Automakers Collaborate on Common Guidance for Supplier Carbon Reporting and Reduction

Washington, DC – 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 – today announced the publication of a new guidance document on supply chain carbon reporting and reduction developed by a collective of automotive sustainability leaders.

“As companies in the automotive industry proactively work toward long-term goals of achieving carbon neutrality, it is increasingly expected that suppliers take an active role in striving to reduce carbon emissions from their businesses as far as possible,” said Steve Hellem, Executive Director, Suppliers Partnership for the Environment (SP).

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 – this new guidance document is designed to help companies in the automotive value chain in establishing a framework for carbon reporting and reduction aligned with common industry expectations and requirements.

The document outlines five key performance indicators (KPIs) which each of the noted OEMs has contributed feedback to and pledged support of.  The KPIs outline at a high-level common industry recommendations regarding items such as, standard reporting cycles, long-term target-setting, comprehensive carbon reduction plans, consistent education and expectations for suppliers, and supplier recognition processes.

“For many years, SP has worked to facilitate open communication, education and collaboration between OEMs and suppliers to advance best practice in all aspects of environmental sustainability. This new guidance is intended to promote consistent approaches in relation to common industry expectations and elevate best practice around key aspects of supply chain engagement on the path to carbon neutrality,” said Kellen Mahoney, Program Director, Suppliers Partnership for the Environment (SP).

The SP working group members recommend that automotive suppliers carefully review this new guidance to benchmark their existing internal carbon reporting and reduction processes against industry best practice.  Suppliers are also strongly encouraged to cascade this information along the automotive supply chain as best practice guidance at all levels.

The automotive supply chain carbon reporting and reduction guidance document is available to download at no-cost at https://www.supplierspartnership.org/supplier-ghg-guidance

Industry Perspective

“In response to the urgency of climate change, Ford has established science-based targets aligned with the Paris Climate Agreement that support our ambition to be carbon neutral across our vehicles, facilities and operations no later than 2050. Suppliers play a critical role in helping us achieve carbon neutrality, and we are working with them to establish clear targets to meet our collective goals for reducing emissions,” said Deb Heed, manager, supply chain sustainability, Ford Motor Company.

“At Honda, we are striving to achieve carbon neutrality for all products and corporate activities by 2050. We know we cannot achieve this vision alone and welcome additional opportunities to work together with our supplier partners and industry colleagues to support each other in sharing know-how and tools to drive meaningful improvements and accelerate our journey toward a carbon-free society,” said Alissa Yakali, Sustainability Manager, Honda Development and Manufacturing of America LLC.

“General Motors is committed to reaching carbon neutrality across our global products and operations by 2040. As we work toward a zero emissions future, we recognize the importance of working together with our suppliers and industry colleagues to share best practices, learn from each other and accelerate action to meaningfully reduce emissions through the supply chain,” said Frederick Gersdorff, Compliance and Sustainability Manager, GPSC – Strategy, Planning and Operations, General Motors.

“As part of our Environmental Challenge 2050, Toyota set three goals to combat climate change and reduce carbon emissions across the vehicle life cycle, including partnering with our suppliers and dealers to help them eliminate their carbon emissions. We believe that by working together with our suppliers and colleagues across the industry, we can scale up our positive impacts and make a significant difference,” said Kevin Butt, Senior Director, Environmental Sustainability, Toyota Motor North America.

About SP

The Suppliers Partnership for the Environment (SP) is an association of automakers and their suppliers working in collaboration with the US EPA and other governmental entities toward a shared vision of an automotive industry with positive environmental impact. Learn more at: https://www.supplierspartnership.org/

© 2021 Suppliers Partnership for the Environment