Sustainable construction equipment is poised to play a transformative role in the construction industry.

Dimitrov Krishnan, Managing Director, Volvo CE India

How important is sustainability to your company’s mission and values?

Sustainability is at the core of our company’s mission and values. We have set a strategy with targets and ambitions in three main areas where we can make a significant impact – People, Climate & Resources. The transition to fossil-free and sustainable transport, mobility and infrastructure solutions is at the heart of everything we do at Volvo. We are committed to developing and offering sustainable solutions that enhance productivity while reducing emissions, energy consumption, and waste. Our focus on sustainability drives innovation and ensures a better future for both our customers and the planet. To set ourselves specific targets, we have committed to Science Based Targets to achieve net-zero emissions across our value chain by 2040 and 35% fully electric sales by 2030 as an interim goal.

What types of sustainable construction equipment does your company manufacture, and how do they differ from traditional equipment?

Volvo Construction Equipment has the widest electric construction equipment portfolio globally. Its sustainable power product range includes electric excavators such as ECR18 (1.8T), EC18 (2T), ECR25 (2.7T), EC55 (5.8T), EC230 (23-26T) and electric wheel loaders such as L20 (1.8T), L25 (2T). We have also showcased several concepts which are being developed such as an autonomous electric wheel loader LX03 and autonomous electric hauler HX1. These are operated using electric motors powered by advanced Lithium-ion batteries and have host of advanced technologies which make them highly efficient, quiet, and emission-free.

What specific technologies or features do you incorporate into your sustainable construction equipment (e.g. electric or hybrid power, reduced emissions, recyclable materials)?

Our sustainable construction equipment portfolio is currently using electric drivetrain powered by Lithium-ion batteries. We are also investing in exploration of several other promising technologies such as using Hydrogen as a fuel for ICE machines, Hydrogen fuel cells, Grid-connected-electric machines, efficient hydraulics, and energy recuperation to amplify our sustainable power products portfolio. We have partnered with SSAB to enable us to use fossil-free steel in our machines. We have our group company Volvo Energy which is deeply involved in the circularity aspect of the battery pack right from its production or procurement to its optimization during usage, to its usage after it has served the machine over its usable life, and finally to its end-of-life disposal and recycling.

How does the cost of sustainable construction equipment compare to traditional equipment, and what steps is your company taking to make sustainable equipment more affordable?

The cost of sustainable construction equipment, particularly battery-powered electric machines, generally entails
a higher upfront investment but offers lower operating costs compared to traditional equipment. At our company,
we are actively addressing this aspect to make sustainable equipment more affordable. One approach we are taking is by utilizing advanced batteries and highly efficient motor technologies. By integrating these components seamlessly, we can create electric drivetrains that are exceptionally efficient. This not only enhances the performance of the equipment but also contributes to reducing operating costs over time.

Furthermore, we are carefully specifying each sustainable product to align with the specific operating requirements of our customers. By doing so, we can ensure that the equipment offers a cost advantage over its internal combustion engine (ICE) counterparts, particularly when considering the Total Cost of Ownership (TCO). Through these measures, we aim to make sustainable construction equipment more accessible and economically viable for our customers. By optimizing performance, minimizing operational expenses, and considering the total cost of ownership, we strive to bridge the gap between traditional and sustainable equipment in terms of affordability.

What role do you believe sustainable construction equipment will play in the future of the construction industry, and how is your company preparing for this shift?

Sustainable construction equipment is poised to play a transformative role in the construction industry, driven by compelling facts and statistics. According to a report by McKinsey, construction equipment accounts for approximately 10% of global greenhouse gas emissions. By adopting sustainable machinery, such as electric and hybrid solutions, the industry can significantly reduce its carbon footprint. For instance, Volvo Construction Equipment’s electric compact excavators have been shown to produce zero emissions at the point of use, offering a substantial environmental advantage. Furthermore, a study by the International Council on Clean Transportation found that electrifying construction equipment could result in a 30-40% reduction in total cost of ownership over a 10-year period. These statistics highlight the immense potential of sustainable construction equipment to drive both environmental and economic benefits, and at Volvo Construction Equipment, we are fully committed to being at the forefront of this transformative shift.

What other steps is your company taking to promote sustainability in the construction industry beyond producing sustainable equipment?

Volvo CE is not only focused on producing sustainable equipment, but also spearheading sustainability initiatives to drive positive change in the construction industry. Our commitment extends beyond products to encompass various impactful endeavors.

One such endeavor is Vera, a series of innovation workshops aimed at inspiring young girls to explore their potential in science and technology. By actively encouraging and empowering girls to consider careers in the technology domain, we are fostering diversity and inclusivity in the industry, ultimately leading to a brighter future.

Additionally, Volvo Construction Equipment has developed a comprehensive step-by-step program that facilitates the realization of CO₂ neutrality goals. Regardless of the machinery brand or starting point, this program leverages data, connectivity, and site-specific solutions to guide companies on their journey towards net-zero emissions. Through collaborative efforts, we aim to accelerate progress and enable significant advancements in sustainability, taking one meaningful step at a time.

These initiatives exemplify our unwavering commitment to sustainability, transcending equipment production to actively promote positive change in the construction industry. By inspiring and empowering young talent, and providing practical pathways towards carbon neutrality, Volvo CE is actively shaping a greener and more sustainable future for the construction sector.

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