The world’s biggest automaker has one of the dirtiest supply chains: report
Summary
Tesla, Ford, and Volvo lead a new ranking of 18 automakers for their commitment to reducing carbon emissions and improving supply chain ethics. In contrast, Toyota ranks near the bottom, highlighting ongoing challenges in its environmental efforts.
Key Insights
Why do steel and aluminum emissions matter more than battery materials in EV supply chains?
Steel and aluminum together make up nearly 50% of an electric vehicle's embodied emissions, yet they have received significantly less public attention than battery materials. Manufacturing steel and aluminum is responsible for nearly 10% of global greenhouse gas emissions. Despite their massive environmental impact, a third of automakers have yet to take any action on decarbonizing their steel and aluminum supply chains, making this a critical area where the automotive industry is falling behind on climate commitments.
What is the difference between a 'clean' EV and a regular EV in terms of supply chain sustainability?
A truly 'clean' EV goes beyond just being electric—it must be built with decarbonized materials, circular practices, and a human rights-respecting supply chain. This means automakers need to source steel and aluminum produced with low-emission processes, use batteries made without harmful materials like nickel and cobalt (such as lithium iron phosphate batteries), ensure responsible mining practices, and respect Indigenous Peoples' rights throughout their supply chains. The Lead the Charge coalition emphasizes that 'it's not enough for a car to be EV to be considered truly clean,' as the environmental impact depends heavily on how all components are sourced and manufactured.