A carbon-neutral network for Volvo
By Marcus Williams2022-04-12T10:16:00
Volvo Cars is making good on its commitments at COP26 to cut carbon from its supply chain operations as well as the vehicles it is making, including through an internal pricing mechanism
Volvo states that a CO2 cost is imposed for every anticipated tonne of carbon emissions throughout the car’s lifecycle. More specifically, with regard to the logistics involved per unit, each car made in 2021 generated 1.46kg of CO2 related to the transport used for both inbound parts shipments and outbound final delivery of the vehicle.
To more accurately measure the emissions used, Volvo is capturing real-time data and has created a digital twin of its supply chain network. With that it can not only calculate and analyse the CO2 emissions but also analyse the network from different aspects and run different scenarios to help make decisions on improvements.
The carmaker is investing extensively across operations to first reduce the total carbon footprint per average car by 40% between 2018 and 2025, and secondly to reach full climate neutrality by 2040.