Volvo Cars Reinforces Sustainability Vision with New 2030 and 2040 Goals

In a major step towards a greener future, Volvo Cars has announced an expansion of its sustainability strategy, setting forth ambitious targets for 2030 and 2040. The company is intensifying its focus on biodiversity and aims to link 100% of its debt to its Green Financing Framework or a sustainability-linked format by 2025.

Elevating Climate Action Efforts 

Jim Rowan, CEO of Volvo Cars, emphasizes the urgency of climate action and the pivotal role of electrification in the company's strategy. “Going fully electric is a crucial part of our pioneering journey," he says. Volvo Cars aims to significantly reduce emissions across its value chain, while also addressing biodiversity impacts and enhancing people's lives.

2030 Sustainability Ambitions 

Volvo Cars has outlined specific goals for 2030, including a 75% reduction in CO2 emissions per car compared to 2018 levels, a 40% decrease in energy usage per average car, reaching 30% average recycled content across its fleet, and reducing water usage and waste in its operations by 50% and 99%, respectively.

Progress Since 2019 

The company has made substantial progress since unveiling its sustainability strategy in 2019. Notably, 69% of its operations are now powered by climate-neutral energy, up from 55% in 2019. All its manufacturing plants globally use 100% climate-neutral electricity. Furthermore, Volvo Cars has already achieved a 19% reduction in CO2 emissions per car since 2018.

2040: A Net Zero Emission Goal 

Volvo Cars is setting its sights on achieving net zero greenhouse gas emissions by 2040. This goal builds upon their earlier ambition of being climate neutral, with a clear focus on reducing real emissions before considering carbon removals. The company is also encouraging its suppliers to adopt similar practices.

Financing a Sustainable Future 

By 2025, Volvo Cars plans to fully integrate sustainability into its financial operations. The company recognizes the critical role of finance in advancing sustainable development and is committed to achieving 100% green debt or sustainability-linked financing.

The Path to Full Electrification by 2030 

By 2030, Volvo Cars aims to be a fully electric car company. This transition, combined with a 30% reduction in emissions from its supply chain and operations, is expected to put the company on track to meet its CO2 reduction goals.

Circular Economy and Recycled Materials 

Since 2019, Volvo Cars has focused on the circular economy, increasingly incorporating recycled materials into its cars. For instance, nearly 25% of the aluminum in the Volvo EX30 is recycled. By 2030, the company aims to use an average of 30% recycled content across its fleet, with new models containing at least 35% recycled material.

Biodiversity and Social Responsibility 

In its commitment to biodiversity, Volvo Cars is developing a range of short-term and long-term measures, including restoration and conservation activities. The company's social responsibility initiatives include reducing its workplace injury rate to 0.02 by 2030 and safeguarding human rights across its value chain.

In conclusion, Volvo Cars is taking a comprehensive and proactive approach to sustainability, setting ambitious goals that span environmental impact, social responsibility, and financial sustainability. With these initiatives, the company is not only contributing to a greener planet but also setting a precedent in the automotive industry for others to follow.