Porsche has called on its suppliers to switch exclusively to renewable energy or they will no longer receive contracts.

The German car manufacturer has roughly 1,300 suppliers and wants to be CO2 neutral across its entire value chain by 2030. As it stands, Porsche’s supply chain is responsible for 20 per cent of its total greenhouse gas emissions but this is set to rise to 40 per cent by 2030 due to the ongoing electrification of its vehicles.

In a statement, Porsche revealed its requirement for suppliers to use renewable energy applies to any contracts awarded for providing production material for new vehicle projects. If a supplier is unwilling to switch to green energy, it will no longer be considered for contracts in the long term.

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“Our battery cell suppliers have already had to use green energy since 2020. And now we are taking the next important step: we stipulate that our series suppliers also use only renewable energy to produce our components, to help reduce CO2-emissions even further,” member of the executive board for Procurement at Porsche AG, Uwe-Karsten Städter said in a statement. “We recognize that we have a responsibility to ensure that supply chains are transparent and sustainable.”

“By using only renewable energy sources, our suppliers are following our example in our efforts to reach CO2-neutrality,” added Städter. “We plan to have even more intensive talks with our partners in order to drive forward improvements in our sustainability. It is only by working together that we will be able to combat ongoing climate change.”

Porsche has also committed to reducing CO2 emissions from its own plants. The Zuffenhausen plant where the Taycan is built has been carbon neutral since 2019 while all other lines at Porsche’s HQ have been carbon neutral since 2020. In addition, Porsche’s development center in Weissach and plant in Leipzig where the Macan and Panamera are produced have been carbon neutral since the start of this year.