THE ENVIRONMENTAL ISSUE FACED BY THE AUTOMOTIVE INDUSTRY: FROM A REGULATORY-PULL PERSPECTIVE TO A BUSINESS-PUSH IMPLEMENTATION

Abstract

In recent years, institutions and regulatory systems all around the world have tried to raise awareness on environmental damages to the most impactful industries. Strict decades-goals are fixed but the path of achievement seems hard and unclear. Although in the beginning companies did the minimum necessary to comply with those limits by having a passive attitude, recently they have begun to independently implement an action plan to cope with the environmental issue. This thesis will try to define what for many years have been green policies and fiscal guidelines and how companies are trying to respond to one of the major problems of the 21st century. Chapter one will be dedicated to give an overview of the automotive industry, starting from a historical background to the identification of the main industry players. Chapter two will outline the main environmental problems and challenges faced by the automotive industry, discovering also to the main barriers that limit the going green transformation. Chapter three will figure out the role of institutions and how they are addressing the issue at a regulatory level, and will try to understand how agreements between various countries can prevent the irrevocable collapse of the world we live in. Chapter four will analyse in detail which supply chain solutions car manufacturers are implementing to reduce the environmental impact of cars throughout their life, from production to recycling. Finally, chapter five will analyse the application of what has been said in previous chapters through the study of a real case, Toyota Motor Corporation, which represents the perfect example of “Valeuism”, namely making profit without taking an hurtable advantage of the environment.