Newsletter

MATERIAL CHANGE: RISKS AND OPPORTUNITIES FOR RESPONSIBLE SOURCING IN AUTOMOTIVE AND ELECTRONICS INDUSTRIES 

One of the biggest obstacles to responsible sourcing is the access to reliable current data on the environmental and social dimensions of material production. A comprehensive analysis covering all layers of the complex automotive supply chain can only be achieved through collaboration. Therefore, the partners of Drive Sustainability launched the Raw Materials Observatory, a standardized process to commonly:

(1) Identify and assess environmental, social and governance (ESG) risks in the sourcing of raw materials, and
(2) Identify opportunities for collective actions.

The first deliverable of the Observatory is “Material Change”, a report detailing approach and first results of a continuing material prioritisation study. The study:
(1) Assesses 37 materials most commonly used in the manufacture of automotive and electronic products;
(2) Evaluates the materials against 2 sets of criteria: A material’s importance for industry, and its associated ESG risks and impacts;
(3) Presents 18 material profiles including information on major producer countries.

Material Change is intended as a risk-prioritisation resource and serves as a basis for the identification of future collective actions (read the press release). The study was commissioned to The Dragonfly Initiative by Drive Sustainability and the Responsible Minerals Initiative. Download the report here.

DRIVE SUSTAINABILITY CHINA NETWORK: CREATING IMPACT AT LOCAL LEVEL

With one the world's largest component supplier bases, China's automotive industry is facing pressing sustainability challenges. In the new era of green growth, the Chinese government is increasingly enforcing stringent environmental regulations, requiring the whole value chain to reduce, monitor and report pollutants. To mitigate risks in the supply chain and avoid mandated supplier closures, automotive companies will need to engage their entire value chain in developing sustainable solutions.

Therefore, Drive Sustainability in 2017 launched its first local network in China. Facilitated by GoldenBee CSR Consulting, seven of Drive Sustainability’s members – BMW, Daimler, Jaguar Land Rover, Scania, Volkswagen, Volvo Cars and Volvo Group – are working together to translate Drive Sustainability’s global strategy at local level and enhance capacity for sustainability in the Chinese automotive sector.

Current activities of the network cover localization of Drive Sustainability’s capacity building and compliance tools and the hosting of annual supplier trainings on supply chain sustainability. On June 07, 2018, the Chinese local network hosted its first sector exchange meeting to share best practices on sectorial approaches to supply chain sustainability. Read more