Polestar has reported a 31% reduction in greenhouse gas (GHG) emissions per vehicle sold since 2020, even as it expands globally and grows sales, positioning itself as one of the few automotive manufacturers claiming to decouple growth from climate impact.
The Swedish electric vehicle (EV) brand’s latest Sustainability Report, published this week, outlines progress made over a five-year period during which the company has increased annual retail volumes to more than 60,000 cars, entered 28 markets and expanded its manufacturing footprint across three countries.
The figures arrive at a time when parts of the automotive industry are recalibrating electrification strategies amid shifting policy signals and continued investment in internal combustion technologies. Polestar, however, is leaning further into its EV-only approach.
“If you are not reducing emissions while growing, you are choosing not to,” said chief executive Michael Lohscheller, framing the company’s progress as both a commercial and moral imperative.
Emissions trajectory and EV lifecycle impact
According to the report, Polestar achieved a 30.9% reduction in emissions intensity per vehicle compared with its 2020 baseline, bringing average lifecycle emissions down to 31.7 tonnes of CO₂ equivalent per car in 2025.
This places the company slightly ahead of its internal decarbonisation curve, which targets a halving of emissions per vehicle by 2030 and full climate neutrality across its value chain by 2040.
The reduction reflects multiple factors, including increased use of renewable energy in battery production and manufacturing, improvements in materials sourcing, and a shift in product mix. The growing proportion of Polestar 4 models — currently the brand’s lowest-carbon vehicle — has been particularly influential.
Lifecycle emissions remain a critical challenge for EV manufacturers. As outlined in the report, emissions are generated across every stage of a vehicle’s life, from raw material extraction and battery production to manufacturing, logistics, use-phase energy consumption and end-of-life processing.
Polestar argues that two factors will ultimately determine whether EVs deliver on their climate promise: the decarbonisation of supply chains and the availability of fossil-free electricity for charging.
Europe leads as cleaner electricity lowers use-phase emissions
Europe continues to be Polestar’s dominant market, accounting for more than 75% of sales. This regional focus is significant, as the increasing share of renewable electricity across European grids is helping to reduce emissions during the use phase of EVs.
The report highlights that declining emissions from electricity generation in several markets contributed to lower overall lifecycle emissions in 2025.
Lohscheller also pointed to changing consumer dynamics, suggesting that concerns over fuel price volatility are beginning to rival traditional “range anxiety” as a driver of EV adoption.
“Electrification delivers clear value for customers: lower running costs, lower emissions and greater peace of mind,” he said.
Materials, batteries and supply chain transparency
Beyond energy use, Polestar’s strategy places significant emphasis on materials and supply chain transparency—areas increasingly under scrutiny as EV production scales.
The company reports that at least 50% of the cobalt used in batteries for models such as the Polestar 2 and Polestar 3 is now recycled, while manufacturing facilities for key models are powered entirely by renewable energy.
Detailed lifecycle data included in the report shows that material production remains the largest contributor to a vehicle’s carbon footprint. For example, the Polestar 4’s total lifecycle emissions of 27.6 tonnes of CO₂ equivalent include 12.6 tonnes from material production alone, according to the breakdown on page 7.
The company is also increasing the proportion of recycled and bio-based materials used in vehicle interiors and components, including textiles derived from PET waste and bio-attributed polymers.
Supplier auditing has expanded as part of this effort. The report notes a steady increase in the proportion of audited suppliers operating in high-risk regions, reaching over 50% for some models in 2025.
Polestar 0 project: delays but continued ambition
Central to Polestar’s long-term sustainability roadmap is the Polestar 0 project, an initiative aimed at developing a truly climate-neutral car without reliance on carbon offsets.
Originally targeting 2030, the project’s timeline has now been pushed back to 2035, reflecting what the company describes as the scale and complexity of eliminating emissions from materials and manufacturing processes.
Despite the delay, Polestar insists the ambition remains unchanged. Research under the initiative has been consolidated within “Mission 0 House” in Gothenburg, a collaboration between industry partners and academic institutions.
Key developments emerging from the programme include a large-scale pilot for ultra-low-emission steel, advances in battery material research, bio-based textile innovations and technologies capable of converting captured CO₂ into new materials.
Mission 0 House secured approximately SEK 100 million in funding over five years and now involves multiple universities and industrial partners.
Fredrika Klarén, Polestar’s head of sustainability, described the initiative as a deliberate shift away from incremental improvements towards more radical solutions.
“While much of the industry invests in hybrids and combustion engines, we focus on solutions that eliminate emissions entirely,” she said.
Growth strategy tied to sustainability
Polestar’s sustainability strategy is built around four pillars: climate, circularity, transparency and inclusion. The company maintains that these principles are embedded across product design, supply chain management and corporate operations.
At the same time, it continues to expand its product line-up. Current models include the Polestar 2, 3 and 4, with the Polestar 5 in development and additional vehicles such as the Polestar 6 roadster and Polestar 7 compact SUV planned later this decade.
The Polestar 4 has emerged as the brand’s best-selling model and plays a central role in its emissions reduction strategy due to its comparatively lower carbon footprint.
Future models are expected to incorporate learnings from current vehicles and ongoing research, particularly in areas such as material efficiency, recyclability and energy use.
Industry context: ambition versus reality
Polestar’s report arrives against a backdrop of mixed signals within the automotive industry. While EV adoption continues to grow globally, some manufacturers have scaled back electrification targets or extended timelines in response to market uncertainty and regulatory changes.
Polestar’s positioning as a “pure EV” manufacturer — one without legacy internal combustion operations — allows it to pursue a more singular strategy. However, it also places greater pressure on the company to demonstrate tangible progress rather than long-term promises.
The emphasis on measurable outcomes is a recurring theme throughout the report. Both Lohscheller and Klarén stress the importance of accountability, particularly as consumers and regulators demand greater transparency around environmental claims.
“Customers expect honesty, measurable progress and accountability,” Klarén said in the report’s foreword.
The road ahead
Looking forward, Polestar expects continued improvements in low-carbon materials and EV technology as the broader ecosystem evolves.
However, the company also acknowledges that achieving its long-term targets will require systemic change beyond its own operations, including cleaner energy systems, more sustainable raw material extraction and deeper collaboration across industries.
For now, the 31% reduction in emissions per vehicle represents a notable milestone—one that Polestar hopes will reinforce its claim that growth and sustainability need not be mutually exclusive.
Whether that model can be replicated at scale across the wider automotive sector remains an open question.
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