Volvo Cars has announced an update to its sustainability strategy, introducing ambitious goals for 2030 and 2040, with an enhanced focus on biodiversity. CEO Jim Rowan emphasised the company’s commitment to combating climate change and highlighted the importance of transitioning to fully electric vehicles as a significant step in this journey. He stated that the updated strategy is designed to further reduce emissions throughout the value chain, address the company’s biodiversity footprint, and improve people’s lives.
The new sustainability ambitions for 2030 include:
- Reducing CO₂ emissions per car by 75% compared to 2018 levels.
- Decreasing energy usage in operations per average car by 40% compared to 2018 levels.
- Achieving 30% average recycled content across the fleet, with new car models containing at least 35% recycled content.
- Cutting water use in operations by 50% per car compared to 2018 levels.
- Ensuring that at least 99% of all waste from operations is either reused or recycled.
Since releasing its sustainability strategy in 2019, Volvo Cars has made significant progress toward its climate action targets. Currently, 69% of the company’s operations are powered by climate-neutral energy, up from 55% in 2019. Additionally, all manufacturing plants globally now use 100% climate-neutral electricity, an increase from 80% in 2019. The company has also reduced CO₂ emissions per car by 19% since 2018.
Looking ahead, Volvo Cars aims to achieve net zero greenhouse gas emissions by 2040. This goal expands upon previous ambitions of being climate-neutral by 2040 and clarifies the intention to use carbon removals only to offset any unavoidable emissions. The company’s priority remains to reduce emissions as much as possible throughout its value chain.
Farewell to Diesel Engines
A significant aspect of this transformation is Volvo Cars’ farewell to diesel engines and full embrace of electric mobility. For decades, diesel engines were synonymous with reliability and efficiency, playing a crucial role in establishing the company as a premium automotive brand. However, the rapid acceleration of the electric revolution, driven by tightening regulations on tailpipe emissions and growing consumer demand for cleaner transportation, has reshaped the industry.
As recently as 2019, diesel-powered vehicles constituted the majority of Volvo Cars’ European sales, while electric models were just beginning to gain traction. Today, most of the company’s sales on the continent consist of electrified models. In the past year alone, Volvo Cars increased sales of fully electric vehicles by 70% and expanded its global electric market share by 34%. These figures confirm that the transition toward an all-electric future is the correct path forward.
While Volvo Cars’ future is undeniably electric, its current portfolio includes high-quality plug-in hybrid and mild-hybrid models, which serve as an ideal bridge to a fully electric future.
In addition to climate action, the updated strategy places a greater emphasis on biodiversity. Volvo Cars recognises the interconnectedness of climate change and biodiversity loss and is committed to addressing both issues through its sustainability initiatives.
By updating its sustainability strategy, Volvo Cars reaffirms its dedication to environmental stewardship and its role in creating a more sustainable future.