CLIMATE SOLUTIONS & SUSTAINABILITY FOR THE AUTOMOTIVE INDUSTRY

Automotive value chains are vast, international, and often opaque — making it difficult to measure, manage, and reduce emissions across all tiers. Particularly Scope 3 emissions from raw materials, logistics, and parts suppliers are a major challenge for manufacturers seeking credible climate strategies. Lack of transparency also increases risks in terms of ESG compliance and reputational exposure.

Regulatory demands for climate disclosure and risk management are increasing — particularly in the EU. Automotive companies are now expected to report transparently on GHG emissions, climate risks, and biodiversity impacts. However, many lack the internal resources and clarity on how to meet these standards effectively and consistently.

The shift to electric mobility is central to decarbonisation — but also brings new sustainability challenges, particularly around battery sourcing, lifecycle emissions, and greenwashing concerns. Stakeholders increasingly expect transparency and measurable impact beyond electrification alone.

Automotive production processes – from steel and aluminum to battery manufacturing – are energy-intensive and often fossil fuel-reliant. Transitioning to low-carbon production is not only capital-intensive but also operationally complex, especially in existing plants.

Investors, regulators, and customers demand more than commitments — they want proof of progress. The challenge lies in tracking real emissions reductions, biodiversity outcomes, and climate resilience, and reporting this in a transparent, verifiable way.

The automotive sector is under pressure to innovate rapidly — from autonomous driving to connected vehicles and new mobility models. However, these innovations often focus on performance and convenience, while their long-term environmental footprint remains under-assessed. Integrating sustainability into R&D, product design, and new business models is a growing challenge.