Volvo Cars is first car maker to join SteelZero initiative

06 June 2022 | David Young

Volvo Cars has become the first car maker to sign up to the SteelZero initiative, which aims to increase demand for fossil-free steel and accelerate a transition to carbon neutrality in the global steel industry

Volvo Cars is first car maker to join SteelZero initiative

By signing up to SteelZero, Volvo Cars commits itself to stringent CO2-based steel sourcing requirements by 2030. By 2050, all the steel it sources should be net-zero steel, which is in line with the company's ambition to be climate neutral by 2040.

Kerstin Enochsson, chief procurement officer at Volvo Cars, said: "A sustainable approach to steelmaking is not just good news for the environment, it is also good business because it limits our exposure to future climate risks and regulations. We are pleased to join the SteelZero initiative and 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."

Jen Carson, head of industry at Climate Group, said: "Volvo Cars joining SteelZero marks an important step change in the global demand signal for low-emission and net-zero steel, and a pivotal moment for the automotive industry. This sector plays a central role in driving the net-zero transition of steel. It is supporting the creation of a decarbonised steel market internationally that can enable the sector to meet its own net-zero targets and deliver a product that is truly aligned with the climate agenda."

SteelZero was launched by the Climate Group in partnership with ResponsibleSteel, a steel industry-wide standard and certification body which Volvo Cars will also join. Through ResponsibleSteel, Volvo Cars gains access to reliable, third-party-verified and audited information about its steel supply chain and relevant sustainability credentials, helping to ensure it is responsibly sourced.