SBTi-approval of Volvo Group’s climate targets

Source: press release, 8 June 2021

photo: Volvo Group
photo: Volvo Group

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. Now 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 organisations 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° 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 1.5⁰C 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, 10 years earlier than the SBTi commitment. Volvo’s products have an average lifetime of 10 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% safe, 100% fossil-free and 100% 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.