CSR
Report2017

UD Trucks Corporation

CSR
Report2017

Contents
Message from the Top

02

About UD Trucks Corporation

03

CSR at UD Trucks

05

Feature 1

07

Our Contribution to the Logistics Industry

Launch of
the All-New Quon

Feature 2

11

Our Contribution to Communities

Editorial policy
UD Trucks publishes its CSR
reports for our stakeholders,
describing our approaches andpractices of the company’s
corporate social responsibilities as
our contributions towards asustainable society. This 2017
issue includes feature pages,
casting a light on the all-new Quontruck and the Traffic Safety
Seminar for Elementary SchoolStudents. The articles in the Reportsection present the various
activities arranged by the fiveprioritized themes at UD Trucks.

Scope of report content
This publication is prepared toreport on UD Trucks Corporation,
but it also encompasses certain
activities conducted by the Volvo
Group for UD Trucks as one of its
business areas.
Coverage period
Fiscal year (FY) 2016 (from January
1 to December 31 of 2016), and it
also partially contains contextual
information and data from previous
periods, as well as reports on some
activities conducted in FY 2017 andfuture action plans.
Published in November 201701

Offering Traffic
Safety Seminars for
Elementary School Students

CSR activity report (1) Improving Customer Satisfaction(2) Better Collaborative Relationships with

Business Partners(3) Allowing Employees to Perform to

Their Full Potential

15
20
21

(4) As a Member of Society23(5) Our Environmental Management

25
29

Environmental Data
The Volvo Group33

Message from the Top

As we work towards the vision of“providing the trucks the world needs today,”we pursue solutions to our stakeholders’ challenges.
A company’s social mission is to continue growing with its customers and other diverse
stakeholders, thereby investing the profits it has earned in new business activities and making
contributions to local communities to share enriching experiences with as many people as possible.
To fulfill this mission, UD Trucks has maintained its vision of “providing the trucks the world needs
today” since its foundation in 1935. Paying close attention to feedback from our customers at all
times, we have pursued our goal to provide new products, services, and solutions to help our
stakeholders meet their business challenges.
Moreover, given the impact that our activities may have on society, we also believe that it isvital to contribute to the development of sustainable society as we pursue our business growth byputting more effort into our compliance, risk management, corporate governance, and environmental
action plan.
The all-new heavy-duty Quon truck launched in 2017 symbolizes these approaches we maintain.
The all-new Quon is made with state-of-the-art technology to provide solutions to our customers’
business challenges, such as meeting standards for safety, environmental performance, andproductivity. That is, Quon is a product of UD Truck’s innovative efforts toward sustainabletransport solutions.
While offering innovative trucks such as Quon across the globe, we also wish to remain acommunity-based organization. We hold traffic safety seminars for children and offer an internet
training course for elderly people in the local communities where our business offices are located.
Our environmental action plan has also been making further progress. FY2015 was the yearthat manufacturers were urged to meet their targets specified by the current heavy-duty vehicle
fuel efficiency standards. The results that UD Trucks achieved during that year were acknowledged,
and in 2016, we were rated as a manufacturer that had successfully achieved the goals.
In 2015, the United Nations adopted the Sustainable Development Goals (SDGs), which emphasizes
the importance of innovation and partnerships with stakeholders as part of the efforts to achieve theseventeen Goals to Transform Our World. In the same year, the United Nations Climate Change
Conference (COP 21) adopted the Paris Agreement as a new international framework.
With these international environmental needs in mind, UD Trucks will work on the next
innovation to become a good partner of our stakeholders in Japan and overseas. We will combine
the Volvo Group’s advanced technologies with UD Trucks’ experience, sophisticated engineeringskills, and Gemba spirit, thereby meeting challenges as “One UD” to achieve the full potential of
our organization that boasts the power of integrated manufacturing and marketing.

Yoshihiro Murakami
President and Representative Director
UD Trucks Corporation

02

About UD Trucks Corporation

Going the Extra MileUD Trucks Corporation has more than 80 years of history as a commercial vehicles manufacturer.
We have our vision of “providing the trucks the world needs today” since the foundation, and our businessactivities continue to revolve around it.
As a company in the logistics business that forms part of social infrastructure, we constantly pay close
attention to the needs of society and feedback from people engaged in the logistics industry and make extra
efforts to offer products and services as well as an unsurpassed level of excellence for our customers.
Today, UD Trucks engages in the manufacture and sales of vehicles of the UD Trucks brand. As a memberof the Volvo Group, we also represent the Volvo and Volvo Penta brands, acting as their Japan base.

The history of UD Trucks
1935 Establishes Nihon Diesel Industries, Ltd. in Saitama,
Japan, aiming at producing diesel engines

1990 The launch of the Big Thumb with improved low
emissions, comfort, and safety

1938 Completion of the first diesel engine

1996 Establishes Hangzhou Dong Feng Nissan Diesel MotorCo., Ltd. in a joint venture in China

1939 Completion of the ﬁrst diesel truck, which undertooka total of 3,000 km legendary test run

2006 AB Volvo becomes a major shareholder in the Company

1946 The company is renamed Minsei Sangyo Co., Ltd.

2010 The company name is changed to
UD Trucks Corporation1950 The company is renamed Minsei Diesel Industries, Ltd.
1955 Birth of the original UD engines
1958 The launch of Japan’s first truck with an over 10-ton
payload, 6TW, leveraged in the construction of the
Shinkansen network
1960 The Company is renamed Nissan Diesel Motor Co., Ltd.
1962 Ageo plant commences its operation1975 The launch of the medium-duty truck Condor

03

2004 Birth of Quon, UD Trucks’ ﬂagship heavy-duty truck

1942 The company is renamed Kanega-Fuchi Diesel Co., Ltd.

2013 Birth of Quester, a brand new heavy-duty truck
developed for global growth markets
2014 Merger with a sales company
UD Trucks Japan Corporation
The launch of light-duty truck Kazet
2015 Celebration of the company’s 80th anniversary
2017 Birth of the all-new Quon
The launch of the medium-duty truck Croner andlight-duty truck Kuzer for global growth markets

Company proﬁle (as of January 1, 2017, except for the number of employees)
Company nameDate of foundation
Head office
Capital
Number of
employees

Officers Executive Chairman
UD Trucks Corporation
and Representative
December 1, 1935
Director
Joachim Rosenberg
1-1, Ageo-shi, Saitama 362-8523, Japan
77.5 billion yen
6,307 including contract and temporary employees

Main business

Development, manufacture, and sales of UD
Trucks brand’s heavy- and medium-duty trucks,
as well as the sales of UD Trucks brand’slight-duty trucks; manufacture and sales ofdiesel engines; manufacture and sales of vehicle
components; maintenance of trucks and buses
and sales of service parts; as well as import andsales of Volvo and Volvo Penta brand’s products
VFS Japan Co., Ltd., New-Mech Co., Ltd.,
Volvo Technology Japan Corporation

Domestic groupcompanies

President andRepresentative
Director
Yoshihiro Murakami(as of the end of December 2016)

Director (part-time)
Kerstin Renard

Auditor
Noriaki Fujii

Production sites and facilities
We have a service network of 166 locations across Japan
to offer support for our customers’ business.

Hokkaido

TohokuThe numbers of UD Trucks’ dealers
in the regions (including private dealers)

ChuShikoku

20 15

Sanyo Regional Parts Distribution Center
Kyushu Regional Parts Distribution Center

20

Kinki

15

21.6

Motegi Test Course
Kawaguchi Training Center

19.8

Volvo Penta Office
Kanto

38
Sales of UD Trucks Brand’s Vehicles by Market(thousands of vehicles)

19.0

UD Trucks Headquarters/Ageo Plant

19

Sales of UD Trucks Brand’s Vehicles

Hokkaido Regional Parts Distribution Center
Gunma Parts Distribution Center

Chubu

Kyushu21.3

23

Hokuriku

16(the numbers of vehicles shipped from plants in FY2016)

Latin America

20.4

Asia
Japan
Southeast Asia
South Asia
Middle East
Oceania
Africa

2012

2013

2014

2015

2016

(ﬁscal year)

Total

386
16,772
10,661
4,211
910
990
1,030
2,231
20,419The brands and products sold by UD Trucks Corporation

UD Trucks
UD Trucks brand’s heavy-duty truck Quon,
medium-duty truck Condor, light-duty truck
Kazet, and dedicated models Quester, Cronerand Kuzer for the growth markets.

Volvo Trucks
Import and sales of Volvo brand’s
heavy-duty trucks. Main products
in Japan include Volvo FH 4×2
and 6×4 tractors.

Volvo Penta
Import and sales of Volvo Penta brand’s
marine and industrial engines. Main
products in Japan include inboards, IPS
marine engines and generator engines.

Volvo Construction Equipment
Import and sales of Volvo brand’s
construction equipment. Main
products in Japan include wheel
loaders and articulated dump trucks.

04

CSR at UD Trucks

We pursue activities designed tocreate shared value consistent with
the Volvo Group’s approaches.
Basic approaches to CSR
The Volvo Group’s mission is “driving prosperity throughtransport solutions.” To facilitate the pursuit of its CSR
activities, the Group revised the “CSR and sustainability
approach,” which serve as the framework of Volvo’s CSR
activities in 2016. In the updated framework designed for“driving prosperity” is underpinned by three pillars: ourvalue chain activities, towards sustainable transport, andour role in society. The Volvo Group aims to help develop
a sustainable society by pursuing these activities.
Furthermore, the Volvo Group gives priority tojoining international initiatives and achieving
international goals, including the UN Global Compact
and Sustainable Development Goals (SDGs) as wellas keeping dialogues going with stakeholders.
The SDGs were adopted by the UN General
Assembly in 2015. Of the seventeen goals that must be
achieved, the Volvo Group is emphasizing the following
four “3. Good health and well-being,” “9. Industry,
innovation and infrastructure,” “11. Sustainable cities
and communities,” and “13. Climate action.”
UD Trucks builds its operation upon these approaches
taken by the Volvo Group while maintaining its businessstrategy and brand personality. We make good use of
our expertise, talent, facilities, and other managerial
resources to fulfill our commitment to creating value forour stakeholders and UD Trucks.

CSR and sustainability approach

Priority SDGs

Our value
chain activities
Towards sustainabletransport

Drivingprosperity

Our role
in society

Code of Conduct
The Volvo Group Code of Conduct specifies basic
principles and behavior required to fulfill the Group’s
CSR including “compliance,” “customer satisfaction,”“supply chain management,” and “human rights and labor
practices.” All employees must follow the code. In 2016
the Group developed and rolled out a new e-learning
program to ensure that the Code of Conduct isunderstood and practiced across the Group.

05

The Volvo Group
Code of Conduct (left)
e-learning program
screen (right)

CSR management system
There are dedicated CSR/environmental management
team under the Public Affairs Department that is
responsible for negotiations with national/regional
governments and industrial authorities. They also
engage in collecting information about the CSR-related
activities that are conducted by each division, as well asplanning and managing various company-wide initiatives.
In order to ensure the company-wide alignment,each division appoints its dedicated CSR staff, who meet
regularly to share information cross-functionally and planand discuss specific activities. They also report the
progress in these activities to the top management
board, and receive their instructions, decision-making
and approval.

UD Trucks’ CSR management system
Top Management
Corporate Governance
Division(CSR staff assigned toeach department)

Public Affairs
Department(CSR/Environmental Management)

Sales andAftermarket
Division(CSR staff)

Product
Development
Division(CSR staff)

Manufacturing
Division(CSR staff)

Compliance
We strive to conduct our business in compliance withsuch principles as prevention of misconduct andpromotion of fair competition, appropriate taxation, andno-conflict-of-interest policies as stipulated in the Volvo
Group Code of Conduct. Regular educational programson compliance are provided for employees (including
management) as group training, e-learning, or in any

other appropriate forms to familiarize them with the laws
and regulations such as the competition law andanti-bribery law, as well as the Volvo Group corporate
rules. We also implement whistleblower and auditing
systems to allow suspected cases of non-compliance tobe reported for appropriate corrective actions.

Risk management
The risk management committee has been installed tobolster the operation of the risk management system.
UD Trucks identifies that major natural disasters, fire,
infection, information leakage, and administrative risks
such as involving personnel/labor management are therisks that need to be addressed. Major earthquakes andfire are deemed particularly significant as they may

jeopardize business continuity, and thus we upgrade ourfire prevention systems based on the regular risk audit
reports, conduct periodical drills with an emergency
response unit, and review our emergency plans. We
also prepared the risk management and business
continuity plans in accordance with the Volvo Group’s
Security Policy.

Information security
We ensure information security by following the Volvo
Group’s Security Policy. As part of our efforts, we aredeveloping information security governance thatincorporates the policy.
To be more specific, we manage and operate
electronic information at two places, namely ourheadquarters and highly earthquake-resistant data
center, to prevent our systems from ceasing to work due

to a disaster. We also have enhanced countermeasuresagainst electronic information leakage due to attacks
from outside. Moreover, we hold regular educational
programs for reinforced information security for our
dealers across Japan.
In addition to these actions, UD Trucks follows the
Volvo Group’s Privacy Policy to ensure proper
management and protection of personal information.

06

Feature 1
Our Contribution to the Logistics Industry

Launch of
the All-New
Quon

07

Sustainable truck
transport requires

care forenvironment,
safety anddrivers

Of all domestically transported goods, freight transported by truck makes
up about 90 percent when measured in tons, and about 50 percent in
ton-kilometers. The logistics industry is committed to meeting increasingly
tough environmental regulations, enhance safety measures, and improvetruck drivers’ work environments in order to fulfill its mission to provide
infrastructure critical to Japanese society and its economy.
Comparison of regulatory limits of heavy-duty
diesel vehicles’ exhaust gas emissions(g/kWh)5.0
4.5

Long-term
regulations

4.0
Nitrogen oxide (NOx)(1998–)

3.38

New short-term
regulations

3.0(2003–)

2.0

New long-term regulations(2005–)

1.0
0.7
0.4
0 0.01 0.027

Post-new-long-term regulations(2009–)

2016 regulations
0.18

0.1

Particulate matter (PM)

0.2

0.25

0.3

(g/kWh)Source: 2017 Understanding Automobiles by Looking at Numbers, Automobile Business Association of Japan,
the Road Transport Bureau of the Ministry of Land, Infrastructure, Transport, and Tourism

Quon is a new solution
to the logistics industry’s
challenges.
The concept is“Innovation that puts people first.”
In April 2017, UD Trucks launched the all-new heavy-duty Quon truck. We
applied UD Trucks’ own innovations to the development of the all-new Quonnot just to meet the latest emission standards, but to offer a solution to diverse
challenges that the logistics industry faces.
By “UD Trucks’ own innovations,” we mean more than a technologicalnovelty. As a manufacturer of production goods that forms a part of logistics,
we strive to propose products and services that create new universal value forcustomers, society, and the environment. UD Trucks’ history is synonymouswith the history of the company’s efforts toward the evolution of safe, efficient,
green, and sustainable transport solutions. It is represented by theinter-vehicle distance warning system (Traffic Eye) we adopted before mostcompetitors across the world; the electronically controlled transmission“ESCOT” that is highly operable and fuel-efficient; and the flagship heavy-duty
Quon truck equipped with the world’s first urea SCR system.

Truck with advanced solutions across five essential feature areas
A transport solution must offer five essential features: drivability, fuel efficiency
and environmental performance, safety, productivity, and uptime. The all-new
Quon has significantly advanced versions of these elements.
The cockpit is designed to offer comfortable space to help the driver focus
on driving, and the electronically controlled automatic transmission provides
superior operability. The fuel efficiency accompanied by environmental
performance is highest of all vehicles in the same class, while the vehicle
maintains power. The advanced safety features not just protect the driver,passenger, and freight, but ensure safety in the vehicle’s surroundings. Improved
ease of loading and bodybuilding efficiency coupled with lighter weight enhance
productivity. And our wide-ranging after-sales service helps boost uptime.

08

1

Easier to see, easier to use

Drivability

The cockpit has been completely
redesigned for driver comfort, with
operability and visibility ergonomicallyre-engineered from the ground up. The
ESCOT-VI electronically controlled
automatic transmission adopts a straightshift pattern, further advancing the
Quon’s operability; the disc brakes
provide an outstanding braking
performance. Through these features,the all-new Quon provides a comfortable
driving environment allowing drivers toconcentrate on the road ahead.

Customers’ challenges● Transport efficiency and productivity
need improvement.
● Truck drivers are in short supply.
● Work environments need improvement.

Global environmental
challenges● Exhaust gas emissions must
be reduced (PM, NOx, CO2).
● Noise must be controlled.

2

Cleaner and more powerful

Fuel efficiency andenvironment care

The fuel-efficient, powerful, and clean
11-liter GH11 engine complies withJapanese 2016 exhaust gas regulations,and all models achieve +5% over the2015 fuel economy standards for heavy
vehicles in Japan. The engine generates
powerful torque from low revs up
through a wide RPM range, making theQuon a pleasure to drive. To further
support fuel-efficient driving, the Quon
also features anticipatory solutions thatuse GPS to look ahead as well as asystem that displays driving advice tohelp drivers achieve further
improvement in fuel economy.

4

Improved productivity,
greater functionality

Productivity

SafetyThe all-new Quon, among others,features the UD Trucks Traffic Eye
Brake system (collision mitigation
braking), which uses high-precision
radar and a cabin-mounted camera fordual-monitoring of the road ahead, as
well as advanced driver assistancesystems including Driver Alert Support.
Our new flagship is also fitted with discbrakes featuring excellent heat-releaseproperties for superb and industry
benchmark anti-fade performance.

Mobility society’s
challenges

All-new
Quon’s fiveadvancedfeatures

Every component has been refined torealize an overall lighter vehicle whileachieving gains in load-carrying capacityof up to 200 kg depending on the model.
Improved ease of loading, bodybuilding
efficiency, and smoothness at creeping
speed for approaching loading docks
also reflect our uncompromisingcommitment to boosting productivity forour customers. We have also expanded
the dry wing-body variations available in
the Perfect Quon range and added arefrigeration wing-body.

09

3

Safer and more reliable● Advanced safety measures
are needed.
● Traffic congestion must
be reduced.

5

Extended peace of mind

Uptime

The all-new Quon represents a further
improvement in vehicle reliability anddurability. It is easier to maintain, witha reduced number of parts requiring
regular replacement and longer service
intervals on genuine parts. Moreover,comprehensive after-sales service that
includes maintenance, a service
agreement, and the latest telematics
services keeps customers’ vehicles inthe best possible condition to boost
uptime to the maximum.

VoiceProduct Planner:

Product Developer:

My purpose is to help customers
achieve business success.

Look to the all-new Quonfor quality.

Since new exhaust gas regulations were scheduled
to be enforced in 2017, we first had to identify how
to meet the requirements of the regulations as weplanned the all-new Quon. We also had in-depth
discussions about what the logistics industry needs,
and what unique contributions UD Trucks can makeby tapping into the strengths of the Volvo Group thatboasts international perspectives and insights. Then
we reached the concept “Innovation that puts
people first.”
The concept represents our decision to produce
a vehicle that entices drivers to hop into the cockpit
and makes them happy to drive it, in addition tooffering environmental performance, improved
productivity, and efficiency. It led to the creation of
key features such as the further-evolved ESCOT-VI(automatic transmission), the design of the driver’s
seat, and advanced safety features.
We also plan to advance from Japan tointernational markets. I hope that the all-new Quon
will help as many customers as possible to achievebusiness success around the globe.

We developed the all-new Quon with a greatercommitment to quality than ever. We used about 100
test vehicles for driving tests that covered several million
kilometers under harsh conditions to make sure that the
Quon offers sufficient safety, drivability, and durability.
Some of these tests were conducted in cold
climates to see how the vehicle runs on winter roads.
We traveled all the way to Sweden in addition to
Hokkaido that is our regular test location. We tested
startability, exhaust gas after-treatment, starting andbraking performance on a slippery road at very low
temperatures; simulated the impact of snow andfrost; and assessed the new features andnewly-developed disc brakes. Based on the results ofthese, we worked on the development to enable
Quon to retain its highest level of performance oncompacted snow and frozen road surfaces.
We also conducted crash tests to assess
protective performance for the driver and passenger,
durability tests on a test bench to measure thevibration durability of the cabin and chassis, and othervarious tests. Then the R&D team took measures toaddress the problems found through the testing andconducted another round of tests to make sure theproblems were solved. We repeated this cycle over
and over before completing the final product. We willcontinue listening carefully to what our customers haveto say in order to keep developing improved products.

Aki Hoizumi (left)

Product offering, UD Trucks Brand, Communication and ProductAkira Tateoka (right)

Features, Verification & Validation, UD Trucks Technology

10Feature 2
Our Contribution to Communities

Offering Traffic
Safety Seminars for
Elementary SchoolStudents11

Traffic accidents causedby trucks can beprevented throughroad safety
campaigns

According to the fact sheet published by the World Health Organization(WHO) in May 2017, the world sees 1.25 million road traffic deaths eachyear. In Japan, fatal road accidents involving commercial trucks are on
the decline. The number, however, still exceeds the target set by theJapan Trucking Association, which means that the promotion of roadsafety remains a major task the country needs to tackle. Although
accidents caused by heavy-duty trucks in particular often lead to graveconsequences, the opportunities for the public to learn about those
accidents are limited in their daily lives.
Numbers of fatal road accidents by commercial trucks
400 (accidents)

372(accidents per 10,000 vehicles) 4

349

300

2.9
200

330
2.7

308

3

258
2.5

2.1

100

2

1

0

2012

2013

2014

2015

2016

The number ofaccidents per
10,000 vehicles
is 2.1, greaterthan the targetof 2.0*0(year)

This chart has been prepared according to statistical data from the Japan Trucking Association.
Light-duty vehicles are not included in the commercial trucks in the survey.
* The initial target specified in the 2009 General Safety Plan for Commercial Vehicles.

To reduce road accidents involving trucks
to zero, we offer a hands-on
educational programon road safety.
The program focuses on leading causes ofroad accidents and how to behave safely.
Saitama Prefecture has continuously ranked among the worst prefectures forthe numbers of fatal road accidents caused by commercial trucks: 1st in 2013,
3rd in 2014, 5th in 2015, and again 1st in 2016*. As a truck manufacturer
based in Saitama, UD Trucks hoped to help reduce road accidents. This is
how we began to plan the traffic safety seminars for school children.
This initiative aims to help children understand what they should do to staysafe around a heavy-duty truck and other vehicles. It is also linked to the“Stop, Look, Wave” campaign, a road safety program that the Volvo Group haslaunched across the globe. The hands-on seminar focuses on three points:
teaching a truck’s blind spots; teaching the difference in circular arcs that front
and rear inner wheels follow when a truck makes a turn; and having children
think what to do to stay safe by the roadside.
* Source: Statistical data from the Japan Trucking Association. Light-duty vehicles are not includedin the commercial trucks in the survey.

The first seminar was held in Ageo where UD Trucks is based.
In June 2016, with help from Ageo City’s board of education, we held the firsttraffic safety seminar for fourth graders of an elementary school in Ageo.
Using real trucks, our employees supported the seminar as operation staff
and instructors.
Children who participated said, “There were more spots I couldn’t see fromthe driver’s seat than I’d thought,” and “I’ll step further back when I wait for atruck to make a turn at an intersection.” In 2016 we held the seminars forabout 440 children from four elementary schools. We plan to continue offering
the program in 2017 and thereafter.

12Traffic Safety Seminar for Elementary School Students
Experiencea truck’s
blind spots

Experience
the differencein circular arcs
that front andrear inner
wheels follow
Think what to do
to stay safe by
the roadside

The instructor illustrated a truck’s size,
blind spots, and differences in circular
arcs the inner wheels follow. Then she
had one of the children sit in the driver’s
seat of the real heavy-duty truck and otherchildren stand around the vehicle andasked the one inside the truck who he/she
can or cannot see, thereby showing
dangerous spots around the vehicle.
We had the truck run through a mockintersection to demonstrate how apedestrian can get caught in the wheels
as the vehicle makes a left turn, thereby
showing how dangerous the difference incircular arcs is. We placed an obstacle
acting as a pedestrian waiting for the walksignal in the path of the rear wheels toillustrate the danger more realistically.
Toward the end of the program, children
answered quiz questions about a trucks’
blind spots and the difference in circular
arcs that front and rear inner wheels follow
to refresh their memory, and brainstormed
what they should do to stay safe by theroadside. Moreover, all children sat in theheavy-duty truck’s driver’s seat toexperience the real field of vision fromthere. They left the seminar with a greaterawareness of road safety.

Our dealers also offer
the traffic safety seminars
Our dealers in Yokohama and the
Tohoku region also held the traffic safetyseminars for local school children.

Yamagata Customer Center

Yokohama Customer Center

Internet Training Course for Elderly People
Over recent years, the internet has made a huge amount of day-to-day information available
to the public. However, it has also created a situation in which senior citizens unfamiliar withIT tools have limited access to information.
To help make information accessible to people of all generations, UD Trucks and Ageo
City’s board of education jointly offer an internet training course for local residents aged 60 orolder. Some participants have never touched a computer before. We design the program in a
way that makes them feel comfortable learning while it is enjoyable and instructive.
Our IT department offered a similar program on its own from 2012 through 2014. In 2016, the course was developed into an
activity that involves the whole company. We have been receiving encouraging feedback from the people who took the course,such as “explanations were very clear” and “you provided great support.” The course also serves as an opportunity for our
employees acting as instructors to improve their communication skills by practicing “giving a clear explanation to people theymeet for the first time about what these people learn for the first time.” UD Trucks plans to continue offering the course regularly.

13

VoiceWe received a variety of feedback fromthe children’s teachers.

“““(responses to our questionnaires)

The lesson was planned from children’s
perspective. The explanations were clear ina way that helps children remember what
they have learned.

“
”“
”“
”

Thank-you message from children

Many of the children say they will practice what
they have learned. It was a meaningful seminar.

”””

The children acquired adequate understanding
through the lecture, hands-on experience,and recapitulation.

As teachers, we were inspired to improve oursafety guidance and how we teach it.

We felt assured that the children were in good
hands when we saw many people from UD Trucks
interacted with them in a caring manner.

Since the lesson in this program was hands-on,
we believe the children will apply what theylearned to their behavior by the roadside.

Our Program Operator:

I hope the program will continue to help children—vulnerable road users—to learn about road safety.
As I saw the children seriously working on the lesson, I was sure they understood a heavy-duty
truck’s blind spots and the difference in circular arcs that front and rear inner wheels follow. At
UD Trucks, I develop safe driving support systems for trucks to help drivers drive safely. I believethat the number of road accidents can be reduced when all road users have due regard for thesafety of other users. The traffic safety seminar is an opportunity for me to help children who
are vulnerable road users learn about road safety, and I find the work rewarding. I’d be happy
if I could contribute to a reduced number of road accidents through running the seminar.

Yuichi Hirota Vehicle Electronics & Systems Engineering, UD Trucks Technology

14

CSR activity report 1

Improving Customer Satisfaction
For the continuous improvement of customer satisfaction, UD Trucks strives to capture the latent needs ofcustomers and the society, reflect them in our products and services, and share beneficial information throughvarious events and communication activities.

Basic approach to our customers

Major activities

Offering products and services that
respond to the needs of customers
and the society

Product Development Division

At UD Trucks, we consider our founder Kenzo Adachi’s
words “To provide the trucks the world needs today” as
the cornerstone of our business.
For that, we seek not only to understand current
customer and societal needs but also to foresee thoseof the future, and hence continue offering products andservices that always meet needs. We aim to improvecustomer satisfaction by launching high-quality
products that excel in durability and reliability, adopting
advanced safety technologies that respond torequirements of the society, and by supporting
customers who use our products.

▌Securing and improvement of quality

Quality management policy

Pursuing quality in all businessactivities
Continuously offering high levels of satisfaction forcustomers through products and services with first-classquality is one of the social responsibilities ofmanufacturers. Under the Volvo Group’s Quality Policy,
which bases itself on “customer focus,” UD Trucks
ensures and improves quality in all business activities
from R&D, production, sales, to aftermarket services.

Quality management system

Acquiring the ISO9001 certification
UD Trucks attained the ISO9001 certification, aframework of international standards on quality
management systems. In FY 2002, our Manufacturing
Division and, in FY 2016, our Product Development
Division acquired the ISO9001 certification.
Through a PDCA cycle (Plan, Do, Check, Act), we
will continually advance improvements for the further
enhancement of quality.

15

Quality management usinga group-wide common process
In the Product Development Division, in order to securehigh quality in products that are developed incross-functional projects within the Volvo Group as well,
we incorporate a process that is consistent throughout
the Volvo Group. We also set checkpoints at each stageof development, where we confirm achievement levels of
quality related targets such as in performance,
functionality, durability, or reliability. By implementing
such a process, not only has quality advanced, but timeused for development has been optimized as well.
Manufacturing Division

Quality improvement through UD Trucks’
original quality management methods
In the Manufacturing Division, UD Trucks adopted an
original control method, and in accordance to the definedprocess, production or quality nonconformance that
occurs during deliveries of parts or production processes
is checked daily in an effort to secure the intended quality
levels. UD Trucks’ quality management method, which
pursues further levels of improvement, is incorporated inother plants of the Volvo Group.
In addition, to increase awareness for quality among
employees, every November is designated as the“Quality Month,” and during the month, every
department reconfirms processes, status of measures
implemented for past defects, and pays effort to elevatetechnology levels.
Aftermarket Division

Diverse initiatives for the improvement ofaftermarket service quality
For our customers’ peace of mind in driving our vehicles,
UD Trucks strives to ensure and improve aftermarket
service quality mainly by polishing the skills of ourservice mechanics.

Training program to improve customers’ uptime
The Aftermarket Division has hosted the training
program “Quality Technical Conference” every year
since 2013 to share the latest product quality andtechnical support cases, and thus strengthen theknowledge of our mechanics. From 2016, the name has
been changed to “Uptime Conference,” and theconference now further focuses on the improvement of
uptime in customers’ vehicles.
The 2016 conference was held in December at
Nagoya, and about 400 mechanics and service parts
engineers from 166 dealers nationwide participated.
Activities in the conference included technicalexplanation on themes such as engines and vehicles,
lectures for mechanic leaders on management processesof quality issues, and workshops to develop teamwork
among staff. Furthermore, employees from the ProductDevelopment and Manufacturing Divisions presented on
work closely related to aftermarket services, and it was asignificant opportunity to share knowledge and align on
goals to increase customers’ uptime across divisions.

Through continuation of the contest, UD Trucks willcontinue efforts to offer excellent services to customers.

Efforts for service improvement in the field
In order to prevent the need for re-servicing at dealers,
the Aftermarket Division makes sure that each workshop
analyzes their re-servicing cases and reports key factors
to the division. In doing so, when there is a criticalre-servicing case, a meeting is called within the dealer todiscuss corrective measures. The corrective measures
are shared to dealers nationwide through theAftermarket Division in order to prevent future
occurrences of similar re-servicing.

Disclosure of information on product quality
Aftermarket competition events on a global level
As an effort to enhance skills of employees involved inaftermarket operations at Japanese and overseas UD
Trucks dealers, technical skill contests “UD Gemba
Challenge” are held. For the second event contest, heldin 2016, representative teams that were selected
through preliminary rounds in respective countries joined
the final match that was held in November at
headquarters. From Japan, 4 out of 127 teams earned
berths to the final round.
At the final match, a total of 11 teams from Japan,
Taiwan, Thailand, Indonesia, Singapore, and South
Africa were assigned to either of the two categories,
heavy-duty trucks Quon or Quester, and competed ontechnical skills at a venue set up like the actual field.
Results were the Indonesian team in the first place, theJapanese Yokohama Customer Center in the second
place, and the Thai team in the third place.

Pursuit of prompt information disclosure
In an event of defects that may have impact on
customer safety or the environment, UD Trucks
exercises prompt information disclosure in accordancewith the guidelines provided by the Ministry of Land,
Infrastructure, Transport and Tourism of Japan.
Number of cases notified(each year in January‒December period)

2014

2015

2016

UD
TrucksVolvo
TrucksUD
TrucksVolvo
TrucksUD
TrucksVolvo
TrucksRecall

5

2

4

2

4

3

Improvement
measures

0

0

0

1

0

2

Services
campaigns

3

0

1

1

4

6

16

▌Improvement of product safety

Safety management policy

Striving to be a leading company insafe transport solutions
Under the Volvo Group’s Safety Policy, which calls toeliminate any accidents caused by our products, UD
Trucks engages in continued efforts for improvement ofsafety. We focus on furthering our knowledge on how
our customers use our trucks and evaluating potential
safety issues systematically throughout the developmentof products and services. We also strive to provide
products and services equipped with safety features thatcater to customer and market needs as well as therequirements of given transport infrastructure.

at the same time.
To pursue this principle, information on various
upcoming legal matters are centrally managed on acommon calendar; reports on latest information andtrends are communicated every month; and relevant
parties are invited to the “Environment and Safety
Technologies Meeting” to share various information on
Japanese and overseas legal restrictions, industrial
trends, new technologies, and various other information
relating to safety. Where there is a potential issue that
may affect our product development, managers in
sections relevant to advanced development andproduct strategies deliberate and decide on the courses
to take for the products as necessary.
Development and use of safety technologies

Implementation of advanced
safety technologies

Major activities
Monthly meeting on the environment andsafety technologies

Confirmation of product safety throughthorough information sharing
In developing our products, UD Trucks makes it aprinciple to respect and comply with laws andregulations in countries where we operate as well as
the regional/industrial self-imposed regulations whilebasing the development on Volvo Group’s Safety Policy

In response to increasing societal and customer needs
for safety, we engage in the development andpermeation of advanced safety technologies.
In the heavy-duty truck Quon, which was launchedin April 2017, several advanced safety featuresdelivered enhancements on both active and passive
safety. In addition to supporting safe driving for ourcustomers, UD Trucks aims to secure safety for othersurrounding road users at the same time.

Main safety features of all-new Quon
Active Safety—Risk prediction for driver safety• Traffic Eye Brake (brake to reduce collision damage)
Dual monitoring with millimeter-wave radar and camera
dramatically improves detection of the vehicle ahead. If thepossibility of collision is detected, the driver is quickly
warned. If the vehicle reaches a distance where collision ispossible, brakes are applied automatically at the same timeto avoid collision or reduce any damage due to collision.
This was adopted ahead of scheduled reinforcement ofbraking requirements for collision damage reduction(AEBS01 series) in November 2019.
※作動イメージ

Warning tone

Brake!!

Applicationof brakes• LDWS (lane departure warning system)
The camera monitors the traffic lanes on both sides, and if
the driver unintentionally deviates from the lane when at

17

speed 60 km/h or above, it warns with warning indicatorsand buzzers.
Basic Safety—Ensuring safe driving by
reducing driver fatigue• Disc Brakes
It provides reliable braking performance while hauling cargoeven on long descents or on wet pavement.
• EBS (Electronic Brake System)
Stabilizes braking performance through the combination of
disk brakes, ABS (anti-lock brake system), and ASR(anti-slip regulation).
Passive Safety—Minimizing damage• SAFES CABIN
The highly rigid cab loaded with safety features improves
collision safety for the driver. The vehicle is equipped with
FUPD/RUPD (a front and rear underrun protection device)that helps reduce damage to other vehicles and their drivers.

Safe-driving seminar

Providing practical programs thatsuit customer needs
We host “Safe-driving seminars” to further encourage
safe driving of our trucks.
In response to requests from customers, we offer
programs on selected topics from among those such as“safety management in transportation,” “hazards indrunk-driving,” “blind spots of trucks,” “traffic accident
case studies and preventive measures,” “riskavoidance,” and “human error,” and we combine
lectures and hands-on exercises so that acquired
knowledge can be applied quickly.
To maximize effectiveness of the seminars, wecreatively use tools such as images taken from drive
recorders mounted on vehicles involved in actual
accidents and visually recreate the accident situationfor our customers’ virtual experiences so that they can
own the safety issues.
In 2016, a total of 3,415 people participated in 127
sessions (3,901 people through 121 sessions in 2015).
We conducted a survey after the program andasked participants for their feedback on the content,materials provided, lecturers, and time allocation torefine the program and materials.

Major activities
Eco-driving seminar

Support in fuel efficiency andCO2 emission reduction
Since 2007, we organize “Eco-driving seminars,”leveraging our UD Information Service (UDIS)*. The
session aims to provide useful knowledge and practicalskills for green driving, using in-operation trucks tolearn maneuvers and speed-reduction techniques.
Since UDIS can evaluate driving according to factors
such as gear change or speed, drivers’ tendencies canbe objectively examined, and such information cancontribute to fuel-efficiency improvement.
In 2016, we held sessions in 97 locations nationwide
for 1,303 participants (103 locations for 1,384 participantsin 2015). The seminar is backed by survey data, whichindicates a 19% improvement of fuel efficiency after the
program. Thus, it supports our customers to improve fuelefficiency and cut CO2 emissions.
* An original service by UD Trucks in which installed multi-purpose
screens collect real-time information on each vehicle regarding
location, fuel-efficiency, and engine or other conditions of the vehicle(oil pressure and fluid temperature, etc.). The information is analyzed
and provided as reports on fuel-efficiency and operation rates.

UD Extra Mile Challenge▌Customer support

Basic approach to customer support

Contributing to the increase ofcustomers’ productivity throughprovision of beneficial information
and appropriate support
The value of UD Trucks products lies not only whencustomers purchase them but in how much they cancontribute to productivity increase after thepurchase. We aim to have our products and services
effectively support customers’ businesses bycontinuing to offer beneficial information andappropriate support for our customers.

Contribution to improvement oftruck drivers’ driving skills
So that our customers can fully utilize UD Trucks’
products and services, we host a driving competition“UD Extra Mile Challenge.” At this competition,
participants acquire knowledge and technical skills bycompeting on how to improve driving skills, uptime,and cost reduction.
In 2016 as well, the last match of the “UD Extra
Mile Challenge 2016” was held at UD Trucks
headquarters in November. Four teams from Thailand,
Indonesia, Malaysia, and South Africa, which passed
previous preliminary matches, competed using
Quester, the heavy-duty truck for growth markets, andthe Malaysian team became the overall champion.
“The results this time will contribute to increase themotivation levels of our other drivers. This was asignificant opportunity not only for the participating
drivers but also for our entire company,” commented
the winning team.
By supporting the acquirement of driving skills andknowledge through the competition, UD Trucks
engages in the development of drivers with high18

awareness for safe driving and motivation toward
the job.

UD Road Support

Prompt recovery support fora roadside breakdown
UD Trucks launched the UD Road Support* inDecember 2015. In cases of unexpected breakdowns,
our company provides support through our call center
that operates 24 hours, 365 days a year for prompt
recovery. Specially trained employees provide
appropriate solutions based on precise details
confirmed with customers, such as vehicle conditionand location. In addition, if the situation is deemed torequire mechanics, we connect with dealers closest to
the location of the customers’ vehicles and arrange
immediate dispatch. Furthermore, we provide acomprehensive support from first contact received tocompletion of measures, such as notifying thecustomer of mechanics’ estimated time of arrival or
preparing reports when the servicing is completed.
With this system, while precise information isprovided in a timely manner to drivers, who are understress from the unforeseen breakdowns, mechanics
can concentrate on their recovery work, and thus
enables further efficiency in solving problems.

Customer Contact Point

Reflection of customer feedback to
product improvement andbusiness activities
We provide our customers with a toll-free customer
contact point, where we respond to calls for inquiries,
opinions, and requests from our customers. We havedeveloped manuals for each possible question tofacilitate prompt and smooth responses. In May 2016,
we reviewed our internal processes in order to provide
further prompt and appropriate support for inquiries
regarding vehicle troubles.
Moreover, at UD Trucks, customer feedback
collected at the customer contact point is shared to
relevant departments and is reflected in productimprovement and other business activities. The total
number of calls we received were 5,384 and 5,930 in2015 and 2016, respectively.

Informative magazines for our customers

Regular distribution of information on
UD Trucks and topics useful forbusiness management
UD Trucks issues the magazines “Diesel News” and“Roads” for our customers. “Diesel News” covers
information on expert subjects or topics useful forcustomers’ business management, such as talenteducation, labor management, and case studies oncompetitors’ best practices. From a global standpoint,“Roads” introduces activities by UD Trucks and voicesof overseas customers.
Volvo Trucks also publishes its magazine “På väg”(“On the Road” in Swedish), which shares the secrets
in product development from Sweden, worldwide casesof product usage, and product and service informationfor our Japanese customers.

Roads* This service requires prior registration. Please contact your local UD
Trucks dealer for more information.

UD Trucks - Going the Extra Mile since 1935

6
June
2016

人材育成をベースに、運輸事業の新たな価値を創造する～乗務員さん1人ひとりの高いスキルを、
運輸事業経営の基盤に～株式会社クレフィール湖東

仁井原 好一 氏

チームビルディング“おもてなしの心”が試される－

お客様とのコミュニケーション

2014年型Quon ユーザーレポート
サン・フーズ株式会社

この人に学ぶ ――プロフェッショナル・トーク

株式会社 BOOT BLACK JAPAN 代表取締役／靴磨き職人 長谷川裕也 氏

いきいきストレッチング講座

Diesel News

19

特集

明日の郷土を創る
The UD Gemba Spirit
現場を重視し尊重する精神

Roads

ISSUE 1 | 2016
日 本 語 版

CSR activity report 2

Better Collaborative Relationships
with Business Partners
Suppliers and private dealers are invaluable partners indispensable for our business. We strive to develop andenhance our relationships with them, respecting the Volvo Group policies and customer satisfaction.

Basic approach to our suppliers

Purchasing as part of CSR
execution process
Providing not only raw materials and facilities but also
services and consumables necessary in daily work, oursuppliers play an important role in UD Trucksʼ businessactivities. To develop appropriate relationships with
suppliers worldwide, we carry out purchasing activities
in a manner that is compliant to the Volvo Group’spurchasing policies.
Recognizing purchasing activities as part of our
CSR processes, the Volvo Group engages in“responsible purchasing” through improvement of
ethical awareness in supply chain and management ofrisks and aims to contribute to realizing a sustainable
society. Therefore, we ask our suppliers to comply withthe laws of respective countries and with the “Volvo
Group Code of Conduct,” to respect international
agreements such as the UN Global Compact, and toacquire ISO14001 or certifications by other equivalent
third parties for the reduction of environmental load.
In addition, the Volvo Group requests all Tier 1
suppliers to engage in equivalent practices andpromulgate the purchasing policy to Tier 2 and Tier 3
suppliers through them.

Major activities
New CSR questionnair for suppliers

Leveraging evaluation results inall departments involved in purchasing
In November 2016, the Volvo Group implemented a
new CSR questionnaire design. This version allows
suppliers to answer CSR questions directly through asystem. Since it was co-developed with almost all
automobile manufacturers, results can be shared
among the automobile industry. In comparison to thepast, when suppliers had to prepare responses foreach manufacturer, the burden on suppliers has
been alleviated.
The Volvo Group applies this questionnaire to all
suppliers, regardless of whether or not they are part of
the automobile industry, and reflects results in thegroup’s purchasing process.

Measures for issues in conflict minerals

Reinforcement of efforts asa significant gobal issue
Since materials that are high in demand in advanced
countries, such as tin, tantalum, tungsten, and gold aremainly extracted in the African conflict zones, there isan international concern that purchasing from suchregions inadvertently results in funding local armed
groups and perpetuating the warfare. Volvo Grouptakes the conflict minerals issues seriously in its global
supply-chain management and bolsters its responses
to international appeal.
As a part of this effort, the Volvo Group started apilot project in 2016 to confirm usage of conflict minerals
in our company’s products. As a result, no usage ofconflict minerals was found in the examined engines.

Basic approach to private dealers

Partners that seek improvement incustomer satisfaction
UD Trucks supplies products and services to ourcustomers through our own dealers as well as private
ones, including six companies with a total of 32
distribution sites. While respecting locally rooted
business activities, we share a common goal of
improving customer satisfaction. We support theacquirement of higher skills and latest knowledge byoffering them the same opportunities in training or otherevents that we provide to our own dealers.

Major activities
Technical training

Offering opportunities to improve
technical skills
We proactively support aftermarket staff members to
improve their technical skills. Twenty people fromprivate dealers participated in the skill seminar, “Uptime
Conference 2016,” while 12 joined us in the Volvo
Group’s international training event, “VISTA 2015–2016.”

20

CSR activity report 3

Allowing Employees to Performto Their Full Potential
In order to recruit, develop, and appropriately allocate competent talents that can lead the business witha global mind-set, we design and operate an HR system that leverages diverse individual capabilities andpromote efforts to support flexible working styles.

Basic approach to human resource management

Fostering “global andhigh-performing talents”
In order to pursue a business that does not limit its
sight only to Japan, but rather embraces the global
arena, UD Trucks envisions employees that are“globally minded and high performing” as ideal talents.
We seek highly talented people to hire, and also makediligent efforts in developing well-structured training
systems and fair and square assessment schemes.
In designing and operating these systems, we place
an emphasis on the values “respect for the individual,”“pro-activeness,” “diversity and cross-functionality,”“teamwork,” “passion and accountability,” and “opendialogue.” At the same time, we pay attention toemployee awareness survey results and ensure that our
initiatives develop a corporate culture appropriate for
UD Trucks and provide work environments where each
employee can fully exert capabilities.

and through the female employee group, Women's
Inclusive Network (WIN).
In 2016, 227 participants joined the “Diversity andInclusiveness Leadership Training” held for all
managers (57 participants in 2015). Also, during theweek between September 25 and October 1, we held a“D&I Week” to raise awareness for diversity andinclusiveness. During the period, we held a contest
that called to employees for photos that express
diversity, lectures on people with disabilities, panel
discussion events that featured differences in working
among countries, and a “Fika*” as an opportunity for
employees across various
departments andnationalities to discuss andfurther mutual understanding.
* A casual gathering practiced in
Sweden, where people enjoy
casual dialogues over tea breaks.

Panel discussion with employees frommultiple countries

Recruitment and appointments
Major activities
Diversity and inclusion management

Promoting various activities based on
our policies
Based on the Volvo Group’s “Diversity and Inclusion(D&I) Policy,” we strive to realize continuous growththrough diversification of personnel and developmentof environments that allow individuals to perform totheir fullest potential. In the annual employee
awareness survey, we evaluate diversity mainly interms of the parameters of gender, nationality, andage, while the diffusion of the inclusiveness ismeasured through questions such as whether
individuals have a sense of involvement.
Our employees also take a proactive role in D&I
promotion by planning various activities through theDiversity & Inclusiveness Community Japan (DICJ),
where members are elected from different divisions,
What is diversity?
Diversity refers to the state of a group of people who have different
attributes such as gender, nationality, racial background, age,sexuality, religion, political orientation, socioeconomic status, andphysical abilities.
What is inclusion?
Inclusion addresses the conditions in which individuals can feel
respected of their being and accepted by others. This also includes
the sense of being involved and supported by others so that they areable to perform to their full abilities.

21

Promotion of recruitment based on
personal merits and business strategies
and contributions from female employees
We conduct our recruitment activities bearing in mind
individual interest, preferences and abilities as well as
the company’s mid-/long-term strategies. In FY 2016, we
recruited 138 new graduates and 90 mid-career talents.
We also focus on driving the advancement of female
employees, and there are currently 44 female managers
in various departments. Furthermore, to equally offer
opportunities to employees, as a general rule, newpersonnel for all open positions are selected fromcandidates who applied through our job posting system.
Number of employees(as of end of December for every year)
Gender

2015
Number of
employees

2016
Ratio

Number of
employees

Ratio

13.2%

Female

464

7.4%

800

Male

5,769

92.6%

5,282

86.8%

Total

6,233

100.0%

6,082

100.0%

Number of nationalities (2016): 24 countries

Ireland, USA, India, Indonesia, Australia, Canada, Switzerland, Sweden,
Thailand, Germany, Turkey, Nepal, Brazil, France, Vietnam, Peru, Belgium,
Malaysia, Myanmar, Mexico, South Korea, China, South Africa, and Japan

Training and education

Career development support inlong-term perspectives
For the employees’ career development, we include
discussions on development plans between managers
and employees at annual performance evaluations. Also,
through the planning and reviews for our successionplan, we prepare planned talent development for
mid-level to senior management.
The training is based on a combination of the Volvo
Group University programs, which are globally
standardized, and the local training programs, adapted tothe unique business environment in Japan. In addition,
we operate various focus programs such as level-specificleader training sessions and function-centered training
implemented by each business division.

Evaluation and compensation

Semi-annual evaluations upon
12-month objectives
All employees set their annual objectives every year andevaluate their progress with their supervisorssemi-annually. We also run a remuneration system
based on personal performance on the set objectives,with considerations on the team/company performance.

Employee awareness survey

Preparing action plans based on
survey results
We conduct an employee awareness survey every yearwith the intention of promoting better communications
with employees and encouraging their active
participation in the business management.
With parameters, such as an employee’s sense of
pride to be part of the company and levels of satisfaction
with the company, we measure their willingness toparticipate in terms of the corporate values, objectives,and strategies. For the aspects with low scores, weprepare action plans and pursue improvement.
Work-life balance

Striving toward practical systems
So that our employees can efficiently manage both workand their personal lives, we have developed various
systems and policies to support a fulfilling work-life balance.
Major systems and policies to support
work-life balance● Childcare leave● Nursing care leave● Work from home scheme(Temporary or fixed-period work from home)● Flex-time system without core hours● Policies on respect for the individual at workplace(prevention of harassment)

Health and safety at work

Promoting a safe workplace environment
Providing employees with a safe working environment is
not merely a basic corporate responsibility but animportant factor for smooth operation of business. The
Volvo Group focuses on “commitment and participationby everyone,” “prevention and promotion approach,” and“excellence in implementation and execution” as three
key pillars to develop a safe work environment.
Prevention of industrial accidents at production sites
Occupational safety is among the top priorities in our
manufacturing activities. Through our health and safetycommittee, we disseminate information on safety and healthto employees, and we promote mutual cautioning among
employees by holding regular meetings as opportunities
to share information on cases from daily operations.

Topic
Hosting social events with employees’ families and communities
In November 2016, in collaboration with the union, we hosted a social event for employees’
families and the community, “Communication Autumn 2016,” at the headquarters/Ageo plant. So
that participants could enjoy learning about UD Trucks, various programs including tours in
exhibit halls, test driving in test courses, kiosks offering snacks, and superhero shows wereorganized. Participating children were very curious about their parents’ company, and a sense ofunity among employees, families, the company, and the community could be felt during the day.

22

CSR activity report 4

As a Member of Society
UD Trucks’ business is supported by not only customers and business partners but also many other people in society.
We work on our society engagement activities to fulfill our responsibility as a corporate citizen to develop
a relationship of trust with society.

Basic approaches to society engagement activities

We make our business resources
available to society
UD Trucks harnesses its expertise, talent, facilities andequipment, functions, and other business resources as
it works on its society engagement activities. We take aclose look at diverse needs and challenges that our
stakeholders (e.g., local communities where our offices
are located; automobile-related industries) are pressedto address, and, through activities designed to createshared value, we aim to build good relationships withthem to help pave the way to sustainable society.

Major activities
Instructing technical training at automobile
maintenance college

Fostering future automotive engineers
UD Trucks aspires to foster potential talent to contributeto the future automobile industry and offers support foryoung auto-mechanics-to-be in understanding thebeauty in trucks as well as in acquiring practicalknowledge in the field.
In 2011, the Tohoku Region started to offer training
programs on new truck manufacturing technologies andto organize tours at truck workshop buildings forstudents and faculty members at automobile
maintenance colleges. In doing so, the Region helps
them further their knowledge about trucks and truck
maintenance. In November 2016, we invited 40
students aspiring to become mechanics and faculty
members at Kadan Automotive Technical College to the
Sendai Customer Center in Miyagi Prefecture that had
been remodeled in October. From there, we left for atour at our new factory equipped with the latest facilities
for maintenance of commercial vehicles and forshipping out parts for them. We also offered a training
session to present the structure of the heavy-duty Quontruck. Though the college curriculum includes diesel
engines, it is mainly with passenger cars, and many of
the students had no previous experience with truck
diesel engines and components. At the lecture by our
employees at the Region, the students were astonishedto see how large parts and tools for trucks are andlearned how the electronically controlled engine andtransmission of the latest heavy-duty truck are structured
and how a clutter-free work environment and the latest
equipment such as automatic forklifts maintain thefactory’s production efficiency. The training session
seemed to have changed the images they’d had oftrucks and truck maintenance. They commented in the
post-training questionnaire on how they had been
impressed by the tidy factory with the parts and tools
kept in place and how the session completely changed
the image they’d had of heavy-duty vehicle maintenance.
UD Trucks will continue to offer technical training
sessions and factory tours for automotive technicalschools across the country.

Welcoming student visits

Offering an opportunity for high school
students to think about their future careers
In February 2016, 96 second graders at Ageo High School(a prefectural school in Saitama) visited UD Trucks’
headquarters for an Open Office session designed tooffer them an opportunity to consider their future careers.
At the session, our employees illustrated the corporate
activities by the Volvo Group and UD Trucks, and our
young engineers—two females and one male—presented the work they currently engaged in and what
their typical working day looked like to help the young
people have a detailed image of what it is like to work.

Industry-academia collaboration program with
Sophia University

Our contributions to foster talent with
global competence
The Volvo Group offers students a wide range ofopportunities as part of its efforts to foster talent with global
competence capable of working in international settings.
One of such opportunities is the Academic Partner
Program organized in collaboration with universities in
Sweden, France, the United States, and China.
In Japan, we signed a three-year partnership23

agreement with Sophia University in 2014. In thispartnership, the university and UD Trucks work
together to discuss and plan various projects. So far,
we have conducted a 4-week internship program,where students engaged in specific tasks and we
provided scholarships for research projects developed
by students. We also delivered an official module on
global business during the autumn semester, where our
employees participated as specialist lecturers.
In 2016, we launched a global internship programthat sends students to the Volvo Group’s offices outside
Japan for 3 months, and the participants were sent to an
office in the United States. Sophia University values thispartnership program designed to help foster globallycompetent talent. The university decided to extend theagreement for three years starting from April 2017.

Disaster recovery assistance

Recovery assistance for the areas
devastated by the Kumamoto earthquakes
In April 2016, powerful earthquakes hit Kumamoto
Prefecture. Two magnitude-7 quakes and numerous
aftershocks rocked Kumamoto as the epicenter, notonly devastating the local economy and infrastructure
but also causing tremendous casualties. UD Trucks
donated 5 million yen to the disaster-stricken areas
through the Japanese Red Cross.
We also provided information about the locations oftrucks equipped with telematics for ITS Japan throughthe UD Information Service (UDIS) so that the
information was used to figure out transport routes foraid in the devastated region. We had begun to maketrucks’ location information available to relevant entities
as needed in 2014 with a hope of assisting in findingtransport routes for relief supplies after disasters.
Reference● List of actions for disaster aid by ITS Japan
http://www.its-jp.org/katsudou2014/tabid_70/id70_1/● Examples of published information about transport by
ITS Japan’s vehicles
The website shows examples of the latest actions for disaster aid.
http://disaster-system.its-jp.org/map4/map/

donated them to Ageo City
where we are based and to
Rikuzentakata City in Iwate
Prefecture and Motomiya
City in Fukushima
Prefecture, both of which
had been devastated by theGreat East Japan
Earthquake. Now the local
government employees
wear the work outfit for their
daily operations. They offered us letters of gratitude forthe donations that they found helpful. We plan to donate
the workwear also to Saitama Prefecture and technicalhigh schools.
We also donated the stocks of fabrics and zippers
used for making the workwear to two vocational aid
centers in Ageo. These aid centers are for people withdisabilities who make and sell handicrafts such as bags
as part of their community involvement activities. The
fabrics and zippers were used for making their products.

Ageo City Marathon and Half Marathon

UD Trucks supports the success of
the races as a local company
Annual Ageo City Marathon and Half Marathon are heldin the fall. These are the city’s major events that havebeen supported by residents for many years, and morethan 8,000 runners participate in the races each year.
The half marathon is accredited by the Japan Associationof Athletics Federation and enjoys the spotlight as
top-notch runners from universities regularly selected for
Hakone Ekiden (relay marathon) often participate.
As a company based in Ageo, UD Trucks havesponsored the races since 2013 to support their success.
Each year, we give away 1,600 originally designed neckwarmers to children. 80 UD Trucks employees
participated in the 29th race on November 20, 2016.

Workwear as a donation

Providing UD Trucks’ uniform forthe local government
When we decided to use a single design for our
Manufacturing Division’s uniform, we had an extra stockof about 5,000 sets of workwear (tops and bottoms). We

24

CSR activity report 5

Our Environmental Management
Based on our environmental programs in line with the Volvo Group’s policy and medium-/long-term plans forenvironmental management/conservation, UD Trucks is dedicated to contributing toward a sustainable society through the
improvement of product environmental performance and the reduction of environmental load from our business activities.

Environmental management policy

Environmental management system organization

Four programs as our contributions
to a sustainable society
The Volvo Group has taken environmental measures overmany years in accordance with its Environmental Policy.
UD Trucks also follows the policy to pursue “holistic
view,” “continual improvement,” “development oftechnologies,” and “resource efficiency” as componentsof our environmental program, paving the way toward
the sustainable society.

Environmental Chief
Executive Officer

Manufacturing
Division(Cab & Vehicle Assembly)
Environmental
Chief Manager

Product
Development
Division
Environmental
Chief Manager

Manufacturing
Division(Powertrain)
Environmental
Chief Manager

Sales Division
Environmental
Chief Manager

Environmental
Manager

Environmental
Manager

Environmental
Manager

Environmental
Manager

Environmental program

Progress in obtaining ISO14001 certification

Holistic View
Practices to reduce impact on the environment from our
products, business activities, and services with acomprehensive view on the product life cycle

Operating the environmental
management system ineach division/site

Continual Improvement
Initiatives pursued by employees in their work in a dedicated,
continued effort
Technical Development
Proactive and innovative research and development to meetand surpass expectations of customers and society
Resource Efficiency
Practices leading to economizing the use of natural resources
and reducing waste generation

UD Trucks is certified with ISO14001. Starting with thecertification of the Ageo plant in FY1998, our ProductDevelopment Division and other relevant departments
subsequently obtained the same certification before
FY2009.
Today, our Product Development and Manufacturing
Divisions operate the environmental
management system as a business
unit of the Volvo Group, while theheadquarters and Sales andAftermarket Division manage theirown systems as one site in our
diligence to meet the targets andgoals specified in our environmental
ISO14001 certification
activity plans.
Certificate of Registration

This is to certify that the environmental management system ofEnvironmental management system organization

Committed to company-wide
environmental plans through“structural environmental management”
UD Trucks operates a “structural environmental
management” membered by the president as theenvironmental chief executive officer andenvironmental chief managers appointed from alldivisions. This formation is responsible for formulating
medium-/long-term plans of environmental
management and conservation across the company,
and it deliberates and approves a major agenda.
Each chief manager is supported byenvironmental officers and a management team andpursues various activities in accordance with theISO14001, an international standard forenvironmental management systems, as well as withthe company environmental plan.

25

UD TRUCKS Corporation
Main site: 1-1, Ageo-Shi, Saitama 362-8523, Japan
Additional sites according to appendix

has been assessed and registered by Intertek as conforming to the requirements of

ISO 14001:2004

The environmental management system is applicable to

Manufacturing and remanufacturing of Powertrain Products.
Manufacture of trucks - Cab & Vehicle Assembly, Purchasing,
Sales and Central Administration Functions. Logistic Services Japan.

Certificate Number:
Initial Certification Date:
Certificate Issue Date:
Certificate Expiry Date:

0049754-01
26 February 1999
19 December 2016
14 September 2018

Thomas Andersson, CEOIntertek Certification AB
P.O. Box 1103, SE-164 22 Kista, Sweden

In the issuance of this certificate, Intertek assumes no liability to any party other than to the Client, and then only in accordancewith the agreed upon Certification Agreement. This certificate’s validity is subject to the organization maintaining their system inaccordance with Intertek’s requirements for systems certification. Validity may be confirmed via email at
certificate.validation@intertek.com or by scanning the code to the right with a smartphone.

The certificate remains the property of Intertek, to whom it must be returned upon request.

Internal/external audits on the environmental
management system

Regular evaluation of operational
statuses and effectivenessIn order to ensure appropriate operation of theenvironmental management system, we conduct an annualinternal audit based on company regulations. The internal
audits are conducted by a team of qualified audit
committee members who investigate and assess theoperational state of the environmental management system
as well as the compliance with the internal standards
and relevant environmental laws and regulations.
Our environmental management system is also auditedby an external organization every year. The FY2016
external examination found no major recommendations.

Energy saving and mitigation of global warming

Impact of business activities on the environment

Pursuing effective use of resources andminimization of environmental load
at all stages of the product life cycle
UD Trucks analyzes environmental loads at all stagesof the product life cycle spanning from R&D and design
to waste disposal and recycling, thereby offering
environmentally conscious products and pursuing theeffective use of resources and minimizing
environmental loads.

Improvement in product environmental performance

Striving to develop technologies thatenhance environmental performance
UD Trucks is dedicated to comprehensive
environmental protection through the development oftechnologies to reduce fuel consumption and filter
exhaust gases, as well as by controlling
environmentally hazardous materials.

Developing technologies to enhancefuel efficiency
Trucks’ fuel consumption is both a significant burden on
business management cost and a major cause of
CO2 emissions.
For this reason, UD Trucks considers fuelefficiency to be one of the top agenda in its
environmental activities and has been delivering
improvement over many years. In Japan, theHeavy-Duty Vehicle Fuel Efficiency Standards 2015
was implemented, which prescribed the targets of fuelefficiency by vehicle categories in terms of weight andso on, to be achieved by manufacturers within the fiscal
year. During FY2016, more than 97% of the entire units
sold satisfied the target fuel efficiency, and we haveachieved our company target on the average fuelefficiency score since 2012.
In addition to the efforts in improving fuel efficiencyof our vehicles, we continue the nationwide initiative of
Eco-driving seminars, where we provide truck drivers
with lectures and practices on green driving.

Material flow

Input
1. Development
and design

Development oftechnologies●Reduction of exhaust-gas
emissions●Fuel-efficiency improvement●Reduction ofenvironmental load
●Reduction of noise pollution●Enhancement ofrecycling capability

OutputMaterial
components

Energy2. Purchasingmaterials andcomponents

TransportationGreenpurchasing/energy-efficienttransport

CO2
PM/NOxResource
energyResource
energyEnergyWater/
electricity/oil

Tire exchange/
fuelPower/fuel for
facilities/equipment

4. Customer use

5. Waste disposal/

Driving trucks

Disassembly/
sorting

3. Production

Cast/press/heat treatment/machining/
paint work/assembly/inspection

Medium-/heavy-duty truck engines
and components
Reducing hazardous substances/saving resources and energy/
facility maintenance, etc.

CO2
NOx
SOx
Dust
Odor

Effluent

Waste

Noise
Vibration

Energy-efficientdriving

CO2
PM/NOxWaste(disposed tires, etc.)

Noise/Vibration

recycling

Reuse/recycle/
waste collection
and treatment

Waste
ASR
Airbag
CFC

The environmental impact from trucks throughout their lifecycle is mostly attributed to the emissions of CO2 and exhaust gases (PM, NOx) in use.

26

Technologies enhancing fuel efficiency
We have achieved 105% or more success in about
70% of the main models of our heavy-duty truck Quon
against the target set by the Heavy-Duty Vehicle Fuel
Efficiency Standards 2015. This was made possible byintroducing various advanced technologies forenhancing fuel efficiency to improve powertrain
performance (engine and transmission) and fine controlof driving conditions.
Major technologies applied in heavy-duty trucks

Vehicle● Fuel Coach (as a guide for energy-efficient driving)● Foretrack (a function to memorize where slopes are for
anticipatory control)● Reduced air resistance (e.g., an air dam integrated
with the front bumper; a newly designed wind deflector)

Engine● Changed fuel injection system● Changed piston combustion chamber shape● Changed shape of the induction system● Variable speed water pump

Power
train
system● ESCOT Roll (for controlled slowing down during coasting)● Acceleration limiter (for controlling sudden acceleration)● Soft cruise (for controlling speed)

Controlling chemical substances
Development/design phase• Verify use of chemical substances in each process,including at suppliers• Register data with IMDS*1 as necessary
Production phase• Annual registration and reports based on the PRTR
system*2• Implement as internal standards and promote
substitution of hazardous substances• Properly adapt to legal changes*1 Materials database jointly managed by automobile manufacturers
across the world for the purpose of environmental conservation.
*2 A law for managing and controlling the emissions of special
designated chemical substances into the environment: Pollutant
Release and Transfer Register.

Reducing environmental load in business activities

Dedicated to energy conservation,
global warming prevention, andwaste reduction
UD Trucks is proactive in reducing CO2 emissions byfinding energy-efficient items and horizontal rollout ofgood practices, waste-reduction initiatives jointly
tackled with our dealers, expanding green zones in theindustrial areas, and reducing environmental risk.

UD Trucks’ improvement on fuel efficiency
Fuel efficiency achievement rate (%)
104
103
102
101
100
99

Energy saving and prevention of global warming

98

Company-wide initiative to reduce
CO2 emissions

97
96

2010

2011

2012

2013

2014

2015

Figures are a weighted harmonic mean of net sales by units
for medium-/heavy-duty trucks against 2015 figure as 100%.

2016(fiscal year)

Control of chemical substances

Thorough control of chemicals usedin products
In compliance with laws and regulations, as well as with
self-regulated industrial standards about manufacture,import, management, environmentally aware design, andrecycling of chemical substances, we strive to manage
the chemicals we use in our products based on the
Global Automotive Declarable Substance List (GADSL).

27

The Volvo Group is the first automotive manufacturer
who joined the WWF Climate Savers Program* in 2011.
The Group set its own target to reduce CO2 emissions
from the Group factories by 12% of the 2008 figure by
2014. In 2013, the Group had already exceeded theemissions-reduction target (20%).
Continuing on this result, a new target was set in2015 to reduce further 8% on 2013 emissions by 2020,
and we are boosting our activities. In an effort to alignwith this reduction target, UD Trucks also arranges
specific action items and plans through discussions at
our Energy Saving Promotion Council, which ismembered by representatives of each division.
Our 2013 target was to reduce CO2 emissions by
39% from 1990, and we achieved the target by a large

margin at 60.7%. We will continue our diligent efforts in
the reduction to achieve the goal in 2020, accounting forthe emissions due to future growth in production.
* A program for reducing the greenhousegas emissions at the initiative of the
WWF in partnership with world
businesses.

UD Trucks signed a consulting agreement with awaste treatment company in April 2015 to enhance its
waste management system. We ensure compliance
pertinent to waste management by selecting highly
reliable companies for our waste disposal, delivering
required notifications to the government, managing
business forms (manifestos), aggregating the volume ofwaste disposal, and taking other relevant actions.

Waste Reduction

Reducing the environmental load
during waste disposal
In the product life cycle, waste generation is at its peakduring the product disposal at dealers. In view of this,UD Trucks has developed its own waste-management
system and introduced internal standards on wastesorting and management at all our dealers since 2014.
Each dealer has installed dedicated facilities according
to these standards and observes detailed waste sorting.
Furthermore, we use more returnable packaging forservice parts shipped to our dealers and urge them toreuse it.
In the R&D stage, we design our products keeping
in mind efficient use of resources and thatdisassembling should be made easy. This has resulted
in three-way split bumpers, easily separable headlamps
with lenses and LED units that can be replaced
separately, and fenders made of recycled materials.
In the production stage, we work on reducing andrecycling wastes in order to minimize the final volume ofwaste disposal. In FY2016, we cut the final volume ofwaste disposal by 99.8% compared to FY1990. We also
keep our recycling rate over 99% (zero emission) acrossthe company.

Expansion of green areas

Green zone reclaimed on the site of
the old headquarters building
When the construction of the headquarters building wascomplete in 2015, the old building was pulled down toconvert the area into a green zone. We plan to continue
demolishing other old buildings to expand our green zones.

Environmental risk reduction

Efforts to protect the living environment
for residents near the plant
In 2016, the Ageo Plant renewed the fences around thevehicle test course on its premises. The renewed
fences are higher than the old ones to reduce noiseand prevent fallen leaves from being blown into theneighboring residential areas.
We also did improvement work on the retention basinon the east side of the plant as a countermeasure against
sudden torrential rain that has become a common
occurrence over the past years. Now the basin’s capacity
is about twice as large, effectively preventing floods.

Topic
UD Trucks hosts 2016 Environmental Communication
On November 5, 2016, UD Trucks received the mayors of 11 wards in the vicinity of its
headquarters and plant and 4 city employees in the Environment and Economy Department
for the 2016 Environmental Communication.
At the meeting, after the opening speech, our representative presented UD Trucks’ corporate
history and the summary of the company’s current business. Then, the manager responsible forthe environmental policy reported what we do for the environment and our CSR activities for the
local community. After the presentations, we took the group for a test ride on the test course andon a tour of the exhibition hall. We also had a chance to exchange views and opinions.
The participants provided positive feedback, such as that it was a great opportunity forthem to learn about UD Trucks and its diverse efforts and that now they have a clear pictureof what UD Trucks strives to do for the environment and the local community. They also
requested that the company continue and expand these efforts to further develop positive
relations with the community.

28

Environmental Data

Energy/CO2-related data (Ageo Plant, Hanyu Plant, Gunma Parts Distribution Center)
The total amount of CO2 emission/basic unit
Gross emissions

TargetPer vehicle

Gross emissions (1,000 ton-CO2)

Basic unit (ton-CO2/vehicle)

150

120

10

140

137

8

90

6

60

4

69
56

30

55

2

53
35

33

2015

2016

0

0

1990

1995

2011

2012

2013

Light oil

City gas

LPG

2014

(fiscal year)

CO2 emissions by energy source
Electricity

Heavy oil

Coke

Other

Gross emissions (1,000 ton-CO2)

0.5%

140

5.3%
5.9%

0.4%

0.2%

12.4%

3.2%

3.2%

44.3%

44.2%

16.8%

17.9%

0.7%

1.2%

14.7%
17.5%

35

33

43.7%
34.6%
1990

2015

33.3%
2016

(fiscal year)

Heat budget of large-scale natural gas cogeneration

Exhaust loss

36.4%

29

Available heat
F Y2015

63.6%

Exhaust loss

38.6%

Available heat
F Y2016

Input

Input

100%

100%

61.4%

Steam

Power generation

Steam

Power generation

22.1%

41.5%

19.9%

41.5%

Resource-related data (Ageo Plant, Hanyu Plant, Gunma Parts Distribution Center)
Overview of waste disposal (FYs2015 and 2016)
Reused iron andnon-ferrous materials

Ageo Plant
Hanyu Plant
Gunma Parts
Distribution Center

Total waste generated

Recycled

FY2016FY2016

6,110 t6,097t (99.8%)

FY2015: 7,474 t

FY2015: 7,453 t (99.7%)

Fuel chips

Cement raw material

Landfill
FY2016RPF

13 t (0.2%)
FY2015: 21 t (0.3%)

Final waste disposal volume (landfill)/recycling rate
Landfill

TargetLandfill (ton)20,0002,000

99.9

19,26899.8

99.8

Water consumption/basic unit

Rate of recycling

Consumption

Recycling rate (%)
100

Consumption (1,000 m3)
2,500

99.7

2,000

60

1,500

100

40

1,000

50

20

500

89.4
2,273
68.5

0

1990

1995

Basic unit (m3/vehicle)
100

99.8
80

1,000

Per vehicle

11

17

22

21

13

2012

2013

2014

2015

2016

0

80

2,070

60

1,643

40

881

780

678

20

508

0

1990

(fiscal year)

1995

2012

2013

2014

2015

382

0

2016

(fiscal year)

The target figures underwent review from 2004 basedon the initiatives conducted by the Japan Automobile Manufacturers
Association’s Recycling and Waste Reduction Subcommittee.

PRTR data
Ageo Plant (FY2016)
Class

Class 1
designatedchemical
substances

Ordinance
number

Unit: kg/year (mg-TEQ/year for dioxin and other chemical compounds)
Chemical substance

VolumehandledEmissions
Atmosphere

Water

Mileage
Waste

Soil

Removaltreatment

Recycled

Consumption(products)

1

Water-soluble zinc compound

1,065

0

11

0

0

309

0

746

53

Ethylbenzene

23,502

10,907

0

0

0

2,389

10,080126

80

Xylene42,695

15,887

0

0

0

2,605

23,519683

296

1,2,4-Trimethylbenzene

2,900

1,378

0

0

0

660

0

863

297

1,3,5-Trimethylbenzene

5,104

596

0

0

0

53

4,293

161

300

Toluene

9,571

6,562

0

0

0

1,699

186

1,124

438

Methylnaphthalene

519

9

0

0

0

0

0

510

30

Environmental Data

Environmental data of environmental facilities in FY2016(Environment Data Measurement Period: From April 2016 to March 2017)

Ageo Plant
Water quality

Measured item

Unit

Min.

Average

1,117

―

9,573

0

―

5.8–8.6

7.7

6.7

7.4

BOD

mg/ℓ

25 (20)

3.3

1.1

2.2

COD

mg/ℓ

160 (120)

8.8

3.4

5.4

SS

mg/ℓ

60 (50)

ND

ND

ND

N-Hex (mineral oil)

mg/ℓ

5

ND

ND

ND

Phosphorus

mg/ℓ

8

ND

ND

ND

Nitrogen

mg/ℓ

60

7.4

1.3

2.9

Zinc

mg/ℓ

2

ND

ND

ND

Fluorine and compound

mg/ℓ

8

ND

ND

ND

Measured
item

Unit

Regulation
designation

Max.

Min.

Average

Water boiler

NOx

ppm

150

56

46

51

Cogeneration (gas engine)

NOx

ppm

200

110

100

105

NOx

ppm

230

33

10

21.5

Dust

g/m3N

0.2

ND

ND

ND

Unit

Regulation
designation

Max.

Min.

Average

AtmosphereNOx: Nitrogen oxide

Max.

pH

Discharged volume

BOD: Biochemical Oxygen Demand
COD: Chemical Oxygen Demand
SS: Suspended SubstanceND: Not Detected
Figures within parentheses( ) show average per day

Regulation
designation

Facility

Dry furnace 1

m3/dayHanyu Plant
Water quality

Measured item

m3/day

―

47

0

8

pH

―

5.8-8.6

7.5

7.0

7.2

BOD

mg/ℓ

25 (20)

2.1

2.0

2.1

COD

mg/ℓ

160 (120)

3.0

1.2

2.0

SS

mg/ℓ

60 (50)

ND

ND

ND

N-Hex (mineral oil)

mg/ℓ

5

ND

ND

ND

Nitrogen

mg/ℓ

60

20

3.5

12.9

Zinc

mg/ℓ

2

0.10

ND

ND

Measured
item

Unit

Regulation
designation

Max.

Min.

Average

NOx

ppm

180

95

54

74

SOx

3

m N/h

0.493

0.008

0.002

0.004

Dust

g/m3N

0.3

0.007

0.005

0.006

Discharged volume
BOD: Biochemical Oxygen Demand
COD: Chemical Oxygen Demand
SS: Suspended SubstanceND: Not Detected
Figures within parentheses( ) show average per day

Atmosphere

Facility

Boiler heavy oil(1.2 tons)
NOx: Nitrogen oxide
Water cooler/heater

31

NOx

ppm

180

86

54

70

SOx

m3N/h

0.531

0.004

0.004

0.004

Dust

g/m3N

0.3

0.005

0.004

0.005

Gunma Parts Distribution Center
Water quality

Measured item

Unit

Average

―

25

0

7.4

―

5.8–8.6

7.5

6.5

6.9

BOD

mg/ℓ

80

6.2

2.2

4.6

SS

mg/ℓ

20

6.0

1.0

2.8

N-Hex (mineral oil)

mg/ℓ

1

ND

ND

ND

Measured
item

Unit

Regulation
designation

Max.

Min.

Average

NOx

ppm

180

74

62

68

Dust

g/m N

0.2

0.002

0.001

0.002

Facility
Boiler heavy oil
Nos.1, 2 and 3

ISO14001 certification status

FY1998Headquarters/Ageo Plant

FY2002

Product Development Division

FY2004

Kounosu Plant

FY2004

Hanyu Plant*Transferred to UniCarriers Corporation in March 2016

FY2005DRD Co., Ltd.

*Transferred to Tempstaff Co., Ltd. in June 2013

FY2005

Techsus Co., Ltd.

*Acquired by UD Trucks Corporation in July 2013

FY2006

N-Tech Co., Ltd.

*Transferred to Kihara Manufacturing Co., Ltd. in March 2015

FY2008Japan Vehicle Co., Ltd.

FY2009Min.

pH

AtmosphereNOx: Nitrogen oxideMax.

m3/dayDischarged volume
BOD: Biochemical Oxygen Demand
SS: Suspended SubstanceND: Not Detected

Regulation
designation

3

PCB storage status (FY2016)

Ageo Plant*Transferred to Global Component Technologies Corporationin January 2015

*Acquired by UD Trucks Corporation in July 2011

Volvo Logistics Corporation Japan Co., Ltd.
*Acquired by UD Trucks Corporation in April 2014

Reactor

1,000 kg

Discharge coil

40 kg

Condenser

6,019 kg

Stabilizer

11,400 kg

Transmitter*

14,638 kg

Breaker

220 kgContaminated materials(waste clothes, etc.)

10 kg

Total

33,327 kg*Including the weight of the transmitter main body.

32

The Volvo GroupUD Trucks belongs to the Volvo Group, which is one of the world’s leading manufacturers of trucks, buses,
construction equipment and marine and industrial engines. The Group also provides complete solutions forfinancing and service. The Volvo Group, with its headquarters in Gothenburg, Sweden, employs about 95,000
people, has production facilities in 18 countries and sells its products in more than 190 markets.

Strong positions globally
The Volvo Group’s products and services are designed
to help improve society’s functionality. Since many of
the Volvo Group’s customers are in the transport or
infrastructure industry, the Group places a high priority
on products’ reliability and productivity, thereby offering
products and services that contribute to the success of
its customers’ businesses.
The Volvo Group’s competitive products and service

#

2

#

3

#

2

#

in heavy-duty diesel engines

2in buses for target segments
and markets

in construction equipment

in heavy-duty trucks#

network coupled with a wide range of products (e.g.,financial instruments, insurance policies, and leases)
have placed the Group in a leading position across themarkets worldwide. In 2016, the Group was ranked 2ndin the world for the sales of heavy-duty trucks, 3rd for
those of construction equipment, 2nd for heavy-duty
diesel engines, 1st for diesel engines for leisure boats,and 2nd for buses in the target segments and markets.

1in diesel engines for leisure boats

Key performance 2016
Net sales, SEK bn
300

273 283

313 302

Operating income, SEK bn
23.3
20.8
17.6
7.1

2012 2013 2014 2015 2016

Operating cash flow,
Industrial Operations, SEK bn
18.3
6.4
1.5
−4.9

3.5

2012 2013 2014 2015 2016

SEK: Swedish krona

33

5.8

2012 2013 2014 2015 2016

Employeeengagement

Share ofwomen

Total CO2
emissionsWater
consumption

72%

17%

1.4 t/

15.2 m /Share of net sales
by market
North America

27%

SEK M

3 SEK M

South America 5%

Asia 18%
Africa and Oceania 6%
Europe 44%

Share of net sales
by business area
Buses 8%Other 2%Financial services 4%
Volvo Penta 3%

Construction
equipment

17%

Trucks 66%

Corporate strategy
In 2016, the Volvo Group announced the following:
The Group’s new Mission, the Vision needed to fulfill
the Mission, Aspirations that underpin the effort
toward the Vision, and Values around which theGroup’s corporate culture will develop. Shared by all
employees and reflected in all business activities,
they are meant to point the Volvo Group toward theright direction as it works toward further developmentof its businesses that aim to help pave a way tosustainable society.

● Driving prosperity throughtransport solutions● Be the most desired andsuccessful transport solution
provider in the World

MissionVisionAspirations● Have leading customer
satisfaction for all brands
in their segments● Be the most admired employer
in our industry● Have industry leading profitability● Customer success● Trust● Passion● Change● Performance

ValuesStrong brands
The Volvo Group operates multiple brands, including
Volvo (trucks, construction equipment, buses), Volvo
Penta, UD Trucks, Terex Trucks, Renault Trucks,
Prevost, Nova Bus, and Mack Trucks. It also has
partnerships with SDLG, Eicher, and Dongfeng
Commercial Vehicles for joint ventures.
By offering diverse products and services from thesebrands, the Volvo Group meets different needs ofcustomers in both mature and growth markets.

Regular employees 2016
North America

EuropeAsia

46,19055%
16,46919%

Africa andOceania

2,373

Number of
employees

Share ofemployees

3%

14,24517%
South America

4,762

6%

Please visit the Volvo Group’s website for detailed information: www.volvogroup.com

34

UD Trucks Corporation
1-1, Ageo-shi, Saitama 362-8523, Japanudtrucks.com