Going green: Top 10 Red Sofa interviews on sustainability

Sustainability has moved from a secondary consideration to a core business concern for players and stakeholders across the automotive industry.

The change has been driven in part by increased consumer awareness of the topic, and through regulation – including widespread, international efforts like the UN’s Sustainable Development Goals (SDGs) and more localised legislation, such as the UK’s ZEV Mandate (which has recently been reviewed and updated). As Ulises Neri Flores, vice-chair of the Expert Group of Sustainable Resource Management at the United Nations explained at ALSC Mexico 2023, the increased emphasis on sustainability can see questions being asked by investors evolving from ‘how much return?’ to ‘how much sustainable return?’, as the topic becomes further embedded in decision-making. 

However, sustainability is a broad topic, and each company approaches its environmental, social and governance (ESG) goals differently. This Top 10 list collates insights from experts at OEMs and tier suppliers to present how industry leaders are embracing sustainability.

Nadine Philipp at BMW on supply chain decarbonisation efforts 

Speaking at ALSC Europe 2025, Nadine Philipp, vice-president, sustainability supplier network at BMW Group, comments that “it is business critical to be sustainable” and explores how the German OEM is taking steps to decarbonise its operations. 

She outlines that product electrification is only one part of the decarbonisation puzzle and can in fact lead to increased supply chain emissions. “If you produce more and more electric vehicles, the footprint actually in the supply chain increases a lot,” she explains, citing CO₂-intensive components like high-voltage batteries, aluminium and steel, which account for two-thirds of BMW’s supply chain emissions. For batteries, this is especially pertinent given the increased investment into EV production lines over 2025.

However, supply chain decarbonisation is a critical part of BMW’s climate strategy, and so Philipp explores several measures being undertaken to solve this problem. These include increased green power deployment, decarbonising the processes behind raw materials extraction and optimising production processes. Philipp notes that changing power deployment could be “the main lever” for reduced emissions – for example, through introducing hydrogen across its fleet – and stresses the need to “increase the quota of secondary raw materials”. 

She also highlights the role of the circular economy: “The cars that are driving on the street today with high voltage batteries are our raw material sources of the future.” BMW is designing cars for circularity from the outset, aiming to close the loop on materials and set the groundwork for more sustainable inbound logistics.

Commentary on collaboration and corridors from Levent Yuksel at JLR 

Also speaking at ALSC Europe, Levent Yuksel, freight operations director at JLR, emphasises the need for collaboration over competition to achieve sustainability goals in logistics. He explains that JLR focuses on “bringing the service providers together… trying to find creative ways” to implement solutions, noting that JLR enables smaller partners to access shared resources like bunkering infrastructure. 

Yuksel also details JLR’s switch to Hydrotreated Vegetable Oil (HVO) fuel across its dedicated fleet, which required “a business case to fund itself.” The switch and its associated price parity were achieved through “a very collaborative approach,” including route optimisation and close work with LSPs.

Green corridors are also a talking point, with Yuksel pointing to the disconnect between regulatory discussions, industry efforts and feasible implementation as being a roadblock to their adoption. Again, collaboration can help this green initiative be implemented: “We need more alliance, more coming together… to generate understanding and the importance of these corridors,” he comments.

Dr Reinhard Baller at Audi and Roman Noack at Helrom discuss the impact of multimodal logistics 

Continuing the theme of collaboration, this joint interview features Dr Reinhard Baller, head of transport planning, inbound at Audi, and Roman Noack, CEO and co-founder of Helrom, discussing a partnership between the two companies that leverages Helrom’s data analysis to increase Audi’s pan-European inbound and outbound rail freight.

The project consolidates volumes between Audi’s Hungarian and southern German plants, replacing 36 daily truck hauls in each direction with rail, saving over 1,000km of road usage per round trip. 

Dr Baller explains that this initiative is part of Audi’s broader Mission:Zero roadmap, aiming to cut CO₂ emissions by 50% by 2030. Part of this roadmap involves moving freight over to other transport modalities, with rail being chosen for its efficiency and environmental benefits. He explains that “we wanted to bundle all these transport volumes and the main part of this... should be handled by train to decarbonise it.” Noack adds that a multimodal approach – using “road on the shorter hauls and rail on the longer hauls” – can benefit all parties through reduced emissions, increased usage of alternative energy methods and the ability to leverage economies of scale when using rail.

Peter Hörndlein at Volkswagen Group Logistics on greener finished vehicle logistics

Peter Hörndlein, managing director of vehicle logistics at Volkswagen Group Logistics, outlines several key strategies to make finished vehicle logistics more sustainable in this Red Sofa. 

Hörndlein emphasises the need for a flexible, transparent, efficient and sustainable logistics network, stating, “You cannot have the one without the other – it’s like four dots that need to be connected.”

To that end, the Group has made structural changes, such as developing a new port in the Mediterranean to reduce lead times and carbon emissions. It also implemented an “area concept” for road transport, where loads are assigned dynamically to available providers. “It increased the flexibility significantly,” he comments. 

Increased transparency has been another priority. Volkswagen has developed dashboards and KPIs to better track inventory and respond proactively to disruptions. Hörndlein explains that this increasingly data- and digital-led approach has allowed teams to “react quicker to disturbances and challenges.” Similarly, the Group shifted from static capacity and demand forecasts to more dynamic updates, allowing earlier detection of shortages or overcapacities and leading to increased efficiency.

For short-term sustainability, Hörndlein sees three major levers: “Shift as much on rail as possible,” expand e-truck usage, and invest in liquid natural gas (LNG)-powered ships – already 50% of the VW Group controlled fleet uses LNG. Looking to 2030, he stresses openness to evolving technologies like ammonia, synthetic and biogenic fuels, with optimism for rail and e-truck infrastructure expansion: “This will be the new normal.” 

GKN’s Chris Payne on demand drivers for change

Speaking at ALSC Europe 2025, Chris Payne of GKN Automotive argues that success in sustainability hinges on building win-win logistics partnerships where OEMs take the lead in driving demand for greener, more resilient supply chain solutions. 

He outlines how the company has shifted from a centralised in-house 4PL model to a more localised, partnership-driven approach and this transformation has enabled closer collaboration with LSP, encouraging deeper integration and mutual understanding. “We needed them to understand our business more… so they can support our teams locally,” Payne explains, emphasising transparency and shared goals. 

A key sustainability driver highlighted is co-creation with logistics partners. By fostering proactive communication and shared data, GKN aims to better manage demand volatility and disruptions. There is the need to simulate scenarios and identify risks as early as possible, as “disruption is the new normal,” he states. He stresses that sustainability can only be achieved through early adoption and collaborative experimentation, adding that “if we don’t create a demand, then these solutions don’t evolve.” 

Looking ahead, Payne sees intermodal transport as critical to reducing emissions, but acknowledges current trade-offs: “Sustainability generally means more expensive, slower transit times,” which conflicts with KPIs like cost and delivery speed. However, he believes early action will help reduce costs over time. “We all need to start testing these new solutions and showing some commitment,” he states, positioning sustainability as a shared responsibility that demands innovation, flexibility and transparency.

Christoph Hartmann at Volkswagen Group Logistics discusses sustainable and digital transformations

Speaking at ALSC Mexico 2024, Christoph Hartmann, head of Transport Networks, VW Group Logistics highlights the growing role of digital tools in the Group’s logistics network, as well as sustainable initiatives being undertaken.

For the latter, he explores the Group’s usage of digital twins in Europe. “We’re able to identify transports coming towards us, what they have loaded and if they are too late – even allowing them to automatically enter plants once all the data is ready,” he explains. This innovation significantly reduces delays and improves efficiency, which is crucial in manufacturing environments where downtime is costly. 

While this digitalisation strategy is well advanced in Europe, Hartmann acknowledges that applying the same systems globally requires sensitivity to regional differences, outlining that it “needs some very thoughtful planning.” 

Exploring the Group’s approach to sustainability, he outlines the importance of avoiding unnecessary transport as the first and most impactful step: “Every transport not driven pays in 100% to sustainability.” He also discussed expanding intermodal transport and increasing rail usage to cut emissions. “Train transports significantly reduce emissions, even when running on diesel-electric,” he adds. 

CATL’s Saba Azizi on the benefits of a diverse workforce in an increasingly digital landscape

Despite the focus on decarbonisation, it is only one pillar of sustainability. The ‘social’ pillar of sustainability is equally important – for many companies, this involves awareness of and investment into their employees. 

 In her Red Sofa, Saba Azizi, overseas service network and development manager for CATL, narrows down on this pillar by exploring the transformative power of diversity in today’s global automotive industry. She emphasises how embracing diverse backgrounds fosters innovation, adaptability and customer satisfaction. 

“Diversity... whether in people's skills [or] culture... is essential to driving innovation,” Azizi comments, especially amid digital transformation. She notes that in a rapidly evolving industry, marked by electrification, automation and globalisation, “we need a diverse team... to understand the customer demand better." This diversity enables CATL to serve clients across more than 140 countries, allowing local market insights to inform global strategies. 

The Red Sofa also features advice to industry leaders: prioritise equal opportunity and build inclusive environments where “everyone feels valued and welcome.” “Leadership is not only lifting the ladders; it’s about rising the people as you rise,” she adds.

Harry Kwakye Davies on leveraging DEI initiatives to boost supply chain resiliency

Procurement, logistics and supply chain expert Harry Kwakye Davis’s Red Sofa further builds on this facet of sustainability by exploring how diversity enhances resilience across the automotive supply chain.

He argues that diverse teams bring varied perspectives that foster innovation and agility, crucial for navigating disruption. Diversity must be built into hiring, from inclusive job descriptions to removing biases in age, gender and religion, he adds, stating “that’s the only way we can get the creativity and innovation we need within the workspace.” 

Davies noted that diversity isn't limited to human capital. It includes ensuring ethical, inclusive practices across all supplier tiers. “Diversity and inclusion is not historically just about the humans... we must look at the processes we are using in sourcing,” he explained, highlighting the importance of fair labour and equitable sourcing, particularly in regions vulnerable to exploitation. 

“If we diversify where we source raw materials from, then we don’t lean into a specific geographical region,” he explains, pointing to geopolitical crises like the Covid-19 pandemic and Red Sea conflicts that disrupted global supply. By embracing diversity across people, suppliers and technologies, Davies believes companies can build flexible, sustainable supply chains ready for the next disruption. 

Empowering excellence for women in the supply chain 

In this joint Red Sofa, we hear from three industry leaders: Sabine Isenbort, manager of inbound logistics operations at Ford Europe; Isa Kalinska, lead of logistics and distribution at JLR; and Sonia Santors, vice-president of worldwide manufacturing at Bosch. The three panellists emphasise the importance of diversity, mentorship and values in advancing women’s careers in the automotive sector and reducing inequality – important facets of sustainable development.

Mentorship is one tangible way this can be encouraged. Isenport explains that this was pivotal in her journey at Ford: “From the beginning onwards I had a mentor… someone who gave me advice, the first network, the first integration.” Santors, similarly, shares how she does the same for the next generation, offering a one-to-one “mentoring networking platform.”

Fostering a sense of community is another important driver, with Kalinska advocating for women at every stage of their career to leverage events and conferences to “build relationships and create this ally network.” She also offers advice to leadership on how growth environments can be created. Women should be given the platform to “show what they are capable of” and opportunities to do so should be encouraged wherever possible.

Christopher Ludwig at Automotive Logistics contextualises sustainability amidst crises

Crossing over from his usual role of interviewer to interviewee, Christopher Ludwig, chief content office at Automotive Logistics, explores sustainability in a wider context. His Red Sofa provides a holistic overview of the transformative pressures shaping the automotive supply chain, where sustainability, resilience and digital innovation are increasingly inseparable. 

Reflecting on recent global disruptions – including the Covid-19 pandemic, changing tariffs and extreme weather – Ludwig emphasises that the industry must evolve. “It would... be the worst if you didn’t learn anything from them,” he comments. He also highlights how crises have catalysed investments in visibility, data infrastructure and AI to react faster, as well as anticipate and mitigate future risks. 

Sustainability, he argues, is not a separate agenda but deeply linked to compliance and competitiveness. Discussing due diligence on forced labour and emissions, he noted, that it is a “happy coincidence” that the information required for reporting can be “leveraged elsewhere.” underscoring the dual value of ethical sourcing and efficiency.