Moving towards a more sustainable Tomorrow
A deep dive into smart's carbon mitigation strategy
In the past 25 years, smart has been committed to responsible development and has anchored the vision and goals for sustainable development in its corporate culture. The brand is committed to balancing its impact on the environment, society and corporate governance ("ESG"). At the beginning of 2022, smart developed a sustainability strategy comprising five strategic pillars: Integrity and Transparency, Product and Privacy, Climate and Carbon, Circularity and Resources, and Employees and Society in line with the UN Sustainable Development Goals and stakeholder expectations.
In the "ESG Report Series", we will be taking a closer look at these five pillars over the coming weeks. Starting today with the important topic of "Climate and Carbon".
Solutions for the urban mobility of the future
Since the brand was founded, smart has dedicated itself to the vision of finding solutions for the urban mobility of the future. An exemplary environmental and energy balance is the top priority. The aim of smart is to develop particularly environmentally friendly and energy-efficient products along the entire value chain. The automotive brand is committed to climate protection and the protection of the environment in accordance with (inter)nationally recognized environmental standards and regulations. This includes a continuous assessment of direct and indirect environmental impacts in order to take appropriate measures to minimize them.
smart paves the way to a carbon-neutral future
One of these measures concerns decarbonization. Under the Climate and Carbon pillar, a life cycle assessment ("LCA") system has been introduced to better understand the life cycle emissions of products. Based on ISO 14010 Guidelines for Environmental Assessment and ISO 14067 Greenhouse Gas - Carbon Footprint of Products, smart has developed the LCA methodology and solid data sources for calculating the life cycle emissions of its products. Now and in the future, LCA will also help to monitor trends within the supply base and show how models and technologies are evolving.
“Decarbonization is at the core of smart’s DNA and in our mission. We actively pursue low-carbon and green ideas along the entire value chain and create sustainable community activities with users, the public and stakeholders. Together with our partners, we are looking for the best solutions for the urban mobility of the future in order to shape a smarter and more sustainable future together,” says Dirk Adelmann, CEO smart Europe.
First "Zero Carbon Factory"
In October 2022, the smart manufacturing factory with a green area of 296,550 square meters was designated as a "Green Factory". The entire factory is equipped with a 52 MW super photovoltaic power generation system with an annual power generation capacity of about 55 million kilowatts, which can reduce CO2 emissions by about 27,000 tons. The emission reduction effect is equivalent to cutting down 3,196 hectares of forest, and 55% of the electricity will be fed into the local power grid in the future.
This led, alongside other things, to the smart production plant being awarded the first "Zero Carbon Factory" certification among Chinese car manufacturers thanks to the photovoltaic system and the acquisition of the international environmental certificate I-REC, a global standard and certification system for documenting and tracking the generation and consumption of renewable energy. The certification body scored the factory on six indicators: infrastructure, energy and carbon management system, energy and resource use, products, GHG emission reduction and carbon offset implementation, and awarded the factory a five-star Zero Carbon Factory (Type I) Certificate.
And these efforts are also reflected in the European subsidiaries and offices. Already, smart Europe offices in Germany, the Netherlands and Italy are powered by 100% renewable energy.
Carbon-neutral car by 2045
smart is developing new smart premium electric products that enrich citizens' choices for sustainable urban mobility and a sustainable lifestyle. As part of this, the brand has committed to offering the market a climate-neutral electric vehicle model by 2045. A first step in this direction: the smart #1 battery was awarded the first EU carbon footprint certificate according to PEFCR and ISO 14067, which proves that the smart #1 meets the EU export-related carbon footprint disclosure requirements. While smart operates with a low carbon footprint, the brand will continue to drive the transition to lower CO2 emissions throughout the value chain, actively explore low-carbon technologies and solutions with partners, promote the development of new low-carbon models, introduce environmentally friendly production processes and drive sustainable development across the industry.