Volvo Car (VOLCAR) ESG Update summary

Strategic sustainability vision and integration

• Sustainability is fully integrated into business strategy, decision-making, and product development, with a focus on climate action, circular economy, and responsible business.

• Electrification is seen as the most impactful climate solution, with a long-term goal of net-zero greenhouse gas emissions by 2040.

• The company remains committed to electrification despite market, regulatory, and geopolitical challenges, adjusting short-term targets but maintaining industry-leading ambitions.

• Sustainability efforts extend beyond CO2 to address pollution and biodiversity loss, with a holistic approach across the value chain.

• Strong ESG ratings and recognition as one of the world's most sustainable companies in 2024.

Climate action and decarbonization progress

• Achieved a 26% reduction in CO2 emissions per car versus 2018, with 46% of vehicles electrified in 2024.

• Targeting 30%-35% CO2 reduction per car by 2025, 65%-75% by 2030, and 90%-95% by 2040.

• 78% of operations powered by climate-neutral energy, with 100% climate-neutral electricity at manufacturing plants.

• Material emissions increased by 21% per vehicle due to higher battery and aluminum content in EVs, but actions are underway to reverse this trend.

• Achieved a 74% reduction in Scope 1 and 2 emissions, surpassing the 2030 SBTi target.

Circular economy and resource efficiency

• Aiming for 30% recycled content across the fleet by 2030 and 35% in new models.

• 94% of waste is now reused or recycled, with closed material loops for steel and aluminum established in the EU and China.

• Circular business revenue declined due to lower scrap generation, lower scrap prices, and changes in production sourcing.

• New models like EX90 and ES90 feature increasing recycled and bio-based content, with ongoing efforts to improve circularity.