Volvo Car AB (publ.) ($VOLCARB)

Good morning, everybody, and welcome to Volvo Cars 2026 Sustainability Update. My name is Vanessa Butani. I'm Global Head of Sustainability here at Volvo Cars. And I'm going to hand over to Michael Fleiss, our Chief Strategy and Product Officer, who is going to start us off today. Thank you, Michael.

Thank you. Also, good morning from my side here. Very happy to speak to you about the sustainability. So starting with our framework, our strategic framework to provide freedom to move in a personal, sustainable and safe way. This strategy is with us for quite some time. And we break it down to personal, we understand our customers and we develop our products for our customers. Sustainability, we talk a lot about today, very important to us and very close to our heart. This feature actually was introduced in 1972, 1972 where we talked first time about environmentally friendliness. So really important to us. And then Safe. Safe is with us since we started the company was started in 1927. So 3 strong pillars for our strategy and they are constant for quite some time. In this globalized world, we need to build resilience. And that's mainly for us, but even more important for our customer base. So we need to have sustainability across the operations. We need to decrease pollutions. We need to reduce waste. We need to reduce water consumption. We need to create a safe environment for our workers, and we need to be sure that human rights are followed. That's really important to us. And we will talk more about that later on, and the team will present that. But for us, as a car company, the biggest influence is obviously CO2. So I will focus more on the CO2 part. But resilience means also in these times reducing our investments. And we are really happy that our big investments we have done are over now and we can harvest on these investments, which are the development of this [indiscernible] architecture and the [indiscernible] manufacturing site. So for us, it doesn't change. Electrification is our future because they are just better cars, that's a fact. If you drive one, you will find it out. It's just a better car. And we are happy to see that our competition is slowing down. That means we can create more opportunities to move into that market space and create -- increase our share. And the EVs are not good because they are supported by the government. Again, it's a black car. And we need to make sure that range, charging time and price are becoming similar to the combustion cars. We see in the world reduced speed of going for electrification, but still the electrification is the biggest growing segment in the automotive industry. And for us, it's really important to have our software-based system for all cars with our new gen core system, which we have introduced in SPA3. It is lower cost for us, and it's a better experience for our customers. We have just recently updated millions of cars in 1 day, and that is the power of this technology. Also perhaps good for you to know. Recently, Standard & Poor's created a ranking system for software-defined vehicles. Guess what? Volvo has the best system sharing that plays #1 with only NIO. So NIO and Volvo have currently the best software-defined vehicles out in the market. Also part of our strategy is that we even more make sure that we have common architectures plus explained by the software, but also synergies with our colleagues from China, where we can have synergies based on the legal requirements. And this will enable us to create better products, but also more cost-efficient products. Yes. As I said, the transition is slowing down a little bit. You can see here our 3 biggest markets: Europe, North America and Greater China. On the left axis, you see the millions of cars sold. And on the bottom axis, the years. And here you see when you see the dotted lines, that was a forecast from 2 years ago. And the solid lines are -- is the latest forecast. And you can see it's marked with a gray and green arrow, the difference. So there's 2 to 3 years difference in the tipping point, and the tipping point means when do we sell as much BEV cars as ICE cars in the market. Europe and China, a few years delayed. North America even more, but still, you see also on this graph, the only growing segment is battery electric vehicles. And here, you can see latest data now, also how we compare with our competition because we are the fastest-growing electrified company, and we will continue to be that. You have here competitor [ A, B and M ] compared to Volvo cars. Blue color is BEV cars and light blue is PHEVs. So you see clearly that we are leading percentage-wise compared to our competition. And we continue to lead, and you see also that we are growing both with BEVs and PHEVs. So by now, we have a fantastic balanced portfolio. On the top of the picture here, you see the mild and plug-in hybrid cars. And on the bottom, you see all our BEV cars. You see same number of cars, both on BEV and PHEV. And very important, the car on the bottom in the middle, the EX60, our late just recently launched star. So what have we achieved with that EX60 to start with, you can see this picture in 3 sections. The first section is -- so the BEV is a better car. We have lower running costs. Right now, we have better performance. We have more space and comfort because a combustion engine is not in the way in the front. So the whole cabin becomes bigger and the car is more sustainable. But we had to solve range anxiety, charging and price. These are the 3 main factors why customers are -- not all customers are willing to go for the better car. With EX60, we have solved all of these problems. The EX60 can charge as fast as an ICE car. This fills the fuel. You -- the charges are as fast as you have an average stop in the petrol station. And we price it on the BEV -- PHEV price with better margins. So we are a car company, which without subsidiaries from governments can make money, even more money with the BEV and the PHEV. So with that, I'm leaving the word back to Vanessa. Thank you so far.

Thank you, Michael. Let's talk sustainability. Sustainability of Volvo Cars is deeply embedded in how we think about long-term value creation, risk management, resilience and strategic positioning in a rapidly changing automotive industry. Today's session is designed to be practical and transparent. We want to explain where we're heading, how far we've come and how sustainability translates into real products, performance and consumer value. We'll cover 4 main areas today. First, we're going to go through our 2030 and 2040 sustainability ambitions and how they guide our strategy. Second, we'll look back at 2025 as a milestone year, what we achieved, where we have yet to reach our goals and why. And thirdly, we'll talk about why sustainability matters commercially, both from a consumer and an investor perspective. And finally, we're going to use that fantastic EX60 as a concrete case study, showing how climate action, circularity and responsible business all come together in one product. This is about showing direction, execution and accountability. So let me start with our ambitions. We deliberately set long-term sustainability targets because the transformation of mobility is not a short-term exercise. It requires sustained investment, technology shifts and collaboration across entire value chains, and those targets remain as they were. So by 2040, Volvo Cars aims to be net zero across our value chain. So that means addressing emissions, not only from our own operations, but also from the materials, the manufacturing, logistics and of course, the use of our cars. We also want to be a circular business, one where products, components and materials are designed to stay in use for as long as possible at their highest value and where recycled content is considered first before we consider using [indiscernible] resources. And nature positive, moving beyond reducing harm toward contributing to the restoration of ecosystems across the value chain. These ambitions reflect where regulation, capital markets and society are moving as well as what we believe is necessary to be a resilient premium carmaker in the decades ahead. By 2030, our key ambitions include a 65% to 75% reduction in CO2 emissions per car compared to 2018, 90% to 100% electrified sales globally, meaning every car we sell will have a cord, climate-neutral energy across our own operations and continued progress on low carbon materials, circular design and renewable energy. Electrification remains the biggest lever, but it's not the only one. As electric vehicle scale, emissions increasingly shift upstream into steel, electronics, aluminum and batteries, just as an example. Together, all of these materials account for about 80% of the emissions we're making an electric vehicle. So that's why our strategy goes beyond tailpipe emissions and looks at the entire value chain. 2025 was an important year for us. It tested our strategy in a very real market environment and gave us a check in on how we're doing towards our long-term strategy. So in 2025, 46% of our global sales were electrified, the highest share among legacy premium peers. We saw strong demand for our battery electric vehicles, even as infrastructure and incentive environment varied significantly per market. And 3 products are particularly important. The EX30, which entered production at our Ghent plant in Belgium in April 2025, helping bring electrification to a broader customer base. The EX90, which set a new benchmark for sustainable luxury by combining cutting-edge safety technology with lower life cycle emissions enabled by fully electric drivetrains and responsible material choices. And the EX 60, our new fully electric premium SUV, which is priced at a level previously associated with plug-in hybrids. This is a deliberate step to make fully electric vehicles more accessible in one of the most competitive segments. From a climate perspective, we reached several key milestones as well. In 2025, we achieved a 31% reduction in CO2 in the emissions per car compared to our 2018 baseline. This means we met our corporate ambition of a 30% to 35% reduction. This was driven primarily by electrification, supported by a 37% reduction in operational emissions versus 2018. And in manufacturing, even if we didn't reach full climate neutrality, 7 of our 9 plants now use 100% climate-neutral energy in their operations. And 4 of those achieved that status in 2025 alone. When it comes to materials, we exceeded our 2025 ambition of 25% recycled and biobased content for new car models with the EX60, which reached 27%. We reduced water withdrawal per manufactured car by 29% compared to 2018. This is an environmental win, but also a reduction of cost and risk. Circular business generated SEK 149 million in combined revenue and cost savings last year. That's circularity paying back. In 2025, we conducted 88 human rights risk audits and people policy assessments at higher risk sites across the value chain. That means site visits, interviews and continuous follow-up to drive meaningful change, strengthening the process around our commitment of protecting people across our value chain. And from a financial perspective, 97.9% of our outstanding debt qualifies as green or sustainability linked, which is very close to our ambition of 100%. But we didn't meet every 2025 ambition. Although our electrified car sales did reach 46%, that was below our 50% ambition. And green financing came very close but didn't quite reach 100%. The 2 of our manufacturing plants, Charleston and Daqing didn't quite reach climate neutrality either in the planned time line. But we are working with them to make sure that we do close that gap. And reducing emissions from materials has been very challenging. We only reached 3% reduction in -- versus 2018. However, the trend there is encouraging where we've seen that emissions are decreasing every year. The gaps that we have were partly driven by external factors like slower charging infrastructure rollout, reduced EV incentives and policy volatility in several markets. In addition, some ambitions are based on assumptions that didn't fully materialize like the contribution reduction trajectory of battery emissions. Combined with shifts in electrification pace and product mix, this resulted in lower progress than anticipated. But what's important here is that these are operational challenges, not a change in our strategic direction. We remain committed to our long-term direction and we have clear plans in place to continue driving progress. Sustainability is maturing, and we need to continue to show our value to the business and build on the value that we've already created. So last year, we introduced this framework, the sustainability value pyramid to convey that sustainability is a value driver across 3 dimensions. This framework is now the lens through which the leadership team looks at every decision. It demonstrates the full value of sustainability, focusing on both value protection and value creation. To fully realize the business value of sustainability, there's an even strong foundation. Here, we focus on ensuring compliance and mitigating risk. If the base isn't solid, the pyramid will tilt. Moving up, we focus on competitive advantage, which is both about protecting and creating value. So for example, when we reduce energy and water use, we save money. And now we're looking further into the circular economy where we can remanufacture parts, take back old vehicles and drive much better revenues and reduce costs doing that, particularly with using recycled materials. And the top of the pyramid is about consumer value, how we communicate the great things that we're doing behind the scenes to the consumers, making them choose us. And if we're not solid on the lower layers of the pyramid, we wouldn't have strong messaging at car launches or be able to substantiate sustainability communication in general. Our 2025 ambitions laid the groundwork for our road to 2040. Now we're defining the next chapter. We're updating our sustainability strategy to set clear ambitions through 2030 and put us firmly on the path to net zero, becoming a circular business and a nature positive future by 2040. This builds on what we've already achieved, not by starting over, but by accelerating what works and going further where it matters most with a clear focus on creating value for the business, for people and for the planet. In addition to this, we also recognize our 2 superpowers as a business, safety and sustainability, and they complement each other really well. We know that the world cannot be sustainable if it's not safe, and it can't be safe if it's not sustainable. So let's dive into climate action, and I will hand over to [ Aileen ], who will talk us through that. Thank you.

Thanks, Vanessa. When we talk about the new Volvo EX60, we're not just introducing another electric SUV, we're showing in very tangible terms what our climate strategy looks like when it becomes a real compelling product. The EX60 is a game changer, not only in performance and range, but in how deeply sustainability is built into every part of the car. Yes, it has zero tailpipe emissions. But more importantly, it lowers the environmental impact far beyond what happens on the road without compromising comfort, safety or driving experience. And that's crucial because going electric, while essential, is only one part of the equation. Our ambition is clear. We aim to be net zero by 2040. To get there, we have to address emissions across the entire life cycle of the car from raw material sourcing to manufacturing, logistics, the use phase and end of life. That's exactly where the EX60 comes in as an embodiment of this strategy. The EX60 followed our product sustainability steering process, which integrates sustainability factors such as CO2 and recycled content as key decision-making criteria in the design, engineering and sourcing of the car. This process enables more consistent and data-driven decarbonization across the supply chain. But don't take my word for it. Here are the results. EX60 achieves the lowest carbon footprint of any fully electric Volvo to date on par with a much smaller EX30. For premium midsized SUV, the EX60 sets a new sustainability benchmark for Volvo Cars. This car is packed with sustainability achievements. So let's dive in. Starting with manufacturing. The EX60 is built here at our plant just outside Gothenburg. This factory runs on Climate Neutral Energy, where we recently introduced a huge technological innovation, mega casting. By mega casting, we replaced hundreds of stamped parts with a single large cash component. This component is made up of 50% recycled aluminum and significantly reduces material waste, manufacturing complexity, and the total weight of the car. [indiscernible] parts also mean fewer suppliers and fewer transports, all contributing to a lower overall carbon footprint for the car. In fact, mega casting facility alone is LEED Gold certified, the first in the world to receive this level of sustainability certification. But manufacturing is only part of the story. The EX60 marks a major shift in how we work with materials. And I'll let Owain go into the details later, but I can start by saying that EX60 sets a new benchmark for recycled and low emission materials in a Volvo car. Without compromising quality or durability, it contains 27% recycled content in the complete car, an impressive achievement. We've reached nearly 50% recycled aluminum and partnered with SSAB to introduce their near zero emission steel in the car body structure. Moving over to the battery. The battery is often the single biggest contributor to an electric car's carbon footprint. And this is another area where the EX60 pushes forward. Thanks to our cell to body technology, the battery is integrated directly into the vehicle structure. This design reduces weight, increases energy density and contributes to our longest electric range yet. The battery cells contain 30% recycled metals, helping reduce dependence on newly mined materials. At the same time, the EX60's new 800-volt electrical system improves both efficiency and performance. It allows for faster charging, more efficient energy use and better overall battery management. All of this information can be found in the digital battery passport, reflecting our belief that providing customers with clear and credible information is essential from form decision-making. So much hard work has been done across this car. I've only had time to mention a few key contributors. So if you want to even deeper dive into the measures we've taken to reduce our carbon footprint on the EX60, we've published the full carbon footprint report on our website according to the ISO standard. Beyond this specific car, we've also strengthened our internal data model to calculate the precise carbon footprint of every car that rolls off the line, connecting the material composition of parts to more specific generic and supplier data, making it possible to substantiate verified emission reductions. And as we bring back the focus to EX60, what does this car represent? It shows that our climate strategy is not theoretical. It's engineered into our cars, embedded in our factories and shared transparently with our customers. The EX60 proves that we can deliver a spacious premium electric SUV with a carbon footprint of a much smaller car, and that sustainable progress and great driving experiences can and must go hand in hand. The EX60 is not a one-off program. This represents the future of our car programs. And with that, I'll turn it over to Owain to share some more about our circular economy work.

Thank you, Aileen. As sustainability is maturing, the role of the secular economy becomes clearer. And in 2025, we generated a total of SEK 1.5 billion in revenue and cost savings, and it represents the operating model by which we deliver the planetary and people improvements alongside business benefits, such as reduced exposure to energy price volatility and regional access to critical raw materials. At its core, circularity is about productivity of resources. Less is best and then secondary come first. Aileen has already highlighted the benefits of mega casting, which showcase a great example of resource efficiency. But I want to highlight another development where we have increasingly improved our efficiency over time with a 7% increase in the efficiency of the stamping of EX60, which saves resources and cost. But we also want to use what's left over at the highest value possible. That is why we have been focusing on closed loops, where the scrap is returned, remelted, reused and brought back to us. And in doing this, there is no compromise on safety, strength or durability. The EX 60 is the first car in serial production to use SSAB Zero steel in key components. It is a major step forward in decarbonizing one of our largest material hotspots. Steel drives about 25% of our material related emissions, making it a critical lever for reduction of our CO2 footprint. SSAB Zero is produced from over 90% recycled materials, and it uses fossil-free electricity and biogas to deliver about 70% lower CO2 compared to conventional steel. But we know that we need a range of partners to scale this up. Therefore, we've also collaborated on a project called ScanLoop with Salzgitter. This uses the same rail loop that delivers the scrap to us -- sorry, the material to us, uses it to return the scrap back to the supplier and it avoids empty backhauling. And this train is powered by climate neutral electricity. It creates an end-to-end closed-loop production and transport loop. That improves material efficiency and logistics emissions. Additionally, I am pleased to share that on the 1st of February this year, we kicked off a closed-loop partnership in the EU for aluminum, utilizing our sheet scrap and turning it back into very high-grade sheet aluminum. We have had a couple of aluminum closed loops set up in China for a few years, but this expansion really supports the generation of local closed loops to mitigate risks from scrap access as well as price volatility. These show how circular material flows can be good for business, cut emissions and strengthen supply resilience. These are at scale. It's important to highlight, though, we don't do any of this alone. This is through collaborations, and these collaborations represent a new way of working in a more circular operating fashion. And shows that we're valuing resources highly. We know that customers moving to electric vehicles appreciate reassuring offers around batteries. And that's why the EX60 battery warranty is our longest yet. It's 10 years and up to 200,000 kilometers. Durability is at the core of our business and part of the portfolio of circular initiatives. The EX60 has been designed for targeted repairs of serviceable components to avoid full system replacements. The outcome of this is fewer write-offs and the battery remains replaceable even though it's structural. And customers get total -- lower total cost of ownership and there are residual -- higher residual values that lower risks for our customers, leasing partners and insurers. Alongside this, in Q2 this year, we've just launched the first refurbished parts offer, which generates new circular revenue streams, and it complements the remanufacturing business, which recently turned 80 years old. So although Michael highlighted that we started in 1970 talking about environmental, circularity has been with us for a really long time, too. These parts target -- these refurbished parts target older cars to reduce their repair costs but maintain that OEM quality and warranty. Plus, they reduced the emissions per part by 50% to 90%. Becoming a circular business delivers business resilience alongside the sustainability benefits, and it directly supports the value pyramid that Vanessa mentioned earlier. Customers get expanded lifetime services supporting lower total cost of ownership and higher residual values while also leading us to have a wider portfolio of revenue streams and profit pools. Competitive advantage comes from driving efficiency in our operations and increasing recycled steel and aluminum, which use 75% and 95% less energy, respectively. This helps to reduce our exposure to raw material and energy price exposure and volatility. And closed material loops limit supply disruption as well as set us up for future mandated recycled content levels. But we still have a long way to go to achieve our goal of becoming a circular business. We are heading in the right direction and building the right collaborative ecosystem to make this happen, but we have more to do. Right. I'll hand over to [ Ida ] now, who's going to take us through the human rights and responsible business progress. Thank you.

Great. Thank you. So let's talk about people now. At Volvo Cars, we put people first in and around our cars. We safeguard responsible business conduct throughout the complete value chain, and we drive a high-performing organization built on inclusion, equality and well-being. In general, we impact quite a lot of people throughout our quite long and complex value chains from the extractions of raw materials to the end-of-life treatment of our products, protecting and improving lives throughout all these stages of the value chain is central to our sustainability strategy. And it underpins our commitment to human rights, respecting and promoting human rights. Previously, you heard Vanessa talk about our sustainability framework and our sustainability value pyramid. And that the pyramid would tilt if there is no solid base. We apply the same type of logic to people. I mean all the great achievements that you heard my colleagues talk about on climate action and circular economy would mean very little if we would not, at the same time, take care of the people, both in our value chain and in the wider society. But let's look at some specific examples even here. We've already talked about our strong focus on materials. And one particular important factor is our ambition to achieve full traceability on all critical raw materials in our cars. Only if we know who is involved in our supply chain and where each activity takes place, then we can, for sure, address the challenges and the risks that we have identified. The EX60 battery supply chain as an example is part of our blockchain-based traceability system, establishing a chain of custody for cobalt, nickel, lithium and graphite from mine to car. This blockchain traceability system allows us to know our full supply chain and to identify and address the risks that we have identified. It allows us to engage with relevant suppliers directly and meaningful, and it increases the transparency, customers, investors and regulators. This year, we've also taken further steps to make sure that we can map and trace more supply chains, not just core battery raw materials connected, such as steel, aluminum and natural rubber. But let's go back and apply a more strategic lens again. Let's talk about due diligence. We apply a risk-based due diligence approach. We do basic due diligence on a broad basis, and we focus enhanced activities on high-risk supply chains. Our human rights compliance program built on international guidelines and in including the identification of our most [indiscernible] human rights issues is the basis and guide for the organization in order for them to understand where and when each risk requires enhanced due diligence activities. Our due diligence activities form an ongoing process. They're both proactive and reactive. And they are continuously improved through engagement with the suppliers and other relevant stakeholders. Examples of these enhanced due diligence activities for suppliers of high risks are, for example, on-site audits, tailored supply trainings and corrective action plans where issues are identified and addressed. Audits are actually our window towards workers and people in our value chain. They help us to secure a broad range of perspectives, specifically from vulnerable groups. To fully understand and influence our impact, workers and representatives from surrounding communities are interviewed during these audits. And the results serve as a valuable input to our continuous improvement of human rights due diligence. During 2025, we conducted a total of 88 on-site audits, where 23 were audits in the battery supply chain beyond our directly contracted business partners. And 85% of the corrective action plans that were generated were addressed and closed. We also trained both suppliers key staff as well as our own staff on responsible sourcing practices with particular focus on the role of leaders and the expectations of compliance regulation coming ahead of us, such as the EU battery regulation and the European deforestation regulation. No global supply chain is risk-free. But transparency, accountability and continuous improvement is how we manage those risks responsibly. With that, I hand over to Fredrik, our CFO.

Thank you. So talking about our financials. I guess they need to be sustainable both from a business perspective, but also from an environmental perspective. And we are in a quite good [ pole ] position in both areas. So on an overall level, we are -- we have invested quite drastically in the past, and I'll show you a slide. And those investments have been directed towards making more sustainable products at a lower cost, which really hits both marks of creating more value from sustainability. And we're set to harvest on those investments. We have a market which is moving. We are a bit more pragmatic in our transition to electrification. We are tailoring the speeds to different markets. But the direction, as Vanessa said, is very clear. And as Michael also said, electric cars are truly the future, and that is what we are going all in on. In terms of making this transition financially sustainable and also leveraging scale, we are also leveraging Geely, our sister company to a larger extent. They are today the third largest player in the world when it comes to new energy vehicles. And together with them, we can also make our business more sustainable. And we're financing all of this, of course, with green financing as we have started many years ago. But double clicking a bit on our investments. So this graph basically shows how much we have invested in the past. And as you can see, we are coming down quite a big amount of investments. And that's good in terms of building a sustainable business, but actually also good because we're starting to harvest on some of the really big sustainability investments we've done. We have and are finalizing some of the one-off infrastructure investments that we have done linked to our SPA3 platform and the EX60 in specific. I think Aileen talked about it. We have invested in mega casting, for instance. That's a big CapEx investment, but it does allow us to use a lot more renewable or recycled aluminum. We have done large investments into cell to body also going into the EX60. And that basically means less materials going into the car, 70 kilos less weight, 25% lower cost. So it hits all marks. It's a better customer experience, a better driving car. It is better for the environment car with less materials used and it is cheaper to produce. Similar when it comes to software. We are creating cars which are updatable. We've just updated 2.5 million cars to a better infotainment system. Every Volvo owner pretty much since 2020, 2021 just got an upgrade on their screen, making that car feeling fresher for long, which is also part of sustainability, making sure that the cars last longer. They're also now getting Google Gemini. So your 2021 Volvo EX40 or XC40 as it was called at the time will basically have probably the West world's best AI agent to chat with, which is being rolled out this year. And we can do that because we are streamlining all our resources and efforts into our core compute software and leveraging the fact that we are recognized by Standard & Poor's as the only Western OEM on the highest level of software-defined vehicles. So this is good for business and good for sustainability. In terms of funding these investments, then we do that with green financing. We issued our fifth green bond last year. And we have just updated our green financing framework. We remain dark green rated from S&P. And we use this external financing only into our future investments linked to electrification. To date, 97.9% of our debt is now green with the latest bond. And this will go naturally to 100% as we amortize off some of the last loans we have, which are not green. In terms of EU taxonomy, we have a quite low alignment. And that is because we have a very conservative interpretation of the do no -- DNSH criteria, no significant harm. And we are committed to aligning all our future BEVs to the EU taxonomy as well. We're starting doing that with EX60 and all the investments going into the future BEV are aligned. I think the challenge we've had and especially if we look at the current cars is that there are, especially substances, which is our only problem, I would say. There are some substances, which are hard to replace, where there may or may not be another option. They're typically not our direct value chain, so it's hard to analyze. And in some areas, we have seen conflicts also where we have since 1972 had environment as a core value, as Michael said. But since 1927 we've had safety as a core value. And there are these trade-offs in terms of flame retardants, in terms of brittleness from UV, which are challenging, to be honest. With the EX60, we're taking the next step in that and focusing on it going forward. That also means that our OpEx share of aligned will increase and CapEx will increase and turnover will increase. And you will start to see this coming quite soon as the EX60 has now started production and that car and all cars on that platform are fully aligned. So to summarize today a bit, I guess, sustainability is at the core of what we do. And electrification is the core of our sustainability. We are selling more cars with a cord than any of our competitors. We have very challenging sustainability ambitions for 2030 and 2040, but we are making progress, and we have a plan to get there. We are doing that by embedding this in our products, in our operations and in finance. And we see that this combination is really driving value. The new beginning for the company and also a new beginning for sustainability is really the EX60, which we've talked a lot about. But it is best-in-class product, and it is more sustainable than ever. And that's really where our business will start pivoting into the next direction in terms of both profit and environment. So with that, let me hand over to Q&A.

Thank you to all of our speakers, and I'll ask you to join me here as well. [Operator Instructions] I'll start with a few that have already come in, and we'll to answer as many as possible. Maybe first, let's who want to take this. But we see that the countries and different regulations are backing on sustainability ambitions, not the least EU with delayed ICE ban. How does this impact Volvo Cars and our sustainability strategy?

For me, it doesn't matter. I mean we do sustainability because we want to be a car company, which is good for the environment, good for the people. If countries are changing their minds, we don't. So it's very clear to me.

Good, clear answer. Then we have a question on our ties to Geely. Besides the access to low-cost high tech, are there any opportunities to do more with Volvo Cars with Geely to drive climate action and circularity?

I think a great question there. And yes, it does give us a lot of opportunity because being able to reach through Geely a full other group of suppliers and finding low-cost opportunities, also finding opportunities within circularity gives us great opportunity. So we're very happy about this. Of course, we always maintain our standards, right? And we work together to find the best solution to go forward.

Great. Then a bit on blockchain. You mentioned using blockchain for some of your raw materials. How do you work further with the data that you collect? Maybe, [indiscernible].

Yes, exactly. Like I said, just knowing who is involved and where they are located in the entire supply chain is a huge value for us because then we can address the activities, strongly focus on exactly what, where to address. We audit every tier in our battery supply chain from the raw material line all the way to the traders and the cathode and all producers, et cetera. So that's one of the key activities that we do. And the blockchain is, of course, a digital safety net for us to make sure that if there are changes, we know right away, and we can address it. So just being sure that there is consistency and transparency is that what we do with it.

I'm wondering we might need Owain for the next question on battery recycling. Is there scale to authority and will increased regionalization have an impact of how we work with battery recyclability?

Yes. So good question. And there is scale globally. And there isn't so much scale locally around Europe. We know that there's a significant and increasing pressure on local supply chains around the IAA as well. So I think there is a need to do more investment and collaboration in the European markets on advanced battery recycling, particularly refinement of the black mass. But technically, it's viable. Economically, it seems sensible. But we just need more global footprint really and local footprint.

That's actually the questions that we have currently received. I'll give a moment if anyone is having any further questions. Otherwise, I don't know if you want to say any ending words, Vanessa.

I think just thanks, everybody, for joining us today. We really want to show that we continue to take strides forward, really driving value with sustainability to build a stronger business for Volvo Cars. So thank you very much. And if you have any additional questions, do just send them later on.

Thank you so much.