In a recent press release, Porsche has shared next steps in furthering its efforts against CO2 emissions by demanding its nearly 1,300 suppliers exclusive use renewable energy to manufacturer its vehicle components.
This new policy applies to any and all contracts awarded to provide production material for new vehicle projects. Furthermore, any suppliers unwilling to switch to certified green energy will no longer be considered for contracts with Porsche moving forward. Uwe-Karsten Städter, member of the Executive Board for Procurement at Porsche AG, explains:
“Our battery cell suppliers have already had to use green energy since 2020. 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.”
This new measure is part of a larger, more ambitious goal surrounding Porsche’s value chain and relationship with suppliers. Porsche is striving to be carbon neutral throughout its supply chain by 2030.
What Does this Mean for its Suppliers?
Porsche’s supply chain currently accounts for about 20% of its emissions, but is predicted to rise to 40% by 2030. This will have major implications on Porsche’s overall carbon footprint. Therefore, like many major suppliers, they must assess the sustainability initiatives of the suppliers they work with.
Currently, all major Porsche manufacturing sites are already CO2 neutral in terms of operations, including its headquarters in Stuttgart, Germany. As of July 2021, all new supplier contracts will need to meet Porsche’s clean energy requirements to do any sort of business with the automaker.
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