Recap from the Volvo Studio Ulm – talking about Volvo's sustainability strategy
On the 8th and 9th of July, we visited the Volvo Studio Ulm. We talked with Olaf Meidt, Head of Press and Public Relations Volvo Car Germany about the sustainability strategy and measures of Volvo. And of course we took your questions to Ulm and asked them on-site.
Volvo has set itself very ambitious goals – to name a few:
– by 2040 they want to become a climate-neutral company
– by 2040 they want to operate entirely according to the principles of the circular economy
– by 2030 they will produce only fully electric vehicles
– by 2025 they are aiming for 50% of its sales worldwide to be fully electric, hybrids making up the rest
– by 2025 they are aiming for climate-neutral production worldwide
“Sustainability is now as important as safety to us.” – Håkan Samuelsson, CEO Volvo
Safety has always been one of the core values of Volvo. They have dedicated their business to helping protect people’s lives – both inside and outside of its cars. Now with the implementation of various sustainable measures, Volvo shows a great dedication to help protecting the planet.
Of course we do not want to leave your questions unanswered. We received various one that we clustered into the following topics:
1. Circular economy / recycling / sustainable materials
2. Batteries
3. E-mobility
4. Production / logistics
5. Safety
6. Further business model
Volvo answered your questions in Ulm and we now brought and summarised them for you.
1. Circular economy / recycling / sustainable materials
”Which components and materials are already recycled and reused after the lifetime of a Volvo car?”
A large batch is the material that is left over from production, e.g. sheet metal. Volvo is investing in its pilot project Olofström, one of its manufacturing, to keep pushing the circular economy forward. Sheet metal, bodywork, doors etc. are built here. The circular economy is almost fully implemented here. Volvo has already achieved savings of over 200 tonnes of steel and several tonnes of aluminium due to its recycling and upcycling.
We are aware of it, that Volvo is member of the renowned EllenMacArthur Foundation, the world's leading organisation for promoting circular economy.
”What other measures they are taking to build the framework for a circular economy?”
Olaf Meidt pointed out that on their way to be a climate-neutral company by 2040, Volvo has to integrate all their suppliers to act fully sustainably. To reach that, Volvo works closely with all its suppliers and if one does not meet Volvo's requirements, consequences in the cooperation are to be expected.
Sustainability in the interior of the cars: leather-free, natural and recycled.
“Which recycled/sustainable materials is Volvo already using? “
Foot mats are being made of recycled nylon from old fishing nets. Fibres from PET plastic bottles are used in the seats as well as foot mats. From 2025, at least 25 per cent of the plastics used in newly launched models will be made from recycled material.
2. Batteries
”How sustainable are the batteries of e-cars?”
At first glance the batteries of electric cars are not sustainable as a high demand for raw materials is needed and the production is complex. That’s why Volvo has developed a strategy giving batteries a second life.
1. Reuse in vehicles
– batteries are being recycled and used again in electric cars
2. Reuse outside vehicles
– battery is inserted into an energy storage device
3. Recycling
Recovery of battery materials to be able to produce new ones
Only recently Volvo announced its partnership with Northvolt in order to drive the battery development forward. In 2026 they are planning to build a new battery Gigafactory operating according to the circular economy.
“Mobile phone batteries weaken after about two years. What about the battery of an electric car?”
Volvo gives an 8-year warranty on all electrified models and guarantees that during this time the battery will have over 70% charging capacity.
Volvo's goal is to be a pioneer in ethical and responsible behaviour.
However the mining and use of cobalt for the batteries is not very environmentally friendly and we know about the misery of the children in the mines.
“How does Volvo deal with it?”
Volvo has developed its own audit. Together with its suppliers go to e.g. Africa to check the conditions on site.
3. E-mobility
”It is known that electric cars are not "green". Building them is currently more carbon intensive than building a car with an internal combustion engine. How does Volvo compensate that and when does a Recharge model overtake a petrol car in terms of total CO2 emissions?”
Volvo did a lifecycle assessment (LCA) to find out which how much CO2 in total is needed to develop and produce a car. The XC40 as a combustion engine is relatively good when the car is being build. The XC40 Recharge, so the electric model is 40% worse in terms of CO2 footprint than the internal combustion engine. However this is getting better over the lifecycle. When the XC40 Recharge is being charged with green electricity, after 47.000 kilometers the break even is reached. So after that you are travelling more sustainable than with the combustion car.
“What strategy do you have to ensure that e-mobility continues to gain momentum?”
Many customers are still sceptical when it comes to electric cars. The charging infrastructure as well as the range anxiety play an important role. Volvo is pursuing a wide range of measures. Until 2030 next to the all-electric cars, there will be plug-in hybrids as well as mild-hybrids. But from 2030 only fully electric cars will be sold any longer. Dealers, suppliers and partners are closely involved into the journey of becoming a fully electric car company by 2030. Besides Volvo is engaging with political institutions. For example, they have joined an initiative that calls on the EU to set clear annual targets for when internal combustion engines will be phased out.
As said before, many customers are still reserved towards e.-mobility, especially when it comes to the charging infrastructure. In order to make e-mobility as comfortable and attractive as possible for the customer, Volvo is starting a collaboration with the charging service provider Plugsurfing, to offer its customers significantly lower prices at more than 340 Ionity charging stations throughout Europe.
4. Production / logistics
Volvo Cars is taking its next big step on the way to climate-neutral production. The main plant in Torslanda, Sweden, is the company's first fully climate-neutral passenger car production facility. Since 2018, the Skövde engine plant in Sweden is already climate-neutral.
“But was exactly does climate-neutral production mean?”
Volvo assesses a production site as fully climate neutral when it does not cause a net increase in greenhouse gas emissions from its electricity and heat consumption.
“What are Volvo's measures to reduce CO2 emissions in logistics?”
Volvo Cars shifts logistics from road to rail. The increased use of trains for vehicle logistics is expected to save massive amounts of CO2. For instance from the plant in Ghent, Belgium to the hub in the North of Italy now by train has led to a minimisation of CO2 emissions of 70-75%.
5. Safety
Volvo is known for its comprehensive safety philosophy and features.
”Are electric cars just as safe as petrol cars in an accident?“
There is no Volvo on the road that is not 100 safe. Thus an electric car is as safe as a petrol-driven car. However e-cars are more complex to build as the battery has to be protected. As a consequence the battery is produced to the highest quality standards in order to ensure that nothing happens in the event of an accident.
6. Further business model
”Is Volvo planning to develop alternatives to its cars, e.g. scooters, e-bikes?”
At the moment there is nothing in the pipeline next to the core business cars. However Volvo sets focus on connectivity. Partnering with Google enables them to bring the power of Android into their cars. So their customers can easily interact with their Volvo, integrating their car into their digital world and besides are offered access to a wide range of apps, connected and predictive services. For instance you can easily share via a code on your smartphone your car with friends and family when you are on holiday.
“How does Volvo integrate sustainability in other areas of the company, such as office, events etc.?”
Three years ago Volvo has started an initiative “no plastic” with the aim of not using disposable plastic in any company canteen or at any event. The implementation is very complex – alternatives have to be found which at the end of course have to be disposed in an appropriately sustainable manner. It is important to take steps towards a sustainable future and along the way we have to make compromises.
The C40, the first model in Volvo’s history being designed as a pure electric vehicle only, celebrated its German premiere in Ulm.
If you missed our talk with Volvo in Ulm, no problem. You now have the chance to watch it below (*only available in German).
Thank you Volvo for being so transparent and taking us and the customer on your journey and to explain your sustainability strategy and measures in more detail.
Pictures: Volvo Car Germany for ellectric
Text: Britta Reineke