Niklas Gustafsson, Senior Vice President & Chief Sustainability Officer — Sustainability and Corporate Affairs, Volvo Group, speaks to Praveen Bose on the importance of sustainability in the automotive sector and where it is likely to lead in the future. Excerpts:
How long have you been with Volvo?
I have been with Volvo for 26 years. I have been involved with the group from the age of 17 years. I did my engineering from a school run by Volvo.
How long have you been into issues like sustainability?
After becoming an engineer, I worked on engines and ultratech fuels. I got interested in societal challenges some 15 years ago. Now, much of my focus is on electromobility, automation and connectivity. Much of this is for commercial vehicles, especially trucks and buses.
How do you see sustainability from business point of view?
The Volvo Group takes social, economic and environmental responsibility to manage risks, create business opportunities and build trust. It is an effective way to contribute to the development and welfare of the society and fulfill the Volvo Group’s vision i.e. to become the world leader in sustainable transport solutions.
How different is it when it comes to public transport, such as buses?
If there are bus lanes, a thinking is possible. So traffic system and infrastructure are issues. Volvo’s technology is ready to go today. Everyone is moving into the area. They are being tested in real life. In Sweden, it’s moving fast towards automation, electromobility and connection. This takes care of the environment. At the same time it takes care of safety too.
On the safety front has there been a change in focus?
Earlier, it was about the safety of drivers and passengers, today it’s about the safety of cyclists and pedestrians. As a result of this, while the cost will go up, it could vary from market to market. So, we are not so much into high value. Traffic safety will be the number one challenge. The implementation of that is both about social and economic safety. Social would mean traffic safety.
How relevant would it be to the Smart City project?
Sustainability would be most useful and relevant in the Smart City project that is being implemented across 100 cities. For electromobility, Volvo has already received orders for five such buses. We have already delivered two of them. This brings down the fuel consumption by a big factor. Electric bus usage will be cheaper.
What are the components in sustainability?
Environment, society and economy are the three components of sustainability. On the environment front, the focus is on changing from materials and impact of materials on environment. Meanwhile, making it inclusive is the challenge.