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VOLVO BENEFIT FROM ISO 14001

ISO MANAGEMENT SYSTEMS, MAY / JUNE 2003

This is a summary of the article “Finland’s Volvo network and the environment benefit from country-wide ISO 14001 certification” by Matti Sovijarvi in the May / June 2003 edition of ISO Management Systems.

While the motorcar has a major impact upon the environment, car dealerships also generate substantial waste from servicing and repairs. However, Volvo Auto, Finnish importer of Volvo cars, has implemented a network wide ISO 14001 environmental management system (EMS), resulting in significant waste reduction, increased recycling, and benefits to the bottom line.

The first motor trade network to receive ISO 14001 certification, the network encompasses some 50 subsidiary retailers, private authorised dealers and associated insurance and finance companies. They are also the first in Volvo’s global organization to achieve the distinction.

Volvo’s mission to investigate the environmental impact of the motorcar began in the 1970’s with the development of production processes that would put a minimal burden on the environment. One example was the changeover to water based paints. Another has been the “cradle to grave” cycle, from production to dismantling and recycling processes for the S80 model. Every plastic component, for example, is marked by polymer type so the material can be recycled.

Towards the end of the 1990’s the entire Volvo organization was committed to the environmental program, specifically to obtain internationally recognised ISO 14001 certification. Mikko Laurinus was one of the instigators of Volvo’s EMS programme. He emphasizes that while meeting ISO 14001 standards required a major effort, it was a sensible investment in the future. “Adopting the necessary working practices meant training staff and investing in facilities and equipment, but maintaining the EMS is now no more difficult or costly than running a less environmentally aware operation”.

Volvo’s customers are deeply concerned with environmental matters, and buyers are interested in the environmental effects of cars, so Volvo is convinced that investing in the environment is extremely worthwhile, especially in the long term.

A major dealership can produce as much as two tonnes of waste per day, most of which can be recycled or used to produce energy. Volvo has 22 different waste categories and is able to monitor the progress of each. By sorting material to be used as a fuel source and separating small metal objects they have succeeded in reducing the amount of waste that is sent to the landfill from 30% in 1999 to about 9% today. Landfill fees are steadily increasing in Finland, so Volvo derive a direct economic benefit from their environmental efforts in addition to the huge indirect benefits.