As Volkswagen prepares to launch a new generation of mass-market electric vehicles, the company is taking steps to reduce its carbon footprint. Regulators and environmental groups are likely to pay close attention to the emissions created during the production process.
Volkswagen’s upcoming ID Neo, the first MEB vehicle, has a carbon emissions impact from the supply chain that is 150 percent higher than that of a Golf TDI.
Supplier Demands
VW has made strong demands to its suppliers to comply with new, tighter rules about carbon emissions from their operations. The company already issues annual sustainability reports to ensure its suppliers comply with environmental and social standards.
The use of conflict minerals like cobalt is one example of the standards suppliers must meet. Volkswagen is now adding closer monitoring of carbon emissions to its list of requirements.
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This move will give VW a more accurate picture of the energy used and total emissions involved in its supply chain. The company’s 40,000 suppliers may soon be issued “S-ratings” for sustainability, which will affect their future use by the global automaker.
Manufacturing Changes
Volkswagen has already made large-scale changes to clean up its manufacturing process. The company’s Zwickau factory, which is run by Austrian hydro-power, is being converted from the production of 300,000 internal-combustion-engine vehicles a year to the same number of all-electric cars by 2021.
The factory is considered “Europe’s most efficient e-car factory.” The battery packs used in electric vehicles are a major contributor to the high carbon impact of manufacturing, but VW has committed to making its batteries with green energy.
The company plans to make other significant green-manufacturing commitments around the world, including two more plants in Germany, two in China, and an $800 million expansion in Chattanooga, Tennessee.
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Green Manufacturing
Volkswagen’s strategy to reduce its carbon footprint also includes the creation of Elli, the company’s “electric life” affiliate. Elli will sell ancillary home-related services to electric-vehicle ownership, such as clean power, energy storage, and charge points.
This service is currently limited to Europe, but it is part of VW’s effort to help owners lower their carbon impact. The company’s commitment to green manufacturing is a significant step towards reducing its environmental impact.
According to the report, VW’s corporate director for procurement, Marco Philippi, said, “This is a revolution. If there are violations, our partners will not be our partners.”
VW’s focus on reducing cobalt and cutting the cost of manufacturing is likely to have a significant impact on its suppliers. The company’s efforts to reduce its carbon footprint are a major part of its plan to launch a new generation of electric vehicles.
