Polestar and Rivian have announced that they’ve collaborated on a ‘Pathway Report’ which concludes that the automotive industry is set to overshoot the IPCC’s 1.5-degree pathway by at least 75% by 2050.
The two pioneering EV makers initiated the report in response to the climate crisis. The report, which uses existing, open-source data to model the current trajectory for emissions stemming from the car industry, was carried out by global management consulting firm Kearney.
The report highlights that the car industry has a chance to change its ways. It states that by redirecting resources and focus, the industry can rapidly build the momentum required to remain in line with the Paris Agreement.
The Pathway Report focuses on the current decade and outlines immediate, clear actions that car manufacturers can take between now and 2030, including some that can be triggered immediately.
Fredrika Klarén, Polestar Head of Sustainability, says: “Car companies may be on different paths when it comes to brand, design, and business strategies, and some won’t even admit that the road to the future is electric. I believe it is, and that the climate crisis is a shared responsibility, and we must look beyond tailpipe emissions. This report makes clear the importance of acting now and together. There’s a clear cost to inaction, but there’s also a financial opportunity for innovators who find new answers to the challenges we face.”
The data presents a pathway based around three key levers. Lever 1 looks at the speed at which fossil fuel-powered cars need to be replaced by electric cars but points out that this alone will not be enough. A lot more work will be required for levers 2 and 3:
- Increasing renewable energy in power grids
- Reducing greenhouse gas emissions in the manufacturing supply chain
Pulling just one or two levers in isolation will be insufficient and only reduces the overshoot. Collective action from automakers is needed on all three levers, in parallel, at a global level.
The release stated that firstly, the industry must accelerate the transition to electric vehicles by investing in manufacturing capabilities, as well as implementing a firm end date for fossil fuel car sales globally. Secondly, build out renewable energy supply to global grids that enable EV’s to reach their full potential through green charging. Thirdly, decarbonise the manufacturing supply chains for these vehicles through switching to low carbon materials, and investing in renewable energy solutions for supply chains.
Anisa Costa, Rivian’s Chief Sustainability Officer, adds: “The report’s findings are sobering. Our hope is that this report lays the groundwork for the automotive industry to collaborate in driving progress at the pace and scale we need – and ideally inspiring other industries to do the same. Together, I’m confident we can win the race against time.”
The report shows that there is an increasing link between sustainable transformation and financial benefits. Polestar highlighted that in 2021, global sustainability investments totalled USD 35.3 trillion, representing over a third of all assets in five of the world’s biggest markets.
Press release and picture:
Polestar
