A fundamental transformation of the automotive industry is needed to meet the internationally binding climate targets for transport. Only if companies can demonstrate that their business activities and strategies are compatible with the goals of the Paris Climate Agreement will they deliver planning and investment security - as they are not vulnerable to changes in the climate policy framework. Investors play a crucial role in this: With their investment decisions, capital providers can influence companies to design their business models in a climate-friendly and sustainable way.
A large number of international standards and company assessments already exist, but they only help investors to a limited extent in evaluating automotive companies. For example, they usually focus on evaluating the current state and disregard the future viability of the business model, although this plays an important role especially against the backdrop of increasing climate protection requirements.
As part of this project, we are investigating how business valuations can be further developed. The project partner is the Institute for Responsible Investments.