Climate change, the war in the Ukraine, and global tension – much of what is on the minds of the public this year is also impacting the automotive and mobility industry. In a world where continuous stability cannot be counted on, rethinking is essential, especially in terms of supply chain mechanisms and material inputs. The climate crisis adds to this while at the same time demands sustainability, something that has long since ceased to be a mere trendy idea.
Around 80 international experts came together for our fifth German American Mobility Dialogue to draw up and discuss sustainable and resilient future scenarios for this industry. These were our core topics and key learnings:
Sustainability
Buy an electric car and that’s it? It’s not quite that simple. Something must change in the big picture. Infrastructure is yet another problem – is it comprehensive and cross-sectoral? Starting with the supply chain, we must ask ourselves where the material comes from and under what conditions it was sourced. Is it socially sustainable?
There is a broad consensus that hydrogen is an alternative in the fight against emissions, but the infrastructure therefore is not up to par. At present, the system is not developed to the point of widespread adoption. Sustainable recycling of used batteries is also up for debate. General Motors’ is showcasing a new generation of batteries that represent an attempt to significantly reduce the amount of cobalt in the batteries, making them not only more environmentally friendly, but also cost-effective.
The System
The entire system needs to change, that much is certain. A unified approach is needed to think about sustainability globally and, above all, to implement it. Here, too, we must think about making changes in order to reconcile sustainability with resilient practice. So where is the best place to start?
- The Consumer
First and foremost, the consumer needs to be convinced to think alternatively. Monetary and non-monetary incentives are needed to win over not only the early adopters, but also mainstream users and get them excited about electric vehicles, for example, and to achieve rapid adoption among the general population. One approach is to speak directly with consumers and uncover what their actual wants and needs are. It is important to offer cost-effective and reliable solutions, but these can only be implemented in a sufficiently developed infrastructure (e.g., sufficient charging stations for electric vehicles).
- The Industry
Auto and Mobility companies must be held accountable.
We have 8 years to determine the next 100 years.
Now is the ideal time to establish social KPIs that reward those companies that implement these standards. For example companies that offer sustainable and green options to their employees, such as a company bicycle.
- The Approach
In addition, more workers need to be trained specifically toward the goal of developing new CleanTech solutions. More CleanTech jobs need to be created and new career paths in the field need to be made possible, especially for underrepresented groups such as the black and brown communities. In addition to social KPIs, transparency is important to make the change happen. Platforms like Cantena-X help to share industry data and thereby build sustainable and consistent industry standards.
(International) Cooperation
For the system to change, it is essential to pull together and collaborate globally. Although many car manufacturers have already anchored sustainability to their strategy and, as in the case of BMW, are pursuing clear goals in this area (50% sales in EV until 2030), it is essential that worldwide cooperation (such as between BMW and Toyota collaborating on fuel cells) is established in order to work on a joint and comprehensive infrastructure. No single company will be able to solve the sustainability problem on its own. Instead, there should be agreement on a non-competitive action plan. Frank Menchaca of SAE International expressed at the event:
We should not compete on how to recycle a battery, nor how to reduce emissions. Then we’ve already lost.
In terms of the differing perspectives brought to the podium at our international mobility dialogue, it is interesting to note that the European model is more open to working with suppliers than is the United States. On the other hand, California in particular is considered a pioneer in terms of extensive development and moreover in the acceptance of zero-emission vehicles. This is seen to California’s ambition to sell only electric new vehicles by 2035, which is a big discrepancy to the rest of the country, on average aiming for 50% by 2030. In this respect, California is an absolute trendsetter worldwide, and one can only hope that the rest of the world will emulate that somewhat.
For electric vehicles to be sustainable, the energy source must of course also be clean and sustainable. This is where both California and Germany set a positive example. Indeed, both countries have abundant wind power and solar installations. This is certainly also where the opportunity for international cooperation lies: learning from each other and pooling strengths. Because sustainability does not stop at a national border.
