Across the world, new regulations are pushing for greener transport. As sustainability becomes paramount to markets and investors, transparency and accountability around sustainabilityperformance must align with international reporting frameworks. The key for the automotive industry is reducing value-chain greenhouse gas emissions, and vehicle carbon footprint. Electrification has been an effective way to decarbonise vehicle use phase emissions especially when coupled with energy transitions in electricity supplies; however, there are currently stronger headwinds in electric vehicle deployment than anticipated. This report considers how OEMs (Original Equipment Manufacturers) are negotiating the landscape.

What does this new paradigm look like for consumers, and what challenges are automakers facing going into the future?

This Mobility Paper will cover:

• OEMs need to change, quickly
• Key sustainability tasks facing automotive makers
• The road ahead
• From working backwards to moving forwards

Key Takeaways

• As sustainability becomes paramount to markets and investors, transparency and accountability around sustainability performance must align with international reporting frameworks
• In Europe, US and China, new regulations are pushing for greener transport
• A significant transition towards cleaner energy sources will take place with fleet electrification and grid decarbonisation
• The path to achieving greater sustainability is beset with hurdles including supply chain transformation and disruption, raw material supply and cost, geopolitical concerns and design culture
• As companies transition increasingly to electric vehicles (EVs), accurate and standardised data collection and reporting of emissions for setting achievable targets is needed
• OEMs must embed supply chain decarbonisation into their operating model
• Reducing carbon footprint is a matter of survival with consumer demand, and government regulation

Contributing Editors

• Valtteri Vaisanen, Consultant, S&P Global Mobility.
• Qifan Yang, Lead Product Analyst, S&P Global Mobility.

• Xi Wang, Research and Analysis Associate Director, Sustainable Mobility, S&P Global Mobility.