Step-01
ESG Baseline & Materiality
Full ESG baseline across manufacturing plants — BRSR Core gap mapping, OHS system audit and Scope 3 category prioritisation. CAFE Phase III exposure modelling and ELV EPR obligation assessment.
4–6 Weeks
Industry Focus — Automotive Industry
ESG for India's Automotive Industry
From EV transition strategy and battery material sourcing to Scope 3 Category 11 tailpipe emissions and CAFE compliance — we help OEMs, Tier 1 suppliers and EV players navigate every ESG obligation with evidence and precision.
BRSR CoreGHG ProtocolSBTiCAFE NormsISO 14001EU CBAM
3rd
largest auto market globally — India projected to lead EV growth in Asia by 2030
46%
of Scope 3 emissions come from Category 11 (vehicles in use) — the largest gap
₹10L Cr
EV ecosystem investment targeted under India's FAME III / PLI schemes
71%
of Tier 1 auto suppliers lack verified GHG data required by OEM ESG programmes
Material Topics
What ESG topics are most material?
Based on SASB Industrials, GRI standards and our proprietary materiality database across 200+ clients.
S
CriticalScope 3 Cat. 11 — Tailpipe & Lifecycle Emissions
For automotive OEMs, vehicles in use (Cat. 11) account for 60–80% of total carbon footprint. EU CBAM, OEM supply chain ESG mandates and CAFE compliance all require product-level lifecycle carbon accounting.
InvestorsEU RegulatorsOEM Buyers
B
CriticalBattery Material Sourcing & Responsible Minerals
EV battery supply chains involve cobalt, lithium, nickel and manganese — all flagged under conflict minerals and human rights due diligence frameworks. EU Battery Regulation requires carbon footprint and sourcing declarations for batteries sold in Europe.
EU RegulatorsOEM CustomersInvestors
C
HighCAFE & Phase-Out Compliance Strategy
Corporate Average Fuel Economy (CAFE) Phase III norms (2027) set stringent fleet average emission standards. OEMs and fleet operators need transition pathway modelling and product mix strategy to avoid penalty exposure.
MoRTHInvestorsFleet Buyers
W
HighWorker Safety in Paint Shops & Foundries
Automotive paint operations (VOC exposure), casting and forging (heat stress, heavy metals) are high-OHS-risk processes. LTIFR, occupational illness and PPE compliance are BRSR Core mandatory disclosures.
RegulatorsInvestorsWorkers
E
HighELV & Battery End-of-Life Management
Draft End-of-Life Vehicle (ELV) Rules and Battery Waste Management Rules mandate producer responsibility for vehicle recycling and battery collection. Extended Producer Responsibility compliance is approaching for OEMs.
MoEFCCInvestorsRegulators
T
MediumTier 1–3 Supplier ESG & EU CBAM Exposure
Indian auto component exporters supplying EU assemblers face CBAM embedded carbon reporting and CSDDD supply chain due diligence requirements. Tier 1 suppliers must document and verify ESG performance down their own value chain.
EU RegulatorsOEM BuyersInvestors
Regulatory Landscape
Every regulation that applies to your operations
Framework / Regulation
Type
Scope & Applicability
Effective
Framework
BRSR Core (SEBI)
Securities & Exchange Board of India
TypeMandatory
Scope
Listed auto OEMs and component manufacturers in NIFTY 1000. Assured GHG, water and OHS KPIs.
Effective
FY 2023–24
Framework
CAFE Phase III Norms
Ministry of Road Transport & Highways
TypeMandatory
Scope
All passenger vehicle OEMs selling in India. Fleet average CO₂ target of 91 g/km by FY2027.
Effective
FY 2027
Framework
Battery Waste Management Rules 2022
MoEFCC
TypeMandatory
Scope
EV battery manufacturers and importers. EPR obligations for collection, recycling and reporting.
Effective
Active
Framework
EU CBAM — Auto Components
European Commission
TypeEmerging
Scope
Steel and aluminium components exported to EU. Embedded carbon declaration required from Jan 2026.
Effective
Jan 2026
Framework
EU Battery Regulation
European Commission
TypeMandatory
Scope
EV batteries placed on EU market. Carbon footprint declaration, responsible sourcing and recycled content mandates.
Effective
2025–2027
Framework
GHG Protocol Product Standard
WRI / WBCSD
TypeVoluntary
Scope
Lifecycle GHG accounting for vehicles. Required by global OEM supply chain ESG programmes (Volkswagen Group, Stellantis).
Effective
OEM-Driven
Framework
OECD Guidelines on Responsible Minerals
OECD
TypeVoluntary
Scope
Due diligence on cobalt, lithium and nickel sourcing for EV batteries. Required by EU Battery Regulation and IFC.
Effective
Investor-Driven
Framework
SBTi Automotive Sector Pathway
SBTi Coalition
TypeVoluntary
Scope
Net Zero targets aligned to 1.5°C including Scope 3 Cat. 11. Required by CDP and investor coalitions.
Effective
Investor-Driven
Mandatory — legal obligation
Voluntary — investor / buyer expectation
Emerging — regulatory pipeline
Our Approach
How we work with automotive companies
A four-phase programme spanning OEM operations, product lifecycle carbon accounting, battery supply chain due diligence and CAFE compliance strategy.
Step-02
GHG Inventory — Operations & Product Lifecycle
ISO 14064-3 verified Scope 1, 2 & 3 inventory. Product-level lifecycle GHG accounting for CAFE and EU CBAM. Battery supply chain carbon footprint and EU Battery Regulation due diligence.
8–12 Weeks
Step-03
Transition Strategy & Supplier ESG Programme
EV transition roadmap, renewable energy procurement (PPAs/RECs), Tier 1–3 supplier ESG scoring and ELV/battery EPR compliance system implementation.
Ongoing
Step-04
BRSR Assurance & OEM Supplier Reporting
Annual BRSR Core assured disclosure with simultaneous output for CDP, global OEM ESG questionnaires (Volkswagen, Toyota, Stellantis) and EU Battery Regulation — from a single verified data set.
Annual Cycle
Typical ESG Maturity Uplift
GHG Data Coverage89%
BRSR Core Score86%
CAFE Compliance Score92%
Supplier ESG Coverage68%
Lifecycle Carbon Accuracy84%
Certifications We Deliver
ISO 14001ISO 45001IATF 16949SBTiBRSR AssuredGHG Verified
Our Services
What we deliver for automotive industry
Pulled from all three practice areas — Strategy & Advisory, Finance & Risk, and Governance & Social — filtered for automotive industry priority.
Priority
GHG Inventory & Lifecycle Carbon Accounting
ISO 14064-3 verified Scope 1, 2 & 3 inventory with GHG Protocol Product Standard lifecycle accounting per vehicle model. Covers CAFE compliance modelling and EU CBAM embedded carbon calculation.
Priority
BRSR Core Assurance for Auto Companies
End-to-end BRSR Core data collection, KPI calculation (energy intensity, water intensity, LTIFR, GHG intensity per vehicle), narrative drafting and third-party assurance.
Battery Supply Chain Due Diligence
EU Battery Regulation compliance — responsible sourcing declarations for cobalt, lithium, nickel and manganese. OECD due diligence programme, battery carbon footprint and recycled content tracking.
CAFE Phase III Strategy & EV Transition Roadmap
Fleet mix modelling for CAFE Phase III compliance, EV portfolio transition strategy, PLI incentive optimisation and FAME III alignment analysis.
Tier 1–3 Supplier ESG & EU CBAM Advisory
Automotive supply chain ESG scoring, CBAM embedded carbon calculation for steel and aluminium components, and supplier capacity building for EU CSDDD compliance.
ESG-Linked EV Capex Financing
Structuring of sustainability-linked loans and green bonds for EV manufacturing capex, battery assembly and charging infrastructure — with KPI ratchets on GHG intensity and renewable energy share.
ESG Benchmarking
Where do automotive industry companies stand on key ESG metrics?
Automotive Sector ESG Performance Index
GHG Disclosure Quality
31%
89%
84%
Lifecycle Carbon Accounting
12%
87%
76%
Supplier ESG Coverage
11%
78%
68%
OHS System Maturity
38%
92%
86%
India Average
Global Best Practice
ESG Astraa Clients
EU CBAM is the most immediate export risk
Indian auto component exporters supplying EU assemblers with steel and aluminium content must file embedded carbon declarations from January 2026. Most have no methodology in place.
OEM ESG audits are now a licence to supply
Volkswagen, Toyota and Stellantis ESG supplier audits are contract-renewal conditions for Indian Tier 1 partners. 'Red' or 'Amber' ratings are triggering supplier de-listing across the sector.
Battery supply chain is the next critical risk
EU Battery Regulation mandates carbon footprint declarations and responsible sourcing certifications for batteries placed on the EU market from 2025. Indian EV manufacturers supplying EU need 18-month lead time to comply.
PLI incentives require ESG performance evidence
FAME III and PLI Auto scheme disbursements are tied to verified production and quality milestones. ESG data infrastructure built for BRSR Core significantly reduces the reporting burden for PLI compliance.
Free Resource
Automotive ESG Compliance Guide for Indian OEMs & Suppliers
A practical guide to EU CBAM embedded carbon declaration, BRSR Core assurance, CAFE Phase III strategy and OEM ESG supplier audit requirements — with an India-specific implementation calendar.
What's Inside
- EU CBAM embedded carbon calculation guide for auto components
- BRSR Core KPIs for automotive — data collection templates
- OEM ESG supplier questionnaire — what Volkswagen & Toyota measure
- CAFE Phase III compliance modelling tool
- EU Battery Regulation — key requirements for Indian EV manufacturers
Automotive Industry Checklist
PDF Document
Key Areas Covered
Environment Social Governance
Get your Automotive ESG Assessment
Our automotive ESG team will assess your BRSR Core readiness, EU CBAM exposure and OEM supplier audit gaps — and give you a clear priority action plan within 2 weeks.
No commitment · CAFE & CBAM specialists · OEM audit experience · 2-week turnaround