What Company is This?
Volvo was founded in 1927 in Gothenburg, Sweden. Today, Volvo Group is a global company employing 99,000 people in almost 180 markets, producing trucks, buses, construction equipment, and marine and industrial engines under 14 brands. Volvo Group is headquartered in Sweden and listed on the Stockholm stock exchange.
What are the results?
Volvo Group scores 27%, comprising 30% for General Supply Chain Sustainability and 24% for Steel Supply Chain Sustainability. The company scores 25% for Target-Setting and Progress and 23% for Supply Chain Levers in the General Supply Chain Sustainability category, and 0 for Disclosure, 24% for Target-Setting and Progress and 37% for Supply Chain Levers in the Steel Supply Chain category.
What are the highlights?
Volvo Group earns only partial points for its climate targets because it does not disclose a target for upstream emissions, and its net-zero 2040 target is not SBTi-verified. It is also awarded partial points for: requiring science-based targets from its suppliers (though it does not disclose the share of suppliers that have actually set them), engaging with and target-setting for suppliers regarding greenhouse gas emissions and other environmental impacts and reporting the number of supplier audits, addressing deforestation on corporate policy level, specifying that sustainability performance is a key indicator in supplier qualification, and requiring FSC or PEFC certification of applicable products.
For the Steel Supply Chain category, Volvo Group gets partial points for: committing to purchase 10% near-zero steel by 2030, reporting the share of materials recycled (including steel), being a member in the First Movers Coalition, collaborating with SSAB and signing an agreement with Stegra for the procurement of near-zero emission steel, and disclosing that the vast majority of its metal waste is recycled.
Where can the company improve?
In addition to not disclosing the share of suppliers that have set science-based targets, despite this being a requirement for suppliers, Volvo Group scores zero points in the General Supply Chain category for not requiring water-reduction targets from suppliers or for having specific requirements to improve water management in its supply chain. In the Steel Supply Chain Sustainability category, Volvo Group scores zero points for failing to disclose disaggregated greenhouse gas emissions for steel, omitting the share of lower-emission or fossil-free steel in its production, lacking a target for the use of recycled steel, and opting out of membership of ResponsibleSteel or engaging suppliers about ResponsibleSteel certification.
