ESG compliance & the EV industry's supply chain

Levent Ergin is the Global Chief ESG Sustainability Strategist & Global Head of ESG Strategic Alliance Partnerships at Informatica. 

Informatica is an Enterprise Cloud Data Management leader, which ‘brings data to life by empowering businesses to realise the transformative power of their most critical assets’. Based in Redwood City, California, the company was founded in 1993. This year, the company won Newsweeks ‘America's Greatest Workplaces 2023 for Diversity’.

Here, Ergin shares his predictions for the EV sector, from batteries to ESG, data to the supply chain.

Levent Ergin, Global Chief ESG Sustainability Strategist & Global Head of ESG Strategic Alliance Partnerships, Informatica. 

The importance of ESG compliance in the EV industry's supply chain

Ergin believes that there will be an increased focus on traceability and sustainability in the EV industry's supply chain. 

“With the European Union's Battery Regulation Amendment set to take effect in 2027, all EV and industrial batteries on the EU market will require a unique battery passport, identifiable with a QR code. This amendment aims to enhance the environmental protection standards by reducing hazardous materials in batteries and increasing recycling rates.”

But in order to support compliance with the EU Battery Passport Regulation, companies must be able to trace each battery through its entire lifecycle. 

“This means they essentially need to do a deep dive into the Scope 3 carbon emissions for the battery and capture the carbon emissions upstream and downstream. Combine this with ESG supply chain regulations (such as the German Supply Chain Act and the Corporate Sustainability Due Diligence Directive) and it’s easy to see why EV companies must have robust supply chain due diligence capabilities in place. They need to be able to report on and mitigate social risks and environment risks. For example – is there any forced labour or child labour within the EV supply chain? Can they report on overall labour practices? Do they have full visibility on all environmental risks? Lithium mining is a water intensive process – how was the waste treated, for example?”

Ergin believes that this all comes down to data. Without the right tools and strategy in place to capture, measure and report on ESG data, the EV industry will find it challenging to comply with upcoming regulations.

“As demand for better sustainability practices grows, so does the importance of transparent and reliable data. All organisations in the EV industry need to be able to leverage clean, valid and transparent ESG data to respond quickly to regulatory requests and demonstrate their progress and credentials to the public. With an intelligent approach to data management, businesses can streamline compliance and access real-time, trusted, relevant ESG data, at speed - no matter where it resides in their organisation."

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