The massive investments announced in the past year to drive the UK auto sector’s zero emission transformation have given us fresh momentum – and they are just the latest chapter in a success story spanning more than a quarter century. As SMMT’s 25th Annual Sustainability Report published this week shows, vehicle manufacturers have more than halved the direct CO2 footprint of their production from when the report’s monitoring first began in 1999. Committing that journey to paper, moreover, given the wealth of data required to do so over such a period, is a feat in itself and I would like to thank all those automotive businesses across the country who are signatories.
The challenges posed to their decarbonisation agenda cannot be underestimated. The sector has faced a plethora of major challenges in recent memory, including the financial crash, Brexit and the Covid-19 pandemic, and now looks at a world that is increasingly uncertain. Given this backdrop, it was vital that businesses returned to more business-as-usual conditions last year, but with an ever stronger determination to decarbonise. Industry’s investments in renewable energy and production efficiencies paid dividends in 2023 with the best annual sustainability gains on record. The average amount of CO2, energy and water needed directly for building a vehicle were all reduced by around a fifth compared with the year before.
It’s an achievement all the more noteworthy given Britain’s auto factories simultaneously produced a record volume of electrified vehicles last year – green growth that reflects the UK’s position as a leading location for sustainable advanced manufacturing. With fierce competition between countries around the world, all seeking to lure new investment into their own sectors, the UK must continue to offer the best businesses conditions for global manufacturers to come here and realise their full potential.
We look forward to working with the new UK government to deliver more green growth and, given the already published Automotive Sector Plan reflects our industry’s priorities as part of a wider industrial strategy, we now anticipate practical measures that deliver them. As SMMT’s new report sets out, the best measures will make sustainability a competitive advantage – from the provision of clean and affordable energy, to fiscal and regulatory reform that opens up green investment. Resilient supply chains, new skills and free trade deals that ensure access to critical raw materials will also be essential.
And as we look to deliver even greater success in the second half of 2024, I’m delighted to announce our 107th Annual Dinner takes place on Tuesday 26 November. It’s a key event in the UK automotive calendar and we expect to welcome around 1,000 guests from industry, government and aligned sectors – making it an excellent opportunity to network and celebrate what’s already been a memorable year. For further information and tickets, please click here. As always, book your place as soon as possible to avoid disappointment.
