Key KPIs to Track and Reduce CO₂ Among Automotive Suppliers
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 – has published a new guidance document on supply chain carbon reporting and reduction developed by a collective of automotive sustainability leaders.
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 – working through an SP GHG Work Group 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.
Guidance Document: Key KPIs to Track and Reduce CO₂ Among Automotive Suppliers
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 succinct industry-supported guidance to help companies in the automotive value chain in establishing a framework for CO₂ reporting and reduction.
“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,” 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,” Kevin Butt, Senior Director, Environmental Sustainability, Toyota Motor North America.
Acknowledgements: This guidance document was produced through a collaborative process by the Suppliers Partnership for the Environment (SP) GHG Work Group with input from representatives of SP member companies including Ford Motor Company, General Motors, Honda Development and Manufacturing of America LLC, Stellantis, and Toyota Motor North America.
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.