Some of the world’s largest automotive and transportation manufacturers are failing to transition to low-carbon production, according to new research from the World Benchmarking Alliance (WBA). The alliance’s 2024 benchmark of 30 automotive manufacturers and 14 transportation manufacturers found that the majority have not committed to increasing investment in transitioning from internal combustion engines to electric or hybrid models. The companies, who produce products for the likes of Mercedes, Ford and Nissan, have only attributed 17% of their combined revenue to low-carbon sales. More than 80% of assessed automotive companies are failing to engage with workers and stakeholders about what the future should look like and how to ensure a just transition, WBA added. Only six of the companies, including Hyundai, Kia and Renault, have committed to phasing out fossil fuels by 2035. Sixty percent of companies scored at least 55 out of 100 on elements of their transition planning. Twenty of the assessed automobile manufacturers are headquartered in the East Asia and Pacific region, with 11 companies based in China, seven in Japan and two in the Republic of Korea. “Our research reveals a stark reality: most manufacturers remain anchored to outdated business models that jeopardise their ability to meet these critical climate targets,” said Vicky Sins, WBA’s Decarbonisation and Energy Transformation Lead. “While there are promising signs of transition planning on paper, real progress hinges on tangible actions – such as phasing out fossil fuel vehicles, investing heavily in low-carbon technology, and securing sustainable supply chains.”
