VOLVO ELECTRIC: TOWARDS NET ZERO

How to Create Truly Sustainable Innovations in a Large Corporate Context

Long-term Ambitions

Volvo Group is committed to achieving the following long-term ambitions:

• 100% Safe
• Fossil-free
• More productive

Volvo Group Path to Decarbonize the Value Chain

The breakdown of Volvo Group’s carbon footprint across the value chain is as follows:

• 4%: Upstream (materials and components)
• 1%: Own operations
• 95%: Downstream (products in use)

Several Technology Tracks to Decarbonize Downstream

Volvo Group employs a three-pronged approach to decarbonize its downstream operations:

• Battery-electric vehicles
• Fuel cell-electric vehicles
• Internal combustion engines

Net Zero 2040

• The path to decarbonization is unique for each market and each customer.
• Our three-pronged approach ensures flexibility and resilience in the transition.
• The pace of the transition depends on a variety of factors.

Fixing the Equation for Electromobility Adoption

Electromobility adoption rate is determined by the following equation:

Electromobility adoption rate = Product and services offering × Total cost of ownership (including incentives, regulation, carbon targets, and pricing) × Infrastructure × Fossil-free energy × Supply network = Customer competitiveness and peace of mind

Supply Chain Decarbonization Will Grow in Importance as Pace of Electrification Increases

• Start with the materials and components with the largest carbon footprint.
• Define individual key decarbonization levers.
• Levers include increased use of recycled input materials, a higher share of renewables, and the introduction of new technologies.
• Use our purchasing power as a means to drive progress.

Using Partnerships as a Way to Accelerate the Transition

Key partners and initiatives include:

• Cellcentric
• Milence
• Samsung SDI
• Innovation Hub & Accelerator
• Strategic Alliance with Isuzu Group
• Societal Partnerships

Keeping up with the latest developments is essential for continued success—and impossible to do alone. Volvo Group engages in numerous collaborations and partnerships to accelerate the transition.

A Century of Transportation Innovation—Now, Time to Reimagine It

• Volvo Group has been part of perfecting the transportation system for almost 100 years. Now, we need to reimagine it.
• Volvo Group is committed to driving change.
• Technology is essential, but not enough.
• The transformation also requires:
  • Flexibility and resilience
  • A systemic approach and ecosystem collaboration