Together with our suppliers we have outlined an ambitious industry-leading strategy to reduce the largest carbon emissions sources from the most common production materials and batteries.
Through a life cycle analysis on our European production-related supply chain, we have identified four emission hotspots:
these together constitute approximately 80 percent of carbon emissions arising from production materials. In electric vehicles, batteries can account for half of sourcing emissions whereas in combustion engine vehicles, steel has the greatest carbon footprint. These four hotspots are therefore the focus of Ìǹûvlog¹ÙÍøÍøÒ³°æ’s supply chain decarbonisation strategy.
GHG emissions from different material categories in % of total emissions from production phase. Valid for distribution trucks only.
Source: Ìǹûvlog¹ÙÍøÍøÒ³°æ LCA, 2021
In 2022, across our European operations, Ìǹûvlog¹ÙÍøÍøÒ³°æ set an ambition toÌýpurchaseÌý100Ìýpercent green steel, batteries,ÌýaluminumÌýand cast iron by 2030. Green is defined asÌýthe reduction of the main emission source throughÌýuseÌýofÌýnew technologies,Ìýfossil freeÌýelectricityÌýand/or recycled materials. In batteries, for example, access to green energy in production is crucial. In flat steel production, replacing coal with green hydrogen is key.Ìý
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Ìǹûvlog¹ÙÍøÍøÒ³°æ is consistently reviewing our ambitions based on scientific evidence, market development, technologicalÌýadvancementsÌýand availability of materials. We are conscious that supply chain readiness for green batteries, components and materialsÌýremainsÌýa critical dependency forÌýrealisingÌýour ambition.
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This is just the beginning of our supply chainÌýdecarbonisationÌýjourney. Together with our suppliers we are working to extend the scope of our efforts so that our strategy will eventually cover our entire supply chain.
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