Other forms of pollution caused by the use phase of vehicles include noise pollution and waste. The improper disposal of EOL vehicles generates 7-8 million tons of waste globally every year.107 Soil contamination from lead battery manufacturing and recycling is of particular concern in many developing African countries lacking adequate infrastructure for proper disposal and treatment of vehicles, which are often imported from regions like the US and EU. As developed markets transition away from ICE vehicles, care must be taken to avoid burdening less developed markets with their disposal.108 Many countries have implemented policies and regulations that place controls on pollution levels in the automotive sector. For manufacturing, regulations are strongest in the EU, where the Industrial Emissions Directive requires companies to implement the best available techniques (BAT) to cut the use and impacts of hazardous chemicals.109 For downstream pollution, the US Environmental Protection Agency strengthened standards on air pollutant emissions for light- and medium- duty vehicles in 2024,110 and the EU revised the Ambient Air Quality Directive in 2024 to impose stricter limits on pollutants.111 Countries have also imposed regulations on automotive noise levels. For example, China adopted new regulations in 2021,112 and in the EU there are also requirements for noise labelling in dealerships.113 More still needs to be done, however. Both regulators and automotive companies, in partnership with other stakeholders, need to continue to advance action to mitigate pollution and its environmental and social impacts across the value chain, and avoid the longer-term liability of EOL vehicle waste. The automotive sector relies heavily on water for production. Indeed, 30 million m3 (cubic metres) of water were used in vehicle manufacturing in the EU in 2022,114 and the sector has a CDP Water Watch impact rating of “very high” (the second highest category).115 The midstream manufacturing of each vehicle requires 5,000 litres of water,116 however, life cycle analysis indicates that car production requires 400,000-450,000 litres of water (mainly for metals sourcing and electrical component manufacturing), which indicates that 99% of water is consumed upstream.117 This total is equivalent to over 10 years of household water supply for the average person in Europe.118 Upstream, water is critical for mining operations and energy, chemicals, fibre, rubber and tyre production. It’s also essential for livestock farming for leather, and forest products for packaging. Where operations lie in arid places, impacts can be magnified locally. For example, the World Resources Institute found that 16% of critical mineral mines, deposits and districts are located in highly water-stressed areas, and in these locations, at least 40% of water supply is required to meet existing demand each year.119 In automotive manufacturing operations, some of the primary uses of water include machinery and part cooling, paint shops,120 leak testing, and pretreatment and cleaning of the body shell. Similarly, impacts can be magnified where operations lie in arid places. For example, in 2022, 23% of water used in Volvo Cars’ own operations was drawn from areas with high or very high water stress across Europe, North America and Asia.121 2.3 Water use 2.4 Land-use change and ecosystem disturbance Across the value chain, from raw materials to EOL vehicles, land-use change is primarily driven by upstream input industry activities. In particular, the production of high-impact commodities such as metals, rubber and leather, pulp and paper for packaging, and energy supply, can result in: –Land clearance and ecosystem fragmentation –Soil degradation, erosion and compaction, and increasing flows of sediment into nearby rivers –Increase in non-natural fires and landslides from the use of heavy machinery and explosives –Disruption or diversion of surface water regimes and groundwater systems Impacts are highly material-specific and clearly attributable to the automotive sector. For example: –For metals, 8% of mining-related deforestation is attributable to the motor vehicle sector (the second largest contributor after the construction sector).122 –Approximately 70% of natural rubber is used to produce tyres.123 Meanwhile, 90% of global rubber is produced in South-East Asia, where Car production requires 400,000- 450,000 litres of water (mainly for metals sourcing and electrical component manufacturing). Nature Positive: Role of the Automotive Sector 22

Nature Positive Role of the Automotive Sector