Volvo Cars wants to cut CO2 emissions and save billions in circular business target
Doha: Volvo Cars has targeted 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 will create closed material loops for high-emission materials such as steel and aluminum and remanufacturing, 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. 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 company. We make it as important as safety always has been to us, ”said Anders Kärrberg, Head of Global Sustainability at Volvo Cars.
To become a circular business by 2040, Volvo Cars believes that every part of its cars must be designed, developed and manufactured for use and reuse by the company or 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.
Volvo Cars is already reconditioning 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 CO2 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 percent of its production waste last year. This included 176,000 tonnes of steel, thus avoiding the production of nearly 640,000 tonnes of CO2.
In 2020 Volvo Cars became a member of the Ellen MacArthur Foundation, 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 link made between circular solutions, business strategy and reducing carbon emissions. The circular economy provides businesses with a framework for long-term sustainable growth that also benefits society and the environment, ”said Joe Murphy, Network Manager at the Ellen MacArthur Foundation.
New business models such as giving electric vehicle batteries a second life are essential from a circular business perspective.
Volvo cars are distributed in Qatar by Doha Marketing Services Company (DOMASCO), a leading multi-brand company in Qatar and a member of the Al Futtaim group. It has a diverse portfolio of passenger cars, motorcycles, utility vehicles, marine and electrical products, watches and electronics, representing some of the most visible and award-winning brands in the world.