Volvo Cars to Join SteelZero Initiative in Support of Fossil Free Steel
Volvo Cars has signed up to SteelZero, an initiative launched by the non-profit Climate Group which aims to increase demand for fossilfree steel and accelerate a transition to carbon neutrality in the global steel industry.
By signing up to SteelZero, Volvo Cars has committed to a timescale that will see 50 per cent of their steel procurement be fossil-free steel by
2030. The company aims to be climate neutral by 2040.
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 verified and audited information about its steel supply chain and relevant sustainability credentials. As well as CO2 reductions, ResponsibleSteel also focuses on other issues in the steel supply chain such as labour and human rights, engagement with local communities, water use and biodiversity impact.
Volvo Cars is putting plenty of effort into becoming cleaner and greener as it moves towards its goal of becoming a fully electric carmaker by 2030.
Last year, it announced a collaboration with Swedish steelmaker SSAB to explore the development of fossil-free, high quality steel through SSAB’s HYBRIT initiative, which aims to replace coking coal with fossil-free electricity and hydrogen.
In its own operations, Volvo Cars’ says its European plants run on 100 per cent clean electricity, while its Torslanda plant in Sweden is fully climate neutral. 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 Swedish Krona ($AU146) for every tonne of carbon emissions from across its entire business. The aim is to be futureproof ahead of potential regulations and, under the scheme, every car project undergoes a ‘sustainability sense-check’ – CO2 cost is imposed for every anticipated tonne of carbon emissions through the car’s life cycle. The aim is to ensure that each car model would be profitable even under a strict carbon pricing scheme.
15 June 2022