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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

INTRODUCTION

The CEC embarked on this project of “Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain” with the objective of re-engaging key automotive companies for the development and implementation of green supply-chain programs across North America. This builds precisely on the language within the 2010–2015 CEC Strategic Plan of: “building on our success in the automotive manufacturing sector through continued efforts to green critical components of supply chains across the continent and support the ongoing recovery of this important sector.”

Initiatives for greening the North American automotive industry have been supported by the CEC in the past, specifically in the 2009–2010 Operational Plan and Council Resolution 06-06. Past CEC efforts succeeded in stimulating competitiveness to the sector and reducing environmental impacts through collaboration with the Suppliers Partnership for the Environment (SP) organization in the United States. Expansion of an automotive supply chain program into Canada and Mexico was also near completion when it was suspended by the misfortune of the unexpected economic downturn.

This project proposes now to extend work in greening the automotive supply chain throughout Canada and Mexico to create a "one window" North American program. Continuing the work already started by the CEC in the automotive sector is important to establish a successful cooperative trilateral initiative and achieve a business-driven, self-supported North American partnership that will promote greening of the automotive supply chain in North America.

Given the success of the work already underway within the United States and the strong integration of the auto sector across all three countries, this project will allow both Canada and Mexico to benefit from existing efforts in the United States, level the playing field across North America, and permit trilateral cooperation. These programs can be the foundation for automotive manufacturers and their suppliers to share information and practices that will improve environmental and economic performance within this North American sector supply chain.

In June of 2011, CEC announced the launch of this new project on “Improving the Economic and Environmental Performance of the North American Automotive Industry Supply Chain” at the National Environmental Sustainability Summit (NESS) in Detroit, Michigan, United States. Throughout the remainder of the year, the CEC worked to engage automotive manufacturers, suppliers and government representatives in the United States, Mexico and Canada in its mission to develop green automotive supply chain programs in both Mexico and Canada. By year’s end, a conceptual framework for new organizations in each country had been proposed and a series of activities had been planned to drive continued progress in each country in 2012.

The following report summarizes the project activities of June 2011 – December 2011 as the CEC worked to engage a core of key stakeholders in the initiatives in each country; identify unique environmental challenges and opportunities impacting the automotive supply chain ideally suited to the project; support the exchange of existing tools, resources and information of relevance to the sector; and, build the foundation for the creation of business-driven self-supported green automotive supply chain programs in North America.

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