BNEF Brief: Auto Supplier Overlap Helps with Sustainability

The video discusses how major automakers like Renault and General Motors are reducing emissions in their supply chains. It highlights the importance of targeting suppliers due to the size and complexity of the supply chain, which emits significantly more CO2 than the automakers themselves. Automakers are using auditing and supplier selection to ensure compliance with sustainability practices. Suppliers risk losing business if they don't comply. The benefits for automakers include cost savings and meeting consumer demand for sustainable products, providing a competitive advantage.

Why are automakers focusing on their supply chains to reduce emissions?

• Because the supply chain emits less CO2 than the automakers themselves.

• Due to the size, complexity, and resource intensity of the supply chain.

• To increase the number of suppliers.

• To reduce the number of vehicles produced.

What are the two main strategies automakers use to promote sustainability in their supply chains?

• Expanding market reach and increasing sales.

• Auditing and supplier selection.

• Reducing vehicle prices and increasing advertising.

• Increasing production and reducing costs.

What risk do suppliers face if they do not adopt sustainability practices?

• They might have to increase their prices.

• They could lose business and contracts.

• They may have to hire more employees.

• They could face legal action.

What is one of the main benefits for automakers in adopting sustainable practices?

• Decreased consumer interest.

• Increased production costs.

• Higher vehicle prices.

• Cost savings from reduced resource consumption.

How does consumer interest affect automakers' sustainability practices?

• Consumers are indifferent to sustainability.

• Consumers prefer non-sustainable vehicles.

• Consumers only care about vehicle price.

• Consumers increasingly care about sustainably made vehicles.