Volvo Cars, one of the most sought after and a respected car brand in the whole world has once again proved why it holds the reputation of being a top brand in the automotive industry. Volvo has adopted its new company principle of delivering to its customers the absolute Freedom to Move around – sustainably and safely, for both themselves as well as the environment. In order to realise this aim, Volvo has come up with a Green Finance Framework, under which it will issue green bonds or acquire green loans and these will help the company in funding not only its motivated climate plan but also the electrification strategy. The funds collected under this framework are organised into either climate related or environmental projects, with complete attention to detail. It will also state the selection criteria as well as identification, management and the usage of funds creating a reliable and transparent system for investors.
By issuing its first green bond, the company will support research in new electric car models, new vehicle platforms and powertrain tech; it will also look for ways to increase battery and electric car production. Cicero, after extreme scrutiny of this framework, rated it a Dark Green- the highest possible rating it can award. This also vouches for the company’s tactics to become a climate neutral car manufacturer by the year 2040. “Volvo Cars has one of the most ambitious climate plans in the auto industry. Our Green Finance Framework allows investors to participate in the transformation of Volvo Cars into an electric car maker,” states Håkan Samuelsson, Chief Executive of the company. Volvo has taken an all-round approach in tackling its emission situation, this is why it has not stopped at tailpipe emissions only, but will also deal with carbon emissions from its supply chain to manufacturing network. The opening stride short term goal towards its 2040 aim is to minimize its lifecycle carbon footprint per car by 40% by the year 2025.
In order to do this, the car brand will have to commit to the following reductions per car- 50% tailpipe emissions, 25% operational carbon emissions, 25% supply chain carbon emissions. “We have ambitious investment plans in coming years to turn our climate objectives into reality. I am happy we can now offer an opportunity to the financial community to make sustainability focused investments in Volvo Cars, as the financial industry plays a pivotal role in stimulating and supporting sustainable development,” said Carla de Geyseleer, Chief Financial Officer of Volvo, again focusing on the fact that their investment plans for the Green Finance Framework are solely for bringing their climate objectives to fruition. Pioneering in committing to an all-out electrification and offering a plug-in hybrid variant for every car model, Volvo has made clear how intensive its climate plans really are. Following this strategy, it will also launch the fully electric XC40 Recharge later in the year.
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