The World Benchmarking Alliance Climate and Energy Benchmark measured 44 of the world’s most influential automotive and transportation manufacturers on their alignment to a low-carbon world.
The 2024 assessment combines the ACT (Accelerate Climate Transition) methodologies and WBA social and just transition indicators. This approach provides a holistic assessment of companies’ efforts to achieve a low-carbon transition that is just and equitable.
Five key findings
The 2024 Climate and Energy Benchmark of automotive and transportation manufacturers reveals valuable insights about the performance of 30 automotive manufacturers and 14 transportation manufacturers (aircraft, ships, trains, and trucks and buses).
Transition of the automotive sector is stalling as companies fail to scale their electrification commitments globally
Driven by supportive policies and growing momentum, electric vehicles (EV) sales doubled from 7% in 2021 to 14% in 2023. Yet, on the long-term, the transition is at peril. No automotive manufacturer is determined to phasing out fossil fuel vehicles from their production lines by 2035. Commitments to full electric sales are only made for specific markets and by six companies. As result only about 40% of vehicles in 2035 are expected to be fully electric according to company planning, far below the 100% needed to meet the 1.5°C climate target.
Automotive manufacturers are not financially committed to a low-carbon future
Despite planning for a low-carbon transition, there is little evidence of financial commitment. Only 7 companies, representing 28% of total vehicle production, have committed to increasing low-carbon investments by 2025. Of these, only two have disclosed financial commitments at the level needed for a low-carbon transition. Lacking sufficient low-carbon investments to facilitate change, the market is lagging. In 2023, automotive manufacturers relied primarily on fossil fuel vehicle sales, with low-carbon vehicle revenue averaging only 17% for the 9 companies that disclosed this data. Without substantial investments and strategic financial planning, it is unclear how automakers will navigate to a low-carbon future.
Automotive companies must urgently strengthen oversight of battery suppliers to achieve complete decarbonisation
In a 1.5°C world, battery production will dominate upstream emissions from electric-vehicle production. Only two companies - representing 6% of the EV market - require suppliers to meet 1.5°C-aligned emissions goals, and none have specific targets for battery suppliers. Meanwhile, 12 companies, accounting for 30% of the EV market, are advancing innovation and collaboration with suppliers to support EV production. Eleven companies, covering 60% of the global EV market, are moving to in-house battery production, potentially boosting low-carbon efforts through tighter control. To drive full decarbonisation of the sector, in-house production needs to be rationalised, while external production should include explicit emissions targets.
Without an increased focus on reskilling, the automotive sector remains unprepared for a low-carbon future and risks leaving at least 1.3 million workers behind
Producing EVs requires different skills than what has been needed for ICE vehicles. Only four (13% of) companies are committed to reskilling their existing workforce and none show that they have a process to understand what skills they lack to successfully decarbonise. While many offer educational programs for their staff, 1.3 million workers are currently employed by the (13) companies scoring zero on all fundamentals of re-and up-skilling their workforce for a just transition. Automotive manufacturers lack the commitments, processes, and educational programs that ensure they have the skills they need to be successful in a decarbonised future.
More ambition needed from transportation manufacturers to address the decarbonisation challenges ahead
Technological uncertainty and reliance on long-lived assets from transportation manufacturers - building ships, trucks, trains, and aircraft - result in a more challenging path to decarbonisation. However, their response is subdued. In 2023, low-carbon R&D across all companies accounted for just 5% of total research spending, despite its critical role for developing the necessary clean technologies. Only three companies have a client engagement strategy covering more than 90% of scope 3 emissions, missing out on an important lever for achieving sector-wide decarbonisation as the manufacturer products will be decades in operation. A full transport-system transformation is therefore dependent on transportation manufacturers increasing their ambition.
Find out the performance of the automotive and transportation manufacturers
View rankingWhere are the 44 companies headquartered?
Locations
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Title: General Motors
Place: United States
Description: -
Title: Great Wall Motor Company
Place: China
Description: -
Title: Guangzhou Automobile Group
Place: China
Description: -
Title: Honda Motor
Place: Japan
Description: -
Title: Hyundai Motor
Place: Korea, Rep.
Description: -
Title: Mahindra and Mahindra
Place: India
Description: -
Title: Mazda
Place: Japan
Description: -
Title: Nissan Motor
Place: Japan
Description: -
Title: Renault
Place: France
Description: -
Title: SAIC Motor
Place: China
Description: -
Title: Subaru Corporation
Place: Japan
Description: -
Title: Suzuki
Place: Japan
Description: -
Title: Tesla
Place: United States
Description: -
Title: Toyota Motor Corporation
Place: Japan
Description: -
Title: Geely Holding
Place: China
Description: -
Title: Volkswagen AG
Place: Germany
Description: -
Title: Tata Motors
Place: India
Description: -
Title: Mitsubishi Motors Corporation
Place: Japan
Description: -
Title: JAC Motors
Place: China
Description: -
Title: Kia
Place: Korea, Rep.
Description: -
Title: Stellantis
Place: Netherlands
Description: -
Title: Chery Holding Group
Place: China
Description: -
Title: Mercedes-Benz
Place: Germany
Description: -
Title: Airbus
Place: France
Description: -
Title: Alstom
Place: France
Description: -
Title: China State Shipbuilding
Place: China
Description: -
Title: CRRC Corporation
Place: China
Description: -
Title: Hanwha Ocean
Place: Korea, Rep.
Description: -
Title: Fincantieri
Place: Italy
Description: -
Title: Korea Shipbuilding & Offshore Engineering
Place: Korea, Rep.
Description: -
Title: PACCAR
Place: United States
Description: -
Title: Boeing
Place: United States
Description: -
Title: Volvo AB
Place: Sweden
Description: -
Title: Comac
Place: China
Description: -
Title: Daimler Truck
Place: Germany
Description: -
Title: Scania AB
Place: Sweden
Description: -
Title: Stadler Rail
Place: Switzerland
Description: -
Title: BAIC
Place: China
Description: -
Title: BMW
Place: Germany
Description: -
Title: BYD
Place: China
Description: -
Title: Changan Automobile
Place: China
Description: -
Title: FAW
Place: China
Description: -
Title: Dongfeng Motor Group
Place: China
Description: -
Title: Ford
Place: United States
Description:
Further reading
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Insights Report
This report builds on the above mentioned key findings in detail and drives further into the module level summaries
See insights report
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Technical FAQs
These FAQs explain technical aspects of how the ACT methodologies are used to assess companies in high emitting sectors and create WBA’s Automotive and Transportation Manufacturers Benchmark.
See FAQs
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Benchmark data set
Our 2024 Automotive and Transportation Manufacturers Benchmark measures the world’s 44 most influential companies in the sector on their alignment with the Paris Agreement goal of limiting global warming to 1.5° C and their contributions to a just transition. This data sheet compiles company-level information, module and indicator scoring.
See datasheet
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Press release
Read or download the 2024 Automotive and Transportation Manufacturers Benchmark news announcement
See press release