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1、Nature Positive:Role of the Automotive SectorI N S I G H T R E P O R TJ A N U A R Y 2 0 2 5In collaboration withOliver WymanImages:Getty ImagesDisclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and
2、 conclusions expressed herein are a result of a collaborative process facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.2025 World Economic Forum.All
3、 rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by any information storage and retrieval system.Contents Foreword 3Foreword 4About the Nature Positive Transitions report series 5Executive summary 6Intro
4、duction 71 Where the sectoris today 131.1 Sector overview 141.2 Progress is promising but needs to accelerate 162 Nature-related impacts and dependencies 182.1 Double materiality 192.2 Pollution 212.3 Water use 222.4 Land-use change and ecosystem disturbance 222.5 GHG emissions 243 Five priority act
5、ions 253.1 Priority action 1:Avoid and reduce impacts from operations 303.2 Priority action 2:Avoid and reduce impacts from materials 323.3 Priority action 3:Transform product offering 353.4 Priority action 4:Conserve and restore nature with 36 Indigenous Peoples and local communities3.5 Priority ac
6、tion 5:Drive cross-sector collaboration on 37 standards,transparency,infrastructure and policy 4 Get started 404.1 Align strategy with organizational maturity 414.2 A deeper look at metrics to support decision-making 434.3 Map the transition on to business functions 44Conclusion 47Appendix 48Contrib
7、utors 50Endnotes 52Nature Positive:Role of the Automotive Sector2ForewordThe automotive sector is crucial not only in helping to drive economic growth but also in enabling safe,sustainable and connected mobility on a globalscale.Today,the sector stands at a pivotal moment as it transitions rapidly f
8、rom internal combustion engine(ICE)vehicles to electric vehicles(EVs).This transformation is driven by an urgent,society-wide need to reduce greenhouse gas(GHG)emissions and combat climate change.Consistent governmental support is needed to accelerate this transition and EV adoption,including throug
9、h investment in fast-charging infrastructure.However,climate change is not the only planetary crisis our sector faces.Climate mitigation and adaptation efforts must go hand-in-hand with strategies to protect and restore nature and biodiversity.Understanding the interplay between these issues and imp
10、lementing solutions that address both areas is essential for managing trade-offs and risks.Our sectors activities both impact and depend on nature,in particular,due to the key materials we use in our operations.This report clearly defines the priority actions the automotive sector needs to take to c
11、ontribute to the nature-positive movement,meet the goals of the Kunming-Montreal Global Biodiversity Framework and halt and reverse nature loss by 2030.In the coming years,the sector needs to continue to reduce the impacts of operations and materials,become more circular,transform its product offeri
12、ng and conserve and restore nature.At Volvo Cars,alongside our ambition to become a circular business and reach net-zero GHG emissions by 2040,we are committed to avoiding and reducing our negative impacts on biodiversity throughout our value chain while making positive contributions towards nature
13、recovery.For example,we aim to reach 30%average recycled content across all vehicles produced,reuse or recycle at least 99%of all waste from our operations by 2030 and reduce water withdrawal in our operations by 50%per car by 2030,compared to 2018 levels.Volvo Cars is also proud to be the first glo
14、bal car maker to adopt the Taskforce on Nature-related Financial Disclosures(TNFD)Recommendations to enhance transparency about our progress and support nature disclosure.A transition of this scale isnt straightforward,and collaboration will be essential to success.Therefore,we call on our peers in
15、the automotive sector to join us in these efforts.Only by working together across the industry,the value chain and with customers can we overcome the challenges ahead and build a sustainable,resilient future for our planet.Jim Rowan Chief Executive Officer,VolvoCarsNature Positive:Role of the Automo
16、tive Sector January 2025Nature Positive:Role of the Automotive Sector3ForewordOn 22 July 2024,Earth recorded its hottest day on record according to the World Meteorological Organization,and August 2024 marked the 15th consecutive month of record-high global temperatures.Ocean temperatures are higher
17、 than they have ever been in modern times,causing rising sea levels,more intense storms and faster-than-usual ice loss in the Arctic in June,according to the National Snow and Ice Data Center in the US.The world is seeing unprecedented levels of biodiversity and ecosystem loss,pollution and pressure
18、 on water availability.The World Economic Forums 2020 Future of Nature and Business report estimates that more than half of the worlds gross domestic product(GDP)is moderately or highly dependent on nature and its services,meaning companies and investors cannot afford to delay actions to reverse cli
19、mate change and prevent nature loss any longer.The world is at a tipping point and only accelerated action can prevent widespread,irreversible harm.The international discourse on nature is indeed turning towards action.The 2015 Paris Agreement and the 2022 Kunming-Montreal Global Biodiversity Framew
20、ork provided governments and businesses with goals and targets,and,at the 2024 United Nations(UN)Convention on Biological Diversity(CBD COP16)in Cali,Colombia,the focus turned to implementation as stakeholders turned up in force to discuss how to put nature plans into practice.Business momentum is p
21、icking up,but industries need sectoral guidance on strategic ways forward.This is particularly true when it comes to preventing nature loss,which will involve tackling an inherently complex set of issues.The World Economic Forum,in collaboration with Oliver Wyman,has spent the past two years gatheri
22、ng data and insights through research,expert consultation and industry interviews.This work has paved the way for the Forums 2025 Nature Positive Transitions:Sectors report series.Building from those released on the chemical sector,the household and personal care products sector,and the cement and c
23、oncrete sector in 2023,these new reports focus on four sectors:mining and metals,automotive,offshore wind and ports.This initiative is part of a broader collaborative effort with Business for Nature and the World Business Council for Sustainable Development(WBCSD).Halting climate change and preventi
24、ng further nature loss are inextricably intertwined goals.Therefore,corporate and investor action to address these twin challenges must also be complementary and occur in tandem.Investing in nature is more than just good risk management.Companies that take bold steps today towards a net-zero,nature-
25、positive business model will enjoy competitive advantages,drawing on more resilient and sustainable supply chains,a positive public image,innovative green products and greater support from the financial sector.If we are to stay within safe and just Earth system boundaries and maintain a sustainable
26、planet,there is no time to delay.Nick Studer President and Chief Executive Officer,Oliver WymanAkanksha Khatri Head,Nature and Biodiversity,World Economic ForumNature Positive:Role of the Automotive Sector4About the Nature Positive Transitions report seriesNature Positive:Role of the Automotive Sect
27、oris published by the World Economic Forum in collaboration with Oliver Wyman.It is part of the World Economic Forums Nature Positive Transitions report series,which outlines the different pathways to halt and reverse nature loss by 2030 the mission at the heart of the Global Biodiversity Framework.
28、The series consists of three transitions:business sectors,cities and financial institutions.These reports highlight the relevance of nature-related risks,identify the impacts and dependencies of the economy and society on nature,and provide guidelines for business,city and financial institution lead
29、ers on key actions to accelerate the nature-positive transition.The Nature Positive Transitions report series builds on the New Nature Economy Report Series.For more information,please visit Nature Positive Transitions.Sector reports:Nature Positive:Role of the Cement and Concrete SectorNature Posit
30、ive:Role of the Household and Personal Care Products SectorNature Positive:Role of the Chemical Sector Nature Positive:Role of the Mining and Metals SectorNature Positive:Role of the Offshore Wind SectorNature Positive:Role of the Port Sector Nature Positive:Role of the Automotive Sector China Deep-
31、diveCities reports:Nature Positive:Guidelines for the Transition in CitiesNature Positive:Leaders Insights for the Transition in CitiesNature Positive:Financing the Transition in CitiesNature Positive:Cities Efforts to Advance the Transition DurbanFinance reports:Financing the Nature-Positive Transi
32、tion:Understanding the Role of Banks,Investors andInsurersNature Positive:Role of the Automotive Sector5Executive summaryThe automotive sector plays a critical role in the transition to a nature-positive world.In 2023,global vehicle production reached 94 million,1 contributing 3%of global gross dome
33、stic product(GDP),2 and the sector is projected to grow rapidly at a rate of 6-7%annually until 2030.3,4 This growth is fuelled by a growing global middle class,an expansion of emerging markets and a shift in consumer preferences towards sustainable mobility.The shift can be seen in the surge of ele
34、ctric vehicle(EV)sales from 1 million to 14 million per year between 2017 and 2023.5This progress is supported by governments across the world,with 43 countries collectively committed to accelerating the transition towards 100%zero-emissions vehicles.6 These goals have also been integrated into nati
35、onal policies in key markets,including the EU,the UK,Canada and the US,which aim to scale up zero-emissions vehicles andcircularity.7Despite these efforts,the automotive sector still contributes to biodiversity loss through pollution,water use,land-use change and greenhouse gas(GHG)emissions across
36、its entire value chain from material sourcing to vehicle manufacturing and end-of-life management.This report summarizes the sectors key impacts and dependencies on nature and sets out priority actions that corporate leaders can take to transform their businesses.These include:1.Avoid and reduce imp
37、acts from operations:Improve water stewardship,avoid and reduce pollution,strengthen biodiversity assessment,planning and management,and accelerate GHG emissions abatement.2.Avoid and reduce impacts from materials:Expand circularity,innovate to avoid and reduce material waste across the value chain,
38、engage with suppliers and source responsibly.3.Transform product offering:Transition from internal combustion engine(ICE)vehicles to battery electric vehicles(BEVs)and other alternative solutions,expand into new business models like mobility-or component-as-a-service models and influence customer be
39、haviour.4.Conserve and restore nature:Support nature conservation and restoration with Indigenous Peoples and local communities,and invest in innovative biodiversity financing mechanisms.5.Drive cross-sector collaboration:Embrace standards and transparency,educate customers,support downstream networ
40、ks,scale up transition infrastructure and call on governments to strengthen nature-relatedpolicy.These priority actions could unlock more than$960 billion worth of annual business opportunities by 2030 for companies operating across the sectors value chain,presenting significant possibilities for th
41、e automotive sector in the new nature-positiveeconomy.There is an urgent need for the automotive sector to contribute to the nature-positive transition,to reduce its impacts on nature and unlock new opportunities.Nature Positive:Role of the Automotive Sector6IntroductionMost top companies have clima
42、te targets,yetonly 12%have one for biodiversity,despite the global economys dependency on nature.Nature is at a tipping point.Today,the resources humanity uses are equivalent to that of 1.75 Earths.This means that the ecological footprint,a measure that sums up the demands for biologically productiv
43、e areas like food,timber,fibre,carbon sequestration and infrastructure,exceeds the Earths capacity by 75%.8Achieving net-zero emissions and halting biodiversity loss are highly interdependent priorities for both society and business.Climate change is one of the five key drivers of biodiversity loss,
44、9,10 and in turn,land-use change,principally agricultural commodity-driven deforestation,contributes 12-20%of global greenhouse gas(GHG)emissions.11 At the same time,efforts to tackle climate change cannot succeed without safeguarding nature.Itisestimated that 37%of the emissions reductionsrequired
45、by 2030 to keep global temperature increases under 2C will come from nature-based solutions.12 Recognizing the link between climate change and nature,standard setters are increasingly looking to align efforts,as seen in the linkages between the Science Based Targets initiative(SBTi)Forest,Land and A
46、griculture(FLAG)targets13 and the land targets from the Science Based Targets Network(SBTN).14 Efforts are also being made to integrate social and human rights perspectives to ensure that the nature transition is just,inclusive,and delivers tangible and sustainable benefits for people.In September 2
47、024,the Potsdam Institute for Climate Impact Research(PIK)published the first annual planetary health check,evaluating the status of the nine planetary boundaries the Earth system processes essential for maintaining global stability,resilience and life-support functions against safe operating limits
48、.Overall,six out of nine planetary boundaries,such as land system change,freshwater change,and biosphere integrity,have already breached safe levels15(see Figure 1).of the emissions reductions required by 2030 to keep global temperature increases under 2C will come from nature-based solutions.7Natur
49、e Positive:Role of the Automotive SectorPlanetary boundaries health checkFIGURE 1Planetary boundary processesClimate changeCO2 concentrationIncrease in atmospheric aerosol loadingOcean acidificationFreshwater changegreen waterFreshwater changeblue waterStratospheric O-zone depletionSafe operating sp
50、aceIncreasingriskHigh-risk zonePlanetary boundaryHigh-risk lineStatus and trendLand system changeClimate changeradiative forcingModification of biogeochemical flowsphosphorus cycleModification of biogeochemical flowsnitrogen cycleChange in biosphere integrityfunctional integrityChange in biosphere i
51、ntegritygenetic diversityIntroduction of novel entitiesSource:Caesar,L.,Sakschewski,B.et al.(2024).Planetary Health Check:A Scientific Assessment of the State of the Planet.Nature Positive:Role of the Automotive Sector8Why nature matters forbusinessesThe importance of nature for businesses and finan
52、cial institutions is growing as the evidence for nature-related risks rises.In the World Economic Forums Global Risks Report 2025,16 five out of the top 10 risks over the next decade are environment related:extreme weather events,biodiversity loss and ecosystem collapse,critical change to Earth syst
53、ems,natural resource shortages and pollution.In parallel,the calls for rapid change are getting stronger and more frequent,coming from policy-makers,regulators,investors,companies,consumers and citizens(see Figure 2).Companies that anticipate the risks of nature loss can minimize disruption from inc
54、oming policy and regulatory requirements,proactively manage nature-related physical,transition and systemic risks,17 including dependencies on ecosystem services and assets,and benefit from early nature-relatedopportunities.Key nature-related dynamics impacting businessesFIGURE 2 BusinessesGlobal Bi
55、odiversity FrameworkGuidance and standards In total,196 parties agreed on the landmark Kunming-Montreal Global Biodiversity Framework in December 2022.Target 15 of the framework explicitly calls for mandatory assessment and disclosure and for businesses to reduce their negative impacts on nature.Tas
56、kforce on Nature-related Financial Disclosures(TNFD)issued sector-specific guidance for 8 sectors and financial institutions.International Sustainability Standards Board(ISSB)incorporated nature and biodiversity requirements.EUs European Sustainability Reporting Standards(ESRS)started in 2024.Scienc
57、e Based Targets for Nature(SBTN)released updated target-setting guidance.Customers and employees Recent studies show 85%of consumers indicate that they have shifted their purchasing behaviour to be more sustainable in the past five years.The Union for Ethical BioTrade(UEBT)Biodiversity Barometer has
58、 shown consistent growth in biodiversity awareness among consumers over the past decade.In total,177 financial institutions with22.1 trillion in assets under managementsigned the Finance for Biodiversity Pledge.Nature Action 100 harnesses investor influence on businesses.Financial institutionsSource
59、:Convention on Biological Diversity.(2022).Kunming-Montreal Global Biodiversity Framework;Business for Nature.(2023).A wake-up call for business:Target 15 commits governments to require nature-related disclosure from large companies and financial institutions;Taskforce on Nature-related Financial Di
60、sclosures(TNFD);Reuters.(2022,14 December).Global sustainability rules body steps up focus on biodiversity;European Financial Reporting Advisory Group(EFRAG).EU Sustainability Reporting Standards(ESRS);Science Based Targets Network(SBTN).(n.d.).For companies;Nature Action 100;Finance for Biodiversit
61、y Foundation;Union for Ethical BioTrade(UEBT).Biodiversity Barometer.9Nature Positive:Role of the Automotive SectorGlobal Biodiversity FrameworkThe agreement of the Kunming-Montreal Global Biodiversity Framework18 in December 2022 set the ambition to halt and reverse biodiversity loss,calling for a
62、collective effort from all sections of society on the four goals and 23 targets by 2030.Guidance and standards Many regulators will soon require mandatory nature-related disclosure from companies,with regulations like the European Sustainability Reporting Standards(ESRS)19 under the EUs Corporate Su
63、stainability Reporting Directive(EU CSRD)and the EU Taxonomy for Sustainable Activities20 pushing businesses to disclose their impact on nature and their exposure to nature and biodiversity loss.Standards are also being adopted in countries like India21 and China,22 requiring companies to disclose m
64、aterial sustainability information.Companies are encouraged to start collecting data and building internal capacity in alignment with voluntary disclosure frameworks like the Taskforce on Nature-related Financial Disclosures(TNFD),23 which has seen at least 502 organizations,including 129 financial
65、institutions,commit to getting started with voluntary reporting of their nature-related issues.24Financial institutionsFinancial institutions are also recognizing the risks associated with nature,for example,36%of Dutch financial institutions assets were found to be highly dependent on nature,25 and
66、 starting to take action.In the past three years,177 institutions with 22trillion in assets under management signed the Finance for Biodiversity Pledge,and institutional investors are convening through the Nature Action 100 programme to engage with companies and policy-makers on nature.26The nature-
67、positive transition will unlock new business opportunities for financial institutions.Innovative nature financing mechanisms,including biodiversity credits,impact investments and blended finance mechanisms,have seen significant growth in the past years,including 10%growth between 2022 and 2023.27 Go
68、vernments are developing the market infrastructure to mobilize private finance for nature conservation and restoration.For example,in 2023,the UK government introduced the Biodiversity Net Gain(BNG)legislation,28 mandating that all new development projects achieve a 10%net gain in biodiversity,and t
69、he Australian government is in the process of establishing a Nature Repair Market29 to enable individuals and businesses to voluntarily invest in nature repair projects across Australian land,waters,or a combination of both.Financial institutions can start taking action by building internal capacity
70、 to act on nature,developing financing policies,strategies and transition plans that favour nature(including sector-,location-or asset class-specific policies where appropriate),embedding nature in risk management systems,developing robust nature-related reporting systems,and engaging with high natu
71、re-impact and high nature-risk businesses.Consumers and employeesSimilarly,wider society and other stakeholders,such as employees and consumers,are raising their expectations for corporate action to protect nature and biodiversity.In the Union for Ethical BioTrades 2022 Biodiversity Barometer,biodiv
72、ersity loss was the second most urgent environmental concern for consumers after climate change.In countries such as Brazil and China,the concern comes out on top,with 54%of consumers wanting information on a products impact on biodiversity.A survey by Simon-Kucher&Partners in 2021 showed that 85%of
73、 consumers have made changes to make their purchasing behaviour more sustainable in the past five years.30 Additionally,employees are elevating their expectations regarding their employers commitment to protecting nature and biodiversity.For example,a 2022 global survey by Deloitte31 found that prot
74、ecting the environment remains a top priority for Gen Zs and millennials,who want to see their employers prioritize visible actions that enable employees to get directly involved.A total of 64%of Gen Zs said they would pay more to purchase an environmentally sustainable product.Setting credible natu
75、re strategies Despite the increased momentum on nature over recent years,not enough is being done.While 78%of Fortune Global 500 companies have climate change targets,only 26%have freshwater consumption targets,and just 12%have targets for biodiversity loss.32 Only 5%of companies have assessed their
76、 impacts on nature,with less than 1%understanding their dependencies.33 Companies can contribute to“Nature Positive”by establishing credible nature strategies,where“Nature Positive”represents a“global societal goal to halt and reverse nature loss by 2030 on a 2020 baseline,and achieve full recovery
77、by 2050”.34 Individual companies,financial institutions and investors can contribute to this shared goal by adopting nature-positive strategies across their spheres of control and influence,including at sites of high-biodiversity importance,in their direct operations as well as across their value ch
78、ains(seeFigure 3).In the past three years,177 institutions with 22 trillion in assets under management signed the Finance for Biodiversity Pledge.Nature Positive:Role of the Automotive Sector10Spheres of control and influenceFIGURE 3Sphere of controlSphere of influenceSiteProductCorporateValue chain
79、Value chain-adjacent areasSystemsDirectoperationsUpstreamDownstreamSource:Adapted from Science Based Targets Network(SBTN).(2020).Science-Based Targets for Nature:Initial Guidance for Business,2020.A credible corporate nature strategy should be built on four high-level steps:assess,commit,transform
80、and disclose35(see Figure 4).Businesses can and should act now to:Assess:Conduct an initial materiality assessment to prioritize efforts;identify,measure,value and prioritize impacts and dependencies on nature;assess risks and opportunities;and consider climate and people within nature assessments.C
81、ommit:Define ambition and goals,and set transparent,time-bound,specific,science-based targets to put companies on the right track towards operating within the Earths limits.Transform:Avoid and reduce negative impacts;restore and regenerate;shift business strategy and models;collaborate,both along va
82、lue chains and at a landscape,seascape and river basin level;advocate for ambitious policies and initiatives;and embed nature within corporate governance.Disclose:Disclose material nature-related information across all three high-level actions above;seek out independent validation and verification t
83、o enhance the credibility of actions;and align reporting with major reporting standards such as TNFD,International Sustainability Standards Board(ISSB)or the EUs CSRD recommendations.Momentum is building.In May 2023,17 companies started a target validation pilot for the SBTN methods.36 For more deta
84、ils,companies can refer to the Nature Strategy Handbook,a practical guide to support all businesses in developing anaturestrategy.Nature Positive:Role of the Automotive Sector11ACT-D high-level business actions on natureFIGURE 4AssessMeasure,value and prioritize your impacts and dependencies on natu
85、re to ensure you are acting on the most material ones.CommitSet science-based targets to put your company on the right track towards operating within the Earths limits.TransformAvoid and reduce negative impacts,restore and regenerate,collaborate across land and seascapes,shift business strategy and
86、models,embed nature in governance and advocate for policy ambition.DiscloseCommitAssessTransformHigh-level business actions on natureDiscloseDiscloseThe need for a sectoral approach As nature impacts and dependencies differ significantly across real economy sectors,sector-specific analyses and guida
87、nce can help companies understand their relationship with nature and the actions they can take to accelerate the transition to a nature-positive future.To inform sectoral approaches,the World Economic Forum,alongside Business for Nature and the World Business Council for Sustainable Development(WBCS
88、D),produced guidance on 12 global sectors as part of the initial phase of the Sector Actions Towards a Nature-Positive Future initiative.For each sector,the guidance outlines the priority actions companies should take to transform their operations and value chains to make a meaningful contribution t
89、owards the Global Biodiversity Framework and help halt and reverse nature loss by 2030.In the second phase,the World Economic Forum has conducted analysis on four additional sectors:mining and metals,automotive,offshore wind and ports.This report,published in collaboration with Oliver Wyman,identifi
90、es and makes the business case for sector-specific priority actions in the automotive sector.Note:Disclose material nature-related information across all three high-level actions above.Source:Business for Nature.(n.d.).High-level Business Actions on Nature.Nature Positive:Role of the Automotive Sect
91、or12Where the sectoris today1As the sector comes under growing scrutiny for its impacts on nature,companies need to transform business models and publicly report material nature-related information.Nature Positive:Role of the Automotive Sector13In recent decades,the automotive sector has grown in bo
92、th size and variety.Today,travellers and cargo across the globe travel by road in a diverse range of cars,light-duty trucks and motorcycles,many of which are now powered by electricity with the advent of electric vehicles(EVs)37 and other alternative solutions.In 2023,the global automotive manufactu
93、ring market was worth over$2.6 trillion,38 and the sector contributes approximately 3%to global GDP output.39 In the same year,the number of vehicles produced was 94 million,40 with half of production concentrated in Asia(in particular,approximately 35%in China,and around 15%in Japan and South Korea
94、),around 20%in the EU and around 15%in North America.41Following recent supply chain disruptions caused by the COVID-19 pandemic,macro-economic and geopolitical uncertainty,and high commodity and energy prices,42,43 the automotive industry recovered and grew at a rate of 3%in 2023,in line with pre-2
95、020 levels.44,45 The sector is projected to experience strong growth of 6-7%per year until 2030,46,47 driven by increasing demand for sustainable mobility options,a growing global middle class,expansion of emerging markets and shifting consumer preferences towards larger cars such as sport utility v
96、ehicles(SUVs).In particular,the shift towards sustainable mobility has transformed the market for automotive vehicles.EV sales grew from 1 million to 14 million per year between 2017 and 2023,and EVs accounted for 18%of total car sales in 2023.48 Of all the electric cars on the road today,over half
97、are in China,and by 2023,the country had already exceeded its 2025 target for new EV sales.After China,the majority of other electric cars are in the EU(30%)and the US(12%).Sales of electric light commercial vehicles(LCVs)are also continuing to increase,nearly doubling in 2022 relative to 2021.At th
98、e global level,however,the LCV sales share still only represents 3.6%of sales.49For the world to reach net zero by 2050 under the International Energy Agencys(IEA)Net-Zero Emissions by 2050 Scenario,EVs will need to grow at an annual rate of 40%,reaching 380 million EVs on the road by 2030 and accou
99、nting for 60%of all vehicle sales.While the rise of EVs is critical to ensuring the success of the energy transition and combatting air pollution,it can still have unintended consequences,including its own inherent resource demands and upstream and downstream environmental impacts.50 Notably,this sh
100、ift is driving rapidly increasing demand for critical minerals for batteries,with mineral requirements for clean energy technologies projected to increase by four to six times by 2040 and EVs and battery storage accounting for 25-45%of demand.51 Indeed,in 2022,about 60%of lithium,30%of cobalt and 10
101、%of nickel demand was for EV batteries.Lithium demand exceeded supply despite global production nearly doubling between 2017 and 2022.52Supply security is an increasing concern.This has resulted in the Group of Seven(G7)countries adopting a Plan for Critical Minerals Security and pledging$13 billion
102、 in support in April 2023.The Group of Twenty(G20)additionally emphasized the need for diversified,sustainable and responsible supply chains for the energy transition.53 1.1 Sector overviewFor the world to reach net zero by 2050,electric vehicles are required to account for 60%of all vehicle sales b
103、y 2030.Nature Positive:Role of the Automotive Sector14In a bid to improve supply security by reducing dependency on imports and develop local industries,countries are also increasingly shifting towards resource nationalism.54 For example,the EU aims to relocate 40%of the refining and processing of r
104、aw minerals within the EU and increase battery manufacturing as part of the Critical Raw Materials Act,55 and Net-Zero Industry Act.56 This may not necessarily result in environmental benefits,however,depending on the type of ore that is imported.Indeed,World Wide Fund for Nature(WWF)analysis shows
105、that,depending on the origin and type of raw materials,relocating lithium and nickel refining processes can either increase or decrease GHG emissions by a factor of five.57Alongside EVs,the Intergovernmental Panel on Climate Changes(IPCC)Sixth Assessment Report(AR6)report states there are also addit
106、ional pathways to decarbonizing the automotive industry,including flexible-fuel hybrid EVs(FFV-HEVs),sustainable biofuels(in the short to medium term),58,59,60 low emissions hydrogen and derivatives(including synthetic fuels).61Like other sectors,the automotive sector is intrinsically interlinked wi
107、th nature.The sector depends on environmental assets and ecosystem services(such as freshwater supply and rainfall regulation,global climate regulation,soil and sediment retention,flood protection and metal,mineral,energy and biomass provisioning)62 to function and grow across the value chain.Exampl
108、es of relevant nature services include supply of water for cooling during manufacturing processes and rubber biomass for tyres.The sector also contributes to drivers of nature loss,notably pollution including from end-of-life(EOL)vehicles water use,land-use change and ecosystem disturbance,and GHG e
109、missions across the value chain.Indeed:8%of mining-related deforestation is attributable to the motor vehicle sector(the second largest contributor after the constructionsector).63 Life cycle analysis indicates that the production of cars requires over 400,000 litres of water across the value chain,
110、64,65 equivalent to over 10 years of household water supply for the average person in Europe.66 Overall,road transport was responsible for 45%of global oil demand67 and 16%of global GHG emissions in 2022,with cars and vans accounting for 10%of emissions.68The Science-based Targets Network(SBTN)have
111、classified several key materials required as inputs to the sector(including steel,aluminium,battery materials,rubber and leather)as“high-impact commodities”for nature.69To address its impacts and dependencies on nature,the automotive sector will face significant challenges due to the complexity of c
112、ompanies global supply chains.On average,an automotive manufacturer may have 18,000 suppliers across the full value chain,70 with around 20,000 parts in a typical passenger car.71 Manufacturing cycles are long and complex,with the process typically taking four to six years from initial concept to ma
113、rket.It is,therefore,critical that companies plan ahead to account for long lead times.This report aims to support businesses in the sector to incorporate nature into their forward-looking businessstrategies.Definition of the automotive sector BOX 1The scope of this report is defined by the Sustaina
114、bility Accounting Standards Board(SASB)Sustainable Industry Classification System(SICS),72 and includes“Transportation Auto Parts”and“Transportation Automobiles”.This encompasses automotive parts production by tiers 1,2 and 3,all the way to tier n suppliers,including battery production and technolog
115、y development,and midstream vehicle manufacturing by original equipment manufacturers(OEMs)of light-duty passenger vehicles and trucks,2/3-wheelers and compact tractors.In addition,this report will consider the full value chain for automobiles,including industries that provide inputs to automotive p
116、arts manufacturers or original equipment manufacturers(OEMs),downstream product distribution and aftersales,vehicle use and end-of-life(EOL)management.Raw material extraction within the mining and metals sector is considered a key driver of the automotive sectors nature footprint and is covered in m
117、ore detail in the Forums Nature Positive:Role of the Mining and Metals Sector report.This report focuses directly on the automotive sector.It is,however,important to consider these recommendations within the broader context of the mobility system transition,alongside other factors such as the role o
118、f various vehicle modalities(for example,public transport)and infrastructuretransformation.The automotive sector depends on environmental assets and ecosystem services to function and grow across the value chain.Nature Positive:Role of the Automotive Sector15Simplified value chain of the automotive
119、sector FIGURE 5End-of-lifeDismantling,remanufacturing and recyclingAftersales*Maintenance,insurance,and other servicesB2B sales*Fleet customers,leasing and other salesUse phaseB2C sales*Retail sales and logisticsRecyclingRemanufacturingRe-useUpstreamMidstream(direct operations)DownstreamInorganic an
120、d organic feedstock and raw material supply including metals and minerals,chemicals and agricultural products(e.g.leather,rubber)Energy and water supplyMachinery and transport equipment supplyTier 2,3 and n suppliersManufacturing of materials and auto part componentsTier 1 suppliers Manufacturing of
121、 auto parts Automotive OEMsManufacturing(fabrication,painting,thin-coating)and assembly of vehicles*Sales and aftersales may be conducted by OEMs(midstream)or by independent retailers/service providers(downstream).Globally,significant progress has been made to provide policy and regulatory support f
122、or the transition from internal combustion engine(ICE)vehicles to zero-emissions vehicles(ZEVs),and 43 governments pledged to accelerate the transition to 100%zero-emission cars and vans.73These goals have been integrated into national policy in several key markets.For example,the EU adopted the Fit
123、 for 55”proposal in 2023 to ban sales of ICE cars and vans by 2035,and Canada and the UK have also adopted zero-emissions vehicle regulations that aim to phase out sales of ICE vehicles by 2035.Iceland,Austria,the Netherlands,Ukraine and Israel have committed to 2030 phase-outs,while Norway is even
124、more ambitious,aiming for 100%ZEV sales by 2025.In 2024,the US adopted new GHG emissions standards that,according to US Environmental Protection Agency(EPA)estimates,will lead to EVs representing 35-56%of new light-duty vehicle sales by 2032.In many countries,supporting ZEVs is not only seen as a ke
125、y part of the energy transition,but also as a way to reduce energy imports and air pollution,improving health outcomes for citizens.This is particularly relevant for fast-growing developing countries,such as China,Indonesia,Viet Nam,Ghana,Pakistan and others,that are implementing regulations,tax ben
126、efits and strategic targets to support ZEV sales.Beyond GHG emissions,much of the focus of policy and regulation to date has been on circularity,with a view to securing critical minerals supply.As momentum following the United Nations Convention on Biodiversitys(CBD)15th and 16th Conference of the P
127、arties(COP 15 and COP 16)drives countries to submit updated national biodiversity strategies and action plans(NBSAPs),society as a whole can expect to see further regulation supporting the goals of the Global Biodiversity Framework in coming years.For example,this regulation may focus on enhancing r
128、estoration 1.2 Progress is promising but needs to accelerate 43governmentspledged to accelerate the transition to 100%zero-emission carsandvans.Nature Positive:Role of the Automotive Sector16(Target 2),expanding conservation areas(Target 3),reducing pollution(Target 7)and disclosing impacts and depe
129、ndencies(Target 15).With growing expectations from financial institutions,employees and customers,as well as anticipated new policy and regulation worldwide,the business case for action on nature has never been stronger.Corporate leaders should start to assess,commit,transform and disclose as per th
130、e ACT-D framework in a more systematic way.As noted in the Introduction,companies need to:identify,measure,value and prioritize their nature-related impacts and dependencies across their value chains to ensure they act on the most material ones;set transparent,time-bound,specific,science-based targe
131、ts when material;take actions to transform their businesses;and track performance to publicly disclose material nature-related information.For more information on tools and guidance available for the ACT-D set of high-level actions,see Table 1.A range of other activities will also be needed to suppo
132、rt the stages of ACT-D,including agreeing on definitions,determining materiality thresholds,mapping assets and operations,gathering information on existing nature-related activities,making the case for nature action internally within the organization(beyond disclosure),and establishing the vision of
133、 success.Selected tools and guidance available for ACT-D high-level actionsTABLE 1AssessConsult the locate-evaluate-assess-prepare(LEAP)approach from TNFD.Follow the technical guidance to assess74 and prioritize75 from SBTN.CommitFollow the approach the International Union for Conservation of Nature
134、(IUCN)is developing to measure nature-positive76 and set targets.Set science-based targets,taking inspiration from the technical guidance provided for freshwater and land by SBTN.77For climate,refer to the guidance from the Science Based Targets initiative(SBTi).TransformTake inspiration from the Wo
135、rld Economic Forums Nature Positive Transitions:Sectors report series;78 invest resources and commit management to deliver against clear targets.79DiscloseConsult the final recommendations80 from TNFD for nature-related disclosures.For climate,refer to the ISSB guidance on disclosure of sustainabili
136、ty-related financial information and climate-related disclosures.81 Use CDPs disclosure platform,which includes guidance on climate change,forests,water security,biodiversity and plastics.82 Note:This table is non-exhaustive.For more tools and guidance,see High-level Business Actions on Nature and T
137、he Nature Strategy Handbook.17Nature Positive:Role of the Automotive SectorNature-related impacts and dependencies2Without action,nature-related risks will escalate,threatening business models fora sector highly dependent on nature.Nature Positive:Role of the Automotive Sector18The principle of“doub
138、le materiality”,a concept at the heart of the EUs CSRD,defines a companys impact on the environment and its dependencies on it as highly interdependent(see Figure 6).In other words,the economic activities of businesses have impacts on both the environment and society(known as impact materiality),whi
139、le concurrently,businesses also encounter risks(and opportunities)arising from their dependencies on the environment and society(known as financial materiality).2.1 Double materiality Double materiality FIGURE 6Double materialityTraditional materialityBusiness impacts on nature/impact materialityDep
140、endencies/financial materialityExamples of financial materialityPressure on water availability and decline in quality affect company profitabilitySoil erosion and degradation lead to decreases in agricultural yields for agricultural food companiesDirty beaches and coastal areas cause drop in tourism
141、 traffic and revenues Examples of impact materialityCompany activities affect water supply and qualityUnsustainable agricultural practices lead to decrease in soil qualityIrresponsible travel and tourism cause pollution and over-exploitation of natural resources Business dependencies on nature/finan
142、cial materialitySource:World Economic Forum.Definition of double materiality sourced from:Deloitte.(2023).Double Materiality:5 challenging key aspects to consider.The automotive sector and its value chain are highly dependent on a number of environmental assets and ecosystem services,including:83 Fr
143、eshwater supply and rainfall regulation:The sector depends on freshwater as an important resource,including for input industry processes(such as chemical cracking)and automotive manufacturing processes(such as for pretreatment and cleaning of the body shell in paint shops,cooling in the manufacturin
144、g process and leak testing).Climate regulation,soil and sediment retention,and flood protection:Global climate regulation protects upstream industry operations in particular,those sensitive to increased temperatures.For both upstream operations and midstream automotive manufacturing,mass stabilizati
145、on and erosion control provide protection from landslides and other natural hazards.Finally,green infrastructure84 and water flow regulation provide flood protection across the value chain.For example,in 2023,a flood event in Slovenia caused 30-50 million in damage to KLS Ljubno,an automotive parts
146、manufacturer,85 resulting in supply delays to OEMs such as Volkswagen Group and Skoda.This significantly affected production,for instance resulting in a loss of 150,000 vehicles Nature Positive:Role of the Automotive Sector19at Volkswagen Group and supply chain impacts for the industry in the hundre
147、ds of millions ofeuros.86,87 Metal,mineral and energy resources:Provision of metal and mineral resources for input materials and a stable supply of energy to operate are crucial.Energy is currently sourced from both renewable and non-renewable sources,with an increasing shift towards renewable sourc
148、es as a decarbonization lever.Cultivated biological resources:The sector relies on the provision of rubber for tyres,crops for the production of fibres and dyes,and livestock farming for leather.For example,rubber shortages in recent years due to flooding and leaf disease have put pressure on tyre p
149、roduction supply chains.88According to the World Economic Forums report Nature Risk Rising,more than 40%of the gross value-added across automotive companies direct operations and supply chains is moderately dependent on nature.These dependencies can materialize as risks to businesses if not properly
150、 assessed and managed and if action is not taken to safeguard nature.This strengthens the business case for investing in protecting and restoring nature to build sustainable,responsible and resilient supply chains and ensure the long-term viability of business models.However,the automotive sector co
151、ntinues to impact nature,contributing to drivers of biodiversity loss such as pollution,water use,land-use change and ecosystem disturbance,and GHG emissions.89 Wherever possible,automotive companies should avoid then reduce these drivers of nature loss in their operations and value chains,alongside
152、 related negative social impacts on communities at and around project sites,to mitigate risks and unlock nature-related opportunities across the value chain.Company-specific impacts and dependencies vary by business model and position within the value chain,and companies should conduct individual as
153、sessments to understand their own unique interfaces with nature(see Box 2).For OEMs specifically,the shift in the automotive sector towards alternative business models,notably from ICE vehicles to EVs,will support the reduction of GHG emissions but may exacerbate other nature impacts.Automotive comp
154、anies will need to perform a life cycle assessment of nature impacts to evaluate trade-offs in decision-making.Top four drivers of nature loss in the value chain of the automotive sectorTABLE 2UpstreamMidstream (direct operations)DownstreamPollutionWater useLand-use change and ecosystem disturbanceG
155、HG emissionsPressure materiality rating(ENCORE):High Medium*Manually adjusted based on expert feedback.Note:See methodology in the Appendix.While GHG emissions are one of the highest materiality drivers of nature loss for the automotive sector,this is included last in this document given the automot
156、ive sectors net-zero transition has been covered extensively elsewhere.More than 40%of the gross value-added across automotive companies direct operations and supply chains is moderately dependent onnature.Conduct company-specific assessment of impacts and dependencies BOX 2The analysis of impacts a
157、nd dependencies presented in Chapter 2 is a sector-average analysis for companies in the automotive sector,but company-specific impacts and dependencies will vary according to their activities,supply chains and operational locations.Companies will need to conduct assessments to locate their interfac
158、e with nature and evaluate their impacts and dependencies using company-specific operational and supply chain information.TNFDs LEAP approach,90 as well as the SBTNs step 1(assess)91 and step 2(prioritize)92 are useful frameworks to guide companies through their ownassessments.The full methodology a
159、nd results of this sector-average assessment can be found in the Appendix.Nature Positive:Role of the Automotive Sector202.2 PollutionPollution occurs across all stages of the automotive value chain.93 Upstream production processes can lead to land,freshwater and ocean pollution,including through th
160、e release of chemicals that are harmful at high concentrations,persistent or toxic materials,highly saline water and run-off from livestock farming for leather.For example,the automotive industry uses 12%of global steel94(with steel making up 50-60%of the average vehicle)95,96,97 and steel productio
161、n generates 145 billion tons of wastewater per year.98 Furthermore,upstream mining operations,energy,chemicals and fibre production can also release atmospheric pollutants,including dust,solvents and sulphur dioxide,which contribute to acid rain.Waste is also produced from non-product outputs,includ
162、ing ore heaps and tailings,resins,sludges,glass,metal and polymers.In direct operations,the automotive manufacturing process itself can contribute to land,freshwater and ocean pollution,with metals and metal compounds making up 71%of the chemical waste managed by the automotive industry.99 Other pol
163、lutants include atmospheric emissions from manufacturing processes and noise pollution.Waste is similarly produced from non-product outputs,including glass,metal,polymers,cardboard,rubber and leather.For example,750,000 tonnes of waste was generated during car production in the EU in 2022.100Finally
164、,the downstream use of vehicles can have material impacts on both the environment and human health.Downstream,land,freshwater and ocean pollutants include particulate matter and chemicals,such as microplastics from tyre wear,brake wear,dust resuspension,motor oil leaks and washer fluids.Indeed,a 202
165、0 study by the Pew Charitable Trusts found that 78%of microplastic leakage into the ocean(approximately 1 million tons)was caused by tyre dust in 2016.101 Reducing mileage,better water sedimentation disposal and other known solutions can all help address this challenge.The study found,however,that w
166、ithout novel innovation for tyre design and manufacturing,tyre dust will remain the largest contributor of microplastic leakage into the ocean.Microplastics are not just a problem in the ocean.The impact of microplastics in terrestrial environments is being studied,with indications that they can cau
167、se impacts on soil health and nutrient cycling,alongside other processes.102 Likewise,fluid pollutants such as motor oil also flow into waterways,where 1 gallon of used oil can contaminate 1 million gallons of water.103 Non-GHG air pollution(including pollutants such as nitrogen dioxide,particulate
168、matter,hydrocarbons and carbon monoxide)is also a material impact from downstream vehicle use.Road transport was the largest source of nitrogen oxides in the EU in 2020 and was responsible for 37%of emissions,104 with 52,000 deaths attributed to nitrogen dioxide in the EU in 2021.105 Globally,roadsi
169、de traffic was responsible for 25%of particulate matter(PM2.5)pollution in urban areas,with the majority estimated to be non-exhaust matter.Exposure to ambient particulate matter has been ranked as the seventh most important risk factor for mortality,causing an estimated 4.2 million premature deaths
170、 globally in2015.106A 2020 study by the Pew Charitable Trusts found that 78%of microplastic leakage into the ocean(approximately 1 million tons)was caused by tyre dust in 2016.78%21Nature Positive:Role of the Automotive SectorOther forms of pollution caused by the use phase of vehicles include noise
171、 pollution and waste.The improper disposal of EOL vehicles generates 7-8million tons of waste globally every year.107 Soil contamination from lead battery manufacturing and recycling is of particular concern in many developing African countries lacking adequate infrastructure for proper disposal and
172、 treatment of vehicles,which are often imported from regions like the US and EU.As developed markets transition away from ICE vehicles,care must be taken to avoid burdening less developed markets with theirdisposal.108Many countries have implemented policies and regulations that place controls on po
173、llution levels in the automotive sector.For manufacturing,regulations are strongest in the EU,where the Industrial Emissions Directive requires companies to implement the best available techniques(BAT)to cut the use and impacts of hazardous chemicals.109 For downstream pollution,the US Environmental
174、 Protection Agency strengthened standards on air pollutant emissions for light-and medium-duty vehicles in 2024,110 and the EU revised the Ambient Air Quality Directive in 2024 to impose stricter limits on pollutants.111 Countries have also imposed regulations on automotive noise levels.For example,
175、China adopted new regulations in 2021,112 and in the EU there are also requirements for noise labelling in dealerships.113More still needs to be done,however.Both regulators and automotive companies,in partnership with other stakeholders,need to continue to advance action to mitigate pollution and i
176、ts environmental and social impacts across the value chain,and avoid the longer-term liability ofEOL vehicle waste.The automotive sector relies heavily on water for production.Indeed,30 million m3(cubic metres)of water were used in vehicle manufacturing in the EU in 2022,114 and the sector has a CDP
177、 Water Watch impact rating of“very high”(the second highest category).115 The midstream manufacturing of each vehicle requires 5,000 litres of water,116 however,life cycle analysis indicates that car production requires 400,000-450,000 litres of water(mainly for metals sourcing and electrical compon
178、ent manufacturing),which indicates that 99%of water is consumed upstream.117 This total is equivalent to over 10 years of household water supply for the average person in Europe.118Upstream,water is critical for mining operations and energy,chemicals,fibre,rubber and tyre production.Its also essenti
179、al for livestock farming for leather,and forest products for packaging.Where operations lie in arid places,impacts can be magnified locally.For example,the World Resources Institute found that 16%of critical mineral mines,deposits and districts are located in highly water-stressed areas,and in these
180、 locations,at least 40%of water supply is required to meet existing demand each year.119In automotive manufacturing operations,some of the primary uses of water include machinery and part cooling,paint shops,120 leak testing,and pretreatment and cleaning of the body shell.Similarly,impacts can be ma
181、gnified where operations lie in arid places.For example,in 2022,23%of water used in Volvo Cars own operations was drawn from areas with high or very high water stress across Europe,North America and Asia.121 2.3 Water use2.4 Land-use change and ecosystem disturbanceAcross the value chain,from raw ma
182、terials to EOL vehicles,land-use change is primarily driven by upstream input industry activities.In particular,the production of high-impact commodities such as metals,rubber and leather,pulp and paper for packaging,and energy supply,can result in:Land clearance and ecosystem fragmentation Soil deg
183、radation,erosion and compaction,and increasing flows of sediment into nearby rivers Increase in non-natural fires and landslides from the use of heavy machinery and explosives Disruption or diversion of surface water regimes and groundwater systemsImpacts are highly material-specific and clearly att
184、ributable to the automotive sector.For example:For metals,8%of mining-related deforestation is attributable to the motor vehicle sector(the second largest contributor after the construction sector).122 Approximately 70%of natural rubber is used to produce tyres.123 Meanwhile,90%of global rubber is p
185、roduced in South-East Asia,where Car production requires 400,000-450,000 litres of water(mainly for metals sourcing and electrical component manufacturing).Nature Positive:Role of the Automotive Sector22mature plantations cover 14.2 million hectares(ha)of land.Remote sensing estimates suggest that m
186、ore than 4 million ha of forest there have been converted for rubber cultivation since 1993,an area roughly the size of Switzerland.Of this,more than 1 million ha are in Key Biodiversity Areas.124 In addition,rubber demand is expected to grow by nearly 20%from 2019 to 2027,from$28.65 billion to$33.8
187、7 billion.125 For leather,126 a fifth of all bovine leather produced globally from cattle for the meat industry is estimated to go into cars,including over 40%of all leather produced in Brazil,where cattle ranching is the number one direct driver of deforestation.Automotive manufacturers can engage
188、with meat producers to support deforestation-free cattle supplychains.For upstream inputs from the mining,agriculture or forestry sectors,the area of influence of projects is generally larger than the direct physical footprint due to both indirect and cumulative impacts.In particular,infrastructure
189、development can attract human populations to remote locations,causing new threats or exacerbating pre-existing threats,such as over-exploitation(e.g.hunting,fishing,logging),introduction of invasive or exotic species(e.g.through inadvertent introduction by humans)and habitat loss for other land uses
190、(e.g.agriculturalexpansion).127,128,129Activities can also violate the rights of Indigenous Peoples as well as of local communities,for example,where operations affect areas of high ecological,cultural or community significance.These impacts can be more pronounced when local communities and rightsho
191、lders are not meaningfully engaged,when Indigenous Peoples rights to self-determination and free,prior and informed consent(FPIC)are not respected,130 or when robust human rights due diligence activities are not undertaken to avoid causing or contributing to negative human rights impacts.Alongside u
192、pstream impacts,direct operations and downstream activities can also lead to land-use change and ecosystem disturbance.For example,this can occur when land is cleared to make way for manufacturing sites,warehouses and dealerships.Likewise,the increase in the size of average vehicles is leading to in
193、creased size and quantity of vehicle infrastructure(including roads and new car parks).Some companies have started to take action to identify and eliminate deforestation in supply chains.For example,Mercedes-Benz sources a small share of the leather in its supply chain from Brazil(approximately 5%).
194、Of this,more than half of the hides are sourced from closed-cycle farms,which allows complete traceability back to the cattles birthfarm.In addition,work is being done to create greater transparency for the other hides.To this end,Mercedes-Benz has signed a memorandum of understanding with a local s
195、upplier and an international non-governmental organization(NGO),committing to working together to pursue deforestation-free supply chains for leather.The collaboration includes the implementation and verification of tracking systems for the traceability of refined leather back to its origin.For this
196、 purpose,the origin of the hides is documented and checked for violations using satellite images and other data.This procedure is also monitored by third parties.Skins identified as critical are excluded from further processing into products for Mercedes-Benz,with the aim being to gradually increase
197、 the proportion of these auditedhides.Source:Mercedes-Benz Group.(n.d.).Against deforestation.https:/group.mercedes- STUDY 1Managing leather-related deforestation risk in automotive supply chainsNature Positive:Role of the Automotive Sector232.5 GHG emissionsThe automotive sector releases GHG emissi
198、ons across the entire value chain,from the production of key materials such as steel and aluminium to the manufacturing of automotive parts and vehicles to the transport of finished goods and end use.Road transport was responsible for 45%of global oil demand131 and 16%of global GHG emissions in 2022
199、,with cars and vans alone accounting for 10%of emissions.132Scope 1 and 2 emissions are primarily generated by energy-intensive manufacturing processes,such as material transformation(smelting,stamping,casting and forging)and handling,heating and cooling.133 Scope 3 emissions,however,typically make
200、up over 80%of total GHG emissions in the automotive sector,and for some individual manufacturers,this can be as high as 99%.134The distribution of GHG emissions across the value chain differs between ICE vehicles and BEVs(and other alternative solutions).135 In particular,ICE vehicles currently gene
201、rate 65-80%of their lifetime emissions from exhaust emissions as the car burns fuel and another 18-22%of emissions from the production of materials(primarily from steel and aluminium).With a mass-market transition to BEVs,however,more than 60%of automotive life cycle emissions are expected to come f
202、rom materials by 2040136(primarily from the batteries,then steel and aluminium).137Many companies in the sector have set emissions reduction targets for direct operations(Scope 1 and 2)and across the value chain(Scope 3)and are starting to take action.In particular,efforts to date have focussed on d
203、irect emissions reduction.Emissions reduction targets range across companies,for example:Volkswagen Group aims to reduce average CO2 emissions by 30%per vehicle over the entire life cycle by 2030 against a 2018 baseline.138 Mahindra aims to reduce Scope 1 and 2 emissions by 47%per equivalent product
204、 unit and reduce Scope 3 emissions by 30%per sold product unit by 2033 against a 2018 baseline.139 Volvo Cars aims to reduce CO2 emissions by 65-75%per car by 2030 against a 2018baseline.140,141 Road transport was responsible for 45%of global oil demand and 16%of global GHG emissions in 2022,with ca
205、rs and vans alone accounting for 10%of emissions.Nature Positive:Role of the Automotive Sector24Five priority actions3By taking five priority actions on nature,the sector can unlock over$960 billion of value by 2030.Nature Positive:Role of the Automotive Sector25Automotive companies can contribute t
206、o a nature-positive future by prioritizing actions to:1)avoid and reduce impacts from operations,2)avoid and reduce impacts from materials,3)transform product offering,4)conserve and restore nature,and 5)drive cross-sector collaboration(see Figure 7).Given how much of the sectors impacts are seen up
207、stream and downstream,these priority actions require companies to actively engage with suppliers,customers,peers and other industries to transform their value chains.Most of these actions are already being employed or gradually rolled out by businesses,this report calls for accelerated efforts in th
208、e automotive sector.Five priority actions for the automotive sectorFIGURE 7Five priority actions for the automotive sector23415Avoid and reduce impacts from operationsAvoid and reduce impacts from materialsTransform product offeringConserve and restore nature with Indigenous Peoples and local commun
209、ities Drive cross-sector collaboration on standards and transparency,infrastructureand policy26Nature Positive:Role of the Automotive SectorThe nature-positive transition can also present enormous opportunities for companies in this sector.The Forums Future of Nature and Business report estimated th
210、at a full nature-positive transition in the global economy could create$10.1 trillion of annual business opportunities by 2030.More specifically,estimates show that undertaking the priority actions for the automotive sector could unlock more than$960 billion in value by 2030 for businesses operating
211、 across the sectors value chain.In particular,the circular economy transition represents the majority$860 billion of this potential value.See Figure 8 and Table 3 for moreinformation.There may also be other business opportunities that present themselves for the sector that were not covered in this s
212、izing approach.Notably,the opportunity associated with transitioning product portfolios from ICE vehicles to BEVs and other alternative solutions included under priority action 3 was not considered in the original analysis and is therefore not covered in this sizing.BloombergNEF has estimated that g
213、lobal EV markets represent a cumulative$8.8 trillion opportunity from 2023 to 2030,equivalent to over$1 trillion per year,assuming a linear growth rate.142 Conversely,it will take time for companies to begin to realize savings on materials from the scale-up of circularity as the ecosystem evolves,an
214、d there may also be negative countereffects(i.e.new car sales could decrease as circularity and new business models are scaled-up across the value chain).Business opportunities for the automotive sector by 2030($,billion)FIGURE 8Drive cross-sector collaboration on standards and transparency,infrastr
215、ucture and policyConserve and restore nature with Indigenous Peoples and local communitiesTransform product offeringAvoid and reduce impacts from materialsAvoid and reduce impacts from operationsTotal*88996764103012345*Additional opportunites may exist not covered in this analysis.Total business opp
216、ortunities are estimated gross value unlocked,with potential losses due to future circular economy( fewer cars sold).27Nature Positive:Role of the Automotive SectorTo calculate the opportunity summarized in the waterfall in Figure 8,the following opportunities from the Future of Nature and Business
217、report were identified as relevant(see Table 3).Further information on the calculation methodology can be found in the Appendix.Priority action Business opportunity from Future of Nature and Business reportOriginal size in Future of Nature and Business report($billion)Adjustment factor to size share
218、 of automotive sector Opportunity size for automotive sector ($billion)1 Avoid and reduce impacts from operationsWastewater reuse50Automotive sector share of global GDP:3.46%1.73Expansion of renewables65022.48Energy efficiency buildings82528.53Energy efficiency non-energy intensive sectors*33711.642
219、 Avoid and reduce impacts from materialsCircular economy automotive870Total sector share of global GDP(excl.mining and metals):98.99%861.23Additive manufacturing135Automotive sector share of global GDP:3.46%4.67Technology in energy and extractives supply chains301.04End-use steel efficiency2107.26Re
220、ducing packaging waste702.42Technology in large-scale farms1956.74Technology in smallholder farms1103.80Livestock intensification652.253 Transform product offeringGreen long-range transport220Automotive sector share of global GDP:3.46%7.61Fourth Industrial Revolution-enabled long-distance transport7
221、52.594 Conserve and restore nature with Indigenous Peoples and local communitiesNature climate solutions852.945 Drive cross-sector collaboration on standards and transparency,infrastructure and policyDeep-dive on business opportunities for the automotive sectorTABLE 3*Additional opportunity beyond F
222、uture of Nature and Business report analysis.Taking these five priority actions across operations and the wider value chain will help companies in the sector avoid or reduce the four drivers of biodiversity loss(pollution,water use,land-use change and ecosystem disturbance,and GHG emissions)across t
223、he four nature realms(land,ocean,freshwater and atmosphere),mitigate risks to operations and unlock commercial opportunities.These actions will also contribute to the targets of the Global Biodiversity Framework,which aims to halt and reverse biodiversity loss by 2030(see Table 4).Nature Positive:Ro
224、le of the Automotive Sector28Mapping of five priority actions to GBF frameworkTABLE 4Selected targets from Kunming-Montreal Global Biodiversity Framework(non-exhaustive)2 Restore degraded ecosystems3 Protect/conserve land,inland water and ocean7 Reduce pollution8 Minimize impact of climate change10
225、Sustainable management of agriculture,aquaculture and forestry11 Restore natures contributions to people15 Businesses assess,disclose and reduce risks and impacts16 Enable sustainable consumption choices18 Reduce harmful and scale up positive incentives for biodiversity19 Mobilize$200 billion per ye
226、ar in financial resources for biodiversity Indirect contribution Direct contribution1 Avoid and reduce impacts from operations2 Avoid and reduce impacts from materials3 Transform product offering4 Conserve and restore nature withIndigenous Peoples and local communities4 Drive cross-sector collaborat
227、ion on standards and transparency,infrastructure and policyFor each action,companies should also set measurable and time-bound targets and report against the progress regularly to increase their accountability(see Chapter 4 for more details).Nature Positive:Role of the Automotive Sector29Companies s
228、hould follow the mitigation hierarchy at the site level,in a landscape context,taking into consideration direct,indirect and cumulative impacts.They should first avoid impacts,then reduce impacts,restore,and finally compensate143 for unavoidable residual impacts.144,145,146,147,148 Mitigation effort
229、s should align with a No Net Loss(NNL)or BNG goal for each project.149 Improve water stewardship To protect nature and minimize the vulnerability of the sector to increasing risks from reduced water availability and quality,companies should conduct water risk assessments across the value chain.In pa
230、rticular,for direct operations,companies should conduct site-level water audits and risk assessments with a catchment-based approach and establish strategies to sustainably and responsibly manage water supplies,prioritizing sites in basins facing water stress.There are a number of actions companies
231、can take to improve water stewardship,in particular:Reduce water consumption,including by replacing water-cooling processes with air cooling or investing in updating or replacing water-using equipment to maximize efficiency.For example,Mahindra has installed an Electro Deposition Reverse Osmosis(EDO
232、R)water recovery system at a sheet metal paint shop,which has increased overall paint recovery and reduced freshwater use by 22%.150 Switch from freshwater to alternative water sources,including by harvesting rainwater or treating wastewater.For example,Mercedes-Benz collaborated with a municipal wa
233、stewater disposal company to replace freshwater with treated wastewater at their Sindelfingen plant,saving a total of 123,000 m3 of freshwater in2023.151 Recycle water back into operations,for example,by introducing closed-loop recycling systems or recycling treated wastewater back into operations.I
234、mplement nature-based solutions,enhancing natural flood plains and riparian ecosystems to alleviate flood risks.152 Support water replenishment across landscapes in priority watersheds in partnership with environmental NGOs,local governments and communities.Many companies have set targets to reduce
235、freshwater withdrawal or average water use per vehicle.For example,Volvo Cars aims to reduce water withdrawal by 50%per car by 2030(versus a 2018 baseline)153 and Pirelli aims to reduce water withdrawal by 43%by 2025(versus a 2015 baseline).154 Other companies have established pilot plants that embe
236、d reduced water withdrawal and optimized water management.For example:Hero Motors latest plants have been developedwith a“green building”concept and are“zero liquid discharge”.Each uses rainwater harvesting systems to capture 2,500,000 m3 of water each year and is equipped with an effluent treatment
237、 plant that recycles 90%of wastewater back into operations,with the remaining 10%being reused for horticulturalactivities.155 Hyundai has also established a zero-liquid discharge system to reuse and recycle 100%of the water they use at their Hyundai Motors India(HMI)plant and the Asan plant in South
238、 Korea.The company achieved this by adopting practices such as harvesting rainwater and expanding reservoirs.156Avoid and reduce pollutionBeyond the water stewardship actions outlined above,which can also help tackle water pollution,the following actions can directly support pollutionreduction:Impro
239、ve monitoring of air emissions and other pollutants,for example,by implementing regular inspections to identify and tackle leaks.Transform production processes and innovate to tackle pollutants,in particular,air pollutants from paint shops.This can be achieved,for instance,by increasing application
240、efficiency and adopting sustainable chemical or non-chemical paints.For example,Mahindra applied a combination of new materials,automation and upgraded technology at their Chakan paint shop to reduce volatile organic compound(VOC)emissions by 52%.This initiative also improved chemical resistance and
241、 longevity and reduced paint cost by 17%.157 Divert hazardous waste from landfills to recycle through authorized providers and take measures to avoid spillages(for more information on actions to address material waste,see priority action 2).To protect nature and minimize the vulnerability of the sec
242、tor to increasing risks from reduced water availability and quality,companies should conduct water risk assessments across the valuechain.3.1 Avoid and reduce impacts from operationsPriority action 1Nature Positive:Role of the Automotive Sector30Various standards and guidelines exist to support comp
243、anies.For example,the following resources outline the approach companies should take for biodiversity assessment and prioritization:TNFDs LEAP approach164 SBTNs technical guidance to assess165 andprioritize166The following tools and datasets are also available to support a more detailed assessment:W
244、WFs Biodiversity Risk Filter167 The Integrated Biodiversity Assessment Tool(IBAT)168 United Nations(UN)Biodiversity Lab spatial data169 IUCN Global Ecosystem Typology 2.0170 Global Forest Watch171Tools to improve water stewardshipGuidance and tools to improve biodiversity assessment and prioritizati
245、onBOX 3BOX 4Several tools are available to help companies identify,assess,prioritize and take action on water-related material risks,including:Aqueduct from the World Resources Institute(WRI)158 WWFs Water Risk Filter159 SBTNs technical guidance on freshwater160 The Alliance for Water Stewardships(A
246、WS)Water Stewardship Standard161 CDPs Water Impact Index162Strengthen biodiversity assessment,planning and management For all owned land,businesses should conduct site-level biodiversity assessments such as species monitoring,evaluate dependencies on critical ecosystem services and develop biodivers
247、ity management plans,starting with priority sites such as those at or near areas of high ecological,cultural or community significance.Examples of such areas include International Union for Conservation of Nature(IUCN)categories I-IV Protected Areas,Key Biodiversity Areas and World Heritage Sites.16
248、3In addition,the World Economic Forums Alliance for Clean Air unites business leaders and policy-makers to reduce air pollution across global value chains.A science-based guide has been developed,which businesses can use to understand their impact on air pollution,and unlock a new path to accelerate
249、 climate targets.Nature Positive:Role of the Automotive Sector31Accelerate GHG emissions abatementThere are a number of actions that companies can take to reduce GHG emissions as part of an integrated approach to transport and energy decarbonization and electrification.Companies can:Decarbonize heat
250、 and power sources:Electrify heat production or switch to low-carbon fuels.Innovate to decarbonize welding processes byusing gas.Increase the use of renewables for vehicle manufacturing and assembly,ensuring procurement is in line with standard due diligence and economic requirements,and embeds crit
251、eria to identify projects that optimize environmental sustainability,social equity and climate resilience.172,173,174 For example,Volvo Cars already use 98%renewable electricity in their own operations,175 and Toyota and Volkswagen Group also use 100%renewableelectricity across at least all EU produ
252、ction sites.176,177Optimize production processes:Energy efficiency could represent over half of carbon emission reduction contributions across all industries by 2050.Energy also accounts for at least 5%of an average manufacturing companys costs,and energy efficiency measures could save between 10%an
253、d 20%ofthose costs.To achieve energy savings,companies can improve the sizing,control,optimization and retrofitting of existing carbon-intensive equipment;implement energy management systems and standards;install energy recovery systems,such as waste heat recovery;and establish smart use strategies
254、and optimizeequipment.For example,Mahindra installed a unit to recover and re-use waste heat from chassis production pre-treatment,which resulted in a 23%reduction in natural gas consumption by their hot water generator.178 Decarbonize logistics and transport for materials and completed vehicles:Opt
255、imize routes and use efficiency,and collaborate with other automotive companies and industries to identify transport-sharing opportunities.Use lower-impact transport options where possible.For example,companies like Volkswagen Group are already using rail instead of heavy goods vehicles(HGVs).179 Us
256、e low-carbon fuel substitutes(such as ethanol,natural gas,biofuels,hydrogen and electricity)in HGVs and support shipping providers to transition to low-carbon or carbon-free fuels.See the World Economic Forums The“No-Excuse”Framework to Accelerate the Path to Net-Zero Manufacturing and Value Chains
257、report for more detail.The World Business Council for Sustainable Developments(WBCSD)Switch platform also provides access to knowledge support and tools for companies decarbonizing and electrifying buildings,transport and energy.180 Key materials include steel,aluminium,battery materials,polymers,ru
258、bber andleather.Expand circularity and innovate to avoid and reduce material waste across the value chain The circular economy has the potential to reduce life cycle emissions per passenger kilometre(km)by up to 75%by 2030.181 Circularity also presents an opportunity to improve profitability by appr
259、oximately 1.5 times across the value chain and to increase revenues per vehicle by around 10 times over the life cycle to 15-20 times its sales price.New circularity value pools mainly materialize in life cycle services(e.g.repair,reuse,remanufacturing and recycling)and as-a-service models(e.g.leasi
260、ng/subscription,car sharing and mobility-as-a-service).182,183To reduce material use,in particular primary and non-renewable material use,and capture these new value pools,automotive companies can:Establish circular inputs,working towards circular material stock where all materials are 100%recyclabl
261、e,and starting with select materials(e.g.aluminium).3.2 Avoid and reduce impacts from materialsPriority action 2Nature Positive:Role of the Automotive Sector32 Innovate product and process design for:184 Resource efficiency:This can be achieved by automating manufacturing,reducing yield losses in op
262、erations and reducing packaging use.For example,85%of Mahindras sites already send zero waste to landfill(ZWL),instead redirecting it to reuse or recycling operations.They aim to reach 100%of ZWL sites by 2030.185 Use of recycled and renewable materials:This can be achieved by co-designing materials
263、 with upstream providers to improve recycling rates,adjusting material specifications so that a higher scrap intake is possible,innovating to accelerate the use of scrap steel186,187 and replacing existing materials with alternatives.The latter can be implemented,for instance,by switching from virgi
264、n plastics to recycled plastics and bio-based materials or using soybean-based foam in seating and headliners.188 For example,Continental Tire has produced and tested the first tyres with treads made from 100%dandelion-derived rubber polymers.189 To accelerate this agenda,WBCSDs Tire Industry Projec
265、t is working to identify and address the potential human health and environmental impacts associated with tires.190 More broadly,many automotive companies,including Volvo Cars,191 Mercedes-Benz,192 Renault193 and Stellantis,194 and tyre companies such as Pirelli195 and Michelin,196 aim to use betwee
266、n 30%and 40%reused,repaired,recycled or renewable materials in new models or fleets by 2030.Circularity:Investments should be made in circularity,including by promoting standardization and compatibility of products and processes,and designing products for repair,disassembly and remanufacturing.For e
267、xample,this can be accomplished by designing modular vehicles197 to facilitate dismantling and partreplacement.Long and extended life:Product longevity should be prioritized,for instance by designing for reliability,durability,customer attachment and trust,and facilitating maintenance,repair and upg
268、radability.Invest in reuse,remanufacturing and EOL management at scale:Invest in automated processes,new technologies for reuse and remanufacturing,and large-scale facilities to increase cost competitiveness.Establish efficient mechanisms for vehicle collection and disassembly,for example,through di
269、gital asset tracking.Define requirements for EOL material processing to reduce downcycling.Develop improved waste collection and sorting systems in factories for processing scrap and EOL materials to increase process efficiency and enable higher-valuerecovery.Establish alliances to ensure quality sc
270、rap is returned to material suppliers without contamination and is available for reuse.Invest in enhanced scrap treatment facilities to better manage the increased volume and diversity of scrap.For batteries specifically,collaborate with other automotive companies and industries to establish a syste
271、m for battery recycling.This is currently challenging given high costs and a lack of standardization across manufacturers however,battery recycling could be cost-effective given the value of the metals within,and could support supply security of critical minerals.As a next step,several companies are
272、 establishing pilot plants to expand circularity,for example:Renault created the Refactory in Flins,France,a plant dedicated to vehicle revalorization business models,which aims to dismantle an average of 10,000 vehicles and recondition 45,000 vehicles annually by 2023,and repair 20,000 electrical b
273、atteries per year by 2030.198 Several companies have set up facilities focussed specifically on battery circularity,including Volkswagen Group,which opened their first pilot facility for recycling high-voltage vehicle batteries in Salzgitter,Germany,in 2021.199 Another example is Mercedes-Benz,which
274、 is constructing a pilot plant for recycling lithium-ion battery systems in Kuppenheim,Germany.200Others have also formed partnerships to promotecircularity scale-up or support established consortiums to advance research anddevelopment(R&D).For example,Volkswagen Group has established a research con
275、sortium,HVBatCycle,which aims to prove that the most valuable components of traction batteries can be recovered and reused multiple times throughrecycling.201Companies will need to identify appropriate solutions for the initial financing of circularity levers.Third-party investors and public funds c
276、ould play a critical role by financing large-scale capital projects or funding research into promising technologies.202Nature Positive:Role of the Automotive Sector33Engage with suppliers and source responsiblyCompanies should identify,assess and disclose their nature-related impacts,dependencies,ri
277、sks and opportunities across the supply chain(see Table 1 for more information),incorporating environmental data from suppliers and starting by assessing priority sites and high-impact commodities.203 Where sourcing location data is available,companies can also use other available resources to scree
278、n supply chain risks(see Casestudy 1).To improve access to and quality of data,companies should educate suppliers on environmental data requirements and develop common data requests,supporting capacity-building and harnessing collective buying power to drive transparency(see more detail on improving
279、 standards and transparency in priority action 5).For example,BMW Group,Scania,Volvo Cars and Volkswagen Group were lead partners in creating a joint supplier questionnaire for parts procurement,which is increasingly becoming the industrystandard.204 In addition,companies can incorporate nature-rela
280、ted performance criteria into the supplier due diligence and management processes,for example,by adding requirements to be deforestation-free205 or fossil-free,favouring non-overexploited raw materials or not sourcing materials from IUCN categories I-IV Protected Areas,Key Biodiversity Areas and Wor
281、ld Heritage Sites.206 For example,Mercedes-Benz require all sourced cobalt and lithium to be from Initiative for Responsible Mining Assurance(IRMA)-certified sites.207 Alternatively,companies can provide incentives,such as shorter payment periods,to suppliers who advance natureaction.Finally,compani
282、es can strategically engage with suppliers to advance nature action,either individually or by joining forces with other purchasers.This can be done by integrating nature requirements with existing climate sourcing requirements.For example:Companies such as Mercedes-Benz,Volkswagen Group,BMW Group an
283、d Scania have formed partnerships to purchase low-carbon steel.For example,Scania set a joint target with SSAB to decarbonize all steel deliveries by 2030.208 Volvo Cars,General Motors,Scania,Mahindra and Ford are members of the World Economic Forums First Movers Coalition(FMC),and use their purchas
284、ing power to decarbonize steel,aluminium or both.More than 500 of Volkswagen Group Chinas suppliers have signed a declaration committing to switching to renewable electricity.209 By 2025,Stellantis aim to ensure that suppliers(Level 1 and Level 2)aligned with 80%of their annual purchase value have C
285、O2 reduction targets compliant with the Paris Agreement,and they mean to increase this share to 95%by2030.210 Companies should identify,assess and disclose their nature-related impacts,dependencies,risks and opportunities across the supply chain.Nature Positive:Role of the Automotive Sector34Transit
286、ion product portfolio Companies should transition product portfolios from ICE vehicles to battery electric vehicles(BEVs)and other alternative solutions.211 This should follow a life cycle assessment of environmental impacts,including an evaluation of trade-offs between GHG emissions and other natur
287、e impacts.This process should be informed by certain considerations,such as efficiency of energy use(acknowledging analysis showing that EVs outperform other options in this area),212 and regional context,e.g.the local renewable energy penetration(see Case study 2 for more detail on impact accountin
288、g methodologies).For example,Volvo Cars aims to reach 100%EV sales by 2030 and Hyundai by 2035.Other companies are following,aiming for 30%to 50%electrification by 2030 or full electrification by 2035 to 2050.213,214,215 There are also opportunities to reduce nature impacts by optimizing and limitin
289、g the size and weight of vehicle bodies,as well as key components such as batteries,thereby decreasing the need for materials and reducing fuel consumption.For any portfolio shifts,it is critical that companies plan ahead for transitions and account for long lead times,as vehicles typically take fou
290、r to six years from initial concept to market.To better measure and value corporate impacts on nature and society,the Value Balancing Alliance(VBA),a coalition of around 30 multinational companies,is pioneering impact accounting in its mobility cluster.It aims to contextualize sustainability data an
291、d translate it into comparable monetary values,reflecting corporate impacts across the entire valuechain.Many nature-related impacts in the automotive industry originate within the value chain.Therefore,targeted efforts to reduce environmental impacts require a comprehensive understanding of the mos
292、t material impact drivers,sectors or regions.Combining VBAs impact accounting methodology with extended input-output modelling,216 Mobility Cluster member ZF Group employed the following four steps to identify hotspots:1.Mapping tier 1 suppliers:Aligned purchasing data with Exiobase sectors and coun
293、tries to connect suppliers to relevant environmental data2.Modelling the supply chain:Modelled environmental impacts from tier-1 to tier-n suppliers,using input-output modelling3.Measuring environmental impacts:Used VBA impact accounting methodology to estimate impacts,capturing the regional context
294、 and differences4.Identifying key impacts:Identified the impact drivers,sectors and regions that have the most material environmental impacts to guide strategic priorities,enabling a resource-oriented analysis,assessing impacts related to materials like metals and woodIn addition to the hotspot anal
295、ysis,impact accounting can also be used to measure and compare different nature impacts,such as GHG emissions and land-use change.This can help companies to evaluate nature-related trade-offs for potential supply chain interventions.CASE STUDY 2Implementing impact accounting across the automotive su
296、pply chain3.3 Transform product offeringPriority action 3Nature Positive:Role of the Automotive Sector35Expand into new business models and influence customer behaviourIn addition,companies can expand into new business models to extend life,facilitate improved recycling and optimize customers use pa
297、tterns(with users cars currently being parked 95%of the time on average).217,218 These include:Mobility-as-a-service models:Examples include vehicle-on-demand(such as car rental,car sharing,peer-to-peer sharing and micro-mobility)and mobility-on-demand(such as ride-hailing,ride-sharing and demand-re
298、sponsive transport/ride pooling).For instance,the ALIKE project plans to put 10,000 autonomous shuttles on Hamburgs roads by 2030,supported by the federal government,the Hanseatic City of Hamburg and a consortium of industry partners,including vehicle manufacturers such as VolkswagenGroup.219 Compon
299、ent-as-a-service models:Examples include battery swapping or providing a guarantee on battery service.For instance,in China,NIO had completed over 40 million battery swaps by March 2024 and offers different tiers of battery-leasing subscription models.NIO has also partnered with other Chinese automa
300、kers,including Changan,Geely,Chery and JAC,in 2023 to develop battery swap standards and expand the battery swap station network in China.220 Leasing and subscription ownership models:Shared mobility models,such as leasing and subscription ownership,optimize customer use patterns and reduce ownershi
301、p of underused vehicles.Support nature conservation andrestoration In pursuing conservation and restoration efforts,companies should first take steps to rigorously apply the mitigation hierarchy at a site level and address the impacts of their own activities(avoid,reduce,then restore).Then,they shou
302、ld compensate for unavoidable residual impacts as a last resort after all other attempts at preventing or reducing impacts have been considered.221,222 Efforts should be aligned with a NNL or BNG goal for each project.223 It is important to note that there are certain cases where compensation is not
303、 appropriateand should not be used.Compensation efforts should follow specific principles,such as those outlined by The Nature Conservancy,224 United Nations Environment Programme(UNEP),225 IUCN226 and the Business and Biodiversity Offsets Programme(BBOP),227 including additionality,equivalency,loca
304、tion and temporal considerations.In many regions,compensation is supported by government policies.The number of countries with biodiversity offset policies doubled from 60 to 115 from 2001 to 2017.However,there are still regions where more regulatory development is needed or compliance is weak and w
305、here companies can work with governments to strengthen policies as well as policy compliance and implementation.228 In addition,companies are also encouraged to contribute to systems-wide conservation and restoration within and beyond their own value chains,229 and target investments towards contrib
306、uting to government targets under their National Biodiversity Strategies and Action Plans(NBSAPs).Companies should adopt holistic,ecosystem-wide approaches,incorporating Indigenous ecological knowledge that promotes balance and sustainability.Companies are also encouraged to contribute to systems-wi
307、de conservation and restoration within and beyond their own value chains.3.4 Conserve and restore nature withIndigenous Peoples and local communitiesPriority action 436Nature Positive:Role of the Automotive SectorEmbrace standards andtransparencyAs outlined in priority action 2,companies should iden
308、tify,assess and disclose their nature-related impacts,dependencies,risks and opportunities across the supply chain and engage with suppliers.Companies can also use external assurance frameworks to secure a guarantee on the implementation of responsible production standards,such as IRMA,The Copper Ma
309、rk and the Aluminium Stewardship Initiative.In order to further improve access to and quality of data and enable data sharing across the value chain,companies can engage and collaborate with others,including upstream and downstream companies,traders and distributors,financial institutions,industry a
310、ssociations and NGOs,to:Develop environmental data management and sharing technologies to improve traceability through the value chain(see Case study 3 for more detail)Establish common impact assessment methodologies to drive standardization andconvergence Establish data needs of downstream customer
311、s and collectively develop solutions toaddress these needsFor example,for batteries specifically,a consortium of 11 partners,including BMW Group,Umicore and BASF,has received 8.8 million in funding from the German government.They used this to develop a common classification and set of standards for
312、gathering and disclosing data on batteries,releasing a study in 2024 that outlined the benefits and challenges of digital product passports for batteries.233,234 In addition,theGlobal Battery Alliances Battery Passport235aims to improve transparency in critical minerals sourcing by collecting and re
313、porting data on the make-up,manufacturing history and sustainability of a battery across its life cycle.This includes investing in credible and effective nature-based solutions(through place-based conservation and restoration or landscape and jurisdictional approaches),and partnering with environmen
314、tal NGOs,local governments,Indigenous Peoples and other local communities,such as through the World Economic Forums 1t.org initiative.As supporting guidance,companies can refer to the Global Standard for Nature-based Solutions published by IUCN,which proposes eight criteria and 28 indicators to deli
315、ver results that are“environmentally sound,socially just and economically feasible”.Companies can start by establishing flagship projects,either by enhancing existing beyond-value-chain carbon abatement investments or launching new nature-based solutions that contribute to net-zero and nature-positi
316、ve movements.For example,Volkswagen Group has established a Biodiversity Fund with an annual allocation of up to 25 million for external projects starting in 2025,230 and as a member of the 1t.org Corporate Alliance,Mahindra has committed to planting 1.5 million trees a year,with the aim to plant fi
317、ve million trees annually by 2026.It has already planted a total of 20 million trees in Araku,India as part of Project Hariyali.231 Where possible,companies should prioritize projects in locations relevant to their upstream,downstream or own operations,where investments can also provide risk mitigat
318、ion benefits(e.g.protection fromflooding).Invest in innovative biodiversity financing mechanismsA 2020 report estimated there is an average global biodiversity financing gap of$711 billion per year required for the protection,restoration and enhancement of nature,232 where the private sector has a k
319、ey role to play in helping bridge this gap by investing in a nature-positive transition.Target 19 of the Global Biodiversity Framework proposes several innovative ways to mobilize public-and private-sector resources.For example,companies could consider investing in payment for ecosystem services,gre
320、en or blue bonds,nature restoration funds and voluntary biodiversity certificates or credit markets.Through careful assessment of the advantages and disadvantages of available products,companies can contribute to meaningful long-term biodiversity conservation that is aligned with both their internal
321、 values and targets as well as national objectives.The Forum has published a Private Sector Roadmap to Finance and Act onNature.3.5 Drive cross-sector collaboration on standards,transparency,infrastructure and policyPriority action 5Nature Positive:Role of the Automotive Sector37To support the conne
322、ction and sharing of data in the automotive sector,companies across the value chain,including BMW Group,Mercedes-Benz and Volkswagen Group,collaborated to launch the open data ecosystem Catena-X in 2021.In the past,many OEMs and first-tier suppliers built their own digital platforms for data exchang
323、e with their partner networks.Each partner in the network had to deal with a variety of different systems,standards and approaches,which restricted scalability and multi-tier collaboration.As a result,a new collaborative network approach was necessary to address these shortcomings.The Catena-X netwo
324、rk aims to cultivate interoperability across all stages of data-based value chains in order to build resilient supply chains and support systematic decarbonization.Companies can exchange data with other network participants in a way that is standardized,secure and simple,based on the principle of da
325、ta sovereignty.Solutions are being implemented in the system over time to facilitate common goals,supported by common standards for use.Use cases currently in development include traceability of components,environmental and social governance(ESG)monitoring,product carbon footprint calculation,circul
326、arity and digital product passports.Use cases like circularity and digital product passports will also allow automotive manufacturers to track the life cycle of a cars battery,from production to EOL.When the battery reaches the end of its useful life in a vehicle,this will enable it to be reused in
327、stationary energy storage applications or recycled to recover valuable materials like lithium and cobalt,closing the loop on battery resources.The Catena-X association is now supported by 189 partners who have the opportunity to participate in developing standards and use cases,and after the initial
328、 concept was developed in Germany,it is now being expanded to Europe,North America and Asia(includingChina).CASE STUDY 3Harnessing data systems in the automotive value chainNature Positive:Role of the Automotive Sector38Educate customers,support downstream network and scale up transition infrastruct
329、ureTo de-risk commitments and tackle nature-impacts across the value chain,companies can:Educate and support customers to make more environmentally friendly choices.236 This can be achieved,for example,by producing an accurate reflection of products carbon footprints and other nature-related impacts
330、(such as water use)in prices and labelling either in dealerships or in-app for mobility-as-a-service models.Alternatively,companies can collaborate with downstream distribution networks to support customers in identifying appropriately sized vehicles and battery ranges,and understanding availability
331、 of charging infrastructure to combat rangeanxiety.Engage with downstream distribution and aftersales network,and help them to deploy site-level biodiversity assessment and develop management plans across all owned land,starting with priority sites.Support scale-up of energy grid integration infrast
332、ructure,including smart charging and vehicle-to-grid technology.For example,BMW Group,General Motors,Honda,Hyundai,Kia,Mercedes-Benz and Stellantis have formed a new charging network joint venture that aims to expand access to high-powered charging in North America by installing at least 30,000 char
333、ge points.237 Volkswagen Groups Electrify America covers more than 4,250 fast chargers in North America.238 In collaboration with other automotive companies,call on governments to strengthen nature-related policyAutomotive companies have a role to play in collectively calling for more progressive policies and regulations that set the minimum standards for the sector.Indeed,companies can advocate f