Niklas Letmathe

2024

Researchers and practitioners are addressing the implications of companies understanding their
contribution to greenhouse gas emissions, reporting on these, and finding ways to mitigate them. As
the aviation and automotive industries face rapid carbon reduction paths, emission disclosure must
be a key element of their sustainability strategies. Since indirect Scope 3 emissions of their products
account for the largest share of the total carbon footprint for manufacturers in these industries,
reporting on these is crucial.
In CSR reporting, firms are encouraged to follow reporting standards to provide consistent and
transparent data. However, as these guidelines appear to be insufficient, this paper analyses the
emission disclosure practices of European manufacturers in the automotive and aviation industries. It
compares industry practices with suggestions found in literature to evaluate key elements of high-
quality emission disclosure.
The research found that transparency of the investigated peers is lacking, making comparability more
difficult and casting doubt on the consistency and integrity of reporting. Certain carbon accounting
methods, such as a hybrid life cycle assessment mentioned in literature, remain unused in the
reviewed peer group, although they could enhance overall quality of reporting. Lastly, the results of
this review indicate that reporting quality among automotive and aviation manufacturers is missing
completeness and consistency, partly due to insufficient standards.