In Europe, rules and systems are being developed to become carbon neutral (CN) over the entire life cycle of a vehicle. The EU also intends to introduce a common methodology for assessing CO2 emissions over the entire life cycle of passenger cars/vans by 2025 and introduce it after 2026. In addition, legislation on the recovery/recycling of batteries, parts, and raw materials is being developed to implement the Circular Economy.

All automobile manufacturers are accelerating their efforts to achieve CN throughout the entire life cycle, from procurement to reuse. To reduce the carbon footprint (CFP) at the product level, all companies are imposing certain CO2 reduction targets on their suppliers for procurement of parts and materials with large CFP.

This report focuses on the analysis of 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, OEM/supplier and industry-wide cooperation toward supply chain CN, and Circular Economy practices, and provides a perspective on the direction of CN for the entire automotive supply chain.