Volvo climate action plan receives SBTI approval

A new climate change initiative will see Volvo Cars reduce the lifecycle carbon footprint of its vehicles by 40 in the next 20 years.

Under the new initiative,  it is set to achieve a 50% reduction in exhaust emissions per car, a 25% reduction per car in operational carbon emissions, and a 25% reduction per car in supply chain carbon emissions.

The Swedish car manufacturer has received a third-party approval for its climate action plan.

The climate plan, under which Volvo Cars strives to become a climate neutral company by 2040, has been scientifically verified by the Science Based Targets Initiative (SBTI), a non-profit organisation that provides companies with a clear pathway to support the Paris Agreement.

According to SBTI, Volvo Cars’ climate plan, which also includes short-term 2025 ambitions, is in line with the required carbon reduction levels to limit global warming to well under 2°C compared to pre-industrial levels.

In its validation process, SBTI specifies how much and how quickly individual companies have to reduce their greenhouse gas emissions in order to meet the ambitions as laid out in the Paris Agreement.

“As a mobility provider, we are part of the problem of climate change, but we can also be part of the solution,” Volvo Cars corporate functions head Hanna Fager says.

“Carbon reduction has the highest priority within our company. Having our climate ambitions validated by SBTI gives us valuable reassurance that we are on the right track.”

Launched last year, Volvo Cars’ climate plan addresses carbon emissions across all its operations and products, towards its vision to become climate-neutral by 2040.

The plan goes beyond addressing tailpipe emissions through electrification; the company will also tackle carbon emissions in its manufacturing network and wider operations, its supply chain and through recycling and reuse of materials.

As a first, tangible step towards its 2040 vision the company aims to reduce its lifecycle carbon footprint per car by 40% by 2025.

Volvo Cars is yet the only brand to offer a plug-in hybrid variant on every model in its line-up. It will also introduce a range of fully electric models in coming years, starting with the XC40 Recharge, deliveries of which will start in some markets later this year.

Sales of its plug-in hybrid cars amounted to almost a quarter of sales in Europe during the first half of 2020. During the period, Volvo Cars was the number one plug-in hybrid premium brand in Europe as measured by market researcher HIS.

By 2025 Volvo Cars aims for its global sales volume to consist of 50% fully electric cars, with the rest hybrids.