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 and the 1.5 business ambition to achieve net-zero value chain emissions by 2050 at the latest. Interim targets will be set 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.
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 area of our climate strategy is to replace fossil power with sustainable energy sources such as wind, solar, biomass and biofuels.
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.
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:
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.
At year-end 2020, we concluded our climate targets 2015-2020 covering production, freight transports and product use-phase. We will continue to save energy and reduce emissions and during 2021, set intermediate Science Based Targets on the way to reach net zero by 2050 at the latest.
Implement energy savings that from 2020 save 150 GWh per year.
Since 2015, 1,260 activities have been implemented, that together save 207 GWh per year from 2020.
Implement energy savings of 150 GWh 2021-2025.
Reduce freight CO2 emissions per Produced unit by 20%.
Freight emissions per produced unit were 24% lower in 2020 compared to the baseline 2013.
Reduce CO2 emissions from freight transports per produced unit by 30% by 2025, with 2018 as base year.
Achieve life cycle CO2 emissions savings from products of at least 40 million tons cumulative.
An estimated 43 million tons of CO2 emissions have been saved 2015 to 2020.
During 2021, set intermediate Science Based Targets on the way to reach net zero by 2050 at the latest.
Our emissions and energy data is part of our Annual and Sustainability Report and have been subject to third party assurance.
We were the first company in our industry to enter the WWF’s Climate Savers program in 2010.
Climate Savers is WWF’s leadership program with the objective to recognize corporate leadership on climate solutions. It includes WWF's partners with ambitious strategies to develop net zero business models and demonstrate that reductions in greenhouse gas emissions can go hand in hand with economic growth.
We also set out to magnify our commitment by advocating and driving solutions for net zero emissions in our industry and throughout the value chain. During 2015-2020, we have driven 14 initiatives – magnifiers - to promote energy efficiency, reduced carbon emissions, and positively influence the value chain. At year-end 2020, we conclude that all have been finalized.
During the last 5-year we have seen extensive progress on climate awareness and action in our industry and in our company. A summary of our 14 magnifiers for climate action:
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.