Volvo Cars to reduce carbon emissions
Save billions in a circular business goal
Volvo Cars is targeting annual savings of SEK 1 billion and reductions of 2.5 million tonnes of carbon emissions from 2025 using circular business principles. Supporting the company’s long-term goal of becoming a circular business by 2040, Volvo Cars said it will create closed material loops for high-emitting materials such as steel and aluminum, as well as the refurbishment, repair, reuse and refurbishment of parts.
“Volvo Cars has one of the most ambitious climate plans in the automotive industry, and if we are to achieve our goals, we must embrace the circular economy,” said Anders Kärrberg, head of global sustainability at Volvo Cars. “It forces us to rethink everything we do and how we do it. We place a strong emphasis on integrating sustainability into the way we think and work as a business, and we make it as important as safety always has been to us.
To become a circular business by 2040, Volvo Cars says every part of its cars must be designed, developed and manufactured for use and reuse, either by the company or by its suppliers.
By focusing on resource efficiency and retaining the value created in materials and components for as long as possible during the life cycle, the company wants to optimize the use of materials, components and cars and eliminate the waste in the process. This will lead to financial savings and new sources of income as well as a significant reduction in our environmental impact.
Already Volvo Cars has said it is remanufacturing parts such as gearboxes and engines to make better use of materials and reduce emissions. In 2020, around 40,000 parts were remanufactured, saving nearly 3,000 tonnes of carbon dioxide emissions. By 2025, Volvo Cars aims to more than double its reconditioning business. To ensure that valuable materials can be kept in circulation, the company recycled 95% of its production waste last year. This included 176,000 tonnes of steel, thus avoiding the production of nearly 640,000 tonnes of carbon dioxide.
In 2020 Volvo Cars became a member of the Ellen MacArthur Foundation, which is the world’s leading circular economy network.
“We applaud Volvo Cars’ commitment to design, develop and manufacture its products for use and reuse. It is very encouraging to see the connection made between circular solutions, business strategy and reducing carbon emissions, ”said Joe Murphy, Network Manager at the Ellen MacArthur Foundation. “The circular economy provides businesses with a framework for sustainable long-term growth that also benefits society and the environment.”
New business models such as giving electric vehicle batteries a second life are important from a circular business perspective. By using batteries in energy storage applications outside of cars, new sources of revenue and cost savings can be achieved while extending the life cycle of batteries.
Together with its suppliers and partners, Volvo Cars is exploring the potential of second-life applications for its high-voltage batteries. A current example is a collaboration with BatteryLoop, a company of the Swedish recycling group Stena which reuses batteries from the automotive industry.
BatteryLoop and Volvo Cars use batteries from electrified Volvo cars for a solar energy storage system. From April, the system will power charging stations for electrified cars and e-bikes in the business center of Swedish hygiene and health company Essity, outside Gothenburg.
Get live stock quotes for BSE, NSE, US market and latest NAV, mutual fund portfolio, see latest IPO news, top performing IPOs , calculate your tax by income tax calculator, know the best market winners, the best losers and the best equity funds. Like us on Facebook and follow us on Twitter.