Green Procurement Playbook 2025

Volvo Group – driving supplier collaboration for decarbonization Case study 5 With over 50,000 suppliers, Volvo Group recognized early that meeting its net-zero commitment by 2040 would require deep collaboration with suppliers, not just internal action. Sustainability is a core part of procurement, with expectations, joint initiatives and targeted support embedded across the supplier base. The company shifted from broad asks to structured engagement, partnering with suppliers in its decarbonization journey. How? –Co-developing lower-carbon solutions: Volvo works closely with suppliers to find practical ways to cut emissions, such as using recycled resin in a component. Volvo backed the idea, helped test it and brought it into production. Giving suppliers room to bring ideas forward can lead to real, scalable results. –Supplier summits and peer learning: Volvo’s annual global supplier summit has become a platform for leadership in sustainability, where suppliers share real-world best practices. –Capability building and digital tools: Suppliers receive tailored support through Volvo’s knowledge hub, offering decarbonization guides, emissions calculators and playbooks. An online platform simulates emissions scenarios and explores reduction levers. –Tailored engagement models: The company co-develops long-term roadmaps with high- impact, mature partners. Other suppliers receive standard tools and trainings. In hard- to-reach tiers, Volvo partners with upstream players to align and scale up impact. Impact Volvo’s supplier engagement has turned expectations into action. More suppliers are offering green solutions, leveraging shared tools and participating in collective innovation. Collaboration is now embedded across the supply chain, with procurement as both enabler and catalyst. Green Procurement Playbook: The CPO’s Guide to Delivering Value for Business and Planet 38