Automotive Industry Faces Challenges in Sustainability Reporting

The Global ESG Monitor 2024 reveals discrepancies in sustainability reporting within the automotive industry. Notable differences exist in the quality of reports on critical raw materials like lithium and cobalt. While there are positive steps towards efficient resource use and circular economy, many companies lack detail.

Automotive companies are urged to improve transparency to comply with new European Sustainability Reporting Standards (ESRS). On average, these companies achieve 45% compliance, indicating room for significant enhancement.

The report highlights a robust midfield among car manufacturers, with top performers scoring up to 69 out of 100 points. However, discrepancies remain on issues like labor conditions in the value chain. Only 76% of companies align with UN Sustainable Development Goal 8, with inadequate reporting on workers' conditions.

Further improvements are needed, particularly concerning ESRS compliance. The industry achieves only 45% fulfillment, stressing the need for heightened transparency across the reporting process.