VOLVO’S ENVIRONMENTAL HERITAGE / ACHIEVEMENTS

1945 • Volvo introduces remanufactured spare parts – an exchange system still in use 1972 • UN Global conference on the environment in Stockholm: Volvo raises the critical role of the car in society 1976 • Three-way catalytic converter with oxygen sensor (Lambdasond®) removes up to 90% of noxious exhaust fumes – first on market 1982 • Torslanda plant begins to use waste heat from local oil refinery 1987 • Torslanda water treatment plant removes 90% of harmful effluents 1989 • New, proactive environmental policy • Life-cycle assessment using EPS (Environmental Priority Strategies in product design) • Volvo demonstrates alcohol power technology: cleanest car tested to date • Introduction of internal environmental audits • Plastics in marked to facilitate recycling 1990 • First award of Volvo Environment Prize 1991 • Volvo Cars first to introduce car free of ozone-depleting chlorofluorocarbons (CFCs) • Paintshop at Torslanda plant is the world’s cleanest 1992 • Asbestos eliminated from car production • Volvo Environmental Concept Car (ECC) 1993 • Chlorofluorocarbons (CFCs) no longer used in climate systems of series-produced Volvo cars 1994 • ECRIS, a new research facility for environmentally optimised dismantling 1995 • Volvo Bi-Fuel, Volvo Cars’ first generation of methane-driven cars • Introduction of standards to improve dealers’ environmental activities • Launch of Car & Eco Care, the Volvo Cars range of environmentally labeled car care products 1996 • Dialogue on the Environment provides environmental training for all employees • Introduction of environmental standards for suppliers 1998 • Introduction of PremAir® – a radiator coating designed to convert harmful ground-level ozone into pure oxygen • Volvo Cars is first carmaker to publish environmental product information (EPI) for cars (originally named EPD) 1999 • IAQS (Interior Air Quality System) introduced for cleaner cabin air 2000 • Tailpipe emission control technology from Volvo Cars’ ULEV engines becomes available globally 2001 • New generation of Bi-Fuel cars 2002 • Volvo Adventure environmental education program for young people (formerly Volvo Young Environmentalist Award) • PZEV engine introduced in – second on market • New Volvo cars designed for 85% recyclability 2003 • Volvo Cars achieves global ISO 14001 certification 2004 • Introduction of particulate filter for diesel engines • Volvo Cars’ new V8 engine is world’s first V8 to comply with ULEV II • Volvo 3CC sustainable mobility concept car unveiled • 1.6D is first Volvo car with fuel consumption less than 5 l/100 km 2005 • Bioethanol () powered Volvo S40/V50 Flexifuel launched in Sweden 2006 • Volvo Flexifuel launched in eight more markets 2007 • IAQS & Automatic ventilation recommended by Swedish Asthma & Allergy Association • Volvo Flexifuel offer launched in several more European markets • Volvo Flexifuel offer broadened – 3 models and 5 engines introduced • Volvo ReCharge Concept – a plug-in hybrid with 100 km battery range – introduced 2008 • Volvo uses only green electricity (hydropower) in European manufacturing units • Powershift technology introduced – automatic with 8% lower fuel consumption compared to conventional automatic transmissions - available in C30/C70/S40/V50

• /S40/V50 1.6D DRIVE-E introduced – with CO2 emissions of 115 (C30) and 118 g/km (S40 and V50) • Volvo Car Corporation is the first car manufacturer to own a wind tunnel that fully simulates the airflow around and underneath the car’s body, combined with wheel rotation on a flat road surface • The Swedish Asthma and Allergy Association recommends the , V70, XC70 and XC60 when equipped with IAQS and automated ventilation • 2.5FT/Gas announced in Sweden for five fuels: E85, , CNG, hythane (biomethane with low-blend of hydrogen) and petrol • Tri-Fuel introduced in Italy – for E85, LPG and petrol; and Volvo V50 Multifuel introduced in Switzerland – for 4 fuels: E85, biogas, CNG and petrol 2009 • DRIVE-E low-emission range rolled out to 7 models within the Volvo range – the Volvo C30, S40, V50, V70, XC60, XC70 and S80

• New start/stop technology fitted to S40, C30 and V50 DRIVE-E models, meaning CO2 emissions cut to just 104 g/km • Volvo S40 DRIVE-E start/stop wins What Car? Green Car of the Year

2010 • CO2 emissions on C30, S40 and V50 reduced yet further to 99g/km • It is announced the Volvo C30, S40 and V50 will be London Congestion Charge Exempt from January 2011 2011 • Volvo and Siemens announce a joint venture to produce electric engines on a larger scale than ever before. Volvo’s C30 BEV goes into commercial production 2012 • Volvo produces the first diesel plug-in hybrid – the V60 PHEV 2013 • DRIVE-E variants for the all-new S60 and V60 are launched • Volvo doubles production of its V60 PHEV. The second generation of Volvos C30 BEV goes into production • Volvo redefines efficient manufacturing by replacing its entire engine line-up with just two power plants: a four-cylinder petrol Drive-E engine and a four-cylinder Drive-E . By switching the focus to engine output rather than size, Volvo makes huge inroads in terms of efficiency and emissions • Volvo introduces its Scalable Platform Architecture (SPA) - a single platform that can be used for all its vehicles ranging from roadsters to seven-seat SUVs. This drastically lowers environmental impact at a manufacturing level