to Address Auto Supply Chain Sustainability in the Face of Climate Change
Ann Arbor, MI - The Center for Automotive Research (CAR), in collaboration with Fresh Coast Climate Solutions, announces the release of an industry research paper titled, "Escalating Need for Auto Supply Chain Action to Align with Paris and Limit Warming to 1.5°C."This comprehensive study delves into the critical intersection of automotive supply chains, climate change, and sustainability initiatives. As the world grapples with the urgent need to
address climate change, this research highlights the imperative for the automotive industry to
align with the Paris Agreement and limit global warming to 1.5°C.

Sustainability has emerged as a central concern in the automotive sector, particularly as the
industry navigates unprecedented challenges such as supply chain disruptions due to the
pandemic and ongoing parts and semiconductor shortages. Despite these obstacles,
automakers and suppliers are increasingly prioritizing sustainability practices throughout their
operations, driven by both internal motivations and external pressures.

The research paper underscores the growing prominence of environmental, social, and
governance (ESG) initiatives in the industry. With a focus on reducing greenhouse gas emissions
in line with the Paris Agreement's ambitious targets, automakers are taking steps to integrate
sustainability into all facets of their operations. Organizations such as the International Energy
Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) are providing guidance
to achieve global net-zero emissions by 2050. Many vehicle manufacturers have already
established carbon neutrality targets, publicly sharing their sustainability efforts and goals
through annual sustainability reports, but significant implementation progress is needed to
achieve them.

The research also highlights the need for more consistent and measurable data in reporting
across the industry. While numerous companies are making commendable progress, it is
inconsistent across the industry and disparities exist in the way sustainability initiatives are
communicated to stakeholders and investors. To address these challenges, a unified and
coordinated effort is crucial to achieve meaningful sustainability goals and mitigate the
environmental and social impact of automotive operations.

CAR researchers undertook an in-depth exploration of the industry's sustainability landscape
through supplier roundtable sessions, vehicle manufacturer interviews, and analysis of publicly
available information. The cornerstone of this research lies in the comprehensive interviews
conducted with vehicle manufacturers, covering six key areas: Corporate Goals and
Commitments, Carbon Reduction, Social Responsibility, Sourcing and Supplier Relations,
Product and Material Sustainability, and Future Directions.

From these insights, the research paper offers a series of recommendations including
establishing deeper supply chain communications, placing value on supplier climate activity,
standardizing targets and measurements, and expanding the workforce knowledge base, all
aimed at fostering greater collaboration within the industry. By identifying areas where focused
action can be taken, the automotive sector can accelerate its progress toward the 1.5°C target
and contribute significantly to global climate change mitigation efforts.

"The automotive industry stands at a critical juncture where sustainability isn't just an option
but a business, product, and service design necessity. Our research underscores the importance
of cohesive efforts to align with climate goals and drive impactful change across supply chains,"
said Dr. K. Venkatesh Prasad, Senior Vice President of Research at CAR.

This research paper offers an independent insight into the ongoing dialogue on sustainability in
the automotive sector. As the industry moves forward, collaboration, commitment, and
innovation will be essential in achieving the ambitious targets set by the Paris Agreement and
ensuring a sustainable future for generations to come.

Please join us for a virtual Fireside Chat discussion on Thursday, September 7th as we release
the research paper. For more information about the research paper, virtual Fireside Chat
session and the Center for Automotive Research, please visit CAR's official website.

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The Center for Automotive Research is a nonprofit organization; its mission is to inform and advise, through independent research, education, and dialogue, enabling a more viable and sustainable automotive ecosystem.