Volvo Cars is first car maker to join SteelZero initiative in support of fossil-free steel ambitions

    Volvo has always focused on being a leader in climate action, from the design of our vehicles, to the inside of our facilities. As of today, all Volvo Cars European plants are run on 100% clean electricity, while our Torslanda plant in Sweden is fully climate-neutral. Our ambition is to be climate neutral by 2040, and aim to become a fully electric car maker by 2030.

     As time brings innovation of new products that can reduce our carbon footprint,  Volvo Cars has become the first car maker to sign up to the SteelZero initiative, which aims to increase demand for fossil-free steel and accelerate a transition to carbon neutrality in the global steel industry.

    By becoming a part of the SteelZero initiative, Volvo is striving to achieve CO₂-based steel sources by 2030, and by 2050, all the steel sources should be net-zero steel,   which is in line with our ambition to be climate neutral by 2040.

    Steel production is a major source of CO₂ emissions for the automotive industry, averaging 33 per cent of all production-related emissions. Globally, steel production is responsible for around 7 per cent of all greenhouse gas emissions. “A sustainable approach to steelmaking is not just good news for the environment, it is also good business as it limits our exposure to future climate risks and regulations,” said Kerstin Enochsson, chief procurement officer at Volvo Cars.

    Jen Carson, head of industry at Climate Group, said: “Volvo Cars joining SteelZero marks an important step change in the global demand signal for low emission and net zero steel, and a pivotal moment for the automotive industry. It’s supporting the creation of a decarbonised steel market internationally, that can enable the sector to meet its own net zero targets and deliver a product that is truly aligned with the climate agenda.”

By 2030, SteelZero plans to have 50% of their steel procurement produce low embodied carbon steel, and a steelmaking site where  both a long-term emissions reduction pathway and a medium-term, quantitative science-based greenhouse gas emissions target for the corporation. The target will help the company further understand greenhouse-gas emissions and ways to reduce them in their products.