Automotives & Manufacturing

The automotive and manufacturing sectors are navigating a demanding period. Tariff uncertainties, export controls and supply chain volatility have disrupted long established operating models and compressed margins. Sustainability teams are tasked with making tough decisions despite progress in recent years on circularity, resource efficiency, and climate.  

The sector depends heavily on natural resources, from lithium, nickel, cobalt, and rare earth materials that power electric vehicles to the rubber, minerals, timber, and water that underpin manufacturing. Degradation of natural systems can make supply chains less reliable and input costs can rise. At this point, nature-related risks can become operational and commercial risks.  

Scale of influence 

Automotive and manufacturing companies can also have significant leverage, strengthened through partnerships. Sitting at the centre of complex global supply chains and with high dependence on mining and energy sectors, they have wide influence over how raw materials are sourced, how components are produced, and how end-of-life materials are recovered. This influence is an opportunity to set standards, engage collaboratively on research and development, and reduce nature-related risk across the whole value chain.  

Regulation, market expectations and transparency 

While rapidly evolving, the overall regulatory direction is also clear. The EU Battery Regulation requires due diligence on raw material sourcing, strengthened traceability and better material recovery. The Corporate Sustainability Reporting Directive (CSRD) and Taskforce on Nature-related Financial Disclosures (TNFD) are expanding nature disclosure expectations across the value chain. Companies that act now will be better placed to meet these requirements and avoid the cost of catching up later.  

Our expertise 

The Biodiversity Consultancy works with automotive and manufacturing clients to translate nature-related risks and opportunities into actionable strategy. We help companies understand where their dependencies and impacts on nature sit – across operations and supply chains – and what this means for resilience, compliance and long-term value creation.