Porsche asks component suppliers to use only renewable energy

Suppliers who are not ready to convert to certified green electricity will no longer be considered in the Porsche award process in the long term.

Porsche is making further efforts to reduce CO₂ emissions in the supply chain. From July 2021, the sports car manufacturer will require its 1,300 series suppliers to use only renewable energies for the production of Porsche components. 

This applies to all procurement of production material for new vehicle projects. Suppliers who are not ready to convert to certified green electricity will no longer be considered in the Porsche award process in the long term.
“Our battery cell suppliers have had to use green electricity since 2020. Now the next important step follows: Our series suppliers should also produce our components entirely with renewable energies and thus further reduce CO₂ emissions. We take responsibility for sustainable and transparent supply chains,”said Uwe-Karsten Stadter, Board Member for Procurement at Porsche AG.

Targeting carbon-neutrality by 2030
Porsche has set itself an ambitious goal of going CO₂-neutral across the entire value chain by 2030. The sports car manufacturer’s supply chain is currently responsible for around 20 percent of Porsche’s greenhouse gas emissions. With increasing electrification, this proportion will rise to around 40 percent by 2030.

“With the exclusive use of electricity from renewable energy sources, suppliers are on our way to achieving carbon neutrality. To this end, we will hold even more intensive discussions with our partners in the future in order to drive improvements in sustainability. We can only counter the advancing climate change together, ”added Procurement Board Member Stadter.

In addition to the supply chain, Porsche is also reducing CO₂ emissions in its own plants: the Taycan, the first fully electric sports car from the Stuttgart-based company, has been produced in a CO₂-neutral manner at the Zuffenhausen plant since production began in 2019. This has been true for the entire headquarters since 2020 and thus also for the 911 and 718 sports cars. At the beginning of 2021, the development center in Weissach and the plant in Leipzig were added, where the Macan and Panamera models are produced. This means that all of the major Porsche locations are already working CO₂-neutrally.

In addition, the company will invest more than one billion euros (Rs 8,267 crore) in decarbonisation measures over the next 10 years. Porsche set a milestone with the world premiere of the Taycan Cross Turismo at the beginning of March. The all-rounder among electric sports cars is the world’s first vehicle that is supposed to be CO₂-neutral throughout the entire usage phase. Further model series will follow. In addition, more than 80 percent of all newly sold vehicles are to be handed over to customers as purely electric models or as plug-in hybrids in 2030. The proportion of new vehicles with electric motors is expected to be 50 percent as early as 2025.