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Decarbonization in the Automotive Sector: A Holistic Status Quo Analysis of Original Equipment Manufacturer Strategies and Carbon Management Activities

Author

Listed:
  • Joseph Poligkeit

    (Institute of Machine Tools and Production Technology (IWF), Sustainable Manufacturing and Life Cycle Engineering, Technische Universität Braunschweig, 38106 Braunschweig, Germany
    Volkswagen AG, Berliner Ring 2, 38440 Wolfsburg, Germany)

  • Thomas Fugger

    (Institute of Machine Tools and Production Technology (IWF), Sustainable Manufacturing and Life Cycle Engineering, Technische Universität Braunschweig, 38106 Braunschweig, Germany
    Volkswagen AG, Berliner Ring 2, 38440 Wolfsburg, Germany)

  • Christoph Herrmann

    (Institute of Machine Tools and Production Technology (IWF), Sustainable Manufacturing and Life Cycle Engineering, Technische Universität Braunschweig, 38106 Braunschweig, Germany)

Abstract

The automotive sector is a significant contributor to global carbon emissions and, as such, to climate change. However, there is currently no publicly available sector-wide insight into the extent to which Original Equipment Manufacturers (OEMs) in the automotive sector have implemented decarbonization strategies and carbon management activities. This paper addresses this issue by collecting and analyzing the implementation status of all OEMs with annual sales of more than 500,000 light-duty vehicles. For this purpose, a structured set of criteria is developed that allows conclusions to be drawn for several areas of corporate carbon management. The analysis shows a sector-wide implementation of decarbonization strategies and carbon management activities. However, significant regional differences in external communication, data transparency and methodological inconsistencies emerge. This study provides both academics and practitioners in the automotive industry with valuable insights into current reporting practices, target setting and communicated mitigation actions. On this basis, scientists can project possible greenhouse gas (GHG) emission pathways, align their research with the focus of practitioners to provide them with science-based data, and work on the methodological inconsistencies. Furthermore, the developed criteria provide a useful toolbox for the holistic analysis of other industries.

Suggested Citation

  • Joseph Poligkeit & Thomas Fugger & Christoph Herrmann, 2023. "Decarbonization in the Automotive Sector: A Holistic Status Quo Analysis of Original Equipment Manufacturer Strategies and Carbon Management Activities," Sustainability, MDPI, vol. 15(22), pages 1-21, November.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:22:p:15753-:d:1276391
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    References listed on IDEAS

    as
    1. Julian Grenz & Moritz Ostermann & Karoline Käsewieter & Felipe Cerdas & Thorsten Marten & Christoph Herrmann & Thomas Tröster, 2023. "Integrating Prospective LCA in the Development of Automotive Components," Sustainability, MDPI, vol. 15(13), pages 1-26, June.
    2. Timo Busch & Stefan Lewandowski, 2018. "Corporate Carbon and Financial Performance: A Meta‐analysis," Journal of Industrial Ecology, Yale University, vol. 22(4), pages 745-759, August.
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    1. Wang, Ning & Shang, Kai & Liu, Huiting & Duan, Yan & Qin, Dandan, 2025. "How carbon trading policy should be integrated with existing industrial policies: A case study of Chinese automotive industry," Applied Energy, Elsevier, vol. 384(C).

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