Ford, BMW, 10 Others Agree Supplier Environmental Guidelines

BMW, Ford, GM, Honda and 10 other leading automakers have agreed a set of expectations for suppliers, relating to the environment, working conditions, human rights and business ethics.

The carmakers agreeing to the “Automotive Industry Guiding Principles to Enhance Sustainability Performance in the Supply Chain” also include Chrysler, Daimler, Fiat S.p.A., Jaguar/Land Rover, PSA Peugeot Citroen, Scania, Toyota, Volkswagen, Volvo Cars and Volvo Group.

As the name indicates, the one-page document is a set of broad principles rather than prescriptive standards. For the environment, the principles are:

Companies are expected to pursue effective environmental protection throughout the supply chain in order to reduce the environmental footprint of our products through-out their life-cycle.

All products manufactured within the supply chain, and the applied materials and substances used in the process are expected to meet environmental standards for design, development, distribution, use, disposal or recycling. Such a comprehensive approach includes but is not limited to:

• Reducing energy and water consumption

• Reducing greenhouse gas emissions

• Increasing use of renewable energies

• Enhancing appropriate waste management

• Training of employees

Businesses are expected to support a proactive approach to environmental challenges, and encourage the development and diffusion of environmentally friendly technologies.

The guidelines apply to first-tier suppliers as well as their subcontractors and suppliers

AIAG first developed the basis for these guidelines in 2009, in collaboration with Ford, GM, Chrysler, Honda and Toyota.

The same year, automotive companies in Europe created a working group to enhance collaboration on supply chain sustainability. CSR Europe has facilitated this working group since 2012.

To establish the latest Guiding Principles, AIAG and CSR Europe, together with the 14 automakers, built on the AIAG guidelines and worked to find common points of agreement.

The AIAG also has projects related to greenhouse gas reporting, chemical management and reporting, and the Globally Harmonized System.