Carbon Is The Cost Nobody Budgets

Carbon Is The Cost Nobody Budgets

For 35 years, the world has measured sustainability by one number: carbon. But the same steel coil can produce carbon footprints that differ by more than 35%, all ISO-compliant, all "correct." In this episode of Beyond Cost, host Jakob Etzel sits down with Prof. Dr. Jana Backes, Junior Professor for Safety, Security and Sustainability Evaluations in Foresight Research at RWTH Aachen University, to unpack what cost engineers and procurement leaders actually need to know about carbon accounting. From CBAM and emission costs already moving through European supply chains, to why CO2 was just the warm-up, to how AI is starting to help LCA practitioners manage the complexity of real value chain data, Jana explains why standardization, not certification, is the real fix. In this conversation, you will learn: * Why two ISO-compliant carbon footprints can land 35% apart * How procurement should be pricing carbon into supply chain forecasts today * Why biodiversity is the next indicator to watch - Where AI helps in LCA, and where human judgment still wins 🎙️Find Beyond Cost Podcast on: • YouTube: https://www.youtube.com/@Beyond_Cost [https://www.youtube.com/@Beyond_Cost] • Spotify https://open.spotify.com/show/6rTr7QqITMJrHgnoa8DT7F?si=e5a53d24c2cf48f2 [https://open.spotify.com/show/6rTr7QqITMJrHgnoa8DT7F?si=e5a53d24c2cf48f2] • Apple Podcasts https://podcasts.apple.com/us/podcast/beyond-cost/id1837436790 [https://podcasts.apple.com/us/podcast/beyond-cost/id1837436790]

EP6: The Benchmarking Gap: Why Chinese OEMs Are Pulling Ahead

Every year, A2MAC1 tears down around 70 vehicles, analyzing everything from battery cell chemistry to semiconductor sourcing. For over 25 years, the company has built one of the most comprehensive automotive benchmarking databases in the world. Sascha Voglgsang, Director of Costing and Insights, works at the intersection of teardown analysis, standardized costing, and market intelligence. His work reveals how architecture decisions, supply chain strategy, and integration levels translate into cost advantage or cost burden. In this conversation with host Sasan Hashemi, Sascha Voglgsang explains what Benchmarking at an industrial scale really requires and how AI is beginning to change how cost insights are extracted from massive engineering datasets. In this episode, you will learn: * Why scale and standardized methodology determine the value of Benchmarking * How integration trends reshape EV cost structures * What supply chain localization reveals about long-term competitiveness * How AI can support cost engineering without replacing expert judgment * Why continuous yearly iteration outpaces long platform cycles The data is available. The real question is whether your organization is able to turn it into a competitive advantage.

EP5: Brutal Truth About Cost Engineering ROI: Start Early or Pay Twice

For every €1 invested in cost engineering, companies get €10 to €100 back. So why do most still miss the savings? Because they start too late. Severin Heimrath, Managing Director at AWS Innovation Partners, has spent 15 years inside manufacturing organizations and keeps seeing the same pattern: treating cost engineering as a procurement tool instead of a design tool. By the time a product reaches negotiation, 80-90% of its costs are already determined because engineering decisions, tolerances, and supplier choices have locked in the cost structure. In this episode, Severin shares what actually drives results: ☑️ Why cost engineering must start in early product development ☑️ How centralized data and cross-functional collaboration outperform Excel estimates ☑️ Where AI helps and where human expertise still wins ☑️ And how leading teams consistently achieve 10–100x ROI The technology exists, and the methods are proven. The only question is: are you starting early enough?

EP4: Hydrogen vs Electric? Europe's Real Problem Is Hesitation in a Race for Innovation

For 35 years, Dr. Rainer Balbach built automotive supply chains for Daimler AG Mercedes-Benz across Germany, India, Singapore, Egypt, and Russia. From deep-drawing aluminum to high-pressure die casting that replaced 150 sheet metal parts with one, he witnessed firsthand how innovation struggles against organizational resistance. In this episode, Rainer tells host Sasan Hashemi what nobody wants to admit: Europe stopped promoting entrepreneurs and started promoting controllers. The engineers who built empires were replaced by consultants who worship spreadsheets. Meanwhile, Singapore became a paradise for innovation. The technology isn't the problem. Europe has world-class engineering. The problem is cultural: we stopped acting like entrepreneurs and started acting like auditors. We're not failing because we can't innovate. We're failing because we won't.

EP3: Germany's Manufacturing Edge Is Fading: Can Industry Reclaim It?

Germany's economy is losing momentum while many European peers continue to grow. What needs to change? In this episode, Sasan Hashemi speaks with Dr. Andreas Cornet, former McKinsey senior partner with 30+ years in the automotive industry. They discuss why Germany may need an economic pivot, how "Shift and Lift" can guide investment and productivity, and where energy policy and regulation hold the biggest impact. The discussion is led through 30 years in consulting, from systems thinking to constructive dissent - and reflections on where past transformations could have gone further. Follow the podcast along for monthly conversations with insiders and innovators as we explore where cost management and manufacturing are heading. Find the video episodes on our YouTube Channel here: https://www.youtube.com/@Beyond_Cost