How the German car industry became more sustainable and what to learn from it

Following the 2015 emission scandal, German automotive firms implemented sustainable supply chain management (SSCM) to address transparency gaps and stakeholder pressures. Based on an analysis of 54 sustainability reports from 2014 to 2019, the authors identify a nine-step organizational change process divided into three phases: planning, execution, and stabilization. This framework allows firms to integrate economic, environmental, and social issues into their supply chain operations to mitigate sustainability breaches and improve reputation.

• The German automotive industry accelerated the implementation of sustainable supply chain management (SSCM) as a response to the 2015 emission scandal and subsequent stakeholder pressures.
• The first stage of the SSCM framework is 'planning', which aims to dismantle old organizational structures and routines through three steps: developing a clear strategy and goals, establishing cooperation with competitors and external parties (such as NGOs or industry associations), and defining minimum sustainability requirements for suppliers across social, ecological, and economic dimensions.
• The second stage, 'execution', transitions the organization to a new state through five steps: installing communication tools for supplier feedback, conducting initial sustainability risk assessments, performing compliance checks (such as external audits or Codes of Conduct), developing standard escalation processes for non-compliance, and providing training for internal and supplier personnel.
• The final stage, 'stabilization', ensures new processes are anchored in the organization through the continuous monitoring, reassessment, and improvement of SSCM, which involves regularly repeating the entire change process to question existing strategies and standards.

APA

Wissuwa, F., & Durach, C. F. (2022). How the German car industry became more sustainable and what to learn from it. World Economic Forum. https://www.weforum.org/stories/sustainable-development/german-car-industry-sustainable-supply-chain/

Chicago

Wissuwa, Florian, and Christian F. Durach. How the German car industry became more sustainable and what to learn from it. World Economic Forum, 2022. https://www.weforum.org/stories/sustainable-development/german-car-industry-sustainable-supply-chain/.

Wikipedia

{{cite report |last1=Wissuwa |first1=Florian |last2=Durach |first2=Christian F. |title=How the German car industry became more sustainable and what to learn from it |publisher=World Economic Forum |date=29 September 2022 |url=https://www.weforum.org/stories/sustainable-development/german-car-industry-sustainable-supply-chain/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wissuwa2022how, author = {Wissuwa, Florian and Durach, Christian F.}, title = {{How the German car industry became more sustainable and what to learn from it}}, institution = {World Economic Forum}, year = {2022}, month = sep, url = {https://www.weforum.org/stories/sustainable-development/german-car-industry-sustainable-supply-chain/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }