Volvo has taken its ambition to another level, much more than tailpipe emissions or all-out electrification. The Swedish carmaker is focusing on becoming a climate-neutral company by the year 2040.
This automobile manufacturer has taken a step to reduce its life cycle carbon footprints per car by 40% between the year 2018 and 2025. Volvo will also deal with carbon emission in its manufacturing network, through its supply chain and by recycling and reusing of materials.
The plan constituted actions in accordance with the global Paris Climate Agreement of 2015, which aimed to limit global warming to 1.5°C above the pre-industrial levels.
The company has devised a number of ambitions for different parts of its operations and within the next five years, Volvo cars will have a total CO2 footprint which will include supply chain, logistics, and much more, with 40% lesser usage than a Volvo of today.
The company also targeted generation of 50% of global sales from fully electric cars and a 25% share in recycled plastics for the new vehicles. By the year 2025, the short-term goal of Volvo is to minimize CO2 emission by 25 %.
The Volvo XC40 Recharge EV, Volvo will introduce its average life cycle carbon footprint for every new model and the data will be disclosed after the production of a compact SUV in the second half of 2020.
Volvo planned to cover the high cost of reducing its carbon footprint by craving out its engine unit and combining it with parent Zhejiang Geely Holding Group, which will help Volvo to invest more in the development of full-electric drivetrains. In January 2018, Volvo’s engine plant in Skovde, Sweden became Carbon neutral. The climate-neutral target year is a decade ahead of the European Union.