Autoliv Takes Major Steps Toward Climate Goals with Renewable Energy Agreements

Advancing Sustainability: Autoliv's Pathway to Renewable Energy

Autoliv, a global leader in automotive safety systems, has recently initiated two pivotal Virtual Power Purchase Agreements (VPPAs) with Alight and Eurowind Energy, marking a significant step forward in its commitment to sustainability. These partnerships are designed to bolster the company’s energy resilience and facilitate the transition towards 100% renewable energy sources for its European operations.

The New Renewable Energy Agreements

The agreements with Alight, a Swedish solar energy provider, and Eurowind Energy from Denmark are vital in securing a consistent and cost-effective energy supply, providing Autoliv with a safeguard against future energy price volatility. As part of these contracts, Autoliv will be able to procure renewable electricity for an extended period, specifically from 2027 to 2039, thereby ensuring stability in its operations.

In detail, the VPPA with Alight will lead to the establishment of a solar power park in Eurajoki, Finland. Expected to produce about 100 GWh of electricity annually, this solar setup will meet the energy needs of approximately 20,000 households. Construction is anticipated to begin this spring, with operations set to commence in 2026. Meanwhile, the arrangement with Eurowind Energy involves a wind energy project in Romania, specifically the Pecineaga Wind Park, projected to generate around 176 GWh each year upon its completion in 2027.

The innovative combination of solar and wind technologies is engineered to optimize energy production during both day and night, highlighting an integrated approach to renewable energy generation that is adaptive to the continent's varying climatic conditions.

Commitment to Decarbonization

Magnus Jarlegren, President of Autoliv Europe, underscores the importance of these agreements, stating, "The projects with Alight and Eurowind Energy mark a significant milestone in our journey towards decarbonization, reinforcing our position as a sustainability leader in the automotive industry." The initiatives will not only enhance Autoliv's operational sustainability but are also critical in supporting customers who prioritize environmentally friendly products.

Autoliv's ambitious climate strategy, initiated in 2021, aims for carbon neutrality within its own operations by 2030, with a broader goal of achieving net-zero emissions across its entire supply chain by 2040. This strategic focus on sustainability aligns with the increasing global emphasis on low-carbon solutions and responsible manufacturing practices.

A Future-Oriented Strategy

The shift to renewable energy sources and the establishment of these VPPAs illustrate Autoliv's proactive approach towards sustainable business practices. Kaisa Tarna-Mani, Vice President of Sustainability at Autoliv, emphasizes the strategic significance of these agreements in fostering a low-carbon operational framework.

"At Autoliv, we are dedicated to conducting our business in an environmentally responsible manner while delivering high-quality products to our customers. We view our Virtual Power Purchase Agreements as a cornerstone of our low-carbon operations," she stated.

As Autoliv continues to navigate the evolving landscape of energy consumption and sustainability, the company’s initiatives reflect a robust commitment to reducing greenhouse gas emissions and promoting a circular economy. With operations spanning 25 countries and a workforce exceeding 65,000, Autoliv is poised to be at the forefront of transforming the automotive industry through innovative safety and sustainability solutions.

In conclusion, Autoliv’s endeavor to secure renewable energy through strategic partnerships not only contributes to its operational goals but also addresses the pressing need for sustainable practices in the automotive sector. The journey towards achieving substantial climate targets continues as the company lays down the groundwork for a greener tomorrow in the automotive industry.