Sustainability

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

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

A man observing a woman working on a smart board with a stylus

How are we organized?

Our sustainability governance structure is organized 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 organization

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. The Head of GST reports directly to our CEO.

Green Finance Committee (GFC)

The GFC reviews and validates the selection of the Eligible Green Projects and reviews the EU Taxonomy Report see

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 received for the first time 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 per cent best performing automotive companies that year 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 percent of the 75,000 companies assessed.

S&P: Global Corporate Sustainability Assessment – Bronze

Volvo Cars received for the first time 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 per cent best performing automotive companies that year for environmental, social and corporate governance (from approximately 7,500 assessed).

Logo of S&P Global.

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).

A logo of CDP disclosure insight action A list 2021.

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 percent of the 75,000 companies assessed.

A logo of Ecovadis platinum top one percent.

Our collaboration partners

We’re committed to reduce our impact on the planet and that takes a global effort. Collaborating with companies, organizations, and NGOs is vital to drive industry change and performance. A few examples:

CDP

Volvo Cars participates in the CDP Supply Chain Program and collects data via the climate questionnaire for our top strategic suppliers based on emission intense products. We also submit to CDP Climate and CDP Water.

CDP

Responsible Minerals Initiative

To support continuous improvements of working and living conditions in artisanal and small-scale mining communities, Volvo Cars collaborates with Better Mining, an assurance and impact programme led by RCS Global Group in the DRC and Rwanda.

Responsible Minerals Initiative

Responsible Business Alliance

Volvo Cars is a member of the world’s largest coalition dedicated to advance corporate social responsibilities throughout global supply chains

Responsible Business Alliance

Drive Sustainability

Volvo Cars is a founding member of Drive Sustainability, a network of companies that works specifically to improve all aspects of social and environmental sustainability in the automotive industry.

Drive Sustainability

Ellen Macarthur Foundation

Volvo Cars is a member of the Ellen Macarthur Foundation – a leading global network of businesses, innovators, universities, and thought leaders - to find inspiration for our circular economy approach, and we further submit to the EMF Circulytics tool.

Ellen Macarthur Foundation

United Nations Global Compact

Volvo Cars is a proud founding member of the UN Global Compact since 2000, and observing its Ten Principles. Our Communication of Progress report is found on the UNGC website.

United Nations Global Compact

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 analyze 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 analyzing Transitional Risks and IPCC’s 8.5 Scenario for analyzing Physical Risks. By analyzing 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)

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.