{"id":2109,"date":"2022-05-31T18:12:37","date_gmt":"2022-05-31T18:12:37","guid":{"rendered":"https:\/\/hispanicmotorpress.org\/?p=2109"},"modified":"2022-08-13T22:49:53","modified_gmt":"2022-08-13T22:49:53","slug":"volvo-cars-is-first-car-maker-to-join-steelzero-initiative-in-support-of-fossil-free-steel-ambitions","status":"publish","type":"post","link":"https:\/\/hispanicmotorpress.org\/volvo-cars-is-first-car-maker-to-join-steelzero-initiative-in-support-of-fossil-free-steel-ambitions\/","title":{"rendered":"Volvo Cars is first car maker to join SteelZero initiative in support of fossil-free steel ambitions"},"content":{"rendered":"\n
Underlining its position as a leader in climate action, 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 signing up to SteelZero, Volvo Cars commits itself to stringent CO2<\/sub>-based steel sourcing requirements by 2030 (see Notes to Editors)<\/em>. By 2050, all the steel it sources should be net-zero steel, which is in line with the company\u2019s ambition to be climate neutral by 2040.

Steel production is a major source of CO2<\/sub> emissions for the automotive industry, averaging 33 per cent of all production-related emissions for a new Volvo car in 2021. Globally, steel production is responsible for around 7 per cent of all greenhouse gas emissions.

\u201cA 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,\u201d said Kerstin Enochsson, chief procurement officer at Volvo Cars. \u201cWe are pleased to join the SteelZero initiative and support its ambitions to transform the steel industry. By signalling our demand for responsibly sourced low- and zero-carbon steel, we aim to help drive an increased supply to our sector.\u201d

Jen Carson, head of industry at Climate Group, said: \u201cVolvo 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. This sector plays a central role in driving the net zero transition of steel. It\u2019s 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.\u201d

SteelZero was launched by the Climate Group in partnership with ResponsibleSteel, a steel industry-wide standard and certification body which Volvo Cars has also joined. Through ResponsibleSteel, Volvo Cars gains access to reliable, third-party verified and audited information about its steel supply chain and relevant sustainability credentials, helping to ensure it is responsibly sourced.

As well as CO2<\/sub> reductions, ResponsibleSteel also focuses on other important issues in the steel supply chain like labour and human rights, engagement with local communities, water use and biodiversity impact.

The SteelZero signing is only the latest initiative by Volvo Cars to address one of car making\u2019s most intensive sources of CO2<\/sub> emissions. Only last year, it announced a collaboration with Swedish steel maker SSAB to jointly explore the development of fossil-free, high quality steel for use in the automotive industry through SSAB\u2019s HYBRIT initiative.

Volvo Cars is the first car maker to work with SSAB and HYBRIT, an ambitious and advanced project in fossil-free steel development. HYBRIT aims to replace coking coal, traditionally needed for iron ore-based steelmaking, with fossil-free electricity and hydrogen. The result is expected to be the world\u2019s first fossil-free steelmaking technology, with virtually no carbon footprint.

Volvo Cars\u2019 ambition to by climate neutral by 2040 is part of its comprehensive climate action plan, one of the most ambitious in the auto industry. It aims to become a fully electric car maker by 2030 and plans to roll out a whole new family of pure electric cars in coming years.

The company\u2019s electrification plans are part of its ambition to reduce the lifecycle carbon footprint per car by 40 per cent between 2018 and 2025, including through reducing carbon emissions in its supply chain by 25 per cent by 2025.

In terms of its own operations, the company aims for climate-neutral manufacturing by 2025. Already now, all of Volvo Cars\u2019 European plants run on 100 per cent clean electricity, while its Torslanda plant in Sweden is fully climate-neutral. Elsewhere in the world, its Chengdu and Daqing sites in China are also powered by climate-neutral electricity.

Last year, Volvo Cars introduced an internal carbon price of 1,000 SEK for every tonne of carbon emissions from across its entire business, the first car maker to implement such a mechanism across all its operations. The aim is to future-proof its organisation and be ahead of the regulatory curve, as it anticipates and favors more governments implementing carbon price in coming years.

Under the scheme, every car project undergoes a \u2018sustainability sense-check\u2019 and a CO2<\/sub> cost is imposed for every anticipated tonne of carbon emissions throughout the car\u2019s life cycle. The aim is to ensure that each car model would be profitable even under a strict carbon pricing scheme, steering all project and sourcing decisions towards the most sustainable option on the table. Notes to editors<\/strong> As well as a long-term commitment to procure 100 per cent fossil-free steel by 2050, SteelZero signatories also commit to 50 per cent of their steel procurement by 2030 meeting at least one of the following criteria: Steel produced by a steelmaking site where the site\u2019s corporate owner has defined and made public both a long-term emissions reduction pathway and a medium-term, quantitative science-based greenhouse gas emissions target for the corporation (a target approved by the Science Based Targets initiative or equivalent would meet this interim requirement in full)ResponsibleSteel-certified steel, or equivalentLow embodied carbon steel, with a defined specific emissions intensity which takes into account the proportion of end of life scrap Volvo Cars\u2019 climate reporting always refers to CO2<\/sub> equivalents (CO2<\/sub>e), which includes all greenhouse gases <\/strong>——————————- <\/em><\/strong>Volvo Cars in 2021
<\/em><\/strong>Volvo Car Group recorded an operating profit of 20.3 BSEK. Revenue in 2021 amounted to 282.0 BSEK, while global sales reached 698,700 cars.<\/em> <\/em><\/strong>About Volvo Car Group
<\/em><\/strong>Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected car brands in the world with sales to customers in more than 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange, where it is traded under the ticker \u201cVOLCAR B\u201d.<\/em> <\/em>Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This is reflected in its ambition to become a fully electric car maker by 2030 and in its commitment to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.<\/em> <\/em>As of December 2021, Volvo Cars employed approximately 41,000 full-time employees. Volvo Cars’ head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars’ production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg, Camarillo (US) and Shanghai (China).<\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n","protected":false},"excerpt":{"rendered":"

Underlining its position as a leader in climate action, 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. 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