How are subcontractors affected by the sustainability goals of the automotive industry

Volvo Cars aims to be climate neutral by 2040. Scania plans the same, but this is far from just about the emissions of the vehicles they produce. It is also about net zero emissions of carbon dioxide throughout the value chain. And when it comes to the automotive industry, the value chain is long. Very long.

“These chains are global and are complex. It's concerns everything from raw materials to the paint and tools used in manufacturing the components that the cars consist of. It's about the semiconductors for the electronics, it's about sheet metal tools and huge casting tools that will shape the larger parts for the car, and much, much more,” says Boel Wadman, research and business developers in manufacturing processes at RISE.

Large part of climate footprint comes early in the value chain

It is actually a very small portion of a vehicle's overall climate footprint that occurs when the vehicle is manufactured. A clear majority arises earlier in the value chain. Which is something that gives subcontractors an important role in work with sustainability. The question is how can they live up to that responsibility?

“They will be facing stringent demands to declare climate impact both for their products and their production,” says Boel Wadman.

“It's about, for example, the energy they use to power their factories, but also the origins of their raw materials, which materials they've bought, traceability and the carbon-dioxide footprint.”

For several raw materials, such as cobalt, there are already requirements for traceability, so there are often routines in place.

“But other parts of the chain are harder to document. For example, many automakers demand recycled materials, and here subcontractors need to be able to show relevant traceability – where the materials come from and what they’ve been used for in the past.”

Recycled materials have a bit left to go

There are also other issues around reuse that need to be resolved. This partially concerns supply. There is, for example, a huge shortage of recycled plastics, but streams, purchasing systems and sales systems must also be in place.

“Additionally, specifications from purchasers need to be rewritten, so that they do not require properties that recycled materials cannot live up to.”

RISE provides support in the transition

Many subcontractors are small and medium-sized enterprises that have neither the time nor funds to produce lifecycle analyses themselves, or search for recycled materials retailers.

“That's why we at RISE work with many of with them to, for example, produce faster and easier environmental assessments of production and products. The aim is to give Swedish subcontractors a headstart and potential for greater competitiveness.”

RISE also works with knowledge dissemination, and with developing tools to make it easier to calculate the consequences that different new raw materials, components or production methods may have for environmental impact.

“We also help guide individual companies along the right path. We have many people at RISE who know a lot about environmental and energy analysis, and who can provide advice on how to get started and where to get more support in switching to more environmentally friendly production.”