Industry impact deep-dive
Explore more: select the icons below to discover how Sustainability affects industry sectors.
Sustainability in Auto-Mobility Supply Chains: Looking Ahead with Industry Partnerships and Innovation
Consumers who invest in electric vehicles to be more sustainable also expect sustainability in the supply chain. Today, companies are seeking to reduce CO2 emissions, meet all regulatory obligations – including examining the origin and usage of new materials in electric vehicle batteries – and fulfil the economic imperatives of recycling. All this must be achieved without compromising cost and efficiency in automotive logistics. This necessitates reinventing supply chains and initiating supply chain partnerships that ensure sustainability across all activities, maximizing impact and fostering future collaboration.
To reduce their carbon footprint, automakers are shifting transportation modes (from air to sea and from road to rail) whenever feasible, a move that has encouraged the development of alternative-energy vehicles and other innovations. As companies adopt more sustainable technologies and solutions that also lower costs, they seek greater efficiency in vehicle battery recycling. With a CAGR of 40.9% from 2024 to 2031, this recycling market is expected to reach US $10.1 billion by 2031. Another key sustainability concept is shared logistics, which delivers both sustainability and cost efficiency.
Listen below to industry leaders on a range of critical sustainability topics: gain valuable insights from Michelin’s Erik Grab, join the conversation with Alan Holzmann of Volvo Trucks, and tune into our discussion with Iris Socher-Lelong about sustainability strategies under development at Bosch.
Collaborating for Sustainability - In conversation with Michelin
Erik Grab, VP of Strategic Anticipation & Innovation at Michelin, discusses the importance of sustainability to companies across the industry and describes the key carbon emission drivers and reduction levers in the tire sector. Erik acknowledges the challenges of implementing a meaningful sustainability strategy and proposes a holistic approach to emissions reduction – one that also accounts for logistics emissions. He recommends collaboration between corporates, cities, non-governmental organizations, and others to drive the sustainability agenda.
Pioneering more sustainable logistics
In this interview, Andreas Muendel, SVP Strategy & Operation Programs at DHL, discusses how DHL is embedding sustainability into its core strategy. He shares insights on implementing green technologies across logistics operations and also highlights the key challenges DHL faces, such as vehicle availability and charging infrastructure, as it works toward achieving long-term sustainability goals.
The Era of Sustainable Logistics
Understanding the power of a collective response to climate change, we also developed a platform to unite industry leaders in discussion: The Era of Sustainable Logistics. Through this platform, we have hosted a Global Summit in Europe, as well as regional chapters in the Middle East & Africa and Asia, focusing on the development of sustainable logistics.
Components Manufacturers
Impact: High
Sustainability: Recycling electronic components and electric vehicle batteries has high supply chain impact, particularly as used or damaged batteries require different handling and storage. Companies are collaborating with specialized recycling companies, developing new logistics networks, and creating standardized processes to efficiently collect, transport, and process used batteries and recover valuable materials such as lithium, cobalt, and nickel for reuse. They are also establishing new, often more costly, supply chains to source sustainable materials including rare earth elements for batteries and electronics. Reducing waste through lean manufacturing and recycling adds further supply chain complexity.
Commercial Vehicles
Impact: Medium
Sustainability: Increasing emphasis on producing fuel-efficient and low-emission commercial vehicles requires the supply chain to source advanced materials and technologies with a focus on reducing the carbon footprint. Adopting more sustainable logistics practices, such as optimizing routes for greater fuel efficiency and using alternative fuels, significantly impacts logistics operations.
Tire Manufacturers
Impact: High
Sustainability: Sourcing strategies and supply chain dynamics are affected by use of natural rubber alternatives, recycled content, and other sustainable materials. Reducing environmental impact from tire production to disposal includes developing tires with lower rolling resistance to improve fuel efficiency and implementing reverse logistics for used tires. Supply chain investments in innovative technologies and processes are needed in support of sustainable production processes, such as reducing water and energy usage. End-of-life recycling requires sustainable recycling and disposal methods to minimize environmental impact.
Passenger Vehicles
Impact: High
Sustainability: Shifting towards using eco-friendly materials (recycled plastics and bio-based composites) and low-emission production processes significantly impacts the supply chain as manufacturers need to source new materials, often requiring new supplier relationships. Reducing emissions across the vehicle lifecycle, including production, usage, and disposal, necessitates supply chain redesign, focusing on low-emission logistics and manufacturing practices. Complexity increases when circularity principles (such as designing for recyclability and setting up systems for end-of-life vehicle management) and reverse logistics are incorporated into lifecycle management.
The power of collaboration for sustainability: Insights from Volvo Trucks
Learn how Volvo Trucks is reducing logistics emissions. In this compelling interview, Alan Holzmann, Director Strategy & Product Management in Latin America, describes how the company balances efforts and resources between macro-economic turbulence, accelerated innovation to remain market relevance, and the sustainability imperative. Noting several key obstacles to improving sustainability across the value chain, Alan identifies the players most likely to cooperate on sustainable solutions to address these challenges.
In conversation with Bosch
Iris Socher-Lelong, Director Logistics Innovation & Sustainability at Bosch, acknowledges the struggle to balance emissions reduction and cost. Watch now to learn more about the challenges that Bosch has faced and the strategies to reach sustainability targets.
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