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Strategic Intelligence: Net Zero Strategies in Automotive (2024)

Publisher GlobalData
Published Dec 18, 2024
Length 52 Pages
SKU # GBDT19550370

Description

Strategic Intelligence: Net Zero Strategies in Automotive (2024)

Summary

Intense regulatory pressure on emissions means companies in all sectors need a net zero strategy. Most automotive companies have set 2050 as the target year for achieving net zero carbon emissions. In the interim (2025-2035), they will implement shorter-term emission reduction goals, typically aiming for around a 30% reduction by 2030.

The automotive sector is concentrating on three main strategies to reach these targets -
  • Electrification
  • Alternative fuels
  • Circular Economy
Why do automotive companies need a net zero strategy? > Governments worldwide have placed intense regulatory pressure on reducing emissions, with advanced economies putting net zero targets in place for as early as 2045. Transport is one of the biggest contributors to greenhouse gas (GHG) emissions, so OEMs must align with regulations and environmental standards.

Electrification is the main decarbonization strategy for the automotive industry> OEMs are focusing on electrifying their vehicles. Many OEMs have developed partnerships with battery suppliers to give them a competitive advantage in battery technology. The main constraints to electrification are range anxiety and the upgrades needed to power grids.

Alternative fuels are less popular than electrification> Investing in alternative fuels is one of the most effective strategies automakers can undertake to reduce their Scope 1 emissions. Companies such as Ford offer alternative fuel options for fleet vehicles, helping businesses reduce their Scope 1 emissions.

Adopting a circular economy model will be crucial to reducing Scope 3 emissions> Most of the Scope 3 emissions generated in the automotive sector occur upstream through the extraction of raw materials and the manufacturing of components. One of the biggest drawbacks of producing EVs is the environmental impact of sourcing and manufacturing batteries, making recycling battery cells a key strategy for reducing Scope 3 emissions.

Who is winning the race to net zero? Many leading automotive companies have set a net zero target for 2050. Mercedes-Benz has an ambitious plan for all its worldwide plants to run on 100% renewable energy by 2039 and aims to have an all-electric fleet by 2030. Mercedes had one of the biggest reductions in Scope 1 and 2 emissions compared to other prominent OEMs between 2021 and 2023, at 41%.

Scope
  • This report offers a comprehensive analysis of net zero strategies within the automotive industry, highlighting the key approaches being implemented by companies to reach this goal.
  • It features prominent automotive companies making significant progress towards achieving net zero emissions, along with detailed case studies showcasing specific strategies in action.
  • Additionally, the report presents detailed Scope 1, 2, and 3 emissions data for 20 major automotive companies, providing valuable insights into their environmental impact reduction efforts.
Reasons to Buy
  • GlobalData’s thematic intelligence ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
  • This report is essential reading for senior executives to understand how the automotive industry is striving towards net zero.

Table of Contents

52 Pages
Executive Summary
Why Automotive Companies Need a Net Zero Strategy
Strategy 1: Electric Vehicles
Strategy 2: Alternative Fuels
Strategy 3: The Circular Economy
Who is Winning the Race to Net Zero?
Glossary
Further Reading
Our Thematic Research Methodology
Contact Us
List of Tables
Table 1: Construction Industry Key Data
Table 2: Germany, Key Economic Indicators
Table 3: Germany, Commercial Construction Output by Project Type (Real % Change), 2019-28
Table 4: Germany, Top Commercial Construction Projects by Value
Table 5: Germany, Industrial Construction Output by Project Type (Real % Change), 2019-28
Table 6: Germany, Top Industrial Construction Projects by Value
Table 7: Germany, Infrastructure Construction Output by Project Type (Real % Change), 2019-28
Table 8: Germany, Top Infrastructure Construction Projects by Value
Table 9: Germany, Energy and Utilities Construction Output by Project Type (Real % Change), 2019-28
Table 10: Germany, Top Energy and Utilities Construction Projects by Value
Table 11: Germany, Institutional Construction Output by Project Type (Real % Change), 2019-28
Table 12: Germany, Top Institutional Construction Projects by Value
Table 13: Germany, Residential Construction Output by Project Type (Real % Change), 2019-28
Table 14: Germany, Top Residential Construction Projects by Value
Table 15: Germany, Key Contractors
Table 16: Germany, Key Consultants
Table 17: Germany, Construction Output Value (Real, $ Million)
Table 18: Germany, Construction Output Value (Nominal, EUR Million)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: Where do corporate green house gas emissions come from?
Figure 2: How companies get to net zero emissions
Figure 3: GHG emissions and reduction targets, 1970 to 2070
Figure 4: Share of 2024 BEV production by manufacturer
Figure 5: Light vehicle unit sales, 2018 to 2035
Figure 6: Hydrogen fuel cell vehicle sales, 2018 to 2035
Figure 7: Hydrogen fuel cell vehicle sales as a share of total light vehicles sales, 2024 vs. 2035
Figure 8: E-methano supply outlook, 2023 - 2040
Figure 9: Top five countries by fatty acid methyl ester (FAME) consumption
Figure 10: Top five countries by renewable diesel consumption, 2023-2030

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