ICT firms mostly conceive the future cars as computers on wheels. On the other hand, the traditional automotive players are making all out efforts to hold their ground. I assume besides elaborate and sophisticated craftsmanship, carbon neutrality can be a vital differentiating factor for traditional automotive makers.
The EU, spurred on by car makers, has stipulated a carbon emission standard of 95 grams per kilometer for passenger cars. How should the supply chain of the Asian IT industry respond? Under the pressure of rapid penetration of EV, traditional automakers will advertise "carbon emissions" compliance as a competitive edge. Asian automakers have long been defining their ESG architecture and developing new business paths in advance, while Asian IT manufacturers are still exploring the business opportunities of EVs, which have yet to become their main business sector.
Take Hyundai for example. They have delved into carbon emissions plans for the luxury Genesis series up to the 2040s. The roadmap of these products and the related supporting operation can hardly be found in newcomers to the carmaking industry. For Taiwanese manufacturers, the ability to participate in diverse business models with a broader vision is the significant success element in future competition.
Hyundai seeks to challenge Lexus's equivalent EV series with luxury Genesis cars. Hyundai estimates their accumulated carbon emissions will reach 120 million tons before achieving carbon neutrality in 2045, with 3% coming from their own plants, 17% from the supply chain, and 80% from the process of sales and use of vehicles.
Hyundai plans to switch current production lines from fossil-fuel vehicles to EVs. Through adoption of 100% renewable energy and EV production for its plants, Hyundai is implementing its long-term carbon reduction strategy. Hyundai Motor anticipates that it may be the most critical moment for the "carbon credit" competition during 2030-2040. Hence, it is necessary to accelerate carbon neutrality operations and fully replace the cars sold in Europe with EVs. In addition, it also plans to distribute EVs in all major markets including North America, Japan, and India by 2040.
Carbon emissions have become a very hot topic lately and resulted in internal cost overrun and risks on account of external pressures. Besides Hyundai's example, we can develop and plan for long-term carbon-neutrality solutions from the reports released by global leading players. TSMC has organized an ESG committee composed of top executives to comprehensively address environmental and social issues. Apple's Environmental Progress Report is committed to total carbon neutrality by 2030, with statements stressing "carbon emissions are an unprecedented challenge and responsibility."
If you want to go fast, go alone; if you want to go far, go together. How should Taiwan realize net zero carbon emissions and carbon reduction?
