Driving Carbon-Neutral Value Chains in the Auto Industry

In a Forbes article, Navigant explore the impacts of Volkswagen’s carbon-neutral value chain goals

The sustainable manufacturing transformation will alter value chains into more complex and interconnected industrial ecosystems. The start of this transformation is already noticeable in the automotive industry. 

In a Forbes article, Viktorija Stojcheva, senior consultant at Navigant, explains how Volkswagen's (VW) goals for a carbon-neutral value chain are a strong driver for creating an industrial ecosystem.

Committed to the Paris Agreement goals, VW aims to transform its entire value chain. When scaled to its full portfolio, this could have a tremendous effect on suppliers, production plants, and customers globally. 

To achieve a carbon-neutral value chain, Stojcheva said, “increased value chain transparency, better compliance tracking, and sustainability standards as binding selection criterion on par with quality and price will incentivize suppliers to take climate action and lower the CO2 impact of their products.”

She notes that a fully carbon-neutral value chain requires an increase in process efficiency, implementation of renewables across the value chain, and circularity via closing material loops through things like recycling.

“VW has identified the opportunities arising from [the sustainable manufacturing transformation], and its ambition to reap the benefits could potentially bring huge advantages to other sectors that are part of VW’s industrial ecosystem,” said Stojcheva. 

Read the Forbes Article
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