Volvo cars

Volvo Cars elegantly restates its unwavering commitment to sustainability, introducing new aspirations that embrace a deep focus on biodiversity.

Last Updated: February 23, 2024By Tags: ,

Embracing a broader sustainability vision, Volvo Cars sets bold 2030 and 2040 goals. The company, driven by a heightened commitment to biodiversity, strives for all debt to align with its Green Financing Framework or sustainability formats by 2025.

“Taking actions to combat climate change is non-negotiable and going fully electric is an important step on our pioneering journey,” says Jim Rowan, CEO of Volvo Cars. “As we move to further reduce emissions throughout our value chain, we have a responsibility to do more and address our biodiversity footprint as well as help improve people’s lives. Our updated strategy has been designed to help us do just that.”

Volvo Cars’ new sustainability ambitions for 2030 in short:

  1. Reduce its CO2 emissions per car by 75 percent (compared to 2018 levels).
  2. Reduce energy usage in its operations per average car by 40 percent (compared to 2018 levels).
  3. Reach 30 percent average recycled content across its fleet, with new car models having at least 35 percent recycled content.
  4. Reduce water use in its operations by 50 percent on average per car (compared to 2018 levels).
  5. At least 99 percent of all waste from its operations to be either reused or recycled.

Since unveiling its sustainability strategy in 2019, Volvo Cars has advanced towards its climate goals. Notably, 69% of company operations are now powered by climate-neutral energy, up from 55% in 2019. Globally, all manufacturing plants now use 100% climate-neutral electricity, compared to 80% in 2019. Furthermore, CO2 emissions per car have decreased by 19% since 2018.

Net zero greenhouse gas emissions by 2040

Volvo Cars now target zero greenhouse gas emissions by 2040, building upon the previous goal of climate neutrality. Carbon removals will be employed only for unavoidable emissions, with a commitment to prioritize emission reduction. Encouraging suppliers to follow suit, the company aims for 100% green debt or sustainability-linked financing by 2025, recognizing the pivotal role of finance in sustainable development.

The pivotal year of 2030 signifies Volvo’s transition to a fully electric car company, accompanied by a 75% reduction in CO2 emissions per car compared to the 2018 baseline. Achieving this involves exclusive sales of electric cars and a 30% emission cut in both the supply chain and operations.

Working towards becoming a circular business by 2040

At Volvo Cars, the commitment to the circular economy began in 2019. The latest models showcase increased use of recycled materials, with around 25% recycled aluminum, 17% recycled steel, and plastic in the Volvo EX30.

Looking ahead, Volvo aims for a 30% average recycled content across its fleet by 2030, with new models from 2030 containing at least 35% recycled content. Additionally, the company strives for a 99% reuse or recycle rate for all its waste by 2030, an advancement from the 94% achieved in 2022.

volvo-ex30-exterior

Photo: Volvo Cars

Striving to be net positive and to contribute to a nature-positive future

Volvo Cars is committed to a comprehensive approach, addressing its impact on biodiversity through reduction and restoration actions. An impact assessment, utilizing 2021 data and the ReCiPe model, guides Volvo Cars in estimating its annual biodiversity footprint. Using this baseline, the company aspires to achieve a net positive impact across its value chain, contributing to a nature-positive future.

To realize this ambition, Volvo Cars is crafting a mix of short-term and long-term measures. This includes minimizing value chain impacts, developing restoration and conservation programs within its operating ecosystems, and collaborating with supply chain partners to raise awareness on biodiversity issues.

Help protect people’s lives within and beyond the value chain

Committed to making a positive societal impact, Volvo Cars actively addresses workplace safety, with the current injury rate (LTCR) at an industry-leading 0.07. The company aims to further reduce it to 0.02 by 2030. Across its value chain, Volvo Cars conducts thorough risk-based due diligence processes to identify and address human rights risks, emphasizing a commitment to safeguarding human rights.

In collaboration with like-minded partners, Volvo Cars anticipates introducing innovative social and environmental initiatives in the coming year, reinforcing its dedication to protecting people and the planet.

The small print

  • On across its fleet by 2030: This refers to all models currently being produced at that time.
  • On net positive across its value chain: Aiming towards net positive means that Volvo Cars will take actions to avoid and reduce its impacts, as well as engage in restoration and regeneration of nature to the extent that it positively balances its negative impacts.
  • On nature positive: Volvo Cars’ aim to contribute towards nature positive means that it will not only aim to be net positive but also aim at continuously reducing its negative impact relative to a 2021 baseline.
  • On injury rate (LTCR): Injury rate (LTCR) is defined as the number of work and occupational accidents reported with at least one day of sick leave, divided by hours worked and multiplied by 200,000.
  • On risk-based due diligence processes to trace, identify, assess, and address human rights risks: Risk-based due diligence processes implemented globally to assess the potential or actual adverse impact and prioritize actions to cease, prevent, mitigate and remedy identified human rights violations. The processes should fulfill the upcoming EU Corporate Sustainability Due Diligence Directive (CSDDD) and its human rights compliance program. This includes a responsible sourcing management system aiming to introduce a formalized and consistent process to proactively manage human rights and environment-related risks in Volvo Cars’ supply chains for all its identified Raw materials of concern (RMOC)
  • On together with like-minded partners: Recent examples in this space are Volvo Cars’ financial and in-kind support to Save the Children and UNICEF’s Ukraine response and collaboration with Girls Who Code.

 

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