Volvo Group Announces It Has Committed To Science-Based Targets Initiative
The Volvo Group announced it is taking the next step in adjusting and future-proofing the company in line with the ambitions of the Paris Climate Agreement. The goal is that Volvo Group will be a net-zero emissions company by 2050, at the very latest, the company said. In order to be transparent on its progress, the company is now committing to the Science-Based Targets initiative.
“Our commitment to future generations is well-known and the Volvo Group is doing its part in achieving the goals of the Paris Agreement,” said Martin Lundstedt, president and CEO of the Volvo Group. “Being the leader in sustainable transport and infrastructure solutions is good for the company and its stakeholders, but even better for the world. With our transformation comes a responsibility to openly and transparently report our progress; now we take the next step and commit to set Science Based Targets.”
Setting ambitious targets on the reduction of CO2 emissions is nothing new to the Volvo Group, which has been collaborating with the World Wide Fund for Nature (WWF) Climate Savers program since 2010. In the current program, the Volvo Group has set out to save energy and reduce emissions from its own production and transports as well as from the products it sells.
At year-end 2019, the Volvo Group had reduced CO2 emission per shipped volumes in its own freight transport system by 18 percent from a baseline in 2013.
In the manufacturing operations, energy-saving projects totaling 170 GWh have been implemented since 2015. Together with an increased share of renewable energy, these have resulted in CO2 emissions from the group’s manufacturing operations being reduced by more than 35 percent in 2013–2019.
Thanks to improved fuel efficiency, customers using Volvo Group solutions have reduced CO2 emissions by 34 million tons cumulatively since 2015.
As a next step in its climate strategy, the Volvo Group is now committing to the Science-Based Targets initiative and will establish targets and roadmaps during 2021 toward being a net-zero emissions company by 2050 at the latest.
To improve the disclosure of climate-related risks and opportunities, the Volvo Group supports the Task Force on Climate-Related Financial Disclosures (TCFD) and will continue to adopt its recommendations.
The Science-Based Targets initiative helps companies establish science-based targets to reduce greenhouse gas emissions and transform business operations to fit the future low-carbon economy. Targets adopted by companies to reduce greenhouse gas emissions are considered “science-based” if they are in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement: to limit global warming to well-below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C.
SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute, the WWF and one of the We Mean Business Coalition commitments.
Climate Savers is WWF’s leadership program with the objective to recognize corporate leadership on climate solutions: develop low-carbon, zero-carbon or carbon-positive business models and demonstrate that reductions in greenhouse gas emissions can go hand-in-hand with economic growth. Volvo Group has been part of the program since 2010.