FULLTEXT DEL 6 AV 6
Årsredovisning 2025
Our actions Prevention and detection of corruption and bribery At Volvo Cars, we manage anti-corruption as an integral part of our compliance program. Our Anti-Corruption Policy and Directive out - line the framework for preventing and detecting bribery and corrup - tion across our operations and among third parties. The key elements of our anti-corruption program include: • Company-wide and targeted risk assessments • Guidance and procedures for handling situations where red flags arise • Training courses and regular communications from top manage - ment to reinforce our zero-tolerance policy regarding corruption • Risk-based due diligence for business partners, charitable contributions and sponsorships Functions with higher exposure, identified through corruption risk mapping, receive mandatory, targeted training. Such functions-at- risk, including Public Affairs, Regulatory Affairs, Executive Manage - ment as well as employees interacting with government, are covered by the training program, where employees receive and complete mandatory anti-corruption training through annual Code of Conduct e-learning, as well as risk-specific anti-corruption and anti-bribery training. In 2025, ten operations were selected for anti-corruption risk assessments, with mitigating measures to be implemented where necessary. In addition, we foster a strong Speak Up culture. Our whistleblow - ing channel, the Tell Us reporting line, is available to both employees (via the intranet) and external stakeholders (via our company website). As part of our detection measures, we conduct ongoing monitoring to safeguard compliance within our operations and value chain. Furthermore, the Compliance Investigation Unit and the Global Audit Office carry out investigations and audits, and, where required, recommend and monitor corrective actions. Our actions aim to prevent, detect, and respond to identified cases of corruption and bribery. This is an ongoing effort, and it is challenging to set targets and measure progress, as fewer reported cases do not necessarily mean fewer actual cases. We monitor and act on reported incidents, and we also provide training to raise awareness among our employees and within our value chain to improve the completeness of reporting. In 2025 no legal proceedings related to corruption were initiated against Volvo Cars or any of its employees, and there were no con - victions for violations of anti-corruption or anti-bribery laws, and no related fines. Compliance & Ethics training, awareness and communication We provide training and communication to ensure that our employ - ees and business partners understand, follow and act according to our ethical and responsible business conduct. We develop trainings to both all our employees and managers, as well as region- or role specific groups. We also provide targeted risk trainings to functions identified as being exposed to specific compliance risks. The impact of the trainings is measured through employee surveys, compliance case statistics, training completion rates and similar KPIs, and is reported as part of the C&E Program status reports. Examples of trainings performed 2025 include: • Mandatory Code of Conduct e-learning course for all non-pro - duction employees, focused on anti-corruption, competition law and Speak Up culture. This training was also provided to all mem - bers of the Board of Directors. In addition, we provided targeted trainings to leadership in responsible business conduct. • Compliance & Ethics modules in our internal leadership programs. • A responsible business discussion kit, focused on conflicts of interest, that helps leaders initiate responsible business discus - sions with their teams. • Targeted training on the previously mentioned Compliance & Ethics risk areas, training more than 7,500 people. • Held a “Compliance Awareness Day” for the procurement func - tion with focus on Data Protection, Trade sanctions & export control and Anti-corruption risk areas. • Targeted trainings in our Anti-Corruption Policy to ‘at risk employees‘. During 2025, the share of employees who completed the Code of Conduct training decreased slightly. In 2026, the mandatory Code of Conduct training will be included as a performance target assigned to individual employees in the global people performance tool, which is expected to drive an increase in completion rates across the organisation. Data protection incidents 2025 2024 Substantiated privacy complaints addressed by the DPO 7 6 Data protection authority investigations managed by the DPO 1 6 Substantiated personal data incidents 58 71 Training and Communication 2025 2024 Employees (non-production) trained in our Code of Conduct, % 88 90 Number of production sites where employees (production) were trained in our Code of Conduct 4 4 Number of employees having received targeted (‘face-to-face’) compliance training 7,741 10,541 Functions-at-risk covered by anti-corruption training programmes, % 100 — Corruption and bribery incidents 2025 2024 Convictions for violation of anti-corruption and anti-bribery laws — — Amount of fines for violation of anti-corruption and anti-bribery laws, SEK — — OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 204 VOLVO CAR GROUP / SUSTAINABILITY / GOVERNANCE INFORMATION ===== SIDA 205 ===== Management of relationships with suppliers including payment practices Volvo Cars views supplier relationships as long-term partnerships built on transparency, shared values and continuous improvement. Our Code of Conduct for Business Partners forms an integral part of the agreements we make with our suppliers and other business partners. The company’s approach includes: • Collaborative engagement: For example, in business review meetings with our suppliers, we strive to co-develop and enhance our relationship and performance across multiple areas, including sustainability. • Risk based due diligence approach to supplier selection: When evaluating new suppliers for direct material sourcing, we assess the following social and environmental criteria: – Human rights and labour practices: Suppliers must comply with our Code of Conduct for Business Partners. – Environmental impact: Suppliers are evaluated on their envi - ronmental impact including carbon footprint, water usage, waste management and biodiversity impact. – Raw Materials of Concern (RMoC): Special attention is given to suppliers of high-risk materials such as cobalt, lithium and rare earth elements. – Proactive risk monitoring: We continuously monitor supply chain risks – such as financial and sustainability risks, particu - larly in conflict-affected and high-risk areas – using both internal assessments and third-party data. – Corrective action and escalation: If a supplier is found to be non-compliant with Volvo Cars’ sustainability standards, a structured process is initiated, including engagement, remedia - tion plans and, if necessary, termination of the relationship. Supplier relations and payment terms are intertwined, as payment terms are crucial for strong supplier partnerships. Our standard contract payment terms are 60 days month end (production mate - rial) or net (other). Other payment terms could be agreed upon depending on certain set-ups, financial situation and depending on types of goods and shipment time. We also provide the possibility for suppliers to be part of our Supply Chain Finance Programme (factoring) that helps free cash for suppliers. Considering all this, payment rate is above 91 (93) per cent and the average number of days on which we pay our suppliers amounts to 68 (72) days, calculated as the days payable outstanding (DPO). Previously, we have signed an agreement with the Swedish Initia - tive for Payment Terms, in compliance with government recommen - dations to shorten supplier payment times in domestic trade suppli - ers with a focus on small and medium-sized enterprises. At the end of 2025, there were no known material outstanding legal proceedings for late payments raised for management’s attention. Policy influence and advocacy We actively support policy development and advocate positive change in a wide range of areas. In collaboration with our stakehold - ers, through public advocacy and participation in trade associations, we promote: • Climate action that accelerates the transition to a low-carbon economy. • Circularity in the automotive sector. • Electrification in the automotive industry by improving charging networks, accelerating decarbonisation, expanding climate- neutral energy provision and enabling smart and bi-directional charging. • Safe digital transformation in our sector through policy that enables technological development, including the international transfer of non-personal product data. • Free trade agreements that solidify and diversify supply chains and ensure fair competition. • Open and collaborative research and development that supports reskilling and upskilling automotive workers. • International human rights standards and guidelines. Volvo Cars does not make financial contributions to political parties. In accordance with our Anti-Corruption Policy, we do not use com - pany assets for political influence. Although not legally obliged, we are voluntary members of trade associations and organisations that engage in policy influence and advocacy. In 2025, total annual contributions to those organisations amounted to SEK 14.5 (20.5) m. Some of the largest recipient organisations include the Alliance for Automotive Innovation, E-Mobility Europe, Mobility Sweden and the Society of Motor Manufacturers and Traders. No members of the Board of Directors or EMT have held roles in public administration or regulatory bodies during the two years preceding the 2025 reporting period. The EMT oversees the compa - ny’s policy engagement and lobbying activities, including business ethics and legal compliance. To read more about our lobbying activities, consult the EU Transparency Register, under registration number 74574295642-60. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 205 VOLVO CAR GROUP / SUSTAINABILITY / GOVERNANCE INFORMATION ===== SIDA 206 ===== Other information Restatements PAGE 207–208 Index of ESRS Disclosure Requirements PAGE 209–210 List of datapoints that derive from other EU legislation PAGE 211–212 Statement on due diligence PAGE 213 Auditor’s limited assurance report on Volvo Cars’ statutory Sustainability Statement PAGE 214–215 Volvo Cars and the UN Sustainable Development Goals PAGE 216 Green Financing Report PAGE 217–218 Auditor’s limited assurance report on Volvo Cars’ Green Financing Report PAGE 219 OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 206 VOLVO CAR GROUP / SUSTAINABILITY ===== SIDA 207 ===== Restatements General Compared with previous year’s report, updates to the reporting scope and underlying data capabilities have been implemented. These changes require corresponding adjustments to historical fig - ures to ensure comparability across periods. In addition, identified inaccuracies in prior years have been corrected and the historical data has been updated accordingly. The base year values for 2018 and 2019, which serve as the foundation for measuring progress toward our 2025 and 2030 ambitions, have been updated accord - ingly. Enhanced data model This year, we advanced our data capabilities to more precisely cal - culate the emissions from materials and share of recycled materials in our cars. The data model connects the detailed material composi - tion of every part that makes up every Volvo to more precise generic and supplier specific data. This allows for a more detailed material breakdown for each part in each Volvo car produced, and enables the application of CO 2 claims on materials. Scope 3 greenhouse gas emissions Waste generated in operations Due to multiple disposal routes of waste, a material amount of non-hazardous waste was not reported during 2024. The metric has been updated to reflect actual disposal volumes. Additionally, emission factors applied to waste historically have been corrected due to errors in published datasets from UK DEFRA. The updated emission factors have been applied retrospectively to reflect a true and fair view of the greenhouse gas emissions related to waste generated in operations. Purchased goods & services, use of sold products and end-of-life treatment Historical numbers reported in the category Purchased Goods & Services have been updated with more precise data. Vehicle dependent categories, including Purchased Goods & Services and Use of Sold Products have been recalculated to align with the updated number of produced vehicles in historical years. Disaggre - gation of use of sold products is updated accordingly. Downstream leased assets Emissions previously reported in this category have been recatego - rized and accounted for in Scope 3 category 1 purchased goods & services. Franchises Improved methodology for collecting and compiling data from thou - sands of retailers have resulted in an adjustment of reported values. 2025 and 2030 ambitions The ambition to reduce tailpipe emissions and Scope 3 SBTi target have been recalculated to account for updates in the category Use of Sold Products. The ambition to minimise emissions from materi - als has been recalculated to account for updates in the category Purchased Goods & Services. The ambition to reduce operational emissions has been recalculated to account for changes in the cate - gories waste generated in operations, downstream leased assets and franchises. The overarching ambitions to reduce emissions per car and to reach net zero greenhouse gas emissions across the value chain have been recalculated to account for changes to absolute emissions in historical years. All of above have been recalculated to account for the updated number of produced cars per year. Recycled and bio-based materials and total materials in fleet As a result of the enhanced data model, data reported for 2024 have been adjusted to more accurately reflect the share of recycled and bio-based materials in new models as well as in our fleet. It has also resulted in an updated amount for the metric total materials in fleet. Own workforce characteristics During 2025, the employee data collection process was strength - ened to ensure completeness of all entities within Volvo Cars, and alignment with the scope of consolidation. This scope includes those entities excluded from the central HR system. The resulting variance in headcount for 2024 is approximately 3,000 employees and 560 non-employees. Comparative figures have not been restated for any metrics within own workforce due to this scope, as historical data for these entities was not collected in prior periods and cannot be reconstructed retrospectively with sufficient accu - racy and completeness. In 2024, the reported number for non-employees (consultants) was 9,665. However, this number included 4,766 consultants who, according to our ESRS-aligned definition, do not fall within the non-employee category. Comparative figures have been restated. Definitions of non-employees applied in this statement can be found on page 187. Gender distribution in management In 2025, we implemented a global job framework that redefined the classification of senior leaders, introducing a more competence - based and transparent model. The new classification of senior lead - ers resulted in an updated breakdown of gender and age for women and men in senior leadership, as well as the overall totals. Compara - tive figures have been updated accordingly in the table presented on page 186. In addition, the comparative figures for the entity-specific disclosure women in leading position has been updated. The restate - ments are disclosed on an aggregated level in the table below. Performance and development reviews In 2024, the share of employees participating in regular perfor - mance and development reviews was determined based on the annual merit review process. To align with ESRS, the metrics are prepared using information from our Continuous Dialogue process, our formal framework for ongoing performance and development reviews. This methodology shift reflects a broader scope, as it now goes beyond the merit review process and now also include formal development dialogues for all participating employees. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 207 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 208 ===== After restatement Prior to restatement 2024 2018 2024 2018 Greenhouse gas emissions, tonnes CO 2 Purchased goods and services 11,019,000 9,793,000 14,363,000 10,435,000 Waste generated in operations 3,000 3,000 5,000 9,000 Use of sold products 24,387,000 29,583,000 24,390,000 29,650,000 Downstream leased assets 0 0 4,000 4,000 Franchises 379,000 748,000 385,000 747,000 GHG emission reduction ambitions 1) Reduce CO 2 emissions across the value chain 10 41,870,000 4 42,589,000 Reduce CO 2 emissions per car 32 36,002,000 26 36,724,000 Reduce tailpipe emissions per car 46 23,715,000 46 23,785,000 Reduce emissions from materials per car 1 9,793,000 –21 10,435,000 Reduce operational emissions per car 25 2,494,000 24 2,504,000 Science Based Targets initiative 1) 2) Reduce scope 3 emissions from use of sold products 26 30,743,000 26 30,694,000 Resource inflow and outflow Recycled and bio-based materials in new models, % 18 — 15 — Recycled and bio-based materials in fleet, % 20 — 10 — Total material in fleet, kilo tonnes 1,465 — 1,470 — Total waste generated, tonnes 222,061 — 208,196 — whereof metal, tonnes 148,308 — 134,515 — Non-hazardous waste directed to recycling, tonnes 197,263 — 183,404 — Own workforce characteristics, headcount Non-employees 4,899 — 9,665 — Gender distribution in management, % Women in senior leadership 29.7 — 31.1 — Men in senior leadership 70.3 — 68.9 — Women in leading positions 30.8 — 30.9 — Performance and development reviews, % White collars 96 — 100 — Women 95 — 100 — Men 96 — 100 — 1) The 2018 figure represents the base year value in tonnes of CO 2. The 2024 figure shows the percentage change relative to the base year. 2) The 2018 column reflects the Science Based Targets initiative base year, representing 2019 data. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 208 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 209 ===== Index of ESRS Disclosure Requirements Disclosure Requirement Description ESRS 2 GENERAL DISCLOSURES Page BP-1 General basis for preparation of the Sustainability Statement 133 BP-2 Disclosures in relation to specific circumstances 133 GOV-1 The role of the administrative, management and supervisory bodies 140 GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies 140 GOV-3 Integration of sustainability-related performance in incentive schemes 143 GOV-4 Statement on due diligence 213 GOV-5 Risk management and internal controls over sustainability reporting 141 SBM-1 Strategy, business model and value chain 134 SBM-2 Interests and views of stakeholders 138 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 134, 145 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities 145 IRO-2 Disclosure Requirements in ESRS covered by the undertaking's Sustainability Statement 147 ESRS E1 CLIMATE CHANGE Page E1-1 Transition plan for climate change mitigation 154 E1-2 Policies related to climate change mitigation and adaption 155 E1-3 Actions and resources in relation to climate change policies 156 E1-4 Targets related to climate change mitigation and adaptation 158 E1-5 Energy consumption and mix 161 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 159 E1-7 GHG removals and GHG mitigation projects financed through carbon credits Not applicable E1-8 Internal carbon pricing 158 E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities Phase-in Entity-specific Electrified car retail sales 156 Entity-specific Regional efficiency metrics 157 ESRS E2 POLLUTION Page E2-1 Policies related to pollution 165 E2-2 Actions and resources related to pollution 165 E2-3 Targets related to pollution 166 E2-4 Pollution of air, water and soil 165 E2-5 Substances of concern and substances of very high concern 165 E2-6 Anticipated financial effects from pollution-related risks and opportunities Phase-in Disclosure Requirement Description ESRS E3 WATER AND MARINE RESOURCES Page E3-1 Policies related to water and marine resources 168 E3-2 Actions and resources related to water and marine resources 168 E3-3 Targets related to water and marine resources 169 E3-4 Water consumption 168 E3-5 Anticipated financial effects from water and marine resources-related risks and opportunities Phase-in ESRS E4 BIODIVERSITY AND ECOSYSTEMS Page E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model Phase-in E4-2 Policies related to biodiversity and ecosystems 171 E4-3 Actions and resources related to biodiversity and ecosystems 171 E4-4 Targets related to biodiversity and ecosystems 172 E4-5 Impact metrics related to biodiversity and ecosystems 171 E4-6 Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities Phase-in Entity-specific Estimated impact on biodiversity from Volvo Cars’ value chain, species.year 171 ESRS E5 RESOURCE USE AND CIRCULAR ECONOMY Page E5-1 Policies related to resource us and circular economy 174 E5-2 Actions and resources related to resource us and circular economy 175 E5-3 Targets related to resource us and circular economy 176 E5-4 Resource inflows 176 E5-5 Resource outflows 177 E5-6 Anticipated financial effects from material resource use and circular economy-related risks and opportunities Phase-in Entity-specific Component value retention 177 Entity-specific Material breakdown in fleet 177 OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 209 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 210 ===== Disclosure Requirement Description ESRS S1 OWN WORKFORCE Page S1-1 Policies related to own workforce 182 S1-2 Processes for engaging with own workers and workers' representatives about impacts 182 S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 183 S1-4 Taking action on material impacts and approaches to mitigating material risks and pursu - ing material opportunities related to own workforce, and effectiveness of those actions and approaches 183 S1-5 Targets related to managing material impacts, advancing positive impacts, and managing risks and opportunities 186 S1-6 Characteristics of the undertaking’s employees 181 S 1-7 Characteristics of non-employee workers in the undertaking’s own workforce 181 S1-8 Collective bargaining coverage and social dialogue 184 S1-9 Diversity metrics 185 S1-10 Adequate wages 185 S1-11 Social protection 184 S1-13 Training and skills development metrics 185 S1-14 Health and safety metrics 184 S1-15 Work-life balance metrics 184 S1-16 Remuneration metrics 185 S1-17 Incidents, complaints and severe human rights impacts 186 Entity-specific Employee survey results 182 Entity-specific Performance and career development reviews 185 Entity-specific Women in management 186 ESRS S2 WORKERS IN THE VALUE CHAIN Page S2-1 Policies related to value chain workers 190 S2-2 Processes for engaging with value chain workers about impacts 190 S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns 190 S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions 191 S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 194 Entity-specific SAQ compliant suppliers 191 Entity-specific Audits 193 Entity-specific RMAP compliant smelters 193 Index of ESRS Disclosure Requirements, continued. Disclosure Requirement Description ESRS S4 CONSUMERS AND END-USERS Page S4-1 Policies related to consumers and end-users 196, 197 S4-2 Processes for engaging with consumers and end-users about impacts 196, 197 S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 196, 202 S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions 197, 198 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 197, 198 ESRS G1 BUSINESS CONDUCT Page G1-1 Business conduct policies and corporate culture 201 G1-2 Management of relationships with suppliers 205 G1-3 Prevention and detection of corruption and bribery 204 G1-4 Incidents of corruption or bribery 204 G1-5 Political influence and lobbying activities 205 G1-6 Payment practices 205 Entity-specific Cases reported to the C&E Office 202 Entity-specific Competition law and data protection incidents 204 Entity-specific Training and Communication (in addition to Disclosure Requirement G1-3 §21 b) 204 OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 210 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 211 ===== List of datapoints that derive from other EU legislation ESRS Disclosure Requirement Data point Description SFDR Pillar 3 Benchmark Regulation Climate Law Page ESRS 2: General disclosures GOV-1 21 (d) Board's gender diversity x x 140 GOV-1 21 (e) Percentage of board members who are independent x 140 GOV-1 30 Statement on due diligence x 213 SBM-1 40 (d) i Involvement in activities related to fossil fuel activities x x x Not applicable SBM-1 40 (d) ii Involvement in activities related to chemical production x x Not applicable SBM-1 40 (d) iii Involvement in activities related to controversial weapons x x Not applicable SBM-1 40 (d) iiv Involvement in activities related to cultivation and production of tobacco x Not applicable ESRS E1: Climate Change ESRS E1-1 14 Transition plan to reach climate neutrality by 2050 x 154 ESRS E1-1 16 (g) Undertakings excluded from Paris-aligned Benchmarks x x 155 ESRS E1-4 34 GHG emission reduction targets x x x 158 ESRS E1-5 37 Energy consumption and mix x 161 ESRS E1-5 38 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) x 161 ESRS E1-5 40–43 Energy intensity associated with activities in high climate impact sectors x 161 ESRS E1-6 44 Gross Scope 1, 2, 3 and Total GHG emissions x x x 159 ESRS E1-6 53–55 Gross GHG emissions intensity x x x 159 E S R S E1-7 56 GHG removals and carbon credits x Not applicable ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks x Phase-in ESRS E1-9 66 (a); 66 (c) Disaggregation of monetary amounts by acute and chronic physical and Location of significant assets at material physical risk x Phase-in ESRS E1-9 67 (c) Breakdown of the carrying value of its real estate assets by energy-efficiency classes x Phase-in ESRS E1-9 69 Degree of exposure of the portfolio to climate-related opportunities x Phase-in ESRS E2: Pollution ESRS E2-4 28 Amount of each pollutant listed in Annex II of the EPRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, x 165 ESRS E3: Water and marine resources ESRS E3-1 9 Water and marine resources x 168 ESRS E3-1 13 Dedicated policy x Not applicable ESRS E3-1 14 Sustainable oceans and seas x Not applicable ESRS E3-4 28 (c) Total water recycled and reused x 168 ESRS E3-4 29 Total water consumption in m 3 per net revenue on own operations x 168 ESRS E4: Biodiversity and ecosystems ESRS 2 - SBM-3 - E4 16 (a) i x 172 ESRS 2 - SBM-3 - E4 16 (b) x 172 ESRS 2 - SBM-3 - E4 16 (c) x 172 ESR E4-2 24 (b) Sustainable land / agriculture practices or policies x Not applicable ESRS E4-2 24 (c) Sustainable oceans / seas practices or policies x Not applicable ESRS E4-2 24 (d) Policies to address deforestation x 171 ESRS E5: Resource use and circular economy ESRS E5-5 37 (d) Non-recycled waste x 178 ESRS E5-5 39 Hazardous waste and radioactive waste x 178 OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 211 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 212 ===== ESRS Disclosure Requirement Data point Description SFDR Pillar 3 Benchmark Regulation Climate Law Page ESRS S1: Own workforce ESRS 2 - SBM-3 - S1 14 (f) Risk of incidents of forced labour x 181 ESRS 2 - SBM-3 - S1 14 (g) Risk of incidents of child labour x 181 ESRS S1-1 20 Human rights policy commitments x 182 ESRS S1-1 21 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8 x 182 ESRS S1-1 22 Processes and measures for preventing trafficking in human beings x 182 ESRS S1-1 23 Workplace accident prevention policy or management system x 182 ESRS S1-3 32 (c) Grievance/complaints handling mechanisms x 183 ESRS S1-14 88 (b) and (c) Number of fatalities and number and rate of work-related accidents x x 184 ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness x 184 ESRS S1-16 97 (a) Unadjusted gender pay gap x x 185 ESRS S1-16 97 (b) Excessive CEO pay ratio x 185 ESRS S1-17 103 (a) Incidents of discrimination x 186 ESRS S1-17 104 (a) Non-respect of UNGPs on Business and Human Rights and OECD x x 186 ESRS S2: Workers in the value chain ESRS 2 - SBM-3 - S2 11 (b) Significant risk of child labour or forced labour in the value chain x 190 ESRS S2-1 17 Human rights policy commitments x 190 ESRS S2-1 18 Policies related to value chain workers x 190 ESRS S2-1 19 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines x x 143 ESRS S2-1 19 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8 x 143 ESRS S2-4 36 Human rights issues and incidents connected to its upstream and downstream value chain x 191 ESRS S3: Affected communities ESRS S3-1 16 Human rights policy commitments x Not material ESRS S3-1 17 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines x x Not material ESRS S3-4 36 Human rights issues and incidents x Not material ESRS S4: Consumers and end-users ESRS S4-1 16 Policies related to consumers and end-users x 196, 197 ESRS S4-1 17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines x x 143 ESRS S4-4 35 Human rights issues and incidents x 196 ESRS G1: Business conduct ESRS G1-1 10 (b) United Nations Convention against Corruption x Not applicable ESRS G1-1 10 (d) Protection of whistleblowers x Not applicable ESRS G1-4 24 (a) Fines for violation of anti-corruption and anti-bribery laws x x 204 ESRS G1-4 24 (b) Standards of anti-corruption and anti-bribery x 204 List of datapoints that derive from other EU legislation, continued. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 212 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 213 ===== Statement on due diligence Our due diligence process in described on page 143. In line with ESRS 2 GOV-4, the table below provides a mapping of how and where the main aspects and steps of the due diligence process are reflected within the Sustainability Statement for each relevant standard. Core elements of due diligence Section in the Sustainability Statement Page reference a) Embedding due diligence in governance, strategy and business model Information on how we integrate due diligence into our govern - ance model and strategic framework as well as as how our due diligence processes inform the materiality assessment is pre - sented in the Strategy, business model and value chain, Sustain - ability governance and Materiality assessment section 133, 143–144, 145–147 b) engaging with affected stakeholders Details on our engagement with affected stakeholders, and how these interactions inform our materiality assessment, are pre - sented in the Stakeholder engagement and Materiality assess - ment section 138, 145–147 c) identifying and assessing negative impacts on people and the environment Our methodology to identify and assess negative impacts is described in the Materiality assessment section. The material impacts are summarised in the Environmental, Social and Governance section. 145–147, 153, 164, 167, 170, 173, 180, 189, 195, 200 d) taking action to address negative impacts on people and the environment The negative impacts on people and the environment are addressed with actions. These are disclosed in the Environmen - tal, Social and Governance section 156, 165, 168, 171, 175, 183, 191, 197, 204 e) tracking effectiveness of these efforts The effectiveness of actions is tracked using key sustainability metrics. These are included in the Environmental, Social and Governance section. 160, 165, 168, 171, 176, 184–186, 193, 198, 204 OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 213 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 214 ===== Auditor’s limited assurance report of Volvo Cars’ statutory sustainability statement This auditor’s report is a translation of the Swedish language original. In the events of any differences between this translation and the Swedish original the latter shall prevail. To the general meeting of the shareholders of Volvo Car AB (publ), corporate identity number 556810-8988 Conclusion We have conducted a limited assurance engagement of the sustain - ability statement for Volvo Car AB (publ) (“Volvo Cars”) for the financial year 2025. The sustainability statement is included on pages 130–213 in this document. Based on our limited assurance engagement as described in the section Auditor’s responsibility, nothing has come to our attention that causes us to believe that the sustainability statement does not, in all material respects, meet the requirements of the Swedish Annual Accounts Act which includes, • whether the sustainability statement meets the requirements of the European Sustainability Reporting Standards (ESRS), • whether the process the company has carried out to identify reported sustainability information has been conducted as described in the sustainability statement, • compliance with the reporting requirements of the EU’s Green Taxonomy Regulation Article 8 (EU Taxonomy) Basis for conclusion We have conducted the limited assurance engagement in accord - ance with FAR’s recommendation RevR 19 Revisorns översiktliga granskning av den lagstadgade hållbarhetsrapporten . Our responsi- bility according to this recommendation is further described in the section Auditor’s responsibility. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Other information than the sustainability statement This document also contains other information than the sustainabil - ity statement and is found on pages 1–126, 216–218 and 220–227. The Board of Directors and the Chief Executive Officer are responsi - ble for this other information. Our conclusion on the sustainability statement does not cover this other information and we do not express any form of assurance conclusion regarding this other information. In connection with our limited assurance engagement on the sustainability statement, our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the sustainability statement. In this procedure we also take into account our knowledge otherwise obtained in the limited assurance engagement and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other infor - mation, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Chief Executive Officer The Board of Directors and the Chief Executive Officer are responsi - ble for the preparation of sustainability statement in accordance with Chapter 6, paragraphs 12–12f of the Swedish Annual Accounts Act, and for such internal control as they determines is necessary to enable the preparation of the sustainability statement that is free from material misstatements, whether due to fraud or error. Other matters Prior year’s sustainability statement has not been subject to limited assurance procedures in accordance with FAR’s recommendation RevR 19 and consequently prior year’s information in the sustaina - bility statement for 2025 has not been subject to limited assurance procedures in accordance with that recommendation. Auditor’s responsibility Our responsibility is to express a conclusion on whether the sustain - ability statement has been prepared in accordance with Chapter 6, Sections 12–12f of the Swedish Annual Accounts Act based on our review. The limited assurance engagement has been conducted in accordance with FAR’s recommendation RevR 19 Revisorns över siktliga granskning av den lagstadgade hållbarhetsrapporten . This recommendation requires that we plan and perform our procedures to obtain limited assurance that the sustainability statement is prepared in accordance with these requirements. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assur - ance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assur - ance engagement been performed. This means that it is not possible for us to obtain such assurance that we become aware of all signifi - cant matters that could have been identified if a reasonable assur - ance engagement had been performed. Our firm applies ISQM 1 (International Standard on Quality Man - agement), which requires the firm to design, implement and operate a system of quality management, including policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 214 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 215 ===== We are independent of Volvo Car AB (publ) in accordance with professional ethics for auditors in Sweden and have otherwise ful - filled our ethical responsibilities in accordance with these require - ments. A limited assurance engagement involves performing procedures to obtain evidence to support the sustainability statement. The auditor selects the procedures to be performed, including assessing the risks of material misstatements in the sustainability statement, whether due to fraud or error. In this risk assessment, the auditor considers the parts of the internal control that are relevant to how the Board of Directors and the Chief Executive Officer prepare the sustainability statement, in order to design procedures that are appropriate under the circumstances, but not for the purpose of providing a conclusion on the effectiveness of the entity’s internal control. The review consists of making inquiries, primarily of persons responsible for the preparation of the sustainability statement, performing analytical review, and conducting other limited review procedures. Our review procedures concerning the entity’s process for identi - fying sustainability information to be reported included, but were not limited to: • Obtain an understanding of the process by: • Perform inquiries to understand the sources of the information used by entity, and • Review the entity’s internal documentation of the process • Evaluate whether the evidence obtained from our procedures about the process implemented by the entity is consistent with the description of the process set out on page 145–147 in the sustainability statement. The review procedures with respect to the sustainability statement included but were not limited to the following: • By inquiries obtain an understanding of the entity’s control envi - ronment, reporting processes, and information systems relevant to the preparation of its sustainability statement • Evaluate whether information identified to be material by the entity’s the process for identifying sustainability information to be reported, is included in the sustainability statement • Evaluate whether the structure and the presentation of the sustainability statement is in accordance with the requirements in ESRS • Perform inquiries of relevant personnel and analytical procedures on selected disclosures in the sustainability statement • Perform substantive assurance procedures on a sample basis on selected disclosures in the sustainability statement • Perform inquiries and analytical procedures to evaluate the meth - ods, data and significant assumptions that have been used to make estimates in the sustainability statement are appropriate and applied consistently The review procedures with respect to the EU Taxonomy included but were not limited to the following: • Obtain an understanding of the process to identify taxonomy- eligible and taxonomy-aligned economic activities and the corresponding disclosures in the sustainability statement • Evaluate whether the activities within the EU Taxonomy are consistent to the financial statements and related notes • Evaluate processes, documentation and assessment of eligibility and alignment with the economic activities and technical screen - ing criteria within the EU Taxonomy • Evaluate whether the reporting is in accordance with the require - ments in EU Taxonomy Inherent limitations In reporting forward-looking information in accordance with ESRS, the Board of Directors and the Chief Executive Officer for Volvo Car AB (publ) are required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the entity. The actual outcome is likely to be different since anticipated events frequently do not occur as expected. Gothenburg March 4, 2026 Deloitte AB Signature on Swedish original Fredrik Jonsson Authorized public accountant OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 215 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 216 ===== In 2015, the United Nations established its 17 Sustaina - ble Development Goals (SDGs) as a blueprint for achieving a better and more sustainable future for all. We are committed to these goals and use them to guide UN Sustainable Development Goals our sustainability work. We recognise that we have both a positive and negative effect on the Goals and aim to improve our net positive impact overall. All SDGs we contribute to, and how, are listed below. UN SDG Target reference Examples of Volvo Cars impact and/or contribution 1.2, 1.3 • We aim to ensure a living wage for our employees, as well as for the workers throughout our value chain. Volvo Cars supports the requirements of the International Labour Organization (ILO) and expects its business partners to adhere to and respect the ILO standards. • We help protect our employees and provide all our employees with social protection and insurance. 3.6, 3.9 • We have established a zero collision vision strategy to prevent injuries and fatalities in our vehicles by focusing on prevention and protection. • We aim to eliminate pollution in our value chain and substances of concern in our products. 4.4, 4a • In collaboration with academic institutions and by providing job training, we aim to strengthen competence development. • Volvo Cars partners with the nonprofit Girls Who Code to promote STEM education for girls and nonbinary students inspiring them to pursue careers in the tech and automotive industries. 5.1, 5.2, 5.4, 5.5 • We exercise zero tolerance towards discrimination and all work in the company shall be character - ised by respect for the individual. • Volvo Cars Family Bond offers an all-gender inclusive paid parental leave to help closing gender gap and balancing the demands of work and family. • We run graduate, mentorship, and leadership programs to help women advance their careers and increase female representation in senior roles. We aim to have 34% women in senior leadership by 2030. 6.4 • By 2030, we aim to reduce water withdrawal in our own operations by 50 per cent per manufac - tured car (from a 2018 baseline). 7.2, 7.3 • By 2030, we aim to reduce energy consumption in own operations by 40 per cent per manufac - tured car (2018 baseline). 8.2, 8.4, 8.5, 8.7, 8.8 • Our transformation journey to become a fully electric car company, involves significant invest - ments in electric powertrains, battery technology and the Superset tech leading to increased scalability and efficiency. • We aim towards becoming a circular business by 2040. • To promote equal pay for work of equal value, we perform and analyse gender pay gaps to create equal opportunity workplace. • Volvo Cars prohibits child and forced labour and conducts supply chain due diligence to identify and address risks of human rights violations. • We prioritise a safe working environment by focusing on and reducing our injury rate to 0.02 by 2030, reflecting the ongoing commitment to employee safety and well-being through systematic improvements. UN SDG Target reference Examples of Volvo Cars impact and/or contribution 9.4, 9.5 • In collaboration with other investors and partners, we are establishing Mobility Innovation Desti - nation Torslanda, a mobility innovation centre for emerging technologies, with the aim of connect - ing with other businesses to accelerate innovation. • We have strategic programmes to merge sustainability and electrification into our products and operations, with ambitions for these. 11.2, 11.3 • We are active participants in the Gothenburg Green City Zone initiative, where industry, academia and public actors collaborate to develop and implement a climate neutral transport system by 2030. • We initiated a multi-stakeholder collaboration “BeeGo” within Gothenburg Region to promote bio - diversity and ecosystem services locally and globally in collaboration. 12.2, 12.4, 12.5, 12.6 • By contributing to the circular economy, we aim to significantly reduce waste and consumption of primary raw materials. We seek to optimise the life cycles of our products and components. • We publish our Sustainability Statement in accordance with international standards and guide - lines. 13.1, 13.2, 13.3 • We aim to reach net zero greenhouse gas emissions by 2040. 14.8 • We partner with the Ocean Race to raise the awareness on ocean issues. 15.5 • We have a long-term ambition on nature and biodiversity, aiming to achieve net positive across our value chain and contribute to nature positive. 16.4, 16.5, 16.10 • By encouraging reporting of suspected corruption and bribery through our grievance channel Tell Us, we seek to create transparency, enhancing accountability and deterring corrupt behaviour. • To prevent legal risks in the fields of corruption, trade sanctions and money laundering suppliers are screened in an anti-corruption and trade sanction processes. • We respect the right to privacy and take all appropriate precautions to protect personal data. 17.14, 17.16 • To drive our own sustainability performance and change within our industry, we have a strong stakeholder engagement and are active in several partnerships, commitments and forums. • Volvo Cars supports and advocates for policy development on a wide range of topics for sustaina - ble development. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 216 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 217 ===== The Green Financing Framework We launched our Green Financing Framework in 2020. In 2023, the framework was updated to more accurately reflect our strategy, market practices and standards. It is aligned with the 2021 ICMA Green Bond Principles (including the Appendix I update from June 2022) and the 2023 LMA, LSTA, APLMA Green Loan Principles. Our ambition is for all of our outstanding debt to be within the Green Financing Framework or other sustainability-linked formats. Within the framework, we issue bonds and enter bilateral and multilateral credit facilities. Although not all this financing is defined as green by our lenders, it is solely used for projects that conform with the Green Financing Framework. Our framework has been reviewed by CICERO Shades of Green, now part of S&P Global, an independent research and assessment company. Both the initial version and its update received the highest possible CICERO rating with a “Dark Green” shading, which included an excellent grading for governance structure and processes. More information can be found on our website. Financing in 2025 In March, a drawdown of USD 438 m was made under an existing bilateral loan facility with the purpose to finance investments that meet the eligibility criteria set out in our Green Financing Frame - work. The facility was originally signed in 2023/2024 and will mature in 2035. In June, we issued our fifth green bond of EUR 500 m, with a four-year tenor. The proceeds will support our ambition to be a leading player in the premium electric car segment and achieve net zero greenhouse gas emissions by 2040. This includes funding research and development of upcoming electric cars and platforms, and related manufacturing processes. This bond, along with all our previously issued green bonds, is listed on the Luxembourg Stock Exchange. Green Financing Report In September, a new bilateral eight-year loan agreement of EUR 150 m was signed with the purpose to finance investments that meet the eligibility criteria outlined in the Green Financing Frame - work. The loan facility remains undrawn as per the end of 2025. In October, an existing eight-year credit facility of CNY 3,090 m was terminated, and the drawn amount of CNY 259 m was repaid. Allocation report and use of proceeds The net proceeds from loans under our Green Financing Framework and our green bonds are used to finance and/or refinance, in whole or in part, new or existing projects, assets and activities according to our eligibility criteria. The table on the following page describes all outstanding debt, the share of financing and refinancing and the allocation of proceeds, as per 31 December 2025. Any unallocated net proceeds are held in cash or cash equivalents and/or invested in other liquid marketable instruments. As of 31 December 2025, all funds and proceeds from green bonds and loans that meet the eligi - bility criteria in the Green Financing Framework have been allocated. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 217 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 218 ===== Impact Report 2025 2024 Fully electric cars (BEVs) retail sales, k units 152 175 Fully electric cars (BEVs) retail sales, % 21 23 Total CO2 tailpipe emissions avoided, k tonnes 1) 3,923 4,340 Reduction of CO 2 tailpipe emissions per car (compared to 2018 baseline), % 42 46 1) Calculated by multiplying number of retail sold BEVs with the global average CO 2 emissions (WLTP) for all manufactured Volvo-branded cars per year, respectively, excluding BEVs. For calculation purposes, an assumed average milage of 200,000 km per car has been applied. Impact Report Environmental impact and benefits in the Clean Transportation category are estimated and evaluated with impact indicators listed in the Impact Report table. As the estimated impact of allocated proceeds will be realised over several years and be dependent on manufacturing and sales of fully electric cars, it is not possible to precisely attribute the share of allocated proceeds to the specific indicators. Therefore, annual corporate performance is used to represent the environmental impact of allocated proceeds. We assume these indicators will assess the effect of clean transporta - tion as a means of climate change mitigation. All new projects are assessed in terms of economic, social and governance risks, as well as the EU Taxonomy alignment. For definitions and calculation methodology of the indicators, see page 162. Use of proceeds and allocation as per 31 December 2025 Green Bonds Loan Facilities 1) Issuance/Date of signing Oct 2020 May 2022 Feb 2023 Apr 2024 Jun 2025 May 2022 Dec 2022 Dec 2023 / Jan 2024 Sep 2025 Maturity Oct 2027 May 2028 Mar 2026 May 2030 Jun 2029 May 2030 Dec 2030 Mar 2035 Sep 2033 ISIN XS2240978085 XS2486825669 XS2593141604 XS2593137917 XS2811097075 XS3088627982 N/A N/A N/A N/A Currency EUR EUR SEK EUR EUR SEK EUR USD EUR Amount issued (million) 500 500 1,500 500 500 1,000 200 438 150 Amount drawn (million) — — — — — 1,000 200 438 — Unallocated 2) (%) — — — — — — — — — Allocated 3) (%) 100 100 100 100 100 100 100 100 — Finance (%) 4 70 70 55 45 65 63 87 — R&D 3 46 70 5 — 65 63 75 — Manufacturing 4) 2 25 — 50 45 — — 12 — Other — — — — — — — — — Refinance (%) 96 30 30 45 55 35 38 13 — R&D 31 30 30 45 25 — 38 13 — Manufacturing 4) 33 — — — 30 35 — — — Other5) 31 — — — — — — — — 1) Refers to facilities with the purpose of financing projects meeting the eligibility criteria under the Green Financing Framework. 2) Refers to the share of unallocated proceeds invested in cash and/or cash equivalent and/or other liquid marketable instruments earmarked for Eligible Green Projects. 3) Refers to the share of allocated proceeds in Eligible Green Projects. 4) Including tooling and facilities. 5) Equity injection in Polestar. 2025 2024 The share of green debt, in accordance with our Green Financing Framework, or sustainability-linked format as percentage of outstanding debt 1) (%) 98 76 1) See Note 19 – Financial Instruments and Financial Risks for definition of outstand - ing debt. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 218 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 219 ===== Auditor’s limited assurance report on Volvo Cars’ Green Financing Report This auditor’s report is a translation of the Swedish language original. In the events of any differences between this translation and the Swedish original the latter shall prevail. To Volvo Car AB (publ), corporate identity number 556810–8988 Conclusion We have been engaged by Volvo Car AB (publ) (”Volvo Cars”) to undertake a limited assurance engagement of the Green Financing Report (“Reporting”) for the year 2025 set out on pages 217 and 218 in this document. Based on our limited assurance engagement as described in the section Auditor’s responsibility, nothing has come to our attention that causes us to believe that the Reporting for the year 2025, is not prepared, in all material respects, in accordance with the applicable criteria, as explained in the Volvo Cars Green Financing Framework. Basis for conclusion We have conducted the limited assurance engagement in accord - ance with ISAE 3000 (revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information. Our responsi - bility according to this recommendation is further described in the section Auditor’s responsibility. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Responsibilities of Management Volvo Cars Management is responsible for the preparation of the Reporting in accordance with the applicable criteria, as explained in the Volvo Cars Green Financing Framework dated May 2023 (availa - ble at https://investors.volvocars.com/en/debt-information/ green-financing) as well as the accounting and calculation principles that the Company has developed. This responsibility also includes the internal control relevant to the preparation of the Reporting that is free from material misstatements, whether due to fraud or error. Responsibilities of the auditor Our responsibility is to express a conclusion on the Reporting based on the limited assurance procedures we have performed. We con - ducted our limited assurance engagement in accordance with ISAE 3000 (revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information. This recommendation requires that we plan and perform our procedures to obtain limited assurance that the sustainability statement is prepared in accord - ance with the criteria described in the section Responsibilities of Management. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assur - ance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assur - ance engagement been performed. This means that it is not possible for us to obtain such assurance that we become aware of all signifi - cant matters that could have been identified if a reasonable assur - ance engagement had been performed. Our firm applies ISQM 1 (International Standard on Quality Man - agement), which requires the firm to design, implement and operate a system of quality management, including policies and procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements. We are independent of Volvo Car AB (publ) in accordance with pro- fessional ethics for auditors in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. A limited assurance engagement involves performing procedures to obtain evidence to support the reporting. The auditor selects the procedures to be performed, including assessing the risks of mate - rial misstatements in the reporting, whether due to fraud or error. In this risk assessment, the auditor considers the parts of the internal control that are relevant to how Management prepares the report - ing, in order to design procedures that are appropriate under the circumstances, but not for the purpose of providing a conclusion on the effectiveness of the entity’s internal control. The review consists of making inquiries, primarily of persons responsible for the prepa - ration of the sustainability statement, performing analytical review, and conducting other limited review procedures. The review procedures with included but were not limited to the following: • Obtain an understanding of the entity’s control environment, reporting processes, and information systems relevant to the preparation of the reporting • Perform inquiries of relevant personnel and analytical procedures on the reporting • Perform substantive assurance procedures on a sample basis on the reporting • Evaluate processes, documentation and assessment of project evaluation and selection, management of proceeds and reporting, based on the criteria outlined in the Volvo Cars Green Financing Framework Gothenburg March 4, 2026 Deloitte AB Signature on Swedish original Fredrik Jonsson Authorized public accountant OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY GENERAL INFORMATION ENVIRONMENTAL INFORMATION EU Taxonomy Report Climate change Pollution Water Biodiversity and ecosystems Resource use and circular economy SOCIAL INFORMATION Own workforce Workers in the value chain Consumers and end-users GOVERNANCE INFORMATION Business conduct OTHER INFORMATION THE SHARE 220 OUR HERITAGE 222 219 VOLVO CAR GROUP / SUSTAINABILITY / OTHER INFORMATION ===== SIDA 220 ===== Share performance and trading volume Based on the closing share price on 31 December 2025, SEK 30.70, the Group’s market capitalisation was SEK 91,471 million. The share price increased by 28 per cent during 2025, while the broad index (OMXSPI) increased 9.54 per cent. The highest closing price quoted was SEK 35.75 on 11 November and the lowest closing price quoted was SEK 16.17 on 23 June. A total of approximately 1,540 million Volvo Car AB’s (publ.) shares were traded on all marketplaces with average daily trading volume of 6.2 million shares. Dividend Dividend pay-out will be assessed from year to year based on Volvo Car Group’s net income, financial position and investments needs. Volvo Cars continues to focus on delivering its ambitions and growth strategy. As visibility on the transformation increases in the medi - um-term, the ambition is to increase dividend pay-outs towards industry averages. The Board of Directors proposes that no ordinary dividend is distributed and that the retained earnings shall be carried forward. The share The number of Volvo Cars shares amounts to 2,979,524,179. Each share has a quota value of 0.02 SEK and the share capital amounts to SEK 60,947,709. Volvo Car AB’s (publ.) share capital comprises one series of B-shares, with each share carrying equal voting rights and equal rights to dividends. The most recent occasion when new shares were issued was in conjunction with the IPO in October 2021. Ownership structure As of 31 December 2025, 78.7 per cent of the shares is owned by principal owner Geely Sweden Holdings AB. No other shareholder owns – directly or indirectly – more than 10 per cent of the shares in Volvo Cars. Foreign ownership excluding Geely Holding at year-end corresponded to 6.1 per cent of the share capital. The largest foreign ownership excluding Geely Holding is in the United States, United Kingdom and Belgium. Shareholder communication and financial calendar Information for the capital market and other interested parties is provided on investors.volvocars.com. On the website, it is possible to access financial reports, Annual and Sustainability reports, past events recordings and sales and regulatory press releases. Printed copies of Annual and Sustainability reports are only distributed to shareholders upon request. Dialogue with the shareholders and the market is important for Volvo Cars. Apart from the Annual General Meeting, Volvo Cars maintained active discussions through events, livestream with Q&A in conjunction with the publication of interim reports, investor meetings and visits, meetings with retail shareholders’ associations, as well as roadshows. Volvo Cars also hosted a Strategy Update in November 2025, where the company outlined the long-term strategic direction towards profitable growth. The share The Volvo Cars’ share is listed on Nasdaq Stockholm, where it trades with the ticker VOLCAR B. Basic earnings per share in 2025 was SEK 0.06. Financial Calendar 31 March 2026: Annual General Meeting, Gothenburg, Sweden 29 April 2026: Q1 2026 report 17 July 2026: Q2 2026 report 23 October 2026: Q3 2026 report Annual General Meeting 31 March 2026 The shareholders of Volvo Car AB (publ.), Reg. No. 556810-8988, (“Volvo Cars”) are invited to participate in the Annual General Meeting (the “AGM”) to be held on 31 March 2026, at 13.00 CEST at World of Volvo at Lyckholms Torg 1, SE-412 63 Gothenburg, Sweden. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY 130 THE SHARE OUR HERITAGE 222 ===== SIDA 221 ===== Size class Number of known shareholders Number of B-shares Capital Votes 1–500 125,364 15,920,258 0.5% 0.5% 501–1,000 12,884 9,900,004 0.3% 0.3% 1,001–5,000 12,372 25,700,646 0.9% 0.9% 5,001–10,000 1,536 11,464,424 0.4% 0.4% 10,001–20,000 670 9,746,609 0.3% 0.3% 20,001– 682 2,906,792,238 97.6% 97.6% Total 153,508 2,979,524,179 BREAKDOWN BY SIZE 31 DECEMBER 2025 Owners Number of B-shares Capital Votes Geely Sweden Holdings1) 2,343,396,227 78.7% 78.7% AMF Pension & Funds 103,351,869 3.5% 3.5% Folksam Group 60,644,305 2.0% 2.0% Alecta Pension Insurance 29,650,000 1.0% 1.0% Handelsbanken Funds 25,921,166 0.9% 0.9% SEB Investment Management AB 23,112,523 0.8% 0.8% Ithaki Limited 21,455,443 0.7% 0.7% Nordea Funds Oy 20,678,022 0.7% 0.7% The Vanguard Group, Inc. 20,531,859 0.6% 0.6% Tredje AP Fonden 18,839,000 0.6% 0.6% Ten largest owners, total 2,666,758,414 89.5% 89.5% Others 311,943,765 10.5% 10.5% Total 2,979,524,179 100% 100% 1) Geely Sweden Holdings AB is owned by Shanghai Geely Zhaoyuan International Investment Co., Ltd., registered in Shanghai, China, and ultimately owned by Zhejiang Geely Holding Group Ltd., regis - tered in Hangzhou, China. TEN LARGEST SHAREHOLDERS 31 DECEMBER 2025 VOLCAR B – SHARE PRICE DEVELOPMENT OWNERSHIP BY COUNTRY Volvo Cars share as of year-end 2025 Sweden 15.28% United States 1.80% United Kingdom 1.26% Belgium 1.09% Luxembourg 0.71% China 78.65% Other 1.20% OWNERSHIP BY CATEGORY Swedish institutional owners 11.84% Swedish private individuals 3.02% Foreign institutional owners 6.49% Geely Sweden Holdings AB 78.65% Symbol: VOLCAR Market cap: SEK 91.47 billion Number of known shareholders: 153,508 Basic earnings per share: SEK 0.06 January 2025 December 2025 VolumeSEK Volvo Cars OMXS PI (Rebased) Volume 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 00 20 10 30 40 50 OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY 130 THE SHARE OUR HERITAGE 222 VOLVO CAR GROUP / THE SHARE 221 ===== SIDA 222 ===== 1927 – Assar Gabrielsson and Gustaf Larson launch the first Volvo car in Gothenburg, Sweden. The car was an open tourer with a four-cylinder engine. 1972 – Environment was added to our core values, Safety and Quality. Volvo invented the rearward-facing child safety seat. 1976 – Volvo released the Lambda Sond, the world’s-first catalytic exhaust control system that reduces harmful emissions. Volvo was officially chosen as the safety standard benchmark for all new cars in the USA. 1977–1978 – Volvo 240, was awarded the American National Environmental Industry Award and named the cleanest car by the California Air Resources Board. 1978 – Volvo Cars was spun out as a separate entity from AB Volvo. 1944 – “The little Volvo” (PV444), was a car that turned Volvo into an international car company was unveiled in Stockholm. 1953 – The Volvo Duett was launched as “two cars in one” – for both work and leisure. 1955 – The first PV 444 was unloaded at a port in Long Beach, California. Two years later Volvo Car had become the second-biggest import brand in California. 1959 – Volvo engineer Nils Bohlin invents the three-point safety belt. 1964 – Our plant in Gothenburg was inaugurated and is still our largest production facility. ’70 s ’ 40s–’60s Volvo Cars was founded upon the concepts of quality and safety by Assar Gabrielsson and Gustaf Larson in Gothenburg, Sweden, and in 1927 the first Volvo car, was released. Ever since our founding in 1927, we’ve been designing cars that put people first and we have become a truly global company renown for safety selling approximately 710,000 cars all over the world. Our heritage – An exciting journey and decades of innovations 1984 – The sales of Volvo 740 and 760 were a great success. ’80s OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY 130 THE SHARE 220 OUR HERITAGE 222 VOLVO CAR GROUP ===== SIDA 223 ===== 2001 – A new generation of environmentally adapted diesel engines was launched. 2002 – Volvo XC90 was launched and became an instant success all over the world. 2007 – Volvo ReCharge Concept Car, a plug-in hybrid was first displayed. 2008 – The City Safety, a low-speed auto brake solution that automatically is braking the car in the event of imminent risk of collision was introduced. The popular DRIVe series encompassed seven models classed as green cars. 1991 – Volvo presented Volvo 850 – the largest product investment since Volvo introduced the Side Impact Protection System. 1998 – Volvo developed the Inflatable Curtain. 1999 – Volvo Cars was acquired by Ford Motor Company. ’00s ’90s 2010 – Geely Holding acquired Volvo Car from Ford. 2011 – Volvo Cars appointed top car maker in Sustainable Brands. 2013 – The four-cylinder powertrains featuring a lightweight base powertrain replaced its fourteen- engine powertrain family predecessor. We established a manufacturing joint venture with Geely Holding and built two manufacturing plants in Chengdu and Daqing, China. Volvo C30 awarded “Green Car of the Year” in China. 2014–2015 – The in-house development of the Scalable Product Architecture (SPA) was completed and the new generation XC90, the first car model built on the SPA, started a new chapter in our history. 2017 – We announced our electrification strategy. ’10s The Volvo XC40, the first model based on our compact modular vehicle architecture (CMA) was introduced. It set our new standard in design, connectivity and safety. 2017 OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY 130 THE SHARE 220 OUR HERITAGE VOLVO CAR GROUP / OUR HERITAGE 223 ===== SIDA 224 ===== Our long-term sustainability ambitions to become a climate neutral company and circular business by 2040 was announced. We launched XC40 Recharge P8, our first fully electric SUV. Our first model equipped with an infotainment system powered by Android. 2019 2018 2020 Engine production facility in Skövde, Sweden becomes a climate neutral (in terms of CO2 emissions) production facility. A solar energy installation was unveiled at the Ghent factory. The production facility in Charleston, South Carolina, was opened establishing a global manufacturing footprint. Subscription based Care by Volvo and Volvo Car Mobility was announced. We partnered with NVIDIA for the development of a highly capable, AI-based, central computer for the next generation of Volvo cars. Production of XC40 Recharge starts in Ghent. The climate plan, under which Volvo Cars strives to become a climate neutral company by 2040, was scientifically verified by the Science Based Targets initiative (SBTi), a collaboration that provides companies with a clear pathway to support the Paris Agreement. Started production of second fully electric model C40 recharge. On 29 October Volvo Cars became a listed company on the Nasdaq Stockholm stock exchange. 2021 OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY 130 THE SHARE 220 OUR HERITAGE VOLVO CAR GROUP / OUR HERITAGE 224 ===== SIDA 225 ===== Launched the new Volvo EX30. Revealed the Volvo EM90, our first MPV. Opened new Tech Hubs in Krakow, Poland and Singapore. Volvo Cars continued the commercial transformation as shown by the transition of the UK market to a direct model. Volvo Cars declared the end of diesel at Climate Week NYC – our last diesel car will be produced in early 2024. Unveiled the new Volvo EX30 Cross Country. Completed the divestment of its 30 per cent stake in Lynk & Co. Launched the all-new, fully electric Volvo ES90. Introduced world first multi-adaptive safety belt. Launched the first long-range plug-in hybrid, the Volvo XC70 SUV. 2023 2025 2022 2024 We in collaboration with Northvolt announced the establishment of a new battery plant in Gothenburg. Announced that we will establish an electric car manufacturing plant in Slovakia. We become a founding member of Accelerating to Zero Coalition, calls for more climate action from governments. Launched the new Volvo EX90. Divested its 33 percent holding in Aurobay to Geely Holding, aligned with the electrification ambitions. Start of production for the flagship SUV EX90. Announced a new approach on technology: The Volvo Cars Superset tech stack. Launched an updated version of the XC90 hybrid SUV. Distributed 62.7 per cent of it shareholding in Polestar Automotive Holding UK PLC to shareholders. Took full ownership of HaleyTek. OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY 130 THE SHARE 220 OUR HERITAGE VOLVO CAR GROUP / OUR HERITAGE 225 ===== SIDA 226 ===== Forward looking statements This report contains statements concerning, among other things, Volvo Car Group’s financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent Volvo Car Group’s future expectations. Volvo Car Group believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions. However, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or out - comes to differ materially from those expressed in any forward-looking statement. Such important factors include but may not be limited to: Volvo Car Group’s market position, growth in the automotive industry, and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of Volvo Car Group, its associated companies and joint ventures, and the automotive industry in general. Forward-looking statements speak only as of the date they were made and, other than as required by applicable law, Volvo Car Group undertakes no obligation to update any of them in light of new information or future events. Language In the event of inconsistency or discrepancy between the English and the Swedish version of this publication, the Swedish version shall prevail. Totals and roundings Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source, and rounding differences may therefore arise. This includes comparative calculations including Year-over-Year change percentages. DEFINITIONS Volvo Cars and Volvo Car Group Volvo Car AB (publ.) together with its wholly-owned subsidiary Volvo Car Corporation and its subsidiaries are jointly referred to as “Volvo Car Group” or “Volvo Cars”. Volvo Car AB (publ.), with its regis- tered office in Gothenburg, Sweden, is a publicly listed company on the Nasdaq Stockholm Stock Exchange (traded under the ticker VOLCAR B). The largest owner, holding 78.65% of shares and capital, is Geely Sweden Holdings AB, owned by Shanghai Geely Zhaoyuan International Invest- ment Co., Ltd., registered in Shang- hai, China, and ultimately owned by Zhejiang Geely Holding Group Ltd., registered in Hangzhou, China. Volvo Car AB (publ.) holds shares in its subsidiary Volvo Car Corpora- tion and provides the Group with certain financing solutions. Volvo Car AB (publ.), indirectly through Volvo Car Corporation and its sub- sidiaries, operates in the auto motive industry with business relating to design, development, manufactur- ing, marketing and sale of cars and thereto related services. Associated companies Associated companies are compa - nies in which Volvo Car Group has a significant but not controlling influence, which generally is when Volvo Car Group holds between 20% and 50% of the shares. Joint venture companies (JVs) Joint ventures refer to companies in which Volvo Car Group, through contractual cooperation together with one or more parties, has joint control over the operational and financial management and has rights to the net assets of the arrangement. Retail sales Retail sales refer to sales to end customers (including a portion of cars used as customer loaner and demo cars) and is a relevant measure of the demand for Volvo Cars from an end customer point of view. Wholesales Wholesales refer to new car sales to dealers and other customers including rentals. Europe Europe is defined as EU+EFTA+UK. Passenger cars Passenger cars are vehicles with at least four wheels, used for the trans - port of passengers, and comprising no more than eight seats in addition to the driver’s seat. Traditional premium segment Traditional premium segment is the premium market brands such as Volvo Cars, Audi, BMW, Lexus, Mercedes and so on. Battery Electric Vehicles (BEV) BEV cars include all vehicles which are 100% fully electrified cars. Non Battery Electric Vehicles (Non-BEV) Non-BEV cars include all vehicles which are not 100% fully electrified cars (BEV). For Volvo Cars, it includes plug-in hybrid (PHEV), mild hybrid (MHEV) and internal combustion engine cars (ICE). Extended Range Electric Vehicle (EREV) EREV cars are cars charged by plug-in but also have a small gasoline engine that charges the battery while driving, which increases driving range. Electrified cars Electrified cars include 100% fully electric cars, the same as the Battery Electric Vehicles (BEV), and Plug-in hybrids (PHEV), in both petrol and diesel with cord for charging. ICE Internal combustion engine, including all powertrain types except plug-in hybrids (PHEV) and fully electric vehicles (BEV). Agency personnel / Consultant Agency personnel/consultant is referred to as specific competence that is sourced externally and assigned to meet fluctuating business resource needs. Contract manufacturing A business model in which a third- party company is contracted for the production of goods or components over a specified contract period. Repurchase cars Cars under repurchase agreement are cars such as company cars and cars sold to rental companies. These cars are sold under a contract with a commitment (the right or obligation to buy back the car). Investor Relations investors@volvocars.com Media Relations media@volvocars.com INFORMATION AND CONTACTS Volvo Car Group Headquarters Gunnar Engellaus väg 8 SE-418 78 Gothenburg, Sweden www.volvocars.com OVERVIEW 3 MARKET 15 OUR STRATEGIC FRAMEWORK 18 DIRECTORS’ REPORT 29 RISK 36 CORPORATE GOVERNANCE 42 FINANCIALS 61 SUSTAINABILITY 130 THE SHARE 220 OUR HERITAGE 226 VOLVO CAR GROUP ===== SIDA 227 =====