A new report from environmental advocacy groups indicates significant improvements in electric vehicle supply chains, with Tesla at the forefront. The study highlights advancements in sustainable sourcing and human rights, though challenges remain across the industry. Chinese brands like BYD and Geely showed the most progress this year.
The 'Lead the Charge' report, now in its fourth year, was produced by a coalition including Transport & Environment, Sierra Club, and Public Citizen. It evaluates the top 18 automakers on fossil-free and environmentally sustainable supply chains, as well as human rights and responsible sourcing. These categories cover steel, aluminum, mineral and battery sourcing, along with indigenous and workers' rights.
Since the report began, automakers have nearly doubled their scores on environmental and human rights impacts in supply chains. Twice as many now take steps to respect indigenous peoples' rights compared to the initial year. The assessment shows marked improvement across the industry for the third consecutive year, driven partly by European regulations on sustainable battery production and steel.
Tesla leads the rankings, followed closely by Ford, Volvo, Mercedes, and Volkswagen. These top performers, early adopters of EVs, demonstrate stronger progress than average. The report notes that scores mirror emerging EU regulations.
Chinese automakers BYD and Geely made the most improvement this year, boosting the overall Chinese industry's standing despite laggards like SAIC and GAC. Japan ranks low environmentally but performs better on human rights. Toyota places third-to-last, with Honda and Nissan slightly ahead.
The hypothetical 'best-in-class' score, based on top subcategory performances, reaches 86%—higher than any single automaker achieved. This suggests substantial progress is possible by adopting existing best practices. The full report is available on the Lead the Charge website.