1、AUTOMOTIVE SUSTAINABILITY REPORT2023 DATAEnvironmental performance Social performance Economical performance2THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERSCONTENTS3 FOREWORD4 2023 SUSTAINABILITY SUMMARY6 INTRODUCTION16 CHAPTER 01:ENVIRONMENTAL PERFORMANCE24 CHAPTER 02:SOCIAL PERFORMANCE30 CHAPTER 03
2、:ECONOMIC PERFORMANCE35 SIGNATORIES This years report is a waymark shedding light on how our industry has transformed over the past 25 years and signposting the road to future success.We look forward to working with the new government and its fresh policy agenda which will be pivotal to the next 25
3、years of success.CONTENTS3THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERSA quarter of a century ago,the UK automotive industry made clear its commitment to sustainability with the publication of SMMTs first annual sustainability report.As consecutive reports over the following 25 years have shown,the
4、 industry has driven sustained success in social,environmental and business terms making production more efficient,reducing waste,and sourcing energy from renewables.The result is a major reduction in the carbon cost of vehicle production and the 25th edition of this report shows a significant miles
5、tone has been reached,with direct CO2 emissions per vehicle manufactured down by more than half since 1999.It is an achievement that comes through long-term dedication and grit,and against a backdrop of challenges the financial crash,Brexit,Covid-19 and the major global supply chain disruption that
6、followed.2023 saw significant declines in CO2 emissions,energy and water usage as Britains factories turned out their highest volumes in five years,exceeding one million vehicles.But last year was also momentous for the huge investments secured in our net zero transition,with almost 24 billion annou
7、nced to produce a new generation of zero emission vehicles,electric batteries and components in the UK.These position our industry well for the future.Such growth is the latest chapter in our green transition but its even more critical amid fierce global competition between rival countries seeking t
8、o attract international investment to their own industries.Maintaining a competitive edge is becoming harder but those commitments in 2023 underline the UK automotive industrys global appeal with a renowned R&D expertise,a highly skilled and flexible workforce,our first-class products and famous bra
9、nds,and our economic openness.Industry cannot,however,rest on our laurels,nor can we alone deliver success.Collaboration between our sector and government,with the whole gamut of adjacent industries and stakeholders,is essential.Automotive can be the driving force behind Britains green growth agenda
10、 but we need a suitably ambitious industrial strategy,one that delivers our long-term sustainability goals.This includes clean and affordable energy,strong free trade agreements which provide access to critical raw materials,enhancing our zero emission supply chains,and a skilled up workforce thats
11、fit for a greener future.Implement these measures and a million EVs will be rolling off our production lines every year by 2035,bringing massive environmental,economic and social benefits with them.This years report is a waymark,therefore,shedding light on how our industry has transformed over the p
12、ast 25 years and signposting the road to future success.We look forward to working with the new government and its fresh policy agenda which will be pivotal to the next 25 years of success.Mike Hawes Chief ExecutiveThe Society of Motor Manufacturers and Traders(SMMT)LETTER FROM THE CEOFOREWORD4THE S
13、OCIETY OF MOTOR MANUFACTURERS AND TRADERS2023 SUSTAINABILITY SUMMARYSUMMARYSINCE 19992023:ENVIRONMENTALTotal Scope 1&2 energy down-55%Lost time incidents down-91%VOC emissions down-53%Scope 1&2 energy per vehicle down-33%Water per vehicle down-42%CO2 per vehicle down-54%Manufacturing waste to landfi
14、ll down-99%Exhaust emission NO2 down-78%Exhaust emission particulates down-89%Average new car tailpipe CO2 emissions down-2.2%Scope 1&2 CO2 emissions down-5.1%Scope 1&2 CO2 per vehicle down-18.2%Overall energy use down-4.8%Energy per vehicle produced down-18.0%Overall water use down-2.1%Water per ve
15、hicle produced down-17.7%46GWh of on-site renewable generation-99%COCO2 2COCO2 2COCO2 25THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERSSUMMARY2023:SOCIAL2023:ECONOMIC813,000 sector dependent jobs 131,447 training days delivered to staffLost time incidents down-14.3%New apprentices and trainees up 40.
16、8%Proportion of employees that are women rises to 14.3%21%more new zero emission vans sold17.8%more new zero emission cars soldManufacturing turnover up 19.4%Manufacturing GVA up 20.5%Engine production up 9.4%Car&CV production up 17%New car&CV registrations up 18.4%2023 NEW6THE SOCIETY OF MOTOR MANU
17、FACTURERS AND TRADERSINTRODUCTION6THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERSIntroductionThis year marks the 25th anniversary of SMMTs annual sustainability report.In the years since this report began,UK automotive companies specialising in manufacturing,remanufacturing,supply chain,logistics,R&D
18、 and aftermarket have demonstrated a clear,ongoing commitment to improve their social,environmental and economic sustainability.7THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERSINTRODUCTION7THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERSSMMTs first sustainability report was published in 2000,presenting
19、 automotive sector data for 1999 and providing a clear industry commitment to make year-on-year and long-term progress across a variety of sustainability metrics.1 At the time,the key sustainability challenges for the sector were identified as:the strength of sterling against the Euro the impending
20、introduction of the Climate Change Levy,and the UKs adoption of the EU End of Life Vehicle DirectiveSubsequent SMMT sustainability reports,published each year,have demonstrated and quantified the ongoing progress of the automotive industry.And while the number and makeup of signatories to our annual
21、 report has grown and evolved over the years,companies like BMW,Ford,Nissan,Bentley,Toyota,Unipart and Vauxhall(Stellantis)have provided data each year,every year since the reports inception.Most signatories to this report are certified to ISO 14001,which provides a framework to design and implement
22、 an Environmental Management System(EMS)and continually improve environmental performance.By adhering to this standard,organisations can ensure they are taking proactive measures to minimise their environmental footprint,comply with relevant legal requirements,and achieve their environmental objecti
23、ves.2AUTOMOTIVE SUSTAINABILITY REPORT2023 DATAEnvironmental performance Social performance Econmical performance1 https:/www.smmt.co.uk/wp-content/uploads/1st-Sustainability-report.pdf2 https:/www.iso.org/standard/60857.html8THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS8THE SOCIETY OF MOTOR MANUFAC
24、TURERS AND TRADERS25 YEARS OF TRANSFORMATION AND CHANGEOver the past 25 years the UK has produced 38.6 million vehicles,of which 28.5 million(73.7%)have been exported.During this period,the sustainability progress made by the industry has coincided with a dramatic change in the UK automotive ecosyst
25、em.Back in 1999,when our first sustainability report was published,just under 2 million vehicles were produced by a dozen UK-based manufacturers,eight of which exceeded 100,000 units a year.62%of UK-built vehicles were exported overseas,with the remainder accounting for 28%of domestic registrations.
26、Today,the UK is home to a breadth of volume,premium and high-value,small volume specialist manufacturers,with 4 manufacturers producing more than 100,000 vehicles a year.While the number of UK-manufactured vehicles has dropped to half of what it was in 1999,2023 production exceeded a million units f
27、or the first time since 2019,rising by 17.0%.Exports still dominate,accounting for 77.1%of production in 2023.At the time of SMMTs first sustainability report,all UK vehicles produced and registered were petrol(86%)or diesel(14%).However,this was also the year in which the Toyota Prius,the first mas
28、s-produced hybrid vehicle,arrived on the global market,firing the starting gun for the vehicle decarbonisation race that continues apace today.And while customer demand has driven much of the sustainability and decarbonisation progress of the industry to date,the regulatory environment has also expa
29、nded and transformed in this regard over the last 25 years.In 1999,the EU had only recently introduced regulations to monitor and reduce vehicle CO2 tailpipe emissions.However,it was not until 2008 that monitoring,along with a 140g/km CO2 fleet average limit,was made a mandatory requirement.Today,ma
30、nufacturers have reduced their fleet-wide tailpipe average to below 109g/km CO2 as a result of investment in cleaner ICE and hybrid technologies and,more recently,the increased focus on zero emission vehicles.More than a million battery electric vehicles(BEVs)have been bought by UK customers.By 2030
31、,the newly introduced Zero Emission Vehicle Mandate requires 80%of all new car and 70%of all new van registrations to be zero emission,with all major political parties committed to ending the sale of all non-zero emission road vehicles in the coming years.The UK automotive industry is proud of the p
32、rogress it has made over the last 25 years,a period in which the sustainability landscape has transformed.The introduction,and subsequent amendment,of the UK Climate Change Act has created a legally binding commitment for UK Government to deliver the Paris Climate Change Goals and achieve net zero b
33、y 2050.The automotive industry has long-recognised its critical role in meeting this target,delivering the zero emission vehicles and technologies on which the UKs wider net zero economic progress relies,and also through the decarbonisation of its own manufacturing and supply chain activities.The in
34、dustry has invested billions in the zero emission vehicle transition and there are now over 100 battery electric car and van models to choose from in the UK up from zero in 1999 and from just 16 a decade ago with an average driving range of 236 miles.3 Additionally there are 27 zero emission HGV mod
35、els and 13 zero emission bus models available in the UK.While much of the regulatory attention to date has focussed on the decarbonisation of the vehicles themselves,decarbonisation of manufacturing processes has also seen significant improvement over this time.The Climate Change Levy(CCL),a tax add
36、ed to electricity and fuel bills,was introduced in 2001 shortly after the publication of SMMTs first sustainability report.While the impact and cost of this levy was significant for a relatively energy-intensive automotive industry,the introduction of Climate Change Agreements(CCAs),alongside the CC
37、L,has incentivised and supported manufacturers to reduce their energy use.CCAs are voluntary agreements made between UK industry and the Environment Agency to reduce energy use and carbon dioxide(CO2)emissions in return for a significant CCL discount.4 SMMT negotiated the automotive industrys CCA wi
38、th the Environment Agency,and continues to facilitate it on behalf of the sector.5 Since 1999,welcome progress has been made by manufacturers in monitoring,measuring and reducing their direct scope 1 emissions(from owned or controlled sources)and indirect scope 2 emissions (from the generation of pu
39、rchased energy).6 Since our first report,the average amount of scope 1&2 energy required to produce a vehicle in the UK has fallen by-14%but,over the same period,the corresponding average scope 1&2 CO2 per vehicle has been halved(-54%)due to the significant investments in lower carbon fuel sources,r
40、enewable electricity generation and energy efficiency measures,along with an increasingly decarbonised national grid.While automotive manufacturers seek to continuously build on the good progress made already in addressing scope 1&2 emissions,both government and industry understand the urgent need t
41、o also address indirect scope 3 emissions that occur in manufacturing value chains,including both upstream and downstream emissions.The challenges of this for a global automotive industry supply chain are significant,and explored in more detail later in this report.Continued engagement and partnersh
42、ip between industry and Government will be critical to ensure alignment with emerging international regulatory frameworks.While the decarbonisation agenda dominates many of todays headlines,the automotive sustainability progress of the last 25 years goes far beyond this.For example,vehicles produced
43、 in the UK today are manufactured using-23%less water and coated with paint that produces less than half the volume of volatile organic compounds(VOCs)per square metre(-53%).Soon after the publication of our first report in 2000,the EU adopted the End-of Life Vehicle Directive,requiring member state
44、s to introduce regulations to ensure end-of-life vehicles were recycled or reused,with targets rising by 2015 to 85%for reuse and recycling and 95%for reuse and energy recovery.The UK adopted this legislation in 2003.During this period,there has also been demonstrable progress made by UK automotive
45、companies across a variety of social,as well as environmental,sustainability issues,particularly in regard to the safety,wellbeing and diversity of their workforce and customers.For example,lost time incidents today have reduced drastically by-91%since 1999.3 https:/www.smmt.co.uk/2024/05/brits-enjo
46、y-best-ever-ev-choice-with-more-than-a-hundred-models-now-available/4 https:/www.gov.uk/guidance/climate-change-agreements-25 https:/www.smmt.co.uk/industry-topics/environment/energy-efficiency-regimes/6 https:/ghgprotocol.org/calculation-tools-faq7 https:/www.legislation.gov.uk/uksi/2003/2635/conte
47、nts/made 8 https:/ec.europa.eu/commission/presscorner/detail/en/qanda_23_40439 https:/www.globalreporting.org/10 https:/ghgprotocol.org/corporate-standard11 https:/sciencebasedtargets.org/resources/files/SBTi-criteria.pdf12 https:/finance.ec.europa.eu/news/commission-adopts-european-sustainability-r
48、eporting-standards-2023-07-31_enINTRODUCTION9THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS9THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERSand Tier 1 suppliers,in order to stay compliant and competitive as they transition and adapt.And while the focus of CSRD is on demonstrating data transparency,the
49、 EUs forthcoming Corporate Sustainability Due Diligence Directive(CSDDD)will increase the emphasis on demonstrating measurable reduction in environmental and social impact.So the need for accurate,representative,consistent data is clear.Importantly,ESRS has been designed to take specific account of
50、ISSB and GRI,minimising the risk of duplicated,misaligned or competing requirements.In addition,the EUs European Financial Reporting Advisory Group(EFRAG)has recently developed sector-agnostic guidance for ESRS implementation,with sector-specific guidance to follow.At a UK level,the need to develop