Sustainability in the automotive industry is becoming increasingly important as the sector works to address its impact on the environment.
One key focus is the use of lightweight materials, which can improve fuel efficiency and reduce emissions throughout a vehicle's life. Manufacturers are looking for alternative raw materials and developing designs that minimize environmental impact. This includes using recyclable materials and making products easier to recycle at the end of their life.
Another important aspect is the adoption of circular economy principles. This means extending the lifecycle of materials and reducing waste. Automakers are implementing strategies, such as recycling old vehicle parts and creating systems where materials can be reused in new vehicles. Partnerships within the industry are also essential for advancing recycling technologies and sourcing sustainable materials.
Additionally, regulatory pressures and consumer demand for eco-friendly products are pushing the automotive sector to adopt sustainable practices. As companies work to meet emissions targets and improve their sustainability efforts, the move toward a greener automotive industry is becoming crucial for long-term success and compliance with environmental standards.
To learn more, we spoke to Fabian Grote, Head of Global Technical Marketing Mobility at Covestro.
Key takeaways:
Climate neutrality targets: Covestro is targeting climate neutrality for Scope 1 and 2 emissions by 2035 and for Scope 3 emissions by 2050. They measure emissions using the greenhouse gas (GHG) protocol and plan to launch digital life cycle assessments for approximately 50,000 products by late 2025.
Sustainability in operations: The company integrates sustainability into its operations, focusing on circularity. Initiatives include advanced manufacturing technologies and recycling efforts, such as a new facility in Shanghai for compounding post-consumer recycled materials.
Product development practices: Covestro's automotive solutions include durable polycarbonate materials and design-for-recycling principles. They are developing mono-material designs and exploring chemical recycling partnerships to convert old materials into new automotive parts.
Long-term emission reduction goals: Covestro aims for a 30% reduction in Scope 3 emissions by 2035 and overall climate neutrality by 2050. They have already reduced specific emissions by half since 2005 and are increasing their renewable energy sourcing to support these goals.
The following is an edited transcript of the conversation.
S&P Global Mobility: How does Covestro 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?
Fabian Grote: At Covestro, we are targeting climate neutrality for Scope 1 and 2 by 2035 and for Scope 3 by 2050. We measure these direct and indirect emissions according to GHG protocol. We make good progress on all fronts by constantly improving our manufacturing processes, securing power purchase agreements for green energy and utilizing more alternative raw materials for our products. We also recently launched TÜV certified digital life cycle assessments, which will make environmental data ‘from cradle to gate’ available for approximately 50,000 products within the second half of 2025. These measures are implemented across our entire portfolio, including materials for automotive applications. We also run various additional and specific initiatives, such as car-to-car recycling. All that is on top of the general qualities of our materials, which help make cars lighter or are part of key components in electric vehicles, such as batteries, cables and connectors.
What specific initiatives are you implementing to promote sustainability in your product development and operational practices, particularly in relation to eco-friendly technologies and resource usage?
Sustainability is embedded in our operational DNA and circularity is our corporate vision. This shows across every part of our organization. For example, we leverage digital research and development capabilities and life cycle assessment (LCA) tools to optimize product development. We develop and implement advanced manufacturing technologies for chlorine, TDI or MDI production. Our commitment extends to chemical and mechanical recycling initiatives, exemplified by efforts for car-to-car recycling and our new plant for compounding post-consumer recycled materials in Shanghai. Our efforts also are apparent in our product portfolio, which includes the CQ series that contain a minimum of 25% alternative raw materials, and our RE, RP, and R-series polycarbonates, featuring up to 89% sustainable materials content.
How do your products and solutions promote eco-friendly practices within automotive testing and development, and what features support sustainability goals?
Our eco-friendly practices in automotive development center on durable polycarbonate solutions and design-for-recycling principles. We promote mono-material designs, particularly in headlamps, to facilitate easier recycling, and we research recycling technologies for various materials in our portfolio. We actively develop closed loops with partners, such as Neste and Borealis, with whom we make new car parts from old tires via chemical recycling. When mono-material solutions are not feasible, we provide optimized materials with reduced process emissions through technologies, such as Direct Coating or waterborne, partly bio-based coating technology. Our focus on lightweight materials extends vehicle range and reduces use-phase emissions, particularly crucial for electric vehicles.
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?
We pursue circularity in the automotive sector with various initiatives and partnerships. Among the most recent ones are the mentioned closed-loop system with Neste and Borealis, where we turn old tires into new car parts via chemical recycling, achieving up to 72% attributed recycled content in our RP product series. We are also collaborating with Ausell, GIZ, VW and NIO in mainland China for headlamp recycling, and participating in the NALYSES project with HELLA, BMW and other partners for sustainable headlamp design.
What long-term sustainability goals have you set, and how do you plan to achieve these objectives while balancing cost considerations and market competitiveness?
Covestro has established clear sustainability milestones: operational climate neutrality by 2035, 30% reduction in Scope 3 emissions by 2035, and full climate neutrality by 2050. Progress is palpable: We have already halved our specific emissions from our 2005 baseline and source 16% of our global electricity from renewables, and we just recently announced that we aim for energy consumption per ton of product to be 20% lower by 2030 than it was in 2020. All these efforts need investments, but they also increase the competitiveness of our manufacturing and our products manifold. Because we are at the forefront of offering products with reduced carbon footprint or higher alternative raw material content, we are and remain to be the raw materials provider of choice for our customers. This transformation towards an ever more sustainable and circular economy is a marathon, not a sprint, requiring further and continuous investment in green energy, process efficiency, supply chain optimization, R&D, recycling technologies or alternative raw materials. We acknowledge it comes with challenges, but we have to tackle them head on and together along the value chain — since there is no Plan(et) B.
