Polestar doubles down on net zero as global auto majors pull back on EVs amid challenges

As many auto manufacturers around the world are scraping their electric vehicle strategy and switching focus back to the fossil fuel models, EV manufacturer Polestar, which was spun out of Volvo Car AB, is optimistic about producing a net-zero car by 2035. The Swedish carmaker squeezed its carbon footprint per vehicle by 7.3% in 2025, in part because its latest model, the 4 SUV, is its cleanest yet, claims its recently published sustainability report.

Bloomberg has quoted Fredrika Klaren, Head of Sustainability for Polestar, saying that the company is future-proofing itself for the inevitable climate-neutral society that will come. “We’re not doing this just to be good; we’re doing it to be smart," said the Polestar official.

Polestar stands apart in global auto industry

Interestingly, Polestar’s bid to be ever greener is an anomaly in the current situation in the global auto industry. The Donald 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 fossil fuel-powered cars. While many carmakers around the world are still trying to tally their corporate carbon footprint, only a handful, including Rivian and Volvo, publish such sustainability results for individual models. Bloomberg claims the kind of lengthy sustainability report Polestar has compiled is increasingly rare. Tesla has not drafted anything since the end of 2024, and many of the large automakers across the world are abandoning their climate goals, as they are switching focus to fossil fuel cars from EVs.

For the global auto majors, selling electric vehicles is increasingly becoming challenging, given new tariff costs and a tide of cheap Chinese EVs flooding the global markets. According to Philipp Kampshoff, senior partner at McKinsey & Co., in the current environment, most companies would prioritise cost-effectiveness, while sustainability becomes an afterthought.

How Polestar is doing it?

Polestar has been doing carbon footprint audits for years, in a bid to sell cars, rather than please policymakers. In 2025, Polestar cut emissions by sourcing more recycled steel and cobalt. The company’s newest vehicle, the Polestar 4, has about 272 kg of reused materials, which accounts for 12% of the SUV's 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, Klaren said.

Renewable energy moved the emissions needle as well for the company. More than one-third of power at Polestar’s suppliers now comes from fossil-free sources, and as the world’s electric grids pump a greater share of renewable energy, the carbon footprint of charging Polestar machines – and other electric vehicles – is shrinking.

The company claims to see sustainability as a brand guidepost akin to safety at Volvo or performance at Ferrari.

Polestar positioned as an alternative to Tesla

The report claims that a growing number of buyers are choosing Polestar, in part because the company has positioned itself as an alternative to Tesla. In 2025, Polestar sold 60,100 vehicles, 34% more than in 2024. It even recorded a sales boom in the fourth quarter (October-December) CY25, when EV adoption faltered in much of the world.

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