Sustainability also plays an important role in the automotive industry from an economic perspective. Electrification and the regulations governing battery use and disposal have a direct impact on product development, the use of materials and key investment decisions. For our English-language study, ‘Sustainability Value Creation in Automotive’, we surveyed executives from the automotive industry to find out what financial contribution sustainability-related measures are already making today and what potential they expect in the future. One finding: 83 per cent of the companies surveyed expect sustainability-related measures to contribute even more significantly to revenue growth in the future.
How, specifically, does sustainability generate financial added value?
Using specific examples, the study shows where companies are already realising economic benefits today. Battery recycling, for example, can reduce raw material costs by up to 35 per cent. Improvements in production cut energy costs by 20 to 30 per cent. Sustainability-focused products and electrified vehicle ranges are already contributing to double-digit growth rates. Sustainability is thus becoming an integral part of value creation.
Download the study now (in German only)
Why do many companies find it difficult to realise their full potential?
Although around 84 per cent of companies track the financial impact of their measures, fewer than half do so on a regular basis. As a result, there is a lack of reliable data on which to compare projects and justify sustainability investments. The study makes it clear that, for example, inconsistent data analysis and a lack of financial transparency obscure the economic benefits of many measures.
Where companies see the greatest economic benefits
Companies see the greatest economic benefits, in particular, in material efficiency, the circular use of battery raw materials, energy optimisation, and sustainable and electrified product ranges. The more electric vehicles there are on the road, the more important the management of battery raw materials and the origin of materials become for the automotive industry. Those who reuse raw materials, transparently document their material usage and better secure their supply chains can significantly reduce costs and better meet regulatory requirements.
How does the study benefit decision-makers?
The study shows how companies can systematically link sustainability measures to financial value drivers, develop robust business cases and integrate sustainability more closely into existing financial and management processes. In doing so, it helps decision-makers to evaluate investments more effectively and to demonstrate the economic contribution of sustainability transparently.
Your contacts
Dr. Andreas Ries
Partner, Global and Germany Head of Automotive
KPMG AG Wirtschaftsprüfungsgesellschaft
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