Green Financing

“Strengthening our Green Financing Framework is another important step in ensuring that capital flows directly to the areas where it can have the greatest positive climate impact’’

 

The financial community has a critical role to play in driving sustainable development, and we plan to continue to offer sustainable financing and investment opportunities to investors in the future as we shift towards full electrification. One step in this direction, is our ambition to have all outstanding debt in a green or sustainability-linked format.

 

Our Green Financing Framework lays the foundation of a broad range of Green Financing Instruments and summarises the principles under which we will utilise these in the future. It also provides an opportunity for investors to learn about our position to drive positive transformation within the automotive industry and support us in this journey.

 

Green Financing Framework

The Green Financing Framework

In March 2026, Volvo Cars published its updated Green Financing Framework to reflect its ambitious sustainability strategy and the integration of the most recent and advanced market practices and standards. The Framework defines how Green Financing Instruments are set up within Volvo Cars to financially accompany the Group’s sustainability journey towards its aim of reaching net zero greenhouse gas emissions by 2040.

 

Where feasible, Volvo Cars will prioritise projects that are considered to be aligned with the EU Taxonomy, with particular focus on those that meet the technical screening criteria for climate change mitigation. In assessing these projects, Volvo Cars will evaluate compliance with the substantial contribution, DNSH and minimum social safeguards criteria.

 

The Framework has been developed to align with the 2025 ICMA Green Bond Principles and the 2025 LMA, LSTA, APLMA Green Loan Principles.

 

Link to Framework

 

Second Party Opinion

S&P Global Ratings, a leading independent expert for the research-based assessment of Green Finance Frameworks has reviewed the Framework under its “Shades of Green” methodology and assessed its alignment with the ICMA Green Bond Principles. Volvo Cars’ updated Green Finance Framework has received the highest rating from CICERO with a "Dark Green" shading, similar to the first and second version of the Framework from 2020 and 2023.

Link to S&P Global Rating SPO

Reporting

Volvo Cars is committed to transparent allocation and impact reporting on any relevant Green Financing Instrument. The Group will publish the Green Financing Report on an annual basis, at least until full allocation of an amount equal to the net proceeds of the outstanding Green Financing Instrument(s), and thereafter in case of any material change to the allocation of the net proceeds. The Green Financing Report will be integrated in Volvo Cars’ Annual and Sustainability Report and / or as a standalone document. 

 

Bonds

 

 

Archive

Green Financing Framework 2023

SPO 2023

Green Financing Framework 2020

SPO 2020