Volvo Cars cuts CO2 emissions by 31%, advances global sustainability push

Volvo Cars has reported significant progress in its sustainability journey, cutting CO2 emissions per car by 31% compared to its 2018 baseline, according to its Annual and Sustainability Report 2025.

A key reason behind this reduction is the brand’s accelerating shift towards electrification. Electrified models, including plug-in hybrids, now result in 46% of global sales, helping reduce tailpipe emissions by 42%.

Strong Gains in Clean Manufacturing

Volvo Cars is also reducing the environmental impact of its production footprint:

• 7 out of 9 plants now run on climate-neutral energy
• These account for 87% of total operational energy use
• Water consumption per car has dropped by 29%

The company has also exceeded its materials target, with the EX60 using 27% recycled and bio-based materials, surpassing its 25% goal.

India Initiatives

In India, Volvo Cars India is aligning with global sustainability goals through local environmental efforts.

Under its Reverse Project, the company has:

• Planted 35,359 native trees in Ghaziabad
• Achieved a 92% survival rate
• Created an urban forest capable of absorbing 42,571 tonnes of CO2
• Generating nearly 30,964 tonnes of oxygen.

The initiative is now expanding, with over 20,000 trees being planted at Matri Van along the Gurugram-Faridabad highway in the Aravalli region.

Dealerships Go Green

Volvo’s sustainability push extends to its retail network as well. Dealerships are increasingly adopting:

• Solar energy
• Water recycling systems
• Responsible waste management practices

Leadership Comment

“Sustainability remains central to Volvo Cars’ vision globally, and in India, we are committed to supporting these ambitions through initiatives such as the Reverse Project and G.R.E.E.N Dealerships,” said Jyoti Malhotra, Managing Director, Volvo Car India.

He added that these initiatives support the company’s broader goal of becoming a net-zero greenhouse gas emissions company by 2024.

The Bigger Picture

Founded in 1927, Volvo Cars sold over 710,000 vehicles globally in 2025, with electrified models making up nearly half its volumes.

The company continues to push towards becoming a fully electric car maker, while steadily reducing its carbon footprint.