Why does ESG matter in automotive manufacturing?

July 21, 2022

Rio Tinto announced a first-of-a-kind multi-materials partnership with Ford to develop a more responsible, secure, sustainable supply chain. On top of having a secure supply of materials to make greener cars, everyone in the supply chain must be able to trace how those materials were created.

START helps close the gap in the industry with transparent, traceable, and certifiable data.

Race against time for carbon-free automotive industry

Consumers, governments, and investors are all pressuring materials suppliers and original equipment manufacturers (OEMs) to become carbon free—and more conscious of environmental, social, and governance (ESG) metrics.

Consumers want to not only purchase sustainable cars, but also know that the materials in them are responsibly produced. They’re ready to buy from companies that value a completely sustainable and ethical value chain.

Investors share a similar desire. They want to see companies prioritise ESG-friendly operations1, and follow a robust sustainability plan.

66%


Almost 66% of consumers are highly concerned with automotive sustainability.

Source: Accenture

Meanwhile, automotive OEMs must manage laws and regulations2 to promote responsible, sustainable operations.

To meet these demands, you need ESG data from across the value chain.

What can help auto’s net-zero strategy?

START’s breakthrough platform helps automotive companies realise truly carbon neutral production.

The automotive industry is under pressure to eliminate emissions as the urgency around climate change mounts and windows to meet compliance deadlines shrink.

Currently, most CO2 emissions-slashing efforts focus on the impact of the end product—vehicles. Manufacturers like you use sustainable materials such as aluminium to produce more electric vehicles that meet aggressive decarbonisation agreements. Aluminium’s lightweight properties increase a vehicles’ battery range without compromising strength. For every 100kg removed in automobile weight, drivers can see a 10-15% increase in driving range.3

7%


Tail pipe auto emissions are 7% of global CO2 output. There is an opportunity for greater impact: Reduce emissions in vehicle and materials manufacturing process.

But many organisations leave out a factor that’s critical to erasing their carbon footprint: The sourcing and manufacturing impact of car materials.

Why?

Because a key element is missing: Transparent, traceable, certifiable data. Without ESG insights across the entire, complex automotive value chain, companies lack the holistic view necessary to measure their full environmental impact.

There’s no assurance that the materials comprising end products are truly sustainable. Ultimately, this prevents them from closing the gaps in their sustainability objectives and fully realising net-zero carbon targets.

60%


By 2040, emissions from material production may account for 60% of lifecycle emissions in the automotive sector.

Source: McKinsey & Company

Easier said than done

Industry leaders recognise the power of transparent data. It enables you to tell your sustainability story to customers and prove that you contribute to a carbon neutral world. Your future success hinges on the ability to measure and share ESG data.

ESG data can:

  • Improve customer trust and loyalty

  • Simplify compliance

  • Boost investor confidence

  • Enhance brand reputation

  • Establish baseline metrics, enabling improvement

But until now, efforts to access such data have been unavailable.

How can OEMs, suppliers, and other automotive industry stakeholders get access to this data (especially considering all of the touchpoints involved across a complex supply chain)?

Even if you can get the right information, how can you confirm its authenticity? Likely, you won’t be able to access real-time information, which reduces the data’s value.

START solves these problems.

START measuring your impact

START sets a new traceability and transparency standard. Our revolutionary platform unlocks the critical ESG metrics you need to measure your materials’ impact and ensure your aluminium source minimises harm. Instantly.

Powered by breakthrough blockchain technology, START delivers real-time insights across aluminium’s journey—from mine to market. Because of blockchain’s unalterable properties, stakeholders can trust the ESG data that’s collected. Complete assurance simplifies compliance and strengthens customer trust, while simultaneously lifting your brand’s reputation.


START tracks 14 key lifecycle metrics, including one especially important metric for automotive companies: Carbon emissions throughout the production of aluminium.

So, when assembling a car, you’ll have the information you need to select the most sustainable aluminium and, in the future, other materials. You now have the power to create the most sustainable car.

START tracking today

Join the START programme. As part of START, you also gain access to a team of sustainability experts who can help ensure your sustainability agenda meets your stakeholders’ demands to help you tell your sustainability story.

Bring transparency to materials sourcing and contribute to a more sustainable future.

Read the next blog in our automotive series:

Two Essential Steps to Assure Sustainability in Automotive

1The Automotive Industry in the Era of Sustainability / Investment firms are pushing for sustainability and climate change as investment criteria to evaluate target companies. | Capgemini Research Institute
2EU proposes effective ban for new fossil-fuel cars from 2035 / European Union proposes 55% cut in CO2 emissions from cars by 2030 and 100% cut in emissions by 2035 | Reuters
3 Electric Vehicles: Big Boost For Aluminium Makers | Business World