Extensive industry-specific deadlines must be met, while emission standards In the absence of , automakers have some time, but not much, to incorporate environmental, social and governance (ESG) criteria into their operating costs.
In a global “race to zero” effort, the United Nations calls for a 45 percent reduction in emissions by 2030 and reaching net zero by 2050.
ford, general motors, Toyota, Nissan, volvo Other automakers are among the more than 90 companies participating in the U.S. Department of Energy’s Better Climate Challenge to reduce their portfolio’s greenhouse gas emissions by at least 50 percent within 10 years. .
As automakers prioritize ESG, there is increasing pressure on manufacturers and suppliers to document, codify and comply with new standards to remain competitive. Downstream suppliers face a series of requests from customers for disclosures and data that may be new and not readily available. However, this evolution within the industry also presents opportunities for differentiation by implementing sustainable practices and demonstrating genuine and impactful engagement with ESG.
Ubiquity of ESG
While many companies initially focused on the environmental aspects of ESG, they are now analyzing their social, economic and data-driven impacts on the world and people around them.
Environmental impact remains a major focus for the automotive industry. About 27% of U.S. greenhouse gas emissions come from transportation, the EPA reports, prompting governments, consumers and automakers to cap and minimize emissions to combat climate change. thinking.
Automakers and zero-emission vehicle nations are working to change production, vehicle emissions, and other standards to achieve carbon neutrality. The target date range, currently broad, is narrowing day by day due to issues with production capacity, infrastructure and access to raw materials such as lithium.
https://www.autonews.com/guest-commentary/reduce-emissions-automakers-esg-standards-are-crucial Automakers’ ESG standards matter to reduce emissions