How Volvo is becoming the most sustainable car company in the world

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• Chinese plant powered by 100% renewable energy
• Volvo Cars aim to be a climate-neutral company
• Swedish engine plant was the first to become completely climate-neutral in 2018


Volvo Cars' Chengdu car plant is now powered by 100% renewable energy.

The plant in China's southwestern Sichuan province is the company's largest manufacturing facility. The achievement takes the company's global renewable electricity mix in its manufacturing network to 80%.

The 100% renewable electricity mix in Chengdu will reduce the plant's CO2 emissions by over 11 000 tonnes per year. 

It is the latest concrete step towards Volvo Cars' ambition to have climate-neutral manufacturing by 2025, part of a more extensive climate plan that aims to reduce the overall carbon footprint per car by 40% between 2018 and 2025.

READ | 7 safety features Volvo invented that you might not know about

Volvo Cars Chengdu car plant

Volvo Cars Chengdu Plant in China - Image: Volvo Cars
By 2040, Volvo Cars aim to be a climate-neutral company. Until recently, the Chengdu plant-sourced 70% of its electricity from renewable sources.

The new contract addresses the last 30%.The new electricity supply comes from hydropower (65%), while the remainder comes from solar power, wind power and other renewable sources.

"Securing a fully renewable electricity supply for our largest plant in China is a significant milestone and underlines our commitment to taking concrete, meaningful action," said Javier Varela, head of industrial operations and quality.

All its European plants have had a climate-neutral electricity supply since 2008, while the engine plant in Skövde, Sweden was the first in the company's network to become completely climate-neutral in 2018.

Compiled by Nikki Chennels

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