Your expert for questions
Daniela Hanauer
Partner, Sustainability Services at PwC Germany
Tel: +49 151 11720054
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Current trends such as zero-emissions vehicles and carbon-neutral manufacturing demonstrate the growing significance of sustainability in the automotive industry. These trends are not just driven by increasingly strict emissions regulations or even quotas, but also by increased awareness of environmental and sustainability issues within society, development of digital technology, protection of human rights and environmental standards in global supply chains, and other aspects such as diversity, equity and inclusion.
Car manufacturers and suppliers must therefore holistically re-evaluate sustainability in their products and value chains. The greatest challenge is complying with the increasingly complex and wide-ranging legal requirements while simultaneously ensuring cost-effective manufacturing and meeting the demands of consumers and various stakeholders – all with the aim of securing a long-term future.
To achieve this balancing act, the industry will have to do more than just develop sustainable solutions: products, value chains and entire mobility ecosystems will need to be transformed to meet the needs of the sustainable future. It means also many opportunities are existing for new value pools and change.
In order to integrate sustainability into their business models, car manufacturers and suppliers are looking for sustainable solutions that are at the same timefeasible and cost-effective. This requires consideration of issues such as the following:
Developing sustainability-related strategies and solutions: Our team from PwC and Strategy& combines automotive industry experts with cross-industry experts in sustainability. We offer a varied range of sustainability-related services – from strategy through to implementation.
In the sustainability space, we have particular expertise in the following areas:
Drawing up a sustainability strategy
Integrating and reshaping sustainability
Transforming processes along the value chain
Implementing e-mobility solutions
Reshaping innovation systems and organisations
Transforming business models: conserving resources, increasing resilience, boosting competitiveness
Measuring sustainable economic activity
Developing a comprehensive sustainability reporting system
The automotive industry is experiencing radical upheaval. The growing demand for innovative mobility solutions shows how important the issue of sustainability has become. Meanwhile, investors and lenders are also paying more attention, and cost pressure is rapidly rising, driven by intense competition. Alongside achieving economic targets and meeting quality standards, automotive manufacturers and suppliers are now also expected to have clear targets and effective processes to uphold human rights standards and related environmental standards throughout their global supply chains.
This trend is being accelerated both by political policies and changing consumer preferences. Some manufacturers and suppliers have already responded to these trends – at least, to an extent. For example, they are moving towards an all-electric product range, providing flexible mobility solutions and expanding charging infrastructure. But there’s still plenty of untapped potential: transforming the automotive industry into a truly sustainable industry is a journey that requires energetic, bold and innovative action – and our interdisciplinary experts from PwC and Strategy& are the guides you need.
Climate change and its impacts have been part of a broader societal debate for some time. As a result, lawmakers have tightened up carbon emissions regulations in recent years. Car manufacturers are required to reduce their carbon emissions at every stage of the product life cycle and in the supply chain as well. In this context, alternative powertrains such as fuel cells or electric batteries play an important role.
Value chains are becoming ever more complex, often stretching across multiple countries with different legal and regulatory systems – some more robust than others. Value chains like this offer important opportunities for social and economic development, but they also present risks around human rights. Increasingly strict regulations mean that car makers need to create transparency along the supply chain. This is the only way to trace parts back to their source and ensure sustainability along the vehicle-making value chain – regarding electric battery production, for example. With this in mind, car manufacturers and suppliers are considering how to implement innovative solutions such as a circular economy, electric battery recycling, biodegradable components and supplier development, along with community engagement and sustainable processes in research, development and manufacturing.
As self-driving and connected vehicles become more common, the focus will shift to issues such as unlocking digital value, data protection and data security. On the one hand, car manufacturers and suppliers need to identify which digital functions and technologies are necessary to implement sustainable solutions. At the same time, however, data handling needs to be responsible and future- oriented. The levels of data quality and integrity expected of car makers are also continuously rising.
A highlight from our Smart Mobility Space at IAA Mobility 2023: what will the future of mobility be like? Our expert Daniela Hanauer spoke to Alexander Britz (Microsoft), Eva Kreienkamp (EK Consulting), Dr Olga Nevska (Telekom MobilitySolutions) and Elise Harper (PwC Germany) for a panel entitled “Visions of the future(s): three divergent future mobility scenarios and the pathways from here to there”. Check out our video and find out what moves us.
“It will take many players pulling together in the mobility ecosystem to create a sustainable transformation – innovation and collaboration will be key.”
Daniela Hanauer,Partner, Sustainability Services at PwC Germany
Strategy& and PwC Autofacts® have analyzed electric vehicle sales worldwide in the fourth quarter of 2024.
The auto industry is navigating technological leaps, changing consumer preferences, global economic shifts, regulatory pressures and an uncertain EV market.
Strategy& has analyzed the impact of software-defined vehicles and offers strategies for OEMs to stay competitive.
Strategy& and PwC Autofacts® have analyzed electric vehicle sales worldwide in the first quarter of 2024.
