The Science-Based mostly Targets Initiative (SBTi) final week lifted a temporary block on the verification of 1.5C-aligned emissions targets by automotive manufacturing companies.
This had been in place whereas the Initiative developed new steering on how these companies ought to measure and credibly scale back emissions generated in using their parts and autos. The brand new steering was described by SBTi co-founder Alberto Carrillo Pineda as “reflective of the scientific imperative for this critical transformation” – which means the journey to net-zero for OEMs.
It was subsequently revealed that EV gross sales reached report international highs over the previous 12 months, surging 35% year-on-year.
However not all OEMs are created equal. Some are main the cost for EVs whereas others are lagging. Furthermore, the SBTi necessities will cowl upstream emissions in provide chains and people generated in manufacturing, in addition to these from automobile use.
Clear transport advocacy community Lead the Cost just lately published a leaderboard evaluating and contrasting how automakers are decreasing emissions throughout the board. Right here, we pick the important thing findings.
Car emissions
Tailpipe emissions account for 75% of the street transport sector’s emissions by the SBTi’s estimates.
So, whether or not an automaker has elevated its EV gross sales and has credible plans to proceed doing so is a key consideration when assessing its sustainability efforts.
Of the 18 firms assessed by Lead the Cost, Tesla is the one one with a fully-electric portfolio.
Chinese language state-owned firm GAC noticed EVs accounting for 61% of its gross sales in 2023 whereas the proportion for BYD, which can be China-based, was 47%. BYD notably stopped selling purely petrol and diesel-powered cars two years ago.
On the backside of the desk is Honda. Solely 0.5% of Honda’s gross sales final 12 months have been accounted for by electrical fashions. Toyota didn’t fare significantly better, at 1%.
Pure electrical autos additionally accounted for lower than 10% of 2023 gross sales for Ford, Stellantis, Kia, Renault and Nissan.
Low-carbon provide chains
Whereas GAC and BYD are swiftly electrifying their portfolios and succeeding with their EV advertising, Lead the Cost ranked these companies extraordinarily poorly by way of the actions they’re taking to section out fossil fuels from their enterprise operations, worth chains and the broader economic system.
Neither scored greater than 3% on this indicator.
Kia, Honda, Toyota and SAIC – all of that are additionally headquartered in Asia – didn’t rating a lot greater. SAIC was given simply 1% and the opposite companies all scored 7% or decrease.
In distinction, whereas some US-based and European automakers are making slower progress in electrifying their portfolios, they’re forging forward with efforts to scale back emissions and change to wash vitality in manufacturing and provide chains.
Ford comes high of the desk total. A rating of 29% on decreasing the environmental influence of its operations and provide chains helps to stage out the truth that simply 3% of its gross sales have been EVs in 2023.
Ford announced 18 months ago contracts with three strategic metal suppliers to safe lower-carbon supplies for integration in autos from 2023. This constructed upon a First Movers Coalition pledge for Ford to make use of 10% licensed carbon-neutral metal by 2030.
The agency has additionally up to date its provider code of conduct to stipulate that suppliers ought to set and report towards science-based emissions discount targets.
Main the Cost did give Mercedes-Benz and Volvo greater scores for decreasing provide chain emissions than Ford. Each acquired scores of 36%. Tesla additionally scored a wholesome 31%.
Mercedes-Benz is aiming to supply greater than 200,000 tonnes of lower-CO2 metal by 2030 and has a imaginative and prescient to ‘green’ all of its metal provide by 2039 – the date by which it needs to function a net-zero worth chain. Suppliers of all supplies and parts have been requested to pledge to assist this purpose.
The agency has additionally embedded new recycled content material targets into provider contracts.
As for Volvo, the enterprise has a 2040 net-zero goal for the entire worth chain and has pledged to set 1.5C-aligned interim targets. It committed late last year to scale back the embodied emissions of its vehicles by 75% by 2030 towards a 2018 baseline by way of adopting recycled content material, near-zero emission aluminium and lower-carbon ocean freight choices.
Lead the Cost attributes elevated ambitions for clear provide chains within the US and EU partly to policymaking.
The US’s Inflation Discount Act (IRA) put aside a complete of $369bn for supporting low-carbon industries and local weather adaptation, together with tax provisions for companies that generate or use renewable electrical energy and/or low-carbon hydrogen.
And, within the EU, the Carbon Border Adjustment Mechanism is an element. Furthermore, the bloc is prepping a rival to the IRA within the type of the Net-Zero Industry Act. The Act is unlikely to cross forward of this summer season’s elections however will initially put aside €250m for low-carbon focus industries corresponding to automaking.
