In a recent ranking of 18 global automakers conducted by Lead the Charge, Tesla, Ford, and Volvo have emerged as the top three companies in terms of efforts to eliminate carbon emissions, environmental harms, and human rights violations from their supply chains. This ranking highlights the ongoing challenges faced by the industry, with Toyota lagging near the bottom of the list.
Lead the Charge, a coalition of climate, environment, and human rights organizations, including the Sierra Club and Public Citizen, compiled these rankings. This marks the fourth edition of the coalition’s annual assessment of automakers’ supply chain practices. Over the years, there has been a significant improvement in automakers’ scores on supply chain environmental and human rights impacts. However, no company has yet achieved a score of 50 percent on clean supply chains, with Tesla leading the pack at 49 percent.
Five automakers – Ford, Volvo, Tesla, Mercedes, and Volkswagen – are leading the charge in cleaning up their supply chains. These companies have made notable progress in decarbonization efforts, with Volvo and Mercedes investing in steel and aluminum decarbonization. Additionally, Mercedes, VW, and Tesla have released detailed reports on raw materials, showcasing their commitment to transparency.
The report also highlights the advancements made in the electric vehicle (EV) sector. EVs have shown significant progress in decarbonization, recycling, transparency, and responsible sourcing. Despite challenges such as partisan hostility and decreasing subsidies, EVs continue to be a preferred choice for consumers.
Chinese automakers, particularly Geely and BYD, have taken significant steps to improve their rankings. These companies have implemented best practices and new codes of conduct to enhance their material supply chains.
On the other hand, Toyota and Chinese state-owned car companies like GAC and SAIC are struggling to make progress in key areas such as steel and aluminum decarbonization and responsible mineral sourcing. While Toyota has announced plans for several new EV models, it still has a long way to go in terms of climate and human rights record compared to industry leaders like Tesla and Ford.
Overall, the rankings underscore the ongoing efforts of automakers to address environmental and human rights issues in their supply chains. The progress made by leading companies sets a benchmark for the industry, encouraging others to follow suit in creating a more sustainable and responsible automotive sector.