Volvo Car (VOLCAR) ESG update summary

Sustainability strategy and integration

• Sustainability is embedded in company culture and long-term strategy, driving growth and profitability, with responsible business practices focused on employee wellbeing, human rights, and societal contributions.

• Investments focus on sustainable technologies, electrification, and supply chain transformation to meet regulatory and customer expectations.

• Electrification and circular economy are central, targeting 50% fully electric sales by 2025 and 100% by 2030, with a balanced portfolio of electric, hybrid, and mild hybrid vehicles.

• Responsible business practices include strong governance, risk management, and stakeholder engagement, with sustainability integrated at all levels.

• Active participation in global initiatives such as the UN Global Compact and WEF.

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 20% CO2 reduction per vehicle by 2023; operational emissions down 19% since 2018.

• Scope 1 and 2 emissions reduced by 65% since 2018, surpassing the 2030 SBTi target; Scope 3 use-phase emissions down 22%.

• CO2 steering model integrates emissions into car development and supplier decisions.

• Supplier requirements and digital tracking enhance emissions verification and reduction.

Circular economy and resource efficiency

• Ambition to be a circular business by 2040, with 25% recycled content by 2025 and 30% by 2030; goal of 35% in new models by 2030.

• 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.

• Initiatives include zero-waste materials, increased recycled copper, and expanded circular business models.

• Long-term ambition to be net positive for biodiversity across the value chain.