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Commission for Environmental Cooperation (CEC) Project

 

Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain

 

2011 Project Report

2011 PROJECT ACTIVITIES IN CANADA

Strategic Planning Session

On December 13, 2011 the CEC sponsored a Strategic Planning Session at the offices of the Automotive Parts Manufacturers’ Association (APMA) to begin identifying key issues and approaches for the Canadian portion of the CEC Auto Industry Supply Chain project. The meeting was designed to establish the groundwork for a larger project launch meeting in the first Quarter of 2012 that would include a broader range of participants including OEMs, suppliers and government representatives in Canada to continue discussion of the identified topics.

The meeting continued discussions from two preceding meetings held in Toronto with automotive OEMs and suppliers in November 2010 and January 2011 with the support of Environment Canada. As the Canadian Government’s programs on Chemical Issues Management had been raised as a potential area of interest for the manufacturing sector during these meetings, Environment Canada was requested to give a presentation on the program during this meeting.

The meeting provided an overview of the Canadian Environmental Protection Act, 1999 (CEPA 1999) which provides authorities for managing substances that are found to be harmful to human health and/or the environment and is jointly administered by Environment Canada and Health Canada. In addition, it provided a technical overview of planned CEPA risk assessment and management related activities in the next phase of the Chemicals Management Plan (CMP), including the “Groupings” Initiative.

The meeting provided an overview of the CEC North American Automotive Industry Supply Chain Project and the opportunity to develop a new supply chain organization that would address environmental and economic sustainability projects and activities in the automotive supply chain in Canada. The participants discussed the Suppliers Partnership for the Environment (SP) in the United States and the key Work Group activities the organization is currently addressing, as well as activities presently underway in Canada through organizations such as the Association of International Automobile Manufacturers of Canada (AIAMC), the Automotive Parts Manufacturers’ Association (APMA) and the Canadian Vehicle Manufacturers' Association (CVMA).

Participants identified potential opportunities that a new automotive supply chain organization could address to improve the economic and environmental performance of the automotive industry supply chain in Canada, including:

  • Sharing tools / resources related to Chemicals Management. However, a challenge for the project in Canada would be to identify a Chemicals Management project deliverable that would be unique and more advanced than what Environment Canada is already doing with the Chemicals Management Plan.
  • On a North American basis, the CEC project could be a valuable networking tool for companies; a resource to share global best practices and solve environmental challenges in the auto supply chain; tool on how companies can help a supplier to be more sustainable, respond faster to challenges, connect to local resources and do their jobs better.
  • Develop a forum of subject matter experts in each country that can drive solutions to environmental challenges
  • Regulatory burdens on manufacturers in Canada are increasing, including: advanced greenhouse gas verification and reporting requirements, ongoing air standards reviews, compliance certificate reviews and toxics reductions requirements. Recommend a focus on outcomes based projects
  • There is a concern for U.S. based businesses regarding import of record vs. non-resident importer issues in Canada
  • Addressing creative approaches to toxics reductions challenges; e.g. guidance documents.
  • Increasing harmonization of federal and provincial environmental regulations
  • Building on existing systems / processes and models that have demonstrated success
  • Working with government entities to highlight regulatory challenges that if addressed would lead to increased economic development in the Canadian automotive manufacturing sector
  • Developing case studies on North American environmental technology implementation challenges, and strategies to progress forward. Companies have encountered challenges introducing new technologies in Canada because of increased complexity and cost of doing business.
  • Sharing approaches and best practices that have worked well in one country and adopting / adjusting them for use in other countries
  • It is important that the project address unique issues that are not already being addressed by existing organizations – for example, there are a number of organizations in Canada that have as their mission advocacy for the automotive industry.

At the close of the meeting, a draft concept paper had been reviewed for a new automotive supply chain organization in Canada, the Suppliers Partnership for the Environment – Canada (SP Canada). The concept paper includes the following vision, mission and proposed key issues for the new organization:

Vision: Create a member driven organization that will provide automobile original equipment manufacturers and their suppliers the opportunity to address new, innovative and voluntary environmental sustainability projects and activities that will improve environmental performance while providing value throughout the automobile supply chain in Canada with the Government of Canada in a technical resource and departmental liaison capacity.

Mission: Create and provide tools, identify and support synergies through collaboration and cooperation, and provide competitive advantage through projects and activities that will provide economic and environmental value throughout the automobile supply chain for issues identified by participants within SP Canada.

Potential Key Issues:

  • Energy Efficiency
  • Technology and Innovation
  • Waste Management and Resource Creation
  • Water Sustainability

A follow up meeting of the SP Canada organization that would include a broad range of OEMs, suppliers and government representatives is planned for the first quarter of 2012. Next steps for the organization will include finalizing the vision, mission and key focus issues at the first quarter meeting, and organizing Work Groups to address the issues identified.

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