Climate Change Data

AB Volvo (publ)

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:266 million tons (Scope 3.11)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Safety
  • Human Rights
  • Business Ethics
  • Employee Well-being
  • Diversity & Inclusion

Environmental Achievements

  • All business areas are in serial production of heavy-duty electric vehicles and machines.
  • Deliveries of fully electric vehicles and machines grew by 128% to 4,996 units.
  • Reduced total CO₂ emissions per net sales (scope 1 & 2) to 0.6 tons/SEK M from 0.7 tons/SEK M in 2022.
  • Set climate targets in line with the Paris Agreement, validated by the Science Based Targets initiative.

Social Achievements

  • Continued focus on workplace safety, aiming for zero accidents.
  • Initiatives to improve work-life balance and mental health.
  • Investment in upskilling and reskilling programs for employees.
  • Commitment to diversity and inclusion, aiming for at least 35% of each gender in all teams.
  • Paid SEK 57,020 M in salaries and remuneration.

Governance Achievements

  • Strong financial position with net financial assets of SEK 83.4 billion in Industrial Operations.
  • Improved credit rating.
  • Implementation of a Green Finance Framework, classified as Dark Green by CICERO Shades of Green.
  • Continued focus on business ethics and compliance.

Climate Goals & Targets

Long-term Goals:
  • Net-zero greenhouse gas emissions by 2040
  • Enable customers to have net-zero rolling fleets by 2050
Medium-term Goals:
  • At least 35% electric vehicles by 2030
  • Reduce emissions per vehicle km by 40% by 2030 (Trucks and Buses)
  • Reduce absolute emissions by 30% by 2030 (Construction Equipment)
  • Reduce absolute emissions by 37.5% by 2034 (Volvo Penta)
  • Reduce absolute emissions by 50% by 2030 (Own Operations)
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Geopolitical turmoil
  • Continued supply chain disturbances
  • Cost inflation
  • Fluctuating demand for products and services
  • Intense competition
  • Evolving regulations
  • Political and social uncertainty
  • Transitional risks related to decarbonization
  • Availability of battery cells and charging infrastructure
  • Cybersecurity risks
  • Climate-related physical risks
  • Human rights risks in the supply chain
  • Data protection compliance
Mitigation Strategies
  • Successful mitigation of cost inflation with price management
  • Strong commercial focus
  • Investments in new technologies and business models
  • Partnerships and collaborations
  • Continuous improvement efforts
  • Robust financial position
  • Active risk management
  • Compliance programs
  • Supplier audits and responsible procurement
  • Investing in battery pack and cell production
  • Developing charging infrastructure
  • Strengthening cybersecurity measures
  • Implementing human rights due diligence
  • Data protection compliance programs

Supply Chain Management

Supplier Audits: 93% of direct material purchasing spend from suppliers having made a CSR self-assessment

Responsible Procurement
  • Supply Partner Code of Conduct
  • Sustainable minerals program

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Natural disasters
Transition Risks
  • Regulatory changes
  • Market shifts
  • Technology development
  • Availability of renewable energy and charging infrastructure
Opportunities
  • Development of energy-efficient products
  • Increased revenues from electric vehicles and services

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: Null

Third-party Assurance: Limited assurance by the Group’s auditors

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Electric trucks, buses, and construction equipment
  • Fuel cell electric trucks
  • Internal combustion engines running on renewable fuels

Awards & Recognition

  • Volvo FH Electric awarded International Truck of the Year 2024