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CR Team Reflection: 2019

2019 - 2020. blog

AIAG and its member companies have worked collaboratively over the past several years to consistently offer new and eye-opening information to assist you and your company. Moving forward into 2020, our mission to educate, inform, and advance transparency in the automotive supply chain continues.

Here are some of the CR team’s accomplishments for 2019.

AIAG Gathers Volunteers to Help Create Environmental Tools and Solutions
Volunteers are being gathered to join AIAG create the best solutions for the industry, including trainings, webinars, common tools, publications, and events. These important workgroups enable AIAG to develop resources that support the needs of the industry, which is why member participation and feedback is so crucial. Available workgroups include Energy Benchmarking, Water Benchmarking Subgroup, Environmental Sustainability, and Greenhouse Gas. Email Program Manager Lecedra Welch at cr@aiag.org for more information on how you can give back to the automotive community.

2019 Heavy Equipment & Auto Suppliers Chemical Compliance Summit
AIAG’s first event of its kind, held in Nashville, Tennessee, this event discussed Substances of Very High Concern (SVHC) regulations, business impacts, and industry-wide cooperative efforts addressing the challenges when these substances are found in products.  This 1-1/2 day summit, which targeted manufacturers and distributers, discussed expanding global legislation, varying customer compliance requirements, and internal best practices. Experts known in the business gathered to talk about full material disclosure (FMD) and how addressing regulatory challenges such as REACH, RoHS, and California Prop 65 allows for risk assessment of potential supply disruptions due to extreme weather, critical mineral shortages, or geopolitical aspects along with material substitutions necessary because of substance bans.

Responsible Materials Industry Briefing: Expanding Beyond Boundaries of 3TG, Dodd-Frank and DRC
Recent European and Chinese regulatory influence on the automotive industry's reporting of tantalum, tin, tungsten, and gold (3TG) and other minerals (cobalt, mica, lithium, and more) has necessitated additional support in the future to assess all global regions of conflict. To proactively address these issues within the supply chain, AIAG’s Responsible Materials Work Group (formerly known as the Conflict Minerals Work Group) recently expanded its scope to focus on the responsible sourcing of materials beyond conflict minerals. This industry briefing, held June 11, 2019, focused on responsible sourcing of raw materials.

Industry Wide Letter of Commitment to Health & Safety
This letter was cosigned by six vice presidents of purchasing and sent industry-wide. It identified health and safety (H&S) concerns and asked automotive OEMs and suppliers to better support H&S by identifying best practice (BP) programs, processes, and equipment information. These BPs will support companies on a global basis in hazard identification, risk reduction, regulatory compliance, and data management and reporting. Visit https://www.aiag.org/corporate-responsibility/health-and-safety for more information.         

2019 IMDS & Product Chemical Compliance Conference
BEYOND ELV: The Expanding Requirements for Compliance Reporting focused on how to meet upcoming and ever-changing requirements such as GDPR, REC019, Waste Framework Directive, ELV, and REACH. Attendees left with fresh insights on the reporting requirements and regulations that affect their day-day business and were looking at how to get more involved.

Contractor Safety Management Framework
Created in collaboration with automakers, suppliers, and contractors, AIAG’s Contractor Safety Management Framework outlines common processes for effective contractor safety management — specifically in construction environments — facilitating more consistent health and safety requirements for contractors among hiring clients and owners. It can also be used within any health and safety management system (e.g., ISO 45001, OHSAS 18001, ANSI Z10). The intent is to support contractors and companies in identifying and reducing health and safety hazards. Successful implementation of the framework’s processes will also help expand and improve the collaboration between hiring clients/owners and contractors. Tasks such as prequalifying a contractor’s safety program prior to issuing a contract and tracking the contractor’s safety performance once he/she begins the project are also addressed in the framework document. The publication launched June 2019. https://www.aiag.org/store/publications/details?ProductCode=OHS-13        

Speaker Series Events
AIAG kicked off a series of free one-hour Corporate Responsibility Speaker Series events on Friday, January 25, 2019. Session topics varied with the consistent goal to create awareness and dialogue surrounding issues that impact the automotive industry and encourage proactive action by individual organizations and the industry as a whole. These in-person as well as virtual events explored numerous corporate responsibility and sustainability topics. If you were unable to tune in to the live events, we’ve got you covered: Free recordings of the webinars are now available at the AIAG store.   

  • January 25. The first webinar featured Lee O’Dwyer, an expert in environmental, social, and governance (ESG) data at Bloomberg who explained the significance of the ESG ecosystem. Attendees learned about developing trends in ESG investing, the types of ESG data readily accessible through data aggregators (like Bloomberg), how influential stakeholders are using the information provided to them, and more. The discussion also featured AIAG members who are successfully negotiating the ESG ecosystem, as well as interactive discussions and online polling to help identify the highest priority content for subsequent webinars.
  • April 30. The second webinar, “How ESG Research Firms Evaluate Supply Chain Sustainability,” featured Jessica Urdangarin, principal consultant at Publicly traded companies are increasingly inundated with requests to publish environmental, social, and governance (ESG) data. The most influential requests are coming from organizations that directly participate in financial markets, including large asset owners (CalPERS, NY State); asset managers (BlackRock, State Street); and specialized ESG research firms (Bloomberg, MSCI, Sustainalytics). Another influential piece of this ESG Ecosystem is the organizations that develop and promote ESG disclosure guidance, frameworks, and/or standards. These are generally non-profit organizations that are sometimes referenced by the financial markets and may also be referenced by governments, stock exchanges, or companies. Institutional customer demand for ESG information is rippling through entire supply chains, thereby impacting publicly traded and privately held suppliers alike. Attendees learned the information various ESG firms expect companies to provide to demonstrate sustainable supply chain practices.
  • Oct 22. The third webinar featured Kevin Haley, director of member engagement from Renewable Energy Buyers Alliance (REBA), who presented information on the rapidly growing market for corporate-backed renewable energy and included some of the benefits that companies can gain by procuring wind or solar power at scale. The webinar also reviewed several common energy transaction models and discussed the mechanics of each.

Looking Forward to 2020

  • 2020 CR Summit: ESG: Managing Your Corporate Reputation
  • Release of version 4 of the Optimum Shipping and Receiving Systems Handbook
  • New H&S Advisory Workgroup
  • New Resource Management/Recycling Workgroup
  • New product trainings/assessments
  • Global Chemical Regulatory Changes/Updates