Green Rankings 2012: Vehicles & Components

Leading companies in this industry are addressing their significant environmental impacts by reducing the average carbon emissions of their fleets and by implementing green-procurement programs with product- and process-based selection criteria. Ford demonstrates best practices, having launched strong product-related selection criteria and requiring all of its major suppliers to have an ISO 14001–certified environmental-management system in place.

Worldwide, fuel standards for new passenger vehicles continue to drive the industry to develop more environmentally friendly vehicles. This trend is supported by growing consumer demand for more fuel-efficient vehicles without compromising safety. The industry has responded by increasing overall research-and-development investments in products such as electric cars and related components. Still, a notable gap exists between the industry’s “green image” and the number of sustainable cars actually manufactured and sold. Toyota is still a leader among its peers, with the production of hybrid vehicles accounting for 15 percent of its global vehicle sales.

Key Industry Impacts

• Greenhouse-gas emissions and general waste generation and disposal combined account for more than 81 percent of the total environmental footprint of Vehicles & Components companies.

• The sector accounts for about 4 percent of the total greenhouse emissions and 4 percent of all waste generation and disposal from companies in the Green Rankings.

• About 4 percent of the total environmental impact of companies ranked comes from this industry.

Critical Issue Profile: Climate Change

According to the Intergovernmental Panel on Climate Change (IPCC), about one fifth of global energy–related greenhouse-gas emissions comes from the transportation sector. In the European Union, transportation is the only major industry where greenhouse-gas emissions are still rising. While all major auto manufacturers are reducing the average carbon emissions of their fleets, the overall decline has been modest. BMW and Volkswagen stand out for having average emission-reduction rates of more than 10 percent each between 2006 and 2010. In addition to product improvements, leading companies should also disclose long-term emissions-reduction strategies that apply to global operations.

Industry Ranking: How U.S. Vehicles & Components Companies Stack Up