Volvo Cars to cut CO2 emissions and save billions in circular business target
Volvo Cars, distributed exclusively in the UAE by Al-Futtaim Trading Companies, targets annual savings of SEK 1 billion (over USD 119 million) and reductions of 2.5 million tonnes of carbon emissions at 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-emitting materials like steel and aluminum, as well as 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 believes that 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 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 now Volvo Cars is 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, 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 the 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.
In a similar project, Volvo Cars, Comsys AB, a Swedish cleantech company, and Fortum, a European energy company, are engaged in a commercial pilot project. It aims to increase the supply flexibility of one of Fortum’s hydroelectric facilities in Sweden while contributing to a second life for electric vehicle batteries. The batteries in Volvo’s plug-in hybrid cars will serve as a stationary energy storage unit, helping to provide so-called “quick-balancing” services to the electrical system.
Through these and other projects, Volvo Cars is studying the aging of batteries as they are reused in second-life applications that cycle much less aggressively than in-car use. They also allow the company to gain more knowledge about the business value of batteries after their use in cars and identify potential future revenue streams.
A subsidiary of the Al-Futtaim automotive group, Trading Enterprises was established in the 1970s in Dubai and is the exclusive authorized Volvo distributor in the UAE. It is empowered by a highly skilled and trained professional team to provide a complete car buying experience. Al-Futtaim Automotive is one of the five divisions of the Al-Futtaim Group that provides quality products and services that enrich people’s lives and aspirations every day. For more information on Volvo’s online services in the UAE, visit https://www.volvocars.com/en-ae/online-services