This sector relates to the following sub-sectors: Air Transportation, Automobiles, Marine Transportation, Land Transportation


Each section below relates to the TPT Disclosure Framework principles of Action and Accountability. The below provides further guidance for sub-elements 4.1 and 4.3. The TPT welcomes comments on this guidance to ensure it is as useful as possible for preparers and users. The text is open for comment until Friday, 24 November. Please select the feedback form at the bottom of the page. The final text will be updated in February.

This subsector includes companies involved include in the Automobiles, Auto Parts, and Car Rental & Leasing industries.

Automobiles industry entities manufacture passenger vehicles, light trucks and motorcycles. Industry players design, build and sell vehicles that use a range of traditional and alternative fuels and powertrains. They sell these vehicles to dealers for consumer retail sales as well as sell directly to fleet customers, including car rental and leasing entities, commercial fleets and governments.

Auto Parts industry supply motor vehicle parts and accessories to original equipment manufacturers (OEM). Auto parts entities typically specialise in manufacturing and assembling parts or accessories, such as engine exhaust systems, alternative drivetrains, hybrid systems, catalytic converters, aluminium wheels (rims), tyres, rear-view mirrors, and onboard electrical and electronic equipment. Although the larger automotive industry includes several tiers of suppliers that provide parts and raw materials used to assemble motor vehicles, the scope of this Auto Parts industry includes only Tier 1 suppliers that supply parts directly to OEMs. The scope of the industry excludes captive suppliers, such as engine and stamping facilities, owned and operated by OEMs. It also excludes Tier 2 suppliers, which provide inputs for the Auto Parts industry.

Car Rental & Leasing Industry rent or lease passenger vehicles to customers. Consumers typically rent vehicles for periods of less than a month, whereas leases may last a year or more. The industry includes car-sharing business models in which rentals are measured hourly and typically include subscription fees. Car rental entities operate out of airport locations, which serve business and leisure travellers, and out of neighbourhood locations, which mostly provide repair-shop and weekend rentals.

1. Advance infrastructure and technological development2, 4, 5

  • drive advancements in battery technology to improve energy density and charging speed for personal vehicles; and
  • expand charging and hydrogen refuelling stations specifically designed for automobiles.

2. Accelerate vehicle and vomponent advancement2

  • drive the manufacturing of low-GHG emissions vehicles, including BEV, PHEV, and HEV;
  • collaborate with the auto parts industry to integrate sustainable components, such as efficient drivetrains, hybrid systems, and sustainable tires; and
  • encourage the implementation of circular design principles.

3. Increase operational and demand efficiency4

  • explore and scale new business models (e.g., car sharing and car-riding);
  • utilise smart technologies and data analytics for real-time traffic adjustments and route optimisation.

4. Promote renewable energy integration2, 4, 5

  • encourage the installation of on-site renewable energy sources at car manufacturing hubs and rental station.

5. Shape urban mobility design4

  • collaborate with urban planners to create cities designed for sustainable car usage, integrating efficient road networks and public transport systems.
  • market share of low-GHG emissions vehicles current and planned (across the entity’s product portfolio and split by geography;1, 2, 4, 8
  • set targets for the global share of low-GHG emissions vehicle sales;1
  • a projection of the cumulative well-to-wheel fleet emissions of vehicles sold from reporting year to 2050;1
  • average lifetime of vehicles sold today, weighted by the geography of the sales;1
  • share of SUVs versus sedans in product portfolio;1
  • 1) Total fuel consumed, (2) percentage natural gas, (3) percentage renewable.6
  • emissions reported should reflect real-world vehicle operation. Adjustment factors/formulas of the WLTP can be used if using a different standard;1, 6, 8
  • emissions Intensity for Scope 1, 2 & 3 emissions expressed as gCO2e per passenger kilometre (gCO2e/pkm);1
  • target boundary: SBTi recommends targets should be set on a well-to-wheel basis;1,6
  • set targets for the annual reduction of real-world emissions for new ICE vehicles. 3

Automobiles literature

  1. CDP Worldwide & ADEME, Assessing Low-Carbon Transition: Automobile, 2021
  2. International Energy Agency (IEA),Cars and Vans, 2022
  3. IEA, Net Zero by 2050, 2021
  4. International Council on Clean Transportation, Vision 2050: A strategy to decarbonise the global transport sector by mid-century, 2020
  5. International Council on Clean Transportation, New Mobility: Today’s technology and policy landscape, ICCT, 2017
  6. IFRS, [Draft] Industry-based Guidance on Implementing IFRS S2, 2022
  7. Science Based Targets initiative, Transport Science-based Target Setting Guidance, 2021
  8. Transition Pathways Initiative, Carbon performance assessment of automobile manufacturers: Note on methodology, 2020
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Your feedback

The TPT welcomes comments on the Sector Summary to ensure it is as useful as possible for preparers and users. The Sector Summary was open for comment until Friday 24 November and, following consideration of the feedback received, will be updated in February. Thank you to the industry experts who provided comments.