More than 10% Co2-reduction - example of a global OEM

Companies need to go beyond?just pledges, offsets, and reporting to take real climate action. Decarbonization pioneers don't let a complex supply chain stand in the way of their sustainability targets.?They manage carbon emission reduction across your value chain, to operate-carbon aware and transform your enterprise?for a net-zero future.

Often, the focus around vehicle emissions centers on emissions during the vehicle usage; an overlooked hotspot is in the vehicle production itself. This phase alone accounts for approximately 15-20% of the automotive sector's carbon emissions.

With a shift to non-fossil-fuel-powered vehicles, McKinsey predicts that emissions from material production will soon surpass tailpipe emissions, making up for 60% of life-cycle emissions by 2040. Adapting to this shift will require automotive companies to consider their entire value chain and in particular, their supply chain. If automotive companies start acting now to address the future rise of material emissions, the challenge can become an opportunity for companies to cut costs through carbon abatement. In the following, you find the example of a leading automotive OEM, which used carbmee on his journey to Net Zero.

Where did we start?

Our automotive client's goal is to achieve carbon neutrality in direct, indirect and supply chain emissions by 2030, with a focus on energy and materials. To do this, the Co2 emissions must be decoupled from corporate growth.

Our client faced the following challenges:

• Complex Emissions Calculations: In the past, the company spent weeks on PCF modelling
• No company-wide database: makes consistent tracking and calculation difficult for climate strategy assessment.
• Limited visibility of opportunities: Complex and long-term initiatives through to short-term initiatives with high potential could not be identified

How did we do it?

The project was carried out along three phases: transparency, detailing, reduction

1. Measure: The aim of the transparency phase was to validate the baseline in 15 days and to identify focus suppliers/parts. First, we focused on the chassis and housing. This includes 28 suppliers with a total emission of more than 5 Co2 tons.
2. Detail: Of these, 4 suppliers were responsible for around 40% of the emissions. By working with these 4 suppliers for 5 products we were able to achieve a higher precision of 43% of the chassis emissions. The cooperation with the suppliers was supported by carbmee's automated workflow. The selected suppliers are sent the data records for their articles and asked to either validate and justify the emission factors from the econinvet-database and the weight from the product life cycle management of the customer.
3. Reduction: With carbmee's Scenario Planner, co2 savings of 1.6 - 3.2 million € could be achieved (at a price of 96 € per ton). Initially, the split between material and transportation emissions was 96% material and 4% New reduction ideas led to an overall reduction of 14%. Most of the them came from material changes (13%). Increasing the proportion of recycled aluminum by 50% leads to a reduction of approx. 14%?Transport: switch from diesel to bio-diesel leads to further reduction of additional 1% What have we achieved? By using carbmee, the customer was able to reduce the calculation effort to a minimum and identify significant co2 and cost savings based on facts. Automation: The automation by carbmee enabled our client's chassis data to be calculated in 1 hour compared to up to 22 hours using traditional manual methods. The calculation of the best possible production potential enabled our client to identify annual cost savings of 1.6 - 3.2 million €.