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Friday 5
Driving ambition
13 September, 2024
Volvo, the Swedish automotive giant, has been a pioneer in the electric vehicle market, and was one of the first to commit to a complete switch to electric. However, it recently revised its target to sell only electric cars by 2030. Citing the decline in growth of the electric vehicle market and consumer concerns about charging infrastructure as key reasons for pulling back, Volvo now aims to turn 90 to 100% of its sales to electric or hybrid by 2030.
While Volvo might not be on track for 100% electrification, it has undeniably made significant progress. However, critics are quick to pounce on where businesses are falling short – a tactic increasingly used by the anti-ESG movement to undermine corporate commitments to sustainability.
This phenomenon – focusing on the shortfall rather than substantial gains – can be detrimental to the broader climate cause. Businesses won’t always meet their targets, especially in a landscape shaped by evolving technologies, supply chain uncertainties, and shifting policy and regulation. And in some cases achieving targets is not completely within a business’s control – the Volvo example is a case in point, given the importance of the charging infrastructure to the overall electric car equation. Communicating these nuances isn’t always easy – but it is essential to maintaining credibility and managing expectations, and we would encourage companies to do what they can from the start to help create a narrative that sees targets ‘in the round,’ to manage expectations and build context around the road to progress.
And if a narrative of falling short dominates, it risks discouraging other businesses from setting ambitious goals. The focus should therefore be on progress over perfection. Volvo’s efforts in pushing for an electric vehicle market have driven substantial industry shifts. Their ambition, even if not perfectly realized, sets a benchmark for others. Criticism is necessary for accountability, but it must be constructive. Let’s not weaponize imperfection but instead use it as a stepping stone to greater achievements.
By Lucy Bell