Why Polestar Is Doubling Down on Net Zero as Rivals Pull Back on EVs

7bvv(a4ohs(6hmngc6s8cy{[_media_dl_2.png Massachusetts Institute of Techn

Article content

(Bloomberg) — As many automakers scrap electric models and steer production back to gas-powered machines, Polestar Automotive Holding UK Plc, an EV-maker spun out of Volvo Car AB, is optimistic about producing a net-zero car by 2035.

Article content

The Gothenburg, Sweden-based carmaker squeezed its carbon footprint per vehicle by 7.3% last year, in part because its latest model, the 4 SUV, is its cleanest yet, according to its recently published sustainability report. 

Article content

Article content

Article content

“We are future-proofing our company for the inevitable climate-neutral society that will come,” said Head of Sustainability Fredrika Klarén. “We’re not doing this just to be good; we’re doing it to be smart.”

Article content

Article content

Polestar’s bid to be ever greener is an anomaly in today’s auto industry. The Trump administration has gutted EV incentives and emission regulations, while the European Commission has backed away from what had been the world’s most aggressive timeline for phasing out gas-powered cars.

Article content

While many carmakers still try to tally their corporate carbon footprint, only a handful, including Rivian Automotive Inc. and Volvo, publish such results for individual models. 

Article content

And the kind of lengthy sustainability report Polestar just compiled is increasingly rare. Tesla Inc. hasn’t drafted such a tome since the end of 2024 and many of the world’s largest companies are abandoning climate goals.

Article content

Selling electric vehicles is challenging enough, given new tariff costs and a tide of cheap Chinese EVs flooding global markets, according to Philipp Kampshoff, senior partner at McKinsey & Co.

Article content

Article content

“In the current environment, most companies would prioritize cost-effectiveness,” Kampshoff said. “Sustainability becomes an afterthought.”

Article content

But there are still green and carbon accounting regulations in place and they are looming ever larger. The European Union has a new mandate requiring companies to compile a digital scorecard of sorts for consumer products, including sustainability data and recyclability metrics. By February, automakers in Europe will have to assemble a similar scope of records for EVs and their batteries. Meanwhile, in California, a 2024 law will require large companies to track and report their direct emissions and emissions from their suppliers by August. 

Article content

For Polestar, none of these carbon audits will be new. It’s been doing them for years, in a bid to sell cars, rather than please policymakers.

Article content

In 2025, Polestar cut emissions by sourcing more recycled steel and cobalt. The company’s newest vehicle, the Polestar 4, has about 600 pounds of reused materials, 12% of its total weight, from the metal in its battery to the fabric on its seats. In many cases, the changes cut costs, as well as carbon, Klarén said.