In the critical fight against climate change, the focus has shifted to sustainable supply chains as a key tool for cutting global emissions. In a world where companies are at the helm of more than two-thirds of global emissions, the spotlight turns sharply to our supply chains—a staggering 90% of these emissions are entangled within them, according to insights from the Environmental Protection Agency (EPA). This is particularly important in the automotive industry, where the path to reducing carbon emissions presents a significant challenge and an exceptional opportunity for innovation and leadership.
Despite making progress in reducing direct and energy-related emissions, the automotive sector continues to grapple with ongoing challenges in addressing its entire carbon footprint, especially the emissions embedded within its wider supply chain. The situation is concerning: major automotive manufacturers have only marginally decreased their upstream Scope 3 emissions, while their suppliers have actually increased theirs, highlighting the complexity of achieving industry-wide decarbonization.
