Expand into new business models and influence customer behaviour In addition, companies can expand into new business models to extend life, facilitate improved recycling and optimize customers’ use patterns (with users’ cars currently being parked 95% of the time on average).217,218 These include: –Mobility-as-a-service models: Examples include vehicle-on-demand (such as car rental, car sharing, peer-to-peer sharing and micro-mobility) and mobility-on-demand (such as ride-hailing, ride-sharing and demand-responsive transport/ride pooling). For instance, the ALIKE project plans to put 10,000 autonomous shuttles on Hamburg’s roads by 2030, supported by the federal government, the Hanseatic City of Hamburg and a consortium of industry partners, including vehicle manufacturers such as Volkswagen Group.219 –Component-as-a-service models: Examples include battery swapping or providing a guarantee on battery service. For instance, in China, NIO had completed over 40 million battery swaps by March 2024 and offers different tiers of battery-leasing subscription models. NIO has also partnered with other Chinese automakers, including Changan, Geely, Chery and JAC, in 2023 to develop battery swap standards and expand the battery swap station network in China.220 –Leasing and subscription ownership models: Shared mobility models, such as leasing and subscription ownership, optimize customer use patterns and reduce ownership of underused vehicles. Support nature conservation and restoration In pursuing conservation and restoration efforts, companies should first take steps to rigorously apply the mitigation hierarchy at a site level and address the impacts of their own activities (avoid, reduce, then restore). Then, they should compensate for unavoidable residual impacts as a last resort after all other attempts at preventing or reducing impacts have been considered.221,222 Efforts should be aligned with a NNL or BNG goal for each project.223 It is important to note that there are certain cases where compensation is not appropriate and should not be used. Compensation efforts should follow specific principles, such as those outlined by The Nature Conservancy,224 United Nations Environment Programme (UNEP),225 IUCN226 and the Business and Biodiversity Offsets Programme (BBOP),227 including additionality, equivalency, location and temporal considerations. In many regions, compensation is supported by government policies. The number of countries with biodiversity offset policies doubled from 60 to 115 from 2001 to 2017. However, there are still regions where more regulatory development is needed or compliance is weak and where companies can work with governments to strengthen policies as well as policy compliance and implementation.228 In addition, companies are also encouraged to contribute to systems-wide conservation and restoration within and beyond their own value chains,229 and target investments towards contributing to government targets under their National Biodiversity Strategies and Action Plans (NBSAPs). Companies should adopt holistic, ecosystem-wide approaches, incorporating Indigenous ecological knowledge that promotes balance and sustainability. Companies are also encouraged to contribute to systems-wide conservation and restoration within and beyond their own value chains.3.4 Conserve and restore nature with Indigenous Peoples and local communitiesPriority action 4 36 Nature Positive: Role of the Automotive Sector

Nature Positive Role of the Automotive Sector