An increased focus on circularity will result in improved resource efficiency and significant cost-saving opportunities. Prolonged life cycles, reuse and recycling will all contribute towards a circular economy, reducing the use of resources and decreasing cost of production.

Now is the time to accelerate opportunities of circular economy and sustainability. We are adopting a strategic approach on circular economy to fully capture its value and become more competitive and are in the phase of defining new circularity ambitions based on the below.

Towards circular economy

Design phase

We have the greatest opportunity to influence our offerings’ life cycles and sustainability profiles in the early design phase. This requires a mindset of circular economy and sustainability where we carefully consider the materials, technologies and business models right from the drawing board. Circular design considers a range of topics throughout the life cycle, such as reducing or avoiding materials, maintenance and repair to extend operating life, recovering or recycling of materials at end of life as well as packaging. It can also mean designing new business models, which enable all of the above.


Remanufacturing uses less energy than manufacturing a new component, while still meeting high quality demands. The remanufacturing program operates with engines, filters, gearboxes and rear-axle transmissions and our aim is to extend this program to cover more markets and more components. We strive to work with materials that can be easily reclaimed, remanufactured and recycled. 

Our target is to increase the remanufacturing business by 60% by 2025, with 2018 as baseline.

Zero waste to landfill

Currently we have seven sites that send zero waste to landfill, and we have set a target to transform 55 sites to zero waste to landfill by 2025, with 2018 as base year. We continuously strive to minimize residuals and increase the share of material used for recycling and reuse. Increased circularity for plastics and a strengthened battery life-cycle management is high on our agenda.

There are significant circularity business opportunities associated with giving a product a second life and using recycled materials in new products. There will always be residuals in industrial production. To have zero waste means to take care of those residuals either internally or via credible business partners.

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Batteries second life

New cooperation between Volvo Buses and Stena Recycling subsidiary BatteryLoop.

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We can work together to electrify, choose alternative fuels and maximize the utilization of products. 

Read more about our solutions

Sustainable Chain of Transportation challenge

More than 500 students ages 13 to 17 from all around the world took on the challenge from Volvo and IVA. 56 multinational teams successfully developed innovative and functioning solutions during their 60-day project.

Learn more about the competition

Sustainability News

Latest Press Release

Latest Press Release