Performance check automotive industry
An analysis of industry initiatives and sustainability reports
BMW, Daimler and VW are doing too little to meet their human rights and environmental responsibilities for their high consumption of raw materials. The three largest German car companies consume tens of millions of tons of steel, aluminum, copper and co. The analysis published by PowerShift and INKOTA takes a look at the sustainability reports of the three largest German car companies. No group has a detailed due diligence report. For many raw materials, the potential environmental and human rights violations are not reported at all or only very selectively. The raw materials sector is one of the economic sectors with the most human rights violations worldwide.
It remains unclear to what extent the companies actually have knowledge of their entire value chains. However, this knowledge is a prerequisite for verifying and ensuring the protection of the environment and human rights. BMW, Daimler and VW are still far from establishing public transparency about their value chains and the human rights due diligence process. With regard to the procurement of conflict minerals, US technology companies show that it is quite possible to act more transparently.
Instead of providing clear information, the three car companies refer in their sustainability reports, among other things, to membership in raw material initiatives, which in turn develop sustainability requirements. But these initiatives do not guarantee ecologically, socially and human rights responsible raw material production. Rather, it is to be feared that the car companies will outsource their responsibilities through membership in a raw materials initiative.
The analysis highlights the need for a comprehensive and effective human rights and environmental due diligence law across the value chain, which PowerShift and INKOTA are committed to as part of the Supply Chain Act initiative. In order to protect human rights as well as the climate and the environment, a reduction in the absolute consumption of raw materials by the automotive industry – and thus ultimately a reduction in the number of cars sold – is also urgently needed.
Note: The revised version of the study, December 2020, is presented here. The new version contains changes on pages 6, 14 and 32-33. Thank you for your understanding.
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