New-Japan Business Consulting
Business strategy reports, business matching and M&A in Japan


Going carbon neutral in the European automotive supply chain

In Europe, rules and systems are being developed to become carbon neutral (CN) throughout the entire vehicle life cycle.

The EU intends to compile a common methodology for assessing CO2 emissions over the entire life cycle of passenger cars/vans by 2025 and introduce it from 2026 onwards. Legislation on the recovery/recycling of batteries, components and raw materials is also being developed to put the Circular Economy into practice.

All car manufacturers are accelerating their efforts to achieve CN throughout the entire lifecycle, covering processes from procurement to re-use. To reduce the carbon footprint at the product level, all companies are imposing certain CO2 reduction targets on their suppliers in the procurement of parts and materials with a large CFP.

This report focuses on analysing the strategies and policies of OEMs and Tier 1s to become carbon neutral in the automotive supply chain in Europe. It covers the latest developments in the promotion of each company’s LCA approach, cooperation between OEMs/suppliers and across the industry towards supply chain CN, and circular economy practices, and provides a perspective on the direction of CN for the entire automotive supply chain.