Sustainability in the automotive industry is increasingly focused on the development and use of electric vehicle battery materials and coatings. As the shift toward electrification accelerates, manufacturers are prioritizing environmentally friendly practices to minimize the ecological footprint of their products. This includes enhancing the recyclability of materials, reducing energy consumption during production and ensuring compliance with stringent environmental regulations.
One of the critical areas of innovation is in battery materials. Manufacturers are exploring advanced coatings, adhesives and sealants that improve the efficiency and longevity of EV batteries while also facilitating easier recycling processes. For example, debondable adhesives are being developed to simplify battery disassembly, thus enhancing recyclability and reducing labor costs associated with recycling operations.
Coatings also play a vital role in the sustainability of EVs. Innovations in functional coatings can improve battery performance and safety by providing necessary thermal management and fire protection properties. Additionally, coatings that protect electronic components from electromagnetic interference are essential as the automotive industry integrates more advanced driver assistance systems (ADAS).
As regulatory pressures increase, automotive manufacturers are investing in sustainable practices that not only comply with emerging legislation but also drive cost efficiencies. By leveraging life cycle assessments (LCAs) and focusing on sustainable product development, the industry aims to balance performance, safety and environmental responsibility.
To learn more, we spoke to Peter Votruba-Drzal, PPG vice president, global sustainability, and Thierry Destruhaut, PPG customer sustainability business partner, Automotive OEM Coatings.
Key takeaways:
- Use of life cycle assessments: PPG assesses the environmental impact of its products and operations through life cycle assessments (LCAs), providing a comprehensive view of the environmental effects associated with each stage of the product life cycle.
- 2030 sustainability goals: PPG has established specific sustainability targets for 2030, including a 50% reduction in scope 1 and 2 greenhouse gas emissions, a 30% reduction in scope 3 GHG emissions, and achieving 50% of sales from sustainably advantaged products. They also aim to ensure that 100% of process waste is reused, recycled or recovered.
- Innovative automotive solutions: PPG is developing products that support sustainability in the automotive industry, such as the PPG ENVIRO-PRIME® EPIC 200X solution, which reduces energy and material usage while providing corrosion protection. They also have precision application technology that minimizes waste and CO2 emissions during the painting process.
- Regulatory compliance and product development: PPG is adjusting its product designs to comply with regulations related to ADAS and battery-electric vehicles (BEVs). The company is focused on enhancing recyclability and meeting new sustainability reporting requirements to ensure its products align with regulatory standards.
The following is an edited transcript of the conversation.
Sustainability
Peter Votruba-Drzal
S&P Global Mobility: How do you assess the overall environmental impact of your products and operations within the automotive supply chain, and what metrics do you use to measure sustainability performance?
Peter Votruba-Drzal: We assess the overall environmental impact of our products and operations with the use of life cycle assessments (LCAs). This provides our customers with a full view of the environmental impacts associated with all the stages of the product life cycle.
We report on the sales performance of sustainably advantaged products, which are defined using PPG's proprietary internal methodology that validates product attributes and their contribution towards the UN Sustainable Development Goals. In automotive, the paint shop is one of the most energy-intensive parts of our customers’ operations. Our products provide sustainably advantaged attributes not only in the longevity of coated item but also can provide sustainable benefits by reducing use of energy, water, waste and labor. By measuring the performance of sustainably advantaged products, it provides our stakeholders visibility into our progress in meeting our vision to be our customer’s first choice for their coatings, paints and specialty products.
What initiatives are you implementing to promote sustainability in product development and operations, especially regarding sustainable technologies and resource usage? How do you assess the environmental impact of your testing solutions, and what metrics are used to measure sustainability performance in this area?
We are committed to using our resources efficiently and minimizing environmental impacts throughout our value chain while simultaneously reducing operating costs. Aligned with our 2030 sustainability targets, we are focused on several key areas. Firstly, we aim to decarbonize our operations, which includes reducing emissions across PPG operations, our supply chain and customer interactions. Additionally, we recognize the importance of building climate change resilience in our physical assets to ensure their longevity and functionality in a changing environment.
Another critical aspect of our strategy involves addressing the social and environmental impacts associated with chemicals. We are dedicated to managing both the real and perceived effects to promote a safer and more sustainable approach. Furthermore, we acknowledge water as a shared resource and are committed to its responsible management, ensuring that we interact with this vital resource in a sustainable manner.
To achieve our goals by 2030, we have set ambitious targets. We aim for a 50% reduction in scope 1 and 2 greenhouse gas emissions, alongside a 30% reduction in scope 3 GHG emissions. Our commitment extends to achieving a 25% reduction in waste intensity and ensuring that 100% of our process waste is directed toward reuse, recycling or recovery. Additionally, we are targeting a 15% reduction in water intensity at our priority sites located in water-stressed communities.
How do your products and solutions promote sustainable practices within automotive testing and development, and what features support sustainability goals? Can you discuss any recent partnerships or collaborations formed within the automotive sector to advance sustainability initiatives, and what tangible outcomes have resulted from these efforts?
The automotive industry continues to undergo a shift toward electrification and the use of different substrates to meet new requirements. We are helping our customers adapt to these changes with our range of innovative, cost-saving electrocoat solutions.
An example of helping OEM customers reduce their total material and energy use is our award-winning PPG ENVIRO-PRIME® EPIC 200X solution, which enhances corrosion protection for automotive bodies while significantly reducing energy and material requirements. At Toyota’s Cambridge, Ontario plant, the EPIC 200X product and application process enables a total reduction of 3,500 metric tons of CO2 emissions per year. Coating each vehicle requires 0.6 kg less product, while the improved application process saves 5.6 million kWh of energy and 1.8 million gallons of water per year.
In addition, PPG’s precision application technology is an overspray-free coating system designed to streamline the painting of two-tone roof vehicles. The process in partnership with Dürr, which is already being used by a premium automotive OEM, applies a specially designed decorative coating in a simplified two-step process that does not require manual masking as required in conventional two-tone painting PPG’s innovative application enables both layers to be applied overspray-free, producing crisp paint edges without the need for manual masking.
In addition to reducing time on the paint line, the precision application process helps our customers reach their sustainability goals by avoiding waste generation from paint and masking products, as well as reducing CO2 emissions by decreasing the need for energy intensive air filters that handle overspray. PPG’s in-house process model shows that the combined benefits of using our precision application system result in a CO2 emissions reduction of up to 17% compared to the legacy system.
What long-term sustainability goals have you set, and how do you plan to achieve these objectives while balancing cost considerations and market competitiveness?
In 2023, PPG became the first US-based coatings manufacturer to receive validation of its emissions reduction targets from the Science Based Targets initiative (SBTi). PPG has committed to reduce absolute emissions from its own operations (scope 1 and 2) by 50% by 2030 from a 2019 base year. It has also committed to reduce absolute scope 3 GHG emissions from purchased goods and services, processing of sold products, and end-of-life treatment of sold products by 30% within the same timeframe.
To meet the 2030 emissions reduction goals, PPG developed a decarbonization roadmap. This includes PPG energy-efficiency investments in our manufacturing facilities and increased use of renewable energy to replace our current sources of electrical energy supply. For example, in December 2024, we completed an on-site solar installation at our Caivano, Italy, facility. The 1.5 megawatt solar installation represents a CO2 emissions reduction of approximately 390 metric tons annually. The emissions avoided each year by the solar installation are approximately equivalent to driving a passenger car for 990,000 miles.
When considered together with a previously installed combined heat and power unit, the site reduced annual utility costs by approximately 15%. Both projects are part of our ongoing partnership with Grastim, a developer of high-efficiency energy generation solutions. The successful implementation of these technologies at Caivano serves as a model for other PPG manufacturing facilities working to effectively reduce the environmental impacts of their operations.
In addition to its science-based emission targets, PPG has established several other sustainability goals for 2030. One of the primary objectives is to achieve 50% of sales from sustainably advantaged products, reflecting a commitment to environmentally friendly offerings. Furthermore, PPG aims for a 15% reduction in water intensity at priority sites, using 2019 as the baseline year. The company is also targeting a 25% reduction in waste intensity from the same baseline.
A crucial aspect of PPG’s sustainability strategy is the commitment to reuse, recycle, or recover 100% of process waste. Additionally, PPG plans to invest $15 million in the COLORFUL COMMUNITIES® initiative from 2015 to 2030, reinforcing its dedication to community engagement and support. The company is also focused on ensuring that 100% of key suppliers are assessed against sustainability and social responsibility criteria, promoting responsible practices throughout its supply chain.
Employee safety is another priority, with the goal that 100% of employees go home safely each day. Lastly, PPG is aiming for a 5% annual reduction in spill and release rates, further enhancing its environmental stewardship.
Environmental regulations
Thierry Destruhaut
Considering the REACH regulation and the End-of-Life Vehicle Directive, what specific innovations have you integrated into your products to help your clients comply? How have these compliance requirements influenced your pricing strategy for these solutions?
Thierry Destruhaut: It is too early to comment on the specifics of the REACH regulation revision and End of Life Vehicle Directive, as they have not yet been finally agreed upon.
We are proactively developing products that enhance vehicle recyclability. One notable innovation is our debondable adhesives, which facilitate easier, faster and more efficient battery recycling. These adhesives are designed to simplify the disassembly process, thereby reducing labor costs and improving the overall efficiency of recycling operations.
As the EU mandates ADAS in new vehicles, how has PPG adjusted its product design to accommodate these changes, and what cost implications do you foresee for your clients in implementing these features?
With the EU’s mandate for advanced driver assistance systems (ADAS) in new vehicles, PPG has significantly adjusted its product design, simulation and testing processes. We are focusing on designing functional coatings that enhance the performance of lidar and radar detection systems. These coatings are crucial for ensuring accurate and reliable sensor functionality, which is essential for ADAS.
Additionally, we are developing coatings to protect the vehicle’s electronic components from electromagnetic interference (EMI) and radio frequency interferences (RFI). Another key innovation is our easy-to-clean clearcoats for bumpers, which help reduce wet film attenuation in adverse weather conditions.
The cost implications include initial investments in these advanced coatings and protection systems. However, these costs are offset by the long-term benefits of enhanced vehicle safety and performance. We anticipate that the integration of these features will lead to a reduction in maintenance costs and improved vehicle longevity, ultimately providing a favorable return on investment for our clients.
How do the proposed EU battery regulations impact your approach to developing materials for battery-electric vehicles (BEVs), and what strategies are you considering to help your clients manage the potential increase in costs associated with compliance?
The proposed EU battery regulations have a significant impact on our approach to developing and testing solutions for materials used in BEVs.
We are focusing on creating new generations of coatings, adhesives and sealants that support two key elements of BEV technology. Firstly, we aim to enhance battery manufacturing with high productivity, low application energy and high conformality. Secondly, we are committed to supporting battery performance and longevity with the necessary dielectric, thermal management and fire protection properties.
To help our clients manage the potential increase in compliance costs, we are implementing strategies that emphasize efficiency and sustainability. By optimizing our production processes and utilizing advanced materials, we can reduce application energy and improve productivity. Our goal is to provide solutions that not only meet regulatory requirements but also offer economic advantages to our clients.
What measures are you implementing to meet the new sustainability reporting requirements for your products, and how might these initiatives affect the pricing of your solutions for clients, especially in light of anticipated compliance costs?
To meet the new sustainability reporting requirements in the EV battery materials segment, PPG has an in-house developed LCA tool. This tool enables us to provide detailed product carbon footprints and full life-cycle reports to our battery materials and automotive OEM and tiers customers.
Our Cradle-to-Gate product carbon footprint (PCF) and Life Cycle Assessment (LCA) tools are fully certified under ISO14067/14040/14044 by accredited certification body. This certification ensures that our reports are reliable and compliant with international standards.
The implementation of these sustainability initiatives has influenced our pricing strategy. PPG has minimized the cost associated with developing and maintaining the LCA tool through internal capabilities. Unlike others, PPG developed its tool internally using a low-cost platform. This internal capability enables us to deliver ISO-compliant reports quickly and efficiently. This allows us to offer these reports at a competitive price, ensuring that our clients can meet their sustainability reporting requirements without incurring excessive costs. Third-party verification ensures customer confidence in our PCF/LCA reports, making them a valuable asset.
Are there any upcoming regulations or legislation that you believe will significantly impact the development and pricing of your products in the near future, similar to the shifts driven by the EU Green Deal aimed at reducing greenhouse gas emissions?
Upcoming regulations, particularly those related to the end-of- life management of EV batteries and plastic parts of vehicles, are expected to significantly impact the development and pricing of our product simulation and testing solutions. These regulations will require new technologies, including coatings and adhesives, designed to support disassembly, repair, reuse and recycling of batteries and battery cells. Additionally, they will necessitate solutions that promote the recycling or even circularity of coated plastic parts in the automotive sector.
To address these challenges, we are investing in research and development to create innovative products that meet these regulatory requirements. Our focus is on developing sustainable and cost-effective solutions that facilitate compliance while minimizing the financial impact on our clients.
