Life Cycle Assessment in the Automotive Industry : Considerations for First-Tier Suppliers

Abstract: Climate change is increasingly gaining the attention of governments, companies, and the general public. Many original equipment manufacturers (OEMs) have set their own milestones to achieve carbon neutrality, as early as 2039 (Daimler, 2018). This presents a competitive opportunity for first-tier suppliers to aid the OEMs with their targets. Life cycle assessment (LCA) is proposed as an approach that provides visibility into the potential life cycle impacts of a product. LCA methodology as defined and described by ISO 14040:2006 and ISO 14044:2006 is general. Therefore, methodological choices specific to the application need to be considered and defined. This thesis attempted to address this issue for first-tier suppliers in the automotive industry by compiling the current practice in industry and academia. A literature review was conducted, LCA reports from OEMs were studied, standards on LCA were consulted, and two OEMs and an organisation representing suppliers were interviewed. The findings from these methods were compiled and discussed. From the discussions, key recommendations were made on how a first-tier supplier might conduct an LCA study, following the methodology from ISO 14040:2006 and ISO 14044:2006.