Carbon management strategies of the automotive sector responding to the European fleet-wide CO2 emission targets

Abstract

The automotive industry plays an important role in achieving the global climate targets. The EU has adopted ambitious restrictions for vehicle emissions, setting fleet-wide reduction targets, while granting automotive companies significant flexibility in meeting these targets. Strategic responses display a broad range of actions reflecting both genuine and escape strategies. A comprehensive framework is applied in the study to evaluate the typical management actions taken by automotive companies. Content analysis of company reports and sectoral reports revealed a wide variety of management strategies, which extend beyond previously known strategies. Only some of these strategies can be expected to reduce global emissions, whereas creative solutions for carbon governance only ensure compliance with emission targets without leading to global CO 2 emission reduction. Based on the results of this study the efficiency of the regulation may be questioned.