The automotive industry has relatively high exposure to environmental risk, while social risks could become more relevant over the longer term due to changing consumer habits. Environmental regulation is leading the global auto industry toward carbon dioxide (CO2) neutral vehicle production. Sizable investments in technologies and new products are already putting operating margins and free cash flow under pressure. This report card expands on the Risk Atlas sector analysis by focusing on the credit-specific impacts, which in turn forms the basis for analyzing the exposures and opportunities of individual companies in the sector.