Sustainable Mobility

Compliance with evolving regulations and standards

Automotive production is highly energy-intensive. Automakers must navigate a complex landscape of environmental regulations, including emissions standards and waste disposal requirements, which vary across regions and are subject to change. The manufacturing phase of a mid-size passenger vehicle emits around 5.6 tons of CO₂ equivalent, accounting for about 20% of the vehicle's total lifecycle emissions.

Resource scarcity and material sourcing

The auto industry heavily relies on raw materials such as steel, aluminum, lithium, cobalt and rare earth elements — many of which have limited availability. A circular economy with a greater use of recycled materials can ease dependence on virgin resources. Current functional recycling rates of some metals are almost negligible because recycling processes are sometimes more expensive than primary raw material extraction costs. For example, only 42% of the total battery waste mass can be recycled using current available technology.

Waste generation and pollution

Automotive manufacturing generates substantial waste, including metal scraps, plastics and hazardous materials. Efficient waste management practices are essential to minimize environmental impact. Automotive manufacturing processes such as painting and surface treatment, require large volumes of water, leading to water scarcity and pollution concerns.

Transitioning to a circular economy

Moving from a linear "take–make–dispose" model to a circular approach involves designing products for durability, repairability and recyclability and creating systems to recover and reuse materials at the end of a vehicle's life cycle. New car production in Europe uses about 23% recycled materials, which could rise to 59% by 2040 — a massive boost to the industry's circularity.

Sustainable mobility in the automotive industry is shaped by various global regulations aimed at reducing environmental impact and promoting cleaner transportation options. These regulations play a crucial role in steering the automotive industry toward more sustainable practices, fostering innovation and reducing the environmental impact of transportation globally:

EU

• CO₂ Emission Standards: The EU has established stringent CO₂ emission reduction targets for new passenger cars and light commercial vehicles. Manufacturers are required to achieve a 15% reduction by 2025 and a 55% reduction by 2030, relative to 2021 levels.
• Alternative Fuels Infrastructure Regulation (AFIR): This regulation sets mandatory national targets for deploying alternative fuels infrastructure – such as electric vehicle charging stations and hydrogen refueling points – to support the widespread adoption of cleaner vehicles.

Asia

• Japan's 2030 Fuel Economy Standards: Japan has set targets to improve the average fuel economy of passenger vehicles by 32% by 2030 compared to 2016, aiming for an average of 3.9 liters per 100 kilometers.
• China's New Energy Vehicle (NEV) Policy: China has implemented policies to promote the adoption of EVs, including mandates that aim for 40% of all vehicles sold in China to be electric by 2030.

USA

• Corporate Average Fuel Economy (CAFE) Standards: Established by the National Highway Traffic Safety Administration (NHTSA), these standards aim to improve the average fuel economy of cars and light trucks produced for sale in the USA. For models up to 2021, the standards required an industry-wide fleet average of approximately 40.3 to 41.0 miles per gallon.

LCAs are crucial tools for improving sustainability in the automotive industry by evaluating a vehicle's environmental impact – from raw material extraction to end-of-life disposal. LCAs contribute to sustainability by:

Identifying carbon hotspots

LCAs help pinpoint which stages of a vehicle's lifecycle contribute the most to carbon emissions. For example, battery production for EVs generates significant emissions, but LCAs can guide manufacturers to use lower-carbon materials or cleaner energy sources.

Encouraging sustainable material choices

LCAs assess the environmental footprint of materials such as steel, aluminum, plastics and lithium. This enables more materials innovation and push for eco-design. Eco-design is an approach that allows companies to consider the product's environmental impact right from the design phase.

Improving manufacturing efficiency

Automakers can use LCAs to optimize energy and water consumption during production. For example, switching to renewable energy sources in factories can cut emissions significantly.

Promoting circular economy practices

LCAs support remanufacturing, recycling and reusing parts to extend vehicle life and reduce waste. End-of-life vehicle recycling can recover valuable materials like aluminum and lithium.

Shaping regulations and sustainability goals

Governments and organizations use LCAs to set policies for emissions reductions and sustainable production. The EU Green Deal, for example, relies on LCA data to guide automakers toward net-zero emissions. LCAs enable data-driven decisions that help automakers reduce their environmental footprint, improve efficiency and comply with sustainability regulations.

The circular economy is a powerful enabler of sustainability in the automotive industry. Unlike the traditional linear model of take-make-dispose, the circular economy focuses on designing out waste, keeping products and materials in use longer and regenerating natural systems.

Extending vehicle and component lifespans

Circular practices such as remanufacturing, refurbishing and reusing parts reduce the need for raw material extraction and energy-intensive manufacturing. For example, reusing components like batteries can cut emissions by up to 80% compared to producing new parts.

Designing for disassembly and recycling

Automakers are increasingly adopting design-for-disassembly principles. Making parts easier to disassemble and recycle saves time and increases the profitability of recycling. Additionally, this approach simplifies the recovery of valuable materials — such as aluminum, copper and rare earth elements — at the end of a vehicle's life, securing a steady supply of recycled inputs.

Lowering carbon emissions across the value chain

The circular model contributes to reducing carbon footprints across manufacturing and supply chains. Using recycled metals in production can significantly lower embedded carbon. Pairing circularity with renewable energy compounds the benefits — helping companies meet Scope 3 emissions targets and regulatory requirements.

Enabling new business models

Mobility-as-a-Service (MaaS), car sharing and battery leasing are circular business models that decouple vehicle ownership from usage. These models reduce the number of vehicles required and promote more efficient, sustainable mobility solutions.

Enhancing business resilience and supply chain stability

Reducing reliance on virgin materials and anticipating and mitigating supply chain disruptions can strengthen sustainability and business continuity. This is a key advantage in times of material scarcity, price volatility or geopolitical risk.

The circular economy provides a clear pathway to decarbonize automotive production, reduce waste and increase resource efficiency. It's not just an environmental strategy — it's a foundation for innovation, compliance and long-term profitability.