Formula 1 introduced a cost cap for the 2021 season to make the sport more competitive and financially stable. However, McLaren’s chief executive Zak Brown has warned that the current rules are inhibiting the teams’ ability to invest in sustainability initiatives, which are crucial for the future of the sport and the planet.
Cost cap creates ‘unintended barriers’
McLaren released their annual sustainability report on Wednesday, highlighting their efforts to reduce their environmental impact and promote diversity and inclusion in the sport. The report also revealed that the team has encountered some challenges due to the cost cap regulations, which limit the amount of money that teams can spend on car performance and other aspects of their operations.
According to McLaren, the cost cap rules do not allow for sufficient exclusions for sustainability projects, which means that teams often have to choose between investing in performance and investing in sustainability. This creates ‘unintended barriers’ for the teams to pursue their environmental and social goals, which are aligned with F1’s vision of becoming carbon neutral by 2030 and more representative of society.
McLaren’s chief executive Zak Brown said: “We strongly believe in the cost cap and wouldn’t want to see anything that undermines its integrity. But current regulations have created some unintended barriers when it comes to investing in sustainability.”
McLaren calls for ‘a genuine step change’
McLaren has been proactive in championing discussions with F1, the FIA and other teams to explore the possibility of introducing more cost cap exclusions for sustainability initiatives. The team welcomed the FIA’s decision to establish a working group to ensure sustainability criteria are incorporated into the 2026 regulations, when a new generation of power units will be introduced.
However, McLaren believes that more needs to be done to enable a ‘genuine step change’ in the sport’s approach to sustainability. The team wants to see a level playing field for all teams to work towards achieving the same targets and no longer need to compromise on sustainability or performance.
Brown said: “It’s been fantastic to see so much support from F1 and other teams on this issue, and we’re delighted that the FIA has established a working group to explore next steps. But to unlock our sport’s potential to drive the development of more sustainable technologies that can spark positive changes on a global scale, we need a genuine step change.”
McLaren proposes wider cost cap exclusions
Along with sustainability projects, McLaren also wants to see cost cap exclusions for diversity, equity and inclusion projects, team wellbeing initiatives, and costs for intern and apprentice programmes. The team argues that these are essential for creating more opportunities and pathways for people from underrepresented backgrounds to pursue careers in motorsport and STEM fields.
Brown said: “Our sport needs a clear regulatory framework with financial, technical and sporting regulations that better enable us all to innovate and invest in sustainability. We need to find better ways to share expertise and insights across our industry. Only true collaboration will help us drive meaningful change.”
McLaren has already taken some steps to implement sustainability initiatives within the cost cap rules, such as installing solar panels at their headquarters, using fully-sustainable fuels in their power units, and partnering with charities and organisations that support environmental and social causes. The team hopes that their efforts will inspire others to follow suit and that F1 will become a leader in sustainability.
