Recommendation 19

HM Government Acknowledged

4: PAC conclusion: 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. 4: PAC 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: • 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. 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.