Climate change is one of the biggest challenges of our time. The Volvo Group is determined to fulfil our commitment to the goals of the Paris Agreement and lead our industry in the transformation towards net-zero greenhouse gas emissions by 2040. This is a huge challenge for the world and for us. 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. In accordance with this, we have set ambitious and ground-breaking targets that are in line with the latest climate science on what is deemed necessary to limit global warming to a maximum of 1.5⁰C above pre-industrial levels.
Interim Science Based Targets - leading the way to net-zero 2040, with 2019 as baseline:
- Lower the CO₂ emissions with 40% per vehicle km by 2030 for our trucks and buses
- Lower the CO₂ absolute emissions with 30% by 2030 for Volvo CE
- Lower the CO₂ absolute emissions with 37.5% by 2034 for Volvo Penta
- CO₂ absolute emission reduction with -50% by 2030, with 2019 as baseline
Our targets and methodology are approved by the Science Based Targets initiative. We have now set our interim targets and will follow up and report on our progress continuously and in a transparent way aligning our work with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). 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.
The Volvo Group target to reach net-zero greenhouse gas emissions by 2040 is an enabler to reach a rolling fleet and value chain net-zero emissions by 2050 at the latest. This is ten years earlier than the actual SBTi commitment of 2050. For the Volvo Group, this is a huge transformation. First and foremost, we will drive the transformation towards electrification with the main alternatives BEV and fuel cells. 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. Our commitment to SBTi includes direct and energy indirect emissions from operations, purchased goods and services to be able to reach net-zero by 2040.
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 from production, transports and life-cycle use of our products. The newly set interim Science Based Targets towards 2040 will lead us to reach net-zero value chain including rolling fleet 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.
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.
Interim Science Based Targets to reach net-zero GHG emissions by 2040, with 2019 as baseline:
Our emissions and energy data are part of our Annual and Sustainability Report and have been subject to third party assurance.
During 2010-2020, we were part of the WWF Climate Savers. In 2021 we take the next step and enter the Science Based Targets initiative. The SBTi is a partnership between CDP (Carbon Disclosure Project), the United Nations Global Compact, World Resources Institute (WRI) and the World Wildlife Fund (WWF).
The SBTi is designed for organizations to set targets aligned with UN Paris agreement on climate change. The Volvo Group target to reach net-zero greenhouse gas emissions by 2040 is an enabler to reach a rolling fleet and value chain net-zero emissions by 2050 at the latest. On our way to achieve this we have now set ambitious interim science-based targets aiming towards scenario 1.5oC.
Since SBTi measurements are set towards well-below 2.0oC (B2DS), the Volvo Group has adopted 1.5oC transport SDA pathway, applying the same methodology to reach “absolute contraction approach” by 2040 instead of 2050.
Now we raise the ambition with our science-based targets and go for net-zero emission by 2040. But our work and commitment to climate action is not new. At year-end 2020, we concluded our climate targets 2015-2020 covering production, freight transports and product use-phase.
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.
As part of the WWF Climate Savers, 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 drove 14 initiatives – magnifiers - to promote energy efficiency, reduced carbon emissions, and positively influence the value chain. At year-end 2020, we concluded that all have been finalized.
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.