Foreword We are faced with intertwined, multifaceted global challenges. These include immediate impacts such as record-breaking heatwaves, unprecedented floods in atypical regions and other extreme weather events significantly driven by climate change, as well as those rapidly evolving silent beasts exemplified by biodiversity loss and ecosystem collapse. Our window to reverse global nature loss is rapidly closing. The philosophy of living in harmony with nature is deeply rooted in Chinese culture, reflected in ancient philosophies like Taoism and Confucianism and modernizing its culture integrated with ecological civilization. This enduring wisdom must be urgently awakened and translated into action. The World Economic Forum, in collaboration with Oliver Wyman, has been working in the past two years to assess how environmental challenges materialize and impact sector activities and business actions. Together, we have developed the Nature Positive Transitions: Sector Report Series. This automotive report is the first regional deep-dive report within this series and adds country-specific perspectives to the findings in the global automotive report. China remains imperative to the world economy and global supply chain. China’s automotive sector is one of the leaders in the transition towards autonomous, electric, connected and shared mobility in this new era driven by the macro force of technological revolution. Actions towards a nature-positive transition could enhance the sector’s sustainability and overall competitiveness while also facilitating resilience and new growth opportunities. The report entails Chinese business practices and potential opportunities from the automotive sector’s nature-positive transition in China. Tim Colyer Climate and Sustainability Lead, Asia Pacific, Oliver WymanZhu Chunquan Head, China Nature Initiatives, World Economic Forum Nature Positive: Role of the Automotive Sector – China Deep-dive 4

Nature Positive Role of the Automotive Sector China Deep dive