Circular Economy
The world’s natural resources are limited. That’s why we are committed to becoming a circular company by 2040, maximizing the efficiency of our resource use in vehicles, components, and materials. We are determined to eliminate waste, use more recycled materials, and remanufacture and reuse parts.
« Achieving our goals undeniably depends on adopting the circular economy. »
Anders Kärrberg, responsable du développement durable à l’échelle mondiale
Planning for Circularity
To become a circular company by 2040, we must act now. Embracing a circular approach will benefit both the company and the planet. We have already outlined how, by 2025, we plan to save one billion Swedish kronor and reduce our emissions by 2.5 million tonnes through circular strategies.
Most businesses and consumers are still part of a linear economy — they extract raw materials, make a product, use it, and ultimately throw it away. In contrast, a circular economy maximizes resources through durable product design, reuse, and recycling.
From the very beginning, we consider the vehicle’s entire life cycle and how to maximize its value throughout that period. Once that cycle ends, the disassembly and recycling process yields high-quality raw materials.
Recycled Materials
One of our circular economy ambitions is to significantly increase the share of sustainable recycled and bio-based materials in our vehicles by 2025.
After reviewing all the emissions for which we are directly or indirectly responsible, we realized that various initiatives need to be implemented to drive real change. This is what our action plan for reducing CO2 emissions looks like.
Our Ambitions for 2025
Recycled or Bio-Based Plastics
Recycled Aluminum
Recycled Steel
More Remanufacturing
Compared to producing new parts, remanufactured parts require about 85% less raw material and 80% less energy. We currently remanufacture 36 different component groups, including engines, gearboxes, turbochargers, and clutches.
In 2021, we avoided producing over 4,000 tonnes of CO2 by remanufacturing more than 37,000 parts.
Reducing Production Waste
In 2021, 96% of our global production waste was recycled — helping us avoid generating additional carbon emissions and keeping valuable materials in circulation. This also allowed us to reduce the amount of raw materials needed.