Volvo Cars Cuts Ocean Freight CO2 by 84%
Volvo Cars, a trailblazer in the automotive industry, has embarked on a pioneering journey to transform its intercontinental ocean freight operations.
By adopting renewable fuels, primarily Fatty Acid Methyl Esters (FAME) sourced from sustainable waste cooking oil, the company has achieved an astonishing 84% reduction in fossil CO2 emissions compared to traditional fuel.
This groundbreaking switch will immediately slash 55,000 tonnes of CO2 emissions annually, equivalent to the environmental impact of circling the equator 1,200 times with a full truck.
As the first global car maker to implement such a change, Volvo Cars takes immense pride in leading the way towards a greener future. By utilising renewable fuel for inbound ocean container transports destined for both European and American manufacturing plants, as well as for global spare parts distribution, the company sets an inspiring example for the entire industry.
This visionary initiative not only aims to achieve significant short-term results but also serves as a call to action for other car manufacturers to prioritise carbon-efficient ocean transports and embrace renewable fuels as a viable mid-term solution.
Javier Varela, Chief Operating Officer and Deputy CEO of Volvo Cars emphasises the importance of acting now to make a tangible impact while waiting for long-term technological alternatives.
Collaborating with logistics partners Maersk, Kuehne+Nagel, and DB Schenker, Volvo Cars ensures that the switch to renewable fuel is fully integrated into its supply chain. Through a third-party audited mass-balancing methodology, the company ensures that even when renewable fuel is unavailable for a specific shipment, its allocation is redirected to another customer's route, maintaining the overall reduction in fossil fuel use.
The commitment to sustainability stretches beyond ocean freight as Volvo Cars pursues its goal of becoming a climate-neutral company by 2040. To achieve this, the company aims to reduce the lifecycle carbon footprint per car by 40% between 2018 and 2025, including a 25% reduction in operational emissions, including logistics.
Additionally, Volvo Cars sets its sights on achieving climate-neutral manufacturing by 2025, marking crucial milestones in its journey towards environmental responsibility and sustainability.
To view and compare company ESG Ratings and Sustainability Reports across sectors, follow our Company ESG Profiles page.
Source: Volvo Cars