Clean up your mess.
That’s the message from Lead the Charge, a coalition of advocacy organizations pushing for “an equitable, sustainable, and fossil-free auto supply chain,” to automakers around the world.
On Feb. 11, the group released its third annual Auto Supply Chain Leaderboard, which ranks 18 global automakers based on their efforts to rid their supply chains of “emissions, environmental harms, and human rights violations” amid the industry’s transition to electric vehicles. While EVs don’t produce tailpipe emissions, their supply chains aren’t always clean.
This year’s report concludes that “despite notable achievements in some areas by automakers, the industry overall is making slow and inadequate progress on cleaning up its supply chains: For the third year running, no automaker achieved a total score of over 50% and the total average score across all automakers is just 22%.”
The results are based on nearly 1,600 data points and 88 indicators.
- More than half of the indicators were “fully met by at least one company.”
- Tesla topped the list with a score of 43%, followed closely by Ford and Mercedes-Benz.
- The report cited “important progress” Tesla made on steps like “disclosing detailed information on its supply chain mapping efforts and direct sourcing agreements with mining suppliers.”
- Volvo improved the most from last year’s report.
- Honda, Nissan, and Toyota ranked the lowest among automakers in the US.
“The results of this year’s Leaderboard are clear: Although some automakers have strong policies and commitments, all are falling short when it comes to implementation,” Ellen Moore, Earthworks’ interim mining co-director, said in a statement. “But it can be done. Automakers should learn from each other and adopt best practices in each indicator area.”
In a statement, Mercedes-Benz spokesperson Amanda Painter said the automaker views Lead the Charge as “a meaningful benchmark,” is “pleased with the result,” and anticipates making “further improvement” in next year’s report based on recent supply-chain actions it’s taken.
Keep up with the innovative tech transforming business
Tech Brew keeps business leaders up-to-date on the latest innovations, automation advances, policy shifts, and more, so they can make informed decisions about tech.
The other automakers Tech Brew reached out to either declined to comment or didn’t immediately respond.
The new rankings come amid major federal policy changes that could affect the auto industry’s supply-chain strategies. President Donald Trump moved to implement 25% tariffs on all steel and aluminum imports into the US, and is weighing 25% tariffs on imports from Mexico and Canada––a prospect that has set off alarm bells across the industry.
Ups and downs: The report did point to some improvements in companies’ actions on Indigenous peoples’ rights, but noted that this category remains the lowest-scoring across the industry.
The authors argued that while many auto companies “have put in place robust policies and commitments,” they aren’t following them up with action.
In a news conference unveiling the results, representatives from organizations that are part of Lead the Charge called on states like California to take on the mantle of climate leadership now that the federal government is backtracking on environmental policy.
The report also pointed to a couple of trends, including the positive impact that regulations––such as due diligence requirements implemented in the European Union––can have on driving improvements. Another was that the industry has stalled its progress on decarbonizing steel and aluminum supply chains.
“The auto industry’s lack of progress toward cultivating and securing steel and aluminum that doesn’t emit greenhouse gases is deeply concerning,” Carly Oboth, senior supply chain campaigner with Public Citizen’s climate program, said in a statement. “The manufacturing of steel and aluminum is responsible for nearly 10% of global greenhouse gas emissions...The time for half-measures is over––it’s time for real commitments to low-emission supply chains.”