A Combined Effort – Volvo Financial Services Strengthens the Chain

by Jan/Feb 2024


Volvo Financial Services, the captive finance arm of the Volvo Group, provides financial services and solutions that meet the needs of its customers both today as well as into the future. With innovation as a centerpiece of its mission, Volvo Financial Services, which works collaboratively with all brands and business areas within the Volvo Group, supports society in its adoption of sustainable transport and equipment solutions, helping businesses achieve potential growth while making a positive, lasting impact on the environment.

Safe, Sustainable and Productive Solutions
When it comes to ESG initiatives, Volvo Financial Services is committed to helping drive the transition to safe, sustainable and more productive transport and infrastructure solutions. The Volvo Group’s target is to have 35% of its vehicle sales be fully electric by 2030. By 2040, Volvo Group’s ambition is to be net-zero in its value chain, enabling customers to have zero-emissions fleets by 2050.

Three Pillars of ESG: Climate, Resources and People
Volvo Financial Services’ approach to ESG is fully aligned with the Volvo Group and focuses on three pillars: climate, resources and people. For climate, Volvo Financial Services is committed to the Paris Agreement and is driving toward a net zero portfolio. In addition, the team is actively working to reduce its direct environmental footprint.

Around resources, the company is working toward a step change in circularity and is committed to help preserving biodiversity. Lastly, for people, Volvo Financial Services aspires to use its full potential to be the employer of choice and engage in responsible behavior across the value chain. Volvo Financial Services also seeks to make a positive impact in the communities it operates in and has made a commitment to respect human rights.

Innovative Solutions in a Sustainable Framework
A key part of Volvo Financial Service’s sustainability and ESG program is to implement a sustainable lending framework. In this framework, the team must consider the impact of lending activities on people and the environment and assess new financial and strategic risks and/or opportunities posed by sustainability matters. By incorporating ESG factors into its credit decision process and applying proportionate due diligence, Volvo Financial Services will be in a better position to assess its impacts and risks. At the same time, Volvo Financial Services strives to find new and innovative solutions and services to help customers achieve success on their own sustainability journeys.

Accelerating Transformation Together
Volvo Financial Services embraces ESG criteria not just for compliance or risk management, but as an opportunity to accelerate its transformation to fossil-free transport and create value for its customers, for the Volvo Group and for society overall. Accomplishing these criteria can only be achieved in the equipment finance industry by working together. It is imperative for all aspects of the value chain collaborate to accelerate the industry’s transition to fossil-free transport solutions. Whether that means building components, truck and equipment or, in Volvo Financial Services’ case, helping customers
acquire these solutions, everyone must all do their part to accelerate and scale decarbonization efforts.

The transition toward fossil-free transport solutions is well under way, and the Volvo Group has several product offers that can significantly reduce its customers’ carbon footprint. Volvo Financial Services’ role is to help customers more easily acquire these products through innovative new offers and business models. By alleviating some of the concerns that come with moving to any new technology, Volvo Financial Services helps provide peace of mind to its customers. •

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