Shaping the Future of Mobility - Bombardier Inc. · Europe remains the largest market in the world...
Transcript of Shaping the Future of Mobility - Bombardier Inc. · Europe remains the largest market in the world...
Shaping the Future of Mobility
Transportation Sustainability Report
(Including HSE Data for 2005/06)
This report covers 42 locations under the control
of Bombardier Transportation, with one or more
production/service facilities, that have around 100
employees or more. Smaller sites of the Services
and the Total Transit Systems divisions, mostly
located on customer premises, as well as office
locations are included in the health & safety sta-
tistics and may belong to the group of “certifiable”
facilities (if > 150 employees). Provided they have
more than 50 employees (150 until 2004), and
they are not solely offices, they are also subjected
to Legal Compliance Surveys.
In preparing the report we took into consideration
the 2002 Guidelines of the Global Reporting
Initiative (GRI). The table on page 51 presents the
degree to which the present report covers the GRI
3 (2006) indicators.
This is Bombardier Transportation’s first Sustain-
ability Report, although we published a Health,
Safety and Environment (HSE) Report in 2005
based on data from the previous year. In addition,
in compiling the present report we have benefited
from the cumulative environmental reporting expe-
rience of companies we acquired in the past.
For our production plants in Germany (Aachen,
Bautzen, Görlitz, Hennigsdorf, Kassel, Mannheim
and Siegen) environmental statements according
to the Eco-Management and Audit Scheme
(EMAS) are available separately from our website
(www.transport.bombardier.com > About us >
Sustainable Mobility).
The editorial deadline for this report is October 1,
2006. Our next sustainability and social responsi-
bility report is scheduled for 2008. An HSE report
(data for civil year 2006) will be published in 2007.
Regular sustainability reporting forms part of our commitment as a signatory of the International Association of Public Transport (UITP) Charter on Sustainable Development.
OverviewThis report documents the major elements and activities of Bombardier Transportation’s
sustainability management and social responsibility. In line with the fiscal business year,
data-reporting covers the period ending January 31, 2006.
Contents 2 Foreword
4 Company Profile
10 Strategy, Policies and ManagementSystem
18 Stakeholder Dialogue
22 Product Responsibility and Customer Orientation
32 In Focus: Climate Change
34 The Environmental Impact of Production
Global Reporting Initiative (GRI) www.globalreporting.org
Eco-Management and Audit Scheme (EMAS) www.ec.europa.eu/environment/emas
40 Responsibility for our Employees
46 A Responsible Citizen of the World
50 GRI Content Index
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Bombardier Transportation is pleased to present its first
Sustainability Report. This report has been prepared tak-
ing into consideration the 2002 Global Reporting Initiative
(GRI) guidelines. It follows on from the Health, Safety and
Environment (HSE) Report published in 2005, and forms
part of our voluntary commitment as a signatory to
the International Association of Public Transport (UITP)
Charter on Sustainable Development. Bombardier
Transportation was the first rail vehicle manufacturer to
subscribe to the charter in May 2003.
As the global leader in rail technology, we strive to be
profitable, while delivering our promise to customers for
safe and competitive products, to be a preferred employer
and to provide healthy and safe workplaces for all our
employees. In addition, it is our goal to leave to the next
generations a natural environment unspoiled by our indus-
trial activities and products, to the greatest extent possible.
Rail transport is generally considered to be one of the
most ecologically sound means of motorized transport
for people and goods. Working together with our major
customers and research institutions worldwide, we
seek to optimize the environmental performance of our
vehicles and in this way support our customers in the
achievement of their environmental objectives. This
is a particular responsibility of our Engineering teams
in cooperation with our Design for Environment expert
network.
André Navarri President Bombardier Transportation
Wolfgang Tölsner Chief Operating Officer Executive Representative for HSE and Quality Bombardier Transportation
“We seek to optimize the environmental performance of our vehicles and in this way support our customers in the achievement of their environmental objectives.”
Foreword
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When it comes to health and safety, our ultimate goal
is to become entirely accident-free. With this commit-
ment our manufacturing sites have considerably reduced
their safety risks. The number of accidents and lost
workdays decreased by a factor of 10 over the last five
years, reaching world-class status at the end of 2005. All
sites with more than 150 employees operate under HSE
management systems and performance indicators that
are tracked monthly.
More than 90 % of our sites are externally certified
according to the ISO 14001 standard and OHSAS 18001.
These standards provide the foundation for legal compli-
ance and continuous performance improvement.
To ensure legal compliance, Bombardier Transportation
subjects its sites to independent checks every three
years. In Europe, legal compliance checks regarding the
environment are covered by the European Eco-Manage-
ment and Audit Scheme (EMAS) at several sites.
As a global manufacturer and competitor we believe that
we have an obligation to transfer our knowledge and best
practice especially to the less-industrialized countries
where we have a presence. This extends not only to local
technology transfer and employment in the production
of state-of-the-art products, systems and services, but
also in line with our high HSE standards. We are proud to
have been acknowledged by the United Nations Confer-
ence on Trade and Development (UNCTAD) for the HSE
standards we achieved in the transfer of our locomotive
propulsion technology to India. We will seek the same
standards of excellence in our work with partners in the
construction of the Gautrain mass transit system for
Gautang Province, South Africa.
Bombardier Transportation, as a part of Bombardier Inc.
takes pride in designing, manufacturing and servicing
products and systems that facilitate the sustainable
mobility of people and goods. It is our continuous chal-
lenge to protect the health and safety of our employees,
to improve the environmental performance of our activi-
ties and to apply a total life-cycle view in the design of our
products. We consider this to be a fundamental social
responsibility.
We hope that the facts and data reported in the following
pages will allow you to gain a better understanding of the
commitment and progress we are making in environmen-
tal and social responsibility. Please feel free to comment
or ask for more information, either by sending an e-mail
to [email protected] or by calling our
Communications & Public Affairs department.
André Navarri Wolfgang Tölsner
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Fore
wor
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Company Profile The Bombardier Transportation Group is a unit of Bombardier Inc., a global
corporation headquartered in Canada. A world leader in innovative transportation
solutions, Bombardier Inc. is structured around two almost equal-sized activities:
Aerospace and Transportation. From its early beginnings in the Eastern Town-
ships of Quebec, the company’s story spans over six decades of growth and
expansion. Today, some 55,800 people work for Bombardier Inc. worldwide and
millions of people around the world use Bombardier products every day.
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B
Bombardier Inc. is a world-leading manufacturer of
innovative transportation solutions, ranging from
regional aircraft and business jets to rail transportation
systems and solutions. The company is a global
corporation headquartered in Montréal, Canada, with
total revenues of about $14.7 billion. The major
shareholders are members of the Bombardier family.
Details on the shareholders of Bombardier Inc. can be
found in the corporation’s Annual Report. Bombardier
sells its products on all five continents, with a high
concentration in Europe and North America. More than
94 % of revenues are from markets outside Canada.
Bombardier Inc. consists of:
> Bombardier Transportation providing rail transportation systems and solutions
> Bombardier Aerospace producing regional and business aircraft
The Bombardier Company
ombardier Transportation, headquartered in
Germany, is the global leader in rail technology. Its
comprehensive product portfolio includes the full
range of passenger rail vehicles and total transit systems
for airport, urban and mainline operation. This includes
metros; regional and commuter trains; trams and light
rail vehicles; electric and diesel single and double deck
multiple unit trains; passenger coaches, locomotives and
high speed trains; bogies; propulsion and controls as well
as rail control solutions. Bombardier Transportation is one
of the world’s largest providers of fleet services including
full train and fleet maintenance, materials and logistics
programs, the refurbishment, re-engineering and overhaul
of vehicles and components and predictive asset manage-
ment and maintenance.
Bombardier Transportation entered the mass transit mar-
ket in 1974 with the first contract for the metro system for
the city of Montréal, Quebec. Over the years, its growth
has been the result of internally generated international
expansion and acquisition, culminating with the purchase
of DaimlerChrysler Rail Systems GmbH in 2001. Today,
Bombardier Transportation has a presence in over 60
countries with an installed base of over 100,000 vehicles
worldwide.
Picture (left side): Global Headquarters Bombardier Transportation, Berlin, Germany
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Com
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Pro
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Bombardier Transportation Divisions and Group Functions
Chief Information Officer
Procurement / Chief Procurement Officer
Contracts & Legal Affairs
Finance
Human Resources
Mainline & Metro Chief Operating Officer ServicesProject Management & Chief Technical Officer
North America
Total Transit Systems
Rail Control Solutions
Bogies
Operations & Quality
Australia
Propulsion & Controls
Locomotives
Light Rail Vehicles
London Underground Projects
Sales
Strategy
Communications & Public Affairs
Bid Approval Process
President
Health, Safety & Environment
Bombardier nameplate on AGC regional train, France
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Market PositionBombardier Transportation’s divisions hold the No. 1
global market position in eight of the 10 markets in which
the Group operates.
Business LocationsBombardier Transportation currently employs some
28,600 staff at 42 major production and service locations.
Several of these host more than one production/service
facility under separate management. Three plants in
China are joint ventures with only a 25 % Bombardier
share and, due to that, limited influence.
There are around 40 generally smaller sites of the Services
and the Total Transit Systems divisions (most of them <100
employees and mostly located on customer premises), as
well as a few strictly administrative locations.
Worldwide Presence Europe remains the largest market in the world for rail and
therefore Bombardier Transportation’s main focus is in
Europe. Around 21,550 employees are currently employed
in the region. Approximately 5,150 employees work in
North and Central America, while 1,900 employees are
based in Australia/Asia and other parts of the world.
In response to market realities and to remain competitive,
the company carried out a restructuring program in
2004/05. This resulted in a reduction of the workforce
by 7,600 worldwide and the closure of seven facilities.
The sites affected by closure were the production plants
in Amadora, Portugal; Ammendorf, Germany; Kalmar,
Sweden; Pratteln, Switzerland; Derby Pride Park,
Doncaster, and Wakefield, UK. The exercise was under-
taken in a socially responsible manner, ensuring that
employees were treated with respect and fairness.
Financial PositionBombardier Transportation’s total revenue for the financial
year 2005/06 was US$ 6,653 million earnings before
interest and taxes (EBIT) before special items were
US$ 179 million. The majority of turnover (US$ 4,365 mil-
lion) was generated from the sales of rolling stock (includ-
ing mainline and metro vehicles, trams and locomotives)
followed by services such as maintenance and delivery of
spare parts. The business with European transportation
companies – who remain our most important customers
– generated 72 % of turnover.
As of: January 31, 2006Europe 72%
North America 19%
Other 2%Asia-Pacific 7%
Segmented Revenues by Regions (Bombardier Transportation)
Source: Bombardier Transportation, Annual Report 2005-06, www.bombardier.com > Investor Relations > Financial Reports
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Com
pany
Pro
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HQ Bombardier Inc.HQ Bombardier AerospaceCanadaMontreal, Quebec
CanadaThunder Bay, Ontario
CanadaLa Pocatiére, Quebec
USAPlattsburgh, New York
USAPittsburgh, PennsylvaniaMexico
Sahagún
BrazilHortolãndia
United KingdomCentral Rivers
United KingdomChart Leacon
United KingdomCrewe
United KingdomDerby
United KingdomIlford
United KingdomPlymouth
NorwayStrømmen
GermanyHennigsdorf
GermanySiegen
GermanyAachen
GermanyBautzen
GermanyKassel
GermanyMannheim
Bombardier Transportation around the WorldProduction Sites/Services Sites/Global Headquarters (Status: July 2006)
BelgiumBruges
FranceCrespin
SpainTrapaga
SwitzerlandVilleneuve
Global Headquarters (HQ)
Production/ Services Sites
DenmarkRanders
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HQ Bombardier Transportation GermanyBerlin
GermanyGörlitz
ItalyVado Ligure
Austria Vienna
Czech RepublicCeská Lípa
HungaryDunakeszi
HungaryMatranovak
PolandKatowice
PolandLodz
PolandWroclaw
SwedenStockholm
SwedenVästerås
AustraliaDandenong (Melbourne)
AustraliaMaryborough
IndiaVadodara
ChinaChangzhou
ChinaQingdao
ChinaChangchun
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Com
pany
Pro
file
Strategy, Policies and ManagementSystem
Under the leadership of our parent company, Bombardier
Inc., we have adopted a number of policies that demonstrate
our commitment to socially and environmentally responsible
behavior and which govern our day-to-day working practices.
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he Bombardier Inc. Mission Statement,
created in 2004, gives direction to Bombardier
Transportation in our daily business operations.
To fulfill this mission, we adhere to four Core
Values which inspire our actions and decisions,
and which provide a benchmark for everyone.
> Integrity: We behave with integrity and in an ethical
manner in everything we do and say, thereby earning and
maintaining the trust and respect of customers, share-
holders, suppliers, colleagues, partners and communities.
> Commitment to Excellence: Our commitment is to dem-
onstrate excellence in all spheres of our work and in our
interactions with customers, shareholders, suppliers,
colleagues, partners and communities. In addition, we
commit to exercising judgement, professionalism, rigour,
self-discipline, perseverance and team spirit.
> Customer Orientation: We promote a customer-centered
culture that emphasizes outstanding service and meets
our commitments at every level of our organization.
> Shareholder Focus: We are focused on creating sustain-
able shareholder value through developing profitable
products and projects, and soundly managing the busi-
ness for the benefit of customers, shareholders, suppliers,
colleagues, partners and communities.
Core Values www.bombardier.com > About us >Mission Statement and Values
> Our mission is to be the world’s leading manufacturer of planes and trains.
> We are committed to providing superior value and service to our customers and sustained profitability to our shareholders by investing in our people and products.
> We lead through innovation and outstanding product safety, efficiency and performance.
> Our standards are high. We define excellence – and we deliver.
Bombardier Inc. Mission Statement
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Bombardier’s approach to corporate governance has
always ensured that the Corporation’s affairs are effec-
tively managed to enhance value for all shareholders.
This is carried out in a manner that guarantees full
compliance with relevant reporting and regulatory
requirements and the highest ethical standards.
Chief Executive Officer (CEO): The CEO is responsible
for managing and monitoring Bombardier’s strategic
and operational plans. The specific responsibilities of
the CEO include implementing the Board’s resolutions
and policies and providing long-term strategic
orientation.
Office of the President: In December 2004, the Office
of the President was created to help ensure that
Bombardier’s focus is closely aligned with the best
interests of all shareholders and to provide continuity
of leadership while the Corporation’s long-term
strategy for value creation is implemented. The
Office of the President groups strategic and executive
management responsibilities around Chairman and
Chief Executive Officer, Laurent Beaudoin, and
the leaders of the two main operating groups, Pierre
Beaudoin, President and Chief Operating Officer
of Bombardier Aerospace, and André Navarri,
President of Bombardier Transportation.
Board of Directors/Committees: The Corporation’s
Board of Directors has a majority of independent
directors, and all Board committees are comprised
entirely of independent directors. Further details can
be found in the Annual Report of Bombardier Inc.
Corporate Governance at Bombardier Inc.
Code of Ethics and Business Conduct www.bombardier.com > About us > Code of Ethics
Code of Ethics and Business ConductThe Bombardier Code of Ethics and Business Conduct
sets the standard for our ethical business practices and
behaviour. High standards of conduct are demanded
and expected from all employees in their daily activities
and dealings with others. As an international group with
manufacturing and customer operations in over 60 coun-
tries, we are working to have the code adopted in every
country in which we have a presence.
In early 2004, Bombardier Inc. appointed a Corporate
Compliance Officer to ensure full adherence to applicable
laws and regulations and strict compliance with
Bombardier’s Code of Ethics and Business Conduct.
Since then, the Code has been made available to
employees and posted in 12 languages on Bombardier’s
website. In addition, a program of in-depth awareness
training was launched for all managers. The Code outlines
a series of guidelines regarding anti-corruption, political
activities and relations based on a partnership with exter-
nal stakeholders.
The Sustainable Business CaseModern and sustainable mobility is not only a key factor
in the success of an economy; it also forms the basis for
quality of life. Increasing private and commercial traffic
on our roads is having a major negative effect – e. g.
noise and CO2 emissions. Congested roads and cities
also lead to higher levels of stress and lost time.
There’s no easy solution to the problem of congestion
and pollution. Simply building more roads means using
an increasingly large surface area and eroding the coun-
1�
We are also involved in several projects, collaborating
with other similarly dedicated organizations in our sector,
under the umbrella of the International Union of Public
Transport (UITP). The UITP is devoted to improving the
benefits of mass transport and its members include
operators and manufacturers. In 2002, it established a
sustainability working group which developed a strategic
document on contributions by mass transit to sustainable
mobility. It encouraged its members to subscribe to a
sustainability charter launched at the 2003 UITP congress
in Madrid, Spain. The standards for acceptance were
high (including visible top management commitment).
Bombardier Transportation was the first vehicle manufac-
turer to sign the UITP Sustainability Charter.
“This Charter acknowledges the work UITP mem-
bers have already done and its signatories commit to
ensure that the three principles of sustainable devel-
opment – social, economic and environmental – are
embedded in their activities and the development
of the public transport sector remains sustainable
in terms of its social, economic and environmental
impact.”
Charter members commit to:
> Fostering leadership on sustainable development through dialogue and exchange of best practices with all stakeholders.
> Exerting influence on international and government policy to develop a responsible balance between social, environmental and business considerations.
> Facilitating training and mentoring through activities and forums focused on sustainable development practices.
> Adhering to a process of regular reporting on sustainable development practices.
UITP Sustainability Charter
Double-deck coach at Berlin Main Station, Germany
tryside, which in turn poses a great danger to animal
and plant life. It also encourages increased volumes of
vehicular traffic.
For a rail vehicle manufacturer such as Bombardier
Transportation, the concept of a “Sustainable Business
Case” is a significant step forward to more long term
environmentally responsible mobility. Ecological compati-
bility is a major competitive advantage of rail transport
vis-à-vis other modes of motorized travel. This advantage
must be further embedded through continued environ-
mental improvement within the production chain and also
by raising public awareness of the benefits of choosing
the train. That’s why Bombardier Transportation has put
sustainable mobility at the heart of its design, engineering
and operating philosophy.
UITP Sustainability Charter www.uitp.com/Project/susdev_Charter.cfm
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The all-encompassing policy replaced the previously
separate environmental and workplace safety policies.
With the HSE policy we are committed to saving our
natural resources, avoiding environmental damage and
providing our staff with appropriate health provisions. We
also urge our suppliers to adhere to similar principles.
HSE OrganizationIn 2001, Bombardier Transportation combined the areas
of Health, Safety and Environment, a decision that made
the General Managers at all the plants responsible for
adherence to the internal regulations such as developing
HSE improvements and ensuring advanced training is
available for staff.
Bombardier Transportation oper-
ates locally through legal entities,
but is structured along business
units. Maintaining a legally com-
pliant organization with regard to
HSE is a significant task. We have
accomplished it by establishing
a link between the business and
legal entity organization via the
Chief Operating Officer with the
Group HSE department reporting
to him directly. Authorized by the
parent company, Bombardier Inc.,
both of them are entitled to over-
see every legal entity as well as the
divisions and sites of the company
regarding HSE issues.
Legal entities nominate a member
of their management team respon-
sible for HSE and assign HSE
responsibilities to plant general
managers who in turn do the same
vis-à-vis their direct reports. By
delegating the respective respon-
sibilities, Bombardier ensures
that all legally required organiza-
tional regulations, particularly the
appointment of qualified staff and
representatives, are met within the
independent legal entities.
How Bombardier Transportation Meets Its HSE-Related Legal Requirements
Meridian diesel-electric multiple unit, UK
We have made great progress since signing the charter
in June 2003, namely reducing the number of accidents,
developing more efficient resource consumption as well
as publishing an HSE report in 2005. This Sustainability
Report for 2005/06 is the latest demonstration of our
progress.
HSE Policy With coherent and accountable company leadership
growing increasingly important, Bombardier Inc. intro-
duced a new policy for occupational health and safety as
well as environmental protection in 2003, which applies
to all parts of the corporation.
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* Under Bombardier Inc. regulations production/service facilities which
have 150+ employees and are under our management control
HSE policy www.bombardier.com > About us > Social Responsibility
Environmental Statements www.transport.bombardier.com > About us > Sustainable Mobility
HSE coordinators and other experts for workplace safety
and environment protection (in particular, representa-
tives required by legal obligations) support those efforts,
reporting directly to the General Managers.
HSE experts based at the different sites and divisions
report regularly to the head of HSE at the Group’s head-
quarters in Berlin (who in turn has a direct reporting line to
the company’s Chief Operating Officer). If necessary, the
experts have the right to report directly to the respective
management.
HSE CouncilCoordinating all HSE demands and policies of Bombar-
dier Inc’s two groups, Aerospace and Transportation, is
facilitated in the corporation’s HSE Council, under the
leadership of the Senior Vice President Human Resources
and HSE of Bombardier Inc.
Management SystemLiving up to our commitment to deliver superior products
and services – from the initial product strategy through to
the end of the product life cycle – is key for Bombardier
Transportation. To that end, we utilize clearly defined
business processes and a common, integrated Business
Management System.
An important focus of our strategy is the deployment
of the Bombardier Transportation Integrated Processes
(BTIP). BTIP is a business system that integrates all func-
tions and their respective initiatives in order to establish
common processes and systems at every step of the
product life cycle, thus ensuring a smooth workflow and
close collaboration among the various members of our
project teams.
Certified ConformityThe success of this approach in providing effective
control over all aspects of our activities is reflected by
our receipt of a consolidated, multi-site certification in
compliance with the international standards for quality
(ISO 9001:2000), the environment (ISO 14001:2004),
and the British guidance standard OHSAS 18001:1999
(Occupational Health and Safety Management System).
39 of the 41 company facilities eligible for certification*
have been certified according to the environment stan-
dard ISO 14001. The number differs from the number of
locations as there can be several entities under different
management at a location. This means that over 90 % of
our staff work within the perimeters of externally certified
environment-management systems. The seven German
sites (Aachen, Bautzen, Görlitz, Hennigsdorf, Kassel,
Mannheim and Siegen), which in total represent approxi-
mately 40 % of the company’s overall staff in Europe,
are applying the European Eco-Management and Audit
Scheme (EMAS) in addition. They publish their Envi-
ronmental Statements, updated annually. Several other
European sites are currently preparing to apply EMAS.
Strategic Governance and Leadership Systems
Products and Services Delivery Systems
Measuring and Controlling Systems
Support Systems
Continuous Improvement Systems
Superior Products and Services Delivery Process
Bombardier Transportation Integrated Business Process and Systems
Value Creation for Customers
5 Reali-zation� Design3 Start-up1 Product
Strategy
CustomerNeeds � Field
Support� Bid
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Striving for excellence involves
continuously improving the way
we do business, how we apply our
processes, and how we design,
produce and maintain our prod-
ucts. Our Six Sigma program
provides a structured approach to
continuous improvement across
Bombardier. We launched our
comprehensive Six Sigma initiative
as part of an ongoing drive to sat-
isfy and even surpass the chang-
ing needs and expectations of our
customers. The methods and tools
within Six Sigma are applied at
all sites and enable us to give the
highest priority to our customers’
demands as well as to maintaining
low costs. We are convinced that
high-quality production is also the
most cost-effective. For example,
a production system performing
at a level between 2 and 3 sigma
will have a rate of defects cost-
ing some 20 to 30 % of turnover.
These costs can be dramatically
reduced through the systematic
elimination of waste and varia-
tion from processes and products
using the Six Sigma methodol-
ogy. Central to this are statistical
methods that reveal faults in repeti-
tive work processes that would
otherwise go unnoticed. These
techniques where used to great
effect in the HSE sector is the
TTS Division’s development of a
computer-aided process for acci-
dent investigation.
Six Sigma – A Success Factor
Health and Safety certificates according to OHSAS
18001, are already available at 39 of the 41 sites men-
tioned, corresponding to 95 % of staff.
Independent Checks of Compliance with Legal and Other RequirementsSince 2001, all production and service sites with more
than 150 employees have been subjected to legal compli-
ance surveys. Commissioned by the HSE group function,
external, independent experts examine whether all legal
HSE-related requirements have been adhered to, and
monitor the implementation of the parent company’s HSE
policy obligations. In addition, they evaluate the imple-
mentation of HSE training programs and the progress
made from year to year.
In the first cycle, legal compliance surveys were con-
ducted at 52 sites, including manufacturing facilities as
well as some TTS Operations & Maintenance sites. The
legal compliance surveys have emerged as an important
step in minimizing risk, and have also fostered the ongo-
ing improvement process.
The second audit cycle started in 2006. For the first time,
four sites were put to the test in conjunction with an
EMAS audit. Previous surveys had revealed that EMAS
sites did not register any violations in the environment
sector, which was confirmed by the compliance surveys.
We will continue our reviews on a three-yearly basis. At
the EMAS-validated sites, every second review will go
hand-in-hand with EMAS certification. The results of the
compliance surveys and the follow-up reviews are made
available to the Bombardier Inc. Audit Committee and
Bombardier’s Corporate HR/Compensation Committee
on a yearly basis.
Supply Chain ManagementSuppliers contribute a substantial portion to Bombardier
Transportation products and services, which means they
not only have a major impact on the value chain but also
on environmental burdens and social aspects. The
Bombardier Procurement System is designed to ensure
that suppliers fulfill their role as part of a complete team.
Starting with the selection of suppliers, we place ambi-
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tious demands on performance which include a cata-
logue of technical and business-oriented criteria relating
to quality guarantees, internal learning processes, pricing
systems and the ability to deliver the goods. Using these
criteria, Bombardier Transportation strives to learn more
about the status and scope of its suppliers’ environment
and safety management systems.
Our highest assessment goes to suppliers who work with
an externally audited environmental management system
and to cases where a series of ecological criteria have
been considered at the product development stage. In
terms of workplace safety, we prefer suppliers who use
a management system according to OHSAS 18001 or a
comparable standard.
We also expect our suppliers to adhere to the principles
outlined in Bombardier’s Code of Ethics and Business
Conduct, including equality and non-discrimination.
However, HSE criteria currently do not play a decisive
role in the assessment process unless, for example, two
competing suppliers have an identical rating.
Human Resources SystemAs with every company, our success is driven by the
integrity, motivation and enthusiasm of our people.
Bombardier Transportation devotes considerable effort
to its human resources.
The following key processes define our Human
Resources System:
> To identify, qualify, select and hire the best and bright-est to have the right employees in the right role.
> To integrate and support employees in the company and to retain them with efficient processes and procedures.
> To provide an optimal performance environment and to ensure that competencies are aligned with organizational needs, business strategy, culture and core values.
> To transfer, realign, retire or release staff in a manner that is aligned with the organizational needs, business strategy, culture and core values.
> Human Resources identifies and harmonizes the interaction of these elements with other functions. All of the elements are defined in directives, procedures and instructions documented as part of our overall management framework.
Human Resources also works with the Communications
& Public Affairs function on internal communications
programs. The effectiveness of the Human Resources
System and the impact on the organization overall is
monitored through an employee survey conducted every
two years in cooperation with the Communications &
Public Affairs department.
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Stakeholder Dialogue
At Bombardier Transportation we are convinced that a sustainable development and
future-oriented mobility strategy can only be achieved if all participants involved work
together and if an open dialogue and learning process is in place. We rely upon
partnership and cooperation with all our stakeholders. Among these are our employees,
customers, suppliers, neighbors and communities, where we have operations.
1�
s a member of numerous associations and organi-
zations and a partner in related projects, we strive
to share our experiences and to consolidate and
expand our knowledge. At the same time, an ongoing
dialogue with customers, politicians, the scientific com-
munity and non-governmental organizations is an impor-
tant tool within our early warning system for identifying
risks and opportunities.
Shared ExperiencesForum for Corporate Sustainability Management (CSM): Following a long tradition of fruitful collaboration with one
of the worlds’ leading business schools, the Institute for
Management Development (IMD) in Lausanne, Switzerland,
Bombardier Transportation is currently a member of IMD’s
Forum for CSM, which is headed by Prof. Dr. Ulrich Steger.
The forum focuses on three key issues of sustainability
management: managing stakeholder dialogue, driving
sustainability through leadership and linking it to business
performance. Corporations participate in the Forum to
build a sustainable business advantage through social
and environmental strategic action.
As a participant, we benefit from IMD’s faculty and staff
expertise when conducting hands-on pilot projects, and
we learn from other companies that participate in CSM
through benchmarking. We also share ideas with organi-
zations outside our traditional business area and are able
to participate in a range of learning forums.
Some of the CSM’s current research topics include
multi-stakeholder dialogues and public private partner-
ships (PPP), sustainability challenges and dilemmas for
companies, managing product responsibility as well as
human rights issues. Bombardier’s participation in the
CSM’s Health & Safety and Environment groups has
proven to be an ideal forum for exchange of best practice
and benchmarking with other companies.
Conference Board: The North America-based Confer-
ence Board creates and disseminates knowledge about
management and the marketplace to help businesses
strengthen their performance and better serve society.
Working as a global, independent membership organiza-
tion in the public interest, it conducts research, convenes
conferences, develops forecasts, assesses trends,
publishes information and analysis, and brings executives
together to learn from one another.
The Conference Board operates via a number of councils.
We participate in the European Council on Environment
and Product Stewardship, created in 1991, in response
to public, government and corporate concern about the
environment and sustainability as well as product stew-
ardship issues. Bombardier Transportation is especially
involved with issues such as eco-design and product
declarations, environmental reporting, and sustainability.
We also attend the European Council on Health and
Safety which gives European safety managers the oppor-
tunity to exchange ideas on increasing the effectiveness
of their health and safety programs, and on promoting
the active participation and commitment of employees.
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Institute for Management Development (IMD) www.imd.ch/csm
Conference Board www.conference-board.org
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Standardization European legislation in the environmental field is increas-
ingly based on standards. Bombardier Transportation’s
HSE staff contribute to several standardization initiatives
such as the current development of the ISO 14005 stan-
dard, the revision of ISO Guide 64 or work in CENELEC’s
TC 111X on environmental standardization.
Industry Associations / Environmental Initiatives Union of the European Railway Industries (UNIFE):
The industry association represents the majority of rail
vehicle, systems and components manufacturers on a
European level. Its working group, Environment &
Transport, which is led by Bombardier Transportation,
advises on European legislation and acts as a forum for
exchanging knowledge and cooperation with customers’
environmental experts via close links to the operators’
organization International Union of Railways (UIC).
Bombardier Transportation President André Navarri has
been the Chairman of UNIFE since 2005.
Union of Public Transport (UITP): The UITP is an
association devoted to mass transport, with membership
including operators and manufacturers. In 2003, UITP
members approved a Sustainability Charter (see page
13). Bombardier Transportation was the first rail vehicle
manufacturer to subscribe to the charter in 2003.
International Network for Environmental Management (INEM): INEM is a non-profit federation for environmental
management and sustainable development that aims
to help companies improve their environmental and
economic performance. In Germany, INEM is represented
by B.A.U.M., the German Environmental Management
Organization. Its members subscribe to the B.A.U.M.
ethical code of practice. In 2000, the head of our HSE
department received the B.A.U.M. award which is given
to managers contributing to future-oriented environmental
protection.
Allianz pro Schiene: The association Allianz pro Schiene
(Alliance for Rail) promotes environmental protection by
educating the public on the environmentally sound nature
of railway transport. With its efforts focusing on Germany,
the group aims to increase the share of railway networks
in the traffic system.
Allianz pro Schiene also encourages the exchange of
information on railway traffic issues and technological
development for rail systems on a national and interna-
tional level. Peter Witt, Chairman of the Supervisory
Board of Bombardier Transportation, Germany, entities,
is a member of the board of Allianz pro Schiene. Similar
initiatives with Bombardier Transportation participation
exist in several other countries.
CENELEC www.cenelec.org
UNIFE www.unife.org
UITP www.uitp.com
INEM www.inem.org
B.A.U.M. www.baumev.de/baumev/portrait/Englisch/d_Code_of_Practise.pdf
Allianz pro Schiene www.allianz-pro-schiene.de
New Standards for the future – Bombardier ZEFIRO high-speed train (artistic rendering)
�0
s a manufacturer of rail vehicles, Bombardier is in the
fortunate position of enjoying the goodwill of many
stakeholders. Of course that does not release them
from the responsibility of leading by example, both exter-
nally and internally, in the sphere of environmental protec-
tion. Beyond the mere manufacturing process, what can
the company do in the realm of new technologies and
innovative concepts to overcome the public preference
for cars and trucks over rail?
Just to be clear: waiting for miracles or taking business
risks are not on the agenda. What is on Bombardier’s
agenda, however, is a strong commitment that ranges
from the fight against noise pollution to creating innovative
transportation concepts that include proactive preparation
for future developments.
While common sense would dictate that rail traffic is the
way to go, the opposite is currently true. Railways have a
distinct disadvantage in an increasingly individualized
society: The transportation of people and freight by rail is
marked by circuitous routes and interruptions, while cars
and trucks can travel directly from one destination to the
next. That’s another reason why it is necessary to develop
new technologies and traffic concepts.
Sustainability alone is no guarantee for success. Particu-
lar issues of sustainability can only be implemented in the
long-term, and very often they are controversial. Everyone
knows that climate change is on its way, but no one can
gauge its impact in terms of when it will strike, who will be
affected, and what the overall effects will be. In this very
context, another factor, however, is a fixture: The pressure
on achieving short-term financial success is constantly
mounting. In many cases these pressing matters are
addressed while the important issues are neglected. A
successful management is characterized by the ability to
strike a balance between short- and long-term planning.
A company’s core values are an important prerequisite to
be able to pursue a profit-oriented but also sustainable
economic policy.
As a family-owned business, Bombardier displays a num-
ber of good starting points, not only when it comes to its
business responsibility but also its drive to demonstrate
sustainable development. Equally important is the ability
not only to recognize future trends at an early stage but
also to make strategic use of them. That, in turn, requires
an open mind for new developments and diversification.
Finally, but perhaps most crucially for sound manage-
ment, is the ability to find committed employees who
know they can rely on proven structures and processes in
order to do their jobs effectively.
Prof. Dr. Ulrich Steger
Prof. Dr. Ulrich Steger, International Institute for Management Development (IMD), Lausanne, Switzerland
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Sustainability Alone is No Guarantee for Success
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Product Responsibility and Customer Orientation
The ecological benefits of rail transport are consider-
able. Since energy is transferred most efficiently
between a steel wheel and the steel track, energy
consumption of rail vehicles, and therefore the related
emissions, are much lower than other forms of
motorized land transportation.
��
he average eco-efficiency of modern intercity trains
is comparatively much higher than for other types of
motorized freight or passenger transport, in terms
of energy consumption and pollution output. In addition,
land use by private cars and buses is significantly higher
than compared to rail, e. g. trams and metros.
A few numbers will help to illustrate the point. While a
metro can transport 50,000 passengers per hour (pph)
using a 3 – 5 m wide strip of land, only 9,000 pph can
be transported by buses, but even much less (2,000/h)
by private cars (see UITP, “Ticket to the future” and
diagram on page 25). Assuming the same transport need,
it means that 25 lanes, each 3 m wide, would be required
when cars are used instead of a metro system. Interest-
ingly, use of bicycles would increase capacity to 14,000
passengers/h. This demonstrates the dilemma countries
like China and India are facing by increased car traffic.
Even though rail transportation comes out on top in all
the relevant measures of environmental protection when
directly compared to other modes of transportation, there
is still more work ahead. We must continue to improve
our ecological standards. Working actively to protect the
environment is not only a commitment towards society; it
should also create competitive advantage for our custom-
ers, the rail operators.
T
UITP, “Ticket to the future” www.uitp.com/project/pics/susdev/brochureUK.pdf
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Bombardier Regina electric multiple unit, Sweden
Environmental Improvement of our ProductsInternally, we have now been measuring and reporting
improvements of environmentally relevant processes
at our facilities for over five years. Although this has
allowed us to follow up with specific action plans, we
are convinced that environmental improvements on the
product side are far more relevant, and that there is still
room to grow.
In order to provide a better framework for this goal, we
introduced two performance indicators in 2006. They
measure issuing of Environmental Product Declara-
tions – at least one per new product platform – and
whether energy efficiency or other environmental items
are included in product roadmaps which describe the
technical evolution of vehicle platforms, over time.
All industrial activities – whether
manufacturing processes, product
use or service provision – have an
impact on the natural environment.
In qualifying and quantifying this
impact, two concepts are particu-
larly important. The term “environ-
mental aspect” is used to describe
processes or items that influence
or disrupt the environment, such
as energy consumption, waste
generation and emissions of
gaseous and liquid substances.
“Environmental impact” refers to
the change (positive or negative)
resulting from a particular activity,
such as the deterioration of the
ozone layer or the greenhouse
effect.
The two terms are connected in
the sense that environmental
aspects can generally be related to
specific environmental impacts,
although this depends on the
evaluation model used. Thus, the
primary goal of our environmental
management system is to minimize
the negative environmental impact
of our activities by means of a
process of continuous improve-
ment. This goal applies equally to
the Group’s finished products –
both during their use phase and
following decommissioning – and
to the manufacturing processes
employed, regardless of whether
this happens at Bombardier
Transportation itself or on the
suppliers’ premises.
Environmental Aspects and Associated Impacts
��
Energy Consumption
Reducing energy consumption has become increasingly
relevant to our work with our customers, not only because
of its environmental impact but also for its effect on cost
and availability. Energy costs, calculated over an extended
period, can often equal the usual maintenance costs or
the capital investment for new vehicles. Minimizing energy
consumption has traditionally been done by aiming for
lower weight, decreasing aerodynamic drag, recovering
brake energy and reducing losses for all propulsion com-
ponents. In addition, power meters can be installed in the
vehicle to control the energy consumption.
Predicting PerformanceOne problem regarding energy consumption in rail
vehicles is that it is not possible to produce prototypes for
extensive testing. This means that typically energy con-
sumption is calculated and not actually measured until we
are in the final production stage. To better estimate energy
consumption, we have invested in the development and
improvement of advanced software tools. These allow us
to calculate the energy consumption of our vehicles with
a high degree of accuracy. However, only real-life test-
ing can show whether our measures are applicable and
successful.
Testing on the GroundA recent project in Scandinavia, which was conducted
with involvement of our Design for Environment Compe-
tence Center, measured the actual energy consumption
of several modern trains, including our Regina trains in
Sweden and the Öresundstoget that links Denmark and
Sweden (KTH Stockholm, Andersson & Lukaszewicz,
2006), against benchmark data for a study of locomotive-
hauled trains conducted in 1994. The energy consump-
tion for propulsion and for comfort functions such as
Heating, Ventilation and Air Conditioning (HVAC) and
also for idling were measured, as was the energy lost in
railway operation.
In general, these studies showed that for comparable
operations, energy consumption on the newer trains had
been reduced by 25 to 30 % per passenger kilometer.
Several new and innovative design factors influenced
these results:
> Improved aerodynamics (energy consumption reduced by more than 20 %)
> Regenerative braking (energy consumption reduced by nearly 20 %)
> Improved efficiency in the propulsion system (energy consumption reduced by 5 to 10 %)
> Increased capacity/length due to wider car body (energy consumption reduced by about 25 %)
Without all these measures, energy consumption, due to
higher speeds and more comfort functions, would have
increased by 60 %. The key challenge in product develop-
ment is to balance passengers’ demands for high speed
and climate-controlled comfort with the operators’ need for
energy-efficient solutions, while remaining competitive and
improving environmental performance.
Transport Efficiency in Urban Environment *
50,000
37,500
25,000
12,500
02,000
Car
9,000
Bus
22,000
Tram
50,000
Metro
* Number of people crossing a 3 – 5 m wide space in an urban environment during a 1 hour period
Source: UITP, “Ticket to the future”, www.uitp/com/project/pics/susdev/brochureUK.pdf
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Design for Environment (DfE)Given our vehicles’ long life – as much as 40 years –
Bombardier Transportation places great emphasis on
creating environmentally compatible products. Our focus
is certainly on comfort and design but simultaneously on
meeting or exceeding specific environmental demands
during product development. Current laws require that
companies achieve higher energy efficiency, lower noise
emission levels and use risk-free materials.
Counting on DfEBombardier Transportation goes above and beyond
government regulations. As a company devoted to con-
tinuous improvement of environmental performance, we
have been committed to improving our products through
Design for Environment (DfE) for the past 15 years.
The primary goal of DfE is to develop vehicles that
contribute to a sustainable mobility, such as those that
reduce energy consumption and noise emissions. What is
the key to achieving this goal? The environmental impact
that the product will have throughout its whole life cycle is
factored in at the development phase.
DfE was first introduced in our engineering branches in
Scandinavia and Germany and has now spread through-
out the organization. Since then, we have done much to
reduce energy consumption during the product’s use.
We aim to use DfE to help us produce environmentally
compatible vehicles and to anticipate any future, more
stringent legislation in this regard.
Rail Vehicle RecyclingRecycling is one of Bombardier Transportation’s highest
priorities. The company strives to make products even
more reusable, and it achieves this goal by using recy-
clable materials as much as possible, avoiding the blend-
ing of materials and marking polymers and batteries.
DfE GuidelinesIn order to help our engineers accomplish the task of
designing eco-friendly products during the design
process, several tools exist. Some are publicly avail-
able, like the leaflet called Design for Environment (DfE)
Guidelines. This document contains some “quick and
easy” principles on how to obtain more sustainable prod-
ucts and services.
In essence, the principles address 11 design challenges
such as energy efficiency, lifetime expectancy and the
reduction of material diversity. Each designer is called
upon to set up his or her own “DfE action plan” based
on the guidelines. Through our Electronic Book of
Knowledge, more detailed documents are available for
all design engineers and staff in supply management.
Commuter train for the Ile-de-France region
Design for Environment (DfE) Guidelineswww.transport.bombardier. com > About us > Sustainable Mobility
��
Directive on Prohibited and Restricted Substances In 2002, we implemented the first Bombardier
Transportation Directive on Prohibited and Restricted
Substances. The directive implements the Prohibited and
Restricted substances list which defines substances that
are either forbidden for use or that should not be used
according to voluntary restrictions in all new designs/re-
designs.
The first revision of the Bombardier Transportation Pro-
hibited and Restricted substances list was made in the
fall of 2004 and came into effect on June 1, 2005, for all
new designs and design changes. This revision takes into
account changes in legislation and risk assessments as
well as customer requirements over the past two years.
Initiated in 2004, the project “Competitive Rail Argu-
ments for Sustainable Mobility” is an important study
involving the use of environmentally friendly products.
The aim of the project is to promote the railway sector
by applying environmental issues and arguments.
The study demonstrates the competitive environ-
mental advantage of rail products compared to other
modes of transport, and shows how Bombardier
Transportation contributes to Sustainable Mobility.
This knowledge is helpful for communicating the
superior environmental performance of Bombardier
Transportation products to new customers during the
tender process. Other objectives are to communicate
the environmental improvements that have been made
over the last decades of rail travel and to monitor the
commitments made with regard to HSE Policy and the
UITP Charter.
Project for Sustainable Mobility
Bombardier Transportation Environmental DatabaseEquipped with a web-based interface, CEMat is a central
database for gathering, storing and tracking the environ-
mental performance and passive fire safety requirements
of Bombardier Transportation products. The system is
an integral part of the Bombardier Transportation Data
Acquisition System (B-DAS), which is the company stan-
dard for applications with external accessibility.
The Bombardier Transportation Environmental Database
involves suppliers directly and thus reduces the time
needed for tasks such as creating a material inventory.
The system was launched in 2006 and not only enables
us to reuse existing data but also to share data between
Items Covered by Bombardier Transportation DfE Guidelines
- Metals - Polymers- Natural/Organic materials- Composites- Glass and Ceramics- Insulation- Adhesives- Oils and other liquids- Corrosion preventing agents- Surface treatment- Cleaning agents- Cooling media and Fire extinguishers- Electrical and Electronical equipment
Components and
Materials
DesignFunction/Need Production Use End of
life
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the business divisions. In addition, it transparently and
efficiently stores fire certificates linked to the components
in a product’s structure.
Design for Environment Training Since the DfE Training Module was launched, several
hundred engineers and supply managers have been
trained. We expect the training to become an increasingly
important pillar of our environmental strategy and
are working to broaden its application at all our sites.
Communicating Excellence: Environmental Product Declarations Most people are aware that traveling by rail has environ-
mental benefits, and it is important for Bombardier and
the entire rail industry to uphold this perception. We use
Environmental Product Declarations (EDP) to provide cus-
tomers, operators and other stakeholders with relevant,
reliable and objective environmental information.
These declarations deliver concise information about the
manufacturer’s environmental management system and
also describe the environmental aspects of the product’s
lifecycle (production, use – with special focus on energy
consumption – and end-of-life). An environmental profile for
each respective product is then put together based on that
information. In order to set up such a product declaration,
our staff performs a lifecycle assessment (LCA) that includes
manufacturing, operating (including maintenance) and end-
of-life treatment. It is based primarily on a thorough material
inventory and a calculation of energy consumption.
The structure and content of the product declarations are
based on international standards. We have expanded the
Bombardier TALENT 2 electric multiple unit
��
application of standards from ISO 14021 (self-declared
environmental claims), to now include the new standard ISO
14025:2006 in certain projects. We apply this new interna-
tional norm not only because it is the most advanced and
demanding one in this field but also because it allows us
to have our products’ environmental performance verified
externally according to an acknowledged scheme.
We believe that such external verification is required as soon
as the product is of relevance for the general public (like rail
vehicles). For systems/components that are delivered to
other businesses (B2B), ISO 14021 may be sufficient. How-
ever, even in these cases, ISO 14025 may be preferred as it
has the advantage to allow for compiling an EPD from infor-
mation modules which reflect a modular product structure.
This enables us to use input data from suppliers provided in
a standard, and even validated, format.
Generally, EPDs are developed with support from our
Design for Environment Center of Competence.
Whenever feasible, they are verified according to the
European EMAS regulation. Details on the corresponding
Program and product category rules according to ISO
14025 can be found on the Internet. With regard to EPD’s
we believe we are ahead of the curve. We introduced the
concept of EPDs to the rail sector in 1999. The first EPDs
fulfilling the requirements of the ISO 14025:2006 standard
were distributed at the Innotrans trade fair in Berlin in
September 2006.
Environmental Fact SheetsAn Environmental Fact Sheet (EFS) allows us to evaluate
the environmental performance of a customer-specific
version of a vehicle and/or component. It is especially
suited for reporting environmental performance informa-
tion in the early design stages.
Such an EFS typically deals with customized adaptations,
material changes and improvements. The first EFS was
introduced by Bombardier Transportation in September
2004. It was produced for the Locomotive Class Re 484
(Swiss Cargo) and is based on the EPD for the Locomo-
tive Class 185.1. While relevant ISO standards provided
guidance of the contents, the EFS was also validated
through EMAS.
EMAS logo poster on Bombardier TRAXX P160 DE, Germany
Program and product category ruleswww.transport.bombardier.com > About us > Sustainable Mobility
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Bombardier Transportation has worked on numerous
projects to make our products even more environmentally
compatible and to improve our transportation systems’
sustainability. We do this either hand-in-hand with our
customers and suppliers or, in the case of a consortium,
with our partners.
Electrical Multiple Units for ChinaBombardier is set to deliver 20 sets of eight-car Electrical
Multiple Units (EMU) to China. The vehicles are being
produced at our facility Bombardier Sifang Power in
Qingdao, which is a joint venture between Bombardier,
the Chinese company Sifang and Power Corporation
of Canada. The project started at the end of 2004.
The first EMU were delivered in 2006. The Chinese
Ministry of Rail has ordered a train built according to
European standards. So the environmental issues
should be considered in accordance with European
standards. All suppliers are requested to comply with
the Bombardier Transportation List of Prohibited &
Restricted Substances. They are also required to mark
all polymers and batteries.
London UndergroundIn the Victoria Line Upgrade (VLU) project (part of the
London Underground system), Bombardier Transportation
is asking all suppliers to comply with its list of
Prohibited & Restricted Substances and the marking of
polymers. They can declare their conformity by filling out
Bombardier Transportation’s “Supplier Declaration Form”.
Although due to the relatively low quantities used there
is no direct hazard from Chrome VI applied for plating
of screws, nuts, and washers, there is a phase-out
program similar to the automotive industry (which is
subject to legal obligations in this respect). As an exam-
ple, in our product PURD EMU Western Australia that
was delivered to the customer in September 2004, the
customer specified that chromates were not allowed
in the vehicles. The stainless steel vehicles, in total 31,
were manufactured by Joint Venture of Bombardier
Transportation Australia in Brisbane, Australia and EDI
Rail in Granville, New South Wales, Australia. The pro-
pulsion equipment was designed and manufactured
in Västerås, Sweden. It is estimated that Bombardier
Transportation had managed to reduce the total
amount of chromated surfaces by more than 95 %.
Chromates can still be found mainly in external stan-
dard components where no alternatives are available.
Actions Taken to Minimize the Use of Chromates
Design for Environment Project Examples
Electric multiple unit for Perth, Australia
30
Another part of the London Underground contract is the
Sub Surface Line (SSL). Here, the same base requirements
have been defined as in the VLU project. In addition, a full
material inventory will be carried out using a Bombardier
Transportation material inventory tool. The customer has
also requested an environmental report (i.e., a kind of EPD).
New OperaIn Europe, the railway system plays an increasingly
important role. Because of this, the European Transport
Policy’s goal is to encourage long-term sustainable
mobility and to promote a competitive environment. In order
to achieve this, a modal shift towards rail is necessary, in
particular reversing the negative trend of the rail freight’s
market share. New Opera is a research project funded
completely by the European Commission on a new
European rail infrastructure dedicated to freight. A three
and a half-year program, New Opera began in January
2005 and provides an excellent opportunity for study-
ing long-term and cross-border cargo mobility as well
as for developing scenarios for the next five to 15 years.
Bombardier Transportation’s role in the project is to share
its DfE expertise with the goal of identifying and evaluating
environmental criteria for assessing the sustainable New
Opera freight system.
PROSPER and REPIDThe PROSPER and REPID “twin” projects are the result
of a unique cooperation between railway operators and
manufacturers to improve environmental performance
of new rolling stock. In order to do this, project partners
developed common guidelines, specifications, indica-
tors, tools and data formats. Bombardier Transportation
participated in both PROSPER and REPID.
The UIC-(International Union of Railways) funded project
PROSPER ( Procedures for Rolling Stock Procurement
with Environmental Requirements) intended to improve
the environmental performance of rail transport by provid-
ing process support for all relevant steps when procur-
ing rolling stock. The results of the project have recently
been compiled as an environmental guideline for railways,
including a set of harmonized environmental specifica-
tions, in the UIC leaflet 345 “Environmental Specifications
for new Rolling Stock”.
In order to implement these environmental specifications
efficiently, railways and manufacturers need a common
environmental methodology. Based on the methodology
defined in a predecessor project under Bombardier’s lead,
which included environmental performance indicators, the
REPID (Rail sector framework and tools for standardizing
and improving usability of Environment Performance Indi-
cators and Data formats) project developed a software
tool for handling DfE. It also came up with a web-based
solution for environmental communication between the
different railway stakeholders. This has formed the basis
for the Bombardier CEMat tool.
PROSPER and REPID: Future of Eco-Procurement in the Rail Sector
Environmental
and
technical expert
information
Environmental
performance
of new rolling
stock
PROSPEREnvironmental Procurement Guideline
NETWORKMembers Board Website
REPIDMethodology Indicators IT-Tool
New Opera www.newopera.com
Procedures for Rolling Stock Procurement with Environmental Requirements www.railway-procurement.org
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In Focus:Climate Change
Climate change is one of the most critical challenges of our times. With its
potential impact on our health, economy and ecology, global warming is a major
risk. Some of the consequences are already visible; for example, an increase
in extreme weather patterns, and the rise in the average temperature. Scientists
have warned that greenhouse gases are one of the main culprits, notably CO2,
whose emissions result from burning fossil fuels such as coal, oil and gas.
he need to protect the climate provides Bombardier
Transportation with important incentives for product
planning. However, low emissions are equally impor-
tant to the whole of Bombardier Inc. on an operational
level. On Feb. 16, 2005, just after our parent company’s
fiscal year ended, the Kyoto Protocol on climate change
came into effect, providing added impetus for the corpo-
ration to recommit to reducing its environmental footprint.
With total yearly emissions in the 400 – 500 kiloton range,
Bombardier’s global manufacturing network produces
a relatively minor amount of greenhouse gas emissions
(mainly CO2).
However, in keeping with its sustainability agenda, the
corporation is devoted to reducing emissions even further.
Over a five-year period, Bombardier Inc. has set an annual
corporate-wide energy-reduction objective of 3 % to
reduce its greenhouse gas emissions accordingly.
Coinciding with the United Nations Climate Change
Conference 2005 in Montreal, a number of prominent
Canadian business leaders called for a raft of measures
regarding climate change and global energy policies.
One of the co-signatories of the appeal was Laurent
Beaudoin, Bombardier’s Chairman of the Board and
Chief Executive Officer.
In 2006, Bombardier Inc. joined the Carbon Disclosure
Project and disclosed all data relating to low-level emis-
sions and its strategies on climate protection. The project
– backed by several high-profile institutional investors –
aims to recognize at an early stage all climate-relevant
opportunities and risks for companies.
TBiLevel commuter train operated by GO Transit in Toronto, Canada
3�
Mobility and Climate ChangeTraffic and travel are one of the main reasons why CO2
emissions continue to increase. An estimated 18 % of the
global anthropogenic CO2 emissions are a direct result
of transporting people and goods. In certain countries,
e.g. Germany, that figure is closer to 30 %. Road traffic
is responsible for two-thirds of that volume, proving yet
again that it is the least energy efficient mode of transpor-
tation.
In contrast, rail travel is extremely climate-friendly. The
CO2 emissions resulting from long-distance train journeys
are nearly two-thirds lower than travel by car. If the freight
traffic of each has the same volume and performance, the
railway produces a mere one-fifth of the CO2 emissions
generated by a truck.
Bombardier Transportation’s Products and CO2 Reduction In order to maximize the inherent environmental advan-
tages rail enjoys in terms of relieving traffic congestion,
reducing energy consumption and producing fewer emis-
sions, Bombardier Transportation is working successfully
on innovative public transport solutions.
For example, in order to allow for more efficient use of
braking energy on our light-rail vehicles, we developed
the Bombardier* Mitrac* Energy Saver Solution. This
innovative technology can help reduce the energy con-
sumption of a light-rail system by up to 30 %.
Furthermore, Bombardier Transportation is a leading
contributor to the “Rail Energy Project” in the fields of
energy components and energy operation as part of the
6th EU Research Framework Program. The project aims to
develop energy saving hardware and control systems, as
well as to define standardized driving cycles. It’s esti-
mated that the results will lead to an overall six-percent
reduction in energy consumption.
That said, our research efforts to develop climate-friendly
transportation systems are not exclusively rooted in ethi-
cal responsibilities, though those are certainly a priority.
They also represent significant business opportunities
for Bombardier Transportation. Given that passenger
rail transportation – in particular mass transit – is rightly
regarded as a solution to reduce greenhouse gas emis-
sions, Bombardier’s leadership position in this sector will
serve all its stakeholders well.
Bombardier Transportation and EU CO2 Emission Trading The transport sector is exempt from EU emission
trading. However, in many countries of Europe the
inclusion of power generation in the trading scheme has
a direct impact on some of our customers. Together,
by working with our customers, through new product
development “designed for environment” as described
throughout this report, and through industry initiatives
we are addressing the issues presented by the need to
reduce CO2 emissions.
Carbon Disclosure Project www.cd-project.net
33
In F
ocus
: Clim
ate
Chan
ge
The Environmental Impact of Production
Production has long been an important lever in helping to protect
the environment. A reduction in our use of resources offers plenty
of opportunities to lower costs. Here at Bombardier Transportation,
we have yet to fully exploit that potential. That is why we have
defined clear reduction targets for all our sites worldwide over the
coming years.
3�
Energy Consumption
In general, Bombardier Transportation has continuously
reduced the overall energy consumption at all of the plants
reported here for a number of years. However, due to
changes in the number of sites we have as a result of the
acquisition of Daimler Chrysler Rail Systems in 2001 and
new developments in process and plant loading, energy
consumption has risen between 2003 and 2004, whereas
from 2002 to 2005, a decrease of 1 % annually as com-
pared to a target of 3 % was observed.
Special Measures at Select SitesBombardier Transportation invited the British government-
funded group Action Energy to our site in Derby, UK, to
help identify potential savings associated with energy
use. The resulting report highlighted examples for reduc-
ing energy consumption; for example, determining the
amount of leakage from compressors.
To cite other measures, an information session was held
in Bruges, Belgium, explaining good practices to our
employees. The internal objective is to reduce energy
costs by 10 %. In Randers, Denmark, 212 smaller low-
heat insulating windowpanes were replaced by high-
insulating ones. We installed automatic light switches in
changing rooms and bathrooms in several buildings and
equipped the light in some buildings with a timer so they
turn off automatically. We also replaced an insulated brick
wall with a heat-insulating gate in one of the buildings.
A workshop building in Trapaga, Spain, received a new
heating system with radiant panels on the roof, thus
replacing the former water-run central heating. That
generated savings in natural-gas consumption of almost
50 %. We also saved energy by replacing the old roof
with a new one with better insulation.
Energy Consumption per 200,000 Hours*
in Gigajoules
12,800
9,600
6,400
3,200
0
11,841
2002
11,036
2003
11,858
2004
11,437
2005 2006target
Energy Consumption in Absolute Figures*
in Gigajoules
3,600,000
2,700,000
1,800,000
900,000
0
2,335,393
20052004
2,907,777
2003
2,827,566
2002
3,100,054
* Reporting years from February 1 to January 31 ** Referenced to 200,000 work hours
OUR TARGET
Reducing specific energy consumption/greenhouse gas emissions** by 3 % annually.
35
The
Envi
ronm
enta
l Im
pact
of P
rodu
ctio
n
And also at our Hennigsdorf site, Germany, we managed
to reduce heat consumption by improving insulation of the
roofs.
Water Consumption
The water consumption at our sites is not especially high,
and it is usually limited to our sanitary facilities. Of course,
more water is used at sites where we have paint shops
and, more obviously, vehicle cleaning operations, but
consumption is also higher in areas where water tightness
tests of vehicles are carried out without reclaiming
water. All of the above also place great demands on
reprocessing and the purification of effluents. The
ecological impact of water consumption also depends
greatly on regional particularities. The majority of our
sites are in regions that typically have medium to high
precipitation. Nevertheless, we make sure that we use
water frugally − and our statistics certainly back that up.
The potential to save water is best highlighted at our site
in Crespin, France, where we have managed to lower
water consumption by 50 % since 2002. In total, we
achieved from 2002 to 2005 a reduction of specific water
consumption by 6 % annually, instead of a planned 3 %.
Use of ResourcesThe different materials specified in the design phase need
to be considered, including those contained in supplied
parts and components. Typical materials found in a rail
vehicle include steel, aluminum, copper, various plastics,
insulation materials, paints, adhesives, sealants, wood
and fabrics. The composition of the different materials
is as follows: metal (about 80 %), plastics (about 5 %),
wood (about 5 %) and glass (2 %). Our vehicles also
contain about 1 % of chemicals and around 0,5 % of
electronic parts.
For example, our production of locomotives in 2005
with an average weight of 84 tons required the following
resources per vehicle: 72 tons of steel, 13 tons of other
metals and 3.5 tons of plastics (see EPD TRAXX* F 140
MS, e.g.). Typical annual production output of the Kassel
assembly site is in the range of 100 vehicles. Luckily, the
Water Consumption per 200,000 Hours*
As of: January 31, 2006
5,000
3,750
2,500
1,250
0
4,629
2002
4,126
2003
4,024
2004
3,764
2005 2006target
Water Consumption in Absolute Figures*
As of: January 31, 2006
1,400,000
1,050,000
700,000
350,000
0
768,590
20052004
986,665
2003
1,057,186
2002
1,212,011
OUR TARGET
Reducing specific water consumption** by 3 % annually.
Greenhouse Gas Emissions per 200,000 Hours*
As of: January 31, 2006
1,000
750
500
250
0
867
2002
922
2003
985
2004
919
2005 2006target
Greenhouse Gas Emissions in Absolute Figures*
As of: January 31, 2006
260,000
195,000
130,000
65,000
0
187,631
20052004
241,636
2003
236,153
2002
226,989
* Reporting years from February 1 to January 31 ** Referenced to 200,000 work hours
3�
high use of natural resources is compensated by the
ability to recycle around 95 % of the materials used.
Hence, when it comes to environmental issues and natu-
ral resources, our focus is not so much on reducing their
use, but on limiting the amount of environmentally risky
substances (see List of Restricted Substances), such
as heavy metals, solvents, and other critical substances.
Hazardous and Critical Materials
Sometimes hazardous or critical materials have to be
used because various key technical requirements must
be met. However, according to our list of restricted
substances, engineering must report the use of these
materials and the reason for using them. While we must
follow legal obligations and customer requirements,
Bombardier Transportation policy is to also carefully
manage the use of those hazardous substances that
are not subject to such restrictions. The reduction of
hazardous waste quantities over time reflects this policy,
at least when excluding the service operations and the
waste generated through them. The fact that for new
build activities, a decrease only took place from 2004 to
2005 (18 %) is attributed to changes in categorization of
hazardous waste, as well as activities in conjunction with
site closures.
Waste Generation
Avoiding or reducing waste clearly is one of the crucial
areas for production improvement. It not only results in
a reduction of environmental loads, it also helps us to
significantly reduce our costs. Any material that must
not be disposed of as waste must not be purchased
Hazardous Waste per 200,000 Hours*
in metric tonnes
32
24
16
8
0
27
2002
18
2003
22
2004
21
2005 2006target
Hazardous Waste in Absolute Figures*
in metric tonnes
8,000
6,000
4,000
2,000
0
4,335
20052004
5,330
2003
4,620
2002
7,115
Waste per 200,000 Hours*
in metric tonnes
100
75
50
25
0
64
2002
65
2003
80
2004
83
2005 2006target
Waste in Absolute Figures*
in metric tonnes
20,000
15,000
10,000
5,000
0
16,902
20052004
19,550
2003
16,760
2002
16,712
* Reporting years from February 1 to January 31 ** Referenced to 200,000 work hours
Environmental Production Declaration (EPD), TRAXX F 140 MS www.transport.bombardier.com > About us > Sustainable Mobility
List of Restricted Substances www.transport.bombardier.com > About us > Sustainable Mobility
OUR TARGET
Reducing specific general waste** by 3 % annually.OUR TARGET
Reducing specific hazardous waste** by 5 % annually.
37
The
Envi
ronm
enta
l Im
pact
of P
rodu
ctio
n
organic compounds contribute to the greenhouse effect
and aid the formation of ground-level ozone.
Replacing solvent-based paints with water-based alter-
natives has been part of Bombardier Transportation’s
continuous improvement strategy for several years.
However, some clients specifically request solvent-based
paints, due to perceived advantages regarding corrosion
resistance and surface finish. The switch from solvent-
based to water-based paints and glues is one example of
how environmental improvements are linked to changes
in the production processes or customer requirements.
Therefore, it is not only Engineering and Design that has a
bearing on customer wishes; our sales force can also play
an active role in overcoming “historic” customer specifica-
tions and requirements, instead providing new, environ-
mentally-sound alternatives.
In addition to the data presented above, our environ-
mental reporting system covers any significant spills.
None were recorded during the reporting period. Fines
and sanctions for non-compliance with environmental
laws/regulations are followed by the reporting system as
well. During the reporting period (2005/6), their amount
was less than US$ 15,000.
and handled beforehand. Similar to what was said
regarding hazardous waste, the increase in specific
amounts at certain points in time can also be related
primarily to site closures in the case of general waste. It
is also obvious from comparing figures without service
activities that these contribute over-proportionally
to waste generation due to cleaning of vehicles and
scrapping of components prior to vehicle refurbishment.
Materials sent for recycling increased from twice the
amount of disposed materials to three times, again
primarily related to site closure and restructuring activi-
ties. From 2004 to 2005, however, their specific amount
decreased by 21 %.
Emissions to the AtmosphereThis topic focuses on emissions resulting from direct
and indirect energy consumption. At Bombardier
Transportation, we are in the process of reducing our own
heating energy and instead opting for district heating.
Generally, this leads to a reduction in CO2, sulphur dioxide
(SO2) and nitric oxide (NOX) emissions.
Furthermore, we are also committed to a reduction in vol-
atile organic compounds (VOC) from agents used in clean-
ing and degreasing or as solvents in paints and adhesives.
These also pose a threat to the respiratory health of our
employees. When emitted into the atmosphere, volatile
Recycled Material per 200,000 Hours*
in metric tonnes
240
180
120
60
02002
91
2003
233
2004
165
2005 2006target
Recycled Material in Absolute Figures*
in metric tonnes
60,000
45,000
30,000
15,000
0
33,601
20052004
57,198
2003
23,220
2002
* Reporting years from February 1 to January 31
3�
Wroclaw Locomotives plant,
Poland: Here we managed to
reduce the EP (epoxy-resin)
solvents in the preparative paint
process for BR 185 locomotives by
using novel painting methods
(warm painting). The total quantity
of solvents used for the top coat
has been reduced by 5 liters per
carbody.
For BR 185.2, Bombardier
Transportation pool, a reduction of
paint materials containing isocya-
nate was possible by exchanging
PUR (polyurethane) sealant for
MS (modified silicones) sealant,
resulting in the total elimination of
isocyanate emissions.
For the E 405 locomotive (Trenitalia,
Italy), we also managed to reduce
the quantity of paint materials
per carbody. We achieved this by
reducing anti-slip epoxy and anti-
slip hardener from 12 kilograms to
8 kilograms per unit, respectively.
At the Crespin bogies facility,
France, we selected a water-based
paint for some customers. Follow-
ing approval of this painting pro-
cess with lower VOC emission by
French customers, it has also been
approved by other customers.
Our mainline plant in Crespin
defined a new painting process
with lower VOC emission and
foresees a 15-percent reduction of
VOC emissions.
The Görlitz site, Germany
modernized the painting installa-
tions and is now able to use water-
based paints as well. For example,
we used water-based paint on
Israel-bound double-decker cars
produced at the site. As a result,
we managed to reduce solvent
emissions and also complied with
the limits set by the German
Solvent Directive.
Several measures to reduce VOC
emissions were implemented at
the Bautzen site, Germany. The
increase in use of water-based
paint reduces consumption and
emission of solvents; electrostatic
painting at the small parts paint
shop reduces overspray losses,
while using glues with less solvent
content reduces hazardous sub-
stances at the workstations.
At the Siegen bogies site, Ger-
many, more than 60 % of the
painting is done with water-based
paints.
In Plattsburgh, U.S., – and at
other sites where a total switch to
water-based paints is not feasible
– we installed a solvent distiller
to reuse solvents from painting
operations. That cut the amount
of virgin materials and ultimately
reduced the amount of hazardous
waste generated by the process.
Examples for Reducing Emissions to the Atmosphere
39
The
Envi
ronm
enta
l Im
pact
of P
rodu
ctio
n
Responsibility for Our Employees
The health and safety of our employees around the world is of
paramount importance to Bombardier Transportation. This responsi-
bility for our staff manifests itself in a sophisticated system of health
protection and workplace safety. But that’s not all: As a company
operating on a global scale, Bombardier Transportation also strives
to promote and protect diversity and equality.
�0
ccupational health and safety of employees and
environmental protection are considered to be
fundamental to corporate social responsibility.
The Bombardier Inc. Code of Ethics & Business Conduct
addresses self-set requirements for the work environ-
ment, business practices and relationships with external
stakeholders.
Rules and RegulationsBombardier Transportation and its employees are
expected to comply with all applicable laws and regula-
tions. We adopt standards, procedures, contingency
measures and management systems ensuring that our
operations are managed safely, ecologically and in a
sustainable manner.
To protect their own safety and that of their colleagues
and communities, employees are aware of a zero toler-
ance policy with regard to the use of any substance that
could impair their judgment or prevent them from carrying
out their duties efficiently and responsibly.
Accidents per 200,000 Hours (frequency)*
4
3
2
1
0
2.5
2002
1.6
2003
1.2
2004
0.9
2005 2006target
Lost Days per 200,000 Hours (severity)*
40
30
20
10
0
14.6
20052004
16.8
2003
24.1
2006target
2002
31.6
O
* Reporting years from February 1 to January 31
41
Resp
onsi
bilit
y fo
r Our
Em
ploy
ees
Indicators and TargetsBased on a benchmark with best-in-class companies,
in 2000, Bombardier Inc. set corporate-wide targets
for health and safety performance. Two indicators were
defined and used throughout the Bombardier company,
from plant to Group Office level:
> Loss Time Accident (L.T.A.) Frequency: This indicates the total of Loss Time Accidents resulting in at least one day of absence plus the total of Loss Time Accidents with temporary assignments multiplied by 200,000 work hours and divided by the total number of hours worked.
> Loss Time Accident (L.T.A.) Severity: This expresses the total number of lost days away from work (from the first to max. 180 days) plus temporary assignments multiplied by 200,000 work hours and divided by the total number of hours worked.
These definitions differ from the U.S. OHSA definitions for
L.T.A., which would not include temporary assignments.
We have put in place detailed measures to reduce the
accident frequency and severity for all plants. Bombardier
Transportation health and safety performance targets for
2004/05 were 1.25 in terms of frequency and 17 in terms
of severity. For 2005/06, we reduced the frequency target
to 0.5, and to 15 for severity which proved very challeng-
ing. Both frequency and severity have been reduced by
90 % over the last five years.
Near MissesIt is a well-established fact that accidents are usually pre-
ceded by a number of incidents that could have
With the support of the European
Union, Bombardier Transportation
carried out a project designed to
prevent accidents in 2003 at the
plant in Randers, Denmark. The
HSE manager very closely moni-
tors the quality of the investigation,
the analysis and the follow-up on
accidents and near miss accidents
carried out by the safety organiza-
tion and the employees, and Bom-
bardier gives increased attention
to near-miss accidents; the results
are printed in the respective site’s
newspaper. Also, “near-miss” inci-
dents are recorded and analyzed
in the production area where the
“near-miss” was observed.
Product Responsibility and Customer Orientation
Welder working on a metro carbody, Germany��
happened but fortuitously did not. These are called “near
misses”. Employees may detect dangerous situations that
could easily result in an accident. Many of our sites have
already implemented systems for reporting and following
up on such near-misses/dangerous situations. Over time
we expect to eliminate near-miss situations.
Dealing with Severe AccidentsWhile we do all that we can to ensure the health and safety
of our employees and the creation of safe working environ-
ments for both employees and contractors. Unfortunately,
severe accidents do happen. Accidents are taken very
seriously, regardless of whether our own employees or
those of external contractors are involved. The Group has
a very thorough Accident and Incident Directive which
must be followed. All significant cases are reported to the
President of Bombardier Transportation as well as to the
Chairman of the Board and CEO of our parent company.
Improving PerformanceOver the past four years, we have delegated the respon-
sibility for improving their individual accident situations to
our divisions. To assist them in measuring their improve-
ment we have also introduced checks on implementing
certain good practices.
Health and safety performance is an element in the
annual performance assessment for managers.
We started to implement the following procedures
in 2006:
> regular written HSE information for employees.
> regular, documented workplace audits by superiors.
> system for incentives for HSE achievements.
Respective indicators are adhered
to at each site and reported regularly.
43
Resp
onsi
bilit
y fo
r Our
Em
ploy
ees
Personal EducationTraining and development are vital parts of any contem-
porary “learning organization”. Drawing from the pro-
cesses in the Human Resources System, we evaluate
appropriate training and development needs, the evalua-
tion process itself being fully aligned with the Performance
Management Program (part of our Strategic Governance
and Leadership System).
To ensure training and education is efficient, the Human
Resources department works closely with all Bombardier
Transportation functions and divisions. Training and
development are on offer both internally and via external
sources.
“Building Effectiveness” is a management seminar con-
sisting of two three-day modules and is on offer at various
sites. It focuses on how management can use the means
and skills at its disposal to lead staff effectively and with a
clearly defined aim. The agenda also includes customer
orientation and integrity.
So far, these seminars have been offered in German and
English but French and Spanish are scheduled to be
added in the near future.
“Building Leadership” is a 12-month program aimed at a
select group of “High Potential” managers. The first block
started early in 2006, with the second module to follow
in autumn 2006. Some of the areas overlap with “Build-
ing Effectiveness” but with the additional components of
involving top management directly and utilizing real-life
case studies.
A global company like ours has to integrate a wide variety
of cultures. That is why we place special emphasis on our
intercultural responsibility. As a result, our trainers have
developed a seminar on “Intercultural Awareness” which
is adapted according to each division’s individual needs.
Health and safety is a subject of training activities also.
On average, we provide three hours of training annually
per employee.
Equal OpportunitiesWe consider ourselves to be the most international rail
system manufacturer, a characteristic we can back up
with hard facts. At our company, a total of 75 different
nationalities speak 20 different languages. We are able
to supply a team covering everything from engineering
and project management to financing and strategy. The
common characteristic of all our teams, anywhere in the
world, is that they deliver excellent results, customer
satisfaction and a high-performance, reliable product.
We treat all our employees fairly, ethically, respectfully
and with dignity. The Group offers equal employment
opportunities regardless of age, gender, sexual orienta-
tion, disability, ethnicity, religion, citizenship, marital status,
family situation or country of origin. We adhere to that
standard in accordance with the laws and regulations of
each country where we do business.
Percentage of Trainees 2003–2005*
including apprentices and management trainees (lower figure)
2.0
1.5
1.0
0.5
0
1.62
20052003
1.60
2004
1.62
* Data as of December 31
��
Our code of ethics and business conduct protect employ-
ees from harassment, bullying and victimization in the
workplace. This includes all forms of sexual, physical and
psychological abuse. Employees are entitled to work in –
and are expected to preserve – a positive, harmonious
and professional work environment.
On average worldwide, women fill around 10 % of our
middle and upper management positions. Currently
24 % of our staff in South America are female, with
North America (over 12 %) and Asia (11 %) next in line.
In Europe, where Bombardier Transportation has most
of its staff, the quota is 10 %, and 6.5 % in Australia.
There are no women among the 17 employees in Africa.
As a corporate policy, Bombardier is opposed to all forms
of child labor and compulsory labor.
Staff InterestsBombardier Transportation introduced a European-wide
works council in 2001, which meets once a year to dis-
cuss the Group’s development. The council is made up
of employees’ representatives from all the European sites
who meet to coordinate the concerns and requests they
want to present to the management. Those issues are
often workplace- and environment-related.
All these concerns are also subject to open debate at
regular meetings of the works councils that are part of
Bombardier Transportation legal entities in each country.
Bombardier Transportation
embarked upon a global restruc-
turing program between 2004 to
2006 to improve its competitive-
ness. This resulted in the reduction
of 7,600 jobs worldwide and
the closure of several production
plants. About 3,350 jobs in
Germany were shed between
2003 and 2006. It proved to be a
considerable challenge to maintain
the morale and motivation of those
unaffected by the measures, as
well as to support the ones losing
their jobs.
Bombardier Transportation was
fully aware of the situation and
agreed to social plans to com-
pensate the losses. We not only
offered the standard redundancy
payments but also the possibility of
joining a job creation program with
a guaranteed running time of 24
months (or 12 months as of 2006).
At the same time, the company
exploited every possible internal
solution which resulted in some
300 employees moving to other
jobs within the organization.
Bombardier Transportation also
organized job fairs at a number of
sites enabling potential employ-
ers and the Federal Labor Office
to offer job positions to those
affected by the cuts.
We also applied for and obtained
the permission to hire out staff to
other companies which meant that
some employees could work for
other organizations on a trial basis.
During those trial periods, the
company took over all the person-
nel costs, and its good relations
with other companies in the region
and close ties with the employers’
association provided an added
impetus to those measures, as did
management’s personal commit-
ment to the matter.
Whenever there were gaps in the
qualifications of employees who
were asked to perform a certain
task, Bombardier organized and
financed training programs.
Outplacement advisors often
helped provide employees with
new jobs, bypassing the jobs
creation program. We also guaran-
teed psychological and sociologi-
cal support for our staff with the
help of our own doctors or social
workers throughout the entire
restructuring process.
Capacity Adjustments
45
Resp
onsi
bilit
y fo
r Our
Em
ploy
ees
A Responsible Citizen of the World
As the global leader in the rail sector, we recognize that our
business goals must include making a positive difference to the
communities in which we work. This extends beyond the creation
of jobs and wealth, to include the transfer of our knowledge and
expertise where needed, to the demonstration of best practice
in every aspect of our operating behaviour at every level, to the
��
creation of environmentally driven products, systems and services
and to the development of an on-going dialogue with the many
stakeholders with whom we interact. We acknowledge that these
are ambitious objectives that we have set for ourselves. Neverthe-
less, we are working with our employees, customers and suppliers
around the world to turn these statements into reality.
ombardier Transportation’s divisions and sites
around the world are committed to playing a con-
structive role within their communities. However,
in general, the focus for community investment is to con-
sider projects with long-term impact that support youth
and education, local culture and arts, and the environ-
ment. The education-assistance project of Bombardier’s
Chinese joint venture Bombardier Sifang Power (BSP) is
one example.
Following a proposal by company management, BSP’s
labor union offered to help some schools in need of assis-
tance. The Safety and Organization Committee visited six
schools and came back with a list of nearly 40 issues that
needed to be tackled. After consulting with the schools
and company management, the committee finally picked
out a kindergarten and two primary schools to assist, with
projects including installing new lights in the classrooms,
repairing desks and chairs and erecting a soccer goal.
This report is about the future of sustainable mobility and
we believe that there is no better way to secure the future
than to invest in and support education and research.
The Group’s divisions have partnerships with a number of
universities and research institutes internationally.
B
47
A Re
spon
sibl
e Ci
tizen
of t
he W
orld
Our investment in educational and research partnerships
is directly related to the work we do. We provide funding
for individual scholarships as well as for research into
engineering, materials technology, design and manufac-
turing, at some of the world’s major schools of science
and engineering.
Bombardier Transportation was also pleased to become
the founding partner for PlaNet Finance Deutschland
in 2006. This is a brand new initiative for us targeted at
poverty alleviation and economic development in associa-
tion with the micro-finance sector. We expect to report on
more tangible investments in this area in our next report.
In Canada, our divisions may refer worthy projects to the
J. Armand Bombardier Foundation, a non-profit organiza-
tion set up by the founder of our company which provides
student bursaries as well as scholarships and donations
to colleges and universities in Quebec and across
Canada. The Foundation also supports several charity
and relief organizations each year.
IntegrityBombardier Transportation has built its enviable reputa-
tion not only on the excellence of its products and ser-
vices, but also on the honesty and integrity of its people.
India: An Example for the Transfer of Standards and Know-How in Emerging Markets
For over three decades, Bombardier Transportation
India has been working closely with Indian Railways,
earning a solid reputation as a quality supplier of
Propulsion and Signaling equipment. The factory at
Maneja, Vadodara was among the first Bombardier
Transportation facilities to achieve ISO 14001 and
OHSAS 18001 certification and the site has been
accident-free for five years, winning several awards for
outstanding HSE performance.
With the revamped tap changers it introduced recently,
Bombardier Transportation India is contributing to sustain-
ability. Tap changers are electro-mechanical devices used
for varying the voltage on the primary side of the trans-
former to control the speed of a conventional locomotive.
Their typical life expectancy is 18 years after which they
are usually scrapped.
Bombardier Transportation India introduced a refurbish-
ment process that produces near-new equipment at
approximately 60 % of the cost of new ones. About
Vadodara site, India
��
The Bombardier Code of Ethics and Business Conduct
sets the standard for the ethical business practices and
behaviour expected of every employee.
As a global competitor, Bombardier Transportation is sub-
ject to the laws of many jurisdictions, including nations,
provinces, states, municipalities and international bodies.
Bombardier Transportation employees must obey the law
in each jurisdiction in which we operate. We also comply
with anti-corruption legislation in all the jurisdictions in
which we operate. This legislation includes the Corruption
of Foreign Public Officials Act of Canada (and its amend-
ments), which applies to Bombardier’s global business.
Bombardier’s Code of Ethics and Business Conduct
clearly defines how our staff should deal with our cus-
tomers. Employees are not permitted to accept or offer
gifts, invitations or trips abroad. The Code applies at all
times, without exception, to all employees at every level.
Our suppliers and partners, as well as third parties such
as agents are also expected to adhere to the Code.
Any employee who is aware of any breach of the
Bombardier’s Code of Ethics and Business Conduct
must report it to the Compliance Officer at our parent
company. All information is treated anonymously and
confidentially.
India: An Example for the Transfer of Standards and Know-How in Emerging Markets
80 % of the parts and components can be re-used, only
requiring re-machining or re-coating. The whole process
results in the conservation of resources at a high value-
added level, and has significant social aspects: The
cleaning and reworking of the parts is carried out by small
suppliers, helping their business grow while having a
positive knock-on effect for those working at transport
companies.
This activity contributes to all three pillars of sustainability:
environmental protection, economic benefits, and social
development. In addition, Bombardier Transportation
India decided to purchase and re-furbish the facility
that had previously been rented out, and it now serves
as a role model for companies in the neighborhood.
Indian Railways have recognized and appreciated the
huge success of this initiative, and the company is
using that experience in its long-term strategy
planning for maintenance.
49
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1. Strategy and analysis1.1 Statement from the CEO and the COO 2/31.2 Description of key impacts, risks and opportunities * 21, 23-25, 32, AR 99
2. Organizational profile2.1 Name of the company 42.2 Primary brands, products and/or services 52.3 Operational structure and major divisions 5/62.4 Location of organization’s headquarters 4/52.5 Countries with major operations (or relevant to sustainability issues) 7-92.6 Nature of ownership * 52.7 Markets served 5/72.8 Scale of the reporting organization 4/5, 72.9 Significant changes regarding size, structure, or ownership 7, 452.10 Awards received in the reporting period N/A
3. Report parameters a) Report profile3.1 Reporting period interior of front cover3.2 Date of most recent previous report interior of front cover3.3 Reporting cycle interior of front cover3.4 Contact point for questions regarding the report back cover b)Reportscopeandboundary3.5 Processes for defining report content (e.g. materiality, priorities)* interior of front cover3.6 Boundary of report interior of front cover3.7 Statement on specific limitations concerning the scope of the report not applicable3.8 Basis for the reporting on joint ventures, subsidiaries etc. inside cover, 73.9 Data measurement techniques and bases of calculations N/A 3.10 Explanation of the nature and effect of any restatements of information not applicable3.11 Changes from previous reports (boundary, measurement methods) not applicable c)GRI-Index3.12 Table identifying the location of the disclosures in the report 50/51 d)Assurance3.13 External verification of the report none 4. Governance, commitments, and engagement a)Governance AR 184.1 Governance structure, including responsibility for sustainability 12*, AR 184.2 Independence of the supervisory board chairperson 124.3 Number of independent supervisory board members 124.4 Mechanisms for shareholders to provide recommendations to the Board N/A4.5 Link between senior management compensation and sustainability 434.6 Processes for the Board to ensure conflicts of interest are avoided AR 184.7 Expertise of the highest governance body in terms of sustainability issues N/A4.8 Corporate mission, values, and codes of conducts 11/124.9 Board-level processes for overseeing sustainability related risks/opportunities 12*4.10 Processes for evaluating the Board’s performance on sustainability matters N/A b) Commitments to external initiatives4.11 Implementation of the precautionary principle 24*, 26-29*4.12 External initiatives that the organization endorses 13, 19, 204.13 Significant memberships in industry and business associations 13, 20 c) Stakeholder engagement4.14 List of stakeholder groups engaged by the organization 18*4.15 Basis for identification of stakeholders to engage 19*/20*4.16 Approaches to stakeholder engagement (type/frequency) 19*/20*4.17 Key topics raised through stakeholder engagement and response by company 19*/20*
5. Management approach and performance indicators a) Economic performance indicators EC1 Economic performance – Direct economic value created and distributed AR 109/110EC2 Economic performance – Financial implication of climate change 32/33*EC3 Economic performance – Coverage of benefit pension plan obligations AR 89, 97EC4 Economic performance – Significant financial assistance received from government N/AEC6 Market presence – Spending on locally-based suppliers 48*/49*EC7 Market presence – Local hiring, incl. senior management positions N/AEC8 Indirect economic impacts – Infrastructure investments and services provided primarily for public benefit N/A
GRI Content Index (G3 disclosure items—core indicators only)
50
b) Environmental performance indicators EN1 Materials – Weight/volume used 36/37*EN2 Materials – percentage used that are recycled 38EN3 Energy – Direct consumption: primary sources used by company 35*EN4 Energy – Indirect consumption: primary sources used through energy purchased 35*EN8 Water – Total withdrawal by source 36*EN11 Biodiversity – Land used in protected areas N/AEN12 Biodiversity – Significant impacts of activities on protected areas N/AEN16 Emission, effluents, and waste – Total direct and indirect greenhouse gas emissions by weight 32, 36EN17 Emission, effluents, and waste – Other indirect greenhouse gas emissions by weight, e.g. business travel N/AEN19 Emission, effluents, and waste – Ozone-depleting substances by weight N/AEN20 Emission, effluents, and waste – NO, SO, and other significant air emissions by weight N/AEN21 Emission, effluents, and waste – Total water discharge by quality and destination N/AEN22 Emission, effluents, and waste – Total weight of waste by type 37EN23 Emission, effluents, and waste – Total number and volume of significant spills 38EN26 Products and services – Initiatives to mitigate environmental impacts 22-28EN27 Products and services – Percentage recycled 37EN28 Compliance – Fines/sanctions for non-compliance with environmental regulations 16, 38
c) Social performance indicators Labor practices & decent work performance indicatorsLA1 Employment – Total workforce by employment type, employment contract, and region 44/45* LA2 Employment – Breakdown of employee turnover by age group, gender, and region N/ALA4 Labor/management relations–Percentage of employees covered by collective bargaining agreements N/ALA5 Labor/management relations–Minimum notice period(s) regarding operational changes N/ALA7 Occupational health and safety – Injuries, absentee rates and work-related fatalities by region 41-43LA8 Occupational health and safety – Prevention and risk-control programs regarding serious diseases not applicableLA10 Training and education – Hours per year per employee by employee category 44LA13 Diversity and opportunity – Composition of senior management and breakdown of employees (gender/culture) 45*LA14 Diversity and opportunity – Ratio of basic salaries of men to women by employee category N/A Human rights performance indicatorsHR1 Investment and procurement practices – Investment agreements with human rights clauses or HR screening N/AHR2 Investment and procurement practices – Suppliers and contractors that underwent screening on human rights N/AHR4 Non-discrimination – Incidents of discrimination and actions taken N/AHR5 Freedom of association and collective bargaining – Operations with significant risks to collective bargaining and actions taken N/AHR6 Child labor – Operations with risk incidents of child labor and measures taken 45HR7 Forced and compulsory labor – Operations with significant risk for incidents of forced labor and measures taken 45 Society performance indicatorsSO1 Community – Policy to manage impacts in areas affected by activities N/ASO2 Corruption – Business units analyzed for risks related to corruption 49*SO3 Corruption – Employees trained in organization’s anti-corruption policies 12*SO4 Corruption – Action taken in response to instances see 49, not applicableSO5 Public policy – Positions, participation and lobbying 13, 20, 32*SO8 Compliance – Fines/sanctions for non-compliance with laws/regulations 38 Product responsibility performance indicatorsPR1 Customer health and safety – Life cycle stages in which health and safety impacts of products and 15, 27, 37 services are assessed for improvementsPR3 Product and service labeling – Principles/measures 28/29, WebPR6 Marketing communications – Procedures and programs for adherence of laws and voluntary codes 49PR9 Compliance – Fines for non-compliance with regulations concerning the use of products and services N/A
GRI Content Index (G3 disclosure items—core indicators only)
Disclosure on management approach Economy Environment Labor/decent work Human rights Society Product responsibility
Goals and performance 14-16 24, 35-39 14, 42-44 N/A 11/12 15, 26
Policy 11 14 14, 44 N/A 11/12 24, 26/27
Organizational responsibility 14 14 N/A 48/49 26, 29
Training and awareness 13/14, 17 14, 44 N/A 12 28
Monitoring and follow-up 15/16 16/17, 42/43 N/A 12 28/29
Additional contextual information 12 15 42-45 N/A 11/12, 48/49 23, 25, 30/31
AR = Bombardier Annual Report 2005/06 * No complete presentation as per GRI criteria or only examples N/A = No information available
51
GRI C
onte
nt In
dex
Bombardier Transportation
Transportation Sustainability Report 2005/06
Schöneberger Ufer 1
D-10785 Berlin
Germany
Tel + 49 30 98 60 7-0
Fax + 49 30 98 60 7-2000
Contact:
Sharon Christians
Vice President Communications & Public Affairs
Schöneberger Ufer 1
D-10785 Berlin
Germany
E-mail [email protected]
Editorial deadline: October 1, 2006
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www.transport.bombardier.com
* Bombardier, BiLevel, MITRAC, Regina, TALENT, TRAXX and ZEFIRO are trademark(s) of Bombardier Inc. or its subsidiaries.
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