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SBTi-approval of Volvo Group's industry-leading climate targets

ENV, TRN, VLVLY

PR Newswire

GOTHENBURG, Sweden , June 8, 2021 /PRNewswire/ -- Volvo Group's climate targets are in line with what the latest climate science deems necessary to keep global warming at a maximum 1.5° C. Volvo Group's pathway to reach the goals of the Paris Climate Agreement has now been validated by the Science Based Targets initiative (SBTi).

"We are committed to take the lead and transform our industry towards a more sustainable future," says Martin Lundstedt , President and CEO of Volvo Group.

In November 2020 , Volvo Group committed to establish interim targets and a pathway towards Net-zero value chain greenhouse gas emissions by 2050 at the very latest. Today, these targets have been validated by the SBTi.

"The Volvo Group has with this approval the most ambitious SBTi targets in the industry and our roadmap is in line with the Paris Agreement and the SBTi higher level of ambition. We are leading the way by also targeting the 1.5-degree target when it comes to emissions from the trucks and buses we sell, which constitute most of our business," says Martin Lundstedt , President and CEO of Volvo Group.

The Science Based Targets initiative offers organizations two different ambition levels in their pursuit to reduce greenhouse emissions. The Standard Commitment to limit global warming to well below 2°C above pre-industrial levels and the Business Ambition for 1.5 °C to align emissions reduction targets to the 1.5-degree target in the Paris agreement.

Volvo Group has committed to the latter option and is taking it further in several areas:

  • In an industry-first, Volvo Group has developed its own pathway towards the 1.5°C target for trucks and buses , with a targeted emissions reduction of 40% per vehicle km by 2030.
  • Volvo Group's targets for indirect emissions covers approximately 95% of the products sold. This is industry-leading and well above SBTi's minimum requirement of 67%.
  • Volvo Group targets to reach net-zero value chain emissions by 2040 at the latest, ten years earlier than the SBTi commitment. Volvo's products have an average lifetime of ten years in the customer use-phase. For the entire rolling fleet to have net-zero emissions by 2050, it is necessary that all products delivered after 2040 have net-zero emissions.

With 2019 as a base year, Volvo Group has set its interim targets and will follow up and report on its progress continuously in a transparent way.

"Climate change is real and one of the greatest challenges of our time. The Volvo Group has embarked on an irreversible transformational journey to change our offering with an ambition to be 100 percent safe, 100 percent fossil-free and 100 percent more productive. We are ready to drive the needed transformation journey for our industry together with our customers, partners and society," says Martin Lundstedt , President and CEO of Volvo Group.

FACTS

The Science Based Targets initiative (SBTi) 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 (GHG) emissions are considered to be "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, United Nations Global Compact (UNGC), World Resources Institute (WRI), World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments.

June 8, 2021

Journalists wanting further information, please contact Claes Eliasson , Volvo Group Media Relations, +46 76 553 72 29 For more information, please visit volvogroup.com/climate For frequent updates, follow us on Twitter: @volvogroup

The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden , employs almost 100.000 people and serves customers in more than 190 markets. In 2020, net sales amounted to about SEK 338 billion ( EUR 33.6 billion ). Volvo shares are listed on Nasdaq Stockholm.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/ab-volvo/r/sbti-approval-of-volvo-group-s-industry-leading-climate-targets,c3362811

The following files are available for download:

https://mb.cision.com/Main/39/3362811/1428973.pdf

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https://news.cision.com/ab-volvo/i/1860x1050-volvo-sbti-image,c2922735

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Cision View original content: http://www.prnewswire.com/news-releases/sbti-approval-of-volvo-groups-industry-leading-climate-targets-301307434.html

SOURCE AB Volvo



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