Powering Performance

The World Economic Forum now ranks water issues as #1 on their list of worldwide risks. The nonprofit CDP recently highlighted how large-scale investors are moving money away from “traditional” investments and into equities that are meeting the global water scarcity challenge. Water-related risks abound for business. But what’s specifically at issue in the automotive supply chain? What are the main challenges? And are there opportunities in addition to risks?

The Automotive Industry Action Group (AIAG) recently issued a call-for-action to all companies within the automotive supply chain to become fully engaged in Conflict Minerals reporting. “Your participation is critical if the industry is to achieve a transparent, conflict-free mineral supply chain, and this means supporting not only your direct customers’ requirements, but also ensuring your company’s compliance with the U.S Securities and Exchange Commission (“SEC”) conflict mineral’s rule, as applicable,” says the invitation.

On August 4, 2015, AIAG’s Conflict Minerals Briefing IV provided a greater understanding of the drivers that shape the automotive industry's due diligence for compliance with conflict minerals reporting requirements, including updates on U.S. and European legislation. A presentation titled “The Future of Global Conflict Minerals Reporting” featured Eileen H. Kane, U.S. Department of State; Michael Rohwer, CFSI; and Jennifer Guest, TetraTech. The trio shared global updates on conflict minerals requirements in Europe and China with an attentive audience.

AIAG’s Globally Harmonized System (GHS) Work Group has joined forces with the internship program at Purdue-Calumet University to create an easy-to-use reference document for chemical manufacturers, mixture companies/blenders, and distributers who must comply with the update requirements of OSHA HCS 2012.

Companies’ supply chains are increasingly affected by new laws in the U.S. and Europe that address not only materials, but also due diligence policies and practices. Many also require a manufacturer to impose requirements on its suppliers. They impact your relationship with your supplier network, and require both supplier engagement and verification.

You and your suppliers understand the challenges related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires compliance reporting by every SEC-reporting company with products that contain conflict minerals (tin, tantalum, tungsten, and gold). It’s no surprise that — given the complexity of the rule and the extent of the effort required to comply — many companies struggle with reaching a determination as to their DRC conflict minerals status. Common reasons include:

Why do long-time industry professionals volunteer their time?

We’ve all heard it said: Volunteering for your industry is one of the most important and most needed acts a professional will ever do. But in today’s increasingly challenging global climate, finding time is harder than ever. So why do people do it?

“Compliance” and “Value Proposition” are rarely spoken in the same sentence. These days, they should be.

AIAG is expanding efforts to improve the social and environmental performance of the supply chain by making its comprehensive collection of tools and training available in Portuguese, Spanish, Chinese, Turkish, and Italian.