Modern Slavery Statement 2017

VOLVO CONSTRUCTION EQUIPMENT HAULERS LIMITED

Our business

Volvo Construction Equipment Haulers Limited is a Motherwell based company which manufacturers, markets, exports and sells construction equipment. Volvo Construction Equipment Haulers Limited is a large enterprise with in excess of 300 employees employed at its Motherwell site.

Volvo Construction Equipment Haulers Limited is a member of Volvo Group, one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing, parts and service. Volvo Group, with its headquarters in Gothenburg, Sweden, employs close to 100,000 people worldwide, has 66 production facilities in 18 countries around the world and sells its products in more than 190 markets.

The Protection of human rights - Policies, TRAINING and follow-up

Volvo Group products are built by people, used by people, and serve people with goods and services. That is why respect for human rights is fundamental to the Volvo Group. People are at the core of what we do and managing human capital responsibly, including respecting human rights and preventing modern slavery and human trafficking, are key to the long-term business success of Volvo Group.

Volvo Group has been a signatory to the United Nations Global Compact since 2001. During 2017 we updated our Code of Conduct and clarified our position for zero tolerance of all kinds of modern slavery. To support our employees in managing related risks, we added a list of concrete examples of what to look out for. Zero tolerance to forced labour and child labour has been part of our Code since 2003. Forced labour, including debt bondage, human trafficking and other forms of modern slavery, is not accepted in any of the Volvo Group’s businesses.

The Code is publicly available on www.volvogroup.com. The Code is complemented by around 20 other policies that describe in more detail how we address and deliver the Code’s minimum standards. For deviations of our Code of Conduct we have a whistle-blower process in place which is also publicly available on our web site.

Supply Chain Approach

Volvo Group recognises that the automotive supply chain is complex. There are often more than 5 tiers of suppliers between the automotive manufacturing company and the supplier of raw materials. In total, the Volvo Group has close to 48,000 suppliers.

Since 1996, our Sustainable Purchasing Program has consistently increased supplier requirements on environmental issues, business ethics and human rights, including modern slavery. Our suppliers must also ensure that they procure compliance by any sub-contractors appointed in connection with our value chain.

To complement our new Code of Conduct, which is mainly directed towards our employees, we are developing a Supplier Code of Conduct, which will replace our current Environmental and Corporate Social Responsibility requirements on suppliers.

Our Activities

Volvo Group’s work to respect human rights is a continuous journey. During the course of 2017, the Volvo Group:

  • Established a cross-functional Human Rights Steering Committee with participants from the Executive Board.
  • Continued with our risk analysis to identify risks of forced labour and human trafficking in our operations and value chain.
  • Commenced our supplier audit pilot program in two of our high-risk countries.
  • Became lead partner in “Drive Sustainability”, a network facilitated by CSR Europe, consisting of the 10 largest automakers in the world.
  • Finalized the pilot of our internal due diligence process to help identify, assess, mitigate and remedy potential human rights violations and risks in our own organization and for people working on our premises.
  • Decided to continue with the internal due diligence process in one additional high risk country.
  • Continued to develop our Responsible Sales process with an increased geographical scope and capacity building in local organizations.
  • Continued our support to “Truckers against trafficking” in North America.

More information on the Volvo Group’s business, our Code of Conduct, our Sustainable Purchasing Program and our sustainability activities during 2017 can be found in the Volvo Group Annual and Sustainability Report.

This statement is made in accordance with the Modern Slavery Act 2015 and has been approved by the Board of Volvo Construction Equipment Haulers Limited.

Signed

Simon Villanueva

Director

July 2018