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Sustainability takes back seat in auto industry sourcing decisions

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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.

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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Sustainability takes back seat in auto industry sourcing decisionsSustainability takes back seat in auto industry sourcing decisions - survey
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