More sustainable

Enterprises affect the development of societies in which they operate. Therefore MøllerGruppen and other businesses have a responsibility that goes beyond the profitable value creation. For MøllerGruppen Corporate Social Responsibility (CSR) means to run the group into a more sustainable development.

We have made CSR an integral part of the MøllerGruppen business, based on our core values Honest and Trustworthy, Pro-active, Open-minded and Caring and Clear. Our work with the environment and corporate social responsibility is based on the recognition of the industry's basic obligation to conduct its business in a sustainable manner, with respect for people and the environment.

MøllerGruppen has, for several years, reported on environment and CSR as part of the annual report. In 2011, MøllerGruppen used for the first time the Global Reporting Initiative (GRI) format for reporting corporate social responsibility commitment. This was continued in 2012. For 2013, 2014 and 2015, we have chosen to present this work in a separate CSR Report.

The purpose of the GRI is to make reporting on economic, environmental and social performance as widespread as the common financial reporting is today. The network is affiliated with the United Nations through status as a cooperative institution with the UN environmental program UNEP.

MøllerGruppen has also joined the UN Global Compact and supports the Global Compact's ten principles. By working with good attitudes and targeted improvements the activities from MøllerGruppen shall help to promote human rights, good labour and environmental standards and zero tolerance for corruption.

Automotive business in MøllerGruppen has grown considerably over the last 10 years, especially in Sweden and the Baltic States. Efforts to integrate new operations have been intensified significantly. This is a demanding and lengthy process when the aim is to build our culture and our values into every part. In recent years, deliberately and clear efforts have been made to move our corporate social responsibility from having the stamp of philanthropy to really become an integral part of what we're doing.

Corporate Social responsibility Report 2015

Employees

MøllerGruppen works continuously and systematically with the environment and to monitor and follow up how employees are, how they make use of their skills and are followed up. This is measured through an annual employee survey.

It was not implemented any employee survey in 2015. After three years of the same survey and consistently excellent results, decided Corporate Management, following the recommendation of HR, to take a short break and start working on a new employee survey that will come in 2016.

At the end of 2015, the total number of employees in MøllerGruppen is 4107 - an increase of 181 over the year. Sweden had 652 employees, the three Baltic countries totaling 649 and in Norway there are 2806 employees.

There is a cultural diversity in the MøllerGruppen partly through ownership in Estonia, Latvia, Lithuania and Sweden, but also in the many European nationalities that are represented in the service market in Norway. Here we find employees from many different nations. It has not been necessary to take any special measures to prevent discrimination and unfair treatment in our company.

VALUES AND CULTURE
The core values of MøllerGruppen are central to the company's corporate culture and important guidelines for both managers and employees. It is about living up to the founder Harald A. Møller's eternal question motto: "It pays to keep its path clean." The value base contributes to positive attitudes and actions that provide positive experiences for both colleagues and customers. The four core values of MøllerGruppen are:

HONEST AND TRUSTWORTHY – The basis of our thoughts and attitudes
PRO-ACTIVE - Actions and their accomplishment
OPEN MINDED AND CARING - Relations and resources
CLEAR – Objectives and direction

The ethics that our values are based on has been the platform for our growth, development and work since the company was founded. The value base is strong among our employees, and we are work every day to make it just as relevant in Sweden, Estonia, Lithuania, Latvia as it is in Norway. We want it to be challenging, inspiring and fun to work in MøllerGruppen! The value Basis contributes to good attitudes and actions that provide positive experiences for both colleagues and clients.

We have recently been working to anchor the core values of the organization through films shown at management meetings and for new employees, through discussion in all management development and talent programs, and not least by showing the basic values of our blue posters everywhere in the company. Ever since Harald A. Moller founded the company in 1936, our values have been a mainstay of the company. After all these years, the values are still as relevant and important to us.

CODE OF CONDUCT
In a world with increasingly rapid changes in terms of the risks we face, we recognise the need for increased focus on compliance – i.e. ensuring that all our activities are in accordance with laws, regulations and ethical guidelines. MøllerGruppen has therefore drawn up a Code of Conduct that clarifies this and implemented internal processes to spread the word. We have also established clear routines for whistle-blowing. If an employee suspects “Being honest and trustworthy, clear, proactive, and open-minded and caring is demanding. It’s about confidence, long-term thinking and value creation.” Harald Møller, Chairman of the Board and owner of MøllerGruppen AS Employees or witnesses any kind of wrong-doing, it is important that they report the matter. We have also introduced internal auditing. Through annual audits by an auditing company, we check that procedures are being followed and identify any instances of non-compliance.

Read more in the CSR Report

Society

The four values Honest and Trustworthy, Pro-active, Open Minded and Caring and Clear has since its founding been the platform for our work, development and growth.

The value base is strong among our employees and is equally relevant in Sweden, Estonia, Lithuania and Latvia, as in Norway. The value Caring has a special place and means for us to care about employees, society, customers and the environment - be generous, spacious and inclusive.

UN Global Compact
MøllerGruppen has justed joined the UN Global Compact and we support the Global Compact's ten principles. By working with good attitudes and targeted improvements, the MøllerGruppen activities will help to promote human rights, good labour and environmental standards and zero tolerance for corruption. The company's growth in recent years, even beyond the borders, is corresponding to a further focus around our anti-corruption efforts. This work has been initiated and will be continued in 2014.

Partners
As part of our corporate social responsibility, we have chosen to support organizations and initiatives that contribute to a more generous and better society. The project of The Church City Mission, "Well-earned salary" (Lønn som fortjent) and MENTOR, SOS Children's Villages work in the Baltic States, the Red Cross initiative "Vacation for everyone" (Ferie for alle) and Christian Radich, are all partners we are proud to work with.

"Well-earned salary", under the auspices of The Church City Mission, gives addicts a job to go to and the salary is paid in cash the same day. Some of them make glass angels. MøllerGruppen has supported this project since 2007 through the purchase of 5000 glass angels. The parties have now extended its existing agreement and the new agreement includes the purchase of up to 10,000 hanging glass angels per year. The glass angels will be used as gifts for new car buyers across the country. We hope that through these efforts we can help to make glass angels even more familiar and create more jobs.

MøllerGruppen is the main sponsor of SOS Children's Villages. The agreement contributes to SOS Children's Villages work for vulnerable children in the three Baltic countries. The contribution from MøllerGruppen goes for two main purposes. Half of the funds will go to children living in children's villages either because they are orphans or because their parents are unable to care for them, while the rest will be used preventively to help families in their communities with housing and various measures to prevent that families disintegrate. Our employees contribute with volunteer efforts on selected projects. Moller Auto Baltic has also facilitated so that youths from the SOS Children's Villages can get a summer job and vocational education.

The MøllerGruppen Baltic Foundation was founded in 2014 and wants to focus on children and youth by supporting projects and initiatives intended to help people who for different reasons live under difficult conditions in Estonia, Latvia and Lithuania. The Fund intends to contribute to improving the humanitarian situation, create a better and safer life and contribute to improved learning for children and youth. The foundation supports yearly minimum three projects where each project may receive financial support up to 15,000 Euro.The reason for establishing Møllergruppen Baltic Foundation is MøllerGruppen's involvement as main sponsor of the SOS Children's Villages in the Baltics.

"Vacation for everyone" provides parents and children from families with low incomes the opportunity to one week's holiday in the school holidays at one of the Red Cross ' holiday camps. The group has supported this project financially since 2007, and 43 employees have participated as volunteers in more than 50 holidays. This has contributed to that more than 8000 children and parents have been given a week's holiday.

MENTOR 
MøllerGruppen and the Red Cross have also joined forces on a mentoring project for young people who need a like-minded person to help motivate them. MENTOR is a pilot project for young people aged between 13 and 19 who want a role model and mentor – or simply someone who will listen to their wishes, interests and needs. The mentors are volunteers over the age of 22. MENTOR provides vulnerable young people with an opportunity to further develop their resources and aptitudes on their own terms. The mentor and mentee draw up their own agenda and decide what to spend their time on, based on the young person’s wishes. They meet for up to four hours a week. 

Since 2000, MøllerGruppen has also helped to preserve the Norwegian maritime heritage through the use and financial support for the full rigged ship Christian Radich. The agreement gives employees the opportunity to participate in a number of voyages with Christian Radich and the ship is also an important part of employees 17 May celebration in Oslo, the national day in Norway. Each year between 500 and 600 employees are on board national day. The agreement has now been renewed for another three years (2016).

After the Royal Norwegian Navy’s schools terminated their agreement with Christian Radich, MøllerGruppen pledged to provide additional support if the foundation was able to find alternative employment during the winter months. This was achieved, and additional support has been provided. From September 2015, Christian Radich became a training ship for third-year students taking maritime studies at upper secondary level and is now sailing with 66 pupils and five cadets. During Society 18 the summer, Christian Radich will operate as usual taking part in regattas and offering fjord tours, school cruises and summer cruises. The ship is thus now operating all year round.

Environment

Our ambition is to be perceived as a leader at the environmental area in the automotive industry. We want to be a resource for automotive and environmental issues and facilitate customers to make good environmental choices.

Both within the organization and externally MøllerGruppen has for several years focused on environment; through our product strategies, certification schemes, training and in conversations with society, customers, partners and factories. We work with the environmental organization Zero and our retailers in Norway are certified as Miljøfyrtårn (Environmental Lighthouse).

Our business should have the least possible negative impact on the environment. Harald A. Møller AS, Norway's biggest car importer, is certified to ISO 14001. Together with the Volkswagen Group, we seek to develop innovative and sustainable solutions that provide benefits for all.

CARS AND TECHNOLOGY
In Norway, CO2 emissions have dropped sharply over the past year, largely due to the increased car sales of zero-emission vehicles, but also the composition of the fleet changes in a positive direction, though slowly. A year ago, 35.6 per cent of new cars had CO2 emissions between 1 and 120 g/km. At last year's final (2013) this figure had risen to 38.1 per cent.

Zero emission cars has increased its share from 2.9 to 5.6 percent, which of course is of great importance for the total emission. Today, it is the electric cars that account for this positive trend.

The development of our brands
Our low emission models have gained a good knowledge and position in the market and are now among the most popular models. CO2 emissions from our brands are significantly reduced over the last 10 years. In 2004 the average CO2 emissions from Volkswagen was at 167 grams per kilometer. In 2013, the corresponding figure is 124 grams, a reduction of over 25 percent.

Average emissions of CO2 per km


In close collaboration with the Norwegian Automobile Importers Association, MøllerGruppen has contributed to a common standard for an environmental classification of cars in Norway. The classification is currently used in all marketing of our cars.

TAKE A LEAD IN RECHARGABLE CARS
MøllerGruppen is actively working to establish a more environmental friendly car fleet in Norway. The vision is to emerge as an industry leader in environmental issues by establishing a leadership in rechargeable vehicles. We had a Norwegian launch of the Volkswagen e-up! in November 2013. The fully electric e -up! had a fantastic start and was in under two months the third best-selling electric car with over 580 registered cars. In 2014, we have launched the e - Golf - the electric version of the bestselling Golf - and also for this model the reception has been terrific.

The electric vehicle market in Norway has in just two years gone from being a niche market to become a very significant part of the new car market. There are a number of benefits to buy and drive electric vehicles today. MøllerGruppen has established a nationwide network of dealers in electric cars where 62 of the 72 Volkswagen dealers sell electric vehicles and we are actively working for a faster introduction of new technology and a faster replacement of the vehicle fleet.

VOLKSWAGEN GROUP WILL BE WORLD LEADING
In the coming years it is expected that the number of cars worldwide will rise from about 1 billion to around 1.3 billion. Volkswagen Group has now embarked on a fundamental ecological restructuring program with the ambition to become the world's leading sustainable automaker by 2018.

One of the goals is to improve the environmental credentials of its production by 25 percent. To achieve this goal, the company shall cut energy and water consumption, emissions and waste, by 25 percent compared with the 2010 level. The group will also channel over two thirds of its investment program of 50.2 billion euro directly or indirectly into the development of increasingly more effective and safer cars, new drive systems and environmentally friendly production processes at its plants around the world.

Volkswagen has already achieved some important improvements on the way to its self-imposed environmental management. For example, CO2 emissions from the production process between 2010 and 2012 decreased by approximately 129 kg per vehicle produced, while metallic production waste was reduced by more than 28 kg per vehicle.

Average CO2 emissions from Volkswagen Group's sales in Europe have been greatly reduced in recent years. From 2008 to 2012, emissions were reduced from 159 g CO2/km to 134g CO2/km. This represents a decrease of approximately 15.7 percent.

Some more environmental goals of the Volkswagen Group:
• CO2 emissions throughout its European new car park will be below 120 g/km by 2015.
• The group should cut average CO2 emissions of its European new car park to 95 g/km by 2020.
• Approximately 600 million euros will be invested by 2016 in renewable energy.
(Source: Volkswagen Aktiengesellschaft , Sustainability Report 2012)

CERTIFICATIONS
Møller Bil is the largest and first dealership chain that has certified all of its 40 dealers, nine collision damage repair shops and its headquarter in Oslo according to the Norwegian Miljøfyrtårn standard. Environmental work at the importer Harald A. Møller was formalized with an approved ISO 14001 - certificate in December 2011. This includes office operations at Frysja, the central warehouse for car parts and accessories in Skedsmo kommune and the import facility for new cars at Bekkelaget in Oslo.

As a follow up of environmental certification according to ISO 14001 for Harald A. Møller AS, we also have become part of a pilot project by Volkswagen AG to integrate ISO 14001 into the factory's "Connective Certification System". In this way, all our certified dealers are given the opportunity to be certified according to ISO 14001 as well as ISO 9001. Møller Bil Sweden was quick to environmental certify all of its 10 dealers in Sweden by the ISO 14001 standard. Efforts to certify the dealership chain in the Baltics is not yet initiated.

WASTE - RECYCLING OF CARS
The Norwegian car industry has through Autoretur developed a very good tool for the recovery and recycling of scrapped cars. Autoretur recycles each year approximately 125,000 vehicles and almost 95 % of the cars weight is recycled or converted into energy. It is the car importers that are responsible for the collection and recycling of discarded cars.

The savings in recycling that Autoretur represents corresponds to 137,000 tons of CO2. It is equivalent to the annual emissions from 60,000 cars (ref. Vista Analysis). It is the Environmental Directorate that controls the Autoretur.

WASTE DISPOSAL IN NORWAY
As part of our environmental effort, MøllerGruppen has made an agreement with the company Ragn-sells on waste from our operations in Norway. Total waste volume for 2013 was 3,100 tons. This is a reduction compared to 2012 by 3.4 percent or 108 tons. Sorted proportion of waste was 77 percent. This was an improvement from 2012 where the separation rate was 76 percent.

The most significant factions are:

Cardboard and paper                            14%
Wood 5 %
Metals 19%
Plastic 4%
Oil and fuel 20 %


WASTE DISPOSAL IN SWEDEN
Møller Bil Sweden has waste agreements with the companies IL Recycling and NEMAX, where the latter company handles dangerous waste like aerosols, airbags, batteries, electronic waste, glycol, fluorescent tubes, solvent, oil filters, plastic packaging etc.

In 2013 Møller Bil Sweden trained 205 employees in waste management and sorting. The program has included information about Miljöbalken and Avfallsförordningen (law) that are basic rules for all businesses.

By 2013, work that looks at the procurement and use of chemicals will be initiated. The work will continue in 2014 in order to ensure a good management of the use of chemicals in the damage repair shops.

ENERGY MANAGEMENT IN MØLLERGRUPPEN
Environmental concerns are also firmly rooted in MøllerGruppen Real Estate through longstanding commitment to energy efficiency measures. Through a project supported by Enova there has since 2009 been saved 7.5 GWh/year. This is achieved by training the operating personnel in energy-efficient operation and by investments in profitable energy efficiency measures.

MøllerGruppen Real Estate wants to establish energy monitoring for their entire portfolio. As part of this ambition, we have now reached an agreement with the company ESAVE about energy monitoring to ensure efficient use of energy.

The annual energy reduction is equivalent to the energy use of 375 houses (energy consumption 20 000 kWh/year) or 34,883 m2 office building (energy consumption of 215 kWh/m2 year). Or to put it in another way: The total energy consumption in MøllerGruppen in 2013 was around 42 GWh. Without the implementation of any of the measures, the energy consumption in 2013 would have been 7, 5 GWh higher, ie approximately 50 GWh.
Efforts to optimize energy use continue through measures in both existing and new buildings.

ENERGY WORK IN MØLLER BIL SWEDEN
It was in 2013 completed EcoDriving training where about 50 percent of our employees participated. EcoDriving is an education where you learn to drive economically while preserving the environment.

On the energy side, Møller Bil Sweden has for several years conducted an energy saving plan with the company ÅF Infrastructure. Møller Bil will in the future use ESAVE, the same system used in Norway, and set energy targets for each retailer.

MØLLER BIL SKADESENTER ROMERIKE
(MØLLER BIL COLLISION DAMAGE REPAIR SHOP ROMERIKE)
The new Møller Bil collision damage repair shop opened in 2013 and is classified as the first passive house in the industry. A passive house is a building that uses less energy for heating compared to conventional houses. Passive House standard includes requirements in terms of heat loss, heating demand, cooling demand, energy demand for lighting and energy supply, and that 60 percent of the building's energy demand for heating is covered by renewable sources. Car wash products are all Swan-labeled products and it is invested in an own treatment systems for all surface water from the plant.


MØLLER BIL KLARGJØRING
(MØLLER CAR PREPARATION)
The main tasks of this department is equipment installation and technical and cosmetic treatment of all cars entering the country. In 2009 Møller Bil Klargjøring invested in a new cleaning and preparation plant. Before this investment, water consumption per vehicle was about 180 liters. Now the water use per car prepared is 28 liters. Chemical consumption during the same period declined from 1.9 liters per car on average to the current level of 0.8 liters.

Møller Bil Klargjøring is performing missions for all 43 retailers in MøllerGruppen. The 43 retailers account for 60 percent of the total for the four brands. Møller Bil Klargjøring is also Miljøfyrtårn - certified. In 2013 they clarified 24,678 cars.

Quality and Emergency

CERTIFICATION AND QUALITY The trust of customers is essential for a business to succeed. MøllerGruppen therefore takes our quality work seriously. A prerequisite for successful quality improvement is that the business works systematically, involve the employees and focuses on the user of the product or service.

The importer, Harald A. Møller AS, was first certified to ISO 9001:ff in 2004. ISO 9001:ff is based on the principle of continuous improvement and has the overall goal of meeting customer expectations. Since then the company has undergone annual revisions of this standard and has every year been able to demonstrate improvements. Harald A. Møller AS is considered to be among the very best on this site in our industry.

In 2011 the company was certified according to ISO 14001: ff which is concerning the environment, but is based on the same principles.

Emergency Management
Møllergruppen has prepared a contingency plan to deal with unforeseen and undesirable incidents in a good way. In addition, it has been developed a program for emergency drills. Each year, several of the management teams of the companies get training in this program in terms of crisis or emergency handling.