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To date, almost all news articles pertaining to ESG issues in the autos industry have focused on the ‘E’ – driving the fight against climate change through the reduction of carbon emissions, amongst other things – but little attention has been paid to the social implications of pushing these environmental issues. The E, S and G components are all equally important, and it is essential to remain cognisant of the ramifications of promoting one over another.
Politicians have been able to avoid this discussion so far, because the industry has been benefiting from benign macroeconomic conditions, generating handsome profits to pay for the transition costs from internal combustion engine vehicles (ICE) to electric vehicles (EV).
But the cycle, which had already started weakening globally before Covid, is now firmly in reces…