The rising role of renewable energy supply in automotive production
By Ilkhan Ozsevim2024-02-07T22:19:00
The auto industry’s push for sustainability goes beyond vehicle innovation, with renewable energy in production crucial for cutting global carbon emissions.
What does a genuine effort towards sustainable automotive production look like? As decarbonisation efforts were extended beyond Scope 1 (emissions directly from a company’s operations), to include Scope 2 (those generated indirectly from purchased energy) and Scope 3 (those of all n-tier suppliers across the value chain); automotive production realised that genuine sustainability efforts demand a holistic approach.
For automotive OEMs and tier suppliers, this means that the carbon footprint produced by finished vehicles is only only a small fraction of the equation. The energy output generated during production is essential to the entire decarbonisation formula. Put another way, what can an OEM profit if it creates green vehicles using coal-black processes?
The automotive manufacturing sector is now increasingly turning to renewable energy sources such as wind, solar, biogas and electricity to underpin its operations, as the industry shifts towards sustainability and carbon neutrality.