Volvo Cars Enhances Sustainability Focus With New EV Portfolio

Volvo Cars has announced its plans to expand its sustainability strategy, with new ambitious goals set for 2030 and 2040. The company is also increasing its focus on biodiversity and aims to have all of its debt linked to its Green Financing Framework or in a sustainability-linked format by 2025. This announcement comes after a significant partnership between Volvo's local partner, Al-Futtaim Group, and COP28. Al-Futtaim Group was named Strategic E-Mobility Partner for the global gathering, highlighting its commitment to sustainability. Al-Futtaim Automotive, a division of Al-Futtaim Group, aims to deliver 50% new energy vehicles (NEVs) and install 10% of the charging stations in the UAE by 2030.

During COP28 last year, Al-Futtaim Automotive launched the fully electric Volvo EX30 in the UAE and plans to introduce the all-electric EX90 in late 2024. These actions align with Volvo's green goals in the region and demonstrate the growing demand for electric vehicles. CEO of Volvo Cars, Jim Rowan, emphasized the importance of combatting climate change and the company's commitment to going fully electric. He stated that Volvo's updated strategy will address emissions reduction, biodiversity, and improving people's lives.

Volvo Cars has set several sustainability ambitions for 2030. The company aims to reduce CO2 emissions per car by 75% compared to 2018 levels. It also plans to lower energy usage in its operations per average car by 40% and achieve 30% average recycled content across its fleet, with new car models having at least 35% recycled content. Additionally, Volvo Cars aims to reduce water use in its operations by 50% per average car and ensure that 99% of all waste from its operations is either reused or recycled.

Since the release of its sustainability strategy in 2019, Volvo Cars has made progress towards its climate action targets. Currently, 69% of the company's operations are powered by climate-neutral energy, compared to 55% in 2019. Volvo Cars also uses 100% climate-neutral electricity across its manufacturing plants globally. The company has already reduced its CO2 emissions per car by 19% since 2018.

Volvo Cars' new goal is to achieve net zero greenhouse gas emissions by 2040. The company intends to prioritize reducing real emissions before relying on carbon removal, encouraging its suppliers to do the same. By 2030, Volvo Cars aims to become a fully electric car company and reduce CO2 emissions per average car by 75% compared to its 2018 baseline. The company believes that by combining the sale of fully electric cars with emissions reductions in its supply chain and operations, it will be on track to achieve its CO2 reduction goals.

Volvo Cars is also committed to becoming a circular business by 2040. The company has been embracing the circular economy since 2019, with recycled materials making up a larger proportion of materials in newer Volvo cars. Volvo Cars aims to increase the average recycled content across its fleet to 30% by 2030 and ensure that new car models released from 2030 contain at least 35% recycled content. The company also strives to reuse or recycle 99% of all its waste by 2030.

In terms of biodiversity, Volvo Cars takes a complete value chain approach and aims to have a net positive impact. The company conducted an impact assessment using production and sales data from 2021 to estimate its annual biodiversity footprint. Volvo Cars is now setting a long-term ambition to strive for net positivity across its value chain and contribute to a nature-positive future. This includes measures such as reducing impacts, restoration and conservation activities, and raising awareness of biodiversity issues among supply chain partners.

Volvo Cars is determined to have a positive impact on society. The company is focused on reducing workplace injuries and aims to further reduce the injury rate to 0.02 by 2030. Volvo Cars also prioritizes safeguarding human rights throughout its value chain by implementing risk-based due diligence processes.

Volvo Cars looks forward to unveiling new social and environmental initiatives in the future, working alongside like-minded partners to protect people and the planet. With its expanded sustainability strategy and ambitious goals, Volvo Cars is committed to leading the way towards a greener and more sustainable future.