Volvo Takes Another Huge Step Towards Climate Neutrality

Industry News / 3 Comments

The automaker's commitment to cutting CO2 emissions is paying off.

As a vehicle manufacturer in 2020, your brand will suffer under either more stringent regulations or in consumer perception if it isn't playing its part to move towards a more sustainable model. That's why Volvo must be delighted with its latest milestone - the Swedish manufacturer attained 80 percent renewable electricity usage globally.

This comes after its plant in Chengdu - the largest Volvo plant in China - reached 100 percent renewable electricity usage after a new supply contract was signed. Volvo has been working towards more environmentally-friendly facilities for some time, with its Skovde, Sweden factory already declared as 100 percent climate-neutral.


It's all part of the manufacturer's greater goal to achieve climate-neutral manufacturing by 2025 and, by 2040, for Volvo to be a climate-neutral company. The Chengdu plant had already sourced 70 percent of its power usage from renewable sources, and the new supply contract takes that number up to 100 percent. Hydropower, wind power, and solar power are among the energy sources for the plant.

"Securing a fully renewable electricity supply for our largest plant in China is a significant milestone," said Javier Varela, who heads up industrial operations and quality at Volvo.

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Forming part of Volvo's environmentally-aware goals is the hope that half of its sales will be of fully electric vehicles by 2025, with the remaining half of its vehicles being hybrids. Already, the brand has introduced 48-volt mild-hybrid technology on models like the 2021 S90 and V90. Electrification isn't the preserve of the brand's larger and more upscale models only, as we've seen with the Volvo XC40 Recharge, which is the first of many planned EVs for the brand.

With cleaner factories and a raft of expected electric vehicles, Volvo is drastically cutting its carbon emissions on and off the road. The latest advancement at the Chengdu plant will reduce CO2 emissions by more than 11,000 tonnes alone each year. It seems like Volvo is on track to meet its ambitious goals for the near future.

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