“Today, there are high expectations from various stakeholders and new regulatory requirements that demand more transparency, data collection, and extended reporting for companies in the automotive aftermarket,” says Louise Wohrne.
She points to customers and investors as some of the groups demanding more robust sustainability initiatives. In summary, there are six key priorities that are expected to persist into 2025, according to Louise Wohrne:
- Electrification of the vehicle fleet
Innovation is key to meeting the rapidly growing demand in the independent automotive aftermarket. Increasing environmental awareness, technological advancements, and the greater availability of electric vehicles (EVs) for a range of budgets are driving this development forward. Battery technology continues to advance significantly, offering higher capacity and longer lifespans—factors that together substantially reduce the environmental impact of EVs. With proper training for workshops, MEKO ensures that EV owners have access to the same level of service and convenience as those with traditional vehicles. Linking sustainability to business success is a critical component of this approach.
- Implementation of new legislation
The introduction of new legislation, such as the Corporate Sustainability Reporting Directive (CSRD), the EU taxonomy, and the so-called Right to Repair directive, is shaping all industries, including the automotive aftermarket. These regulations aim to enhance companies’ sustainability performance and redirect investments towards more sustainable practices to mitigate global warming and transition to a more sustainable society.
- Improved access to Data
Higher demands for data collection and reporting will arise from 2025 due to the new rules linked to CSRD. This extensive work must be disclosed in companies’ annual and sustainability reports and communicated externally. While not all data may be flattering, increased transparency highlights areas for improvement. Through better transparency and access to data, companies can raise awareness and develop better and more sustainable solutions moving forward.
- Social sustainability: diversity and human rights
In the EU and Sweden, social issues remain a strong focus. Diversity and inclusion to boost competitiveness continue to be areas of interest for companies and investors. Additionally, there is growing attention to human rights, both within companies and, more importantly, within today’s complex value chains. Transparency and proactive measures to reduce the risk of human rights violations in supply chains will gain significantly more attention in the future.
- Greater focus on circular products
Increasing reuse, refurbishment, and recycling of products and materials to transition towards a more circular society is critical for all industries, including the automotive aftermarket. Transitioning to a circular economy is necessary to conserve natural resources and limit global warming. It is also something that more consumers are demanding. Examples from the industry include car parts made from recycled materials, rental options for workshop equipment, and products like roof boxes available for consumers.
- Increased need for collaboration with stakeholders
Companies can achieve a great deal on their own, but addressing the entire value chain and solving complex challenges requires collaboration. Through transparency and dialogue with partners and suppliers, significant changes can be made. One example where MEKO is actively involved is the Forum on Automotive Aftermarket Sustainability (FAAS), which brings together stakeholders across the automotive aftermarket value chain to work collectively for a more sustainable industry.
MEKO’s leading role in the transition
MEKO has developed a clear sustainability strategy to address these changes and act as a driving force in the transition. The strategy aligns with the group’s overall business goals and includes setting science-based climate targets (SBT) to reduce its climate impact. MEKO is focused on reducing emissions and aims to ensure that all purchased electricity under contracts owned by the group will be renewable by 2025. Additionally, MEKO is committed to transitioning its vehicle fleet to lower-carbon alternatives.
“By focusing on the specific needs of electric vehicles, promoting sustainability initiatives, and offering digital customer solutions, we are well-equipped for the changes in the industry,” says Louise Wohrne.
