As part of its Reimagine strategy, luxury car manufacturer JLR will introduce a pure electric model to each of its Range Rover, Defender and Discovery collections by the end of the decade, while Jaguar cars will become completely electric. This will enable JLR to reach its target of net zero carbon emissions across its supply chain, products and operations by 2039.1 JLR is committing significant resources to decarbonising the processes and operations under its direct control.2 But how is the company going to reduce the trickier Scope 3 emissions – those that are produced by its suppliers and end users?
End-user emissions are the most consequential for automotive manufacturers, accounting for up to 70% of their total Scope 3 emissions.3 The most direct way a car manufacturer can reduce the emissions from people using its vehicles is by switching its products to electric vehicles, which can operate on electricity generated from renewable sources. JLR has committed to this transition as part of its Reimagine strategy, which is expected to result in 80% of all JLR sales being battery electric vehicles (BEVs) by 2030.
However, considering its target of reaching net zero carbon emissions across its supply chain, products and operations, how does JLR intend to tackle the Scope 3 emissions produced by its supply chain?
“Emissions are generated at every point along the supply chain — from the mining of materials to the manufacturing process to end use,” says Aram Kradjian, director of research and innovation at JLR. “It’s vitally important to consider sustainability in every new area of innovation. We need to show that we’re reducing emissions at their source and not offsetting them through planting trees.”
A gear change for the supply chain
For JLR, collaboration is an important way to reach the goal of a net zero carbon supply chain by 2039. It is encouraging its suppliers — direct Tier 1 suppliers in particular — to establish a clear decarbonisation roadmap, transparent emissions reporting and to join it in committing to the Science Based Targets initiative.4 JLR also expects its suppliers to reduce emissions across their own supply chains through the same cooperative approach. Given its global network of more than 5,000 suppliers, the trickle-down effect of these new requirements could be considerable.
JLR does not expect its suppliers to face this challenge on their own. Through its Open Innovation programme, designed to accelerate electrification, digital connectivity and new decarbonisation technologies with external partners, JLR is addressing the most carbon-intensive parts of the supply chain. Recent collaborations include working with DeepForm, a novel metal stamping design start-up to reduce scrap and save material, and Ascend Elements, which manufactures battery materials from discarded lithium-ion batteries.
“Open Innovation is all about collaborating with different types of companies —start-ups, universities and institutions that work in the sustainability and decarbonisation space,” says Kradjian.
Software is as important as hardware
Rapidly evolving AI and machine learning technologies will also play an important role in reimagining the car and reducing automotive emissions, by simplifying the reporting of emissions produced during the mining and manufacturing stages.
“Through our Open Innovation programme, with the likes of Circulor, we are working with start-ups to use machine learning and blockchain to track the provenance of the materials we use,” says Kradjian. “We believe that AI and machine learning will enable similar advancements throughout the technological chain.”
JLR’s partnership with the technology company NVIDIA, which is considered an authority on AI and in May 2023 was valued at $1tn,5 positions the car maker to capitalise on new developments in AI and help to make its EVs more efficient.
“Working with a market leader in AI like NVIDIA is critical for our technology and sustainability development,” says Kradjian. “Software is equally as important as hardware and plays a critical role in maximising the efficiency of electric vehicles. It optimises powertrain performance, manages energy usage, controls regenerative braking, enables adaptive driving modes, and allows for continuous improvement through over-the-air updates.”
Manufacturers now consider a lifetime of emissions
Creating a culture of sustainability also supports decarbonisation across the entire value chain, because it reframes employees’ approach to everyday tasks with the goal of net zero emissions front of mind.
“The research and innovation team has learned so much about Scope 1, 2 and 3 emissions in the past few years, and this has given us the awareness, knowledge and insight to think about how to implement sustainability in our work,” says Kradjian.
This insight and knowledge can help organisations think about sustainability in the supply chain in a smarter way. For example, small changes in the mining and procurement stage can significantly reduce a vehicle’s total emissions.
“Emissions from mining magnesium can be up to 10 times worse than mining other metals we use in a vehicle,” says Kradjian. “Magnesium is a great material, very lightweight with a strong torsional stiffness, but limiting its use in a vehicle will result in a huge reduction in lifetime emissions.”
Sustainability at the end of a vehicle’s life is another aspect that car makers need to consider, with an emphasis on working towards a circular economy.
“We are working with partners to develop second- and third-life opportunities for our batteries, and to make them as easy to recycle as possible at the end of their life,” says Kradjian.
“We need to keep innovating through EV technology but doing so with a true sense of sustainability with a long-term horizon. It’s key to make sure this transition happens in the right way, because we don’t want current solutions to cause further environmental challenges down the line.”
