How suppliers are adjusting to automakers' carbon emission reduction targets

According to a 2021 report by the World Economic Forum, the automotive supply chain is one of eight supply chains accounting for more than half of the world's emissions, alongside the food, construction, electronics and freight sectors, our sister publication Automotive News reports.

Automakers have set environmental targets for their suppliers to hit. General Motors asked its suppliers to sign a pledge to meet carbon neutrality targets ranging from 2025 to 2038. BMW wants a 20 percent cut in carbon emissions from its supply chain by 2030, while Mercedes-Benz is moving to have the vast majority of its parts suppliers provide carbon neutral components in the coming years.

Magna International this year partnered with the Department of Energy's Pacific Northwest National Laboratory to develop a manufacturing process that collects scrap bits of aluminum that can be reused to make parts without adding newly mined aluminum.

ZF Group signed a long-term supply agreement with Swedish startup H2 Green Steel to provide it with 250,000 tons of decarbonized steel a year starting in 2025.

Robert Bosch has 3,000 environmental and sustainability projects in place at about 400 sites, ranging from the installation of LED lighting to more efficient heating methods. The company also makes use of data and smart sensors at factories to cut down on energy use and become more efficient.

By 2030, Dana is shooting for a 75 percent reduction in its scope 1 and 2 greenhouse gas emissions — those directly emitted by the company and indirectly by energy sources.

Continental is rethinking how it makes tires to become more eco-friendly. It introduced a concept tire last year for city buses and urban delivery vehicles made up of 50 percent renewable or recycled materials.

Forvia launched Materi'act, a brand focused on the development and manufacturing of sustainable materials such as green steel and leather alternatives.