Source · Select Committees · Public Accounts Committee
Recommendation 4
4
The Departments have not yet demonstrated how they are going to encourage industry to maintain...
Recommendation
The Departments have not yet demonstrated how they are going to encourage industry to maintain proper environmental and social standards throughout their supply and recycling chains as the zero-emission car market grows. There are a range of environmental impacts and costs affecting the growth of zero- emission cars, including the materials used to make a car and the stability of the associated supply chains, the carbon impact from where a car is manufactured, the emissions and the eventual recycling challenge. The Department for Transport says it has analysed the results of studies examining the lifecycle emissions of electric cars and found that they are about 30% to 40% lower than cars using an internal combustion engine. The Department tells us that manufacturers are focusing on the environmental and social consequences of making electric cars. The Department reports that manufacturers are looking for ways to develop batteries without rare materials and that it is in their business interests not to source products from areas with unreliable or unethical supply chains. As the number of electric cars being produced increases, pressures on the supply of rare materials may increase, and we are concerned that environmental standards could slip. Recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy should set out their approach to encouraging car manufacturers to maintain proper environmental and social standards throughout their supply and recycling chains as zero-emission cars volumes grow. This includes as examples: Low emission cars 7 • publishing information on lifecycle emissions; • details of relevant reporting standards for manufacturers on environmental and social stewardship; and, • future plans to develop the reporting standards.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2022 4.2 The government is aware of the social, environmental and supply concerns surrounding the mining of raw materials for EV batteries. The vehicle manufacturing industry is global, and as such the government is collaborating internationally on guidance and governance programmes. The government is working to address these concerns in three main ways: 4.3 Technology and recycling: The government and industry are funding research and development (R&D) to reduce, replace and recycle critical raw materials in batteries, and government is supporting initiatives to localise more of the battery supply chain to the UK. This will further improve sustainability and affordability of key chemicals, materials and components. 4.4 International collaboration and guidance: The Faraday Institution, funded by government, participates in the Global Battery Alliance which seeks to address the human, health and environmental challenges of batteries. The Alliance is developing a Battery Passport (to launch at the end of 2022), a digital log of all the information relating to a ‘sustainable’ battery, such as environmental, social, governance and lifecycle requirements, which enables lifelong traceability. Additionally, the government encourages states and those working in the industry to implement the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. 4.5 Responsible sourcing and governance programmes: The Foreign, Commonwealth and Development Office (FCDO) is working directly with civil society and mining companies to ensure responsible sourcing of raw materials and support for programmes that develop innovative approaches for ending child labour and human rights abuses. The Department for International Trade (DIT) also supported the London Metal Exchange in developing responsible sourcing requirements, to which all listed brands must adhere. 4.6 Given the global nature of the automotive industry, the government has no plans to unilaterally set standards.