Spotlight on the Carbon Footprint:  How Companies Can Master the UNECE Standard for a Sustainable Automotive LCA

The Importance of UNECE Requirements for Automotive Manufacturers and Suppliers

The conditions facing the automotive industry are changing due to environmental challenges and the transformations taking place within the sector. Electromobility, climate neutrality, new OEMs, and the digitalization of vehicles with new data, services, and business models are increasing the complexity of products and regulatory requirements.

The UNECE World Forum for Harmonization of Vehicle Regulations – or WP.29 for short – is a permanent working group within the UNECE that specializes in the regulation of motor vehicles. It serves as a global forum in which open discussions about regulations for motorized vehicles take place. All UN member countries and regional economic integration organizations established by UN member countries can participate in the activities of WP.29 and become contracting parties to the vehicle agreements managed by WP.29. Both governmental and non-governmental organizations are permitted to participate in WP.29 and its sub-working groups in an advisory capacity.

WP.29 aims to harmonize technical regulations worldwide. As international regulations vary, manufacturers have to adapt their vehicles to the respective markets to ensure product compliance and comparability. This incurs additional costs. Harmonization allows manufacturers to produce vehicles that meet uniform requirements regarding product, certification, and liability. For this reason, the UNECE regulations are becoming a prerequisite for approval in many markets.

The UNECE Approach to Automotive Life Cycle Assessments

On the initiative of the governments of Japan and South Korea, WP.29 aims to establish a uniform global LCA standard for the life cycle assessment of vehicles. An international committee of institutions, associations, government, and industry representatives is currently developing guidelines for this purpose. These guidelines relate to raw materials and supplies, parts manufacturing, vehicle production, use phase, end-of-life as well as the upstream chains of energy and fuel production.

In a life cycle assessment, the carbon footprint of a product is examined over the entire life cycle – from raw materials and energy production, through production and use phase, to recycling. This holistic view mainly focuses on CO2 emissions and is defined by standards such as the GHG Protocol, ISO 14067, and others. In practice, however, when preparing an LCA, different assumptions and demarcations are made in terms of methodology and underlying emission factors, making it difficult to compare the results.

The UNECE Automotive LCA Standard: The Status Quo and Further Negotiations

The UNECE WP.29 has been working on drawing up the LCA for automotives since the beginning of 2023. In the 15 conferences that have taken place so far, representatives have defined the structure, listened to presentations and statements, and agreed upon the common objective. Subgroups are now working on fleshing out the system boundaries, assumptions, and methods. The agreed drafts are to be put into writing in 2024 and are due to be adopted as a resolution for all vehicle classes in 2025. The regulations will then be adopted by the EU and/or national governments and incorporated into their own laws. Thus, the regulation will become part of the vehicle type approval. Research is currently being carried out on existing standards and methods.

Implementing LCA Standards: Challenges Facing the Automotive Industry

The implementation of the new standard in accordance with the requirements of UNECE WP.29 poses a number of challenges for the automotive industry. These include both technical and organizational aspects that need to be carefully addressed by companies. The industry needs to focus on two key areas: firstly, the implementation of the standards and secondly, the establishment of processes that enable valid verification of product conformity.

Implementing the UNECE requirements and embedding processes to validate product conformity

Automotive manufacturers face specific challenges when it comes to implementing the UNECE requirements and establishing processes to validate product conformity. These challenges range from the need to establish new data and reporting processes to managing the high administrative burden. Each of these points requires careful consideration and specific solutions:

• Establishing new data and reporting processes
  Companies may struggle to adapt existing systems or integrate new processes. One solution would be to introduce specialized software solutions and training for employees to ease the transition.

• Administration and resources
  Implementing complex regulations requires additional human and financial resources. Companies need to plan strategically and consider hiring additional talent to handle these demands.

• Uncertainty due to a lack of end-to-end processes and IT solutions
  This can lead to inefficient process flows. The introduction of integrated management systems and investment in IT infrastructure could help to minimize these uncertainties.

• Inefficiencies and failures in integration, auditing, and approval
  Effective risk and quality management can help minimize errors and increase efficiency.

• Impact on product compliance management
  Regular audits and compliance training can help raise awareness of compliance requirements and mitigate risks.

Preparing future type-specific life cycle assessments

One major challenge in preparing future type-specific life cycle assessments is the efficient collection and processing of a large amount of relevant data from various sources. To overcome this challenge, companies can deploy automated data collection systems to facilitate efficient data collection. In addition, close cooperation with suppliers is crucial to ensure that all the required data is both available and accurate.

As such, it is extremely important to adapt to these challenges at an early stage and to support companies with appropriately optimized processes and system landscapes. When it comes to implementing the automotive LCA, a long-term approach involving various stakeholders to ensure, monitor, and control compliance is required. At the same time, this can give companies a competitive edge in an increasingly regulated and environmentally conscious industry.

MHP: Your Partner for Compliance and Sustainability in the Automotive Industry

MHP is a proven partner, supporting OEMs in the implementation of CSMS, SUMS, and WLTP requirements, among others. We have an experienced team of experts who specialize in UNECE requirements. During our structured business review, we assess the maturity level with regard to product compliance expertise. To this end, we offer services including: conducting interviews with specialists and executives; analyzing data, systems, and processes; developing a target operating model and accompanying its subsequent implementation and operationalization; and offering support in project management and documentation.

MHP also supports OEMs in their sustainability transformation and offers technical expertise in the collection and validation of data, the implementation and automation of LCAs. Additionally, MHP assists in embedding sustainability KPIs in environmental management systems and product development processes.

UNECE Automotive LCA: A Bridge on the Road to Climate Neutrality in the Automotive Industry

“You can’t manage what you can’t measure” is a well-known saying in business and science. This is why the UNECE WP.29 is drawing up an LCA standard that is intended to make comparisons easier and, as a result, to improve the automotive industry’s contribution to ambitious climate targets. The binding nature of the UNECE requirements and the complexity of life cycle assessments in particular are having a high impact on the industry. Fulfillment must be anchored within systems and processes across multiple company divisions and needs to be accompanied by risk and change management processes during implementation.

MHP has been supporting OEMs in the optimization of processes, systems, and compliance management as part of our end-to-end approach for over 20 years. We carefully monitor developments and are more than happy to discuss potential requirements and aspects of implementation within your company.