Nature Positive Role of the Automotive Sector China Deep dive

as automotive and other manufacturing-focused industries – is often underestimated due to their interactions with nature being seen chiefly in their broader value chains. This may change as the global nature agenda rapidly evolves. Seize the 20% of global business opportunities from nature- positive transitions in China Nature-positive transitions present enormous opportunities for companies in China’s automotive industry. The World Economic Forum’s Seizing Business Opportunities in China’s Transition towards a Nature-positive Economy report estimated that the nature-positive transition could unlock $1.9 trillion in annual business opportunities by 2030 in China (representing 20% of the global total). Estimates show that undertaking the five priority actions for the automotive sector, as identified in the Nature Positive: Role of the Automotive Sector report,9 could unlock more than $160 billion of this amount in cost savings and revenue upside by 2030 in China. Managing the impacts of raw materials and operations on nature is critical, potentially contributing $157 billion in business opportunities. The transition to a circular economy represents the majority – nearly $120 billion – of the total opportunity (see Figure 1 and Table 1). Notably, the potential business opportunity could significantly exceed current estimates, which are limited by existing market statistics. For instance, service-oriented business model innovation had not yet emerged when the estimates were completed in 2022. Actions such as the conservation and restoration of nature and cross-sectoral collaboration, outlined in Figure 1, may present comparatively smaller direct business opportunities at present. With sustainability-oriented innovations (e.g. the voluntary carbon market, in which restoring nature generates transactable carbon credits) in development, however, this is certain to change. To calculate the opportunity summarized in the waterfall in Figure 1, the following opportunities from the Future of Nature and Business report were identified as relevant (see Table 1). Further information on the calculation methodology can be found in the Appendix. Drive cross-sector collaboration on standards, transparency, infrastructure and policy*Conserve and restore nature alongside Indigenous Peoples and local communities*Transform product portfolio and expand into new business models/uni00A0Avoid and reduce impact of the materialsAvoid and reduce impacts from operationsTotal130 161 270 0 1 2 3 4 54Business opportunities for the automotive sector in China by 2030 ($, billion) FIGURE 1 *Additional opportunities exist not covered in this analysis due to limitations. 8 Nature Positive: Role of the Automotive Sector – China Deep-dive