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Global leader in reusable packaging solutions, CHEP, has published the second in a series of Supply Chain Trend reports: 6 TRENDS as we transition to a sustainable automotive industry.

Road transport accounts for over 10% of global greenhouse gas emissions, as highlighted at COP26 where over 30 countries, six major vehicle manufacturers and other actors committed to all new car and van sales to be zero emission by 2040 globally, and 2035 in leading markets.¹ With electric vehicles (EVs) containing less – and different – parts to combustion engine vehicles, CHEP’s latest report looks at the structuration of new battery supply chains and its impact on carmakers.

This electrification ramp-up also equating to 2 billion EVs on the road by 2050 for the world to hit net zero (Source: International Energy Agency), the question is not only where batteries will be made, but if they can be manufactured and transported sustainably.

“A sustainable automotive supply chain – just like the vehicles it manufactures – is not just about electrification. It is a combination of many parts,” says Jan Krukau, Finance Director CHEP Automotive Europe & North America.

CHEP’s report examines the juxtaposition of promoting transport electrification whilst ensuring a sustainable transition by highlighting six key trends:

China is currently ahead of the game
European and American OEMs are turning to nearshoring and importing
Doubts are emerging when it comes to meeting electrification targets
A broader vision of sustainability is opening up
Low-carbon innovation is being developed in existing fuel powered vehicles
Packaging and logistics solutions are being revisited

Pioneering circularity in the supply chain since its beginnings, CHEP has been leading the way with its ‘share-and-reuse’ pooling model of pallets and containers that eliminate wasteful one-way packaging. CHEP develops not only pooled packaging solutions, but offers clients transport optimisation services built on four pillars: plant network optimisation, transport orchestrations, multi-modal services, and transport collaboration.

“Our pooling concept has never been more important as we push towards 100% EVs on our roads. Sustainable transport is simply a myth if its manufacture relies on a carbon intensive supply chain,” added Murray Gilder, VP CHEP Automotive.