly relevant to our work with our customers, not only because of its environmental impact but also for its effect on cost and availability. Energy costs, calculated over an extended period, can often equal the usual maintenance costs or the capital investment for new vehicles. Minimizing energy consumption has traditionally been done by aiming for lower weight, decreasing aerodynamic drag, recovering brake energy and reducing losses for all propulsion components. In addition, power meters can be installed in the vehicle to control the energy consumption. Predicting Performance One problem regarding energy consumption in rail vehicles is that it is not possible to produce prototypes for extensive testing. This means that typically energy consumption is calculated and not actually measured until we are in the final production stage. To better estimate energy consumption, we have invested in the development and improvement of advanced software tools. These allow us to calculate the energy consumption of our vehicles with a high degree of accuracy. However, only real-life testing can show whether our measures are applicable and successful. Testing on the Ground A recent project in Scandinavia, which was conducted with involvement of our Design for Environment Competence Center, measured the actual energy consumption of several modern trains, including our Regina trains in Sweden and the Öresundstoget that links Denmark and
Product Responsibility and Customer Orientation
Transport Efficiency in Urban Environment *
Sweden (KTH Stockholm, Andersson & Lukaszewicz, 2006), against benchmark data for a study of locomotivehauled trains conducted in 1994. The energy consumption for propulsion and for comfort functions such as Heating, Ventilation and Air Conditioning (HVAC) and also for idling were measured, as was the energy lost in railway operation. In general, these studies showed that for comparable operations, energy consumption on the newer trains had been reduced by 25 to 30 % per passenger kilometer. Several new and innovative design factors influenced these results:
> Improved aerodynamics (energy consumption reduced by more than 20 %)
> Regenerative braking (energy consumption reduced by nearly 20 %)
> Improved efficiency in the propulsion system (energy consumption reduced by 5 to 10 %)
> Increased capacity/length due to wider car body (energy consumption reduced by about 25 %) Without all these measures, energy consumption, due to higher speeds and more comfort functions, would have increased by 60 %. The key challenge in product development is to balance passengers’ demands for high speed and climate-controlled comfort with the operators’ need for energy-efficient solutions, while remaining competitive and improving environmental performance.
26 Commuter train for the Ile-de-France region
Design for Environment (DfE) Given our vehicles’ long life – as much as 40 years – Bombardier Transportation places great emphasis on creating environmentally compatible products. Our focus is certainly on comfort and design but simultaneously on meeting or exceeding specific environmental demands during product development. Current laws require that companies achieve higher energy efficiency, lower noise emission levels and use risk-free materials. Counting on DfE Bombardier Transportation goes above and beyond government regulations. As a company devoted to continuous improvement of environmental performance, we have been committed to improving our products through Design for Environment (DfE) for the past 15 years. The primary goal of DfE is to develop vehicles that contribute to a sustainable mobility, such as those that reduce energy consumption and noise emissions. What is the key to achieving this goal? The environmental impact that the product will have throughout its whole life cycle is factored in at the development phase. DfE was first introduced in our engineering branches in Scandinavia and Germany and has now spread throughout the organization. Since then, we have done much to reduce energy consumption during the product’s use. We aim to use DfE to help us produce environmentally compatible vehicles and to anticipate any future, more stringent legislation in this regard.
Rail Vehicle Recycling Recycling is one of Bombardier Transportation’s highest priorities. The company strives to make products even more reusable, and it achieves this goal by using recy clable materials as much as possible, avoiding the blending of materials and marking polymers and batteries. DfE Guidelines In order to help our engineers accomplish the task of designing eco-friendly products during the design process, several tools exist. Some are publicly available, like the leaflet called Design for Environment (DfE) Guidelines. This document contains some “quick and easy” principles on how to obtain more sustainable products and services. In essence, the principles address 11 design challenges such as energy efficiency, lifetime expectancy and the reduction of material diversity. Each designer is called upon to set up his or her own “DfE action plan” based on the guidelines. Through our Electronic Book of Knowledge, more detailed documents are available for all design engineers and staff in supply management.
Design for Environment (DfE) Guidelines www.transport.bombardier. com > About us > Sustainable Mobility
Function/Need
Design
Pro
Use
life of
Components and Materials
n ctio du
- Metals - Polymers - Natural/Organic materials - Composites - Glass and Ceramics - Insulation - Adhesives - Oils and other liquids - Corrosion preventing agents - Surface treatment - Cleaning agents - Cooling media and Fire extinguishers - Electrical and Electronical equipment
End
Directive on Prohibited and Restricted Substances In 2002, we implemented the first Bombardier Transportation Directive on Prohibited and Restricted Substances. The directive implements the Prohibited and Restricted substances list which defines substances that are either forbidden for use or that should not be used according to voluntary restrictions in all new designs/redesigns.
Bombardier Transportation Environmental Database Equipped with a web-based interface, CEMat is a central database for gathering, storing and tracking the environmental performance and passive fire safety requirements of Bombardier Transportation products. The system is an integral part of the Bombardier Transportation Data Acquisition System (B-DAS), which is the company standard for applications with external accessibility.
The first revision of the Bombardier Transportation Prohibited and Restricted substances list was made in the fall of 2004 and came into effect on June 1, 2005, for all new designs and design changes. This revision takes into account changes in legislation and risk assessments as well as customer requirements over the past two years.
The Bombardier Transportation Environmental Database involves suppliers directly and thus reduces the time needed for tasks such as creating a material inventory. The system was launched in 2006 and not only enables us to reuse existing data but also to share data between
Project for Sustainable Mobility Initiated in 2004, the project “Competitive Rail Argu-
This knowledge is helpful for communicating the
ments for Sustainable Mobility” is an important study
superior environmental performance of Bombardier
involving the use of environmentally friendly products.
Transportation products to new customers during the
The aim of the project is to promote the railway sector
tender process. Other objectives are to communicate
by applying environmental issues and arguments.
the environmental improvements that have been made
The study demonstrates the competitive environ-
over the last decades of rail travel and to monitor the
mental advantage of rail products compared to other
commitments made with regard to HSE Policy and the
modes of transport, and shows how Bombardier
UITP Charter.
Transportation contributes to Sustainable Mobility.
Product Responsibility and Customer Orientation
Items Covered by Bombardier Transportation DfE Guidelines
27
28
Bombardier TALENT 2 electric multiple unit
the business divisions. In addition, it transparently and efficiently stores fire certificates linked to the components in a product’s structure. Design for Environment Training Since the DfE Training Module was launched, several hundred engineers and supply managers have been trained. We expect the training to become an increasingly important pillar of our environmental strategy and are working to broaden its application at all our sites. Communicating Excellence: Environmental Product Declarations Most people are aware that traveling by rail has environmental benefits, and it is important for Bombardier and the entire rail industry to uphold this perception. We use Environmental Product Declarations (EDP) to provide cus-
tomers, operators and other stakeholders with relevant, reliable and objective environmental information. These declarations deliver concise information about the manufacturer’s environmental management system and also describe the environmental aspects of the product’s lifecycle (production, use – with special focus on energy consumption – and end-of-life). An environmental profile for each respective product is then put together based on that information. In order to set up such a product declaration, our staff performs a lifecycle assessment (LCA) that includes manufacturing, operating (including maintenance) and endof-life treatment. It is based primarily on a thorough material inventory and a calculation of energy consumption. The structure and content of the product declarations are based on international standards. We have expanded the
Product Responsibility and Customer Orientation
29
EMAS logo poster on Bombardier TRAXX P160 DE, Germany
application of standards from ISO 14021 (self-declared environmental claims), to now include the new standard ISO 14025:2006 in certain projects. We apply this new international norm not only because it is the most advanced and demanding one in this field but also because it allows us to have our products’ environmental performance verified externally according to an acknowledged scheme. We believe that such external verification is required as soon as the product is of relevance for the general public (like rail vehicles). For systems/components that are delivered to other businesses (B2B), ISO 14021 may be sufficient. However, even in these cases, ISO 14025 may be preferred as it has the advantage to allow for compiling an EPD from information modules which reflect a modular product structure. This enables us to use input data from suppliers provided in a standard, and even validated, format. Generally, EPDs are developed with support from our Design for Environment Center of Competence. Whenever feasible, they are verified according to the European EMAS regulation. Details on the corresponding Program and product category rules according to ISO 14025 can be found on the Internet. With regard to EPD’s we believe we are ahead of the curve. We introduced the concept of EPDs to the rail sector in 1999. The first EPDs fulfilling the requirements of the ISO 14025:2006 standard
were distributed at the Innotrans trade fair in Berlin in September 2006. Environmental Fact Sheets An Environmental Fact Sheet (EFS) allows us to evaluate the environmental performance of a customer-specific version of a vehicle and/or component. It is especially suited for reporting environmental performance information in the early design stages. Such an EFS typically deals with customized adaptations, material changes and improvements. The first EFS was introduced by Bombardier Transportation in September 2004. It was produced for the Locomotive Class Re 484 (Swiss Cargo) and is based on the EPD for the Locomotive Class 185.1. While relevant ISO standards provided guidance of the contents, the EFS was also validated through EMAS.
Program and product category rules www.transport.bombardier.com > About us > Sustainable Mobility
30 Electric multiple unit for Perth, Australia
Design for Environment Project Examples Bombardier Transportation has worked on numerous projects to make our products even more environmentally compatible and to improve our transportation systems’ sustainability. We do this either hand-in-hand with our customers and suppliers or, in the case of a consortium, with our partners. Electrical Multiple Units for China Bombardier is set to deliver 20 sets of eight-car Electrical Multiple Units (EMU) to China. The vehicles are being produced at our facility Bombardier Sifang Power in Qingdao, which is a joint venture between Bombardier, the Chinese company Sifang and Power Corporation of Canada. The project started at the end of 2004. The first EMU were delivered in 2006. The Chinese
Ministry of Rail has ordered a train built according to European standards. So the environmental issues should be considered in accordance with European standards. All suppliers are requested to comply with the Bombardier Transportation List of Prohibited & Restricted Substances. They are also required to mark all polymers and batteries. London Underground In the Victoria Line Upgrade (VLU) project (part of the London Underground system), Bombardier Transportation is asking all suppliers to comply with its list of Prohibited & Restricted Substances and the marking of polymers. They can declare their conformity by filling out Bombardier Transportation’s “Supplier Declaration Form”.
Actions Taken to Minimize the Use of Chromates Although due to the relatively low quantities used there
were manufactured by Joint Venture of Bombardier
is no direct hazard from Chrome VI applied for plating
Transportation Australia in Brisbane, Australia and EDI
of screws, nuts, and washers, there is a phase-out
Rail in Granville, New South Wales, Australia. The pro-
program similar to the automotive industry (which is
pulsion equipment was designed and manufactured
subject to legal obligations in this respect). As an exam
in Västerås, Sweden. It is estimated that Bombardier
ple, in our product PURD EMU Western Australia that
Transportation had managed to reduce the total
was delivered to the customer in September 2004, the
amount of chromated surfaces by more than 95 %.
customer specified that chromates were not allowed
Chromates can still be found mainly in external stan-
in the vehicles. The stainless steel vehicles, in total 31,
dard components where no alternatives are available.
PROSPER Environmental Procurement Guideline Environmental and technical expert information
NETWORK Members Board Website
Environmental performance of new rolling stock
REPID Methodology Indicators IT-Tool
Another part of the London Underground contract is the Sub Surface Line (SSL). Here, the same base requirements have been defined as in the VLU project. In addition, a full material inventory will be carried out using a Bombardier Transportation material inventory tool. The customer has also requested an environmental report (i.e., a kind of EPD). New Opera In Europe, the railway system plays an increasingly important role. Because of this, the European Transport Policy’s goal is to encourage long-term sustainable mobility and to promote a competitive environment. In order to achieve this, a modal shift towards rail is necessary, in particular reversing the negative trend of the rail freight’s market share. New Opera is a research project funded completely by the European Commission on a new European rail infrastructure dedicated to freight. A three and a half-year program, New Opera began in January 2005 and provides an excellent opportunity for studying long-term and cross-border cargo mobility as well as for developing scenarios for the next five to 15 years. Bombardier Transportation’s role in the project is to share its DfE expertise with the goal of identifying and evaluating environmental criteria for assessing the sustainable New Opera freight system. PROSPER and REPID The PROSPER and REPID “twin” projects are the result of a unique cooperation between railway operators and manufacturers to improve environmental performance of new rolling stock. In order to do this, project partners developed common guidelines, specifications, indica-
tors, tools and data formats. Bombardier Transportation participated in both PROSPER and REPID. The UIC-(International Union of Railways) funded project PROSPER ( Procedures for Rolling Stock Procurement with Environmental Requirements) intended to improve the environmental performance of rail transport by providing process support for all relevant steps when procuring rolling stock. The results of the project have recently been compiled as an environmental guideline for railways, including a set of harmonized environmental specifications, in the UIC leaflet 345 “Environmental Specifications for new Rolling Stock”. In order to implement these environmental specifications efficiently, railways and manufacturers need a common environmental methodology. Based on the methodology defined in a predecessor project under Bombardier’s lead, which included environmental performance indicators, the REPID (Rail sector framework and tools for standardizing and improving usability of Environment Performance Indicators and Data formats) project developed a software tool for handling DfE. It also came up with a web-based solution for environmental communication between the different railway stakeholders. This has formed the basis for the Bombardier CEMat tool.
New Opera www.newopera.com Procedures for Rolling Stock Procurement with Environmental Requirements www.railway-procurement.org
Product Responsibility and Customer Orientation
PROSPER and REPID: Future of Eco-Procurement in the Rail Sector
31
In Focus: Climate Change
Climate change is one of the most critical challenges of our times. With its potential impact on our health, economy and ecology, global warming is a major risk. Some of the consequences are already visible; for example, an increase in extreme weather patterns, and the rise in the average temperature. Scientists have warned that greenhouse gases are one of the main culprits, notably CO2, whose emissions result from burning fossil fuels such as coal, oil and gas.
32
BiLevel commuter train operated by GO Transit in Toronto, Canada
T
he need to protect the climate provides Bombardier Transportation with important incentives for product planning. However, low emissions are equally important to the whole of Bombardier Inc. on an operational level. On Feb. 16, 2005, just after our parent company’s fiscal year ended, the Kyoto Protocol on climate change came into effect, providing added impetus for the corporation to recommit to reducing its environmental footprint. With total yearly emissions in the 400 – 500 kiloton range, Bombardier’s global manufacturing network produces a relatively minor amount of greenhouse gas emissions (mainly CO2). However, in keeping with its sustainability agenda, the corporation is devoted to reducing emissions even further. Over a five-year period, Bombardier Inc. has set an annual
corporate-wide energy-reduction objective of 3 % to reduce its greenhouse gas emissions accordingly. Coinciding with the United Nations Climate Change Conference 2005 in Montreal, a number of prominent Canadian business leaders called for a raft of measures regarding climate change and global energy policies. One of the co-signatories of the appeal was Laurent Beaudoin, Bombardier’s Chairman of the Board and Chief Executive Officer. In 2006, Bombardier Inc. joined the Carbon Disclosure Project and disclosed all data relating to low-level emissions and its strategies on climate protection. The project – backed by several high-profile institutional investors – aims to recognize at an early stage all climate-relevant opportunities and risks for companies.
In Focus: Climate Change
33
Mobility and Climate Change Traffic and travel are one of the main reasons why CO2 emissions continue to increase. An estimated 18 % of the global anthropogenic CO2 emissions are a direct result of transporting people and goods. In certain countries, e.g. Germany, that figure is closer to 30 %. Road traffic is responsible for two-thirds of that volume, proving yet again that it is the least energy efficient mode of transportation. In contrast, rail travel is extremely climate-friendly. The CO2 emissions resulting from long-distance train journeys are nearly two-thirds lower than travel by car. If the freight traffic of each has the same volume and performance, the railway produces a mere one-fifth of the CO2 emissions generated by a truck. Bombardier Transportation’s Products and CO2 Reduction In order to maximize the inherent environmental advantages rail enjoys in terms of relieving traffic congestion, reducing energy consumption and producing fewer emissions, Bombardier Transportation is working successfully on innovative public transport solutions. For example, in order to allow for more efficient use of braking energy on our light-rail vehicles, we developed the Bombardier* Mitrac* Energy Saver Solution. This innovative technology can help reduce the energy consumption of a light-rail system by up to 30 %. Furthermore, Bombardier Transportation is a leading contributor to the “Rail Energy Project” in the fields of
energy components and energy operation as part of the 6th EU Research Framework Program. The project aims to develop energy saving hardware and control systems, as well as to define standardized driving cycles. It’s estimated that the results will lead to an overall six-percent reduction in energy consumption. That said, our research efforts to develop climate-friendly transportation systems are not exclusively rooted in ethical responsibilities, though those are certainly a priority. They also represent significant business opportunities for Bombardier Transportation. Given that passenger rail transportation – in particular mass transit – is rightly regarded as a solution to reduce greenhouse gas emissions, Bombardier’s leadership position in this sector will serve all its stakeholders well. Bombardier Transportation and EU CO2 Emission Trading The transport sector is exempt from EU emission trading. However, in many countries of Europe the inclusion of power generation in the trading scheme has a direct impact on some of our customers. Together, by working with our customers, through new product development “designed for environment” as described throughout this report, and through industry initiatives we are addressing the issues presented by the need to reduce CO2 emissions.
Carbon Disclosure Project www.cd-project.net
The Environmental Impact of Production
Production has long been an important lever in helping to protect the environment. A reduction in our use of resources offers plenty of opportunities to lower costs. Here at Bombardier Transportation, we have yet to fully exploit that potential. That is why we have defined clear reduction targets for all our sites worldwide over the coming years.
34
The Environmental Impact of Production
35
Energy Consumption per 200,000 Hours* in Gigajoules 12,800
11,841
11,036
11,858
11,437
new developments in process and plant loading, energy consumption has risen between 2003 and 2004, whereas from 2002 to 2005, a decrease of 1 % annually as compared to a target of 3 % was observed.
9,600 6,400 3,200 0
2002
2003
2004
2005
2006 target
Energy Consumption in Absolute Figures* in Gigajoules 3,600,000
3,100,054
2,827,566 2,907,777
2,700,000
2,335,393
1,800,000 900,000 0
2002
2003
2004
2005
Energy Consumption
Special Measures at Select Sites Bombardier Transportation invited the British governmentfunded group Action Energy to our site in Derby, UK, to help identify potential savings associated with energy use. The resulting report highlighted examples for reducing energy consumption; for example, determining the amount of leakage from compressors. To cite other measures, an information session was held in Bruges, Belgium, explaining good practices to our employees. The internal objective is to reduce energy costs by 10 %. In Randers, Denmark, 212 smaller lowheat insulating windowpanes were replaced by highinsulating ones. We installed automatic light switches in changing rooms and bathrooms in several buildings and equipped the light in some buildings with a timer so they turn off automatically. We also replaced an insulated brick wall with a heat-insulating gate in one of the buildings.
Our target Reducing specific energy consumption/greenhouse gas emissions** by 3 % annually.
In general, Bombardier Transportation has continuously reduced the overall energy consumption at all of the plants reported here for a number of years. However, due to changes in the number of sites we have as a result of the acquisition of Daimler Chrysler Rail Systems in 2001 and
A workshop building in Trapaga, Spain, received a new heating system with radiant panels on the roof, thus replacing the former water-run central heating. That generated savings in natural-gas consumption of almost 50 %. We also saved energy by replacing the old roof with a new one with better insulation.
* Reporting years from February 1 to January 31 ** Referenced to 200,000 work hours
Greenhouse Gas Emissions per 200,000 Hours*
Water Consumption per 200,000 Hours*
As of: January 31, 2006 1,000
867
922
As of: January 31, 2006
985
750
3,750
500
2,500
250
1,250
0
2002
36
2003
2004
2005
4,629
5,000
919
2006 target
0
2002
4,024
2003
2004
3,764
2005
2006 target
Water Consumption in Absolute Figures*
Greenhouse Gas Emissions in Absolute Figures*
As of: January 31, 2006
As of: January 31, 2006 260,000
4,126
241,636 226,989 236,153
1,400,000
187,631
195,000
1,212,011 1,057,186
1,050,000
986,665 768,590
130,000
700,000
65,000
350,000
0
2002
2003
2004
2005
0
2002
2003
2004
2005
And also at our Hennigsdorf site, Germany, we managed to reduce heat consumption by improving insulation of the roofs.
water consumption by 50 % since 2002. In total, we achieved from 2002 to 2005 a reduction of specific water consumption by 6 % annually, instead of a planned 3 %.
Water Consumption
Use of Resources The different materials specified in the design phase need to be considered, including those contained in supplied parts and components. Typical materials found in a rail vehicle include steel, aluminum, copper, various plastics, insulation materials, paints, adhesives, sealants, wood and fabrics. The composition of the different materials is as follows: metal (about 80 %), plastics (about 5 %), wood (about 5 %) and glass (2 %). Our vehicles also contain about 1 % of chemicals and around 0,5 % of electronic parts.
Our target Reducing specific water consumption** by 3 % annually. The water consumption at our sites is not especially high, and it is usually limited to our sanitary facilities. Of course, more water is used at sites where we have paint shops and, more obviously, vehicle cleaning operations, but consumption is also higher in areas where water tightness tests of vehicles are carried out without reclaiming water. All of the above also place great demands on reprocessing and the purification of effluents. The ecological impact of water consumption also depends greatly on regional particularities. The majority of our sites are in regions that typically have medium to high precipitation. Nevertheless, we make sure that we use water frugally − and our statistics certainly back that up. The potential to save water is best highlighted at our site in Crespin, France, where we have managed to lower
For example, our production of locomotives in 2005 with an average weight of 84 tons required the following resources per vehicle: 72 tons of steel, 13 tons of other metals and 3.5 tons of plastics (see EPD TRAXX* F 140 MS, e.g.). Typical annual production output of the Kassel assembly site is in the range of 100 vehicles. Luckily, the
* Reporting years from February 1 to January 31 ** Referenced to 200,000 work hours
Waste per 200,000 Hours*
in metric tonnes 32
in metric tonnes 100
27 22
24
18
21
75
16
50
8
25
0
2002
2003
2004
2005
2006 target
0
Hazardous Waste in Absolute Figures*
20,000
4,620
5,330
2003
2004
2005
2006 target
2,000
5,000
2003
19,550 16,712
16,760
2002
2003
16,902
15,000 10,000
2002
2002
4,335
4,000
0
65
83
in metric tonnes
7,115
6,000
64
80
Waste in Absolute Figures*
in metric tonnes 8,000
The Environmental Impact of Production
Hazardous Waste per 200,000 Hours*
2004
2005
high use of natural resources is compensated by the ability to recycle around 95 % of the materials used. Hence, when it comes to environmental issues and natural resources, our focus is not so much on reducing their use, but on limiting the amount of environmentally risky substances (see List of Restricted Substances), such as heavy metals, solvents, and other critical substances. Hazardous and Critical Materials Our target Reducing specific hazardous waste** by 5 % annually. Sometimes hazardous or critical materials have to be used because various key technical requirements must be met. However, according to our list of restricted substances, engineering must report the use of these materials and the reason for using them. While we must follow legal obligations and customer requirements, Bombardier Transportation policy is to also carefully manage the use of those hazardous substances that are not subject to such restrictions. The reduction of hazardous waste quantities over time reflects this policy,
0
2004
2005
at least when excluding the service operations and the waste generated through them. The fact that for new build activities, a decrease only took place from 2004 to 2005 (18 %) is attributed to changes in categorization of hazardous waste, as well as activities in conjunction with site closures. Waste Generation Our target Reducing specific general waste** by 3 % annually. Avoiding or reducing waste clearly is one of the crucial areas for production improvement. It not only results in a reduction of environmental loads, it also helps us to significantly reduce our costs. Any material that must not be disposed of as waste must not be purchased
* Reporting years from February 1 to January 31 ** Referenced to 200,000 work hours Environmental Production Declaration (EPD), TRAXX F 140 MS www.transport.bombardier.com > About us > Sustainable Mobility List of Restricted Substances www.transport.bombardier.com > About us > Sustainable Mobility
37
Recycled Material per 200,000 Hours*
38
Recycled Material in Absolute Figures*
in metric tonnes
in metric tonnes
233
240 180
45,000
165
120
33,601 30,000
91
60 0
57,198
60,000
23,220
15,000
2002
2003
2004
2005
2006 target
and handled beforehand. Similar to what was said regarding hazardous waste, the increase in specific amounts at certain points in time can also be related primarily to site closures in the case of general waste. It is also obvious from comparing figures without service activities that these contribute over-proportionally to waste generation due to cleaning of vehicles and scrapping of components prior to vehicle refurbishment. Materials sent for recycling increased from twice the amount of disposed materials to three times, again primarily related to site closure and restructuring activities. From 2004 to 2005, however, their specific amount decreased by 21 %. Emissions to the Atmosphere This topic focuses on emissions resulting from direct and indirect energy consumption. At Bombardier Transportation, we are in the process of reducing our own heating energy and instead opting for district heating. Generally, this leads to a reduction in CO2, sulphur dioxide (SO2) and nitric oxide (NOX) emissions. Furthermore, we are also committed to a reduction in volatile organic compounds (VOC) from agents used in cleaning and degreasing or as solvents in paints and adhesives. These also pose a threat to the respiratory health of our employees. When emitted into the atmosphere, volatile
0
2002
2003
2004
2005
organic compounds contribute to the greenhouse effect and aid the formation of ground-level ozone. Replacing solvent-based paints with water-based alternatives has been part of Bombardier Transportation’s continuous improvement strategy for several years. However, some clients specifically request solvent-based paints, due to perceived advantages regarding corrosion resistance and surface finish. The switch from solventbased to water-based paints and glues is one example of how environmental improvements are linked to changes in the production processes or customer requirements. Therefore, it is not only Engineering and Design that has a bearing on customer wishes; our sales force can also play an active role in overcoming “historic” customer specifications and requirements, instead providing new, environmentally-sound alternatives. In addition to the data presented above, our environ‑ mental reporting system covers any significant spills. None were recorded during the reporting period. Fines and sanctions for non-compliance with environmental laws/regulations are followed by the reporting system as well. During the reporting period (2005/6), their amount was less than US$ 15,000. * Reporting years from February 1 to January 31
The Environmental Impact of Production
39
Examples for Reducing Emissions to the Atmosphere Wroclaw Locomotives plant,
At the Crespin bogies facility,
Several measures to reduce VOC
Poland: Here we managed to
France, we selected a water-based
emissions were implemented at
reduce the EP (epoxy-resin)
paint for some customers. Follow‑
the Bautzen site, Germany. The
solvents in the preparative paint
ing approval of this painting pro‑
increase in use of water-based
process for BR 185 locomotives by
cess with lower VOC emission by
paint reduces consumption and
using novel painting methods
French customers, it has also been
emission of solvents; electrostatic
(warm painting). The total quantity
approved by other customers.
painting at the small parts paint
of solvents used for the top coat has been reduced by 5 liters per carbody.
Our mainline plant in Crespin defined a new painting process with lower VOC emission and
For BR 185.2, Bombardier
foresees a 15-percent reduction of
Transportation pool, a reduction of
VOC emissions.
paint materials containing isocyanate was possible by exchanging PUR (polyurethane) sealant for MS (modified silicones) sealant,
The Görlitz site, Germany modernized the painting installations and is now able to use water-
shop reduces overspray losses, while using glues with less solvent content reduces hazardous substances at the workstations. At the Siegen bogies site, Germany, more than 60 % of the painting is done with water-based paints.
based paints as well. For example,
In Plattsburgh, U.S., – and at
we used water-based paint on
other sites where a total switch to
Israel-bound double-decker cars
water-based paints is not feasible
For the E 405 locomotive (Trenitalia,
produced at the site. As a result,
– we installed a solvent distiller
Italy), we also managed to reduce
we managed to reduce solvent
to reuse solvents from painting
the quantity of paint materials
emissions and also complied with
operations. That cut the amount
per carbody. We achieved this by
the limits set by the German
of virgin materials and ultimately
reducing anti-slip epoxy and anti-
Solvent Directive.
reduced the amount of hazardous
resulting in the total elimination of isocyanate emissions.
slip hardener from 12 kilograms to 8 kilograms per unit, respectively.
waste generated by the process.
Responsibility for Our Employees
The health and safety of our employees around the world is of paramount importance to Bombardier Transportation. This responsibility for our staff manifests itself in a sophisticated system of health protection and workplace safety. But that’s not all: As a company operating on a global scale, Bombardier Transportation also strives to promote and protect diversity and equality.
40
Responsibility for Our Employees
41
Accidents per 200,000 Hours (frequency)*
4 3
2.5
2
1.6
1.2
1 0
2002
2003
2004
O
ccupational health and safety of employees and environmental protection are considered to be fundamental to corporate social responsibility. The Bombardier Inc. Code of Ethics & Business Conduct addresses self-set requirements for the work environment, business practices and relationships with external stakeholders.
0.9
2005
2006 target
Lost Days per 200,000 Hours (severity)*
Rules and Regulations Bombardier Transportation and its employees are expected to comply with all applicable laws and regulations. We adopt standards, procedures, contingency measures and management systems ensuring that our operations are managed safely, ecologically and in a sustainable manner.
40
To protect their own safety and that of their colleagues and communities, employees are aware of a zero tolerance policy with regard to the use of any substance that could impair their judgment or prevent them from carrying out their duties efficiently and responsibly.
31.6 30
24.1 16.8
20
14.6
10 0
2002
2003
2004
2005
* Reporting years from February 1 to January 31
2006 target
Welder working on a metro carbody, Germany
42
Indicators and Targets Based on a benchmark with best-in-class companies, in 2000, Bombardier Inc. set corporate-wide targets for health and safety performance. Two indicators were defined and used throughout the Bombardier company, from plant to Group Office level: > Loss Time Accident (L.T.A.) Frequency: This indicates the total of Loss Time Accidents resulting in at least one day of absence plus the total of Loss Time Accidents with temporary assignments multiplied by 200,000 work hours and divided by the total number of hours worked. > Loss Time Accident (L.T.A.) Severity: This expresses the total number of lost days away from work (from the first to max. 180 days) plus temporary assignments multiplied by 200,000 work hours and divided by the total number of hours worked.
These definitions differ from the U.S. OHSA definitions for L.T.A., which would not include temporary assignments. We have put in place detailed measures to reduce the accident frequency and severity for all plants. Bombardier Transportation health and safety performance targets for 2004/05 were 1.25 in terms of frequency and 17 in terms of severity. For 2005/06, we reduced the frequency target to 0.5, and to 15 for severity which proved very challenging. Both frequency and severity have been reduced by 90 % over the last five years. Near Misses It is a well-established fact that accidents are usually preceded by a number of incidents that could have
Product Responsibility and Customer Orientation With the support of the European
tors the quality of the investigation,
to near-miss accidents; the results
Union, Bombardier Transportation
the analysis and the follow-up on
are printed in the respective site’s
carried out a project designed to
accidents and near miss accidents
newspaper. Also, “near-miss” inci-
prevent accidents in 2003 at the
carried out by the safety organiza-
dents are recorded and analyzed
plant in Randers, Denmark. The
tion and the employees, and Bom-
in the production area where the
HSE manager very closely moni-
bardier gives increased attention
“near-miss” was observed.
Responsibility for Our Employees
43
happened but fortuitously did not. These are called “near misses”. Employees may detect dangerous situations that could easily result in an accident. Many of our sites have already implemented systems for reporting and following up on such near-misses/dangerous situations. Over time we expect to eliminate near-miss situations.
Health and safety performance is an element in the annual performance assessment for managers.
Dealing with Severe Accidents While we do all that we can to ensure the health and safety of our employees and the creation of safe working environments for both employees and contractors. Unfortunately, severe accidents do happen. Accidents are taken very seriously, regardless of whether our own employees or those of external contractors are involved. The Group has a very thorough Accident and Incident Directive which must be followed. All significant cases are reported to the President of Bombardier Transportation as well as to the Chairman of the Board and CEO of our parent company.
> regular, documented workplace audits by superiors.
Improving Performance Over the past four years, we have delegated the responsibility for improving their individual accident situations to our divisions. To assist them in measuring their improvement we have also introduced checks on implementing certain good practices.
We started to implement the following procedures in 2006: > regular written HSE information for employees.
> system for incentives for HSE achievements. Respective indicators are adhered to at each site and reported regularly.
Percentage of Trainees 2003–2005* including apprentices and management trainees (lower figure) 2.0
1.60
1.62
1.62
2003
2004
2005
1.5 1.0 0.5
44
0
Personal Education Training and development are vital parts of any contemporary “learning organization”. Drawing from the processes in the Human Resources System, we evaluate appropriate training and development needs, the evaluation process itself being fully aligned with the Performance Management Program (part of our Strategic Governance and Leadership System). To ensure training and education is efficient, the Human Resources department works closely with all Bombardier Transportation functions and divisions. Training and development are on offer both internally and via external sources. “Building Effectiveness” is a management seminar consisting of two three-day modules and is on offer at various sites. It focuses on how management can use the means and skills at its disposal to lead staff effectively and with a clearly defined aim. The agenda also includes customer orientation and integrity. So far, these seminars have been offered in German and English but French and Spanish are scheduled to be added in the near future. “Building Leadership” is a 12-month program aimed at a select group of “High Potential” managers. The first block started early in 2006, with the second module to follow in autumn 2006. Some of the areas overlap with “Building Effectiveness” but with the additional components of involving top management directly and utilizing real-life case studies.
A global company like ours has to integrate a wide variety of cultures. That is why we place special emphasis on our intercultural responsibility. As a result, our trainers have developed a seminar on “Intercultural Awareness” which is adapted according to each division’s individual needs. Health and safety is a subject of training activities also. On average, we provide three hours of training annually per employee.
Equal Opportunities We consider ourselves to be the most international rail system manufacturer, a characteristic we can back up with hard facts. At our company, a total of 75 different nationalities speak 20 different languages. We are able to supply a team covering everything from engineering and project management to financing and strategy. The common characteristic of all our teams, anywhere in the world, is that they deliver excellent results, customer satisfaction and a high-performance, reliable product. We treat all our employees fairly, ethically, respectfully and with dignity. The Group offers equal employment opportunities regardless of age, gender, sexual orientation, disability, ethnicity, religion, citizenship, marital status, family situation or country of origin. We adhere to that standard in accordance with the laws and regulations of each country where we do business.
* Data as of December 31
Bombardier Transportation
a guaranteed running time of 24
and close ties with the employers’
embarked upon a global restruc-
months (or 12 months as of 2006).
association provided an added
turing program between 2004 to 2006 to improve its competitiveness. This resulted in the reduction of 7,600 jobs worldwide and the closure of several production plants. About 3,350 jobs in Germany were shed between 2003 and 2006. It proved to be a considerable challenge to maintain the morale and motivation of those unaffected by the measures, as well as to support the ones losing their jobs. Bombardier Transportation was fully aware of the situation and agreed to social plans to compensate the losses. We not only offered the standard redundancy payments but also the possibility of joining a job creation program with
At the same time, the company exploited every possible internal solution which resulted in some
impetus to those measures, as did management’s personal commitment to the matter.
300 employees moving to other
Whenever there were gaps in the
jobs within the organization.
qualifications of employees who
Bombardier Transportation also
were asked to perform a certain
organized job fairs at a number of
task, Bombardier organized and
sites enabling potential employ-
financed training programs.
ers and the Federal Labor Office to offer job positions to those affected by the cuts.
Outplacement advisors often helped provide employees with new jobs, bypassing the jobs
We also applied for and obtained
creation program. We also guaran-
the permission to hire out staff to
teed psychological and sociologi-
other companies which meant that
cal support for our staff with the
some employees could work for
help of our own doctors or social
other organizations on a trial basis.
workers throughout the entire
During those trial periods, the
restructuring process.
company took over all the personnel costs, and its good relations with other companies in the region
Our code of ethics and business conduct protect employees from harassment, bullying and victimization in the workplace. This includes all forms of sexual, physical and psychological abuse. Employees are entitled to work in – and are expected to preserve – a positive, harmonious and professional work environment. On average worldwide, women fill around 10 % of our middle and upper management positions. Currently 24 % of our staff in South America are female, with North America (over 12 %) and Asia (11 %) next in line. In Europe, where Bombardier Transportation has most of its staff, the quota is 10 %, and 6.5 % in Australia. There are no women among the 17 employees in Africa.
As a corporate policy, Bombardier is opposed to all forms of child labor and compulsory labor.
Staff Interests Bombardier Transportation introduced a European-wide works council in 2001, which meets once a year to discuss the Group’s development. The council is made up of employees’ representatives from all the European sites who meet to coordinate the concerns and requests they want to present to the management. Those issues are often workplace- and environment-related. All these concerns are also subject to open debate at regular meetings of the works councils that are part of Bombardier Transportation legal entities in each country.
Responsibility for Our Employees
Capacity Adjustments
45
A Responsible Citizen of the World
As the global leader in the rail sector, we recognize that our business goals must include making a positive difference to the communities in which we work. This extends beyond the creation of jobs and wealth, to include the transfer of our knowledge and expertise where needed, to the demonstration of best practice in every aspect of our operating behaviour at every level, to the
46
A Responsible Citizen of the World
creation of environmentally driven products, systems and services and to the development of an on-going dialogue with the many stakeholders with whom we interact. We acknowledge that these are ambitious objectives that we have set for ourselves. Nevertheless, we are working with our employees, customers and suppliers around the world to turn these statements into reality.
47
B
ombardier Transportation’s divisions and sites around the world are committed to playing a constructive role within their communities. However, in general, the focus for community investment is to consider projects with long-term impact that support youth and education, local culture and arts, and the environment. The education-assistance project of Bombardier’s Chinese joint venture Bombardier Sifang Power (BSP) is one example. Following a proposal by company management, BSP’s labor union offered to help some schools in need of assistance. The Safety and Organization Committee visited six schools and came back with a list of nearly 40 issues that needed to be tackled. After consulting with the schools and company management, the committee finally picked out a kindergarten and two primary schools to assist, with projects including installing new lights in the classrooms, repairing desks and chairs and erecting a soccer goal. This report is about the future of sustainable mobility and we believe that there is no better way to secure the future than to invest in and support education and research. The Group’s divisions have partnerships with a number of universities and research institutes internationally.
48 Vadodara site, India
Our investment in educational and research partnerships is directly related to the work we do. We provide funding for individual scholarships as well as for research into engineering, materials technology, design and manufacturing, at some of the world’s major schools of science and engineering. Bombardier Transportation was also pleased to become the founding partner for PlaNet Finance Deutschland in 2006. This is a brand new initiative for us targeted at poverty alleviation and economic development in association with the micro-finance sector. We expect to report on more tangible investments in this area in our next report.
In Canada, our divisions may refer worthy projects to the J. Armand Bombardier Foundation, a non-profit organization set up by the founder of our company which provides student bursaries as well as scholarships and donations to colleges and universities in Quebec and across Canada. The Foundation also supports several charity and relief organizations each year.
Integrity Bombardier Transportation has built its enviable reputation not only on the excellence of its products and services, but also on the honesty and integrity of its people.
India: An Example for the Transfer of Standards and Know-How in Emerging Markets For over three decades, Bombardier Transportation
With the revamped tap changers it introduced recently,
India has been working closely with Indian Railways,
Bombardier Transportation India is contributing to sustain-
earning a solid reputation as a quality supplier of
ability. Tap changers are electro-mechanical devices used
Propulsion and Signaling equipment. The factory at
for varying the voltage on the primary side of the trans-
Maneja, Vadodara was among the first Bombardier
former to control the speed of a conventional locomotive.
Transportation facilities to achieve ISO 14001 and
Their typical life expectancy is 18 years after which they
OHSAS 18001 certification and the site has been
are usually scrapped.
accident-free for five years, winning several awards for outstanding HSE performance.
Bombardier Transportation India introduced a refurbishment process that produces near-new equipment at approximately 60 % of the cost of new ones. About
A Responsible Citizen of the World
49
The Bombardier Code of Ethics and Business Conduct sets the standard for the ethical business practices and behaviour expected of every employee. As a global competitor, Bombardier Transportation is subject to the laws of many jurisdictions, including nations, provinces, states, municipalities and international bodies. Bombardier Transportation employees must obey the law in each jurisdiction in which we operate. We also comply with anti-corruption legislation in all the jurisdictions in which we operate. This legislation includes the Corruption of Foreign Public Officials Act of Canada (and its amendments), which applies to Bombardier’s global business.
Bombardier’s Code of Ethics and Business Conduct clearly defines how our staff should deal with our cus tomers. Employees are not permitted to accept or offer gifts, invitations or trips abroad. The Code applies at all times, without exception, to all employees at every level. Our suppliers and partners, as well as third parties such as agents are also expected to adhere to the Code. Any employee who is aware of any breach of the Bombardier’s Code of Ethics and Business Conduct must report it to the Compliance Officer at our parent company. All information is treated anonymously and confidentially.
80 % of the parts and components can be re-used, only
development. In addition, Bombardier Transportation
requiring re-machining or re-coating. The whole process
India decided to purchase and re-furbish the facility
results in the conservation of resources at a high value-
that had previously been rented out, and it now serves
added level, and has significant social aspects: The
as a role model for companies in the neighborhood.
cleaning and reworking of the parts is carried out by small suppliers, helping their business grow while having a positive knock-on effect for those working at transport companies. This activity contributes to all three pillars of sustainability: environmental protection, economic benefits, and social
Indian Railways have recognized and appreciated the huge success of this initiative, and the company is using that experience in its long-term strategy planning for maintenance.
GRI Content Index
50
(G3 disclosure items—core indicators only)
1.
Strategy and analysis
1.1 1.2
Statement from the CEO and the COO Description of key impacts, risks and opportunities *
2.
Organizational profile
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
Name of the company Primary brands, products and/or services Operational structure and major divisions Location of organization’s headquarters Countries with major operations (or relevant to sustainability issues) Nature of ownership * Markets served Scale of the reporting organization Significant changes regarding size, structure, or ownership Awards received in the reporting period
3.
Report parameters
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
a) Report profile Reporting period Date of most recent previous report Reporting cycle Contact point for questions regarding the report b) Report scope and boundary Processes for defining report content (e.g. materiality, priorities)* Boundary of report Statement on specific limitations concerning the scope of the report Basis for the reporting on joint ventures, subsidiaries etc. Data measurement techniques and bases of calculations Explanation of the nature and effect of any restatements of information Changes from previous reports (boundary, measurement methods) c) GRI-Index Table identifying the location of the disclosures in the report d) Assurance External verification of the report
2/3 21, 23-25, 32, AR 99
4 5 5/6 4/5 7-9 5 5/7 4/5, 7 7, 45 N/A
interior of front cover interior of front cover interior of front cover back cover interior of front cover interior of front cover not applicable inside cover, 7 N/A not applicable not applicable 50/51 none
4.
Governance, commitments, and engagement
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17
a) Governance Governance structure, including responsibility for sustainability Independence of the supervisory board chairperson Number of independent supervisory board members Mechanisms for shareholders to provide recommendations to the Board Link between senior management compensation and sustainability Processes for the Board to ensure conflicts of interest are avoided Expertise of the highest governance body in terms of sustainability issues Corporate mission, values, and codes of conducts Board-level processes for overseeing sustainability related risks/opportunities Processes for evaluating the Board’s performance on sustainability matters b) Commitments to external initiatives Implementation of the precautionary principle External initiatives that the organization endorses Significant memberships in industry and business associations c) Stakeholder engagement List of stakeholder groups engaged by the organization Basis for identification of stakeholders to engage Approaches to stakeholder engagement (type/frequency) Key topics raised through stakeholder engagement and response by company
5.
a) Economic performance indicators
EC1 EC2 EC3 EC4 EC6 EC7 EC8
Economic performance – Direct economic value created and distributed Economic performance – Financial implication of climate change Economic performance – Coverage of benefit pension plan obligations Economic performance – Significant financial assistance received from government Market presence – Spending on locally-based suppliers Market presence – Local hiring, incl. senior management positions Indirect economic impacts – Infrastructure investments and services provided primarily for public benefit
AR 18 12*, AR 18 12 12 N/A 43 AR 18 N/A 11/12 12* N/A 24*, 26-29* 13, 19, 20 13, 20 18* 19*/20* 19*/20* 19*/20*
Management approach and performance indicators
AR 109/110 32/33* AR 89, 97 N/A 48*/49* N/A N/A
b) Environmental performance indicators
EN1 EN2 EN3 EN4 EN8 EN11 EN12 EN16 EN17 EN19 EN20 EN21 EN22 EN23 EN26 EN27 EN28
Materials – Weight/volume used Materials – percentage used that are recycled Energy – Direct consumption: primary sources used by company Energy – Indirect consumption: primary sources used through energy purchased Water – Total withdrawal by source Biodiversity – Land used in protected areas Biodiversity – Significant impacts of activities on protected areas Emission, effluents, and waste – Total direct and indirect greenhouse gas emissions by weight Emission, effluents, and waste – Other indirect greenhouse gas emissions by weight, e.g. business travel Emission, effluents, and waste – Ozone-depleting substances by weight Emission, effluents, and waste – NO, SO, and other significant air emissions by weight Emission, effluents, and waste – Total water discharge by quality and destination Emission, effluents, and waste – Total weight of waste by type Emission, effluents, and waste – Total number and volume of significant spills Products and services – Initiatives to mitigate environmental impacts Products and services – Percentage recycled Compliance – Fines/sanctions for non-compliance with environmental regulations
c) Social performance indicators
LA1 LA2 LA4 LA5 LA7 LA8 LA10 LA13 LA14 HR1 HR2 HR4 HR5 HR6 HR7 SO1 SO2 SO3 SO4 SO5 SO8 PR1 PR3 PR6 PR9
Labor practices & decent work performance indicators Employment – Total workforce by employment type, employment contract, and region 44/45* Employment – Breakdown of employee turnover by age group, gender, and region N/A Labor/management relations – Percentage of employees covered by collective bargaining agreements N/A Labor/management relations – Minimum notice period(s) regarding operational changes N/A Occupational health and safety – Injuries, absentee rates and work-related fatalities by region 41-43 Occupational health and safety – Prevention and risk-control programs regarding serious diseases not applicable Training and education – Hours per year per employee by employee category 44 Diversity and opportunity – Composition of senior management and breakdown of employees (gender/culture) 45* Diversity and opportunity – Ratio of basic salaries of men to women by employee category N/A Human rights performance indicators Investment and procurement practices – Investment agreements with human rights clauses or HR screening N/A Investment and procurement practices – Suppliers and contractors that underwent screening on human rights N/A Non-discrimination – Incidents of discrimination and actions taken N/A Freedom of association and collective bargaining – Operations with significant risks to collective bargaining and actions taken N/A Child labor – Operations with risk incidents of child labor and measures taken 45 Forced and compulsory labor – Operations with significant risk for incidents of forced labor and measures taken 45 Society performance indicators Community – Policy to manage impacts in areas affected by activities N/A Corruption – Business units analyzed for risks related to corruption 49* Corruption – Employees trained in organization’s anti-corruption policies 12* Corruption – Action taken in response to instances see 49, not applicable Public policy – Positions, participation and lobbying 13, 20, 32* Compliance – Fines/sanctions for non-compliance with laws/regulations 38 Product responsibility performance indicators Customer health and safety – Life cycle stages in which health and safety impacts of products and 15, 27, 37 services are assessed for improvements Product and service labeling – Principles/measures 28/29, Web Marketing communications – Procedures and programs for adherence of laws and voluntary codes 49 Compliance – Fines for non-compliance with regulations concerning the use of products and services N/A
Disclosure on management approach Goals and performance Policy
Human rights
36/37* 38 35* 35* 36* N/A N/A 32, 36 N/A N/A N/A N/A 37 38 22-28 37 16, 38
Economy
Environment
Labor/decent work
Society
Product responsibility
14-16
24, 35-39
14, 42-44
N/A
11/12
15, 26
11
14
14, 44
N/A
11/12
24, 26/27
Organizational responsibility
14
14
N/A
48/49
26, 29
Training and awareness
13/14, 17
14, 44
N/A
12
28
Monitoring and follow-up
15/16
16/17, 42/43
N/A
12
28/29
15
42-45
N/A 11/12, 48/49
23, 25, 30/31
Additional contextual information AR = Bombardier Annual Report 2005/06
12
* No complete presentation as per GRI criteria or only examples
N/A = No information available
GRI Content Index
51
Transportation Sustainability Report 2005/06 Bombardier Transportation
www.transport.bombardier.com
Schöneberger Ufer 1 D-10785 Berlin Germany Tel + 49 30 98 60 7-0 Fax + 49 30 98 60 7-2000 Contact: Sharon Christians Vice President Communications & Public Affairs Schöneberger Ufer 1 D-10785 Berlin Germany
Editorial deadline: October 1, 2006
* Bombardier, BiLevel, MITRAC, Regina, TALENT, TRAXX and ZEFIRO are trademark(s) of Bombardier Inc. or its subsidiaries.
© 2007, Bombardier Inc. or its subsidiaries. All rights reserved. Printed in Germany/1207/BT/02-2007/en
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