SUPPLY CHAIN OPERATIONS AND ENERGY
“ If you ask me the one element we haven ' t got right yet , is a well thought out , inclusive of social environmental considerations , land use planning exercise on the ground ”
MARCO LAMBERTINI DIRECTOR GENERAL , WILDLIFE FUND INTERNATIONAL
know it , creating new sources of value while shrinking others ," it states .
For the fast-changing automotive sector , three key challenges are highlighted :
• There are emissions derived from use of the technology throughout vehicles ' life cycles , such as the burning of fossil fuels in power generation , or the use of electricity in running a battery EV
• Second , the emission intensity of each technology will depend , to a certain extent , on the choice of material ( for example , steel versus aluminium in the case of vehicles ).
• Third , even when using the same material , choice of supplier can make a significant difference , since the carbon footprint of the same commodity can vary greatly depending on its origin .
Price incentives The trajectory toward materials availability will not be a linear one and McKinsey expects materials shortages , price flyups , and , given the inability of supply to react quickly , the need for technological innovation and substitution of certain metals ( possibly at the expense of performance and cost of the end-use application ).
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