Automakers are making progress in decarbonising electric-vehicle supply chains, with Tesla leading the effort, an analysis showed.

Electrek reported on March 3 that the Lead the Charge report, jointly produced by environmental and social groups, found global automakers have made progress for a third consecutive year in decarbonising EV supply chains and improving human rights. It also said gaps between top and bottom performers are widening and that implementation remains low compared with declaratory goals.

The report covered 18 major automakers worldwide, with participation from European clean transport policy campaign group Transport & Environment and U.S. environmental group the Sierra Club. It assessed a total of 80 indicators, including carbon emissions in procurement of steel, aluminium, batteries and critical minerals, as well as workers' rights, protection of Indigenous peoples and responsible mining practices. The automakers' average score this year was 24 percent for eliminating fossil fuels from supply chains and environmental sustainability, and 27 percent for human rights and responsible sourcing, up slightly from a year earlier.

Tesla ranked first with 49 percent, followed by Ford with 45 percent, Volvo with 44 percent, Mercedes-Benz with 41 percent and Volkswagen with 39 percent. The report gave these companies positive marks for presenting relatively concrete action plans on improving battery supply chains and emissions-reduction strategies.

Toyota, Honda and BYD stayed in the lower tier. Some companies scored 0 percent on decarbonising steel supply chains, drawing criticism for a lack of substantive action. China's Geely and BYD posted the biggest improvements this year, lifting their rankings. Only SAIC Motor and Guangzhou Automobile Group scored lower than Toyota, while Honda and Nissan also ranked near the bottom.

The report put the score of a hypothetical best-in-class performer at 86 percent. It said that level would be achievable by fully adopting best practices already in use across the industry. The report said top companies show what is possible, but that significant effort is needed to secure full sustainability in EV supply chains as the overall average remains in the 20 percent range.

The report also rejected claims from some quarters that EVs emit more carbon in the production process. It said a large portion of a car's total carbon emissions occurs during driving, while the share from production is relatively low. It stressed that steel and aluminium are key materials widely used in both internal combustion and electric vehicles, and that decarbonising those industries plays an important role in cutting the overall carbon footprint of car manufacturing. Regulations such as European policies on sustainable batteries and green steel were also cited as factors driving some improvement.