Welcome to this sustainability update with Volvo Cars. I am John Hernander, head of the Investor Relations team here at Volvo Cars, and we're broadcasting live from our headquarters here in Gothenburg. The purpose with today's session is to talk about our sustainability strategy and progress. We recently released our annual sustainability report for 2023, in which you will find a lot of exciting information on the development during last year. Besides that, we will also deep dive into certain topics during the course of the day, where you will hopefully find more information and details on the sustainability work within Volvo Cars. With that, I will leave over to CEO, Jim Rowan. Please, Jim. Yeah. Thanks, John. Good morning, everyone. I'm delighted to be here today and to address this. This is a topic which is at the very heart of what we stand for at Volvo Cars. It's not something where it's grafted onto the side of our business. This is something which is baked in, both to our strategy, but probably more importantly, it's baked into the very culture of our company. Just as a quick reminder before we get into the details, the sustainability at Volvo is integrated also in our long-term ambitions. As you can see here, we reiterated very recently our ambitions in terms of our CO2 reduction, we're well on track to achieve that. It's also baked in to many of the other things that go around the company. The investments that we make, for example, in our tech fund, very much are focused in some of the sustainability aspects of where we see the business in the long term. Let's move to that. When we look at why sustainability, the time is now and we need to act. That's clear, and it's becoming clearer, I think, with every passing week and day. We as a company, we feel we have that responsibility. Perhaps more importantly, our customers expect it. That's one of the reasons why I believe we're managing to outgrow in the premium sector. The trust that we're building with our customer base, the trust that we're building with the community, is an important part of our growth factor going forward. Those customer expectations, I expect, will increase rather than reduce over time. It also allows us to attract employees. Now we're seeing more and more that, especially younger people who have spent time at university studying these engineering aspects, they want to be able to put that to the best use. That's allowed us to attract not just those employees, but also partners that are like-minded in this quest towards building a more sustainable future. We're also going to see some growing regulatory demands, and we want to be ahead of the curve on that rather than trying to play catch up, and that's an important part of our strategy as well. Of course, then there's the business aspect. We fundamentally believe that if we act now, if we invest properly, if we put in the talent that we need to drive this, we will increase profitability. It's my belief that as we go forward, that companies who don't have a sustainable supply chain will face higher regulatory demands, but they will also face fees and tariffs by not having baked that into their supply chain. That's another reason why we feel we need to act now. That gives us the long-term financial market value that we think we owe to our shareholders and stakeholders alike. That's basically the framework, the six-point framework, of why we think sustainability should be baked into the very heart of Volvo Cars, not just in the short but also in the longer term. If we look at where we are right now, the end of diesel will be this year. That marks another milestone in the mindset and the headset and the communications towards internally, but also perhaps more importantly, externally and towards those customers that expect us to behave in a certain way towards the environment. Then by 2030, that fully electric company. Let me talk about the transition. This will not happen overnight. From an investment point of view, I think that's a really important point. What we see around the world, I'm privileged in the role that I play within the company to actually get to see almost every single market that we operate within, certainly every region that we operate within, I get to see that on a regular basis, It is changing. The change to full electrification will not be linear. It has started off linear, but in my opinion, it will go into a double S curve, and that double S curve will be caused because different parts of the world will move at different speeds. We see that already. I just came back from a few days in the U.S.A We see the West Coast of the U.S.A electrifying very quickly, but we see the interior of the U.S.A taking a bit longer. Partly that's driven by customer demand, partly that's driven by infrastructure, partly that's driven by the technology transformation and access to energy. All of that will take some time. From a business point of view, we're really well-positioned. We have a great range of plug-in electric hybrids, and quite often, that is the main bridge to full electrification. Customers who come into the brand through electric hybrids learn about the technology. They get comfortable with the technology. They have the charging infrastructure at home. Very often, they then transition in their next vehicle to a full electric car. We think that the plug-in electric hybrid technology that we have as a company is a great bridge that will take us forward, especially in some of those areas which will take a little bit more time to transition. Again, even in Europe, we see Northern Europe transitioning much faster to full electric than Southern Europe. This is our premium growth balanced portfolio, as we like to call it. Already, we can see that's reasonably balanced in terms of the plug-in electric hybrids and our full electrification. Of course, the full electrification side of this chart will start to develop quite progressively in the years ahead. On track. Basically, there's a derivative. The more electric cars that we can get as part of our portfolio, then of course, the quicker that we chase down those targets on CO2 emissions. Right now, I'm glad to say that we're on track for the first of those commitments, which is 50% full electric cars, which in itself is a great bridge then to the CO2 reduction of 40% by 2025 when you take that to a baseline of 2018. That's really the main message here, that we remain on track. Despite some of the sentiment that you may hear in the marketplace, we, Volvo Cars, remain on track. Climate action in itself is not enough. We also need to make sure that we collaborate across a much wider spectrum. That brings into play, yes, some of the climate action areas that we need to collaborate deeper on, but we also need to start looking at the whole circular economy and what does that look like. As an engineer, when I look at electrification versus internal combustion engine, there is no question in my mind that electrical propulsion is a far superior technology. The efficiency that you get from an electric propulsion system versus an internal combustion system is profound. A really good internal combustion system operates at roughly 35% efficiency from the energy you put in to the movement that you get forward. In our latest e-propulsion systems, that's north of 90%. You don't need to be a data analyst to figure out that that's a profound difference between those two technologies. The simple reason is that in internal combustion, you lose a lot of energy to noise, to vibration, and to heat. You don't have those same problems when you have electrical propulsion. When I bring that back to circularity, it's also an important point. When you burn a hydrocarbon, it's gone. It never comes back. When you develop an electrical propulsion system, even at the end of the life of that product, of those batteries, you can bring those batteries back in and you can recycle those batteries and get a second use from them by putting the raw materials back in to new battery production. That circularity is going to become an increasingly more important part of the whole EV ecosystem as we go forward. Of course, the final part to our strategy is this responsible business where we aim to protect, of course, not just the planet, but we also aim to protect our shareholders in terms of the returns. We feel this is a balanced portfolio. We think we are being responsible in terms of the bridge towards that full electrification and how that will play out in different parts of the world. We think we are being responsible in terms of how we are making those different investments. We think we are being responsible in terms of how we are making sure that as we lay the foundations for the future, we also understand how to guide the business through this profound change and through this transformation. Volvo Cars aim to reach net zero greenhouse gas emissions by 2040. This expands upon our previous ambition of being climate neutral by 2040. It also clarifies that our priority remains to reduce emissions before turning to carbon removals. We encourage our suppliers to do the same. By 2025, we aim to reduce CO2 emissions by 40% per average car compared to 2018. By 2030, we have upgraded the strategy with the ambition to reduce CO2 emissions by 75% per average car. This is very high ambition. By 2040, we aim to be net zero, meaning a reduction of around 90%-95% per car. This is likely to be combined with the carbon removals to address any unavoidable emissions. These ambitions for 2025 and 2030 are acted upon as the three key levers. Transform to pure electrification, minimize emissions from materials, and minimize operational emissions. Firstly, we aim to be a fully electric car company by 2030. Electrification is key for our climate ambitions, and with a global BEV mix of 16% in 2023, we are doing good progress. Secondly, we focus on switching to low and near zero-emission materials. The key materials, steel, aluminum, and the battery, account for around 75% of the CO2 emissions from materials in a battery electric vehicle. Our focus also includes the materials such as plastics, electronics, et cetera. Thirdly, we also shift to climate neutral energy in our own operation and at retailers, and we work with our logistics partners to reduce their operational emissions. In 2023, we did good progress towards our set climate ambitions. The share of fully electric and plug-in hybrid electric vehicle sales increased from 33% in 2022 to 38% in 2023, primarily due to increasing all-electric sales, representing 16%. The CO2 emissions from materials are although increasing by 22% per average vehicle in comparison with our 2018 baseline. This increase is primarily caused by a few different reasons. The added batteries in fully electric vehicles compared with those powered by internal combustion engines. The actions taken to reduce emissions from newly launched cars, such as EX30, are still only showing a limited impact on the average emissions from cars produced due to their limited share of total volumes in 2023. We're also seeking to reduce material emissions from all cars produced by directing our suppliers to use low-emission aluminum, as well as reducing the carbon footprint of the batteries through shifting to climate-neutral energy sources. We do expect that these measures will have made a positive impact by 2025. The operational emissions per average vehicle have so far decreased by 19% compared to 2018. To sum up, in 2023, CO2 emissions per average vehicle have decreased by 20% in comparison with our 2018 baseline. With the effect from increased electrification and from the actions taken to reduce emissions from materials, we expect that the carbon footprint per average car is to continue to reduce. Our intent is to meet the ambition of 40% CO2 reduction per average car set for 2025. Already in 2023, we achieved one of our 2030 SBTi targets, reducing emissions from Scope one and two by 65% compared to our 60% target. Progress towards the remaining SBTi Scope three target to reduce emissions from use of sold products by 52% per vehicle kilometer by 2030 compared to a 2019 baseline was at 22%. To ensure we stay on track to meet our CO2 emissions, we have during 2023 had a big focus on implementing a CO2 steering model, integrating CO2 into key decisions of the car development process. CO2 steering is set up to be a more precise operating model to help us steer towards our existing climate ambitions, but on an individual car level. A key part is that it is directly aligned with an already established performance steering model for cost. This allows us to integrate CO2 into decision-making, taking well-informed decisions of both cost and CO2. To reach our CO2 ambitions for 2030, we know where we need to be. All new cars are therefore to deliver their fair share of the corporate emission and are receiving a CO2 target for them to meet at their start of production. At the same time, we also break down the CO2 target to actionable sub-targets on all components of the car. The important thing is not that we at this early stage are exactly right, but since some key components are designed and engineered very early in the car development process, these components need to receive a sub-target at this early stage. Combined with a direct feedback loop where the engineer can assess the climate impact of their decisions as they are taken, the breakdown of the CO2 target also allows for a car project to track progress in a more detailed way. Because if off-target, it also allows for the engineer or the project to take mitigating actions in time. A majority of cars' emissions are coming from its ingoing components. These emissions are happening at our suppliers or further away in our supply chain. Putting tough requirements on our suppliers is one key step, but being able to critically review the life cycle assessments, the EPDs or certificates that a supplier is sharing is important for us to verify a supplier's claim and to spur a dialogue on how to bring down emissions before the contract is signed. At the sourcing decision, the buyer can also collect and store this documentation from the supplier for future traceability and auditability. Finally, the finance controlling function is supporting with CO2 controlling, ensuring we know the status and the roadmaps at all steps along this process. With this project, we're aligning our CO2 steering model with our cost model and strengthening the capabilities of all those individuals in the company who have the power to influence climate emissions of our products. To support, a major digital project is ongoing to create a virtual representation of the sustainability performance of our future cars. A master source of carbon emissions is being integrated across relevant systems to ensure one source of truth. Relevant documentation is collected and stored to substantiate the CO2 levels of cars in any future communication. This way of working, following the key steps of our existing car development process from the first idea of its existence to its final production, allows us to steer towards our CO2 targets with precision. It allows us to identify deviations early and to take well-informed decisions at the right time. Because in the end, we argue that an ambitious climate agenda is nothing without strong execution and a well-functioning operating model. With that, I want to hand over to Owen to talk about circular economy. Good morning. On circular economy, we aim towards becoming a circular business by 2040. We have three principles for this. The first principle is to minimize primary resource use by avoiding primary materials and freshwater use and increasing overall efficiency. Secondly, we believe in eliminating waste and pollution by preventing it, redirecting outputs to high-value circular loops, and tackling biodiversity impact. Thirdly, the third principle is to grow circular business by generating more revenue to support the decoupling of revenue and primary resource use. Looking at our 2025 ambitions, they have really helped to drive change across the company. Focusing on recycled material to achieve our 2025 target of 25% recycled content. Also, on waste and water efficiency in manufacturing, and recognizing the potential from circular business from cost savings and new revenue generation. It's all triggered action across the company. Now we need to look to 2030 to set new challenging ambitions. The first new ambition we set was to have a 30% recycled content level across our fleet. This is a very challenging target from where we are today, which is around 10%. We also set an ambition to increase the recycled content in new vehicles coming out in 2030 to 35%. That's an increase of 10% compared to our 2025 ambition. That might not sound like a lot, but it requires our supply chain to really change the way it delivers materials and increase the value of recycled materials through new processes. It also means we need to adjust our technical specifications on materials and to tolerate some variance. This is an advanced level of ambition, but it is hard to know exactly how it fits in the industry, because direct comparison between our competitors isn't really possible. We've also expanded our water ambition to 50% reduction per car in own operations, and this is including manufacturing, offices, and other facilities. This will end up putting us around 1.5 cubic meters- 1.8 cubic meters per car, depending on the volumes. This is an industry-leading target. The average today is somewhere about 3.6 cubic meters, and today we stand about 2.7 cubic meters. We're tracking best practice across our facilities to share with other facilities to ensure that all sites take a step forward. We've also set an ambition on waste that is generated. We've been doing some really good work to reduce the overall amount of waste in our own operations, but we recognize we need to focus on how that waste is being dealt with. We set the industry-leading target of more than 99% of the waste generated being reused or recycled. The majority of our waste is metal, and we're looking to direct more of that metal to companies that use it as a high-quality input. Therefore, it can be recategorized as a byproduct. A final point about growing circular business. We are still working on a 2030 ambition, which will have more of a focus on the bottom line. We see room to expand our circular parts offer, increase the proportion of waste going to those high-value loops I mentioned, and designing out waste before it occurs, such as in the stamping process. Regarding biodiversity, we have set an ambition for the longer term for Volvo Cars to strive to be net positive across our value chain and contribute to nature-positive future. We'll go into this in a little more detail shortly. Now let's have a look at what's happened in 2023. The EX30 was released, and this has had the highest recycled content to date with 17%. We achieved this in collaboration with Geely by setting really challenging technical requirements and identifying some of the suppliers with them. We also brought in some novel technologies to production, such as a zero-waste 3D-knitted interior material that's using recycled polyester. This collaboration will be beneficial for increasing recycled content as we move forward with new vehicles. We've also made positive steps on dealing with our waste streams. Our new ambition means that we need to play an even more active role in sorting and redirection to suppliers who use it as a feedstock, and we're at 92% today. This way of thinking is currently focused predominantly on manufacturing, but there are opportunities to expand this into other parts of the organization, which will help profitability. While we recognize that we only use a fraction of the water consumed across our value chain in our own operations, it is really important that we get our house in order. We're almost halfway to the 2025 ambition of a 50% reduction. A couple of examples where we're applying circular thinking is, we've reduced 0.4 cubic meters of water per car through reuse and recovery methods through cooling and paint shops in our manufacturing plants in China. Finally, one case study that helps give an example of how we're going to need to continue working on recycled material is in the case of recycled copper in cabling. We were concerned that using recycled content would degrade quality. Actually, through testing, the results showed that there was no loss of conductivity. Which means that we can increase the use of recycled materials, and that will support CO2 and biodiversity. Now, let's look at biodiversity in a little bit more detail. We've worked cross-functionally to set a long-term ambition to strive to be net positive across the value chain and contribute to a nature-positive future. This graphic will help you show how we intend to do this. Firstly, it's really important to say that we believe in taking a complete value chain approach to our impact on biodiversity, just like we do for climate. We measure biodiversity impact by using an index called Species Year. Basically, it summarizes our localized biodiversity impact throughout the value chain, from pollution, land use, water use, and greenhouse gases. This index summarizes the net impact on biodiversity. To understand how our actions affect biodiversity, we conducted an impact assessment using production and sales data from 2021 to estimate our annual biodiversity footprint. Unsurprisingly, we found that about 80% of our footprint came from the supply chain. The main drivers we have identified are from the production and processing of primary materials, freshwater use, and the battery and electronics value chains. As we look to the future in 2040, we see an increase in the negative footprint through increasing volumes and the BEVs switch. We realize we need to tackle it. What we've identified is a technical roadmap to mitigate our impact. The three main levers that we can point to at the moment are reductions in the amount of primary materials used, and that can either be done through increasing recycled content or using less material per car. Secondly, achieving our climate targets. There's a relationship between the two. Thirdly, working with our supply chain to ensure the processes are in place to manage mining practices, pollution, and water consumption. We know that we will also need to take positive steps, where we need to look at restoration, preservation, and regenerative activities. We're currently evaluating the most effective way to engage in this. There's a growing push to act in this space, and we're evaluating how to do that strategically. We're also continually tracking the global developments on biodiversity and pricing and credits. To summarize, here you can see what we mean by net positive and nature positive contribution. Net positive means to have a positive footprint across our value chain by tackling our impact and taking positive steps. Nature positive commitments means that the negative impact that we have is less than the baseline year, and we will reduce our negative footprint year by year. Thank you very much. Thank you, Jonas, and thank you, Owen. Now it's time to move into the first Q&A section here. At this point, we would appreciate if you ask questions related to the Climate Action Pillar. We will have plenty of time for the other parts and the summing up towards the end. To repeat, to ask a question, you can either send in it using the chat window, or you can scan the QR code and get the details to call in. If you call in, press star one one to ask a question. If we start here with one related to the climate. You said you have reached your SBTi targets for scope one and two already. Will you change your ambitions or do you want to have some flexibility there? Jonas? Thank you, John. Let me answer that. Firstly, there was a new updated guidance coming from SBTi yesterday. Therefore, we need to evaluate what that new guidance actually says before it's easy to answer, well, how we are to act now. Of course, our strategy still stays. We are to reduce emissions across everything we do, and we need to continue even though we might have delivered on a sub-target. If that means updating the SBTi target, it's too early to answer that right now. Okay. Thank you. The next question comes here on, do you see a pricing premium for more sustainable materials? Owen or Jonas? I can start, and you can fill in perhaps. Firstly, I think it's important to recognize that, yes, we are investing right now to reduce emissions. There are some price premiums in some materials that we are acting on. We are also trying to do that in a cost-efficient way. For example, we see a rather big difference in reducing emissions from some materials versus others, and we try to ensure that we take the right steps at the right time to do it in a cost-efficient manner. It's also important to recognize that our industry is dependent on a few materials where the emissions cannot be reduced unless we take other steps as well. That is exactly why we focus on the near zero-emission steel and the near zero-emission aluminum. Last year, right before COP 28, we announced we are joining the First Movers Coalition, part of World Economic Forum, where we publicly talk about our future demand of the near zero-emission aluminum. Because in the end of the day, we are dependent on a future supply, and unless that future supply is in place, of course, there will be a price premium to that. By talking about our demand very early, we hope to send a strong signal to the market so the supply will be there in time, and hopefully, that can bring down the price premium. Yeah, just on recycled content. We recognize if we look at the cost base for recycled content, we can see that the cost for recycled materials should be lower than primary material, especially low CO2 primary material. We are yet to see that that is coming to fruition because there are technology changes for recycling and sorting and separation technologies to provide the recycled material back to the grades that we sort of have much more visibility about today, that Jonas is pointing at. We also recognize that there is also inherent recycled content in many of the sort of casting grades and engineering grades of materials like steel and aluminum that we have today. We expect that the long-term recycled material should be more cost-effective. Okay. Anders? Yeah. Let me just add to this. Yes, premium or green materials will be, or is sometimes more expensive today. What is also important to remember here is that conventional materials also is likely to increase in price. The example here, which is most evident, is the price of steel and aluminum in the EU. We will see a phase out of free allocated emission rights for steel and aluminum in Europe, which actually will make also the brown steel and aluminum, if you call it that, also go up in price. Where that eventually will end up is very difficult to answer today. Thank you very much. The next question, also with [audio distortion]. Your absolute CO2 emissions seems to be going up. How does that align with wanting to minimize your impact on the climate? What's driving the absolute emissions right now? We see a volume increase in cars sold between 2022 and 2023, and that is affecting the absolute emissions. As I mentioned earlier, the emissions from the use phase and the emissions from the materials, they are key in terms of reducing the absolute emissions. That is why we have the strategy we have with the ambitions for 2025 and 2030 to reduce the emissions per car with a very ambitious level. We believe that this will drive down absolute emissions as well. Of course, the volume impact will affect this, so it's hard to say exactly when that will happen. With these per-car targets, we intend to drive down the absolute emissions as well. Okay. A question maybe for Johan that comes in. We heard about Jim and his speech about our transformation and driving electrification in the portfolio. Have you considered reviewing the pace of electrification transition given the market environment and other OEMs' lowered electrification pace? Yeah. Thank you, John. As Jim alluded to, the exact pace of electrification will be somewhat different in different parts of the world. We also have a very balanced portfolio. We are continuously increasing our number of electric cars or EVs, and will continuously do so with even more models coming out continuously. On the other hand, we also still have a very attractive lineup of PHEVs and also MHEVs in order to balance that pace of growth in different parts of the world. I'm very convinced that that will be, as also I think Jim alluded to, more of an S-shaped curve. Which means that when we come into 2030, we are definitely still very confident that the electric market will cater for us being fully electric when we approach the end of the decade or after the end of the decade. The road to that phase will be slightly different in different parts of the world. As such, we have a very balanced portfolio in order to have that flexibility up until 2030. Okay. Thank you. Volvo Cars aim to protect and improve people's lives in our value chain and wider society. We focus on ensuring employee wellbeing, safeguarding human rights, and contribute to sustainable society. Within ensuring employee wellbeing, our focus is to secure equality, protect our people, and educate and encourage sustainable behavior. Volvo Cars aim to continuously increase women in senior leadership, we aim to ensure a year-over-year improvement until 2025. By 2030, we aim to have 34% women in senior leadership positions. We are committed to an inclusive and diverse culture and workplace, regardless of individual attributes such as gender, ethnicity, or age. We are continuously working on ensuring a culture focusing on inclusion and belonging, we aim to score plus one compared to global benchmark in 2025 and plus three by 2030. Volvo Cars focus on the safety of our employees, and we continue to set a high ambition for injury rate. Our current LTCR, lost time case rate, the unit we use for measuring this, is already industry-leading, and we aim to further reduce it to 0.04 by 2025 and 0.02 by 2030. Gender pay equity is based on the principle of equal pay for equal work. We aim for a fair and equitable pay for our employees and have an ambition to achieve gender pay equity by 2027. Our next pillar is about safeguarding human rights to ensure responsible business conduct throughout the full value chain. Besides our own commitment to safeguarding human rights, there is an increasing focus from investors, legislators, and NGOs, to name a few. We are working hard to help safeguard human rights through risk-based due diligence processes to trace, identify, assess, and address human rights risks. Our work includes the full value chain, but our main risks are found in the supply chain, and therefore, I will describe that work in more detail shortly. The tone from the top is extremely important to drive the right behavior, and we are currently conducting responsible business trainings for leaders, and we will increase that focus moving forward. We work towards a year-over-year improvement in number of assessed sites in our value chain. We have internal targets on number of assessments upstream, in our own operation, and downstream. For example, we do people policy assessments in our own workforce, we do health and safety assessments downstream, and I will shortly give examples of our work upstream. Volvo Cars follows internationally recognized human rights standards and guidelines, and we welcome the recent approval of CSDDD. Our final pillar in the responsible business strategy is to contribute to sustainable society, to collaborate with stakeholders, invest sustainably, and support and protect the most vulnerable in society. Together with like-minded partners, we look forward to unveiling new social and environmental initiatives in the coming year. These will be directed towards helping protect people and the planet in our value chain, as well as in the wider society. Our CFO, Johan Ekdahl, will soon give more information about our focus on EU Taxonomy alignment, as well as our ambition linked to green debt and sustainability-linked financing later in the session. Now, let's look at what we achieved in 2023 linked to these ambitions. We are currently at 30.1% senior female leaders. The global manufacturing sector average is 25%. We are working towards increasing women in senior leadership and key roles through ensuring ownership and accountability at business level connected to a remuneration program. We are initiating mentoring programs, we work with advancement and succession planning, and we are implementing a training about inclusive hiring. In 2023, we further decreased the injury rate of our employees to 0.06. Also in 2023, a milestone was reached that we set in 2013 to identify and eradicate 500,000 safety risks. Each risk reported is an opportunity to prevent accidents and create a safer workplace. Women are currently paid 3.4% less than male peers. In 2023, we conducted a global pay equity analysis of our four most significant sites, Sweden, U.S., China, and Belgium. We are working on implementing a global job framework. This framework will provide more context and better data linked to different salary grades. The analysis we have completed, as well as the improvements we plan to do, are important milestones towards achieving gender pay equity. Our inclusion index is currently at 75, meaning minus one compared to global benchmark. In 2023, we developed a data-driven methodology based on our employee survey to track and benchmark employees' perception of inclusion and feeling of belonging. Examples of actions that we are taking to improve this score are trainings in inclusion for leadership teams, trainings in unconscious bias for employees, and the implementation of the inclusive hiring training. Now, let's look at our supply chain due diligence. As mentioned earlier, when it comes to our supply chain and our supply chain partners, we perform a risk-based due diligence process to trace, identify, assess, and address human rights risks. Our supply chains are complex, diverse, and very long. For that reason, we face challenges when it comes to achieving the right type of transparency, especially beyond tier one, and to understand the potential impacts on human rights. Our risk-based approach helps us tackle these challenges. This picture illustrates our supply chain, our tier one suppliers, our tier N suppliers, all the way back to the raw material suppliers. All directly contracted suppliers, tier one, must pass through a basic due diligence program to make a first broad assessment of their compliance with our code of conduct for business partners. One example here is the SAQ, the Sustainability Self-Assessment Questionnaire, a tool we share and conduct in cooperation with our peers in the automotive industry in the collaboration Drive Sustainability. For suppliers that we categorize as higher risk, a basic due diligence is not enough, and we need to go wider and deeper and perform an enhanced due diligence. Risk drivers are, for example, country of operation, connection to a specific raw material, level of expenditure, or the product type. An example of an enhanced due diligence activity are on-site audits performed through third-party, independent, accredited auditors. In 2023, we performed 88 audits spread out over various commodities and from tier one suppliers all the way down to the mine site for battery supply chain. Our human rights due diligence efforts in the supply chain really is a marathon, and we continue to learn, develop, and improve every day. We see a large interest in this work. We will continue our focus, and we welcome a dialogue on the topic. With that, I hand over to Johan to talk about sustainable finance. Thank you, Ida, and good morning. Of course, finance will play a very important role in the sustainability work that we do. Examples of that being, of course, our green financing framework and our continuous offers to the financing investment community on things like green bonds, where we have issued SEK 1.5 billion bond in 2023, and also ensured EUR 420 million of financing facilities with the European Investment Bank in the end of 2023 and beginning of 2024. We have also ensured we have clear ambitions for both 2025 and 2030 on both the EU taxonomy alignment, as well as that we should have 100% of our debt in 2025 being in accordance with our green financing framework. We also have a very deepened collaboration with our suppliers, where we have introduced a green-linked sustainability supply chain financing program that will really be able to drive the work together with our suppliers in order to ensure that we have a process in place working on things like energy usage, clean energy, and also things like different other targets and sustainability ratings together with our suppliers to continue to work in order to be able to reach our longer term sustainability ambitions also in that phase of our ecosystem. All in all, I think finance will actually be a very important part of driving this, and in addition to the fact that we're actually reaching our sustainability ambitions from a financing perspective, this also will lead to that we have a lower cost of capital over time, because that is really an increasing requirement from the capital markets in order to ensure that we have clear sustainability targets also from a financing perspective. On the green financing framework, that was originally introduced in 2020, and it has now been updated in May 2023 in order to ensure that it's fully aligned with our longer term sustainability ambitions and all new regulations coming into play, et cetera, such as the EU Taxonomy and others. We have issued a number of bonds linked to this framework, but also we have entered a number of bilateral and multilateral credit facilities such as the European Investment Bank facilities, as I mentioned, in the end of 2023 and beginning of 2024. The framework has also been reviewed by an external party, the CICERO Shades of Green, which is now a part of S&P, we have received the highest possible rating on this framework. This is really an important part also to ensure that we live up to our ambitions from a sustainability perspective. Currently, we have 52.3% of our total debt financing outstanding in accordance with the green financing framework, the updated ambition is then to have 100% as of 2025, and that is more due to the fact that we have maturities of the current debt coming up. Virtually all new debt should be issued in accordance with our green financing framework. Again, that is also really something that is expected from us, from the capital markets community, and it's also actually a benefit from a cost of capital perspective, and I expect it will be even more so going forward into the future. If we look at the EU Taxonomy, as I said, we have updated our ambitions for the alignment on CapEx to be 50% aligned by 2025 and 70% aligned by 2030. That is very much aligned with our own commitments to do no significant harm in other environmental objectives. That includes things like climate change, like biodiversity and circular business, and also to ensure the so-called minimum safeguards, which then includes the areas such as we have talked about here, supply chain due diligence, tax, corporate governance, and also things like a number of other areas, of course, that we ensure that we will be fully aligned with in the investments we do to the largest extent possible. Since this is very much aligned with our own ambitions, we will have an increasing amount of investments aligned with the EU Taxonomy going forward. In 2023, the CapEx alignment is 12%, OpEx alignment is 7%. We have increased from 2022, but it's also important to bear in mind that this is a new regulation. There is a lot of interpretation. We have also chosen to take, let's call it, a cautious approach when it comes to alignment assessment, and rather have a very structured work in order to ensure that we reach our targets of 50% alignment by 2025 and 70% by 2030 when it comes to CapEx alignment. When it comes to other alignment in OpEx and revenue, that will follow, of course, the CapEx alignment as it increases, and revenue very much so when we start delivering and selling the cars then based on the investments that we're currently doing. We have a number of operational action plans to address all these different areas, including use of substances in our manufacturing and supply chain in order to ensure that we reach our alignment on CapEx going forward. There are also, of course, in other areas within the EU Taxonomy, in addition to the manufacturing of cars, that we also, of course, structurally are working towards going forward. At Volvo Cars, sustainability governance firstly means having an effective way of organizing so that these matters are timely integrated into decision-making. These decisions can be linked to a broad range of areas, new products, processes, services, or new factories. It also means to monitor that our strategies and ambitions are executed as intended, and that we have an engaging and constructive dialogue with stakeholders across the main markets. Moreover, it includes ensuring that our employees are properly trained in the ever-changing area of sustainability. It also means assessing related risks to our business and supporting our external rating. Let me start with how we are organized. The Head of Global Sustainability reports to the CEO and will, as of April 1st, also be a member of the Global Management Team. This enables full oversight of all existing and potential sustainability issues across the company. The central team is about 30 employees focusing on climate action, circular economy, governance, and responsible business, as well as a team for data and analytics. All major business units have appointed a person or a team responsible for sustainability. They operate in close collaboration with the head of global sustainability. All in all, this makes the setup very strong and enable us to act cross-functionally and integrate the matters into main processes and decision-making. How are then decisions made really on sustainability? At the top, it starts with the board. It meets yearly to discuss and approve our strategy and secures that sustainability is included in all major investment decisions. The board also reviews the annual and Sustainability Report and signs off the internal remuneration programs, which includes sustainability parameters. The board also ensures that related risks are well managed within the overall risk management process. Going forward, the board will be further involved, as in line with CSRD, the European Union Corporate Sustainability Reporting Directive. The global management team meets quarterly on sustainability matters to review progress against the decided strategy. As sustainability nowadays is integrated as a part of almost every meeting, it is therefore part of every meeting in GMT. The GMT also has a global compliance committee dealing with human rights and other compliance matters. For preparing GMT decisions, a few other meeting forums are involved. The sustainability management team focuses on day-to-day cross-functional matters. The Green Finance Committee prepares the green financing report, reviews the EU Taxonomy, and the corporate sustainability report. The human rights steering team constantly monitors human rights across the value chain and prepares the company for the CSDDD, the EU Corporate Sustainability Due Diligence Directive. These fora focus on cross-functional matters. However, several matters are brought for decision through the normal line organization. As an example, in car development, sustainability requirements are integrated from early design concepts to start of production and throughout its life cycle. Our ambition is to be a pure electric car company by 2030, requirements like energy efficiency are top of the agenda. To support the ambition to reduce CO2 by 75% between 2018 and 2030, we set targets for the overall CO2 performance, as well as for recycled content and low and near-zero aluminum and steel. Another example is when we invest in manufacturing sites or other type of facilities. Obviously, permits and legal compliance are mandatory, we also require gold level in the international LEED certification for facilities of a certain size. As we have bold future ambitions in climate, circular economy, and biodiversity, more and more requirements are added to these type of investments. We're also upgrading our stakeholder engagement and advocacy. We meet various stakeholders across the world to discuss, listen, and learn. We perform extensive interviews with external experts to better understand future challenges, giving us valuable insights for the future. When it comes to advocacy, during 2023, we saw our CEO joining the World Economic Forum's Alliance of CEO Climate Leaders. We also joined the First Movers Coalition, a coalition creating early market demand for emerging climate technologies. Our CEO was also active in publicly defending the EU 2035 ban of internal combustion engines. We were active at both Climate Week NYC and at COP28, arguing for ambitious climate and biodiversity actions. On this chart, you see our ESG ratings that we prioritize. They are important complements for stakeholders when reviewing our performance. I must say, we are very proud of the ratings for 2023. As for Standard & Poor's, globally, we remain among the top three automotive companies of the 73 companies that was rated. We are now also included in the Dow Jones Sustainability Index for Europe. As for CDP, Volvo Cars is again rated A in climate, a rating only achieved by 1.7% of the 21,000 companies rated. We're also rated by Sustainalytics, ISS, and MSCI, and those ratings you find in our annual and sustainability report. Finally, a few words on our risk management. Of course, sustainability is integrated in the continuous process of evaluating business risks. We're following the recommendations of TCFD, and we intend to sign, with TNFD, the Taskforce on Nature-related Financial Disclosures, in the near future. As for global warming, we have assessed the transitional and physical risks. Clearly, some of the risks could be considerable, and that's why climate action is of highest priority in our sustainability strategy. Thank you. With that, let me hand over to John. Thank you very much, Anders. Thank you, Ida and Johan as well for the presentations. That concludes the presentation part of this. We now move to a question and answer. Again, if you want to, you can either send in your question using the chat window or scan the QR code and call in and then press star one one to ask a question. All right. Another written question here. Moving from 30%- 34% women in senior leadership from 2023 to 2030 isn't a big difference. Can't you be more ambitious? Ida? We are committed to an inclusive workplace, and long term, we still have a 50/50 ambition when it comes to senior female leaders. We are operating in an industry that has a heritage of a large share of male employees. In the manufacturing sector, the share of female leaders globally are 25%. We think that 35% is an ambitious way forward for us. Thank you. The next question is, what is going to be the impact of electrification on your employees and along your supply chain? How do you contemplate the just transition? Yeah. I can start. Okay. I guess it's a transition over time, of course. Already, it will be a combination, I think, of new competencies needed in the engineering community and in other parts of the business, but also, of course, in continuous development and upskilling of current employees. That will, of course, be something that we do over time. I guess there will be no major big effects like at one point in time. It's a combination of upskilling and taking new competencies as well. Okay. Thank you, Johan. Regarding responsible business, how can you be sure about you do not have any human rights violations in the value chain? Anders? Yeah. You can never be sure. The only thing that we can surely say here is that we do our utmost to prevent and mitigate such things happening in our value chain. It is indeed a challenge. We have a very wide and very deep supply chain, and we are constantly upgrading our processes, our resources, to find and identify such occurrences. Right now, we're also seeing the CSDDD, the Corporate Sustainability Due Diligence Directive, coming into the EU, putting further pressure on all companies. We've been working with it for a few years, and I think we are of course well-prepared internally, but again, you cannot, on matters like this, give any guarantees. The question related to that maybe is that what have you found in your audits of the supply chain, and has that led to any actions? Yes. The main findings are excessive working hours and lack of health and safety procedures. What's important here is to establish and close corrective action plans, and that is what we are working hard on because that is also really how we can make a difference. Thank you, Ida. We have what seems to be right now the last question. How are you prepared for CSRD reporting? External reporting is nothing new to Volvo Cars. We've been doing that for 25 years, transparently in sustainability reporting. We've recently now worked also with ratings. Ratings with CDP and Standard & Poor's, which really is a very good preparation for CSRD. We started to focus on this about two years ago when we had a small team focusing on it. We quickly realized that data and data management is a core feature or core process that we must master in order to meet the CSRD. We also now have a project internally led by finance to secure that we learn from financial processes, internal control, and the audits related to finance to come across with these really tough regulations. Overall, I think we're well-prepared to meet this. Thank you, Anders. That concludes the program for today. There are no more questions at this point. Thank you all the speakers for today. Hopefully, this session has increased the understanding a little bit for you regarding the sustainability work here at Volvo Cars. It's really close to our heart, sustainability, and it's an integrated part of our operations and business and is one of the cornerstones for our business success. Thank you very much for participating, taking the time to be here today. As always, we at Investor Relations are welcoming any feedback, questions, engagement, et cetera. If there's anything you want to follow up on, just reach out to us. With that, thank you very much and have a good day and look forward to meeting you in the future. Thank you