Corporate Responsibility Report 2014 Bombardier Transportation EN by Bombardier Transportation

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Bombardier Transportation Corporate Responsibility Report 2014

TABLE OF CONTENTS

EDITORIAL CORPORATE RESPONSIBILITY STRATEGY BOMBARDIER BUSINESS STRATEGY STAKEHOLDER DIALOGUE PRODUCT RESPONSIBILITY STRATEGY

CUSTOMERS

2 4 5 6 8

Our aim is to satisfy the expectations of our customers by delivering state-ofthe-art products. In close cooperation with our customers we are driving innovation and breaking new ground in rail technologies and efﬁciency.

PUBLIC AUTHORITIES

We see ourselves as partners to shape urban mobility and cooperate in numerous ways with our local stakeholders. Our smart, eco-friendly transportation solutions and systems are the key to addressing major mobility challenges and developing liveable cities worldwide.

SUPPLIERS

We work hand-in-hand with our network of thousands of suppliers and partners worldwide. Managing our supply chain responsibly reinforces our reputation as a leading integrated solutions provider and long-term partner.

EMPLOYEES

Flawless execution of our projects requires highly talented and dedicated people. As an employer of choice we take pride in providing employees with a dynamic and reliable workplace and interesting career opportunities.

COMMUNITIES

Thriving communities are the foundation for our company’s long-term growth. By providing our expertise to the communities where we operate, we are growing local roots and helping to create strong infrastructures.

SHAREHOLDERS, INVESTORS, AND ANALYSTS

Conducting business in an ethical manner is of cardinal importance to our operations, and upholding the highest integrity and leadership is key to our current and future success. Earning and keeping the trust of our shareholders is a priority for us.

PERFORMANCE DATA ABOUT THIS REPORT

38 40

Dr. Lutz Bertling, President and COO, Bombardier Transportation.

ÂŠ Jim Rakete

EDITORIAL

Dear Stakeholders, Today, global mega trends such

It provides examples of how we

Acting as a responsible corporate

as climate change, population

have established long-term

citizen, we follow an integrated

growth, urbanization, and congestion

partnerships with our stakeholders

approach to meeting our stakeholder

are presenting major challenges

to build communities and improve

demands and generating sustainable

to governments, communities, and

the quality of life wherever we do

growth. As we lead the way in The

individuals around the world.

business.

Evolution of Mobility, we take pride in Moving Minds responsibly.

Without state-of-the-art public transportation solutions, these

We work closely with our customers

challenges will become acute.

to build a relationship based on mutual understanding and trust. As

For Bombardier Transportation,

an innovation driver, our technologies

creating better ways to move the

help them to reduce their lifecycle

world is the heart and soul of our

costs and lower their impact on the

business activities. We provide

environment. Since our supply chain

integrated solutions to the

is constantly evolving, we regularly

universal need to connect people â&#x20AC;&#x201C;

liaise with our suppliers to ensure

Dr. Lutz Bertling

in cities, regions, and countries

they become more and more

President and COO

worldwide. And we do so in a way

integrated with our operations.

Bombardier Transportation

that respects people and our planet. As a leader in our industry,

The development of high-quality

we are an active supporter of the

products and services requires

principles of the United Nations

a highly skilled workforce. Thus,

Global Compact. We believe in the

we continuously train nearly

fundamental importance of

40,000 employees, ask for feedback,

corporate responsibility (CR) as it

and conduct engagement surveys

creates value for our customers,

on a regular basis to ensure they are

the communities in which we

highly committed.

operate, our industry, our employees, and for our own

Since we want to make a

business.

sustainable impact in our communities, we continue to base

Our 2014 Corporate Responsibility

our donations and sponsorships

Report shows how CR is embedded

approach on contributions that are

in our business model throughout

aligned with our global footprint

our operations, global supply chain,

and our 3E approach: Education,

and product development.

Environment, and Entrepreneurship.

CORPORATE RESPONSIBILITY STRATEGY

SETTING NEW STANDARDS IN SUSTAINABLE MOBILITY The Bombardier Corporate Responsibility Mission As the world’s leading manufacturer of both planes and trains, Bombardier provides the transportation solutions of tomorrow that drive value by addressing mobility needs while respecting the planet and its people. By conducting our business in collaboration with, and to the beneﬁt of, our stakeholders, Bombardier creates the conditions that foster engaged talent, constant innovation, and the eco-efﬁcient products and services that shape The Evolution of Mobility. This is how we move forward, responsibly.

Bombardier Trans-

OneBT Helps Us Deliver Our Corporate

portation Provides

on Our Promises

Leading Mobility Solutions Worldwide

In light of a dynamic economic environment, in 2014 we implemented

Responsibility Strategy Yields Measurable Results

a new organizational structure that Bombardier Transportation is a

enables us to fulﬁll our promise to

As Bombardier seeks to provide

leading provider of rail technology

deliver innovative, sustainable, and

the most innovative and sustainable

products, systems, and services.

ﬁnancially responsible results while

transportation solutions for today

We are headquartered in Berlin,

maintaining our leadership position

and tomorrow, we analyze the

Germany, and are a business

in the industry. This new structure

environmental, economic, and

segment of Bombardier Inc., based

lies at the center of our internal

societal impact of everything we do.

in Montreal, Canada. Our 39,700

improvement initiative, OneBT.

employees worldwide drive our

Aligned with our overall strategy, the

The better we understand the needs

success by developing innovative

goals of OneBT are to increase both

of our stakeholders and the impact

products designed to meet the

the efﬁciency and the proﬁtability of

of our actions, the better we are able

global need for efﬁcient, environ-

our business. To achieve this, we will

to create both ﬁnancial and non-

mentally friendly mobility solutions.

bring the standardization of our

ﬁnancial value. We partner with our

products, systems, processes, and

customers, suppliers, and commu-

Our installed base of more than

tools to maturity. We are striving to

nities to foster innovation and to

100,000 vehicles in more than

generate savings that can be invested

build eco-efﬁcient products that

60 countries is evidence of our

in research and technology in order

shape the future of mobility. Together

success. In 2014, revenues from

to strengthen our market position. We

with these stakeholders, we provide

our rail transportation activities

continue to share knowledge and fos-

opportunities for talents to ﬂourish

reached US$9.6 billion, an increase

ter collaboration beyond our immedi-

in the communities where we and our

of 9.7% year-over-year.

ate teams and think and act as OneBT.

partners operate.

BOMBARDIER BUSINESS STRATEGY

CREATING VALUE IN A DYNAMIC GLOBAL MARKETPLACE Bombardier is shaping The Evolution

proof of Bombardier’s commit-

Being a global leader requires

of Mobility through its growth

ment to this path – even in

ﬂawless execution at every stage.

strategies based on three inter-

challenging economic climates.

Bombardier constantly strives

related elements: investing in

to deliver high-quality products

leading mobility solutions, growing

Bombardier continues to

on time and on budget to ensure

local roots in key markets, and

strengthen its presence in its

our continued growth in an

striving to achieve ﬂawless execution

traditional markets of Europe

increasingly competitive market.

every step of the way.

and North America. However, as demand from non-traditional

A sound strategy needs a robust

Innovative mobility solutions

markets is set to rise over the

foundation. Bombardier’s strategy

have been the hallmark of

next decades, Bombardier is

rests on four pillars: attracting

Bombardier’s business through-

growing local roots in new key

great talent globally, exercising

out its history. Over the years,

markets such as South America,

strong ﬁnancial discipline, actively

this achievement has translated

Asia-Paciﬁc, the Middle East,

managing risk, and integrating

to a lasting competitive advantage,

and Africa by creating employ-

sustainability.

and continued investment in

ment opportunities and engaging

cutting-edge technologies is

communities in these regions.

Growth Strategies VALUE CREATED FOR SHAREHOLDERS, CUSTOMERS, SUPPLIERS, EMPLOYEES, GOVERNMENTS, COMMUNITIES & NGOS

OUR GROWTH STRATEGIES INVEST IN LEADING MOBILITY SOLUTIONS

GROW LOCAL ROOTS IN KEY MARKETS

ACHIEVE FLAWLESS EXECUTION EVERY STEP OF THE WAY

OUR COMPETITIVE FOUNDATION GREAT TALENT GLOBALLY

STRONG FINANCIAL DISCIPLINE

ACTIVE RISK MANAGEMENT

INTEGRATED SUSTAINABILITY

STAKEHOLDER DIALOGUE Creating Long-term

Stakeholders’

Partnerships with Our

Requirements Are

Stakeholders

Our Priority

ability to create business and societal value. When asked which topics should most concern Bombardier Transportation over the next three years,

Our aim is to create long-term

In 2014, Bombardier Inc. commis-

internal and external stakeholder

partnerships with our stakeholders

sioned an external consultancy to

groups agreed on the following

based on mutual trust and integrity.

conduct a stakeholder survey in

areas:

line with the AA 1000 Stakeholder We recognize that different stake-

Engagement Standard as deﬁned by

Product reliability, safety, and

holders have different expectations.

AccountAbility, the global non-proﬁt

security

To get a balanced view of their

organization for promoting account-

An expected shortage of skilled

needs, we engage with our stake-

ability, sustainable business practices,

workers

holders on a regular basis, using

and corporate responsibility.

Supply chain’s ability to react

a variety of tools. This includes

to changing demand

informal one-on-one conversations,

More than 800 internal and external

Emerging economies

formal stakeholder consultations,

stakeholders representing the most

and participation in various industry

inﬂuential groups, i.e. customers,

These themes correspond with the

initiatives.

public authorities, suppliers, employ-

overarching global trends reﬂected

ees, communities as well as share-

in our business strategy.

The results of these dialogues help

holders, investors, and analysts,

us determine which material topics

participated in the online assessment.

Bombardier followed up with one-on-

to focus our CR efforts on, but they

Both internal and external stake-

one interviews, and this deeper analy-

also inﬂuence our strategic planning

holders perceived Bombardier as a

sis revealed that external stakeholders

and reporting priorities. Dialogue

leader in the railway industry. The

placed high importance on the en-

with our stakeholders helps us to

traits that most reﬂect our leader-

vironmental impact of our business

put the right programs in place to

ship capabilities were game-changing

and expressed a more explicit desire

create value for society and generate

products, commitments and policies,

for cleaner technologies. This feed-

proﬁtable, sustainable growth.

ambitious plans and goals, and our

back validated our commitment to

Bombardier’s Most Important Stakeholder Groups

CUSTOMERS

EMPLOYEES

PUBLIC AUTHORITIES

SUPPLIERS

COMMUNITIES

SHAREHOLDERS, INVESTORS & ANALYSTS

STAKEHOLDER DIALOGUE

being a determined innovation driver with an exceptionally broad portfolio

Recognizing Bombardier’s

of eco-efﬁcient products and services,

Pro-active Approach

supported by our BOMBARDIER* ECO4* technology.

The Canadian Society of Corporate Secretaries honored Bombardier Inc. with its 2014 Excellence in Governance Award. Members of the jury praised

The results of the survey and stake-

Bombardier’s approach to creating value for its stakeholders by commenting,

holder dialogue have also been shared

“What distinguishes Bombardier is how it strives to be proactive, rather than

with Bombardier’s President and

simply reacting to stakeholder concerns. It has created a variety of tools to

CEO and the leadership teams across

ensure it can be ‘on top of’ or, preferably, anticipate, stakeholder concerns.”

all business segments. The voices of

Moreover, Bombardier’s dedication to sustainability has also been acknowl-

our various stakeholders carry consid-

edged by the ﬁnancial markets. As of 2014, Bombardier Inc. has been listed

erable weight in our product develop-

on the Dow Jones Sustainability World and North America Indices for eight

ment processes, as we will show in

consecutive years.

more detail in the following chapters.

A Leader in the Industry

It highlights research opportunities

to advancing the industry in a

for developing a sustainable

sustainable manner.

next-generation rail transportation

Open Dialogue

We are conscious of our leadership

system throughout Europe. As a

role in developing products that

signatory of the International

have a positive impact on the envi-

Association of Public Transport

ronment and society. We actively

(UITP) sustainability charter, we

participate in sustainability initia-

work closely with them and

For over ten years, we have hosted

tives in our industry to raise the

participate in the working group

an annual Supplier Day to foster

standard with regard to product

“Environment” of the German

dialogue with our business suppliers.

safety, supply chain management,

Railway Industry Association (VDB).

At a 2014 event titled “Collaboration

and CO emissions. Under the chair² manship of Bombardier Transpor-

As a member of the Association of

along the Value Chain” over 120 key

the European Rail Industry (UNIFE),

suppliers participated in open forum

tation’s former Chief Technical Ofﬁ-

Bombardier Transportation founded

discussions along with Dr. Lutz

cer, the European Rail Research

the organization’s Sustainable

Bertling, President and COO of

Advisory Council (ERRAC) presented

Transport Committee and continues

Bombardier Transportation, to help

the Rail Route 2050 agenda to the

to play an active role. These efforts

forge even stronger partnerships

European Commission.

are a testament to our commitment

with our suppliers.

with Our Suppliers

Our annual Supplier Day provides a forum for sharing information and intensifying dialogue.

RESPONSIBILITY GUIDES OUR PRODUCT STRATEGY A Determined

Lifecycle Costs as a

15 Years of

Innovation Driver

Key Factor

Environmental

Whether it is an incremental

All along the value chain, suppliers,

improvement or a major leap

manufacturers, and operators are

forward, our ability to innovate is

increasingly concerned with reducing

what drives The Evolution of

mobility solutions’ lifecycle costs

In 1999, we began assessing the

Mobility. Our success stems from a

(LCC). As operating costs are much

environmental impact of our

proven track record of improving

higher than the initial investment,

products throughout their entire

the passenger experience while

LCC calculations are a key tool in

lifecycle. To communicate our

enabling operators to meet their

assessing the true value of invest-

ﬁndings in an internationally

business objectives. At the same

ment expenditures. Our lifecycle

accepted and transparent manner,

time, our smart, eco-friendly

approach looks at factors such as

we began publishing Environmental

solutions are the key to addressing

customer availability needs, ﬂeet

Product Declarations (EPDs)

major mobility challenges and

utilization, and maintenance prac-

following the international EPD®

developing liveable cities worldwide.

tices to simulate the interplay of

system.

This approach is reﬂected in our

technical components even before

product responsibility strategy and

the design process begins.

Product Declarations

Our EPDs are compliant with both the Association of the European

integrated into our innovation Our BOMBARDIER* MOVIA* C30

Rail Industry (UNIFE) Product

metro for Stockholm and S-Bahn

Category Rules for Rail Vehicles

Thinking

Hamburg uses a web-based feed-

(PCR 2009:05) and the respective

back loop on the Engineering

International Organization for

in Cycles

Logistic Support Analysis (ELSA)

Standardization (ISO) norms. Since

portal. ELSA helps us to gather and

the ﬁrst EPD for the Stockholm

We apply a lifecycle approach to

analyze data from a customers’

Metro published 15 years ago, by

all product development steps.

day-to-day operation and provides

the end of 2014, we had released a

From a product’s initial design to

insight into how we can improve

total of 15 EPDs. While we pub-

its end-of-life, we analyze its

the next generation of vehicles.

lished EPDs for the BOMBARDIER*

performance at every stage so that

Our ECO4 technologies, developed

INNOVIA* APM 300 and for

we can pinpoint areas where we

in cooperation with operators, also

BOMBARDIER* OMNEO* in 2014,

can mitigate risks while improving

let us deliver increased efﬁciency

our goal is to issue EPDs for all

economic and environmental

and superior environmental

new products by 2020.

efﬁciency. Combined with feedback

performance. Our award-winning

provided by our customers,

BOMBARDIER* ORBITA* condition-

employees, and passengers, we use

based maintenance system is

this analysis to ensure that our

another way we provide customers

mobility solutions meet tomorrow’s

with savings and expertise long

transportation expectations.

past the development phase.

process.

PRODUCT RESPONSIBILITY STRATEGY

“We are increasingly putting the lifecycle of our trains in the focus – we want our products to continuously reduce their environmental and ﬁnancial footprint.” Martin Ertl, Head of R&D, Chief Technology Ofﬁce

BOMBARDIER PRODUCT LIFECYCLE

END-OF-LIFE Today more than 95% of the materials in our rail vehicles are recoverable. Our aim is for all of our new products to be 100% recoverable by 2025. We are working with industry organizations and suppliers to increasingly use renewable resources as well as materials that are easier to separate and disassemble for a second life, as speciﬁed in our EcoDesign approach.

02 SUPPLY CHAIN Even before designs are ﬁnalized, we implement a rigorous selection process to identify the best suppliers, materials, and technologies. With our strategy of growing local roots in key markets in mind, we work together with local suppliers to decrease ﬁnancial and environmental risks and help strengthen economies and communities around our manufacturing sites.

04 PRODUCT USE AND MAINTENANCE We want our customers to get the most out of our products – including a safe and pleasant passenger experience and best-in-class environmental performance. We are broadening our support services around the world. This helps us better understand the challenges customers face throughout a product’s active life.

DESIGN We design innovative mobility solutions to meet customer needs while taking into account global trends to ensure a differentiated product line. Dialogue with customers and passengers begins at the earliest design stages so we can incorporate their priorities and needs. Our EcoDesign (formally Design for Environment) and Design for Safety approaches are also applied during the design phase, ensuring high environmental and safety performance at every stage of the product lifecycle.

MANUFACTURING AND TESTING We strive to achieve flawless execution by providing a safe, clean, and lean manufacturing process. This process and our approach of conducting product testing prior to entry-into-service ensure our products perform as designed and adhere to all compliance, safety, and environmental regulations.

DESIGN

SUPPLY CHAIN

MANUFACTURING AND TESTING

Our EcoDesign and Design for Safety

We manage our supply chain

We continually strive to operate at

(DfS) principles ﬁrmly anchor environ-

responsibly and cooperate closely

high standards of health, safety, and

mental and safety considerations in

with our suppliers in order to build

environmental (HSE) performance.

the innovation process and guide our

highly advanced, safe, and eco-

Zero occupational illness and injury

product development.

friendly rail vehicles. This entails

and minimizing our overall organi-

ensuring the supply chain’s economic

zational environmental footprint are

From the start, we take all relevant

viability and promoting human

our long-term goals. To achieve

impacts of a product throughout its

rights and internationally accepted

these goals, we have set ourselves

lifecycle into account and identify

labor standards. As a prerequisite

an array of short-term targets:

innovative design solutions to eco-

to becoming our partner, we expect

nomic, environmental, and safety

suppliers to sign and adhere to

Reduce absolute energy consump-

challenges. As a result, we are able

our Supplier Code of Conduct, which

tion, greenhouse gas (GHG)

to maximize recyclability and recov-

clearly lays out our expectations

emissions, waste consumption,

erability, eliminate hazardous sub-

in terms of labor standards, legal

and waste by 1% between 2014

stances, and invest in technologies

compliance, health and safety,

and 2016, compared to 2013 data;

that improve passenger safety and

environment, anti-corruption, ethics,

energy efﬁciency as well as reduce

conﬂicts of interest, and governance.

Reduce relative water

emissions. As safety is a top concern,

In particular, the environmental

consumption and waste by 1%

we provide advanced training in

impact of our suppliers’ products

and energy consumption and

EcoDesign and Design for Safety

are systematically managed via

GHG emissions by 3% per

principles and to date, a total of

a new database where suppliers

200,000 worked hours between

1,588 additional engineers have been

enter detailed information about

2014 and 2016, compared to

trained. In addition, we are part of an

the materials they are using.

2013 data; and

industry-wide TecRec initiative implementing new ﬁre and crash safety rules in 2016 and 2017, respectively. 10

PRODUCT RESPONSIBILITY STRATEGY

Increase waste valorization

and research institutes. Bombardier

customer safety incidents

(valorized waste compared to

Transportation Netherlands has

worldwide.

total waste) by 3% between 2014

received top-level certiﬁcation

and 2016, compared to 2013 data.

(level 5).

Moreover, we are currently involved in a wide-ranging study of HSE practices in our industry. In addition

PRODUCT USE AND MAINTENANCE

END-OF-LIFE

Even when our products reach the end of a long useful life, we still

to company-wide measures and activities, individual sites run initia-

Customers want our products to

take responsibility for the post-use

tives to meet our environmental

provide a pleasant passenger

phase. We are working with industry

targets. One of these is the CO ² Performance Ladder at Bombardier

experience, uncompromising safety,

organizations and suppliers to

and excellent environmental per-

achieve 100% recoverability of the

Transportation in the Netherlands.

formance. To meet their increasing

materials by 2025. We were heavily

This customer-initiated tool

expectations, we are expanding

involved in the development of the

encourages companies to analyze

our support services globally. While

common UNIFE Recyclability and

and reduce their own and their

safety is designed into all of our

Recoverability Calculation Method

suppliers’ CO emissions. Tried² and-tested approaches are shared

rail vehicles, we are always taking

released in 2013 and continually

additional measures to raise our

ﬁnd new ways to reduce the environ-

with participating companies,

standards even further. In 2013, we

mental impact of our products.

non-governmental organizations

launched a new Safety Bulletin

(NGOs), governmental bodies,

System that tracks transportation

ECO4 PORTFOLIO

Our ECO4 portfolio of technologies

Today, our modular suite of ECO4

However, the ECO4 range is not

supports our holistic, lifecycle ori-

technologies consists of 15 inno-

simply a product portfolio, but

ented approach to product devel-

vative solutions, including ﬁve

a roadmap for sustainable trans-

opment. The ECO4 portfolio reduces

industry ﬁrsts, across approximately

portation solutions. Below we

overall energy consumption by

120 applications. We continue to

present a selection of our most

up to 50% compared to current

implement these technologies in a

innovative solutions from the ECO4

solutions and lowers emissions

growing number of products while

portfolio.

by up to 80%.

also expanding the portfolio itself.

BOMBARDIER* MITRAC* Energy Saver The innovative double-layer ultracapacitors store the energy released each time a vehicle brakes and reuse it during acceleration or operation. Applied to a light

BOMBARDIER*

rail vehicle, the system has – over

FLEXX* Eco Bogie

confirmed to save up to 30% of

several years of testing – been

EcoSilent Optimized Sound Design

energy. It also enables catenaryFLEXX Eco bogie is an exciting

free operation for limited dis-

EcoSilent is a holistic approach

product within the Bombardier

tances and can be used as a

to sound optimization that ad-

bogie portfolio that enables sig-

performance booster by adding

dresses both the reduction of ex-

niﬁcant reductions in energy con-

extra power during acceleration.

terior noise while harmonizing

sumption and noise emissions.

interior sound to ensure comfort

With almost 1,000 units in opera-

for passengers. For the interior,

tion worldwide, the FLEXX Eco

EcoSilent ensures all-round audio

bogie has proven reliability.

comfort for passengers by the use of a “sound studio” concept.

PRODUCT RESPONSIBILITY STRATEGY

EcoSilent Optimized Sound Design

Visual Improvement

100% Energy Savings

30% Energy Savings

15% Energy Savings

26% Energy Savings

20% Reduced Particle Emissions

87% Increased Efﬁciency

PRIMOVE* Contactless and CatenaryFree Operation

MITRAC* Energy Saver

EBI* Drive 50 Driver Assistance System

ThermoEfﬁcient Climatization System

EnerGstor Wayside Energy Storage

C.L.E.A.N. Diesel Power Pack

MITRAC* Permanent Magnet Motor

Noise Reduction

50% MITRAC* Hybrid

Reduced Emissions

80%

AeroEfﬁcient Optimized Train Shaping

Energy Savings

EnerGplan Simulation Tool

Energy Savings

EcoEfﬁcient Optimized Environmental Performance

FLEXX* Tronic Technology

FLEXX* Eco Bogie

Energy Management Control System

12% 20% Recoverability

>95% Energy Savings

5% Reduced Lifecycle Costs

25% Energy Savings

10%

*Trademark(s) of Bombardier Inc. or its subsidiaries.

CUSTOMERS “Our trains have to provide outstanding comfort and an enjoyable travel experience but also reliability and efﬁciency.”

CUSTOMERS

DESIGNED BY BOMBARDIER – DEVELOPED WITH CUSTOMERS Access to modern railway transportation when moving across cities, countries, or even continents improves an individual’s quality of life. Our aspiration is to provide our customers and passengers worldwide with the safest, most advanced, and most sustainable mobility solutions possible. By driving innovation in close cooperation with our customers, we are continuously breaking new ground in rail technologies and efﬁciency.

A Product Portfolio That Looks to the Future

innovative and sustainable mobility solutions, but also outstanding service. To add more customer focus, we launched the internal improvement initiative OneBT in January

Ranging from complete trains to sub-systems,

2014. This organizational shift will give us the

maintenance services, system integration, and

agility needed to enter different markets

signaling, all our products are developed with

with robust platforms and respond to our

the challenges of tomorrow in mind. Deep and

customers’ needs. The leaner, more efﬁcient

long-standing relationships with our customers

organization allows us to work more closely

and suppliers help us design smart and eco-

with our customers throughout the entire

friendly solutions to address major mobility

design and production process.

challenges and develop liveable cities worldwide. Our EcoDesign methodology targets new standards in environmental performance while maintaining safety, comfort, and reli-

We employ more than 39,000 people

ability. We take a lifecycle-oriented approach

in 38 countries.

to product responsibility and address all

We run production and engineering

stages of product development. This ensures

sites as well as service centers in

that we deliver continuous technological

27 countries.

advancement with a positive impact on the

Our products and services are sold

world around us – today and tomorrow.

in more than 60 countries. Our portfolio of innovative rail

Satisfying Our Customers

products remains unsurpassed by

through Lean Processes

More than 100,000 Bombardier

our competitors. Transportation vehicles are in

We continuously strive to distinguish

operation worldwide.

ourselves by delivering not only the most 15

Customer Feedback Drives Innovation For an innovation driver, regular customer feedback is essential. Workshops with customers from our key markets in Europe, the United States, and Asia help us continue to develop market-driven, competitive solutions for the mobility needs of the future. We therefore introduced a new evaluation process in 2014 in accordance with the International Railway Industry Standard (IRIS). For instance, we invited the top eight customers from our Systems

The new ALP-45DP locomotive accomodates electriﬁed and non-electriﬁed traction modes.

division to participate and were pleased to see that they consistently

requirements across different

problem in March 2013. The new

perceive us as a leader in product

markets. In 2013 and 2014, Research

ALP-45DP operates on both elec-

innovation.

Infosource, Canada’s source of

triﬁed and non-electriﬁed tracks,

R&D intelligence, recognized

offering passengers a seamless,

Our customers demonstrated their

Bombardier Inc. as Canada’s top

shorter, and a safer trip to the Big

appreciation for our high-quality,

R&D investor. Our innovative power

Apple. The ﬁrst ﬁve ALP-45DP

innovative, and cost-efﬁcient prod-

allows us to develop safer, cleaner,

locomotives started running from

ucts by awarding the 2014 SNCF

and more convenient ways of

Dover, New Jersey, to Penn Station

Trophy to our Crespin site in France

traveling while maintaining our

in New York City in March 2013, a

for “Best Manufacturer and Site”

competitive edge and proﬁtability.

full year ahead of schedule. Since

and recognizing us as the “Transport

then, NJT has provided reliable, fast,

Supplier of the Year” at the 2013

and convenient service for thou-

UK National Transport Awards. To

A Smooth Ride with

sands of passengers commuting to

further grow strong roots in local

New Jersey Transit

Manhattan every day.

markets, we have augmented our service and opened 11 new support

Efﬁciency and

and maintenance sites across the

New Jersey Transit (NJT) is the

globe.

third-largest public transportation

Safety Thanks to

system in the United States,

BOMBARDIER*

One Step

connecting the major metropolitan

Ahead through

and Philadelphia. Until recently,

Research and

NJT’s New York-bound passengers

While convenience and speed are

had to change trains before reaching

often a passenger’s main concern,

Development

their destination because the track

safety is at the top of Bombardier’s

was only partly electriﬁed.

list. For example, the INTERFLO 550

areas of New York, New Jersey,

Continuous investment in research

INTERFLO* 550

is a rail control system that auto-

and development enables us

The BOMBARDIER* ALP*-Dual

mates the ﬂow of trains. It works

to satisfy our customers’ evolving

Powered locomotive solved this

wirelessly – without trackside

CUSTOMERS

equipment, which can be damaged or vandalized – and it also prevents

BOMBARDIER*

any attempt to contravene a

AVENTRA* Trains

movement authority or given speed

Designed with

restriction. In addition, the INTERFLO 550 provides the vehicle

UK Expertise

driver with up-to-date information about the track that lies ahead.

reliability, and low energy consumption. The AVENTRA system was developed in the UK by experienced engineers, with input from stakeholders such as train operators, suppliers, and passengers. Each Crossrail train will be just over

Around 200 million passengers are

200 meters long and provide space

expected to travel annually to and

for more than 1,500 passengers,

The system was used as the stan-

from London, making congestion

making travel in the region quicker

dard for the European Rail Trafﬁc

in this city of eight million inhabitants

and easier, even during peak

Management System (ERTMS) due

a pressing concern. In February 2014,

periods. The AVENTRA system is

to its safety and reliability and also

we were selected to supply and

modular and can be tailored to

received the Bombardier Trans-

maintain 65 AVENTRA Electrical

suit different market requirements,

portation Innovation Award in 2014.

Multiple Units (EMU) for the ambi-

making it an innovative solution

It has already been installed on

tious Crossrail infrastructure project.

for metro trains and intercity

the Västerdal line in Sweden and we

This was an important endorsement

connections alike.

expect it to be installed on many

of our new trains, which feature

routes in emerging markets.

signiﬁcantly reduced weight, high

AVENTRA engineers optimized travel time in all regards: even the doors open and close faster than conventional doors.

PUBLIC AUTHORITIES â&#x20AC;&#x153;A modern public transportation system must be able to respond quickly to the sustainability challenges facing city councils.â&#x20AC;?

PUBLIC AUTHORITIES

SHAPING THE FUTURE OF URBAN MOBILITY Today, 54% of the world’s population lives in urban areas, and this is expected to increase to 66% by 2050*. Rapid urban growth and the congestion, pollution, and noise that come with this growth create a host of challenges for city planners and public administrations.

Custom Mobility Solutions for Public Partners around the World

new infrastructure projects and help deliver mobility solutions to millions of inhabitants. The following examples illustrate how our collaboration with public authorities shapes

With a growing number of people living

urban transportation systems and fosters

in urban areas, innovative mobility solutions

social development.

are vital to improving living standards by providing access to employment, education, healthcare, and cultural centers.

Developing a Modern Public

Without cutting-edge technology in public transportation, cities will become increasingly

Transport System

congested and polluted. As CO emissions ² from the transport sector – mainly from cars –

for Saudi Arabia

are already approaching 3.5 billion tons

Saudi Arabia’s capital, Riyadh, is expected

worldwide yearly, Bombardier Transportation

to grow from almost six million to eight million

is connecting individuals and their commu-

inhabitants by 2030 and the construction

nities sustainably.

of the new King Abdullah Financial District is a key project to modernize this ﬂourishing

We work closely with city planners, govern-

city and make it more liveable. As part of the

ment authorities, civil engineers, and transport

ArRiyadh New Mobility (ANM) international

operators to create innovative and sustain-

consortium, city planners have commissioned

able methods of eco-friendly and comfort-

us to supply, install, operate, and maintain an

able transportation. With our expertise and

INNOVIA Monorail 300 system to provide this

ﬂexible ﬁnancing models, we engage in

district with efﬁcient and clean public

public–private partnerships that support

transportation.

*UN report “World Urbanization Prospects 2014”

Advantages of INNOVIA Monorail 300 System:

São Paulo’s New Monorail System Creates Jobs

Turnkey solution for fully integrated systems Fully automated operation, allowing shorter headways between trains

Just as in Riyadh, city planners in

Lightweight, energy-efﬁcient vehicles

São Paulo agreed that the INNOVIA

Flexible conﬁgurations and capacities

Monorail 300 system was the right

Excellent ride quality

way to provide mobility to their

Low noise levels

rapidly growing city.

Fast to Implement with Minimal Disruption:

As part of a consortium, Bombardier Transportation has been commis-

Quick construction

sioned to build a new monorail

Easy installation in the existing urban environment

system linking the sprawling city’s

Cost-effectiveness, using industrially pre-fabricated segments

center to the eastern suburbs and the outer region in Tiradentes. Currently, the 24-kilometer journey

The INNOVIA Monorail 300 won

management expertise through

takes about two hours. However,

the Chicago Athenaeum Museum

on-the-job training, international

once complete the new monorail

of Architecture and Design’s GOOD

assignments, and in-class and online

system will cut travel time in half,

DESIGN® Award in 2014 for its

instruction. In 2014, eleven gradu-

returning some additional leisure

innovative and cutting-edge design.

ates from Saudi Arabia successfully

time to busy commuters.

The metro cars will be powered

completed the two-year program

by MITRAC rotary motor propulsion,

and received positions within our

The new system will also be the

one of the most efﬁcient and eco-

company. The Academy is to be

world’s largest and highest-capacity

friendly engines on the market.

launched in other countries in the

monorail. Designed to comfortably

The lightweight FLEXX Eco bogies

region as our roots in the Middle

move half a million people per

combined with aluminum car-

East become more established.

day, the monorail features spacious

bodies will further limit overall energy consumption. Moreover, the trains offer comfortable seating and feature modern communication and security technologies. As a business dedicated to growing roots in local markets, we are also supporting the changes in Saudi Arabia’s urban transport infrastructure. The successful realization of these ambitious projects depends on highly qualiﬁed professionals and specialists. In 2012, we opened a Project Management Academy (PMA) in Saudi Arabia where recent graduates and engineering or business professionals are given the opportunity to develop their project 20

Riyadh's new monorail perfectly ﬁts into the urban environment.

PUBLIC AUTHORITIES

interiors and increased capacity. In particular, its driverless technology allows for greater efﬁciency as headway times can be shortened to just 75 seconds. The line is set to open in phases and will assume full operations within the next two years. Moreover, by opening a new production site in the industrial town of Hortôlandia, we have created 250 jobs within the region and supported the creation of another 500 positions with our local suppliers. The consortium has also planted over 3,000 trees to offset carbon emissions and is working with 52 schools, two hospitals, and two medical centers to educate the community about their new transit

Seamless urban integration for the INNOVIA Monorail 300 system in São Paulo.

system. In addition, our INNOVIA Monorail 300 system received the

characteristics of the Gold Coast.

beat the heat of the long Australian

“Systems Supplier of the Year” and

The result was a stylish and modern

summers. Perhaps most importantly

“Best Manufacturer of Passenger

tram with a wave motif featuring

for the Gold Coasters, their new

Vehicles” at the annual Revista

the Gold Coast’s signature colors

FLEXITY 2 trams are the ﬁrst trams

Ferroviaria Awards in São Paulo,

and the most powerful air-condi-

to feature built-in racks specially

Brazil, in both 2012 and 2014.

tioning unit in a tram of its class to

designed to hold surfboards.

Stylish Design for Gold Coast Trams In 2014, as part of a consortium, we were commissioned by the government of Queensland, Australia, to design, build, finance, operate, and maintain the first stage of the Gold Coast Rapid Transit light rail public transportation system. The centerpiece of this system is the 14 distinctive BOMBARDIER* FLEXITY* 2 light rail vehicles. Designed by our Industrial Design team in Brisbane, the trams were intended to reflect the unique

The new electrically powered, low-ﬂoor FLEXITY 2 trams are equipped with air conditioning and luggage racks for surfboards.

SUPPLIERS “We value the trust and transparency in our long-term relationship with Bombardier Transportation.”

SUPPLIERS

PARTNERING WITH OUR SUPPLIERS WORLDWIDE We work with thousands of suppliers worldwide to manufacture innovative and high-quality products that also meet increasing requirements for ethical business practices and environmental responsibility. In accordance with our commitment to growing local roots, we support our suppliers in their own corporate responsibility initiatives. Our competitive edge results from long-term partnerships with our suppliers based on mutual trust and transparency.

Supplier Sustainability Awards Honor Outstanding Initiatives

S.p.A. earned the 2014 Supplier Sustainability Award for their excellent standards. Knorr-Bremse AG, a leading manufacturer of braking systems for rail and commercial vehicles, was recognized for integrating

Our suppliers play an important role in our

corporate responsibility into its management

value chain. Applying responsible business

system and all processes throughout the

practices and delivering environmentally

company. In the category for companies with

friendly components beneﬁt our own and

fewer than 500 employees, Clerprem S.p.A.,

our suppliers’ reputations. We recognize

a manufacturer of components and seating

outstanding suppliers each year with our

systems for the automotive and rail indus-

Supplier Sustainability Award to acknowledge

tries, won an award for its innovative ultra-

their contributions. The selection process

lightweight seats, which reduce energy

focuses in particular on product innovation,

consumption, as well as for its societal

responsible procurement, and environmental

engagement. In 2013, the award highlighted

stewardship. In 2014, more than 50 suppliers

the dedication of Inﬁneon Technologies AG

submitted applications with noteworthy

and Willowglen Systems Inc.

initiatives. Knorr-Bremse AG and Clerprem 23

Reducing Risk through Audits and Information Sharing

suppliers followed our invitation to the Supplier Day in Berlin to enhance collaboration along the value chain. Furthermore, as a joint drive with other leading rail technology companies, Bombardier Transportation developed “Rail-

Gian Roberto Marchesi, CEO of Clerprem S.p.A., receives the Supplier Sustainability Award 2014 from Charles O'Donnell, CPO, Bombardier Transportation.

Working with a multitude of sup-

sponsible,” a global initiative aimed

pliers in different geographical

at fostering responsible procure-

regions entails certain risks. To limit

ment and standardizing the CSR

our exposure to supply chain dis-

assessment framework. As of the

ruptions and compliance issues, we

time of writing this Report, the

have enhanced our supply chain

initiative had been successfully

risk management and taken a series

launched.

Common Goals and

of precautionary measures. As an

Responsible Practices

parency and emphasizing the

Guide Our Supplier

importance of corporate responsi-

Selection

Supplier Panel 2014. It gives all

Our CR vision requires that we work

buyers easy access to our company-

towards growing strong local roots

Aligned with our OneBT initiative

wide database of supplier risks.

in the communities where we operate

to increase efﬁciency, our Procure-

To verify the accuracy of our infor-

and at our manufacturing sites.

ment Strategy Plan 2020 aims to

mation, we conducted spot checks

Therefore, whenever possible, we

cultivate closer relationships with our

and 43 audits in 2013 and 2014.

work with local suppliers, a strategy

key suppliers while safeguarding

In the coming years, we plan to

which affords ﬁnancial beneﬁts

resilience and ﬂexibility in the supply

intensify our monitoring activities

and lowers environmental impact.

chain to buffer against possible

and will commission further third-

For example, in 2014 we won the

resource bottlenecks. To ensure that

party audits.

bid to produce 240 BOMBARDIER*

important step to increasing trans-

Sourcing Locally Beneﬁts the Community

bility, we released our Preferred

TRAXX* Africa locomotives as part

our goals are aligned, corporate responsibility criteria are essential

“We work very closely with

aspects of our supplier selection

Bombardier Transportation on prod-

process. These criteria are reﬂected

uct innovation and eco-design,

in our Supplier Code of Conduct,

which is increasingly important to

which forms the foundation of our

our end customers. Being involved

long-term relationships. It is based

in product development from the

on the principles of the United

beginning enables us to quickly and

Nations Global Compact and details

efﬁciently react to expectations

our expectations regarding legal

and deliver on them.”

of a complete renewal program for

compliance, labor conditions, health and safety, environmental perfor-

Alexander Tietz, Key Account Manager, Knorr-Bremse AG

mance, anti-corruption, business ethics, and government relations.

Our annual Supplier Day, held for

While we require that suppliers

over ten years, provides a forum for

adhere to our Code of Conduct,

suppliers from around the world to

we also support them in improving

share information and mitigate risks.

their own sustainability practices.

In 2013 and 2014, 240 of our key

Dr. Robert Wassmer, Chairman of the European Management Board of Knorr-Bremse Rail Systems, and Stefan Bräuherr, Head of Corporate Responsibility, Knorr-Bremse AG receive the Supplier Sustainability Award 2014.

SUPPLIERS

Transnet Freight Rail in South Africa. In our bid, we committed to building the locomotives locally and sourcing more than 60% of the contract value from local suppliers. We conducted training for Transnet Freight Rail employees and transferred expertise on products and processes. As a result, several South African suppliers were able to meet our high quality standards. We also were able to invest in local manufacturing sites and are building a new site on the outskirts of Johannesburg to serve as a hub for our operations, our local partners, and suppliers.

Empowering local suppliers provides beneďŹ ts for both our production of TRAXX locomotives and the community in South Africa.

605

Number of Master Vendors per Region in 2013

in total

475

Europe

North America

45 Asia (includes Middle East)

2 Africa

3 South America

1 Oceania

EMPLOYEES “Here at Bombardier Transportation, we work hand in hand in cross-cultural teams to deliver on our commitments.”

EMPLOYEES

OPPORTUNITIES FOR FORWARD-THINKING MINDS Our employees are our greatest asset and the foundation of our success. We strive to be a world-class employer in order to attract and retain the best talent worldwide in an increasingly competitive environment. Our internal improvement initiative, OneBT, launched in 2014, will help us to increase the efﬁciency and proﬁtability of our business. It will enhance the agility we need in order to enter different markets with robust platforms while continuing to provide the best opportunities for our employees to develop their full potential. This is our way forward.

Effective Programs to Recruit Top Talent

One of our time-tested programs to attract bright and motivated people is the Global Graduate Program, which prepares young talent with a global mindset for a future role

Recruiting top talent and maintaining a

at Bombardier Transportation. Since 2008,

dedicated, dynamic, and diverse workforce

more than 170 Global Graduates have

are crucial for our continued success every-

accepted challenging positions at our

where we do business. In response to the

business locations worldwide. As emerging

concerns of our stakeholders expressed

economies are growth-drivers for our busi-

in the company’s 2014 survey regarding a

ness, we are also expanding our presence

shortage of talented and skilled workers,

in these markets. In order to build local

we have established and expanded a number

communities and leverage local knowledge,

of programs to enhance our recruitment

we work closely with NGOs and universities

and development efforts.

such as Kasetsart University in Thailand to support the development of the rail engi-

The Global Employee Referral Program,

neering program. To date, we have hired

launched in November 2013, uses the knowl-

50 graduates through this program.

edge of our employees to identify great talent in their personal networks. This has

“Our students beneﬁt from Bombardier’s

helped us save time and costs associated

expertise in rail transportation through on-

with traditional recruitment efforts. Since

the-job training and special lectures from

2013, we have built more than 20 permanent

experts in the ﬁeld, especially on signaling

talent pools for our most critical roles.

and rolling stock technology.”

In 2014 we hired 45 employees from those pools.

Associate Professor Dr. Thanya Kiatiwat, Dean of the Faculty of Engineering, Kasetsart University, Thailand

Engaging with Our Employees We remain as committed as ever to maintaining high levels of employee engagement. Even though the 2014 employee engagement survey coincided with our restructuring announcement, we are proud to report that a total of 85% of our employees participated in the voluntary survey. While the 2014 results declined 5 percentage points in engagement and 1 percentage point in enablement compared to the previous year, for the most part The new batch of trainees in India joining the Young Leaders Program.

scores continue to exceed the global management consulting ﬁrm

In 2013, we launched our Young

managers to improve their talent-

Hay Group’s Manufacturing Norm.

Leaders Program in India. This

development skills. In 2014, we

The OneBT initiative will focus on

program provides comprehensive

launched the People Manager Pro-

achieving six Bombardier Trans-

on and off-the-job training over a

gram as a pilot and trained 100 em-

portation differentiating capabilities

month-long development sequence.

ployees in engaging, coaching,

and on improving employee

So far, we have recruited 55 gradu-

and developing their teams to their

engagement and enablement by

ates from leading engineering

greatest potential. The program

the end of 2015.

schools. This program, together

will now be implemented throughout

with other successful recruitment

our operations. Since its inception

and development programs will

in 2011, over 900 employees in

be expanded in coming years.

management and leadership posi-

through a Preventive

tions have completed the three-

Health & Safety

The Right Training for

day Making Great Leaders Program –

a Successful Career

sessions we offered at the senior

this is in addition to the training manager and director levels.

Our goal is to provide our employ-

Limiting Risk

Culture The health and safety of our employees and the responsible operation

ees with the best opportunities

Our Global Mobility Program and

of our sites are non-negotiable. We

for professional growth, and career

Bombardier Inc.’s Global Mobility

therefore adhere to international

development and training plays a

Policy also support employees

standards like the Occupational

key role in our operations. Despite

aspiring to work abroad. In 2014,

Health and Safety Assessment Series

increased cost containment meas-

at the Expatriate Management &

(OHSAS) 18001, the environmental

ures in the context of our OneBT

Mobility Awards, we were recog-

management system ISO 14001,

improvement program, we offered

nized for having the “Best Global

and the Eco-Management and Audit

our employees 700,000 hours of

Mobility Program in the Industrial/

Scheme (EMAS) to proactively limit

training in 2013 and 2014 to leverage

Energy Sector” for the Europe,

risk and track our performance in

their managerial and technical skills.

Middle East, and Africa region.

the areas of health, safety, and the

We support our employees and 28

environment (HSE).

EMPLOYEES

To emphasize the importance of

gated the incidents thoroughly and

our Berlin, Görlitz, and Kassel sites

HSE, Bombardier Inc. established

shared the results of those investiga-

made a clear statement about the

an HSE Council, which deﬁnes a

tions with the appropriate authorities.

importance of diversity and its

company-wide strategy, oversees

As a result, we have further reviewed

impact on business success.

performance, and reports to the

and improved the measures to

Board of Directors. Dedicated HSE

increase safety in all business seg-

One particular area where we aim to

teams support our sites to imple-

ments. Maintaining the highest

improve is gender diversity. In 2013,

ment the HSE roadmap. Our HSE

standards of health and safety prac-

we set a goal to increase the per-

policy is based on a preventive cul-

tices is not only an obligation at

centage of women in management

ture that recognizes and addresses

Bombardier, but a matter of respect

positions to 25% by 2018 (up from

risks before negative outcomes

for our employees and their families.

16% in 2014). To make Bombardier Transportation a more attractive

occur. To further improve HSE performance, a ﬁve-year roadmap with speciﬁc goals and actions was established in 2013. One year later,

Diversity as a Key Factor

employer for women, we created

for Long-term Success

(FEN) in 2008. Through this network,

the Female Engineering Network we provide training, mentoring,

several milestones, including the launch of an HSE leadership training

Bombardier values its diverse work-

and opportunities for collaboration

pilot program, were reached. In

force. The experience, skills, and

around the world. In December 2014,

October 2014, the third HSE Leader-

backgrounds of the employees,

the network had more than 300

ship Conference was held to foster

representing 120 nationalities, are a

members across 30 global sites.

an exchange of best practices and

key factor for our long-term busi-

To inspire the next generation of

lessons learned across all operations.

ness success. In 2013, Bombardier

female experts, FEN supports the

Transportation in Germany signed

“EnterTechnik” project in Berlin,

While we strive to reach zero occu-

the Charter of Diversity, a business

Germany, which prepares young

pational illnesses and injuries every

initiative supported by the local

women for technical professions

year, we regret to report that we

government. By participating in

and is promoted by the European

suffered three employee fatalities over

initiatives such as the German

Union and the German Federal

the last two years. We have investi-

Diversity Day 2014, management at

Ministry of Labor and Social Affairs.

Kassel management and employees ﬂy the ﬂag of diversity at 2014 Diversity Day in Germany.

COMMUNITIES “Even though we haven’t decided what career we want to pursue, the insight into a technical working environment at Bombardier was a great hands-on experience!”

COMMUNITIES

MAKING AN IMPACT IN OUR COMMUNITIES Supporting local initiatives in the communities where we work is something we are passionate about, and creating strong infrastructures is a prerequisite for our success. We want to be a responsible employer and reliable business partner and make an impact everywhere we do business.

Paradigm Shift toward Shared Value

Protecting the environment is at the core of our business. We support projects and initiatives that explore effective ways of protecting our natural living spaces. By

We have moved away from philanthropic

providing the best products and services,

donations and towards an impact-oriented

we are driving The Evolution of Mobility

strategy aligned with our core business

sustainably.

and values. Our company-wide 3E strategy focuses on education, environment, and

Entrepreneurship drives innovation and

entrepreneurship as we strive to build the

sustainable economic growth. We help

foundation for sustainable growth in the

young entrepreneurs develop their skills

communities in which we operate.

and launch their businesses, allowing them to become the independent business

We collaborate closely with our NGO part-

owners, customers, suppliers, and partners

ners to measure the success of our projects

of the future.

against speciﬁc key performance indicators and evaluate the positive impact of our

Overall, Bombardier Inc. has committed to

societal investments. By contributing the

contributing 1% of the previous year’s pre-tax

expertise of our employees in volunteering

earnings (EBT) to community involvement

initiatives we foster strong and long-lasting

projects, and we have made it our goal to

relationships with our local partners. This is

devote 80% of our worldwide ﬁnancial support

how we create shared value, for the com-

to the 3Es by 2015. In 2014, we allocated

munities and for our business. Educational

58% to initiatives that are aligned with the 3Es.

programs help strengthen the future of the

This reﬂects a robust positive trend and

region by developing a sustainable work-

shows an improvement over 2012, which saw

force and a strong infrastructure.

a 46% investment in 3E projects. 31

80 %

join the Saksham educational program promoting youth employ-

64 %

ment by providing practical life

58 %

35% 20 %

2011

2012

and Lives

and work skills. Bombardier Trans-

46%

2010

Rebuilding Schools

2013

2014

target 2015

Bombardier Transportation’s 3E-related spending in %

portation has supported this

In November 2013, Typhoon Haiyan

program since 2012 by partnering

devastated parts of Cebu, Philippines,

with Plan India, an NGO with a

where many of our local employees

strong reputation for its effective-

are raising families. In accordance

ness and governance. Since then,

with our 3E strategy, we raised a call

175 young adults between the

for employee donations and these

ages of 18 and 29 have received

funds were matched by Bombardier

vocational training and 119 were

Transportation for a total contribu-

Investing in Education

successfully employed in the retail

tion of US$125,000. Partnering with

to Integrate Youth in

and hospitality industries. Alka

the local branch of the non-proﬁt

is one of them. She comments:

organization Habitat for Humanity,

Local Job Markets

we helped fund the rebuilding of “Saksham has given me a life I

three schools in the storm-stricken

Business skills are the prerequisite

could only have dreamt of. I found

communities of Tapilon, Kawit, and

for economic well-being. Society in

a job allowing me to support my

Remigio. The donation strengthened

India faces, in particular, challenges

family and to continue my own

the bond between our company

in girls’ education and the under-

studies as well.”

and these communities as 4,500

developed vocational training ﬁeld.

children are now able to continue

For Alka, a young woman from a

Because of the program’s success,

their studies in a safe learning

disadvantaged family in West Delhi,

we are now considering expanding

environment, which contributes to

her ambition to be independent

the program to other production

a higher standard of living, both

has become reality. She was able to

sites in India as well.

today and in the future.

Young woman receiving her certiﬁcate, having completed the Saksham program.

COMMUNITIES

teer for a Bombardier-preferred cause or as part of a team-building initiative. “We are delighted to see the local industry taking social responsibility. Engaging in community projects such as Huerdenspringer+ supports the development of teenagers and offers perspectives for their future careers.” Stefanie Corogil, Project Leader, Mentoring Project Huerdenspringer+

Honoring the Founder’s Vision In 1965, the J. Armand Bombardier Foundation was established to provide support for communities in Canada, the home of Bombardier Inc. High school students from San Remigio National High School thanking Bombardier Transportation and Habitat for Humanity Philippines.

and its founder Joseph-Armand Bombardier. Since then, the foundation

Sharing Skills with Our Communities

the teens’ efforts to enter the job

has generously supported commu-

market. Today, the teenagers are

nity initiatives to improve healthcare

meeting with their mentors regularly

and education. In 2014, Bombardier

to discuss their ongoing job search.

Inc. contributed US$3.7 million to

Our employees are highly skilled

In 2015, we will expand the program

the foundation, which celebrates its

experts with profound professional

to allow more employees to volun-

50th anniversary in 2015.

knowledge, passion, and leadership abilities. These qualities make them great assets not only for our company, but also for the communities in which we operate. Bombardier Inc. has therefore set the goal of establishing skills-based volunteering projects in our key markets by 2020. One example is the Huerdenspringer+ (hurdle jumper), a Berlin-based project carried out in partnership with the local NGO UNIONHILFSWERK. Last year, nine employees from our Berlin and Hennigsdorf sites qualiﬁed to serve as mentors for teenagers, mainly from disadvantaged backgrounds, and support

Bombardier Transportation volunteers at Berlin headquarters getting their mentor certiﬁcation.

SHAREHOLDERS, INVESTORS, AND ANALYSTS “Companies that achieve consistent ﬁnancial performance by demonstrating responsible business practices are the investor’s preferred choice.”

SHAREHOLDERS, INVESTORS, AND ANALYSTS

SHARING SUCCESS Bombardier Inc. is headquartered in Montreal, Canada, has business operations around the world, and is listed on the Toronto Stock Exchange. Bombardier Transportation, based in Berlin, is a business segment of Bombardier Inc. and covers the full spectrum of rail solutions. As a global company, we have a responsibility for the markets and communities we impact. Conducting our business in a sustainable and ethical manner is thus imperative for earning the trust of our shareholders and other stakeholders worldwide.

A New Structure and Solid Financials Position Us for Future Growth

In 2014, revenues for our rail activities totaled US$9.6 billion, compared to US$8.8 billion in 2013. Our EBIT and EBIT margin before special items amounted to US$486 million and 5.1%, compared to US$505 million and

Trends like urbanization, population growth,

5.8% respectively in 2013. Both increased

and climate change are strengthening

revenues and greater order intake demonstrate

interest in public transportation solutions.

that we are developing the right products

However, market dynamics alone will not

and pursuing the right opportunities. New

guarantee sustainable growth. In order to

commissions were concluded across all

adapt our business to these changing con-

segments and geographies, e.g. a US$2.7

ditions we launched our internal improvement

billion contract with the State of Queensland,

initiative OneBT in 2014. This organizational

Australia, a US$2.1 billion order from Trans-

shift and strong ﬁnancial discipline enable

port for London, U.K., and a US$1.2 billion

us to increase efﬁciency and proﬁtability

order from Transnet Freight Rail, South Africa.

while remaining innovative and competitive.

These developments demonstrate our customers’ continued conﬁdence in our products and in our commitment to innovation. 35

fraud, dishonesty, or misconduct.

External Charters & Policies that Guide

So far, we have not had to make

Our CR Approach

use of the policy. Aside from providing training

United Nations Global Compact International Association of Public Transport (UITP): Charter on Sustainable Development International Network for Environmental Management (INEM) Charter (in Germany represented through B.A.U.M.) Organization for Economic Co-operation and Development: Guidelines for Multinational Enterprises German Railway Industry Association (VDB): Code of Conduct

for new employees and issuing semi-annual ethics newsletters, in 2014 Bombardier Inc. launched the ﬁrst two of six interactive learning modules, which were jointly developed with UN Global Compact. The ﬁrst module was completed by 71% of our employees in the Transportation segment while the second module, still

Corporate Governance

The Board of Directors establishes

in progress, has been completed

Strengthened through

policies and priorities at the

by 56% of our Transportation

highest level of the organization.

employees.

Guidelines and Training

Bombardier Inc.’s Ethics Advisory Council (BEAC) is responsible

Bombardier Inc. has instituted a

We have established a range of

for the implementation of the pol-

Supplier Code of Conduct, which

explicit guidelines that deﬁne how

icies and refers violations to the

sets forth speciﬁc principles by

we protect and support human

President and CEO or to the Board

which Bombardier expects all its

rights in our operations. Bombardier

of Directors. Starting at the

suppliers and, in turn, the sup-

Inc. is a signatory to the United

director level, Bombardier Inc.’s

pliers’ business partners and afﬁl-

Nations Global Compact and has

management is required to renew

iates to conduct their business.

embedded the Compact’s ten

its commitment to the Code

principles in our Code of Ethics and

of Ethics and Business Conduct

The anti-corruption training will

Business Conduct, providing clear

every year and acknowledges

be intensiﬁed in 2015 and will include

guidelines for all employees regard-

with its signature that it follows

additional specialized training

ing human rights, labor relations,

the guidelines and has no knowl-

sessions for our sales, supply chain,

environmental protection, correct

edge of any violations of the

and contracts teams.

payments, and anti-corruption in

Code. We offer our stakeholders

their relationships with customers,

and third parties multiple chan-

suppliers, colleagues, and commu-

nels to report suspected breaches

nities.

of the Code, including an anony-

Managing Risk at Every Stage and Business Level

mous reporting system. In 2014, Corporate governance is an impor-

Bombardier Inc. received 83 com-

As a leading global business in

tant part of our corporate respon-

plaints regarding compliance

the transportation and aerospace

sibility efforts. Many of our company-

issues, but after further investiga-

industries, Bombardier Inc. faces

wide initiatives have been guided

tion, none of them proved to be

certain risks. They include both inter-

by strong corporate governance

signiﬁcant violations.

nal factors such as supply chain

policies for years. Nevertheless, we

disruption and occupational health

have undertaken special efforts to

In 2013, Bombardier Inc. imple-

and safety and external factors like

strengthen this area further:

mented a policy that allows

political instability and volatile fuel

bonuses and other incentives to

prices. To minimize the potential

be recovered in the event of

impact of such factors, we make risk

SHAREHOLDERS, INVESTORS, AND ANALYSTS

management an integral part of our

Bombardier Inc. has been included

Further recognitions include a list-

planning activities and decision-

in the Dow Jones Sustainability

ing in the Global Compact 100

making processes. Our risk manage-

Index and the Dow Jones North

Stock Index and the award of Prime

ment tools include internal and

America Sustainability Index for

status by oekom research, a rating

external audits, information systems

eight consecutive years and has

agency that provides guidance

and compliance processes, risk

been named industry leader in

on sustainable investing.

analysis, and stakeholder engage-

its respective category for the third

ment. These measures are carefully

year in a row.

designed with all our ﬁnancial,

While we at Bombardier Transportation as a business segment of

operational, and strategic goals in

In the Corporate Knights’ 2014

Bombardier Inc. share these rank-

mind.

Global 100 Index, Bombardier Inc.

ings and awards with our parent

was listed as the 24th most sus-

company, our business has also

Our Sustainability

tainable company in the world

been recognized separately for its

and came in third in the ranking

ethical conduct on several occa-

Efforts Receive

of Canada’s Best 50 Corporate

sions. In the category of companies

International

Citizens in 2014.

with more than 5,000 employees,

Recognition

We have received an A-list ranking

for the Corporate Social Responsi-

we were among the ﬁve ﬁnalists in the Carbon Disclosure Project of

bility Award of the German Federal

Bombardier Inc. has been recognized

the Climate Performance Leader-

Government in 2014. Bombardier

for its responsible business leader-

ship Index 2014, making us one of

Transportation was also honored

ship and has been included in several

187 companies on the Toronto

with the Gold recognition level for

sustainability indices. Being part

Stock Exchange that has received

its environmental and social per-

of these indices is evidence of our

an A grade for its performance

formance by the CSR assessment

already highly ethical practices,

in mitigating climate change.

platform EcoVadis in 2013.

but also serves as an incentive to continuously improve our corporate governance and sustainability activities.

Our Major Rankings and Ratings

PERFORMANCE DATA

We report in a transparent and fact-based manner about

Our environmental performance evidences further note-

our corporate responsibility performance, guided by

worthy reductions of energy consumption, greenhouse

the Global Reporting Initiative (GRI). The following ta-

gas (GHG) emissions, water withdrawn, and waste. Though

bles list important key ﬁgures for the years 2012 to

our worked hours increased by 8% from 2013 to 2014,

2014. Some ﬁgures have been rounded, which may result

we achieved reductions in our environmental footprint,

in slight deviations from the totals stated.

in fact by –6% energy consumption, –7% GHG emissions, –6% water withdrawn, –3% non-hazardous waste, and –13% hazardous waste. This is a result of ongoing efforts at

EMPLOYEES

2014

2013

2012

our sites, such as the long-term energy saving initiative in

Number of employees (a)

39,716

38,529

36,020

Hennigsdorf that targets changes in employees’ behavior.

Active and inactive (%) (b) (c)

Contractual (%) (d)

26,372

25,749

25,001

ENVIRONMENT (M)

2014

2013

2012

1.59

1.69

1.65

0.65

0.71

0.69

Natural gas (non-renewable) (106 GJ)

0.63

0.69

0.62

Kerosene (non-renewable) (106 GJ)

0.01

Number of employees by region in Europe in Asia-Paciﬁc

3,395

3,052

2,872

Total energy consumption (direct and indirect) (millions of gigajoules or 106 GJ) (n) (o)

in North America

9,026

8,895

7,387

Total direct energy consumption (106 GJ) (n) (o) (p)

in other regions

923

833

760

Number of employees by level in senior leadership positions (e)

Other non-renewable energy (direct) (106 GJ)

0.02

0.01

0.07

in management positions (f)

3,204

3,112

3,008

Proportion of direct renewable energy (%) (r)

Less than 1%

0.94

0.98

0.96

Total indirect energy consumption (106 GJ ) (n) (o) (q)

Women in workforce (active & inactive) (%) in senior leadership positions (%) (e)

Hot water (106 GJ)

0.20

0.22

0.23

in management positions (%) (f)

Steam (106 GJ )

0.05

0.08

Number of new employee hires (g)

2,961

2,976

3,118

Electricity (106 GJ )

0.69

0.68

0.65

New hires – women (%)

Electricity from renewable sources (106 GJ ) (s)

0.03

0.05

0.10

118.20

127.42

124.24

Employee turnover rate (%) (h)

2.4

3.1

Total GHG emissions (direct and indirect) (thousands of tons of CO2-equivalent or 103 tCO2e) (n) (o)

Turnover rate – new hires (%)

4.2

3.9

Direct (103 tCO2e) (r) (p)

38.99

41.95

42.01

Turnover rate – women (%)

3.7

4.7

4.2

Indirect (103 tCO2e) (s) (q)

79.20

85.47

82.23

High potentials turnover rate (%)

4.5

3.5

3.6

Emissions of ozone-depleting substances (% of total GHG) 0.2

0.1

1.1

Number of employee citizenships (i)

120

113

105

Total water withdrawn (millions of cubic meters) (o)

0.50

0.53

0.59

Employees covered by collective bargaining agreements (%)

Municipal / water utility withdrawal (%)

Employee development

Total waste generated (hazardous and non-hazardous) (thousands of tons) (o)

32.14

33.46

34.98

High potential talent pool (%) (j)

2.7

2.2

Hazardous waste (103 tons)

2.98

3.44

3.35

Women in the high potential talent pool (%)

Non-hazardous waste (103 tons)

29.15

30.02

31.64

2.46

3.06

3.39

90%

88%

More than 85%

Employee engagement (%) (k)

Employee enablement (%) (l)

Waste to landﬁll (hazardous and non-hazardous) (103 tons) Valorized waste (hazardous and non-hazardous) (% of total waste) (t)

PERFORMANCE DATA

Following a consumption inventory, we also optimized facility management processes at Hennigsdorf and shut

(a) The total number of employees represents the sum of all active employees, inactive employees, and contractual employees.

down several oversized air compressors.

(b) Active includes employees that are permanent full-time, permanent part-time, temporary full-time, temporary part-time, and paid apprentices.

Our long-term goal is to achieve zero occupational

(c) Inactive includes employees on short-term leave, maternity and parental leave, and other long-term leave including long-term disability.

health and safety-related accidents. Currently, our acci-

(d) Contractual employees include consultants and agency-outsourced employees.

dent frequency remains stable at an industry-leading

(e) Senior leadership positions are deﬁned as direct reports to the Transportation President and COO.

low level. Most regrettably, we suffered two employee fatalities in 2014 and one each in 2013 and 2012. As

(f) Management positions are deﬁned as manager and above. (g) New hire is a measure of permanent employees (active and inactive) hired externally within the reporting period.

maintaining highest standards of health and safety at our sites is a non-negotiable priority, we have correspondingly reviewed and improved related measures in all business segments.

(h) Turnover measures the percentage of employee turnover explained by voluntary departures (employee-initiated terminations). (i) Number of different citizenships registered for all employees included in the employed workforce at the end of the reporting period. (j) The percentage of employees identiﬁed as part of the high potential (HP) talent pool. (k) The percentage of respondents who have answered favorably or very favorably to questions within the engagement dimension, which measures employee commitment and discretionary effort. (l) The percentage of respondents who have answered favorably or very favorably to questions within the enablement dimension, which measures role optimization and level of support in the environment.

HEALTH & SAFETY

2014

2013

2012

(m) The scope of our reported environmental and energy data includes: buildings we own or lease long term and manage as the sole tenant, with more than 4,600 square meters (50,000 square feet) of conditioned space; sites having 150 employees or more; sites that are considered primary production/operation and service facilities, Group headquarters; and joint ventures where we have operational control (where we own more than 50% of voting shares).

Accident frequency (without restricted duty) (Injury rate) (u)

0.4

0.5

0.4

(n) Some of this data has been third-party veriﬁed.

in Europe

0.5

0.7

0.5

(o) Some of this environmental data has been third-party veriﬁed. The veriﬁcation covers sites participating in the European Union Eco-Management and Audit Scheme (EMAS).

in Asia-Paciﬁc

0.1

0.2

in North America

0.1

0.2

0.3

in other regions

0.4

0.8

Accident severity (without restricted duty) (Lost day rate) (v)

in Europe

in Asia-Paciﬁc

in North America

in other regions

Number of work-related fatalities (employees and contractors)

Incident rate (w)

1.5

1.4

in Europe

1.1

1.3

in Asia-Paciﬁc

0.7

0.5

in North America

2.8

2.7

in other regions

2.9

2.5

1.0

Percentage of total workforce represented in formal joint 90 management-worker health & safety committees (%)

(p) Direct energy/emissions are from sources that are owned or controlled by the company. (q) Indirect energy/emissions result from company activities but are generated at sources owned or controlled by another organization. This relates mainly to electricity. (r) Direct renewable resources are capable of being replenished within a short time through ecological cycles, as opposed to resources such as minerals, metals, oils, gas, and coal that do not renew in short time periods. (s) Indirect renewable electricity covers consumption from Quebec, Belgium, and Sweden. (t) Valorized waste refers to hazardous and non-hazardous waste which has been redirected to a process that reuses, recycles, composts, and combusts the waste into useful products or sources of energy. The number reported is the percentage of valorized waste as compared to our total waste generated (including both hazardous and non-hazardous). (u) The accident frequency rate measures the number of accidents that had one or more lost days, excluding restricted duty days, expressed per 200,000 hours worked. (v) The accident severity rate is the number of lost days expressed per 200,000 hours worked. The total number of lost days includes days away from work and excludes days in restricted duty. (w) The incident rate is the number of recordable cases, expressed per 200,000 hours worked. The total number of recordable incidents includes: a. The total number of work-related fatalities b. The total number of lost time accidents cases (excluding restricted duty) c. The total number of restricted duty cases d. The total number of occupational sickness and disease cases (excluding restricted duty) e. The total number of occupational sickness and disease restricted duty cases f. The total number of medical treatment

ABOUT THIS REPORT

Report Content

information currently available, there

(CASRA) function conducted an

is a risk that they may not be accu-

audit of our CR Report’s conformity

rate. The forward-looking state-

with the GRI principles, the effective-

ments set forth herein reflect our

ness of the processes and systems

Performance data in the Bombardier

expectations as of the date of pub-

we use to report CR data, and the

Transportation Corporate Respon-

lishing this Report and are subject

reliability and quality of our per-

sibility Report summarizes corporate

to change after such date. Unless

formance indicators. Totally indepen-

responsibility information for

otherwise required by applicable

dent from our business entities,

Bombardier Transportation only

securities laws, we expressly dis-

CASRA can be regarded as a second-

and covers the period from January

claim any intention and assume no

party veriﬁer. It applied recognized

1, 2013 to December 31, 2014. Finan-

obligation to update or revise any

standards such as AA 1000 and

cial information is given in U.S.

forward-looking statements, whether

ISAE 3000 to conduct the audit.

dollars, unless otherwise specified.

as a result of new information, future

We have continued to deﬁne and

For more detailed information

events, or otherwise. The forward-

implement action plans to improve

regarding our ﬁnancial disclosures

looking statements contained in this

the quality of data. For HSE data,

and explanations for the year

Report are expressly qualiﬁed by

this has included a standardized

ended December 31, 2014, please

this cautionary statement.

procedure to report data to our

see the Bombardier Inc. Financial

central data management system.

Report 2014.

Data

The content in the Report is chieﬂy

Veriﬁcation

guided by the Bombardier Inc. 2014 materiality assessment, which was

The information provided for our

conducted through a survey and

environmental indicators is only

one-on-one conversations with

partially veriﬁed by an external party.

employees and a range of external

Energy and greenhouse gas (GHG)

stakeholders. We want this Report

emissions data from our Belfast, U.K.,

to be a key element of our ongoing

site is veriﬁed by external parties

stakeholder engagement and wel-

under the European Union Emissions

come your feedback and questions.

Trading Scheme (EU ETS), which

Please share your thoughts by con-

includes BSI Assurance UK Ltd.,

tacting us at csr@bombardier.com.

located at Kitemark Court, Davy Avenue, Knowlhill, Milton Keynes,

Forward-looking

Buckinghamshire, MK5 8PP.

Statements

In addition, seven German sites, as well as our sites in Matranovak

By their nature, forward-looking

(Hungary), Ceska Lipa (Czech

statements require us to make

Republic), Vienna (Austria), Vado

assumptions and are subject to

Ligure (Italy), and the Wroclaw site

important known and unknown

in Poland receive annual external

risks and uncertainties, which may

verification of all environmental

cause our actual results in future

data under the EU Eco-Management

periods to differ materially from

and Audit Scheme (EMAS).

forecasted results. While we consider our assumptions to be reason-

In 2011 and 2013, our Corporate

able and appropriate based on

Audit Services and Risk Assessment

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