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A brand new briefing assesses carmakers’ implementation of the EU Batteries Regulation due diligence obligations.
Because the world continues to shift to renewable vitality methods and electrical autos, that are key to attaining local weather neutrality by 2050, guaranteeing sustainable and accountable battery provide chains is significant.
The EU Batteries Regulation due diligence guidelines, if applied appropriately, might be a turning level for inexperienced and moral batteries. Beneath these guidelines, firms might want to establish, mitigate and account for human rights, environmental and local weather change impacts in lithium, nickel, cobalt and graphite provide chains of batteries discovered on the EU market. With the foundations as a consequence of enter into drive in August, and at a time of elevated pushback towards sustainability necessities, now could be the time to maintain ambition excessive, and never decrease the bar.
This briefing takes a have a look at carmakers’ implementation of the EU Batteries Regulation due diligence guidelines so far, showcasing greatest follow examples and areas for enchancment. The evaluation, while not exhaustive, depends on publicly out there knowledge and builds on T&E’s Pedal to the Metal study and Lead the Charge’s Leaderboard results. It finds that:
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General, progress is being made. OEMs have began rolling out provide chain insurance policies and transparency measures, making ready to fulfill the due diligence necessities. For instance, while not all automakers are assessing all the mandatory dangers, the bulk have some type of danger evaluation in place. The important thing now might be to make sure that all dangers are being assessed all through whole provide chains to ensure that a complete danger mitigation to happen.
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When how particular person environmental dangers are mitigated, there has additionally been some progress throughout completely different actions. There was vital progress in disclosing greenhouse fuel emissions, with nearly all of carmakers disclosing complete scope 3 GHG emissions.
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Headway has additionally been made in implementing traceability methods. While not all carmakers are tracing their battery minerals all the best way again to the mine, a majority have some type of system in place.
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However, gaps stay. While carmakers have common insurance policies on deforestation of their provide chains, just one has a concrete, time-bound dedication. As well as, while carmakers typically disclose their very own water utilization, they don’t disclose water utilization by suppliers. Progress in these areas would help danger mitigation.
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Lastly, European automakers are way more superior of their preparedness in comparison with Chinese language OEMs, with European firms equivalent to BMW and Mercedes, main throughout quite a few due diligence necessities, equivalent to danger identification and evaluation and provide chain traceability.
It’s subsequently extra vital than ever for the European Fee to get implementation proper. T&E calls on the European Fee to:
- Preserve the first textual content of the battery regulation due diligence provisions and chorus from any weakening of the obligations, specializing in pure reporting simplification.
- Finalise the rules for implementation of the due diligence necessities, based on greatest follow and in keeping with present worldwide requirements, earlier than entry into drive of the foundations, while guaranteeing notified our bodies throughout all Member States are in place to confirm compliance.
- If delaying the foundations is unavoidable, it needs to be a delay of not more than 1 yr.
Set up sturdy and focused standards for recognising due diligence schemesas foreseen below the Regulation. The standards should guarantee schemes can solely be recognised in the event that they exhibit full alignment with the regulation.
Article first printed on T&E website.
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