Volvo Cars recognised for its leadership in climate action
Volvo Cars has been recognised for its sustainability strategy by global environmental non-profit CDP, securing an A-score for its actions aimed at cutting emissions, mitigating climate risks and becoming a climate-neutral company.
This places Volvo Cars in the highest tier of CDP’s climate change list, together with only a smaller number of companies. More than 13,000 companies participated by disclosing data on their environmental impacts, risks and opportunities, and Volvo Cars’ high score reflects its position as a leader in environmental ambition and climate action.
“We are very proud to see that our hard work to cut emissions and becoming climate neutral is being recognised by CDP,” says Anders Kärrberg, head of global sustainability at Volvo Cars. “Receiving the prestigious A-score shows that we are on the right track, and hopefully we can inspire other companies to do even more.”
Volvo Cars aims to become a fully electric car maker by 2030 and plans to roll out a whole new family of pure electric cars in coming years, one of the auto industry’s most ambitious electrification plans. This is part of its ambition to become a climate neutral company by 2040, as it works to consistently cut carbon emissions across its business.
The company seeks to reduce the lifecycle carbon footprint per average car by 40 per cent between 2018 and 2025, including through reducing carbon emissions in its supply chain by 25 per cent by 2025.
Volvo Cars is taking active steps to address these emissions, including through planned collaborations with Swedish steel maker SSAB to develop fossil free steel and with Swedish battery company Northvolt to develop and manufacture the next generation of sustainable battery cells.
In conjunction with signing the zero emission road transport declaration at the UN climate change conference COP26 in November, Volvo Cars also introduced an internal carbon price of 1,000 SEK for every tonne of carbon emissions from across its entire business, becoming the first car maker to implement such a carbon pricing mechanism across its complete operations.
Notes to editors
A detailed and independent methodology is used by CDP to assess the companies, allocating a score of A to D- based on the comprehensiveness of disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets.
The full methodology and criteria for the A List is available on CDP’s website.
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Volvo Cars in 2020-2021
For the twelve months between July 2020 and June 2021, Volvo Car Group recorded an operating profit of 22.5 BSEK (14.3 BSEK in 2019). Revenue over the period amounted to 292.1 BSEK (274.1 BSEK in 2019), while global sales reached 773,000 cars.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker “VOLCAR B”.
Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This is reflected in its ambition to become a fully electric car maker by 2030 and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.
As of December 2020, Volvo Cars employed approximately 40,000 full-time employees. Volvo Cars' head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars' production plants are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg, Camarillo (US), Sunnyvale (US) and Shanghai (China).
About CDP
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions.
Founded in 2000 and working with more than 590 investors with over $110 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 14,000 organizations around the world disclosed data through CDP in 2021, including more than 13,000 companies worth over 64% of global market capitalization, and over 1,100 cities, states and regions.
Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative.