Volvo’s latest commitment to environmental betterment is to become the first automaker to sign onto the SteelZero initiative, which aims to encourage the production of fossil-free steel.

As part of its decision, Volvo has committed to stringent steel sourcing requirements based on CO2 emissions. That means that by 2030, 50 percent of the steel it uses will be made using one of the following criteria: a ResponsibleSteel certification, low embodiment steel with defined specific emissions intensity, or steel that was made at a site where the owner has made a public commitment to long-term emissions reductions.

In addition, Volvo is committing to sourcing 100 percent of its steel from net-zero suppliers by 2050. That, the automaker says, is in line with its ambition of being climate neutral by 2040.

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“Volvo Cars joining SteelZero marks an important step-change in the global demand signal for low-emission and net-zero steel and a pivotal moment for the automotive industry,” said Jen Carson, the head of industry at Climate Group, which launched this initiative. “This sector plays a central role in driving the net-zero transition of steel.”

Indeed, the steel industry is a major source of pollution. Estimates suggest that steel production is responsible for seven percent of global greenhouse gas emissions. Volvo says that steel accounts for 33 percent of its vehicles’ carbon footprint on average.

Volvo has already produced a demonstration vehicle made entirely out of carbon-free steel through its partnership with Swedish steelmaker SSAB. Through its Hybrit project, it intends to make steel with virtually no carbon footprint in the near future.

The automaker says that, although the environment is reason enough to participate in SteelZero, it also believes that this is a canny business decision.

“A sustainable approach to steelmaking is not just good news for the environment, it is also good business because it limits our exposure to future climate risks and regulations,” said Kerstin Enochsson, chief procurement officer at Volvo Cars. “By signaling our demand for responsibly-sourced low- and zero-carbon steel, we aim to help drive an increased supply to our sector.”