Sustainability

Governance

Our sustainability strategy is fully integrated into our corporate strategy and is challenged frequently by regular analysis, including climate-related risks and opportunities.

We have a governance structure in place to monitor the progress of our sustainability strategy, ambitions and initiatives.

Climate change is the ultimate safety test.

How are we organised?

Our sustainability governance structure is organised according to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). This means we conduct frequent sustainability reviews at each management level including Board of Directors. The global sustainability team oversees the development and progress of the sustainability strategy across the company.

The organisation

Our BoD sets the strategic direction and approves our strategy, including sustainability and follows up progress. Our climate action plan with its risks and opportunities is discussed at the regular BOD meetings.

The EMT is responsible for the overall governance, execution and implementation of the sustainability strategy and regularly monitors progress through several KPIs. The climate action plan with risks and opportunities is reviewed quarterly.

The GST is centrally responsible for the day-to-day governance and coordination of sustainability. It develops and refines the sustainability strategy, leads and supports the strategic initiatives and follows up on the progress of our KPIs. It also gathers business intelligence on sustainability matters.

The GFC reviews and validates the selection of the Eligible Green Projects (see Green Financing Report on page 189 of our Annual Report) and reviews the EU Taxonomy Report see (EU Taxonomy Report on page 184 in our Annual Report)

Functional management teams are responsible for ensuring that sustainability becomes an integrated part of everyone’s daily work. They are sounding boards for the GST members and can be requested to secure resources and funding for sustainability initiatives.

ESG reporting

We believe in external third-party validation of our sustainability performance. It’s essential to gaining credibility. It’s reassurance to our people and external stakeholders that our sustainability strategy and our ambitions support global goals, such as the UN SDGs and the Paris Agreement.

Climate-related risks and global warming scenarios

The man behind Volvo’s Lambda sensor system shows his invention.

Task Force on Climate-Related Financial Disclosures (TCFD)

We are a TCFD supporter and report according to TCFDs eleven recommended disclosures since Annual Report 2020.