How Volvo Cars’ supply chain finance will make its cars greener

VIDEO | Reducing car emissions used to be all about their rear pipe smoke. With Volvo Cars’ products becoming purely electric, the group is shifting focus to its suppliers – and setting up a supply chain financing program to encourage their environmental transition. Treasury development manager Patrik Marklund joined Treasury 360° Nordic to share the story of how. 

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At the frontier of corporate sustainability practices, financial incentives for suppliers are increasingly put in place within frameworks managed by the treasury. At Volvo Cars, a new “SCF” programme offers better terms for suppliers who credibly commit to a rapid environmental transition.

Starting from the strategic objectives, Patrik Marklund described the project – discussing the collaboration with partners and internal stakeholders, the design of performance indicators, the systems to support it all … and the learnings underway.


Suppliers who want to enjoy benefits under the programme are segmented into two categories: those who commit to running their plants on 100-percent climate neutral energy by 2025, and those who have actually accomplished it.


• News around Treasury 360° Nordic 2023, on 20 April, is gathered here.
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