Sustainability takes back seat in auto industry sourcing decisions

📆 04/09/2023 18.12.00

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Automakers and suppliers are deprioritising sustainability initiatives in their sourcing policies and focusing on lowering exposure to geopolitical risk after years of supply chain turmoil, a survey of over 1,000 executives showed on Monday.

📆 04/09/2023 18.12.00
📰 Reuters

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The number of companies deploying sustainability initiatives like mapping their carbon footprint, optimising routes to cut emissions, and listing production information on origins and manufacturing declined by 9-11 percentage points between 2022 and 2023, the survey by consulting group Capgemini showed.

The most common factors respondents based supply chain decisions on were quality, geopolitical risk, cost, and resilience - followed by sustainability. The survey featured 1,004 executives from global automotive companies from BYD to Ford to Lamborghini with over $1 billion revenue, and suppliers with at least $500 million.

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