Path to Sustainability of Automobile Industry

Executive Summary

In our previous practical guide to carbon neutrality, we talked about the issue in general terms for businesses to facilitate their sustainable strategies. This research paper, however, takes a closer look at the auto industry and takes you down to the sustainable path for the auto parts and automobile sector.

We will discuss the following topics at length to help businesses get ready for more sustainable moves ahead.

  • Auto Sector ESG Materiality Map

  • GHG Emission Reporting

  • Green Value Chains

  • Product Life Cycle (PLC)

  • Climate Risk Assessment

  • Sustainable Policy Landscape

  • Mining Green Revenues

Thanks to ESG Materiality Maps providers like SASB and MSCI, we are able to focus on the key issues for each sector and industry to map out a sustainable path upon it. We will take a closer look at the most essential materiality matters within the auto industry. And as the finest framework, we are trying to utilize and perfecting, ESG provides a much better outlay for examining the sustainable criteria we shall concern for constructing a sustainable business world.

Key Findings

Leading or fading is crucial for businesses in the modern age. It gets even more obvious in sustainable transitions. In this paper, we will help guide your way to sustainable transitions help you get started with some practical advice to lead the transition to sustainability.

Some of our top advice:

  • Take ownership and initiative in making emission reporting;

  • Team up: collective work to make a change;

  • Communicate your sustainable transition with your stakeholders;

  • Work and Plan your sustainable transition with your value chains;

  • Utilize big data solutions to help facilitate your sustainable goals;

  • Make sure your sustainable strategies are dynamic and flexible for adjustment;

  • Seek inspirations from the product life cycle you are managing & create adding value through PLC;

  • Get ahead with policy development in achieving effective legal compliance;

  • Develop climate and environmental governance;

  • Consult with professionals in sustainability;

  • Join the sustainable network and get inspired by your fellow peers, while offering adding value opportunities to the network

Business As Usual without sustainable strategy is no longer an option for growth, auto sector shall get ready for climate risks, including transition risks and policy risks; and depends on the operational and marketing location, physical risks applied, too. Full climate assessment and evaluation of revenue and business structure is the first step. ESG framework and materiality, data solutions, and compliance are helping businesses to uncover more opportunities.

Making EV is only one step to phasing out fossil fuels reliance, there is a long road ahead for auto businesses to truly become sustainable and green for all.

Lack of transparency is risky enough nowadays. There are still companies lacking active disclosure and constantly report on their impact on the ecosystem that they depend on. Without transparency and constancy, businesses are losing sight of making a sustainable business model and missing the opportunities to uncover data insights from reporting their environmental impact.

With experience in the auto sector, GC Insights understand the opportunities and challenges in the auto path to sustainability. One of the most exciting facts in this path is the dynamic nature of solutions that help to construct the auto path to sustainability.

Concentrating on product sustainability involves not just the value chains but the whole ecosystem that connects the auto business and nature together. GC Insights understand the value of collaboration and ready to help businesses in the auto sector connect with wider possibilities made possible by sustainable constructions.

(written by Yitong Yuan)

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