2.2 Pollution Pollution occurs across all stages of the automotive value chain.93 Upstream production processes can lead to land, freshwater and ocean pollution, including through the release of chemicals that are harmful at high concentrations, persistent or toxic materials, highly saline water and run-off from livestock farming for leather. For example, the automotive industry uses 12% of global steel94 (with steel making up 50-60% of the average vehicle)95,96,97 and steel production generates 145 billion tons of wastewater per year.98 Furthermore, upstream mining operations, energy, chemicals and fibre production can also release atmospheric pollutants, including dust, solvents and sulphur dioxide, which contribute to acid rain. Waste is also produced from non-product outputs, including ore heaps and tailings, resins, sludges, glass, metal and polymers. In direct operations, the automotive manufacturing process itself can contribute to land, freshwater and ocean pollution, with metals and metal compounds making up 71% of the chemical waste managed by the automotive industry.99 Other pollutants include atmospheric emissions from manufacturing processes and noise pollution. Waste is similarly produced from non-product outputs, including glass, metal, polymers, cardboard, rubber and leather. For example, 750,000 tonnes of waste was generated during car production in the EU in 2022.100 Finally, the downstream use of vehicles can have material impacts on both the environment and human health. Downstream, land, freshwater and ocean pollutants include particulate matter and chemicals, such as microplastics from tyre wear, brake wear, dust resuspension, motor oil leaks and washer fluids. Indeed, a 2020 study by the Pew Charitable Trusts found that 78% of microplastic leakage into the ocean (approximately 1 million tons) was caused by tyre dust in 2016.101 Reducing mileage, better water sedimentation disposal and other known solutions can all help address this challenge. The study found, however, that without novel innovation for tyre design and manufacturing, tyre dust will remain the largest contributor of microplastic leakage into the ocean. Microplastics are not just a problem in the ocean. The impact of microplastics in terrestrial environments is being studied, with indications that they can cause impacts on soil health and nutrient cycling, alongside other processes.102 Likewise, fluid pollutants such as motor oil also flow into waterways, where 1 gallon of used oil can contaminate 1 million gallons of water.103 Non-GHG air pollution (including pollutants such as nitrogen dioxide, particulate matter, hydrocarbons and carbon monoxide) is also a material impact from downstream vehicle use. Road transport was the largest source of nitrogen oxides in the EU in 2020 and was responsible for 37% of emissions,104 with 52,000 deaths attributed to nitrogen dioxide in the EU in 2021.105 Globally, roadside traffic was responsible for 25% of particulate matter (PM2.5) pollution in urban areas, with the majority estimated to be non-exhaust matter. Exposure to ambient particulate matter has been ranked as the seventh most important risk factor for mortality, causing an estimated 4.2 million premature deaths globally in 2015.106 A 2020 study by the Pew Charitable Trusts found that 78% of microplastic leakage into the ocean (approximately 1 million tons) was caused by tyre dust in 2016.78% 21 Nature Positive: Role of the Automotive Sector

Nature Positive Role of the Automotive Sector