Automakers Dial In Supply Chain for Reduced Environmental Impact
Two leading corporate responsibility business associations, AIAG and CSR Europe, facilitator of the European Automotive Working Group on Supply Chain Sustainability, today announced an unprecedented agreement has been reached among 14 global automakers on a set of standards outlining expectations for suppliers on key responsibility issues including human rights, environment, working conditions and business ethics. Participating members aligned with “The Automotive Industry Guiding Principles to Enhance Sustainability Performance in the Supply Chain” include BMW Group, Chrysler Group LLC., Daimler, Fiat S.p.A., Ford, GM, Honda, Jaguar/Land Rover, PSA Peugeot Citroen, Scania, Toyota, Volkswagen, Volvo Cars and Volvo Group.
As the companies collectively state in the Guiding Principles, “People and the environment are the automotive industry’s most important resources. For this reason, we are working together to attain the highest standard in business integrity and in the social and environmental performance of our supply chain. …The following guidelines clearly describe our expectations towards business ethics, working conditions, human rights, and environmental performance, for our suppliers as well as their subcontractors and suppliers. We expect that suppliers will uphold these standards and cascade them down their supply chain.” The guidelines, which are based on fundamental principles of social and environmental responsibility that are compliant with local law and consistent with international expectations, were first developed by AIAG in 2009, in collaboration with Ford, GM, Chrysler, Honda and Toyota.
In Europe, the automotive companies created in 2009 a specific working group to enhance collaboration in the area of sustainability in the supply chains. Since 2012 the group has been facilitated by CSR Europe. Together with AIAG, the initial guidelines were further elaborated.
“With a singularity of purpose and a common voice, the key players in our industry are collaboratively reinforcing the individual commitments each has made to doing business in a socially and environmental responsible way” said J. Scot Sharland, executive director at AIAG. “Automakers and suppliers of all sizes face heightened compliance & extended responsibility expectations, from materials sourcing, handling, reporting and disposal requirements to improving factory working conditions, so it’s imperative that we work together to develop, socialize and deploy industry best practices on a range of issues for our global supply chains.”
To establish these Guiding Principles, AIAG and CSR Europe worked with the 14 automakers to find the common points of agreement among the companies. Individual automotive companies may have their own standards, codes and policies that supersede the common Guiding Principles. “We built on the guidelines that AIAG and its member companies had established, expanding the principles and messages so they would apply to the broadest possible range of suppliers. This allows us to drive the sustainability agenda in the automotive sector even further,” said Stefan Crets, Executive Director at CSR Europe.
AIAG is a unique not-for-profit organization where, for more than 30 years, OEMs, suppliers, service providers, government entities and individuals in academia have worked collaboratively to drive down costs and complexity from the supply chain via global standards development and harmonized business practices. AIAG membership has grown to more than 960 members and includes renowned manufacturers, and many of their parts suppliers and service providers. For more information, visit www.AIAG.org.
About the European Automotive Working Group on Supply Chain Sustainability
The European Automotive Working Group on Supply Chain Sustainability (the “Working Group”) is a group of 10 automotive manufacturers – BMW Group, Daimler AG, Ford Motor Company, Jaguar Land Rover, PSA Peugeot Citroen, Scania, Toyota Motor Europe, Volkswagen Aktiengesellschaft, Volvo Cars and Volvo Group. It consists mainly of purchasing managers and CSR managers working together on sustainability issues in the automotive supply chain. In its current membership the Working Group of automotive manufacturers has been meeting since 2012 in order to – in addition to their own efforts- work together to collaborate in improving supply chains sustainability.
About CSR Europe
CSR Europe is the leading European business network for Corporate Social Responsibility. Representing 63 corporate members and 38 National Partners, it is a platform for supporting over 5000 companies from different industrial sectors to positively contribute to society.
CSR Europe connects companies to share best practice on CSR, innovate new projects between business and stakeholders, and shape the business and political agenda on sustainability and competitiveness. CSR Europe practically addresses societal challenges through the Enterprise 2020 Initiative, which fosters collaboration, innovative practical action and shapes the business contribution to the European Union’s Europe 2020 strategy for smart, sustainable and inclusive growth. For more information visit www.csreurope.org