The purpose of this document is to provide a guide for investors to have constructive engagement with the boards of automotive companies to consider and direct more sustainable strategies that aim to mitigate the long term climate change-related risks to investors. It is to be used as required by investors in their engagement with companies.
To remain competitive and successful in the long run it is important that automotive companies develop more resilient business models that can adapt to the challenges imposed by climate change and stricter environmental regulation. In addition, the sector will also become increasingly exposed to changing levels and patterns of demand as mobility patterns evolve as a consequence of global trends such as demographic change, digital transformation and urban growth.
The expectations formulated in this document go further than merely suggesting automotive companies should support compliance with 2°C regulatory regimes; they call on these companies to actively engage with the climate agenda and advocate this approach publicly. Investors also encourage automotive companies to proactively adjust their business models, capital expenditure in sustainable driving technology and product pipelines as well as to actively engage with policy makers, investors and the rest of the sector to put sustainability at the heart of the industry’s future.