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Porsche to suppliers: Switch to green energy or lose business in the future

The German carmaker specifically said suppliers will not be considered for future long-term contracts if they don't oblige.

Porsche Taycan assembly
Porsche needs its suppliers' help.

Porsche wants the companies that supply crucial parts for its vehicles to make the switch to renewable, green energy, and it's doing it with more of a push than a guiding hand. Last week, the company called on its suppliers to switch to green energy and explicitly noted, "Suppliers who are unwilling to switch to certified green energy will no longer be considered for contracts with Porsche in the long term." Money talks.

The company's goal of reaching carbon neutrality across its entire operation -- including suppliers -- by 2030 will need hefty cooperation. Right now, Porsche said suppliers are responsible for about 20% of the company's total carbon dioxide production. However, suppliers will be responsible for even more emissions within Porsche's chain as it begins electrifying its vehicle lineup. The brand said suppliers will be responsible for 40% of emissions as the carmaker itself makes changes to become carbon dioxide neutral. The Taycan, for example, is a carbon-neutral car. Believe it or not, the 911 and 718 models are also carbon neutral, and this year, the Macan and Panamera earned that accolade, too.

And that's why Porsche's turning its attention to suppliers to reach its 2030 goal, since a lot of its own work is in motion or done. Porsche still has over $1 billion to invest into renewables this decade to go further, but now, it needs suppliers to step up.