Vehicle manufacturers in the race for environmental success: 2008/09 Automotive Industry Green Audit & Ranking

Abstract

The automotive industry knows it has to change. Legislation aimed at reducing emissions pollution and slowing down climate change has already had a significant impact on technologies, and future demands will require radical changes in the way vehicles are powered.

This ground-breaking new report from assesses to what extent the automotive industry - traditionally a major enemy of the environmental movement - has started to clean up its act, and reduce its environmental impact. The report tackles two clear problems; the damage we are causing to the planet (climate change) and the fact that we, as a society, are dependent on a finite resource (peak oil). The report also assesses the industry' s response to the answer to these two problems - a reduction in energy use and a switch to sustainable renewable energy sources.

The report provides a fresh, impartial - and often critical - view, not just of the automotive industry as a whole, but on the individual vehicle manufacturers themselves.

The Ranking: who currently leads the way - and why

Central to this new research is the exclusive ' Green ranking' . The 12 leading vehicle manufacturers are individually assessed, and ranked according to a variety of criteria - using examples of best practice as benchmarks. The result is a ranking that plots where each of the manufacturers are now, and commentary that provides pointers as to which companies are best positioned to win the race to be the leading ' green' manufacturer of the future.

The report identifies which manufacturers are most likely to take advantage of the huge changes that will need to happen. It also identifies those manufacturers that are already struggling to adapt. Stakeholders - whether they be shareholders or suppliers, customers or even governments, need to know which category the manufacturers they are involved with fall into.

The vehicle manufacturers covered are:

• BMW
• Daimler
• Fiat
• Ford
• GM
• Honda
• Hyundai
• Nissan
• PSA
• Renault
• Toyota
• Volkswagen

Data-rich research

The report contains a wealth of data - over 80 data tables and figures including vehicle manufacturer GHG emissions (actual and per vehicle), sales-weighted average CO2 emissions by manufacturer and fleet average CO2 emissions.

Benchmarking & comparison

The activities, attitudes and strategies of the 12 vehicle manufacturers are charted in a variety of compelling charts. Side-by-side, each manufacturer is assessed - and compared against each rival. There are exclusive charts that directly compare the vehicle manufacturer' s activities in areas such as:

• New technology
• Lifecycle analysis
• Recycling
• Investment in renewals
• CSR/sustainability rankings
• Attitudes towards climate change and potential fuel shortages
• Green supplier programmes
• Green dealer programmes

Detailed manufacturer profiles

Each of the 12 vehicle manufacturers have been analysed, and the results are set out in a series of detailed profiles. Each manufacturer has its own headline SWOT analysis - making it easy to compare each company' s current strategic strengths, weaknesses, opportunities and threats against their closest rival. The overall strategy of each company is then broken down into the following categories:

• Summary and recent developments
• CSR/climate change strategies
• Product
• Future technology strategies
• Closing the loop - lifecycle analysis
• Manufacturing

The report provides answers to such vital questions as:

• Is the automotive industry doing enough now to prevent more drastic action needing to be taken at a later stage?
• Which manufacturers are engaging management and the workforce on climate change and peak oil issues, and putting in place a corporate strategy that prioritises reducing GHG emissions and seeks alternatives to fossil fuels?
• Is each vehicle manufacturer applying their environmental strategies rigorously to all areas of their business - and engaging in dialogue with all stakeholders?
• Which vehicle manufacturers are confident about dealing with the challenges associated with future emissions legislation, and which companies are likely to struggle?
• What is current industry best practice - and what should vehicle manufacturers be thinking about for the future?
• Which new vehicle, engine and alternative fuel technologies is each vehicle manufacturer investing in?
• How do vehicle manufacturers interact with customers to help them make ' green' decisions, be it through their brands and marketing, or through the services they offer?

Table of Contents

1: Introduction

2: The problem

• 2.1: Climate change
• 2.2: Peak oil
  • what is peak oil?
  • peak oil ' deniers'
  • not on the agenda of the financial world
  • peak oil ' believers'
• 2.3: Peak oil and climate change together

3: The pressure for a solution

• Best corporate practice
• Automotive industry opportunities
• Technology solutions
• Growing pressure to act

4: The competitive issue

• 4.1: Corporate Social Responsibility (CSR)
  • What do other people think? CSR Ratings
  • FTSE4Good
  • Accountability Rating
  • Sustainable Asset Management (SAM)
  • Oekom Research
  • Vigeo
  • PSI Sector reports
• 4.2: Greenhouse gas (GHG) targets
• 4.3: Product
  • Sales mix
• 4.4: Future product technologies
  • Alternative fuels
• 4.5: Lifecycle analysis
  • What percentage of greenhouse emissions come from manufacturing?
  • Vehicle disposal
• 4.6: Manufacturers and buildings
  • Natural gas
  • CHP
  • Heat recovery
  • Biomass
  • Wind
  • Solar
  • Geothermal
  • Other
  • Green buildings
  • Waste management
• 4.7: Logistics
• 4.8: Supply chain
• 4.9: Distribution / dealerships
• 4.10: Customer interface
  • Brands
  • Advertising
  • The future

5: The Ranking

• Overall
• Toyota ranks top
• Honda scores well, but lacks transparency
• BMW, GM and Volkswagen rank middle of the table
• Renault 9th, ahead of Daimler
• Hyundai and Fiat are bottom of the pile
• CSR/Climate change strategy
• GHG targets
• Product
• Business areas

6.0: Vehicle manufacturer profiles, SWOT analyses and green audits

• 6.1: Toyota Motor Company
• 6.1.1: Summary and recent developments
• 6.1.2: CSR/climate change strategies
  • Climate change strategy
  • Recycling-oriented society
  • Greenhouse gas targets
  • Management structures and reporting on environmental issues
  • CSR/Sustainability activities and indices
• 6.1.3: Product
• 6.1.4: Future technology strategies
  • Conventional engines
  • Biofuels
  • Hybrids
  • Plug-in hybrids
  • Fuel cells
• 6.1.5: Closing the loop - lifecycle analysis
  • Recycling
  • Use of recycled / renewable materials
• 6.1.6: Manufacturing
  • Energy efficiency
  • Use of renewable energy
  • Environmental management systems
  • Zero landfill
  • Green buildings
• 6.1.7: Logistics
• 6.1.8: Supply chain
• 6.1.9: Distribution / dealerships
• 6.1.10: Consumer influence
• 6.2: Ford Motor Company
• 6.2.1: Summary and recent developments
• 6.2.2: CSR/climate change strategies
  • Strategy
  • Blueprint for sustainability
  • Climate change task force
  • Management structures and reporting on climate change
  • Greenhouse gas emissions
  • Greenhouse gas targets
  • CSR activities / engagement with outside agencies
• 6.2.3: Product
• 6.2.4: Future technology strategies
  • Conventional engine technologies
  • Transmissions
  • Weight reduction
  • Biofuels
  • Hybrids
  • Plug-in hybrids
  • Hydrogen
• 6.2.5: Closing the loop - lifecycle analysis
  • Recycling
  • Using recycled materials
• 6.2.6: Manufacturing
  • Renewable energy
  • Fumes-to-fuel
  • Geothermal energy
  • Waste management
  • Environmental management
• 6.2.7: Logistics
• 6.2.8: Supply chain
• 6.2.9: Distribution / dealerships
• 6.2.10: Customer interface
  • Eco-driving
  • Carbon offsetting
  • Branding
• 6.3: PSA Peugeot Citroen
• 6.3.1: Summary and recent developments
• 6.3.2: CSR/climate change strategies
  • PSA downplays the contribution of cars to climate change
  • Carbon neutral manufacturing?
  • Greenhouse gas targets
  • Low CO2 car targets not very aggressive
  • Management structures and reporting on climate change
  • CSR/Sustainability activities and indices
  • Partnerships
• 6.3.3: Product
  • Segmentation / sales figures
• 6.3.4: Future technology strategies
  • Diesels
  • Gasoline
  • Automated gearboxes
  • CNG
  • Biofuels
  • Hybrids
  • Fuel cells
• 6.3.5: Closing the loop - lifecycle analysis
• 6.3.6: Manufacturing
  • Energy efficiency
  • Energy descent target
  • Heat recovery
  • Energy costs
• 6.3.7: Logistics
• 6.3.8: Suppliers
• 6.3.9: Consumer influence
  • Branding
  • Image / awards
• 6.4: Honda
• 6.4.1: Summary and recent developments
• 6.4.2: CSR / Climate change strategies
  • Management structures and reporting on climate change
  • Greenhouse gas targets
  • Products
• 6.4.3: Future technology strategies
  • Gasoline engines
  • Diesel engines
  • Transmissions
  • Hybrids
  • Electric
  • Natural gas
  • Biofuels
  • Fuel cells
  • Solar power
• 6.4.4: Closing the loop - lifecycle analysis
  • Recycling
  • Using recycled materials
• 6.4.5: Manufacturing
  • Energy use
  • Waste management
• 6.4.6: Logistics
• 6.4.7: Supply chain
• 6.4.8: Distribution / dealerships
• 6.4.9: Customer influence
  • Car sharing
  • Eco-driving
  • Awards
• 6.5: Nissan
• 6.5.1: Summary and recent developments
• 6.5.2: CSR / climate change strategies
  • Ghosn welcomes ' greening' of consumer demand
  • Management structure and reporting on climate change
  • CO2 emissions targets
• 6.5.3 Product
• 6.5.4 Future technology strategies
  • Diesels
  • Continuously Variable Transmission (CVT)
  • Natural gas
  • Hybrids
  • Biofuels
  • Fuel cells
  • Electric vehicles
• 6.5.5: Closing the loop - lifecycle analysis
  • Recycling
• 6.5.6: Manufacturing
  • Environmental management
  • Energy use
  • Waste management
• 6.5.7: Logistics
  • Modal shift
• 6.5.8: Supply chain
• 6.5.9: Distribution / dealerships
• 6.6: BMW
• 6.6.1: Summary and recent developments
• 6.6.2: CSR / climate change strategies
  • Management structures and reporting on climate change
  • Strategy
  • CO2 targets
  • CSR/sustainability rating indices
  • Commitments/partnerships
  • Negative press
• 6.6.3: Products
• 6.6.4: Future technology strategies
  • Efficient dynamics
  • Dieselisation
  • Hybrids
  • Electric
  • Thermo-electric generation
  • Hydrogen
• 6.6.5: Closing the loop - lifecycle analysis
  • Use of raw materials
  • Recycling
• 6.6.6: Manufacturing
  • Energy use
  • Renewable energy use
• 6.6.7: Logistics
• 6.6.8: Supply chain
• 6.6.9: Distribution / dealerships
• 6.6.10: Customer interface
  • Eco-driving
  • Awards
  • Brands
• 6.7: GM
• 6.7.1: Summary and recent developments
• 6.7.2: CSR / climate change strategies
  • Strategy
  • Climate strategy
  • Management structures and reporting on climate change
  • Reporting
  • Greenhouse gas emissions reduction
  • CSR/sustainability indices and partnerships
• 6.7.3: Products
• 6.7.4: Future technology strategies
  • Conventional engines
  • Diesels
  • Thermo-electrics
  • CNG and LPG
  • Biofuels
  • Second generation biofuels
  • Hybrids
  • Electric/plug-in hybrids
  • New engineering organisation
  • Fuel cells
• 6.7.5: Closing the loop - lifecycle analysis
  • Recycling
  • Using recycled materials
• 6.7.6: Manufacturing
  • Energy efficiency
  • Energy efficient buildings
  • Renewable energy use
  • Waste management
  • Green buildings
• 6.7.7: Logistics
• 6.7.8: Supply chain
• 6.7.9: Consumer influence
• 6.8: VW
• 6.8.1: Summary and recent developments
• 6.8.2: CSR / climate change strategies
  • Lack of environment-related reporting
  • Lack of reporting due to lack of good news
  • Greenhouse gas reduction goals
  • High level commitments
  • CSR / sustainable activities and indices
  • Other activities
• 6.8.3: Products
• 6.8.4: Future technology strategies
  • Hybrids
  • Biofuels
  • Electric
  • Fuel cells
• 6.8.5: Closing the loop - lifecycle analysis
  • End-of-life vehicle recycling
  • Material use
• 6.8.6: Manufacturing
  • Energy sources
  • Seat invests in solar
  • Energy use
• 6.8.7: Logistics
• 6.8.8: Supply chain
• 6.8.9: Consumer influence
  • Eco-driving
  • Eco-brands
  • Offset programme
  • Consumer awards
• 6.9: Renault
• 6.9.1: Summary and recent developments
• 6.9.2: CSR / climate change strategies
  • Strategy
  • Management structures and reporting on climate change
  • CSR / sustainability rating indices
  • Commitments / partnerships
• 6.9.3: Products
• 6.9.4: Future technologies
  • Optimising conventional engines
  • CNG
  • Biofuels
  • Hybrids
  • Electric vehicles
  • Fuel cells
• 6.9.5: Closing the loop - lifecycle analysis
  • End-of-life recycling
  • Using recycled materials
• 6.9.6: Manufacturing
  • Energy use
  • Cogeneration
  • Waste management
  • Water treatment
• 6.9.7: Logistics
• 6.9.8: Supply chain
• 6.9.9: Distribution / dealerships
• 6.9.10: Consumer influence
• 6.10: Daimler
• 6.10.1: Summary and recent developments
• 6.10.2: CSR / climate change strategies
  • Management structures and reporting on climate change
  • Strategy
  • Future goals
  • CSR / sustainability rating indices
  • Partnerships / commitments
• 6.10.3: Products
• 6.10.4: Future technology strategies
  • IC engines with gasoline and diesel
  • Natural gas
  • Biofuels
  • Hybrids
  • Fuel cells
• 6.10.5: Closing the loop - lifecycle analysis
  • Using recycled materials
  • Recycling
• 6.10.6: Manufacturing
  • Energy use and efficiency
  • Employee training
• 6.10.7: Logistics
• 6.10.8: Supply chain
• 6.10.9: Distribution / dealerships
• 6.10.10: Customer interface
  • Eco-driving
  • Brands
• 6.11: Hyundai-Kia
• 6.11.1: Summary and recent developments
• 6.11.2: CSR / climate change strategies
  • Management structures
  • Reporting on climate change
  • CSR
  • Products
• 6.11.3: Product: future technology strategies
  • Conventional engines
  • Natural gas
  • Biofuels
  • Hybrid vehicles
  • Fuel cells
• 6.11.4: Closing the loop - lifecycle analysis
• 6.11.5: Manufacturing
• 6.11.6: Supply chain
• 6.12: Fiat
• 6.12.1: Summary and recent developments
• 6.12.2: CSR / climate change strategies
  • Management structures and reporting on climate change
  • CSR ratings
• 6.12.3: Products
• 6.12.4: Future technology strategies
  • Gasoline and diesel engines
  • Natural gas
  • Biofuels
  • Hybrids
  • Fuel cells and hydrogen
• 6.12.5: Closing the loop - lifecycle analysis
• 6.12.6: Manufacturing
  • Environmental management
  • Energy efficiency
  • Waste management
• 6.12.7: Supply chain
• 6.12.8: Customer interface
  • Public transport
  • EcoDrive

Bibliography

List of figures:

• Figure 1: Greenhouse gas emissions in 2000, by source
• Figure 2: CO2 emission sources in the EU-15 nations (2004)
• Figure 3: Annual greenhouse gas emissions by sector (2000)
• Figure 4: Company PSI rankings
• Figure 5: Toyota: Toward the ultimate eco-car
• Figure 6: Toyota: New engine technologies
• Figure 7: Toyota: Technologies incorporated into new engine series
• Figure 8: Toyota: Well-to-wheel CO2 output
• Figure 9: Overall (well-to-wheel) efficiency of the Toyota FCHV
• Figure 10: Toyota: Comparison of CO2 emissions during vehicle life cycle
• Figure 11: Estimate of Ford' s climate change emissions
• Figure 12: PSA' s European sales mix by segment, 2006
• Figure 13: Relationship between fuel consumption and cost of vehicle technologies
• Figure 14: Consumption of energy during manufacture of PSA vehicles
• Figure 15: Honda: Organization for worldwide environmental activities
• Figure 16: Nissan' s long-term goal for reducing CO2
• Figure 17: Nissan' s roadmap for reducing the CO2 from its vehicles
• Figure 18: Nissan' s global environment management organization
• Figure 19: CO2 emissions of Nissan' s major global production sites (1,000t-CO2)
• Figure 20: Major steps taken by Nissan to improve vehicle fuel economy
• Figure 21: Nissan' s overview of recycling performance (Apr 2006 - Mar 2007)
• Figure 22: Nissan' s waste disposal (directly to landfill)
• Figure 23: Nissan' s in-house incineration volume
• Figure 24: Nissan' s CO2 emissions from logistics (1,000t CO2)
• Figure 25: BMW' s CO2 emissions per unit produced
• Figure 26: BMW' s European sales mix by segment, 2006
• Figure 27: The BMW EfficientDynamics measures - an overview
• Figure 28: Roadmap of the BMW Group for sustainable mobility
• Figure 29: BMW' s waste per unit produced
• Figure 30: GM' s Advanced Propulsion Technology Strategy
• Figure 31: GMNA Renewable Energy Portfolio
• Figure 32: VW' s European sales mix by segment, 2006
• Figure 33: Renault' s European sales mix by segment, 2006
• Figure 34: Renault' s recycled plastics, by model
• Figure 35: Changes in the weight of packaging per vehicle (1996 - 2006)
• Figure 36: Drive technologies from Daimler
• Figure 37: The DaimlerChrysler fuel road map
• Figure 38: Material composition of the Mercedes-Benz C-Class
• Figure 39: Direct and indirect CO2 emissions from production
• Figure 40: Hyundai' s environmental management strategy
• Figure 41: Fiat' s European sales mix by segment, 2006

List of tables:

• Table 1: Comparison of environmental/sustainability reports and responses to Carbon Disclosure Project
• Table 2: Management structures: Board level representation?
• Table 3: Vehicle manufacturer attitudes in a nutshell
• Table 4: CSR/Sustainability Rankings
• Table 5: Vehicle manufacturer greenhouse gas emissions (CO2eq) 2005 and 2006, actual and per vehicle
• Table 6: Sales-weighted average CO2 emissions (g/km)
• Table 7: Western Europe: Top Ten Brands volume-weighted average CO2 emissions, g/km, 2007
• Table 8: UK fleet average CO2 by brand, 2007 compared to 2006
• Table 9: US: Fleet average CO2 emissions by vehicle manufacturer, MY 2005
• Table 10: Vehicle manufacturers downsizing in Europe
• Table 11: Percent range of MPG improvement estimates per improved automobile technology
• Table 12: Comparison of vehicle manufacturers' activities in the main technology areas
• Table 13: Vehicle manufacturer life cycle analysis and notable achievements
• Table 14: How the manufacturers compare on what they say about recycling
• Table 15: Investing in renewables - who' s using what
• Table 16: Which vehicle manufacturers report CO2 emissions from logistics operations?
• Table 17: Vehicle manufacturers' green supplier programmes
• Table 18: Vehicle manufacturers' green dealer programmes
• Table 19: Vehicle manufacturers' ' green' badges
• Table 20: The Ranking: Vehicle manufacturers in the race for environmental success
• Table 21: Detailed chart of vehicle manufacturers and their scores
• Table 22: SWOT of Toyota in the race for environmental success
• Table 23: 2010 CO2 reduction goals: Toyota Motor Company
• Table 24: SWOT of Ford in the race for environmental success
• Table 25: Life cycle CO2 impact for typical vehicles: Ford Motor Company
• Table 26: PSA greenhouse gas emissions, 1995 and 2002 - 2006
• Table 27: PSA CO2 emissions (per vehicle) 1995 - 2006
• Table 28: Most fuel efficient diesel/gasoline vehicles on sale in France, 2006
• Table 29: SWOT of Honda in the race for environmental success
• Table 30: Honda' s environment statement
• Table 31: SWOT of Nissan in the race for environmental success
• Table 32: SWOT of BMW in the race for environmental success
• Table 33: SWOT of GM in the race for environmental success
• Table 34: GM' s Environmental Principles
• Table 35: Greening of the Supply Chain Project in China
• Table 36: SWOT of VW in the race for environmental success
• Table 37: SWOT of Renault in the race for environmental success
• Table 38: SWOT of Daimler in the race for environmental success
• Table 39: The environmental protection guidelines of the DaimlerChrysler Group
• Table 40: SWOT of Hyundai-Kia in the race for environmental success
• Table 41: Hyundai' s global environmental policy
• Table 42: SWOT of Fiat in the race for environmental success