Investors beware: per € of revenue, truckmakers are more carbon intensive than oil, steel, cars (but not coal!)

(Energy Post, 14 May 2024) Truckmakers are a more carbon intensive investment, per € of revenue, than oil, steel and cars. The only major sector that’s worse is coal mining, says a new study by T&E.

For investors that are counting the emissions of their investments, this will become clear when truckmakers are forced to report their Scope 3 emissions next year. Truckmakers therefore risk losing access to these investors.

Until now, truckmakers have got away with it because the emissions are caused by their customers: the average truck burns through 450,000 litres of fuel over its lifetime, which accounts for 99.8% of a truckmaker’s total carbon impact. Scope 3 reporting will change all that. It also means that switching to making electric trucks will make a big difference. And new EU laws mean truck and bus manufacturers must sell an increasing share of zero-emission vehicles starting from 2025.

The manufacturers who transition fastest will impress investors the most. T&E also note that current EGS scores assigned by ratings agencies fail to represent emissions in a meaningful way. Daimler is the top-performing truckmaker according to Sustainalytics, yet receives among the lowest scores from Bloomberg and S&P. And Mercedes-Benz performs better on Bloomberg’s environmental score than Siemens Gamesa – a wind turbine arm of Siemens.

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Energy Post, 14 May 2024: Investors beware: per € of revenue, truckmakers are more carbon intensive than oil, steel, cars (but not coal!)