GHG Emissions, Industrial, Sourcing Renewables - July 8, 2021
Porsche Seeks to Reduce Carbon Emissions in Supply Chain
Porsche announced that it is calling for its 1,300 suppliers to switch to clean energy to help reduce carbon emissions in the company’s supply chain. Those unwilling to exclusively use renewable energy in the manufacture of Porsche components will not be considered for long-term contracts. This initiative is part of achieving Porsche’s goal of becoming carbon neutral across its entire value chain by 2030.
"Our battery cell suppliers have already had to use green energy since 2020,” Uwe-Karsten Städter, Member of the Executive Board for Procurement at Porsche AG, said in a statement. “And now we are taking the next important step: we stipulate that our series suppliers also use only renewable energy to produce our components, to help reduce CO2 emissions even further. We recognize that we have a responsibility to ensure that supply chains are transparent and sustainable.”
Currently, Porsche’s supply chain is responsible for about 20% of the company’s total greenhouse gas emissions. This percentage is set to rise to 40 by 2030 due to the increasing electrification of vehicles.
Porsche is reducing CO2 emissions in its own plants as well. The company launched its first all-electric sports car, Taycan, in 2019. Now, all of its large manufacturing sites have carbon-neutral operations. Porsche will invest more than one billion euros in decarbonization measures over the next ten years. By 2030, it aims for more than 80% of all new vehicles sold to be purely electric or plug-in hybrid models. As early as 2025, at least 50% of new vehicles sold are to feature an electric drive.