Unepfi-汽車行業(yè)融資的氣候目標設定（英）-2024.2

>

ClimateTarget

Settingfor

AutomotiveSector

Financing

Emergingpracticepaper

February2024

Disclaimer

ThecontentandguidancesetoutwithinthispaperdonotconstituteadvicetoMembersoftheNet-ZeroBankingAlliance(theAlliance).Further,anyviewsexpressedinthispaperdonotnecessarilyrepresenttheviewsofeachindividualmember,includingthoseintherelevantworkinggroupthatassistedinthepreparationofthepaper.Thispaperisintendedasageneralguidefor‘effectivepractices’andisnotprescriptiveastoactionsordecisionstobetakenbyMembers.TheMembersoftheAlliancesetindividualtargetsandmaketheirownunilateraldecisions.Theuseofpapersandguidance,includingthescopeofparticipationintheAlliance,isatthediscretionofeachindividualMember.Assuch,theAlliancetakesnoliabilityforactionsordecisionstakenbyMemberswhenapplyingtheprinciplesofthispaper.Anyreferencestoexternalframeworksororganisa-tionsshouldnotbeconsideredanendorsementofthatorganisationortheirwork.

Coverimage:

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ClimateTargetSettingforAutomotiveSectorFinancingii

Contents

|

Purposeofthispublication

Thissector-specificanalysisfortheautomotivesectorispartofaseriesdevelopedbymembersoftheNet-ZeroBankingAlliance(NZBA)withthepurposeofoutliningthechoicesbanksmakewhensettingclimate-relatedtargetsinparticularsectorsoftherealeconomy.Thisseriesidentifiesemergingpracticesandapproachestoestablishingemissionstargetsforbankfinancing,whilealsoidentifyingprevailingtrends,commonchallengesandpolicy,data,andothergaps.

TheoverarchinggoalofthisanalysisistoassistNZBAmembersinformulatingorrefin-ingtheirowntargetstowardsnet-zeroemissionsgoingforward.ItdoesnotimposeanynewrequirementsonNZBAmemberbanksoverandabovetheonestheychosetocommittowhenbecomingasignatoryandisnotprescriptiveintermsofspecifyingwhenandhowtheyareexpectedtodecarbonisetheirsector-specificlendingandinvest-mentportfolios.Duetothefast-pacedenvironmentcharacterisedbyrapidlyevolvingscenarios,pathways,scientificadvancements,anddevelopmentsintherealeconomy,thispublicationshouldberegardedasareviewofcurrentpractices.

Thissector-specificpublicationwillfocusonprovidingthebaselineinformationbankscanusewhenactivelysteeringtheirportfoliotowardsemissionreductionsintheauto-motivesector.Thispaperfocusesondecarbonisationanddoesnotconsiderotherimportantenvironmentalandsocialissues.

ClimateTargetSettingforAutomotiveSectorFinancingiii

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|Purposeofthispublication

Acknowledgements

Thispublicationwaswritten,compiledandeditedbyrepresentativesoftheUNEnviron-mentProgrammeFinanceInitiative(UNEPFI),whichhoststhesecretariatoftheNet-ZeroBankingAlliance(NZBA).TheyincludeAdrienneCleverly,ClaudiaFlorowski,SarahKemmitt,andDanielStorey.

ThedocumentreflectstheworkoftheNZBAAutomotiveWorkingGroupandconsulta-tionswithover20otherbanks,NGOS,andindustrystakeholders.RepresentativesfromBarclaysandINGledtheworkwithsupportfromtheNZBASecretariat.

TheSecretariatwouldliketothankrepresentativesfromthefollowingbanksfortheircontributionsandreviews:LloydsBankingGroup,MitsubishiUFJFinancialGroup(MUFG),Santander,StandardChartered,Scotiabank,SumitomoMitsuiFinancialGroup(SMBC),TDBankGroup,aswellasBNPParibasandItaúUnibanco.

TheSecretariatwouldalsoliketothankrepresentativesfromthefollowingexternalreviewers:CERES,theInternationalCouncilonCleanTransportation(ICCT),theTransi-tionPathwayInitiative(TPI)/LondonSchoolofEconomicsandPoliticalScience(LSE),UNEnvironmentProgramme(UNEP),UNEnvironmentProgrammeFinanceInitiative(UNEPFI).

ClimateTargetSettingforAutomotiveSectorFinancingiv

Contents

|Acknowledgements

AbouttheNet-Zero

BankingAlliance

Theindustry-led,UN-convenedNet-ZeroBankingAlliance(NZBA)bringstogethera

globalgroupofbanks

,currentlyrepresentingover40%ofglobalbankingassets,whicharecommittedtoaligningtheirlendingandinvestmentportfolioswithnet-zeroemis-sionsby2050.

Combiningnear-termactionwithaccountability,thisambitiouscommitmentsees

signa-

torybanks

settingintermediatetargetsfor2030orsoonerusingrobust,science-basedguidelines.

NZBAistheflagshipclimateinitiativeunderthe

PrinciplesforResponsibleBanking

toacceleratescience-basedclimatetargetsettinganddevelopcommonpractice.AsthebankingalliancewithintheglobaleffortsonnetzeroacrossthefinanceindustrybroughttogetherunderGFANZ,theNZBAisopentoallbanksglobally,includingbanksthatarenotUNEPFImembersandPrinciplesforResponsibleBankingsignatories.

TheAlliancereinforces,accelerates,andsupportstheimplementationofdecarbonisa-tionstrategies,providinganinternationallycoherentframeworkandguidelinesinwhichtooperate,supportedbypeer-learningfrompioneeringbanks.Itrecognisesthevitalroleofbanksinsupportingtheglobaltransitionoftherealeconomytonet-zeroemissions.

TheAllianceisconvenedbythe

UNEnvironmentProgrammeFinanceInitiative

andisapartofthe

RacetoZero

.

Learnmorehere:

/net-zero-banking/

ClimateTargetSettingforAutomotiveSectorFinancingv

Contents

|AbouttheNet-ZeroBankingAlliance

Abbreviationsandacronyms

BEV(s)

Batteryelectricvehicle(s)

CNG

Compressednaturalgas

EV(s)

Electricvehicle(s)

EU

TheEuropeanUnion

FCEV(s)

Fuelcellelectricvehicle(s)

GHG

Greenhousegases

HDV(s)

Highdutyvehicle(s)

HEV(s)

Hybridelectricvehicle(s)

ICE

Internalcombustionengine

ICEV(s)

Internalcombustionenginevehicle(s)

IEA

InternationalEnergyAgency

IEAB2DS

InternationalEnergyAgencyBeyond2°Scenario

IEANZE

InternationalEnergyAgencyNetZeroEmissionsby2050Scenario

ISSB

InternationalSustainabilityStandardsBoard

LPG

Liquefiedpetroleumgas

NGFS

NetworkforGreeningtheFinancialSystem

NZBA

Net-ZeroBankingAlliance

OEM(s)

Originalequipmentmanufacturer(s)

PCAF

PartnershipforCarbonAccountingFinancials

PHEV(s)

Plug-inhybridelectricvehicle(s)

SBTI

ScienceBasedTargetsinitiative

SUV

SportUtilityVehicle

WACI

Weightedaveragecarbonintensity

WEO

WorldEnergyOutlook

WLTP

WorldwideHarmonisedLightVehicleTestProcedure

ClimateTargetSettingforAutomotiveSectorFinancingvi

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|Abbreviationsandacronyms

Contents

Purposeofthispublication iii

Abbreviationsandacronyms vi

Summary viii

1.Introduction 1

1.1Methodologicalapproachtakenbythispaper 1

2.Understandingtheautomotivesector 3

2.1Greenhousegasemissionsofthetransportsector 3

2.2Strategicoptionsforthedecarbonisationoftheautomotivesector 4

3.Designchoicesforscopingthesector 5

3.1Scopingtheautomotivesector:valuechainandvehicletypes 6

3.2Financialproducts 12

3.3Identifyingemissionboundariesagainstavehicle’slifecycle 17

3.4Understandingemissionsfromproductionphase 18

3.5Emissionsfromamanufacturer’sperspective 23

4.Designchoicesforscenariosandbenchmarking 27

4.1Interpretingnet-zero-alignedpathwaysfortheautomotivesector 27

4.2Target-settingmetrics 30

4.3Attributionandaggregationapproaches 34

4.4Benchmarkingapproaches 35

4.5Data 37

Conclusion 41

Call-to-actionforpolicymakers 42

Bibliography 43

AnnexA:Definitionsandterminology 45

Endnotes 46

ClimateTargetSettingforAutomotiveSectorFinancingvii

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|

Summary

Thetablebelowsummarisesthekeydesignchoicesfinancialprofessionalsfacewhensettingnet-zerofinancingtargetsfortheautomotivesector.

Designchoices

Elements

AutomotiveSector

Sectorscoping

Financialproducts

Bankscansettargetsacrosstheirloanbooksaswellascapitalmarketproducts.Commonfinancialproductsthatareconsideredbybanksincludegeneralcorporatefinance,captivefinance(to

manufacturers),loanstootherfinancearms,aswellasdirectvehicleloans(toendcustomers).

Methodologiesforsettingtargetsonloanbooksaremostadvanced.

Valuechain

stakeholders

Bankscansetoneormoretargetsforanyofthevaluechain

stakeholders,namelysuppliers,vehiclemanufacturers/original

equipmentmanufacturers1(OEMs),distributionandsales,aswellasendcustomers(seeAnnexAformoredetaileddefinitions).

Thispaperfocusesonsettingtargetsforfinancingofvehicle

manufacturers.Methodologiescoveringdirectvehicleloansareavailablefromthirdparties,suchasthePartnershipforCarbonAccountingFinancials(PCAF).

Emissions

Emissionscoveragecanincludeoperationalemissionsofvehiclemanufacturersandcomponentmanufacturers(Scope1and2),aswellastailpipeemissions(Scope3)ofthevehicle.

Target-settingmetricsanddata

Metrictypes

NZBAGuidelinesdirectbankstosetfinancedemissionstargetsusingabsoluteemissionsmetrics(e.g.annualtCO2e)and/or

emissionsintensitymetricsbasedonanactivity(e.g.annualkgofCO2pervehiclekmtravelled(/v(k)m)).

Attribution

approach

Twobroadattributionapproachesareavailabletobanks:thebalancesheetapproachandtheportfolioweightapproach.

Datasources

Bankshaveseveraldatasourcesavailable,includingclient

reports,AssetImpact,AutoForecastSolutions,EuropeanEnvi-ronmentAgency,WorldBankBenchmarkingAlliance,JATO

volumes,S&PGlobalMobility,TransitionPathwayTool(TPI),TrucostEnvironmentalESGDataPack,PCAFDatabase,andWardsIntelligence.

ClimateTargetSettingforAutomotiveSectorFinancingviii

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|Summary

Designchoices

Elements

AutomotiveSector

Pathways

Scenariochoice

NZBAGuidelinesdirectmemberbankstousewidelyaccepted,science-baseddecarbonisationscenariostoguidemembers

whensettingindividuallong-termandintermediatetargetsthatarealignedwiththetemperaturegoalsoftheParisAgreement.Inaddition,pertheGuidelines,“scenariosselectedshallbe“no

overshoot”or“l(fā)ow-overshoot”scenarios,”andshouldhavea

>50%probabilityoflimitingglobalwarmingto1.5°Cbytheendofthecentury.

ScenariosdiscussedinthispaperareIEANetZeroEmissionsby2050Scenario(IEANZE2050)andtheNetworkforGreeningtheFinancialSystem(NGFS)NetZeroscenario.However,other1.5°Cscenariosandpathwaysexist(e.g.OneEarthClimateModel)orarebeingdevelopedatthetimeofpublication(e.g.SBTi).

Benchmark

pathway

Threeapproachesareavailabletodesignthebenchmarkpathway:2

.Convergenceapproach:impliesthatallcounterparties

convergetonet-zero-alignedindustry-averageemissionsinten-sitylevels.

.Contractionapproachorrate-of-reduction:impliesthatall

counterpartiesreduceemissionsatthesamenet-zero-aligned,industry-averagerate,irrespectiveoftheircurrentandpast

performance.

.Fairshareapproach:definestheaveragerateofreduction

inabsoluteemissionsforanindustrybutrecognisesthat

individualcounterpartiesmaybebetter-orworse-performingthanaverage.

ClimateTargetSettingforAutomotiveSectorFinancingix

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|Summary

1.Introduction

1.1Methodologicalapproachtakenbythispaper

Inthisdocument,theNet-ZeroBankingAlliance(NZBA)examinesscience-basedapproachesemployedbybankstoestablishandmeasuretheirprogressindevelopingindividualnet-zerotargetsfortheirtransportationportfolios.

ThepublicationwasdevelopedbyanNZBAworkinggroupcomprising17NZBAmemberbankswhohavealreadyset,orarecurrentlydeveloping,theirnet-zerotargetsfortheautomotiveand/ortruckingsector.Theworkinggroup’sanalysisisstructuredaroundsixbuildingblocks,asdepictedinFigure1,whichformthebasisofthisdocument.

Bankssettingnet-zerotargetsfortheautomotivesectorwillmakecriticaldesignchoicestoappropriatelyscopetheirapproach,including:

.Financialproductsinscope:Understandingthedifferentfinancialproductsthatcanbeinscopeforbanks.

.Valuechainscope:Identifyingandengagingrelevantstakeholdersthroughouttheautomotivevaluechaintopromoteemissionsreductionefforts.

.Vehicletypeconsiderations:Recognisingtheinfluenceofdifferentvehicletypesontargetsettingduetotheirdistinctemissionsprofiles,lifespan,andpotentialfordecar-bonisation.

.Greenhousegasemissionsandscopes:Identifyingthediversesourcesofemissionswithintheautomotiveindustry.

.Assessing1.5°Cpathways:Banksgaininsightsintostrengthsandgapsofprominentpathwaysthatguidetheautomotivesector’salignmentwiththe1.5°Ctarget.

.Establishingmetricsandmethods:Banksselectmetricsandmethodologiestomeas-ureprogressandindividuallysetambitioustargetsinlinewithglobalclimateobjectives.

.Accessingrelevantdatasources:Banksutilisesector-specificandregionaldatasourcestoinformtargetsettinganddecisionmaking.

(1)

(2)

(3)

(4)

(5)

(6)

AutosValue

Vehicle

Emissions&

Pathway

Metrics&

Data

ChainScope

Scope

GasesScope

TargetSetting

Figure1:Thesixbuildingblocksconsideredbybanksthroughthetarget-settingprocess

ClimateTargetSettingforAutomotiveSectorFinancing1

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|Introduction

Recognisingthesignificantregionalvariationsinregulations,reportingrequirements,dataavailability,andthematurityofzero-emissionvehiclemarketsandassociatedinfrastructure,thispublicationaimstoprovideanuancedunderstandingofthemultiplefactorsinfluencingabank’sassumptionsunderlyingabank’snet-zerotargets.

Thefollowinginformationprovidedisnotexhaustive,andbanksmustnavigatedatalimi-tationsbothatthecollateralandscenariolevels,necessitatingrelianceontheavailabil-ityofnationaldataandregionalscenarios.NZBArecognisesthatapproachestotargetsettinginvarioussectorsareevolvingandwillcontinuetodoso,highlightingthedynamicnatureofthisfield.Assuch,thisdocumentrepresentsapoint-in-timeassessment.

Whilethepublicationfocusesondecarbonisationanddoesnotincludeotherenviron-mental,social,orgovernmentalaspects,banksneedtoconsidertheconductimplica-tionsandclients’ongoingaccesstofinancingwhensteeringtheirportfolios.Adheringtotheseprincipleswillalsohelpavoidthecreationofstrandedassetsbyadaptingtochanges,suchasshiftsinregulatoryorenvironmentalpolicies,aswellasavoidinginvestmentsinassetsthatlaterarelesslikelytobecomenon-viableorobsolete.

Importantly,thepaperisdesignedtocomplementtheNZBA’sGuidelinesforClimateTargetSettingforBanks(theGuidelines)anddoesnotprescribeanyspecificmethodol-ogiesforbankstoadopt.Itisessential,however,anyactiontakenbasedoninformationinthispublicationtofulfilabank’sNZBACommitmentshouldadheretoallprovisionsoftheGuidelines.Moreover,nationallawsandregulationsshouldtakeprecedent.

ClimateTargetSettingforAutomotiveSectorFinancing2

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|Introduction

2.Understandingtheautomotivesector

2.1Greenhousegasemissionsofthetransportsector

Asglobalgreenhousegas(GHG)emissionscontinuetorise,urgentactionisrequiredtoaddressclimatechangeanditswide-rangingconsequences.Withinthespectrumofsectorscontributingtotheseemissions,thetransportsectoremergesassignificant.Annually,itadds8.7GtCO2eemissions,accountingfor23%ofglobalenergy-relatedemissions.3Oftheseemissions,asignificantportion(about70%)stemsfromroadvehi-clesresponsibleforbothpassengerandfreighttransport.

Mainfocusofthispaper

Road(passenger)

45.10%

29.40%

Road(freight)*

AviationShippingRail

Other

11.60%

10.60%

1.00%

2.20%

0%5%10%15%20%25%30%35%40%45%50%

*Road(freight)isonlypartiallycoveredbythispaper.

Figure2:GlobalCO2emissionsfromtransportation[Source:“OurWorldinData”(2020)]

Projectionsindicateavariedlandscapefortheglobalvehiclefleet.WhileOECDcoun-triesareexpectedtowitnessfleetvolumesreachingaplateau,non-OECDcountriesarepoisedtoexperiencesignificantgrowth,withtheadditionofoveronebillionvehicles,predominantlyfeaturingconventionalinternalcombustionengines.

Betweennowand2030,anannualreductionofapproximately5GtCO2eisneeded,totallingaround25–30GtCO2eoverthatperiod,acrossalleconomicsectors.4Lookingaheadto2050,anambitioustargetofan80%overallreductionintransportation-relatedemissionsmustbepursuedtoremainwithin1.5°Cwarming.5

ClimateTargetSettingforAutomotiveSectorFinancing3

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|Understandingtheautomotivesector

2.2Strategicoptionsforthedecarbonisationoftheautomotivesector

Decarbonisingtheautomotivesectorrequiresexplorationofmultiplepotentialdecarbon-isationpathways,withtheacknowledgementthatthesepathwaysarenotjustprimar-ilydependentonfinancingbutalsorequireactionfromgovernments,industryplayersandcustomers.Banksareencouragedtosetambitiousandforward-thinkingtargetsfortheirfinancialactivities,andengagementfromallrelevantstakeholdersiscrucial.Thesectorwillneedtotransitiontowardselectrifyingmobilityandreconsiderthecontinuedandwidespreadutilisationofcarsasaprimarymeansoftransportation.6Consequently,manufacturersmustcarefullyreconsidertheirbusinessmodelsandpromotionalstrate-giessurroundingvehicleusage,facilitatingthenecessaryshifttowardsamoresustain-abletransportationparadigm.

Overall,thetransitionofthesectorcallsfornecessaryachievements,rangingfromthenear-termtotheextendedlong-term,namely:

1.Improvingefficiencyofvehiclesproduced;

2.Transitioningfromcarbon-intensivemodesoftransporttolesscarbon-intensivetransportationrangingfromincreasingtheutilisationrateofvehicles(measuredaspeoplepervehicleperkilometre)toimplementingsolutionsbettersuitedforurban,peri-urban,andruralenvironments.Thiscanincludebutisnotlimitedto:bicyclesandexpandingbicyclelanes,reducingspeedlimits,anddevelopinginfrastructuresupportforzero-emissionvehicles7etc.;

3.Maximisingtheelectrificationrateofthetransportsector—i.e.theshiftfrominternalcombustionengine(ICE)toelectricvehicle(EV).

Whiletheoutlineddecarbonisationachievementsarealsoreliantongovernmentalandpolicyinterventions,theprivatesectoralsohasaroletoplayandhasincreasinglysetEVtargetsinlinewithgovernmentaction.Financialinstitutionscanexpeditedecarbon-isationgoalsbysupportingclients’transitionthroughtargetedcapitalallocationandstructuring.Thisfocusedfinancialsupportcandriveboththeinnovationinsustainablevehicledesign(rangingfromlow-carboncomponentstoapplyingcirculareconomicprin-ciples)andtheconsumeradoptionofnet-zeroemissionoptions,suchasEVs,therebyreinforcinggovernmentaleffortstodecarbonisethetransportsector.

Anet-zeroenergysectorisafundamentalupstreamcontributortodecarbonisationefforts,asthefuturegenerationandsupplyofpowerstronglyinfluencesthedecarbon-isationeffortswithinthetransportsector.Banksneedtoconsiderthesedependencieswhenanalysingtheirroleinthecontextofpotentialimpactwithinthetransportsector.

ClimateTargetSettingforAutomotiveSectorFinancing4

Contents

|Understandingtheautomotivesector

3.Designchoicesforscopingthesector

Thispublicationfocusesonbanks’approachestosettingtargetstoreduceemissionsassociatedwithclientsintheautomotivesector,specificallyrelatedtoavehicle’sproduc-tionandusephase.However,itisacknowledgedthatbanks’designchoicescanhelpincentiviseadditionalactioninthesectortoreduceGHGemissions,including:

.Usinglendingactivitiestoencouragefuel-switchingtonet-zerofuels,developmentofimprovedmanufacturing,materialimprovements,andextendedbatterylifecycles.

.Implementingcircularityapproachestoreduceembeddedemissionsinmaterials,increaserawmaterialrecyclingrates,andminimiseproductionwaste,resultingindecreasedScope1,2and3emissionsfromvehiclemanufacturers.

.Financinginfrastructureandswitchingvehiclestoreduceprivatetransportationdemand.

Banks’financingandtarget-settingfocusintheautomotivesectorissubjecttochangeandisinfluencedbytransitionrates,i.e.thespeedatwhichthesectordecarbonises,andbysoundinvestmentdecisionstoensurecapitalsafety.Asthesectoradvancesinitselectrificationjourney,characterisedbyasignificantuptakeofzero-emissionvehicles,banksmaydecidetoextendtheirscopetoencompassotherinterconnectedcompo-nents.Thisevolutionisrootedinthechanginglandscapeofemissionssourcesthataccompaniesthesector’selectrification.Factorssuchasminingforelementsusedinbatteriesandtheapplicationofcirculareconomicprinciplesbecomemoresalientinthiscontext.Consequently,thedurabilityandrecyclabilityofbatteriesassumesgrowingsignificanceinthisdynamicscenario.Althoughnotinscopeofthispaper,bankscanadditionallyconsiderengagementwithsuppliersofrawminerals(suchaslithium,cobalt,ornickel)inaseparatetargettoaddressthesenestedopportunities(suchasincentivis-ingsustainablerawmaterialsourcing)andcontinuetoreducetheirfinancedemissionsinrelatedmarkets.8

Takingacross-sectoralperspectiveallowsforacomprehensiveapproachtotheauto-motivesector,encompassingnotonlymanufacturersbutalsorelatedcomponentsandprocesses.However,thisapproachaddscomplexitytoemissionsaccountingandaddsriskofdouble-countingwithothersectorssuchassteel,rubber,andheavyindustry.Double-countingcanhaveseveralunintendedconsequences,includingportrayinganinaccurateimageofemissionsreductionachievementsordisguisingcounter-depend-enciesifonesector(e.g.upstreamordownstreamScope3emissions)progressesatadifferentpacethanthesectorinfocus.Thispublicationaddressessuchcross-sectoralinterfaceswhereneededtoensureaccurateemissionsaccountingandavoidduplicationofefforts.

ClimateTargetSettingforAutomotiveSectorFinancing5

Contents

|Designchoicesforscopingthesector

Rawmaterial

producers(oil

&gas,steel,

fueletc.)

3.1Scopingtheautomotivesector:valuechainandvehicletypes

Byestablishinganaccuratescopeofthespecificstakeholderswithintheautomotivevaluechain,bankscanunderstandhowtoincentivisetheirclients’designdecisionstoreduceemissionsassociatedwithavehicle’susephaseandlifecycle,e.g.suppliersmightneeddifferentincentivesthanvehiclemanufacturers.Thevaluechainforvehi-cleproduction(Figure3)encompassesfourkeystakeholdergroups:suppliers,originalequipmentmanufacturers(OEMs)/manufacturers,distributionandsales,andvehicleusers/endcustomers.9Whilerawmaterialproducersareacknowledgedandinfluenceavehicle’slifecycleemissions,theyarenotwithinthescopeofthisanalysis.

Focusoftheanalysis

Original

equipment

manufacturer

(OEM)/

manufacturer

Endcustomers

(vehicleowners/

endusers)

Distributionandsales

Suppliers

Figure3:Valuechainoftheautomotiveproductionindustry

Eachstakeholdergroupoffersdifferentopportunitiestoachieveanet-zerotransforma-tionwithinthesector.Table1offersacomprehensiveoverviewofthebenefitsandchal-lengesassociatedwiththeinclusionofeachstakeholdergroupwithinatarget,enablingafocusedapproachtoaddresstheiruniquecircumstancesandemissionsreductionpotential.

ClimateTargetSettingforAutomotiveSectorFinancing6

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|Designchoicesforscopingthesector

Table1:Challengesandbenefitsofincludingtheidentifiedvaluechainsegmentswithinthescopeofbanks’targetsettingfortheautomotivesector

Valuechain

Challenges(Cons)

Benefits(Pros)

ShareofCO2emissions&downsideofnotincludingemis-sionsfromthisvaluechainsegment

Suppliers

.Diversityofcomponents:Diversityintypesofautocomponent(suchasenginesandcompartments,batteriesbrakes,sparkplugs,tiresetc)cangiveusawiderangeofemissionsprofilesfromdifferentstakeholders,whicharecoveredbybankstovaryingdegreesandmightthusskew

comparabilityofemissiontargets.10

.Rangeofcomponents:Therangeofcomponentsandtheirmanufactur-ersmightleadtoaconvolutedidentificationofdecarbonisationlevers,therebycomplicatingabank’sinsightstodrivedecision-making.

.Insufficient