CLIMATE CHANGE IS A MARKETING TOOL

CLIMATE CHANGE IS A MARKETING TOOL

THE VOLVO CHENGDU PLANT

NEWS STORIES ABOUT THE VOLVO CHENGDU PLANT ON JUNE 30, 2020

  1. VOLVO PRESS RELEASE: The 100 per cent renewable electricity mix in Chengdu is the result of a newly signed supply contract and 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 wider climate plan that aims to reduce the overall carbon footprint per car by 40 per cent between 2018 and 2025. By 2040, Volvo Cars aims to be a climate neutral company. The new electricity contract is also in line with broader ambitions in China to reduce carbon emissions from industry and reduce the carbon footprint resulting from energy generation. Until recently, the Chengdu plant already sourced 70 per cent of its electricity from renewable sources. The new contract addresses the last 30 per cent. Under the new contract, around 65 per cent of the electricity supply comes from hydropower, while the remainder comes from solar power, wind power and other renewable sources. “Our ambition is to reduce our carbon footprint through concrete, tangible actions,” said Javier Varela, head of industrial operations and quality. “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.” Volvo Cars is constantly working to reduce the carbon footprint of its manufacturing network and has reached a number of milestones in recent years. 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. At the Ghent plant in Belgium, Volvo Cars installed 15,000 solar panels in 2018, the first large-scale introduction of solar energy in its global manufacturing network. These and other measures are part of the climate plan Volvo Cars launched late last year, one of the most ambitious in the automotive industry. The centrepiece of the plan is Volvo Cars’ ambition to generate 50 per cent of global sales from fully electric cars by 2025, with the rest hybrids. Yet the plan goes beyond addressing tailpipe emissions through all-out electrification and also seeks to tackle carbon emissions in the company’s wider operations, its supply chain and through recycling and reuse of materials The 100 per cent renewable electricity mix in Chengdu is the result of a newly signed supply contract and 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 wider climate plan that aims to reduce the overall carbon footprint per car by 40 per cent between 2018 and 2025. By 2040, Volvo Cars aims to be a climate neutral company. The new electricity contract is also in line with broader ambitions in China to reduce carbon emissions from industry and reduce the carbon footprint resulting from energy generation. Until recently, the Chengdu plant already sourced 70 per cent of its electricity from renewable sources. The new contract addresses the last 30 per cent. Under the new contract, around 65 per cent of the electricity supply comes from hydropower, while the remainder comes from solar power, wind power and other renewable sources. “Our ambition is to reduce our carbon footprint through concrete, tangible actions,” said Javier Varela, head of industrial operations and quality. “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.” Volvo Cars is constantly working to reduce the carbon footprint of its manufacturing network and has reached a number of milestones in recent years. 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. At the Ghent plant in Belgium, Volvo Cars installed 15,000 solar panels in 2018, the first large-scale introduction of solar energy in its global manufacturing network. These and other measures are part of the climate plan Volvo Cars launched late last year, one of the most ambitious in the automotive industry. The centrepiece of the plan is Volvo Cars’ ambition to generate 50 per cent of global sales from fully electric cars by 2025, with the rest hybrids. Yet the plan goes beyond addressing tailpipe emissions through all-out electrification and also seeks to tackle carbon emissions in the company’s wider operations, its supply chain and through recycling and reuse of materials The 100 per cent renewable electricity mix in Chengdu is the result of a newly signed supply contract and 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 wider climate plan that aims to reduce the overall carbon footprint per car by 40 per cent between 2018 and 2025. By 2040, Volvo Cars aims to be a climate neutral company. The new electricity contract is also in line with broader ambitions in China to reduce carbon emissions from industry and reduce the carbon footprint resulting from energy generation. Until recently, the Chengdu plant already sourced 70 per cent of its electricity from renewable sources. The new contract addresses the last 30 per cent. Under the new contract, around 65 per cent of the electricity supply comes from hydropower, while the remainder comes from solar power, wind power and other renewable sources. “Our ambition is to reduce our carbon footprint through concrete, tangible actions,” said Javier Varela, head of industrial operations and quality. “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.” Volvo Cars is constantly working to reduce the carbon footprint of its manufacturing network and has reached a number of milestones in recent years. 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. At the Ghent plant in Belgium, Volvo Cars installed 15,000 solar panels in 2018, the first large-scale introduction of solar energy in its global manufacturing network. These and other measures are part of the climate plan Volvo Cars launched late last year, one of the most ambitious in the automotive industry. The centrepiece of the plan is Volvo Cars’ ambition to generate 50 per cent of global sales from fully electric cars by 2025, with the rest hybrids. Yet the plan goes beyond addressing tailpipe emissions through all-out electrification and also seeks to tackle carbon emissions in the company’s wider operations, its supply chain and through recycling and reuse of materials. The 100 per cent renewable electricity mix in Chengdu is the result of a newly signed supply contract and 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 wider climate plan that aims to reduce the overall carbon footprint per car by 40 per cent between 2018 and 2025. By 2040, Volvo Cars aims to be a climate neutral company. The new electricity contract is also in line with broader ambitions in China to reduce carbon emissions from industry and reduce the carbon footprint resulting from energy generation. Until recently, the Chengdu plant already sourced 70 per cent of its electricity from renewable sources. The new contract addresses the last 30 per cent. Under the new contract, around 65 per cent of the electricity supply comes from hydropower, while the remainder comes from solar power, wind power and other renewable sources. “Our ambition is to reduce our carbon footprint through concrete, tangible actions,” said Javier Varela, head of industrial operations and quality. “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.” Volvo Cars is constantly working to reduce the carbon footprint of its manufacturing network and has reached a number of milestones in recent years. 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. At the Ghent plant in Belgium, Volvo Cars installed 15,000 solar panels in 2018, the first large-scale introduction of solar energy in its global manufacturing network. These and other measures are part of the climate plan Volvo Cars launched late last year, one of the most ambitious in the automotive industry. The centrepiece of the plan is Volvo Cars’ ambition to generate 50 per cent of global sales from fully electric cars by 2025, with the rest hybrids. Yet the plan goes beyond addressing tailpipe emissions through all-out electrification and also seeks to tackle carbon emissions in the company’s wider operations, its supply chain and through recycling and reuse of materials.
  2. NEWS STORY #1: Chengdu with 100% renewable power. This change is estimated to reduce the plant’s carbon dioxide emissions by more than 11,000 tonnes per year. STORY: The Volvo Cars manufacturing plant in Chengdu, China is now powered by 100% renewable electricity, taking the company’s global renewable electricity mix in its manufacturing network to 80%. This change is estimated to reduce the plant’s carbon dioxide emissions by more than 11,000 tonnes per year. The company’s largest plant in China will be powered with 65% hydropower, while the remainder will come from solar, wind and other renewable sources. Javier Varela, Head of Industrial Operations and Quality, said: “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.” Volvo Cars has an ambition to reach climate-neutral manufacturing by 2025. [LINK] . 
  3. NEWS STORY#2: Volvo Factory In China Runs On 100% Renewable Energy at Chengdu Factory. STORY: Volvo Cars continues its march towards being a carbon-neutral manufacturing company by 2025 last week, when it announced that its vehicle assembly plant in Chengdu, China would make the switch to 100% renewable energy. The deal is part of a new energy supply contract that will rely heavily on hydroelectric and solar power cut the factory’s carbon emissions by more than 11,000 tons, annually. “Our ambition is to reduce our carbon footprint through concrete, tangible actions,” explains Javier Varela, head of industrial operations at Volvo. “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.” More than a simple PR-push, this move is just the latest for Volvo, following the plan to switch to hydrogen-fueled trucking between factories, rail-based vehicle transport to shipping ports, and a company-wide ban on single-use plastics — all of which follow in the footsteps of its pledge to introduce only electrified vehicles after 2019. [LINK[ .
  4. NEWS STORY #3: Volvo plant in Chengdu now runs entirely on renewable energy. STORY: Volvo Cars’ factory in Chengdu – the largest factory in China from the Swedish manufacturer – now runs entirely on renewable energy. This has increased the share of renewable energy use in the company’s global production network to 80 percent. The move to 100 percent renewable energy in Chengdu has been accomplished through the conclusion of a new energy contract, which will reduce the plant’s CO 2 emissions by more than 11,000 tons per year. It is the most recent step towards realizing Volvo’s ambition to be completely climate-neutral by 2025 in terms of production.
  5. NEWS STORY #4: Volvo Cars‘ largest plant in China is now completely powered by renewable electricity. STORY: Till recently, Volvo Cars plant in Chendu, China sourced about 70 per cent of its electricity supply from renewable sources.Volvo Cars‘ largest plant in China is now completely powered by renewable electricity. Volvo Cars‘ largest plant in China is now completely powered by renewable electricity Volvo Cars recently announced that its manufacturing facility in Chengdu, China is now completely powered by 100 per cent renewable electricity. The plant, which is the Swedish automaker’s biggest facility in China, sourced 70 per cent of its electricity from renewable sources until recently. However, the company recently signed a supply contract wherein it will now source all of its electricity from renewable sources. Volvo Cars noted that this move will cut down the Chengdu plant’s carbon dioxide (CO2) emissions by more than 11,000 tonnes every year. Oh and another interesting thing about this news is that with the Volvo Chengdu plant using 100 per cent renewable electricity, the company’s global renewable electricity mix in its manufacturing network has now increased to 80 per cent. Javier Varela, head of industrial operations and quality, Volvo Car Group, said, „Our ambition is to reduce our carbon footprint through concrete, tangible actions. 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.“ The company explained that under the purview of the new contract, roughly 65 per cent of the Chengdu plant’s electricity supply is sourced from hydropower, while the remainder comes from solar power, wind power, and other renewable sources. Volvo Cars has previously shared its plan to have climate neutral manufacturing by 2025, which, in turn, is a part of its overall goal to cut down the overall carbon footprint per car by 40 per cent between 2018 and 2025. And by 2040, the carmaker aims to be a completely climate neutral company. And the Chengdu plant now using only 100 per cent renewable energy is, of course, a huge step towards that. As a matter of fact, Volvo has achieved a variety of milestones in this regard in recent years; including the fact that all its manufacturing facilities in Europe have had a climate neutral electricity supply since 2008. It may also be interesting to note that Volvo Cars‘ engine plant in Skövde, Sweden was the first in the company’s network to become completely climate neutral — that was done in 2018.

CRITICAL COMMENTARY

  1. It is claimed that the merit of the hydroelectric power renewable energy innovation at the Volvo Chengdu factory is that it has reduced that plant’s fossil fuel emissions by 11,000 tons of CO2 per year. Since climate science normally quotes carbon emissions in carbon equivalent and not carbon dioxide, we convert CO2 to carbon as 11,000*12/44 = 3,000 tons of carbon per year of emissions saved by the use of hydroelectric power.
  2. The Volvo Chengdu plant makes 120,000 cars per year so on a per car basis the emissions saved is 11,000/120,000 = 0.091666 tons per year of emissions saved for each car made at Chengdu.
  3. The total global car production is estimated to be 73 million. Thus, globally, if all car manufacturing  around the world were upgraded to the Volvo hydroelectric process, the global savings on emissions would be 73 million times 0.091666 or 1825000 tons per year. Assuming that these measurements are in metric tons that translates to 0.001825 gigatons per year saved by the conversion of all car manufacturing globally to the Volvo hydroelectric power process.
  4. Currently, global fossil fuel emissions are estimated to be 10.13 gigatons per year (2018). The uncertainty in this estimate is plus or minus 1.5% that rounds out to plus or minus 0.152 gigatons per year.
  5. Here we note that the global savings on fossil fuel emissions of the Volvo hydroelectric power innovation at Chengdu of 0.091666 gigatons per year is less than the uncertainty in global fossil fuel emissions. Therefore, the net climate action benefit of the Volvo hydroelectric innovation is unlikely to be of any significance as a form of climate action.
  6. We conclude that the only real value of an insignificant global reduction of 0.091666 gigatons of carbon emissions {if all car manufacturing in the world converted to the Volvo hydroelectric innovation} is that the Volvo innovation can be sold as a high profile climate action initiative taken by an automobile manufacturer. This innovation and its marketing as a climate action initiative has value in the marketing of the Volvo name and its products as something that puts an automobile manufacturer on the right side of the climate movement doing their part with renewable innovations to save the planet. However, it has no interpretation in terms of the global emission equation of climate action because the relative amount of CO2 involved is insignificant and well within the error margin of global emissions.