Sustainability
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.
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
Board of Directors (BoD)
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.
Executive Management Team (EMT)
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.
Global Sustainability Team (GST)
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.
Green Finance Committee (GFC)
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)
Line of business
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.
S&P: Global Corporate Sustainability Assessment – Bronze
S&P: Global Corporate Sustainability Assessment – Bronze
Volvo Cars has for the first time received a Bronze award in the 2021 Corporate Sustainability Assessment (CSA) by ratings provider S&P Global, known for its highly stringent sustainability ratings. This places Volvo Cars among the top 10% best performing automotive companies for environmental, social and corporate governance (from approximately 7,500 assessed).
CDP: Climate Change A List and Supplier Engagement Leader
CDP: Climate Change A List and Supplier Engagement Leader
We are one of only 200 companies that made CDP’s Climate Change A List (from 13,000 submissions), and received its highest rating. Based on our CDP result, we were also acknowledged as a Supplier Engagement Leader in recognition of our climate action within our supply chain (top 8% in supplier engagement).
EcoVadis: Platinum
EcoVadis: Platinum
For the fourth consecutive year, Volvo Cars received the highest rating for its sustainability performance from EcoVadis, a leading provider of corporate sustainability assessments for global supply chains. Our Platinum status places us in the top 1 per cent of the 75,000 companies assessed.
S&P: Global Corporate Sustainability Assessment – Bronze
Volvo Cars has for the first time received a Bronze award in the 2021 Corporate Sustainability Assessment (CSA) by ratings provider S&P Global, known for its highly stringent sustainability ratings. This places Volvo Cars among the top 10% best performing automotive companies for environmental, social and corporate governance (from approximately 7,500 assessed).
CDP: Climate Change A List and Supplier Engagement Leader
We are one of only 200 companies that made CDP’s Climate Change A List (from 13,000 submissions), and received its highest rating. Based on our CDP result, we were also acknowledged as a Supplier Engagement Leader in recognition of our climate action within our supply chain (top 8% in supplier engagement).
EcoVadis: Platinum
For the fourth consecutive year, Volvo Cars received the highest rating for its sustainability performance from EcoVadis, a leading provider of corporate sustainability assessments for global supply chains. Our Platinum status places us in the top 1 per cent of the 75,000 companies assessed.
Climate-related risks and global warming scenarios
From a world economic point of view, climate change is a top risk both in terms of impact and likelihood. It affects our company and our industry in many ways.
We analyse different global warming scenarios in accordance with TCFD recommendations to verify the resilience of our strategy. We used IEA’s Stated Policies Scenario (4DS) and Sustainability Development Scenario (<2DS) for analysing Transitional Risks and IPCC’s 8.5 Scenario for analysing Physical Risks. By analysing impact and likelihood in these different scenarios, we not only identified risks that affect our company, but also opportunities.
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.