Is there a future for automotive without sustainability?

Making the automotive industry and its OEMs more sustainable

For decades, the automotive industry and environmental sustainability have not been the best of friends. Customer choice was not focused on CO₂ per km, but on safety, performance and Total Cost of Ownership (TCO). Progress came mainly through regulatory changes or operational cost pressure. Today, new technologies like Electric Vehicle (EV), autonomous driving, digitalization and new business models for a circular car offer new possibilities.

10%

Only 10% of companies in the automotive sector are on track to achieve net zero by 2050

2.6x

ESG high performers deliver a 2.6x higher total shareholder return

58%

of customers accept higher purchase prices for a more sustainable vehicle

How sustainability is changing the automotive industry

Sustainability on the rise

Environmental sustainability in the automotive sector has gone a long way. Today, still in the absence of a strong customer pull at the Point of Sale, we believe new technologies like EVs, autonomous driving, digitalization, and new business models for circular cars will drive the automotive industry towards a more sustainable future.

The relationship between ESG performance and business value has long been a subject of interest, and numerous efforts have been made to explore and understand it.

2.6x

ESG high performers deliver a 2.6x higher total shareholder return

A strong sustainability strategy - one that is clearly linked to outcome-driven metrics – can lead to better business performance. Define the overall governance model and set measurable ESG targets and KPIs to act upon. Understand the effects of more sustainable business practices on your business.

Design and implement critical sustainability reporting workflow processes, including reporting formats and data lifecycle management, and establish KPIs to track efficacy. Ensure robust data governance and quality is integrated in processes.

Design and configure a technical system architecture, information architecture, and data architecture. Establish seamless connections between these components and source systems, while focusing on data quality and automation.

To guide your sustainability decision-making, capture and analyze real-time ESG data. To do so, determine relevant data points and identify the sources of the respective raw data. Ensure that data collection and processing is secure and compliant.

Define the roles and responsibilities across the organization to manage sustainability. Identify the KPI owners as well as E2E process owners. Ensure that people have sustainability literacy.

To effectively facilitate organizational transformation and cultivate change, practice transparent communication and develop culture change programs with neuroscience-based change management strategies.

What you’ll achieve

Higher business performance

Companies with high sustainability performance achieve 3.7x higher operating margins.

Mitigation of risk

Sustainability helps OEMs by ensuring compliance (e.g., CSDDD), protecting reputation via transparency, and boosting resilience through, e.g., circular raw material use.

Increased brand attractiveness

Sustainability enhances brand appeal by demonstrating commitment to environmental and social stewardship, fostering trust, and attracting customers as well as employees.

Gaining a competitive edge

The better companies are at measuring and managing their ESG performance, the sharper their competitive edge.

New revenue streams

Sustainability offers the potential to attract and retain new customer groups or to develop completely new product and service offerings altogether.

What's trending in sustainability

Perspective

What electric drivers want

The future of mobility is electric. But many mainstream car buyers are still uncertain about electric vehicles. Here’s how automakers can tap into a broader audience and accelerate sales.

Expand

Case Study

Sustainability drives automotive market cap

How Volkswagen is driving clarity and confidence in their sustainability strategy.

Expand

Research Report

ESG reporting: From compliance to competitive advantage

Companies now face a rapidly evolving ESG regulatory landscape. We have identified nine capabilities that can move organizations beyond mere compliance and help accelerate their sustainability journey for competitive advantage.

Expand

Research Report

Only 16% of companies are on track for net zero. Is yours?

Uncover insights and actions to accelerate your journey to net zero.

Expand

Accelerate your journey

AEMP – eMobility Platform

Customizable X-industry solution for: charging experience & charging infrastructure; fleet electrification, energy flexibility platform: V2H & V2G, aggregation platform; battery lifecycle mgt.; clearing house.

N-Tier Supply Chain Navigator

Accenture's Supply Chain Decarbonization Suite (SCDS) is your client's solution to the E2E decarbonization of their supply chain.

Nature.VC

Measure nature-related dependencies and impacts across the value chain.

Supplier Sustainability Insights (SSI) Platform

Monitor the source of your raw material and mitigate risk.

Green Cloud Advisor

Helps companies design cloud solutions that reduce carbon emissions and lay a foundation for responsible innovation.

Sustainable IT Advisor

Helps clients reduce the DC emission footprint and identifies green cloud providers and locations which will provide a roadmap towards emission reduction opportunities.

Is there a future for automotive without sustainability?

Making the automotive industry and its OEMs more sustainable

10%

How sustainability is changing the automotive industry

What you can do

Understand the effects of more sustainable business practices on your business

2.6x

Derive sustainability strategy, governance and targets

Design processes to formalize and standardize sustainability activities

Create a source of truth for ESG data

Turn ESG data and information into actionable insights

Equip people to build sustainability across the organization

Foster corporate culture & change

What you’ll achieve

Higher business performance

Mitigation of risk

Increased brand attractiveness

Gaining a competitive edge

New revenue streams

Accelerate your journey

AEMP – eMobility Platform

N-Tier Supply Chain Navigator

Nature.VC

Supplier Sustainability Insights (SSI) Platform

Green Cloud Advisor

Sustainable IT Advisor

Automotive partners

Like this content?

Stay ahead of change by downloading the Accenture Foresight App.

Let there be change