A recent study by logistics firm Kuehne + Nagel highlights a significant gap between sustainability commitments and real actions in the automotive industry. This study, led by Achim Glass, the head of business development in Automotive + New Mobility at Kuehne + Nagel, offers an in-depth look at the sustainability efforts within this sector.
Current State of Sustainability in Automotive Logistics
Despite the automotive industry’s efforts to reduce its carbon footprint, the manufacturing and logistics involved in vehicle production continue to be major sources of greenhouse gas (GHG) emissions. A substantial portion of these emissions comes from the transportation of parts and finished vehicles. The study aligns with the GHG Protocol, which categorizes emissions into three scopes, emphasizing that production and logistics must be viewed collectively when assessing an automotive company’s carbon footprint.
Research Approach by Kuehne + Nagel
Kuehne + Nagel, providing comprehensive logistics services in sea, air, road, and rail, aims for carbon neutrality in its sea freight shipments by 2030. The company conducted a year-long study from 2022 to 2023, focusing on 50 leading companies in the automotive sector. This research sought to understand the real progress of these companies regarding their sustainability goals, particularly in scope 3 emissions, which encompass the wider supply chain.
Objectives and Methodology
The study set out with three objectives: understanding the automotive industry’s sustainability priorities, how these priorities are reflected in logistics procurement, and how Kuehne + Nagel can assist in reducing scope 3 emissions. The absence of historical data on these topics underscored the uniqueness of this research.
The team, led by Christina Heggemann, conducted desk research and analyzed customer requests for quotations (RFQs), interviewing key account managers. This approach offered a neutral perspective, distanced from the automotive industry.
Findings and Implications
The survey, with a 94% response rate, revealed that only 9% of the companies had a defined sustainability budget. Furthermore, 53% had undefined scope 3 emission targets, with the rest setting short-term targets only up to 2030. A critical finding was that reducing scope 3 emissions is not a priority in the global automotive industry. Most sustainability initiatives focus on scopes 1 and 2, neglecting the broader supply chain emissions.
Kuehne + Nagel’s analysis indicated that sustainability considerations are often overlooked in RFQs from OEMs and tier suppliers. This gap presents a challenge for the industry, considering its significant carbon footprint. The research segmented customers into four categories based on their sustainability activities, finding only 5% qualified as best-in-class in scope 3 emissions management.
Conclusion
This study by Kuehne + Nagel serves as a crucial insight into the automotive industry’s sustainability efforts, particularly in the area of scope 3 emissions. It highlights the need for more comprehensive strategies and actions to align with declared sustainability goals within the industry.
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