- | 9:15 am
Why this climate scientist now works for a car company
Spencer Reeder knew that car companies like Audi would have to fundamentally change, pivoting from a long history of making internal combustion engines.
Early in his career as a climate scientist, Spencer Reeder traveled to Antarctica to study the impacts of climate change firsthand. He later worked on climate policy for the state of Washington, served as a lead author on the U.S. National Climate Assessment, and worked for Microsoft cofounder Paul Allen helping fund more climate research. Today, he works for a car company.
āI was feeling, increasingly, this imperative to get involved in the emissions reduction side,ā says Reeder, who now serves as the director of both sustainability and government affairs for Audi of America. He had worked to try to pass a cap-and-trade law in the state of Washington, but the bill failed, leading him to feel frustrated with the political processāand to think more about the potential of working in industry. By 2016, as transportation surpassed electricity as the biggest source of emissions in the U.S., ātransportation was sort of in the crosshairs for everybody in the climate community,ā he says.Part of making transportation more climate-friendly will come from walkable neighborhoods and better public transit. But Reeder knew that car companies like Audi would also have to fundamentally change, pivoting from a long history of making internal combustion engines, or ICEs. (Audi is among the oldest automakers, having spun out of a company first founded in 1899.) In 2018, he sat down with the president of Audi of America at the time, Scott Keogh, to interview for the companyās sustainability director job.
āI looked him in the eye and we interviewed each other, essentially,ā he says. āI just said, how serious are you about making this pivot to electric vehicles? And how serious are you about the underlying context that this is a climate imperativeālike, youāre not just doing this because Teslaās your competitor, and this is sort of a cool business opportunity. . . . Is there a systemic commitment to addressing climate change?ā
Reeder says he was convinced that the company was serious about changing, and he ended up taking the job. Three years later, in 2021, Audi announced that every new model after 2025 would be fully electric. The company will phase out older ICE models by 2033. Some other major car companies, including Ford and General Motors, are moving a little more slowly, saying that they will try to phase out global sales of gas and diesel vehicles by 2040, or 2035 in major markets.āWeāve essentially bet the future of the company on [electric] technology, and itās the single most significant thing that we can and must do to address the climate crisisātransform our company into an electric vehicle company,ā Reeder says. āIt would be very difficult for the company if this doesnāt translate into the absolute dominant form of transportation.ā
This year, after introducing the electric Q4 e-tron, Audi will have more fully electric EVs in the market in the U.S. than any other automaker, and Reeder calls the company āfar more aggressiveā than competitors in the industry.
Reeder also helped introduce new policies like an internal price on carbon, modeled after a similar program at Microsoft. Because Audi of America doesnāt manufacture cars itself, some of the divisionās biggest internal climate impacts come from things like employee flights. The company tacks on a fee for flights at $200 per ton of carbon emitted per trip. Reeder was convinced that the fee needed to be high.
āIf someone had to pay an extra $20 or $30, is that really gonna affect their decision-making? Probably not. We want the signal to be big enough,ā he says. The money goes into an internal sustainability fund to pay for more company projects.
In his dual role as the director of sustainability and of government affairs, heās able to ensure that the companyās sustainability goals translate to its outward-facing lobbying efforts.
āYou may have a group of sustainability advocates within a company, and then youāve got the government affairs team running off advocating for something thatās just purely in the business interest, and maybe compromises the otherwise good positions on climate or sustainability that a company may have,ā Reeder says. āAnd I think thatās not an uncommon problem in industry. And we have the benefit that Iām the same person.ā
Company leaders recognized the case for ambitious action, Reeder says, though others took more convincing.āThere was some skepticism within some of the midlevel people,ā he says. āWeāve got this great history of rally car racing and all these great internal combustion engines we make, and people love us for thatāwhy would we walk away from that? There was some inertia to overcome there.ā
To help make the case for ambitious climate action, Reeder has worked to build awareness internally about what climate change means personally for company employees and their communities. And because the directive for climate action was coming from the top, he says, it has moved forward quickly.
When the Trump administration said that itĀ planned to take away Californiaās ability to set stricter emissions standards for cars, Audiās parent, Volkswagen Group, was one of a handful of car companies to say that it would voluntarily meet Californiaās standard. (The Biden administration has sinceĀ reinstated Californiaās emissions waiver.) Reeder also spends time advocating for more government investment in electric charging infrastructure, a critical part of speeding up consumer adoption of EVs.In Europe, Audi is working to reduce its emissions from manufacturing through projects like a pilot with Alcoa to useĀ low-carbon aluminum that emits oxygen instead of carbon dioxide when itās smelted. Its factory in Belgium is plastered with nearly a million square feet of solar panels. Still, the main change that matters is the shift to EVs.
āWe really are doing a lot of hard work to make direct emission reductions, which is really important, but at the end of the day, itās about electric vehicles,ā Reeder says. āWe could do all that other stuff super well. But until we really get the majority of our portfolio to electric vehicles, and thatās what we sell principally, we still have work to do. Thatās our core responsibility.ā