Audi collaborates with suppliers for CO2 reduction through more efficient procurement

02-Dec-2019 10:26 GMT
OEM Purchasing
Source: Audi

German carmaker conducted 30 workshops with its suppliers in 2018 to develop 50 measures which offer potential of CO2 reductions per car by 1.2 tons

Audi is working with its suppliers to reduce carbon dioxide (CO2) through more efficient procurement of raw materials used in production of vehicles, the company said in a press release today. In 2018, the German carmaker conducted 30 workshops with its suppliers to develop 50 measures which in total offer the potential to reduce CO2 per car by 1.2 tons. Audi expects significant potential for C02 reductions in closed material cycles, gradual increase in secondary materials, the use of recycled materials in plastic components, and the use of green electricity. The company plans to agree with its suppliers on the implementation of these measures, with aims to make them fully effective by 2025.

“Already in the first year of the CO2 Program, we identified 50 concrete measures with our partners that contribute to the consistent decarbonization of our company. We are also creating more transparency in the supply chain,” said Bernd Martens, member of board of management, responsible for Procurement and IT at Audi AG. Audi plans to conduct more workshops with its suppliers to identify additional potential of CO2 reduction.

Significance: Audi intends to make a positive contribution towards achieving the climate target set under Paris Agreement four years ago. The German carmaker is working towards CO2 neutrality on balance by 2050. Audi started its CO2 Program with the procurement of aluminium, as production of this material consumes a lot of energy. The company introduced an aluminum closed loop at its Neckarsulm plant in Germany in 2017. As part of the program, the aluminum-sheet offcuts produced in the press plant are returned directly to the supplier, where they are prepared and reprocessed. The carmaker then uses the new aluminium sheet produced in this way in its production. Audi claims to have saved 90,000 tons of CO2 through using this method. The company plans to expand the aluminium close loop to its other plants. The company is also exploring the possibility of increasing the proportion of components made of secondary aluminium.

Last year, Audi started including the use of green power (renewable energy) as an integral element for supplier agreements with battery-cell manufacturers. According to the carmaker, this inclusion is a fixed and binding component of all-new orders for the supply of high voltage battery cells. Before an order is placed, suppliers are required to submit an appropriate green power concept. Apart from this, Audi is sensitizing its direct suppliers regarding the use of green energy in the production of components at the sub-supplier level.