Autonomous Vehicles Industry ESG Thematic Report, 2023

Environment, Social and Governance (ESG) in Autonomous Vehicles Industry

In today’s world, mobility has developed beyond imagination. It’s the era of self-driven motor vehicles and each passing day is adding to this change. Autonomous vehicles (AVs) or self-driven cars bring efficiency in daily lifestyle which is why there is an exponential growth in this sector. These vehicles not only compliment the fast-paced life but are also efficient for the environment. When transportation is responsible for 15% to 25% of global carbon emissions, worldwide use of AVs can substantially reduce the emissions. AVs are found to be more efficient in fuel consumption. This sector can help in furthering the efforts in achieving Sustainable Development Goals (SDGs) of Industry, Innovation and Infrastructure and Climate Action (SDG- 9 and 13)

This industry from a broader perspective can have some negative effects on human health. Presence of remote controls and various other facilities like Wi-Fi, GPS Tracking etc. expose the user to higher radiation on daily basis. Continued use of AVs by the users can result in emergence of neuro-related illnesses. Secondly, these cars are going to operate on old highways and roadways which aren’t optimized for the use of AVs. Both these aspects related to AVs carry a direct threat to the SDG- 03, Good Health and well-being.

ESG Trends

As autonomous vehicles hold an important place in sustainable mobility, investors are getting drawn to the investment opportunities in this market. The fuel efficiency and enhancement in ease of living are major attractions for investors in this sector.

This attraction is also a result of ESG integration into self-driving market. Trendsetters like Embark Trucks and Neuro recently made ESG related disclosures in their reports. Tesla’s reluctance to agree with ESG mandates clearly saw major drop in investors’ motivation to invest in the company which came as an eye opener for other players in the market.

ESG Challenges

The global autonomous vehicles market demand was estimated at 51.6 thousand units in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 53.6% from 2022 to 2030. Self-drive cars are a key innovation in the automotive industry, with high growth potential, and act as a catalyst in the technological development of automobiles. Developing a supportive regulatory framework, government funding, and investment in digital infrastructure is expected to play a key role in positively affecting the market growth during the forecast period. As stated above, there are various benefits of using AVs in future which will result in mass utilization of this technology. But latently it will increase the effects on human health which will be hard to mend once this means of mobility becomes mainstream.

Key Companies in this theme

    • Audi AG

    • BMW AG

    • Daimler AG

    • Ford Motor Company

    • Tesla

    • General Motors Company

Scope of the Autonomous Vehicles Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Autonomous Vehicles Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the driverless vehicles’ sector, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector