Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Guest Columnist
September 08, 2022 10:38 AM

How to drive a successful net zero strategy

The automotive industry needs to understand that the transition to carbon neutrality is no longer an option.

Sebastien Wagemans
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Sebastien Wagemans ENGIE Impact

    Sebastien Wagemans is managing director at energy provider ENGIE Impact.

    There has been a strong shift toward net zero within the automotive sector, with numerous industry leaders such as BMW, Ford, Renault, Mercedes-Benz, PSA, Volkswagen and Volvo setting ambitious targets for the reduction of Scope 1, 2 and 3 emissions.

    However, there are still several key players that have not begun the transition to net zero.

    In the past, automotive brands have shied away from reducing emissions associated with the production of vehicles. However, recognizing the damaging impact of these emissions, manufacturers have been putting pressure on key suppliers within their supply chain.

    Consequently, a number of Tier 1 suppliers such as Robert Bosch, Faurecia and Valeo are also moving toward net zero.

    While these efforts need to be accelerated, this can be considered an important first step in looking at the broader impact of the automotive sector, rather than solely focusing on the emissions produced during the a vehicle’s life cycle.

    So, what can automotive manufacturers do to expedite their journey to net zero? To be successful, there are three critical challenges that need to be addressed: Developing a strategy and addressing the implementation gap; informing funding decisions; and stakeholder engagement.

    Getting your net zero strategy in gear  

    Developing a strategy is the first hurdle for most players in the sector. Yet, even when organizations have set goals they often struggle with implementation. For example, once the targets have been set, many struggle to understand which projects should be pursued to achieve the necessary carbon reductions.

    To address these challenges, automotive manufactures should look to industry experts to fill in any significant knowledge gaps.

    Drawing from a pool of decarbonization experts means that manufacturers can capitalize on their knowledge on existing technologies.

    Consequently, efficiency and energy-reduction improvements can be maximized.

    Additionally, they can help navigate a greater array of energy-related opportunities, including the procurement of renewables, demand-side opportunities, and supply purchasing strategies. All of which can help businesses reduce emissions while simultaneously reducing spending.

    Funding blind spots

    In the face of competing demands manufacturers often de-prioritize energy-related spending. However, pitting net zero measures against critical business investments misses a crucial point: investment in a decarbonization strategy will eventually pay for itself.

    A lack of familiarity with other models of financing can be a blind spot for many automotive manufacturers that often refuse to pursue decarbonization-related projects without internal funding.

    But increasingly, up-front capital is being made available for decarbonization-related projects through a variety of financing models. These models allow automotive companies to shift the investment burden. Helping organizations meet their goals, while saving money.

    Taking stakeholders along for the ride

    Even when a viable strategy has been developed, it can still be difficult for businesses to implement decarbonization plans.

    Key to overcoming this challenge lies in engaging stakeholders from the outset of your project.

    By engaging stakeholders at every level and embedding your net zero strategy into company culture it will be easier to convince decisionmakers of the associated benefits.

    Moreover, it’s up to those leading the project to make stakeholders aware of the numerous advantages of a decarbonization strategy.

    Those companies that invest heavily in net zero will improve their bottom lines as they reduce costs, unlock new revenue streams, attract and retain the best talent, create a competitive advantage and be financed through cheaper capital.

    Map a journey

    By overcoming the above challenges, the automotive sector can begin its journey to a greener future.

    The organizations that fail to chart a path to net zero will find themselves left behind, as regulatory pressure grows and consumer confidence falls. The sector needs to understand that the transition to carbon neutrality is no longer an option, but rather a business imperative.

    RECOMMENDED FOR YOU
    Why China is poised to manufacture the world's safest cars
    Recommended for You
    Onn Haran founder and CTO of Autotalks
    Why China is poised to manufacture the world's safest cars
    Umar Zakir Abdul Hamid and Jessica Swafford
    Why being customer centric is key when developing software for cars
    Philip Nothard Cox Automotive 2023
    Why the global auto sector faces a critical year
    Capgemini Invent Head on automotive takeaways from CES 2023
    Sponsored Content: Capgemini Invent Head on automotive takeaways from CES 2023
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us