Volvo Cars publishes updated 2026 Green Financing Framework
Volvo Cars today published its updated 2026 Green Financing Framework, to support its ambitious sustainability and electrification strategy. The updated framework received the highest possible rating, "Dark Green" shading, from S&P Global Ratings, demonstrating the group’s continued progress in electrification and emission reduction.
The 2026 Green Financing Framework highlights the company’s efforts to align with the 2025 ICMA Green Bond Principles and the 2025 LMA, LSTA, and APLMA Green Loan Principles. It also defines how green financing instruments are set up within Volvo Cars to finance its ambition of reaching net-zero greenhouse gas emissions by 2040.
“The updated Green Financing Framework further demonstrates our continued focus and commitment to allocating capital for development and manufacturing of fully electric cars and reducing emissions from our supply chain. Additionally, we are encouraged that our updated framework continues to receive the highest possible Dark Green rating from S&P Global Ratings,” said Fredrik Hansson, CFO at Volvo Cars.
In 2020, Volvo Cars established its first Green Financing Framework to lay the foundation for future green bond issuances and other forms of sustainable funding for its ambitious transformation and electrification strategy. Since then, the company has successfully issued green bonds and green loans under the framework. The Green Financing Framework was subsequently updated in 2023. On both occasions, the framework received the “Dark Green” shading from second party reviewers.
As of December 2025, the share of green debt, in accordance with the Green Financing Framework, accounted for 98 per cent of the group’s outstanding debt. Volvo Cars' share of green debt stood at 52 per cent in 2023, when the framework was last updated.
“Strengthening our Green Financing Framework is another important step in ensuring that capital flows directly to the areas where it can have the greatest positive climate impact,” said Vanessa Butani, Head of Global Sustainability at Volvo Cars. “It further reflects our continued commitment to accelerating decarbonisation across our value chain.”
Skandinaviska Enskilda Banken (SEB) acted as structuring agent on the establishment of the framework. The framework has been reviewed by S&P Global Ratings, a leading independent expert for the research-based assessment of Green Finance Frameworks.
Full details on Volvo Cars’ Green Financing Framework and the Second Party Opinion can be found here.
