The automotive industry is facing growing pressure to address sustainability concerns, with governments, consumers, and investors pushing for change. Our research found that sustainability is a strategic priority for the industry, but progress is fragmented and lacking in many areas. While some areas such as sustainable R&D and manufacturing receive greater attention, there is not a consistent focus on sustainability initiatives across the value chain. Most organizations do not have a central governance body for sustainability, and only half have sustainability targets for key executives. An estimated USD 50 billion is required over the next five years to meet sustainability targets, in addition to current investments in electric vehicles, autonomous vehicles, and digital mobility services. Two critical areas will drive maximum impact: reducing emissions and increasing circularity in the supply chain.
