Volvo 2015 Annual Report Download - page 47

In June 2015, the Volvo Group took a big step in the jour-
ney towards delivering sustainable transport solutions –
as an entirely new electric bus route, operated by Volvo
branded full-electric buses and electric hybrids, opened
in Gothenburg. The aim of the route is to develop and test
new solutions for sustainable public transport. It is the
result of ElectriCity, a collaboration between the Volvo Group and
several partners from industry, research and society.
“The bus line is one of the most modern in the world and the
interest is incredibly high, not least due to the buses being com-
pletely silent and emission-free, and being run on electricity from
wind and hydro power,” says Niklas Gustafsson, Chief Sustainabil-
ity Officer, Volvo Group. “But the innovation aspect primarily per-
tains to the complete transportation system. A system that we can
now show meets society’s socio-economic and environmental
challenges.”
A more complete picture of the savings of electric buses
Standard investment appraisals often do not take into account all
of the costs and benefits that impact society and the environment.
Therefore, to quantify these aspects, the Volvo Group and the
audit and advisory firm KPMG have calculated the monetary value
of an electric bus line.
“Electric buses are an excellent example of an innovation that
can create substantial societal value,” says Daniel Dellham, KPMG.
“By supplementing standard financial analysis with socio-economic
and environmental factors, one arrives at a more complete picture
of the investment’s impact on companies and society.”
The analysis was based on a city with about half a million
inhabitants and 400 buses. If the buses were run on electricity
instead of diesel, the total annualized societal saving would be up
to SEK 100 M. Among other areas, the savings stem from reduced
noise and air pollution, which is estimated to lead to decreased
health care costs of up to SEK 24 M. The annual reduction in
carbon dioxide emissions would total 33,000 tons, corresponding
to emissions from about 3,000 Swedish households.
Surprise concerts on the silent electric buses
ElectriCity recently launched the Silent Bus Sessions campaign
to bring further publicity to the electric public transport project by
showing another side of sustainable transport; the quietness of
electric buses. Unsuspecting passengers on the new bus route in
Gothenburg were treated to surprise performances by some of
Sweden’s hottest artists.
“Noise is one of the biggest health problems in big cities
around the world. Volvo’s electric buses are silent and emissions-
free, and we are convinced that electric public transport in cities
is the way forward to achieve sustainable transport,” says Håkan
Agnevall, President Volvo Buses.
A GLOBAL GROUP BUSINESS MODEL ELECTRIC BUSES
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