Carbon Neutrality
providing a forum to facilitate OEM and supplier dialogue and action on common approaches, tools and resources to support advancing carbon reduction efforts across the automotive value chain
Since 2002, Suppliers Partnership for the Environment (SP) has been a leading forum for global automakers and their large and small suppliers to work together to improve the environmental sustainability and business value of the global automotive supply chain, including efforts to improve energy efficiency and drive carbon reduction initiatives across the supply chain.
As companies in the automotive industry proactively work toward long-term goals of achieving carbon neutrality, it is generally expected that suppliers take an active role in striving to reduce carbon dioxide (CO2e) emissions from their businesses as far as possible.
This work group is working to develop industry-supported guidance to help companies in the automotive value chain in establishing a framework for carbon reporting and reduction, together with key definitions related to carbon neutrality. It also is providing a forum for ongoing dialogue with other groups to promote increased alignment in carbon reporting methods and consideration of supplier feedback regarding inefficiencies and duplication of effort.
SP organizes regular presentations, workshops and initiatives to educate suppliers in developing and progressing carbon reduction programs / projects, with support of subject-matter experts from SP member companies as well as government and non-profit collaborators. In addition, SP continually seeks new opportunities to support OEMs and suppliers in working together to promote common approaches and accelerate action in support of shared carbon reduction goals, while minimizing duplication of effort and reducing burdens on the supply chain.
Featured Project: Transform Auto (Renewable Energy)
The Transform: Auto program – which is being made available at no cost to Tier 1 suppliers of Ford, GM, Honda, Magna and Toyota and SP member companies – is designed to help suppliers reduce indirect emissions from energy consumption, known as Scope 2 emissions.
Featured Resource: Carbon Reduction KPIs, 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 general industry-supported guidance to help companies in the automotive value chain in establishing a framework for CO₂ reporting and reduction aligned with common industry expectations.
Featured Project: Automotive Climate Action Questionnaire
A collaborative effort facilitated by the Suppliers Partnership for the Environment (SP), Manufacture 2030 (M2030), and leading automakers and suppliers such as DENSO, Ford Motor Company, General Motors, Honda Development & Manufacturing of America, Magna, and Toyota Motor North America is engaging nearly 20,000 automotive supplier manufacturing sites globally seeking to improve consistency in Scope 3 emissions reporting and to reduce carbon emissions within the supply chain.
Featured Project: Scope 3 Maturity Benchmark
SP has entered into an MOU with the Scope 3 Peer Group and Proxima to support a Scope 3 Maturity Benchmarking initiative for our members.
Featured Resource: Carbon Reduction & Reporting Maturity Roadmap
This guidance document was collaboratively developed by automotive OEMs and tiered Suppliers participating in SP’s Carbon Neutrality Work Group to provide information on key items that companies may wish to consider along a potential carbon reduction and reporting maturity journey. This document is intended as an informational tool to help companies in the automotive supply chain to self-assess their current programs against leading practices to identify potential opportunities for continuous improvement. It is also intended as a resource to help supply chain owners in considering relevant guidance / educational resources to support their own suppliers across varying levels of maturity.
Industry Actions
Several of SP’s member companies have announced ambitious public goals focused on carbon reduction, for example:
Ford has announced a long-term aspiration to achieve carbon neutrality by 2050 for its vehicles, facilities and suppliers.
GM has announced plans to achieve carbon neutrality in its global products and operations by 2040.
Honda has announced goals for achieving carbon neutrality for all products and corporate activities by 2050.
Toyota has announced goals to achieve carbon neutrality for its facilities by 2035, and across its entire lifecycle of vehicle production by 2050.
Stellantis has stated its ambition to achieve carbon net zero emissions by 2038.
Bosch has announced its worldwide operations achieved climate neutral (scopes 1 and 2) status as of 2020.
DENSO has pledged to achieve carbon neutrality in corporate activities by the year 2035.
Henkel has announced a vision to become a climate-positive company by 2040.
Lear Corporation has announced a goal of achieving net zero emissions by 2050.
Magna has announced plans to achieve carbon neutrality in its operations by 2030 globally.
Please see our member companies’ public sustainability reports for additional information on individual company’s carbon reduction goals and initiatives.
Helpful Resources
There are a variety of public resources available from government and non-profit sources that may be helpful to educate and assist companies in the automotive value chain with regard to carbon reporting and reduction including, but not limited to:
- CDP: https://www.cdp.net/en/climate
- Greenhouse Gas Protocol https://ghgprotocol.org/
- ISO 50001 https://www.iso.org/iso-50001-energy-management.html
- Science Based Targets Initiative https://sciencebasedtargets.org/
- Task Force on Climate-Related Financial Disclosures (TCFD) https://www.fsb-tcfd.org/
- US EPA Center for Corporate Climate Leadership: https://www.epa.gov/climateleadership
- US EPA ENERGY STAR Industrial Partnership Program: https://www.energystar.gov/industrial_plants
- US EPA Green Power Partnership: https://www.epa.gov/greenpower
- US EPA SmartWay Partnership Program: https://www.epa.gov/smartway
- US DOE Better Plants Program https://betterbuildingssolutioncenter.energy.gov/better-plants
Note: The resources listed above are provided for educational purposes only. SP cannot endorse, guarantee or recommend any information, products or services provided by any 3rd party organization listed above, and SP and its member companies make no warranty, expressed or implied, and assume no liability for the resources listed here.