Volvo Car (VOLCAR) ESG update summary

Strategic sustainability framework

• Focuses on personal mobility, sustainability, and safety as core pillars since 1972, with resilience and human rights embedded across operations.

• Electrification remains central, with investments in SPA3 architecture and new manufacturing sites now completed, enabling cost efficiency and market expansion.

• Despite a global slowdown in electrification, battery electric vehicles (BEVs) are the fastest-growing segment, with the company leading in electrified sales among legacy peers.

2030 and 2040 sustainability ambitions

• Targets net zero across the value chain by 2040, including emissions from materials, manufacturing, logistics, and car use.

• Aims for 65%-75% CO2 reduction per car by 2030 (vs. 2018), 90%-100% electrified sales, and climate-neutral energy in operations.

• Focuses on circularity, prioritizing recycled content and ecosystem restoration.

2025 milestone achievements and challenges

• Achieved 46% electrified global sales and a 31% CO2 reduction per car compared to 2018, meeting key corporate targets.

• Seven of nine plants now use 100% climate-neutral energy; EX60 model reached 27% recycled/bio-based content.

• 97.9% of outstanding debt is green or sustainability-linked.

• Missed some targets due to external factors like infrastructure delays and policy changes, but remains committed to long-term goals.