VOLVO CARS has become the first AUTOmaker to sign up to a SteelZero initiative intended to increase demand for fossil-free steel and accelerate a transition to carbon neutrality in the global steel industry.
By doing so, Volvo Cars says it has committed to having stringent CO2-based steel-sourcing requirements by 2030. By 2050, all the steel it sources should be net-zero steel, in line with the company’s ambition to be climate neutral by 2040.
Steel production is a major source of CO2 emissions from the auto industry, averaging 33% of all production-related emissions for a new Volvo through 2021. Globally, steel production is responsible for around seven percent of all greenhouse gas emissions.
Kerstin Enochsson, chief procurement officer at Volvo Cars, told The Corner in a media rlease: “A sustainable approach to steelmaking is not only good news for the environment but also good business as it will limit future climate risks and regulations.
“We’re pleased to join the SteelZero initiative to support its ambitions to transform the steel industry. By signalling our demand for responsibly sourced low- and zero-carbon steel, we aim to help drive an increased supply to our sector.”