Climate Strategy

Our ambition is to become a net-zero emission company by 2050 at the very latest. The Volvo Group is committed to the goals of the Paris Agreement, the ambition is to hold the increase in global average temperature to well below 2°C above pre-industrial levels, and to pursue efforts to limit the temperature increase to 1.5°C. This is a huge challenge for the world and for us. There are many factors beyond our control, but with broad and ambitious collaborations and a holistic climate strategy, we have committed to the Science Based Targets initiative (SBTi). Targets and roadmaps will be established during 2021, and we are continuously aligning our work with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

One of the most important things we can do is to help reduce our customers’ emissions. Developing products and solutions that reduce the CO2 footprint is thus the first priority in our climate strategy. Our focus is to bring innovative and competitive solutions to the market in areas where we can make the greatest impact.

Volvo Group Climate

As we set climate targets and other environmental targets, we also consider climate impacts from our industrial activities. We strive to continuously reduce waste and emissions, optimize water use and improve our handling of solvents, oils and chemicals. One focus areas of our climate strategy is to replace fossil power with sustainable energy sources such as wind, solar, biomass and bio fuels.

An optimized global footprint in our supply chain will reduce lead-time for our customers and actively reduce our CO2 footprint. Through our climate strategy we aim to secure outstanding quality and technology at the best possible commercial offer when we purchase any product, service or solution. We also encourage suppliers to routinely control, minimize and if possible eliminate greenhouse gas emissions. In this way we seek collaboration with business partners to jointly contribute to the Paris agreement and global climate goals. 

Towards fossil free transport solutions

Towards fossil free transport solutions

We believe transportation will be fossil free by 2050, the year the world needs to be CO2 neutral to meet the Paris Agreement global climate goals. Our first priority is to develop solutions that reduce the CO2 footprint from our products. The transition to a fossil free transport system requires a range of solutions and our main focus areas are:

  • Electrification and hydrogen
  • Sustainable bio-fuels
  • Solutions to optimize energy efficiency and reduce fuel consumption
Read more about fossil free transport solutions
Environmental footprint from operations

Environmental footprint from operations

The environmental footprint from our operations is relatively small compared to that from the use phase of our products. Nevertheless, we are constantly considering climate and environmental impacts from our industrial activities through our environmental and climate strategy. In our operations, the main focus areas to reduce our footprint are energy and emissions, waste and chemicals.

Learn more about our environmental footprint

Climate targets

Climate goals graphs | Volvo Group
Climate goals graphs | Volvo Group

Third party assurance

Our emissions and energy data is part of our Annual and Sustainability Report and have been subject to third party assurance. 

Collaborations
WWF’s Climate Savers program

WWF’s Climate Savers program

We were the first company in our industry to enter the WWF’s Climate Savers program in 2010. The objective of the Climate Savers program is to recognize corporate leadership on climate solutions and inspire further progress towards the Paris Agreement global climate goals. The agreed targets help us focus on actions that matter, such as reduction of greenhouse gas emissions and contributions to a lower-emissions society.

Our magnifiers

We are also setting out to magnify our commitment by advocating and driving climate positive solutions in our industry and throughout the value chain. During 2015-2020, we established 14 initiatives – magnifiers - to promote energy efficiency, reduced carbon emissions, and positively influence the value chain. While some of these have been finalized, others span the full 5 years period. We will conclude these at year end 2020 and review what our climate change strategy achieved.

  • Co-chairing the Advisory Group on Sustainable Transport together with the United Nations Secretary-General.  In 2014, the UN announced the membership of a High-level Advisory Group on Sustainable Transport to provide recommendations on sustainable transport actionable at global, national, local and sector levels. 
  • ElectriCity – start a bus line in Gothenburg operating with fully electric buses and electric hybrid buses.
  • Hosting the Construction Climate Challenge (CCC) that aims to promote sustainability throughout the entire construction industry value chain and provide funding for environmental research.
  • Site optimization by developing a supporting tool for customers to improve efficiency for a whole construction site. See Electric Site.
  • Industry Standardization leadership; Participation in the International Standardization Organization’s work to develop a standard for machine fuel efficiency within the construction equipment industry.
  • Advanced technology development and through field-tests demonstrate technologies with considerably better fuel efficiency improvements.

  • Supplier Environmental Awareness through cooperation with suppliers to improve their climate change strategy.
  • Use of renewable energy. Volvo Group will participate in two of WWF initiatives; Corporate renewable energy buyer principle and Biofuels roundtable.
  • CO2- neutral facility in Asia. Volvo Group will perform a study of Volvo sites in Asia and the possibilities to switch to renewable energy use.
  • Demonstrate new advanced technology for trucks in prototypes.
  • Volvo Group will increase sales of fuel saving devices. I-Save.
  • Develop a prototype engine application with hybrid technology. Volvo Group will develop at least one off-road diesel engine application with hybrid technology.
  • Increased use of IPS for Marine Commercial applications. Develop IPS technology so it can be used for more applications which will save fuel.
  • Starting up a so-called City Mobility concept in at least five cities.

Learn more

Fossil free transport solutions

Read more about our products environmental footprint and performance.

Environmental footprint from operations

Read more about our operations environmental footprint and performance.

GRI Report

Sustainability reporting is included in our Annual and Sustainability Report. In our GRI Index we disclose the specific economic, environmental and social sustainability topics that are material to the Volvo Group.