Carmakers’ global emissions 50% higher than reported
Car manufacturers are misleading investors by significantly underestimating the total distance travelled and fuel consumption of cars, as mandatory Scope 3 emissions reporting represent a ‘ticking carbon bomb’ for asset managers.x
Carmakers’ global emissions are on average 50% higher than what they report with Hyundai-Kia and BMW underreporting emissions by as much as 115% and 80% respectively, a new Transport & Environment (T&E) report shows. With obligatory scope 3 (lifetime) emissions disclosure set to be introduced in 2023, asset managers with exposure to carbon intensive carmakers face a ‘ticking carbon bomb’, says T&E.
In 2023, the EU will introduce a requirement that financial institutions disclose their scope 3 emissions (indirect emissions)[1]. The new requirement will hit asset managers with exposure to carmakers hard. Unlike manufacturers of furniture or mobile phones, the vast majority (98%) of a car company’s emissions come under scope 3 – primarily the use of the cars [2].
