Automakers take demanding roles in Davos First Movers Coalition

Automakers take demanding roles in Davos First Movers Coalition

In Davos-Klosters, Switzerland, this week, the World Economic Forum is holding its annual meeting, gathering the world’s foremost leaders under the theme “Rebuilding Trust.” Within the Forum, a new organization is forming – the First Movers Coalition – which includes three of the world’s largest automakers – Ford, General Motors and Volvo.

Recycled material makes up a large proportion of the materials in new Volvo cars. Nearly 25 percent of all aluminum in Volvo's electric, small SUV EX30 2025, (shown here) is recycled, while 17 percent of all steel and plastic in the car also comes from recycled sources. (Photo courtesy Volvo Cars)

The First Movers Coalition aims to use the demands of global companies to unlock the potential of emerging technologies needed to decarbonize the world by 2050.

The First Movers Coalition, FMC, a global public-private partnership by the World Economic Forum and the United States government to decarbonize the world’s heavy-emitting sectors, announced that it now represents “the largest private sector demand signal for emerging climate technologies in the world,” with more than 120 commitments from 96 members.

World Economic Forum leaders praised the forward-looking corporations involved in the First Movers Coalition.

“THE FIRST MOVERS COALITION IS PROVING THE POWER OF PRIVATE SECTOR COOPERATION TO DRIVE MEANINGFUL CLIMATE ACTION. TOGETHER, FMC’S MEMBER COMPANIES ARE SENDING AN UNPRECENDENTED SIGNAL OF DEMAND, WHICH WILL SERVE TO DRIVE UP INVESTMENT IN AND PRODUCTION OF THE CRITICAL EMERGING TECHNOLOGIES NEEDED TO DECARBONIZE THE MOST HEAVY-EMITTING INDUSTRIAL SECTORS.”   -Borge Brende, president World Economic Forum

Half of the emissions reductions needed by 2050 must come from technologies not yet available at scale, so creating demand for these technologies will be essential to kickstart the market and catalyze their commercial adoption, the FMC reasons.

To support creating demand this way, FMC members have collectively made commitments to purchase near-zero emission goods and services that use breakthrough climate technologies by 2030.

These commitments cover seven sectors – three of them fully transportation-related: aviation, shipping, and trucking, and the other four sectors – aluminum, carbon dioxide removal, cement and concrete, and steel – also of interest to the automakers Ford, GM and Volvo.

By 2030, purchase commitments in these seven sectors will represent an estimated annual demand of US$16 billion for emerging climate technologies and 31 million tonnes (Mt) CO2e in annual emissions reductions.

“The First Movers Coalition is driving critical progress in the some of the hardest to address sectors,” John Kerry, US Special Presidential Envoy for Climate, said. “As members participate in offtake agreements and invest in decarbonization projects in support of the FMC commitments, they continue to give confidence to this market to develop faster.”

“This approach is pivotal in expanding the use and availability of the breakthrough technological solutions that will enable the deep decarbonization of heavy-emitting sectors,” Kerry said, as shown in the image below.

Automakers

Kerry explained, “The coalition has achieved scale across the world’s leading companies and support from committed governments around the world to tackle the hardest challenge of the climate crisis: reducing the emissions from the sectors where we don’t yet have the toolkit to replace unabated fossil fuels and swiftly reach net-zero emissions.”

From 35 members when the First Movers Coalition opened in 2021 at COP26 in Glasgow, Scotland, the coalition has now expanded to 96 members and includes some of the world’s largest companies.

The most recent members to join the First Movers Coalition include four transportation corporations:

  • – Qatar Airways,
  • – Neutron Holdings, Inc., doing business under the name Lime, formerly LimeBike, is a transportation company based in San Francisco, California. It runs electric scooters, electric bikes and electric mopeds in cities around the world.
  • – Volvo Cars, Inc.,
  • – Boom Technology, an American company designing a supersonic airliner named the Boom Overture. The company is developing a one-third-scale demonstrator: the Boom XB-1 Baby Boom

First Movers Coalition new members from other sectors this year include: Velux, The Coca Cola Company, GE Vernova, DP World Limited, Capgemini, Danfoss A/S, Hanwha Ocean, Chooose AS, Drax Corporate Limited and Norsk Hydro ASA.

In 2022, Ford Motor Co. joined the Coalition’s aluminum and steel sectors. “Ford is proud to be a founding member of the First Movers Coalition aluminum sector and is making progress towards our commitment that at least 10 percent of Ford’s primary aluminum and steel purchases will have near-zero carbon emissions by 2030,” said Cynthia Williams, global director of sustainability, homologation and compliance at Ford.

“This is a powerful example of how Ford’s scale and proven industrial expertise can be leveraged to accelerate the shift to EVs and to help build the future of zero-carbon technologies that are good for people and the planet, and good for business,” Williams said.

In 2022, General Motors joined the First Movers Coalition in the aluminum, cement and concrete, and steel sectors, offering to work toward a solution and signal demand support for the development of low-CO2 aluminum and steel products.

Anchored by General Motors, the First Movers Coalition launched an unprecedented set of new commitments under which companies will buy at least 10 percent near-zero carbon cement and concrete by 2030. 

Cement and concrete make up seven percent of global emissions today and are on track to reach nine percent by 2050. This ambitious set of purchasing commitments by First Movers Coalition members will create an early market to stimulate investment in the next generation of technologies needed to decarbonize the cement and concrete sector.

“We know climate change is an urgent priority, and we are advancing toward our bold goal to be carbon neutral in our global products and operations by 2040 so that we can be a part of the solution,”

Kristen Siemen, vice president sustainable workplaces & chief sustainability officer, General Motors, said in the company’s 2022 Sustainability Report.

“We cannot do it all alone; collaboration is key. So, we continue to work closely with others – from governments and policymakers to partners, suppliers and customers – as we take each step toward achieving our all-electric vision and our carbon neutral goal,” Kathi Walker, director, global sustainability strategies with GM, said in 2022.

In total, First Movers Coalition corporate members have pledged US$12 billion, the world’s strongest demand signal, for bringing emerging innovations to scale. These commitments will drive investment in next-generation clean steel, aluminum, and cement; near-zero carbon aviation fuels; zero-emission trucking and shipping; and carbon dioxide removal.

The companies that have stepped forward as First Movers will drive down the cost of emerging technologies and bring them to market this decade in order to decarbonize the sectors of the global economy that produce a third of global emissions.

Automakers

Rob van Riet, who heads the First Movers Coalition, said, “FMC has become the world’s largest, private sector, clean demand signal for emerging climate technologies. Our 95 members have collectively made 120 commitments. By 2030, these commitments will represent an annual demand of US$15 billion for emerging climate technologies and 29 million tonnes (Mt) CO2e (CO2 equivalent) in annual emissions reductions.”

Volvo Cars is expanding its sustainability strategy, setting new ambitious goals for 2030 and 2040. The company is also boosting its focus on biodiversity, and by 2025, the company aims to have 100 percent of its debt linked to its Green Financing Framework or in a sustainability-linked format.

“TAKING ACTIONS TO COMBAT CLIMATE CHANGE IS NON-NEGOTIATIVE AND GOING FULLY ELECTRIC IS AN IMPORTANT STEP ON OUR PIONEERING JOURNEY. AS WE MOVE TO FURTHER REDUCE EMISSINS THROUGHOUT OUR VALUE CHAIN, WE HAVE A RESPONSIBILITY TO DO MORE AND ADDRESS OUR BIODIVERSITY FOOTPRINT AS WELL AS HELP IMPROVE PEOPLE’S LIVES.” == Jim Rowan, CEO, Volvo Cars

Volvo Cars’ new sustainability ambitions for 2030 are to:

  • – Reduce its CO2 emissions per car by 75 percent compared to 2018 levels.
  • – Reduce energy usage in its operations per average car by 40 percent compared to 2018 levels.
  • – Reach 30 percent average recycled content across its fleet, with new car models having at least 35 percent recycled content.
  • – Reduce water use in its operations by 50 percent average per car compared to 2018 levels.
  • – At least 99 percent of all waste from its operations to be either reused or recycled.

Since the release of its sustainability strategy in 2019, Volvo Cars has made progress, and 69 percent of company operations are now powered by climate-neutral energy compared with 55 percent in 2019.

Further, 100 percent climate-neutral electricity is now used across its manufacturing plants globally, compared to 80 percent in 2019. Additionally, Volvo Cars has reduced its CO2 emissions per car by 19 percent since 2018.

Volvo Cars’ goal now is to reach zero greenhouse gas emissions by 2040. This expands upon the company’s previous ambitions of being climate neutral by 2040 and clarifies the company’s intention to use carbon removals only to mitigate any unavoidable emissions. The company’s first priority remains to reduce real emissions before turning to carbon removals and encourages its suppliers to do the same.

2030 is a milestone year for Volvo. By then it plans to be a fully electric car company while also aiming to reduce CO2 emissions per car by 75 percent compared to its 2018 baseline. The company intends to be a circular business by 2040. Volvo believes that through a combination of selling only fully electric cars and reducing emissions by 30 percent from both its supply chain and operations, it will be on track to meet the CO2 reduction goals.

Volvo Cars believes in taking a complete value chain approach to its impact on biodiversity. In addition to taking action to reduce impact, it will also pursue restorative actions. This will require a mix of short-term and long-term measures, such as avoiding and reducing the impacts of the Volvo value chain, designing a program for restoration and conservation activities within ecosystems where it operates and sources from, and working together with supply chain partners to establish awareness on biodiversity issues.

Throughout its value chain, Volvo Cars is working to help safeguard human rights through risk-based due diligence processes to trace, identify, assess and address human rights risks.

Together with like-minded partners, Volvo Cars looks forward to unveiling new social and environmental initiatives in 2024, aimed towards helping protect people and the planet.

This year, the First Movers’ Coalition launched the First Suppliers Hub, a global repository of innovative and emerging technologies and suppliers that are working to meet the FMC commitment thresholds across several key high-emissions sectors. The hub features more than 80 decarbonization efforts that are currently underway and is open to organizations to leverage as they make progress towards their decarbonization goals.

Meanwhile, at Davos, organizers are encouraging mobility on foot and on free local trains and buses. They are discouraging event participants from renting private cars.

The first ever Climate Hub Davos is hosted by the Swiss non-profit GreenUp.

This innovative space brings together people working on climate and nature, and welcomes all those wanting to collaborate and be inspired to do more. With an open foyer and interactive program, you are invited to visit and co-create the climate positive future we need. The Climate Hub is on the Promenade at the beautiful Kulturplatz in the heart of Davos. It is open daily on Tuesday, Wednesday and Thursday January 16 – 18; from 10 am – 5pm.

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