DRIVE SUSTAINABILITY CHINA
BACKGROUND
Drive Sustainability has a global strategy, and is also aware that long lasting impact, meaningful actions, and the best solutions should be also developed at country or regional level.
Having a local network in China is crucial for Drive Sustainability in the automotive sector due to the country’s significant role as the world’s largest automotive market and a key player in global supply chains.
China’s unique socio-economic conditions, regulatory landscape, and market dynamics require localized strategies to address sustainability challenges effectively. A local network enables deeper engagement with stakeholders fostering collaboration tailored to China’s specific needs. This approach ensures that sustainability efforts align with priorities, leverage local expertise, and contribute meaningfully to China’s sustainability transition.
In 2017, Drive Sustainability set up a local network in China – Drive Sustainability China (DS China) – in partnership with GoldenBee Consulting as its local facilitator.
The aim of this network is to translate Drive Sustainability’s global strategy and tools at local level, enhance alignment and capacity building for sustainability across the industry, engage stakeholders and monitor, identify, and work together on local sustainability trends and issues.
Current DS China members include BMW, Geely, Mercedes Benz, Scania, Volvo Cars and Volvo Group.
MEMBERS
DRIVE SUSTAINABILITY CHINA’s aCTIVITIES
The OEMs address key sustainability challenges together with suppliers to enhance sustainability throughout the automotive industry by leveraging a common voice and engaging with suppliers, stakeholders and related sectors on impactful activities. Some joint efforts are made to help the suppliers improve their sustainability performance, including capacity building, sustainability knowledge and updates sharing, exchange events and more.
supplier trainings
To support suppliers to in improving their capacity in sustainable supply chain and sustainability performance, Drive Sustainability China has – between 2018 and 2024 – organized 10 trainings both online and offline, for 2,200 participants including OEMs and suppliers in automotive industry.
The training topics includes business ethics, human rights and labor, EHS, hazardous chemical management, carbon management, due diligence management and more. These trainings are selected based on the suppliers’ identfied needs as well as the sustainability challenges faced by automotive industry.
In response to the needs of suppliers to learn more on the European ESG regulations and their impact on organisations, online training ESG legislations were delivered in June 2024, attracting over 660 participants.
In October 2024, trainings on sustainability management and carbon management (policy interpretation, carbon strategy, product carbon footprint accounting and LCA) were conducted with over 100 participants attending the training delivered in Beijing.
CARBON NEUTRALITY
As the China is setting the “3060 dual carbon” goals to change economic development mode to green and low carbon, stakeholders are asked to play their part to reduce their impact on the climate and work for a carbon neutral future. Drive Sustainability and its OEMs have placed Carbon Neutrality among their ambitions until 2023 seeing the value of a common standardized approach to carbon management and reduction.
Furtheremore, building on carbon management to suppliers, Drive Sustainability China provided the Carbon Intelligence Platform to regularly update respective central and local policies inviting experts to give monthly interpretation on the related policies and regulations from 2021 to 2022. In 2023, a green factory tour was organized to exchange on the practice of green manufactures and carbon-emission reduction management.
To strengthen the communication and knowledge sharing, a Carbon Neutrality Working Group was set up in 2023, inviting international and domestic experts to exchanges on corporate practices, supply chain management tools, and policies interpretation etc. The experts come from Catena-X, SiGREEN, Baoshan Iron & Steel Co., Ltd, , and China Beijing Green Exchange.
SUPPLIER-OEM EXCHANGE EVENTS
To address both, supply chain challenges and communication strengthening between OEMs and suppliers in China, Drive Sustainability China has organised 8 supplier-OEM exchanges events between 2018 and 2024.
Were convened experts such as the CDP, OECD, ILO, Sedex, EU Chamber of Commerce, SGS, China Chamber of Commerce of Metals, Minerals & Chemicals Importers and Exporters (CCCMC), RCI, Qinghua University and others to share and discuss topics including carbon neutrality, human rights and labour, sustainability management and due diligence management.
STAKEHOLDER ENGAGEMENT
From 2018 to 2024, Drive Sustainability China has communicated and engaged with local multi-stakeholders, including:
– The China Association of Automobile Manufacturers (CAAM)
– The China Resource Recycling Association
– The China Iron & Steel Research Institute Group, the China Automotive Technology and Research Center Co., Ltd (CATARC)
– The Responsible Critical Mineral Initiative (RCI), and the China Nonferrous Metals Industry Association etc.
MILESTONES
Completed SAQs (June 2023)
Assessed suppliers (June 2023)
Trainings organised by DS China
Participants
Stay up to date with Drive Sustainability China news!
To follow-up with the latest development of sustainability and related policies, Drive Sustainability compiled its Sustainability Newsletter to update the sustainability related polices in China in order to accompany suppliers in preparing for the requirements ahead of time and learn development trends.