German carmaker Porsche AG wants its roughly 1,300 series suppliers to use only renewable energy in the production of components for its vehicles as of July.
The company, part of Volkswagen Group, said last week that this requirement applies to any contracts awarded for the provision of production material for new vehicle projects.
"Our battery cell suppliers have already had to use green energy since 2020. And now we are taking the next important step: we stipulate that our series suppliers also use only renewable energy to produce our components, to help reduce CO2-emissions even further," said Uwe-Karsten Staedter, member of the executive board for procurement at Porsche.
Porsche aims to achieve carbon neutrality across the entire value chain by 2030. Currently, its supply chain accounts for around 20% of the carmaker’s total greenhouse gas emissions, but its share will increase to around 40% by 2030 because of the growing electrification of vehicles.
The company says that all of its large plants are currently carbon-neutral in terms of operations. It intends to invest more than EUR 1 billion (USD 1.2bn) in decarbonisation measures over the next 10 years.
(EUR 1.0 = USD 1.184)
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