Volvo Car (VOLCAR) ESG update summary

Sustainability strategy and integration

• Sustainability is embedded in company culture and long-term strategy, driving growth and trust with customers and partners.

• Aims for net zero greenhouse gas emissions by 2040, with 50% fully electric sales by 2025 and 100% by 2030.

• Investments focus on sustainability, especially through electrification and supply chain transformation.

• Regulatory demands and customer expectations are key motivators for proactive sustainability action.

• Plug-in hybrids serve as a bridge to full electrification, supporting a balanced portfolio across regions.

Climate action and emissions targets

• Net zero greenhouse gas emissions targeted by 2040, with interim goals of 40% CO2 reduction per car by 2025 and 75% by 2030 (vs. 2018 baseline).

• Achieved a 20% reduction in CO2 emissions per average vehicle since 2018; Scope 1-2 emissions reduced by 65% and Scope 3 use-phase emissions down 22%.

• Electrification, low-emission materials, and operational efficiency are the main levers for emissions reduction.

• CO2 steering model integrates emissions into car development and supplier decisions, with digital tools for tracking.

• Supplier requirements and life cycle assessments are used to verify and reduce upstream emissions.

Circular economy and resource efficiency

• Ambition to become a circular business by 2040, minimizing primary resource use and waste.

• 2025 target: 25% recycled content; 2030 target: 30% fleet-wide and 35% in new vehicles.

• EX30 model achieved 17% recycled content, highest to date.

• Over 99% of waste reused or recycled by 2030; 23% reduction in water withdrawal per car since 2018.

• Biodiversity strategy aims for net positive impact across the value chain, focusing on material sourcing and restoration.