Polestar Decouples Growth From Negative Climate Impact: Emissions Per Sold Car Cut by 31% in Five Years

Key Terms

ghg emissions technical

GHG emissions are the greenhouse gases a company or activity releases into the atmosphere—like carbon dioxide and methane from burning fuels, farming, or industrial processes—that trap heat and drive climate change. Investors care because those emissions translate into future costs and risks (regulation, carbon pricing, supply-chain disruption, asset impairment) or opportunities from cleaner operations; think of them as a company’s ongoing “carbon bill” that can raise or lower its long‑term value.

net-zero technical

Net-zero means a company, country, or activity balances the greenhouse gases it emits with the amount it removes from the atmosphere, so its overall contribution to warming is zero—like a household that offsets all its waste by recycling and composting enough to cancel what it throws away. Investors care because net-zero plans affect future costs, regulatory exposure, reputation and access to capital, and therefore can change a business’s long-term risk and value.

bio-based textile technical

A bio-based textile is a fabric made from natural or renewable biological sources—such as plants, fungi, or engineered microbes—rather than from petroleum-derived chemicals. For investors, this matters because these materials can reduce supply-chain exposure to oil prices, meet rising consumer and regulatory demand for sustainable products, and create new cost and scale challenges for manufacturers much like switching from plastic to paper packaging changes production and sourcing dynamics.

co₂ technical

CO₂ (carbon dioxide) is a colorless gas produced by burning fuels, industrial processes and biological respiration; it acts like a blanket that traps heat in the atmosphere. Investors care because levels of CO₂ drive climate-related rules, taxes and consumer expectations that can raise costs, change demand and alter the value of assets—similar to how a rising thermostat can force someone to change their heating and insulation choices.

• “If you are not reducing emissions while growing, you are choosing not to,” says Michael Lohscheller, CEO Polestar
• Europe’s only pure EV company continues to deliver measurable progress instead of pledges, despite a volatile and challenged industry.
• Polestar 0 project: Large scale pilot for ultra-low-emission steel among progress

GOTHENBURG, Sweden--(BUSINESS WIRE)-- Polestar (Nasdaq: PSNY) today publishes its 2025 Sustainability Report, showing how the Company has since 2020 reduced its GHG emissions per sold car by 31%. During the same period, Polestar has scaled its business and grown annual retail sales to over 60,000 cars, expanded across 28 markets, brought three new models to the road and established manufacturing in factories across three countries.

As climate commitments slip across the car industry, policy signals waver and combustion engine investment continues, Polestar moves in the opposite direction: forward. Europe’s only pure EV company continues to deliver measurable progress instead of pledges, despite a volatile and challenged industry.

The reduction in emissions per sold car since 2020 reflects the Company’s focus on increasing renewable energy use related to battery production and manufacturing, and use of low-carbon materials. Over the past year, increased volumes of Polestar 4, the company’s lowest carbon footprint car to date, has also been a significant factor, alongside the expansion of renewable energy across key European markets, which drives down use-phase emissions. Europe remains Polestar’s largest market, representing over 75% of sales. Polestar continues to stay below its emissions reduction curve, heading towards its goal of becoming a climate-neutral company by 2040.

Michael Lohscheller, Polestar CEO, says: “If you are not reducing emissions while growing, you are choosing not to. Electrification delivers clear value for customers: lower running costs, lower emissions and greater peace of mind, as volatile oil prices and fuel scarcity mean pump anxiety is increasingly replacing range anxiety. As clean electricity scales, electric vehicles are becoming not just the sustainable choice, but the smarter, more reliable one.”

At a societal level, electrification offers a clear path to reducing lifecycle GHG emissions from passenger transport, as renewable energy and EV adoption scale together. As electricity becomes cleaner and more stable than petroleum-based fuels, the role of electric vehicles as a climate solution is becoming even more evident.

Recent results from the Polestar 0 project
Work at the Mission 0 House in Gothenburg brings together industry and academia to eliminate emissions from high-impact materials, products, and processes. This research is driving new materials, technologies, and partnerships toward the Polestar 0 project goal of a net-zero car without offsets by 2035. The initial 2030 timeline has been revised, reflecting the scale and complexity of the challenge, but also the opportunity. On the contrary of giving up, Polestar consolidates the task through the dedicated research in the Mission 0 House.

Fredrika Klarén, Head of Sustainability at Polestar, says: “The Polestar 0 project pushes us into new territory. While much of the industry invests in hybrids and combustion engines, we focus on solutions that eliminate emissions entirely. The innovation emerging from this project shows the power of collaboration and material science, and importantly, how well positioned we are to move the industry forward.”

Key developments from Mission 0 House include:

• Large-scale pilot for ultra-low-emission steel
• Research on materials for batteries
• Development of bio-based textile alternatives
• Technologies converting CO₂ into new materials

Mission 0 House was formally established in 2025, securing close to SEK 100 million in funding over five years towards the research consortium. The current collaboration includes five Swedish higher education institutions and six companies.

Notes to editors
Mission 0 House
Since 2024, Polestar’s climate research is centered in Mission 0 House in Gothenburg, together with academia and different industries to eliminate emissions from materials, products, and processes.

Following a pilot phase, Mission 0 House was formally established in 2025, securing close to SEK 100 million in funding. The aim is to develop scalable solutions and patents that support climate-neutral materials and products and help manufacturers reduce emissions.

Research is organised across metals, chemicals, and processes, with interdisciplinary teams working closely together. During 2025, new partners joined and projects expanded, strengthening Mission 0 House as a platform for applied research and collaboration. The current collaboration includes five Swedish higher education institutions, University of Borås, University West, Jönköping University, Karlstad University, and Mid Sweden University, alongside companies Borgstena, Polestar, Sekab, SSAB, TMG Automotive, and Together Tech, with additional financial support from the Knowledge Foundation, Vinnova and Västra Götalandsregionen.

Read more on: www.Mission0House.org

About Polestar
Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand with a focus on uncompromised design and innovation, and the ambition to accelerate the change towards a sustainable future. Headquartered in Gothenburg, Sweden, its cars are available in 28 markets globally across North America, Europe and Asia Pacific.

Polestar has four models in its line-up: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Planned models include the Polestar 7 compact SUV (to be introduced in 2028) and the Polestar 6 roadster. With its vehicles currently manufactured on two continents, North America and Asia, Polestar plans to diversify its manufacturing footprint further, with production of Polestar 7 planned in Europe.

Polestar has an unwavering commitment to sustainability and has set an ambitious roadmap to reach its climate targets: halve greenhouse gas emissions by 2030 per-vehicle-sold and become climate-neutral across its value chain by 2040. Polestar’s comprehensive sustainability strategy covers the four areas of Climate, Transparency, Circularity, and Inclusion.

Forward-Looking Statements
This press release contains statements that are not historical facts, but rather forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that Polestar or its management believes or anticipates may occur in the future. All forward-looking statements are based upon, as applicable, our current expectations, various assumptions and data available from third parties. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including those risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Polestar’s Form 20-F, and other documents filed, or to be filed, with the U.S. Securities and Exchange Commission by Polestar. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any such statements in light of new information or future events, except as required by law.

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Ellen Broomé
ellen.broome@polestar.com

Source: Polestar