Please ensure Javascript is enabled for purposes of website accessibility Aptiv: driving sustainability - Janus Henderson Investors
For institutional investors in Denmark

Aptiv: driving sustainability

While new technology developed by the automotive industry has made modern vehicles safer, more efficient and more environmentally sustainable than ever before, efforts to improve road safety and to reduce the number of road traffic deaths and injuries are still needed.

Hamish Chamberlayne, CFA

Hamish Chamberlayne, CFA

Head of Global Sustainable Equities | Portfolio Manager


Amarachi Seery, CEnv, MIEnvSci, MIEMA

Amarachi Seery, CEnv, MIEnvSci, MIEMA

Sustainability Analyst


8 Oct 2021
3 minute read

Aptiv is a global leader in the automotive technology industry, and believes that ‘active safety’ plays a crucial role in preventing road traffic accidents. From its headquarters in North America, Aptiv is delivering mobility technologies, such as radar sensors, driver assistance and automated driving options, that are designed to better connect drivers with their vehicles and surroundings, and to make roads safer for all users.

Cleaner transport

The European Environment Agency (EEA) has shown air pollution is a major cause of premature death and disease, and is now the single largest environmental health risk in Europe. In 2018, an estimated 379,000 premature deaths resulted from exposure to air pollution.2 Chronic exposure can affect every organ in the body, complicating and exacerbating existing health conditions, ranging from irritation of the eyes and nose to cardiovascular disease.

As a global technology leader working in close partnership with some of the world’s largest automobile manufacturers, Aptiv is responding to regulatory change by helping to make vehicles greener, as well as reducing their total lifecycle impact on the environment.

Reducing vehicle weight

The packaging of Aptiv’s high voltage electrification solutions (wiring harnesses, connectors, electrical centres and cable management) can help to reduce the weight and size of the vehicle architecture by 30-40%. This can save its original equipment manufacturer (OEM) customers to reduce the weight of their vehicles, make considerable savings on investment, while also boosting the environmental performance (and reducing the emissions) of their vehicles.

Recycling

Some of Aptiv’s manufacturing processes generate scrap plastic, so it is now reusing up to 20% of re-grinded material. Aptiv is also having discussions with some of its customers to increase its 20% recycled material threshold, but without compromising the integrity or safety of its products. Therefore, this improvement is likely to take time.

Electrification

Sustainability article

Aptiv’s strategy involves the design of products that enable the electrification of transport. By 2040, more than half of all passenger vehicles sold will be electric.5 With more than 20 years of expertise in automotive-grade high-voltage electric solutions, Aptiv is well positioned to serve the automobile industry with both vehicle architecture systems and electrical distribution systems for future generations of electrified vehicles.

Source: Aptiv 2020 Sustainability Report, published in November 2020

1 World Health Organization, “Health topics – Air pollution”, [Accessed 19 July 2021].

2 European Environment Agency, “Air pollution: how it affects our health”, 14 December 2020 [Accessed 19 July 2021].

3 BBC News, “Air pollution: Coroner calls for law change after Ella Adoo-Kissi-Debrah’s death”, 21 April 2020 [Accessed 19 July 2021].

4 European Federation for Transport and Environment, “Weight-based standards make CO2 targets harder to reach,” European Federation for Transport and Environment, 2008.

5 CNN, “By 2040, more than half of new cars will be electric”, 6 September, 2019 [Accessed 19 July 2021].

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

Marketing Communication.

 

Glossary