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.
Building on prior guidance documents on this subject published in July 2021 and May 2022, the contents of this document were generated by a collaborative process among automotive manufacturers and tiered suppliers working through the Suppliers Partnership for the Environment (SP) including: Ford Motor Company, General Motors, Honda Development and Manufacturing of America LLC, Stellantis, Toyota Motor North America, AGC Automotive Americas, American Axle & Manufacturing, Inc., Autoneum North America Inc., DENSO, Lear Corporation, Magna International Inc., Toyota Tsusho America, Inc., and UGN, Inc.
Each participant has contributed feedback and pledged support of the following key performance indicators (KPIs) and definitions.
Guidance Document: 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.
Acknowledgements: This guidance document was produced through a collaborative process by the Suppliers Partnership for the Environment (SP) Carbon Neutrality Work Group with input from representatives of SP member companies including Ford Motor Company, General Motors, Honda Development and Manufacturing of America LLC, Stellantis, Toyota Motor North America, AGC Automotive Americas, American Axle & Manufacturing, Inc., Autoneum North America Inc., DENSO, Lear Corporation, Magna International Inc., Toyota Tsusho America, Inc., and UGN, Inc.
Disclaimer: This document is not intended to be a comprehensive list of KPIs or metrics for CO₂ reporting and reduction. Furthermore, the individual requirements set forth by customers, or individual companies working with sub-tier suppliers, may be unique and / or include much more detailed requirements. This document is also not intended to establish a standard by which suppliers should report to all customers. It is intended to minimize duplication of effort and elevate best practice around key aspects of supply chain engagement on CO₂ reporting and reduction on the path to carbon neutrality.