As the risk of climate change is increasing, in addition to rising regulations and customer and investment pressure, the automotive industry is making its way into a new era of sustainability.

According to a report from Capgemini Research Institute, ‘Sustainability in Automotive: From Ambition to Action,’ implementation levels for top sustainability initiatives have improved only in minor increments and even reduced in some parts since the last few years.

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Additionally, other recent challenges, like ongoing chip shortages and supply chain issues, have been forcing automotive organizations to re-focus their priorities.

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“The automotive industry is entering a crucial decade defined by its ability to go all-electric. But while sustainability is credited as a top priority, the industry as a whole is falling behind. Automotive organizations must think practically about their sustainability approach if they are to reach the targets set out in the 2050 Paris Agreement. This includes a significant and renewed commitment to the circular economy that focuses on the full lifecycle of the vehicle as well as the inclusion of scope 3 emissions,” said Alexandre Audoin, Global Head of the Automotive Industry at Capgemini.

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“Accountability is imperative for defining goals and KPIs across the entire organization and progressing against these targets.”