With consumers, governments and investors pushing organizations towards more sustainability and circular economy:

How can you unfold strategic possibilities and risks in order to ensure stakeholder-friendly business development while adding value to your business?

Investigations have shown, that round about 60% of companies in the automotive industry claim to have a comprehensive sustainability strategy with well-defined goals and target.

But implementation seems to be fragmented.

Approximately 50% are supporting and promoting circular economy – apparently the most implemented sustainability initiative.

Sustainability a must-win battle

When I recently discussed with colleagues and partners in automotive about the most important challenge and must-win battles for the future of this industry – with long and global supply chains -, we could easily agree on, that this is by far: sustainability.

Despite of the fact, that electrical car models spring up like mushrooms now, it is clear, that sustainability is more than reducing CO2 emission.

In Denmark for example, politicians are discussing right now the possibility to include calculation of car damages repaired by recycled parts, into negotiations for the car taxation of new cars.

In an industry with a long and global supply chain, I see the following areas to focus on:

  • Develop sustainability as an organization wide mission.
  • Make use of technology to improve sustainability of operations.
  • Envision and develop sustainability initiatives across the automotive value chain.
  • Aim for tangible progress on sustainability.
  • Strengthen alliances and partnerships for greater impact and sharing investments.

And some examples in more detail you can have a look into:

  • R&D and Product sustainability: To design products in order to reduce environmental impact and optimizing the use of natural resources.
  • Sourcing of finished products and material: To aim for sourcing and production with lowest environmental effect. Furthermore, evaluate whether you can e.g. lease production equipment. And think also about factors like fair work and trade conditions. -> Ensure, that processes and procedures are compatible with human and environmental guidelines:  Due Dilligence
  • Manufacturing: To develop and implement production and quality processes in order to reduce waste and improve recycling initiatives as e.g. remanufacturing parts or recycling waste. –> Look into circular economy possibilities.
  • Sales & Marketing: Encourage remanufacturing parts, recycling of cars etc.
  • IT:g. refurbished IT equipment, energy consumptions in data centers etc.
  • Mobility as a Service: To encourage sharing transport.

There are surely plenty of more possibilities. Important is, I believe, that you decide where to start – where your company can make the biggest impact and by that create value for your business.

Make it your company’s mission – this will ensure further progress on your sustainability.