Carbon Neutrality Terms & Definitions

The Suppliers Partnership for the Environment (SP) – an association of global automakers and their suppliers working together to advance environmental sustainability through the automotive supply chain – has published a new guidance document on carbon neutrality terms and definitions developed by a collective of automotive sustainability leaders.

Developed through a collaborative process between leading global automotive manufacturers – including Ford Motor Company, General Motors, Honda Development and Manufacturing of America LLC, Stellantis, and Toyota Motor North America – working through an SP Carbon Neutrality Work Group, this new guidance document is designed to provide information to automotive suppliers on terms and definitions related to the topic of carbon neutrality to further support the supply chain in implementing carbon reduction and reporting programs aligned with common industry expectations.

The guidance builds on an existing SP document, “Key KPIs to Track and Reduce CO2 Among Automotive Suppliers”, providing general industry-supported guidance to help companies in the automotive value chain in establishing a framework for CO2 reporting and reduction.

Guidance Document: Carbon Neutrality Terms & Definitions

As companies in the automotive industry proactively work toward long-term goals of achieving carbon neutrality, it is expected that suppliers take an active role in striving to reduce carbon dioxide (CO₂) emissions from their businesses as far as possible. The purpose of this document is to provide guidance to automotive suppliers on terms and definitions related to the topic of carbon neutrality to further support the supply chain in implementing carbon reduction and reporting programs aligned with common industry expectations.