As the risk of climate change is increasing, in addition to rising regulations and customer and investment pressure, the automotive industry is making its way into a new era of sustainability.

According to a report from Capgemini Research Institute, ‘Sustainability in Automotive: From Ambition to Action,’ implementation levels for top sustainability initiatives have improved only in minor increments and even reduced in some parts since the last few years.

Additionally, other recent challenges, like ongoing chip shortages and supply chain issues, have been forcing automotive organizations to re-focus their priorities.

“The automotive industry is entering a crucial decade defined by its ability to go all-electric. But while sustainability is credited as a top priority, the industry as a whole is falling behind. Automotive organizations must think practically about their sustainability approach if they are to reach the targets set out in the 2050 Paris Agreement. This includes a significant and renewed commitment to the circular economy that focuses on the full lifecycle of the vehicle as well as the inclusion of scope 3 emissions,” said Alexandre Audoin, Global Head of the Automotive Industry at Capgemini.

“Accountability is imperative for defining goals and KPIs across the entire organization and progressing against these targets.”