Why Volvo & Audi Are Assessing Sustainability Across Their Supply Chains

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Automakers must quickly establish viable electric vehicles in their catalogs while also decarbonizing their supply chains.

Much of the progress already observed today in decarbonizing the transportation sector can be attributed to technology developments, policy ambition, and greater consumer interest in climate solutions, including electric vehicles . That’s the shared viewpoint of Karin Svensson, Volvo Group’s chief sustainability officer, and Spencer Reeder, Audi of America’s director of government affairs and sustainability.

ICE and electric vehicles both have supply chains that generate environmental impacts. Tailpipe emissions are only one factor in considering a vehicle’s life cycle emissions; gasoline and electricity fuel pathways also have upstream emissions to consider, according to the, which include extracting, refining, producing, and transporting the fuel.

While this shift will result in emissions reductions on the road, how are opportunities to drive greater sustainability improvements through the vehicle supply chain being developed?interview, Reeder acknowledged, “What I’ve observed during my time with Audi is that the global transport sector has made significant progress; however, there are hurdles that remain.”

Partnered with a supplier, SSAB, to source fossil-free steel produced using hydrogen — the fossil-free steel is now making its way into its EVs.Are looking for ways to convert to renewable power investments to help ensure lower, less volatile energy costs over the long term, acknowledging that energy use makes up a large portion of manufacturing costs;

Are upskilling current employees and training workers to create a pipeline of next-generation, expert service technicians able to work on both ICE vehicles and EVs as well as R&D; and,

 

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