Volvo Cars has announced an expansion of its sustainability strategy, setting bold objectives for 2030 and 2040, with a heightened emphasis on biodiversity. The company revealed its ambitious goals during the “Mission North” Dealer Event held in Ivalo, Finland.
As part of its commitment, Volvo Cars aims to link 100 percent of its debt to its Green Financing Framework or in a sustainability-linked format by 2025.
This initiative builds on a significant partnership with Al-Futtaim Group, named the Strategic E-Mobility Partner for COP28, underscoring a shared dedication to sustainability in the UAE.
Al-Futtaim Group’s engagement at COP28, along with the launch of the fully electric Volvo EX30 in the UAE, highlights its leadership in promoting sustainable mobility. The forthcoming launch of the all-electric EX90 later in 2024 further underscores this commitment, catering to the growing demand for electric vehicles (EVs) in the region.
Volvo Cars’ CEO, Jim Rowan, emphasiwed the critical nature of combating climate change, pointing to electrification as a key step in the company’s journey toward sustainability. The updated strategy focuses not only on reducing emissions but also on addressing biodiversity and improving lives. The targets for 2030 include a 75 percent reduction in CO2 emissions per car (from 2018 levels), a 40 percent reduction in energy usage per car, a 30 percent average recycled content across its fleet, and a 50 percent reduction in water use, among others.
“Taking actions to combat climate change is non-negotiable and going fully electric is an important step on our pioneering journey,” said Rowan. “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.”
Since its initial sustainability strategy launch in 2019, Volvo Cars has made significant strides, such as powering 69 percent of its operations with climate-neutral energy and using 100 percent climate-neutral electricity in its manufacturing plants. The company aims for net zero greenhouse gas emissions by 2040, prioritizing emission reductions over carbon removals.
The company’s journey toward becoming a circular business is also notable, with recycled materials comprising a significant portion of materials in new Volvo cars. For example, nearly 25 percent of all aluminum in the Volvo EX30 is recycled. By 2030, Volvo Cars plans to ensure 99 percent of its waste is reused or recycled.
In addition to environmental efforts, Volvo Cars is dedicated to positive social impacts, aiming to further reduce workplace injuries and safeguard human rights throughout its value chain. The company’s approach includes a comprehensive value chain impact on biodiversity and aims for a net positive impact to contribute to a nature positive future.
Together with partners like Al-Futtaim Group, Volvo Cars is poised to introduce new environmental and social initiatives, striving for a sustainable future for the planet and its people.
