Major investments are needed to decarbonize the automotive industry. Manufacturers and suppliers are particularly dependent on investors and banks for financing. These in turn have an economic interest in hedging their investments against risks. Climate risks are increasingly playing a role in this. Climate protection-oriented investors can thus make a decisive contribution to accelerating the decarbonization of automotive companies. At the same time, only automotive companies whose business models and strategies are consistent with the goals of the Paris Climate Agreement offer investors and banks protection against climate-related risks.
So how can investors and banks take a leadership role in achieving the Paris climate goals in the automotive sector? With this discussion paper, we focus on the potential for investors and banks to take a leadership role in decarbonizing the automotive industry. On behalf of Agora Verkehrswende, the Institute for Sustainable Capital Investments (NKI) has developed initial approaches on how this can be leveraged.