Brazil enters carmakers’ race against climate change
The greenhouse gases emitted by the automotive industry are mostly caused by the very vehicles that the industry has sold over the past decades. Estimates range from 75% to 96%. But making a car also pollutes. The decarbonization of the production of cars and auto parts involves Brazil, as the factories installed in the country must report to their headquarters, which have global targets to meet. Neutralizing the carbon emitted by the entire chain that involves a vehicle - which includes 2,500 to 5,000 parts - is a complex task. Even with a giant challenge ahead, the industry is already starting to move forward.As a way to show society that they care about the climate emergency, the largest companies in the sector have started to work with deadlines that move up by at least ten years the goal of the Paris Agreement, which establishes the neutrality of carbon emissions by 2050.Decarbonization comes at a price. Jaime Ardila, founder of U.S.-based Hawksbill and a consultant in this field, recalled that investments unveiled to this end around the world total $200 billion, according to international studies, a figure that excludes the electrification of vehicles. "But, in the end, the investments will have to be larger," he said.In Brazil, there are no calculations of how much the automotive industry has invested in the decarbonization of its industrial processes and logistics. "It depends on the paths that each one will follow," said Masao Ukon, a partner at Boston Consulting Group. If an auto parts company exchanges the entire fleet that transports its products for electric trucks, for example, it will spend more.The sector’s great dilemma is how to find ways to involve the whole chain, as hundreds of suppliers deliver thousands of components daily. This is a system without stocks, a condition familiar to the industry for decades. If, on the one hand, just-in-time production has become a reference of lean manufacturing, on the other hand, the method consists of a daily shuttle of trucks to transport the parts.For the carbon neutralization in this sector to be complete, it must also include car haulers, which take vehicles to dealerships and ports across the country. Among suppliers, the purchasing teams of the automakers have been instructed to include as selection criteria companies that stand out in sustainable practices, in addition to ESG (environmental, social and corporate governance) principles.Scania has created a logistics laboratory...
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